Insperity, Inc. (NSP) has reported an 8.98 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $35.63 million, or $1.69 a share in the quarter, compared with $32.69 million, or $1.53 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $38.64 million, or $1.84 a share compared with $34.91 million or $1.63 a share, a year ago. Revenue during the quarter grew 10 percent to $882.66 million from $802.41 million in the previous year period. Gross margin for the quarter contracted 64 basis points over the previous year period to 18.05 percent. Total expenses were 93.94 percent of quarterly revenues, up from 93.39 percent for the same period last year. That has resulted in a contraction of 55 basis points in operating margin to 6.06 percent.
Operating income for the quarter was $53.49 million, compared with $53.04 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $62.71 million compared with $61.19 million in the prior year period. At the same time, adjusted EBITDA margin contracted 52 basis points in the quarter to 7.11 percent from 7.63 percent in the last year period.
"We are pleased with our first quarter results and the solid execution driving our successful year-end transition," said Paul J. Sarvadi, Insperity chairman and chief executive officer. "This strong start to the year, combined with a 13% increase in the number of trained Business Performance Advisors, sets the stage for another record setting year in 2017."
For fiscal year 2017, Insperity, Inc. expects net income to be in the range of $78 million to $81 million. The company forecasts diluted earnings per share to be in the range of $3.70 to $3.84. It company forecasts diluted earnings per share to be in the range of $4.30 to $4.44 on adjusted basis.
For the second-quarter 2017, Insperity, Inc. expects net income to be in the range of $10 million to $11 million. The company forecasts diluted earnings per share to be in the range of $0.49 to $0.55. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.65 to $0.71.
Working capital increases sharply
Insperity, Inc. has recorded an increase in the working capital over the last year. It stood at $59.53 million as at Mar. 31, 2017, up 29.51 percent or $13.56 million from $45.97 million on Mar. 31, 2016. Current ratio was at 1.10 as on Mar. 31, 2017, up from 1.08 on Mar. 31, 2016.
Days sales outstanding went down to 24 days for the quarter compared with 25 days for the same period last year.
At the same time, days payable outstanding was almost stable at 1 days for the quarter, when compared with the previous year period.
Debt remains stable
Total debt remained stable at $104.40 million as on Mar. 31, 2017, when compared with the last year. Long-term debt remained stable at $104.40 million as on Mar. 31, 2017, when compared with the last year. Total debt was 11.24 percent of total assets as on Mar. 31, 2017, compared with 11.86 percent on Mar. 31, 2016. Debt to equity ratio was at 1.21 as on Mar. 31, 2017, down from 1.89 as on Mar. 31, 2016. Interest coverage ratio improved to 85.86 for the quarter from 83.27 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
