Insperity, Inc (NSP) has reported a 17.70 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $14.06 million, or $0.66 a share in the quarter, compared with $11.95 million, or $0.48 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $16.69 million, or $0.78 a share compared with $14.17 million or $0.57 a share, a year ago.
Revenue during the quarter grew 12.18 percent to $702.54 million from $626.29 million in the previous year period. Gross margin for the quarter contracted 28 basis points over the previous year period to 16.77 percent. Total expenses were 96.76 percent of quarterly revenues, down from 96.82 percent for the same period last year. This has led to an improvement of 6 basis points in operating margin to 3.24 percent.
Operating income for the quarter was $22.77 million, compared with $19.94 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $31.35 million compared with $28.28 million in the prior year period. At the same time, adjusted EBITDA margin contracted 5 basis points in the quarter to 4.46 percent from 4.52 percent in the last year period.
“We are pleased with our third quarter and year-to-date growth and profitability as we continue to see strong demand for our best of class service offerings,” said Paul J. Sarvadi, Insperity chairman and chief executive officer. “We are off to an excellent start on our fall campaign selling and retention season which sets the stage for a strong 2017.”
On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.52 to $0.57 for the fourth-quarter. For financial year 2016, the company projects diluted earnings per share to be in the range of $3.53 to $3.58 on adjusted basis.
Working capital declines
Insperity, Inc has witnessed a decline in the working capital over the last year. It stood at $63.80 million as at Sep. 30, 2016, down 16.49 percent or $12.60 million from $76.40 million on Sep. 30, 2015. Current ratio was at 1.13 as on Sep. 30, 2016, down from 1.16 on Sep. 30, 2015.
Days sales outstanding went down to 33 days for the quarter compared with 40 days for the same period last year.
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