Administaff, Inc. (NYSE: ASF), a leading provider of human
resources services for small and medium-sized businesses, today
reported results for the second quarter and six months ended June
30, 2010. For the second quarter, the company reported net income
of $5.1 million, or $0.20 per diluted share, compared to $5.4
million and $0.22 per diluted share in 2009. For the six months
ended June 30, 2010, the company had net income of $7.4 million, or
$0.29 per diluted share, compared to $13.6 million and $0.54 in
2009.
“We are pleased with our continued recovery and the resiliency
of our business model reflected in our second quarter results,”
said Paul J. Sarvadi, Administaff chairman and chief executive
officer. “Our strong financial position allows us to invest in
organic growth of our core business and be opportunistic in adding
new revenue and income streams in spite of the weak economic
climate.”
Second Quarter
Results
Revenues for the second quarter of 2010 increased 2.0% over the
2009 period due to a 5.1%, or $63 increase in revenues per worksite
employee per month, offset by a 2.9% decrease in the average number
of worksite employees paid per month.
The average gross profit per worksite employee per month
increased 2.3% to $226 in the second quarter of 2010 from $221 in
the 2009 period. The average gross profit per worksite employee per
month was $17 higher than expected, due primarily to a smaller than
expected deficit from benefits of $6, and contributions of $5 from
payroll taxes, $3 from workers’ compensation, and $1 from
additional service fees. Gross profit decreased less than 1.0% to
$71.4 million compared to the second quarter of 2009.
“During the quarter, we effectively implemented appropriate
price increases to offset the higher costs associated with COBRA
participants, while maintaining high client retention levels,” said
Richard G. Rawson, president. “In addition, we have continued to
experience lower incident and severity rates in our workers’
compensation program reflecting success in our safety and claims
management programs.”
Operating expenses decreased 0.9% to $62.8 million compared to
the second quarter of 2009, as reductions in salary and
compensation costs and depreciation expense more than offset an
increase in marketing costs.
Year-to-Date
Results
Year-to-date revenues were $870.1 million, a 0.4% increase over
the 2009 period. Gross profit for the six months ended June 30,
2010, decreased 7.4% to $144.0 million. The average gross profit
per worksite employee per month decreased 2.1% compared to the 2009
period to $230.
Year-to-date operating expenses decreased 1.7% to $131.7
million. On a per worksite employee per month basis, operating
expenses increased 3.9% over the 2009 period. As a result,
operating income for the six months ended June 30, 2010, was $12.3
million compared to $21.5 million in the 2009 period.
Working capital increased by $16.6 million during the first half
of the year to $144.3 million at June 30, 2010. During this period,
EBITDA totaled $20.3 million and the company returned $9.2 million
to shareholders, including share repurchases of $2.4 million and
dividends of $6.8 million. Additionally, the company received a
scheduled return of $15.6 million in excess funding from its
workers’ compensation program during the second quarter of
2010.
“Working capital increased significantly during the quarter on
strong cash flow and the receipt of the expected reimbursement from
our workers’ compensation program,” said Douglas S. Sharp, senior
vice-president of finance, chief financial officer and treasurer.
“Our strong balance sheet and liquidity have allowed us to close on
acquisition opportunities and pursue our adjacent business
strategy, while continuing to invest in the growth of our core PEO
offering.”
Administaff will be hosting a conference call today at 10 a.m.
ET to discuss these results, give guidance for the third quarter
and full year 2010 and answer questions from investment analysts.
To listen in, call 877-651-0053 and use conference i.d. number
87566940. The call will also be webcast at
http://www.administaff.com. To access the webcast, click on the
Investor Relations section of the website and select “Live
Webcast.” The conference call script and company guidance will be
available at the same website later today. A replay of the
conference call will be available at 800-642-1687, conference i.d.
87566940, for one week. The webcast will be archived for one
year.
Administaff is the nation’s leading professional employer
organization (PEO), serving as a full-service human resources
department that provides small and medium-sized businesses with
administrative relief, big-company benefits, reduced liabilities
and a systematic way to improve productivity. The company operates
51 sales offices in 24 major markets. For additional information,
visit Administaff’s website at http://www.administaff.com.
The statements contained herein that are not historical facts
are forward-looking statements within the meaning of the federal
securities laws (Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934). You can
identify such forward-looking statements by the words “expects,”
“intends,” “plans,” “projects,” “believes,” “estimates,” “likely,”
“possibly,” “probably,” “goal,” “objective,” “target,” “assume,”
“outlook,” “guidance,” “predicts,” “appears,” “indicator” and
similar expressions. Forward-looking statements involve a number of
risks and uncertainties. In the normal course of business,
Administaff, Inc., in an effort to help keep our stockholders and
the public informed about our operations, may from time to time
issue such forward-looking statements, either orally or in writing.
Generally, these statements relate to business plans or strategies,
projected or anticipated benefits or other consequences of such
plans or strategies, or projections involving anticipated revenues,
earnings, unit growth, profit per worksite employee, pricing,
operating expenses or other aspects of operating results. We base
the forward-looking statements on our expectations, estimates and
projections at the time such statements are made. These statements
are not guarantees of future performance and involve risks and
uncertainties that we cannot predict. In addition, we have based
many of these forward-looking statements on assumptions about
future events that may prove to be inaccurate. Therefore, the
actual results of the future events described in such
forward-looking statements could differ materially from those
stated in such forward-looking statements. Among the factors that
could cause actual results to differ materially are: (i) changes in
general economic conditions; (ii) regulatory and tax developments
and possible adverse application of various federal, state and
local regulations; (iii) the ability to secure competitive
replacement contracts for health insurance and workers’
compensation contracts at expiration of current contracts; (iv)
increases in health insurance costs and workers’ compensation rates
and underlying claims trends, health care reform, financial
solvency of workers’ compensation carriers and other insurers,
state unemployment tax rates, liabilities for employee and client
actions or payroll-related claims; (v) failure to manage growth of
our operations and the effectiveness of our sales and marketing
efforts; (vi) changes in the competitive environment in the PEO
industry, including the entrance of new competitors and our ability
to renew or replace client companies; (vii) our liability for
worksite employee payroll and benefits costs; (viii) our liability
for disclosure of sensitive or private information; (ix) our
ability to integrate future acquisitions; and (x) an adverse final
judgment or settlement of claims against Administaff. These factors
are discussed in further detail in Administaff’s filings with the
U.S. Securities and Exchange Commission. Any of these factors, or a
combination of such factors, could materially affect the results of
our operations and whether forward-looking statements we make
ultimately prove to be accurate.
Except to the extent otherwise required by federal securities
law, we do not undertake any obligation to update our
forward-looking statements to reflect events or circumstances after
the date they are made or to reflect the occurrence of
unanticipated events.
Administaff, Inc.
Summary Financial
Information
(in thousands, except per share
amounts and statistical data)
June 30, December 31, 2010
2009 (Unaudited) Assets Cash and cash
equivalents $ 169,382 $ 227,085 Restricted cash 37,744 36,436
Marketable securities 40,949 6,037 Accounts receivable 177,042
122,592 Prepaid insurance and other current assets 30,025 20,801
Income taxes receivable 3,333 2,692 Deferred income taxes
-
2,578 Total current assets
458,475 418,221 Property and equipment, net 77,512 81,174
Deposits 57,816 67,529 Other assets
13,947
9,546 Total assets
$
607,750 $ 576,470
Liabilities and Stockholders’ Equity Accounts payable
$ 1,327 $ 1,857 Payroll taxes and other payroll deductions payable
78,103 127,597 Accrued worksite employee payroll expense 152,687
93,138 Accrued health insurance costs 10,929 6,374 Accrued workers’
compensation costs 39,073 37,049 Other accrued liabilities 29,535
24,579 Deferred income taxes
2,559
-
Total current liabilities 314,213 290,594 Accrued
workers’ compensation costs 54,474 52,014 Deferred income taxes
8,978 10,702
Total noncurrent liabilities 63,452 62,716 Stockholders’
equity: Common stock 309 309 Additional paid-in capital 136,584
138,551 Treasury stock, cost (127,498 ) (135,712 ) Accumulated
other comprehensive income 39 3 Retained earnings
220,651 220,009
Total stockholders’ equity
230,085
223,160 Total liabilities and
stockholders’ equity
$ 607,750
$ 576,470
Administaff, Inc.
Summary Financial Information
(continued)
(in thousands, except per share
amounts and statistical data)
(Unaudited)
Three months endedJune
30,
Six months endedJune
30,
2010
2009
Change
2010
2009
Change
Operating results:
Revenues (gross billings of $2.354
billion, $2.343 billion, $4.830 billion and $4.901 billion, less
worksite employee payroll cost of $1.942 billion, $1.939 billion,
$3.960 billion and $4.035 billion, respectively)
$
412,418
$
404,312
2.0
%
$
870,080
$
866,291
0.4
%
Direct costs: Payroll taxes, benefits and workers’ compensation
costs
341,061
332,345
2.6
%
726,038
710,763
2.1
%
Gross profit 71,357 71,967 (0.8 )% 144,042 155,528 (7.4 )%
Operating expenses: Salaries, wages and payroll taxes 34,505 35,644
(3.2 )% 73,692 74,296 (0.8 )% Stock-based compensation 2,410 2,911
(17.2 )% 4,178 5,697 (26.7 )% General and administrative expenses
14,634 14,228 2.9 % 32,128 32,000 0.4 % Commissions 2,818 2,896
(2.7 )% 5,605 6,169 (9.1 )% Advertising 4,698 3,439 36.6 % 8,575
7,425 15.5 % Depreciation and amortization
3,723 4,244 (12.3 )%
7,534 8,439 (10.7 )% Total
operating expenses
62,788
63,362 (0.9 )%
131,712
134,026 (1.7 )% Operating income 8,569 8,605 (0.4 )%
12,330 21,502 (42.7 )% Other income (expense): Interest income 255
345 (26.1 )% 458 917 (50.1 )% Other, net
-
13 (100.0 )%
-
20 (100.0 )% Income before income tax expense
8,824 8,963 (1.6 )% 12,788 22,439 (43.0 )% Income tax expense
3,706 3,578 3.6 %
5,371 8,888 (39.6 )% Net income
$ 5,118 $ 5,385
(5.0 )%
$ 7,417 $
13,551 (45.3 )%
Diluted net income per share of
common stock
$
0.20
$
0.22
(9.1
)%
$
0.29
$
0.54
(46.3
)%
Diluted weighted average common
shares outstanding
25,666
25,039
25,483
24,942
Administaff, Inc.
Summary Financial Information
(continued)
(in thousands, except per share
amounts and statistical data)
(Unaudited)
Three months ended Six months ended June
30, June 30,
2010
2009
Change
2010
2009
Change
Statistical data:
Average number of worksite
employees paid per month
105,359
108,551
(2.9
)%
104,184
110,147
(5.4
)%
Revenues per worksite employee per
month(1)
$
1,305
$
1,242
5.1
%
$
1,392
$
1,311
6.2
%
Gross profit per worksite employee
per month
226
221
2.3
%
230
235
(2.1
)%
Operating expenses per worksite
employee per month
199
195
2.1
%
211
203
3.9
%
Operating income per worksite employee per month
27
26
3.8
%
20
33
(39.4
)%
Net income per worksite employee
per month
16
17
(5.9
)%
12
21
(42.9
)%
(1) Gross billings of $7,450,
$7,196, $7,726 and $7,416 per worksite employee per month, less
payroll cost of $6,145, $5,954, $6,334 and $6,105 per worksite
employee per month, respectively.
Administaff, Inc.
Summary Financial Information
(continued)
(in thousands, except per share
amounts and statistical data)
(Unaudited)
GAAP to Non-GAAP Reconciliation
Tables
Three months ended Six months ended June
30, June 30,
2010
2009
Change
2010
2009
Change
Payroll cost (GAAP) $ 1,942,142 $ 1,939,150 0.2 % $
3,959,675 $ 4,034,904 (1.9 )% Less: Bonus payroll cost
91,984 101,753 (9.6 )%
321,489 317,625 1.2 % Non-bonus
payroll cost
$ 1,850,158 $
1,837,397 0.7 %
$ 3,638,186
$ 3,717,279 (2.1 )%
Payroll cost per worksite employee
(GAAP)
$
6,145
$
5,954
3.2
%
$
6,334
$
6,105
3.8
%
Less: Bonus payroll cost per
worksite employee
291
312
(6.7
)%
514
481
6.9
%
Non-bonus payroll cost per
worksite employee
$
5,854
$
5,642
3.8
%
$
5,820
$
5,624
3.5
%
Non-bonus payroll cost represents payroll cost excluding the
impact of bonus payrolls paid to the company’s worksite employees.
Bonus payroll cost varies from period to period, but has no direct
impact to the company’s ultimate workers’ compensation costs under
the current program. As a result, Administaff management refers to
non-bonus payroll cost in analyzing, reporting and forecasting the
company’s workers’ compensation costs.
Three
months ended Six months ended June 30, June
30,
2010
2009
Change
2010
2009
Change
Net income (GAAP) $ 5,118 $ 5,385 (5.0 )% $ 7,417 $ 13,551 (45.3 )%
Interest expense
-
6 (100.0 )%
-
15 (100.0 )% Income tax expense 3,706 3,578 3.6 % 5,371 8,888 (39.6
)% Depreciation and amortization
3,723
4,244 (12.3 )%
7,534
8,439 (10.7 )% EBITDA
$
12,547 $ 13,213 (5.0 )%
$ 20,322 $
30,893 (34.2 )%
EBITDA represents net income computed in accordance with
generally accepted accounting principles (“GAAP”), plus interest
expense, income tax expense, depreciation and amortization expense.
Administaff management believes EBITDA is often a useful measure of
the company’s operating performance, as it allows for additional
analysis of the company’s operating results separate from the
impact of taxes and capital and financing transactions on
earnings.
Non-bonus payroll and EBITDA are not financial measures prepared
in accordance with GAAP and may be different from similar measures
used by other companies. Non-bonus payroll and EBITDA should not be
considered as a substitute for, or superior to, measures of
financial performance prepared in accordance with GAAP. Administaff
includes non-bonus payroll and EBITDA in this press release because
the company believes they are useful to investors in allowing for
greater transparency related to the costs incurred under the
company’s workers’ compensation program and the company’s operating
performance during the periods presented. Investors are encouraged
to review the reconciliation of the non-GAAP financial measures
used in this press release to their most directly comparable GAAP
financial measures as provided in the tables above.
Administaff (NYSE:ASF)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
Administaff (NYSE:ASF)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024