Item 5. Market for Registrant’s Common Equity
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
Common Stock
Our common stock is traded on the New York Stock Exchange under the symbol “NSP.” As of February 4, 2021, there were 444 holders of record of our common stock. This number does not include stockholders for whom shares were held in “nominee” or “street name.”
Dividend Policy
The payment of dividends is made at the discretion of our Board and depends upon our operating results, financial condition, capital requirements, general business conditions and such other factors as our Board deems relevant.
Issuer Purchases of Equity Securities
The following table provides information about our purchases of Insperity common stock during the three months ended December 31, 2020:
Period Total Number of Shares Purchased (1)(2)
Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Program (1)
Maximum Number of Shares that may yet be Purchased under the Program (1)
10/01/2020 – 10/31/2020 — $ — — 227,833
11/01/2020 – 11/30/2020 — — — 1,227,833
12/01/2020 – 12/31/2020 100,144 81.87 99,696 1,128,137
Total 100,144 $ 81.87 99,696
__________________________________
(1) Our Board has approved a program to repurchase shares of our outstanding common stock, including an additional 1,000,000 shares authorized for repurchase in November 2020. During the three months ended December 31, 2020, 99,696 shares were repurchased under the program. As of December 31, 2020, we were authorized to repurchase an additional 1,128,137 shares under the program. Unless terminated earlier by resolution of the Board, the repurchase program will expire when we have repurchased all the shares authorized for repurchase under the repurchase program.
(2) During the three months ended December 31, 2020, 448 shares of restricted stock and restricted stock units were withheld to satisfy tax-withholding obligations arising in conjunction with the vesting of restricted stock and restricted stock units. The required withholding is calculated using the closing sales price reported by the New York Stock Exchange on the date prior to the applicable vesting date. These shares are not subject to the repurchase program described above.
Insperity 35
2020 Form 10-K
STOCK ACTIVITIES
Performance Graph
The following graph compares our cumulative total stockholder return since December 31, 2015, with the S&P Smallcap 600 Index, the S&P Midcap 400 Index and the S&P 1500 Composite Human Resources and Employment Services Index. The graph assumes that the value of the investment in our common stock and each index (including reinvestment of dividends) was $100 on December 31, 2015.
COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN*
Among Insperity, Inc., the S&P Smallcap 600 Index, the S&P Midcap 400 Index,
and S&P 1500 Composite Human Resource and Employment Services Index
*$100 invested on 12/31/15 in Insperity stock or in the specified index, including reinvestment of dividends.
Fiscal year ending December 31.
Copyright© 2021 Standard & Poor's, a division of S&P Global. All rights reserved.
12/15 12/16 12/17 12/18 12/19 12/20
Insperity, Inc. 100.00 149.55 249.18 409.17 381.54 369.50
S&P Smallcap 600 100.00 126.56 143.30 131.15 161.03 179.20
S&P Midcap 400 100.00 120.74 140.35 124.80 157.49 179.00
S&P 1500 Composite Human Resource and Employment Services 100.00 106.87 142.78 126.28 149.13 150.17
This graph shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing.
Insperity 36
2020 Form 10-K
SELECTED FINANCIAL DATA
Item 6. Selected Financial Data.
The selected consolidated financial data set forth below should be read in conjunction with the Consolidated Financial Statements and accompanying Notes and Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
(in thousands, except per share and statistical data)
Year Ended December 31,
2020 2019 2018 2017 2016
Income Statement Data:
Revenues (1)
$ 4,287,004 $ 4,314,804 $ 3,828,549 $ 3,300,223 $ 2,941,347
Gross profit
806,854 732,934 681,909 572,731 491,610
Operating income
194,689 186,633 179,036 129,941 106,306
Net income
138,237
151,099 135,413 84,402 65,991
Diluted EPS
3.54 3.70 3.22 2.01 (2)
1.54 (2)
Non-GAAP Financial Measures (3) :
Adjusted net income
$ 181,314 $ 169,449 $ 157,536 $ 103,005 $ 76,718
Adjusted EPS
4.64 4.15 3.75 2.45 (2)
1.79 (2)
Adjusted EBITDA
288,620 250,006 239,601 177,681 141,183
Balance Sheet Data:
Working capital
$ 172,344 $ 105,701 $ 94,204 $ 54,206 $ 39,364
Total assets
1,584,276 1,394,996 1,191,816 1,063,695 907,174
Total debt
369,400 269,400 144,400 104,400 104,400
Total stockholders’ equity
44,132 4,079 77,676 66,321 60,525
Cash dividends per share
1.60 1.20 0.80 1.58 (2)(4)
0.49 (2)
Average WSEEs paid
234,223 235,547 209,123 182,696 165,850
Statistical Data (per WSEE per month):
Revenues (5)
$ 1,525 $ 1,527 $ 1,526 $ 1,505 $ 1,478
Gross profit
287 259 272 261 247
Operating income
69 66 71 59 53
Adjusted EBITDA (3)
103 88 95 81 71
____________________________________
(1) Revenues are comprised of gross billings less WSEE payroll costs as follows:
Year Ended December 31,
(in thousands)
2020 2019 2018 2017 2016
Gross billings
$ 28,168,611 $ 27,212,010 $ 23,830,731 $ 20,173,812 $ 17,932,857
Less: WSEE payroll cost
23,881,607 22,897,206 20,002,182 16,873,589 14,991,510
Revenues
$ 4,287,004 $ 4,314,804 $ 3,828,549 $ 3,300,223 $ 2,941,347
(2) Adjusted to reflect the two-for-one split of our common stock effected on December 18, 2017 as a stock dividend.
(3) These are non-GAAP measures used by management to analyze Insperity’s performance. Please read Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures” for a reconciliation of the non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP.
(4) Includes a $1.00 per share special dividend paid in 2017.
(5) Revenues per WSEE per month are comprised of gross billings per WSEE per month less WSEE payroll costs per WSEE per month as follows:
Insperity 37
2020 Form 10-K
SELECTED FINANCIAL DATA
Year Ended December 31,
(per WSEE per month) 2020 2019 2018 2017 2016
Gross billings $ 10,022 $ 9,627 $ 9,496 $ 9,202 $ 9,011
Less: WSEE payroll cost
8,497 8,100 7,970 7,697 7,533
Revenues $ 1,525 $ 1,527 $ 1,526 $ 1,505 $ 1,478
Insperity 38
2020 Form 10-K
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS