INSPERITY, INC. 10-Q

Item 1A. Risk Factors Forward-Looking Statements 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 Exchange Act). You can identify such forward-looking statements by the words “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “likely,” “possibly,” “probably,” “goal,” “opportunity,” “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, in an effort to help keep our stockholders and the public informed about our operations, from time to time, we may 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, average number of worksite employees, benefits and workers’ compensation costs, or other operating results. We base the forward-looking statements on our current expectations, estimates and projections. We caution you that these statements are not guarantees of future performance and involve risks, uncertainties and assumptions 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: • adverse economic conditions; • impact of the COVID-19 pandemic, or other future pandemics, including the scope, severity and duration of the pandemic; government responses; regulatory developments; and the related disruptions and economic impact to our business and the small and medium-sized businesses that we serve; • vulnerability to regional economic factors because of our geographic market concentration; • failure to comply with covenants under our credit facility; • our liability for worksite employee payroll, payroll taxes and benefits costs; • increases in health insurance costs and workers’ compensation rates and underlying claims trends, health care reform, financial solvency of workers’ compensation carriers, other insurers or financial institutions, state unemployment tax rates, liabilities for employee and client actions or payroll-related claims; • cancellation of client contracts on short notice, or the inability to renew client contracts or attract new clients; • the ability to secure competitive replacement contracts for health insurance and workers’ compensation insurance at expiration of current contracts; • regulatory and tax developments and possible adverse application of various federal, state and local regulations; • failure to manage growth of our operations and the effectiveness of our sales and marketing efforts; • the impact of the competitive environment and other developments in the human resources services industry, including the PEO industry, on our growth and/or profitability; • an adverse final judgment or settlement of claims against Insperity; • disruptions of our information technology systems; Insperity | 2021 First Quarter Form 10-Q 32 OTHER INFORMATION • our liability or damage to our reputation relating to disclosure of sensitive or private information; • failure of third-party providers, data centers or cloud service providers; and • our ability to integrate or realize expected returns on our acquisitions. These factors are discussed in further detail in our Annual Report on Form 10-K for the year ended December 31, 2020 under “Item 1A. Risk Factors” in Part I and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, and elsewhere in this report. 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. Any forward-looking statements are made only as of the date hereof and, unless otherwise required by applicable securities laws, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.