Insperity Declares Special Dividend of $2 per Share
December 01 2014 - 8:30AM
Business Wire
Insperity, Inc. (NYSE:NSP), a leading provider of human
resources and business performance solutions for America’s best
businesses, today announced that its board of directors has
declared a special cash dividend of $2 per share. The dividend will
be paid on Dec. 26, 2014 to all stockholders of record as of Dec.
15, 2014.
“The authorization of this special dividend by our Board
reflects our continued commitment to building stockholder value
through the execution of our strategic plan and disciplined capital
allocation strategy,” said Paul J. Sarvadi, Insperity chairman and
chief executive officer. “With strong cash flows and a solid
balance sheet that included working capital of $119 million and no
debt at Sept. 30, 2014, we are pleased to return an additional $51
million to stockholders while continuing to invest in the business
and execute our long-term growth strategy.”
The special dividend is in addition to the regular quarterly
dividend of $0.19 per share previously announced on Nov. 14, 2014.
The board of directors has authorized six increases to the regular
dividend program since its beginning in 2005 at a quarterly rate of
$0.07 per share. The company previously paid a special dividend of
$1 per share in Dec. 2012.
“With this special dividend, Insperity will have returned a
total of $90 million to stockholders in 2014 in the form of
dividends and stock repurchases,” said Douglas S. Sharp, Insperity
senior vice-president of finance, chief financial officer and
treasurer. “Even with these substantial returns, our balance sheet
remains strong and we continue to have up to $100 million available
under our existing credit facility. Insperity has a consistent
track record of generating strong cash flows through our
operations, which we expect to continue in 2015 and beyond.”
In addition to its regular and special dividends, the company
has repurchased 1.9 million shares at a cost of $55 million since
2012, including 693,000 shares in the nine months ended Sept. 30,
2014. The company has conducted ongoing share repurchases in the
open market, and Insperity, Inc. periodically evaluates the size
and structure of its repurchases, as demonstrated by its offer to
repurchase shares through a $50 million modified “Dutch auction”
tender offer that it conducted in the fourth quarter of 2012.
Insperity, a trusted advisor to America’s best businesses for
more than 28 years, provides an array of human resources and
business solutions designed to help improve business performance.
Insperity® Business Performance Advisors offer the most
comprehensive suite of products and services available in the
marketplace. Insperity delivers administrative relief, better
benefits, reduced liabilities and a systematic way to improve
productivity through its premier Workforce Optimization® solution.
Additional company offerings include Human Capital Management,
Payroll Services, Time and Attendance, Performance Management,
Organizational Planning, Recruiting Services, Employment Screening,
Financial Services, Expense Management, Retirement Services and
Insurance Services. Insperity business performance solutions
support more than 100,000 businesses with over 2 million employees.
With 2013 revenues of $2.3 billion, Insperity operates in 57
offices throughout the United States. For more information,
visit http://www.insperity.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,” “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, Insperity, 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 future
dividends and stock repurchases, business plans or strategies,
projected or 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) adverse
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, other insurers or financial institutions,
state and federal 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, payroll taxes and benefits costs;
(viii) our liability for disclosure of sensitive or private
information; (ix) our ability to integrate or realize expected
returns on our acquisitions; (x) failure of our information
technology systems; and (xi) an adverse final judgment or
settlement of claims against Insperity. These factors are discussed
in further detail in Insperity’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.
Insperity, Inc.Investor Relations Contact:Douglas S.
Sharp, 281-348-3232Senior Vice President of Finance,Chief Financial
Officer and TreasurerorNews Media Contact:Jason Cutbirth,
281-312-3085Senior Vice President of
Marketingjason.cutbirth@insperity.com
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