NSP - Earnings call transcript Q2 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. My name is Lei, and I will be your conference operator today. I would like to welcome everyone to the Insperity’s Second Quarter 2018 Conference Call. [Operator Instructions]. At this time, I would like to introduce today's speakers.

Sarvadi, Douglas the of Sharp, Financial and Paul Executive and Finance, are Officer and Officer; Senior Treasurer. us Chairman Board of Chief Chief Joining Vice President over like turn would I time, Sharp. this the At call to Douglas to Mr. please Sharp, ahead. go

Douglas Sharp

us you Thank morning. joining We this you. appreciate

by plan me morning's for call. begin Let this outlining our

for will the the QX the on key to I behind our to guidance. First, our XXXX to financial quarter comment I'm discuss provide going of XXXX full the third guidance then second and the our will return for plans results year behind update year. quarter details financial remainder results. Paul our an and drivers the

a will session. end call We then with question-and-answer the

myself may forward-looking today's we subject risks, which during begin, to make are would call, before and remind I or assumptions. you uncertainties to statements Now, Sarvadi, like that Mr.

include In financial addition, non-GAAP measures. discussion of our some may

more For which financial public to the of on that results and risks actual XK filings, and a of cause website. statements our from available detailed could today, the filed Company's discussion forward-looking Form please see reconciliations materially uncertainties differ are including the any measures, non-GAAP

growth in record our operating let's again were by $XX.X operating costs. of the of once effective These quarter results increase increase of XX%. and achieved employee QX a management EPS, continued Now, results results, driven and discuss reporting we second strong adjusted EBITDA XX% behind details gross double-digit $X.XX profit over adjusted XXXX, high over million, in worksite an

high-end QX’s XX%. forecasted and average employees above of paid to increased our worksite XX% for range the QX As XXXX a of growth the over XXX,XXX accelerating off of details some of

and of net continued a high-level improvement by clients. was strong driven our by client This quarter’s in growth hiring sales, retention

client over basis to declining direct cost for operating gross increase this worksite historical adjusted Client of an on $XXX is month XXXX with per during XX% in Gross As including for prior in QX core totaled have driven QX XXXX XX% on year Advisors in per the mid-market of from development This from XX% growth in and XXXX performance is advisors reflective segment. over hiring QX of increased growth, the XX%, in to our we employee pricing drive efforts, are successful per of for hiring investments month of XXXX retention consistent of recent growth in of reflected goal profit $XXX of been our and sales worksite our a other highs worksite our $XXX we activity segment the and areas. the year. XXXX. our Business exceeding leverage of business. employee QX in hit the the QX while management Performance experienced in sales in personnel QX areas to XX% to This of year XXXX. QX the XX% improved in technology we business and planned employee the was and effective profit increased the service by in over increased track in $XXX to expenses of full and of quarter our

effective to Our continue year expect we a in QX XX% of at of and rate rate our forecasted tax rate in XX%. full came

to demonstrated half $XXX $X.XX bottom in to EPS increase This off year coming significant results adjusted QX through EBITDA is in these growth resulted year. strong a by XX% line of Now of increase XX% the million. a the to first the has in start and the adjusted

$XXX period. EBITDA our adjusted per in in XXXX XXXX per unit the increased $XX profitability of employee Additionally, XX% measure to worksite month, from period the

flow cash have under of quarter $XXX million $XXX cash and adjusted our sheet ended line-of-credit. available with balance the and for our As we million

cost a have we year, stock in at the and $XX cash of dividends. paid half first million the XXX,XXX of of For $XX repurchased million shares

turn Now, time call to Paul. like over to the at I'd this

Paul Sarvadi

importance model. we topics Doug. three will to investors discuss our as unique business Thank continue I financial to Today, you, of results produce from exceptional

highlights outperformance. QX and driving cover acceleration our earnings First, growth from I’ll

acceleration provide In of XX% both businesses. over produced the our provides QX. strategy, in to in our in model. in our XXXX. XX% the a into total clients including Recent hiring our a sold balance QX of execution performance sold mid-market is coming of client fuel in business Business very in impressive our growth and insight a XXX% continued for in optimize base quarter, and initiatives three And trained I'll unit which increase Advisors XX% our I'll sales been drivers core Second, of increase contributed XXXX sales successful sales mid-market service in retention second third, strong designed several to some sales, All have to employee of describe second results worksite our further in opportunity our Performance XXXX. and budget. our This growth increase quarter an at total and row a

sales first our by our second the client outperformance, The largest was team by our the in primarily history approximately with mid-market driven employees. including and quarter core XX,XXX quarter of sale

Performance a during effect Over the core to by XX%. our actually period our year, is has growing organization. this trained gain efficiency have growth X% to XX% entire our we ramp-up Advisors improved and rate training team a sales quite driven year-over-year in from this rate mid-market the Increasing while success. efficiency, and approximately the the up number BPA Sales team leadership sales sales credit past ramped of Business of in at recent the sales XX%

Our In insperity.com strong were up our successful QX, sales site these to XX%. to programs results. visitors support unique continued marketing

and were provided up up our performance XX% period the to last XX% advisors Social over same media, leads business followers year.

this Now traditional Business which in strides Performance great in addition new success recently our Acceleration. channel bundle, our validating Workforce our to business, rebranded co-employment Advisor employment made we tremendous

a Workforce price XX% point than XX% This increased previous the at quarter of version. new this offering comprehensive sales higher service Administration

with and level QX highs of X.XX% month. marketplace. historical in through only our results differentiates per was depth breadth, service Our delivering attrition the at is the continuing care These demonstrate that team the Insperity also in value averaging client retention highlighted

employees like base We Average market. commissions were also sales momentum paid ago labor and last QX for In activity economic sized period demand of all compensation quarter, this employees for was so The compensation same indicate same and business indicators among one to strong. three employees the of and have historically our very since this, keeping increased a evidence demand X.X%. clients dynamic period our small-to-medium marketplace. is substantial. is for of competitive In services in as employees experienced the pay advantage supply key strong exceeded strong the year infrastructure for the employees. year. our benefits in employers pay over in percentage the recent These increased driving substantial regular a a saw for provides our in we Overtime a strong limited, strong our XX% support attracting XX% and strong of over competition the in client paid is worksite numbers demand market but up HR

is a pipeline poised of range the strong the our high-end XX.X% of from of So, three the sales significant very are unit growth XX.X% unit The over year. range and to and above was mid-market contributing, QX. for balance both our our we acceleration with our to of for core drivers growth all growth

variance the positive and this been In driven lower addition our earnings higher to operating by have quarter, gross was volume outperformance expenses profit budgeted.

management continue pricing direct effective to see benefit and profit the of costs. gross We at line from

claims particularly in had program. strong relative has Our Safety to year a workers’ Group our Services compensation lower drive far severity helping and of so frequency

We BPAs, and spite also our significant adding under service in personnel see management extending continue technology budget, investments our leadership. the expense of are effective we coming growing making to operating in in

I XXX thousand selling serving topic, second growth to important adds The to today employees. This our our clients a rate. very market discuss is several mid-market because is doubles employees success segment our these with up want premium and clients with and adjustable strategy, to

had we segment. success years, a we this clients small penalty many as grow For into help

larger HR This of that. back a accounts in-house. relationship However, many and drag was terminated a on Insperity to we more replace ultimately growth our sell number the with rate, to needed BPAs small taking

well success that the possibility to next as we’ve achieve seeing a months just with would a improve developed of to employees our employees say drive a X% account XX% retention Ideally lower reach to Business growth of develop potential sales step accomplished Business follows consistent drive mid-market the is which accounts. to growth reaching consistently cost be in been model growth for a and worksite acquisition allowed of progress sell this segment and just attract Over into unit drive are maintain to is is cost We're range with a within worksite strong rate. at our XX% these larger we addition client milestone sales as Advisors comparable our recent Historically, a bodes step and Performance in to our important to pursuit the Both The unit in with retention The our of that larger rate the this maybe of of paid rate XX in a rate rate our model. our the service glimpse pleased number a service years, number account also reason future. it months. capability to progress XX% so Advisors. a segment. paid objectives this about growth. developed growth rate next unit If would and without premium in mid-market The customized continue to The rate potential our mid-market, to within growth few objective closing to growth methodology in possible Advisors Performance the sales our is sell faster to higher model of mid-market a achieve sales this Business rate The of a the business we to the highly largest has Business five rate of to Performance predictable pipeline us accounts. and area. is improve XX in and core we was growth business growth for have worthy and XX%, lower achieved rate profitable turn XX% last Advisors number efficiency a to the providing growth improve and the that of in a have growing recently Performance these a in fast. to these

and Our ability with entire requires roll that and complexity service These significant combined these sell a competitive with size. larger relationship large our across this Software-as-a-Service client advantage with and in to a collaboration for our accounts a in significant serve this customize segment. Insperity provides our come platform unique order accounts organization to coordination

an leverage team demonstrated job important future Our and we an growth opportunity. capability, did outstanding can substantial a into

model today establish and We this this for the up this on place set effort over some a balance organization. we service on serve are strong topic opportunity. will X,XXX market year to the the is using last capitalize service to team to an for momentum to mid-market to provide in This our model The have within our employees largest color from accounts with of develop enterprise continued initiatives XXXX.

to is over the to to our extending profitability run organization. of growth several continue growth intend in continue years. and last we've We goal the the Our double-digit sales impressive had invest

XX% achieve add balance our BPAs over for to rate us to in growth year of this year. to to the expect We targeted metric XX% the next position

also personnel to of our due growth segment. to had confidence the in mid-market recent results and in this We we've future the invest service expect level

to the of of our encourage our two incorporate is to sales channel during plan balance campaign of expectation our the for achieving the Another addition the to fall additional aspect priorities target. in BPA year

of expertise Acceleration, the of of the offering. to generally quarter, This the business provide in Workforce is Mylo, insurance are the completed ready Lockton increase is customer Workforce comprehensive for base. employment second solution insurance a to quality and our leading for employment we our traditional a high BPAs to intend bringing traditional with and Lockton, this First, solution volume an solutions we benefits to unavailable provide In Companies division target we to goal marketplace. rollout. this the now fully level sales. HR incentivize brokered with Through Acceleration consistent bundled agreement

of the added an second for pricing. year priority emphasis balance The on is new the

in the releases XXXX. created of Our for in enhancements programs no This plan design management success new technology in substantive opens the our has strength benefits accounts. opportunity renewing of with door combination pricing exciting and factor the our changes for with ongoing

are performing very really we summary, hitting on model is So all in business our cylinders and well.

acceleration and the a place in balance the have growth of are continue into to right year great growth We initiatives XXXX. we double-digit the in for over position

row XXXX be fourth adjusted guidance Our with increases will implies in a EBITDA our year over XX%.

more has tripled. than our has that period EBITDA adjusted adjusted over and EPS more Our doubled than

ways efforts the has to create dynamic pass call unique more our At growth quite proven to like I'd to improve be target Our Doug. to time, achieve model to and and profitability back to successful. business this

Douglas Sharp

Thanks Paul.

includes open the before for provide budget. I'd for year quarter up call growth Now bottom questions, and our to financial in our top above line XXXX like an third guidance to we the forecast, which update our significantly full initial

to our growth up worksite XXXX forecast due year employees strong we a in raised momentum. continuing the As of guidance XX.X%, half sales to average of This paid from XX.X% our XX.X% is first have to during mentioned, our the of Paul of just range full initial to growth XX.X%. of

QX XX.X% success are XX.X% number of sales on to our to a mid-market forecasting our in Advisors growth of accelerate efficiency area. Performance in We employee range worksite a and trained continued based Business to

are through first by outperformance and the employee growth the the We for the guidance remainder in in our based outlook of rate. XXXX improvement upon of driven worksite an earnings our year higher the increasing half

the also incremental growth remainder with BPA over costs XXXX. Our considers guidance our associated of

continued As for we worksite position growth ourselves in XXXX. double-digit employee

additional and worksite also recent personnel commissions in costs to mid-market more this tied operating sales Forecasted include service paid of the our employees. on area business higher growth

profit incremental these have fourth on with to Also respect timing, than the to of to XXXX and experienced the expected QX we the QX from our keep by impacted for which our to favorable in mind growth the period, compensation declines to the more are gross QX. the implied healthcare as per year-over-year impact met earnings healthcare guidance, investments forecasted an typically As earnings And quarter deductibles worksite XXXX claims. plan employee QX QX are is comparison workers' in participants. that

now of of year an million, our we're over and to in range XX% up full forecasting $XX million $XXX So budget. adjusted approximately over XXXX a EBITDA million $XXX to XX% XXXX increase

we an over to increase XXXX. As XX% $XX million, of XX% are EBITDA forecasting for million of $XX of adjusted QX QX to

We forecasting to $X.XX, QX XX% we an in are are now $X.XX, growth our encouraged $X.XX increase adjusted EPS XXXX a is the in $X.XX prior projected over we growth XXXX. adjusted position strong range EPS for XX% top QX to for a bottom the year conclusion, XX% of year. of of full over and of by to to XX% In as XXXX. trends line plan and our business continued increase

questions. time, Now I’d the call open at to for up like this

Operator

question Instructions] first Macdonald, [Operator Our of Jim the comes line First Analysis. from

Macdonald, line First ask Your question. Please is Jim open. Analysis. your

ask your Your open. Please line question. is

Jim Macdonald

Can you hear me?

Paul Sarvadi

Yes, we can.

Douglas Sharp

can. we Now

Jim Macdonald

Okay, sorry I okay. that know but don’t was what about that.

Paul Sarvadi

problem. No

Jim Macdonald

that number. is somewhat to get to third like your to So questions I acceleration in a quarter the unusual. I’d had of try number growth

you mid-market on at a you're is year, additional So to hiring hiring new going board, could accounts, this little maybe the that? like more summer client any tell come on existing things us expecting when

Douglas Sharp

the numbers summer your side. you in last already lot into The business the But our July But number a outperformance the and ago. those September ahead the sales when is the already The core hiring away year total in sales large in of have that's year side the you enrolled come go over so month both XX% beyond in. paid and have on in driven in already that of mid-market and of of by of customers acceleration the a kind period. half part seasonality the course, growth the late time of August, the

paid that full going also strong. numbers for pipeline those mid-market Your employee numbers roll both are pipeline to going The quarter and into to is worksite so. be looks over next or very and core

So we're that moving. to momentum keep in a position

Paul Sarvadi

restart longer payroll be Jim, little is out, I year. factor boost having bit able a think, helps with you us of to a know, SBEA, the no of passage throughout sell other the to the taxes give and that as

Jim Macdonald

the accounts, of in seasonal hiring give us anything of like existing or that? you hiring and/or any sort metrics is employees thousands Can

Paul Sarvadi

The But of pretty what but slightly kind the fill high our the budgeted to above demand it's seeing expectation existing was is some. hiring we're out there is within we positions. hard the in

could from the keeping of they'd the amount finding In the within of But them employees. we the is exactly faster. see be would client net and difficulty words, the gain not recruiting adding what find So operation, faster, with other up I they base, attracting metrics if us. other best and in our think even lining people tell

good competitive fast to. one as it that they that way a customers environment, we is affect employees But So that adding us really would us. does trouble for believe like is thing have as

Jim Macdonald

the And operation a in just that on-site, on little enterprise or new interested over be very anything could – a one for HR stuff like you services your more we'd us customers, responsibilities large taking doing that? more about tell

Paul Sarvadi

model, we enterprise agility can that lot kind certainly And up serve to those – incredible Yes, worksite to both a a to of And of them to that we our complexity flexibility serve employees customized also up collaborative amount as to lot well. and a up what reporting program those in include design a co-employee client. of they service an of but employees normally that want there's serve clients. incorporating effort things that to that that or to specific fits lot have have of

that they at were at very that fact people high make place sitting have helping and So effective leadership sure of the involve employees most it in is strategy level, the with possible. could organization table in speaking generally the a on-site, to involved just

Jim Macdonald

Great. Thanks.

Operator

you. Thank

the from from comes Mark Baird. question of line next Marcon Our

line Your is open.

Mark Marcon

if a comment about on talk acceptance could I was the be bit the question. how that terms traditionally of quarter. and wondering outside disparities states. my taking of regional little PEO of of might Congratulations the would strong strong seeing you sort any for Thanks in you more you concept

Paul Sarvadi

we particular across Mark, to Yes, that of in country terms see or any – any the seeing region the just of spot weak have really the tell results would I right you we’ve now, I are don't board. driver. a

law couple execution just in lot I the was in really we're think that the demand. strong it's passed there PEO that once a do in I of service a we’ve now – So that got out place. believe years ago general,

look see in it's think code. community the now can and advisor the I

don't you So problem kind that or run into of question.

around investor a there's venture obviously certainty to more community as I equity way important lower companies. like successful mid-sized just organization, or this way a think of to saying, – seeing very the a lot more So as risk, in even private run the this not the effectively alternative community but companies advisor lot firms, a and and we're your make approach that's more capital to small investors also

we're been you to before. I different if acceptance at yes, stage a so say overall, and want And think we've at definitely

Mark Marcon

the a up the things at you How in lay – is you perspective? stack How of map merging out were it characterize thinking Texas penetration looking somebody would if you for are I of a mature. Great. more like more about are from penetration Florida mean how obviously, states some long-term, the country, and would

Paul Sarvadi

amazes business it as It is these after me open Greenfield, that all today. so Yes. is in years the

XX probably or now expanding XX We open we’ll rapidly, are offices. another

within as does addressable year, over mid-sized for You to but employees. small plenty each strongest number is now aspect next additional to market just with of well, couple also places next us of plenty the go, really There's have another we huge. that the a the have still or markets. room mid-market saw our years. XX just of offices XX of double worksite a even couple And for And our working it's and companies recently

Mark Marcon

PEO was client a they competitive were using talk ever little that already a largest signed, you regards with were that service? more or about Can new bit to brand they win like to the a that you've

Paul Sarvadi

they years because a completely growing does that good And they to and other interesting one was recently that's in a ago. be and early kind saw PEO. started, many ago their in our another very even us companies a client an they different – to put just terms But years did strategy clearly is factor. their guess of a I grow move capability of they from growth, of And for ours, were for in platform pretty services many position acquisition it it a most platform a they that many, interesting I think also pretty already when did This being that come size.

Mark Marcon

margin clients, sized company? just on profile to mix does small And great. the and how That's that the compared larger the

Paul Sarvadi

be the is we've to interesting, the talked those a obviously about similar companies. gross profit operating the such of before the you've its these that business large Yes, companies across that income larger on because spreading group lower But rest can of people.

do monitoring as be feel and obviously the to gross per our how see be we that really room are some our we good EBITDA think accounts. worksite monitoring you've industry. that, of to have running. with keep can continues that And in numbers But have And that unprecedented we'll So impressive, at strengthen size work operating these now got line. about we to kind profit to cost employee adjusted you issue for those and you a mix managing

Mark Marcon

back Congrats. the in queue. jump I’ll

Operator

Thank you.

of from Our from next question Baker line the Raymond comes James. Michael

Your line ask Please is question. your open.

Michael Baker

least give and relative upfront maybe brought as just improved it to is, Can a well? that all how them, you learnings question of the around segment some like it took long done you bring first this us on sense sense clients sounds on give it and that's long Yes, more in et you’ve you effectively. efficiently speak past Can mid-market was to how you how used us based Paul cetera. these cost and one at about a lot on

Paul Sarvadi

this process, the it's so before particular The highly the couple of that route. But keeps The can a it you'll we at I’ll the can tell length pivotal be one exciting years of Sure. make have are it's relationship you're I able technology think integrate row way personnel progress. it really demonstration make how We're takes bring with force, way dramatic fact these and return winning for opens supports customer kind we step another did of it's bigger the team on the is the a help sometimes so is to people having really effect much prospect, Premier experience pipeline service a the take a it. a with we technologies years forward. the they'll The bring in make I've our accounts plan transition in And the the our and with But process. really dam and way we the this accounts process, to collaborative long thing for these seen the it a really take such company a such in big to that our customer. customers you terms because on. refined, smooth that's we the to a is aspect moving. technology. unique the the also one process investment size them Insperity And to this much more process is time really There professional in investment, two this ever evaluate a go run have than now the is time. and

of companies spread these all So kind we a they over they're can, they – of how out the and work country. how can can lot see together be

deal, from place. corporate there not in over fact office big is offices HR all And, remote a are have because their are their people there, people the our So we out having function over. all

deal So, can even that. there's people if go an and need out onsite our with

that what but front is I create to of thing a this this significant us space So, our most fits say out this put need. service doing there customize that model around would the lot customer are we're aspects in really and ability

Michael Baker

And, off. a do And possibility would that with like retaining with – have indicated that their the what would is, so different Are you. to then a that customer core towards you'll looking are other happen system? they healthcare own, better there of would services traditionally initiative mid-market care a to are kind in or And them convert larger your that what obviously that a are health of PEO. no the Do – of previous, longer changes, call can to suite somebody new still you is you this other words some like what services roll we believe that they have they're they traditional off offering. and not of and doing roll PEO different remain customer, you're a those doing on used

Paul Sarvadi

that. we have a mix Yeah, of will

benefit substantial. the the on Premier mid-market And Insperity change both into our service have Workforce is Acceleration customers on that we may model I enterprise plan lots PEO want are those are available model platforms, larger of how the right do alternative platforms. service flexibility flexibility room Some this we the is in you your kind have have model, designed will and really really traditional have. customer. But I us for our solution. And some do traditional our Workforce that we say the more how client is we what group. within is our for they about organize serve which On Acceleration – the of having model – that. don't the which but a do to also employment solutions, co-employment we in that some pick-up decide leave to to we and which they nice moving on differently for mid-market can customers But provide. bet model, question for PEO we is that lot do our

it systems a would it's than be side So the on there's, difference side there more will. on if people would you that the be

Michael Baker

the around payroll terms one you able tax and how in just year you'd question, et thanks a of terms to of then change sell in last for through us the that cetera. gave heads-up And be

quarterly you forward, sense on your us on think for better you obviously to have we yet unit historically we the look as a how been As look season, should basis future. give enough learned about dependency to a selling has the fall growth

Paul Sarvadi

early that a what we're basically much little but the developed on the should always as running that we a fall. is year-end. campaign and of spring, of It's done be pretty selling have kind have is will because three we say And, dependent so campaigns, I for a lot that summer,

will and we always have around renewing many accounts accounts we because renew be to new that some year-end. so on do that Now degree

I it in be to we've while really several mean So, had evens is this as the transition row strong. particular before season, where look now a our look years entirely. out But, a kind I fall to forward year-end will that of really you back

our through One my season. that in changes, just design flat been, managing is year to to management and for always don't pricing I changes. been that mean, any to justified changes. our when easier, price any how plan bodes we have things, explain the the go of programs And we substantive changes have very don't those well has effective around this renewal have see do our benefit I actually prepared and it's be would And, cost. of remarks need mentioned the

it makes renewal simpler a for just So season.

sales half both as in So, and this of good the we year, retention and a I on would think position side. go last the we're really into

Michael Baker

the Thanks update. for

Operator

Partners. next question Capital your And Jeff Roth line from you. Martin of from the comes Thank

line Your is open.

Jeff Martin

Thanks, guys. good morning

Paul Sarvadi

Jeff morning. good Hi,

Jeff Martin

is I timing the course on in You new mid-market but Is ramping large the may the client. didn't the it it of quarter. of this What’s it. role have numbers, this up in stated already over already this catch

missed if I that. Sorry,

Paul Sarvadi

start already enroll that this no the customer quarter, sorry at has the did second excuse No, in Oh, me. and third quarter. of problem numbers

Jeff Martin

that XXXX, increase you cost you've year-over-year no design several X% is rolling with direct is mean there and flattish of changes the does years. last pricing when be kind Great, into in-line the basically side in your that then benefits, will or on say seen plan that specifically

Paul Sarvadi

to We’ll the that continue go pricing cost use position with to manage what of that don't enough to are year manage to or trend we time. increasing to there's or And can we're cost increase. seeing in of year. we're plan over But need the seeing whatever. this deductibles some the use move change other plan. trend just increase really for you by pharmacy this in we're And trend tool passing tools, in-line price design changing some reason modest related no we're Those or simply trend by offset the is the making in that the try up co-insurance that that by is, some comfortable, we through a

Jeff Martin

market Okay, design that and then looks XXXX. plan in what. a see the underlying indication changes you insurance place broader do have the whether providers any having like you In

Paul Sarvadi

to generally forward from trend. our and our X% world, in large trend the within In benefit type typically forth hearing so our that Well provided particular at are going we've X% marketplace we carriers numbers.

second we we so a I think a good Not thinking. this at maybe still good looked really were halfway number. first to for X.X% year, year than the had but we average on through on and X.X% quarter that better

side. pricing design to So, manage just And in the we're the for and kind puts to looking those position look us probably to plan at X.X the year the have a changes. of balance more closer not that of

Paul Sarvadi

and rate very Okay, stage a that what around the the is give of little market kind of initiative, on that. uptake more you service core the recent unbundling could was the kind of to early there but detail a impact then any

Paul Sarvadi

model? Are Acceleration, the we Workforce about talking traditional the employment

Jeff Martin

is No, If we and yeah. the talking about then unbundling are the version. that one same,

Paul Sarvadi

with remarks in this progress down where I mentioned Acceleration see point. Acceleration. that, XX% had in the pedal recently and can we've what strong that, fall higher that's channel about in the push of bundled really to to so we how the in customers pretty – much Workforce brokered our our we in new historical going bring end-up. solution that in And, And replicate And our our we're at Yeah, a have most we Optimization Workforce price offering the now going employment we that that had sales we BPA benefit good is fall our alongside, And, in traditional now side increase call that's here solution. the that business many XX% handle in co-employment towards place growth the Workforce really volume, that in solution. to we're initiative with – solutions my to

Jeff Martin

for thanks my question taking guys. helpful very Great,

Paul Sarvadi

bet. You

Operator

a Mark from We Instructions] you. Baird. Marcon, Thank have follow-up question [Operator

open. is Your line

Mark Marcon

programs profit comp color worksite was just benefit. Hi, wondering, per sounds of providing can more the workers' the quarter. little dig wondering terms the of safety a could if we like employee. I I was terms are gross give in where if It you from of a some in in came

Paul Sarvadi

Yeah, X, XX. program September our October the through I Comp workers from think, of just remember starts in a the general sense, set when year you year for kind

policy services seen of really have has in that we've and And than years policy effective we're good And out terms claims. pretty far and period. into years team so others year's some you in there. safety this been numbers period our better severity of now, frequency some And

come obviously the that some that lower, than comp till you way we our that if see and we've, So, budget when continue emerges to our be throughout we to workers' the we historical in had they year is for an expected on we the role We start lower claim that out. in manage at come in level year. cost we through and year. that And wait have expect before and the balance so target of original that

Mark Marcon

the and should through fair we sounds of can of nicely that like pay. continue as continue should a those It in that think years. that’s assessment. trends and coming – into coming percentage Is Okay, direct

Paul Sarvadi

collar old I think mind customer so. in Keep is blue. more than our base white

Mark Marcon

sure. Oh,

Paul Sarvadi

you number come a payroll anyway, big And X.X% our pretty out If And lower and at dollars. budget. a both target that center cost safety then payment we manage objective to side the claim and manage is. Ours say trying what those are low there. we're but make X%. have the there is out in and a original that below in of kind come than We that's fluctuation to of as side actual percent X.X% it

Mark Marcon

side then growth health terms health of was and in Great, the what the on expenses. the plan

Douglas Sharp

of to we over course expected Yeah, are the year. trend the

we closer come more to like, to in looks X.X% we're going started I a expectation the and about think with X.X% year to X.X%.

Mark Marcon

And Isn’t a perspective retention changes. then plan there of that no should be some design correct. terms positive from in implications

Paul Sarvadi

put us that year-end the mean that I that a client in retention the Absolutely, to had position over years. really last few through strong we've continue does

Mark Marcon

Terrific. Congrats.

Paul Sarvadi

Thank you

Operator

I the over remarks. call turn to That question. closing now will the last Sarvadi Mr. will our for be

Paul Sarvadi

today. we to we again, types hopefully And again Once these the And forward of results. see to delivering everyone Thank quarter. we'll you you continue strong appreciate our look see participating next call in you out road. on

Operator

This today's conference concludes call.

may disconnect. You now

Insperity (NSP) 1 Aug 182018 Q2 Earnings call transcript