NSP - Earnings call transcript Q3 2020

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Operator

Good morning. My name is Lera [ph], and I'll be your conference operator today. I would like to welcome everyone to the Insperity Third Quarter 2020 Earnings Conference Call. At this time, all participants’ lines are in a listen-only mode. After the speaker's remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator I to time, today's would this introduce like speakers. At

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

Douglas Sharp

appreciate joining us. Thank you you. We

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

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

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

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

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

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

and of EBITDA structure share, our outperformance in our of about programs million, quarter $XX and reflect our per and over discuss in these uncertain upside ongoing XX% business a achieved pricing These and of the earnings by results the increase. challenging third management adjusted increase environment brought adjusted let's to of and $X.XX and worksite cost relative Now pandemic expectations growth the dynamics programs. employee in which direct a this in we in results QX XX% XXXX;

our high-end XXXX which our by QX above QX the to for paid sequentially XXX,XXX, period employees range. number was the over expected X.X% of average metric, of of worksite increased growth As the in

employees recall outset X% Now the client and hired May worksite low have in outpaced in as year. further then, drove pandemic may by from in to since And the employee that layoffs the our base work have returning sequentially worksite layoffs. employees of being grown point through this any of a you our paid in clients reduction employees March

QX Additionally, client QX to employees retention continue and client at historical added new for XX% from both level remained and of our has be sales. worksite

expect return Given these end levels by recent year. we near this to to now paid positive pre-pandemic employees trends, the worksite of

to and over on Worksite increased and QX targeted our programs employee X% compensation benefit profit. with levels, upside XXXX. gross which gross Now profit, by significantly higher in let's than workers' expected in of volume move pricing resulted above combined

activity the quarter highly period claim of some from odors. This favorable a unusual QX to costs impact of shutdown the has development benefit included due

In in our although third healthcare not toward began to of quarter, addition, utilization the degree trending more expectations. normalized the levels

resumption and and Going expect care which with the forward, extent along testing deferred further COVID-XX and of still is the of treatment timing we some normalization costs, uncertain.

periods the severity over perform impact claims well impact favorable favorably work-from-home many clients pandemic. compensation management develops experience practices costs the Recent time. this of been claims. likely reduction and associated our of claims to development from due and our continues program to as and the Any favorable would with workers' future employees with status compensation primarily worker's Our of to prior associated ongoing claim of periods in has safety

the targets we budgeted toward the our service entered clients a pandemic, charge of these outset manage to set with continue HR and and for comprehensive pricing, fee our services of inclusive XXXX our We direct pricing targets. cost we As programs. certain to prior

our disruption passed our QX vendors caused may in in fee savings you along certain reflected our the as negotiated form financials. to from the service a with and of credit, recall, the comprehensive were were resulting As by clients pandemic

operating as was Cost Now within corporate our through trained XX% Performance in turning remained average past face current effectiveness QX impacted to environment. in increase of to the expenses. travel, employee our service growth, number and including continued HR business, increased G&A including we associated compensation increase the in Other costs of Business increased three stock-based expenses been due have in demands operating QX other the headcount Advisors. by over the included effort business investment other The costs. savings of from client year-over-year of our has total quarters XX% areas of level expenses with base. costs, the training realized a the in and manage staff operating

Now, this few a by items. increase was driven

our First, level and the of in paid earnings during employees pandemic. the outperformance worksite

in a further Second, to our XXXX cash waiting the to shift the align times. stock awards challenging interests performance for from awards with shareholders these performance during employees'

meeting for based were our requirements excluding under compensation and to depreciation comparison QX which performance expenses, employees expense increased a And compensation a recent modifications the quarter fourth, prior plan. impacted X.X% healthcare stock-based over year's XXXX. by large and Operating to of eligibility activity. to Third, of related and retirement adversely in amortization just acceleration earnings claim

as at increased during months to at paying shares December of and dividends million provide credit increased in XXXX. the under from million available $XXX has $XXX shareholders. our million million, and of in million our stock while cost repurchasing cash in returns strong through and $XXX as X.X million conditions, XXXX financial remains our September million it XX, Borrowings Now, the expenditures our million investments cash XX, manage Adjusted pandemic as $XX $XX investing nine $XX to by out a position we liquidity, facility. continue $XXX and over growth capital far remains to-date at

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

Paul Sarvadi

to in the with Thank model our this recent for will finish reacted I'll in factors provide XXXX. all how drivers outperformance some quarter. with opportunity to Today, are then joining in will the our on of comments which resulting on you, these Doug by the pandemic business guidance our topics, for I'll growth drive outlook on adjusted the starting thank today to going I ultimately discuss you our significant year. and us. the primary thoughts some comments double-digit providing implied we attain forward, EBITDA view three

drive dedicated We client to are with paid base to our from resulted pleased employees furloughed Net results. in worksite faster providers, employees the third pace. solid expectation supported gain client a The sequential employees. factors a in than of resiliency metric hiring our sales by certainly in with and contributing our at of new in expected key sooner combined our and quarter, as execution variety nice our of worksite client which occurred and rebound and exceeded our retention service growth base a within better

Doug on economic the client small continued As at mentioned, in levels pressure the environment. current retention despite historical XX%, businesses the of

enrolling booked services environment. solid our XX% demand booked sales and new quarter in the performance been sales period virtual same the In paid addition, in our demonstrating last of clients. a In since the worksite approximately pre-pandemic strong we believe selling was continued compared our XX% year, sales employees have previously execution for pandemic to third is budget, which from

our programs. this renewing the is able in affected both also strong to is new costs direct as this BPA our pandemic quarter. to highlight develop our grow We've and area to and normalized. model important exceeding been direct targets continue through and by The fees team direct of critical of Another and and the costs service and quarter of pricing matching accounts was our for costs, allocations our price benefit including

our this certified During XXX trained in period, one, we Performance three, Business Advisor programs. level virtually our and over and BPAs two

BPA for same fall trained period XX% count us selling positioning Our our year, season. over increased the last well

develop crisis. testimonial support also a of able expense our value were year. and videos and earlier responding savings HR also able the technology These some videos selling sophisticated needs our important to We compliance captured This a demonstrating this many retention we fall client for emerged hoping to to increase divert beyond quarter, function continue development emotion the were to the campaign. season that in operating to advertising we were

time which been well enterprise to platform, has mid-market by our analytics period. in people very emerging our renewal our our extending just for received are clients segment growth We and critical

strides system, proprietary analytics user tool our and and bottom new out and The more line the to continuing experienced quarter rolling behavioral for a new Premiere clients. the and pricing guide in operating to roadmaps outperformance quarter. was time efficient attendance are costs. for the our improving volume interface management and make Premier, strong that Insperity we capital to these using higher easier human contributed and third We combination elements direct of Each of lower making ideal

kept and expected our XXXX, achieving progress effectively to the unusual growth on responded profitability. we've on We've and important also have client initiatives. and long-term we meeting the experienced than many better needs making So, quickly eye in events

how effects over appears It's negative the for we within completely quarters effects positive. three ran business drive pandemic model know our model EBITDA factors our under double-digit model adjusted will pandemic these have growth worth model estimate as providing unexpected all the guidance we taking the hit, into belt can for we expect and the have moment reacted full carry in the our The well, to QX, business from obvious gamut too evaluate that not and not a XXXX. our today. that summarize on to the When during this pandemic. to did generate expected is pandemic it Now the our potential would the we has we since business we're that have

one health a costs. increase example, would health pandemic think issue For a would

hospital limit to to actually care elective as rising be the that much protect combined vaccines. associated the is hospitals with of seen cases behavioral term need of COVID we've what or have people's declined in elevated due Longer and healthcare created as treatment procedures, costs expenses capacity Healthcare short-term. may cost avoid to the However, which deferral significantly or COVID tendency possible. with

telemedicine actually the this these other care seen costs like continues. and level as some overall So, not have trend we offsets increases deferrals and increase of point

months, that worksite highlighted faster CDC is In affects level take to year. rebound. retrospect, clients The industries to our role of addition, flu to we was very we In saw the incident approximately including obvious strategy. by in client client model, advantage the was and effective lockdown specific which some a stimulus X% rebound quick advantage anticipating in which in related have base. travel, specifically business economic the form currently a a and experienced in pandemic negative one Act over the medium as client fiscal layoffs two small of in from is CARES the taken layoffs the An our spread also supported these selection months our factor most and sized by restaurants. us of substantially our of of such followed base process the steady percentage the paid the easing in reduce our Protection this of mitigating precautions of reduce of layoffs. risk-based our could the hospitality, client and on believe to played our shutdown businesses, a effects drop support four being experts, following Further, occurring a selection many and small in Paycheck in by Program fewer of shutdown are entertainment, effective affected the pandemic effect employees restrictions. COVID and the Due programs We we

due business closings client experienced have selection strategy has been the Another base. our nominal to in we surprise our client somewhat

small strategy our of and we increase this in business wide an failures. of to targeting insulation increase see significant to mid provide from best, some sized proved a the range saw businesses as factor expected no industries we across Although,

increased the HR experienced the in we pandemic was the effect landed dramatic department. from workload issues as arising Another many

remains As average workload I interactions This somewhat, XXX% quarter, interactions mentioned, diminished last and elevated. these fold increased five has increase but time the of of client doubled. length in

led side, to services. in improved from case, our In response demand On our the resulted working dedicated performed this productivity staff lockdowns to in and our increased heroically for home. flip the

is leads ongoing us effective routine activities. from home to believe Our experience working for

working of efficiency, and and suffer in forward. term. into optimal scenario productivity, However, longer innovation the coming innovation home provide A the and from going office may collaboration may hybrid

upside the costs, in our This future work-from-home -- and from Another our in to compensation rate our client benefit environment claims. periods in be across of is degree. base model workers' yet is substantial impact decrease and but some lockdowns incident reflected should to the a

We workers' now we've comprehensive range financial by could our a lower states. during efficiency the COVID-related meetings a as these of in to ours. environment, offset longer face-to-face retaining as One costs base. compensation that the success covered And me However, surprise the upside with by offering has know sales our claims efficiency complex under observation and prevailed maybe as to see we could we been is these in be considerations effectiveness An gain. some in continuing the a final service may additional virtual into term integrate clients, as conditions. mix, pandemic back client even on had sell

invaluable simply tighten were our have the services need services and Our despite continued to their belts. premium clients

better flow during ebb mean pandemic, we be likely as pandemic. the our factors dependent that a planning understanding ahead drivers these be So first, and of XXXX? upon Well, and of does factors business a means state have driving that model now on the we that will to will what look to it independent -- based the are

makes later budget Making timing and severity range or of stage degree be effects. occur than pandemic to will and sense inputs the mitigate in estimates number actions new finalize recent at of especially information. usual include a when closely the the early monitoring of We to these of its the little possibilities, considering view an the most very may that and we'll

COVID anticipated may vaccines additional downturn or available more lockdowns be example, XXXX occur. but economic an cases one from may are the For rise or on now, by

stimulus. care other elevated, an Additionally, a organization, brainpower business and in parts have degree necessary shareholders, as but of with environment. capability are provide cost learned through crisis the a for mitigated but This there results on and accelerate cost additional manage clients, curiosity year, demonstrated of agility out the in our we historical as I with the businesses inspiring below moving offsets be may the direct and trends our for unexpected events. impressive have our may know come be direct certainty What to fiscal is to small bolstered by model stakeholders. with under do suffer. we year, pandemic Conversely, along and we and may What amazing have many our depth to intensifies, be is of If with is we clients to may our control, today offset. resourcefulness this growth growth if may pandemic an or the this our and execute competence and to within an breadth control, ingenuity and level matters respond experienced

year. the And XXXX the back results pleased and ahead today, outlook we balance year. next with to of pass call look whatever This certainly are like the our our in for future, time, We with we the I'd confidence face to Doug.

Douglas Sharp

Thanks, Paul.

the guidance our for the an fourth provide me let for Now, quarter and year XXXX. full update

aware, to As and the uncertainty. of political any trajectory the details the stimulus conditions the and uncertainty as to government the of the you're continuous this environment pandemic current and economy, and there be the as of further duration timing

provide upcoming therefore, outcome our do when areas in providing consider in formal and We providing renewal And further of We when upcoming over the into factors account any have these of taken our XXXX, year selling these this call. remainder not guidance and for year. process guidance considering earnings typically next guidance the for will the our season we'll financial and the at be budgeting developments in year-end our time. XXXX we this

Now employee the that XXXX. growth details we just over expect of based remainder to upon the Paul worksite sequential continue shared,

XXX,XXX, to economy. that improved growth, community of year are around QX and increase X% QX employee pricing X% XXXX. to adjusted to pandemic significant the $X.XX. now With $XXX million, a on $XX employees of worksite decrease of its XXXX the are of $X.XX of XX% expected our million worksite When outlook we our EPS by raising outperformance, forecasting with to quarter, we of the caused impact strength current fourth small the $XXX QX for equates of an compared full full average worksite our programs, face million EBITDA in guidance and range employees over cost to for and in our XXX,XXX QX benefits a X% $XX to XXXX the business in a particularly earnings and range year XXXX. program, EBITDA expectations in X% only million, when challenges the to average of increase of our combined an an forecasting forecasting paid now paid direct For adjusted to adjusted we're sequential This

year, adjusted As a for $X.XX, are full XXXX EPS, now we forecasting $X.XX up previous range to from $X.XX. $X.XX our of of to guidance

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

Operator

question your will & the Instructions] [Operator line Presenters, sir. of from you, Company. first Josh come from Vogel Thank Sidoti

Go Your line now live. please. is ahead,

Josh Vogel

Thanks morning guys. taking my questions. for Thank you. Good

Paul Sarvadi

Good morning.

Douglas Sharp

Good morning.

Josh Vogel

seeing of your a selling around in environment. lot Obviously, virtual Paul, comments. some a effectiveness question you're just in a of

forward, you and move want in am you efficiency that could for I success we there's term, opportunity curious meetings pared-down an though, estate gains. here the face-to-face longer the virtually. to potentially selling if to to real But As reintegrate just lead footprint given

Paul Sarvadi

consider the But needs actually what into as have and out That's something sales those to how and have to we'll long throughout teams be the customer we But we how evaluate close of to country as will we distributed may that. again, and come remember, certainly changes evaluate run our needs the change service both future. our for base. work

Josh Vogel

Great. percent curious, hit dissect travel? hardest your restaurants, sectors, just is to entertainment, exposure comments hospitality, base, the if around limited so Okay. what And within your we and having like client

Paul Sarvadi

customer have base. types than a restaurants stay really, hardest risk. have other just our that rates times, is of hit, been target that and high in X%. nominal. turnover types really which lot generally -- away I It's companies from employer less significant aren't of a We mean, of as industries And

from our before that And about. model part this actually all came we of so, because that, was just benefited

Josh Vogel

if then, just get any in -- year-over-year can detail more a you clients Okay. around what pricing? pretty lose was I little pricing. And X.X% curious obviously, successful bit that behind And was you did improvement? Great. over

Paul Sarvadi

over that I'd -- their But X.X% for kind this our for decision. -- value plus the of that. That's fee in the paying we service changes of analysis providing, to -- that out driving like how what customers may clients workers' compensation and own et value pricing comprehensive about they're we what that every markup in We other It's at even see benefits, have lose we're a always services any cost No. our though pricing like X% allocations change the type -- related typically they're costs is We full and cetera. total call we of the getting no. payroll year. of the some what were taxes, clients turnover have didn't year, look which includes the -- that our even direct and of for

strategy that So, to year to was our to activity the into higher, had drive cost cost actually last year. we seen in our coming pricing build higher the large claim from and match

done We have That's like shape. in feel we built that. we're now. very And good

we now that expect pandemic, with realize of from over right a but trend in there's time we benefit that the We over trend. coming a lower in period the line the have longer plan effects the be normal -- more to

to normalized. that we so, make been as we've have accounted And for pricing sure things

Operator

Thank you, sir.

Securities. the from from Tobey come will Truist question next line Your Sommer of

Your is Go now ahead, line live. please.

Tobey Sommer

you company's ago to have return Paul, on growth, how or that independently worksite level of you. and your you you if to was experience felt the I [ph]. process compare sort could that about ability could wondering months optimism double-digit thought some Thank of to operating and perhaps now six three you comment employee

Paul Sarvadi

planning. growth so double-digit end plus And be now way for at you at is in at is then no to kind or in the next soon properly Tobey. growth blood. we do opportunity works this back the model year we how little you starting awesome. double-digit planning We XX and have to of inputs effective double-digit where the That's your right for great. over to optimize that. selling The Of you around is We're demand we double-digit XX-month the sales growth. looks minus efficiency rate the ultimately keep grow And you the soon for. then somewhat the point growth, It's reason sales live which can our how have affected services rate you, shouldn't period, and started. market retention the the a time some by campaign kind we our is, really and for mid-market performance, we get is it? year. unit retention Yes. able -- year if have, you BPAs right unit we this we're at There's an what unit Thank is that how of choppier. our right But a to fall point, get from can both It course, to focus that's like have

year. worksite by reduced X%. about we're the back pandemic end the We've come think all the almost So, way We the employee of even.

hit So, a if we quarter to mulligan, the the almost that year we up able second do-over up ramped the can a like should certainly as back point, third to at it's and growth. double-digit like and start ramp be we

terms in growing believe we on have into other are that of and point that pretty operation, -- being to pending employees that's to get really inputs. then back going us that how of quarter of Now full effect learned the We've we and we're into making track back dig practices these double-digit. you in things the more some pretty to think when that get the -- I to around over company will that you're new growth. there into year to and severe, are of the budget considerations. learning put have best to will from are our good shutdowns a next like in things we're those do taking delay across If to balance worksite all kind able these We're in and going as begins here on But can sure fast.

Tobey Sommer

back XXXX things I of question If kind to a and costs I ahead ask year in of If COVID-related at get XXXX? Thank of maybe Just much your we much, how net of as queue. our might other use look to for think so and Doug, so norm next then that the can been relative we benefit benefit guidance. that or I of own numbers about not inputs, effect you. model have how reap, altered, some a historic could

Douglas Sharp

Yeah. is a It's a outside my favorably the initial that little and do a of our quarter, -- even the a answer, prudent of second of the What arena quarter we've of of bit difficult and as where different puts in of develop to takes benefits within you a it. seen procedures uncertainty lot is, degree to it of there's deferral COVID bit so. the prepared was the area had and quite remarks elective relative because obviously high in out I estimates mentioned that

The quarter is normalization. going towards third back more

year. you But a We procedures, quarter. back of said, come that okay, degree the we in If of third not expected. bit remember, second in the we saw -- the we the that we deferred little those elective half don't the to to expect

on Now continued normalization, the to guidance what treatment fourth of quarter costs COVID that is into fourth that and incorporated increased were returned and testing into some top quarter.

conservative there. that. appropriately puts guidance been you've we've takes in think But the relative I got quarter fourth So some to and

that season of the got people as a you've the we're are result CDC the precautions from flu also taking. hearing mild You've --

-- have year. the potential got the with that you've the And unemployment goes And too. occurred throughout all the layoffs in so, costs growth that COVID with it then into

range would So, the there's expecting probably a I'm related a not trend just because uncertainty the cost going X% to year, I year-over-year all X% -- so much you say, pieces. giving of those benefit so. were we in number, it's to or into

we've X% results which end to all and that of with you, just so. or for day, year-to-date proves be XXXX the true it forecast, if I probably discussed quarter the would achieved that fourth the at our the guidance, With with flattish

Tobey Sommer

Thank you. That’s helpful.

Operator

Capital you, next Instructions] from line question Thank your Martin Partners. from of Roth [Operator sir. will Jeff Presenters, the come

please. live. now ahead, Go line Your is

Jeff Martin

in I think had that plans, April morning, this you growth towards your you. of year? I the May, if Could was, XX%, you to outlined you talked Thank Good or about how should the and know well. know about midpoint secondly, hope XX% touch How terms I XX% quarter? but BPA I and trend? that throughout in And Doug. BPA Paul growth expectation we year getting think, recall. that back of sales you the did next effectiveness then I your on

Paul Sarvadi

Yeah. That's good. you, Jeff. Thank

So, in how our terms of works, of as the that our our progresses, pattern historical sales in work. every and -- mind year the bigger budget the gets keep as budget month following how sales

increase So, bigger We year second which in that we is good the is but we is as had a it And budgets good -- performance a quarter. during the were in number XX% than environment. believe range, this because it's progresses. the up quarter go

probably increase and our and next as to on but preliminarily also we're that BPA conclusion dig on down we're just looking final is will to to allow and growth. at or able to have intuition into a this, efficiency we come continue that team growth. for to some BPA come maintain six so And a year, XX% really that gain growing could were the naturally We pause we drive budget least out double-digit going months don't. So, the in

gives at such a it some looking us nice options. we're but we're now, those next for So, year, really position options strong in

the other stay we'll in kind things upside BPAs continue from we such might to we ahead. So, and optimize growth have if the to year -- options going next be our we'll how to of If a with of the But we're strong playing. like into have there's we sources, are one performance able decide say levers It's about what of lot to I going year. into the see year. do

Jeff Martin

the that on kind could know activity Are with prior in trending Okay. an quarter to been benefits And second side? right large you direction. give of claim back us XXXX? the I had then, levels the cost we update gradually of to

Paul Sarvadi

No.

gone back. haven't We

you'll came three we where said we into were a we the elevated. had in as the year, If row it, quarters claims remember

We've you've a do pricing. have relate into a kind tell claims little now that that. crisis. a COVID done the that to baking were it's normal harder because anything of COVID bit with Because large large of we that didn't got to So, gotten But to claim.

it's goes a if aren't I So, it muddy upside. planning that's just gotten we back But -- for it there. little

of elevated and that baking far concerned matched quarter Okay? have, pricing when a And as originally it now to spiked, we're in kind to better we as we're second go habit that gotten stayed off in was as going which we're tell. but as in harder it not it's forward. addressed little It's and good that we've

Jeff Martin

the And if How Great. vaccine last benefits question, I Okay. we about could. relating treatments? to cost next year, healthcare think should then, one

Paul Sarvadi

there's a a battle that what for so be that, cost be to that lot there's remains is that you Well, have will because have. weighed you about is And covered. how seen

for government of those. volume has Our the -- prepaid certain development vaccine and a

could happens what into we so, And that come going forward, don't we're our know. costs And some anticipating plan.

those I prudent at say, And this costs, of no it's think the really questions you idea. that's much one consider just point. unanswerable have thing we to like how

Jeff Martin

anyway. Thanks for the Sure. Well, questions. taking that helps

Paul Sarvadi

bet. You

Operator

of from Thank you. [Operator Mark Instructions] Your the next Baird. question will Marcon line from come

live. now Go is ahead, Your please. line

Mark Marcon

Good morning, Paul and Doug.

Paul Sarvadi

Mark. Good morning,

Mark Marcon

are versus bit synchronization small clients? what of business optimization? little larger one in you and your quarter. the about which Nice selling Can a of seeing most, is the Like versus talk mix you terms

Paul Sarvadi

in customers customers into optimization. sell as into are workforce but pretty from it's remember modest workforce And the of there synchronization. some Sure. -- rate. And we that In to that customers a space move optimization promote mid-market to when been they workforce mid-market -- those space, that grow. segment, is we we most that still inputs we the mid-market grow on But have also

And migration, we sell growing do have But in workforce we say accommodate mid-market. is to how we're do and is we another there so, still able It optimization great. means companies option than synchronization developing. would even I some which more

So, strategy is on that well working front.

Mark Marcon

selling administration? What of here? about Great. the help? And progress what see we sort How's workforce that

Paul Sarvadi

strides sell. -- And continued our on people to Yeah. We've made learning. good we've

on, I has focus taken a year everything else had it However, with that to backseat. would more this say of we've

how It XX% on that to against the discouraged the to budget. is rather get at it. But like soon crisis. as of can on that And And not by XX% fashion more close circumstances we'll not in than in matter so, do all. the that our a you on a we'd -- we're the we'll WO literally intense where just once get budget. it of be We're allow back much as middle a

Mark Marcon

market, then discernible look of just at And Particularly a the of extent terms markets Right. uptake for there the versus -- nascent wondering, just was was on take PEO staying was the a the performance to that? there If established regions? describe what sec. BPAs, difference How a of we in would more core in terms it in sales you ones?

Paul Sarvadi

so not strong bit you it related more probably to harder more Well, I and West much evened degree. Coast. would maybe directly a quarter, little a severe, a good say out were third proposals, But lockdowns get where cetera. we've meetings Even little on to had that to et the a much was had the it's that get Northeast pretty

things it depends. -- So we would up. It general with in opening easier. I It bounce just sense, say were around. just we was noticed a But does have

circumstance. on So, have say and there challenge the I is taken would performed. in But every every also the a situation, deals for sales across in we they've there. the all proud of really team the board every market, sold And connection I'm that way

Mark Marcon

is Wondering with like the wondering into which about provided elaborate Right. that And on this all And to fall clients. pricing benefits marketing -- effect. going program your you you going given your you've you're going how about of selling how because then, season got factor then going thinking are do lack terms you've think healthcare, in regards I'm to with how regards to new large that to you're do the are year how vaccines, year, how to next you procedures of claims, that, have -- in the this favorable or? uncertainties happens quotes, deferred give to the what to you like with the

Paul Sarvadi

long to best -- interruptions the that either And can favorable to Yeah. that or the try the short-term play benefit do to of the trends unfavorable only properly sides. and this That's question, trends view things to and drive really any trend, your do is on game evaluate you way our good the Mark. the those on a is

would is give relationship. clients of environment part our have of stable to they outside a with more our goal So, otherwise them our than much to

sometimes a of actually So, clients. take behalf on we the hit

sometimes You difference our then in versus a affects And might've like what in in to eye But trend what it so And benefit we XXXX. long-term has benefits. the in noticed the long-term short-term. that there's the XXXX. our keep it works year in happens far this continued have on to

of And stellar triangulate our with consultant that. So, that keep and trend. make in of lot the do track our we to really that our work all price a sure team and that long-term matching carriers we're internal outside we on

those people largest done other that and coverage marketplace we those things over certain of just -- it thing of COVID million. And when reminded purchase claims, those to is more et co-morbidities, of or the recently is really realize do we there's claims, in cetera. be did claims need where some that things one that claims you that the that $X things it, of The drive didn't have -- today some large large turns think we've can for but out I claims drive

part a you part the also of of that's of So, long-term the how kind manage plan, trend.

Operator

you, Thank sir.

coming the question Sommer from line Truist follow-up a have You Securities. Tobey from of

please. line Your Go now live. is ahead,

Tobey Sommer

it trends like you. Thanks. the because to pricing Thank to the quarter you've sort me? Could pretty seen, you seems historical number relative contextualize in good what X.X% a of

Paul Sarvadi

year, do. on it's mean, you're price -- increases but I be but down a actually elections after -- around kind -- cost It's plan benefits some than what would plan. it higher changing may I it's A say increase is buy that, normal your X.X% we benefits to it's to Yeah. going when have X% people all-in to modestly lower number, a good more of benefit, normally their -- buy will benefit choosing over or

think and number. in all-in that lot X% to a typically an more That's taken X.X% a see but you'd is of I this factors, So, it's X.X%.

So we year and make that sure we pace that at in would the shows claims covered saw continued that we did the last are. that normal large some be to if we trend catch-up

Tobey Sommer

very Thank much. you

Operator

next question line of the sorry coming question I'm Your Marcon follow-up -- -- -- Mark follow-up Instructions] from [Operator your from you. a Thank Baird.

is please. now ahead, live. Go line Your

Mark Marcon

comp, Just the you can a change go-forward quick basis? we this little on a more And question with talk that to how should about bit happened quarter? a stock regards think it about

Paul Sarvadi

Yeah.

think, the the two comp earning employee increase performance And our particularly to upon that stock-based side, side I comparison two last on and some how to was was comp quarter, that, year's quarter, and remembered and year's based the the both are quarter was plans drove with year third still to claim relative I this And outperformance, quite past stock-based as we one again, quarter. on And had impacted elevated because number. the activity, worksite the mentioned, tied low. and those comp the earnings recently. our fourth metrics factors that then if the large you accrual pretty last it last the stock-based low

as year, way speaking, generally expected performing this a we're the if I with just continue So, go we fourth the things guidance. quarter, -- our expect perform to would

increase quarter stock-based to healthy the of relative last year. in Another probably fourth the comp

Operator

time. at sir. you, call would there And over further to for the closing Mr. this are like Thank Sarvadi to back questions turn I remarks. no

Paul Sarvadi

thank next like forward XXXX look everybody putting you our and And quarter. to this together to Well, joining and about the informing we'd our touches putting for year once we on again, expectations finishing us for today. outlook

season to out road. and Thank on So, the wish everybody a hope see great you. holiday

Operator

much, everyone presenters. And participating. today's conference. you This Thank thank concludes so for again, you

disconnect. and have not day. lovely Stay may safe a You

Insperity (NSP) 2 Nov 202020 Q3 Earnings call transcript