-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LuVdifV7jFU75SVgkJiePd+qe1FDdYFJHkuXOvJhcFzs1sPck/zLFGksMx4Ltiz7 VkmKNVRnFFdhOLyl3frOVg== 0001144204-09-023730.txt : 20090504 0001144204-09-023730.hdr.sgml : 20090504 20090504090825 ACCESSION NUMBER: 0001144204-09-023730 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20090504 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20090504 DATE AS OF CHANGE: 20090504 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ADMINISTAFF INC \DE\ CENTRAL INDEX KEY: 0001000753 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-HELP SUPPLY SERVICES [7363] IRS NUMBER: 760479645 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13998 FILM NUMBER: 09791669 BUSINESS ADDRESS: STREET 1: 19001 CRESCENT SPRINGS DR CITY: KINGWOOD STATE: TX ZIP: 77339 BUSINESS PHONE: 7133588986 MAIL ADDRESS: STREET 1: 19001 CRESCENT SPRINGS DR CITY: KINGWOOD STATE: TX ZIP: 77339 8-K 1 v147799_8k.htm
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549


FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported):  May 4, 2009

Administaff, Inc.
(Exact name of registrant as specified in its charter)

Delaware
1-13998
76-0479645
(State or other jurisdiction of
(Commission
(I.R.S. Employer
incorporation)
File Number)
Identification No.)
 
19001 Crescent Springs Drive
Kingwood, Texas 77339
(Address of principal executive offices and zip code)


Registrant’s telephone number, including area code:  (281) 358-8986


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o
Pre-commencement communications pursuant to Rule 14d-2(b) under The Exchange Act (17 CFR 240.14d-2(b))

o
Pre-commencement communications pursuant to Rule 13e-4(c) under The Exchange Act (17 CFR 240.13e-4(c))
 
 
 

 
 
Item 2.02.  Results of Operations and Financial Condition

On May 4, 2009, Administaff, Inc. issued a press release announcing the company’s financial and operating results for the quarter ended May 4, 2009.  A copy of the press release is furnished as Exhibit 99.1 hereto and incorporated by reference.

Item 9.01.  Financial Statements and Exhibits

(c)  
Exhibits

 
99.1 — Press release issued by Administaff, Inc. on May 4, 2009.
 
 
2

 
 
SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
  ADMINISTAFF, INC.  
       
 
By:
/s/ Daniel D. Herink   
    Daniel D. Herink   
    Senior Vice President of Legal, General Counsel and Secretary   
       

Date:  May 4, 2009
 
 
 
3

 
 
EXHIBIT INDEX


Exhibit
No.
Description

99.1   —   Press release issued by Administaff, Inc. on May 4, 2009.
 
 
 
4

 
 
EX-99.1 2 v147799_ex99-1.htm
 
Exhibit 99.1

ADMINISTAFF ANNOUNCES FIRST QUARTER RESULTS
· 
 EPS of $0.33 on revenues of $462 million
· 
 Working capital up $7 million to $105 million

HOUSTON – May 4, 2009 – Administaff, Inc. (NYSE: ASF), a leading provider of human resources services for small and medium-sized businesses, today reported first quarter 2009 net income of $8.2 million, or $0.33 earnings per diluted share on revenues of $462.0 million.  In the 2008 first quarter, net income was $13.2 million and earnings per diluted share was $0.51.

“We are pleased with our first quarter results, which demonstrate our ability to manage effectively and continue to make substantial profits through a difficult economic period,” said Paul J. Sarvadi, Administaff chairman and chief executive officer.  “Although current marketplace realities have had a negative effect on the small business community, the value of our services in helping small businesses succeed has never been more apparent.  Demand for our strategic HR services remains strong and sales efforts are improving, which we believe will produce considerable upside as economic conditions improve.”

Revenues for the first quarter of 2009 increased 1.3% over the 2008 period to $462.0 million, due to a 2.9% increase in revenues per worksite employee per month, partially offset by a 1.6% decrease in the average number of worksite employees paid per month.

Gross profit for the first quarter 2009 decreased 3.5% to $83.6 million compared to the first quarter of 2008.  As expected, the average gross profit per worksite employee per month decreased 2.0% to $249 in the 2009 period from $254 in the 2008 period.
 
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Administaff, Inc.
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Operating expenses for the quarter increased 3.0% to $70.7 million; however, were approximately $2 million lower than our first quarter budget due to effective cost control efforts.
 
As a result, operating income for the first quarter of 2009 was higher than expected at $12.9 million and was 28.3% lower than the same period last year.

EBITDA for the first quarter was $17.7 million.  Cash outlays included capital expenditures of $2.5 million and dividends of $3.3 million.

“Although we experienced a decline in worksite employees during the quarter, we successfully managed the bottom line through direct cost management and operating expense control,” said Douglas S. Sharp, senior vice-president of finance, chief financial officer and treasurer.  “This operating expense control demonstrates the flexibility in our business model and the timely and effective execution by our corporate employees.”

Administaff will be hosting a conference call today at 10 a.m. EST to discuss these results, give guidance for the second quarter and full year 2009 and answer questions from investment analysts.  To listen in, call 888-419-5570 and use passcode 15586961.  The call will also be webcast at http://www.administaff.com.  To access the webcast, click on the Investor Relations section of the Web site and select “Live Webcast.”  The conference call script and company guidance will be available at the same Web site later today.  A replay of the conference call will be available at 888-286-8010, passcode 51988188, for two weeks after the call.  The webcast will be archived for one year.

Administaff is the nation’s leading professional employer organization (PEO), serving as a full-service human resources department that provides small and medium-sized businesses with administrative relief, big-company benefits, reduced liabilities and a systematic way to improve productivity.  The company operates 51 sales offices in 24 major markets.  For additional information, visit Administaff’s Web site at http://www.administaff.com.
 
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Administaff, Inc.
Page 3
 
 
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,” “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, Administaff, 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 business plans or strategies, projected or anticipated benefits or other consequences of such plans or strategies, or projections involving 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 current expectations, estimates and projections.  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) changes in general 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, financial solvency of workers’ compensation carriers and other insurers, state unemployment tax rates, liabilities for employee and client actions or payroll-related claims, changes in the costs of expanding into new markets, and failure to manage growth of our operations; (v) 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 and benefits costs; (viii) our liability for disclosure of sensitive or private information; and (ix) an adverse final judgment or settlement of claims against Administaff.  These factors are discussed in further detail in Administaff’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.
 
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Administaff, Inc.
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Administaff, Inc.
Summary Financial Information
(in thousands, except per share amounts and statistical data)
 
   
March 31,
   
December 31,
 
   
2009
   
2008
 
   
(Unaudited)
       
Assets
           
Cash and cash equivalents
  $ 196,583     $ 252,190  
Restricted cash
    35,103       36,466  
Marketable securities
          225  
Accounts receivable
    171,930       125,093  
Prepaid expenses and other current assets
    29,386       35,646  
Total current assets
    433,002       449,620  
                 
Property and equipment, net
    87,736       89,339  
Deposits
    72,345       68,020  
Other assets
    9,879       9,861  
Total assets
  $ 602,962     $ 616,840  
                 
Liabilities and Stockholders’ Equity
               
Accounts payable
  $ 1,213     $ 3,007  
Payroll taxes and other payroll deductions payable
    106,938       123,666  
Accrued worksite employee payroll expense
    150,240       129,954  
Accrued health insurance costs
    7,405       14,715  
Accrued workers’ compensation costs
    36,676       38,028  
Other accrued liabilities
    22,308       35,187  
Capital lease obligations
    373       537  
Income tax payable
    1,435       4,157  
Deferred income taxes
    1,494       1,956  
Total current liabilities
    328,082       351,207  
                 
Accrued workers’ compensation costs
    49,042       46,589  
Deferred income taxes
    11,341       10,565  
Total noncurrent liabilities
    60,383       57,154  
                 
Stockholders’ equity:
               
Common stock
    309       309  
Additional paid-in capital
    138,984       139,415  
Treasury stock, cost
    (146,361 )     (147,952 )
Retained earnings
    221,565       216,707  
Total stockholders’ equity
    214,497       208,479  
Total liabilities and stockholders’ equity
  $ 602,962     $ 616,840  
 
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Administaff, Inc.
Page 5
 
 
Administaff, Inc.
Summary Financial Information (continued)
(in thousands, except per share amounts and statistical data)
(Unaudited)
 
   
Three months ended
March 31, 
       
   
2009
   
2008
   
Change
 
                   
Operating results:
                 
Revenues (gross billings of $2.558 billion and $2.554 billion less worksite employee payroll cost of
$2.096 billion and $2.098 billion, respectively)
  $ 461,979     $ 456,066       1.3 %
Direct costs:
                       
Payroll taxes, benefits and workers’ compensation costs
    378,418       369,459       2.4 %
Gross profit
    83,561       86,607       (3.5 )%
Operating expenses:
                       
Salaries, wages and payroll taxes
    38,652       36,979       4.5 %
Stock-based compensation
    2,786       2,385       16.8 %
General and administrative expenses
    17,772       18,739       (5.2 )%
Commissions
    3,273       3,094       5.8 %
Advertising
    3,986       3,778       5.5 %
Depreciation and amortization
    4,195       3,646       15.1 %
Total operating expenses
    70,664       68,621       3.0 %
Operating income
    12,897       17,986       (28.3 )%
Interest income
    579       2,474       (76.6 )%
Income before income tax expense
    13,476       20,460       (34.1 )%
Income tax expense
    5,310       7,304       (27.3 )%
Net income
  $ 8,166     $ 13,156       (37.9 )%
Diluted net income per share of common stock
  $ 0.33     $ 0.51       (35.3 )%
Diluted weighted average common shares outstanding
    24,844       25,756          

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Administaff, Inc.
Page 6

 
Administaff, Inc.
Summary Financial Information (continued)
(in thousands, except per share amounts and statistical data)
(Unaudited)
 
   
Three months ended
March 31,
       
   
2009
   
2008
   
Change
 
                   
Statistical data:
                 
Average number of worksite employees paid per month
    111,742       113,541       (1.6 )%
Revenues per worksite employee per month(1)
  $ 1,378     $ 1,339       2.9 %
Gross profit per worksite employee per month
    249       254       (2.0 )%
Operating expenses per worksite employee per month
    211       201       5.0 %
Operating income per worksite employee per month
    38       53       (28.3 )%
Net income per worksite employee per month
    24       39       (38.5 )%


(1)
Gross billings of $7,630 and $7,497 per worksite employee per month, less payroll cost of $6,s252 and $6,158 per worksite employee per month, respectively.
 
(more)

 
Administaff, Inc.
Page 7
 
 
Administaff, Inc.
Summary Financial Information (continued)
(in thousands, except per share amounts and statistical data)
(Unaudited)

   
Three months ended
March 31,
       
   
2009
   
2008
   
Change
 
                   
Payroll cost (GAAP)
  $ 2,095,754     $ 2,097,588       (0.1 )%
Less: Bonus payroll cost
    (215,872 )     (234,524 )     (8.0 )%
Non-bonus payroll cost
  $ 1,879,882     $ 1,863,064       0.9 %
                         
Payroll cost per worksite employee (GAAP)
  $ 6,252     $ 6,158       1.5 %
Less: Bonus payroll cost per worksite employee
    (644 )     (689 )     (6.5 )%
Non-bonus payroll cost per worksite employee
  $ 5,608     $ 5,469       2.5 %

Non-bonus payroll cost represents payroll cost excluding the impact of bonus payrolls paid to the company’s worksite employees.  Bonus payroll cost varies from period to period, but has no direct impact to the company’s ultimate workers’ compensation costs under the current program.  As a result, Administaff management refers to non-bonus payroll cost in analyzing, reporting and forecasting the company’s workers’ compensation costs.

   
Three months ended
March 31,
       
   
2009
   
2008
   
Change
 
                   
Net income (GAAP)
  $ 8,166     $ 13,156       (37.9 )%
Interest expense
    9       21       (57.1 )%
Income tax expense
    5,310       7,304       (27.3 )%
Depreciation and amortization
    4,195       3,646       15.1 %
EBITDA
  $ 17,680     $ 24,127       (26.7 )%

EBITDA represents net income computed in accordance with generally accepted accounting principles (“GAAP”), plus interest expense, income tax expense, depreciation and amortization expense.  Administaff management believes EBITDA is often a useful measure of the company’s operating performance, as it allows for additional analysis of the company’s operating results separate from the impact of taxes and capital and financing transactions on earnings.
 
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Administaff, Inc.
Page 8
 
 
Non-bonus payroll and EBITDA are not financial measures prepared in accordance with GAAP and may be different from similar measures used by other companies. Non-bonus payroll and EBITDA should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Administaff includes non-bonus payroll and EBITDA in this press release because the company believes they are useful to investors in allowing for greater transparency related to the costs incurred under the company’s workers’ compensation program and the company’s operating performance during the periods presented. Investors are encouraged to review the reconciliation of the non-GAAP financial measures used in this press release to their most directly comparable GAAP financial measures as provided in the tables above.
 
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