ADMINISTAFF INC. (ASF)

Administaff, Inc. (NYSE:ASF), a leading provider of human resources services for small and medium-sized businesses, today announced results for the second quarter and six months ended June 30, 2007. The company reported a 30.0% increase in second quarter net income to $13.6 million in the 2007 period from $10.5 million in the 2006 period. Diluted earnings per share increased 35.1% to $0.50.

Second Quarter Results

Revenues for the second quarter of 2007 increased 11.5% over the 2006 period to $376.8 million, due to an 8.5% increase in the average number of worksite employees paid per month and a 2.7% increase in revenues per worksite employee per month.

?We are very pleased with the solid unit growth and substantial gross profit improvement experienced in the second quarter,? said Paul J. Sarvadi, Administaff chairman and chief executive officer. ?Our strong operating results have positioned us well to take advantage of new market and product opportunities over the second half of 2007 and into next year.?

Gross profit increased 15.0% over the second quarter 2006 to $78.5 million due to the growth in the average number of worksite employees paid and better-than-expected results from direct cost programs. The average gross profit per worksite employee per month increased to $241 in the 2007 period from $228 in the 2006 period.

Operating expenses for the quarter increased 10.9% to $60.2 million, and included the planned addition of sales and service personnel and an accrual for incentive compensation due to better-than-expected operating results.

Operating income for the second quarter of 2007 increased 31.0% to $18.3 million, with an average operating income per worksite employee per month of $56 compared to $47 in the 2006 period.

Year-to-Date Results

For the six months ended June 30, 2007, the company reported a 4.8% increase in net income to $22.0 million compared to $21.0 million in the same period in 2006. Diluted earnings per share increased to $0.79 from $0.74 in the 2006 period.

Year-to-date revenues were $784.5 million, a 12.3% increase over the 2006 period, which resulted from an 8.9% increase in the average number of worksite employees paid per month and a 3.1% increase in revenues per worksite employee per month. Gross profit for the six months ended June 30, 2007 increased 7.6% to $146.5 million. The average gross profit per worksite employee per month was $229, a 1.3% decrease compared to the 2006 period.

Year-to-date operating expenses increased 9.6% to $118.2 million. On a per worksite employee per month basis, operating expenses increased 0.5% over the 2006 period to $185. The resulting operating income for the six months ended June 30, 2007, was $28.3 million compared to $28.4 million in the 2006 period.

EBITDA for the first half of the year was $41.8 million. In addition, the company received a scheduled return of $24.3 million in excess funding from its workers' compensation program. Cash outlays included capital expenditures of $5.5 million, dividends of $6.1 million and share repurchases.

?During the quarter we repurchased over one million shares at a cost of approximately $35 million while maintaining working capital of approximately $119 million,? said Douglas S. Sharp, vice-president of finance, chief financial officer and treasurer. ?For the full year, we have repurchased 1.4 million shares at a cost of approximately $48 million, and have 1.1 million shares remaining under the authorization.?

Administaff will be hosting a conference call today at 10 a.m. EDT to discuss these results, give guidance for the third quarter and full year 2007 and answer questions from investment analysts. To listen in, call 800-322-5044 and use passcode 45731304. 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 for the third quarter and full year 2007 will be available at the same Web site later today. A replay of the conference call will be available at 888-286-8010, passcode 76022692, 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 46 sales offices in 23 major markets. For additional information, visit Administaff's Web site at http://www.administaff.com.

The statements contained herein that are not historical facts are forward-looking statements within the meaning of the federal securities laws (Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934). You can identify such forward-looking statements by the words ?expects,? ?intends,? ?plans,? ?projects,? ?believes,? ?estimates,? ?likely,? ?possibly,? ?probably,? ?goal,? ?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, including but not limited to the California State Unemployment Tax matter; (iii) changes in our direct costs and operating expenses including, but not limited to, 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; (iv) the effectiveness of our sales and marketing efforts; (v) changes in the competitive environment in the PEO industry, including the entrance of new competitors and our ability to renew or replace client companies; (vi) our liability for worksite employee payroll and benefits costs; and (vii) 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.

Administaff, Inc. Summary Financial Information (continued) (in thousands, except per share amounts and statistical data) (Unaudited)
	Three months ended June 30,								Six months ended June 30,
	2007			2006			Change		2007			2006			Change
Operating results:
Revenues (gross billings of $2.191 billion, $1.910 billion, $4.465 billion and $3.822 billion, less worksite employee payroll cost of $1.814 billion, $1.573 billion, $3.681 billion and $3.124 billion, respectively)	$ 376,758			$ 337,778			11.5	%	$ 784,516			$ 698,414			12.3	%
Direct costs:
Payroll taxes, benefits and workers' compensation costs	298,291			269,562			10.7	%	637,982			562,205			13.5	%
Gross profit	78,467			68,216			15.0	%	146,534			136,209			7.6	%
Operating expenses:
Salaries, wages and payroll taxes	33,076			29,440			12.4	%	65,121			57,664			12.9	%
Stock-based compensation	2,435			1,068			128.0	%	3,743			1,357			175.8	%
General and administrative expenses	14,276			13,876			2.9	%	30,222			29,851			1.2	%
Commissions	2,704			2,709			(0.2	)%	5,623			5,542			1.5	%
Advertising	3,958			3,319			19.3	%	6,060			5,702			6.3	%
Depreciation and amortization	3,704			3,829			(3.3	)%	7,424			7,724			(3.9	)%
Total operating expenses	60,153			54,241			10.9	%	118,193			107,840			9.6	%
Operating income	18,314			© Business Wire 2007 Dernières actualités sur ADMINISTAFF INC.	Graphique de news Court terme Moyen terme Long terme pas de graphique Mes valeurs   - Liste vide - >> Devenez membre, c’est gratuit