Insperity Inc (NYSE: NSP) stock plunged over 20% (As of 11:56 am GMT-4; Source: Google finance)  though the company  in the second quarter of FY 19 has reported the 22% rise in the adjusted EPS to $0.83 over the second quarter of 2018. Adjusted EBITDA increased 22% over the second quarter of 2018 to $56.7 million. The revenues grew by 13% over the second quarter of 2018 to $1.04 billion on a 14% increase in the average number of worksite employees (“WSEEs”) paid per month. The continued double-digit WSEE growth resulted from new client sales driven by an 11% increase in the average number of Business Performance Advisors. Further, client retention averaged just above 99%, near our historical high level. Net gains in the client base were lower than expected, particularly during the last month of the quarter, due mainly to less hiring of full-time and seasonal employees.

Moreover, the gross profit grew 12% over the second quarter of 2018 to $173.7 million and included higher than expected benefits costs, driven by large claim activity. This was partially offset by favorable claims development in the workers’ compensation program and slightly higher pricing. Operating expenses increased 12% over the second quarter of 2018, and included continued investments in the growth, that includes the costs associated with an increase in the number of Business Performance Advisors and the opening of eight new sales offices over the past four quarters. The company has also continued to invest in the technology and product and service offerings.

Additionally, the net income per WSEE per month increased 23% from $62 in the 2018 period to $76 in the 2019 period. Adjusted EBITDA per WSEE per month increased 6% from $109 in the 2018 period to $115 in the 2019 period. Cash outlays in the first six months of 2019 included the repurchase of approximately 315,000 shares of stock at a cost of $38.8 million, dividends totaling $24.7 million and capital expenditures of $17.2 million. Adjusted cash, cash equivalents and marketable securities at Jun. 30, 2019 were $130.7 million.

For the third quarter 2019, the company expects average WSEEs paid to be in the range of 243,000 to 244,100. For FY 19, the company expects average WSEEs paid to be in the range of 237,350 to 239,500. Adjusted EPS, for the third quarter 2019 is expected to be in the range of $1.00-$1.04 and for FY 19, Adjusted EPS is expected to be in the range of $4.59-$4.74.