SAN LEANDRO, Calif.,
Nov. 2, 2017 /PRNewswire/
-- TriNet Group, Inc. (NYSE: TNET), a
leading provider of comprehensive human resources solutions for
small to midsize
businesses, today announced financial results for the
third quarter ended September 30, 2017.
Third quarter highlights include:
- GAAP Total revenues increased 6% to $819.3 million, while Net Service Revenues
increased 28% to $205.9 million, each
as compared to the same period last year.
- GAAP Net income was $42.8
million, or $0.60 per diluted
share, compared to net income of $14.6
million, or $0.20 per diluted
share, in the same period last year.
- Adjusted Net Income was $40.3
million, or $0.56 per diluted
share, compared to Adjusted Net Income of $20.8 million, or $0.29 per diluted share, in the same period last
year.
- Adjusted EBITDA was $80.3
million, a 77% increase from the same period last year.
- Total WSEs at September 30, 2017
decreased 3% from September 30, 2016,
to approximately 325,000.
- Average WSEs decreased 2% as compared to the same period last
year, to approximately 324,000.
"We delivered strong financial results during the third quarter
as we continued to execute our strategic operational plan," said
Burton M. Goldfield, TriNet's
President and CEO. "By pairing our technology platform with
our deep industry-specific knowledge, we are developing tailored
vertical products that provide our clients with an exceptional HR
experience. We remain focused on leveraging our scale for the
benefit of our clients, while maximizing our ability to deliver
profitable growth for our shareholders."
GAAP Total revenues for the third quarter of 2017 increased 6%
from the third quarter of 2016 to $819.3
million, while Net Service Revenues increased 28% from the
third quarter of 2016 to $205.9
million. For the third quarter of 2017, Net Service
Revenues consisted of professional service revenues of $112.5 million and Net Insurance Service Revenues
of $93.4 million. Net Insurance
Service Revenues for the third quarter of 2017 consisted of
insurance service revenues of $706.8
million, less insurance costs of $613.4 million. Professional service
revenues for the third quarter of 2017 increased 2%, and Net
Insurance Service Revenues increased 85%, in each case, compared to
the third quarter of 2016.
At September 30, 2017, TriNet had cash and cash equivalents
of $263.5 million and total debt of
$431.6 million.
Quarterly Report on Form 10-Q
We anticipate filing our Quarterly Report on Form 10-Q ("Form
10-Q") for the three and nine months ended September 30, 2017 today, November 2, 2017,
and it will be available at www.trinet.com. This press release
should be read in conjunction with the Form 10-Q and the related
Notes to Condensed Consolidated Financial Statements and
Management's Discussion and Analysis of Financial Condition and
Results of Operations contained in the Form 10-Q.
Earnings Conference Call and Audio Webcast
TriNet will host a conference call at 2:00 p.m. PT (5:00 p.m.
ET) today to discuss its quarterly results and its outlook
for the third quarter and full year 2017. TriNet encourages
participants to pre-register for the conference call. Callers who
pre-register will be given a unique PIN to gain immediate access to
the call and bypass the live operator. To pre-register, go to:
http://dpregister.com/10111852. For those who would like to join
the call but have not pre-registered, they can do so by dialing +1
(412) 317-5426 and requesting the "TriNet Conference
Call." The live webcast of the conference call can be accessed
on the Investor Relations section of TriNet's website at
http://investor.trinet.com. A replay of the webcast will be
available on this site for approximately one year. A telephonic
replay will be available for one week following the conference call
at +1 (412) 317-0088 conference ID: 10111852.
About TriNet
TriNet is a leading provider of a comprehensive human resources
solutions for small to midsize businesses, or SMBs. We enhance
business productivity by enabling our clients to outsource their
human resources, or HR, function to a single strategic partner,
which allows them to focus on operating and growing their core
businesses. Our HR solutions include services such as payroll
processing, human capital consulting, employment regulation
compliance and employee benefits, including health insurance,
retirement plans and workers' compensation insurance. Our services
are delivered by our expert team of HR professionals and enabled by
our technology platform, with online and mobile tools, which allows
our clients and their employees to efficiently conduct their HR
transactions anytime and anywhere. For more information, please
visit http://www.trinet.com.
Use of Non-GAAP Financial Measures
Reconciliations of non-GAAP financial measures to TriNet's
financial results as determined in accordance with GAAP are
included at the end of this press release following the
accompanying financial data. For a description of these non-GAAP
financial measures, including the reasons management uses each
measure, please see the section of the tables titled "Non-GAAP
Financial Measures."
Forward-Looking Statements
This press release contains, and statements made during the
above referenced conference call will contain, statements that are
not historical in nature, are predictive in nature, or that depend
upon or refer to future events or conditions or otherwise contain
forward-looking statements including, among other things, TriNet's
expectations regarding: its ability to execute its strategic
operational plan, its ability to successfully leverage its scale
and its ability to deliver profitable growth. These statements are
not guarantees of future performance, but are based on management's
expectations as of the date hereof and assumptions that are
inherently subject to uncertainties, risks and changes in
circumstances that are difficult to predict. Forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause actual results, performance or achievements
to be materially different from our current expectations and any
past or future results, performance or achievements.
Important factors that could cause actual results to differ
materially from those expressed or implied by these forward-looking
statements include: risks associated with changes in, uncertainty
regarding, or adverse application of complex laws and regulations
that govern our business; our ability to be recognized as an
employer of worksite employees under federal and state regulations;
our ability to maintain the security of our information technology
(IT) infrastructure against cyber-attacks and security breaches;
our ability to manage unexpected changes in workers' compensation
and health insurance claims by worksite employees; unexpected
changes in the state and federal unemployment tax rates applicable
to our clients; fluctuation in our results of operation as a result
of numerous factors, many of which are outside of our control, such
as the volume and severity of our workers' compensation and
health insurance claims; failures or limitations in our business
systems; our ability to remediate the material weaknesses in our
internal controls over financial reporting; our ability to
effectively acquire and integrate new businesses; the effects of
volatility in the financial and economic environment on small and
mid-sized businesses; our ability to effectively manage our growth;
the effects of increased competition and our ability to compete
effectively; market acceptance of our vertical strategy; the
outcome of existing and future legal proceedings; changes in our
income tax positions or adverse outcomes from on-going and future
audits; adverse changes in our relationships with key vendors, in
particular our benefit and workers' compensation carriers; our
ability to manage client attrition; and our ability to comply with
the restrictions of our credit facility and meet our debt
obligations.
Further information on risks that could affect TriNet's results
is included in our filings with the U.S. Securities and Exchange
Commission (SEC), including our most recent Annual Report on Form
10-K and Quarterly Reports on Form 10-Q filed with the SEC, which
are available on our investor relations website at
http://investor.trinet.com and on the SEC website at www.sec.gov.
Copies of these filings are also available by contacting TriNet
Corporation's Investor Relations Department at (510) 875-7201.
Except as required by law, neither we nor any other person assumes
responsibility for the accuracy and completeness of the
forward-looking statements in this press release, and any
forward-looking statements in this press release speak only as of
the date of this press release. In addition, we do not assume any
obligation, and do not intend, to update any of our forward-looking
statements, except as required by law.
Contacts:
|
|
Investors:
|
Media:
|
Alex Bauer
|
Fatima
Afzal
|
TriNet
|
TriNet
|
Investorrelations@TriNet.com
|
Fatima.Afzal@TriNet.com
|
(510)
875-7201
|
(510)
875-7265
|
TriNet, Ambitions Realized and the TriNet logo are registered
trademarks of TriNet.
Key Financial and Operating Metrics
We regularly review certain key financial and operating metrics
to evaluate growth trends, measure our performance and make
strategic decisions. These key financial and operating metrics may
change over time. Our key financial and operating metrics for the
periods presented were as follows:
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
Percent
Change
|
(in thousands,
except per share and operating metrics data)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Q3 2017
vs. 2016
|
|
YTD 2017
vs. 2016
|
Income Statement
Data:
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
$
|
819,293
|
|
$
|
770,457
|
|
$
|
2,427,444
|
|
$
|
2,249,242
|
|
6%
|
|
8%
|
Operating
income
|
62,759
|
|
28,972
|
|
169,081
|
|
81,241
|
|
117
|
|
108
|
Net income
|
42,836
|
|
14,581
|
|
111,524
|
|
38,440
|
|
194
|
|
190
|
Diluted net income
per share of common
stock
|
0.60
|
|
0.20
|
|
1.57
|
|
0.53
|
|
200
|
|
196
|
Non-GAAP measures
(1):
|
|
|
|
|
|
|
|
|
|
|
|
Net Service Revenues
(1)
|
205,896
|
|
161,035
|
|
605,870
|
|
473,458
|
|
28
|
|
28
|
Net Insurance Service
Revenues (1)
|
93,366
|
|
50,542
|
|
264,577
|
|
140,969
|
|
85
|
|
88
|
Adjusted EBITDA
(1)
|
80,283
|
|
45,399
|
|
215,998
|
|
130,154
|
|
77
|
|
66
|
Adjusted Net income
(1)
|
40,297
|
|
20,800
|
|
108,565
|
|
59,798
|
|
94
|
|
82
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Metrics:
|
|
|
|
|
|
|
|
|
|
|
|
Total WSEs payroll
and payroll taxes
processed (in millions)
|
8,061
|
|
7,703
|
|
25,835
|
|
24,916
|
|
5%
|
|
4%
|
Total WSEs at period
end
|
325,138
|
|
333,778
|
|
325,138
|
|
333,778
|
|
(3)
|
|
(3)
|
Average
WSEs
|
324,043
|
|
331,652
|
|
325,347
|
|
324,652
|
|
(2)
|
|
—
|
|
(1) Refer to Non-GAAP
Financial Measures section below for definitions and
reconciliations from GAAP measures.
|
|
Nine Months
Ended
September 30,
|
|
Percent
|
(in thousands, except
operating metrics data)
|
2017
|
|
2016
|
|
Change
|
Cash Flow
Data:
|
|
|
|
|
|
Net cash provided by
operating activities
|
158,951
|
|
80,699
|
|
97%
|
Net cash used in
investing activities
|
(14,763)
|
|
(17,411)
|
|
(15)
|
Net cash used in
financing activities
|
(65,063)
|
|
(68,998)
|
|
(6)
|
|
|
|
|
|
|
(in
thousands)
|
September 30,
2017
|
|
December 31,
2016
|
|
Percent
Change
|
Balance Sheet
Data:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
263,527
|
|
$
|
184,004
|
|
43%
|
Working
capital
|
186,842
|
|
156,771
|
|
19
|
Total
assets
|
1,836,925
|
|
2,095,143
|
|
(12)
|
Notes and capital
leases payable
|
431,690
|
|
459,054
|
|
(6)
|
Total
liabilities
|
1,705,066
|
|
2,060,553
|
|
(17)
|
Total stockholders'
equity
|
131,859
|
|
34,590
|
|
281
|
|
TRINET GROUP,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE
INCOME
|
(Unaudited)
|
|
|
|
Three Months
Ended September 30,
|
|
Nine Months
Ended September 30,
|
(in thousands, except
share and per share data)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Professional service
revenues
|
$
|
112,530
|
|
$
|
110,493
|
|
$
|
341,293
|
|
$
|
332,489
|
Insurance service
revenues
|
706,763
|
|
659,964
|
|
2,086,151
|
|
1,916,753
|
Total
revenues
|
819,293
|
|
770,457
|
|
2,427,444
|
|
2,249,242
|
Insurance
costs
|
613,397
|
|
609,422
|
|
1,821,574
|
|
1,775,784
|
Cost of providing
services (exclusive of depreciation and amortization
of intangible assets)
|
49,989
|
|
50,142
|
|
157,264
|
|
139,881
|
Sales and
marketing
|
44,407
|
|
41,470
|
|
139,538
|
|
133,978
|
General and
administrative
|
28,505
|
|
22,477
|
|
82,031
|
|
69,078
|
Systems development
and programming
|
11,182
|
|
8,124
|
|
33,637
|
|
20,970
|
Amortization of
intangible assets
|
1,300
|
|
4,662
|
|
3,966
|
|
14,647
|
Depreciation
|
7,754
|
|
5,188
|
|
20,353
|
|
13,663
|
Total costs and
operating expenses
|
756,534
|
|
741,485
|
|
2,258,363
|
|
2,168,001
|
Operating
income
|
62,759
|
|
28,972
|
|
169,081
|
|
81,241
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest expense and
bank fees
|
(5,425)
|
|
(5,597)
|
|
(15,030)
|
|
(15,677)
|
Other, net
|
770
|
|
313
|
|
1,192
|
|
434
|
Income before
provision for income taxes
|
58,104
|
|
23,688
|
|
155,243
|
|
65,998
|
Income tax
expense
|
15,268
|
|
9,107
|
|
43,719
|
|
27,558
|
Net
income
|
$
|
42,836
|
|
$
|
14,581
|
|
$
|
111,524
|
|
$
|
38,440
|
Other comprehensive
income, net of tax
|
151
|
|
(125)
|
|
231
|
|
300
|
Comprehensive
income
|
$
|
42,987
|
|
$
|
14,456
|
|
$
|
111,755
|
|
$
|
38,740
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.62
|
|
$
|
0.21
|
|
$
|
1.62
|
|
$
|
0.55
|
Diluted
|
$
|
0.60
|
|
$
|
0.20
|
|
$
|
1.57
|
|
$
|
0.53
|
Weighted average
shares:
|
|
|
|
|
|
|
|
Basic
|
69,498,218
|
|
70,187,989
|
|
69,016,054
|
|
70,478,266
|
Diluted
|
71,499,591
|
|
71,964,603
|
|
71,138,743
|
|
72,126,060
|
|
TRINET GROUP,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
|
|
(in
thousands)
|
September 30,
2017
|
|
December 31,
2016
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
263,527
|
|
$
|
184,004
|
Restricted cash and
cash equivalents
|
15,445
|
|
14,569
|
Prepaid income
taxes
|
—
|
|
42,381
|
Prepaid
expenses
|
11,013
|
|
10,784
|
Other current
assets
|
2,360
|
|
2,145
|
Worksite employee
related assets
|
941,213
|
|
1,281,471
|
Total current
assets
|
1,233,558
|
|
1,535,354
|
Workers' compensation
collateral receivable
|
39,931
|
|
31,883
|
Restricted cash, cash
equivalents and investments
|
160,207
|
|
130,501
|
Property and
equipment, net
|
68,470
|
|
58,622
|
Goodwill
|
289,207
|
|
289,207
|
Other intangible
assets, net
|
27,108
|
|
31,074
|
Other
assets
|
18,444
|
|
18,502
|
Total
assets
|
$
|
1,836,925
|
|
$
|
2,095,143
|
Liabilities and
stockholders' equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
28,995
|
|
$
|
22,541
|
Accrued corporate
wages
|
31,814
|
|
30,937
|
Notes and capital
leases payable, net
|
36,718
|
|
36,559
|
Other current
liabilities
|
14,321
|
|
12,551
|
Worksite employee
related liabilities
|
934,868
|
|
1,275,995
|
Total current
liabilities
|
1,046,716
|
|
1,378,583
|
Notes and capital
leases payable, net, noncurrent
|
394,972
|
|
422,495
|
Workers' compensation
loss reserves
|
157,999
|
|
159,301
|
Deferred income
taxes
|
90,845
|
|
92,373
|
Other
liabilities
|
14,534
|
|
7,801
|
Total
liabilities
|
1,705,066
|
|
2,060,553
|
Commitments and
contingencies
|
|
|
|
Stockholders'
equity:
|
|
|
|
Preferred
stock
|
—
|
|
—
|
Common stock and
additional paid-in capital
|
567,971
|
|
535,132
|
Accumulated
deficit
|
(435,739)
|
|
(499,938)
|
Accumulated other
comprehensive loss
|
(373)
|
|
(604)
|
Total
stockholders' equity
|
131,859
|
|
34,590
|
Total liabilities
and stockholders' equity
|
$
|
1,836,925
|
|
$
|
2,095,143
|
|
TRINET GROUP,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
|
Nine Months Ended
September 30,
|
(in
thousands)
|
2017
|
|
2016
|
Operating
activities
|
|
|
|
Net income
|
$
|
111,524
|
|
$
|
38,440
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
26,177
|
|
27,810
|
Stock-based
compensation
|
21,406
|
|
20,169
|
Changes in operating
assets and liabilities:
|
|
|
|
Restricted cash and
cash equivalents
|
(45,570)
|
|
(31,409)
|
Prepaid income
taxes
|
42,448
|
|
386
|
Prepaid expenses and
other current assets
|
(961)
|
|
(5,253)
|
Workers' compensation
collateral receivable
|
(8,048)
|
|
(11,374)
|
Other assets
|
925
|
|
438
|
Accounts
payable
|
5,505
|
|
4,538
|
Accrued corporate wages
and other current liabilities
|
2,331
|
|
4,548
|
Workers' compensation
loss reserves and other non-current liabilities
|
3,574
|
|
33,510
|
Worksite employee
related assets
|
340,767
|
|
525,841
|
Worksite employee
related liabilities
|
(341,127)
|
|
(526,945)
|
Net cash provided
by operating activities
|
158,951
|
|
80,699
|
Investing
activities
|
|
|
|
Acquisitions of
businesses
|
—
|
|
(300)
|
Purchases of
marketable securities
|
—
|
|
(14,959)
|
Proceeds from
maturity of marketable securities
|
14,447
|
|
25,790
|
Acquisitions of
property and equipment
|
(29,210)
|
|
(27,942)
|
Net cash used in
investing activities
|
(14,763)
|
|
(17,411)
|
Financing
activities
|
|
|
|
Repurchase of common
stock
|
(39,347)
|
|
(43,747)
|
Proceeds from
issuance of common stock on exercised options
|
8,678
|
|
3,584
|
Proceeds from
issuance of common stock on employee stock purchase plan
|
2,441
|
|
2,304
|
Awards effectively
repurchased for required employee withholding taxes
|
(8,100)
|
|
(2,672)
|
Proceeds from
issuance of notes payable
|
—
|
|
57,978
|
Payments for
extinguishment of debt
|
—
|
|
(57,563)
|
Repayment of notes
and capital leases payable
|
(28,735)
|
|
(27,506)
|
Payment of debt
issuance costs
|
—
|
|
(1,376)
|
Net cash used in
financing activities
|
(65,063)
|
|
(68,998)
|
Effect of exchange
rate changes on cash and cash equivalents
|
398
|
|
90
|
Net increase in cash
and cash equivalents
|
79,523
|
|
(5,620)
|
Cash and cash
equivalents at beginning of period
|
184,004
|
|
166,178
|
Cash and cash
equivalents at end of period
|
$
|
263,527
|
|
$
|
160,558
|
|
|
|
|
Supplemental
disclosures of cash flow information
|
|
|
|
Interest
paid
|
$
|
12,186
|
|
$
|
11,651
|
Income taxes paid
(refunded), net
|
(138)
|
|
27,650
|
Supplemental
schedule of noncash investing and financing
activities
|
|
|
|
Payable for purchase
of property and equipment
|
$
|
2,450
|
|
$
|
1,363
|
Non-GAAP Financial Measures
In addition to financial measures presented in accordance with
GAAP, we monitor other non-GAAP financial measures that we use to
manage our business, make planning decisions, allocate resources
and as performance measures in our executive compensation plan.
These key financial measures provide an additional view of our
operational performance over the long term and provide useful
information that we use in order to maintain and grow our
business.
The presentation of these non-GAAP financial measures is used to
enhance the understanding of certain aspects of our financial
performance. It is not meant to be considered in isolation,
superior to, or as a substitute for the directly comparable
financial measures prepared in accordance with GAAP.
Non-GAAP
Measure
|
Definition
|
How We Use The
Measure
|
Net Service
Revenues
|
• Sum of professional
service revenues and Net Insurance Service Revenues, or total
revenues less insurance costs.
|
• Provides a
comparable basis of revenues on a net basis. Professional service
revenues are represented net of client payroll costs whereas
insurance service revenues are presented gross of insurance costs
for financial reporting purposes.
• Acts as the basis
to allocate resources to different functions and evaluates the
effectiveness of our business strategies by each business
function.
• Provides a measure,
among others, used in the determination of incentive compensation
for management.
|
Net Insurance
Service Revenues
|
• Insurance revenues
less insurance costs.
|
• Is a component of
Net Service Revenues.
• Provides a
comparable basis of revenues on a net basis. Professional service
revenues are represented net of client payroll costs whereas
insurance service revenues are presented gross of insurance costs
for financial reporting purposes. Promotes an understanding
of our insurance services business by evaluating insurance service
revenues net of our WSE related costs which are substantially
pass-through for the benefit of our WSEs. Under GAAP, insurance
service revenues and costs are recorded gross as we have latitude
in establishing the price, service and supplier
specifications.
|
Adjusted
EBITDA
|
• Net income,
excluding the effects of:
- income tax
provision, - interest
expense, -
depreciation, - amortization of
intangible assets, and -
stock-based compensation expense.
|
• Provides
period-to-period comparisons on a consistent basis and an
understanding as to how our management evaluates the effectiveness
of our business strategies by excluding certain non-cash charges
such as depreciation and amortization, and stock-based compensation
recognized based on the estimated fair values. We believe these
charges are not directly resulting from our core operations or
indicative of our ongoing operations.
• Enhances
comparisons to prior periods and, accordingly, facilitates the
development of future projections and earnings growth
prospects.
• Provides a measure,
among others, used in the determination of incentive compensation
for management.
|
Adjusted Net
Income
|
• Net income,
excluding the effects of:
- effective income tax
rate(1), -
stock-based compensation, -
amortization of intangible assets, - non-cash interest expense(2),
and - the income tax effect (at
our effective tax rate(1)) of these pre-tax
adjustments.
|
• Provides
information to our stockholders and board of directors to
understand how our management evaluates our business, to monitor
and evaluate our operating results, and analyze profitability of
our ongoing operations and trends on a consistent basis by
excluding certain non-cash charges.
|
|
|
(1)
|
We have adjusted the
non-GAAP effective tax rate to 40.5% for 2017 from 42.5% for 2016,
due to a decrease in state income taxes from an increase in
excludable income for state income tax purposes. These
non-GAAP effective tax rates exclude the income tax impact from
stock-based compensation and changes in uncertain tax
positions.
|
|
|
(2)
|
Non-cash interest
expense represents amortization and write-off of our debt issuance
costs.
|
Reconciliation of GAAP to Non-GAAP Measures
The table below presents a reconciliation of Total revenues to
Net Service Revenues:
|
Three Months
Ended September 30,
|
|
Change
2017 vs. 2016
|
|
Nine Months
Ended September 30,
|
|
Change
2017 vs. 2016
|
(in
thousands)
|
2017
|
|
2016
|
|
$
|
|
%
|
|
2017
|
|
2016
|
|
$
|
|
%
|
Total
revenues
|
$
|
819,293
|
|
$
|
770,457
|
|
$
|
48,836
|
|
6%
|
|
$
|
2,427,444
|
|
$
|
2,249,242
|
|
$
|
178,202
|
|
8%
|
Less: Insurance
costs
|
613,397
|
|
609,422
|
|
3,975
|
|
1
|
|
1,821,574
|
|
1,775,784
|
|
45,790
|
|
3
|
Net Service
Revenues
|
$
|
205,896
|
|
$
|
161,035
|
|
$
|
44,861
|
|
28%
|
|
$
|
605,870
|
|
$
|
473,458
|
|
$
|
132,412
|
|
28%
|
The table below presents a reconciliation of Insurance service
revenues to Net Insurance Service Revenues:
|
Three Months
Ended September 30,
|
|
Change
2017 vs. 2016
|
|
Nine Months
Ended September 30,
|
|
Change
2017 vs. 2016
|
(in
thousands)
|
2017
|
|
2016
|
|
$
|
|
%
|
|
2017
|
|
2016
|
|
$
|
|
%
|
Insurance service
revenues
|
$
|
706,763
|
|
$
|
659,964
|
|
$
|
46,799
|
|
7%
|
|
$
|
2,086,151
|
|
$
|
1,916,753
|
|
$
|
169,398
|
|
9%
|
Less: Insurance
costs
|
613,397
|
|
609,422
|
|
3,975
|
|
1
|
|
1,821,574
|
|
1,775,784
|
|
45,790
|
|
3
|
Net Insurance
Service Revenues
|
$
|
93,366
|
|
$
|
50,542
|
|
$
|
42,824
|
|
85%
|
|
$
|
264,577
|
|
$
|
140,969
|
|
$
|
123,608
|
|
88%
|
The table below presents a reconciliation of Net income to
Adjusted EBITDA:
|
Three Months
Ended September 30,
|
|
Nine Months
Ended September 30,
|
(in
thousands)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net income
|
$
|
42,836
|
|
$
|
14,581
|
|
$
|
111,524
|
|
$
|
38,440
|
Provision for income
taxes
|
15,268
|
|
9,107
|
|
43,719
|
|
27,558
|
Stock-based
compensation
|
7,700
|
|
6,264
|
|
21,406
|
|
20,169
|
Interest expense and
bank fees
|
5,425
|
|
5,597
|
|
15,030
|
|
15,677
|
Depreciation
|
7,754
|
|
5,188
|
|
20,353
|
|
13,663
|
Amortization of
intangible assets
|
1,300
|
|
4,662
|
|
3,966
|
|
14,647
|
Adjusted
EBITDA
|
$
|
80,283
|
|
$
|
45,399
|
|
$
|
215,998
|
|
$
|
130,154
|
The table below presents a reconciliation of Net income to
Adjusted Net Income and Adjusted Net Income per share -
diluted:
|
Three Months
Ended September 30,
|
|
Nine Months
Ended September 30,
|
(in
thousands)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net income
|
$
|
42,836
|
|
$
|
14,581
|
|
$
|
111,524
|
|
$
|
38,440
|
Effective income tax
rate adjustment
|
(8,264)
|
|
(960)
|
|
(19,154)
|
|
(491)
|
Stock-based
compensation
|
7,700
|
|
6,264
|
|
21,406
|
|
20,169
|
Amortization of
intangible assets
|
1,300
|
|
4,662
|
|
3,966
|
|
14,647
|
Non-cash interest
expense
|
622
|
|
1,559
|
|
1,846
|
|
3,183
|
Income tax impact of
pre-tax adjustments
|
(3,897)
|
|
(5,306)
|
|
(11,023)
|
|
(16,150)
|
Adjusted Net
Income
|
$
|
40,297
|
|
$
|
20,800
|
|
$
|
108,565
|
|
$
|
59,798
|
GAAP Weighted
average shares of common stock - diluted
|
71,500
|
|
71,965
|
|
71,139
|
|
72,126
|
Adjusted Net
Income per share - diluted
|
$
|
0.56
|
|
$
|
0.29
|
|
$
|
1.53
|
|
$
|
0.83
|
View original
content:http://www.prnewswire.com/news-releases/trinet-announces-third-quarter-2017-results-300548859.html
SOURCE TriNet Group, Inc.