You are given a text that consists of multiple sentences. Your task is to perform abstractive summarization on this text. Use your understanding of the content to express the main ideas and crucial details in a shorter, coherent, and natural sounding text. 
Text: We appreciate you joining us this evening.
Let me begin by outlining our plan for this evening's call.
First, Paul will provide an update on our business and operations including how the extraordinary efforts of our corporate employees in our business model has benefited our clients and our worksite employees and their families during the COVID-19 pandemic.
He will also discuss the impact of both COVID-19 restrictions and the resulting stimulus packages on our business to date and the potential impact going forward.
This discussion will include the range of possible outcomes on the key metrics and drivers of our business.
I will then briefly discuss our first quarter financial results, provide an update on our balance sheet and liquidity and provide our guidance for Q2 in our updated guidance for the full-year 2020.
We will then end the call with a question-and-answer session.
In addition, some of our discussion may include non-GAAP financial measures.
Before I discuss our results and outlook for Insperity, I'd like to say our hearts go out to all those who have lost loved ones and are suffering the most from this sudden and unexpected health crisis.
Our thoughts and prayers are also with those feeling the severe economic effects that have ensued as this crisis continues to run its course.
Insperity is able to see firsthand the impact of this health and economic calamity on the small- and medium-sized businesses we serve.
Our mission to help them succeed so communities prosper has never been more critical to these clients, their employees and families.
So I'll begin today's call with some brief comments about our solid first quarter results, highlighting two important outcomes which preceded the COVID-19 outbreak.
I'll follow with a discussion of our quick and effective response to the health and economic crisis since mid-March, including detailed metrics reflecting the effects on our client base.
I'll finish my comments today describing the economic climate and considerations over the balance of the year that form the basis for our updated guidance we are providing today.
First quarter sales were 122% of budget, representing a 25% increase over the same period last year.
These results were driven by a 13% increase in trained Business Performance Advisors and a 10% improvement in sales efficiency.
Both core and mid-market sales were substantially over budget.
Mid-market sales were particularly impressive throughout the period, core sales exceeded forecast for the full quarter despite a fall-off in March to 83% of budget as the pandemic escalated.
As a reminder worksite employees sold, generally become paid worksite employees and flow into revenues over the following few months.
The other important development evident in the first quarter results is the improvement in our benefit plan as the elevated number of large claims we experienced last year continue to decline toward historical levels and our benefits allocations continue to outpace our expectations.
This combination means we came out of Q1 with our health plan in good shape as Doug will describe further in a few minutes.
I'd like to provide some detail regarding our initial response in March as the COVID-19 health crisis emerged and quickly became an economic calamity.
Our decisive response proved to be critically important for our clients, their employees and families.
We believe our rapid and pivotal reaction to the pandemic, combined with the quality of our client base has caused Insperity to experience a relatively less severe impact in layoffs and ultimately in paid worksite employees than would have otherwise occurred.
The best empirical evidence is our paid worksite employee decline in April, which was only 3.3% lower than March.
Allow me to provide some context for this with a bit of a chronology.
In mid-March as cancellation of public events were announced it became evident that this COVID-19 pandemic wsa escalating and morphing into a significant economic disruption.
We probably transitioned to work from home environment in order to protect our own employees and their families.
Our experience over the years with hurricanes and other disasters proved beneficial as we were totally prepared to work remotely on a broad basis with 93% of our employees working at home and only 7% of employees with the need to be at the workplace to accomplish their responsibilities.
Our workload with clients was increasing dramatically at this point.
The initial efforts revolved around policy changes, helping clients transition to working from home employee communication and regulatory changes.
The response to this health and economic emergency required prompt, thoughtful and well executed HR Solutions, which is right up our alley.
As the gravity of this situation set and it became apparent our small- and mid-sized business clients would be facing a firestorm and would need immediately help evaluating alternatives to make operational changes.
These options, including reducing or furloughing staff, lowering pay rates and adjusting benefit plans to name a few.
We immediately began tracking these operational changes daily through new reporting, which has been invaluable and providing a clear picture of how clients reacted to this crisis.
This reporting is also been vital to inform our forecasting of future scenarios.
Our daily reporting for March 9th forward provides real-time information on how our clients have responded to the pandemic in adjusting staffing levels.
Since that time, we have been watching daily changes in layoffs -- temporary layoffs or furloughs and rehires directly associated with the economic disruption.
We've also observed trends and more routine voluntary and involuntary employee terminations and hiring within the client base.
On Monday, March 16, we decided to form the Insperity business continuity support team to address escalated complex client request.
Within days this team comprised of professionals from human resources, finance, regulatory and other disciplines was fully functional, helping clients quickly and effectively make operational changes and obtain critical resources to navigate through the current health and economic crisis.
Due to our ongoing government affairs efforts, Insperity was on the ground involved in Washington as the Senate and the administration were addressing the needs of small businesses, devising and drafting the CARES Act.
Our government affairs team was closely monitoring the CARES Act and provided valuable real-time feedback to us as the Paycheck Protection Program was developed.
Our involved in at this level, allowed us to be ahead of the curve, which enabled us to meet our goal of helping our clients be in a position to apply for paycheck protection loans when the program was launched on April 3.
One key element in this effort was providing the reports required with the loan application to substantiate and validate the eligible loan amount.
The CARES Act was signed into law by the President on Friday, March 27.
And on Sunday, the 29th, I was reviewing the first version of these complicated reports.
Two days later, these reports became available on Insperity Premier and by Friday, the first day the banks began accepting applications, over 67% of Insperity clients had to run the necessary reports to submit their applications.
Last week, we conducted a client survey to obtain important feedback on business owner sentiment and on their outlook for the near-term and the balance of the year.
In this survey also released today, we also included questions regarding applications and funding of these loans, because of the direct effect on temporary layoffs and expected rate hires.
According to our survey, approximately 80% of our clients applied for a loan under the Paycheck Protection Program.
We are very pleased for our clients when survey results indicated 59% of these applicants receive their PPP funding in the first round before funds ran out on April 16.
This compares very favorably against the National Federation of Independent Business survey, which reported 20% of respondents had received their funding.
It appears our goal to help our clients obtain these funds to sustain their employees and businesses was very successful.
Our daily tracking data also aligns with our survey results.
Since March 9, through the end of April, 25% of our clients have reported layoffs totaling approximately 22,000 employees or about 9% of the total worksite employee base.
35% of these layoffs were processed as permanent layoffs.
In 65% as furloughs or temporary layoffs expecting to be rehired in the coming months.
Approximately 15,000 of these layoffs were reported before the end of March with the remaining 7,000 in April as layoffs moderated.
Over the same period, we've already seen approximately 2,200 employees or 10% of the total rehired, which we believe is somewhat due to our early success with clients in the Paycheck Protection Program.
Keep in mind these terminated employees typically get a final paycheck after the reported layoff and rehires get paid on the next pay date.
So there is a lag in the paid worksite employee impact from both types of these reported changes.
You also have to factor in paid worksite employees pluses and minuses from termitating clients, new clients, voluntary and involuntary terminations and regular hiring in the base.
With all these factors in and finalized at the end of April, the result was the 3.3% reduction in paid worksite employees for the one -- that I mentioned earlier.
We expect similar -- a similar reduction in May based upon a comparable analysis as the balance of layoffs and furloughs from April come out of the paid worksite employee count.
During this period, we also converted our entire sales team of Business Performance Advisors to the sell from home.
It's been amazing to watch this valiant effort to keep sales moving through virtual discovery and closing costs.
While sales activity has decreased significantly, those that are going through the process seem to be more qualified and appear to have a greater sense of urgency.
Another aspect of our business that we watch very closely was client terminations in bad debts from financial defaults.
We're very pleased to say at this time, we've not seen a material increase in these key metrics, although it stands to reason that these issues could increase if the recovery is weak or delayed.
Now at this point, I'd like to address the economic climate and considerations we've worked through driving the range of our expectations implied within the guidance we're providing today.
The impact of this ongoing pandemic on Insperity will be driven largely by the staffing levels maintained by our small business client base since we earn our fees on a per worksite employee per month basis.
Over the balance of the year, we expect staffing levels in our client base to be primarily driven in the near term by the effectiveness of the Paycheck Protection Program combined with how successful and widespread the restart of the economy turns out to be.
The second significant effect we expect will come from a change in the pattern of our direct cost due to healthcare and to a lesser extent workers' compensation trends.
We expect an unusual pattern within our direct cost, which we believe will begin with lower cost near term, while many employees are working from home deferring elective procedures and using telemedicine.
When they -- we then expect potentially higher than normal cost once employees are back at work catch up on elective procedures and have possible worsen chronic conditions from a period of lack of care or treatment.
Our outlook determining the range of our guidance is based upon a range of economic conditions that does not include a V-shaped recovery in our high case nor does it include a second wave of COVID-19 causing a second shut down in the low case.
So the high end of our range is appropriately conservative, assuming a slow but steady improvement in the economy as States reopen and activity resumes over several months.
We also assume the Paycheck Protection Program has a positive effect on rehiring our furloughed employees however, at a level reflecting the uncertainty our clients are facing.
In this case, we assume about 65% of the furloughed employees would be rehired over the next couple of months in time for clients to include them in their calculation for loan forgiveness of their PPP loan.
Even though this is the high case, we are assuming 35% of furloughed employees did not return within that period as Business Leader stretch out their funds allowing time for the economic activity to increase.
New client sales considered within the high end of our guidance, assumes sales at 80% of our original budget over the balance of the year.
This includes lower sales in Q2 and Q3, and improving to more normalized levels in the fourth quarter.
Client terminations are assumed to be slightly elevated over the balance of this year, even in this high-case scenario.
We have included an approximately 15% increase in worksite employee attrition from client terminations over our original budget.
Now in our low-case scenario, we are assuming an economic environment where government mandated shutdowns continue longer, reopening proves more difficult and it takes longer for demand to resume.
In this environment, we assume layoffs persist through the second quarter and are only marginally offset by rehires related to the Paycheck Protection Program.
This case assumes clients most affected by the pandemic, stretch out their PPP funds and don't rehire most of the furloughed staff and eventually convert a high number of these employees into permanent layoffs.
At the low end of our range, we also assume this slower recovery leads to delayed decisions on new sales and efficiency is lower throughout the balance of the year.
In this case sales results are assumed to be approximately 60% of our original budget over the last three quarters in the year.
The low end of our range also anticipates a 20% higher level of worksite employee attrition due to client terminations above our original budget.
Full-year retention is expected to be 80% in this scenario.
Both scenarios include a higher gross profit per worksite employees in our original budget due to the outperformance in the first quarter, combined with the pattern of direct cost we expect due to COVID-19.
We expect direct cost could be materially lower in the short term, but it is unclear how these costs will rebound or what unexpected cost may arise thereafter.
Therefore, these scenarios represent more of a shift of cost from the second into the thid and four quarters, and only a relatively small reduction in total cost over the balance of the year.
Our operating plan for the balance of the year, anticipate a continued elevated level of services needed by our clients, managing through a safe return to work plan or responding to whatever this situation deals up next.
At this point, our plan is to maintain our current corporate staff level to handle the increased workload.
We also intend to continue to add to our Business Performance Advisor team over the balance of the year, however, allowing the growth rate to moderate to high-single digits.
So we believe, we've whether this unprecedented storm well, primarily due to our quality client base, made up of the best small- to medium-size businesses in America and an amazing team of employees at Insperity.
Now before I pass the call on to Doug, I would like to tell a quick story that explains why I'm so passionate about small business owners and the role they play in a recovery like the one we need right now.
All four of my grandparents emigrated to the United States during the early 1900s from Romania.
Their families pulled their funds together to send each of them to the land of opportunity which was not uncommon at that time.
They arrived with little or no money, spoke very little English, but had the dream for better life and the work ethic to go with it.
One of my grandfather's was only 16 years old when he arrived in 1909.
He was very entrepreneurial, and told me about many business he started from a grocery store with the hair salon up above to a great farm in Pennsylvania.
But my favorite story about him, I only learned at is funeral.
When an elderly woman, I did not know grab my arm to tell me about my grandfather's heroism during the depression.
It appears my grandfather played a major role in his community keeping people alive with his grocery store, extending credit to hungry families and working with his suppliers to stretch every dollar.
She said, mine was one of those families.
When I watch our clients today, I'm reminded that the entrepreneurial spirit is alive and well.
Our client survey routinely ask our clients major concerns.
It was no surprise to see the top concern in this survey were sustaining their business through this economic slowdown, but right behind that was employee well-being, next was returning to work safely followed by employee engagement, sustaining relationships and culture.
Strikingly, quite a bit further down the list was meeting terms for loan forgiveness.
We are here at Insperity to support these incredible people that play such an important role in our communities and our nation as a whole.
If our recovery from this pandemic and its after-effects is dependent on these small- and medium-sized business owners and it is my money's on them and we will be here helping every step of the way.
At this time, I'd like to pass the call on to Doug.
Now let's discuss some of the details of our first quarter results.
We reported Q1 adjusted earnings per share of $1.70 at the high end of our forecasted range.
Adjusted EBITDA totaled $101 million for the quarter.
Average paid worksite employees increased by 5.5% over Q1 of 2019 to just over 238,000.
This quarters growth reflected a higher-than-expected level of worksite employees paid from new sales coming off of the successful extension of our fall sales campaign.
However, our Q1 growth was dampened by lower-than-expected net gains in our client base.
Gross profit increased by 3.2% over the first quarter of 2019.
And as you may recall from our earlier discussions, the year-over-year comparison was impacted by our favorable benefit cost trend in Q1 of the prior year.
However, we effectively managed overall gross profit for Q1 of this year above budgeted levels as a results from both our benefits and workers compensation programs were favorable.
As for large healthcare claim activity, we continue to see a decline in the number of claims over $100,000 since the initial spike in the second quarter of 2019, although it's still slightly elevated from a historical perspective.
Also our Q1 claim trend associated with normal smaller healthcare claims came in near targeted levels.
Now an outlier in Q1 was a shift in the timing of approximately $4 million of pharmacy costs into the quarter.
As you may be aware, as a result of the COVID-19 stay-at-home orders, many benefit plan participants across the country accelerated their pharmacy refills with many extending the refill period from 30 to 90 days.
The impact of the -- the impact of insurance companies relaxing their normal requirements around this area, ultimately impacting the cost of all planed sponsors.
iI the health plan like ours, this essentially accelerated what would have been Q2 and Q3 pharmacy costs into Q1.
Other than this factor, we do not believe our Q1 benefit costs were impacted by COVID-19 due to its occurrence late in the quarter.
So all things combine the good news is that benefit costs for Q1 of 2020 came in favorable when compared to our budget in spite of the additional $4 million of pharmacy costs.
Now on the pricing side, our benefit allocations were also favorable.
So in conclusion, we exited the quarter ahead of plan in our benefits area.
Our first quarter adjusted operating expenses increased 5.3% over Q1 of 2019 below budgeted levels.
It's important to note that we continue to invest in our growth as we increased our trained BPA count by 13% over Q1 of 2019.
And in a few minutes, I'll provide more detail behind our current thoughts on our operating plan in light of the current business environment.
Finally, our Q1 effective tax rate came in at expected 27%, which was significantly higher than the 12% rate in Q1 of 2019 due to a lower tax benefit associated with the vesting of long-term incentive stock awards in Q1 of this year.
Now let's discuss our cash flow and liquidity.
During the quarter, we repurchased a total of 878,000 shares at a cost of $61 million.
These repurchases included those shares bought in the open market and under our corporate 10b5-1 plan in mid-February and early March and shares repurchased in connection with tax withholdings upon the vesting of employee restricted shares.
We also paid $16 million in cash dividends under our regular dividend program and invested $16 million in capital expenditures.
While we continue to have a strong balance sheet and liquidity position in the latter part of the quarter, we drew down $100 million from our credit facility to provide further flexibility in this uncertain business environment.
So we ended the quarter with $167 million of adjusted cash and $130 million available under our $500 million credit facility.
Now as far as our guidance for the remainder of 2020, let's begin by putting it into context.
As you know, events continue to unfold almost daily, there remains a high level of uncertainty on the short-term and long-term impact of the pandemic on the economy in the small business community.
As a result, this guidance will reflect a wider range of possibilities the net provided in the past.
And based on the details that Paul just shared on our expected worksite employee levels, we are now forecasting a 1% to 5% decrease in the average number of paid worksite employees for the Q2 stand-alone quarter and a 1% to 6% decrease for the full-year 2020 as compared to the 2019 periods.
For the full-year 2020, we are forecasting adjusted EBITDA in a range of $215 million to $250 million, which is flat to down 14% from 2019.
As for adjusted EPS, we are forecasting a range of $3.19 to $3.86.
And this assumes an effective tax rate of 28% in 2020 as compared to a rate of 20% in 2019.
Now the quarterly earnings pattern is expected to be different this year due to the factors surrounding the COVID-19 pandemic.
The second quarter is expected to be positively impacted because we believe the stay-at-home order will result in lower healthcare utilization, including the delay or cancellation of elective procedures and a lower level of office and emergency room visits.
However, over the latter half of 2020, as stay-at-home orders are relaxed, costs may be elevated to include the restoration of some of the deferred elective care, costs associated with participants with chronic conditions that miss treatments, COVID-related testing and treatment costs and a potential increase in COBRA participation.
As for our workers' compensation area, we also expect to see a similar quarterly pattern, although, at a much smaller level that will develop over a longer period of time.
As for our operating costs, our guidance reflects the following actions based upon our current expectations of the impact of COVID-19 pandemic and related economic recovery.
We intend to continue to grow the number of Business Performance Advisors as we position ourselves to both muscle through this challenging time and position ourselves for the long term.
We have currently decided to postpone the opening of two sales offices into 2021, which will now result in the opening of five sales offices in 2020.
Marketing costs have been reduced for the reduction and cancellation of promotional events, including the Insperity Invitational.
In addition to the cancellation of travel due to the stay-at-home orders, we have replaced a significant portion of our in-person training with online meetings.
And at this point with the exception of Business Performance Advisors, we intend to hold our corporate headcount flat as increased service demands offset any reductions that would have been commensurate with the lower worksite employee level.
Now as for our Q2 earnings guidance, we are forecasting adjusted EBITDA range of $65 million to $79 million, a 15% to 39% increase over Q2 of 2019 and adjusted earnings per share in a range of $1 to $1.29, an increase of 23% to 55%.

user
compname posts quarterly adjusted earnings per share of $1.70.
q1 adjusted earnings per share $1.70.
q1 diluted earnings per share and adjusted earnings per share of $1.58 and $1.70, respectively.
sees q2 adjusted earnings per share $1.02-$1.29.
sees fy adjusted earnings per share $3.19-$3.86.
ended quarter with $167 million of adjusted cash and $130 million available under $500 million credit facility.

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