On Monday, Insperity, Inc. (NYSE:NSP) reported its first quarter earnings and discussed the following topics in its earnings conference call. Take a look.
Tobey Sommer – SunTrust: Given the context of your prepared remarks and the cautious data you are getting out of your customer base as it regards to the economy, what are the internal improvements and as you optimize the new business model and the approach with the sales force, how are you going about trying to tweak your sales volume growth higher. Is it akin to the historical method of kind of increasing the sales force itself or the other levers you’re trying to pull?
Paul J. Sarvadi – Chairman and CEO: We’re really focused on the improving sales efficiency and as we forecasted for the year, we felt like it would be going up naturally based on the branding and some of the things we’re doing, but the new habits and new first call training and we’re basically retraining the entire group of Business Performance Advisors to a new approach and those elements of the sales process from the prospecting to the first call to what we call validation step in the sales process to closing all those elements, you have to go through training, developing new habits et cetera and we’re migrating through that very well. We’re validating that, new habits are being learned and put into practice and it’s really exciting to see that even with all that level of change going on, we’re continuing to see some improvement over last year. There is a delay though between when you get all those elements in place before you start to really see that efficiency ramp up on an individual level and then of course across the whole company and that’s what we’ve expecting to see in the last phase which is our efficiency and growth acceleration phase which is what our fall campaign will be about this year and we hope that will lead to a nice step up at year-end in a whole different level of growth going forward.
Tobey Sommer – SunTrust: Paul, can I ask you a question about the adjacent business, where are you seeing the best traction and conversely maybe where are you little bit more challenged? Do have an outlook to continue to add to those externally through M&A or more internal development?
Paul J. Sarvadi – Chairman and CEO: We are certainly within the terms of which ABUs are doing better than others. We’ve got a lot of great things happen in each one of them. They aren’t sent for businesses have to be worked on own issues within each one, but the commonality in terms of strategy is getting to this point where on every first call that our Business Performance Advisors are on that they are making a multiproduct recommendation at the end that could involve whatever set of services meets that particular client’s immediately need. So we’re seeing that begin to happen now and it’s clearly exciting when each of our sales, Business Performance Advisors come out of a call and they are recommending, as an example, they may recommend say time and attendance and expense management, because those are cost containment or cost reduction solutions and that cost savings there would help make the Workforce Optimization solution more viable for that client so they might recommended a three product solution. Once they make that recommendation there are new steps in the sales process where demos are done on the time and attendance, and expense management solutions so that time they come back in with the Workforce Optimization, proposally you have a proposal for combined solution that puts together the total picture of the cost savings from the ABU recommendations against the investment made in Workforce Optimization. So, there are some new scales around that are being put to work and we are seeing that really come together, but like any new habit you have to do it, and then do it enough to gain proficiency then it becomes in nature and you become more efficient. So, we are getting traction on each of the ABUs to some degree, the ones that are moving on the best I think would be the more cost savings side to use – that’s why I used the example I just used. So, time and attendance, expense management, but people are starting to understand very well how, for example, the 401K plan as a Bundle Plus solution is such a tremendous value add for the client owner that it builds momentum and trust in terms of going through the demo of our new retirement services center which is part of the employee service center and sync something tangible. This whole idea of demoing the employee service center and demoing the retirement services center, those kind of things make Workforce Optimization more tangible and when you offer that combination for variety of services together with Workforce Optimization we just expect that’s going to achieve higher sales efficiency on our core service plus additional sales for each of those adjacent businesses.
James Macdonald – First Analysis Securities Corp.: I think I might have missed it, but could you tell me the number of trained salesmen you have now and kind of what your expectation is for that change throughout the year?
Paul J. Sarvadi – Chairman and CEO: It’s at about 260, 261 something like that, and we are going to make sure it stays at that level. We might ramp it up here, but not much. Again, this is a proficiency stage, we want to make sure people are doing what they are supposed to be doing, and they are not picking up the new habits. We’re gaining some natural efficiency year-over-year because even though we’re 9% down in number of Business Performance Advisors from a year ago, but we’re up a little from say from the fourth quarter. So, we’ll probably stay in about that same range and continue the efficiency gain that we have, but as things move in the right direction, all the training is validated, we’ll get back to really growing that number in the not too distant future.
James Macdonald – First Analysis Securities Corp.: So, you don’t see any issues expanding that or any high turnover in the sales force?
Paul J. Sarvadi – Chairman and CEO: No, sure don’t. I think we’re doing really well, right there, right now and people are really engaged and learning and I think we have our arms around and making sure that in the recruiting process we have the right type of person. We’ve got that profile really indentified well and this is an exciting career. I think our recruiting, even the new branding around and what we do and how we do it and how this world has changed is an exciting opportunity for people who really love to help businesses succeed, and so we’re finding it really attracting and bringing on a real high quality individual and I really think we’re in a better position than ever on growing the sales force once we’re ready to do so.
James Macdonald – First Analysis Securities Corp.: On the ABUs just another quick question. So, it sounds like the growth there is really a 2013 maybe type of story, but – and it also sounds like you’re still investing pretty heavily in them. Can you talk about how much extra earnings drag you have this year versus say last year for the ABUs?
Paul J. Sarvadi – Chairman and CEO: I think we talked about that in our last call. I think the real important thing to remember is that the investment made there is also an investment in growing the Workforce Optimization business faster. The whole idea of having these ABUs available, these other offering is to increase sales efficiency, our Workforce Optimization. We felt like it was important to show both of those, but once an investment in growth and the other, we were I think – Doug probably has exact numbers, but we were about $0.15 or something like that last year in terms of an investment ABUs and we said it would be $0.17 to $0.20 or something like that for this year. It’s going to go up for this year as you observe, but we’re expecting the pay off for that ultimately will turn — as those will turn profitable, so we will recover that in the future but more importantly, that becomes faster worksite employee growth and Workforce Optimization systemically on a going-forward basis and that’s what we’re really after by that investment.