Good morning. My name is Jay, and I will be your conference operator for today. I would like to welcome everyone to the Insperity Second Quarter 2019 Earnings Call. [Operator Instructions].
At this time, I would like to introduce today's speakers. Joining us are Paul Sarvadi, Chairman of the Board and Chief Executive Officer; and Douglas Sharp, Senior Vice President of Finance, Chief Financial Officer and Treasurer.
At this time, I'd like to turn the call over to Douglas Sharp. Mr. Sharp, please go ahead.
Douglas S. Sharp
Thank you. We appreciate you joining us this morning. Let me begin by outlining our plan for this morning's call. First, I'm going to discuss the details behind our second quarter 2019 financial results. Paul will then comment on the key drivers behind our Q2 results and our plans for the remainder of the year. I will return to provide our financial guidance for the third quarter and an update to the full year 2019 guidance. We will then end the call with a question-and-answer session.
Now, before I begin, I would like to remind you that Mr. Sarvadi or myself may make forward-looking statements during today's call, which are subject to risks, uncertainties and assumptions. In addition, some of our discussion may include non-GAAP financial measures. For a more detailed discussion of the risks and uncertainties that could cause actual results to differ materially from any forward-looking statements, and reconciliations of non-GAAP financial measures, please see the Company's public filings, including the Form 8-K filed today, which are available on our website.
Now let's discuss our second quarter results in which we achieved $0.83 in adjusted EPS, a 22% increase over Q2 of 2018 and adjusted EBITDA of $56.7 million, also an increase of 22%. As for the details, average paid worksite employees increased 14% over Q2 of 2018, resulting from new clients sales driven by an 11% increase in the average number of Business Performance Advisors.
Client retention averaged just above 99% during the quarter near our historical high level. Net gains in our client base were lower than expected, particularly during the month of June as a result of less hiring of full time and seasonal employees by our clients. During the second quarter, net gains in our client base were down by 15% from Q2 of 2018, even though the client base is significantly larger. Gross profit increased by 12% over Q2 of 2018 and included higher than forecasted benefit costs, partially offset by favorable results in our workers compensation program and higher pricing. The higher benefit costs resulted from large health care claim activity, in which these claims were approximately 22% of total health care claims during Q2, compared to normal and recent historical levels of 18% to 20%.
Now, while the higher than expected large claim activity may happen in a quarter from time-to-time with a plan of our size. A detailed analysis of the underlying Q2 claims data, benefit plan participant data and plan migration still indicates the full
Douglas S. Sharp
Senior Vice President of Finance, Chief Financial Officer and Treasurer
Paul J. Sarvadi
Chairman, Management Director and Chief Executive Officer
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