Stadium Capital Management Responds to Insperity Inc (NSP)’s Comments to Their Letter

Alexander Medina Seaver‘s Stadium Capital Management has released another letter to the shareholders of  Insperity Inc (NYSE:NSP), a week after its previous letter in which the fund discussed the main issues of the company. The new letter has been issued as a reply of the company’s management to Stadium’s previous comments.

Insperity Inc (NYSE:NSP)

In a press release, Insperity corrected some of the facts presented by Stadium as inaccurate, according to the company. Among other things, Insperity Inc (NYSE:NSP) stated that the fund mentioned an incorrect information regarding the adjusted EBITDA, which has gone up by 12% in the 2011-2013 period, and not declined by 6% as mentioned in the letter. Moreover, the fund did not consider Insperity’s long-term strategic plan, as well as many corporate governance initiatives launched over the past couple of years.

“The Board and management are concerned that the company’s largest stockholder has chosen to express a negative view of Insperity based on flawed analysis and Stadium Capital’s unwillingness to fully discuss these issues, preferring instead to issue immediate demands and arbitrary deadlines. Your perception of Insperity, our corporate governance and the integrity and independence of the Board as outlined in your letters does not line up with the reality of how Insperity is managed,” the company said.

In its new letter, Stadium said that they consider that Insperity is not on the right course regarding its 2011 operating plan. The implied EBITDA for 2015, stands at around $195-250 million, significantly above the company’s latest guidance in the range of $76 and $90.5 million.

“We certainly do not believe management can triple EBITDA between 2014 and 2015, nor do we believe results over the past several years indicate that management is on a reasonable path to achieve this goal even if given more time. In light of these facts, we remain astonished that management and the Board can apparently remain “optimistic” about their plan,” Stadium said.

Moreover, in Stadium’s opinion, the company’s governance is flawed and the Board is not committed and is not capable of maximizing value for shareholders.

The fund also said that the response offered by Insperity Inc (NYSE:NSP)’s management reinforces their conviction that the company requires a change and that a direct and active involvement of stakeholders is needed, as well as a rejection of the status-quo.

“For this reason, we intend to vote AGAINST Insperity’s current Board slate and urge our fellow stockholders to consider what we have outlined above and in previous letters when they cast their votes in the coming weeks,” the letter concluded.

In its response, Insperity Inc (NYSE:NSP) also mentioned the fact that they offered Stadium to join the board of the company. The fund, however, stated that the offer was rejected because they would have received only one seat, which they consider as insufficient in order to conduct the required changes and to increase shareholder value.

The full text of the Stadium’s second letter can be accessed below:

Stadium Capital Letter to Insperity Shareholders_2

Stadium owns around 2.32 million shares of Insperity, equal to 9.1% of the outstanding stock, which makes the fund the largest shareholder of the company.

Disclosure: none

Recommended Reading:

Top Five Hydrocommerce Picks of Summit Global Management

Three Banks Stocks That Jim Simons and Insiders Like

Accipiter Capital Management Cuts Stake in Triple-S Management Corp. (GTS) to Below 5%

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!