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ADMINISTAFF COMMENTS ON ALLIANCE RESULTS, FUNDAMENTALS AND Q3 EARNINGS

HOUSTON, TX – September 25, 1998 – Administaff, Inc. (NYSE: ASF), a leading Professional Employer Organization (PEO), today announced the initial results of its marketing alliance with American Express Travel Related Services Company, Inc., announced earlier this year. Under this agreement, American Express is utilizing its resources to generate appointments with prospects for the company's services.

"The initial activities of the American Express relationship, which commenced in the second quarter, have increased our first call activity per salesperson by approximately 40% over the first quarter of 1998," said Paul J. Sarvadi, president and chief executive officer of Administaff. "A primary goal of this relationship is to develop a significant and more efficient source of prospects for our sales force, and we are pleased with the early results in this regard. The alliance is proving to be an excellent addition to our already solid growth plan."

The first 1,600 qualified appointments completed by Administaff have confirmed that the characteristics of these prospects fit the profile of the company's target market. Historically, the company has received a census, which constitutes an opportunity to bid on the client's business, on over 40% of qualified appointments, and the company has generated, on average, 3 to 3.5 new worksite employees per census received. Richard G. Rawson, Administaff executive vice president of administration and chief financial officer, added, "Based on this initial activity and our historical sales conversion rates, we expect this relationship to provide incremental unit growth beyond our current organic growth model, which would allow the company to experience revenue growth rates consistent with those experienced in 1998 on a significantly higher revenue base." Rawson also commented, "The pricing on the accounts sold so far through this relationship has been consistent with our ongoing sales efforts."

The company also stated that it is comfortable with consensus earnings estimates for the third quarter of 1998, and expects to report earnings in the range of $0.25 to $0.27 per share (diluted). Earnings for the third quarter are expected to be released on November 2, 1998.

The company has scheduled a conference call for Friday, September 25, 1998 at 11:00 EDT to discuss the American Express alliance, the company's expansion plans, overall growth rate and near-term profitability. To participate, call 1-800-360-0565 and ask for the Administaff conference call.

Administaff is one of the nation's leading Professional Employer Organizations, providing a comprehensive Personnel Management System that encompasses a broad range of services, including benefits and payroll administration, medical and workers' compensation insurance programs, personnel records management, employer liability management, employee recruiting and selection, performance management, and performance improvement services to small- and medium-sized businesses. Administaff has 22 offices in 14 major markets and serves clients and worksite employees throughout the United States.


(NOTE. The statements contained in this press release that are not historical facts are forward-looking statements that involve a number of risks and uncertainties. Therefore, the actual results of future events described in such forward-looking statements could differ materially from those stated in such forward-looking statements. Among the factors that could cause actual results to differ materially are: (i) regulatory and tax developments; (ii) changes in the company's direct costs and operating expenses; (iii) the effectiveness of the company's sales and marketing efforts, including its marketing agreement with American Express, American Express' ability to set qualified appointments and the company's ability to convert those appointments into sales; (iv) the estimated costs and effectiveness of capital projects and investments in technology and infrastructure; (v) changes in the competitive environment in the PEO industry; and (vi) the effectiveness and estimated costs of the company's Year 2000 conversion and contingency plans. These factors are described in further detail in the company's filings with the Securities and Exchange Commission.)