##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 þ
    
    Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 For the quarterly period ended March 31, 2007.
 or
 o
    
    Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 For the transition period from  to
 Commission File No. 0-22701
 GEVITY HR, INC.
 (Exact name of registrant as specified in its charter)
 Florida
    
    65-0735612(State or other jurisdiction of incorporation or organization)
    
    (I.R.S. Employer Identification No.)9000 Town Center ParkwayBradenton, Florida
    
    34202(Address of principal executive offices)
    
    (Zip Code)
 (Registrants telephone number, including area code): (941) 741-4300
 þ o
  o þ o
 o þ
  Class of common stock
    
    Outstanding as of April 30, 2007Par value $0.01 per share
    
    24,446,544




---



##### Table of Contents



TABLE OF CONTENTS
 PagePART I. FINANCIAL INFORMATIONITEM 1. Financial Statements
    
    
    3Condensed Consolidated Statements of Operations for the three months ended
March 31, 2007 and 2006 (unaudited)
    
    
    3Condensed Consolidated Balance Sheets as of March 31, 2007 and December 31,
2006 (unaudited)
    
    
    4Condensed Consolidated Statements of Cash Flows for the three months
ended March 31, 2007 and 2006 (unaudited)
    
    
    6Notes to Condensed Consolidated Financial Statements (unaudited)
    
    
    7ITEM 2. Managements Discussion and Analysis of Financial Condition and
Results of Operations
    
    
    16ITEM 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    27ITEM 4. Controls and Procedures
    
    
    27PART II. OTHER INFORMATIONITEM 1. Legal Proceedings
    
    
    27ITEM 1A. Risk Factors
    
    
    27ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    28ITEM 6. Exhibits
    
    
    28SIGNATURE
    
    
    29EX-31.1 SECTION 302 CERTIFICATION OF THE CEOEX-31.2 SECTION 302 CERTIFICATION OF THE CFOEX-32 SECTION 906 CERTIFICATIONS OF THE CEO AND CFO
 2




---



##### Table of Contents



PART I. FINANCIAL INFORMATION
 
 Item 1. Financial Statements
 GEVITY HR, INC. AND SUBSIDIARIES
 
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 UNAUDITED
 (in $000s, except share and per share data)
 For the Three Months EndedMarch 31,2007
    
    
    2006Revenues
    
    $
    161,115
    
    
    $
    169,689Cost of services
    
    
    115,721
    
    
    
    120,087Gross profit
    
    
    45,394
    
    
    
    49,602Operating expenses:Salaries, wages and commissions
    
    
    22,538
    
    
    
    20,868Other general and administrative
    
    
    14,793
    
    
    
    12,874Depreciation and amortization
    
    
    3,735
    
    
    
    3,297Total operating expenses
    
    
    41,066
    
    
    
    37,039Operating income
    
    
    4,328
    
    
    
    12,563Interest income
    
    
    165
    
    
    
    252Interest expense
    
    
    (299
    )
    
    
    (264
    )Other expense, net
    
    
    (14
    )
    
    
    (143
    )Income before income taxes
    
    
    4,180
    
    
    
    12,408Income tax provision
    
    
    1,666
    
    
    
    4,214Net income
    
    $
    2,514
    
    
    $
    8,194Net income per common share- Basic
    
    $
    0.10
    
    
    $
    0.31- Diluted
    
    $
    0.10
    
    
    $
    0.30Weighted average common shares outstanding- Basic
    
    
    24,429,466
    
    
    
    26,262,215- Diluted
    
    
    25,040,419
    
    
    
    27,176,671
  3




---



##### Table of Contents



GEVITY HR, INC. AND SUBSIDIARIES
 
 CONDENSED CONSOLIDATED BALANCE SHEETS
 UNAUDITED
 (in $000s, except share and per share data)
 March 31,
    
    
    December 31,2007
    
    
    2006ASSETSCurrent assets:Cash and cash equivalents
    
    $
    6,089
    
    
    $
    36,291Marketable securities  restricted
    
    
    5,932
    
    
    
    4,478Accounts receivable, net
    
    
    116,804
    
    
    
    126,936Short-term workers compensation receivable, net
    
    
    27,186
    
    
    
    35,354Other current assets
    
    
    17,481
    
    
    
    15,927Total current assets
    
    
    173,492
    
    
    
    218,986Property and equipment, net
    
    
    24,859
    
    
    
    23,847Long-term marketable securities  restricted
    
    
    3,792
    
    
    
    3,747Long-term workers compensation receivable, net
    
    
    97,573
    
    
    
    85,872Intangible assets, net
    
    
    20,689
    
    
    
    20,856Goodwill
    
    
    14,629
    
    
    
    8,692Deferred tax asset, net
    
    
    12,240
    
    
    
    11,938Other assets
    
    
    1,404
    
    
    
    622Total assets
    
    $
    348,678
    
    
    $
    374,560
  4




---



##### Table of Contents



GEVITY HR, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (continued)
UNAUDITED
(in $000s, except share and per share data)
 March 31,
    
    
    December 31,2007
    
    
    2006LIABILITIES AND SHAREHOLDERS EQUITYCurrent liabilities:Accrued payroll and payroll taxes
    
    $
    146,099
    
    
    $
    163,410Accrued insurance premiums and health reserves
    
    
    13,967
    
    
    
    17,287Customer deposits and prepayments
    
    
    13,120
    
    
    
    11,893Accounts payable and other accrued liabilities
    
    
    7,333
    
    
    
    10,243Deferred tax liability, net
    
    
    22,476
    
    
    
    24,583Dividends payable
    
    
    2,200
    
    
    
    2,223Total current liabilities
    
    
    205,195
    
    
    
    229,639Revolving credit facility
    
    
    2,249
    
    
    
    Other long-term liabilities
    
    
    4,607
    
    
    
    2,869Total liabilities
    
    
    212,051
    
    
    
    232,508Commitments and contingencies (see notes)Shareholders equity:Common stock, $.01 par value, 100,000,000 shares authorized,
32,019,556 and 31,962,314 issued and outstanding as of March 31,
2007 and December 31, 2006, respectively
    
    
    320
    
    
    
    320Additional paid-in capital
    
    
    179,641
    
    
    
    177,949Retained earnings
    
    
    83,714
    
    
    
    84,110Treasury stock (7,571,004 and 7,260,175 shares at cost, respectively)
    
    
    (127,048
    )
    
    
    (120,327
    )Total shareholders equity
    
    
    136,627
    
    
    
    142,052Total liabilities and shareholders equity
    
    $
    348,678
    
    
    $
    374,560
  5




---



##### Table of Contents



GEVITY HR, INC. AND SUBSIDIARIES
 
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 UNAUDITED
 (in $000s)
 For the Three Months EndedMarch 31,2007
    
    
    2006CASH FLOWS FROM OPERATING ACTIVITIES:Net income
    
    $
    2,514
    
    
    $
    8,194Adjustments to reconcile net income to net cash used in operating activities:Depreciation and amortization
    
    
    3,735
    
    
    
    3,297Deferred tax (benefit) provision, net
    
    
    (2,408
    )
    
    
    343Stock compensation
    
    
    841
    
    
    
    835Excess tax benefits from share-based arrangements
    
    
    (243
    )
    
    
    (1,475
    )Provision for bad debts
    
    
    524
    
    
    
    56Other
    
    
    145
    
    
    
    175Changes in operating working capital:Accounts receivable, net
    
    
    9,608
    
    
    
    3,530Other current assets
    
    
    (1,037
    )
    
    
    2,024Workers compensation receivable, net
    
    
    (3,533
    )
    
    
    (12,185
    )Other assets
    
    
    (327
    )
    
    
    16Accrued insurance premiums and health reserves
    
    
    (3,320
    )
    
    
    (2,656
    )Accrued payroll and payroll taxes
    
    
    (17,407
    )
    
    
    (13,513
    )Accounts payable and other accrued liabilities
    
    
    (2,009
    )
    
    
    658Customer deposits and prepayments
    
    
    1,227
    
    
    
    (1,892
    )Other long-term liabilities
    
    
    303
    
    
    
    (37
    )Net cash used in operating activities
    
    
    (11,387
    )
    
    
    (12,630
    )CASH FLOWS FROM INVESTING ACTIVITIES:Purchases of marketable securities and certificates of deposit
    
    
    (1,499
    )
    
    
    (76
    )Capital expenditures
    
    
    (2,108
    )
    
    
    (4,208
    )Business acquisition
    
    
    (9,466
    )
    
    
    Net cash used in investing activities
    
    
    (13,073
    )
    
    
    (4,284
    )CASH FLOWS FROM FINANCING ACTIVITIES:Net borrowings under revolving credit facility
    
    
    2,249
    
    
    
    Proceeds from exercise of stock options
    
    
    674
    
    
    
    1,359Excess tax benefits from share-based arrangements
    
    
    243
    
    
    
    1,475Dividends paid
    
    
    (2,222
    )
    
    
    (1,846
    )Purchase of treasury stock
    
    
    (6,686
    )
    
    
    (12,900
    )Net cash used in financing activities
    
    
    (5,742
    )
    
    
    (11,912
    )Net decrease in cash and cash equivalents
    
    
    (30,202
    )
    
    
    (28,826
    )Cash and cash equivalents  beginning of period
    
    
    36,291
    
    
    
    52,525Cash and cash equivalents  end of period
    
    $
    6,089
    
    
    $
    23,699Supplemental disclosure of cash flow information:Income taxes paid
    
    $
    3,578
    
    
    $
    110Interest paid
    
    $
    282
    
    
    $
    281
     6




---



##### Table of Contents



GEVITY HR, INC. AND SUBSIDIARIES
 
 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
 (in $000s, except share and per share data)
 1. GENERAL
    Recent Accounting Pronouncements
 Accounting for Uncertainty in Income Taxes An Interpretation of FASB
Statement No. 109
 The Fair Value Option for Financial Assets and Financial Liabilities, Including an Amendment
of FASB Statement No. 115
 Fair Value Measurements
 7




---



##### Table of Contents



2. MARKETABLE SECURITIES  RESTRICTED
    GrossAmortized
    
    
    Unrealized
    
    
    EstimatedCost
    
    
    Gain
    
    
    Fair ValueAs of March 31, 2007:Short-termMoney market  restricted
    
    $
    5,932
    
    
    $
    
    
    
    $
    5,932Total short-term marketable securities  restricted
    
    $
    5,932
    
    
    $
    
    
    
    $
    5,932Long-termMoney market  restricted
    
    $
    3,792
    
    
    $
    
    
    
    $
    3,792Total long-term marketable securities  restricted
    
    $
    3,792
    
    
    $
    
    
    
    $
    3,792As of December 31, 2006:Short-termMoney market  restricted
    
    $
    4,478
    
    
    $
    
    
    
    $
    4,478Total short-term marketable securities  restricted
    
    $
    4,478
    
    
    $
    
    
    
    $
    4,478Long-termMoney market  restricted
    
    $
    3,747
    
    
    $
    
    
    
    $
    3,747Total long-term marketable securities  restricted
    
    $
    3,747
    
    
    $
    
    
    
    $
    3,747
  3. ACCOUNTS RECEIVABLE
  March 31,
    
    
    December 31,2007
    
    
    2006Billed to clients
    
    $
    8,648
    
    
    $
    10,622Unbilled revenues
    
    
    108,912
    
    
    
    116,937117,560
    
    
    
    127,559Less: Allowance for doubtful accounts
    
    
    (756
    )
    
    
    (623
    )Total
    
    $
    116,804
    
    
    $
    126,936
 8




---



##### Table of Contents



4. WORKERS COMPENSATION RECEIVABLE/ RESERVES
        9




---



##### Table of Contents



5. INTANGIBLE ASSETS
 TM
  Business Combinations
 March 31,2007Other current assets
    
    $
    275Software
    
    
    800Property and equipment
    
    
    327Client service agreements
    
    
    2,300Goodwill
    
    
    5,937Other current liabilities
    
    
    (36
    )Other long-term liabilities
    
    
    (137
    )Net value of purchased assets
    
    $
    9,466
  10




---



##### Table of Contents



March 31,
    
    
    December 31,2007
    
    
    2006Purchased client service agreements
    
    $
    50,229
    
    
    $
    47,929Accumulated amortization
    
    
    (29,540
    )
    
    
    (27,073
    )Intangible assets, net
    
    $
    20,689
    
    
    $
    20,856
  6. HEALTH BENEFITS
     11




---



##### Table of Contents



7. REVOLVING CREDIT FACILITY
   12




---



##### Table of Contents



8. COMMITMENTS AND CONTINGENCIES
 Litigation
  Regulatory Matters
  9. EQUITY
 Share Repurchase Program
   13




---



##### Table of Contents



10. INCOME TAXES
  Accounting for Uncertainty
in Income Taxes  An Interpretation of FASB Statement No. 109
    11. EARNINGS PER SHARE (EPS)
  Net Income
    
    
    Shares
    
    
    Per Share(Numerator)
    
    
    (Denominator)
    
    
    AmountFor the Three Months Ended March 31, 2007:Basic EPS:Net income
    
    $
    2,514
    
    
    
    24,429,466
    
    
    $
    0.10Effect of dilutive securities:Options to purchase common stock
    
    
    
    
    
    
    596,216Non-vested stock
    
    
    
    
    
    
    14,737Diluted EPS:Net income
    
    $
    2,514
    
    
    
    25,040,419
    
    
    $
    0.10
 14




---



##### Table of Contents



Net Income
    
    
    Shares
    
    
    Per Share(Numerator)
    
    
    (Denominator)
    
    
    AmountFor the Three Months Ended March 31, 2006:Basic EPS:Net income
    
    $
    8,194
    
    
    
    26,262,215
    
    
    $
    0.31Effect of dilutive securities:Options to purchase common stock
    
    
    
    
    
    
    891,893Non-vested stock
    
    
    
    
    
    
    22,563Diluted EPS:Net income
    
    $
    8,194
    
    
    
    27,176,671
    
    
    $
    0.30
  15




---



##### Table of Contents



ITEM 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
  OVERVIEW AND INTRODUCTION
 tm,
 
 
 
  
 
 
   tm
 16




---



##### Table of Contents



Three Months Ended March 31,2007(1)
    
    2006
    
    % ChangeStatistical dataClient employees at period end
    
    
    140,004
    
    
    
    136,236
    
    
    
    2.8
    %Clients at period end (2)
    
    
    7,445
    
    
    
    8,128
    
    
    
    (8.4
    )%Average number of client
employees/clients at period end
    
    
    18.81
    
    
    
    16.76
    
    
    
    12.2
    %Average number of client employees
paid by month (3)
    
    
    123,902
    
    
    
    127,556
    
    
    
    (2.9
    )%Annualized average wage per average
number of client employees paid by
month (4)
    
    $
    43,528
    
    
    $
    39,811
    
    
    
    9.3
    %Annualized professional service fees
per average number of client
employees paid by month
(4)
    
    $
    1,190
    
    
    $
    1,219
    
    
    
    (2.4
    )%Annualized gross profit per average
number of client employees paid by
month (4)
    
    $
    1,465
    
    
    $
    1,555
    
    
    
    (5.8
    )%Annualized operating income per
average number of client employees
paid by month (4)
    
    $
    140
    
    
    $
    394
    
    
    
    (64.5
    )%
 17




---



##### Table of Contents



(1)
    
    Statistics include the financial results of HRA subsequent to the
February 16, 2007 acquisition date, which did not have a material impact on
the results of operations. Included in the statistics from the HRA
acquisition are approximately 137 non-co-employed clients and 16,000
non-co-employed client employees as of March 31, 2007 and approximately 7,800
of average client employees paid by month for the quarter.(2)
    
    Clients measured by individual client Federal Employer
Identification Number (FEIN).(3)
    
    The average number of client employees paid by month is calculated
based upon the sum of the number of paid client employees at the end of each
month divided by the number of months in the period.(4)
    
    Annualized statistical information is based upon actual
period-to-date amounts, which have been annualized (divided by three and
multiplied by twelve) and then divided by the average number of client
employees paid by month.  
    
    the amount of time required for sales personnel to begin to acquire new client
employees may be longer than anticipated;
    
    the current client employee retention levels may decrease if clients decide to use
alternative providers to service their HR outsourcing needs;
    
    other HR outsourcing client employee portfolios or service providers may not be
available for acquisition due to price or quality;
    
    the Company (under its co-employed service option) may not be able to continue to
provide insurance-related products of a quality to acquire new client employees and to
retain current client employees; and
    
    the time to achieve acceptance by prospective clients of the Companys new business
model may be longer than anticipated.
 18




---



##### Table of Contents



RESULTS OF OPERATIONS
 Three Months Ended March 31, 2007 Compared to Three Months Ended March 31, 2006
 Revenue
  Three Months EndedMarch 31,
    
    
    March 31,2007(1)
    
    
    2006
    
    
    %Change(in thousands, except statistical data)Revenues:Professional service fees
    
    $
    36,869
    
    
    $
    38,862
    
    
    
    (5.1
    )%Employee health and welfare
benefits
    
    
    88,752
    
    
    
    89,259
    
    
    
    (0.6
    )%Workers compensation
    
    
    21,200
    
    
    
    27,415
    
    
    
    (22.7
    )%State unemployment taxes and
other
    
    
    14,294
    
    
    
    14,153
    
    
    
    1.0
    %Total revenues
    
    $
    161,115
    
    
    $
    169,689
    
    
    
    (5.1
    )%Statistical data:Gross salaries and wages
(in thousands)
    
    $
    1,348,296
    
    
    $
    1,269,523
    
    
    
    6.2
    %Average number of client
employees paid by month
(2)
    
    
    123,902
    
    
    
    127,556
    
    
    
    (2.9
    )%Annualized average wage per
average client employees
paid by month
(3)
    
    $
    43,528
    
    
    $
    39,811
    
    
    
    9.3
    %Workers compensation
billing per one hundred
dollars of workers
compensation wages
(4)
    
    $
    1.94
    
    
    $
    2.43
    
    
    
    (20.2
    )%Workers compensation
manual premium per one
hundred dollars of workers
compensation wages
(4), (5)
    
    $
    2.18
    
    
    $
    2.77
    
    
    
    (21.3
    )%Annualized professional
service fees per average
number of client employees
paid by month
(3)
    
    $
    1,190
    
    
    $
    1,219
    
    
    
    (2.4
    )%Client employee health
benefits participation
    
    
    33
    %
    
    
    38
    %
    
    
    (13.2
    )%
 
 (1)
    
    Includes the impact of the HRA acquisition subsequent to the
February 16, 2007 acquisition date, which did not have a material impact on
the results of operations.(2)
    
    The average number of client employees paid by month is calculated
based upon the sum of the number of paid client employees at the end of
each month divided by the number of months in the period.(3)
    
    Annualized statistical information is based upon actual
quarter-to-date amounts, which have been annualized (divided by three and
multiplied by twelve), and then divided by the average number of client
employees paid by month.(4)
    
    Workers compensation wages exclude the wages of clients electing
out of the Companys workers compensation program.(5)
    
    Manual premium rate data are derived from tables of member
insurance companies of American International Group, Inc. (AIG) in effect
for 2007 and 2006, respectively. 19




---



##### Table of Contents



20




---



##### Table of Contents



Cost of Services
  Three Months EndedMarch 31,
    
    
    March 31,2007(1)
    
    
    2006
    
    
    % Change(in thousands, except statistical data)Cost of services:Employee health and welfare
benefits
    
    $
    86,151
    
    
    $
    86,071
    
    
    
    0.1
    %Workers compensation
    
    
    15,016
    
    
    
    19,349
    
    
    
    (22.4
    )%State unemployment taxes and
Other
    
    
    14,554
    
    
    
    14,667
    
    
    
    (0.8
    )%Total cost of services
    
    $
    115,721
    
    
    $
    120,087
    
    
    
    (3.6
    )%Statistical data:Gross salaries and wages
(in thousands)
    
    $
    1,348,296
    
    
    $
    1,269,523
    
    
    
    6.2
    %Average number of client
employees paid by month
(2)
    
    
    123,902
    
    
    
    127,556
    
    
    
    (2.9
    )%Workers compensation cost
rate per one hundred
dollars of workers
compensation wages
(3)
    
    $
    1.38
    
    
    $
    1.72
    
    
    
    (19.8
    )%Number of workers
compensation claims
(4)
    
    
    1,065
    
    
    
    1,415
    
    
    
    (24.7
    )%Frequency of workers
compensation claims per one
million dollars of workers
compensation wages
(3)
    
    
    0.98x
    
    
    
    1.26x
    
    
    
    (22.2
    )%
 
 (1)
    
    Includes the impact of the HRA acquisition subsequent to the February 16,
2007 acquisition date, which did not have a material impact on the results of
operations.(2)
    
    The average number of client employees paid by month is calculated based
upon the sum of the number of paid client employees at the end of each month divided
by the number of months in the period.(3)
    
    Workers compensation wages exclude the wages of clients electing out of
the Companys workers compensation program.(4)
    
    The number of workers compensation claims reflects the number of claims
reported by the end of the respective period and does not include claims with
respect to a specific policy year that are reported subsequent to the end of such
period.  21




---



##### Table of Contents



Operating Expenses
  Three Months EndedMarch 31,
    
    
    March 31,2007(1)
    
    
    2006
    
    
    % Change(in thousands, except statistical data)Operating expenses:Salaries, wages and commissions
    
    $
    22,538
    
    
    $
    20,868
    
    
    
    8.0
    %Other general and administrative
    
    
    14,793
    
    
    
    12,874
    
    
    
    14.9
    %Depreciation and amortization
    
    
    3,735
    
    
    
    3,297
    
    
    
    13.3
    %Total operating expenses
    
    $
    41,066
    
    
    $
    37,039
    
    
    
    10.9
    %Statistical data:Internal employees at quarter end
    
    
    999
    
    
    
    1,055
    
    
    
    (5.3
    )%
 
 (1)
    
    Includes the impact of the HRA acquisition subsequent to the February 16,
2007 acquisition date, which did not have a material impact on the results of
operations   22




---



##### Table of Contents



Income Taxes
  Net Income and Diluted Earnings Per Share
  LIQUIDITY AND CAPITAL RESOURCES
 Cash Flow
 General
    23




---



##### Table of Contents



Restricted Cash
   March 31,
    
    
    December 31,2007
    
    
    2006(in thousands)Short-term marketable securities  restricted:General insurance collateral obligations  AIG
    
    $
    4,532
    
    
    $
    4,478HRA escrow
    
    
    1,400
    
    
    
    Total short-term marketable securities  restricted
    
    
    5,932
    
    
    
    4,478Long-term marketable securities restricted:Workers compensation collateral  AIG
    
    
    3,792
    
    
    
    3,747Total long-term marketable securities  restricted
    
    
    3,792
    
    
    
    3,747Total restricted assets
    
    $
    9,724
    
    
    $
    8,225
    24




---



##### Table of Contents



Cash Flows from Operating Activities
    Cash Flow from Investing Activities
  Cash Flow from Financing Activities
   25




---



##### Table of Contents



Commitments and Contractual Obligations
 Off-Balance Sheet Arrangements
  Contractual Obligations
  CRITICAL ACCOUNTING ESTIMATES
  Accounting for Uncertainty in Income Taxes An Interpretation of
FASB Statement No. 109
 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
  26




---



##### Table of Contents



ITEM 3. Quantitative and Qualitative Disclosures about Market Risk
  
 ITEM 4. Controls and Procedures
   
 PART II. OTHER INFORMATION
 
 ITEM 1. Legal Proceedings
  
 ITEM 1A. Risk Factors
  27




---



##### Table of Contents



ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds
  Total Number of
    
    ApproximateShares Purchased
    
    Dollar Value ofTotal
    
    
    
    
    
    as Part of
    
    Shares That MayNumber of
    
    Average
    
    Publicly
    
    Yet Be PurchasedShares
    
    Price Paid
    
    Announced
    
    Under the ProgramPeriod
    
    Purchased (1)
    
    per Share
    
    Program (1)
    
    ($000s) (1), (2)1/01/2007 
1/31/2007
    
    
    166,921
    
    
    $
    22.30
    
    
    
    166,921
    
    
    $
    41,4322/01/2007 
2/28/2007
    
    
    140,000
    
    
    $
    21.10
    
    
    
    140,000
    
    
    $
    38,4733/01/2007 
3/31/2007
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    38,473Total
    
    
    306,921
    
    
    $
    21.75
    
    
    
    306,921
 
 (1)
    
    On August 15, 2006, the Company announced that the board of directors had authorized
the purchase of up to $75.0 million of the Companys common stock under a new share
repurchase program. Share repurchases under the new program are to be made through open
market repurchases, block trades or in private transactions at such times and in such
amounts as the Company deems appropriate based upon a variety of factors including price,
regulatory requirements, market conditions and other corporate opportunities.(2)
    
    On April 20, 2007, the Companys board of directors authorized an increase to its
current share repurchase program of approximately $36.5 million, which brings the current
repurchase amount authorized back up to approximately $75.0 million. 
 ITEM 6. Exhibits
 31.1
    
    Certification of the Chief Executive Officer, pursuant to Section 302 of
the Sarbanes-Oxley Act of 2002.31.2
    
    Certification of the Chief Financial Officer, pursuant to Section 302 of
the Sarbanes-Oxley Act of 2002.32
    
    Certification furnished pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002.
 28




---



##### Table of Contents



SIGNATURE
  GEVITY HR, INC.Dated: May 7, 2007
    
    /s/ PETER C. GRABOWSKI

Peter C. GrabowskiChief Financial Officer(Principal Financial and Accounting Officer)
 29