THIRD-QUARTER HIGHLIGHTS:
- TOTAL REVENUE OF $438.9 MILLION,
UP 6.9%; SAME-UNIT REVENUE UP 5.1%
- NET INCOME UP 4.2%; ADJUSTED EBITDA UP 23.0%
- GAAP EPS UP 4.5%; ADJUSTED EPS UP 27.3%
NINE-MONTH HIGHLIGHTS:
- TOTAL REVENUE OF $1.4 BILLION UP
7.1%; SAME-UNIT REVENUE UP 4.6%
- NET INCOME DOWN 1.5%; ADJUSTED EBITDA UP 7.0%
- GAAP EPS DOWN 0.8%; ADJUSTED EPS UP 7.5%
CLEVELAND, Oct. 29,
2024 /PRNewswire/ -- CBIZ, Inc., (NYSE: CBZ) ("CBIZ"
or the "Company"), a leading provider of financial, insurance and
advisory services, today announced results for the third quarter
and nine months ended September 30,
2024.
For the 2024 third quarter, CBIZ recorded revenue of
$438.9 million, an increase of
$28.3 million, or 6.9%, compared with
$410.5 million reported for the same
period in 2023. Acquired operations, net of divestitures,
contributed $7.6 million, or 1.8%, to
third-quarter 2024 revenue growth. Same-unit revenue increased
by $20.8 million, or 5.1%, for the quarter, compared with the
same period a year ago. Net income was $35.1
million, or $0.70 per diluted
share, for the quarter, compared with $33.7
million, or $0.67 per diluted
share, for the same period a year ago.
For the nine months
ended September 30, 2024, CBIZ recorded revenue
of $1,353.2 million, an increase of
$89.5 million, or 7.1%, over the
$1,263.6 million recorded for the
same period in 2023. Acquired operations, net of divestitures,
contributed $30.9 million, or 2.4%,
to revenue growth in the nine months ended September 30, 2024. Same-unit revenue increased
by $58.7 million, or 4.6%, for the
nine months ended September 30, 2024,
compared with the same period a year ago. Net income was
$131.8 million, or $2.62 per diluted share, for the nine months
ended September 30, 2024, compared
with $133.7 million, or $2.64 per diluted share, for the same period a
year ago.
On July 31, 2024, CBIZ announced
it entered into a definitive agreement to acquire Marcum LLP
("Marcum"), a national accounting and advisory firm, and with
essentially all closing conditions met, the transaction is expected
to close in the coming days. During the 2024 third quarter, CBIZ
incurred approximately $14.8 million
in fees related to the Marcum transaction which adversely impacted
GAAP earnings results by $0.20 per
diluted share. For the first nine months of 2024, $21.4 million in fees were incurred in connection
with the Marcum transaction with an adverse impact on GAAP earnings
results of $0.31 per diluted share.
More information relating to this pending transaction can be found
on CBIZ's website at https://www.cbiz.com/stronger-together.
Excluding nonrecurring acquisition-related integration expenses,
transaction costs incurred related to the Marcum transaction, and
gain from the sale of a national practice, Adjusted net income
was $42.3 million in the third quarter of 2024, compared
with Adjusted net income of $33.2
million for the same period a year ago. Adjusted earnings
per share was $0.84 for the
third-quarter of 2024, an increase of 27.3%, compared with Adjusted
earnings per share of $0.66 for the
same period a year ago. Adjusted EBITDA for the third- quarter of
2024 was $75.7 million, up 23.0%,
compared with $61.6 million for the
same period in 2023.
For the nine months ended September 30,
2024, Adjusted net income was $144.8
million, compared with Adjusted net income of $135.0 million for the same period a year ago.
Adjusted earnings per share was $2.87 for the nine months
ended September 30, 2024, an increase
of 7.5%, compared with Adjusted earnings per share of $2.67 for the same period a year ago. Adjusted
EBITDA for the nine months ended September
30, 2024, was $245.2 million,
compared with $229.2 million for the
same period in 2023.
Schedules reconciling Adjusted net income, Adjusted earnings per
share and Adjusted EBITDA to the most directly comparable GAAP
measures can be found in the tables included at the end of this
release.
The balance outstanding on the Company's unsecured credit
facility on September 30, 2024, was
$337.3 million, with $252.0 million of unused borrowing capacity.
Jerry Grisko, CBIZ President and
Chief Executive Officer, said, "Adjusted earnings per share were up
by over 27% and we are very pleased to report strong third quarter
results. With the business performing in line with expectations for
the first three quarters of the year and a favorable outlook for
the fourth quarter, we are pleased to reaffirm our full-year 2024
guidance for Adjusted earnings per share."
Grisko continued, "With the Marcum transaction nearing closing,
we are excited for the opportunities it presents to our collective
team members, clients, and for the CBIZ shareholders. With combined
annual revenues of approximately $2.8
billion, over 10,000 team members, offices from coast to
coast, and our wide-range of high-value services including
accounting, tax, advisory, benefits, insurance, and technology,
CBIZ will become the largest provider of professional services of
our kind to the middle market. Upon closing, we will be unmatched
in the depth of expertise and breadth of services we are able to
provide to our clients and the career and growth opportunities we
are able to offer our teams."
2024 Outlook
With an expected close in the fourth quarter of 2024, current
guidance excludes the impact of the Marcum acquisition. Based on
expectations for the remainder of the year, the Company expects the
following:
- Total revenue to grow within a range of 7% to 9% over the prior
year.
- Effective tax rate of approximately 28%.
- Weighted average fully diluted share count of approximately
50.0 to 50.5 million shares.
- GAAP fully diluted earnings per share to be within a range of
$2.37 to $2.42 per share, or within a range of 1% higher
or lower than the $2.39 per share
reported for 2023.
- Adjusted fully diluted earnings per share to grow within a
range of 10% to 12%, to $2.64 to
$2.69 per share, compared with the
$2.41 per share reported for
2023.
Conference Call
CBIZ will host a conference call at 11
a.m. (ET) today to discuss its third-quarter and nine-month
financial results. The call will be webcast and an archived replay
will be available at
https://cbiz.gcs-web.com/ investor-overview. Participants can
register at
https://dpregister.com/sreg/10193759/fdc246933b .
About CBIZ
CBIZ is a leading provider of financial, insurance and advisory
services to businesses throughout the United States. Financial
services include accounting, tax, government health care
consulting, transaction advisory, risk advisory, and valuation
services. Insurance services include employee benefits consulting,
retirement plan consulting, property and casualty insurance,
payroll, and human capital consulting. With more than 120 offices
in 33 states, CBIZ is one of the largest accounting and insurance
brokerage providers in the U.S. For more information, visit
www.cbiz.com.
Forward-Looking Statements
Forward-looking statements in this release are made pursuant to
the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements are subject to
certain risks and uncertainties that could cause actual results to
differ materially from those projected. Such risks and
uncertainties include, but are not limited to: we may be more
sensitive to revenue fluctuations than other companies, which could
result in fluctuations in the market price of our common stock;
payments on accounts receivable may be slower than expected, or
amounts due on receivables or notes may not be fully collectible;
we are dependent on the services of our executive officers, other
key employees, producers and service personnel, the loss of whom
may have a material adverse effect on our business, financial
condition and results of operations; restrictions imposed by
independence requirements and conflict of interest rules may limit
our ability to provide services to clients of the attest firms with
which we have contractual relationships and the ability of such
attest firms to provide attestation services to our clients; our
goodwill and intangible assets could become impaired, which could
lead to material non-cash charges against earnings; certain
liabilities resulting from acquisitions are estimated and could
lead to a material non-cash impact on earnings; governmental
regulations and interpretations are subject to changes, which could
have a material adverse effect on our clients, our business, our
business services operations, our business models, or our revenue;
changes in the United States
healthcare or public health environment, including new healthcare
legislation or regulations, may adversely affect the revenue and
margins in our or our clients' businesses; we are subject to risks
relating to processing customer transactions for our payroll and
other transaction processing businesses; cyber-attacks or other
security breaches involving our computer systems or the systems of
one or more of our vendors or clients could materially and
adversely affect our business; we are subject to risk as it relates
to software that we license from third parties; we could be held
liable for errors and omissions, contract claims, or other
litigation judgments or expenses; the future issuance of additional
shares could adversely affect the price of our common stock; our
principal stockholders may have substantial control over our
operations; we require a significant amount of cash for interest
payments on our debt and to expand our business as planned; terms
of our credit facility may adversely affect our ability to run our
business and/or reduce stockholder returns; our failure to
satisfy covenants in our debt instruments could cause a
default under those instruments; we are reliant on information
processing systems and any failure of these systems could have a
material adverse effect on our business, financial condition and
results of operations; we may not be able to acquire and finance
additional businesses which may limit our ability to pursue our
business strategy; the business services industry is competitive
and fragmented; if we are unable to compete effectively, our
business, financial condition and results of operations may be
negatively impacted; and there is volatility in our stock
price.
With respect to the agreement to acquire Marcum, such risks and
uncertainties include, but are not limited to: the ability of the
parties to consummate the transaction in a timely manner or at all;
satisfaction of the conditions precedent to consummation of the
transaction, including the ability to secure regulatory approvals
in a timely manner or at all; the possibility of litigation related
to the transaction and the effects thereof; the possibility that
anticipated benefits and/or synergies of the transaction will not
be achieved in a timely manner or at all; the possibility that the
costs of the transaction and/or liabilities assumed will be more
significant than anticipated; the possibility that integration will
prove more costly and/or time consuming than anticipated; the
possibility that the transaction could disrupt ongoing plans and
operations of the parties or their respective relationships with
clients, other business partners and employees; the possibility
that the financing will not be obtained as anticipated and the
effects of the increased leverage of the Company following the
transaction; and other risks described in the Company's filings
with the Securities and Exchange Commission ("SEC").
Such forward-looking statements can be affected by inaccurate
assumptions we might make or by known or unknown risks and
uncertainties. Should one or more of these risks materialize, or
should the underlying assumptions prove incorrect, actual results
may vary materially from those anticipated, estimated or projected.
Consequently, no forward-looking statements can be guaranteed.
A more detailed description of such risks and uncertainties may
be found in "Item 1A. Risk Factors" of the Company's
Annual Report on Form 10-K for the year ended
December 31, 2023,
"Item 1A. Risk Factors" of the Company's
Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, and the Company's other filings
with the SEC at www.sec.gov.
All forward-looking statements made in this release are made
only as of the date hereof. The Company does not undertake any
obligation to publicly update or correct any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by law.
|
CBIZ, INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
THREE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
(In thousands, except percentages and per share data)
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
|
|
|
2024
|
%
|
2023
|
%
|
|
|
|
|
|
|
Revenue
|
$ 438,884
|
100.0 %
|
$ 410,539
|
100.0 %
|
|
|
|
|
|
|
Operating expenses (1)
|
365,971
|
83.4
|
342,148
|
83.3
|
|
|
|
|
|
|
Gross margin
|
72,913
|
16.6
|
68,391
|
16.7
|
|
|
|
|
|
|
Corporate general and administrative expenses (1)
|
23,227
|
5.3
|
13,136
|
3.2
|
|
|
|
|
|
|
Operating income
|
49,686
|
11.3
|
55,255
|
13.5
|
|
|
|
|
|
|
Other (expense) income:
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
(4,968)
|
(1.1)
|
(5,848)
|
(1.4)
|
|
|
|
|
|
|
Gain on sale of operations, net
|
4,953
|
1.1
|
77
|
—
|
|
|
|
|
|
|
Other income
(expense), net (1) (2)
|
1,300
|
0.3
|
(2,288)
|
(0.6)
|
|
|
|
|
|
|
Total other income
(expense), net
|
1,285
|
0.3
|
(8,059)
|
(2.0)
|
|
|
|
|
|
|
Income before income
tax expense
|
50,971
|
11.6
|
47,196
|
11.5
|
|
|
|
|
|
|
Income tax expense
|
15,887
|
|
13,514
|
|
|
|
|
|
|
|
Net income
|
$ 35,084
|
8.0 %
|
$ 33,682
|
8.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
$
0.70
|
|
$
0.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average common shares
outstanding
|
50,401
|
|
50,371
|
|
|
|
|
|
|
|
Other data:
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(3)
|
$ 75,713
|
|
$ 61,564
|
|
|
|
|
|
|
|
Adjusted EPS (3)
|
$ 0.84
|
|
$ 0.66
|
|
|
|
|
|
|
|
|
(1) CBIZ
sponsors a deferred compensation plan, under which a CBIZ
employee's compensation deferral is held in a rabbi trust and
invested as directed by the employee. Income and expenses related
to the deferred compensation plan are included in "Operating
expenses" and "Corporate general and administrative expenses," and
are directly offset by deferred compensation gains or losses in
"Other income (expense), net." The deferred compensation plan has
no impact on "Income before income tax expense."
|
|
|
Income and expenses
related to the deferred compensation plan for the three months
ended September 30, 2024, and 2023, are as follows (in
thousands):
|
|
|
Three Months Ended
September 30,
|
|
2024
|
% of
Revenue
|
2023
|
% of
Revenue
|
|
Operating (income) expenses
|
$
7,305
|
1.7 %
|
$ (3,009)
|
(0.7) %
|
|
Corporate general &
administrative (income) expenses
|
1,064
|
0.2 %
|
(452)
|
(0.1) %
|
|
Other income (expenses), net
|
8,369
|
1.9 %
|
(3,461)
|
(0.8) %
|
|
|
Excluding the impact of
the previously mentioned income and expenses related to the
deferred compensation plan, the operating results for the three
months ended September 30, 2024, and 2023, are as follows (in
thousands):
|
|
|
Three Months Ended
September 30,
|
|
2024
|
|
2023
|
|
As
Reported
|
Deferred
Compensation
Plan
|
Adjusted
|
% of
Revenue
|
|
As
Reported
|
Deferred
Compensation
Plan
|
Adjusted
|
% of
Revenue
|
|
Gross margin
|
$ 72,913
|
$
7,305
|
$ 80,218
|
18.3 %
|
|
$ 68,391
|
$
(3,009)
|
$ 65,382
|
15.9 %
|
|
Operating income
|
49,686
|
8,369
|
58,055
|
13.2 %
|
|
55,255
|
(3,461)
|
51,794
|
12.6 %
|
|
Other income
(expense), net
|
1,300
|
(8,369)
|
(7,069)
|
(1.6) %
|
|
(2,288)
|
3,461
|
1,173
|
0.3 %
|
|
Income before income
tax expense
|
50,971
|
—
|
50,971
|
11.6 %
|
|
47,196
|
—
|
47,196
|
11.5 %
|
|
|
(2)
Included in "Other income (expense), net" for the three months
ended September 30, 2024, and 2023, is expense of $5.7
million and $0.6 million,
respectively, related to net changes
in the fair value of contingent consideration related to CBIZ's
prior acquisitions.
(3) Refer
to the schedules reconciling Adjusted earnings per share and
Adjusted EBITDA to the most directly comparable GAAP measures at
the end of this release and for additional information as to the
usefulness of the non-GAAP financial measures to stockholders and
investors.
|
|
CBIZ,
INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
NINE
MONTHS ENDED SEPTEMBER 30, 2024 AND
2023
(In thousands, except percentages and per share data)
|
|
Nine Months Ended
September 30,
|
|
2024
|
%
|
2023
|
%
|
|
Revenue
|
$1,353,193
|
100.0 %
|
$1,263,647
|
100.0 %
|
|
Operating expenses (1)
|
1,108,824
|
81.9
|
1,027,146
|
81.3
|
|
Gross margin
|
244,369
|
18.1
|
236,501
|
18.7
|
|
Corporate general and administrative expenses (1)
|
63,988
|
4.7
|
44,527
|
3.5
|
|
Operating income
|
180,381
|
13.4
|
191,974
|
15.2
|
|
Other (expense) income:
|
|
|
|
|
|
Interest expense
|
(15,363)
|
(1.1)
|
(15,023)
|
(1.2)
|
|
Gain on sale of operations, net
|
4,953
|
0.4
|
176
|
—
|
|
Other income,
net (1) (2)
|
13,207
|
1.0
|
8,245
|
0.7
|
|
Total other income
(expense), net
|
2,797
|
0.3
|
(6,602)
|
(0.5)
|
|
Income before income
tax expense
|
183,178
|
13.7
|
185,372
|
14.7
|
|
Income tax expense
|
51,417
|
|
51,667
|
|
|
Net income
|
131,761
|
9.7 %
|
133,705
|
10.6 %
|
|
|
|
|
|
|
Diluted earnings per share
|
$
2.62
|
|
$
2.64
|
|
|
|
|
|
|
|
Diluted weighted average common shares
outstanding
|
50,359
|
|
50,644
|
|
|
Other data:
|
|
|
|
|
|
Adjusted EBITDA
(3)
|
$ 245,226
|
|
$ 229,222
|
|
|
Adjusted EPS (3)
|
$
2.87
|
|
$
2.67
|
|
|
|
(1) CBIZ sponsors
a deferred compensation plan, under which a CBIZ employee's
compensation deferral is held in a rabbi trust and invested as
directed by the employee. Income and expenses related to the
deferred compensation plan are included in "Operating expenses" and
"Corporate general and administrative expenses," and are directly
offset by deferred compensation gains or losses in "Other income,
net." The deferred compensation plan has no impact on "Income
before income tax expense."
|
|
|
Income and expenses
related to the deferred compensation plan for the nine months ended
September 30, 2024, and 2023, are as follows (in
thousands):
|
|
Nine Months Ended
September 30,
|
|
2024
|
% of
Revenue
|
2023
|
% of
Revenue
|
|
Operating expenses
|
$ 18,164
|
1.3 %
|
$
6,853
|
0.5 %
|
|
Corporate general and administrative
|
2,444
|
0.2 %
|
821
|
0.1 %
|
|
Other income, net
|
20,608
|
1.5 %
|
7,674
|
0.6 %
|
|
|
Excluding the impact of
the above-mentioned income and expenses related to the deferred
compensation plan, the operating results for the nine months ended
September 30, 2024, and 2023, are as follows (in
thousands):
|
|
|
Nine Months Ended
September 30,
|
|
|
2024
|
|
|
|
2023
|
|
|
As
|
Deferred
Compensation
|
|
% of
|
As
|
Deferred
Compensation
|
|
% of
|
|
Reported
|
Plan
|
Adjusted
|
Revenue
|
Reported
|
Plan
|
Adjusted
|
Revenue
|
|
Gross margin
|
$244,369
|
$ 18,164
|
$262,533
|
19.4 %
|
$236,501
|
$
6,853
|
$243,354
|
19.3 %
|
|
Operating income
|
180,381
|
20,608
|
200,989
|
14.9 %
|
191,974
|
7,674
|
199,648
|
15.8 %
|
|
Other income
(expense), net
|
13,207
|
(20,608)
|
(7,401)
|
(0.5) %
|
8,245
|
(7,674)
|
571
|
— %
|
|
Income before income
tax expense
|
183,178
|
—
|
183,178
|
13.5 %
|
185,372
|
—
|
185,372
|
14.7 %
|
|
|
(1)
Included in "Other income, net" for the nine months ended September
30, 2024, and 2023, is expense of $6.3 million and $2.1 million,
respectively, related to net changes in the fair value of
contingent consideration related to CBIZ's prior
acquisitions.
(2) Refer
to the schedules reconciling Adjusted earnings per share and
Adjusted EBITDA to the most directly comparable GAAP financial
measures at the end of this release and for additional information
as to the usefulness of the non-GAAP financial measures to
stockholders and investors.
|
|
CBIZ,
INC.
FINANCIAL HIGHLIGHTS
(UNAUDITED)
(In thousands)
SELECT SEGMENT
DATA
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|
2024
|
2023
|
2024
|
2023
|
|
Revenue
|
|
|
|
|
|
Financial Services
|
$
322,295
|
$
298,372
|
$
1,004,158
|
$
932,388
|
|
Benefits and Insurance Services
|
104,040
|
100,287
|
309,867
|
296,179
|
|
National Practices
|
12,549
|
11,880
|
39,168
|
35,080
|
|
Total
|
$
438,884
|
$
410,539
|
$
1,353,193
|
$
1,263,647
|
|
|
|
|
|
|
Gross Margin
|
|
|
|
|
|
Financial Services
|
$
61,656
|
$
48,692
|
$ 215,149
|
$
194,820
|
|
Benefits and Insurance Services
|
21,075
|
20,651
|
60,022
|
61,246
|
|
National Practices
|
1,448
|
1,213
|
4,106
|
3,285
|
|
Operating expenses - unallocated (1):
|
|
|
|
|
|
Other expense
|
(3,961)
|
(5,174)
|
(16,744)
|
(15,997)
|
|
Deferred compensation
|
(7,305)
|
3,009
|
(18,164)
|
(6,853)
|
|
Total
|
$
72,913
|
$
68,391
|
$
244,369
|
$
236,501
|
|
|
(1)
Represents operating expenses not directly allocated to individual
businesses, including stock-based compensation, consolidation and
integration charges, and certain advertising expenses. "Operating
expenses - unallocated" also includes gains or losses attributable
to the assets held in a rabbi trust associated with the Company's
deferred compensation plan. These gains or losses do not impact
"Income before income tax expense" as they are directly offset by
the same adjustment to "Other income (expense), net" in the
Consolidated Statements of Comprehensive Income. Net gains or
losses recognized from adjustments to the fair value of the assets
held in the rabbi trust are recorded as compensation expense
(income) in "Operating expenses" and "Corporate, general and
administrative expenses," and offset in "Other income (expense),
net."
|
|
CBIZ,
INC.
SELECT CASH FLOW DATA
(UNAUDITED)
(In thousands)
|
|
|
|
Nine Months
Ended September 30,
|
|
2024
|
2023
|
|
Net income
|
$
131,761
|
$
133,705
|
|
Adjustments to reconcile net income to net cash
provided by operating activities:
|
|
|
|
Depreciation and amortization expense
|
28,593
|
26,965
|
|
Gain on sale of operations, net
|
(4,953)
|
(176)
|
|
Bad debt expense, net of recoveries
|
2,099
|
1,011
|
|
Adjustments to contingent earnout
liability, net
|
6,340
|
2,071
|
|
Stock-based compensation expense
|
7,431
|
9,721
|
|
Other noncash
adjustments
|
5,276
|
5,533
|
|
Net income, after
adjustments to reconcile net income to net cash provided
by
operating
activities
|
176,547
|
178,830
|
|
Changes in assets and
liabilities, net of acquisitions and
divestitures
|
(108,379)
|
(121,576)
|
|
Net cash provided by operating activities
|
68,168
|
57,254
|
|
Net cash
used in investing activities
|
(24,911)
|
(76,630)
|
|
Net cash
used in financing activities
|
(85,222)
|
(18,442)
|
|
Net decrease in cash, cash
equivalents and restricted cash
|
(41,965)
|
(37,818)
|
|
Cash, cash equivalents and restricted cash
at beginning of year
|
$
157,148
|
$
160,145
|
|
Cash, cash equivalents and restricted cash
at end of period
|
$
115,183
|
$
122,327
|
|
|
|
|
Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance
sheet:
|
|
Cash and
cash equivalents
|
$
1,076
|
$
1,415
|
|
Restricted cash
|
43,104
|
38,229
|
|
Cash equivalents included in funds
held for clients
|
71,003
|
82,683
|
|
Total cash, cash
equivalents and restricted cash
|
$
115,183
|
$
122,327
|
|
CBIZ,
INC.
SELECT FINANCIAL DATA AND RATIOS
(UNAUDITED)
(In thousands)
|
|
September 30,
2024
|
|
|
|
December 31,
2023
|
|
Cash and cash
equivalents
|
1,076
|
|
|
|
8,090
|
|
Restricted cash
|
43,104
|
|
|
|
30,362
|
|
Accounts receivable, net
|
476,565
|
|
|
|
380,152
|
|
Other current assets
|
42,902
|
|
|
|
34,895
|
|
Current assets before
funds held for clients
|
563,647
|
|
|
|
453,499
|
|
Funds held for clients
|
112,148
|
|
|
|
159,186
|
|
Goodwill and other intangible assets, net
|
1,030,104
|
|
|
|
1,008,604
|
|
|
|
|
|
|
|
Total assets
|
2,133,370
|
|
|
|
2,043,592
|
|
|
|
|
|
|
|
Current liabilities before client fund obligations
|
340,598
|
|
|
|
352,028
|
|
Client fund
obligations
|
112,319
|
|
|
|
159,893
|
|
Total long-term debt, net
|
335,835
|
|
|
|
310,826
|
|
|
|
|
|
|
|
Total liabilities
|
1,205,450
|
|
|
|
1,251,974
|
|
|
|
|
|
|
|
Treasury stock
|
(910,537)
|
|
|
|
(899,093)
|
|
|
|
|
|
|
|
Total stockholders' equity
|
927,920
|
|
|
|
791,618
|
|
|
|
|
|
|
|
Debt to equity
|
36.2 %
|
|
|
|
39.3 %
|
|
Days sales
outstanding (DSO) (1)
|
97
|
|
|
|
78
|
|
|
|
|
|
|
|
Shares outstanding
|
50,188
|
|
|
|
49,814
|
|
Basic weighted average common shares
outstanding
|
50,101
|
|
|
|
49,989
|
|
Diluted weighted average common shares outstanding
|
50,359
|
|
|
|
50,557
|
|
|
(1) DSO is
provided for continuing operations and represents accounts
receivable, net, at the end of the period, divided by trailing
twelve months daily revenue. The Company has included DSO data
because such data is commonly used as a performance measure by
analysts and investors and as a measure of the Company's ability to
collect on receivables in a timely manner. DSO should not be
regarded as an alternative or replacement to any measurement of
performance under GAAP. DSO on September 30, 2023, was
96.
|
|
|
CBIZ, INC.
GAAP
RECONCILIATION
Net Income and Diluted Earnings
Per Share ("EPS")
to Adjusted Net Income, EPS and EBITDA(1)
(Unaudited. Amounts
in thousands, except
per share data)
|
|
Three Months Ended
September 30,
|
|
2024
|
|
2023
|
|
Amounts
|
EPS
|
|
Amounts
|
EPS
|
|
Net income
|
$
35,084
|
$
0.70
|
|
$
33,682
|
$
0.67
|
|
Adjustments:
|
|
|
|
|
|
|
Gain on sale of assets, net
|
—
|
—
|
|
(1,375)
|
(0.03)
|
|
Integration &
retention costs related to acquisitions (2)
|
347
|
0.01
|
|
583
|
0.01
|
|
Facility optimization costs (3)
|
—
|
—
|
|
255
|
0.01
|
|
Gain on sale of operations, net
|
(4,953)
|
(0.10)
|
|
(77)
|
—
|
|
Transaction costs
(4)
|
14,794
|
0.29
|
|
—
|
—
|
|
Income tax effect
related to adjustments
|
(2,954)
|
(0.06)
|
|
154
|
0.00
|
|
Adjusted net
income
|
$ 42,318
|
$
0.84
|
|
$
33,222
|
$
0.66
|
|
Interest expense
|
$
4,968
|
|
|
$
5,848
|
|
|
Income tax expense
|
15,887
|
|
|
13,514
|
|
|
Tax effect
related to the adjustments above
|
2,954
|
|
|
(154)
|
|
|
Depreciation
|
3,532
|
|
|
3,083
|
|
|
Amortization
|
6,054
|
|
|
6,051
|
|
|
Adjusted EBITDA
|
$
75,713
|
|
|
$
61,564
|
|
|
|
|
Nine Months Ended
September 30,
|
|
2024
|
|
2023
|
|
Amounts
|
EPS
|
|
Amounts
|
EPS
|
|
Net income
|
$
131,761
|
$
2.62
|
|
$
133,705
|
$
2.64
|
|
Adjustments:
|
|
|
|
|
|
|
Gain on sale of assets, net
|
—
|
—
|
|
(1,500)
|
(0.03)
|
|
Transaction costs
related to acquisitions (2)
|
—
|
—
|
|
611
|
0.01
|
|
Integration &
retention costs related to acquisitions (2)
|
1,259
|
0.03
|
|
2,451
|
0.05
|
|
Facility optimization costs (3)
|
340
|
0.01
|
|
476
|
0.01
|
|
Gain on sale of operations, net
|
(4,953)
|
(0.10)
|
|
(176)
|
—
|
|
Transaction costs
(4)
|
21,445
|
0.43
|
|
—
|
—
|
|
Income tax effect
related to adjustments
|
(5,078)
|
(0.12)
|
|
(568)
|
(0.01)
|
|
Adjusted net
income
|
$
144,774
|
$
2.87
|
|
$
134,999
|
$
2.67
|
|
Interest expense
|
$ 15,363
|
|
|
$ 15,023
|
|
|
Income tax expense
|
51,417
|
|
|
51,667
|
|
|
Tax effect
related to the adjustments above
|
5,078
|
|
|
568
|
|
|
Depreciation
|
10,575
|
|
|
9,174
|
|
|
Amortization
|
18,019
|
|
|
17,791
|
|
|
Adjusted EBITDA
|
$
245,226
|
|
|
$
229,222
|
|
|
|
(1) CBIZ
reports its financial results in accordance with GAAP. This table
reconciles Adjusted net income, Adjusted EPS, and Adjusted EBITDA
to the most directly comparable GAAP financial measures, "Net
income" and "Diluted earnings per share." Adjusted net income,
Adjusted EPS and Adjusted EBITDA are not defined by GAAP and should
not be regarded as an alternative or replacement to any financial
information determined under GAAP. Adjusted net income, Adjusted
EPS and Adjusted EBITDA exclude significant non-operating related
gains and losses that management does not consider on-going in
nature. These non-GAAP financial measures are used by the Company
as performance measures to evaluate, assess and benchmark the
Company's operational results and to evaluate results relative to
employee compensation targets. Accordingly, the Company believes
the presentation of these non-GAAP financial measures allows its
stockholders, debt holders, and other interested parties to
meaningfully compare the Company's period-to-period operating
results.
(2) These
costs include, but are not limited to, certain consulting,
technology, personnel, as well as other first year operating and
general administrative costs that are non-recurring in
nature. Amounts reported in 2024 related to the costs incurred
related to the acquisitions of Erickson, Brown & Kloster, LLC
and CompuData, Inc., and those reported in 2023 related to the
acquisition of Somerset CAPs and Advisors.
(3)
These costs relate to incremental non-recurring lease expense incurred
as a result of CBIZ's real estate
optimization efforts.
(4) These
costs include, but are not limited to, certain non-recurring legal
and other professional service costs incurred in connection with
the announced purchase of Marcum.
|
|
CBIZ, INC.
GAAP RECONCILIATION
Full Year 2024 Diluted Earnings
Per Share ("EPS")
Guidance to Full Year 2024 Adjusted Diluted
EPS(1)
|
|
|
|
Full Year
2024 Guidance
|
|
Low
|
|
High
|
|
Diluted EPS - GAAP Guidance
|
$
|
2.37
|
$
|
2.42
|
|
Adjustments:
|
|
|
|
|
|
Transaction
costs(2)
|
|
0.31
|
|
0.31
|
|
Other adjustments (3)
|
|
(0.04)
|
|
(0.04)
|
|
Adjusted
Diluted EPS Guidance
|
$
|
2.64
|
$
|
2.69
|
|
GAAP Diluted
EPS for 2023
|
$
|
2.39
|
$
|
2.39
|
|
Adjusted Diluted EPS for 2023
|
$
|
2.41
|
|
2.41
|
|
GAAP Diluted
EPS Range
|
|
(1) %
|
|
1 %
|
|
Adjusted Diluted EPS Range
|
|
10 %
|
|
12 %
|
|
|
(1) The full
year 2024 guidance is based on management's current expectations
for the remainder of 2024, excluding the impact of the announced
acquisition of Marcum.
|
|
(2) These
costs include, but are not limited to, certain non-recurring legal
and other professional service costs incurred in connection with
the announced purchase of Marcum.
|
|
(3) These
adjustments include, but are not limited to, certain non-recurring
consulting, technology, personnel, and other first year operating
and general administrative costs incurred related to the
acquisitions of Erickson, Brown & Kloster, LLC and CompuData,
Inc., as well as the gain on sale of certain operations.
|
|
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SOURCE CBIZ, Inc.