AND RAISES FULL-YEAR 2023 REVENUE GUIDANCE
SECOND-QUARTER HIGHLIGHTS:
- TOTAL REVENUE UP 10.1%; SAME-UNIT REVENUE UP 4.1%
- GAAP EPS DOWN 11.7%; ADJUSTED EPS DOWN 12.7%
- NET INCOME DOWN 14.1%; ADJUSTED EBITDA DOWN 2.3%
FIRST-HALF HIGHLIGHTS:
- TOTAL REVENUE UP 13.2%; SAME-UNIT REVENUE UP 7.2%
- GAAP EPS UP 16.5%; ADJUSTED EPS UP 11.0%
- NET INCOME UP 11.9%; ADJUSTED EBITDA UP 12.9%
CLEVELAND, July 27,
2023 /PRNewswire/ -- CBIZ, Inc., (NYSE: CBZ) ("CBIZ"
or the "Company"), a leading provider of financial, insurance and
advisory services, today announced results for the second quarter
ended June 30, 2023.
For the 2023 second quarter, CBIZ recorded revenue of
$398.5 million, an increase of
$36.6 million, or 10.1%, compared
with $362.0 million reported for the
same period in 2022. Acquired operations, net of divestitures,
contributed $21.6 million, or 6.0%,
to revenue growth. Same-unit revenue increased by $15.0 million, or 4.1%, for the quarter, compared
with the same period a year ago. Net income was $26.9 million, or $0.53 per diluted share, compared with
$31.3 million, or $0.60 per diluted share, for the same period a
year ago.
For the six months ended June 30,
2023, CBIZ recorded revenue of $853.1
million, an increase of $99.4
million, or 13.2%, over the $753.7
million recorded for the same period in 2022. Acquisitions,
net of divestitures, contributed $45.5
million, or 6.0%, to revenue growth in the six months ended
June 30, 2023. Same-unit revenue
increased by $53.9 million, or 7.2%,
compared with the same period a year ago. Net income was
$100.0 million, or $1.98 per diluted share, for the six months ended
June 30, 2023, compared with
$89.4 million, or $1.70 per diluted share, for the same period a
year ago.
Excluding non-recurring transaction and first-year integration
expenses related to the acquisition of Marks Paneth in January 2022, and expenses related to the
acquisition of Somerset in
February 2023, Adjusted net income
was $27.6 million in the second
quarter of 2023 compared with Adjusted net income of $32.7 million for the same period a year ago.
Adjusted earnings per share was $0.55, a decrease of 12.7% compared with Adjusted
earnings per share of $0.63 for the
same period a year ago. Adjusted EBITDA for the second quarter was
$54.4 million, down 2.3% compared
with $55.7 million for the same
period in 2022.
Adjusted net income was $102.0
million, or $2.01 per diluted
share, for the six months ended June 30,
2023, compared with $95.3
million, or $1.81 per diluted
share, for the same period a year ago. Adjusted EBITDA for the six
months was $167.8 million, compared
with $148.6 million for the same
period in 2022.
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 in this release.
During the six months ended June 30,
2023, the Company repurchased approximately 1.0 million
shares of its common stock on the open market. The balance
outstanding on the Company's unsecured credit facility on
June 30, 2023, was $410.6 million with $177.5
million of unused borrowing capacity.
Jerry Grisko, CBIZ President and
Chief Executive Officer, said, "Following an exceptionally strong
first quarter, our core businesses continued to perform well during
the second quarter, and demand for our financial services,
including accounting, tax and our advisory services, as well as our
benefits and insurance offerings, remains strong. Our
second-quarter results came in much as we expected with the
exception of two areas that are largely beyond our control –
contract delays in our Government Health Care consulting business
and changes to tax filing deadlines in California. Based on our year-to-date
performance and current outlook for the remainder of the year, we
are pleased to raise revenue guidance and reaffirm our EPS guidance
for the full year."
"So far this year, we've completed three strategic acquisitions and two tuck-in
transactions that together are
expected to add approximately $68 million in annualized revenue.
Our most recent transactions include one in the
highly in-demand cyber and information security space to expand our
advisory services, and another that bolsters our retirement and
investment solutions service offerings, and our overall M&A
pipeline continues to remain active."
2023 Outlook
- The Company increased its revenue growth expectations to within
a range of 10% to 12% over the prior year, up from previous
guidance of within a range of 8% to 10%.
- The Company expects an effective tax rate of approximately 28%.
The increased rate, up from 25.5% in 2022, will impact diluted
earnings per share by approximately $0.08.
- The Company expects a weighted average fully diluted share
count of approximately 50.5 to 51.0 million shares.
- The Company expects GAAP fully diluted earnings per share to
grow within a range of 15% to 17%, to $2.31 to $2.36 per
share, over the $2.01 per share
reported for 2022.
- The Company expects Adjusted fully diluted earnings per share
to grow within a range of 11% to 13%, to $2.36 to $2.41 per
share over the Adjusted earnings per share, of $2.13 per share reported for 2022.
Conference Call
CBIZ will
host a conference call at 11:00 a.m. (ET)
today to discuss its results.
The call will be webcast and
an archived replay
will be available at https://cbiz.gcs-web.com/investor-overview. Participants may register
at https://dpregister.com/sreg/10180368/f9d02de210.
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, the risk that the
anticipated benefits and perceived advantages of an acquisition may
not be achieved; the impact of COVID-19 or governmental rules
related to public health issues on the Company's business,
operations and clients; the Company's ability to adequately manage
and sustain its growth; the Company's dependence on the trend of
outsourcing business services; the Company's dependence on the
services of its CEO, other key employees, producers and service
personnel; the effects of any potential cyber-attacks; competitive
pricing pressures; general business and economic conditions; and
changes in governmental laws or regulation affecting the Company's
clients, business, business services operations, or business
models. A more detailed description of such risks and uncertainties
may be found in the Company's filings with the Securities and
Exchange Commission at www.sec.gov.
CBIZ,
INC.
FINANCIAL HIGHLIGHTS
(UNAUDITED)
THREE MONTHS ENDED
JUNE 30, 2023 AND 2022
(In thousands,
except percentages and per share data)
|
|
|
|
Three Months Ended June 30,
|
|
|
2023
|
|
%
|
|
2022
|
|
%
|
Revenue
|
|
$
398,502
|
|
100.0 %
|
|
$
361,952
|
|
100.0 %
|
Operating expenses
(1)
|
|
343,987
|
|
86.3
|
|
289,736
|
|
80.0
|
Gross margin
|
|
54,515
|
|
13.7
|
|
72,216
|
|
20.0
|
Corporate general and
administrative expenses (1)
|
|
15,793
|
|
4.0
|
|
10,926
|
|
3.0
|
Operating income
|
|
38,722
|
|
9.7
|
|
61,290
|
|
17.0
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(5,534)
|
|
(1.4)
|
|
(1,645)
|
|
(0.5)
|
Gain on sale of
operations, net
|
|
—
|
|
—
|
|
135
|
|
—
|
Other income
(expense), net (1) (2)
|
|
5,421
|
|
1.4
|
|
(15,903)
|
|
(4.4)
|
Total other expense,
net
|
|
(113)
|
|
—
|
|
(17,413)
|
|
(4.9)
|
Income before income tax
expense
|
|
38,609
|
|
9.7
|
|
43,877
|
|
12.1
|
Income tax
expense
|
|
11,746
|
|
|
|
12,622
|
|
|
Net income
|
|
$
26,863
|
|
6.7 %
|
|
$
31,255
|
|
8.6 %
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
$
0.53
|
|
|
|
$
0.60
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average common shares outstanding
|
|
50,385
|
|
|
|
52,531
|
|
|
Other data:
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(3)
|
|
$
54,435
|
|
|
|
$
55,727
|
|
|
Adjusted EPS
(3)
|
|
$ 0.55
|
|
|
|
$ 0.63
|
|
|
|
|
(1)
|
CBIZ sponsors a
deferred compensation plan, under which a CBIZ employee's
compensation deferral is held in a rabbi
trust and invested accordingly
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 June 30, 2023, and 2022 are as follows (in thousands):
|
|
|
|
|
|
|
Three Months
Ended June 30,
|
|
|
|
2023
|
% of
Revenue
|
2022
|
% of
Revenue
|
|
|
Operating expenses (income)
|
$
5,102
|
1.3 %
|
$ (13,338)
|
(3.7) %
|
|
|
Corporate general and
administrative expenses (income)
|
631
|
0.1 %
|
(1,811)
|
(0.5) %
|
|
|
Other income (expense), net
|
5,733
|
1.4 %
|
(15,149)
|
(4.1) %
|
|
|
|
|
|
|
|
|
Excluding the impact of
the above-mentioned income and expenses related to the deferred
compensation plan, the operating
results for the three
months ended June 30, 2023, and 2022 are as follows (in
thousands):
|
|
|
|
|
|
Three Months Ended June
30,
|
|
|
|
2023
|
2022
|
|
|
|
As
Reported
|
Deferred
Compensation
Plan
|
Adjusted
|
%
of
Revenue
|
As
Reported
|
Deferred
Compensation
Plan
|
Adjusted
|
%
of
Revenue
|
|
|
Gross margin
|
$ 54,515
|
$
5,102
|
$ 59,617
|
15.0 %
|
$ 72,216
|
$
(13,338)
|
$ 58,878
|
16.3 %
|
|
|
Operating income
|
38,722
|
5,733
|
44,455
|
11.2 %
|
61,290
|
(15,149)
|
46,141
|
12.7 %
|
|
|
Other income
(expense), net
|
5,421
|
(5,733)
|
(312)
|
(0.1) %
|
(15,903)
|
15,149
|
(754)
|
(0.2) %
|
|
|
Income before income
tax expense
|
38,609
|
—
|
38,609
|
9.7 %
|
43,877
|
—
|
43,877
|
12.1 %
|
|
|
|
|
(2)
|
Included in "Other
income (expense), net" for the three months ended June 30, 2023 and
2022, is expense of $0.8 million and
$0.8 million,
respectively, related to net changes in the fair value of
contingent consideration related to CBIZ's prior
acquisitions.
|
|
|
|
(3)
|
Refer to the financial
highlights tables for a reconciliation of Non-GAAP financial
measures to the most directly comparable
GAAP financial measure,
and for additional information as to the usefulness of the Non-GAAP
financial measures to
shareholders and
investors.
|
CBIZ, INC.
FINANCIAL HIGHLIGHTS
(UNAUDITED)
SIX MONTHS ENDED
JUNE 30, 2023 AND 2022
(In thousands, except percentages and per share data)
|
|
|
Six Months Ended
June 30,
|
|
2023
|
%
|
2022
|
%
|
Revenue
|
$
853,108
|
100.0 %
|
$ 753,674
|
100.0 %
|
Operating expenses (1)
|
684,998
|
80.3
|
580,035
|
77.0
|
Gross margin
|
168,110
|
19.7
|
173,639
|
23.0
|
Corporate general and administrative expenses (1)
|
31,391
|
3.7
|
27,235
|
3.6
|
Operating income
|
136,719
|
16.0
|
146,404
|
19.4
|
Other income
(expense):
|
|
|
|
|
Interest expense
|
(9,175)
|
(1.1)
|
(2,904)
|
(0.4)
|
Gain on sale of operations, net
|
99
|
—
|
135
|
—
|
Other income
(expense), net (1) (2)
|
10,533
|
1.2
|
(22,310)
|
(3.0)
|
Total other income
(expense), net
|
1,457
|
0.1
|
(25,079)
|
(3.4)
|
Income before income
tax expense
|
138,176
|
16.1
|
121,325
|
16.0
|
Income tax expense
|
38,153
|
|
31,943
|
|
Net Income
|
100,023
|
11.7
|
89,382
|
11.9
|
|
|
|
|
|
Diluted earnings per share
|
$
1.98
|
|
$ 1.70
|
|
|
|
|
|
|
Diluted weighted average common shares
outstanding
|
50,639
|
|
52,736
|
|
Other data:
|
|
|
|
|
Adjusted EBITDA
(3)
|
$
167,783
|
|
$ 148,620
|
|
Adjusted EPS (3)
|
$
2.01
|
|
$ 1.81
|
|
|
|
(1)
|
CBIZ sponsors a
deferred compensation plan, under which a CBIZ employee's
compensation deferral is held in a rabbi trust
and invested accordingly 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 six months ended
June 30, 2023, and 2022 are as
follows (in thousands):
|
|
|
|
|
|
|
Six Months
Ended June 30,
|
|
|
|
2023
|
% of
Revenue
|
2022
|
% of
Revenue
|
|
|
Operating expenses (income)
|
$
9,862
|
1.2 %
|
$ (19,005)
|
(2.5) %
|
|
|
Corporate general and
administrative expenses (income)
|
1,273
|
0.1 %
|
(2,622)
|
(0.3) %
|
|
|
Other income (expense), net
|
11,135
|
1.3 %
|
(21,627)
|
(2.9) %
|
|
|
|
|
|
|
|
|
Excluding the impact of
the above-mentioned income and expenses related to the deferred
compensation plan, the operating
results for the six
months ended June 30, 2023, and 2022 are as follows (in
thousands):
|
|
|
|
Six Months
Ended June 30,
|
|
|
|
|
2023
|
|
|
|
2022
|
|
As
|
Deferred
Compensation
|
|
% of
|
As
|
Deferred
Compensation
|
|
% of
|
Reported
|
Plan
|
Adjusted
|
Revenue
|
Reported
|
Plan
|
Adjusted
|
Revenue
|
|
|
Gross margin
|
$168,110
|
$
9,862
|
$177,972
|
20.9 %
|
$173,639
|
$
(19,005)
|
$154,634
|
20.5 %
|
|
|
Operating income
|
136,719
|
11,135
|
147,854
|
17.3 %
|
146,404
|
(21,627)
|
124,777
|
16.6 %
|
|
|
Other income
(expense), net
|
10,533
|
(11,135)
|
(602)
|
(0.1) %
|
(22,310)
|
21,627
|
(683)
|
(0.1) %
|
|
|
Income before income
tax expense
|
138,176
|
—
|
138,176
|
16.1 %
|
121,325
|
—
|
121,325
|
16.0 %
|
|
|
(2)
|
Included in "Other
income (expense), net" for the six months ended June 30, 2023 and
2022, is expense of $1.4 million and
$1.5 million,
respectively, related to net changes in the fair value of
contingent consideration related to CBIZ's
prior
acquisitions.
|
|
(3)
|
Refer to the financial
highlights tables for a reconciliation of Non-GAAP financial
measures to the most directly comparable GAAP financial measure, and for additional
information as to the usefulness of the Non-GAAP financial measures
to
shareholders and
investors.
|
CBIZ, INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
(In thousands)
SELECT SEGMENT DATA
|
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|
2023
|
2022
|
2023
|
2022
|
Revenue
|
|
|
|
|
Financial Services
|
$ 290,930
|
$ 259,308
|
$ 634,016
|
$ 548,054
|
Benefits and Insurance Services
|
95,838
|
91,708
|
195,892
|
184,194
|
National Practices
|
11,734
|
10,936
|
23,200
|
21,426
|
Total
|
$
398,502
|
$
361,952
|
$
853,108
|
$
|
753,674
|
Gross Margin
|
Financial Services
|
$
47,485
|
$
49,665
|
$ 146,128
|
$ 128,611
|
Benefits and Insurance Services
|
17,464
|
16,688
|
40,595
|
36,517
|
National Practices
|
1,189
|
1,037
|
2,072
|
1,951
|
Operating expenses - unallocated (1):
|
|
|
|
|
Other expense
|
(6,521)
|
(8,512)
|
(10,823)
|
(12,445)
|
Deferred compensation
|
(5,102)
|
13,338
|
(9,862)
|
19,005
|
Total
|
$
54,515
|
$
72,216
|
$
168,110
|
$
173,639
|
|
|
(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/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)
|
|
|
Six Months Ended
June 30,
|
|
2023
|
2022
|
Net income
|
$
100,023
|
$
89,382
|
Adjustments to reconcile net income to net cash
provided by operating activities:
|
|
|
Depreciation and amortization expense
|
17,831
|
16,465
|
Gain on sale of operations, net
|
(99)
|
(135)
|
Bad debt expense, net of recoveries
|
805
|
1,263
|
Adjustments to contingent earnout
liability, net
|
1,445
|
1,478
|
Stock-based compensation expense
|
6,619
|
6,428
|
Other noncash
adjustments
|
4,671
|
4,890
|
Net income, after
adjustments to reconcile net income to net cash provided
by
operating
activities
|
131,295
|
119,771
|
Changes in assets and
liabilities, net of acquisitions and
divestitures
|
(101,566)
|
(91,263)
|
Net cash provided by operating activities
|
29,729
|
28,508
|
Net cash
used in investing activities
|
(65,617)
|
(89,756)
|
Net cash
provided by financing activities
|
21,793
|
91,655
|
Net (decrease) increase in cash, cash
equivalents and restricted cash
|
(14,095)
|
30,407
|
Cash, cash equivalents and restricted cash
at beginning of year
|
$
160,145
|
$
150,474
|
Cash, cash equivalents and restricted cash
at end of period
|
$
146,050
|
$
180,881
|
|
|
|
Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance
sheet:
|
Cash and
cash equivalents
|
$
3,692
|
$
3,881
|
Restricted cash
|
52,314
|
42,188
|
Cash equivalents included in funds
held for clients
|
90,044
|
134,812
|
Total cash, cash
equivalents and restricted cash
|
$
146,050
|
$
180,881
|
CBIZ, INC.
SELECT FINANCIAL DATA AND RATIOS
(UNAUDITED)
(In thousands)
|
|
|
|
|
June 30, 2023
|
|
December 31, 2022
|
|
Cash and cash
equivalents
|
3,692
|
4,697
|
|
Restricted cash
|
52,314
|
28,487
|
|
Accounts receivable, net
|
456,397
|
334,498
|
|
Current assets
before funds held for clients
|
554,814
|
397,113
|
|
Funds held for clients
|
131,374
|
171,313
|
|
Goodwill and other intangible assets, net
|
1,014,673
|
951,702
|
|
|
|
|
|
Total assets
|
2,088,755
|
1,879,124
|
|
|
|
|
|
Current liabilities before client fund obligations
|
367,908
|
338,940
|
|
Client fund
obligations
|
133,069
|
173,467
|
|
Total long-term debt, net
|
408,790
|
263,654
|
|
|
|
|
|
Total liabilities
|
1,312,712
|
1,165,672
|
|
|
|
|
|
Treasury stock
|
(882,088)
|
(824,778)
|
|
|
|
|
|
Total stockholders' equity
|
776,043
|
713,452
|
|
|
|
|
|
Debt to equity
|
52.7 %
|
37.0 %
|
|
Days sales
outstanding (DSO) (1)
|
89
|
74
|
|
|
|
|
|
Shares outstanding
|
49,822
|
50,180
|
|
Basic weighted average common shares
outstanding
|
50,164
|
51,502
|
|
Diluted weighted average common shares
outstanding
|
50,639
|
52,388
|
|
(1)
|
DSO is provided for
continuing operations and represents accounts receivable, net, at
the end of the period, divided by trailing
twelve month 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
June 30, 2022 was
88.
|
CBIZ, INC.
GAAP
RECONCILIATION
Net Income and Diluted Earnings
Per Share ("EPS")
to Adjusted Net Income, EPS and EBITDA(1)
(In thousands, except per share
data)
|
|
|
Three Months Ended
June 30,
2023
|
|
Three Months Ended
June 30,
2022
|
|
Amounts
|
EPS
|
|
Amounts
|
EPS
|
Net income
|
$
26,863
|
$
0.53
|
|
$
31,255
|
$
0.60
|
Adjustments:
|
|
|
|
|
|
Integration &
retention costs related to acquisitions (2)
|
865
|
0.03
|
|
2,048
|
0.04
|
Facility optimization costs (3)
|
221
|
—
|
|
—
|
—
|
Income tax effect
related to adjustments
|
(330)
|
(0.01)
|
|
(589)
|
(0.01)
|
Adjusted net income
|
$
27,619
|
$
0.55
|
|
$
32,714
|
$
0.63
|
Interest expense
|
$
5,534
|
|
|
$
1,645
|
|
Income tax expense
|
11,746
|
|
|
12,622
|
|
Gain on sale of operations, net
|
—
|
|
|
(135)
|
|
Tax effect
related to the adjustments above
|
330
|
|
|
589
|
|
Depreciation
|
3,116
|
|
|
2,828
|
|
Amortization
|
6,090
|
|
|
5,464
|
|
Adjusted EBITDA
|
$
54,435
|
|
|
$
55,727
|
|
|
Six Months Ended
June 30,
2023
|
|
Six Months Ended
June 30,
2022
|
|
Amounts
|
|
EPS
|
|
Amounts
|
|
EPS
|
Net income
|
$
100,023
|
|
$
1.98
|
|
$
89,382
|
|
$
1.70
|
Adjustments:
|
|
|
|
|
|
|
|
Transaction costs
related to acquisitions (2)
|
611
|
|
0.01
|
|
1,329
|
|
0.03
|
Integration &
retention costs related to acquisitions (2)
|
1,868
|
|
0.04
|
|
6,732
|
|
0.13
|
Facility optimization costs (3)
|
221
|
|
—
|
|
—
|
|
—
|
Income tax effect
related to adjustments
|
(746)
|
|
(0.02)
|
|
(2,122)
|
|
(0.05)
|
Adjusted net income
|
$
101,977
|
|
$
2.01
|
|
$
95,321
|
|
$
1.81
|
Interest expense
|
$
9,175
|
|
|
|
$
2,904
|
|
|
Income tax expense
|
38,153
|
|
|
|
31,943
|
|
|
Gain on sale of operations, net
|
(99)
|
|
|
|
(135)
|
|
|
Tax effect
related to the adjustments above
|
746
|
|
|
|
2,122
|
|
|
Depreciation
|
6,091
|
|
|
|
5,607
|
|
|
Amortization
|
11,740
|
|
|
|
10,858
|
|
|
Adjusted EBITDA
|
$
167,783
|
|
|
|
$
148,620
|
|
|
(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 measurement of performance under GAAP. Adjusted
net income, Adjusted EPS and Adjusted
EBITDA, which excludes
significant non-operating related gains and losses, are used by the
Company for its shareholders and
debt holders as a
performance measure to evaluate, assess and benchmark the Company's
operational 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 2023 related to the costs incurred related
to
the Somerset
acquisition and those reported in 2022 related to the Marks Paneth
acquisition.
|
|
(3)
|
These costs related to
incremental non-recurring lease expense incurred as a result
of CBIZ's
real estate optimization efforts.
|
CBIZ, INC.
GAAP
RECONCILIATION
Full Year 2023 Net Income and Diluted Earnings
Per Share ("EPS") to Adjusted Net Income, EPS
and EBITDA Guidance
(Amount in
millions, except per share data)
|
|
|
|
Full Year 2023 Guidance
|
|
Low
|
High
|
|
Amount
|
Per
Share
|
Amount
|
Per
Share
|
Net income
|
$ 121.1
|
$
2.31
|
$ 123.2
|
$
2.36
|
Transaction and integration costs
related to Somerset (1)
|
3.6
|
0.07
|
3.6
|
0.07
|
Income tax effect
related to adjustments
|
(1.0)
|
$ (0.02)
|
(1.0)
|
$ (0.02)
|
Adjusted net income
|
$ 123.7
|
$
2.36
|
$ 125.8
|
$
2.41
|
|
|
|
|
|
Interest expense
|
$ 20.8
|
|
$ 20.8
|
|
Income tax expense
|
47.2
|
|
47.2
|
|
Tax effect
related to the adjustments above
|
1.0
|
|
1.0
|
|
Depreciation and amortization
|
35.9
|
|
35.9
|
|
Adjusted EBITDA
|
$ 228.6
|
|
$ 230.7
|
|
|
|
|
|
|
GAAP diluted
EPS for 2022
|
|
$
2.01
|
|
$
2.01
|
Adjusted diluted EPS for 2022
(2)
|
|
$
2.13
|
|
$
2.13
|
GAAP diluted
EPS range
|
|
15 %
|
|
17 %
|
Adjusted diluted
EPS range
|
|
11 %
|
|
13 %
|
GAAP Net income for 2022
|
$ 105.4
|
|
$ 105.4
|
|
GAAP Net income range
|
15 %
|
|
17 %
|
|
(1)
|
Includes estimated
integration costs related to the Somerset acquisition. Such 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.
|
(2)
|
A reconciliation
between net income and adjusted net income and a reconciliation
between GAAP diluted EPS and Adjusted
diluted EPS for fiscal
year ended December 31, 2022 are presented as follows:
|
|
Year Ended December
31, 2022
|
|
In millions
|
|
EPS
|
|
Net income
|
$
105.4
|
$
|
|
2.01
|
Adjustments:
|
|
|
|
|
Gain on sale of assets, net
|
(2.4)
|
|
|
(0.05)
|
Transaction costs
related to Marks Paneth
|
1.3
|
|
|
0.03
|
Integration and retention costs
related to Marks Paneth
|
9.2
|
|
|
0.18
|
Income tax effect related to adjustments
|
(2.1)
|
|
|
(0.04)
|
Adjusted net income
|
$
111.4
|
$
|
|
2.13
|
View original
content:https://www.prnewswire.com/news-releases/cbiz-reports-second-quarter-and-first-half-2023-results-301886809.html
SOURCE CBIZ, Inc.