FOURTH-QUARTER HIGHLIGHTS:
- MARCUM ACQUISITION CLOSED NOVEMBER 1,
2024
- FOURTH-QUARTER REVENUE UP 40.5%; SAME-UNIT REVENUE UP 6.4%
- RESULTS INCLUDE MARCUM TRANSACTION AND INTEGRATION EXPENSES AND
SEASONAL RESULTS FROM CONSOLIDATED OPERATIONS IN NOVEMBER AND
DECEMBER
FULL-YEAR HIGHLIGHTS:
- TOTAL REVENUE UP 14.0%; SAME-UNIT REVENUE UP 4.8%
- GAAP EPS $0.78; ADJUSTED EPS,
EXCLUDING THE IMPACT OF THE MARCUM TRANSACTION AND EXCLUDING
ACQUISITION TRANSACTION AND INTEGRATION COSTS, $2.67, UP 10.8%
2025 OUTLOOK:
- TOTAL REVENUE WITHIN A RANGE OF $2.90
BILLION TO $2.95 BILLION
- GAAP EPS WITHIN A RANGE OF $1.97
TO $2.02 PER DILUTED SHARE
- ADJUSTED EPS WITHIN A RANGE OF $3.60 TO $3.65 PER
DILUTED SHARE
- ADJUSTED EBITDA WITHIN A RANGE OF $450
MILLION TO $456 MILLION
CLEVELAND, Feb. 26,
2025 /PRNewswire/ -- CBIZ, Inc. (NYSE: CBZ) ("CBIZ",
or the "Company"), a leading national professional services
advisor, today announced fourth-quarter and full-year results for
the period ended December 31, 2024.
On November 1, 2024, CBIZ closed
the previously announced acquisition of Marcum LLP (the
"Transaction"), the largest acquisition in the Company's history.
For the 2024 fourth quarter, CBIZ recorded revenue of $460.3 million, an increase of 40.5%, compared to
the same period in 2023, with a 33.2% increase attributed to the
Transaction and 7.3% increase excluding the impact of the
Transaction. Same-unit revenue increased by 6.4%.
For the full year ended December 31, 2024, CBIZ recorded
revenue of $1,813.5 million, an
increase of $222.3 million, or 14.0%,
over the $1,591.2 million for
the same period in 2023, with a 6.8% increase attributed to
the impact of the Transaction. Excluding the impact of the
Transaction, revenue increased by 7.1% with same-unit revenue
increasing by 4.8%, compared with the same period a year ago.
GAAP earnings per share for the full year was $0.78. Full-year 2024 Adjusted earnings per
share, excluding the impact of the Transaction and excluding
acquisition-related transaction and integration costs, was
$2.67, an increase of 10.8%, compared
with 2023.
To assist in evaluating the incremental impact of the
Transaction on consolidated results, a table reconciling the
non-GAAP Adjusted Net Income and Adjusted EPS the comparable GAAP
presentation is included in this Release.
In connection with closing the Transaction, the Company entered
into a new $2.0 billion credit
facility. On December 31, 2024, the outstanding indebtedness
under the Company's 2024 credit facilities was $1,420.9 million, with $556.0 million of unused borrowing capacity.
Jerry Grisko, CBIZ President and
Chief Executive Officer, said, "With the successful close of the
Marcum transaction last November, we are excited for this new
chapter in our Company's history and the opportunities it presents
for our collective team members, clients, and CBIZ shareholders.
With unmatched breadth of services and depth of expertise, CBIZ has
solidified our position as the largest provider of professional
services of our kind to middle-market businesses."
Grisko continued, "We're pleased to report fourth-quarter
same-unit revenue grew by 6.4% with full-year same-unit revenue up
by 4.8%. Excluding the revenue attributed to the newly acquired
Marcum operations, total revenue increased by 7.1% for the full
year. As expected, closing the transaction in the fourth quarter
greatly amplified the typical seasonality of our now larger
accounting and tax services business. Excluding the incremental
impact of the Marcum acquisition, CBIZ finished the year with
strong results within our full-year guidance for both revenue
growth and for Adjusted earnings per share. Closing the transaction
early in the fourth quarter enabled us to accelerate integration
and planning efforts, and allows us to continue our strong momentum
in 2025."
2025 Outlook
- Total revenue within a range of $2.90
billion to $2.95 billion
- Effective tax rate of approximately 29%
- Weighted average fully diluted share count of within a range of
64.5 to 65.0 million shares
- GAAP fully diluted earnings per share within a range of
$1.97 to $2.02
- Adjusted fully diluted earnings per share within a range of
$3.60 to $3.65
- Adjusted EBITDA within a range of $450
million to $456 million
Conference Call
CBIZ will host a conference call at
11 a.m. ET today to discuss its
results. Participants may register for the conference call at
https://dpregister.com/sreg/10196912/fe8127f4a0.The call will be
webcast and an archived replay will be available at
https://cbiz.gcs-web.com/investor-overview.
About CBIZ
CBIZ, Inc. (NYSE: CBZ) is a leading
professional services advisor to middle market businesses and
organizations nationwide. With industry knowledge and expertise in
accounting, tax, advisory, benefits, insurance, and technology,
CBIZ delivers forward-thinking insights and actionable solutions to
help clients anticipate what is next and discover new ways to
accelerate growth. CBIZ has more than 10,000 team members across
more than 160 locations in 22 major markets coast to coast. For
more information, visit www.cbiz.com.
Forward-Looking Statements
This release contains
"forward-looking statements" within the meaning of Section 27A
of the Securities Act of 1933 (the "Securities Act") and
Section 21E of the Securities Exchange Act of 1934 ("the
Exchange Act"). All statements other than statements of historical
fact included in this release regarding our financial position,
business strategy and plans and objectives for future performance,
including our "2025 Outlook" are forward-looking statements. You
can identify these statements by the fact that they do not relate
strictly to historical or current facts. Forward-looking statements
are commonly identified by the use of such terms and phrases as
"will," "could," "can," "may," "strive," "hope," "intend,"
"believe," "estimate," "continue," "plan," "expect," "project,"
"anticipate," "outlook," "foreseeable future," "seek" and words or
phrases of similar import in connection with any discussion of
future operating or financial performance. In particular, these
include statements relating to future actions, future performance
or results of current and anticipated services, sales efforts,
expenses, and financial results.
From time to time, we may also provide oral or written
forward-looking statements in other materials we release to the
public. All of our forward-looking statements in this release and
in any other public statements that we make, 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: 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, conflict of
interest rules, or other changes imposed on us by regulatory bodies
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 impact on our results of operations; we
may fail to realize the anticipated benefits of acquisitions, or
they may prove disruptive and could result in the combined business
failing to meet our expectations; our business could be adversely
affected if Marcum does not perform to our expectations or we
underestimate the liabilities we have assumed; recent Securities
& Exchange Commission ("SEC") and Public Company Accounting
Oversight Board ("PCAOB") sanctions against Marcum may adversely
impact our performance and reputation; if we are unable to
implement and maintain effective internal control over financial
reporting following the Marcum acquisition (the
"Transaction"), we may fail to prevent or detect material
misstatements in our financial statements, in which case investors
could lose confidence in the accuracy and completeness of our
financial reports and the market price of our common stock may
decline; we may not be able to acquire and finance additional
businesses, which could limit our ability to pursue our business
strategy; we will incur transaction, integration, and restructuring
costs in connection with our acquisition program; governmental
regulations and interpretations are subject to changes, which could
have a material adverse effect on our financial condition; changes
in the United States healthcare
environment, including new healthcare legislation, may adversely
affect the revenue and margins in our healthcare benefit business;
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 could
materially and adversely affect our business; we are subject to
risk as it relates to software that we license from third parties;
we are reliant on information processing systems and any failure or
disruptions of these systems could have a material adverse effect
on our business, financial condition and results of operations; we
could be held liable for errors and omissions; the business
services industry is competitive and fragmented, if we are unable
to compete effectively, our business, financial condition and
results of operations could be negatively impacted; given our
levels of share-based compensation, our tax rate may vary
significantly depending on our stock price; rapid technological
changes could significantly impact our competitive position, client
relationships and operating results and our ability to realize the
anticipated benefits of the Transaction; climate change legislation
or regulations restricting emissions of greenhouse gases could
result in increased operating costs; the widespread outbreak of a
communicable illness or any other public health crisis could
adversely affect our business, financial condition and results of
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 could 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; our increased leverage following the
Transaction may adversely impact our business; we may be more
sensitive to revenue fluctuations than other companies, which could
result in fluctuations in the market price of our common stock; the
significant number of shares issuable as the stock consideration in
the Transaction may adversely impact our stock price; the future
issuance of additional shares could adversely affect the price of
our common stock; there is volatility in our stock price; and the
price of our common stock could be adversely impacted if we do not
perform to expectations following the Transaction.
Such forward-looking statements can be affected by inaccurate
assumptions we might make or by known or unknown risks and
uncertainties. Many factors mentioned in "Item 1A. Risk Factors" of
our most recent Annual Report on Form 10-K, as updated in
subsequent filings with the SEC, will be important in determining
future results. Should one or more of these risks or assumptions
materialize, or should the underlying assumptions prove incorrect,
actual results may vary materially from those anticipated,
estimated, projected or implied.
Consequently, no forward-looking statement can be guaranteed.
Our actual future results may vary materially, and we undertake no
obligation to publicly update any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by law.
All forward-looking statements made in this release are made
only as 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.
Non-GAAP Financial Measurements
To supplement our
consolidated financial statements, which are prepared and presented
in accordance with GAAP, we also present the Adjusted Net Income
(Loss) and Adjusted Diluted Earnings Per Share ("EPS"), which are
non-GAAP measures. These non-GAAP measures, adjusted to exclude the
impact of the Marcum acquisition, integration costs, amortization
of acquired intangible assets, and other significant non-operating
related gain and losses management does not consider on-going in
nature.
The presentation of non-GAAP financial information is not
intended to be considered in isolation or as a substitute for, or
superior to, the financial information prepared and presented in
accordance with GAAP. We use these non-GAAP financial measures for
financial and operational decision-making, and to evaluate results
relative to employee compensation targets. We believe that these
non-GAAP financial measures provide meaningful supplemental
information to stockholders, debt holders, and other interested
parties in assessing our performance. These non-GAAP financial
measures also facilitate management's internal comparisons to our
historical performance by excluding significant acquisition
expenses, certain one-time non-recurring items, gains and
losses that management does not consider ongoing in nature. We
believe these non-GAAP financial measures are useful to investors
both because (1) they allow for greater transparency with respect
to key measures used by management in its financial and operational
decision-making and (2) they are used by our stockholders and
analyst community to determine the health of our business.
Management provides specific information regarding the GAAP
amounts excluded from or included in this non-GAAP financial
measurement. Additionally, management provides reconciliations of
these non-GAAP financial measurements to their most comparable
financial measures in accordance with GAAP. Please see the sections
captioned 'GAAP Reconciliation' within the Appendix for the
reconciliations.
|
CBIZ,
INC.
FINANCIAL HIGHLIGHTS
(UNAUDITED)
THREE MONTHS ENDED
DECEMBER 31, 2024 AND 2023(3)
(In thousands,
except percentages and per share data)
|
|
|
Three Months Ended
December 31,
|
|
|
2024
|
|
%
|
|
2023
|
|
%
|
|
Revenue
|
|
$
460,279
|
|
100.0 %
|
|
$
327,547
|
|
100.0 %
|
|
Operating expenses
(1)
|
|
522,179
|
|
113.4
|
|
340,844
|
|
104.1
|
|
Gross
loss
|
|
(61,900)
|
|
(13.4)
|
|
(13,297)
|
|
(4.1)
|
|
Corporate general and
administrative expenses (1)
|
|
44,765
|
|
9.7
|
|
13,438
|
|
4.1
|
|
Operating
loss
|
|
(106,665)
|
|
(23.1)
|
|
(26,735)
|
|
(8.2)
|
|
Other (expense)
income:
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(19,016)
|
|
(4.1)
|
|
(5,108)
|
|
(1.6)
|
|
Loss on sale of
operations, net
|
|
(21)
|
|
—
|
|
—
|
|
—
|
|
Other income, net
(2)
|
|
331
|
|
0.1
|
|
12,774
|
|
3.9
|
|
Total other (expense)
income, net
|
|
(18,706)
|
|
(4.0)
|
|
7,666
|
|
2.3
|
|
Loss before income
tax benefit
|
|
(125,371)
|
|
(27.1)
|
|
(19,069)
|
|
(5.9)
|
|
Income tax
benefit
|
|
(34,648)
|
|
|
|
(6,332)
|
|
|
|
Net
loss
|
|
$
(90,723)
|
|
(19.7) %
|
|
$
(12,737)
|
|
(3.9) %
|
|
|
|
|
|
|
|
|
|
|
Diluted loss per
share
|
|
$
(1.53)
|
|
|
|
$ (0.26)
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average common shares outstanding
|
|
59,149
|
|
|
|
49,795
|
|
|
|
Other
data:
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted EPS
(3)
|
|
$
(0.20)
|
|
|
|
$ (0.26)
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 years ended
December 31, 2024 and 2023:
|
|
|
|
Three Months Ended
December 31,
|
|
2024
|
|
2023
|
|
(Amounts in
thousands)
|
|
Operating
expenses
|
$
612
|
|
$
10,339
|
|
Corporate general and
administrative expenses
|
$
(77)
|
|
$
1,475
|
|
Other income,
net
|
$
535
|
|
$
11,814
|
|
Excluding the impact of
the above-mentioned income and expenses related to the deferred
compensation plan, the operating results for the years ended
December 31, 2024 and 2023:
|
|
Three Months Ended December 31,
|
|
Three Months Ended December 31,
|
|
2024
|
|
2023
|
|
(Amounts in
thousands, except percentages)
|
|
As
Reported
|
|
NQDCP
|
|
Adjusted
|
|
% of
Revenue
|
|
As
Reported
|
|
NQDCP
|
|
Adjusted
|
|
% of
Revenue
|
|
Gross margin
|
$ (61,900)
|
|
$
612
|
|
$ (61,288)
|
|
(13.3) %
|
|
$ (13,297)
|
|
$ 10,339
|
|
$
(2,958)
|
|
(0.9) %
|
|
Operating
loss
|
(106,665)
|
|
535
|
|
(106,130)
|
|
(23.1) %
|
|
(26,735)
|
|
11,814
|
|
(14,921)
|
|
(4.6) %
|
|
Other income (expense),
net
|
331
|
|
(535)
|
|
(204)
|
|
— %
|
|
12,774
|
|
(11,814)
|
|
960
|
|
0.3 %
|
|
Income before income
tax expense
|
(125,371)
|
|
—
|
|
(125,371)
|
|
(27.1) %
|
|
(19,069)
|
|
—
|
|
(19,069)
|
|
(5.9) %
|
|
|
|
(2)
|
Deferred compensation
decreased "Other income, net" by $0.5 million for the three months
ended December 31, 2024, and by $11.8 million for the same
period in 2023. These amounts offset the net deferred compensation
within operating expense and corporate G&A expense. There is no
impact to the "Income (loss) before income tax expense (benefit)".
Excluding deferred compensation from Other income (expense), net
the adjusted amount would be an expense of $0.2 million and income
of $1.0 million for the three months ended December 31, 2024,
and 2023, respectively.
|
|
|
|
(3)
|
Refer to the schedules
reconciling Adjusted Net loss and EPS 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)
TWELVE MONTHS ENDED
DECEMBER 31, 2024 AND 2023(3)
(In thousands,
except percentages and per share data)
|
|
|
Twelve Months Ended
December 31,
|
|
|
2024
|
|
%
|
|
2023
|
|
%
|
|
Revenue
|
|
$
1,813,472
|
|
100.0 %
|
|
$
1,591,194
|
|
100.0 %
|
|
Operating expenses
(1)
|
|
1,631,003
|
|
89.9
|
|
1,367,990
|
|
86.0
|
|
Gross
margin
|
|
182,469
|
|
10.1
|
|
223,204
|
|
14.0
|
|
Corporate general and
administrative expenses (1)
|
|
108,753
|
|
6.0
|
|
57,965
|
|
3.6
|
|
Operating
income
|
|
73,716
|
|
4.1
|
|
165,239
|
|
10.4
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(34,379)
|
|
(1.9)
|
|
(20,131)
|
|
(1.3)
|
|
Gain on sale of
operations, net
|
|
4,932
|
|
0.3
|
|
176
|
|
—
|
|
Other income, net
(2)
|
|
13,538
|
|
0.7
|
|
21,019
|
|
1.3
|
|
Total other (expense)
income, net
|
|
(15,909)
|
|
(0.9)
|
|
1,064
|
|
—
|
|
Income before income
tax expense
|
|
57,807
|
|
3.2
|
|
166,303
|
|
10.4
|
|
Income tax
expense
|
|
16,769
|
|
|
|
45,335
|
|
|
|
Net
income
|
|
$
41,038
|
|
2.3 %
|
|
$
120,968
|
|
7.6 %
|
|
|
|
|
|
|
|
|
|
|
Diluted income per
share
|
|
$
0.78
|
|
|
|
$
2.39
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average common shares outstanding
|
|
52,661
|
|
|
|
50,557
|
|
|
|
Other
data:
|
|
|
|
|
|
|
|
|
|
Adjusted EPS
(3)
|
|
$
2.67
|
|
|
|
$
2.41
|
|
|
|
|
|
(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 years ended
December 31, 2024 and 2023:
|
|
|
|
Year Ended December
31,
|
|
2024
|
|
2023
|
|
(Amounts in
thousands)
|
|
Operating
expenses
|
$
18,776
|
|
$
17,192
|
|
Corporate general and
administrative expenses
|
$
2,367
|
|
$
2,296
|
|
Other income,
net
|
$
21,143
|
|
$
19,488
|
|
Excluding the impact of
the above-mentioned income and expenses related to the deferred
compensation plan, the operating results for the years ended
December 31, 2024 and 2023:
|
|
|
Year Ended December
31,
|
|
Year Ended December
31,
|
|
2024
|
|
2023
|
|
(Amounts in
thousands, except percentages)
|
|
As
Reported
|
|
NQDCP
|
|
Adjusted
|
|
% of
Revenue
|
|
As
Reported
|
|
NQDCP
|
|
Adjusted
|
|
% of
Revenue
|
|
Gross margin
|
$
182,469
|
|
$
18,776
|
|
$
201,245
|
|
11.1 %
|
|
$
223,204
|
|
$
17,192
|
|
$
240,396
|
|
15.1 %
|
|
Operating
income
|
73,716
|
|
21,143
|
|
94,859
|
|
5.2 %
|
|
165,239
|
|
19,488
|
|
184,727
|
|
11.6 %
|
|
Other income (expense),
net
|
13,538
|
|
(21,143)
|
|
(7,605)
|
|
(0.4) %
|
|
21,019
|
|
(19,488)
|
|
1,531
|
|
0.1 %
|
|
Income before income
tax expense
|
57,807
|
|
—
|
|
57,807
|
|
3.2 %
|
|
166,303
|
|
—
|
|
166,303
|
|
10.4 %
|
|
|
|
(2)
|
Deferred compensation
decreased "Other income, net" by $21.1 million for the twelve
months ended December 31, 2024, and by $19.5 million for the same
period in 2023. These amounts offset the net deferred compensation
within operating expense and corporate G&A expense. There is no
impact to the "Income (loss) before income tax expense. Excluding
deferred compensation from Other income (expense), net the adjusted
amount would be an expense of $7.6 million which was primarily
attributable to the net change in the fair value of contingent
consideration related to the prior acquisitions for the twelve
months ended December 31, 2024, and an income of $1.5 million for
the same period in 2023.
|
|
|
|
(3)
|
Refer to the schedules
reconciling Adjusted Net Income and EPS 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
December 31,
|
|
Twelve Months Ended
December 31,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
Financial
Services
|
|
$ 358,381
|
|
$
228,298
|
|
$
1,362,539
|
|
$
1,160,686
|
|
Benefits and Insurance
Services
|
|
91,181
|
|
86,426
|
|
401,048
|
|
382,605
|
|
National
Practices
|
|
10,717
|
|
12,823
|
|
49,885
|
|
47,903
|
|
Total
|
|
$
460,279
|
|
$
327,547
|
|
$
1,813,472
|
|
$
1,591,194
|
|
|
|
|
|
|
|
|
|
|
Gross (Loss)
Margin
|
|
|
|
|
|
|
|
|
|
Financial Services
(1)
|
|
$ (66,231)
|
|
$
(9,210)
|
|
$ 148,918
|
|
$
185,610
|
|
Benefits and Insurance
Services
|
|
12,754
|
|
10,849
|
|
72,776
|
|
72,095
|
|
National
Practices
|
|
1,154
|
|
1,558
|
|
5,260
|
|
4,843
|
|
Operating expenses -
unallocated (2)
|
|
|
|
|
|
|
|
|
|
Other
expense
|
|
(8,965)
|
|
(6,155)
|
|
(25,709)
|
|
(22,152)
|
|
Deferred
compensation
|
|
(612)
|
|
(10,339)
|
|
(18,776)
|
|
(17,192)
|
|
Total
|
|
$
(61,900)
|
|
$
(13,297)
|
|
$
182,469
|
|
$
223,204
|
|
|
|
(1)
|
Gross (loss) margin for
the Financial Services practice group included approximately $4.5
million and $5.0 million of integration costs primarily related to
Marcum Acquisition for the three months and twelve months ended
December 31, 2024, respectively. Gross (loss) margin for the
Financial Services practice group included approximately $0.1
million and $1.2 million of one-time and non-recurring integration
costs related to the Somerset acquisition for the three months and
twelve months ended December 31, 2023, respectively.
|
|
|
|
(2)
|
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, 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 in "Operating expenses" and
"Corporate, general and administrative expenses," and offset in
"Other income, net."
|
|
CBIZ,
INC.
SELECT CASH FLOW
DATA (UNAUDITED)
(In
thousands)
|
|
|
Twelve Months Ended
December 31,
|
|
|
2024
|
|
2023
|
|
Net
income
|
|
$
41,038
|
|
$
120,968
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and
amortization expense
|
|
48,060
|
|
36,269
|
|
Gain on sale of
operations, net
|
|
(4,932)
|
|
(176)
|
|
Bad debt expense, net
of recoveries
|
|
3,792
|
|
1,551
|
|
Adjustments to
contingent earnout liability, net
|
|
6,993
|
|
2,743
|
|
Stock-based
compensation expense
|
|
13,836
|
|
12,286
|
|
Other noncash
adjustments
|
|
(8,491)
|
|
8,908
|
|
Net income, after
adjustments to reconcile net income to net cash provided by
operating activities
|
|
100,296
|
|
182,549
|
|
Changes in assets and
liabilities, net of acquisitions and divestitures
|
|
23,396
|
|
(29,042)
|
|
Net cash provided by
operating activities
|
|
123,692
|
|
153,507
|
|
Net cash used in
investing activities
|
|
(1,129,283)
|
|
(79,393)
|
|
Net cash used in
financing activities
|
|
1,035,613
|
|
(77,111)
|
|
Net (decrease)
increase in cash, cash equivalents and restricted
cash
|
|
30,022
|
|
(2,997)
|
|
Cash, cash equivalents
and restricted cash at beginning of year
|
|
$
157,148
|
|
$
160,145
|
|
Cash, cash
equivalents and restricted cash at end of period
|
|
$
187,170
|
|
$
157,148
|
|
|
|
|
|
|
Reconciliation of
cash, cash equivalents and restricted cash to the consolidated
balance sheet:
|
|
Cash and cash
equivalents
|
|
13,826
|
|
8,090
|
|
Restricted
cash
|
|
38,661
|
|
30,362
|
|
Cash equivalents
included in funds held for clients
|
|
$
134,683
|
|
$
118,696
|
|
Total cash, cash
equivalents and restricted cash
|
|
$
187,170
|
|
$
157,148
|
|
CBIZ,
INC.
SELECT FINANCIAL
DATA AND RATIOS (UNAUDITED)
(In
thousands)
|
|
|
December 31,
2024
|
|
December 31,
2023
|
|
Cash and cash
equivalents
|
|
$
13,826
|
|
$
8,090
|
|
Restricted
cash
|
|
38,661
|
|
30,362
|
|
Accounts receivable,
net
|
|
534,858
|
|
380,152
|
|
Current assets before
funds held for clients
|
|
659,873
|
|
453,499
|
|
Funds held for
clients
|
|
175,853
|
|
159,186
|
|
Goodwill and other
intangible assets, net
|
|
2,945,470
|
|
1,008,604
|
|
|
|
|
|
|
Total
assets
|
|
$
4,470,883
|
|
$
2,043,592
|
|
|
|
|
|
|
Current liabilities
before client fund obligations, excluding current debt
|
|
463,697
|
|
352,028
|
|
Client fund
obligations
|
|
175,928
|
|
159,893
|
|
Total current portion
of long-term debt, net
|
|
66,177
|
|
—
|
|
Total long-term debt,
net
|
|
1,333,755
|
|
310,826
|
|
|
|
|
|
|
Total
liabilities
|
|
$
2,690,900
|
|
$
1,251,974
|
|
|
|
|
|
|
Treasury
stock
|
|
(910,601)
|
|
(899,093)
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
$
1,779,983
|
|
$
791,618
|
|
|
|
|
|
|
Debt to
equity
|
|
78.6 %
|
|
39.3 %
|
|
Days sales outstanding
(DSO) (1)
|
|
73
|
|
78
|
|
|
|
|
|
|
Shares
outstanding
|
|
50,198
|
|
49,814
|
|
Basic weighted average
common shares outstanding
|
|
52,375
|
|
49,989
|
|
Diluted weighted
average common shares outstanding
|
|
52,661
|
|
50,557
|
|
|
|
(1)
|
DSO 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.
|
|
CBIZ,
INC.
GAAP
RECONCILIATION
Net (Loss) Income
and Diluted Earnings Per Share ("EPS") to Adjusted Net (Loss)
Income and EPS(1)
(In thousands,
except per share data)
|
|
Three Months
Ended
December 31, 2024
|
|
Three Months
Ended
December 31,
2023
|
|
Amounts
|
|
EPS
|
|
Amounts
|
|
EPS
|
|
Net
loss
|
$
(90,723)
|
|
$
(1.53)
|
|
$
(12,737)
|
|
$
(0.26)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Gain on sale of
assets, net
|
—
|
|
—
|
|
(1,363)
|
|
(0.03)
|
|
Marcum
impact(2)
|
105,653
|
|
1.79
|
|
—
|
|
—
|
|
Integration costs
related to acquisitions (3)
|
256
|
|
—
|
|
331
|
|
0.01
|
|
Other adjustments
(4)
|
4,005
|
|
0.07
|
|
431
|
|
0.01
|
|
Income tax effect
related to adjustments
|
(29,244)
|
|
(0.49)
|
|
258
|
|
0.01
|
|
EPS impact due to
share count changes (5)
|
—
|
|
(0.04)
|
|
—
|
|
—
|
|
Adjusted net
loss
|
$
(10,053)
|
|
$
(0.20)
|
|
$
(13,080)
|
|
$
(0.26)
|
|
|
Twelve Months
Ended
December 31, 2024
|
|
Twelve Months
Ended
December 31,
2023
|
|
Amounts
|
|
EPS
|
|
Amounts
|
|
EPS
|
|
Net
income
|
$
41,038
|
|
$
0.78
|
|
$ 120,968
|
|
$
2.39
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Gain on sale of
assets, net
|
—
|
|
—
|
|
(2,863)
|
|
(0.06)
|
|
Marcum impact
(2)
|
127,071
|
|
2.41
|
|
—
|
|
—
|
|
Integration costs
related to acquisitions (3)
|
1,515
|
|
0.03
|
|
3,393
|
|
0.08
|
|
Gain on sale of
operations, net
|
(4,932)
|
|
(0.09)
|
|
(176)
|
|
—
|
|
Other adjustments
(4)
|
4,324
|
|
0.08
|
|
731
|
|
0.01
|
|
Income tax effect
related to adjustments
|
(34,322)
|
|
(0.65)
|
|
(296)
|
|
(0.01)
|
|
EPS impact due to
share count changes (5)
|
—
|
|
0.11
|
|
—
|
|
—
|
|
Adjusted net
income
|
$ 134,694
|
|
$
2.67
|
|
$ 121,757
|
|
$
2.41
|
|
|
|
(1)
|
This table reconciles
Adjusted net (loss) income and Adjusted diluted EPS to the most
directly comparable GAAP financial measures. Adjusted net (loss)
income and Adjusted diluted EPS exclude the impact of Marcum
acquisition and other significant non-operating related gains and
losses that management does not consider on-going in nature. Please
refer to the 'Non-GAAP Financial Measures' section for further
management discussion.
|
|
|
|
(2)
|
Adjustments for the
three months ended December 31, 2024 include $57.1 million of
operating loss during the two months period subsequent to the
Transaction, $34.1 million acquisition related costs including
$20.9 million transaction cost, as well as $14.5 million
incremental interest incurred to finance the acquisition.
Adjustments for the twelve months ended December 31, 2024 include
$57.1 million of operating loss during two months period subsequent
to the Transaction, $55.5 million acquisition related costs
including $28.7 million transaction cost, as well as $14.5 million
incremental interest incurred to finance the
acquisition.
|
|
|
|
(3)
|
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 CPAs and
Advisors ( "Somerset").
|
|
|
|
(4)
|
These costs primarily
include contingent loss accrual related to certain legal matters as
well as costs associated with the Company's facility optimization
effort.
|
|
|
|
(5)
|
This adjustment
excludes the weighted average shares impact of deferred share
purchase consideration related to the Marcum acquisition. For the
three and twelve months ended December 31, 2024, a total of 5.4
million and 2.3 million of deferred shares, respectively, were
included in the weighted average shares outstanding amount for the
EPS calculation.
|
|
CBIZ,
INC.
GAAP
RECONCILIATION
Full Year 2025
Diluted Earnings Per Share ("EPS") and Adjusted EBITDA
Guidance
|
|
Full Year 2025
Guidance
|
|
(Amounts in millions
except per share data)
|
|
Low
|
|
High
|
|
Amounts
|
EPS
|
|
Amounts
|
EPS
|
|
GAAP Net
Income
|
$
127.9
|
$
1.97
|
|
$
131.1
|
$
2.02
|
|
Amortization of
acquired intangible assets (1)
|
75.1
|
1.15
|
|
75.1
|
1.15
|
|
Integration costs
related to acquisitions (2)
|
75.0
|
1.15
|
|
75.0
|
1.15
|
|
Income tax effect
related to adjustments
|
(43.5)
|
(0.67)
|
|
(43.5)
|
(0.67)
|
|
Adjusted Net
Income
|
$
234.5
|
$
3.60
|
|
$
237.7
|
$
3.65
|
|
Depreciation
|
22.1
|
|
|
22.1
|
|
|
Interest
expense
|
99.3
|
|
|
99.3
|
|
|
Income tax expense
included the tax effect related to the adjustments above
|
94.5
|
|
|
97.1
|
|
|
Adjusted
EBITDA
|
$
450.4
|
|
|
$
456.2
|
|
|
|
|
(1)
|
These costs represent
the amortization of the intangible assets, such as client lists,
recognized as a result of applying Accounting Standards
Codification Topic, Business Combinations. The amount of
amortization expense recorded in each period is significantly
affected by the size and timing of our acquisitions.
|
|
|
|
(2)
|
These costs include,
but are not limited to, certain consulting, technology, personnel,
as well as other operating and general administrative costs
associated with the integration of Marcum acquisition.
|
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SOURCE CBIZ, Inc.
