FOURTH-QUARTER HIGHLIGHTS:
- TOTAL REVENUE UP 11.0%; SAME-UNIT REVENUE UP 6.8%
FULL-YEAR HIGHLIGHTS:
- TOTAL REVENUE UP 12.7%; SAME-UNIT REVENUE UP 7.4%
- GAAP EPS UP 18.9%; ADJUSTED EPS UP 13.1%
- NET INCOME UP 14.8%; ADJUSTED EBITDA UP 17.7%
2024 OUTLOOK:
- TOTAL REVENUE UP 7% TO 9%
- GAAP EPS UP 13% TO 15%; or $2.70
TO $2.75
- ADJUSTED EPS UP 12% TO 14%; or $2.70 TO $2.75
CLEVELAND, Feb. 15,
2024 /PRNewswire/ -- CBIZ, Inc., (NYSE: CBZ) ("CBIZ",
or the "Company"), a leading provider of financial, insurance and
advisory services, today announced fourth-quarter and full-year
results for the period ended December 31,
2023.
For the 2023 fourth quarter, CBIZ recorded revenue of
$327.5 million, an increase of
$32.5 million, or 11.0%, compared
with $295.0 million reported for
the same period in 2022. Acquired operations contributed
$12.6 million, or 4.2%, to
fourth-quarter 2023 revenue growth. Same-unit revenue increased by
$19.9 million, or 6.8%, for the
quarter, compared with the same period a year ago. Net loss was
$12.7 million in the 2023 fourth
quarter, compared with a net loss of $11.5
million for the same period a year ago.
For the full year ended December 31, 2023, CBIZ recorded
revenue of $1,591.2 million, an
increase of $179.2 million, or 12.7%,
over the $1,412.0 million for
the same period in 2022. Acquired operations contributed
$75.2 million, or 5.3%, to revenue
growth in the twelve months ended December 31, 2023. Same-unit
revenue increased by $104.0 million,
or 7.4%, compared with the same period a year ago. Net income was
$121.0 million, or $2.39 per diluted share, for the twelve months
ended December 31, 2023, compared with $105.4 million, or $2.01 per diluted share, for the same period a
year ago.
Excluding non-recurring transaction and first-year integration
expenses related to the acquisitions of Marks Paneth in
January 2022 and Somerset in February
2023, as well as certain non-recurring gains and losses,
Adjusted net loss was $13.3 million
in the fourth quarter of 2023 compared with Adjusted net loss of
$10.7 million for the same period a
year ago. Adjusted loss per share was $0.26 in the fourth quarter of 2023, compared
with Adjusted loss per share of $0.21
for the same period a year ago. Adjusted EBITDA for the fourth
quarter was a loss of $5.4 million,
compared with a loss of $4.4 million
for the same period in 2022.
Adjusted net income was $121.9
million, or $2.41 per diluted
share, for the full year ended December 31, 2023, compared
with $111.4 million, or $2.13 per diluted share, for the same period a
year ago. Adjusted EBITDA for the twelve months ended December 31, 2023, was $223.8 million, compared with $190.1 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 at the end of this
release.
For the full year ended December 31, 2023, the Company
repurchased a total of 1.3 million shares of its common stock on
the open market. The balance outstanding on the Company's unsecured
credit facility on December 31, 2023, was $312.4 million, with $272.0 million of unused borrowing capacity.
Jerry Grisko, CBIZ President and
Chief Executive Officer, said, "Our continued strong performance in
2023 demonstrates the strength and resilience of our business
model. Despite economic uncertainty throughout much of the
year brought on by rising interest rates, threats of a recession
and global unrest, demand remained strong for both our
essential, recurring services and our more project-based advisory
services. We also benefited from the three acquisitions and two
'tuck in' transactions we completed during the year which added
approximately $67.3 million of
annualized revenue. We are pleased to have recently announced the
acquisition of Erickson, Brown & Kloster, LLC, (EBK), a CPA
firm providing a broad range of accounting and tax services located
in Colorado Springs, Colorado.
This acquisition, effective February 1,
2024, will complement our growing Denver Financial Services
practice."
Grisko continued, "As we head into 2024, we expect the economic
climate to remain generally favorable for the types of services
that we provide to our clients. Our full-year outlook for revenue,
GAAP EPS and adjusted EPS reflect our confidence in our ability to
continue to post strong results in business climates that may
present some level of uncertainty, including the inherent
uncertainty that often exists during an election year."
2024 Outlook
- The Company expects total revenue to grow within a range of 7%
to 9% over the prior year.
- The Company expects an effective tax rate of approximately
28%.
- The Company expects a weighted average fully diluted share
count of approximately 50.0 to 50.5 million shares.
- The Company expects GAAP fully diluted earnings per share to
grow within a range of 13% to 15%, to $2.70 to $2.75 per
share over the $2.39 per share
reported for 2023.
- The Company expects Adjusted fully diluted earnings per share
to grow within a range of 12% to 14%, to $2.70 to $2.75 per
share over the Adjusted earnings per share of $2.41 per share reported for 2023.
Conference Call
CBIZ will host a conference call at 11:00
a.m. (ET) today to discuss its results. Participants may
register for the conference call at
https://dpregister.com/sreg/10186120/fb802b0968.The call will be
webcast and an archived replay will be available at
https://cbiz.gcs-web.com/investor-overview.
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; 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 will 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; there is
volatility in our stock price. 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.
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
DECEMBER 31, 2023 AND 2022
(In thousands,
except percentages and per share data)
|
|
|
|
Three Months Ended
December 31,
|
|
|
2023
|
|
%
|
|
2022
|
|
%
|
Revenue
|
|
$
327,547
|
|
100.0 %
|
|
$
295,043
|
|
100.0 %
|
Operating expenses
(1)
|
|
340,844
|
|
104.1
|
|
302,560
|
|
102.5
|
Gross
loss
|
|
(13,297)
|
|
(4.1)
|
|
(7,517)
|
|
(2.5)
|
Corporate general and
administrative expenses (1)
|
|
13,438
|
|
4.1
|
|
11,895
|
|
4.0
|
Operating
loss
|
|
(26,735)
|
|
(8.2)
|
|
(19,412)
|
|
(6.5)
|
Other (expense)
income:
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(5,108)
|
|
(1.6)
|
|
(2,830)
|
|
(0.9)
|
Gain on sale of
operations, net
|
|
—
|
|
—
|
|
102
|
|
—
|
Other income, net
(1) (2)
|
|
12,774
|
|
3.9
|
|
5,689
|
|
1.9
|
Total other income,
net
|
|
7,666
|
|
2.3
|
|
2,961
|
|
1.0
|
Loss before income
tax benefit
|
|
(19,069)
|
|
(5.9)
|
|
(16,451)
|
|
(5.5)
|
Income tax
benefit
|
|
(6,332)
|
|
|
|
(4,953)
|
|
|
Net
loss
|
|
(12,737)
|
|
(3.9) %
|
|
(11,498)
|
|
(3.9) %
|
|
|
|
|
|
|
|
|
|
Diluted loss per
share
|
|
$ (0.26)
|
|
|
|
$ (0.23)
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average common shares outstanding
|
|
49,795
|
|
|
|
50,538
|
|
|
Other
data:
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(3)
|
|
$
(5,434)
|
|
|
|
$
(4,356)
|
|
|
Adjusted EPS
(3)
|
|
$ (0.26)
|
|
|
|
$ (0.21)
|
|
|
|
|
(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 in "Other income, net." The
deferred compensation plan has no impact on "Loss before income tax
benefit."
|
|
|
|
Income and expenses
related to the deferred compensation plan for the three months
ended December 31, 2023, and 2022 are as follows (in
thousands):
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
2023
|
|
% of
Revenue
|
|
2022
|
|
% of
Revenue
|
Operating
expenses
|
|
$ 10,339
|
|
3.2 %
|
|
$
5,748
|
|
1.9 %
|
Corporate general and
administrative expenses
|
|
1,475
|
|
0.5 %
|
|
926
|
|
0.3 %
|
Other income,
net
|
|
11,814
|
|
3.7 %
|
|
6,674
|
|
2.2 %
|
|
|
|
|
|
|
|
Excluding the impact of
the above-mentioned income and expenses related to the deferred
compensation plan, the operating results for the three months ended
December 31, 2023, and 2022 are as follows (in
thousands):
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
2023
|
|
2022
|
|
As
Reported
|
|
Deferred
Compensation
Plan
|
|
Adjusted
|
|
% of
Revenue
|
|
As
Reported
|
|
Deferred
Compensation
Plan
|
|
Adjusted
|
|
% of
Revenue
|
Gross (loss)
margin
|
$ (13,297)
|
|
$ 10,339
|
|
$
(2,958)
|
|
(0.9) %
|
|
$
(7,517)
|
|
$
5,748
|
|
$
(1,769)
|
|
(0.6) %
|
Operating
loss
|
(26,735)
|
|
11,814
|
|
(14,921)
|
|
(4.6) %
|
|
(19,412)
|
|
6,674
|
|
(12,738)
|
|
(4.3) %
|
Other income (expense),
net
|
12,774
|
|
(11,814)
|
|
960
|
|
0.3 %
|
|
5,689
|
|
(6,674)
|
|
(985)
|
|
(0.3) %
|
Loss before income tax
benefit
|
(19,069)
|
|
—
|
|
(19,069)
|
|
(5.8) %
|
|
(16,451)
|
|
—
|
|
(16,451)
|
|
(5.6) %
|
|
|
(2)
|
Included in "Other
income, net" for the three months ended December 31, 2023 and 2022,
is expense of $0.7 million and $0.5 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 stockholders and investors.
|
CBIZ,
INC.
FINANCIAL HIGHLIGHTS
(UNAUDITED)
TWELVE MONTHS ENDED
DECEMBER 31, 2023 AND 2022
(In thousands,
except percentages and per share data)
|
|
|
|
Twelve Months Ended
December 31,
|
|
|
2023
|
|
%
|
|
2022
|
|
%
|
Revenue
|
|
$
1,591,194
|
|
100.0 %
|
|
$
1,411,979
|
|
100.0 %
|
Operating expenses
(1)
|
|
1,367,990
|
|
86.0
|
|
1,188,612
|
|
84.2
|
Gross
margin
|
|
223,204
|
|
14.0
|
|
223,367
|
|
15.8
|
Corporate general and
administrative expenses (1)
|
|
57,965
|
|
3.6
|
|
55,023
|
|
3.8
|
Operating
income
|
|
165,239
|
|
10.4
|
|
168,344
|
|
12.0
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(20,131)
|
|
(1.3)
|
|
(8,039)
|
|
(0.6)
|
Gain on sale of
operations, net
|
|
176
|
|
—
|
|
413
|
|
—
|
Other income (expense),
net (1) (2)
|
|
21,019
|
|
1.3
|
|
(19,243)
|
|
(1.4)
|
Total other income
(expense), net
|
|
1,064
|
|
—
|
|
(26,869)
|
|
(2.0)
|
Income before income
tax expense
|
|
166,303
|
|
10.4
|
|
141,475
|
|
10.0
|
Income tax
expense
|
|
45,335
|
|
|
|
36,121
|
|
|
Net
income
|
|
120,968
|
|
7.6 %
|
|
105,354
|
|
7.5 %
|
|
|
|
|
|
|
|
|
|
Diluted income per
share
|
|
$
2.39
|
|
|
|
$ 2.01
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average common shares outstanding
|
|
50,557
|
|
|
|
52,388
|
|
|
Other
data:
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(3)
|
|
$
223,788
|
|
|
|
$
190,125
|
|
|
Adjusted EPS
(3)
|
|
$
2.41
|
|
|
|
$ 2.13
|
|
|
|
|
(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 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 twelve months
ended December 31, 2023, and 2022 are as follows (in
thousands):
|
|
|
|
|
Twelve Months Ended
December 31,
|
|
|
2023
|
|
% of
Revenue
|
|
2022
|
|
% of
Revenue
|
Operating expenses
(income)
|
|
$ 17,192
|
|
1.1 %
|
|
$
(17,252)
|
|
(1.2) %
|
Corporate general and
administrative expenses (income)
|
|
2,296
|
|
0.1 %
|
|
(2,393)
|
|
(0.2) %
|
Other income (expense),
net
|
|
19,488
|
|
1.2 %
|
|
(19,645)
|
|
(1.4) %
|
|
|
|
|
|
|
|
Excluding the impact of
the above-mentioned income and expenses related to the deferred
compensation plan, the operating results for the twelve months
ended December 31, 2023, and 2022 are as follows (in
thousands):
|
|
|
|
|
|
Twelve Months Ended
December 31,
|
|
2023
|
|
2022
|
|
As
Reported
|
|
Deferred
Compensation
Plan
|
|
Adjusted
|
|
% of
Revenue
|
|
As
Reported
|
|
Deferred
Compensation
Plan
|
|
Adjusted
|
|
% of
Revenue
|
Gross margin
|
$ 223,204
|
|
$ 17,192
|
|
$ 240,396
|
|
15.1 %
|
|
$ 223,367
|
|
$
(17,252)
|
|
$ 206,115
|
|
14.6 %
|
Operating
income
|
165,239
|
|
19,488
|
|
184,727
|
|
11.6 %
|
|
168,344
|
|
(19,645)
|
|
148,699
|
|
10.5 %
|
Other income (expense),
net
|
21,019
|
|
(19,488)
|
|
1,531
|
|
0.1 %
|
|
(19,243)
|
|
19,645
|
|
402
|
|
— %
|
Income before income
tax expense
|
166,303
|
|
—
|
|
166,303
|
|
10.5 %
|
|
141,475
|
|
—
|
|
141,475
|
|
10.0 %
|
|
|
(2)
|
Included in "Other
income (expense), net" for the twelve months ended December 31,
2023 and 2022, is expense of $2.7 million and $2.4 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 stockholders and investors.
|
CBIZ,
INC.
FINANCIAL HIGHLIGHTS
(UNAUDITED)
(In
thousands)
SELECT SEGMENT
DATA
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenue
|
|
|
|
|
|
|
|
|
Financial
Services
|
|
$ 228,298
|
|
$ 202,016
|
|
1,160,686
|
|
1,010,068
|
Benefits and Insurance
Services
|
|
86,426
|
|
81,746
|
|
382,605
|
|
358,007
|
National
Practices
|
|
12,823
|
|
11,281
|
|
47,903
|
|
43,904
|
Total
|
|
$
327,547
|
|
$
295,043
|
|
$
1,591,194
|
|
$
1,411,979
|
|
|
|
|
|
|
|
|
|
Gross
Margin
|
|
|
|
|
|
|
|
|
Financial Services
(1)
|
|
(9,210)
|
|
(8,242)
|
|
185,610
|
|
$ 160,030
|
Benefits and Insurance
Services
|
|
10,849
|
|
12,357
|
|
72,095
|
|
67,620
|
National
Practices
|
|
1,558
|
|
1,298
|
|
4,843
|
|
4,703
|
Operating expenses -
unallocated (2)
|
|
|
|
|
|
|
|
|
Other
expense
|
|
(6,155)
|
|
(7,182)
|
|
(22,152)
|
|
(26,238)
|
Deferred
compensation
|
|
(10,339)
|
|
(5,748)
|
|
(17,192)
|
|
17,252
|
Total
|
|
$
(13,297)
|
|
$
(7,517)
|
|
$
223,204
|
|
$
223,367
|
|
|
(1)
|
Gross margin for the
Financial Services practice group included approximately $0.1
million and $1.2 million of one-time and non-recurring integration
and retention costs related to Somerset for the three months and
twelve months ended December 31, 2023, respectively. Gross margin
for the Financial Services practice group included approximately
$0.8 million and $6.7 million of one-time and non-recurring
integration and retention costs related to Marks Paneth for the
three months and twelve months ended December 31, 2022,
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
(In
thousands)
|
|
|
|
Twelve Months Ended
December 31,
|
|
|
2023
|
|
2022
|
Net
income
|
|
$
120,968
|
|
$
105,354
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization expense
|
|
36,269
|
|
32,895
|
Gain on sale of
operations, net
|
|
(176)
|
|
(413)
|
Bad debt expense, net
of recoveries
|
|
1,551
|
|
1,173
|
Adjustments to
contingent earnout liability, net
|
|
2,743
|
|
2,435
|
Stock-based
compensation expense
|
|
12,286
|
|
14,689
|
Other noncash
adjustments
|
|
8,908
|
|
12,042
|
Net income, after
adjustments to reconcile net income to net cash provided by
operating activities
|
|
182,549
|
|
168,175
|
Changes in assets and
liabilities, net of acquisitions and divestitures
|
|
(29,042)
|
|
(42,043)
|
Net cash provided by
operating activities
|
|
153,507
|
|
126,132
|
Net cash used in
investing activities
|
|
(79,393)
|
|
(99,118)
|
Net cash used in
financing activities
|
|
(77,111)
|
|
(17,343)
|
Net (decrease)
increase in cash, cash equivalents and restricted
cash
|
|
(2,997)
|
|
9,671
|
Cash, cash equivalents
and restricted cash at beginning of year
|
|
$
160,145
|
|
$
150,474
|
Cash, cash
equivalents and restricted cash at end of period
|
|
$
157,148
|
|
$
160,145
|
|
|
|
|
|
Reconciliation of
cash, cash equivalents and restricted cash to the consolidated
balance sheet:
|
Cash and cash
equivalents
|
|
$
8,090
|
|
$
4,697
|
Restricted
cash
|
|
30,362
|
|
28,487
|
Cash equivalents
included in funds held for clients
|
|
118,696
|
|
126,961
|
Total cash, cash
equivalents and restricted cash
|
|
$
157,148
|
|
$
160,145
|
CBIZ,
INC.
SELECT FINANCIAL
DATA AND RATIOS
(In
thousands)
|
|
|
|
December 31,
2023
|
|
December 31,
2022
|
Cash and cash
equivalents
|
|
8,090
|
|
4,697
|
Restricted
cash
|
|
30,362
|
|
28,487
|
Accounts receivable,
net
|
|
380,152
|
|
334,498
|
Current assets before
funds held for clients
|
|
453,499
|
|
397,113
|
Funds held for
clients
|
|
159,186
|
|
171,313
|
Goodwill and other
intangible assets, net
|
|
1,008,604
|
|
951,702
|
|
|
|
|
|
Total
assets
|
|
2,043,592
|
|
1,879,124
|
|
|
|
|
|
Current liabilities
before client fund obligations
|
|
352,028
|
|
338,940
|
Client fund
obligations
|
|
159,893
|
|
173,467
|
Total long-term debt,
net
|
|
310,826
|
|
263,654
|
|
|
|
|
|
Total
liabilities
|
|
1,251,974
|
|
1,165,672
|
|
|
|
|
|
Treasury
stock
|
|
(899,093)
|
|
(824,778)
|
|
|
|
|
|
Total stockholders'
equity
|
|
791,618
|
|
713,452
|
|
|
|
|
|
Debt to
equity
|
|
39.3 %
|
|
37.0 %
|
Days sales outstanding
(DSO) (1)
|
|
78
|
|
74
|
|
|
|
|
|
Shares
outstanding
|
|
49,814
|
|
50,180
|
Basic weighted average
common shares outstanding
|
|
49,989
|
|
51,502
|
Diluted weighted
average common shares outstanding
|
|
50,557
|
|
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.
|
CBIZ,
INC.
GAAP
RECONCILIATION
Net (Loss) Income
and Diluted Earnings Per Share ("EPS") to Adjusted Net (Loss), EPS
and EBITDA(1)
(In thousands,
except per share data)
|
|
|
Three Months
Ended
December 31, 2023
|
|
Three Months
Ended
December 31,
2022
|
|
Amounts
|
|
EPS
|
|
Amounts
|
|
EPS
|
Net
loss
|
$
(12,737)
|
|
$
(0.26)
|
|
$
(11,498)
|
|
$
(0.23)
|
Adjustments:
|
|
|
|
|
|
|
|
Gain on sale of
assets, net
|
(1,363)
|
|
(0.03)
|
|
—
|
|
—
|
Integration and
retention costs related to acquisitions (2)
|
331
|
|
0.01
|
|
1,179
|
|
$
0.02
|
Facility optimization
costs (3)
|
255
|
|
0.01
|
|
—
|
|
—
|
Income tax effect
related to adjustments
|
258
|
|
0.01
|
|
(355)
|
|
—
|
Adjusted net
loss
|
$
(13,256)
|
|
$
(0.26)
|
|
$
(10,674)
|
|
$
(0.21)
|
Interest
expense
|
$
5,108
|
|
|
|
$
2,830
|
|
|
Income tax
benefit
|
(6,332)
|
|
|
|
(4,953)
|
|
|
Gain on sale of
operations, net
|
—
|
|
|
|
(102)
|
|
|
Tax effect related to
the adjustments above
|
(258)
|
|
|
|
355
|
|
|
Depreciation
|
3,301
|
|
|
|
2,853
|
|
|
Amortization
|
6,003
|
|
|
|
5,335
|
|
|
Adjusted
EBITDA
|
$
(5,434)
|
|
|
|
$
(4,356)
|
|
|
|
|
Twelve Months
Ended
December 31, 2023
|
|
Twelve Months
Ended
December 31,
2022
|
|
Amounts
|
|
EPS
|
|
Amounts
|
|
EPS
|
Net
income
|
$ 120,968
|
|
$
2.39
|
|
$ 105,354
|
|
$
2.01
|
Adjustments:
|
|
|
|
|
|
|
|
Gain on sale of
assets, net
|
(2,863)
|
|
(0.06)
|
|
(2,391)
|
|
(0.05)
|
Transaction costs
related to acquisitions (2)
|
611
|
|
0.01
|
|
1,329
|
|
0.03
|
Integration and
retention costs related to acquisitions (2)
|
2,782
|
|
0.06
|
|
9,191
|
|
0.18
|
Facility optimization
costs (3)
|
731
|
|
0.02
|
|
—
|
|
—
|
Income tax effect
related to adjustments
|
(344)
|
|
(0.01)
|
|
(2,075)
|
|
(0.04)
|
Adjusted net
income
|
$ 121,885
|
|
$
2.41
|
|
$ 111,408
|
|
$
2.13
|
Interest
expense
|
$
20,131
|
|
|
|
$
8,039
|
|
|
Income tax
expense
|
45,335
|
|
|
|
36,121
|
|
|
Gain on sale of
operations, net
|
(176)
|
|
|
|
(413)
|
|
|
Tax effect related to
the adjustments above
|
344
|
|
|
|
2,075
|
|
|
Depreciation
|
12,475
|
|
|
|
11,231
|
|
|
Amortization
|
23,794
|
|
|
|
21,664
|
|
|
Adjusted
EBITDA
|
$ 223,788
|
|
|
|
$ 190,125
|
|
|
|
|
(1)
|
CBIZ reports its
financial results in accordance with GAAP. This table reconciles
Adjusted net (loss) income, Adjusted EPS, and Adjusted EBITDA to
the most directly comparable GAAP financial measures, "Net (loss)
income" and "Diluted earnings per share." Adjusted net (loss)
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 (loss)
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 a performance measure 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 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 2024
Diluted Earnings Per Share ("EPS") Guidance to Full Year 2024
Adjusted Diluted EPS
|
|
|
Full Year 2024
Guidance
|
|
Low
|
|
High
|
Diluted EPS - GAAP
Guidance
|
$
2.70
|
|
$
2.75
|
Adjusted Diluted EPS
Guidance
|
$
2.70
|
|
$
2.75
|
|
|
|
|
GAAP Diluted EPS for
2023
|
$
2.39
|
|
$
2.39
|
Adjusted Diluted EPS
for 2023
|
$
2.41
|
|
$
2.41
|
GAAP Diluted EPS
Range
|
13 %
|
|
15 %
|
Adjusted Diluted EPS
Range
|
12 %
|
|
14 %
|
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SOURCE CBIZ, Inc.