THIRD-QUARTER HIGHLIGHTS:
- TOTAL REVENUE UP 13.0%; SAME-UNIT REVENUE UP 8.3%
- GAAP EPS UP 26.4%; ADJUSTED EPS UP 29.4%
- NET INCOME UP 22.6%; ADJUSTED EBITDA UP 34.2%
NINE-MONTH HIGHLIGHTS:
- TOTAL REVENUE UP 13.1%; SAME-UNIT REVENUE UP 7.5%
- GAAP EPS UP 18.9%; ADJUSTED EPS UP 15.6%
- NET INCOME UP 14.4%; ADJUSTED EBITDA UP 17.9%
CLEVELAND, Oct. 26,
2023 /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
ended September 30, 2023.
For the 2023 third quarter, CBIZ recorded revenue of
$410.5 million, an increase of
$47.3 million, or 13.0%, compared
with $363.3 million reported for
the same period in 2022. Acquired operations, net of divestitures,
contributed $17.1 million, or 4.7%,
to third-quarter 2023 revenue growth. Same-unit revenue increased
by $30.2 million, or 8.3%, for the
quarter, compared with the same period a year ago. Net income was
$33.7 million, or $0.67 per diluted share, compared with
$27.5 million, or $0.53 per diluted share, for the same period a
year ago.
For the nine months ended September 30, 2023, CBIZ recorded
revenue of $1,263.6 million, an
increase of $146.7 million, or 13.1%,
over the $1,116.9
million recorded for the same period in 2022. Acquisitions,
net of divestitures, contributed $62.6
million, or 5.6%, to revenue growth in the nine months ended
September 30, 2023. Same-unit revenue increased by
$84.1 million, or 7.5%, compared with
the same period a year ago. Net income was $133.7 million, or $2.64 per diluted share, for the nine months
ended September 30, 2023, compared with $116.9 million, or $2.22 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 $33.3 million in the third
quarter of 2023 compared with Adjusted net income of $26.6 million for the same period a year ago.
Adjusted earnings per share was $0.66, an increase of 29.4% compared with
Adjusted earnings per share of $0.51
for the same period a year ago. Adjusted EBITDA for the third
quarter was $61.6 million, up 34.2%
compared with $45.9 million for the
same period in 2022.
Adjusted net income was $135.2
million, or $2.67 per diluted
share, for the nine months ended September 30, 2023, compared
with $122.0 million, or $2.31 per diluted share, for the same period a
year ago. Adjusted EBITDA for the nine months was $229.2 million, up 17.9% compared with
$194.5 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 nine months ended September 30, 2023, the
Company repurchased approximately 1.2 million shares of its common
stock on the open market. The balance outstanding on the Company's
unsecured credit facility on September 30, 2023, was
$394.7 million with $195.0 million of unused borrowing capacity.
Jerry Grisko, CBIZ President and
Chief Executive Officer, said, "We are pleased to report a strong
third quarter with both of our major divisions posting solid
results. Overall, our results were as expected for the quarter, and
we continue to experience strong demand for our essential,
recurring services as well as our more project-based services.
Based on our year-to-date performance and current outlook for the
remainder of the year, we are pleased to affirm our revenue and EPS
guidance for the full year."
"We continue to make steady progress with the integration of our
latest acquisitions including three strategic deals and two tuck-in
transactions completed earlier this year. Our M&A pipeline
remains active, and we continue to pursue additional opportunities
to add businesses that enable us to deliver on our promise to
provide our clients with a breadth of services and depth of
expertise unmatched in our industry."
2023 Outlook
- The Company expects revenue to grow within a range of 10% to
12% over the prior year.
- 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/10182964/fa8d77e7d8.
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
SEPTEMBER 30, 2023 AND 2022
(In thousands,
except percentages and per share data)
|
|
|
|
Three Months Ended
September 30,
|
|
|
2023
|
|
%
|
|
2022
|
|
%
|
Revenue
|
|
$
410,539
|
|
100.0 %
|
|
$
363,262
|
|
100.0 %
|
Operating expenses
(1)
|
|
342,148
|
|
83.3
|
|
306,017
|
|
84.2
|
Gross
margin
|
|
68,391
|
|
16.7
|
|
57,245
|
|
15.8
|
Corporate general and
administrative expenses (1)
|
|
13,136
|
|
3.2
|
|
15,893
|
|
4.4
|
Operating
income
|
|
55,255
|
|
13.5
|
|
41,352
|
|
11.4
|
Other (expense)
income:
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(5,848)
|
|
(1.4)
|
|
(2,305)
|
|
(0.6)
|
Gain on sale of
operations, net
|
|
77
|
|
—
|
|
176
|
|
—
|
Other expense, net
(1) (2)
|
|
(2,288)
|
|
(0.6)
|
|
(2,622)
|
|
(0.7)
|
Total other expense,
net
|
|
(8,059)
|
|
(2.0)
|
|
(4,751)
|
|
(1.3)
|
Income before income
tax expense
|
|
47,196
|
|
11.5
|
|
36,601
|
|
10.1
|
Income tax
expense
|
|
13,514
|
|
|
|
9,131
|
|
|
Net
income
|
|
$
33,682
|
|
8.2 %
|
|
$
27,470
|
|
7.6 %
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
0.67
|
|
|
|
$
0.53
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average common shares outstanding
|
|
50,371
|
|
|
|
52,238
|
|
|
Other
data:
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(3)
|
|
$
61,564
|
|
|
|
$
45,861
|
|
|
Adjusted EPS
(3)
|
|
$ 0.66
|
|
|
|
$ 0.51
|
|
|
|
|
(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 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, 2023, and 2022, are as follows (in
thousands):
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
|
2023
|
|
% of
Revenue
|
|
2022
|
|
% of
Revenue
|
|
|
Operating
income
|
|
$ (3,009)
|
|
(0.7) %
|
|
$ (3,995)
|
|
(1.1) %
|
|
|
Corporate general and
administrative income
|
|
(452)
|
|
(0.1) %
|
|
(697)
|
|
(0.2) %
|
|
|
Other expense,
net
|
|
(3,461)
|
|
(0.8) %
|
|
(4,692)
|
|
(1.3) %
|
|
|
|
|
|
Excluding the impact of
the above-mentioned income and expenses related to the deferred
compensation plan, the operating results for the three months ended
September 30, 2023, and 2022, are as follows (in
thousands):
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
2023
|
|
2022
|
|
|
|
As
Reported
|
|
Deferred
Compensation
Plan
|
|
Adjusted
|
|
% of
Revenue
|
|
As
Reported
|
|
Deferred
Compensation
Plan
|
|
Adjusted
|
|
% of
Revenue
|
|
|
Gross margin
|
$
68,391
|
|
$ (3,009)
|
|
$
65,382
|
|
15.9 %
|
|
$
57,245
|
|
$ (3,995)
|
|
$
53,250
|
|
14.7 %
|
|
|
Operating
income
|
55,255
|
|
(3,461)
|
|
51,794
|
|
12.6 %
|
|
41,352
|
|
(4,692)
|
|
36,660
|
|
10.1 %
|
|
|
Other (expense) income,
net
|
(2,288)
|
|
3,461
|
|
1,173
|
|
0.3 %
|
|
(2,622)
|
|
4,692
|
|
2,070
|
|
0.6 %
|
|
|
Income before income
tax expense
|
47,196
|
|
—
|
|
47,196
|
|
11.5 %
|
|
36,601
|
|
—
|
|
36,601
|
|
10.1 %
|
|
|
(2)
|
Included in "Other
expense, net" for the three months ended September 30, 2023, and
2022, is expense of $0.6 million and $0.4 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 shareholders and investors.
|
CBIZ,
INC.
FINANCIAL HIGHLIGHTS
(UNAUDITED)
NINE MONTHS ENDED
SEPTEMBER 30, 2023 AND 2022
(In thousands,
except percentages and per share data)
|
|
|
|
Nine Months Ended
September 30,
|
|
|
2023
|
|
%
|
|
2022
|
|
%
|
Revenue
|
|
$
1,263,647
|
|
100.0 %
|
|
$
1,116,936
|
|
100.0 %
|
Operating expenses
(1)
|
|
1,027,146
|
|
81.3
|
|
886,052
|
|
79.3
|
Gross
margin
|
|
236,501
|
|
18.7
|
|
230,884
|
|
20.7
|
Corporate general and
administrative expenses (1)
|
|
44,527
|
|
3.5
|
|
43,128
|
|
3.9
|
Operating
income
|
|
191,974
|
|
15.2
|
|
187,756
|
|
16.8
|
Other (expense)
income:
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(15,023)
|
|
(1.2)
|
|
(5,209)
|
|
(0.5)
|
Gain on sale of
operations, net
|
|
176
|
|
—
|
|
311
|
|
—
|
Other income
(expense), net (1) (2)
|
|
8,245
|
|
0.7
|
|
(24,932)
|
|
(2.2)
|
Total other expense,
net
|
|
(6,602)
|
|
(0.5)
|
|
(29,830)
|
|
(2.7)
|
Income before income
tax expense
|
|
185,372
|
|
14.7
|
|
157,926
|
|
14.1
|
Income tax
expense
|
|
51,667
|
|
|
|
41,074
|
|
|
Net
income
|
|
133,705
|
|
10.6 %
|
|
116,852
|
|
10.5 %
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
2.64
|
|
|
|
$
2.22
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average common shares outstanding
|
|
50,644
|
|
|
|
52,720
|
|
|
Other
data:
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(3)
|
|
$
229,222
|
|
|
|
$
194,481
|
|
|
Adjusted EPS
(3)
|
|
$
2.67
|
|
|
|
$2.31
|
|
|
|
|
(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 nine months ended
September 30, 2023, and 2022, are as follows (in
thousands):
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
|
2023
|
|
% of
Revenue
|
|
2022
|
|
% of
Revenue
|
|
|
Operating
expenses (income)
|
|
$
6,853
|
|
0.5 %
|
|
$
(23,000)
|
|
(2.1) %
|
|
|
Corporate general and
administrative expenses (income)
|
|
821
|
|
0.1 %
|
|
(3,319)
|
|
(0.3) %
|
|
|
Other income (expense),
net
|
|
7,674
|
|
0.6 %
|
|
(26,319)
|
|
(2.4) %
|
|
|
|
|
|
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, 2023, and 2022, are as follows (in
thousands):
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
2023
|
|
2022
|
|
|
|
As
Reported
|
|
Deferred
Compensation
Plan
|
|
Adjusted
|
|
% of
Revenue
|
|
As
Reported
|
|
Deferred
Compensation
Plan
|
|
Adjusted
|
|
% of
Revenue
|
|
|
Gross margin
|
$ 236,501
|
|
$
6,853
|
|
$ 243,354
|
|
19.3 %
|
|
$ 230,884
|
|
$
(23,000)
|
|
$ 207,884
|
|
18.6 %
|
|
|
Operating
income
|
191,974
|
|
7,674
|
|
199,648
|
|
15.8 %
|
|
187,756
|
|
(26,319)
|
|
161,437
|
|
14.5 %
|
|
|
Other income (expense),
net
|
8,245
|
|
(7,674)
|
|
571
|
|
— %
|
|
(24,932)
|
|
26,319
|
|
1,387
|
|
0.1 %
|
|
|
Income before income
tax expense
|
185,372
|
|
—
|
|
185,372
|
|
14.7 %
|
|
157,926
|
|
—
|
|
157,926
|
|
14.1 %
|
|
|
(2)
|
Included in "Other
income (expense), net" for the nine months ended September 30,
2023, and 2022, is expense of $2.1 million and $1.9 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)
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenue
|
|
|
|
|
|
|
|
|
Financial
Services
|
|
$ 298,372
|
|
$ 259,998
|
|
$ 932,388
|
|
$ 808,052
|
Benefits and Insurance
Services
|
|
100,287
|
|
92,067
|
|
296,179
|
|
276,261
|
National
Practices
|
|
11,880
|
|
11,197
|
|
35,080
|
|
32,623
|
Total
|
|
$
410,539
|
|
$
363,262
|
|
$
1,263,647
|
|
$
1,116,936
|
|
|
|
|
|
|
|
|
|
Gross
Margin
|
|
|
|
|
|
|
|
|
Financial
Services
|
|
$
48,692
|
|
$
39,661
|
|
$ 194,820
|
|
$ 168,272
|
Benefits and Insurance
Services
|
|
20,651
|
|
18,746
|
|
61,246
|
|
55,263
|
National
Practices
|
|
1,213
|
|
1,454
|
|
3,285
|
|
3,405
|
Operating expenses -
unallocated (1):
|
|
|
|
|
|
|
|
|
Other
expense
|
|
(5,174)
|
|
(6,611)
|
|
(15,997)
|
|
(19,056)
|
Deferred
compensation
|
|
3,009
|
|
3,995
|
|
(6,853)
|
|
23,000
|
Total
|
|
$
68,391
|
|
$
57,245
|
|
$
236,501
|
|
$
230,884
|
SELECT SEGMENT
DATA
|
|
(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)
|
|
|
|
Nine Months Ended
September 30,
|
|
|
2023
|
|
2022
|
Net
income
|
|
$
133,705
|
|
$
116,852
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization expense
|
|
26,965
|
|
24,707
|
Gain on sale of
operations, net
|
|
(176)
|
|
(311)
|
Bad debt expense, net
of recoveries
|
|
1,011
|
|
1,295
|
Adjustments to
contingent earnout liability, net
|
|
2,071
|
|
1,917
|
Stock-based
compensation expense
|
|
9,721
|
|
11,987
|
Other noncash
adjustments
|
|
5,533
|
|
3,594
|
Net income, after
adjustments to reconcile net income to net cash provided by
operating activities
|
|
178,830
|
|
160,041
|
Changes in assets and
liabilities, net of acquisitions and divestitures
|
|
(121,576)
|
|
(99,982)
|
Net cash provided by
operating activities
|
|
57,254
|
|
60,059
|
Net cash used in
investing activities
|
|
(76,630)
|
|
(95,550)
|
Net cash (used in)
provided by financing activities
|
|
(18,442)
|
|
6,025
|
Net decrease in
cash, cash equivalents and restricted cash
|
|
(37,818)
|
|
(29,466)
|
Cash, cash equivalents
and restricted cash at beginning of year
|
|
$
160,145
|
|
$
150,474
|
Cash, cash
equivalents and restricted cash at end of period
|
|
$
122,327
|
|
$
121,008
|
|
|
|
|
|
Reconciliation of
cash, cash equivalents and restricted cash to the consolidated
balance sheet:
|
Cash and cash
equivalents
|
|
$
1,415
|
|
$
2,040
|
Restricted
cash
|
|
38,229
|
|
39,555
|
Cash equivalents
included in funds held for clients
|
|
82,683
|
|
79,413
|
Total cash, cash
equivalents and restricted cash
|
|
$
122,327
|
|
$
121,008
|
CBIZ,
INC.
SELECT FINANCIAL
DATA AND RATIOS (UNAUDITED)
(In
thousands)
|
|
|
|
September 30,
2023
|
|
December 31,
2022
|
Cash and cash
equivalents
|
|
1,415
|
|
4,697
|
Restricted
cash
|
|
38,229
|
|
28,487
|
Accounts receivable,
net
|
|
465,848
|
|
334,498
|
Current assets before
funds held for clients
|
|
543,371
|
|
397,113
|
Funds held for
clients
|
|
122,531
|
|
171,313
|
Goodwill and other
intangible assets, net
|
|
1,014,607
|
|
951,702
|
|
|
|
|
|
Total
assets
|
|
2,074,494
|
|
1,879,124
|
|
|
|
|
|
Current liabilities
before client fund obligations
|
|
350,536
|
|
338,940
|
Client fund
obligations
|
|
123,910
|
|
173,467
|
Total long-term debt,
net
|
|
393,008
|
|
263,654
|
|
|
|
|
|
Total
liabilities
|
|
1,263,900
|
|
1,165,672
|
|
|
|
|
|
Treasury
stock
|
|
(891,880)
|
|
(824,778)
|
|
|
|
|
|
Total stockholders'
equity
|
|
810,594
|
|
713,452
|
|
|
|
|
|
Debt to
equity
|
|
48.5 %
|
|
37.0 %
|
Days sales outstanding
(DSO) (1)
|
|
96
|
|
74
|
|
|
|
|
|
Shares
outstanding
|
|
49,917
|
|
50,180
|
Basic weighted average
common shares outstanding
|
|
50,054
|
|
51,502
|
Diluted weighted
average common shares outstanding
|
|
50,644
|
|
52,388
|
|
|
(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, 2022, was 93.
|
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
September 30,
2023
|
|
Three Months
Ended
September 30,
2022
|
|
Amounts
|
|
EPS
|
|
Amounts
|
|
EPS
|
Net
income
|
$
33,682
|
|
$
0.67
|
|
$
27,470
|
|
$
0.53
|
Adjustments:
|
|
|
|
|
|
|
|
Gain on sale of
assets, net
|
(1,375)
|
|
(0.03)
|
|
(2,391)
|
|
(0.05)
|
Integration &
retention costs related to acquisitions (2)
|
583
|
|
0.01
|
|
1,280
|
|
0.02
|
Facility optimization
costs (3)
|
255
|
|
0.01
|
|
—
|
|
—
|
Income tax effect
related to adjustments
|
154
|
|
—
|
|
277
|
|
0.01
|
Adjusted net
income
|
$
33,299
|
|
$
0.66
|
|
$
26,636
|
|
$
0.51
|
Interest
expense
|
$
5,848
|
|
|
|
$
2,305
|
|
|
Income tax
expense
|
13,514
|
|
|
|
9,131
|
|
|
Gain on sale of
operations, net
|
(77)
|
|
|
|
(176)
|
|
|
Tax effect related to
the adjustments above
|
(154)
|
|
|
|
(277)
|
|
|
Depreciation
|
3,083
|
|
|
|
2,771
|
|
|
Amortization
|
6,051
|
|
|
|
5,471
|
|
|
Adjusted
EBITDA
|
$
61,564
|
|
|
|
$
45,861
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
September 30,
2023
|
|
Nine Months
Ended
September 30,
2022
|
|
Amounts
|
|
EPS
|
|
Amounts
|
|
EPS
|
Net
income
|
$
133,705
|
|
$
2.64
|
|
$
116,852
|
|
$
2.22
|
Adjustments:
|
|
|
|
|
|
|
|
Gain on sale of
assets, net
|
(1,500)
|
|
(0.03)
|
|
(2,391)
|
|
(0.05)
|
Transaction costs
related to acquisitions (2)
|
611
|
|
0.01
|
|
1,329
|
|
0.02
|
Integration &
retention costs related to acquisitions (2)
|
2,451
|
|
0.05
|
|
8,012
|
|
0.15
|
Facility optimization
costs (3)
|
476
|
|
0.01
|
|
—
|
|
—
|
Income tax effect
related to adjustments
|
(568)
|
|
(0.01)
|
|
(1,808)
|
|
(0.03)
|
Adjusted net
income
|
$
135,175
|
|
$
2.67
|
|
$
121,994
|
|
$
2.31
|
Interest
expense
|
$ 15,023
|
|
|
|
$
5,209
|
|
|
Income tax
expense
|
51,667
|
|
|
|
41,074
|
|
|
Gain on sale of
operations, net
|
(176)
|
|
|
|
(311)
|
|
|
Tax effect related to
the adjustments above
|
568
|
|
|
|
1,808
|
|
|
Depreciation
|
9,174
|
|
|
|
8,378
|
|
|
Amortization
|
17,791
|
|
|
|
16,329
|
|
|
Adjusted
EBITDA
|
$
229,222
|
|
|
|
$
194,481
|
|
|
|
|
(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
Diluted Earnings Per Share ("EPS") to Full Year 2023 Adjusted
Diluted EPS
|
|
|
Full Year 2023
Guidance
|
|
Low
|
|
High
|
|
|
Per
Share
|
|
|
Per
Share
|
Diluted EPS - GAAP
Guidance
|
|
$
2.31
|
|
|
$
2.36
|
Transaction and
integration costs related to Somerset (1)
|
|
0.07
|
|
|
0.07
|
Income tax effect
related to adjustments
|
|
(0.02)
|
|
|
(0.02)
|
Adjusted Diluted EPS
Guidance
|
|
$
2.36
|
|
|
$
2.41
|
|
|
|
|
|
|
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 %
|
|
|
(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 to download
multimedia:https://www.prnewswire.com/news-releases/cbiz-reports-third-quarter-and-nine-month-2023-results-301967901.html
SOURCE CBIZ, Inc.