CBIZ REPORTS FOURTH-QUARTER AND FULL-YEAR 2024 RESULTS
CBIZ (NYSE: CBZ) reported strong growth in Q4 and full-year 2024, highlighted by the completion of its largest-ever acquisition, Marcum LLP, on November 1, 2024. Q4 revenue surged 40.5% to $460.3 million, with same-unit revenue up 6.4%. The Marcum transaction contributed 33.2% to the quarterly growth.
Full-year 2024 revenue reached $1,813.5 million, a 14% increase from 2023's $1,591.2 million. While GAAP EPS was $0.78, adjusted EPS (excluding Marcum transaction impact and integration costs) grew 10.8% to $2.67.
2025 Guidance: CBIZ projects revenue between $2.90-2.95 billion, GAAP EPS of $1.97-2.02, adjusted EPS of $3.60-3.65, and adjusted EBITDA of $450-456 million.
CBIZ (NYSE: CBZ) ha riportato una forte crescita nel quarto trimestre e nell'intero anno 2024, evidenziata dal completamento della sua acquisizione più grande di sempre, Marcum LLP, il 1 novembre 2024. Le entrate del quarto trimestre sono aumentate del 40,5% a 460,3 milioni di dollari, con un incremento del 6,4% delle entrate a unità costante. La transazione Marcum ha contribuito per il 33,2% alla crescita trimestrale.
Le entrate per l'intero anno 2024 hanno raggiunto 1.813,5 milioni di dollari, con un aumento del 14% rispetto ai 1.591,2 milioni di dollari del 2023. Sebbene l'EPS GAAP fosse di 0,78 dollari, l'EPS rettificato (escludendo l'impatto della transazione Marcum e i costi di integrazione) è cresciuto del 10,8% a 2,67 dollari.
Previsioni per il 2025: CBIZ prevede entrate tra 2,90 e 2,95 miliardi di dollari, un EPS GAAP di 1,97-2,02 dollari, un EPS rettificato di 3,60-3,65 dollari e un EBITDA rettificato di 450-456 milioni di dollari.
CBIZ (NYSE: CBZ) reportó un fuerte crecimiento en el cuarto trimestre y en todo el año 2024, destacado por la finalización de su adquisición más grande hasta la fecha, Marcum LLP, el 1 de noviembre de 2024. Los ingresos del cuarto trimestre aumentaron un 40,5% a 460,3 millones de dólares, con un aumento del 6,4% en los ingresos de unidades constantes. La transacción de Marcum contribuyó con un 33,2% al crecimiento trimestral.
Los ingresos del año completo 2024 alcanzaron los 1.813,5 millones de dólares, un incremento del 14% respecto a los 1.591,2 millones de dólares de 2023. Mientras que el EPS GAAP fue de 0,78 dólares, el EPS ajustado (excluyendo el impacto de la transacción de Marcum y los costos de integración) creció un 10,8% a 2,67 dólares.
Guía para 2025: CBIZ proyecta ingresos entre 2,90 y 2,95 mil millones de dólares, un EPS GAAP de 1,97-2,02 dólares, un EPS ajustado de 3,60-3,65 dólares y un EBITDA ajustado de 450-456 millones de dólares.
CBIZ (NYSE: CBZ)는 2024년 4분기 및 연간 강력한 성장을 보고했으며, 이는 2024년 11월 1일에 이루어진 최대 인수인 Marcum LLP의 완료로 강조됩니다. 4분기 수익은 40.5% 증가하여 4억 6천 3백만 달러에 달하며, 동일 단위 수익은 6.4% 증가했습니다. Marcum 거래는 분기 성장에 33.2% 기여했습니다.
2024년 전체 수익은 18억 1,350만 달러에 도달하여, 2023년의 15억 9,120만 달러에서 14% 증가했습니다. GAAP EPS는 0.78달러였고, 조정된 EPS(마르컴 거래 영향 및 통합 비용 제외)는 10.8% 증가하여 2.67달러에 달했습니다.
2025년 가이던스: CBIZ는 수익을 29억에서 29억 5천만 달러 사이로 예상하며, GAAP EPS는 1.97-2.02달러, 조정된 EPS는 3.60-3.65달러, 조정된 EBITDA는 4억 5천만에서 4억 5천 6백만 달러로 예상합니다.
CBIZ (NYSE: CBZ) a rapporté une forte croissance au quatrième trimestre et pour l'année entière 2024, mise en évidence par l'achèvement de sa plus grande acquisition à ce jour, Marcum LLP, le 1er novembre 2024. Les revenus du quatrième trimestre ont augmenté de 40,5% pour atteindre 460,3 millions de dollars, avec une augmentation de 6,4% des revenus à unités constantes. La transaction Marcum a contribué à hauteur de 33,2% à la croissance trimestrielle.
Les revenus pour l'année complète 2024 ont atteint 1.813,5 millions de dollars, soit une augmentation de 14% par rapport aux 1.591,2 millions de dollars de 2023. Bien que le BPA GAAP ait été de 0,78 dollar, le BPA ajusté (hors impact de la transaction Marcum et des coûts d'intégration) a augmenté de 10,8% pour atteindre 2,67 dollars.
Prévisions pour 2025 : CBIZ prévoit des revenus compris entre 2,90 et 2,95 milliards de dollars, un BPA GAAP de 1,97 à 2,02 dollars, un BPA ajusté de 3,60 à 3,65 dollars et un EBITDA ajusté de 450 à 456 millions de dollars.
CBIZ (NYSE: CBZ) berichtete über ein starkes Wachstum im 4. Quartal und im gesamten Jahr 2024, unterstrichen durch den Abschluss seiner bislang größten Übernahme, Marcum LLP, am 1. November 2024. Die Einnahmen im 4. Quartal stiegen um 40,5% auf 460,3 Millionen Dollar, während die Einnahmen in konstanten Einheiten um 6,4% zunahmen. Die Marcum-Transaktion trug mit 33,2% zum Quartalswachstum bei.
Die Einnahmen für das gesamte Jahr 2024 beliefen sich auf 1.813,5 Millionen Dollar, was einem Anstieg von 14% im Vergleich zu 1.591,2 Millionen Dollar im Jahr 2023 entspricht. Während das GAAP EPS bei 0,78 Dollar lag, wuchs das bereinigte EPS (ohne Auswirkungen der Marcum-Transaktion und Integrationskosten) um 10,8% auf 2,67 Dollar.
Prognose für 2025: CBIZ erwartet Einnahmen zwischen 2,90 und 2,95 Milliarden Dollar, ein GAAP EPS von 1,97-2,02 Dollar, ein bereinigtes EPS von 3,60-3,65 Dollar und ein bereinigtes EBITDA von 450-456 Millionen Dollar.
- Q4 revenue increased 40.5% to $460.3M
- Same-unit revenue growth of 6.4% in Q4
- Full-year revenue up 14% to $1.81B
- Adjusted EPS grew 10.8% to $2.67
- Strategic expansion through Marcum acquisition
- Strong 2025 guidance with projected revenue of $2.90-2.95B
- GAAP EPS declined to $0.78
- High debt level of $1.42B post-Marcum acquisition
- Integration costs impacting current financial results
Insights
CBIZ's Q4 and full-year 2024 results reveal the transformative impact of its Marcum acquisition, which has fundamentally reshaped the company's scale and market position. The
The company's Q4 revenue surge of
The substantial gap between GAAP EPS (
CBIZ's 2025 guidance projects substantial growth, with revenue expected to increase by approximately
The acquisition timing in November strategically positioned CBIZ heading into the 2025 tax season, but has amplified the traditional Q1-heavy seasonal pattern in professional services firms. With tax and accounting services now representing a larger portion of overall revenue, investors should expect more pronounced quarterly earnings volatility going forward.
This transaction solidifies CBIZ's position as the dominant middle-market professional services provider, creating significant cross-selling opportunities between Marcum's client base and CBIZ's broader service portfolio. The integration execution over the next 12-18 months will be critical to realizing the projected financial benefits and justifying the substantial debt undertaken.
FOURTH-QUARTER HIGHLIGHTS:
- MARCUM ACQUISITION CLOSED NOVEMBER 1, 2024
- FOURTH-QUARTER REVENUE UP
40.5% ; SAME-UNIT REVENUE UP6.4% - 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 UP4.8% - GAAP EPS
$0.78 $2.67 10.8%
2025 OUTLOOK:
- TOTAL REVENUE WITHIN A RANGE OF
$2.90 BILLION $2.95 BILLION - GAAP EPS WITHIN A RANGE OF
$1.97 $2.02 - ADJUSTED EPS WITHIN A RANGE OF
$3.60 $3.65 - ADJUSTED EBITDA WITHIN A RANGE OF
$450 MILLION $456 MILLION
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
For the full year ended December 31, 2024, CBIZ recorded revenue of
GAAP earnings per share for the full year was
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
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
2025 Outlook
- Total revenue within a range of
$2.90 billion $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 $2.02 - Adjusted fully diluted earnings per share within a range of
$3.60 $3.65 - Adjusted EBITDA within a range of
$450 million $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
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 % | 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) % | (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 | NQDCP | Adjusted | % of | As | NQDCP | Adjusted | % of | ||||||||
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 |
(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 | 100.0 % | 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 | NQDCP | Adjusted | % of | As | NQDCP | Adjusted | % of | ||||||||
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 |
(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 |
(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 | 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 | 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 |
(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 ( " |
(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.
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