CBIZ REPORTS THIRD-QUARTER AND NINE-MONTH 2024 RESULTS
CBIZ reported strong Q3 2024 results with total revenue reaching $438.9 million, up 6.9% year-over-year. Same-unit revenue increased by 5.1%, while acquired operations contributed 1.8% to growth. Net income rose 4.2% to $35.1 million. For the nine-month period, revenue grew 7.1% to $1.35 billion, though net income decreased slightly by 1.5%. The company is nearing completion of its Marcum acquisition, which incurred $14.8 million in transaction fees in Q3. Adjusted EPS increased significantly by 27.3% to $0.84 in Q3, and Adjusted EBITDA grew 23% to $75.7 million. CBIZ maintains its 2024 guidance, expecting 7-9% revenue growth.
CBIZ ha riportato risultati positivi per il terzo trimestre del 2024, con ricavi totali che hanno raggiunto 438,9 milioni di dollari, in aumento del 6,9% rispetto all'anno precedente. I ricavi provenienti dalle stesse unità sono aumentati del 5,1%, mentre le operazioni acquisite hanno contribuito con l'1,8% alla crescita. L'utile netto è salito del 4,2% a 35,1 milioni di dollari. Nel periodo di nove mesi, i ricavi sono cresciuti del 7,1% a 1,35 miliardi di dollari, sebbene l'utile netto sia leggermente diminuito dell'1,5%. L'azienda è in fase di completamento dell'acquisizione di Marcum, che ha comportato commissioni di transazione pari a 14,8 milioni di dollari nel terzo trimestre. L'utile per azione rettificato è aumentato significativamente del 27,3% a 0,84 dollari nel terzo trimestre, e l'EBITDA rettificato è cresciuto del 23% a 75,7 milioni di dollari. CBIZ mantiene le previsioni per il 2024, prevedendo una crescita dei ricavi del 7-9%.
CBIZ reportó resultados sólidos para el tercer trimestre de 2024, con ingresos totales alcanzando 438,9 millones de dólares, un aumento del 6,9% interanual. Los ingresos de unidades comparables aumentaron un 5,1%, mientras que las operaciones adquiridas contribuyeron con un 1,8% al crecimiento. El ingreso neto subió un 4,2% a 35,1 millones de dólares. Durante el periodo de nueve meses, los ingresos crecieron un 7,1% a 1,35 mil millones de dólares, aunque el ingreso neto disminuyó ligeramente en un 1,5%. La empresa está cerca de completar la adquisición de Marcum, que incurrió en 14,8 millones de dólares en comisiones de transacción en el tercer trimestre. El EPS ajustado aumentó significativamente un 27,3% a 0,84 dólares en el tercer trimestre, y el EBITDA ajustado creció un 23% a 75,7 millones de dólares. CBIZ mantiene su guía para 2024, esperando un crecimiento de ingresos del 7-9%.
CBIZ는 2024년 3분기 실적을 발표했으며, 총 수익은 4억 3,890만 달러에 달하며, 전년 대비 6.9% 증가했습니다. 동일 매출은 5.1% 증가하였고, 인수된 사업부는 성장에 1.8% 기여했습니다. 순이익은 4.2% 증가하여 3,510만 달러에 이르렀습니다. 9개월 동안의 수익은 13억 5천만 달러로 7.1% 증가했지만, 순이익은 소폭 1.5% 감소했습니다. 회사는 1,480만 달러의 거래 수수료를 발생시킨 Marcum 인수의 완공에 가까워지고 있습니다. 조정된 EPS는 3분기에 27.3% 증가하여 0.84달러에 이르렀고, 조정된 EBITDA는 23% 증가하여 7,570만 달러에 도달했습니다. CBIZ는 2024년 지침을 유지하며, 7-9%의 수익 성장을 기대하고 있습니다.
CBIZ a annoncé des résultats solides pour le troisième trimestre 2024, avec un chiffre d'affaires total atteignant 438,9 millions de dollars, en hausse de 6,9% par rapport à l'année précédente. Le chiffre d'affaires des unités comparables a augmenté de 5,1%, tandis que les opérations acquises ont contribué à hauteur de 1,8% à la croissance. Le bénéfice net a augmenté de 4,2% pour atteindre 35,1 millions de dollars. Pour la période de neuf mois, le chiffre d'affaires a augmenté de 7,1% pour atteindre 1,35 milliard de dollars, bien que le bénéfice net ait légèrement diminué de 1,5%. L'entreprise est sur le point de finaliser l'acquisition de Marcum, qui a engendré 14,8 millions de dollars de frais de transaction au troisième trimestre. Le BPA ajusté a fortement augmenté de 27,3% pour atteindre 0,84 dollar au troisième trimestre, et l'EBITDA ajusté a crû de 23% pour atteindre 75,7 millions de dollars. CBIZ maintient ses prévisions pour 2024, s'attendant à une croissance du chiffre d'affaires de 7 à 9%.
CBIZ berichtete über starke Ergebnisse im dritten Quartal 2024, wobei der Gesamtumsatz 438,9 Millionen Dollar erreichte und im Vergleich zum Vorjahr um 6,9% stieg. Der Umsatz aus dem gleichen Geschäftsfeld stieg um 5,1%, während akquirierte Betriebe 1,8% zum Wachstum beitrugen. Der Nettogewinn stieg um 4,2% auf 35,1 Millionen Dollar. Im Neunmonatszeitraum wuchs der Umsatz um 7,1% auf 1,35 Milliarden Dollar, obwohl der Nettogewinn leicht um 1,5% zurückging. Das Unternehmen steht kurz vor dem Abschluss der Akquisition von Marcum, die im dritten Quartal 14,8 Millionen Dollar an Transaktionsgebühren verursachte. Der bereinigte Gewinn pro Aktie stieg im dritten Quartal signifikant um 27,3% auf 0,84 Dollar, und das bereinigte EBITDA wuchs um 23% auf 75,7 Millionen Dollar. CBIZ hält an seinen Prognosen für 2024 fest und erwartet ein Umsatzwachstum von 7-9%.
- Q3 revenue increased 6.9% to $438.9 million
- Q3 same-unit revenue growth of 5.1%
- Q3 net income increased 4.2% to $35.1 million
- Q3 Adjusted EPS up 27.3% to $0.84
- Q3 Adjusted EBITDA increased 23% to $75.7 million
- Strategic acquisition of Marcum nearing completion
- Nine-month net income decreased 1.5% to $131.8 million
- Nine-month GAAP EPS declined 0.8% to $2.62
- Incurred $14.8 million in Marcum transaction fees impacting Q3 earnings
- Credit facility balance of $337.3 million
Insights
CBIZ delivered a strong Q3 2024 with notable growth metrics.
The pending Marcum acquisition is transformative, positioning CBIZ to become the largest middle-market professional services provider with projected combined revenues of
Strong balance sheet position with
THIRD-QUARTER HIGHLIGHTS:
- TOTAL REVENUE OF
$438.9 MILLION 6.9% ; SAME-UNIT REVENUE UP5.1% - NET INCOME UP
4.2% ; ADJUSTED EBITDA UP23.0% - GAAP EPS UP
4.5% ; ADJUSTED EPS UP27.3%
NINE-MONTH HIGHLIGHTS:
- TOTAL REVENUE OF
$1.4 BILLION 7.1% ; SAME-UNIT REVENUE UP4.6% - NET INCOME DOWN
1.5% ; ADJUSTED EBITDA UP7.0% - GAAP EPS DOWN
0.8% ; ADJUSTED EPS UP7.5%
For the 2024 third quarter, CBIZ recorded revenue of
For the nine months ended September 30, 2024, CBIZ recorded revenue of
On July 31, 2024, CBIZ announced it entered into a definitive agreement to acquire Marcum LLP ("Marcum"), a national accounting and advisory firm, and with essentially all closing conditions met, the transaction is expected to close in the coming days. During the 2024 third quarter, CBIZ incurred approximately
Excluding nonrecurring acquisition-related integration expenses, transaction costs incurred related to the Marcum transaction, and gain from the sale of a national practice, Adjusted net income was
For the nine months ended September 30, 2024, Adjusted net income was
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.
The balance outstanding on the Company's unsecured credit facility on September 30, 2024, was
Jerry Grisko, CBIZ President and Chief Executive Officer, said, "Adjusted earnings per share were up by over
Grisko continued, "With the Marcum transaction nearing closing, we are excited for the opportunities it presents to our collective team members, clients, and for the CBIZ shareholders. With combined annual revenues of approximately
2024 Outlook
With an expected close in the fourth quarter of 2024, current guidance excludes the impact of the Marcum acquisition. Based on expectations for the remainder of the year, the Company expects the following:
- Total revenue to grow within a range of
7% to9% over the prior year. - Effective tax rate of approximately
28% . - Weighted average fully diluted share count of approximately 50.0 to 50.5 million shares.
- GAAP fully diluted earnings per share to be within a range of
$2.37 $2.42 1% higher or lower than the$2.39 - Adjusted fully diluted earnings per share to grow within a range of
10% to12% , to$2.64 $2.69 $2.41
Conference Call
CBIZ will host a conference call at 11 a.m. (ET) today to discuss its third-quarter and nine-month financial results. The call will be webcast and an archived replay will be available at https://cbiz.gcs-web.com/ investor-overview. Participants can register at https://dpregister.com/sreg/10193759/fdc246933b .
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
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; 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
With respect to the agreement to acquire Marcum, such risks and uncertainties include, but are not limited to: the ability of the parties to consummate the transaction in a timely manner or at all; satisfaction of the conditions precedent to consummation of the transaction, including the ability to secure regulatory approvals in a timely manner or at all; the possibility of litigation related to the transaction and the effects thereof; the possibility that anticipated benefits and/or synergies of the transaction will not be achieved in a timely manner or at all; the possibility that the costs of the transaction and/or liabilities assumed will be more significant than anticipated; the possibility that integration will prove more costly and/or time consuming than anticipated; the possibility that the transaction could disrupt ongoing plans and operations of the parties or their respective relationships with clients, other business partners and employees; the possibility that the financing will not be obtained as anticipated and the effects of the increased leverage of the Company following the transaction; and other risks described in the Company's filings with the Securities and Exchange Commission ("SEC").
Such forward-looking statements can be affected by inaccurate assumptions we might make or by known or unknown risks and uncertainties. Should one or more of these risks materialize, or should the underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. Consequently, no forward-looking statements can be guaranteed.
A more detailed description of such risks and uncertainties may be found in "Item 1A. Risk Factors" of the Company's Annual Report on Form 10-K for the year ended December 31, 2023, "Item 1A. Risk Factors" of the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, and the Company's other filings with the SEC 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.
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Three Months Ended September 30, | |||||||||
2024 | % | 2023 | % | ||||||
Revenue | 100.0 % | 100.0 % | |||||||
Operating expenses (1) | 365,971 | 83.4 | 342,148 | 83.3 | |||||
Gross margin | 72,913 | 16.6 | 68,391 | 16.7 | |||||
Corporate general and administrative expenses (1) | 23,227 | 5.3 | 13,136 | 3.2 | |||||
Operating income | 49,686 | 11.3 | 55,255 | 13.5 | |||||
Other (expense) income: | |||||||||
Interest expense | (4,968) | (1.1) | (5,848) | (1.4) | |||||
Gain on sale of operations, net | 4,953 | 1.1 | 77 | — | |||||
Other income (expense), net (1) (2) | 1,300 | 0.3 | (2,288) | (0.6) | |||||
Total other income (expense), net | 1,285 | 0.3 | (8,059) | (2.0) | |||||
Income before income tax expense | 50,971 | 11.6 | 47,196 | 11.5 | |||||
Income tax expense | 15,887 | 13,514 | |||||||
Net income | 8.0 % | 8.2 % | |||||||
Diluted earnings per share | $ 0.70 | $ 0.67 | |||||||
Diluted weighted average common shares outstanding | 50,401 | 50,371 | |||||||
Other data: | |||||||||
Adjusted EBITDA (3) | |||||||||
Adjusted EPS (3) | $ 0.84 | $ 0.66 | |||||||
(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 three months ended September 30, 2024, and 2023, are as follows (in thousands): | |||||||||
Three Months Ended September 30, | ||||
2024 | % of Revenue | 2023 | % of Revenue | |
Operating (income) expenses | $ 7,305 | 1.7 % | $ (3,009) | (0.7) % |
Corporate general & administrative (income) expenses | 1,064 | 0.2 % | (452) | (0.1) % |
Other income (expenses), net | 8,369 | 1.9 % | (3,461) | (0.8) % |
Excluding the impact of the previously mentioned income and expenses related to the deferred compensation plan, the operating results for the three months ended September 30, 2024, and 2023, are as follows (in thousands): |
Three Months Ended September 30, | |||||||||
2024 | 2023 | ||||||||
As | Deferred | Adjusted | % of | As | Deferred | Adjusted | % of | ||
Gross margin | $ 7,305 | 18.3 % | $ (3,009) | 15.9 % | |||||
Operating income | 49,686 | 8,369 | 58,055 | 13.2 % | 55,255 | (3,461) | 51,794 | 12.6 % | |
Other income (expense), net | 1,300 | (8,369) | (7,069) | (1.6) % | (2,288) | 3,461 | 1,173 | 0.3 % | |
Income before income tax expense | 50,971 | — | 50,971 | 11.6 % | 47,196 | — | 47,196 | 11.5 % | |
(2) Included in "Other income (expense), net" for the three months ended September 30, 2024, and 2023, is expense of (3) Refer to the schedules reconciling Adjusted earnings per share and Adjusted EBITDA to the most directly comparable GAAP 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.
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Nine Months Ended September 30, | ||||
2024 | % | 2023 | % | |
Revenue | 100.0 % | 100.0 % | ||
Operating expenses (1) | 1,108,824 | 81.9 | 1,027,146 | 81.3 |
Gross margin | 244,369 | 18.1 | 236,501 | 18.7 |
Corporate general and administrative expenses (1) | 63,988 | 4.7 | 44,527 | 3.5 |
Operating income | 180,381 | 13.4 | 191,974 | 15.2 |
Other (expense) income: | ||||
Interest expense | (15,363) | (1.1) | (15,023) | (1.2) |
Gain on sale of operations, net | 4,953 | 0.4 | 176 | — |
Other income, net (1) (2) | 13,207 | 1.0 | 8,245 | 0.7 |
Total other income (expense), net | 2,797 | 0.3 | (6,602) | (0.5) |
Income before income tax expense | 183,178 | 13.7 | 185,372 | 14.7 |
Income tax expense | 51,417 | 51,667 | ||
Net income | 131,761 | 9.7 % | 133,705 | 10.6 % |
Diluted earnings per share | $ 2.62 | $ 2.64 | ||
Diluted weighted average common shares outstanding | 50,359 | 50,644 | ||
Other data: | ||||
Adjusted EBITDA (3) | ||||
Adjusted EPS (3) | $ 2.87 | $ 2.67 | ||
(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, 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, 2024, and 2023, are as follows (in thousands):
|
Nine Months Ended September 30, | ||||
2024 | % of Revenue | 2023 | % of Revenue | |
Operating expenses | $ 18,164 | 1.3 % | $ 6,853 | 0.5 % |
Corporate general and administrative | 2,444 | 0.2 % | 821 | 0.1 % |
Other income, net | 20,608 | 1.5 % | 7,674 | 0.6 % |
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, 2024, and 2023, are as follows (in thousands): |
Nine Months Ended September 30, | ||||||||
2024 | 2023 | |||||||
As | Deferred Compensation | % of | As | Deferred Compensation | % of | |||
Reported | Plan | Adjusted | Revenue | Reported | Plan | Adjusted | Revenue | |
Gross margin | $ 18,164 | 19.4 % | $ 6,853 | 19.3 % | ||||
Operating income | 180,381 | 20,608 | 200,989 | 14.9 % | 191,974 | 7,674 | 199,648 | 15.8 % |
Other income (expense), net | 13,207 | (20,608) | (7,401) | (0.5) % | 8,245 | (7,674) | 571 | — % |
Income before income tax expense | 183,178 | — | 183,178 | 13.5 % | 185,372 | — | 185,372 | 14.7 % |
(1) Included in "Other income, net" for the nine months ended September 30, 2024, and 2023, is expense of
(2) Refer to the schedules reconciling Adjusted earnings per share and Adjusted EBITDA 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.
SELECT SEGMENT DATA
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Three Months Ended September 30, | Nine Months Ended September 30, | |||
2024 | 2023 | 2024 | 2023 | |
Revenue | ||||
Financial Services | $ 322,295 | $ 298,372 | $ 1,004,158 | $ 932,388 |
Benefits and Insurance Services | 104,040 | 100,287 | 309,867 | 296,179 |
National Practices | 12,549 | 11,880 | 39,168 | 35,080 |
Total | $ 438,884 | $ 410,539 | $ 1,353,193 | $ 1,263,647 |
Gross Margin | ||||
Financial Services | $ 61,656 | $ 48,692 | $ 215,149 | $ 194,820 |
Benefits and Insurance Services | 21,075 | 20,651 | 60,022 | 61,246 |
National Practices | 1,448 | 1,213 | 4,106 | 3,285 |
Operating expenses - unallocated (1): | ||||
Other expense | (3,961) | (5,174) | (16,744) | (15,997) |
Deferred compensation | (7,305) | 3,009 | (18,164) | (6,853) |
Total | $ 72,913 | $ 68,391 | $ 244,369 | $ 236,501 |
(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 or 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. | ||
Nine Months Ended September 30, | ||
2024 | 2023 | |
Net income | $ 131,761 | $ 133,705 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 28,593 | 26,965 |
Gain on sale of operations, net | (4,953) | (176) |
Bad debt expense, net of recoveries | 2,099 | 1,011 |
Adjustments to contingent earnout liability, net | 6,340 | 2,071 |
Stock-based compensation expense | 7,431 | 9,721 |
Other noncash adjustments | 5,276 | 5,533 |
Net income, after adjustments to reconcile net income to net cash provided by operating activities | 176,547 | 178,830 |
Changes in assets and liabilities, net of acquisitions and divestitures | (108,379) | (121,576) |
Net cash provided by operating activities | 68,168 | 57,254 |
Net cash used in investing activities | (24,911) | (76,630) |
Net cash used in financing activities | (85,222) | (18,442) |
Net decrease in cash, cash equivalents and restricted cash | (41,965) | (37,818) |
Cash, cash equivalents and restricted cash at beginning of year | $ 157,148 | $ 160,145 |
Cash, cash equivalents and restricted cash at end of period | $ 115,183 | $ 122,327 |
Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheet: | ||
Cash and cash equivalents | $ 1,076 | $ 1,415 |
Restricted cash | 43,104 | 38,229 |
Cash equivalents included in funds held for clients | 71,003 | 82,683 |
Total cash, cash equivalents and restricted cash | $ 115,183 | $ 122,327 |
CBIZ, INC.
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September 30, 2024 | December 31, 2023 | ||||
Cash and cash equivalents | 1,076 | 8,090 | |||
Restricted cash | 43,104 | 30,362 | |||
Accounts receivable, net | 476,565 | 380,152 | |||
Other current assets | 42,902 | 34,895 | |||
Current assets before funds held for clients | 563,647 | 453,499 | |||
Funds held for clients | 112,148 | 159,186 | |||
Goodwill and other intangible assets, net | 1,030,104 | 1,008,604 | |||
Total assets | 2,133,370 | 2,043,592 | |||
Current liabilities before client fund obligations | 340,598 | 352,028 | |||
Client fund obligations | 112,319 | 159,893 | |||
Total long-term debt, net | 335,835 | 310,826 | |||
Total liabilities | 1,205,450 | 1,251,974 | |||
Treasury stock | (910,537) | (899,093) | |||
Total stockholders' equity | 927,920 | 791,618 | |||
Debt to equity | 36.2 % | 39.3 % | |||
Days sales outstanding (DSO) (1) | 97 | 78 | |||
Shares outstanding | 50,188 | 49,814 | |||
Basic weighted average common shares outstanding | 50,101 | 49,989 | |||
Diluted weighted average common shares outstanding | 50,359 | 50,557 | |||
(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, 2023, was 96. | |||||
CBIZ, INC. GAAP RECONCILIATION
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Three Months Ended September 30, | |||||
2024 | 2023 | ||||
Amounts | EPS | Amounts | EPS | ||
Net income | $ 35,084 | $ 0.70 | $ 33,682 | $ 0.67 | |
Adjustments: | |||||
Gain on sale of assets, net | — | — | (1,375) | (0.03) | |
Integration & retention costs related to acquisitions (2) | 347 | 0.01 | 583 | 0.01 | |
Facility optimization costs (3) | — | — | 255 | 0.01 | |
Gain on sale of operations, net | (4,953) | (0.10) | (77) | — | |
Transaction costs (4) | 14,794 | 0.29 | — | — | |
Income tax effect related to adjustments | (2,954) | (0.06) | 154 | 0.00 | |
Adjusted net income | $ 0.84 | $ 33,222 | $ 0.66 | ||
Interest expense | $ 4,968 | $ 5,848 | |||
Income tax expense | 15,887 | 13,514 | |||
Tax effect related to the adjustments above | 2,954 | (154) | |||
Depreciation | 3,532 | 3,083 | |||
Amortization | 6,054 | 6,051 | |||
Adjusted EBITDA | $ 75,713 | $ 61,564 | |||
Nine Months Ended September 30, | |||||
2024 | 2023 | ||||
Amounts | EPS | Amounts | EPS | ||
Net income | $ 131,761 | $ 2.62 | $ 133,705 | $ 2.64 | |
Adjustments: | |||||
Gain on sale of assets, net | — | — | (1,500) | (0.03) | |
Transaction costs related to acquisitions (2) | — | — | 611 | 0.01 | |
Integration & retention costs related to acquisitions (2) | 1,259 | 0.03 | 2,451 | 0.05 | |
Facility optimization costs (3) | 340 | 0.01 | 476 | 0.01 | |
Gain on sale of operations, net | (4,953) | (0.10) | (176) | — | |
Transaction costs (4) | 21,445 | 0.43 | — | — | |
Income tax effect related to adjustments | (5,078) | (0.12) | (568) | (0.01) | |
Adjusted net income | $ 144,774 | $ 2.87 | $ 134,999 | $ 2.67 | |
Interest expense | $ 15,363 | $ 15,023 | |||
Income tax expense | 51,417 | 51,667 | |||
Tax effect related to the adjustments above | 5,078 | 568 | |||
Depreciation | 10,575 | 9,174 | |||
Amortization | 18,019 | 17,791 | |||
Adjusted EBITDA | $ 245,226 | $ 229,222 | |||
(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 financial information determined under GAAP. Adjusted net 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 performance measures 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 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 CAPs and Advisors. (3) These costs relate to incremental non-recurring lease expense incurred as a result of CBIZ's real estate optimization efforts. (4) These costs include, but are not limited to, certain non-recurring legal and other professional service costs incurred in connection with the announced purchase of Marcum. |
CBIZ, INC. | ||||
Full Year 2024 Guidance | ||||
Low | High | |||
Diluted EPS - GAAP Guidance | $ | 2.37 | $ | 2.42 |
Adjustments: | ||||
Transaction costs(2) | 0.31 | 0.31 | ||
Other adjustments (3) | (0.04) | (0.04) | ||
Adjusted Diluted EPS Guidance | $ | 2.64 | $ | 2.69 |
GAAP Diluted EPS for 2023 | $ | 2.39 | $ | 2.39 |
Adjusted Diluted EPS for 2023 | $ | 2.41 | 2.41 | |
GAAP Diluted EPS Range | (1) % | 1 % | ||
Adjusted Diluted EPS Range | 10 % | 12 % | ||
(1) The full year 2024 guidance is based on management's current expectations for the remainder of 2024, excluding the impact of the announced acquisition of Marcum. |
(2) These costs include, but are not limited to, certain non-recurring legal and other professional service costs incurred in connection with the announced purchase of Marcum. |
(3) These adjustments include, but are not limited to, certain non-recurring consulting, technology, personnel, and other first year operating and general administrative costs incurred related to the acquisitions of Erickson, Brown & Kloster, LLC and CompuData, Inc., as well as the gain on sale of certain operations. |
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SOURCE CBIZ, Inc.
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