SECOND-QUARTER HIGHLIGHTS:
- TOTAL REVENUE UP 29.9%; SAME-UNIT REVENUE UP 11.4%
- GAAP EPS UP 275.0%; ADJUSTED EPS UP 26.0%
- INCOME FROM CONTINUING OPERATIONS UP 262.9%; ADJUSTED EBITDA UP
29.9%
FIRST-HALF HIGHLIGHTS:
- TOTAL REVENUE UP 30.1%; SAME-UNIT REVENUE UP 10.5%
- GAAP EPS UP 56.0%; ADJUSTED EPS UP 26.6%
- INCOME FROM CONTINUING OPERATIONS UP 52.0%; ADJUSTED EBITDA UP
27.9%
CLEVELAND, July 28,
2022 /PRNewswire/ -- CBIZ, Inc., (NYSE: CBZ) ("CBIZ",
or the "Company"), a leading provider of financial, insurance and
advisory services, today announced results for the second quarter
ended June 30, 2022.
For the 2022 second quarter, CBIZ recorded revenue of
$362.0 million, an increase of
$83.3 million, or 29.9%, compared
with $278.6 million reported for
the same period in 2021. Acquired operations, net of divestitures,
contributed $51.6 million, or 18.5%,
to second-quarter 2022 revenue growth. Same-unit revenue increased
by $31.7 million, or 11.4%, for the
quarter, compared with the same period a year ago. Income from
continuing operations was $31.3
million, or $0.60 per diluted
share, compared with $8.6 million, or
$0.16 per diluted share, for the same
period a year ago.
Adjusted income from continuing operations was $32.6 million, or $0.63 per diluted share, compared with
$27.1 million, or $0.50 per diluted share, for the same period a
year ago. Adjusted EBITDA for the second quarter was $55.7 million, compared with $42.9 million for the same period in 2021.
For the six months ended June 30, 2022, CBIZ recorded
revenue of $753.7 million, an
increase of $174.3 million, or 30.1%,
over the $579.4 million recorded
for the same period in 2021. Acquisitions, net of divestitures,
contributed $113.8 million, or 19.6%,
to revenue growth in the six months ended June 30, 2022.
Same-unit revenue increased by $60.5
million, or 10.5%, compared with the same period a year ago.
Income from continuing operations was $89.4
million, or $1.70 per diluted
share, for the six months ended June 30, 2022, compared with
$58.8 million, or $1.09 per diluted share, for the same period a
year ago.
Adjusted income from continuing operations was $95.2 million, or $1.81 per diluted share, for the six months ended
June 30, 2022, compared with
$77.1 million, or $1.43 per diluted share, for the same period a
year ago. Adjusted EBITDA for the first half was $148.6 million, compared with $116.2 million for the same period in 2021.
In the second quarter of 2021, the Company recorded a
non-recurring settlement charge of $30.5
million and a $6.4 million
non-recurring gain on sale of operations. These items were
eliminated to arrive at Adjusted earnings per diluted share for the
second-quarter and first-half periods ended June 30, 2021. In 2022, the Company incurred
non-recurring transaction and first-year integration expenses
related to the Marks Paneth acquisition. These expenses were
eliminated to report Adjusted earnings per diluted share for 2022.
Schedules reconciling Adjusted income from continuing operations,
Adjusted EPS and Adjusted EBITDA to the most directly comparable
GAAP measures can be found in tables included in the release.
During the first half ended June 30,
2022, the Company repurchased approximately 884 thousand
shares of its common stock on the open market. Between July 1, 2022, and July 27,
2022, the Company repurchased an additional
200 thousand shares. The balance outstanding on the Company's
unsecured credit facility on June 30, 2022, was $266.0 million with $323.2
million of unused borrowing capacity.
Jerry Grisko, CBIZ President and
Chief Executive Officer, said, "Our exceptional performance for the
second quarter and first half of 2022 is a direct result of our
long-term strategy and focus on organic growth, strategic
acquisitions and investments that strengthen our business and
position us for the future. We continue to see growth across every
major service line due to the ongoing demand for both our
essential, recurring services and our project-based advisory
services. In addition, the performance of our recent acquisitions
is also helping to bolster our strong results. Earlier this month,
we were pleased to welcome our latest acquisition, Stinnett and Associates, a professional
advisory firm with offices in Oklahoma, Texas and Colorado."
"As a result of our strong organic growth for the first half of
the year combined with the performance of our recent acquisitions,
we are raising our full-year 2022 guidance to reflect anticipated
revenue growth between 23% and 25% and growth in Adjusted earnings
per share between 25% and 27%," Grisko concluded.
2022 Outlook
- The Company increased its revenue growth expectations to within
a range of 23% to 25% over the prior year, up from previous
guidance of 19% to 21% in revenue growth.
- Although multiple factors may impact the tax rate, the Company
expects an effective tax rate of approximately 25%.
- The Company expects a weighted average fully diluted share
count of 52.5 million to 53.0 million shares.
- On a GAAP basis, the Company expects full-year fully diluted
earnings per share from continuing operations to grow within a
range of 45% to 48% per share, over the $1.32 per share reported in 2021, up from
previous guidance of 43% to 46% per share.
- The Company expects Adjusted fully diluted earnings per share
from continuing operations to grow within a range of 25% to 27%
over the Adjusted $1.66 reported for
2021, up from previous guidance of a 20% to 22% increase per share.
A schedule reconciling GAAP Diluted EPS to Non-GAAP Adjusted
Diluted EPS is attached.
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/10169243/f3ae1c6ba2.
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 100 offices
in 32 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 impact of COVID-19 on the Company's business
and operations and those of our clients; the Company's ability to
adequately manage and sustain its growth; the Company's dependence
on the current trend of outsourcing business services; the
Company's dependence on the services of its CEO and other key
employees; competitive pricing pressures; general business and
economic conditions; and changes in governmental regulation and tax
laws affecting the Company's insurance business or its business
services operations. 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
JUNE 30, 2022 AND 2021
(In thousands,
except percentages and per share data)
|
|
|
|
Three Months Ended
June 30,
|
|
|
2022
|
|
%
|
|
2021
|
|
%
|
Revenue
|
|
$
361,952
|
|
100.0 %
|
|
$
278,648
|
|
100.0 %
|
Operating expenses
(1)
|
|
289,736
|
|
80.0
|
|
236,934
|
|
85.0
|
Gross
margin
|
|
72,216
|
|
20.0
|
|
41,714
|
|
15.0
|
Corporate general and
administrative expenses (1)
|
|
10,926
|
|
3.0
|
|
13,816
|
|
5.0
|
Legal settlement,
net
|
|
—
|
|
—
|
|
30,468
|
|
10.9
|
Operating income
(loss)
|
|
61,290
|
|
17.0
|
|
(2,570)
|
|
(0.9)
|
Other (expense)
income:
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(1,645)
|
|
(0.5)
|
|
(959)
|
|
(0.3)
|
Gain on sale of
operations, net
|
|
135
|
|
—
|
|
6,385
|
|
2.3
|
Other (expense)
income, net (1) (2)
|
|
(15,898)
|
|
(4.4)
|
|
8,373
|
|
3.0
|
Total other (expense)
income, net
|
|
(17,408)
|
|
(4.9)
|
|
13,799
|
|
5.0
|
Income from
continuing operations before income tax expense
|
|
43,882
|
|
12.1
|
|
11,229
|
|
4.1
|
Income tax
expense
|
|
12,622
|
|
|
|
2,616
|
|
|
Income from
continuing operations
|
|
31,260
|
|
8.6
|
|
8,613
|
|
3.1
|
Loss from operations of
discontinued businesses, net of tax
|
|
(5)
|
|
|
|
(6)
|
|
|
Net
Income
|
|
$
31,255
|
|
8.6 %
|
|
$
8,607
|
|
3.1 %
|
|
|
|
|
|
|
|
|
|
Diluted income per
share:
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$ 0.60
|
|
|
|
$ 0.16
|
|
|
Discontinued
operations
|
|
—
|
|
|
|
—
|
|
|
Net
income
|
|
$
0.60
|
|
|
|
$
0.16
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average common shares outstanding
|
|
52,531
|
|
|
|
53,769
|
|
|
Other data from
continuing operations:
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(3)
|
|
$
55,732
|
|
|
|
$
42,895
|
|
|
Adjusted EPS
(3)
|
|
$ 0.63
|
|
|
|
$ 0.50
|
|
|
|
|
(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) income, net." The deferred compensation plan has no
impact on "Income from continuing operations before income tax
expense."
|
Income and expenses
related to the deferred compensation plan for the three months
ended June 30, 2022, and 2021 are as follows (in
thousands):
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
2022
|
|
% of
Revenue
|
|
2021
|
|
% of
Revenue
|
Operating (income)
expenses
|
|
$
(13,338)
|
|
(3.7) %
|
|
$
6,761
|
|
2.4 %
|
Corporate general and
administrative (income) expenses
|
|
(1,811)
|
|
(0.5) %
|
|
850
|
|
0.3 %
|
Other (expense) income,
net
|
|
(15,149)
|
|
(4.1) %
|
|
7,611
|
|
2.7 %
|
Excluding the impact of
the above-mentioned income and expenses related to the deferred
compensation plan, the operating results for the three months ended
June 30, 2022, and 2021 are as
follows (in thousands):
|
|
|
|
Three Months Ended
June 30,
|
|
2022
|
|
2021
|
|
As
Reported
|
|
Deferred
Compensation
Plan
|
|
Adjusted
|
|
% of
Revenue
|
|
As
Reported
|
|
Deferred
Compensation
Plan
|
|
Adjusted
|
|
% of
Revenue
|
Gross margin
|
$
72,216
|
|
$
(13,338)
|
|
$
58,878
|
|
16.3 %
|
|
$
41,714
|
|
$
6,761
|
|
$
48,475
|
|
17.4 %
|
Operating income
(expense)
|
61,290
|
|
(15,149)
|
|
46,141
|
|
12.7 %
|
|
(2,570)
|
|
7,611
|
|
5,041
|
|
1.8 %
|
Other (expense) income,
net
|
(15,898)
|
|
15,149
|
|
(749)
|
|
(0.2) %
|
|
8,373
|
|
(7,611)
|
|
762
|
|
0.3 %
|
Income from continuing
operations before income tax expense
|
43,882
|
|
—
|
|
43,882
|
|
12.1 %
|
|
11,229
|
|
—
|
|
11,229
|
|
4.0 %
|
|
|
(2)
|
Included in "Other
(expense) income, net" for the three months ended June 30, 2022 and
2021, is expense of $0.8 million and $0.1 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)
SIX MONTHS ENDED
JUNE 30, 2022 AND 2021
(In thousands,
except percentages and per share data)
|
|
|
|
Six Months Ended
June 30,
|
|
|
2022
|
|
%
|
|
2021
|
|
%
|
Revenue
|
|
$
753,674
|
|
100.0 %
|
|
$
579,378
|
|
100.0 %
|
Operating expenses
(1)
|
|
580,035
|
|
77.0
|
|
460,905
|
|
79.6
|
Gross
margin
|
|
173,639
|
|
23.0
|
|
118,473
|
|
20.4
|
Corporate general and
administrative expenses (1)
|
|
27,235
|
|
3.6
|
|
28,299
|
|
4.9
|
Legal settlement,
net
|
|
—
|
|
—
|
|
30,468
|
|
5.3
|
Operating
income
|
|
146,404
|
|
19.4
|
|
59,706
|
|
10.2
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(2,904)
|
|
(0.4)
|
|
(1,836)
|
|
(0.3)
|
Gain on sale of
operations, net
|
|
135
|
|
—
|
|
6,385
|
|
1.1
|
Other (expense) income,
net (1) (2)
|
|
(22,301)
|
|
(3.0)
|
|
13,162
|
|
2.3
|
Total other (expense)
income, net
|
|
(25,070)
|
|
(3.4)
|
|
17,711
|
|
3.1
|
Income from
continuing operations before income tax expense
|
|
121,334
|
|
16.0
|
|
77,417
|
|
13.3
|
Income tax
expense
|
|
31,943
|
|
|
|
18,588
|
|
|
Income from
continuing operations
|
|
89,391
|
|
11.9
|
|
58,829
|
|
10.2
|
Loss from operations of
discontinued businesses, net of tax
|
|
(9)
|
|
|
|
(13)
|
|
|
Net
income
|
|
$
89,382
|
|
11.9 %
|
|
$
58,816
|
|
10.2 %
|
|
|
|
|
|
|
|
|
|
Diluted income per
share:
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$ 1.70
|
|
|
|
$ 1.09
|
|
|
Discontinued
operations
|
|
—
|
|
|
|
—
|
|
|
Net
income
|
|
$
1.70
|
|
|
|
$
1.09
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average common shares outstanding
|
|
52,736
|
|
|
|
54,109
|
|
|
Other data from
continuing operations:
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(3)
|
|
$ 148,629
|
|
|
|
$ 116,212
|
|
|
Adjusted EPS
(3)
|
|
$ 1.81
|
|
|
|
$ 1.43
|
|
|
|
|
(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) income,
net." The deferred
compensation plan has no impact on "Income from continuing
operations before income tax expense."
|
Income and expenses
related to the deferred compensation plan for the six months ended
June 30, 2022, and 2021 are as follows (in
thousands):
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
2022
|
|
% of
Revenue
|
|
2021
|
|
% of
Revenue
|
Operating (income)
expenses
|
|
$
(19,005)
|
|
(2.5) %
|
|
$ 11,377
|
|
2.0 %
|
Corporate general and
administrative (income) expenses
|
|
(2,622)
|
|
(0.3) %
|
|
1,346
|
|
0.2 %
|
Other (expense) income,
net
|
|
(21,627)
|
|
(2.9) %
|
|
12,723
|
|
2.2 %
|
Excluding the impact of
the above-mentioned income and expenses related to the deferred
compensation plan, the operating results for the six months ended
June 30, 2022, and 2021 are as follows (in
thousands):
|
|
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2021
|
|
As
Reported
|
|
Deferred
Compensation
Plan
|
|
Adjusted
|
|
% of
Revenue
|
|
As
Reported
|
|
Deferred
Compensation
Plan
|
|
Adjusted
|
|
% of
Revenue
|
Gross margin
|
$ 173,639
|
|
$
(19,005)
|
|
$ 154,634
|
|
20.5 %
|
|
$ 118,473
|
|
$ 11,377
|
|
$ 129,850
|
|
22.4 %
|
Operating income
(expense)
|
146,404
|
|
(21,627)
|
|
124,777
|
|
16.6 %
|
|
59,706
|
|
12,723
|
|
72,429
|
|
12.5 %
|
Other (expense) income,
net
|
(22,301)
|
|
21,627
|
|
(674)
|
|
(0.1) %
|
|
13,162
|
|
(12,723)
|
|
439
|
|
0.1 %
|
Income from continuing
operations before income tax expense
|
121,334
|
|
—
|
|
121,334
|
|
16.1 %
|
|
77,417
|
|
—
|
|
77,417
|
|
13.4 %
|
|
|
(2)
|
Included in "Other
(expense) income, net" for the six months ended June 30, 2022 and
2021, is expense of $1.5 million and $0.8 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)
SELECT SEGMENT
DATA
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Revenue
|
|
|
|
|
|
|
|
|
Financial
Services
|
|
$ 259,308
|
|
$ 186,589
|
|
$ 548,054
|
|
$ 390,738
|
Benefits and Insurance
Services
|
|
91,708
|
|
82,620
|
|
184,194
|
|
169,859
|
National
Practices
|
|
10,936
|
|
9,439
|
|
21,426
|
|
18,781
|
Total
|
|
$
361,952
|
|
$
278,648
|
|
$
753,674
|
|
$
579,378
|
|
|
|
|
|
|
|
|
|
Gross
Margin
|
|
|
|
|
|
|
|
|
Financial
Services
|
|
$
49,665
|
|
$
35,669
|
|
$ 128,611
|
|
$
98,072
|
Benefits and Insurance
Services
|
|
16,688
|
|
14,844
|
|
36,517
|
|
35,150
|
National
Practices
|
|
1,037
|
|
952
|
|
1,951
|
|
1,753
|
Operating expenses -
unallocated (1):
|
|
|
|
|
|
|
|
|
Other
expense
|
|
(8,512)
|
|
(2,990)
|
|
(12,445)
|
|
(5,125)
|
Deferred
compensation
|
|
13,338
|
|
(6,761)
|
|
19,005
|
|
(11,377)
|
Total
|
|
$
72,216
|
|
$
41,714
|
|
$
173,639
|
|
$
118,473
|
|
|
(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 from
continuing operations before income tax
expense" as they are directly offset by the same adjustment to
"Other (expense) 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
(income) in "Operating expenses" and "Corporate,
general and administrative expenses," and offset in "Other
(expense) income, net."
|
CBIZ,
INC.
SELECT CASH FLOW
DATA (UNAUDITED)
(In
thousands)
|
|
|
|
Six Months Ended
June 30,
|
|
|
2022
|
|
2021
|
Net
income
|
|
$
89,382
|
|
$
58,816
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization expense
|
|
16,465
|
|
12,876
|
Gain on sale of
operations, net
|
|
(135)
|
|
(6,385)
|
Bad debt expense, net
of recoveries
|
|
1,263
|
|
265
|
Adjustments to
contingent earnout liability, net
|
|
1,478
|
|
753
|
Stock-based
compensation expense
|
|
6,428
|
|
5,454
|
Other noncash
adjustments
|
|
4,899
|
|
4,882
|
Net income, after
adjustments to reconcile net income to net cash provided by
operating activities
|
|
119,780
|
|
76,661
|
Changes in assets and
liabilities, net of acquisitions and divestitures
|
|
(91,263)
|
|
(10,354)
|
Operating cash flows
provided by continuing operations
|
|
28,517
|
|
66,307
|
Operating cash used in
discontinued operations
|
|
(9)
|
|
(13)
|
Net cash provided by
operating activities
|
|
28,508
|
|
66,294
|
Net cash used in
investing activities
|
|
(89,756)
|
|
(40,137)
|
Net cash provided by
(used in) financing activities
|
|
91,655
|
|
(42,582)
|
Net increase
(decrease) in cash, cash equivalents and restricted
cash
|
|
30,407
|
|
(16,425)
|
Cash, cash equivalents
and restricted cash at beginning of year
|
|
$
150,474
|
|
$
170,335
|
Cash, cash
equivalents and restricted cash at end of period
|
|
$
180,881
|
|
$
153,910
|
|
|
|
|
|
Reconciliation of
cash, cash equivalents and restricted cash to the consolidated
balance sheet:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
3,881
|
|
$
4,677
|
Restricted
cash
|
|
42,188
|
|
39,268
|
Cash equivalents
included in funds held for clients
|
|
134,812
|
|
109,965
|
Total cash, cash
equivalents and restricted cash
|
|
$
180,881
|
|
$
153,910
|
CBIZ,
INC.
SELECT FINANCIAL
DATA AND RATIOS (UNAUDITED)
(In
thousands)
|
|
|
|
June 30,
2022
|
|
December 31,
2021
|
Cash and cash
equivalents
|
|
3,881
|
|
1,997
|
Restricted
cash
|
|
42,188
|
|
30,383
|
Accounts receivable,
net
|
|
410,481
|
|
242,168
|
Current assets before
funds held for clients
|
|
468,771
|
|
293,765
|
Funds held for
clients
|
|
185,271
|
|
157,909
|
Goodwill and other
intangible assets, net
|
|
946,468
|
|
840,783
|
|
|
|
|
|
Total
assets
|
|
1,972,597
|
|
1,627,934
|
|
|
|
|
|
Current liabilities
before client fund obligations
|
|
344,219
|
|
265,174
|
Client fund
obligations
|
|
187,129
|
|
158,115
|
Total long-term debt,
net
|
|
263,718
|
|
154,851
|
|
|
|
|
|
Total
liabilities
|
|
1,208,074
|
|
923,386
|
|
|
|
|
|
Treasury
stock
|
|
(737,559)
|
|
(694,716)
|
|
|
|
|
|
Total stockholders'
equity
|
|
764,523
|
|
704,548
|
|
|
|
|
|
Debt to
equity
|
|
34.5 %
|
|
22.0 %
|
Days sales outstanding
(DSO) - continuing operations (1)
|
|
88
|
|
71
|
|
|
|
|
|
Shares
outstanding
|
|
51,602
|
|
52,038
|
Basic weighted average
common shares outstanding
|
|
52,015
|
|
52,637
|
Diluted weighted
average common shares outstanding
|
|
52,736
|
|
53,723
|
|
|
(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. DSO on June 30, 2021
was 84.
|
CBIZ,
INC.
GAAP
RECONCILIATION
Income from
Continuing Operations to Adjusted
EBITDA (1)
(In
thousands)
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Income from
continuing operations
|
|
$
31,260
|
|
$
8,613
|
|
$
89,391
|
|
$
58,829
|
Interest
expense
|
|
1,645
|
|
959
|
|
2,904
|
|
1,836
|
Income tax
expense
|
|
12,622
|
|
2,616
|
|
31,943
|
|
18,588
|
Gain on sale of
operations, net
|
|
(135)
|
|
(6,385)
|
|
(135)
|
|
(6,385)
|
Legal settlement,
net
|
|
—
|
|
30,468
|
|
—
|
|
30,468
|
Transaction costs
related to Marks Paneth (2)
|
|
—
|
|
—
|
|
1,329
|
|
—
|
Integration &
retention costs related to Marks Paneth (2)
|
|
2,048
|
|
—
|
|
6,732
|
|
—
|
Depreciation
|
|
2,828
|
|
2,649
|
|
5,607
|
|
5,202
|
Amortization
|
|
5,464
|
|
3,975
|
|
10,858
|
|
7,674
|
Adjusted
EBITDA
|
|
$
55,732
|
|
$
42,895
|
|
$
148,629
|
|
$
116,212
|
|
|
(1)
|
CBIZ reports its
financial results in accordance with GAAP. This table reconciles
Adjusted EBITDA to the most directly comparable
GAAP financial measure, "Income from continuing operations."
Adjusted EBITDA is not defined by GAAP and should not be
regarded as an alternative or replacement to any measurement of
performance under GAAP. Adjusted EBITDA is commonly used
by the Company, its shareholders and debt holders as a performance
measurement 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.
|
CBIZ,
INC.
GAAP
RECONCILIATION
Income and Diluted
Earnings Per Share ("EPS") from Continuing Operations to Adjusted
Income and EPS(1)
(In thousands,
except per share data)
|
|
|
Three Months Ended
June 30, 2022
|
|
Three Months Ended
June 30, 2021
|
|
Amounts
|
|
EPS
|
|
Amounts
|
|
EPS
|
Income from
continuing operations
|
$
31,260
|
|
$
0.60
|
|
$
8,613
|
|
$
0.16
|
Adjustments:
|
|
|
|
|
|
|
|
Gain on sale of
operations, net
|
(135)
|
|
—
|
|
(6,385)
|
|
(0.12)
|
Legal settlement,
net
|
—
|
|
—
|
|
30,468
|
|
0.56
|
Integration &
retention costs related to Marks Paneth (2)
|
2,048
|
|
0.04
|
|
—
|
|
—
|
Income tax effect
related to adjustments
|
(550)
|
|
(0.01)
|
|
(5,608)
|
|
(0.10)
|
Adjusted income from
continuing operations
|
$
32,623
|
|
$
0.63
|
|
$
27,088
|
|
$
0.50
|
|
|
(1)
|
CBIZ reports its
financial results in accordance with GAAP. This table reconciles
Adjusted Income and Adjusted EPS to the most directly
comparable GAAP financial measures, "Income from continuing
operations" and "Diluted earnings per share from continuing
operations."
Adjusted Income and Adjusted EPS are not defined by GAAP and should
not be regarded as an alternative or replacement to any
measurement of performance under GAAP. Adjusted Income and Adjusted
EPS, 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.
|
|
Six Months Ended
June 30, 2022
|
|
Six Months Ended
June 30, 2021
|
|
Amounts
|
|
EPS
|
|
Amounts
|
|
EPS
|
Income from
continuing operations
|
$
89,391
|
|
$
1.70
|
|
$
58,829
|
|
$
1.09
|
Adjustments:
|
|
|
|
|
|
|
|
Gain on sale of
operations, net
|
(135)
|
|
—
|
|
(6,385)
|
|
(0.12)
|
Legal settlement,
net
|
—
|
|
—
|
|
30,468
|
|
0.56
|
Transaction costs
related to Marks Paneth (2)
|
1,329
|
|
0.03
|
|
—
|
|
—
|
Integration &
retention costs related to Marks Paneth (2)
|
6,732
|
|
0.13
|
|
—
|
|
—
|
Income tax effect
related to adjustments
|
(2,087)
|
|
(0.05)
|
|
(5,782)
|
|
(0.10)
|
Adjusted income from
continuing operations
|
$
95,230
|
|
$
1.81
|
|
$
77,130
|
|
$
1.43
|
|
|
(1)
|
CBIZ reports its
financial results in accordance with GAAP. This table reconciles
Adjusted Income and Adjusted EPS to the most directly
comparable GAAP financial measures, "Income from continuing
operations" and "Diluted earnings per share from continuing
operations."
Adjusted Income and Adjusted EPS are not defined by GAAP and should
not be regarded as an alternative or replacement to any
measurement of performance under GAAP. Adjusted Income and Adjusted
EPS, 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.
|
CBIZ,
INC.
GAAP
RECONCILIATION
Full Year 2022 EPS
from Continuing Operations Guidance to Full Year 2022 Adjusted
Diluted EPS
|
|
|
Full Year 2022
Guidance
|
|
Low
|
|
High
|
Diluted EPS -
GAAP Guidance
|
$
1.92
|
|
$
1.95
|
Transaction and
integration costs related to Marks Paneth (1)
|
0.16
|
|
0.16
|
Adjusted Diluted EPS
Guidance
|
$
2.08
|
|
$
2.11
|
GAAP Diluted EPS for
2021
|
$
1.32
|
|
$
1.32
|
Adjusted Diluted EPS
for 2021 (2)
|
$
1.66
|
|
$
1.66
|
GAAP Diluted EPS
Range
|
45 %
|
|
48 %
|
Adjusted Diluted
EPS Range
|
25 %
|
|
27 %
|
|
|
(1)
|
Includes estimated
transaction and integration costs related to the Marks Paneth
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 income from continuing operations and adjusted income from
continuing operations and a
reconciliation between GAAP Diluted EPS and Adjusted Diluted EPS
for fiscal year ended December 31, 2021 are
presented as follows:
|
|
|
|
Year Ended December
31, 2021
|
|
In
thousands
|
|
EPS
|
Income from
continuing operations
|
$
70,911
|
|
$
1.32
|
Adjustments:
|
|
|
|
Gain on sale of
operations, net
|
(6,311)
|
|
(0.12)
|
Legal settlement,
net
|
30,468
|
|
0.57
|
Income tax effect
related to adjustments
|
(5,746)
|
|
(0.11)
|
Adjusted income from
continuing operations
|
$
89,322
|
|
$
1.66
|
View original
content:https://www.prnewswire.com/news-releases/cbiz-reports-second-quarter-and-first-half-2022-results-and-raises-full-year-2022-guidance-301594774.html
SOURCE CBIZ, Inc.