FOURTH-QUARTER HIGHLIGHTS:
- TOTAL REVENUE UP 21.5%; SAME-UNIT REVENUE UP 10.1%
FULL-YEAR HIGHLIGHTS:
- TOTAL REVENUE UP 27.8%; SAME-UNIT REVENUE UP 10.9%
- GAAP EPS UP 52.3%; ADJUSTED EPS UP 28.3%
- INCOME FROM CONTINUING OPERATIONS UP 48.6%; ADJUSTED EBITDA UP
28.1%
2023 OUTLOOK:
- TOTAL REVENUE UP 8% TO 10%
- GAAP EPS UP 15% TO 17%; $2.31 TO
$2.36
- ADJUSTED EPS UP 11% TO 13%; $2.36
TO $2.41
CLEVELAND, Feb. 16,
2023 /PRNewswire/ -- CBIZ, Inc., (NYSE: CBZ)
("CBIZ", or the "Company"), a leading provider of financial,
insurance and advisory services, today announced fourth-quarter and
full-year results for the period ended December 31, 2022.
For the 2022 fourth quarter, CBIZ recorded revenue of
$295.0 million, an increase of
$52.2 million, or 21.5%, compared
with $242.8 million reported for
the same period in 2021. Acquired operations, net of divestitures,
contributed $27.7 million, or 11.4%,
to fourth-quarter 2022 revenue growth. Same-unit revenue increased
by $24.5 million, or 10.1%, for the
quarter, compared with the same period a year ago. Loss from
continuing operations was $11.5
million in the 2022 fourth quarter, compared with a loss of
$9.6 million for the same period a
year ago.
Adjusted loss from continuing operations was $10.7 million, or $0.21 per diluted share, compared with
$9.6 million, or $0.19 per diluted share, for the same period a
year ago. Adjusted EBITDA for the fourth quarter was a loss of
$4.4 million, compared with a loss of
$5.0 million for the same period in
2021.
For the full year ended December 31, 2022, CBIZ recorded
revenue of $1,412.0 million, an
increase of $307.1 million, or 27.8%,
over the $1,104.9 million for
the same period in 2021. Acquisitions, net of divestitures,
contributed $187.2 million, or 16.9%,
to revenue growth in the twelve months ended December 31,
2022. Same-unit revenue increased by $119.9
million, or 10.9%, compared with the same period a year ago.
Income from continuing operations was $105.4
million, or $2.01 per diluted
share, for the twelve months ended December 31, 2022, compared
with $70.9 million, or $1.32 per diluted share, for the same period a
year ago.
Adjusted income from continuing operations was $111.4 million, or $2.13 per diluted share, for the full year
ended December 31, 2022, compared with $89.3 million, or $1.66 per diluted share, for the same period a
year ago. Adjusted EBITDA for the twelve months was $190.1 million, compared with $148.5 million for the same period in 2021.
As previously announced, in the second quarter of 2021, the
Company recorded a nonrecurring settlement charge of $30.5 million and a $6.3
million non-recurring gain on sale of operations. These
items were eliminated to arrive at Adjusted earnings per diluted
share for the twelve months ended December
31, 2021. In 2022, the Company incurred approximately
$10.5 million non-recurring
transaction and first-year integration expenses related to the
Marks Paneth acquisition and recorded a $2.4
million gain related to the sale of a book of business in
the property and casualty line of service. These items were
eliminated to arrive at 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 the tables included in
this release.
For the full year ended December 31, 2022, the Company
repurchased a total of 2.8 million shares of its common stock on
the open market. The balance outstanding on the Company's unsecured
credit facility on December 31, 2022, was $265.7 million with $319.9
million of unused borrowing capacity and leverage of
approximately 1.5X Adjusted EBITDA.
Jerry Grisko, CBIZ President and
Chief Executive Officer, said, "2022 was a year to be celebrated at
CBIZ. I am proud to report exceptional results for the past year
with strong growth across every major service line. In addition to
continued demand for the core essential services that we provide to
our clients regardless of business climate, we experienced very
high demand for our more specialty and project-based advisory
services as well."
"2022 also proved to be an important year for our strategic
acquisition activity as we capitalized on a robust pipeline of
opportunities, which added approximately $155 million of annualized revenue with the
transactions that we closed." Grisko continued, "With the
February 1, 2023, acquisition of
Somerset contributing
approximately $55 million of
annualized revenue, momentum with M&A has continued into 2023.
Headquartered in Indianapolis, the
addition of Somerset will
strengthen our presence in the important Midwest region of the
country."
"As we look to 2023, we expect to continue to perform well
despite the economic uncertainties ahead. With the essential
and recurring nature of our core services, combined with a strong
balance sheet and steady cash flow, we are well-positioned going
into 2023," Grisko concluded.
2023 Outlook
- The Company expects revenue to grow within a range of 8% to 10%
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 51.0 to 51.5 million shares.
- The Company expects GAAP fully diluted earnings per share from
continuing operations 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
from continuing operations 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/10175061/f5ac11a7a4.
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 DECEMBER 31, 2022 AND 2021 (In thousands,
except percentages and per share data)
|
|
|
|
Three Months Ended
December 31,
|
|
|
2022
|
|
%
|
|
2021
|
|
%
|
Revenue
|
|
$
295,043
|
|
100.0 %
|
|
$
242,828
|
|
100.0 %
|
Operating expenses
(1)
|
|
302,560
|
|
102.5
|
|
246,402
|
|
101.5
|
Gross
loss
|
|
(7,517)
|
|
(2.5)
|
|
(3,574)
|
|
(1.5)
|
Corporate general and
administrative expenses (1)
|
|
11,895
|
|
4.0
|
|
14,816
|
|
6.1
|
Operating
loss
|
|
(19,412)
|
|
(6.5)
|
|
(18,390)
|
|
(7.6)
|
Other (expense)
income:
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(2,830)
|
|
(0.9)
|
|
(1,016)
|
|
(0.4)
|
Gain (loss) on sale of
operations, net
|
|
102
|
|
—
|
|
(390)
|
|
(0.2)
|
Other income, net
(1) (2)
|
|
5,694
|
|
1.9
|
|
6,212
|
|
2.6
|
Total other income,
net
|
|
2,966
|
|
1.0
|
|
4,806
|
|
2.0
|
Loss from continuing
operations before income tax benefit
|
|
(16,446)
|
|
(5.5)
|
|
(13,584)
|
|
(5.6)
|
Income tax
benefit
|
|
(4,953)
|
|
|
|
(3,971)
|
|
|
Loss from continuing
operations
|
|
(11,493)
|
|
(3.9)
|
|
(9,613)
|
|
(4.0)
|
Loss from operations of
discontinued businesses, net of tax
|
|
(5)
|
|
|
|
(7)
|
|
|
Net
loss
|
|
$
(11,498)
|
|
(3.9) %
|
|
$
(9,620)
|
|
(4.0) %
|
|
|
|
|
|
|
|
|
|
Diluted loss per
share:
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$ (0.23)
|
|
|
|
$ (0.19)
|
|
|
Discontinued
operations
|
|
—
|
|
|
|
—
|
|
|
Net
loss
|
|
$ (0.23)
|
|
|
|
$ (0.19)
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average common shares outstanding
|
|
50,538
|
|
|
|
51,899
|
|
|
Other data from
continuing operations:
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(3)
|
|
$
(4,351)
|
|
|
|
$
(5,021)
|
|
|
Adjusted EPS
(3)
|
|
$ (0.21)
|
|
|
|
$ (0.19)
|
|
|
(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 in "Other income, net." The deferred
compensation plan has no impact on "Loss from continuing
operations before income tax benefit."
|
|
|
|
Income and expenses
related to the deferred compensation plan for the three months
ended December 31, 2022, and 2021 are as follows (in
thousands):
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
|
2022
|
|
% of
Revenue
|
|
2021
|
|
% of
Revenue
|
|
Operating
expenses
|
|
$
5,748
|
|
1.9 %
|
|
$
6,152
|
|
2.5 %
|
|
Corporate general and
administrative expenses
|
|
926
|
|
0.3 %
|
|
908
|
|
0.4 %
|
|
Other income,
net
|
|
6,674
|
|
2.3 %
|
|
7,060
|
|
2.9 %
|
|
|
|
|
|
|
|
|
|
|
|
Excluding the impact of
the above-mentioned income and expenses related to the deferred
compensation plan, the operating
results for the three months ended December 31, 2022, and 2021 are
as follows (in thousands):
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
2022
|
|
2021
|
|
|
As
Reported
|
|
Deferred
Compensation
Plan
|
|
Adjusted
|
|
% of
Revenue
|
|
As
Reported
|
|
Deferred
Compensation
Plan
|
|
Adjusted
|
|
% of
Revenue
|
|
Gross (loss)
margin
|
$
(7,517)
|
|
$
5,748
|
|
$
(1,769)
|
|
(0.6) %
|
|
$
(3,574)
|
|
$
6,152
|
|
$
2,578
|
|
1.1 %
|
|
Operating
loss
|
(19,412)
|
|
6,674
|
|
(12,738)
|
|
(4.3) %
|
|
(18,390)
|
|
7,060
|
|
(11,330)
|
|
(4.7) %
|
|
Other income (expense),
net
|
5,694
|
|
(6,674)
|
|
(980)
|
|
(0.3) %
|
|
6,212
|
|
(7,060)
|
|
(848)
|
|
(0.3) %
|
|
Loss from continuing
operations before
income tax benefit
|
(16,446)
|
|
—
|
|
(16,446)
|
|
(5.6) %
|
|
(13,584)
|
|
—
|
|
(13,584)
|
|
(5.6) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Included in "Other
income, net" for the three months ended December 31, 2022 and
2021, is expense of $0.5 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) TWELVE
MONTHS ENDED DECEMBER 31, 2022 AND 2021 (In thousands,
except percentages and per share data)
|
|
|
|
Twelve Months Ended
December 31,
|
|
|
2022
|
|
%
|
|
2021
|
|
%
|
Revenue
|
|
$
1,411,979
|
|
100.0 %
|
|
$
1,104,925
|
|
100.0 %
|
Operating expenses
(1)
|
|
1,188,612
|
|
84.2
|
|
945,635
|
|
85.6
|
Gross
margin
|
|
223,367
|
|
15.8
|
|
159,290
|
|
14.4
|
Corporate general and
administrative expenses (1)
|
|
55,023
|
|
3.8
|
|
56,150
|
|
5.1
|
Legal settlement,
net
|
|
—
|
|
—
|
|
30,468
|
|
2.7
|
Operating
income
|
|
168,344
|
|
12.0
|
|
72,672
|
|
6.6
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(8,039)
|
|
(0.6)
|
|
(3,868)
|
|
(0.4)
|
Gain on sale of
operations, net
|
|
413
|
|
—
|
|
5,995
|
|
0.5
|
Other (expense) income,
net (1) (2)
|
|
(19,225)
|
|
(1.4)
|
|
18,241
|
|
1.7
|
Total other (expense)
income, net
|
|
(26,851)
|
|
(2.0)
|
|
20,368
|
|
1.8
|
Income from
continuing operations before income tax expense
|
|
141,493
|
|
10.0
|
|
93,040
|
|
8.4
|
Income tax
expense
|
|
36,121
|
|
|
|
22,129
|
|
|
Income from
continuing operations
|
|
105,372
|
|
7.5
|
|
70,911
|
|
6.4
|
Loss from operations of
discontinued businesses, net of tax
|
|
(18)
|
|
|
|
(24)
|
|
|
Net
income
|
|
$
105,354
|
|
7.5 %
|
|
$
70,887
|
|
6.4 %
|
|
|
|
|
|
|
|
|
|
Diluted income per
share:
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
2.01
|
|
|
|
$ 1.32
|
|
|
Discontinued
operations
|
|
—
|
|
|
|
—
|
|
|
Net
income
|
|
$
2.01
|
|
|
|
$
1.32
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average common shares outstanding
|
|
52,388
|
|
|
|
53,723
|
|
|
Other data from
continuing operations:
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(3)
|
|
$
190,143
|
|
|
|
$
148,459
|
|
|
Adjusted EPS
(3)
|
|
$
2.13
|
|
|
|
$ 1.66
|
|
|
|
|
(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
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 twelve months
ended December 31, 2022, and 2021
are as follows (in thousands):
|
|
|
|
Twelve Months Ended
December 31,
|
|
|
|
2022
|
|
% of
Revenue
|
|
2021
|
|
% of
Revenue
|
|
Operating (income)
expenses
|
|
$
(17,252)
|
|
(1.2) %
|
|
$ 17,317
|
|
1.6 %
|
|
Corporate general and
administrative (income) expenses
|
|
(2,393)
|
|
(0.2) %
|
|
2,168
|
|
0.2 %
|
|
Other (expense) income,
net
|
|
(19,645)
|
|
(1.4) %
|
|
19,485
|
|
1.8 %
|
|
|
|
Excluding the impact of
the above-mentioned income and expenses related to the deferred
compensation plan, the operating
results for the twelve months ended December 31, 2022, and 2021 are
as follows (in thousands):
|
|
|
|
|
Twelve Months Ended
December 31,
|
|
|
2022
|
|
2021
|
|
|
As
Reported
|
|
Deferred
Compensation
Plan
|
|
Adjusted
|
|
% of
Revenue
|
|
As
Reported
|
|
Deferred
Compensation
Plan
|
|
Adjusted
|
|
% of
Revenue
|
|
Gross margin
|
$ 223,367
|
|
$
(17,252)
|
|
$ 206,115
|
|
14.6 %
|
|
$ 159,290
|
|
$ 17,317
|
|
$ 176,607
|
|
16.0 %
|
|
Operating
income
|
168,344
|
|
(19,645)
|
|
148,699
|
|
10.5 %
|
|
72,672
|
|
19,485
|
|
92,157
|
|
8.3 %
|
|
Other (expense) income,
net
|
(19,225)
|
|
19,645
|
|
420
|
|
— %
|
|
18,241
|
|
(19,485)
|
|
(1,244)
|
|
(0.1) %
|
|
Income from continuing
operations
before income tax expense
|
141,493
|
|
—
|
|
141,493
|
|
10.0 %
|
|
93,040
|
|
—
|
|
93,040
|
|
8.4 %
|
|
|
(2)
|
Included in "Other
(expense) income, net" for the twelve months ended
December 31, 2022 and 2021, is expense of $2.4 million
and $2.4 million, respectively, related to net changes in the fair
value of contingent consideration related to CBIZ's prior
acquisitions.
|
|
|
(3)
|
Refer to the financial
highlights tables for a reconciliation of Non-GAAP financial
measures to the most directly comparable
GAAP financial measure, and for additional information as to the
usefulness of the Non-GAAP financial measures to
shareholders and investors.
|
CBIZ,
INC. FINANCIAL HIGHLIGHTS (UNAUDITED) (In
thousands)
|
SELECT SEGMENT
DATA
|
|
|
|
Three Months Ended
December
31,
|
|
Twelve Months Ended
December
31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Revenue
|
|
|
|
|
|
|
|
|
Financial
Services
|
|
$ 202,016
|
|
$ 156,056
|
|
1,010,068
|
|
734,026
|
Benefits and Insurance
Services
|
|
81,746
|
|
76,667
|
|
358,007
|
|
332,323
|
National
Practices
|
|
11,281
|
|
10,105
|
|
43,904
|
|
38,576
|
Total
|
|
$
295,043
|
|
$
242,828
|
|
$
1,411,979
|
|
$
1,104,925
|
|
|
|
|
|
|
|
|
|
Gross
Margin
|
|
|
|
|
|
|
|
|
Financial Services
(1)
|
|
(8,242)
|
|
(3,338)
|
|
$ 160,030
|
|
$ 125,788
|
Benefits and Insurance
Services
|
|
12,357
|
|
8,765
|
|
67,620
|
|
60,673
|
National
Practices
|
|
1,298
|
|
1,153
|
|
4,703
|
|
4,082
|
Operating expenses -
unallocated (2):
|
|
|
|
|
|
|
|
|
Other
expense
|
|
(7,182)
|
|
(4,002)
|
|
(26,238)
|
|
(13,936)
|
Deferred
compensation
|
|
(5,748)
|
|
(6,152)
|
|
17,252
|
|
(17,317)
|
Total
|
|
$
(7,517)
|
|
$
(3,574)
|
|
$
223,367
|
|
$
159,290
|
|
|
(1)
|
Gross margin for the
Financial Services practice group included approximately $0.8
million and $6.7 million one-time and non-recurring integration and
retention costs related to Marks Paneth for the three months and
twelve months ended December 31, 2022, respectively.
|
|
|
(2)
|
Represents operating
expenses not directly allocated to individual businesses, including
stock-based compensation, consolidation and integration charges,
and certain advertising expenses. "Operating expenses -
unallocated" also includes gains or losses attributable to the
assets held in a rabbi trust associated with the Company's deferred
compensation plan. These gains or losses do not impact "Income from
continuing operations before income tax expense" as they are
directly offset by the same adjustment to "Other income, net" in
the Consolidated Statements of Comprehensive Income. Net
gains/losses recognized from adjustments to the fair value of the
assets held in the rabbi trust are recorded as compensation expense
in "Operating expenses" and "Corporate, general and administrative
expenses," and offset in "Other income, net."
|
CBIZ,
INC. SELECT CASH FLOW DATA (In
thousands)
|
|
|
|
Twelve Months Ended
December 31,
|
|
|
2022
|
|
2021
|
Net
income
|
|
$
105,354
|
|
$
70,887
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization expense
|
|
32,895
|
|
27,078
|
Gain on sale of
operations, net
|
|
(413)
|
|
(5,995)
|
Bad debt expense, net
of recoveries
|
|
1,173
|
|
3,054
|
Adjustments to
contingent earnout liability, net
|
|
2,435
|
|
2,367
|
Stock-based
compensation expense
|
|
14,689
|
|
11,407
|
Other noncash
adjustments
|
|
12,060
|
|
9,108
|
Net income, after
adjustments to reconcile net income to net cash provided by
operating activities
|
|
168,193
|
|
117,906
|
Changes in assets and
liabilities, net of acquisitions and divestitures
|
|
(42,043)
|
|
13,272
|
Operating cash flows
provided by continuing operations
|
|
126,150
|
|
131,178
|
Operating cash used in
discontinued operations
|
|
(18)
|
|
(24)
|
Net cash provided by
operating activities
|
|
126,132
|
|
131,154
|
Net cash used in
investing activities
|
|
(99,118)
|
|
(82,010)
|
Net cash used in
financing activities
|
|
(17,343)
|
|
(69,005)
|
Net increase
(decrease) in cash, cash equivalents and restricted
cash
|
|
9,671
|
|
(19,861)
|
Cash, cash equivalents
and restricted cash at beginning of year
|
|
$
150,474
|
|
$
170,335
|
Cash, cash
equivalents and restricted cash at end of period
|
|
$
160,145
|
|
$
150,474
|
|
|
|
|
|
Reconciliation of
cash, cash equivalents and restricted cash to the
consolidated balance sheet:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
4,697
|
|
$
1,997
|
Restricted
cash
|
|
28,487
|
|
30,383
|
Cash equivalents
included in funds held for clients
|
|
126,961
|
|
118,094
|
Total cash, cash
equivalents and restricted cash
|
|
$
160,145
|
|
$
150,474
|
CBIZ,
INC. SELECT FINANCIAL DATA AND RATIOS (In
thousands)
|
|
|
|
December 31,
2022
|
|
December 31,
2021
|
Cash and cash
equivalents
|
|
4,697
|
|
1,997
|
Restricted
cash
|
|
28,487
|
|
30,383
|
Accounts receivable,
net
|
|
334,498
|
|
242,168
|
Current assets before
funds held for clients
|
|
397,113
|
|
293,765
|
Funds held for
clients
|
|
171,313
|
|
157,909
|
Goodwill and other
intangible assets, net
|
|
951,702
|
|
840,783
|
|
|
|
|
|
Total
assets
|
|
1,879,124
|
|
1,627,934
|
|
|
|
|
|
Current liabilities
before client fund obligations
|
|
338,940
|
|
265,174
|
Client fund
obligations
|
|
173,467
|
|
158,115
|
Total long-term
debt
|
|
263,654
|
|
154,851
|
|
|
|
|
|
Total
liabilities
|
|
1,165,672
|
|
923,386
|
|
|
|
|
|
Treasury
stock
|
|
(824,778)
|
|
(694,716)
|
|
|
|
|
|
Total stockholders'
equity
|
|
713,452
|
|
704,548
|
|
|
|
|
|
Debt to
equity
|
|
37.0 %
|
|
22.0 %
|
Days sales outstanding
(DSO) - continuing operations (1)
|
|
74
|
|
71
|
|
|
|
|
|
Shares
outstanding
|
|
50,180
|
|
52,038
|
Basic weighted average
common shares outstanding
|
|
51,502
|
|
52,637
|
Diluted weighted
average common shares outstanding
|
|
52,388
|
|
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.
|
CBIZ,
INC. GAAP RECONCILIATION (Loss) Income from
Continuing Operations to Adjusted
EBITDA (1) (In
thousands)
|
|
|
Three Months Ended
December
31,
|
|
Twelve Months Ended
December
31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
(Loss) Income from
continuing operations
|
$
(11,493)
|
|
$
(9,613)
|
|
$
105,372
|
|
$
70,911
|
Interest
expense
|
2,830
|
|
1,016
|
|
8,039
|
|
3,868
|
Income tax (benefit)
expense
|
(4,953)
|
|
(3,971)
|
|
36,121
|
|
22,129
|
(Gain) loss on sale of
operations, net
|
(102)
|
|
390
|
|
(413)
|
|
(5,995)
|
Gain on sale of assets,
net (2)
|
—
|
|
—
|
|
(2,391)
|
|
—
|
Legal settlement,
net
|
—
|
|
—
|
|
—
|
|
30,468
|
Transaction costs
related to Marks Paneth (3)
|
—
|
|
—
|
|
1,329
|
|
—
|
Integration and
retention costs related to Marks Paneth (3)
|
1,179
|
|
—
|
|
9,191
|
|
—
|
Depreciation
|
2,853
|
|
2,771
|
|
11,231
|
|
10,781
|
Amortization
|
5,335
|
|
4,386
|
|
21,664
|
|
16,297
|
Adjusted
EBITDA
|
$
(4,351)
|
|
$
(5,021)
|
|
$
190,143
|
|
$
148,459
|
(1)
|
CBIZ reports its
financial results in accordance with GAAP. This table reconciles
Adjusted EBITDA to the most directly comparable GAAP financial
measure, "(Loss) 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)
|
This gain is related to
a sale of a book of business in CBIZ's property and casualty line
of service, and is recorded in Other income (expense),
net.
|
|
|
(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.
|
CBIZ,
INC. GAAP RECONCILIATION (Loss) Income and
Diluted Earnings Per Share ("EPS") from Continuing Operations to
Adjusted (Loss) Income
from Continuing Operations and
EPS(1) (In thousands)
|
|
|
Three Months Ended
December
31, 2022
|
|
Three Months
Ended
December 31, 2021
|
|
Amounts
|
|
EPS
|
|
Amounts
|
|
EPS
|
Loss from continuing
operations
|
$
(11,493)
|
|
$
(0.23)
|
|
$
(9,613)
|
|
$
(0.19)
|
Adjustments:
|
|
|
|
|
|
|
|
Integration and
retention costs related to Marks Paneth (4)
|
1,179
|
|
0.02
|
|
—
|
|
—
|
Income tax effect
related to adjustments
|
(355)
|
|
—
|
|
—
|
|
—
|
Adjusted loss from
continuing operations
|
$
(10,669)
|
|
$
(0.21)
|
|
$
(9,613)
|
|
$
(0.19)
|
|
Twelve Months Ended
December
31, 2022
|
|
Twelve Months
Ended
December 31, 2021
|
|
Amounts
|
|
EPS
|
|
Amounts
|
|
EPS
|
Income from
continuing operations
|
$ 105,372
|
|
$
2.01
|
|
$
70,911
|
|
$
1.32
|
Adjustments:
|
|
|
|
|
|
|
|
Gain on sale of
operations, net (2)
|
—
|
|
—
|
|
(6,311)
|
|
(0.12)
|
Gain on sale of
assets, net (3)
|
(2,391)
|
|
(0.05)
|
|
—
|
|
—
|
Legal settlement,
net
|
—
|
|
—
|
|
30,468
|
|
0.57
|
Transaction costs
related to Marks Paneth (4)
|
1,329
|
|
0.03
|
|
—
|
|
—
|
Integration and
retention costs related to Marks Paneth (4)
|
9,191
|
|
0.18
|
|
—
|
|
—
|
Income tax effect
related to adjustments
|
(2,075)
|
|
(0.04)
|
|
(5,746)
|
|
(0.11)
|
Adjusted income from
continuing operations
|
$ 111,426
|
|
$
2.13
|
|
$
89,322
|
|
$
1.66
|
(1)
|
CBIZ reports its
financial results in accordance with GAAP. This table reconciles
Adjusted (Loss) Income and Adjusted EPS to the most directly
comparable GAAP financial measures, "(Loss) Income from continuing
operations" and "Diluted earnings per share from continuing
operations." Adjusted (Loss) 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
(Loss) Income and Adjusted EPS, 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)
|
This gain related to a
one-time non-recurring gain from the sale of an operation in CBIZ's
Benefit and Insurance Services practice group.
|
(3)
|
This gain is related to
a sale of a book of business in CBIZ's property and casualty line
of service, and is recorded in Other income (expense),
net.
|
(4)
|
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 2023 EPS
from Continuing Operations Guidance to Full Year 2023 Adjusted
Diluted EPS (In thousands)
|
|
|
Full Year 2023
Guidance
|
|
Low
|
|
High
|
Diluted EPS - GAAP
Guidance
|
$
2.31
|
|
$
2.36
|
Integration cost
related to Somerset acquisition
|
0.05
|
|
0.05
|
Adjusted Diluted EPS
Guidance
|
$
2.36
|
|
$
2.41
|
|
|
|
|
GAAP Diluted EPS for
2022
|
$
2.01
|
|
$
2.01
|
Adjusted Diluted EPS
for 2022
|
$
2.13
|
|
$
2.13
|
GAAP Diluted EPS
Range
|
15 %
|
|
17 %
|
Adjusted Diluted EPS
Range
|
11 %
|
|
13 %
|
View original
content:https://www.prnewswire.com/news-releases/cbiz-reports-fourth-quarter-and-full-year-2022-results-301748206.html
SOURCE CBIZ, Inc.