THIRD-QUARTER HIGHLIGHTS:
- TOTAL REVENUE UP 28.5%; SAME-UNIT REVENUE UP 12.3%
- GAAP EPS UP 29.3%; ADJUSTED EPS UP 24.4%
- INCOME FROM CONTINUING OPERATIONS UP 26.6%; ADJUSTED EBITDA UP
23.1%
NINE-MONTH HIGHLIGHTS:
- TOTAL REVENUE UP 29.6%; SAME-UNIT REVENUE UP 11.1%
- GAAP EPS UP 48.0%; ADJUSTED EPS UP 25.5%
- INCOME FROM CONTINUING OPERATIONS UP 45.1%; ADJUSTED EBITDA UP
26.7%
2022 OUTLOOK:
- TOTAL REVENUE GROWTH INCREASED TO 26% - 28%
- GAAP EPS INCREASED TO 48% - 51%
- ADJUSTED EPS INCREASED TO 26% - 28%
CLEVELAND, Oct. 27,
2022 /PRNewswire/ -- CBIZ, Inc., (NYSE: CBZ) ("CBIZ"
or the "Company"), a leading provider of financial, insurance and
advisory services, today announced results for the third quarter
ended September 30, 2022.
For the 2022 third quarter, CBIZ recorded revenue of
$363.3 million, an increase of
$80.5 million, or 28.5%, compared
with $282.7 million reported for
the same period in 2021. Acquired operations, net of divestitures,
contributed $45.7 million, or 16.2%,
to third-quarter 2022 revenue growth. Same-unit revenue increased
by $34.8 million, or 12.3%, for the
quarter, compared with the same period a year ago. Income from
continuing operations was $27.5
million, or $0.53 per diluted
share, compared with $21.7 million,
or $0.41 per diluted share, for the
same period a year ago.
Adjusted income from continuing operations was $26.5 million, or $0.51 per diluted share, compared with
$21.7 million, or $0.41 per diluted share, for the same period a
year ago. Adjusted EBITDA for the third quarter was $45.9 million, compared with $37.3 million for the same period in 2021.
For the nine months ended September 30, 2022, CBIZ recorded
revenue of $1,116.9 million, an
increase of $254.8 million, or 29.6%,
over the $862.1 million recorded
for the same period in 2021. Acquisitions, net of divestitures,
contributed $159.5 million, or 18.5%,
to revenue growth in the nine months ended September 30, 2022.
Same-unit revenue increased by $95.3
million, or 11.1%, compared with the same period a year ago.
Income from continuing operations was $116.9
million, or $2.22 per diluted
share, for the nine months ended September 30, 2022, compared
with $80.5 million, or $1.50 per diluted share, for the same period a
year ago.
Adjusted income from continuing operations was $121.8 million, or $2.31 per diluted share, for the nine months
ended September 30, 2022, compared with $98.7 million, or $1.84 per diluted share, for the same period a
year ago. Adjusted EBITDA for the nine months was $194.5 million, compared with $153.5 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 $6.4
million non-recurring gain on sale of operations. These
items were eliminated to arrive at Adjusted earnings per diluted
share for the nine months ended September
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 the tables included in this release.
During the nine months ended September
30, 2022, the Company repurchased approximately 1.6 million
shares of its common stock on the open market. Between October 1, 2022, and October 26, 2022, the Company repurchased an
additional 397,000 shares. The balance outstanding on the Company's
unsecured credit facility on September 30, 2022, was
$271.1 million with $310.9 million of unused borrowing capacity.
Jerry Grisko, CBIZ President and
Chief Executive Officer, said, "We are pleased that our very strong
performance for the first half this year has continued through the
third quarter. With same unit revenue up 11.1% year-to-date, we are
seeing strong organic revenue growth from every major service line
across our business. Our recent acquisitions are also significant
contributors to our results this year. Given our positive
performance to date and our outlook for the remainder of the year,
we are raising our full-year 2022 guidance of revenue growth to
within a range of 26% and 28% and growth in adjusted earnings per
share to within a range of 26% and 28%."
2022 Outlook
- The Company increased its revenue growth expectations to within
a range of 26% to 28% over the prior year, up from previous
guidance of 23% to 25% in revenue growth.
- On a GAAP basis, the Company expects full-year fully diluted
earnings per share from continuing operations to grow within a
range of 48% to 51% per share over the $1.32 per share reported in 2021, up from
previous guidance of 45% to 48% growth per share.
- The Company expects Adjusted fully diluted earnings per share
from continuing operations to grow within a range of 26% to 28%
over the Adjusted $1.66 reported for
2021, up from previous guidance of a 25% to 27% increase per share.
A schedule reconciling GAAP Diluted EPS to Non-GAAP Adjusted
Diluted EPS is attached.
- 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.
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/10172401/f4d7c90ec1.
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
SEPTEMBER 30, 2022 AND 2021
|
(In thousands,
except percentages and per share data)
|
|
|
|
Three Months Ended
September 30,
|
|
|
2022
|
|
%
|
|
2021
|
|
%
|
Revenue
|
|
$
363,262
|
|
100.0 %
|
|
$
282,719
|
|
100.0 %
|
Operating expenses
(1)
|
|
306,017
|
|
84.2
|
|
238,328
|
|
84.3
|
Gross
margin
|
|
57,245
|
|
15.8
|
|
44,391
|
|
15.7
|
Corporate general and
administrative expenses (1)
|
|
15,893
|
|
4.4
|
|
13,035
|
|
4.6
|
Operating
income
|
|
41,352
|
|
11.4
|
|
31,356
|
|
11.1
|
Other (expense)
income:
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(2,305)
|
|
(0.6)
|
|
(1,016)
|
|
(0.4)
|
Gain on sale of
operations, net
|
|
176
|
|
—
|
|
—
|
|
—
|
Other expense, net
(1) (2)
|
|
(2,618)
|
|
(0.7)
|
|
(1,133)
|
|
(0.4)
|
Total other expense,
net
|
|
(4,747)
|
|
(1.3)
|
|
(2,149)
|
|
(0.8)
|
Income from
continuing operations before income tax expense
|
|
36,605
|
|
10.1
|
|
29,207
|
|
10.3
|
Income tax
expense
|
|
9,131
|
|
|
|
7,512
|
|
|
Income from
continuing operations
|
|
27,474
|
|
7.6
|
|
21,695
|
|
7.7
|
Loss from operations of
discontinued businesses, net of tax
|
|
(4)
|
|
|
|
(4)
|
|
|
Net
Income
|
|
$
27,470
|
|
7.6 %
|
|
$
21,691
|
|
7.7 %
|
|
|
|
|
|
|
|
|
|
Diluted income per
share:
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$ 0.53
|
|
|
|
$ 0.41
|
|
|
Discontinued
operations
|
|
—
|
|
|
|
—
|
|
|
Net
income
|
|
$
0.53
|
|
|
|
$
0.41
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average common shares outstanding
|
|
52,238
|
|
|
|
53,226
|
|
|
Other data from
continuing operations:
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(3)
|
|
$
45,865
|
|
|
|
$
37,268
|
|
|
Adjusted EPS
(3)
|
|
$ 0.51
|
|
|
|
$ 0.41
|
|
|
|
|
(1)
|
CBIZ sponsors a
deferred compensation plan, under which a CBIZ employee's
compensation deferral is held in a rabbi trust and invested
accordingly as directed by the employee. Income and expenses
related to the deferred compensation plan are included in
"Operating expenses" and "Corporate general and administrative
expenses," and are directly offset by deferred compensation gains
or losses in "Other expense, net." The deferred compensation plan
has no impact on "Income from continuing operations before income
tax expense."
|
|
|
|
Income and expenses
related to the deferred compensation plan for the three months
ended September 30, 2022, and 2021 are as follows (in
thousands):
|
|
|
Three Months Ended
September 30,
|
|
|
2022
|
|
% of
Revenue
|
|
2021
|
|
% of
Revenue
|
Operating
income
|
|
$ (3,995)
|
|
(1.1) %
|
|
$
(212)
|
|
(0.1) %
|
Corporate general and
administrative income
|
|
(697)
|
|
(0.2) %
|
|
(86)
|
|
— %
|
Other expense,
net
|
|
(4,692)
|
|
(1.3) %
|
|
(298)
|
|
(0.1) %
|
|
|
|
Excluding the impact of
the above-mentioned income and expenses related to the deferred
compensation plan, the operating results for the three months ended
September 30, 2022, and 2021 are as follows (in
thousands):
|
|
Three Months Ended
September 30,
|
|
2022
|
|
2021
|
|
As
Reported
|
|
Deferred
Compensation
Plan
|
|
Adjusted
|
|
% of
Revenue
|
|
As
Reported
|
|
Deferred
Compensation
Plan
|
|
Adjusted
|
|
% of
Revenue
|
Gross margin
|
$
57,245
|
|
$ (3,995)
|
|
$
53,250
|
|
14.7 %
|
|
$
44,391
|
|
$
(212)
|
|
$
44,179
|
|
15.6 %
|
Operating
income
|
41,352
|
|
(4,692)
|
|
36,660
|
|
10.1 %
|
|
31,356
|
|
(298)
|
|
31,058
|
|
11.0 %
|
Other (expense) income,
net
|
(2,618)
|
|
4,692
|
|
2,074
|
|
0.6 %
|
|
(1,133)
|
|
298
|
|
(835)
|
|
(0.3) %
|
Income from continuing
operations
before income tax expense
|
36,605
|
|
—
|
|
36,605
|
|
10.1 %
|
|
29,207
|
|
—
|
|
29,207
|
|
10.3 %
|
|
|
(2)
|
Included in "Other
expense, net" for the three months ended September 30, 2022 and
2021, is expense of $0.4 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)
|
NINE MONTHS ENDED
SEPTEMBER 30, 2022 AND 2021
|
(In thousands,
except percentages and per share data)
|
|
|
|
Nine Months Ended
September 30,
|
|
|
2022
|
|
%
|
|
2021
|
|
%
|
Revenue
|
|
$
1,116,936
|
|
100.0 %
|
|
$
862,097
|
|
100.0 %
|
Operating expenses
(1)
|
|
886,052
|
|
79.3
|
|
699,233
|
|
81.1
|
Gross
margin
|
|
230,884
|
|
20.7
|
|
162,864
|
|
18.9
|
Corporate general and
administrative expenses (1)
|
|
43,128
|
|
3.9
|
|
41,334
|
|
4.8
|
Legal settlement,
net
|
|
—
|
|
—
|
|
30,468
|
|
3.5
|
Operating
income
|
|
187,756
|
|
16.8
|
|
91,062
|
|
10.6
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(5,209)
|
|
(0.5)
|
|
(2,852)
|
|
(0.3)
|
Gain on sale of
operations, net
|
|
311
|
|
—
|
|
6,385
|
|
0.7
|
Other (expense) income,
net (1) (2)
|
|
(24,919)
|
|
(2.2)
|
|
12,029
|
|
1.4
|
Total other (expense)
income, net
|
|
(29,817)
|
|
(2.7)
|
|
15,562
|
|
1.8
|
Income from
continuing operations before income tax expense
|
|
157,939
|
|
14.1
|
|
106,624
|
|
12.4
|
Income tax
expense
|
|
41,074
|
|
|
|
26,100
|
|
|
Income from
continuing operations
|
|
116,865
|
|
10.5
|
|
80,524
|
|
9.3
|
Loss from operations of
discontinued businesses, net of tax
|
|
(13)
|
|
|
|
(17)
|
|
|
Net
income
|
|
$
116,852
|
|
10.5 %
|
|
$
80,507
|
|
9.3 %
|
|
|
|
|
|
|
|
|
|
Diluted income per
share:
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
2.22
|
|
|
|
$ 1.50
|
|
|
Discontinued
operations
|
|
—
|
|
|
|
—
|
|
|
Net
income
|
|
$
2.22
|
|
|
|
$
1.50
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average common shares outstanding
|
|
52,720
|
|
|
|
53,796
|
|
|
Other data from
continuing operations:
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(3)
|
|
$
194,494
|
|
|
|
$ 153,480
|
|
|
Adjusted EPS
(3)
|
|
$
2.31
|
|
|
|
$ 1.84
|
|
|
|
|
(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 nine months ended
September 30, 2022, and 2021 are as follows (in
thousands):
|
|
|
Nine Months Ended
September 30,
|
|
|
2022
|
|
% of
Revenue
|
|
2021
|
|
% of
Revenue
|
Operating (income)
expenses
|
|
$
(23,000)
|
|
(2.1) %
|
|
$ 11,165
|
|
1.3 %
|
Corporate general and
administrative (income) expenses
|
|
(3,319)
|
|
(0.3) %
|
|
1,260
|
|
0.1 %
|
Other (expense) income,
net
|
|
(26,319)
|
|
(2.4) %
|
|
12,425
|
|
1.4 %
|
|
|
|
Excluding the impact of
the above-mentioned income and expenses related to the deferred
compensation plan, the operating results for the nine months ended
September 30, 2022, and 2021 are as follows (in
thousands):
|
|
Nine Months Ended
September 30,
|
|
2022
|
|
2021
|
|
As
Reported
|
|
Deferred
Compensation
Plan
|
|
Adjusted
|
|
% of
Revenue
|
|
As
Reported
|
|
Deferred
Compensation
Plan
|
|
Adjusted
|
|
% of
Revenue
|
Gross margin
|
$ 230,884
|
|
$
(23,000)
|
|
$ 207,884
|
|
18.6 %
|
|
$ 162,864
|
|
$ 11,165
|
|
$ 174,029
|
|
20.2 %
|
Operating
income
|
187,756
|
|
(26,319)
|
|
161,437
|
|
14.5 %
|
|
91,062
|
|
12,425
|
|
103,487
|
|
12.0 %
|
Other (expense) income,
net
|
(24,919)
|
|
26,319
|
|
1,400
|
|
0.1 %
|
|
12,029
|
|
(12,425)
|
|
(396)
|
|
— %
|
Income from continuing
operations
before income tax expense
|
157,939
|
|
—
|
|
157,939
|
|
14.1 %
|
|
106,624
|
|
—
|
|
106,624
|
|
12.4 %
|
|
|
(2)
|
Included in "Other
(expense) income, net" for the nine months ended September 30, 2022
and 2021, is expense of $1.9 million and $1.6 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
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Revenue
|
|
|
|
|
|
|
|
|
Financial
Services
|
|
$ 259,998
|
|
$ 187,232
|
|
$ 808,052
|
|
$ 577,970
|
Benefits and Insurance
Services
|
|
92,067
|
|
85,797
|
|
276,261
|
|
255,656
|
National
Practices
|
|
11,197
|
|
9,690
|
|
32,623
|
|
28,471
|
Total
|
|
$
363,262
|
|
$
282,719
|
|
$
1,116,936
|
|
$
862,097
|
|
|
|
|
|
|
|
|
|
Gross
Margin
|
|
|
|
|
|
|
|
|
Financial
Services
|
|
$
39,661
|
|
$
31,054
|
|
$ 168,272
|
|
$ 129,126
|
Benefits and Insurance
Services
|
|
18,746
|
|
16,758
|
|
55,263
|
|
51,908
|
National
Practices
|
|
1,454
|
|
1,176
|
|
3,405
|
|
2,929
|
Operating expenses -
unallocated (1):
|
|
|
|
|
|
|
|
|
Other
expense
|
|
(6,611)
|
|
(4,809)
|
|
(19,056)
|
|
(9,934)
|
Deferred
compensation
|
|
3,995
|
|
212
|
|
23,000
|
|
(11,165)
|
Total
|
|
$
57,245
|
|
$
44,391
|
|
$
230,884
|
|
$
162,864
|
|
|
(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)
|
|
|
|
Nine Months Ended
September 30,
|
|
|
2022
|
|
2021
|
Net
income
|
|
$
116,852
|
|
$
80,507
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization expense
|
|
24,707
|
|
19,921
|
Gain on sale of
operations, net
|
|
(311)
|
|
(6,385)
|
Bad debt expense, net
of recoveries
|
|
1,295
|
|
562
|
Adjustments to
contingent earnout liability, net
|
|
1,917
|
|
1,599
|
Stock-based
compensation expense
|
|
11,987
|
|
8,359
|
Other noncash
adjustments
|
|
3,607
|
|
6,768
|
Net income, after
adjustments to reconcile net income to net cash provided by
operating activities
|
|
160,054
|
|
111,331
|
Changes in assets and
liabilities, net of acquisitions and divestitures
|
|
(99,982)
|
|
(30,367)
|
Operating cash flows
provided by continuing operations
|
|
60,072
|
|
80,964
|
Operating cash used in
discontinued operations
|
|
(13)
|
|
(18)
|
Net cash provided by
operating activities
|
|
60,059
|
|
80,946
|
Net cash used in
investing activities
|
|
(95,550)
|
|
(70,728)
|
Net cash provided by
financing activities
|
|
6,025
|
|
1,678
|
Net (decrease)
increase in cash, cash equivalents and restricted
cash
|
|
(29,466)
|
|
11,896
|
Cash, cash equivalents
and restricted cash at beginning of year
|
|
$
150,474
|
|
$
170,335
|
Cash, cash
equivalents and restricted cash at end of period
|
|
$
121,008
|
|
$
182,231
|
|
|
|
|
|
Reconciliation of
cash, cash equivalents and restricted cash to the consolidated
balance sheet:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
2,040
|
|
$
2,749
|
Restricted
cash
|
|
39,555
|
|
37,320
|
Cash equivalents
included in funds held for clients
|
|
79,413
|
|
142,162
|
Total cash, cash
equivalents and restricted cash
|
|
$
121,008
|
|
$
182,231
|
CBIZ,
INC.
|
SELECT FINANCIAL
DATA AND RATIOS (UNAUDITED)
|
(In
thousands)
|
|
|
|
September 30,
2022
|
|
December 31,
2021
|
Cash and cash
equivalents
|
|
2,040
|
|
1,997
|
Restricted
cash
|
|
39,555
|
|
30,383
|
Accounts receivable,
net
|
|
398,970
|
|
242,168
|
Current assets before
funds held for clients
|
|
457,630
|
|
293,765
|
Funds held for
clients
|
|
125,451
|
|
157,909
|
Goodwill and other
intangible assets, net
|
|
957,186
|
|
840,783
|
|
|
|
|
|
Total
assets
|
|
1,899,618
|
|
1,627,934
|
|
|
|
|
|
Current liabilities
before client fund obligations
|
|
330,513
|
|
265,174
|
Client fund
obligations
|
|
128,091
|
|
158,115
|
Total long-term debt,
net
|
|
268,936
|
|
154,851
|
|
|
|
|
|
Total
liabilities
|
|
1,125,493
|
|
923,386
|
|
|
|
|
|
Treasury
stock
|
|
(769,981)
|
|
(694,716)
|
|
|
|
|
|
Total stockholders'
equity
|
|
774,125
|
|
704,548
|
|
|
|
|
|
Debt to
equity
|
|
34.7 %
|
|
22.0 %
|
Days sales outstanding
(DSO) - continuing operations (1)
|
|
93
|
|
71
|
|
|
|
|
|
Shares
outstanding
|
|
51,181
|
|
52,038
|
Basic weighted average
common shares outstanding
|
|
51,827
|
|
52,637
|
Diluted weighted
average common shares outstanding
|
|
52,720
|
|
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
September 30, 2021 was 88.
|
CBIZ,
INC.
|
GAAP
RECONCILIATION
|
Income from
Continuing Operations to Adjusted
EBITDA (1)
|
(In
thousands)
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Income from
continuing operations
|
|
$
27,474
|
|
$
21,695
|
|
$
116,865
|
|
$
80,524
|
Interest
expense
|
|
2,305
|
|
1,016
|
|
5,209
|
|
2,852
|
Income tax
expense
|
|
9,131
|
|
7,512
|
|
41,074
|
|
26,100
|
Gain on sale of
operations, net
|
|
(176)
|
|
—
|
|
(311)
|
|
(6,385)
|
Gain on sale of assets,
net
|
|
(2,391)
|
|
—
|
|
(2,391)
|
|
—
|
Legal settlement,
net
|
|
—
|
|
—
|
|
—
|
|
30,468
|
Transaction costs
related to Marks Paneth (2)
|
|
—
|
|
—
|
|
1,329
|
|
—
|
Integration &
retention costs related to Marks Paneth (2)
|
|
1,280
|
|
—
|
|
8,012
|
|
—
|
Depreciation
|
|
2,771
|
|
2,808
|
|
8,378
|
|
8,010
|
Amortization
|
|
5,471
|
|
4,237
|
|
16,329
|
|
11,911
|
Adjusted
EBITDA
|
|
$
45,865
|
|
$
37,268
|
|
$
194,494
|
|
$
153,480
|
|
|
(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
September 30, 2022
|
|
Three Months Ended
September 30, 2021
|
|
Amounts
|
|
EPS
|
|
Amounts
|
|
EPS
|
Income from
continuing operations
|
$
27,474
|
|
$
0.53
|
|
$
21,695
|
|
$
0.41
|
Adjustments:
|
|
|
|
|
|
|
|
Gain on sale of
operations, net
|
(176)
|
|
—
|
|
—
|
|
—
|
Gain on sale of
assets, net
|
(2,391)
|
|
(0.05)
|
|
—
|
|
—
|
Integration &
retention costs related to Marks Paneth (2)
|
1,280
|
|
0.02
|
|
—
|
|
—
|
Income tax effect
related to adjustments
|
321
|
|
0.01
|
|
—
|
|
—
|
Adjusted income from
continuing operations
|
$
26,508
|
|
$
0.51
|
|
$
21,695
|
|
$
0.41
|
|
|
(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.
|
|
Nine Months Ended
September 30, 2022
|
|
Nine Months Ended
September 30, 2021
|
|
Amounts
|
|
EPS
|
|
Amounts
|
|
EPS
|
Income from
continuing operations
|
$
116,865
|
|
$
2.22
|
|
$
80,524
|
|
$
1.50
|
Adjustments:
|
|
|
|
|
|
|
|
Gain on sale of
operations, net
|
(311)
|
|
(0.01)
|
|
(6,385)
|
|
(0.12)
|
Gain on sale of
assets, net
|
(2,391)
|
|
(0.05)
|
|
—
|
|
—
|
Legal settlement,
net
|
—
|
|
—
|
|
30,468
|
|
0.57
|
Transaction costs
related to Marks Paneth (2)
|
1,329
|
|
0.03
|
|
—
|
|
—
|
Integration &
retention costs related to Marks Paneth (2)
|
8,012
|
|
0.15
|
|
—
|
|
—
|
Income tax effect
related to adjustments
|
(1,727)
|
|
(0.03)
|
|
(5,896)
|
|
(0.11)
|
Adjusted income from
continuing operations
|
$
121,777
|
|
$
2.31
|
|
$
98,711
|
|
$
1.84
|
|
|
(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
|
$
1.96
|
|
$
1.99
|
Transaction and
integration costs related to Marks Paneth (1)
|
0.16
|
|
0.16
|
Gain on sale of asset,
net
|
(0.03)
|
|
(0.03)
|
Adjusted Diluted EPS
Guidance
|
$
2.09
|
|
$
2.12
|
GAAP Diluted EPS for
2021
|
$
1.32
|
|
$
1.32
|
Adjusted Diluted EPS
for 2021 (2)
|
$
1.66
|
|
$
1.66
|
GAAP Diluted EPS
Range
|
48 %
|
|
51 %
|
Adjusted Diluted
EPS Range
|
26 %
|
|
28 %
|
|
|
(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-third-quarter-and-nine-month-2022-results-and-increases-full-year-2022-guidance-301660510.html
SOURCE CBIZ, Inc.