(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange On which registered | ||||||||||||
By: | /s/ Ware H. Grove | |||||||
Name: | Ware H. Grove | |||||||
Title: | Chief Financial Officer |
FOR IMMEDIATE RELEASE | CONTACT: | Ware Grove | |||||||||||||||
Chief Financial Officer | |||||||||||||||||
-or- | |||||||||||||||||
Lori Novickis | |||||||||||||||||
Director, Corporate Relations | |||||||||||||||||
CBIZ, Inc. | |||||||||||||||||
Cleveland, Ohio | |||||||||||||||||
(216) 447-9000 |
Three Months Ended June 30, | ||||||||||||||||||||||||||
2021 | % | 2020 | % | |||||||||||||||||||||||
Revenue | $ | 278,648 | 100.0 | % | $ | 236,943 | 100.0 | % | ||||||||||||||||||
Operating expenses (1) | 236,934 | 85.0 | 209,016 | 88.2 | ||||||||||||||||||||||
Gross margin | 41,714 | 15.0 | 27,927 | 11.8 | ||||||||||||||||||||||
Corporate general and administrative expenses (1) | 13,816 | 5.0 | 11,160 | 4.7 | ||||||||||||||||||||||
Legal settlement, net | 30,468 | 10.9 | — | — | ||||||||||||||||||||||
Operating (loss) income | (2,570) | (0.9) | 16,767 | 7.1 | ||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||
Interest expense | (959) | (0.3) | (2,074) | (0.9) | ||||||||||||||||||||||
Gain on sale of operations, net | 6,385 | 2.3 | 57 | — | ||||||||||||||||||||||
Other income, net (1) (2) | 8,373 | 3.0 | 13,336 | 5.6 | ||||||||||||||||||||||
Total other (expense) income, net | 13,799 | 5.0 | 11,319 | 4.7 | ||||||||||||||||||||||
Income from continuing operations before income tax expense | 11,229 | 4.1 | 28,086 | 11.8 | ||||||||||||||||||||||
Income tax expense | 2,616 | 6,607 | ||||||||||||||||||||||||
Income from continuing operations | 8,613 | 3.1 | 21,479 | 9.1 | ||||||||||||||||||||||
Loss from operations of discontinued businesses, net of tax | (6) | (11) | ||||||||||||||||||||||||
Net Income | $ | 8,607 | 3.1 | % | $ | 21,468 | 9.1 | % | ||||||||||||||||||
Diluted income per share: | ||||||||||||||||||||||||||
Continuing operations | $ | 0.16 | $ | 0.39 | ||||||||||||||||||||||
Discontinued operations | — | — | ||||||||||||||||||||||||
Net income | $ | 0.16 | $ | 0.39 | ||||||||||||||||||||||
Diluted weighted average common shares outstanding | 53,769 | 55,116 | ||||||||||||||||||||||||
Other data from continuing operations: | ||||||||||||||||||||||||||
Adjusted EBITDA (3) | $ | 42,895 | $ | 35,890 | ||||||||||||||||||||||
Adjusted EPS (3) | $ | 0.50 | $ | 0.39 | ||||||||||||||||||||||
Three Months Ended June 30, | ||||||||||||||||||||||||||
2021 | % of Revenue | 2020 | % of Revenue | |||||||||||||||||||||||
Operating expenses | $ | 6,761 | 2.4 | % | $ | 12,232 | 5.2 | % | ||||||||||||||||||
Corporate general and administrative expenses | $ | 850 | 0.3 | % | $ | 1,474 | 0.6 | % | ||||||||||||||||||
Other income (expense), net | $ | 7,611 | 2.7 | % | $ | 13,706 | 5.8 | % |
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
As Reported | Deferred Compensation Plan | Adjusted | % of Revenue | As Reported | Deferred Compensation Plan | Adjusted | % of Revenue | ||||||||||||||||||||||||||||||||||||||||
Gross margin | $ | 41,714 | $ | 6,761 | $ | 48,475 | 17.4 | % | $ | 27,927 | $ | 12,232 | $ | 40,159 | 16.9 | % | |||||||||||||||||||||||||||||||
Operating (loss) income | $ | (2,570) | $ | 7,611 | $ | 5,041 | 1.8 | % | $ | 16,767 | $ | 13,706 | $ | 30,473 | 12.9 | % | |||||||||||||||||||||||||||||||
Other income, net | $ | 8,373 | $ | (7,611) | $ | 762 | 0.3 | % | $ | 13,336 | $ | (13,706) | $ | (370) | (0.2) | % | |||||||||||||||||||||||||||||||
Income from continuing operations before income tax expense | $ | 11,229 | $ | — | $ | 11,229 | 4.0 | % | $ | 28,086 | $ | — | $ | 28,086 | 11.9 | % |
Six Months Ended June 30, | ||||||||||||||||||||||||||
2021 | % | 2020 | % | |||||||||||||||||||||||
Revenue | $ | 579,378 | 100.0 | % | $ | 514,398 | 100.0 | % | ||||||||||||||||||
Operating expenses (1) | 460,905 | 79.6 | 408,843 | 79.5 | ||||||||||||||||||||||
Gross margin | 118,473 | 20.4 | 105,555 | 20.5 | ||||||||||||||||||||||
Corporate general and administrative expenses (1) | 28,299 | 4.9 | 21,649 | 4.2 | ||||||||||||||||||||||
Legal settlement, net | 30,468 | 5.3 | — | — | ||||||||||||||||||||||
Operating income | 59,706 | 10.2 | 83,906 | 16.3 | ||||||||||||||||||||||
Other income: | ||||||||||||||||||||||||||
Interest expense | (1,836) | (0.3) | (3,193) | (0.6) | ||||||||||||||||||||||
Gain on sale of operations, net | 6,385 | 1.1 | 152 | — | ||||||||||||||||||||||
Other income (expense), net (1) (2) | 13,162 | 2.3 | (2,464) | (0.5) | ||||||||||||||||||||||
Total other expense, net | 17,711 | 3.1 | (5,505) | (1.1) | ||||||||||||||||||||||
Income from continuing operations before income tax benefit | 77,417 | 13.3 | 78,401 | 15.2 | ||||||||||||||||||||||
Income tax expense | 18,588 | 20,060 | ||||||||||||||||||||||||
Income from continuing operations | 58,829 | 10.2 | 58,341 | 11.3 | ||||||||||||||||||||||
Loss from operations of discontinued businesses, net of tax | (13) | (25) | ||||||||||||||||||||||||
Net income | $ | 58,816 | 10.2 | % | $ | 58,316 | 11.3 | % | ||||||||||||||||||
Diluted income per share: | ||||||||||||||||||||||||||
Continuing operations | $ | 1.09 | $ | 1.05 | ||||||||||||||||||||||
Discontinued operations | — | — | ||||||||||||||||||||||||
Net income | $ | 1.09 | $ | 1.05 | ||||||||||||||||||||||
Diluted weighted average common shares outstanding | 54,109 | 55,515 | ||||||||||||||||||||||||
Other data from continuing operations: | ||||||||||||||||||||||||||
Adjusted EBITDA (3) | $ | 116,212 | $ | 92,933 | ||||||||||||||||||||||
Adjusted EPS (3) | $ | 1.43 | $ | 1.05 | ||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||||
2021 | % of Revenue | 2020 | % of Revenue | |||||||||||||||||||||||
Operating expenses | $ | 11,377 | 2.0 | % | $ | (2,568) | (0.5) | % | ||||||||||||||||||
Corporate general and administrative expenses | $ | 1,346 | 0.2 | % | $ | (330) | (0.1) | % | ||||||||||||||||||
Other income (expense), net | $ | 12,723 | 2.2 | % | $ | (2,898) | (0.6) | % |
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
As Reported | Deferred Compensation Plan | Adjusted | % of Revenue | As Reported | Deferred Compensation Plan | Adjusted | % of Revenue | ||||||||||||||||||||||||||||||||||||||||
Gross margin | $ | 118,473 | $ | 11,377 | $ | 129,850 | 22.4 | % | $ | 105,555 | $ | (2,568) | $ | 102,987 | 20.0 | % | |||||||||||||||||||||||||||||||
Operating income | $ | 59,706 | $ | 12,723 | $ | 72,429 | 12.5 | % | $ | 83,906 | $ | (2,898) | $ | 81,008 | 15.7 | % | |||||||||||||||||||||||||||||||
Other income (expense), net | $ | 13,162 | $ | (12,723) | $ | 439 | 0.1 | % | $ | (2,464) | $ | 2,898 | $ | 434 | 0.1 | % | |||||||||||||||||||||||||||||||
Income from continuing operations before income tax expense | $ | 77,417 | $ | — | $ | 77,417 | 13.4 | % | $ | 78,401 | $ | — | $ | 78,401 | 15.2 | % |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||
Financial Services | $ | 186,589 | $ | 154,083 | $ | 390,738 | $ | 342,860 | ||||||||||||||||||
Benefits and Insurance Services | 82,620 | 73,940 | 169,859 | 153,552 | ||||||||||||||||||||||
National Practices | 9,439 | 8,920 | 18,781 | 17,986 | ||||||||||||||||||||||
Total | $ | 278,648 | $ | 236,943 | $ | 579,378 | $ | 514,398 | ||||||||||||||||||
Gross Margin | ||||||||||||||||||||||||||
Financial Services | $ | 35,669 | $ | 26,666 | $ | 98,072 | $ | 76,845 | ||||||||||||||||||
Benefits and Insurance Services | 14,844 | 12,657 | 35,150 | 27,046 | ||||||||||||||||||||||
National Practices | 952 | 930 | 1,753 | 1,713 | ||||||||||||||||||||||
Operating expenses - unallocated (1): | ||||||||||||||||||||||||||
Other expense | (2,990) | (94) | (5,125) | (2,617) | ||||||||||||||||||||||
Deferred compensation | (6,761) | (12,232) | (11,377) | 2,568 | ||||||||||||||||||||||
Total | $ | 41,714 | $ | 27,927 | $ | 118,473 | $ | 105,555 | ||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||
2021 | 2020 | |||||||||||||
Net income | $ | 58,816 | $ | 58,316 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation and amortization expense | 12,876 | 11,491 | ||||||||||||
Gain on sale of operations, net | (6,385) | (152) | ||||||||||||
Bad debt expense, net of recoveries | 265 | 3,234 | ||||||||||||
Adjustments to contingent earnout liability, net | 753 | (155) | ||||||||||||
Stock-based compensation expense | 5,454 | 4,280 | ||||||||||||
Other noncash adjustments | 1,514 | (160) | ||||||||||||
Net income, after adjustments to reconcile net income to net cash provided by operating activities | 73,293 | 76,854 | ||||||||||||
Changes in assets and liabilities, net of acquisitions and divestitures | (6,986) | (21,286) | ||||||||||||
Operating cash flows provided by continuing operations | 66,307 | 55,568 | ||||||||||||
Operating cash used in discontinued operations | (13) | (45) | ||||||||||||
Net cash provided by operating activities | 66,294 | 55,523 | ||||||||||||
Net cash (used in) provided by investing activities | (40,137) | 12,807 | ||||||||||||
Net cash used in financing activities | (42,582) | (70,560) | ||||||||||||
Net decrease in cash, cash equivalents and restricted cash | (16,425) | (2,230) | ||||||||||||
Cash, cash equivalents and restricted cash at beginning of year | $ | 170,335 | $ | 146,505 | ||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 153,910 | $ | 144,275 | ||||||||||
Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheet: | ||||||||||||||
Cash and cash equivalents | $ | 4,677 | $ | 9,620 | ||||||||||
Restricted cash | 39,268 | 42,411 | ||||||||||||
Cash equivalents included in funds held for clients | 109,965 | 92,244 | ||||||||||||
Total cash, cash equivalents and restricted cash | $ | 153,910 | $ | 144,275 |
June 30, 2021 | December 31, 2020 | |||||||||||||
Cash and cash equivalents | 4,677 | 4,652 | ||||||||||||
Restricted cash | 39,268 | 23,951 | ||||||||||||
Accounts receivable, net | 292,496 | 216,175 | ||||||||||||
Current assets before funds held for clients | 369,751 | 268,991 | ||||||||||||
Funds held for clients | 139,420 | 167,440 | ||||||||||||
Goodwill and other intangible assets, net | 807,939 | 756,750 | ||||||||||||
Total assets | 1,656,628 | 1,513,754 | ||||||||||||
Current liabilities before client fund obligations | 284,598 | 211,285 | ||||||||||||
Client fund obligations | 139,166 | 166,989 | ||||||||||||
Total long-term debt | 162,672 | 107,192 | ||||||||||||
Total liabilities | 944,296 | 811,134 | ||||||||||||
Treasury stock | (661,772) | (595,297) | ||||||||||||
Total stockholders' equity | 712,332 | 702,620 | ||||||||||||
Debt to equity | 22.8 | % | 15.3 | % | ||||||||||
Days sales outstanding (DSO) - continuing operations (1) | 84 | 72 | ||||||||||||
Shares outstanding | 52,719 | 54,099 | ||||||||||||
Basic weighted average common shares outstanding | 53,119 | 54,288 | ||||||||||||
Diluted weighted average common shares outstanding | 54,109 | 55,359 | ||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Income from continuing operations | $ | 8,613 | $ | 21,479 | $ | 58,829 | $ | 58,341 | |||||||||||||||
Interest expense | 959 | 2,074 | 1,836 | 3,193 | |||||||||||||||||||
Income tax expense | 2,616 | 6,607 | 18,588 | 20,060 | |||||||||||||||||||
Gain on sale of operations, net | (6,385) | (57) | (6,385) | (152) | |||||||||||||||||||
Legal settlement, net | 30,468 | — | 30,468 | — | |||||||||||||||||||
Depreciation | 2,649 | 2,357 | 5,202 | 4,640 | |||||||||||||||||||
Amortization | 3,975 | 3,430 | 7,674 | 6,851 | |||||||||||||||||||
Adjusted EBITDA | $ | 42,895 | $ | 35,890 | $ | 116,212 | $ | 92,933 | |||||||||||||||
Three Months Ended June 30, 2021 | Six Months Ended June 30, 2021 | ||||||||||||||||||||||
Amounts | EPS | Amounts | EPS | ||||||||||||||||||||
Income from continuing operations | $ | 8,613 | $ | 0.16 | $ | 58,829 | $ | 1.09 | |||||||||||||||
Adjustments: | |||||||||||||||||||||||
Gain on sale of operations, net | (6,385) | (0.12) | (6,385) | (0.12) | |||||||||||||||||||
Legal settlement, net | 30,468 | 0.56 | 30,468 | 0.56 | |||||||||||||||||||
Income tax effect related to adjustments | (5,608) | (0.10) | (5,782) | (0.10) | |||||||||||||||||||
Adjusted income from continuing operations | $ | 27,088 | $ | 0.50 | $ | 77,130 | $ | 1.43 | |||||||||||||||
Full Year 2021 Guidance | |||||||||||
Low | High | ||||||||||
Diluted EPS - GAAP Guidance | $ | 1.25 | $ | 1.29 | |||||||
Gain on sale of operations, net | (0.09) | (0.09) | |||||||||
Legal settlement, net | 0.43 | 0.43 | |||||||||
Adjusted Diluted EPS Guidance | $ | 1.59 | $ | 1.63 | |||||||
Diluted EPS - Reported for 2020 | $ | 1.42 | $ | 1.42 | |||||||
Change in diluted EPS - GAAP | (12) | % | (9) | % | |||||||
Change in diluted EPS - Adjusted Guidance | 12 | % | 15 | % | |||||||
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Cover |
Jul. 29, 2021 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Jul. 29, 2021 |
Entity Registrant Name | CBIZ, Inc. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 1-32961 |
Entity Tax Identification Number | 22-2769024 |
Entity Address, Address Line One | 6050 Oak Tree Boulevard, South, Suite 500 |
Entity Address, City or Town | Cleveland |
Entity Address, State or Province | OH |
Entity Address, Postal Zip Code | 44131 |
City Area Code | 216 |
Local Phone Number | 447-9000 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock per value $0.01 per share |
Trading Symbol | CBZ |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
Amendment Flag | false |
Entity Central Index Key | 0000944148 |
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