(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 December 31, | ||||||||||||||||||||||||||
2021 | % | 2020 | % | |||||||||||||||||||||||
Revenue | $ | 242,828 | 100.0 | % | $ | 211,110 | 100.0 | % | ||||||||||||||||||
Operating expenses (1) | 246,402 | 101.5 | 211,748 | 100.3 | ||||||||||||||||||||||
Gross loss | (3,574) | (1.5) | (638) | (0.3) | ||||||||||||||||||||||
Corporate general and administrative expenses (1) | 14,816 | 6.1 | 13,078 | 6.2 | ||||||||||||||||||||||
Operating loss | (18,390) | (7.6) | (13,716) | (6.5) | ||||||||||||||||||||||
Other (expense) income: | ||||||||||||||||||||||||||
Interest expense | (1,016) | (0.4) | (816) | (0.4) | ||||||||||||||||||||||
Loss on sale of operations, net | (390) | (0.2) | (587) | (0.3) | ||||||||||||||||||||||
Other income, net (1) (2) | 6,212 | 2.6 | 13,050 | 6.2 | ||||||||||||||||||||||
Total other income, net | 4,806 | 2.0 | 11,647 | 5.5 | ||||||||||||||||||||||
Loss from continuing operations before income tax benefit | (13,584) | (5.6) | (2,069) | (1.0) | ||||||||||||||||||||||
Income tax benefit | (3,971) | (1,979) | ||||||||||||||||||||||||
Loss from continuing operations | (9,613) | (4.0) | (90) | — | ||||||||||||||||||||||
Loss from operations of discontinued businesses, net of tax | (7) | (4) | ||||||||||||||||||||||||
Net loss | $ | (9,620) | (4.0) | % | $ | (94) | — | % | ||||||||||||||||||
Diluted loss per share: | ||||||||||||||||||||||||||
Continuing operations | $ | (0.19) | $ | — | ||||||||||||||||||||||
Discontinued operations | — | — | ||||||||||||||||||||||||
Net loss | $ | (0.19) | $ | — | ||||||||||||||||||||||
Diluted weighted average common shares outstanding | 51,899 | 54,039 | ||||||||||||||||||||||||
Other data from continuing operations: | ||||||||||||||||||||||||||
Adjusted EBITDA (3) | $ | (5,021) | $ | 5,196 | ||||||||||||||||||||||
Three Months Ended December 31, | ||||||||||||||||||||||||||
2021 | % of Revenue | 2020 | % of Revenue | |||||||||||||||||||||||
Operating expenses | $ | 6,152 | 2.5 | % | $ | 11,010 | 5.2 | % | ||||||||||||||||||
Corporate general and administrative expenses | 908 | 0.4 | % | 1,244 | 0.6 | % | ||||||||||||||||||||
Other income, net | 7,060 | 2.9 | % | 12,254 | 5.8 | % |
Three Months Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
As Reported | Deferred Compensation Plan | Adjusted | % of Revenue | As Reported | Deferred Compensation Plan | Adjusted | % of Revenue | ||||||||||||||||||||||||||||||||||||||||
Gross margin | $ | (3,574) | $ | 6,152 | $ | 2,578 | 1.1 | % | $ | (638) | $ | 11,010 | $ | 10,372 | 4.9 | % | |||||||||||||||||||||||||||||||
Operating income (expense) | (18,390) | 7,060 | (11,330) | (4.7) | % | (13,716) | 12,254 | (1,462) | (0.7) | % | |||||||||||||||||||||||||||||||||||||
Other income (expense), net | 6,212 | (7,060) | (848) | (0.3) | % | 13,050 | (12,254) | 796 | 0.4 | % | |||||||||||||||||||||||||||||||||||||
Loss from continuing operations before income tax benefit | (13,584) | — | (13,584) | (5.6) | % | (2,069) | — | (2,069) | (1.0) | % |
Twelve Months Ended December 31, | ||||||||||||||||||||||||||
2021 | % | 2020 | % | |||||||||||||||||||||||
Revenue | $ | 1,104,925 | 100.0 | % | $ | 963,897 | 100.0 | % | ||||||||||||||||||
Operating expenses (1) | 945,635 | 85.6 | 825,351 | 85.6 | ||||||||||||||||||||||
Gross margin | 159,290 | 14.4 | 138,546 | 14.4 | ||||||||||||||||||||||
Corporate general and administrative expenses (1) | 56,150 | 5.1 | 46,066 | 4.8 | ||||||||||||||||||||||
Legal settlement, net | 30,468 | 2.7 | — | — | ||||||||||||||||||||||
Operating income | 72,672 | 6.6 | 92,480 | 9.6 | ||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||
Interest expense | (3,868) | (0.4) | (4,983) | (0.5) | ||||||||||||||||||||||
Gain (loss) on sale of operations, net | 5,995 | 0.5 | (509) | (0.1) | ||||||||||||||||||||||
Other income, net (1) (2) | 18,241 | 1.7 | 16,500 | 1.7 | ||||||||||||||||||||||
Total other income, net | 20,368 | 1.8 | 11,008 | 1.1 | ||||||||||||||||||||||
Income from continuing operations before income tax expense | 93,040 | 8.4 | 103,488 | 10.7 | ||||||||||||||||||||||
Income tax expense | 22,129 | 25,141 | ||||||||||||||||||||||||
Income from continuing operations | 70,911 | 6.4 | 78,347 | 8.1 | ||||||||||||||||||||||
Loss from operations of discontinued businesses, net of tax | (24) | (48) | ||||||||||||||||||||||||
Net income | $ | 70,887 | 6.4 | % | $ | 78,299 | 8.1 | % | ||||||||||||||||||
Diluted income per share: | ||||||||||||||||||||||||||
Continuing operations | $ | 1.32 | $ | 1.42 | ||||||||||||||||||||||
Discontinued operations | — | (0.01) | ||||||||||||||||||||||||
Net income | $ | 1.32 | $ | 1.41 | ||||||||||||||||||||||
Diluted weighted average common shares outstanding | 53,723 | 55,359 | ||||||||||||||||||||||||
Other data from continuing operations: | ||||||||||||||||||||||||||
Adjusted EBITDA (3) | $ | 148,459 | $ | 132,119 | ||||||||||||||||||||||
Adjusted EPS (3) | $ | 1.66 | $ | 1.42 | ||||||||||||||||||||||
Twelve Months Ended December 31, | ||||||||||||||||||||||||||
2021 | % of Revenue | 2020 | % of Revenue | |||||||||||||||||||||||
Operating expenses | $ | 17,317 | 1.6 | % | $ | 13,806 | 1.4 | % | ||||||||||||||||||
Corporate general and administrative expenses | 2,168 | 0.2 | % | 1,587 | 0.2 | % | ||||||||||||||||||||
Other income, net | 19,485 | 1.8 | % | 15,393 | 1.6 | % |
Twelve Months Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
As Reported | Deferred Compensation Plan | Adjusted | % of Revenue | As Reported | Deferred Compensation Plan | Adjusted | % of Revenue | ||||||||||||||||||||||||||||||||||||||||
Gross margin | $ | 159,290 | $ | 17,317 | $ | 176,607 | 16.0 | % | $ | 138,546 | $ | 13,806 | $ | 152,352 | 15.8 | % | |||||||||||||||||||||||||||||||
Operating income | 72,672 | 19,485 | 92,157 | 8.3 | % | 92,480 | 15,393 | 107,873 | 11.2 | % | |||||||||||||||||||||||||||||||||||||
Other income (expense), net | 18,241 | (19,485) | (1,244) | (0.1) | % | 16,500 | (15,393) | 1,107 | 0.1 | % | |||||||||||||||||||||||||||||||||||||
Income from continuing operations before income tax expense | 93,040 | — | 93,040 | 8.4 | % | 103,488 | — | 103,488 | 10.7 | % |
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||
Financial Services | $ | 156,056 | $ | 131,419 | 734,026 | 629,778 | ||||||||||||||||||||
Benefits and Insurance Services | 76,667 | 70,325 | 332,323 | 297,758 | ||||||||||||||||||||||
National Practices | 10,105 | 9,366 | 38,576 | 36,361 | ||||||||||||||||||||||
Total | $ | 242,828 | $ | 211,110 | $ | 1,104,925 | $ | 963,897 | ||||||||||||||||||
Gross Margin | ||||||||||||||||||||||||||
Financial Services | (3,338) | 2,147 | $ | 125,788 | $ | 104,569 | ||||||||||||||||||||
Benefits and Insurance Services | 8,765 | 10,487 | 60,673 | 49,401 | ||||||||||||||||||||||
National Practices | 1,153 | 1,072 | 4,082 | 3,724 | ||||||||||||||||||||||
Operating expenses - unallocated (1): | ||||||||||||||||||||||||||
Other expense | (4,002) | (3,334) | (13,936) | (5,342) | ||||||||||||||||||||||
Deferred compensation | (6,152) | (11,010) | (17,317) | (13,806) | ||||||||||||||||||||||
Total | $ | (3,574) | $ | (638) | $ | 159,290 | $ | 138,546 | ||||||||||||||||||
Twelve Months Ended December 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Net income | $ | 70,887 | $ | 78,299 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation and amortization expense | 27,078 | 23,139 | ||||||||||||
(Gain) loss on sale of operations, net | (5,995) | 509 | ||||||||||||
Bad debt expense, net of recoveries | 3,054 | 4,409 | ||||||||||||
Adjustments to contingent earnout liability, net | 2,367 | (629) | ||||||||||||
Stock-based compensation expense | 11,407 | 8,869 | ||||||||||||
Other noncash adjustments | 9,108 | (285) | ||||||||||||
Net income, after adjustments to reconcile net income to net cash provided by operating activities | 117,906 | 114,311 | ||||||||||||
Changes in assets and liabilities, net of acquisitions and divestitures | 13,272 | 32,605 | ||||||||||||
Operating cash flows provided by continuing operations | 131,178 | 146,916 | ||||||||||||
Operating cash used in discontinued operations | (24) | (71) | ||||||||||||
Net cash provided by operating activities | 131,154 | 146,845 | ||||||||||||
Net cash used in investing activities | (82,010) | (46,406) | ||||||||||||
Net cash used in financing activities | (69,005) | (76,609) | ||||||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | (19,861) | 23,830 | ||||||||||||
Cash, cash equivalents and restricted cash at beginning of year | $ | 170,335 | $ | 146,505 | ||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 150,474 | $ | 170,335 | ||||||||||
Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheet: | ||||||||||||||
Cash and cash equivalents | $ | 1,997 | $ | 4,652 | ||||||||||
Restricted cash | 30,383 | 23,951 | ||||||||||||
Cash equivalents included in funds held for clients | 118,094 | 141,732 | ||||||||||||
Total cash, cash equivalents and restricted cash | $ | 150,474 | $ | 170,335 |
December 31, 2021 | December 31, 2020 | |||||||||||||
Cash and cash equivalents | 1,997 | 4,652 | ||||||||||||
Restricted cash | 30,383 | 23,951 | ||||||||||||
Accounts receivable, net | 242,168 | 216,175 | ||||||||||||
Current assets before funds held for clients | 293,765 | 268,991 | ||||||||||||
Funds held for clients | 157,909 | 167,440 | ||||||||||||
Goodwill and other intangible assets, net | 840,783 | 756,750 | ||||||||||||
Total assets | 1,627,934 | 1,513,754 | ||||||||||||
Current liabilities before client fund obligations | 265,174 | 211,285 | ||||||||||||
Client fund obligations | 158,115 | 166,989 | ||||||||||||
Total long-term debt | 154,851 | 107,192 | ||||||||||||
Total liabilities | 923,386 | 811,134 | ||||||||||||
Treasury stock | (694,716) | (595,297) | ||||||||||||
Total stockholders' equity | 704,548 | 702,620 | ||||||||||||
Debt to equity | 22.0 | % | 15.3 | % | ||||||||||
Days sales outstanding (DSO) - continuing operations (1) | 71 | 72 | ||||||||||||
Shares outstanding | 52,038 | 54,099 | ||||||||||||
Basic weighted average common shares outstanding | 52,637 | 54,288 | ||||||||||||
Diluted weighted average common shares outstanding | 53,723 | 55,359 | ||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(Loss) Income from continuing operations | $ | (9,613) | $ | (90) | $ | 70,911 | $ | 78,347 | |||||||||||||||
Interest expense | 1,016 | 816 | 3,868 | 4,983 | |||||||||||||||||||
Income tax (benefit) expense | (3,971) | (1,979) | 22,129 | 25,141 | |||||||||||||||||||
Loss (gain) on sale of operations, net | 390 | 587 | (5,995) | 509 | |||||||||||||||||||
Legal settlement, net | — | — | 30,468 | — | |||||||||||||||||||
Depreciation | 2,771 | 2,516 | 10,781 | 9,568 | |||||||||||||||||||
Amortization | 4,386 | 3,346 | 16,297 | 13,571 | |||||||||||||||||||
Adjusted EBITDA | $ | (5,021) | $ | 5,196 | $ | 148,459 | $ | 132,119 | |||||||||||||||
Three Months Ended December 31, 2021 | Twelve Months Ended December 31, 2021 | ||||||||||||||||||||||
Amounts | EPS | Amounts | EPS | ||||||||||||||||||||
(Loss) Income from continuing operations | $ | (9,613) | $ | (0.19) | $ | 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 (loss) income from continuing operations | $ | (9,613) | $ | (0.19) | $ | 89,322 | $ | 1.66 | |||||||||||||||
Full Year 2022 Guidance | |||||||||||
Low | High | ||||||||||
Diluted EPS - GAAP Guidance | $ | 1.89 | $ | 1.93 | |||||||
Integration cost related to Marks Paneth | 0.10 | 0.10 | |||||||||
Adjusted Diluted EPS Guidance | $ | 1.99 | $ | 2.03 | |||||||
GAAP Diluted EPS for 2021 | $ | 1.32 | $ | 1.32 | |||||||
Adjusted Diluted EPS for 2021 | $ | 1.66 | $ | 1.66 | |||||||
GAAP Diluted EPS Range | 43 | % | 46 | % | |||||||
Adjusted Diluted EPS Range | 20 | % | 22 | % | |||||||
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Cover |
Feb. 17, 2022 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Feb. 17, 2022 |
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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