CBIZ Reports First-Quarter 2009 Results
--Revenue Grows 11.7% --EPS From Continuing Operations Increases 11.5% --Cash EPS Increases 17.6%CLEVELAND, April 30, 2009 /PRNewswire-FirstCall via COMTEX/ -- CBIZ, Inc. (NYSE: CBZ) today announced results for the first quarter ended March 31, 2009.
CBIZ reported revenue of $220.2 million for the first quarter ended March 31, 2009, an increase of 11.7% over the $197.2 million reported for the first quarter of 2008. Revenue from newly acquired operations, net of divestitures, contributed $26.8 million or 13.6% to revenue growth in the first quarter compared with the same period a year ago. Same-unit revenue declined by 1.9%, or $3.8 million. CBIZ reported income from continuing operations for the quarter of $18.1 million, or $0.29 per diluted share, compared with $16.7 million, or $0.26 per diluted share in the first quarter of 2008.
Concurrent with the implementation of FSP APB 14-1 relating to non-cash interest expense on its $100 million Convertible Notes, the Company is reporting Cash EPS, a non-GAAP measure designed to more clearly illustrate the impact of certain non-cash charges to income from continuing operations. For the quarter ended March 31, 2009, Cash EPS was $0.40 per diluted share compared with $0.34 per diluted share for the same quarter a year ago. A schedule which reconciles Cash EPS with GAAP EPS is attached.
During the first quarter, CBIZ had a 10(b)5-1 plan in place to repurchase shares of its common stock. Through March 31, 2009 the Company had repurchased approximately 838,000 shares at a cost of approximately $6.7 million.
"We are very pleased with our first-quarter results which reflect growth in revenue and earnings and are in line with our expectations for 2009. Integration is going smoothly for both the New York and New England Financial Services units that were acquired in December 2008 and each operation is performing well," stated Steven L. Gerard, Chairman and CEO." As expected, we are experiencing some softness in our business that is related to higher unemployment levels and other generally recognized economic factors this year, however, we are taking appropriate action to continue to generate strong cash flow and we expect 2009 EBITDA to be approximately $95 million. We continue to expect 2009 revenue growth of 10% to 15% with EPS growth also in a 10% to 15% range compared with 2008," concluded Mr. Gerard.
CBIZ will host a conference call later this morning to discuss its results. The call will be webcast in a listen-only mode over the Internet for the media and the public, and can be accessed at www.cbiz.com. Shareholders and analysts wishing to participate in the conference call may dial 1-800-559-2403 several minutes before 11:00 a.m. (ET). If you are dialing from outside the United States, dial 1-847-619-6534. A replay of the call will be available starting at 1:00 p.m. (ET) April 30 through midnight (ET), May 4, 2009. The dial-in number for the replay is 1-877-213-9653. If you are listening from outside the United States, dial 1-630-652-3041. The access code for the replay is 24329234. A replay of the webcast will also be available on the Company's web site at www.cbiz.com.
CBIZ, Inc. provides professional business services that help clients better manage their finances, employees and technology. As the largest benefits specialist, one of the largest accounting, valuation and medical practice management companies in the United States, CBIZ provides its clients with financial services including accounting and tax, internal audit, merger and acquisition advisory, and valuation. Employee services include group benefits, property and casualty insurance, payroll, HR consulting and wealth management. CBIZ also provides information technology, hardware and software solutions, healthcare consulting and medical practice management. These services are provided through more than 140 Company offices in 36 states.
For further information regarding CBIZ, call our Investor Relations Office at (216) 447-9000 or visit our web site at www.cbiz.com.
CBIZ, INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
THREE MONTHS ENDED MARCH 31, 2009 AND 2008
(In thousands, except percentages and per share data)
THREE MONTHS ENDED
MARCH 31,
---------------------------
---- ---- -------- ----
2009 % 2008 (1) %
---- ---- -------- ----
Revenue $220,177 100.0% $197,163 100.0%
Operating expenses 178,269 81.0% 158,141 80.2%
------ ---- ------ ----
Gross margin 41,908 19.0% 39,022 19.8%
Corporate general and
administrative expenses 7,709 3.5% 7,252 3.7%
------ ---- ------ ----
Operating income 34,199 15.5% 31,770 16.1%
Other income (expense):
Interest expense (3,505) -1.6% (2,580) -1.3%
Gain on sale of operations, net 80 0.0% 20 0.0%
Other expense, net (2) (592) -0.2% (1,347) -0.7%
---- ---- ------ ----
Total other expense, net (4,017) -1.8% (3,907) -2.0%
Income from continuing operations
before income tax expense 30,182 13.7% 27,863 14.1%
Income tax expense 12,130 11,170
------ ---- ------ ----
Income from continuing operations 18,052 8.2% 16,693 8.5%
Income from operations of
discontinued businesses, net of
tax 122 2
Gain (loss) on disposal of
discontinued businesses, net of
tax 7 (449)
------- ---- ------- ----
Net income $18,181 8.3% $16,246 8.2%
======= =======
Diluted earnings (loss) per share:
Continuing operations $0.29 $0.26
Discontinued operations - (0.01)
----- -----
Net income $0.29 $0.25
===== =====
Diluted weighted average common
shares outstanding 61,950 64,266
Other data from continuing
operations:
EBIT (3) $33,607 $30,423
EBITDA (3) $38,695 $34,240
(1) Certain amounts in the 2008 financial data have been reclassified to
conform to the current year presentation and revised to reflect the
retroactive application of FSP APB 14-1.
(2) Includes net losses of $836 and $1,788 for the three months ended
March 31, 2009 and 2008, respectively, attributable to assets held
in the Company's deferred compensation plan. These net losses do not
impact "income from continuing operations before income tax expense"
as they are directly offset by compensation to the Plan participants.
Compensation is included in "operating expenses" and "corporate
general and administrative expenses."
(3) EBIT represents income from continuing operations before income
taxes, interest expense, and gain on sale of divested operations.
EBITDA represents EBIT before depreciation and amortization expense
of $5,088 and $3,817 for the three months ended March 31, 2009
and 2008, respectively. The Company has included EBIT and EBITDA 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
service debt. EBIT and EBITDA should not be regarded as an
alternative or replacement to any measurement of performance under
generally accepted accounting principles.
CBIZ, INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
(In thousands, except per share data)
SELECT SEGMENT DATA
-------------------
THREE MONTHS ENDED
MARCH 31,
-----------
2009 2008 (1)
------- --------
Revenue
Financial Services $124,693 $98,991
Employee Services 45,463 47,255
Medical Management
Professionals 39,880 40,766
National Practices 10,141 10,151
------ ------
Total $220,177 $197,163
======== ========
Gross margin
Financial Services $31,555 $27,255
Employee Services 8,037 8,497
Medical Management
Professionals 4,712 4,620
National Practices 94 142
Operating expenses -
unallocated (2) (2,490) (1,492)
------ ------
Total $41,908 $39,022
======= =======
(1) Certain amounts in the 2008 financial data have been reclassified to
conform to the current year presentation.
(2) Represents operating expenses not directly allocated to individual
businesses, including stock based compensation, consolidation and
integration charges and certain advertising expenses. Unallocated
operating expenses were partially offset by reductions in
compensation expense related to losses attributable to assets held in
the Company's deferred compensation plan of $708 and $1,514 for the
three months ended March 31, 2009 and 2008, respectively.
CASH EARNINGS AND PER SHARE DATA
--------------------------------
Reconciliation of Income from Continuing Operations to Cash Earnings from
Continuing Operations (3)
-------------------------------------------------------------------------
THREE MONTHS ENDED MARCH 31,
----------------------------
2009 Per Share 2008 Per Share
---- --------- ---- ---------
Income from continuing
operations $18,052 $0.29 $16,693 $0.26
Selected non-cash items:
Depreciation and
amortization 5,088 0.08 3,817 0.06
Non-cash interest on
convertible note 965 0.02 894 0.01
Stock based compensation 945 0.01 671 0.01
----- ---- ----- ----
Non-cash items 6,998 0.11 5,382 0.08
----- ---- ----- ----
Cash earnings -
continuing operations $25,050 $0.40 $22,075 $0.34
======= ===== ======= =====
Diluted weighted
average shares 61,950 64,266
====== ======
(3) The Company believes cash earnings and cash earnings per diluted
share (non-GAAP measures) more clearly illustrate the the impact of
certain non-cash charges to income from continuing operations and are
a useful measure for the Company and its analysts. Cash earnings is
defined as income from continuing operations excluding depreciation
and amortization, non-cash interest expense and non-cash stock based
compensation expense. Cash earnings per diluted share is calculated by
dividing cash earnings by the number of weighted average diluted
shares outstanding for the period indicated. Cash earnings and cash
earnings per diluted share should not be regarded as a replacement or
alternative of performance under generally accepted accounting
principles.
CBIZ, INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
(In thousands, except percentages and ratios)
SELECT BALANCE SHEET DATA AND RATIOS
------------------------------------
MARCH 31, DECEMBER 31,
2009 2008 (1)
-------- --------
Cash and cash equivalents $9,568 $9,672
Restricted cash $12,109 $15,786
Accounts receivable, net $169,718 $129,164
Current assets before funds held for
clients $213,241 $178,565
Funds held for clients - current and
non-current $142,451 $113,121
Goodwill and other intangible assets,
net $348,113 $350,216
Total assets $759,402 $698,592
Current liabilities before client
fund obligations $83,732 $90,193
Client fund obligations $145,705 $116,638
Convertible notes $90,852 $89,887
Bank debt $150,000 $125,000
Total liabilities $504,820 $456,993
Treasury stock $(262,993) $(256,295)
Total stockholders' equity $254,582 $241,599
Debt to equity (2) 94.6% 88.9%
Days sales outstanding (DSO) - continuing
operations (3) 80 67
Shares outstanding 61,803 62,472
====== ======
Basic weighted average common shares
outstanding 61,295 61,839
====== ======
Diluted weighted average common shares
outstanding 61,950 62,572
====== ======
(1) Certain amounts in the 2008 financial data have been reclassified to
conform to the current year presentation and revised to reflect the
retroactive application of FSP APB 14-1.
(2) Ratio is convertible notes and bank debt divided by total
stockholders' equity.
(3) DSO is provided for continuing operations and represents accounts
receivable (before the allowance for doubtful accounts) and unbilled
revenue (net of realization adjustments) at the end of the period,
divided by trailing twelve month daily revenue. The calculation of DSO
for the three months ended March 31, 2009 and the twelve months ended
December 31, 2008 excludes accounts receivable and unbilled revenue
for the two businesses that were acquired on December 31, 2008. 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 generally accepted accounting
principles. DSO at March 31, 2008 was 79 days.
SOURCE CBIZ, Inc.
http://www.cbiz.com