CBIZ Reports Fourth-Quarter and Full-Year 2008 Results
Full-Year Revenue Grows 10% Excluding Non-Recurring Gains, EPS from Continuing Operations Grows 23%
For the year ended
During 2008,
"As we enter 2009,
Outlook for 2009
In 2009,
In 2009,
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 Company's
ability to adequately manage 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 its 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
CBIZ, INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
THREE MONTHS ENDED DECEMBER 31, 2008 AND 2007
(In thousands, except percentages and per share data)
THREE MONTHS ENDED
DECEMBER 31,
------------
---- - ------- -
2008 % 2007 (1) %
---- - -------- -
Revenue $163,550 100.0% $154,779 100.0%
Operating expenses 146,171 89.4% 141,454 91.4%
------ ---- ------ ---
Gross margin 17,379 10.6% 13,325 8.6%
Corporate general and
administrative expenses 6,378 3.9% 6,229 4.0%
------ --- ----- ---
Operating income 11,001 6.7% 7,096 4.6%
Other income (expense):
Interest expense (1,833) -1.1% (1,513) -1.0%
Gain on sale of
operations, net 275 0.2% 19 0.0%
Other income (expense),
net (2) (3) (3,582) -2.2% 7,261 4.7%
------ ---- ----- ---
Total other income
(expense), net (5,140) -3.1% 5,767 3.7%
Income from continuing
operations before income
tax expense 5,861 3.6% 12,863 8.3%
Income tax expense 2,104 4,879
----- --- ----- ---
Income from continuing
operations 3,757 2.3% 7,984 5.2%
Loss from operations of
discontinued
businesses, net of tax (224) (1,053)
Gain (loss) on disposal of
discontinued businesses,
net of tax 40 (831)
------ --- ------ ---
Net income $3,573 2.2% $6,100 3.9%
====== ======
Diluted earnings (loss) per
share:
Continuing operations $0.06 $0.12
Discontinued operations - (0.03)
- -----
Net income $0.06 $0.09
===== =====
Diluted weighted average
common shares
outstanding 61,765 65,607
Other data from continuing
operations:
EBIT (4) $6,623 $7,098
EBITDA (4) $10,388 $10,621
Diluted earnings per share
before non-recurring gains (5) $0.05 $0.05
1) Certain amounts in the 2007 financial data have been reclassified to conform to the current year presentation.
(2) Includes net losses of
(3) Other income (expense), net for the three months ended
(4) EBIT represents income from continuing operations before income taxes,
interest expense, gain on the sale of operations and gains related to the
sale of a long-term investment described in Note (3). EBITDA represents
EBIT before depreciation and amortization expense of
(5) Amount excludes gains related to the sale of a long-term investment
described in Note(3), and was computed by subtracting net of tax gains of
CBIZ, INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
TWELVE MONTHS ENDED DECEMBER 31, 2008 AND 2007
(In thousands, except percentages and per share data)
TWELVE MONTHS ENDED
DECEMBER 31,
--------------
---- - ------- -
2008 % 2007 (1) %
---- - -------- -
Revenue $704,263 100.0% $640,315 100.0%
Operating expenses 607,573 86.3% 560,168
87.5%
------ ---- ------ ----
Gross margin 96,690 13.7% 80,147 12.5%
Corporate general and administrative
expenses 28,691 4.0% 29,462 4.6%
------ --- ------ ---
Operating income 67,999 9.7% 50,685 7.9%
Other income (expense):
Interest expense (7,242) -1.0% (5,763) -0.9%
Gain on sale of operations, net 745 0.1% 144 0.0%
Other income (expense), net (2) (3) (7,612) -1.1% 10,589 1.7%
------ ---- ------ ---
Total other income (expense),
net (14,109) -2.0% 4,970 0.8%
Income from continuing operations
before income tax expense 53,890 7.7% 55,655 8.7%
Income tax expense 20,546 22,510
------ --- ------ ---
Income from continuing operations 33,344 4.7% 33,145 5.2%
Loss from operations of discontinued
businesses, net of tax (474) (2,187)
Gain (loss) on disposal of discontinued
businesses, net of tax (268) 3,882
------- --- ------- ---
Net income $32,602 4.6% $34,840 5.4%
======= =======
Diluted earnings (loss) per share:
Continuing operations $0.53 $0.50
Discontinued operations (0.01) 0.03
----- ----
Net income $0.52 $0.53
===== =====
Diluted weighted average common
shares outstanding 62,572 66,356
Other data from continuing operations:
EBIT (4) $59,591 $54,015
EBITDA (4) $74,702 $67,550
Diluted earnings per share before
non-recurring gains (5) $0.53 $0.43
(1) Certain amounts in the 2007 financial data have been reclassified to conform to the current year presentation.
(2) Includes a net loss of
(3) Other income (expense), net for the twelve months ended December 31,
2008 and 2007 includes gains of
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.
(5) Amount excludes gains related to the sale of a long-term investment
described in Note (3), and was computed by subtracting net of tax gains of
CBIZ, INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
(In thousands, except percentages and ratios)
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
------------ --------------
2008 2007 (1) 2008 2007 (1)
---- -------- ---- --------
Revenue
Financial Services $67,570 $62,679 $312,122 $289,324
Employee Services 43,358 42,495 182,433 172,711
Medical Management
Professionals 40,940 38,709 164,950 132,853
National Practices 11,682 10,896 44,758 45,427
------ ------ ------ ------
Total $163,550 $154,779 $704,263 $640,315
======== ======== ======== ========
Gross margin
Financial Services $3,986 $1,645 $46,682 $40,323
Employee Services 6,608 7,457 30,961 31,878
Medical Management
Professionals 5,843 4,986 21,555 16,877
National Practices 526 966 2,358 4,180
Operating expenses -
unallocated (2) 416 (1,729) (4,866) (13,111)
--- ------ ------ -------
Total $17,379 $13,325 $96,690 $80,147
======= ======= ======= =======
SELECT BALANCE SHEET DATA AND RATIOS
DECEMBER 31, DECEMBER 31,
2008 (5) 2007 (1)
-------- --------
Cash and cash equivalents $9,672 $12,144
Restricted cash $15,786 $15,402
Accounts receivable, net $130,824 $115,333
Current assets before funds
held for clients $178,565 $161,681
Funds held for clients -
current and non-current $113,121 $88,048
Goodwill and other intangible
assets, net $350,001 $268,388
Total assets $702,563 $577,992
Current liabilities before
client fund obligations $90,133 $95,605
Client fund obligations $116,638 $88,048
Convertible notes $100,000 $100,000
Bank debt $125,000 $30,000
Total liabilities $467,046 $351,546
Treasury stock $(256,295) $(214,883)
Total stockholders' equity $235,517 $226,446
Debt to equity (3) 95.5% 57.4%
Days sales outstanding (DSO) -
continuing operations (4) 67 65
Shares outstanding 62,472 64,637
====== ======
Basic weighted average common
Shares outstanding 61,839 65,061
====== ======
Diluted weighted average
common shares outstanding 62,572 66,356
====== ======
(1) Certain amounts in the 2007 financial data have been reclassified to conform to the current year presentation.
(2) Represents operating expenses not directly allocated to individual business units, including gains or losses attributable to assets held in the Company's deferred compensation plan, stock based compensation, consolidation and integration charges and certain advertising expenses.
(3) Ratio is convertible notes and bank debt divided by total stockholders' equity.
(4) DSO is provided for continuing operations and represent 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
twelve months ended
(5) Balance sheet line items may change once the closing balance sheets
for the businesses acquired on
SOURCE
CONTACT: Ware Grove, Chief Financial Officer, or
Director, Corporate Relations, of
Web Site: http://www.cbiz.com
(CBZ)