UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

CBIZ, INC.

(Exact Name of Registrant as Specified in Its Charter)

Delaware		0-25890		22-2769024
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(I.R.S. Employer Identification No.)

6050 Oak Tree Boulevard, South, Suite 500, Cleveland, Ohio		44131
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s Telephone Number, Including Area Code 216-447-9000

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Item 2.02. Results of Operations and Financial Condition.

On April 26, 2006, CBIZ, Inc. announced its earnings and conducted its earnings conference call for the first quarter ended March 31, 2006. A copy of the press release is furnished herewith as Exhibit 99.1. On the conference call, CBIZ disclosed the following additional information:

	•		Each of CBIZ’s operating practice groups contributed to same-unit revenue growth in the first quarter of 2006 versus the comparable period in 2005, as follows: Financial Services, 6.4%; Employee Services, 9.7%; Medical Management Professionals, 8.8%; and National Practices, 10.7%.
	•		Investment income earned by our payroll unit on client cash balances was approximately $336,000 during the first quarter of 2006, compared with $170,000 for the comparable period in 2005. During the first quarter of 2006, CBIZ began reporting this investment income as revenue (previously reported as other income). The 2005 results have been restated to conform to the 2006 presentation.
	•		During the first quarter of 2006, CBIZ recorded stock compensation expense of approximately $0.6 million, relating to unvested stock options, restricted stock awards, and performance shares. Approximately 60% of the stock compensation expense is reported as operating expenses, and 40% as corporate general and administrative expense. Stock compensation expense is expected to impact full year 2006 earnings per share by $0.03 per share.
	•		Cash payments related to acquisitions was approximately $16.0 million during the first quarter 2006. Cash payments for acquisitions relate to companies and a trade name that were acquired during the first quarter of 2006, as well as contingent payments made for companies and client lists that were acquired in previous years. Recently acquired companies are expected to generate approximately $20 million in annualized revenue during 2006.
	•		Capital spending during the first quarter of 2006 was approximately $1.9 million.
	•		Days Sales Outstanding was 82 days for the first quarter of 2006 compared to 88 days for the first quarter of 2005.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit 99.1 Press Release of CBIZ, Inc. dated April 26, 2006, announcing its financial results for the first quarter ended March 31, 2006.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Exhibit 99.1

		PRESS RELEASE

FOR IMMEDIATE RELEASE		CONTACT:		Ware Grove
				Chief Financial Officer
				-or-
				Lori Novickis
				Director, Corporate Relations
				CBIZ, Inc.
				Cleveland, Ohio
				(216) 447-9000

CBIZ REPORTS FIRST-QUARTER 2006 RESULTS

REVENUE GROWS 10%; NET INCOME FROM CONTINUING OPERATIONS UP 30%

Cleveland, Ohio (April 26, 2006)—CBIZ, Inc. (NASDAQ: CBIZ) today announced first-quarter results for the quarter ended March 31, 2006.

CBIZ reported revenue of $171.1 million for the first quarter ended March 31, 2006, an increase of 10.3% over the $155.2 million reported for the first quarter of 2005. Same-unit revenue increased by 7.9%, or by $12.2 million. Revenue from newly acquired operations contributed $3.7 million, or 2.4% to revenue growth. CBIZ posted income from continuing operations for the quarter of $13.2 million, or $0.17 per diluted share, compared with $10.2 million, or $0.13 per diluted share in the first quarter of 2005.

During the first quarter CBIZ completed the acquisition of a medical billing company located in Flint, Michigan and a property and casualty insurance broker in San Jose, California. In April, the company announced the acquisition of a property and casualty insurance broker in St. Joseph, Missouri.

At March 31, 2006, bank debt stood at $61.2 million compared with $67.5 million at the end of the first quarter of 2005. In January 2006, the company adopted FAS 123(R) related to accounting for stock compensation expense, and in the first quarter, the company recorded $564,000 of expense related to stock compensation.

In the first quarter of 2006, the Company realigned its operations into four client-centric business groups, Financial Services, Employee Services, National Practices, and Medical Management Professionals. As a result, the business segment data reported as of March 31, 2006 reflects this client-centric approach to service delivery.

“We are pleased to be able to continue the positive momentum in our operating and financial results for the first quarter of 2006. All of our business segments are performing well, our cross-serving results are on track, and the acquisitions we made in January have performed well in the first quarter. We are pleased to

Page 1 of 4

6050 Oak Tree Boulevard, South • Suite 500 • Cleveland, OH 44131 • Phone (216) 447-9000 • Fax (216) 447-9007

be able to report same-unit revenue growth of 7.9% in the first quarter which represents the eleventh consecutive quarter of same-unit revenue growth at CBIZ,” stated Steven L. Gerard, Chairman and CEO. “With the 10.3% revenue growth in the first quarter, we are pleased to be able to report a 29.7% increase in income from continuing operations which represents a 30.8% increase in earnings per diluted share. We are on track with our goal to achieve a minimum 20% to 25% increase in earnings per share in 2006, compared with the $0.28 per share reported for 2005,” 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 1-888-545-0687 several minutes before 11:00 a.m. (ET). If you are dialing from outside the United States, dial 1-630-691-2764. A replay of the call will be available starting at 1:00 p.m. (ET), April 26 through midnight (ET), April 28, 2006. 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 14406299. 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 integrated financial services which include accounting and tax, internal audit, Sarbanes-Oxley 404 compliance, and valuation. Employee services include employee benefits, property and casualty insurance, payroll, HR consulting and wealth management. CBIZ also provides information technology, hardware and software solutions, government relations; healthcare consulting and medical practice management. These services are provided throughout a network of more than 140 Company offices in 34 states and the District of Columbia.

For further information regarding CBIZ, call our Investor Relations Office at (216) 447-9000 or
visit our web site at www.cbiz.com.

Page 2 of 4

6050 Oak Tree Boulevard, South • Suite 500 • Cleveland, OH 44131 • Phone (216) 447-9000 • Fax (216) 447-9007

CBIZ, INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
THREE MONTHS ENDED MARCH 31, 2006 AND 2005
(In thousands, except percentages and per share data)

		THREE MONTHS ENDED
		MARCH 31,
		2006				%				2005 (1)				%
Revenue		$	171,061				100.0	%		$	155,156				100.0	%
Operating expenses			138,731				81.1	%			127,015				81.9	%
Gross margin			32,330				18.9	%			28,141				18.1	%
Corporate general and administrative expense			6,732				3.9	%			6,421				4.1	%
Depreciation and amortization expense			4,071				2.4	%			3,894				2.5	%
Operating income			21,527				12.6	%			17,826				11.5	%
Other income (expense):
Interest expense			(792	)			-0.5	%			(781	)			-0.5	%
Other income, net			1,289				0.8	%			388				0.2	%
Total other income (expense), net			497				0.3	%			(393	)			-0.3	%
Income from continuing operations before income tax expense			22,024				12.9	%			17,433				11.2	%
Income tax expense			8,788								7,225
Income from continuing operations			13,236				7.7	%			10,208				6.6	%
Loss from operations of discontinued businesses, net of tax			(1,385	)							(1,962	)
Gain (loss) on disposal of discontinued businesses, net of tax			167								(109	)
Net income		$	12,018				7.0	%		$	8,137				5.2	%
Diluted earnings (loss) per share:
Continuing operations		$	0.17							$	0.13
Discontinued operations			(0.01	)							(0.03	)
Net income		$	0.16							$	0.10
Diluted shares outstanding			77,354								77,718
Other data from continuing operations:
EBIT (2)		$	22,816							$	18,214
EBITDA (2)		$	26,887							$	22,108

Page 3 of 4

6050 Oak Tree Boulevard, South • Suite 500 • Cleveland, OH 44131 • Phone (216) 447-9000 • Fax (216) 447-9007

CBIZ, INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
THREE MONTHS ENDED MARCH 31, 2006 AND 2005
(In thousands, except percentages and per share data)

		THREE MONTHS ENDED
		MARCH 31,
		2006				2005 (3)
Revenue
Financial Services		$	89,448			$	83,822
Employee Services			41,951				37,828
Medical Management Professionals			28,222				23,174
National Practices			11,440				10,332
Total		$	171,061			$	155,156
Gross margin
Financial Services		$	25,595			$	24,319
Employee Services			8,441				6,397
Medical Management Professionals			3,538				3,546
National Practices			716				104
Total (1)		$	32,330			$	28,141

SELECT BALANCE SHEET DATA AND RATIOS

		MARCH 31,				DECEMBER 31,
		2006				2005 (3)
Cash and cash equivalents		$	2,919			$	8,909
Restricted cash		$	12,115			$	9,873
Accounts receivable, net		$	127,192			$	98,390
Current assets before funds held for clients		$	167,139			$	144,430
Funds held for clients		$	70,250			$	65,669
Goodwill and other intangible assets, net		$	201,593			$	184,673
Total assets		$	501,044			$	454,584
Current liabilities before client fund obligations		$	74,765			$	87,785
Client fund obligations		$	70,250			$	65,669
Bank debt		$	61,200			$	32,200
Total liabilities		$	226,442			$	199,923
Treasury stock		$	(102,317	)		$	(102,317	)
Total stockholders’ equity		$	274,602			$	254,661
Bank debt to equity			22.3	%			12.6	%
Days sales outstanding from continuing operations (2)			81				65
Shares outstanding			75,957				73,822
Basic shares outstanding			74,849				74,448
Diluted shares outstanding			77,354				76,827

Page 4of 4

6050 Oak Tree Boulevard, South • Suite 500 • Cleveland, OH 44131 • Phone (216) 447-9000 • Fax (216) 447-9007