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
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| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
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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):
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
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Item 2.02 Results of Operations and Financial Condition
On July 29, 2021 , CBIZ, Inc. (the "Company") issued a press release announcing its financial results for the three and six months ended June 30, 2021. A copy of the press release is furnished herewith as Exhibit 99.1. The exhibit contains, and may implicate, forward-looking statements regarding the Company and include cautionary statements identified important factors that could cause actual results to differ materially from those anticipated.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
99.1 Press Release of CBIZ, Inc. dated July 29, 2021 , announcing its financial results for the three and six months ended June 30, 2021
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
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.
Dated: July 30, 2021
CBIZ, Inc.
| By: | /s/ Ware H. Grove | |||||||
| Name: | Ware H. Grove | |||||||
| Title: | Chief Financial Officer | |||||||
Exhibit 99.1
 |  | ||||||||||||||||
| FOR IMMEDIATE RELEASE | CONTACT: | Ware Grove | |||||||||||||||
| Chief Financial Officer | |||||||||||||||||
| -or- | |||||||||||||||||
| Lori Novickis | |||||||||||||||||
| Director, Corporate Relations | |||||||||||||||||
| CBIZ, Inc. | |||||||||||||||||
| Cleveland, Ohio | |||||||||||||||||
| (216) 447-9000 | |||||||||||||||||
CBIZ REPORTS SECOND-QUARTER AND FIRST-HALF 2021 RESULTS
AND RAISES FULL-YEAR 2021 REVENUE GUIDANCE
SECOND-QUARTER HIGHLIGHTS:
•TOTAL REVENUE UP 17.6%
•SAME-UNIT REVENUE UP 10.5%
•EPS DOWN 59%; ADJUSTED EPS UP 28.2%
FIRST-HALF HIGHLIGHTS:
•TOTAL REVENUE UP 12.6%
•SAME-UNIT REVENUE UP 6.8%
•EPS UP 4%; ADJUSTED EPS UP 36.2%
CLEVELAND (July 29, 2021) – CBIZ, Inc. (NYSE: CBZ) (the “Company”), a leading provider of financial, insurance and advisory services, today announced results for the second quarter ended June 30, 2021.
For the 2021 second quarter, CBIZ recorded revenue of $278.6 million, an increase of $41.7 million, or 17.6%, compared with the $236.9 million reported for the same period in 2020. Acquired operations, net of divestitures, contributed $16.9 million, or 7.1%, to second-quarter 2021 revenue growth. Same-unit revenue increased by $24.8 million, or 10.5%, for the quarter, compared with the same period a year ago. Income from continuing operations was $8.6 million, or $0.16 per diluted share, in the 2021 second quarter, compared with $21.5 million, or $0.39 per diluted share, for the same period a year ago. Income from continuing operations was impacted by two non-recurring items related to a settlement agreement and a divestiture.
As previously announced on June 30, 2021, the Company reached a settlement agreement with the University of Pittsburgh Medical Center (“UPMC”) related to claims arising from a lawsuit filed in connection with actuarial services provided by a former employee in 2013. Net of insurance proceeds, the pretax charge related to this settlement in the second quarter was $30.5 million. In addition, on June 1, 2021, the
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NYSE: CBZ ● www.cbiz.com ● Twitter @cbz
Company divested a small, non-core wholesale insurance business and recorded a pretax gain of $6.4 million on the sale. Eliminating the impact of these non-recurring items, Adjusted EPS increased by 28.2% to $0.50, compared with $0.39 reported a year ago. Adjusted EBITDA for the second quarter increased by 19.5% to $42.9 million, compared with $35.9 million for the same period in 2020.
For the first-half ended June 30, 2021, CBIZ recorded revenue of $579.4 million, an increase of $65.0 million, or 12.6%, over the $514.4 million recorded for the same period in 2020. Acquisitions, net of divestitures, contributed $30.2 million, or 5.9%, to revenue growth in the six months ended June 30, 2021. Same-unit revenue increased by $34.8 million, or 6.8%, compared with the same period a year ago. Income from continuing operations was $58.8 million, or $1.09 per diluted share, for the six months ended June 30, 2021, compared with $58.3 million, or $1.05 per diluted share, for the same period a year ago. For the first half of 2021, Adjusted EPS was $1.43 per diluted share. Adjusted EBITDA was $116.2 million, compared with $92.9 million in 2020.
Reconciliation tables for Adjusted EPS and Adjusted EBITDA to the most directly comparable GAAP measures can be found in the tables of this release.
During the first half of 2021, the Company repurchased a total of 2.0 million shares of its common stock. The balance outstanding on the Company’s unsecured credit facility on June 30, 2021, was $163.3 million with $233.4 million of unused borrowing capacity.
Jerry Grisko, CBIZ President and Chief Executive Officer, said, “I am pleased to report another quarter of exceptional results for CBIZ.”
“Since the onset of the pandemic, we have focused our efforts on protecting our team, supporting our clients and continuing to invest in the growth of the business. The results that we have achieved through the first six months of this year reflect those efforts and investments. Given the growth we are seeing across virtually every service line combined with our successful acquisition activity, we are increasing our revenue guidance for the full year 2021 to 10% to 12% growth, up from our previous guidance of an 8% to 10% increase, Grisko, said.”
“We are particularly pleased to have successfully completed four acquisitions this year, including three in the second quarter. On June 3rd, we announced our most recent acquisition of Optumas, a leading provider of actuarial and consulting services to state governments related to the administration of their Medicaid programs. Optumas is a complement to our government health care consulting business and will allow us to offer more comprehensive solutions to our clients. Together, the acquisitions that we have completed so far this year are expected to generate approximately $42 million in annualized revenue. Acquisitions remain a critical component of our overall strategy and our pipeline of potential opportunities is as strong as ever,” concluded Grisko.
2021 Outlook
•The Company increased its revenue growth expectations to within a range of 10% to 12% over the prior year, up from 8% to 10%.
•Although a number of factors may impact the tax rate, the Company expects an effective tax rate of approximately 25%.
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NYSE: CBZ ● www.cbiz.com ● Twitter @cbz
•The Company expects a weighted average fully diluted share count of approximately 54.0 million shares.
•On a GAAP basis, the Company expects full-year fully diluted earnings per share within a range of $1.25 to $1.29. The Company expects Adjusted Diluted EPS to grow within a range of 12% to 15% over the $1.42 reported for 2020. A schedule reconciling GAAP Diluted EPS to Non-GAAP Adjusted Diluted EPS is attached.
Conference Call
CBIZ will host a conference call at 11:00 a.m. (ET) today to discuss its results. The call will be webcast live for the media and the public, and can be accessed at www.cbiz.com. Shareholders and analysts who would like to participate in the call can register at https://dpregister.com/sreg/10158739/eb33b7ec50 to receive the dial-in number and unique personal identification number. Participants may register at any time, including up to and after the call start time.
A replay of the webcast will be made available approximately two hours following the call on the Company’s website at www.cbiz.com. For those without internet access, a replay of the call will also be available starting at approximately 1:00 p.m. (ET), July 29, through 5:00 p.m. (ET), August 6, 2021. The toll-free dial-in number for the replay is 1-877-344-7529. If you are listening from outside the United States, dial 1-412-317-0088. The access code for the replay is 10158739.
About CBIZ
CBIZ is a leading provider of financial, insurance and advisory services to businesses throughout the United States. Financial services include accounting, tax, government health care consulting, transaction advisory, risk advisory, and valuation services. Insurance services include employee benefits consulting, retirement plan consulting, property and casualty insurance, payroll, and human capital consulting. With more than 100 offices in 31 states, CBIZ is one of the largest accounting and insurance brokerage providers in the U.S. For more information, visit www.cbiz.com.
Forward-Looking Statements
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 impact of COVID-19 on the Company’s business and operations and those of our clients; the Company’s ability to adequately manage and sustain 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 the Company’s 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 Securities and Exchange Commission at www.sec.gov.
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NYSE: CBZ ● www.cbiz.com ● Twitter @cbz
CBIZ, INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
THREE MONTHS ENDED JUNE 30, 2021 AND 2020
(In thousands, except percentages and per share data)
| 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 | ||||||||||||||||||||||
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NYSE: CBZ ● www.cbiz.com ● Twitter @cbz
(1)CBIZ sponsors a deferred compensation plan, under which a CBIZ employee's compensation deferral is held in a rabbi trust and invested accordingly as directed by the employee. Income and expenses related to the deferred compensation plan are included in "Operating expenses" and "Corporate general and administrative expenses," and are directly offset by deferred compensation gains or losses in "Other income,net." The deferred compensation plan has no impact on "Income from continuing operations before income tax expense."
Income and expenses related to the deferred compensation plan for the three months ended June 30, 2021, and 2020 are:
| 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 | % | ||||||||||||||||||
Excluding the impact of the above-mentioned income and expenses related to the deferred compensation plan, the operating results for the three months ended June 30, 2021, and 2020 are:
| 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 | % | |||||||||||||||||||||||||||||||
(2)Included in "Other income, net" for the three months ended June 30, 2021, and 2020, is expense of $0.1 million and $0.5 million, respectively, related to net changes in the fair value of contingent consideration related to CBIZ's prior acquisitions.
(3)Refer to the financial highlights tables for a reconciliation of Non-GAAP financial measures to the most directly comparable GAAP financial measure, and for additional information as to the usefulness of the Non-GAAP financial measures to shareholders and investors.
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NYSE: CBZ ● www.cbiz.com ● Twitter @cbz
CBIZ, INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
SIX MONTHS ENDED JUNE 30, 2021 AND 2020
(In thousands, except percentages and per share data)
| 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 | ||||||||||||||||||||||
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NYSE: CBZ ● www.cbiz.com ● Twitter @cbz
(1)CBIZ sponsors a deferred compensation plan, under which a CBIZ employee's compensation deferral is held in a rabbi trust and invested accordingly as directed by the employee. Income and expenses related to the deferred compensation plan are included in "Operating expenses" and "Corporate general and administrative expenses," and are directly offset by deferred compensation gains or losses in "Other income (expense), net." The deferred compensation plan has no impact on "Income from continuing operations before income tax expense."
Income and expenses related to the deferred compensation plan for the six months ended June 30, 2021, and 2020 are:
| 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) | % | ||||||||||||||||||
Excluding the impact of the above-mentioned income and expenses related to the deferred compensation plan, the operating results for the six months ended June 30, 2021, and 2020 are:
| 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 | % | |||||||||||||||||||||||||||||||
(2)Included in "Other income (expense), net" for the six months ended June 30, 2021, and 2020, is expense of $0.8 million and income of $0.2 million, respectively, related to net changes in the fair value of contingent consideration related to CBIZ's prior acquisitions.
(3)Refer to the financial highlights tables for a reconciliation of Non-GAAP financial measures to the most directly comparable GAAP financial measure, and for additional information as to the usefulness of the Non-GAAP financial measures to shareholders and investors.
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CBIZ, INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
(In thousands)
SELECT SEGMENT DATA
| 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 | ||||||||||||||||||
(1)Represents operating expenses not directly allocated to individual businesses, including stock-based compensation, consolidation and integration charges, and certain advertising expenses. "Operating expenses - unallocated" also includes gains or losses attributable to the assets held in a rabbi trust associated with the Company's deferred compensation plan. These gains or losses do not impact "Income from continuing operations before income tax expense" as they are directly offset by the same adjustment to "Other income (expense), net" in the Consolidated Statements of Comprehensive Income. Net gains/losses recognized from adjustments to the fair value of the assets held in the rabbi trust are recorded as compensation expense (income) in "Operating expenses" and “Corporate, general and administrative expenses,” and offset in "Other income (expense), net."
Page 8 of 12
NYSE: CBZ ● www.cbiz.com ● Twitter @cbz
CBIZ, INC.
SELECT CASH FLOW DATA
(In thousands)
| 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 | ||||||||||
Page 9 of 12
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CBIZ, INC.
SELECT FINANCIAL DATA AND RATIOS
(In thousands)
| 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 | ||||||||||||
(1)DSO is provided for continuing operations and represents accounts receivable, net, at the end of the period, divided by trailing twelve month daily revenue. 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 GAAP. DSO on June 30, 2020 was 87.
Page 10 of 12
NYSE: CBZ ● www.cbiz.com ● Twitter @cbz
CBIZ, INC.
GAAP RECONCILIATION
Income from Continuing Operations to Adjusted EBITDA (1)
(In thousands)
| 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 | |||||||||||||||
(1)CBIZ reports its financial results in accordance with GAAP. This table reconciles Adjusted EBITDA to the most directly comparable GAAP financial measure, "Income from continuing operations." Adjusted EBITDA is not defined by GAAP and should not be regarded as an alternative or replacement to any measurement of performance under GAAP. Adjusted EBITDA is commonly used by the Company, its shareholders and debt holders as a performance measurement to evaluate, assess and benchmark the Company's operational results.
CBIZ, INC.
GAAP RECONCILIATION
Income and Diluted Earnings Per Share (“EPS”) from Continuing Operations to Adjusted Income and EPS(1)
(In thousands)
| 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 | |||||||||||||||
(1)CBIZ reports its financial results in accordance with GAAP. This table reconciles Adjusted Income and Adjusted EPS to the most directly comparable GAAP financial measures, “Income from continuing operations” and "Diluted earnings per share from continuing operations." Adjusted Income and Adjusted EPS are not defined by GAAP and should not be regarded as an alternative or replacement to any measurement of performance under GAAP. Adjusted Income and Adjusted EPS, which excludes significant non-operating related gains and losses, are used by the Company for its shareholders and debt holders as a performance measure to evaluate, assess and benchmark the Company's operational results.
Page 11 of 12
NYSE: CBZ ● www.cbiz.com ● Twitter @cbz
CBIZ, INC.
GAAP RECONCILIATION
Full Year 2021 EPS from Continuing Operations Guidance to Full Year 2021 Adjusted Diluted EPS
(In thousands)
| 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 | % | |||||||
Page 12 of 12
NYSE: CBZ ● www.cbiz.com ● Twitter @cbz