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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Note Applicable
(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):
Securities registered pursuant to Section 12(b) of the Act:
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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).
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item 2.02 Results of Operations and Financial Condition
On February 17, 2022 , CBIZ, Inc. (the "Company") issued a press release announcing its financial results for the three and twelve months ended December 31, 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 February 17, 2022 , announcing its financial results for the three and twelve months ended December 31, 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: February 18, 2022
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 FOURTH-QUARTER AND FULL-YEAR 2021 RESULTS
FOURTH-QUARTER HIGHLIGHTS:
•TOTAL REVENUE UP 15.0%; SAME-UNIT REVENUE UP 9.4%
FULL-YEAR HIGHLIGHTS:
•TOTAL REVENUE UP 14.6%; SAME-UNIT REVENUE UP 7.7%
•GAAP EPS DOWN 7.0%
•ADJUSTED EPS UP 16.9%
•ADJUSTED EBITDA UP 12.4%
2022 OUTLOOK:
•TOTAL REVENUE UP 19% TO 21%
•GAAP EPS UP 43% TO 46%; $1.89 TO $1.93
•ADJUSTED EPS UP 20% TO 22%; $1.99 TO $2.03
CLEVELAND (February 17, 2022) – CBIZ, Inc., (NYSE: CBZ) (“CBIZ”, or the “Company”), a leading provider of financial, insurance and advisory services, today announced fourth-quarter and full-year results for the period ended December 31, 2021.
For the 2021 fourth quarter, CBIZ recorded revenue of $242.8 million, an increase of $31.7 million, or 15.0%, compared with $211.1 million reported for the same period in 2020. Acquired operations, net of divestitures, contributed $11.9 million, or 5.6%, to fourth-quarter 2021 revenue growth. Same-unit revenue increased by $19.8 million, or 9.4%, for the quarter, compared with the same period a year ago. Loss from continuing operations was $9.6 million, in the 2021 fourth quarter, compared with a loss of $0.1 million for the same period a year ago.
For the full year ended December 31, 2021, CBIZ recorded revenue of $1,104.9 million, an increase of $141.0 million, or 14.6%, over the $963.9 million recorded for the same period in 2020. Acquisitions, net of
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divestitures, contributed $66.7 million, or 6.9%, to revenue growth in the twelve months ended December 31, 2021. Same-unit revenue increased by $74.3 million, or 7.7%, compared with the same period a year ago. Income from continuing operations was $70.9 million, or $1.32 per diluted share, for the twelve months ended December 31, 2021, compared with $78.3 million, or $1.42 per diluted share, for the same period a year ago.
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 of 2021 was $30.5 million. In addition, on June 1, 2021, the Company divested a small, non-core wholesale insurance business and recorded a pretax gain of $6.3 million on the sale. Eliminating the impact of these non-recurring items, adjusted diluted EPS for the twelve months of 2021 increased by 16.9% to $1.66, compared with $1.42 reported a year ago. Adjusted EBITDA increased by 12.4% to $148.5 million, compared with $132.1 million in 2020.
As previously announced on January 10, 2022, the Company acquired Marks Paneth, a New York City-based accounting firm. This transaction is expected to add approximately $138.0 million of revenue to CBIZ in 2022. Eliminating the impact of one-time transaction-related costs and first year integration costs, contribution to earnings per share in 2022 is expected to be approximately $0.10, growing to a range of $0.20 to $0.25 per share by 2025, after all remaining transition-related integration costs are addressed. On a GAAP reported basis, the transaction is expected to have minimal impact on earnings per share in 2022, but is expected to be significantly accretive after first-year transaction and integration costs are incurred.
Reconciliations for adjusted diluted EPS and adjusted EBITDA to the most directly comparable GAAP measures can be found in the tables of this release.
For the full year ended December 31, 2021, the Company repurchased a total of 3.0 million shares of its common stock on the open market. The balance outstanding on the Company’s unsecured credit facility on December 31, 2021, was $155.3 million with $234.5 million of unused borrowing capacity.
Jerry Grisko, CBIZ President and Chief Executive Officer, said, “2021 was a year to be celebrated at CBIZ. As we marked our 25-year anniversary, I am proud to report exceptional results for the past year with record growth across nearly every major service line. In addition to continued strong demand for the core, essential, services that we provide to our clients regardless of business climate, we experienced very high demand for our more specialty and project-based advisory services as well, an increasing trend that demonstrates the optimistic outlook of our clients as they continue to focus on growth.”
“2021 also proved to be an important year for our strategic acquisition activity as we capitalized on a full and expanding pipeline of opportunities starting early in the year,” Grisko continued. “We closed six acquisitions adding approximately $75 million in annualized revenue. While the seasonal nature of a number of these mid-year acquisitions negatively impacted fourth quarter margins in 2021, they will be very accretive in 2022 and beyond. Our momentum with M&A continued with our recent acquisition of Marks Paneth in early January, adding more than 600 professionals to our team and approximately $138 million in annual revenue.”
“Coming off such a strong year, and with the completion of our latest acquisition, we expect another year of solid growth in 2022,” Grisko concluded.
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2022 Outlook
•The Company expects revenue to grow within a range of 19% to 21% over the prior year.
•Although a number of factors may impact the tax rate, the Company expects an effective tax rate of approximately 25%.
•The Company expects a weighted average fully diluted share count of approximately 53.0 to 53.5 million shares.
•The Company expects GAAP fully diluted earnings per share from continuing operations to grow within a range of 43% to 46%, to $1.89 to $1.93 per share over the $1.32 per share reported for 2021.
•The Company expects adjusted fully diluted earnings per share from continuing operations to grow within a range of 20% to 22%, to $1.99 to $2.03 per share over the adjusted $1.66 per share reported for 2021.
Conference Call
CBIZ will host a conference call at 11:00 a.m. (ET) today to discuss its results. The call will be webcast and an archived replay will be available at https://cbiz.gcs-web.com/investor-overview. Participants may register at https://dpregister.com/sreg/10163760/f162c4adc0.
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 32 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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CBIZ, INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
THREE MONTHS ENDED DECEMBER 31, 2021 AND 2020
(In thousands, except percentages and per share data)
| 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 | ||||||||||||||||||||||
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(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 in "Other income, net." The deferred compensation plan has no impact on "Loss from continuing operations before income tax benefit."
Income and expenses related to the deferred compensation plan for the three months ended December 31, 2021, and 2020 are as follows (in thousands):
| 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 | % | ||||||||||||||||||||
Excluding the impact of the above-mentioned income and expenses related to the deferred compensation plan, the operating results for the three months ended December 31, 2021, and 2020 are as follows (in thousands):
| 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) | % | |||||||||||||||||||||||||||||||||||||
(2)Included in "Other income, net" for the three months ended December 31, 2021 and 2020, is expense of $0.8 million and income of $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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CBIZ, INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
TWELVE MONTHS ENDED DECEMBER 31, 2021 AND 2020
(In thousands, except percentages and per share data)
| 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 | ||||||||||||||||||||||
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(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 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 twelve months ended December 31, 2021, and 2020 are as follows (in thousands):
| 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 | % | ||||||||||||||||||||
Excluding the impact of the above-mentioned income and expenses related to the deferred compensation plan, the operating results for the twelve months ended December 31, 2021, and 2020 are as follows (in thousands):
| 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 | % | |||||||||||||||||||||||||||||||||||||
(2)Included in "Other income, net" for the twelve months ended December 31, 2021 and 2020, is expense of $2.4 million and income of $0.6 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 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 | ||||||||||||||||||
(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, 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 in "Operating expenses" and “Corporate, general and administrative expenses,” and offset in "Other income, net."
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CBIZ, INC.
SELECT CASH FLOW DATA
(In thousands)
| 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 | ||||||||||
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CBIZ, INC.
SELECT FINANCIAL DATA AND RATIOS
(In thousands)
| 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 | ||||||||||||
(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.
Page 10 of 12
NYSE: CBZ ● www.cbiz.com ● Twitter @cbz
CBIZ, INC.
GAAP RECONCILIATION
(Loss) Income from Continuing Operations to Adjusted EBITDA (1)
(In thousands)
| 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 | |||||||||||||||
(1)CBIZ reports its financial results in accordance with GAAP. This table reconciles Adjusted EBITDA to the most directly comparable GAAP financial measure, "(Loss) 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
(Loss) Income and Diluted Earnings Per Share (“EPS”) from Continuing Operations to Adjusted (Loss) Income from Continuing Operations and EPS(1)
(In thousands)
| 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 | |||||||||||||||
(1)CBIZ reports its financial results in accordance with GAAP. This table reconciles Adjusted (Loss) Income and Adjusted EPS to the most directly comparable GAAP financial measures, “(Loss) Income from continuing operations” and "Diluted earnings per share from continuing operations." Adjusted (Loss) 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 (Loss) Income and Adjusted EPS, 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 2022 EPS from Continuing Operations Guidance to Full Year 2022 Adjusted Diluted EPS
(In thousands)
| 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 | % | |||||||
Page 12 of 12
NYSE: CBZ ● www.cbiz.com ● Twitter @cbz