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FOR IMMEDIATE RELEASE
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CONTACT: | Ware Grove | ||
| Chief Financial Officer | ||||
| -or- | ||||
| Lori Novickis | ||||
| Director, Corporate Relations | ||||
| CBIZ, Inc. | ||||
| Cleveland, Ohio | ||||
| (216) 447-9000 |
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| THREE MONTHS ENDED | ||||||||||||||||
| JUNE 30, | ||||||||||||||||
| 2006 | % | 2005(1) | % | |||||||||||||
Revenue |
$ | 152,758 | 100.0 | % | $ | 139,688 | 100.0 | % | ||||||||
Operating expenses |
130,775 | 85.6 | % | 121,006 | 86.6 | % | ||||||||||
Gross margin |
21,983 | 14.4 | % | 18,682 | 13.4 | % | ||||||||||
Corporate general and administrative expense |
7,333 | 4.8 | % | 7,449 | 5.3 | % | ||||||||||
Depreciation and amortization expense |
4,169 | 2.7 | % | 3,783 | 2.8 | % | ||||||||||
Operating income |
10,481 | 6.9 | % | 7,450 | 5.3 | % | ||||||||||
Other income (expense): |
||||||||||||||||
Interest expense |
(867 | ) | -0.6 | % | (845 | ) | -0.6 | % | ||||||||
Gain on sale of operations, net |
7 | 0.0 | % | | 0.0 | % | ||||||||||
Other income, net |
522 | 0.3 | % | 757 | 0.6 | % | ||||||||||
Total other expense, net |
(338 | ) | -0.3 | % | (88 | ) | 0.0 | % | ||||||||
Income from continuing operations before income tax expense |
10,143 | 6.6 | % | 7,362 | 5.3 | % | ||||||||||
Income tax expense |
4,174 | 2,694 | ||||||||||||||
Income from continuing operations |
5,969 | 3.9 | % | 4,668 | 3.3 | % | ||||||||||
Loss from operations of discontinued businesses, net of tax |
(529 | ) | (1,342 | ) | ||||||||||||
Loss on disposal of discontinued businesses, net of tax |
(214 | ) | | |||||||||||||
Net income |
$ | 5,226 | 3.4 | % | $ | 3,326 | 2.4 | % | ||||||||
Diluted earnings (loss) per share: |
||||||||||||||||
Continuing operations |
$ | 0.08 | $ | 0.06 | ||||||||||||
Discontinued operations |
(0.01 | ) | (0.02 | ) | ||||||||||||
Net income |
$ | 0.07 | $ | 0.04 | ||||||||||||
Diluted weighted average common shares outstanding |
75,421 | 76,947 | ||||||||||||||
Other data from continuing operations: |
||||||||||||||||
EBIT (2) |
$ | 11,003 | $ | 8,207 | ||||||||||||
EBITDA (2) |
$ | 15,172 | $ | 11,990 | ||||||||||||
| (1) | Certain amounts in the 2005 financial data have been reclassified to conform to the current year presentation. | |
| (2) | EBIT represents income from continuing operations before income taxes, interest expense and gain on divested operations. EBITDA represents EBIT as defined above before depreciation and amortization expense. 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 Companys 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 (GAAP). |
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| SIX MONTHS ENDED | ||||||||||||||||
| JUNE 30, | ||||||||||||||||
| 2006 | % | 2005(1) | % | |||||||||||||
Revenue |
$ | 323,819 | 100.0 | % | $ | 294,844 | 100.0 | % | ||||||||
Operating expenses |
269,506 | 83.2 | % | 248,021 | 84.1 | % | ||||||||||
Gross margin |
54,313 | 16.8 | % | 46,823 | 15.9 | % | ||||||||||
Corporate general and administrative expense |
14,065 | 4.3 | % | 13,870 | 4.7 | % | ||||||||||
Depreciation and amortization expense |
8,240 | 2.6 | % | 7,677 | 2.6 | % | ||||||||||
Operating income |
32,008 | 9.9 | % | 25,276 | 8.6 | % | ||||||||||
Other income (expense): |
||||||||||||||||
Interest expense |
(1,659 | ) | -0.5 | % | (1,626 | ) | -0.6 | % | ||||||||
Gain on sale of operations, net |
7 | 0.0 | % | | 0.0 | % | ||||||||||
Other income, net |
1,811 | 0.5 | % | 1,145 | 0.4 | % | ||||||||||
Total other income (expense), net |
159 | 0.0 | % | (481 | ) | -0.2 | % | |||||||||
Income from continuing operations before income tax expense |
32,167 | 9.9 | % | 24,795 | 8.4 | % | ||||||||||
Income tax expense |
12,962 | 9,919 | ||||||||||||||
Income from continuing operations |
19,205 | 5.9 | % | 14,876 | 5.0 | % | ||||||||||
Loss from operations of discontinued businesses, net of tax |
(1,914 | ) | (3,304 | ) | ||||||||||||
Loss on disposal of discontinued businesses, net of tax |
(47 | ) | (109 | ) | ||||||||||||
Net income |
$ | 17,244 | 5.3 | % | $ | 11,463 | 3.9 | % | ||||||||
Diluted earnings (loss) per share: |
||||||||||||||||
Continuing operations |
$ | 0.25 | $ | 0.19 | ||||||||||||
Discontinued operations |
(0.02 | ) | (0.04 | ) | ||||||||||||
Net income |
$ | 0.23 | $ | 0.15 | ||||||||||||
Diluted weighted average common shares outstanding |
76,409 | 77,338 | ||||||||||||||
Other data from continuing operations: |
||||||||||||||||
EBIT (2) |
$ | 33,819 | $ | 26,421 | ||||||||||||
EBITDA (2) |
$ | 42,059 | $ | 34,098 | ||||||||||||
| (1) | Certain amounts in the 2005 financial data have been reclassified to conform to the current year presentation. | |
| (2) | EBIT represents income from continuing operations before income taxes, interest expense and gain on divested operations. EBITDA represents EBIT as defined above before depreciation and amortization expense. 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 Companys 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 (GAAP). |
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| THREE MONTHS ENDED | SIX MONTHS ENDED | |||||||||||||||
| JUNE 30, | JUNE 30, | |||||||||||||||
| 2006 | 2005 (3) | 2006 | 2005 (3) | |||||||||||||
Revenue |
||||||||||||||||
Financial Services |
$ | 67,098 | $ | 63,131 | $ | 156,546 | $ | 146,953 | ||||||||
Employee Services |
41,617 | 38,496 | 83,568 | 76,324 | ||||||||||||
Medical Management Professionals |
30,046 | 24,281 | 58,268 | 47,455 | ||||||||||||
National Practices |
13,997 | 13,780 | 25,437 | 24,112 | ||||||||||||
Total |
$ | 152,758 | $ | 139,688 | $ | 323,819 | $ | 294,844 | ||||||||
Gross margin |
||||||||||||||||
Financial Services |
$ | 8,690 | $ | 7,856 | $ | 34,285 | $ | 32,175 | ||||||||
Employee Services |
8,751 | 8,046 | 17,192 | 14,443 | ||||||||||||
Medical Management Professionals |
5,909 | 4,590 | 9,447 | 8,136 | ||||||||||||
National Practices |
2,746 | 2,133 | 3,462 | 2,237 | ||||||||||||
Total (1) |
$ | 21,983 | $ | 18,682 | $ | 54,313 | $ | 46,823 | ||||||||
| JUNE 30, | DECEMBER 31, | |||||||
| 2006 | 2005 (3) | |||||||
Cash and cash equivalents |
$ | 13,574 | $ | 8,909 | ||||
Restricted cash |
$ | 12,046 | $ | 9,873 | ||||
Accounts receivable, net |
$ | 118,936 | $ | 98,390 | ||||
Current assets before funds held for clients |
$ | 158,961 | $ | 144,641 | ||||
Funds held for clients |
$ | 56,576 | $ | 65,669 | ||||
Goodwill and other intangible assets, net |
$ | 207,634 | $ | 184,462 | ||||
Total assets. |
$ | 487,891 | $ | 454,584 | ||||
Current liabilities before client fund obligations |
$ | 84,164 | $ | 87,785 | ||||
Client fund obligations |
$ | 56,576 | $ | 65,669 | ||||
Convertible notes |
$ | 100,000 | $ | | ||||
Bank debt |
$ | | $ | 32,200 | ||||
Total liabilities |
$ | 261,432 | $ | 199,923 | ||||
Treasury stock |
$ | (159,073 | ) | $ | (102,317 | ) | ||
Total stockholders equity |
$ | 226,459 | $ | 254,661 | ||||
Debt to equity |
44.2 | % | 12.6 | % | ||||
Days sales outstanding from continuing operations (2) |
72 | 65 | ||||||
Shares outstanding |
69,358 | 73,822 | ||||||
Basic weighted average common shares outstanding |
74,012 | 74,448 | ||||||
Diluted weighted average common shares outstanding |
76,409 | 76,827 | ||||||
| (1) | Includes operating expenses recorded by corporate and not directly allocated to the business units of $4,113 and $3,943 for the three months ended June 30, 2006 and 2005 and $10,073 and $10,168 for the six months ended June 30, 2006 and 2005, respectively. | |
| (2) | Days sales outstanding at June 30, 2005, was 75 days. Days sales outstanding (DSO) 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 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 Companys 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 (GAAP). | |
| (3) | Certain amounts in the 2005 financial data have been reclassified to conform to the current year presentation. |
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