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 2007 RESULTS
SECOND-QUARTER REVENUE UP 7.3%; EPS FROM CONTINUING OPERATIONS UP 25%
FIRST-HALF REVENUE GROWS 8.7%; EPS FROM CONTINUING OPERATIONS UP 28%
Cleveland, Ohio (August 7, 2007)—CBIZ, Inc. (NYSE: CBZ) today announced second-quarter and first-half results for the period ended June 30, 2007.
CBIZ reported revenue of $156.9 million for the second quarter ended June 30, 2007, an increase of 7.3% over the $146.3 million reported for the second quarter of 2006. Same-unit revenue increased by 6.5%, or by $9.5 million. Revenue from newly acquired operations, net of divestitures, contributed $1.2 million to revenue growth in the second quarter. CBIZ reported income from continuing operations for the 2007 second quarter of $6.4 million, or $0.10 per diluted share, compared with $6.4 million, or $0.08 per diluted share in the second quarter of 2006.
During the first half of 2007, CBIZ repurchased approximately 3.5 million shares of its common stock at a cost of approximately $24.5 million.
For the six-month period ended June 30, 2007, CBIZ reported revenue of $335.9 million, an increase of 8.7%, or $26.7 million over the $309.2 million recorded for the comparable six-month period a year ago. Same-unit revenue increased by 7.5%, or $23.3 million, for the first six months of 2007 compared to the same period a year ago. Acquisitions, net of divestitures, contributed $3.5 million to revenue growth for the 2007 first half. Income from continuing operations was $21.4 million for the first six months of 2007, or $0.32 per diluted share, compared with $19.2 million for the first six months of 2006, or $0.25 per diluted share.
“This quarter represents the sixteenth consecutive quarter of same-unit revenue growth,” commented Steven L. Gerard, Chairman and CEO. “We are happy with the successful integration of the anesthesiology medical management firm, Ichthus Consulting, which we acquired during the second quarter. In addition, we are pleased to have leveraged our first-half revenue growth of 8.7% into a 28% growth in our fully diluted earnings per share from continuing operations. We are on track to accomplish our 2007 goals to
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6050 Oak Tree Boulevard South • Suite 500 • Cleveland, OH 44131 • Phone (216) 447-9000 • Fax (216) 447-9007

 


 

grow revenue in a range of 8% to 10% and to achieve an increase in earnings per share from continuing operations of at least 20%, compared with the $0.35 per share reported for 2006,” 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 1-866-418-3599 several minutes before 11:00 a.m. (ET). If you are dialing from outside the United States, dial 1-847-619-6341. A replay of the call will be available starting at 1:00 p.m. (ET), August 7 through midnight (ET), August 10, 2007. 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 18586033. 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.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Risk factors that could cause actual results to differ include the risk of a decline in the current trend to outsource business services that may have a material adverse effect on the Company’s results of operations and the Company’s sensitivity to revenue fluctuations that could result in fluctuations in the market price for shares of the Company’s common stock. Additional risk factors are discussed in our Report on Form 10-K for the year ended December 31, 2006, and the reader is directed to these statements for a further discussion of important factors that could cause actual results to differ materially from those in the forward-looking statements.
For further information regarding CBIZ, call our Investor Relations Office at (216) 447-9000 or visit our web site at www.cbiz.com.
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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 JUNE 30, 2007 AND 2006
(In thousands, except percentages and per share data)
                                 
    THREE MONTHS ENDED  
    JUNE 30,  
    2007     %     2006 (1)     %  
 
                               
Revenue
  $ 156,946       100.0 %   $ 146,250       100.0 %
 
                               
Operating expenses
    135,827       86.5 %     123,851       84.7 %
 
                       
 
                               
Gross margin
    21,119       13.5 %     22,399       15.3 %
 
                               
Corporate general and administrative expense
    6,508       4.1 %     7,333       5.0 %
Depreciation and amortization expense
    4,001       2.6 %     3,949       2.7 %
 
                       
 
                               
Operating income
    10,610       6.8 %     11,117       7.6 %
Other income (expense):
                               
Interest expense
    (1,415 )     -0.9 %     (865 )     -0.6 %
Gain on sale of operations, net
    10       0.0 %     7       0.0 %
Other income, net (3)
    1,989       1.2 %     496       0.4 %
 
                       
Total other income (expense), net
    584       0.3 %     (362 )     -0.2 %
 
                               
Income from continuing operations before income tax expense
    11,194       7.1 %     10,755       7.4 %
 
                               
Income tax expense
    4,754               4,405          
 
                       
 
                               
Income from continuing operations
    6,440       4.1 %     6,350       4.3 %
 
                               
Loss from operations of discontinued businesses, net of tax .
    (493 )             (910 )        
Gain (loss) on disposal of discontinued businesses, net of tax
    3,883               (214 )        
 
                       
Net income
  $ 9,830       6.3 %   $ 5,226       3.6 %
 
                           
 
                               
Diluted earnings (loss) per share:
                               
Continuing operations
  $ 0.10             $ 0.08          
Discontinued operations
    0.04               (0.01 )        
 
                           
Net income
  $ 0.15             $ 0.07          
 
                           
Diluted weighted average common shares outstanding
    66,459               75,421          
 
                               
Other data from continuing operations:
                               
EBIT (2)
  $ 12,599             $ 11,613          
EBITDA (2)
  $ 16,600             $ 15,562          
(1) Certain amounts in the 2006 financial data have been reclassified to conform to the current year presentation to reflect the impact of discontinued operations.
(2) EBIT represents income from continuing operations before income taxes, interest expense, and gain on the sale of 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 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 (GAAP).
(3) Includes $1,201 and ($332) of net gains (losses) attributable to assets held in the Company’s deferred compensation plan for the three months ended June 30, 2007 and 2006, respectively. These gains (losses) do not impact the Company’s “income from continuing operations before income tax expense” as they are directly offset by compensation to the Plan participants. Compensation is included in “operating expenses” and “corporate general and administrative expense.”
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6050 Oak Tree Boulevard South • Suite 500 • Cleveland, OH 44131 • Phone (216) 447-9000 • Fax (216) 447-9007

 


 

CBIZ, INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
SIX MONTHS ENDED JUNE 30, 2007 AND 2006
(In thousands, except percentages and per share data)
                                 
    SIX MONTHS ENDED  
    JUNE 30,  
    2007     %     2006 (1)     %  
 
                               
Revenue
  $ 335,898       100.0 %   $ 309,153       100.0 %
 
                               
Operating expenses
    277,663       82.7 %     255,219       82.6 %
 
                       
 
                               
Gross margin
    58,235       17.3 %     53,934       17.4 %
 
                               
Corporate general and administrative expense
    14,096       4.2 %     14,065       4.5 %
Depreciation and amortization expense
    7,956       2.3 %     7,791       2.5 %
 
                       
 
                               
Operating income
    36,183       10.8 %     32,078       10.4 %
 
                               
Other income (expense):
                               
Interest expense
    (2,391 )     -0.7 %     (1,657 )     -0.5 %
Gain on sale of operations, net
    105       0.0 %     7       0.0 %
Other income, net (3)
    2,596       0.8 %     1,731       0.5 %
 
                       
Total other income, net
    310       0.1 %     81       0.0 %
 
                               
Income from continuing operations before income tax expense
    36,493       10.9 %     32,159       10.4 %
 
                               
Income tax expense
    15,116               12,961          
 
                       
 
                               
Income from continuing operations
    21,377       6.4 %     19,198       6.2 %
 
                               
Loss from operations of discontinued businesses, net of tax
    (973 )             (1,907 )        
Gain (loss) on disposal of discontinued businesses, net of tax
    3,690               (47 )        
 
                       
Net income
  $ 24,094       7.2 %   $ 17,244       5.6 %
 
                           
 
                               
Diluted earnings (loss) per share:
                               
Continuing operations
  $ 0.32             $ 0.25          
Discontinued operations
    0.04               (0.03 )        
 
                           
Net income
  $ 0.36             $ 0.23          
 
                           
 
                               
Diluted weighted average common shares outstanding
    67,236               76,409          
 
                               
Other data from continuing operations:
                               
EBIT (2)
  $ 38,779             $ 33,809          
EBITDA (2)
  $ 46,735             $ 41,600          
(1) Certain amounts in the 2006 financial data have been reclassified to conform to the current year presentation to reflect the impact of discontinued operations.
(2) EBIT represents income from continuing operations before income taxes, interest expense, and gain on the sale of 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 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 (GAAP).
(3) Includes $1,513 and $200 of net gains attributable to assets held in the Company’s deferred compensation plan for the six months ended June 30, 2007 and 2006, respectively. These gains do not impact the Company’s “income from continuing operations before income tax expense” as they are directly offset by compensation to the Plan participants. Compensation is included in “operating expenses” and “corporate general and administrative expense.”
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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 JUNE 30, 2007 AND 2006
(In thousands, except percentages and per share data)
                                 
    THREE MONTHS ENDED     SIX MONTHS ENDED  
    JUNE 30,     JUNE 30,  
    2007     2006 (3)     2007     2006 (3)  
 
                               
Revenue
                               
Financial Services
  $ 69,675     $ 63,365     $ 162,405     $ 147,466  
Employee Services
    42,142       38,842       86,447       77,982  
Medical Management Professionals
    32,116       30,046       61,724       58,268  
National Practices
    13,013       13,997       25,322       25,437  
 
                               
Total
  $ 156,946     $ 146,250     $ 335,898     $ 309,153  
 
                               
Gross margin
                               
Financial Services
  $ 10,243     $ 8,972     $ 37,559     $ 33,631  
Employee Services
    8,977       8,885       19,631       17,467  
Medical Management Professionals
    5,477       5,909       9,210       9,447  
National Practices
    1,522       2,746       2,346       3,462  
 
                               
Total (1)
  $ 21,119     $ 22,399     $ 58,235     $ 53,934  
SELECT BALANCE SHEET DATA AND RATIOS
                 
    JUNE 30,     DECEMBER 31,  
    2007     2006 (3)  
 
               
Cash and cash equivalents
  $ 5,683     $ 12,971  
Restricted cash
  $ 16,014     $ 17,507  
Accounts receivable, net
  $ 124,295     $ 104,294  
Current assets before funds held for clients
  $ 171,394     $ 168,831  
Funds held for clients
  $ 69,534     $ 84,441  
Goodwill and other intangible assets, net
  $ 215,985     $ 205,661  
 
               
Total assets
  $ 518,578     $ 518,283  
 
               
Current liabilities before client fund obligations
  $ 83,933     $ 91,444  
Client fund obligations
  $ 69,534     $ 84,441  
Convertible notes
  $ 100,000     $ 100,000  
Bank debt
  $ 10,000     $  
 
               
Total liabilities
  $ 295,212     $ 301,705  
 
               
Treasury stock
  $ (201,375 )   $ (176,773 )
 
               
Total stockholders’ equity
  $ 223,366     $ 216,578  
 
               
Debt to equity (4)
    49.2 %     46.2 %
Days sales outstanding from continuing operations (2)
    73       66  
 
               
Shares outstanding
    65,574       67,416  
 
           
Basic weighted average common shares outstanding
    65,740       71,004  
 
           
Diluted weighted average common shares outstanding
    67,236       73,052  
 
           
(1) Includes operating expenses recorded by corporate and not directly allocated to the business units of $5,100 and $4,113 for the three months ended June 30, 2007 and 2006, and $10,511 and $10,073 for the six months ended June 30, 2007 and 2006, respectively.
(2) At June 30, 2006 days sales outstanding (DSO) was 71 days. 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 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 generally accepted accounting principles (GAAP).
(3) Certain amounts in the 2006 financial data have been reclassified to conform to the current year presentation to reflect the impact of discontinued operations.
(4) Ratio is convertible notes and bank debt divided by total equity.
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6050 Oak Tree Boulevard South • Suite 500 • Cleveland, OH 44131 • Phone (216) 447-9000 • Fax (216) 447-9007