Exhibit 99.1
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 |
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 |
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
Page 1 of 5
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 Companys 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 Companys results of operations and the Companys sensitivity to revenue
fluctuations that could result in fluctuations in the market price for shares of the Companys
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.
Page 2 of 5
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)
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|
| |
|
THREE MONTHS ENDED |
|
| |
|
JUNE 30, |
|
| |
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2007 |
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|
% |
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|
2006 (1) |
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|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Revenue |
|
$ |
156,946 |
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|
100.0 |
% |
|
$ |
146,250 |
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|
100.0 |
% |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
135,827 |
|
|
|
86.5 |
% |
|
|
123,851 |
|
|
|
84.7 |
% |
|
|
|
|
|
|
|
|
|
|
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Gross margin |
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|
21,119 |
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|
13.5 |
% |
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|
22,399 |
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|
|
15.3 |
% |
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|
|
|
|
|
|
|
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|
|
|
|
|
|
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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 |
% |
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|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
Operating income |
|
|
10,610 |
|
|
|
6.8 |
% |
|
|
11,117 |
|
|
|
7.6 |
% |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
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|
(1,415 |
) |
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-0.9 |
% |
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(865 |
) |
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|
-0.6 |
% |
Gain on sale of operations, net |
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|
10 |
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|
0.0 |
% |
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|
7 |
|
|
|
0.0 |
% |
Other income, net (3) |
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|
1,989 |
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|
|
1.2 |
% |
|
|
496 |
|
|
|
0.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
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|
Total other income (expense), net |
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|
584 |
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|
0.3 |
% |
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|
(362 |
) |
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|
-0.2 |
% |
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|
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|
|
|
|
|
|
|
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|
|
|
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Income from continuing operations before income tax expense |
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11,194 |
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|
7.1 |
% |
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|
10,755 |
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|
7.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Income tax expense |
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|
4,754 |
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|
|
|
|
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|
4,405 |
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Income from continuing operations |
|
|
6,440 |
|
|
|
4.1 |
% |
|
|
6,350 |
|
|
|
4.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations of discontinued businesses, net of tax . |
|
|
(493 |
) |
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|
|
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|
(910 |
) |
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|
Gain (loss) on disposal of discontinued businesses, net of tax |
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|
3,883 |
|
|
|
|
|
|
|
(214 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
9,830 |
|
|
|
6.3 |
% |
|
$ |
5,226 |
|
|
|
3.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Diluted earnings (loss) per share: |
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|
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|
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|
|
|
|
|
|
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 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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
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).
(3) Includes $1,201 and ($332) of net gains (losses) attributable to assets held in the
Companys deferred compensation plan for the three months ended June 30, 2007 and 2006,
respectively. These gains (losses) do not impact the Companys 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.
Page 3 of 5
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
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).
(3) Includes $1,513 and $200 of net gains attributable to assets held in the Companys deferred
compensation plan for the six months ended June 30, 2007 and 2006, respectively. These gains do not
impact the Companys 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.
Page 4 of 5
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 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 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.
Page 5 of 5
6050 Oak Tree Boulevard South Suite 500 Cleveland, OH 44131 Phone (216) 447-9000 Fax (216) 447-9007