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Press release |
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 | ||||||||||||||||
| SEPTEMBER 30, | ||||||||||||||||
| 2007 | % | 2006 (1) | % | |||||||||||||
Revenue |
$ | 151,718 | 100.0 | % | $ | 137,116 | 100.0 | % | ||||||||
Operating expenses |
134,787 | 88.8 | % | 121,739 | 88.8 | % | ||||||||||
Gross margin |
16,931 | 11.2 | % | 15,377 | 11.2 | % | ||||||||||
Corporate general and administrative expense |
6,370 | 4.2 | % | 5,568 | 4.1 | % | ||||||||||
Depreciation and amortization expense |
3,823 | 2.6 | % | 4,077 | 2.9 | % | ||||||||||
Operating income |
6,738 | 4.4 | % | 5,732 | 4.2 | % | ||||||||||
Other income (expense): |
||||||||||||||||
Interest expense |
(981 | ) | -0.6 | % | (842 | ) | -0.6 | % | ||||||||
Gain on sale of operations, net |
20 | 0.0 | % | 7 | 0.0 | % | ||||||||||
Other income, net (3) |
746 | 0.5 | % | 936 | 0.7 | % | ||||||||||
Total other income (expense), net |
(215 | ) | -0.1 | % | 101 | 0.1 | % | |||||||||
Income from continuing operations before income tax expense |
6,523 | 4.3 | % | 5,833 | 4.3 | % | ||||||||||
Income tax expense |
2,598 | 2,258 | ||||||||||||||
Income from continuing operations |
3,925 | 2.6 | % | 3,575 | 2.6 | % | ||||||||||
Loss from operations of discontinued businesses, net of tax |
(302 | ) | (5 | ) | ||||||||||||
Gain on disposal of discontinued businesses, net of tax |
1,023 | 553 | ||||||||||||||
Net income |
$ | 4,646 | 3.1 | % | $ | 4,123 | 3.0 | % | ||||||||
Diluted earnings per share: |
||||||||||||||||
Continuing operations |
$ | 0.06 | $ | 0.05 | ||||||||||||
Discontinued operations |
0.01 | 0.01 | ||||||||||||||
Net income |
$ | 0.07 | $ | 0.06 | ||||||||||||
Diluted weighted average common shares outstanding |
66,083 | 70,421 | ||||||||||||||
Other data from continuing operations: |
||||||||||||||||
EBIT (2) |
$ | 7,484 | $ | 6,668 | ||||||||||||
EBITDA (2) |
$ | 11,307 | $ | 10,745 | ||||||||||||
| (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 $372 and $473 of net gains attributable to assets held in the Companys deferred compensation plan for the three months ended September 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. |
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| NINE MONTHS ENDED | ||||||||||||||||
| SEPTEMBER 30, | ||||||||||||||||
| 2007 | % | 2006 (1) | % | |||||||||||||
Revenue |
$ | 487,616 | 100.0 | % | $ | 446,269 | 100.0 | % | ||||||||
Operating expenses |
412,450 | 84.6 | % | 376,958 | 84.5 | % | ||||||||||
Gross margin |
75,166 | 15.4 | % | 69,311 | 15.5 | % | ||||||||||
Corporate general and administrative expense |
20,466 | 4.2 | % | 19,633 | 4.4 | % | ||||||||||
Depreciation and amortization expense |
11,779 | 2.4 | % | 11,868 | 2.6 | % | ||||||||||
Operating income |
42,921 | 8.8 | % | 37,810 | 8.5 | % | ||||||||||
Other income (expense): |
||||||||||||||||
Interest expense |
(3,372 | ) | -0.7 | % | (2,499 | ) | -0.6 | % | ||||||||
Gain on sale of operations, net |
125 | 0.0 | % | 14 | 0.0 | % | ||||||||||
Other income, net (3) |
3,342 | 0.7 | % | 2,667 | 0.6 | % | ||||||||||
Total other income, net |
95 | 0.0 | % | 182 | 0.0 | % | ||||||||||
Income from continuing operations before income tax expense |
43,016 | 8.8 | % | 37,992 | 8.5 | % | ||||||||||
Income tax expense |
17,714 | 15,219 | ||||||||||||||
Income from continuing operations |
25,302 | 5.2 | % | 22,773 | 5.1 | % | ||||||||||
Loss from operations of discontinued businesses, net of tax |
(1,275 | ) | (1,912 | ) | ||||||||||||
Gain on disposal of discontinued businesses, net of tax |
4,713 | 506 | ||||||||||||||
Net income |
$ | 28,740 | 5.9 | % | $ | 21,367 | 4.8 | % | ||||||||
Diluted earnings (loss) per share: |
||||||||||||||||
Continuing operations |
$ | 0.38 | $ | 0.31 | ||||||||||||
Discontinued operations |
0.05 | (0.02 | ) | |||||||||||||
Net income |
$ | 0.43 | $ | 0.29 | ||||||||||||
Diluted weighted average common shares outstanding |
66,845 | 74,406 | ||||||||||||||
Other data from continuing operations: |
||||||||||||||||
EBIT (2) |
$ | 46,263 | $ | 40,477 | ||||||||||||
EBITDA (2) |
$ | 58,042 | $ | 52,345 | ||||||||||||
| (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 $1,885 and $673 of net gains attributable to assets held in the Companys deferred compensation plan for the nine months ended September 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. |
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| THREE MONTHS ENDED | NINE MONTHS ENDED | |||||||||||||||
| SEPTEMBER 30, | SEPTEMBER 30, | |||||||||||||||
| 2007 | 2006 (3) | 2007 | 2006 (3) | |||||||||||||
Revenue |
||||||||||||||||
Financial Services |
$ | 65,537 | $ | 57,692 | $ | 227,942 | $ | 205,158 | ||||||||
Employee Services |
41,684 | 37,106 | 128,131 | 115,088 | ||||||||||||
Medical Management
Professionals |
32,420 | 29,746 | 94,144 | 88,014 | ||||||||||||
National Practices |
12,077 | 12,572 | 37,399 | 38,009 | ||||||||||||
Total |
$ | 151,718 | $ | 137,116 | $ | 487,616 | $ | 446,269 | ||||||||
Gross margin |
||||||||||||||||
Financial Services |
$ | 6,948 | $ | 5,681 | $ | 44,507 | $ | 39,312 | ||||||||
Employee Services |
8,084 | 6,637 | 27,715 | 24,104 | ||||||||||||
Medical Management
Professionals |
5,399 | 5,491 | 14,609 | 14,938 | ||||||||||||
National Practices |
922 | 1,352 | 3,268 | 4,814 | ||||||||||||
Total (1) |
$ | 16,931 | $ | 15,377 | $ | 75,166 | $ | 69,311 | ||||||||
| SEPTEMBER 30, | DECEMBER 31, | |||||||
| 2007 | 2006 (3) | |||||||
Cash and cash
equivalents |
$ | 21,534 | $ | 12,971 | ||||
Restricted cash |
$ | 16,888 | $ | 17,507 | ||||
Accounts receivable, net |
$ | 121,064 | $ | 104,294 | ||||
Current assets before
funds held for clients |
$ | 175,278 | $ | 168,575 | ||||
Funds held for clients |
$ | 71,846 | $ | 84,441 | ||||
Goodwill and other
intangible assets, net |
$ | 214,985 | $ | 205,917 | ||||
Total assets |
$ | 524,956 | $ | 518,283 | ||||
Current liabilities
before client fund
obligations |
$ | 84,995 | $ | 91,444 | ||||
Client fund obligations |
$ | 71,846 | $ | 84,441 | ||||
Convertible notes |
$ | 100,000 | $ | 100,000 | ||||
Bank debt |
$ | 12,000 | $ | | ||||
Total liabilities |
$ | 301,501 | $ | 301,705 | ||||
Treasury stock |
$ | (207,495 | ) | $ | (176,773 | ) | ||
Total stockholders equity |
$ | 223,455 | $ | 216,578 | ||||
Debt to equity (4) |
50.1 | % | 46.2 | % | ||||
Days sales outstanding
from continuing
operations (2) |
72 | 66 | ||||||
Shares outstanding |
64,538 | 67,416 | ||||||
Basic weighted average
common shares outstanding
|
65,437 | 71,004 | ||||||
Diluted weighted average
common shares outstanding
|
66,845 | 73,052 | ||||||
| (1) | Includes operating expenses recorded by corporate and not directly allocated to the business units of $4,422 and $3,784 for the three months ended September 30, 2007 and 2006, and $14,933 and $13,857 for the nine months ended September 30, 2007 and 2006, respectively. | |
| (2) | At September 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. | |
| (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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