21. Quarterly Financial Data (Unaudited)

The following is a summary of the unaudited quarterly results of operations for the years ended December 31, 2013 and 2012 (in thousands, except per share amounts).


	2013
	March 31,			June 30,			September 30,			December 31,
Revenue	$	201,189		$	172,229		$	168,779		$	149,836
Operating expenses		159,389			151,091			150,258			147,992

Gross margin		41,800			21,138			18,521			1,844
Corporate general and administrative		9,984			7,649			8,944			7,821

Operating income (loss)		31,816			13,489			9,577			(5,977	)
Other income (expense):
Interest expense		(4,056	)		(4,145	)		(3,815	)		(3,358	)
Gain on sale of operations, net		18			48			6			7
Other income, net		1,728			515			2,371			3,203

Total other expense, net		(2,310	)		(3,582	)		(1,438	)		(148	)

Income (loss) from continuing operations before income tax expense (benefit)		29,506			9,907			8,139			(6,125	)
Income tax expense (benefit)		12,385			4,287			2,663			(2,897	)

Income (loss) from continuing operations		17,121			5,620			5,476			(3,228	)
Income (loss) from operations of discontinued operations, net of tax		1,159			1,622			569			(812	)
Gain on disposal of discontinued operations, net of tax		23			1,905			56,315			93

Net income (loss)	$	18,303		$	9,147		$	62,360		$	(3,947	)

Earnings (loss) per share:
Basic:
Continuing operations	$	0.35		$	0.11		$	0.11		$	(0.07	)
Discontinued operations		0.02			0.07			1.17			(0.01	)

Net income	$	0.37		$	0.18		$	1.28		$	(0.08	)

Diluted:
Continuing operations	$	0.34		$	0.11		$	0.11		$	(0.07	)
Discontinued operations		0.02			0.07			1.16			(0.01	)

Net income	$	0.37		$	0.18		$	1.27		$	(0.08	)

Basic weighted average common shares		49,417			49,639			48,504			46,981

Diluted weighted average common shares		49,836			49,929			49,003			46,981


	2012
	March 31,			June 30,			September 30,			December 31,
Revenue	$	187,325		$	153,936		$	149,312		$	135,965
Operating expenses		149,172			135,564			136,773			133,977

Gross margin		38,153			18,372			12,539			1,988
Corporate general and administrative		10,545			7,575			7,475			4,615

Operating income (loss)		27,608			10,797			5,064			(2,627	)
Other income (expense):
Interest expense		(3,791	)		(3,831	)		(3,576	)		(3,801	)
Gain on sale of operations, net		2,590			49			21			106
Other income (expense), net		3,365			(884	)		2,542			3,191

Total other income (expense), net		2,164			(4,666	)		(1,013	)		(504	)

Income (loss) from continuing operations before income tax expense (benefit)		29,772			6,131			4,051			(3,131	)
Income tax expense (benefit)		12,487			2,267			1,032			(1,715	)

Income (loss) from continuing operations		17,285			3,864			3,019			(1,416	)
Income from operations of discontinued operations, net of tax		1,478			1,966			2,256			2,604
Gain on disposal of discontinued operations, net of tax		22			18			32			18

Net income	$	18,785		$	5,848		$	5,307		$	1,206

Earnings (loss) per share:
Basic:
Continuing operations	$	0.35		$	0.08		$	0.06		$	(0.03	)
Discontinued operations		0.03			0.04			0.05			0.05

Net income	$	0.38		$	0.12		$	0.11		$	0.02

Diluted:
Continuing operations	$	0.35		$	0.08		$	0.06		$	(0.03	)
Discontinued operations		0.03			0.04			0.05			0.05

Net income	$	0.38		$	0.12		$	0.11		$	0.02

Basic weighted average common shares		49,103			49,041			48,895			48,967

Diluted weighted average common shares		49,531			49,244			49,109			48,967

During the fourth quarter of 2012, CBIZ recorded proceeds of $1.9 million in other income (expense), net resulting from a legal settlement. In addition, CBIZ reduced the fair value of the contingent purchase price liability related to CBIZ’s prior acquisitions by $0.7 million due to lower than originally projected future results of the acquired businesses. These items are included in “Other income (expense), net” in the consolidated statements of comprehensive income.