Slide 1: Third Quarter 2024 Investor Presentation
ACCOUNTING | INSURANCE | ADVISORY Third Quarter 2024 Investor Presentation October 29, 2024 Except certain related non-recurring legal and professional services costs incurred, this presentation does not include the impact of the announced acquisition of Marcum, LLP (“Marcum”) that is expected to cl
Slide 2: Forward-Looking Statements
Forward-Looking Statements Forward-looking statements in this presentation are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ
Slide 3: Non-GAAP Measures
Non-GAAP Measures The Company reports its financial results in accordance with the United States Generally Accepted Accounting Principles (GAAP). This presentation also includes the presentation of financial measures that are not defined by GAAP. The Company uses Adjusted Net Income, Adjusted Dilute
Slide 4: Your Team.
Your Team. CBIZ is a leading provider of financial, insurance and advisory services tailored to help our clients and their businesses grow and succeed. CBIZ, INC. | NYSE: CBZ 4
Slide 5: CBIZ By The Numbers
CBIZ By The Numbers More than 120 offices and 6,700 team members in major metropolitan areas and cities nationwide, SERVING MORE THAN 100,000 CLIENTS TEAM 6,700+ MEMBERS 120+ OFFICES 33 STATES 21 MAJOR MARKETS Major Markets Offices CBIZ, INC. | NYSE: CBZ 5
Slide 6: What We Do
What We Do ▪ Accounting & Tax 73% ▪ Financial Advisory ▪ Transaction Advisory 3% ▪ Risk & Advisory Services FINANCIAL ▪ Valuation SERVICES ▪ Litigation Support 24% ▪ Government Health Care Consulting 2023 Revenue 24% ▪ Employee Benefits Consulting ▪ Payroll / Human Capital Management $1.6B ▪ Propert
Slide 7: Business Model Attributes
Business Model Attributes ESSENTIAL & HIGH CLIENT RECURRING RETENTION SERVICES BROAD DIVERSE GEOGRAPHIC CLIENT BASE FOOTPRINT (Size/Industry) STRONG & VARIABLE CONSISTENT EXPENSES CASH FLOWS CBIZ, INC. | NYSE: CBZ 7
Slide 8: Recurring Revenue
Recurring Revenue ~75% ▪ Annual Accounting & Tax Services ▪ Group Health Benefits ▪ Government Health Care Consulting RECURRING ▪ Property & Casualty SERVICES 25% ▪ Payroll ▪ Retirement Plan Services ▪ Technology Support ~25% ▪ Compensation Studies ▪ Executive Search ▪ Financial Consulting PROJECT B
Slide 9: Our Clients
Our Clients Target: mid-sized business 100,000+ ~60,000 ~90% TOTAL BUSINESS CLIENT CLIENTS CLIENTS RETENTION RATE National Resources – Personal Service CBIZ, INC. | NYSE: CBZ 9
Slide 10: National Resources/Specialization
Competitive Advantage STRENGTH National Providers National Resources/Specialization National Resources & Expertise Local Relationship & Delivery Local / Regional STRENGTH Proximity and Relationship We out-local the nationals and out-national the locals. CBIZ, INC. | NYSE: CBZ 10
Slide 11: Financial Services
Financial Services Business Advisory Top 11 Services 18% Tax Accounting Provider Nationally 2024 by Accounting Today 40% Government Health Care Top 10 Consulting 17% Accounting Firms 2024 by Vault 25% Accounting 2023 Revenue Operating Income Operating Margin $1.2B $185.6M 16.0% CBIZ, INC. | NYSE: CB
Slide 12: Benefits & Insurance Services
Benefits & Insurance Services Human Capital Individual Life Services 3% 1% Insurance Payroll Employee Top 30 Benefits Consulting 14% 32% Broker of U.S. Business 2024 by BI Magazine BEST Places to Work in Insurance 2024 Property & Casualty 26% by BI Magazine 24% Retirement & Investment Solutions 2023
Slide 13: Our People, Culture & Recognition
Our People, Culture & Recognition CBIZ, INC. | NYSE: CBZ 13
Slide 14: Focus on Growth
Focus on Growth REVENUE GROWTH COMPONENTS INTERNAL Organic Compounded Annual Growth Rate from 2019 to 2023 INTERNAL Cross-Serving 13.8% EXTERNAL M&A Adjusted Earnings Per Share(1) 17.6% (1) Non-GAAP financial measure. See Appendix for GAAP reconciliation. CBIZ, INC. | NYSE: CBZ 14
Slide 15: Growth by Acquisition
Growth by Acquisition STRATEGY ATTRIBUTES STRUCTURE ▪ Enter attractive geographic ▪ Successful local or ▪ Consideration based on markets regional company TTM EBITDA ▪ Strengthen presence in ▪ Cultural fit ▪ 50%+ paid up front existing markets ▪ Strong leadership ▪ Balance paid on multi-year ▪ Add br
Slide 16: Financial Overview
ACBIZ FINANCIAL OVERVIEW
Slide 17: Key Financial Highlights
Key Financial Highlights TOTAL 2019 2023 CAGR GROWTH REVENUE (IN MILLIONS) $948.4 $1,591.2 67.8% 13.8% PRE-TAX INCOME (IN MILLIONS) $92.6 $166.3 79.0% 15.8% ADJUSTED PRE-TAX INCOME(1) (IN MILLIONS) $92.6 $167.6 81.0% 16.0% PRE-TAX MARGIN 9.8% 10.4% +60 bps ADJUSTED PRE-TAX MARGIN(1) 9.8% 10.5% +70 b
Slide 18: 2024 YTD Highlights & 2024 FY Guidance
2024 YTD Highlights & 2024 FY Guidance 3Q24 YTD 3Q24 YTD SAME-UNIT TOTAL 2024 SEGMENT REVENUE REVENUE GUIDANCE(1) GROWTH GROWTH FINANCIAL SERVICES 4.5% 7.7% BENEFITS AND INSURANCE SERVICES 4.0% 4.6% NATIONAL PRACTICES 14.5% 11.7% REVENUE 4.6% 7.1% +7% to 9% GAAP DILUTED EPS (0.8)% +/- 1% ADJUSTED DI
Slide 19: Capital Structure
Capital Structure DEBT STRATEGIC SHARE LEVERAGE CAPEX ACQUISITIONS REPURCHASES (As Defined in 2022 Credit Facility) ▪ Focused on high-growth ▪ Strategic approach to ▪ Facility improvements • Strong cash flow from opportunities open market operations ▪ Office equipment repurchases ▪ Average three to
Slide 20: Investment Highlights
Investment Highlights OPERATIONAL FINANCIAL RESULTS LEVERAGE ATTRIBUTES ▪ Proven ability to grow ▪ Established national ▪ Strong balance sheet earnings at a faster rate platform than revenue growth ▪ Strong and consistent cash flow ▪ Full integration of ▪ 2019 – 2023 Revenue ▪ Credit facility provid
Slide 21: Five-Year Total Shareholder Return
Five-Year Total Shareholder Return COMPARISON OF 5-YEAR CUMULATIVE TOTAL RETURN* Among CBIZ, Inc., the S&P 500 Index, the Russell 2000 Index, and a Peer Group *$100 invested on 12/31/18 in stock or index, including reinvestment of dividends. Fiscal years ending December 31. Peer Group companies iden
Slide 22: Financial Goals
Financial Goals 2024 GUIDANCE (1) GAAP EPS Growth: +/- 1% +7% to 9% Revenue Growth Adj. EPS(2) Growth: +10% to 12% Continued Strong Cash Flow LONG-TERM GOALS – BEYOND 2024 Meaningful Earnings Growth Revenue Growth OPERATING LEVERAGE (1) Reflects guidance provided by the Company on October 29, 2024.
Slide 23: Appendix
ACBIZ APPENDIX
Slide 24: Workplace
Workplace <] 2023 Top Workplaces USA 2023 Best and Brightest Companies in the Nation 2023 Top Workplaces ~ Culture Excellence in Leadership, Purpose and Values, Work-Life Flexibility, Compensation and Benefits, Innovation, Employee Appreciation, National Workplaces 2023 Best Places to Work in Insura
Slide 25: YTD Adjusted EPS and EBITDA Reconciliation
YTD Adjusted EPS and EBITDA Reconciliation CBIZ, INC. | NYSE: CBZ 25
Slide 26: Adjusted Pre-Tax Income and Margin Reconciliation
Adjusted Pre-Tax Income and Margin Reconciliation CBIZ, INC. | NYSE: CBZ 26
Slide 27: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation CBIZ, INC. | NYSE: CBZ 27
Slide 28: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation GAAP RECONCILIATION Reconciliation of Net Income to Adjusted EBITDA (1) (In thousands) Year Ended December 31, 2023 2022 2021 2020 2019 Net income……………………………….. $ 120,968 $ 105,354 $ 70,887 $ 78,299 $ 70,714 Interest expense……………………………………………...... 20,131 8,039 3,868 4,
Slide 29: Adjusted EPS Guidance Reconciliation
Adjusted EPS Guidance Reconciliation CBIZ, INC. | NYSE: CBZ 29
Slide 30: Your Team
ACCOUNTING | INSURANCE | ADVISORY Your Team Connect with us at CBIZ.com