Slide 1: Third Quarter 2021 Investor Presentation
THIRD QUARTER 2021 INVESTOR PRESENTATION Your Team. Local. Trusted. Nationwide. October 28, 2021
Slide 2: Forward-Looking Statements & Non-GAAP Measures
Your Team. FORWARD-LOOKING STATEMENTS & NON-GAAP MEASURES 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 coul
Slide 3: CBIZ is a leading provider of financial, insurance and advisory services
CBIZ is a leading provider of financial, insurance and advisory services tailored to help our clients and their businesses grow and succeed. Your Team. Local. Trusted. Nationwide. CBIZ, INC. | PAGE 3
Slide 4: National Scale
Your Team. NATIONAL SCALE 5,000+ Team Members Seattle 100+ Offices 31 States 20 Major Markets NYSE:CBZ CBIZ, INC. | PAGE 4
Slide 5: Services & Revenue
Your Team. SERVICES & REVENUE Accounting and Tax 65% Financial Advisory Transaction Advisory Risk & Advisory Services Financial Services Valuation 31% Litigation Support 2020 Government Health Care Consulting Revenue 65% $963.9M 31% Employee Benefits Consulting Payroll / Human Capi
Slide 6: Business Model Attributes
Your Team. 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. | PAGE 6
Slide 7: Recurring Revenue
Your Team. RECURRING REVENUE Annual Tax Compliance ~70% Group Health Benefits Government Health Care Consulting Property & Casualty Payroll 30% Recurring Services Retirement Plan Services Technology Support 70% ~30% Compensation Studies Executive Search Financial Consulting Lit
Slide 8: Our Clients
Your Team. OUR CLIENTS National Resources – Personal Service 82,000+ ~48,000 ~90% Total Clients Business Clients Client Retention Rate We out-local the nationals and out-national the locals. CBIZ, INC. | PAGE 8
Slide 9: Financial Services
Your Team. FINANCIAL SERVICES Business Advisory Services Tax TOP 10 16% Accounting Provider Nationally 2020 by Accounting Today 34% Government Health Care TOP 10 Consulting 24% Top 50 Accounting Firms 2022 by Vault 26% Accounting 2020 Revenue Operating Income Operating Operating Margin Margin $629.8
Slide 10: Benefits and Insurance Services
Your Team. BENEFITS AND INSURANCE SERVICES Individual Human Capital Life Services Insurance TOP 20 4% Employee Benefits Broker of U.S. Business 2021 Payroll Consulting 15% by BI Magazine 35% TOP 100 Property & Retirement Plan Adviser 2020 20% Casualty by PLANADVISER BEST 25% Places to Work in Insura
Slide 11: Our Culture & Recognition
Your Team. OUR CULTURE & RECOGNITION See Appendix Corporate Social Responsibility | CBIZ, Inc. CBIZ, INC. | PAGE 11
Slide 12: Focus on Growth
Your Team. FOCUS ON GROWTH Compounded INTERNALINTERNAL annual growth Organic rate since 2016 INTERNAL Cross-Serving 4.8% EXTERNAL EXTERNAL M&A Earnings Per Share (from continuing operations) EXTERNAL 16.9% M&A CBIZ, INC. | PAGE 12
Slide 13: Growth by Cross-Serving
Your Team. GROWTH BY CROSS-SERVING Estimated First-Year Annualized Revenue (in millions) $35 $35.3 $35.4 $33.7 $34.0 $32.4 $25 $15 $5 2016 2017 2018 2019 2020 CBIZ, INC. | PAGE 13
Slide 14: Growth by Acquisition
Your Team. GROWTH BY ACQUISITION ATTRIBUTES STRATEGY STRUCTURE • Successful local or regional • Access to growing geographic • Consideration based on TTM company markets EBITDA • Cultural fit • Focus on high-growth • 50%+ paid up front industries and service niches • Balance paid on multi-year • Str
Slide 15: Financial Overview
Financial Overview Your Team. Local. Trusted. Nationwide. CBIZ, INC. | PAGE 15
Slide 16: Key Financial Highlights
Your Team. KEY FINANCIAL HIGHLIGHTS TOTAL 2016 2020 CAGR GROWTH REVENUE (IN MILLIONS) $799.8 $963.9 20.5% 4.8% PRE-TAX INCOME (IN MILLIONS) $67.0 $103.5 54.5% 11.5% PRE-TAX MARGIN 8.4% 10.7% 230 bps GAAP EPS (FROM CONTINUING OPERATIONS) $0.76 $1.42 86.8% 16.9% CBIZ, INC. | PAGE 16
Slide 17: YTD Highlights & 2021 Guidance
Your Team. YTD HIGHLIGHTS & 2021 GUIDANCE YTD 2021 YTD 2021 SAME-UNIT TOTAL 2021 SEGMENT REVENUE REVENUE GUIDANCE(1) GROWTH GROWTH FINANCIAL SERVICES 8.7% 16.0% BENEFITS AND INSURANCE SERVICES 4.4% 12.4% NATIONAL PRACTICES 5.5% 5.5% REVENUE 7.3% 14.5% 12% to 15% GAAP EPS (FROM CONTINUING OPERATIONS)
Slide 18: Revenue
Your Team. REVENUE YTD Revenue (in millions) $1,200 $1,080 - $1,000 $1,109 $922.0 $948.4 $963.9 $800 $855.3 $862.1 $799.8 $752.8 $600 $400 $200 $0 2016 2017 2018 2019 2020 2021(1) (1) Reflects guidance issued by the Company on October 28, 2021. This guidance speaks only as of this date and this pres
Slide 19: Diluted Earnings Per Share
Your Team. DILUTED EARNINGS PER SHARE (from continuing operations) YTD GAAP Diluted EPS from continuing operations Non-GAAP EPS $1.80 $1.70 - $1.60 $1.76 $1.36 - $1.40 $1.42 $1.42 $1.20 $1.27 $1.50 $1.41 $1.00 $1.09 $0.80 $0.92 $0.76 $0.60 $0.40 $0.20 $0.00 2016 2017 2018 2019 2020 2021(1) (1) Refle
Slide 20: Adjusted EBITDA
Your Team. ADJUSTED EBITDA See Appendix for GAAP Reconciliation Adjusted EBITDA (in millions) $125 $132.1 $120.6 $100 $109.1 $104.0 $94.8 $75 $50 $25 $0 2016 2017 2018 2019 2020 Adjusted EBITDA Margin 11.9% 12.2% 11.8% 12.7% 13.7% CBIZ, INC. | PAGE 20
Slide 21: Capital Structure
Your Team. CAPITAL STRUCTURE STRATEGIC SHARE ACQUISITIONS REPURCHASES CAPEX DEBT LEVERAGE • Focused on high- • Strategic approach • Facility improvements • Strong cash flow from growth opportunities • Neutralize impact of • Office equipment operations • Typically complete newly issued shares • $400M
Slide 22: Operating Leverage
Your Team. OPERATING LEVERAGE 12.0% Pre-tax Margin 10.0% 10.7% 9.8% 8.0% 8.4% 8.7% 8.7% 6.0% 4.0% 2.0% 0.0% 2016 2017 2018 2019 2020 Adjusted G&A Margin (1) 4.5% 3.8% 4.3% 4.5% 4.6% Goal: Pre-tax income margin improvement of 20 to 50 bps per year (1) See Appendix for GAAP reconciliation. CBIZ, INC.
Slide 23: Investment Highlights
Your Team. INVESTMENT HIGHLIGHTS OPERATIONAL FINANCIAL LEVERAGE ATTRIBUTES RESULTS • Established national platform • Strong balance sheet • Proven ability to grow earnings • Full integration of acquired • Strong and consistent cash flow at a faster rate than revenue businesses growth • Credit facili
Slide 24: Financial Goals
Your Team. FINANCIAL GOALS 2021 Guidance(1) 12% TO 15% GAAP EPS: $1.36 to $1.42 CONTINUED STRONG REVENUE GROWTH NON-GAAP EPS: $1.70 to $1.76 CASH FLOW (20% TO 24% GROWTH) Long-Term Goals - Beyond 2021 (1) Reflects guidance issued by the Company on October 28, 2021. This guidance speaks only as of th
Slide 25: Appendix
Appendix Your Team. Local. Trusted. Nationwide. CBIZ, INC. | PAGE 25
Slide 26: 2020 Workplace Awards
Your Team. 2020 WORKPLACE AWARDS National Local Health & Local Office Certifications & National Health & Workplaces Wellness Workplaces Rankings Wellness Credibility 2020 Top Entry Level Alpharetta, GA Akron, OH* Great Place to Work 2020 Health & Top 100 Retirement Employer Atlanta, GA Alpharetta, G
Slide 27: Adjusted Income and EPS Reconciliation
Your Team. ADJUSTED INCOME AND EPS RECONCILIATION GAAP RECONCILIATION (1) Income and Diluted Eearnings Per Share ("EPS") from Continuing Operations to Adjusted Income and EPS (In thousands) THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, 2021 SEPTEMBER 30, 2021 Amounts EPS Amounts EPS Income from
Slide 28: Adjusted EPS Guidance Reconciliation
Your Team. ADJUSTED EPS GUIDANCE RECONCILIATION GAAP RECONCILIATION (1) Full Year 2021 EPS from Continuing Operations Guidace to Full Year 2021 Adjusted Diluted EPS (In thousands) Full Year 2021 Guidance Low High Diluted EPS - GAAP Guidance $ 1.36 $ 1.42 Gain on sale of operations, net (0.09) (0.09)
Slide 29: Adjusted EBITDA Reconciliation
Your Team. ADJUSTED EBITDA RECONCILIATION GAAP RECONCILIATION Income from Continuing Operations to Adjusted EBITDA(1) (In thousands) THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, 2021 2020 2021 2020 Income from continuing operations $ 21,695 $ 20,096 $ 80,524 $ 78,437 Interest exp
Slide 30: Adjusted EBITDA Reconciliation
Your Team. ADJUSTED EBITDA RECONCILIATION GAAP RECONCILIATION Reconciliation of GAAP Income from Continuing Operations to Adjusted EBITDA (1) (In thousands) Year Ended December 31, 2020 2019 2018 2017 2016 Income from continuing operations……………………………….. $ 78,347 $ 71,049 $ 61,573 $ 51,032 $ 40,607 I
Slide 31: Adjusted G&A Margin Reconciliation
Your Team. ADJUSTED G&A MARGIN RECONCILIATION GAAP RECONCILIATION Reconciliation of GAAP Corporate G&A Expenses to Corporate G&A Expenses Excluding Deferred Compensation Plan (1) (In thousands) Year Ended December 31, 2020 2019 2018 2017 2016 Corporate G&A expenses…………………………………………..……….….. $ 46,066