Slide 1: Fourth Quarter & Full Year 2023 Investor Presentation
ACCOUNTING | INSURANCE | ADVISORY Fourth Quarter & Full Year 2023 Investor Presentation February 15, 2024 CBIZ.COM | NYSE: CBZ
Slide 2: Forward-Looking Statements & Non-GAAP Measures
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 could cause actu
Slide 3: 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 3
Slide 4: CBIZ By The Numbers
CBIZ By The Numbers More than 120 offices and 6,700 team members in major metropolitan areas and suburban 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 4
Slide 5: What We Do
What We Do 73% ▪ Accounting & Tax ▪ Financial Advisory ▪ Transaction Advisory 3% FINANCIAL ▪ Risk & Advisory Services SERVICES ▪ Valuation ▪ Litigation Support 24% ▪ Government Health Care Consulting 2023 Revenue 24% ▪ Employee Benefits Consulting ▪ Payroll / Human Capital Management $1.6B ▪ Propert
Slide 6: 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 6
Slide 7: Recurring Revenue
Recurring Revenue ~75% ▪ Annual Tax Compliance ▪ 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-BASED ▪ Liti
Slide 8: Our Clients
Our Clients Target: small- & medium-sized business 100,000+ ~60,000 ~90% TOTAL BUSINESS CLIENT CLIENTS CLIENTS RETENTION RATE National Resources – Personal Service CBIZ, INC. | NYSE: CBZ 8
Slide 9: 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 9
Slide 10: Financial Services
Financial Services Business Advisory Top 12 Services 18% Tax Accounting Provider Nationally 2023 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 11: Benefits & Insurance Services
Benefits & Insurance Services Human Capital Individual Life 3% 1% Top 30 Services Insurance Payroll Employee Benefits Broker of U.S. Business 2023 Consulting by BI Magazine 14% 32% Top 3 Institutional Consulting Team by Barron’s 2023 Property & 26% Casualty BEST Places to Work in Insurance 2023 24%
Slide 12: Our People, Culture & Recognition
Our People, Culture & Recognition CBIZ, INC. | NYSE: CBZ 12
Slide 13: Focus on Growth
Focus on Growth REVENUE GROWTH COMPONENTS INTERNAL Organic Compounded Annual Growth Rate since 2019 INTERNAL Cross-Serving 13.8% EXTERNAL M&A Adjusted Earnings Per Share(1) 17.4% (1) Non-GAAP financial measure. See Appendix for GAAP reconciliation. CBIZ, INC. | NYSE: CBZ 13
Slide 14: 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 market ▪ Strong leadership ▪ Balance paid on multi-year ▪ Add bre
Slide 15: Financial Overview
ACBIZ FINANCIAL OVERVIEW
Slide 16: 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% 10.5% +60 bps ADJUSTED PRE-TAX MARGIN(1) 9.8% 10.4% +60 b
Slide 17: 2023 Highlights & 2024 Guidance
2023 Highlights & 2024 Guidance 2023 2023 SAME-UNIT TOTAL 2024 SEGMENT REVENUE REVENUE GUIDANCE(1) GROWTH GROWTH FINANCIAL SERVICES 7.6% 14.9% BENEFITS AND INSURANCE SERVICES 6.5% 6.9% NATIONAL PRACTICES 9.1% 9.1% REVENUE 7.4% 12.7% 7% to 9% GAAP EPS 18.9% 13% to 15% ADJUSTED EPS(2) 13.1% 12% to 14%
Slide 18: Capital Structure
Capital Structure STRATEGIC SHARE DEBT CAPEX ACQUISITIONS REPURCHASES LEVERAGE ▪ Focused on high-growth ▪ Strategic approach to ▪ Facility improvements • Strong cash flow from opportunities open market repurchases operations ▪ Office equipment ▪ Average three to five ▪ Neutralize impact of • $600M u
Slide 19: 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 provide
Slide 20: 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 21: Financial Goals
Financial Goals 2024 GUIDANCE (1) GAAP EPS Growth: 13% to 15% 7% to 9% Revenue Growth Continued Strong Cash Flow Adj. EPS Growth: 12% to 14% LONG-TERM GOALS – BEYOND 2024 Earnings Growth 2X Revenue Revenue Growth OPERATING LEVERAGE (1) Reflects guidance issued by the Company on February 15, 2024. Th
Slide 22: Appendix
ACBIZ APPENDIX
Slide 23: Workplace Awards and Recognition
sty gals ‘2 100 Workplace So National Workplaces 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, 2023 Best Places t
Slide 24: YTD Adjusted EPS and EBITDA Reconciliation
YTD Adjusted EPS and EBITDA Reconciliation GAAP RECONCILIATION Net Income and Diluted Earnings Per Share ("EPS") to Adjusted Net Income, EPS and EBITDA(1) (In thousands) TWELVE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31, 2023 DECEMBER 31, 2022 Amounts EPS Amounts EPS Net income $ 120,968 $ 2.39 $
Slide 25: Adjusted Pre-Tax Income and Margin Reconciliation
Adjusted Pre-Tax Income and Margin Reconciliation GAAP RECONCILIATION Pre-tax Income to Adjusted Pre-tax Income(1) (In thousands) 2023 2022 2021 2020 2019 % of % of % of Amounts % of Revenue Amounts Revenue Amounts % of Revenue Amounts Revenue Amounts Revenue Pre-tax income $ 166,303 10.4% $ 141,475
Slide 26: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation GAAP RECONCILIATION (1) Net income and Diluted Earnings Per Share ("EPS") to Adjusted Net Income and Adjusted EPS (In thousands, except per share data) Year Ended December 31, 2023 EPS 2022 EPS 2021 EPS 2020 EPS 2019 EPS Net income $ 120,968 $ 2.39 $105,354 $ 2.01 $ 70,88
Slide 27: 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 4,9
Slide 28: Adjusted EPS Guidance Reconciliation
Adjusted EPS Guidance Reconciliation GAAP RECONCILIATION Full Year 2024 Diluted Earnings Per Share ("EPS") Guidance to Full Year 2024 Adjusted Diluted EPS (In thousands) Full Year 2024 Guidance Low High Diluted EPS - GAAP Guidance $ 2.70 $ 2.75 Adjusted Diluted EPS Guidance $ 2.70 $ 2.75 GAAP Dilute
Slide 29: Your Team
ACCOUNTING | INSURANCE | ADVISORY Your Team Connect with us at CBIZ.com