Business
CBIZ REPORTS FOURTH-QUARTER AND FULL-YEAR 2024 RESULTS
CBIZ, Inc. (NYSE: CBZ) ("CBIZ", or the "Company"), a leading national professional services advisor, today announced fourth-quarter and full-year results for the period ended December 31, 2024.
About this update from Cbiz, Inc.
FOURTH-QUARTER HIGHLIGHTS: FULL-YEAR HIGHLIGHTS: 2025 OUTLOOK: CLEVELAND , Feb. 26, 2025 /PRNewswire/ -- CBIZ, Inc. (NYSE: CBZ) ("CBIZ", or the "Company"), a leading national professional services advisor, today announced fourth-quarter and full-year results for the period ended December 31, 2024. On November 1, 2024 , CBIZ closed the previously announced acquisition of Marcum LLP (the "Transaction"), the largest acquisition in the Company's history. For the 2024 fourth quarter, CBIZ recorded revenue of $460.3 million , an increase of 40.5%, compared to the same period in 2023, with a 33.2% increase attributed to the Transaction and 7.3% increase excluding the impact of the Transaction. Same-unit revenue increased by 6.4%. For the full year ended December 31, 2024, CBIZ recorded revenue of $1,813.5 million , an increase of $222.3 million , or 14.0%, over the $1,591.2 million for the same period in 2023, with a 6.8% increase attributed to the impact of the Transaction. Excluding the impact of the Transaction, revenue increased by 7.1% with same-unit revenue increasing by 4.8%, compared with the same period a year ago. GAAP earnings per share for the full year was $0.78 . Full-year 2024 Adjusted earnings per share, excluding the impact of the Transaction and excluding acquisition-related transaction and integration costs, was $2.67 , an increase of 10.8%, compared with 2023. To assist in evaluating the incremental impact of the Transaction on consolidated results, a table reconciling the non-GAAP Adjusted Net Income and Adjusted EPS the comparable GAAP presentation is included in this Release. In connection with closing the Transaction, the Company entered into a new $2.0 billion credit facility. On December 31, 2024, the outstanding indebtedness under the Company's 2024 credit facilities was $1,420 .9 million, with $556.0 million of unused borrowing capacity. Jerry Grisko , CBIZ President and Chief Executive Officer, said, "With the successful close of the Marcum transaction last November, we are excited for this new chapter in our Company's history and the opportunities it presents for our collective team members, clients, and CBIZ shareholders. With unmatched breadth of services and depth of expertise, CBIZ has solidified our position as the largest provider of professional services of our kind to middle-market businesses." Grisko continued, "We're pleased to report fourth-quarter same-unit revenue grew by 6.4% with full-year same-unit revenue up by 4.8%. Excluding the revenue attributed to the newly acquired Marcum operations, total revenue increased by 7.1% for the full year. As expected, closing the transaction in the fourth quarter greatly amplified the typical seasonality of our now larger accounting and tax services business. Excluding the incremental impact of the Marcum acquisition, CBIZ finished the year with strong results within our full-year guidance for both revenue growth and for Adjusted earnings per share. Closing the transaction early in the fourth quarter enabled us to accelerate integration and planning efforts, and allows us to continue our strong momentum in 2025." 2025 Outlook Conference Call CBIZ will host a conference call at 11 a.m. ET today to discuss its results. Participants may register for the conference call at https://dpregister.com/sreg/10196912/fe8127f4a0 .The call will be webcast and an archived replay will be available at https://cbiz.gcs-web.com/investor-overview . About CBIZ CBIZ, Inc. (NYSE: CBZ) is a leading professional services advisor to middle market businesses and organizations nationwide. With industry knowledge and expertise in accounting, tax, advisory, benefits, insurance, and technology, CBIZ delivers forward-thinking insights and actionable solutions to help clients anticipate what is next and discover new ways to accelerate growth. CBIZ has more than 10,000 team members across more than 160 locations in 22 major markets coast to coast. For more information, visit www.cbiz.com . Forward-Looking Statements This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934 ("the Exchange Act"). All statements other than statements of historical fact included in this release regarding our financial position, business strategy and plans and objectives for future performance, including our "2025 Outlook" are forward-looking statements. You can identify these statements by the fact that they do not relate strictly to historical or current facts. Forward-looking statements are commonly identified by the use of such terms and phrases as "will," "could," "can," "may," "strive," "hope," "intend," "believe," "estimate," "continue," "plan," "expect," "project," "anticipate," "outlook," "foreseeable future," "seek" and words or phrases of similar import in connection with any discussion of future operating or financial performance. In particular, these include statements relating to future actions, future performance or results of current and anticipated services, sales efforts, expenses, and financial results. From time to time, we may also provide oral or written forward-looking statements in other materials we release to the public. All of our forward-looking statements in this release and in any other public statements that we make, are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties include, but are not limited to: payments on accounts receivable may be slower than expected, or amounts due on receivables or notes may not be fully collectible; we are dependent on the services of our executive officers, other key employees, producers and service personnel, the loss of whom may have a material adverse effect on our business, financial condition and results of operations; restrictions imposed by independence requirements, conflict of interest rules, or other changes imposed on us by regulatory bodies may limit our ability to provide services to clients of the attest firms with which we have contractual relationships and the ability of such attest firms to provide attestation services to our clients; our goodwill and intangible assets could become impaired, which could lead to material non-cash charges against earnings; certain liabilities resulting from acquisitions are estimated and could lead to a material impact on our results of operations; we may fail to realize the anticipated benefits of acquisitions, or they may prove disruptive and could result in the combined business failing to meet our expectations; our business could be adversely affected if Marcum does not perform to our expectations or we underestimate the liabilities we have assumed; recent Securities & Exchange Commission ("SEC") and Public Company Accounting Oversight Board ("PCAOB") sanctions against Marcum may adversely impact our performance and reputation; if we are unable to implement and maintain effective internal control over financial reporting following the Marcum acquisition (the "Transaction"), we may fail to prevent or detect material misstatements in our financial statements, in which case investors could lose confidence in the accuracy and completeness of our financial reports and the market price of our common stock may decline; we may not be able to acquire and finance additional businesses, which could limit our ability to pursue our business strategy; we will incur transaction, integration, and restructuring costs in connection with our acquisition program; governmental regulations and interpretations are subject to changes, which could have a material adverse effect on our financial condition; changes in the United States healthcare environment, including new healthcare legislation, may adversely affect the revenue and margins in our healthcare benefit business; we are subject to risks relating to processing customer transactions for our payroll and other transaction processing businesses; cyber-attacks or other security breaches involving our computer systems or the systems of one or more of our vendors could materially and adversely affect our business; we are subject to risk as it relates to software that we license from third parties; we are reliant on information processing systems and any failure or disruptions of these systems could have a material adverse effect on our business, financial condition and results of operations; we could be held liable for errors and omissions; the business services industry is competitive and fragmented, if we are unable to compete effectively, our business, financial condition and results of operations could be negatively impacted; given our levels of share-based compensation, our tax rate may vary significantly depending on our stock price; rapid technological changes could significantly impact our competitive position, client relationships and operating results and our ability to realize the anticipated benefits of the Transaction; climate change legislation or regulations restricting emissions of greenhouse gases could result in increased operating costs; the widespread outbreak of a communicable illness or any other public health crisis could adversely affect our business, financial condition and results of operations; we require a significant amount of cash for interest payments on our debt and to expand our business as planned; terms of our credit facility could adversely affect our ability to run our business and/or reduce stockholder returns; our failure to satisfy covenants in our debt instruments could cause a default under those instruments; our increased leverage following the Transaction may adversely impact our business; we may be more sensitive to revenue fluctuations than other companies, which could result in fluctuations in the market price of our common stock; the significant number of shares issuable as the stock consideration in the Transaction may adversely impact our stock price; the future issuance of additional shares could adversely affect the price of our common stock; there is volatility in our stock price; and the price of our common stock could be adversely impacted if we do not perform to expectations following the Transaction. Such forward-looking statements can be affected by inaccurate assumptions we might make or by known or unknown risks and uncertainties. Many factors mentioned in "Item 1A. Risk Factors" of our most recent Annual Report on Form 10-K, as updated in subsequent filings with the SEC, will be important in determining future results. Should one or more of these risks or assumptions materialize, or should the underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, projected or implied. Consequently, no forward-looking statement can be guaranteed. Our actual future results may vary materially, and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. All forward-looking statements made in this release are made only as the date hereof. The Company does not undertake any obligation to publicly update or correct any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Non-GAAP Financial Measurements To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we also present the Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share ("EPS"), which are non-GAAP measures. These non-GAAP measures, adjusted to exclude the impact of the Marcum acquisition, integration costs, amortization of acquired intangible assets, and other significant non-operating related gain and losses management does not consider on-going in nature. The presentation of non-GAAP financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. We use these non-GAAP financial measures for financial and operational decision-making, and to evaluate results relative to employee compensation targets. We believe that these non-GAAP financial measures provide meaningful supplemental information to stockholders, debt holders, and other interested parties in assessing our performance. These non-GAAP financial measures also facilitate management's internal comparisons to our historical performance by excluding significant acquisition expenses, certain one-time non-recurring items, gains and losses that management does not consider ongoing in nature. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key measures used by management in its financial and operational decision-making and (2) they are used by our stockholders and analyst community to determine the health of our business. Management provides specific information regarding the GAAP amounts excluded from or included in this non-GAAP financial measurement. Additionally, management provides reconciliations of these non-GAAP financial measurements to their most comparable financial measures in accordance with GAAP. Please see the sections captioned 'GAAP Reconciliation' within the Appendix for the reconciliations. View original content to download multimedia: https://www.prnewswire.com/news-releases/cbiz-reports-fourth-quarter-and-full-year-2024-results-302385358.html SOURCE CBIZ, Inc.