Core Points - InMed Pharmaceuticals has appointed CBIZ as its new auditor following the resignation of Marcum LLP due to CBIZ's acquisition of Marcum's attest business, effective June 12, 2025 [1][2] - The resignation of Marcum was not due to any disagreements regarding InMed's financial statements, and previous audit reports did not contain adverse opinions [2] - A special meeting of shareholders was held but no business was conducted due to lack of quorum, resulting in no vote on the proposed issuance of 20% or more of the Company's common shares [3] - InMed has amended its Standby Equity Purchase Agreement (SEPA) with Yorkville, allowing for a temporary suspension of the use of its existing registration statement during a "Black Out Period" [4][5] - During any Black Out Period, Yorkville is prohibited from selling shares under the registration statement, but may sell through other legal exemptions [5][6] Company Overview - InMed Pharmaceuticals focuses on developing proprietary small molecule drug candidates targeting diseases with high unmet medical needs, including Alzheimer's and dermatological conditions [8]

Revenue and Income - Revenue for Q1 2025 increased by $343.7 million, or 69.5%, to $838.0 million compared to $494.3 million in Q1 2024[77] - Net income for Q1 2025 was $122.8 million, or $1.91 per diluted share, up from $76.9 million, or $1.53 per diluted share in Q1 2024[77] - Revenue from newly acquired operations contributed $333.4 million, or 66.8% of the incremental revenue for Q1 2025[77] - For the three months ended March 31, 2025, the Financial Services practice group revenue increased by 91.5% to $713.7 million from $372.6 million in the same period of 2024, primarily driven by traditional accounting and tax-related services[96] - The Benefits and Insurance Services practice group revenue increased by $4.6 million, or 4.2%, to $113.0 million, primarily due to increases in payroll-related services and employee benefit services[100] - The National Practices group revenue decreased by $1.9 million, or 14.2%, to $11.4 million, primarily due to a divestiture in the same period of 2024[103] Operating Expenses - Total operating expenses for Q1 2025 increased by $233.4 million, or 62.0%, to $609.9 million compared to $376.5 million in Q1 2024[85] - Operating expenses as a percentage of revenue decreased to 72.8% in Q1 2025 from 76.2% in Q1 2024[85] - Personnel costs increased by approximately $194.1 million in Q1 2025, primarily due to acquisitions and divestitures[86] - G&A expenses for Q1 2025 were $28.1 million, or 3.3% of revenue, compared to $18.7 million, or 3.8% of revenue in Q1 2024[87] - Operating expenses for the Financial Services practice group rose by $244.9 million, or 92.2%, to $510.5 million, with personnel costs increasing by $194.7 million largely due to acquisitions[98] - Operating expenses for the Benefits and Insurance Services practice group increased by $1.7 million, or 2.1%, to $85.4 million, with personnel costs rising by $0.9 million[101] - Total corporate general and administrative expenses increased by $9.4 million, or 50.0%, during the three months ended March 31, 2025, largely due to higher legal and professional services costs associated with a transaction[108] Income Tax and Other Income - The income tax expense for the three months ended March 31, 2025 was $50.1 million, an increase of 84.8% compared to $27.1 million in the same period of 2024, driven by higher pre-tax income[93] - Other income (expense), net for the three months ended March 31, 2025 included a net loss of $2.6 million related to the deferred compensation plan, compared to a net gain of $9.6 million in the same period of 2024[91] - Total other income (expense), net for the three months ended March 31, 2025 was $(27.6) million, a decrease of $32.4 million compared to a gain of $4.8 million in the same period of 2024[107] - Total other (expense) income, net decreased by $32.4 million in Q1 2025 compared to Q1 2024, primarily due to a net loss of $2.6 million associated with the deferred compensation plan[109] Cash Flow and Debt - Cash used in operating activities was $88.3 million in Q1 2025, consisting of a working capital use of $247.7 million, offset by net income of $122.8 million[114] - Cash provided by financing activities was $55.4 million in Q1 2025, primarily from $127.5 million in net proceeds from the credit facility[117] - The company has $1,548.4 million outstanding debt under the 2024 Credit Facilities as of March 31, 2025[79] - Outstanding debt under the 2024 Credit Facilities was $1,548.4 million as of March 31, 2025, with available funds of approximately $384.0 million[119] - The weighted average interest rate under the 2024 Credit Facilities increased to 6.57% in Q1 2025 from 5.23% in Q1 2024[119] - Interest expense for the three months ended March 31, 2025 was $25.2 million, a significant increase from $4.5 million in the same period of 2024, driven by a higher average debt balance of $1,443.4 million[89] - The outstanding balance under the 2024 Credit Facilities was $1,548.4 million as of March 31, 2025, with $1,348.4 million subject to interest rate risk[136] - A 100 basis point change in market rates would result in an annual interest expense fluctuation of approximately $13.5 million[136] Share Repurchase and Acquisitions - The company repurchased 0.1 million shares of common stock for approximately $7.7 million during Q1 2025[80] - The company authorized the purchase of up to 5.0 million shares under its share repurchase program, which expires on March 31, 2026[81] - No acquisitions were completed in Q1 2025, but the company repurchased 0.1 million shares for tax withholding purposes at a cost of approximately $7.7 million[121] Compliance and Risks - The company remains in compliance with financial covenants under the 2024 Credit Facilities as of March 31, 2025[120] - The company is subject to risks related to processing customer transactions, which could materially affect its business and financial condition[132] - The company may incur transaction, integration, and restructuring costs associated with its acquisition program, impacting financial performance[132] - Changes in the U.S. healthcare environment may adversely affect revenue and margins in the healthcare benefit business[132] - The company faces competition in the business services industry, which could negatively impact its financial condition and results of operations[132] - Cybersecurity risks, including potential breaches of computer systems, could materially affect the company's business[132] - The company’s increased leverage following the transaction may adversely impact its business and sensitivity to revenue fluctuations[132] Cash Management - Cash used in investing activities was $5.0 million in Q1 2025, primarily for capital expenditures of $5.2 million[115] - The company segregates funds collected from clients for payroll operations, investing them in short-term investments classified as available-for-sale securities[139] - Cash requirements for 2025 include repayment of outstanding debt, strategic acquisitions, and seasonal working capital needs, with expected sufficiency from operational cash flows[122] Receivables Management - Days sales outstanding (DSO) improved to 96 days in Q1 2025 from 101 days in Q1 2024, indicating better receivables collection efficiency[112]

Investor Presentation FIRST QUARTER 2025 April 24, 2025 CBIZ.COM | NYSE: CBZ Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical fact included in this presentation, including, without limitation, our "2025 Outlook," regarding our financial p ...

Financial Data and Key Metrics Changes - The company's first quarter revenue increased by 70% from $494 million to $383 million, primarily due to the acquisition of Marcum [23] - Adjusted EBITDA doubled from $119 million to $238 million, reflecting strong margin and scale attributes [24] - Pretax income rose by $69 million or 66% to $173 million, with adjusted diluted EPS increasing approximately 40% from $1.63 to $2.29 per share [25][26] Business Line Data and Key Metrics Changes - Financial Services segment revenue was $714 million, up $341 million or approximately 92% [27] - Benefits and Insurance segment revenue increased by $5 million or approximately 4% to $113 million, with adjusted EBITDA up 10% to $30 million [28] Market Data and Key Metrics Changes - The company experienced revenue softness in certain areas due to the anticipated loss of clients and the impact of the economic and geopolitical environment on industries such as capital markets and not-for-profits [13][14] - The government healthcare consulting business showed strong revenue growth and a robust pipeline of new projects [14] Company Strategy and Development Direction - The integration of Marcum is on schedule, with a focus on leveraging the combined strengths to enhance service offerings and market presence [8][36] - The company aims to maintain its guidance for adjusted EBITDA and adjusted EPS while widening revenue guidance to $2.8 billion to $2.95 billion due to economic uncertainties [15][32] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging economic environment but expressed confidence in the company's resilience due to the essential nature of its services [12] - The company is taking steps to protect and grow earnings amid ongoing uncertainties, with a focus on managing variable costs [15][50] Other Important Information - The company expects approximately $60 million in payments related to prior acquisitions in 2025, with capital expenditures estimated between $20 million and $25 million [33] - Approximately 4.4 million shares will be eligible for resale effective May 1, 2025, with a share repurchase program in place [34] Q&A Session Summary Question: What are the conditions that the bottom end of the new revenue range would assume? - Management indicated that the bottom end reflects ongoing challenges in capital markets and private equity deal flow, with a reliable range established based on first-quarter performance [68][70] Question: How is the company maintaining its earnings guidance despite revenue headwinds? - Management highlighted operational adjustments, including variable compensation and reduced headcount, as well as ongoing cost management strategies [74][78] Question: Can you provide an update on capital allocation priorities? - The company plans to focus on reducing leverage while remaining opportunistic for strategic acquisitions and share repurchases [87][89] Question: How are client conflicts being managed post-acquisition? - Management noted that client conflicts were anticipated and are being managed within the model, with most impacts now behind them [94][96] Question: What is the outlook for pricing trends in the current environment? - Management reported a positive pricing environment but acknowledged potential downward pressure if market conditions do not improve [101][104]

CBIZ, Inc. (NYSE:CBZ) Q1 2025 Earnings Conference Call April 24, 2025 11:00 AM ET Company Participants Lori Novickis - Director-Corporate Relations Jerry Grisko - President and Chief Executive Officer Brad Lakhia - Chief Financial Officer Conference Call Participants Christopher Moore - CJS Securities Andrew Nicholas - William Blair Marc Riddick - Sidoti Operator Good day, and welcome to the CBIZ First Quarter 2025 Results Conference Call. [Operator Instructions] Please note, this event is being recorded. I ...

CBIZ (CBZ) Q1 2025 Earnings Call April 24, 2025 11:00 AM ET Company Participants Lori Novickis - Director of Corporate RelationsJerry Grisko - President & Chief Executive OfficerBrad Lakhia - CFO Conference Call Participants Christopher Moore - Senior AnalystAndrew Nicholas - Equity Research AnalystMarc Riddick - Business Services Analyst Operator Good day, and welcome to the C. Biz First Quarter twenty twenty five Results Conference Call. All participants will be in listen only mode. Should you need assist ...

Financial Performance - CBIZ reported first-quarter 2025 revenue of $838.0 million, a 69.5% increase from $494.3 million in the same period of 2024[6]. - Net income for the first quarter of 2025 was $122.8 million, or $1.91 per diluted share, compared to $76.9 million, or $1.53 per diluted share, in the prior year, reflecting a 59.7% increase in net income[6][9]. - Adjusted EBITDA for the first quarter of 2025 was $237.6 million, up 100.0% from $118.8 million in the same quarter of 2024[7]. - Adjusted net income for the first quarter of 2025 was $147.2 million, or $2.29 per diluted share, a 79.7% increase compared to $81.9 million, or $1.63 per diluted share, in the same period last year[7]. - CBIZ's operating income for the first quarter of 2025 was $200.0 million, representing 23.9% of revenue, compared to $99.1 million, or 20.0% of revenue, in the same quarter of 2024[22]. - For the three months ended March 31, 2025, total revenue increased to $838,014 thousand, up 69.5% from $494,297 thousand in the same period of 2024[28]. - Net income for the three months ended March 31, 2025, was $122,773 thousand, a 59.8% increase from $76,884 thousand in 2024[30]. - Adjusted EBITDA for the three months ended March 31, 2025, was $237,620 thousand, compared to $118,830 thousand in 2024, reflecting a significant increase[36]. Future Projections - The company expects full-year 2025 revenue to be between $2.8 billion and $2.95 billion, indicating continued growth despite economic uncertainties[8]. - The company anticipates adjusted EBITDA for 2025 to be in the range of $450 million to $456 million[14]. - Diluted earnings per share for 2025 are expected to be between $1.97 and $2.02, with adjusted diluted earnings per share projected between $3.60 and $3.65[14]. - Full Year 2025 GAAP Net Income is projected to be between $127.9 million and $131.1 million, with diluted EPS ranging from $1.97 to $2.02[39]. - Adjusted Net Income for 2025 is expected to be between $234.5 million and $237.7 million, with adjusted diluted EPS between $3.60 and $3.65[39]. - Adjusted EBITDA guidance for 2025 is projected to be between $450.4 million and $456.2 million[39]. Integration and Costs - The integration of Marcum is on schedule, contributing to strong employee and client retention rates[5][9]. - The company incurred integration costs related to acquisitions amounting to $15,692 thousand for the three months ended March 31, 2025[36]. - Integration costs related to acquisitions are expected to total $75.0 million for 2025[39]. - The company is focusing on integration costs related to the Marcum acquisition, which includes consulting, technology, and personnel expenses[40]. - Accelerated depreciation associated with technology assets from the acquisition of Marcum is included in the reported expenses[38]. - Incremental non-recurring lease expenses are incurred due to real estate optimization efforts[38]. Financial Position - Cash and cash equivalents at the end of the period were $149,306 thousand, compared to $135,914 thousand at the end of March 2024[30]. - The company reported a debt to equity ratio of 79.8% as of March 31, 2025, up from 78.6% at the end of 2024[32]. - Days sales outstanding (DSO) increased to 96 days as of March 31, 2025, compared to 73 days in the previous year[32]. - Total assets increased to $4,585,498 thousand as of March 31, 2025, compared to $4,470,883 thousand at the end of 2024[32]. Tax and Expenses - The effective tax rate is projected to be approximately 29% for 2025[14]. - Depreciation expense for 2025 is estimated at $22.1 million[39]. - Amortization of acquired intangible assets is projected to be $75.1 million for 2025[39]. - Interest expense for 2025 is anticipated to be $99.3 million[39].

Industry Overview - The consulting industry has experienced exponential growth since the 2008 financial crisis, characterized by steady revenues, profit, and cash-flow growth due to economic strength and increased service activities [1] - The industry is currently ranked in the top 7% of the Zacks Industry Rank, indicating strong performance expectations over the next three to six months [2] - The consulting services sector has been one of the least affected by the pandemic, as organizations continue to seek extensive advice on employee protection and consumer engagement [4] Company Recommendations - Five consulting stocks are recommended for portfolio strengthening, including Huron Consulting Group Inc. (HURN), CBIZ Inc. (CBZ), Stantec Inc. (STN), Information Services Group Inc. (III), and CRA International Inc. (CRAI) [3] Huron Consulting Group Inc. (HURN) - HURN operates in three segments: Healthcare, Education, and Commercial, and holds a Zacks Rank 1 (Strong Buy) [6] - Expected revenue and earnings growth rates for HURN are 8.9% and 10.5%, respectively, with a 3.5% improvement in the Zacks Consensus Estimate for current-year earnings [8] - The average short-term price target for HURN indicates a potential upside of 31.2% from the last closing price of $137.21, with targets ranging from $165 to $180 [8] CBIZ Inc. (CBZ) - CBZ provides a wide range of professional business services, including financial and employee management services, and also holds a Zacks Rank 1 [10] - Expected revenue and earnings growth rates for CBZ are 61.4% and 36%, respectively, with a 23.1% improvement in the Zacks Consensus Estimate for current-year earnings [11] - The average short-term price target for CBZ suggests a maximum upside of 23% from the last closing price of $77.24, with targets ranging from $86 to $95 [12] Stantec Inc. (STN) - STN offers professional consulting services in various fields, including planning, engineering, and environmental sciences, and holds a Zacks Rank 1 [13] - Expected revenue and earnings growth rates for STN are 7.3% and 14.2%, respectively, with a slight improvement in the Zacks Consensus Estimate for current-year earnings [15] - The average short-term price target for STN indicates a maximum upside of 19.6% from the last closing price of $86.60, with targets ranging from $94.50 to $103.60 [15] Information Services Group Inc. (III) - III operates as an AI-centered technology research and advisory company, providing digital transformation services and holds a Zacks Rank 2 [16] - Expected revenue and earnings growth rates for III are -2.6% and 35%, respectively, with a 3.9% improvement in the Zacks Consensus Estimate for current-year earnings [19] - The average short-term price target for III suggests a maximum upside of 90.7% from the last closing price of $3.67, with targets ranging from $3.75 to $7 [20] CRA International Inc. (CRAI) - CRAI provides economic, financial, and management consulting services globally and holds a Zacks Rank 2 [21] - Expected revenue and earnings growth rates for CRAI are 4.4% and 2%, respectively, with a 1.3% improvement in the Zacks Consensus Estimate for current-year earnings [24] - The average short-term price target for CRAI indicates a maximum upside of 50.5% from the last closing price of $164.25, with targets ranging from $224 to $247 [24]

Core Viewpoint - CBIZ reported quarterly earnings of $2.29 per share, exceeding the Zacks Consensus Estimate of $2.13 per share, and showing a significant increase from $1.54 per share a year ago, indicating strong performance despite missing revenue expectations [1][2]. Financial Performance - The company achieved revenues of $838.01 million for the quarter ended March 2025, which was 2.78% below the Zacks Consensus Estimate, but up from $494.3 million year-over-year [2]. - Over the last four quarters, CBIZ has surpassed consensus EPS estimates three times and topped revenue estimates twice [2]. Stock Performance - CBIZ shares have declined approximately 5.6% since the beginning of the year, while the S&P 500 has seen a decline of 8.6% [3]. - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating expectations for outperformance in the near future [6]. Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.97 on revenues of $728 million, and for the current fiscal year, it is $3.63 on revenues of $2.93 billion [7]. - The trend of estimate revisions for CBIZ has been favorable leading up to the earnings release, which may influence future stock movements [6][5]. Industry Context - The Consulting Services industry, to which CBIZ belongs, is currently ranked in the top 9% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8].

Core Insights - CBIZ, Inc. reported strong first-quarter results for 2025, with significant increases in revenue and net income, demonstrating resilience in varying business climates [2][3][5]. Financial Performance - Revenue for Q1 2025 was $838.0 million, a 69.5% increase from $494.3 million in Q1 2024 [3][19]. - Net income rose to $122.8 million, or $1.91 per diluted share, compared to $76.9 million, or $1.53 per diluted share, in the same period last year, marking a 59.7% increase in net income [3][19]. - Adjusted EBITDA for Q1 2025 was $237.6 million, doubling from $118.8 million in Q1 2024, reflecting a 100% increase [4][19]. - Adjusted net income was $147.2 million, or $2.29 per diluted share, up 79.7% from $81.9 million, or $1.63 per diluted share, in Q1 2024 [4][19]. Segment Performance - The Financial Services segment generated $713.7 million in revenue, significantly up from $372.6 million in Q1 2024 [19]. - Benefits and Insurance Services revenue increased slightly to $113.0 million from $108.4 million year-over-year [19]. - National Practices revenue decreased to $11.4 million from $13.3 million in the previous year [19]. Integration and Operational Efficiency - The integration of Marcum is progressing on schedule, contributing to strong employee and client retention rates [2][5]. - Operating expenses as a percentage of revenue decreased from 76.2% in Q1 2024 to 72.8% in Q1 2025, indicating improved operational efficiency [17]. 2025 Outlook - The company anticipates full-year 2025 revenue to be in the range of $2.8 billion to $2.95 billion, reflecting some uncertainty in non-recurring service lines due to the current economic environment [5][10]. - The effective tax rate is expected to be approximately 29% [10]. - Adjusted EBITDA for the full year is projected to be between $450 million and $456 million [10].