[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Condensed Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Condensed%20Financial%20Statements%20(Unaudited)) This section presents CBIZ, Inc.'s unaudited condensed consolidated financial statements, highlighting year-over-year increases in total assets, net income, and earnings per share [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) The balance sheet as of September 30, 2020, shows total assets increased to **$1.425 billion** from **$1.401 billion**, driven by goodwill and intangible assets, with stockholders' equity rising to **$718.0 million** Consolidated Balance Sheet Highlights (in thousands) | Account | September 30, 2020 | December 31, 2019 | | :--- | :--- | :--- | | **Total Assets** | **$1,425,116** | **$1,400,774** | | Total Current Assets | $425,891 | $456,020 | | Goodwill and other intangible assets, net | $695,562 | $654,671 | | **Total Liabilities** | **$707,112** | **$741,536** | | Total Current Liabilities | $298,056 | $365,926 | | Total Long-term Debt | $109,103 | $104,333 | | **Total Stockholders' Equity** | **$718,004** | **$659,238** | [Consolidated Statements of Comprehensive Income](index=4&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) For the nine months ended September 30, 2020, revenue increased by **1.0%** to **$752.8 million**, with net income growing **9.1%** to **$78.4 million** and diluted EPS rising to **$1.41** Income Statement Highlights (in thousands, except per share data) | Metric | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | | :--- | :--- | :--- | | Revenue | $752,787 | $745,286 | | Gross Margin | $139,184 | $122,496 | | Operating Income | $106,196 | $88,580 | | Net Income | $78,393 | $71,867 | | Diluted EPS (Continuing Operations) | $1.41 | $1.29 | [Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) Total stockholders' equity increased to **$718.0 million** by September 30, 2020, primarily due to **$78.4 million** in net income, partially offset by **$34.8 million** in share repurchases - Key changes in stockholders' equity for the nine months ended September 30, 2020 include: Net income of **$78.4 million**, share repurchases of **$34.8 million**, and stock-based compensation of **$6.8 million**[14](index=14&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly increased to **$81.8 million** for the nine months ended September 30, 2020, while **$33.8 million** was used for acquisitions and **$34.1 million** for share repurchases Cash Flow Summary (in thousands) | Cash Flow Activity | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | | :--- | :--- | :--- | | Net cash provided by operating activities | $81,796 | $49,414 | | Net cash used in investing activities | ($9,491) | ($24,691) | | Net cash used in financing activities | ($94,058) | ($56,473) | | Net decrease in cash | ($21,753) | ($31,750) | [Notes to the Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, new standards, acquisitions, and legal contingencies, highlighting the adoption of the CECL model, five acquisitions, and significant ongoing legal proceedings - Effective January 1, 2020, the company adopted Topic 326 (CECL model), which did not have a material impact on the consolidated financial statements[24](index=24&type=chunk) - The company recorded bad debt expense of **$2.2 million** due to the COVID-19 pandemic during the nine months ended September 30, 2020[27](index=27&type=chunk) - During the first nine months of 2020, the company completed five acquisitions for an aggregate consideration of approximately **$55.3 million**, consisting of cash, common stock, and contingent consideration[49](index=49&type=chunk)[51](index=51&type=chunk) - The company faces several significant legal proceedings, including claims by UPMC for damages between **$124.0 million** and **$266.0 million**, and by Zotec for damages up to **$177.0 million**[32](index=32&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial resilience in 2020, with nine-month revenue growing **1.0%** to **$752.8 million** driven by acquisitions, while maintaining strong liquidity and strategic capital deployment - The recurring and essential nature of the majority of business services provided stability to financial results, with no material adverse impact from COVID-19 through Q3 2020[74](index=74&type=chunk) Nine-Month Revenue Performance by Segment (in thousands) | Segment | 2020 Revenue | 2019 Revenue | % Change | | :--- | :--- | :--- | :--- | | Financial Services | $498,359 | $493,311 | 1.0% | | Benefits and Insurance Services | $227,433 | $225,342 | 0.9% | | National Practices | $26,995 | $26,633 | 1.4% | | **Total CBIZ** | **$752,787** | **$745,286** | **1.0%** | - For the nine months ended September 30, 2020, the company repurchased **1.4 million** shares of common stock for approximately **$34.8 million**[85](index=85&type=chunk) - Days Sales Outstanding (DSO) was **87 days** at September 30, 2020, an improvement from **94 days** at the same time in 2019[136](index=136&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate exposure on its floating-rate debt, managed through **$95.0 million** in interest rate swaps, with a **100 basis point** rate change impacting annual interest expense by **$0.2 million** - The company's primary market risk is interest rate risk from its **$110.0 million** floating-rate debt outstanding under the 2018 credit facility[159](index=159&type=chunk) - A **100 basis point** change in market interest rates would increase or decrease annual interest expense by approximately **$0.2 million**[159](index=159&type=chunk) - The company utilizes interest rate swaps to mitigate risk. As of September 30, 2020, four swaps were outstanding with a total notional value of **$95.0 million**[160](index=160&type=chunk)[161](index=161&type=chunk) [Item 4. Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls were effective as of September 30, 2020, following the implementation of a new cloud-based accounting system, with no material COVID-19 impact on internal controls - Based on an evaluation, the CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period[166](index=166&type=chunk) - A new cloud-based accounting and financial reporting solution was implemented on July 1, 2020, with ongoing testing of related internal controls[167](index=167&type=chunk) - The company has not experienced any material impact to its internal controls over financial reporting due to the COVID-19 pandemic and the shift to remote work[167](index=167&type=chunk) [PART II. OTHER INFORMATION](index=37&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) This section details significant ongoing legal proceedings, including substantial claims from UPMC seeking up to **$266 million** and Zotec seeking up to **$177 million**, which the company intends to vigorously defend - Information regarding legal proceedings is incorporated by reference from Note 5, Commitments and Contingencies[170](index=170&type=chunk) - The company is a defendant in several lawsuits, including a case brought by UPMC seeking damages of **$124.0 million** to **$266.0 million**, and a case by Zotec seeking damages up to **$177.0 million**[32](index=32&type=chunk) [Item 1A. Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) The company identifies public health crises, particularly the COVID-19 pandemic, as a significant risk factor with potential adverse impacts on the global economy, client businesses, service demand, and financial results - The widespread outbreak of a communicable illness like COVID-19 is identified as a significant risk factor that could adversely affect the company's business, results of operations, and financial condition[172](index=172&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company issued **81,000** unregistered shares for acquisitions and repurchased **165,000** shares in Q3 2020, with **4.765 million** shares remaining available under its repurchase program - During the nine months ended September 30, 2020, approximately **81,000** shares of common stock were issued as payment for contingent consideration for previous acquisitions in private transactions[173](index=173&type=chunk) Issuer Purchases of Equity Securities (Q3 2020) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | July 2020 | — | — | | August 2020 | — | — | | September 2020 | 165,000 | $22.69 | | **Total Q3** | **165,000** | **$22.69** | - As of September 30, 2020, a maximum of **4.765 million** shares may still be purchased under the company's share repurchase plan[177](index=177&type=chunk) [Item 3. Defaults Upon Senior Securities](index=38&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable to the company for the reporting period - Not applicable[178](index=178&type=chunk) [Item 4. Mine Safety Disclosures](index=38&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company for the reporting period - Not applicable[179](index=179&type=chunk) [Item 5. Other Information](index=38&type=section&id=Item%205.%20Other%20Information) This item is not applicable to the company for the reporting period - Not applicable[179](index=179&type=chunk) [Item 6. Exhibits](index=39&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including a loan agreement amendment, CEO and CFO certifications, and interactive data files in XBRL format - Filed exhibits include the Second Amendment to the Loan Agreement with The Huntington National Bank[181](index=181&type=chunk) - CEO and CFO certifications required under Sarbanes-Oxley Sections 302 and 906 are included as exhibits[181](index=181&type=chunk)[182](index=182&type=chunk) - Interactive Data Files (XBRL documents) are also filed as exhibits[183](index=183&type=chunk)

CBIZ, Inc. (NYSE:CBZ) Q3 2020 Earnings Conference Call October 29, 2020 11:00 AM ET Company Participants Lori Novickis - Director, CR Jerry Grisko - President, CEO Ware Grove - CFO Conference Call Participants Chris Moore - CJS Securities Marc Riddick - Sidoti & Company Operator Good morning everyone and thank you for joining us for the CBIZ Third Quarter and Nine Months Conference Call. [Operator Instructions] I would now like to turn the conference over to Lori Novickis Director of Corporate Relations. Pl ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from________ to ________ Commission File Number 1-32961 CBIZ, Inc. (Exact name of registrant as specified in its charter) Delaware 22-2769024 (State or other jurisdiction of i ...

CBIZ, Inc. (NYSE:CBZ) Q2 2020 Earnings Conference Call July 30, 2020 11:00 AM ET Company Participants Lori Novickis - Director of Corporate Relations Jerry Grisko - President & Chief Executive Officer Ware Grove - Chief Financial Officer Conference Call Participants Andrew Nicholas - William Blair Chris Moore - CJS Securities Marc Riddick - Sidoti & Company Operator Welcome to the CBIZ Second Quarter 2020 Results Conference Call. All participants will be in a listen-only mode. [OperatorInstructions] After t ...

| --- | --- | --- | --- | --- | |----------------------------------|-------|-------|-------|-------| | | | | | | | | | | | | | SECOND-QUARTER & FIRST-HALF 2020 | | | | | | Investor Presentation | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 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 ...

CBIZ, Inc. (NYSE:CBZ) Q1 2020 Earnings Conference Call May 6, 2020 11:00 AM ET Company Participants Lori Novickis - Director of Corporate Relations Jerry Grisko - President & Chief Executive Officer Ware Grove - Chief Financial Officer Conference Call Participants Andrew Nicholas - William Blair Marc Riddick - Sidoti & Company Operator Good day and welcome to the CBIZ First Quarter 2020 Results Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentatio ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from________ to ________ Commission File Number 1-32961 CBIZ, Inc. (Exact name of registrant as specified in its charter) Delaware 22-2769024 (State or other jurisdiction of ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-32961 CBIZ, INC. (Exact name of registrant as specified in its charter) Delaware 22-2769024 (State or other jurisdiction of incorporation or organ ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from________ to ________ Commission File Number 1-32961 CBIZ, Inc. (Exact name of registrant as specified in its charter) Delaware 22-2769024 (State or other jurisdiction ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from________ to ________ Commission File Number 1-32961 CBIZ, Inc. (Exact name of registrant as specified in its charter) Delaware 22-2769024 (State or other jurisdiction of i ...