Core Viewpoint - The article emphasizes the importance of timing and sustainability in short-term investing, highlighting that a solid trend can lead to profitable investments if supported by strong fundamentals and positive earnings estimates [1][2]. Group 1: Stock Analysis - CBIZ (CBZ) has shown a significant price increase of 22.2% over the past 12 weeks, indicating strong investor interest and potential for further upside [4]. - The stock has also increased by 6% in the last four weeks, suggesting that the upward trend is still intact [5]. - Currently, CBZ is trading at 81.8% of its 52-week high-low range, indicating it may be on the verge of a breakout [6]. Group 2: Fundamental Strength - CBZ holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which are critical for near-term price movements [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term performance [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for identifying stocks like CBZ that have the fundamental strength to maintain their upward trends [3]. - The article suggests that there are multiple stocks passing through this screen, providing additional investment opportunities for trend-focused investors [8].

Core Insights - CBIZ, Inc. has announced that Brad Lakhia will succeed Ware H. Grove as Senior Vice President and Chief Financial Officer, effective March 17, 2025, as Grove retires after 24 years in the role [1][2]. Group 1: Leadership Transition - Brad Lakhia brings nearly 30 years of experience in finance, including roles in capital markets, M&A, treasury, and operational finance, making him well-suited for the CFO position at CBIZ [2][3]. - Jerry Grisko, President and CEO of CBIZ, emphasized Lakhia's financial acumen and leadership abilities, which will help maintain the company's strong financial performance [3]. - Lakhia expressed enthusiasm about joining CBIZ and highlighted the company's recent merger with Marcum, which enhances its service offerings [4]. Group 2: Company Background - CBIZ, Inc. is a leading professional services advisor to middle market businesses, providing expertise in accounting, tax, advisory, benefits, insurance, and technology [5]. - The company has over 10,000 team members across more than 160 locations in 21 major markets nationwide [5].

Core Viewpoint - The article emphasizes the importance of identifying and maintaining trends in short-term investing, highlighting that sound fundamentals and positive earnings estimates are crucial for sustaining momentum in stocks [1]. Group 1: Recent Price Strength Screen - The "Recent Price Strength" screen is a unique short-term trading strategy that helps identify stocks with strong fundamentals capable of maintaining an uptrend [2]. - This screen filters stocks that are trading in the upper portion of their 52-week high-low range, indicating bullish sentiment [2]. Group 2: CBIZ (CBZ) Analysis - CBIZ has shown a solid price increase of 9.8% over the past 12 weeks, indicating investor confidence in its potential upside [3]. - The stock has experienced a price increase of 21.7% over the last four weeks, confirming that the upward trend is still intact [4]. - CBIZ is currently trading at 81% of its 52-week high-low range, suggesting it may be on the verge of a breakout [5]. Group 3: Fundamental Strength - CBIZ holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [5]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [6]. Group 4: Additional Insights - The price trend for CBIZ is expected to remain stable, with several other stocks also passing through the "Recent Price Strength" screen, indicating potential investment opportunities [7]. - The article suggests utilizing various Zacks Premium Screens tailored to different investing styles to identify winning stock picks [7].

Revenue Performance - Revenue for Q3 2024 increased by $28.3 million, or 6.9%, to $438.9 million compared to $410.5 million in Q3 2023[66] - Same-unit revenue for Q3 2024 rose by approximately $20.8 million, or 5.1%, compared to the same period in 2023[66] - Revenue for the nine months ended September 30, 2024, increased by $89.5 million, or 7.1%, to $1,353.2 million from $1,263.6 million in the same period of 2023[66] - For the three months ended September 30, 2024, total revenue increased by 8.0% to $322.3 million from $298.4 million in the same period in 2023[94] - For the nine months ended September 30, 2024, total revenue grew by 7.7% to $1,004.2 million from $932.4 million in the same period in 2023[96] - Same-unit revenue for the nine months ended September 30, 2024 increased by $41.7 million, or 4.5%, across almost all service lines[96] Net Income and Earnings Per Share - Net income for Q3 2024 was $35.1 million, or $0.70 per diluted share, compared to $33.7 million, or $0.67 per diluted share, in Q3 2023[66] Operating Expenses - Total operating expenses for Q3 2024 were $365.971 million, an increase of $23.823 million, or 7.0%, from $342.148 million in Q3 2023[74] - Total operating expenses for the three months ended September 30, 2024 increased by $23.8 million, or 7.0%, to $366.0 million compared to $342.1 million in the same period of 2023[75] - For the nine months ended September 30, 2024, total operating expenses increased by $81.7 million, or 8.0%, to $1,108.8 million compared to $1,027.1 million in the same period of 2023[76] - Operating expenses for the three months ended September 30, 2024 increased by $11.0 million, or 4.4%, compared to the same period last year[95] - Operating expenses for the nine months ended September 30, 2024 rose by $51.4 million, or 7.0%, compared to the same period last year[97] General and Administrative Expenses - G&A expenses for the three months ended September 30, 2024 were $23.2 million, an increase of $10.1 million or 76.8% compared to $13.1 million in the same period of 2023[77] - G&A expenses for the nine months ended September 30, 2024 were $64.0 million, an increase of $19.5 million or 43.7% compared to $44.5 million in the same period of 2023[78] Interest Expense and Debt - Interest expense for the three months ended September 30, 2024 was $(4.968) million, a decrease of $0.880 million or 15.0% compared to $(5.848) million in the same period of 2023[80] - Average debt balance for the three months ended September 30, 2024 was $350.7 million with a weighted average effective interest rate of 5.37% compared to $398.3 million and 5.53% for the same period of 2023[82] - As of November 1, 2024, the company had $1,465.5 million outstanding debt under the 2024 Credit Facilities[68] - The outstanding balance under the 2022 credit facility was $337.3 million as of September 30, 2024, with $187.3 million subject to interest rate risk[137] - If market rates change by 100 basis points, interest expense would increase or decrease approximately $1.9 million annually based on the 2022 credit facility[137] - As of November 1, 2024, the outstanding debt under the 2024 Credit Facilities was $1,465.5 million, with $1,315.5 million subject to rate risk[137] - A 100 basis point change in market rates would result in an annual interest expense increase or decrease of approximately $13.2 million under the 2024 Credit Facilities[137] Acquisitions - The company completed three acquisitions for $22.5 million in cash during the nine months ended September 30, 2024[68] - Cash used in investing activities during the nine months ended September 30, 2024, was $24.9 million, primarily for business acquisitions totaling $22.9 million[119] Other Income and Changes - Other income, net for the three months ended September 30, 2024 was $1.285 million, compared to a net loss of $(8.059) million for the same period in 2023, representing a change of $9.344 million[80] - Total other income, net for the three months ended September 30, 2024 was $15, a decrease of 99.0% compared to $1,574 in the same period in 2023[92] - Total other income (expense), net increased by $6.2 million during the three months ended September 30, 2024, including a net gain of $8.4 million from the deferred compensation plan[114] - For the nine months ended September 30, 2024, total other income (expense), net increased by $6.9 million, with a net gain of $20.6 million from the deferred compensation plan[115] Cash Flow and Working Capital - Cash provided by operating activities for the nine months ended September 30, 2024, was $68.2 million, compared to $57.3 million for the same period in 2023[118] - The company experienced a working capital use of $108.4 million during the nine months ended September 30, 2024, offset by net income of $131.8 million[118] - Cash used in financing activities for the nine months ended September 30, 2024, was $85.2 million, which included $24.9 million in net proceeds from the credit facility[121] - The net decrease in cash, cash equivalents, and restricted cash for the nine months ended September 30, 2024, was $41.965 million, compared to a decrease of $37.818 million for the same period in 2023[120] Tax Rate - The effective tax rate for the three months ended September 30, 2024 was 31.2%, up from 28.6% in the same period in 2023[89] Financial Services Performance - The Financial Services practice group recorded a gross margin of 19.1% for the three months ended September 30, 2024, compared to 16.3% in the prior year[92] Client Investments - Investments from clients' accounts are segregated and may be invested in short-term investments, all of which carry an investment grade rating at acquisition[137] - Fair value adjustments for investments are recorded in other comprehensive income or loss, impacting the Condensed Consolidated Statements of Comprehensive Income[137] Interest Rate Management - The company has several interest rate swaps with notional amounts totaling $150 million, with fixed rates ranging from 0.834% to 4.488%[138] - The company does not engage in trading market risk sensitive instruments and uses interest rate swaps to manage interest rate risk exposure[137] Forward-Looking Statements - The company undertakes no obligation to publicly update forward-looking statements except as required by law[135]

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EXPECTED COMBINED ANNUALIZED REVENUE OF ~$2.8BCLEVELAND, Nov. 1, 2024 /PRNewswire/ -- CBIZ, Inc. (NYSE: CBZ) (the "Company"), a leading national professional services advisor, today announced it has completed the acquisition of the non-attest business of Marcum LLP ("Marcum"), with expected combined annualized revenue of approximately $2.8 billion. The transaction makes CBIZ the largest full-service professional services advisor of its kind in the U.S. providing accounting, tax, advisory, benefits, insuranc ...

ACCOUNTING | INSURANCE | ADVISORY Third Quarter 2024 Investor Presentation October 29, 2024 Except certain related non-recurring legal and professional services costs incurred, this presentation does not include the impact of the announced acquisition of Marcum, LLP ("Marcum") that is expected to close in the fourth quarter, subject to the satisfaction of various closing conditions. CBIZ.COM | NYSE: CBZ Forward-Looking Statements Forward-looking statements in this presentation are made pursuant to the safe ...

CBIZ, Inc. (NYSE:CBZ) Q3 2024 Earnings Conference Call October 29, 2024 11:00 AM ET Company Participants Lori Novickis - Director, Corporate Relations Jerome Grisko - President & CEO Ware Grove - SVP & CFO Conference Call Participants Andrew Nicholas - William Blair Christopher Moore - CJS Securities Marc Riddick - Sidoti Operator Good morning, everyone, and welcome to the CBIZ Third Quarter and Nine Months 2024 Results Conference Call. All participants will be in a listen-only mode. [Operator Instructions] ...

Financial Performance - Total revenue for Q3 2024 was $438.9 million, an increase of 6.9% compared to Q3 2023[4] - Net income for Q3 2024 was $35.1 million, or $0.70 per diluted share, up from $33.7 million, or $0.67 per diluted share in Q3 2023[4] - Adjusted EBITDA for Q3 2024 was $75.7 million, a 23.0% increase from $61.6 million in Q3 2023[8] - For the nine months ended September 30, 2024, total revenue was $1.4 billion, up 7.1% from $1.263 billion in the same period of 2023[3] - Adjusted earnings per share for Q3 2024 increased by 27.3% to $0.84, compared to $0.66 in Q3 2023[8] - Revenue for the three months ended September 30, 2024, was $438,884 thousand, a 6.9% increase from $410,539 thousand in the same period of 2023[19] - Adjusted net income for the three months ended September 30, 2024, was $42,318,000, with an EPS of $0.84, compared to $33,222,000 and an EPS of $0.66 in the same period of 2023[29] Guidance and Projections - The company expects total revenue growth of 7% to 9% for the full year 2024[12] - GAAP fully diluted earnings per share for 2024 are projected to be between $2.37 and $2.42[13] - Full Year 2024 GAAP Diluted EPS Guidance is projected to be between $2.37 and $2.42[33] - Adjusted Diluted EPS Guidance for 2024 is expected to range from $2.64 to $2.69[33] - The company anticipates a 1% decrease to a 1% increase in GAAP Diluted EPS for 2024, and a 10% to 12% increase in Adjusted Diluted EPS[33] Acquisition Impact - CBIZ incurred approximately $14.8 million in fees related to the acquisition of Marcum LLP, impacting GAAP earnings by $0.20 per diluted share in Q3 2024[7] - The Marcum acquisition is expected to close in Q4 2024, with combined annual revenues projected at approximately $2.8 billion[11] - Legal and professional service costs were incurred in connection with the announced purchase of Marcum[32] - The guidance excludes the impact of the announced acquisition of Marcum[33] Operating Metrics - Operating income decreased to $49,686 thousand, representing 11.3% of revenue, down from 13.5% in the prior year[19] - Operating income for the nine months ended September 30, 2024, was $180,381 thousand, down from $191,974 thousand in the same period of 2023[23] - Corporate general and administrative expenses increased to $23,227 thousand, or 5.3% of revenue, compared to $13,136 thousand, or 3.2% in 2023[19] - Other income (expense), net for the three months ended September 30, 2024, was $1,300 thousand, compared to an expense of $2,288 thousand in the same period of 2023[19] Balance Sheet and Cash Flow - Cash and cash equivalents at the end of the period were $115,183,000, down from $122,327,000 at the end of September 30, 2023[27] - Total assets increased to $2,133,370,000 as of September 30, 2024, compared to $2,043,592,000 at the end of December 31, 2023[28] - The company reported a debt to equity ratio of 36.2% as of September 30, 2024, down from 39.3% at the end of December 31, 2023[28] - The company experienced a decrease in net cash used in investing activities, which was $24,911,000 for the nine months ended September 30, 2024, compared to $76,630,000 in the same period of 2023[27] - Total liabilities decreased to $1,205,450,000 as of September 30, 2024, from $1,251,974,000 at the end of December 31, 2023[28] Non-Recurring Costs - Non-recurring costs related to acquisitions include consulting, technology, and personnel expenses[32] - Incremental non-recurring lease expenses were incurred due to real estate optimization efforts[32] - Adjustments for 2024 include $0.31 in transaction costs and $(0.04) in other adjustments[33] - The company’s performance measures exclude significant non-operating related gains and losses[31] Other Metrics - Days sales outstanding (DSO) increased to 97 days as of September 30, 2024, compared to 78 days at the end of December 31, 2023[28] - The company’s gross margin for Financial Services was $61,656,000 for the three months ended September 30, 2024, compared to $48,692,000 in the same period of 2023[26] - Net income for the nine months ended September 30, 2024, was $131,761,000, slightly down from $133,705,000 in the same period of 2023[27]

CBIZ (CBZ) came out with quarterly earnings of $0.84 per share, beating the Zacks Consensus Estimate of $0.75 per share. This compares to earnings of $0.66 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 12%. A quarter ago, it was expected that this provider of outsourced business services would post earnings of $0.64 per share when it actually produced earnings of $0.50, delivering a surprise of -21.88%. Over the last four qu ...