Core Viewpoint - CBIZ, Inc. will announce its financial results for Q4 and the full year of 2024 on February 26, 2025, before market opening [1] Group 1: Financial Results Announcement - The financial results will be disclosed before markets open on February 26, 2025 [1] - A conference call to discuss the results will be hosted by the President and CEO Jerry Grisko and CFO Ware Grove at 11 a.m. (ET) on the same day [2] - The conference call will be available via live webcast on the investor relations page of the CBIZ website, with an archived replay accessible afterward [2] Group 2: Investor Participation - Investors can register online to receive the dial-in number and a unique personal identification number for the conference call [3] - Registration is open at any time, including up to and after the call start time [3] Group 3: Company Overview - CBIZ, Inc. is a leading professional services advisor to middle market businesses and organizations across the U.S. [4] - The company has over 10,000 team members in more than 160 locations across 22 major markets [4] - CBIZ specializes in accounting, tax, advisory, benefits, insurance, and technology services, providing insights and solutions to help clients grow [4]

Core Insights - 53.2% of CEOs express strong concern over the financial impact of tariffs, prompting significant operational changes [2][4] - The survey indicates a rebound in CEO optimism, with 45.0% rating their outlook as highly positive in December, up from 34.5% in September [3] - Economic concerns remain the top issue for CEOs, cited by 55.1%, followed by talent availability at 37.5% and increasing cybersecurity concerns [6] Tariff Impact - 80.9% of CEOs are considering relocating production to mitigate tariff-related costs [4] - 75.4% may reduce their workforce, while 72.3% plan to delay investments [4] - 66.4% are exploring new supplier options, and 50.0% are contemplating price increases [4] Tax Policy Perspectives - 42.6% of CEOs reported moderate benefits from the Tax Cuts and Jobs Act (TCJA), with 51.9% anticipating positive effects if TCJA provisions are extended [5] - 43.3% have benefited from the Inflation Reduction Act (IRA), but nearly half (47.7%) reported no tangible gains [5] Survey Methodology - The CBIZ-Hofstra Survey polled 256 mid-market CEOs and leaders from companies with revenues ranging from $5 million to over $1 billion, conducted the week of December 9, 2023 [8]

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 ...

Company Overview - CBIZ has more than 120 offices and 6,700 team members serving over 100,000 clients nationwide[6] - The company's revenue breakdown for 2023 includes 73% from financial services and 24% from benefits & insurance services[7] - CBIZ boasts a high client retention rate of approximately 90%[12] Financial Performance & Growth - From 2019 to 2023, CBIZ achieved a revenue Compound Annual Growth Rate (CAGR) of 13.8%[25] - From 2019 to 2023, CBIZ achieved an Adjusted EPS Growth CAGR of 17.6%[25] - Total revenue grew 67.8% from $948.4 million in 2019 to $1,591.2 million in 2023[28] - Adjusted EBITDA increased 86.1% from $120.2 million in 2019 to $223.8 million in 2023[28] 2024 Guidance - The company projects revenue growth of +7% to 9% for 2024[29] - Adjusted diluted EPS is expected to grow +10% to 12% in 2024[29] - The company anticipates a tax rate of approximately 28% for 2024[29]

Financial Data and Key Metrics Changes - Total revenue for the first nine months of 2024 increased by 7.1%, with third-quarter revenue up by 6.9% [7][17] - Adjusted earnings per share for the third quarter was reported at $0.84, up over 27% compared to the same quarter a year ago [16] - Full year 2024 adjusted earnings per share is expected to increase within a range of 10% to 12% over the $2.41 reported for 2023 [29] Business Line Data and Key Metrics Changes - Financial Services division revenue increased by 8.0% in the third quarter, with same unit revenue up by 5.2% [17] - Benefits and Insurance division revenue was up 3.7% for the third quarter, with all growth being organic [18] Market Data and Key Metrics Changes - Client sentiment has waned somewhat compared to the same period last year, with concerns around the pending national election and geopolitical issues impacting investment decisions [11][12] - The government health care consulting business continues to show strong performance, driven by new contracts and expansion of existing projects [10] Company Strategy and Development Direction - The company is in the final stages of closing the acquisition of Marcum, which is expected to enhance its position as the largest provider of professional services to middle-market businesses [30][31] - Integration planning for the Marcum acquisition is underway, with a focus on leveraging combined strengths and expanding service offerings [27][30] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the economic outlook, despite client concerns regarding inflation and market volatility [12][13] - The company reaffirms its full-year guidance for 2024, anticipating continued strong performance [13][26] Other Important Information - The company incurred significant one-time non-recurring merger-related expenses in connection with the Marcum acquisition [15] - Days sales outstanding for the nine months was 97 days, compared to 96 days a year ago, indicating stable receivables management [20] Q&A Session Summary Question: Feedback on Marcum acquisition and post-integration leadership structure - Management reported positive feedback from both CBIZ and Marcum teams, with excitement about the opportunities from the merger [35][39] - Leadership structure details are forthcoming, with a blend of teams from both organizations expected [40][41] Question: Strength in advisory services and M&A transaction size - Advisory services showed strong performance across the board, with increased activity in private equity advisory [42][43] Question: Pricing dynamics and organic growth - Pricing increases have been a significant driver of organic growth, with expectations for pricing to stabilize in the future [44][46] Question: Government health care services growth - Government health care services are experiencing healthy growth, recovering from previous downturns [47] Question: Deleveraging post-acquisition - Initial leverage levels post-acquisition are expected to be between 3.25x to 3.5x EBITDA, with plans for rapid deleveraging [48][50] Question: Client retention trends - Client retention rates for Marcum are similar to those of CBIZ, indicating strong client loyalty [57]