~60,000 BUSINESS CLIENTS 8 National Resources & Expertise CBIZ, INC. | NYSE: CBZ 9 Accounting Provider Nationally 2023 by Accounting Today Government Health Care Consulting 100,000+ TOTAL CLIENTS CBIZ, INC. | NYSE: CBZ STRENGTH STRENGTH National Resources/Specialization National Providers Local / Regional Proximity and Relationship We out-local the nationals and out-national the locals. Top 12 Accounting Firms 2024 by Vault Revenue Operating Income Operating Margin $1.0B $160.0M 15.8% CBIZ, INC. | NYSE: CBZ ...

For the transition period from________ to ________ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth c ...

Company Overview - CBIZ has over 120 offices and 6,500 team members serving more than 100,000 clients nationwide[5] - The company's revenue is divided into Financial Services (72%) and Benefits & Insurance Services (25%), with National Practices contributing 3% in 2022[8] - CBIZ boasts a client retention rate of approximately 90%[13] Financial Performance & Growth - CBIZ's revenue grew from $922 million in 2018 to $1.412 billion in 2022, representing a 53.1% total growth and an 11.2% compound annual growth rate (CAGR)[57] - Pre-tax income increased from $79.8 million in 2018 to $141.5 million in 2022, a 77.3% total growth[57] - Adjusted earnings per share (EPS) have a compounded annual growth rate of 18.2% since 2018[53] Strategic Initiatives - The company focuses on organic growth and external growth through mergers and acquisitions (M&A)[39] - CBIZ's M&A strategy targets companies with cultural fit, a desire for a greater national platform, and enhanced client service capabilities[41] - Strategic acquisitions YTD amounted to $84.2 million[75] 2023 Outlook - The company anticipates revenue growth between 10% and 12% for 2023[44] - GAAP EPS growth is projected between 15% and 17%, while adjusted EPS growth is expected to be between 11% and 13%[44] - The weighted average fully diluted share count is estimated to be between 50.5 million and 51.0 million[44]

Financial Data and Key Metrics - Total revenue for Q2 2023 increased by $36.6 million, up 10.1% YoY, with same-unit revenue up $15.0 million or 4.1% [31] - For the first half of 2023, total revenue grew by $99.4 million, up 13.2% YoY, with same-unit revenue up $53.9 million or 7.2% [38] - Adjusted EBITDA for the first half of 2023 was $167.8 million, up 12.9% YoY [41] - Adjusted earnings per share for the first half of 2023 was $2.01, up 11% YoY [41] - The company raised full-year revenue guidance to 10%-12% growth and affirmed adjusted EPS guidance of 11%-13% growth [10] Business Line Performance Financial Services - Q2 2023 total revenue grew by $31.6 million, up 12.2% YoY, with same-unit revenue up $10 million or 3.9% [8][18] - For the first half of 2023, total revenue grew by $86 million, up 15.7% YoY, with same-unit revenue up 7.4% [18] - Core accounting and tax services remained strong, with advisory services also showing strong demand [8] Benefits and Insurance - Q2 2023 same-unit revenue grew 4.5%, with 6.4% growth for the first half of 2023 [19] - Employee Benefits and Property & Casualty Insurance both saw high client retention rates above 90% [9] - The company continues to invest in hiring new business producers to drive growth [19] Market Performance - The Government Health Care consulting business, with $185 million in annual revenue, experienced delays in project work, impacting Q2 results [14][16] - The delayed tax filing in California impacted Q2 and first-half results, with an estimated $0.04 per share impact [34] - The company expects stronger results in the second half of 2023 for both Government Health Care and California tax work [37] Strategic Direction and Industry Competition - The company completed four acquisitions in the first half of 2023, including Somerset CPAs and Advisors, Pivot Point Security, and American Pension Advisors [40][70][72] - The M&A pipeline remains active, with a focus on strategic acquisitions to enhance service offerings [74] - The company is investing in cybersecurity and retirement plan consulting to meet growing client demand [70][72] Management Commentary on Operating Environment and Outlook - Management highlighted headwinds from higher interest rates and tax rates, impacting earnings by $0.09 and $0.04 per share, respectively [11][32] - The company expects expenses to normalize below pre-pandemic levels but acknowledges year-over-year headwinds [21] - Management remains optimistic about the second half of 2023, projecting stronger results and continued growth [37][90] Other Key Information - The company repurchased 975,000 shares in the first half of 2023 at a cost of $48.5 million [43] - Leverage stands at 2x adjusted EBITDA, with $178 million of unused capacity on a $600 million facility [22][47] - Capital spending for 2023 is expected to be $15 million to $20 million, primarily for tenant improvements and office facilities [94] Q&A Session Summary Question: Impact of the delayed Government Health Care consulting project - The delay of a significant contract renewal into 2024 impacted Q2 results, with immediate actions taken to align costs with projected revenue [77] Question: Cybersecurity opportunity and Pivot Point acquisition - The company has high client demand for cybersecurity services and sees Pivot Point as a strategic fit to enhance advisory offerings [79][80] Question: M&A pipeline and pricing trends - The M&A pipeline remains active, with no significant changes in pricing despite higher interest rates [81][82] Question: Investment in headcount and technology - The company continues to invest in new business producers, particularly in Benefits and Insurance, while maintaining technology spend at consistent levels [86][99] Question: Customer trends and economic outlook - Small and middle-market businesses remain optimistic, with rising interest rates and access to credit being noted but not materially impacting business [65]

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, 2023 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 (State or other jurisdiction of incorporatio ...

CBIZ, Inc. (NYSE:CBZ) Q1 2023 Results Conference Call April 27, 2023 11:00 AM ET Company Participants Lori Novickis - Director of Corporate Relations Jerry Grisko - President and Chief Executive Officer Ware Grove - Chief Financial Officer Conference Call Participants Christopher Moore - CJS Securities Andrew Nicholas - William Blair Marc Riddick - Sidoti Operator Hello, and welcome to the CBIZ Q1 2023 Earnings Call [Operator Instructions]. Please note, this event is being recorded. I would now like to turn ...

CBIZ, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (In thousands, except per share data) CBIZ, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) (In thousands) 5 CBIZ, INC. AND SUBSIDIARIES NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 2. NEW ACCOUNTING PRONOUNCEMENTS | --- | --- | --- | --- | --- | |-----------------------------------------------------|-------|----------------------------|-- ...

Part I [Item 1. Business](index=5&type=section&id=Item%201.%20Business) CBIZ provides financial, insurance, and advisory services through three practice groups, focusing on organic growth, cross-serving, and acquisitions - CBIZ operates through three main practice groups: **Financial Services, Benefits and Insurance Services, and National Practices**[18](index=18&type=chunk) Revenue by Practice Group (in thousands) | Practice Group | 2022 Revenue | % of Total | 2021 Revenue | % of Total | 2020 Revenue | % of Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Financial Services | $1,010,068 | 71.5% | $734,026 | 66.4% | $629,778 | 65.3% | | Benefits and Insurance Services | $358,007 | 25.4% | $332,323 | 30.1% | $297,758 | 30.9% | | National Practices | $43,904 | 3.1% | $38,576 | 3.5% | $36,361 | 3.8% | | **Total CBIZ Revenue** | **$1,411,979** | **100.0%** | **$1,104,925** | **100.0%** | **$963,897** | **100.0%** | - The company's growth model is based on three key components: **internal organic growth, cross-serving additional services to existing clients, and strategic acquisitions**[32](index=32&type=chunk)[33](index=33&type=chunk)[37](index=37&type=chunk)[38](index=38&type=chunk) - CBIZ maintains Administrative Service Agreements (ASAs) with independent CPA firms, such as Mayer Hoffman McCann, P.C., to provide administrative support for attest services[27](index=27&type=chunk)[28](index=28&type=chunk) - The company serves a diverse base of over **100,000 clients**, including 60,000 business clients and 40,000 individual clients[39](index=39&type=chunk) - The company is subject to extensive regulation, including rules from the **SEC, Sarbanes-Oxley Act, HIPAA**, and various state accountancy and insurance laws[520](index=520&type=chunk)[521](index=521&type=chunk)[522](index=522&type=chunk)[523](index=523&type=chunk) [Item 1A. Risk Factors](index=10&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from dependence on key personnel, potential goodwill impairment, acquisition integration, cybersecurity, and regulatory changes - The company is dependent on its executive officers and key employees, and the inability to retain them could **materially harm the business**[542](index=542&type=chunk) - Goodwill and other intangible assets totaled **$819.9 million** and **$131.8 million**, respectively, at year-end 2022[545](index=545&type=chunk) - The success of the company's acquisition strategy depends on its ability to **successfully integrate acquired businesses**[552](index=552&type=chunk) - **Cyber-attacks or security breaches** could adversely affect the business, with potential for loss of business, litigation, and regulatory penalties[553](index=553&type=chunk) - Changes in **healthcare legislation** could adversely affect revenue and margins in the employee benefits business[552](index=552&type=chunk) - The company faces competition from a variety of national, regional, and local professional services firms[555](index=555&type=chunk) [Item 1B. Unresolved Staff Comments](index=17&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - There are **no unresolved staff comments**[567](index=567&type=chunk) [Item 2. Properties](index=17&type=section&id=Item%202.%20Properties) The company's corporate headquarters and over 120 offices are located in leased premises across 33 states and the District of Columbia - The company's corporate headquarters and over **120 offices** are in leased premises[568](index=568&type=chunk) [Item 3. Legal Proceedings](index=17&type=section&id=Item%203.%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from Note 11 of the consolidated financial statements - Details on legal proceedings are provided in **Note 11** to the consolidated financial statements[569](index=569&type=chunk) [Item 4. Mine Safety Disclosures](index=17&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[570](index=570&type=chunk) Part II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=18&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on the NYSE, with no history of cash dividends, and the company actively repurchased shares in Q4 2022 - The company's common stock is traded on the New York Stock Exchange (NYSE) under the symbol **"CBZ"**[50](index=50&type=chunk) - CBIZ has historically **not paid cash dividends** on its common stock, and its credit facility contains restrictions on dividend payments[51](index=51&type=chunk) Issuer Purchases of Equity Securities (Q4 2022) | Period | Total Shares Purchased (thousands) | Average Price Paid Per Share | Total Shares Purchased as Part of Plan (thousands) | Max Shares Remaining Under Plan (thousands) | | :--- | :--- | :--- | :--- | :--- | | Oct 1 – Oct 31, 2022 | 451 | $45.91 | 451 | 3,046 | | Nov 1 – Nov 30, 2022 | 434 | $48.40 | 434 | 2,612 | | Dec 1 – Dec 31, 2022 | 265 | $49.31 | 265 | 2,347 | | **Total Q4 2022** | **1,150** | **$47.63** | **1,150** | **2,347** | [Item 6. [Reserved]](index=19&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Fiscal year 2022 saw significant growth in revenue and income, driven by acquisitions and organic performance, with strong operating cash flow [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to interest rate risk from its floating-rate debt, which it mitigates using interest rate swap agreements - A **100 basis point (1%) change** in interest rates would increase or decrease annual interest expense by approximately **$1.5 million**[156](index=156&type=chunk) - The company uses interest rate swaps to manage exposure, with four swaps outstanding with a total notional value of **$115.0 million**[126](index=126&type=chunk)[155](index=155&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=32&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section incorporates by reference the Financial Statements, notes, auditor's report, and Supplementary Data included under Item 15(a) - The financial statements and supplementary data are included in **Item 15(a)** of the report[128](index=128&type=chunk) [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=32&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - **None reported**[130](index=130&type=chunk) [Item 9A. Controls and Procedures](index=33&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal controls over financial reporting were effective, excluding two recent acquisitions - Based on their evaluation, the CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of the end of the period[132](index=132&type=chunk) - Management concluded that internal control over financial reporting was **effective** as of December 31, 2022[160](index=160&type=chunk) - The assessment of internal controls excluded the 2022 acquisitions of **Marks Paneth LLP and Stinnett & Associates, LLC**[81](index=81&type=chunk)[133](index=133&type=chunk) [Item 9B. Other Information](index=33&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - **None reported**[162](index=162&type=chunk) [Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=34&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - **Not applicable**[183](index=183&type=chunk) Part III [Item 10. Directors, Executive Officers and Corporate Governance](index=34&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) This section provides information on the company's leadership and governance, with further details incorporated from the 2023 Proxy Statement - **Jerome P. Grisko, Jr.** serves as President & Chief Executive Officer and a Director[166](index=166&type=chunk)[185](index=185&type=chunk) - **Ware H. Grove** serves as Senior Vice President and Chief Financial Officer[185](index=185&type=chunk)[191](index=191&type=chunk) - **Rick L. Burdick** serves as the independent Chairman of the Board[185](index=185&type=chunk) - The company has adopted a **Code of Professional Conduct and Ethics Guide** applicable to its principal officers[164](index=164&type=chunk) [Item 11. Executive Compensation](index=37&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the company's 2023 Definitive Proxy Statement - Information is incorporated by reference from the **2023 Proxy Statement**[227](index=227&type=chunk)[236](index=236&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=37&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership is incorporated by reference from the company's 2023 Definitive Proxy Statement - Information is incorporated by reference from the **2023 Proxy Statement**[228](index=228&type=chunk) [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=37&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on related transactions and director independence is incorporated by reference from the company's 2023 Definitive Proxy Statement - Information is incorporated by reference from the **2023 Proxy Statement**[231](index=231&type=chunk) [Item 14. Principal Accounting Fees and Services](index=38&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information on fees for the independent auditor, KPMG LLP, is incorporated by reference from the company's 2023 Definitive Proxy Statement - The company's independent auditor is **KPMG LLP**, with further information incorporated by reference from the 2023 Proxy Statement[232](index=232&type=chunk) Part IV [Item 15. Exhibits, Financial Statement Schedules](index=38&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists the financial statements, schedules, and exhibits filed with the report, including required CEO and CFO certifications - This section contains the Index to Financial Statements and a list of all exhibits filed with the **Form 10-K**[195](index=195&type=chunk)[234](index=234&type=chunk) [Financial Statements and Supplementary Data](index=43&type=section&id=Financial%20Statements%20and%20Supplementary%20Data) The audited consolidated financial statements for the three years ended December 31, 2022, show significant growth in assets, liabilities, and net income [Report of Independent Registered Public Accounting Firm](index=44&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) KPMG LLP issued unqualified opinions on the financial statements and the effectiveness of internal controls over financial reporting - KPMG LLP provided an **unqualified audit opinion** on both the consolidated financial statements and the effectiveness of internal control over financial reporting[182](index=182&type=chunk) - The audit of internal control over financial reporting excluded an evaluation of the internal controls of the recently acquired **Marks Paneth LLP and Stinnett & Associates, LLC**[81](index=81&type=chunk) [Consolidated Financial Statements](index=46&type=section&id=Consolidated%20Financial%20Statements) The financial statements show significant year-over-year growth in revenue and net income, with corresponding increases in assets and liabilities Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Total current assets | $568,426 | $451,674 | | Goodwill and other intangible assets, net | $951,702 | $840,783 | | **Total assets** | **$1,879,124** | **$1,627,934** | | Total current liabilities | $512,407 | $423,289 | | Total long-term debt | $263,654 | $154,851 | | **Total liabilities** | **$1,165,672** | **$923,386** | | **Total stockholders' equity** | **$713,452** | **$704,548** | Consolidated Statement of Comprehensive Income Highlights (in thousands) | Account | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Revenue | $1,411,979 | $1,104,925 | $963,897 | | Operating income | $168,344 | $72,672 | $92,480 | | Income from continuing operations | $105,372 | $70,911 | $78,347 | | **Net income** | **$105,354** | **$70,887** | **$78,299** | | Diluted EPS (Net income) | $2.01 | $1.32 | $1.41 | [Notes to Consolidated Financial Statements](index=51&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, acquisitions, debt facilities, segment performance, and the company's share repurchase programs - Fees earned under Administrative Service Agreements (ASAs) with CPA firms were approximately **$235.4 million in 2022**, $174.8 million in 2021, and $159.4 million in 2020[296](index=296&type=chunk) - Goodwill is tested for impairment annually at the reporting unit level, and **no impairment was recognized in 2022**[216](index=216&type=chunk)[357](index=357&type=chunk) - In May 2022, the company entered into a new **$600 million credit facility** maturing in 2027, replacing its previous $400 million facility[377](index=377&type=chunk) - The company repurchased **2.8 million shares for $122.8 million** in 2022 and 3.0 million shares for $96.4 million in 2021[447](index=447&type=chunk) 2022 Acquisitions Summary (in thousands) | Metric | Amount | | :--- | :--- | | Cash paid | $79,141 | | Recorded contingent consideration | $74,199 | | **Total recorded purchase price** | **$155,008** | | Identifiable intangible assets acquired | $53,400 | | Goodwill | $79,147 | Segment Income Before Tax (in thousands) | Segment | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Financial Services | $160,712 | $125,762 | $104,219 | | Benefits and Insurance Services | $70,006 | $67,784 | $49,666 | | National Practices | $4,713 | $4,085 | $3,725 | | Corporate and Other | $(93,938) | $(104,591) | $(54,122) | | **Total** | **$141,493** | **$93,040** | **$103,488** |

CBIZ, Inc. (NYSE:CBZ) Q4 2022 Earnings Conference Call February 16, 2023 11:00 AM ET Company Participants Lori Novickis - Director, Corporate Relations Jerome Grisko - President, CEO & Director Ware Grove - SVP & CFO Conference Call Participants Christopher Moore - CJS Securities Andrew Nicholas - William Blair & Company Marc Riddick - Sidoti & Company Operator Good day, and welcome to the CBIZ Fourth Quarter 2022 Results Call. [Operator Instructions]. Please note this event is being recorded. I would now l ...

CBIZ, Inc (NYSE:CBZ) Q3 2022 Earnings Conference Call October 27, 2022 11:00 AM ET Company Participants Lori Novickis - Director, Corporate Relations Jerry Grisko - President and Chief Executive Officer Ware Grove - Senior Vice President and Chief Financial Officer Conference Call Participants Stefanos Cris - CJS Securities Andrew Nicholas - William Blair Marc Riddick - Sidoti Operator Good day, and welcome to the CBIZ Third Quarter 2022 Results Call. All participants will be in a listen-only mode. [Operato ...