CBIZ(CBZ) - 2024 Q3 - Quarterly Report

Revenue Performance - Revenue for Q3 2024 increased by $28.3 million, or 6.9$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$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$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$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$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$23.2 million, an increase of $10.1 million or 76.8$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 $0.880 million or 15.0$(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$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$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]