CBIZ(CBZ) - 2025 Q1 - Quarterly Results

Financial Performance - CBIZ reported first-quarter 2025 revenue of $838.0 million, a 69.5$494.3 million in the same period of 2024[6]. - Net income for the first quarter of 2025 was $122.8 million, or$1.91 per diluted share, compared to $76.9 million, or$1.53 per diluted share, in the prior year, reflecting a 59.7% increase in net income[6][9]. - Adjusted EBITDA for the first quarter of 2025 was $237.6 million, up 100.0$118.8 million in the same quarter of 2024[7]. - Adjusted net income for the first quarter of 2025 was $147.2 million, or$2.29 per diluted share, a 79.7% increase compared to $81.9 million, or$1.63 per diluted share, in the same period last year[7]. - CBIZ's operating income for the first quarter of 2025 was $200.0 million, representing 23.9$99.1 million, or 20.0% of revenue, in the same quarter of 2024[22]. - For the three months ended March 31, 2025, total revenue increased to $838,014 thousand, up 69.5$494,297 thousand in the same period of 2024[28]. - Net income for the three months ended March 31, 2025, was $122,773 thousand, a 59.8$76,884 thousand in 2024[30]. - Adjusted EBITDA for the three months ended March 31, 2025, was $237,620 thousand, compared to$118,830 thousand in 2024, reflecting a significant increase[36]. Future Projections - The company expects full-year 2025 revenue to be between $2.8 billion and$2.95 billion, indicating continued growth despite economic uncertainties[8]. - The company anticipates adjusted EBITDA for 2025 to be in the range of $450 million to$456 million[14]. - Diluted earnings per share for 2025 are expected to be between $1.97 and$2.02, with adjusted diluted earnings per share projected between $3.60 and$3.65[14]. - Full Year 2025 GAAP Net Income is projected to be between $127.9 million and$131.1 million, with diluted EPS ranging from $1.97 to$2.02[39]. - Adjusted Net Income for 2025 is expected to be between $234.5 million and$237.7 million, with adjusted diluted EPS between $3.60 and$3.65[39]. - Adjusted EBITDA guidance for 2025 is projected to be between $450.4 million and$456.2 million[39]. Integration and Costs - The integration of Marcum is on schedule, contributing to strong employee and client retention rates[5][9]. - The company incurred integration costs related to acquisitions amounting to $15,692 thousand for the three months ended March 31, 2025[36]. - Integration costs related to acquisitions are expected to total$75.0 million for 2025[39]. - The company is focusing on integration costs related to the Marcum acquisition, which includes consulting, technology, and personnel expenses[40]. - Accelerated depreciation associated with technology assets from the acquisition of Marcum is included in the reported expenses[38]. - Incremental non-recurring lease expenses are incurred due to real estate optimization efforts[38]. Financial Position - Cash and cash equivalents at the end of the period were $149,306 thousand, compared to$135,914 thousand at the end of March 2024[30]. - The company reported a debt to equity ratio of 79.8% as of March 31, 2025, up from 78.6% at the end of 2024[32]. - Days sales outstanding (DSO) increased to 96 days as of March 31, 2025, compared to 73 days in the previous year[32]. - Total assets increased to $4,585,498 thousand as of March 31, 2025, compared to$4,470,883 thousand at the end of 2024[32]. Tax and Expenses - The effective tax rate is projected to be approximately 29% for 2025[14]. - Depreciation expense for 2025 is estimated at $22.1 million[39]. - Amortization of acquired intangible assets is projected to be$75.1 million for 2025[39]. - Interest expense for 2025 is anticipated to be $99.3 million[39].