CBIZ(US:CBZ)2024-10-29 13:56Financial 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]