CBIZ Reports Third Quarter And Nine Months 2012 Results
PR Newswire Association LLC |
For the nine-month period ended
Cash earnings per share from continuing operations, a non-GAAP measure that includes the impact of major non-cash charges and credits to earnings, was
At
"Including the two transactions announced in early October, we have completed seven acquisitions to date this year, and we are pleased with the contribution of these new operations. Our pipeline of acquisition opportunities continues to be strong, and we have the financial flexibility to address these future opportunities. At this point, we continue to expect to achieve our target of revenue growth of 3% - 4% for the full year of 2012 with 6% - 8% growth in diluted earnings per share compared with the
Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties include, but are not limited to, the Company's ability to adequately manage its growth; the Company's dependence on the current trend of outsourcing business services; the Company's dependence on the services of its CEO and other key employees; competitive pricing pressures; general business and economic conditions; and changes in governmental regulation and tax laws affecting its insurance business or its business services operations. A more detailed description of such risks and uncertainties may be found in the Company's filings with the
For further information regarding
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FINANCIAL HIGHLIGHTS (UNAUDITED) |
||||||||||||
THREE MONTHS ENDED |
||||||||||||
(In thousands, except percentages and per share data) |
||||||||||||
THREE MONTHS ENDED |
||||||||||||
SEPTEMBER 30, |
||||||||||||
2012 |
% |
2011 (1) |
% |
|||||||||
Revenue |
$ |
183,800 |
100.0% |
$ |
177,349 |
100.0% |
||||||
Operating expenses (2) |
167,146 |
90.9% |
154,345 |
87.0% |
||||||||
Gross margin |
16,654 |
9.1% |
23,004 |
13.0% |
||||||||
Corporate general and administrative expenses (3) |
7,625 |
4.2% |
8,079 |
4.6% |
||||||||
Operating income |
9,029 |
4.9% |
14,925 |
8.4% |
||||||||
Other income (expense): |
||||||||||||
Interest expense |
(3,884) |
-2.1% |
(4,049) |
-2.3% |
||||||||
Gain on sale of operations, net |
21 |
0.0% |
87 |
0.0% |
||||||||
Other income (expense), net (4) (5) |
2,570 |
1.4% |
(4,510) |
-2.5% |
||||||||
Total other expense, net |
(1,293) |
-0.7% |
(8,472) |
-4.8% |
||||||||
Income from continuing operations before income tax expense |
7,736 |
4.2% |
6,453 |
3.6% |
||||||||
Income tax expense |
2,458 |
1,614 |
||||||||||
Income from continuing operations |
5,278 |
2.9% |
4,839 |
2.7% |
||||||||
Loss from operations of discontinued businesses, net of tax |
(3) |
(46) |
||||||||||
Gain (loss) on disposal of discontinued businesses, net of tax |
32 |
(76) |
||||||||||
Net income |
$ |
5,307 |
2.9% |
$ |
4,717 |
2.7% |
||||||
Diluted earnings (loss) per share: |
||||||||||||
Continuing operations |
$ |
0.11 |
$ |
0.10 |
||||||||
Discontinued operations |
- |
(0.01) |
||||||||||
Net income |
$ |
0.11 |
$ |
0.09 |
||||||||
Diluted weighted average common shares outstanding |
49,109 |
49,920 |
||||||||||
Other data from continuing operations: |
||||||||||||
Adjusted EBIT (6) |
$ |
11,599 |
$ |
10,415 |
||||||||
Adjusted EBITDA (6) |
$ |
16,975 |
$ |
15,522 |
||||||||
(1) |
Certain amounts in the 2011 financial data have been reclassified to conform to the current year presentation. |
|||||||||||
(2) |
Includes an expense of |
|||||||||||
(3) |
Includes an expense of |
|||||||||||
(4) |
Includes a net gain of |
|||||||||||
(5) |
For the three months ended |
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</td> | ||||||||||||
(6) |
Adjusted EBIT represents income from continuing operations before income taxes, interest expense, and gain on sale of operations, net. Adjusted EBITDA represents Adjusted EBIT before depreciation and amortization expense of |
|
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FINANCIAL HIGHLIGHTS (UNAUDITED) |
||||||||||||
NINE MONTHS ENDED |
||||||||||||
(In thousands, except percentages and per share data) |
||||||||||||
NINE MONTHS ENDED |
||||||||||||
SEPTEMBER 30, |
||||||||||||
2012 |
% |
2011 (1) |
% |
|||||||||
Revenue |
$ |
593,233 |
100.0% |
$ |
570,882 |
100.0% |
||||||
</td> | ||||||||||||
Operating expenses (2) |
513,842 |
86.6% |
484,467 |
84.9% |
||||||||
Gross margin |
79,391 |
13.4% |
86,415 |
15.1% |
||||||||
Corporate general and administrative expenses (3) |
25,807 |
4.4% |
24,383 |
4.2% |
||||||||
Operating income |
53,584 |
9.0% |
62,032 |
10.9% |
||||||||
Other income (expense): |
||||||||||||
Interest expense |
(12,152) |
-2.0% |
(13,371) |
-2.3% |
||||||||
Gain on sale of operations, net |
2,660 |
0.4% |
2,832 |
0.5% |
||||||||
Other income (expense), net (4) (5) |
5,168 |
0.9% |
(1,402) |
-0.3% |
||||||||
Total other expense, net |
(4,324) |
-0.7% |
(11,941) |
-2.1% |
||||||||
Income from continuing operations before income tax expense |
49,260 |
8.3% |
50,091 |
8.8% |
||||||||
Income tax expense |
19,386 |
20,296 |
||||||||||
Income from continuing operations |
29,874 |
5.0% |
29,795 |
5.2% |
||||||||
Loss from operations of discontinued businesses, net of tax |
(6) |
(616) |
||||||||||
Gain (loss) on disposal of discontinued businesses, net of tax |
72 |
(6) |
||||||||||
Net income |
$ |
29,940 |
5.0% |
$ |
29,173 |
5.1% |
||||||
Diluted earnings (loss) per share: |
||||||||||||
Continuing operations |
$ |
0.61 |
$ |
0.60 |
||||||||
Discontinued operations |
- |
(0.02) |
||||||||||
Net income |
$ |
0.61 |
$ |
0.58 |
||||||||
Diluted weighted average common shares outstanding |
49,278 |
49,932 |
||||||||||
</td> | ||||||||||||
Other data from continuing operations: |
||||||||||||
Adjusted EBIT (6) |
$ |
58,752 |
$ |
60,630 |
||||||||
Adjusted EBITDA (6) |
$ |
74,662 |
$ |
75,732 |
||||||||
(1) |
Certain amounts in the 2011 financial data have been reclassified to conform to the current year presentation. |
|||||||||||
(2) |
Includes an expense of |
|||||||||||
(3) |
Includes an expense of |
|||||||||||
(4) |
Includes a net gain of |
|||||||||||
(5) |
For the nine months ended |
|||||||||||
(6) |
Adjusted EBIT represents income from continuing operations before income taxes, interest expense, and gain on sale of operations, net. Adjusted EBITDA represents Adjusted EBIT before depreciation and amortization expense of |
|
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FINANCIAL HIGHLIGHTS (UNAUDITED) |
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(In thousands, except per share data) |
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SELECT SEGMENT DATA |
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THREE MONTHS ENDED |
NINE MONTHS ENDED |
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SEPTEMBER 30, |
SEPTEMBER 30, |
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2012 |
2011 (1) |
2012 |
2011 (1) |
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Revenue |
|||||||||||||||||
Financial Services |
$ 95,976 |
$ 92,823 |
$ 329,476 |
$ 311,716 |
|||||||||||||
Employee Services |
45,762 |
41,859 |
139,430 |
129,491 |
|||||||||||||
Medical Management Professionals |
33,959 |
35,352 |
101,630 |
106,417 |
|||||||||||||
National Practices |
8,103 |
7,315 |
22,697 |
23,258 |
|||||||||||||
Total |
$ 183,800 |
$ 177,349 |
$ 593,233 |
$ 570,882 |
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Gross Margin |
|||||||||||||||||
Financial Services |
$ 8,716 |
$ 9,801 |
$ 55,852 |
$ 55,703 |
|||||||||||||
Employee Services |
7,170 |
6,208 |
22,870 |
20,978 |
|||||||||||||
Medical Management Professionals |
3,944 |
4,982 |
10,341 |
12,514 |
|||||||||||||
National Practices |
1,259 |
998 |
2,472 |
3,490 |
|||||||||||||
Operating expenses - unallocated (2): |
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Other |
(2,931) |
(2,889) |
(8,805) |
(8,673) |
|||||||||||||
Deferred compensation |
(1,504) |
3,904 |
(3,339) |
2,403 |
|||||||||||||
Total |
$ 16,654 |
$ 23,004 |
$ 79,391 |
$ 86,415 |
|||||||||||||
(1) |
Certain amounts in the 2011 financial data have been reclassified to conform to the current year presentation. |
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(2) |
Represents operating expenses not directly allocated to individual businesses, including stock-based compensation, consolidation and integration charges and certain advertising expenses. "Operating expenses - unallocated" also include gains or losses attributable to the assets held in the Company's deferred compensation plan. These gains or losses do not impact "income from continuing operations before income tax expense" as they are directly offset by the same adjustment to "other income (expense), net" in the consolidated statements of comprehensive income. Gains recognized from adjustments to the fair value of the assets held in the deferred compensation plan are recorded as additional compensation expense in "operating expenses" and as income in "other income (expense), net." |
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CASH EARNINGS AND PER SHARE DATA |
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Reconciliation of Income from Continuing Operations to Cash Earnings from Continuing Operations (3) |
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THREE MONTHS ENDED SEPTEMBER 30, |
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2012 |
Per Share |
2011 |
Per Share |
||||||||||||||
Income from Continuing Operations |
$ 5,278 |
$ 0.11 |
$ 4,839 |
$ 0.10 |
|||||||||||||
Selected non-cash items: |
|||||||||||||||||
Depreciation and amortization |
5,376 |
0.11 |
5,107 |
0.10 |
|||||||||||||
Non-cash interest on convertible notes |
659 |
0.01 |
613 |
0.01 |
|||||||||||||
Stock-based compensation |
1,508 |
0.03 |
1,519 |
0.03 |
|||||||||||||
Adjustment to contingent earnouts |
(200) |
- |
- |
<span style="FONT-FAMILY: Arial; FONT-SIZE: 8pt" class="prnews_span">- |
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Non-cash items |
7,343 |
0.15 |
7,239 |
0.14 |
|||||||||||||
Cash earnings - Continuing Operations |
$ 12,621 |
$ 0.26 |
$ 12,078 |
$ 0.24 |
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NINE MONTHS ENDED SEPTEMBER 30, |
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2012 |
Per Share |
2011 |
Per Share |
||||||||||||||
Income from Continuing Operations |
$ 29,874 |
$ 0.61 |
$ 29,795 |
$ 0.60 |
|||||||||||||
Selected non-cash items: |
|||||||||||||||||
Depreciation and amortization (4) |
15,910 |
0.32 |
15,102 |
0.30 |
|||||||||||||
Non-cash interest on convertible notes |
1,954 |
0.04 |
2,565 |
0.05 |
|||||||||||||
Stock-based compensation |
4,377 |
0.09 |
4,433 |
0.09 |
|||||||||||||
Adjustment to contingent earnouts |
(303) |
(0.01) |
(1,152) |
(0.02) |
|||||||||||||
Non-cash items |
21,938 |
0.44 |
20,948 |
0.42 |
|||||||||||||
Cash earnings - Continuing Operations |
$ 51,812 |
$ 1.05 |
$ 50,743 |
$ 1.02 |
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(3) |
The Company believes cash earnings and cash earnings per diluted share (non-GAAP measures) more clearly illustrate the impact of certain non-cash charges and credits to "income from continuing operations" and are a useful measure for the Company and its analysts. Cash earnings is defined as income from continuing operations excluding: depreciation and amortization, non-cash interest expense, non-cash stock-based compensation expense, and adjustments to the fair value of contingent consideration related to prior acquisitions. Cash earnings per diluted share is calculated by dividing cash earnings by the number of weighted average diluted common shares outstanding for the period indicated. Cash earnings and cash earnings per diluted share should not be regarded as a replacement or alternative to any measurement of performance under generally accepted accounting principles. |
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(4) |
Capital spending was |
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FINANCIAL HIGHLIGHTS (UNAUDITED) |
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(In thousands, except percentages and ratios) |
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SELECT BALANCE SHEET DATA AND RATIOS |
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SEPTEMBER 30, |
DECEMBER 31, |
||||||||||
2012 |
2011 (1) |
||||||||||
Cash and cash equivalents |
$ 454 |
$ 1,613 |
|||||||||
Restricted cash |
$ 20,653 |
$ 19,838 |
|||||||||
Accounts receivable, net |
$ 166,633 |
$ 137,073 |
|||||||||
Current assets before funds held for clients |
$ 207,000 |
$ 182,475 |
|||||||||
Funds held for clients - current and non-current |
$ 86,778 |
$ 109,854 |
|||||||||
Goodwill and other intangible assets, net |
$ 472,345 |
$ 458,340 |
|||||||||
Total assets |
$ 831,480 |
$ 812,357 |
|||||||||
Notes payable - current |
$ 848 |
$ 13,986 |
|||||||||
Current liabilities before client fund obligations |
$ 118,318 |
$ 116,382 |
|||||||||
Client fund obligations |
$ 86,333 |
$ 109,800 |
|||||||||
Convertible notes - non-current |
$ 121,732 |
$ 119,778 |
|||||||||
Bank debt |
$ 146,000 |
$ 145,000 |
|||||||||
Total liabilities |
$ 541,356 |
$ 552,199 |
|||||||||
Treasury stock |
$ (371,080) |
$ (365,364) |
|||||||||
Total stockholders' equity |
$ 290,124 |
$ 260,158 |
|||||||||
Debt to equity (2) |
92.3% |
101.8% |
|||||||||
Days sales outstanding (DSO) - continuing operations (3) |
84 |
71 |
|||||||||
Shares outstanding |
49,938 |
50,036 |
|||||||||
Basic weighted average common shares outstanding |
49,014 |
49,328 |
|||||||||
Diluted weighted average common shares outstanding |
49,278 |
49,599 |
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(1) |
Certain amounts in the 2011 financial data have been reclassified to conform to the current year presentation. |
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(2) |
Ratio is convertible notes and bank debt divided by total stockholders' equity. |
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(3) |
DSO is provided for continuing operations and represents accounts receivable (before the allowance for doubtful accounts) and unbilled revenue (net of realization adjustments) at the end of the period, divided by trailing twelve month daily revenue. The Company has included DSO data because such data is commonly used as a performance measure by analysts and investors and as a measure of the Company's ability to collect on receivables in a timely manner. DSO should not be regarded as an alternative or replacement to any measurement of performance under generally accepted accounting principles. DSO at |
SOURCE
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