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CBIZ REPORTS SECOND-QUARTER AND FIRST-HALF 2024 RESULTS AND ANNOUNCES AGREEMENT TO ACQUIRE MARCUM

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SECOND-QUARTER HIGHLIGHTS:

TOTAL REVENUE UP 5.4%; SAME-UNIT REVENUE UP 2.8%GAAP EPS DOWN 26.4%; ADJUSTED EPS DOWN 9.1%; INCLUDES MARCUM ACQUISITION-RELATED EXPENSE OF $6.7MNET INCOME DOWN 26.3%; ADJUSTED EBITDA DOWN 6.9%

SIX-MONTH HIGHLIGHTS:

TOTAL REVENUE UP 7.2%; SAME-UNIT REVENUE UP 4.4%GAAP EPS DOWN 3.0%; ADJUSTED EPS UP 1.5%; INCLUDES MARCUM ACQUISITION-RELATED EXPENSE OF $6.7MNET INCOME DOWN 3.3%; ADJUSTED EBITDA UP 1.0%

CLEVELAND, July 31, 2024 /PRNewswire/ — CBIZ, Inc., (NYSE: CBZ) (“CBIZ” or the “Company”), a leading provider of financial, insurance and advisory services, today announced results for the second quarter and six months ended June 30, 2024.

In a separate press release issued today, CBIZ also announced it has entered into a definitive agreement to acquire Marcum LLP (“Marcum”), a national accounting and advisory firm. Upon closing, CBIZ will become the seventh-largest accounting services provider in the U.S. The cash-and-stock transaction valued at approximately $2.3 billion is expected to close in the fourth quarter. CBIZ incurred approximately $6.7 million in fees related to the Marcum transaction and results for the second quarter are impacted by $0.10 per share. The press release announcing this transaction is available on CBIZ’s website at https://cbiz.gcs-web.com/investor-overview.

Second-Quarter and First-Half 2024 Results
During the 2024 second quarter, CBIZ experienced the departure of a small group of producers and support staff within our Property and Casualty business and a loss of clients served by this group. Included in reported results is the impact of $0.03 in Adjusted earnings per share for the 2024 second quarter and first half. The impact to full-year 2024 Adjusted earnings per share is expected to be approximately $0.06.

For the 2024 second quarter, CBIZ recorded revenue of $420.0 million, an increase of $21.5 million, or 5.4%, compared with $398.5 million reported for the same period in 2023. Acquired operations contributed $10.5 million, or 2.6%, to second-quarter 2024 revenue growth. Same-unit revenue increased by $11.0 million, or 2.8%, for the quarter, compared with the same period a year ago. Net income was $19.8 million, or $0.39 per diluted share, for the quarter, compared with $26.9 million, or $0.53 per diluted share, for the same period a year ago.

For the six months ended June 30, 2024, CBIZ recorded revenue of $914.3 million, an increase of $61.2 million, or 7.2%, over the $853.1 million recorded for the same period in 2023. Acquired operations contributed $23.3 million, or 2.7%, to revenue growth in the six months ended June 30, 2024. Same-unit revenue increased by $37.9 million, or 4.4%, for the six months ended June 30, 2024, compared with the same period a year ago. Net income was $96.7 million, or $1.92 per diluted share, for the six months ended June 30, 2024, compared with $100.0 million, or $1.98 per diluted share, for the same period a year ago.

Excluding nonrecurring acquisition-related integration expenses and professional fees incurred related to the Marcum transaction, Adjusted net income was $25.0 million in the second quarter of 2024, compared with Adjusted net income of $27.6 million for the same period a year ago. Adjusted earnings per share was $0.50 for the second quarter of 2024, a decrease of 9.1%, compared with Adjusted earnings per share of $0.55 for the same period a year ago. Adjusted EBITDA for the second quarter of 2024 was $50.7 million, down 6.9%, compared with $54.4 million for the same period in 2023.

For the six months ended June 30, 2024, Adjusted net income was $102.5 million, compared with Adjusted net income of $102.0 million for the same period a year ago. Adjusted earnings per share was $2.04 for the six months ended June 30, 2024, an increase of 1.5%, compared with Adjusted earnings per share of $2.01 for the same period a year ago. Adjusted EBITDA for the six months ended June 30, 2024, was $169.5 million, compared with $167.8 million for the same period in 2023.

Schedules reconciling Adjusted net income, Adjusted earnings per share and Adjusted EBITDA to the most directly comparable GAAP measures can be found in the tables included at the end of this release.

The balance outstanding on the Company’s unsecured credit facility on June 30, 2024, was $381.0 million, with $209.8 million of unused borrowing capacity.

CEO Commentary
Jerry Grisko, CBIZ President and Chief Executive Officer, said, “We are pleased to report that our second-quarter results were generally in line with our expectations and that the overall health of our business remains strong. At the same time, we did experience a small number of unique headwinds that impacted our results for the quarter. Among these headwinds were the exit of a small group of producers from our Property and Casualty Insurance business and some evidence of clients delaying investment decisions and tightening discretionary spending. While our clients remain largely optimistic about the second half of the year, we find that any uncertainty in the market is amplified in an election year given concerns around regulations and interest rates. The nature of our resilient business model, with a high rate of recurring revenue and variable expense, enables us to maintain our performance even in less predictable business conditions.”

Grisko continued, “This morning we announced our agreement to acquire Marcum. After closing, the new, combined business will solidify our position as a leading provider of professional services to middle market businesses and is projected to be accretive to Adjusted Earnings in its first full year of operations. On a combined basis, we will become the seventh-largest accounting services provider in the country with revenues of approximately $2.8 billion, will employ over 10,000 team members and will serve more than 135,000 clients with a unique breadth of services and depth of expertise, including Benefits & Insurance services. We are excited about our future together and the opportunities this will provide to our people, the solutions we will bring to our clients, and the value we expect to create for our shareholders.”

2024 Outlook
With an expected close in fourth quarter of 2024, our current guidance excludes the impact of the Marcum acquisition. Based on expectations for the remainder of 2024, and due to the projected $0.06 per share full year impact of the loss of Property and Casualty business, the Company expects the following:

Total revenue to grow within a range of 7% to 9% over the prior year.Effective tax rate of approximately 28%.Weighted average fully diluted share count of approximately 50.0 to 50.5 million shares.GAAP fully diluted earnings per share to grow within a range of 6% to 8%, to $2.53 to $2.58 per share, compared with the $2.39 per share reported for 2023.Adjusted fully diluted earnings per share to grow within a range of 10% to 12%, to $2.64 to $2.69 per share, compared with the $2.41 per share reported for 2023.

Conference Call
CBIZ will host a conference call at 11 a.m. (ET) today to discuss its second-quarter and first-half financial results as well as the Marcum acquisition announcement. The call will be webcast and an archived replay will be available at https://cbiz.gcs-web.com/investor-overview. Participants can register at https://dpregister.com/sreg/10191052/fd1f3d903c.

About CBIZ
CBIZ is a leading provider of financial, insurance and advisory services to businesses throughout the United States. Financial services include accounting, tax, government health care consulting, transaction advisory, risk advisory, and valuation services. Insurance services include employee benefits consulting, retirement plan consulting, property and casualty insurance, payroll, and human capital consulting. With more than 120 offices in 33 states, CBIZ is one of the largest accounting and insurance brokerage providers in the U.S. For more information, visit www.cbiz.com

Forward-Looking Statements
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: we may be more sensitive to revenue fluctuations than other companies, which could result in fluctuations in the market price of our common stock; payments on accounts receivable may be slower than expected, or amounts due on receivables or notes may not be fully collectible; we are dependent on the services of our executive officers, other key employees, producers and service personnel, the loss of whom may have a material adverse effect on our business, financial condition and results of operations; restrictions imposed by independence requirements and conflict of interest rules may limit our ability to provide services to clients of the attest firms with which we have contractual relationships and the ability of such attest firms to provide attestation services to our clients; our goodwill and intangible assets could become impaired, which could lead to material non-cash charges against earnings; certain liabilities resulting from acquisitions are estimated and could lead to a material non-cash impact on earnings; governmental regulations and interpretations are subject to changes, which could have a material adverse effect on our clients, our business, our business services operations, our business models, or our revenue; changes in the United States healthcare or public health environment, including new healthcare legislation or regulations, may adversely affect the revenue and margins in our or our clients’ businesses; we are subject to risks relating to processing customer transactions for our payroll and other transaction processing businesses; cyber-attacks or other security breaches involving our computer systems or the systems of one or more of our vendors or clients could materially and adversely affect our business; we are subject to risk as it relates to software that we license from third parties; we could be held liable for errors and omissions, contract claims, or other litigation judgments or expenses; the future issuance of additional shares could adversely affect the price of our common stock; our principal stockholders may have substantial control over our operations; we require a significant amount of cash for interest payments on our debt and to expand our business as planned; terms of our credit facility may adversely affect our ability to run our business and/or reduce stockholder returns; our failure to satisfy covenants in our debt instruments could cause a default under those instruments; we are reliant on information processing systems and any failure of these systems could have a material adverse effect on our business, financial condition and results of operations; we may not be able to acquire and finance additional businesses which may limit our ability to pursue our business strategy; the business services industry is competitive and fragmented; if we are unable to compete effectively, our business, financial condition and results of operations may be negatively impacted; there is volatility in our stock price.

With respect to the agreement to acquire Marcum, such risks and uncertainties include, but are not limited to: the ability of the parties to consummate the transaction in a timely manner or at all; satisfaction of the conditions precedent to consummation of the transaction, including the ability to secure regulatory approvals in a timely manner or at all, and the approval by Marcum’s partners and the approval by the Company’s stockholders; the possibility of litigation related to the transaction and the effects thereof; the possibility that anticipated benefits and/or synergies of the transaction will not be achieved in a timely manner or at all; the possibility that the costs of the transaction and/or liabilities assumed will be more significant than anticipated; the possibility that integration will prove more costly and/or time consuming than anticipated; the possibility that the transaction could disrupt ongoing plans and operations of the parties or their respective relationships with clients, other business partners and employees; the possibility that the financing will not be obtained as anticipated and the effects of the increased leverage of the Company following the transaction; and other risks described in the Company’s filings with the Securities and Exchange Commission (“SEC”).

Such forward-looking statements can be affected by inaccurate assumptions we might make or by known or unknown risks and uncertainties. Should one or more of these risks materialize, or should the underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. Consequently, no forward-looking statements can be guaranteed.

A more detailed description of such risks and uncertainties may be found in “Item 1A. Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, and the Company’s other filings with the SEC at www.sec.gov

All forward-looking statements made in this release are made only as of the date hereof. The Company does not undertake any obligation to publicly update or correct any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

ADDITIONAL INFORMATION ABOUT THE TRANSACTION AND WHERE TO FIND IT
In connection with the transaction with Marcum, the Company will file a proxy statement with the SEC. The definitive proxy statement will be mailed to the Company’s stockholders and will contain important information about the transaction and related matters. THE COMPANY’S STOCKHOLDERS ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT CAREFULLY WHEN IT BECOMES AVAILABLE BEFORE MAKING ANY VOTING OR INVESTMENT DECISION WITH RESPECT TO THE TRANSACTION BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION ABOUT THE TRANSACTION. The definitive proxy statement and other relevant materials (when they become available) and any other documents filed by the Company with the SEC may be obtained free of charge at the SEC’s website at www.sec.gov. In addition, stockholders will be able to obtain free copies of the definitive proxy statement from the Company on the Investor Relations page of the Company’s website, www.cbiz.com, or by writing to us at Attention: Investor Relations Department, 5959 Rockside Woods Blvd. N., Suite 600, Independence, Ohio 44131.

PARTICIPANTS IN THE SOLICITATION
The Company and its directors and executive officers may be deemed to be participants in the solicitation of proxies in connection with the transaction with Marcum. Information with respect to the Company’s directors and executive officers is set forth in the Company’s Proxy Statement on Schedule 14A for its 2024 Annual Meeting of Stockholders, which was filed with the SEC on March 25, 2024, and its Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which was filed with the SEC on February 23, 2024. These documents are available free of charge at the SEC’s website at www.sec.gov, or from the Company on the Investor Relations page of the Company’s website, www.cbiz.com, or by writing to us at Attention: Investor Relations Department, 5959 Rockside Woods Blvd. N., Suite 600, Independence, Ohio 44131. Additional information regarding the interests of participants in the solicitation of proxies in connection with the transaction will be included in the proxy statement that the Company intends to file with the SEC.

CBIZ, INC.

FINANCIAL HIGHLIGHTS (UNAUDITED)

THREE MONTHS ENDED JUNE 30, 2024 AND 2023

(In thousands, except percentages and per share data)

 

Three Months Ended June 30,

2024

%

2023

%

Revenue

$ 420,012

100.0 %

$ 398,502

100.0 %

Operating expenses (1)

366,368

87.2

343,987

86.3

Gross margin

53,644

12.8

54,515

13.7

Corporate general and administrative expenses (1)

22,050

5.2

15,793

4.0

Operating income

31,594

7.6

38,722

9.7

Other (expense) income:

Interest expense

(5,884)

(1.4)

(5,534)

(1.4)

Other income, net (1) (2)

2,483

0.6

5,421

1.4

Total other expense, net

(3,401)

(0.8)

(113)

Income before income tax expense

28,193

6.8

38,609

9.7

Income tax expense

8,400

11,746

Net income

$  19,793

4.7 %

$  26,863

6.7 %

Diluted earnings per share

$      0.39

$      0.53

Diluted weighted average common shares outstanding

50,276

50,385

Other data:

Adjusted EBITDA (3)

$  50,683

$  54,435

Adjusted EPS (3)

$      0.50

$      0.55

(1)

CBIZ sponsors a deferred compensation plan, under which a CBIZ employee’s compensation deferral is held in a rabbi trust and invested accordingly as directed by the employee. Income and expenses related to the deferred compensation plan are included in “Operating expenses” and “Corporate general and administrative expenses,” and are directly offset by deferred compensation gains or losses in “Other expense, net.” The deferred compensation plan has no impact on “Income before income tax expense.” 

Income and expenses related to the deferred compensation plan for the three months ended June 30, 2024, and 2023, are as follows (in thousands):

 

Three Months Ended June 30,

2024

% of Revenue

2023

% of Revenue

Operating expense

$       2,283

0.5 %

$       5,102

1.3 %

Corporate general and administrative expense

323

0.1 %

631

0.2 %

Other income, net

2,606

0.6 %

5,733

1.4 %

 

Excluding the impact of the previously mentioned income and expenses related to the deferred compensation plan, the operating results for the three months ended June 30, 2024, and 2023, are as follows (in thousands):

Three Months Ended June 30,

2024

2023

As Reported

Deferred
Compensation
Plan

Adjusted

% of Revenue

As Reported

Deferred
Compensation
Plan

Adjusted

% of Revenue

Gross margin

$  53,644

$       2,283

$  55,927

13.3 %

$  54,515

$       5,102

$  59,617

15.0 %

Operating income

31,594

2,606

34,200

8.1 %

38,722

5,733

44,455

11.2 %

Other income (expense), net

2,483

(2,606)

(123)

— %

5,421

(5,733)

(312)

(0.1) %

Income before income tax expense

28,193

28,193

6.8 %

38,609

38,609

9.7 %

(2)

Included in “Other income (expense), net” for the three months ended June 30, 2024, and 2023, is expense of $0.2 million and $0.8 million, respectively, related to net changes in the fair value of contingent consideration related to CBIZ’s prior acquisitions.

(3)

Refer to the schedules reconciling Adjusted earnings per share and Adjusted EBITDA to the most directly comparable GAAP measures at the end of this release, and for additional information as to the usefulness of the Non-GAAP financial measures to shareholders and investors.

 

CBIZ, INC.

FINANCIAL HIGHLIGHTS (UNAUDITED)

SIX MONTHS ENDED JUNE 30, 2024 AND 2023

(In thousands, except percentages and per share data)

Six Months Ended June 30,

2024

%

2023

%

Revenue

$  914,309

100.0 %

$  853,108

100.0 %

Operating expenses (1)

742,853

81.2

684,998

80.3

Gross margin

171,456

18.8

168,110

19.7

Corporate general and administrative expenses (1)

40,761

4.5

31,391

3.7

Operating income

130,695

14.3

136,719

16.0

Other (expense) income:

Interest expense

(10,395)

(1.1)

(9,175)

(1.1)

Gain on sale of operations, net

99

Other income, net (1) (2)

11,907

1.3

10,533

1.2

Total other income, net

1,512

0.2

1,457

0.1

Income before income tax expense

132,207

14.5

138,176

16.1

Income tax expense

35,530

38,153

Net income

96,677

10.6 %

100,023

11.7 %

Diluted earnings per share

$        1.92

$        1.98

Diluted weighted average common shares outstanding

50,248

50,639

Other data:

Adjusted EBITDA (3)

$  169,513

$  167,783

Adjusted EPS (3)

$        2.04

$2.01

(1)

CBIZ sponsors a deferred compensation plan, under which a CBIZ employee’s compensation deferral is held in a rabbi trust and invested accordingly as directed by the employee. Income and expenses related to the deferred compensation plan are included in “Operating expenses” and “Corporate general and administrative expenses,” and are directly offset by deferred compensation gains or losses in “Other income (expense), net.” The deferred compensation plan has no impact on “Income before income tax expense.” 

Income and expenses related to the deferred compensation plan for the six months ended June 30, 2024, and 2023, are as follows (in thousands):

 

Six Months Ended June 30,

2024

% of Revenue

2023

% of Revenue

Operating  expenses

$     10,859

1.2 %

$       9,862

1.2 %

Corporate general and administrative expenses

1,380

0.2 %

1,273

0.1 %

Other income (expense), net

12,239

1.3 %

11,135

1.3 %

Excluding the impact of the above-mentioned income and expenses related to the deferred compensation plan, the operating results for the six months ended June 30, 2024, and 2023, are as follows (in thousands):

 

Six Months Ended June 30,

2024

2023

As Reported

Deferred
Compensation
Plan

Adjusted

% of Revenue

As Reported

Deferred
Compensation
Plan

Adjusted

% of Revenue

Gross margin

$ 171,456

$     10,859

$ 182,315

19.9 %

$ 168,110

$       9,862

$ 177,972

20.9 %

Operating income

130,695

12,239

142,934

15.6 %

136,719

11,135

147,854

17.3 %

Other income (expense), net

11,907

(12,239)

(332)

— %

10,533

(11,135)

(602)

(0.1) %

Income before income tax expense

132,207

132,207

14.5 %

138,176

138,176

16.1 %

(2)

Included in “Other income (expense), net” for the six months ended June 30, 2024, and 2023, is expense of $0.6 million and $1.4 million, respectively, related to net changes in the fair value of contingent consideration related to CBIZ’s prior acquisitions.

(3)

Refer to the financial highlights tables for a reconciliation of Non-GAAP financial measures to the most directly comparable GAAP financial measure, and for additional information as to the usefulness of the Non-GAAP financial measures to shareholders and investors.

 

CBIZ, INC.

FINANCIAL HIGHLIGHTS (UNAUDITED)

(In thousands)

SELECT SEGMENT DATA

Three Months Ended June 30,

Six Months Ended June 30,

2024

2023

2024

2023

Revenue

Financial Services

$      309,233

$      290,930

$      681,863

$      634,016

Benefits and Insurance Services

97,419

95,838

205,827

195,892

National Practices

13,360

11,734

26,619

23,200

Total

$      420,012

$      398,502

$      914,309

$      853,108

Gross Margin

Financial Services

$        46,424

$        47,485

$      153,493

$      146,128

Benefits and Insurance Services

14,176

17,464

38,947

40,595

National Practices

1,332

1,189

2,658

2,072

Operating expenses – unallocated (1):

Other expense

(6,005)

(6,521)

(12,783)

(10,823)

Deferred compensation

(2,283)

(5,102)

(10,859)

(9,862)

Total

$        53,644

$        54,515

$      171,456

$      168,110

(1)

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 includes gains or losses attributable to the assets held in a rabbi trust associated with the Company’s deferred compensation plan. These gains or losses do not impact “Income 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. Net gains or losses recognized from adjustments to the fair value of the assets held in the rabbi trust are recorded as compensation expense (income) in “Operating expenses” and “Corporate, general and administrative expenses,” and offset in “Other income (expense), net.”

 

CBIZ, INC.

SELECT CASH FLOW DATA (UNAUDITED)

(In thousands)

Six Months Ended June 30,

2024

2023

Net income

$         96,677

$       100,023

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization expense

19,008

17,831

Gain on sale of operations, net

(99)

Bad debt expense, net of recoveries

1,244

805

Adjustments to contingent earnout liability, net

638

1,445

Stock-based compensation expense

5,016

6,619

Other noncash adjustments

3,401

4,671

Net income, after adjustments to reconcile net income to net cash provided by operating activities

125,984

131,295

Changes in assets and liabilities, net of acquisitions and divestitures

(101,545)

(101,566)

Net cash provided by operating activities

24,439

29,729

Net cash used in investing activities

(33,247)

(65,617)

Net cash (used in) provided by financing activities

(11,920)

21,793

Net decrease in cash, cash equivalents and restricted cash

(20,728)

(14,095)

Cash, cash equivalents and restricted cash at beginning of year

$       157,148

$       160,145

Cash, cash equivalents and restricted cash at end of period

$       136,420

$       146,050

Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheet:

Cash and cash equivalents

$           1,128

$           3,692

Restricted cash

44,947

52,314

Cash equivalents included in funds held for clients

90,345

90,044

Total cash, cash equivalents and restricted cash

$       136,420

$       146,050

 

CBIZ, INC.

SELECT FINANCIAL DATA AND RATIOS (UNAUDITED)

(In thousands)

June 30, 2024

December 31, 2023

Cash and cash equivalents

1,128

8,090

Restricted cash

44,947

30,362

Accounts receivable, net

477,841

380,152

Current assets before funds held for clients

562,808

453,499

Funds held for clients

131,128

159,186

Goodwill and other intangible assets, net

1,035,148

1,008,604

Total assets

2,160,805

2,043,592

Current liabilities before client fund obligations

336,140

352,028

Client fund obligations

131,623

159,893

Total long-term debt, net

379,660

310,826

Total liabilities

1,269,371

1,251,974

Treasury stock

(910,322)

(899,093)

Total stockholders’ equity

891,434

791,618

Debt to equity

42.6 %

39.3 %

Days sales outstanding (DSO) (1)

95

78

Shares outstanding

50,162

49,814

Basic weighted average common shares outstanding

50,079

49,989

Diluted weighted average common shares outstanding

50,248

50,557

(1)

DSO is provided for continuing operations and represents accounts receivable, net, at the end of the period, divided by trailing twelve months 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 GAAP. DSO on June 30, 2023, was 94.

 

CBIZ, INC.

GAAP RECONCILIATION

Net Income and Diluted Earnings Per Share (“EPS”) to Adjusted Net Income, EPS and EBITDA(1)

(Unaudited. Amounts in thousands, except per share data)

Three Months Ended June 30,

2024

2023

Amounts

EPS

Amounts

EPS

Net income

$      19,793

$          0.39

$      26,863

$          0.53

Adjustments:

Integration & retention costs related to acquisitions (2)

330

0.01

865

0.03

Facility optimization costs (3)

85

221

Transaction costs (4)

6,651

0.13

Income tax effect related to adjustments

(1,906)

(0.03)

(330)

(0.01)

Adjusted net income

$      24,953

$          0.50

$      27,619

$          0.55

Interest expense

$        5,884

$        5,534

Income tax expense

8,400

11,746

Tax effect related to the adjustments above

1,906

330

Depreciation

3,520

3,116

Amortization

6,020

6,090

Adjusted EBITDA

$      50,683

$      54,435

Six Months Ended June 30,

2024

2023

Amounts

EPS

Amounts

EPS

Net income

$      96,677

$          1.92

$    100,023

$          1.98

Adjustments:

Transaction costs related to acquisitions (2)

611

0.01

Integration & retention costs related to acquisitions (2)

912

0.02

1,868

0.04

Facility optimization costs (3)

340

0.01

221

Transaction costs (4)

6,651

0.13

Income tax effect related to adjustments

(2,124)

(0.04)

(746)

(0.02)

Adjusted net income

$    102,456

$          2.04

$    101,977

$          2.01

Interest expense

$      10,395

$        9,175

Income tax expense

35,530

38,153

Gain on sale of operations, net

(99)

Tax effect related to the adjustments above

2,124

746

Depreciation

7,043

6,091

Amortization

11,965

11,740

Adjusted EBITDA

$    169,513

$    167,783

(1)

CBIZ reports its financial results in accordance with GAAP. This table reconciles Adjusted net income, Adjusted EPS, and Adjusted EBITDA to the most directly comparable GAAP financial measures, “Net income” and “Diluted earnings per share.” Adjusted net income, Adjusted EPS and Adjusted EBITDA are not defined by GAAP and should not be regarded as an alternative or replacement to any financial information determined under GAAP. Adjusted net income, Adjusted EPS and Adjusted EBITDA exclude significant non-operating related gains and losses that management does not consider on-going in nature. These Non-GAAP financial measures are used by the Company as performance measures to evaluate, assess and benchmark the Company’s operational results and to evaluate results relative to employee compensation targets. Accordingly, the Company believes the presentation of these Non-GAAP financial measures allows its stockholders, debt holders, and other interested parties to meaningfully compare the Company’s period-to-period operating results.

(2)

These costs include, but are not limited to, certain consulting, technology, personnel, as well as other first year operating and general administrative costs that are non-recurring in nature. Amounts reported in 2024 related to the costs incurred related to the acquisitions of Erickson, Brown & Kloster, LLC and CompuData, Inc., and those reported in 2023 related to the acquisition of Somerset CAPs and Advisors.

(3)

These costs relate to incremental non-recurring lease expense incurred as a result of CBIZ’s real estate optimization efforts.

(4)

These costs include, but are not limited to, certain non-recurring legal and other professional service costs incurred in connection with the announced purchase of Marcum.

 

CBIZ, INC.

GAAP RECONCILIATION

Full Year 2024 Diluted Earnings Per Share (“EPS”) Guidance to Full Year 2024 Adjusted Diluted EPS (1)

Full Year 2024 Guidance

Low

High

Diluted EPS – GAAP Guidance

$                2.53

$                  2.58

Adjustments:

Integration & retention costs related to acquisitions (2)

0.01

0.01

Transaction costs (3)

0.10

0.10

Adjusted Diluted EPS Guidance

$                2.64

$                  2.69

GAAP Diluted EPS for 2023

$                2.39

$                  2.39

Adjusted Diluted EPS for 2023

$                2.41

$                  2.41

GAAP Diluted EPS Range

6 %

8 %

Adjusted Diluted EPS Range

10 %

12 %

(1) 

The full year 2024 guidance is based on management’s current expectations for the remainder of 2024, excluding the impact of the announced acquisition of Marcum. Management expects to update guidance for the combined business upon closing of the transaction, which is expected to occur in the fourth quarter, subject to the satisfaction of various closing conditions, including the approval of the Company’s stockholders.

(2)

These costs include, but are not limited to, certain non-recurring consulting, technology, personnel, and other first year operating and general administrative costs incurred related to the acquisitions of Erickson, Brown & Kloster, LLC and CompuData, Inc.

(3)

These costs include, but are not limited to, certain non-recurring legal and other professional service costs incurred in connection with the announced purchase of Marcum.

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/cbiz-reports-second-quarter-and-first-half-2024-results-and-announces-agreement-to-acquire-marcum-302210559.html

SOURCE CBIZ, Inc.

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Technology

Macrogen Consortium win tender for National Bio Big Data Project

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Illumina is proud to be selected as sequencing technology partner to the Macrogen Consortium.

SEOUL, South Korea, Dec. 23, 2024 /PRNewswire/ — Macrogen a global healthcare company that specializes in precision medicine and Illumina Inc. (NASDAQ: ILMN), a global leader in DNA sequencing and array-based technologies, announced today that they are honoured to support the National Bio Big Data project by sequencing and analysing 145,952 Korean genomes.

The National Bio Big Data Project project has been running in Korea as a pilot project since 2020. During this period about 20,000 genomes were analysed, 10,000 of these including people with a rare disease. The ultimate goal is to enable precision medicine by building a reference genome for about 770,000 Koreans by 2028 and a total of 1 million by 2032.  

“Being a part of this step change to improving public health in Korea through the voluntary collection and analysis of genomic, clinical and life record information from the general public, is paramount to ensure precision medicine becomes a standard of care for all Koreans,” said Changhoon Kim, CEO Macrogen.

“Illumina is pleased to be a part of the Korean bio industry ecosystem and to participate in such an important national project. We look forward to contributing to Korea by bringing our expertise and lessons learned from our direct involvement in leading pop gen projects around the world,” said Robert McBride, General Manager of Illumina Korea.

People across the globe have very similar genes but a small number of variants between populations can impact health. For example, some variants are associated closely with particular diseases such as cystic fibrous.[1]These variants can present differently in populations and have a significant impact on how individuals respond to medicines and treatments. Therefore, it is beneficial for Koreans to have information available that is unique to them.

Worldwide, the number of pop gen projects is expanding rapidly, including the UK, Japan, Singapore, Qatar, the United Arab Emirates, and Nigeria.

“Population genome projects are growing worldwide with many programs reaching significant milestones. But despite this inequity remains with the majority of genome datasets being of European descent. This means we have a lot of information how to develop drugs for European populations but this doesn’t translate in any meaningful way to other nationalities, said Robert McBride.

Population genomics provides a platform for industry engagement and investment, specifically in the pharmaceutical, biotechnology, and data sectors. By integrating large, diverse data sets and using advanced computing technology (such as artificial intelligence or machine learning), health systems and partners are optimally positioned to unlock the power of the genome even further, while improving quality of life and care and fostering economic growth.

“Precision medicine is changing how diseases are treated and this benefits everyone. For patients, treatments often work better when decisions are based around an individual’s genome, for drug companies it can reduce cost of development and for governments there are long term savings related to less waste and healthier patients,” said Changhoon Kim.

References

[1] https://www.genome.gov/about-genomics/educational-resources/fact-sheets/human-genomic-variation#:~:text=How%20do%20peoples’%20genomes%20vary,person%20responds%20to%20certain%20medications.

About Macrogen

Macrogen is a global genetic service provider, partnered with over 18,000 scientists in 150+ countries, and with more than 20 years of experience in the industry.

Established in 1997, from the Genome Medical Research Institute of Seoul National University, Macrogen has become a major service provider and consulting agent for government agencies, universities and research institutes around the world.

About Illumina

Illumina is improving human health by unlocking the power of the genome. Our focus on innovation has established us as a global leader in DNA sequencing and array-based technologies, serving customers in the research, clinical, and applied markets. Our products are used for applications in the life sciences, oncology, reproductive health, agriculture, and other emerging segments. To learn more, visit www.illumina.com and connect with us on X (Twitter), Facebook, LinkedIn, Instagram, TikTok, and YouTube

About the Consortium

Macrogen Consortium members include the following companies: DNA Link, Theragen Bio, and CG Invites

View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/macrogen-consortium-win-tender-for-national-bio-big-data-project-302335981.html

SOURCE Illumina

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Technology

As 2025 IRS Mileage Rate Hits 70 Cents, Expert Warns: Ditch Risky Apps for Secure Paper Tracking

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Gig economy expert Ed Ryder warns against the risks of mileage tracking apps, and advocates using paper-based tracking methods instead. He introduces The Big Mileage Form, a secure alternative developed over two years to meet the specific needs of food delivery gig workers. Ryder highlights recent tech failures, like the July 2024 global IT outage, to underscore the vulnerabilities of digital solutions. The press release also mentions Ryder’s significant mileage deduction using his form and directs readers to GigCoach.net for additional resources, including a consumer tutorial to drive better food delivery outcomes and a gig coach training program.

PHILADELPHIA, Dec. 22, 2024 /PRNewswire-PRWeb/ — As the IRS announces a standard mileage rate of 70 cents per mile for 2025, gig economy expert Ed Ryder, who has completed over 10,000 deliveries with his own car using major food delivery platforms, urges fellow gig workers to reconsider their mileage tracking methods. While acknowledging the convenience of digital solutions, Ryder advocates for a return to secure, paper-based tracking to protect valuable mileage deductions.

With the mileage rate at 70 cents, accurate tracking is crucial for gig workers and small business owners. Mileage apps seem convenient, but they risk data loss from outages, glitches, and cyber attacks. Many overlook these significant dangers.

“With the mileage rate increasing to 70 cents, accurate tracking is more crucial than ever for gig workers and small business owners,” says Ryder, creator of The Big Mileage Form. “While mileage tracking apps seem convenient, they come with significant risks that many overlook. Network outages, app glitches, and cyber attacks can jeopardize months of data.”

Ryder points to the July 2024 global IT outage as a prime example of technology’s vulnerabilities. “A faulty software update caused mass airline disruptions and impacted other industries, catching major corporations off guard. This incident highlights that even in our digital age, software isn’t infallible. For me, I simply won’t trust mileage tracking apps with my most important tax deduction.”

To address these concerns, Ryder developed a comprehensive, paper-based solution. “I spent two years perfecting The Big Mileage Form, tailoring it to the specific needs of food delivery gig workers,” he explains. “At 11×17 inches, it provides ample space for detailed record-keeping and, crucially, it’s immune to software glitches, data breaches, and ransomware attacks.”

Ryder’s meticulous paper-based record-keeping resulted in a mileage deduction exceeding $19,000 on his 2023 federal taxes. “All my business-related miles are thoroughly documented on paper. I’m fully prepared to defend this deduction in case of an audit. This level of confidence is what I aim to provide other gig workers.”

“In today’s digital age, sometimes the most secure solution is the simplest one,” Ryder concludes. “My form not only ensures data security but also prepares users for potential IRS audits. It’s time to reconsider the old-fashioned, but reliable pen-and-paper method.”

For those interested in learning more about effective mileage tracking and other aspects of gig work, Ryder offers valuable resources on GigCoach.net. These include a tutorial for consumers titled ‘Fair Deal Delivery,’ which provides insights on how to improve food delivery outcomes. Additionally, experienced food delivery couriers can explore Ryder’s gig coach training program. Visit GigCoach.net to access these resources and learn more about The Big Mileage Form.

Media Contact

Ed Ryder, Match Experiment LLC, 1 484-493-8740, hello@ideamaned.com, gigcoach.net

View original content to download multimedia:https://www.prweb.com/releases/as-2025-irs-mileage-rate-hits-70-cents-expert-warns-ditch-risky-apps-for-secure-paper-tracking-302337779.html

SOURCE Gig economy expert Ed Ryder

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Technology

DATA BREACH ALERT: Edelson Lechtzin LLP Is Investigating Claims On Behalf Of Ascension Health Customers Whose Data May Have Been Compromised

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NEWTOWN, Pa., Dec. 22, 2024 /PRNewswire/ — The law firm of Edelson Lechtzin LLP is investigating claims regarding data privacy violations by Ascension Health (“Ascension”). Ascension learned of suspicious activity on or about May 8, 2024. To join this case, go HERE.

About Ascension Health

Ascension is a prominent non-profit health system in the nation and operates under Catholic principles.

What happened?

On or about May 8, 2024, Ascension detected unauthorized activity in its computer systems. Ascension initiated an investigation, which included retaining consulting cybersecurity experts and notifying the FBI. The investigation determined that between May 7 and 8, 2024, a cybercriminal accessed files containing personal information about Ascension’s patients and employees. This information included names, medical records, payment details, insurance information, government identification numbers, and other personal data such as dates of birth and addresses. Approximately 6 million individuals have been affected by this data breach.

How can I protect my personal data?

If you receive a data breach notification, you must guard against possible misuse of your personal information, including identity theft and fraud, by regularly reviewing your account statements and monitoring your credit reports for suspicious or unauthorized activity. Additionally, you should consider legal options for mitigating such risks.

Edelson Lechtzin LLP is investigating a class action lawsuit to seek legal remedies for customers whose sensitive personal and patient data may have been compromised by the Ascension data breach.

For more information, please contact:

Marc H. Edelson, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Phone: 844-696-7492
Email: medelson@edelson-law.com
Web:  www.edelson-law.com 

About Edelson Lechtzin LLP
Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving data breaches, our lawyers focus on class and collective litigation in cases alleging securities and investment fraud, violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and catastrophic injuries.

This press release may be considered Attorney Advertising in some jurisdictions. No class has been certified in this case, so counsel does not represent you unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing now. Your ability to share in any potential future recovery does not depend on serving as lead plaintiff.

View original content to download multimedia:https://www.prnewswire.com/news-releases/data-breach-alert-edelson-lechtzin-llp-is-investigating-claims-on-behalf-of-ascension-health-customers-whose-data-may-have-been-compromised-302337976.html

SOURCE Edelson Lechtzin LLP

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