CBIZ Reports First-Quarter 2017 Results

CLEVELAND, April 27, 2017

FIRST-QUARTER HIGHLIGHTS:

• REVENUE +7.7%
• SAME-UNIT REVENUE +2.1%
• INCOME FROM CONTINUING OPERATIONS +14.8%
• EPS FROM CONTINUING OPERATIONS +9.8%

CBIZ, Inc. (NYSE: CBZ) today announced financial results for the first quarter ended March 31, 2017. 

For the 2017 first quarter, CBIZ reported revenue of $241.5 million, an increase of $17.2 million, or 7.7%, over the $224.2 million reported in the first quarter of 2016.  Same-unit revenue increased by $4.7 million, or 2.1%, for the quarter, compared with the same period a year ago.  Newly acquired operations contributed $12.5 million to revenue in the 2017 first quarter. CBIZ reported income from continuing operations of $25.0 million, or $0.45 per diluted share, in the 2017 first quarter, compared with $21.8 million, or $0.41 per diluted share, for the same period a year ago. Adjusted EBITDA for the first quarter was $48.3 million, compared with $43.3 million for the first quarter of 2016.

Jerry Grisko, CBIZ President and Chief Executive Officer, said, "We are pleased with our performance in the first quarter.  Total revenue grew by 7.7% and our operating leverage resulted in a 14.8% increase in income from continuing operations. The six acquisitions we made in 2016 are performing very well, we are continuing to experience strong organic revenue growth within our core accounting and government healthcare consulting services, and we are seeing improved results in our benefits and insurance segment." 

Grisko continued, "Our strong balance sheet, coupled with steady cash flow and over $120 million of available funds on our unsecured credit facility, affords us the flexibility to continue with our program of acquiring outstanding companies to join CBIZ. We completed six acquisitions in 2016, which are expected to add more than $40 million in annualized revenue, and one small acquisition to date in 2017. We continue to have a full and active pipeline of potential acquisitions under review as we seek to broaden our geographic footprint and enhance the services we provide to clients." 

2017 Outlook
Grisko added, "For the full year we continue to expect total revenue growth within a range of 6% to 8% and income from continuing operations to grow within a range of 12% to 14%.  Fully diluted weighted average share count is expected to increase to approximately 55.5 million shares in 2017, and as a result, earnings per diluted share is expected to increase within a range of 8% to 10% over the $0.76 reported for 2016."