May 5 2010
CBIZ, Inc. (NYSE: CBZ) today announced results for the first quarter ended March 31, 2010.
CBIZ reported revenue of $210.2 million for the first quarter ended March 31, 2010, compared with $216.5 million reported for the first quarter of 2009. Revenue from newly acquired operations contributed $6.0 million or 2.8% to revenue growth in the first quarter compared with the same period a year ago. Same-unit revenue declined by 5.6%, or $12.2 million in the first quarter. CBIZ reported income from continuing operations for the quarter of $16.9 million, or $0.27 per diluted share, compared with $18.4 million, or $0.30 per diluted share in the first quarter of 2009.
The first quarter results include a pre-tax restructuring charge of $1.4 million related to integration activities for the previously announced acquisition of Goldstein Lewin & Company which is located in Boca Raton, Florida. This charge impacted earnings per diluted share from continuing operations by approximately $0.02 for the first quarter 2010. Also during the first quarter compared with the prior year, the Company recorded an increase in legal expenses of approximately $1.0 million that were related to bringing several long standing matters to a successful conclusion.
Cash earnings per share from continuing operations, a non-GAAP measure that includes the impact of major non-cash charges to earnings, was $0.41 per diluted share for the first quarter 2010, compared to $0.41 per diluted share from continuing operations for the first quarter 2009. EBITDA for the quarter was $36.3 million. The calculations of these items are outlined in the schedule attached.
At March 31, 2010 the amount outstanding on the Company’s $214 million unsecured credit facility was $139.5 million compared with $110.0 million at December 31, 2009. The Company invested approximately $26.0 million of funds for acquisitions and acquisition-related earn-out payments in the first quarter. During the first quarter, the Company made no share repurchases.
“As we indicated earlier this year, we expect the economic environment in 2010 will present challenges for revenue growth for CBIZ as unemployment continues at high levels and the small and mid-sized business clients we typically serve are not yet experiencing a strong recovery. There are recent signs of improvement, however, and in the first quarter, our Financial Services and Employee Services groups have generally performed in line with our expectations and have increased pre-tax earnings contributions on slightly lower revenue. Our Medical Management Professionals (MMP) business has been impacted by an industry-wide reduction in the volume of procedures that has occurred within the medical specialties that we serve,” stated Steven L. Gerard, Chairman and CEO.
"We are taking appropriate actions within our MMP business, but it is unclear if this industry-wide trend is short–term in nature or will persist throughout the balance of the year. If the volume of procedures returns to normal levels, we remain comfortable with our full year goal to increase earnings per share within a range of 4% to 7%; however, if the reduction in volumes persists, this will negatively impact our ability to achieve our earnings goals for 2010. Our balance sheet continues to be strong. We completed two acquisitions in the first quarter and are continuing to assess a number of potential acquisition opportunities for the balance of 2010,” concluded Mr. Gerard.