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Last updated on April 24, 2014 at 21:24 EDT

CBIZ Reports Second-Quarter and First-Half 2013 Results

July 29, 2013

Announces Agreement To Sell Medical Management Professionals Business

CLEVELAND, July 29, 2013 /PRNewswire/ — CBIZ, Inc. (NYSE: CBZ) (“Company”) today announced second-quarter and first-half results for the periods ended June 30, 2013. The Company also announced that it has signed a definitive agreement to sell its Medical Management Professionals (“MMP”) business for $200 million to Zotec Partners, LLC (“Zotec”). Subject to customary closing conditions and regulatory approvals, the transaction is expected to close August 31, 2013, and the Company expects proceeds, net of tax and other transaction costs, to be approximately $145 million.

Note: CBIZ financial data included in this release and prepared as of June 30, 2013, reflects the results of operations of the MMP business as discontinued operations and the assets and liabilities of MMP as held for sale for all periods presented. A schedule outlining unaudited adjusted results of operations for the fiscal years ended December 31, 2012, 2011, and 2010 is attached.

For the second quarter ended June 30, 2013, CBIZ reported revenue of $172.5 million, an increase of $18.3 million, or 11.9%, compared with adjusted results of $154.2 million for the second quarter of 2012. Same-unit organic revenue increased by $5.3 million, or 3.5% for the 2013 second quarter, compared with the same period a year ago. Newly acquired operations contributed $13.0 million, or 8.4% to revenue in the 2013 second quarter. Income from continuing operations was $5.5 million, or $0.11 per diluted share, compared to $3.8 million, or $0.08 per diluted share reported in the second quarter of 2012. Adjusted EBITDA for the quarter ended June 30, 2013 was $18.5 million, compared to $13.9 million for the 2012 second quarter.

For the six-month period ended June 30, 2013, CBIZ reported revenue of $373.9 million, an increase of $32.1 million, or 9.4% over the $341.8 million recorded for the comparable six-month period a year ago. Same-unit organic revenue increased by $6.0 million or by 1.8% for the first six months of 2013 compared to the same period a year ago. Acquisitions contributed $26.1 million or 7.6% to revenue growth for the first half of 2013. Net income from continuing operations was $22.4 million, or $0.45 per diluted share, for the first six months of 2013 compared with $19.4 million, or $0.39 per diluted share, for the first six months of 2012, which excludes the after-tax gain on sale of the Company’s wealth management business of $1.5 million, or $0.03 per diluted share. Adjusted EBITDA was $56.3 million for the six months ended June 30, 2013, compared to $48.8 million for the 2012 first half.

Second quarter 2013 Non-GAAP earnings, which includes certain non-cash charges and credits to income from continuing operations, were $0.25 per diluted share, compared with $0.20 per diluted share a year ago. Non-GAAP earnings for the first six months of 2013 were $0.74 per diluted share compared with $0.64 per diluted share a year ago. A schedule which reconciles Non-GAAP earnings per diluted share with GAAP earnings per diluted share is attached.

The outstanding balance on the Company’s $275.0 million unsecured bank line of credit at June 30, 2013, was $204.0 million compared with a balance of $208.9 million at December 31, 2012. During the first half of 2013, the Company used $5.2 million for acquisition-related payments and made no share repurchases.

The Company also announced that it has entered into an agreement with Westbury (Bermuda) Ltd. (“Westbury”) to purchase 3.85 million shares of the Company’s common stock, immediately after and contingent upon the close of the sale of MMP, at a price of $6.65 per share which represents the 60-day moving average share price at July 16, 2013. This purchase represents 50% of Westbury’s current holdings of approximately 7.7 million shares of the Company’s common stock. The Company maintains its previously agreed option to purchase the remainder of shares that Westbury owns in the Company, pursuant to the Stock and Option Purchase Agreement dated September 14, 2010.

Steven L. Gerard, CBIZ Chairman and CEO stated, “We are very pleased with our first half results, and the improvement in organic revenue growth in our core Financial and Employee Services continues to reflect positive trends through the second quarter. The acquisitions we made in 2012 continue to perform well, and we are happy to leverage our revenue growth into a higher rate of growth in earnings.

“Since 1998, when MMP was acquired by CBIZ, it has made a significant positive contribution to CBIZ and the entire MMP team has done a terrific job managing the business over the years. The sale of MMP will enable us to continue our focus on our core Financial and Employee Services businesses to further grow these businesses through strategic acquisitions and other investments.

“Proceeds of the sale will also enable us to address our desire to reduce current borrowing levels and we expect that total debt will be below 3.0X EBITDA after we close the sale of MMP and Westbury share purchase transactions. In addition, as we have indicated in the past, we intend to opportunistically conduct share repurchases with a goal to maintain a constant share count. The transaction with Westbury allows us to achieve this goal for 2013, and achieve a modest reduction in diluted share count for 2014 compared with 2013,” concluded Mr. Gerard.

2013 Outlook: With the sale of MMP, adjusted results of continuing operations for 2012 reflect revenue of $628.1 million and earnings per diluted share from continuing operations of $0.41, excluding the $0.05 earnings per diluted share impact of the non-recurring gain on sale of the wealth management business and favorable legal settlement recorded in 2012. Compared to these adjusted results, CBIZ expects to achieve revenue growth in 2013 within a range of 9% – 12%, and earnings per diluted share growth within a range of 18% – 24%. Adjusted EBITDA in 2013 is expected to grow approximately 16% over an adjusted $65.6 million for 2012.

CBIZ will host a conference call at 11:00 a.m. this morning to discuss its results, the divestiture of MMP, and the share purchase transaction with Westbury. The call will be webcast in a listen-only mode over the internet for the media and the public, and can be accessed at www.cbiz.com. Shareholders and analysts who would like to participate in the call can register at this link to receive the dial-in number and unique pin number. Participants may register at anytime, including up to and after the call start time.

A replay of the webcast will be available approximately two hours following the call on the Company’s web site at www.cbiz.com. For those without internet access, a replay of the call will also be available starting at approximately 1:00 p.m. (ET) July 29, through 5:00 p.m. (ET), August 2, 2013. The dial-in number for the replay is 1-877-344-7529. If you are listening from outside the United States, dial 1-412-317-0088. The access code for the replay is 10031404.

CBIZ, Inc. provides professional business services that help clients better manage their finances and employees. CBIZ provides its clients with financial services including accounting, tax, financial advisory, government health care consulting, risk advisory, merger and acquisition advisory, real estate consulting, and valuation services. Employee services include employee benefits consulting, property and casualty insurance, retirement plan consulting, payroll, life insurance, HR consulting, and executive recruitment. As one of the nation’s largest brokers of employee benefits and property and casualty insurance, and one of the largest accounting and valuation companies in the United States, the Company’s services are provided through nearly 100 Company offices in 32 states.

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 close the sale of its Medical Management Professionals business to Zotec Partners, LLC, including the satisfaction of customary closing conditions and regulatory approvals, the impact of the disposition on the Company’s stock price; the anticipated benefits of the disposition on the Company’s financial results, business performance, and product offerings; 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 the Company’s 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 Securities and Exchange Commission.

For further information regarding CBIZ, call our Investor Relations Office at (216) 447-9000 or visit our web site at www.cbiz.com.

                                                                            CBIZ, INC.

                                                                 FINANCIAL HIGHLIGHTS (UNAUDITED)

                                                            THREE MONTHS ENDED JUNE 30, 2013 AND 2012

                                                      (In thousands, except percentages and per share data)

                                                                             THREE MONTHS ENDED

                                                                                  JUNE 30,
                                                                                 --------

                                                                                        2013             %          2012 (1)   %
                                                                                        ----            ---          -------  ---

    Revenue                                                                        $172,511                100.0%  $154,206      100.0%

    Operating expenses (2)                                                          151,627                 87.9%   136,013       88.2%

    Gross margin                                                                     20,884                 12.1%    18,193       11.8%

    Corporate general and administrative expenses
     (3)                                                                               7,649                  4.4%     7,575        4.9%

    Operating income                                                                 13,235                  7.7%    10,618        6.9%

    Other income (expense):

           Interest expense                                                           (4,145)                -2.4%    (3,831)      -2.5%

            Gain on sale of
            operations, net                                                               48                  0.0%        50        0.0%

            Other income
            (expense), net (4)
             (5)                                                                         515                  0.3%      (884)      -0.5%

                Total other expense, net                                              (3,582)                -2.1%    (4,665)      -3.0%

    Income from continuing operations before income
     tax expense                                                                       9,653                  5.6%     5,953        3.9%

    Income tax expense                                                                4,202                           2,198

    Income from continuing operations                                                 5,451                  3.2%     3,755        2.4%

    Gain from operations of discontinued
     businesses, net of tax                                                            1,791                           2,075

    Gain on disposal of discontinued businesses,
     net of tax                                                                        1,905                              18

    Net income                                                                       $9,147                  5.3%    $5,848        3.8%
                                                                                     ======                          ======

    Diluted earnings per share:

           Continuing operations                                                       $0.11                           $0.08

            Discontinued
            operations                                                                  0.07                            0.04

           Net income                                                                  $0.18                           $0.12

            Diluted weighted
            average common shares
            outstanding                                                               49,929                          49,244

    Other data from continuing operations:

    Adjusted EBIT (6)                                                               $13,750                          $9,734

    Adjusted EBITDA (6)                                                             $18,499                         $13,883

      (1)   Certain amounts in the 2012 financial data have
            been reclassified to conform to the current year
            presentation and revised to reflect the impact of
            discontinued operations.

      (2)   Includes expense of $154 and a benefit of $850 for
            the three months ended June 30, 2013 and 2012,
            respectively, in compensation associated with net
            gains and losses from the Company's deferred
            compensation plan (see note 4). Excluding this
            item, "operating expenses" would be $151,473 and
            $136,863, or 87.8% and 88.8% of revenue, for the
            three months ended June 30, 2013 and 2012,
            respectively.

      (3)   Includes a benefit of $35 for the three months
            ended June 30, 2013 and 2012, in compensation
            associated with losses from the Company's
            deferred compensation plan (see note 4).
            Excluding this item, "corporate general and
            administrative expenses" would be $7,684 and
            $7,610, or 4.5% and 4.9% of revenue, for the
            three months ended June 30, 2013 and 2012,
            respectively.

      (4)   Includes net gains of $119 and net losses of $885
            for the three months ended June 30, 2013 and
            2012, respectively, attributable to assets held
            in the Company's deferred compensation plan.
            These net losses or gains do not impact "income
            from continuing operations before income tax
            expense" as they are directly offset by
            compensation adjustments included in "operating
            expenses" and "corporate general and
            administrative expenses."

      (5)   For the three months ended June 30, 2013 and 2012,
            amount includes expenses of $17 and $147,
            respectively, related to net increases in the
            fair value of contingent consideration related to
            CBIZ's prior acquisitions.

      (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 $4,749
            and $4,149 for the three months ended June 30,
            2013 and 2012, respectively. The Company has
            included Adjusted EBIT and Adjusted EBITDA 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 service
            debt. Adjusted EBIT and Adjusted EBITDA should
            not be regarded as an alternative or replacement
            to any measurement of performance under generally
            accepted accounting principles.

                                                                            CBIZ, INC.

                                                                 FINANCIAL HIGHLIGHTS (UNAUDITED)

                                                             SIX MONTHS ENDED JUNE 30, 2013 AND 2012

                                                      (In thousands, except percentages and per share data)

                                                                             SIX MONTHS ENDED

                                                                                  JUNE 30,
                                                                                 --------

                                                                                        2013             %          2012 (1)   %
                                                                                        ----            ---          -------  ---

    Revenue                                                                        $373,945                100.0%  $341,762      100.0%

    Operating expenses (2)                                                          311,625                 83.3%   285,579       83.6%

    Gross margin                                                                     62,320                 16.7%    56,183       16.4%

    Corporate general and administrative expenses
     (3)                                                                              17,633                  4.7%    18,119        5.3%

    Operating income                                                                 44,687                 12.0%    38,064       11.1%

    Other income (expense):

           Interest expense                                                           (8,201)                -2.2%    (7,622)      -2.2%

            Gain on sale of
            operations, net                                                               66                  0.0%     2,639        0.8%

            Other income, net (4)
             (5)                                                                       2,243                  0.6%     2,481        0.7%

                Total other expense, net                                              (5,892)                -1.6%    (2,502)      -0.7%

    Income from continuing operations before income
     tax expense                                                                      38,795                 10.4%    35,562       10.4%

    Income tax expense                                                               16,441                          14,615

    Income from continuing operations                                                22,354                  6.0%    20,947        6.1%

    Gain from operations of discontinued
     businesses, net of tax                                                            3,168                           3,646

    Gain on disposal of discontinued businesses,
     net of tax                                                                        1,928                              40

    Net income                                                                      $27,450                  7.3%   $24,633        7.2%
                                                                                    =======                         =======

    Diluted earnings per share:

           Continuing operations                                                       $0.45                           $0.42

            Discontinued
            operations                                                                  0.10                            0.08

           Net income                                                                  $0.55                           $0.50

            Diluted weighted
            average common shares
            outstanding                                                               49,891                          49,391

    Other data from continuing operations:

    Adjusted EBIT (6)                                                               $46,930                         $40,545

    Adjusted EBITDA (6)                                                             $56,304                         $48,806

      (1)   Certain amounts in the 2012 financial data have
            been reclassified to conform to the current year
            presentation and revised to reflect the impact of
            discontinued operations.

      (2)   Includes expense of $2,381 and $1,835 for the six
            months ended June 30, 2013 and 2012,
            respectively, in compensation associated with net
            gains from the Company's deferred compensation
            plan (see note 4). Excluding this item,
            "operating expenses" would be $309,244 and
            $283,744, or 82.7% and 83.0% of revenue, for the
            six months ended June 30, 2013 and 2012,
            respectively.

      (3)   Includes expenses of $240 and $278 for the six
            months ended June 30, 2013 and 2012,
            respectively, in compensation associated with
            gains from the Company's deferred compensation
            plan (see note 4).  Excluding this item,
            corporate general and administrative expenses
            would be $17,393 and $17,841, or 4.7% and 5.2% of
            revenue, for the six months ended June 30, 2013
            and 2012, respectively.

      (4)   Includes net gains of $2,621 and $2,113 for the
            six months ended June 30, 2013 and 2012,
            respectively, attributable to assets held in the
            Company's deferred compensation plan. These net
            gains do not impact "income from continuing
            operations before income tax expense" as they are
            directly offset by compensation adjustments
            included in "operating expenses" and "corporate
            general and administrative expenses."

      (5)   For the six months ended June 30, 2013 and 2012,
            amount includes an expense of $904 and income of
            $103, respectively, related to net increases and
            decreases in the fair value of contingent
            consideration related to CBIZ's prior
            acquisitions.

      (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 $9,374
            and $8,261 for the six months ended June 30, 2013
            and 2012, respectively. The Company has included
            Adjusted EBIT and Adjusted EBITDA 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 service debt.
            Adjusted EBIT and Adjusted EBITDA should not be
            regarded as an alternative or replacement to any
            measurement of performance under generally
            accepted accounting principles.

                                                                                          CBIZ, INC.

                                                                               FINANCIAL HIGHLIGHTS (UNAUDITED)

                                                                             (In thousands, except per share data)

                                                                                      SELECT SEGMENT DATA
                                                                                      -------------------

                                                             THREE MONTHS ENDED                                            SIX MONTHS ENDED

                                                                  JUNE 30,                                                 JUNE 30,
                                                                  --------                                                --------

                                                                              2013                           2012 (1)                                      2013                             2012 (1)
                                                                              ----                            -------                                      ----                              -------

      Revenue

      Financial Services                       $113,808                                                      $101,336                                  $254,978                             $233,500

      Employee Services                          51,489                             45,609                                   104,267                             93,668

      National Practices                          7,214                              7,261                                    14,700                             14,594

                                          Total                           $172,511                           $154,206                                  $373,945                             $341,762
                                          =====

      Gross Margin

      Financial Services                        $14,579                                                       $12,205                                   $50,234                              $47,136

      Employee Services                           8,621                              7,089                                    18,777                             15,700

      National Practices                            339                                602                                       875                              1,213

      Operating expenses -
       unallocated (2):

                                          Other                             (2,501)                            (2,553)                                   (5,185)                              (6,031)

                                           Deferred
                                           compensation                       (154)                               850                                    (2,381)                              (1,835)

                                          Total                            $20,884                            $18,193                                   $62,320                              $56,183
                                          =====

      (1)                                  Certain amounts in the 2012 financial data have been
                                           reclassified to conform to the current year
                                           presentation and revised to reflect the impact of
                                           discontinued operations.

      (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, net" in the consolidated statements of
                                           comprehensive income. Gains or losses 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 or expense in "other
                                           income, net."

                                                                             NON-GAAP EARNINGS AND PER SHARE DATA
                                                                             ------------------------------------

                                            Reconciliation of Income from Continuing Operations to Non-GAAP Earnings from Continuing Operations (3)
                                            ------------------------------------------------------------------------------------------------------

                                                            THREE MONTHS ENDED JUNE 30,
                                                            ---------------------------

                                                                              2013                   Per Share                                         2012 (1)                    Per Share
                                                                              ----                  ---------                                           -------                   ---------

    Income from Continuing Operations                                       $5,451                              $0.11                                    $3,755                                $0.08

    Selected non-cash items:

      Amortization                                3,586                               0.07                                     2,949                               0.06

      Depreciation                                1,163                               0.02                                     1,200                               0.02

      Non-cash interest
       on convertible
       notes                                        710                               0.02                                       659                               0.01

      Stock-based
       compensation                               1,488                               0.03                                     1,363                               0.03

      Adjustment to
       contingent
       earnouts                                      17                                                            -                                       147                                    -
                                                    ---                                                          ---                                       ---

                                           Non-cash
                                           items                             6,964                               0.14                                     6,318                                 0.12

    Non-GAAP earnings - Continuing Operations                              $12,415                              $0.25                                   $10,073                                $0.20
                                                                           =======                              =====                                   =======                                =====

                                                             SIX MONTHS ENDED JUNE 30,
                                                             -------------------------

                                                                              2013                   Per Share                                         2012 (1)                    Per Share
                                                                              ----                  ---------                                           -------                   ---------

    Income from Continuing Operations                                      $22,354                              $0.45                                   $20,947                                $0.42

    Adjustment for gain on sale of operations                                    -                                  -                                    (1,547)                               (0.03)

    Selected non-cash items:

      Amortization                                7,042                               0.14                                     5,851                               0.12

      Depreciation (4)                            2,332                               0.05                                     2,410                               0.05

      Non-cash interest
       on convertible
       notes                                      1,394                               0.03                                     1,295                               0.03

      Stock-based
       compensation                               2,924                               0.06                                     2,869                               0.05

      Adjustment to
       contingent
       earnouts                                     904                               0.01                                      (103)                                                             -

                                           Non-cash
                                           items                            14,596                               0.29                                    12,322                                 0.25
                                          ---------

    Non-GAAP earnings - Continuing Operations                              $36,950                               0.74                                   $31,722                                $0.64
                                                                           =======                               ====                                   =======                                =====

      (3)                                  The Company believes Non-GAAP earnings and Non-
                                           GAAP earnings per diluted share 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. Non-GAAP 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. Non-
                                           GAAP earnings per diluted share is calculated by
                                           dividing Non-GAAP earnings by the number of
                                           weighted average diluted common shares outstanding
                                           for the period indicated. Non-GAAP earnings and
                                           Non-GAAP earnings per diluted share should not be
                                           regarded as a replacement or alternative to any
                                           measurement of performance under generally accepted
                                           accounting principles.

      (4)                                  Capital spending was $3.1 million and $2.2 million
                                           for the six months ended June 30, 2013 and 2012,
                                           respectively.

                                    CBIZ, INC.

                         FINANCIAL HIGHLIGHTS (UNAUDITED)

                   (In thousands, except percentages and ratios)

                        SELECT BALANCE SHEET DATA AND RATIOS
                        ------------------------------------

                                             JUNE 30,                    DECEMBER 31,

                                                      2013                         2012 (1)
                                                      ----                          -------

     Cash
     and
     cash
     equivalents                                    $1,187                             $899

     Restricted
     cash                                          $28,219                          $19,627

     Accounts
     receivable,
     net                                          $161,402                         $137,058

     Assets
     of
     discontinued
     operations                                   $102,087                         $103,291

     Current
     assets
     before
     funds
     held
     for
     clients                                      $318,011                         $278,587

     Funds
     held
     for
     clients
     -

      current
     and
     non-
     current                                      $116,370                         $154,447

     Goodwill
     and
     other
     intangible
     assets,
     net                                          $474,981                         $470,997

     Total
     assets                                       $980,229                         $970,946

     Notes
     payable
     -
     current                                        $4,875                           $6,217

     Liabilities
     of
     discontinued
     operations                                    $11,553                          $14,144

     Current
     liabilities
     before
     client
     fund
     obligations                                  $170,215                         $159,278

     Client
     fund
     obligations                                  $116,338                         $154,119

     Notes
     payable
     -

      long-
     term                                           $1,222                           $1,222

     Convertible
     notes
     -

      non-
     current                                      $123,810                         $122,416

     Bank
     debt                                         $204,000                         $208,900

     Total
     liabilities                                  $655,577                         $675,714

     Treasury
     stock                                       $(371,890)                       $(371,080)

     Total
     stockholders'
     equity                                       $324,652                         $295,232

     Debt
     to
     equity
     (2)                       102.9%                             114.7%

     Days
     sales
     outstanding
     (DSO)
     -
     continuing
     operations
     (3)                          83                                 77

     Shares
     outstanding              50,918                             50,365

     Basic
     weighted
     average
     common
     shares
     outstanding              49,535                             49,002

     Diluted
     weighted
     average
     common
     shares
     outstanding              49,891                             49,252

                     (1)   Certain amounts in
                           the 2012
                           financial data
                           have been
                           reclassified to
                           conform to the
                           current year
                           presentation and
                           revised to
                           reflect the
                           impact of
                           discontinued
                           operations.

                     (2)   Ratio is
                           convertible notes
                           and bank debt
                           divided by total
                           stockholders'
                           equity.

                     (3)   DSO is provided
                           for continuing
                           operations and
                           represents
                           accounts
                           receivable, net
                           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 June 30, 2012
                           was 83.

                                                                                CBIZ, INC.

                                                                  SELECT PRO FORMA FINANCIAL INFORMATION

                                                          FOR THE YEARS ENDED DECEMBER 31, 2012, 2011, AND 2010

                                                                  (In thousands, except per share data)

                                                                          2012
                                                                          ----

                                                        CBIZ as                              Adjustments for                         CBIZ

                                                        Reported                             Sale of MMP (1)                     Pro Forma (2)
                                                       --------                              --------------                      ------------

     Revenue                                                   $766,094                                         $138,016                       $628,078

     Operating expenses                                         680,195                                          122,958                        557,237
                                                                -------                                          -------                        -------

     Gross margin                                                85,899                                           15,058                         70,841

     Corporate general
      and administrative
      expenses                                                   30,422                                              213                         30,209
                                                                 ------                                              ---                         ------

     Operating income                                           $55,477                                          $14,845                        $40,632

     Total other
      expense, net                                              $(5,074)                                         $(1,054)                       $(4,020)

     Income after
      income tax
      expense                                                   $31,075                                           $8,442                        $22,633

     (Loss) gain from
      operations of
      discontinued
      businesses, net of
      tax                                                           (19)                                          (8,442)                         8,423

     Gain on disposal of
      discontinued
      businesses, net of
      tax                                                            90                                                -                             90

     Net income                                                 $31,146      $                                         -                        $31,146
                                                                                                                     ===

     Diluted weighted
      average common
      share outstanding                                          49,252                                           49,252                         49,252

     Diluted
      earnings
      per
      share:

        Continuing
         operations                                               $0.63                                            $0.17                          $0.46

        Discontinued
         operations                                                0.00                                            (0.17)                          0.17

        Net income                                                $0.63      $                                         -                          $0.63
                                                                                                                     ===

     Adjusted EBITDA                                            $85,294                                          $19,715                        $65,579

                                                                          2011
                                                                          ----

                                                        CBIZ as                              Adjustments for                         CBIZ

                                                        Reported                             Sale of MMP (1)                     Pro Forma (2)
                                                       --------                              --------------                      ------------

     Revenue                                                   $733,805                                         $141,046                       $592,759

     Operating expenses                                         644,269                                          124,668                        519,601
                                                                -------                                          -------                        -------

     Gross margin                                                89,536                                           16,378                         73,158

     Corporate general
      and administrative
      expenses                                                   31,583                                               50                         31,533
                                                                 ------                                              ---                         ------

     Operating income                                           $57,953                                          $16,328                        $41,625

     Total other
      expense, net                                             $(10,986)                                         $(1,060)                       $(9,926)

     Income after
      income tax
      expense                                                   $28,584                                           $9,176                        $19,408

     (Loss) gain from
      operations of
      discontinued
      businesses, net of
      tax                                                          (591)                                          (9,176)                         8,585

     Gain on disposal of
      discontinued
      businesses, net of
      tax                                                            14                                                -                             14

     Net income                                                 $28,007      $                                         -                        $28,007
                                                                                                                     ===

     Diluted weighted
      average common
      share outstanding                                          49,599                                           49,599                         49,599

     Diluted
      earnings
      per
      share:

        Continuing
         operations                                               $0.58                                            $0.19                          $0.39

        Discontinued
         operations                                               (0.02)                                           (0.19)                          0.17

        Net income                                                $0.56      $                                         -                          $0.56
                                                                                                                     ===

     Adjusted EBITDA                                            $81,747                                          $21,595                        $60,152

                                                                          2010
                                                                          ----

                                                        CBIZ as                              Adjustments for                         CBIZ

                                                        Reported                             Sale of MMP (1)                     Pro Forma (2)
                                                       --------                              --------------                      ------------

     Revenue                                                   $730,401                                         $148,425                       $581,976

     Operating expenses                                         644,335                                          131,754                        512,581
                                                                -------                                          -------                        -------

     Gross margin                                                86,066                                           16,671                         69,395

     Corporate general
      and administrative
      expenses                                                   29,584                                                4                         29,580
                                                                 ------                                              ---                         ------

     Operating income                                           $56,482                                          $16,667                        $39,815

     Total other
      expense, net                                             $(11,310)                                         $(1,140)                      $(10,170)

     Income after
      income tax
      expense                                                   $28,155                                           $9,338                        $18,817

     (Loss) gain from
      operations of
      discontinued
      businesses, net of
      tax                                                        (2,668)                                          (9,338)                         6,670

     Gain on disposal of
      discontinued
      businesses, net of
      tax                                                          (973)                                               -                           (973)

     Net income                                                 $24,514      $                                         -                        $24,514
                                                                                                                     ===

     Diluted weighted
      average common
      share outstanding                                          58,193                                           58,193                         58,193

     Diluted
      earnings
      per
      share:

        Continuing
         operations                                               $0.48                                            $0.16                          $0.32

        Discontinued
         operations                                               (0.06)                                           (0.16)                          0.10

        Net income                                                $0.42      $                                         -                          $0.42
                                                                                                                     ===

     Adjusted EBITDA                                            $82,342                                          $22,528                        $59,814

     (1) Adjustments for MMP include the previously reported operating results for MMP as well as adjustments for allocation of
      interest expense and income tax expense.

     (2) The CBIZ Pro Forma reflects the adjusted results of operations after the impact of discontinuing the operations of MMP.

SOURCE CBIZ, Inc.


Source: PR Newswire