Fri, Feb 28, 3:03 PM (58 days ago)
CBIZ, Inc. (NYSE: CBZ) reported a strong financial performance for the fiscal year ending December 31, 2024, with total revenue of $1,813.5 million, reflecting a 14% increase from $1,591.2 million in 2023. However, net income decreased significantly by 66.1% to $41.0 million, primarily due to increased operating expenses associated with recent acquisitions, including the notable acquisition of Marcum LLP, which closed on November 1, 2024. Earnings per share (EPS) dropped to $0.78 from $2.39. Operating expenses rose to $1,631.0 million (89.9% of revenue), driven by higher personnel costs and integration expenses. The company aims to leverage its acquisitions to enhance growth and market position while managing a substantial debt load of $1.4 billion under the 2024 Credit Facilities. The strategic focus remains on maximizing cash flow to facilitate future acquisitions and share repurchases. Risk factors include integration challenges from acquisitions, compliance with debt covenants, and potential impacts from regulatory changes. The outlook remains cautiously optimistic, contingent on effective integration and financial management post-acquisition.