Q2 2024 CBIZ Inc Earnings Call Transcript
Key Points
- CBIZ Inc (CBZ) reported a 5.4% increase in total revenues for the second quarter and a 7.2% increase for the first half of 2024.
- The Marcum acquisition will position CBIZ Inc (CBZ) as the seventh largest accounting services provider in the nation with combined revenues of approximately $2.8 billion.
- The acquisition is expected to be 10% accretive to adjusted EPS in the first year and is projected to grow over time.
- CBIZ Inc (CBZ) has a strong balance sheet with a leverage ratio of approximately 1.7 times adjusted EBITDA, providing ample capacity for the Marcum acquisition.
- The company has a healthy pipeline of new opportunities, particularly in its government healthcare consulting business, which has shown strong momentum.
- The exit of a small team of producers in the property and casualty insurance business negatively impacted second-quarter revenue by approximately $2.5 million and adjusted EPS by $0.03.
- CBIZ Inc (CBZ) incurred $6.7 million in expenses related to the Marcum transaction in the second quarter.
- Higher-than-normal claims costs in the self-insured health benefits program resulted in an incremental $0.02 per share impact in the second quarter and a year-to-date impact of $0.05 per share.
- The company experienced delays in project-based discretionary services and investments in systems and implementations, affecting revenue timelines.
- The quarter-over-quarter comparison of margin and earnings contribution was negatively affected by staffing investments made in the second half of 2023 to support growth.
Good morning and welcome to the CBIZ second quarter and first half 2024 results and the Marcum acquisition conference call. (Operator Instructions) Please also note today's event is being recorded.
At this time, I would like to turn the floor over to Lori Novickis, Director of Corporate Relations. Ma'am, you may begin.
Good morning, everyone, and thank you for joining us on today's conference call to discuss the second quarter and first half 2024 results and the Marcum acquisition, which was also announced this morning.
As a reminder, this call is being webcast and a link to the live webcast can be found on our Investor Relations page of our website at cbiz.com. A replay and transcript will also be made available after the call. The press releases and investor presentations for both our second quarter and first half results and the Marcum acquisitions have been posted to the Investor Relations page of our website.
We will begin with our prepared remarks of our financial
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