CBIZ, Inc. (NYSE:CBZ) Q2 2018 Earnings Conference Call - Final Transcript

Aug 02, 2018 • 11:00 am ET


CBIZ, Inc. (NYSE:CBZ) Q2 2018 Earnings Conference Call - Final Transcript


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Good morning. And welcome to the CBIZ Second Quarter and First Half 2018 Results Conference Call. All participants will be in listen-only mode. (Operator Instructions) After todays presentation, there will be an opportunity to ask questions. (Operator Instructions) Please note, this event is being recorded.

I would now like to turn the conference over to Lori Novickis, Director of Corporate Relations. Please go ahead.

Lori Novickis

Thank you, Andrea. Good morning, everyone. And thank you for joining us for the CBIZ second quarter and first half 2018 results conference call. In connection with this call, today's press release has been posted on the Investor Relations page of our website, www.cbiz.com. This call is also being webcast. A link to the live webcast, as well as the replay can also be found on our website.

(Forward-Looking Cautionary Statements)

Joining us for today's call are Jerry Grisko, President and CEO; and Ware Grove, Chief Financial Officer.

I will now turn the call over to Jerry Grisko for his opening remarks. Jerry?

Jerry Grisko

Thank you, Lori, and good morning, everyone. With this morning's release, we are pleased to report continued strong results for the second quarter and for the first half of 2018. Total revenue grew by 10.2% in the second quarter and grew by the same 10.2% for the first half of this year, of that growth, same-unit revenue represents 5.9% for the second quarter and 5.8% year-to-date.

Recent acquisitions are continuing to perform well with acquisition-related growth contributing 4.3% to our total growth in the second quarter and 4.4% for the first half. We are pleased to be able to leverage this revenue growth into higher margins and report earnings per share of $0.87 for the first six months of this year, which is up 31.8% over the first six months a year ago.

The business climate continues to be favorable, which has contributed to strong demand for our services, including strong demand within some of our more transactional businesses, such as recruiting, real estate tenant advisory and corporate restructuring and recovery services. For the first half of this year, growth in our transactional services business has accounted for approximately 1% of the 5.8% same-unit total growth for the company.

Within our Financial Services group, total revenue increased by 14.4% in the second quarter and increased by 14.2% for the first half of the year. Same-unit revenue within this group grew by 8.4% in the second quarter and improved by 8% for the first six months of this year. First half same-unit revenue growth was strong in both our core tax and accounting servicing business, as well as our government health care consulting business.

As we commented on our earnings call in the first quarter, performance of our private equity advisory business, which is included in our Financial Services group, also continues to be very strong. CMF Associates, which was acquired in June of last year and Laurus Transaction Advisors, which was acquired in February of this year, are now going to market as a