CBIZ, Inc. (NYSE:CBZ) Q4 2018 Earnings Conference Call Transcript

Feb 13, 2019 • 11:00 am ET


CBIZ, Inc. (NYSE:CBZ) Q4 2018 Earnings Conference Call Transcript


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Good morning. And welcome to the CBIZ Fourth Quarter and Full Year 2018 Results Conference Call. All participants will be in listen-only mode. (Operator Instructions) After today's 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, Gary. Good morning, everyone. And thank you for joining us for the CBIZ fourth quarter and full year 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 being webcast. A link to the live webcast, as well as the replay can also be found on our website.

Before, we begin our presentation, we would like to remind you that during the call, management may discuss certain non-GAAP financial measures. A reconciliation of these measures can be found in the financial tables of today's press release.

Finally, remember that management may also make forward-looking statements. Such statements are based on current information and management's expectations as of this date and do not guarantee future performance. Forward-looking statements involve certain risks, uncertainties, and assumptions that can be difficult to predict. Actual results can and sometimes do differ materially. A more detailed description of such risks and uncertainties can be found in the company's filings with the Securities and Exchange Commission.

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

I'll now turn the call over to Jerry for his opening remarks. Jerry?

Jerome Grisko

Thank you, Lori. Good morning, everyone. As I referenced in the press release that was sent out earlier this morning, 2018 was an exceptional year for CBIZ. The favorable business climate that we experienced throughout the year resulted in strong demand for many of our core accounting and our Benefits and Insurance Services that we provide to our clients. And we also experienced strong demand for a number of our more project-oriented services. This resulted in very strong financial performance, including total revenue growth of 7.8% and organic revenue growth of 4.7% for the full year. Growth from our newly acquired operations contributed another 3.1% to our total revenue growth and at $1.09 our earnings per share for the full year reflects an increase of 18.5% over the $0.92 per share reported a year ago.

As we've discussed in the past, the fourth quarter is normally seasonally slower for us and we experienced some of that slowdown again this year. For the fourth quarter, our total revenue grew by 2%, of which same-unit revenue contributed 0.4% and newly acquired operations contributed 1.6%. The seasonally lower revenues combined with the impact of the strategic investments spending this year resulted in a loss of $0.02 per share in the fourth quarter this year.

Please remember that there were several unique factors that occurred a year ago, that caused our fourth quarter