CBIZ, Inc. (NYSE:CBZ) Q2 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 11:00 am ET


CBIZ, Inc. (NYSE:CBZ) Q2 2020 Earnings Conference Call - Final Transcript


Loading Event

Loading Transcript


Good morning, and welcome to the CBIZ Second Quarter 2020 Results Conference Call. [Operator Instructions] [Operator Instructions]

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

Lori Novickis

Good morning, everyone, and thank you for joining us for the CBIZ Second Quarter and First Half 2020 Results Conference Call. In connection with this call, today's press release has been posted on the Investor Relations page of our website, cbiz.com. This call is being webcast. A link to the live webcast as well as the replay and transcript 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 Chief Executive Officer; and Ware Grove, Chief Financial Officer.

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

Jerome Grisko

Thank you, Lori, and good morning, everyone. Before I discuss our results for the quarter and year-to-date, I thought it would be helpful to review certain of the key attributes of our business that we discussed at the end of the first quarter. Including that, approximately 70% of our revenue is generated from essential services, including our tax services, insurance services, payroll services and a host of others that we provide to our clients regardless of economic conditions in the market. We generally retain approximately 90% of our clients from year-to-year. We have a broad geographic footprint. We serve a diverse client base in terms of size and industry. We enjoy strong and consistent cash flow.

We have a substantial amount of variable expenses in our business, including a considerable amount of variable compensation based on the performance of the business. We have a strong balance sheet with ready access to capital, and we entered into the current environment with very low amount debt and in a very strong financial position. And it's those attributes that make us confident that our business will continue to perform well in our current environment. And in fact, that's precisely what we experienced in the second quarter and year-to-date. For the second quarter of 2020, revenue increased by $1.4 million over the same period in 2019.

Earnings per share increased by 30% from $0.30 per diluted share for the second quarter last year compared with $0.39 per diluted share for the same period this year. And our adjusted EBITDA