CBIZ Q2 Profit Rises - Quick Facts

(RTTNews) - CBIZ Inc. (CBZ) reported that its second-quarter net income was $9.15 million or $0.18 per share, compared to $5.85 million or $0.12 per share in the same quarter last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.15 per share for the quarter. Analysts' estimates typically exclude special items.

Income from continuing operations was $5.5 million, or $0.11 per share, compared to $3.8 million, or $0.08 per share reported in the second quarter of 2012.

Second quarter 2013 Non-GAAP earnings, which includes certain non-cash charges and credits to income from continuing operations, were $0.25 per share, compared with $0.20 per share a year ago.

CBIZ reported revenue of $172.5 million, an increase of $18.3 million, or 11.9%, compared with adjusted results of $154.2 million for the second quarter of 2012.

The company noted that the Certain amounts in the 2012 financial data have been reclassified to conform to the latest-year presentation and revised to reflect the impact of discontinued operations.

The Company also announced that it has signed a definitive agreement to sell its Medical Management Professionals or "MMP" business for $200 million to Zotec Partners, LLC. Subject to customary closing conditions and regulatory approvals, the transaction is expected to close August 31, 2013, and the Company expects proceeds, net of tax and other transaction costs, to be approximately $145 million.

The Company also announced that it has entered into an agreement with Westbury (Bermuda) Ltd. to purchase 3.85 million shares of the Company's common stock, immediately after and contingent upon the close of the sale of MMP, at a price of $6.65 per share which represents the 60-day moving average share price at July 16, 2013. This purchase represents 50% of Westbury's current holdings of approximately 7.7 million shares of the Company's common stock.

The Company maintains its previously agreed option to purchase the remainder of shares that Westbury owns in the Company, pursuant to the Stock and Option Purchase Agreement dated September 14, 2010.

With the sale of MMP, adjusted results of continuing operations for 2012 reflect revenue of $628.1 million and earnings per diluted share from continuing operations of $0.41, excluding the $0.05 earnings per diluted share impact of the non-recurring gain on sale of the wealth management business and favorable legal settlement recorded in 2012. Compared to these adjusted results, CBIZ expects to achieve revenue growth in 2013 within a range of 9% - 12%, and earnings per diluted share growth within a range of 18% - 24%. Analysts expect the company to report earnings of $0.65 per share for fiscal 2013.