CBIZ Inc (CBZ) 2024 Q1 法說會逐字稿

Good day and welcome to the CBIZ first-quarter 2024 results conference call. (Operator instructions) Please note this event is being recorded.

美好的一天，歡迎參加 CBIZ 2024 年第一季業績電話會議。 （操作員說明）請注意此事件正在被記錄。

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

我現在想將會議交給企業關係總監 Lori Novickis。

Good morning, everyone, and thank you for joining us for the CBIZ first-quarter 2024 results conference call.

大家早安，感謝您參加我們的 CBIZ 2024 年第一季業績電話會議。

In connection with this call, today's press release and investor presentation have been posted to the Investor Relations page of our website, cbiz.com. As a reminder, this call is being webcast and a link to live webcast can be found on our Investor Relations website and archived replay and transcript will also be made available after the call.

與本次電話會議相關的今天的新聞稿和投資者簡報已發佈在我們網站 cbiz.com 的投資者關係頁面上。謹此提醒，本次電話會議正在進行網絡直播，您可以在我們的投資者關係網站上找到現場網絡直播的鏈接，並且在電話會議後也將提供存檔的重播和文字記錄。

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

在開始之前，我們想提醒您，在電話會議期間，管理階層可能會討論某些非公認會計準則財務指標。這些措施的調節可以在今天的新聞稿和投資者介紹的財務表格中找到。

Today's call will also include forward-looking statements regarding our business, financial condition, results of operations, cash flows, strategies, and prospects. Forward looking statements represent only estimates on the date of this call and are not intended to give any assurance of future results.

今天的電話會議還將包括有關我們的業務、財務狀況、經營業績、現金流量、策略和前景的前瞻性陳述。前瞻性陳述僅代表本次電話會議日的估計，並非旨在對未來結果提供任何保證。

Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties. Many factors could cause future results to differ materially, and CBIZ assumes no obligation to update these statements. A more detailed description of such factors can be found in our filings with the Securities and Exchange Commission.

由於前瞻性陳述涉及尚未發生的事項，因此這些陳述本質上會受到風險和不確定性的影響。許多因素可能導致未來結果出現重大差異，CBIZ 不承擔更新這些聲明的義務。有關這些因素的更詳細描述可以在我們向美國證券交易委員會提交的文件中找到。

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

加入我們今天電話會議的有總裁兼執行長 Jerry Grisko 和財務長 Ware Grove。

I will now turn the call over to Jerry Grisko. Jerry?

我現在將把電話轉給傑瑞·格里斯科。傑瑞？

Thank you, Lori, and good morning, everyone.

謝謝你，洛瑞，大家早安。

We are pleased to report that we're off to a strong start to the year. For the first quarter, total revenue was up 8.7% with growth coming from every major service line across our two business divisions. Our performance for the quarter came in as expected and reflects continued strong demand for our services and the optimism and resilience of the clients that we serve.

我們很高興地報告，今年我們有一個好的開始。第一季度，總收入成長了 8.7%，成長來自我們兩個業務部門的每條主要服務線。我們本季的業績符合預期，反映了對我們服務的持續強勁需求以及我們服務的客戶的樂觀和韌性。

Now turning to the performance of our two major divisions. Our financial services division demonstrated growth across each of its three major service groups, the accounting and tax, advisory, and government health care consulting.

現在轉向我們兩個主要部門的表現。我們的金融服務部門在其三個主要服務集團（會計和稅務、諮詢以及政府醫療保健諮詢）中均取得了成長。

For our tax & accounting business, client demand for these essential and recurring services remains high, and our results include our continued success in capturing increased pricing to reflect the value of the services that we provide to our clients. Likewise, our advisory services also enjoyed a strong start to the year, including for those services that are more closely tied to M&A activity. After we started the year with cautious optimism, we are already seeing the impact of improved deal flow in Q1 with especially strong demand for our private equity-related advisory services.

對於我們的稅務和會計業務，客戶對這些基本和經常性服務的需求仍然很高，我們的成果包括我們不斷成功地提高定價，以反映我們為客戶提供的服務的價值。同樣，我們的諮詢服務今年也取得了良好的開局，包括那些與併購活動密切相關的服務。在我們以謹慎樂觀的態度開始今年之後，我們已經看到第一季交易流量改善的影響，對我們的私募股權相關諮詢服務的需求尤其強勁。

Encouragingly, we're also beginning to see increased demand for new projects within our technical accounting prep for IPOs service run. Our government healthcare consulting business was able to build on progress made in the second half of 2023, as this group was successful in securing new business and launching new projects. During the first quarter, the continued increased volume of work translated to strong growth to start the year.

令人鼓舞的是，我們也開始看到對 IPO 服務運作的技術會計準備中的新項目的需求增加。我們的政府醫療保健諮詢業務能夠在 2023 年下半年取得進展的基礎上再接再厲，因為該集團成功地獲得了新業務並啟動了新項目。第一季度，工作量的持續增加轉化為年初的強勁成長。

Now turning to our benefits and insurance division, where we maintained our record of achieving growth across each of our four major service lines. For our employee benefits business, the growth came primarily from strong client retention and market rates. Also, our producer pools off when compared to the same period last year.

現在轉向我們的福利和保險部門，我們在四個主要服務領域都保持著實現成長的記錄。對於我們的員工福利業務，成長主要來自強勁的客戶留任率和市場利率。此外，與去年同期相比，我們的生產商也出現了下滑。

For our property and casualty business, improved service revenue and market rates contributed to continued strong results. Our P&C business remains encouraged by a healthy pipeline of new business opportunities despite a slight decline in the number of producers as a result of planned retirements. Growth in our retirement investment services business was largely driven by market trend and special projects in our actuarial business. This group also continues to add producers.

對於我們的財產和意外傷害業務，服務收入和市場價格的提高有助於持續強勁的業績。儘管由於計劃退休而導致生產商數量略有下降，但我們的財產與意外傷害業務仍然受到一系列健康的新商機的鼓舞。退休投資服務業務的成長主要受到市場趨勢和精算業務特殊項目的推動。該團體也繼續增加生產者。

For our payroll business, strong interest in centrally HR, which is our upmarket payroll platform that serves larger and more sophisticated businesses continued to fuel strong growth. The growth in revenue we experienced in the first quarter was in line with our expectations and affirms the overall health of our business and the consistent demand for our services.

對於我們的薪資業務，對集中人力資源（我們為規模更大、更複雜的企業提供服務的高端薪資平台）的強烈興趣繼續推動強勁增長。我們第一季的營收成長符合我們的預期，並證實了我們業務的整體健康狀況以及對我們服務的持續需求。

With that by way of background, we are affirming our previously issued guidance for the year. I will now turn it over to Ware Grove, our Chief Financial Officer, to provide more specific details on our financial performance for the first quarter and to remind those on the call today of our guidance for 2024.

在此背景下，我們確認之前發布的今年指引。我現在將其轉交給我們的財務長 Ware Grove，提供有關我們第一季財務業績的更多具體細節，並提醒今天參加電話會議的人員我們對 2024 年的指導。

Ware?

潔具？

Thank you, Jerry, and good morning, everyone. Let me take a few minutes to talk about the key highlights of the first quarter numbers we released this morning.

謝謝傑瑞，大家早安。讓我花幾分鐘時間談談我們今天早上發布的第一季數據的主要亮點。

Total revenue in the first quarter increased by $39.7 million or up 8.7% over first quarter a year ago. Same unit revenue was up $26.9 million or up by 5.9%. With acquisitions contributing $12.8 million or 2.8% to growth compared to last year.

第一季總營收比去年同期成長 3,970 萬美元，成長 8.7%。同單位營收成長 2,690 萬美元，成長 5.9%。與去年相比，收購對成長的貢獻為 1,280 萬美元，即 2.8%。

Within financial services, for the first quarter, total revenue grew 8.6% and same unit revenue for the first quarter was up 5.1%, with strong revenue growth spread among core accounting, our advisory services and government health care consulting services.

在金融服務領域，第一季總營收成長 8.6%，第一季同單位營收成長 5.1%，核心會計、諮詢服務和政府醫療保健諮詢服務收入成長強勁。

Within benefits and insurance, for the first quarter, total revenue grew by 8.3%. Same-unit revenue was up 7.6% (sic - see press release, "7.8%"). Every major line of service within our benefits and insurance group reported revenue growth. The investments we have made hire new business producers in recent years is gaining traction, and we are continuing to make investments in hiring additional producers in order to further enhance growth potentials within this group.

在福利和保險方面，第一季總收入成長了 8.3%。同單位收入成長 7.6%（原文如此 - 請參閱新聞稿，「7.8%」）。我們的福利和保險集團內的每個主要服務領域都報告了收入成長。近年來，我們僱用新業務生產商的投資正在獲得越來越多的關注，我們將繼續投資僱用更多生產商，以進一步增強該群體的成長潛力。

Costs in the first quarter included several nonoperating items recorded within general administrative costs that impacted pretax margin. We have previously commented that legal costs are somewhat episodic and can be unpredictable throughout the year. In the first quarter, we reported higher legal expense impacted margin by approximately 50 basis points. There is no one significant issue driving this, rather this is higher cost is associated with small settlements and legal costs related to a variety of issues. So I wanted to highlight this for you.

第一季的成本包括一般管理成本中記錄的幾個影響稅前利潤的非營運項目。我們之前曾評論過，法律費用有些偶發性，而且全年都無法預測。第一季度，我們報告較高的法律費用影響了利潤率約 50 個基點。沒有一個重大問題推動這一點，相反，這是與小額和解相關的更高成本以及與各種問題相關的法律成本。所以我想向你們強調這一點。

Another item is a self-funded health care plan costs. We have also previously commented that this non-operating item can potentially cause short-term volatility in reported results. Higher costs in the first quarter this year impacted margin by 40 basis points. And lastly, you are likely aware of the increase in CBIZ share price over the past 12 months with a closing price of $78.50 at March 31 this year, this is up from $49.49 a year ago and is up from $62.59 at year end 2023.

另一項是自費醫療保健計劃費用。我們之前也曾評論過，這項非經營項目可能會導致報告結果的短期波動。今年第一季較高的成本使利潤率下降了 40 個基點。最後，您可能注意到 CBIZ 股價在過去 12 個月中有所上漲，今年 3 月 31 日的收盤價為 78.50 美元，高於一年前的 49.49 美元，也高於 2023 年底的 62.59 美元。

This, of course, is good news. The GAAP accounting, however, causes an increase in reported costs with our phantom share plan in place as an element of our compensation approach that is designed to more closely align employee interest, the shareholders reporting this compensation-related obligation at a fair value impacted margin by 20 basis points.

這當然是個好消息。然而，GAAP 會計導致報告成本增加，我們的虛擬股票計劃作為我們薪酬方法的一個要素，旨在更緊密地協調員工利益，股東以公允價值影響的利潤率報告與薪酬相關的義務20個基點。

These three items impacted adjusted earnings per share in the first quarter by approximately $0.08 a share. The nature of these non-operating items is somewhat unpredictable, so it is unclear how the balance of the year will unfold for these items. But incurring these higher first quarter costs does not change our positive full-year outlook for 2024.

這三項對第一季調整後每股收益的影響約為每股 0.08 美元。這些非經營項目的性質有些難以預測，因此尚不清楚這些項目的年度餘額將如何展開。但第一季成本上升並不會改變我們對 2024 年全年的積極展望。

So as you look at first quarter results, I think the takeaway is that the health of the business is very strong. Performances in line with our expectations and additional consideration comparing first quarter results this year to last year is that with first quarter adjusted earnings per share up nearly 24% a year ago, this year, we are comparing against a very strong first quarter a year ago.

因此，當您查看第一季的業績時，我認為要點是業務的健康狀況非常強勁。業績符合我們的預期，並將今年第一季業績與去年相比的額外考慮因素是，今年第一季度調整後每股收益比一年前增長近24%，今年我們與一年前非常強勁的第一季進行比較。

During the first quarter this year, we completed two acquisitions, EBK and CompuData. We are extremely pleased to have both of these teams on board this year. Initial results are good, and they are performing in line with our expectations. With a view towards presenting meaningful comparable information and eliminating the impact of one-time acquisition-related expenses and other nonoperating-related gains and losses; earnings per share for the first quarter this year on an adjusted basis was $1.54, up 5.5% compared with adjusted earnings per share last year of $1.46. Adjusted EBITDA, considering the same adjustments was $118.8 million for the three months this year.

今年第一季度，我們完成了兩項收購：EBK 和 CompuData。我們非常高興今年有這兩個團隊加入。初步結果良好，其表現符合我們的預期。為了提供有意義的可比較資訊並消除一次性收購相關費用和其他非營運相關損益的影響；今年第一季調整後每股收益為1.54美元，比去年調整後每股收益1.46美元成長5.5%。考慮到今年三個月的相同調整，調整後 EBITDA 為 1.188 億美元。

A table reconciling reported GAAP numbers to these adjusted earnings per share and adjusted EBITDA numbers is included in the earnings release issued this morning. For the quarter, we reported an increase in interest expense of $870,000 with an earnings per share impact of approximately $0.01 a share. Considering the steady rise in borrowing rates throughout 2023, we expected a slight headwind with interest expense in the first half this year.

今天早上發布的收益報告中包含了一份將報告的 GAAP 數據與調整後的每股收益和調整後的 EBITDA 數據進行核對的表格。我們報告本季利息支出增加了 87 萬美元，對每股收益的影響約為 0.01 美元。考慮到 2023 年全年借款利率穩定上升，我們預計今年上半年利息支出將出現輕微阻力。

As always, details of the GAAP accounting for gains and losses in our nonqualified deferred compensation plan are outlined in the release. As you look at both gross margin and operating income comparisons, the impact of the gains and losses should be excluded for a meaningful comparison. And as a reminder, pretax income is not impacted by this account.

與往常一樣，新聞稿中概述了我們的非合格遞延薪酬計劃中損益的 GAAP 會計細節。當您比較毛利率和營業收入時，應排除損益的影響才能進行有意義的比較。提醒一下，稅前收入不受此帳戶的影響。

Now turning to cash flow and balance sheet items. We experienced our normal seasonal use of cash in the first quarter. On March 31 this year, the balance outstanding on the $600 million unsecured financing facility was $438 million with approximately $148 million of unused capacity. With a leverage ratio of approximately 1.96 times adjusted EBITDA, this provides plenty of capacity to continue with strategic acquisitions and also provides flexibility to address share repurchases.

現在轉向現金流量和資產負債表項目。我們在第一季經歷了正常的季節性現金使用。截至今年 3 月 31 日，6 億美元無擔保融資額度的未償餘額為 4.38 億美元，其中未使用產能約為 1.48 億美元。槓桿率約為調整後 EBITDA 的 1.96 倍，這為繼續策略性收購提供了充足的能力，並為解決股票回購提供了靈活性。

In the first quarter of this year, we completed two acquisitions. We use approximately $55 million for these acquisitions, including earn-out payments on previously closed transactions. For earn-out payments for acquisitions previously closed, we expect to use approximately $25.5 million over the remainder of this year, approximately $39.4 million in 2025, $15.3 million in 2026, and approximately $6.8 million in 2027 for these estimated earn-out payments.

今年第一季度，我們完成了兩項收購。我們使用大約 5500 萬美元用於這些收購，包括先前完成的交易的收益付款。對於先前完成的收購的收益支付，我們預計在今年剩餘時間內將使用約 2550 萬美元、2025 年約 3940 萬美元、2026 年 1530 萬美元、2027 年約 680 萬美元用於這些估計的收益付款。

Deploy capital for strategic acquisition purposes continues to be our highest priority. Since the end of 2019, we have closed 22 transactions, and we have deployed approximately $444 million of capital for acquisition purposes, including the earn-out payments over that time. Beyond using capital for acquisitions, we have the flexibility to use capital for share repurchases. With approximately $9.4 million shares repurchased since the end of 2019 or about 17% of shares outstanding since that time, we have used approximately 30 -- $342 million of capital for share repurchases since that time.

出於策略性收購目的部署資本仍然是我們的首要任務。自 2019 年底以來，我們已完成 22 筆交易，並已部署約 4.44 億美元的資本用於收購目的，其中包括這段時間內的獲利付款。除了使用資本進行收購之外，我們還可以靈活地使用資本進行股票回購。自2019 年底以來，我們回購了約940 萬美元的股票，約佔自那時以來已發行股票的17%，自那時以來，我們已使用約30 至3.42 億美元的資本用於股票回購。

Days sales outstanding on March 31 this year was 101 days compared with 94 days a year ago. The increase driven in part by extended California tax filing deadline last year plus tax consulting work recorded later in '23 and into the first quarter of this year. The DSOs at the end of the first quarter reflect the seasonal nature of our core tax and accounting business. Bad debt expense for the three months was 11 basis points of revenue compared to 10 basis points a year ago.

今年 3 月 31 日的應收帳款天數為 101 天，去年同期為 94 天。這一增長的部分原因是去年加州納稅申報截止日期延長，加上 23 年晚些時候和今年第一季記錄的稅務諮詢工作。第一季末的 DSO 反映了我們核心稅務和會計業務的季節性特徵。這三個月的壞帳支出佔收入的 11 個基點，而一年前為 10 個基點。

Depreciation and amortization expense for the first quarter was $9.5 million compared with $8.6 million a year ago. For the full year, we expect depreciation and amortization at approximately $36.5 million this year compared with approximately $36 million last year.

第一季的折舊和攤銷費用為 950 萬美元，而去年同期為 860 萬美元。我們預計今年全年的折舊和攤提約為 3,650 萬美元，而去年約為 3,600 萬美元。

Amortization expense is primarily driven by acquisition activity and the amortization of intangible assets. For those of you who want to make adjustments for this, for the three months, amortization expense was $5.9 million and for the full year, amortization may be approximately $24 million this year. Capital spending for the first quarter was $5.1 million and this included $1.7 million of capital items associated with our new headquarter mode that occurred in the fourth quarter last year.

攤銷費用主要由收購活動和無形資產攤銷驅動。對於想要對此進行調整的人來說，三個月的攤銷費用為 590 萬美元，全年的攤銷費用可能約為 2,400 萬美元。第一季的資本支出為 510 萬美元，其中包括與去年第四季發生的新總部模式相關的 170 萬美元資本項目。

For the full year, we expect capital spending within a range of $12 million to $15 million. The effective tax rate for the three months this year was 26.1%, which is slightly lower than 26.5% from a year ago. The quarterly effective tax rate can be volatile for a number of reasons. And we continue to expect the full year effective tax rate for 2024 at approximately 28%.

我們預計全年資本支出在 1200 萬美元至 1500 萬美元之間。今年前三個月的有效稅率為26.1%，略低於去年同期的26.5%。由於多種原因，季度有效稅率可能會波動。我們繼續預計 2024 年全年有效稅率約為 28%。

The recurring and essential nature of many of our services provide stability through economic cycles. At this point, as we look at employment driven metrics within our benefits and in our payroll businesses, we are seeing continued signs of steady employment within our clients. If we experienced pressure on revenue growth, there are a number of variable items within our cost structure and we can take measures to mitigate the impact. We're pleased with the performance of business in the first quarter of this year, and we continue to have a very positive outlook for the full year 2024.

我們許多服務的重複性和必要性在整個經濟週期中提供了穩定性。此時，當我們審視我們的福利和薪資業務中的就業驅動指標時，我們看到客戶內部就業穩定的持續跡象。如果我們遇到收入成長壓力，我們的成本結構中有許多可變項目，我們可以採取措施減輕影響。我們對今年第一季的業務表現感到滿意，並且對 2024 年全年的前景仍然非常樂觀。

So to reaffirm our full-year guidance, we will say the following. We expect total revenue to increase within a range of 7% to 9% for the year. GAAP reported earnings per share is expected to increase within a range of 13% to 15% over the $2.39 reported in 2023. On an adjusted basis, we expect 2024 adjusted earnings per share to increase within a range of 12% to 14% over the adjusted earnings per share of $2.41 that was reported in 2023.

因此，為了重申我們的全年指導，我們將說以下內容。我們預計今年總收入將成長7%至9%。 GAAP 報告的每股盈餘預計將比2023 年報告的2.39 美元增加13% 至15%。 %。

The effective tax rate for the full year of '24 is expected at approximately 28%. This rate can be impacted either up or down by a number of unpredictable factors. And lastly, the fully diluted weighted average share count is expected to within a range of $50 million to $50.5 million shares for the full year of 2024.

24 年全年的有效稅率預計約為 28%。該比率可能會受到許多不可預測因素的影響。最後，預計 2024 年全年完全稀釋加權平均股數將在 5,000 萬美元至 5,050 萬美元之間。

So with these comments, I'll conclude and I'll turn it back over to Jerry.

因此，透過這些評論，我將得出結論，並將其轉回給傑瑞。

Thank you, Ware.

謝謝你，韋爾。

Before we move on to Q&A, I'd like to provide a brief update on our M&A activity and our results for the year. M&A continues to be a key part of our growth strategy as we build on our reputation as an acquirer of choice, given the volume and quality of transactions that we've completed in recent years. We began this year with a healthy pipeline of M&A opportunities and have already completed two acquisitions.

在我們進行問答之前，我想先簡單介紹一下我們的併購活動和今年的業績。考慮到我們近年來完成的交易數量和質量，併購仍然是我們成長策略的關鍵部分，因為我們建立了作為首選收購者的聲譽。今年伊始，我們就有了一系列健康的併購機會，已經完成了兩項收購。

As I outlined in our last earnings call, in February, we acquired Erickson, Brown & Kloster or EBK, a CPA firm located in Colorado Springs, Colorado. EBK's wide range of accounting tax services complements our growing Denver-based financial services practice and provides us with broader representation across the state. Last month, we were also pleased to welcome CompuData, a premier technology solution provider targeting middle market organizations.

正如我在上一次財報電話會議中所述，2 月份，我們收購了 Erickson, Brown & Kloster 或 EBK，這是一家位於科羅拉多州科羅拉多斯普林斯的註冊會計師事務所。 EBK 廣泛的會計稅務服務補充了我們不斷發展的丹佛金融服務實踐，並為我們在全州提供了更廣泛的代表性。上個月，我們也很高興地迎來了 CompuData，這是一個針對中間市場組織的一流技術解決方案提供者。

Headquartered in Philadelphia, CompuData specializes in cloud computing, accounting ERP software, managed IT and security services. These services are in high demand and our essential solutions that our clients rely on to operate and grow their businesses. CompuData brings deep technical expertise and knowledge with the key industries that we serve. CompuData is another example of how we're using M&A to strengthen and build our service offerings that are in high demand by our clients. We welcome both EBK and CompuData teams to CBIZ.

CompuData 總部位於費城，專注於雲端運算、會計 ERP 軟體、託管 IT 和安全服務。這些服務需求量很大，我們的客戶依賴我們的基本解決方案來營運和發展業務。 CompuData 為我們所服務的關鍵產業帶來了深厚的技術專業知識和知識。 CompuData 是我們如何利用併購來加強和打造顧客需求旺盛的服務產品的另一個例子。我們歡迎 EBK 和 CompuData 團隊來到 CBIZ。

With that said, we'll move on to Q&A.

話雖如此，我們將繼續進行問答。

(Operator instructions)

（操作員說明）

Chris Moore, CJS Securities.

克里斯摩爾，CJS 證券。

Hey, good morning, guys. Congrats on another strong quarter.

嘿，早上好，夥計們。祝賀又一個強勁的季度。

Maybe Jerry, maybe just continue a little bit on the CompuData conversation. It looks very interesting. Definitely outside the normal M&A focus. Just trying to understand is there a certain subset of CBIZ customers that this is particularly relevant to one segment more than others? Just maybe just trying to understand a little bit better.

也許傑瑞，也許只是繼續討論一下 CompuData 的對話。看起來很有趣。絕對超出了正常的併購重點。只是想了解是否存在某一特定 CBIZ 客戶子集，這與某個細分市場比其他細分市場尤其相關？也許只是想更好地理解一點。

Yeah. Thanks, Chris.

是的。謝謝，克里斯。

There is in fact, and we tried to put this for each acquisition we make, we tried to put the rationale, the strategic rationale in the press release, but in this instance, it was really building out our advisory services and more specifically within our private equity practice. As we go in and help clients within that advisory practice, we've more and more have been asked -- often asked to help them with their systems. We go in and today even before CompuData, we go in and we assess their systems, a little bit assess their reporting, and help them in a number of different areas. But this just broadens that service offering and allows us to meet the demand or the requests that we're receiving from clients in that area of the business.

事實上，我們試圖將這一點放在我們進行的每一次收購中，我們試圖將基本原理、策略原則放在新聞稿中，但在這種情況下，它實際上是在建立我們的諮詢服務，更具體地說是在我們的諮詢服務中。當我們進入諮詢實踐並幫助客戶時，越來越多的客戶要求我們幫助他們改進他們的系統。今天，甚至在 CompuData 之前，我們就進去評估他們的系統，稍微評估他們的報告，並在許多不同的領域為他們提供幫助。但這只是擴大了服務範圍，並使我們能夠滿足該業務領域客戶的需求或要求。

Got it. Very helpful.

知道了。很有幫助。

Maybe I'll just stay on M&A for one second. The March plan of acquisitions a little more than two years ago. Is it fair to say that synergies and cross-selling from there have pretty much been fully realized? Or is that still ongoing benefits from there?

也許我會在併購上停留一秒鐘。兩年多前的三月收購計畫。可以說，那裡的協同效應和交叉銷售幾乎已經完全實現了嗎？或者說這仍然是持續的好處嗎？

Yeah, I would say ongoing, Chris. So just a good way to understand this is that the first year is we don't get a lot of synergies or a lot of cross-serving because there is a considerable amount of change that comes as we migrate from their systems onto our systems. And there is a change in processes and operating systems, et cetera.

是的，我會說正在進行中，克里斯。因此，理解這一點的一個好方法是，第一年我們沒有得到很多協同效應或很多交叉服務，因為當我們從他們的系統遷移到我們的系統時，會發生大量的變化。流程和作業系統等也發生了變化。

So first year, very little that. We are now starting to see them now that they are, I think, fully onto all of our systems. Their operating margin should improve. They're leaning into our pricing initiatives. We have seen some cross-serving coming out of that organization, although I would expect that that would continue to even accelerate from this point forward. So I think the year two and beyond is where we really start to see the growth in the revenue that comes out of the combination of these two organizations and margin expansion.

所以第一年，很少。我認為，我們現在開始看到它們，因為它們已經完全進入我們所有的系統。他們的營業利潤率應該會有所改善。他們傾向於我們的定價舉措。我們已經看到該組織出現了一些交叉服務，儘管我預計從現在開始這種情況會繼續加速。因此，我認為第二年及以後我們才真正開始看到這兩個組織的合併和利潤率擴張所帶來的收入成長。

Got it. I appreciate that. Almost there.

知道了。我很感激。差不多了。

Still much uncertainty in terms of what the Fed's going to do at this point in time, anywhere from small decrease to a small increase in '24. From where you sit today, would a 50 basis points' decrease or increase in, say, early Q3, would that have much of an impact on the way you're viewing the year?

就聯準會此時將採取的行動而言，仍存在很大的不確定性，從 24 年的小幅下降到小幅上升。從您今天的立場來看，在第三季初，匯率會減少或增加 50 個基點，這會對您對今年的看法產生很大影響嗎？

No, I don't think so. And when you were asking the question I was actually thinking about our client sentiments, right? And what we're hearing from our clients is that what they're really looking for is a more stable environment. And I think that we're seeing that this year. I think we started to see that at the end of last year and we're seeing it now.

不，我不這麼認為。當你問這個問題時，我實際上是在考慮我們客戶的感受，對吧？我們從客戶那裡聽到的是，他們真正尋求的是一個更穩定的環境。我認為今年我們會看到這一點。我想我們從去年年底就開始看到這一點，現在我們也看到了。

So a 50-basis-point swing one way or another, I don't think will really change that sentiment. And as long as there is a fairly level playing field and they understand the climate, I think that gives our clients the confidence to continue to invest and grow their businesses.

因此，無論怎樣，50個基點的波動，我認為不會真正改變這種情緒。只要有一個公平的競爭環境並且他們了解氣候，我認為這會讓我們的客戶有信心繼續投資和發展業務。

Got it. And one last one, maybe for Ware.

知道了。最後一張，也許是給韋爾的。

Interest expense had a, I think, roughly $0.17 negative impact on fiscal '23 year over year? And just trying to understand a little better how you're viewing it in '24 versus 23?

我認為，利息支出對 23 財年的負面影響約為 0.17 美元？只是想更了解您如何看待 24 年和 23 年的情況？

Yeah. Thanks, Chris.

是的。謝謝，克里斯。

Yeah, the vast majority of the increase in rates would have been felt year over year last year. We still see a small residual impact in the first half this year. Just because when you compared to first half last year, there was just a general rise last year, but not a spike like we saw '23 versus '22. So when I commented about a $0.01 impact in Q1, there may also be a small impact in Q2, but it's really a first half comparison. And that's baked into our expectations of course.

是的，絕大多數利率的成長都是去年較去年同期帶來的。今年上半年我們仍然看到了較小的殘餘影響。只是因為與去年上半年相比，去年只是總體上升，但沒有像我們在“23”與“22”中看到的那樣出現峰值。因此，當我評論第一季 0.01 美元的影響時，第二季可能也會有很小的影響，但這實際上是上半年的比較。當然，這已經融入了我們的期望。

Got it. I appreciate it, guys. I'll leave it there.

知道了。我很感激，夥計們。我會把它留在那裡。

Thanks, Chris.

謝謝，克里斯。

Andrew Nicholas, William Blair.

安德魯尼古拉斯、威廉布萊爾。

I wanted to start with the M&A pipeline. Jerry, you spoke to that at the end of your prepared remarks, but just a little bit more color on how that's shaping up. Maybe some commentary on deal multiples. And then also within that, is there any way to talk about the pipeline or your interest here, even your capacity to do tuck-ins versus maybe even deals that are a little bit larger?

我想從併購管道開始。傑瑞，你在準備好的發言結束時談到了這一點，但只是對事情的進展進行了更多的闡述。也許對交易倍數有一些評論。然後，在此範圍內，是否有任何方式可以談論管道或您在這裡的興趣，甚至您進行折價交易的能力，甚至可能是規模稍大一點的交易？

Yeah. Thanks, Andrew.

是的。謝謝，安德魯。

Here's what I would say about our pipeline is it's really not changed from the beginning of the year. And what we said at the beginning of the year is that we were pleased with that pipeline, both the number of transactions and the size of the transactions that were in that pipeline. As always, deals come and go and some are larger and some are smaller. But pretty pleased, as evidenced by the fact that we've already closed two transactions so far this year.

關於我們的管道，我想說的是，它與今年年初相比確實沒有改變。我們在年初所說的是，我們對這條管道感到滿意，無論是交易數量還是管道中的交易規模。一如既往，交易來來去去，有些規模較大，有些規模較小。但我們非常高興，今年到目前為止我們已經完成了兩筆交易。

As to multiples, again answer consistent with what we've said over the past 24 months, which is below the large platform transactions, we haven't seen multiples really moving much. There is a considerable amount of activity in the accounting space with private equity firms. I think over time that will impact multiples, but we haven't seen material shifts to date with the exception of the large platform transactions. There were two -- in the first quarter, in February, there was the announcement that Baker Tilly was accepting an investment from private equity. And then in March, Grant Thornton went the same direction. Those trade at significantly higher multiples than the typical transaction than we would normally engage in. So that's what's happening on the multiple side.

至於市盈率，再次回答與我們過去 24 個月所說的一致，低於大型平台交易，我們沒有看到市盈率真正發生太大變化。私募股權公司在會計領域進行了大量活動。我認為隨著時間的推移，這將影響市盈率，但到目前為止，除了大型平台交易之外，我們還沒有看到重大變化。有兩次——在二月的第一季度，貝克·天職 (Baker Tilly) 宣布接受私募股權投資。然後在三月，均富會計師事務所也採取了同樣的方向。這些交易的倍數明顯高於我們通常參與的典型交易。

As far as the tuck-ins versus more platform transactions, look, we're always interested in both. Tuck-ins for us means that we already have a significant presence in the market and that tuck-in acquisition allows us to expand our talent pool or expand a line of service that might be in high demand and you'll see those things from time to time. We would not do a small transaction as a standalone transaction in a new market, but from time to time, we have the opportunity to add quality team members in an existing market where we have scale.

就折騰與更多平台交易而言，我們總是對兩者感興趣。對我們來說，Tuck-ins 意味著我們已經在市場上佔有重要地位，而 Tuck-ins 收購使我們能夠擴大我們的人才庫或擴大可能需求量很大的服務範圍，您會隨時看到這些事情到時間了。我們不會在新市場中將小額交易作為獨立交易進行，但我們有時有機會在我們有規模的現有市場中增加優質團隊成員。

As far as larger transactions are concerned, well, I would say, CompuData, even though recall the revenue call it $20 million, $25 million, would fit in those categories. I mean it was a service line that was in high demand by our client. Great team. They had worked with our PE team and our Philadelphia-based team in the past. So good cultural alignment there. So checked all the boxes, we would certainly continue to be interested in those types of transactions. And then when and if the right really sizable transaction as we've always said, we will continue to evaluate those based on a cultural fit, strategic fit, and our ability to integrate and onboard those acquisitions. So yes to all the above I guess I would say.

就較大的交易而言，好吧，我想說，CompuData，即使回想一下收入為 2000 萬美元、2500 萬美元，也適合這些類別。我的意思是，這是我們的客戶需求很大的服務線。很棒的團隊。他們過去曾與我們的運動團隊和費城團隊合作過。那裡有很好的文化契合。因此，選中所有複選框，我們肯定會繼續對這些類型的交易感興趣。然後，如果真的像我們一直所說的那樣進行大規模交易，我們將繼續根據文化契合度、策略契合度以及我們整合和參與這些收購的能力來評估這些交易。所以我想我會對以上所有內容說是的。

No, that's really helpful. I appreciate thorough response.

不，這真的很有幫助。我很欣賞徹底的回應。

Maybe just to follow-up on the M&A front, before I ask one more is when you think about runway for deals with private equity now [encroaching] on the ecosystem, do you envision multiples moving in certain areas or sub-practices within the accounting services market more than others.

也許只是為了跟進併購方面的情況，在我再問一個問題之前，當您考慮現在[侵入]生態系統的私募股權交易的跑道時，您是否設想在會計中的某些領域或子實踐中進行倍數轉移服務市場比其他市場更大。

And maybe another way to ask that question is, do you have any indication of those private equity backed players or really any competitors asking for your accounting and tax over advisory over cyber or in some other order? Or is it pretty uniform and similar to your own strategic priorities on that front?

也許問這個問題的另一種方式是，您是否有任何跡象表明那些私募股權支持的參與者或實際上有任何競爭對手要求您透過網路或其他方式提供會計和稅務諮詢？或者它是否非常統一並且與您自己在這方面的戰略重點相似？

Yeah, I'm guessing a little bit in my response there, right? I'm speculating a little bit, but certainly where we see the activity today is in very traditional core accounting tax practices. That's where most of the activity has been. I suspect, over time that they will also be more active in the advisory space. There are some private equity firms active in that space, but they're not to date, the same firms that are interested in core accounting.

是的，我在回答中有點猜測，對吧？我有一點猜測，但我們今天看到的活動肯定是在非常傳統的核心會計稅務實務中。那是大部分活動發生的地方。我懷疑，隨著時間的推移，他們也會在諮詢領域更加活躍。有一些私募股權公司活躍在這一領域，但迄今為止，它們並不是對核心會計感興趣的公司。

So we do have -- a full disclosure. We do have PE competition in both of those spaces, but they're not the same firms. I think I suspect over time, once they establish a more of a platform and more scale in core accounting that we will see some of those firms also in the advisory space, although we really haven't seen it to date.

所以我們確實有——完整的披露。我們確實在這兩個領域都有私募股權競爭，但它們不是同一家公司。我想我懷疑隨著時間的推移，一旦他們在核心會計方面建立了更多的平台和更大的規模，我們就會看到其中一些公司也進入諮詢領域，儘管迄今為止我們還沒有看到。

Makes perfect sense.

很有道理。

And then maybe just one more for me is it sounds like you're pretty optimistic or at least your clients are optimistic on the advisory services business in particular. Can you talk a little bit more about M&A related activity and maybe how that ramped over the course of the quarter because it does feel like to me that that's incrementally better than the last time we spoke. And then relatedly, if you could just recap what the margin profile is of those types of businesses relative to the rest of the financial services segment? Thank you.

對我來說，也許還有一個問題是，聽起來您非常樂觀，或者至少您的客戶對諮詢服務業務特別樂觀。您能否多談談併購相關活動，以及該活動在本季的成長情況，因為我確實覺得這比我們上次談話時的情況要好得多。然後，與此相關的是，您能否回顧一下這些類型的企業相對於金融服務領域其他業務的利潤狀況是怎樣的？謝謝。

Yeah. So Andrew, what I would say, as far as the advisory type of practices are that the client demand tends to be within that advisory space. So as I mentioned on, well, I'll give you two examples. Last year, we announced a pivot point that the cyber practice that demand is within -- that practice is within our risk and advisory practice. We had some capacity there. We were hearing high demand from our clients. So pivot point joined us another great organization. We're really enthusiastic about what we'll be able to do with that to meet the demands but it's more within the advisory client as opposed to a broad-based all see this clients, although candidly, I think there should be higher demand there.

是的。安德魯，我想說的是，就諮詢類型的實踐而言，客戶的需求往往在諮詢領域內。正如我之前提到的，我將舉出兩個例子。去年，我們宣布了一個關鍵點，即所需的網路實踐屬於我們的風險和諮詢實踐。我們在那裡有一些能力。我們聽到客戶的高要求。因此，Pivot Point 加入了我們另一個偉大的組織。我們真的很熱衷於我們能夠利用這一點來滿足需求，但更多的是在諮詢客戶範圍內，而不是基礎廣泛的所有客戶，儘管坦白說，我認為那裡應該有更高的需求。

And so we're pursuing that as well. But the demand that we're seeing for those advisory services are within really specific clients. Our shift to CompuData, as I mentioned in my response to Chris's question that is really a demand that we're hearing within our private equity practice. So we're in there, obviously, helping them with their financial needs. And there's a lot of systems alignment there and correlation there. So we oftentimes get asked about helping them with their systems, and that was really the strategic fit of CompuData.

所以我們也在追求這一點。但我們看到這些諮詢服務的需求來自於真正特定的客戶。正如我在回答 Chris 問題時提到的，我們轉向 CompuData，這確實是我們在私募股權實踐中聽到的要求。顯然，我們在那裡幫助他們滿足財務需求。那裡有很多系統調整和關聯。因此，我們常被問到如何幫助他們開發系統，而這正是 CompuData 的策略契合點。

And then there was another question there that I lost. Oh, the margin (multiple speakers) --

然後還有一個問題我輸了。哦，邊緣（多個發言者）--

The margin (multiple speakers) --

邊距（多位發言者）--

Hi, Andrew.

嗨，安德魯。

Yeah, the margins and the advisory business are higher generally speaking than the core tax and accounting. So if core tax and accounting is in the mid to upper teens on an annual basis, we might expect 400, 500 basis points higher on the advisory side.

是的，一般來說，利潤率和諮詢業務比核心稅務和會計業務要高。因此，如果核心稅務和會計每年處於中十幾位，我們可能會預期諮詢方面會高出 400 到 500 個基點。

Thanks so much.

非常感謝。

Marc Riddick, Sidoti.

馬克·里迪克，西多蒂。

So thanks for all the detail that you've already provided. One of the things I was curious about, maybe you can share some thoughts as to what you're seeing with your client industry verticals? And maybe if there are any particular call-outs or any areas that maybe have been of interest either on the positive or negative side? And then maybe if you could share thoughts similarly from a geographic footprint perspective, whether or not we're seeing any regions perform a little stronger than others?

感謝您提供的所有詳細資訊。我很好奇的一件事是，也許您可以分享一些關於您在客戶行業垂直領域所看到的想法？也許是否有任何特定的標註或任何可能令人感興趣的正面或負面方面？然後，也許您可以從地理足跡的角度分享類似的想法，我們是否看到任何地區的表現比其他地區更強一些？

Yeah, hey, Mark. It's Jerry.

是的，嘿，馬克。是傑瑞。

As we've said, again one of the very favorable characteristics of our business is that we're not overly concentrated in one industry. We're obviously not overly concentrated in any single geography. So those -- oftentimes when you see impact one way or another, it might be in the tech center -- sector or the energy sector, the healthcare sector. We don't have those high concentration.

正如我們所說，我們業務的一個非常有利的特徵是我們沒有過度集中於一個行業。顯然，我們並沒有過度集中於任何單一地理區域。因此，通常當你以某種方式看到影響時，它可能是在技術中心、能源部門、醫療保健部門。我們沒有那麼高的濃度。

So I would say across our broad base client in the industries where we're hearing a, I think, a reasonable level of optimism as we would generally see among middle market clients as to the environment that they're in today and the prospects for the rest of the year. We're not seeing a really different sentiment in one industry over the other.

因此，我想說的是，在我們廣泛的行業客戶中，我認為我們聽到了合理程度的樂觀情緒，就像我們在中間市場客戶中普遍看到的那樣，對他們今天所處的環境和前景感到樂觀。我們沒有看到一個行業與另一個行業有真正不同的情緒。

I guess if I had to call one out, I think we'd call out construction. I think with rising -- with the interest rates where they are today and cost of materials and a number of other factors, maybe the construction industry might be one that's a little bit more [tepid] at this point. But short of that I wouldn't see -- we're not hearing anything from our clients that would be favorable or unfavorable in industry.

我想如果我必須召集一個，我想我們會召集建設。我認為，隨著當前利率的上升、材料成本和許多其他因素的影響，建築業可能會在這一點上變得更加[不溫不火]。但除此之外，我不會看到——我們沒有從客戶那裡聽到任何對產業有利或不利的消息。

The second thing is the geography, and I would say the same thing there. Generally seeing nice growth and nice strength across all geographies.

第二件事是地理，我也會在那裡說同樣的事情。總的來說，所有地區都看到了良好的成長和良好的實力。

Excellent. And then could you maybe spend a little time -- maybe what you might be looking at as far as at least maybe between now and the end of the year or just generally near-term investments internally that you might be looking at or any area or any things that you'd like to highlight as to reinvestment for future growth opportunities?

出色的。然後你能不能花一點時間——也許你可能會關注至少從現在到年底之間的事情，或者只是你可能正在關注的內部短期投資或任何領域或關於未來成長機會的再投資，您有什麼想強調的嗎？

Yeah. So I don't think anything outside the ordinary. I mean, we always have a long list of investments that we're considering to continue to make the business more efficient and to continue to bring differentiated products and solutions to the client and to accelerate growth. So on the growth acceleration, obviously, we've talked for years about our investment in producers.

是的。所以我不認為有什麼不尋常的事。我的意思是，我們總是有一長串的投資清單，我們正在考慮繼續提高業務效率，繼續為客戶帶來差異化的產品和解決方案並加速成長。因此，顯然，在成長加速方面，我們多年來一直在談論對生產商的投資。

We continue to make those investments. We continue to make significant investments in the tools that will make us more efficient, including generative AI and blockchain and those types of tools that are generally embedded in third-party products. But we have an innovation group that's focused on understanding what those products are and how they may impact the business.

我們將繼續進行這些投資。我們繼續對能夠提高我們效率的工具進行大量投資，包括生成式人工智慧和區塊鏈以及通常嵌入第三方產品中的那些類型的工具。但我們有一個創新團隊，專注於了解這些產品是什麼以及它們如何影響業務。

So there is a list of investments. We continue to make those. We have make those. We continue to make those throughout the year. But I don't think anything beyond what you're accustomed to within our models, within our financial performance.

所以有一個投資清單。我們繼續做這些。我們已經做了那些。我們全年都會繼續生產這些產品。但我認為沒有什麼超出你在我們的模型和我們的財務表現中所習慣的範圍。

Yeah, Mark, this is Ware.

是的，馬克，這是韋爾。

Just from an operating standpoint, we talk about these from time to time, just the increase in, what we'll call investment in hiring new producers just because of the ramp up time, it gets considered doing an investment for the first 12 to 24 months. And so that has had a choppy impact on our benefits and insurance margins as we've hired more or less from time to time.

僅從營運角度來看，我們時不時地談論這些，只是因為增加時間而增加了我們所說的僱用新生產商的投資，因此考慮對前 12 到 24 年進行投資幾個月。因此，這對我們的福利和保險利潤產生了不穩定的影響，因為我們不時或多或少地僱用了一些人。

You're seeing right now in the first quarter, the wrap around impact on margins with our benefits and insurance group with hires that were done in '23 that now impact first quarter of '24. We also are increasing resources in our National Tax Office, and that's a revenue generating resource. So again, there might be a timing difference between the hiring and the investment versus the revenue. So we view that as an investment.

現在您可以在第一季看到，我們的福利和保險集團在 23 年進行的招聘對利潤率產生了全面影響，現在影響了 24 年第一季。我們還增加了國家稅務局的資源，這是一種創收資源。同樣，招聘和投資與收入之間可能存在時間差異。所以我們將其視為一項投資。

And then thirdly, we're beefing up our offshoring capabilities and capacity. So we've gone from 30 to 40 to 50 and on upwards in terms of offshore resources. They're highly seasonal, but they're committed resources for us throughout the year and beyond tax and accounting. We also use them for some of the consulting services throughout the year as well. So those are three areas where as with any management team, we're weighing the timing of those investments against the payback. And those are three examples. What we're doing that are tangible examples.

第三，我們正在增強我們的離岸外包能力。因此，就離岸資源而言，我們已經從 30 個增加到 40 個，再到 50 個，並且還在增加。它們具有很強的季節性，但它們為我們全年提供了稅務和會計以外的資源。我們也全年使用它們提供一些諮詢服務。因此，與任何管理團隊一樣，在這三個領域，我們正在權衡這些投資的時機和回報。這就是三個例子。我們所做的就是具體的例子。

This concludes our question-and-answer session. I would like to turn the conference back over to Jerry Grisko for any closing remarks.

我們的問答環節到此結束。我想將會議轉回傑瑞·格里斯科（Jerry Grisko）發表閉幕詞。

Thank you, everybody.

謝謝大家。

Before we wrap up today, I want to take an opportunity as we always do to thank our shareholders and our analysts for your continued support of our team and of the company. I also want to take this opportunity to recognize and thank our team.

在今天結束之前，我想藉此機會一如既往地感謝我們的股東和分析師對我們團隊和公司的持續支持。我也想藉此機會認可並感謝我們的團隊。

As we started today's call, and we outlined the great start that we've had to the year. I want to recognize that we're just wrapping up another very busy tax season within our accounting and tax group with many team members across the company working very long hours to go above and beyond for our clients and our team. Our team is obviously what makes our results possible. And I continue to be inspired and impressed by our team's dedication to our clients, their commitment to supporting each other, and to driving growth within the company.

當我們開始今天的電話會議時，我們概述了今年的良好開端。我想認識到，我們的會計和稅務團隊剛剛結束了另一個非常繁忙的納稅季節，公司的許多團隊成員都在長時間工作，為我們的客戶和團隊提供超越的服務。顯然，我們的團隊使我們的成果成為可能。我們的團隊對客戶的奉獻精神、他們對彼此支持以及推動公司內部發展的承諾，繼續給我帶來啟發和留下深刻的印象。

So for our team, I want to say thank you for your support, your exceptional efforts, and your focus on what we can achieve together by harnessing the power of one CBIZ.

因此，對於我們的團隊，我想對你們的支持、你們的傑出努力以及你們對我們透過利用一個CBIZ的力量共同實現目標的關注表示感謝。

Thank you and enjoy your day.

謝謝您，祝您有個愉快的一天。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。