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EXHIBIT 99.1
[CBIZ LOGO] CENTURY BUSINESS SERVICES, INC. PRESS RELEASE
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Business Services for Business America.(TM)
FOR IMMEDIATE RELEASE CONTACT: DAN CLARK
Vice President, Corporate
Relations
CLEVELAND, OHIO
(216) 447-9000
CENTURY BUSINESS SERVICES, INC., REORGANIZES AND
STRENGTHENS ITS TOP MANAGEMENT TEAM
REORGANIZATION TO EXPEDITE INTERNAL GROWTH OF
PROFESSIONAL SERVICES AND INCREASE PRODUCT DISTRIBUTION
Cleveland, Ohio (December 14, 1998)--Century Business Services, Inc.
(Nasdaq:CBIZ) ("Century"), the nation's fastest emerging outsourced business
services company, today announced the reorganization of its top management team
to accelerate its internal growth and to strengthen the integration of its
services network, taking the Company to the next level.
In less than two years, Century Business Services has been transformed from a
niche market insurance company in Cleveland, Ohio, to a leading national
provider of professional business services. From $35.8 million in revenues for
1996, primarily in its niche market insurance business, Century has built a
national platform of professional services and products approaching $400 million
in revenue from recurring professional fees and commissions. A national provider
of accounting, tax and consulting services, as well as benefits administration,
financial and insurance products to small and mid-sized businesses across the
United States, Century is currently operating at a built-in internal growth rate
of approximately 15% and high profit margins. The original niche market
insurance company, which accounted for 96% of 1996 Company revenue, now
represents approximately 15% of total Company revenue.
During this two-year period, Century has built one of the nation's top ten (10)
accounting, tax and consulting services companies, one of the top ten (10)
valuation services companies and one of the top fifteen (15) benefits
administration and insurance distribution services firms. Century has
established this market presence by serving its growing customer base of over
100,000 small to mid-sized businesses. While most of Century's growth throughout
this two-year period has
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come from acquisitions in strategic market areas, the Company is now
strengthening and restructuring its top management team to speed up its internal
growth through cross-serving, utilizing its trusted advisor groups to distribute
products and services to its client base. This accelerated initiative will
continue to be augmented by acquisitions of trophy companies to provide a full
complement of professional services and increase the distribution of financial
and insurance products in markets across the nation.
Michael G. DeGroote, Chairman, President and Chief Executive Officer, stated,
"After a very successful rapid growth program in the Century Business Services
Group over the past two years, Century has established itself as a leader of
professional services and product distribution for small and mid-sized
businesses across the USA. The time has now come to set up a more broadly
experienced top management team to elevate Century to the next level of
achievement for future growth, particularly organic growth. We have accomplished
an awful lot in a short time. The new initiatives and management restructuring
announced today leave no doubt in my mind that we are ready for that next level
of continued progress for Century."
The following management structure has been implemented to continue to
accomplish Century's rapid growth program:
- - Keith W. Reeves, previously Senior Vice President of the Business Services
Group, has assumed the role of Senior Vice
President of the Company and President of
the Accounting, Tax, Consulting and
Valuation Group, the Company's largest
business services group. Mr. Reeves will be
assisted by Andrew B. Zelenkofske, who will
continue as Vice President of Century's
Accounting, Tax and Consulting group.
- - Robert A. O'Byrne, previously Vice President, Benefits Consulting and
Administration Services, has been appointed
Senior Vice President of the Company and
President of the Benefits Administration and
Insurance Services Group, the Company's
second largest business services group.
- - John J. Hopkins was appointed Senior Vice President of the Company in charge
of nationwide product development and
marketing. Prior to joining Century in June
1998, Mr. Hopkins held a variety of
positions with Coopers & Lybrand, including
National Director, Process Management, where
he developed and implemented Coopers &
Lybrand's national tax outsourcing business.
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- - Jerome P. Grisko, Jr., was appointed Senior Vice President, Mergers &
Acquisitions and Legal Affairs. Prior to
joining Century in September 1998, Mr.
Grisko was a partner with Baker & Hostetler,
LLP, which he joined in 1987. At Baker &
Hostetler, Mr. Grisko amassed a vast amount
of experience in structuring and negotiating
mergers and acquisitions as well as in
corporate matters.
Century also appointed Leslie Wilk Braksick, Ph.D., as an officer of the Company
with the title of Vice President of Performance Consulting Services. Dr.
Braksick is President of Continuous Learning Group (CLG), a consulting firm
which was merged with the Company in early 1998. CLG specializes in performance
consulting and provides top management consulting services to several Fortune
100 companies as well as mid-sized businesses throughout the United States. Dr.
Braksick will enhance Century's management team and, together with CLG's vast
group of professionals, assist the Company in attaining its next level of
achievement.
As part of the Company's reorganization, the Executive Vice President position,
held by Gregory J. Skoda since November 1997, has been eliminated. Mr. Skoda
will return as President of SMR Business Services, which was acquired by Century
in December 1996. Mr. Skoda was one of the founders of SMR in 1980.
Mr. DeGroote stated, "Gregory has made a significant contribution in
establishing Century as a leading provider of professional business services
across the United States. I am looking forward to working with him at SMR, which
has been a major `growth engine' for Century Business Services in the Cleveland
marketplace, where Century was first established."
Mr. Skoda commented, "I look forward to returning to SMR after two years of
helping to build Century into a national leader in the outsourcing service
industry. This move will afford me the opportunity to spend more time with my
young family while still very much participating in Century's rapid growth."
All other senior management positions in Century remain the same.
Century Business Services, Inc. is a leading provider of outsourced business
services to small and medium sized companies throughout the United States. The
Company provides integrated services in the following areas: accounting systems,
advisory and tax; benefits design and administration; human resources;
information technology systems; payroll administration; specialty insurance;
valuation; and workers' compensation. These services are provided through a
network of more than 160 Company offices in 35 states, as well as through its
subsidiary, Century Small Business Solutions, a franchisor of accounting
services with 650 franchisee offices in 47 states.
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Forward-looking statements in this release are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are subject to certain risks and uncertainties that
could cause actual results to differ materially from those projected. Such risks
and uncertainties include, but are not limited to, the Company's ability to
integrate its newly acquired operations effectively with its existing
businesses; the Company's ability to locate and acquire other businesses in
furtherance of its aggressive growth strategy; the Company's ability to
adequately estimate its liability reserves for its insurance businesses; the
possibility of market reverses in its investment portfolios; competitive pricing
pressures; general business and economic conditions; and changes in governmental
regulation affecting its insurance business or tax law changes affecting its
business services operations, which are described in further detail in the
Company's filings with the Securities and Exchange Commission.
For further information regarding CENTURY BUSINESS SERVICES, INC., call our
Investor Relations
Office at (216) 447-9000.
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