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EXHIBIT 99.3
[LOGO]
CENTURY
BUSINESS SERVICES, INC. PRESS
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Business Services for Business America.(TM) RELEASE
FOR IMMEDIATE RELEASE CONTACT: DAN CLARK
Vice President, Corporate
Relations
Cleveland, Ohio
(216) 447-9000
CENTURY BUSINESS SERVICES TO DIVEST
ITS RISK-BEARING INSURANCE OPERATIONS
DECISION SUPPORTS CENTURY'S FOCUS ON PROFESSIONAL OUTSOURCING BUSINESS
WHICH REPRESENTS OVER 85% OF REVENUE
Cleveland, Ohio (April 6, 1999) - Century Business Services, Inc. (NASDAQ:CBIZ)
("Century"), the nation's fastest emerging outsourcing business services
company, today announced that it is exploring strategic alternatives for the
divestiture of its specialty insurance segment.
Century's Board of Directors has determined that the risk-bearing specialty
insurance segment of the Company, which includes Century Surety Company and
Evergreen National Indemnity, is no longer part of Century's strategic
long-term growth objectives. As a result, the Board of Directors has decided to
engage the investment banking firm of Donaldson, Lufkin & Jenrette to advise the
Company on its available alternatives. These alternatives may include the sale
of the division in whole or part, the spin-off of the division to shareholders,
or other similar transactions. The net proceeds, if and when the segment is
sold, will be utilized in the continued rapid build-out of Century's
professional business services segment.
"During the past two years, Century has successfully acheived its corporate
goal of gradually transitioning the bulk of its business from risk-bearing
insurance operations to a primarily fee- and commission-based business," stated
Michael G. DeGroote, Century's Chairman, President and Chief Executive Officer.
"With the excellent growth achieved during the past two years in the Company's
professional outsourcing business services segment, the risk-bearing insurance
operations have steadily declined as a percentage of our total revenues and no
longer fit with the Company's long-term growth strategy. Specialty insurance
revenue, which accounted for approximately 96% of the Company's total reported
revenue in 1996, represented approximately 15%, or $54.5 million, of 1998's
total revenue of $352.0 million. By separating the specialty insurance business
from the Company's core business, we believe that the management of
Exhibit 99.3 Page 1 of 2
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Century can better focus on the significant opportunities and growth prospects
we see in the professional outsourcing business services industry."
Century Surety Company and Evergreen National Indemnity Company are approved to
write insurance business on both an admitted and non-admitted basis in 46
states. Both insurance companies are rated A- by A.M. Best.
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,
advisory, tax, and valuation; benefits administration and insurance; human
resources and payroll; performance consulting; and specialty insurance. These
services are provided throughout a network of more than 200 Company offices in
36 states, as well as through its subsidiary, Century Small Business Solutions,
a franchisor of accounting services with 650 franchisee offices in 47 states.
The Company services approximately 100,000 business clients, of which
approximately 54,000 are serviced through the Century Small Business Solutions
franchisee network. Management estimates that its clients employ more than 1.4
million employees, including 400,000 employed by clients of the Century Small
Business Solutions network.
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 liablity 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.
Exhibit 99.3 Page 2 of 2