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Exhibit 99.5
[LOGO] Century Business Services, Inc. Press release
FOR IMMEDIATE RELEASE CONTACT: DAN CLARK
VICE PRESIDENT CORPORATE RELATIONS
CLEVELAND, OHIO
(216) 447-9000
CENTURY BUSINESS SERVICES INCREASES BANK LINE OF CREDIT
AND FILES SHELF REGISTRATION
FOR 15 MILLION SHARES OF STOCK FOR ACQUISITIONS
TRANSACTIONS SUPPORT EXPANSION OF NATIONAL STRATEGIC ACQUISITION PROGRAM
Cleveland, Ohio (June 21, 1999)--Century Business Services, Inc. (NASDAQ:CBIZ)
("CBIZ"), announced today that it has agreed to a term sheet with Banc of
America Securities, LLC, subject to definitive agreement, to arrange an increase
in its revolving credit facility from $100 million to $200 million, with an
option for an additional $50 million. The increased bank line was entered into
by CBIZ with the view of using a somewhat larger cash component for the
acquisition cost of companies that meet Century's national build-out criteria.
CBIZ has also filed an S-4 shelf registration statement with the Securities and
Exchange Commission for 15 million new shares of common stock to be used for
suitable accretive acquisitions.
In late 1998, CBIZ intentionally cut back on its rapid acquisition program of
1997 and 1998 and set out to strengthen and realign the Company's management
team and infrastructure to focus on its internal growth and cross-serving
program, which was officially launched in January 1999. This program is
beginning to show meaningful results. The Company reported over 15% internal
growth for the 1st quarter of 1999 and expects this number to gradually increase
over the next several quarters.
CBIZ also recruited top operating executives to focus on "CREATING THE POWER OF
ONE"--developing synergies from the integration of its member
companies--throughout the Company's operations and added seasoned executives to
spearhead CBIZ's high-tech Internet, intranet, and e-commerce operations through
its CBIZ Interactive division. This division was established in May to position
CBIZ for automated services and product distribution throughout its large
network of business customers.
Another key element to the creation of a single, nationally recognized
organization has been Century's recently announced "CBIZ" branding campaign and
its new tagline, "Your business just got easier." The combination of this
initiative with the Company's local trusted advisor relationships is designed to
make the whole of CBIZ greater than the sum of its individual parts, "CREATING
THE POWER OF ONE."
Exhibit 99.5 Page 1 of 2
6480 Rockside Woods Blvd. South, Suite 330 - Cleveland, Ohio 44131
Phone: (216) 447-9000 - Fax: (216) 447-9007
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Exhibit 99.5
After eight months, all of these programs and initiatives are in place and are
starting to produce intended results. CBIZ's operations are now better
streamlined under its management team, allowing CBIZ to keep growing through
increased internal growth complemented by strategic acquisitions.
With these programs and initiatives on track, CBIZ is now in a position to
accelerate the negotiation and completion process for acquisitions. The
Company's large pipeline of potential acquisition candidates will continue to be
held to the growth and profit margin criteria originally established, making
acquisitions substantially accretive to earnings per share. CBIZ will continue
to focus on strategic acquisitions that strengthen its existing BIZ Center
market locations, distribute products and services nationwide, or add to its
technical, web-enabled, and e-commerce initiatives.
Michael G. DeGroote, Chairman and Chief Executive Officer, stated, "After 1997's
and 1998's hectic acquisition pace and several months spent positioning the
Company's executive team, we are poised to speed up our selective and accretive
acquisition program and continue to build out our national `CBIZ' branded
network. With an executive team headed up by our new President and COO, Fred
Winkler, focusing on internal growth, we have come a long way in `creating the
power of one' for CBIZ."
Fred Winkler, President and Chief Operating Officer, stated, "I've never seen a
more excited, diligent, and able team of executives than the management team
we've assembled at CBIZ. They possess a strong commitment and determination to
make CBIZ the leading provider of outsourcing business services to small and
mid-sized businesses across the nation. I look forward to building continued
growth, both internally and through our strong strategic acquisition program."
Recently ranked the seventh-largest accounting company in the country by
Accounting Today magazine, 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; specialty
insurance; and information technology through its CBIZ Interactive division.
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 110,000 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 2.4
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 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.
Exhibit 99.5 Page 2 of 2
6480 Rockside Woods Blvd. South, Suite 330 - Cleveland, Ohio 44131
Phone: (216) 447-9000 - Fax: (216) 447-9007