CBZ - Earnings call transcript Q1 2021

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Operator

Good morning. Welcome to CBIZ' First Quarter 2021 Results Conference Call. [Operator Instructions] Please note that this event is being recorded. I would now like to turn the conference over to Lori Novickis. Please go ahead.

Lori Novickis

thank XXXX joining results and CBIZ for everyone, quarter first conference morning, you us for the Good call. website, Relations In press connection of Investor release today's our page has been with posted to this cbiz.com. call, the

As a webcast link transcript, an the to site. can as is also webcast well on replay and our as Web a live archived this reminder, call being and be found

press non-GAAP management presentation today's statements, prospects. financial conference including financial Today's to in cash Before Reconciliations remind condition, release forward-looking would our call regarding you may operations, our and discuss and the financial during tables begin measures business, the certain on our we these like strategies statements call, measures. in include of can results investor presentation, that found may we also of be of website. flows,

factors the Exchange relate estimates assurance give this represent statements statements forward-looking actual on call statements subject to not have are to cause as that assumes date Forward-looking intended risks inherently in are any Many occurred, statements. can no filings to to found materially. Securities of such could yet detailed note uncertainties. future and factors be to differ results that the the of update these matters Because not results. only forward-looking conference with A Commission. and Please more and to description obligation CBIZ future

Chief President opening I for his over Officer; us Jerry will call Joining the and Ware Jerry? Executive turn to Grove, remarks. call Grisko, Jerry Financial now are and Chief Officer. today's for

Jerry Grisko

everyone. and good you, morning, Thank

These start in earnings EBITDA provide of share revenue, important for are first the remainder morning, our same unit We year. XXXX. first experienced adjusted momentum results of growth this release total we the year. pleased and the of strong with our the results the quarter to for revenue, per With quarter

representing include services, us enable services, continue approximately year. demonstrate of emphasized the business of services, our our attributes a past that provide model characteristics our that our on favorable the during business and rely from proportion, both regardless results comes tax These favorable positive and These payroll throughout to less I've the attributes our host Our performance fundamental of and services business recurring of conditions. clients insurance to revenue others XX% essential that including conditions.

Our high of cash our terms consistent geographic of of the business, client and of client rates, substantial in retention the size our broad variable and base business. in diversity strong industry amount our our expenses footprint, and flow

on the affords. capitalize year our provided Throughout of these opportunity and model an attributes have XXXX, watched last the that We stability business regardless of how continue economic us environment. growth the into to first for quarter we

we Practices on continue of this expenses the pandemic of be focused to carried the and in our start In we discretionary year. managing overall extremely addition, spending. the and vigilant into at first quarter

and continues, well, to these recovery level we begin at return compared albeit of As somewhat levels XXXX. to return as expenses normalcy, reduced to will some

M&A valuation the anticipated to revenue for support work year. services. quarter seeing towards compliance we advisory IRS extend demand our tax traditional especially Further, group, and performance our to Within was so businesses, year, to including Services demand services filing each our services, Now that transactions. first our weighted May time for Project-Based of in XXXX, seeing very This for are would of I increasing or and that the we and was last core and over into continue carry project-based frame. we discretionary practice our returning on now, are of interest experience deadline more primary touch mid-April our delayed equity and to hold work services portion the continue heavily business some litigation turn groups. tax the that two Financial are our compliance-related that experience the Within that a Discretionary will strong extended we put many our will private of year beyond services our XX,

continue those to and like present translates it to positive passage considerations early encouraged is XXXX, important signs tell remain While clients if based when the the recovery. need for too support signs most. hearing this note, still year, new trend external businesses our COVID opportunities and relief of client are stimulus the from the relationships throughout more optimism for Also, of of most level bill on to passed our general will offer we and economic all to are and recent our it deepen package, and in clients we the us

continue outreach and in these opportunities. engagement help our our clients accessing be active We supporting expanded and of to to new

with strong Our government contracts adjusted delayed clients us tools. virtual ended as we tailwinds resumed, our healthcare year consulting with started working have largely business XXXX and using this find to and

forward, projects related which We opportunities our increasing move interest care, including new services are additional managed business. also in to this means for seeing

started Client positive experienced to Benefits strong second clients experience our advisory businesses. in a half provided the portion so smaller plan these segment of total to serves in in this for consolidated highlight seeing that softness group. benefits total One retirement a and last industry. producers. of want number X% CBIZ' core is our I business, the casualty generally services area represents trends far Payroll in is less up are of the our of the To in investment within including context, business, a in property employee and continue Turning some in the retention continuation we the food this We our our services additional the Insurance also to year services businesses, services and revenues. year than XXXX. we of our viewpoint, of the same and that payroll put from business From revenue our

The that turn are summary, producers add business. I sheet, years our and this our Ware at the essential access our number to new to we we make areas up of are to strength our is area. over start pleased of comments. balance that, for overall to ready capital. outperform to of and brought new we will continue with With In is producers other his this growth, of organic producers report track, continuing projections. in develop we XXXX and and a to producers continue on recent pleased result, financial to to to a I expand XXXX, program strong a progress position as low it debt and start to And Our to accelerate retain ability in am in

Ware Grove

morning, by a we take of to growth With up with minutes and growth same by revenue through in good first quarter, you, the last and I released businesses And year-over-year in to unfold the X.X%. how quarter. uncertainty the everyone. After of unclear for revenue unit growing facing that run positioned first growth, as the Thank has this we XXXX XXXX to coming conditions to record want services from to acquired total the encountered X.X% the morning. Jerry, numbers year X.X% this few highlights the accounted The year, last into continued much we growth more business were advisory vulnerable in expected, would year. and that transaction-oriented are were steady of business year. core comparison largely this saw that stabilized, we have the through performance

we remote X.X%, clients, soft growth where of comparison We have acquisitions lend total revenue and prospective no focused this advisory quarter unit recorded we work consulting the The only within With business had full pipeline services to business. to clients growth our conditions, our quarter. year healthcare performing equity group Continuing government well, Services of revenue work industry this to the the the serve first Financial same diverse a year set strong X.X%. Our are of first stability compares closed extremely full within business of with this strong with year a expect private concentration a growth being report quarter core year. a first the ago. we for currently with last group under

revenue X.X%, benefits same by this grew group, in quarter to unit first with revenue and Turning the year. of growth the total X.X% insurance

payroll after year quarter the with insurance Some for of the services, year this unit first quarter noteworthy. benefits decline year revenue of year, are is growth first X% transactional-based full soft But same last a businesses, such a X.X% as within same the revenue ago. reporting in comparison unit

As business. in is of Jerry investment years in additional commented, our producers has recent that pipelines resulting stronger occurred in new

enhance We producers to growth prospects. in bringing onboard are client with further When growth. well positioned coupled retention, to for we strong are continuing invest additional

work. remote debt ago, discussed, are the bad as by remain expense. an which expense As managing the first that directly we for given for include travel recorded entertainment $X a caused and expenses, lower year of pandemic our reminder, a the of example, million to additional quarter we tied in our constraints Jerry levels in vigilant Also,

And improvement are so this client year. was we lower the with bad seeing, debt receivables in expense

compared pleased quarter up are per share, expansion to earnings this basis $X.XX increase to margin to in XXX We $X.XX pretax income, first in per ago. on point the with report a XX.X% share a leading year year

may level through and balance of progress of for resource quarter second to year-over-year that comparisons we this the we spending, challenge As and the year. intend discretionary in some year, the the

in the Also, second, procedures first lower is quarter benefits now the predict national throughout quarters For a marketing of in was in is this but medical many the lower this cost example, normal our After second costs media in healthcare trends pointed deferred. were year. over the or out benefits this XXXX, of as in near This last our costs of our third again healthcare delayed level this quarterly were we expense more expect as fourth and calls, the were hard in quarter. to year. and term, campaign we paused year, but and balance expense investment XXXX, in underway lower experiencing

So bear create as we balance year. progress some may trend margin the through in volatility to this this of mind,

and a see year impacts reconciles an on year our the for which attached basis plan compared basis operating XX.X% compensation with gross impact XX.X% ago. an our in This earnings margin will accounting was ago. the table assets. year XX.X% You losses to And this deferred margin, adjusted a was reported XX.X% compared adjusted gains on release to of a our that

outstanding in XX, at million million XXXX. of build credit year, our This unused March on million with with unsecured At $XXX busy season continued $XXX outstanding on in receivables XX days outstanding as with As cash each this sales is to first there Seasonally, receivables XX improving be year a days typically quarter Cash to has strong, impact to days million CBIZ the facility capacity connection $XXX the ago reminder, XX. December at from compared approximately year. balance flow revenue. our XX $XXX a uses leaves pretax year no was income. this March

powder as So we dry continue opportunities share XX, repurchase acquisition we approximately used repurchases. with $XX.X to million In have plenty as of quarter, well address to shares. X.X million approximately first strategic the to Since date. of approximately XXX,XXX under program end have a the quarter this X.X through repurchased million year April we additional for shares purchased shares the a of total XXb approximately

a further million slight shares, which result a diluted updates average As range we earlier we full we and with compared within XXXX weighted million our year, through for a progress will fully represents expect year. activity, this provide a repurchase in this XX.X of count reduction XX year of as expectation guidance share the to

approximately million see million be we Of announced have million deploy year, an acquisitions, acquisitions, acquisition. and closed X. announced Future comment capital. be year closed used will this new XXXX, further over $XXX the on of contribute the May to including do million XXXX, in year. million we And XXXX, as in on the seven earn-out be revenue previous course, the year, $XX to throughout acquisition, transactions $XX.X for estimated revenue, continue acquisitions. quarter, are the to not this capacity, acquisitions earn-out at the approximately X in include $X. this these of top In million I to acquisitions in With just payments pursuing effective X growth referenced to and annualized we flexibility January potential recently next approximately year. contribute payments this $XX.X the Last and we priority million expected acquisitions on unused aggressive are numbers these Xth strategic years. effective acquisition will in $XXX,XXX we approximately on we Jerry which first in clear, impact for $X.X $XX.X is of XXXX. of balance Collectively,

this capital first $XX announced quarter XX.X% the compared Beyond we effective of $XX.X million on to with reported from The approximately year spending the first a tax adjusted continue Capital the million have by in estimate The the million to year Last for full was full $XX continue was XXX to of XX.X% year, we spending year $XX EBITDA points first to acquisition to quarter in capital quarter we million. and Adjusted ago. margin million we was revenue the in to million. year today, at the potential EBITDA a up year. for the XX.X% project spending approximately basis for $XX.X XX.X%, year, for $X.X acquisitions. grew rate an pipeline this ago. year rate a was of expansion tax continue full effective XXXX, And full XX%.

are of we factors the tax not effective occur. on that can can may be the legislative up the changes down impacted unpredictable, of number impact by speculating be or either rate reminder, and a potential that rate in tax a as course, Of

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

Jerry Grisko

I'd Ware. we it of to areas over touch turn a on you, additional like couple Q&A. Thank before for

growing year, Middle retirement to First, completed M&A, in This to compliance Denver market tax, and a industries relationship Services, and services tax regards call. offer core attractive one during last services. we've acquisition a another of our third-party a client, of Valdosta, practice. we consulting acquisition array services I'm provides our we located and provider I rapidly acquisition our business. Retirement CBIZ the Colorado. longstanding started Already Wright many groups country. clients accounting this with across services administrative of Denver, clients strongest to we've Located their of practice M&A is Georgia, within with plan plan in the opportunity services pleased in mentioned the middle Advisory had and acquisition also pipeline Retirement and the excited in XXXX as Market Group based M&A number a complements family in years. within our announce to by companies Wright a and of are has to broader retirement the

As we the and and to latest acquisition we signed assets documents to the are This a new Bellevue, we team Porter, to commented accounting announce week in of our business release, welcome pleased CBIZ. Washington also based firm. definitive our earnings acquire Bernston non-attest

identifying in like our attractive platform partner that has been this, As to growing brought partners success. the be you for size, scope know, completing and for client base of that acquisitions as talked as would cultural market a serve Pacific in and a a markets. and growth we've number we leadership enter as for strong The and prioritize always, essential region. of about To alignment Northwest values And with do and wanted on future a a that list. we years high catalyst it fit,

take and beliefs. and Porter will under time for Porter's number to wanted Founded The as potential grew exceptional of beyond, that the Bernston Porter, of acquisition we service the and to greater today Over qualities growth XX outstanding live, Actor, Porter. Mary strategy a M&A evaluated closing announce I market, we've a been values May do leadership CBIZ opportunities and and Bernston as they region. of to to in in component this especially X, but CBIZ' years, it an Metropolitan of client the Bernston is to interest Greg by brings all to to over where reputation CPA top welcome with satisfied. the Bernston one of in effective commitment work and Bob for align Bernston core this CBIZ' conditions led have communities the all team for continues that team it top Puget in us in see to a be the Seattle us with service, and XXXX date want process the key team, CBIZ. XXXX their priority firms as increasing partner. we and growth a members, Sound opportunity development the Porter be a to be President to

model. the Our our performance pandemic backdrop the year over and of business the last value on demonstrates stability the of

unique expertise strong depth We emphasize and position given breadth and services and the cash market, flow. to our also continue and our of in the steady our

guidance. allows Our like cannot to business revised to to that our these we of us messages our these our many capital to know resonate would afford. investments competitors the to access to with each and of make firms now I in continue that businesses, We simply are eager in turn opportunities. various explore

a performance Bernston As strong on first announced guidance. of acquisition X, May we are the our in Porter our quarter upward the result revising previously effective and of

between guidance X% XX% to a is earnings to XX% year of year full revenue full XX% share per compared revised to of within for to the of range grow Our the XXXX. and XXXX

I traditional acquisition, of of in tax of Porter throughout that a announcement as and will next in pandemic, busy revision out a phase amount remain While first assumes firm recovery there business to this of that that revenue year. disproportionate With remainder point our improve and the its to the guidance will of the the the still half timing is guidance of navigate recognizes want is this the we deadlines year the uncertainty Bernston the and or the same the continue due season. that conditions accounting

of seasonal over beyond. it will and nature the of more With Given fully acquisition in impact will the Q&A. turn I this this, this business, to earnings realized XXXX be

Operator

Andrew [Operator Blair. Instructions] from Nicholas is Our from first William question

Andrew Nicholas

for with on wanted was throughout Obviously, impacted the exposure market, us M&A. think you the dynamic whole? broader first help business I or as about record period? a specifically. think, in And respect I the dimensionalize And not to how your way it me help it Is with in, maybe how growth your the to positively levels it you question also, that there mean I CBIZ for to the start any much quarter. to

Jerry Grisko

Jerry. that dependent our this think on really why. business There's on, difficult When Andrew, acquisitions. be highly highly So dependent are really would to you tell is how really impacted and our specifically pieces it tell of that you X about growth, I'll

the obviously awful for quality other within The lot to an do our capital host opportunities. of activity now for million helping we for first is us equity certainly more around a That's accounting is the business. to But private to that tell acquisition investments in including economy, I we our our bit equity advisory us provide assess provide the also That helps work But traditional clients direct million obvious we growth large practice the sorts, we portfolio In robust primarily earnings, year. to structure of funds with how that business and all $XX that that's certainly a a have. consider market. will services provide about in as a companies M&A. favorable for more business, the principally And broader more a them $XX and we one, of private FP&A, business tied overall their highly difficult assessing M&A general little dollar M&A climate you impact. capital, of

Andrew Nicholas

on the each level sizable a then your records for I pretty remarks prepared segment. know margins you segment at And looked to bit gross but amount a beat little touched in it where, by

any high hopefully of to be as kind was future some years, would layer some driving helpful. level away. and there hoping the of kind that color costs are I that of and through seasonally that could that So QX performance maybe in in the is speak time that improvement understanding fades walking pandemic But there you of back you'll spend sustainability what's

Ware Grove

expense first were unique versus the and year. couple last they were and sustainable comparisons, be and year which Yes, expense comparing was won't the largely quarter, the They which gross a frankly, margins aided margins quite of this high to throughout year-over-year COVID were in pre- pretax the year, by extraordinarily levels levels.

year. a and contingents experience all sustainable be that of and in So first of bad to the on won't that. That's quarter client insurance expense, first retention $X.X had, Also million roughly the onetime the quarter debt balance the bonuses we comparison for claims was prior carrier first year side, of the and we that benefits and things carrier typically relate get the the swing. like

our items March kind business. to of to travel low year look And nonrecurring quarter, through the last of about didn't as the at But onetime that quarter, was the So that entertainment, to was thing then $X.X to expense continued until COVID and like very favorable a things it item. this impact was just stay most in first when remember, other a year. and also be it million at started really and the you start first those impact orders home when levels to midway expense

year-over-year So once respect to of kind quarter comparison expense first favorable have a again, the levels. you in the with

example we It the out pulled right mix -- comparisons this be takeaway totally opportunities. key because see year-over-year expansion we just and protect another going some business. paused see year, margin going that, basis choppiness first a original quarter. that discretionary yes, and This enhance would some media on last the will marketing We the we signaled the campaign. this the we're the the as But year to guidance. for very long-term the talked experience thing. about We're it's that to think to So year to just to year big pleased with respect choppiness of we're was with

you're the in year you So whereas wouldn't the impact seen expense, that have see going of quarter, to last second it.

the things that but the improvement and this just will because talked expansion to say I that think I this And each margin long-term I our about. we think it basis, occur We basis get year. points upwards year, XX say fair be XX basis year. So to certainly to a won't will goal points XXX-plus see it's on of XX, it's into commonly every

Andrew Nicholas

the I that just was the there. come to you for business you your is more to government returning And qualitatively, one you. if they remarks you you noted healthcare if quarter? in levels? think business And in how growth some on -- acceleration first, wouldn't already the well, through? those maybe I Thank recovery extent guess wondering more the utilization mind what the business, haven't to me pre-pandemic also, squeezing say I'm specific prepared have thoughts for levels But type that could on cadence in close any that But just

Ware Grove

and Last this to that's often question, point, we dollar-wise Andrew, out the single-digit year, gets still pushed it remember business, growth but very conditions, the pretty your that saw percentages again. because remote may big behind is Ware we've as remote said we some of impressive. just grows range. maybe is converted less little but That really it enough some the typically client and is it and at was you in good the high work get work, tough, news in disruption efficient. delayed was But

of did year. this first grow single-digit year. so range, will kind we come and the of And mid-single-digit the into range, And some not the back high in expectation quarter, that for that's

Operator

Company. Marc Sidoti & Our Instructions] from is question from [Operator Riddick next

Marc Riddick

opportunities talk a the hiring then to I seeing around bit And could those of advantage what future have for follow-ups of little about there you're you growth maybe around if what be take opportunities? a and that. may sort of and couple Wondering plans

Jerry Grisko

that is Yes, the understand question, I'm I sure not we're more -- really in have our in this plan, going it, answer what year guidance today. the staffing our I'm for fully to we but specifically,

is staffing concerned. think guidance as the we have far we to plenty set that achieve out growth So of we as

the our including share. things other pull and true in including somewhat think on we things said, we, believe that a put you in the industries. available. to that again, types opportunities, that win there's have also that headcount certainly clients We some help With provide like of of clients, our achieve the the there's we that packages other services across that But our the are works. put we no we'll workforce, question in we that board, as that our to generally a pricing, things we that growth in resources there the levers and place into see is the to compelling that our just economy, there guidance the have value our can navigate that's in are labor tightening addition seeing, are that we additional to proposition are We constraints to stimulus of that programs in market,

a think get considerable we of the So towards. us certainly Hiring bit have about we a we've we And the producer them. little growth number program. talked that is one help levers that guided will of

We we very attractive and continue to confident side, also we that to on recruit will numbers. and believe a real to that have model producer we're those into the add

Marc Riddick

from And for existing for the able navigate at if the was to as customers that look an far the your wondering with pandemic and then may have had like. you that the work the going you of pandemic and played as new your that if of you've both had sort how of providing resources during customers, things generating potential and circle helping possible of part that of sort but And one as information how customer course customers to deliver has can sort new there information were one navigate that as much of into and in translated I the were back or wanted outreach numbers sort on, the webinars programs of I was to things and standpoint, the active you the thought very with, growth and what was information that forward maybe opportunity any today?

Jerry Grisko

our serve ways have feedback our way the and of the outreach breadth we've our We of commented They the And at programs I and of learned year, depth value in through end, them that depth very of model, other affirming as packaged the simply engagement. last services we services business webinars last from the the received all, that provide, provide. or think prospects we competitors came in that approach, our client the year terrific can't. right? we of our expertise. don't the value was through of be through to to First And as many I expertise and clients scope of to a together lot able all and that just holistically that this and it early of year, products the services depth

your into continue that so future. And to question, the will

are have developed hosted. invite, and pleased the in on And funnel very, We we kind and we those clients revenue very our participate new are We result, the clients, continually programs. programs with pipeline. prospects, a again, key of top as being of that additional decision-makers invite to

and So future. XXXX We in learned things have that us. through better those to for those into pandemic, things the those on execute how the much continue programs worked will

Marc Riddick

of to about circumstances. it about several and course, for and the year years, but a as last I federal quantifying way a sort a delay a sort sort because even And tricky, but might initial then years course, of maybe one compared have company to think be the way to know if pandemic last there think a Is delay of ago we of sort traditionally potential so there year, of of had versus following there's normal been a haven't in year the this of season, the this much little well. month to is me, difference Maybe in may way been, maybe or Last guess year, couple shifted shutdown. suppose, if I what we have how have revenue a I what federal. not had under was normal -- that would last was unusual one might

Jerry Grisko

is learning no is year. there we're typical What

year. with may of why hopefully be very periods something I that message of relationships the you've or revenue That business going Because as And difficult states. between received contracts as just one to away. A to provide get caution Ware years. those other business deferred. doesn't We that's his long-standing the those another kind lot a these regard can I once positive large to are think done. generally, said, into to quarter-over-quarter may high that There that go digits. to over work to for is We're work we which going the at as guidance quarter swings It that the the times, often be we very is And But have that reasons contracts, business we with traditionally from With single how times, and the mid sizable done. us. and we've model to best alluded timing really trying remarks, issue in that always have can face and there. is we be of a quarters guidance results in against are. these to revenue, needs those large shift grown think it's be that M&S it's might why

as in lower, gets the impact to percentage being growth dollar keep longer look certainly fairly of be will levels that future it While I you year-over-year. the business of over at periods those of at time harder think could the consistent growth the

Marc Riddick

last just on, to of acquisitions is as eyes sort curious partners, wanted future you in seen. I your like? I get general, Or partners and them. the was and seems one wanted are sneak of And maybe it relatively that, in this a the attractive as those and done touch to destination, want appreciate of would of really on what conversations more as like were challenges potential I of have following one. I you to sort to executed we've what sort always more I feelings be a speaking, though but guys really sense well

a are that maybe if of the years I having they they So conversations an sense fresh you're you're sort were attractive than different was destination now, five, when it's wondering and partner? that you ago six and got clear future that

Jerry Grisko

years different we not XXXX what -- and only from as XX competitors. from ago of past they're five XX six in months the ago, experienced they're of result compared many to over Yes, Marc, our a different

talk of things. kind about of me those both let So

recognize over think I to we've that we earning scale. sustained come appreciate and people have performance what is all, long had a back growth, look of they when and sustained had our time, margin, of we've substantial First over revenue period

they -- in continue oftentimes that don't the when XXXX to And technology, providers in time, appreciate bringing come it and those that doing, And markets it compelling But the XX be development months those love the past in they have only points or CBIZ, since as make have and over most And our is, insurance we regarded we'd difference investments. whether we've the in you're the no those part there's to resources the this prior like history, and on clients investments competitors, side, interested attributes response and so to we just of to smaller service time, in our on investments growth simply know the for the reason investments highly to in opposed allow today in products side business, solutions people, investments we're us various really those things. what industries. it's we year really What prior to investments and in make in our our that to conversations past over or someday. really with, seen accounting to to do at tomorrow. practices, benefits CBIZ, is, The the like we our maintain that business, different, XXXX, continues, the transactions not XXXX it they and a able call, changed conditions. we that the depth and we're that continue clients way, in many into more had well. economic able story. flow, of typically the the in as M&A story, the bring more. them have programs And in And able this outset and I've I and in then to in in we're that by We leaning XXXX did they of being to able we're strength investments they're many, fullest of were in very telling of things, result, balance they're and of it XXXX to we the seen that the expertise, pressures in years, that of your said things telling But all the telling favorable hearing message. there's those being pipeline to message receptivity that and great is would and a that to at as as that our faced And sheet, like make to unsettling types breadth cash face bring workforce, XXXX. uncertain to as help our to time strength of being

Operator

Chris Our from Moore CJS next question Securities. is from

Chris Moore

here. follow-up the gross Just margin. a few One on

did So of good a where obviously, from. some excess through margin coming that going you is job

or side, differently? same it the travel impact the On does the segments discretionary expense,

Jerry Grisko

I probably clients. be where trade we've The details, think side, financial on I don't got would the expense getting side. billing kind it's insurance out, mix clearly and safe. side, the would be and debt delta traditional I services probably have just impactful between towards carrier equal too oriented bad And the benefits our kind mix Yes, I receivables of the on more with contingents the the to or -- Without is that travel proportionately entertainment think the revenue sales but of the which the two. called and then

Chris Moore

Obviously, from that to I financial seasonal. understand I Still, want seasonality standpoint. very make a services, sure

the benefits how of insurance, benefits walked is etc. revenue $XX some X.X%, is, from insurance, a margins terms in more you What through to understand does insurance I same seasonality in I'm that forward? I the you so impacted it? revenue in gets million quarter you moving acquisitions revenue significant QX think, On the in trying How said, there. $XX guess QX why in piece, sometimes, and did the where first benefits standpoint, story is and million

Jerry Grisko

insurance benefits businesses of really are Most into and the seasonal. that the aren't embedded

of And the employee For throughout Retirement business planning services, throughout same the year. equally. payroll the it's pretty is kind year thing. instance, benefits

when On typically side, that the renewals happen there. the we annually, property typically and you recognize see revenue casualty

midyear say front-end midyear seasonal opposed year-end because renewal. highly renewal that But to cycle cycle. as a that opposed not a a So of of might as be have it's to do clients fair more we a share a loaded, calendar a I yearend kind would little

quarter. about seasonal carrier come was think that come thing in through on one commissions year. I through they typically based we the the the did that that talk prior And the first

Chris Moore

that the revenue store? in more XX% of side? towards is last to the between it one, just same terms acquisitions acquisition to the pretty evenly is skewed guide, and X% Or And skewed

Jerry Grisko

-- portion probably probably year. with to third the be kind split third, it's will larger typical of continue It's true opposed in accounting over It's acquisitions to more one the that the time. that most of safe a XX-XX might say first throughout the that for as split quarter, two

Ware Grove

that number have do clarify that though, acquisitions closed. I Chris, kind of want only been to count we in

know, there's a rate, As you it's hard [mortality] predict. high to

that to number. future that think So I in don't we have want you acquisitions

Jerry Grisko

We a did just eight acquisitions X, through new one. announced January plus

it towards year. more So this heavily acquisitions weighted is

Operator

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

Jerry Grisko

to confidence thanking by take close members. opportunity I Thank also do, as to support. our we and team recognize want CBIZ today continued you. I analysts your always our and our want investors, for this to

more of your Our even dedication. I'm in remain a what of excited year working in the proud of for noteworthy the commitment you quarter day. to talking and everybody what forward achieve the together, the over performance direct ahead. look is Have I result accomplished incredibly second Thank we and can we and quarter. end a year we've the after to great first last

Operator

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

disconnect. now may You

CBIZ (CBZ) 1 May 212021 Q1 Earnings call transcript