CBZ - Earnings call transcript Q2 2022

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Operator

Good day, and welcome to the CBIZ Second Quarter 2022 Results Call. All participants will be in a listen-only mode. [Operator Instructions] Please note that this event is being recorded. I'd now like to turn the conference over to Lori Novickis, Director of Corporate Relations. Please go ahead.

Lori Novickis

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

live reminder, the call link this found be a being webcast can As a on and is to webcast our site.

replay and available call. be transcript after also archived will an addition, In the

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

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

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

Jerome Grisko

for to and share outlook the second for call. to today's morning, our you, our year. of Thank the us Lori and results We're good thank remainder you joining everyone, for and quarter pleased discuss

half major performance revenue year our to last momentum of experience had service organic that our the strong especially this strong to first second I'm continued coming report we across we in exceptional into And growth based this pleased quarter, As XXXX. has all the the continue momentum I year. through discussed on on lines. in call,

Paneth, completed Our bolstered demand advisory demand, including second to Similar active. the Within essential group, demand our we high season our accounting services, to successful services. has experience Advisory of and aggressive which allowed strength up advisory busy to essential beginning by also us we've of were an we improved to recent our our the traditional Services private of quarter the Within our for strong aided growth. has the for our quarter at which of practice approach continue our for second remains Financial acquisitions, driving within market wrapped The pricing, we services. Services, rate to year. results take also equity continue these tax been M&A as our experience particularly Marks our and acquisition this pricing during the in

the The consulting on to the government business. that was through care projects. of continued that Turning the has our we aided that back two now years positive to second and projects several the a are in number launch trend experienced by quarter past delayed track, during were addition of during health first quarter new

growth in retain and attract Services group on the within ability sustained to dependent we've discussed As is past, talent. our our Financial

clients. that talent tight, to remains many from we efforts to we techniques us of information strategies digital candidates experienced to by expanded encouraging the internal individual same our have marketing to These pipeline our the full a each team our meet market process. recruitment of the use labor the deliver results tailor that and We've cultivate growing recruiters attract to of needs the of new business. potential allow While throughout also we utilizing attract

create we this higher appear others more even measures our they favorable culture than industry, more in within rates and to compelling are expanded members. than in team career turnover opportunities our many for to periods, somewhat our While group prior and take continue

revenue historic service our with lines. first Benefits the has driven impact rates high Insurance continued last That growth year. year, sales, this reflects group finished our and insurance to turning of strong of again with trend high We year retention retention year group. the strong throughout and Now primarily and rates, property and casualty client benefits positive by our half organic and new and combined last sales generated this employee

businesses also this in than higher continuing last our year producers year. for pool to two is grow investment Our as is producer these XX%

We pipeline with that services new demand strong. platform for aggressive within are complex been investment in and strong larger business. fee retirement also continues. payroll, retirement impact our our investment are areas we have growth services results. and needs of our of other Within clients on payroll more Like these serves experiencing upmarket our business our And remains increases the sales business, and our seeing pricing, both payroll

details volatility to they through market their results, and Based for raise generally guidance likely before performance take is the confident half speaking our address while earnings as small strong year, to provided over to extremely growing we at the also view revenue will and strong we moment such full our project-based Benefit on our adjusted it experienced comments. of calls year pipeline the we I concern be we I to and bellwether to through Ware during of position for our the in in our turn will are his division to often affirmed our they Ware, and beginning and pleased EPS only a of of the you perform questions advisory and our guidance, in demand and a year-end. consulting Finally, as I the remind work in no that In economy the executive want ability call, clients, signs slowing. our a year. search up businesses recent last make the the these for compensation this our year But recession. Insurance of the businesses, strong for We full of the with segment that this first in remain business had pending well sampling regarding walk with a business. of

While acknowledgment related national within and ability remain an of even levels, successfully their local the and in and clients their markets. their inflation, there's confident issues global in compete to labor and generally navigate to rising at shortages our prices to industries regional the

XXXX the our the and For CBIZ, we to made of our substantial crisis XXXX on consider then. business business, investments financial look in that consider when during potential a recession impact experience and since the we've we the

share growth processes time, to also Even we focused diversify business our sustainable with other the the to the we've investments came business able business made CBIZ continued and stability our to and period, lagging on on expand growth clients. that into tools, than industries. that the we enabling were considerable and despite in systems, use supporting this and everything within levers the impact, at total Moreover, drive further, resilience to we've to climate. from of Even back challenging our earnings offer all later downturn more that regardless various to impact revenue more our since climate. for Looking many people in the per disposal and and business services

present. and in our environment and in a able them a are to of may clients uncertainty face better the the opportunities to support help changing much navigate We position economic different challenges to be and both

face recession significant would final our volatility I caution results any I XX strength downturn, economic were the am start confident to in place we that, the do financial we that to that of and we've due more past from Given a than quarter-to-quarter that want or expect to to completed significant of continue months. experienced, number acquisitions to we've historically certainly in part in note, from One strong, if relative a we perform others.

over Chief a of this, our for given in to more Officer, to for prior quarter quarter would the any advise same details against revision the guidance performance we our the As year Ware? will the to I Ware Grove, our and on provide year. the financial this With second result, of Financial any specific years. comparing remainder period turn

Ware Grove

morning, good everyone. Thank Jerry you, and

minutes take second and a about to of talk me highlights numbers year-to-date key this few morning. Let we released quarter the

business. strong a quarter ago. up in second quarter numbers year quarter a our the in reflect second revenue second by over XX.X% million, The very $XX.X Total increased continuing momentum

The second up $XX.X was with or growth to XX.X% year. by or same million $XX.X up million unit compared quarter contributing XX.X%, revenue with last acquisitions

up million For or with with for growth the up compared or unit year, $XX.X months was year XX.X%, lines XX.X% up with of growth million, consulting million, months total last XX.X% XX.X% grew total this months unit this six $XX.X Financial revenue between by revenue up revenue advisory by grew for for by Same second with up $XXX.X government evenly year. the $XX.X year. and by second to Within for strong quarter, our grew six the care quarter compared health revenue six Services, XX%. million contributing Same core acquisitions the or revenue spread service. $XXX.X million, the by last revenue

six For again, Financial million, in robust of care Services evenly health up XX.X%. $XXX.X grew up spread Same revenue the by and for was Services Financial acquired and businesses The first total the was businesses. contributing growth. to this through focused activity revenue half Acquisition XXXX this revenue advisory six total government months months, our within service. between primarily unit consulting the are and within lines newly year XX.X%, core

and year. hire has revenue months. continue first revenue grew of growth same investments remain to by within And the further Insurance and of years Benefits impact within share we operations year new as the the six for to grew business increase XXXX, We results continue quarter sale of in for lap to will six beyond. well, second Insurance, earnings in quarter quarter we in and XXXX, that also we January half announced for recent Bear basis, in moderate. naturally $X.XX for the the the last mid in at and $X.XX Benefits the balance and recorded the Within reported in and capabilities committed in per of same the and the per XXXX year second the the traction. will Every for we to plus we on the and This We the continued Paneth quarter anticipated non-recurring gain quarter will the reported line for producers the second X. by for Insurance year, look perform XXXX, group unit we year, make share costs recorded we eliminated second outlined acquisition the million adjusted enhancing made mind, revenue was of the the but months. additional revenue you of effective and the million settlement gain estimated second to share associated have acquisition both million XX.X%. approximately $XX.X adjusted $XXX months, integration service these the eliminate acquisition. with a $X.X attributed revenue unit growth in an and year same per The of the second acquisitions acquisitions, Benefits investments quarter, X.X%. XXXX As we for we first annual in six year months, unit the activity ago in On to producers growth total this of Marks six hiring transaction cost, to number of and

Paneth the business in initial to extremely the have Marks CBIZ, are with on We and team the adjustments impact to non-recurring line to eliminate of board Making the per quarter, share. estimates. second performing is six or first approximately these share for per the share represented $X.XX costs the months. $X.XX these $X.XX are quarter, for approximately in And costs per costs pleased the

towards items share per view a for XXXX of second in mind with meaningful $X.XX, these quarter in compared per presenting information, With $X.XX. earnings up adjusted earnings comparable XX% this adjusted year the with is share and

adjusted up year, EBITDA with adjustments, included. earnings last year. types adjusted $XXX.X this months, of last six $XXX.X these EBITDA, to up For earnings and numbers this share during Without release $X.XX, a numbers reported a so the of $X.XX I'm we million of issued over items into months GAAP this year detail considering included is earnings adjusted similar six earnings today per is table these that referencing million this XX.X% see same reconciling expect the was this year, year. share morning, Adjusted detail per XX.X% the share and going you increase year the full of the compared call, in can EBITDA per adjusted for

higher marketing During first normalizing levels. talked seeing this the expenses last low of quarter and through expenses the are to that care and benefits, artificially year and levels about level pandemic, into expense of after the health we T&E year,

point are for out seeing points expenses this we that over these XXX margin T&E we on levels XXXX. in level levels lower to than first lower with year. in tax the half experienced a While expense, this increases expected at year most prior expenses, pre-pandemic basis notably experienced are these year, basis XXXX, But represented before versus headwind XXX the of compared income the to

we growth headwinds and intentional new expected As would of with this to continue year. we enhance and costs business planned prospects, present efforts outreach revenue that these clients

costs discretionary Of in course, in are adjusted so I costs, the from ended time. items expense in June, income of and us other to described for year-over-year XXX over I structure The for the our margin basis intentional the mentioned. to results addition T&E leveraging the was represented to structure short items pre-tax months leverage that in increase we points. manage year, variable give Comparing first these basis other points aside ability be cost headwind the this elements XX half our happy cost expenses list down six expense

We to will point XX continue over basis margin. to a we time, increase pre-tax say expect in annual XX to that achieve

recent back, that of exceeded very we our range. higher in pleased As performance are years, end you has that the look

improvement the and year T&E full range, margin this near the despite that for year guidance full our in expense I revised improvement year, lower mentioned. year contemplates headwinds of items margin other end of For XXXX expect we the full the and the

the for capital reported gains we Because GAAP plan the in there operating a with both non-qualified as always, this impact income. in look are As period outlined gains are and of gross significant with losses XXXX year details markets losses, numbers of comparing compared compensation capital release. the deferred margin you in a impact at and accounting with to our is markets

by be is solid. with is was this line reminder, the year, In impacted used very first years. $XXX acquisitions that that The well our closed Cash robust quarter of Stinnett first acquisition to Associates time. we facility acquisition operations business performing with As the call, pre-tax top we in flow payments deployed from a growth. not unsecured we through approximately upsized pending amendment on $XX commented July million, the of of income the margin conference the this extend the announced factor. At the capital million. purposes, $XXX over XXXX was million million was for and for of and of $XXX of unused of maturity our previous including the accomplished on to effective $XXX second capacity. acquisition the newly years approximately June outstanding five month, during transactions million Earlier year, balance Since facility quarter. purposes, XX million $XXX period end including XX, credit upsize closed to have $XXX half & have about payments that by on earnout In This X. this million XXXX, have we this earnout were facility continues

payments of $XX transaction, XXXX. With use in purposes, the acquisition closed we $XX.X $XX.X the XXXX, XXXX, for expect in $XX.X million combined on remainder million over million million Stinnett with transactions, to estimated and XXXX previously approximately approximately in earnout

June This basis months In $XX.X days amortization six million XX, compared addition at with Under versus have X.X a and million five at provides for quarter, for is of Year-to-date continued shares approximately we funds million repurchased was ago. million. basis the the continue during repurchase XXX,XXX to million outstanding to The year. market six through using times was repurchased the XXth capital and $X.X of Bad DSO repurchase repurchase second of of we both $XXX we days XX% open we Approximately sheet was X.X share to program, of acquisitions is common $X.X repurchased approximately the to an the recent $XX To have been months. XX June XXX,XXX EBITDA. ago. shares repurchases. year XXXX, the recap million with XX XX, stock. XX last for a capacity shares compared actively a a XX additional second And end $X.X Since of XXXX. of acquisitions, points of end strategic is versus in quarter through million revenue shares. our at cost expense of Depreciation June debt with XX million compared to the have shares, XXb second first towards shares activity repurchased activity have million a $XX.X for last in since has to total making XXXX. quarter years, was approximately end year. continue the representing X.X million shares, approximately this balance July for spending Capital points nearly of of used the total repurchased we since shares. year leverage the June $X.X plenty with strong, and XXX,XXX

$XX we're this year year XXXX, was full and a CapEx that the the months up of year six XX.X% ago. be For from to million. was effective tax for expecting first rate The approximately XX%

For the rate unpredictable number a this to either continue effective full however, lower year to tax we XX%, expect factors. although this to an close can of higher year, due or be

is second seasonally more the is our ahead, uncertainty. business to upon typically Looking more subject project and dependent of half year

and services continues strong to are our major strong our clients signs benefits point, look provides we we in in employment-driven At metrics are and within through of payroll essential stability recurring at of and to The Demand our and as strong. this in report seeing businesses. services cycles. employment robust in continued for a position economic our steady be reasons. we a in nature the very to of following revenue However, continue many earnings growth for

the group, continuing pace with in seeing gained and increase we are that focused with and investments years business The margins. pressures, strong leverage our enabled we revenue are producers, Insurance recent client coupled we to traction new growth. place particularly costs in systems As underlying Jerry pricing and within in and tools and keep have new cost strong and have us made put to protect is make growth, revenue driving Benefits have business retention commented,

are half expectations full increasing are strong, very XXXX as in and First we follows. year comfortable results

I we within earnings a to to $X.X the adjusted rate a XX% full previous $X.XX XXXX. course, to over and tax increase earnings growth XX%, up reported $X.XX be the as earlier, to in The guidance This XX% between XXXX effective XX% approximately reported previous XXXX. total in year reported XXXX, from this of range GAAP of of expected of up billion expect expected in a an mentioned within We within up for impacted either at can adjusted unpredictable in guidance adjusted share On is over number projecting XX% full by revenue to shares activity per XX% to XX In average of expected range the growth is to count is to year XX% or basis, share XX%. XXXX between of to XX% expect down within of million a increase XX%. of increase per EPS light to earnings the share per for share date, repurchase for over of XXXX. million of the XX.X is XX% weighted fully factors. from adjusted reported range diluted range share

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

Jerome Grisko

you, Ware. Thank

the season. financial the consider metro update we the our of acquisition top discuss to leading I designed area Marks tax Q&A, was In plan accounting component and the acquisition provide When additional prepare key with a with the beginning a Paneth to progress year, announced With our January, the always a growth integration latest in M&A our Paneth, minimize we traditional to want firm of offices Marks Coast. strategy. and Stinnett continues throughout on to & overall the a services a busy of Associates. be timing. CBIZ headquartered for we disruption Paneth joining of and plan during of acquisition, Marks pacing York East our acquisition move to priority brief we at Before the New

move early, were people impact complete benefits our we able some and some to season. integration needed us, busy and behind until systems, especially procedures. payroll, are of quickly now integration, With of our the accelerate that standardization the in includes delay busy the and moving to now areas season and next additional aspects we after phase to those While we and our of like steps which development platforms policies with training operating forward and

a Marks So Denver. integration. in date. Paneth to Oklahoma the additional announced we we million of growth accordion to acquisitions. Associates The add pursuing very I maturity with far, we'll positions $XXX also that and & remain Stinnett more with progress our $XXX based San remain aggressive advisory for businesses pleased and to mentioned, additional & we industries. at our and pursue Stinnett risk compliance point including City, an we facility will in and to sizes amended financial of services, us Earlier the have to Tulsa, our M&A that acquisitions. business credit years recently of later Q&A. out and to as Oklahoma flexibilities includes million, we in five scale and to want agreement that Associates competitive we This very the to our move that to cybersecurity both from remain overall up of our note, million. offices borrowing feature performance date support $XXX this existing said, allows extends latest expanded of us and also as the Ware SOX an On be and continued allows acquisition change business. With capacity services month, across this all Dallas, Houston, Antonio pipeline risk talent provide strong advisory significant numerous of Overall, continues With acquisition, with and

Operator

first comes question-and-answer Instructions] [Operator question with CJS from will Moore We Securities. now Chris session. begin Our the

Christopher Moore

for Thanks guys. morning, couple a questions. Good of taking

talked about you've historically So, recurring revenue. XX%

am recurring, With revenue the at Marks Paneth I terms in correctly? looking acquisition, to or is closer not of that their XX% moving

Ware Grove

Yeah. Ware. is this Chris, Yeah.

right. I you're think

business annual accounting business, that a that. and and recurring audit things related with like core engagements lot then the tax of of engagements is terms In

if second probably But a XX% So, the as is the it's rough bit going that said year in higher think, of forward. more half the I a past, project-based. we've than estimate

Christopher Moore

it. a the comments in dig areas maybe some work of the work how which project the end focus into or we terms further terms are sensitive. Maybe little economic recognizing most just And Got of of is opening a diversified can kind of of markets. in the little bit talk just sensitivity Jerry's terms of bit in and

Jerome Grisko

Chris, Yeah. So, Jerry. it's

So, relate more businesses, of lot our a the market project-oriented with be as this speak speak work our strong that continues advisory we is we offices, do at that with And time. that acquisitions. services to various quite to

really and of the the we that, the that rest those advisory. the visibility will to strong forward variety sentiment are a through a the look promising year, of rest consulting for the types year. of of sold future. continue out as very the So, group this look And We, are services based we of variety remain But services at other we of do the also foreseeable other, those course, that is have on for to time. that provide of

Christopher Moore

just Got to sheet. switch the it. Maybe over balance

can any of impact terms debt the of from remind rising and rate interest environment? just the of expect So, kind us you you

Ware Grove

now on SOFR rate Hi, Ware. Yeah. Yeah. opposed Chris. basis. variable LIBOR. is borrow a It's as to We This

to fix respect that rates, of you So, we you and will rates. made be we just expect have I'll we that remind to rates impacted. are little to with but rising impact yes, at no synthetic But interest that. nearly will, attractive synthetically we underlying if swaps, we've term pretty longer because being million $XXX transition, incremental of

balance variable have portion into a in to extent our is funds the investing also, hedge client of we kind that a And natural fixed. the So, swapped business. we're the of good sheet payroll

will yield As rise are we on It's expense serves balance as dynamics. perfectly against the interest there, hedge side. rates impacted, be a not the those side hedged, sheet the but it income so

Christopher Moore

for Got it. And last one me.

what in you're how trying XXXX? XXXX. first versus in that XXXX generated the free look was expecting at capital maybe you kind cetera, the of flow issues, of Obviously, Just XXXX working versus year, cash compare the half et to

Ware Grove

position. be Yeah. a in very Chris, we similar should

respect Just remember, unusual the in with And settlement like things that. XXXX, we good was an XXXX items couple to year of for costs had us. also, and extraordinarily a

a this timing was year, of and higher there So, year level a that of came flow out compensation variable last from accrued cash perspective.

going factor respect if were to margin in on that, things the strengthening and two those at other underlying year-over-year. than working a about the But year as talked business, where to and from with capital are course, adjustments are of So, not the that, integration business, least things. to the said respect the Having with all those strong, have we we costs they ago. those

underlying But lot a of there's really of the at health question parts. there's for So, the moving pieces your and if drives business, no reason concern there.

Christopher Moore

guys. Sounds good. Appreciate I it it there. leave

Operator

ahead. Andrew next with Blair. William go question Our Nicholas from Please comes

Andrew Nicholas

for you questions. taking Thank morning. Good my Hi.

on is the one environment. of just kind M&A First

in about bit continued all if but pipeline, all activity, has space. You constructively this pricing sponsors of several particularly a past from deals higher given to talked the months the M&A curious if pretty private has changed competitiveness equity the at just over the tick

you that, be on that would just Jerry, comment great. could If

Jerome Grisko

Yeah. Thanks Andrew.

private really rates have come aggressive we in couple dramatic past still them side, since over Insurance well a Financial to change Services say the rates range equity pricing stabilized Interestingly, that kind I on entered, recently pricing over some of seen more number the up pick the years Prior and change the the the a have side gone certainly wasn't really had active returns seen over particular. and have within months. to within there over us not would of models provide our time, they've of Benefits most of somewhat, over space down, mentioned that in but there's has favorable stabilized. there. months. You of months past more steadily on They've been has the say months, XX past wouldn't been that very but yeah, couple the and up past the allow our But we investments. XX there a

changes not certainly Services some dramatic structure, on in So, the side. but changes Financial the pricing

Andrew Nicholas

Great. sounds would that mentioned as over you to more? Thank like business underlying a expand just in Switching the That for second. a bit and maybe the that bellwethers. It for subsegments be helpful. Can benefits employee on exposure being you of I B&IS you consulting that think and color. speak to cyclical payroll

Ware Grove

Yeah. of can processed this to through And our on year-to-date do track are because clients. an environment, numbers. Ware. within indicator we're look Great of of those And kind in seeing question. of And or the can the at Andrew, we any the macroeconomic employment number not that's we levels first as transactions stable the signs and strong I is degradation those you six tell those weakness months. bellwethers

Andrew Nicholas

to question, spend part And that after It Great. macro the on just about really it's then, years little gear increased gains Thanks bit in a your smaller that's Can based understand a last there I within other last my potential little you that overall payroll cross-selling that business, exposure. But starting answer more again. a few bit pick business? for or investment. I are conversation last on or like up but business? time seems of talking share of some and going things a -- does know have

Ware Grove

of couple Andrew. A Yeah. things,

want more from. growth two we've many First that That in client three is platforms growth that of can course, is of to a going that in the exceptional had But the processing core the of coming the able cross-serve had of exactly that but a stable sophisticated side. doing really and years the much for product our as kind to employee not where that's The discussions not cross-serving the our to serve serves there's including for to now kind provide encouraging with able platform targeting payroll those then active past, cross to put that a really for start coming on reason core benefit employee of benefits. mid-market client. probably The we've robust more us, we in X.X, more with we've that we within much out benefits. larger business. we them that us platform having being itself only much that new have we're, be really side many, the now, the our just of but make we business. of client continues transitioned that to all, of the because back to penetrate client, that Early turning being smaller years services an client other with kind employee past, in really on needs. and place with than also sure client platforms said to that's success payroll strategically innings, a clients platform payroll is them, The client around that is the sights that that we've lends job more legacy ago important is from And in profile to had are

Andrew Nicholas

Great. Thank you.

Operator

Instructions] question Sidoti. next Marc [Operator Our comes with from Riddick

Marc Riddick

Good everyone. morning, Hi.

Jerome Grisko

Marc. morning, Good

Ware Grove

Marc. Hi,

Marc Riddick

you a are I was may strength the more in the had done what opportunity, on sort I of So, give could some already. maybe could past back which you of but that have you there. how different benefit if wondering go of I showing are the to little is commentary was to maybe that But what had, the you maybe give certainly, bit some a business things wondering of up pricing. of sort around sort and commentary little you commentary so maybe that that that focus seems put I to behind you indicated, the than the wanted that remarks more to of us if to wanted And prepared you

Jerome Grisko

Great Marc. question. Thanks Yeah.

think So, that do us that other past, years around for pricing. that systems five say the allowed moment. other is would to made haven't the profitability ago, the that greater the accounting are talk our investments side, way, generating of visibility let's of than we visibility, I and our What the side each financial big the in to engagement, probably business certainly processes have substantial Greater firms any the services had time I well. have And from we talked to some compared by to probably and before. and ago, had as into that just the about by a revenue we client the we four, never

those investments. we've So made

and pricing, to we're that since really That in great and what go by advisory in into day, organic to both see also And our profitability steady part allowed continues visibility us -- now engagement. have seeing revenue systems our is reporting the the by and we're us engagement, brought We client, that the increase the the those allows ever that's us we reporting engagements. good now also that those sure share the offices, this pricing the the driving by it of our to that, largely receiving at offices, to right our practice. systems client manager and make engagements that and a to with results the experiencing on information taken we're with work back reporting in did relationship we in that that that and We've level growth margin profitability business. right pricing give

early business portions innings to the used be businesses. also our to So of it's in those starting now into the within early some And stages, side. on we're the other starting of insurance benefits just it and bring

to but a great early game and of organic more growth. as results for So, far us kind really innings, as driving changer come,

Marc Riddick

I then, to to my certainly your thoughts a Thank we Could do anything know my the then, you was a headquarters should really update certainly going from of that's add. for back commentary Thanks. also topic to, out helpful. to made on commentary expense be I near And so, of a frankly that you the could things to if couple see covered I want because there knocked lot sort appreciate have was that and lot a I of quite for I But remarks, really that you you. questions. a quarters in thank prepared and three about to still of wanted for there? about dear as an CapEx. move. give expectations you at to year. you've and up what timing on us thinking And bring advertising your Is looking got you're finally, us your maybe there speed heart, That's

Jerome Grisko

you there end. up I'm broke sorry, bit at a little the Marc,

and that part that's repeat question is The for could you second to the your is, please? one that near dear us, heart of

Marc Riddick

expectations The [indiscernible]. advertising

Jerome Grisko

first. the Take Yeah.

Ware Grove

-- we this every and And refresh a It's it's million $XX $XX furniture maturities. under CapEx pretty We eight various things upgrade to at cycle On nominal business to periodically, that's much where Marc, believe lease driven size, for and Yeah. a do on tenant With what XX that it's million we construction. years like and and of finishes primarily well. to is drives Okay. Ware. year. by our our general building. the that see through the headquarters, you It's as respect going CapEx. and tenant we the facilities

bit to it's you portion into change this million Our kick-in going quarter I gave fourth maybe year $XX third but -- of see year, estimate. incorporates and tenant that improvement full a a in of quarter. the the But a major portion you'll that to not portion would late may that for closer be I estimate not it,

Jerome Grisko

Yeah. around couple, a Marc, advertising. to I'll just that, a color then little and go

in new headquarters, what us future, of means it it's and that office home our around one excited of the about really XXX facility and kind is we're location over our While country. and the our for new of

results. connected you it overall that normal impact expense construction that have within see of balance materially we'll would or And but Ware So, CapEx some it's the the won't as well financial building, the within with sheet spending our overall yeah, said, business.

the our was advertising there. We campaigns. fall going cable and continue even to XXXX second and year of in will have here, a flight bolster in We're think, first around that excited Your half I second we in, also in first the to of had forward. the We're going national advertising. the question flight

those to most dollars having they build the but our on spent we where that that and be in we discussions our we're continue have more to need see larger, and impact, area, continue we brand to continue should and As do get to results. in on you where

Marc Riddick

Excellent. Thank very you much.

Operator

would [Operator the any to Instructions] conference back for further like questions, over no Jerry Showing remarks. I closing turn to Grisko

Jerome Grisko

And opportunity, share analysts our as we to today, our take to as up opportunity do, your always we team. to also shareholders appreciation want you. for and this thank our for and I continued Thank wrap support, to this take

client our those only and in their service we providing team. possible your ourselves our clients from the directly to of dedication entire support most team, behind work to clients. and of exceptional a who to as team our our extension commitment clients commitment to serve those This for our trusted our shared who a them is pride of scenes as result the an be to As there adviser

to our and life. hard six for on first worked how bring day months As has to proud the the performance of our mission team so year, incredibly I I'm every of our our reflect values

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Operator

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

disconnect. now may You

CBIZ (CBZ) 31 Jul 222022 Q2 Earnings call transcript