CBIZ (CBZ), a diversified services company, has announced a 33.23 percent plunge in profit for the quarter ended Jun. 30, 2014. The company earned $6.11 million or $0.12 a share in the second-quarter compared with $9.15 million or $0.18 a share a year ago. Non-GAAP earnings per share came in at $0.22, when analysts expected $0.13.
Revenue during the second-quarter climbed 5.03 percent to $180.88 million from $172.23 million in the last year period.
Gross margin contracted by 200 basis points over the last year period to 10.27 percent. Total expenses as a percentage of revenues increased to 94.32 percent from 92.17 percent in the same period last year. That has resulted in contraction of 215 basis points in operating margins to 5.68 percent.
The company reported operating income of $10.27 million, compared with $13.49 million in the previous year period.
As on Jun. 30, 2014, the company's cash balance stood at $3.95 million, up 3.32 times or $2.76 million from Jun. 30, 2013.
Steven L. Gerard, CBIZ chairman and CEO stated, ''We are pleased to record stronger revenue growth in the second quarter, and we expect stronger organic growth prospects in the second half of 2014.''
In 2014, the company expects continued improvement in same-unit revenue growth rates, total revenue to grow within a range of 5% to 7%, and diluted earnings per share from continuing operations to grow within a range of 15% to 18% over 2013. Cash flow will continue to be positive, and adjusted EBITDA is projected to increase within a range of 8% to 12% over the $75.6 million reported for 2013.
Shares of the company declined $0.17 or 1.97 percent to settle at $8.46 on Monday.