CBIZ, Inc. (CBZ) has reported 14.27 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $24.87 million, or $0.45 a share in the quarter, compared with $21.77 million, or $0.41 a share for the same period last year. Revenue during the quarter grew 7.68 percent to $241.46 million from $224.24 million in the previous year period. Gross margin for the quarter contracted 40 basis points over the previous year period to 20.17 percent. Total expenses were 83.47 percent of quarterly revenues, down from 84 percent for the same period last year. This has led to an improvement of 54 basis points in operating margin to 16.53 percent.
Operating income for the quarter was $39.92 million, compared with $35.88 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $48.30 million compared with $43.27 million in the prior year period. At the same time, adjusted EBITDA margin improved 71 basis points in the quarter to 20 percent from 19.30 percent in the last year period.
Jerry Grisko, CBIZ president and chief executive officer, said, "We are pleased with our performance in the first quarter. Total revenue grew by 7.7% and our operating leverage resulted in a 14.8% increase in income from continuing operations. The six acquisitions we made in 2016 are performing very well, we are continuing to experience strong organic revenue growth within our core accounting and government healthcare consulting services, and we are seeing improved results in our benefits and insurance segment."
CBIZ, Inc. expects revenue to grow in the range of 6 percent to 8 percent for the financial year 2017.
Operating cash flow remains negativeCBIZ, Inc. has spent $13.26 million cash to meet operating activities during the quarter as against cash outgo of $17.16 million in the last year period. Cash flow from investing activities was $48.85 million for the quarter, up 172.64 percent or $30.93 million, when compared with the last year period.
The company has spent $36.65 million cash to carry out financing activities during the quarter as against cash outgo of $0.04 million in the last year period.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
