$CBZ

CENTURY BUSINESS SERVICES INC

CIK:0000944148|SEC Filings

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Statement of Comprehensive Income [Abstract]
Revenue	$ 2,757,991	$ 1,813,472	$ 1,591,194
Operating expenses	2,402,598	1,631,003	1,367,990
Gross margin	355,393	182,469	223,204
Corporate general and administrative expenses	121,383	108,753	57,965
Operating income	234,010	73,716	165,239
Other income (expense):
Interest expense	(107,215)	(34,379)	(20,131)
Gain on sale of operations, net	711	4,932	176
Other income, net	33,329	13,538	21,019
Total other income (expense), net	(73,175)	(15,909)	1,064
Income before income tax expense	160,835	57,807	166,303
Provision for income taxes	45,391	16,769	45,335
Net income	$ 115,444	$ 41,038	$ 120,968
Earnings per share:
Basic (in dollars per share)	$ 1.84	$ 0.78	$ 2.42
Diluted (in dollars per share)	$ 1.83	$ 0.78	$ 2.39
Basic weighted average common shares outstanding (in shares)	62,909	52,375	49,989
Diluted weighted average common shares outstanding (in shares)	63,240	52,661	50,557
Comprehensive income:
Net income	$ 115,444	$ 41,038	$ 120,968
Other comprehensive income (loss):
Net unrealized gain on available-for-sale securities, net of income tax expense of $88, $182 and $403	222	457	1,013
Net unrealized loss on interest rate swaps, net of income tax benefit of $1,568, $287 and $952	(4,714)	(989)	(2,821)
Foreign currency translation	(18)	(27)	(18)
Total other comprehensive loss	(4,510)	(559)	(1,826)
Total comprehensive income	$ 110,934	$ 40,479	$ 119,142

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Cash flows from operating activities:
Net income	$ 115,444	$ 41,038	$ 120,968
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on sale of operations, net of tax	(711)	(4,932)	(176)
Depreciation and amortization expense	98,270	48,060	36,269
Bad debt expense, net of recoveries	7,290	3,792	1,551
Adjustment to contingent earnout liability, net	2,588	6,993	2,743
Deferred income taxes	4,632	(8,621)	11,273
Stock-based compensation expense	26,004	13,836	12,286
Amortization of deferred financing fees	5,472	1,259	472
Other, net	5,139	(1,129)	(2,837)
Changes in assets and liabilities, net of acquisitions and divestitures:
Accounts receivable, net	(27,096)	48,218	(36,093)
Other assets	(22,936)	2,809	(6,626)
Accounts payable	443	(18,846)	2,210
Income taxes payable	17,148	(7,544)	(5,918)
Accrued personnel costs	14,202	(5,830)	2,711
Other liabilities	(53,404)	4,589	14,674
Net cash provided by operating activities	192,485	123,692	153,507
Cash flows from investing activities:
Business acquisitions and purchases of client lists, net of cash acquired	(1,625)	(1,087,521)	(53,110)
Purchases of client fund investments	(43,375)	(23,210)	(14,122)
Proceeds from the sales and maturities of client fund investments	39,691	21,923	18,465
Proceeds from sales of assets and divested operations	1,530	7,131	3,059
Change in funds held for clients	(305)	0	0
Additions to property and equipment	(16,959)	(12,914)	(23,052)
Other, net	5,190	(34,692)	(10,633)
Net cash used in investing activities	(15,853)	(1,129,283)	(79,393)
Cash flows from financing activities:
Proceeds from bank debt	1,480,100	2,487,900	1,224,000
Payments of bank debt	(1,428,600)	(1,379,400)	(1,177,300)
Deferred financing costs	(983)	(20,654)	0
Payment for acquisition of treasury stock	(160,076)	0	(65,378)
Indirect repurchase of shares for minimum tax withholding	(7,844)	(11,508)	(8,448)
Changes in client funds obligations	30,810	16,035	(13,574)
Payment of contingent consideration of acquisitions and client lists	(58,682)	(56,760)	(45,175)
Proceeds from exercise of stock options	0	0	8,764
Other, net	(437)	0	0
Net cash provided by (used in) financing activities	(145,712)	1,035,613	(77,111)
Net increase (decrease) in cash, cash equivalents and restricted cash	30,920	30,022	(2,997)
Cash, cash equivalents and restricted cash at beginning of year	187,170	157,148	160,145
Cash, cash equivalents and restricted cash at end of year	218,090	187,170	157,148
Reconciliation of cash, cash equivalents and restricted cash to the Consolidated Balance Sheets:
Cash and cash equivalents	18,290	13,826	8,090
Restricted cash	38,234	38,661	30,362
Cash equivalents included in funds held for clients	161,566	134,683	118,696
Cash, cash equivalents and restricted cash at end of year	218,090	187,170	157,148
Supplemental disclosures of cash flow information:
Cash paid for interest	105,429	25,686	19,127
Cash paid for income taxes, net of income tax refunds	$ 23,577	$ 37,537	$ 39,976

CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands

Dec. 31, 2025

Dec. 31, 2024

Current assets:

Cash and cash equivalents

$ 18,290

$ 13,826

Restricted cash

38,234

38,661

Accounts receivable, net

555,995

534,858

Other current assets

79,693

72,528

Current assets before funds held for clients

692,212

659,873

Funds held for clients

207,037

175,853

Total current assets

899,249

835,726

Non-current assets:

Property and equipment, net

81,242

88,163

Goodwill and other intangible assets, net

2,869,790

2,945,470

Assets of deferred compensation plan

186,870

167,170

Right-of-use asset

334,048

393,512

Other non-current assets

38,329

40,842

Total non-current assets

3,510,279

3,635,157

Total assets

4,409,528

4,470,883

Current liabilities:

Accounts payable

90,934

90,646

Income taxes payable

11,008

Accrued personnel costs

197,534

172,759

Contingent purchase price liability

30,035

61,164

Lease liability

64,674

60,549

Total short-term debt

^[1]

66,372

66,177

Other current liabilities

68,299

78,579

Current liabilities before client fund obligations

528,856

529,874

Client fund obligations

206,738

175,928

Total current liabilities

735,594

705,802

Non-current liabilities:

Total long-term debt

^[1]

1,389,552

1,333,755

Income taxes payable

3,009

2,193

Deferred income taxes, net

7,141

10,880

Deferred compensation plan obligations

186,870

167,170

Contingent purchase price liability

10,213

35,803

Lease liability

307,905

372,586

Other non-current liabilities

7,177

62,711

Total non-current liabilities

1,911,867

1,985,098

Total liabilities

2,647,461

2,690,900

STOCKHOLDER EQUITY

Common stock, par value $0.01 per share; shares authorized 250,000; shares issued 144,654 and 137,945; shares outstanding 54,380 and 50,198

1,447

1,380

Additional paid-in capital

1,830,866

1,791,863

Retained earnings

1,011,566

896,122

Treasury stock, 90,274 and 87,747 shares

(1,078,521)

(910,601)

Accumulated other comprehensive (loss) income

(3,291)

1,219

Total stockholders’ equity

1,762,067

1,779,983

Total liabilities and stockholders’ equity

$ 4,409,528

$ 4,470,883

[1]	Reflects the net debt for the Term Loan and Revolving Credit Facility with the associated debt issuance costs in short-term and long-term liabilities. See Note 10. Debt and Financing Arrangements for further discussion of the short-term and long-term debt.