Q4 2023 CBIZ Inc Earnings Call
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Good morning, everyone and welcome to the <unk> fourth quarter 2023 results conference call.
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I would like to turn the floor over to Lori and a vigorous director of corporate relations Ma'am you may begin.
Good morning, everyone and thank you for joining us for the fourth quarter and full year 2023 C bench results conference call.
Next year with this call today's press release and Investor presentation have been posted to the Investor Relations page of our website <unk> Dot com.
As a reminder, this call is being webcast.
To a live webcast can be found on our website.
An archived replay and transcript will also be made available following the call.
Before we begin we would like to remind you that during the call management may discuss certain non-GAAP financial measures reconciliations of these measures can be found in the financial tables of today's press release and Investor presentation.
Today's call May also include forward looking statements regarding our business financial condition results of operations cash flows strategies and prospects.
Looking statements represent only estimates on the date of this call and are not intended to give any assurance that future results.
Because forward looking statements relate to matters that have not yet occurred. These statements are inherently subject to risks and uncertainties.
Many factors could cause future results to differ materially and <unk> assumes no obligation to update these statements.
A more detailed description of such factors can be found in our filings with the Securities and Exchange Commission.
Joining us for today's call are Jerry <unk>, President and Chief Executive Officer, and Ware Grove, Chief Financial Officer, I will now turn the call over to Jerry.
Thank you Lori and good morning, everyone. We're pleased to share our fourth quarter and full year results for 2023, and our outlook for the year ahead.
Last year at this time, we reported on record performance and results in 2022.
We are pleased with this momentum continued in 2023.
Despite uncertainty at the start of the year about a potentially challenging business climate ahead, we successfully continued our trend in 2023.
Achieving growth across every major service line of our business.
Over the past year see this posted strong growth achieved new milestones and demonstrated the resilience of our business model in an uncertain environment.
Most notably for the full year total revenue was up 12, 7% organic revenue grew by seven 4% earnings per share was up by 18, 9%.
Adjusted earnings per share was up by 13, 1% and our stock price increased 33, 6%.
The fundamental attributes that define our model, including a blend of a central recurring services combined with more discretionary project based services.
A diverse client base that spans companies of all sizes.
And a broad and growing geographic footprint continued to drive our success.
As we head into 2024, we expect the economic climate to remain favorable for the types of services that we provide to our clients.
Now turning to the performance of our business divisions in 2023.
Our financial services Division demonstrated impressive growth across every major service line, including our accounting and tax advisory and government health care consulting businesses.
Our accounting and tax services remained in high demand, which has allowed us to continue to achieve price increases in excess of our wage increases.
Our work to support clients in securing employee retention tax credit also helped to bolster our results.
Our advisory services also continued to experience robust growth and strong client demand translated into steady production for our private equity advisory business, our risk and advisory valuation and forensic consulting groups.
Demand for our technical accounting services group, a group that specializes in assisting companies and preparing to go public reflected a somewhat muted market for ipos in 2023, we're seeing signs of improvement for these services in the coming year.
Finally, our government health care consulting business finished the year strong in terms of both kicking off project work and securing new business.
We reported on our last earnings call that this part of the business experienced some softness due to a number of large contracts being delayed.
The new work that we were seeing in this space more than made up for these timing changes.
I will remind you that project delays are common when serving certain types of public sector clients and the business continues to navigate these changes well while maintaining strong performance.
Now turning to our benefits and insurance Division where.
Where we built on our momentum coming into the year to achieve strong growth and performance across every major service line.
While the key drivers for growth varied slightly within the four major service lines.
All benefited from high client retention rates, new sales and continued improvements in pricing.
For our employee benefits business growth came from higher starting valuations new business increase contingence and improve client retention rates.
Our producer Count was also up along with another key metric, we monitor average production per producer.
The strong activity from our producers is evident in our full year results and should provide some strong momentum going into 2024.
Moving to our property and casualty business, we experienced growth in both the program and commercial sides of the business.
Higher starting valuations new production strong client retention and trend also bolstered our favorable results.
The retirement and investment solutions business saw growth through increased demand for our actuarial project work.
We're also able to increase our producer pool within this business.
Finally, our payroll business had another strong year of performance driven primarily by demand for our upmarket payroll platform.
Which also included high client retention rates for this service.
We are extremely pleased with the performance of the overall business throughout 2023.
As we look ahead to 2024, we remain confident in our ability to continue to perform well and to capitalize on this momentum.
Based on our strong financial performance over the past three years, the high demand for our services our ability to retain clients the investments to accelerate growth that we've made in the business and our access to capital we once again be providing financial guidance for the year.
With this I will turn it over to Ware Grove, our Chief financial Officer to provide more specific details on our financial performance for the fourth quarter and the full year 2023, and our thoughts on guidance for 2024, where.
Thank you Jerry and good morning to everyone.
Let me take a few minutes to talk about key highlights for the fourth quarter and year to date numbers. We released this morning.
Our business continues to be strong in every major service line within both financial services and within benefits and insurance. We are pleased that results in the fourth quarter and the full year are in line with our expectations.
After encountering some weakness in the first half of 'twenty twenty-three, both the government health care consulting and the California core accounting and tax business recorded strong fourth quarter and second half results.
The first half 'twenty twenty-three contract delays that we encountered within government health care consulting have resolved and the IRS tax filing delays in California moved a large portion of this recurring business from first half into second half of 2023.
With the acquisition of summer set in February of 2023, generating approximately $55 million of annual core tax and accounting services revenue at the end of the third quarter, we guided that we expected the higher portion of core accounting business within our business mix. This year would amplify the seasonal nature of our consolidated.
Our results in the fourth quarter.
Coupled with the impact of higher interest expense in the fourth quarter. This year compared with last year. The loss recorded in the fourth quarter of this year was higher than last year.
Total revenue in the fourth quarter increased by 32, and a half million dollars up 11% over fourth quarter, a year ago. The fourth quarter same unit revenue was up $19.9 million or up by six 8% with acquisitions contributing $12 6 million or four 2% of growth compared with last year.
For the full year total revenue grew by $179.2 million or up by 12, 7% compared with 2022.
Same unit revenue for the 12 months grew by $104 million are up by seven 4% with acquisitions contributing $75 $2 million or five 3% to revenue growth for the 12 months this year compared with last year.
Within financial services for the fourth quarter total revenue was up by 13%.
Same unit revenue for the fourth quarter was up by seven 1%.
For the 12 months total revenue within financial services grew by 14, 9% and same unit revenue for the 12 months was up by seven 6%.
We experienced strong revenue growth across all lines of services, including core tax and accounting Advisory services and government health care consulting services for both the fourth quarter and for the 12 months and 23 compared to 22.
Within benefits and insurance total revenue in the fourth quarter of twenty-three grew by five 7% and same unit revenue grew by four 8%.
For the full year total revenue grew by six 9% with same unit revenue growing by six 5%.
Every major line of service within our benefits and insurance group recorded revenue growth for both the fourth quarter and for the 12 months, we continue to see strong client retention and new client production.
The investments we have made in recent years to hire and increase the number of new business producers continue to gain traction we remain committed to further enhancing growth capabilities within the benefits and insurance group and we will continue to make investments in hiring and in developing additional producers in 'twenty 'twenty four.
On February 1st of twenty-three, we acquired Indianapolis space, Somerset C. P. H N advisors with estimated annual revenue of approximately $55 million there.
There are transaction closing costs, plus one time integration related expenses associated with this transaction.
In a similar matter to reporting New York based marks Panther acquisition costs in 2022 we're reporting and an adjustment to eliminate Somerset acquisition related costs from GAAP reported results to report adjusted results this year.
We are extremely pleased to have both the Somerset team on board this year and the Mark Spanish team now in its second year and both are performing in line with our expectations.
In addition to these acquisition related expenses. This year, we reported a gain of $1.5 million related to the sale of technology assets and our financial services practice group in the third quarter and a gain of $1 $4 million, resulting from the receipt of contingent payments in the fourth quarter related to the last year.
All of our book of business within benefits and insurance.
Last year, we recorded a gain of $2.4 million related to this transaction. These.
These gains were recorded in other income and represented approximately two pennies per share for the fourth quarter of 'twenty, three and four cents per share and a 22.
With a view towards presenting meaningful comparable information eliminating the impact of these gains and eliminating the acquisition related expenses adjusted earnings per share. This year is $2.41 up 13, 1% compared with adjusted earnings per share of $2.13.
Last year.
Considering these same adjustments adjusted EBITDA, which serves to eliminate the impact of both tax and interest cost was $223 $8 million for the 12 months this year up 17.7% over adjusted EBITDA of $191 million last year.
A table reconciling reported GAAP numbers to these adjusted earnings per share and adjusted EBITDA numbers that I'm referencing is included in the earnings release issued this morning. So you can review the detail of the items included to arrive at adjusted numbers.
We have previously talked about the level of health care and benefits travel and entertainment expenses and marketing expenses that are normalizing the higher levels post pandemic.
As we continue to restore and expand outreach to clients and prospects by design travel and entertainment expenses are trending higher and we have also restarted several media campaigns and our marketing programs. This year.
Some of you may recall seeing the CBS television spots positioned on C. N B C. P. G a golf events and in other spots last fall for 2023 collectively these expenses represented a 20 basis point headwind to margin on pre tax income compared with the prior year.
We continue to project that these expenses will settle in at approximately 100 basis points lower than pre pandemic levels, but for a period of time the year over year comparison has presented a headwind.
As always details of the impact of accounting for gains and losses in our nonqualified deferred compensation plan are outlined in the release.
Because we are comparing a period in 2022 with capital market losses, compared with capital markets gains and this year. There is a significant impact of the GAAP reported earnings as you look at both gross margin and operating income and you can find this information noted in our release.
As a reminder, pre tax income margin is not impacted by this accounting factor. We will continue to say that over time, we expect to achieve a 20 to 50 basis point annual increase in pre tax margin.
In any given year margin improvement may be either higher or lower for a number of reasons, including the impact of the expense level headwinds in 'twenty three that I mentioned earlier.
As you look back over time, we are very pleased that our performance has been near the higher end of that range.
Now turning to cash flow items and balance sheet.
At December 31, 23, he's the balance outstanding on our 600 million dollar unsecured credit facility was approximately $312 million with about $272 million of unused capacity.
With leverage of approximately 1.5 times adjusted EBITDA at year end as calculated in our $600 million credit facility. This provides plenty of capacity continue to boat to continue both strategic acquisitions and provides the flexibility to continue with share repurchases.
In 2023, including the Somerset acquisition, we completed a total of five acquisitions we.
We used approximately $108 million for acquisition purposes, including earn out payments on acquisitions that were closed in previous years.
Including the E B K transaction, which closed earlier this month combined with estimated earn out payments on previously closed acquisitions for acquisition purposes, we expect to use approximately $67 million in 2024 $36 million in 'twenty twenty-five 12 million.
And 'twenty 'twenty, six and approximately $2 million in 'twenty 'twenty seven.
Since the end of 2019, we have closed 21 acquisition transactions and we have deployed approximately $394 million of capital for acquisition purposes, including earn out payments over that time.
We continue to actively repurchase shares in 2023 for the full year, we repurchased approximately 1.3 million shares in the open market at a cost of approximately $65 million.
Since the end of 'twenty and 19, we have purchased a total of approximately 9.4 million shares in.
And that represents about 17% of shares outstanding compared to the end of 2019.
Approximately 3300 $42 million of capital has been used towards this repurchase activity and the weighted average share count has been reduced by approximately nine 6% since the end of 2019.
Days sales outstanding at year end was 78 days compared with 74 days a year ago.
Bad debt expense for 2023 was 10 basis points of revenue compared with eight basis points a year ago.
Depreciation and amortization for the fourth quarter was $9 $3 million compared with $8 $2 million last year.
Full year, depreciation and amortization was approximately $36 million compared with $33 million a year ago. The.
The increase in depreciation and amortization is primarily driven by amortization related to acquisition activities.
Capital spending for the fourth quarter was $4 million and was $23 $1 million for the 12 months of 2023, the higher capital spending in 'twenty three was driven by tenant improvements and furniture related to several significant office moves, including our move to the new headquarters facility during the fall.
Quarter.
Capital spending normally runs within a $10 million to $12 million range annually, and we expect spending closer to that level in the years ahead.
As a reminder, we are a major tenant with a long term lease in our new headquarters building, we are not an owner of the building.
The expense of the new headquarter space is no higher than had we renewed the prior lease and updated the space we previously occupied.
The cost is in line with the average cost of the 127 locations, we occupy across the U S. In the fourth quarter compared with a temporary bridge space. We occupied previously the cost was slightly higher but there is no material impact in our fourth quarter results.
The effective tax rate for the 12 months and 23 was 27, 3%.
Up from 25, 5% a year ago. This rate was slightly lower than the 28% rate we had guided for the full year, primarily due to several favorable items that are unique to 2023 that we were able to recognize in the second half of the year.
The increase in the effective tax rate from 'twenty two to 'twenty three was primarily driven by the exploration of provisions associated with the tax Reform Act a 2017.
Looking ahead to 2020 for the recurring and a central nature of many of our services provide stability through economic cycles.
As we look at employment driven metrics without our benefits and in our payroll businesses. We are seeing continued signs of steady employment within our clients.
The tools and systems, we have put in place in recent years have enabled us to increase pricing and keep pace with underlying cost pressures and we expect the same dynamic entering 2024.
Should we encounter softness in revenue or client demand, we have a number of variable items in our cost structure and we can take actions to protect margins.
The investments we are continuing to make in new business producers, particularly within our benefits and insurance group have gained traction and we are seeing strong new business, coupled with strong client retention that is driving revenue growth.
Now with an eye on the continuing macroeconomic risks we are projecting further steady growth in 'twenty 'twenty four.
In addition to our positive outlook for organic growth.
We always have an active pipeline of potential future acquisitions.
As a practice however, due to the unpredictable nature of acquisition activity. Our annual guidance does not include the future impact of acquisition activity that has not yet closed.
At this early point in 'twenty 'twenty four full year guidance is largely driven by organic growth expectations.
Beyond organic growth the acquisition of <unk>, which closed effective February one this year with $8 $9 million of annual or annualized revenue and other relatively small midyear 2023 acquisitions will contribute modestly to revenue growth in 'twenty 'twenty four.
Of course, we update guidance throughout the year to reflect the impact of any significant acquisition activity as it occurs throughout the year.
So with this in mind, we are comfortable to provide full year 2024 expectations as follows.
We expect total revenue to increase within a range of 7% to 9% over the $1.59 billion reported in 2023.
On an adjusted basis, we expect 'twenty 'twenty four adjusted earnings per share to increase within a range of 12% to 14% over the adjusted earnings per share of $2 41.
We reported in 'twenty two 'twenty three.
GAAP reported earnings per share is expected increase within a range of 13% to 15% over the $2 39 reported in 2023.
The effective tax rate for the full year of 'twenty 'twenty four is expected to be approximately 28%, which is slightly higher than the 27, 3% rate. We just reported for 2023.
Of course, the effective tax rate can be impacted either higher or lower by a number of unpredictable factors.
And fully diluted weighted average share count is expected within a range of 50 to 55 million shares for the full year of 'twenty 'twenty four.
So with these comments I'll conclude and I'll turn it back over to Gerry. Thank you where before we move on to Q&A I'd like to provide a brief update on our M&A results for the year.
Interest in M&A within our industry remains high and CB is a strong performance and success with integrating a large number of firms are bearing sizes and profiles continues to position us as an acquirer of choice.
We began 2023 with a healthy pipeline of M&A opportunities and we are pleased that we were able to complete three acquisitions in two tuck in transactions totaling just over $67 million in annualized revenue.
These transactions include Somerset C P as an adviser.
Highly regarded accounting attacks firm headquartered in Indianapolis, Indiana.
Somerset was a platform acquisition for us in that it allowed us to enter an attractive and growing market with size and scale.
We've been pleased with the results from some reset so far and are likewise pleased with our progress on integration.
We also acquired pivot point security in 2023, and advisory firm specializing in cyber and information security headquartered in Hamilton, New Jersey.
We have been pursuing an acquisition to broaden our cyber security services and expertise for some time given the growth in demand for these kinds of services we.
We are pleased how this group has already complemented our existing risk advisory services practice.
Both Somerset and pinpoint are excellent examples of how we acquire firms that bring strategic value to see biz.
And strengthen the breadth and depth of our services, while adding value valued expertise and capacity.
And just last week, we announced the acquisition of Erickson Brown and cluster.
C P. A firm located in Colorado Springs, Colorado that.
That will expand our reach across the state of Colorado and complement our growing Denver based practice.
E. BK provides a broad range of accounting and tax services focused on small middle market businesses. We're happy to welcome the E. P. A team the team see this.
With that we'll move on to Q&A.
Ladies and gentlemen at this time, we'll begin the question and answer session.
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Our first question today comes from Chris Moore from CJS Securities. Please go ahead with your question.
Hey, good morning, guys. Congrats on another another great year, maybe I'll, just start with where Jerry left off on M&A. Just curious in terms of the pipeline are there. Many you know 50 million plus acquisitions that are in that pipeline at this point in time.
Yes, Chris.
We don't comment as you know on the on the exact pipeline size and transactions size of the of the companies in the number in there, but what I would say is we remain pleased with the amount of revenue revenue certainly.
In aggregate within that pipeline and the number of transactions represented by that.
By that pipeline so deals common deals go we.
We were pleased with what we were able to accomplish last year and pretty pleased with what we're seeing so far in the pipeline.
Got it I appreciate that.
Maybe we'll just talk a little bit about visibility I mean, given that backdrop. This time last year. There were no more rate increases will likely versus today you know at some point in time, we'll probably get some rate cuts.
Can you talk a little bit about visibility today versus this time last year.
Yes, so Chris the nature of the business is.
Obviously, a large percent of it of essential recurring services. So so you know kind of through the busy season, we remain very.
Pleased with what.
The business of what we're seeing and what we expect to do through that period of time as we sit here today, we don't obviously have as much visibility into the back half of the year, but we look at the factors like you said, we think interest rates will stabilize we see.
This optimism among our clients. So we sit here today I would say equally optimistic and maybe even slightly more optimistic than we were sitting here at this time last year.
The one the one uncertainty being obviously, it's an election year you never know how that's going on.
Consumer confidence.
Got it helpful I was going to ask that as well.
Maybe just one more for me you talked about pricing during and financial services Stern fiscal 'twenty three was above wage increases is pricing you know.
Now back to more normal.
2% to 3% for the year for financial services or just anything you can say in terms of what pricing looks like there yeah I'll comment on two things first of all Chris as you know, we've been able to more than offset.
Any wage increases with pricing we're seeing.
Some easing in the labor pool, which are bringing wage increases down a little bit you've seen that kind of across the board. So obviously, that's the that's the labor part of it as far as prices are concerned.
Yet to be seen we still expect to be able to go out with favorable pricing this year.
And as you know we've built considerable processes systems reporting infrastructure around our ability to methodically analyze our pricing within an office within a client by service line. So we still think that theres considerable opportunity on the pricing side.
And as you know we've built considerable processes systems reporting infrastructure around our ability to methodically analyze our pricing within an office within a client by service line. So we still think that theres considerable opportunity on the pricing side.
Got it I really appreciate it I'll leave it there thanks guys.
Our next question comes from Andrew Nicholas from William Blair. Please go ahead with your question.
Hi, good morning, Thanks for taking my question.
Wanted to first follow up on that last question on pricing.
Jerry you said considerable opportunity.
I imagine that that's specific to 'twenty four but maybe if you could talk about kind of the medium term pricing opportunity I know in prior years, you've had some benefit from the investments on that side and maybe what you've described as some catch up pricing.
I was under the impression that that's largely.
Out of out of the equation at this point, if you could kind of respond to that and talk about maybe medium term price expectations that'd be helpful.
Yeah, Andrew when I say considerable opportunity it never stops right. So so the pricing disciplines that we have the systems and processes the tools, they're not fully embedded yet in marks pan if obviously that that is a more recent acquisition or summer set even more recent so we have opportunity there.
We also go through our client.
Profiles and identify clients that that may not.
Fit the profile of a client that we can serve.
In a profitable way code those clients bring a different profile client into the fold and being pursue pricing with those clients as well. So I think this is an ongoing.
I think I know this will be an ongoing focus of <unk>.
<unk> and our ability to continue to bring pricing. So I think I think midterm look some is positive.
Got it that's helpful and then.
Wanted to ask a question I think you you touched on easing labor markets can you kind of address capacity constraints at Seabee is broadly do you feel like you're properly staffed for what sounds like pretty uniformly strong demand from your clients and maybe.
How easy is it to find talent and in the current environment.
Yeah, Let me start here, Andrew Labor is as far as the 25 years I've been in this industry labor has always been tough to find right Oh always always challenging to find qualified experienced labor with that said you've seen some of the layoffs at the big four that's obviously leaves.
Easing the labor demands.
And the labor pool, we've seen some of that amongst some of the larger firms as well other larger firms.
So right now and by the way our attrition rate or retention rate is is even higher today.
Our I'm sorry, our retention rates are even higher today are more favorable today than they were pre COVID-19. So so we're able to retain people at a more favorable rate, we think the labor pool and the other side is easing a little bit which allows us to attract and recruit a little bit more favorably. So all of those things are are positive for us and yes, you are correct.
We feel confident today that we have.
We're adequately staffed to be able to take advantage of the demand that we have for the services.
Great and then maybe if I could ask one last one on the M&A environment. It sounds like you're pretty constructive on the pipeline and what makes it up can you talk a little bit about.
Pricing, there where multiples have trended and you know there's a another private equity sponsor investment in this space here recently, just just wondering if you could maybe respond to the potential impact from from that on your business. Thank you.
Yes, Andrew Great question, Here's what I would say below that the large platforms in your in your you know the transaction that was recently announced fits into that category very large firm large platform acquisition I would say below the large platforms pricing hasn't moved considerably.
Over the past couple of years I mean, it might it might have ticked up a quarter.
25 bps or 50 bps.
Sure.
Certainly the larger platform transactions are trading at considerably higher multiples and it's really a scarcity factor.
And so as you would expect their trading higher but in the types of transactions that we typically pursue we haven't seen material pricing differences.
Yeah.
Thanks Jerry.
Once again, if you would like to ask a question. Please press star one.
All your questions you May press star two.
Hey, good morning.
Mark Hi, Mark.
So wonder if you could share a little a bit of of.
Have your views as to some of the if there's a much in the way of differentiation of client behavior and demand drivers in it.
In particular, whether that's an industry vertical type thing or a regional mix and also I was wondering if you could talk a little bit about the thoughts around sort of the project base.
Our work I mean, you touched on in his prepared remarks around some of the some of the inbox you, but maybe you can give a little bit of color as to sort of maybe what folks are willing to move forward on or maybe if youre seeing any changes that sort of.
Signal toward green shoots and alike.
Yeah, I'll take I'll take the first part of it and I will turn to wear for the second part of it but as far as clients are concerned client sentiments are concerned as you know one of the very attractive attributes of CB is is that we're not overly concentrated in any particular industry or any particular geography. So we are we are seeing we serve largely a kind of a middle market client.
We have clients on either side of that of course that middle market client tends to be optimistic by nature tends to be resilient and we heard that in our most recent client sentiment survey is that.
I characterize it as cautiously optimistic I think there as interest rates start to normalize that's a positive.
And in that client base, so long as they understand kind of what the landscape looks like.
They they tend to then.
Invest forward and invest in growing their businesses. So all of that's positive including for.
For the outlook for the more project oriented work, we do if we have a.
More optimistic proactive client base there they tend to turn to us to help them evaluate.
The types of projects that Theyre considering.
Where do you want to talk a little bit more about yeah. Yeah. The only other thing about the advisory business I would remind you of is a good share of that tends to be recurring and repetitive for example.
The internal audit co source and Sox consulting tends to be more long term year after year as does the valuation work or at least pieces and parts of the evaluation work are repeated annually on some of the project work that's focused on private equity or venture capital IPO readiness and things like that we see.
Bit of ebb and flow.
But we've had a very strong year.
Collectively in that group and we've seen a bit of a rebound in those two pockets that I just mentioned so we look at 2024 with some optimism at this point.
Great and then the last one for me.
Sort of curious as to if there are any timing discrepancies around tax filing that we should be thinking about this year I know, we had this last year and well it seems like you've kind of had a little bit of it almost every year right.
Four or five years I was sort of curious as to whether or not there was any particular call out what should be thinking about or if this is more traditional as far as the timing of that.
As far as we know this should tee up as a relatively normal.
Year for us.
Keep an eye on all the rains and floods on the West Coast, We don't know.
But just remember that if these things do occur it really represents a shift seasonally not a reduction in the business.
Right right.
Excellent. Thank you so much thanks Mark.
And ladies and gentlemen at this time I'm showing no additional questions I'd like to turn the floor back over to management for any closing remarks.
Thank you as we wrap up today I just want to thank our shareholders and analysts as we always do for joining the call and for your continued support and in management and in the company.
I also want to take this opportunity to recognize our team as many of you listen in on the calls on a regular basis.
I started the call today by reporting on our very strong performance and results for the prior year of 2023.
It was a year that included a number of important milestones and achievements.
Among them and one that I'm, particularly proud of is setting a new record for workplace awards in.
In 2023, CBS was recognized with over 100 workplace awards, most of which are based on anonymous feedback directly from our team members.
Embedded in our company's vision statement is a commitment to strive to be our teams employer of choice.
And these awards are a testament to that commitment the commitment of each of our team members to support each other and to the exceptional work that we do for our clients into the strength of our culture.
Two our team I'm grateful for your support proud of all that we've accomplished together and even more excited for a brighter future.
Thank you and enjoy your day.
Ladies and gentlemen, with that we'll conclude today's conference call and presentation. We thank you for joining.
You may now disconnect your lines.
Okay.