Cleveland (July 30, 2004) — Citing depressed operating margins as a result of costs to settle long-standing litigation and higher overhead due to additional hires in its wealth management units, accounting firm consolidator Century Business Services Inc. reported a 27 percent plunge in second-quarter profits, to $2.6 million, for the period ended June 30.
The roll-up, headquartered here, also said that an underperforming unit contributed to the fall in its second-quarter net income.
Meanwhile, second-quarter revenues rose roughly 2 percent, to $127.2 million, while same-unit revenue rose 3.2 percent, to $3.9 million.
Profits for the six-month period hit $14.3 million, a 3 percent jump from the prior year, while systemwide revenues rose nearly 3 percent to $274.8 million.
During the second quarter of 2004, CBIZ said it completed a tender offer resulting in the repurchase of approximately 7.5 million shares of its common stock for a total cost of approximately $37.5 million.
— WebCPA staff
