The Federal government shutdown held down revenue for CBIZ reported net income of $37.6 million for the most recently ended quarter, an increase of 13.5 percent from $35.9 million in last year’s corresponding period. Revenue for the first quarter was slightly less than $270 million, up 1.5 percent from $266.1 million a year earlier.
The shutdown delayed issuance of regulations and that led to delays in issuance of tax software, which impacted the time available for preparation during the quarter. “Those delays affected the entire country,” said CEO Jerry Grisko. He said revenue for extensions would be recognized as work completed in the second and third quarters.
The year-ago first quarter benefited from the sale of two small accounting practices as part of a quarter Grisko described as “incredibly strong”. Grisko said executives are confident in meeting financial guidance for the year of revenue growth of 4 percent to 6 percent over 2019.