The Federal government shutdown held down revenue for CBIZ for the first quarter ended March 31. That means revenue from many return extensions was pushed into next two quarters while the CBIZ quarter faced comparsion to a strong quarter a year ago, the company said this week.

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.

Last modified on Tuesday, 30 April 2019
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