Clark/Bardes Consulting Exceeds First Quarter Estimates With Record Performance

New Business Revenues Drive Quarterly EPS of $0.49



Apr 30, 2001, 01:00 ET from Clark/Bardes Consulting

    BARRINGTON, Ill., April 30 /PRNewswire/ -- Clark/Bardes Consulting
 (Nasdaq: CLKB), a national firm providing executive compensation planning,
 benefit services and funding alternatives to U.S. corporations, banks and
 healthcare organizations, today announced first quarter 2001 revenues of
 $66.0 million, up 112.0% from revenues of $31.1 million in the first quarter
 of 2000. First quarter operating income before amortization expense (EBITA)
 was $14.4 million, a 174.9% increase from the comparable 2000 period.
 Clark/Bardes Consulting reported net income for the first quarter of
 $6.2 million, or $0.49 per diluted share versus net income of $1.8 million or
 $0.18 per diluted share for the same period last year. The company had
 previously issued earnings guidance of $0.41 per share for the quarter.
 
     First Quarter Highlights
     -- New business revenues were $40.1 million, up 137.0% from first quarter
        2000
     -- Renewal and other revenues increased 82.2% to $25.9 million
     -- EBITA margin was 21.9% compared to 16.9% in first quarter 2000
     -- Record first quarter net income and EPS results of $6.2 million and
        $0.49 respectively
     -- Completed two acquisitions -- Partners First and Rich / Florin
        Solutions, Inc.
     -- Established a new corporate identity and company-wide brand change
 
     Financial Summary of Operations ($ in millions except per share amounts)
 
                                                         Three months ended
                                                              March 31,
 
                                                         2001           2000
 
     Total Revenue                                      $66.0          $31.1
     Gross profit                                        39.1           20.3
     EBITA                                               14.4            5.3
     Net income                                           6.2            1.8
     EPS (Diluted)                                      $0.49          $0.18
 
                                                        As of          As of
                                                      3/31/01       12/31/00
 
     Total Debt (Millions)                              $68.3          $64.6
     Debt/Capitalization ratio                          36.4%          36.5%
 
     Total revenues for the quarter ended March 31, 2001 were $66.0 million, up
 112.0% from revenues of $31.1 million in first quarter 2000. The Company's
 revenues benefited from prior year acquisitions, and an extremely strong sales
 quarter from the Clark/Bardes Consulting -- Compensation Resource Group
 division led by Bill MacDonald. New business revenue during first quarter 2001
 increased 137.0% to $40.1 million compared to the first quarter of 2000.
 Renewal revenues in the first quarter totaled $25.9 million, an increase of
 82.2% over the comparable period in 2000.
 
     Quarterly results
       (000's)              3/31/01       3/31/00   Difference      % Change
 
     New sales                $40.1         $16.9        $23.2        137.0%
     Renewals and other       $25.9         $14.2        $11.7         82.2%
 
     Gross profit was higher for the quarter at $39.1 million, versus
 $20.3 million in first quarter 2000. EBITA increased 174.9% to $14.4 million
 from $5.3 million in the same period last year. Pre-tax income was
 $10.5 million, a 243.8% increase from first quarter 2000. The Company had an
 effective income tax rate of 41.1% for the quarter, which was higher than
 expected and reflects disproportionate income generation from entities
 residing in locations with high state income tax rates. After-tax net income
 was $6.2 million or $0.49 per diluted share versus net income of $1.8 million
 or $0.18 per diluted share in first quarter 2000. Earnings per share is based
 on 12.8 million diluted shares outstanding for the quarter, which reflects the
 Company's private placement of 1.9 million shares in September 2000 and shares
 issued for acquisitions; as compared to 9.9 million diluted shares outstanding
 for first quarter 2000.
     "We were expecting robust first quarter results, due to the acquisition of
 Compensation Resource Group, which has considerable renewal revenues that are
 recognized in January. However, our performance this quarter well exceeded our
 expectations due to our success in closing new business and in controlling
 operating expenses," commented Tom Wamberg, Chairman and Chief Executive
 Officer of Clark/Bardes Consulting. "Our corporate benefits sales were
 particularly strong, complimenting the solid performance from our other
 markets. Integration efforts are continuing to receive a high priority, and
 are paying off for us. We are also pleased with our latest acquisitions, and
 the further penetration they provide in our existing markets".
 
     Outlook
     "Our first quarter results reinforce our confidence that we are on track
 financially," stated Tom Pyra, Chief Financial Officer and Chief Operating
 Officer of Clark/Bardes Consulting. "Results of our corporate benefits
 practice, Clark/Bardes Consulting -- Compensation Resource division are well
 ahead of plan due to strong new business generation, compensation consulting
 was in line with expectations and healthcare was on target. Our banking
 practice exceeded profit expectations and ended the period with a strong
 backlog of business." Rich Chapman, president of the Clark/Bardes
 Consulting -- Banking Practice division added, "the favorable trends we saw in
 the bank market the latter part of 2000 have continued into 2001."
     "We took several large steps forward operationally during the quarter with
 the launch of our new corporate identity to Clark/Bardes Consulting, the
 introduction of a wide-scale branding initiative and the unveiling of the
 company's new website," stated Jim Bean, Chief Integration Officer of
 Clark/Bardes Consulting. "In addition, we are beginning to see improved
 coordination of our sales activity among our various lines of business and
 company-wide technological improvements as a result of our integration
 efforts."
     "The companies we acquired this past quarter compliment our organization
 well. In particular, Rich / Florin Solutions (a.k.a. "Executive Alliance")
 client base and SC/CHiPS surveys expand our compensation consulting practice
 into the high-tech field.  This rapidly growing industry has significant
 compensation and benefits needs that have traditionally been under-penetrated
 in regard to our product offerings," remarked Tom Wamberg. "We are off to a
 great start in sales, our pipeline continues to be strong, and I am optimistic
 about our progress and outlook."
     Founded in 1967, Clark/Bardes Consulting is a firm with expertise in
 executive compensation and benefit design, funding and plan administration.
 With more than 3,200 corporate, healthcare and banking clients, our mission is
 in helping companies to keep their best people.
     A conference call discussing the company's first quarter 2001 results will
 take place this morning, April 30, 2001 at 10:00am CDT. The call will be
 webcast live and can be listened to by accessing the company's website at
 www.clarkbardes.com .
 
     In addition, Clark/Bardes Consulting will hold its Annual Shareholder
 Meeting on Tuesday, May 1st at 10:00am CDT at the Signature Room at the 95th,
 John Hancock Center, 875 N. Michigan Avenue, Chicago, IL 60611.
 
     All statements other than statements of historical fact included in this
 news release are forward-looking statements. Words such as "anticipate,"
 "believe," "estimate," "expect," "intend" and similar expressions as they
 relate to the Company or its management, identify forward-looking statements.
 Such forward-looking statements are based on the beliefs of the Company's
 management as well as assumptions made by and information currently available
 to the Company's management. These statements are not a guarantee of future
 performance. Actual results could differ materially from those contemplated by
 the forward-looking statements as a result of certain factors, such as
 difficulties associated with changes in tax legislation dependence on key
 consultants, the Company's dependence on persistency of existing business,
 credit risk related to renewal revenue, acquisition risks such as our ability
 to integrate acquired businesses, competitive factors and pricing pressure,
 dependence on certain insurance companies, changes in legal and regulatory
 requirements, general economic conditions and such other factors discussed
 under the caption "Risk Factors" in our Annual Report on Form 10-K for the
 year ended March 31, 2000 as filed with the Securities and Exchange
 Commission.
     Such statements reflect the current views of the Company's management with
 respect to future events and are subject to these and other risks,
 uncertainties and assumptions relating to the operations, results of
 operations, growth strategy and liquidity of the Company. All subsequent
 written and oral forward-looking statements attributable to the Company or
 persons acting on its behalf are expressly qualified in their entirety by this
 paragraph. The Company has no intention, and disclaims any obligation to
 update or revise any forward-looking statements, whether as a result of new
 information, future results or otherwise. Further information may be obtained
 at the Company's Internet site: http://www.clarkbardes.com .
 
 
                              CLARK/BARDES CONSULTING
                                   BALANCE SHEET
                                     UNAUDITED
                       ($ in thousands except share amounts)
 
                                                  March 31,        December 31,
                                                    2001               2000
 
                                       ASSETS
     Current Assets
       Cash and cash equivalents                   $7,660             $7,598
       Accounts and notes receivable, net          30,703             31,134
       Other current assets                         6,123              4,670
         Total Current Assets                      44,486             43,402
 
     Intangible Assets, Net                       177,348            165,373
     Equipment and Leasehold
      Improvements, Net                             9,220              8,376
     Other Assets                                   3,319              2,704
         Total Assets                            $234,373           $219,855
 
 
 
 
                        LIABILITIES AND STOCKHOLDER'S EQUITY
     Current Liabilities
       Accounts payable                           $14,243            $10,786
       Accrued liabilities                         16,101             17,664
       Income taxes                                 4,126              4,121
       Deferred income                              2,887              1,180
       Debt maturing within one year               11,991             11,968
         Total Current Liabilities                 49,348             45,719
 
     Deferred Tax Liability                         7,877              7,228
     Deferred Compensation                          1,553              1,745
     Long Term Debt                                56,348             52,605
 
     Stockholder's Equity
       Common stock                                   127                127
       Paid-in capital                             89,284             88,810
       Retained earnings                           29,836             23,621
         Total Stockholder's Equity               119,247            112,558
         Total Liabilities and
           Stockholder's Equity                  $234,373           $219,855
 
 
 
 
                              CLARK/BARDES CONSULTING
                                  INCOME STATEMENT
                                     UNAUDITED
                       ($ in thousands except share amounts)
 
                                                      Three Months Ended
                                                            March 31,
                                                    2001               2000
 
     Total revenue                                 $66,037           $31,147
     Commission and fee expense                     26,956            10,884
       Gross profit                                 39,081            20,263
     General and administrative expense             24,650            15,013
     Amortization of intangibles                     2,799             1,335
       Income from operations                       11,632             3,915
     Interest and other income                         329                74
     Interest expense                               (1,429)             (925)
       Pre-tax income                               10,531             3,064
     Income tax expense                              4,318             1,273
       Net income                                   $6,213            $1,791
 
     Basic net income per common share
       Net income                                    $0.49             $0.18
       Weighted average shares                  12,696,037         9,738,125
     Diluted net income per common share
      Net income                                     $0.49             $0.18
       Weighted average shares                  12,783,715         9,937,819
 
 
                              CLARK/BARDES CONSULTING
                          OPERATING PERFORMANCE BY MARKET
                                     UNAUDITED
                       ($ in thousands except share amounts)
 
                                                     Three Months Ended
                                                          March 31,
                                                    2001              2000
     CBC - Compensation Resource Group *
            First year revenue                    $21,861            $2,842
            Renewal revenue                        17,761             6,216
            Total revenue                          39,622             9,058
            Commission expense                     21,185             4,492
            Operating expense                       8,138             3,629
            EBITA                                  10,299               937
            Amortization                            1,171               275
            Operating income                       $9,128              $662
 
     CBC- Banking Practice *
            First year revenue                    $10,291           $10,356
            Renewal revenue                         6,322             6,284
            Total revenue                          16,613            16,640
            Commission expense                      5,162             5,739
            Operating expense                       6,242             5,509
            EBITA                                   5,209             5,392
            Amortization                              647               547
            Operating income                       $4,562            $4,845
 
     CBC - HealthCare Practice
            First year revenue                     $4,010            $3,735
            Renewal revenue                         1,823             1,714
            Total revenue                           5,833             5,449
            Commission expense                        610               654
            Operating expense                       4,125             4,483
            EBITA                                   1,098               312
            Amortization                              589               514
            Operating income / (loss)                $509             $(202)
 
     Compensation Consulting
           Total revenue                           $3,970                $-
           Operating expense                        2,459
           EBITA                                    1,511                 -
           Amortization                               334
           Operating income                        $1,177                $-
 
     Holding Company
           Operating income / (loss)              $(3,686)          $(1,391)
 
     * 2000 results restated to reflect the movement of the BOLI operations to
     the Banking Practice division.
 
 
 
 
                              CLARK/BARDES CONSULTING
                             EARNINGS GUIDANCE FOR 2001
                                     UNAUDITED
                       ($ in thousands except share amounts)
                                      Actual
 
                                    Q1-2001 Q2-2001  Q3-2001  Q4-2001     2001
 
     First Year Revenue             40,132   26,300   27,700   40,600   134,732
     Renewal and Other Revenue      25,905   18,100   17,900   23,900    85,805
       Gross Revenue                66,037   44,400   45,600   64,500   220,537
       Gross Profit                 39,081   30,500   31,700   44,400   145,681
       EBITA                        14,431    5,200    6,100   19,100    44,831
       Net Income                    6,213      800    1,400    9,500    17,913
 
     Diluted Shares O/S             12,784   13,218   13,325   13,401    13,244
     Earnings Per Share (diluted)     0.49     0.06     0.11     0.71      1.35
 
 
 
     Expected Contribution by Market                   Total
                                                      Revenue            EBITA
 
      Corporate Benefits                                40%                32%
      Banking Practice                                  40%                69%
      HealthCare Compensation                           10%                 4%
      Compensation Consulting                           10%                18%
      Holding Company                                   -                 -23%
 
 
     All numbers included in this schedule are forward-looking materials. Such
 forward-looking materials are based on the beliefs of the Company's management
 as well as assumptions made by and information currently available to the
 Company's management. These materials are not a guarantee of future
 performance. Actual results could differ materially from those contemplated by
 the forward-looking materials as a result of certain factors, such as
 difficulties associated with changes in tax legislation dependence on key
 consultants, the Company's dependence on persistency of existing business,
 credit risk related to renewal revenue, acquisition risks such as our ability
 to integrate acquired businesses, competitive factors and pricing pressure,
 dependence on certain insurance companies, changes in legal and regulatory
 requirements, general economic conditions and such other factors discussed
 under the caption "Risk Factors" in our Annual Report on Form 10-K for the
 year ended December 31, 2000 as filed with the Securities and Exchange
 Commission. Such materials reflect the current views of the Company's
 management with respect to future events and are subject to these and other
 risks, uncertainties and assumptions relating to the operations, results of
 operations, growth strategy and liquidity of the Company. All subsequent
 written and oral forward-looking statements and materials attributable to the
 Company or persons acting on its behalf are expressly qualified in their
 entirety by this paragraph. The Company has no intention, and disclaims any
 obligation to update or revise any forward-looking materials, whether as a
 result of new information, future results or otherwise. Further information
 may be obtained at the Company's Internet site: http://www.clarkbardes.com.
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X41109390
 
 

SOURCE Clark/Bardes Consulting
    BARRINGTON, Ill., April 30 /PRNewswire/ -- Clark/Bardes Consulting
 (Nasdaq: CLKB), a national firm providing executive compensation planning,
 benefit services and funding alternatives to U.S. corporations, banks and
 healthcare organizations, today announced first quarter 2001 revenues of
 $66.0 million, up 112.0% from revenues of $31.1 million in the first quarter
 of 2000. First quarter operating income before amortization expense (EBITA)
 was $14.4 million, a 174.9% increase from the comparable 2000 period.
 Clark/Bardes Consulting reported net income for the first quarter of
 $6.2 million, or $0.49 per diluted share versus net income of $1.8 million or
 $0.18 per diluted share for the same period last year. The company had
 previously issued earnings guidance of $0.41 per share for the quarter.
 
     First Quarter Highlights
     -- New business revenues were $40.1 million, up 137.0% from first quarter
        2000
     -- Renewal and other revenues increased 82.2% to $25.9 million
     -- EBITA margin was 21.9% compared to 16.9% in first quarter 2000
     -- Record first quarter net income and EPS results of $6.2 million and
        $0.49 respectively
     -- Completed two acquisitions -- Partners First and Rich / Florin
        Solutions, Inc.
     -- Established a new corporate identity and company-wide brand change
 
     Financial Summary of Operations ($ in millions except per share amounts)
 
                                                         Three months ended
                                                              March 31,
 
                                                         2001           2000
 
     Total Revenue                                      $66.0          $31.1
     Gross profit                                        39.1           20.3
     EBITA                                               14.4            5.3
     Net income                                           6.2            1.8
     EPS (Diluted)                                      $0.49          $0.18
 
                                                        As of          As of
                                                      3/31/01       12/31/00
 
     Total Debt (Millions)                              $68.3          $64.6
     Debt/Capitalization ratio                          36.4%          36.5%
 
     Total revenues for the quarter ended March 31, 2001 were $66.0 million, up
 112.0% from revenues of $31.1 million in first quarter 2000. The Company's
 revenues benefited from prior year acquisitions, and an extremely strong sales
 quarter from the Clark/Bardes Consulting -- Compensation Resource Group
 division led by Bill MacDonald. New business revenue during first quarter 2001
 increased 137.0% to $40.1 million compared to the first quarter of 2000.
 Renewal revenues in the first quarter totaled $25.9 million, an increase of
 82.2% over the comparable period in 2000.
 
     Quarterly results
       (000's)              3/31/01       3/31/00   Difference      % Change
 
     New sales                $40.1         $16.9        $23.2        137.0%
     Renewals and other       $25.9         $14.2        $11.7         82.2%
 
     Gross profit was higher for the quarter at $39.1 million, versus
 $20.3 million in first quarter 2000. EBITA increased 174.9% to $14.4 million
 from $5.3 million in the same period last year. Pre-tax income was
 $10.5 million, a 243.8% increase from first quarter 2000. The Company had an
 effective income tax rate of 41.1% for the quarter, which was higher than
 expected and reflects disproportionate income generation from entities
 residing in locations with high state income tax rates. After-tax net income
 was $6.2 million or $0.49 per diluted share versus net income of $1.8 million
 or $0.18 per diluted share in first quarter 2000. Earnings per share is based
 on 12.8 million diluted shares outstanding for the quarter, which reflects the
 Company's private placement of 1.9 million shares in September 2000 and shares
 issued for acquisitions; as compared to 9.9 million diluted shares outstanding
 for first quarter 2000.
     "We were expecting robust first quarter results, due to the acquisition of
 Compensation Resource Group, which has considerable renewal revenues that are
 recognized in January. However, our performance this quarter well exceeded our
 expectations due to our success in closing new business and in controlling
 operating expenses," commented Tom Wamberg, Chairman and Chief Executive
 Officer of Clark/Bardes Consulting. "Our corporate benefits sales were
 particularly strong, complimenting the solid performance from our other
 markets. Integration efforts are continuing to receive a high priority, and
 are paying off for us. We are also pleased with our latest acquisitions, and
 the further penetration they provide in our existing markets".
 
     Outlook
     "Our first quarter results reinforce our confidence that we are on track
 financially," stated Tom Pyra, Chief Financial Officer and Chief Operating
 Officer of Clark/Bardes Consulting. "Results of our corporate benefits
 practice, Clark/Bardes Consulting -- Compensation Resource division are well
 ahead of plan due to strong new business generation, compensation consulting
 was in line with expectations and healthcare was on target. Our banking
 practice exceeded profit expectations and ended the period with a strong
 backlog of business." Rich Chapman, president of the Clark/Bardes
 Consulting -- Banking Practice division added, "the favorable trends we saw in
 the bank market the latter part of 2000 have continued into 2001."
     "We took several large steps forward operationally during the quarter with
 the launch of our new corporate identity to Clark/Bardes Consulting, the
 introduction of a wide-scale branding initiative and the unveiling of the
 company's new website," stated Jim Bean, Chief Integration Officer of
 Clark/Bardes Consulting. "In addition, we are beginning to see improved
 coordination of our sales activity among our various lines of business and
 company-wide technological improvements as a result of our integration
 efforts."
     "The companies we acquired this past quarter compliment our organization
 well. In particular, Rich / Florin Solutions (a.k.a. "Executive Alliance")
 client base and SC/CHiPS surveys expand our compensation consulting practice
 into the high-tech field.  This rapidly growing industry has significant
 compensation and benefits needs that have traditionally been under-penetrated
 in regard to our product offerings," remarked Tom Wamberg. "We are off to a
 great start in sales, our pipeline continues to be strong, and I am optimistic
 about our progress and outlook."
     Founded in 1967, Clark/Bardes Consulting is a firm with expertise in
 executive compensation and benefit design, funding and plan administration.
 With more than 3,200 corporate, healthcare and banking clients, our mission is
 in helping companies to keep their best people.
     A conference call discussing the company's first quarter 2001 results will
 take place this morning, April 30, 2001 at 10:00am CDT. The call will be
 webcast live and can be listened to by accessing the company's website at
 www.clarkbardes.com .
 
     In addition, Clark/Bardes Consulting will hold its Annual Shareholder
 Meeting on Tuesday, May 1st at 10:00am CDT at the Signature Room at the 95th,
 John Hancock Center, 875 N. Michigan Avenue, Chicago, IL 60611.
 
     All statements other than statements of historical fact included in this
 news release are forward-looking statements. Words such as "anticipate,"
 "believe," "estimate," "expect," "intend" and similar expressions as they
 relate to the Company or its management, identify forward-looking statements.
 Such forward-looking statements are based on the beliefs of the Company's
 management as well as assumptions made by and information currently available
 to the Company's management. These statements are not a guarantee of future
 performance. Actual results could differ materially from those contemplated by
 the forward-looking statements as a result of certain factors, such as
 difficulties associated with changes in tax legislation dependence on key
 consultants, the Company's dependence on persistency of existing business,
 credit risk related to renewal revenue, acquisition risks such as our ability
 to integrate acquired businesses, competitive factors and pricing pressure,
 dependence on certain insurance companies, changes in legal and regulatory
 requirements, general economic conditions and such other factors discussed
 under the caption "Risk Factors" in our Annual Report on Form 10-K for the
 year ended March 31, 2000 as filed with the Securities and Exchange
 Commission.
     Such statements reflect the current views of the Company's management with
 respect to future events and are subject to these and other risks,
 uncertainties and assumptions relating to the operations, results of
 operations, growth strategy and liquidity of the Company. All subsequent
 written and oral forward-looking statements attributable to the Company or
 persons acting on its behalf are expressly qualified in their entirety by this
 paragraph. The Company has no intention, and disclaims any obligation to
 update or revise any forward-looking statements, whether as a result of new
 information, future results or otherwise. Further information may be obtained
 at the Company's Internet site: http://www.clarkbardes.com .
 
 
                              CLARK/BARDES CONSULTING
                                   BALANCE SHEET
                                     UNAUDITED
                       ($ in thousands except share amounts)
 
                                                  March 31,        December 31,
                                                    2001               2000
 
                                       ASSETS
     Current Assets
       Cash and cash equivalents                   $7,660             $7,598
       Accounts and notes receivable, net          30,703             31,134
       Other current assets                         6,123              4,670
         Total Current Assets                      44,486             43,402
 
     Intangible Assets, Net                       177,348            165,373
     Equipment and Leasehold
      Improvements, Net                             9,220              8,376
     Other Assets                                   3,319              2,704
         Total Assets                            $234,373           $219,855
 
 
 
 
                        LIABILITIES AND STOCKHOLDER'S EQUITY
     Current Liabilities
       Accounts payable                           $14,243            $10,786
       Accrued liabilities                         16,101             17,664
       Income taxes                                 4,126              4,121
       Deferred income                              2,887              1,180
       Debt maturing within one year               11,991             11,968
         Total Current Liabilities                 49,348             45,719
 
     Deferred Tax Liability                         7,877              7,228
     Deferred Compensation                          1,553              1,745
     Long Term Debt                                56,348             52,605
 
     Stockholder's Equity
       Common stock                                   127                127
       Paid-in capital                             89,284             88,810
       Retained earnings                           29,836             23,621
         Total Stockholder's Equity               119,247            112,558
         Total Liabilities and
           Stockholder's Equity                  $234,373           $219,855
 
 
 
 
                              CLARK/BARDES CONSULTING
                                  INCOME STATEMENT
                                     UNAUDITED
                       ($ in thousands except share amounts)
 
                                                      Three Months Ended
                                                            March 31,
                                                    2001               2000
 
     Total revenue                                 $66,037           $31,147
     Commission and fee expense                     26,956            10,884
       Gross profit                                 39,081            20,263
     General and administrative expense             24,650            15,013
     Amortization of intangibles                     2,799             1,335
       Income from operations                       11,632             3,915
     Interest and other income                         329                74
     Interest expense                               (1,429)             (925)
       Pre-tax income                               10,531             3,064
     Income tax expense                              4,318             1,273
       Net income                                   $6,213            $1,791
 
     Basic net income per common share
       Net income                                    $0.49             $0.18
       Weighted average shares                  12,696,037         9,738,125
     Diluted net income per common share
      Net income                                     $0.49             $0.18
       Weighted average shares                  12,783,715         9,937,819
 
 
                              CLARK/BARDES CONSULTING
                          OPERATING PERFORMANCE BY MARKET
                                     UNAUDITED
                       ($ in thousands except share amounts)
 
                                                     Three Months Ended
                                                          March 31,
                                                    2001              2000
     CBC - Compensation Resource Group *
            First year revenue                    $21,861            $2,842
            Renewal revenue                        17,761             6,216
            Total revenue                          39,622             9,058
            Commission expense                     21,185             4,492
            Operating expense                       8,138             3,629
            EBITA                                  10,299               937
            Amortization                            1,171               275
            Operating income                       $9,128              $662
 
     CBC- Banking Practice *
            First year revenue                    $10,291           $10,356
            Renewal revenue                         6,322             6,284
            Total revenue                          16,613            16,640
            Commission expense                      5,162             5,739
            Operating expense                       6,242             5,509
            EBITA                                   5,209             5,392
            Amortization                              647               547
            Operating income                       $4,562            $4,845
 
     CBC - HealthCare Practice
            First year revenue                     $4,010            $3,735
            Renewal revenue                         1,823             1,714
            Total revenue                           5,833             5,449
            Commission expense                        610               654
            Operating expense                       4,125             4,483
            EBITA                                   1,098               312
            Amortization                              589               514
            Operating income / (loss)                $509             $(202)
 
     Compensation Consulting
           Total revenue                           $3,970                $-
           Operating expense                        2,459
           EBITA                                    1,511                 -
           Amortization                               334
           Operating income                        $1,177                $-
 
     Holding Company
           Operating income / (loss)              $(3,686)          $(1,391)
 
     * 2000 results restated to reflect the movement of the BOLI operations to
     the Banking Practice division.
 
 
 
 
                              CLARK/BARDES CONSULTING
                             EARNINGS GUIDANCE FOR 2001
                                     UNAUDITED
                       ($ in thousands except share amounts)
                                      Actual
 
                                    Q1-2001 Q2-2001  Q3-2001  Q4-2001     2001
 
     First Year Revenue             40,132   26,300   27,700   40,600   134,732
     Renewal and Other Revenue      25,905   18,100   17,900   23,900    85,805
       Gross Revenue                66,037   44,400   45,600   64,500   220,537
       Gross Profit                 39,081   30,500   31,700   44,400   145,681
       EBITA                        14,431    5,200    6,100   19,100    44,831
       Net Income                    6,213      800    1,400    9,500    17,913
 
     Diluted Shares O/S             12,784   13,218   13,325   13,401    13,244
     Earnings Per Share (diluted)     0.49     0.06     0.11     0.71      1.35
 
 
 
     Expected Contribution by Market                   Total
                                                      Revenue            EBITA
 
      Corporate Benefits                                40%                32%
      Banking Practice                                  40%                69%
      HealthCare Compensation                           10%                 4%
      Compensation Consulting                           10%                18%
      Holding Company                                   -                 -23%
 
 
     All numbers included in this schedule are forward-looking materials. Such
 forward-looking materials are based on the beliefs of the Company's management
 as well as assumptions made by and information currently available to the
 Company's management. These materials are not a guarantee of future
 performance. Actual results could differ materially from those contemplated by
 the forward-looking materials as a result of certain factors, such as
 difficulties associated with changes in tax legislation dependence on key
 consultants, the Company's dependence on persistency of existing business,
 credit risk related to renewal revenue, acquisition risks such as our ability
 to integrate acquired businesses, competitive factors and pricing pressure,
 dependence on certain insurance companies, changes in legal and regulatory
 requirements, general economic conditions and such other factors discussed
 under the caption "Risk Factors" in our Annual Report on Form 10-K for the
 year ended December 31, 2000 as filed with the Securities and Exchange
 Commission. Such materials reflect the current views of the Company's
 management with respect to future events and are subject to these and other
 risks, uncertainties and assumptions relating to the operations, results of
 operations, growth strategy and liquidity of the Company. All subsequent
 written and oral forward-looking statements and materials attributable to the
 Company or persons acting on its behalf are expressly qualified in their
 entirety by this paragraph. The Company has no intention, and disclaims any
 obligation to update or revise any forward-looking materials, whether as a
 result of new information, future results or otherwise. Further information
 may be obtained at the Company's Internet site: http://www.clarkbardes.com.
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X41109390
 
 SOURCE  Clark/Bardes Consulting