Adjusted Earnings Per Share up 22% to $2.05
for 2015 (26% local currency)Fee Revenue up 14% for 2015
(20% local currency)GAAP Net Income up 13% for 2015 (18%
local currency)18.3% Normalized EBITDA Margin on Fee Revenue
for 2015
CBRE Group, Inc. (NYSE:CBG) today reported robust revenue and
adjusted earnings growth for the year and fourth quarter ended
December 31, 2015, with full-year revenue and normalized EBITDA
reaching new highs for the company*.
Full-Year 2015 Results
- Revenue for full-year 2015 totaled
$10.9 billion, an increase of 20% (26% local currency1). Fee
revenue2 increased 14% (20% local currency) to $7.7 billion.
Excluding the acquired Global Workplace Solutions business, which
CBRE purchased on September 1, 2015, revenue and fee revenue both
increased 15% in local currency.
- Adjusted net income3 for 2015 rose 23%
to $689.2 million, while adjusted earnings per diluted share3
improved 22% to $2.05. Adjustments (net of tax) for the year
included $15.8 million to align the timing of carried interest
expense and associated revenue recognition, $34.6 million for
integration costs associated with the Global Workplace Solutions
acquisition, $61.4 million of acquisition-related non-cash
amortization as well as $28.6 million that was incurred to
eliminate costs to enhance margins going forward.
- On a U.S. GAAP basis, net income for
2015 rose 13% to $547.1 million, and earnings per diluted share
increased 12% to $1.63.
- Normalized EBITDA4 increased 21% to
$1.4 billion in 2015 and EBITDA4 rose 14% to $1.3 billion for
2015.
- Normalized EBITDA margin on fee revenue
was 18.3% for 2015, a 110 basis point increase from the prior
year.
- Foreign currency movement, including
the marking of currency hedges to market, reduced EBITDA by
approximately $34.8 million (or $0.07 per share) as compared to the
prior year. Without currency effects, adjusted earnings per share
would have increased 26%.
*All percentage changes versus prior-year periods throughout
this press release are in U.S. dollars except where noted.
“2015 was another year of exceptional performance for CBRE,”
said Bob Sulentic, the company’s president and chief executive
officer. “The hard work of our people enabled us to set new company
records for total revenue and earnings and drive double-digit top-
and bottom-line growth. As important, we made many strategic gains,
which have positioned CBRE to continue to create value for our
clients and shareholders.”
Fourth-Quarter 2015
Results
Adjusted Earnings Per Share up 19% to $0.81
for Q4 2015 (21% local currency)Fee Revenue up 18% for Q4
2015 (23% local currency)
- Revenue for the fourth quarter totaled
$3.7 billion, an increase of 33% (38% local currency). Fee revenue
increased 18% (23% local currency) to $2.6 billion. The fourth
quarter of 2015 included approximately $745 million of revenue from
the acquired Global Workplace Solutions business. Excluding the
acquired Global Workplace Solutions business, revenue and fee
revenue were up 11% and 10%, respectively, in local currency. This
growth was achieved on top of an exceptionally strong fourth
quarter of 2014, when revenue increased 25% (28% local currency)
compared with the year-earlier fourth quarter.
- Adjusted net income rose 19% to $271.5
million, while adjusted earnings per share improved 19% to $0.81.
For the fourth quarter of 2015, adjustments (net of tax) included
$15.5 million to align the timing of carried interest expense and
associated revenue recognition, $16.6 million for integration costs
associated with the acquired Global Workplace Solutions business,
$27.2 million of acquisition-related non-cash amortization as well
as $28.6 million that was incurred to eliminate costs to enhance
margins going forward.
- On a U.S. GAAP basis, net income and
earnings per diluted share decreased to $180.0 million and $0.53,
respectively.
- Normalized EBITDA increased 26% to
$517.6 million and EBITDA rose 9% to $427.6 million.
- Normalized EBITDA margin on fee revenue
was 20.3%, a 130 basis point increase from the prior-year fourth
quarter.
- Foreign currency movement, including
the marking of currency hedges to market, reduced EBITDA by
approximately $3.8 million (or $0.01 per share) as compared to the
prior-year fourth quarter.
During the fourth quarter, revenue grew by double digits in all
three global regions. The Americas, CBRE’s largest business
segment, posted its 13th consecutive quarter of double-digit
year-over-year increases as revenue climbed 22% (23% local
currency). EMEA (Europe, the Middle East & Africa) and Asia
Pacific saw revenue increase by 60% (69% local currency) and 37%
(49% local currency), respectively.
The company’s principal businesses – global investment
management and development services – also posted exceptionally
strong results for the quarter.
Occupier outsourcing revenue and fee revenue more than doubled
with the acquisition of Global Workplace Solutions. Excluding
contributions from this acquisition, revenue and fee revenue rose
16% and 19%, respectively, in local currency. (Occupier outsourcing
revenue excludes associated leasing and sales revenue, most of
which is contractual.)
Global leasing revenue rose 4% (8% local currency). In the
United States, growth was muted at 4%, which reflects a solid
performance on top of an exceptionally strong 28% year-over-year
increase in the fourth quarter of 2014. The global increase in
leasing was paced by Europe – notably France and the United Kingdom
– as well as strong contributions from Canada and Mexico.
Capital markets businesses remained highly active globally,
although growth rates slowed from earlier in the year. Global
property sales rose 1% (7% local currency), after accounting for a
decline in market volumes in the United Kingdom. Excluding the
United Kingdom, the global growth rate was 6% (13% local currency)
– driven by improved performance in the United States and across
much of Asia Pacific and continental Europe. While investor
interest in United Kingdom property remains strong, with cap rates
stable and rental rates increasing in the fourth quarter, capital
has been migrating to continental Europe as the economies there
strengthen and property yields are higher. Commercial mortgage
services revenue increased 5% (6% local currency). CBRE’s loan
servicing portfolio totaled $135 billion at the end of 2015.
Asset Services had a strong quarter. Revenue rose 10% (15% local
currency) while fee revenue increased 12% (18% local currency) with
notable growth in EMEA and the Americas. Valuation revenue rose 1%
(9% local currency).
During the fourth quarter, CBRE completed four in-fill
acquisitions, including a data analytics firm, a retail brokerage
specialist, a leader in capital markets services for affordable
housing, and its former affiliate in Memphis, TN.
Fourth-Quarter 2015 Segment
Results
Americas Region (U.S., Canada and
Latin America)
Revenue rose 22% (23% local currency) to $2.0 billion. Fee
revenue rose 15% (17% local currency) to $1.4 billion. Excluding
the acquired Global Workplace Solutions business, revenue and fee
revenue both rose 9% in local currency. Normalized EBITDA increased
7% (9% local currency) to $260.9 million.
EMEA Region (primarily Europe)
Revenue improved 60% (69% local currency) to $1.2 billion. Fee
revenue rose 26% (36% local currency) to $687.7 million. Excluding
the acquired Global Workplace Solutions business, revenue and fee
revenue were up 13% and 12%, respectively, in local currency.
Normalized EBITDA increased 33% (45% local currency) to $93.1
million.
Asia Pacific Region (Asia,
Australia and New Zealand)
Revenue increased 37% (49% local currency) to $379.5 million.
Fee revenue rose 14% (27% local currency) to $260.3 million.
Excluding the acquired Global Workplace Solutions business, revenue
and fee revenue were up 16% and 11%, respectively, in local
currency. Normalized EBITDA increased 11% (24% local currency) to
$36.8 million.
Global Investment Management
(investment management operations in the U.S., Europe and Asia
Pacific)
Revenue rose 14% (22% local currency) to $142.3 million,
primarily driven by higher carried interest tied to significant
returns for clients on property dispositions. Normalized EBITDA
increased 79% (94% local currency) to $52.2 million.
Assets Under Management (AUM) totaled $89.0 billion at the end
of 2015. Compared with year-end 2014, AUM was up $1.9 billion in
local currency, but down when converted into U.S. dollars. During
the fourth quarter, AUM increased by $3.0 billion, after a $1.1
billion drag from currency movement.
Development Services (real estate
development and investment activities primarily in the U.S.)
Revenue decreased to $20.3 million, while EBITDA more than
doubled to $74.7 million. Development projects in process totaled
$6.7 billion, up $1.3 billion from year-end 2014. The pipeline
inventory totaled $3.6 billion, down $0.4 billion from year-end
2014, as projects have been converted from pipeline to
in-process.
Business Outlook
“CBRE has a sustained competitive advantage. Our leading global
brand and strong culture help us to attract – and keep – tremendous
talent and highly desirable clients. Investments in our platform,
particularly in technology and data analytics, are helping our
people create value for these clients. Our revenue base is more
stable and ‘stickier’ than ever before,” Mr. Sulentic said.
“While we are mindful of concerns about China’s slowing growth
and the effect of lower oil prices, fundamentals in our sector
remain on solid footing. We are positioned for another strong year
in 2016, but are maintaining flexibility in case the economy
weakens. Our outlook is based on economists’ consensus view that
the global economy will maintain its modest rate of growth in
2016.”
CBRE anticipates double-digit growth again in 2016, supported by
continued gains in market share, and expects to achieve adjusted
earnings-per-share in the range of $2.27 to $2.37 for 2016. This
equates to a growth rate of 13% at the mid-point of the
guidance.
Conference Call Details
The Company’s fourth-quarter earnings conference call will be
held today (Wednesday, February 3, 2016) at 8:00 a.m. Eastern Time.
A webcast, along with an associated slide presentation, will be
accessible through the Investor Relations section of the Company’s
website at www.cbre.com/investorrelations.
The direct dial-in number for the conference call is
877-407-8037 for U.S. callers and 201-689-8037 for international
callers. A replay of the call will be available starting at 1:00
p.m. Eastern Time on February 3, 2016, and ending at midnight
Eastern Time on February 10, 2016. The dial-in number for the
replay is 877-660-6853 for U.S. callers and 201-612-7415 for
international callers. The access code for the replay is 13626794.
A transcript of the call will be available on the Company’s
Investor Relations website at www.cbre.com/investorrelations.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500
company headquartered in Los Angeles, is the world’s largest
commercial real estate services and investment firm (in terms of
2015 revenue). The Company has more than 70,000 employees
(excluding affiliates), and serves real estate owners, investors
and occupiers through more than 400 offices (excluding affiliates)
worldwide. CBRE offers strategic advice and execution for property
sales and leasing; corporate services; property, facilities and
project management; mortgage banking; appraisal and valuation;
development services; investment management; and research and
consulting. Please visit our website at www.cbre.com.
The information contained in, or accessible through, the
Company’s website is not incorporated into this press release.
Note: This release contains forward-looking statements within
the meaning of the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995, including statements
regarding our future growth momentum, operations, financial
performance (including adjusted earnings per share expectations),
market share, and business outlook. These forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause the Company’s actual results and performance
in future periods to be materially different from any future
results or performance suggested in forward-looking statements in
this release. Any forward-looking statements speak only as of the
date of this release and, except to the extent required by
applicable securities laws, the Company expressly disclaims any
obligation to update or revise any of them to reflect actual
results, any changes in expectations or any change in events. If
the Company does update one or more forward-looking statements, no
inference should be drawn that it will make additional updates with
respect to those or other forward-looking statements. Factors that
could cause results to differ materially include, but are not
limited to: disruptions in general economic and business
conditions, particularly in geographies where our business may be
concentrated; volatility and disruption of the securities, capital
and credit markets; interest rate increases; the cost and
availability of capital for investment in real estate; clients’
willingness to make real estate or long-term contractual
commitments and other factors affecting the value of real estate
assets, inside and outside the United States; increases in
unemployment and general slowdowns in commercial activity; trends
in pricing and risk assumption for commercial real estate services;
the effect of significant movements in average cap rates across
different property types; a reduction by companies in their
reliance on outsourcing for their commercial real estate needs,
which would affect our revenues and operating performance; client
actions to restrain project spending and reduce outsourced staffing
levels; declines in lending activity of Government Sponsored
Enterprises, regulatory oversight of such activity and our mortgage
servicing revenue from the U.S. commercial real estate mortgage
market; our ability to diversify our revenue model to offset
cyclical economic trends in the commercial real estate industry;
our ability to attract new user and investor clients; our ability
to retain major clients and renew related contracts; our ability to
leverage our global services platform to maximize and sustain
long-term cash flow; our ability to maintain EBITDA margins that
enable us to continue investing in our platform and client service
offerings; our ability to control costs relative to revenue growth;
variations in historically customary seasonal patterns that cause
our business not to perform as expected; changes in domestic and
international law and regulatory environments (including relating
to anti-corruption, anti-money laundering, trade sanctions,
currency controls and other trade control laws), particularly in
Russia, Eastern Europe and the Middle East, due to the level of
political instability in those regions; foreign currency
fluctuations; our ability to identify, acquire and integrate
synergistic and accretive businesses; costs and potential future
capital requirements relating to businesses we may acquire;
integration challenges arising out of our Global Workplace
Solutions acquisition as well as of other companies we may acquire,
and our ability to achieve expected cost synergies relating to
those acquisitions; our and our employees’ ability to execute on,
and adapt to, information technology strategies and trends; the
ability of our Global Investment Management business to maintain
and grow assets under management and achieve desired investment
returns for our investors, and any potential related litigation,
liabilities or reputational harm possible if we fail to do so; our
ability to manage fluctuations in net earnings and cash flow, which
could result from poor performance in our investment programs,
including our participation as a principal in real estate
investments; our leverage and our ability to perform under our
credit facilities, indentures and other debt instruments; our
exposure to liabilities in connection with real estate advisory and
property management activities and our ability to procure
sufficient insurance coverage on acceptable terms; liabilities
under guarantees, or for construction defects, that we incur in our
Development Services business; the ability of CBRE Capital Markets
to periodically amend, or replace, on satisfactory terms, the
agreements for its warehouse lines of credit; our ability to
compete globally, or in specific geographic markets or business
segments that are material to us; changes in tax laws in the United
States or in other jurisdictions in which our business may be
concentrated that reduce or eliminate deductions or other tax
benefits we receive; our ability to maintain our effective tax rate
at or below current levels; our ability to comply with laws and
regulations related to our global operations, including real estate
licensure, labor and employment laws and regulations, as well as
the anti-corruption laws and trade sanctions of the U.S. and other
countries; and the effect of implementation of new accounting rules
and standards.
Additional information concerning factors that may influence the
Company's financial information is discussed under “Risk Factors,”
“Management’s Discussion and Analysis of Financial Condition and
Results of Operations,” “Quantitative and Qualitative Disclosures
About Market Risk” and “Cautionary Note on Forward-Looking
Statements” in both our Annual Report on Form 10-K for the year
ended December 31, 2014 and our Quarterly Report on Form 10-Q for
the quarter ended September 30, 2015, as well as in the Company’s
press releases and other periodic filings with the Securities and
Exchange Commission (the SEC). Such filings are available publicly
and may be obtained on the Company’s website at www.cbre.com or
upon written request from CBRE’s Investor Relations Department at
investorrelations@cbre.com.
Note – CBRE has not reconciled the (non-GAAP) adjusted earnings
per share guidance included in this release to the most directly
comparable GAAP measure because this cannot be done without
unreasonable effort.
The terms “fee revenue,” “adjusted net income,” “adjusted
earnings per share” (or adjusted EPS), “EBITDA” and “Normalized
EBITDA,” all of which CBRE uses in this press release, are non-GAAP
financial measures under SEC guidelines, and you should refer to
the footnotes below as well as the “Non-GAAP Financial Measures”
section in this press release for a further explanation of these
measures. We have also included in that section reconciliations of
these measures in specific periods to their most directly
comparable financial measure calculated and presented in accordance
with U.S. GAAP for those periods.
1 Local currency percentage change is calculated by comparing
current-period results at prior-period exchange rates versus
prior-period results.
2 Fee revenue is gross revenue less both client reimbursed costs
largely associated with employees that are dedicated to client
facilities and subcontracted vendor work performed for clients.
3 Adjusted net income and adjusted earnings per share (or
adjusted EPS) include the impact of adjusting the provision for
income taxes to a normalized rate as well as exclude the effect of
selected charges from U.S. GAAP net income and U.S. GAAP earnings
per diluted share. Adjustments during the periods presented
included the write-off of financing costs on extinguished debt,
amortization expense related to certain intangible assets
attributable to acquisitions, integration and other costs related
to acquisitions, cost containment expenses and certain carried
interest incentive compensation expense.
4 EBITDA represents earnings before net interest expense,
write-off of financing costs on extinguished debt, income taxes,
depreciation and amortization. Amounts shown for Normalized EBITDA
further remove (from EBITDA) the impact of certain cash and
non-cash charges related to acquisitions, cost containment expenses
and certain carried interest incentive compensation expense.
CBRE GROUP, INC.
OPERATING RESULTS
FOR THE THREE AND TWELVE MONTHS ENDED
DECEMBER 31, 2015 AND 2014
(Dollars in thousands, except share
data)
Three Months Ended Twelve Months Ended
December 31, December 31, 2015
2014 2015 2014
Revenue $ 3,700,242 $ 2,787,194 $ 10,855,810 $ 9,049,918
Costs and expenses: Cost of services 2,530,521 1,706,343
7,082,932 5,611,262 Operating, administrative and other 864,771
743,337 2,633,609 2,438,960 Depreciation and amortization
98,598 69,444 314,096 265,101 Total
costs and expenses 3,493,890 2,519,124
10,030,637 8,315,323 Gain on disposition of
real estate 631 20,557 10,771
57,659 Operating income 206,983 288,627 835,944 792,254
Equity income from unconsolidated subsidiaries 123,463
34,150 162,849 101,714 Other income (loss) 1,118 1,131 (3,809 )
12,183 Interest income 1,454 1,912 6,311 6,233 Interest expense
35,813 27,709 118,880 112,035 Write-off of financing costs on
extinguished debt - - 2,685
23,087 Income before provision for income taxes 297,205 298,111
879,730 777,262 Provision for income taxes 114,610
92,441 320,853 263,759 Net income 182,595
205,670 558,877 513,503 Less: Net income attributable to
non-controlling interests 2,552 1,393 11,745
29,000 Net income attributable to CBRE Group, Inc. $
180,043 $ 204,277 $ 547,132 $ 484,503 Basic
income per share: Net income per share attributable to CBRE Group,
Inc. $ 0.54 $ 0.62 $ 1.64 $ 1.47
Weighted average shares outstanding for
basic income per share
333,783,269 331,875,303 332,616,301
330,620,206 Diluted income per share: Net income per
share attributable to CBRE Group, Inc. $ 0.53 $ 0.61 $ 1.63
$ 1.45
Weighted average shares outstanding for
diluted income per share
337,223,824 335,106,838 336,414,856
334,171,509 EBITDA $ 427,610 $ 391,959 $
1,297,335 $ 1,142,252
CBRE GROUP, INC.
SEGMENT RESULTS
FOR THE THREE AND TWELVE MONTHS ENDED
DECEMBER, 2015 AND 2014
(Dollars in thousands)
Three Months Ended Twelve Months Ended
December 31, December 31, 2015 2014
2015 2014
Americas
Revenue $ 1,971,160 $ 1,620,490 $ 6,189,913 $ 5,203,766 Costs and
expenses: Cost of services 1,358,386 1,065,973 4,116,257 3,398,443
Operating, administrative and other 373,805 318,514 1,257,310
1,111,091 Depreciation and amortization 64,158
41,418 198,908 149,214 Operating income
$ 174,811 $ 194,585 $ 617,438 $ 545,018 EBITDA
$ 242,040 $ 242,917 $ 836,370 $ 725,559
EMEA
Revenue $ 1,186,883 $ 740,093 $ 3,004,484 $ 2,344,252 Costs and
expenses: Cost of services 900,063 471,619 2,205,550 1,605,859
Operating, administrative and other 221,344 198,364 624,924 582,182
Depreciation and amortization 23,796 15,766
68,370 64,628 Operating income $ 41,680
$ 54,344 $ 105,640 $ 91,583 EBITDA $ 65,175
$ 70,205 $ 176,321 $ 158,424
Asia
Pacific
Revenue $ 379,539 $ 277,178 $ 1,135,070 $ 967,777 Costs and
expenses: Cost of services 272,072 168,751 761,125 606,960
Operating, administrative and other 86,580 75,329 286,706 272,946
Depreciation and amortization 4,223 4,044
15,580 14,661 Operating income $ 16,664
$ 29,054 $ 71,659 $ 73,210 EBITDA $ 20,656
$ 33,098 $ 87,059 $ 87,871
Global Investment
Management
Revenue $ 142,329 $ 125,152 $ 460,700 $ 468,941 Costs and expenses:
Operating, administrative and other 119,631 113,280 349,324 373,977
Depreciation and amortization 5,925 7,499 29,020 32,802 Gain on
disposition of real estate - - -
23,028 Operating income $ 16,773 $ 4,373 $
82,356 $ 85,190 EBITDA $ 25,086 $ 8,724 $
105,284 $ 96,262
Development
Services
Revenue $ 20,331 $ 24,281 $ 65,643 $ 65,182 Costs and expenses:
Operating, administrative and other 63,411 37,850 115,345 98,764
Depreciation and amortization 496 717 2,218 3,796 Gain on
disposition of real estate 631 20,557
10,771 34,631 Operating (loss) income $
(42,945 ) $ 6,271 $ (41,149 ) $ (2,747 ) EBITDA $ 74,653 $
37,015 $ 92,301 $ 74,136
Non-GAAP Financial
Measures
As noted above, the following measures are considered “non-GAAP
financial measures” under SEC guidelines:
(i) Fee revenue
(ii) Net income attributable to CBRE Group, Inc., as adjusted
(which we also refer to as “adjusted net income”) (iii) Diluted
income per share attributable to CBRE Group, Inc. shareholders, as
adjusted (which we also refer to as “adjusted earnings per share”
or “adjusted EPS”) (iv) EBITDA and EBITDA, as adjusted (the latter
of which we also refer to as “Normalized EBITDA”)
None of these measures is a recognized measurement under U.S.
generally accepted accounting principles, or U.S. GAAP, and when
analyzing our operating performance, readers should use them in
addition to, and not as an alternative for, their most directly
comparable financial measure calculated and presented in accordance
with U.S. GAAP. Because not all companies use identical
calculations, our presentation of these measures may not be
comparable to similarly titled measures of other companies.
Our management generally uses these non-GAAP financial measures
to evaluate operating performance and for other discretionary
purposes, and the Company believes that these measures provide a
more complete understanding of ongoing operations, enhance
comparability of current results to prior periods and may be useful
for investors to analyze our financial performance because they
eliminate the impact of selected charges that may obscure trends in
the underlying performance of our business. The Company further
uses certain of these measures, and believes that they are useful
to investors, for purposes described below.
With respect to fee revenue: The Company believes that investors
may find this measure useful to analyze the financial performance
of our Occupier Outsourcing and Asset Services business lines and
our business generally because it excludes costs reimbursable by
clients, and as such provides greater visibility into the
underlying performance of our business.
With respect to adjusted net income, adjusted EPS, EBITDA and
Normalized EBITDA: The Company believes that investors may find
these measures useful in evaluating our operating performance
compared to that of other companies in our industry because their
calculations generally eliminate the accounting effects of
acquisitions, which would include impairment charges of goodwill
and intangibles created from acquisitions—and in the case of EBITDA
and Normalized EBITDA—the effects of financings and income tax and
the accounting effects of capital spending. All of these measures
may vary for different companies for reasons unrelated to overall
operating performance. In the case of EBITDA and Normalized EBITDA,
these measures are not intended to be measures of free cash flow
for our management’s discretionary use because they do not consider
cash requirements such as tax and debt service payments. The EBITDA
and Normalized EBITDA measures calculated herein may also differ
from the amounts calculated under similarly titled definitions in
our credit facilities and debt instruments, which amounts are
further adjusted to reflect certain other cash and non-cash charges
and are used by us to determine compliance with financial covenants
therein and our ability to engage in certain activities, such as
incurring additional debt and making certain restricted payments.
The Company also uses Normalized EBITDA and adjusted EPS as
significant components when measuring our operating performance
under our employee incentive compensation programs.
Fee revenue, which excludes from revenue client reimbursed pass
through costs largely associated with employees that are dedicated
to client facilities and subcontracted vendor work performed for
clients, is calculated as follows (dollars in thousands):
Three Months Ended
Twelve Months Ended December 31, December 31,
2015 2014 2015
2014
Consolidated
Revenue $ 3,700,242 $ 2,787,194 $ 10,855,810 $ 9,049,918 Less: Pass
through costs also recognized as revenue 1,144,971
613,742 3,125,473 2,258,626 Fee revenue $ 2,555,271 $
2,173,452 $ 7,730,337 $ 6,791,292
Occupier
Outsourcing
Revenue1 $ 1,598,159 $ 766,140 $ 4,034,922 $ 2,794,422 Less: Pass
through costs also recognized as revenue 1,010,861
488,811 2,591,340 1,796,411 Fee revenue1 $ 587,298 $
277,329 $ 1,443,582 $ 998,011
Asset
Services
Revenue1 $ 264,884 $ 241,457 $ 1,025,447 $ 919,431 Less: Pass
through costs also recognized as revenue 134,110
124,931 534,133 462,215 Fee revenue1 $ 130,774 $
116,526 $ 491,314 $ 457,216 _________________________ 1 Excludes
related transaction revenue.
Americas
Revenue $ 1,971,160 $ 1,620,490 $ 6,189,913 $ 5,203,766 Less: Pass
through costs also recognized as revenue 526,538
369,032 1,690,786 1,373,291 Fee revenue $ 1,444,622 $
1,251,458 $ 4,499,127 $ 3,830,475
EMEA
Revenue $ 1,186,883 $ 740,093 $ 3,004,484 $ 2,344,252 Less: Pass
through costs also recognized as revenue 499,195
195,209 1,125,758 698,484 Fee revenue $ 687,688 $
544,884 $ 1,878,726 $ 1,645,768
Asia
Pacific
Revenue $ 379,539 $ 277,178 $ 1,135,070 $ 967,777 Less: Pass
through costs also recognized as revenue 119,238
49,501 308,929 186,851 Fee revenue $ 260,301 $
227,677 $ 826,141 $ 780,926
Net income attributable to CBRE Group, Inc., as adjusted (or
adjusted net income), and diluted income per share attributable to
CBRE Group, Inc. shareholders, as adjusted (or adjusted EPS), are
calculated as follows (dollars in thousands, except per share
data):
Three Months Ended
Twelve Months Ended December 31, December 31,
2015 2014 2015
2014 Net income attributable to
CBRE Group, Inc. $ 180,043 $ 204,277 $ 547,132 $ 484,503
Plus / minus: Cost containment expenses, net of tax 28,581 - 28,581
-
Amortization expense related to certain
intangible assets attributable to acquisitions, net of tax
27,177 10,997 61,446 48,261 Integration and other acquisition
related costs, net of tax 16,603 - 34,614 -
Carried interest incentive compensation
expense to align with the timing of associated revenue, net of
tax
15,459 12,341 15,759 14,430 Adjustment of taxes during the year to
normalized rate 3,633 - - - Write-off of financing costs on
extinguished debt, net of tax - (120 ) 1,638
13,955
Net income attributable to CBRE Group,
Inc. shareholders, as adjusted
$ 271,496 $ 227,495 $ 689,170 $ 561,149
Diluted income per share attributable to
CBRE Group, Inc. shareholders, as adjusted
$ 0.81 $ 0.68 $ 2.05 $ 1.68
Weighted average shares outstanding for
diluted income per share
337,223,824 335,106,838 336,414,856
334,171,509
EBITDA and EBITDA, as adjusted (or Normalized EBITDA), are
calculated as follows (dollars in thousands):
Three Months Ended
Twelve Months Ended December 31, December 31,
2015 2014 2015
2014 Net income attributable to CBRE
Group, Inc. $ 180,043 $ 204,277 $ 547,132 $ 484,503 Add:
Depreciation and amortization 98,598 69,444 314,096 265,101
Interest expense 35,813 27,709 118,880 112,035 Write-off of
financing costs on extinguished debt - - 2,685 23,087 Provision for
income taxes 114,610 92,441 320,853 263,759 Less: Interest income
1,454 1,912 6,311 6,233 EBITDA 427,610
391,959 1,297,335 1,142,252 Adjustments: Cost containment
expenses 40,439 - 40,439 -
Carried interest incentive compensation
expense to align with the timing of associated revenue
25,592 20,447 26,085 23,873 Integration and other acquisition
related costs 23,943 - 48,865 - EBITDA,
as adjusted $ 517,584 $ 412,406 $ 1,412,724 $ 1,166,125
EBITDA and EBITDA, as adjusted (or Normalized EBITDA), for
segments are calculated as follows (dollars in thousands):
Three Months Ended
Twelve Months Ended December 31, December 31,
2015 2014 2015
2014
Americas
Net income attributable to CBRE Group, Inc. $ 124,955 $ 138,434 $
410,894 $ 387,302 Adjustments: Depreciation and amortization 64,158
41,418 198,908 149,214 Interest expense, net 17,303 3,638 34,788
15,959 Write-off of financing costs on extinguished debt - - 2,685
23,087 Royalty and management service (income) expense (19,258 )
5,245 (15,136 ) (13,411 ) Provision for income taxes 54,882
54,182 204,231 163,408
EBITDA 242,040 242,917 836,370 725,559 Cost containment
expenses 7,491 - 7,491 - Integration and other costs related to
acquisitions 11,385 - 33,255
- EBITDA, as adjusted $ 260,916 $
242,917 $ 877,116 $ 725,559
EMEA
Net income attributable to CBRE Group, Inc. $ 3,958 $ 28,088 $
29,028 $ 13,383 Adjustments: Depreciation and amortization 23,796
15,766 68,370 64,628 Interest expense, net 7,685 12,856 41,341
50,344 Royalty and management service expense (income) 9,723 (6,504
) 2,079 (5,210 ) Provision for income taxes 20,013
19,999 35,503 35,279
EBITDA 65,175 70,205 176,321 158,424 Cost containment expenses
20,014 - 20,014 - Integration and other costs related to
acquisitions 7,869 - 8,868
- EBITDA, as adjusted $ 93,058 $ 70,205
$ 205,203 $ 158,424
Asia
Pacific
Net income attributable to CBRE Group, Inc. $ 3,219 $ 26,397 $
32,286 $ 35,797 Adjustments: Depreciation and amortization 4,223
4,044 15,580 14,661 Interest expense, net 1,309 673 3,998 2,250
Royalty and management service expense (income) 7,371 (22 ) 8,254
13,876 Provision for income taxes 4,534 2,006
26,941 21,287 EBITDA 20,656
33,098 87,059 87,871 Cost containment expenses 11,413 - 11,413 -
Integration and other costs related to acquisitions 4,689
- 6,742 - EBITDA,
as adjusted $ 36,758 $ 33,098 $ 105,214 $
87,871
Global Investment
Management
Net income (loss) attributable to CBRE Group, Inc. $ 2,711 $
(10,607 ) $ 21,065 $ 7,530 Adjustments: Depreciation and
amortization 5,925 7,499 29,020 32,802 Interest expense, net 7,948
7,979 31,510 33,896 Royalty and management service expense 2,164
1,281 4,803 4,745 Provision for income taxes 6,338
2,572 18,886 17,289
EBITDA 25,086 8,724 105,284 96,262
Carried interest incentive compensation
expense to align with the timing of associated revenue
25,592 20,447 26,085 23,873 Cost containment expenses 1,521
- 1,521 - EBITDA,
as adjusted $ 52,199 $ 29,171 $ 132,890 $
120,135
Development
Services
Net income attributable to CBRE Group, Inc. $ 45,200 $ 21,965 $
53,859 $ 40,491 Adjustments: Depreciation and amortization 496 717
2,218 3,796 Interest expense, net 114 651 932 3,353 Provision for
income taxes 28,843 13,682
35,292 26,496 EBITDA $ 74,653 $ 37,015
$ 92,301 $ 74,136
CBRE GROUP, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Dollars in thousands)
December 31, December 31, 2015
2014 Assets: Cash and cash equivalents1 $ 540,403 $
740,884 Restricted cash 72,764 28,090 Receivables, net 2,471,740
1,736,229 Warehouse receivables2 1,767,107 506,294 Property and
equipment, net 529,823 497,926 Goodwill and other intangibles, net
4,536,466 3,136,181 Investments in and advances to unconsolidated
subsidiaries 217,943 218,280 Other assets, net3 881,697
704,126 Total assets $ 11,017,943 $ 7,568,010
Liabilities: Current liabilities, excluding those related to
long-term debt3 $ 3,208,932 $ 2,380,308 Warehouse lines of credit2
1,750,781 501,185 Revolving credit facility - 4,840 Senior term
loans, net 877,899 638,076 5.00% senior notes, net 789,144 787,947
4.875 senior notes, net 590,469 - 5.25% senior notes, net 421,964
422,206 Other debt 79 2,808 Other long-term liabilities3
619,605 529,242 Total liabilities 8,258,873
5,266,612 Equity: CBRE Group, Inc. stockholders' equity
2,712,652 2,259,830 Non-controlling interests 46,418
41,568 Total equity 2,759,070 2,301,398 Total
liabilities and equity $ 11,017,943 $ 7,568,010 1
Includes $70.2 million and $58.0 million of cash in
consolidated funds and other entities not available for Company use
as of December 31, 2015 and 2014, respectively. 2 Represents
loan receivables, the majority of which are offset by related
warehouse line of credit facilities. 3 In the fourth quarter
of 2015, the Company elected to early adopt the provisions of ASU
2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of
Deferred Taxes.” This ASU requires the offset of all deferred tax
assets and liabilities, including valuation allowances, for each
tax-paying jurisdiction within each tax-paying component. The net
deferred tax must be presented as a single noncurrent amount. In
connection with the early adoption of ASU 2015-17 as well as due to
other reclassifications made to tax accounts, changes were made to
the prior year to conform to the current year presentation.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160203005546/en/
CBRE Group, Inc.Steve IacoSenior Managing DirectorInvestor
Relations & Corporate Communications212-984-6535
CBRE Group, Inc. (NASDAQ:CBRE)
Historical Stock Chart
From Mar 2024 to Apr 2024
CBRE Group, Inc. (NASDAQ:CBRE)
Historical Stock Chart
From Apr 2023 to Apr 2024