Revenue up 39% (42% local currency)
Fee Revenue up 25% (28% local
currency)
GAAP EPS of $0.24; Adjusted EPS of
$0.36
CBRE Group, Inc. (NYSE:CBG) today reported strong financial
results for the first quarter ended March 31, 2016.
First-Quarter 2016
Results*
- Revenue for the first quarter totaled
$2.8 billion, an increase of 39% (42% local currency1). Fee
revenue2 increased 25% (28% local currency) to $1.8 billion. The
first quarter of 2016 included approximately $654 million of
revenue from the acquired Global Workplace Solutions business.
Excluding the acquired Global Workplace Solutions business, revenue
and fee revenue were both up 7% (10% local currency).
- On a U.S. GAAP basis, net income and
earnings per diluted share decreased to $82.2 million and $0.24,
respectively. GAAP net income for the first quarter of 2016 was
affected by $17.0 million of acquisition-related non-cash
amortization, $11.6 million of integration costs associated with
the Global Workplace Solutions acquisition, as well as $8.8 million
incurred in the cost elimination program that the company
referenced in its fourth quarter 2015 earnings release.
- Adjusted net income3 rose 14% to $120.8
million, while adjusted earnings per share improved 13% to
$0.36.
- Foreign currency movement, primarily
the impact of marking to market of currency hedges, reduced
earnings per diluted share and adjusted earnings per diluted share,
by approximately $0.04 as compared to the prior-year first
quarter.
- EBITDA4 rose 3% to $252.6 million and
Normalized EBITDA4 increased 15% to $282.7 million. EBITDA and
Normalized EBITDA were negatively impacted by $21.1 million and
$22.0 million, respectively, of currency movement, primarily the
marking to market of currency hedges in the first quarter of 2016
versus the first quarter of 2015.
- Normalized EBITDA margin on fee revenue
was 15.6%.
* All percentage changes versus prior-year periods throughout
this press release are in U.S. dollars, except where noted.
Management Commentary
“We started 2016 with very strong performance,” said Bob
Sulentic, CBRE’s president and chief executive officer. “Our people
around the world worked together to again produce double-digit
revenue and adjusted earnings per share growth, despite significant
negative effects from currency hedges in the quarter. Without this
impact, adjusted earnings per share would be up 25%.”
Mr. Sulentic added: “CBRE continues to achieve market share
gains by attracting and developing top talent and enabling them to
leverage our powerful platform to provide superb insight and value
to our clients.” Earlier this month, Forbes named CBRE the 15th
best employer in America, reflecting the strength of the company’s
culture.
Revenue growth was strong in each of CBRE’s three global
regions. The Americas, the company’s largest business segment, saw
revenue increase 29% (30% local currency). In EMEA (Europe, the
Middle East & Africa), revenue rose by 72% (79% local currency)
with all countries posting gains, highlighted by The Netherlands,
Spain and the United Kingdom. In Asia Pacific (APAC), India and
Japan were the catalysts for a 48% (54% local currency) increase in
revenue.
Global leasing was exceptionally strong during the first quarter
as revenue surged 15% (18% local currency). The United States set
the pace, with revenue up 20%, driven by a number of large
transactions. A broad range of countries also generated strong
growth, including Canada, France, India, Italy and Japan. The
United Kingdom showed growth of 7% (16% local currency).
The occupier outsourcing business line continued to benefit from
strong underlying growth drivers, augmented by contributions from
the acquired Global Workplace Solutions business. Excluding
contributions from this acquisition, fee revenue improved 11% (17%
local currency), with all three regions posting double-digit growth
in local currency. (Note: leasing and sales revenue generated by
contractual occupier clients is recorded in our leasing and sales
revenue categories.)
On a global basis, property sales revenue grew 7% (9% local
currency) with notable growth outside the United States. APAC
registered the strongest growth with revenue up 12% (18% local
currency), paced by Japan. Strong gains in France, The Netherlands
and Spain – as well as growth in the United Kingdom – resulted in a
4% (11% local currency) revenue increase in EMEA. The Americas saw
revenue rise 6% (7% local currency). Commercial mortgage services
revenue increased 3% (same in local currency), driven by higher
loan origination volumes with banks.
Development Services also posted very strong revenue and
earnings growth. Projects in process in this business totaled $7.1
billion, up $1.6 billion from the first quarter of 2015. The
pipeline inventory totaled $3.1 billion, down $0.5 billion from a
year ago, as development projects converted from pipeline to
in-process. In the Global Investment Management business, Assets
Under Management totaled $89.7 billion at the end of the first
quarter 2016. This represents an increase of $0.7 billion from
year-end 2015 or $0.3 billion in local currency.
The first quarter results reflect the ongoing evolution of
CBRE’s business base toward more stable revenue. Contractual fee
revenue accounted for 46% of total fee revenue in the current
quarter – up from 39% in the first quarter of 2015. Contractual fee
revenue, plus leasing, rose to 74% of total fee revenue from 70%
during the prior-year period.
First-Quarter 2016 Segment
Results
The following tables present highlights of CBRE segment
performance during the first quarter of 2016 (dollars in
thousands):
Americas
EMEA Asia Pacific % Change from Q1
2015 % Change from Q1 2015
% Change from Q1 2015 Q1 2016 USD
LC Q1 2016 USD LC
Q1 2016 USD LC Revenue
$
1,583,559
29% 30%
$
847,498
72% 79%
$
308,524
48% 54% Fee revenue 1,068,861 25% 26% 447,389 38% 45% 192,689 28%
34% Fee revenue, excluding GWS 950,809 11% 12% 343,197 6% 13%
158,353 5% 11% EBITDA 173,338 2% 2% 15,214 -16% -10% 10,654 -26%
-29% Normalized EBITDA 187,387 8% 8% 27,716 52% 63% 12,790 -12%
-15%
Global Investment Management
Development Services % Change from Q1 2015 %
Change from Q1 2015 ` Q1 2016 USD
LC Q1 2016 USD LC Revenue $
90,380 -18% -15% $ 16,773 37% 37% EBITDA 21,536 -43% -42% 31,875
476% 476% Normalized EBITDA 22,915 -35% -33% 31,875 476% 476%
First-quarter 2016 results were impacted by select items
including acquisition-related integration expenses and charges
associated with cost elimination actions. The company does not
normalize for currency movements, including gains or losses from
currency hedging. Accordingly, EBITDA and Normalized EBITDA were
negatively impacted by foreign currency movements, primarily the
marking to market of currency hedging. This reduced the current
quarter Normalized EBITDA relative to the first quarter of 2015 as
follows: Americas $4.9 million; EMEA $5.4 million; Asia Pacific
$7.0 million; and Global Investment Management $4.7 million.
Business Outlook
“We are very encouraged by our strong start to 2016,” Mr.
Sulentic said. “As we look ahead, it is important to remember that
the first quarter is typically our seasonally lightest quarter for
revenue and earnings. As always, we caution against using the first
quarter as a barometer of full year performance. However, our
business has positive momentum and the macro environment – while
more cautious than a year ago – remains generally supportive, with
consensus forecasts calling for continued modest economic growth in
the U.S. and globally.”
CBRE continues to expect adjusted earnings-per-share in the
range of $2.27 to $2.37 for full-year 2016. This represents 13%
year-on-year growth at the mid-point of the range.
Conference Call Details
The Company’s first-quarter earnings conference call will be
held today (Thursday, April 28, 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 p.m.
Eastern Time on April 28, 2016, and ending at midnight Eastern
Time on May 5, 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 13633047. 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; foreign currency
fluctuations; 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 rising level of political instability in
those regions; 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 companies we may acquire; our
ability to retain and incentivize producers; 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 under our debt instruments as well as the limited
restrictions therein on our ability to incur additional debt, and
the potential increased borrowing costs to us from a credit-ratings
downgrade; litigation and its financial and reputational risks to
us; the ability of CBRE Capital Markets to periodically amend, or
replace, on satisfactory terms, the agreements for its warehouse
lines of credit; 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; our ability to
compete globally, or in specific geographic markets or business
segments that are material to us; our and our employees’ ability to
execute on, and adapt to, information technology strategies and
trends; our ability to comply with laws and regulations related to
our global operations, including real estate licensure, tax, labor
and employment laws and regulations, as well as the anti-corruption
laws and trade sanctions of the U.S. and other countries; our
ability to maintain our effective tax rate at or below current
levels; 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, 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
select 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 (reversal) to align with the timing of
associated revenue.
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
(reversal) to align with the timing of associated revenue.
CBRE GROUP, INC.
OPERATING RESULTS
FOR THE THREE MONTHS ENDED MARCH 31,
2016 AND 2015
(Dollars in thousands, except share
data)
Three Months Ended March
31, 2016 2015 Revenue $ 2,846,734 $
2,052,503 Costs and expenses: Cost of services 2,013,613
1,290,777 Operating, administrative and other 635,838 550,184
Losses (gains) on currency hedges 7,528 (18,409 ) Depreciation and
amortization 86,994 69,846 Total costs and
expenses 2,743,973 1,892,398 Gain on
disposition of real estate 4,819 -
Operating income 107,580 160,105 Equity income from
unconsolidated subsidiaries1 57,301 15,451 Other income 3,215 1,087
Interest income 1,459 2,297 Interest expense 34,790 26,214
Write-off of financing costs on extinguished debt -
2,685 Income before provision for income taxes 134,765
150,041 Provision for income taxes 50,125 56,903
Net income 84,640 93,138 Less: Net income attributable to
non-controlling interests 2,473 201 Net income
attributable to CBRE Group, Inc. $ 82,167 $ 92,937
Basic income per share: Net income per share attributable to
CBRE Group, Inc. $ 0.25 $ 0.28 Weighted average
shares outstanding for basic income per share 333,992,935
331,976,907 Diluted income per share: Net
income per share attributable to CBRE Group, Inc. $ 0.24 $ 0.28
Weighted average shares outstanding for diluted
income per share 337,506,232 335,698,590
EBITDA $ 252,617 $ 246,288
_______________
1 Equity income from unconsolidated subsidiaries includes
$47.4 million and $11.8 million for the three months ended March
31, 2016 and 2015, respectively, attributable to Development
Services but does not include related compensation. Both equity
income and related compensation expense are included in EBITDA for
that segment.
CBRE GROUP, INC.
SEGMENT RESULTS
FOR THE THREE MONTHS ENDED MARCH 31,
2016 AND 2015
(Dollars in thousands)
Three Months Ended March 31,
2016
20151
Americas
Revenue $ 1,583,559 $ 1,227,616 Costs and expenses: Cost of
services 1,099,391 787,117 Operating, administrative and other2
317,183 275,421 Depreciation and amortization 60,600
42,950 Operating income $ 106,385 $ 122,128
EBITDA $ 173,338 $ 170,062
EMEA
Revenue $ 847,498 $ 494,024 Costs and expenses: Cost of services
683,678 362,503 Operating, administrative and other2 149,315
114,290 Depreciation and amortization 15,005
14,792 Operating (loss) income $ (500 ) $ 2,439
EBITDA $ 15,214 $ 18,183
Asia
Pacific
Revenue $ 308,524 $ 208,366 Costs and expenses: Cost of services
230,544 141,157 Operating, administrative and other2 67,281 52,747
Depreciation and amortization 4,181 3,846
Operating income $ 6,518 $ 10,616 EBITDA $
10,654 $ 14,462
Global Investment
Management
Revenue $ 90,380 $ 110,224 Costs and expenses: Operating,
administrative and other2 72,390 70,753 Depreciation and
amortization 6,620 7,611 Operating
income $ 11,370 $ 31,860 EBITDA $ 21,536 $
38,045
Development
Services
Revenue $ 16,773 $ 12,273 Costs and expenses: Operating,
administrative and other 37,197 18,564 Depreciation and
amortization 588 647 Gain on disposition of real estate
4,819 - Operating loss $ (16,193 ) $ (6,938 )
EBITDA $ 31,875 $ 5,536
_______________
1 During 2016, we changed our methodology for allocating
certain costs to our reporting segments, including stock
compensation, currency hedging and certain intercompany
transactions. Prior year amounts have been reclassified to conform
with the current year presentation. Such changes had no impact on
our consolidated results. 2
Operating, administrative and other
expenses includes gains and losses on currency hedges.
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 March 31,
2016 2015
Consolidated
Revenue $ 2,846,734 $ 2,052,503 Less: Pass through costs also
recognized as revenue 1,030,642 597,363 Fee revenue $
1,816,092 $ 1,455,140
Occupier
Outsourcing
Revenue1 $ 1,413,294 $ 694,863 Less: Pass through costs also
recognized as revenue 897,300 461,535 Fee revenue1 $
515,994 $ 233,328
Property
Management
Revenue1 $ 250,674 $ 252,459 Less: Pass through costs also
recognized as revenue 133,342 135,828 Fee revenue1 $
117,332 $ 116,631
_______________
1 Excludes associated leasing and sales revenue.
Americas
Revenue $ 1,583,559 $ 1,227,616 Less: Pass through costs also
recognized as revenue 514,698 369,361 Fee revenue $
1,068,861 $ 858,255
EMEA
Revenue $ 847,498 $ 494,024 Less: Pass through costs also
recognized as revenue 400,109 170,119 Fee revenue $
447,389 $ 323,905
Asia
Pacific
Revenue $ 308,524 $ 208,366 Less: Pass through costs also
recognized as revenue 115,835 57,883 Fee revenue $
192,689 $ 150,483
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 March 31,
2016 2015 Net income
attributable to CBRE Group, Inc. $ 82,167 $ 92,937 Plus /
minus:
Amortization expense related to certain
intangible assets attributable to acquisitions, net of tax
17,016 11,109 Integration and other costs related to acquisitions,
net of tax 11,643 1,960 Cost containment expenses, net of tax 8,788
- Adjustment of taxes during the year to normalized rate 930 -
Carried interest incentive compensation
expense (reversal) to align with the timing of associated revenue,
net of tax
301 (1,691 ) Write-off of financing costs on extinguished debt, net
of tax - 1,638
Net income attributable to CBRE Group,
Inc. shareholders, as adjusted
$ 120,845 $ 105,953
Diluted income per share attributable to
CBRE Group, Inc. shareholders, as adjusted
$ 0.36 $ 0.32
Weighted average shares outstanding for
diluted income per share
337,506,232 335,698,590
EBITDA and EBITDA, as adjusted (or Normalized EBITDA), are
calculated as follows (dollars in thousands):
Three Months Ended March 31,
2016 2015 Net income
attributable to CBRE Group, Inc. $ 82,167 $ 92,937 Add:
Depreciation and amortization 86,994 69,846 Interest expense 34,790
26,214 Write-off of financing costs on extinguished debt - 2,685
Provision for income taxes 50,125 56,903 Less: Interest income
1,459 2,297 EBITDA 252,617 246,288
Adjustments: Integration and other acquisition related costs 17,173
3,213 Cost containment expenses 12,403 -
Carried interest incentive compensation
expense (reversal) to align with the timing of associated
revenue
490 (2,772 ) EBITDA, as adjusted $ 282,683 $ 246,729
EBITDA and EBITDA, as adjusted (or Normalized EBITDA), for
segments are calculated as follows (dollars in thousands):
Three Months Ended March 31,
2016
20151
Americas
Net income attributable to CBRE Group, Inc. $ 71,518 $ 83,135
Adjustments: Depreciation and amortization 60,600 42,950 Interest
expense, net 20,926 3,546 Write-off of financing costs on
extinguished debt - 2,685 Royalty and management service income
(6,768 ) (5,084 ) Provision for income taxes 27,062
42,830 EBITDA 173,338 170,062 Integration and other
costs related to acquisitions 10,691 3,213 Cost containment
expenses 3,358 - EBITDA, as adjusted $
187,387 $ 173,275
EMEA
Net loss attributable to CBRE Group, Inc. $ (12,135 ) $ (10,288 )
Adjustments: Depreciation and amortization 15,005 14,792 Interest
expense, net 3,512 11,447 Royalty and management service (income)
expense (626 ) 1,190 Provision for income taxes 9,458
1,042 EBITDA 15,214 18,183 Cost containment expenses
7,022 - Integration and other costs related to acquisitions
5,480 - EBITDA, as adjusted $ 27,716 $
18,183
Asia
Pacific
Net (loss) income attributable to CBRE Group, Inc. $ (2,570 ) $
3,786 Adjustments: Depreciation and amortization 4,181 3,846
Interest expense, net 915 898 Royalty and management service
expense 6,258 2,848 Provision for income taxes 1,870
3,084 EBITDA 10,654 14,462 Cost containment expenses
1,134 - Integration and other costs related to acquisitions
1,002 - EBITDA, as adjusted $ 12,790 $
14,462
Global Investment
Management
Net income attributable to CBRE Group, Inc. $ 7,284 $ 13,873
Adjustments: Depreciation and amortization 6,620 7,611 Interest
expense, net 7,697 7,684 Royalty and management service expense
1,136 1,046 (Benefit of) provision for income taxes (1,201 )
7,831 EBITDA 21,536 38,045 Carried interest incentive
compensation expense (reversal) to align with the timing of
associated revenue 490 (2,772 ) Cost containment expenses
889 - EBITDA, as adjusted $ 22,915 $
35,273
Development
Services
Net income attributable to CBRE Group, Inc. $ 18,070 $ 2,431
Adjustments: Depreciation and amortization 588 647 Interest
expense, net 281 342 Provision for income taxes 12,936
2,116 EBITDA $ 31,875 $ 5,536
_______________
1 During 2016, we changed our methodology for allocating
certain costs to our reporting segments, including stock
compensation, currency hedging and certain intercompany
transactions. Prior year amounts have been reclassified to conform
with the current year presentation. Such changes had no impact on
our consolidated results.
CBRE GROUP, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Dollars in thousands)
(Unaudited)
March 31, December 31,
2016 2015 Assets: Cash and cash equivalents1 $
489,229 $ 540,403 Restricted cash 63,372 72,764 Receivables, net
2,344,825 2,471,740 Warehouse receivables2 724,508 1,767,107
Property and equipment, net 528,350 529,823 Goodwill and other
intangibles, net 4,550,202 4,536,466 Investments in and advances to
unconsolidated subsidiaries 220,533 217,943 Other assets, net
914,116 881,697 Total assets $ 9,835,135 $ 11,017,943
Liabilities: Current liabilities, excluding those related to
long-term debt $ 2,661,965 $ 3,208,932 Warehouse lines of credit2
714,377 1,750,781 Revolving credit facility 280,000 - Senior term
loans, net 872,916 877,899 5.00% senior notes, net 789,453 789,144
4.875% senior notes, net 590,650 590,469 5.25% senior notes, net
422,017 421,964 Other debt 87 79 Other long-term liabilities
636,972 619,605 Total liabilities 6,968,437
8,258,873 Equity: CBRE Group, Inc. stockholders' equity
2,817,595 2,712,652 Non-controlling interests 49,103
46,418 Total equity 2,866,698 2,759,070 Total
liabilities and equity $ 9,835,135 $ 11,017,943
_______________
1 Includes $64.0 million and $70.2 million of cash in
consolidated funds and other entities not available for Company use
as of March 31, 2016 and December 31, 2015, respectively. 2
Represents loan receivables, the majority of which are offset by
borrowings under related warehouse line of credit facilities.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160428005418/en/
CBRE Group, Inc.Steve Iaco, 212-984-6535Senior Managing
DirectorInvestor Relations & Corporate Communications
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