Colliers International Reports Strong First Quarter Results
(Thomson Reuters ONE) -
Revenue up 12% with substantial increase to earnings
Operating highlights:
Three months ended
March 31
---------------------------------
(in millions of US$, except EPS) 2017 2016
------------- -----------------
Revenues $ 422.8 $ 376.1
Adjusted EBITDA (note 1) 29.3 22.2
Adjusted EPS (note 2) 0.33 0.19
GAAP operating earnings 10.9 8.9
GAAP EPS - (0.19 )
TORONTO, May 02, 2017 (GLOBE NEWSWIRE) -- Colliers International Group Inc.
(NASDAQ:CIGI) (TSX:CIGI) today reported operating and financial results for its
first quarter ended March 31, 2017. All amounts are in US dollars.
Revenues for the first quarter were $422.8 million, a 12% increase (13% in local
currency) relative to the same quarter in the prior year, Adjusted EBITDA (note
1) was $29.3 million, up 32% (33% in local currency) and Adjusted EPS (note 2)
was $0.33, a 74% increase versus the prior year quarter. GAAP operating earnings
were $10.9 million, relative to $8.9 million reported in the prior year period.
GAAP diluted net earnings per common share was breakeven for the quarter, versus
a loss of $0.19 per share for the same quarter a year ago. First quarter
adjusted EPS and GAAP EPS would have been approximately unchanged excluding
foreign exchange impacts.
"Colliers delivered strong results to start the year, with solid revenue growth
from acquisitions and internally from our existing operations. Our revenue
pipelines indicate sustained activity across all service lines, with generally
stable conditions in most major markets," said Jay S. Hennick, Chairman and CEO
of Colliers International. "With five strategic acquisitions completed to date,
expanding our presence in Northern California, Nevada, Minnesota and Denmark and
strengthening our existing businesses in the UK and Michigan, we remain
optimistic about our growth prospects for 2017. Anchored by our strong balance
sheet and disciplined growth strategy, Colliers International is well positioned
to continue building our global platform and market leadership in the years to
come," he concluded.
About Colliers International
Colliers International Group Inc. (NASDAQ:CIGI) (TSX:CIGI) is an industry-
leading global real estate services company with 15,000 skilled professionals
operating in 68 countries. With an enterprising culture and significant employee
ownership, Colliers professionals provide a full range of services to real
estate occupiers, owners and investors worldwide. Services include strategic
advice and execution for property sales, leasing and finance; global corporate
solutions; property, facility and project management; workplace solutions;
appraisal, valuation and tax consulting; customized research; and thought
leadership consulting.
Colliers professionals think differently, share great ideas and offer thoughtful
and innovative advice that help clients accelerate their success. Colliers has
been ranked among the top 100 global outsourcing firms by the International
Association of Outsourcing Professionals for 12 consecutive years, more than any
other real estate services firm.
For the latest news from Colliers, visit Colliers.com or follow us on Twitter:
(at)Colliers and LinkedIn.
Consolidated Revenues by Line of Service
Three months ended
(in thousands of US$) March 31 Growth Growth
-----------------------
(LC = local currency) 2017 2016 in USD % in LC %
----------- -----------
Outsourcing &
Advisory $ 163,565 $ 159,818 2% 3%
Lease Brokerage 136,859 112,885 21% 22%
Sales Brokerage 122,418 103,405 18% 18%
----------- -----------
Total revenues $ 422,843 $ 376,108 12% 13%
----------- -----------
Consolidated revenues for the first quarter grew 13% on a local currency basis,
led by significant increases in Lease Brokerage and Sales Brokerage in the
Americas and Asia Pacific regions. Consolidated internal revenue growth in local
currencies was 1% (note 3), impacted by a decline in lower margin Outsourcing &
Advisory activity in the EMEA region relative to very strong comparatives in the
prior year period. Excluding this, consolidated internal revenue growth in local
currencies was 6%.
Segmented Quarterly Results
Americas region revenues totalled $257.0 million for the first quarter compared
to $210.5 million in the prior year quarter, up 21% on a local currency basis.
Revenue growth was comprised of 17% contribution from recent acquisitions and
4% internal growth. Adjusted EBITDA was $21.2 million, relative to $21.6 million
in the prior year quarter, impacted by (i) recent investments in people to add
new service line capabilities in the US and (ii) timing of expenses. GAAP
operating earnings were $11.5 million, relative to $17.0 million in the prior
year quarter, impacted by acquisition-related costs incurred in the current
quarter.
EMEA region revenues totalled $89.0 million for the first quarter compared to
$98.9 million in the prior year quarter, down 4% on a local currency basis,
comprised of an 11% decline in internal revenues offset by 7% growth from recent
acquisitions. Internal revenues were impacted by (i) a decline in Outsourcing &
Advisory activity, particularly in France with several large project management
assignments in the prior year quarter involving the supply and installation of
materials at lower margins than other revenue types, offset by (ii) increased
Lease Brokerage activity, primarily in the UK. Foreign exchange headwinds with
respect to the UK pound sterling negatively affected results on a US dollar
reporting currency basis. Adjusted EBITDA was $3.6 million, versus a loss of
$0.6 million in the prior year quarter, driven by changes in revenue mix and
recent acquisitions. The GAAP operating loss was $1.1 million for the quarter,
relative to a loss of $5.9 million in the prior year quarter.
Asia Pacific region revenues totalled $76.4 million for the first quarter
compared to $66.4 million in the prior year quarter, up 12% on a local currency
basis entirely from internal growth, and concentrated in Lease Brokerage and
Sales Brokerage. Foreign exchange tailwinds positively impacted results on a US
dollar reporting currency basis. Adjusted EBITDA was $6.2 million versus $3.3
million in the prior year quarter, benefitting from operating leverage from
higher revenues. GAAP operating earnings were $4.9 million for the first
quarter, relative to $1.9 million in the prior year quarter.
Global corporate costs were $1.8 million in the first quarter, relative to $2.2
million in the prior year period, positively impacted by lower variable
expenses. The corporate GAAP operating loss for the first quarter was $4.4
million, relative to a loss of $4.1 million in the prior year period.
Conference Call
Colliers will be holding a conference call on Tuesday, May 2, 2017 at 11:00 a.m.
Eastern Time to discuss the quarter's results. The call, as well as a
supplemental slide presentation, will be simultaneously web cast and can be
accessed live or after the call at www.colliers.com in the "Shareholders /
Newsroom" section.
Forward-looking Statements
This press release includes or may include forward-looking statements. Forward-
looking statements include the Company's financial performance outlook and
statements regarding goals, beliefs, strategies, objectives, plans or current
expectations. These statements involve known and unknown risks, uncertainties
and other factors which may cause the actual results to be materially different
from any future results, performance or achievements contemplated in the
forward-looking statements. Such factors include: economic conditions,
especially as they relate to commercial and consumer credit conditions and
business spending; commercial real estate property values, vacancy rates and
general conditions of financial liquidity for real estate transactions; the
effects of changes in foreign exchange rates in relation to the US dollar on
Canadian dollar, Australian dollar, UK pound sterling and Euro denominated
revenues and expenses; competition in markets served by the Company; labor
shortages or increases in commission, wage and benefit costs; disruptions or
security failures in information technology systems; and political conditions or
events, including elections, referenda, changes to international trade and
immigration policies, and any outbreak or escalation of terrorism or
hostilities.
Additional factors and explanatory information are identified in the Company's
Annual Information Form for the year ended December 31, 2016 under the heading
"Risk Factors" (which factors are adopted herein and a copy of which can be
obtained at www.sedar.com) and other periodic filings with Canadian and US
securities regulators. Forward looking statements contained in this press
release are made as of the date hereof and are subject to change. All forward-
looking statements in this press release are qualified by these cautionary
statements. Except as required by applicable law, Colliers undertakes no
obligation to publicly update or revise any forward-looking statement, whether
as a result of new information, future events or otherwise.
Summary financial information is provided in this press release. This press
release should be read in conjunction with the Company's quarterly financial
statements and MD&A to be made available on SEDAR at www.sedar.com.
Notes
1. Reconciliation of net earnings to adjusted EBITDA:
Adjusted EBITDA is defined as net earnings, adjusted to exclude: (i) income tax;
(ii) other expense (income); (iii) interest expense; (iv) depreciation and
amortization; (v) acquisition-related items; (vi) restructuring costs and (vii)
stock-based compensation expense. We use adjusted EBITDA to evaluate our own
operating performance and our ability to service debt, as well as an integral
part of our planning and reporting systems. Additionally, we use this measure in
conjunction with discounted cash flow models to determine the Company's overall
enterprise valuation and to evaluate acquisition targets. We present adjusted
EBITDA as a supplemental measure because we believe such measure is useful to
investors as a reasonable indicator of operating performance because of the low
capital intensity of the Company's service operations. We believe this measure
is a financial metric used by many investors to compare companies, especially in
the services industry. This measure is not a recognized measure of financial
performance under GAAP in the United States, and should not be considered as a
substitute for operating earnings, net earnings or cash flow from operating
activities, as determined in accordance with GAAP. Our method of calculating
adjusted EBITDA may differ from other issuers and accordingly, this measure may
not be comparable to measures used by other issuers. A reconciliation of net
earnings to adjusted EBITDA appears below.
Three months ended
(in thousands of US$) March 31
------------------------
2017 2016
------------ -----------
Net earnings $ 5,506 $ 4,032
Income tax 3,658 3,071
Other income, net (1,229 ) (600 )
Interest expense, net 2,942 2,364
------------ -----------
Operating earnings 10,877 8,867
Depreciation and amortization 12,027 11,034
Acquisition-related items 4,208 1,071
Restructuring costs 734 -
Stock-based compensation
expense 1,443 1,212
------------ -----------
Adjusted EBITDA $ 29,289 $ 22,184
------------ -----------
2. Reconciliation of net earnings and diluted net earnings (loss) per common
share to adjusted net earnings and adjusted earnings per share:
Adjusted earnings per share is defined as diluted net earnings (loss) per common
share, adjusted for the effect, after income tax, of: (i) the non-controlling
interest redemption increment; (ii) amortization expense related to intangible
assets recognized in connection with acquisitions; (iii) acquisition-related
items; (iv) restructuring costs and (v) stock-based compensation expense. We
believe this measure is useful to investors because it provides a supplemental
way to understand the underlying operating performance of the Company and
enhances the comparability of operating results from period to period. Adjusted
earnings per share is not a recognized measure of financial performance under
GAAP, and should not be considered as a substitute for diluted net earnings per
share, as determined in accordance with GAAP. Our method of calculating this
non-GAAP measure may differ from other issuers and, accordingly, this measure
may not be comparable to measures used by other issuers. A reconciliation of net
earnings to adjusted net earnings and of diluted net earnings (loss) per share
to adjusted earnings per share appears below.
Three months ended
(in thousands of US$) March 31
------------------------
2017 2016
------------ -----------
Net earnings $ 5,506 $ 4,032
Non-controlling interest share of earnings (2,113 ) (2,414 )
Amortization of intangible assets 6,050 5,637
Acquisition-related items 4,208 1,071
Restructuring costs 734 -
Stock-based compensation expense 1,443 1,212
Income tax on adjustments (2,010 ) (1,691 )
Non-controlling interest on adjustments (844 ) (502 )
------------ -----------
Adjusted net earnings $ 12,974 $ 7,345
------------ -----------
Three months ended
(in US$) March 31
------------------------
2017 2016
------------ -----------
Diluted net earnings (loss) per common
share $ - $ (0.19 )
Non-controlling interest redemption
increment 0.08 0.23
Amortization of intangible assets, net of
tax 0.10 0.09
Acquisition-related items 0.10 0.03
Restructuring costs, net of tax 0.01 -
Stock-based compensation expense, net of
tax 0.04 0.03
------------ -----------
Adjusted earnings per share $ 0.33 $ 0.19
------------ -----------
3. Local currency revenue growth rate and internal revenue growth
Percentage revenue variances presented on a local currency basis are calculated
by translating the current period results of our non-US dollar denominated
operations to US dollars using the foreign currency exchange rates from the
periods against which the current period results are being compared. Percentage
revenue variances presented on an internal growth basis are calculated assuming
acquired entities were owned for the entire current period as well as the entire
prior period. Revenue from acquired entities is estimated based on the operating
performance of each acquired entity for the year prior to the acquisition date.
We believe that these revenue growth rate methodologies provide a framework for
assessing the Company's performance and operations excluding the effects of
foreign currency exchange rate fluctuations and acquisitions. Since these
revenue growth rate measures are not calculated under GAAP, they may not be
comparable to similar measures used by other issuers.
COLLIERS INTERNATIONAL GROUP INC.
Condensed Consolidated Statements of Earnings (Loss)
(in thousands of US dollars, except per share amounts)
Three months
ended March 31
--------------------------
(unaudited) 2017 2016
------------- ------------
Revenues $ 422,843 $ 376,108
Cost of revenues 258,871 236,867
Selling, general and administrative
expenses 136,860 118,269
Depreciation 5,977 5,397
Amortization of intangible assets 6,050 5,637
Acquisition-related items (1) 4,208 1,071
------------- ------------
Operating earnings 10,877 8,867
Interest expense, net 2,942 2,364
Other income, net (1,229 ) (600 )
------------- ------------
Earnings before income tax 9,164 7,103
Income tax expense 3,658 3,071
------------- ------------
Net earnings 5,506 4,032
Non-controlling interest share of
earnings 2,113 2,414
Non-controlling interest redemption
increment 3,275 8,814
------------- ------------
Net earnings (loss) attributable to
Company $ 118 $ (7,196 )
------------- ------------
Net earnings (loss) per common share
Basic $ - $ (0.19 )
Diluted - (0.19 )
Adjusted earnings per share (2) $ 0.33 $ 0.19
------------- ------------
Weighted average common shares
(thousands)
Basic 38,720 38,558
Diluted 39,117 38,825
Notes to Condensed Consolidated Statements of Earnings (Loss)
(1) Acquisition-related items include transaction costs, contingent acquisition
consideration fair value adjustments, and contingent acquisition consideration-
related compensation expense.
(2) See definition and reconciliation above.
Condensed Consolidated Balance Sheets
(in thousands of US dollars)
March December March
(unaudited) 31, 2017 31, 2016 31, 2016
-------------- ----------------- -------------
Assets
Cash and cash equivalents $ 97,695 $ 113,148 $ 107,468
Accounts receivable 289,336 311,020 260,635
Prepaids and other assets 90,606 82,154 85,806
-------------- ----------------- -----------
Current assets 477,637 506,322 453,909
Other non-current assets 54,384 48,860 31,398
Fixed assets 69,169 65,274 63,937
Deferred income tax 70,993 82,252 97,389
Goodwill and intangible assets 586,145 487,563 476,574
-------------- ----------------- -------------
Total assets $ 1,258,328 $ 1,190,271 $ 1,123,207
-------------- ----------------- -------------
Liabilities and shareholders'
equity
Accounts payable and accrued
liabilities $ 396,683 $ 483,376 $ 381,455
Other current liabilities 30,259 24,890 18,435
Long-term debt - current 2,618 1,961 2,763
-------------- ----------------- -------------
Current liabilities 429,560 510,227 402,653
Long-term debt - non-current 402,370 260,537 346,132
Other liabilities 65,840 57,609 56,108
Deferred income tax 16,206 14,582 19,639
Redeemable non-controlling
interests 121,846 134,803 145,153
Shareholders' equity 222,506 212,513 153,522
-------------- ----------------- -------------
Total liabilities and equity $ 1,258,328 $ 1,190,271 $ 1,123,207
-------------- ----------------- -------------
Supplemental balance sheet
information
Total debt $ 404,988 $ 262,498 $ 348,895
Total debt, net of cash 307,293 149,350 241,427
Net debt / pro forma adjusted
EBITDA ratio 1.4 0.7 1.2
Consolidated Statements of Cash Flows
(in thousands of US dollars)
Three months ended
March 31
----------------------------
(unaudited) 2017 2016
-------------- -------------
Cash provided by (used in)
Operating activities
Net earnings $ 5,506 $ 4,032
Items not affecting cash:
Depreciation and amortization 12,027 11,034
Deferred income tax 1,178 657
Other 8,220 1,329
-------------- -------------
26,931 17,052
Net changes from assets /
liabilities
Accounts receivable 32,748 49,308
Payables and accruals (145,107 ) (101,194 )
Other 4,191 (8,306 )
Contingent acquisition
consideration paid (301 ) -
-------------- -------------
Net cash used in operating
activities (81,538 ) (43,140 )
-------------- -------------
Investing activities
Acquisition of businesses, net of
cash acquired (29,643 ) (36,575 )
Purchases of fixed assets (6,733 ) (4,187 )
Other investing activities (10,596 ) (6,142 )
-------------- -------------
Net cash used in investing
activities (46,972 ) (46,904 )
-------------- -------------
Financing activities
Increase in long-term debt, net 140,137 86,467
Purchases of non-controlling
interests, net (24,282 ) 620
Dividends paid to common
shareholders (1,932 ) (1,541 )
Distributions paid to non-
controlling interests (4,118 ) (5,116 )
Other financing activities (61 ) 1,190
-------------- -------------
Net cash provided by financing
activities 109,744 81,620
-------------- -------------
Effect of exchange rate changes on
cash 3,313 (258 )
-------------- -------------
Decrease in cash and cash
equivalents (15,453 ) (8,682 )
Cash and cash equivalents, beginning
of period 113,148 116,150
-------------- -------------
Cash and cash equivalents, end of
period $ 97,695 $ 107,468
-------------- -------------
Segmented Results
(in thousands of US dollars)
Asia
(unaudited) Americas EMEA Pacific Corporate Consolidated
----------- ------------ ---------- ------------ -------------
Three months
ended March 31
2017
Revenues $ 256,959 $ 89,022 $ 76,392 $ 470 $ 422,843
Adjusted
EBITDA 21,218 3,610 6,241 (1,780 ) 29,289
Operating
earnings
(loss) 11,477 (1,066 ) 4,856 (4,390 ) 10,877
2016
Revenues $ 210,545 $ 98,915 $ 66,441 $ 207 $ 376,108
Adjusted
EBITDA 21,611 (561 ) 3,282 (2,150 ) 22,182
Operating
earnings
(loss) 16,959 (5,889 ) 1,934 (4,137 ) 8,867
COMPANY CONTACTS:
Jay S. Hennick
Chairman & CEO
John B. Friedrichsen
CFO
(416) 960-9500
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Colliers International Group Inc. via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 02.05.2017 - 13:00 Uhr
Sprache: Deutsch
News-ID 539723
Anzahl Zeichen: 33068
contact information:
Town:
Seattle, WA
Kategorie:
Business News
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