Colliers International Group Inc. (NASDAQ and TSX: CIGI)
(“Colliers” or the “Company”) today announced operating and
financial results for the second quarter ended June 30, 2024. All
amounts are in US dollars.
For the second quarter ended June 30, 2024,
revenues were $1.14 billion, up 6% (6% in local currency) and
Adjusted EBITDA (note 1) was $155.6 million, up 6% (6% in local
currency) versus the prior year quarter. Adjusted EPS (note 2) was
$1.36, relative to $1.31 in the prior year quarter. Second quarter
adjusted EPS would have been approximately $0.01 higher excluding
foreign exchange impacts. The GAAP operating earnings were $114.7
million as compared to $75.3 million in the prior year quarter. The
GAAP diluted net earnings per share were $0.73 relative to a
diluted net loss per share of $0.16 in the prior year quarter. The
second quarter GAAP diluted net earnings per share EPS would have
been approximately $0.01 higher excluding foreign exchange
impacts.
For the six months ended June 30, 2024, revenues
were $2.14 billion, up 5% (5% in local currency) and adjusted
EBITDA (note 1) was $264.3 million, up 5% (6% in local currency)
versus the prior year period. Adjusted EPS (note 2) was $2.13,
relative to $2.16 in the prior year period. Adjusted EPS for the
year would have been approximately $0.02 higher excluding foreign
exchange impacts. The GAAP operating earnings were $158.1 million
as compared to $97.4 million in the prior year period. The GAAP
diluted net earnings per share were $0.99 compared to a diluted net
loss per share of $0.61 in the prior year period. The GAAP diluted
net earnings per share would have been approximately $0.02 higher
excluding changes in foreign exchange rates.
“Colliers delivered solid second quarter results
with growth across all service lines and segments. Leasing revenues
exceeded expectations while Capital Markets saw modest growth for
the first time since the second quarter of 2022. As expected, our
high-value, recurring service lines – Outsourcing & Advisory
and Investment Management – continued to deliver solid and
predictable growth during the quarter. As our business continues to
meet expectations, we are maintaining our financial outlook for the
year,” said Jay S. Hennick, Chairman & CEO of Colliers.
“Earlier this week, we completed the previously
announced acquisition of Englobe, a leading multi-discipline
engineering, environmental, and inspection services platform. This
acquisition establishes Colliers as one of the top players in
Canada, complements our rapidly growing engineering operations in
the United States and Australia and aligns with our strategy of
expanding our high-value recurring revenue streams, which now
represents 72% of our earnings.”
“Since 2015, our committed leadership team, with
substantial ownership, has continued to reposition our company to
create growth and value for our shareholders. One step at a time,
we have grown Colliers into a global leader in commercial real
estate and expanded our business to include three complementary
growth engines – Real Estate Services, Engineering, and Investment
Management,” he concluded.
About ColliersColliers (NASDAQ,
TSX: CIGI) is a leading diversified professional services and
investment management company. With operations in 68 countries, our
22,000 enterprising professionals work collaboratively to provide
expert real estate and investment advice to clients. For more than
29 years, our experienced leadership with significant inside
ownership has delivered compound annual investment returns of
approximately 20% for shareholders. With annual revenues of more
than $4.4 billion and $96 billion of assets under management,
Colliers maximizes the potential of property and real assets to
accelerate the success of our clients, our investors and our
people. Learn more at corporate.colliers.com, X @Colliers or
LinkedIn.
Consolidated Revenues by Line of
Service
|
|
|
Three months ended |
Change |
Change |
|
Six months ended |
Change |
Change |
(in thousands of
US$) |
|
|
June 30 |
in US$ % |
in LC% |
|
June 30 |
in US$ % |
in LC% |
(LC = local currency) |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outsourcing &
Advisory |
|
$ |
541,603 |
|
$ |
519,578 |
4 |
% |
5 |
% |
|
$ |
1,039,092 |
|
$ |
974,508 |
7 |
% |
7 |
% |
Investment
Management (1) |
|
|
126,051 |
|
|
118,860 |
6 |
% |
6 |
% |
|
|
248,572 |
|
|
239,606 |
4 |
% |
4 |
% |
Leasing |
|
|
288,918 |
|
|
256,684 |
13 |
% |
13 |
% |
|
|
532,155 |
|
|
495,071 |
7 |
% |
8 |
% |
Capital
Markets |
|
|
182,796 |
|
|
182,916 |
0 |
% |
1 |
% |
|
|
321,529 |
|
|
334,756 |
-4 |
% |
-3 |
% |
Total revenues |
|
|
$ |
1,139,368 |
|
$ |
1,078,038 |
6 |
% |
6 |
% |
|
$ |
2,141,348 |
|
$ |
2,043,941 |
5 |
% |
5 |
% |
(1) Investment Management local currency revenues, excluding
pass-through carried interest, were up 6% and 3% for the three and
six-month periods ended June 30, 2024, respectively. |
Second quarter consolidated revenues were up 6%
on a local currency basis driven by growth across all service
lines, led by Leasing. Consolidated internal revenue growth
measured in local currencies was 5% (note 4) versus the prior year
quarter.
For the six months ended June 30, 2024,
consolidated revenues increased 5% on a local currency basis on
robust growth in Leasing and Outsourcing & Advisory, partly
offset by a market-driven slowdown in Capital Markets activity.
Consolidated internal revenues measured in local currencies were up
4% (note 4).
Segmented Second
Quarter ResultsRevenues in the Americas region totalled
$682.7 million, up 8% (8% in local currency) versus $631.3 million
in the prior year quarter, primarily attributable to higher Leasing
activity as well as robust broad-based growth in Outsourcing &
Advisory. Capital Markets revenues were up 2%. Adjusted EBITDA was
$75.7 million, up 9% (9% in local currency) relative to the prior
year quarter on higher revenues. GAAP operating earnings were $53.0
million, relative to $46.5 million in the prior year quarter.
Revenues in the EMEA region totalled $178.7
million, up 3% (3% in local currency) compared to $173.8 million in
the prior year quarter, attributable to higher Leasing activity and
modest growth in Outsourcing & Advisory revenues, while Capital
Markets revenues were essentially flat. Adjusted EBITDA was $6.8
million, up 7% (6% in local currency) compared to $6.3 million in
the prior year quarter on a lower cost base. The GAAP operating
loss was $0.7 million compared to a loss of $5.1 million in the
prior year quarter.
Revenues in the Asia Pacific region totalled
$151.9 million, down 1% (up 1% in local currency), compared to
$153.9 million in the prior year quarter. Adjusted EBITDA was $24.6
million, up 7% (9% in local currency) primarily on lower operating
costs. The GAAP operating earnings were $21.6 million, versus $19.6
million in the prior year quarter.
Investment Management revenues were $126.1
million relative to $118.9 million in the prior year quarter, up 6%
(6% in local currency) on incremental revenues from new investor
capital commitments. No passthrough revenues from historical
carried interest were recognized in the current and prior year
quarters. Adjusted EBITDA was $50.5 million, up 1% (1% in local
currency) compared to the prior year quarter on higher revenues,
partly offset by increased investments in new products, strategies
and fundraising capabilities. The GAAP operating earnings were
$55.0 million in the quarter versus $26.4 million in the prior year
quarter. AUM was $96.4 billion as of June 30, 2024 compared to
$96.3 billion as of March 31, 2024.
Unallocated global corporate costs as reported
in Adjusted EBITDA were $1.9 million in the second quarter, flat
relative to the prior year quarter. The corporate GAAP operating
loss for the quarter was $14.2 million, versus $12.1 million in the
second quarter of 2023.
Outlook for 2024The Company’s
outlook for 2024 is unchanged, except to reflect the partial year
impact of the acquisition of Englobe:
|
|
2024 Outlook |
Measure |
Actual 2023 |
Prior |
Englobe |
Revised (with Englobe) |
Revenue growth |
-3% |
|
+5% to +10% |
+3% |
|
+8% to +13% |
Adjusted EBITDA growth |
-6% |
|
+5% to +15% |
+3% |
|
+8% to +18% |
Adjusted EPS growth |
-23% |
|
+10% to +20% |
+1% |
|
+11% to +21% |
The financial outlook is based on the Company’s
best available information as of the date of this press release,
and remains subject to change based on numerous macroeconomic,
geopolitical, health, social and related factors. Continued
interest rate volatility and/or lack of credit availability for
commercial real estate transactions could materially impact the
outlook.
Revised Operating SegmentsWith
the acquisition of Englobe, the Company’s engineering and project
management capabilities have reached scale, with over 8,000
employees generating approximately $1.3 billion in annual revenues
across 15 countries.
Starting in the third quarter of 2024, the
Company will re-align its operating segment reporting to better
reflect the overall business and its three complementary growth
engines – Real Estate Services, Engineering, and Investment
Management. The Real Estate Services segment will be comprised of
the former Americas, EMEA and Asia Pacific regions, but excluding
engineering and project management.
Conference CallColliers will be
holding a conference call on Thursday, August 1, 2024 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
corporate.colliers.com in the Events section.
Forward-looking StatementsThis
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 consumer spending,
particularly in regions where the business may be concentrated;
commercial real estate and real asset values, vacancy rates and
general conditions of financial liquidity for real estate
transactions; trends in pricing and risk assumption for commercial
real estate services; the effect of significant movements in
capitalization rates across different asset types; a reduction by
companies in their reliance on outsourcing for their commercial
real estate needs, which would affect revenues and operating
performance; competition in the markets served by the Company; the
ability to attract new clients and to retain clients and renew
related contracts; the ability to attract new capital commitments
to Investment Management funds and retain existing capital under
management; the ability to retain and incentivize employees;
increases in wage and benefit costs; the effects of changes in
interest rates on the cost of borrowing; unexpected increases in
operating costs, such as insurance, workers’ compensation and
health care; changes in the frequency or severity of insurance
incidents relative to historical experience; the effects of changes
in foreign exchange rates in relation to the US dollar on the
Company’s Canadian dollar, Euro, Australian dollar and UK pound
sterling denominated revenues and expenses; the impact of pandemics
on client demand for the Company’s services, the ability of the
Company to deliver its services and the health and productivity of
its employees; the impact of global climate change; the impact of
political events including elections, referenda, trade policy
changes, immigration policy changes, hostilities, war and terrorism
on the Company’s operations; the ability to identify and make
acquisitions at reasonable prices and successfully integrate
acquired operations; the ability to execute on, and adapt to,
information technology strategies and trends; the ability to comply
with laws and regulations, including real estate investment
management and mortgage banking licensure, labour and employment
laws and regulations, as well as the anti-corruption laws and trade
sanctions; and changes in government laws and policies at the
federal, state/provincial or local level that may adversely impact
the business.
Additional information and risk factors are
identified in the Company’s other periodic filings with Canadian
and US securities regulators (which factors are adopted herein and
a copy of which can be obtained at www.sedarplus.ca. 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 consolidated financial statements
and MD&A to be made available on SEDAR+ at
www.sedarplus.ca.
This press release does not constitute an offer
to sell or a solicitation of an offer to purchase an interest in
any fund.
NotesNon-GAAP
Measures1. Reconciliation of net earnings to Adjusted
EBITDA
Adjusted EBITDA is defined as net earnings,
adjusted to exclude: (i) income tax; (ii) other income; (iii)
interest expense; (iv) loss on disposal of operations; (v)
depreciation and amortization, including amortization of mortgage
servicing rights (“MSRs”); (vi) gains attributable to MSRs; (vii)
acquisition-related items (including contingent acquisition
consideration fair value adjustments, contingent acquisition
consideration-related compensation expense and transaction costs);
(viii) restructuring costs and (ix) 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 |
|
Six months
ended |
|
June
30 |
|
June
30 |
(in thousands of US$) |
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
$ |
71,927 |
|
|
$ |
35,001 |
|
|
$ |
86,063 |
|
|
$ |
34,094 |
|
Income tax |
|
24,377 |
|
|
|
16,477 |
|
|
|
34,347 |
|
|
|
20,016 |
|
Other income, including equity earnings from
non-consolidated investments |
|
(932 |
) |
|
|
(886 |
) |
|
|
(1,583 |
) |
|
|
(4,206 |
) |
Interest expense, net |
|
19,376 |
|
|
|
24,670 |
|
|
|
39,248 |
|
|
|
47,502 |
|
Operating earnings |
|
114,748 |
|
|
|
75,262 |
|
|
|
158,075 |
|
|
|
97,406 |
|
Loss on disposal of operations |
|
- |
|
|
|
2,282 |
|
|
|
- |
|
|
|
2,282 |
|
Depreciation and amortization |
|
49,845 |
|
|
|
50,794 |
|
|
|
100,353 |
|
|
|
100,286 |
|
Gains attributable to MSRs |
|
(3,712 |
) |
|
|
(6,052 |
) |
|
|
(5,027 |
) |
|
|
(9,087 |
) |
Equity earnings from non-consolidated
investments |
|
796 |
|
|
|
532 |
|
|
|
1,232 |
|
|
|
3,686 |
|
Acquisition-related items |
|
(15,221 |
) |
|
|
11,668 |
|
|
|
(13,281 |
) |
|
|
38,136 |
|
Restructuring costs |
|
1,722 |
|
|
|
7,038 |
|
|
|
8,833 |
|
|
|
7,781 |
|
Stock-based compensation expense |
|
7,446 |
|
|
|
5,556 |
|
|
|
14,134 |
|
|
|
11,213 |
|
Adjusted EBITDA |
$ |
155,624 |
|
|
$ |
147,080 |
|
|
$ |
264,319 |
|
|
$ |
251,703 |
|
2. Reconciliation of net earnings and diluted
net earnings per common share to adjusted net earnings and Adjusted
EPS
Adjusted EPS is defined as diluted net earnings
per share adjusted for the effect, after income tax, of: (i) the
non-controlling interest redemption increment; (ii) loss on
disposal of operations; (iii) amortization expense related to
intangible assets recognized in connection with acquisitions and
MSRs; (iv) gains attributable to MSRs; (v) acquisition-related
items; (vi) restructuring costs and (vii) 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 EPS is not a
recognized measure of financial performance under GAAP, and should
not be considered as a substitute for diluted net earnings per
share from continuing operations, 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
per share to adjusted EPS appears below.
Similar to GAAP diluted EPS, Adjusted EPS is
calculated using the “if-converted” method of calculating earnings
per share in relation to the Convertible Notes, which were fully
converted or redeemed by June 1, 2023. As such, the interest (net
of tax) on the Convertible Notes is added to the numerator and the
additional shares issuable on conversion of the Convertible Notes
are added to the denominator of the earnings per share calculation
to determine if an assumed conversion is more dilutive than no
assumption of conversion. The “if-converted” method is used if the
impact of the assumed conversion is dilutive. The “if-converted”
method is dilutive for the Adjusted EPS calculation for all periods
where the Convertible Notes were outstanding.
|
|
Three months
ended |
|
Six months
ended |
|
June
30 |
|
June
30 |
(in thousands of US$) |
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
$ |
71,927 |
|
|
$ |
35,001 |
|
|
$ |
86,063 |
|
|
$ |
34,094 |
|
Non-controlling interest share of earnings |
|
(11,224 |
) |
|
|
(13,816 |
) |
|
|
(20,145 |
) |
|
|
(24,757 |
) |
Interest on Convertible Notes |
|
- |
|
|
|
561 |
|
|
|
- |
|
|
|
2,861 |
|
Loss on disposal of operations |
|
- |
|
|
|
2,282 |
|
|
|
- |
|
|
|
2,282 |
|
Amortization of intangible assets |
|
34,385 |
|
|
|
37,330 |
|
|
|
69,471 |
|
|
|
74,173 |
|
Gains attributable to MSRs |
|
(3,712 |
) |
|
|
(6,052 |
) |
|
|
(5,027 |
) |
|
|
(9,087 |
) |
Acquisition-related items |
|
(15,221 |
) |
|
|
11,668 |
|
|
|
(13,281 |
) |
|
|
38,136 |
|
Restructuring costs |
|
1,722 |
|
|
|
7,038 |
|
|
|
8,833 |
|
|
|
7,781 |
|
Stock-based compensation expense |
|
7,446 |
|
|
|
5,556 |
|
|
|
14,134 |
|
|
|
11,213 |
|
Income tax on adjustments |
|
(9,606 |
) |
|
|
(11,845 |
) |
|
|
(20,733 |
) |
|
|
(23,193 |
) |
Non-controlling interest on adjustments |
|
(7,141 |
) |
|
|
(5,773 |
) |
|
|
(13,271 |
) |
|
|
(10,926 |
) |
Adjusted net earnings |
$ |
68,576 |
|
|
$ |
61,950 |
|
|
$ |
106,044 |
|
|
$ |
102,577 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
Six months
ended |
|
June
30 |
|
June
30 |
(in US$) |
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net earnings (loss) per common
share(1) |
$ |
0.73 |
|
|
$ |
(0.14 |
) |
|
$ |
0.99 |
|
|
$ |
(0.57 |
) |
Interest on Convertible Notes, net of tax |
|
- |
|
|
|
0.01 |
|
|
|
- |
|
|
|
0.04 |
|
Non-controlling interest redemption increment |
|
0.48 |
|
|
|
0.59 |
|
|
|
0.33 |
|
|
|
0.77 |
|
Loss on disposal of operations |
|
- |
|
|
|
0.05 |
|
|
|
- |
|
|
|
0.05 |
|
Amortization expense, net of tax |
|
0.41 |
|
|
|
0.49 |
|
|
|
0.88 |
|
|
|
0.97 |
|
Gains attributable to MSRs, net of tax |
|
(0.04 |
) |
|
|
(0.07 |
) |
|
|
(0.06 |
) |
|
|
(0.11 |
) |
Acquisition-related items |
|
(0.36 |
) |
|
|
0.19 |
|
|
|
(0.37 |
) |
|
|
0.70 |
|
Restructuring costs, net of tax |
|
0.02 |
|
|
|
0.11 |
|
|
|
0.14 |
|
|
|
0.12 |
|
Stock-based compensation expense, net of tax |
|
0.12 |
|
|
|
0.08 |
|
|
|
0.22 |
|
|
|
0.19 |
|
Adjusted EPS |
$ |
1.36 |
|
|
$ |
1.31 |
|
|
$ |
2.13 |
|
|
$ |
2.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
weighted average shares for Adjusted EPS (thousands) |
|
50,479 |
|
|
|
47,422 |
|
|
|
49,671 |
|
|
|
47,442 |
|
(1) Amounts shown reflect the "if-converted"
method's dilutive impact on the adjusted EPS calculation. |
3. Reconciliation of net cash flow from
operations to free cash flow
Free cash flow is defined as net cash flow from
operating activities plus contingent acquisition consideration
paid, less purchases of fixed assets, plus cash collections on AR
Facility deferred purchase price less distributions to
non-controlling interests. We use free cash flow as a measure to
evaluate and monitor operating performance as well as our ability
to service debt, fund acquisitions and pay dividends to
shareholders. We present free cash flow as a supplemental measure
because we believe this measure is a financial metric used by many
investors to compare valuation and liquidity measures across
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 free cash flow may differ from other issuers and
accordingly, this measure may not be comparable to measures used by
other issuers. A reconciliation of net cash flow from operating
activities to free cash flow appears below.
|
|
Three months
ended |
|
Six months
ended |
|
June
30 |
|
June
30 |
(in thousands of US$) |
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating
activities |
$ |
141,189 |
|
|
$ |
98,973 |
|
|
$ |
3,574 |
|
|
$ |
(33,595 |
) |
Contingent acquisition consideration paid |
|
300 |
|
|
|
2,719 |
|
|
|
3,038 |
|
|
|
2,991 |
|
Purchase of fixed assets |
|
(12,480 |
) |
|
|
(22,179 |
) |
|
|
(29,353 |
) |
|
|
(41,062 |
) |
Cash collections on AR Facility deferred purchase
price |
|
34,930 |
|
|
|
28,539 |
|
|
|
68,848 |
|
|
|
59,311 |
|
Distributions paid to non-controlling
interests |
|
(38,521 |
) |
|
|
(40,059 |
) |
|
|
(48,827 |
) |
|
|
(51,120 |
) |
Free cash flow |
$ |
125,418 |
|
|
$ |
67,993 |
|
|
$ |
(2,720 |
) |
|
$ |
(63,475 |
) |
4. Local currency revenue and Adjusted EBITDA
growth rate and internal revenue growth rate measures
Percentage revenue and Adjusted EBITDA 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 no impact from acquired
entities in the current and prior periods. Revenue from acquired
entities, including any foreign exchange impacts, are treated as
acquisition growth until the respective anniversaries of the
acquisitions. 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.
5. Assets under management
We use the term assets under management (“AUM”)
as a measure of the scale of our Investment Management operations.
AUM is defined as the gross market value of operating assets and
the projected gross cost of development assets of the funds,
partnerships and accounts to which we provide management and
advisory services, including capital that such funds, partnerships
and accounts have the right to call from investors pursuant to
capital commitments. Our definition of AUM may differ from those
used by other issuers and as such may not be directly comparable to
similar measures used by other issuers.
6. Adjusted EBITDA from recurring revenue
percentage
Adjusted EBITDA from recurring revenue
percentage is computed on a trailing twelve-month basis and
represents the proportion of Adjusted EBITDA (note 1) that is
derived from Outsourcing & Advisory and Investment Management
service lines. Both these service lines represent medium to
long-term duration revenue streams that are either contractual or
repeatable in nature. Adjusted EBITDA for this purpose is
calculated in the same manner as for our debt agreement covenant
calculation purposes, incorporating the expected full year impact
of business acquisitions and dispositions.
Colliers
International Group Inc. |
Condensed
Consolidated Statements of Earnings (Loss) |
(in thousands of
US$, except per share amounts) |
|
|
|
|
|
Three
months |
|
|
Six
months |
|
|
|
|
|
ended June
30 |
|
|
ended June
30 |
(unaudited) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenues |
|
$ |
1,139,368 |
|
|
$ |
1,078,038 |
|
|
$ |
2,141,348 |
|
|
$ |
2,043,941 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues |
|
|
687,062 |
|
|
|
640,650 |
|
|
|
1,293,307 |
|
|
|
1,226,910 |
|
Selling, general and administrative expenses |
|
|
302,934 |
|
|
|
297,382 |
|
|
|
602,894 |
|
|
|
578,921 |
|
Depreciation |
|
|
15,460 |
|
|
|
13,464 |
|
|
|
30,882 |
|
|
|
26,113 |
|
Amortization of intangible assets |
|
|
34,385 |
|
|
|
37,330 |
|
|
|
69,471 |
|
|
|
74,173 |
|
Acquisition-related items (1) |
|
|
(15,221 |
) |
|
|
11,668 |
|
|
|
(13,281 |
) |
|
|
38,136 |
|
Loss on disposal of operations |
|
|
- |
|
|
|
2,282 |
|
|
|
- |
|
|
|
2,282 |
|
Operating earnings |
|
|
114,748 |
|
|
|
75,262 |
|
|
|
158,075 |
|
|
|
97,406 |
|
Interest expense, net |
|
|
19,376 |
|
|
|
24,670 |
|
|
|
39,248 |
|
|
|
47,502 |
|
Equity earnings from non-consolidated
investments |
|
|
(796 |
) |
|
|
(532 |
) |
|
|
(1,232 |
) |
|
|
(3,686 |
) |
Other income |
|
|
(136 |
) |
|
|
(354 |
) |
|
|
(351 |
) |
|
|
(520 |
) |
Earnings before income tax |
|
|
96,304 |
|
|
|
51,478 |
|
|
|
120,410 |
|
|
|
54,110 |
|
Income tax |
|
|
24,377 |
|
|
|
16,477 |
|
|
|
34,347 |
|
|
|
20,016 |
|
Net earnings |
|
|
71,927 |
|
|
|
35,001 |
|
|
|
86,063 |
|
|
|
34,094 |
|
Non-controlling interest share of earnings |
|
|
11,224 |
|
|
|
13,816 |
|
|
|
20,145 |
|
|
|
24,757 |
|
Non-controlling interest redemption increment |
|
|
23,979 |
|
|
|
28,036 |
|
|
|
16,537 |
|
|
|
36,340 |
|
Net earnings (loss) attributable to
Company |
|
$ |
36,724 |
|
|
$ |
(6,851 |
) |
|
$ |
49,381 |
|
|
$ |
(27,003 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) per common
share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.73 |
|
|
$ |
(0.15 |
) |
|
$ |
1.00 |
|
|
$ |
(0.61 |
) |
|
Diluted (2) |
|
$ |
0.73 |
|
|
$ |
(0.16 |
) |
|
$ |
0.99 |
|
|
$ |
(0.61 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS (3) |
|
$ |
1.36 |
|
|
$ |
1.31 |
|
|
$ |
2.13 |
|
|
$ |
2.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares (thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
50,239 |
|
|
|
45,069 |
|
|
|
49,374 |
|
|
|
44,064 |
|
|
Diluted |
|
|
|
50,479 |
|
|
|
45,362 |
|
|
|
49,671 |
|
|
|
44,064 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes to
Condensed Consolidated Statements of Earnings |
(1) |
Acquisition-related items include contingent acquisition
consideration fair value adjustments, contingent acquisition
consideration-related compensation expense and transaction
costs. |
(2) |
Diluted EPS is calculated using
the “if-converted” method of calculating earnings per share in
relation to the Convertible Notes, which were fully converted or
redeemed by June 1, 2023. As such, the interest (net of tax) on the
Convertible Notes is added to the numerator and the additional
shares issuable on conversion of the Convertible Notes are added to
the denominator of the earnings per share calculation to determine
if an assumed conversion is more dilutive than no assumption of
conversion. The “if-converted” method is used if the impact of the
assumed conversion is dilutive. The “if-converted” method was
dilutive for the three months ended June 30, 2023 and anti-dilutive
for the six months ended June 30, 2023. |
(3) |
See definition and reconciliation
above. |
Colliers
International Group Inc. |
|
|
|
|
|
|
|
|
Condensed
Consolidated Balance Sheets |
|
|
|
|
|
|
|
|
(in thousands of
US$) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
June 30, |
(unaudited) |
2024 |
|
2023 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Cash and cash
equivalents |
$ |
162,625 |
|
$ |
181,134 |
|
$ |
172,371 |
Restricted cash
(1) |
|
78,060 |
|
|
37,941 |
|
|
85,207 |
Accounts
receivable and contract assets |
|
723,531 |
|
|
726,764 |
|
|
669,311 |
Mortgage warehouse
receivables (2) |
|
140,974 |
|
|
177,104 |
|
|
77,443 |
Prepaids and other
assets |
|
329,716 |
|
|
306,829 |
|
|
287,490 |
Warehouse fund
assets |
|
49,285 |
|
|
44,492 |
|
|
41,084 |
|
Current
assets |
|
1,484,191 |
|
|
1,474,264 |
|
|
1,332,906 |
Other non-current
assets |
|
212,301 |
|
|
188,745 |
|
|
182,305 |
Warehouse fund
assets |
|
286,171 |
|
|
47,536 |
|
|
- |
Fixed assets |
|
201,315 |
|
|
202,837 |
|
|
182,944 |
Operating lease
right-of-use assets |
|
380,699 |
|
|
390,565 |
|
|
365,198 |
Deferred tax
assets, net |
|
58,902 |
|
|
59,468 |
|
|
67,959 |
Goodwill and
intangible assets |
|
3,048,187 |
|
|
3,118,711 |
|
|
3,167,063 |
|
Total
assets |
$ |
5,671,766 |
|
$ |
5,482,126 |
|
$ |
5,298,375 |
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity |
|
|
|
|
|
|
|
|
Accounts payable
and accrued liabilities |
$ |
966,978 |
|
$ |
1,104,935 |
|
$ |
1,008,318 |
Other current
liabilities |
|
97,862 |
|
|
75,764 |
|
|
101,528 |
Long-term debt -
current |
|
9,618 |
|
|
1,796 |
|
|
8,960 |
Mortgage warehouse
credit facilities (2) |
|
132,869 |
|
|
168,780 |
|
|
70,009 |
Operating lease
liabilities - current |
|
87,350 |
|
|
89,938 |
|
|
88,659 |
Liabilities
related to warehouse fund assets |
|
146,636 |
|
|
- |
|
|
- |
|
Current
liabilities |
|
1,441,313 |
|
|
1,441,213 |
|
|
1,277,474 |
Long-term debt -
non-current |
|
1,354,241 |
|
|
1,500,843 |
|
|
1,659,461 |
Operating lease
liabilities - non-current |
|
371,618 |
|
|
375,454 |
|
|
348,707 |
Other
liabilities |
|
123,691 |
|
|
151,333 |
|
|
157,379 |
Deferred tax
liabilities, net |
|
37,635 |
|
|
43,191 |
|
|
44,722 |
Liabilities
related to warehouse fund assets |
|
43,000 |
|
|
47,536 |
|
|
- |
Redeemable
non-controlling interests |
|
1,105,008 |
|
|
1,072,066 |
|
|
1,093,696 |
Shareholders'
equity |
|
1,195,260 |
|
|
850,490 |
|
|
716,936 |
|
Total liabilities and equity |
$ |
5,671,766 |
|
$ |
5,482,126 |
|
$ |
5,298,375 |
|
|
|
|
|
|
|
|
|
|
Supplemental balance sheet information |
|
|
|
|
|
|
|
|
Total debt
(3) |
$ |
1,363,859 |
|
$ |
1,502,639 |
|
$ |
1,668,421 |
Total debt, net of
cash and cash equivalents (3) |
|
1,201,234 |
|
|
1,321,505 |
|
|
1,496,050 |
Net debt / pro
forma adjusted EBITDA ratio (4) |
|
2.0 |
|
|
2.2 |
|
|
2.4 |
Notes to Condensed Consolidated Balance
Sheets |
(1) |
Restricted
cash consists primarily of cash amounts set aside to satisfy legal
or contractual requirements arising in the normal course of
business. |
(2) |
Mortgage warehouse receivables represent mortgage loans
receivable, the majority of which are offset by borrowings under
mortgage warehouse credit facilities which fund loans that
financial institutions have committed to purchase. |
(3) |
Excluding mortgage warehouse credit facilities. |
(4) |
Net debt for financial leverage ratio excludes restricted cash
and mortgage warehouse credit facilities, in accordance with debt
agreements. |
Colliers International Group
Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of Cash
Flows |
|
|
|
|
|
|
|
(in thousands of US$) |
|
|
|
|
Three months
ended |
|
|
Six months
ended |
|
|
|
|
June
30 |
|
|
June
30 |
(unaudited) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash provided by (used in) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
|
$ |
71,927 |
|
|
$ |
35,001 |
|
|
$ |
86,063 |
|
|
$ |
34,094 |
|
Items not affecting cash: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
and amortization |
|
|
49,845 |
|
|
|
50,794 |
|
|
|
100,353 |
|
|
|
100,286 |
|
|
Loss on disposal of operations |
|
|
- |
|
|
|
2,282 |
|
|
|
- |
|
|
|
2,282 |
|
|
Gains attributable to mortgage servicing rights |
|
|
(3,712 |
) |
|
|
(6,052 |
) |
|
|
(5,027 |
) |
|
|
(9,087 |
) |
|
Gains attributable to the fair value of loan |
|
|
|
|
|
|
|
|
|
|
|
|
|
premiums and origination fees |
|
|
(3,424 |
) |
|
|
(4,009 |
) |
|
|
(5,623 |
) |
|
|
(8,026 |
) |
|
Deferred income tax |
|
|
(3,406 |
) |
|
|
(10,915 |
) |
|
|
(7,395 |
) |
|
|
(21,904 |
) |
|
Other |
|
|
1,686 |
|
|
|
31,212 |
|
|
|
15,148 |
|
|
|
66,521 |
|
|
|
|
|
112,916 |
|
|
|
98,313 |
|
|
|
183,519 |
|
|
|
164,166 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase in accounts receivable, prepaid |
|
|
|
|
|
|
|
|
|
|
|
|
|
expenses and other assets |
|
|
(98,930 |
) |
|
|
(26,970 |
) |
|
|
(94,289 |
) |
|
|
(56,725 |
) |
Increase (decrease) in accounts payable,
accrued |
|
|
|
|
|
|
|
|
|
|
|
|
|
expenses and other liabilities |
|
|
43,740 |
|
|
|
(2,654 |
) |
|
|
(2,902 |
) |
|
|
457 |
|
Decrease (increase) in accrued compensation |
|
|
59,914 |
|
|
|
26,678 |
|
|
|
(87,018 |
) |
|
|
(153,630 |
) |
Contingent acquisition consideration paid |
|
|
(300 |
) |
|
|
(2,719 |
) |
|
|
(3,038 |
) |
|
|
(2,991 |
) |
Mortgage origination activities, net |
|
|
3,694 |
|
|
|
6,285 |
|
|
|
7,192 |
|
|
|
9,070 |
|
Sales to AR Facility, net |
|
|
20,155 |
|
|
|
40 |
|
|
|
110 |
|
|
|
6,058 |
|
Net cash provided by (used in) operating
activities |
|
|
141,189 |
|
|
|
98,973 |
|
|
|
3,574 |
|
|
|
(33,595 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of businesses, net of cash
acquired |
|
|
(17,772 |
) |
|
|
(59,698 |
) |
|
|
(17,772 |
) |
|
|
(59,698 |
) |
Purchases of fixed assets |
|
|
(12,480 |
) |
|
|
(22,179 |
) |
|
|
(29,353 |
) |
|
|
(41,062 |
) |
Purchases of warehouse fund assets |
|
|
(220,917 |
) |
|
|
(2,580 |
) |
|
|
(257,343 |
) |
|
|
(40,576 |
) |
Proceeds from disposal of warehouse fund
assets |
|
|
71,494 |
|
|
|
- |
|
|
|
76,438 |
|
|
|
44,000 |
|
Cash collections on AR Facility deferred purchase
price |
|
|
34,930 |
|
|
|
28,539 |
|
|
|
68,848 |
|
|
|
59,311 |
|
Other investing activities |
|
|
(22,718 |
) |
|
|
(8,476 |
) |
|
|
(58,133 |
) |
|
|
(29,543 |
) |
Net cash used in investing activities |
|
|
(167,463 |
) |
|
|
(64,394 |
) |
|
|
(217,315 |
) |
|
|
(67,568 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
Increase in long-term debt, net |
|
|
106,528 |
|
|
|
47,248 |
|
|
|
1,476 |
|
|
|
219,668 |
|
Purchases of non-controlling interests, net |
|
|
(7,083 |
) |
|
|
(3,789 |
) |
|
|
(9,737 |
) |
|
|
(16,333 |
) |
Dividends paid to common shareholders |
|
|
- |
|
|
|
- |
|
|
|
(7,132 |
) |
|
|
(6,440 |
) |
Distributions paid to non-controlling
interests |
|
|
(38,521 |
) |
|
|
(40,059 |
) |
|
|
(48,827 |
) |
|
|
(51,120 |
) |
Issuance of subordinate voting shares |
|
|
- |
|
|
|
- |
|
|
|
286,924 |
|
|
|
- |
|
Other financing activities |
|
|
2,964 |
|
|
|
(1,350 |
) |
|
|
17,093 |
|
|
|
13,637 |
|
Net cash provided by financing activities |
|
|
63,888 |
|
|
|
2,050 |
|
|
|
239,797 |
|
|
|
159,412 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash, |
|
|
|
|
|
|
|
|
|
|
|
|
|
cash equivalents and restricted cash |
|
|
(2,386 |
) |
|
|
(1,704 |
) |
|
|
(4,446 |
) |
|
|
287 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash and cash |
|
|
|
|
|
|
|
|
|
|
|
|
|
equivalents and restricted cash |
|
|
35,228 |
|
|
|
34,925 |
|
|
|
21,610 |
|
|
|
58,536 |
|
Cash and cash equivalents and |
|
|
|
|
|
|
|
|
|
|
|
|
|
restricted cash, beginning of period |
|
|
205,457 |
|
|
|
222,653 |
|
|
|
219,075 |
|
|
|
199,042 |
|
Cash and cash equivalents and |
|
|
|
|
|
|
|
|
|
|
|
|
|
restricted cash, end
of period |
|
$ |
240,685 |
|
|
$ |
257,578 |
|
|
$ |
240,685 |
|
|
$ |
257,578 |
|
Colliers
International Group Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segmented
Results |
(in thousands of
US dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia |
|
Investment |
|
|
|
|
(unaudited) |
Americas |
|
EMEA |
|
Pacific |
|
Management |
|
Corporate |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended June 30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
682,679 |
|
$ |
178,650 |
|
|
$ |
151,884 |
|
$ |
126,051 |
|
$ |
104 |
|
|
$ |
1,139,368 |
|
Adjusted
EBITDA |
|
75,667 |
|
|
6,777 |
|
|
|
24,553 |
|
|
50,489 |
|
|
(1,862 |
) |
|
|
155,624 |
|
Operating earnings
(loss) |
|
53,001 |
|
|
(661 |
) |
|
|
21,567 |
|
|
55,032 |
|
|
(14,191 |
) |
|
|
114,748 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
631,332 |
|
$ |
173,818 |
|
|
$ |
153,915 |
|
$ |
118,860 |
|
$ |
113 |
|
|
$ |
1,078,038 |
|
Adjusted EBITDA |
|
69,588 |
|
|
6,315 |
|
|
|
23,032 |
|
|
50,042 |
|
|
(1,897 |
) |
|
|
147,080 |
|
Operating earnings (loss) |
|
46,450 |
|
|
(5,053 |
) |
|
|
19,554 |
|
|
26,407 |
|
|
(12,096 |
) |
|
|
75,262 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia |
|
Investment |
|
|
|
|
|
Americas |
|
EMEA |
|
Pacific |
|
Management |
|
Corporate |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
ended June 30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
1,289,090 |
|
$ |
325,218 |
|
|
$ |
278,241 |
|
$ |
248,572 |
|
$ |
227 |
|
|
$ |
2,141,348 |
|
Adjusted
EBITDA |
|
130,551 |
|
|
(5,209 |
) |
|
|
39,144 |
|
|
103,339 |
|
|
(3,506 |
) |
|
|
264,319 |
|
Operating earnings
(loss) |
|
82,038 |
|
|
(21,122 |
) |
|
|
33,107 |
|
|
93,912 |
|
|
(29,860 |
) |
|
|
158,075 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
1,212,883 |
|
$ |
317,189 |
|
|
$ |
274,008 |
|
$ |
239,606 |
|
$ |
255 |
|
|
$ |
2,043,941 |
|
Adjusted EBITDA |
|
123,451 |
|
|
(4,946 |
) |
|
|
31,081 |
|
|
104,936 |
|
|
(2,819 |
) |
|
|
251,703 |
|
Operating earnings (loss) |
|
79,321 |
|
|
(30,087 |
) |
|
|
24,593 |
|
|
41,211 |
|
|
(17,632 |
) |
|
|
97,406 |
COMPANY CONTACTS:Jay S. HennickChairman & Chief Executive
Officer
Chris McLernonChief Executive Officer, Real Estate
Services
Christian MayerChief Financial Officer(416) 960-9500
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