We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
CBRE Group, Inc. | NASDAQ:CBRE | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0 | - |
Revenue of $3.2 billion, up 18% (20% local currency)Fee Revenue of $2.1 billion, up 9% (11% local currency)GAAP EPS of $0.31; Adjusted EPS of $0.50
CBRE Group, Inc. (NYSE:CBG) today reported solid financial results for the third quarter ended September 30, 2016.
Third-Quarter 2016 Results*
* All percentage changes versus prior-year periods throughout this press release are in U.S. dollars, except where noted.
Management Commentary
“Our results for the third quarter were solid and largely in line with our – as well as the market’s – expectations,” said Bob Sulentic, CBRE’s president and chief executive officer. “Our performance is notable when viewed against the exceptionally strong growth we posted in last year’s third quarter – when adjusted earnings per share increased 28% – and a backdrop of lower property sales volumes in most markets. In this environment, CBRE’s premier position in commercial real estate – with a deep, diverse, market-leading service offering – continues to serve our company and our clients particularly well.”
The Americas, the company’s largest business segment, saw revenue increase 14% (same in local currency). In EMEA (Europe, the Middle East & Africa), revenue rose by 30% (39% local currency), and in Asia Pacific (APAC), revenue increased 26% (23% local currency). Without the contributions from the acquired Global Workplace Solutions business, revenue increased 4% (5% local currency) in the Americas and 9% (6% local currency) in APAC. In EMEA, revenue without this acquisition increased 10% in local currency, but slipped 1% when converted to U.S. dollars.
In the UK, overall revenue grew by 20% in local currency, or 8% excluding the acquired Global Workplace Solutions business. This growth occurred despite the slowdown in the UK transaction market in the wake of Brexit.
Among the company’s business lines, occupier outsourcing exhibited very strong growth. Global revenue rose 50% (55% local currency), or 10% (16% local currency) without the contributions from the acquired Global Workplace Solutions accounts. Occupier outsourcing fee revenue rose 57% (63% local currency), or 11% (19% local currency) without the contributions from this acquisition. In local currency, double-digit growth in revenue and fee revenue was achieved in all three regions, before the contributions of the Global Workplace Solutions acquisition. CBRE signed 113 total outsourcing contracts (including facilities management, project management and transaction management) in the third quarter of 2016, including 52 expansions of existing client relationships – a record for the company.
Property sales activity was healthy by historical standards, but global sales revenue declined 7% compared with a very strong third quarter of 2015, when the company’s global property sales revenue rose by 19% on a local currency basis. EMEA saw strong growth in France, the Netherlands and Switzerland, which offset continued weakness in property sales in the UK in the wake of Brexit.
Commercial mortgage services revenue rose 23% (24% local currency) in the third quarter, driven by gains from mortgage servicing rights and increased loan originations for the Government Sponsored Enterprises to provide financing for multi-family assets.
Leasing revenue grew 1% (2% local currency) when compared with a very strong third quarter of 2015, which saw global leasing revenue increase 12% year over year. In the Americas, robust growth in Brazil, Canada and Mexico offset flat performance in the U.S. In APAC, leasing revenue increased 7% (4% local currency), led by Greater China, Japan and Singapore. EMEA leasing revenue rose 3% in local currency – a turn-around from a decline in the second quarter of 2016 – but fell 5% in U.S. dollars. A number of countries showed strength, notably France, Ireland, Poland and Switzerland.
Revenue from property management services rose by 3% (5% local currency), while fee revenue increased 1% (2% local currency). Valuation revenue slipped 3% (1% local currency) for the third quarter.
Development services once again performed well, contributing nearly $16 million of adjusted EBITDA for the third quarter of 2016. Global investment management’s $19 million of adjusted EBITDA for the quarter was down from the third quarter of 2015, reflecting robust carried-interest generated in the prior-year period that did not recur in the current quarter. Global assets under management (AUM) totaled $87.9 billion at the end of the third quarter of 2016, up $5.0 billion in local currency from the third quarter of 2015. Foreign currency movement over the past year limited the increase in U.S. dollars to $1.9 billion, reflecting the fact that approximately 60% of AUM, excluding securities, is in Europe and is generally denominated in Euro and pound sterling. Development projects in process totaled $7.1 billion, up $400 million from the third quarter of 2015.
CBRE’s overall business mix continued to shift toward greater contractual fee revenue5. For the company as a whole, contractual fee revenue was 42% of fee revenue, up from 37% in the third quarter of 2015 and 20% in the third quarter of 2006.
Third-Quarter 2016 Segment Results
The following tables present highlights of CBRE segment performance during the third quarter of 2016 (dollars in thousands):
Americas EMEA Asia Pacific % Change from Q3 2015 % Change from Q3 2015 % Change from Q3 2015 Q3 2016 USD LC Q3 2016 USD LC Q3 2016 USD LC Revenue $ 1,770,369 14 % 14 % $ 956,492 30 % 39 % $ 358,320 26 % 23 % Fee revenue 1,237,379 9 % 9 % 529,963 16 % 25 % 241,355 12 % 9 % Fee revenue, excluding GWS 1,127,521 3 % 3 % 407,616 -2 % 8 % 207,020 1 % -2 % EBITDA 186,274 -6 % -5 % 49,774 -12 % -7 % 26,744 -20 % -23 % Adjusted EBITDA 221,766 5 % 5 % 61,741 7 % 14 % 31,180 -10 % -14 % Global Investment Management Development Services % Change from Q3 2015 % Change from Q3 2015 ` Q3 2016 USD LC Q3 2016 USD LC Revenue $ 91,807 -20 % -16 % $ 16,499 -11 % -11 % EBITDA 6,054 -79 % -74 % 15,709 59 % 59 % Adjusted EBITDA 18,988 -38 % -33 % 15,709 59 % 59 %Third-quarter 2016 results were adjusted for select items including acquisition-related integration expenses and charges associated with a cost elimination program that is now complete. The company does not adjust for foreign currency movements, including currency translation and gains or losses from currency hedging. Accordingly, EBITDA and adjusted EBITDA were both impacted by foreign currency movements. The current quarter segment impact of foreign currency movements, including currency translation and the marking-to-market of currency hedges, was as follows (dollars in thousands):
Three Months Ended September 30, 2016 2015 Change Americas $ 413 $ (1,480 ) $ 1,893 EMEA 5,205 (1,728 ) 6,933 Asia Pacific (203 ) (1,112 ) 909 Global Investment Management 1,790 (1,340 ) 3,130 Net losses (gains) to EBITDA $ 7,205 $ (5,660 ) $ 12,865Nine-Month Results
Business Outlook
“CBRE has continued to produce strong results for our shareholders, as we invest in our people and platform, including digital initiatives, to drive long-term growth and create superior outcomes for our clients,” Mr. Sulentic said. “Commercial real estate fundamentals remain healthy in most parts of the world and the global economy continues to grow at a modest pace. CBRE – as the clear market leader – is well positioned to achieve strong long-term financial performance and widen our competitive advantage in the marketplace.”
The company continues to expect adjusted EPS for the full year of $2.15 to $2.30 – which represents solid growth of approximately 9% at the midpoint of the range.
Conference Call Details
The company’s third-quarter earnings conference call will be held today (Thursday, October 27, 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 October 27, 2016, and ending at midnight Eastern Time on November 3, 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 13645729. 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 (based on 2015 revenue). The company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services; and development services. 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; economic volatility and market uncertainty globally related to uncertainty surrounding the implementation and effect of the United Kingdom’s referendum to leave the European Union, including uncertainty in relation to the legal and regulatory framework that would apply to the United Kingdom and its relationship with remaining members of the European Union; 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 and our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2016 and June 30, 2016, 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 forward-looking guidance included in this release to the most directly comparable GAAP measure because this cannot be done without unreasonable effort due to the variability and low visibility with respect to costs related to acquisitions, carried interest incentive compensation and financing costs, which are potential adjustments to future earnings. We expect the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results.
The terms “fee revenue,” “adjusted net income,” “adjusted earnings per share” (or adjusted EPS), “EBITDA,” “adjusted EBITDA” and “contractual fee revenue” 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 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) exclude the effect of select charges from GAAP net income and GAAP earnings per diluted share as well as adjust the provision for income taxes for such charges. 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-elimination expenses and certain carried interest incentive compensation (reversal) expense 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 adjusted EBITDA further remove (from EBITDA) the impact of certain cash and non-cash charges related to acquisitions, cost-elimination expenses and certain carried interest incentive compensation (reversal) expense to align with the timing of associated revenue.
5 Contractual fee revenue refers to revenue derived from our Occupier Outsourcing, Property Management, Investment Management and Valuation businesses.
CBRE GROUP, INC.
OPERATING RESULTS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2016 AND 2015
(Dollars in thousands, except share data)
Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Revenue $ 3,193,487 $ 2,712,559 $ 9,247,758 $ 7,155,568 Costs and expenses: Cost of services 2,252,783 1,773,660 6,520,6294,552,411
Operating, administrative and other 686,723 636,157 2,011,535 1,785,393 Gains on currency hedges (193 ) (9,252 ) (1,197 ) (16,555 ) Depreciation and amortization 92,725 75,047 269,987 215,498 Total costs and expenses 3,032,038 2,475,612 8,800,954 6,536,747 Gain on disposition of real estate (1) 11,043 3,154 15,862 10,140 Operating income 172,492 240,101 462,666 628,961 Equity income from unconsolidated subsidiaries (1) 24,672 17,242 116,902 39,386 Other income (loss) 1,356 (4,945 ) 8,453 (4,927 ) Interest income 1,020 1,158 5,545 4,857 Interest expense 37,273 30,699 109,050 83,067 Write-off of financing costs on extinguished debt - - - 2,685 Income before provision for income taxes 162,267 222,857 484,516 582,525 Provision for income taxes 51,414 72,866 165,578 206,243 Net income 110,853 149,991 318,938 376,282 Less: Net income attributable to non-controlling interests (1) 6,690 868 10,940 9,193 Net income attributable to CBRE Group, Inc. $ 104,163 $ 149,123 $ 307,998 $ 367,089 Basic income per share: Net income per share attributable to CBRE Group, Inc. $ 0.31 $ 0.45 $ 0.92 $ 1.10Weighted average shares outstanding for basic income per share
335,770,122 332,684,487 334,949,606 332,223,036 Diluted income per share: Net income per share attributable to CBRE Group, Inc. $ 0.31 $ 0.44 $ 0.91 $ 1.09Weighted average shares outstanding for diluted income per share
338,488,975 336,561,877 338,053,297 336,140,923 EBITDA $ 284,555 $ 326,577 $ 847,068 $ 869,725 (1) Equity income from unconsolidated subsidiaries and gain on disposition of real estate, less net income attributable to non-controlling interests, includes income of $26.2 million and $11.1 million for the three months ended September 30, 2016 and 2015, respectively, and income of $107.0 million and $24.3 million for the nine months ended September 30, 2016 and 2015, respectively, attributable to Development Services but does not include significant related compensation expense (which is included in operating, administrative and other expenses). Equity income from unconsolidated subsidiaries and gain on disposition of real estate, net of non-controlling interests, and the related compensation expense, are all included in EBITDA in the Development Services segment.CBRE GROUP, INC.
SEGMENT RESULTS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2016 AND 2015
(Dollars in thousands)
Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 (1) 2016 2015 (1)Americas
Revenue $ 1,770,369 $ 1,556,648 $ 5,129,684 $ 4,218,753 Costs and expenses: Cost of services 1,252,503 1,046,245 3,583,526 2,757,871 Operating, administrative and other (2) 334,924 319,091 991,814 896,438 Depreciation and amortization 62,545 47,209 186,342 134,750 Operating income $ 120,397 $ 144,103 $ 368,002 $ 429,694 EBITDA $ 186,274 $ 197,379 $ 568,019 $ 581,397EMEA
Revenue $ 956,492 $ 737,863 $ 2,765,825 $ 1,817,601 Costs and expenses: Cost of services 740,824 542,037 2,188,281 1,305,487 Operating, administrative and other (2) 165,946 140,149 477,448 400,398 Depreciation and amortization 19,385 15,175 50,647 44,574 Operating income $ 30,337 $ 40,502 $ 49,449 $ 67,142 EBITDA $ 49,774 $ 56,666 $ 101,690 $ 114,328Asia Pacific
Revenue $ 358,320 $ 285,337 $ 1,023,162 $ 755,531 Costs and expenses: Cost of services 259,456 185,378 748,822 489,053 Operating, administrative and other (2) 72,177 66,724 216,601 189,091 Depreciation and amortization 4,479 3,728 12,957 11,357 Operating income $ 22,208 $ 29,507 $ 44,782 $ 66,030 EBITDA $ 26,744 $ 33,252 $ 57,673 $ 77,438Global Investment Management
Revenue $ 91,807 $ 114,094 $ 277,924 $ 318,371 Costs and expenses: Operating, administrative and other (2) 86,493 81,058 232,460 229,501 Depreciation and amortization 5,673 8,423 18,110 23,095 Operating (loss) income $ (359 ) $ 24,613 $ 27,354 $ 65,775 EBITDA $ 6,054 $ 29,397 $ 53,577 $ 80,390Development Services
Revenue $ 16,499 $ 18,617 $ 51,163 $ 45,312 Costs and expenses: Operating, administrative and other 26,990 19,883 92,015 53,410 Depreciation and amortization 643 512 1,931 1,722 Gain on disposition of real estate 11,043 3,154 15,862 10,140 Operating (loss) income $ (91 ) $ 1,376 $ (26,921 ) $ 320 EBITDA $ 15,709 $ 9,883 $ 66,109 $ 16,172 (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) Contractual fee revenue (iii) Net income attributable to CBRE Group, Inc., as adjusted (which we also refer to as “adjusted net income”) (iv) 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”) (v) EBITDA and adjusted EBITDANone of these measures is a recognized measurement under United States generally accepted accounting principles, or “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 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 Property Management 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 contractual fee revenue: the company believes investors may find this measure useful to analyze the company’s overall financial performance because it identifies revenue streams that are typically more stable over time.
With respect to adjusted net income, adjusted EPS, EBITDA and adjusted 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 adjusted 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 adjusted 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 adjusted 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 adjusted EBITDA and adjusted EPS as significant components when measuring our operating performance under our employee incentive compensation programs.
Fee revenue excludes the following from revenue: client reimbursed pass through costs largely associated with employees that are dedicated to client facilities and subcontracted vendor work performed for clients. Fee revenue is calculated as follows (dollars in thousands):
Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015Consolidated
Revenue $ 3,193,487 $ 2,712,559 $ 9,247,758 $ 7,155,568 Less: Pass through costs also recognized as revenue 1,076,484 772,856 3,189,909 1,980,502 Fee revenue $ 2,117,003 $ 1,939,703 $ 6,057,849 $ 5,175,066 Three Months Ended September 30, 2016 2015 2006 Non-contractual fee revenue $ 1,225,046 $ 1,224,669 $ 720,882 Contractual fee revenue 891,957 715,034 182,452 Fee revenue $ 2,117,003 $ 1,939,703 903,334 Plus: Pass through costs also recognized as revenue 64,607 Consolidated Revenue $ 967,941 Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015Occupier Outsourcing
Revenue (1) $ 1,494,466 $ 996,127 $ 4,437,964 $ 2,436,763 Less: Pass through costs also recognized as revenue 938,172 641,902 2,785,958 1,580,479 Fee revenue (1) $ 556,294 $ 354,225 $ 1,652,006 $ 856,284Property Management
Revenue (1) $ 261,813 $ 253,455 $ 774,109 $ 760,563 Less: Pass through costs also recognized as revenue 138,312 130,954 403,951 400,023 Fee revenue (1) $ 123,501 $ 122,501 $ 370,158 $ 360,540 _________________________ (1) Excludes associated leasing and sales revenue.Americas
Revenue $ 1,770,369 $ 1,556,648 $ 5,129,684 $ 4,218,753 Less: Pass through costs also recognized as revenue 532,990 422,911 1,575,645 1,164,248 Fee revenue $ 1,237,379 $ 1,133,737 $ 3,554,039 $ 3,054,505EMEA
Revenue $ 956,492 $ 737,863 $ 2,765,825 $ 1,817,601 Less: Pass through costs also recognized as revenue 426,529 279,866 1,257,975 626,563 Fee revenue $ 529,963 $ 457,997 $ 1,507,850 $ 1,191,038Asia Pacific
Revenue $ 358,320 $ 285,337 $ 1,023,162 $ 755,531 Less: Pass through costs also recognized as revenue 116,965 70,079 356,289 189,691 Fee revenue $ 241,355 $ 215,258 $ 666,873 $ 565,840Net 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 share data):
Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Net income attributable to CBRE Group, Inc. $ 104,163 $ 149,123 $ 307,998 $ 367,089 Plus / minus: Cost-elimination expenses 38,877 - 78,456 -Amortization expense related to certain intangible assets attributable to acquisitions
30,306 16,875 81,758 46,762 Integration and other costs related to acquisitions 28,596 16,904 73,520 24,922Carried interest incentive compensation (reversal) expense to align with the timing of associated revenue
(2,644 ) 1,150 (6,526 ) 493 Write-off of financing costs on extinguished debt - - - 2,685 Tax impact of adjusted items (31,271 ) (12,343 ) (71,415 ) (24,277 )Net income attributable to CBRE Group, Inc. shareholders, as adjusted
$ 168,027 $ 171,709 $ 463,791 $ 417,674Diluted income per share attributable to CBRE Group, Inc. shareholders, as adjusted
$ 0.50 $ 0.51 $ 1.37 $ 1.24Weighted average shares outstanding for diluted income per share
338,488,975 336,561,877 338,053,297 336,140,923EBITDA and adjusted EBITDA are calculated as follows (dollars in thousands):
Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Net income attributable to CBRE Group, Inc. $ 104,163 $ 149,123 $ 307,998 $ 367,089 Add: Depreciation and amortization 92,725 75,047 269,987 215,498 Interest expense 37,273 30,699 109,050 83,067 Write-off of financing costs on extinguished debt - - - 2,685 Provision for income taxes 51,414 72,866 165,578 206,243 Less: Interest income 1,020 1,158 5,545 4,857 EBITDA 284,555 326,577 847,068 869,725 Adjustments: Cost-elimination expenses (1) 38,877 - 78,456 - Integration and other costs related to acquisitions 28,596 16,904 73,520 24,922Carried interest incentive compensation (reversal) expense to align with the timing of associated revenue
(2,644 ) 1,150 (6,526 ) 493 Adjusted EBITDA $ 349,384 $ 344,631 $ 992,518 $ 895,140 (1) Represents cost-elimination expenses relating to a program initiated in the fourth quarter of 2015 to reduce the Company’s global cost structure after several years of significant revenue and related cost growth. Cost-elimination expenses incurred in the three and nine months ended September 30, 2016 consisted of $36.7 million and $73.6 million, respectively, of severance costs related to headcount reductions in connection with the program and $2.2 million and $4.9 million, respectively, of third-party contract termination costs.EBITDA and adjusted EBITDA for segments are calculated as follows (dollars in thousands):
Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 (1) 2016 2015 (1)Americas
Net income attributable to CBRE Group, Inc. $ 69,176 $ 92,008 $ 231,158 $ 286,796 Adjustments: Depreciation and amortization 62,545 47,209 186,342 134,750 Interest expense, net 21,492 9,692 64,583 17,485 Write-off of financing costs on extinguished debt - - - 2,685 Royalty and management service income (3,138 ) (2,703 ) (23,295 ) (9,668 ) Provision for income taxes 36,199 51,173 109,231 149,349 EBITDA 186,274 197,379 568,019 581,397 Integration and other costs related to acquisitions 17,518 14,462 46,207 21,870 Cost-elimination expenses 17,974 - 22,273 - Adjusted EBITDA $ 221,766 $ 211,841 $ 636,499 $ 603,267EMEA
Net income attributable to CBRE Group, Inc. $ 23,524 $ 24,535 $ 19,278 $ 24,921 Adjustments: Depreciation and amortization 19,385 15,175 50,647 44,574 Interest expense, net 4,078 10,834 11,916 33,656 Royalty and management service (income) expense (2,992 ) (1,452 ) 685 (4,313 ) Provision for income taxes 5,779 7,574 19,164 15,490 EBITDA 49,774 56,666 101,690 114,328 Integration and other costs related to acquisitions 9,929 969 22,401 999 Cost-elimination expenses 2,038 - 25,640 - Adjusted EBITDA $ 61,741 $ 57,635 $ 149,731 $ 115,327Asia Pacific
Net income attributable to CBRE Group, Inc. $ 11,576 $ 16,665 $ 14,068 $ 29,643 Adjustments: Depreciation and amortization 4,479 3,728 12,957 11,357 Interest expense, net 1,250 800 1,292 2,689 Royalty and management service expense 5,277 3,581 19,629 11,342 Provision for income taxes 4,162 8,478 9,727 22,407 EBITDA 26,744 33,252 57,673 77,438 Cost-elimination expenses 3,287 - 9,265 - Integration and other costs related to acquisitions 1,149 1,473 4,912 2,053 Adjusted EBITDA $ 31,180 $ 34,725 $ 71,850 $ 79,491Global Investment Management
Net (loss) income attributable to CBRE Group, Inc. $ (7,830 ) $ 10,717 $ 7,635 $ 18,546 Adjustments: Depreciation and amortization 5,673 8,423 18,110 23,095 Interest expense, net 7,611 8,060 23,124 23,562 Royalty and management service expense 853 574 2,981 2,639 (Benefit of) provision for income taxes (253 ) 1,623 1,727 12,548 EBITDA 6,054 29,397 53,577 80,390 Cost-elimination expenses 15,578 - 21,278 - Carried interest incentive compensation (reversal) expense (2,644 ) 1,150 (6,526 ) 493 Adjusted EBITDA $ 18,988 $ 30,547 $ 68,329 $ 80,883Development Services
Net income attributable to CBRE Group, Inc. $ 7,717 $ 5,198 $ 35,859 $ 7,183 Adjustments: Depreciation and amortization 643 512 1,931 1,722 Interest expense, net 1,822 155 2,590 818 Provision for income taxes 5,527 4,018 25,729 6,449 EBITDA $ 15,709 $ 9,883 $ 66,109 $ 16,172 (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)
September 30, December 31, 2016 2015 Assets: Cash and cash equivalents (1) $ 446,346 $ 540,403 Restricted cash 70,755 72,764 Receivables, net 2,399,161 2,471,740 Warehouse receivables (2) 1,642,394 1,767,107 Property and equipment, net 550,779 529,823 Goodwill and other intangibles, net 4,459,915 4,536,466 Investments in and advances to unconsolidated subsidiaries 249,883 217,943 Other assets, net 957,537 881,697 Total assets $ 10,776,770 $ 11,017,943 Liabilities: Current liabilities, excluding debt $ 2,819,730 $ 3,208,932 Warehouse lines of credit (2) 1,619,091 1,750,781 Revolving credit facility 83,000 - Senior term loans, net 856,664 877,899 5.00% senior notes, net 790,083 789,144 4.875% senior notes, net 591,016 590,469 5.25% senior notes, net 422,126 421,964 Other debt 52 79 Other long-term liabilities 613,505 619,605 Total liabilities 7,795,267 8,258,873 Equity: CBRE Group, Inc. stockholders' equity 2,935,025 2,712,652 Non-controlling interests 46,478 46,418 Total equity 2,981,503 2,759,070 Total liabilities and equity $ 10,776,770 $ 11,017,943 (1) Includes $79.1 million and $70.2 million of cash in consolidated funds and other entities not available for company use as of September 30, 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/20161027005431/en/
CBRE Group, Inc.Steve IacoSenior Managing DirectorInvestor Relations & Corporate Communications212-984-6535
1 Year CBRE Group, Inc. Chart |
1 Month CBRE Group, Inc. Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions