Colliers Reports Third Quarter Results

Colliers International Group Inc. (NASDAQ and TSX: CIGI) (“Colliers” or the “Company”) today announced operating and financial results for the third quarter ended September 30, 2024. All amounts are in US dollars.

For the third quarter ended September 30, 2024, revenues were $1.18 billion, up 12% (11% in local currency) and Adjusted EBITDA (note 1) was $154.6 million, up 7% (6% in local currency) versus the prior year quarter. Adjusted EPS (note 2) was $1.32, up 11% from $1.19 in the prior year quarter. Third quarter adjusted EPS would have been approximately $0.01 lower excluding foreign exchange impacts. The GAAP operating earnings were $109.7 million as compared to $70.9 million in the prior year quarter. The GAAP diluted net earnings per share were $0.73, up 38% from $0.53 in the prior year quarter. The third quarter GAAP diluted net earnings per share EPS would have been approximately $0.01 lower excluding foreign exchange impacts.

For the nine months ended September 30, 2024, revenues were $3.32 billion, up 7% (7% in local currency) and adjusted EBITDA (note 1) was $419.0 million, up 6% (6% in local currency) versus the prior year period. Adjusted EPS (note 2) was $3.46, relative to $3.36 in the prior year period. Adjusted EPS were not significantly impacted by changes in foreign exchange rates. The GAAP operating earnings were $267.8 million compared to $168.3 million in the prior year period, favourably impacted by the reversal of contingent consideration expense related to an acquisition. The GAAP diluted net earnings per share were $1.73 compared to a diluted net loss per share of $0.04 in the prior year period. The GAAP diluted net earnings per share were not significantly impacted by changes in foreign exchange rates.

As previously announced, this quarter, Colliers re-aligned its operating segments to better reflect the value and growth potential of its three complementary engines – Real Estate Services, Engineering, and Investment Management. The Real Estate Services segment encompasses the former Americas, EMEA, and Asia Pacific regions, excluding engineering and project management, which are now reported within the new Engineering segment. The Investment Management segment remains unchanged. Comparative periods have been recast to reflect this revised segmentation.

“This quarter, Colliers delivered solid growth across all three segments,” said Jay S. Hennick, Chairman & CEO of Colliers. “Engineering grew by 21%, driven by strategic acquisitions. In Real Estate Services, Capital Markets revenues rose a strong 17%, exceeding expectations. Investment Management revenue, excluding pass-through performance fees, was up slightly though fundraising remained below expectations. AUM was up $2.4 billion during the quarter reaching $98.8 billion, up from $96.4 billion on June 30, 2024.”

“We completed the acquisition of Englobe during the quarter, creating a substantial new growth platform in Canada. After the quarter, we further added GWAL in Canada, and Pritchard Francis and TTM in Australia. With a robust M&A pipeline, we are well positioned to continue growing and strengthening our operations for the long-term.”

“Over the past decade, step by step, Colliers has transformed into a uniquely differentiated global professional services and investment management firm. We have relentlessly focused on expanding and diversifying our global operations, while adding new growth engines that deliver recurring revenue streams. Today, these recurring revenues contribute over 70% of our earnings, bringing unprecedented balance, resilience and predictability – all of which drive greater shareholder value.”

“With experienced leadership, significant inside ownership, and a proven 30-year track record of delivering 20% annualized returns, we are well positioned to sustain mid-to high-single digit growth going forward. As we enter 2025, we anticipate additional upside from an improving capital markets environment, expanded investment strategies and capital raising opportunities in Investment Management and continued incremental growth through acquisitions across all three segments,” he concluded.

About ColliersColliers (NASDAQ, TSX: CIGI) is a leading global diversified professional services company, specializing in commercial real estate services, engineering consultancy and investment management. With operations in 70 countries, our 22,000 enterprising professionals provide exceptional service and expert advice to clients. For nearly 30 years, our experienced leadership – with substantial inside ownership – has consistently delivered approximately 20% compound annual investment returns for shareholders. With annual revenues exceeding $4.5 billion and $99 billion of assets under management, Colliers maximizes the potential of property, infrastructure and real assets to accelerate the success of our clients, investors and people. Learn more at corporate.colliers.com, X @Colliers or LinkedIn.

Consolidated Revenues by Line of Service

			Three months ended					Change		Change			Nine months ended					Change		Change
(in thousands of US$)			September 30					in US$ %		in LC%			September 30					in US$ %		in LC%
(LC = local currency)			2024			2023							2024			2023
Investment Management (1)			$	127,405			118,717	7	%	7	%		$	375,977		$	358,323	5	%	5	%
Engineering			$	316,624			259,925	22	%	21	%		$	816,023		$	727,995	12	%	11	%
Leasing				266,282			249,647	7	%	6	%			798,119			744,649	7	%	7	%
Capital Markets				188,196			160,293	17	%	17	%			509,594			495,049	3	%	3	%
Outsourcing				280,454		$	267,338	5	%	5	%			820,369			773,590	6	%	6	%
Real Estate Services			$	734,932			677,278	9	%	8	%		$	2,128,082		$	2,013,288	6	%	6	%
Corporate				98			112	NM		NM				325			367	NM		NM
Total revenues			$	1,179,059		$	1,056,032	12	%	11	%		$	3,320,407		$	3,099,973	7	%	7	%
(1) Investment Management local currency revenues, excluding pass-through performance fees (carried interest), were up 1% and 3% for the three and nine-month periods ended September 30, 2024, respectively.

Third quarter consolidated revenues were up 11% on a local currency basis driven by robust growth across all service lines, particularly Engineering and Capital Markets. Consolidated internal revenue growth measured in local currencies was 5% (note 4) versus the prior year quarter.

For the nine months ended September 30, 2024, consolidated revenues increased 7% on a local currency basis, led by Engineering. Consolidated internal revenues measured in local currencies were up 4% (note 4).

Segmented Third Quarter ResultsReal Estate Services revenues totalled $734.9 million, up 9% (8% in local currency) versus $677.3 million in the prior year quarter on growth across all services lines, as expected. Capital Markets transaction volumes were up meaningfully against a low base in the prior year, particularly in the Americas and Asia Pacific. Leasing continued to build on last quarter’s momentum, notably in EMEA and the US with several large office leasing transactions during the quarter. Adjusted EBITDA was $64.7 million, up 8% (7% in local currency) compared to $59.7 million in the prior year quarter, with continued aggressive investment in recruiting in strategic markets. The GAAP operating earnings were $42.4 million, relative to $40.8 million in the prior year quarter.

Engineering revenues totalled $316.6 million, up 22% (21% in local currency) compared to $259.9 million in the prior year quarter. Revenue growth was primarily driven by the recent acquisition of Englobe. Adjusted EBITDA was $39.8 million, up 23% (24% in local currency) compared to $32.3 million in the prior year quarter. The GAAP operating earnings were $19.7 million relative to $20.0 million in the prior year quarter and were primarily impacted by higher intangible asset amortization expense related to recent acquisitions.

Investment Management revenues were $127.4 million, relative to $118.7 million in the prior year quarter, up 7% (7% in local currency) including historical pass-through performance fees of $7.8 million relative to $0.6 million in the prior year quarter. Excluding performance fees, revenue was up 1% (1% in local currency) driven by new investor capital commitments, which were lower than expected – a trend anticipated to continue through year-end. Adjusted EBITDA was $56.0 million, up 1% (1% in local currency) compared to the prior year quarter with continued investments in new products and strategies as well as additional investments to scale fundraising efforts. The GAAP operating earnings were $67.2 million in the quarter versus $20.4 million in the prior year quarter, with the variance largely attributable to the reversal of contingent consideration expense related to a fundraising condition in a recent acquisition. AUM was up $2.4 billion during the quarter to $98.8 billion from $96.4 billion as of June 30, 2024.

Unallocated global corporate costs as reported in Adjusted EBITDA were $5.9 million in the third quarter relative to $2.3 million in the prior year quarter, primarily from additional claim reserves taken in the Company’s captive insurance operation. The corporate GAAP operating loss for the quarter was $19.6 million compared to $10.3 million in the prior year quarter.

Outlook for 2024The Company has revised its 2024 outlook to reflect year-to-date results and updated fundraising expectations in its high-margin Investment Management segment for the remainder of the year.

			2024 Outlook
Measure	Actual 2023		Prior	Revised
Revenue growth	-3%		+8% to +13%	+8% to +13%
Adjusted EBITDA growth	-6%		+8% to +18%	+8% to +12%
Adjusted EPS growth	-23%		+11% to +21%	+6% to +12%

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.

Conference CallColliers will be holding a conference call on Tuesday, November 5, 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 identified in the Company’s other periodic filings with Canadian and US securities regulators 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								Nine months ended
		September 30								September 30
(in thousands of US$)		2024				2023				2024				2023
Net earnings		$	69,377			$	29,376			$	155,440			$	63,470
Income tax			21,131				18,096				55,478				38,112
Other income, including equity earnings from non-consolidated investments			(4,121	)			(801	)			(5,704	)			(5,007	)
Interest expense, net			23,350				24,228				62,598				71,730
Operating earnings			109,737				70,899				267,812				168,305
Loss on disposal of operations			-				-				-				2,282
Depreciation and amortization			56,073				51,163				156,426				151,449
Gains attributable to MSRs			(6,151	)			(3,199	)			(11,178	)			(12,286	)
Equity earnings from non-consolidated investments			4,008				685				5,240				4,371
Acquisition-related items			(20,931	)			15,366				(34,212	)			53,502
Restructuring costs			5,087				4,485				13,920				12,266
Stock-based compensation expense			6,813				5,513				20,947				16,726
Adjusted EBITDA		$	154,636			$	144,912			$	418,955			$	396,615

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								Nine months ended
		September 30								September 30
(in thousands of US$)		2024				2023				2024				2023
Net earnings		$	69,377			$	29,376			$	155,440			$	63,470
Non-controlling interest share of earnings			(14,929	)			(14,210	)			(35,074	)			(38,967	)
Interest on Convertible Notes			-				-				-				2,861
Loss on disposal of operations			-				-				-				2,282
Amortization of intangible assets			38,226				37,486				107,697				111,659
Gains attributable to MSRs			(6,151	)			(3,199	)			(11,178	)			(12,286	)
Acquisition-related items			(20,931	)			15,366				(34,212	)			53,502
Restructuring costs			5,087				4,485				13,920				12,266
Stock-based compensation expense			6,813				5,513				20,947				16,726
Income tax on adjustments			(5,383	)			(11,853	)			(26,116	)			(35,046	)
Non-controlling interest on adjustments			(5,060	)			(6,207	)			(18,331	)			(17,133	)
Adjusted net earnings		$	67,049			$	56,757			$	173,093			$	159,334
		Three months ended								Nine months ended
		September 30								September 30
(in US$)		2024				2023				2024				2023
Diluted net earnings (loss) per common share(1)		$	0.73			$	0.53			$	1.73			$	(0.04	)
Interest on Convertible Notes, net of tax			-				-				-				0.04
Non-controlling interest redemption increment			0.34				(0.21	)			0.68				0.56
Loss on disposal of operations			-				-				-				0.05
Amortization expense, net of tax			0.59				0.49				1.48				1.45
Gains attributable to MSRs, net of tax			(0.07	)			(0.04	)			(0.13	)			(0.15	)
Acquisition-related items			(0.45	)			0.26				(0.84	)			0.97
Restructuring costs, net of tax			0.08				0.07				0.21				0.19
Stock-based compensation expense, net of tax			0.10				0.09				0.33				0.29
Adjusted EPS		$	1.32			$	1.19			$	3.46			$	3.36
Diluted weighted average shares for Adjusted EPS (thousands)			50,797				47,549				50,054				47,480
(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								Nine months ended
		September 30								September 30
(in thousands of US$)		2024				2023				2024				2023
Net cash provided by operating activities		$	107,128			$	42,153			$	110,702			$	8,558
Contingent acquisition consideration paid			69				35,655				3,107				38,646
Purchase of fixed assets			(16,158	)			(19,349	)			(45,511	)			(60,411	)
Cash collections on AR Facility deferred purchase price			32,957				31,896				101,805				91,207
Distributions paid to non-controlling interests			(17,475	)			(16,702	)			(66,302	)			(67,822	)
Free cash flow		$	106,521			$	73,653			$	103,801			$	10,178

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 Engineering, Outsourcing and Investment Management service lines. All 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								Nine months
			ended September 30								ended September 30
(unaudited)			2024				2023				2024				2023
Revenues		$	1,179,059			$	1,056,032			$	3,320,407			$	3,099,973
Cost of revenues			712,044				638,659				2,005,351				1,865,569
Selling, general and administrative expenses			322,136				279,945				925,030				858,866
Depreciation			17,847				13,677				48,729				39,790
Amortization of intangible assets			38,226				37,486				107,697				111,659
Acquisition-related items (1)			(20,931	)			15,366				(34,212	)			53,502
Loss on disposal of operations			-				-				-				2,282
Operating earnings			109,737				70,899				267,812				168,305
Interest expense, net			23,350				24,228				62,598				71,730
Equity earnings from non-consolidated investments			(4,008	)			(685	)			(5,240	)			(4,371	)
Other income			(113	)			(116	)			(464	)			(636	)
Earnings before income tax			90,508				47,472				210,918				101,582
Income tax			21,131				18,096				55,478				38,112
Net earnings			69,377				29,376				155,440				63,470
Non-controlling interest share of earnings			14,929				14,210				35,074				38,967
Non-controlling interest redemption increment			17,221				(9,947	)			33,758				26,393
Net earnings (loss) attributable to Company		$	37,227			$	25,113			$	86,608			$	(1,890	)
Net earnings (loss) per common share
Basic		$	0.74			$	0.53			$	1.74			$	(0.04	)
Diluted (2)		$	0.73			$	0.53			$	1.73			$	(0.04	)
Adjusted EPS (3)		$	1.32			$	1.19			$	3.46			$	3.36
Weighted average common shares (thousands)
Basic			50,320				47,206				49,692				45,122
Diluted			50,797				47,549				50,054				45,504

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 September 30, 2023 and anti-dilutive for the nine months ended September 30, 2023.(3)   See definition and reconciliation above.

Colliers International Group Inc.
Condensed Consolidated Balance Sheets
(in thousands of US$)
		September 30,			December 31,			September 30,
(unaudited)		2024			2023			2023
Assets
Cash and cash equivalents		$	156,984		$	181,134		$	168,600
Restricted cash (1)			88,274			37,941			69,991
Accounts receivable and contract assets			884,984			726,764			688,306
Mortgage warehouse receivables (2)			135,915			177,104			54,957
Prepaids and other assets			355,575			306,829			294,631
Warehouse fund assets			108,781			44,492			42,081
	Current assets		1,730,513			1,474,264			1,318,566
Other non-current assets			219,950			188,745			196,669
Warehouse fund assets			52,564			47,536			-
Fixed assets			230,434			202,837			186,346
Operating lease right-of-use assets			394,478			390,565			361,408
Deferred tax assets, net			69,816			59,468			62,781
Goodwill and intangible assets			3,541,615			3,118,711			3,114,120
	Total assets	$	6,239,370		$	5,482,126		$	5,239,890
Liabilities and shareholders' equity
Accounts payable and accrued liabilities		$	1,072,472		$	1,104,935		$	1,009,426
Other current liabilities			112,411			75,764			88,221
Long-term debt - current			15,683			1,796			3,976
Mortgage warehouse credit facilities (2)			128,944			168,780			48,309
Operating lease liabilities - current			92,699			89,938			88,568
Liabilities related to warehouse fund assets			57,554			-			-
	Current liabilities		1,479,763			1,441,213			1,238,500
Long-term debt - non-current			1,788,686			1,500,843			1,638,650
Operating lease liabilities - non-current			379,457			375,454			343,790
Other liabilities			131,378			151,333			151,650
Deferred tax liabilities, net			82,440			43,191			40,334
Liabilities related to warehouse fund assets			-			47,536			-
Redeemable non-controlling interests			1,122,084			1,072,066			1,073,379
Shareholders' equity			1,255,562			850,490			753,587
	Total liabilities and equity	$	6,239,370		$	5,482,126		$	5,239,890
Supplemental balance sheet information
Total debt (3)		$	1,804,369		$	1,502,639		$	1,642,626
Total debt, net of cash and cash equivalents (3)			1,647,385			1,321,505			1,474,026
Net debt / pro forma adjusted EBITDA ratio (4)			2.5			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								Nine months ended
				September 30								September 30
(unaudited)				2024				2023				2024				2023
Cash provided by (used in)
Operating activities
Net earnings			$	69,377			$	29,376			$	155,440			$	63,470
Items not affecting cash:
	Depreciation and amortization			56,073				51,163				156,426				151,449
	Loss on disposal of operations			-				-				-				2,282
	Gains attributable to mortgage servicing rights			(6,151	)			(3,199	)			(11,178	)			(12,286	)
	Gains attributable to the fair value of loan premiums and origination fees			(3,601	)			(2,887	)			(9,224	)			(10,913	)
	Deferred income tax			(6,528	)			1,458				(13,923	)			(20,446	)
	Other			(14,672	)			28,555				476				95,076
				94,498				104,466				278,017				268,632
Increase in accounts receivable, prepaid
	expenses and other assets			(69,942	)			(76,551	)			(164,231	)			(133,276	)
Increase (decrease) in accounts payable, accrued
	expenses and other liabilities			41,027				(6,539	)			38,125				(6,082	)
Increase (decrease) in accrued compensation				38,569				28,442				(48,449	)			(125,188	)
Contingent acquisition consideration paid				(69	)			(35,655	)			(3,107	)			(38,646	)
Mortgage origination activities, net				3,591				4,964				10,783				14,034
Sales to AR Facility, net				(546	)			23,026				(436	)			29,084
Net cash provided by operating activities				107,128				42,153				110,702				8,558
Investing activities
Acquisition of businesses, net of cash acquired				(454,638	)			(1,597	)			(472,410	)			(61,295	)
Purchases of fixed assets				(16,158	)			(19,349	)			(45,511	)			(60,411	)
Purchases of warehouse fund assets				(15,676	)			(8,989	)			(273,019	)			(49,565	)
Proceeds from disposal of warehouse fund assets				-				6,369				76,438				50,369
Cash collections on AR Facility deferred purchase price				32,957				31,896				101,805				91,207
Other investing activities				(43,518	)			(18,253	)			(101,651	)			(47,796	)
Net cash used in investing activities				(497,033	)			(9,923	)			(714,348	)			(77,491	)
Financing activities
Increase (decrease) in long-term debt, net				418,207				(9,843	)			419,683				209,825
Purchases of non-controlling interests, net				(8,052	)			(8,256	)			(17,789	)			(24,589	)
Dividends paid to common shareholders				(7,542	)			(7,077	)			(14,674	)			(13,517	)
Distributions paid to non-controlling interests				(17,475	)			(16,702	)			(66,302	)			(67,822	)
Issuance of subordinate voting shares				-				-				286,924				-
Other financing activities				11,003				(5,892	)			28,096				7,745
Net cash provided by (used in) financing activities				396,141				(47,770	)			635,938				111,642
Effect of exchange rate changes on cash,
	cash equivalents and restricted cash			(1,663	)			(3,447	)			(6,109	)			(3,160	)
Net change in cash and cash
	equivalents and restricted cash			4,573				(18,987	)			26,183				39,549
Cash and cash equivalents and
	restricted cash, beginning of period			240,685				257,578				219,075				199,042
Cash and cash equivalents and
	restricted cash, end of period		$	245,258			$	238,591			$	245,258			$	238,591

 

Colliers International Group Inc.
Segmented Results
(in thousands of US dollars)
		Real Estate						Investment
(unaudited)		Services			Engineering			Management			Corporate				Consolidated
Three months ended September 30
2024
	Revenues	$	734,932		$	316,624		$	127,405		$	98			$	1,179,059
	Adjusted EBITDA		64,744			39,820			55,962			(5,890	)			154,636
	Operating earnings (loss)		42,399			19,700			67,217			(19,579	)			109,737
2023
	Revenues	$	677,278		$	259,925		$	118,717		$	112			$	1,056,032
	Adjusted EBITDA		59,735			32,263			55,164			(2,250	)			144,912
	Operating earnings (loss)		40,814			20,017			20,388			(10,320	)			70,899
		Real Estate						Investment
		Services			Engineering			Management			Corporate				Consolidated
Nine months ended September 30
2024
	Revenues	$	2,128,082		$	816,023		$	375,977		$	325			$	3,320,407
	Adjusted EBITDA		197,236			71,814			159,301			(9,396	)			418,955
	Operating earnings (loss)		123,508			32,614			161,129			(49,439	)			267,812
2023
	Revenues	$	2,013,288		$	727,995		$	358,323		$	367			$	3,099,973
	Adjusted EBITDA		169,988			71,596			160,100			(5,069	)			396,615
	Operating earnings (loss)		91,991			42,667			61,599			(27,952	)			168,305

COMPANY CONTACTS:Jay S. HennickChairman & Chief Executive Officer

Chris McLernonChief Executive Officer, Real Estate Services 

Christian MayerChief Financial Officer(416) 960-9500