EXHIBIT 99.1

 

 

(LETTERHEAD OF CBRE HOLDING, INC.)

 

FOR IMMEDIATE RELEASE — May 14, 2002

 

 

For further information:

 

 

James Leonetti, Chief Financial Officer

 

Ronald Platisha, Executive Vice President, Finance

CB Richard Ellis

 

CB Richard Ellis

213.613.3770

 

310.354.6044

 

 

 

 

CBRE Holding, Inc. Reports 2002 First Quarter Results

 

Los Angeles, CA (May 14, 2002). CBRE Holding, Inc., parent corporation of CB Richard Ellis Services, Inc., one of the world’s largest providers of real estate services, today reported its results for quarter ended March 31, 2002.

 

Revenue totaled $224.0 million for the quarter ended March 31, 2002, which represents an 18% decline from revenue generated in the same quarter last year.  Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the quarter totaled $11.1 million, a 21% decrease from last year’s results. During the first quarter of 2001, the Company recorded a $5.4 million net gain from the sale of a mortgage fund.  Excluding this one-time gain, EBITDA increased by $2.5 million or 29.1% during the first quarter of 2002 as compared to 2001.

 

On May 15, 2002, at 8:30 a.m. Pacific time, the Company will hold a conference call with its bondholders and discuss its results for the quarter ended March 2002.  To access the call, dial 800-611-1147, and request CB Richard Ellis 1st Quarter 2002 Earnings (outside the United States, please call 612-332-0632). Transcript of the call will be available on www.cbre.com for review within seven working days of the call.

 

CBRE Holding, Inc. operates its business primarily through its wholly owned subsidiary CB Richard Ellis Services, Inc., one of the world’s leading real estate services company. Headquartered in Los Angeles with 9700 employees worldwide, the company serves real estate owners, investors and occupiers through 221 offices in 47 countries. Services include property sales and leasing, property management, corporate services and facilities management, mortgage banking, investment management, capital markets, appraisal/valuation, research and consulting. For more information about CB Richard Ellis, visit the company’s website at www.cbre.com.

 

This release contains forward-looking statements concerning expectations for future revenues, cost reductions and earnings performance.  These statements reflect the company’s current plans and expectations and are based on information currently available to it.  They rely on a number of assumptions and estimates, which could prove to be inaccurate, and which are subject to risks and uncertainties that could cause the Company’s actual results to vary materially from the results anticipated.  CB Richard Ellis undertakes no obligation to update publicly or revise any forward-looking statements.  These statements are qualified by reference to the Company’s 2001 Annual Report and Form 10-K and its quarterly reports on Form 10-Q.

 



 

CBRE HOLDING, INC.

OPERATING RESULTS

FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001

(Dollars in thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

 

2002

 

2001

 

Revenue:

 

 

 

 

 

Leases

 

$

72,499

 

$

103,166

 

Sales

 

61,006

 

73,843

 

Property and facilities management fees

 

27,405

 

27,872

 

Consulting and referral fees

 

17,548

 

16,367

 

Appraisal fees

 

16,124

 

18,836

 

Loan origination and servicing fees

 

12,730

 

14,812

 

Investment management fees

 

11,675

 

8,549

 

Other

 

5,003

 

9,053

 

Total revenue

 

223,990

 

272,498

 

Costs and expenses:

 

 

 

 

 

Commissions, fees and other incentives

 

100,266

 

122,966

 

Operating, administrative and other

 

112,636

 

135,511

 

Depreciation and amortization

 

7,592

 

11,696

 

Merger-related and other nonrecurring charges

 

582

 

 

Total costs and expenses

 

221,076

 

270,173

 

Operating income

 

2,914

 

2,325

 

Interest income

 

864

 

800

 

Interest expense

 

16,017

 

9,055

 

 

 

 

 

 

 

Loss before benefit for income tax

 

(12,239

)

(5,930

)

Benefit for income tax

 

(6,144

)

(3,084

)

Net loss

 

$

(6,095

)

$

(2,846

)

 

 

 

 

 

 

EBITDA

 

$

11,088

 

$

14,021

 

 

 

 

 

 

 

EBITDA margin

 

5.0

%

5.1

%

 

 

 

 

 

 

 

 

2



 

 

CB RICHARD ELLIS SERVICES, INC.( 1)

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Dollars in thousands)

 

 

 

March 31, 2002

 

December 31, 2001

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

19,985

 

$

57,477

 

Warehouse receivable (2)

 

31,569

 

106,790

 

Other current assets

 

198,556

 

215,651

 

Property and equipment, net

 

65,814

 

68,451

 

Goodwill and other intangible assets, net

 

647,518

 

647,660

 

Deferred taxes, non current

 

52,630

 

54,002

 

Cash surrender value of insurance policies, deferred compensation plan

 

71,249

 

69,385

 

Other assets

 

144,477

 

142,888

 

Total assets

 

$

1,231,798

 

$

1,362,304

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

Current liabilities, excluding debt

 

$

174,439

 

$

258,271

 

Warehouse line of credit(2)

 

31,569

 

106,790

 

Revolver and swingline credit facility

 

37,500

 

 

Senior secured term loan tranche A

 

44,375

 

46,250

 

Senior secured term loan tranche B

 

183,612

 

184,075

 

111/4% senior subordinated notes

 

225,786

 

225,737

 

Other debt(3)

 

61,566

 

65,396

 

Deferred compensation liability

 

106,929

 

105,104

 

Other long-term liabilities

 

46,830

 

46,661

 

Total liabilities

 

912,606

 

1,038,284

 

 

 

 

 

 

 

Minority Interest

 

4,436

 

4,296

 

 

 

 

 

 

 

Stockholders’ Equity

 

314,756

 

319,724

 

Total liabilities and stockholders’ equity

 

$

1,231,798

 

$

1,362,304

 

 

 

 

 

 

 


 

(1)

 

CB Richard Ellis Services, Inc. is a wholly owned subsidiary of CBRE Holding, Inc.

(2)

 

March 31, 2002 includes $31.6 million of Freddie MAC loan receivables and related non-recourse warehouse line of credit.

(3)

 

Includes $36.8 million at March 31, 2002 and $37.2 million at December 31, 2001, of non-recourse debt relating to a building investment in Japan.

 

2



 

CB RICHARD ELLIS SERVICES, INC.

DEBT AND EQUITY

(Dollars in thousands)

(Unaudited)

 

 

 

March 31, 2002

 

December 31, 2001

 

 

 

 

 

 

 

Revolver and swingline credit facility

 

$

37,500

 

$

 

Senior secured term loan tranche A (1)

 

44,375

 

46,250

 

Senior secured term loan tranche B (1)

 

183,612

 

184,075

 

111/4% senior subordinated notes

 

225,786

 

225,737

 

Other debt

 

24,838

 

28,217

 

Total debt (2)

 

516,111

 

484,279

 

Cash

 

19,985

 

57,447

 

Net debt

 

496,126

 

426,832

 

 

 

 

 

 

 

Stockholders’ equity

 

255,044

 

260,068

 

Mezzanine debt

 

59,712

 

59,656

 

Total stockholders’ equity

 

314,756

 

319,724

 

 

 

 

 

 

 

Total net debt and equity

 

$

810,882

 

$

746,556

 

 


 

(1)

 

Includes the current portion of these loans.

(2)

 

Includes at March 2002 debt for CB Richard Ellis Services, Inc. and excludes the warehouse line of credit and certain non recourse debt.

 

 

3