EXHIBIT 99.1
(LETTERHEAD OF CBRE HOLDING, INC.)
FOR IMMEDIATE RELEASE — May 14, 2002
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For further information: |
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James Leonetti, Chief Financial Officer |
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Ronald Platisha, Executive Vice President, Finance |
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CB Richard Ellis |
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CB Richard Ellis |
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213.613.3770 |
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310.354.6044 |
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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)
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Three Months Ended March 31, |
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2002 |
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2001 |
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Revenue: |
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Leases |
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$ |
72,499 |
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$ |
103,166 |
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Sales |
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61,006 |
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73,843 |
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Property and facilities management fees |
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27,405 |
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27,872 |
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Consulting and referral fees |
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17,548 |
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16,367 |
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Appraisal fees |
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16,124 |
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18,836 |
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Loan origination and servicing fees |
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12,730 |
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14,812 |
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Investment management fees |
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11,675 |
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8,549 |
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Other |
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5,003 |
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9,053 |
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Total revenue |
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223,990 |
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272,498 |
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Costs and expenses: |
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Commissions, fees and other incentives |
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100,266 |
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122,966 |
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Operating, administrative and other |
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112,636 |
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135,511 |
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Depreciation and amortization |
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7,592 |
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11,696 |
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Merger-related and other nonrecurring charges |
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582 |
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— |
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Total costs and expenses |
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221,076 |
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270,173 |
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Operating income |
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2,914 |
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2,325 |
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Interest income |
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864 |
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800 |
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Interest expense |
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16,017 |
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9,055 |
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Loss before benefit for income tax |
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(12,239 |
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(5,930 |
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Benefit for income tax |
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(6,144 |
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(3,084 |
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Net loss |
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$ |
(6,095 |
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$ |
(2,846 |
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EBITDA |
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$ |
11,088 |
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$ |
14,021 |
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EBITDA margin |
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5.0 |
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5.1 |
% |
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CB RICHARD ELLIS SERVICES, INC.( 1)
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
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March 31, 2002 |
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December 31, 2001 |
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Assets: |
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Cash and cash equivalents |
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$ |
19,985 |
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$ |
57,477 |
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Warehouse receivable (2) |
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31,569 |
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106,790 |
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Other current assets |
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198,556 |
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215,651 |
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Property and equipment, net |
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65,814 |
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68,451 |
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Goodwill and other intangible assets, net |
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647,518 |
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647,660 |
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Deferred taxes, non current |
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52,630 |
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54,002 |
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Cash surrender value of insurance policies, deferred compensation plan |
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71,249 |
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69,385 |
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Other assets |
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144,477 |
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142,888 |
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Total assets |
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$ |
1,231,798 |
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$ |
1,362,304 |
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Liabilities: |
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Current liabilities, excluding debt |
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$ |
174,439 |
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$ |
258,271 |
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Warehouse line of credit(2) |
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31,569 |
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106,790 |
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Revolver and swingline credit facility |
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37,500 |
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— |
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Senior secured term loan tranche A |
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44,375 |
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46,250 |
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Senior secured term loan tranche B |
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183,612 |
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184,075 |
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111/4% senior subordinated notes |
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225,786 |
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225,737 |
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Other debt(3) |
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61,566 |
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65,396 |
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Deferred compensation liability |
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106,929 |
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105,104 |
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Other long-term liabilities |
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46,830 |
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46,661 |
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Total liabilities |
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912,606 |
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1,038,284 |
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Minority Interest |
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4,436 |
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4,296 |
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Stockholders’ Equity |
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314,756 |
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319,724 |
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Total liabilities and stockholders’ equity |
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$ |
1,231,798 |
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$ |
1,362,304 |
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(1) |
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CB Richard Ellis Services, Inc. is a wholly owned subsidiary of CBRE Holding, Inc. |
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(2) |
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March 31, 2002 includes $31.6 million of Freddie MAC loan receivables and related non-recourse warehouse line of credit. |
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(3) |
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Includes $36.8 million at March 31, 2002 and $37.2 million at December 31, 2001, of non-recourse debt relating to a building investment in Japan. |
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CB RICHARD ELLIS SERVICES, INC.
DEBT AND EQUITY
(Dollars in thousands)
(Unaudited)
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March 31, 2002 |
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December 31, 2001 |
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Revolver and swingline credit facility |
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$ |
37,500 |
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$ |
— |
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Senior secured term loan tranche A (1) |
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44,375 |
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46,250 |
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Senior secured term loan tranche B (1) |
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183,612 |
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184,075 |
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111/4% senior subordinated notes |
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225,786 |
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225,737 |
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Other debt |
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24,838 |
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28,217 |
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Total debt (2) |
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516,111 |
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484,279 |
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Cash |
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19,985 |
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57,447 |
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Net debt |
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496,126 |
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426,832 |
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Stockholders’ equity |
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255,044 |
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260,068 |
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Mezzanine debt |
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59,712 |
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59,656 |
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Total stockholders’ equity |
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314,756 |
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319,724 |
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Total net debt and equity |
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$ |
810,882 |
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$ |
746,556 |
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(1) |
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Includes the current portion of these loans. |
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(2) |
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Includes at March 2002 debt for CB Richard Ellis Services, Inc. and excludes the warehouse line of credit and certain non recourse debt. |
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