Exhibit 99.1
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PRESS RELEASE |
Corporate Headquarters |
FOR IMMEDIATE RELEASE ¾ February 20, 2003
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For further information: Kenneth Kay Senior Executive Vice President and Chief Financial Officer CB Richard Ellis 213.613.3420 |
Ronald Platisha Executive Vice President-Finance CB Richard Ellis 310.354.6044 |
CBRE Holding, Inc. Reports Fourth Quarter and Full Year 2002 Results
Los Angeles, CA (February 20, 2003) — CBRE Holding, Inc., parent corporation of CB Richard Ellis Services, Inc., one of the world’s leading real estate services companies, today reported its results for the three and twelve months ended December 31, 2002.
Revenue totaled $376.5 million for the fourth quarter ended December 31, 2002, as compared to $337.3 million for the fourth quarter ended December 31, 2001. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the fourth quarter totaled $58.7 million, a $2.1 million or 3.8% increase from last year’s same period results.
Revenue for the twelve months ended December 31, 2002 was comparable to the prior year at $1.17 billion. EBITDA for the twelve months ended December 31, 2002 was $130.7 million, a $15.7 million or 13.7% increase from the prior year.
On February 20, 2003, at 12:30 p.m. Pacific time, the Company will hold a conference call with its bondholders to discuss its results for the quarter ended December 31, 2002. To access the call, dial 888-273-9889, and request CB Richard Ellis Fourth Quarter 2002 Earnings (outside the United States, please call 612-332-0228). A transcript of the call will be available at www.cbre.com for review for seven working days after the call.
Headquartered in Los Angeles, CBRE Holding, Inc. is one of the world’s leading real estate services companies. With approximately 9,500 employees, the Company serves real estate owners, investors and occupiers throughout approximately 250 owned and affiliated offices in 47 countries. The Company’s core services portfolio includes property sales, leasing and management, corporate services, facilities and project management, mortgage banking, investment management, capital markets, appraisal and valuation, research and consulting. The Company reported net revenues of $1.17 billion in 2002. For more information about CB Richard Ellis, visit the Company's website at www.cbre.com.
This release contains forward-looking statements concerning expectations for future revenues, cost reductions and earnings performance. These statements reflect the company’s current plans and expectations and are based on information currently available to it. They rely on a number of assumptions and estimates, which could prove to be inaccurate, and which are subject to risks and uncertainties that could cause the Company’s actual results to vary materially from the results anticipated. CB Richard Ellis undertakes no obligation to update publicly or revise any forward-looking statements. These statements are qualified by reference to the Company’s 2001 Annual Report and Form 10-K and its quarterly reports on Form 10-Q.
CBRE HOLDING, INC.
OPERATING RESULTS
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2002 AND 2001
(Dollars in thousands)
(Unaudited)
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Three Months Ended December 31, |
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Twelve Months Ended December 31, |
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2002 |
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2001 |
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2002 |
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2001 |
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Revenue from real estate services |
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$ |
376,466 |
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$ |
337,262 |
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$ |
1,170,277 |
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$ |
1,170,762 |
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Costs and expenses: |
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Commissions, fees and other incentives |
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186,405 |
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157,669 |
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554,942 |
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547,577 |
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Operating, administrative and other |
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134,303 |
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123,726 |
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493,949 |
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512,632 |
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Depreciation and amortization |
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6,507 |
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6,410 |
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24,614 |
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37,854 |
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Equity income from unconsolidated subsidiaries |
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(2,903 |
) |
(658 |
) |
(9,326 |
) |
(4,428 |
) |
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Merger-related and other nonrecurring charges |
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(14 |
) |
3,166 |
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36 |
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28,569 |
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Total costs and expenses |
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324,298 |
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290,313 |
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1,064,215 |
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1,122,204 |
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Operating income |
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52,168 |
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46,949 |
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106,062 |
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48,558 |
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Interest income |
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599 |
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674 |
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3,272 |
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3,994 |
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Interest expense |
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14,160 |
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14,535 |
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60,501 |
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50,020 |
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Income before provision for income taxes |
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38,607 |
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33,088 |
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48,833 |
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2,532 |
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Provision for income taxes |
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23,510 |
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16,910 |
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30,106 |
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19,126 |
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Net income (loss) |
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$ |
15,097 |
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$ |
16,178 |
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$ |
18,727 |
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$ |
(16,594 |
) |
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EBITDA excluding merger-related and other nonrecurring charges |
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$ |
58,661 |
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$ |
56,525 |
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$ |
130,712 |
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$ |
114,981 |
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EBITDA margin excluding merger-related and other nonrecurring charges |
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15.6 |
% |
16.8 |
% |
11.2 |
% |
9.8 |
% |
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2
CB RICHARD ELLIS SERVICES, INC(1)
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)
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December 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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$ |
79,574 |
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$ |
57,447 |
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Warehouse receivable(2) |
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63,140 |
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106,790 |
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Other current assets |
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223,351 |
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215,681 |
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Property and equipment, net |
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66,634 |
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68,451 |
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Goodwill and other intangible assets, net |
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668,219 |
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647,660 |
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Deferred taxes, non current |
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36,376 |
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54,002 |
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Cash surrender value of insurance policies, deferred compensation plan |
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63,642 |
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69,385 |
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Other assets |
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139,169 |
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140,101 |
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Total assets |
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$ |
1,340,105 |
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$ |
1,359,517 |
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Liabilities: |
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Current liabilities, excluding debt |
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$ |
288,891 |
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$ |
258,271 |
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Warehouse line of credit(2) |
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63,140 |
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106,790 |
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Senior secured term loan tranche A |
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38,750 |
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46,250 |
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Senior secured term loan tranche B |
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182,225 |
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184,075 |
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111/4% senior subordinated notes |
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225,943 |
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225,737 |
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Other debt(3) |
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60,988 |
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65,396 |
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Deferred compensation liability |
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106,252 |
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105,104 |
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Other long-term liabilities |
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43,301 |
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46,661 |
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Total liabilities |
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1,009,490 |
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1,038,284 |
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Minority Interest |
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5,615 |
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4,296 |
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Stockholders' equity |
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263,137 |
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257,281 |
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Mezzanine notes |
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61,863 |
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59,656 |
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Total stockholders' equity |
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325,000 |
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316,937 |
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Total liabilities and stockholders' equity |
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$ |
1,340,105 |
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$ |
1,359,517 |
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(1) CB Richard Ellis Services, Inc. is a wholly owned subsidiary of CBRE Holding, Inc.
(2) Includes Freddie MAC loan receivables and related non-recourse warehouse line of credit of $63.1 million and $106.8 million at December 31, 2002 and 2001, respectively.
(3) Includes non-recourse debt relating to a building investment in Japan of $40.0 million and $37.2 million at December 31, 2002 and 2001, respectively.
3