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P R E S S R E L E A S E
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Exhibit 99.1 Corporate Headquarters 355 South Grand Avenue Suite 3100 Los Angeles, CA 90071 United States T 213.613.3333 F 213.613.3005 www.cbre.com |
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FOR IMMEDIATE RELEASE ¾ May 14, 2003
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For further information: Kenneth Kay Chief Financial Officer CB Richard Ellis 213.613.3420
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Ronald Platisha Executive Vice President-Finance CB Richard Ellis 310.354.6044
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CBRE Holding, Inc. Reports Improved First Quarter 2003 Results
Los Angeles, CA (May 14, 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 months ended March 31, 2003.
Revenue totaled $263.7 million for the first quarter ended March 31, 2003 as compared to $224.0 million for the first quarter ended March 31, 2002. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the first quarter totaled $17.0 million, a $6.5 million or 61.9% increase from last year’s same period results.
On May 15, 2003, at 7:00 a.m. Pacific time, the Company will hold a conference call with its bondholders to discuss its results for the quarter ended March 31, 2003. To access the call, dial 800-553-0288, access code 684878 (outside the United States, please call 612-333-4911). A transcript of the call will be available at www.cbre.com for review for twelve months 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 $1.17 billion in 2002. For more information about CB Richard Ellis, visit the Company’s website at www.cbre.com.
CBRE HOLDING, INC.
OPERATING RESULTS
FOR THE THREE MONTHS ENDED MARCH 31, 2003 AND 2002
(Dollars in thousands)
(Unaudited)
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Three Months Ended March 31, |
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2003 |
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2002 |
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Revenue from real estate services |
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$ |
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$ |
223,990 |
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Costs and expenses: |
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Cost of services |
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123,599 |
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99,054 |
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Operating, administrative and other |
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126,175 |
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115,853 |
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Depreciation and amortization |
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6,171 |
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7,592 |
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Equity income from unconsolidated subsidiaries |
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(3,063 |
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(2,005 |
) |
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Merger-related and other nonrecurring charges |
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- |
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582 |
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Total costs and expenses |
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252,882 |
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221,076 |
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Operating income |
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10,842 |
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2,914 |
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Interest income |
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1,075 |
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864 |
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Interest expense |
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14,324 |
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16,017 |
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Loss before benefit for income tax |
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(2,407 |
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(12,239 |
) |
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Benefit for income tax |
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(1,060 |
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(6,144 |
) |
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Net loss |
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$ |
(1,347 |
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(6,095 |
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EBITDA |
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$ |
17,013 |
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10,506 |
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EBITDA margin |
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6.5 |
% |
4.7 |
% |
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EBITDA is calculated as follows:
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Three Months Ended March 31, |
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2003 |
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2002 |
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Operating income |
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$ |
10,842 |
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$ |
2,914 |
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Add: |
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Depreciation and amortization |
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6,171 |
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7,592 |
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EBITDA |
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$ |
17,013 |
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$ |
10,506 |
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EBITDA represents earnings before net interest expense, income taxes, depreciation and amortization of intangible assets relating to acquisitions. Management believes that the presentation of EBITDA will enhance a reader’s understanding of the Company’s operating performance. EBITDA is also a measure used by senior management to evaluate the performance of the Company’s various lines of business and for other required or discretionary purposes, such as the use of EBITDA as a significant component when measuring performance under the Company’s employee incentive programs. Additionally, many of the Company’s debt covenants are based upon a measure similar to EBITDA. EBITDA should not be considered as an alternative to (i) operating income determined in accordance with accounting principles generally accepted in the United States or (ii) operating cash flow determined in accordance with accounting principles generally accepted in the United States. The Company’s calculation of EBITDA may not be comparable to similarly titled measures reported by other companies.
CB RICHARD ELLIS SERVICES, INC (1)
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)
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March 31, 2003 |
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December 31, 2002 |
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Assets: |
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Cash and cash equivalents |
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$ |
19,288 |
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$ |
79,574 |
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Warehouse receivable(2) |
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11,625 |
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63,140 |
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Other current assets |
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207,107 |
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223,351 |
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Property and equipment, net |
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66,706 |
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66,634 |
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Goodwill and other intangible assets, net |
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667,382 |
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668,219 |
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Deferred taxes, non current |
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36,297 |
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36,376 |
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Deferred compensation assets |
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63,396 |
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63,642 |
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Other assets |
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134,346 |
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139,169 |
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Total assets |
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$ |
1,206,147 |
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$ |
1,340,105 |
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Liabilities: |
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Current liabilities, excluding debt |
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$ |
211,563 |
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$ |
288,891 |
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Warehouse line of credit(2) |
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11,625 |
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63,140 |
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Revolver and swingline credit facility |
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13,500 |
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- |
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Senior secured term loan tranche A |
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36,875 |
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38,750 |
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Senior secured term loan tranche B |
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181,762 |
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182,225 |
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111/4% senior subordinated notes |
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225,998 |
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225,943 |
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Other debt(3) |
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61,733 |
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60,988 |
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Deferred compensation liability |
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106,549 |
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106,252 |
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Other long-term liabilities |
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45,048 |
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43,301 |
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Total liabilities |
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894,653 |
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1,009,490 |
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Minority Interest |
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5,727 |
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5,615 |
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Stockholders' equity |
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243,168 |
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263,137 |
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Mezzanine notes |
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62,599 |
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61,863 |
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Total stockholders' equity |
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305,767 |
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325,000 |
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Total liabilities and stockholders' equity |
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$ |
1,206,147 |
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$ |
1,340,105 |
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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 $11.6 million and $63.1 million at March 31, 2003 and December 31, 2002, respectively.
(3) Includes non-recourse debt relating to a building investment in Japan of $39.4 million and $40.0 million at March 31, 2003 and December 31, 2002, respectively.