Exhibit 99.1
|
PRESS
RELEASE
|
Corporate Headquarters
100 N. Sepulveda Blvd.
Suite 1050
El Segundo, CA 90245
www.cbre.com
|
FOR
IMMEDIATE RELEASE
|
For
further information:
Kenneth Kay
Sr. Executive Vice President and
Chief Financial Officer
310.606.4706
|
Steve Iaco
Sr. Managing Director of
Corporate Communications
212.984.6535
|
Shelley Young
Director of
Investor Relations
212.984.8359
|
CB RICHARD ELLIS GROUP, INC. ANNOUNCES EARNINGS PER SHARE UP
60% FOR THIRD QUARTER OF 2006
Los Angeles, CA – October 25, 2006
— CB Richard Ellis Group, Inc. (NYSE:CBG)
today reported revenue for the third quarter ended September 30, 2006 of $903.9
million, up 21.5% over the third quarter of 2005, and diluted earnings per
share of $0.39 for the third quarter ended September 30, 2006, compared with
$0.25 for the same quarter last year. Excluding one-time charges(1), third quarter 2006 diluted earnings per share
was $0.40, an increase of 60.0% from the $0.25 earned in the third quarter of
2005.
Third Quarter Highlights
For the third quarter of 2006, the Company
generated revenue of $903.9 million, up 21.5% over the $744.2 million posted in
the third quarter of 2005. The Company reported net income of $92.3 million, or
$0.39 per diluted share, in the third quarter of 2006 compared with net income
of $56.9 million, or $0.25 per diluted share, in the third quarter of 2005.
Excluding one-time items, the Company would
have earned net income(2) of $94.5 million, or $0.40 per diluted
share, in the third quarter of 2006, an increase of 64.4% and 60.0%,
respectively, compared with net income of $57.5 million, or $0.25 per diluted
share, in the third quarter of 2005.
Earnings Before Interest, Taxes,
Depreciation, and Amortization (EBITDA)(3) totaled $163.5
million for the third quarter of 2006, an increase of $52.3 million, or 47.0%,
from the same quarter last year.
The Company’s third quarter results continue
to reflect strong performance across virtually all business lines and
geographies, as well as contributions from acquisitions. Of the 21.5% revenue
growth, approximately two-thirds was due to organic growth and one-third was
attributable to acquisitions completed in 2005 and 2006. The double-digit
organic
growth was fueled by notably improved leasing
activity in most major markets as well as increased revenue in the
appraisal/valuation, mortgage brokerage, property and facilities management and
investment management operations. This marks the 16th straight
quarter of double-digit year-over-year organic revenue growth.
Nine-Month Results
Revenue was $2.4 billion for
the nine months ended September 30, 2006, up $465.6 million, or 23.8%, compared
to the same period last year. Approximately two-thirds of the improvement was
due to organic growth, while acquisitions completed in 2005 and 2006 drove the
remainder of the revenue increase. The Company reported net income of $193.5
million, or $0.83 per diluted share, for the nine months ended September 30,
2006 compared to net income of $121.9 million, or $0.53 per diluted share, in the
same period last year.
Excluding one-time items, the
Company would have earned net income of $213.8 million, or $0.91 per diluted
share, for the nine months ended September 30, 2006, up 64.4% and 59.6%,
respectively, over net income of $130.0 million, or $0.57 per diluted share,
for the nine months ended September 30, 2005.
EBITDA was $393.1 million for
the nine months ended September 30, 2006, up $125.2 million or 46.7% compared
to the same period last year.
Management’s Commentary
“Our business continues to perform very well in all our major
geographies around the world,” said Brett White, CB Richard Ellis’ president
and chief executive officer. “Our premier brand, global platform and
client-service focus have enhanced our capture of market share and have
positioned us to benefit significantly from the generally strong commercial
real estate markets around the world. We are assisting many companies in the
expansion of their operations due to continuing economic growth, and rental
rates are rising as vacancy rates decline. As discussed previously, the
buoyancy of the leasing market more than offset the expected pullback in
investment sales activity. Overall, our business remains very strong as we
approach year-end, traditionally our busiest time of the year.”
Third-Quarter
Segment Highlights
Americas Region
Third quarter revenue for the Americas region, including the U.S.,
Canada, Mexico and Latin America, increased 13.2% to $584.7 million, compared
with $516.7 million for the third quarter of 2005. This largely organic revenue
increase was mainly attributable to a continued improving leasing trend as well
as higher mortgage brokerage, appraisal/valuation and property and facilities
management fees.
2
Operating income for the Americas region totaled $87.9 million for the
third quarter of 2006, compared with $64.5 million for the third quarter of
2005. Excluding the impact of one-time items, operating income for the Americas
region would have been $90.6 million for the third quarter of 2006, an increase
of $24.9 million, or 37.9%, as compared to $65.7 million for the third quarter
of last year. The Americas region’s EBITDA totaled $101.3 million for the third
quarter of 2006, an increase of $26.2 million, or 34.9%, from last year’s third
quarter.
EMEA Region
Revenue for the EMEA region, mainly consisting of operations in Europe,
increased 29.3% to $193.3 million for the third quarter of 2006, compared with
$149.6 million for the third quarter of 2005. Organic revenue growth accounted
for nearly half of this increase, with the remainder coming from acquisitions
completed in 2005 and 2006. Operating income for the EMEA segment totaled $35.1
million for the third quarter of 2006, compared with $26.7 million for the same
period last year. Excluding the impact of one-time items, operating income for
the EMEA region would have been $35.5 million for the third quarter of 2006, an
increase of $8.7 million, or 32.2%, from the third quarter of last year. EBITDA
for the EMEA region totaled $38.7 million for the third quarter of 2006, an
increase of $9.8 million, or 34.0%, from last year’s third quarter. These
improvements were primarily driven by significantly higher sales and leasing
activities as well as higher appraisal/valuation revenues.
Asia Pacific Region
In the Asia Pacific region, which includes operations in Asia,
Australia and New Zealand, revenue totaled $84.5 million for the third quarter
of 2006, a 91.6% increase from $44.1 million for the third quarter of 2005. The
Company’s acquisition of a majority stake in its Japanese affiliate IKOMA CB
Richard Ellis KK in January 2006 accounted for just over half of the revenue
increase, with the remainder primarily coming from organic growth throughout
the region. Operating income for the Asia Pacific segment totaled $5.0 million
for the third quarter of 2006, compared with $5.9 million for the same period
last year. EBITDA for the Asia Pacific segment totaled $8.3 million for the
third quarter of 2006, an increase of $1.9 million, or 30.0%, from last year’s
third quarter. Integration activities related to IKOMA and investment in growth
in China have impacted margins in the Asia Pacific segment; however the Company
expects that operating income and EBITDA will rise upon full integration of
IKOMA and as the benefits from investment spending in China are realized.
Global Investment Management Business
In the Global Investment Management segment, which consists of
investment management operations in the U.S., Europe and Asia, revenue totaled
$41.4 million for the third quarter of 2006, a 22.1% increase from the $33.9
million recorded in the third quarter of 2005. This increase was mainly due to
carried interest revenue earned in the U.S. as a result of
3
the liquidation of a fund. Assets under management grew to $25.0
billion as of the end of the third quarter, up $7.7 billion, or 44.5%, from
year-end 2005.
This segment reported operating income of $10.9 million for the third
quarter of 2006, compared with an operating loss of $1.2 million for the same
period last year. EBITDA for this segment totaled $15.2 million for the third
quarter of 2006, an increase of $14.3 million from last year’s third quarter.
The improved performance was mainly attributable to $13.5 million of revenue
from a fund liquidating (carried interest revenue) in the third quarter as well
as $3.8 million of lower incentive compensation expense recognized for
dedicated executives and team leaders associated with this segment’s carried
interest programs.
For the nine months ended September 30, 2006, the Company recorded a
total of $22.8 million of incentive compensation expense related to carried
interest revenue, only $2.0 million of which pertained to revenue recognized
during the nine months ended September 30, 2006 with the remainder relating to
future periods’ revenue. Revenues associated with these expenses cannot be
recognized until certain financial hurdles are met. The Company expects that it
will recognize income from funds liquidating in future quarters that will more
than offset accrued incentive compensation expense recognized. The Global
Investment Management segment did not incur any one-time costs in the current
or prior year quarter.
Other Business Highlights
The Company’s mortgage brokerage business continues to post steady
gains in loan origination volume. For the first nine months of 2006, total
volume increased 14.6% to $14.2 billion. The Company is benefiting from a
continued strong appetite for debt financing as well as increased referrals
from other CB Richard Ellis business lines.
The Company continued to post significant growth in its outsourcing
services directed to institutional and corporate customers. Net growth in the
U.S. Asset Services portfolio improved by 200% with a net gain of 43 million
square feet in the first nine months of 2006, compared with a 14 million square
foot increase for the same period in 2005. The Company also was awarded
significant new outsourcing assignments from corporate clients, including Wachovia,
WPP Group, Cintas, The Hartford, TIAA-CREF and RBC Dain Rauscher, totaling in
the aggregate approximately 39 million square feet globally.
Guidance
The Company is increasing its full year guidance for 2006. CB Richard
Ellis expects to generate full year diluted earnings per share growth of
approximately 45%, excluding one-time charges, as compared to 2005 performance.
4
The Company’s third-quarter earnings
conference call will be held on Thursday, October 26, 2006 at 10:30 a.m. EDT. A
live webcast will be accessible through the Investor Relations section of the
Company’s Web site at www.cbre.com.
The direct dial-in number for the conference call is 800-230-1096 (in
the U.S.) and 612-234-9959 (for international callers). A replay of the call
will be available beginning at 2:00 p.m. EDT through midnight November 10,
2006. The dial-in number for the replay is 800-475-6701 (in the U.S.) and
320-365-3844 (for international callers). The access code for the replay is
845537. A transcript of the call will be available on the Company’s Investor
Relations Web site.
About CB Richard Ellis
CB
Richard Ellis Group, Inc. (NYSE:CBG), a FORTUNE 1000 company headquartered in
Los Angeles, is the world’s largest commercial real estate services firm (in
terms of 2005 revenue). With approximately 14,500 employees, the Company serves
real estate owners, investors and occupiers through more than 200 offices
worldwide (excluding affiliate and partner offices). CB Richard Ellis offers
strategic advice and execution for property sales and leasing; corporate
services; property, facilities and project management; mortgage banking;
investment management; appraisal and valuation; and research and consulting.
Founded in 1906, CB Richard Ellis marks a century of excellence in real estate
services this year. Please visit our Web site at www.cbre.com.
Note: This release contains
forward-looking statements within the meaning of the “safe harbor” provisions
of the Private Securities Litigation Reform Act of 1995, including statements
regarding our growth momentum in 2006, future operations and future financial
performance. These forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause the Company’s actual results and
performance in future periods to be materially different from any future
results or performance suggested in forward-looking statements in this release.
Any forward-looking statements speak only as of the date of this release and, except to the extent required by applicable
securities laws, the Company expressly disclaims any obligation to
update or revise any of them to reflect actual results, any changes in
expectations or any change in events. If
the Company does update one or more forward-looking statements, no inference
should be drawn that it will make additional updates with respect to those or
other forward-looking statements. Factors that could cause results to
differ materially include, but are not limited to: commercial real estate
vacancy levels; employment conditions and their effect on vacancy rates;
property values; rental rates; interest rates; realization of values in
investment funds to offset related incentive compensation expense; any general
economic recession domestically or internationally; general conditions of
financial liquidity for real estate transactions; our ability to leverage our
platform to sustain revenue growth; our ability to retain and incentivize producers;
our levels of borrowing; and the integration of our acquisitions.
Additional
information concerning factors that may influence CB Richard Ellis Group, Inc.’s
financial information is discussed under “Risk Factors”, “Management’s
Discussion and Analysis of Financial Condition and Results of Operations”, “Quantitative
and Qualitative Disclosures About Market Risk” and “Forward-Looking Statements”
in our Annual Report on Form 10-K for the year ended December 31, 2005, and
under “Management’s Discussion and Analysis of Financial Condition and Results
of Operations”, “Quantitative and Qualitative Disclosures About Market Risk”
and “Forward-Looking Statements” in our Quarterly Report on Form 10-Q for the
quarter ended June 30, 2006, as well as in the Company’s press releases and
other periodic filings with the Securities and Exchange Commission. Such
filings are available
5
publicly
and may be obtained off the Company’s Web site at www.cbre.com or upon request
from the CB Richard Ellis Investor Relations Department at investorrelations@cbre.com.
(1) One-time charges include
amortization expense related to net revenue backlog acquired in acquisitions,
integration costs related to acquisitions and loss on extinguishment of debt.
(2) A reconciliation of net income to net
income, as adjusted for one-time items, is provided in the exhibits to this
release.
(3) The
Company’s management believes that EBITDA is useful in evaluating its
performance compared to that of other companies in its industry because the
calculation of EBITDA generally eliminates the effects of financing and income
taxes and the accounting effects of capital spending and acquisitions, which
items may vary for different companies for reasons unrelated to overall
operating performance. As a result, the Company’s management uses EBITDA as a
measure to evaluate the performance of various business lines and for other
discretionary purposes, including as a significant component when measuring its
performance under its employee incentive programs.
However, EBITDA is not a
recognized measurement under U.S. generally accepted accounting principles
(GAAP), and when analyzing the Company’s operating performance, readers should
use EBITDA in addition to, and not as an alternative for, net income determined
in accordance with GAAP. Because not all companies use identical calculations,
the Company’s presentation of EBITDA may not be comparable to similarly titled
measures of other companies. Furthermore, EBITDA is not intended to be a
measure of free cash flow for management’s discretionary use, as it does not
consider certain cash requirements such as tax and debt service payments. The
amounts shown for EBITDA also differ from the amounts calculated under
similarly titled definitions in the Company’s debt instruments, which are
further adjusted to reflect certain other cash and non-cash charges and are
used to determine compliance with financial covenants and the Company’s ability
to engage in certain activities, such as incurring additional debt and making
certain restricted payments.
For a reconciliation of
EBITDA with the most comparable financial measures calculated and presented in
accordance with GAAP, see the section of this press release titled “Non-GAAP
Financial Measures.”
6
CB RICHARD ELLIS
GROUP, INC.
OPERATING RESULTS
FOR THE THREE AND
NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005
(Dollars in
thousands, except share data)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
|
2006
|
|
2005
|
|
2006
|
|
2005
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
903,876
|
|
$
|
744,198
|
|
$
|
2,420,195
|
|
$
|
1,954,627
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
Cost of services
|
|
456,994
|
|
380,943
|
|
1,209,935
|
|
987,680
|
|
|
Operating, administrative and other
|
|
293,122
|
|
255,706
|
|
841,881
|
|
720,657
|
|
|
Depreciation and amortization
|
|
14,892
|
|
11,665
|
|
42,077
|
|
32,853
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
138,868
|
|
95,884
|
|
326,302
|
|
213,437
|
|
|
Equity income from unconsolidated
subsidiaries
|
|
9,135
|
|
4,068
|
|
25,976
|
|
23,441
|
|
|
Minority interest (income) expense
|
|
(577
|
)
|
440
|
|
1,232
|
|
1,793
|
|
|
Interest income
|
|
1,002
|
|
2,367
|
|
7,568
|
|
7,870
|
|
|
Interest expense
|
|
7,468
|
|
15,794
|
|
34,755
|
|
42,766
|
|
|
Loss on extinguishment of debt
|
|
—
|
|
624
|
|
22,255
|
|
7,386
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before provision for income taxes
|
|
142,114
|
|
85,461
|
|
301,604
|
|
192,803
|
|
|
Provision for income taxes
|
|
49,805
|
|
28,525
|
|
108,131
|
|
70,874
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
92,309
|
|
$
|
56,936
|
|
$
|
193,473
|
|
$
|
121,929
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income per share
|
|
$
|
0.41
|
|
$
|
0.26
|
|
$
|
0.86
|
|
$
|
0.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding for
basic income per share
|
|
226,749,704
|
|
222,532,011
|
|
226,095,680
|
|
221,502,507
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income per share
|
|
$
|
0.39
|
|
$
|
0.25
|
|
$
|
0.83
|
|
$
|
0.53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding for
diluted income per share
|
|
233,943,772
|
|
230,331,813
|
|
233,519,809
|
|
229,334,424
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
|
163,472
|
|
$
|
111,177
|
|
$
|
393,123
|
|
$
|
267,938
|
|
7
CB RICHARD ELLIS
GROUP, INC.
SEGMENT RESULTS
FOR THE THREE AND
NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005
(Dollars in
thousands)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
|
2006
|
|
2005
|
|
2006
|
|
2005
|
|
|
Americas
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
584,674
|
|
$
|
516,665
|
|
$
|
1,592,716
|
|
$
|
1,387,657
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
Cost of services
|
|
317,958
|
|
294,693
|
|
853,793
|
|
757,945
|
|
|
Operating, administrative and other
|
|
169,647
|
|
149,375
|
|
498,457
|
|
440,144
|
|
|
Depreciation and amortization
|
|
9,143
|
|
8,088
|
|
25,024
|
|
22,471
|
|
|
Operating income
|
|
$
|
87,926
|
|
$
|
64,509
|
|
$
|
215,442
|
|
$
|
167,097
|
|
|
EBITDA
|
|
$
|
101,259
|
|
$
|
75,049
|
|
$
|
251,007
|
|
$
|
198,344
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EMEA
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
193,340
|
|
$
|
149,574
|
|
$
|
498,856
|
|
$
|
374,823
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
Cost of services
|
|
93,798
|
|
64,499
|
|
232,698
|
|
169,204
|
|
|
Operating, administrative and other
|
|
61,211
|
|
55,861
|
|
173,023
|
|
160,852
|
|
|
Depreciation and amortization
|
|
3,247
|
|
2,543
|
|
11,564
|
|
7,357
|
|
|
Operating income
|
|
$
|
35,084
|
|
$
|
26,671
|
|
$
|
81,571
|
|
$
|
37,410
|
|
|
EBITDA
|
|
$
|
38,701
|
|
$
|
28,891
|
|
$
|
93,897
|
|
$
|
44,139
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia Pacific
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
84,492
|
|
$
|
44,090
|
|
$
|
229,844
|
|
$
|
121,249
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
Cost of services
|
|
45,238
|
|
21,751
|
|
123,444
|
|
60,531
|
|
|
Operating, administrative and other
|
|
32,299
|
|
15,907
|
|
84,402
|
|
45,108
|
|
|
Depreciation and amortization
|
|
1,990
|
|
572
|
|
3,976
|
|
1,720
|
|
|
Operating income
|
|
$
|
4,965
|
|
$
|
5,860
|
|
$
|
18,022
|
|
$
|
13,890
|
|
|
EBITDA
|
|
$
|
8,344
|
|
$
|
6,418
|
|
$
|
22,586
|
|
$
|
16,126
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Investment Management
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
41,370
|
|
$
|
33,869
|
|
$
|
98,779
|
|
$
|
70,898
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
Operating, administrative and other
|
|
29,965
|
|
34,563
|
|
85,999
|
|
74,553
|
|
|
Depreciation and amortization
|
|
512
|
|
462
|
|
1,513
|
|
1,305
|
|
|
Operating income (loss)
|
|
$
|
10,893
|
|
$
|
(1,156
|
)
|
$
|
11,267
|
|
$
|
(4,960
|
)
|
|
EBITDA
|
|
$
|
15,168
|
|
$
|
819
|
|
$
|
25,633
|
|
$
|
9,329
|
|
8
Non-GAAP Financial Measures
The following measures are considered “non-GAAP financial measures”
under SEC guidelines:
(i) Net income, as
adjusted for one-time items
(ii) Diluted earnings per
share, as adjusted for one-time items
(iii) EBITDA
(iv) Operating income, as
adjusted for one-time items
The Company believes that these non-GAAP financial measures provide a
more complete understanding of ongoing operations and enhance comparability of
current results to prior periods as well as presenting the effects of one-time
items in all periods presented. The Company believes that investors may find it
useful to see these non-GAAP financial measures to analyze financial
performance without the impact of one-time items that may obscure trends in the
underlying performance of its business.
9
Net income, as
adjusted for one-time items and diluted earnings per share, as adjusted for
one-time items are calculated as follows (dollars in thousands, except per
share data):
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
|
2006
|
|
2005
|
|
2006
|
|
2005
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
92,309
|
|
$
|
56,936
|
|
$
|
193,473
|
|
$
|
121,929
|
|
|
Amortization expense related to net revenue
backlog acquired in acquisitions, net of tax
|
|
834
|
|
—
|
|
2,837
|
|
—
|
|
|
Integration costs related to acquisitions,
net of tax
|
|
1,353
|
|
548
|
|
3,443
|
|
3,683
|
|
|
Loss on extinguishment of debt, net of tax
|
|
7
|
|
(6
|
)
|
14,050
|
|
4,402
|
|
|
Net income, as adjusted
|
|
$
|
94,503
|
|
$
|
57,478
|
|
$
|
213,803
|
|
$
|
130,014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income per share, as adjusted
|
|
$
|
0.40
|
|
$
|
0.25
|
|
$
|
0.91
|
|
$
|
0.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding for
diluted income per share, as adjusted
|
|
233,943,772
|
|
230,331,813
|
|
233,519,809
|
|
229,334,424
|
|
EBITDA for the
Company is calculated as follows (dollars in thousands):
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
|
2006
|
|
2005
|
|
2006
|
|
2005
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
92,309
|
|
$
|
56,936
|
|
$
|
193,473
|
|
$
|
121,929
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
14,892
|
|
11,665
|
|
42,077
|
|
32,853
|
|
|
Interest expense
|
|
7,468
|
|
15,794
|
|
34,755
|
|
42,766
|
|
|
Loss on extinguishment of debt
|
|
—
|
|
624
|
|
22,255
|
|
7,386
|
|
|
Provision for income taxes
|
|
49,805
|
|
28,525
|
|
108,131
|
|
70,874
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
1,002
|
|
2,367
|
|
7,568
|
|
7,870
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
|
163,472
|
|
$
|
111,177
|
|
$
|
393,123
|
|
$
|
267,938
|
|
10
Operating
income, as adjusted for one-time items is calculated as follows (dollars in
thousands):
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
|
2006
|
|
2005
|
|
2006
|
|
2005
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
87,926
|
|
$
|
64,509
|
|
$
|
215,442
|
|
$
|
167,097
|
|
|
Amortization expense related to net revenue
backlog acquired in acquisitions
|
|
1,319
|
|
—
|
|
1,319
|
|
—
|
|
|
Integration costs related to acquisitions
|
|
1,328
|
|
1,180
|
|
3,582
|
|
4,751
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income, as adjusted
|
|
$
|
90,573
|
|
$
|
65,689
|
|
$
|
220,343
|
|
$
|
171,848
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EMEA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
35,084
|
|
$
|
26,671
|
|
$
|
81,571
|
|
$
|
37,410
|
|
|
Amortization expense related to net revenue
backlog acquired in acquisitions
|
|
—
|
|
—
|
|
3,174
|
|
—
|
|
|
Integration costs related to acquisitions
|
|
434
|
|
195
|
|
1,443
|
|
1,432
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income, as adjusted
|
|
$
|
35,518
|
|
$
|
26,866
|
|
$
|
86,188
|
|
$
|
38,842
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia Pacific
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
4,965
|
|
$
|
5,860
|
|
$
|
18,022
|
|
$
|
13,890
|
|
|
Integration costs related to acquisitions
|
|
382
|
|
—
|
|
429
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income, as adjusted
|
|
$
|
5,347
|
|
$
|
5,860
|
|
$
|
18,451
|
|
$
|
13,890
|
|
Global
Investment Management
The Global Investment Management segment did not incur any one-time
costs associated with acquisitions in the current or prior year period.
11
EBITDA for
segments is calculated as follows (dollars in thousands):
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
|
2006
|
|
2005
|
|
2006
|
|
2005
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
54,840
|
|
$
|
37,428
|
|
$
|
112,498
|
|
$
|
88,560
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
9,143
|
|
8,088
|
|
25,024
|
|
22,471
|
|
|
Interest expense
|
|
5,407
|
|
11,459
|
|
28,873
|
|
34,131
|
|
|
Loss on extinguishment of debt
|
|
—
|
|
624
|
|
22,255
|
|
7,386
|
|
|
Provision for income taxes
|
|
32,462
|
|
19,355
|
|
68,553
|
|
50,796
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
593
|
|
1,905
|
|
6,196
|
|
5,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
|
101,259
|
|
$
|
75,049
|
|
$
|
251,007
|
|
$
|
198,344
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EMEA
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
26,043
|
|
$
|
17,130
|
|
$
|
57,555
|
|
$
|
22,141
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
3,247
|
|
2,543
|
|
11,564
|
|
7,357
|
|
|
Interest expense
|
|
762
|
|
2,377
|
|
1,621
|
|
3,605
|
|
|
Provision for income taxes
|
|
8,839
|
|
7,169
|
|
24,053
|
|
13,597
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
190
|
|
328
|
|
896
|
|
2,561
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
|
38,701
|
|
$
|
28,891
|
|
$
|
93,897
|
|
$
|
44,139
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia Pacific
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
3,241
|
|
$
|
3,324
|
|
$
|
8,942
|
|
$
|
8,671
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
1,990
|
|
572
|
|
3,976
|
|
1,720
|
|
|
Interest expense
|
|
775
|
|
703
|
|
2,486
|
|
2,146
|
|
|
Provision for income taxes
|
|
2,411
|
|
1,855
|
|
7,346
|
|
3,723
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
73
|
|
36
|
|
164
|
|
134
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
|
8,344
|
|
$
|
6,418
|
|
$
|
22,586
|
|
$
|
16,126
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Investment Management
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
8,185
|
|
$
|
(946
|
)
|
$
|
14,478
|
|
$
|
2,557
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
512
|
|
462
|
|
1,513
|
|
1,305
|
|
|
Interest expense
|
|
524
|
|
1,255
|
|
1,775
|
|
2,884
|
|
|
Provision for income taxes
|
|
6,093
|
|
146
|
|
8,179
|
|
2,758
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
146
|
|
98
|
|
312
|
|
175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
|
15,168
|
|
$
|
819
|
|
$
|
25,633
|
|
$
|
9,329
|
|
12
CB RICHARD ELLIS
GROUP, INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Dollars in
thousands)
|
|
|
September 30,
|
|
December 31,
|
|
|
|
|
2006
|
|
2005
|
|
|
Assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
138,273
|
|
$
|
449,289
|
|
|
Restricted cash
|
|
8,737
|
|
5,179
|
|
|
Receivables, net
|
|
504,430
|
|
483,175
|
|
|
Warehouse receivable (1)
|
|
92,900
|
|
255,963
|
|
|
Property and equipment, net
|
|
153,781
|
|
137,655
|
|
|
Goodwill and other intangibles, net
|
|
1,075,924
|
|
989,719
|
|
|
Deferred compensation assets
|
|
184,548
|
|
144,597
|
|
|
Other assets, net
|
|
435,533
|
|
350,095
|
|
|
Total assets
|
|
$
|
2,594,126
|
|
$
|
2,815,672
|
|
|
Liabilities:
|
|
|
|
|
|
|
Current liabilities, excluding debt
|
|
$
|
750,269
|
|
$
|
853,738
|
|
|
Warehouse line of credit (1)
|
|
92,900
|
|
255,963
|
|
|
Revolving credit facility
|
|
139,762
|
|
—
|
|
|
Senior secured term loan tranche B
|
|
—
|
|
265,250
|
|
|
11¼% senior subordinated notes
|
|
—
|
|
163,021
|
|
|
9¾% senior notes
|
|
130,000
|
|
130,000
|
|
|
Other debt
|
|
27,998
|
|
18,987
|
|
|
Deferred compensation liability
|
|
200,243
|
|
172,871
|
|
|
Other long-term liabilities
|
|
198,397
|
|
155,333
|
|
|
Total liabilities
|
|
1,539,569
|
|
2,015,163
|
|
|
|
|
|
|
|
|
|
Minority interest
|
|
28,715
|
|
6,824
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity
|
|
1,025,842
|
|
793,685
|
|
|
Total liabilities and stockholders’ equity
|
|
$
|
2,594,126
|
|
$
|
2,815,672
|
|
(1) Represents Freddie Mac loan receivables, which are offset by the
related non-recourse warehouse line of credit facility.
13