Business Services Industry
CB Richard Ellis Group, Inc. Reports Higher Results for First Quarter 2005 and Raises Full Year Guidance
Business Wire, May 4, 2005
CB RICHARD ELLIS GROUP, INC.
OPERATING RESULTS
FOR THE THREE MONTHS ENDED MARCH 31, 2005 AND 2004
(Dollars in thousands, except share data)
(Unaudited)
Three Months Ended
March 31,
-----------------------
2005 2004
----------- -----------
Revenue $538,266 $440,992
Costs and expenses:
Cost of services 268,046 224,222
Operating, administrative and other 223,221 199,251
Depreciation and amortization 10,370 16,831
Merger-related charges - 9,960
----------- -----------
Operating income (loss) 36,629 (9,272)
Equity income from unconsolidated
subsidiaries 3,241 2,526
Interest income 2,445 1,273
Interest expense 13,598 19,645
Loss on extinguishment of debt 4,930 -
----------- -----------
Income (loss) before provision (benefit) for
income taxes 23,787 (25,118)
Provision (benefit) for income taxes 9,215 (8,550)
----------- -----------
Net income (loss) $14,572 $(16,568)
=========== ===========
Basic income (loss) per share $0.20 $(0.26)
=========== ===========
Weighted average shares outstanding for basic
income (loss) per share 73,532,843 62,522,176
=========== ===========
Diluted income (loss) per share $0.19 $(0.26)
=========== ===========
Weighted average shares outstanding for
diluted income (loss) per share 76,184,725 62,522,176
=========== ===========
EBITDA $50,240 $10,085
=========== ===========
CB RICHARD ELLIS GROUP, INC.
SEGMENT RESULTS
FOR THE THREE MONTHS ENDED MARCH 31, 2005 AND 2004
(Dollars in thousands)
(Unaudited)
Three Months Ended
March 31,
-------------------
2005 2004
--------- ---------
Americas
--------
Revenue $381,114 $318,601
Costs and expenses:
Cost of services 199,957 173,896
Operating, administrative and other 140,619 126,009
Depreciation and amortization 6,928 9,973
Merger-related charges - 7,617
--------- ---------
Operating income $33,610 $1,106
========= =========
EBITDA $43,438 $12,805
========= =========
EMEA
----
Revenue $102,110 $79,826
Costs and expenses:
Cost of services 49,775 36,225
Operating, administrative and other 49,894 46,021
Depreciation and amortization 2,424 5,647
Merger-related charges - 2,042
--------- ---------
Operating income (loss) $17 $(10,109)
========= =========
EBITDA $2,259 $(4,711)
========= =========
Asia Pacific
------------
Revenue $33,875 $25,560
Costs and expenses:
Cost of services 18,314 14,101
Operating, administrative and other 13,507 11,184
Depreciation and amortization 599 634
--------- ---------
Operating income (loss) $1,455 $(359)
========= =========
EBITDA $2,142 $570
========= =========
Global Investment Management
----------------------------
Revenue $21,167 $17,005
Costs and expenses:
Operating, administrative and other 19,201 16,037
Depreciation and amortization 419 577
Merger-related charges - 301
--------- ---------
Operating income $1,547 $90
========= =========
EBITDA $2,401 $1,421
========= =========
Non-GAAP Financial Measures
The following measures are considered "non-GAAP financial
measures" under SEC guidelines:
(i) Net income (loss), as adjusted for one-time items
(ii) Diluted earnings (loss) per share, as adjusted for one-time items
(iii) EBITDA
(iv) Operating income (loss), 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.
Net income (loss), as adjusted for one-time items and diluted
earnings (loss) per share, as adjusted for one-time items are
calculated as follows (dollars in thousands):
Three Months Ended
March 31,
------------------------------
2005 2004
-------------- ---------------
Net income (loss) $14,572 $(16,568)
Amortization expense related to net
revenue backlog acquired in the
Insignia acquisition, net of tax - 4,288
Merger-related charges related to the
Insignia acquisition, net of tax - 6,266
Integration costs related to the
Insignia acquisition, net of tax 1,478 3,366
Loss on extinguishment of debt, net of
tax 2,966 -
-------------- ---------------
Net income (loss), as adjusted $19,016 $(2,648)
============== ===============
Diluted income (loss) per share, as
adjusted $0.25 $(0.03)
============== ===============
Weighted average shares outstanding for
diluted income (loss) per share, as
adjusted 76,184,725 62,522,176
============== ===============
EBITDA for the Company is calculated as follows (dollars in
thousands):
Three Months Ended
March 31,
-------------------------------
2005 2004
--------------- ---------------
Net income (loss) $14,572 $(16,568)
Add:
Depreciation and amortization 10,370 16,831
Interest expense 13,598 19,645
Loss on extinguishment of debt 4,930 -
Provision (benefit) for income taxes 9,215 (8,550)
Less:
Interest income 2,445 1,273
--------------- ---------------
EBITDA $50,240 $10,085
=============== ===============
Operating income (loss), as adjusted for one-time items is
calculated as follows (dollars in thousands):
Three Months Ended
March 31,
-----------------------
2005 2004
----------- -----------
Americas
--------
Operating income $33,610 $1,106
Amortization expense relating to net revenue
backlog acquired in the Insignia acquisition - 3,492
Merger-related charges related to the Insignia
acquisition - 7,617
Integration costs related to the Insignia
acquisition 1,831 4,723
----------- -----------
Operating income, as adjusted $35,441 $16,938
=========== ===========
EMEA
----
Operating income (loss) $17 $(10,109)
Amortization expense related to net revenue
backlog acquired in the Insignia acquisition - 3,324
Merger-related charges related to the Insignia
acquisition - 2,042
Integration costs related to the Insignia
acquisition 625 628
----------- -----------
Operating income (loss), as adjusted $642 $(4,115)
=========== ===========
Asia Pacific
------------
Operating income (loss) $1,455 $(359)
=========== ===========
Global Investment Management
----------------------------
Operating income $1,547 $90
Merger-related charges related to the Insignia
acquisition - 301
----------- -----------
Operating income, as adjusted $1,547 $391
=========== ===========
The Company does not allocate net interest expense, loss on
extinguishment of debt or provision (benefit) for income taxes among
its segments. Accordingly, EBITDA for segments is calculated as
follows (dollars in thousands):
Three Months
Ended
March 31,
------------------
2005 2004
-------- ---------
Americas
--------
Operating income $33,610 $1,106
Add:
Depreciation and amortization 6,928 9,973
Equity income from unconsolidated subsidiaries 2,900 1,726
-------- ---------
EBITDA $43,438 $12,805
======== =========
EMEA
----
Operating income (loss) $17 $(10,109)
Add:
Depreciation and amortization 2,424 5,647
Equity loss from unconsolidated subsidiaries (182) (249)
-------- ---------
EBITDA $2,259 $(4,711)
======== =========
Asia Pacific
------------
Operating income (loss) $1,455 $(359)
Add:
Depreciation and amortization 599 634
Equity income from unconsolidated subsidiaries 88 295
-------- ---------
EBITDA $2,142 $570
======== =========
Global Investment Management
----------------------------
Operating income $1,547 $90
Add:
Depreciation and amortization 419 577
Equity income from unconsolidated subsidiaries 435 754
-------- ---------
EBITDA $2,401 $1,421
======== =========
CB RICHARD ELLIS GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)
March 31, December 31,
2005 2004
----------- -----------
Assets:
Cash and cash equivalents $157,784 $256,896
Restricted cash 9,104 9,213
Receivables, net 293,844 394,062
Warehouse receivable (1) 43,790 138,233
Property and equipment, net 134,576 137,703
Goodwill and other intangibles, net 933,048 935,161
Deferred compensation assets 111,091 102,578
Other assets, net 317,028 297,790
----------- -----------
Total assets $2,000,265 $2,271,636
=========== ===========
Liabilities:
Current liabilities, excluding debt $473,620 $637,165
Warehouse line of credit (1) 43,790 138,233
Senior secured term loan tranche B 274,100 277,050
11 1/4% senior subordinated notes 178,979 205,032
9 3/4% senior notes 130,000 130,000
Other debt 23,273 22,492
Deferred compensation liability 160,742 160,281
Other long-term liabilities 129,603 135,510
----------- -----------
Total liabilities 1,414,107 1,705,763
Minority interest 6,675 5,925
Stockholders' equity 579,483 559,948
----------- -----------
Total liabilities and stockholders' equity $2,000,265 $2,271,636
=========== ===========
(1) Includes Freddie MAC loan receivables and related non-recourse
warehouse line of credit of $43.8 million and $138.2 million at
March 31, 2005 and December 31, 2004, respectively.
COPYRIGHT 2005 Business Wire
COPYRIGHT 2008 Gale, Cengage Learning
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