Mr. Jay Hennick reports

COLLIERS REPORTS STRONG FIRST QUARTER RESULTS

Colliers International Group Inc. has released its operating and financial results for the first quarter ended March 31, 2022. All amounts are in U.S. dollars.

For the quarter ended March 31, 2022, revenues were $1-billion, up 29 per cent (31 per cent in local currency) relative to the same quarter in the prior year. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $121.5-million, up 32 per cent (33 per cent in local currency) and adjusted EPS (earnings per share) was $1.44, up 38 per cent versus the prior-year period. First quarter adjusted EPS would have been approximately two cents higher excluding foreign exchange impacts. GAAP (generally accepted accounting principles) operating earnings were $40.8-million and included a $26.1-million loss on disposal of the company's Russian operations. GAAP operating earnings in the quarter were up 2 per cent versus $40-million in the prior-year quarter. GAAP diluted net loss per share was 42 cents, versus diluted net earnings of 11 cents in the prior-year quarter. First quarter GAAP EPS would have been approximately two cents higher, excluding changes in foreign exchange rates.

"Colliers delivered strong first quarter results building on the momentum coming out of 2021," said Jay S. Hennick, global chairman and chief executive officer of Colliers. "Revenues, AEBITDA and AEPS were all up sharply, and we were pleased to see assets under management (AUM) in our investment management segment also up considerably.

"Last week, we announced the promotion of Chris McLernon to chief executive officer of real estate services, global. Over the past 12 years as the leader of our EMEA business, Chris delivered exceptional results. He is a true culture carrier and has a deep understanding of the Colliers way of operating. In his new role, he will have direct oversight of Colliers's capital markets, leasing, and outsourcing and advisory businesses globally, reporting to me. Having him on board will provide us with the additional bench strength we need to successfully pursue our ambitious 2025 growth plan.

"During the quarter, we were also busy on the acquisition front. We added our affiliate operations in Cincinnati and Cleveland, completed the previously announced acquisition of our affiliate in Italy, and Colliers Engineering & Design expanded its operations in the U.S. Southwest. Just after quarter end, we also completed the previously announced addition of Antirion which is being integrated into our Colliers Global Investors platform in Europe. Once we complete the Basalt Infrastructure transaction later this year, our investment management business will represent about 23 per cent of our consolidated AEBITDA. This marks an important milestone in our service line diversification and continues the transformation of Colliers into a different kind of company. In the future, we expect our investment management segment to represent an even greater proportion of our overall AEBITDA. So far this year we have completed or announced acquisition investments totalling more than $400-million and our pipeline of potential opportunities remains solid. If we are successful, 2022 would result in a record year of capital allocation for Colliers.

"The leadership of our company has a proven, 27-year track record of creating significant value for shareholders. The Colliers business model is balanced, highly diversified and asset-light. These characteristics, together with our enterprising culture, growth mindset and substantial inside ownership, position us well to continue delivering superior returns for shareholders in the future," he concluded.

Segmented first quarter results

Revenues in the Americas region totalled $641.7-million for the first quarter, up 35 per cent (35 per cent in local currency) versus $475.8-million in the prior-year quarter. Revenue growth was evenly distributed across all service lines. Leasing and capital markets activity was strong, particularly in industrial, land and multifamily asset classes. Outsourcing and advisory revenues increased on solid growth in engineering and design (including recent acquisitions), valuation and loan servicing. Adjusted EBITDA was $81.1-million, up 42 per cent (43 per cent in local currency) over the prior-year quarter on higher revenues. GAAP operating earnings were $61.3-million, relative to $42.9-million in the prior-year quarter.

Revenues in the EMEA (Europe, Middle East and Africa) region totalled $153.3-million for the first quarter, up 22 per cent (30 per cent in local currency) compared with $126.1-million in the prior-year quarter with solid growth across all service lines. Leasing and capital markets benefited from solid transaction activity while outsourcing and advisory revenue growth was driven by a strong recovery in project management revenues. Adjusted EBITDA was $4.9-million, up 9 per cent (23 per cent in local currency) over the prior year. GAAP operating loss was $30.8-million and included the loss on disposal of the company's Russian operations, versus an operating loss of $1.1-million in the prior-year quarter.

Revenues in the Asia Pacific region totalled $119.4-million for the first quarter compared with $128.3-million in the prior-year quarter, down 7 per cent (down 3 per cent in local currency). Revenue growth was impacted primarily by the impact of COVID-19 lockdowns in several Asian markets. Adjusted EBITDA was $10.2-million, down from $15.5-million in the prior-year quarter. GAAP operating earnings was $8.2-million, versus $11.7-million in the prior-year quarter.

Investment management revenues for the first quarter were $86.4-million compared with $44.6-million in the prior-year quarter, up 94 per cent (94 per cent in local currency). Passthrough revenue from historical carried interest represented $24.7-million for the quarter versus nil in the prior-year quarter. Excluding the impact of carried interest, revenue was up 38 per cent (38 per cent in local currency) driven by management fee growth from increased assets under management. Adjusted EBITDA was $26.8-million, up 51 per cent (51 per cent in local currency) over the prior-year quarter. GAAP operating earnings were $17.2-million in the quarter, versus $9.9-million in the prior-year quarter. Assets under management were $52.4-billion on March 31, 2022, up 26 per cent from $41.6-billion on March 31, 2021. Including Antirion, completed on April 1, 2022, assets under management are now $57-billion.

Unallocated global corporate costs as reported in adjusted EBITDA were $1.5-million in the first quarter, relative to $2.6-million in the prior-year quarter. The corporate GAAP operating loss for the quarter was $15.1-million relative to a loss of $23.4-million in the first quarter of 2021, with the prior-year period impacted by contingent acquisition consideration expense related to acquisitions.

Outlook for 2022

The company is increasing its outlook for full-year 2022 to reflect strong first quarter operating results as well as the impact of acquisitions. The financial outlook is based on the company's best available information as of the date of this press release, and remains subject to change based on, but not limited to, numerous macroeconomic, health, social, geopolitical (including escalation of hostilities, outbreak or continuation of war, elections, disruption of supply chains) and related factors.

Disposal of Russian operations

In March, 2022, Colliers discontinued its operations in Russia and terminated its affiliate in Belarus. The disposal of the company's operations resulted in a loss of $26.1-million, the majority of which was attributable to the realization of accumulated foreign currency translation losses. The loss was not tax deductible and was substantially all non-cash.

Repurchase of subordinate voting shares

During the period from March 3, 2022, to April 25, 2022, the company purchased 999,439 subordinate voting shares for total consideration of $126.4-million under its current normal course issuer bid (NCIB) at a weighted average purchase price of $126.42 per share. Under the NCIB, all shares are purchased for cancellation. Colliers may purchase its subordinate voting shares, from time to time, if it believes that the market price of its subordinate voting shares is attractive, and that the purchase would be an appropriate use of corporate funds and in the best interests of Colliers.

Conference call

Colliers will be holding a conference call on Tuesday, May 3, 2022, at 11 a.m. Eastern Time to discuss the quarter's results. The call, as well as a supplemental slide presentation, will be simultaneously webcast, and can be accessed live or after the call at the company's website in the events section.

About Colliers International Group Inc.

Colliers is a leading diversified professional services and investment management company. With operations in 62 countries, its 17,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. For more than 27 years, the company's experienced leadership with significant inside ownership has delivered compound annual investment returns of 20 per cent for shareholders. With annual revenues of $4.3-billion and $57-billion of assets under management, Colliers maximizes the potential of property and real assets to accelerate the success of its clients, its investors and its people.

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