14:42:49 EDT Thu 28 Mar 2024
Enter Symbol
or Name
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Colliers International Group Inc
Symbol CIGI
Shares Issued 41,951,236
Close 2022-08-02 C$ 158.20
Market Cap C$ 6,636,685,535
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Colliers Int'l earns $66.73-million (U.S.) in Q2 2022

2022-08-03 09:11 ET - News Release

Mr. Jay Hennick reports

COLLIERS REPORTS STRONG SECOND QUARTER RESULTS

Colliers International Group Inc. has released operating and financial results for the second quarter ended June 30, 2022. All amounts are in U.S. dollars.

For the quarter ended June 30, 2022, revenues were $1.13-billion, up 19 per cent (23 per cent in local currency), adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $161.3-million, up 18 per cent (21 per cent in local currency), and adjusted EPS (earnings per share) was $1.84, up 16 per cent versus the prior-year period. Second quarter adjusted EPS would have been approximately five cents higher excluding foreign exchange impacts. GAAP (generally accepted accounting principles) operating earnings were $103.9-million. Prior-year GAAP operating loss of $385.8-million included a $471.9-million settlement of the long-term incentive arrangement (LTIA) with the company's chairman and chief executive officer, which was approved by 95 per cent of disinterested shareholders. GAAP diluted net earnings per share were 67 cents versus diluted net loss of $10.53 in the prior-year quarter. Second quarter GAAP EPS would have been approximately five cents higher excluding changes in foreign exchange rates.

For the six months ended June 30, 2022, revenues were $2.13-billion, up 24 per cent (27 per cent in local currency), adjusted EBITDA was $282.8-million, up 24 per cent (26 per cent in local currency), and adjusted EPS was $3.28, up 24 per cent versus prior year. Six months ended June 30, 2022, adjusted EPS would have been approximately seven cents higher excluding foreign exchange impacts. The GAAP operating earnings were $144.7-million and included $27-million loss on disposal of the company's operations in Russia. Prior-year GAAP operating loss of $345.8-million included the settlement of the LTIA. The GAAP earnings per share were 26 cents as compared with diluted loss per share of $10.80. Year-to-date GAAP EPS would have been approximately eight cents higher excluding changes in foreign exchange rates.

"Colliers reported strong second quarter results with continued solid revenue growth across all service lines," said Jay S. Hennick, global chairman and CEO of Colliers.

"During the quarter, we also continued to grow our investment management segment in both size and scale, furthering our goal of becoming a major player in the rapidly growing alternative private capital industry. We completed two acquisitions and a third after quarter-end. Then, in late June, we announced the addition of Versus Capital, a highly successful alternative real asset manager in the U.S. with strong private wealth distribution capabilities. Once completed, Colliers will have more than $85-billion in assets under management (AUM).

"Investment management now comprises about 30 per cent of Colliers's pro forma annualized adjusted EBITDA and the business compares very favourably with other public peers in the investment management industry. Our revenues are predominately from recurring management fees, about 90 per cent of our investment funds are perpetual or long-dated strategies -- defined as 10 years or more -- and 70 per cent are in rapidly growing sectors like alternatives and infrastructure. Most importantly, each of our platforms has a long history of delivering top-tier performance for investors through all investment cycles. Over the past six years, Colliers has built an impressive investment management business and we continue to see great potential in the years to come.

"Separately, during the quarter, we added a building consultancy and project management leader in the U.K., enhancing our service capabilities in Europe and continuing the growth of our outsourcing and advisory segment.

"Over all, Colliers continues to transform into a more resilient, global and diversified services company with 55 per cent of our pro forma earnings coming from recurring revenue streams and the balance from essential advisory services. Based on acquisitions already completed or announced, we expect 2022 to be a record year of capital deployment, with more than $1-billion invested.

"With our strong global brand and operating platform, proven track record of more than 27 years, balanced and diversified business model, unique enterprising culture, and significant inside ownership, we expect to continue delivering excellent returns for shareholders for many years to come," he concluded.

Consolidated revenues for the second quarter increased 23 per cent on a local currency basis with all service lines up, led by investment management and outsourcing and advisory. Consolidated internal revenues measured in local currencies were up 15 per cent versus the prior-year quarter.

For the six months ended June 30, 2022, consolidated revenues increased 27 per cent on a local currency basis. Consolidated internal revenues measured in local currencies were up 21 per cent.

Segmented second quarter results

Revenues in the Americas region totalled $740.7-million for the second quarter, up 27 per cent (28 per cent in local currency) versus $582.8-million in the prior-year quarter. Outsourcing and advisory revenues were up sharply, driven by engineering and design (including recent acquisitions). Capital markets growth was robust, particularly in industrial and land sales, partially offset by a reduction in debt origination activity. Adjusted EBITDA was $101.6-million, up 29 per cent (30 per cent in local currency) over the prior-year quarter and included an $11.7-million gain on the termination of a lease, offset by (i) higher discretionary and variable costs as well as (ii) changes in revenue mix with a reduction in higher-margin debt origination. GAAP operating earnings were $81.1-million, relative to $63.2-million in the prior-year quarter.

Revenues in the EMEA (Europe, Middle East, Africa) region totalled $169.3-million for the second quarter, up 7 per cent (20 per cent in local currency) compared with $158.6-million in the prior-year quarter. Revenue growth was led by outsourcing and advisory (including recent acquisition). Leasing activity was up, however, capital markets revenues were impacted by geopolitical uncertainty in the region. Adjusted EBITDA was $14.4-million, down 30 per cent (21 per cent in local currency) relative to the prior year and was impacted by (i) lower capital markets revenues and (ii) higher discretionary and variable costs. GAAP operating earnings were $4.2-million, versus operating earnings of $14.4-million in the prior-year quarter.

Revenues in the Asia Pacific region totalled $142.6-million for the second quarter compared with $154-million in the prior-year quarter, down 7 per cent (down 1 per cent in local currency). Revenues were impacted by continued COVID-19 lockdowns in several Asian markets which extended until late in the quarter. Adjusted EBITDA was $19.5-million, down 5 per cent (up 2 per cent in local currency) from $20.7-million in the prior-year quarter. GAAP operating earnings were $17.6-million, versus $16.7-million in the prior-year quarter.

Investment management revenues for the second quarter were $75.1-million compared with $50.5-million in the prior-year quarter, up 49 per cent (48 per cent in local currency). Passthrough revenue from historical carried interest represented $1.9-million for the quarter versus nil in the prior-year quarter. Excluding the impact of carried interest, revenue was up 45 per cent (45 per cent in local currency) driven by (i) management fee growth from increased assets under management and (ii) two acquisitions completed during the quarter. Adjusted EBITDA was $29.2-million, up 37 per cent (36 per cent in local currency) over the prior-year quarter. GAAP operating earnings were $19.2-million in the quarter, versus $14.2-million in the prior-year quarter. Assets under management were $68.7-billion as of June 30, 2022, up 54 per cent from $44.5-billion on June 30, 2021. Including Rockwood Capital, completed on July 6, 2022, assets under management are now $81-billion, of which $70-billion are either perpetual or long-dated strategies.

Unallocated global corporate costs as reported in adjusted EBITDA were $3.4-million in the second quarter, relative to $5-million in the prior-year quarter. The corporate GAAP operating loss for the quarter was $18.2-million relative to a loss of $494.3-million in the second quarter of 2021, with the prior-year period impacted by (i) the settlement of the LTIA and (ii) contingent acquisition consideration expense related to acquisitions.

Outlook for 2022

The company is increasing its outlook for full year 2022 to reflect the impact of recent acquisitions and operating results year to date. 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 of war, elections, disruption of supply chains) and related factors.

Conference call

Colliers will be holding a conference call on Wednesday, Aug. 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 on the Colliers website in the events section.

About Colliers International Group Inc.

Colliers is a leading diversified professional services and investment management company. With operations in 63 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 $4.5-billion and $81-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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