Mr. Jay Hennick reports

COLLIERS REPORTS FOURTH QUARTER RESULTS

Colliers International Group Inc. has released its operating and financial results for the fourth quarter and year ended Dec. 31, 2022. All amounts are in United States dollars.

For the quarter ended Dec. 31, 2022, revenues were $1.22-billion, down 9 per cent (5 per cent in local currency), adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $202.7-million, up 6 per cent (9 per cent in local currency), and adjusted EPS (earnings per share) was $2.31, up 3 per cent, versus the prior-year period. Fourth quarter adjusted EPS would have been approximately 10 cents higher excluding foreign exchange impacts. GAAP (generally accepted accounting principles) operating earnings were $103.8-million as compared with $138.4-million. GAAP diluted net earnings per share were 51 cents versus 92 cents in the prior-year quarter. Fourth quarter GAAP diluted EPS would have been approximately 10 cents higher excluding changes in foreign exchange rates.

For the full year ended Dec. 31, 2022, revenues were $4.46-billion, up 9 per cent (13 per cent in local currency), adjusted EBITDA was $630.5-million, up 16 per cent (19 per cent in local currency), and adjusted EPS was $6.99, up 13 per cent, versus the prior-year period. Full-year ended Dec. 31, 2022, adjusted EPS would have been approximately 22 cents higher excluding foreign exchange impacts. The GAAP operating earnings were $332.5-million and included a $26.8-million loss on disposal of operations in Russia. The prior-year GAAP operating loss of $131.5-million included the $471.9-million settlement of the long-term incentive arrangement (LTIA) with the company's chairman and chief executive officer in April, 2021. The GAAP diluted earnings per share were $1.05 as compared with a diluted loss per share of $9.09. Full-year ended Dec. 31, 2022, GAAP diluted EPS would have been approximately 24 cents higher excluding changes in foreign exchange rates.

"During the fourth quarter, investment management, and outsourcing and advisory delivered strong revenue growth while leasing matched the record results from the prior-year period. As expected, interest rate volatility, challenging debt availability and geopolitical issues impacted our capital markets results in our seasonally strongest quarter, and we expect this to continue through the first half of 2023. However, transactions are still being completed and pent-up demand should translate into additional volumes in future quarters as conditions stabilize," said Jay S. Hennick, global chairman and chief executive officer of Colliers.

"Strong full-year performance driven by high-value recurring revenue streams continues to transform Colliers into a different kind of diversified services company. With our globally balanced and highly diversified business model, significant recurring revenue, and proven record of capitalizing on opportunities, Colliers is stronger and more resilient than ever. Earnings from recurring revenues now represent 58 per cent of our pro forma EBITDA, well on the way to our goal of 65 per cent by the end of 2025.

"Throughout 2022, we completed a record $1-billion in acquisitions across our global enterprise. These acquisitions not only strengthen our core, but they also create additional opportunities to drive share value. In investment management, we finished the year with total assets under management of $98-billion, placing Colliers among the top global players in the alternative private capital industry in just six years.

"Colliers has a highly respected global brand and growth platform, well-balanced and highly diversified business model, and an enterprising culture with significant inside ownership. Most importantly, we have a proven track record of delivering about 20-per-cent annual growth in share value to shareholders over the past 28 years, setting us apart from most other growth companies," he concluded.

About Colliers International Group Inc.

Colliers is a leading diversified professional services and investment management company. With operations in 65 countries, its 18,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. For more than 28 years, its experienced leadership with significant inside ownership has delivered compound annual investment returns of approximately 20 per cent for shareholders. With annual revenues of $4.5-billion and $98-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.

Outlook for 2023

For 2023, the company expects robust growth (including the impact of recent acquisitions) in its high-value recurring service lines, investment management, and outsourcing and advisory. Leasing revenues are expected to remain steady. Interest rate driven volatility and continuing geopolitical tensions are expected to continue to impact capital markets activity, particularly during the first half of 2023 and moderate through the second half. The company expects higher adjusted EBITDA margins in 2023, primarily due to the change in business mix (greater proportion of adjusted EBITDA coming from high-margin investment management) as well as cost-control measures applied across the company. Adjusted EPS growth is expected to be impacted by increased interest costs as well as a larger proportion of earnings growth generated from non-wholly owned operations.

The outlook for 2023, including the full-year impact of acquisitions completed during 2022, is as shown in the associated table.

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 and related factors.

Conference call

Colliers will be holding a conference call on Thursday, Feb. 9, 2023, at 11 a.m. ET 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.

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