Colliers International Group Inc. (NASDAQ and TSX: CIGI)
(“Colliers” or the “Company”) today announced operating and
financial results for the third quarter ended September 30, 2024.
All amounts are in US dollars.
For the third quarter ended September 30, 2024,
revenues were $1.18 billion, up 12% (11% in local currency) and
Adjusted EBITDA (note 1) was $154.6 million, up 7% (6% in local
currency) versus the prior year quarter. Adjusted EPS (note 2) was
$1.32, up 11% from $1.19 in the prior year quarter. Third quarter
adjusted EPS would have been approximately $0.01 lower excluding
foreign exchange impacts. The GAAP operating earnings were $109.7
million as compared to $70.9 million in the prior year quarter. The
GAAP diluted net earnings per share were $0.73, up 38% from $0.53
in the prior year quarter. The third quarter GAAP diluted net
earnings per share EPS would have been approximately $0.01 lower
excluding foreign exchange impacts.
For the nine months ended September 30, 2024,
revenues were $3.32 billion, up 7% (7% in local currency) and
adjusted EBITDA (note 1) was $419.0 million, up 6% (6% in local
currency) versus the prior year period. Adjusted EPS (note 2) was
$3.46, relative to $3.36 in the prior year period. Adjusted EPS
were not significantly impacted by changes in foreign exchange
rates. The GAAP operating earnings were $267.8 million compared to
$168.3 million in the prior year period, favourably impacted by the
reversal of contingent consideration expense related to an
acquisition. The GAAP diluted net earnings per share were $1.73
compared to a diluted net loss per share of $0.04 in the prior year
period. The GAAP diluted net earnings per share were not
significantly impacted by changes in foreign exchange rates.
As previously announced, this quarter, Colliers
re-aligned its operating segments to better reflect the value and
growth potential of its three complementary engines – Real Estate
Services, Engineering, and Investment Management. The Real Estate
Services segment encompasses the former Americas, EMEA, and Asia
Pacific regions, excluding engineering and project management,
which are now reported within the new Engineering segment. The
Investment Management segment remains unchanged. Comparative
periods have been recast to reflect this revised segmentation.
“This quarter, Colliers delivered solid growth
across all three segments,” said Jay S. Hennick, Chairman & CEO
of Colliers. “Engineering grew by 21%, driven by strategic
acquisitions. In Real Estate Services, Capital Markets revenues
rose a strong 17%, exceeding expectations. Investment Management
revenue, excluding pass-through performance fees, was up slightly
though fundraising remained below expectations. AUM was up $2.4
billion during the quarter reaching $98.8 billion, up from $96.4
billion on June 30, 2024.”
“We completed the acquisition of Englobe during
the quarter, creating a substantial new growth platform in Canada.
After the quarter, we further added GWAL in Canada, and Pritchard
Francis and TTM in Australia. With a robust M&A pipeline, we
are well positioned to continue growing and strengthening our
operations for the long-term.”
“Over the past decade, step by step, Colliers
has transformed into a uniquely differentiated global professional
services and investment management firm. We have relentlessly
focused on expanding and diversifying our global operations, while
adding new growth engines that deliver recurring revenue streams.
Today, these recurring revenues contribute over 70% of our
earnings, bringing unprecedented balance, resilience and
predictability – all of which drive greater shareholder value.”
“With experienced leadership, significant inside
ownership, and a proven 30-year track record of delivering 20%
annualized returns, we are well positioned to sustain mid-to
high-single digit growth going forward. As we enter 2025, we
anticipate additional upside from an improving capital markets
environment, expanded investment strategies and capital raising
opportunities in Investment Management and continued incremental
growth through acquisitions across all three segments,” he
concluded.
About ColliersColliers (NASDAQ,
TSX: CIGI) is a leading global diversified professional services
company, specializing in commercial real estate services,
engineering consultancy and investment management. With operations
in 70 countries, our 22,000 enterprising professionals provide
exceptional service and expert advice to clients. For nearly 30
years, our experienced leadership – with substantial inside
ownership – has consistently delivered approximately 20% compound
annual investment returns for shareholders. With annual revenues
exceeding $4.5 billion and $99 billion of assets under management,
Colliers maximizes the potential of property, infrastructure and
real assets to accelerate the success of our clients, investors and
people. Learn more at corporate.colliers.com, X @Colliers or
LinkedIn.
Consolidated Revenues by Line of
Service
| |
|
|
Three months ended |
Change |
Change |
|
Nine months ended |
Change |
Change |
| (in thousands of
US$) |
|
|
September 30 |
in US$ % |
in LC% |
|
September 30 |
in US$ % |
in LC% |
|
(LC = local currency) |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investment
Management (1) |
|
$ |
127,405 |
|
|
118,717 |
7 |
% |
7 |
% |
|
$ |
375,977 |
|
$ |
358,323 |
5 |
% |
5 |
% |
| Engineering |
|
$ |
316,624 |
|
|
259,925 |
22 |
% |
21 |
% |
|
$ |
816,023 |
|
$ |
727,995 |
12 |
% |
11 |
% |
| Leasing |
|
|
266,282 |
|
|
249,647 |
7 |
% |
6 |
% |
|
|
798,119 |
|
|
744,649 |
7 |
% |
7 |
% |
| Capital
Markets |
|
|
188,196 |
|
|
160,293 |
17 |
% |
17 |
% |
|
|
509,594 |
|
|
495,049 |
3 |
% |
3 |
% |
| Outsourcing |
|
|
280,454 |
|
$ |
267,338 |
5 |
% |
5 |
% |
|
|
820,369 |
|
|
773,590 |
6 |
% |
6 |
% |
| Real Estate Services |
|
|
$ |
734,932 |
|
|
677,278 |
9 |
% |
8 |
% |
|
$ |
2,128,082 |
|
$ |
2,013,288 |
6 |
% |
6 |
% |
| Corporate |
|
|
|
98 |
|
|
112 |
NM |
NM |
|
|
325 |
|
|
367 |
NM |
NM |
| Total
revenues |
|
|
$ |
1,179,059 |
|
$ |
1,056,032 |
12 |
% |
11 |
% |
|
$ |
3,320,407 |
|
$ |
3,099,973 |
7 |
% |
7 |
% |
| (1) Investment
Management local currency revenues, excluding pass-through
performance fees (carried interest), were up 1% and 3% for the
three and nine-month periods ended September 30, 2024,
respectively. |
Third quarter consolidated revenues were up 11%
on a local currency basis driven by robust growth across all
service lines, particularly Engineering and Capital Markets.
Consolidated internal revenue growth measured in local currencies
was 5% (note 4) versus the prior year quarter.
For the nine months ended September 30, 2024,
consolidated revenues increased 7% on a local currency basis, led
by Engineering. Consolidated internal revenues measured in local
currencies were up 4% (note 4).
Segmented Third Quarter
ResultsReal Estate Services revenues totalled $734.9
million, up 9% (8% in local currency) versus $677.3 million in the
prior year quarter on growth across all services lines, as
expected. Capital Markets transaction volumes were up meaningfully
against a low base in the prior year, particularly in the Americas
and Asia Pacific. Leasing continued to build on last quarter’s
momentum, notably in EMEA and the US with several large office
leasing transactions during the quarter. Adjusted EBITDA was $64.7
million, up 8% (7% in local currency) compared to $59.7 million in
the prior year quarter, with continued aggressive investment in
recruiting in strategic markets. The GAAP operating earnings were
$42.4 million, relative to $40.8 million in the prior year
quarter.
Engineering revenues totalled $316.6 million, up
22% (21% in local currency) compared to $259.9 million in the prior
year quarter. Revenue growth was primarily driven by the recent
acquisition of Englobe. Adjusted EBITDA was $39.8 million, up 23%
(24% in local currency) compared to $32.3 million in the prior year
quarter. The GAAP operating earnings were $19.7 million relative to
$20.0 million in the prior year quarter and were primarily impacted
by higher intangible asset amortization expense related to recent
acquisitions.
Investment Management revenues were $127.4
million, relative to $118.7 million in the prior year quarter, up
7% (7% in local currency) including historical pass-through
performance fees of $7.8 million relative to $0.6 million in the
prior year quarter. Excluding performance fees, revenue was up 1%
(1% in local currency) driven by new investor capital commitments,
which were lower than expected – a trend anticipated to continue
through year-end. Adjusted EBITDA was $56.0 million, up 1% (1% in
local currency) compared to the prior year quarter with continued
investments in new products and strategies as well as additional
investments to scale fundraising efforts. The GAAP operating
earnings were $67.2 million in the quarter versus $20.4 million in
the prior year quarter, with the variance largely attributable to
the reversal of contingent consideration expense related to a
fundraising condition in a recent acquisition. AUM was up $2.4
billion during the quarter to $98.8 billion from $96.4 billion as
of June 30, 2024.
Unallocated global corporate costs as reported
in Adjusted EBITDA were $5.9 million in the third quarter relative
to $2.3 million in the prior year quarter, primarily from
additional claim reserves taken in the Company’s captive insurance
operation. The corporate GAAP operating loss for the quarter was
$19.6 million compared to $10.3 million in the prior year
quarter.
Outlook for 2024The Company has
revised its 2024 outlook to reflect year-to-date results and
updated fundraising expectations in its high-margin Investment
Management segment for the remainder of the year.
|
|
|
2024 Outlook |
|
Measure |
Actual 2023 |
Prior |
Revised |
|
Revenue growth |
-3% |
+8% to +13% |
+8% to +13% |
|
Adjusted EBITDA growth |
-6% |
+8% to +18% |
+8% to +12% |
|
Adjusted EPS growth |
-23% |
+11% to +21% |
+6% to +12% |
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 numerous macroeconomic,
geopolitical, health, social and related factors. Continued
interest rate volatility and/or lack of credit availability for
commercial real estate transactions could materially impact the
outlook.
Conference CallColliers will be
holding a conference call on Tuesday, November 5, 2024 at 11:00
a.m. Eastern Time to discuss the quarter’s results. The call, as
well as a supplemental slide presentation, will be simultaneously
web cast and can be accessed live or after the call at
corporate.colliers.com in the Events section.
Forward-looking StatementsThis
press release includes or may include forward-looking statements.
Forward-looking statements include the Company’s financial
performance outlook and statements regarding goals, beliefs,
strategies, objectives, plans or current expectations. These
statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results to be materially
different from any future results, performance or achievements
contemplated in the forward-looking statements. Such factors
include: economic conditions, especially as they relate to
commercial and consumer credit conditions and consumer spending,
particularly in regions where the business may be concentrated;
commercial real estate and real asset values, vacancy rates and
general conditions of financial liquidity for real estate
transactions; trends in pricing and risk assumption for commercial
real estate services; the effect of significant movements in
capitalization rates across different asset types; a reduction by
companies in their reliance on outsourcing for their commercial
real estate needs, which would affect revenues and operating
performance; competition in the markets served by the Company; the
ability to attract new clients and to retain clients and renew
related contracts; the ability to attract new capital commitments
to Investment Management funds and retain existing capital under
management; the ability to retain and incentivize employees;
increases in wage and benefit costs; the effects of changes in
interest rates on the cost of borrowing; unexpected increases in
operating costs, such as insurance, workers’ compensation and
health care; changes in the frequency or severity of insurance
incidents relative to historical experience; the effects of changes
in foreign exchange rates in relation to the US dollar on the
Company’s Canadian dollar, Euro, Australian dollar and UK pound
sterling denominated revenues and expenses; the impact of pandemics
on client demand for the Company’s services, the ability of the
Company to deliver its services and the health and productivity of
its employees; the impact of global climate change; the impact of
political events including elections, referenda, trade policy
changes, immigration policy changes, hostilities, war and terrorism
on the Company’s operations; the ability to identify and make
acquisitions at reasonable prices and successfully integrate
acquired operations; the ability to execute on, and adapt to,
information technology strategies and trends; the ability to comply
with laws and regulations, including real estate investment
management and mortgage banking licensure, labour and employment
laws and regulations, as well as the anti-corruption laws and trade
sanctions; and changes in government laws and policies at the
federal, state/provincial or local level that may adversely impact
the business.
Additional information and risk factors
identified in the Company’s other periodic filings with Canadian
and US securities regulators are adopted herein and a copy of which
can be obtained at www.sedarplus.ca. Forward looking statements
contained in this press release are made as of the date hereof and
are subject to change. All forward-looking statements in this press
release are qualified by these cautionary statements. Except as
required by applicable law, Colliers undertakes no obligation to
publicly update or revise any forward-looking statement, whether as
a result of new information, future events or otherwise.
Summary financial information is provided in
this press release. This press release should be read in
conjunction with the Company's consolidated financial statements
and MD&A to be made available on SEDAR+ at
www.sedarplus.ca.
This press release does not constitute an offer
to sell or a solicitation of an offer to purchase an interest in
any fund.
NotesNon-GAAP
Measures1. Reconciliation of net earnings to Adjusted
EBITDA
Adjusted EBITDA is defined as net earnings,
adjusted to exclude: (i) income tax; (ii) other income; (iii)
interest expense; (iv) loss on disposal of operations; (v)
depreciation and amortization, including amortization of mortgage
servicing rights (“MSRs”); (vi) gains attributable to MSRs; (vii)
acquisition-related items (including contingent acquisition
consideration fair value adjustments, contingent acquisition
consideration-related compensation expense and transaction costs);
(viii) restructuring costs and (ix) stock-based compensation
expense. We use Adjusted EBITDA to evaluate our own operating
performance and our ability to service debt, as well as an integral
part of our planning and reporting systems. Additionally, we use
this measure in conjunction with discounted cash flow models to
determine the Company’s overall enterprise valuation and to
evaluate acquisition targets. We present Adjusted EBITDA as a
supplemental measure because we believe such measure is useful to
investors as a reasonable indicator of operating performance
because of the low capital intensity of the Company’s service
operations. We believe this measure is a financial metric used by
many investors to compare companies, especially in the services
industry. This measure is not a recognized measure of financial
performance under GAAP in the United States, and should not be
considered as a substitute for operating earnings, net earnings or
cash flow from operating activities, as determined in accordance
with GAAP. Our method of calculating Adjusted EBITDA may differ
from other issuers and accordingly, this measure may not be
comparable to measures used by other issuers. A reconciliation of
net earnings to Adjusted EBITDA appears below.
| |
|
Three months ended |
|
Nine months ended |
| |
September 30 |
|
September 30 |
|
(in thousands of US$) |
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
$ |
69,377 |
|
|
$ |
29,376 |
|
|
$ |
155,440 |
|
|
$ |
63,470 |
|
| Income tax |
|
21,131 |
|
|
|
18,096 |
|
|
|
55,478 |
|
|
|
38,112 |
|
| Other income,
including equity earnings from non-consolidated investments |
|
(4,121 |
) |
|
|
(801 |
) |
|
|
(5,704 |
) |
|
|
(5,007 |
) |
| Interest expense,
net |
|
23,350 |
|
|
|
24,228 |
|
|
|
62,598 |
|
|
|
71,730 |
|
| Operating
earnings |
|
109,737 |
|
|
|
70,899 |
|
|
|
267,812 |
|
|
|
168,305 |
|
| Loss on disposal
of operations |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,282 |
|
| Depreciation and
amortization |
|
56,073 |
|
|
|
51,163 |
|
|
|
156,426 |
|
|
|
151,449 |
|
| Gains attributable
to MSRs |
|
(6,151 |
) |
|
|
(3,199 |
) |
|
|
(11,178 |
) |
|
|
(12,286 |
) |
| Equity earnings
from non-consolidated investments |
|
4,008 |
|
|
|
685 |
|
|
|
5,240 |
|
|
|
4,371 |
|
|
Acquisition-related items |
|
(20,931 |
) |
|
|
15,366 |
|
|
|
(34,212 |
) |
|
|
53,502 |
|
| Restructuring
costs |
|
5,087 |
|
|
|
4,485 |
|
|
|
13,920 |
|
|
|
12,266 |
|
| Stock-based
compensation expense |
|
6,813 |
|
|
|
5,513 |
|
|
|
20,947 |
|
|
|
16,726 |
|
|
Adjusted EBITDA |
$ |
154,636 |
|
|
$ |
144,912 |
|
|
$ |
418,955 |
|
|
$ |
396,615 |
|
2. Reconciliation of net earnings and diluted
net earnings per common share to adjusted net earnings and Adjusted
EPS
Adjusted EPS is defined as diluted net earnings
per share adjusted for the effect, after income tax, of: (i) the
non-controlling interest redemption increment; (ii) loss on
disposal of operations; (iii) amortization expense related to
intangible assets recognized in connection with acquisitions and
MSRs; (iv) gains attributable to MSRs; (v) acquisition-related
items; (vi) restructuring costs and (vii) stock-based compensation
expense. We believe this measure is useful to investors because it
provides a supplemental way to understand the underlying operating
performance of the Company and enhances the comparability of
operating results from period to period. Adjusted EPS is not a
recognized measure of financial performance under GAAP, and should
not be considered as a substitute for diluted net earnings per
share from continuing operations, as determined in accordance with
GAAP. Our method of calculating this non-GAAP measure may differ
from other issuers and, accordingly, this measure may not be
comparable to measures used by other issuers. A reconciliation of
net earnings to adjusted net earnings and of diluted net earnings
per share to adjusted EPS appears below.
Similar to GAAP diluted EPS, Adjusted EPS is
calculated using the “if-converted” method of calculating earnings
per share in relation to the Convertible Notes, which were fully
converted or redeemed by June 1, 2023. As such, the interest (net
of tax) on the Convertible Notes is added to the numerator and the
additional shares issuable on conversion of the Convertible Notes
are added to the denominator of the earnings per share calculation
to determine if an assumed conversion is more dilutive than no
assumption of conversion. The “if-converted” method is used if the
impact of the assumed conversion is dilutive. The “if-converted”
method is dilutive for the Adjusted EPS calculation for all periods
where the Convertible Notes were outstanding.
| |
|
Three months ended |
|
Nine months ended |
| |
September 30 |
|
September 30 |
|
(in thousands of US$) |
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
$ |
69,377 |
|
|
$ |
29,376 |
|
|
$ |
155,440 |
|
|
$ |
63,470 |
|
| Non-controlling
interest share of earnings |
|
(14,929 |
) |
|
|
(14,210 |
) |
|
|
(35,074 |
) |
|
|
(38,967 |
) |
| Interest on
Convertible Notes |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,861 |
|
| Loss on disposal
of operations |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,282 |
|
| Amortization of
intangible assets |
|
38,226 |
|
|
|
37,486 |
|
|
|
107,697 |
|
|
|
111,659 |
|
| Gains attributable
to MSRs |
|
(6,151 |
) |
|
|
(3,199 |
) |
|
|
(11,178 |
) |
|
|
(12,286 |
) |
|
Acquisition-related items |
|
(20,931 |
) |
|
|
15,366 |
|
|
|
(34,212 |
) |
|
|
53,502 |
|
| Restructuring
costs |
|
5,087 |
|
|
|
4,485 |
|
|
|
13,920 |
|
|
|
12,266 |
|
| Stock-based
compensation expense |
|
6,813 |
|
|
|
5,513 |
|
|
|
20,947 |
|
|
|
16,726 |
|
| Income tax on
adjustments |
|
(5,383 |
) |
|
|
(11,853 |
) |
|
|
(26,116 |
) |
|
|
(35,046 |
) |
| Non-controlling
interest on adjustments |
|
(5,060 |
) |
|
|
(6,207 |
) |
|
|
(18,331 |
) |
|
|
(17,133 |
) |
|
Adjusted net earnings |
$ |
67,049 |
|
|
$ |
56,757 |
|
|
$ |
173,093 |
|
|
$ |
159,334 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three months ended |
|
Nine months ended |
| |
September 30 |
|
September 30 |
|
(in US$) |
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted
net earnings (loss) per common
share(1) |
$ |
0.73 |
|
|
$ |
0.53 |
|
|
$ |
1.73 |
|
|
$ |
(0.04 |
) |
| Interest on
Convertible Notes, net of tax |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
0.04 |
|
| Non-controlling
interest redemption increment |
|
0.34 |
|
|
|
(0.21 |
) |
|
|
0.68 |
|
|
|
0.56 |
|
| Loss on disposal
of operations |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
0.05 |
|
| Amortization
expense, net of tax |
|
0.59 |
|
|
|
0.49 |
|
|
|
1.48 |
|
|
|
1.45 |
|
| Gains attributable
to MSRs, net of tax |
|
(0.07 |
) |
|
|
(0.04 |
) |
|
|
(0.13 |
) |
|
|
(0.15 |
) |
|
Acquisition-related items |
|
(0.45 |
) |
|
|
0.26 |
|
|
|
(0.84 |
) |
|
|
0.97 |
|
| Restructuring
costs, net of tax |
|
0.08 |
|
|
|
0.07 |
|
|
|
0.21 |
|
|
|
0.19 |
|
| Stock-based
compensation expense, net of tax |
|
0.10 |
|
|
|
0.09 |
|
|
|
0.33 |
|
|
|
0.29 |
|
| Adjusted
EPS |
$ |
1.32 |
|
|
$ |
1.19 |
|
|
$ |
3.46 |
|
|
$ |
3.36 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted
weighted average shares for Adjusted EPS (thousands) |
|
50,797 |
|
|
|
47,549 |
|
|
|
50,054 |
|
|
|
47,480 |
|
| (1) Amounts shown
reflect the "if-converted" method's dilutive impact on the adjusted
EPS calculation. |
| |
3. Reconciliation of net cash flow from
operations to free cash flow
Free cash flow is defined as net cash flow from
operating activities plus contingent acquisition consideration
paid, less purchases of fixed assets, plus cash collections on AR
Facility deferred purchase price less distributions to
non-controlling interests. We use free cash flow as a measure to
evaluate and monitor operating performance as well as our ability
to service debt, fund acquisitions and pay dividends to
shareholders. We present free cash flow as a supplemental measure
because we believe this measure is a financial metric used by many
investors to compare valuation and liquidity measures across
companies, especially in the services industry. This measure is not
a recognized measure of financial performance under GAAP in the
United States, and should not be considered as a substitute for
operating earnings, net earnings or cash flow from operating
activities, as determined in accordance with GAAP. Our method of
calculating free cash flow may differ from other issuers and
accordingly, this measure may not be comparable to measures used by
other issuers. A reconciliation of net cash flow from operating
activities to free cash flow appears below.
| |
|
Three months ended |
|
Nine months ended |
| |
September 30 |
|
September 30 |
|
(in thousands of US$) |
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
$ |
107,128 |
|
|
$ |
42,153 |
|
|
$ |
110,702 |
|
|
$ |
8,558 |
|
| Contingent
acquisition consideration paid |
|
69 |
|
|
|
35,655 |
|
|
|
3,107 |
|
|
|
38,646 |
|
| Purchase of fixed
assets |
|
(16,158 |
) |
|
|
(19,349 |
) |
|
|
(45,511 |
) |
|
|
(60,411 |
) |
| Cash collections
on AR Facility deferred purchase price |
|
32,957 |
|
|
|
31,896 |
|
|
|
101,805 |
|
|
|
91,207 |
|
| Distributions paid
to non-controlling interests |
|
(17,475 |
) |
|
|
(16,702 |
) |
|
|
(66,302 |
) |
|
|
(67,822 |
) |
|
Free cash flow |
$ |
106,521 |
|
|
$ |
73,653 |
|
|
$ |
103,801 |
|
|
$ |
10,178 |
|
4. Local currency revenue and Adjusted EBITDA
growth rate and internal revenue growth rate measures
Percentage revenue and Adjusted EBITDA variances
presented on a local currency basis are calculated by translating
the current period results of our non-US dollar denominated
operations to US dollars using the foreign currency exchange rates
from the periods against which the current period results are being
compared. Percentage revenue variances presented on an internal
growth basis are calculated assuming no impact from acquired
entities in the current and prior periods. Revenue from acquired
entities, including any foreign exchange impacts, are treated as
acquisition growth until the respective anniversaries of the
acquisitions. We believe that these revenue growth rate
methodologies provide a framework for assessing the Company’s
performance and operations excluding the effects of foreign
currency exchange rate fluctuations and acquisitions. Since these
revenue growth rate measures are not calculated under GAAP, they
may not be comparable to similar measures used by other
issuers.
5. Assets under management
We use the term assets under management (“AUM”)
as a measure of the scale of our Investment Management operations.
AUM is defined as the gross market value of operating assets and
the projected gross cost of development assets of the funds,
partnerships and accounts to which we provide management and
advisory services, including capital that such funds, partnerships
and accounts have the right to call from investors pursuant to
capital commitments. Our definition of AUM may differ from those
used by other issuers and as such may not be directly comparable to
similar measures used by other issuers.
6. Adjusted EBITDA from recurring revenue
percentage
Adjusted EBITDA from recurring revenue
percentage is computed on a trailing twelve-month basis and
represents the proportion of Adjusted EBITDA (note 1) that is
derived from Engineering, Outsourcing and Investment Management
service lines. All these service lines represent medium to
long-term duration revenue streams that are either contractual or
repeatable in nature. Adjusted EBITDA for this purpose is
calculated in the same manner as for our debt agreement covenant
calculation purposes, incorporating the expected full year impact
of business acquisitions and dispositions.
| Colliers
International Group Inc. |
| Condensed
Consolidated Statements of Earnings (Loss) |
| (in thousands of
US$, except per share amounts) |
| |
|
|
Three months |
|
|
Nine months |
| |
|
|
ended September 30 |
|
|
ended September 30 |
|
(unaudited) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Revenues |
|
$ |
1,179,059 |
|
|
$ |
1,056,032 |
|
|
$ |
3,320,407 |
|
|
$ |
3,099,973 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of revenues |
|
|
712,044 |
|
|
|
638,659 |
|
|
|
2,005,351 |
|
|
|
1,865,569 |
|
| Selling, general and
administrative expenses |
|
|
322,136 |
|
|
|
279,945 |
|
|
|
925,030 |
|
|
|
858,866 |
|
| Depreciation |
|
|
17,847 |
|
|
|
13,677 |
|
|
|
48,729 |
|
|
|
39,790 |
|
| Amortization of intangible
assets |
|
|
38,226 |
|
|
|
37,486 |
|
|
|
107,697 |
|
|
|
111,659 |
|
| Acquisition-related items
(1) |
|
|
(20,931 |
) |
|
|
15,366 |
|
|
|
(34,212 |
) |
|
|
53,502 |
|
| Loss on disposal of
operations |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,282 |
|
| Operating
earnings |
|
|
109,737 |
|
|
|
70,899 |
|
|
|
267,812 |
|
|
|
168,305 |
|
| Interest expense, net |
|
|
23,350 |
|
|
|
24,228 |
|
|
|
62,598 |
|
|
|
71,730 |
|
| Equity earnings from
non-consolidated investments |
|
|
(4,008 |
) |
|
|
(685 |
) |
|
|
(5,240 |
) |
|
|
(4,371 |
) |
| Other income |
|
|
(113 |
) |
|
|
(116 |
) |
|
|
(464 |
) |
|
|
(636 |
) |
| Earnings before income
tax |
|
|
90,508 |
|
|
|
47,472 |
|
|
|
210,918 |
|
|
|
101,582 |
|
| Income tax |
|
|
21,131 |
|
|
|
18,096 |
|
|
|
55,478 |
|
|
|
38,112 |
|
| Net
earnings |
|
|
69,377 |
|
|
|
29,376 |
|
|
|
155,440 |
|
|
|
63,470 |
|
| Non-controlling interest share
of earnings |
|
|
14,929 |
|
|
|
14,210 |
|
|
|
35,074 |
|
|
|
38,967 |
|
| Non-controlling interest
redemption increment |
|
|
17,221 |
|
|
|
(9,947 |
) |
|
|
33,758 |
|
|
|
26,393 |
|
| Net earnings (loss)
attributable to Company |
|
$ |
37,227 |
|
|
$ |
25,113 |
|
|
$ |
86,608 |
|
|
$ |
(1,890 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net earnings (loss)
per common share |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.74 |
|
|
$ |
0.53 |
|
|
$ |
1.74 |
|
|
$ |
(0.04 |
) |
|
Diluted (2) |
|
$ |
0.73 |
|
|
$ |
0.53 |
|
|
$ |
1.73 |
|
|
$ |
(0.04 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EPS
(3) |
|
$ |
1.32 |
|
|
$ |
1.19 |
|
|
$ |
3.46 |
|
|
$ |
3.36 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average common shares
(thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
50,320 |
|
|
|
47,206 |
|
|
|
49,692 |
|
|
|
45,122 |
|
|
Diluted |
|
|
50,797 |
|
|
|
47,549 |
|
|
|
50,054 |
|
|
|
45,504 |
|
Notes to Condensed Consolidated
Statements of
Earnings(1) Acquisition-related items
include contingent acquisition consideration fair value
adjustments, contingent acquisition consideration-related
compensation expense and transaction
costs.(2) Diluted EPS is calculated using the
“if-converted” method of calculating earnings per share in relation
to the Convertible Notes, which were fully converted or redeemed by
June 1, 2023. As such, the interest (net of tax) on the Convertible
Notes is added to the numerator and the additional shares issuable
on conversion of the Convertible Notes are added to the denominator
of the earnings per share calculation to determine if an assumed
conversion is more dilutive than no assumption of conversion. The
“if-converted” method is used if the impact of the assumed
conversion is dilutive. The “if-converted” method was dilutive for
the three months ended September 30, 2023 and anti-dilutive for the
nine months ended September 30, 2023.(3) See
definition and reconciliation above.
| Colliers
International Group Inc. |
|
|
|
|
|
|
|
|
| Condensed
Consolidated Balance Sheets |
|
|
|
|
|
|
|
|
| (in thousands of
US$) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
September 30, |
|
December 31, |
|
September 30, |
|
(unaudited) |
2024 |
|
2023 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
| Cash and cash
equivalents |
$ |
156,984 |
|
$ |
181,134 |
|
$ |
168,600 |
| Restricted cash
(1) |
|
88,274 |
|
|
37,941 |
|
|
69,991 |
| Accounts
receivable and contract assets |
|
884,984 |
|
|
726,764 |
|
|
688,306 |
| Mortgage warehouse
receivables (2) |
|
135,915 |
|
|
177,104 |
|
|
54,957 |
| Prepaids and other
assets |
|
355,575 |
|
|
306,829 |
|
|
294,631 |
| Warehouse fund
assets |
|
108,781 |
|
|
44,492 |
|
|
42,081 |
| |
Current
assets |
|
1,730,513 |
|
|
1,474,264 |
|
|
1,318,566 |
| Other non-current
assets |
|
219,950 |
|
|
188,745 |
|
|
196,669 |
| Warehouse fund
assets |
|
52,564 |
|
|
47,536 |
|
|
- |
| Fixed assets |
|
230,434 |
|
|
202,837 |
|
|
186,346 |
| Operating lease
right-of-use assets |
|
394,478 |
|
|
390,565 |
|
|
361,408 |
| Deferred tax
assets, net |
|
69,816 |
|
|
59,468 |
|
|
62,781 |
| Goodwill and
intangible assets |
|
3,541,615 |
|
|
3,118,711 |
|
|
3,114,120 |
| |
Total
assets |
$ |
6,239,370 |
|
$ |
5,482,126 |
|
$ |
5,239,890 |
| |
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity |
|
|
|
|
|
|
|
|
| Accounts payable
and accrued liabilities |
$ |
1,072,472 |
|
$ |
1,104,935 |
|
$ |
1,009,426 |
| Other current
liabilities |
|
112,411 |
|
|
75,764 |
|
|
88,221 |
| Long-term debt -
current |
|
15,683 |
|
|
1,796 |
|
|
3,976 |
| Mortgage warehouse
credit facilities (2) |
|
128,944 |
|
|
168,780 |
|
|
48,309 |
| Operating lease
liabilities - current |
|
92,699 |
|
|
89,938 |
|
|
88,568 |
| Liabilities
related to warehouse fund assets |
|
57,554 |
|
|
- |
|
|
- |
| |
Current
liabilities |
|
1,479,763 |
|
|
1,441,213 |
|
|
1,238,500 |
| Long-term debt -
non-current |
|
1,788,686 |
|
|
1,500,843 |
|
|
1,638,650 |
| Operating lease
liabilities - non-current |
|
379,457 |
|
|
375,454 |
|
|
343,790 |
| Other
liabilities |
|
131,378 |
|
|
151,333 |
|
|
151,650 |
| Deferred tax
liabilities, net |
|
82,440 |
|
|
43,191 |
|
|
40,334 |
| Liabilities
related to warehouse fund assets |
|
- |
|
|
47,536 |
|
|
- |
| Redeemable
non-controlling interests |
|
1,122,084 |
|
|
1,072,066 |
|
|
1,073,379 |
| Shareholders'
equity |
|
1,255,562 |
|
|
850,490 |
|
|
753,587 |
|
|
Total liabilities and equity |
$ |
6,239,370 |
|
$ |
5,482,126 |
|
$ |
5,239,890 |
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental balance sheet information |
|
|
|
|
|
|
|
|
| Total debt
(3) |
$ |
1,804,369 |
|
$ |
1,502,639 |
|
$ |
1,642,626 |
| Total debt, net of
cash and cash equivalents (3) |
|
1,647,385 |
|
|
1,321,505 |
|
|
1,474,026 |
| Net debt / pro
forma adjusted EBITDA ratio (4) |
|
2.5 |
|
|
2.2 |
|
|
2.4 |
Notes to Condensed Consolidated Balance
Sheets
(1) Restricted cash consists
primarily of cash amounts set aside to satisfy legal or contractual
requirements arising in the normal course of
business.(2) Mortgage warehouse receivables
represent mortgage loans receivable, the majority of which are
offset by borrowings under mortgage warehouse credit facilities
which fund loans that financial institutions have committed to
purchase.(3) Excluding mortgage warehouse credit
facilities.(4) Net debt for financial leverage
ratio excludes restricted cash and mortgage warehouse credit
facilities, in accordance with debt agreements.
| Colliers
International Group Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
| Condensed
Consolidated Statements of Cash Flows |
|
|
|
|
|
|
|
| (in thousands of
US$) |
| |
|
|
|
Three months ended |
|
|
Nine months ended |
| |
|
|
|
September 30 |
|
|
September 30 |
|
(unaudited) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash
provided by (used in) |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating
activities |
|
|
|
|
|
|
|
|
|
|
|
|
| Net earnings |
|
$ |
69,377 |
|
|
$ |
29,376 |
|
|
$ |
155,440 |
|
|
$ |
63,470 |
|
| Items not
affecting cash: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
56,073 |
|
|
|
51,163 |
|
|
|
156,426 |
|
|
|
151,449 |
|
| |
Loss on disposal of
operations |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,282 |
|
| |
Gains attributable to mortgage
servicing rights |
|
|
(6,151 |
) |
|
|
(3,199 |
) |
|
|
(11,178 |
) |
|
|
(12,286 |
) |
| |
Gains attributable to the fair
value of loan premiums and origination fees |
|
|
(3,601 |
) |
|
|
(2,887 |
) |
|
|
(9,224 |
) |
|
|
(10,913 |
) |
| |
Deferred income tax |
|
|
(6,528 |
) |
|
|
1,458 |
|
|
|
(13,923 |
) |
|
|
(20,446 |
) |
| |
Other |
|
|
(14,672 |
) |
|
|
28,555 |
|
|
|
476 |
|
|
|
95,076 |
|
| |
|
|
|
94,498 |
|
|
|
104,466 |
|
|
|
278,017 |
|
|
|
268,632 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Increase in
accounts receivable, prepaid |
|
|
|
|
|
|
|
|
|
|
|
|
| |
expenses and other assets |
|
|
(69,942 |
) |
|
|
(76,551 |
) |
|
|
(164,231 |
) |
|
|
(133,276 |
) |
| Increase
(decrease) in accounts payable, accrued |
|
|
|
|
|
|
|
|
|
|
|
|
| |
expenses and other
liabilities |
|
|
41,027 |
|
|
|
(6,539 |
) |
|
|
38,125 |
|
|
|
(6,082 |
) |
| Increase
(decrease) in accrued compensation |
|
|
38,569 |
|
|
|
28,442 |
|
|
|
(48,449 |
) |
|
|
(125,188 |
) |
| Contingent
acquisition consideration paid |
|
|
(69 |
) |
|
|
(35,655 |
) |
|
|
(3,107 |
) |
|
|
(38,646 |
) |
| Mortgage
origination activities, net |
|
|
3,591 |
|
|
|
4,964 |
|
|
|
10,783 |
|
|
|
14,034 |
|
| Sales to AR
Facility, net |
|
|
(546 |
) |
|
|
23,026 |
|
|
|
(436 |
) |
|
|
29,084 |
|
| Net cash provided
by operating activities |
|
|
107,128 |
|
|
|
42,153 |
|
|
|
110,702 |
|
|
|
8,558 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investing
activities |
|
|
|
|
|
|
|
|
|
|
|
|
| Acquisition of
businesses, net of cash acquired |
|
|
(454,638 |
) |
|
|
(1,597 |
) |
|
|
(472,410 |
) |
|
|
(61,295 |
) |
| Purchases of fixed
assets |
|
|
(16,158 |
) |
|
|
(19,349 |
) |
|
|
(45,511 |
) |
|
|
(60,411 |
) |
| Purchases of
warehouse fund assets |
|
|
(15,676 |
) |
|
|
(8,989 |
) |
|
|
(273,019 |
) |
|
|
(49,565 |
) |
| Proceeds from
disposal of warehouse fund assets |
|
|
- |
|
|
|
6,369 |
|
|
|
76,438 |
|
|
|
50,369 |
|
| Cash collections
on AR Facility deferred purchase price |
|
|
32,957 |
|
|
|
31,896 |
|
|
|
101,805 |
|
|
|
91,207 |
|
| Other investing
activities |
|
|
(43,518 |
) |
|
|
(18,253 |
) |
|
|
(101,651 |
) |
|
|
(47,796 |
) |
| Net cash used in
investing activities |
|
|
(497,033 |
) |
|
|
(9,923 |
) |
|
|
(714,348 |
) |
|
|
(77,491 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Financing
activities |
|
|
|
|
|
|
|
|
|
|
|
|
| Increase
(decrease) in long-term debt, net |
|
|
418,207 |
|
|
|
(9,843 |
) |
|
|
419,683 |
|
|
|
209,825 |
|
| Purchases of
non-controlling interests, net |
|
|
(8,052 |
) |
|
|
(8,256 |
) |
|
|
(17,789 |
) |
|
|
(24,589 |
) |
| Dividends paid to
common shareholders |
|
|
(7,542 |
) |
|
|
(7,077 |
) |
|
|
(14,674 |
) |
|
|
(13,517 |
) |
| Distributions paid
to non-controlling interests |
|
|
(17,475 |
) |
|
|
(16,702 |
) |
|
|
(66,302 |
) |
|
|
(67,822 |
) |
| Issuance of
subordinate voting shares |
|
|
- |
|
|
|
- |
|
|
|
286,924 |
|
|
|
- |
|
| Other financing
activities |
|
|
11,003 |
|
|
|
(5,892 |
) |
|
|
28,096 |
|
|
|
7,745 |
|
| Net cash provided
by (used in) financing activities |
|
|
396,141 |
|
|
|
(47,770 |
) |
|
|
635,938 |
|
|
|
111,642 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Effect of exchange
rate changes on cash, |
|
|
|
|
|
|
|
|
|
|
|
|
| |
cash equivalents and
restricted cash |
|
|
(1,663 |
) |
|
|
(3,447 |
) |
|
|
(6,109 |
) |
|
|
(3,160 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net change in cash
and cash |
|
|
|
|
|
|
|
|
|
|
|
|
| |
equivalents and restricted
cash |
|
|
4,573 |
|
|
|
(18,987 |
) |
|
|
26,183 |
|
|
|
39,549 |
|
| Cash and cash
equivalents and |
|
|
|
|
|
|
|
|
|
|
|
|
| |
restricted cash, beginning of
period |
|
|
240,685 |
|
|
|
257,578 |
|
|
|
219,075 |
|
|
|
199,042 |
|
| Cash and cash
equivalents and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
restricted cash, end of period |
|
$ |
245,258 |
|
|
$ |
238,591 |
|
|
$ |
245,258 |
|
|
$ |
238,591 |
|
| Colliers
International Group Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
| Segmented
Results |
| (in thousands of
US dollars) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Real Estate |
|
|
|
Investment |
|
|
|
|
|
(unaudited) |
Services |
|
Engineering |
|
Management |
|
Corporate |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three
months ended September 30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
734,932 |
|
$ |
316,624 |
|
$ |
127,405 |
|
$ |
98 |
|
|
$ |
1,179,059 |
| |
Adjusted
EBITDA |
|
64,744 |
|
|
39,820 |
|
|
55,962 |
|
|
(5,890 |
) |
|
|
154,636 |
| |
Operating earnings
(loss) |
|
42,399 |
|
|
19,700 |
|
|
67,217 |
|
|
(19,579 |
) |
|
|
109,737 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Revenues |
$ |
677,278 |
|
$ |
259,925 |
|
$ |
118,717 |
|
$ |
112 |
|
|
$ |
1,056,032 |
| |
Adjusted EBITDA |
|
59,735 |
|
|
32,263 |
|
|
55,164 |
|
|
(2,250 |
) |
|
|
144,912 |
|
|
Operating earnings (loss) |
|
40,814 |
|
|
20,017 |
|
|
20,388 |
|
|
(10,320 |
) |
|
|
70,899 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Real Estate |
|
|
|
Investment |
|
|
|
|
|
|
Services |
|
Engineering |
|
Management |
|
Corporate |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Nine
months ended September 30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Revenues |
$ |
2,128,082 |
|
$ |
816,023 |
|
$ |
375,977 |
|
$ |
325 |
|
|
$ |
3,320,407 |
| |
Adjusted
EBITDA |
|
197,236 |
|
|
71,814 |
|
|
159,301 |
|
|
(9,396 |
) |
|
|
418,955 |
| |
Operating earnings
(loss) |
|
123,508 |
|
|
32,614 |
|
|
161,129 |
|
|
(49,439 |
) |
|
|
267,812 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Revenues |
$ |
2,013,288 |
|
$ |
727,995 |
|
$ |
358,323 |
|
$ |
367 |
|
|
$ |
3,099,973 |
| |
Adjusted EBITDA |
|
169,988 |
|
|
71,596 |
|
|
160,100 |
|
|
(5,069 |
) |
|
|
396,615 |
|
|
Operating earnings (loss) |
|
91,991 |
|
|
42,667 |
|
|
61,599 |
|
|
(27,952 |
) |
|
|
168,305 |
COMPANY CONTACTS:Jay S. HennickChairman & Chief Executive
Officer
Chris McLernonChief Executive Officer, Real Estate
Services
Christian MayerChief Financial Officer(416) 960-9500
Colliers (NASDAQ:CIGI)
過去 株価チャート
から 10 2024 まで 11 2024
Colliers (NASDAQ:CIGI)
過去 株価チャート
から 11 2023 まで 11 2024
