Colliers Reports Third Quarter Results

Growing recurring revenues and broader diversification convey extra resilience

Third quarter working highlights:

TORONTO, Nov. 01, 2022 (GLOBE NEWSWIRE) — Colliers International Group Inc. (NASDAQ and TSX: CIGI) (“Colliers” or the “Company”) right this moment introduced working and monetary outcomes for the third quarter ended September 30, 2022. All quantities are in US {dollars}.

For the quarter ended September 30, 2022, revenues have been $1.11 billion, up 8% (12% in native forex), adjusted EBITDA (be aware 1) was $145.1 million, up 17% (21% in native forex) and adjusted EPS (be aware 2) was $1.41, up 11% versus the prior yr interval. Third quarter adjusted EPS would have been roughly $0.06 increased excluding international trade impacts. GAAP working earnings have been $84.0 million as in comparison with $76.0 million. GAAP diluted internet earnings per share have been $0.27 versus $0.40 within the prior yr quarter. Third quarter GAAP EPS would have been roughly $0.07 increased excluding adjustments in international trade charges.

For the 9 months ended September 30, 2022, revenues have been $3.24 billion, up 18% (21% in native forex), adjusted EBITDA (be aware 1) was $427.8 million, up 21% (24% in native forex) and adjusted EPS (be aware 2) was $4.69, up 20% versus prior yr. Nine months ended September 30, 2022 adjusted EPS would have been roughly $0.13 increased excluding international trade impacts. The GAAP working earnings have been $228.7 million and included $27.4 million loss on disposal of the Company’s operations, primarily in Russia. The prior yr GAAP working lack of $269.9 million included $471.9 million settlement of the Long-Term Incentive Arrangement (“LTIA”) with the Company’s Chairman & CEO. The GAAP earnings per share have been $0.54 as in comparison with diluted loss per share of $10.19. Year thus far GAAP EPS would have been roughly $0.14 increased excluding adjustments in international trade charges.

“Colliers reported solid third quarter results with Outsourcing & Advisory, Investment Management and Leasing all up strongly, more than offsetting the softness in Capital Markets which is being impacted by higher interest rates, availability of capital and other geopolitical uncertainties,” stated Jay S. Hennick, Global Chairman & CEO of Colliers. “Growing recurring revenues and earnings, now at 55% of our proforma EBITDA, together with broader diversification across service lines, geography and client types means the Colliers diversified services business model has more balance and resilience than ever.”

“With the recent additions of Rockwood and Versus, our Investment Management business now represents nearly 30% of our pro forma EBITDA and total assets under management has surpassed $92 billion, firmly establishing Colliers as one of the top players in the rapidly growing alternative private capital industry. In addition, about 85% of our AUM are in perpetual or long-dated strategies with 70% invested in highly defensive asset classes like alternatives and infrastructure creating long-term revenue streams that further fortify our business. Importantly, each of our investment platforms has delivered top-tier returns over the long-term and is led by best-in-class leadership teams who hold significant equity in their own operations thereby creating perfect alignment with our investors and shareholders.”

“In our core service business, we acquired Peakurban during the quarter, adding significant engineering capabilities and a new growth engine to our business in Australia. We also bolstered our presence in the Nordics with an agreement to acquire Pangea Property Partners, a leading real estate advisory firm in Norway and Sweden. Together with our existing operations in Denmark and Finland, Colliers will be the number one player in the Nordic region once the transaction is completed. Finally, just after quarter end, we added Arcadia Property Management to our strong US business, creating further scale and capability in our property management operations.”

“With our highly respected global brand, balanced and diversified business model with significant recurring revenues, a unique enterprising culture and a proven track record of more than 27 years, Colliers continues to be well-positioned to deliver exceptional returns for shareholders in the years to come,” he concluded.

About Colliers
Colliers (NASDAQ, TSX: CIGI) is a number one diversified skilled providers and funding administration firm. With operations in 63 nations, our 18,000 enterprising professionals work collaboratively to offer knowledgeable actual property and funding recommendation to purchasers. For greater than 27 years, our skilled management with vital inside possession has delivered compound annual funding returns of roughly 20% for shareholders. With annual revenues of $4.6 billion and $92 billion of property below administration, Colliers maximizes the potential of property and actual property to speed up the success of our purchasers, our traders and our folks. Learn extra at company.colliers.com, Twitter @Colliers or LinkedIn.

Consolidated Revenues by Line of Service

Consolidated revenues for the third quarter elevated 12% on an area forex foundation, led by Investment Management, Outsourcing & Advisory and Leasing. Consolidated inner revenues measured in native currencies have been up 4% (be aware 3) versus the prior yr quarter.

For the 9 months ended September 30, 2022, consolidated revenues elevated 21% on an area forex foundation. Consolidated inner revenues measured in native currencies have been up 15% (be aware 3).

Segmented Third Quarter Results
Revenues within the Americas area totalled $695.1 million for the third quarter, up 13% (13% in native forex) versus $617.1 million within the prior yr quarter. Revenue development was led by Outsourcing & Advisory, significantly Engineering & Design (together with current acquisitions) and Leasing, which benefitted from elevated exercise in workplace and industrial asset courses. Capital Markets revenues have been impacted by rising rates of interest and market uncertainty which diminished gross sales brokerage and debt origination and financing exercise. Adjusted EBITDA was $66.8 million, up 1% (2% in native forex) from the very sturdy prior yr quarter. The margin was impacted by (i) increased discretionary and variable prices in addition to (ii) adjustments in income combine with a discount in higher-margin Capital Markets transactions. GAAP working earnings have been $59.9 million, relative to $48.9 million within the prior yr quarter.

Revenues within the EMEA area totalled $164.2 million for the third quarter, up 6% (23% in native forex) in comparison with $154.9 million within the prior yr quarter with development throughout all service strains, though erratically distributed throughout nations. Revenues have been significantly sturdy within the United Kingdom (together with a current challenge administration acquisition), which greater than offset the impression of upper rates of interest and geopolitical uncertainty. Adjusted EBITDA was $13.3 million, down 11% (up 1% in native forex) relative to the prior yr primarily because of adjustments in income combine. GAAP working earnings have been $6.1 million, versus working earnings of $11.4 million within the prior yr quarter.

Revenues within the Asia Pacific area totalled $152.8 million for the third quarter in comparison with $172.3 million within the prior yr quarter, down 11% (down 4% in native forex). Revenues have been impacted by increased rates of interest, geopolitical uncertainty and COVID-19 restrictions in a number of Asian markets, particularly China. Adjusted EBITDA was $21.1 million, up 2% (up 12% in native forex) relative to the prior yr on a decrease price construction. GAAP working earnings have been $17.5 million, versus $18.3 million within the prior yr quarter.

Investment Management revenues for the third quarter have been $96.1 million in comparison with $78.3 million within the prior yr quarter, up 23% (23% in native forex). Passthrough income from historic carried curiosity was nil within the quarter versus $18.6 million within the prior yr quarter. Excluding the impression of carried curiosity, income was up 61% (62% in native forex) pushed by (i) acquisitions and (ii) administration charge development from elevated property below administration. Adjusted EBITDA was $36.9 million, up 33% (33% in native forex) over the prior yr quarter. GAAP working earnings have been $19.5 million within the quarter, versus $19.8 million within the prior yr quarter. Assets below administration have been $86.2 billion as of September 30, 2022, up 87% from $46.1 billion on September 30, 2021. Including Versus Capital (accomplished on October 12, 2022), property below administration at the moment are $92.2 billion.

Unallocated international company earnings as reported in Adjusted EBITDA have been $7.0 million within the third quarter, relative to unallocated international company prices of $5.6 million within the prior yr quarter because of a discount in performance-based compensation accruals within the present interval and international trade impression. The company GAAP working loss for the quarter was $19.0 million relative to a lack of $22.5 million within the third quarter of 2021, with the prior yr interval impacted by increased contingent acquisition consideration expense associated to acquisitions.

Outlook for 2022
The Company is adjusting its outlook for the total yr 2022 to mirror yr thus far working outcomes, contributions from current acquisitions, the working impression of rising international rates of interest and geopolitical uncertainties in addition to adversarial international trade impacts on AEPS. The earnings tax charge and NCI share of earnings additionally mirror up to date expectations regarding the earnings combine for the yr. The monetary outlook is predicated on the Company’s greatest accessible data as of the date of this press launch, and stays topic to alter based mostly on, however not restricted to, quite a few macroeconomic, well being, social, geopolitical (together with escalation of hostilities, outbreak of warfare, elections, disruption of provide chains) and associated elements.

(1) Excluding loss on disposal of operations

Repurchase of Subordinate Voting Shares
During the interval from September 28, 2022 to October 28, 2022, the Company bought 372,888 Subordinate Voting Shares for complete consideration of $34.6 million in reference to the Company’s regular course issuer bid (“NCIB”) at a weighted common buy worth of $92.59 per US share. Under the NCIB, all shares are bought for cancellation.

Since the start of the yr, the Company has bought, for cancellation, 1.37 million Subordinate Voting Shares for complete consideration of $160.9 million at a weighted common buy worth of $120.17 per US share.

Colliers could buy its Subordinate Voting Shares, infrequently, if it believes that the market worth of its Subordinate Voting Shares is enticing and that the acquisition can be an acceptable use of company funds and in the perfect pursuits of the Company.

Conference Call
Colliers can be holding a convention name on Tuesday, November 1, 2022 at 11:00 a.m. Eastern Time to debate the quarter’s outcomes. The name, in addition to a supplemental slide presentation, can be concurrently internet solid and could be accessed dwell or after the decision at company.colliers.com within the Events part.

Forward-looking Statements
This press launch consists of or could embody forward-looking statements. Forward-looking statements embody the Company’s monetary efficiency outlook and statements relating to objectives, beliefs, methods, targets, plans or present expectations. These statements contain identified and unknown dangers, uncertainties and different elements which can trigger the precise outcomes to be materially completely different from any future outcomes, efficiency or achievements contemplated within the forward-looking statements. Such elements embody: financial circumstances, particularly as they relate to industrial and shopper credit score circumstances and shopper spending, significantly in areas the place our business could also be concentrated; industrial actual property and actual asset values, emptiness charges and common circumstances of monetary liquidity for actual property transactions; developments in pricing and threat assumption for industrial actual property providers; the impact of great actions in common capitalization charges throughout completely different asset varieties; a discount by firms of their reliance on outsourcing for his or her industrial actual property wants, which might have an effect on revenues and working efficiency; competitors within the markets served by the Company; the power to draw new purchasers and to retain main purchasers and renew associated contracts; the power to retain and incentivize producers; will increase in wage and profit prices; the consequences of adjustments in rates of interest on the price of borrowing; sudden will increase in working prices, similar to insurance, staff’ compensation and well being care; adjustments within the frequency or severity of insurance incidents relative to historic expertise; the consequences of adjustments in international trade charges in relation to the US greenback on the Company’s Canadian greenback, Euro, Australian greenback and UK pound sterling denominated revenues and bills; the impression of pandemics on consumer demand for the Company’s providers, the power of the Company to ship its providers and the well being and productiveness of its workers; the impression of worldwide local weather change; the impression of political occasions together with elections, referenda, commerce coverage adjustments, immigration coverage adjustments, hostilities and terrorism on the Company’s operations; the power to determine and make acquisitions at affordable costs and efficiently combine acquired operations; the power to execute on, and adapt to, data know-how methods and developments; the power to adjust to legal guidelines and rules associated to our international operations, together with actual property funding administration and mortgage banking licensure, labour and employment legal guidelines and rules, in addition to the anti-corruption legal guidelines and commerce sanctions; and adjustments in authorities legal guidelines and insurance policies on the federal, state/provincial or native degree which will adversely impression the business.

Additional data and threat elements are recognized within the Company’s different periodic filings with Canadian and US securities regulators (which elements are adopted herein and a duplicate of which could be obtained at www.sedar.com). Forward trying statements contained on this press launch are made as of the date hereof and are topic to alter. All forward-looking statements on this press launch are certified by these cautionary statements. Except as required by relevant legislation, Colliers undertakes no obligation to publicly replace or revise any forward-looking assertion, whether or not because of new data, future occasions or in any other case.

Summary monetary data is offered on this press launch. This press launch ought to be learn along side the Company’s consolidated monetary statements and MD&A to be made accessible on SEDAR at www.sedar.com.

This press launch doesn’t represent a proposal to promote or a solicitation of a proposal to buy an curiosity in any fund.

Notes
Non-GAAP Measures
1. Reconciliation of internet earnings to adjusted EBITDA:

Adjusted EBITDA is outlined as internet earnings, adjusted to exclude: (i) earnings tax; (ii) different expense (earnings); (iii) curiosity expense; (iv) settlement of LTIA; (v) loss on disposal of operations; (vi) depreciation and amortization, together with amortization of mortgage servicing rights (“MSRs”); (vii) positive aspects attributable to MSRs; (viii) acquisition-related gadgets (together with contingent acquisition consideration honest worth changes, contingent acquisition consideration-related compensation expense and transaction prices); (ix) restructuring prices and (x) stock-based compensation expense. We use adjusted EBITDA to guage our personal working efficiency and our potential to service debt, in addition to an integral a part of our planning and reporting techniques. Additionally, we use this measure along side discounted money circulation fashions to find out the Company’s general enterprise valuation and to guage acquisition targets. We current adjusted EBITDA as a supplemental measure as a result of we consider such measure is helpful to traders as an inexpensive indicator of working efficiency due to the low capital depth of the Company’s service operations. We consider this measure is a monetary metric utilized by many traders to check firms, particularly within the providers business. This measure will not be a acknowledged measure of monetary efficiency below GAAP within the United States, and shouldn’t be thought of as an alternative to working earnings, internet earnings or money circulation from working actions, as decided in accordance with GAAP. Our technique of calculating adjusted EBITDA could differ from different issuers and accordingly, this measure might not be corresponding to measures utilized by different issuers. A reconciliation of internet earnings to adjusted EBITDA seems under.

2. Reconciliation of internet earnings and diluted internet earnings per widespread share to adjusted internet earnings and adjusted EPS:

Adjusted EPS is outlined as diluted internet earnings per share as calculated below the “if-converted” technique, adjusted for the impact, after earnings tax, of: (i) the non-controlling curiosity redemption increment; (ii) settlement of LTIA; (iii) loss on disposal of operations; (iv) amortization expense associated to intangible property acknowledged in reference to acquisitions and MSRs; (v) positive aspects attributable to MSRs; (vi) acquisition-related gadgets; (vii) restructuring prices and (viii) stock-based compensation expense. We consider this measure is helpful to traders as a result of it offers a supplemental method to perceive the underlying working efficiency of the Company and enhances the comparability of working outcomes from interval to interval. Adjusted EPS will not be a acknowledged measure of monetary efficiency below GAAP, and shouldn’t be thought of as an alternative to diluted internet earnings per share from persevering with operations, as decided in accordance with GAAP. Our technique of calculating this non-GAAP measure could differ from different issuers and, accordingly, this measure might not be corresponding to measures utilized by different issuers. A reconciliation of internet earnings to adjusted internet earnings and of diluted internet earnings per share to adjusted EPS seems under.

Adjusted EPS is calculated utilizing the “if-converted” technique of calculating earnings per share in relation to the Convertible Notes, which have been issued on May 19, 2020. As such, the curiosity (internet of tax) on the Convertible Notes is added to the numerator and the extra shares issuable on conversion of the Convertible Notes are added to the denominator of the earnings per share calculation to find out if an assumed conversion is extra dilutive than no assumption of conversion. The “if-converted” technique is used if the impression of the assumed conversion is dilutive. The “if-converted” technique is dilutive for the adjusted EPS calculation for all intervals offered.

3. Reconciliation of internet money circulation from operations to free money circulation:

Free money circulation is outlined as internet money circulation from working actions plus contingent acquisition consideration paid, plus the money portion of the LTIA settlement, much less purchases of fastened property, plus money collections on AR Facility deferred buy worth. We use free money circulation as a measure to guage and monitor working efficiency in addition to our potential to service debt, fund acquisitions and pay of dividends to shareholders and distributions to non-controlling pursuits. We current free money circulation as a supplemental measure as a result of we consider this measure is a monetary metric utilized by many traders to check valuation and liquidity measures throughout firms, particularly within the providers business. This measure will not be a acknowledged measure of monetary efficiency below GAAP within the United States, and shouldn’t be thought of as an alternative to working earnings, internet earnings or money circulation from working actions, as decided in accordance with GAAP. Our technique of calculating free money circulation could differ from different issuers and accordingly, this measure might not be corresponding to measures utilized by different issuers. A reconciliation of internet money circulation from working actions to free money circulation seems under.

4. Local forex income development charge and inner income development charge measures

Percentage income variances offered on an area forex foundation are calculated by translating the present interval outcomes of our non-US greenback denominated operations to US {dollars} utilizing the international forex trade charges from the intervals in opposition to which the present interval outcomes are being in contrast. Percentage income variances offered on an inner development foundation are calculated assuming no impression from acquired entities within the present and prior intervals. Revenue from acquired entities, together with any international trade impacts, are handled as acquisition development till the respective anniversaries of the acquisitions. We consider that these income development charge methodologies present a framework for assessing the Company’s efficiency and operations excluding the consequences of international forex trade charge fluctuations and acquisitions. Since these income development charge measures should not calculated below GAAP, they might not be corresponding to comparable measures utilized by different issuers.

5. Assets below administration

We use the time period property below administration (“AUM”) as a measure of the size of our Investment Management operations. AUM is outlined because the gross market worth of working property and the projected gross price of improvement property of the funds, partnerships and accounts to which we offer administration and advisory providers, together with capital that such funds, partnerships and accounts have the best to name from traders pursuant to capital commitments. Our definition of AUM could differ from these utilized by different issuers and as such might not be immediately corresponding to comparable measures utilized by different issuers.

6. Adjusted EBITDA from recurring income share

Adjusted EBITDA from recurring income share is computed on a trailing twelve-month foundation and represents the proportion of adjusted EBITDA (be aware 1) that’s derived from Outsourcing & Advisory and Investment Management service strains. Both these service strains signify medium to long-term length income streams which might be both contractual or repeatable in nature. We report this metric on a professional forma foundation, incorporating the anticipated full yr impression of business acquisitions and tendencies.

Notes to Condensed Consolidated Statements of Earnings
(1)   Acquisition-related gadgets embody contingent acquisition consideration honest worth changes, contingent acquisition consideration-related compensation expense and transaction prices.
(2)   Settlement of Long-Term Incentive Arrangement with the Company’s Chairman & CEO as permitted by 95% of the Company’s disinterested shareholders. The settlement resulted in a money fee of $96,186 and the issuance of three,572,858 Subordinate Voting Shares on April 16, 2021.
(3)   Diluted EPS is calculated utilizing the “if-converted” technique of calculating earnings per share in relation to the Convertible Notes, which have been issued on May 19, 2020. As such, the curiosity (internet of tax) on the Convertible Notes is added to the numerator and the extra shares issuable on conversion of the Convertible Notes are added to the denominator of the earnings per share calculation to find out if an assumed conversion is extra dilutive than no assumption of conversion. The “if-converted” technique is used if the impression of the assumed conversion is dilutive. The “if-converted” technique is anti-dilutive for the three-month and nine-month intervals ended September 30, 2022 and 2021.
(4)   See definition and reconciliation above.

Notes to Condensed Consolidated Balance Sheets
(1)   Restricted money consists primarily of money quantities put aside to fulfill authorized or contractual necessities arising within the regular course of business.
(2)   Warehouse receivables signify mortgage loans receivable, nearly all of that are offset by borrowings below warehouse credit score amenities which fund loans that monetary establishments have dedicated to buy.
(3)   Excluding warehouse credit score amenities and convertible notes.
(4)   Net debt for monetary leverage ratio excludes restricted money, warehouse credit score amenities and convertible notes, in accordance with debt agreements.

Notes to Segmented Results
(1)   Operating earnings (loss) embody $27,358 loss on disposal of sure operations, primarily in EMEA.

COMPANY CONTACTS:

Jay S. Hennick
Global Chairman & Chief Executive Officer

Christian Mayer
Global Chief Financial Officer
(416) 960-9500