CB Richard Ellis Group, Inc. Reports First Quarter 2004 Results.Business Editors/Real Estate Writers LOS LOS Length of stay, see there ANGELES--(BUSINESS WIRE)--May 6, 2004 CB Richard Ellis CB Richard Ellis Group, Inc. NYSE: CBG is a multinational real estate corporation currently based in Los Angeles, California, U.S.A.. On December 20, 2006, the corporation, also known as CBRE, completed acquisition of Trammell Crow Co. in a transaction valued at $2. Group, Inc., parent corporation of CB Richard Ellis Services, Inc., the world's largest commercial real estate services firm (based on 2003 revenue), today reported its results for the three months ended March 31, 2004. Revenue totaled $441.0 million for the first quarter ended March 31, 2004, an increase of $177.3 million or 67.2% as compared to $263.7 million for the first quarter ended March 31, 2003. Net loss totaled $15.2 million for the first quarter ended March 31, 2004 compared to a net loss of $1.3 million for the same period last year. The net loss in the current period was mainly driven by $7.6 million of amortization expense resulting from intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. acquired in connection with the acquisition of Insignia in·sig·ni·a also in·sig·ne n. pl. insignia or in·sig·ni·as 1. A badge of office, rank, membership, or nationality; an emblem. 2. A distinguishing sign. Financial Group, Inc. (Insignia Acquisition) as well as merger-related charges (separately identified) and integration costs (included in operating, administrative and other expenses) totaling $13.1 million associated with the Insignia Acquisition. The intangible asset amortization primarily pertains to the revenue backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. acquired in the Insignia transaction. Net income cannot be recognized from purchased backlog; hence this amortization expense offsets that portion of operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. that was generated from the Insignia backlog acquired. Earnings Before Interest, Taxes, Depreciation and Amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
a. 1. Mentioned or named before; aforesaid; mentioned or named earlier in the same text (in written documents). Adj. 1. $13.1 million of merger and integration related charges. In our Americas A·mer·i·cas , the See America. segment, revenue totaled $327.2 million for the first quarter ended March 31, 2004, an increase of $127.2 million or 63.6% as compared to $199.9 million for the first quarter ended March 31, 2003. Operating income for our Americas segment totaled $2.4 million for the first quarter ended March 31, 2004 compared to operating income of $11.3 million for the same period last year. The decrease in operating income in the current period was mainly driven by $3.9 million of amortization expense resulting from intangible assets acquired in the Insignia Acquisition as well as merger-related charges and integration costs totaling $10.2 million associated with the Insignia Acquisition. EBITDA for our Americas segment totaled $15.2 million for the first quarter ended March 31, 2004, a decrease of $3.8 million from last year's same period results. The decline in EBITDA in the current period was mainly attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the previously mentioned $10.2 million of merger and integration related charges. In our EMEA (Europe, Middle East, Africa) Refers to that region of the world. For example, one might see products packaged differently for the UK, EMEA and Asia Pacific markets. segment, revenue totaled $85.4 million for the first quarter ended March 31, 2004, an increase of $39.9 million or 87.7% as compared to $45.5 million for the first quarter ended March 31, 2003. Operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for our EMEA segment totaled $10.0 million for the first quarter ended March 31, 2004 compared to an operating loss of $0.7 million for the same period last year. The increase in operating loss in the current period was mainly driven by increased charges as a result of the Insignia Acquisition, including $3.7 million of amortization expense resulting from intangible assets acquired as well as $2.9 million of merger-related and integration costs, and higher occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy expenses in the United Kingdom as a result of our relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. to new facilities in the fourth quarter of 2003. EBITDA for our EMEA segment totaled negative $4.5 million for the first quarter ended March 31, 2004, a decrease of $4.6 million from last year's same period results. The decline in EBITDA in the current period was primarily driven by increased costs as a result of the Insignia Acquisition, including $2.9 million of merger-related and integration costs, and higher occupancy expenses in the United Kingdom. In our Asia Pacific segment, revenue totaled $28.4 million for the first quarter ended March 31, 2004, an increase of $10.1 million or 55.5% as compared to $18.3 million for the first quarter ended March 31, 2003. Operating income for our Asia Pacific segment totaled $0.5 million for the first quarter ended March 31, 2004 compared to an operating loss of $2.8 million for the same period last year. EBITDA for our Asia Pacific segment totaled $1.6 million for the first quarter ended March 31, 2004, an increase of $3.7 million from last year's same period results. The increases in operating income and EBITDA in the current period were mainly driven by the Company's efforts to increase market share in Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. . On May 6, 2004, at 7:00 a.m. Pacific time, the Company will hold a conference call with its bondholders to discuss its results for the quarter ended March 31, 2004. To access the call, dial 888-423-3275, access code 730529 (outside the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , please call 612-332-0530). A transcript A generic term for any kind of copy, particularly an official or certified representation of the record of what took place in a court during a trial or other legal proceeding. A transcript of record of the call will be available at www.cbre.com for review for twelve months after the call. About CB Richard Ellis Headquartered in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , CB Richard Ellis is the world's largest commercial real estate services firm (in terms of 2003 revenue). With approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 13,500 employees, the company serves real estate owners, investors and occupiers through more than 220 offices worldwide. The company's core services The introduction to this article provides insufficient context for those unfamiliar with the subject matter. Please help [ improve the introduction] to meet Wikipedia's layout standards. You can discuss the issue on the talk page. include property sales, leasing and management; corporate services Activities that combine or consolidate certain enterprise-wide needed support services, provided based on specialized knowledge, best practices, and technology to serve internal (and sometimes external) customers and business partners. ; facilities and project management; mortgage banking; investment management; appraisal and valuation; research; and consulting. For more information, visit the company's Web site at www.cbre.com.
CB RICHARD ELLIS GROUP, INC.
OPERATING RESULTS
FOR THE THREE MONTHS ENDED MARCH 31, 2004 AND 2003
(Dollars in thousands)
(Unaudited)
Three Months Ended
March 31,
------------------
2004 2003
-------- --------
Revenue $440,992 $263,724
-------- --------
Costs and expenses:
Cost of services 222,018 123,599
Operating, administrative and other 199,251 126,175
Depreciation and amortization 16,831 6,171
Merger-related charges 9,960 -
-------- --------
Total costs and expenses 448,060 255,945
-------- --------
Operating (loss) income (7,068) 7,779
Equity income from unconsolidated subsidiaries 2,526 3,063
Interest income 2,307 1,075
Interest expense 20,679 14,324
-------- --------
Loss before benefit for income taxes (22,914) (2,407)
Benefit for income taxes (7,701) (1,060)
-------- --------
Net loss $(15,213) $ (1,347)
======== ========
EBITDA $ 12,289 $ 17,013
======== ========
Net loss margin (3.4)% (0.5)%
======== ========
EBITDA margin 2.8% 6.5%
EBITDA represents earnings before net interest expense, income taxes, depreciation and amortization. EBITDA margin represents EBITDA divided by revenue. Our management believes EBITDA and EBITDA margin are useful to readers because they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. In addition, our management believes that EBITDA is useful in evaluating our performance compared to that of other companies in our industry because the calculation of EBITDA generally eliminates the effects of financing and income taxes and the accounting effects of capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. and acquisitions, which items may vary for different companies for reasons unrelated to overall operating performance. As a result, our management uses EBITDA as a measure to evaluate the performance of our various business lines and for other discretionary purposes, including as a significant component when measuring our performance under our employee incentive programs. However, EBITDA is not a recognized measurement under U.S. generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting , or GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). , and when analyzing our operating performance, readers should use EBITDA in addition to, and not as an alternative for, operating (loss) income and net loss, each as determined in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP. Because not all companies use identical calculations, our presentation of EBITDA and EBITDA margin may not be comparable to similarly titled measures of other companies. Furthermore, EBITDA is not intended to be a measure of free cash flow for our management's discretionary use, as it does not consider certain cash requirements such as tax payments and debt service requirements. The amounts shown for EBITDA also differ from the amounts calculated under similarly titled definitions in our debt instruments, which are further adjusted to reflect certain other cash and non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. and are used to determine compliance with financial covenants and our ability to engage in certain activities, such as incurring in·cur tr.v. in·curred, in·cur·ring, in·curs 1. To acquire or come into (something usually undesirable); sustain: incurred substantial losses during the stock market crash. 2. additional debt and making certain restricted payments.
EBITDA is calculated as follows:
Three Months
Ended March 31,
-----------------
2004 2003
-------- -------
Net loss $(15,213) $(1,347)
Add:
Depreciation and amortization 16,831 6,171
Interest expense 20,679 14,324
Benefit for income taxes (7,701) (1,060)
Less:
Interest income 2,307 1,075
-------- -------
EBITDA $ 12,289 $17,013
======== =======
CB RICHARD ELLIS GROUP, INC.
SEGMENT RESULTS
FOR THE THREE MONTHS ENDED MARCH 31, 2004 AND 2003
(Dollars in thousands)
(Unaudited)
Three Months Ended
March 31,
-------------------
2004 2003
--------- ---------
Americas
--------
Revenue $327,191 $199,950
Costs and expenses:
Cost of services 171,692 94,993
Operating, administrative and other 135,165 89,165
Depreciation and amortization 10,309 4,522
Merger-related charges 7,616 -
--------- ---------
Operating income $2,409 $11,270
========= =========
EBITDA $15,198 $19,018
========= =========
Operating income margin 0.7% 5.6%
========= =========
EBITDA margin 4.6% 9.5%
========= =========
EMEA
----
Revenue $85,357 $45,478
Costs and expenses:
Cost of services 36,225 19,563
Operating, administrative and other 51,067 25,690
Depreciation and amortization 5,706 913
Merger-related charges 2,344 -
--------- ---------
Operating loss $(9,985) $(688)
========= =========
EBITDA $(4,517) $99
========= =========
Operating loss margin (11.7)% (1.5)%
========= =========
EBITDA margin (5.3)% 0.2%
========= =========
Asia Pacific
------------
Revenue $28,444 $18,296
Costs and expenses:
Cost of services 14,101 9,043
Operating, administrative and other 13,019 11,320
Depreciation and amortization 816 736
--------- ---------
Operating income (loss) $508 $(2,803)
========= =========
EBITDA $1,608 $(2,104)
========= =========
Operating income (loss) margin 1.8 % (15.3)%
========= =========
EBITDA margin 5.7% (11.5)%
========= =========
EBITDA represents earnings before net interest expense, income taxes, depreciation and amortization. EBITDA margin represents EBITDA divided by revenue. Our management believes EBITDA and EBITDA margin are useful to readers because they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. In addition, our management believes that EBITDA is useful in evaluating our operating performance compared to that of other companies in our industry because the calculation of EBITDA generally eliminates the effects of financing and income taxes and the accounting effects of capital spending and acquisitions, which items may vary for different companies for reasons unrelated to overall operating performance. As a result, our management uses EBITDA as a measure to evaluate the performance of our various business lines and for other discretionary purposes, including as a significant component when measuring our performance under our employee incentive programs. However, EBITDA is not a recognized measurement under U.S. generally accepted accounting principles, or GAAP, and when analyzing our operating performance, readers should use EBITDA in addition to, and not as an alternative for, operating (loss) income as determined in accordance with GAAP. Because not all companies use identical calculations, our presentation of EBITDA and EBITDA margin may not be comparable to similarly titled measures of other companies. Furthermore, EBITDA is not intended to be a measure of free cash flow for our management's discretionary use, as it does not consider certain cash requirements such as interest payments, tax payments and debt service requirements. We do not allocate To reserve a resource such as memory or disk. See memory allocation. net interest expense or benefit for income taxes among our segments. Accordingly, EBITDA for our segments is calculated as follows:
Three Months
Ended March 31,
-----------------
2004 2003
-------- --------
Americas
--------
Operating income $2,409 $11,270
Add:
Depreciation and amortization 10,309 4,522
Equity income from unconsolidated subsidiaries 2,480 3,226
-------- --------
EBITDA $15,198 $19,018
======== ========
EMEA
----
Operating loss $(9,985) $(688)
Add:
Depreciation and amortization 5,706 913
Equity loss from unconsolidated subsidiaries (238) (126)
-------- --------
EBITDA $(4,517) $99
======== ========
Asia Pacific
------------
Operating income (loss) $508 $(2,803)
Add:
Depreciation and amortization 816 736
Equity income (loss) from unconsolidated
subsidiaries 284 (37)
-------- --------
EBITDA $1,608 $(2,104)
======== ========
CB RICHARD ELLIS GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)
March 31, December
2004 31, 2003
----------- -----------
Assets:
Cash and cash equivalents $54,254 $163,881
Restricted cash 15,165 14,899
Warehouse receivable(a) 72,725 230,790
Other current assets 399,304 429,412
Property and equipment, net 117,340 113,569
Goodwill and other intangible assets,
net 953,142 951,289
Deferred compensation assets 81,111 76,389
Other assets, net 228,049 233,252
----------- -----------
Total assets $1,921,090 $2,213,481
=========== ===========
Liabilities:
Current liabilities, excluding debt $428,525 $551,995
Warehouse line of credit(a) 72,725 230,790
Revolver and swingline credit facility 13,250 -
Senior secured term loan tranche B 295,000 297,500
11 1/4% senior subordinated notes 226,236 226,173
9 3/4% senior notes 200,000 200,000
16% senior notes 35,756 35,472
Other debt (b) 72,598 82,907
Deferred compensation liability 144,996 138,037
Other long-term liabilities 111,629 111,022
----------- -----------
Total liabilities 1,600,715 1,873,896
Minority interest 6,860 6,656
Stockholders' equity 313,515 332,929
----------- -----------
Total liabilities and stockholders' equity $1,921,090 $2,213,481
=========== ===========
(a) Includes Freddie MAC loan receivables and related non-recourse
warehouse line of credit of $72.7 million and $230.8 million at March
31, 2004 and December 31, 2003, respectively.
(b) Includes non-recourse debt relating to a building investment in
Japan of $44.6 million and $43.7 million at March 31, 2004 and
December 31, 2003, respectively.
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion