CB Richard Ellis Group, Inc. Reports Fourth Quarter and Full Year 2003 Results.Business Editors/Real Estate Writers LOS LOS Length of stay, see there ANGELES--(BUSINESS WIRE)--Feb. 18, 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. (formerly CBRE CBRE CB Richard Ellis (real-estate firm) CBRE Chemical, Biological, Radiological and Explosive CBRE Component-Based Reliability Estimation CBRE Coldwell Banker Richard Ellis (Boston, MA) Holding, Inc.), parent corporation of CB Richard Ellis Services, Inc., the world's largest commercial real estate services firm (based on 2002 revenue), today reported its results for the three and twelve months ended December December: see month. 31, 2003. Revenue totaled $621.3 million for the fourth quarter ended December 31, 2003, an increase of $244.8 million or 65.0% as compared to $376.5 million for the fourth quarter ended December 31, 2002. Net loss totaled $10.1 million for the fourth quarter ended December 31, 2003 versus net income of $15.1 million for the same period last year. The net loss in the current period was mainly driven by $28.9 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 (separately identified) and integration (included in operating, administrative and other expenses) related charges of $27.2 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. $27.2 million of merger and integration related charges. Revenue totaled $1.6 billion for the twelve months ended December 31, 2003, which represents a $459.8 million or 39.3% increase over the $1.2 billion of revenue generated in the same period last year. Net loss totaled $34.7 million for the twelve months ended December 31, 2003 versus net income of $18.7 million for the twelve months ended December 31, 2002. The net loss in the current year was mainly due to the previously mentioned amortization expense of $60.4 million as well as merger and integration related charges which totaled $50.4 million for the year ended December 31, 2003. EBITDA for the twelve months ended December 31, 2003 was $132.8 million, a $2.1 million or 1.6% increase from last year's same period results. This increase was achieved despite the deduction of the above-mentioned $50.4 million of merger and integration related charges. On February February: see month. 18, 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 December 31, 2003. To access the call, dial 888-273-9887, access code 720708 (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 612-332-0923). 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 2002 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; capital markets; 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 AND TWELVE MONTHS ENDED DECEMBER 31, 2003 AND 2002
(Dollars in thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2003 2002 2003 2002
-------- -------- ---------- ----------
Revenue $621,257 $376,466 $1,630,074 $1,170,277
-------- -------- ---------- ----------
Costs and expenses:
Cost of services 311,545 183,587 796,408 547,093
Operating,
administrative and
other 234,503 137,122 678,397 501,798
Depreciation and
amortization 39,051 6,507 92,622 24,614
Equity income from
unconsolidated
subsidiaries (5,183) (2,904) (14,365) (9,326)
Merger-related charges 17,022 (14) 36,817 36
-------- -------- ---------- ----------
Total costs and expenses 596,938 324,298 1,589,879 1,064,215
-------- -------- ---------- ----------
Operating income 24,319 52,168 40,195 106,062
Interest income 2,477 599 6,041 3,272
Interest expense 27,697 14,160 87,216 60,501
-------- -------- ---------- ----------
(Loss) income before
provision (benefit) for
income taxes (901) 38,607 (40,980) 48,833
Provision (benefit) for
income taxes 9,183 23,510 (6,276) 30,106
-------- -------- ---------- ----------
Net (loss) income $(10,084) $ 15,097 $ (34,704) $ 18,727
-------- -------- ---------- ----------
EBITDA $ 63,370 $ 58,675 $ 132,817 $ 130,676
-------- -------- ---------- ----------
Operating income margin 3.9% 13.9% 2.5% 9.1%
EBITDA margin 10.2% 15.6% 8.1% 11.2%
-------- -------- ---------- ----------
EBITDA is calculated as
follows:
Three Months Ended Twelve Months Ended
December 31, December 31,
2003 2002 2003 2002
-------- -------- ---------- ----------
Operating income $ 24,319 $ 52,168 $ 40,195 $ 106,062
Add:
Depreciation and
amortization 39,051 6,507 92,622 24,614
-------- -------- ---------- ----------
EBITDA $ 63,370 $ 58,675 $ 132,817 $ 130,676
======== ======== ========== ==========
EBITDA represents earnings before net interest expense, income taxes,
depreciation and amortization. EBITDA margin represents EBITDA divided
by revenue. Management believes that the presentation of EBITDA and
EBITDA margin will enhance a reader's understanding of the Company's
operating performance. EBITDA is also a measure used by senior
management to evaluate the performance of the Company's various lines
of business and for other required or discretionary purposes, such as
the use of EBITDA as a significant component when measuring
performance under the Company's employee incentive programs. EBITDA
should not be considered as an alternative to (i) operating income
determined in accordance with accounting principles generally accepted
in the United States of America, or (ii) operating cash flow
determined in accordance with accounting principles generally accepted
in the United States of America. The Company's calculation of EBITDA
and EBITDA margin may not be comparable to similarly titled measures
reported by other companies.
CB RICHARD ELLIS SERVICES, INC(a)
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)
December 31, December 31,
2003 2002
------------ ------------
Assets:
Cash and cash equivalents $160,872 $79,574
Restricted cash 14,899 -
Warehouse receivable(b) 230,790 63,140
Other current assets 459,139 223,351
Property and equipment, net 113,569 66,634
Goodwill and other intangible assets,
net 948,539 668,219
Deferred compensation assets 76,389 63,642
Other assets 233,411 175,545
----------- -----------
Total assets $2,237,608 $1,340,105
=========== ===========
Liabilities:
Current liabilities, excluding debt $557,372 $288,891
Warehouse line of credit(b) 230,790 63,140
Senior secured term loan tranche A(c) - 38,750
Senior secured term loan tranche B(c) 297,500 182,225
11 1/4% senior subordinated notes 226,173 225,943
9 3/4% senior notes 200,000 -
Other debt(d) 82,907 60,988
Deferred compensation liability 138,037 106,252
Other long-term liabilities 115,780 43,301
----------- -----------
Total liabilities 1,848,559 1,009,490
Minority interest 6,656 5,615
Stockholders' equity 346,921 263,137
16% senior notes of CB Richard Ellis
Group 35,472 61,863
----------- -----------
Total stockholders' equity 382,393 325,000
----------- -----------
Total liabilities and stockholders'
equity $2,237,608 $1,340,105
=========== ===========
(a) CB Richard Ellis Services, Inc. is a wholly owned subsidiary of CB
Richard Ellis Group, Inc.
(b) Includes Freddie MAC loan receivables and related non-recourse
warehouse line of credit of $230.8 million and $63.1 million at
December 31, 2003 and 2002, respectively.
(c) On October 14, 2003, the Company refinanced all of the outstanding
loans under the amended and restated credit agreement it entered
into in connection with the completion of the Insignia
Acquisition. The Tranche A and Tranche B facilities were combined
into a single term loan B facility.
(d) Includes non-recourse debt relating to a building investment in
Japan of $43.7 million and $40.0 million at December 31, 2003 and
2002, respectively.
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion