CB Richard Ellis Reports Strong Second Quarter Results.LOS LOS Length of stay, see there ANGELES--(BUSINESS WIRE)--Aug. 11, 1998-- -- 62% revenue and 102% EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become gains -- $0.38 adjusted EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. , up 36% -- Strong revenue growth across all business segments 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. (NYSE NYSE See: New York Stock Exchange :CBG CBG corticosteroid-binding globulin. ), the world-market leader in real estate services, Tuesday Tuesday: see week. announced second quarter consolidated revenue gains of 62% and 102% growth in earnings before interest, income taxes, depreciation and amortization ("EBITDA"), and before merger-related and one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charges. For the quarter, adjusted diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of increased 36% to $0.38 per share. Chairman and Chief Executive Officer Jim Didion Noun 1. Didion - United States writer (born in 1934) Joan Didion commented: "We are delighted with these results. We have continued to produce strong financial results owing to owing to prep. Because of; on account of: I couldn't attend, owing to illness. owing to prep → debido a, por causa de the considerable advances we have made in expanding our global presence, both organically and through acquisitions. "The potential reach of our real estate product and service offerings is unprecedented, now that we have combined our operations with REI Limited (REI) and Hillier Hillier is a surname, and may refer to:
adj. Of considerable size; fairly large. siz  a·ble·ness n. market potential of our global franchise.
"Our commonly owned network of company offices, integrated management and consistent service capabilities across all business lines and geographic locations distinguish us considerably," Didion continued. "While we are delighted with our performance this quarter and are confident of producing a strong year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. , we expect our future 1998 results to be moderately impacted by added investments in building our infrastructure, particularly in our international facilities management The management of a user's computer installation by an outside organization. All operations including systems, programming and the datacenter can be performed by the facilities management organization on the user's premises. business, and from a softening softening /sof·ten·ing/ (sof´en-ing) malacia. softening a change of consistency, with loss of firmness or hardness. in business from our Asian operations." Didion noted results this quarter relative to last year include the contribution from several acquisitions consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. since the second quarter of last year, most notably REI in April 1998 and Koll KOLL is a commercial-free radio station located in Lonoke, Arkansas, broadcasting to the Little Rock, Arkansas area on 106.3 FM. KOLL airs a Kids format branded as "Nick 106.3". Real Estate Services ("Koll") in August 1997. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Didion, the company anticipates its debt level to increase in the third quarter, due mostly to financing of the previously announced acquisition of London-based Hillier Parker and the purchase of remaining local ownership interests of its 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. and New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. businesses, and to reduce thereafter as the pace of acquisition activity slows. With the global network essentially complete, the company expects to grow primarily through organic expansion rather than acquisitions over the next several years. Didion also noted that the company typically experiences higher operating costs operating costs npl → gastos mpl operacionales during the first six months or so after making an acquisition, which is generally the length of time it takes to integrate a new acquisition into its core operations. Consolidated Results For the quarter ended June June: see month. 30, 1998, consolidated revenues increased 62% to $255.3 million from $158.0 million in the 1997 second quarter. EBITDA excluding merger-related and other nonrecurring charges Nonrecurring Charge An expense occurring only once on a company's financial statement. Notes: An extraordinary item is an example of a nonrecurring charge. Also known as "nonrecurring item". increased 102% to $30.8 million compared with $15.2 million in 1997. The company reported a net loss applicable to common shareholders of $1.2 million, or $0.06 per share, versus net income applicable to common shareholders of $3.9 million, or $0.28 per share, in the comparable year ago quarter. Net income applicable to common shareholders before the effect of merger-related and other nonrecurring charges was $8.0 million, or $0.38 per share, in the second quarter, compared with net income of $3.9 million, or $0.28 per share, during the 1997 second quarter. For the six months ended June 30, 1998, consolidated revenues advanced 47% to $430.4 million, up from $292.0 million in the comparable period of 1997. EBITDA excluding merger-related and other nonrecurring charges improved 71% to $43.3 million from $25.3 million in the comparable period of 1997. Due to merger-related and other one- time charges, the net loss applicable to common shareholders was $31.5 million versus income of $5.1 million in the comparable year-ago period. Net income applicable to common shareholders before the adjustment for the effect of the deemed dividend associated with accounting for the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of its preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. and merger-related and other nonrecurring charges rose to $10.0 million, or $0.49 per share, from $5.1 million, or $0.37 per share, in the corresponding prior year period. Second quarter results include April 18 (date of acquisition) through June 30, 1998 results for REI, and the year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. results contain the full six month contribution from Koll which was not included in 1997. Additionally, the one-time charges totaling $16.6 million consist of costs associated with the REI acquisition and integration ($3.8 million); the change in the company's name to CB Richard Ellis ($4.8 million); and the write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. in the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of the company's headquarters building ($8.0 million), all of which were anticipated. Market Fundamentals are Strong The economy of the United States The United States economy has the world's largest gross domestic product (GDP), $13.21 trillion in 2006. It is a mixed economy where corporations and other private firms make the majority of microeconomic decisions while being regulated by the government. , CB Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a Ellis's primary market, remains strong and real estate markets across the country continue to be healthy and perform well. Representative of the industry's strength in the office space sector, the national vacancy VACANCY. A place which is empty. The term is principally applied to cases where an office is not filled. 2. By the constitution of the United States, the president has the power to fill up vacancies that may happen during the recess of the senate. rate dropped to 9% for the second quarter, compared with 11% for the same period last year, according to Torto Wheaton Wheaton. 1 City (1990 pop. 51,464), seat of Du Page co., NE Ill., a residential suburb of Chicago; inc. 1859. It is a religious center and the headquarters of the Theosophical Society of America. Many evangelical organizations are also based there. Research, the company's Boston-based real estate econometric e·con·o·met·rics n. (used with a sing. verb) Application of mathematical and statistical techniques to economics in the study of problems, the analysis of data, and the development and testing of theories and models. forecasting and consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a . Demand for office space fueled the declining vacancy rate in the U.S., with about 19 million square feet absorbed during the quarter. The outlook for 1998 continues to be favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. , with strong economic activity giving rise to space demand coupled with limited new supply. Segment Results For the quarter, each business segment produced strong revenue growth along with steady gains in EBITDA, except for 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. where investments made in building its infrastructure both in the U.S. and abroad resulted in lower EBITDA compared with last year. The strong revenue growth highlights the success of each business unit's growth strategy, the synergies each enjoys from the company's vertically integrated global positioning and favorable industry conditions. According to Didion, a strong economy with the exception of weakened weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak en·er n. economic conditions in Asia, heightened cross-border investment
activity and increased outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. by multinational corporations
n. (used with a sing. verb) The study of the overall aspects and workings of a national economy, such as income, output, and the interrelationship among diverse economic sectors. trends which helped produce CB Richard Ellis's robust returns. Didion stated, "We continue to be quite pleased with our performance in each business area, along with the milestones each has made towards achieving our longer-term goals." Relative Gains For the quarter ended June 30, 1998, CB Richard Ellis generated revenue gains of 47% in Brokerage Services, which grew to $142.6 million; 172% in Corporate Services, which increased to $17.3 million; 163% in Management Services, which advanced to $29.0 million; and 52% in Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , which rose to $66.3 million. Brokerage Services (56% of revenues; grew 47%) Brokerage Services (commercial property sales and leasing), the company's core business, contributed 56% to consolidated revenues for the quarter. The company reported 47% higher brokerage revenues versus the 1997 second quarter, fueled by a much improved real estate market in many parts of the world, which has driven up rents and sales prices, and the acquisition of REI. EBITDA advanced 138% for the quarter, while EBITDA margins improved considerably to 16% in the current period from 10% in the comparable year-ago quarter. Brett White Brett White (born April 8 1982 in Cooma, New South Wales) is an Australian professional rugby league footballer. He plays for the Melbourne Storm in the National Rugby League. , President, Brokerage Services, North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , noted, "We have continued to flourish as a result of our market leading presence across nearly every major market around the globe and our sizable, established client base. Taken together, these competitive strengths have enabled us to benefit from a strong real estate environment. "The significant increases in revenue and EBITDA being enjoyed by Brokerage Services can be attributed to escalating rent and sale prices, as well as the quality of our people and their ability to continue to generate, quarter over quarter, impressive gains in individual and team production." According to White, as transaction volume has increased, the company has benefited from improved economies of scale, reflected in part by an increase in the amount of revenue generated per producer, resulting in the 62% improvement in the segment's EBITDA margin and greater profits flowing through to the bottom line. Stated White, "The momentum we have established so far this year should be sustainable through year-end." Corporate Services (7% of revenues; grew 172%) Corporate Services provides transaction management, advisory services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal and facilities management on a regional, national and international basis, and constitutes a "one-stop one-stop adj. Relating to or providing a comprehensive selection of goods or services at a single location: one-stop shopping; a one-stop health-care center. " shop for major corporate clients. Revenues advanced 172% to represent 7% of total revenues. The bulk of the revenue growth is attributable to the inclusion of the Koll operations this year, which were not included in the year earlier period. CB Richard Ellis has about 80 million square feet of pure corporate facilities under management and serves over 125 major multinational and national corporate clients in this sector through long term engagement agreements. EBITDA for the quarter was $(0.9) million, representing a decline from last year mostly due to ongoing infrastructure investments made to expand corporate services business based on the combination with REI. Gary Beban Gary Joseph Beban (born August 5, 1946 in Redwood City, California) is a former American football player. Son of an Italian-born mother and a first generation Croatian-American father, Beban won the 1967 Heisman Trophy, the most prestigious award in college football, and the , Senior Executive Managing Director, Global Corporate Advisory Services, said, "Our status as the only service provider able to offer a seamless global capability to corporate clients worldwide has begun to benefit us as we are seeing a multitude of opportunities to expand our business worldwide and enhance our revenue streams. "More and more, large corporations from all parts of the world are outsourcing their real estate service needs and many are turning to CB Richard Ellis. By focusing on being one of the most highly regarded and well-known well-known adj. 1. Widely known; familiar or famous: a well-known performer. 2. Fully known: well-known facts. full-service providers in the industry, with a global brand name, we are ideally poised to be the major recipient of this burgeoning source of new business." Management Services (11% of revenues; grew 163%) Management Services offers an extensive range of property management services and manages 352 million square feet worldwide for hundreds of clients. Revenue advanced 163% to $29.0 million, primarily as a result of the Koll acquisition, compared with $11.0 million in the previous second quarter, to represent 11% of total revenues. EBITDA for the quarter grew at a slower pace, 66% to $1.9 million, reflecting costs associated with new initiatives to broaden client services and revenue sources. Commented Jana Turner, President, Institutional Management Services, North America, "Our strong revenue growth was largely due to the acquisition of the Koll portfolio, coupled with increased sales and leasing activities within the aggregate portfolio. At our managed properties, the strongest contribution came from the western parts of the U.S., where we enjoy a preeminent pre·em·i·nent or pre-em·i·nent adj. Superior to or notable above all others; outstanding. See Synonyms at dominant, noted. [Middle English, from Latin prae market position. "Results from the other regions were healthy as well, though these are territories where our presence is less dominant and where we are aggressively building our portfolio through market share growth and via acquisitions." Turner identified the company's recent purchase of Mathews Click & Associates, an Ohio Valley-based full service real estate company, as an example of an acquisition made to enhance geographic market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" and deepen deep·en tr. & intr.v. deep·ened, deep·en·ing, deep·ens To make or become deep or deeper. deepen Verb to make or become deeper or more intense Verb 1. the group's service lines. According to Turner, Mathews Click will favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impact future results. Turner added, "Part of our growth strategy, in addition to acquisitions, is to generate fee income from non-traditional revenue sources, including Service Direct Advantage (a tenant services program), our strategic engineering group and our construction design and management company." Financial Services (26% of revenues; grew 52%) Financial Services provides a range of products and services to Wall Street, institutional, corporate and offshore investors. During the quarter, strong growth was realized across all its service areas, including investment property acquisitions and sales, mortgage banking through L.J. Melody melody, succession of single tones of varying pitch. Melody is the linear aspect of music, in contrast to harmony, the chordal aspect, which results from the simultaneous sounding of tones. & Company, valuation/appraisal, asset management through CB Richard Ellis Investors (formerly Westmark Realty realty n. a short form of "real estate." (See: real estate) REALTY. An abstract of real, as distinguished from personalty. Realty relates to lands and tenements, rents or other hereditaments. Vide Real Property. Advisors), and real estate market research. Key products (hard-asset funds, loan funds, and mutual funds) also experienced steady growth, both in terms of the value of existing funds and expanded product offerings. Revenue from the Financial Services segment contributed 26% to consolidated quarterly revenues and increased 52% during the second quarter versus the comparable year-ago quarter. EBITDA advanced 61% for the quarter over last year's second quarter. Ray Wirta, Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of the company and Chairman, North America, stated, "We are pleased with how our financial services business has grown so far this year and look for continued gains ahead, especially as we increase our offshore marketing activities and introduce our U.S. clients to our extensive offshore capabilities thanks to the combination with REI." Continued Wirta, "This year, we have benefited from a strong mortgage banking environment and a surge in appraisal activity, reflecting the boom in many real estate markets fueled by lower interest rates and declining vacancy rates." Wirta indicated the company's expanded market presence geographically was also an important factor contributing to its growth. Bearing in mind the three acquisitions of mortgage companies completed so far this year, Wirta pointed out the operating and financial benefits from these transactions have yet to take hold. CB Richard Ellis is the world's leading real estate services company. With headquarters 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. and more than 9,000 employees worldwide, the company serves real estate owners, investors and occupiers through more than 200 principal offices in 29 countries. Services include property sales and leasing, property management, corporate advisory services and facilities management, mortgage banking, investment management, capital markets, appraisal/valuation and market research. CB Commercial and REI Limited, which merged in April 1998 to form CB Richard Ellis, had combined 1997 revenues of $848 million. For more information on CB Richard Ellis Services (via facsimile and at no cost), call 800/PRO-INFO and dial client code CBG. If calling from 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. , dial 732/544-2850. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This release may contain forward-looking statements as well as historical information. Forward-looking statements, which are included 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 the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, may involve known and unknown risks, uncertainties and other factors that may cause the company's actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this release. Such forward-looking statements speak only as of the date of this release. The company expressly disclaims any obligation to update or revise any forward-looking statements found herein to reflect any changes in company expectations or results or any change in events. -0-
CB RICHARD ELLIS SERVICES, INC.
OPERATING RESULTS
For the Three Months Ended June 30, 1998
with Comparative Figures for the Similar Period in 1997
(Dollars in thousands except per share data)
(Unaudited)
Quarter ended June 30,
Consolidated 1998 1997 Difference % Change
Revenue $ 255,267 $ 157,958 $ 97,309 61.6%
Costs and expenses:
Commissions, fees and
other incentives 113,368 82,521 30,847 37.4%
Operating, administrative
and other 111,063 60,206 50,857 84.5%
Merger-related and
other nonrecurring
charges 16,585 0 16,585 n/a
Depreciation and
amortization 7,427 3,053 4,374 143.3%
Operating income 6,824 12,178 (5,354) (44.0)%
Interest income 538 587 (49) (8.3)%
Interest expense 7,410 4,104 3,306 80.6%
Income (loss)
before provision
for income tax (48) 8,661 (8,709) (100.6)%
Provision for
income tax 1,132 3,795 (2,663) (70.2)%
Net income (loss) $ (1,180) $ 4,866 $ (6,046) (124.2)%
Dividend on
preferred stock $ 0 $ 1,000 $ (1,000) n/a
Net income (loss)
applicable to
common
stockholders $ (1,180) $ 3,866 $ (5,046) (130.5)%
Basic earnings
(loss) per
share $ (0.06) $ 0.29 $ (0.35) (120.7)%
Number of shares
used in
computing basic
earnings (loss)
per share 20,146,007 13,410,120 6,735,887 50.2%
Diluted earnings
(loss) per share $ (0.06) $ 0.28 $ (0.34) (121.4)%
Number of shares
used in computing
diluted earnings
(loss) per share 20,146,007 14,010,146 6,135,861 43.8%
Adjusted diluted
earnings per
share (a) $ 0.38 $ 0.28 $ 0.10 35.7%
Number of shares
used in computing
adjusted diluted
earnings per
share (a) 20,767,622 14,010,146 6,757,476 48.2%
EBITDA excluding
merger-related and
other nonrecurring
charges $ 30,836 $ 15,231 $ 15,605 102.5%
(a) Excludes the effect of merger-related and other nonrecurring
charges, net of tax effect
CB RICHARD ELLIS SERVICES, INC.
OPERATING RESULTS BY BUSINESS SEGMENT
For the Three Months Ended June 30, 1998
with Comparative Figures for the Similar Period in 1997
(Dollars in thousands)
(Unaudited)
Quarter ended June 30,
Brokerage Services 1998 1997 Difference % Change
Revenue $142,610 $ 96,843 $ 45,767 47.3%
Costs and expenses:
Commissions, fees
and other incentives 72,827 54,984 17,843 32.5%
Operating, administrative
and other 47,120 32,344 14,776 45.7%
Depreciation and
amortization 2,524 1,422 1,102 77.5%
Operating income $ 20,139 $ 8,093 $ 12,046 148.8%
EBITDA $ 22,663 $ 9,515 $ 13,148 138.2%
EBITDA margin 15.9% 9.8%
EBITDA as a percent
of consolidated EBITDA 73.5% 62.5%
Corporate Services
Revenue $ 17,294 $ 6,364 $ 10,930 171.7%
Costs and expenses:
Commissions, fees
and other incentives 6,818 3,604 3,214 89.2%
Operating, administrative
and other 11,381 2,650 8,731 329.5%
Depreciation and
amortization 611 59 552 935.6%
Operating income
(loss) $ (1,516) $ 51 $(1,567) (3,072.5)%
EBITDA $ (905) $ 110 $(1,015) (922.7)%
EBITDA margin -5.2% 1.7%
EBITDA as a percent
of consolidated EBITDA -2.9% 0.7%
Management Services
Revenue $ 29,017 $ 11,022 $ 17,995 163.3%
Costs and expenses:
Commissions, fees
and other incentives 6,948 4,504 2,444 54.3%
Operating, administrative
and other 20,212 5,397 14,815 274.5%
Depreciation and
amortization 1,369 163 1,206 739.9%
Operating income $ 488 $ 958 $ (470) (49.1)%
EBITDA $ 1,857 $ 1,121 $ 736 65.7%
EBITDA margin 6.4% 10.2%
EBITDA as a percent
of consolidated EBITDA 6.0% 7.4%
Financial Services
Revenue $ 66,346 $ 43,729 $ 22,617 51.7%
Costs and expenses:
Commissions, fees and
other incentives 26,775 19,429 7,346 37.8%
Operating, administrative
and other 32,350 19,815 12,535 63.3%
Depreciation and
amortization 2,923 1,409 1,514 107.5%
Operating income $ 4,298 $ 3,076 $ 1,222 39.7%
EBITDA $ 7,221 $ 4,485 $ 2,736 61.0%
EBITDA margin 10.9% 10.3%
EBITDA as a percent
of consolidated EBITDA 23.4% 29.4%
Merger-related and other
nonrecurring charges $ 16,585 $ --- $ 16,585
CB RICHARD ELLIS SERVICES, INC.
OPERATING RESULTS
For the Six Months Ended June 30, 1998
with Comparative Figures for the Similar Period in 1997
(Dollars in thousands except per share data)
(Unaudited)
Six months ended June 30,
Consolidated 1998 1997 Difference % Change
Revenue $ 430,411 $ 292,022 $ 138,389 47.4%
Costs and expenses:
Commissions, fees
and other incentives 197,082 150,128 46,954 31.3%
Operating, administrative
and other 190,021 116,596 73,425 63.0%
Merger related and
other nonrecurring
charges 16,585 0 16,585 n/a
Depreciation and
amortization 12,749 6,174 6,575 106.5%
Operating income 13,974 19,124 (5,150) (26.9)%
Interest income 1,265 1,219 46 3.8%
Interest expense 11,731 7,849 3,882 49.5%
Income before provision
for income tax 3,508 12,494 (8,986) (71.9)%
Provision for income
tax 2,723 5,355 (2,632) (49.2)%
Net income $ 785 $ 7,139 $ (6,354) (89.0)%
Dividend on preferred
stock $ 32,273(a) $ 2,000 $ 30,273 n/a
Net income (loss)
applicable to
common stockholders $ (31,488) $ 5,139 $(36,627) (712.7)%
Basic earnings (loss)
per share $ (1.61) $ 0.38 $ (1.99) (523.7)%
Number of shares used
in computing basic
earnings (loss)
per share 19,519,371 13,354,101 6,165,270 46.2%
Diluted earnings
(loss) per share $ (1.61) $ 0.37 $ (1.98) (535.1)%
Number of shares used
in computing diluted
earnings per share 19,519,371 13,952,451 5,566,920 39.9%
Adjusted diluted
earnings per share (b) $ 0.49 $ 0.37 $ 0.12 32.4%
Number of shares used
in computing adjusted
diluted earnings per
share (b) 20,142,838 13,952,451 6,190,387 44.4%
EBITDA excluding
merger-related and
other nonrecurring
charges $ 43,308 $ 25,298 $ 18,010 71.2%
(a) Deemed dividend associated with the repurchase of preferred
stock
(b) Excludes the effect of deemed dividend associated with the
repurchase of preferred stock and merger-related and other
nonrecurring charges, net of tax effect
CB RICHARD ELLIS SERVICES, INC.
OPERATING RESULTS BY BUSINESS SEGMENT
For the Six Months Ended June 30,1998
with Comparative Figures for the Similar Period in 1997
(Dollars in thousands)
(Unaudited)
Six months ended June 30,
Brokerage Services 1998 1997 Difference % Change
Revenue $ 235,579 $ 179,182 $ 56,397 31.5%
Costs and expenses:
Commissions, fees and
other incentives 124,760 100,697 24,063 23.9%
Operating, administrative
and other 81,181 62,532 18,649 29.8%
Depreciation and
amortization 4,026 2,915 1,111 38.1%
Operating income $ 25,612 $ 13,038 $ 12,574 96.4%
EBITDA $ 29,638 $ 15,953 $ 13,685 85.8%
EBITDA margin 12.6% 8.9%
EBITDA as a percent
of consolidated EBITDA 68.4% 63.1%
Corporate Services
Revenue $ 29,774 $ 12,254 $ 17,520 143.0%
Costs and expenses:
Commissions, fees and
other incentives 11,743 6,879 4,864 70.7%
Operating, administrative
and other 19,648 5,167 14,481 280.3%
Depreciation and
amortization 1,117 126 991 786.5%
Operating income (loss) $ (2,734) $ 82 $ (2,816) (3,434.1)%
EBITDA $ (1,617) $ 208 $ (1,825) (877.4)%
EBITDA margin -5.4% 1.7%
EBITDA as a percent
of consolidated EBITDA -3.7% 0.8%
Management Services
Revenue $ 51,478 $ 21,884 $ 29,594 135.2%
Costs and expenses:
Commissions, fees and
other incentives 13,350 9,116 4,234 46.4%
Operating, administrative
and other 34,282 10,877 23,405 215.2%
Depreciation and
amortization 2,570 316 2,254 713.3%
Operating income $ 1,276 $ 1,575 $ (299) (19.0)%
EBITDA $ 3,846 $ 1,891 $ 1,955 103.4%
EBITDA margin 7.5% 8.6%
EBITDA as a percent
of consolidated EBITDA 8.9% 7.5%
Financial Services
Revenue $113,580 $ 78,702 $ 34,878 44.3%
Costs and expenses:
Commissions, fees and
other incentives 47,229 33,436 13,793 41.3%
Operating, administrative
and other 54,910 38,020 16,890 44.4%
Depreciation and
amortization 5,036 2,817 2,219 78.8%
Operating income $ 6,405 $ 4,429 $ 1,976 44.6%
EBITDA $ 11,441 $ 7,246 $ 4,195 57.9%
EBITDA margin 10.1% 9.2%
EBITDA as a percent
of consolidated EBITDA 26.4% 28.6%
Merger-related and other
nonrecurring charges $ 16,585 $ --- $ 16,585
CB RICHARD ELLIS SERVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(Dollars in thousands)
June 30, Dec. 31,
1998 1997
(Unaudited)
Assets
Cash and cash equivalents $ 41,583 $ 47,181
Other current assets 160,997 100,518
Property and equipment, net 54,034 50,309
Goodwill and other intangible
assets, net 380,054 239,384
Other assets, net 67,466 65,117
Total assets $ 704,134 $ 502,509
Liabilities and Stockholders' Equity
Current maturities of
long-term debt $ 7,836 $ 4,679
Other current liabilities 175,317 150,346
Long-term debt, less current
maturities 319,174 146,273
Other long-term liabilities 43,333 35,768
Total liabilities 545,660 337,066
Minority Interest 5,340 7,672
Stockholders' Equity
Contributed capital 324,013 328,253
Accumulated deficit (170,879) (170,482)
Total stockholders' equity 153,134 157,771
Total liabilities and
stockholders' equity $ 704,134 $ 502,509
CONTACT: CB Richard Ellis Services Inc., Los Angeles Cary Brazeman, 213/613-3227 or The Financial Relations Board Karen Taylor Karen Taylor is an English comedienne from Barrow-in-Furness, Cumbria. She is a former finalist in the prestigious Daily Telegraph Open Mic Award[1] and has fronted her own sketch show on BBC Three, entitled Touch Me, I'm Karen Taylor. , 310/442-0599 (general info) Stephanie Mishra, 415/986-1591 (investors) |
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