CBRE Group flexing its global muscles.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. reported revenue of $575.0 million and net income of $11.9 million, or $0.16 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, for the third quarter of 2004. For the same period last year, the Company reported revenue of $423.4 million and a net loss of $28.4 million, or $0.49 net loss per diluted share. Excluding one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. items primarily related to the early repayment of debt and the July 2003 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, the Company would have earned net income of $29.7 million (1), or $0.40 per diluted share, compared with earnings of $2.3 million, or $0.04 per diluted share, in the third quarter of 2003. Total revenue increased 35.8% to $575.0 million compared with $423.4 million for the third quarter of 2003. Generally improved U.S. economic conditions coupled with market share gains fueled organic revenue growth of approximately 24% as sales, leasing and consulting fees rose sharply from the year-earlier quarter. Additionally, revenue growth was aided by full quarter contributions from the Insignia acquisition (2). Earnings Before Interest, Taxes, Depreciation, and Amortization Earnings before interest, taxes, depreciation, and amortization (EBITDA) A financial measure defined as revenues less cost of goods sold and selling, general, and administrative expenses. (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 ) totaled $61.8 million for the third quarter ended September 30, 2004, an increase of $41.1 million, or 198.6%, from the same period last year. The increase was driven primarily by strong revenue growth as well as lower merger-related costs, which significantly impacted third quarter 2003 results. The third quarter of 2004 reflected final merger-related costs of $4.0 million primarily related to a facility vacated during the quarter. In line with the Company's strategy to reduce debt, in July of 2004 the Company used the remaining net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). received from its initial public offering to pay down a portion of its high interest rate debt, including $70.0 million in aggregate principal amount of its 9 3/4% senior notes due 2010 and $38.3 million in aggregate principal amount of its 16% senior notes due 2011. Premium costs associated with the repayments as well as the related write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of unamortized deferred financing costs and unamortized discount resulted in a $17.1 million loss on extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt in the current quarter. During the third quarter of 2003, the Company incurred a $6.8 million loss on extinguishment of debt related to the write-off of unamortized deferred financing fees associated with a prior credit facility, which was replaced in conjunction with the Insignia acquisition. Interest expense totaled $14.9 million for the current year quarter, a decrease of $6.1 million, or 29.0%, compared to the same period last year. The decrease was driven by the interest savings as a result of debt repayments during the fourth quarter of 2003 and throughout 2004. The Company expects to achieve annual cash interest savings in 2005 of approximately $16.0 million as a result of its de-leveraging efforts in 2004. "Our third quarter results demonstrate the power of our global real estate services platform and validate To prove something to be sound or logical. Also to certify conformance to a standard. Contrast with "verify," which means to prove something to be correct. For example, data entry validity checking determines whether the data make sense (numbers fall within a range, numeric data our growth strategy," said Ray Wirta, chief executive officer of CB Richard Ellis. "Our strong performance was fueled by double-digit organic revenue growth, improved market fundamentals in the U.S. and overseas and the Insignia acquisition. "U.S. investment activity remains at record levels, despite modestly higher interest rates, as more capital sources are attracted to real estate." |
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