Solid growth across all service lines and segments
Re-aligned operating segments to better reflect value and growth
Third quarter and year to date operating highlights:
| Three months ended | Nine months ended | ||||||||||||
| September 30 | September 30 | ||||||||||||
| (in millions of US$, except EPS) | 2024 | 2023 | 2024 | 2023 | |||||||||
| Revenues | $ | 1,179.1 | $ | 1,056.0 | $ | 3,320.4 | $ | 3,100.0 | |||||
| Adjusted EBITDA (note 1) | 154.6 | 144.9 | 419.0 | 396.6 | |||||||||
| Adjusted EPS (note 2) | 1.32 | 1.19 | 3.46 | 3.36 | |||||||||
| GAAP operating earnings | 109.7 | 70.9 | 267.8 | 168.3 | |||||||||
| GAAP diluted net earnings (loss) per share | 0.73 | 0.53 | 1.73 | (0.04 | ) | ||||||||
TORONTO, Nov. 05, 2024 (GLOBE NEWSWIRE) -- Colliers International Group Inc. (NASDAQ and TSX: CIGI) ("Colliers" or the "Company") today announced operating and financial results for the third quarter ended September 30, 2024. All amounts are in US dollars.
For the third quarter ended September 30, 2024, revenues were $1.18 billion, up 12% (11% in local currency) and Adjusted EBITDA (note 1) was $154.6 million, up 7% (6% in local currency) versus the prior year quarter. Adjusted EPS (note 2) was $1.32, up 11% from $1.19 in the prior year quarter. Third quarter adjusted EPS would have been approximately $0.01 lower excluding foreign exchange impacts. The GAAP operating earnings were $109.7 million as compared to $70.9 million in the prior year quarter. The GAAP diluted net earnings per share were $0.73, up 38% from $0.53 in the prior year quarter. The third quarter GAAP diluted net earnings per share EPS would have been approximately $0.01 lower excluding foreign exchange impacts.
For the nine months ended September 30, 2024, revenues were $3.32 billion, up 7% (7% in local currency) and adjusted EBITDA (note 1) was $419.0 million, up 6% (6% in local currency) versus the prior year period. Adjusted EPS (note 2) was $3.46, relative to $3.36 in the prior year period. Adjusted EPS were not significantly impacted by changes in foreign exchange rates. The GAAP operating earnings were $267.8 million compared to $168.3 million in the prior year period, favourably impacted by the reversal of contingent consideration expense related to an acquisition. The GAAP diluted net earnings per share were $1.73 compared to a diluted net loss per share of $0.04 in the prior year period. The GAAP diluted net earnings per share were not significantly impacted by changes in foreign exchange rates.
As previously announced, this quarter, Colliers re-aligned its operating segments to better reflect the value and growth potential of its three complementary engines - Real Estate Services, Engineering, and Investment Management. The Real Estate Services segment encompasses the former Americas, EMEA, and Asia Pacific regions, excluding engineering and project management, which are now reported within the new Engineering segment. The Investment Management segment remains unchanged. Comparative periods have been recast to reflect this revised segmentation.
"This quarter, Colliers delivered solid growth across all three segments," said Jay S. Hennick, Chairman & CEO of Colliers. "Engineering grew by 21%, driven by strategic acquisitions. In Real Estate Services, Capital Markets revenues rose a strong 17%, exceeding expectations. Investment Management revenue, excluding pass-through performance fees, was up slightly though fundraising remained below expectations. AUM was up $2.4 billion during the quarter reaching $98.8 billion, up from $96.4 billion on June 30, 2024."
"We completed the acquisition of Englobe during the quarter, creating a substantial new growth platform in Canada. After the quarter, we further added GWAL in Canada, and Pritchard Francis and TTM in Australia. With a robust M&A pipeline, we are well positioned to continue growing and strengthening our operations for the long-term."
"Over the past decade, step by step, Colliers has transformed into a uniquely differentiated global professional services and investment management firm. We have relentlessly focused on expanding and diversifying our global operations, while adding new growth engines that deliver recurring revenue streams. Today, these recurring revenues contribute over 70% of our earnings, bringing unprecedented balance, resilience and predictability - all of which drive greater shareholder value."
"With experienced leadership, significant inside ownership, and a proven 30-year track record of delivering 20% annualized returns, we are well positioned to sustain mid-to high-single digit growth going forward. As we enter 2025, we anticipate additional upside from an improving capital markets environment, expanded investment strategies and capital raising opportunities in Investment Management and continued incremental growth through acquisitions across all three segments," he concluded.
About Colliers
Colliers (NASDAQ, TSX: CIGI) is a leading global diversified professional services company, specializing in commercial real estate services, engineering consultancy and investment management. With operations in 70 countries, our 22,000 enterprising professionals provide exceptional service and expert advice to clients. For nearly 30 years, our experienced leadership - with substantial inside ownership - has consistently delivered approximately 20% compound annual investment returns for shareholders. With annual revenues exceeding $4.5 billion and $99 billion of assets under management, Colliers maximizes the potential of property, infrastructure and real assets to accelerate the success of our clients, investors and people. Learn more at corporate.colliers.com, X @Colliers or LinkedIn.
Consolidated Revenues by Line of Service
| Three months ended | Change | Change | Nine months ended | Change | Change | ||||||||||||||||
| (in thousands of US$) | September 30 | in US$ % | in LC % | September 30 | in US$ % | in LC % | |||||||||||||||
| (LC = local currency) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||
| Investment Management (1) | $ | 127,405 | 118,717 | 7 | % | 7 | % | $ | 375,977 | $ | 358,323 | 5 | % | 5 | % | ||||||
| Engineering | $ | 316,624 | 259,925 | 22 | % | 21 | % | $ | 816,023 | $ | 727,995 | 12 | % | 11 | % | ||||||
| Leasing | 266,282 | 249,647 | 7 | % | 6 | % | 798,119 | 744,649 | 7 | % | 7 | % | |||||||||
| Capital Markets | 188,196 | 160,293 | 17 | % | 17 | % | 509,594 | 495,049 | 3 | % | 3 | % | |||||||||
| Outsourcing | 280,454 | $ | 267,338 | 5 | % | 5 | % | 820,369 | 773,590 | 6 | % | 6 | % | ||||||||
| Real Estate Services | $ | 734,932 | 677,278 | 9 | % | 8 | % | $ | 2,128,082 | $ | 2,013,288 | 6 | % | 6 | % | ||||||
| Corporate | 98 | 112 | NM | NM | 325 | 367 | NM | NM | |||||||||||||
| Total revenues | $ | 1,179,059 | $ | 1,056,032 | 12 | % | 11 | % | $ | 3,320,407 | $ | 3,099,973 | 7 | % | 7 | % | |||||
| (1) Investment Management local currency revenues, excluding pass-through performance fees (carried interest), were up 1% and 3% for the three and nine-month periods ended September 30, 2024, respectively. | |||||||||||||||||||||
Third quarter consolidated revenues were up 11% on a local currency basis driven by robust growth across all service lines, particularly Engineering and Capital Markets. Consolidated internal revenue growth measured in local currencies was 5% (note 4) versus the prior year quarter.
For the nine months ended September 30, 2024, consolidated revenues increased 7% on a local currency basis, led by Engineering. Consolidated internal revenues measured in local currencies were up 4% (note 4).
Segmented Third Quarter Results
Real Estate Services revenues totalled $734.9 million, up 9% (8% in local currency) versus $677.3 million in the prior year quarter on growth across all services lines, as expected. Capital Markets transaction volumes were up meaningfully against a low base in the prior year, particularly in the Americas and Asia Pacific. Leasing continued to build on last quarter's momentum, notably in EMEA and the US with several large office leasing transactions during the quarter. Adjusted EBITDA was $64.7 million, up 8% (7% in local currency) compared to $59.7 million in the prior year quarter, with continued aggressive investment in recruiting in strategic markets. The GAAP operating earnings were $42.4 million, relative to $40.8 million in the prior year quarter.
Engineering revenues totalled $316.6 million, up 22% (21% in local currency) compared to $259.9 million in the prior year quarter. Revenue growth was primarily driven by the recent acquisition of Englobe. Adjusted EBITDA was $39.8 million, up 23% (24% in local currency) compared to $32.3 million in the prior year quarter. The GAAP operating earnings were $19.7 million relative to $20.0 million in the prior year quarter and were primarily impacted by higher intangible asset amortization expense related to recent acquisitions.
Investment Management revenues were $127.4 million, relative to $118.7 million in the prior year quarter, up 7% (7% in local currency) including historical pass-through performance fees of $7.8 million relative to $0.6 million in the prior year quarter. Excluding performance fees, revenue was up 1% (1% in local currency) driven by new investor capital commitments, which were lower than expected - a trend anticipated to continue through year-end. Adjusted EBITDA was $56.0 million, up 1% (1% in local currency) compared to the prior year quarter with continued investments in new products and strategies as well as additional investments to scale fundraising efforts. The GAAP operating earnings were $67.2 million in the quarter versus $20.4 million in the prior year quarter, with the variance largely attributable to the reversal of contingent consideration expense related to a fundraising condition in a recent acquisition. AUM was up $2.4 billion during the quarter to $98.8 billion from $96.4 billion as of June 30, 2024.
Unallocated global corporate costs as reported in Adjusted EBITDA were $5.9 million in the third quarter relative to $2.3 million in the prior year quarter, primarily from additional claim reserves taken in the Company's captive insurance operation. The corporate GAAP operating loss for the quarter was $19.6 million compared to $10.3 million in the prior year quarter.
Outlook for 2024
The Company has revised its 2024 outlook to reflect year-to-date results and updated fundraising expectations in its high-margin Investment Management segment for the remainder of the year.
| 2024 Outlook | ||||
| Measure | Actual 2023 | Prior | Revised | |
| Revenue growth | -3% | +8% to +13% | +8% to +13% | |
| Adjusted EBITDA growth | -6% | +8% to +18% | +8% to +12% | |
| Adjusted EPS growth | -23% | +11% to +21% | +6% to +12% | |
The financial outlook is based on the Company's best available information as of the date of this press release, and remains subject to change based on numerous macroeconomic, geopolitical, health, social and related factors. Continued interest rate volatility and/or lack of credit availability for commercial real estate transactions could materially impact the outlook.
Conference Call
Colliers will be holding a conference call on Tuesday, November 5, 2024 at 11:00 a.m. Eastern Time to discuss the quarter's results. The call, as well as a supplemental slide presentation, will be simultaneously web cast and can be accessed live or after the call at corporate.colliers.com in the Events section.
Forward-looking Statements
This press release includes or may include forward-looking statements. Forward-looking statements include the Company's financial performance outlook and statements regarding goals, beliefs, strategies, objectives, plans or current expectations. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from any future results, performance or achievements contemplated in the forward-looking statements. Such factors include: economic conditions, especially as they relate to commercial and consumer credit conditions and consumer spending, particularly in regions where the business may be concentrated; commercial real estate and real asset values, vacancy rates and general conditions of financial liquidity for real estate transactions; trends in pricing and risk assumption for commercial real estate services; the effect of significant movements in capitalization rates across different asset types; a reduction by companies in their reliance on outsourcing for their commercial real estate needs, which would affect revenues and operating performance; competition in the markets served by the Company; the ability to attract new clients and to retain clients and renew related contracts; the ability to attract new capital commitments to Investment Management funds and retain existing capital under management; the ability to retain and incentivize employees; increases in wage and benefit costs; the effects of changes in interest rates on the cost of borrowing; unexpected increases in operating costs, such as insurance, workers' compensation and health care; changes in the frequency or severity of insurance incidents relative to historical experience; the effects of changes in foreign exchange rates in relation to the US dollar on the Company's Canadian dollar, Euro, Australian dollar and UK pound sterling denominated revenues and expenses; the impact of pandemics on client demand for the Company's services, the ability of the Company to deliver its services and the health and productivity of its employees; the impact of global climate change; the impact of political events including elections, referenda, trade policy changes, immigration policy changes, hostilities, war and terrorism on the Company's operations; the ability to identify and make acquisitions at reasonable prices and successfully integrate acquired operations; the ability to execute on, and adapt to, information technology strategies and trends; the ability to comply with laws and regulations, including real estate investment management and mortgage banking licensure, labour and employment laws and regulations, as well as the anti-corruption laws and trade sanctions; and changes in government laws and policies at the federal, state/provincial or local level that may adversely impact the business.
Additional information and risk factors identified in the Company's other periodic filings with Canadian and US securities regulators are adopted herein and a copy of which can be obtained at www.sedarplus.ca. Forward looking statements contained in this press release are made as of the date hereof and are subject to change. All forward-looking statements in this press release are qualified by these cautionary statements. Except as required by applicable law, Colliers undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Summary financial information is provided in this press release. This press release should be read in conjunction with the Company's consolidated financial statements and MD&A to be made available on SEDAR+ at www.sedarplus.ca.
This press release does not constitute an offer to sell or a solicitation of an offer to purchase an interest in any fund.
Notes
Non-GAAP Measures
1. Reconciliation of net earnings to Adjusted EBITDA
Adjusted EBITDA is defined as net earnings, adjusted to exclude: (i) income tax; (ii) other income; (iii) interest expense; (iv) loss on disposal of operations; (v) depreciation and amortization, including amortization of mortgage servicing rights ("MSRs"); (vi) gains attributable to MSRs; (vii) acquisition-related items (including contingent acquisition consideration fair value adjustments, contingent acquisition consideration-related compensation expense and transaction costs); (viii) restructuring costs and (ix) stock-based compensation expense. We use Adjusted EBITDA to evaluate our own operating performance and our ability to service debt, as well as an integral part of our planning and reporting systems. Additionally, we use this measure in conjunction with discounted cash flow models to determine the Company's overall enterprise valuation and to evaluate acquisition targets. We present Adjusted EBITDA as a supplemental measure because we believe such measure is useful to investors as a reasonable indicator of operating performance because of the low capital intensity of the Company's service operations. We believe this measure is a financial metric used by many investors to compare companies, especially in the services industry. This measure is not a recognized measure of financial performance under GAAP in the United States, and should not be considered as a substitute for operating earnings, net earnings or cash flow from operating activities, as determined in accordance with GAAP. Our method of calculating Adjusted EBITDA may differ from other issuers and accordingly, this measure may not be comparable to measures used by other issuers. A reconciliation of net earnings to Adjusted EBITDA appears below.
| Three months ended | Nine months ended | |||||||||||||||
| September 30 | September 30 | |||||||||||||||
| (in thousands of US$) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net earnings | $ | 69,377 | $ | 29,376 | $ | 155,440 | $ | 63,470 | ||||||||
| Income tax | 21,131 | 18,096 | 55,478 | 38,112 | ||||||||||||
| Other income, including equity earnings from non-consolidated investments | (4,121 | ) | (801 | ) | (5,704 | ) | (5,007 | ) | ||||||||
| Interest expense, net | 23,350 | 24,228 | 62,598 | 71,730 | ||||||||||||
| Operating earnings | 109,737 | 70,899 | 267,812 | 168,305 | ||||||||||||
| Loss on disposal of operations | - | - | - | 2,282 | ||||||||||||
| Depreciation and amortization | 56,073 | 51,163 | 156,426 | 151,449 | ||||||||||||
| Gains attributable to MSRs | (6,151 | ) | (3,199 | ) | (11,178 | ) | (12,286 | ) | ||||||||
| Equity earnings from non-consolidated investments | 4,008 | 685 | 5,240 | 4,371 | ||||||||||||
| Acquisition-related items | (20,931 | ) | 15,366 | (34,212 | ) | 53,502 | ||||||||||
| Restructuring costs | 5,087 | 4,485 | 13,920 | 12,266 | ||||||||||||
| Stock-based compensation expense | 6,813 | 5,513 | 20,947 | 16,726 | ||||||||||||
| Adjusted EBITDA | $ | 154,636 | $ | 144,912 | $ | 418,955 | $ | 396,615 | ||||||||
2. Reconciliation of net earnings and diluted net earnings per common share to adjusted net earnings and Adjusted EPS
Adjusted EPS is defined as diluted net earnings per share adjusted for the effect, after income tax, of: (i) the non-controlling interest redemption increment; (ii) loss on disposal of operations; (iii) amortization expense related to intangible assets recognized in connection with acquisitions and MSRs; (iv) gains attributable to MSRs; (v) acquisition-related items; (vi) restructuring costs and (vii) stock-based compensation expense. We believe this measure is useful to investors because it provides a supplemental way to understand the underlying operating performance of the Company and enhances the comparability of operating results from period to period. Adjusted EPS is not a recognized measure of financial performance under GAAP, and should not be considered as a substitute for diluted net earnings per share from continuing operations, as determined in accordance with GAAP. Our method of calculating this non-GAAP measure may differ from other issuers and, accordingly, this measure may not be comparable to measures used by other issuers. A reconciliation of net earnings to adjusted net earnings and of diluted net earnings per share to adjusted EPS appears below.
Similar to GAAP diluted EPS, Adjusted EPS is calculated using the "if-converted" method of calculating earnings per share in relation to the Convertible Notes, which were fully converted or redeemed by June 1, 2023. As such, the interest (net of tax) on the Convertible Notes is added to the numerator and the additional shares issuable on conversion of the Convertible Notes are added to the denominator of the earnings per share calculation to determine if an assumed conversion is more dilutive than no assumption of conversion. The "if-converted" method is used if the impact of the assumed conversion is dilutive. The "if-converted" method is dilutive for the Adjusted EPS calculation for all periods where the Convertible Notes were outstanding.
| Three months ended | Nine months ended | |||||||||||||||
| September 30 | September 30 | |||||||||||||||
| (in thousands of US$) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net earnings | $ | 69,377 | $ | 29,376 | $ | 155,440 | $ | 63,470 | ||||||||
| Non-controlling interest share of earnings | (14,929 | ) | (14,210 | ) | (35,074 | ) | (38,967 | ) | ||||||||
| Interest on Convertible Notes | - | - | - | 2,861 | ||||||||||||
| Loss on disposal of operations | - | - | - | 2,282 | ||||||||||||
| Amortization of intangible assets | 38,226 | 37,486 | 107,697 | 111,659 | ||||||||||||
| Gains attributable to MSRs | (6,151 | ) | (3,199 | ) | (11,178 | ) | (12,286 | ) | ||||||||
| Acquisition-related items | (20,931 | ) | 15,366 | (34,212 | ) | 53,502 | ||||||||||
| Restructuring costs | 5,087 | 4,485 | 13,920 | 12,266 | ||||||||||||
| Stock-based compensation expense | 6,813 | 5,513 | 20,947 | 16,726 | ||||||||||||
| Income tax on adjustments | (5,383 | ) | (11,853 | ) | (26,116 | ) | (35,046 | ) | ||||||||
| Non-controlling interest on adjustments | (5,060 | ) | (6,207 | ) | (18,331 | ) | (17,133 | ) | ||||||||
| Adjusted net earnings | $ | 67,049 | $ | 56,757 | $ | 173,093 | $ | 159,334 | ||||||||
| Three months ended | Nine months ended | |||||||||||||||
| September 30 | September 30 | |||||||||||||||
| (in US$) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Diluted net earnings (loss) per common share(1) | $ | 0.73 | $ | 0.53 | $ | 1.73 | $ | (0.04 | ) | |||||||
| Interest on Convertible Notes, net of tax | - | - | - | 0.04 | ||||||||||||
| Non-controlling interest redemption increment | 0.34 | (0.21 | ) | 0.68 | 0.56 | |||||||||||
| Loss on disposal of operations | - | - | - | 0.05 | ||||||||||||
| Amortization expense, net of tax | 0.59 | 0.49 | 1.48 | 1.45 | ||||||||||||
| Gains attributable to MSRs, net of tax | (0.07 | ) | (0.04 | ) | (0.13 | ) | (0.15 | ) | ||||||||
| Acquisition-related items | (0.45 | ) | 0.26 | (0.84 | ) | 0.97 | ||||||||||
| Restructuring costs, net of tax | 0.08 | 0.07 | 0.21 | 0.19 | ||||||||||||
| Stock-based compensation expense, net of tax | 0.10 | 0.09 | 0.33 | 0.29 | ||||||||||||
| Adjusted EPS | $ | 1.32 | $ | 1.19 | $ | 3.46 | $ | 3.36 | ||||||||
| Diluted weighted average shares for Adjusted EPS (thousands) | 50,797 | 47,549 | 50,054 | 47,480 | ||||||||||||
| (1) Amounts shown reflect the "if-converted" method's dilutive impact on the adjusted EPS calculation. | ||||||||||||||||
3. Reconciliation of net cash flow from operations to free cash flow
Free cash flow is defined as net cash flow from operating activities plus contingent acquisition consideration paid, less purchases of fixed assets, plus cash collections on AR Facility deferred purchase price less distributions to non-controlling interests. We use free cash flow as a measure to evaluate and monitor operating performance as well as our ability to service debt, fund acquisitions and pay dividends to shareholders. We present free cash flow as a supplemental measure because we believe this measure is a financial metric used by many investors to compare valuation and liquidity measures across companies, especially in the services industry. This measure is not a recognized measure of financial performance under GAAP in the United States, and should not be considered as a substitute for operating earnings, net earnings or cash flow from operating activities, as determined in accordance with GAAP. Our method of calculating free cash flow may differ from other issuers and accordingly, this measure may not be comparable to measures used by other issuers. A reconciliation of net cash flow from operating activities to free cash flow appears below.
| Three months ended | Nine months ended | |||||||||||||||
| September 30 | September 30 | |||||||||||||||
| (in thousands of US$) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net cash provided by operating activities | $ | 107,128 | $ | 42,153 | $ | 110,702 | $ | 8,558 | ||||||||
| Contingent acquisition consideration paid | 69 | 35,655 | 3,107 | 38,646 | ||||||||||||
| Purchase of fixed assets | (16,158 | ) | (19,349 | ) | (45,511 | ) | (60,411 | ) | ||||||||
| Cash collections on AR Facility deferred purchase price | 32,957 | 31,896 | 101,805 | 91,207 | ||||||||||||
| Distributions paid to non-controlling interests | (17,475 | ) | (16,702 | ) | (66,302 | ) | (67,822 | ) | ||||||||
| Free cash flow | $ | 106,521 | $ | 73,653 | $ | 103,801 | $ | 10,178 | ||||||||
4. Local currency revenue and Adjusted EBITDA growth rate and internal revenue growth rate measures
Percentage revenue and Adjusted EBITDA variances presented on a local currency basis are calculated by translating the current period results of our non-US dollar denominated operations to US dollars using the foreign currency exchange rates from the periods against which the current period results are being compared. Percentage revenue variances presented on an internal growth basis are calculated assuming no impact from acquired entities in the current and prior periods. Revenue from acquired entities, including any foreign exchange impacts, are treated as acquisition growth until the respective anniversaries of the acquisitions. We believe that these revenue growth rate methodologies provide a framework for assessing the Company's performance and operations excluding the effects of foreign currency exchange rate fluctuations and acquisitions. Since these revenue growth rate measures are not calculated under GAAP, they may not be comparable to similar measures used by other issuers.
5. Assets under management
We use the term assets under management ("AUM") as a measure of the scale of our Investment Management operations. AUM is defined as the gross market value of operating assets and the projected gross cost of development assets of the funds, partnerships and accounts to which we provide management and advisory services, including capital that such funds, partnerships and accounts have the right to call from investors pursuant to capital commitments. Our definition of AUM may differ from those used by other issuers and as such may not be directly comparable to similar measures used by other issuers.
6. Adjusted EBITDA from recurring revenue percentage
Adjusted EBITDA from recurring revenue percentage is computed on a trailing twelve-month basis and represents the proportion of Adjusted EBITDA (note 1) that is derived from Engineering, Outsourcing and Investment Management service lines. All these service lines represent medium to long-term duration revenue streams that are either contractual or repeatable in nature. Adjusted EBITDA for this purpose is calculated in the same manner as for our debt agreement covenant calculation purposes, incorporating the expected full year impact of business acquisitions and dispositions.
| Colliers International Group Inc. | ||||||||||||||||
| Condensed Consolidated Statements of Earnings (Loss) | ||||||||||||||||
| (in thousands of US$, except per share amounts) | ||||||||||||||||
| Three months | Nine months | |||||||||||||||
| ended September 30 | ended September 30 | |||||||||||||||
| (unaudited) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenues | $ | 1,179,059 | $ | 1,056,032 | $ | 3,320,407 | $ | 3,099,973 | ||||||||
| Cost of revenues | 712,044 | 638,659 | 2,005,351 | 1,865,569 | ||||||||||||
| Selling, general and administrative expenses | 322,136 | 279,945 | 925,030 | 858,866 | ||||||||||||
| Depreciation | 17,847 | 13,677 | 48,729 | 39,790 | ||||||||||||
| Amortization of intangible assets | 38,226 | 37,486 | 107,697 | 111,659 | ||||||||||||
| Acquisition-related items (1) | (20,931 | ) | 15,366 | (34,212 | ) | 53,502 | ||||||||||
| Loss on disposal of operations | - | - | - | 2,282 | ||||||||||||
| Operating earnings | 109,737 | 70,899 | 267,812 | 168,305 | ||||||||||||
| Interest expense, net | 23,350 | 24,228 | 62,598 | 71,730 | ||||||||||||
| Equity earnings from non-consolidated investments | (4,008 | ) | (685 | ) | (5,240 | ) | (4,371 | ) | ||||||||
| Other income | (113 | ) | (116 | ) | (464 | ) | (636 | ) | ||||||||
| Earnings before income tax | 90,508 | 47,472 | 210,918 | 101,582 | ||||||||||||
| Income tax | 21,131 | 18,096 | 55,478 | 38,112 | ||||||||||||
| Net earnings | 69,377 | 29,376 | 155,440 | 63,470 | ||||||||||||
| Non-controlling interest share of earnings | 14,929 | 14,210 | 35,074 | 38,967 | ||||||||||||
| Non-controlling interest redemption increment | 17,221 | (9,947 | ) | 33,758 | 26,393 | |||||||||||
| Net earnings (loss) attributable to Company | $ | 37,227 | $ | 25,113 | $ | 86,608 | $ | (1,890 | ) | |||||||
| Net earnings (loss) per common share | ||||||||||||||||
| Basic | $ | 0.74 | $ | 0.53 | $ | 1.74 | $ | (0.04 | ) | |||||||
| Diluted (2) | $ | 0.73 | $ | 0.53 | $ | 1.73 | $ | (0.04 | ) | |||||||
| Adjusted EPS (3) | $ | 1.32 | $ | 1.19 | $ | 3.46 | $ | 3.36 | ||||||||
| Weighted average common shares (thousands) | ||||||||||||||||
| Basic | 50,320 | 47,206 | 49,692 | 45,122 | ||||||||||||
| Diluted | 50,797 | 47,549 | 50,054 | 45,504 | ||||||||||||
Notes to Condensed Consolidated Statements of Earnings
(1) Acquisition-related items include contingent acquisition consideration fair value adjustments, contingent acquisition consideration-related compensation expense and transaction costs.
(2) Diluted EPS is calculated using the "if-converted" method of calculating earnings per share in relation to the Convertible Notes, which were fully converted or redeemed by June 1, 2023. As such, the interest (net of tax) on the Convertible Notes is added to the numerator and the additional shares issuable on conversion of the Convertible Notes are added to the denominator of the earnings per share calculation to determine if an assumed conversion is more dilutive than no assumption of conversion. The "if-converted" method is used if the impact of the assumed conversion is dilutive. The "if-converted" method was dilutive for the three months ended September 30, 2023 and anti-dilutive for the nine months ended September 30, 2023.
(3) See definition and reconciliation above.
| Colliers International Group Inc. | |||||||||
| Condensed Consolidated Balance Sheets | |||||||||
| (in thousands of US$) | |||||||||
| September 30, | December 31, | September 30, | |||||||
| (unaudited) | 2024 | 2023 | 2023 | ||||||
| Assets | |||||||||
| Cash and cash equivalents | $ | 156,984 | $ | 181,134 | $ | 168,600 | |||
| Restricted cash (1) | 88,274 | 37,941 | 69,991 | ||||||
| Accounts receivable and contract assets | 884,984 | 726,764 | 688,306 | ||||||
| Mortgage warehouse receivables (2) | 135,915 | 177,104 | 54,957 | ||||||
| Prepaids and other assets | 355,575 | 306,829 | 294,631 | ||||||
| Warehouse fund assets | 108,781 | 44,492 | 42,081 | ||||||
| Current assets | 1,730,513 | 1,474,264 | 1,318,566 | ||||||
| Other non-current assets | 219,950 | 188,745 | 196,669 | ||||||
| Warehouse fund assets | 52,564 | 47,536 | - | ||||||
| Fixed assets | 230,434 | 202,837 | 186,346 | ||||||
| Operating lease right-of-use assets | 394,478 | 390,565 | 361,408 | ||||||
| Deferred tax assets, net | 69,816 | 59,468 | 62,781 | ||||||
| Goodwill and intangible assets | 3,541,615 | 3,118,711 | 3,114,120 | ||||||
| Total assets | $ | 6,239,370 | $ | 5,482,126 | $ | 5,239,890 | |||
| Liabilities and shareholders' equity | |||||||||
| Accounts payable and accrued liabilities | $ | 1,072,472 | $ | 1,104,935 | $ | 1,009,426 | |||
| Other current liabilities | 112,411 | 75,764 | 88,221 | ||||||
| Long-term debt - current | 15,683 | 1,796 | 3,976 | ||||||
| Mortgage warehouse credit facilities (2) | 128,944 | 168,780 | 48,309 | ||||||
| Operating lease liabilities - current | 92,699 | 89,938 | 88,568 | ||||||
| Liabilities related to warehouse fund assets | 57,554 | - | - | ||||||
| Current liabilities | 1,479,763 | 1,441,213 | 1,238,500 | ||||||
| Long-term debt - non-current | 1,788,686 | 1,500,843 | 1,638,650 | ||||||
| Operating lease liabilities - non-current | 379,457 | 375,454 | 343,790 | ||||||
| Other liabilities | 131,378 | 151,333 | 151,650 | ||||||
| Deferred tax liabilities, net | 82,440 | 43,191 | 40,334 | ||||||
| Liabilities related to warehouse fund assets | - | 47,536 | - | ||||||
| Redeemable non-controlling interests | 1,122,084 | 1,072,066 | 1,073,379 | ||||||
| Shareholders' equity | 1,255,562 | 850,490 | 753,587 | ||||||
| Total liabilities and equity | $ | 6,239,370 | $ | 5,482,126 | $ | 5,239,890 | |||
| Supplemental balance sheet information | |||||||||
| Total debt (3) | $ | 1,804,369 | $ | 1,502,639 | $ | 1,642,626 | |||
| Total debt, net of cash and cash equivalents (3) | 1,647,385 | 1,321,505 | 1,474,026 | ||||||
| Net debt / pro forma adjusted EBITDA ratio (4) | 2.5 | 2.2 | 2.4 | ||||||
Notes to Condensed Consolidated Balance Sheets
(1) Restricted cash consists primarily of cash amounts set aside to satisfy legal or contractual requirements arising in the normal course of business.
(2) Mortgage warehouse receivables represent mortgage loans receivable, the majority of which are offset by borrowings under mortgage warehouse credit facilities which fund loans that financial institutions have committed to purchase.
(3) Excluding mortgage warehouse credit facilities.
(4) Net debt for financial leverage ratio excludes restricted cash and mortgage warehouse credit facilities, in accordance with debt agreements.
| Colliers International Group Inc. | |||||||||||||||||
| Condensed Consolidated Statements of Cash Flows | |||||||||||||||||
| (in thousands of US$) | |||||||||||||||||
| Three months ended | Nine months ended | ||||||||||||||||
| September 30 | September 30 | ||||||||||||||||
| (unaudited) | 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Cash provided by (used in) | |||||||||||||||||
| Operating activities | |||||||||||||||||
| Net earnings | $ | 69,377 | $ | 29,376 | $ | 155,440 | $ | 63,470 | |||||||||
| Items not affecting cash: | |||||||||||||||||
| Depreciation and amortization | 56,073 | 51,163 | 156,426 | 151,449 | |||||||||||||
| Loss on disposal of operations | - | - | - | 2,282 | |||||||||||||
| Gains attributable to mortgage servicing rights | (6,151 | ) | (3,199 | ) | (11,178 | ) | (12,286 | ) | |||||||||
| Gains attributable to the fair value of loan premiums and origination fees | (3,601 | ) | (2,887 | ) | (9,224 | ) | (10,913 | ) | |||||||||
| Deferred income tax | (6,528 | ) | 1,458 | (13,923 | ) | (20,446 | ) | ||||||||||
| Other | (14,672 | ) | 28,555 | 476 | 95,076 | ||||||||||||
| 94,498 | 104,466 | 278,017 | 268,632 | ||||||||||||||
| Increase in accounts receivable, prepaid | |||||||||||||||||
| expenses and other assets | (69,942 | ) | (76,551 | ) | (164,231 | ) | (133,276 | ) | |||||||||
| Increase (decrease) in accounts payable, accrued | |||||||||||||||||
| expenses and other liabilities | 41,027 | (6,539 | ) | 38,125 | (6,082 | ) | |||||||||||
| Increase (decrease) in accrued compensation | 38,569 | 28,442 | (48,449 | ) | (125,188 | ) | |||||||||||
| Contingent acquisition consideration paid | (69 | ) | (35,655 | ) | (3,107 | ) | (38,646 | ) | |||||||||
| Mortgage origination activities, net | 3,591 | 4,964 | 10,783 | 14,034 | |||||||||||||
| Sales to AR Facility, net | (546 | ) | 23,026 | (436 | ) | 29,084 | |||||||||||
| Net cash provided by operating activities | 107,128 | 42,153 | 110,702 | 8,558 | |||||||||||||
| Investing activities | |||||||||||||||||
| Acquisition of businesses, net of cash acquired | (454,638 | ) | (1,597 | ) | (472,410 | ) | (61,295 | ) | |||||||||
| Purchases of fixed assets | (16,158 | ) | (19,349 | ) | (45,511 | ) | (60,411 | ) | |||||||||
| Purchases of warehouse fund assets | (15,676 | ) | (8,989 | ) | (273,019 | ) | (49,565 | ) | |||||||||
| Proceeds from disposal of warehouse fund assets | - | 6,369 | 76,438 | 50,369 | |||||||||||||
| Cash collections on AR Facility deferred purchase price | 32,957 | 31,896 | 101,805 | 91,207 | |||||||||||||
| Other investing activities | (43,518 | ) | (18,253 | ) | (101,651 | ) | (47,796 | ) | |||||||||
| Net cash used in investing activities | (497,033 | ) | (9,923 | ) | (714,348 | ) | (77,491 | ) | |||||||||
| Financing activities | |||||||||||||||||
| Increase (decrease) in long-term debt, net | 418,207 | (9,843 | ) | 419,683 | 209,825 | ||||||||||||
| Purchases of non-controlling interests, net | (8,052 | ) | (8,256 | ) | (17,789 | ) | (24,589 | ) | |||||||||
| Dividends paid to common shareholders | (7,542 | ) | (7,077 | ) | (14,674 | ) | (13,517 | ) | |||||||||
| Distributions paid to non-controlling interests | (17,475 | ) | (16,702 | ) | (66,302 | ) | (67,822 | ) | |||||||||
| Issuance of subordinate voting shares | - | - | 286,924 | - | |||||||||||||
| Other financing activities | 11,003 | (5,892 | ) | 28,096 | 7,745 | ||||||||||||
| Net cash provided by (used in) financing activities | 396,141 | (47,770 | ) | 635,938 | 111,642 | ||||||||||||
| Effect of exchange rate changes on cash, | |||||||||||||||||
| cash equivalents and restricted cash | (1,663 | ) | (3,447 | ) | (6,109 | ) | (3,160 | ) | |||||||||
| Net change in cash and cash | |||||||||||||||||
| equivalents and restricted cash | 4,573 | (18,987 | ) | 26,183 | 39,549 | ||||||||||||
| Cash and cash equivalents and | |||||||||||||||||
| restricted cash, beginning of period | 240,685 | 257,578 | 219,075 | 199,042 | |||||||||||||
| Cash and cash equivalents and | |||||||||||||||||
| restricted cash, end of period | $ | 245,258 | $ | 238,591 | $ | 245,258 | $ | 238,591 | |||||||||
| Colliers International Group Inc. | ||||||||||||||||
| Segmented Results | ||||||||||||||||
| (in thousands of US dollars) | ||||||||||||||||
| Real Estate | Investment | |||||||||||||||
| (unaudited) | Services | Engineering | Management | Corporate | Consolidated | |||||||||||
| Three months ended September 30 | ||||||||||||||||
| 2024 | ||||||||||||||||
| Revenues | $ | 734,932 | $ | 316,624 | $ | 127,405 | $ | 98 | $ | 1,179,059 | ||||||
| Adjusted EBITDA | 64,744 | 39,820 | 55,962 | (5,890 | ) | 154,636 | ||||||||||
| Operating earnings (loss) | 42,399 | 19,700 | 67,217 | (19,579 | ) | 109,737 | ||||||||||
| 2023 | ||||||||||||||||
| Revenues | $ | 677,278 | $ | 259,925 | $ | 118,717 | $ | 112 | $ | 1,056,032 | ||||||
| Adjusted EBITDA | 59,735 | 32,263 | 55,164 | (2,250 | ) | 144,912 | ||||||||||
| Operating earnings (loss) | 40,814 | 20,017 | 20,388 | (10,320 | ) | 70,899 | ||||||||||
| Real Estate | Investment | |||||||||||||||
| Services | Engineering | Management | Corporate | Consolidated | ||||||||||||
| Nine months ended September 30 | ||||||||||||||||
| 2024 | ||||||||||||||||
| Revenues | $ | 2,128,082 | $ | 816,023 | $ | 375,977 | $ | 325 | $ | 3,320,407 | ||||||
| Adjusted EBITDA | 197,236 | 71,814 | 159,301 | (9,396 | ) | 418,955 | ||||||||||
| Operating earnings (loss) | 123,508 | 32,614 | 161,129 | (49,439 | ) | 267,812 | ||||||||||
| 2023 | ||||||||||||||||
| Revenues | $ | 2,013,288 | $ | 727,995 | $ | 358,323 | $ | 367 | $ | 3,099,973 | ||||||
| Adjusted EBITDA | 169,988 | 71,596 | 160,100 | (5,069 | ) | 396,615 | ||||||||||
| Operating earnings (loss) | 91,991 | 42,667 | 61,599 | (27,952 | ) | 168,305 | ||||||||||
COMPANY CONTACTS:
Jay S. Hennick
Chairman & Chief Executive Officer
Chris McLernon
Chief Executive Officer, Real Estate Services
Christian Mayer
Chief Financial Officer
(416) 960-9500
