Colliers International Group Inc.

Transcription

1 Clliers Internatinal Grup Inc. First Quarter 2017 Financial Results May 2, 2017

2 Frward-Lking Statements This presentatin includes r may include frward-lking statements. Frward-lking statements include the Cmpany s financial perfrmance utlk and statements regarding gals, beliefs, strategies, bjectives, plans r current expectatins. These statements invlve knwn and unknwn risks, uncertainties and ther factrs which may cause the actual results t be materially different frm any future results, perfrmance r achievements cntemplated in the frward-lking statements. Such factrs include: ecnmic cnditins, especially as they relate t cmmercial and cnsumer credit cnditins and business spending; cmmercial real estate prperty values, vacancy rates and general cnditins f financial liquidity fr real estate transactins; the effects f changes in freign exchange rates in relatin t the US dllar n Canadian dllar, Australian dllar, UK pund sterling and Eur denminated revenues and expenses; cmpetitin in markets served by the Cmpany; labr shrtages r increases in cmmissin, wage and benefit csts; disruptins r security failures in infrmatin technlgy systems; and plitical cnditins r events, including electins, referenda, changes t internatinal trade and immigratin plicies and any utbreak r escalatin f terrrism r hstilities. Additinal factrs and explanatry infrmatin are identified in the Cmpany s Annual Infrmatin Frm fr the year ended December 31, 2016 under the heading Risk Factrs (which factrs are adpted herein and a cpy f which can be btained at and ther peridic filings with Canadian and US securities regulatrs. Frward lking statements cntained in this presentatin are made as f the date heref and are subject t change. All frward-lking statements in this press release are qualified by these cautinary statements. Except as required by applicable law, Clliers undertakes n bligatin t publicly update r revise any frward-lking statement, whether as a result f new infrmatin, future events r therwise. 2 Nn-GAAP measures This presentatin makes reference t the nn-gaap measures Adjusted EBITDA and Adjusted EPS. Please refer t Appendix fr recnciliatins t GAAP measures. Clliers Internatinal 2017

3 First Quarter 2017 Results Strng perating results fr first quarter, with slid revenue grwth frm acquisitins and internally frm existing peratins Expanded revlving credit facility t $700 millin, and extended maturity date fr 5 years t January 2022 New unsecured structure increases financial capacity and flexibility t fund future grwth Cmpleted five acquisitins since beginning f year Clliers Nrthern Califrnia & Nevada Largest Clliers affiliate with ver 400 prfessinals Visin Asset Management UK based hspitality asset manager Clliers Denmark 100 prfessinals in five ffices acrss Denmark Clliers Hlland Michigan Final step in unifying Clliers peratins acrss Michigan Welsh Cmpanies 240 prfessinals in Minneaplis-St. Paul, MN Paid semi-annual dividend f US$0.05 per cmmn share 3 Clliers Internatinal 2017

4 First Quarter 2017 Results Summary (US$ millins, except per share amunts) Q Q % Change ver Q USD LC (1) Revenue % 13% Adjusted EBITDA % 33% Adjusted EBITDA Margin 6.9% 5.9% Adjusted EPS % GAAP Operating Earnings % GAAP Operating Earnings Margin 2.6% 2.4% GAAP EPS - (0.19) NM 4 (1) Lcal currency ( LC ) basis, excluding the effects f freign currency exchange rate fluctuatins. Clliers Internatinal 2017

5 First Quarter 2017 Cnslidated Revenues (US$ millins) Q1 Revenue Outsurcing & Advisry (1) Sales Brkerage Lease Brkerage % Change ver Q USD LC Outsurcing & Advisry 2% 3% Sales Brkerage 18% 18% Lease Brkerage 21% 22% Ttal 12% 13% Revenue Mix Outsurcing & Advisry 39% 43% Sales Brkerage 29% 27% Lease Brkerage 32% 30% Ttal 100% 100% 5 (1) Outsurcing & Advisry services include: Crprate Slutins, Valuatin & Advisry Services, Prperty and Asset Management Services, Prject Management, Wrkplace Slutins, Prperty Marketing and Research Services. Clliers Internatinal 2017

6 First Quarter Gegraphic Split (US$ millins) Q Revenue Q Adjusted EBITDA Q Revenue Q Adjusted EBITDA 6 Clliers Internatinal 2017

7 Americas (US$ millins) 21% revenue grwth n a lcal currency basis with 17% cntributin frm recent acquisitins and 4% internal revenue grwth in lcal currencies Internal grwth was driven by Outsurcing & Advisry, particularly valuatin services and prperty management Margins impacted by (i) recent investments in peple t add new service line capabilities in the US and (ii) timing f expenses Revenue Adjusted EBITDA (Adjusted EBITDA Margin) Outsurcing & Advisry (1) Sales Brkerage Lease Brkerage 8.3% 10.3% USD Q LC Q Q Q Internal Grwth (LC) Revenue Grwth 22% 21% 4% 7 (1) Outsurcing & Advisry services include: Crprate Slutins, Valuatin & Advisry Services, Prperty and Asset Management Services, Prject Management, Wrkplace Slutins, Prperty Marketing and Research Services. (2) GAAP Operating Earnings: Q $11.5M at 4.5% margin ; Q $17.0M at 8.1% margin Clliers Internatinal 2017

8 EMEA (US$ millins) 11% decline in internal revenues in lcal currencies and 7% grwth frm recent acquisitins Internal revenues were impacted by (i) a decline in Outsurcing & Advisry activity, particularly in France with several large prject management assignments in the prir year quarter invlving the supply and installatin f materials at lwer margins than ther revenue types, ffset by (ii) increased Lease Brkerage activity, primarily in the UK Freign exchange headwinds f 6% negatively affected results n a US dllar basis, primarily UK pund sterling Adjusted EBITDA imprvement driven by changes in revenue mix and recent acquisitins Revenue Adjusted EBITDA (Adjusted EBITDA Margin) Outsurcing & Advisry (1) Sales Brkerage 4.1% (0.6%) Lease Brkerage Q Q Q Q USD LC Internal Grwth (LC) 8 Revenue Grwth (10%) (4%) (11%) (1) Outsurcing & Advisry services include: Crprate Slutins, Valuatin & Advisry Services, Prperty and Asset Management Services, Prject Management, Wrkplace Slutins, Prperty Marketing and Research Services. (2) GAAP Operating Earnings (Lss): Q ($1.1M) at -1.2% margin ; Q ($5.9M) at -6.0% margin Clliers Internatinal 2017

9 Asia Pacific (US$ millins) 12% internal revenue grwth in lcal currencies Revenue grwth was cncentrated in Lease Brkerage and Sales Brkerage Freign exchange tailwinds psitively impacted results n a US dllar reprting currency basis by 3% Adjusted EBITDA benefitted frm perating leverage frm higher revenues Revenue Adjusted EBITDA (Adjusted EBITDA Margin) Outsurcing & Advisry (1) Sales Brkerage 8.2% 4.9% Lease Brkerage Q Q Q Q USD LC Internal Grwth (LC) Revenue Grwth 15% 12% 12% 9 (1) Outsurcing & Advisry services include: Crprate Slutins, Valuatin & Advisry Services, Prperty and Asset Management Services, Prject Management, Wrkplace Slutins, Prperty Marketing and Research Services. (2) GAAP Operating Earnings: Q $4.9M at 6.4% margin ; Q $1.9M at 2.9% margin Clliers Internatinal 2017

10 Capitalizatin & Capital Allcatin Overview (US$ millins) March 31, 2017 December 31, 2016 March 31, 2016 Cash $ 97.7 $ $ Ttal Debt Net Debt $ $ $ Redeemable nn-cntrlling interests Sharehlders' equity Ttal capitalizatin $ $ $ Net debt / pr frma adjusted EBITDA Highlights Net debt / pr frma adjusted EBITDA leverage reflects seasnal wrking capital utilizatin and Q1 acquisitin spend Significant Q1 acquisitin activity Anticipated capital expenditures f $40-45 millin fr full year Mnths Ended March 31, 2017 March 31, 2016 Capital Expenditures $ 6.7 $ 4.2 Acquisitin Spend (1) $ 55.9 $ (1) Includes business acquisitins, cntingent acquisitin cnsideratin and purchases f nn-cntrlling interests in subsidiaries. Clliers Internatinal 2017

11 Lking Ahead 2017 Outlk Revenue pipelines reflect sustained activity acrss all service lines Generally stable cnditins in majr markets, despite nging geplitical uncertainty Lw duble-digit percentage revenue grwth in lcal currency, given acquisitins cmpleted year t date and expected lw single-digit percentage internal revenue grwth Adjusted EBITDA margin cnsistent with 2016 Lw duble-digit percentage adjusted EPS grwth 2017 Fcus Integrate recently acquired businesses Cntinue t pursue select recruits in key markets Cntinue t strategically invest in glbal platfrm 11 Clliers Internatinal 2017

12 Appendix: Recnciliatin f nn-gaap measures

13 Recnciliatin f GAAP earnings t adjusted EBITDA Three mnths ended (US$ thusands) March 31, 2017 March 31, 2016 Net earnings $ 5,506 $ 4,032 Incme tax 3,658 3,071 Other incme, net (1,229) (600) Interest expense, net 2,942 2,364 Operating earnings 10,877 8,867 Depreciatin and amrtizatin 12,027 11,034 Acquisitin-related items 4,208 1,071 Restructuring csts Stck-based cmpensatin expense 1,443 1,212 Adjusted EBITDA $ 29,289 $ 22, Clliers Internatinal 2017

14 Recnciliatin f GAAP earnings t adjusted net earnings and adjusted earnings per share Three mnths ended (US$ thusands) March 31, 2017 March 31, 2016 Net earnings $ 5,506 $ 4,032 Nn-cntrlling interest share f earnings (2,113) (2,414) Amrtizatin f intangible assets 6,050 5,637 Acquisitin-related items 4,208 1,071 Restructuring csts Stck-based cmpensatin expense 1,443 1,212 Incme tax n adjustments (2,010) (1,691) Nn-cntrlling interest n adjustments (844) (502) Adjusted net earnings $ 12,974 $ 7,345 Three mnths ended (US$) March 31, 2017 March 31, 2016 Diluted net earnings (lss) per share $ - $ (0.19) Nn-cntrlling interest redemptin increment Amrtizatin f intangible assets, net f tax Acquisitin-related items Restructuring csts, net f tax Stck-based cmpensatin expense, net f tax Adjusted earnings per share $ 0.33 $ Clliers Internatinal 2017