Cbre Group Inc · NYSE:CBRE
Cbre — CB Richard Ellis Group — Q1 2011 Earnings Presentation
21 slides from Cbre's earnings presentation, Apr 27, 2011
Slide 1: First Quarter 2011 Earnings Conference Call
CB Richard Ellis Group, Inc. First Quarter 2011 Earnings Conference Call April 27, 2011
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains statements that are forward looking within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our future growth momentum, operations, financial performance, business outlook and ability to complete
Slide 3: Conference Call Participants
Conference Call Participants Brett White Chief Executive Officer Gil Borok Chief Financial Officer Nick Kormeluk Investor Relations
Slide 4: Business Overview Highlights
Business Overview Highlights: Commercial real estate recovery continued generally as anticipated Total company revenue increased 16% for Q1 2011 versus Q1 2010 to $1.2 billion Outsourcing revenue growth accelerated to 14% in Q1 2011 – balanced contribution by all geographies Investment sales posted
Slide 5: Q1 CBRE Wins
Q1 CBRE Wins NEW YORK Tishman-Speyer CBRE represented Tishman-Speyer in the 1.34 million SF lease renewal for NBC Universal, Inc. at 30 Rockefeller Plaza. This was the largest leasing transaction in the first quarter of 2011 in Manhattan. FRANCE Thales Communications CBRE represented French telecomm
Slide 6: Q1 2011 Performance Overview
Q1 2011 Performance Overview Q1 2011 Q1 2010 Revenue1 $1,186.1 million $1,025.9 million Net Income2 GAAP $34.4 million Adjusted $40.6 million GAAP ($6.6) million Adjusted $3.2 million EPS2,3 GAAP $0.11 Adjusted $0.13 GAAP ($0.02) Adjusted $0.01 EBITDA4 $113.0 million $75.0 million Normalized EBITDA4
Slide 7: Revenue Breakdown 1st Quarter 2011
Revenue Breakdown 1st Quarter 2011 Includes revenue from discontinued operations of $1.0 million for the three months ended March 31, 2011. ($ in millions) 2011 1 2010 % Change Property & Facilities Management 478.3 420.6 14 Leasing 353.5 327.7 8 Sales 157.9 117.4 34 Appraisal & Valuation 75.3 70.0
Slide 8: Outsourcing
Outsourcing CAGR 14% 1. Represents combined data for CBRE and TCC; does not include joint ventures and affiliates 1 Q1 2011 Wins 13 new 22 renewals 9 expansions Highlights: 44 long-term contracts signed in Q1 2011 - the highest quarterly total ever for CBRE All regions had double digit revenue growt
Slide 9: Market Statistics
Market Statistics Source: CBRE Econometric Advisors (EA) Outlooks Summer 2011 preliminary US Vacancy US Absorption Trends (in millions of square feet) 4Q10 4Q11F 4Q12F 1Q10 1Q11 2009 2010 2011F 2012F 1Q10 1Q11 Office 16.5% 15.9% 14.7% 16.8% 16.4% -41.2 21.3 25.3 47.4 -1.0 4.9 Industrial 14.3% 13.4%
Slide 10: Sales and Leasing Revenue - Americas
Sales and Leasing Revenue - Americas ($ in millions) Sales Leasing 38% 8% 60% 36% 2011
Slide 11: Sales and Leasing Revenue – EMEA
Sales and Leasing Revenue – EMEA ($ in millions) Sales Leasing 12% 37% 1% 13% 2011
Slide 12: Sales and Leasing Revenue – Asia Pacific
Sales and Leasing Revenue – Asia Pacific ($ in millions) Sales Leasing 57% 51% 15% 24% 2011
Slide 13: Development Services
Development Services Balance Sheet Participation $71.2 million co-invested in Development Services at quarter end. $16.8 million in recourse debt to CBRE and repayment guarantees. In Process figures contain Long-Term Operating Assets (LTOA), including $1.5 billion for 1Q 11, $1.6 billion for 4Q 10,
Slide 14: Global Investment Management
Global Investment Management ($ in billions) ($ in millions) CAGR 18% CAGR 16% ($ in millions) Includes revenue from discontinued operations of $1.0 million for the three months ended March 31, 2011. ING closing remains on-track for second half of 2011 CBRE’s co-investments totaled $98.5 million at
Slide 15: Global Investment Management Pro-forma Normalized EBITDA
Global Investment Management Pro-forma Normalized EBITDA For the three months ended March 31, 2011 and 2010, the Company recorded net carried interest incentive compensation expense of $1.0 million and $1.1 million, respectively, pertaining to future periods. As of March 31, 2011, the Company mainta
Slide 16: Mandatory Amortization and Maturity Schedule
Mandatory Amortization and Maturity Schedule $ millions $700 million revolver facility matures in May 2015. As of March 31, 2011 the outstanding revolver balance was $60.7 million. As of March 31, 20111 - 200.0 400.0 600.0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Term Loan A Term Loan
Slide 17: Capitalization
Capitalization Net of original issue discount of $12.0 million and $12.3 million at March 31, 2011 and December 31, 2010, respectively. Represents notes payable on real estate in Development Services that are recourse to the Company. Excludes non-recourse notes payable on real estate of $557.8 milli
Slide 18: Business Outlook
Business Outlook We are in the early months of a cyclical recovery Outsourcing fundamental trends remain strong Investment sales expected to continue to improve at higher than normal rates as we move toward a fully functioning market Leasing growth rates should remain solid with tougher compares Gro
Slide 19: GAAP Reconciliation Tables
GAAP Reconciliation Tables CB RICHARD ELLIS
Slide 20: Reconciliation of Normalized EBITDA to EBITDA to Net Income (Loss)
Reconciliation of Normalized EBITDA to EBITDA to Net Income (Loss) Includes EBITDA related to discontinued operations of $1.0 million for the three months ended March 31, 2011. Includes depreciation and amortization related to discontinued operations of $0.3 million for the three months ended March
Slide 21: Reconciliation of Net Income (Loss) to Net Income, As Adjusted
Reconciliation of Net Income (Loss) to Net Income, As Adjusted ($ in millions, except for per share data) 2011 2010 Net income (loss) attributable to CB Richard Ellis Group, Inc. 34.4 $ (6.6) $ Integration and other costs related to acquisitions, net of tax 4.5 0.6 Amortization expense related to cu
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