Colliers International Group Inc. · TSX:CIGI
Colliers International — Q4 2018 Earnings Presentation
22 slides from Colliers International's earnings presentation, Feb 13, 2019
Slide 1: Fourth Quarter 2018 Financial Results
February 13, 2019 Colliers International Group Inc. Fourth Quarter 2018 Financial Results
Slide 2: Forward-Looking Statements and Non-GAAP Measures
Forward-Looking Statements This presentation 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 kno
Slide 3: Fourth Quarter 2018 Results
Fourth Quarter 2018 Results • Strong fourth quarter and full year results capping off an outstanding year • Quarterly revenues up 16% (18% in local currencies) with internal growth of 7% • Adjusted EPS of $1.77, up 30% from the prior year quarter • Total of 12 acquisitions completed in 2018, includi
Slide 4: Fourth Quarter 2018 Results Summary
Fourth Quarter 2018 Results Summary (US$ millions, except per share amounts) % Change over Q4 2017 Q4 2018 Q4 2017 USD LC(1) Revenue 889.9 763.9 16% 18% Adjusted EBITDA 133.2 96.0 39% 39% Adjusted EBITDA Margin 15.0% 12.6% Adjusted EPS 1.77 1.36 30% GAAP Operating Earnings 98.1 78.9 24% GAAP Operati
Slide 5: Fourth Quarter Consolidated Revenues
Fourth Quarter Consolidated Revenues (US$ millions) Q4 Revenues 889.9 % Change over Q4 2017 USD LC Investment Management 38.2 763.9 Investment Management NM NM 4.2 Outsourcing & Advisory 14% 16% Outsourcing & Advisory (1) 309.4 Sales Brokerage 7% 8% 271.3 Lease Brokerage 15% 17% Total 16% 18% Sales
Slide 6: Full Year Consolidated Revenues
Full Year Consolidated Revenues (US$ millions) Full Year Revenues 2,825.4 % Change over 2017 USD LC 75.0 Investment Management 2,435.2 Investment Management NM NM 12.6 Outsourcing & Advisory 14% 14% 1,065.6 Sales Brokerage 8% 7% Outsourcing & Advisory (1) 929.9 Lease Brokerage 18% 17% Total 16% 15%
Slide 7: Fourth Quarter Geographic Split
Fourth Quarter Geographic Split (US$ millions) Q4 2018 Revenues Q4 2018 Adjusted EBITDA1 Investment Investment Management Management 38.9 17.7 Asia Pacific 159.2 4% 13% Americas 45.6 18% 32% Asia Pacific 29.0 20% Americas 53% 474.5 25% EMEA 216.9 35% EMEA 48.9 Q4 2017 Revenues Q4 2017 Adjusted EBITD
Slide 8: Full Year Geographic Split
Full Year Geographic Split (US$ millions) 2018 Revenues 2018 Adjusted EBITDA1 Investment Investment Management Management 76.0 Asia Pacific 26.1 528.4 3% 8% 19% Asia Pacific 73.4 Americas 22% 43% 141.5 56% Americas 22% 1,596.2 EMEA 623.2 27% EMEA 88.5 2017 Revenues 2017 Adjusted EBITDA2 Investment I
Slide 9: Americas Q4
Americas Q4 (US$ millions) • Revenues up 14% in local currencies, with 9% from internal growth and 5% growth from recent acquisitions • Internal growth generated primarily from Lease Brokerage activity, led by Canada • Adjusted EBITDA up 22%, with margin benefitting from operating leverage on existi
Slide 10: EMEA Q4
EMEA Q4 (US$ millions) • Revenues up 21% in local currencies, with 15% growth from recent acquisitions and 6% from internal growth • Internal growth split evenly among service lines, particularly in Germany and France • Adjusted EBITDA was $48.9 million with margin expansion from improved results in
Slide 11: Asia Pacific Q4
Asia Pacific Q4 (US$ millions) • Revenues up 5% in local currencies, with 3% from internal growth and 2% growth from recent acquisitions • Internal growth in LC led by an increase in Lease Brokerage and Outsourcing & Advisory • Adjusted EBITDA up 11% with margin improvement in Hong Kong and Singapor
Slide 12: Investment Management Q4
Investment Management Q4 (US$ millions) • New segment comprised of Harrison Street (acquired July 2018) and the existing European investment management business previously reported within the EMEA segment • $26.4 Billion of AUM at December 31, 2018 Revenue Adjusted EBITDA1 (Adjusted EBITDA Margin) 3
Slide 13: Capitalization & Capital Allocation
Capitalization & Capital Allocation (US$ millions) December 31, 2018 December 31, 2017 Highlights Cash $ 127.0 $ 108.5 Total Debt 672.1 249.9 • Net debt / pro forma adjusted EBITDA leverage of 1.6 at December 31, 2018, Net Debt $ 545.1 $ 141.4 down from pro forma leverage of 2.2 at Redeemable non- 3
Slide 14: Looking Ahead
Looking Ahead 2019 Consolidated full year outlook • Predicated on stable market conditions, despite a number of ongoing geopolitical events • High single digit consolidated revenue growth, consisting of low single digit internal growth and the balance from previously completed acquisitions • Consoli
Slide 15: Appendix: Reconciliation of non-GAAP measures
Appendix Reconciliation of non-GAAP measures
Slide 16: Reconciliation of GAAP earnings to adjusted EBITDA
Appendix Reconciliation of GAAP earnings to adjusted EBITDA Three months ended Twelve months ended (US$ thousands) December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 Net earnings $ 65,847 $ 40,955 $ 128,574 $ 94,074 Income tax 25,428 33,839 53,260 61,907 Other income, net (240)
Slide 17: Reconciliation of GAAP earnings to adjusted net earnings and adjusted EPS
Appendix Reconciliation of GAAP earnings to adjusted net earnings and adjusted earnings per share Three months ended Twelve months ended (US$ thousands) December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 Net earnings $ 65,847 $ 40,955 $ 128,574 $ 94,074 Non-controlling interest
Slide 18: Appendix: Full year regional details
Appendix Full year regional details
Slide 19: Americas Full Year
Americas Full Year (US$ millions) • Revenues up 13% in local currencies, with 8% from internal growth and 5% growth from recent acquisitions • Internal growth driven by Lease Brokerage revenues • Adjusted EBITDA up 14%, with margin benefitting from operating leverage Revenue Adjusted EBITDA2 (Adjust
Slide 20: EMEA Full Year
EMEA Full Year (US$ millions) • Revenues up 17% in local currencies, with 14% growth from recent acquisitions and 3% from internal growth • Internal growth concentrated in Lease Brokerage, primarily in Germany • Adjusted EBITDA was $88.5 million with a margin of 14.2%, favourably impacted by recent
Slide 21: Asia Pacific Full Year
Asia Pacific Full Year (US$ millions) • Revenues up 8% in local currencies, with 5% internal growth and 3% growth from recent acquisitions • Internal growth in LC led by an increase in Lease Brokerage and Outsourcing & Advisory • Adjusted EBITDA up 20% with margin improvement from operating leverage
Slide 22: Investment Management Full Year
Investment Management Full Year (US$ millions) • New segment comprised of Harrison Street (acquired July 2018) and the existing European investment management business previously reported within the EMEA segment • $26.4 Billion of AUM at December 31, 2018 Revenue Adjusted EBITDA1 (Adjusted EBITDA Ma
Colliers International Group — Q4 2018 Earnings Presentation on 6ix