Colliers International Group Inc. · TSX:CIGI
Colliers International — Q1 2020 Earnings Presentation
16 slides from Colliers International's earnings presentation, Apr 28, 2020
Slide 1: First Quarter 2020 Financial Results
April 28, 2020 Colliers International Group Inc. First Quarter 2020 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: First Quarter 2020 Results
First Quarter 2020 Results • Solid first quarter results • Quarterly revenues down 1% (up 1% in local currency) • Adjusted EBITDA up 25% (28% in local currency) • Adjusted EPS of $0.54, up 6% from last year • Well-positioned to navigate near-term uncertainties stemming from COVID-19 pandemic • Signi
Slide 4: First Quarter 2020 Results Summary
First Quarter 2020 Results Summary (US$ millions, except per share amounts) % Change over Q1 2019 Q1 2020 Q1 2019 (1) USD LC Revenue 630.6 635.1 -1% 1% Adjusted EBITDA 54.5 43.6 25% 28% Adjusted EBITDA Margin 8.6% 6.9% Adjusted EPS 0.54 0.51 6% GAAP Operating Earnings 18.5 13.4 38% GAAP Operating Ea
Slide 5: First Quarter Consolidated Revenues
First Quarter Consolidated Revenues (US$ millions) Q1 Revenues % Change over Q1 2019 USD LC Investment Management 6% 7% 630.6 635.1 Outsourcing & Advisory 7% 9% Investment Management 43.1 45.8 Sales Brokerage -6% -4% 51% Lease Brokerage -10% -8% Recurring 258.4 Total -1% 1% Outsourcing & Advisory 27
Slide 6: First Quarter Geographic Split
First Quarter Geographic Split (US$ millions) Q1 2020 Revenues Q1 2020 Adjusted EBITDA1 Investment Management 45.8 7% Investment Asia Management Pacific 18.4 34% 97.4 15% 57% Americas 19% 59% Americas 31.2 EMEA 370.0 117.1 Asia 10% Pacific 5.2 EMEA (3.6) Q1 2019 Revenues Q1 2019 Adjusted EBITDA2 Inv
Slide 7: Americas
Americas (US$ millions) • Revenues up 4% in local currency • Growth was driven by strong increases in Outsourcing & Advisory activity with brokerage down slightly versus the prior year quarter • Adjusted EBITDA margin up on lower costs and operating leverage in Outsourcing & Advisory Revenue Adjuste
Slide 8: EMEA
EMEA (US$ millions) • Revenues were approximately flat in local currency across all service lines • Adjusted EBITDA was a loss of $3.6 million relative to a loss of $2.5 million in Q1 2019 Revenue Adjusted EBITDA1 (Adjusted EBITDA Margin) 117.1 120.5 Outsourcing & Advisory 64.1 66.5 Sales Brokerage
Slide 9: Asia Pacific
Asia Pacific (US$ millions) • Revenues were down 9% in local currency • Sharply reduced Sales Brokerage activity in China and the rest of Asia attributable to the pandemic, beginning early in the quarter, partially offset by incremental revenues from the recent Synergy acquisition • Adjusted EBITDA
Slide 10: Investment Management
Investment Management (US$ millions) • Local currency revenue growth of 7% was positively impacted by management fee growth across open and closed-ended alternative asset funds as well as timing of certain European transaction fees • $35.1 Billion of AUM as of March 31, 2020, up 31% from $26.7 Billi
Slide 11: Balance Sheet & Liquidity
Balance Sheet & Liquidity (US$ millions) March 31, 2020 December 31, 2019 March 31, 2019 Highlights Cash $ 103.1 $ 115.0 $ 117.3 • Conservative financial profile with net Total Debt 741.2 611.4 803.5 debt / pro forma adjusted EBITDA leverage of 1.8x at March 31, 2020 Net Debt $ 638.1 $ 496.4 $ 686.2
Slide 12: Impact of COVID-19: Financial Metrics
Impact of COVID-19 Financial Metrics • Given uncertainty related to the pandemic, working assumption is a 15% - 25% reduction in consolidated revenues and a 25% - 35% reduction in consolidated Adjusted EBITDA for the full year 2020 (relative to 2019) and excludes any acquisitions not yet completed •
Slide 13: Impact of COVID-19: Operational Priorities
Impact of COVID-19 Operational Priorities • Company has taken significant steps to adjust costs to expected revenues across all service lines swiftly and thoughtfully as conditions warranted and may take further cost reduction measures in the future as required • Executed measures should result in a
Slide 14: Appendix: Reconciliation of non-GAAP measures
Appendix Reconciliation of non-GAAP measures
Slide 15: Reconciliation of GAAP earnings to adjusted EBITDA
Appendix Reconciliation of GAAP earnings to adjusted EBITDA Three months ended (US$ thousands) March 31, 2020 March 31, 2019 Net earnings $ 6,458 $ 5,463 Income tax 5,198 1,215 Other income, net (704) (501) Interest expense, net 7,585 7,221 Operating earnings 18,537 13,398 Depreciation and amortizat
Slide 16: 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 (US$ thousands) March 31, 2020 March 31, 2019 Net earnings $ 6,458 $ 5,463 Non-controlling interest share of earnings (3,377) (1,244) Amortization of intangible assets 16,013 14,720 A
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