Colliers International Group Inc. · TSX:CIGI
Colliers International — Q2 2018 Earnings Presentation
18 slides from Colliers International's earnings presentation, Jul 31, 2018
Slide 1: Second Quarter 2018 Financial Results
Colliers International Group Inc. Second Quarter 2018 Financial Results July 31, 2018
Slide 2: Forward-Looking Statements
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 sta tem ents inv
Slide 3: Second Quarter 2018 Results
3 Second Quarter 2018 Results • Strong second quarter results • Quarterly revenues up 14% (11% in local currencies) with internal growth of 5% • Adjusted EPS of $0.95, up 23% from the prior year quarter • Issued € 210 million of senior unsecured notes, with a ten - year term and fixed interest rate
Slide 4: Second Quarter 2018 Results Summary
4 Second Quarter 2018 Results Summary (US$ millions, except per share amounts) (1) Local currency (“LC”) basis, excluding the effects of foreign currency exchange rate fluctuations USD LC (1) Revenue 667.4 586.2 14% 11% Adjusted EBITDA 69.4 60.3 15% 10% Adjusted EBITDA Margin 10.4% 10.3% Adjusted EP
Slide 5: Second Quarter Consolidated Revenues
5 Second Quarter Consolidated Revenues (US$ millions) (1) Outsourcing & Advisory services include: Corporate Solutions, Valuation & Advisory Services, Property and Asset Manageme nt Services, Project Management, Workplace Solutions, Property Marketing and Research Services. 221.9 180.4 185.8 172.2 2
Slide 6: Second Quarter Geographic Split
6 (1) Q2 2018 GAAP Operating Earnings: $26.8M Americas, $14.0M EMEA, $13.5M Asia Pacific (2) Q2 2017 GAAP Operating Earnings: $22.9M Americas, $11.8M EMEA, $11.2M Asia Pacific Q2 2018 Revenues Q2 2018 Adjusted EBITDA 1 Second Quarter Geographic Split (US$ millions) 58% 23% 19% Americas 388.6 EMEA 14
Slide 7: Americas Revenue and Adjusted EBITDA
7 (1) Outsourcing & Advisory services include: Corporate Solutions, Valuation & Advisory Services, Property and Asset Management Services, Project Management, Workplace Solutions, Property Marketing and Research Services Revenue Americas (US$ millions) Adjusted EBITDA 2 (Adjusted EBITDA Margin) • Re
Slide 8: EMEA Revenue and Adjusted EBITDA
8 (1) Outsourcing & Advisory services include: Corporate Solutions, Valuation & Advisory Services, Property and Asset Management Services, Project Management, Workplace Solutions, Property Marketing and Research Services Revenue EMEA (US$ millions) Adjusted EBITDA 2 (Adjusted EBITDA Margin) • Revenu
Slide 9: Asia Pacific Revenue and Adjusted EBITDA
9 (1) Outsourcing & Advisory services include: Corporate Solutions, Valuation & Advisory Services, Property and Asset Management Services, Project Management, Workplace Solutions, Property Marketing and Research Services Revenue Asia Pacific (US$ millions) Adjusted EBITDA 2 (Adjusted EBITDA Margin)
Slide 10: Capitalization & Capital Allocation
10 1 Includes business acquisitions, contingent acquisition consideration and purchase of non - controlling interests in subsidiaries. Capitalization & Capital Allocation (US$ millions) Highlights • Expanded ($1 billion capacity) and extended (April 2023) credit facility • € 210 million 10 year seni
Slide 11: Looking Ahead
11 Looking Ahead 2018 Existing Business Outlook • Predicated on stable market conditions, including modest economic growth and increases to interest rates • Low to mid single - digit percentage internal revenue growth on full year basis plus mid single - digit revenue growth due to acquisitions • Ad
Slide 12: Harrison Street Investment Management
Harrison Street Investment Management
Slide 13: Harrison Street Demographic Based Investing
49% 48% 3% Close End Funds Open End Funds Separate Accounts and Other $15.6B of AUM By Product Type Harrison Street Demographic Based Investing Differentiated Strategies Transformational Investment Establishes New Platform Student Housing Seniors Housing Storage Medical Office Investable Universe $2
Slide 14: Highly Regarded Investor Base
14 Highly Regarded Investor Base • Diversified, global and loyal investor base • More than 245 investors • 70% of investors have invested in multiple Harrison Street funds • No one investor holds greater than 6% AUM, top 20 investors hold 43% of AUM Public Plans & Sovereign Entities 44.7% Corporate
Slide 15: Investment Management Platform
Investment Management Platform Stable Recurring Revenues 15 15%+ of Colliers EBITDA • Harrison Street and existing investment management business • Recurring revenue streams • $115 - $130 million • EBITDA margins of 35 - 40% • ~15% of Colliers annualized EBITDA • Strong growth potential • Positive i
Slide 16: Appendix: Reconciliation of non-GAAP measures
Appendix Reconciliation of non - GAAP measures
Slide 17: Reconciliation of GAAP earnings to adjusted EBITDA
17 Appendix Reconciliation of GAAP earnings to adjusted EBITDA (US$ thousands) Net earnings $ 28,804 $ 25,957 $ 37,343 $ 32,757 Income tax 12,859 12,799 17,575 17,126 Other income, net (33) (807) (460) (2,036) Interest expense, net 3,939 3,279 6,856 6,221 Operating earnings 45,569 41,228 61,314 54,0
Slide 18: Reconciliation of GAAP earnings to adjusted net earnings and adjusted EPS
18 Appendix Reconciliation of GAAP earnings to adjusted net earnings and adjusted earnings per share (US$ thousands) Net earnings $ 28,804 $ 25,957 $ 37,343 $ 32,757 Non-controlling interest share of earnings (3,547) (5,091) (4,216) (7,293) Amortization of intangible assets 8,779 7,915 17,368 13,965
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