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
July 31, 2018 Colliers International Group Inc. Second Quarter 2018 Financial Results
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 statements involve kno
Slide 3: Second Quarter 2018 Results
Second Quarter 2018 Results • Strong second quarter results • Quarterly revenues up 14% (11% in local currencies) with internal growth of 5% • Adjusted EPS of $0.95, up 23% from the prior year quarter • Issued €210 million of senior unsecured notes, with a ten-year term and fixed interest rate of 2.
Slide 4: Second Quarter 2018 Results Summary
Second Quarter 2018 Results Summary (US$ millions, except per share amounts) % Change over Q2 2017 Q2 2018 Q2 2017 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 EPS 0.95 0.77 23% GAAP Operating Earnings 45.6 41.2 11% GAAP Operatin
Slide 5: Second Quarter Consolidated Revenues
Second Quarter Consolidated Revenues (US$ millions) Q2 Revenues 667.4 586.2 % Change over Q2 2017 USD LC Outsourcing & Advisory 11% 8% Outsourcing & Advisory (1) 259.6 Sales Brokerage 8% 5% 233.6 Lease Brokerage 23% 21% Total 14% 11% Sales Brokerage 185.8 172.2 Revenue Mix Q2 2018 Q2 2017 Outsourcin
Slide 6: Second Quarter Geographic Split
Second Quarter Geographic Split (US$ millions) Q2 2018 Revenues Q2 2018 Adjusted EBITDA1 Asia Pacific Asia Pacific 128.8 15.4 19% 21% Americas 50% 36.2 23% 58% Americas EMEA 388.6 29% 149.6 EMEA 21.5 Q2 2017 Revenues Q2 2017 Adjusted EBITDA2 Asia Pacific Asia Pacific 118.7 12.7 20% 20% 59% 52% Ameri
Slide 7: Americas
Americas (US$ millions) • Revenues up 11% in local currencies, with 7% from internal growth and 4% growth from recent acquisitions • Internal growth driven by leasing volumes, particularly in the US West region and Canada • Adjusted EBITDA up 10% with margins relatively flat Revenue Adjusted EBITDA2
Slide 8: EMEA
EMEA (US$ millions) • Revenues up 15% in local currencies, with 14% growth from recent acquisitions and 1% from internal growth • Internal growth impacted by transaction timing and reduced project management activity • Adjusted EBITDA up 23% with margins relatively consistent to prior year Revenue A
Slide 9: Asia Pacific
Asia Pacific (US$ millions) • Revenues up 6% in local currencies, with 4% growth from recent acquisitions and 2% from internal growth • Adjusted EBITDA up 21% with margin improvement from operating leverage particularly in Asia Revenue Adjusted EBITDA2 (Adjusted EBITDA Margin) 128.8 118.7 Outsourcin
Slide 10: Capitalization & Capital Allocation
Capitalization & Capital Allocation (US$ millions) June 30, 2018 December 31, 2017 June 30, 2017 Highlights Cash $ 104.2 $ 108.5 $ 123.0 Total Debt 419.8 249.9 427.4 • Expanded ($1 billion capacity) and extended (April 2023) credit facility Net Debt $ 315.6 $ 141.4 $ 304.4 Redeemable non- 156.6 145.
Slide 11: Looking Ahead
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 • Adjusted
Slide 12: Harrison Street Investment Management
Harrison Street Investment Management
Slide 13: Harrison Street
Harrison Street Transformational Demographic Based Best in Class Investment Investing Returns Establishes New Platform Differentiated Strategies Proven Track Record $15.6B of AUM By Product Type Student Housing Seniors Housing 49% Investable Universe $2+ Trillion 3% 48% Storage Medical Office Close
Slide 14: Highly Regarded Investor Base
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 20.8% 14.0% Corporate Plans Multi-Managers & Fund of
Slide 15: Investment Management Platform
Investment Management Platform Stable $20+ Billion 15%+ Positive Leverage Recurring in AUM of Colliers industry platform & Revenues EBITDA dynamics capabilities • Harrison Street and existing investment management business • Recurring revenue streams • $115 - $130 million • EBITDA margins of 35 - 40
Slide 16: Appendix
Appendix Reconciliation of non-GAAP measures
Slide 17: Reconciliation of GAAP earnings to adjusted EBITDA
Appendix Reconciliation of GAAP earnings to adjusted EBITDA Three months ended Six months ended (US$ thousands) June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 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) I
Slide 18: 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 Six months ended (US$ thousands) June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Net earnings $ 28,804 $ 25,957 $ 37,343 $ 32,757 Non-controlling interest share of earnings (3
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