Cbre Group Inc · NYSE:CBRE
Cbre — CB Richard Ellis Group — Q2 2011 Earnings Presentation
21 slides from Cbre's earnings presentation, Jul 28, 2011
Slide 1: Second Quarter 2011 Earnings Conference Call
CB Richard Ellis Group, Inc. Second Quarter 2011 Earnings Conference Call July 28, 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 Q2 Highlights
Business Overview Q2 Highlights: Commercial real estate recovery continued despite economic uncertainty Total company revenue increased 21% to $1.4 billion with solid growth across all geographies Leasing and investment sales revenues improved by 22% and 44%, respectively Outsourcing revenue remaine
Slide 5: Q2 CBRE Wins
Q2 CBRE Wins MASSACHUSETS Vertex Pharmaceuticals CBRE spearheaded the largest single office lease transaction to occur in Boston’s history. Vertex Pharmaceuticals signed a deal to lease 1.1M SF for their new headquarters campus which consists of two new Class A buildings at Fan Pier. UNITED KINGDOM
Slide 6: Q2 2011 Performance Overview
Q2 2011 Performance Overview Q2 2011 Q2 2010 Revenue1 $1,423.6 million $1,172.9 million Net Income2 GAAP $61.2 million Adjusted $67.0 million GAAP $54.8 million Adjusted $58.8 million EPS2,3 GAAP $0.19 Adjusted $0.21 GAAP $0.17 Adjusted $0.18 EBITDA4 $166.1 million $161.6 million Normalized EBITDA4,
Slide 7: Revenue Breakdown 2nd Quarter 2011
Revenue Breakdown 2nd Quarter 2011 Includes revenue from discontinued operations of $1.4 million and $2.4 million for the three and six months ended June 30, 2011, respectively, and $1.0 million for the three and six months ended June 30, 2010. 35% 33% 16% 6% 4% 3% 1% 2% Three months ended June 30,
Slide 8: Outsourcing
Outsourcing CAGR 14% 1. Represents combined data for CBRE and TCC; does not include joint ventures and affiliates 1 Q2 2011 Wins 15 new 18 renewals 14 expansions Q2 Highlights: 47 long-term contracts signed in Q2 2011 All three geographic regions had double digit revenue growth Continued strong pipe
Slide 9: US Market Statistics
US Market Statistics Source: CBRE Econometric Advisors (EA) Outlooks Fall 2011 preliminary (based on 2Q 2011 data) Starting in Fall 2011 retail has been expanded to include strip centers, neighborhood centers and community centers US Vacancy US Absorption Trends (in millions of square feet) 2Q10 1Q1
Slide 10: Sales and Leasing Revenue - Americas
Sales and Leasing Revenue - Americas ($ in millions) Sales Leasing 55% 16% 68% 23% 2010 2011
Slide 11: Sales and Leasing Revenue – EMEA
Sales and Leasing Revenue – EMEA ($ in millions) Sales Leasing 10% 9% 12% 23% 2010 2011
Slide 12: Sales and Leasing Revenue – Asia Pacific
Sales and Leasing Revenue – Asia Pacific ($ in millions) Sales Leasing 40% 28% 16% 17% 2010 2011
Slide 13: Development Services Balance Sheet Participation
Development Services Balance Sheet Participation $79.4 million co-invested in Development Services at quarter end. $16.8 million in recourse debt to CBRE and repayment guarantees. 1. In Process figures include Long-Term Operating Assets (LTOA) of $1.4 billion for 2Q 11, $1.6 billion for 4Q 10, $1.4
Slide 14: Global Investment Management
Global Investment Management ($ in billions) ($ in millions) CAGR 18% CAGR 16% 1 Includes revenue from discontinued operations of $1.4 million and $2.4 million for the three and six months ended June 30, 2011, respectively. ING REIM Securities business acquisition closed on July 1st Remaining ING RE
Slide 15: Global Investment Management Pro-forma Normalized EBITDA
Global Investment Management Pro-forma Normalized EBITDA For the three months ended June 30, 2011, the Company recorded net carried interest incentive compensation expense of $5.3 million compared to a net reversal of $0.5 million in the comparable 2010 period, which were not associated with same pe
Slide 16: Mandatory Amortization and Maturity Schedule
Mandatory Amortization and Maturity Schedule $ millions 1. $700.0 million revolver facility matures in May 2015. As of June 30, 2011 the outstanding revolver balance was $111.2 million. As of June 30, 20111 - 200.0 400.0 600.0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Term Loan A Term Loan B
Slide 17: Capitalization
Capitalization 1. Net of original issue discount of $11.7 million and $12.3 million at June 30, 2011 and December 31, 2010, respectively. 2. Represents notes payable on real estate in Development Services that are recourse to the Company. Excludes non-recourse notes payable on real estate of $506.4
Slide 18: Business Outlook
Business Outlook We are early in the cyclical recovery with some expected bumps in the road to global economic recovery Outsourcing fundamentals remain strong and we continue to expect double digit growth Investment sales are expected to continue to grow at higher than normal rates Leasing growth is
Slide 19: GAAP Reconciliation Tables
GAAP Reconciliation Tables CB RICHARD ELLIS
Slide 20: Reconciliation of Normalized EBITDA to EBITDA to Net Income
Reconciliation of Normalized EBITDA to EBITDA to Net Income 1. Includes EBITDA related to discontinued operations of $0.8 million and $12.9 million for the three months ended June 30, 2011 and 2010, respectively. 2. Includes depreciation and amortization related to discontinued operations of $0.2 mi
Slide 21: Reconciliation of Net Income to Net Income, As Adjusted
Reconciliation of Net Income to Net Income, As Adjusted ($ in millions, except for per share data) 2011 2010 Net income attributable to CB Richard Ellis Group, Inc. 61.2 $ 54.8 $ Integration and other costs related to acquisitions, net of tax 3.9 0.6 Amortization expense related to customer relation
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