Colliers International Group Inc. · TSX:CIGI
Colliers International — Q4 2017 Earnings Presentation
20 slides from Colliers International's earnings presentation, Feb 14, 2018
Slide 1: Fourth Quarter 2017 Financial Results
Colliers International Group Inc. Fourth Quarter 2017 Financial Results February 14, 2018
Slide 2: Forward-Looking Statements
Colliers International 2018 Forward - Looking Statements 2 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 expect
Slide 3: Strong fourth quarter and full year results
Colliers International 2018 ▪ Strong fourth quarter and full year results ▪ Quarterly revenues up 27% (25% in local currencies) with internal growth of 13% ▪ Full year revenues up 20% (19% in local currencies) with internal growth of 7% ▪ Completed the acquisition of Washington, D.C. tenant advisory
Slide 4: 2017 Results Summary
Colliers International 2018 4 2017 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 734.2 576.0 27% 25% Adjusted EBITDA 101.1 90.4 12% 10% Adjusted EBITDA Margin 13.8% 15
Slide 5: Fourth Quarter 2017 Consolidated Revenues
Colliers International 2018 256.6 191.7 242.8 186.3 234.9 198.0 734.3 576.0 2017 2016 5 Outsourcing & Advisory (1) Sales Brokerage Lease Brokerage Q4 Revenue Fourth Quarter 2017 Consolidated Revenues (US$ millions) (1) Outsourcing & Advisory services include: Corporate Solutions, Valuation & Advisor
Slide 6: Full Year 2017 Consolidated Revenues
Colliers International 2018 755.9 604.3 725.9 574.5 793.7 717.9 2,275.4 1,896.7 2017 2016 6 Outsourcing & Advisory (1) Sales Brokerage Lease Brokerage Full Year Revenue Full Year 2017 Consolidated Revenues (US$ millions) (1) Outsourcing & Advisory services include: Corporate Solutions, Valuation & A
Slide 7: Fourth Quarter Geographic Split
Colliers International 2018 7 Q4 2017 Adjusted EBITDA (1) Fourth Quarter Geographic Split (US$ millions) Q4 2017 Revenue Q4 2016 Revenue Q4 2016 Adjusted EBITDA (2) (1) Q4 2017 GAAP Operating Earnings (Loss): $33.7M Americas, $31.1M EMEA, $26.8M Asia Pacific (2) Q4 2016 GAAP Operating Earnings (Loss
Slide 8: Full Year Geographic Split
Colliers International 2018 8 2017 Adjusted EBITDA (1) Full Year Geographic Split (US$ millions) 2017 Revenue 2016 Revenue 2016 Adjusted EBITDA (2) (1) 2017 GAAP Operating Earnings (Loss): $86.7M Americas, $47.9M EMEA, $55.7M Asia Pacific (2) 2016 GAAP Operating Earnings (Loss): $85.3M Americas, $34
Slide 9: Revenue Americas Q4
Colliers International 2018 ▪ Revenues up 37% in local currencies, with 21% growth from recent acquisitions and 16% from internal growth ▪ Internal growth was driven by very strong Lease Brokerage activity, particularly in the US, with several significant office leasing transactions completed in maj
Slide 10: Revenue EMEA Q4
Colliers International 2018 ▪ Revenues up 15% in local currencies, with 11% from internal growth and 4% growth from recent acquisitions ▪ Internal revenue growth benefited from a rebound in Sales Brokerage activity in the UK, relative to unusually low activity levels in the prior year period in the
Slide 11: Revenue Asia Pacific Q4
Colliers International 2018 ▪ Revenues up 9% in local currencies, with 8% from internal growth and 1% growth from a recent acquisition ▪ Internal growth was driven by notable increases in Lease Brokerage activity in Hong Kong and China as well as strong Outsourcing & Advisory throughout the region ▪
Slide 12: Capitalization & Capital Allocation Overview
Colliers International 2018 12 Highlights ▪ Net debt / pro forma adjusted EBITDA leverage of 0.6 at December 31, 2017 ▪ Strong 2017 acquisition momentum continued subsequent to year - end with Finland acquisition ▪ Full year capital expenditures of $39.5 million, slightly below guidance given for 20
Slide 13: 2018 Outlook
Colliers International 2018 ▪ 2018 Outlook o Predicated on stable market conditions, including modest economic growth and increases to interest rates o Low to mid single - digit percentage internal revenue growth on full year basis o Adjusted EBITDA margin improvement of 20 - 30 bps o Consolidated i
Slide 14: Appendix: Reconciliation of non-GAAP measures
Appendix: Reconciliation of non - GAAP measures
Slide 15: Reconciliation of GAAP earnings to adjusted EBITDA
Colliers International 2018 Reconciliation of GAAP earnings to adjusted EBITDA 15 (US$ thousands) Net earnings $ 42,788 $ 50,320 $ 92,132 $ 91,571 Income tax 37,106 23,691 63,300 47,829 Other income, net 1,868 (233) (500) (2,417) Interest expense, net 2,188 2,277 11,895 9,190 Operating earnings 83,9
Slide 16: Reconciliation of GAAP earnings to adjusted net earnings and adjusted EPS
Colliers International 2018 Reconciliation of GAAP earnings to adjusted net earnings and adjusted earnings per share 16 (US$ thousands) Net earnings $ 42,788 $ 50,320 $ 92,132 $ 91,571 Non-controlling interest share of earnings (7,772) (8,826) (20,236) (20,085) Income tax expense on enactment of US
Slide 17: Appendix: Full Year Regional Details
Appendix: Full Year Regional Details
Slide 18: Revenue Americas Full Year
Colliers International 2018 ▪ Revenues up 28% in local currencies, with 20% growth from recent acquisitions and 8% from internal growth ▪ Internal growth was evenly weighted among all three service lines ▪ Adjusted EBITDA up 15%, with growth impacted by (i) investment in people to strengthen operati
Slide 19: Revenue EMEA Full Year
Colliers International 2018 ▪ Revenues up 9% in local currencies, with 6% growth from recent acquisitions and 3% internal growth ▪ Internal revenue growth was concentrated in Sales Brokerage, primarily in the UK ▪ Adjusted EBITDA up 24%, reflecting operating leverage from higher revenues and revenue
Slide 20: Revenue Asia Pacific Full Year
Colliers International 2018 ▪ Revenues up 9% in local currencies, with 8% from internal growth and 1% growth from a recent acquisition ▪ All three service lines contributed to internal growth ▪ Adjusted EBITDA up 20%, reflecting operating leverage, particularly in Asia 104.5 94.6 182.7 167.7 154.3 1
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