Colliers International Group Inc. · TSX:CIGI
Colliers International — Q4 2019 Earnings Presentation
22 slides from Colliers International's earnings presentation, Feb 12, 2020
Slide 1: Fourth Quarter 2019 Financial Results
February 12, 2020 Colliers International Group Inc. Fourth Quarter 2019 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: Fourth Quarter 2019 Results
Fourth Quarter 2019 Results • Solid operating results with growth in all service lines • Quarterly revenues up 4% (5% in local currency) with internal growth of 2% • Adjusted EBITDA up 8% (10% in local currency) • Adjusted EPS of $2.01, up 14% from the prior year quarter • Acquisition pipeline remai
Slide 4: Fourth Quarter 2019 Results Summary
Fourth Quarter 2019 Results Summary (US$ millions, except per share amounts) % Change over Q4 2018 Q4 2019 Q4 2018 (1) USD LC Revenue 928.3 889.9 4% 5% Adjusted EBITDA 144.3 133.2 8% 10% Adjusted EBITDA Margin 15.5% 15.0% Adjusted EPS 2.01 1.77 14% GAAP Operating Earnings 99.4 98.1 1% GAAP Operating
Slide 5: Fourth Quarter Consolidated Revenues
Fourth Quarter Consolidated Revenues (US$ millions) Q4 Revenues % Change over Q4 2018 USD LC 928.3 Investment Management 15% 15% 889.9 Outsourcing & Advisory 7% 8% Investment Management 44.7 38.9 Sales Brokerage 1% 3% 41% Lease Brokerage 3% 3% Outsourcing & Advisory (1) 331.2 308.7 Recurring Total 4
Slide 6: Full Year Consolidated Revenues
Full Year Consolidated Revenues (US$ millions) 2019 Revenues % Change over 2018 USD LC 3,045.8 Investment Management NM NM 2,825.4 Investment Management 174.6 Outsourcing & Advisory 8% 11% 76.0 Sales Brokerage -1% 2% 44% Lease Brokerage 5% 6% Recurring Outsourcing & Advisory (1) 1,148.9 1,064.6 Tota
Slide 7: Fourth Quarter Geographic Split
Fourth Quarter Geographic Split (US$ millions) Q4 2019 Revenues Q4 2019 Adjusted EBITDA1 Investment Management Investment 44.7 Management 16.5 5% 11% Asia Pacific Americas 171.7 50.2 19% 33% Asia Pacific 32.5 22% Americas 52% 486.0 24% EMEA 225.6 34% EMEA 51.2 Q4 2018 Revenues Q4 2018 Adjusted EBITD
Slide 8: Full Year Geographic Split
Full Year Geographic Split (US$ millions) 2019 Revenues 2019 Adjusted EBITDA1 Investment Management Investment 174.6 Management 6% 61.9 Asia Pacific 17% 542.6 18% Americas 41% 151.3 55% Americas Asia Pacific 20% 1,690.5 76.2 21% EMEA 636.5 22% EMEA 80.3 2018 Revenues 2018 Adjusted EBITDA2 Investment
Slide 9: Americas
Americas (US$ millions) • Revenues up 3% in local currency comprised of 5% contribution from acquisitions partly offset by slightly lower Sales and Lease Brokerage against a very strong prior year comparable • Adjusted EBITDA margin positively impacted by lower costs and operating leverage in Outsou
Slide 10: EMEA
EMEA (US$ millions) • Revenues up 6% in local currency comprised of 5% internal growth and 1% growth from acquisitions • Internal growth driven by strong Sales and Lease Brokerage activity, particularly in Germany, the Netherlands and Spain partly offset by a decline in Outsourcing & Advisory activi
Slide 11: Asia Pacific
Asia Pacific (US$ millions) • Revenues up 11% in local currency comprised of 6% internal growth and 5% growth from acquisitions • Internal growth across all service lines, led by Lease Brokerage and Outsourcing & Advisory • Acquisition growth primarily driven by the acquisition of Synergy which was
Slide 12: Investment Management
Investment Management (US$ millions) • Revenues up 15% in local currency and all internally generated, reflecting incremental management fees from new capital commitments • Adjusted EBITDA margin was primarily impacted by investments in additional resources to establish new fund products in 2020 • $
Slide 13: Capitalization & Capital Allocation
Capitalization & Capital Allocation (US$ millions) December 31, 2019 December 31, 2018 Cash $ 115.0 $ 127.0 Highlights Total Debt 611.4 672.1 • Net debt / pro forma adjusted EBITDA leverage of 1.4x at December 31, 2019 Net Debt $ 496.4 $ 545.1 • Down from 1.6x at December 31, 2018 Redeemable non- 35
Slide 14: Looking Ahead
Looking Ahead 2020 Consolidated full year outlook • Expecting stable market conditions, despite ongoing geopolitical events • High single-digit consolidated revenue growth, consisting of low to mid single-digit internal growth and the balance from completed acquisitions (including Dougherty Financia
Slide 15: Appendix: Reconciliation of non-GAAP measures
Appendix Reconciliation of non-GAAP measures
Slide 16: Reconciliation of GAAP earnings to adjusted EBITDA
Appendix Reconciliation of GAAP earnings to adjusted EBITDA Three months ended Twelve months ended (US$ thousands) December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Net earnings $ 67,877 $ 65,847 $ 137,585 $ 128,574 Income tax 25,742 25,428 53,013 53,260 Other income, net (868)
Slide 17: 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 Twelve months ended (US$ thousands) December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Net earnings $ 67,877 $ 65,847 $ 137,585 $ 128,574 Non-controlling interest
Slide 18: Appendix: Full year regional details
Appendix Full year regional details
Slide 19: Americas Full Year
Americas Full Year (US$ millions) • Revenues up 7% in local currency comprised of 6% growth from acquisitions and 1% internal growth • Strong internal growth in Outsourcing & Advisory services partly offset by a decline in Sales Brokerage • Adjusted EBITDA margin up slightly over last year as operat
Slide 20: EMEA Full Year
EMEA Full Year (US$ millions) • Revenues up 7% in local currency comprised of internal growth of 5% and 2% growth from acquisitions • Internal growth across all service lines led by strong Sales Brokerage activity in most major markets • Adjusted EBITDA margin impacted by in talent acquisition inves
Slide 21: Asia Pacific Full Year
Asia Pacific Full Year (US$ millions) • Revenues up 7% in local currency comprised of internal growth of 5% and 2% growth from acquisitions • Internal growth driven by Outsourcing & Advisory services • Adjusted EBITDA margin up slightly compared to 2018 Revenue Adjusted EBITDA2 (Adjusted EBITDA Marg
Slide 22: Investment Management Full Year
Investment Management Full Year (US$ millions) • Revenues up significantly over prior year reflecting the impact of the Harrison Street acquisition in mid-2018 • Internal growth of 20% represents incremental management fees on new capital commitments completed during the year Revenue Adjusted EBITDA
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