Cbre Group Inc · NYSE:CBRE
Cbre — CB Richard Ellis Group — Q1 2006 Earnings Presentation
26 slides from Cbre's earnings presentation, May 3, 2006
Slide 1: CB Richard Ellis Group, Inc. First Quarter 2006 Earnings Conference Call
CB Richard Ellis Group, Inc. First Quarter 2006 Earnings Conference Call May 3, 2006 CBRE
Slide 2: Forward Looking Statements
Forwa' ooking 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 growth momentum in 2006, future operations and future financial performance. These statements should
Slide 3: Conference Call Participants
Conference Call Participants Brett White President & Chief Executive Officer Ken Kay Senior Executive Vice President & Chief Financial Officer Brian Stoffers President, Capital Markets Shelley Young Director, Investor Relations 100: CBRE 2 CB RICHARD ELLIS
Slide 4: Q1 2006 Summary
Q1 2006 Summary = 2005 momentum carried over into 2006 resulting in strong top and bottom line growth Commercial real estate continues to be a favored asset class and attract institutional and cross-border capital flows Most leasing markets are performing well, fueled by expanding economies and grow
Slide 5: Q1 2006 Performance Highlights
Qi 2006 Performance Highlights R $680.1 milion = $141.8 million, or 26% higher than the prior year quarter evenue = 14° straight quarter of double-digit year-over-year organic revenue growth Net GAAP: $36.9 million = $22.3 million, or 153% higher than the same quarter last year Income Adjusted: $40.
Slide 6: Q1 2006 Financial Results
Qi 2006 Financial Results {Sin mins) 2006 2005 _% Change Revenue 680.1 538.3 26 Cost of Senices 340.4 268.1 27 Operating, Administrative & Other 266.2 223.2 19 Equity Income from Unconsolidated Subsidiaries 84 3.9 15 Minority Interest Expense 02 o7 a EBITDA 827 50.2 65 ‘One Time Charges: Integration
Slide 7: Link to searchable text of slide shown above
Link to searchable text of slide shown above
Slide 8: Significant margin improvement
Significant margin improvement a 20 8 10 TTM 1st Guarter ans 38 133 2006 12a 161 105 mi 2006 100 EITDA nano olde apa eipened ili sequins CBRE 7
Slide 9: Q1 Earnings Per Share Dynamics
Qi Earnings Per Share Dynamics’ 2005 2006 $0.01 $0.48 ‘GAAP —_tntogration Amortization Ps charges rated to ‘acquisitions 1. AILEPS information is based upon diluted shares, 100:
Slide 10: Consolidated Balance Sheets
Consolidated Balance Sheets As of (Sn mors) 03/31/2006 12/31/2005 Variance. Assets Cash and cash equivalents 253.1 449.3 (196.2) Restricted cash 53 52 o4 Receivables, net 4204 483.2 658) Warehouse receivable’ 82.6 256.0 (173.4) Property and equipment, net 152.9 137.6 153 Goodwill and other intangibl
Slide 11: Consolidated Balance Sheets (continued)
lated Balance Sheets (con Asof (Sin ions) 03/31/2006 __ 12/31/2005 __Variance Liabilities Current liabilities, excluding debt 601.7 8537 (252.0) ‘Warehouse line of credit! 82.6 256.0 (173.4) Senior securedtermoan tranche B 262.3 265.2 29) 119% senior subordinated notes 163.4 163.0 o4 99% senior note
Slide 12: Capitalization
Capitalization Asof (Sn mons) 03/31/2006 1212005 _ Variance Cash 253.1 4493 (196.2) Senior secured term loan tranche B 2623 265.2 29) 11% senior subordinated notes 163.1 163.0 o4 9% senior notes 130.0 130.0 - Other debt! 30.1 19.0 414 Total debt 585.5 8772 83 Stockholders’ equity 844.8 793.7 51.1 To
Slide 13: 2006 Trailing Twelve Months Normalized Internal Cash Flow
2006 Trailing Twelve Months Normalized Internal Cash Flow = Strong cash flow generator % $99 million, or 63% improvement from same period last year senees) = Low capital intensity " Utilization of internal cash flow * Debt reduction — full redemption of the 114% senior subordinated notes of $163 mil
Slide 14: Recent Acquisitions
‘Groupe Avan. (Canada) ‘Aopraisal 2008 ‘Advocate Coreutng Group, ne ‘constuction and Project Management ‘1, 2006 «= Purchase price for these acquisitions was approximately $36 million revenue resulting from the now majority owned IKOMA and Noble Gibbons 100: . Inenotilere Developpement & Gestion Gei
Slide 15: Three-for-one split of the Company's common stock
ed a three-f I for-one split of | the Company’s common stock CBRE 14 Ca RICHARD ELUS 100
Slide 16: Q1 2006 Segment Performance
Q1 2006 Segment Performance (Qn miltons) = Global investment Americas EMEA Asia Pacific Management a al 72% 43% 9) a F F : : q a 586% % 175% é ee E z : 5 $193 $554 29 $139 100
Slide 17: CBRE Recent Wins
CBRE Recent Wins ied aN + Merck —Represented Merckin seling three manufacturing facilities in the US. and UK. totaling over 1.75 million sq. ft + Ikon Office Solutions — Provide Transaction Management services for ikon’s 1.5 million sq, ft. portfolio in the U.S., bringing our total portfolio for iko
Slide 18: Global Investment Management Carried Interest
Global Investment Management Carried Interest = Carried interest pertains to certain real estate investment funds from which CBRE earns an additional share of the profits from the fund once its performance meets certain financial hurdles "= Dedicated fund team leaders and executives in our investmen
Slide 19: Favorable Trends
Favorable Trends Investment Sales Strong capital flows and improving property income continue to underpin a strong environment for investment sales Properties are being purchased with more equity capital, lower leverage and higher cash yield expectations. Record levels of investment activity seen ac
Slide 20: Appendix
Appendix
Slide 21: Reconciliation of Net Income to Net Income, As Adjusted
Reconciliation of Net Income to Net Income, As Adjusted Three Months Ended March 31, (Sin millions) 2006 2005 Net income 36.9 146 Amortization expense related to net revenue backlog 3 . acquired in acquisitions, net of tax Integration costs related to acquisitions, net of tax 09 15 Loss on extinguis
Slide 22: Reconciliation of Normalized EBITDA to EBITDA to Net Income
Reconciliation of Normalized EBITDA to EBI to Net Income Three Months Ended March 31, (Sin millions) 2006 2005 Normalized EBITDA 84.0 52.7 Less: Integration costs related to 13 25 acquisitions EBITDA 82.7 50.2 Add: Interest income 3.6 25 Less: Depreciation and amortization 14.9 10.4 Interest expense
Slide 23: Reconciliation of Normalized EBITDA to EBITDA to Net Income (TTM)
lation of Normalized EBITDA to EBITDA to Net Income Trailing Twelve Months ($ in miions QA 2006 QA 2005 Normalized EBITDA 492.6 327.6 Less: Merger-related charges related to the 7 188 Insignia acquisition ° Integration costs related to acquisitions 5.9 11.6 One-time compensation expense related . oT
Slide 24: Reconciliation of Net Income to Net Income, As Adjusted (TTM)
Reconciliation of Net Income to Net Income, As Adjusted TTM 1st Quarter 2006 Results (ters) (a) Amortization expense related to net revenue backlog acquired in 00 acquisitions’ 250 (b) Integration costs related to acquisitions’ 200 . (c) Costs of extinguishment of debt’ 150 (d) Tax expense related t
Slide 25: Reconciliation of Normalized EBITDA to EBITDA to Operating Income
Reconciliation of Normalized EBITDA to EBITDA to Operating Income Tasos cry Tareas Toba reste arapemer nmin) 728 205 706 7208 Dos 205 28 208 pty neon tom Mace eeretceress) pated on 2 os an P on Basta sare Bs en or 07, “a rm “ 100 CBRE 2 CB RICHARD ELLIS
Slide 26: Searchable text section of graphics shown above
Searchable text section of graphics shown above CB Richard Ellis Group, Inc. First Quarter 2006 [GRAPHIC] Earnings Conference Call May 3, 2006 [LOGO] [LOGO] Forward Looking Statements This presentation contains statements that are forward looking within the meaning of the Private Securities Litigati
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