Colliers Reports Robust Second Quarter Results

Rhea-AI Summary

Colliers International Group (CIGI) reported strong Q2 2021 results, with revenues of $946 million, a 72% increase year-over-year. Adjusted EBITDA reached $136.6 million, up 128%, and adjusted EPS was $1.58, a 126% rise compared to the previous year. However, GAAP operating losses were $385.8 million, influenced by a $471.9 million settlement with its CEO. The company also announced a private placement of Senior Notes to enhance its liquidity, raising its full-year financial outlook based on positive momentum across service lines.

Positive

• Revenues increased by 72% year-over-year to $946 million.
• Adjusted EBITDA rose by 128% to $136.6 million.
• Adjusted EPS improved to $1.58, a 126% increase.
• Investment Management raised over $2 billion, increasing assets under management to $44 billion.
• Private placement of Senior Notes enhances liquidity to over $1 billion.

Negative

• GAAP operating loss of $385.8 million, including a $471.9 million settlement.
• GAAP diluted EPS loss of $10.53, indicating financial strain.

Strong momentum prompts further increase to 2021 financial outlook

Operating highlights:

		Three months ended							Six months ended
		June 30							June 30
(in millions of US$, except EPS)			2021			2020				2021			2020
Revenues		$	946.0		$	550.2			$	1,720.9		$	1,180.8
Adjusted EBITDA (note 1)			136.6			60.0				228.7			114.4
Adjusted EPS (note 2)			1.58			0.70				2.64			1.25
GAAP operating earnings			(385.8)*			14.5				(345.8)*			33.1
GAAP diluted EPS			(10.53)*			(0.26	)			(10.80)*			(0.14	)
* Includes $471.9 million settlement of Long-Term Incentive Arrangement with the Company's Chairman & CEO.

TORONTO, Aug. 04, 2021 (GLOBE NEWSWIRE) -- Colliers International Group Inc. (NASDAQ and TSX: CIGI) (“Colliers” or the “Company”) today announced operating and financial results for the second quarter ended June 30, 2021. All amounts are in US dollars.

For the quarter ended June 30, 2021, revenues were $946.0 million, up 72% (64% in local currency) relative to the same quarter in the prior year which was materially impacted by the early stages of the COVID-19 pandemic. Adjusted EBITDA (note 1) was $136.6 million, up 128% (116% in local currency) and adjusted EPS (note 2) was $1.58, up 126% versus the prior year period. Second quarter adjusted EPS would have been approximately $0.10 lower excluding foreign exchange impacts. The GAAP operating loss was $385.8 million and included a $471.9 million settlement of the Long-Term Incentive Arrangement (“LTIA”) with the Company's Chairman & CEO as approved by 95% of the Company’s disinterested shareholders. The GAAP diluted loss per share was $10.53. Second quarter GAAP EPS would have been approximately $0.11 lower excluding changes in foreign exchange rates.

For the six months ended June 30, 2021, revenues were $1.72 billion, up 46% (40% in local currency) relative to the same period in the prior year, adjusted EBITDA (note 1) was $228.7 million, up 100% (91% in local currency) versus prior year and adjusted EPS (note 2) was $2.64, up 111% versus prior year. Six months ended June 30, 2021 adjusted EPS would have been approximately $0.14 lower excluding foreign exchange impacts. The GAAP operating loss was $345.8 million and included the settlement of the LTIA. The GAAP diluted loss per share was $10.80. Second quarter GAAP EPS would have been approximately $0.15 lower excluding changes in foreign exchange rates.

“Colliers reported robust second quarter results with strong momentum across all services lines, “ said Jay S. Hennick, Chairman & CEO of Colliers. “During the quarter, both Capital Markets and Leasing were up materially when compared to the prior year period. Compared to 2019 pre-pandemic levels, revenues from Capital Markets were up significantly while Leasing partially recovered but remained below 2019 levels. Our Outsourcing & Advisory and Investment Management service lines posted high teens internal growth rates. Investment Management had another record fundraising quarter, raising more than $2 billion and bringing total assets under management to more than $44 billion. Each of Colliers Engineering & Design and Colliers Mortgage delivered excellent year over year performance as we continue to develop these growth engines for the future. Based on our strong results to date, we are again raising our full year financial outlook. Finally, after quarter-end, Colliers announced the private placement of a new series of Senior Notes, providing incremental low cost and long-term debt capital and bringing our overall liquidity for future growth to more than $1 billion. With our proven track record, balanced and diversified business model, unique enterprising culture and significant inside ownership, Colliers is well positioned to continue creating shareholder value for many years to come,” he concluded.

About Colliers
Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 66 countries, our more than 15,000 enterprising professionals work collaboratively to provide expert advice to real estate occupiers, owners and investors. For more than 25 years, our experienced leadership with significant insider ownership has delivered compound annual investment returns of almost 20% for shareholders. With annualized revenues of $3.3 billion ($3.6 billion including affiliates) and $45 billion of assets under management, we maximize the potential of property and accelerate the success of our clients and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn.

Consolidated Revenues by Line of Service

	Three months ended								Six months ended
(in thousands of US$)	June 30					Change	Change		June 30					Change	Change
(LC = local currency)	2021			2020		in US$ %	in LC%		2021			2020		in US$ %	in LC%
Outsourcing & Advisory	$	388,661		$	257,044	51%	43%		$	728,777		$	534,334	36%	30%
Investment Management		50,477			41,389	22%	21%			95,104			87,214	9%	9%
Leasing		241,257			136,768	76%	69%			420,917			301,278	40%	35%
Capital Markets		265,599			115,005	131%	119%			476,110			258,008	85%	76%
Total revenues	$	945,994		$	550,206	72%	64%		$	1,720,908		$	1,180,834	46%	40%

Consolidated revenues for the second quarter increased 64% on a local currency basis, driven by strong Capital Markets and Leasing activity and the impact of recent acquisitions. Consolidated internal revenues measured in local currencies were up 47% (note 3), versus prior year quarter results which were impacted by the COVID-19 pandemic. Relative to 2019 pre-pandemic peak levels, second quarter 2021 Capital Markets revenues were up 34% on an internal local currency basis, while Leasing revenues recovered to within 9% of 2019 levels.

For the six months ended June 30, 2021, consolidated revenues increased 40% on a local currency basis driven by a rebound in Capital Markets and Leasing activity and the impact of recent acquisitions, versus prior year results which were impacted by the pandemic beginning in March 2020. Consolidated internal revenues measured in local currencies were up 23% (note 3). Relative to 2019 pre-pandemic peak levels, year to date 2021 Capital Markets revenues were up 23% on an internal local currency basis, while Leasing revenues recovered to within 8% of 2019 levels.

Segmented Second Quarter Results
Revenues in the Americas region totalled $582.8 million for the second quarter, up 89% (84% in local currency) versus $308.9 million in the prior year quarter. Revenue growth was driven by strong Capital Markets and Leasing activity across most major markets and the incremental impact of recent acquisitions, versus prior year results which were impacted by the pandemic. Adjusted EBITDA was $78.9 million, up 224% from $24.4 million in the prior year quarter. The increase was driven by higher revenues and reduced costs from measures implemented during the pandemic. GAAP operating earnings were $63.2 million, relative to $3.4 million in the prior year quarter.

Revenues in the EMEA region totalled $158.6 million for the second quarter compared to $99.6 million in the prior year quarter, up 59% (45% in local currency). Revenue growth was strong across all service lines, particularly Capital Markets, relative to reduced levels in the prior year quarter impacted by the pandemic. Adjusted EBITDA was $20.6 million, up 226% from $6.3 million in the prior year on higher revenues and cost savings from measures implemented during the pandemic. The GAAP operating earnings were $14.4 million versus a loss of $3.3 million in the prior year quarter.

Revenues in the Asia Pacific region totalled $154.0 million for the second quarter compared to $100.1 million in the prior year quarter, up 54% (38% in local currency). Revenue growth was robust across all service lines and geographies, particularly in Australia and New Zealand, versus pandemic-impacted prior year quarter results. Adjusted EBITDA was $20.7 million, up 69% from $12.3 million in the prior year quarter with the improvement in margin attributable to operating leverage and a lower cost base from measures implemented during the pandemic. GAAP operating earnings were $16.7 million, versus $5.1 million in the prior year quarter.

Investment Management revenues for the second quarter were $50.5 million compared to $41.4 million in the prior year quarter, up 22% (21% in local currency). Revenue growth was driven by management fee growth from increased assets under management. Neither the current year quarter nor the prior year quarter included carried interest revenues. Adjusted EBITDA was $21.3 million, relative to $17.4 million in the prior year quarter, up 23%. GAAP operating earnings were $14.2 million in the quarter, versus $10.6 million in the prior year quarter. Assets under management were $44.5 billion at June 30, 2021, up 13% from $39.5 billion at December 31, 2020 and up 25% from $35.7 billion at June 30, 2020.

Unallocated global corporate costs as reported in Adjusted EBITDA were $5.0 million in the second quarter, relative to $0.3 million in the prior year quarter, with the change primarily attributable to incentive compensation accruals recorded in the current year period. The corporate GAAP operating loss for the quarter was $494.3 million. Excluding the impact of the LTIA, corporate GAAP operating loss was $22.3 million, relative to a loss of $1.4 million in the second quarter of 2020 attributable to an increase in the fair value of contingent acquisition consideration on strong operating performance of recently acquired businesses as well as incentive compensation accruals.

2021 Outlook
Given stronger than anticipated operating results for the second quarter, the Company is increasing its previously provided financial outlook. However, a number of uncertainties remain which could impact our outlook, including: (i) the emergence of COVID-19 variants around the world; and (ii) certain operating costs, reduced in light of the pandemic, are expected to increase in the second half of the year as restrictions ease which may temper margin expansion. The outlook for the full year 2021 (relative to 2020), including the impact of completed acquisitions, is as follows:

	Full Year 2021 Outlook
	Updated	Previous
Revenue	+20% to +30%	+15% to +30%
Adjusted EBITDA	+25% to +35%	+15% to +30%

This financial outlook is based on the Company’s best available information as of the date of this press release and remains subject to change based on numerous macroeconomic, health, social, geo-political and related factors.

Settlement of Long-Term Incentive Arrangement
On April 16, 2021, after receiving approval from 95% of disinterested shareholders, the Company completed the previously announced transaction (the “Transaction”) to settle the Management Services Agreement, including the LTIA, between Colliers, Jay S. Hennick and Jayset Management CIG Inc., a corporation controlled by Mr. Hennick. The Transaction also established a timeline for the orderly elimination of Colliers’ dual class voting structure by no later than September 1, 2028. The completion of the Transaction resulted in the issuance of 3.6 million Subordinate Voting Shares from treasury and a cash payment of $96.2 million funded from the Company’s revolving credit facility, which were recorded as an expense of $471.9 million on the statement of earnings during the second quarter of 2021.

Mr. Hennick remains Chairman & Chief Executive Officer of the Company and has control and direction over a total of 4.6 million Subordinate Voting Shares and 1.3 million Multiple Voting Shares of Colliers representing an aggregate of 13.5% of the outstanding shares and 45.0% of the votes.

Private Placement of Senior Notes
On July 28, 2021 the Company entered into a note purchase agreement to issue US dollar and Euro fixed rate senior unsecured notes (the “Senior Notes”), consisting of US$150 million of 3.02% Notes due 2031 and €125 million of 1.52% Notes due 2031. The Senior Notes were placed privately and rank equally with Colliers’ senior unsecured revolving credit facility and existing senior unsecured Euro notes due 2028. The proceeds of the issuances are expected to be drawn on or about October 7, 2021. Colliers intends to use the proceeds for general corporate purposes and to reduce outstanding borrowings under its revolving credit facility.

Conference Call
Colliers will be holding a conference call on Wednesday, August 4, 2021 at 11:00 a.m. Eastern Time to discuss the quarter’s results. The call, as well as a supplemental slide presentation, will be simultaneously web cast and can be accessed live or after the call at corporate.colliers.com in the Events section.

Forward-looking Statements
This press release 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 known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from any future results, performance or achievements contemplated in the forward-looking statements. Such factors include: economic conditions, especially as they relate to commercial and consumer credit conditions and consumer spending, particularly in regions where our business may be concentrated; commercial real estate property values, vacancy rates and general conditions of financial liquidity for real estate transactions; trends in pricing and risk assumption for commercial real estate services; the effect of significant movements in average capitalization rates across different property types; a reduction by companies in their reliance on outsourcing for their commercial real estate needs, which would affect revenues and operating performance; competition in the markets served by the Company; the ability to attract new clients and to retain major clients and renew related contracts; the ability to retain and incentivize producers; increases in wage and benefit costs; the effects of changes in interest rates on the cost of borrowing; unexpected increases in operating costs, such as insurance, workers’ compensation and health care; changes in the frequency or severity of insurance incidents relative to historical experience; the effects of changes in foreign exchange rates in relation to the US dollar on the Company’s Canadian dollar, Euro, Australian dollar and UK pound sterling denominated revenues and expenses; the impact of pandemics on client demand for the Company’s services, the ability of the Company to deliver its services and the health and productivity of its employees; the impact of political events including elections, referenda, trade policy changes, immigration policy changes, hostilities and terrorism on the Company’s operations; the ability to identify and make acquisitions at reasonable prices and successfully integrate acquired operations; the ability to execute on, and adapt to, information technology strategies and trends; the ability to comply with laws and regulations related to our global operations, including real estate and mortgage banking licensure, labour and employment laws and regulations, as well as the anti-corruption laws and trade sanctions; and changes in government laws and policies at the federal, state/provincial or local level that may adversely impact the business.

Additional information and risk factors are identified in the Company’s other periodic filings with Canadian and US securities regulators (which factors are adopted herein and a copy of which can be obtained at www.sedar.com). Forward looking statements contained in this press release are made as of the date hereof and are subject to change. All forward-looking statements in this press release are qualified by these cautionary statements. Except as required by applicable law, Colliers undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Summary financial information is provided in this press release. This press release should be read in conjunction with the Company's annual consolidated financial statements and MD&A to be made available on SEDAR at www.sedar.com.

Notes
Non-GAAP Measures
1. Reconciliation of net earnings to adjusted EBITDA:

Adjusted EBITDA is defined as net earnings, adjusted to exclude: (i) income tax; (ii) other expense (income); (iii) interest expense; (iv) the settlement of the LTIA; (v) depreciation and amortization, including amortization of mortgage servicing rights (“MSRs”); (vi) gains attributable to MSRs; (vii) acquisition-related items (including contingent acquisition consideration fair value adjustments, contingent acquisition consideration-related compensation expense and transaction costs); (viii) restructuring costs and (ix) stock-based compensation expense. We use adjusted EBITDA to evaluate our own operating performance and our ability to service debt, as well as an integral part of our planning and reporting systems. Additionally, we use this measure in conjunction with discounted cash flow models to determine the Company’s overall enterprise valuation and to evaluate acquisition targets. We present adjusted EBITDA as a supplemental measure because we believe such measure is useful to investors as a reasonable indicator of operating performance because of the low capital intensity of the Company’s service operations. We believe this measure is a financial metric used by many investors to compare companies, especially in the services industry. This measure is not a recognized measure of financial performance under GAAP in the United States, and should not be considered as a substitute for operating earnings, net earnings or cash flow from operating activities, as determined in accordance with GAAP. Our method of calculating adjusted EBITDA may differ from other issuers and accordingly, this measure may not be comparable to measures used by other issuers. A reconciliation of net earnings to adjusted EBITDA appears below.

	Three months ended								Six months ended
	June 30								June 30
(in thousands of US$)	2021				2020				2021				2020
Net earnings	$	(412,601	)		$	6,483			$	(387,794	)		$	12,942
Income tax		20,872				2,127				29,719				7,326
Other income, including equity earnings from non-consolidated investments		(1,964	)			(266	)			(3,946	)			(970	)
Interest expense, net		7,916				6,179				16,200				13,763
Operating earnings		(385,777	)			14,523				(345,821	)			33,061
Settlement of LTIA		471,928				-				471,928				-
Depreciation and amortization		34,574				25,940				72,351				50,830
Gains attributable to MSRs		(5,841	)			(509	)			(14,916	)			(509	)
Equity earnings from non-consolidated investments		1,732				414				3,138				969
Acquisition-related items		16,695				3,784				35,542				6,534
Restructuring costs		650				13,839				943				19,307
Stock-based compensation expense		2,597				1,971				5,522				4,224
Adjusted EBITDA	$	136,558			$	59,962			$	228,687			$	114,416

2. Reconciliation of net earnings and diluted net earnings per common share to adjusted net earnings and adjusted EPS:

Adjusted EPS is defined as diluted net earnings per share as calculated under the “if-converted” method, adjusted for the effect, after income tax, of: (i) the non-controlling interest redemption increment; (ii) the settlement of the LTIA; (iii) amortization expense related to intangible assets recognized in connection with acquisitions and MSRs; (iv) gains attributable to MSRs; (v) acquisition-related items; (vi) restructuring costs and (vii) stock-based compensation expense. We believe this measure is useful to investors because it provides a supplemental way to understand the underlying operating performance of the Company and enhances the comparability of operating results from period to period. Adjusted EPS is not a recognized measure of financial performance under GAAP, and should not be considered as a substitute for diluted net earnings per share from continuing operations, as determined in accordance with GAAP. Our method of calculating this non-GAAP measure may differ from other issuers and, accordingly, this measure may not be comparable to measures used by other issuers. A reconciliation of net earnings to adjusted net earnings and of diluted net earnings per share to adjusted EPS appears below.

Adjusted EPS is calculated using the “if-converted” method of calculating earnings per share in relation to the Convertible Notes, which were issued on May 19, 2020. As such, the interest (net of tax) on the Convertible Notes is added to the numerator and the additional shares issuable on conversion of the Convertible Notes are added to the denominator of the earnings per share calculation to determine if an assumed conversion is more dilutive than no assumption of conversion. The “if-converted” method is used if the impact of the assumed conversion is dilutive. For the three months and six months ended June 30, 2021 and June 30, 2020, the “if-converted” method is anti-dilutive for the GAAP diluted EPS calculation but dilutive for the adjusted EPS calculation.

		Three months ended								Six months ended
		June 30								June 30
(in thousands of US$)		2021				2020				2021				2020
Net earnings		$	(412,601	)		$	6,483			$	(387,794	)		$	12,942
Non-controlling interest share of earnings			(11,745	)			(4,265	)			(19,525	)			(7,642	)
Interest on Convertible Notes			2,300				1,059				4,600				1,059
Settlement of LTIA			471,928				-				471,928				-
Amortization of intangible assets			23,533				17,089				50,871				33,101
Gains attributable to MSRs			(5,841	)			(509	)			(14,916	)			(509	)
Acquisition-related items			16,695				3,784				35,542				6,534
Restructuring costs			650				13,839				943				19,307
Stock-based compensation expense			2,597				1,971				5,522				4,224
Income tax on adjustments			(8,517	)			(7,442	)			(18,183	)			(13,247	)
Non-controlling interest on adjustments			(3,460	)			(2,447	)			(6,795	)			(4,597	)
Adjusted net earnings		$	75,539			$	29,562			$	122,193			$	51,172
		Three months ended								Six months ended
		June 30								June 30
(in US$)		2021				2020				2021				2020
Diluted net earnings per common share(1)		$	(9.53	)		$	(0.25	)		$	(9.75	)		$	(0.14	)
Interest on Convertible Notes, net of tax			0.04				0.02				0.07				0.02
Non-controlling interest redemption increment			0.67				0.30				0.96				0.27
Settlement of LTIA			9.86				-				10.19				-
Amortization expense, net of tax			0.29				0.25				0.66				0.49
Gains attributable to MSRs, net of tax			(0.07	)			(0.01	)			(0.18	)			(0.01	)
Acquisition-related items			0.26				0.10				0.56				0.17
Restructuring costs, net of tax			0.01				0.24				0.01				0.35
Stock-based compensation expense, net of tax			0.05				0.05				0.12				0.10
Adjusted EPS		$	1.58			$	0.70			$	2.64			$	1.25
Diluted weighted average shares for Adjusted EPS (thousands)			47,846				41,901				46,303				41,021
(1 )Amounts shown reflect the "if-converted" method's dilutive impact on the adjusted EPS calculation for the three and six months ended June 30, 2021 and 2020.

3. Local currency revenue growth rate and internal revenue growth rate measures

Percentage revenue variances presented on a local currency basis are calculated by translating the current period results of our non-US dollar denominated operations to US dollars using the foreign currency exchange rates from the periods against which the current period results are being compared. Percentage revenue variances presented on an internal growth basis are calculated assuming no impact from acquired entities in the current and prior periods. Revenue from acquired entities, including any foreign exchange impacts, are treated as acquisition growth until the respective anniversaries of the acquisitions. We believe that these revenue growth rate methodologies provide a framework for assessing the Company’s performance and operations excluding the effects of foreign currency exchange rate fluctuations and acquisitions. Since these revenue growth rate measures are not calculated under GAAP, they may not be comparable to similar measures used by other issuers.

4. Assets under management

We use the term assets under management (“AUM”) as a measure of the scale of our Investment Management operations. AUM is defined as the gross market value of operating assets and the projected gross cost of development properties of the funds, partnerships and accounts to which we provide management and advisory services, including capital that such funds, partnerships and accounts have the right to call from investors pursuant to capital commitments. Our definition of AUM may differ from those used by other issuers and as such may not be directly comparable to similar measures used by other issuers.

COLLIERS INTERNATIONAL GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands of US$, except per share amounts)
			Three months								Six months
			ended June 30								ended June 30
(unaudited)			2021				2020				2021				2020
Revenues		$	945,994			$	550,206			$	1,720,908			$	1,180,834
Cost of revenues			576,652				355,347				1,044,382				771,705
Selling, general and administrative expenses			231,922				150,612				442,526				318,704
Depreciation			11,041				8,851				21,480				17,729
Amortization of intangible assets			23,533				17,089				50,871				33,101
Acquisition-related items (1)			16,695				3,784				35,542				6,534
Settlement of long-term incentive arrangement			471,928				-				471,928				-
Operating earnings			(385,777	)			14,523				(345,821	)			33,061
Interest expense, net			7,916				6,179				16,200				13,763
Equity earnings from unconsolidated investments			(1,732	)			(414	)			(3,138	)			(969	)
Other (income) loss			(232	)			148				(808	)			(1	)
Earnings before income tax			(391,729	)			8,610				(358,075	)			20,268
Income tax			20,872				2,127				29,719				7,326
Net earnings			(412,601	)			6,483				(387,794	)			12,942
Non-controlling interest share of earnings			11,745				4,265				19,525				7,642
Non-controlling interest redemption increment			31,771				12,530				44,311				11,025
Net earnings attributable to Company		$	(456,117	)		$	(10,312	)		$	(451,630	)		$	(5,725	)
Net earnings per common share
Basic		$	(10.53	)		$	(0.26	)		$	(10.80	)		$	(0.14	)
Diluted (2)		$	(10.53	)		$	(0.26	)		$	(10.80	)		$	(0.14	)
Adjusted EPS (3)		$	1.58			$	0.70			$	2.64			$	1.25
Weighted average common shares (thousands)
Basic			43,329				39,930				41,801				39,902
Diluted			43,329				39,930				41,801				39,902

Notes to Condensed Consolidated Statements of Earnings

(1)	Acquisition-related items include contingent acquisition consideration fair value adjustments, contingent acquisition consideration-related compensation expense and transaction costs.
(2)	Diluted EPS is calculated using the “if-converted” method of calculating earnings per share in relation to the Convertible Notes, which were issued on May 19, 2020. As such, the interest (net of tax) on the Convertible Notes is added to the numerator and the additional shares issuable on conversion of the Convertible Notes are added to the denominator of the earnings per share calculation to determine if an assumed conversion is more dilutive than no assumption of conversion. The “if-converted” method is used if the impact of the assumed conversion is dilutive. The “if-converted” method is anti-dilutive for the three-month and six-month periods ended June 30, 2021 and June 30, 2020.
(3)	See definition and reconciliation above.

COLLIERS INTERNATIONAL GROUP INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands of US$)
		June 30,			December 31,			June 30,
(unaudited)		2021			2020			2020
Assets
Cash and cash equivalents		$	147,515		$	156,614		$	147,169
Restricted cash (1)			30,052			20,919			19,069
Accounts receivable and contract assets			456,217			433,250			341,778
Warehouse receivables (2)			62,838			232,207			30,586
Prepaids and other assets			205,294			192,821			177,674
	Current assets		901,916			1,035,811			716,276
Other non-current assets			100,526			94,679			87,980
Fixed assets			139,598			129,221			107,207
Operating lease right-of-use assets			319,768			288,134			260,613
Deferred tax assets, net			55,167			45,008			50,308
Goodwill and intangible assets			1,663,937			1,699,314			1,572,605
	Total assets	$	3,180,912		$	3,292,167		$	2,794,989
Liabilities and shareholders' equity
Accounts payable and accrued liabilities		$	736,393		$	748,660		$	568,933
Other current liabilities			131,336			53,661			50,947
Long-term debt - current			2,142			9,024			7,397
Warehouse credit facilities (2)			55,566			218,018			24,586
Operating lease liabilities - current			81,144			78,923			68,417
	Current liabilities		1,006,581			1,108,286			720,280
Long-term debt - non-current			537,956			470,871			619,809
Operating lease liabilities - non-current			298,668			251,680			230,366
Other liabilities			103,658			158,366			102,676
Deferred tax liabilities, net			38,729			50,523			24,329
Convertible notes			224,578			223,957			223,462
Redeemable non-controlling interests			448,271			442,375			375,057
Shareholders' equity			522,471			586,109			499,010
	Total liabilities and equity	$	3,180,912		$	3,292,167		$	2,794,989
Supplemental balance sheet information
Total debt (3)		$	540,098		$	479,895		$	627,206
Total debt, net of cash and cash equivalents (3)			392,583			323,281			480,037
Net debt / pro forma adjusted EBITDA ratio (4)			0.9			1.0			1.5

Note to Condensed Consolidated Balance Sheets

(1)	Restricted cash consists primarily of cash amounts set aside to satisfy legal or contractual requirements arising in the normal course of business.
(2)	Warehouse receivables represent mortgage loans receivable, the majority of which are offset by borrowings under warehouse credit facilities which fund loans that financial institutions have committed to purchase.
(3)	Excluding warehouse credit facilities and convertible notes.
(3)	Net debt for financial leverage ratio excludes restricted cash, warehouse credit facilities and convertible notes, in accordance with debt agreements.

COLLIERS INTERNATIONAL GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of US$)
				Three months ended								Six months ended
				June 30								June 30
(unaudited)				2021				2020				2021				2020
Cash provided by (used in)
Operating activities
Net earnings (loss)			$	(412,601	)		$	6,483			$	(387,794	)		$	12,942
Items not affecting cash:
	Depreciation and amortization			34,574				25,940				72,351				50,830
	Settlement of long-term incentive arrangement			375,742				-				375,742				-
	Gains attributable to mortgage servicing rights			(5,841	)			(509	)			(14,916	)			(509	)
	Gains attributable to the fair value of loan premiums and origination fees			(10,705	)			(1,810	)			(22,283	)			(1,810	)
	Deferred income tax			(13,073	)			(6,839	)			(22,504	)			(13,997	)
	Other			19,394				11,163				61,285				24,603
				(12,510	)			34,428				61,881				72,059
(Increase) decrease in accounts receivable, prepaid
	expenses and other assets			(55,446	)			16,018				(79,233	)			75,855
(Decrease) increase in accounts payable, accrued
	expenses and other liabilities			14,331				(5,495	)			1,779				(34,254	)
(Decrease) increase in accrued compensation				82,799				(17,855	)			(1,677	)			(181,261	)
Contingent acquisition consideration paid				(2,997	)			(1,354	)			(10,472	)			(15,684	)
Proceeds from sale of mortgage loans				757,113				89,979				1,595,030				89,979
Origination of mortgage loans				(690,415	)			(87,099	)			(1,397,200	)			(87,099	)
Increase in warehouse credit facilities				(50,371	)			(263	)			(162,452	)			(263	)
Repurchases from AR Facility, net of sales				14,183				(1,276	)			10,892				(12,285	)
Net cash provided by (used in) operating activities				56,687				27,083				18,548				(92,953	)
Investing activities
Acquisition of businesses, net of cash acquired				(366	)			(133,840	)			(4,207	)			(136,941	)
Purchases of fixed assets				(10,510	)			(10,290	)			(32,603	)			(19,029	)
Purchase of held for sale real estate assets				-				94,222				-				94,222
Cash collections on AR facility deferred purchase price				11,824				15,069				22,732				26,459
Other investing activities				(9,696	)			(1,104	)			(20,789	)			804
Net cash used in investing activities				(8,748	)			(35,943	)			(34,867	)			(34,485	)
Financing activities
Increase in long-term debt, net				16,140				(118,002	)			69,932				25,144
Purchases of non-controlling interests, net of sales				(13,707	)			(19,719	)			(21,840	)			(24,395	)
Dividends paid to common shareholders				-				-				(2,009	)			(1,992	)
Distributions paid to non-controlling interests				(21,305	)			(14,293	)			(35,228	)			(21,986	)
Other financing activities				1,496				(5,165	)			6,464				(13,638	)
Net cash (used in) provided by financing activities				(17,376	)			72,821				17,319				193,133
Effect of exchange rate changes on cash				888				(813	)			(966	)			(14,450	)
Increase in cash and cash
	equivalents and restricted cash			31,451				63,148				34				51,245
Cash and cash equivalents and
	restricted cash, beginning of period			146,116				103,090				177,533				114,993
Cash and cash equivalents and
	restricted cash, end of period		$	177,567			$	166,238			$	177,567			$	166,238

 

COLLIERS INTERNATIONAL GROUP INC.
SEGMENTED RESULTS
(in thousands of US dollars)
									Asia			Investment
(unaudited)		Americas			EMEA				Pacific			Management			Corporate				Consolidated
Three months ended June 30
2021
	Revenues	$	582,769		$	158,571			$	154,018		$	50,477		$	159			$	945,994
	Adjusted EBITDA		78,923			20,640				20,677			21,330			(5,012	)			136,558
	Operating earnings (loss)		63,239			14,393				16,692			14,157			(494,258	)			(385,777	)
2020
	Revenues	$	308,885		$	99,614			$	100,105		$	41,389		$	213			$	550,206
	Adjusted EBITDA		24,376			6,323				12,255			17,350			(342	)			59,962
	Operating earnings (loss)		3,415			(3,267	)			5,091			10,648			(1,364	)			14,523
									Asia			Investment
		Americas			EMEA				Pacific			Management			Corporate				Consolidated
Six months ended June 30
2021
	Revenues	$	1,058,546		$	284,684			$	282,269		$	95,104		$	305			$	1,720,908
	Adjusted EBITDA		135,849			25,144				36,195			39,075			(7,576	)			228,687
	Operating earnings (loss)		106,092			13,304				28,400			24,088			(517,705	)			(345,821	)
2020
	Revenues	$	678,875		$	216,696			$	197,539		$	87,214		$	510			$	1,180,834
	Adjusted EBITDA		55,534			2,682				17,503			35,784			2,914				114,417
	Operating earnings (loss)		26,125			(16,718	)			6,319			22,426			(5,091	)			33,061

 

COMPANY CONTACTS:
Jay S. Hennick
Chairman & Chief Executive Officer

Christian Mayer
Chief Financial Officer
(416) 960-9500

 

 

 

 

 

 

 

 

FAQ

What were Colliers International's Q2 2021 revenues?

Colliers International reported revenues of $946 million for Q2 2021.

How much did Colliers International's adjusted EPS rise in 2021?

Adjusted EPS for Colliers International rose to $1.58, reflecting a 126% increase.

What was the GAAP operating loss for Colliers International in Q2 2021?

Colliers International reported a GAAP operating loss of $385.8 million in Q2 2021.

How much did Investment Management raise in Q2 2021?

Investment Management raised over $2 billion in Q2 2021.

What is Colliers International's stock symbol?

The stock symbol for Colliers International is CIGI.