Net Income Up 47% and GAAP EPS Up 48% to $1.16
Core Adjusted Net Income Up 71% and Core EPS Up 72% to $1.39
DALLAS--(BUSINESS WIRE)--CBRE Group, Inc. (NYSE:CBRE) today reported financial results for the first quarter ended March 31, 2022.
“The year has started out strong for CBRE with excellent momentum across all three business segments. We continue to execute a strategy to diversify our business – both organically and through investment – broadly across asset types, lines of business, clients and geographies. Our performance for the quarter drives home how effectively this strategy is working,” said Bob Sulentic, CBRE’s president and chief executive officer. “We generate significant cash that is being strategically deployed into growth areas of our business. Notably, Turner & Townsend continues to perform ahead of our expectations, both financially and operationally, and we are enthusiastic about the added dimensions they bring to CBRE, particularly in infrastructure, natural resources and sustainability services. At the same time that we are investing in our business, we are returning cash to shareholders at an elevated clip, with share repurchases totaling $627 million thus far this year.”
Consolidated Financial Results Overview
The following table presents highlights of CBRE performance (dollars in millions, except per share data):
|
|
|
|
|
% Change |
|||||||||
|
Q1 2022 |
|
Q1 2021 |
|
USD |
|
LC (1) |
|||||||
Operating Results |
|
|
|
|
|
|
|
|||||||
Revenue |
$ |
7,333 |
|
|
$ |
5,939 |
|
|
23.5 |
% |
|
25.5 |
% |
|
Net revenue (2) |
|
4,376 |
|
|
|
3,359 |
|
|
30.3 |
% |
|
32.5 |
% |
|
GAAP net income |
|
392 |
|
|
|
266 |
|
|
47.4 |
% |
|
50.0 |
% |
|
GAAP EPS |
$ |
1.16 |
|
|
$ |
0.78 |
|
|
48.4 |
% |
|
51.1 |
% |
|
Core adjusted net income (3) |
|
469 |
|
|
|
275 |
|
|
70.9 |
% |
|
75.1 |
% |
|
Core EBITDA (4) |
|
732 |
|
|
|
468 |
|
|
56.5 |
% |
|
59.3 |
% |
|
Core EPS (3) |
$ |
1.39 |
|
|
$ |
0.81 |
|
|
72.1 |
% |
|
76.4 |
% |
|
|
|
|
|
|
|
|
|
|||||||
Cash Flow Results |
|
|
|
|
|
|
|
|||||||
Cash flow used in operations |
$ |
(394 |
) |
|
$ |
(193 |
) |
|
|
|
|
|||
Less: Capital expenditures |
|
42 |
|
|
|
30 |
|
|
|
|
|
|||
Free cash flow (5) |
$ |
(436 |
) |
|
$ |
(223 |
) |
|
|
|
|
First-quarter 2022 operating cash flows include the negative impact of approximately $133 million associated with the timing of certain cash tax payments and refunds.
Advisory Services Segment
The following table presents highlights of the Advisory Services segment performance (dollars in millions, totals may not add due to rounding):
|
|
|
|
|
% Change |
|||||||||
|
Q1 2022 |
|
Q1 2021 |
|
USD |
|
LC |
|||||||
Revenue |
$ |
2,248 |
|
|
$ |
1,708 |
|
|
31.6 |
% |
|
33.9 |
% |
|
Net revenue |
|
2,231 |
|
|
|
1,689 |
|
|
32.0 |
% |
|
34.4 |
% |
|
Segment operating profit (6) |
|
466 |
|
|
|
333 |
|
|
40.0 |
% |
|
42.3 |
% |
|
Segment operating profit on revenue margin (7) |
|
20.7 |
% |
|
|
19.5 |
% |
|
1.2 pts |
|
1.2 pts |
|||
Segment operating profit on net revenue margin (7) |
|
20.9 |
% |
|
|
19.7 |
% |
|
1.2 pts |
|
1.2 pts |
Note: all percent changes cited are vs. first-quarter 2021, except where noted.
Property Sales: Global revenue rose 58% (62% local currency) and was 44% above the pre-pandemic first-quarter peak (Q1 2020).
Property Leasing: Global revenue rose 49% (50% local currency) and was 20% above the pre-pandemic first-quarter peak (Q1 2019).
Commercial mortgage origination: Revenue rose 4% (same local currency).
Other Advisory Business Lines:
Global Workplace Solutions (GWS) Segment
The following table presents highlights of the GWS segment performance (dollars in millions, totals may not add due to rounding):
|
|
|
|
|
% Change |
|||||||||
|
Q1 2022 |
|
Q1 2021 |
|
USD |
|
LC |
|||||||
Revenue |
$ |
4,806 |
|
|
$ |
4,026 |
|
|
19.4 |
% |
|
21.2 |
% |
|
Net revenue |
|
1,866 |
|
|
|
1,465 |
|
|
27.4 |
% |
|
29.4 |
% |
|
Segment operating profit |
|
203 |
|
|
|
152 |
|
|
33.2 |
% |
|
36.0 |
% |
|
Segment operating profit on revenue margin |
|
4.2 |
% |
|
|
3.8 |
% |
|
0.4 pts |
|
0.5 pts |
|||
Segment operating profit on net revenue margin |
|
10.9 |
% |
|
|
10.4 |
% |
|
0.5 pts |
|
0.5 pts |
Note: all percent changes cited are vs. first-quarter 2021, except where noted.
Excluding $312.1 million of revenue from Turner & Townsend (60% interest acquired on November 1, 2021), GWS revenue rose 12% (13% local currency). Net revenue increased 9% (10% local currency), excluding $276.9 million from Turner & Townsend.
Real Estate Investments (REI) Segment
The following table presents highlights of the REI segment performance (dollars in millions):
|
|
|
|
|
% Change |
|||||||
|
Q1 2022 |
|
Q1 2021 |
|
USD |
|
LC |
|||||
Revenue |
$ |
284 |
|
$ |
211 |
|
34.4 |
% |
|
37.6 |
% |
|
Segment operating profit |
|
167 |
|
|
63 |
|
164.9 |
% |
|
167.2 |
% |
Note: all percent changes cited are vs. first-quarter 2021, except where noted.
Real Estate Development: Operating profit (8) surged by nearly $97 million to almost $107 million, driven by the strong pace of co-investment asset monetization.
Investment Management: Revenue rose 14% (17% local currency) to nearly $151 million, driven by higher asset valuations.
Corporate and Other Segment
The Corporate and Other segment produced a loss of $239.7 million.
Capital Allocation Overview
Leverage and Financing Overview
|
As of |
||
|
March 31, 2022 |
||
Total debt |
$ |
1,767 |
|
Less: Cash (11) |
|
1,518 |
|
Net debt (10) |
$ |
249 |
|
|
|
||
Divided by: Trailing twelve month consolidated adjusted EBITDA (12) |
$ |
3,176 |
|
|
|
||
Net leverage ratio |
0.08x |
Conference Call Details
The company’s first quarter earnings webcast and conference call will be held today, Thursday, May 5, 2022 at 8:30 a.m. Eastern Time. Investors are encouraged to access the webcast via this link or they can click this link beginning at 8:15 a.m. Eastern Time for automated access to the conference call.
Alternatively, investors may dial into the conference call using these operator-assisted phone numbers: 877.407.8037 (U.S.) or 201.689.8037 (International). A replay of the call will be available starting at 1:00 p.m. Eastern Time on May 5, 2022. The replay is accessible by dialing 877.660.6853 (U.S.) or 201.612.7415 (International) and using the access code: 13728580#. A transcript of the call will be available on the company's Investor Relations website at https://ir.cbre.com.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com. We routinely post important information on our website, including corporate and investor presentations and financial information. We intend to use our website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included in the Investor Relations section of our website at https://ir.cbre.com. Accordingly, investors should monitor such portion of our website, in addition to following our press releases, Securities and Exchange Commission filings and public conference calls and webcasts.
Safe Harbor and Footnotes
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the company’s future growth momentum, operations, business outlook, capital deployment and financial performance, including consolidated earnings. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the company’s actual results and performance in future periods to be materially different from any future results or performance suggested in forward-looking statements in this press release. Any forward-looking statements speak only as of the date of this press release and, except to the extent required by applicable securities laws, the company expressly disclaims any obligation to update or revise any of them to reflect actual results, any changes in expectations or any change in events. If the company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements. Factors that could cause results to differ materially include, but are not limited to: disruptions in general economic, political and regulatory conditions and significant public health events or the outbreak of war, particularly in geographies or industry sectors where our business may be concentrated; volatility or adverse developments in the securities, capital or credit markets, interest rate increases and conditions affecting the value of real estate assets, inside and outside the United States; poor performance of real estate investments or other conditions that negatively impact clients’ willingness to make real estate or long-term contractual commitments and the cost and availability of capital for investment in real estate; foreign currency fluctuations and changes in currency restrictions, trade sanctions and import/export and transfer pricing rules; disruptions to business, market and operational conditions related to the Covid-19 pandemic and the impact of government rules and regulations intended to mitigate the effects of this pandemic, including, without limitation, rules and regulations that impact us as a loan originator and servicer for U.S. Government Sponsored Enterprises (GSEs); our ability to compete globally, or in specific geographic markets or business segments that are material to us; our ability to identify, acquire and integrate accretive businesses; costs and potential future capital requirements relating to businesses we may acquire; integration challenges arising out of companies we may acquire; increases in unemployment and general slowdowns in commercial activity; trends in pricing and risk assumption for commercial real estate services; the effect of significant changes in capitalization rates across different property types; a reduction by companies in their reliance on outsourcing for their commercial real estate needs, which would affect our revenues and operating performance; client actions to restrain project spending and reduce outsourced staffing levels; our ability to further diversify our revenue model to offset cyclical economic trends in the commercial real estate industry; our ability to attract new user and investor clients; our ability to retain major clients and renew related contracts; our ability to leverage our global services platform to maximize and sustain long-term cash flow; our ability to continue investing in our platform and client service offerings; our ability to maintain expense discipline; the emergence of disruptive business models and technologies; negative publicity or harm to our brand and reputation; the failure by third parties to comply with service level agreements or regulatory or legal requirements; the ability of our investment management business to maintain and grow assets under management and achieve desired investment returns for our investors, and any potential related litigation, liabilities or reputational harm possible if we fail to do so; our ability to manage fluctuations in net earnings and cash flow, which could result from poor performance in our investment programs, including our participation as a principal in real estate investments; the ability of our indirect subsidiary, CBRE Capital Markets, Inc., to periodically amend, or replace, on satisfactory terms, the agreements for its warehouse lines of credit; declines in lending activity of U.S. GSEs, regulatory oversight of such activity and our mortgage servicing revenue from the commercial real estate mortgage market; changes in U.S. and international law and regulatory environments (including relating to anti-corruption, anti-money laundering, trade sanctions, tariffs, currency controls and other trade control laws), particularly in Asia, Africa, Russia, Eastern Europe and the Middle East, due to certain conflicts and the level of political instability in those regions; litigation and its financial and reputational risks to us; our exposure to liabilities in connection with real estate advisory and property management activities and our ability to procure sufficient insurance coverage on acceptable terms; our ability to retain, attract and incentivize key personnel; our ability to manage organizational challenges associated with our size; liabilities under guarantees, or for construction defects, that we incur in our development services business; variations in historically customary seasonal patterns that cause our business not to perform as expected; our leverage under our debt instruments as well as the limited restrictions therein on our ability to incur additional debt, and the potential increased borrowing costs to us from a credit-ratings downgrade; our and our employees’ ability to execute on, and adapt to, information technology strategies and trends; cybersecurity threats or other threats to our information technology networks, including the potential misappropriation of assets or sensitive information, corruption of data or operational disruption; our ability to comply with laws and regulations related to our global operations, including real estate licensure, tax, labor and employment laws and regulations, as well as data privacy and protection regulations, and the anti-corruption laws and trade sanctions of the U.S. and other countries; changes in applicable tax or accounting requirements; any inability for us to implement and maintain effective internal controls over financial reporting; the effect of implementation of new accounting rules and standards or the impairment of our goodwill and intangible assets; and the performance of our equity investments in companies that we do not control.
Additional information concerning factors that may influence the company’s financial information is discussed under “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Quantitative and Qualitative Disclosures About Market Risk” and “Cautionary Note on Forward-Looking Statements” in our Annual Report on Form 10-K for the year ended December 31, 2021, our latest quarterly report on Form 10-Q, as well as in the company’s press releases and other periodic filings with the Securities and Exchange Commission (SEC). Such filings are available publicly and may be obtained on the company’s website at www.cbre.com or upon written request from CBRE’s Investor Relations Department at investorrelations@cbre.com.
The terms “net revenue,” “core adjusted net income,” “core EPS,” “consolidated adjusted EBITDA,” “business line operating profit,” “segment operating profit on revenue margin,” “segment operating profit on net revenue margin,” “core EBITDA,” and “free cash flow,” all of which CBRE uses in this press release, are non-GAAP financial measures under SEC guidelines, and you should refer to the footnotes below as well as the “Non-GAAP Financial Measures” section in this press release for a further explanation of these measures. We have also included in that section reconciliations of these measures in specific periods to their most directly comparable financial measure calculated and presented in accordance with GAAP for those periods.
Totals may not sum in tables in millions included in this release due to rounding.
(1) |
Local currency percentage change is calculated by comparing current-period results at prior-period exchange rates versus prior-period results. |
|
(2) |
Net revenue is gross revenue less costs largely associated with subcontracted vendor work performed for clients. These costs are reimbursable by clients and generally have no margin. |
|
(3) |
Core adjusted net income and core earnings per diluted share (or core EPS) exclude the effect of select items from GAAP net income and GAAP earnings per diluted share as well as adjust the provision for income taxes and impact on non-controlling interest for such charges. Adjustments during the periods presented included non-cash depreciation and amortization expense related to certain assets attributable to acquisitions, certain carried interest incentive compensation expense (reversal) to align with the timing of associated revenue, the impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in the period, costs incurred related to legal entity restructuring, integration and other costs related to acquisitions, and asset impairments. It also removes the fair value changes and related tax impact of certain strategic non-core non-controlling equity investments that are not directly related to our business segments (including venture capital “VC” related investments). Note: Core adjusted EPS has been renamed core EPS for simplicity. |
|
(4) |
Core EBITDA has been added to highlight operational performance excluding the impact of non-core investments. Core EBITDA removes from consolidated adjusted EBITDA the fair value changes, on a pre-tax basis, of certain strategic non-core non-controlling equity investments that are not directly related to our business segments (including venture capital “VC” related investments). |
|
(5) |
Free cash flow is calculated as cash flow from operations, less capital expenditures (reflected in the investing section of the consolidated statement of cash flows). |
|
(6) |
Segment operating profit is the measure reported to the chief operating decision maker (CODM) for purposes of making decisions about allocating resources to each segment and assessing performance of each segment. Segment operating profit represents earnings, inclusive of non-controlling interest, before net interest expense, write-off of financing costs on extinguished debt, income taxes, depreciation and amortization and asset impairments, as well as adjustments related to the following: certain carried interest incentive compensation expense (reversal) to align with the timing of associated revenue, fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in the period, costs incurred related to legal entity restructuring, and integration and other costs related to acquisitions. The above definition was changed in the fourth quarter of 2021 to include non-controlling interest given the acquisition of Turner & Townsend. Prior period results have been recast to conform to this definition. |
|
(7) |
Segment operating profit on revenue and net revenue margins represent segment operating profit divided by revenue and net revenue, respectively. |
|
(8) |
Represents line of business profitability/losses, as adjusted. |
|
(9) |
For the three months ended March 31, 2022, the company incurred capital expenditures of $42.1 million (reflected in the investing section of the condensed consolidated statement of cash flows) and received tenant concessions from landlords of $2.1 million (reflected in the operating section of the condensed consolidated statement of cash flows). |
|
(10) |
Net debt is calculated as cash available for company use less total debt (excluding non-recourse debt). |
|
(11) |
Cash represents cash and cash equivalents (excluding restricted cash) and excludes $139.3 million of cash in consolidated funds and other entities not available for company use at March 31, 2022. |
|
(12) |
Consolidated adjusted EBITDA represents earnings, inclusive of non-controlling interest, before net interest expense, write-off of financing costs on extinguished debt, income taxes, depreciation and amortization, asset impairments, adjustments related to certain carried interest incentive compensation expense (reversal) to align with the timing of associated revenue, fair value adjustments to real estate assets acquired in the acquisition of Telford Homes plc in 2019 (the Telford acquisition) (purchase accounting) that were sold in the period, costs incurred related to legal entity restructuring, and integration and other costs related to acquisitions. The above definition was changed in the fourth quarter of 2021 to include non-controlling interest given the acquisition of Turner & Townsend. Prior period results have been recast to conform to this definition. |
CBRE GROUP, INC. |
|||||||
OPERATING RESULTS |
|||||||
FOR THREE MONTHS ENDED MARCH 31, 2022 AND 2021 |
|||||||
(in thousands, except share and per share data) |
|||||||
(Unaudited) |
|||||||
|
|
|
|||||
|
|
Three Months Ended March 31, |
|||||
|
|
2022 |
|
2021 |
|||
Revenue: |
|
|
|
||||
Net revenue |
$ |
4,376,029 |
|
|
$ |
3,358,983 |
|
Pass through costs also recognized as revenue |
|
2,956,904 |
|
|
|
2,579,896 |
|
Total revenue |
|
7,332,933 |
|
|
|
5,938,879 |
|
|
|
|
|
||||
Costs and expenses: |
|
|
|
||||
Cost of revenue |
|
5,752,194 |
|
|
|
4,719,546 |
|
Operating, administrative and other |
|
1,065,996 |
|
|
|
828,327 |
|
Depreciation and amortization |
|
149,032 |
|
|
|
122,078 |
|
Asset impairments |
|
10,351 |
|
|
|
— |
|
Total costs and expenses |
|
6,977,573 |
|
|
|
5,669,951 |
|
|
|
|
|
||||
Gain on disposition of real estate |
|
21,592 |
|
|
|
156 |
|
|
|
|
|
||||
Operating income |
|
376,952 |
|
|
|
269,084 |
|
|
|
|
|
||||
Equity income from unconsolidated subsidiaries |
|
42,871 |
|
|
|
83,594 |
|
Other (loss) income |
|
(14,464 |
) |
|
|
2,732 |
|
Interest expense, net of interest income |
|
12,826 |
|
|
|
10,106 |
|
Income before (benefit from) provision for income taxes |
|
392,533 |
|
|
|
345,304 |
|
(Benefit from) provision for income taxes |
|
(3,738 |
) |
|
|
76,327 |
|
Net income |
|
396,271 |
|
|
|
268,977 |
|
Less: Net income attributable to non-controlling interests |
|
3,974 |
|
|
|
2,775 |
|
Net income attributable to CBRE Group, Inc. |
$ |
392,297 |
|
|
$ |
266,202 |
|
|
|
|
|
||||
Basic income per share: |
|
|
|
||||
Net income per share attributable to CBRE Group, Inc. |
$ |
1.18 |
|
|
$ |
0.79 |
|
Weighted average shares outstanding for basic income per share |
|
331,925,104 |
|
|
|
335,860,494 |
|
|
|
|
|
||||
Diluted income per share: |
|
|
|
||||
Net income per share attributable to CBRE Group, Inc. |
$ |
1.16 |
|
|
$ |
0.78 |
|
Weighted average shares outstanding for diluted income per share |
|
337,140,325 |
|
|
|
339,580,504 |
|
|
|
|
|
||||
Consolidated adjusted EBITDA (1) |
$ |
595,699 |
|
|
$ |
493,919 |
_______________ |
||
(1) |
In conjunction with the acquisition of 60% interest in Turner & Townsend in the fourth quarter of 2021, we modified our definition of Consolidated adjusted EBITDA and Segment Operating Profit (SOP) to be inclusive of net income attributable to non-controlling interests. Prior period results have been recast to conform to this definition. |
CBRE GROUP, INC. |
||||||||||||||||||||||||||||||||
SEGMENT RESULTS |
||||||||||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2022 |
||||||||||||||||||||||||||||||||
(in thousands, totals may not add due to rounding) |
||||||||||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||
|
Three Months Ended March 31, 2022 |
|||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
Advisory
|
|
Global
Solutions |
|
Real Estate
|
|
Subtotal |
|
Corporate (1) |
|
Other |
|
Total Corporate,
|
|
Consolidated |
|||||||||||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net revenue |
$ |
2,230,670 |
|
|
$ |
1,866,490 |
|
$ |
283,757 |
|
|
$ |
4,380,917 |
|
|
$ |
(4,888 |
) |
|
$ |
— |
|
|
$ |
(4,888 |
) |
|
$ |
4,376,029 |
|
||
Pass through costs also recognized as revenue |
|
17,778 |
|
|
|
2,939,126 |
|
|
— |
|
|
|
2,956,904 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,956,904 |
|
||
Total revenue |
|
2,248,448 |
|
|
|
4,805,616 |
|
|
283,757 |
|
|
|
7,337,821 |
|
|
|
(4,888 |
) |
|
|
— |
|
|
|
(4,888 |
) |
|
|
7,332,933 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Cost of revenue |
|
1,312,291 |
|
|
|
4,373,967 |
|
|
70,053 |
|
|
|
5,756,311 |
|
|
|
(4,114 |
) |
|
|
(3 |
) |
|
|
(4,117 |
) |
|
|
5,752,194 |
|
||
Operating, administrative and other |
|
480,255 |
|
|
|
239,386 |
|
|
246,752 |
|
|
|
966,393 |
|
|
|
97,363 |
|
|
|
2,240 |
|
|
|
99,603 |
|
|
|
1,065,996 |
|
||
Depreciation and amortization |
|
74,887 |
|
|
|
61,969 |
|
|
3,856 |
|
|
|
140,712 |
|
|
|
8,320 |
|
|
|
— |
|
|
|
8,320 |
|
|
|
149,032 |
|
||
Asset impairments |
|
10,351 |
|
|
|
— |
|
|
— |
|
|
|
10,351 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,351 |
|
||
Total costs and expenses |
|
1,877,784 |
|
|
|
4,675,322 |
|
|
320,661 |
|
|
|
6,873,767 |
|
|
|
101,569 |
|
|
|
2,237 |
|
|
|
103,806 |
|
|
|
6,977,573 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Gain on disposition of real estate |
|
— |
|
|
|
— |
|
|
21,592 |
|
|
|
21,592 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
21,592 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating income (loss) |
|
370,664 |
|
|
|
130,294 |
|
|
(15,312 |
) |
|
|
485,646 |
|
|
|
(106,457 |
) |
|
|
(2,237 |
) |
|
|
(108,694 |
) |
|
|
376,952 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Equity income (loss) from unconsolidated subsidiaries |
|
9,756 |
|
|
|
863 |
|
|
157,440 |
|
|
|
168,059 |
|
|
|
— |
|
|
|
(125,188 |
) |
|
|
(125,188 |
) |
|
|
42,871 |
|
||
Other (loss) income |
|
(4 |
) |
|
|
1,489 |
|
|
(92 |
) |
|
|
1,393 |
|
|
|
(6,918 |
) |
|
|
(8,939 |
) |
|
|
(15,857 |
) |
|
|
(14,464 |
) |
||
Add-back: Depreciation and amortization |
|
74,887 |
|
|
|
61,969 |
|
|
3,856 |
|
|
|
140,712 |
|
|
|
8,320 |
|
|
|
— |
|
|
|
8,320 |
|
|
|
149,032 |
|
||
Add-back: Asset impairments |
|
10,351 |
|
|
|
— |
|
|
— |
|
|
|
10,351 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,351 |
|
||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Integration and other costs related to acquisitions |
|
— |
|
|
|
8,121 |
|
|
— |
|
|
|
8,121 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,121 |
|
||
Carried interest incentive compensation expense to align with the timing of associated revenue |
|
— |
|
|
|
— |
|
|
22,856 |
|
|
|
22,856 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
22,856 |
|
||
Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period |
|
— |
|
|
|
— |
|
|
(1,696 |
) |
|
|
(1,696 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,696 |
) |
||
Costs incurred related to legal entity restructuring |
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
1,676 |
|
|
|
— |
|
|
|
1,676 |
|
|
|
1,676 |
|
||
Segment operating profit (loss) |
$ |
465,654 |
|
|
$ |
202,736 |
|
$ |
167,052 |
|
|
$ |
835,442 |
|
|
$ |
(103,379 |
) |
|
$ |
(136,364 |
) |
|
$ |
(239,743 |
) |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Segment operating profit attributable to non-controlling interests |
$ |
970 |
|
|
$ |
16,854 |
|
$ |
674 |
|
|
$ |
18,498 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
||||
Segment operating profit (loss) attributable to CBRE Group, Inc. |
$ |
464,684 |
|
|
$ |
185,882 |
|
$ |
166,378 |
|
|
$ |
816,944 |
|
|
$ |
(103,379 |
) |
|
$ |
(136,364 |
) |
|
$ |
(239,743 |
) |
|
|
||||
Consolidated adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
595,699 |
|
_______________ |
||
(1) |
Includes elimination of inter-segment revenue. |
CBRE GROUP, INC. |
||||||||||||||||||||||||||||
SEGMENT RESULTS—(CONTINUED) |
||||||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2021 |
||||||||||||||||||||||||||||
(in thousands, totals may not add due to rounding) |
||||||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||
|
Three Months Ended March 31, 2021 |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Advisory
|
Global
Solutions |
Real Estate
|
Subtotal |
Corporate (1) |
Other |
Total Corporate,
|
Consolidated |
||||||||||||||||||||
Revenue: |
|
|
|
|
|
|
|
|
||||||||||||||||||||
Net revenue |
$ |
1,689,393 |
$ |
1,464,606 |
|
$ |
211,129 |
|
$ |
3,365,128 |
$ |
(6,145 |
) |
$ |
— |
$ |
(6,145 |
) |
$ |
3,358,983 |
||||||||
Pass through costs also recognized as revenue |
|
18,619 |
|
2,561,277 |
|
|
— |
|
|
2,579,896 |
|
— |
|
|
— |
|
— |
|
|
2,579,896 |
||||||||
Total revenue |
|
1,708,012 |
|
4,025,883 |
|
|
211,129 |
|
|
5,945,024 |
|
(6,145 |
) |
|
— |
|
(6,145 |
) |
|
5,938,879 |
||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Costs and expenses: |
|
|
|
|
|
|
|
|
||||||||||||||||||||
Cost of revenue |
|
987,577 |
|
3,697,773 |
|
|
40,990 |
|
|
4,726,340 |
|
(6,794 |
) |
|
— |
|
(6,794 |
) |
|
4,719,546 |
||||||||
Operating, administrative and other |
|
388,607 |
|
176,011 |
|
|
180,980 |
|
|
745,598 |
|
82,729 |
|
|
— |
|
82,729 |
|
|
828,327 |
||||||||
Depreciation and amortization |
|
69,754 |
|
34,459 |
|
|
10,430 |
|
|
114,643 |
|
7,435 |
|
|
— |
|
7,435 |
|
|
122,078 |
||||||||
Total costs and expenses |
|
1,445,938 |
|
3,908,243 |
|
|
232,400 |
|
|
5,586,581 |
|
83,370 |
|
|
— |
|
83,370 |
|
|
5,669,951 |
||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Gain on disposition of real estate |
|
— |
|
— |
|
|
156 |
|
|
156 |
|
— |
|
|
— |
|
— |
|
|
156 |
||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Operating income (loss) |
|
262,074 |
|
117,640 |
|
|
(21,115 |
) |
|
358,599 |
|
(89,515 |
) |
|
— |
|
(89,515 |
) |
|
269,084 |
||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Equity income (loss) from unconsolidated subsidiaries |
|
750 |
|
(182 |
) |
|
56,894 |
|
|
57,462 |
|
— |
|
|
26,132 |
|
26,132 |
|
|
83,594 |
||||||||
Other income |
|
1 |
|
266 |
|
|
427 |
|
|
694 |
|
2,038 |
|
|
— |
|
2,038 |
|
|
2,732 |
||||||||
Add-back: Depreciation and amortization |
|
69,754 |
|
34,459 |
|
|
10,430 |
|
|
114,643 |
|
7,435 |
|
|
— |
|
7,435 |
|
|
122,078 |
||||||||
Adjustments: |
|
|
|
|
|
|
|
|
||||||||||||||||||||
Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period |
|
— |
|
— |
|
|
1,099 |
|
|
1,099 |
|
— |
|
|
— |
|
— |
|
|
1,099 |
||||||||
Carried interest incentive compensation expense to align with the timing of associated revenue |
|
— |
|
— |
|
|
15,332 |
|
|
15,332 |
|
— |
|
|
— |
|
— |
|
|
15,332 |
||||||||
Segment operating profit (loss) (2) |
$ |
332,579 |
$ |
152,183 |
|
$ |
63,067 |
|
$ |
547,829 |
$ |
(80,042 |
) |
$ |
26,132 |
$ |
(53,910 |
) |
|
|||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Segment operating profit attributable to non-controlling interests (2) |
$ |
279 |
$ |
6 |
|
$ |
2,736 |
|
$ |
3,021 |
$ |
— |
|
$ |
— |
$ |
— |
|
|
|||||||||
Segment operating profit (loss) attributable to CBRE Group, Inc. |
$ |
332,300 |
$ |
152,177 |
|
$ |
60,331 |
|
$ |
544,808 |
$ |
(80,042 |
) |
$ |
26,132 |
$ |
(53,910 |
) |
|
|||||||||
Consolidated adjusted EBITDA (2) |
|
|
|
|
|
|
|
$ |
493,919 |
_______________ |
||
(1) |
Includes elimination of inter-segment revenue. |
|
(2) |
In conjunction with the acquisition of 60% interest in Turner & Townsend in the fourth quarter of 2021, we modified our definition of adjusted EBITDA and SOP to be inclusive of net income attributable to non-controlling interests and have recast prior periods to conform to this definition. |
CBRE GROUP, INC. |
||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
(in thousands) |
||||||
(Unaudited) |
||||||
|
|
|
|
|||
|
March 31, 2022 |
|
December 31, 2021 |
|||
Assets: |
|
|
|
|||
Cash and cash equivalents (1) |
$ |
1,657,336 |
|
$ |
2,430,951 |
|
Restricted cash |
|
135,293 |
|
|
108,830 |
|
Receivables, net |
|
5,073,224 |
|
|
5,150,473 |
|
Warehouse receivables (2) |
|
1,194,800 |
|
|
1,303,717 |
|
Contract assets |
|
486,388 |
|
|
474,375 |
|
Income taxes receivable |
|
81,665 |
|
|
77,254 |
|
Property and equipment, net |
|
792,735 |
|
|
816,092 |
|
Operating lease assets |
|
1,030,391 |
|
|
1,046,377 |
|
Goodwill and other intangibles, net |
|
7,315,630 |
|
|
7,404,602 |
|
Investments in unconsolidated subsidiaries |
|
1,124,339 |
|
|
1,196,088 |
|
Other assets, net |
|
2,251,351 |
|
|
2,064,732 |
|
|
|
|
|
|||
Total assets |
$ |
21,143,152 |
|
$ |
22,073,491 |
|
|
|
|
|
|||
Liabilities: |
|
|
|
|||
Current liabilities, excluding debt and operating lease liabilities |
$ |
6,156,163 |
|
$ |
6,876,327 |
|
Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) (2) |
|
1,172,125 |
|
|
1,277,451 |
|
Revolving credit facility |
|
210,000 |
|
|
— |
|
Senior term loans, net |
|
442,093 |
|
|
454,539 |
|
4.875% senior notes, net |
|
595,705 |
|
|
595,463 |
|
2.500% senior notes, net |
|
488,414 |
|
|
488,121 |
|
Other debt |
|
30,826 |
|
|
32,668 |
|
Operating lease liabilities |
|
1,325,542 |
|
|
1,348,985 |
|
Other long-term liabilities |
|
1,439,459 |
|
|
1,640,820 |
|
|
|
|
|
|||
Total liabilities |
|
11,860,327 |
|
|
12,714,374 |
|
|
|
|
|
|||
Equity: |
|
|
|
|||
CBRE Group, Inc. stockholders' equity |
|
8,469,971 |
|
|
8,528,193 |
|
Non-controlling interests |
|
812,854 |
|
|
830,924 |
|
|
|
|
|
|||
Total equity |
|
9,282,825 |
|
|
9,359,117 |
|
|
|
|
|
|||
Total liabilities and equity |
$ |
21,143,152 |
|
$ |
22,073,491 |
_______________ |
||
(1) |
Includes $139.3 million and $125.2 million of cash in consolidated funds and other entities not available for company use as of March 31, 2022 and December 31, 2021, respectively. |
|
(2) |
Represents loan receivables, the majority of which are offset by borrowings under related warehouse line of credit facilities. |
CBRE GROUP, INC. |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(in thousands) |
||||||||
(Unaudited) |
||||||||
|
|
|||||||
|
Three Months Ended March 31, |
|||||||
|
2022 |
|
2021 |
|||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|||||
Net income |
$ |
396,271 |
|
|
$ |
268,977 |
|
|
Adjustments to reconcile net income to net cash used in operating activities: |
|
|
|
|||||
Depreciation and amortization |
|
149,032 |
|
|
|
122,078 |
|
|
Amortization of financing costs |
|
1,663 |
|
|
|
1,609 |
|
|
Gains related to mortgage servicing rights, premiums on loan sales and sales of other assets |
|
(28,422 |
) |
|
|
(72,045 |
) |
|
Asset impairments |
|
10,351 |
|
|
|
— |
|
|
Net realized and unrealized losses (gains), primarily from investments |
|
16,690 |
|
|
|
(2,732 |
) |
|
Provision for doubtful accounts |
|
3,303 |
|
|
|
731 |
|
|
Net compensation expense for equity awards |
|
36,863 |
|
|
|
35,786 |
|
|
Equity income from unconsolidated subsidiaries |
|
(42,871 |
) |
|
|
(83,594 |
) |
|
Distribution of earnings from unconsolidated subsidiaries |
|
146,743 |
|
|
|
32,986 |
|
|
Proceeds from sale of mortgage loans |
|
3,336,084 |
|
|
|
4,643,685 |
|
|
Origination of mortgage loans |
|
(3,221,312 |
) |
|
|
(3,909,261 |
) |
|
Decrease in warehouse lines of credit |
|
(105,326 |
) |
|
|
(708,491 |
) |
|
Tenant concessions received |
|
2,114 |
|
|
|
1,578 |
|
|
Purchase of equity securities |
|
(8,902 |
) |
|
|
(2,398 |
) |
|
Proceeds from sale of equity securities |
|
20,750 |
|
|
|
3,017 |
|
|
Increase in real estate under development |
|
(41,358 |
) |
|
|
(15,901 |
) |
|
(Increase) decrease in receivables, prepaid expenses and other assets (including contract and lease assets) (1) |
|
(156,061 |
) |
|
|
161,221 |
|
|
Decrease in accounts payable and accrued expenses and other liabilities (including contract and lease liabilities) |
|
(108,355 |
) |
|
|
(245,522 |
) |
|
Decrease in compensation and employee benefits payable and accrued bonus and profit sharing |
|
(725,216 |
) |
|
|
(469,213 |
) |
|
Decrease in net income taxes receivable/payable |
|
17,722 |
|
|
|
41,660 |
|
|
Other operating activities, net |
|
(93,270 |
) |
|
|
2,381 |
|
|
Net cash used in operating activities |
|
(393,507 |
) |
|
|
(193,448 |
) |
|
|
|
|
|
|||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|||||
Capital expenditures |
|
(42,056 |
) |
|
|
(29,597 |
) |
|
Acquisition of businesses, including net assets acquired and goodwill, net of cash acquired |
|
(16,792 |
) |
|
|
(2,726 |
) |
|
Contributions to unconsolidated subsidiaries |
|
(44,387 |
) |
|
|
(168,392 |
) |
|
Distributions from unconsolidated subsidiaries |
|
12,101 |
|
|
|
6,795 |
|
|
Other investing activities, net |
|
(4,487 |
) |
|
|
16 |
|
|
Net cash used in investing activities |
|
(95,621 |
) |
|
|
(193,904 |
) |
|
|
|
|
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|||||
Proceeds from revolving credit facility |
|
210,000 |
|
|
|
— |
|
|
Proceeds from notes payable on real estate |
|
19,368 |
|
|
|
23,737 |
|
|
Repayment of notes payable on real estate |
|
(13,954 |
) |
|
|
— |
|
|
Proceeds from issuance of 2.500% senior notes |
|
— |
|
|
|
492,255 |
|
|
Repurchase of common stock |
|
(367,863 |
) |
|
|
(61,108 |
) |
|
Acquisition of businesses (cash paid for acquisitions more than three months after purchase date) |
|
(13,556 |
) |
|
|
(512 |
) |
|
Units repurchased for payment of taxes on equity awards |
|
(31,395 |
) |
|
|
(34,883 |
) |
|
Non-controlling interest contributions |
|
210 |
|
|
|
72 |
|
|
Non-controlling interest distributions |
|
(213 |
) |
|
|
(2,652 |
) |
|
Other financing activities, net |
|
(11,606 |
) |
|
|
(14,943 |
) |
|
Net cash (used in) provided by financing activities |
|
(209,009 |
) |
|
|
401,966 |
|
|
Effect of currency exchange rate changes on cash and cash equivalents and restricted cash |
|
(49,015 |
) |
|
|
(52,154 |
) |
|
|
|
|
|
|||||
NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH |
|
(747,152 |
) |
|
|
(37,540 |
) |
|
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT BEGINNING OF PERIOD |
|
2,539,781 |
|
|
|
2,039,247 |
|
|
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT END OF PERIOD |
$ |
1,792,629 |
|
|
$ |
2,001,707 |
|
|
|
|
|
|
|||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: |
|
|
|
|||||
Cash paid during the period for: |
|
|
|
|||||
Interest |
$ |
12,826 |
|
|
$ |
15,080 |
|
|
Income tax payments, net |
$ |
88,649 |
|
|
$ |
38,508 |
|
_______________ |
||
(1) |
First-quarter 2022 operating cash flows include the negative impact of approximately $133 million associated with the timing of certain cash tax payments and refunds. |
Non-GAAP Financial Measures
The following measures are considered “non-GAAP financial measures” under SEC guidelines:
(i) |
Net revenue |
|
(ii) |
Consolidated adjusted EBITDA |
|
(iii) |
Business line operating profit/loss |
|
(iv) |
Segment operating profit on revenue and net revenue margins |
|
(v) |
Free cash flow |
|
(vi) |
Net debt |
|
(vii) |
Core adjusted net income attributable to CBRE Group, Inc. stockholders (which we also refer to as “core adjusted net income”) |
|
(viii) |
Core EPS |
|
(ix) |
Core EBITDA |
These measures are not recognized measurements under United States generally accepted accounting principles (GAAP). When analyzing our operating performance, investors should use these measures in addition to, and not as an alternative for, their most directly comparable financial measure calculated and presented in accordance with GAAP. Because not all companies use identical calculations, our presentation of these measures may not be comparable to similarly titled measures of other companies.
Our management generally uses these non-GAAP financial measures to evaluate operating performance and for other discretionary purposes. The company believes these measures provide a more complete understanding of ongoing operations, enhance comparability of current results to prior periods and may be useful for investors to analyze our financial performance because they eliminate the impact of selected charges that may obscure trends in the underlying performance of our business. The company further uses certain of these measures, and believes that they are useful to investors, for purposes described below.
With respect to net revenue, net revenue is gross revenue less costs largely associated with subcontracted vendor work performed for clients. We believe that investors may find this measure useful to analyze the company’s overall financial performance because it excludes costs reimbursable by clients that generally have no margin, and as such provides greater visibility into the underlying performance of our business. Prior to 2021, the company utilized fee revenue to analyze the overall financial performance. Fee revenue excluded additional reimbursed costs, primarily related to employees dedicated to clients, some of which included minimal margin.
With respect to consolidated adjusted EBITDA, business line operating profit, and segment operating profit on revenue and net revenue margins, the company believes that investors may find these measures useful in evaluating our operating performance compared to that of other companies in our industry because their calculations generally eliminate the accounting effects of acquisitions, which would include impairment charges of goodwill and intangibles created from acquisitions—and in the case of consolidated adjusted EBITDA, business line operating profit and segment operating profit on revenue and net revenue margins—the effects of financings and income tax and the accounting effects of capital spending. All of these measures may vary for different companies for reasons unrelated to overall operating performance. In the case of consolidated adjusted EBITDA, this measure is not intended to be a measure of free cash flow for our management’s discretionary use because it does not consider cash requirements such as tax and debt service payments. The consolidated adjusted EBITDA measure calculated herein may also differ from the amounts calculated under similarly titled definitions in our credit facilities and debt instruments, which amounts are further adjusted to reflect certain other cash and non-cash charges and are used by us to determine compliance with financial covenants therein and our ability to engage in certain activities, such as incurring additional debt. The company also uses consolidated adjusted EBITDA, segment operating profit and core EPS as significant components when measuring our operating performance under our employee incentive compensation programs.
With respect to free cash flow, the company believes that investors may find this measure useful to analyze the cash flow generated from operations after accounting for cash outflows to support operations and capital expenditures. With respect to net cash, the company believes that investors use this measure when calculating the company’s net leverage ratio.
With respect to core EBITDA, core EPS and core adjusted net income, the company believes that investors may find these measures useful to analyze the underlying performance of operations without the impact of strategic non-core equity investments (Altus Power Inc. and VC investments) that are not directly related to our business segments. These can be volatile and are often non-cash in nature.
Core adjusted net income attributable to CBRE Group, Inc. stockholders (or core adjusted net income), and core EPS, are calculated as follows (in thousands, except share and per share data):
|
|
Three Months Ended March 31, |
||||||
|
|
2022 |
|
2021 |
||||
|
|
|
|
|||||
Net income attributable to CBRE Group, Inc. |
$ |
392,297 |
|
|
$ |
266,202 |
|
|
|
|
|
|
|||||
Plus / minus: |
|
|
|
|||||
Non-cash depreciation and amortization expense related to certain assets attributable to acquisitions |
|
41,048 |
|
|
|
18,430 |
|
|
Integration and other costs related to acquisitions |
|
8,121 |
|
|
|
— |
|
|
Carried interest incentive compensation expense to align with the timing of associated revenue |
|
22,856 |
|
|
|
15,332 |
|
|
Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period |
|
(1,696 |
) |
|
|
1,099 |
|
|
Costs incurred related to legal entity restructuring |
|
1,676 |
|
|
|
— |
|
|
Asset impairments (1) |
|
10,351 |
|
|
|
— |
|
|
Net fair value adjustments on strategic non-core investments |
|
136,364 |
|
|
|
(26,132 |
) |
|
Impact of adjustments on non-controlling interest |
|
(9,063 |
) |
|
|
— |
|
|
Tax impact of adjusted items, tax benefit attributable to legal entity restructuring, and strategic non-core above |
|
(132,718 |
) |
|
|
(339 |
) |
|
|
|
|
|
|||||
Core net income attributable to CBRE Group, Inc., as adjusted |
$ |
469,236 |
|
|
$ |
274,592 |
|
|
|
|
|
|
|||||
Core diluted income per share attributable to CBRE Group, Inc., as adjusted |
$ |
1.39 |
|
|
$ |
0.81 |
|
|
|
|
|
|
|||||
Weighted average shares outstanding for diluted income per share |
|
337,140,325 |
|
|
|
339,580,504 |
|
Consolidated adjusted EBITDA is calculated as follows (in thousands, totals may not add due to rounding):
|
Three Months Ended March 31, |
||||||
|
2022 |
|
2021 |
||||
|
|
|
|
||||
Net income attributable to CBRE Group, Inc. |
$ |
392,297 |
|
|
$ |
266,202 |
|
Net income attributable to non-controlling interests (2) |
|
3,974 |
|
|
|
2,775 |
|
Net income |
|
396,271 |
|
|
|
268,977 |
|
|
|
|
|
||||
Add: |
|
|
|
||||
Depreciation and amortization |
|
149,032 |
|
|
|
122,078 |
|
Asset impairments (1) |
|
10,351 |
|
|
|
— |
|
Interest expense, net of interest income |
|
12,826 |
|
|
|
10,106 |
|
(Benefit from) provision for income taxes |
|
(3,738 |
) |
|
|
76,327 |
|
Integration and other costs related to acquisitions |
|
8,121 |
|
|
|
— |
|
Carried interest incentive compensation expense to align with the timing of associated revenue |
|
22,856 |
|
|
|
15,332 |
|
Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period |
|
(1,696 |
) |
|
|
1,099 |
|
Costs incurred related to legal entity restructuring |
|
1,676 |
|
|
|
— |
|
Consolidated adjusted EBITDA |
$ |
595,699 |
|
|
$ |
493,919 |
|
|
|
|
|
||||
Adjusted EBITDA attributable to non-controlling interests (2) |
$ |
18,500 |
|
|
$ |
2,775 |
|
Adjusted EBITDA attributable to CBRE Group, Inc. (2) |
$ |
577,199 |
|
|
$ |
491,144 |
_______________ |
||
(1) |
Represents impairment charges recorded due to the company exiting its Advisory services business in Russia. |
|
(2) |
In conjunction with the acquisition of 60% interest in Turner & Townsend in the fourth quarter of 2021, we modified our definition of Adjusted EBITDA and to be inclusive of net income attributable to non-controlling interests and have recast prior periods to conform to this definition. |
Core EBITDA is calculated as follows (in thousands):
|
Three Months Ended March 31, |
||||||
|
2022 |
|
2021 |
||||
|
|
|
|
||||
Consolidated adjusted EBITDA |
$ |
595,699 |
|
|
$ |
493,919 |
|
Less: net fair value adjustments on strategic non-core investments |
$ |
(136,364 |
) |
|
$ |
26,132 |
|
Core EBITDA |
$ |
732,063 |
|
|
$ |
467,787 |
Consolidated adjusted EBITDA for the trailing twelve months ended March 31, 2022 is calculated as follows (in thousands):
|
Trailing
Twelve Months Ended
|
|||
|
|
|||
Net income attributable to CBRE Group, Inc. |
$ |
1,962,669 |
|
|
Net income attributable to non-controlling interests |
|
6,540 |
|
|
Net income |
|
1,969,209 |
|
|
|
|
|||
Add: |
|
|||
Depreciation and amortization |
|
552,825 |
|
|
Asset impairments |
|
10,351 |
|
|
Interest expense, net of interest income |
|
53,072 |
|
|
Provision for income taxes |
|
487,441 |
|
|
Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period |
|
(8,520 |
) |
|
Costs incurred related to legal entity restructuring |
|
1,676 |
|
|
Integration and other costs related to acquisitions |
|
52,673 |
|
|
Carried interest incentive compensation expense to align with the timing of associated revenue |
|
57,465 |
|
|
|
|
|||
Consolidated adjusted EBITDA |
$ |
3,176,192 |
|
Revenue includes client reimbursed pass-through costs largely associated with employees that are dedicated to client facilities and subcontracted vendor work performed for clients. Reimbursement related to subcontracted vendor work generally has no margin and has been excluded from net revenue. Reconciliations are shown below (dollars in thousands):
|
|
Three Months Ended March 31, |
||||
|
|
2022 |
|
2021 |
||
Property Management Revenue |
|
|
|
|||
Revenue |
$ |
455,872 |
|
$ |
427,188 |
|
Less: Pass through costs also recognized as revenue |
|
17,778 |
|
|
18,619 |
|
Net revenue |
$ |
438,094 |
|
$ |
408,569 |
|
Three Months Ended March 31, |
|||||
|
2022 |
|
2021 |
|||
Facilities Management Revenue |
|
|
|
|||
Revenue |
$ |
3,800,688 |
|
$ |
3,479,500 |
|
Less: Pass through costs also recognized as revenue |
|
2,558,159 |
|
|
2,323,011 |
|
Net revenue |
$ |
1,242,529 |
|
$ |
1,156,489 |
|
Three Months Ended March 31, 2022 |
|||||||||||
|
Project Management
|
|
Turner & Townsend |
|
Total
|
|||||||
Project Management Revenue |
|
|
|
|
|
|||||||
Revenue |
$ |
692,801 |
|
|
$ |
312,128 |
|
|
$ |
1,004,929 |
|
|
Less: Pass through costs also recognized as revenue |
|
(345,751 |
) |
|
|
(35,217 |
) |
|
|
(380,968 |
) |
|
Net revenue |
$ |
347,050 |
|
|
$ |
276,911 |
|
|
$ |
623,961 |
|
|
Three Months Ended March 31, 2021 |
||||||||||
|
Project Management
|
|
Turner & Townsend |
|
Total
|
||||||
Project Management Revenue |
|
|
|
|
|
||||||
Revenue |
$ |
546,382 |
|
|
$ |
— |
|
$ |
546,382 |
|
|
Less: Pass through costs also recognized as revenue |
|
(238,265 |
) |
|
|
— |
|
|
(238,265 |
) |
|
Net revenue |
$ |
308,117 |
|
|
$ |
— |
|
$ |
308,117 |
|
Below represents a reconciliation of REI business line operating profitability to REI segment operating profit (in thousands):
|
Three Months Ended March 31, |
|||||||
Real Estate Investments |
2022 |
|
2021 |
|||||
Investment management operating profit |
$ |
61,293 |
|
|
$ |
70,161 |
|
|
Global real estate development operating profit |
|
106,705 |
|
|
|
9,938 |
|
|
Hana and segment overhead operating loss |
|
(946 |
) |
|
|
(17,032 |
) |
|
Real estate investments segment operating profit |
$ |
167,052 |
|
|
$ |
63,067 |
|
Чистая прибыль выросла на 47%, а прибыль на акцию по GAAP выросла на 48% до $1,16
Базовая Скорректированная Чистая прибыль Выросла на 71%, а Базовая прибыль на акцию Выросла на 72% до $1,39
ДАЛЛАС--(BUSINESS WIRE)--CBRE Group, Inc. (NYSE:CBRE) сегодня сообщила о финансовых результатах за первый квартал, закончившийся 31 марта 2022 года.
“Год начался хорошо для CBRE с отличной динамикой во всех трех бизнес-сегментах. Мы продолжаем реализовывать стратегию диверсификации нашего бизнеса – как органически, так и за счет инвестиций – в широком диапазоне по типам активов, направлениям бизнеса, клиентам и географическим регионам. Наши результаты за квартал показывают, насколько эффективно работает эта стратегия”, - сказал Боб Сулентич, президент и главный исполнительный директор CBRE. “Мы генерируем значительные денежные средства, которые стратегически направляются в области роста нашего бизнеса. Примечательно, что Turner & Townsend продолжает работать с опережением наших ожиданий, как в финансовом, так и в операционном плане, и мы с энтузиазмом относимся к дополнительным аспектам, которые они привносят в CBRE, особенно в области инфраструктуры, природных ресурсов и услуг в области устойчивого развития. В то же время, когда мы инвестируем в наш бизнес, мы возвращаем акционерам денежные средства по повышенным ставкам, при этом выкуп акций в этом году составил на общую сумму 627 миллионов долларов”.
Обзор Консолидированных Финансовых результатов
В следующей таблице представлены основные показатели деятельности CBRE (в миллионах долларов, за исключением данных на акцию):
|
|
|
|
|
% Change |
|||||||||
|
Q1 2022 |
|
Q1 2021 |
|
USD |
|
LC (1) |
|||||||
Operating Results |
|
|
|
|
|
|
|
|||||||
Revenue |
$ |
7,333 |
|
|
$ |
5,939 |
|
|
23.5 |
% |
|
25.5 |
% |
|
Net revenue (2) |
|
4,376 |
|
|
|
3,359 |
|
|
30.3 |
% |
|
32.5 |
% |
|
GAAP net income |
|
392 |
|
|
|
266 |
|
|
47.4 |
% |
|
50.0 |
% |
|
GAAP EPS |
$ |
1.16 |
|
|
$ |
0.78 |
|
|
48.4 |
% |
|
51.1 |
% |
|
Core adjusted net income (3) |
|
469 |
|
|
|
275 |
|
|
70.9 |
% |
|
75.1 |
% |
|
Core EBITDA (4) |
|
732 |
|
|
|
468 |
|
|
56.5 |
% |
|
59.3 |
% |
|
Core EPS (3) |
$ |
1.39 |
|
|
$ |
0.81 |
|
|
72.1 |
% |
|
76.4 |
% |
|
|
|
|
|
|
|
|
|
|||||||
Cash Flow Results |
|
|
|
|
|
|
|
|||||||
Cash flow used in operations |
$ |
(394 |
) |
|
$ |
(193 |
) |
|
|
|
|
|||
Less: Capital expenditures |
|
42 |
|
|
|
30 |
|
|
|
|
|
|||
Free cash flow (5) |
$ |
(436 |
) |
|
$ |
(223 |
) |
|
|
|
|
Операционные денежные потоки за первый квартал 2022 года включают негативное влияние примерно на 133 миллиона долларов, связанное со сроками определенных налоговых платежей и возвратов денежных средств.
Сегмент консультационных услуг
В следующей таблице представлены основные показатели деятельности сегмента консультационных услуг (в миллионах долларов, итоговые суммы могут не добавляться из-за округления):
|
|
|
|
|
% Change |
|||||||||
|
Q1 2022 |
|
Q1 2021 |
|
USD |
|
LC |
|||||||
Revenue |
$ |
2,248 |
|
|
$ |
1,708 |
|
|
31.6 |
% |
|
33.9 |
% |
|
Net revenue |
|
2,231 |
|
|
|
1,689 |
|
|
32.0 |
% |
|
34.4 |
% |
|
Segment operating profit (6) |
|
466 |
|
|
|
333 |
|
|
40.0 |
% |
|
42.3 |
% |
|
Segment operating profit on revenue margin (7) |
|
20.7 |
% |
|
|
19.5 |
% |
|
1.2 pts |
|
1.2 pts |
|||
Segment operating profit on net revenue margin (7) |
|
20.9 |
% |
|
|
19.7 |
% |
|
1.2 pts |
|
1.2 pts |
Примечание: все проценты изменений указаны по сравнению с первым кварталом 2021 года, за исключением отмеченных случаев.
Продажи недвижимости: Глобальная выручка выросла на 58% (62% в местной валюте) и на 44% превысила пик первого квартала, предшествовавший пандемии (1 квартал 2020 года).
Аренда недвижимости: Глобальная выручка выросла на 49% (50% в местной валюте) и на 20% превысила пик первого квартала, предшествовавший пандемии (1 квартал 2019 года).
Выдача коммерческих ипотечных кредитов: Выручка выросла на 4% (в той же местной валюте).
Другие Направления Консультационной деятельности:
Сегмент глобальных решений для рабочих мест (GWS)
В следующей таблице представлены основные показатели сегмента GWS (в миллионах долларов, итоговые суммы могут не суммироваться из-за округления):
|
|
|
|
|
% Change |
|||||||||
|
Q1 2022 |
|
Q1 2021 |
|
USD |
|
LC |
|||||||
Revenue |
$ |
4,806 |
|
|
$ |
4,026 |
|
|
19.4 |
% |
|
21.2 |
% |
|
Net revenue |
|
1,866 |
|
|
|
1,465 |
|
|
27.4 |
% |
|
29.4 |
% |
|
Segment operating profit |
|
203 |
|
|
|
152 |
|
|
33.2 |
% |
|
36.0 |
% |
|
Segment operating profit on revenue margin |
|
4.2 |
% |
|
|
3.8 |
% |
|
0.4 pts |
|
0.5 pts |
|||
Segment operating profit on net revenue margin |
|
10.9 |
% |
|
|
10.4 |
% |
|
0.5 pts |
|
0.5 pts |
Примечание: все проценты изменений указаны по сравнению с первым кварталом 2021 года, за исключением отмеченных случаев.
Без учета выручки Turner & Townsend в размере 312,1 млн долларов США (60% акций приобретены 1 ноября 2021 года) выручка GWS выросла на 12% (13% в местной валюте). Чистая выручка увеличилась на 9% (10% в местной валюте), без учета 276,9 млн долларов от Turner & Townsend.
Сегмент Инвестиций в недвижимость (REI)
В следующей таблице представлены основные показатели деятельности сегмента REI (в миллионах долларов):
|
|
|
|
|
% Change |
|||||||
|
Q1 2022 |
|
Q1 2021 |
|
USD |
|
LC |
|||||
Revenue |
$ |
284 |
|
$ |
211 |
|
34.4 |
% |
|
37.6 |
% |
|
Segment operating profit |
|
167 |
|
|
63 |
|
164.9 |
% |
|
167.2 |
% |
Примечание: все проценты изменений указаны по сравнению с первым кварталом 2021 года, за исключением отмеченных случаев.
Девелопмент недвижимости: Операционная прибыль (8) выросла почти на 97 миллионов долларов до почти 107 миллионов долларов, чему способствовали высокие темпы монетизации активов совместного инвестирования.
Управление инвестициями: Выручка выросла на 14% (17% в местной валюте) до почти 151 миллиона долларов, что обусловлено более высокой оценкой активов.
Корпоративный и прочие сегменты
Корпоративный и прочие сегменты принесли убыток в размере 239,7 млн. долл.
Обзор распределения капитала
Обзор заемных средств и финансирования
|
As of |
||
|
March 31, 2022 |
||
Total debt |
$ |
1,767 |
|
Less: Cash (11) |
|
1,518 |
|
Net debt (10) |
$ |
249 |
|
|
|
||
Divided by: Trailing twelve month consolidated adjusted EBITDA (12) |
$ |
3,176 |
|
|
|
||
Net leverage ratio |
0.08x |
Подробности конференц-звонка
Веб-трансляция прибыли компании за первый квартал и телефонная конференция состоятся сегодня, в четверг, 5 мая 2022 года, в 8:30 утра по восточному времени. Инвесторам рекомендуется получить доступ к веб-трансляции по этой ссылке или они могут перейти по этой ссылке, начиная с 8:15 утра по восточному времени, для автоматического доступа к телефонной конференции.
В качестве альтернативы инвесторы могут подключиться к конференц-связи, используя следующие телефонные номера с поддержкой оператора: 877.407.8037 (США) или 201.689.8037 (международный). Повтор звонка будет доступен, начиная с 1:00 вечера по восточному времени 5 мая 2022 года. Доступ к воспроизведению можно получить, набрав 877.660.6853 (США) или 201.612.7415 (международный) и используя код доступа: 13728580#. Стенограмма разговора будет доступна на веб-сайте компании по связям с инвесторами по адресу https://ir.cbre.com .
О компании CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), компания из списка Fortune 500 и S&P 500 со штаб-квартирой в Далласе, является крупнейшей в мире фирмой по оказанию услуг в сфере коммерческой недвижимости и инвестициям (по данным выручки за 2021 год). В компании работает более 105 000 сотрудников (исключая сотрудников Turner & Townsend), обслуживающих клиентов в более чем 100 странах. CBRE обслуживает широкий круг клиентов с помощью комплексного набора услуг, включая управление объектами, транзакциями и проектами; управление недвижимостью; управление инвестициями; оценку и оценку; аренду имущества; стратегический консалтинг; продажу недвижимости; ипотечные услуги и услуги по развитию. Пожалуйста, посетите наш веб-сайт по адресу www.cbre.com . Мы регулярно размещаем важную информацию на нашем веб-сайте, включая презентации компаний и инвесторов, а также финансовую информацию. Мы намерены использовать наш веб-сайт в качестве средства раскрытия материалов, непубличной информации и для выполнения наших обязательств по раскрытию информации в соответствии с Положением FD. Такая информация будет включена в раздел по связям с инвесторами нашего веб-сайта по адресу https://ir.cbre.com . Соответственно, инвесторы должны следить за такой частью нашего веб-сайта, в дополнение к отслеживанию наших пресс-релизов, заявлений Комиссии по ценным бумагам и биржам, а также публичных телефонных конференций и веб-трансляций.
Безопасная гавань и Сноски
Настоящий пресс-релиз содержит прогнозные заявления по смыслу положений “безопасной гавани” Закона о реформе судебных разбирательств по частным ценным бумагам 1995 года, включая заявления относительно будущих темпов роста компании, операций, перспектив бизнеса, размещения капитала и финансовых показателей, включая консолидированную прибыль. Эти прогнозные заявления связаны с известными и неизвестными рисками, неопределенностями и другими факторами, которые могут привести к тому, что фактические результаты и показатели компании в будущих периодах будут существенно отличаться от любых будущих результатов или показателей, предложенных в прогнозных заявлениях в этом пресс-релизе. Любые прогнозные заявления действуют только на дату настоящего пресс-релиза, и, за исключением случаев, предусмотренных применимым законодательством о ценных бумагах, компания прямо отказывается от каких-либо обязательств по обновлению или пересмотру любого из них, чтобы отразить фактические результаты, любые изменения в ожиданиях или любые изменения в событиях. Если компания обновляет одно или несколько заявлений прогнозного характера, не следует делать никаких выводов о том, что она будет вносить дополнительные обновления в отношении тех или иных заявлений прогнозного характера. Факторы, которые могут привести к результатам, существенно отличающимся включают, но не ограничиваясь: сбои в общих экономических, политических и регуляторных условий и значимых событий в области общественного здравоохранения или начала войны, особенно в регионах или отраслях промышленности, где наши дела могут быть сконцентрированы; волатильность и негативные изменения в ценные бумаги, капитал или кредитные рынки, повышение процентных ставок и условий, влияющих на стоимость недвижимости, внутри и за пределами Соединенных Штатов; низкая эффективность инвестиций в недвижимость или другие условия, которые негативно влияют на клиентов готовность сделать недвижимости или долгосрочные договорные обязательства, а также стоимость и доступность капитала для инвестиций в недвижимое имущество; валютные колебания и изменения на валютных ограничений, торговые санкции и "импорт/экспорт" и правил трансфертного ценообразования; сбои в предпринимательской деятельности, рыночных и операционных условий, связанных с Covid-19 пандемией и последствий государственных правил и положений, направленных на минимизацию последствий этой пандемии, в том числе, без ограничения, правила и нормы, которые влияют на нас создателем кредита и сервисный центр для США, спонсируемые правительством предприятия (ГСЭН); наша способность конкурировать в глобальном масштабе или в определенных географических рынках или сегментах бизнеса, имеющие существенное значение для нас, наши возможности для выявления, приобретения и интеграции выгодных предприятий; расходы и потенциал будущего капитала, требования к бизнесу мы можем приобрести; интеграция задач, вытекающих из компаний мы можем приобрести; рост безработицы и общее замедление в коммерческую деятельность; тенденции в ценообразовании и риски на коммерческую недвижимость услуги; влияние существенных изменений в ставки капитализации в различных видах собственность; сокращение компаний их широкое использование аутсорсинга для своей коммерческой недвижимости потребностей, что повлияет на наши доходы и операционных показателей; клиент действий по преодолению проекта затраты и снизить аутсорсинг кадровых уровнях; способность к дальнейшей диверсификации наших доходов модели, чтобы компенсировать циклические экономические тенденции в индустрии коммерческой недвижимости; наши возможности для привлечения новых пользователей и инвесторов-клиентов; нашу способность сохранить крупных клиентов и продления контрактов; наша способность использовать наши глобальные сервисы платформы, чтобы максимизировать и поддерживать долгосрочный денежный поток; нам возможность продолжать инвестировать в нашей платформе и клиента услуги; наши возможности для поддержания расходов дисциплины; появление новых бизнес-моделей и технологий; негативной огласки или вреда для нашего бренда и репутации; отказ от третьих лиц соблюдение соглашений об уровне обслуживания или законодательным и нормативным требованиям; способность нашего инвестиционного управления бизнесом для сохранения и увеличения активов под управлением и достичь желаемого инвестиционного дохода для наших инвесторов, и каких-либо потенциальных судебных разбирательств, связанных с, обязательств или репутационный вред возможно, если мы этого не сделаем; нам возможность управлять колебаниями чистой прибыли и денежного потока, что может быть следствием плохой работы нашей инвестиционной программы, в том числе нашего участия в качестве основного инвестиции в недвижимость; способность наших косвенные дочерние компании на рынках капитала, Инк., периодически дополнять или заменять, на приемлемых условиях, договора на свой склад кредитных линий; снижение кредитной активности США Гсес, регулирования такой деятельности и наших ипотеки доход от коммерческой недвижимости, ипотечного рынка; изменения в США и нормами международного права и нормативно-правовые условия (в том числе, касающихся противодействия коррупции, отмывания денег, торговли, санкций, тарифов, валютного контроля и других торговых законов управления), особенно в Азии, Африке, России, Восточной Европы и Ближнего Востока, из-за ряда конфликтов и политической нестабильности в этих регионах; судебная практика и ее финансовые и репутационные риски для нас; наш воздействия обязательств в связи с недвижимостью, консультационных и управление недвижимостью деятельности и нашей способности обеспечить достаточное страховое покрытие на приемлемых условиях; способность удерживать, привлечения и стимулирования ключевых сотрудников; нашу способность управлять организационные проблемы, связанные с нашими размер; обязательства по гарантии, или за строительные дефекты, которые мы понесем в нашем услуг по развитию бизнеса; различия в исторически традиционных сезонных факторов, которые вызывают наш бизнес не выполняет своей функции; оперировать под долговыми инструментами, а также ограничения в нашей способности брать на себя дополнительные долги, и потенциальное увеличение затрат по займам в США с кредитными рейтингами, понизить; наши и наших сотрудников-способность выполнять и внедрять информационные технологии стратегий и тенденций; угроз кибербезопасности или других угроз для наших информационно-коммуникационных сетей, в том числе возможного незаконного присвоения активов или конфиденциальной информации, повреждения данных или сбоев в работе; наша способность соблюдать законы и правила, относящиеся к нашей глобальной деятельности, в том числе недвижимости, лицензирования, налогового и трудового законодательства и нормативных актов, а также конфиденциальность данных и защиту положения, а также антикоррупционного законодательства и торговые санкции США и других стран; изменения в применимых налоговых или бухгалтерских требований; невозможность для нас, чтобы внедрить и поддерживать эффективную систему внутреннего контроля за подготовкой финансовой отчетности; эффект от внедрения новых правил и стандартов бухгалтерского учета или нарушения наших гудвилла и нематериальных активов; и результативность наших инвестиций в компании, которые мы не контролируем.
Дополнительная информация о факторах, которые могут повлиять на финансовую информацию компании, обсуждается в разделах “Факторы риска”, “Обсуждение и анализ Руководством Финансового состояния и результатов деятельности”, “Количественное и качественное раскрытие информации о Рыночном риске” и “Предостережение в отношении прогнозных заявлений” в нашем Годовом отчете по Форме 10-K за год, закончившийся 31 декабря 2021 года, наш последний ежеквартальный отчет по форме 10-Q, а также в пресс-релизах компании и других периодических заявках в Комиссию по ценным бумагам и биржам (SEC). Такие заявки доступны в открытом доступе и могут быть получены на веб-сайте компании по адресу www.cbre.com или по письменному запросу Отдела по связям с инвесторами CBRE по адресу investorrelations@cbre.com .
Термины “чистая выручка”, “базовая скорректированная чистая прибыль”, “базовая прибыль на акцию”, “консолидированная скорректированная EBITDA”, “операционная прибыль по бизнес-линии”, “операционная прибыль сегмента по марже выручки”, “операционная прибыль сегмента по марже чистой выручки”, “базовая EBITDA” и “свободные денежные средства поток”, все из которых CBRE использует в этом пресс-релизе, являются финансовыми показателями, не относящимися к GAAP, в соответствии с руководящими принципами SEC, и вам следует обратиться к сноскам ниже, а также к разделу “Финансовые показатели, не относящиеся к GAAP” в этом пресс-релизе для дальнейшего объяснения этих мер. Мы также включили в этот раздел сверку этих показателей за конкретные периоды с их наиболее непосредственно сопоставимым финансовым показателем, рассчитанным и представленным в соответствии с GAAP за эти периоды.
Итоговые значения могут не суммироваться в таблицах в миллионах, включенных в этот выпуск, из-за округления.
(1) |
Local currency percentage change is calculated by comparing current-period results at prior-period exchange rates versus prior-period results. |
|
(2) |
Net revenue is gross revenue less costs largely associated with subcontracted vendor work performed for clients. These costs are reimbursable by clients and generally have no margin. |
|
(3) |
Core adjusted net income and core earnings per diluted share (or core EPS) exclude the effect of select items from GAAP net income and GAAP earnings per diluted share as well as adjust the provision for income taxes and impact on non-controlling interest for such charges. Adjustments during the periods presented included non-cash depreciation and amortization expense related to certain assets attributable to acquisitions, certain carried interest incentive compensation expense (reversal) to align with the timing of associated revenue, the impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in the period, costs incurred related to legal entity restructuring, integration and other costs related to acquisitions, and asset impairments. It also removes the fair value changes and related tax impact of certain strategic non-core non-controlling equity investments that are not directly related to our business segments (including venture capital “VC” related investments). Note: Core adjusted EPS has been renamed core EPS for simplicity. |
|
(4) |
Core EBITDA has been added to highlight operational performance excluding the impact of non-core investments. Core EBITDA removes from consolidated adjusted EBITDA the fair value changes, on a pre-tax basis, of certain strategic non-core non-controlling equity investments that are not directly related to our business segments (including venture capital “VC” related investments). |
|
(5) |
Free cash flow is calculated as cash flow from operations, less capital expenditures (reflected in the investing section of the consolidated statement of cash flows). |
|
(6) |
Segment operating profit is the measure reported to the chief operating decision maker (CODM) for purposes of making decisions about allocating resources to each segment and assessing performance of each segment. Segment operating profit represents earnings, inclusive of non-controlling interest, before net interest expense, write-off of financing costs on extinguished debt, income taxes, depreciation and amortization and asset impairments, as well as adjustments related to the following: certain carried interest incentive compensation expense (reversal) to align with the timing of associated revenue, fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in the period, costs incurred related to legal entity restructuring, and integration and other costs related to acquisitions. The above definition was changed in the fourth quarter of 2021 to include non-controlling interest given the acquisition of Turner & Townsend. Prior period results have been recast to conform to this definition. |
|
(7) |
Segment operating profit on revenue and net revenue margins represent segment operating profit divided by revenue and net revenue, respectively. |
|
(8) |
Represents line of business profitability/losses, as adjusted. |
|
(9) |
For the three months ended March 31, 2022, the company incurred capital expenditures of $42.1 million (reflected in the investing section of the condensed consolidated statement of cash flows) and received tenant concessions from landlords of $2.1 million (reflected in the operating section of the condensed consolidated statement of cash flows). |
|
(10) |
Net debt is calculated as cash available for company use less total debt (excluding non-recourse debt). |
|
(11) |
Cash represents cash and cash equivalents (excluding restricted cash) and excludes $139.3 million of cash in consolidated funds and other entities not available for company use at March 31, 2022. |
|
(12) |
Consolidated adjusted EBITDA represents earnings, inclusive of non-controlling interest, before net interest expense, write-off of financing costs on extinguished debt, income taxes, depreciation and amortization, asset impairments, adjustments related to certain carried interest incentive compensation expense (reversal) to align with the timing of associated revenue, fair value adjustments to real estate assets acquired in the acquisition of Telford Homes plc in 2019 (the Telford acquisition) (purchase accounting) that were sold in the period, costs incurred related to legal entity restructuring, and integration and other costs related to acquisitions. The above definition was changed in the fourth quarter of 2021 to include non-controlling interest given the acquisition of Turner & Townsend. Prior period results have been recast to conform to this definition. |
CBRE Group, INC. |
|||||||
OPERATING RESULTS |
|||||||
FOR THREE MONTHS ENDED MARCH 31, 2022 AND 2021 |
|||||||
(in thousands, except share and per share data) |
|||||||
(Unaudited) |
|||||||
|
|
|
|||||
|
|
Three Months Ended March 31, |
|||||
|
|
2022 |
|
2021 |
|||
Revenue: |
|
|
|
||||
Net revenue |
$ |
4,376,029 |
|
|
$ |
3,358,983 |
|
Pass through costs also recognized as revenue |
|
2,956,904 |
|
|
|
2,579,896 |
|
Total revenue |
|
7,332,933 |
|
|
|
5,938,879 |
|
|
|
|
|
||||
Costs and expenses: |
|
|
|
||||
Cost of revenue |
|
5,752,194 |
|
|
|
4,719,546 |
|
Operating, administrative and other |
|
1,065,996 |
|
|
|
828,327 |
|
Depreciation and amortization |
|
149,032 |
|
|
|
122,078 |
|
Asset impairments |
|
10,351 |
|
|
|
— |
|
Total costs and expenses |
|
6,977,573 |
|
|
|
5,669,951 |
|
|
|
|
|
||||
Gain on disposition of real estate |
|
21,592 |
|
|
|
156 |
|
|
|
|
|
||||
Operating income |
|
376,952 |
|
|
|
269,084 |
|
|
|
|
|
||||
Equity income from unconsolidated subsidiaries |
|
42,871 |
|
|
|
83,594 |
|
Other (loss) income |
|
(14,464 |
) |
|
|
2,732 |
|
Interest expense, net of interest income |
|
12,826 |
|
|
|
10,106 |
|
Income before (benefit from) provision for income taxes |
|
392,533 |
|
|
|
345,304 |
|
(Benefit from) provision for income taxes |
|
(3,738 |
) |
|
|
76,327 |
|
Net income |
|
396,271 |
|
|
|
268,977 |
|
Less: Net income attributable to non-controlling interests |
|
3,974 |
|
|
|
2,775 |
|
Net income attributable to CBRE Group, Inc. |
$ |
392,297 |
|
|
$ |
266,202 |
|
|
|
|
|
||||
Basic income per share: |
|
|
|
||||
Net income per share attributable to CBRE Group, Inc. |
$ |
1.18 |
|
|
$ |
0.79 |
|
Weighted average shares outstanding for basic income per share |
|
331,925,104 |
|
|
|
335,860,494 |
|
|
|
|
|
||||
Diluted income per share: |
|
|
|
||||
Net income per share attributable to CBRE Group, Inc. |
$ |
1.16 |
|
|
$ |
0.78 |
|
Weighted average shares outstanding for diluted income per share |
|
337,140,325 |
|
|
|
339,580,504 |
|
|
|
|
|
||||
Consolidated adjusted EBITDA (1) |
$ |
595,699 |
|
|
$ |
493,919 |
_______________ |
||
(1) |
In conjunction with the acquisition of 60% interest in Turner & Townsend in the fourth quarter of 2021, we modified our definition of Consolidated adjusted EBITDA and Segment Operating Profit (SOP) to be inclusive of net income attributable to non-controlling interests. Prior period results have been recast to conform to this definition. |
CBRE Group, INC. |
||||||||||||||||||||||||||||||||
SEGMENT RESULTS |
||||||||||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2022 |
||||||||||||||||||||||||||||||||
(in thousands, totals may not add due to rounding) |
||||||||||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||
|
Three Months Ended March 31, 2022 |
|||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
Advisory
|
|
Global
Solutions |
|
Real Estate
|
|
Subtotal |
|
Corporate (1) |
|
Other |
|
Total Corporate,
|
|
Consolidated |
|||||||||||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net revenue |
$ |
2,230,670 |
|
|
$ |
1,866,490 |
|
$ |
283,757 |
|
|
$ |
4,380,917 |
|
|
$ |
(4,888 |
) |
|
$ |
— |
|
|
$ |
(4,888 |
) |
|
$ |
4,376,029 |
|
||
Pass through costs also recognized as revenue |
|
17,778 |
|
|
|
2,939,126 |
|
|
— |
|
|
|
2,956,904 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,956,904 |
|
||
Total revenue |
|
2,248,448 |
|
|
|
4,805,616 |
|
|
283,757 |
|
|
|
7,337,821 |
|
|
|
(4,888 |
) |
|
|
— |
|
|
|
(4,888 |
) |
|
|
7,332,933 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Cost of revenue |
|
1,312,291 |
|
|
|
4,373,967 |
|
|
70,053 |
|
|
|
5,756,311 |
|
|
|
(4,114 |
) |
|
|
(3 |
) |
|
|
(4,117 |
) |
|
|
5,752,194 |
|
||
Operating, administrative and other |
|
480,255 |
|
|
|
239,386 |
|
|
246,752 |
|
|
|
966,393 |
|
|
|
97,363 |
|
|
|
2,240 |
|
|
|
99,603 |
|
|
|
1,065,996 |
|
||
Depreciation and amortization |
|
74,887 |
|
|
|
61,969 |
|
|
3,856 |
|
|
|
140,712 |
|
|
|
8,320 |
|
|
|
— |
|
|
|
8,320 |
|
|
|
149,032 |
|
||
Asset impairments |
|
10,351 |
|
|
|
— |
|
|
— |
|
|
|
10,351 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,351 |
|
||
Total costs and expenses |
|
1,877,784 |
|
|
|
4,675,322 |
|
|
320,661 |
|
|
|
6,873,767 |
|
|
|
101,569 |
|
|
|
2,237 |
|
|
|
103,806 |
|
|
|
6,977,573 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Gain on disposition of real estate |
|
— |
|
|
|
— |
|
|
21,592 |
|
|
|
21,592 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
21,592 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating income (loss) |
|
370,664 |
|
|
|
130,294 |
|
|
(15,312 |
) |
|
|
485,646 |
|
|
|
(106,457 |
) |
|
|
(2,237 |
) |
|
|
(108,694 |
) |
|
|
376,952 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Equity income (loss) from unconsolidated subsidiaries |
|
9,756 |
|
|
|
863 |
|
|
157,440 |
|
|
|
168,059 |
|
|
|
— |
|
|
|
(125,188 |
) |
|
|
(125,188 |
) |
|
|
42,871 |
|
||
Other (loss) income |
|
(4 |
) |
|
|
1,489 |
|
|
(92 |
) |
|
|
1,393 |
|
|
|
(6,918 |
) |
|
|
(8,939 |
) |
|
|
(15,857 |
) |
|
|
(14,464 |
) |
||
Add-back: Depreciation and amortization |
|
74,887 |
|
|
|
61,969 |
|
|
3,856 |
|
|
|
140,712 |
|
|
|
8,320 |
|
|
|
— |
|
|
|
8,320 |
|
|
|
149,032 |
|
||
Add-back: Asset impairments |
|
10,351 |
|
|
|
— |
|
|
— |
|
|
|
10,351 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,351 |
|
||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Integration and other costs related to acquisitions |
|
— |
|
|
|
8,121 |
|
|
— |
|
|
|
8,121 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,121 |
|
||
Carried interest incentive compensation expense to align with the timing of associated revenue |
|
— |
|
|
|
— |
|
|
22,856 |
|
|
|
22,856 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
22,856 |
|
||
Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period |
|
— |
|
|
|
— |
|
|
(1,696 |
) |
|
|
(1,696 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,696 |
) |
||
Costs incurred related to legal entity restructuring |
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
1,676 |
|
|
|
— |
|
|
|
1,676 |
|
|
|
1,676 |
|
||
Segment operating profit (loss) |
$ |
465,654 |
|
|
$ |
202,736 |
|
$ |
167,052 |
|
|
$ |
835,442 |
|
|
$ |
(103,379 |
) |
|
$ |
(136,364 |
) |
|
$ |
(239,743 |
) |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Segment operating profit attributable to non-controlling interests |
$ |
970 |
|
|
$ |
16,854 |
|
$ |
674 |
|
|
$ |
18,498 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
||||
Segment operating profit (loss) attributable to CBRE Group, Inc. |
$ |
464,684 |
|
|
$ |
185,882 |
|
$ |
166,378 |
|
|
$ |
816,944 |
|
|
$ |
(103,379 |
) |
|
$ |
(136,364 |
) |
|
$ |
(239,743 |
) |
|
|
||||
Consolidated adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
595,699 |
|
_______________ |
||
(1) |
Includes elimination of inter-segment revenue. |
CBRE Group, INC. |
||||||||||||||||||||||||||||
SEGMENT RESULTS—(CONTINUED) |
||||||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2021 |
||||||||||||||||||||||||||||
(in thousands, totals may not add due to rounding) |
||||||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||
|
Three Months Ended March 31, 2021 |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Advisory
|
Global
Solutions |
Real Estate
|
Subtotal |
Corporate (1) |
Other |
Total Corporate,
|
Consolidated |
||||||||||||||||||||
Revenue: |
|
|
|
|
|
|
|
|
||||||||||||||||||||
Net revenue |
$ |
1,689,393 |
$ |
1,464,606 |
|
$ |
211,129 |
|
$ |
3,365,128 |
$ |
(6,145 |
) |
$ |
— |
$ |
(6,145 |
) |
$ |
3,358,983 |
||||||||
Pass through costs also recognized as revenue |
|
18,619 |
|
2,561,277 |
|
|
— |
|
|
2,579,896 |
|
— |
|
|
— |
|
— |
|
|
2,579,896 |
||||||||
Total revenue |
|
1,708,012 |
|
4,025,883 |
|
|
211,129 |
|
|
5,945,024 |
|
(6,145 |
) |
|
— |
|
(6,145 |
) |
|
5,938,879 |
||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Costs and expenses: |
|
|
|
|
|
|
|
|
||||||||||||||||||||
Cost of revenue |
|
987,577 |
|
3,697,773 |
|
|
40,990 |
|
|
4,726,340 |
|
(6,794 |
) |
|
— |
|
(6,794 |
) |
|
4,719,546 |
||||||||
Operating, administrative and other |
|
388,607 |
|
176,011 |
|
|
180,980 |
|
|
745,598 |
|
82,729 |
|
|
— |
|
82,729 |
|
|
828,327 |
||||||||
Depreciation and amortization |
|
69,754 |
|
34,459 |
|
|
10,430 |
|
|
114,643 |
|
7,435 |
|
|
— |
|
7,435 |
|
|
122,078 |
||||||||
Total costs and expenses |
|
1,445,938 |
|
3,908,243 |
|
|
232,400 |
|
|
5,586,581 |
|
83,370 |
|
|
— |
|
83,370 |
|
|
5,669,951 |
||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Gain on disposition of real estate |
|
— |
|
— |
|
|
156 |
|
|
156 |
|
— |
|
|
— |
|
— |
|
|
156 |
||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Operating income (loss) |
|
262,074 |
|
117,640 |
|
|
(21,115 |
) |
|
358,599 |
|
(89,515 |
) |
|
— |
|
(89,515 |
) |
|
269,084 |
||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Equity income (loss) from unconsolidated subsidiaries |
|
750 |
|
(182 |
) |
|
56,894 |
|
|
57,462 |
|
— |
|
|
26,132 |
|
26,132 |
|
|
83,594 |
||||||||
Other income |
|
1 |
|
266 |
|
|
427 |
|
|
694 |
|
2,038 |
|
|
— |
|
2,038 |
|
|
2,732 |
||||||||
Add-back: Depreciation and amortization |
|
69,754 |
|
34,459 |
|
|
10,430 |
|
|
114,643 |
|
7,435 |
|
|
— |
|
7,435 |
|
|
122,078 |
||||||||
Adjustments: |
|
|
|
|
|
|
|
|
||||||||||||||||||||
Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period |
|
— |
|
— |
|
|
1,099 |
|
|
1,099 |
|
— |
|
|
— |
|
— |
|
|
1,099 |
||||||||
Carried interest incentive compensation expense to align with the timing of associated revenue |
|
— |
|
— |
|
|
15,332 |
|
|
15,332 |
|
— |
|
|
— |
|
— |
|
|
15,332 |
||||||||
Segment operating profit (loss) (2) |
$ |
332,579 |
$ |
152,183 |
|
$ |
63,067 |
|
$ |
547,829 |
$ |
(80,042 |
) |
$ |
26,132 |
$ |
(53,910 |
) |
|
|||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Segment operating profit attributable to non-controlling interests (2) |
$ |
279 |
$ |
6 |
|
$ |
2,736 |
|
$ |
3,021 |
$ |
— |
|
$ |
— |
$ |
— |
|
|
|||||||||
Segment operating profit (loss) attributable to CBRE Group, Inc. |
$ |
332,300 |
$ |
152,177 |
|
$ |
60,331 |
|
$ |
544,808 |
$ |
(80,042 |
) |
$ |
26,132 |
$ |
(53,910 |
) |
|
|||||||||
Consolidated adjusted EBITDA (2) |
|
|
|
|
|
|
|
$ |
493,919 |
_______________ |
||
(1) |
Includes elimination of inter-segment revenue. |
|
(2) |
In conjunction with the acquisition of 60% interest in Turner & Townsend in the fourth quarter of 2021, we modified our definition of adjusted EBITDA and SOP to be inclusive of net income attributable to non-controlling interests and have recast prior periods to conform to this definition. |
CBRE Group, INC. |
||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
(in thousands) |
||||||
(Unaudited) |
||||||
|
|
|
|
|||
|
March 31, 2022 |
|
December 31, 2021 |
|||
Assets: |
|
|
|
|||
Cash and cash equivalents (1) |
$ |
1,657,336 |
|
$ |
2,430,951 |
|
Restricted cash |
|
135,293 |
|
|
108,830 |
|
Receivables, net |
|
5,073,224 |
|
|
5,150,473 |
|
Warehouse receivables (2) |
|
1,194,800 |
|
|
1,303,717 |
|
Contract assets |
|
486,388 |
|
|
474,375 |
|
Income taxes receivable |
|
81,665 |
|
|
77,254 |
|
Property and equipment, net |
|
792,735 |
|
|
816,092 |
|
Operating lease assets |
|
1,030,391 |
|
|
1,046,377 |
|
Goodwill and other intangibles, net |
|
7,315,630 |
|
|
7,404,602 |
|
Investments in unconsolidated subsidiaries |
|
1,124,339 |
|
|
1,196,088 |
|
Other assets, net |
|
2,251,351 |
|
|
2,064,732 |
|
|
|
|
|
|||
Total assets |
$ |
21,143,152 |
|
$ |
22,073,491 |
|
|
|
|
|
|||
Liabilities: |
|
|
|
|||
Current liabilities, excluding debt and operating lease liabilities |
$ |
6,156,163 |
|
$ |
6,876,327 |
|
Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) (2) |
|
1,172,125 |
|
|
1,277,451 |
|
Revolving credit facility |
|
210,000 |
|
|
— |
|
Senior term loans, net |
|
442,093 |
|
|
454,539 |
|
4.875% senior notes, net |
|
595,705 |
|
|
595,463 |
|
2.500% senior notes, net |
|
488,414 |
|
|
488,121 |
|
Other debt |
|
30,826 |
|
|
32,668 |
|
Operating lease liabilities |
|
1,325,542 |
|
|
1,348,985 |
|
Other long-term liabilities |
|
1,439,459 |
|
|
1,640,820 |
|
|
|
|
|
|||
Total liabilities |
|
11,860,327 |
|
|
12,714,374 |
|
|
|
|
|
|||
Equity: |
|
|
|
|||
CBRE Group, Inc. stockholders' equity |
|
8,469,971 |
|
|
8,528,193 |
|
Non-controlling interests |
|
812,854 |
|
|
830,924 |
|
|
|
|
|
|||
Total equity |
|
9,282,825 |
|
|
9,359,117 |
|
|
|
|
|
|||
Total liabilities and equity |
$ |
21,143,152 |
|
$ |
22,073,491 |
_______________ |
||
(1) |
Includes $139.3 million and $125.2 million of cash in consolidated funds and other entities not available for company use as of March 31, 2022 and December 31, 2021, respectively. |
|
(2) |
Represents loan receivables, the majority of which are offset by borrowings under related warehouse line of credit facilities. |
CBRE Group, INC. |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(in thousands) |
||||||||
(Unaudited) |
||||||||
|
|
|||||||
|
Three Months Ended March 31, |
|||||||
|
2022 |
|
2021 |
|||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|||||
Net income |
$ |
396,271 |
|
|
$ |
268,977 |
|
|
Adjustments to reconcile net income to net cash used in operating activities: |
|
|
|
|||||
Depreciation and amortization |
|
149,032 |
|
|
|
122,078 |
|
|
Amortization of financing costs |
|
1,663 |
|
|
|
1,609 |
|
|
Gains related to mortgage servicing rights, premiums on loan sales and sales of other assets |
|
(28,422 |
) |
|
|
(72,045 |
) |
|
Asset impairments |
|
10,351 |
|
|
|
— |
|
|
Net realized and unrealized losses (gains), primarily from investments |
|
16,690 |
|
|
|
(2,732 |
) |
|
Provision for doubtful accounts |
|
3,303 |
|
|
|
731 |
|
|
Net compensation expense for equity awards |
|
36,863 |
|
|
|
35,786 |
|
|
Equity income from unconsolidated subsidiaries |
|
(42,871 |
) |
|
|
(83,594 |
) |
|
Distribution of earnings from unconsolidated subsidiaries |
|
146,743 |
|
|
|
32,986 |
|
|
Proceeds from sale of mortgage loans |
|
3,336,084 |
|
|
|
4,643,685 |
|
|
Origination of mortgage loans |
|
(3,221,312 |
) |
|
|
(3,909,261 |
) |
|
Decrease in warehouse lines of credit |
|
(105,326 |
) |
|
|
(708,491 |
) |
|
Tenant concessions received |
|
2,114 |
|
|
|
1,578 |
|
|
Purchase of equity securities |
|
(8,902 |
) |
|
|
(2,398 |
) |
|
Proceeds from sale of equity securities |
|
20,750 |
|
|
|
3,017 |
|
|
Increase in real estate under development |
|
(41,358 |
) |
|
|
(15,901 |
) |
|
(Increase) decrease in receivables, prepaid expenses and other assets (including contract and lease assets) (1) |
|
(156,061 |
) |
|
|
161,221 |
|
|
Decrease in accounts payable and accrued expenses and other liabilities (including contract and lease liabilities) |
|
(108,355 |
) |
|
|
(245,522 |
) |
|
Decrease in compensation and employee benefits payable and accrued bonus and profit sharing |
|
(725,216 |
) |
|
|
(469,213 |
) |
|
Decrease in net income taxes receivable/payable |
|
17,722 |
|
|
|
41,660 |
|
|
Other operating activities, net |
|
(93,270 |
) |
|
|
2,381 |
|
|
Net cash used in operating activities |
|
(393,507 |
) |
|
|
(193,448 |
) |
|
|
|
|
|
|||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|||||
Capital expenditures |
|
(42,056 |
) |
|
|
(29,597 |
) |
|
Acquisition of businesses, including net assets acquired and goodwill, net of cash acquired |
|
(16,792 |
) |
|
|
(2,726 |
) |
|
Contributions to unconsolidated subsidiaries |
|
(44,387 |
) |
|
|
(168,392 |
) |
|
Distributions from unconsolidated subsidiaries |
|
12,101 |
|
|
|
6,795 |
|
|
Other investing activities, net |
|
(4,487 |
) |
|
|
16 |
|
|
Net cash used in investing activities |
|
(95,621 |
) |
|
|
(193,904 |
) |
|
|
|
|
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|||||
Proceeds from revolving credit facility |
|
210,000 |
|
|
|
— |
|
|
Proceeds from notes payable on real estate |
|
19,368 |
|
|
|
23,737 |
|
|
Repayment of notes payable on real estate |
|
(13,954 |
) |
|
|
— |
|
|
Proceeds from issuance of 2.500% senior notes |
|
— |
|
|
|
492,255 |
|
|
Repurchase of common stock |
|
(367,863 |
) |
|
|
(61,108 |
) |
|
Acquisition of businesses (cash paid for acquisitions more than three months after purchase date) |
|
(13,556 |
) |
|
|
(512 |
) |
|
Units repurchased for payment of taxes on equity awards |
|
(31,395 |
) |
|
|
(34,883 |
) |
|
Non-controlling interest contributions |
|
210 |
|
|
|
72 |
|
|
Non-controlling interest distributions |
|
(213 |
) |
|
|
(2,652 |
) |
|
Other financing activities, net |
|
(11,606 |
) |
|
|
(14,943 |
) |
|
Net cash (used in) provided by financing activities |
|
(209,009 |
) |
|
|
401,966 |
|
|
Effect of currency exchange rate changes on cash and cash equivalents and restricted cash |
|
(49,015 |
) |
|
|
(52,154 |
) |
|
|
|
|
|
|||||
NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH |
|
(747,152 |
) |
|
|
(37,540 |
) |
|
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT BEGINNING OF PERIOD |
|
2,539,781 |
|
|
|
2,039,247 |
|
|
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT END OF PERIOD |
$ |
1,792,629 |
|
|
$ |
2,001,707 |
|
|
|
|
|
|
|||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: |
|
|
|
|||||
Cash paid during the period for: |
|
|
|
|||||
Interest |
$ |
12,826 |
|
|
$ |
15,080 |
|
|
Income tax payments, net |
$ |
88,649 |
|
|
$ |
38,508 |
|
_______________ |
||
(1) |
First-quarter 2022 operating cash flows include the negative impact of approximately $133 million associated with the timing of certain cash tax payments and refunds. |
Финансовые показатели, Не относящиеся к ОПБУ
Следующие меры считаются “финансовыми мерами, не относящимися к GAAP” в соответствии с руководящими принципами SEC:
(i) |
Net revenue |
|
(ii) |
Consolidated adjusted EBITDA |
|
(iii) |
Business line operating profit/loss |
|
(iv) |
Segment operating profit on revenue and net revenue margins |
|
(v) |
Free cash flow |
|
(vi) |
Net debt |
|
(vii) |
Core adjusted net income attributable to CBRE Group, Inc. stockholders (which we also refer to as “core adjusted net income”) |
|
(viii) |
Core EPS |
|
(ix) |
Core EBITDA |
Эти показатели не являются признанными измерениями в соответствии с общепринятыми принципами бухгалтерского учета США (GAAP). При анализе наших операционных показателей инвесторы должны использовать эти показатели в дополнение, а не в качестве альтернативы их наиболее непосредственно сопоставимому финансовому показателю, рассчитанному и представленному в соответствии с GAAP. Поскольку не все компании используют идентичные расчеты, наше представление этих показателей может быть несопоставимо с аналогичными показателями других компаний.
Наше руководство обычно использует эти финансовые показатели, не относящиеся к GAAP, для оценки операционной эффективности и для других дискреционных целей. Компания считает, что эти меры обеспечивают более полное понимание текущей деятельности, повышают сопоставимость текущих результатов с предыдущими периодами и могут быть полезны инвесторам для анализа наших финансовых показателей, поскольку они устраняют влияние отдельных сборов, которые могут затенять тенденции в основных показателях нашего бизнеса. Компания также использует некоторые из этих мер и считает, что они полезны для инвесторов, для целей, описанных ниже.
Что касается чистой выручки, то чистая выручка представляет собой валовую выручку за вычетом затрат, в основном связанных с работой поставщиков по субподряду, выполняемой для клиентов. Мы считаем, что инвесторы могут счесть эту меру полезной для анализа общих финансовых показателей компании, поскольку она исключает затраты, возмещаемые клиентами, которые, как правило, не имеют маржи, и, как таковая, обеспечивает большую наглядность основных показателей нашего бизнеса. До 2021 года компания использовала комиссионные доходы для анализа общих финансовых показателей. Комиссионные доходы исключали дополнительные возмещаемые расходы, в первую очередь связанные с сотрудниками, преданными клиентам, некоторые из которых включали минимальную маржу.
Что касается консолидированной скорректированной EBITDA, операционной прибыли по бизнес-направлениям и операционной прибыли сегмента от выручки и чистой прибыли, компания считает, что инвесторы могут счесть эти показатели полезными при оценке наших операционных показателей по сравнению с показателями других компаний в нашей отрасли, поскольку их расчеты, как правило, исключают бухгалтерские последствия приобретений, которые могли бы включают расходы на обесценение гудвила и нематериальных активов, созданных в результате приобретений, а в случае консолидированной скорректированной EBITDA, операционной прибыли по бизнесу и операционной прибыли сегмента по выручке и чистой прибыли, влияние финансирования и налога на прибыль, а также влияние капитальных затрат на бухгалтерский учет. Все эти показатели могут отличаться для разных компаний по причинам, не связанным с общими операционными показателями. В случае консолидированной скорректированной EBITDA этот показатель не предназначен для измерения свободного денежного потока для дискреционного использования нашим руководством, поскольку он не учитывает потребности в денежных средствах, такие как платежи по налогам и обслуживанию долга. Консолидированный скорректированный показатель EBITDA, рассчитанный здесь, также может отличаться от сумм, рассчитанных в соответствии с аналогичными определениями в наших кредитных линиях и долговых инструментах, которые дополнительно корректируются для отражения определенных других денежных и неденежных расходов и используются нами для определения соблюдения финансовых условий и нашей способности участвовать в определенных виды деятельности, такие как привлечение дополнительных долгов. Компания также использует консолидированную скорректированную EBITDA, операционную прибыль сегмента и базовую прибыль на акцию в качестве важных компонентов при оценке наших операционных показателей в рамках наших программ поощрения и компенсации сотрудников.
Что касается свободного денежного потока, компания считает, что инвесторы могут счесть эту меру полезной для анализа денежного потока, полученного от операций, после учета оттока денежных средств для поддержки операций и капитальных затрат. Что касается чистых денежных средств, компания считает, что инвесторы используют этот показатель при расчете коэффициента чистого кредитного плеча компании.
Что касается базовой EBITDA, базовой прибыли на акцию и базовой скорректированной чистой прибыли, компания считает, что инвесторы могут счесть эти показатели полезными для анализа основных показателей операционной деятельности без влияния стратегических непрофильных инвестиций в акционерный капитал (Altus Power Inc. и венчурные инвестиции), которые напрямую не связаны с нашими бизнес-сегментами. Они могут быть волатильными и часто носят безналичный характер.
Базовая скорректированная чистая прибыль, относящаяся к акционерам CBRE Group, Inc. (или базовая скорректированная чистая прибыль), и базовая прибыль на акцию рассчитываются следующим образом (в тысячах, за исключением данных на акцию и на акцию):
|
|
Three Months Ended March 31, |
||||||
|
|
2022 |
|
2021 |
||||
|
|
|
|
|||||
Net income attributable to CBRE Group, Inc. |
$ |
392,297 |
|
|
$ |
266,202 |
|
|
|
|
|
|
|||||
Plus / minus: |
|
|
|
|||||
Non-cash depreciation and amortization expense related to certain assets attributable to acquisitions |
|
41,048 |
|
|
|
18,430 |
|
|
Integration and other costs related to acquisitions |
|
8,121 |
|
|
|
— |
|
|
Carried interest incentive compensation expense to align with the timing of associated revenue |
|
22,856 |
|
|
|
15,332 |
|
|
Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period |
|
(1,696 |
) |
|
|
1,099 |
|
|
Costs incurred related to legal entity restructuring |
|
1,676 |
|
|
|
— |
|
|
Asset impairments (1) |
|
10,351 |
|
|
|
— |
|
|
Net fair value adjustments on strategic non-core investments |
|
136,364 |
|
|
|
(26,132 |
) |
|
Impact of adjustments on non-controlling interest |
|
(9,063 |
) |
|
|
— |
|
|
Tax impact of adjusted items, tax benefit attributable to legal entity restructuring, and strategic non-core above |
|
(132,718 |
) |
|
|
(339 |
) |
|
|
|
|
|
|||||
Core net income attributable to CBRE Group, Inc., as adjusted |
$ |
469,236 |
|
|
$ |
274,592 |
|
|
|
|
|
|
|||||
Core diluted income per share attributable to CBRE Group, Inc., as adjusted |
$ |
1.39 |
|
|
$ |
0.81 |
|
|
|
|
|
|
|||||
Weighted average shares outstanding for diluted income per share |
|
337,140,325 |
|
|
|
339,580,504 |
|
Консолидированная скорректированная EBITDA рассчитывается следующим образом (в тысячах, итоговые значения могут не суммироваться из-за округления):
|
Three Months Ended March 31, |
||||||
|
2022 |
|
2021 |
||||
|
|
|
|
||||
Net income attributable to CBRE Group, Inc. |
$ |
392,297 |
|
|
$ |
266,202 |
|
Net income attributable to non-controlling interests (2) |
|
3,974 |
|
|
|
2,775 |
|
Net income |
|
396,271 |
|
|
|
268,977 |
|
|
|
|
|
||||
Add: |
|
|
|
||||
Depreciation and amortization |
|
149,032 |
|
|
|
122,078 |
|
Asset impairments (1) |
|
10,351 |
|
|
|
— |
|
Interest expense, net of interest income |
|
12,826 |
|
|
|
10,106 |
|
(Benefit from) provision for income taxes |
|
(3,738 |
) |
|
|
76,327 |
|
Integration and other costs related to acquisitions |
|
8,121 |
|
|
|
— |
|
Carried interest incentive compensation expense to align with the timing of associated revenue |
|
22,856 |
|
|
|
15,332 |
|
Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period |
|
(1,696 |
) |
|
|
1,099 |
|
Costs incurred related to legal entity restructuring |
|
1,676 |
|
|
|
— |
|
Consolidated adjusted EBITDA |
$ |
595,699 |
|
|
$ |
493,919 |
|
|
|
|
|
||||
Adjusted EBITDA attributable to non-controlling interests (2) |
$ |
18,500 |
|
|
$ |
2,775 |
|
Adjusted EBITDA attributable to CBRE Group, Inc. (2) |
$ |
577,199 |
|
|
$ |
491,144 |
_______________ |
||
(1) |
Represents impairment charges recorded due to the company exiting its Advisory services business in Russia. |
|
(2) |
In conjunction with the acquisition of 60% interest in Turner & Townsend in the fourth quarter of 2021, we modified our definition of Adjusted EBITDA and to be inclusive of net income attributable to non-controlling interests and have recast prior periods to conform to this definition. |
Базовая EBITDA рассчитывается следующим образом (в тысячах):
|
Three Months Ended March 31, |
||||||
|
2022 |
|
2021 |
||||
|
|
|
|
||||
Consolidated adjusted EBITDA |
$ |
595,699 |
|
|
$ |
493,919 |
|
Less: net fair value adjustments on strategic non-core investments |
$ |
(136,364 |
) |
|
$ |
26,132 |
|
Core EBITDA |
$ |
732,063 |
|
|
$ |
467,787 |
Консолидированная скорректированная EBITDA за последние двенадцать месяцев, закончившихся 31 марта 2022 года, рассчитывается следующим образом (в тысячах):
|
Trailing
Twelve Months Ended
|
|||
|
|
|||
Net income attributable to CBRE Group, Inc. |
$ |
1,962,669 |
|
|
Net income attributable to non-controlling interests |
|
6,540 |
|
|
Net income |
|
1,969,209 |
|
|
|
|
|||
Add: |
|
|||
Depreciation and amortization |
|
552,825 |
|
|
Asset impairments |
|
10,351 |
|
|
Interest expense, net of interest income |
|
53,072 |
|
|
Provision for income taxes |
|
487,441 |
|
|
Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period |
|
(8,520 |
) |
|
Costs incurred related to legal entity restructuring |
|
1,676 |
|
|
Integration and other costs related to acquisitions |
|
52,673 |
|
|
Carried interest incentive compensation expense to align with the timing of associated revenue |
|
57,465 |
|
|
|
|
|||
Consolidated adjusted EBITDA |
$ |
3,176,192 |
|
Выручка включает в себя возмещаемые клиентом промежуточные расходы, в основном связанные с сотрудниками, которые занимаются обслуживанием клиентских объектов, и работой поставщиков по субподряду, выполняемой для клиентов. Возмещение расходов, связанных с работой поставщиков по субподряду, как правило, не имеет маржи и исключается из чистой выручки. Выверки приведены ниже (в тысячах долларов США):
|
|
Three Months Ended March 31, |
||||
|
|
2022 |
|
2021 |
||
Property Management Revenue |
|
|
|
|||
Revenue |
$ |
455,872 |
|
$ |
427,188 |
|
Less: Pass through costs also recognized as revenue |
|
17,778 |
|
|
18,619 |
|
Net revenue |
$ |
438,094 |
|
$ |
408,569 |
|
Three Months Ended March 31, |
|||||
|
2022 |
|
2021 |
|||
Facilities Management Revenue |
|
|
|
|||
Revenue |
$ |
3,800,688 |
|
$ |
3,479,500 |
|
Less: Pass through costs also recognized as revenue |
|
2,558,159 |
|
|
2,323,011 |
|
Net revenue |
$ |
1,242,529 |
|
$ |
1,156,489 |
|
Three Months Ended March 31, 2022 |
|||||||||||
|
Project Management
|
|
Turner & Townsend |
|
Total
|
|||||||
Project Management Revenue |
|
|
|
|
|
|||||||
Revenue |
$ |
692,801 |
|
|
$ |
312,128 |
|
|
$ |
1,004,929 |
|
|
Less: Pass through costs also recognized as revenue |
|
(345,751 |
) |
|
|
(35,217 |
) |
|
|
(380,968 |
) |
|
Net revenue |
$ |
347,050 |
|
|
$ |
276,911 |
|
|
$ |
623,961 |
|
|
Three Months Ended March 31, 2021 |
||||||||||
|
Project Management
|
|
Turner & Townsend |
|
Total
|
||||||
Project Management Revenue |
|
|
|
|
|
||||||
Revenue |
$ |
546,382 |
|
|
$ |
— |
|
$ |
546,382 |
|
|
Less: Pass through costs also recognized as revenue |
|
(238,265 |
) |
|
|
— |
|
|
(238,265 |
) |
|
Net revenue |
$ |
308,117 |
|
|
$ |
— |
|
$ |
308,117 |
|
Ниже представлена сверка операционной прибыльности бизнес-направления REI с операционной прибылью сегмента REI (в тысячах):
|
Three Months Ended March 31, |
|||||||
Real Estate Investments |
2022 |
|
2021 |
|||||
Investment management operating profit |
$ |
61,293 |
|
|
$ |
70,161 |
|
|
Global real estate development operating profit |
|
106,705 |
|
|
|
9,938 |
|
|
Hana and segment overhead operating loss |
|
(946 |
) |
|
|
(17,032 |
) |
|
Real estate investments segment operating profit |
$ |
167,052 |
|
|
$ |
63,067 |
|