Colliers Reports Strong Second Quarter Results

Toronto, Ontario, CANADA


Investment Management continues to scale, further increasing recurring earnings

Second quarter operating highlights:

 Three months ended Six months ended
 June 30 June 30
(in millions of US$, except EPS) 2022  2021  2022  2021
            
Revenues$1,127.8 $946.0 $2,128.8 $1,720.9
Adjusted EBITDA (note 1) 161.3  136.6  282.8  228.7
Adjusted EPS (note 2) 1.84  1.58  3.28  2.64
            
GAAP operating earnings 103.9  (385.8)*  144.7  (345.8)*
GAAP diluted EPS 0.67  (10.53)*  0.26  (10.80)*
* Includes $471.9 million settlement of Long-Term Incentive Arrangement with the Company's Chairman & CEO.

TORONTO, Aug. 03, 2022 (GLOBE NEWSWIRE) -- Colliers International Group Inc. (NASDAQ and TSX: CIGI) (“Colliers” or the “Company”) today announced operating and financial results for the second quarter ended June 30, 2022. All amounts are in US dollars.

For the quarter ended June 30, 2022, revenues were $1.13 billion, up 19% (23% in local currency), adjusted EBITDA (note 1) was $161.3 million, up 18% (21% in local currency) and adjusted EPS (note 2) was $1.84, up 16% versus the prior year period. Second quarter adjusted EPS would have been approximately $0.05 higher excluding foreign exchange impacts. GAAP operating earnings were $103.9 million. Prior year GAAP operating loss of $385.8 million included a $471.9 million settlement of the Long-Term Incentive Arrangement (“LTIA”) with the Company’s Chairman & CEO which was approved by 95% of disinterested shareholders. GAAP diluted net earnings per share were $0.67 versus diluted net loss of $10.53 in the prior year quarter. Second quarter GAAP EPS would have been approximately $0.05 higher excluding changes in foreign exchange rates.

For the six months ended June 30, 2022, revenues were $2.13 billion, up 24% (27% in local currency), adjusted EBITDA (note 1) was $282.8 million, up 24% (26% in local currency) and adjusted EPS (note 2) was $3.28, up 24% versus prior year. Six months ended June 30, 2022 adjusted EPS would have been approximately $0.07 higher excluding foreign exchange impacts. The GAAP operating earnings were $144.7 million and included $27.0 million loss on disposal of the Company’s operations in Russia. Prior year GAAP operating loss of $345.8 million included the settlement of the LTIA. The GAAP earnings per share were $0.26 as compared to diluted loss per share of $10.80. Year to date GAAP EPS would have been approximately $0.08 higher excluding changes in foreign exchange rates.

“Colliers reported strong second quarter results with continued solid revenue growth across all service lines,” said Jay S. Hennick, Global Chairman & CEO of Colliers.

“During the quarter, we also continued to grow our Investment Management segment in both size and scale furthering our goal of becoming a major player in the rapidly growing alternative private capital industry. We completed two acquisitions and a third after quarter end. Then, in late June, we announced the addition of Versus Capital, a highly successful alternative real asset manager in the US with strong private wealth distribution capabilities. Once completed, Colliers will have more than $85 billion in assets under management (“AUM”).“

“Investment Management now comprises about 30% of Colliers’ pro forma annualized adjusted EBITDA and the business compares very favorably with other public peers in the investment management industry. Our revenues are predominately from recurring management fees, about 90% of our investment funds are perpetual or long-dated strategies – defined as 10 years or more, and 70% are in rapidly growing sectors like alternatives and infrastructure. Most importantly, each of our platforms has a long history of delivering top-tier performance for investors through all investment cycles. Over the past 6 years, Colliers has built an impressive Investment Management business and we continue to see great potential in the years to come.”

“Separately, during the quarter, we added a building consultancy and project management leader in the UK, enhancing our service capabilities in Europe and continuing the growth of our Outsourcing & Advisory segment.”

“Overall, Colliers continues to transform into a more resilient, global and diversified services company with 55% of our pro forma earnings coming from recurring revenue streams and the balance from essential advisory services. Based on acquisitions already completed or announced, we expect 2022 to be a record year of capital deployment, with more than $1 billion invested.“

“With our strong global brand and operating platform, proven track record of more than 27 years, balanced and diversified business model, unique enterprising culture and significant inside ownership, we expect to continue delivering excellent returns for shareholders for many years to come,” he concluded.

About Colliers
Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 63 countries, our 17,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. For more than 27 years, our experienced leadership with significant inside ownership has delivered compound annual investment returns of 20% for shareholders. With annual revenues of $4.5 billion and $81 billion of assets under management, Colliers maximizes the potential of property and real assets to accelerate the success of our clients, our investors and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn.

Consolidated Revenues by Line of Service

   Three months ended   Six months ended  
(in thousands of US$)  June 30ChangeChange June 30ChangeChange
(LC = local currency)  2022 2021in US$ %in LC% 2022 2021in US$ %in LC%
                  
Outsourcing & Advisory $475,865 $388,66122%27% $890,410 $728,77722%26%
Investment Management(1)  75,127  50,47749%50%  161,504  95,10470%71%
Leasing  277,396  241,25715%18%  514,668  420,91722%25%
Capital Markets  299,458  265,59913%16%  562,176  476,11018%21%
Total revenues  $1,127,846 $945,99419%23% $2,128,758 $1,720,90824%27%
(1) Investment Management local currency revenues, excluding pass-through carried interest, were up 45% and 42% for the three and six months ended June 30, 2022, respectively.

Consolidated revenues for the second quarter increased 23% on a local currency basis with all service lines up, led by Investment Management and Outsourcing & Advisory. Consolidated internal revenues measured in local currencies were up 15% (note 3) versus the prior year quarter.

For the six months ended June 30, 2022, consolidated revenues increased 27% on a local currency basis. Consolidated internal revenues measured in local currencies were up 21% (note 3).

Segmented Second Quarter Results
Revenues in the Americas region totalled $740.7 million for the second quarter, up 27% (28% in local currency) versus $582.8 million in the prior year quarter. Outsourcing & Advisory revenues were up sharply, driven by Engineering & Design (including recent acquisitions). Capital Markets growth was robust, particularly in industrial and land sales, partially offset by a reduction in debt origination activity. Adjusted EBITDA was $101.6 million, up 29% (30% in local currency) over the prior year quarter and included an $11.7 million gain on the termination of a lease, offset by (i) higher discretionary and variable costs as well as (ii) changes in revenue mix with a reduction in higher-margin debt origination. GAAP operating earnings were $81.1 million, relative to $63.2 million in the prior year quarter.

Revenues in the EMEA region totalled $169.3 million for the second quarter, up 7% (20% in local currency) compared to $158.6 million in the prior year quarter. Revenue growth was led by Outsourcing & Advisory (including recent acquisition). Leasing activity was up, however, Capital Markets revenues were impacted by geopolitical uncertainty in the region. Adjusted EBITDA was $14.4 million, down 30% (21% in local currency) relative to the prior year and was impacted by (i) lower Capital Markets revenues and (ii) higher discretionary and variable costs. GAAP operating earnings were $4.2 million, versus operating earnings of $14.4 million in the prior year quarter.

Revenues in the Asia Pacific region totalled $142.6 million for the second quarter compared to $154.0 million in the prior year quarter, down 7% (down 1% in local currency). Revenues were impacted by continued COVID-19 lockdowns in several Asian markets which extended until late in the quarter. Adjusted EBITDA was $19.5 million, down 5% (up 2% in local currency) from $20.7 million in the prior year quarter. GAAP operating earnings was $17.6 million, versus $16.7 million in the prior year quarter.

Investment Management revenues for the second quarter were $75.1 million compared to $50.5 million in the prior year quarter, up 49% (48% in local currency). Passthrough revenue from historical carried interest represented $1.9 million for the quarter versus nil in the prior year quarter. Excluding the impact of carried interest, revenue was up 45% (45% in local currency) driven by (i) management fee growth from increased assets under management and (ii) two acquisitions completed during the quarter. Adjusted EBITDA was $29.2 million, up 37% (36% in local currency) over the prior year quarter. GAAP operating earnings were $19.2 million in the quarter, versus $14.2 million in the prior year quarter. Assets under management were $68.7 billion as of June 30, 2022, up 54% from $44.5 billion on June 30, 2021. Including Rockwood Capital, completed on July 6, 2022, assets under management are now $81 billion, of which $70 billion are either perpetual or long-dated strategies.

Unallocated global corporate costs as reported in Adjusted EBITDA were $3.4 million in the second quarter, relative to $5.0 million in the prior year quarter. The corporate GAAP operating loss for the quarter was $18.2 million relative to a loss of $494.3 million in the second quarter of 2021, with the prior year period impacted by (i) the settlement of the LTIA and (ii) contingent acquisition consideration expense related to acquisitions.

Outlook for 2022
The Company is increasing its outlook for full year 2022 to reflect the impact of recent acquisitions and operating results year to date. The financial outlook is based on the Company’s best available information as of the date of this press release, and remains subject to change based on, but not limited to, numerous macroeconomic, health, social, geopolitical (including escalation of hostilities, outbreak of war, elections, disruption of supply chains) and related factors.

MeasureUpdatedPrevious
Revenue growthLow double digit revenue growth:
  • High-single digit internal growth
  • Balance from acquisitions (including Rockwood, Versus and PEAKURBAN)
Low double digit revenue growth:
  • Mid to high-single digit internal growth
  • Balance from acquisitions
AEBITDA MarginUp 60 bps – 100 bpsUp 40 bps – 80 bps
Consolidated income tax rate27%-29%25%-27%
NCI share of earnings20%-22%18%-20%
AEPS growthLow-twentiesHigh-teens

Conference Call
Colliers will be holding a conference call on Wednesday, August 3, 2022 at 11:00 a.m. Eastern Time to discuss the quarter’s results. The call, as well as a supplemental slide presentation, will be simultaneously web cast and can be accessed live or after the call at corporate.colliers.com in the Events section.

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

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

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

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

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

 Three months ended Six months ended
 June 30 June 30
(in thousands of US$)2022  2021  2022  2021 
            
Net earnings (loss)$66,731  $(412,601) $88,048  $(387,794)
Income tax 28,610   20,872   44,937   29,719 
Other income, including equity earnings from non-consolidated investments (1,062)  (1,964)  (4,190)  (3,946)
Interest expense, net 9,571   7,916   15,889   16,200 
Operating earnings (loss) 103,850   (385,777)  144,684   (345,821)
Settlement of LTIA -   471,928   -   471,928 
Loss on disposal of operations 950   -   27,040   - 
Depreciation and amortization 44,097   34,574   80,737   72,351 
Gains attributable to MSRs (2,526)  (5,841)  (7,823)  (14,916)
Equity earnings from non-consolidated investments 906   1,732   4,066   3,138 
Acquisition-related items 9,365   16,695   24,448   35,542 
Restructuring costs 181   650   271   943 
Stock-based compensation expense 4,490   2,597   9,351   5,522 
Adjusted EBITDA$161,313  $136,558  $282,774  $228,687 

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

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

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

 Three months ended Six months ended
 June 30 June 30
(in thousands of US$)2022  2021  2022  2021 
            
Net earnings (loss)$66,731  $(412,601) $88,048  $(387,794)
Non-controlling interest share of earnings (11,806)  (11,745)  (20,322)  (19,525)
Interest on Convertible Notes 2,300   2,300   4,600   4,600 
Settlement of LTIA -   471,928   -   471,928 
Loss on disposal of operations 950   -   27,040   - 
Amortization of intangible assets 32,279   23,533   56,870   50,871 
Gains attributable to MSRs (2,526)  (5,841)  (7,823)  (14,916)
Acquisition-related items 9,365   16,695   24,448   35,542 
Restructuring costs 181   650   271   943 
Stock-based compensation expense 4,490   2,597   9,351   5,522 
Income tax on adjustments (9,891)  (8,517)  (16,310)  (18,183)
Non-controlling interest on adjustments (4,269)  (3,460)  (7,939)  (6,795)
Adjusted net earnings$87,804  $75,539  $158,234  $122,193 
            
 Three months ended Six months ended
 June 30 June 30
(in US$)2022  2021  2022  2021 
            
Diluted net earnings (loss) per common share(1)$0.64  $(9.53) $0.24  $(9.75)
Interest on Convertible Notes, net of tax 0.04   0.04   0.07   0.07 
Non-controlling interest redemption increment 0.51   0.67   1.16   0.96 
Settlement of LTIA -   9.86   -   10.19 
Loss on disposal of operations 0.02   -   0.56   - 
Amortization expense, net of tax 0.41   0.29   0.71   0.66 
Gains attributable to MSRs, net of tax (0.03)  (0.07)  (0.09)  (0.18)
Acquisition-related items 0.18   0.26   0.45   0.56 
Restructuring costs, net of tax -   0.01   -   0.01 
Stock-based compensation expense, net of tax 0.07   0.05   0.18   0.12 
Adjusted EPS$1.84  $1.58  $3.28  $2.64 
            
Diluted weighted average shares for Adjusted EPS (thousands) 47,804   47,846   48,302   46,303 
(1)Amounts shown reflect the "if-converted" method's dilutive impact on the adjusted EPS calculation for the three  and six months ended June 30, 2022 and 2021.

3. Reconciliation of net cash flow from operations to free cash flow:

Free cash flow is defined as net cash flow from operating activities plus contingent acquisition consideration paid, plus the cash portion of the LTIA settlement, less purchases of fixed assets, plus cash collections on AR Facility deferred purchase price. We use free cash flow as a measure to evaluate and monitor operating performance as well as our ability to service debt, fund acquisitions and pay of dividends to shareholders and distributions to non-controlling interests. We present free cash flow as a supplemental measure because we believe this measure is a financial metric used by many investors to compare valuation and liquidity measures across companies, especially in the services industry. This measure is not a recognized measure of financial performance under GAAP in the United States, and should not be considered as a substitute for operating earnings, net earnings or cash flow from operating activities, as determined in accordance with GAAP. Our method of calculating free cash flow may differ from other issuers and accordingly, this measure may not be comparable to measures used by other issuers. A reconciliation of net cash flow from operating activities to free cash flow appears below.

 Three months ended Six months ended
 June 30 June 30
(in thousands of US$)2022  2021  2022  2021 
            
Net cash provided by (used in) operating activities$32,399  $56,687  $(248,310) $18,548 
Contingent acquisition consideration paid 1,257   2,997   60,810   10,472 
Settlement of LTIA (cash portion) -   96,186   -   96,186 
Purchase of fixed assets (13,581)  (10,510)  (23,416)  (32,603)
Cash collections on AR Facility deferred purchase price 90,101   11,824   256,429   22,732 
Free cash flow$110,176  $157,184  $45,513  $115,335 

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

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

5. Assets under management

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

6. Adjusted EBITDA from recurring revenue percentage

Adjusted EBITDA from recurring revenue percentage is computed on a trailing twelve-month basis and represents the proportion of adjusted EBITDA (note 1) that is derived from Outsourcing & Advisory and Investment Management service lines. Both these service lines represent medium to long-term duration revenue streams that are either contractual or repeatable in nature. We report this metric on a pro forma basis, incorporating the expected full year impact of business acquisitions and dispositions.

COLLIERS INTERNATIONAL GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
(in thousands of US$, except per share amounts)
     Three months  Six months
     ended June 30  ended June 30
(unaudited)  2022   2021   2022   2021 
               
Revenues $1,127,846  $945,994  $2,128,758  $1,720,908 
               
Cost of revenues  703,302   576,652   1,334,855   1,044,382 
Selling, general and administrative expenses  266,282   231,922   516,994   442,526 
Depreciation  11,818   11,041   23,867   21,480 
Amortization of intangible assets  32,279   23,533   56,870   50,871 
Acquisition-related items (1)  9,365   16,695   24,448   35,542 
Loss on disposal of operations  950   -   27,040   - 
Settlement of long-term incentive arrangement (2)  -   471,928   -   471,928 
Operating earnings (loss)  103,850   (385,777)  144,684   (345,821)
Interest expense, net  9,571   7,916   15,889   16,200 
Equity earnings from unconsolidated investments  (906)  (1,732)  (4,066)  (3,138)
Other (income) expense  (156)  (232)  (124)  (808)
Earnings (loss) before income tax  95,341   (391,729)  132,985   (358,075)
Income tax  28,610   20,872   44,937   29,719 
Net earnings (loss)  66,731   (412,601)  88,048   (387,794)
Non-controlling interest share of earnings  11,806   11,745   20,322   19,525 
Non-controlling interest redemption increment  24,564   31,771   56,005   44,311 
Net earnings (loss) attributable to Company $30,361  $(456,117) $11,721  $(451,630)
               
Net earnings (loss) per common share            
               
 Basic $0.70  $(10.53) $0.27  $(10.80)
               
 Diluted (3) $0.67  $(10.53) $0.26  $(10.80)
               
Adjusted EPS (4) $1.84  $1.58  $3.28  $2.64 
               
Weighted average common shares (thousands)            
  Basic  43,336   43,329   43,698   41,801 
  Diluted  47,804   43,329   44,328   41,801 

Notes to Condensed Consolidated Statements of Earnings
(1)  Acquisition-related items include contingent acquisition consideration fair value adjustments, contingent acquisition consideration-related compensation expense and transaction costs.
(2)  Settlement of Long-Term Incentive Arrangement with the Company’s Chairman & CEO as approved by 95% of the Company’s disinterested shareholders. The settlement resulted in a cash payment of $96,186 and the issuance of 3,572,858 Subordinate Voting Shares on April 16, 2021.
(3)  Diluted EPS is calculated using the “if-converted” method of calculating earnings per share in relation to the Convertible Notes, which were issued on May 19, 2020. As such, the interest (net of tax) on the Convertible Notes is added to the numerator and the additional shares issuable on conversion of the Convertible Notes are added to the denominator of the earnings per share calculation to determine if an assumed conversion is more dilutive than no assumption of conversion. The “if-converted” method is used if the impact of the assumed conversion is dilutive. The “if-converted” method is dilutive for the three months ended June 30, 2022. The “if-converted” method is anti-dilutive for the three-month period ended June 30, 2021 and six-month periods ended June 30, 2022 and 2021.
(4)  See definition and reconciliation above.

COLLIERS INTERNATIONAL GROUP INC.        
CONDENSED CONSOLIDATED BALANCE SHEETS        
(in thousands of US$)   
         
          
  June 30, December 31, June 30,
(unaudited)2022 2021 2021
          
Assets        
Cash and cash equivalents$171,312 $396,745 $147,515
Restricted cash (1) 35,142  28,526  30,052
Accounts receivable and contract assets 609,196  573,710  456,217
Warehouse receivables (2) 33,595  174,717  62,838
Prepaids and other assets 264,690  353,220  205,294
Real estate assets held for sale 199,461  44,089  -
 Current assets 1,313,396  1,571,007  901,916
Other non-current assets 140,677  120,071  100,526
Fixed assets 144,346  144,755  139,598
Operating lease right-of-use assets 316,731  316,517  319,768
Deferred tax assets, net 68,429  68,502  55,167
Goodwill and intangible assets 2,198,567  1,652,878  1,663,937
 Total assets$4,182,146 $3,873,730 $3,180,912
          
Liabilities and shareholders' equity        
Accounts payable and accrued liabilities$913,059 $1,082,774 $736,393
Other current liabilities 96,272  186,089  131,336
Long-term debt - current 4,808  1,458  2,142
Warehouse credit facilities (2) 27,208  162,911  55,566
Operating lease liabilities - current 78,138  80,928  81,144
Liabilities related to real estate assets held for sale 109,666  23,095  -
 Current liabilities 1,229,151  1,537,255  1,006,581
Long-term debt - non-current 1,035,178  529,596  537,956
Operating lease liabilities - non-current 298,121  296,633  298,668
Other liabilities 129,094  120,489  103,658
Deferred tax liabilities, net 55,093  42,371  38,729
Convertible notes 225,866  225,214  224,578
Redeemable non-controlling interests 720,685  536,903  448,271
Shareholders' equity 488,958  585,269  522,471
 Total liabilities and equity$4,182,146 $3,873,730 $3,180,912
          
Supplemental balance sheet information        
Total debt (3)$1,039,986 $531,054 $540,098
Total debt, net of cash and cash equivalents (3) 868,674  134,309  392,583
Net debt / pro forma adjusted EBITDA ratio (4) 1.4  0.3  0.9

Notes to Condensed Consolidated Balance Sheets

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

COLLIERS INTERNATIONAL GROUP INC.            
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS       
(in thousands of US$)
    Three months ended  Six months ended
    June 30  June 30
(unaudited)  2022   2021   2022   2021 
              
Cash provided by (used in)            
              
Operating activities            
Net earnings (loss) $66,731  $(412,601) $88,048  $(387,794)
Items not affecting cash:            
 Depreciation and amortization  44,097   34,574   80,737   72,351 
 Settlement of long-term incentive arrangement  -   375,742   -   375,742 
 Loss on disposal of operations  950   -   27,040   - 
 Gains attributable to mortgage servicing rights  (2,526)  (5,841)  (7,823)  (14,916)
 Gains attributable to the fair value of loan            
   premiums and origination fees  (4,272)  (10,705)  (11,554)  (22,283)
 Deferred income tax  (16)  (13,073)  (11,193)  (22,504)
 Other  22,842   19,394   40,629   61,285 
    127,806   (12,510)  205,884   61,881 
              
Increase in accounts receivable, prepaid            
 expenses and other assets  (165,922)  (55,446)  (337,927)  (79,233)
Increase (decrease) in accounts payable, accrued            
 expenses and other liabilities  (19,206)  14,331   (9,346)  1,779 
Increase (decrease) in accrued compensation  60,535   82,799   (208,235)  (1,677)
Contingent acquisition consideration paid  (1,257)  (2,997)  (60,810)  (10,472)
Mortgage origination activities, net  7,527   16,327   16,271   35,378 
Sales to AR Facility, net  22,916   14,183   145,853   10,892 
Net cash provided by (used in) operating activities  32,399   56,687   (248,310)  18,548 
              
Investing activities            
Acquisition of businesses, net of cash acquired  (328,120)  (366)  (380,598)  (4,207)
Purchases of fixed assets  (13,581)  (10,510)  (23,416)  (32,603)
Purchase of held for sale real estate assets  (117,042)  -   (117,042)  - 
Proceeds from sale of held for sale real estate assets  48,505   -   48,505   - 
Cash collections on AR Facility deferred purchase price  90,101   11,824   256,429   22,732 
Other investing activities  (10,682)  (9,696)  (31,647)  (20,789)
Net cash used in investing activities  (330,819)  (8,748)  (247,769)  (34,867)
              
Financing activities            
Increase in long-term debt, net  345,676   16,140   537,406   69,932 
Purchases of non-controlling interests, net  (7,595)  (13,707)  (33,557)  (21,840)
Dividends paid to common shareholders  -   -   (6,608)  (2,009)
Distributions paid to non-controlling interests  (26,628)  (21,305)  (41,554)  (35,228)
Repurchases of Subordinate Voting Shares  (53,681)  -   (126,366)  - 
Other financing activities  (4,329)  1,496   (34,053)  6,464 
Net cash provided by (used in) financing activities  253,443   (17,376)  295,268   17,319 
              
Effect of exchange rate changes on cash  (14,167)  888   (18,006)  (966)
              
Net change in cash and cash            
 equivalents and restricted cash  (59,144)  31,451   (218,817)  34 
Cash and cash equivalents and            
 restricted cash, beginning of period  265,598   146,116   425,271   177,533 
Cash and cash equivalents and            
 restricted cash, end of period $206,454  $177,567  $206,454  $177,567 


 

COLLIERS INTERNATIONAL GROUP INC.               
SEGMENTED RESULTS
(in thousands of US dollars)
                   
      Asia Investment    
(unaudited)Americas EMEA Pacific Management Corporate Consolidated
                   
Three months ended June 30                
                   
2022                 
 Revenues$740,711 $169,271  $142,604 $75,148 $112  $1,127,846 
 Adjusted EBITDA 101,573  14,367   19,543  29,199  (3,369)  161,313 
 Operating earnings (loss) 81,108  4,209   17,558  19,150  (18,175)  103,850 
                   
2021                 
 Revenues$582,769 $158,571  $154,018 $50,477 $159  $945,994 
 Adjusted EBITDA 78,923  20,640   20,677  21,330  (5,012)  136,558 
 Operating earnings (loss) 63,239  14,393   16,692  14,157  (494,258)  (385,777)
                   
                   
      Asia Investment    
 Americas EMEA Pacific Management Corporate Consolidated
                   
Six months ended June 30                
                   
2022                 
 Revenues$1,382,409 $322,596  $261,984 $161,525 $244  $2,128,758 
 Adjusted EBITDA 182,639  19,286   29,762  56,000  (4,913)  282,774 
 Operating earnings (loss) (1) 142,415  (26,572)  25,783  36,371  (33,313)  144,684 
                   
2021                 
 Revenues$1,058,546 $284,684  $282,269 $95,104 $305  $1,720,908 
 Adjusted EBITDA 135,849  25,144   36,195  39,075  (7,576)  228,687 
 Operating earnings (loss) 106,092  13,304   28,400  24,088  (517,705)  (345,821)

Notes to Segmented Results
(1)  Operating earnings (loss) include $27,040 loss on disposal of certain operations, primarily in EMEA.

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

Christian Mayer
Global Chief Financial Officer
(416) 960-9500