Colliers Reports Robust Second Quarter Results

Strong momentum prompts further increase to 2021 financial outlook

Toronto, Ontario, CANADA


Operating highlights:

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

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

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

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

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

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

Consolidated Revenues by Line of Service

 Three months ended   Six months ended  
(in thousands of US$)June 30ChangeChange June 30ChangeChange
(LC = local currency)2021 2020in US$ %in LC% 2021 2020in US$ %in LC%
                
Outsourcing & Advisory$388,661 $257,04451%43% $728,777 $534,33436%30%
Investment Management 50,477  41,38922%21%  95,104  87,2149%9%
Leasing 241,257  136,76876%69%  420,917  301,27840%35%
Capital Markets 265,599  115,005131%119%  476,110  258,00885%76%
Total revenues$945,994 $550,20672%64% $1,720,908 $1,180,83446%40%

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

4. Assets under management

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

COLLIERS INTERNATIONAL GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands of US$, except per share amounts)
   Three months  Six months
    ended June 30    ended June 30
(unaudited)
 

 
2021  
 

 
2020   
 
2021  
 

 
2020  
             
Revenues $945,994  $550,206  $1,720,908  $1,180,834 
             
Cost of revenues  576,652   355,347   1,044,382   771,705 
Selling, general and administrative expenses  231,922   150,612   442,526   318,704 
Depreciation   11,041   8,851   21,480   17,729 
Amortization of intangible assets  23,533   17,089   50,871   33,101 
Acquisition-related items (1)  16,695   3,784   35,542   6,534 
Settlement of long-term incentive arrangement  471,928   -   471,928   - 
Operating earnings  (385,777)  14,523   (345,821)  33,061 
Interest expense, net  7,916   6,179   16,200   13,763 
Equity earnings from unconsolidated investments  (1,732)  (414)  (3,138)  (969)
Other (income) loss  (232)  148   (808)  (1)
Earnings before income tax  (391,729)  8,610   (358,075)  20,268 
Income tax  20,872   2,127   29,719   7,326 
Net earnings  (412,601)  6,483   (387,794)  12,942 
Non-controlling interest share of earnings  11,745   4,265   19,525   7,642 
Non-controlling interest redemption increment   31,771   12,530   44,311   11,025 
Net earnings attributable to Company  $(456,117) $(10,312) $(451,630) $(5,725)
             
Net earnings per common share             
             
 

Basic
 $(10.53) $(0.26) $(10.80) $(0.14)
Diluted (2) $(10.53) $(0.26) $(10.80) $(0.14)
             
Adjusted EPS (3) $1.58  $0.70  $2.64  $1.25 
             
Weighted average common shares (thousands)            
Basic  43,329   39,930   41,801   39,902 
Diluted  43,329   39,930   41,801   39,902 

Notes to Condensed Consolidated Statements of Earnings

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


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

Note to Condensed Consolidated Balance Sheets

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


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


 

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


 

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

Christian Mayer
Chief Financial Officer
(416) 960-9500