Operating highlights:
        Three months ended  
      March 31    
(in millions of US$, except Adjusted EPS)     2016   2015    
                   
Revenues     $ 376.1   $ 335.8      
Adjusted EBITDA (note 1)       22.2     14.6      
Adjusted EPS (note 2)       0.19     0.10  
                 

TORONTO, April 26, 2016 (GLOBE NEWSWIRE) -- Colliers International Group Inc. (NASDAQ:CIGI) (TSX:CIG) today reported operating and financial results for its first quarter ended March 31, 2016. All amounts are in US dollars.

Revenues for the first quarter were $376.1 million, a 12% increase (17% in local currency) relative to the same quarter in the prior year, Adjusted EBITDA (note 1) was $22.2 million, up 52% (60% in local currency) and Adjusted EPS (note 2) was $0.19, a 90% increase versus the prior year quarter. GAAP EPS from continuing operations was a loss of $0.19 per share for the quarter, versus $0.22 per share for the same quarter a year ago. First quarter adjusted EPS and GAAP EPS would have been approximately $0.02 higher excluding foreign exchange impacts.

"Colliers reported strong results in the seasonally slower first quarter, with solid growth both internally and from acquisitions. Our revenue pipelines continue to reflect considerable activity across our various service lines, with generally stable conditions in most major markets," said Jay S. Hennick, Chairman and CEO of Colliers International. "During the first quarter, we completed another four strategic acquisitions, expanding our presence in Florida and strengthening our existing businesses in the UK, Netherlands and Canada. With our disciplined growth strategy, well established track record of success and strong balance sheet, Colliers International is better positioned than ever to continue building our global platform in the years to come," he concluded.

About Colliers International Group Inc. Colliers International Group Inc. (NASDAQ:CIGI) (TSX:CIG) is an industry leading global real estate services company with more than 16,000 skilled professionals operating in 66 countries. With an enterprising culture and significant employee ownership, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include strategic advice and execution for property sales, leasing and finance; global corporate solutions; property, facility and project management; workplace solutions; appraisal, valuation and tax consulting; customized research; and thought leadership consulting.

Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice that help clients accelerate their success. Colliers has been ranked among the top 100 outsourcing firms by the International Association of Outsourcing Professionals' Global Outsourcing for 11 consecutive years, more than any other real estate services firm.

For the latest news from Colliers, visit Colliers.com or follow us on Twitter: @Colliers and LinkedIn.

Consolidated Revenues by Line of Service
          Three months ended  
  (in thousands of US$)       March 31   Growth
  (LC = local currency)         2016   2015   in LC %
                       
  Outsourcing & Advisory       $ 159,818   $ 132,524   26 %
  Lease Brokerage         112,885     104,614   11 %
  Sales Brokerage         103,405     98,624   10 %
                       
  Total revenues         $ 376,108   $ 335,762   17 %
                           

Consolidated revenues for the first quarter grew 17% on a local currency basis, led by significant revenue increases in Outsourcing & Advisory services as a result of strong internal growth in workplace solutions, project management and property management. Consolidated internal revenue growth in local currencies was 7%. Outsourcing & Advisory services represented 42% of total revenues for the period, up from 39% in the prior year period.

Segmented Quarterly Results Americas region revenues totalled $210.5 million for the first quarter compared to $183.7 million in the prior year quarter, up 15% (18% on a local currency basis). Local currency revenue growth was comprised of 4% internal growth and 14% growth from recent acquisitions. Adjusted EBITDA was $21.6 million, up 62% from the prior year quarter as a result of operating leverage in Outsourcing & Advisory services and the favorable impact of acquisitions.

EMEA region revenues totalled $98.9 million for the first quarter compared to $81.7 million in the prior year quarter, up 21% (26% on a local currency basis). Local currency revenue growth was comprised of 19% internal growth and 7% growth from recent acquisitions. Internal growth was driven by (i) Outsourcing & Advisory services activity, particularly in France where several large project management assignments commenced in the quarter; such projects, which involve the supply and installation of materials resulting in lower margins than other revenue types and (ii) increased Sales Brokerage revenues in Germany. Adjusted EBITDA was a loss of $0.6 million, versus break-even in the prior year quarter, due to the timing of expenses as well as changes in revenue mix.

Asia Pacific region revenues totalled $66.4 million for the first quarter compared to $70.1 million in the prior year quarter, down 5% (up 2% on a local currency basis, entirely from internal growth with significant foreign exchange headwinds impacting results in the US dollar reporting currency). Adjusted EBITDA was $3.3 million versus $5.9 million in the prior year quarter, and was impacted by the reduction in revenue as well as changes in revenue mix.

Global corporate costs were $2.2 million in the first quarter, relative to $4.7 million in the prior year period, and were positively impacted by lower compensation costs due to reduced headcount and lower variable expenses.

Conference Call Colliers will be holding a conference call on Tuesday, April 26, 2016 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 www.colliers.com in the "Shareholders / Newsroom" 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 cap 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, Australian dollar, UK pound and Euro denominated revenues and expenses; 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 licensure, labour and employment laws and regulations, as well as the anti-corruption laws and trade sanctions; political conditions, including political instability and any outbreak or escalation of terrorism or hostilities and the impact thereof on our business; and changes in government laws and policies at the federal, state/provincial or local level that may adversely impact the business.

Additional information and factors are identified in the Company's Annual Information Form for the year ended December 31, 2015 under the heading "Risk Factors" (which factors are adopted herein and a copy of which can be obtained at www.sedar.com) and other periodic filings with Canadian and US securities regulators. 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 quarterly financial statements and MD&A to be made available on SEDAR at www.sedar.com.

Notes 1. Reconciliation of net earnings (loss) from continuing operations to adjusted EBITDA:

Adjusted EBITDA is defined as net earnings from continuing operations, adjusted to exclude: (i) income tax; (ii) other expense (income); (iii) interest expense; (iv) depreciation and amortization; (v) acquisition-related items; (vi) corporate costs allocated to spin-off and (vii) 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 from continuing operations 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 (loss) from continuing operations to adjusted EBITDA appears below.
         
        Three months ended
(in thousands of US$)     March 31
            2016   2015
                         
Net earnings from continuing operations             $   4,032     $   40  
Income tax                 3,071         (516 )
Other income, net                 (600 )       484  
Interest expense, net                 2,364         2,335  
Operating earnings                 8,867         2,343  
Depreciation and amortization                 11,034         8,591  
Acquisition-related items                 1,071         871  
Corporate costs allocated to spin-off                 -         1,283  
Stock-based compensation expense                 1,212         1,495  
Adjusted EBITDA             $   22,184     $   14,583  
                               

2. Reconciliation of net earnings (loss) from continuing operations and diluted net earnings (loss) per share from continuing operations to adjusted net earnings and adjusted earnings per share:

Adjusted earnings per share is defined as diluted net earnings (loss) per share from continuing operations, adjusted for the effect, after income tax, of: (i) the non-controlling interest redemption increment; (ii) amortization expense related to intangible assets recognized in connection with acquisitions; (iii) acquisition-related items; (iv) corporate costs allocated to spin-off and (v) 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 earnings per share 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 (loss) from continuing operations to adjusted net earnings and of diluted net earnings (loss) per share from continuing operations to adjusted earnings per share appears below.
         
        Three months ended
(in thousands of US$)     March 31
            2016   2015
                         
Net earnings from continuing operations             $   4,032     $   40  
Non-controlling interest share of earnings                 (2,414 )       (1,399 )
Amortization of intangible assets                 5,637         3,427  
Acquisition-related items                 1,071         871  
Corporate costs allocated to spin-off                 -         1,307  
Stock-based compensation expense                 1,212         1,495  
Income tax on adjustments                 (1,691 )       (2,008 )
Non-controlling interest on adjustments                 (502 )       (164 )
Adjusted net earnings             $   7,345     $   3,569  
                         
        Three months ended
(in US$)     March 31
            2016   2015
                         
Diluted net earnings (loss) per share from continuing operations             $   (0.19 )   $   0.22  
Non-controlling interest redemption increment                 0.23         (0.25 )
Amortization of intangible assets, net of tax                 0.09         0.06  
Acquisition-related items                 0.03         0.02  
Corporate costs allocated to spin-off, net of tax                 -         0.02  
Stock-based compensation expense, net of tax                 0.03         0.03  
Adjusted earnings per share             $   0.19     $   0.10  

COLLIERS INTERNATIONAL GROUP INC.
Condensed Consolidated Statements of Earnings (Loss)
(in thousands of US dollars, except per share amounts)
                Three months
                ended March 31
(unaudited)                   2016         2015  
                             
Revenues               $   376,108     $   335,762  
                                     
Cost of revenues                   236,867         208,121  
Selling, general and administrative expenses                   118,269         115,836  
Depreciation                   5,397         5,164  
Amortization of intangible assets                   5,637         3,427  
Acquisition-related items (1)                   1,071         871  
Operating earnings                   8,867         2,343  
Interest expense, net                   2,364         2,335  
Other (income) expense, net                   (600 )       484  
Earnings (loss) before income tax                   7,103         (476 )
Income tax expense (recovery)                   3,071         (516 )
Net earnings from continuing operations                   4,032         40  
Discontinued operations, net of income tax (2)                   -         (1,938 )
Net earnings (loss)                   4,032         (1,898 )
Non-controlling interest share of earnings                   2,414         1,399  
Non-controlling interest redemption increment                   8,814         (9,341 )
Net earnings (loss) attributable to Company               $   (7,196 )   $   6,044  
                                     
Net earnings (loss) per common share                                
  Basic                                
    Continuing operations               $   (0.19 )   $   0.22  
    Discontinued operations                   -         (0.05 )
                  $   (0.19 )   $   0.17  
                                     
  Diluted                                
    Continuing operations               $   (0.19 )   $   0.22  
    Discontinued operations                   -         (0.05 )
                  $   (0.19 )   $   0.17  
                                     
Adjusted earnings per share (3)               $   0.19     $   0.10  
                                     
Weighted average common shares (thousands)                                
    Basic                   38,558         35,871  
    Diluted                   38,825         36,263  
                                     

Notes to Condensed Consolidated Statements of Earnings (Loss)(1) Acquisition-related items include transaction costs, contingent acquisition consideration fair value adjustments, and contingent acquisition consideration-related compensation expense.(2) Discontinued operations is comprised of FirstService, which was spun off on June 1, 2015.(3) See definition and reconciliation above.
           
Condensed Consolidated Balance Sheets
(in thousands of US dollars)
           
             
(unaudited) March 31, 2016   December 31, 2015
             
Assets          
Cash and cash equivalents $ 107,468   $ 116,150
Accounts receivable   260,635     298,466
Prepaid expenses and other assets   101,702     81,363
  Current assets   469,805     495,979
Other non-current assets   31,398     23,209
Fixed assets   63,937     62,553
Deferred income tax   81,493     84,038
Goodwill and intangible assets   476,574     426,642
  Total assets $ 1,123,207   $ 1,092,421
             
             
Liabilities and shareholders' equity          
Accounts payable and accrued liabilities $ 381,455   $ 455,243
Other current liabilities   18,701     20,698
Long-term debt - current   2,763     3,200
  Current liabilities   402,919     479,141
Long-term debt - non-current   346,132     257,747
Other liabilities   56,108     48,034
Deferred income tax   19,373     18,414
Redeemable non-controlling interests   145,153     139,592
Shareholders' equity   153,522     149,493
  Total liabilities and equity $ 1,123,207   $ 1,092,421
             
             
Supplemental balance sheet information          
Total debt $ 348,895   $ 260,947
Total debt, net of cash   241,427     144,797
Net debt / pro forma adjusted EBITDA ratio   1.2     0.8

Consolidated Statements of Cash Flows              
(in thousands of US dollars)
              Three months ended
              March 31
(unaudited)                   2016         2015  
                           
Cash provided by (used in)                        
                           
Operating activities                        
Net earnings from continuing operations               $   4,032     $   40  
Items not affecting cash:                                
  Depreciation and amortization                   11,034         8,591  
  Deferred income tax                   657         (1,331 )
  Other                   1,329         70  
                      17,052         7,370  
                                   
Net changes from assets / liabilities                                
  Accounts receivable                   49,308         43,686  
  Payables and accruals                   (101,194 )       (126,242 )
  Other                   (8,306 )       (18,572 )
  Contingent acquisition consideration paid                   -         (1,032 )
Discontinued operations                   -         20,043  
Net cash used in operating activities                   (43,140 )       (74,747 )
                                   
Investing activities                                
Acquisition of businesses, net of cash acquired                   (36,575 )       (490 )
Purchases of fixed assets                   (4,187 )       (1,550 )
Other investing activities                   (6,142 )       (144 )
Discontinued operations                   -         (6,847 )
Net cash used in investing activities                   (46,904 )       (9,031 )
                                   
Financing activities                                
Increase in long-term debt, net                   86,467         53,123  
Sale of subsidiary shares to non-controlling interests, net                   620         1,384  
Dividends paid to common shareholders                   (1,541 )       (3,581 )
Distributions paid to non-controlling interests                   (5,116 )       (5,641 )
Other financing activities                   1,190         1,577  
Net cash provided by financing activities                   81,620         46,862  
                                   
Effect of exchange rate changes on cash                   (258 )       825  
                                   
Decrease in cash and cash equivalents                   (8,682 )       (36,091 )
                                   
Cash and cash equivalents, beginning of period                   116,150         156,793  
                                   
Cash and cash equivalents, end of period               $   107,468     $   120,702  
                                   
                                   
Cash flows excluding discontinued operations                                
  Operating activities               $   (43,140 )   $   (94,790 )
  Investing activities                   (46,904 )       (2,184 )

Segmented Results
(in thousands of US dollars)
                               
            Asia        
(unaudited) Americas   EMEA   Pacific   Corporate   Consolidated
                               
Three months ended March 31                        
                               
2016                            
  Revenues $ 210,545   $   98,915     $ 66,441   $   207     $ 376,108
  Adjusted EBITDA   21,613       (561 )     3,282       (2,150 )     22,184
  Operating earnings (loss)   16,959       (5,889 )     1,934       (4,137 )     8,867
                                       
2015                                    
  Revenues $ 183,726   $   81,711     $ 70,104   $   221     $ 335,762
  Adjusted EBITDA   13,336       22       5,886       (4,661 )     14,583
  Operating earnings (loss) (1)   9,673       (3,376 )     4,469       (8,423 )     2,343

(1) Operating loss of Corporate for the three months ended March 31, 2015 includes $1,307 of corporate costs allocated to spin-off.

 

COMPANY CONTACTS:Jay S. HennickChairman & CEO                        John B. FriedrichsenSenior Vice President & CFO(416) 960-9500

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