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Colliers Reports Third Quarter Results

GlobeNewswire - Tue Nov 5, 6:00AM CST

Solid growth across all service lines and segments

Re-aligned operating segments to better reflect value and growth

Third quarter and year to date operating highlights:

  Three months ended Nine months ended
  September 30 September 30
(in millions of US$, except EPS) 2024  2023  2024  2023 
             
Revenues$1,179.1 $1,056.0 $3,320.4 $3,100.0 
Adjusted EBITDA (note 1) 154.6  144.9  419.0  396.6 
Adjusted EPS (note 2) 1.32  1.19  3.46  3.36 
             
GAAP operating earnings 109.7  70.9  267.8  168.3 
GAAP diluted net earnings (loss) per share 0.73  0.53  1.73  (0.04)

TORONTO, Nov. 05, 2024 (GLOBE NEWSWIRE) -- Colliers International Group Inc. (NASDAQ and TSX: CIGI) (“Colliers” or the “Company”) today announced operating and financial results for the third quarter ended September 30, 2024. All amounts are in US dollars.

For the third quarter ended September 30, 2024, revenues were $1.18 billion, up 12% (11% in local currency) and Adjusted EBITDA (note 1) was $154.6 million, up 7% (6% in local currency) versus the prior year quarter. Adjusted EPS (note 2) was $1.32, up 11% from $1.19 in the prior year quarter. Third quarter adjusted EPS would have been approximately $0.01 lower excluding foreign exchange impacts. The GAAP operating earnings were $109.7 million as compared to $70.9 million in the prior year quarter. The GAAP diluted net earnings per share were $0.73, up 38% from $0.53 in the prior year quarter. The third quarter GAAP diluted net earnings per share EPS would have been approximately $0.01 lower excluding foreign exchange impacts.

For the nine months ended September 30, 2024, revenues were $3.32 billion, up 7% (7% in local currency) and adjusted EBITDA (note 1) was $419.0 million, up 6% (6% in local currency) versus the prior year period. Adjusted EPS (note 2) was $3.46, relative to $3.36 in the prior year period. Adjusted EPS were not significantly impacted by changes in foreign exchange rates. The GAAP operating earnings were $267.8 million compared to $168.3 million in the prior year period, favourably impacted by the reversal of contingent consideration expense related to an acquisition. The GAAP diluted net earnings per share were $1.73 compared to a diluted net loss per share of $0.04 in the prior year period. The GAAP diluted net earnings per share were not significantly impacted by changes in foreign exchange rates.

As previously announced, this quarter, Colliers re-aligned its operating segments to better reflect the value and growth potential of its three complementary engines – Real Estate Services, Engineering, and Investment Management. The Real Estate Services segment encompasses the former Americas, EMEA, and Asia Pacific regions, excluding engineering and project management, which are now reported within the new Engineering segment. The Investment Management segment remains unchanged. Comparative periods have been recast to reflect this revised segmentation.

“This quarter, Colliers delivered solid growth across all three segments,” said Jay S. Hennick, Chairman & CEO of Colliers. “Engineering grew by 21%, driven by strategic acquisitions. In Real Estate Services, Capital Markets revenues rose a strong 17%, exceeding expectations. Investment Management revenue, excluding pass-through performance fees, was up slightly though fundraising remained below expectations. AUM was up $2.4 billion during the quarter reaching $98.8 billion, up from $96.4 billion on June 30, 2024.”

“We completed the acquisition of Englobe during the quarter, creating a substantial new growth platform in Canada. After the quarter, we further added GWAL in Canada, and Pritchard Francis and TTM in Australia. With a robust M&A pipeline, we are well positioned to continue growing and strengthening our operations for the long-term.”

“Over the past decade, step by step, Colliers has transformed into a uniquely differentiated global professional services and investment management firm. We have relentlessly focused on expanding and diversifying our global operations, while adding new growth engines that deliver recurring revenue streams. Today, these recurring revenues contribute over 70% of our earnings, bringing unprecedented balance, resilience and predictability – all of which drive greater shareholder value.”

“With experienced leadership, significant inside ownership, and a proven 30-year track record of delivering 20% annualized returns, we are well positioned to sustain mid-to high-single digit growth going forward. As we enter 2025, we anticipate additional upside from an improving capital markets environment, expanded investment strategies and capital raising opportunities in Investment Management and continued incremental growth through acquisitions across all three segments,” he concluded.

About Colliers
Colliers (NASDAQ, TSX: CIGI) is a leading global diversified professional services company, specializing in commercial real estate services, engineering consultancy and investment management. With operations in 70 countries, our 22,000 enterprising professionals provide exceptional service and expert advice to clients. For nearly 30 years, our experienced leadership – with substantial inside ownership – has consistently delivered approximately 20% compound annual investment returns for shareholders. With annual revenues exceeding $4.5 billion and $99 billion of assets under management, Colliers maximizes the potential of property, infrastructure and real assets to accelerate the success of our clients, investors and people. Learn more at corporate.colliers.com, X @Colliers or LinkedIn.

Consolidated Revenues by Line of Service

   Three months endedChangeChange Nine months endedChangeChange
(in thousands of US$)  September 30in US$
%
in LC
%
 September 30in US$
%
in LC
%
(LC = local currency)  2024 2023 2024 2023
                      
Investment Management (1) $127,405  118,7177%7% $375,977 $358,3235%5%
Engineering $316,624  259,92522%21% $816,023 $727,99512%11%
Leasing  266,282  249,6477%6%  798,119  744,6497%7%
Capital Markets  188,196  160,29317%17%  509,594  495,0493%3%
Outsourcing  280,454 $267,3385%5%  820,369  773,5906%6%
Real Estate Services  $734,932  677,2789%8% $2,128,082 $2,013,2886%6%
Corporate   98  112  NM   NM   325  367  NM   NM 
Total revenues  $1,179,059 $1,056,03212%11% $3,320,407 $3,099,9737%7%
(1) Investment Management local currency revenues, excluding pass-through performance fees (carried interest), were up 1% and 3% for the three and nine-month periods ended September 30, 2024, respectively.

Third quarter consolidated revenues were up 11% on a local currency basis driven by robust growth across all service lines, particularly Engineering and Capital Markets. Consolidated internal revenue growth measured in local currencies was 5% (note 4) versus the prior year quarter.

For the nine months ended September 30, 2024, consolidated revenues increased 7% on a local currency basis, led by Engineering. Consolidated internal revenues measured in local currencies were up 4% (note 4).

Segmented Third Quarter Results
Real Estate Services revenues totalled $734.9 million, up 9% (8% in local currency) versus $677.3 million in the prior year quarter on growth across all services lines, as expected. Capital Markets transaction volumes were up meaningfully against a low base in the prior year, particularly in the Americas and Asia Pacific. Leasing continued to build on last quarter’s momentum, notably in EMEA and the US with several large office leasing transactions during the quarter. Adjusted EBITDA was $64.7 million, up 8% (7% in local currency) compared to $59.7 million in the prior year quarter, with continued aggressive investment in recruiting in strategic markets. The GAAP operating earnings were $42.4 million, relative to $40.8 million in the prior year quarter.

Engineering revenues totalled $316.6 million, up 22% (21% in local currency) compared to $259.9 million in the prior year quarter. Revenue growth was primarily driven by the recent acquisition of Englobe. Adjusted EBITDA was $39.8 million, up 23% (24% in local currency) compared to $32.3 million in the prior year quarter. The GAAP operating earnings were $19.7 million relative to $20.0 million in the prior year quarter and were primarily impacted by higher intangible asset amortization expense related to recent acquisitions.

Investment Management revenues were $127.4 million, relative to $118.7 million in the prior year quarter, up 7% (7% in local currency) including historical pass-through performance fees of $7.8 million relative to $0.6 million in the prior year quarter. Excluding performance fees, revenue was up 1% (1% in local currency) driven by new investor capital commitments, which were lower than expected – a trend anticipated to continue through year-end. Adjusted EBITDA was $56.0 million, up 1% (1% in local currency) compared to the prior year quarter with continued investments in new products and strategies as well as additional investments to scale fundraising efforts. The GAAP operating earnings were $67.2 million in the quarter versus $20.4 million in the prior year quarter, with the variance largely attributable to the reversal of contingent consideration expense related to a fundraising condition in a recent acquisition. AUM was up $2.4 billion during the quarter to $98.8 billion from $96.4 billion as of June 30, 2024.

Unallocated global corporate costs as reported in Adjusted EBITDA were $5.9 million in the third quarter relative to $2.3 million in the prior year quarter, primarily from additional claim reserves taken in the Company’s captive insurance operation. The corporate GAAP operating loss for the quarter was $19.6 million compared to $10.3 million in the prior year quarter.

Outlook for 2024
The Company has revised its 2024 outlook to reflect year-to-date results and updated fundraising expectations in its high-margin Investment Management segment for the remainder of the year.

  2024 Outlook
MeasureActual 2023PriorRevised
Revenue growth-3%+8% to +13%+8% to +13%
Adjusted EBITDA growth-6%+8% to +18%+8% to +12%
Adjusted EPS growth-23%+11% to +21%+6% to +12%

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 numerous macroeconomic, geopolitical, health, social and related factors. Continued interest rate volatility and/or lack of credit availability for commercial real estate transactions could materially impact the outlook.

Conference Call
Colliers will be holding a conference call on Tuesday, November 5, 2024 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 the 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 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 clients and renew related contracts; the ability to attract new capital commitments to Investment Management funds and retain existing capital under management; the ability to retain and incentivize employees; 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, war 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, 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 identified in the Company’s other periodic filings with Canadian and US securities regulators are adopted herein and a copy of which can be obtained at www.sedarplus.ca. 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.sedarplus.ca.

This press release does not constitute an offer to sell or a solicitation of an offer to purchase an interest in any fund.

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 income; (iii) interest expense; (iv) loss on disposal of operations; (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 Nine months ended
 September 30 September 30
(in thousands of US$)2024  2023  2024  2023 
             
Net earnings$69,377  $29,376  $155,440  $63,470 
Income tax 21,131   18,096   55,478   38,112 
Other income, including equity earnings from non-consolidated investments (4,121)  (801)  (5,704)  (5,007)
Interest expense, net 23,350   24,228   62,598   71,730 
Operating earnings 109,737   70,899   267,812   168,305 
Loss on disposal of operations -   -   -   2,282 
Depreciation and amortization 56,073   51,163   156,426   151,449 
Gains attributable to MSRs (6,151)  (3,199)  (11,178)  (12,286)
Equity earnings from non-consolidated investments 4,008   685   5,240   4,371 
Acquisition-related items (20,931)  15,366   (34,212)  53,502 
Restructuring costs 5,087   4,485   13,920   12,266 
Stock-based compensation expense 6,813   5,513   20,947   16,726 
Adjusted EBITDA$154,636  $144,912  $418,955  $396,615 

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 adjusted for the effect, after income tax, of: (i) the non-controlling interest redemption increment; (ii) loss on disposal of operations; (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.

Similar to GAAP diluted EPS, Adjusted EPS is calculated using the “if-converted” method of calculating earnings per share in relation to the Convertible Notes, which were fully converted or redeemed by June 1, 2023. 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 where the Convertible Notes were outstanding.

  Three months ended Nine months ended
 September 30 September 30
(in thousands of US$)2024  2023  2024  2023 
             
Net earnings$69,377  $29,376  $155,440  $63,470 
Non-controlling interest share of earnings (14,929)  (14,210)  (35,074)  (38,967)
Interest on Convertible Notes -   -   -   2,861 
Loss on disposal of operations -   -   -   2,282 
Amortization of intangible assets 38,226   37,486   107,697   111,659 
Gains attributable to MSRs (6,151)  (3,199)  (11,178)  (12,286)
Acquisition-related items (20,931)  15,366   (34,212)  53,502 
Restructuring costs 5,087   4,485   13,920   12,266 
Stock-based compensation expense 6,813   5,513   20,947   16,726 
Income tax on adjustments (5,383)  (11,853)  (26,116)  (35,046)
Non-controlling interest on adjustments (5,060)  (6,207)  (18,331)  (17,133)
Adjusted net earnings$67,049  $56,757  $173,093  $159,334 
             
  Three months ended Nine months ended
 September 30 September 30
(in US$)2024  2023  2024  2023 
             
Diluted net earnings (loss) per common share(1)$0.73  $0.53  $1.73  $(0.04)
Interest on Convertible Notes, net of tax -   -   -   0.04 
Non-controlling interest redemption increment 0.34   (0.21)  0.68   0.56 
Loss on disposal of operations -   -   -   0.05 
Amortization expense, net of tax 0.59   0.49   1.48   1.45 
Gains attributable to MSRs, net of tax (0.07)  (0.04)  (0.13)  (0.15)
Acquisition-related items (0.45)  0.26   (0.84)  0.97 
Restructuring costs, net of tax 0.08   0.07   0.21   0.19 
Stock-based compensation expense, net of tax 0.10   0.09   0.33   0.29 
Adjusted EPS$1.32  $1.19  $3.46  $3.36 
             
Diluted weighted average shares for Adjusted EPS (thousands) 50,797   47,549   50,054   47,480 
(1) Amounts shown reflect the "if-converted" method's dilutive impact on the adjusted EPS calculation.
 

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, less purchases of fixed assets, plus cash collections on AR Facility deferred purchase price less distributions to non-controlling interests. 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 dividends to shareholders. 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 Nine months ended
 September 30 September 30
(in thousands of US$)2024  2023  2024  2023 
             
Net cash provided by operating activities$107,128  $42,153  $110,702  $8,558 
Contingent acquisition consideration paid 69   35,655   3,107   38,646 
Purchase of fixed assets (16,158)  (19,349)  (45,511)  (60,411)
Cash collections on AR Facility deferred purchase price 32,957   31,896   101,805   91,207 
Distributions paid to non-controlling interests (17,475)  (16,702)  (66,302)  (67,822)
Free cash flow$106,521  $73,653  $103,801  $10,178 

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

Percentage revenue and Adjusted EBITDA 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 Engineering, Outsourcing and Investment Management service lines. All these service lines represent medium to long-term duration revenue streams that are either contractual or repeatable in nature. Adjusted EBITDA for this purpose is calculated in the same manner as for our debt agreement covenant calculation purposes, 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  Nine months
   ended September 30  ended September 30
(unaudited)  2024   2023   2024   2023 
Revenues $1,179,059  $1,056,032  $3,320,407  $3,099,973 
             
Cost of revenues  712,044   638,659   2,005,351   1,865,569 
Selling, general and administrative expenses  322,136   279,945   925,030   858,866 
Depreciation  17,847   13,677   48,729   39,790 
Amortization of intangible assets  38,226   37,486   107,697   111,659 
Acquisition-related items (1)  (20,931)  15,366   (34,212)  53,502 
Loss on disposal of operations  -   -   -   2,282 
Operating earnings  109,737   70,899   267,812   168,305 
Interest expense, net  23,350   24,228   62,598   71,730 
Equity earnings from non-consolidated investments  (4,008)  (685)  (5,240)  (4,371)
Other income  (113)  (116)  (464)  (636)
Earnings before income tax  90,508   47,472   210,918   101,582 
Income tax  21,131   18,096   55,478   38,112 
Net earnings  69,377   29,376   155,440   63,470 
Non-controlling interest share of earnings  14,929   14,210   35,074   38,967 
Non-controlling interest redemption increment  17,221   (9,947)  33,758   26,393 
Net earnings (loss) attributable to Company  $37,227  $25,113  $86,608  $(1,890)
             
Net earnings (loss) per common share             
             
Basic $0.74  $0.53  $1.74  $(0.04)
Diluted (2) $0.73  $0.53  $1.73  $(0.04)
             
Adjusted EPS (3) $1.32  $1.19  $3.46  $3.36 
             
Weighted average common shares (thousands)            
Basic  50,320   47,206   49,692   45,122 
Diluted  50,797   47,549   50,054   45,504 

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 fully converted or redeemed by June 1, 2023. 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 was dilutive for the three months ended September 30, 2023 and anti-dilutive for the nine months ended September 30, 2023.
(3)   See definition and reconciliation above.

Colliers International Group Inc.        
Condensed Consolidated Balance Sheets        
(in thousands of US$)   
          
  September 30, December 31, September 30,
(unaudited)2024 2023 2023
          
Assets        
Cash and cash equivalents$156,984 $181,134 $168,600
Restricted cash (1) 88,274  37,941  69,991
Accounts receivable and contract assets 884,984  726,764  688,306
Mortgage warehouse receivables (2) 135,915  177,104  54,957
Prepaids and other assets 355,575  306,829  294,631
Warehouse fund assets 108,781  44,492  42,081
 Current assets 1,730,513  1,474,264  1,318,566
Other non-current assets 219,950  188,745  196,669
Warehouse fund assets 52,564  47,536  -
Fixed assets 230,434  202,837  186,346
Operating lease right-of-use assets 394,478  390,565  361,408
Deferred tax assets, net 69,816  59,468  62,781
Goodwill and intangible assets 3,541,615  3,118,711  3,114,120
 Total assets$6,239,370 $5,482,126 $5,239,890
          
Liabilities and shareholders' equity        
Accounts payable and accrued liabilities$1,072,472 $1,104,935 $1,009,426
Other current liabilities 112,411  75,764  88,221
Long-term debt - current 15,683  1,796  3,976
Mortgage warehouse credit facilities (2) 128,944  168,780  48,309
Operating lease liabilities - current 92,699  89,938  88,568
Liabilities related to warehouse fund assets 57,554  -  -
 Current liabilities 1,479,763  1,441,213  1,238,500
Long-term debt - non-current 1,788,686  1,500,843  1,638,650
Operating lease liabilities - non-current 379,457  375,454  343,790
Other liabilities 131,378  151,333  151,650
Deferred tax liabilities, net 82,440  43,191  40,334
Liabilities related to warehouse fund assets -  47,536  -
Redeemable non-controlling interests 1,122,084  1,072,066  1,073,379
Shareholders' equity 1,255,562  850,490  753,587
 Total liabilities and equity$6,239,370 $5,482,126 $5,239,890
          
Supplemental balance sheet information        
Total debt (3)$1,804,369 $1,502,639 $1,642,626
Total debt, net of cash and cash equivalents (3) 1,647,385  1,321,505  1,474,026
Net debt / pro forma adjusted EBITDA ratio (4) 2.5  2.2  2.4

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)   Mortgage warehouse receivables represent mortgage loans receivable, the majority of which are offset by borrowings under mortgage warehouse credit facilities which fund loans that financial institutions have committed to purchase.
(3)   Excluding mortgage warehouse credit facilities.
(4)   Net debt for financial leverage ratio excludes restricted cash and mortgage warehouse credit facilities, in accordance with debt agreements.

Colliers International Group Inc.            
Condensed Consolidated Statements of Cash Flows       
(in thousands of US$)
    Three months ended  Nine months ended
    September 30  September 30
(unaudited)  2024   2023   2024   2023 
              
Cash provided by (used in)            
              
Operating activities            
Net earnings $69,377  $29,376  $155,440  $63,470 
Items not affecting cash:            
 Depreciation and amortization  56,073   51,163   156,426   151,449 
 Loss on disposal of operations  -   -   -   2,282 
 Gains attributable to mortgage servicing rights  (6,151)  (3,199)  (11,178)  (12,286)
 Gains attributable to the fair value of loan premiums and origination fees  (3,601)  (2,887)  (9,224)  (10,913)
 Deferred income tax  (6,528)  1,458   (13,923)  (20,446)
 Other  (14,672)  28,555   476   95,076 
    94,498   104,466   278,017   268,632 
              
Increase in accounts receivable, prepaid            
 expenses and other assets  (69,942)  (76,551)  (164,231)  (133,276)
Increase (decrease) in accounts payable, accrued            
 expenses and other liabilities  41,027   (6,539)  38,125   (6,082)
Increase (decrease) in accrued compensation  38,569   28,442   (48,449)  (125,188)
Contingent acquisition consideration paid  (69)  (35,655)  (3,107)  (38,646)
Mortgage origination activities, net  3,591   4,964   10,783   14,034 
Sales to AR Facility, net  (546)  23,026   (436)  29,084 
Net cash provided by operating activities  107,128   42,153   110,702   8,558 
              
Investing activities            
Acquisition of businesses, net of cash acquired  (454,638)  (1,597)  (472,410)  (61,295)
Purchases of fixed assets  (16,158)  (19,349)  (45,511)  (60,411)
Purchases of warehouse fund assets  (15,676)  (8,989)  (273,019)  (49,565)
Proceeds from disposal of warehouse fund assets  -   6,369   76,438   50,369 
Cash collections on AR Facility deferred purchase price  32,957   31,896   101,805   91,207 
Other investing activities  (43,518)  (18,253)  (101,651)  (47,796)
Net cash used in investing activities  (497,033)  (9,923)  (714,348)  (77,491)
              
Financing activities            
Increase (decrease) in long-term debt, net  418,207   (9,843)  419,683   209,825 
Purchases of non-controlling interests, net  (8,052)  (8,256)  (17,789)  (24,589)
Dividends paid to common shareholders  (7,542)  (7,077)  (14,674)  (13,517)
Distributions paid to non-controlling interests  (17,475)  (16,702)  (66,302)  (67,822)
Issuance of subordinate voting shares  -   -   286,924   - 
Other financing activities  11,003   (5,892)  28,096   7,745 
Net cash provided by (used in) financing activities  396,141   (47,770)  635,938   111,642 
              
Effect of exchange rate changes on cash,            
 cash equivalents and restricted cash  (1,663)  (3,447)  (6,109)  (3,160)
              
Net change in cash and cash            
 equivalents and restricted cash  4,573   (18,987)  26,183   39,549 
Cash and cash equivalents and            
 restricted cash, beginning of period  240,685   257,578   219,075   199,042 
Cash and cash equivalents and            
 restricted cash, end of period $245,258  $238,591  $245,258  $238,591 


 

Colliers International Group Inc.            
Segmented Results
(in thousands of US dollars)
                
  Real Estate   Investment    
(unaudited)Services Engineering Management Corporate Consolidated
                
Three months ended September 30             
                
2024              
 Revenues$734,932 $316,624 $127,405 $98  $1,179,059
 Adjusted EBITDA 64,744  39,820  55,962  (5,890)  154,636
 Operating earnings (loss) 42,399  19,700  67,217  (19,579)  109,737
                
2023              
 Revenues$677,278 $259,925 $118,717 $112  $1,056,032
 Adjusted EBITDA 59,735  32,263  55,164  (2,250)  144,912
 Operating earnings (loss) 40,814  20,017  20,388  (10,320)  70,899
                
                
  Real Estate   Investment    
 Services Engineering Management Corporate Consolidated
                
Nine months ended September 30             
                
2024              
 Revenues$2,128,082 $816,023 $375,977 $325  $3,320,407
 Adjusted EBITDA 197,236  71,814  159,301  (9,396)  418,955
 Operating earnings (loss) 123,508  32,614  161,129  (49,439)  267,812
                
2023              
 Revenues$2,013,288 $727,995 $358,323 $367  $3,099,973
 Adjusted EBITDA 169,988  71,596  160,100  (5,069)  396,615
 Operating earnings (loss) 91,991  42,667  61,599  (27,952)  168,305

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

Chris McLernon
Chief Executive Officer, Real Estate Services 

Christian Mayer
Chief Financial Officer
(416) 960-9500


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