Investment Management continues to scale, further increasing recurring earnings
TORONTO, Canada, August 3, 2022 – Colliers International Group Inc. (NASDAQ and TSX: CIGI) (“Colliers” or the “Company”) today announced operating and financial results for the second quarter ended June 30, 2022. All amounts are in US dollars.
For the quarter ended June 30, 2022, revenues were $1.13 billion, up 19% (23% in local currency), adjusted EBITDA (note 1) was $161.3 million, up 18% (21% in local currency) and adjusted EPS (note 2) was $1.84, up 16% versus the prior year period. Second quarter adjusted EPS would have been approximately $0.05 higher excluding foreign exchange impacts. GAAP operating earnings were $103.9 million. Prior year GAAP operating loss of $385.8 million included a $471.9 million settlement of the Long-Term Incentive Arrangement (“LTIA”) with the Company’s Chairman & CEO which was approved by 95% of disinterested shareholders. GAAP diluted net earnings per share were $0.67 versus diluted net loss of $10.53 in the prior year quarter. Second quarter GAAP EPS would have been approximately $0.05 higher excluding changes in foreign exchange rates.
For the six months ended June 30, 2022, revenues were $2.13 billion, up 24% (27% in local currency), adjusted EBITDA (note 1) was $282.8 million, up 24% (26% in local currency) and adjusted EPS (note 2) was $3.28, up 24% versus prior year. Six months ended June 30, 2022 adjusted EPS would have been approximately $0.07 higher excluding foreign exchange impacts. The GAAP operating earnings were $144.7 million and included $27.0 million loss on disposal of the Company’s operations in Russia. Prior year GAAP operating loss of $345.8 million included the settlement of the LTIA. The GAAP earnings per share were $0.26 as compared to diluted loss per share of $10.80. Year to date GAAP EPS would have been approximately $0.08 higher excluding changes in foreign exchange rates.
“Colliers reported strong second quarter results with continued solid revenue growth across all service lines,” said Jay S. Hennick, Global Chairman & CEO of Colliers.
“During the quarter, we also continued to grow our Investment Management segment in both size and scale furthering our goal of becoming a major player in the rapidly growing alternative private capital industry. We completed two acquisitions and a third after quarter end. Then, in late June, we announced the addition of Versus Capital, a highly successful alternative real asset manager in the US with strong private wealth distribution capabilities. Once completed, Colliers will have more than $85 billion in assets under management (“AUM”).“
“Investment Management now comprises about 30% of Colliers’ pro forma annualized adjusted EBITDA and the business compares very favorably with other public peers in the investment management industry. Our revenues are predominately from recurring management fees, about 90% of our investment funds are perpetual or long-dated strategies – defined as 10 years or more, and 70% are in rapidly growing sectors like alternatives and infrastructure. Most importantly, each of our platforms has a long history of delivering top-tier performance for investors through all investment cycles. Over the past 6 years, Colliers has built an impressive Investment Management business and we continue to see great potential in the years to come.”
“Separately, during the quarter, we added a building consultancy and project management leader in the UK, enhancing our service capabilities in Europe and continuing the growth of our Outsourcing & Advisory segment.”
“Overall, Colliers continues to transform into a more resilient, global and diversified services company with 55% of our pro forma earnings coming from recurring revenue streams and the balance from essential advisory services. Based on acquisitions already completed or announced, we expect 2022 to be a record year of capital deployment, with more than $1 billion invested.“
“With our strong global brand and operating platform, proven track record of more than 27 years, balanced and diversified business model, unique enterprising culture and significant inside ownership, we expect to continue delivering excellent returns for shareholders for many years to come,” he concluded.
Download the second quarter 2022 earnings results for more details.
Listen to the recorded conference call.
Download the second quarter 2022 earnings presentation.
Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 63 countries, our 17,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. For more than 27 years, our experienced leadership with significant inside ownership has delivered compound annual investment returns of 20% for shareholders. With annual revenues of $4.5 billion and $81 billion of assets under management, Colliers maximizes the potential of property and real assets to accelerate the success of our clients, our investors, and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn.
Jay S. Hennick
Global Chairman & Chief Executive Officer
Global Chief Financial Officer