Growing recurring revenues and broader diversification bring more resilience
TORONTO, Canada, November 1, 2022 – 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, 2022. All amounts are in US dollars.
For the quarter ended September 30, 2022, revenues were $1.11 billion, up 8% (12% in local currency), adjusted EBITDA (note 1) was $145.1 million, up 17% (21% in local currency) and adjusted EPS (note 2) was $1.41, up 11% versus the prior year period. Third quarter adjusted EPS would have been approximately $0.06 higher excluding foreign exchange impacts. GAAP operating earnings were $84.0 million as compared to $76.0 million. GAAP diluted net earnings per share were $0.27 versus $0.40 in the prior year quarter. Third quarter GAAP EPS would have been approximately $0.07 higher excluding changes in foreign exchange rates.
For the nine months ended September 30, 2022, revenues were $3.24 billion, up 18% (21% in local currency), adjusted EBITDA (note 1) was $427.8 million, up 21% (24% in local currency) and adjusted EPS (note 2) was $4.69, up 20% versus prior year. Nine months ended September 30, 2022 adjusted EPS would have been approximately $0.13 higher excluding foreign exchange impacts. The GAAP operating earnings were $228.7 million and included $27.4 million loss on disposal of the Company’s operations, primarily in Russia. The prior year GAAP operating loss of $269.9 million included $471.9 million settlement of the Long-Term Incentive Arrangement (“LTIA”) with the Company's Chairman & CEO. The GAAP earnings per share were $0.54 as compared to diluted loss per share of $10.19. Year to date GAAP EPS would have been approximately $0.14 higher excluding changes in foreign exchange rates.
“Colliers reported solid third quarter results with Outsourcing & Advisory, Investment Management and Leasing all up strongly, more than offsetting the softness in Capital Markets which is being impacted by higher interest rates, availability of capital and other geopolitical uncertainties,” said Jay S. Hennick, Global Chairman & CEO of Colliers. “Growing recurring revenues and earnings, now at 55% of our proforma EBITDA, together with broader diversification across service lines, geography and client types means the Colliers diversified services business model has more balance and resilience than ever.”
“With the recent additions of Rockwood and Versus, our Investment Management business now represents nearly 30% of our pro forma EBITDA and total assets under management has surpassed $92 billion, firmly establishing Colliers as one of the top players in the rapidly growing alternative private capital industry. In addition, about 85% of our AUM are in perpetual or long-dated strategies with 70% invested in highly defensive asset classes like alternatives and infrastructure creating long-term revenue streams that further fortify our business. Importantly, each of our investment platforms has delivered top-tier returns over the long-term and is led by best-in-class leadership teams who hold significant equity in their own operations thereby creating perfect alignment with our investors and shareholders.”
“In our core service business, we acquired Peakurban during the quarter, adding significant engineering capabilities and a new growth engine to our business in Australia. We also bolstered our presence in the Nordics with an agreement to acquire Pangea Property Partners, a leading real estate advisory firm in Norway and Sweden. Together with our existing operations in Denmark and Finland, Colliers will be the number one player in the Nordic region once the transaction is completed. Finally, just after quarter end, we added Arcadia Property Management to our strong US business, creating further scale and capability in our property management operations.”
“With our highly respected global brand, balanced and diversified business model with significant recurring revenues, a unique enterprising culture and a proven track record of more than 27 years, Colliers continues to be well-positioned to deliver exceptional returns for shareholders in the years to come,” he concluded.
Download the third quarter 2022 earnings results for more details.
Listen to the recorded conference call.
Download the third quarter 2022 earnings presentation.
Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 63 countries, our 18,000 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 approximately 20% for shareholders. With annual revenues of $4.6 billion and $92 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