Cover
CBRE Q1 2021 Supplemental Disclosure
Local currency percent changes are non-GAAP measures. These percent changes are calculated by comparing current year quarter results at
prior year quarter exchange rates versus prior year quarter results. For example, Q1 2021 compares to Q1 2020 results at Q1 2020 exchange rates.
Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the
absolute figures.
Bridge
Estimated Financial Bridges to Revised Financial Presentation Metrics
Effective January 1, 2021, CBRE made the following changes to its reporting of financial results: - Established a new measurement of profit and loss at the business segment level, referred to as segment operating profit. This measure isolates corporate and other overhead costs as well as certain strategic equity investments that are not driven by the three operating segments into a new segment, called Corporate and Other. Previously, corporate and other overhead costs were reported primarily within the Advisory Services segment. - Included all project management revenue and expenses in the Global Workplace Solutions segment. Previously, project management was divided between the Global Workplace Solutions and the Advisory Services segments. - Included all revenue and expenses for leasing and sales in the Advisory Services segment. Previously, a portion of leasing and sales was reported in the Global Workplace Solutions segment. - Adopted net revenue as a non-GAAP financial metric. Net revenue is gross revenue less pass through costs largely associated with subcontracted vendor work performed for clients, which generally has no margin. Prior to 2021, the company utilized fee revenue to analyze its overall financial performance. Fee revenue excluded subcontracted vendor work and additional reimbursed costs, primarily related to employees dedicated to clients, some of which included minimal margin. The estimated bridges below are being provided only this quarter for comparability purposes. Legacy financial metrics and presentation will not be provided going forward.
Segment Level Revenue Bridge1 Revenue Component Bridge
As Presented Changes to Presentation Prior Presentation Methodology Revenue Pass Through Costs also Recognized as Revenue1 Net Revenue1 Client reimburse employee & other costs1 Fee Revenue1 Estimated Impacts of Project Management, GWS Transactions and Corporate Segment Presentation Changes1,2 Prior Presentation Methodology Fee Revenue1
Q1 2021 Q1 2021 Advisory $1,708 ($19) $1,689 ($177) $1,513 $85 $1,597
Advisory $1,708 $158 $1,866 GWS 4,026 (2,561) 1,465 (498) 967 (91) 876
GWS 4,026 (164) 3,862 REI 211 211 211 211
REI 211 (0) 211 Corporate (6) (6) (6) 6 0
Corporate Overhead (6) 6 0 Total $5,939 ($2,580) $3,359 ($675) $2,684 $0 $2,684
Total Revenue $5,939 $0 $5,939 1. Note that these figures have been estimated. We are providing these estimated financial metrics to provide insight into the business as the Company adopts new financial measures.
2. These figures have been rounded.
Segment Level Profitability Bridge1
As Presented Changes to Presentation Prior Presentation Methodology
Q1 2021 Q1 2021
Advisory $332 ($42) $290
GWS 152 (7) 145
REI 61 (5) 56
Corporate Overhead (54) 54 0
Total Adjusted EBITDA $491 $0 $491
'
Operating Results
Operating Results
(in millions, except per share data)
For The Three Months Ended March 31, 2021
GAAP Consolidated Depreciation & Amortization Fair value adjustments to real estate assets acquired in the Telford Acquisition that were sold in period Carried Interest Write-off of financing costs on extinguished debt Tax impact of adjusted items Adjusted Consolidated
Fee revenue $ 2,684.0 $ 2,684.0
Client reimbursed employee & other costs 675.0 675.0
Net revenue 3,359.0 3,359.0
Pass through costs also recognized as revenue 2,579.9 2,579.9
Total revenue 5,938.9 5,938.9
Cost of revenue 4,719.5 (0.7) 4,718.8
Operating, administrative and other 828.3 (15.3) 813.0
Depreciation and amortization 122.1 (18.4) 103.7
Asset impairments -0 -0
Total costs and expenses 5,669.9 (18.4) (0.7) (15.3) -0 5,635.5
Gain on disposition of real estate 0.2 0.2
Operating income 269.2 18.4 0.7 15.3 -0 303.6
Equity income from unconsolidated subsidiaries 83.5 0.4 83.9
Other income 2.7 2.7
Interest expense, net of interest income 10.1 10.1
Write-off of financing costs on extinguished debt -0 -0
Income before provision for income taxes 345.3 18.4 1.1 15.3 -0 -0 380.1
Provision for income taxes 76.3 8.5 84.8
Tax rate (1) 22.1% 22.3%
Net income 269.0 18.4 1.1 15.3 -0 (8.5) -0 295.3
Less: Net income attributable to non-controlling interests 2.8 2.8
Net income attributable to CBRE Group, Inc. $ 266.2 $ 18.4 $ 1.1 $ 15.3 $ -0 $ (8.5) $ 292.5
Add:
Interest expense, net of interest income 10.1 10.1
Write-off of financing costs on extinguished debt -0 -0 -0
Provision for income taxes 76.3 8.5 84.8
Depreciation and amortization 122.1 (18.4) 103.7
Asset impairments -0 -0 -0
EBITDA $ 474.7 $ -0 $ 1.1 $ 15.3 $ -0 $ -0 $ 491.1
Weighted avg. shares outstanding for diluted EPS 339.6 339.6
Diluted EPS attributed to CBRE Group, Inc. $ 0.78 $ 0.86
(1) Prior to Q3 2020, calculation of tax rate adjusts profit before taxes to remove the portion attributable to non-controlling interests.
Segment Results
Segment Results
($ in millions)
For The Three Months Ended March 31, 2021
Global Corporate,
Advisory Workplace Real Estate Other and
Services Solutions Investments Eliminations Consolidated
Revenue:
Fee revenue $ 1,512.5 $ 966.5 $ 211.1 $ (6.1) $ 2,684.0
Client reimbursed employee & other costs 176.9 498.1 -0 -0 675.0
Net revenue 1,689.4 1,464.6 211.1 (6.1) 3,359.0
Pass through costs also recognized as revenue 18.6 2,561.3 -0 -0 2,579.9
Total revenue 1,708.0 4,025.9 211.1 (6.1) 5,938.9
Costs and expenses:
Cost of revenue 987.5 3,697.8 41.0 (6.8) 4,719.5
Operating, administrative and other 388.6 176.0 181.0 82.7 828.3
Depreciation and amortization 69.8 34.5 10.4 7.4 122.1
Asset impairments -0 -0 -0 -0 -0
Total costs and expenses 1,445.9 3,908.3 232.4 83.3 5,669.9
Gain on disposition of real estate -0 -0 0.2 -0 0.2
Operating income 262.1 117.6 (21.1) (89.4) 269.2
Equity income (loss) from unconsolidated subsidiaries 0.7 (0.2) 56.9 26.1 83.5
Other income -0 0.3 0.4 2.0 2.7
Less: Net income attributable to non-controlling interests 0.3 -0 2.5 -0 2.8
Add-back: Depreciation and amortization 69.8 34.5 10.4 7.4 122.1
Asset impairments -0 -0 -0 -0 -0
EBITDA 332.3 152.2 44.1 (53.9) 474.7
Adjustments:
Carried interest incentive compensation expense to align with the timing of associated revenue -0 -0 15.3 - 0 15.3
Impact of fair value adjustments to real estate assets acquired in the Telford Acquisition (purchase accounting) that were sold in period -0 -0 1.1 - 0 1.1
Segment operating profit (loss) 332.3 152.2 60.5 (53.9)
Adjusted EBITDA 491.1
Segment Revenue Detail History
Segment Revenue Detail History
($ in millions)
Q1 2019 Q2 2019 Q3 2019 Q4 2019 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 2020 Q1 2021
ADVISORY SERVICES
Property Management 393.4 399.4 398.9 444.9 1,636.6 399.4 395.8 400.9 422.9 1,619.0 408.6
Valuation 138.4 149.1 155.1 188.4 631.0 147.7 131.8 138.9 195.6 614.0 159.6
Loan Servicing 46.0 49.7 56.6 54.4 206.7 56.7 57.1 58.0 67.9 239.7 68.8
Advisory Leasing 644.0 848.1 812.5 1,071.3 3,375.9 625.0 521.8 549.2 764.4 2,460.4 520.2
Advisory Sales 388.5 479.9 530.5 765.7 2,164.6 431.7 243.0 348.2 641.0 1,663.9 392.3
Commercial Mortgage Origination 120.9 140.0 163.8 151.2 575.9 123.1 100.4 129.0 225.3 577.8 139.9
Total net revenue 1,731.2 2,066.2 2,117.4 2,675.9 8,590.7 1,783.6 1,449.9 1,624.2 2,317.1 7,174.8 1,689.4
Pass through costs also recognized as revenue 13.2 17.3 16.4 17.0 63.9 19.1 4.3 5.8 10.7 39.9 18.6
Total revenue 1,744.4 2,083.5 2,133.8 2,692.9 8,654.6 1,802.7 1,454.2 1,630.0 2,327.8 7,214.7 1,708.0
GLOBAL WORKPLACE SOLUTIONS
Total fee revenue 753.4 821.6 857.1 963.4 3,395.5 896.3 834.7 923.8 1,006.0 3,660.8 966.5
Client reimbursed employee & other costs 461.0 500.8 532.0 562.2 2,056.0 549.4 546.4 536.7 518.9 2,151.4 498.1
Total net revenue 1,214.4 1,322.4 1,389.1 1,525.6 5,451.5 1,445.7 1,381.1 1,460.5 1,524.9 5,812.2 1,464.6
Pass through costs also recognized as revenue 2,047.1 2,162.9 2,277.2 2,663.2 9,150.4 2,438.8 2,389.4 2,390.8 2,776.8 9,995.8 2,561.3
Total revenue 3,261.5 3,485.3 3,666.3 4,188.8 14,601.9 3,884.5 3,770.5 3,851.3 4,301.7 15,808.0 4,025.9
REAL ESTATE INVESTMENTS
Development Revenue 28.9 48.0 24.3 134.5 235.7 89.8 58.5 69.7 138.5 356.5 79.0
Asset management 88.3 89.6 88.9 92.2 359.0 96.1 91.7 95.4 106.4 389.6 111.3
Acquisition, disposition, incentive & other 8.4 10.7 6.3 10.2 35.6 7.3 5.0 5.5 12.4 30.2 16.2
Carried interest 9.6 1.4 9.7 9.7 30.4 18.3 6.4 (1.0) 31.5 55.2 4.6
Total revenue 135.2 149.7 129.2 246.6 660.7 211.5 161.6 169.6 288.8 831.5 211.1
Less: Cost of revenue -0 -0 -0 85.0 85.0 55.1 30.0 40.4 48.1 173.6 41.0
Add: Gain (loss) on disposition of real estate 19.2 -0 -0 0.6 19.8 22.8 (0.5) 52.8 12.7 87.8 0.2
Add: Equity income from unconsolidated subsidiaries 72.8 19.0 21.9 41.8 155.5 18.9 21.3 30.9 52.4 123.5 56.9
Less: Non-controlling interests income (loss) 6.7 (0.3) 1.0 1.0 8.4 1.1 -0 0.5 1.3 2.9 2.5
Add: Purchase accounting step up impact -0 -0 -0 9.3 9.3 5.8 1.2 2.3 2.3 11.6 1.1
Total adjusted revenue 220.5 169.0 150.1 212.3 751.9 202.8 153.6 214.7 306.8 877.9 225.8
ADVISORY SERVICES ($USD VS. PRIOR YEAR)
Property Management 1.5% -0.9% 0.5% -4.9% -1.1% 2.3%
Valuation 6.7% -11.6% -10.4% 3.8% -2.7% 8.1%
Loan Servicing 23.3% 14.9% 2.5% 24.8% 16.0% 21.3%
Advisory Leasing -3.0% -38.5% -32.4% -28.6% -27.1% -16.8%
Advisory Sales 11.1% -49.4% -34.4% -16.3% -23.1% -9.1%
Commercial Mortgage Origination 1.8% -28.3% -21.2% 49.0% 0.3% 13.6%
Total net revenue 3.0% -29.8% -23.3% -13.4% -16.5% -5.3%
GLOBAL WORKPLACE SOLUTIONS ($USD VS. PRIOR YEAR)
Total net revenue 19.0% 4.4% 5.1% -0.0% 6.6% 1.3%
REAL ESTATE INVESTMENTS ($USD VS. PRIOR YEAR)
Development Revenue 210.7% 21.9% 186.8% 3.0% 51.3% -12.0%
Asset management 8.8% 2.3% 7.3% 15.4% 8.5% 15.8%
Acquisition, disposition, incentive & other -13.1% -53.3% -12.7% 21.6% -15.2% 121.9%
Carried interest 90.6% 357.1% -110.3% 224.7% 81.6% -74.9%
Total revenue 56.4% 7.9% 31.3% 17.1% 25.9% -0.2%
Less: Cost of revenue 100.0% 100.0% 100.0% 43.4% -104.2% 25.6%
Add: Gain (loss) on disposition of real estate 18.8% -100.0% n/m n/m 343.4% -99.1%
Add: Equity income from unconsolidated subsidiaries -74.0% 12.1% 41.1% 25.4% -20.6% 201.1%
Less: Non-controlling interests income (loss) -83.6% -100.0% -50.0% 30.0% -65.5% 127.3%
Add: Purchase accounting step up impact 100.0% 100.0% 100.0% -75.3% 24.7% -81.0%
Total adjusted revenue -8.0% -9.1% 43.0% 44.5% 16.8% 11.3%
ADVISORY SERVICES (LOCAL CURRENCY VS. PRIOR YEAR)
Property Management 2.7% 1.2% -0.4% -6.6% -0.9% -0.8%
Valuation 8.2% -9.1% -11.5% 1.5% -2.8% 3.2%
Loan Servicing 23.3% 15.3% 2.1% 24.1% 15.7% 20.5%
Advisory Leasing -2.5% -37.6% -32.4% -29.2% -27.0% -18.0%
Advisory Sales 11.6% -48.4% -34.8% -17.5% -23.4% -10.9%
Commercial Mortgage Origination 1.9% -28.2% -21.3% 48.8% 0.3% 13.4%
Total net revenue 3.7% -28.6% -23.7% -14.4% -16.5% -7.3%
GLOBAL WORKPLACE SOLUTIONS (LOCAL CURRENCY VS. PRIOR YEAR)
Total net revenue 19.9% 6.2% 4.2% -1.3% 6.7% -1.0%
REAL ESTATE INVESTMENTS (LOCAL CURRENCY VS. PRIOR YEAR)
Development Revenue 210.7% 22.1% 186.4% 2.5% 50.8% -14.8%
Asset management 9.9% 4.7% 4.4% 12.0% 7.8% 10.3%
Acquisition, disposition, incentive & other -13.1% -53.7% -15.9% 19.6% -15.5% 117.8%
Carried interest 90.6% 364.3% -110.3% 216.5% 78.7% -74.9%
Total revenue 57.1% 9.4% 29.0% 15.2% 25.2% -4.0%
Less: Cost of revenue 100.0% 100.0% 100.0% -44.1% 103.5% -29.3%
Add: Gain (loss) on disposition of real estate 18.8% -100.0% n/m n/m 343.4% -99.1%
Add: Equity income from unconsolidated subsidiaries -74.0% 12.1% 41.6% 25.4% -20.6% 194.2%
Less: Non-controlling interests income (loss) -83.6% -100.0% -40.0% 30.0% -63.9% 127.3%
Add: Purchase accounting step up impact 100.0% 100.0% 100.0% -74.2% 36.6% -81.0%
Total adjusted revenue -7.6% -7.1% 41.0% 42.6% 16.4% 7.7%
Investment Segment Detail
Real Estate Investments Segment Detail
Q1 2019 Q2 2019 Q3 2019 Q4 2019 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 2020 Q1 2021
Development Services:
Pipeline ($ in billions) (1) 2.8 2.5 3.5 5.8 5.8 5.8 6.1 5.9 6.1 6.1 6.8
In-Process ($ in billions) (2) 9.7 10.6 10.9 13.0 13.0 13.9 13.7 14.8 14.9 14.9 15.0
Guarantees ($ in millions) (3) 9.5 9.2 6.6 28.5 28.5 25.4 26.1 20.8 23.4 23.4 11.7
Investment Management:
Assets under management ($ in billions) 107.2 106.7 106.2 112.9 112.9 108.1 109.6 114.5 122.7 122.7 124.5
Capital available to deploy ($ in billions) (4) 7.5 6.9 7.6 9.6 9.6 10.0 10.1 10.0 10.9 10.9 12.0
Co-Investments:
Development services line of business ($ in millions) 106.6 109.2 117.8 188.7 188.7 192.2 205.3 241.3 259.9 259.9 266.6
Investment management line of business ($ in millions) 184.2 177.4 185.5 189.5 189.5 176.9 146.7 144.3 150.2 150.2 180.8
(1) Pipeline deals are projects we are pursuing which we believe have a greater than 50% chance of closing or where land has been acquired and the projected construction start is more than 12 months out.
(2) In Process figures include Long-Term Operating Assets (LTOA). LTOA are projects that have achieved a stabilized level of occupancy or have been held 18-24 months following shell completion or acquisition.
(3) Beginning in Q4 2019, includes guarantees associated with Telford Homes, which we acquired on October 1, 2019.
(4) Excludes securities business.
Segment EBITDA Detail History
Segment Operating Profit Detail History
($ in millions)
Q1 2019 Q2 2019 Q3 2019 Q4 2019 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 2020 Q1 2021
CBRE SEGMENT TOTAL
Fee revenue 2,428.7 2,849.5 2,910.5 3,672.2 11,860.9 2,693.3 2,256.0 2,528.5 3,413.0 10,890.8 2,684.0
Client reimbursed employee & other costs 646.5 684.4 721.0 767.1 2,819.0 738.0 731.7 720.0 710.0 2,899.7 675.0
Total net revenue 3,075.2 3,533.9 3,631.5 4,439.3 14,679.9 3,431.3 2,987.7 3,248.5 4,123.0 13,790.5 3,359.0
Pass through costs also recognized as revenue 2,060.3 2,180.2 2,293.6 2,680.1 9,214.2 2,457.9 2,393.7 2,396.6 2,787.5 10,035.7 2,579.9
Total revenue 5,135.5 5,714.1 5,925.1 7,119.4 23,894.1 5,889.2 5,381.4 5,645.1 6,910.5 23,826.2 5,938.9
Cost of revenue 4,022.0 4,445.8 4,687.3 5,533.8 18,688.9 4,712.7 4,399.5 4,564.6 5,370.8 19,047.6 4,719.5
Operating, administrative and other 792.9 877.4 809.6 956.1 3,436.0 790.1 770.8 794.2 951.1 3,306.2 828.3
Depreciation and amortization 105.8 106.5 111.6 115.4 439.3 113.8 116.4 127.7 143.8 501.7 122.1
Asset impairments 89.0 - 0 - 0 0.8 89.8 75.2 - 0 - 0 13.5 88.7 - 0
Total costs and expenses 5,009.7 5,429.7 5,608.5 6,606.1 22,654.0 5,691.8 5,286.7 5,486.5 6,479.2 22,944.2 5,669.9
Gain (loss) on disposition of real estate 19.2 - 0 - 0 0.5 19.7 22.8 (0.5) 52.8 12.7 87.8 0.2
Operating income 145.0 284.4 316.6 513.8 1,259.8 220.2 94.2 211.4 444.0 969.8 269.2
Equity income from unconsolidated subsidiaries 72.7 21.8 25.8 40.7 161.0 20.6 19.5 32.4 53.7 126.2 83.5
Other income (loss) 20.8 4.3 0.9 2.7 28.7 (0.1) 5.2 7.9 4.4 17.3 2.7
Less: Net income (loss) attributable to non-controlling interests 6.4 (0.3) 1.4 1.5 9.0 1.3 0.2 0.7 1.7 3.8 2.8
Add-back: Depreciation and amortization 105.8 106.5 111.6 115.4 439.3 113.8 116.4 127.7 143.8 501.7 122.1
Add-back: Asset impairments 89.0 - 0 - 0 0.8 89.8 75.2 - 0 - 0 13.5 88.7 - 0
EBITDA 426.9 417.3 453.5 671.9 1,969.6 428.4 235.1 378.7 657.7 1,699.9 474.7
Adjustments (1) 23.1 51.2 1.1 18.8 94.2 2.0 32.2 63.1 95.3 192.6 16.4
Adjusted EBITDA 450.0 468.5 454.6 690.7 2,063.8 430.4 267.3 441.8 753.0 1,892.5 491.1
Adjusted EBITDA margin (net revenue) 14.6% 13.3% 12.5% 15.6% 14.1% 12.5% 8.9% 13.6% 18.3% 13.7% 14.6%
ADVISORY SERVICES
Fee revenue 1,540.0 1,876.6 1,927.3 2,469.1 7,813.0 1,591.7 1,260.7 1,437.2 2,121.9 6,411.5 1,512.5
Client reimbursed employee & other costs 191.2 189.6 190.1 206.8 777.7 191.9 189.2 187.0 195.2 763.3 176.9
Total net revenue 1,731.2 2,066.2 2,117.4 2,675.9 8,590.7 1,783.6 1,449.9 1,624.2 2,317.1 7,174.8 1,689.4
Pass through costs also recognized as revenue 13.2 17.3 16.4 16.9 63.8 19.1 4.3 5.8 10.7 39.9 18.6
Total revenue 1,744.4 2,083.5 2,133.8 2,692.8 8,654.5 1,802.7 1,454.2 1,630.0 2,327.8 7,214.7 1,708.0
Cost of revenue 1,010.1 1,237.9 1,281.8 1,600.6 5,130.4 1,054.2 889.7 986.7 1,382.8 4,313.4 987.5
Operating, administrative and other 418.0 453.8 449.7 515.3 1,836.8 419.2 376.4 384.6 489.4 1,669.6 388.6
Depreciation and amortization 64.4 67.2 71.3 72.4 275.3 70.7 72.2 80.4 88.3 311.6 69.8
Total costs and expenses 1,492.5 1,758.9 1,802.8 2,188.3 7,242.5 1,544.1 1,338.3 1,451.7 1,960.5 6,294.6 1,445.9
Gain on disposition of real estate - 0 - 0 - 0 - 0
- 0 - 0 - 0 - 0
Operating income 251.9 324.6 331.0 504.5 1,412.0 258.6 115.9 178.3 367.3 920.1 262.1
- 0 - 0 - 0 - 0
Equity income (loss) from unconsolidated subsidiaries 1.0 1.7 1.3 (0.9) 3.1 1.0 1.3 1.2 1.0 4.5 0.7
Other income (loss) - 0 - 0 - 0 - 0 - 0 2.9 0.2 0.6 0.3 4.0 -0
Less: Net income (loss) attributable to non-controlling interests (0.1) 0.1 0.3 0.5 0.8 0.2 0.2 0.1 0.4 0.9 0.3
Add-back: Depreciation and amortization 64.5 67.1 71.3 72.3 275.2 70.6 72.2 80.4 88.2 311.4 69.8
EBITDA 317.5 393.3 403.3 575.4 1,689.5 332.9 189.4 260.4 456.4 1,239.1 332.3
Adjustments (1) - 0 0.3 - 0 - 0 0.3 -0 12.6 26.5 69.0 108.1 -0
Segment Operating Profit 317.5 393.6 403.3 575.4 1,689.8 332.9 202.0 286.9 525.4 1,347.2 332.3
Segment Operating Profit margin (revenue) 18.2% 18.9% 18.9% 21.4% 19.5% 18.5% 13.9% 17.6% 22.6% 18.7% 19.5%
Segment Operating Profit margin (net revenue) 18.3% 19.0% 19.0% 21.5% 19.7% 18.7% 13.9% 17.7% 22.7% 18.8% 19.7%
GLOBAL WORKPLACE SOLUTIONS
Fee revenue 753.4 821.6 857.1 963.4 3,395.5 896.3 834.7 923.8 1,006.0 3,660.8 966.5
Client reimbursed employee & other costs 461.0 500.8 532.0 562.2 2,056.0 549.4 546.4 536.7 518.9 2,151.4 498.1
Total net revenue 1,214.4 1,322.4 1,389.1 1,525.6 5,451.5 1,445.7 1,381.1 1,460.5 1,524.9 5,812.2 1,464.6
Pass through costs also recognized as revenue 2,047.1 2,162.9 2,277.2 2,663.2 9,150.4 2,438.8 2,389.4 2,390.8 2,776.8 9,995.8 2,561.3
Total revenue 3,261.5 3,485.3 3,666.3 4,188.8 14,601.9 3,884.5 3,770.5 3,851.3 4,301.7 15,808.0 4,025.9
Cost of revenue 3,017.3 3,215.5 3,404.0 3,848.6 13,485.4 3,611.6 3,483.4 3,540.9 3,946.1 14,582.0 3,697.8
Operating, administrative and other 146.8 184.6 151.6 193.7 676.7 166.7 163.9 167.0 197.6 695.2 176.0
Depreciation and amortization 31.9 32.3 32.1 34.1 130.4 32.4 32.5 33.8 35.6 134.3 34.5
Asset impairments - 0 - 0 - 0 - 0 - 0 50.2 - 0 - 0 - 0 50.2 - 0
Total costs and expenses 3,196.0 3,432.4 3,587.7 4,076.4 14,292.5 3,860.9 3,679.8 3,741.7 4,179.3 15,461.7 3,908.3
Gain on disposition of real estate - 0 - 0 - 0 - 0
- 0 - 0 - 0 - 0
Operating income 65.5 52.9 78.6 112.4 309.4 23.6 90.7 109.6 122.4 346.3 117.6
- 0 - 0 - 0 - 0
Equity income (loss) from unconsolidated subsidiaries (0.7) (0.2) 0.4 (0.4) (0.9) 0.5 (0.4) 0.2 (0.3) - 0 (0.2)
Other income (loss) - 0 1.5 (2.7) 0.1 (1.1) 0.2 (0.1) - 0 1.0 1.1 0.3
Less: Net (loss) income attributable to non-controlling interests (0.2) (0.1) 0.1 - 0 (0.2) - 0 - 0 - 0 - 0 - 0 - 0
Add-back: Depreciation and amortization 31.9 32.3 32.1 34.1 130.4 32.4 32.5 33.8 35.6 134.3 34.5
Add-back: Asset impairments - 0 - 0 - 0 - 0 - 0 50.2 - 0 - 0 - 0 50.2 - 0
EBITDA 96.9 86.6 108.3 146.2 438.0 106.9 122.7 143.6 158.7 531.9 152.2
Adjustments (1) 8.9 29.4 - 0 - 0 38.3 - 0 5.0 17.1 21.1 43.2 - 0
Segment Operating Profit 105.8 116.0 108.3 146.2 476.3 106.9 127.7 160.7 179.8 575.1 152.2
Segment Operating Profit margin (revenue) 3.2% 3.3% 3.0% 3.5% 3.3% 2.8% 3.4% 4.2% 4.2% 3.6% 3.8%
Segment Operating Profit margin (net revenue) 8.7% 8.8% 7.8% 9.6% 8.7% 7.4% 9.2% 11.0% 11.8% 9.9% 10.4%
REAL ESTATE INVESTMENTS
Total revenue 135.2 149.7 129.2 246.6 660.7 211.5 161.6 169.6 288.8 831.5 211.1
Cost of revenue - 0 - 0 - 0 85.0 85.0 55.0 30.0 40.4 48.1 173.5 41.0
Operating, administrative and other 155.2 149.4 131.8 165.0 601.4 150.2 127.6 147.7 183.7 609.2 181.0
Depreciation and amortization 4.7 1.9 2.6 4.3 13.5 4.4 4.7 5.9 12.3 27.3 10.4
Asset impairments 89.0 - 0 - 0 0.8 89.8 25.0 - 0 - 0 13.5 38.5 - 0
Total costs and expenses 248.9 151.3 134.4 255.1 789.7 234.6 162.3 194.0 257.6 848.5 232.4
Gain (loss) on disposition of real estate 19.2 - 0 - 0 0.5 19.7 22.8 (0.5) 52.8 12.7 87.8 0.2
- 0 - 0 - 0 - 0
Operating income (loss) (94.5) (1.7) (5.1) (7.9) (109.2) (0.4) (1.2) 28.5 43.9 70.8 (21.1)
- 0 - 0 - 0 - 0
Equity income from unconsolidated subsidiaries 72.8 18.9 21.9 41.8 155.4 18.9 21.3 31.0 52.4 123.6 56.9
Other income (loss) 19.2 1.4 1.4 0.6 22.6 (2.6) 0.7 0.1 0.7 (1.1) 0.4
Less: Net income (loss) attributable to non-controlling interests 6.7 (0.3) 1.0 1.0 8.4 1.1 - 0 0.6 1.3 3.0 2.5
- 0 - 0
Add-back: Depreciation and amortization 4.7 1.9 2.6 4.3 13.5 4.4 4.7 5.9 12.3 27.3 10.4
Add-back: Asset impairments 89.0 - 0 - 0 0.8 89.8 25.0 - 0 - 0 13.5 38.5 - 0
EBITDA 84.5 20.8 19.8 38.6 163.7 44.2 25.5 64.9 121.5 256.1 44.1
Adjustments (1) 7.5 17.1 1.1 11.9 37.6 (1.2) (0.9) 6.6 (5.8) (1.3) 16.4
Segment Operating Profit 92.0 37.9 20.9 50.5 201.3 43.0 24.6 71.5 115.7 254.8 60.5
Segment Operating Profit margin (revenue) 68.0% 25.3% 16.2% 20.5% 30.5% 20.3% 15.2% 42.2% 40.1% 30.6% 28.7%
Adjusted revenue 220.5 169.0 150.1 212.3 751.9 202.8 153.6 214.7 306.8 877.9 225.8
Segment Operating Profit margin (adjusted revenue) 41.7% 22.4% 13.9% 23.8% 26.8% 21.2% 16.0% 33.3% 37.7% 29.0% 26.8%
CORPORATE, OTHER AND ELIMINATIONS
Fee revenue 0.1 1.6 (3.1) (6.9) (8.3) (6.2) (1.0) (2.1) (3.7) (13.0) (6.1)
Client reimbursed employee & other costs (5.7) (6.0) (1.1) (1.9) (14.7) (3.3) (3.9) (3.7) (4.1) (15.0) -0
Total net revenue (5.6) (4.4) (4.2) (8.8) (23.0) (9.5) (4.9) (5.8) (7.8) (28.0) (6.1)
Pass through costs also recognized as revenue - 0 - 0 - 0 - 0 - 0 -0 -0 -0 -0 - 0 -0
Total revenue (5.6) (4.4) (4.2) (8.8) (23.0) (9.5) (4.9) (5.8) (7.8) (28.0) (6.1)
Cost of revenue (5.4) (7.6) 1.5 (0.4) (11.9) (8.1) (3.6) (3.4) (6.2) (21.3) (6.8)
Operating, administrative and other 72.9 89.6 76.5 82.1 321.1 54.0 102.9 94.9 80.4 332.2 82.7
Depreciation and amortization 4.8 5.1 5.6 4.6 20.1 6.3 7.0 7.6 7.6 28.5 7.4
Asset impairments - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0
Total costs and expenses 72.3 87.1 83.6 86.3 329.3 52.2 106.3 99.1 81.8 339.4 83.3
Gain on disposition of real estate - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0
Operating loss (77.9) (91.6) (87.9) (95.1) (352.3) (61.7) (111.2) (104.8) (89.5) (367.4) (89.4)
- 0 - 0
Equity income (loss) from unconsolidated subsidiaries (0.4) 1.4 2.2 0.2 3.4 0.2 (2.7) - 0 0.6 (1.9) 26.1
Other income (loss) 1.6 1.4 2.2 2.0 7.2 (0.6) 4.4 7.2 2.4 13.4 2.0
Less: Net (loss) income attributable to non-controlling interests - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0
Add-back: Depreciation and amortization 4.8 5.1 5.6 4.6 20.1 6.3 7.0 7.6 7.6 28.5 7.4
Add-back: Asset impairments - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0
EBITDA (71.9) (83.7) (77.9) (88.3) (321.6) (55.8) (102.5) (90.0) (78.9) (327.4) (53.9)
Adjustments (1) 6.7 4.4 - 0 6.9 18.0 3.2 15.5 12.9 11.0 42.6 - 0
Segment Operating Loss (65.2) (79.3) (77.9) (81.4) (303.6) (52.6) (87.0) (77.1) (67.9) (284.8) (53.9)
(1) Adjustments include certain carried interest compensation expense (reversal) to align with the timing of associated revenue, costs associated with our reorganization, including cost-savings initiatives, integration and other costs, one-time gain related to acquisitions, cost-elimination expenses, the impact of costs primarily
associated with workforce optimization efforts in response to the Covid-19 pandemic, costs associated with certain transformation initiatives that will allow the company to reduce costs, streamline operations and support future growth, and other non-recurring costs.
Income Statement History
Income Statement History
(in millions, except per share data)
Q1 2019 Q2 2019 Q3 2019 Q4 2019 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 2020 Q1 2021
GAAP CONSOLIDATED INCOME STATEMENT
Fee revenue 2,428.7 2,849.5 2,910.5 3,672.2 11,860.9 2,693.3 2,256.0 2,528.5 3,413.0 10,890.8 2,684.0
Client reimbursed employee & other costs 646.5 684.4 721.0 767.1 2,819.0 738.0 731.7 720.0 710.0 2,899.7 675.0
Total net revenue 3,075.2 3,533.9 3,631.5 4,439.3 14,679.9 3,431.3 2,987.7 3,248.5 4,123.0 13,790.5 3,359.0
Pass through costs also recognized as revenue 2,060.3 2,180.2 2,293.6 2,680.1 9,214.2 2,457.9 2,393.7 2,396.6 2,787.5 10,035.7 2,579.9
Total revenue 5,135.5 5,714.1 5,925.1 7,119.4 23,894.1 5,889.2 5,381.4 5,645.1 6,910.5 23,826.2 5,938.9
Cost of revenue 4,022.0 4,445.8 4,687.3 5,533.8 18,688.9 4,712.7 4,399.5 4,564.6 5,370.8 19,047.6 4,719.5
Operating, administrative and other 792.9 877.4 809.6 956.1 3,436.0 790.1 770.8 794.2 951.1 3,306.2 828.3
Depreciation and amortization 105.8 106.5 111.6 115.4 439.3 113.8 116.4 127.7 143.8 501.7 122.1
Asset impairments 89.0 - 0 - 0 0.8 89.8 75.2 -0 -0 13.5 88.7 -0
Total costs and expenses 5,009.7 5,429.7 5,608.5 6,606.1 22,654.0 5,691.8 5,286.7 5,486.5 6,479.2 22,944.2 5,669.9
Gain (loss) on disposition of real estate 19.2 - 0 - 0 0.5 19.7 22.8 (0.5) 52.8 12.7 87.8 0.2
- 0 - 0
Operating income 145.0 284.4 316.6 513.8 1,259.8 220.2 94.2 211.4 444.0 969.8 269.2
- 0 - 0
Equity income from unconsolidated subsidiaries 72.7 21.8 25.8 40.7 161.0 20.6 19.5 32.4 53.7 126.2 83.5
Other income (loss) 20.8 4.3 0.9 2.7 28.7 (0.2) 5.2 7.9 4.4 17.3 2.7
Interest expense, net of interest income 21.2 24.6 21.8 18.0 85.6 16.0 18.0 17.8 16.0 67.8 10.1
Write-off of financing costs on extinguished debt 2.6 - 0 - 0 - 0 2.6 -0 -0 -0 75.6 75.6 -0
Income before provision for income taxes 214.7 285.9 321.5 539.2 1,361.3 224.7 100.9 233.9 410.4 969.9 345.3
Provision for income taxes 43.9 62.5 63.5 (99.9) 70.0 51.2 18.8 49.1 95.1 214.2 76.3
Tax rate (1) (2) 21.1% 21.8% 19.8% -18.6% 5.2% 22.9% 18.7% 21.0% 23.2% 22.1% 22.1%
Net income 170.8 223.4 258.0 639.1 1,291.3 173.5 82.1 184.8 315.3 755.7 269.0
Less: Net income (loss) attributable to non-controlling interests 6.4 (0.3) 1.4 1.5 9.0 1.3 0.2 0.7 1.6 3.8 2.8
Net income attributable to CBRE Group, Inc. 164.4 223.7 256.6 637.6 1,282.3 172.2 81.9 184.1 313.7 751.9 266.2
Add:
Interest expense, net of interest income 21.2 24.6 21.8 18.1 85.7 16.0 18.0 17.8 16.0 67.8 10.1
Write-off of financing costs on extinguished debt 2.6 -0 -0 - 0 2.6 -0 -0 -0 75.6 75.6 -0
Provision for income taxes 43.9 62.5 63.5 (100.0) 69.9 51.2 18.8 49.1 95.1 214.2 76.3
Depreciation and amortization 105.8 106.5 111.6 115.4 439.3 113.8 116.4 127.7 143.8 501.7 122.1
Asset impairments 89.0 -0 -0 0.8 89.8 75.2 -0 -0 13.5 88.7 -0
EBITDA 426.9 417.3 453.5 671.9 1,969.6 428.4 235.1 378.7 657.7 1,699.9 474.7
Weighted avg. shares outstanding for diluted EPS 340.2 340.5 341.1 340.3 340.3 339.7 337.4 337.7 338.8 338.4 339.6
Diluted EPS attributed to CBRE Group, Inc. $ 0.48 $ 0.66 $ 0.75 $ 1.87 $ 3.77 $ 0.51 $ 0.24 $ 0.55 $ 0.93 $ 2.22 $ 0.78
ADJUSTMENTS TO GAAP CONSOLIDATED (4)
Fee revenue - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0
Client reimbursed employee & other costs
Total net revenue
Pass through costs also recognized as revenue - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0
Total revenue - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0
- 0 - 0
Cost of revenue (1.5) (1.1) - 0 (6.4) (9.0) (4.8) (8.1) (16.8) (27.1) (56.8) (0.7)
Operating, administrative and other (21.6) (50.1) (1.1) (9.5) (82.3) 3.7 (23.6) (45.1) (66.5) (131.5) (15.3)
Depreciation and amortization (22.2) (19.6) (19.3) (19.9) (81.0) (20.1) (18.5) (18.7) (39.4) (96.7) (18.4)
Asset impairments (89.0) - 0 - 0 (0.8) (89.8) (75.2) -0 -0 (13.5) (88.7) -0
Total costs and expenses (134.3) (70.8) (20.4) (36.6) (262.1) (96.4) (50.2) (80.6) (146.5) (373.7) (34.4)
Gain on disposition of real estate - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0
Operating income 134.3 70.8 20.4 36.6 262.1 96.4 50.2 80.6 146.5 373.7 34.4
- 0 - 0
Equity income from unconsolidated subsidiaries - 0 - 0 - 0 2.9 2.9 1.0 0.5 1.1 1.6 4.2 0.4
Other income (loss) - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0
Interest expense, net of interest income - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0
Write-off of financing costs on extinguished debt (2.6) - 0 - 0 - 0 (2.6) - 0 - 0 - 0 (75.6) (75.6) - 0
Income before provision for income taxes 136.9 70.8 20.4 39.5 267.6 97.2 50.7 81.8 223.8 453.5 34.8
Provision for income taxes 33.8 17.4 7.2 228.4 286.8 15.3 14.9 20.9 46.8 97.9 8.5
Tax rate (1) (2) 24.7% 24.6% 35.3% 578.2% 107.2% 15.7% 29.4% 25.6% 20.9% 21.6% 24.4%
Net income 103.1 53.4 13.2 (188.9) (19.2) 81.9 35.8 60.9 177.0 355.6 26.3
Less: Net income attributable to non-controlling interests -0 -0 -0 -0 -0 -0 -0 -0 -0
Adjustments to net income attributable to CBRE Group, Inc. 103.1 53.4 13.2 (188.9) (19.2) 81.9 35.8 60.9 177.0 355.6 26.3
Add:
Interest expense, net of interest income - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0
Provision for income taxes 33.8 17.5 7.2 228.4 286.9 15.3 14.9 20.9 46.8 97.9 8.5
Write-off of financing costs on extinguished debt (2.6) - 0 - 0 - 0 (2.6) - 0 - 0 - 0 (75.6) (75.6) - 0
Depreciation and amortization (22.2) (19.6) (19.4) (19.9) (81.1) (20.1) (18.5) (18.7) (39.4) (96.7) (18.4)
Asset impairments (89.0) - 0 - 0 (0.8) (89.8) (75.2) - 0 - 0 (13.5) (88.7) - 0
Adjustments To EBITDA 23.1 51.3 1.0 18.8 113.4 1.9 32.2 63.1 95.3 192.5 16.4
Weighted avg. shares outstanding for diluted EPS 340.2 340.5 341.1 340.3 340.3 339.7 337.4 337.7 338.8 338.4 339.6
Adjustments to diluted EPS attributed to CBRE Group, Inc. $ 0.30 $ 0.16 $ 0.04 $ (0.56) $ (0.06) $ 0.24 $ 0.11 $ 0.18 $ 0.52 $ 1.05 $ 0.08
ADJUSTED CONSOLIDATED INCOME STATEMENT
Fee revenue 2,428.7 2,849.5 2,910.5 3,672.2 11,860.9 2,693.3 2,256.0 2,528.5 3,413.0 10,890.8 2,684.0
Client reimbursed employee & other costs 646.5 684.4 721.0 767.1 2,819.0 738.0 731.7 720.0 710.0 2,899.7 675.0
Total net revenue 3,075.2 3,533.9 3,631.5 4,439.3 14,679.9 3,431.3 2,987.7 3,248.5 4,123.0 13,790.5 3,359.0
Pass through costs also recognized as revenue 2,060.3 2,180.2 2,293.6 2,680.1 9,214.2 2,457.9 2,393.7 2,396.6 2,787.5 10,035.7 2,579.9
Total revenue 5,135.5 5,714.1 5,925.1 7,119.4 23,894.1 5,889.2 5,381.4 5,645.1 6,910.5 23,826.2 5,938.9
Cost of revenue 4,020.5 4,444.7 4,687.3 5,527.4 18,679.9 4,707.9 4,391.4 4,547.7 5,343.7 18,990.7 4,718.8
Operating, administrative and other 771.3 827.3 808.5 946.6 3,353.7 793.8 747.2 749.1 884.6 3,174.7 813.0
Depreciation and amortization 83.6 86.9 92.3 95.5 358.3 93.7 97.9 109.0 104.4 405.0 103.7
Asset impairments - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0
Total costs and expenses 4,875.4 5,358.9 5,588.1 6,569.5 22,391.9 5,595.4 5,236.5 5,405.8 6,332.7 22,570.4 5,635.5
Gain (loss) on disposition of real estate 19.2 - 0 - 0 0.5 19.7 22.8 (0.5) 52.8 12.7 87.8 0.2
- 0 - 0
Operating income 279.3 355.2 337.0 550.4 1,521.9 316.6 144.4 292.1 590.5 1,343.6 303.6
- 0 - 0 - 0 - 0
Equity income from unconsolidated subsidiaries 72.7 21.8 25.8 43.6 163.9 21.6 20.0 33.5 55.3 130.4 83.9
Other income (loss) 20.8 4.3 0.9 2.7 28.7 (0.2) 5.2 7.9 4.4 17.3 2.7
Interest expense, net of interest income 21.2 24.6 21.8 18.0 85.6 16.0 18.0 17.8 16.0 67.8 10.1
Income before provision for income taxes 351.6 356.7 341.9 578.7 1,628.9 322.0 151.6 315.7 634.2 1,423.5 380.1
Provision for income taxes 77.7 79.9 70.7 128.5 356.8 66.5 33.7 70.0 141.9 312.1 84.8
Tax rate (1) (2) 22.5% 22.4% 20.8% 22.3% 22.0% 20.7% 22.3% 22.2% 22.4% 21.9% 22.3%
Net income 273.9 276.8 271.2 450.2 1,272.1 255.5 117.9 245.7 492.3 1,111.4 295.3
Less: Net income (loss) attributable to non-controlling interests 6.4 (0.3) 1.4 1.5 9.0 1.3 0.2 0.7 1.6 3.8 2.8
Adjusted net income attributable to CBRE Group, Inc. 267.5 277.1 269.8 448.7 1,263.1 254.2 117.7 245.0 490.7 1,107.6 292.5
Add:
Interest expense, net of interest income 21.2 24.6 21.8 18.0 85.6 16.0 18.0 17.8 16.0 67.8 10.1
Provision for income taxes 77.7 79.9 70.7 128.5 356.8 66.5 33.7 70.0 141.9 312.1 84.8
Depreciation and amortization 83.6 86.9 92.3 95.5 358.3 93.7 97.9 109.0 104.4 405.0 103.7
Asset impairments -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0
Adjusted EBITDA 450.0 468.5 454.6 690.7 2,063.8 430.4 267.3 441.8 753.0 1,892.5 491.1
Weighted avg. shares outstanding for diluted EPS 340.2 340.5 341.1 340.3 340.3 339.7 337.4 337.7 338.8 338.4 339.6
Diluted EPS attributed to CBRE Group, Inc. $ 0.79 $ 0.81 $ 0.79 $ 1.32 $ 3.71 $ 0.75 $ 0.35 $ 0.73 $ 1.45 $ 3.27 $ 0.86
(1) Calculation of tax rate adjusts profit before taxes to remove the portion attributable to non-controlling interests as noted below:
(2) Prior to Q3 2020, calculation of tax rate adjusts profit before taxes to remove the portion attributable to non-controlling interests.
GAAP CONSOLIDATED INCOME STATEMENT
Taxes (A) 43.9 62.5 63.5 (99.9) 70.0 51.2 18.8 49.1 95.1 214.2 76.3
Profit Before Taxes 214.7 285.9 321.5 539.2 1,361.3 224.7 100.9 233.9 410.4 969.9 345.3
Non-Controlling Interests 6.4 (0.3) 1.4 1.5 9.0 1.3 0.2 -0 -0 1.5 -0
Profit Before Taxes, excluding non-controlling interests (B) 208.3 286.2 320.1 537.7 1,352.3 223.4 100.7 233.9 410.4 968.4 345.3
Effective Tax Rate (A/B) 21.1% 21.8% 19.8% -18.6% 5.2% 22.9% 18.7% 21.0% 23.2% 22.1% 22.1%
ADJUSTMENTS TO GAAP CONSOLIDATED
Taxes (A) 33.8 17.4 7.2 228.4 286.8 15.3 14.9 20.9 46.8 97.9 8.5
Profit Before Taxes 136.9 70.8 20.4 39.5 267.6 97.2 50.7 81.8 223.8 453.5 34.8
Non-Controlling Interests -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0
Profit Before Taxes, excluding non-controlling interests (B) 136.9 70.8 20.4 39.5 267.6 97.2 50.7 81.8 223.8 453.5 34.8
Effective Tax Rate (A/B) 24.7% 24.6% 35.3% 578.2% 107.2% 15.7% 29.4% 25.6% 20.9% 21.6% 24.4%
ADJUSTED CONSOLIDATED INCOME STATEMENT
Taxes (A) 77.7 79.9 70.7 128.5 356.8 66.5 33.7 70.0 141.9 312.1 84.8
Profit Before Taxes 351.6 356.7 341.9 578.7 1,628.9 322.0 151.6 315.7 634.2 1,423.5 380.1
Non-Controlling Interests 6.4 (0.3) 1.4 1.5 9.0 1.3 0.2 -0 -0 1.5 -0
Profit Before Taxes, excluding non-controlling interests (B) 345.2 357.0 340.5 577.2 1,619.9 320.7 151.4 315.7 634.2 1,422.0 380.1
Effective Tax Rate (A/B) 22.5% 22.4% 20.8% 22.3% 22.0% 20.7% 22.3% 22.2% 22.4% 21.9% 22.3%
N/M = Not Meaningful
(3) Tax rate for Q4 2017 and FY 2017 on a GAAP basis is unusually high given one-time impact associated with U.S. tax reform.
(4) Adjustments include non-cash depreciation & amortization expense related to certain assets attributable to acquisitions, non-cash asset impairments, costs associated with our reorganization, including cost-savings initiatives, costs associated with workforce optimization efforts in response to the Covid-19 pandemic, costs associated with certain transformation initiatives that will allow the company to reduce costs, streamline operations and support future growth, certain carried interest compensation expense (reversal) to align with the timing of associated revenue, integration and other costs (gain) related to acquisitions, cost-elimination expenses and other non-recurring costs, as well as the associated impact to provision for income taxes for these charges. For Q4 2017, FY 2017, Q1 2018, Q4 2018 and FY 2018 also includes removal of tax impact associated with U.S. tax reform.
Balance Sheet History
Balance Sheet History
($ in millions)
Q1 2019 Q2 2019 Q3 2019 Q4 2019 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 2020 Q1 2021
ASSETS
Cash and cash equivalents 605.0 535.6 577.5 971.8 971.8 628.4 1,214.2 1,481.9 1,896.2 1,896.2 1,910.3
Restricted cash 82.7 77.6 124.8 122.0 122.0 104.2 99.5 164.6 143.1 143.1 91.4
Receivables, net 3,801.5 4,001.0 4,057.8 4,466.7 4,466.7 4,262.3 4,134.8 3,998.0 4,394.9 4,394.9 4,232.6
Warehouse receivables and advance warehouse funding (1) 1,548.2 1,365.9 1,364.6 993.0 993.0 1,273.3 765.1 1,211.9 1,411.2 1,411.2 686.3
Contract assets 412.4 465.6 510.4 529.8 529.8 530.7 478.5 459.8 471.8 471.8 449.2
Income taxes receivable 58.3 53.8 38.6 233.0 233.0 117.7 137.5 102.2 137.3 137.3 108.8
Property and equipment, net 730.4 746.5 782.0 836.2 836.2 800.9 824.8 818.3 815.0 815.0 774.3
Operating lease assets (2) 938.7 949.2 980.3 998.0 998.0 997.8 1,063.5 1,058.0 1,020.4 1,020.4 1,000.7
Goodwill and other intangibles, net 5,002.5 4,995.1 4,952.9 5,133.0 5,133.0 5,013.5 5,026.3 5,078.2 5,189.5 5,189.5 5,175.2
Investments in and advances to unconsolidated subs 228.4 307.3 328.6 426.7 426.7 422.9 386.1 392.6 452.3 452.3 682.6
Investments held in trust - special purpose acquisition company -0 -0 -0 -0 -0 -0 -0 -0 402.5 402.5 402.5
Other assets, net 1,284.9 1,221.5 1,323.4 1,487.0 1,487.0 1,528.6 1,570.1 1,581.6 1,704.9 1,704.9 1,734.8
Total Assets 14,693.0 14,719.1 15,040.9 16,197.2 16,197.2 15,680.3 15,700.4 16,347.1 18,039.1 18,039.1 17,248.7
LIABILITIES
Current liabilities, ex-debt 3,924.8 4,131.3 4,458.0 5,283.6 5,283.6 4,615.7 4,447.5 4,764.2 5,544.6 5,544.6 4,883.7
Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) 1,561.2 1,350.0 1,348.6 977.2 977.2 1,258.8 753.9 1,191.8 1,384.0 1,384.0 675.5
Revolving credit facility 336.0 230.0 52.0 -0 -0 -0 451.0 -0 -0 -0 -0
Senior term loans, net 744.0 750.3 731.8 744.6 744.6 737.6 745.9 765.7 785.7 785.7 766.3
Senior notes, net 1,015.8 1,016.0 1,016.3 1,016.6 1,016.6 1,017.0 1,017.2 1,017.5 594.5 594.5 594.8
Senior notes 2.5%, net -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 487.3
Other debt 3.0 2.9 6.6 7.1 7.1 7.7 8.6 6.6 6.8 6.8 6.8
Operating lease liabilities (2) 1,154.7 1,169.7 1,202.7 1,226.4 1,226.4 1,228.9 1,310.4 1,314.7 1,325.3 1,325.3 1,297.5
Other long-term liabilities 749.3 678.4 665.9 668.6 668.6 645.1 680.9 692.3 892.5 892.5 881.0
Total Liabilities 9,488.8 9,328.6 9,481.9 9,924.1 9,924.1 9,510.8 9,415.4 9,752.8 10,533.4 10,533.4 9,592.9
Non-controlling interest subject to redemption -0 -0 -0 -0 -0 -0 -0 -0 385.6 385.6 384.4
EQUITY
CBRE Group, Inc. stockholders' equity 5,089.4 5,346.6 5,511.8 6,232.7 6,232.7 6,129.3 6,243.9 6,553.1 7,078.3 7,078.3 7,230.4
Non-controlling interests 114.8 43.9 47.2 40.4 40.4 40.2 41.1 41.2 41.8 41.8 41.0
TOTAL EQUITY 5,204.2 5,390.5 5,559.0 6,273.1 6,273.1 6,169.5 6,285.0 6,594.3 7,120.1 7,120.1 7,271.4
TOTAL LIABILITIES AND EQUITY 14,693.0 14,719.1 15,040.9 16,197.2 16,197.2 15,680.3 15,700.4 16,347.1 18,039.1 18,039.1 17,248.7
(1) Represents loan receivables, the majority of which are offset by borrowings under related warehouse line of credit facilities.
(2) Reflects assets and liabilities recorded as a result of adopting Accounting Standards Update (ASU) No. 2016-02, "Leases (Topic 842)" on January 1, 2019 prospectively using the optional transitional method associated with no
adjustment to comparative period financial statements presented for prior periods.
Cash Flow History
Cash Flow History
($ in millions)
Q1 2019 Q2 2019 Q3 2019 Q4 2019 YTD 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 YTD 2020 Q1 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income 170.8 223.4 258.1 639.1 1,291.4 173.5 82.1 184.8 315.3 755.7 269.0
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization 105.8 106.5 111.6 115.4 439.3 113.8 116.4 127.7 143.8 501.7 122.1
Amortization and write-off of financing costs on extinguished debt 4.2 1.5 1.5 1.5 8.7 1.5 1.6 1.6 78.1 82.8 1.6
Gains related to mortgage servicing rights, premiums on loan sales and sales of other assets (53.5) (60.8) (76.8) (55.6) (246.7) (52.4) (53.3) (73.8) (118.5) (298.0) (72.0)
Asset impairments 89.0 - 0 - 0 0.8 89.8 75.2 - 0 - 0 13.5 88.7 - 0
Gain associated with remeasuring our investment in a joint venture entity to fair value at the date we acquired the remaining interest - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0
Net realized and unrealized (gains) losses, primarily from investments (20.9) (4.4) (0.9) (2.7) (28.9) 0.2 (5.2) (7.9) (4.4) (17.3) (2.7)
(Recovery of) provision for doubtful accounts 1.9 9.6 6.6 2.3 20.4 9.1 20.8 19.6 (5.1) 44.4 0.7
Net compensation expense (reversal) for equity awards 29.3 36.3 33.4 28.8 127.8 (1.2) 20.9 22.1 18.6 60.4 35.8
Equity income from unconsolidated subsidiaries (72.7) (21.8) (25.8) (40.7) (161.0) (20.6) (19.5) (32.4) (53.7) (126.2) (83.5)
Distribution of earnings from unconsolidated subsidiaries 77.2 20.4 48.0 53.4 199.0 29.2 23.5 51.1 52.2 156.0 33.0
Proceeds from sale of mortgage loans 4,453.8 5,645.5 5,687.5 4,018.2 19,805.0 3,595.6 3,825.5 4,144.2 9,372.2 20,937.5 4,643.6
Origination of mortgage loans (4,646.3) (5,444.0) (5,291.5) (4,008.1) (19,389.9) (3,859.4) (3,303.3) (4,564.5) (9,540.9) (21,268.1) (3,909.3)
(Decrease) increase in warehouse lines of credit 232.4 (211.2) (1.4) (371.4) (351.6) 281.7 (505.0) 437.9 192.2 406.8 (708.5)
(Increase) decrease in advance warehouse funding - 0 - 0 (376.7) 376.7 - 0 - 0 - 0 - 0 - 0 - 0 - 0
Tenant concessions received 3.4 9.4 5.4 2.9 21.1 13.3 10.1 5.2 19.4 48.0 1.6
Purchase of equity securities (62.1) (8.1) (11.2) (1.6) (83.0) (3.6) (3.0) (2.3) (2.2) (11.1) (2.4)
Proceeds from sale of equity securities 25.7 12.8 6.8 1.6 46.9 4.9 4.0 2.3 2.5 13.7 3.0
(Increase) decrease in real estate under development (3.4) - 0 - 0 34.8 31.4 7.7 (7.0) (68.9) (37.4) (105.6) (15.9)
Decrease (increase) in receivables, prepaid expenses and other assets (including contract and lease assets) (168.9) (290.1) (185.6) (176.5) (821.1) 52.8 223.3 334.0 (239.1) 371.0 161.2
(Decrease) increase in accounts payable and accrued expenses and other liabilities (including contract and lease liabilities) (33.9) 197.5 (4.8) 147.9 306.7 (27.1) (85.1) 13.2 204.5 105.5 (245.5)
(Decrease) increase in compensation and employee benefits payable and accrued bonus and profit sharing (510.4) (18.3) 334.2 439.5 245.0 (606.0) (210.6) 265.7 450.8 (100.1) (469.2)
(Increase) decrease in net income taxes receivable/payable (11.3) (85.9) (35.3) (141.9) (274.4) 108.6 16.8 (6.6) 54.8 173.6 41.6
Other operating activities, net (2.7) (19.0) (15.1) (15.7) (52.5) (25.6) - 0 13.2 23.8 11.4 2.4
Net cash (used in) provided by operating activities (392.6) 99.3 468.0 1,048.7 1,223.4 (128.8) 153.0 866.2 940.4 1,830.8 (193.4)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (1) (57.0) (67.2) (71.8) (97.5) (293.5) (62.2) (71.9) (56.4) (76.1) (266.6) (29.6)
Acquisition of businesses, including net assets acquired, intangibles and goodwill, net of cash acquired (2.1) - 0 (12.7) (341.1) (355.9) (25.9) - 0 - 0 (1.9) (27.8) (2.7)
Contributions to unconsolidated subsidiaries (23.6) (11.6) (49.5) (21.3) (106.0) (32.2) (19.0) (20.9) (74.3) (146.4) (168.4)
Distributions from unconsolidated subsidiaries 6.0 4.3 10.7 12.3 33.3 19.0 45.0 2.4 22.3 88.7 6.8
Purchase of cash and cash equivalents held in trust - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0
Other investing activities, net 2.8 0.3 (0.3) (1.7) 1.1 9.1 2.2 4.4 (5.2) 10.5 - 0
Net cash used in investing activities (73.9) (74.2) (123.6) (449.3) (721.0) (92.2) (43.7) (70.5) (135.2) (341.6) (193.9)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from senior term loans 300.0 - 0 - 0 - 0 300.0 - 0 - 0 - 0 - 0 - 0 - 0
Repayment of senior term loans (300.0) - 0 - 0 - 0 (300.0) - 0 - 0 - 0 - 0 - 0 - 0
Proceeds from revolving credit facility 507.0 1,089.0 1,087.0 926.0 3,609.0 331.7 504.0 - 0 - 0 835.7 - 0
Repayment of revolving credit facility (171.0) (1,195.0) (1,265.0) (978.0) (3,609.0) (331.7) (53.0) (451.0) - 0 (835.7) - 0
Repayment of 5.25% senior notes (including premium) - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 (499.7) (499.7) - 0
Establishment of trust account for special purpose acquisition company - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 (402.5) (402.5) - 0
Sales of non-controlling interest - special purpose acquisition company - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 393.7 393.7 - 0
Proceeds from initial public offering, net of costs incurred - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0
Proceeds from notes payable on real estate - 0 4.1 1.1 1.5 6.7 1.7 21.0 17.6 50.3 90.6 23.7
Proceeds from issuance of 2.5% senior notes - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 492.3
Repayments of notes payable on real estate - 0 - 0 - 0 - 0 - 0 - 0 - 0 (24.7) - 0 (24.7) - 0
Repayment of 5.00% senior notes (including premium) - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0
Repayment of debt assumed in acquisition of Telford Homes - 0 - 0 - 0 (110.7) (110.7) - 0 - 0 - 0 - 0 - 0 - 0
Repayment of debt assumed in acquisition of FacilitySource - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0
Repurchase of common stock (45.1) - 0 (49.0) (51.0) (145.1) (50.0) - 0 - 0 - 0 (50.0) (61.1)
Acquisition of businesses (cash paid for acquisitions more than three months after purchase date) (17.2) (11.3) (7.6) (6.0) (42.1) (6.2) (0.6) (27.6) (10.3) (44.7) (0.5)
Units repurchased for payment of taxes on equity awards (9.2) (0.4) (6.9) (1.9) (18.4) (36.9) (0.5) (4.3) (2.1) (43.8) (34.9)
Non-controlling interest contributions 40.8 1.2 4.5 - 0 46.6 0.6 0.8 0.5 0.3 2.2 0.1
Non-controlling interest distributions (1.4) (1.2) (1.2) (0.2) (4.0) (0.5) (0.6) (1.3) (1.9) (4.3) (2.7)
Payment of financing costs - 0 - 0
Other financing activities, net (3.9) (0.5) (0.7) 0.2 (5.0) (10.1) (10.8) (9.1) (12.1) (42.1) (14.9)
Net cash provided by (used in) financing activities 300.0 (114.1) (237.8) (220.1) (272.0) (101.4) 460.3 (499.9) (484.3) (625.3) 402.0
Effect of currency exchange rate changes on cash and cash equivalents and restricted cash (9.8) 14.5 (17.4) 12.1 (0.6) (38.6) 11.5 37.1 71.6 81.6 (52.2)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH (176.3) (74.5) 89.2 391.4 229.8 (361.0) 581.1 332.9 392.5 945.5 (37.5)
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT BEGINNING OF PERIOD 863.9 687.6 613.1 702.3 863.9 1,093.7 732.7 1,313.8 1,646.7 1,093.7 2,039.2
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT END OF PERIOD 687.6 613.1 702.3 1,093.7 1,093.7 732.7 1,313.8 1,646.7 2,039.2 2,039.2 2,001.7
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest 33.6 12.9 33.7 6.5 86.7 27.3 3.8 29.3 7.1 67.5 15.1
Income tax payments (refunds), net 54.2 154.6 93.9 62.3 365.0 (55.9) 2.1 57.9 47.6 51.7 38.5
(1) In the fourth quarter of 2019, we changed our cash flow presentation (retroactive to January 1, 2019) to reflect internal capital expenditure spend within the investing section of the cash flow statement (previously such spend was included within the operating section of the cash flow statement). Accordingly, capital expenditures for the first three quarters of 2019 have been reclassified to conform with our new presentation. Internal capital expenditures prior to 2019 were deemed immaterial and accordingly, presentation for such years was not adjusted.
EBITDA Reconciliation
Reconciliation of net income to adjusted EBITDA
($ in millions) Q1 2019 Q2 2019 Q3 2019 Q4 2019 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 2020 Q1 2021
Net income attributable to CBRE Group, Inc. $ 164.4 $ 223.7 $ 256.6 $ 637.6 $ 1,282.3 $ 172.2 $ 81.9 $ 184.1 $ 313.7 $ 751.9 $ 266.2
Add:
Depreciation and amortization 105.8 106.5 111.6 115.4 439.3 113.8 116.4 127.7 143.8 501.7 122.1
Asset impairments 89.0 -0 -0 0.8 89.8 75.2 - 0 - 0 13.5 88.7 - 0
Interest expense, net of interest income 21.2 24.6 21.8 18.0 85.6 16.0 18.0 17.8 16.0 67.8 10.1
Provision for income taxes 43.9 62.5 63.5 (99.9) 70.0 51.2 18.8 49.1 95.1 214.2 76.3
Write-off of financing costs on extinguished debt 2.6 -0 -0 -0 2.6 - 0 - 0 - 0 75.6 75.6 - 0
EBITDA 426.9 417.3 453.5 671.9 1,969.6 428.4 235.1 378.7 657.7 1,699.9 474.7
Adjustments:
One-time gain associated with remeasuring an investment in
unconsolidated subsidiary to fair value as of the date the
remaining controlling interest was acquired -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0
Costs associated with our reorganization, including cost-savings initiatives 15.8 33.8 -0 -0 49.6 -0 -0 -0 -0 -0 -0
Costs incurred in connection with litgation settlement -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0
Integration and other costs related to acquisitions -0 9.1 4.6 1.7 15.4 0.8 0.2 0.5 0.2 1.7 -0
Costs associated with workforce optimization efforts -0 -0 -0 -0 -0 -0 37.6 -0 -0 37.6 -0
Costs associated with transformation initiatives -0 -0 -0 -0 -0 -0 -0 55.4 99.8 155.2 -0
Costs incurred related to legal entity restructuring -0 -0 -0 6.9 6.9 3.2 0.7 1.1 4.4 9.4 -0
Impact of fair value adjustments to real estate assets acquired in the Telford
Acquisition (purchase accounting) that were sold in period -0 -0 -0 9.3 9.3 5.8 1.2 2.3 2.3 11.6 1.1
Carried interest incentive compensation (reversal) expense
to align with the timing of associated revenue 7.3 8.3 (3.4) 0.8 13.0 (7.8) (7.5) 3.8 (11.4) (22.9) 15.3
Adjusted EBITDA 450.0 468.5 454.7 690.6 2,063.8 430.4 267.3 441.8 753.0 1,892.5 491.1
NonGAAP Financial Measures
Non-GAAP Financial Measures
The following measures are considered "non-GAAP financial measures" under SEC guidelines:
(i) Net revenue
(ii) Adjusted revenue for the Real Estate Investments segment
(iii) Net income attributable to CBRE Group, Inc., as adjusted (which we also refer to as "adjusted net income")
(iv) Diluted income per share attributable to CBRE Group, Inc. shareholders, as adjusted (which we also refer to as "adjusted earnings per share" or "adjusted EPS")
(v) Adjusted EBITDA
(vi) Segment operating profit and segment operating profit on revenue and net revenue margins
(vii) Free cash flow
These measures are not recognized measurements under United States generally accepted accounting principles, or "GAAP." When analyzing our operating performance, investors should use them in addition to, and not as an alternative for, their most directly comparable financial measure calculated and presented in accordance with GAAP. Because not all companies use identical calculations, our presentation of these measures may not be comparable to similarly titled measures of other companies.
Our management generally uses these non-GAAP financial measures to evaluate operating performance and for other discretionary purposes. The company believes that these measures provide a more complete understanding of ongoing operations, enhance comparability of current results to prior periods and may be useful for investors to analyze our financial performance because they eliminate the impact of selected charges that may obscure trends in the underlying performance of our business. The company further uses certain of these measures, and believes that they are useful to investors, for purposes described below.
With respect to net revenue: net revenue is gross revenue less zero margin client reimbured costs largely associated with employees that are dedicated to client facilities and subcontracted vendor work performed for clients. We believe that investors may find this measure useful to analyze the company's overall financial performance because it excludes costs reimburable by clients that have no margin, and as such provides greater visibility into the underlying performance of our business. Prior to 2021, the company utilized fee revenue to analyze the overall financial performance which reflected gross revenue less both client reimbursed costs largely associated with employees that are dedicated to client facilities and subcontracted vendor work performed for clients with no or minimal margin.
With respect to adjusted revenue: the company believes that investors may find this measure useful to analyze the financial performance of our Real Estate Investments segment because it is more reflective of this segment's total operations.
With respect to adjusted net income, adjusted EPS, adjusted EBITDA, segment operating profit and segment operating profit on revenue and net revenue margins: the company believes that investors may find these measures useful in evaluating our operating performance compared to that of other companies in our industry because their calculations generally eliminate the accounting effects of acquisitions, which would include impairment charges of goodwill and intangibles created from acquisitions-and in the case of adjusted EBITDA, segment operating profit and segment operating profit on revenue and net revenue margins-the effects of financings and income tax and the accounting effects of capital spending. All of these measures and adjusted revenue may vary for different companies for reasons unrelated to overall operating performance. In the case of adjusted EBITDA and segment operating profit, this measure is not intended to be a measure of free cash flow for our management's discretionary use because it does not consider cash requirements such as tax and debt service payments. The adjusted EBITDA and segment operating profit measures calculated herein may also differ from the amounts calculated undersimilarly titled definitions in our credit facilities and debt instruments, which amounts are further adjusted to reflect certain other cash and non-cash charges and are used by us to determine compliance with financial covenants therein and our ability to engage in certain activities, such as incurring additional debt. The company also uses adjusted EBITDA, segment operating profit and adjusted EPS as significant components when measuring our operating performance under our employee incentive compensation programs.
With respect to free cash flow, the company believes that investors may find this measure useful to analyze the cash flow generated from operations after accounting for cash outflows to support operations and capital expenditures. With respect to net debt (net cash), the company believes that investors use this measure when calculating the company's net leverage ratio.
Input
ENTITY
Value Must use for top level entities, i.e. CBRELoB, TotGeog. Use for US$ amounts for other entities that have functional currency other than USD.
ICP (Intercompany) [ICP Top]
SCENARIO - ACTUAL Actual
YEAR - ACTUAL
VIEW - (MTD or QTD)
VIEW - YTD
Period Periodic = Month to Date; QTD = Quarter to Date
CUSTOM1 TotLoB Advisory GWS REI YTD = Year to Date
CUSTOM2 [None]
CUSTOM3 (Currency Effect) [None] PriorYrFX
CUSTOM4 Normalized TotSource
Connection CBREDev6
Input2
ENTITY
Value Must use for top level entities, i.e. CBRELoB, TotGeog. Use for US$ amounts for other entities that have functional currency other than USD.
ICP (Intercompany) [ICP Top]
SCENARIO - ACTUAL Plan
YEAR - ACTUAL
VIEW - (MTD or QTD)
VIEW - YTD
Period Periodic = Month to Date; QTD = Quarter to Date
CUSTOM1 TotLoB YTD = Year to Date
CUSTOM2 [None]
CUSTOM3 (Currency Effect) [None] PriorYrFX
CUSTOM4 Normalized TotSource
Connection CBREDev6

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CBRE Group Inc. published this content on 29 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 April 2021 16:21:06 UTC.