CB Richard Ellis 2Q Profit Up 12% On Property Sales Last update: 7/27/2011 5:46:35 PM
DOW JONES NEWSWIRES CB Richard Ellis Group Inc.'s (CBG) second-quarter profit rose 12% on higher revenue, particularly from property sales. CB Richard Ellis has posted sharply higher earnings over the past year as commercial real-estate prices rebounded in many markets, though the brokerage's revenue growth in the first quarter was weaker than expected. The company also expanded in the latest quarter by picking up Clarion Real Estate Securities, a U.S.-based global listed property-securities business, from ING Groep NV (ING, INGA.AE) along with interests in funds the business managed. CB Richard Ellis said in February it would pay $940 million to buy the assets--including essentially all of ING's real estate investment-management operations in Europe and Asia, to add to its own investment-management business. CB Richard Ellis reported a profit of $61.2 million, or 19 cents a share, up from $54.8 million, or 17 cents a share, a year earlier. Excluding restructuring charges and other impacts, per-share earnings rose to 21 cents from 18 cents as revenue grew 21% to $1.4 billion. Analysts polled by Thomson Reuters expected a per-share profit of 24 cents and revenue of $1.38 billion. Operating margin rose to 9.2% from 8.3%. Costs and expenses grew 20%. Property sales revenue climbed 44% globally, as real estate sales revenue grew 68% in the Americas. Leasing revenue increased 22%. Outsourcing revenue, including property and facilities management, rose 13%. The company also announced plans to change its corporate name to CBRE Group Inc. effective Jan. 1. Shares added a penny to $22.93 after-hours trading. The stock is up 49% over the past 12 months. -By Drew FitzGerald and Nathalie Tadena, Dow Jones Newswires; 212-416-2909; Andrew.FitzGerald@dowjones.com (END) Dow Jones NewswiresJuly 27, 2011 17:46 ET (21:46 GMT)
"Los Angeles, CA — July 27, 2011 — CB Richard Ellis Group, Inc. (NYSE:CBG) today reported continued revenue and earnings growth for the second quarter ended June 30, 2011.
Revenue for the quarter totaled $1.4 billion, an increase of 21% from $1.2 billion in the second quarter of 2010.
· Net income on a U.S. GAAP basis improved to $61.2 million, or $0.19 per diluted share, for the second quarter of 2011, an increase of 12% from $54.8 million, or $0.17 per diluted share, for the second quarter of 2010.
· Excluding selected charges(1), net income(2) totaled $67.0 million, or $0.21 per diluted share, for the current-year quarter, up 14% and 17%, respectively, from $58.8 million, or $0.18 per diluted share, in the second quarter of 2010.
Earnings Before Interest Taxes Depreciation and Amortization (EBITDA)(3) rose 3% to $166.1 million for the second quarter of 2011 from $161.6 million a year earlier. Excluding selected charges, EBITDA(3) rose 4% to $172.4 million in the current period from $165.2 million in the second quarter of 2010.
Last year’s second-quarter Development Services EBITDA was $19 million greater than in this year’s second quarter, predominately resulting from outsized gains from property sales. In addition, this year’s second-quarter Global Investment Management EBITDA included an increase of approximately $6 million of carried interest incentive compensation expense. These factors significantly tempered overall EBITDA growth compared with the prior-year period, and without their impact, overall EBITDA would have grown 22%. "
**Note: EBITDA growing 22% w/o one time events!!**
“We are very pleased with the strong revenue gains we recorded across the Company during the second quarter,” said Brett White, chief executive officer of CB Richard Ellis. “Despite continued uncertainty in the macro environment, revenue rose by double digits in nearly every service line in all three geographic regions. This performance illustrates the ability of our people and platform to drive continued business gains in a global economy that is still marked by slow, uneven growth.”