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CIGI Colliers International

Filed: 11 Feb 21, 7:00am

EXHIBIT 99.1

Colliers Reports Better Than Anticipated Fourth Quarter and Full Year Results

Majority of revenues from higher margin recurring services

Operating highlights:

   Three months ended Twelve months ended
   December 31 December 31
 (in millions of US$, except EPS)2020 2019 2020 2019
              
 Revenues$913.7 $928.3 $2,786.9 $3,045.8
 Adjusted EBITDA (note 1) 154.9  144.3  361.4  359.5
 Adjusted EPS (note 2) 1.79  2.01  4.18  4.67
              
 GAAP operating earnings 79.4  99.4  164.6  218.2
 GAAP EPS 0.80  1.20  1.22  2.57
             

TORONTO, Feb. 11, 2021 (GLOBE NEWSWIRE) -- Colliers International Group Inc. (NASDAQ and TSX: CIGI) today announced operating and financial results for the quarter and full year ended December 31, 2020. All amounts are in US dollars.

For the fourth quarter ended December 31, 2020, revenues were $913.7 million, down 2% (4% in local currency) relative to the same quarter in the prior year, adjusted EBITDA (note 1) was $154.9 million, up 7% (4% in local currency) and adjusted EPS (note 2) was $1.79, down 11% versus the prior year period. Fourth quarter adjusted EPS would have been approximately $0.07 lower excluding foreign exchange impacts. GAAP operating earnings were $79.4 million, relative to $99.4 million in the prior year quarter. GAAP diluted net earnings per share were $0.80 relative to $1.20 in the prior year quarter. Fourth quarter GAAP EPS would have been approximately $0.07 lower excluding changes in foreign exchange rates.

For the full year ended December 31, 2020, revenues were $2.79 billion, down 9% (9% in local currency) relative to the same period in the prior year, adjusted EBITDA (note 1) was $361.4 million, up 1% (flat in local currency) versus prior year and adjusted EPS (note 2) was $4.18, down 10% versus prior year. Full year adjusted EPS would have been approximately $0.04 lower excluding foreign exchange impacts. GAAP operating earnings were $164.6 million, relative to $218.2 million in 2019. GAAP diluted earnings per share were $1.22 per share, relative to $2.57 in the prior year period. Full year GAAP EPS would have been approximately $0.04 lower excluding changes in foreign exchange rates.

“Colliers delivered better than anticipated financial results for our fourth quarter and full year 2020, despite the ongoing impact of the global pandemic. The strong finish is a testament to our unique enterprising culture and the steps taken over the past few years to transform Colliers into a more balanced and resilient professional services and investment management company. The majority of our revenues and more than 60% of our Adjusted EBITDA now come from high quality recurring services with the balance coming from transactional services,” said Jay S. Hennick, Global Chairman and CEO of Colliers.

“During 2020, despite many challenges, we continued to invest with a long-term perspective adding Colliers Mortgage and Colliers Engineering & Design, two new platforms that performed better than expected and offer additional growth opportunities in the future. After year end, we also formally launched our new visual identity designed for today’s evolving digital era, a natural evolution of the iconic Colliers brand and reaffirming our commitment to accelerating success for our clients and our people, as we lead our company and industry into the future. With our proven track record of more than 25 years, strong balance sheet, unique enterprising culture and significant inside ownership, we are confident that Colliers will emerge from this pandemic stronger and more balanced than ever,” he concluded.

About Colliers International Group Inc.
Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 67 countries, our more than 15,000 enterprising professionals work collaboratively to provide expert advice to real estate occupiers, owners and investors. For more than 25 years, our experienced leadership with significant insider ownership has delivered compound annual investment returns of almost 20% for shareholders. With annualized revenues of $3.0 billion ($3.3 billion including affiliates) and $40 billion of assets under management, we maximize the potential of property and accelerate the success of our clients and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn.

Consolidated Revenues by Line of Service

   Three months ended   Twelve months ended  
(in thousands of US$)  December 31ChangeChange December 31ChangeChange
(LC = local currency)  2020 2019in US$ %in LC% 2020 2019in US$ %in LC%
                  
Outsourcing & Advisory $377,191 $331,15214%12% $1,226,877 $1,148,9157%7%
Investment Management (1)  43,676  44,722-2%-3%  172,594  174,588-1%-1%
Leasing  215,516  292,489-26%-29%  686,482  946,399-27%-28%
Capital Markets  277,333  259,9257%4%  700,904  775,909-10%-10%
Total revenues  $913,716 $928,288-2%-4% $2,786,857 $3,045,811-9%-9%
                  
(1) Investment Management local currency revenues, excluding pass-through carried interest, were up 4% and 8% for the three months and year ended December 31, 2020, respectively.
 


Consolidated revenues for the fourth quarter declined 4% on a local currency basis, driven by pandemic-related declines primarily in Leasing activity. Consolidated internal revenues measured in local currencies were down 15% (note 3).

For the year ended December 31, 2020, consolidated revenues declined 9% on a local currency basis, with the impact of the pandemic beginning in March 2020. Full year consolidated internal revenues measured in local currencies were down 16% (note 3).

Segmented Fourth Quarter Results
Revenues in the Americas region totalled $524.9 million for the fourth quarter, up 8% (8% in local currency) versus $486.0 million in the prior year quarter. Revenue growth was driven by recent acquisitions with modest internal revenue growth in Outsourcing & Advisory and Capital Markets, partially offset by lower Leasing revenues. Adjusted EBITDA was $70.3 million, up 40% from $50.2 million in the prior year quarter, which includes the impact of recent acquisitions and measures implemented to manage operating costs. GAAP operating earnings were $54.8 million, relative to $35.5 million in the prior year quarter.

Revenues in the EMEA region totalled $182.5 million for the fourth quarter compared to $225.6 million in the prior year quarter, down 19% (24% in local currency) with declines attributable to the pandemic experienced across all service lines. Adjusted EBITDA was $35.6 million, versus $51.2 million in the prior year. GAAP operating earnings were $26.4 million compared to $42.7 million in the fourth quarter of 2019.

Revenues in the Asia Pacific region totalled $162.6 million for the fourth quarter compared to $171.7 million in the prior year quarter, down 5% (11% in local currency) on a pandemic-related decline in transactional businesses partially offset by growth in the Outsourcing & Advisory service line. Adjusted EBITDA was $36.0 million as compared to $32.5 million in the prior year quarter. GAAP operating earnings were $30.4 million, versus $28.1 million in the prior year quarter.

Investment Management revenues for the fourth quarter were $43.7 million compared to $44.7 million in the prior year quarter. No pass-through revenue from historical carried interest was recognized in the fourth quarter, versus $3.1 million in the prior year quarter. Excluding the impact of pass-through revenue, revenues were up 5% (4% in local currency) and were positively impacted by strong growth in both open and closed-end funds series. Adjusted EBITDA was $18.4 million, up 12% relative to $16.5 million in the prior year quarter. GAAP operating earnings were $10.4 million in the quarter, versus $9.9 million in the prior year quarter. Assets under management were $39.5 billion at December 31, 2020, up 9% from $36.2 billion at September 30, 2020 and up 20%, a significant increase from $32.9 billion at December 31, 2019.

Unallocated global corporate costs as reported in Adjusted EBITDA were $5.4 million in the fourth quarter, relative to $6.0 million in the prior year quarter. The corporate GAAP operating loss for the quarter was $42.5 million, relative to $16.6 million in the fourth quarter of 2019 attributable to an increase in the fair value of contingent acquisition consideration on strong operating performance of recently acquired businesses.

Segmented Full Year Results
Revenues in the Americas region totalled $1.63 billion for the full year compared to $1.69 billion in the prior year, down 4% (3% in local currency). The decline was primarily attributable to lower Leasing activity due to the pandemic which was partly offset by contributions from recent acquisitions. Adjusted EBITDA was $180.4 million, up 19% from $151.3 million in the prior year and included the impact of (i) recent acquisitions of Colliers Mortgage and Colliers Engineering & Design and (ii) measures implemented to manage operating costs as a result of the pandemic. GAAP operating earnings were $121.4 million, versus $103.7 million in 2019.

EMEA region revenues totalled $516.5 million for the year compared to $636.5 million in the prior year, down 19% (20% in local currency) on lower activity attributable to the pandemic across all service lines. Adjusted EBITDA was $45.9 million, versus $80.3 million in the prior year. GAAP operating earnings were $8.3 million as compared to $48.5 million in 2019.

Asia Pacific region revenues totalled $470.6 million for the year compared to $542.6 million in the prior year, down 13% (15% in local currency) primarily on lower Leasing and Capital Markets activity due to the pandemic, partially offset by a small increase in Outsourcing & Advisory revenues. Adjusted EBITDA was $66.3 million, versus $76.2 million in the prior year. GAAP operating earnings were $45.2 million, versus $67.1 million in the prior year.

Investment Management revenues were $172.6 million compared to $174.6 million in the prior year. Pass-through revenue from historical carried interest represented $4.2 million in the current year, versus $19.2 million in the prior year. Excluding the impact of pass-through revenue, revenues were up 8% (8% in local currency) and were positively impacted by strong fundraising in closed end funds and growth in open-end funds. Adjusted EBITDA was $69.5 million relative to $61.9 million in the prior year. GAAP operating earnings were $40.7 million, versus $35.0 million in 2019.

Unallocated global corporate costs as reported in Adjusted EBITDA were $0.7 million in 2020, relative to $10.3 million in the prior year with the change attributable to lower compensation and variable expenses. The corporate GAAP operating loss was $51.1 million, relative to $36.2 million in 2019 attributable to an increase in the fair value of contingent acquisition consideration based on strong operating performance of recently acquired businesses.

2021 Outlook
The impact of the COVID-19 pandemic is expected to subside over the course of 2021, although the timing and extent remain uncertain. Transactional revenues are anticipated to rebound in the second half of the year, while Outsourcing & Advisory and Investment Management revenues are expected to remain resilient throughout the year. The outlook for the full year 2021 (relative to 2020), including the full year impact of acquisitions completed during 2020, is as follows:

 Full Year 2021 Outlook
Revenue+10% to +25%
Adjusted EBITDA+10% to +25%

This 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, health, social, geo-political and related factors.

During 2020, the Company took significant measures to maintain business continuity across all service lines, including steps to optimize the level of all critical functions across our business. Expenses incurred in connection with these adjustments are recorded as restructuring costs (note 1) and were primarily severance related. The Company may take further cost management measures in future quarters.

The Company also received wage subsidies totalling $10.9 million during the fourth quarter ($34.8 million for the full year) from governments in several countries. These subsidies were recorded in earnings as an offset to employment costs. The Company may receive further government wage subsidies in future quarters.

Conference Call
Colliers will be holding a conference call on Thursday, February 11, 2021 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 our business may be concentrated; commercial real estate property 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 average capitalization rates across different property 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 major clients and renew related contracts; the ability to retain and incentivize producers; 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 political events including elections, referenda, trade policy changes, immigration policy changes, hostilities 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 related to our global operations, including real estate 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 are identified in the Company’s other periodic filings with Canadian and US securities regulators (which factors are adopted herein and a copy of which can be obtained at www.sedar.com). 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 annual consolidated financial statements and MD&A to be made available on SEDAR at www.sedar.com.

Notes
1. Reconciliation of net earnings to adjusted EBITDA:

Adjusted EBITDA is defined as net earnings, adjusted to exclude: (i) income tax; (ii) other expense (income) other than equity earnings from non-consolidated investments; (iii) interest expense; (iv) depreciation and amortization, including amortization of mortgage servicing rights (“MSRs”); (v) gains attributable to MSRs; (vi) acquisition-related items (including transaction costs, contingent acquisition consideration fair value adjustments and contingent acquisition consideration-related compensation expense); (vii) restructuring costs and (viii) 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 Twelve months ended
(in thousands of US$)December 31 December 31
  2020  2019  2020  2019 
             
Net earnings$49,568  $67,877  $94,489  $137,585 
Income tax 22,980   25,742   42,046   53,013 
Other income, net (1,427)  (868)  (2,906)  (1,853)
Interest expense, net 8,322   6,677   30,949   29,452 
Operating earnings 79,443   99,428   164,578   218,197 
Depreciation and amortization 38,795   25,382   125,906   94,664 
Gains attributable to MSRs (9,668)  -   (17,065)  - 
Equity earnings from non-consolidated investments 1,468   -   2,919   - 
Acquisition-related items 34,349   9,767   45,848   28,532 
Restructuring costs 6,947   7,110   29,628   10,252 
Stock-based compensation expense 3,572   2,633   9,628   7,831 
Adjusted EBITDA$154,906  $144,320  $361,442  $359,476 
                

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 as calculated under the If-Converted method, adjusted for the effect, after income tax, of: (i) the non-controlling interest redemption increment; (ii) amortization expense related to intangible assets recognized in connection with acquisitions and MSRs; (iii) gains attributable to MSRs; (iv) acquisition-related items; (v) restructuring costs and (vi) 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.

Adjusted EPS is calculated using the “if-converted” method of calculating earnings per share in relation to the Convertible Notes, which were issued on May 19, 2020. 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. For the year ended December 31, 2020, the “if-converted” method is anti-dilutive for the GAAP diluted EPS calculation but dilutive for the adjusted EPS calculation

  Three months ended Twelve months ended
(in thousands of US$)December 31 December 31
  2020  2019  2020  2019 
             
Net earnings$49,568  $67,877  $94,489  $137,585 
Non-controlling interest share of earnings (15,666)  (12,930)  (29,572)  (26,829)
Interest on Convertible Notes 2,300   -   5,673   - 
Amortization of intangible assets 27,544   16,437   86,557   61,273 
Gains attributable to MSRs (9,668)  -   (17,065)  - 
Acquisition-related items 34,349   9,767   45,848   28,532 
Restructuring costs 6,947   7,110   29,628   10,252 
Stock-based compensation expense 3,572   2,633   9,628   7,831 
Income tax on adjustments (15,115)  (7,493)  (35,350)  (22,232)
Non-controlling interest on adjustments (4,257)  (2,769)  (11,479)  (9,868)
Adjusted net earnings$79,574  $80,632  $178,357  $186,544 
             
  Three months ended Twelve months ended
(in US$)December 31 December 31
  2020  2019  2020  2019 
             
Diluted net earnings per common share$0.80  $1.20  $1.25  $2.57 
Non-controlling interest redemption increment 0.01   0.17   0.37   0.20 
Amortization expense, net of tax 0.35   0.25   1.23   0.93 
Gains attributable to MSRs, net of tax (0.09)  -   (0.22)  - 
Acquisition-related items 0.53   0.19   0.82   0.58 
Restructuring costs, net of tax 0.12   0.13   0.51   0.19 
Stock-based compensation expense, net of tax 0.07   0.07   0.22   0.20 
Adjusted EPS$1.79  $2.01  $4.18  $4.67 
             
Diluted weighted average shares for Adjusted EPS (thousands) 44,365   40,109   42,647   39,980 
             

3. Local currency revenue growth rate and internal revenue growth rate measures

Percentage revenue 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.

4. 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 properties 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.

 
COLLIERS INTERNATIONAL GROUP INC.
Condensed Consolidated Statements of Earnings
(in thousands of US$, except per share amounts)
     Three months  Twelve months
     ended December 31  ended December 31
(unaudited)  2020   2019   2020   2019 
               
Revenues $913,716  $928,288  $2,786,857  $3,045,811 
               
Cost of revenues  543,124   576,609   1,740,860   1,959,544 
Selling, general and administrative expenses  218,005   217,102   709,665   744,874 
Depreciation  11,251   8,945   39,349   33,391 
Amortization of intangible assets  27,544   16,437   86,557   61,273 
Acquisition-related items (1)  34,349   9,767   45,848   28,532 
Operating earnings  79,443   99,428   164,578   218,197 
Interest expense, net  8,322   6,677   30,949   29,452 
Equity earnings from unconsolidated investments  (1,468)  (845)  (2,919)  (2,065)
Other income  41   (23)  13   212 
Earnings before income tax  72,548   93,619   136,535   190,598 
Income tax  22,980   25,742   42,046   53,013 
Net earnings  49,568   67,877   94,489   137,585 
Non-controlling interest share of earnings  15,666   12,930   29,572   26,829 
Non-controlling interest redemption increment  270   6,934   15,843   7,853 
Net earnings attributable to Company $33,632  $48,013  $49,074  $102,903 
               
Net earnings per common share            
               
 Basic            
    $0.84  $1.21  $1.23  $2.60 
               
 Diluted (2)            
    $0.80  $1.20  $1.22  $2.57 
               
Adjusted EPS (3) $1.79  $2.01  $4.18  $4.67 
               
Weighted average common shares (thousands)            
  Basic  40,111   39,754   39,986   39,550 
  Diluted  44,365   40,109   40,179   39,980 


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 issued on May 19, 2020. 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. For the three-month period and year ended December 30, 2020, the interest (net of tax) on the Convertible Notes was $1,691 and $4,170, respectively. The “if-converted” method is dilutive for the three-month period ended December 31, 2020 and anti-dilutive for the year ended December 31, 2020.
(3)See definition and reconciliation above.


      
Condensed Consolidated Balance Sheets     
(in thousands of US$)
      
       
(unaudited)December 31, 2020 December 31, 2019
       
Assets     
Cash and cash equivalents$156,614 $114,993
Restricted cash (1) 20,919  -
Accounts receivable and contract assets 433,250  436,717
Warehouse receivables (2) 232,207  -
Prepaids and other assets 192,821  155,606
Real estate assets held for sale -  10,741
 Current assets 1,035,811  718,057
Other non-current assets 94,679  92,350
Fixed assets 129,221  107,197
Operating lease right-of-use assets 288,134  263,639
Deferred tax assets, net 45,008  37,420
Goodwill and intangible assets 1,699,314  1,426,675
Real estate assets held for sale -  247,376
 Total assets$3,292,167 $2,892,714
       
Liabilities and shareholders' equity     
Accounts payable and accrued liabilities$748,660 $757,284
Other current liabilities 53,661  56,702
Long-term debt - current 9,024  4,223
Warehouse credit facilities (2) 218,018  -
Operating lease liabilities - current 78,923  69,866
Liabilities related to real estate assets held for sale -  36,191
 Current liabilities 1,108,286  924,266
Long-term debt - non-current 470,871  607,181
Operating lease liabilities - non-current 251,680  229,224
Other liabilities 158,366  99,873
Deferred tax liabilities, net 50,523  28,018
Convertible notes 223,957  -
Liabilities related to real estate assets held for sale -  127,703
Redeemable non-controlling interests 442,375  359,150
Shareholders' equity 586,109  517,299
 Total liabilities and equity$3,292,167 $2,892,714
       
Supplemental balance sheet information     
Total debt (3)$479,895 $611,404
Total debt, net of cash (3) 323,281  496,411
Net debt / pro forma adjusted EBITDA ratio (4) 1.0  1.4


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

 

        
Condensed Consolidated Statements of Cash Flows       
(in thousands of US$)
    Three months ended  Twelve months ended
    December 31  December 31
(unaudited)  2020   2019   2020   2019 
              
Cash provided by (used in)            
              
Operating activities            
Net earnings $49,568  $67,877  $94,488  $137,585 
Items not affecting cash:            
 Depreciation and amortization  38,795   25,382   125,906   94,664 
 Gains attributable to mortgage servicing rights  (9,668)  -   (17,065)  - 
 Gains attributable to the fair value of loan            
 premiums and origination fees  (22,418)  -   (38,531)  - 
 Deferred income tax  3,790   3,286   (13,184)  (6,699)
 Other  43,214   16,020   80,497   57,520 
    103,281   112,565   232,111   283,070 
              
(Increase) decrease in accounts receivable, prepaid            
 expenses and other assets  (31,683)  (89,503)  49,039   (89,235)
(Decrease) increase in accounts payable, accrued            
 expenses and other liabilities  (73,645)  36,564   (13,901)  (15,692)
(Decrease) increase in accrued compensation  67,780   123,895   (78,591)  16,580 
Contingent acquisition consideration paid  (2,540)  (3,216)  (18,224)  (8,928)
Proceeds from sale of mortgage loans  744,907   -   1,226,041   - 
Origination of mortgage loans  (769,532)  -   (1,395,734)  - 
Increase in warehouse credit facilities  36,802   -   193,168   - 
Sale proceeds from AR Facility, net of repurchases  (13,141)  7,268   (27,431)  124,963 
Net cash provided by operating activities  62,229   187,573   166,478   310,758 
              
Investing activities            
Acquisition of businesses, net of cash acquired  (1,692)  (56,899)  (205,608)  (80,576)
Purchases of fixed assets  (10,823)  (12,888)  (40,353)  (44,197)
Purchase of held for sale real estate assets  (38,464)  (94,223)  (84,382)  (94,223)
Proceeds from sale of held for sale real estate assets  84,382   -   178,604   - 
Cash collections on AR facility deferred purchase price  13,862   12,936   51,994   28,100 
Other investing activities  (12,573)  (7,459)  (13,713)  (27,372)
Net cash used in investing activities  34,692   (158,533)  (113,458)  (218,268)
              
Financing activities            
(Decrease) increase in long-term debt, net  (181,192)  (10,612)  (163,064)  (59,312)
Issuance of convertible notes  -   -   230,000   - 
Purchases of non-controlling interests, net of sales  (813)  (652)  (19,791)  (11,480)
Dividends paid to common shareholders  -   -   (3,992)  (3,940)
Distributions paid to non-controlling interests  (6,636)  (4,007)  (35,698)  (31,858)
Other financing activities  4,581   (1,173)  (6,406)  5,602 
Net cash provided by (used in) financing activities  (184,060)  (16,444)  1,049   (100,988)
              
Effect of exchange rate changes on cash  16,939   721   8,471   (3,541)
              
Increase (Decrease) in cash and cash            
 equivalents and restricted cash  (70,200)  13,317   62,540   (12,039)
Cash and cash equivalents and            
 restricted cash, beginning of period  247,733   101,676   114,993   127,032 
Cash and cash equivalents and            
 restricted cash, end of period $177,533  $114,993  $177,533  $114,993 


 
Segmented Results
(in thousands of US dollars)
                   
      Asia Investment    
(unaudited)Americas EMEA Pacific Management Corporate Consolidated
                   
Three months ended December 31               
                   
2020                 
 Revenues$524,860 $182,461 $162,616 $43,676 $103  $913,716
 Adjusted EBITDA 70,267  35,599  36,034  18,425  (5,419)  154,906
 Operating earnings (loss) 54,834  26,407  30,354  10,391  (42,543)  79,443
                   
2019                 
 Revenues$486,038 $225,589 $171,681 $44,722 $258  $928,288
 Adjusted EBITDA 50,170  51,163  32,495  16,509  (6,017)  144,320
 Operating earnings (loss) 35,453  42,682  28,066  9,867  (16,641)  99,427
                   
                   
      Asia Investment    
  Americas EMEA Pacific Management Corporate Consolidated
                   
Twelve months ended December 31               
                   
2020                 
 Revenues$1,626,372 $516,507 $470,632 $172,594 $752  $2,786,857
 Adjusted EBITDA 180,427  45,934  66,292  69,488  (699)  361,442
 Operating earnings 121,371  8,336  45,221  40,738  (51,088)  164,578
                   
2019                 
 Revenues$1,690,507 $636,466 $542,609 $174,588 $1,641  $3,045,811
 Adjusted EBITDA 151,347  80,342  76,209  61,907  (10,329)  359,476
 Operating earnings 103,731  48,510  67,062  35,048  (36,154)  218,197
       
 

 
 
 

 
 
 

 
 
 

 

 
 

COMPANY CONTACTS:

Jay S. Hennick
Chairman & Chief Executive Officer

John B. Friedrichsen
Chief Operating Officer 

Christian Mayer
Chief Financial Officer 

(416) 960-9500