04
February
2011
|
00:00
Europe/Amsterdam

CB RICHARD ELLIS GROUP, INC. REPORTS STRONG EARNINGS

EARNINGS PER SHARE RISE 29% FOR THE QUARTER AND 92% FOR ALL OF 2010; REVENUE GROWS 27% FOR THE QUARTER AND 23% FOR THE FULL YEAR

Los Angeles, CA – February 3, 2011 — CB Richard Ellis Group, Inc. (NYSE:CBG) today reported strong earnings and revenue growth for the fourth quarter and year ended December 31, 2010.

Fourth-Quarter 2010 Results
• Net income on a U.S. GAAP basis improved 48% to $95.1 million, or $0.30 per diluted share, for the fourth quarter, compared with $64.3 million, or $0.21 per diluted share, for the fourth quarter of 2009.

• Excluding selected charges1, net income2 would have totaled $115.4 million, or $0.36 per diluted share, for the current-year quarter, an increase of 34% compared with net income of $86.0 million, or $0.28 per diluted share, in the fourth quarter of 2009.

• Earnings Before Interest Taxes Depreciation and Amortization (EBITDA)3 rose 44% to $241.0 million for the fourth quarter of 2010 from $167.1 million a year earlier. Excluding selected charges, EBITDA3 rose 27% to $253.1 million in the current period from $199.0 million in the fourth quarter of 2009. This is tied for the second-best quarterly performance in the Company’s history.

• Revenue for the quarter totaled $1.7 billion, an increase of 27% from $1.3 billion in the fourth quarter of 2009. This represents the strongest year-over-year quarterly revenue growth since the fourth quarter of 2007.

Full-Year 2010 Results
• Net income on a U.S. GAAP basis jumped 501% to $200.3 million, or $0.63 per diluted share, for 2010, compared with $33.3 million, or $0.12 per diluted share, for 2009.

• Excluding selected charges, net income for 2010 would have totaled $239.8 million, or $0.75 per diluted share, an improvement of 118% from $109.8 million, or $0.39 per diluted share, for 2009.

• EBITDA for 2010 rose 74% to $647.5 million, compared with $372.1 million for 2009. Excluding selected charges, EBITDA would have totaled $681.3 million in 2010 -- up 50% from $453.9 million in 2009.

• Revenue for the current year increased 23% to $5.1 billion, compared with $4.2 billion for 2009.

Management Commentary
“The increasing pace of market recovery in 2010 was well matched to CB Richard Ellis’ strengths of people, brand and platform,” said Brett White, the Company’s chief executive officer. “Our professionals around the world executed extremely well and drove our second-most profitable year ever, punctuated by sizable increases in activity across virtually all business lines in the final quarter. We believe the market remains in the early stages of recovery, and we enter 2011 with excellent momentum in most business lines globally.”

The Company posted double-digit revenue gains in the fourth quarter in every global business line except Development Services. Global property sales and leasing activity were particularly strong. Global leasing revenue grew by 35% compared with the fourth quarter of 2009 as market fundamentals continued to stabilize and demand for space rebounded. The strong growth was buoyed by the Company’s leading market position in the world’s major business centers. For example, during the fourth quarter, CB Richard Ellis arranged a 450,000 square foot headquarters lease for Société Générale -- the largest office lease in New York City in 2010.

Global sales revenue improved 40% from the year-earlier fourth quarter, as credit availability broadened further and investor sentiment improved. This strong increase is particularly noteworthy because sales volumes had begun to rebound in late 2009 from the depressed levels earlier that year, making for tougher year-over-year comparisons in the current-year quarter.


Outsourcing revenue, which includes property and facilities management, improved by 10%, led by the Americas, which benefited from continued expansion of its client base. The Company continued to sign outsourcing contracts globally at an exceptionally strong pace. A total of 34 long-term contracts were signed in the fourth quarter, matching the record level achieved in the second quarter of 2010. This total included 18 new outsourcing clients – such as AIG, Allianz Firemen’s Fund, the City of Sacramento, Dentsu, Education Management LLC, the U.S. General Services Administration, Metro AG, and Tahitian Noni International – and 16 existing contract renewals or expansions.

Geographically, revenue growth was led by the Americas. This business segment -- the Company’s largest – saw revenue rise 35%, powered by robust growth in both property sales (66%) and leasing (45%). Revenue rose 18% in Asia Pacific, paced by strong increases in India and China. EMEA revenue rose by 7%, driven by continued strong growth in property sales in core markets, particularly in the U.K. and France. This was partially offset by more modest activity across other business lines, consistent with general economic conditions in the region. Significantly improved performance in the Global Investment Management business also contributed to the Company’s strong results for the fourth quarter.

During the fourth quarter, EBITDA in the Americas Region was negatively impacted by approximately $30 million due to the reinstatement of discretionary incentive compensation earlier than anticipated, yet is within the previously-announced parameters for such cost reinstatements over time. This decision was made in light of the very strong financial performance in this segment and the Company overall.


Please see the PDF link further below for Fourth-Quarter 2010 Segment Results.

About CB Richard Ellis
CB Richard Ellis Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2010 revenue). The Company has approximately 31,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CB Richard Ellis offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our Web site at www.cbre.com.



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