01—Abstract
Summary
Summary of the 10-K filed March 27, 2002. Cited figures are marked; the original filing is the authoritative source.
This 10-K report for CBRE Holding, Inc. for the fiscal year ended December 31, 2001, details a significant year marked by the acquisition of CB Richard Ellis Services, Inc. (CBRE) on July 20, 2001.
This merger transformed the company's structure and financial position, leading to a consolidated net loss of $16.6 milliona for the year on revenue of $1.17 billion, a decrease from the previous year's revenue of $1.32 billion. The company experienced a decline in revenue across its global segments, particularly in the Americas, attributed to a slowdown in the global economy and the impact of the September 11th terrorist attacks. Significant merger-related costs, severance expenses, and the write-off of e-investments also impacted profitability.
Despite these challenges, the company's management implemented cost-cutting measures and operational efficiencies post-merger. The report highlights substantial leverage following the merger, with significant debt service obligations, and outlines various risk factors including economic downturns, competition, and international operational risks.
02—Key points
Key Highlights
- CBRE Holding, Inc. acquired CB Richard Ellis Services, Inc. (CBRE) on July 20, 2001, significantly altering its corporate structure and financial statements.
- Consolidated revenue for the year ended December 31, 2001, was $1.17 billion, a decrease of 11.5% compared to $1.32 billion in 2000, impacted by a slowdown in global economic conditions.
- The company reported a consolidated net loss of $16.6 million for 2001, compared to a net income of $33.4 million in 2000.
- Operating income decreased to $48.6 million in 2001 from $107.3 million in 2000, impacted by lower revenues and merger-related charges.
- The company is highly leveraged following the merger, with long-term debt totaling $522.1 million at December 31, 2001.
- Risk factors include significant dependence on general economic conditions, substantial debt service obligations, strong competition, and risks associated with international operations and currency fluctuations.
- The company operates through three geographic segments: The Americas, Europe, Middle East, and Africa (EMEA), and Asia Pacific.
03—Questions
Frequently Asked Questions
What was the main event impacting CBRE Holding, Inc. in the fiscal year 2001?
The most significant event was the acquisition of CB Richard Ellis Services, Inc. (CBRE) on July 20, 2001. This merger combined the operations and financials of the two entities.
How did the acquisition of CBRE affect the company's financial performance in 2001?
The acquisition led to a consolidated net loss of $16.6 million on $1.17 billion in revenue for 2001, a substantial decrease in profitability compared to the prior year. This was due to factors including merger-related costs, severance expenses, and a general economic slowdown impacting revenues across segments.
What is the company's debt situation following the merger?
The company is highly leveraged after the merger, with long-term debt totaling $522.1 million as of December 31, 2001. The debt structure includes senior subordinated notes, senior secured term loans, and senior notes, all with significant interest payment obligations.
How did the company's global operations perform in 2001?
Revenue decreased across all segments (The Americas, EMEA, and Asia Pacific) compared to 2000. The Americas segment experienced the most significant decline, with lower sales and lease revenue. EMEA and Asia Pacific also saw reduced revenue due to weaker economic conditions in those regions.
04—Continue