What is the company's financial performance trend for the reported periods?

CBRE Holding, Inc. has shown a significant positive trend in profitability. The company moved from net losses in the comparable periods of 2001 to net income in the nine months and third quarter of 2002. This improvement is attributed to revenue growth in key areas and effective cost management.

How has the merger with CB Richard Ellis Services, Inc. impacted the financial statements?

The merger in July 2001 significantly impacted the financial statements. The company adopted purchase accounting, and the historical results of CB Richard Ellis Services, Inc. are presented as the 'Predecessor'. The adoption of SFAS No. 142 also eliminated goodwill amortization, positively affecting net income in the current periods.

What is the company's debt situation and how is it managed?

CBRE Holding, Inc. carries substantial long-term debt, including senior subordinated notes and senior secured term loans, totaling $513.16 million as of September 30, 2002. The company manages interest expense by using a combination of fixed and variable rate debt and aims to satisfy obligations through internally generated cash flow and borrowings under its credit facilities. However, restrictive covenants in debt agreements limit operational flexibility.

Are there any significant risks or uncertainties highlighted in the report?

The company faces market risks primarily related to foreign currency exchange rate fluctuations and interest rate changes. While foreign currency risk is considered not material, a hypothetical 51 basis point increase in interest rates could decrease pre-tax income by $1.3 million. The report also mentions that forward-looking statements are subject to various known and unknown risks and uncertainties, including economic conditions and real estate market dynamics.

CBRE 10-Q Quarterly Report Q3 FY2002 — Revenue, Net Income, EPS

Summary

CBRE Holding, Inc. reported a net income of $1.9 million for the third quarter of 2002, a significant improvement from the net loss of $27.7 million in the comparable period of 2001. This turnaround was driven by a 3.2% increase in revenue to $284.9 million, primarily fueled by higher sales transaction revenue in the Americas and increased consulting fees globally, though lease transaction revenue saw a decline. The company also benefited from cost-saving measures and the discontinuation of goodwill amortization due to SFAS No. 142. For the first nine months of 2002, CBRE Holding, Inc. reported a net income of $3.6 million, a substantial rebound from the $32.8 million net loss in the same period of 2001. While overall revenue decreased by 4.8% to $793.8 million, operational efficiencies and strategic cost reductions, including a 8.3% decrease in operating, administrative, and other expenses, contributed to the improved profitability. The company continues to manage a significant debt load, with total long-term debt standing at $513.16 million as of September 30, 2002.

Key Highlights

1Net income for Q3 2002 was $1.9 million, a substantial recovery from a net loss of $1.978 million in Q3 2001.
2Nine-month net income was $3.6 million, a marked improvement from a nine-month net loss of $34.0 million in 2001.
3Total revenue for Q3 2002 increased by 3.2% year-over-year to $284.9 million, driven by sales transaction revenue and consulting fees.
4Operating, administrative, and other expenses decreased by 8.3% for the nine-month period, reflecting cost-saving measures.
5Goodwill and other intangible assets remain significant, with goodwill at $581.7 million and other intangible assets at $91.9 million as of September 30, 2002.
6Total long-term debt stands at $513.16 million as of September 30, 2002, with significant interest expenses incurred.
7The company has reorganized its operations into three geographically organized segments: Americas, EMEA, and Asia Pacific.

CBRE GROUP, INC. Quarterly Report for Q3 Ended Sep 30, 2002

Summary

Key Highlights

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