Summary
CB Richard Ellis Group, Inc. (CBRE) reported a net loss of $6.6 million for the second quarter of 2009, a significant downturn from a net income of $16.6 million in the same period of the previous year. This loss was driven by a substantial 27.3% decrease in revenue, totaling $955.7 million, attributed to the ongoing challenging global economic conditions affecting sales and leasing activities. Despite cost-reduction measures that lowered operating expenses as a percentage of revenue, the decline in top-line performance and increased interest expenses related to new debt issuances led to the overall net loss. The company's balance sheet shows a decrease in total assets from $4.73 billion to $4.42 billion, largely due to a reduction in current assets like receivables and inventory. Total liabilities also decreased, primarily driven by lower current liabilities, including short-term borrowings and current maturities of long-term debt. The company raised capital through equity offerings in June 2009, which helped bolster its cash position, increasing cash and cash equivalents to $309.5 million from $158.8 million at the end of 2008.
Financial Highlights
22 data points| Revenue | $955.67M |
| Operating Expenses | $919.67M |
| Operating Income | $38.92M |
| Interest Expense | $47.42M |
| Net Income | -$6.64M |
| EPS (Basic) | $-0.02 |
| EPS (Diluted) | $-0.02 |
| Shares Outstanding (Basic) | 265.68M |
| Shares Outstanding (Diluted) | 265.68M |
Key Highlights
- 1Reported a net loss of $6.6 million for Q2 2009, compared to a net income of $16.6 million in Q2 2008.
- 2Revenue decreased by 27.3% year-over-year to $955.7 million, reflecting the impact of challenging global economic conditions on sales and leasing activities.
- 3Operating, administrative, and other expenses decreased by 29.9% due to cost-saving initiatives, which improved the operating expense ratio.
- 4Interest expense increased by 14.1% year-over-year, impacted by new debt issuances, including $450 million in senior subordinated notes.
- 5Cash and cash equivalents significantly increased to $309.5 million as of June 30, 2009, from $158.8 million as of December 31, 2008, partly due to equity offerings.
- 6Total assets decreased to $4.42 billion from $4.73 billion, reflecting a decline in current assets.
- 7The company continues to manage its leverage, with total debt (excluding warehouse lines) at $2.3 billion as of June 30, 2009.