Summary
CB Richard Ellis Group, Inc. (CBRE) reported a net loss attributable to shareholders of $12.4 million for the third quarter of 2009, compared to a net income of $40.4 million in the same period of 2008, on revenue that decreased by 21.3% to $1.02 billion. The decline in revenue was primarily attributed to continued challenging global economic conditions impacting sales and leasing activity across all segments. Despite revenue challenges, the company managed to decrease operating, administrative, and other expenses by 19.6% due to cost-reduction measures. The balance sheet showed total assets of $4.48 billion and total liabilities of $4.01 billion as of September 30, 2009. The company's cash position improved significantly to $326.0 million from $158.8 million at the end of 2008, bolstered by equity offerings which helped manage its significant debt load. Financially, CBRE is navigating a challenging macroeconomic environment, characterized by weak commercial real estate markets and tight credit conditions. This is reflected in the year-to-date net loss of $30.9 million. The company has undertaken cost-cutting initiatives and managed its debt structure, including issuing new subordinated notes and repaying term loans, to improve its financial flexibility. Investors should monitor the company's ability to manage its debt covenants and the impact of global economic recovery on its revenue streams.
Financial Highlights
22 data points| Revenue | $1.02B |
| Operating Expenses | $968.98M |
| Operating Income | $56.99M |
| Interest Expense | $54.08M |
| Net Income | $12.38M |
| EPS (Basic) | $0.04 |
| EPS (Diluted) | $0.04 |
| Shares Outstanding (Basic) | 282.73M |
| Shares Outstanding (Diluted) | 285.92M |
Key Highlights
- 1CBRE reported a net loss of $12.4 million for Q3 2009, a significant decrease from a net income of $40.4 million in Q3 2008.
- 2Consolidated revenue for Q3 2009 declined by 21.3% year-over-year to $1.02 billion, primarily due to weak global economic conditions affecting sales and leasing activity.
- 3The company managed to reduce operating, administrative, and other expenses by 19.6% through cost-reduction measures, partially mitigating the impact of lower revenue.
- 4Cash and cash equivalents increased substantially to $326.0 million as of September 30, 2009, up from $158.8 million at December 31, 2008.
- 5The company issued $450 million in senior subordinated notes in June 2009 and repaid substantial amounts on its senior secured term loans, indicating active debt management.
- 6Goodwill and intangible assets remain significant at $1.31 billion and $320 million respectively, though the company had significant impairment charges in the prior year.
- 7The company continues to be highly leveraged, with total debt (excluding notes payable on real estate and warehouse lines of credit) around $2.2 billion as of September 30, 2009.