01—Abstract
Summary
Summary of the 10-Q filed August 9, 2012. Cited figures are marked; the original filing is the authoritative source.
CBRE Group, Inc. reported a revenue of $1.60 billiona for the three months ended June 30, 2012, a 12.6% increase compared to the same period in the prior year.
This growth was primarily driven by the contributions from the REIM acquisitions completed in the latter half of 2011. Net income attributable to CBRE Group, Inc. shareholders was $75.9 millionb, an increase from $61.2 million in the prior year's second quarter. For the six-month period ending June 30, 2012, revenue reached $2.95 billion, up 13.2% year-over-year, also significantly boosted by the REIM acquisitions.
Net income attributable to CBRE Group, Inc. shareholders for the first six months was $102.8 million, compared to $95.6 millionc in the same period of 2011. The company's balance sheet reflects a decrease in cash and cash equivalents to $731.2 million from $1.09 billion at the end of 2011, largely due to operating and investing activities.
02—Key points
Key Highlights
- Revenue increased by 12.6% to $1.60 billion for Q2 2012 compared to Q2 2011, driven by REIM acquisitions.
- Net income attributable to CBRE Group, Inc. shareholders rose to $75.9 million in Q2 2012 from $61.2 million in Q2 2011.
- For the first six months of 2012, revenue grew by 13.2% to $2.95 billion, with net income attributable to CBRE Group, Inc. shareholders at $102.8 million.
- Cash and cash equivalents decreased from $1.09 billion at the end of 2011 to $731.2 million as of June 30, 2012.
- Operating income for Q2 2012 was $172.7 million, up from $130.2 million in Q2 2011.
- Interest expense increased by 29.8% in Q2 2012 and 30.1% for the six-month period, primarily due to financing for REIM acquisitions.
- EBITDA increased by 27.5% to $211.8 million for Q2 2012 and by 26.2% to $352.3 million for the first six months of 2012.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2012filed August 9, 2012Financial Statements
Q2 FY2012 against Q2 FY2011
| Line item | Q2 FY2012Q2 FY2011 | Change |
|---|---|---|
| Revenue | $1.60B$1.42B | +12.6% |
| Operating Expenses | $1.43B$1.30B | +10.1% |
| Operating Income | $172.70M$130.18M | +32.7% |
| Interest Expense | $44.41M$34.22M | +29.8% |
| Net Income | $75.87M$61.22M | +23.9% |
| EPS (Basic) | $0.24$0.19 | +26.3% |
| EPS (Diluted) | $0.23$0.19 | +21.1% |
| Shares Outstanding (Basic) | 320.85M317.70M | +1.0% |
| Shares Outstanding (Diluted) | 326.08M324.09M | +0.6% |
05—Questions
Frequently Asked Questions
What was the primary driver of the revenue increase in Q2 2012?
The primary driver of the revenue increase was the contribution from the REIM (Real Estate Investment Management) acquisitions, which were completed in the second half of 2011.
How did the company's debt situation change during this period?
The company's debt levels remained significant, with total debt (excluding certain non-recourse debt) at approximately $2.5 billion as of June 30, 2012. Interest expense increased due to borrowings related to the REIM acquisitions and the establishment of new term loan facilities.
What impact did foreign currency fluctuations have on the financial results?
Foreign currency translation had a negative impact on total revenue, with a $46.2 million negative impact for the three months ended June 30, 2012. However, it had a positive impact on cost of services and operating expenses in certain periods.
What is the company's outlook regarding liquidity and capital resources?
CBRE Group, Inc. believes it can meet its working capital requirements and fund investments with internally generated cash flow and borrowings under its revolving credit facility. They anticipate capital expenditures for the year, including those related to the REIM acquisitions.
06—Continue