Skip to content
AnalystLens

CBRE GROUP, INC. 8-K Report (May 6, 2004)

Reports
Other Events
Filing Date
Filed May 6, 2004
Period End
May 6, 2004
Security
CBRE
In the record · 2016–202610-K1110-Q328-K149

CBRE filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 149 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Mar ’17Mar ’17
  2. Leadership change8-K · Apr ’19Apr ’19
  3. Material agreement8-K · Jul ’21Jul ’21
  4. Leadership change8-K · Aug ’25Aug ’25

01—Abstract

Summary

Summary of the 8-K filed May 6, 2004. Cited figures are marked; the original filing is the authoritative source.

CB Richard Ellis Group, Inc. (CBRE) reported first-quarter 2004 results on May 6, 2004, showing revenue of $441.0 milliona, up 67.2% from $263.7 million a year earlier.

The increase was largely driven by the Insignia Financial Group acquisition, which added revenue across the Americas, EMEA and Asia Pacific segments. Despite the top-line growth, the company posted a net loss of $15.2 millionb, compared with a $1.3 million net loss in Q1 2003, and EBITDA fell 27.8% to $12.3 million, with the EBITDA margin declining to 2.8% from 6.5%. The profit pressure stems mainly from acquisition-related costs.

The company recorded $7.6 millionc of amortization on intangibles from the Insignia deal, which primarily reflects revenue backlog that cannot generate net income, plus $13.1 million of merger and integration charges. EMEA was the weakest segment, with an operating loss of $10.0 million, reflecting integration costs and higher U.K. occupancy expenses after a relocation. Asia Pacific was the bright spot, swinging to operating income of $0.5 million on share gains in Australia.

For investors, the key question is whether the Insignia integration produces the expected cost synergies and whether the one-time charges fade. Leverage is significant: total liabilities were $1.60 billiond against stockholders' equity of $313.5 million at March 31, 2004, with debt including a $295 million term loan, $226 million of 11¼% senior subordinated notes, $200 million of 9¾% senior notes and a $13.3 million revolver draw. The company also held $54.3 million of cash, down from $163.9 million at year-end 2003.

02—Key points

Key Highlights

  1. Revenue rose 67.2% year over year to $441.0 million, driven primarily by the Insignia Financial Group acquisition.
  2. Net loss widened to $15.2 million from $1.3 million, reflecting $7.6 million of acquired-intangible amortization and $13.1 million of merger and integration charges.
  3. EBITDA declined 27.8% to $12.3 million; EBITDA margin fell to 2.8% from 6.5%.
  4. EMEA posted an operating loss of $10.0 million, hurt by integration costs and higher U.K. occupancy expenses after a Q4 2003 facility move.
  5. Americas revenue grew 63.6% to $327.2 million, but operating income dropped to $2.4 million from $11.3 million.
  6. Asia Pacific turned profitable with operating income of $0.5 million, versus a $2.8 million loss a year earlier, on market share gains in Australia.
  7. Leverage is high: total liabilities of $1.60 billion against stockholders' equity of $313.5 million, with cash reduced to $54.3 million from $163.9 million at year-end 2003.

03—Questions

Frequently Asked Questions

  1. Why did revenue grow so much while the company still lost money?

    Revenue growth came largely from the Insignia Financial Group acquisition, which added revenue across all segments. However, the deal also brought $7.6 million of intangible amortization tied to acquired revenue backlog, which generates no net income, and $13.1 million of merger and integration costs. Together these charges more than offset the operating contribution in the quarter.

  2. What is EBITDA, and why did it decline?

    EBITDA is earnings before interest, taxes, depreciation and amortization. It fell 27.8% to $12.3 million, mainly because of the $13.1 million of merger and integration charges tied to Insignia. The company notes that EBITDA is a non-GAAP measure and should be read alongside operating and net income under GAAP.

  3. Which segment is the biggest concern?

    EMEA is the weakest segment, with a $10.0 million operating loss and negative EBITDA of $4.5 million. The drivers were Insignia-related amortization and integration costs, plus higher occupancy expenses in the United Kingdom following a relocation in the fourth quarter of 2003.

  4. How strained is the balance sheet?

    Total liabilities of $1.60 billion far exceed stockholders' equity of $313.5 million. Debt includes a $295 million senior secured term loan, $226 million of 11¼% senior subordinated notes, $200 million of 9¾% senior notes, a $35.8 million 16% senior notes balance, and a $13.3 million revolver draw. Cash fell to $54.3 million from $163.9 million at year-end 2003, which investors should watch closely.

  5. Is there a bright spot in the results?

    Asia Pacific revenue rose 55.5% to $28.4 million and the segment swung to a $0.5 million operating profit from a $2.8 million loss, driven mainly by market share gains in Australia. Americas revenue also grew strongly, although its operating income fell to $2.4 million because of integration and amortization charges.

04—Continue

← View all 8-K filings