CBRE reports strong financial results for the second quarter ended June 30, 2016.
According to the report revenue for the quarter totaled $3.2 billion, an increase of 34% (35% local currency). Fee revenue increased 19% (20% local currency) to $2.1 billion.
Second-Quarter 2016 Results*
- Revenue for the second quarter totaled $3.2 billion, an increase of 34% (35% local currency1).
Fee revenue2 increased 19% (20% local currency) to $2.1 billion. The second quarter of 2016
included approximately $690 million of revenue from the acquired Global Workplace Solutions
business. Excluding the acquired Global Workplace Solutions business, revenue was up 5% (6%
local currency) and fee revenue was up 3% (4% local currency). - On a GAAP basis, net income and earnings per diluted share decreased to $121.7 million and
$0.36 per share, respectively. GAAP net income for the second quarter of 2016 was reduced by
$27.8 million (pre-tax) of integration costs associated with the Global Workplace Solutions
acquisition; $27.2 million (pre-tax) incurred in the previously announced cost-elimination
program; and $26.6 million (pre-tax) of acquisition-related non-cash amortization. These costs
were partially offset by an associated tax benefit of $23.9 million. - Adjusted net income3 rose 25% to $174.9 million, while adjusted earnings per share3 improved
24% to $0.52 per share. - Foreign currency movement, primarily the impact of marking-to-market of currency hedges,
increased current-quarter earnings per share by approximately $0.01 per share. For the second
quarter of 2015 this impact reduced earnings per share by approximately $0.03. - EBITDA4 rose 4% to $309.9 million and adjusted EBITDA4 increased 19% to $360.5 million. EBITDA and adjusted EBITDA were both positively impacted by $4.1 million of currency movement, primarily the marking-to-market of currency hedges in the second quarter of 2016. EBITDA and adjusted EBITDA were both negatively impacted by $13.9 million of currency movement, primarily the marking-to-market of currency hedges in the second quarter of 2015.
- Adjusted EBITDA margin on fee revenue was 17.0%.
*All percentage changes versus prior-year periods throughout this press release are in U.S. dollars, except
where noted.
