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CB Richard Ellis Group Inc. Reports Operating Results (10-Q)

August 09, 2012 | About:
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10qk

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CB Richard Ellis Group Inc. (CBG) filed Quarterly Report for the period ended 2012-06-30.

Cbre Group Inc has a market cap of $5.6 billion; its shares were traded at around $17.93 with a P/E ratio of 15.4 and P/S ratio of 1.

Highlight of Business Operations:

Our revenue on a consolidated basis for the three months ended June 30, 2012 increased by $178.9 million, or 12.6%, as compared to the three months ended June 30, 2011. This increase was driven by contributions from the REIM Acquisitions acquired in the second half of 2011. Increased commercial mortgage brokerage activity (up 35.8%) in our Americas segment as well as higher worldwide sales (up 15.7%) and outsourcing activity (up 9.9%) also contributed to the variance. Foreign currency translation had a $46.2 million negative impact on total revenue during the three months ended June 30, 2012.

Our operating, administrative and other expenses on a consolidated basis increased by $49.5 million, or 11.4%, during the three months ended June 30, 2012 as compared to the three months ended June 30, 2011. The increase was primarily driven by an increase in costs attributable to the REIM Acquisitions, including transaction and integration costs. Foreign currency translation had a $16.2 million positive impact on total operating expenses during the three months ended June 30, 2012. Operating expenses as a percentage of revenue decreased slightly to 30.1% for the three months ended June 30, 2012 from 30.4% for the three months ended June 30, 2011.

Our provision for income taxes on a consolidated basis was $54.8 million for the three months ended June 30, 2012 as compared to $46.3 million for the three months ended June 30, 2011. Our effective tax rate from continuing operations, after adjusting pre-tax income to remove the portion attributable to non-controlling interests, decreased to 41.9% for the three months ended June 30, 2012 as compared to 43.1% for the three months ended June 30, 2011. The changes in our provision for income taxes and our effective tax rate were primarily the result of a change in our mix of domestic and foreign earnings (losses) and a greater impact in the prior year quarter of losses sustained in jurisdictions where no tax benefit could be provided. We currently expect our full year 2012 effective tax rate to be slightly below 40%.

Our revenue on a consolidated basis for the six months ended June 30, 2012 increased by $343.8 million, or 13.2%, as compared to the six months ended June 30, 2011. This increase was driven by contributions from the REIM Acquisitions acquired in the second half of 2011. Increased commercial mortgage brokerage activity (up 39.9%) in our Americas segment as well as higher worldwide sales (up 13.4%) and outsourcing activity (up 9.9%) also contributed to the variance. Foreign currency translation had a $54.5 million negative impact on total revenue during the six months ended June 30, 2012.

Our operating, administrative and other expenses on a consolidated basis increased by $113.2 million, or 14.0%, during the six months ended June 30, 2012 as compared to the six months ended June 30, 2011. The increase was primarily driven by an increase in costs attributable to the REIM Acquisitions, including transaction and integration costs. Foreign currency translation had an $18.9 million positive impact on total operating expenses during the six months ended June 30, 2012. Operating expenses as a percentage of revenue increased slightly to 31.3% for the six months ended June 30, 2012 from 31.1% for the six months ended June 30, 2011.

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