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

CB Richard Ellis Group Inc. (CBG, Financial) filed Quarterly Report for the period ended 2010-06-30.

Cb Richard Ellis Group Inc. has a market cap of $5.46 billion; its shares were traded at around $16.97 with a P/E ratio of 32.02 and P/S ratio of 1.31. Cb Richard Ellis Group Inc. had an annual average earning growth of 0.4% over the past 5 years.CBG is in the portfolios of Richard Blum of Blum Capital Partners, John Rogers of ARIEL CAPITAL MANAGEMENT LLC, Ron Baron of Baron Funds, John Paulson of Paulson & Co., Murray Stahl of Horizon Asset Management, Steven Cohen of SAC Capital Advisors, Stanley Druckenmiller of Duquesne Capital Management, LLC, Manning & Napier Advisors, Inc, Jim Simons of Renaissance Technologies LLC, Jeremy Grantham of GMO LLC.

Highlight of Business Operations:

Although our management believes that strategic acquisitions can significantly decrease the cost, time and commitment of management resources necessary to attain a meaningful competitive position within targeted markets or to expand our presence within our current markets, our management also believes that most acquisitions will initially have an adverse impact on our operating and net income, both as a result of transaction-related expenditures and the charges and costs of integrating the acquired business and its financial and accounting systems into our own. For example, we incurred $200.9 million of transaction-related expenditures in connection with our acquisition of Insignia in 2003 (the Insignia Acquisition) and $196.6 million of transaction-related expenditures in connection with our acquisition of Trammell Crow Company in 2006. These transaction-related expenditures included severance costs, lease termination costs, transaction costs, deferred financing costs and merger-related costs, among others. We incurred our final transaction expenditures with respect to the Insignia Acquisition in the third quarter of 2004 and the Trammell Crow Company Acquisition in the fourth quarter of 2007. In addition, through June 30, 2010, we have incurred expenses of $41.9 million related to Insignia and $60.5 million related to Trammell Crow Company in connection with the integration of these companies business lines, as well as accounting and other systems, into our own. During the six months ended June 30, 2010, we incurred $2.0 million of integration expenses, the majority of which were related to the acquisition of Trammell Crow Company. We expect to incur total integration expenses relating to past acquisitions of approximately $5 million during 2010, which primarily include residual integration costs associated with our acquisition of Trammell Crow Company.

On February 5, 2010 and March 29, 2010, we entered into loan modification agreements to our credit agreement, which extended the maturity and amortization schedules on $139.1 million of our term loans and $132.5 million of our revolving credit facility capacity. Since August 2009, we have extended the maturity and amortization schedules on approximately $1.3 billion of debt. During the six months ended June 30, 2010, we repaid $60.8 million of our senior secured term loans outstanding under our credit agreement. In addition, on July 1, 2010, we prepaid $150.0 million of our term B senior secured term loans, which will result in interest expense savings, not only on the prepaid debt, but also on all of our remaining term B senior secured term loans outstanding by 50 basis points. All of these actions have given us increased flexibility and significantly extended the weighted average maturity of our outstanding debt.

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