CBRE Group (CBRE) Q4 2013 earnings summary

Executive summary

• FY13 revenue grew 10.3% to $7.18B, led by worldwide sales, property/facilities/project management and leasing; net income attributable to shareholders was $316.5M.

• Results benefited from stronger transaction activity and carried interest; foreign currency translation reduced revenue by $73.4M.

• Fee-for-services activities represented 41% of revenue, while activity and earnings remained seasonal, typically strongest in H2 and Q4.

Financial highlights

• FY13 revenue was $7.185B, up 10.3% YoY; operating income was $616.1M versus $585.1M in FY12.

• FY13 net income attributable to shareholders was $316.5M versus $315.6M; diluted EPS was $0.95 versus $0.97.

• Net cash from operating activities rose to $745.1M from $291.1M; investing cash use was $465.0M and financing cash use was $866.3M.

• Q4 revenue was $2.234B, operating income $187.6M, attributable net income $114.6M and diluted EPS $0.34.

Outlook and guidance

• 2014 anticipated net capital expenditures were up to $185M; operating cash flow and the revolving facility were expected to cover cash needs for at least the next 12 months.

• Further recovery in sales, leasing, investment management and development depends on stronger growth and job creation, healthy credit markets, and improved business and investor sentiment.

• Development projects in process reached $4.9B at year-end, up 16.7% YoY; pipeline deals were $1.5B, down 28.6%.