GlobeNewswire Inc | Aug 6, 2020 07:01AM EDT

August 06, 2020

Investment Management, Outsourcing & Advisory demonstrate resilience, diversification

Operating highlights:

Three months ended Six months ended June 30 June 30(in millions of US$, except 2020 2019 2020 2019EPS) Revenues $ 550.2 $ 745.5 $ 1,180.8 $ 1,380.6Adjusted EBITDA (note 1) 60.0 87.3 114.4 130.9Adjusted EPS (note 2) 0.70 1.10 1.25 1.61 GAAP operating earnings 14.5 57.2 33.1 70.6GAAP EPS (0.26 ) 0.60 (0.14 ) 0.63

TORONTO, Aug. 06, 2020 (GLOBE NEWSWIRE) -- Colliers International Group Inc. (NASDAQ and TSX: CIGI) today announced operating and financial results for the quarter ended June 30, 2020, which were significantly impacted by the global COVID-19 pandemic. All amounts are in US dollars.

For the second quarter ended June 30, 2020, revenues were $550.2 million, down 26% (25% in local currency) relative to the same quarter in the prior year, adjusted EBITDA (note 1) was $60.0 million, down 31% (30% in local currency) and adjusted EPS (note 2) was $0.70, down 36% versus the prior year period. Second quarter adjusted EPS would have been approximately $0.02 higher excluding foreign exchange impacts. GAAP operating earnings were $14.5 million, relative to $57.2 million in the prior year quarter. GAAP EPS was a loss of $0.26 per share, relative to $0.60 per share in the prior year quarter. Second quarter GAAP EPS would have been approximately $0.02 higher excluding changes in foreign exchange rates.

For the six months ended June 30, 2020, revenues were $1.18 billion, down 14% (13% in local currency) relative to the same period in the prior year, adjusted EBITDA (note 1) was $114.4 million, down 13% (11% in local currency) and adjusted EPS (note 2) was $1.25, down 22% versus the prior year period. Year-to-date adjusted EPS would have been approximately $0.04 higher excluding foreign exchange impacts. GAAP operating earnings were $33.1 million, relative to $70.6 million in the prior year period. GAAP EPS for the six month period was a loss of $0.14 per share, relative to $0.63 per share in the prior year period. Second quarter GAAP EPS would have been approximately $0.04 higher excluding changes in foreign exchange rates.

Colliers reported better than expected results across all segments and regions during the second quarter despite the unprecedented impact of COVID-19, especially in Leasing and Capital Markets. Fortunately, the majority of our earnings now come from Investment Management and Outsourcing & Advisory high value-add professional services that are recurring and contractual providing us with more resilience and service line diversification than ever, said Jay S. Hennick, Global Chairman and CEO of Colliers International. Pandemic uncertainty in Leasing and Capital Markets continue to impact our results, though we expect gradual improvement for the balance of the year. During the quarter, we completed a $230 million offering of convertible notes to fortify our balance sheet and completed the acquisitions of Dougherty,a US commercial real estate debt finance, loan servicing and securities platform (now rebranded as Colliers Mortgage) and Maser Consulting, a leading US engineering design and service firm focused on real estate assets and related infrastructure. With a highly diversified and balanced global business, strong balance sheet, entrepreneurial culture, and significant insider ownership, we are confident that Colliers will emerge from this crisis stronger than ever, he concluded.

About Colliers International Group Inc.Colliers International (NASDAQ, TSX: CIGI) is a leading real estate professional services and investment management company. With operations in 68 countries, our more than 15,000 enterprising professionals work collaboratively to provide expert advice to maximize the value of property for real estate occupiers, owners and investors. For more than 25 years, our experienced leadership, owning approximately 40% of our equity, has delivered compound annual investment returns of almost 20% for shareholders. In 2019, corporate revenues were more than $3.0 billion ($3.5 billion including affiliates), with $33 billion of assets under management in our investment management segment.

Learn more about how we accelerate success at corporate.colliers.com, Twitter @Colliers or LinkedIn.

Consolidated Revenues by Line of ServiceWith the closing of Colliers Mortgage acquisition, Colliers has renamed its Sales Brokerage service line to Capital Markets, which now includes sales brokerage, mortgage origination and mortgage investment banking revenues. In addition, the Company added mortgage loan servicing under its Outsourcing & Advisory revenues.

Three months ended Six months ended (inthousands June 30 Change Change June 30 Change Changeof US$)(LC = local 2020 2019 in US$ in LC% 2020 2019 in US$ in LC%currency) % % Outsourcing $ 257,044 $ 281,638 -9% -6% $ 534,334 $ 540,022 -1% 1%& AdvisoryInvestment 41,389 46,902 -12% -12% 87,214 89,992 -3% -3%ManagementLeasing 136,768 253,374 -46% -45% 301,278 435,158 -31% -30%Capital 115,005 163,603 -30% -28% 258,008 315,468 -18% -17%MarketsTotal $ 550,206 $ 745,517 -26% -25% $ 1,180,834 $ 1,380,640 -14% -13%revenues

Consolidated revenues for the second quarter declined 25% on a local currency basis, driven primarily by expected declines in transactional Leasing and Capital Markets activity due to the COVID-19 pandemic. Consolidated internal revenues measured in local currencies were down 26% (note 3).

For the six months ended June 30, 2020, consolidated revenues declined 13% on a local currency basis, with the impact of the pandemic beginning in March 2020. Consolidated internal revenues measured in local currencies were down 15% (note 3).

Segmented Quarterly ResultsRevenues in the Americas region totalled $308.9 million for the second quarter compared to $421.4 million in the prior year quarter, down 27% (26% in local currency) on reduced Leasing and Capital Markets activity across the region. Outsourcing & Advisory revenues were flat in the quarter. Adjusted EBITDA was $24.4 million, versus $36.2 million in the prior year quarter. GAAP operating earnings were $3.4 million, relative to $25.6 million in the prior year quarter.

Revenues in the EMEA region totalled $99.6 million for the second quarter compared to $151.6 million in the prior year quarter, down 34% (32% in local currency) on lower activity in each service line, including Outsourcing & Advisory which was impacted by delays in executing on-site turnkey project management assignments due to the pandemic. Adjusted EBITDA was $6.3 million, versus $19.0 million in the prior year. GAAP operating earnings were a loss of $3.3 million as compared to $10.8 million in the second quarter of 2019.

Revenues in the Asia Pacific region totalled $100.1 million for the second quarter compared to $125.1 million in the prior year quarter, down 20% (16% in local currency) on lower Leasing and Capital Markets activity. Outsourcing & Advisory revenues were up slightly in the quarter, including incremental revenues from the recent Synergy acquisition, now rebranded as Colliers Project Leaders. Adjusted EBITDA was $12.3 million, down from $14.2 million. GAAP operating earnings were $5.1 million, down from $12.5 million in the prior year quarter.

Investment Management revenues for the second quarter were $41.4 million compared to $46.9 million in the prior year quarter, down 12% (12% in local currency). The second quarter revenue decline was primarily attributable to a $4.3 million reduction in pass-through revenue from legacy carried interest versus the prior year quarter. Adjusted EBITDA was $17.4 million relative to $19.2 million in the prior year quarter, attributable to the timing of certain European transaction fees, which were elevated in the prior year quarter. GAAP operating earnings were $10.6 million in the quarter, versus $12.2 million in the prior year quarter. Assets under management were $35.7 billion at June 30, 2020, up 2% from $35.1 billion at March 31, 2020 and up 18% from $30.3 billion at June 30, 2019.

Unallocated global corporate costs as reported in Adjusted EBITDA were $0.3 million in the second quarter, relative to $1.3 million in the prior year quarter, and were favourably impacted by lower insurance costs and lower variable expenses. The corporate GAAP operating loss for the quarter was $1.4 million, relative to $4.1 million in the second quarter of 2019.

Impact of COVID-19 PandemicThe full impact of the pandemic continues to remain uncertain. The Company is updating the working assumption previously provided to reflect: (i) better than anticipated results for the second quarter across all service lines and regions; and (ii) the recently completed acquisitions of Colliers Mortgage and Maser Consulting. The updated working assumption for the full year 2020 (relative to 2019), is as follows:

Previous Updated Add Updated with acquisitions acquisitionsRevenue -15% to -15% to +5% -10% to -20% -25% -25%Adjusted -25% to -20% to +5% -15% to -25%EBITDA -35% -30%

This working assumption is based on the best available information and is subject to change based on numerous macroeconomic, health, social, political and related factors.

Transactional Leasing and Capital Markets revenues are expected to remain below 2019 levels, although the scale of decline should moderate in the third and fourth quarters. Investment Management and Outsourcing & Advisory are expected to remain relatively stable for the balance of the year with some variability depending on market conditions.

The Company has taken significant steps to adjust costs to expected revenues across all service lines, including reductions to support, administrative and leadership and related costs. Expenses incurred in connection with these reductions are recorded as restructuring costs (note 1) and were substantially all severance related. The Company may take further cost reduction measures in future quarters.

The Company received wage subsidies totalling $10.2 million during the second quarter ended June 30, 2020 from governments in several countries. These subsidies were recorded in earnings as a modest offset to employment costs in cost of revenues. The Company may receive further government wage subsidies in future quarters.

Convertible Notes Offering and LiquidityOn May 19, 2020, the Company completed an offering of $230 million of 4% Convertible Senior Subordinated Notes due 2025 (the Convertible Notes) for $223.8 million in net proceeds. The Convertible Notes are unsecured and subordinated to all of the Companys existing and future senior and/or secured indebtedness, and are treated as equity for financial leverage ratios under the Companys existing debt agreements. The Convertible Notes are convertible into 3.97 million subordinate voting shares or, if not converted, may be settled at maturity with subordinate voting shares or in cash, at the option of Colliers.

As of June 30, 2020, the Companys financial leverage ratio expressed in terms of net debt to pro forma Adjusted EBITDA was 1.5x (down from 1.7x from the same quarter in 2019), relative to a maximum of 3.5x permitted under its debt agreements. As of the same date, the Company had $608 million of unused credit under its committed revolving credit facility maturing in April 2024.

AcquisitionsThe Company completed the acquisition of a controlling interest in Colliers Mortgage on May 29, 2020 and Maser Consulting after the end of the second quarter, on July 13, 2020. These acquisitions are expected to generate significant incremental recurring revenue streams. The combined purchase price approximated the proceeds from the Convertible Notes offering, and the earnings from these acquisitions are expected to more than offset dilution from the Convertible Notes.

Conference CallColliers will be holding a conference call on Thursday, August 6, 2020 at 11:00 a.m. Eastern Time to discuss the quarters results. The call, as well as a supplemental slide presentation, will be simultaneously web cast and can be accessed live or after the call at corporate.colliers.com in the Events section.

Forward-looking StatementsThis press release includes or may include forward-looking statements. Forward-looking statements include the Companys financial performance outlook and statements regarding goals, beliefs, strategies, objectives, plans or current expectations. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from any future results, performance or achievements contemplated in the forward-looking statements. Such factors include: economic conditions, especially as they relate to commercial and consumer credit conditions and consumer spending, particularly in regions where our business may be concentrated; commercial real estate property values, vacancy rates and general conditions of financial liquidity for real estate transactions; trends in pricing and risk assumption for commercial real estate services; the effect of significant movements in average capitalization rates across different property types; a reduction by companies in their reliance on outsourcing for their commercial real estate needs, which would affect revenues and operating performance; competition in the markets served by the Company; the ability to attract new clients and to retain major clients and renew related contracts; the ability to retain and incentivize producers; increases in wage and benefit costs; the effects of changes in interest rates on the cost of borrowing; unexpected increases in operating costs, such as insurance, workers compensation and health care; changes in the frequency or severity of insurance incidents relative to historical experience; the effects of changes in foreign exchange rates in relation to the US dollar on the Companys Canadian dollar, Euro, Australian dollar and UK pound sterling denominated revenues and expenses; the impact of pandemics on client demand for the Companys services, the ability of the Company to deliver its services and the health and productivity of its employees; the impact of political events including elections, referenda, trade policy changes, immigration policy changes, hostilities and terrorism on the Companys operations; the ability to identify and make acquisitions at reasonable prices and successfully integrate acquired operations; the ability to execute on, and adapt to, information technology strategies and trends; the ability to comply with laws and regulations related to our global operations, including real estate and mortgage banking licensure, labour and employment laws and regulations, as well as the anti-corruption laws and trade sanctions; and changes in government laws and policies at the federal, state/provincial or local level that may adversely impact the business.

Additional information and risk factors are identified in the Companys other periodic filings with Canadian and US securities regulators (which factors are adopted herein and a copy of which can be obtained at www.sedar.com). Forward-looking statements contained in this press release are made as of the date hereof and are subject to change. All forward-looking statements in this press release are qualified by these cautionary statements. Except as required by applicable law, Colliers undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Summary financial information is provided in this press release. This press release should be read in conjunction with the Company's annual consolidated financial statements and MD&A to be made available on SEDAR at www.sedar.com.

Notes1. Reconciliation of net earnings to adjusted EBITDA:

Adjusted EBITDA is defined as net earnings, adjusted to exclude: (i) income tax; (ii) other expense (income) other than equity earnings from non-consolidated investments; (iii) interest expense; (iv) depreciation and amortization, including amortization of mortgage servicing rights (MSRs); (v) gains attributable to MSRs; (vi) acquisition-related items (including transaction costs, contingent acquisition consideration fair value adjustments and contingent acquisition consideration-related compensation expense); (vii) restructuring costs and (viii) stock-based compensation expense. We use adjusted EBITDA to evaluate our own operating performance and our ability to service debt, as well as an integral part of our planning and reporting systems. Additionally, we use this measure in conjunction with discounted cash flow models to determine the Companys overall enterprise valuation and to evaluate acquisition targets. We present adjusted EBITDA as a supplemental measure because we believe such measure is useful to investors as a reasonable indicator of operating performance because of the low capital intensity of the Companys service operations. We believe this measure is a financial metric used by many investors to compare companies, especially in the services industry. This measure is not a recognized measure of financial performance under GAAP in the United States, and should not be considered as a substitute for operating earnings, net earnings or cash flow from operating activities, as determined in accordance with GAAP. Our method of calculating adjusted EBITDA may differ from other issuers and accordingly, this measure may not be comparable to measures used by other issuers. A reconciliation of net earnings to adjusted EBITDA appears below.

Three months ended Six months ended(in thousands of June 30 June 30US$) 2020 2019 2020 2019 Net earnings $ 6,483 $ 35,575 $ 12,942 $ 41,039 Income tax 2,127 13,187 7,326 14,402 Other income, net (266 ) 179 (970 ) (322 )Interest expense, 6,179 8,257 13,763 15,476 netOperating earnings 14,523 57,198 33,061 70,595 Depreciation and 25,940 23,778 50,830 46,447 amortizationGains attributable (509 ) - (509 ) - to MSRsEquity earningsfrom 414 - 969 - non-consolidatedinvestmentsAcquisition-related 3,784 5,263 6,534 9,898 itemsRestructuring costs 13,839 275 19,307 314 Stock-basedcompensation 1,971 809 4,224 3,640 expenseAdjusted EBITDA $ 59,962 $ 87,323 $ 114,416 $ 130,894

2. Reconciliation of net earnings and diluted net earnings per common share to adjusted net earnings and adjusted EPS:

Adjusted EPS is defined as diluted net earnings per share as calculated under the If-Converted method, adjusted for the effect, after income tax, of: (i) the non-controlling interest redemption increment; (ii) amortization expense related to intangible assets recognized in connection with acquisitions and MSRs; (iii) gains attributable to MSRs; (iv) acquisition-related items; (v) restructuring costs and (vi) stock-based compensation expense. We believe this measure is useful to investors because it provides a supplemental way to understand the underlying operating performance of the Company and enhances the comparability of operating results from period to period. Adjusted EPS is not a recognized measure of financial performance under GAAP, and should not be considered as a substitute for diluted net earnings per share from continuing operations, as determined in accordance with GAAP. Our method of calculating this non-GAAP measure may differ from other issuers and, accordingly, this measure may not be comparable to measures used by other issuers. A reconciliation of net earnings to adjusted net earnings and of diluted net earnings per share to adjusted EPS appears below.

Three months ended Six months ended(in thousands of June 30 June 30US$) 2020 2019 2020 2019 Net earnings $ 6,483 $ 35,575 $ 12,942 $ 41,039 Non-controllinginterest share of (4,265 ) (6,586 ) (7,642 ) (7,831 )earningsInterest on 1,059 - 1,059 - Convertible NotesAmortization of 17,089 15,238 33,101 29,958 intangible assetsGains attributable (509 ) - (509 ) - to MSRsAcquisition-related 3,784 5,263 6,534 9,898 itemsRestructuring costs 13,839 275 19,307 314 Stock-basedcompensation 1,971 809 4,224 3,640 expenseIncome tax on (7,442 ) (4,212 ) (13,247 ) (8,216 )adjustmentsNon-controllinginterest on (2,447 ) (2,346 ) (4,597 ) (4,592 )adjustmentsAdjusted net $ 29,562 $ 44,016 $ 51,172 $ 64,210 earnings Three months ended Six months ended(in US$) June 30 June 30 2020 2019 2020 2019 Diluted net (loss)earnings per common $ (0.25 ) $ 0.60 $ (0.14 ) $ 0.63 shareInterest onConvertible Notes, 0.02 - 0.02 - net of taxNon-controllinginterest redemption 0.30 0.13 0.27 0.20 incrementAmortization 0.25 0.23 0.49 0.46 expense, net of taxGains attributable (0.01 ) - (0.01 ) - to MSRs, net of taxAcquisition-related 0.10 0.12 0.17 0.22 itemsRestructuring 0.24 - 0.35 0.01 costs, net of taxStock-basedcompensation 0.05 0.02 0.10 0.09 expense, net of taxAdjusted EPS $ 0.70 $ 1.10 $ 1.25 $ 1.61 Diluted weightedaverage shares for 41,901 39,954 41,021 39,887 Adjusted EPS(thousands)

Adjusted EPS is calculated using the if-converted method of calculating earnings per share in relation to the Convertible Notes, which were issued on May 19, 2020. As such, if adjusted net earnings is in a positive position, the interest (net of tax) on the Convertible Notes is added to the numerator and the additional shares issuable on conversion of the Convertible Notes is added to the denominator of the earnings per share calculation. If adjusted net earnings is in a loss position, then the if-converted method is not used as the impact on earnings per share cannot be anti-dilutive.

3. Local currency revenue growth rate and internal revenue growth rate measures

Percentage revenue variances presented on a local currency basis are calculated by translating the current period results of our non-US dollar denominated operations to US dollars using the foreign currency exchange rates from the periods against which the current period results are being compared. Percentage revenue variances presented on an internal growth basis are calculated assuming no impact from acquired entities in the current and prior periods. Revenue from acquired entities, including any foreign exchange impacts, are treated as acquisition growth until the respective anniversaries of the acquisitions. We believe that these revenue growth rate methodologies provide a framework for assessing the Companys performance and operations excluding the effects of foreign currency exchange rate fluctuations and acquisitions. Since these revenue growth rate measures are not calculated under GAAP, they may not be comparable to similar measures used by other issuers.

4. Assets under management

We use the term assets under management (AUM) as a measure of the scale of our Investment Management operations. AUM is defined as the gross market value of operating assets and the projected gross cost of development properties of the funds, partnerships and accounts to which we provide management and advisory services, including capital that such funds, partnerships and accounts have the right to call from investors pursuant to capital commitments. Our definition of AUM may differ from those used by other issuers and as such may not be directly comparable to similar measures used by other issuers.

COLLIERS INTERNATIONAL GROUP INC.Condensed Consolidated Statements of Earnings(in thousands of US$, except per share amounts) Three months Six months ended June 30 ended June 30(unaudited) 2020 2019 2020 2019 Revenues $ 550,206 $ 745,517 $ 1,180,834 $ 1,380,640 Cost of revenues 355,347 484,220 771,705 905,570 Selling, generaland administrative 150,612 175,058 318,704 348,130 expensesDepreciation 8,851 8,540 17,729 16,489 Amortization of 17,089 15,238 33,101 29,958 intangible assetsAcquisition-related 3,784 5,263 6,534 9,898 items (1)Operating earnings 14,523 57,198 33,061 70,595 Interest expense, 6,179 8,257 13,763 15,476 netOther income (266 ) 179 (970 ) (322 )Earnings before 8,610 48,762 20,268 55,441 income taxIncome tax 2,127 13,187 7,326 14,402 Net earnings 6,483 35,575 12,942 41,039 Non-controllinginterest share of 4,265 6,586 7,642 7,831 earningsNon-controllinginterest redemption 12,530 5,205 11,025 7,962 incrementNet earnings (loss)attributable to $ (10,312 ) $ 23,784 $ (5,725 ) $ 25,246 Company Net earnings (loss) per common share Basic $ (0.26 ) $ 0.60 $ (0.14 ) $ 0.64 Diluted $ (0.26 ) $ 0.60 $ (0.14 ) $ 0.63 Adjusted EPS (2) $ 0.70 $ 1.10 $ 1.25 $ 1.61 Weighted averagecommon shares (thousands) Basic 39,930 39,532 39,902 39,416 Diluted 39,930 39,954 39,902 39,887

Notes to Condensed Consolidated Statements of Earnings(1) Acquisition-related items include transaction costs, contingent acquisition consideration fair value adjustments and contingent acquisition consideration-related compensation expense.(2) See definition and reconciliation above.

Condensed Consolidated Balance Sheets(in thousands of US$) (unaudited) June 30, December 31, June 30, 2020 2019 2019 Assets Cash and cash equivalents $ 147,169 $ 114,993 $ 102,092Restricted cash 19,069 - -Accounts receivable and contract 341,778 436,717 359,850assetsWarehouse receivables (1) 30,586 - -Prepaids and other assets 177,674 155,606 141,948Real estate assets held for sale - 10,741 - Current assets 716,276 718,057 603,890Other non-current assets 87,980 92,350 88,504Fixed assets 107,207 107,197 102,264Operating lease right-of-use 260,613 263,639 274,857assetsDeferred income tax 50,308 37,420 38,954Goodwill and intangible assets 1,572,605 1,426,675 1,383,778Real estate assets held for sale - 247,376 - Total assets $ 2,794,989 $ 2,892,714 $ 2,492,247 Liabilities and shareholders' equityAccounts payable and accrued $ 568,933 $ 757,284 $ 548,022liabilitiesOther current liabilities 50,947 56,702 65,890Long-term debt - current 7,397 4,223 2,356Warehouse lines of credit 24,586 - -Operating lease liabilities - 68,417 69,866 70,953currentLiabilities related to real estate - 36,191 -assets held for sale Current liabilities 720,280 924,266 687,221Long-term debt - non-current 619,809 607,181 690,048Operating lease liabilities - 230,366 229,224 238,602non-currentOther liabilities 102,676 99,873 85,608Deferred income tax 24,329 28,018 23,525Convertible notes 223,462 - -Liabilities related to real estate - 127,703 -assets held for saleRedeemable non-controlling 375,057 359,150 338,405interestsShareholders' equity 499,010 517,299 428,838 Total liabilities and equity $ 2,794,989 $ 2,892,714 $ 2,492,247 Supplemental balance sheet informationTotal debt (2) $ 627,206 $ 611,404 $ 692,404Total debt, net of cash (2) 480,037 496,411 590,312Net debt / pro forma adjusted 1.5 1.4 1.7EBITDA ratio (3)

Note to Condensed Consolidated Balance Sheets

(1) Warehouse receivables represent mortgage loans receivable, the majority of which are offset by borrowings under warehouse lines of credit which fund loans that US Government Sponsored Enterprises have committed to purchase.(2) Excluding warehouse lines of credit and convertible notes.(3) Net debt for financial leverage ratio excludes warehouse lines of credit and convertible notes, in accordance with debt agreements.

Condensed Consolidated Statements of Cash Flows(in thousands of US$) Three months ended Six months ended June 30 June 30(unaudited) 2020 2019 2020 2019 Cash provided by (used in) Operating activitiesNet earnings $ 6,483 $ 35,575 $ 12,942 $ 41,039 Items not affecting cash: Depreciation and 25,940 23,778 50,830 46,447 amortization (Gains) losses on mortgage (509 ) - (509 ) - servicing rights and derivatives Proceeds from sale of 89,979 - 89,979 - mortgage loans Origination of mortgage (87,099 ) - (87,099 ) - loans Deferred (6,839 ) (3,025 ) (13,997 ) (7,044 ) income tax Other 11,163 15,714 24,603 30,641 39,118 72,042 76,749 111,083 Net change fromassets/ liabilities Accounts receivable 16,992 (26,338 ) 75,470 22,068 and contract assets Warehouse 697 - 697 - receivables Prepaids and (3,481 ) (2,117 ) (2,122 ) (10,375 ) other assets Payables and (21,542 ) (26,222 ) (210,802 ) (207,794 ) accruals Other (2,071 ) 11,306 (4,976 ) 7,607 Contingentacquisition (1,354 ) (5,101 ) (15,684 ) (5,213 )considerationpaidSale proceedsfrom AR (1,276 ) 119,425 (12,285 ) 119,425 Facility, netof repurchasesNet cashprovided by(used in) 27,083 142,995 (92,953 ) 36,801 operatingactivities Investing activitiesAcquisition ofbusinesses, net (133,840 ) (10,433 ) (136,941 ) (23,677 )of cashacquiredPurchases of (10,290 ) (13,685 ) (19,029 ) (24,064 )fixed assetsProceeds fromsale of held 94,222 - 94,222 - for sale realestate assetsCashcollections onAR facility 15,069 7,337 26,459 7,337 deferredpurchase priceOther investing (1,104 ) (6,403 ) 804 (15,602 )activitiesNet cash usedin investing (35,943 ) (23,184 ) (34,485 ) (56,006 )activities Financing activities(Decrease)increase in (118,002 ) (113,470 ) 25,144 21,424 long-term debt,netIssuance ofconvertible 230,000 - 230,000 - notesPurchases ofnon-controlling (19,719 ) (4,061 ) (24,395 ) (6,765 )interests, netof salesDividends paidto common - - (1,992 ) (1,961 )shareholdersDistributionspaid to (14,293 ) (13,363 ) (21,986 ) (19,557 )non-controllinginterestsOther financing (5,165 ) (2,545 ) (13,638 ) 2,399 activitiesNet cashprovided by(used in) 72,821 (133,439 ) 193,133 (4,460 )financingactivities Effect ofexchange rate (813 ) (1,627 ) (14,450 ) (1,275 )changes on cash Increase(Decrease) in cash and cashequivalents and 63,148 (15,255 ) 51,245 (24,940 )restricted cash Cash and cash equivalents andrestrictedcash, beginning 103,090 117,347 114,993 127,032 of period Cash and cash equivalents andrestrictedcash, end of $ 166,238 $ 102,092 $ 166,238 $ 102,092 period

Segmented Results(in thousands of US dollars) Asia Investment (unaudited) Americas EMEA Pacific Management Corporate Consolidated Three months ended June 30 2020 Revenues $ 308,885 $ 99,614 $ 100,105 $ 41,389 $ 213 $ 550,206Adjusted EBITDA 24,376 6,323 12,255 17,350 (342 ) 59,962Operating earnings 3,415 (3,267 ) 5,091 10,648 (1,364 ) 14,523(loss) 2019 Revenues $ 421,385 $ 151,595 $ 125,099 $ 46,902 $ 536 $ 745,517Adjusted EBITDA 36,155 19,042 14,200 19,234 (1,308 ) 87,323Operating earnings 25,619 10,842 12,539 12,249 (4,051 ) 57,198(loss) Asia Investment Americas EMEA Pacific Management Corporate Consolidated Six months ended June 30 2020 Revenues $ 678,875 $ 216,696 $ 197,539 $ 87,214 $ 510 $ 1,180,834Adjusted EBITDA 55,534 2,682 17,503 35,784 2,914 114,417Operating earnings 26,125 (16,718 ) 6,319 22,426 (5,091 ) 33,061 2019 Revenues $ 780,211 $ 272,059 $ 237,416 $ 89,992 $ 962 $ 1,380,640Adjusted EBITDA 62,388 16,534 25,108 29,480 (2,616 ) 130,894Operating earnings 41,788 696 21,755 15,886 (9,529 ) 70,596

COMPANY CONTACTS:

Jay S. HennickChairman & Chief Executive Officer

John B. FriedrichsenChief Operating Officer

Christian MayerChief Financial Officer

(416) 960-9500