GlobeNewswire Inc | Feb 11, 2021 07:00AM EST

February 11, 2021

Operating highlights:

Three months ended Twelve months ended December 31 December 31 (in millions of US$, except 2020 2019 2020 2019 EPS) Revenues $ 913.7 $ 928.3 $ 2,786.9 $ 3,045.8 Adjusted EBITDA (note 1) 154.9 144.3 361.4 359.5 Adjusted EPS (note 2) 1.79 2.01 4.18 4.67 GAAP operating earnings 79.4 99.4 164.6 218.2 GAAP EPS 0.80 1.20 1.22 2.57

TORONTO, Feb. 11, 2021 (GLOBE NEWSWIRE) -- Colliers International Group Inc. (NASDAQ and TSX: CIGI) today announced operating and financial results for the quarter and full year ended December 31, 2020. All amounts are in US dollars.

For the fourth quarter ended December 31, 2020, revenues were $913.7 million, down 2% (4% in local currency) relative to the same quarter in the prior year, adjusted EBITDA (note 1) was $154.9 million, up 7% (4% in local currency) and adjusted EPS (note 2) was $1.79, down 11% versus the prior year period. Fourth quarter adjusted EPS would have been approximately $0.07 lower excluding foreign exchange impacts. GAAP operating earnings were $79.4 million, relative to $99.4 million in the prior year quarter. GAAP diluted net earnings per share were $0.80 relative to $1.20 in the prior year quarter. Fourth quarter GAAP EPS would have been approximately $0.07 lower excluding changes in foreign exchange rates.

For the full year ended December 31, 2020, revenues were $2.79 billion, down 9% (9% in local currency) relative to the same period in the prior year, adjusted EBITDA (note 1) was $361.4 million, up 1% (flat in local currency) versus prior year and adjusted EPS (note 2) was $4.18, down 10% versus prior year. Full year adjusted EPS would have been approximately $0.04 lower excluding foreign exchange impacts. GAAP operating earnings were $164.6 million, relative to $218.2 million in 2019. GAAP diluted earnings per share were $1.22 per share, relative to $2.57 in the prior year period. Full year GAAP EPS would have been approximately $0.04 lower excluding changes in foreign exchange rates.

Colliers delivered better than anticipated financial results for our fourth quarter and full year 2020, despite the ongoing impact of the global pandemic. The strong finish is a testament to our unique enterprising culture and the steps taken over the past few years to transform Colliers into a more balanced and resilient professional services and investment management company. The majority of our revenues and more than 60% of our Adjusted EBITDA now come from high quality recurring services with the balance coming from transactional services, said Jay S. Hennick, Global Chairman and CEO of Colliers.

During 2020, despite many challenges, we continued to invest with a long-term perspective adding Colliers Mortgage and Colliers Engineering & Design, two new platforms that performed better than expected and offer additional growth opportunities in the future. After year end, we also formally launched our new visual identity designed for todays evolving digital era, a natural evolution of the iconic Colliers brand and reaffirming our commitment to accelerating success for our clients and our people, as we lead our company and industry into the future. With our proven track record of more than 25 years, strong balance sheet, unique enterprising culture and significant inside ownership, we are confident that Colliers will emerge from this pandemic stronger and more balanced than ever, he concluded.

About Colliers International Group Inc.Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 67 countries, our more than 15,000 enterprising professionals work collaboratively to provide expert advice to real estate occupiers, owners and investors. For more than 25 years, our experienced leadership with significant insider ownership has delivered compound annual investment returns of almost 20% for shareholders. With annualized revenues of $3.0 billion ($3.3 billion including affiliates) and $40 billion of assets under management, we maximize the potential of property and accelerate the success of our clients and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn.

Consolidated Revenues by Line of Service

Three months ended Twelve months ended (inthousands December 31 Change Change December 31 Change Changeof US$)(LC = in US$ in US$local 2020 2019 % in LC% 2020 2019 % in LC%currency) Outsourcing $ 377,191 $ 331,152 14% 12% $ 1,226,877 $ 1,148,915 7% 7%& AdvisoryInvestmentManagement ^ 43,676 44,722 -2% -3% 172,594 174,588 -1% -1%(1)Leasing 215,516 292,489 -26% -29% 686,482 946,399 -27% -28%Capital 277,333 259,925 7% 4% 700,904 775,909 -10% -10%MarketsTotal $ 913,716 $ 928,288 -2% -4% $ 2,786,857 $ 3,045,811 -9% -9%revenues ^(1) Investment Management local currency revenues, excluding pass-throughcarried interest, were up 4% and 8% for the three months and year endedDecember 31, 2020, respectively.

Consolidated revenues for the fourth quarter declined 4% on a local currency basis, driven by pandemic-related declines primarily in Leasing activity. Consolidated internal revenues measured in local currencies were down 15% (note 3).

For the year ended December 31, 2020, consolidated revenues declined 9% on a local currency basis, with the impact of the pandemic beginning in March 2020. Full year consolidated internal revenues measured in local currencies were down 16% (note 3).

Segmented Fourth Quarter ResultsRevenues in the Americas region totalled $524.9 million for the fourth quarter, up 8% (8% in local currency) versus $486.0 million in the prior year quarter. Revenue growth was driven by recent acquisitions with modest internal revenue growth in Outsourcing & Advisory and Capital Markets, partially offset by lower Leasing revenues. Adjusted EBITDA was $70.3 million, up 40% from $50.2 million in the prior year quarter, which includes the impact of recent acquisitions and measures implemented to manage operating costs. GAAP operating earnings were $54.8 million, relative to $35.5 million in the prior year quarter.

Revenues in the EMEA region totalled $182.5 million for the fourth quarter compared to $225.6 million in the prior year quarter, down 19% (24% in local currency) with declines attributable to the pandemic experienced across all service lines. Adjusted EBITDA was $35.6 million, versus $51.2 million in the prior year. GAAP operating earnings were $26.4 million compared to $42.7 million in the fourth quarter of 2019.

Revenues in the Asia Pacific region totalled $162.6 million for the fourth quarter compared to $171.7 million in the prior year quarter, down 5% (11% in local currency) on a pandemic-related decline in transactional businesses partially offset by growth in the Outsourcing & Advisory service line. Adjusted EBITDA was $36.0 million as compared to $32.5 million in the prior year quarter. GAAP operating earnings were $30.4 million, versus $28.1 million in the prior year quarter.

Investment Management revenues for the fourth quarter were $43.7 million compared to $44.7 million in the prior year quarter. No pass-through revenue from historical carried interest was recognized in the fourth quarter, versus $3.1 million in the prior year quarter. Excluding the impact of pass-through revenue, revenues were up 5% (4% in local currency) and were positively impacted by strong growth in both open and closed-end funds series. Adjusted EBITDA was $18.4 million, up 12% relative to $16.5 million in the prior year quarter. GAAP operating earnings were $10.4 million in the quarter, versus $9.9 million in the prior year quarter. Assets under management were $39.5 billion at December 31, 2020, up 9% from $36.2 billion at September 30, 2020 and up 20%, a significant increase from $32.9 billion at December 31, 2019.

Unallocated global corporate costs as reported in Adjusted EBITDA were $5.4 million in the fourth quarter, relative to $6.0 million in the prior year quarter. The corporate GAAP operating loss for the quarter was $42.5 million, relative to $16.6 million in the fourth quarter of 2019 attributable to an increase in the fair value of contingent acquisition consideration on strong operating performance of recently acquired businesses.

Segmented Full Year ResultsRevenues in the Americas region totalled $1.63 billion for the full year compared to $1.69 billion in the prior year, down 4% (3% in local currency). The decline was primarily attributable to lower Leasing activity due to the pandemic which was partly offset by contributions from recent acquisitions. Adjusted EBITDA was $180.4 million, up 19% from $151.3 million in the prior year and included the impact of (i) recent acquisitions of Colliers Mortgage and Colliers Engineering & Design and (ii) measures implemented to manage operating costs as a result of the pandemic. GAAP operating earnings were $121.4 million, versus $103.7 million in 2019.

EMEA region revenues totalled $516.5 million for the year compared to $636.5 million in the prior year, down 19% (20% in local currency) on lower activity attributable to the pandemic across all service lines. Adjusted EBITDA was $45.9 million, versus $80.3 million in the prior year. GAAP operating earnings were $8.3 million as compared to $48.5 million in 2019.

Asia Pacific region revenues totalled $470.6 million for the year compared to $542.6 million in the prior year, down 13% (15% in local currency) primarily on lower Leasing and Capital Markets activity due to the pandemic, partially offset by a small increase in Outsourcing & Advisory revenues. Adjusted EBITDA was $66.3 million, versus $76.2 million in the prior year. GAAP operating earnings were $45.2 million, versus $67.1 million in the prior year.

Investment Management revenues were $172.6 million compared to $174.6 million in the prior year. Pass-through revenue from historical carried interest represented $4.2 million in the current year, versus $19.2 million in the prior year. Excluding the impact of pass-through revenue, revenues were up 8% (8% in local currency) and were positively impacted by strong fundraising in closed end funds and growth in open-end funds. Adjusted EBITDA was $69.5 million relative to $61.9 million in the prior year. GAAP operating earnings were $40.7 million, versus $35.0 million in 2019.

Unallocated global corporate costs as reported in Adjusted EBITDA were $0.7 million in 2020, relative to $10.3 million in the prior year with the change attributable to lower compensation and variable expenses. The corporate GAAP operating loss was $51.1 million, relative to $36.2 million in 2019 attributable to an increase in the fair value of contingent acquisition consideration based on strong operating performance of recently acquired businesses.

2021 OutlookThe impact of the COVID-19 pandemic is expected to subside over the course of 2021, although the timing and extent remain uncertain. Transactional revenues are anticipated to rebound in the second half of the year, while Outsourcing & Advisory and Investment Management revenues are expected to remain resilient throughout the year. The outlook for the full year 2021 (relative to 2020), including the full year impact of acquisitions completed during 2020, is as follows:

Full Year 2021 OutlookRevenue +10% to +25%Adjusted EBITDA +10% to +25%

This outlook is based on the Companys best available information as of the date of this press release and remains subject to change based on numerous macroeconomic, health, social, geo-political and related factors.

During 2020, the Company took significant measures to maintain business continuity across all service lines, including steps to optimize the level of all critical functions across our business. Expenses incurred in connection with these adjustments are recorded as restructuring costs (note 1) and were primarily severance related. The Company may take further cost management measures in future quarters.

The Company also received wage subsidies totalling $10.9 million during the fourth quarter ($34.8 million for the full year) from governments in several countries. These subsidies were recorded in earnings as an offset to employment costs. The Company may receive further government wage subsidies in future quarters.

Conference CallColliers will be holding a conference call on Thursday, February 11, 2021 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 Twelve months ended(in thousands of December 31 December 31US$) 2020 2019 2020 2019 Net earnings $ 49,568 $ 67,877 $ 94,489 $ 137,585 Income tax 22,980 25,742 42,046 53,013 Other income, net (1,427 ) (868 ) (2,906 ) (1,853 )Interest expense, 8,322 6,677 30,949 29,452 netOperating earnings 79,443 99,428 164,578 218,197 Depreciation and 38,795 25,382 125,906 94,664 amortizationGains attributable (9,668 ) - (17,065 ) - to MSRsEquity earningsfrom 1,468 - 2,919 - non-consolidatedinvestmentsAcquisition-related 34,349 9,767 45,848 28,532 itemsRestructuring costs 6,947 7,110 29,628 10,252 Stock-basedcompensation 3,572 2,633 9,628 7,831 expenseAdjusted EBITDA $ 154,906 $ 144,320 $ 361,442 $ 359,476

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.

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, 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 are added to the denominator of the earnings per share calculation to determine if an assumed conversion is more dilutive than no assumption of conversion. The if-converted method is used if the impact of the assumed conversion is dilutive. For the year ended December 31, 2020, the if-converted method is anti-dilutive for the GAAP diluted EPS calculation but dilutive for the adjusted EPS calculation

Three months ended Twelve months ended(in thousands of December 31 December 31US$) 2020 2019 2020 2019 Net earnings $ 49,568 $ 67,877 $ 94,489 $ 137,585 Non-controllinginterest share of (15,666 ) (12,930 ) (29,572 ) (26,829 )earningsInterest on 2,300 - 5,673 - Convertible NotesAmortization of 27,544 16,437 86,557 61,273 intangible assetsGains attributable (9,668 ) - (17,065 ) - to MSRsAcquisition-related 34,349 9,767 45,848 28,532 itemsRestructuring costs 6,947 7,110 29,628 10,252 Stock-basedcompensation 3,572 2,633 9,628 7,831 expenseIncome tax on (15,115 ) (7,493 ) (35,350 ) (22,232 )adjustmentsNon-controllinginterest on (4,257 ) (2,769 ) (11,479 ) (9,868 )adjustmentsAdjusted net $ 79,574 $ 80,632 $ 178,357 $ 186,544 earnings Three months ended Twelve months ended(in US$) December 31 December 31 2020 2019 2020 2019 Diluted netearnings per common $ 0.80 $ 1.20 $ 1.25 $ 2.57 shareNon-controllinginterest redemption 0.01 0.17 0.37 0.20 incrementAmortization 0.35 0.25 1.23 0.93 expense, net of taxGains attributable (0.09 ) - (0.22 ) - to MSRs, net of taxAcquisition-related 0.53 0.19 0.82 0.58 itemsRestructuring 0.12 0.13 0.51 0.19 costs, net of taxStock-basedcompensation 0.07 0.07 0.22 0.20 expense, net of taxAdjusted EPS $ 1.79 $ 2.01 $ 4.18 $ 4.67 Diluted weightedaverage shares for 44,365 40,109 42,647 39,980 Adjusted EPS(thousands)

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 Twelve months ended December 31 ended December 31(unaudited) 2020 2019 2020 2019 Revenues $ 913,716 $ 928,288 $ 2,786,857 $ 3,045,811 Cost of revenues 543,124 576,609 1,740,860 1,959,544 Selling, generaland administrative 218,005 217,102 709,665 744,874 expensesDepreciation 11,251 8,945 39,349 33,391 Amortization of 27,544 16,437 86,557 61,273 intangible assetsAcquisition-related 34,349 9,767 45,848 28,532 items (1)Operating earnings 79,443 99,428 164,578 218,197 Interest expense, 8,322 6,677 30,949 29,452 netEquity earningsfrom unconsolidated (1,468 ) (845 ) (2,919 ) (2,065 )investmentsOther income 41 (23 ) 13 212 Earnings before 72,548 93,619 136,535 190,598 income taxIncome tax 22,980 25,742 42,046 53,013 Net earnings 49,568 67,877 94,489 137,585 Non-controllinginterest share of 15,666 12,930 29,572 26,829 earningsNon-controllinginterest redemption 270 6,934 15,843 7,853 incrementNet earningsattributable to $ 33,632 $ 48,013 $ 49,074 $ 102,903 Company Net earnings per common share Basic $ 0.84 $ 1.21 $ 1.23 $ 2.60 Diluted (2) $ 0.80 $ 1.20 $ 1.22 $ 2.57 Adjusted EPS (3) $ 1.79 $ 2.01 $ 4.18 $ 4.67 Weighted averagecommon shares (thousands) Basic 40,111 39,754 39,986 39,550 Diluted 44,365 40,109 40,179 39,980

Notes to Condensed Consolidated Statements of Earnings Acquisition-related items include contingent acquisition consideration fair(1) value adjustments, contingent acquisition consideration-related compensation expense and transaction costs. Diluted 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, 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 are added to the denominator of the(2) earnings per share calculation to determine if an assumed conversion is more dilutive than no assumption of conversion. The ?if-converted? method is used if the impact of the assumed conversion is dilutive. For the three-month period and year ended December 30, 2020, the interest (net of tax) on the Convertible Notes was $1,691 and $4,170, respectively. The ?if-converted? method is dilutive for the three-month period ended December 31, 2020 and anti-dilutive for the year ended December 31, 2020.(3) See definition and reconciliation above.

Condensed Consolidated Balance Sheets (in thousands of US$) (unaudited) December 31, December 31, 2020 2019 Assets Cash and cash equivalents $ 156,614 $ 114,993Restricted cash (1) 20,919 -Accounts receivable and contract assets 433,250 436,717Warehouse receivables (2) 232,207 -Prepaids and other assets 192,821 155,606Real estate assets held for sale - 10,741 Current assets 1,035,811 718,057Other non-current assets 94,679 92,350Fixed assets 129,221 107,197Operating lease right-of-use assets 288,134 263,639Deferred tax assets, net 45,008 37,420Goodwill and intangible assets 1,699,314 1,426,675Real estate assets held for sale - 247,376 Total assets $ 3,292,167 $ 2,892,714 Liabilities and shareholders' equity Accounts payable and accrued liabilities $ 748,660 $ 757,284Other current liabilities 53,661 56,702Long-term debt - current 9,024 4,223Warehouse credit facilities (2) 218,018 -Operating lease liabilities - current 78,923 69,866Liabilities related to real estate assets held - 36,191for sale Current liabilities 1,108,286 924,266Long-term debt - non-current 470,871 607,181Operating lease liabilities - non-current 251,680 229,224Other liabilities 158,366 99,873Deferred tax liabilities, net 50,523 28,018Convertible notes 223,957 -Liabilities related to real estate assets held - 127,703for saleRedeemable non-controlling interests 442,375 359,150Shareholders' equity 586,109 517,299 Total liabilities and equity $ 3,292,167 $ 2,892,714 Supplemental balance sheet information Total debt (3) $ 479,895 $ 611,404Total debt, net of cash (3) 323,281 496,411Net debt / pro forma adjusted EBITDA ratio (4) 1.0 1.4

Note to Condensed Consolidated Balance Sheets Restricted cash consists primarily of cash amounts set aside to satisfy(1) legal or contractual requirements arising in the normal course of business, primarily Colliers Mortgage. Warehouse receivables represent mortgage loans receivable, the majority of(2) which are offset by borrowings under warehouse credit facilities which fund loans that financial institutions have committed to purchase.(3) Excluding warehouse credit facilities and convertible notes. Net debt for financial leverage ratio excludes restricted cash, warehouse(4) credit facilities and convertible notes, in accordance with debt agreements.



Condensed Consolidated Statements of Cash Flows(in thousands of US$) Three months ended Twelve months ended December 31 December 31(unaudited) 2020 2019 2020 2019 Cash provided by (used in) Operating activitiesNet earnings $ 49,568 $ 67,877 $ 94,488 $ 137,585 Items not affecting cash: Depreciation and 38,795 25,382 125,906 94,664 amortization Gains attributable to mortgage (9,668 ) - (17,065 ) - servicing rights Gains attributable to the fair value of loan premiums and origination (22,418 ) - (38,531 ) - fees Deferred 3,790 3,286 (13,184 ) (6,699 ) income tax Other 43,214 16,020 80,497 57,520 103,281 112,565 232,111 283,070 (Increase)decrease inaccounts receivable,prepaid expenses and (31,683 ) (89,503 ) 49,039 (89,235 ) other assets(Decrease)increase inaccounts payable,accrued expenses and other (73,645 ) 36,564 (13,901 ) (15,692 ) liabilities(Decrease)increase in 67,780 123,895 (78,591 ) 16,580 accruedcompensationContingentacquisition (2,540 ) (3,216 ) (18,224 ) (8,928 )considerationpaidProceeds fromsale of 744,907 - 1,226,041 - mortgage loansOrigination of (769,532 ) - (1,395,734 ) - mortgage loansIncrease inwarehouse 36,802 - 193,168 - creditfacilitiesSale proceedsfrom AR (13,141 ) 7,268 (27,431 ) 124,963 Facility, netof repurchasesNet cashprovided by 62,229 187,573 166,478 310,758 operatingactivities Investing activitiesAcquisition ofbusinesses, net (1,692 ) (56,899 ) (205,608 ) (80,576 )of cashacquiredPurchases of (10,823 ) (12,888 ) (40,353 ) (44,197 )fixed assetsPurchase ofheld for sale (38,464 ) (94,223 ) (84,382 ) (94,223 )real estateassetsProceeds fromsale of held 84,382 - 178,604 - for sale realestate assetsCashcollections onAR facility 13,862 12,936 51,994 28,100 deferredpurchase priceOther investing (12,573 ) (7,459 ) (13,713 ) (27,372 )activitiesNet cash usedin investing 34,692 (158,533 ) (113,458 ) (218,268 )activities Financing activities(Decrease)increase in (181,192 ) (10,612 ) (163,064 ) (59,312 )long-term debt,netIssuance ofconvertible - - 230,000 - notesPurchases ofnon-controlling (813 ) (652 ) (19,791 ) (11,480 )interests, netof salesDividends paidto common - - (3,992 ) (3,940 )shareholdersDistributionspaid to (6,636 ) (4,007 ) (35,698 ) (31,858 )non-controllinginterestsOther financing 4,581 (1,173 ) (6,406 ) 5,602 activitiesNet cashprovided by(used in) (184,060 ) (16,444 ) 1,049 (100,988 )financingactivities Effect ofexchange rate 16,939 721 8,471 (3,541 )changes on cash Increase(Decrease) in cash and cash equivalents and (70,200 ) 13,317 62,540 (12,039 ) restricted cashCash and cash equivalents and restricted cash, 247,733 101,676 114,993 127,032 beginning of periodCash and cash equivalents and restricted cash, end of $ 177,533 $ 114,993 $ 177,533 $ 114,993 period

Segmented Results(in thousands of US dollars) Asia Investment (unaudited) Americas EMEA Pacific Management Corporate Consolidated Three months ended December 31 2020 Revenues $ 524,860 $ 182,461 $ 162,616 $ 43,676 $ 103 $ 913,716 Adjusted 70,267 35,599 36,034 18,425 (5,419 ) 154,906 EBITDA Operating earnings 54,834 26,407 30,354 10,391 (42,543 ) 79,443 (loss) 2019 Revenues $ 486,038 $ 225,589 $ 171,681 $ 44,722 $ 258 $ 928,288 Adjusted 50,170 51,163 32,495 16,509 (6,017 ) 144,320 EBITDA Operating earnings 35,453 42,682 28,066 9,867 (16,641 ) 99,427 (loss) Asia Investment Americas EMEA Pacific Management Corporate Consolidated Twelve months ended December 31 2020 Revenues $ 1,626,372 $ 516,507 $ 470,632 $ 172,594 $ 752 $ 2,786,857 Adjusted 180,427 45,934 66,292 69,488 (699 ) 361,442 EBITDA Operating 121,371 8,336 45,221 40,738 (51,088 ) 164,578 earnings 2019 Revenues $ 1,690,507 $ 636,466 $ 542,609 $ 174,588 $ 1,641 $ 3,045,811 Adjusted 151,347 80,342 76,209 61,907 (10,329 ) 359,476 EBITDA Operating 103,731 48,510 67,062 35,048 (36,154 ) 218,197 earnings

COMPANY CONTACTS:

Jay S. HennickChairman & Chief Executive Officer

John B. FriedrichsenChief Operating Officer

Christian MayerChief Financial Officer

(416) 960-9500