GlobeNewswire Inc | Aug 4, 2021 07:00AM EDT

August 04, 2021

Operating highlights:

Three months ended Six months ended June 30 June 30(in millions of 2021 2020 2021 2020 US$, except EPS) Revenues $ 946.0 $ 550.2 $ 1,720.9 $ 1,180.8 Adjusted EBITDA 136.6 60.0 228.7 114.4 (note 1)Adjusted EPS (note 1.58 0.70 2.64 1.25 2) GAAP operating (385.8)* 14.5 (345.8)* 33.1 earningsGAAP diluted EPS (10.53)* (0.26 ) (10.80)* (0.14 )* Includes $471.9 million settlement of Long-Term Incentive Arrangement withthe Company's Chairman & CEO.

TORONTO, Aug. 04, 2021 (GLOBE NEWSWIRE) -- Colliers International Group Inc. (NASDAQ and TSX: CIGI) (Colliers or the Company) today announced operating and financial results for the second quarter ended June 30, 2021. All amounts are in US dollars.

For the quarter ended June 30, 2021, revenues were $946.0 million, up 72% (64% in local currency) relative to the same quarter in the prior year which was materially impacted by the early stages of the COVID-19 pandemic. Adjusted EBITDA (note 1) was $136.6 million, up 128% (116% in local currency) and adjusted EPS (note 2) was $1.58, up 126% versus the prior year period. Second quarter adjusted EPS would have been approximately $0.10 lower excluding foreign exchange impacts. The GAAP operating loss was $385.8 million and included a $471.9 million settlement of the Long-Term Incentive Arrangement (LTIA) with the Company's Chairman & CEO as approved by 95% of the Companys disinterested shareholders. The GAAP diluted loss per share was $10.53. Second quarter GAAP EPS would have been approximately $0.11 lower excluding changes in foreign exchange rates.

For the six months ended June 30, 2021, revenues were $1.72 billion, up 46% (40% in local currency) relative to the same period in the prior year, adjusted EBITDA (note 1) was $228.7 million, up 100% (91% in local currency) versus prior year and adjusted EPS (note 2) was $2.64, up 111% versus prior year. Six months ended June 30, 2021 adjusted EPS would have been approximately $0.14 lower excluding foreign exchange impacts. The GAAP operating loss was $345.8 million and included the settlement of the LTIA. The GAAP diluted loss per share was $10.80. Second quarter GAAP EPS would have been approximately $0.15 lower excluding changes in foreign exchange rates.

Colliers reported robust second quarter results with strong momentum across all services lines, said Jay S. Hennick, Chairman & CEO of Colliers. During the quarter, both Capital Markets and Leasing were up materially when compared to the prior year period. Compared to 2019 pre-pandemic levels, revenues from Capital Markets were up significantly while Leasing partially recovered but remained below 2019 levels. Our Outsourcing & Advisory and Investment Management service lines posted high teens internal growth rates. Investment Management had another record fundraising quarter, raising more than $2 billion and bringing total assets under management to more than $44 billion. Each of Colliers Engineering & Design and Colliers Mortgage delivered excellent year over year performance as we continue to develop these growth engines for the future. Based on our strong results to date, we are again raising our full year financial outlook. Finally, after quarter-end, Colliers announced the private placement of a new series of Senior Notes, providing incremental low cost and long-term debt capital and bringing our overall liquidity for future growth to more than $1 billion. With our proven track record, balanced and diversified business model, unique enterprising culture and significant inside ownership, Colliers is well positioned to continue creating shareholder value for many years to come, he concluded.

About ColliersColliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 66 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 $3.3 billion ($3.6 billion including affiliates) and $45 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 Six months ended (inthousands June 30 Change Change June 30 Change Changeof US$)(LC = local 2021 2020 in US$ in LC% 2021 2020 in US$ in LC%currency) % % Outsourcing $ 388,661 $ 257,044 51% 43% $ 728,777 $ 534,334 36% 30%& AdvisoryInvestment 50,477 41,389 22% 21% 95,104 87,214 9% 9%ManagementLeasing 241,257 136,768 76% 69% 420,917 301,278 40% 35%Capital 265,599 115,005 131% 119% 476,110 258,008 85% 76%MarketsTotal $ 945,994 $ 550,206 72% 64% $ 1,720,908 $ 1,180,834 46% 40%revenues

Consolidated revenues for the second quarter increased 64% on a local currency basis, driven by strong Capital Markets and Leasing activity and the impact of recent acquisitions. Consolidated internal revenues measured in local currencies were up 47% (note 3), versus prior year quarter results which were impacted by the COVID-19 pandemic. Relative to 2019 pre-pandemic peak levels, second quarter 2021 Capital Markets revenues were up 34% on an internal local currency basis, while Leasing revenues recovered to within 9% of 2019 levels.

For the six months ended June 30, 2021, consolidated revenues increased 40% on a local currency basis driven by a rebound in Capital Markets and Leasing activity and the impact of recent acquisitions, versus prior year results which were impacted by the pandemic beginning in March 2020. Consolidated internal revenues measured in local currencies were up 23% (note 3). Relative to 2019 pre-pandemic peak levels, year to date 2021 Capital Markets revenues were up 23% on an internal local currency basis, while Leasing revenues recovered to within 8% of 2019 levels.

Segmented Second Quarter ResultsRevenues in the Americas region totalled $582.8 million for the second quarter, up 89% (84% in local currency) versus $308.9 million in the prior year quarter. Revenue growth was driven by strong Capital Markets and Leasing activity across most major markets and the incremental impact of recent acquisitions, versus prior year results which were impacted by the pandemic. Adjusted EBITDA was $78.9 million, up 224% from $24.4 million in the prior year quarter. The increase was driven by higher revenues and reduced costs from measures implemented during the pandemic. GAAP operating earnings were $63.2 million, relative to $3.4 million in the prior year quarter.

Revenues in the EMEA region totalled $158.6 million for the second quarter compared to $99.6 million in the prior year quarter, up 59% (45% in local currency). Revenue growth was strong across all service lines, particularly Capital Markets, relative to reduced levels in the prior year quarter impacted by the pandemic. Adjusted EBITDA was $20.6 million, up 226% from $6.3 million in the prior year on higher revenues and cost savings from measures implemented during the pandemic. The GAAP operating earnings were $14.4 million versus a loss of $3.3 million in the prior year quarter.

Revenues in the Asia Pacific region totalled $154.0 million for the second quarter compared to $100.1 million in the prior year quarter, up 54% (38% in local currency). Revenue growth was robust across all service lines and geographies, particularly in Australia and New Zealand, versus pandemic-impacted prior year quarter results. Adjusted EBITDA was $20.7 million, up 69% from $12.3 million in the prior year quarter with the improvement in margin attributable to operating leverage and a lower cost base from measures implemented during the pandemic. GAAP operating earnings were $16.7 million, versus $5.1 million in the prior year quarter.

Investment Management revenues for the second quarter were $50.5 million compared to $41.4 million in the prior year quarter, up 22% (21% in local currency). Revenue growth was driven by management fee growth from increased assets under management. Neither the current year quarter nor the prior year quarter included carried interest revenues. Adjusted EBITDA was $21.3 million, relative to $17.4 million in the prior year quarter, up 23%. GAAP operating earnings were $14.2 million in the quarter, versus $10.6 million in the prior year quarter. Assets under management were $44.5 billion at June 30, 2021, up 13% from $39.5 billion at December 31, 2020 and up 25% from $35.7 billion at June 30, 2020.

Unallocated global corporate costs as reported in Adjusted EBITDA were $5.0 million in the second quarter, relative to $0.3 million in the prior year quarter, with the change primarily attributable to incentive compensation accruals recorded in the current year period. The corporate GAAP operating loss for the quarter was $494.3 million. Excluding the impact of the LTIA, corporate GAAP operating loss was $22.3 million, relative to a loss of $1.4 million in the second quarter of 2020 attributable to an increase in the fair value of contingent acquisition consideration on strong operating performance of recently acquired businesses as well as incentive compensation accruals.

2021 OutlookGiven stronger than anticipated operating results for the second quarter, the Company is increasing its previously provided financial outlook. However, a number of uncertainties remain which could impact our outlook, including: (i) the emergence of COVID-19 variants around the world; and (ii) certain operating costs, reduced in light of the pandemic, are expected to increase in the second half of the year as restrictions ease which may temper margin expansion. The outlook for the full year 2021 (relative to 2020), including the impact of completed acquisitions, is as follows:

Full Year 2021 Outlook Updated PreviousRevenue +20% to +30% +15% to +30%Adjusted EBITDA +25% to +35% +15% to +30%

This financial 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.

Settlement of Long-Term Incentive ArrangementOn April 16, 2021, after receiving approval from 95% of disinterested shareholders, the Company completed the previously announced transaction (the Transaction) to settle the Management Services Agreement, including the LTIA, between Colliers, Jay S. Hennick and Jayset Management CIG Inc., a corporation controlled by Mr. Hennick. The Transaction also established a timeline for the orderly elimination of Colliers dual class voting structure by no later than September 1, 2028. The completion of the Transaction resulted in the issuance of 3.6 million Subordinate Voting Shares from treasury and a cash payment of $96.2 million funded from the Companys revolving credit facility, which were recorded as an expense of $471.9 million on the statement of earnings during the second quarter of 2021.

Mr. Hennick remains Chairman & Chief Executive Officer of the Company and has control and direction over a total of 4.6 million Subordinate Voting Shares and 1.3 million Multiple Voting Shares of Colliers representing an aggregate of 13.5% of the outstanding shares and 45.0% of the votes.

Private Placement of Senior NotesOn July 28, 2021 the Company entered into a note purchase agreement to issue US dollar and Euro fixed rate senior unsecured notes (the Senior Notes), consisting of US$150 million of 3.02% Notes due 2031 and 125 million of 1.52% Notes due 2031. The Senior Notes were placed privately and rank equally with Colliers senior unsecured revolving credit facility and existing senior unsecured Euro notes due 2028. The proceeds of the issuances are expected to be drawn on or about October 7, 2021. Colliers intends to use the proceeds for general corporate purposes and to reduce outstanding borrowings under its revolving credit facility.

Conference CallColliers will be holding a conference call on Wednesday, August 4, 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.

NotesNon-GAAP Measures1. Reconciliation of net earnings to adjusted EBITDA:

Adjusted EBITDA is defined as net earnings, adjusted to exclude: (i) income tax; (ii) other expense (income); (iii) interest expense; (iv) the settlement of the LTIA; (v) depreciation and amortization, including amortization of mortgage servicing rights (MSRs); (vi) gains attributable to MSRs; (vii) acquisition-related items (including contingent acquisition consideration fair value adjustments, contingent acquisition consideration-related compensation expense and transaction costs); (viii) restructuring costs and (ix) 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 June 30 June 30(in thousands of 2021 2020 2021 2020 US$) Net earnings $ (412,601 ) $ 6,483 $ (387,794 ) $ 12,942 Income tax 20,872 2,127 29,719 7,326 Other income,including equityearnings from (1,964 ) (266 ) (3,946 ) (970 )non-consolidatedinvestmentsInterest expense, 7,916 6,179 16,200 13,763 netOperating earnings (385,777 ) 14,523 (345,821 ) 33,061 Settlement of LTIA 471,928 - 471,928 - Depreciation and 34,574 25,940 72,351 50,830 amortizationGains attributable (5,841 ) (509 ) (14,916 ) (509 )to MSRsEquity earningsfrom 1,732 414 3,138 969 non-consolidatedinvestmentsAcquisition-related 16,695 3,784 35,542 6,534 itemsRestructuring costs 650 13,839 943 19,307 Stock-basedcompensation 2,597 1,971 5,522 4,224 expenseAdjusted EBITDA $ 136,558 $ 59,962 $ 228,687 $ 114,416

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) the settlement of the LTIA; (iii) amortization expense related to intangible assets recognized in connection with acquisitions and MSRs; (iv) gains attributable to MSRs; (v) acquisition-related items; (vi) restructuring costs and (vii) 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 three months and six months ended June 30, 2021 and June 30, 2020, the if-converted method is anti-dilutive for the GAAP diluted EPS calculation but dilutive for the adjusted EPS calculation.

Three months ended Six months ended June 30 June 30(in thousands of US$) 2021 2020 2021 2020 Net earnings $ (412,601 ) $ 6,483 $ (387,794 ) $ 12,942 Non-controllinginterest share of (11,745 ) (4,265 ) (19,525 ) (7,642 )earningsInterest on 2,300 1,059 4,600 1,059 Convertible NotesSettlement of LTIA 471,928 - 471,928 - Amortization of 23,533 17,089 50,871 33,101 intangible assetsGains attributable to (5,841 ) (509 ) (14,916 ) (509 )MSRsAcquisition-related 16,695 3,784 35,542 6,534 itemsRestructuring costs 650 13,839 943 19,307 Stock-based 2,597 1,971 5,522 4,224 compensation expenseIncome tax on (8,517 ) (7,442 ) (18,183 ) (13,247 )adjustmentsNon-controllinginterest on (3,460 ) (2,447 ) (6,795 ) (4,597 )adjustmentsAdjusted net earnings $ 75,539 $ 29,562 $ 122,193 $ 51,172 Three months ended Six months ended June 30 June 30(in US$) 2021 2020 2021 2020 Diluted net earnings $ (9.53 ) $ (0.25 ) $ (9.75 ) $ (0.14 )per common share^(1)Interest onConvertible Notes, 0.04 0.02 0.07 0.02 net of taxNon-controllinginterest redemption 0.67 0.30 0.96 0.27 incrementSettlement of LTIA 9.86 - 10.19 - Amortization expense, 0.29 0.25 0.66 0.49 net of taxGains attributable to (0.07 ) (0.01 ) (0.18 ) (0.01 )MSRs, net of taxAcquisition-related 0.26 0.10 0.56 0.17 itemsRestructuring costs, 0.01 0.24 0.01 0.35 net of taxStock-basedcompensation expense, 0.05 0.05 0.12 0.10 net of taxAdjusted EPS $ 1.58 $ 0.70 $ 2.64 $ 1.25 Diluted weightedaverage shares for 47,846 41,901 46,303 41,021 Adjusted EPS(thousands)^(1 ^)Amounts shown reflect the "if-converted" method's dilutive impact on theadjusted EPS calculation for the three and six months ended June 30, 2021 and2020.

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) 2021 2020 2021 2020 Revenues $ 945,994 $ 550,206 $ 1,720,908 $ 1,180,834 Cost of revenues 576,652 355,347 1,044,382 771,705 Selling, generaland administrative 231,922 150,612 442,526 318,704 expensesDepreciation 11,041 8,851 21,480 17,729 Amortization of 23,533 17,089 50,871 33,101 intangible assetsAcquisition-related 16,695 3,784 35,542 6,534 items (1)Settlement oflong-term incentive 471,928 - 471,928 - arrangementOperating earnings (385,777 ) 14,523 (345,821 ) 33,061 Interest expense, 7,916 6,179 16,200 13,763 netEquity earningsfrom unconsolidated (1,732 ) (414 ) (3,138 ) (969 )investmentsOther (income) loss (232 ) 148 (808 ) (1 )Earnings before (391,729 ) 8,610 (358,075 ) 20,268 income taxIncome tax 20,872 2,127 29,719 7,326 Net earnings (412,601 ) 6,483 (387,794 ) 12,942 Non-controllinginterest share of 11,745 4,265 19,525 7,642 earningsNon-controllinginterest redemption 31,771 12,530 44,311 11,025 incrementNet earningsattributable to $ (456,117 ) $ (10,312 ) $ (451,630 ) $ (5,725 )Company Net earnings per common share

$ (10.53 ) $ (0.26 ) $ (10.80 ) $ (0.14 )BasicDiluted (2) $ (10.53 ) $ (0.26 ) $ (10.80 ) $ (0.14 ) Adjusted EPS (3) $ 1.58 $ 0.70 $ 2.64 $ 1.25 Weighted averagecommon shares (thousands)Basic 43,329 39,930 41,801 39,902 Diluted 43,329 39,930 41,801 39,902

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(2) 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. The ?if-converted? method is anti-dilutive for the three-month and six-month periods ended June 30, 2021 and June 30, 2020.(3) See definition and reconciliation above.

COLLIERS INTERNATIONAL GROUP INC. CONDENSED CONSOLIDATED BALANCE SHEETS(in thousands of US$) June 30, December 31, June 30,(unaudited) 2021 2020 2020 Assets Cash and cash equivalents $ 147,515 $ 156,614 $ 147,169Restricted cash (1) 30,052 20,919 19,069Accounts receivable and contract 456,217 433,250 341,778assetsWarehouse receivables (2) 62,838 232,207 30,586Prepaids and other assets 205,294 192,821 177,674 Current assets 901,916 1,035,811 716,276Other non-current assets 100,526 94,679 87,980Fixed assets 139,598 129,221 107,207Operating lease right-of-use 319,768 288,134 260,613assetsDeferred tax assets, net 55,167 45,008 50,308Goodwill and intangible assets 1,663,937 1,699,314 1,572,605 Total assets $ 3,180,912 $ 3,292,167 $ 2,794,989 Liabilities and shareholders' equityAccounts payable and accrued $ 736,393 $ 748,660 $ 568,933liabilitiesOther current liabilities 131,336 53,661 50,947Long-term debt - current 2,142 9,024 7,397Warehouse credit facilities (2) 55,566 218,018 24,586Operating lease liabilities - 81,144 78,923 68,417current Current liabilities 1,006,581 1,108,286 720,280Long-term debt - non-current 537,956 470,871 619,809Operating lease liabilities - 298,668 251,680 230,366non-currentOther liabilities 103,658 158,366 102,676Deferred tax liabilities, net 38,729 50,523 24,329Convertible notes 224,578 223,957 223,462Redeemable non-controlling 448,271 442,375 375,057interestsShareholders' equity 522,471 586,109 499,010 Total liabilities and equity $ 3,180,912 $ 3,292,167 $ 2,794,989 Supplemental balance sheet informationTotal debt (3) $ 540,098 $ 479,895 $ 627,206Total debt, net of cash and cash 392,583 323,281 480,037equivalents (3)Net debt / pro forma adjusted 0.9 1.0 1.5EBITDA ratio (4)

Note to Condensed Consolidated Balance Sheets

(1) Restricted cash consists primarily of cash amounts set aside to satisfy legal or contractual requirements arising in the normal course of business. 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(3) credit facilities and convertible notes, in accordance with debt agreements.

COLLIERSINTERNATIONAL GROUP INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands of US$) Three months ended Six months ended June 30 June 30(unaudited) 2021 2020 2021 2020 Cash provided by (used in) Operating activitiesNet earnings $ (412,601 ) $ 6,483 $ (387,794 ) $ 12,942 (loss)Items not affecting cash: Depreciation and 34,574 25,940 72,351 50,830 amortization Settlement of long-term 375,742 - 375,742 - incentive arrangement Gains attributable to mortgage (5,841 ) (509 ) (14,916 ) (509 ) servicing rights Gains attributable to the fair value of (10,705 ) (1,810 ) (22,283 ) (1,810 ) loan premiums and origination fees Deferred (13,073 ) (6,839 ) (22,504 ) (13,997 ) income tax Other 19,394 11,163 61,285 24,603 (12,510 ) 34,428 61,881 72,059 (Increase)decrease inaccounts receivable,prepaid expenses and (55,446 ) 16,018 (79,233 ) 75,855 other assets(Decrease)increase inaccounts payable,accrued expenses and other 14,331 (5,495 ) 1,779 (34,254 ) liabilities(Decrease)increase in 82,799 (17,855 ) (1,677 ) (181,261 )accruedcompensationContingentacquisition (2,997 ) (1,354 ) (10,472 ) (15,684 )considerationpaidProceeds fromsale of 757,113 89,979 1,595,030 89,979 mortgage loansOrigination of (690,415 ) (87,099 ) (1,397,200 ) (87,099 )mortgage loansIncrease inwarehouse (50,371 ) (263 ) (162,452 ) (263 )creditfacilitiesRepurchasesfrom AR 14,183 (1,276 ) 10,892 (12,285 )Facility, netof salesNet cashprovided by(used in) 56,687 27,083 18,548 (92,953 )operatingactivities Investing activitiesAcquisition ofbusinesses, net (366 ) (133,840 ) (4,207 ) (136,941 )of cashacquiredPurchases of (10,510 ) (10,290 ) (32,603 ) (19,029 )fixed assetsPurchase ofheld for sale - 94,222 - 94,222 real estateassetsCashcollections onAR facility 11,824 15,069 22,732 26,459 deferredpurchase priceOther investing (9,696 ) (1,104 ) (20,789 ) 804 activitiesNet cash usedin investing (8,748 ) (35,943 ) (34,867 ) (34,485 )activities Financing activitiesIncrease inlong-term debt, 16,140 (118,002 ) 69,932 25,144 netPurchases ofnon-controlling (13,707 ) (19,719 ) (21,840 ) (24,395 )interests, netof salesDividends paidto common - - (2,009 ) (1,992 )shareholdersDistributionspaid to (21,305 ) (14,293 ) (35,228 ) (21,986 )non-controllinginterestsOther financing 1,496 (5,165 ) 6,464 (13,638 )activitiesNet cash (usedin) provided by (17,376 ) 72,821 17,319 193,133 financingactivities Effect ofexchange rate 888 (813 ) (966 ) (14,450 )changes on cash Increase in cash and cash equivalents and 31,451 63,148 34 51,245 restricted cashCash and cash equivalents and restricted cash, 146,116 103,090 177,533 114,993 beginning of periodCash and cash equivalents and restricted cash, end of $ 177,567 $ 166,238 $ 177,567 $ 166,238 period



COLLIERS INTERNATIONAL GROUP INC.SEGMENTED RESULTS(in thousands of US dollars) Asia Investment (unaudited) Americas EMEA Pacific Management Corporate Consolidated Three monthsended June 30 2021 Revenues $ 582,769 $ 158,571 $ 154,018 $ 50,477 $ 159 $ 945,994 Adjusted 78,923 20,640 20,677 21,330 (5,012 ) 136,558 EBITDA Operating earnings 63,239 14,393 16,692 14,157 (494,258 ) (385,777 ) (loss) 2020 Revenues $ 308,885 $ 99,614 $ 100,105 $ 41,389 $ 213 $ 550,206 Adjusted 24,376 6,323 12,255 17,350 (342 ) 59,962 EBITDA Operating earnings 3,415 (3,267 ) 5,091 10,648 (1,364 ) 14,523 (loss) Asia Investment Americas EMEA Pacific Management Corporate Consolidated Six monthsended June 30 2021 Revenues $ 1,058,546 $ 284,684 $ 282,269 $ 95,104 $ 305 $ 1,720,908 Adjusted 135,849 25,144 36,195 39,075 (7,576 ) 228,687 EBITDA Operating earnings 106,092 13,304 28,400 24,088 (517,705 ) (345,821 ) (loss) 2020 Revenues $ 678,875 $ 216,696 $ 197,539 $ 87,214 $ 510 $ 1,180,834 Adjusted 55,534 2,682 17,503 35,784 2,914 114,417 EBITDA Operating earnings 26,125 (16,718 ) 6,319 22,426 (5,091 ) 33,061 (loss)



COMPANY CONTACTS:Jay S. HennickChairman & Chief Executive Officer

Christian MayerChief Financial Officer(416) 960-9500