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Press release from Business Wire

CBRE Group, Inc. Reports Adjusted Earnings Per Share Growth of 20% for the Fourth Quarter and 18% for the Full Year of 2012

<p class='bwalignc'> <b>Adjusted EPS of $0.55 for the Quarter and $1.22 for the Year; Revenue up 14% for the Quarter and 10% for the Year</b> </p>

Wednesday, February 06, 2013

CBRE Group, Inc. Reports Adjusted Earnings Per Share Growth of 20% for the Fourth Quarter and 18% for the Full Year of 201216:05 EST Wednesday, February 06, 2013 LOS ANGELES (Business Wire) -- CBRE Group, Inc. (NYSE:CBG) today reported strong increases in revenue and earnings per share for the fourth quarter and year ended December 31, 2012. Fourth-Quarter 2012 Results Revenue for the quarter was $2.0 billion, up 14% from $1.8 billion in the fourth quarter of 2011. Excluding selected charges1, net income2 was $181.9 million, or $0.55 per diluted share, for the current quarter, up 22% and 20%, respectively, from $149.3 million, or $0.46 per diluted share, in the fourth quarter of 2011. For the current quarter, selected charges (net of income taxes), which primarily related to the acquisition of the ING REIM businesses (completed in 2011), totaled $8.9 million. For the same period in 2011, selected charges totaled $69.5 million. On a U.S. GAAP basis, net income was $173.0 million, or $0.53 per diluted share, for the fourth quarter of 2012, up 117% and 112%, respectively, from $79.8 million, or $0.25 per diluted share, for the prior-year fourth quarter. Excluding selected charges, Earnings Before Interest Taxes Depreciation and Amortization (EBITDA)3 increased 12% to $351.7 million for the fourth quarter of 2012 from $314.9 million a year earlier. EBITDA3 (including selected charges) was $345.7 million for the fourth quarter of 2012, an increase of 47% from $235.1 million for the same period last year. For the current quarter, selected charges were related to the aforementioned acquisition of the ING REIM businesses. Foreign currency translation did not have a significant impact on results in the current quarter. Full-Year 2012 Results Revenue for full-year 2012 rose to $6.5 billion, an increase of 10% (12% in local currency) from $5.9 billion in 2011. The 2012 revenue was the highest ever reported by CBRE. Excluding selected charges, net income for 2012 was $399.4 million, or $1.22 per diluted share, up 19% and 18%, respectively, from $334.5 million, or $1.03 per diluted share in 2011. Selected charges (net of income taxes), which primarily related to the acquisition of the ING REIM businesses, cost containment expenses and the impairment of assets, totaled $83.8 million for full-year 2012 and $95.3 million for the same period in 2011. On a U.S. GAAP basis, net income was $315.6 million, or $0.97 per diluted share, for 2012, up 32% and 31%, respectively, from $239.2 million, or $0.74 per diluted share, for 2011. Excluding selected charges, EBITDAtotaled $918.4 million for 2012, up 14% from $802.6 million a year earlier. EBITDA(including selected charges) rose 24% to $861.6 million for 2012, compared with $693.3 million for 2011. For 2012, selected charges were primarily related to the acquisition of the ING REIM businesses and cost containment expenses. Management Commentary “We are very pleased with our strong finish to 2012,” said Robert Sulentic, president and chief executive officer of CBRE. “Despite continued fiscal and economic uncertainty, all of our global operating regions delivered solid top-line growth in the fourth quarter. This growth was paced by the Americas, which benefited from particularly strong performance in our capital markets businesses. Following a sluggish third quarter, activity globally improved across all business lines in the fourth quarter. This continues a pattern of fluctuating market sentiment that has prevailed throughout the slow-paced recovery.” For 2012 as a whole, CBRE recorded the highest total revenue in its history and its highest earnings and normalized EBITDA since 2007. Reflecting on 2012 results, Mr. Sulentic said: “Our continued success in a cautious macro environment is a testament to the strength and diversity of our geographic footprint and broad product offering, our brand, and the ability of our professionals to work collaboratively to create value for our clients. We believe these qualities position CBRE very well to drive continued profitable growth, and enable us to invest prudently in our business.” CBRE's capital markets businesses – property sales and commercial mortgage brokerage -- were top performers in the fourth quarter. Global property sales revenue rose 22% as the Company completed single-asset and portfolio sales valued at more than $1 billion in the following markets: Berlin/Frankfurt, Moscow, New York, Seattle and Silicon Valley. Sales activity was especially strong in the Americas, rising 32%. Despite Europe's weakening economic growth and continued financial stresses, property sales in EMEA rose 13%, aided by robust performance in the UK. Commercial mortgage brokerage, predominantly a U.S. business, saw revenue improve 38% for the quarter, as loan origination activity remained strong. For the full year, total mortgage activity (loan originations and sales) climbed to $22.5 billion. Notwithstanding soft market conditions, leasing revenue rose 5% globally during the quarter, bringing full-year 2012 revenue for this business in line with the 2011 leasing revenue total. This fourth quarter performance was driven by the Americas and Asia Pacific. Outsourcing also grew significantly during the quarter, with revenue rising 13% globally. All three global regions posted double-digit revenue increases. In Global Corporate Services, 61 long-term contracts were signed during the quarter, and CBRE continued to aggressively expand its scope of services for existing clients: 21 of these 61 contracts were expansions – a new Company record. Revenue from global investment management rose 18% for the quarter, while adjusted EBITDA improved 48%. CBRE continues to see benefits from the integration of the ING REIM businesses acquired in 2011, which added higher margin revenue streams that are recurring in nature to the Company's business mix. The current quarter benefited from higher incentive fees and a full quarter of contribution from the ING REIM Europe business. Geographically, the Americas was CBRE's best-performing region during the fourth quarter. The strength of the Company's Americas capital markets businesses – coupled with its leading position in central business districts across the region -- led to a 16% overall revenue increase. All business lines in the Americas posted double-digit percentage gains, except leasing, which still posted solid growth of 7%. EMEA and Asia Pacific both posted 7% overall revenue increases for the quarter, with outsourcing providing the strongest gains in both regions. As noted, property sales also showed strong growth in EMEA, while Asia Pacific benefited from solid growth in the valuation and leasing business lines. Fourth-Quarter 2012 Segment ResultsAmericas Region (U.S., Canada and Latin America) Revenue rose 16% to $1.2 billion, compared with $1.1 billion for the fourth quarter of 2011. EBITDA rose 40% to $199.3 million from $142.5 million for the prior-year fourth quarter. Excluding selected charges incurred in 2011, EBITDA improved 26%. Operating income rose 43% to $169.8 million compared with $119.1 million in last year's fourth quarter. Prior-period operating income was impacted by $15.6 million of cost containment expenses. EMEA Region (primarily Europe) Revenue rose 7% to $357.5 million, compared with $334.6 million in the fourth quarter of 2011. The increase was primarily driven by improved performance in the United Kingdom, particularly in property sales. EBITDA rose 28% to $53.8 million from $42.1 million for the prior-year fourth quarter. Excluding selected charges incurred in 2011, EBITDA rose 1%. Operating income rose 15% to $45.0 million compared with $39.0 million in last year's fourth quarter. Prior-period operating income was impacted by $11.1 million of cost containment expenses. Asia Pacific Region (Asia, Australia and New Zealand) Revenue was $248.8 million, an increase of 7% from $231.7 million in the fourth quarter of 2011. This increase reflects improved performance in several countries, particularly Australia and Singapore. EBITDA rose 26% to $38.6 million from $30.5 million for the prior-year fourth quarter. Excluding selected charges incurred in 2011, EBITDA rose 10%. Operating income rose 32% to $36.0 million compared with $27.3 million in last year's fourth quarter. Prior-period operating income was impacted by $4.4 million of cost containment expenses. Global Investment Management Business (investment management operations in the U.S., Europe and Asia) Revenue rose 18% to $123.4 million from $104.8 million in the fourth quarter of 2011, largely driven by higher asset management and incentive fees. The fourth quarter of 2012 included an additional month of contribution from ING REIM Europe. EBITDA improved to $18.4 million from an EBITDA loss of $29.4 million in the fourth quarter of 2011. Excluding selected charges, EBITDA rose 48% to $24.4 million from $16.5 million in the prior-year fourth quarter. Operating income improved to $7.3 million, compared with an operating loss of $41.4 million for the fourth quarter of 2011. Current-period and prior-period operating income was affected by $5.9 million and $45.0 million, respectively, of expenses related to the acquisition of ING REIM. Assets under management totaled $92.0 billion at year-end 2012, up 2% from the third quarter of 2012, but down 2% from year-end 2011. The decrease from 2011 was driven, in part, by a non-traded REIT's decision to internalize its management, as reported in the second quarter of 2012, while the gain over the third quarter reflected increased values and favorable foreign currency effects. Development Services (real estate development and investment activities primarily in the U.S.) Revenue rose 35% to $28.4 million compared with $21.1 million for the fourth quarter of 2011. Operating loss narrowed to $25.3 million, from $27.3 million for the fourth quarter of 2011. EBITDA was $35.6 million in the current-year period, compared with $49.4 million for the same period in 2011. The weaker results reflect higher gains on the sale of properties in the fourth quarter of 2011, the majority of which was reported as equity income from unconsolidated subsidiaries and income from discontinued operations. These gains were partially offset by non-controlling interests activity. Equity income from unconsolidated subsidiaries, income from discontinued operations and activity associated with non-controlling interests are all included in the calculation of EBITDA, but not in revenue or operating income. Development projects in process totaled $4.2 billion, down $0.4 billion from the third quarter of 2012 and $0.7 billion from year-end 2011. The inventory of pipeline deals totaled $2.1 billion, up $0.2 billion from the third quarter of 2012 and $0.9 billion from year-end 2011. 2013 Outlook “As the market enters its fourth year of a slow recovery, we expect conditions to continue to improve gradually, tracking the performance of the global economy,” Mr. Sulentic said. “We are encouraged by positive underlying trends in the U.S. economy – and thus expect the Americas to remain the biggest near-term catalyst for our growth. We also expect to benefit from the recent strengthening in China, and the easing of credit-market tensions in Europe. However, fiscal and economic uncertainties remain high, particularly in Europe, and the overall pace of the recovery continues to be subpar. “Assuming the global economy plays out as anticipated, we expect to drive solid revenue and earnings increases in 2013. Further, we should see some margin expansion, even as we make greater investments in our people and platform that will enhance our competitive position and bolster long-term, profitable growth.” In light of the foregoing, CBRE expects to generate earnings per share, as adjusted, in the range of $1.40 to $1.45 for full-year 2013. Conference Call Details The Company's fourth-quarter earnings conference call will be held on Wednesday, February 6, 2013 at 5:00 p.m. Eastern Time. A webcast will be accessible through the Investor Relations section of the Company's website at www.cbre.com/investorrelations. The direct dial-in number for the conference call is 800-230-1059 for U.S. callers and 612-234-9960 for international callers. A replay of the call will be available starting at 10 p.m. Eastern Time on February 6, 2013, and ending at midnight Eastern Time on February 12, 2013. The dial-in number for the replay is 800-475-6701 for U.S. callers and 320-365-3844 for international callers. The access code for the replay is 280622. A transcript of the call will be available on the Company's Investor Relations website at www.cbre.com/investorrelations. About CBRE Group, Inc. CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world's largest commercial real estate services and investment firm (in terms of 2012 revenue). The Company has approximately 37,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com. Note: This release contains forward-looking statements within the meaning of the ''safe harbor'' provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding our future growth momentum, operations, financial performance, and business outlook. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results and performance in future periods to be materially different from any future results or performance suggested in forward-looking statements in this release. Any forward-looking statements speak only as of the date of this release and, except to the extent required by applicable securities laws, the Company expressly disclaims any obligation to update or revise any of them to reflect actual results, any changes in expectations or any change in events. If the Company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements. Factors that could cause results to differ materially include, but are not limited to: general conditions of financial liquidity for real estate transactions, including the impact of the European sovereign debt crisis and U.S. fiscal issues; our leverage and our ability to perform under our credit facilities; commercial real estate vacancy levels; employment conditions and their effect on vacancy rates; property values; rental rates; interest rates; our ability to leverage our platform to grow revenues and capture market share; continued growth in trends toward use of outsourced real estate services; our ability to control costs relative to revenue growth and expand EBITDA margins; our ability to retain and incentivize producers; our ability to identify, acquire and integrate synergistic and accretive businesses; expected levels of interest, depreciation and amortization expense resulting from completed acquisitions; maintaining our effective tax rate; realization of values in investment funds to offset related incentive compensation expense; a decline in asset values in, or a reduction in earnings or cash flow from, our investment programs, as well as related litigation, liabilities and reputational harm; and our ability to comply with laws and regulations related to our international operations, including the anti-corruption laws of the U.S. and other countries. Additional information concerning factors that may influence the Company's financial information is discussed under “Risk Factors”, “Management's Discussion and Analysis of Financial Condition and Results of Operations”, “Quantitative and Qualitative Disclosures About Market Risk” and “Forward-Looking Statements” in our Annual Report on Form 10-K for the year ended December 31, 2011, and under “Management's Discussion and Analysis of Financial Condition and Results of Operations”, “Quantitative and Qualitative Disclosures About Market Risk” and “Forward-Looking Statements” in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2012, as well as in the Company's press releases and other periodic filings with the Securities and Exchange Commission. Such filings are available publicly and may be obtained on the Company's website at www.cbre.com or upon written request from the CBRE Investor Relations Department at investorrelations@cbre.com. 1 Selected charges include integration and other costs related to acquisitions, amortization expense related to incentive fees and customer relationships acquired in the ING REIM and Trammell Crow Company (TCC) acquisitions, cost containment expenses and the write-down of impaired assets, including a non-amortizable intangible asset. 2 A reconciliation of net income attributable to CBRE Group, Inc. to net income attributable to CBRE Group, Inc., as adjusted for selected charges, is provided in the section of this press release entitled “Non-GAAP Financial Measures.” 3 EBITDA represents earnings before net interest expense, income taxes, depreciation and amortization, while amounts shown for EBITDA, as adjusted (or normalized EBITDA), remove the impact of certain cash and non-cash charges related to acquisitions, cost containment and asset impairments. Our management believes that both of these measures are useful in evaluating our operating performance compared to that of other companies in our industry because the calculations of EBITDA and EBITDA, as adjusted, generally eliminate the effects of financing and income taxes and the accounting effects of capital spending and acquisitions, which would include impairment charges of goodwill and intangibles created from acquisitions. Such items may vary for different companies for reasons unrelated to overall operating performance. As a result, our management uses these measures to evaluate operating performance and for other discretionary purposes, including as a significant component when measuring our operating performance under our employee incentive programs. Additionally, we believe EBITDA and EBITDA, as adjusted, are useful to investors to assist them in getting a more complete picture of our results from operations. However, EBITDA and EBITDA, as adjusted, are not recognized measurements under U.S. generally accepted accounting principles, or GAAP, and when analyzing our operating performance, readers should use EBITDA and EBITDA, as adjusted, in addition to, and not as an alternative for, net income as determined in accordance with GAAP. Because not all companies use identical calculations, our presentation of EBITDA and EBITDA, as adjusted, may not be comparable to similarly titled measures of other companies. Furthermore, EBITDA and EBITDA, as adjusted, are not intended to be measures of free cash flow for our management's discretionary use, as they do not consider certain cash requirements such as tax and debt service payments. The amounts shown for EBITDA and EBITDA, as adjusted, also differ from the amounts calculated under similarly titled definitions in our debt instruments, which are further adjusted to reflect certain other cash and non-cash charges and are used to determine compliance with financial covenants and our ability to engage in certain activities, such as incurring additional debt and making certain restricted payments. For a reconciliation of EBITDA and EBITDA, as adjusted to net income attributable to CBRE Group, Inc., the most comparable financial measure calculated and presented in accordance with GAAP, see the section of this press release titled “Non-GAAP Financial Measures.” CBRE GROUP, INC.OPERATING RESULTSFOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2012 AND 2011(Dollars in thousands, except share data)     Three Months EndedDecember 31,Twelve Months EndedDecember 31,   2012     2011   2012     2011 Revenue $ 2,005,846 $ 1,763,625 $ 6,514,099 $ 5,905,411   Costs and expenses: Cost of services 1,131,570 1,008,946 3,742,514 3,457,130 Operating, administrative and other 597,453 603,647 2,002,914 1,882,666 Depreciation and amortization 44,750 35,848 169,645 115,719 Non-amortizable intangible asset impairment   -   -   19,826   - Total costs and expenses 1,773,773 1,648,441 5,934,899 5,455,515   Gain on disposition of real estate   650   1,372   5,881   12,966   Operating income 232,723 116,556 585,081 462,862   Equity income from unconsolidated subsidiaries 40,859 65,815 60,729 104,776 Other income 6,458 8,515 11,093 2,706 Interest income 1,860 2,380 7,643 9,443 Interest expense   43,025   43,235   175,068   150,249 Income from continuing operations before provision for income taxes 238,875 150,031 489,478 429,538 Provision for income taxes   82,969   72,071   185,322   189,103 Income from continuing operations 155,906 77,960 304,156 240,435 Income from discontinued operations, net of income taxes   631   32,979   631   49,890 Net income 156,537 110,939 304,787 290,325 Less: Net (loss) income attributable to non-controlling interests   (16,461)   31,176   (10,768)   51,163 Net income attributable to CBRE Group, Inc. $ 172,998 $ 79,763 $ 315,555 $ 239,162     Basic income per shareattributable to CBRE Group, Inc. shareholders Income from continuing operations attributable to CBRE Group, Inc. $ 0.52 $ 0.23 $ 0.97 $ 0.73 Income from discontinued operations attributable to CBRE Group, Inc.   0.01   0.02   0.01   0.02 Net income attributable CBRE Group, Inc. $ 0.53 $ 0.25 $ 0.98 $ 0.75   Weighted average shares outstanding for basic income per share   325,372,928   320,638,316   322,315,576   318,454,191   Diluted income per shareattributable to CBRE Group, Inc. shareholders Income from continuing operations attributable to CBRE Group, Inc. $ 0.52 $ 0.23 $ 0.96 $ 0.72 Income from discontinued operations attributable to CBRE Group, Inc.   0.01   0.02   0.01   0.02 Net income attributable to CBRE Group, Inc. $ 0.53 $ 0.25 $ 0.97 $ 0.74   Weighted average shares outstanding for diluted income per share   329,012,910   324,117,111   327,044,145   323,723,755   EBITDA (1) $ 345,730 $ 235,130 $ 861,621 $ 693,261 __________________________ (1)   Includes EBITDA related to discontinued operations of $5.6 million and $12.2 million for the three months ended December 31, 2012 and 2011, respectively, and $5.6 million and $14.1 million for the twelve months ended December 31, 2012 and 2011, respectively. CBRE GROUP, INC.SEGMENT RESULTSFOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2012 AND 2011(Dollars in thousands)     Three Months EndedDecember 31,Twelve Months EndedDecember 31,   2012     2011   2012     2011Americas Revenue $ 1,247,703 $ 1,071,525 $ 4,103,602 $ 3,673,681 Costs and expenses: Cost of services 788,867 681,129 2,607,029 2,325,964 Operating, administrative and other 264,793 252,604 929,950 898,675 Depreciation and amortization   24,286   18,721   82,841   62,238 Operating income $ 169,757 $ 119,071 $ 483,782 $ 386,804 EBITDA $ 199,345 $ 142,508 $ 578,649 $ 462,167   EMEA Revenue $ 357,451 $ 334,555 $ 1,031,818 $ 1,076,568 Costs and expenses: Cost of services 198,012 185,890 624,498 638,351 Operating, administrative and other 109,945 106,474 358,696 351,304 Depreciation and amortization 4,524 3,239 14,198 10,945 Non-amortizable intangible asset impairment   -   -   19,826   - Operating income $ 44,970 $ 38,952 $ 14,600 $ 75,968 EBITDA $ 53,792 $ 42,057 $ 54,299 $ 87,527   Asia Pacific Revenue $ 248,845 $ 231,653 $ 817,241 $ 788,754 Costs and expenses: Cost of services 144,691 141,927 510,987 492,815 Operating, administrative and other 65,125 59,747 224,558 212,548 Depreciation and amortization   3,017   2,704   11,475   9,654 Operating income $ 36,012 $ 27,275 $ 70,221 $ 73,737 EBITDA $ 38,583 $ 30,530 $ 80,630 $ 82,226   Global Investment Management Revenue $ 123,409 $ 104,763 $ 482,589 $ 290,065 Costs and expenses: Operating, administrative and other 104,640 137,852 387,592 313,120 Depreciation and amortization 11,487 8,324 51,290 21,271 Gain on disposition of real estate   -   -   -   345 Operating income (loss) $ 7,282 $ (41,413) $ 43,707 $ (43,981) EBITDA(1) $ 18,434 $ (29,386) $ 96,359 $ (14,772)   Development Services Revenue $ 28,438 $ 21,129 $ 78,849 $ 76,343 Costs and expenses: Operating, administrative and other 52,950 46,970 102,118 107,019 Depreciation and amortization 1,436 2,860 9,841 11,611 Gain on disposition of real estate   650   1,372   5,881   12,621 Operating loss $ (25,298) $ (27,329) $ (27,229)   $ (29,666) EBITDA(2) $ 35,576 $ 49,421   $ 51,684 $ 76,113 _________________________ (1)   Includes EBITDA related to discontinued operations of $0.5 million and $2.1 for the three months ended December 31, 2012 and 2011, respectively and $0.5 million and $4.0 million for the twelve months ended December 31, 2012 and 2011, respectively. (2) Includes EBITDA related to discontinued operations of $5.1 million and $10.1 million for the three months ended December 31, 2012 and 2011, respectively and $5.1 million and $10.1 million for the twelve months ended December 31, 2012 and 2011, respectively. Non-GAAP Financial Measures The following measures are considered “non-GAAP financial measures” under SEC guidelines: (i) Net income attributable to CBRE Group, Inc., as adjusted for selected charges (ii) Diluted income per share attributable to CBRE Group, Inc, as adjusted for selected charges (iii) EBITDA and EBITDA, as adjusted for selected charges The Company believes that these non-GAAP financial measures provide a more complete understanding of ongoing operations and enhance comparability of current results to prior periods as well as presenting the effects of selected charges in all periods presented. The Company believes that investors may find it useful to see these non-GAAP financial measures to analyze financial performance without the impact of selected charges that may obscure trends in the underlying performance of its business. Net income attributable to CBRE Group, Inc., as adjusted for selected charges and diluted net income per share attributable to CBRE Group, Inc. shareholders, as adjusted for selected charges are calculated as follows (dollars in thousands, except per share data):   Three Months EndedDecember 31,   Twelve Months EndedDecember 31,   2012     2011   2012     2011   Net income attributable to CBRE Group, Inc. $ 172,998 $ 79,763 $ 315,555 $ 239,162 Integration and other costs related to acquisitions, net of tax 4,473 42,863 29,891 59,632 Amortization expense related to ING REIM and TCC incentive fees and customer relationships acquired, net of tax 4,437 3,868 25,421 9,396 Non-amortizable intangible asset impairment, net of tax - - 15,018 - Cost containment expenses, net of tax - 20,559 13,521 20,559 Write-down of impaired assets, net of tax   -   2,216   -   5,748 Net income attributable to CBRE Group, Inc., as adjusted $ 181,908 $ 149,269 $ 399,406 $ 334,497   Diluted income per share attributable to CBRE Group, Inc. shareholders, as adjusted $ 0.55 $ 0.46 $ 1.22 $ 1.03   Weighted average shares outstanding for diluted income per share   329,012,910   324,117,111   327,044,145   323,723,755   EBITDA and EBITDA, as adjusted for selected charges are calculated as follows (dollars in thousands):   Three Months EndedDecember 31,Twelve Months EndedDecember 31,   2012   2011   2012   2011   Net income attributable to CBRE Group, Inc. $ 172,998 $ 79,763 $ 315,555 $ 239,162 Add: Depreciation and amortization(1) 46,010 36,534 170,905 116,930 Non-amortizable intangible asset impairment - - 19,826 - Interest expense(2) 44,606 45,130 176,649 153,497 Provision for income taxes(3) 83,980 76,083 186,333 193,115 Less: Interest income   1,864   2,380   7,647   9,443   EBITDA(4) $ 345,730 $ 235,130 $ 861,621 $ 693,261   Adjustments: Integration and other costs related to acquisitions 5,927 45,084 39,240 68,788 Cost containment expenses - 31,139 17,578 31,139 Write-down of impaired assets   -   3,558   -   9,447   EBITDA, as adjusted (4) $ 351,657 $ 314,911 $ 918,439 $ 802,635 _________________________ (1)   Includes depreciation and amortization expense related to discontinued operations of $1.3 million and $0.7 million for the three months ended December 31, 2012 and 2011, respectively and $1.3 million and $1.2 million for the twelve months ended December 31, 2012 and 2011, respectively. (2) Includes interest expense related to discontinued operations of $1.6 million and $1.9 million for the three months ended December 31, 2012 and 2011, respectively and $1.6 million and $3.2 million for the twelve months ended December 31, 2012 and 2011, respectively. (3) Includes provision for income taxes related to discontinued operations of $1.0 million and $4.0 million for the three months ended December 31, 2012 and 2011, respectively and $1.0 million and $4.0 million for the twelve months ended December 31, 2012 and 2011, respectively. (4) Includes EBITDA related to discontinued operations of $5.6 million and $12.2 million for the three months ended December 31, 2012 and 2011, respectively and $5.6 million and $14.1 million for the twelve months ended December 31, 2012 and 2011, respectively. EBITDA and EBITDA, as adjusted for selected charges for segments are calculated as follows (dollars in thousands):   Three Months EndedDecember 31,   Twelve Months EndedDecember 31,   2012     2011   2012     2011Americas Net income attributable to CBRE Group, Inc. $ 124,679 $ 45,675 $ 267,313 $ 182,107 Add: Depreciation and amortization 24,286 18,721 82,841 62,238 Interest expense 18,266 37,147 124,633 118,916 Royalty and management service income (11,435) (9,026) (32,214) (29,729) Provision for income taxes 44,634 53,280 140,634 136,803 Less: Interest income   1,085   3,289   4,558   8,168 EBITDA $ 199,345 $ 142,508 $ 578,649 $ 462,167 Integration and other costs related to acquisitions - 10 - 126 Cost containment expenses   -   15,646   -   15,646 EBITDA, as adjusted $ 199,345 $ 158,164 $ 578,649 $ 477,939     EMEA Net income attributable to CBRE Group, Inc. $ 28,802 $ 22,834 $ 9,846 $ 37,155 Add: Depreciation and amortization 4,524 3,239 14,198 10,945 Non-amortizable intangible asset impairment - - 19,826 - Interest expense 2,414 1,446 9,152 1,633 Royalty and management service expense 3,688 4,482 12,654 14,142 Provision for income taxes 18,509 12,785 7,170 27,253 Less: Interest income   4,145   2,729   18,547   3,601 EBITDA $ 53,792 $ 42,057 $ 54,299 $ 87,527 Cost containment expenses   -   11,089   15,331   11,089 EBITDA, as adjusted $ 53,792 $ 53,146 $ 69,630 $ 98,616     Asia Pacific Net income attributable to CBRE Group, Inc. $ 17,370 $ 17,143 $ 35,040 $ 32,815 Add: Depreciation and amortization 3,017 2,704 11,475 9,654 Interest expense 1,453 911 4,641 3,535 Royalty and management service expense 3,688 4,352 15,388 14,666 Provision for income taxes 13,187 5,552 14,840 22,637 Less: Interest income   132   132   754   1,081 EBITDA $ 38,583 $ 30,530 $ 80,630 $ 82,226 Cost containment expenses - 4,404 2,247 4,404 Integration and other costs related to acquisitions   -   36   -   1,932 EBITDA, as adjusted $ 38,583 $ 34,970 $ 82,877 $ 88,562 Three Months EndedDecember 31,   Twelve Months EndedDecember 31,2012   20112012   2011Global Investment Management Net loss attributable to CBRE Group, Inc. $ (16,829) $ (32,689) $ (14,872) $ (44,938) Add: Depreciation and amortization(1) 11,754 8,952 51,557 22,424 Interest expense(2) 23,837 6,706 44,818 20,892 Royalty and management service expense 4,059 192 4,172 921 (Benefit of) provision for income taxes (4,106) (12,181) 11,805 (13,404) Less: Interest income 281 366 1,121 667 EBITDA(3) $ 18,434 $ (29,386) $ 96,359 $ (14,772) Integration and other costs related to acquisitions 5,927 45,038 39,240 66,730 Write-down of impaired assets - 846 - 5,301 EBITDA, as adjusted(3) $ 24,361 $ 16,498 $ 135,599 $ 57,259       Development Services Net income attributable to CBRE Group, Inc. $ 18,976 $ 26,800 $ 18,228 $ 32,023 Add: Depreciation and amortization(4) 2,429 2,918 10,834 11,669 Interest expense(5) 2,686 3,183 11,288 12,784 Provision for income taxes(6) 11,756 16,647 11,884 19,826 Less: Interest income 271 127 550 189 EBITDA(7) $ 35,576 $ 49,421 $ 51,684 $ 76,113 Write-down of impaired assets - 2,712 - 4,146 EBITDA, as adjusted(7) $ 35,576 $ 52,133 $ 51,684 $ 80,259 _________________________ (1)   Includes depreciation and amortization expense related to discontinued operations of $0.3 million and $0.6 million for the three months ended December 31, 2012 and 2011, respectively and $0.3 million and $1.2 million twelve months ended December 31, 2012 and 2011, respectively. (2) Includes interest expense related to discontinued operations of $0.2 million and $1.5 million for the three months ended December 31, 2012 and 2011, respectively and $0.2 million and $2.8 million for the twelve months ended December 31, 2012 and 2011, respectively. (3) Includes EBITDA related to discontinued operations of $0.5 million and $2.1 million for the three months ended December 31, 2012 and 2011, respectively and $0.5 million and $4.0 million for the twelve months ended December 31, 2012 and 2011, respectively. (4) Includes depreciation and amortization expense related to discontinued operations of $1.0 million and $0.1 million for the three months ended December 31, 2012 and 2011, respectively and $1.0 million and $0.1 million for the twelve months ended December 31, 2012 and 2011, respectively. (5) Includes interest expense related to discontinued operations of $1.4 million and $0.4 million for the three months ended December 31, 2012 and 2011, respectively and $1.4 million and $0.4 million for the twelve months ended December 31, 2012 and 2011, respectively. (6) Includes provision for income taxes related to discontinued operations of $1.0 million and $4.0 million for the three months ended December 31, 2012 and 2011, respectively and $1.0 million and $4.0 million for the twelve months ended December 31, 2012 and 2011, respectively. (7) Includes EBITDA related to discontinued operations of $5.1 million and $10.1 million for the three months ended December 31, 2012 and 2011, respectively and $5.1 million and $10.1 million for the twelve months ended December 31, 2012 and 2011, respectively. CBRE GROUP, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(Dollars in thousands)December 31,   December 31,   2012   2011 Assets: Cash and cash equivalents (1) $ 1,089,297 $ 1,093,182 Restricted cash 73,676 67,138 Receivables, net 1,262,823 1,135,371 Warehouse receivables (2) 1,048,340 720,061 Real estate assets (3) 392,860 464,468 Goodwill and other intangibles, net 2,676,395 2,622,732 Investments in and advances to unconsolidated subsidiaries 206,798 166,832 Other assets, net   1,059,353   949,359 Total assets $ 7,809,542 $ 7,219,143 Liabilities: Current liabilities, excluding debt $ 1,663,022 $ 1,688,034 Warehouse lines of credit (2) 1,026,381 713,362 Revolving credit facility 72,964 44,825 Senior secured term loans 1,627,746 1,683,561 Senior subordinated notes, net 440,523 439,016 Senior notes 350,000 350,000 Other debt 9,352 125 Notes payable on real estate (4) 326,012 372,912 Other long-term liabilities   611,730   510,145 Total liabilities 6,127,730 5,801,980   CBRE Group, Inc. stockholders' equity 1,539,211 1,151,481 Non-controlling interests   142,601   265,682 Total equity 1,681,812 1,417,163     Total liabilities and equity $ 7,809,542 $ 7,219,143 (1)   Includes $94.6 million and $208.1 million of cash in consolidated funds and other entities not available for Company use at December 31, 2012 and December 31, 2011, respectively. (2) Represents loan receivables, the majority of which are offset by related warehouse lines of credit facilities. (3) Includes real estate and other assets held for sale, real estate under development and real estate held for investment. (4) Represents notes payable on real estate of which $13.9 million and $13.6 million are recourse to the Company as of December 31, 2012 and December 31, 2011, respectively. CBRE Group, Inc.Gil BorokChief Financial Officer310.405.8909orNick KormelukInvestor Relations949.809.4308orSteve IacoCorporate Communications212.984.6535