EX-99.1 2 exh_991.htm PRESS RELEASE

EXHIBIT 99.1

Colliers International reports financial results for third quarter

Quarterly revenue up 10% (11% in local currency); Year to date revenue up 13% (16% in local currency)

Operating highlights:

|  | Three months ended |  | Nine months ended
|  | September 30 |  | September 30
(in millions of US$, except EPS measures) | 2016 |  | 2015 |  | 2016 |  | 2015
Revenues | $ | 462.1 |  | $ | 420.3 |  | $ | 1,320.7 |  | $ |  | 1,165.9 |
Adjusted EBITDA (note 1) |  | 37.6 |  |  | 43.0 |  |  | 112.6 |  |  |  | 102.2 |
Adjusted EPS (note 2) |  | 0.40 |  |  | 0.52 |  |  | 1.22 |  |  |  | 1.21 |
GAAP Operating Earnings |  | 23.6 |  |  | 29.8 |  |  | 70.1 |  |  |  | 15.4 |
GAAP EPS from continuing operations |  | 0.24 |  |  | 0.20 |  |  | 0.61 |  |  |  | (0.37 | )

TORONTO, Oct. 28, 2016 (GLOBE NEWSWIRE) -- Colliers International Group Inc. (NASDAQ:CIGI) (TSX:CIG) today reported solid financial results for its third quarter ended September 30, 2016. All amounts are in US dollars.

Revenues for the third quarter were $462.1 million, a 10% increase (11% in local currency (note 3)) relative to the same quarter in the prior year and Adjusted EBITDA (note 1) was $37.6 million, down from a strong $43.0 million in the prior year period. Adjusted EPS (note 2) was $0.40, relative to $0.52 in the prior year period. GAAP Operating Earnings were $23.6 million, relative to $29.8 million in the prior year and GAAP EPS was $0.24 per share, versus $0.20 per share for the same quarter a year ago.

For the nine months ended September 30, 2016, revenues were $1.32 billion, a 13% increase (16% in local currency) relative to the comparable prior year period and Adjusted EBITDA was $112.6 million, up 10% (13% in local currency). Adjusted EPS was $1.22, up 1% versus the prior year period. Year-to-date Adjusted EPS would have been approximately $0.04 higher excluding foreign exchange impacts. GAAP Operating Earnings were $70.1 million, relative to $15.4 million in the prior year period and GAAP EPS was $0.61 per share, compared to a loss of $0.37 per share in the prior year period. Similarly, year-to-date GAAP EPS would have been approximately $0.04 higher excluding changes in foreign exchange rates. Prior year GAAP Operating Earnings and GAAP EPS results included one-time charges related to the separation from FirstService Corporation completed on June 1, 2015.

“Colliers delivered solid results in the third quarter despite challenging market conditions in the UK and Europe, highlighting the strength of our geographic and service line diversification,” said Jay S. Hennick, Chairman and CEO of Colliers International. “We completed three acquisitions during the quarter, two in the Americas and one in EMEA and just after the quarter ended, we added a fourth in the UK. We also appointed a new member to our board of directors, adding Canada’s former Prime Minister Stephen Harper who brings a wealth of experience as a former G7 leader. Most importantly, our strategy remains focused on building Colliers over the long term - investing prudently and strategically, and leveraging our strong balance sheet to capture opportunities as they present themselves. Assuming stable market conditions and with our strong pipelines currently in place, we expect to exceed the results reported in the fourth quarter of 2015,” he concluded.

About Colliers International Group Inc.
Colliers International Group Inc. (NASDAQ:CIGI) (TSX:CIG) is an industry leading global real estate services company with more than 16,000 skilled professionals operating in 66 countries. With an enterprising culture and significant employee ownership, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include strategic advice and execution for property sales, leasing and finance; global corporate solutions; property, facility and project management; workplace solutions; appraisal, valuation and tax consulting; customized research; and thought leadership consulting.

Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice that help clients accelerate their success. Colliers has been ranked among the top 100 outsourcing firms by the International Association of Outsourcing Professionals’ Global Outsourcing for 11 consecutive years, more than any other real estate services firm.

For the latest news from Colliers, visit Colliers.com or follow us on Twitter: @Colliers and LinkedIn.

Consolidated Revenues

| (in thousands of US$) |  | Three months ended |  |  |  | Nine months ended |  |
| (RC = reporting currency) |  | September 30 | Growth | Growth |  | September 30 | Growth | Growth
| (LC = local currency) |  | 2016 |  | 2015 | in RC % | in LC % |  | 2016 |  | 2015 | in RC % | in LC %
| Outsourcing & Advisory | $ | 180,223 |  | $ | 154,239 |  | 17 | % |  | 18 | % |  | $ | 519,850 |  | $ | 443,498 |  | 17 | % |  | 20 | %
| Lease Brokerage |  | 147,958 |  |  | 136,742 |  | 8 | % |  | 9 | % |  |  | 412,650 |  |  | 378,236 |  | 9 | % |  | 11 | %
| Sales Brokerage |  | 133,871 |  |  | 129,297 |  | 4 | % |  | 3 | % |  |  | 388,196 |  |  | 344,138 |  | 13 | % |  | 15 | %
| Total revenues |  | $ | 462,052 |  | $ | 420,278 |  | 10 | % |  | 11 | % |  | $ | 1,320,696 |  | $ | 1,165,872 |  | 13 | % |  | 16 | %

Consolidated revenues for the third quarter grew 11% on a local currency basis, with each service line contributing strongly with the exception of Sales Brokerage which was up only 3%. Consolidated internal revenue growth in local currencies was 1% (note 3) with the balance coming from acquisitions completed during the past year.

For the nine months ended September 30, 2016, consolidated revenues grew 16% on a local currency basis with each service line contributing strongly. Year-to-date consolidated internal revenue growth in local currencies was 6% with the balance coming from acquisitions completed during the past year.

Segmented Quarterly Results
Revenues in the Americas region totalled $256.5 million for the third quarter compared to $223.9 million in the prior year quarter, up 15% (15% on a local currency basis). All local currency revenue growth came from recent acquisitions. Internal revenue growth was flat relative to the strong results reported in the prior year quarter, with a change in mix toward Outsourcing & Advisory services. Adjusted EBITDA was $22.6 million, versus $22.8 million in the prior year quarter. Margins were negatively impacted by a reduction in broker productivity resulting from smaller average transaction sizes, as well as a greater proportion of more stable Outsourcing & Advisory revenues which generate lower margins. GAAP Operating Earnings were $16.3 million, versus $17.9 million in the prior period.

EMEA region revenues totalled $106.6 million for the third quarter compared to $107.6 million in the prior year quarter, down 1% (up 4% on a local currency basis). Local currency revenue growth was comprised of a 1% internal decline and 5% growth from recent acquisitions. Internal revenues were impacted by a decline in Sales Brokerage, reflecting both the strong comparative quarter in 2015 and the effect of the June 2016 “Brexit” referendum, largely offset by a 15% increase in Outsourcing & Advisory services revenues. Adjusted EBITDA was $4.5 million, versus $13.2 million in the prior year quarter, and was impacted primarily by the above-noted change in revenue mix. The GAAP Operating Loss was $0.4 million, versus Operating Earnings of $8.5 million in the prior year quarter.

Asia Pacific region revenues totalled $98.6 million for the third quarter compared to $88.5 million in the prior year quarter, up 12% (9% on a local currency basis), entirely from internal growth, with contributions from all three service lines. Adjusted EBITDA was $13.2 million versus $8.7 million in the prior year quarter. The prior year quarter results were impacted by recruiting costs and transaction costs for an acquisition that was ultimately not completed. GAAP Operating Earnings were $11.6 million, up from $6.8 million in the prior year period.

Global corporate costs were $2.6 million in the third quarter, relative to $1.7 million in the prior year period. The GAAP Operating Loss for the third quarter was $4.0 million, relative to $3.4 million in the prior period. Prior year costs were favourably impacted by foreign currency translation.

Conference Call
Colliers will be holding a conference call on Friday, October 28, 2016 at 11:00 a.m. Eastern Time to discuss the quarter’s 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 www.colliers.com in the “Shareholders / Newsroom” section.

Forward-looking Statements
This press release includes or may include forward-looking statements. Forward-looking statements include the Company’s 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 cap 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 Company’s Canadian dollar, Australian dollar, UK pound and Euro denominated revenues and expenses; 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 licensure, labour and employment laws and regulations, as well as the anti-corruption laws and trade sanctions; political conditions, including political instability and any outbreak or escalation of terrorism or hostilities and the impact thereof on our business; and changes in government laws and policies at the federal, state/provincial or local level that may adversely impact the business.

Additional information and factors are identified in the Company’s Annual Information Form for the year ended December 31, 2015 under the heading “Risk Factors” (which factors are adopted herein and a copy of which can be obtained at www.sedar.com) and other periodic filings with Canadian and US securities regulators. 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 quarterly financial statements and MD&A to be made available on SEDAR at www.sedar.com.

Notes
1. Reconciliation of net earnings (loss) from continuing operations to adjusted EBITDA:

Adjusted EBITDA is defined as net earnings from continuing operations, adjusted to exclude: (i) income tax; (ii) other expense (income); (iii) interest expense; (iv) depreciation and amortization; (v) acquisition-related items; (vi) corporate costs allocated to spin-off; (vii) restructuring costs and (viii) stock-based compensation expense. We use adjusted EBITDA to evaluate our own operating performance and our ability to incur 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 Company’s 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 Company’s 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 from continuing operations 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 from continuing operations to adjusted EBITDA appears below.

|  | Three months ended |  | Nine months ended
(in thousands of US$) | September 30 |  | September 30
|  | 2016 |  | 2015 |  | 2016 |  | 2015
Net earnings (loss) from continuing operations | $ |  | 13,461 |  |  | $ |  | 18,414 |  |  | $ |  | 41,250 |  |  | $ |  | (2,904 | )
Income tax |  |  | 8,207 |  |  |  |  | 9,226 |  |  |  |  | 24,138 |  |  |  |  | 12,076 |
Other income, net |  |  | (362 | ) |  |  |  | (461 | ) |  |  |  | (2,183 | ) |  |  |  | (287 | )
Interest expense, net |  |  | 2,321 |  |  |  |  | 2,631 |  |  |  |  | 6,913 |  |  |  |  | 6,522 |
Operating earnings (loss) |  |  | 23,627 |  |  |  |  | 29,810 |  |  |  |  | 70,118 |  |  |  |  | 15,407 |
Depreciation and amortization |  |  | 11,390 |  |  |  |  | 9,794 |  |  |  |  | 33,038 |  |  |  |  | 28,068 |
Acquisition-related items |  |  | 352 |  |  |  |  | 1,655 |  |  |  |  | 2,397 |  |  |  |  | 3,696 |
Spin-off stock-based compensation costs |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 35,400 |
Spin-off transaction costs |  |  | - |  |  |  |  | 1,013 |  |  |  |  | - |  |  |  |  | 14,147 |
Corporate costs allocated to spin-off |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 2,010 |
Restructuring costs |  |  | 1,804 |  |  |  |  | - |  |  |  |  | 4,580 |  |  |  |  | - |
Stock-based compensation expense |  |  | 471 |  |  |  |  | 771 |  |  |  |  | 2,489 |  |  |  |  | 3,463 |
Adjusted EBITDA | $ |  | 37,645 |  |  | $ |  | 43,043 |  |  | $ |  | 112,622 |  |  | $ |  | 102,191 |

2. Reconciliation of net earnings (loss) from continuing operations and diluted net earnings (loss) per share from continuing operations to adjusted net earnings and adjusted earnings per share:

Adjusted earnings per share is defined as diluted net earnings (loss) per share from continuing operations, 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; (iii) acquisition-related items; (iv) corporate costs allocated to spin-off; (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 earnings per share 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 from continuing operations to adjusted net earnings and of diluted net earnings (loss) per share from continuing operations to adjusted earnings per share appears below.

|  | Three months ended |  | Nine months ended
(in thousands of US$) | September 30 |  | September 30
|  | 2016 |  | 2015 |  | 2016 |  | 2015
Net earnings (loss) from continuing operations | $ |  | 13,461 |  |  | $ |  | 18,414 |  |  | $ |  | 41,250 |  |  | $ |  | (2,904 | )
Non-controlling interest share of earnings |  |  | (3,286 | ) |  |  |  | (4,566 | ) |  |  |  | (11,259 | ) |  |  |  | (13,386 | )
Amortization of intangible assets |  |  | 5,192 |  |  |  |  | 4,312 |  |  |  |  | 15,619 |  |  |  |  | 11,943 |
Acquisition-related items |  |  | 352 |  |  |  |  | 1,655 |  |  |  |  | 2,397 |  |  |  |  | 3,696 |
Spin-off stock-based compensation costs |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 35,400 |
Spin-off transaction costs |  |  | - |  |  |  |  | 1,013 |  |  |  |  | - |  |  |  |  | 14,147 |
Corporate costs allocated to spin-off |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 2,048 |
Restructuring costs |  |  | 1,804 |  |  |  |  | - |  |  |  |  | 4,580 |  |  |  |  | - |
Stock-based compensation expense |  |  | 471 |  |  |  |  | 771 |  |  |  |  | 2,489 |  |  |  |  | 3,463 |
Income tax on adjustments |  |  | (2,117 | ) |  |  |  | (1,597 | ) |  |  |  | (6,356 | ) |  |  |  | (9,067 | )
Non-controlling interest on adjustments |  |  | (399 | ) |  |  |  | - |  |  |  |  | (1,332 | ) |  |  |  | (163 | )
Adjusted net earnings | $ |  | 15,478 |  |  | $ |  | 20,002 |  |  | $ |  | 47,388 |  |  | $ |  | 45,177 |
|  | Three months ended |  | Nine months ended
(in US$) | September 30 |  | September 30
|  | 2016 |  | 2015 |  | 2016 |  | 2015
Diluted net earnings (loss) per share from continuing operations | $ |  | 0.24 |  |  | $ |  | 0.20 |  |  | $ |  | 0.61 |  |  | $ |  | (0.37 | )
Non-controlling interest redemption increment |  |  | 0.02 |  |  |  |  | 0.16 |  |  |  |  | 0.16 |  |  |  |  | (0.08 | )
Amortization of intangible assets, net of tax |  |  | 0.09 |  |  |  |  | 0.08 |  |  |  |  | 0.25 |  |  |  |  | 0.22 |
Acquisition-related items |  |  | 0.01 |  |  |  |  | 0.04 |  |  |  |  | 0.06 |  |  |  |  | 0.10 |
Spin-off stock-based compensation costs |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 0.95 |
Spin-off transaction costs, net of tax |  |  | - |  |  |  |  | 0.02 |  |  |  |  | - |  |  |  |  | 0.27 |
Corporate costs allocated to spin-off, net of tax |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 0.04 |
Restructuring costs, net of tax |  |  | 0.03 |  |  |  |  | - |  |  |  |  | 0.08 |  |  |  |  | - |
Stock-based compensation expense, net of tax |  |  | 0.01 |  |  |  |  | 0.02 |  |  |  |  | 0.06 |  |  |  |  | 0.08 |
Adjusted earnings per share | $ |  | 0.40 |  |  | $ |  | 0.52 |  |  | $ |  | 1.22 |  |  | $ |  | 1.21 |

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 acquired entities were owned for the entire current period as well as the entire prior period. Revenue from acquired entities is estimated based on the operating performance of each acquired entity for the year prior to the acquisition date. We believe that these revenue growth rate methodologies provide a framework for assessing the Company’s 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.

COLLIERS INTERNATIONAL GROUP INC.
Condensed Consolidated Statements of Earnings (Loss)
(in thousands of US dollars, except per share amounts)
|  |  |  |  | Three months |  |  | Nine months
|  |  |  |  | ended September 30 |  |  | ended September 30
(unaudited) |  |  |  | 2016 |  |  |  |  | 2015 |  |  |  |  | 2016 |  |  |  |  | 2015 |
Revenues |  | $ |  | 462,052 |  |  | $ |  | 420,278 |  |  | $ |  | 1,320,696 |  |  | $ |  | 1,165,872 |
Cost of revenues |  |  |  | 301,073 |  |  |  |  | 265,510 |  |  |  |  | 832,908 |  |  |  |  | 713,520 |
Selling, general and administrative expenses |  |  |  | 125,610 |  |  |  |  | 112,496 |  |  |  |  | 382,235 |  |  |  |  | 355,634 |
Depreciation |  |  |  | 6,198 |  |  |  |  | 5,482 |  |  |  |  | 17,419 |  |  |  |  | 16,125 |
Amortization of intangible assets |  |  |  | 5,192 |  |  |  |  | 4,312 |  |  |  |  | 15,619 |  |  |  |  | 11,943 |
Acquisition-related items (1) |  |  |  | 352 |  |  |  |  | 1,655 |  |  |  |  | 2,397 |  |  |  |  | 3,696 |
Spin-off stock-based compensation costs (2) |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 35,400 |
Spin-off transaction costs (3) |  |  |  | - |  |  |  |  | 1,013 |  |  |  |  | - |  |  |  |  | 14,147 |
Operating earnings |  |  |  | 23,627 |  |  |  |  | 29,810 |  |  |  |  | 70,118 |  |  |  |  | 15,407 |
Interest expense, net |  |  |  | 2,321 |  |  |  |  | 2,631 |  |  |  |  | 6,913 |  |  |  |  | 6,522 |
Other expense (income) |  |  |  | (362 | ) |  |  |  | (461 | ) |  |  |  | (2,183 | ) |  |  |  | (287 | )
Earnings before income tax |  |  |  | 21,668 |  |  |  |  | 27,640 |  |  |  |  | 65,388 |  |  |  |  | 9,172 |
Income tax |  |  |  | 8,207 |  |  |  |  | 9,226 |  |  |  |  | 24,138 |  |  |  |  | 12,076 |
Net earnings (loss) from continuing operations |  |  |  | 13,461 |  |  |  |  | 18,414 |  |  |  |  | 41,250 |  |  |  |  | (2,904 | )
Discontinued operations, net of income tax (4) |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 1,104 |
Net earnings (loss) |  |  |  | 13,461 |  |  |  |  | 18,414 |  |  |  |  | 41,250 |  |  |  |  | (1,800 | )
Non-controlling interest share of earnings |  |  |  | 3,286 |  |  |  |  | 4,566 |  |  |  |  | 11,259 |  |  |  |  | 13,386 |
Non-controlling interest redemption increment |  |  |  | 671 |  |  |  |  | 6,185 |  |  |  |  | 6,279 |  |  |  |  | (2,835 | )
Net earnings (loss) attributable to Company |  | $ |  | 9,504 |  |  | $ |  | 7,663 |  |  | $ |  | 23,712 |  |  | $ |  | (12,351 | )
Net earnings (loss) per common share |  |  |  |  |  |  |  |  |  |  |  |
| Basic |  |  |  |  |  |  |  |  |  |  |  |
|  | Continuing operations |  | $ |  | 0.25 |  |  | $ |  | 0.20 |  |  | $ |  | 0.61 |  |  | $ |  | (0.37 | )
|  | Discontinued operations |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 0.03 |
|  |  | $ |  | 0.25 |  |  | $ |  | 0.20 |  |  | $ |  | 0.61 |  |  | $ |  | (0.34 | )
| Diluted |  |  |  |  |  |  |  |  |  |  |  |
|  | Continuing operations |  | $ |  | 0.24 |  |  | $ |  | 0.20 |  |  | $ |  | 0.61 |  |  | $ |  | (0.37 | )
|  | Discontinued operations |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 0.03 |
|  |  | $ |  | 0.24 |  |  | $ |  | 0.20 |  |  | $ |  | 0.61 |  |  | $ |  | (0.34 | )
Adjusted earnings per share (5) |  | $ |  | 0.40 |  |  | $ |  | 0.52 |  |  | $ |  | 1.22 |  |  | $ |  | 1.21 |
Weighted average common shares (thousands) |  |  |  |  |  |  |  |  |  |  |  |
|  | Basic |  |  |  | 38,601 |  |  |  |  | 37,973 |  |  |  |  | 38,584 |  |  |  |  | 36,825 |
|  | Diluted |  |  |  | 38,950 |  |  |  |  | 38,431 |  |  |  |  | 38,859 |  |  |  |  | 37,242 |

Notes to Condensed Consolidated Statements of Earnings (Loss)
(1) Acquisition-related items include transaction costs, contingent acquisition consideration fair value adjustments, and contingent acquisition consideration-related compensation expense.
(2) Stock-based compensation costs related to the exchange of non-controlling interests in the former Commercial Real Estate Services division for publicly traded shares of Colliers International Group Inc., in connection with the spin-off completed on June 1, 2015.
(3) Transaction costs related to the spin-off of FirstService Corporation completed on June 1, 2015.
(4) Discontinued operations comprise FirstService Corporation, which was spun off on June 1, 2015.
(5) See definition and reconciliation above.

Condensed Consolidated Balance Sheets |  |  |  |  |  |  |  |
(in thousands of US dollars) |  |  |
(unaudited) | September 30, 2016 |  | December 31, 2015 |  | September 30, 2015
Assets |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 108,910 |  | $ | 116,150 |  | $ | 98,167
Accounts receivable |  | 278,981 |  |  | 298,466 |  |  | 269,675
Prepaids and other assets |  | 94,797 |  |  | 81,363 |  |  | 85,039
| Current assets |  | 482,688 |  |  | 495,979 |  |  | 452,881
Other non-current assets |  | 35,945 |  |  | 23,209 |  |  | 21,929
Fixed assets |  | 63,801 |  |  | 62,553 |  |  | 61,770
Deferred income tax, net |  | 79,743 |  |  | 84,038 |  |  | 90,273
Goodwill and intangible assets |  | 498,100 |  |  | 426,642 |  |  | 410,210
| Total assets | $ | 1,160,277 |  | $ | 1,092,421 |  | $ | 1,037,063
Liabilities and shareholders' equity |  |  |  |  |  |  |  |
Accounts payable and accrued liabilities | $ | 414,194 |  | $ | 455,243 |  | $ | 388,934
Other current liabilities |  | 15,423 |  |  | 20,698 |  |  | 17,327
Long-term debt - current |  | 2,609 |  |  | 3,200 |  |  | 3,778
| Current liabilities |  | 432,226 |  |  | 479,141 |  |  | 410,039
Long-term debt - non-current |  | 333,163 |  |  | 257,747 |  |  | 316,265
Other liabilities |  | 56,244 |  |  | 48,034 |  |  | 47,275
Deferred income tax, net |  | 21,054 |  |  | 18,414 |  |  | 19,862
Redeemable non-controlling interests |  | 132,660 |  |  | 139,592 |  |  | 134,527
Shareholders' equity |  | 184,930 |  |  | 149,493 |  |  | 109,095
| Total liabilities and equity | $ | 1,160,277 |  | $ | 1,092,421 |  | $ | 1,037,063
Supplemental balance sheet information |  |  |  |  |  |  |  |
Total debt | $ | 335,772 |  | $ | 260,947 |  | $ | 320,043
Total debt, net of cash |  | 226,862 |  |  | 144,797 |  |  | 221,876
Net debt / pro forma adjusted EBITDA ratio |  | 1.1 |  |  | 0.8 |  |  | 1.3

Consolidated Statements of Cash Flows |  |  |  |  |  |  |
(in thousands of US dollars)
|  |  |  | Three months ended |  |  | Nine months ended
|  |  |  | September 30 |  |  | September 30
(unaudited) |  |  |  | 2016 |  |  |  |  | 2015 |  |  |  |  | 2016 |  |  |  |  | 2015 |
Cash provided by (used in) |  |  |  |  |  |  |  |  |  |  |  |
Operating activities |  |  |  |  |  |  |  |  |  |  |  |
Net earnings (loss) from continuing operations |  | $ |  | 13,461 |  |  | $ |  | 18,414 |  |  | $ |  | 41,250 |  |  | $ |  | (2,904 | )
Items not affecting cash: |  |  |  |  |  |  |  |  |  |  |  |
| Depreciation and amortization |  |  |  | 11,390 |  |  |  |  | 9,794 |  |  |  |  | 33,038 |  |  |  |  | 28,068 |
| Spin-off stock-based compensation |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 35,400 |
| Deferred income tax |  |  |  | 1,664 |  |  |  |  | 14 |  |  |  |  | 5,751 |  |  |  |  | (5,475 | )
| Other |  |  |  | 5,051 |  |  |  |  | 1,187 |  |  |  |  | 13,241 |  |  |  |  | 6,298 |
|  |  |  |  | 31,566 |  |  |  |  | 29,409 |  |  |  |  | 93,280 |  |  |  |  | 61,387 |
Net change from assets/liabilities |  |  |  |  |  |  |  |  |  |  |  |
| Accounts receivable |  |  |  | 13,877 |  |  |  |  | (2,665 | ) |  |  |  | 25,136 |  |  |  |  | 17,538 |
| Payables and accruals |  |  |  | 19,500 |  |  |  |  | 44,592 |  |  |  |  | (65,335 | ) |  |  |  | (31,989 | )
| Other |  |  |  | (415 | ) |  |  |  | (1,774 | ) |  |  |  | (4,548 | ) |  |  |  | (21,406 | )
| Contingent acquisition consideration paid |  |  |  | (591 | ) |  |  |  | (159 | ) |  |  |  | (591 | ) |  |  |  | (1,332 | )
Discontinued operations |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 29,416 |
Net cash provided by operating activities |  |  |  | 63,937 |  |  |  |  | 69,403 |  |  |  |  | 47,942 |  |  |  |  | 53,614 |
Investing activities |  |  |  |  |  |  |  |  |  |  |  |
Acquisition of businesses, net of cash acquired |  |  |  | (26,006 | ) |  |  |  | (11,626 | ) |  |  |  | (72,332 | ) |  |  |  | (28,900 | )
Purchases of fixed assets |  |  |  | (5,560 | ) |  |  |  | (4,491 | ) |  |  |  | (16,242 | ) |  |  |  | (15,793 | )
Other investing activities |  |  |  | (4,363 | ) |  |  |  | (3,778 | ) |  |  |  | (18,283 | ) |  |  |  | (7,166 | )
Discontinued operations |  |  |  | - |  |  |  |  | - |  |  |  |  | - |  |  |  |  | (10,448 | )
Net cash used in investing activities |  |  |  | (35,929 | ) |  |  |  | (19,895 | ) |  |  |  | (106,857 | ) |  |  |  | (62,307 | )
Financing activities |  |  |  |  |  |  |  |  |  |  |  |
(Decrease) increase in long-term debt, net |  |  |  | (2,730 | ) |  |  |  | (54,773 | ) |  |  |  | 83,758 |  |  |  |  | (6,039 | )
Purchases of subsidiary shares from non-controlling interests, net |  |  |  | (9,282 | ) |  |  |  | (4,317 | ) |  |  |  | (12,919 | ) |  |  |  | (5,210 | )
Dividends paid to common shareholders |  |  |  | (1,931 | ) |  |  |  | - |  |  |  |  | (3,471 | ) |  |  |  | (3,581 | )
Distributions paid to non-controlling interests |  |  |  | (3,130 | ) |  |  |  | (5,290 | ) |  |  |  | (13,389 | ) |  |  |  | (12,778 | )
Other financing activities |  |  |  | (185 | ) |  |  |  | (1,674 | ) |  |  |  | 793 |  |  |  |  | (3,003 | )
Net cash (used in) provided by financing activities |  |  |  | (17,258 | ) |  |  |  | (66,054 | ) |  |  |  | 54,772 |  |  |  |  | (30,611 | )
Effect of exchange rate changes on cash |  |  |  | 1,478 |  |  |  |  | (9,011 | ) |  |  |  | (3,097 | ) |  |  |  | (19,322 | )
Increase (decrease) in cash and cash equivalents |  |  |  | 12,228 |  |  |  |  | (25,557 | ) |  |  |  | (7,240 | ) |  |  |  | (58,626 | )
Cash and cash equivalents, beginning of period |  |  |  | 96,682 |  |  |  |  | 123,724 |  |  |  |  | 116,150 |  |  |  |  | 156,793 |
Cash and cash equivalents, end of period |  | $ |  | 108,910 |  |  | $ |  | 98,167 |  |  | $ |  | 108,910 |  |  | $ |  | 98,167 |
Cash flows excluding discontinued operations |  |  |  |  |  |  |  |  |  |  |  |
| Operating activities |  | $ |  | 63,937 |  |  | $ |  | 69,403 |  |  | $ |  | 47,942 |  |  | $ |  | 24,198 |
| Investing activities |  |  |  | (35,929 | ) |  |  |  | (19,895 | ) |  |  |  | (106,857 | ) |  |  |  | (51,859 | )

Segmented Results
(in thousands of US dollars)
|  |  |  |  |  | Asia |  |  |  |
(unaudited) | Americas |  | EMEA |  | Pacific |  | Corporate |  | Consolidated
Three months ended September 30 |  |  |  |  |  |  |  |  |  |  |  |
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Revenues | $ | 256,466 |  | $ |  | 106,601 |  |  | $ | 98,623 |  | $ |  | 362 |  |  | $ | 462,052
| Adjusted EBITDA |  | 22,556 |  |  |  | 4,482 |  |  |  | 13,164 |  |  |  | (2,557 | ) |  |  | 37,645
| Operating earnings (loss) |  | 16,307 |  |  |  | (363 | ) |  |  | 11,636 |  |  |  | (3,953 | ) |  |  | 23,627
2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Revenues | $ | 223,870 |  | $ |  | 107,647 |  |  | $ | 88,468 |  | $ |  | 293 |  |  | $ | 420,278
| Adjusted EBITDA |  | 22,802 |  |  |  | 13,216 |  |  |  | 8,683 |  |  |  | (1,658 | ) |  |  | 43,043
| Operating earnings (loss) |  | 17,850 |  |  |  | 8,538 |  |  |  | 6,826 |  |  |  | (3,404 | ) |  |  | 29,810
|  |  |  |  |  | Asia |  |  |  |
|  | Americas |  | EMEA |  | Pacific |  | Corporate |  | Consolidated
Nine months ended September 30 |  |  |  |  |  |  |  |  |  |  |  |  |
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Revenues | $ | 729,975 |  | $ |  | 322,693 |  |  | $ | 267,186 |  | $ |  | 842 |  |  | $ | 1,320,696
| Adjusted EBITDA |  | 72,527 |  |  |  | 21,007 |  |  |  | 26,934 |  |  |  | (7,846 | ) |  |  | 112,622
| Operating earnings (loss) |  | 55,847 |  |  |  | 5,495 |  |  |  | 22,697 |  |  |  | (13,921 | ) |  |  | 70,118
2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Revenues | $ | 613,364 |  | $ |  | 294,493 |  |  | $ | 257,269 |  | $ |  | 746 |  |  | $ | 1,165,872
| Adjusted EBITDA |  | 53,502 |  |  |  | 31,038 |  |  |  | 26,661 |  |  |  | (9,010 | ) |  |  | 102,191
| Operating earnings (loss) (1) |  | 39,459 |  |  |  | 18,242 |  |  |  | 21,983 |  |  |  | (64,277 | ) |  |  | 15,407

(1) Operating loss of Corporate for the nine month period ended September 30, 2015 includes $35,400 of spin-off stock-based compensation costs and $14,147 of spin-off transaction costs.

COMPANY CONTACTS:
Jay S. Hennick
Chairman & CEO
John B. Friedrichsen
CFO
(416) 960-9500