EX-99.1 2 exh_991.htm PRESS RELEASE

EXHIBIT 99.1

Colliers International Reports Strong Third Quarter Results

Continued revenue and earnings growth, with significant contribution from new Investment Management platform

Operating highlights:

| Three months ended |  | Nine months ended
| September 30 |  | September 30
(in millions of US$, except EPS) | 2018 |  | 2017 |  | 2018 |  | 2017
Revenues | $ | 715.7 |  | $ | 618.8 |  | $ | 1,935.5 |  | $ | 1,671.3
Adjusted EBITDA (note 1) |  | 72.7 |  |  | 55.3 |  |  | 178.2 |  |  | 146.8
Adjusted EPS (note 2) |  | 0.92 |  |  | 0.66 |  |  | 2.32 |  |  | 1.79
GAAP operating earnings |  | 42.0 |  |  | 34.5 |  |  | 103.3 |  |  | 88.5
GAAP EPS |  | 0.41 |  |  | 0.16 |  |  | 1.13 |  |  | 0.48

TORONTO, Oct. 30, 2018 (GLOBE NEWSWIRE) -- Colliers International Group Inc. (NASDAQ: CIGI) (TSX: CIGI) today reported operating and financial results for its third quarter ended September 30, 2018. All amounts are in US dollars.

Revenues for the third quarter were $715.7 million, a 16% increase (17% in local currency) relative to the same quarter in the prior year, adjusted EBITDA (note 1) was $72.7 million, up 31% (33% in local currency) and adjusted EPS (note 2) was $0.92, a 39% increase versus the prior year quarter. Third quarter adjusted EPS would have been approximately $0.01 higher excluding foreign exchange impacts. GAAP operating earnings were $42.0 million, relative to $34.5 million in the prior year period. GAAP diluted net earnings per common share was $0.41 in the quarter, versus $0.16 per share for the same quarter a year ago. Third quarter GAAP EPS would have been approximately $0.01 higher excluding changes in foreign exchange rates.

For the nine months ended September 30, 2018, revenues were $1.94 billion, a 16% increase (14% in local currency) relative to the comparable prior year period, adjusted EBITDA was $178.2 million, up 21% (20% in local currency) and adjusted EPS was $2.32, a 30% increase versus the prior year period. Year-to-date adjusted EPS would have been approximately $0.04 lower excluding foreign exchange impacts. GAAP operating earnings were $103.3 million, relative to $88.5 million in the prior year period. GAAP diluted net earnings per common share for the nine month period was $1.13, compared to $0.48 per share in the prior year period. Year-to-date GAAP EPS would have been approximately $0.04 lower excluding changes in foreign exchange rates.

“We generated strong overall revenue and earnings growth during the quarter, with a significant contribution from our new Investment Management platform. Given our performance through the first nine months of the year, current business pipelines and expectations of continuing stable to growing market conditions generally, we expect a solid fourth quarter and finish to the year,” said Jay S. Hennick, Chairman and CEO of Colliers International. “At the beginning of the quarter, we completed our strategic investment in Harrison Street Real Estate Capital, one of the largest real estate investment firms dedicated to the education, healthcare and storage sectors globally. Harrison Street, together with our existing European investment management business, will form the core of our new Investment Management platform going forward with $25.9 billion in assets under management as of September 30, 2018. Since the beginning of the quarter, we also completed strategic acquisitions strengthening our services businesses in Denmark, Canada, Germany and Australia,” he concluded.

About Colliers International Group Inc.
Colliers International Group Inc. (NASDAQ: CIGI) (TSX: CIGI) is a top tier global real estate services and investment management company operating in 69 countries with a workforce of more than 13,000 professionals. Colliers is the fastest-growing publicly listed global real estate services and investment management company, with 2017 corporate revenues of $2.3 billion ($2.7 billion including affiliates). With an enterprising culture and significant employee ownership and control, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide, and through its investment management services platform, has more than $25 billion of assets under management from the world’s most respected institutional real estate investors.

Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice to accelerate the success of its clients. Colliers has been ranked among the top 100 global outsourcing firms by the International Association of Outsourcing Professionals for 13 consecutive years, more than any other real estate services firm. Colliers is ranked the number one property manager in the world by Commercial Property Executive for two years in a row.

Colliers is led by an experienced leadership team with significant equity ownership and a proven record of delivering more than 20% annualized returns for shareholders, over more than 20 years.

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

Consolidated Revenues

|  | Three months ended |  |  |  | Nine months ended |  |
(in thousands of US$) |  | September 30 | Growth | Growth |  | September 30 | Growth | Growth
(LC = local currency) |  | 2018 |  | 2017 | in US$ % | in LC % |  | 2018 |  | 2017 | in US$ % | in LC %
Outsourcing & Advisory |  | $ | 258,672 |  | $ | 230,727 | 12 | % | 15 | % |  | $ | 755,883 |  | $ | 658,536 | 15 | % | 13 | %
Lease Brokerage |  |  | 229,294 |  |  | 197,035 | 16 | % | 17 | % |  |  | 618,692 |  |  | 522,190 | 18 | % | 17 | %
Sales Brokerage |  |  | 195,926 |  |  | 188,203 | 4 | % | 6 | % |  |  | 523,871 |  |  | 482,128 | 9 | % | 7 | %
Investment Management |  |  | 31,829 |  |  | 2,833 | NM | NM |  |  | 37,098 |  |  | 8,440 | NM | NM
Total revenues |  | $ | 715,721 |  | $ | 618,798 | 16 | % | 17 | % |  | $ | 1,935,544 |  | $ | 1,671,294 | 16 | % | 14 | %

Consolidated revenues for the third quarter grew 17% on a local currency basis, with contributions from each service line. Consolidated internal revenue growth in local currencies was 6% (note 3) led by Lease Brokerage.

For the nine months ended September 30, 2018, consolidated revenues grew 14% on a local currency basis. Year-to-date consolidated internal revenue growth in local currencies was 6% led by Lease Brokerage.

Segmented Quarterly Results
The Americas region’s revenues totalled $404.6 million for the third quarter compared to $359.4 million in the prior year quarter, up 13% (14% on a local currency basis). Local currency revenue growth was comprised of 9% internal growth and 5% from recent acquisitions. Internal growth for the quarter was split evenly among service lines. Adjusted EBITDA was $33.3 million, versus $30.8 million in the prior year quarter, up 8%. GAAP operating earnings were $24.4 million, versus $21.2 million in the prior year period.

EMEA region revenues totalled $146.3 million for the third quarter compared to $128.1 million in the prior year quarter, up 14% (15% on a local currency basis). Local currency revenue growth was comprised of 13% growth from recent acquisitions and 2% internal growth. Internal revenue growth was led by an increase in Lease Brokerage largely offset by a decline in Sales Brokerage relative to a strong comparative in the prior year period. Adjusted EBITDA was $17.3 million, versus $11.1 million in the prior year quarter, up 56%. GAAP operating earnings were $9.4 million, versus $6.1 million in the prior year quarter.

Asia Pacific region revenues totalled $132.5 million for the third quarter compared to $128.1 million in the prior year quarter, up 3% (8% on a local currency basis). Local currency revenue growth was comprised of 5% internal growth and 3% growth from recent acquisitions. Internal growth was led by Lease Brokerage and Outsourcing & Advisory. Adjusted EBITDA was $17.8 million, versus $15.6 million in the prior year quarter, up 14%. GAAP operating earnings were $16.2 million, versus $14.1 million in the prior year period.

The new Investment Management segment is comprised of Harrison Street which was acquired in July 2018, and the Company’s existing European investment management business which was previously reported within the EMEA segment. Investment Management revenues for the third quarter were $31.8 million and Adjusted EBITDA was $9.6 million. Operating earnings were $2.4 million and were impacted by a significant increase in acquisition-related intangible asset amortization. Assets under management increased to $25.9 billion as of September 30, 2018, up 9% sequentially from $23.7 billion at the beginning of the third quarter when the Company acquired Harrison Street.

Global corporate costs as reported in adjusted EBITDA were $5.3 million in the third quarter, up from $2.2 million in the prior year period, primarily on account of higher insurance costs as well as performance-based incentive compensation accruals. The corporate GAAP operating loss for the quarter was $10.4 million, relative to $6.9 million in the prior period.

Conference Call
Colliers will be holding a conference call on Tuesday, October 30, 2018 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 corporate.colliers.com in the Events 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 business spending; commercial real estate property values, vacancy rates and general conditions of financial liquidity for real estate transactions; the effects of changes in foreign exchange rates in relation to the US dollar on Canadian dollar, Euro, Australian dollar and UK pound sterling denominated revenues and expenses; competition in markets served by the Company; labor shortages or increases in commission, wage and benefit costs; disruptions or security failures in information technology systems; and political conditions or events, including elections, referenda, changes to international trade and immigration policies, and any outbreak or escalation of terrorism or hostilities.

Additional factors and explanatory information are identified in the Company’s Annual Information Form for the year ended December 31, 2017 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 to adjusted EBITDA:

Adjusted EBITDA is defined as net earnings, adjusted to exclude: (i) income tax; (ii) other expense (income); (iii) interest expense; (iv) depreciation and amortization; (v) acquisition-related items; (vi) restructuring costs and (vii) 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 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 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 |  | Nine months ended
(in thousands of US$) | September 30 |  | September 30
| 2018 |  | 2017 |  | 2018 |  | 2017
Net earnings | $ | 25,384 |  |  | $ | 20,362 |  |  | $ | 62,727 |  |  | $ | 53,119 |
Income tax |  | 10,257 |  |  |  | 10,941 |  |  |  | 27,832 |  |  |  | 28,068 |
Other income, net |  | (581 | ) |  |  | (332 | ) |  |  | (1,041 | ) |  |  | (2,368 | )
Interest expense, net |  | 6,896 |  |  |  | 3,487 |  |  |  | 13,753 |  |  |  | 9,708 |
Operating earnings |  | 41,956 |  |  |  | 34,458 |  |  |  | 103,271 |  |  |  | 88,527 |
Depreciation and amortization |  | 23,161 |  |  |  | 12,976 |  |  |  | 55,303 |  |  |  | 39,384 |
Acquisition-related items |  | 6,271 |  |  |  | 6,149 |  |  |  | 14,265 |  |  |  | 13,666 |
Restructuring costs |  | - |  |  |  | 760 |  |  |  | 416 |  |  |  | 1,803 |
Stock-based compensation expense |  | 1,277 |  |  |  | 939 |  |  |  | 4,978 |  |  |  | 3,411 |
Adjusted EBITDA | $ | 72,665 |  |  | $ | 55,282 |  |  | $ | 178,233 |  |  | $ | 146,791 |

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

Adjusted earnings per share is defined as diluted net earnings per common share, 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) restructuring costs and (v) 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, 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 earnings per share appears below.

| Three months ended |  | Nine months ended
(in thousands of US$) | September 30 |  | September 30
| 2018 |  | 2017 |  | 2018 |  | 2017
Net earnings | $ | 25,384 |  |  | $ | 20,362 |  |  | $ | 62,727 |  |  | $ | 53,119 |
Non-controlling interest share of earnings |  | (4,073 | ) |  |  | (5,462 | ) |  |  | (8,290 | ) |  |  | (12,755 | )
Amortization of intangible assets |  | 15,255 |  |  |  | 6,183 |  |  |  | 32,624 |  |  |  | 20,148 |
Acquisition-related items |  | 6,271 |  |  |  | 6,149 |  |  |  | 14,265 |  |  |  | 13,666 |
Restructuring costs |  | - |  |  |  | 760 |  |  |  | 416 |  |  |  | 1,803 |
Stock-based compensation expense |  | 1,277 |  |  |  | 939 |  |  |  | 4,978 |  |  |  | 3,411 |
Income tax on adjustments |  | (5,440 | ) |  |  | (2,057 | ) |  |  | (10,413 | ) |  |  | (6,523 | )
Non-controlling interest on adjustments |  | (1,929 | ) |  |  | (1,048 | ) |  |  | (3,979 | ) |  |  | (2,777 | )
Adjusted net earnings | $ | 36,745 |  |  | $ | 25,826 |  |  | $ | 92,328 |  |  | $ | 70,092 |
| Three months ended |  | Nine months ended
(in US$) | September 30 |  | September 30
| 2018 |  | 2017 |  | 2018 |  | 2017
Diluted net earnings per common share | $ | 0.41 |  |  | $ | 0.16 |  |  | $ | 1.13 |  |  | $ | 0.48 |
Non-controlling interest redemption increment |  | 0.13 |  |  |  | 0.22 |  |  |  | 0.24 |  |  |  | 0.55 |
Amortization of intangible assets, net of tax |  | 0.23 |  |  |  | 0.10 |  |  |  | 0.52 |  |  |  | 0.32 |
Acquisition-related items |  | 0.12 |  |  |  | 0.14 |  |  |  | 0.30 |  |  |  | 0.31 |
Restructuring costs, net of tax |  | - |  |  |  | 0.02 |  |  |  | 0.01 |  |  |  | 0.04 |
Stock-based compensation expense, net of tax |  | 0.03 |  |  |  | 0.02 |  |  |  | 0.12 |  |  |  | 0.09 |
Adjusted earnings per share | $ | 0.92 |  |  | $ | 0.66 |  |  | $ | 2.32 |  |  | $ | 1.79 |

3. Local currency revenue growth rate and internal revenue growth

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
(in thousands of US dollars, except per share amounts)
|  |  |  | Three months |  |  | Nine months
|  |  |  | ended September 30 |  |  | ended September 30
(unaudited) | 2018 |  | 2017 |  | 2018 |  | 2017
Revenues | $ | 715,721 |  |  | $ | 618,798 |  |  | $ | 1,935,544 |  |  | $ | 1,671,294 |
Cost of revenues |  | 472,079 |  |  |  | 413,965 |  |  |  | 1,265,104 |  |  |  | 1,088,992 |
Selling, general and administrative expenses |  | 172,254 |  |  |  | 151,250 |  |  |  | 497,601 |  |  |  | 440,725 |
Depreciation |  | 7,906 |  |  |  | 6,793 |  |  |  | 22,679 |  |  |  | 19,236 |
Amortization of intangible assets |  | 15,255 |  |  |  | 6,183 |  |  |  | 32,624 |  |  |  | 20,148 |
Acquisition-related items (1) |  | 6,271 |  |  |  | 6,149 |  |  |  | 14,265 |  |  |  | 13,666 |
Operating earnings |  | 41,956 |  |  |  | 34,458 |  |  |  | 103,271 |  |  |  | 88,527 |
Interest expense, net |  | 6,896 |  |  |  | 3,487 |  |  |  | 13,753 |  |  |  | 9,708 |
Other income |  | (581 | ) |  |  | (332 | ) |  |  | (1,041 | ) |  |  | (2,368 | )
Earnings before income tax |  | 35,641 |  |  |  | 31,303 |  |  |  | 90,559 |  |  |  | 81,187 |
Income tax expense |  | 10,257 |  |  |  | 10,941 |  |  |  | 27,832 |  |  |  | 28,068 |
Net earnings |  | 25,384 |  |  |  | 20,362 |  |  |  | 62,727 |  |  |  | 53,119 |
Non-controlling interest share of earnings |  | 4,073 |  |  |  | 5,462 |  |  |  | 8,290 |  |  |  | 12,755 |
Non-controlling interest redemption increment |  | 5,125 |  |  |  | 8,631 |  |  |  | 9,439 |  |  |  | 21,381 |
Net earnings attributable to Company | $ | 16,186 |  |  | $ | 6,269 |  |  | $ | 44,998 |  |  | $ | 18,983 |
Net earnings per common share |  |  |  |  |  |  |  |  |  |  |
| Basic | $ | 0.41 |  |  | $ | 0.16 |  |  | $ | 1.15 |  |  | $ | 0.49 |
| Diluted | $ | 0.41 |  |  | $ | 0.16 |  |  | $ | 1.13 |  |  | $ | 0.48 |
Adjusted earnings per share (2) | $ | 0.92 |  |  | $ | 0.66 |  |  | $ | 2.32 |  |  | $ | 1.79 |
Weighted average common shares (thousands) |  |  |  |  |  |  |  |  |  |  |
|  | Basic |  | 39,198 |  |  |  | 38,860 |  |  |  | 39,139 |  |  |  | 38,804 |
|  | Diluted |  | 39,934 |  |  |  | 39,349 |  |  |  | 39,821 |  |  |  | 39,264 |

Notes to Condensed Consolidated Statements of Earnings
(1) Acquisition-related items include transaction costs, contingent acquisition consideration fair value adjustments, and contingent acquisition consideration-related compensation expense.
(2) See definition and reconciliation above.
(3) New US GAAP revenue guidance was adopted effective January 1, 2018 which had the impact of (i) increasing the proportion of reimbursable expenses related to property management activities accounted for as revenue on a gross basis, with no impact on earnings and (ii) accelerating the recognition of revenue related to certain Lease Brokerage transactions, with an accompanying immaterial increase to earnings. The Company also restated its results for the three- and nine-month periods ended September 30, 2017 to reflect the impact of the adoption.

Condensed Consolidated Balance Sheets |  |  |  |  |  |  |  |
(in thousands of US dollars) |  |  |
(unaudited) | September 30, 2018 |  | December 31, 2017 |  | September 30, 2017
Assets |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 114,737 |  | $ | 108,523 |  | $ | 109,822
Accounts receivable and contract assets |  | 495,255 |  |  | 487,279 |  |  | 423,036
Prepaids and other assets |  | 80,710 |  |  | 68,556 |  |  | 70,676
| Current assets |  | 690,702 |  |  | 664,358 |  |  | 603,534
Other non-current assets |  | 86,616 |  |  | 72,736 |  |  | 77,548
Fixed assets |  | 89,234 |  |  | 83,899 |  |  | 80,538
Deferred income tax |  | 38,631 |  |  | 48,401 |  |  | 60,350
Goodwill and intangible assets |  | 1,398,056 |  |  | 638,166 |  |  | 636,339
| Total assets | $ | 2,303,239 |  | $ | 1,507,560 |  | $ | 1,458,309
Liabilities and shareholders' equity |  |  |  |  |  |  |  |
Accounts payable and accrued liabilities | $ | 584,331 |  | $ | 646,722 |  | $ | 523,096
Other current liabilities |  | 66,597 |  |  | 75,494 |  |  | 70,728
Long-term debt - current |  | 2,415 |  |  | 2,426 |  |  | 2,245
| Current liabilities |  | 653,343 |  |  | 724,642 |  |  | 596,069
Long-term debt - non-current |  | 818,113 |  |  | 247,467 |  |  | 369,651
Other liabilities |  | 125,211 |  |  | 67,904 |  |  | 69,724
Deferred income tax |  | 28,042 |  |  | 19,044 |  |  | 16,948
Redeemable non-controlling interests |  | 334,910 |  |  | 145,489 |  |  | 140,210
Shareholders' equity |  | 343,620 |  |  | 303,014 |  |  | 265,707
| Total liabilities and equity | $ | 2,303,239 |  | $ | 1,507,560 |  | $ | 1,458,309
Supplemental balance sheet information |  |  |  |  |  |  |  |
Total debt | $ | 820,528 |  | $ | 249,893 |  | $ | 371,896
Total debt, net of cash |  | 705,791 |  |  | 141,370 |  |  | 262,074
Net debt / pro forma adjusted EBITDA ratio |  | 2.2 |  |  | 0.6 |  |  | 1.1

Consolidated Statements of Cash Flows |  |  |  |  |  |  |
(in thousands of US dollars)
|  |  | Three months ended |  |  | Nine months ended
|  |  | September 30 |  |  | September 30
(unaudited) | 2018 |  | 2017 |  | 2018 |  | 2017
Cash provided by (used in) |  |  |  |  |  |  |  |  |  |  |
Operating activities |  |  |  |  |  |  |  |  |  |  |
Net earnings | $ | 25,384 |  |  | $ | 20,362 |  |  | $ | 62,727 |  |  | $ | 53,119 |
Items not affecting cash: |  |  |  |  |  |  |  |  |  |  |
| Depreciation and amortization |  | 23,161 |  |  |  | 12,976 |  |  |  | 55,303 |  |  |  | 39,384 |
| Deferred income tax |  | 1,406 |  |  |  | 1,762 |  |  |  | 2,805 |  |  |  | 6,012 |
| Other |  | 10,563 |  |  |  | 10,559 |  |  |  | 27,106 |  |  |  | 26,603 |
|  |  | 60,514 |  |  |  | 45,659 |  |  |  | 147,941 |  |  |  | 125,118 |
Net change from assets/liabilities |  |  |  |  |  |  |  |  |  |  |
| Accounts receivable and contract assets |  | (31,538 | ) |  |  | (10,105 | ) |  |  | 16,793 |  |  |  | (4,584) |
| Prepaids and other assets |  | (2,100 | ) |  |  | (69 | ) |  |  | (7,401 | ) |  |  | (5,514 | )
| Payables and accruals |  | 65,071 |  |  |  | 51,885 |  |  |  | (87,518 | ) |  |  | (55,218 | )
| Other |  | 7,759 |  |  |  | 1,693 |  |  |  | 2,921 |  |  |  | 9,285 |
| Contingent acquisition consideration paid |  | (1,509 | ) |  |  | (812 | ) |  |  | (4,365 | ) |  |  | (1,113 | )
Net cash provided by operating activities |  | 98,197 |  |  |  | 88,251 |  |  |  | 68,371 |  |  |  | 67,974 |
Investing activities |  |  |  |  |  |  |  |  |  |  |
Acquisition of businesses, net of cash acquired |  | (476,108 | ) |  |  | (4,162 | ) |  |  | (574,688 | ) |  |  | (55,165 | )
Disposition of business, net of cash disposed |  | 17,287 |  |  |  | - |  |  |  | 17,287 |  |  |  | - |
Purchases of fixed assets |  | (7,571 | ) |  |  | (8,378 | ) |  |  | (21,561 | ) |  |  | (28,879 | )
Other investing activities |  | (3,913 | ) |  |  | (17,769 | ) |  |  | (21,873 | ) |  |  | (34,790 | )
Net cash used in investing activities |  | (470,305 | ) |  |  | (30,309 | ) |  |  | (600,835 | ) |  |  | (118,834 | )
Financing activities |  |  |  |  |  |  |  |  |  |  |
Increase in long-term debt, net |  | 401,907 |  |  |  | (55,418 | ) |  |  | 574,268 |  |  |  | 101,936 |
Purchases of non-controlling interests, net |  | - |  |  |  | (5,279 | ) |  |  | (73 | ) |  |  | (35,156 | )
Dividends paid to common shareholders |  | (1,959 | ) |  |  | (1,942 | ) |  |  | (3,906 | ) |  |  | (3,875 | )
Distributions paid to non-controlling interests |  | (3,544 | ) |  |  | (6,514 | ) |  |  | (16,147 | ) |  |  | (17,506 | )
Other financing activities |  | (8,805 | ) |  |  | (446 | ) |  |  | (11,494 | ) |  |  | (846 | )
Net cash provided by (used in) financing activities |  | 387,599 |  |  |  | (69,599 | ) |  |  | 542,648 |  |  |  | 44,553 |
Effect of exchange rate changes on cash |  | (5,000 | ) |  |  | (1,503 | ) |  |  | (3,970 | ) |  |  | 2,981 |
Increase (decrease) in cash and cash equivalents |  | 10,491 |  |  |  | (13,160 | ) |  |  | 6,214 |  |  |  | (3,326 | )
Cash and cash equivalents, beginning of period |  | 104,246 |  |  |  | 122,982 |  |  |  | 108,523 |  |  |  | 113,148 |
Cash and cash equivalents, end of period | $ | 114,737 |  |  | $ | 109,822 |  |  | $ | 114,737 |  |  | $ | 109,822 |

Segmented Results
(in thousands of US dollars)
|  |  |  |  |  | Asia |  | Investment |  |  |  |
(unaudited) | Americas |  | EMEA |  | Pacific |  | Management |  | Corporate |  | Consolidated
Three months ended September 30 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Revenues | $ | 404,607 |  | $ | 146,339 |  | $ | 132,518 |  | $ | 31,829 |  |  | $ | 428 |  |  | $ | 715,721
| Adjusted EBITDA |  | 33,279 |  |  | 17,325 |  |  | 17,805 |  |  | 9,580 |  |  |  | (5,324 | ) |  |  | 72,665
| Operating earnings |  | 24,396 |  |  | 9,364 |  |  | 16,201 |  |  | 2,422 |  |  |  | (10,427 | ) |  |  | 41,956
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Revenues | $ | 359,383 |  | $ | 128,113 |  | $ | 128,052 |  | $ | 2,833 |  |  | $ | 417 |  |  | $ | 618,798
| Adjusted EBITDA |  | 30,813 |  |  | 11,095 |  |  | 15,607 |  |  | (17 | ) |  |  | (2,216 | ) |  |  | 55,282
| Operating earnings |  | 21,180 |  |  | 6,146 |  |  | 14,101 |  |  | (33 | ) |  |  | (6,936 | ) |  |  | 34,458
|  |  |  |  |  | Asia |  | Investment |  |  |  |
|  | Americas |  | EMEA |  | Pacific |  | Management |  | Corporate |  | Consolidated
Nine months ended September 30 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Revenues | $ | 1,121,716 |  | $ | 406,352 |  | $ | 369,149 |  | $ | 37,098 |  |  | $ | 1,229 |  |  | $ | 1,935,544
| Adjusted EBITDA |  | 95,911 |  |  | 39,533 |  |  | 44,388 |  |  | 8,399 |  |  |  | (9,998 | ) |  |  | 178,233
| Operating earnings |  | 71,203 |  |  | 14,945 |  |  | 39,046 |  |  | 1,220 |  |  |  | (23,143 | ) |  |  | 103,271
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Revenues | $ | 989,682 |  | $ | 333,851 |  | $ | 337,921 |  | $ | 8,442 |  |  | $ | 1,398 |  |  | $ | 1,671,294
| Adjusted EBITDA |  | 86,163 |  |  | 31,598 |  |  | 35,188 |  |  | 652 |  |  |  | (6,810 | ) |  |  | 146,791
| Operating earnings |  | 56,738 |  |  | 16,429 |  |  | 30,775 |  |  | 518 |  |  |  | (15,933 | ) |  |  | 88,527

Note to Segmented Results
The Investment Management segment includes Harrison Street which was acquired in July 2018, as well as the Company’s existing European investment management business which was previously reported within the EMEA segment.

COMPANY CONTACTS:

Jay S. Hennick
Chairman & CEO
John B. Friedrichsen
CFO

(416) 960-9500