EXHIBIT 99.2
[GRAPHIC OMITTED] GRUBB & ELLIS(R) MEDIA RELEASE
Property Solutions Worldwide
FOR IMMEDIATE RELEASE CONTACT: Ian Bress, Chief Financial Officer
ian.bress@grubb-ellis.com 212.326.4784
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GRUBB & ELLIS REPORTS FISCAL YEAR 2002 RESULTS
NEW YORK, NY (Sept. XX, 2002) - Grubb & Ellis Company (NYSE: GBE), one of
the largest commercial real estate firms in the U.S., today reported a net loss
for the fiscal year ended June 30, 2002 of $15.5 million, or $1.09 per diluted
share, compared with net income of $1.4 million, or $.08 per diluted common
share, for the same period a year ago. For the fourth quarter of fiscal 2002,
the company reported a net loss of $7.9 million, or $.53 per diluted common
share, compared with a net loss of $1.6 million, or $.12 per diluted common
share, a year earlier.
Total revenue for fiscal 2002 was $313.5 million, a decrease of 24 percent
from $412.0 million generated a year earlier. For the fiscal 2002 fourth
quarter, total revenue was $77.1 million, 6 percent lower than $82.0 million in
the fiscal 2001 fourth quarter.
Earnings before interest, income taxes, depreciation and amortization
(EBITDA), before non-recurring items, was a loss of $1.7 million for fiscal
2002, compared with income of $27.9 million for fiscal 2001. For the 2002 fourth
quarter, the company's EBITDA was $219,000, compared with $3.3 million in the
fourth quarter of 2001.
"There's no question that fiscal 2002 was a difficult year for our company
and the commercial real estate services industry as a whole. We're pleased that
fourth quarter revenue, while still below last year's levels, reflects an
improving trend indicating that transaction velocity is beginning to grow.
Expense control remains a priority as we position Grubb & Ellis for the
long-term, " said Barry M. Barovick, President and Chief Executive Officer. "The
Company continues to maintain stability and sufficient capitalization to weather
a continuing downturn while remaining focused on positioning itself for
long-term success and leadership in the industry when the economic conditions
improve."
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Grubb & Ellis
Knight Frank
Global Alliance
GRUBB & ELLIS COMPANY is one of the world's leading providers of integrated real
estate services. Through its comprehensive global array of consulting,
transaction and management solutions, Grubb & Ellis has established an
innovative "continuum" of multi-level services for businesses and corporations
worldwide, including strategic planning, property and asset management services,
and transaction expertise in both corporate and investment real estate. With the
collective resources of more than 8,000 people in over 200 offices in 30
countries, including its domestic affiliates and a strategic initiative with
Knight Frank, one of the leading property consulting firms in Europe, Africa and
Asia Pacific, Grubb & Ellis provides a unique "single point of contact" approach
for clients that empowers its professionals to approach commercial real estate
issues seamlessly. For more information, visit the company's website at
www.grubb-ellis.com.
EDITOR'S NOTE: CERTAIN STATEMENTS CONTAINED IN THIS PRESS RELEASE, WHICH ARE NOT
HISTORICAL FACTS, ARE FORWARD-LOOKING STATEMENTS, AS THE TERM IS DEFINED IN THE
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. SUCH FORWARD-LOOKING
STATEMENTS ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL
RESULTS TO DIFFER MATERIALLY FROM THOSE CURRENTLY ANTICIPATED DUE TO A NUMBER OF
FACTORS, WHICH INCLUDE, BUT ARE NOT LIMITED TO: ISSUES AFFECTING REAL ESTATE ON
BOTH A NATIONAL AND LOCAL BASIS, GENERAL ECONOMIC CONDITIONS, THE ABILITY OF THE
COMPANY TO EFFECTIVELY RESPOND TO CHANGING MARKET CONDITIONS, AND OTHER FACTORS
THAT ARE DISCUSSED IN THE COMPANY'S ANNUAL REPORT ON 10-K FOR THE FISCAL YEAR
ENDED JUNE 30, 2001 AND THE COMPANY'S QUARTERLY REPORTS ON FORM 10-Q FOR THE
THREE (3) MONTH PERIODS ENDED SEPTEMBER 30, 2001, DECEMBER 31, 2001 AND MARCH
31, 2002, ALL OF WHICH HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION.
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--TABLES FOLLOW --
GRUBB & ELLIS COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT SHARE DATA)
(UNAUDITED)
Three Months Ended Years Ended
June 30, June 30,
2002 2001 2002 2001
---- ---- ---- ----
Revenue
Transaction services fees $ 64,527 $ 68,924 $ 262,077 $ 358,462
Management services fees 12,618 13,041 51,399 53,500
--------- --------- --------- ---------
Total revenue 77,145 81,965 313,476 411,962
--------- --------- --------- ---------
Costs and expenses
Services commissions 36,640 38,531 151,900 216,646
Salaries, wages and benefits 23,185 23,459 97,497 98,847
Selling, general and administrative 17,101 16,643 65,828 68,550
Depreciation and amortization 2,428 2,940 10,706 11,635
Impairment and other non-recurring expenses 1,072 2,366 1,749 6,222
--------- --------- --------- ---------
Total costs and expenses 80,426 83,939 327,680 401,900
--------- --------- --------- ---------
Operating income (loss) (3,281) (1,974) (14,204) 10,062
Other income and expenses
Interest income 81 147 401 1,640
Interest expense (918) (730) (2,861) (1,422)
--------- --------- --------- ---------
Income (loss) before income taxes (4,118) (2,557) (16,664) 10,280
Income tax benefit (provision) 1,413 975 6,401 (5,372)
Deferred tax asset valuation charge (5,214) - (5,214) -
--------- --------- --------- ---------
Income (loss) before extraordinary item and cumulative effect (7,919) (1,582) (15,477) 4,908
Extraordinary loss on extinguishment of debt, net of tax - - - (406)
Cumulative effect of accounting change - - - (3,133)
========= ========= ========= =========
Net income (loss) $ (7,919) $ (1,582) $ (15,477) $ 1,369
========= ========= ========= =========
Earnings per share - diluted $ (0.53) $ (0.12) $ (1.09) $ 0.08
========= ========= ========= =========
EBITDA(1) $ 219 $ 3,332 $ (1,749) $ 27,919
========= ========= ========= =========
Weighted average shares outstanding (diluted) 15,032 13,315 14,148 17,975
========= ========= ========= =========
1. Earnings before interest, income taxes, depreciation and amortization,
adjusted to exclude non-recurring items.
GRUBB & ELLIS COMPANY FINANCIAL STATEMENTS ARE REPORTED FOR FISCAL YEARS ENDED
JUNE 30, 2002 AND JUNE 30, 2001.
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Grubb & Ellis
Knight Frank
Global Alliance
GRUBB & ELLIS COMPANY
SELECTED CONDENSED CONSOLIDATED BALANCE SHEET DATA
(IN THOUSANDS)
(UNAUDITED)
June 30, June 30,
2002 2001
--------- ---------
ASSETS
Cash and cash equivalents $ 14,085 $ 7,248
Total current assets $ 41,706 $ 38,592
Total assets $ 90,377 $ 92,426
LIABILITIES
Total debt $ 42,410 $ 37,000
Total current liabilities $ 37,455 $ 37,376
Total liabilities $ 84,511 $ 76,110
Total stockholders' equity $ 5,866 $ 16,316
Total liabilities and stockholders' equity $ 90,377 $ 92,426