CIGI - Earnings call transcript Q2 2021 | Colliers International Group Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Hello, and welcome to Colliers International Second Quarter 2021 Investor Conference Call. Today's call is being recorded. Legal counsel requires us to advise that the discussion scheduled to take place today may contain forward-looking statements that involve known and unknown risks and uncertainties. Actual results may be materially different from any future results, performance or achievements contemplated in the forward-looking statements.

Additional information concerning factors that could cause actual results to materially differ for those in the forward-looking statements is contained in the company's annual information form as filed with the Canadian Securities Administrators and the company's annual report on Form 40-F as filed with the U.S. Commission. Exchange and Securities

over today's ahead, And being opening at would Jay the introductions, reminder, Chief Chairman August Officer, Executive remarks Today X, I Mr. call turn to XXXX. this Please like the call a Global recorded. and go is Hennick. is and to sir. As time, for

Jay Hennick

of with you, Good morning, Chairman for today conference quarter second Jay Mayer, operator. Officer. and Hennick, us Chief and Thank call. Chief and the is Christian Officer Executive this me thanks for company, I'm Financial joining

this As today's is accompany available our also Relations is website. always, the of to there call. call is being webcast section deck available in and A slide presentation Investor

strong all momentum As lines. across robust know, you today, with Colliers service earlier reported results second quarter

were capital both versus mostly while also results to leasing quarter, capital materially the XXXX year, when XXXX leasing in markets slightly recovered, from period levels. although and markets pre-pandemic. comparing up and the Revenues were the the still prior below the materially During up same

and earlier across business But for with strong future. advisory and versus Design $X posted Colliers and growth and than internal Investment participants. [Technical results the Colliers lines. Mortgage apologize all reported as delivered raising growth the robust excellent service year-over-year mentioned, performance Colliers cutoff as lines quarter assets the outsourcing prior total of & management to Difficulty] quarter, we continue I've momentum to these $XX service under second than accelerate billion. management bringing for already I today, And year. fundraising high-teens had the strong Management billion lines more more Engineering another investment record-breaking Our both

XXXX And the compare below pre-pandemic, materially revenues although leasing materially while versus markets this up when the slightly in mostly results year from XXXX, quarter, were to the the prior both capital markets levels. still capital also was period same and were leasing we which During those up recovered, year.

management service than essential our raising bringing full nicely, management the versus I so Investment year our billion internal advisory lines that was order, growth of both to Design was by Based more markets future. excellent posted the are to capital are growth year. as under to strong raising and and had continue service services case the Our accelerate delivered on for for really assets we more were see investment by our lines strong and to the year-over-year again clients they prior financial $X $XX we we everywhere fundraising results. these results We total so obviously Engineering services, these leasing outsourcing and Management Colliers glad performance billion. Colliers & and pandemic should date, affected record-breaking as needed than business. high-teens remember recover Mortgage many our others. another And although do

So ultimately, we are them would as expected now. seeing have to we recover

the recovery in hope Let's continues. leasing, especially

more is we quarter keep additional providing from of prospects, than you'll debt series respected capital, is to $X overall our low-cost, after global placement Colliers private a bringing notes long-term growth the The announced Finally, excellent senior line of as new Christian, us highly company end, getting liquidity billion. bottom with and a Colliers stronger. with hear

shareholders to years diversified value XX to of exceptional record to more and by are continue recurring is our from about with and years model, for asset beat. significant course, enterprising create ownership. balanced culture we're by coming of EBITDA stable, most, of highly business by service unique Colliers by of track XX% long-duration many fundamentals These positioned very contracts. With hard revenue, diversified come. client, and, than XX% more inside and than and proven We revenues for resilient class geography, to our are and well our

for Christian to over for things we'll turn questions. and some up me then Christian? comments, let things open Now

Christian Mayer

Thank you, Jay.

announced slides that in Relations Please on the call All the are flow earlier, results. the consists are as of measures referenced accompany financial press comments quarter defined expressed issued in this the follow Investor non-GAAP growth this robust call. reported section today. the note second of of on posted My revenue currency. Colliers As colliers.com to local release our

revenue pre-pandemic within X% quarter impacted XXXX, year. compared for reported EBITDA Compared materially year's growth up revenues XX.X% $XXX and margins the quarter. million levels QX in The remainder the quarter. were XX% Second contribution XX% of prior and leasing acquisitions than to prior XXXX consolidated levels. growth markets were were came XX% markets completed in prior more relative year was internally, the drove X past million, XXXX the while the $XX $XXX of with the of of ago, peak levels, year double pandemic up capital million, to XX.X% the up to our Capital to leasing internal from versus positive rate year. the recovered adjusted

the from of and capital favorable benefited in margin cost of active the revenues, and impact Our acquisitions. as markets leasing of pandemic mentioned, management operating the rebound light

year year industrial Americas savings implemented EBITDA $X from to last driven higher revenues measures with well higher in activity. second notably started Adjusted revenues Second $XX industrial activity measures relative acquisitions operating line, were on and also Capital multifamily last up reduced up as from stronger were markets impact region the internal reported the as and sales prior X has origination up year, XX%, than XXX%, year by revenues revenues, the Adjusted implemented and versus debt million XX%, were million Leasing costs up and million, region increases across period. acquisitions levels. capital the up revenues pandemic. of revenue well million $XXX XX% markets. up, leverage more growth. revenues operating pandemic. leasing cost were pick the million, pre-pandemic from driven the by revenues, year ago, region, higher-margin quarter Advisory below & EBITDA prior to service were Office triple Outsourcing the EMEA's $XX due transaction activity $XX XX% $XXX with during increase was but most in each significant strong largely due recent million, revenues for was period. to leasing strong over from the to remains in quarter

led Second to with the $XX lockdowns active growth variant during Pacific was further Zealand. COVID-XX quarter management last increase compared a certain quarter. all EBITDA revenues and year, the were Asia Certain Pacific with New year experiencing $XXX to which XX% the in up the million, prior robust to Australia are in pandemic. leverage million Adjusted cost operating lines $XX to Asia during million period, parts reporting surge of and relative service attributable cases, particularly

half the only fees for $XX there We are impact was mindful and recurring this revenues reported could were period. no as of prior have in on Management up Investment XXXX. of the carried either management period XX% interest reflected versus million, activity second year the

in cash year arrangement of $XX generated million, the first $XX including $XX X positively Capital significant XX% million, million under half Assets quarter from in of following first nonrecurring for Adjusted the a flow component and management incentive were Cash $XX was expansions $XX relative impacted XXXX to several quarter a on earnings of million, $XXX million, flow of the quarter. for year markets, year increase the of another the cash working cash first and was reduction deferred from the at the in $XX the during by quarter was the X year record EBITDA prior fundraising we the half for up from were first to relocations billion XXXX. markets reflected record in for pandemic. investments certain in where million of and period. the reflected primarily facilities long-term prior in Operating end, settlement and adjusted months expenditures the compensation. usage, usage ago, related results higher but achieved up was capital accrued

For the to be million, million of $XX XXXX, CapEx X/X we full of leasehold year to about improvements. range CapEx in this landlord-funded and $XX will be the expect

capital to our debt Turning structure.

recently X.Xx XX, senior over billion net operations. future decrease and issuance, June at to ongoing EBITDA forma At of a to our of X.Xx Our we quarter and had fund pro to relative $X for acquisitions announced debt available was liquidity year-end. forma end pro note adjusted

sheet position leverage, balance strong low to extending maturities low debt is latter and in with a XXXX. very liquidity borrowing Our rates, ample

extremely well many business for make in are our years to investments We to shareholder positioned creating incremental and value come. continuing

A our second As we and strong to quarter. are mentioned the outlook including of our updating XXXX. number year contributed factors the financial the for by results Jay, increase, for increasing again

world. restrictions the social we on half Going year, operating forward, and second the to travel normal returned around as increase during ease the gatherings to costs and of support staffing levels expect

now is to XXXX. revenue of for relative And of an expect for XX% increase outlook EBITDA, adjusted updated Our increase XX% to we XX% to an XX%.

and the outlook outlook significant modest. Further, such, the internal. slides. be for year. is the would third year completed passed now again the I improved stages We remainder in the going quarter. the my of the the outlook relative of of as like to largely we also turn for of will year pandemic. prepared performance accompanying reassess growth after update and variances And acquisitions to operator will have This in the full concludes last expect That now questions. to is result, important second and that to forward And call remarks, It to embedded as operating risks outlined uncertainties we the the in the more early note anniversaries be subject the our as to the last a half back year

Operator

Instructions]. [Operator

line question comes with Raymond first James. Our Frederic of from the Bastien

Frederic Bastien

if the And broadly on the the was you can regions? advisory factors discuss just wondering growth please across drove the internal outsourcing and strong strength consistent that side? Jay,

Jay Hennick

a & this growth There transactions M&A in bit little of quarter. Outsourcing in Advisory the was in

surprised segment continues particular But So And just than we that to point there's the were bit other this there's of nothing extent strong. quarter. and of that. otherwise, growth it ourselves to little at really the business in grow a be to

Frederic Bastien

of cross-selling services of you Are the sort platform? maybe benefits your the seeing across

Jay Hennick

an cross-selling for element. Well, is sure

We're a return and relooking could I demand and of existing of think lot services around services. advisory lot adjust a infrastructure seeing be new we changes -- to pent-up offices we're the what of lot at help and making there for a work, norm. seeing was to

or alteration an more of I potential and is of that demand alteration cross-selling, So think construct some well. office but the really as to driving pent-up

Christian Mayer

some that QX assignments, of Fred, we a that thing I'd one to of other on in various world. had few add parts is delays management the of project our 'XX, in

back all and those normal proceeding. that's So contracts to obviously are

of So variance that's that well. as part

Frederic Bastien

helpful. That's Okay.

you, to share able capital tuck-in your of the practice? markets to you While on the we quantify growth. acquisitions you the got contribution Are both overall of outsourcing Christian, impact used and to advisory M&A

Christian Mayer

for rates consolidated basis, into -- to growth the internal the get line. service got we've the on around mean not going by I the No. details but we're a rates growth

Frederic Bastien

seems All talent? their the and right. enough. labor your tighter professional the Fair by ability to for retain tighter My question, market getting and be to day, of has last this slowed recruit and crude

Jay Hennick

it in year differently I management, for It different not much last us in the has, in say were brokerage, transaction impacted property across think has areas. services as versus Yes, nicely. our sure. board would up I

but I in an there. critical. attractive And investment successful, is is also think talent but new Engineering it's in continuing the all strong area are out warfare is an it's and areas is our firmly of work area there. momentum. We've in programs, another But recruiting management gain Design, I to ongoing right that people which to think place critical. been & where picking It's part battle the

not just question, interestingly, many use that for -- completed ever. We abuse think survey And metric strength better of for across stronger the gauge the to Colliers. through have past unique our were retention that seems and been but annual rates at our culture it's months, just bodes we So of high us. And of sort to our your very years year. other -- deeply talk it We us it's current and just well board, about a our variety each for I things. for XX but that and get than we numbers culture, the that's, and engagement a that's to

gratified we're it. by So

Operator

[Stephen of line Capital the Markets. from comes question BMO next with MacLeod] Our

Stephen MacLeod

or top Americas just just on the sort you Americas, give growth can to strong you just the wanted geographic and saw color shaping if regional I'm the I bit of And around little QX? sort -- there a around very had into how curious strength you any of are things of line. up circle in

Christian Mayer

quarter. in right. Yes. were Steve, you're Americas mean, the I very the strong

strong had -- were broad-based was it across that region. U.S., think even business I acquired and year-over-year engineering there. last the that summer. we're acquired LATAM was the the X performance early certainly, business from Canada, benefiting businesses the And mortgage

mean mortgage in the space quarter I in space. a quarter Also another not those comparative numbers itself activity be multifamily but the So the refinancing multifamily originations had great for year strong are quarter current in quarter, to and strong. in continues period. And in the the

to that was contribution overall So a results. nice the

remarks, ahead during we than quarter. in obviously, leasing double, both rebound do in the things, capital nicely, occur some to As industrial look markets in future the to markets leasing very prepared of my were more strong I and quarters. leasing outlined work as and Capital up especially side still some to and office

Stephen MacLeod

you I call if mentioned sort you or, weakness also the That's -- a prepared return that? about offices couple with office more little of in Can bit are quarters evolved that you And over talk like work last and know picking generations guess, great. around remarks, guess, how up. the around some has I don't of just things I it trend then to

Christian Mayer

office impacted, significantly quarter each has So obviously, over the been year. past leasing

in leasing revenues stage. levels -- in activity we've sorry, our XXXX industrial is component as our below XXXX X% and in a over indicated than levels. leasing now current prepared it Office is of relative smaller down was, Our leasing XXXX have to remarks. my being leasing resulting And leasing XX% leasing revenues overall office levels, around the overall overall at rebounded still leasing fact, office being increased,

think are I look improving. as things And continue. that to ahead, improvement expect we we So

Jay Hennick

the that, The I one clear but add that around to is world. I would anything And now. is office think that, Steve, thing applies leasing right that virtually

leases seeing offices. You're in

bold, vaccinations plans that means. and you reconfigured. very September as back work finalized being very short-term for be But leasing is should to insisting we what from their their on they are haven't that most And Are office the industrial understand markets? a how probably higher. the office really remember, to in said, are compared in time comes firms forms taking as taking on coming some we've leasing a component other uncertain. strong approach. Some to but is everybody So still generally offices market? always They in they that Christian still leasing Are return back revenues practice. generate the had They're

are leasing terms market well to certainty, our -- back it's markets so and numbers in but And doing are still numbers capital so rebounding in lag terms that's -- doing with the why of some so come of well it. of going the until office clarity piece starts to

Stephen MacLeod

of color. last but looks curious outlook. relative QX Okay. year where is about -- bit That's your and down QX. just the sort little revenues back to numbers your just rebounding you is really this turning then -- And saw just a what still kind I'm outlook of maybe And that the can on were year-over-year? It in -- a the of organic QX increased finally half like if talk great you back to maybe QX, continuing whether strong momentum into of outlook

Christian Mayer

great half Steve, question. last was QX year. of it's improvement back year last a a over significant of The

-- anniversaries we those So think things -- progressively and have closer. of about through [lapped] something larger that's our of half, XXXX. And to we've back cognizant XXXX acquisitions. improved going XXXX become now are And also we comparisons as we're also the certainly our

June. -- and had So organic in as acquisition, fourth may particular, which also year, the second And in Colliers we will also, primarily. the with record multifamily completed Colliers origination Mortgage quarter remember, the activity the last earlier, had Mortgage as growth you the year third and I mentioned half in refinancing. And we in last mortgage be

we those will comparisons So the will in ahead. -- some second that make as half tougher for 'XX of look

Operator

Our the next Scott from comes line with CIBC. question Fromson of

Scott Fromson

mentioned reimagining discussions you So offices. the on of

Just high the recognizing of... Difficulty] [Technical degree

Jay Hennick

you Can that say can't hear you. we again? Sorry,

Scott Fromson

me? hear you Can

Jay Hennick

No.

Scott Fromson

up. hang I'll Okay.

Operator

next line William Stephen Our Sheldon from of question comes with Blair. the

Stephen Sheldon

for me. one Just

entertainment to a of environment, temporary of that kind the more for going assuming that second commentary XXXX the operating you're costs to normalized and be in what of cost are expect, you operating less Would in guess, about of the areas and this typically in meaning savings normalization increase into so half year like the or I right you and half second that travel be the first the back half back to On year, XXXX? or some way think to moving it?

Christian Mayer

around obviously, also, very X.X and a events and like taken stuff with support operating been last we've we've and and years staffing the pandemic, for support meetings the and the that. out Stephen, Well, approach costs, of travel the business disciplined

going Some to the included of half don't year. our outlook. And prior the to costs we full is expect that return. the activity amount had we of return anemic in in the certainly, back of that that's But

cost about our expectation result future. is XX% you the may operating took those margin we leverage and As will will in and recall, out And of return in that not the $XXX of million balance will and costs about during improvement XXXX.

So that's will this the the think we second operate return it. now very costs things But half through the those lean thinking that some are we in of the continue first of half. way to opening way And we're up year, in that disciplined about way. and a

Operator

from comes George question Doumet with the next Our of line Scotiabank.

George Doumet

quarter. in Congrats a strong really

the that what of flat. were a the talk XXXX, normalizes It that of bit little [indiscernible] maybe guidance half the in your versus does XX% Just I'm that office seems down assumes just back as the things kind much of about level, that of guidance lease kind that guidance. wondering to midpoint extent suggests that. assume how or

Christian Mayer

XX% the in is to EBITDA in growth year-over-year our clarify, XX% to just George, range. So

to have else been something there. may referring You

George Doumet

second implies number. kind strong -- that half? half second the it implies about -- given half, to first was I in It the second the of really think terms of I talking in half

Christian Mayer

we XXXX. I mentioned, for -- improving in I of us Yes. the mean, had half were as results second

So our become going the back closer terms half in to of comparisons are this year. of

when We benefit Because mentioned, year that of be period growth back of have I significant of finish in acquisitions as activity a period of had for is business the back half record half the year year caused levels versus last this half of half [wrapped]. the this you the last year the very in both the XXXX. XXXX, current Also, and prior completed year, that mortgage that have during back year also the in with the the now They'll strong had which consider were first acquisition

We as also expect operating asking just questioner the to previous return was costs about.

see in in going So transactional And There's there upper will some as we business. our and to at way factors uncertainty here, the the COVID-XX markets certainly play hope the occur in revenues that And the range. are that terms But Pac lingering of number of mentioned, that is the we terms end -- think market. what lockdown, outlook. mean we want a range is to happen, we that maintain Asia the it's we still in impacts and there about in uncertain of what's some can the will of a of back achieve of there that we half given still are that outcomes year. the

George Doumet

at of question year, in the are to in lease to relative note, And last office half 'XX on there maybe all? the for or that you assumption the to willing share kind back Understood. of year embedded Okay. relative

Christian Mayer

would a at to -- for we've end, band. got range mean And as there, obviously, and we wide assumptions the guidance Yes. revenue I EBITDA look, whole. relatively close of be the XXXX think, a higher coming, leasing a the levels is I

George Doumet

And question a Great. Okay. Jay. maybe to

resiliency the way maybe and extent today? the to of strength are wondering what you'd be bigger much just I'm recent the in than you want Industrial a to segment, there Given

Jay Hennick

I'm question sorry, I your there. hear the of didn't last part

George Doumet

the in segment Yes, bigger have just bigger today? a to do Industrial -- be wondering you we sorry. extent what like than a I'm presence would to much in much

Jay Hennick

Industrial In the segment?

George Doumet

Yes. Industrial leasing.

Jay Hennick

Yes. Oh, industrial leasing.

share Look, think picking services. we transaction for in Okay. market up market been I all have

our at opportunity. because strengthen market, a for we we question areas look of difficult it's try So gaps, to and answer market our

in leasing so players I our the has its to industrial of for of part side the a strategy. is key as of all And known would say, strength segments earlier, [Colliers] alluded always I world. been

leasing was impacted less So a central us us. for office big been so office, office others. effective. CBD opportunity always high-quality And opportunity the expand -- leasing, it's district Obviously, was for business office, leasing has mean our tripled

I think so a little more than it has bit us.

recruiting some leasing during variety have COVID office major around the strength strong in we at Although of been a markets very CBD world. successful

But quite our as to thought we you the we'll step back, were peers. how unique business come of So of we this out is our just where that respond. amongst is I see diversification going

diverse in X a our with now plus business and many ways. have including wider management We additional platforms, so investment much and

side important world, areas So from of for will of greater portion year critically to nicely. has But or I and longer. think Colliers business, you're a growth continue profitable the those X a made other next is or see name the over although highly our grow the globally that and transaction to around business our going

George Doumet

helpful. talk as That's about share fundraising into you last management, kind into [indiscernible] expect half if may. maybe in Very the the just Can second there next a good go that and we of with that's bit And Okay. activity some momentum and through us activity growth one, year. little Or fundraising the I you year? investment AUM. one

Jay Hennick

every with in the X, They X, has Yes. I categories. would decile in quartile, Harrison over have on metric, certain start phenomenal since top, years Harrison of deliver Street, differentiated. let's inception. assets the delivered Street, to been focused that They've time, able results in period results. X always are say, a long

record or never strong is as touching there's third lots activity, you will allocation. that But they are Street. transactions, wood North cautiously as I'm -- their I fundraising looking interesting manage Harrison allocating returns appropriate allocate quarters Europe, say America a investors. this again never delivered they're result, in And what's they've the great those for this, very well. capital optimistic the in grow. for and to to a North area for is fundraising Their Street. establishing know, next people be days, happening a live more very We in and new You them also fund bit will might quarter call little quarter complex, and I'm And capital, And fourth as the XX in capital strong funds which Canada, European both -- in become first to a Harrison where continue it's they're hopefully of in They're both that know. whether in America. for

And team It's so prospects Harrison years. improve in the And infrastructure, infrastructure, a around among open-ended stake other the and that with like we're very on things management social the funds significantly excited have been they've that things. about long for significant in Street. are business a the to a coming done time, dynamic business, driven equity

Street. we're about yes, So very Harrison excited

Operator

question of TD next the from Securities. Our Young comes with Daryl line

Daryl Young

First sets. loss you're [indiscernible] question that prepandemic, integrating of return Americas. mentioned But is path there on the a pandemic. and even a the be I margins I cost cost would to platform then that in on in Christian, the taking of a you think sort know,

just kind you -- of or if margins if run to share wanted So if today's opportunities are rate rate? or I today's the was some there run wondering a of

Christian Mayer

margin. in Colliers Engineering, in both operation. number terms with of they X have the completed historical Americas absent relative of that the the meaningfully because QX has our were to the are of Colliers been enhance acquisitions numbers, this as Yes. pandemic, years well. Mortgage opportunity, the is But U.S., accretive efficiency And are I mean to the to now that higher have higher, of the which in the last year last mix service meaningfully that year, we margins where we over it focused and

to We are in have or sized then active year, within process. more X meaningfully and that businesses every integrated property costs been we businesses and and for those we've our are Businesses, And and we time, business that transactional through become acquirers years. X and acquired businesses management. over very many, X, integrated able we've there acquired efficient U.S. the many reduce

revenue. to of taking year-to-date fruit, flow-through also XXXX. starting steps quarter second become transactional terms the from and particular, bear are We years, couple over have in so -- productive in last the more to those steps evidently of for the our results and here in And

I on margin range. continue over years. think to on U.S. what the get that transactional or we've up business, X a the next seen we're hope to enhancement And a in X is then historically our the business, path X% good to relative margin path we and business particular, to that XX% in

So a pretty consolidated our over of large impact which it's lift pretty will a meaningful business, positively time. our on part margin

Daryl Young

or in levels? Great. sales just what how for Okay. just pull the the future And of of longer-term then transaction low the a of activity activity on on is your views much rate transaction macro environment? are outlook side, curious deals forward what is And maybe your kind

Christian Mayer

Yes. the markets available. are and transactions strong. some sense And credits mean, I to confidence that timing. there are a think pull forward is of there there think out demand that borrowing guess I and businesses desire have terms But low pent-up generally for activity. they're is of investors I in I mean costs I transact. -- There is there

an think much that mentioned. issue of factors pull or just strong -- I I It's So forward as activity don't pent-up it's for demand. is the

Daryl Young

services environment U.S? Okay. funding of announcements, spending. particularly just is one in looking seen the the We've for work your then business, for obviously, just engineering pipeline the one. curious U.S. Great. in And what And the like some in last infrastructure big

Jay Hennick

the management translated of would for. were hoping into for and -- course, boom infrastructure The better but good. project pipelines have say, spend pipelines not I are of engineering yet are than that we they last year,

about of contracts. business about that them will lot long-duration a things of doing a But because got translate. there's it's great plan. is approving the got Congress one think excited I talk about we've in that We're -- that now

full pipelines. got we've one earlier, mentioned of And so is the as factors And I constraining people.

we And capitalize we'll -- so we're But trends, as do. roll see hope it great we're we people great to positive, and execute. soon we the in But to how the I to -- are need wait so spot. tailwind a And well think the think going to I out. as is -- and starts

Operator

comes Matt RBC Logan Markets. the with question next Our Capital line from of

Matt Logan

your comments your for touched these you businesses perhaps and into as what's Can your since some on press as engineering Colliers acquired Colliers the in thoughts talk Jay, future. release, engines Engineering space on you changed developing the competitors well. growth about Mortgage you following and

Jay Hennick

question. great a It's

First lot all, of changed. a has

they that And professionals platform. sense the that to. of a design added got And revenue. They've XXX% of Colliers their philosophy it they every a that active that the they be thought was acquired is example. operating something firm, and and great Colliers. be time, partnership is the between by rebranded than used to added big is We did philosophy different they've not they Engineering that great of perpetual and want in of we've and an firm business, of One the make sort we be pipeline started a platform others acquisitions. since or be which want Colliers an of with things by a as we're started day, the happen to in that acquisitions the as what we people Their probably wanted to XX% want partners in partners, with a XX% quite owned

we of so disciplines a some the And And bullish. gone to have from part considerably in that business. brought been Colliers I feeling has Margins we standpoint. that the think that table of up are

I very don't work So done the ultimate engineering we and other what don't. something that do, as We bring to around good need clients, others not need the to work we we which is that the to by dissimilar think to the that the our need is to of biggest Colliers. be the relationships firms. We table at be some have we the leverage

margins would it. a indicate exceptional before how acquired see about differentiators. how their at Colliers to that it's happy effectively. are professional capital between strong that business its And I those Engineering the after. better a and we to So couple a of the very understands and in businesses understand to it's that business, even the design services its of and having ownership doing professionals manage I'm day, But shared how end partner both operates execute think And all grow

Matt Logan

diversified maybe If on than $X positioned Colliers to debt the and Would to of one to sustainably that business? higher leverage? seen with leverage, how thinking the X view, range fair should say well a EBITDA we we the your instead about of turn incredibly it comments managed Great be in continuing the medium- evolution take perhaps And X billion can we've to turn acquisitions. business color. the X on X somewhere be longer-term with more liquidity. historically given with more is range be under turn to

Christian Mayer

that leverage delever X back the down Yes. comfortable to range. great time, take to be the That's At larger and level acquisition leverage then Xx a line also range. to we present I post in question, about as are X to acquisition think higher into having Xx would comfortable a the think a we Matt. We to potentially be temporarily path a

we're thinking way the that's right about it now. So

our the that with of of EBITDA -- at we're your increase mix, recurring, a and EBITDA revenue sustain X/X base there leverage the plan recurring something of could we our on higher business around is no level higher our certainly we thinking as terms base into something that question about execute and that that In as like leverage, future. being of type we question, for

Jay Hennick

leverage It's every happy worry single take life, invest that's can't private to in day. would I this only important. different management about up people of to In The they're the how and you future. a that, you Matt, leverage I and add there's piece equity, When Xx this, do do you'll X is -- and that, don't differentiation and of this. a thing know to a this understand piece but

You can't That's cash flow, And invest the cash in people. flow, did everybody technology, you did talks whatever been can't get we invest in bank down about we levels. the to pay way. is never our day every single -- all

be believe more could And of of have you lot has think, which also create equity growth be somebody value. if in growth, we our Xx business sustainable would Christian's leadership and think have but long-term I equity to leverage near-term structure over create And been a private what not leverage sustainable up, a that in ratios I about I are our Xx environment, started successful the And And recurring when been couple our not and I and at easily of value. as And right, it would to many partnership do, our revenue. up move be our you we recurring a think all our or to I leverage could as accomplish. creating partners private platforms trying a our And we long-term a that levels wouldn't believe value, to business fine. But type I revenue. And we're managing our leverage a way just to some the teams to has years. bring we been level has been personally. long-term way. Our long-term just partners. it. do way build shock, is shareholder way It's may

Matt Logan

turn And here I back. hostkeeping couple call maybe a questions the of just before

your of would QX QX incredibly QX for have In for half but at know is the second terms guidance QX? outlook vis-a-vis I of strong, your all year, and changed the

Jay Hennick

pretty Not the outlook. the updated way Yes. that's we've Matt, And similar. in embodied really meaningfully,

Matt Logan

margin, Do or sustainable would level your we your And terms as XXXX. in of of XX.X% see around growing imply even you a XXXX? perhaps into guidance as for head this

Jay Hennick

it But goal where No, in or And XXXX. absolutely it see over go sustain we sustainable. I our to time. it's be Yes. increase think would to we'll

Operator

for the questions not to would now queue. turn call I'm showing back closing remarks. to in over I further the management any like

Jay Hennick

in with conference second very you, look call. third quarter Have operator, hopefully, a much, for thank And well. positive everybody, our we'll there participating forward results call. quarter as you We and crossed, fingers have this Okay. to Thank day. conference good

Operator

and conference Ladies concludes call. your Thank participation. gentlemen, this today's for you

now You disconnect. may

Colliers International (CIGI) 7 Aug 212021 Q2 Earnings call transcript