CB Richard Ellis Group, Inc. Reports First Quarter 2009 Financial Results

LOS ANGELES--(Business Wire)--
CB Richard Ellis Group, Inc. (NYSE:CBG) today reported revenue of $890.4 million
and a net loss on a U.S. GAAP basis of $36.7 million, or $0.14 loss per diluted
share, for the first quarter of 2009. Excluding one-time charges1, the Company`s
net loss2 for the quarter was $7.5 million, or $0.03 loss per diluted share.
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)3
totaled $38.4 million for the quarter, which was negatively impacted by the
inclusion of $15.7 million4 of one-time charges.

These results compare with first quarter 2008 revenue of $1.2 billion; net
income on a U.S. GAAP basis of $20.5 million, or $0.10 per diluted share; net
income excluding one-time charges of $31.7 million, or $0.15 per diluted share;
and EBITDA of $88.5 million. First quarter 2008 EBITDA included $16.1 million5
of one-time charges. In the first quarter of 2008, the Company was still
experiencing relatively strong results with particularly good growth in
outsourcing and leasing revenues.

First quarter 2009 results were in line with the Company`s expectations in light
of the broad weakness in sales and leasing markets worldwide. The Company`s
aggressive actions to reduce structural operating expenses and diversify its
revenue sources helped to mitigate the impact of these adverse marketplace
trends.

"Despite the formidable challenges posed by today`s economic environment, we
were able to produce positive EBITDA for the quarter due to our efforts to
diversify our revenue base, focus on our clients, and aggressively reduce fixed
costs," said Brett White, president and chief executive officer of CB Richard
Ellis. "The all-in 29% reduction in operating expenses exceeded the 28% decline
in revenue, which is indicative of our ability to act decisively to streamline
our operations, serve clients more efficiently and support our margins. Our
global reach, broad service offering, strong brand and depth of professional
talent position us well to capitalize on the opportunities available today -
particularly corporate and institutional outsourcing services and property
restructuring and repositioning services. Further, our very effective cost
cutting efforts position us to experience strong operating leverage when the
market recovers, which it inevitably will."

While the Company`s outsourcing business continues to add new clients and expand
existing relationships, its revenue declined slightly for the quarter as a
result of client actions to restrain project spending and reduce outsourced
staffing levels (which lowers reimbursement revenue) as well as a loss of
clients due to consolidations and bankruptcies. Ten new corporate customers
signed outsourcing contracts in the quarter, including France Telecom,
StatoilHydro, Pepsico, and Locartis, while service offerings were expanded for
five existing corporate customers, including Nokia, AON and NCR.

The Company also continued to improve market share in investment sales. In a
highly capital-constrained market it was responsible for 17.1% of all U.S.
investment sales transactions during the first quarter - up from 14.2% for the
same period in 2008.

Expense Reduction Target Raised

During the first quarter, management increased its cost containment targets by
an additional $100 million of annual savings, as the Company continued to move
assertively to align its expense base with lower revenue opportunities in the
current market. Much of the incremental cost savings target has already been
identified. The Company has now eliminated or targeted for elimination between
$475 million and $500 million of structural operating expenses, versus 2007,
including the $385 million of previously announced cost savings plans, which
have been implemented. These operating cost reductions are in addition to
reduced variable commission and compensation expense that results from lower
transaction revenue.

In conjunction with the implementation of cost savings actions, the Company
incurred one-time expenses consisting of severance and office closure costs
totaling $7.9 million in the first quarter of 2009.

Credit Amendment Enhances Flexibility

During the quarter, the Company successfully renegotiated its credit agreement,
providing greater financial flexibility. The credit agreement amendment,
announced on March 24, 2009, allows for a higher maximum leverage ratio, lower
minimum interest coverage ratio, modifications to the EBITDA calculation for
financial covenant purposes, and other provisions that give the Company greater
capacity to proactively manage its balance sheet. The Company remains in
compliance with all financial covenants under its credit agreement, and has
substantial cushion should market activity weaken further. In connection with
this amendment, the Company prepaid $105.5 million of its term loan balance that
would have been due at the end of the first and second quarters of 2009, and
wrote off $29.3 million of financing costs in the first quarter of 2009.

Americas Segment Results

Revenue for the Americas region, including the U.S., Canada and Latin America,
was $577.0 million for the first quarter of 2009, compared with $783.5 million
for the first quarter of 2008. Operating income for the Americas region was
$22.9 million for the first quarter of 2009 compared with $62.4 million for the
same period of 2008. EBITDA totaled $38.6 million for the first quarter of 2009,
compared with $66.3 million in last year`s first quarter. While market
conditions remained weak, operating expenses for this segment declined by 30%.

EMEA Segment Results

Revenue for the EMEA region, which mainly consists of operations in Europe, was
$162.2 million for the first quarter of 2009, compared with $242.8 million for
the first quarter of 2008. The EMEA region reported an operating loss of $6.1
million for the first quarter of 2009 compared with operating income of $8.0
million for the same period in 2008. EMEA reported negative EBITDA of $3.1
million for the first quarter of 2009, compared with positive EBITDA of $11.7
million for last year`s first quarter. Partially mitigating the revenue decrease
was a 38% reduction in operating expenses, reflecting aggressive actions to
streamline operations and cut costs.

Asia Pacific Segment Results

In the Asia Pacific region, which includes operations in Asia, Australia and New
Zealand, revenue totaled $93.1 million for the first quarter of 2009, compared
to $137.4 million for the first quarter of 2008. Operating income for the Asia
Pacific region was $0.7 million for the first quarter of 2009 compared with
$12.3 million for the same period of 2008. EBITDA totaled $1.9 million for the
first quarter of 2009, compared to $13.7 million for last year`s first quarter.
Our Asia Pacific segment reduced operating expenses by 34% for the quarter.

Global Investment Management Segment Results

In the Global Investment Management segment, which consists of investment
management operations in the U.S., Europe and Asia, revenue totaled $37.3
million for the first quarter of 2009, compared with $39.5 million in the first
quarter of 2008. The decline in the first quarter of 2009 was attributable to
lower acquisition, disposition and incentive fees as compared to the first
quarter of 2008. Global Investment Management had operating income of $6.7
million for the first quarter of 2009 compared with an operating loss of $2.1
million for the first quarter of 2008. This segment reported negative EBITDA of
$0.4 million for the first quarter of 2009 versus negative EBITDA of $1.4
million in the first quarter of 2008. Operating income for the first quarter of
2009 excludes a net, non-cash write down associated with decreases in
co-investment asset valuations of $5.2 million, which is included in negative
EBITDA.

Assets under management totaled $36.0 billion at the end of the first quarter,
down 6% from year-end 2008 mainly due to lower property valuations and currency
declines.

Development Services Segment Results

In the Development Services segment, which consists of real estate development
and investment activities primarily in the U.S., revenue totaled $20.9 million
for the first quarter of 2009, compared with $27.7 million recorded in the first
quarter of 2008. This revenue decrease was primarily driven by reduced
construction revenue, which led to a corresponding decrease in construction
expense, thereby not significantly impacting operating income or EBITDA.

This segment reported an operating loss of $18.8 million for the first quarter
of 2009, compared with an operating loss of $10.3 million for the same period
last year. Driven by cost containment efforts, first quarter 2009 EBITDA for the
segment was $1.4 million, compared to an EBITDA loss of $1.8 million in last
year`s first quarter. The operating loss for the first quarter of 2009 includes
the gross, non-cash write down of real estate assets of $9.4 million but not the
offsetting portion attributable to non-controlling interests of $8.4 million,
while EBITDA includes both items.

Development projects in process as of March 31, 2009 totaled $5.4 billion, down
slightly from year-end 2008. The inventory of pipeline deals as of March 31,
2009 stood at $1.5 billion, down 40% from year-end 2008.

The Company believes that the commercial real estate market will turn, and when
it does, the actions that it has taken to preserve its geographic presence and
services offered, together with the reduction of operating expenses, will enable
it to disproportionately grow market share and earnings versus the rest of the
industry. Until the overall market improves, management believes that the
largest opportunities will exist for the Company's businesses that focus on
outsourcing, distressed property management, asset restructuring and
disposition, and within certain areas of global investment management.

Conference Call Details

The Company`s first-quarter earnings conference call will be held on Thursday,
April 30, 2009 at 10:30 a.m. Eastern Daylight Time (EDT). A live webcast will be
accessible through the Investor Relations section of the Company`s Web site at
www.cbre.com.

The direct dial-in number for the conference call is 800-700-7784 for U.S.
callers and 612-288-0318 for international callers. A replay of the call will be
available starting at 2:00 p.m. EDT on April 30, 2009 and ending at midnight EDT
on May 13, 2009. The dial-in number for the replay is 800-475-6701 for U.S.
callers and 320-365-3844 for international callers. The access code for the
replay is 995471. A transcript of the call will be available on the Company`s
Investor Relations Web site.

About CB Richard Ellis

CB Richard Ellis Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company
headquartered in Los Angeles, is the world`s largest commercial real estate
services firm (in terms of 2008 revenue). The Company has more than 30,000
employees (excluding affiliates), and serves real estate owners, investors and
occupiers through more than 300 offices (excluding affiliates) worldwide. CB
Richard Ellis offers strategic advice and execution for property sales and
leasing; corporate services; property, facilities and project management;
mortgage banking; appraisal and valuation; development services; investment
management; and research and consulting. CB Richard Ellis has been named a
BusinessWeek 50 "best in class" company and Fortune 100 fastest growing company
two years in a row. Please visit our Web site at www.cbre.com.

Note: This release contains forward-looking statements within the meaning of the
''safe harbor'' provisions of the Private Securities Litigation Reform Act of
1995, including statements regarding our growth momentum in 2009, future
operations and future financial performance. These forward-looking statements
involve known and unknown risks, uncertainties and other factors that may cause
the Company`s actual results and performance in future periods to be materially
different from any future results or performance suggested in forward-looking
statements in this release. Any forward-looking statements speak only as of the
date of this release and, except to the extent required by applicable securities
laws, the Company expressly disclaims any obligation to update or revise any of
them to reflect actual results, any changes in expectations or any change in
events. If the Company does update one or more forward-looking statements, no
inference should be drawn that it will make additional updates with respect to
those or other forward-looking statements. Factors that could cause results to
differ materially include, but are not limited to: general conditions of
financial liquidity for real estate transactions; a protraction or worsening of
the economic slow-down or recession we are currently experiencing in our
principal operating regions; our leverage and our ability to perform under our
credit facilities; commercial real estate vacancy levels; employment conditions
and their effect on vacancy rates; property values; rental rates; interest
rates; our ability to reduce expenditures to help offset lower revenues;
realization of values in investment funds to offset related incentive
compensation expense; our ability to leverage our platform to sustain revenue
growth and capture market share; our ability to retain and incentivize
producers; the integration of our acquisitions and the level of synergy savings
achieved as a result.

Additional information concerning factors that may influence the Company's
financial information is discussed under "Risk Factors", "Management`s
Discussion and Analysis of Financial Condition and Results of Operations",
"Quantitative and Qualitative Disclosures About Market Risk" and
"Forward-Looking Statements" in our Annual Report on Form 10-K for the year
ended December 31, 2008, as well as in the Company`s press releases and other
periodic filings with the Securities and Exchange Commission. Such filings are
available publicly and may be obtained on the Company`s Web site at www.cbre.com
or upon request from the CB Richard Ellis Investor Relations Department at
investorrelations@cbre.com.

1One-time charges include the write-off of financing costs incurred in
connection with the credit agreement amendment entered into on March 24, 2009,
amortization expense related to customer relationships resulting from
acquisitions, integration costs related to acquisitions, cost containment
expenses and the write-down of impaired assets.

2A reconciliation of net (loss) income attributable to CB Richard Ellis Group,
Inc. to net (loss) income attributable to CB Richard Ellis Group, Inc., as
adjusted for one-time items, is provided in the exhibits to this release.

3The Company`s management believes that EBITDA is useful in evaluating its
operating performance compared to that of other companies in its industry
because the calculation of EBITDA generally eliminates the effects of financing
and income taxes and the accounting effects of capital spending and
acquisitions, which items may vary for different companies for reasons unrelated
to overall operating performance. As a result, the Company`s management uses
EBITDA as a measure to evaluate the operating performance of various business
lines and for other discretionary purposes, including as a significant component
when measuring its operating performance under its employee incentive programs.

However, EBITDA is not a recognized measurement under U.S. generally accepted
accounting principles (GAAP), and when analyzing the Company`s operating
performance, readers should use EBITDA in addition to, and not as an alternative
for, net income determined in accordance with GAAP. Because not all companies
use identical calculations, the Company`s presentation of EBITDA may not be
comparable to similarly titled measures of other companies. Furthermore, EBITDA
is not intended to be a measure of free cash flow for management`s discretionary
use, as it does not consider certain cash requirements such as tax and debt
service payments. The amounts shown for EBITDA also differ from the amounts
calculated under similarly titled definitions in the Company`s debt instruments,
which are further adjusted to reflect certain other cash and non-cash charges
and are used to determine compliance with financial covenants and the Company`s
ability to engage in certain activities, such as incurring additional debt and
making certain restricted payments.

For a reconciliation of EBITDA with the most comparable financial measures
calculated and presented in accordance with GAAP, see the section of this press
release titled "Non-GAAP Financial Measures."

4Includes cost containment expenses of $7.9 million, impairment of assets of
$6.1 million, net of non-controlling interests (minority interest), and
integration costs related to acquisitions of $1.7 million, the majority of which
related to the Trammell Crow Company acquisition.

5Includes an impairment of an investment of $10.6 million and integration costs
related to acquisitions of $5.5 million, the majority of which related to the
Trammell Crow Company acquisition.

CB RICHARD ELLIS GROUP, INC.

OPERATING RESULTS

FOR THE THREE MONTHS ENDED MARCH 31, 2009 AND 2008

(Dollars in thousands, except share data)

(Unaudited)

Three Months Ended
March 31,
2009 2008

Revenue $ 890,449 $ 1,230,925

Costs and expenses:
Cost of services 553,419 704,446
Operating, administrative and other 306,159 432,345
Depreciation and amortization 25,392 23,802
Total costs and expenses 884,970 1,160,593

Operating income 5,479 70,332
Equity loss from unconsolidated subsidiaries (10,197 ) (10,762 )
Interest income 2,305 5,226
Interest expense 34,798 43,005
Write-off of financing costs 29,255 -

(Loss) income before provision for income taxes (66,466 ) 21,791
(Benefit) provision for income taxes (12,047 ) 6,462

Net (loss) income (54,419 ) 15,329
Net (loss) attributable to non-controlling interests (17,730 ) (5,125 )
Net (loss) income attributable to CB Richard Ellis Group, Inc. $ (36,689 ) $ 20,454

Basic (loss) income per share attributable to CB Richard Ellis Group, Inc. $ (0.14 ) $ 0.10
shareholders

Weighted average shares outstanding for basic (loss) income per share 261,999,151 203,110,675

Diluted (loss) income per share attributable to CB Richard Ellis Group, Inc. $ (0.14 ) $ 0.10
shareholders

Weighted average shares outstanding for diluted (loss) income per share 261,999,151 207,730,837

EBITDA $ 38,404 $ 88,497

CB RICHARD ELLIS GROUP, INC.

SEGMENT RESULTS

FOR THE THREE MONTHS ENDED MARCH 31, 2009 AND 2008

(Dollars in thousands)

(Unaudited)

Three Months Ended
March 31,
2009 2008
Americas
Revenue $ 577,041 $ 783,524
Costs and expenses:
Cost of services 383,092 484,368
Operating, administrative and other 156,799 222,455
Depreciation and amortization 14,258 14,308
Operating income $ 22,892 $ 62,393
EBITDA $ 38,641 $ 66,285

EMEA
Revenue $ 162,161 $ 242,761
Costs and expenses:
Cost of services 110,017 142,037
Operating, administrative and other 55,684 89,509
Depreciation and amortization 2,540 3,235
Operating (loss) income $ (6,080 ) $ 7,980
EBITDA $ (3,117 ) $ 11,671

Asia Pacific
Revenue $ 93,094 $ 137,432
Costs and expenses:
Cost of services 60,310 78,041
Operating, administrative and other 29,949 45,321
Depreciation and amortization 2,128 1,753
Operating income $ 707 $ 12,317
EBITDA $ 1,940 $ 13,682

Global Investment Management
Revenue $ 37,296 $ 39,489
Costs and expenses:
Operating, administrative and other 29,382 40,794
Depreciation and amortization 1,203 799
Operating income (loss) $ 6,711 $ (2,104 )
EBITDA $ (426 ) $ (1,375 )

Development Services
Revenue $ 20,857 $ 27,719
Costs and expenses:
Operating, administrative and other 34,345 34,266
Depreciation and amortization 5,263 3,707
Operating loss $ (18,751 ) $ (10,254 )
EBITDA $ 1,366 $ (1,766 )

The following measures are considered "non-GAAP financial measures" under SEC
guidelines:

(i) Net (loss) income attributable to CB Richard Ellis Group, Inc., as adjusted for
one-time items
(ii) Diluted (loss) earnings per share attributable to CB Richard Ellis Group, Inc,
as adjusted for one-time items
(iii) EBITDA

The Company believes that these non-GAAP financial measures provide a more
complete understanding of ongoing operations and enhance comparability of
current results to prior periods as well as presenting the effects of one-time
items in all periods presented. The Company believes that investors may find it
useful to see these non-GAAP financial measures to analyze financial performance
without the impact of one-time items that may obscure trends in the underlying
performance of its business.

Net (loss) income attributable to CB Richard Ellis Group, Inc., as adjusted for
one-time items and diluted net (loss) income per share attributable to CB
Richard Ellis Group, Inc. shareholders, as adjusted for one-time items are
calculated as follows (dollars in thousands, except per share data):

Three Months Ended
March 31,
2009 2008

Net (loss) $ (36,689 ) $ 20,454
income
attributab
le to CB
Richard
Ellis
Group,
Inc.
Cost 4,841 -
containmen
t
expenses,
net of tax
Amortizati 1,808 1,749
on expense
related to
customer
relationsh
ips
acquired,
net of tax
Integratio 1,039 3,293
n costs
related to
acquisitio
ns, net of
tax
Write-down 3,692 6,210
of
impaired
assets,
net of tax
Write-off 17,845 -
of
financing
costs, net
of tax
Net (loss) $ (7,464 ) $ 31,706
income
attributab
le to CB
Richard
Ellis
Group,
Inc., as
adjusted

Diluted $ (0.03 ) $ 0.15
(loss)
income per
share
attributab
le to CB
Richard
Ellis
Group,
Inc.
shareholde
rs, as
adjusted

Weighted 261,999,151 207,730,837
average
shares
outstandin
g for
diluted
(loss)
income per
share

EBITDA for the Company is calculated as follows (dollars in thousands):

Three Months Ended
March 31,
2009 2008

Net (loss) income attributable to CB Richard Ellis $ (36,689 ) $ 20,454
Group, Inc.
Add:
Depreciation and amortization 25,392 23,802
Interest expense 34,798 43,005
Write-off of financing costs 29,255 -
(Benefit) provision for income taxes (12,047 ) 6,462
Less:
Interest income 2,305 5,226

EBITDA $ 38,404 $ 88,497

EBITDA for segments is calculated as follows (dollars in thousands):

Three Months Ended
March 31,
2009 2008
Americas
Net (loss) income attributable to CB Richard Ellis Group, Inc. $ (17,376 ) $ 14,955
Add:
Depreciation and amortization 14,258 14,308
Interest expense 27,700 34,805
Write-off of financing costs 29,255 -
Royalty and management service income (827 ) (7,288 )
(Benefit) provision for income taxes (13,253 ) 11,164
Less:
Interest income 1,116 1,659
EBITDA $ 38,641 $ 66,285

EMEA
Net (loss) income attributable to CB Richard Ellis Group, Inc. $ (8,382 ) $ 6,270
Add:
Depreciation and amortization 2,540 3,235
Interest expense 2 358
Royalty and management service expense 156 4,276
Provision (benefit) for income taxes 2,800 (806 )
Less:
Interest income 233 1,662
EBITDA $ (3,117 ) $ 11,671

Asia Pacific
Net income attributable to CB Richard Ellis Group, Inc. $ 487 $ 3,831
Add:
Depreciation and amortization 2,128 1,753
Interest expense 648 930
Royalty and management service expense 457 2,565
(Benefit) provision for income taxes (1,674 ) 4,986
Less:
Interest income 106 383
EBITDA $ 1,940 $ 13,682

Global Investment Management
Net (loss) income attributable to CB Richard Ellis Group, Inc. $ (5,501 ) $ 2,203
Add:
Depreciation and amortization 1,203 799
Interest expense 548 340
Royalty and management service expense 214 447
Provision (benefit) for income taxes 3,527 (4,918 )
Less:
Interest income 417 246
EBITDA $ (426 ) $ (1,375 )

Three Months Ended
March 31,
2009 2008
Development Services
Net loss attributable to CB Richard Ellis Group, Inc. $ (5,917 ) $ (6,805 )
Add:
Depreciation and amortization 5,263 3,707
Interest expense 5,900 6,572
Benefit for income taxes (3,447 ) (3,964 )
Less:
Interest income 433 1,276
EBITDA $ 1,366 $ (1,766 )

CB RICHARD ELLIS GROUP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

(Unaudited)
March 31, December 31,
2009 2008
Assets:
Cash and cash equivalents $ 423,463 $ 158,823
Restricted cash 34,125 36,322
Receivables, net 625,849 751,940
Warehouse receivables (1) 276,291 210,473
Real estate assets (2) 810,165 790,825
Goodwill and other intangibles, net 1,553,752 1,563,270
Investments in and advances to unconsolidated 143,844 145,726
subsidiaries
Deferred compensation assets 16,823 229,829
Other assets, net 773,169 839,206
Total assets $ 4,657,481 $ 4,726,414
Liabilities:
Current liabilities, excluding debt $ 841,417 $ 979,233
Warehouse lines of credit (1) 276,291 210,473
Revolving credit facility 444,266 25,765
Senior secured term loans 1,968,250 2,073,750
Other debt (3) 11,930 13,498
Notes payable on real estate (4) 622,550 617,663
Deferred compensation liability 9,373 244,924
Other long-term liabilities 205,001 215,385
Total liabilities 4,379,078 4,380,691

CB Richard Ellis Group, Inc. stockholders` equity 64,009 114,686
Non-controlling interests 214,394 231,037
Total equity 278,403 345,723

Total liabilities and stockholders` equity $ 4,657,481 $ 4,726,414

(1) Represents Freddie Mac and Fannie Mae loan receivables, which are offset by
the related non-recourse warehouse line of credit facility.
(2) Includes real estate and other assets held for sale, real estate under
development and real estate held for investment.
(3) Includes a non-recourse revolving credit line balance of $8.1 million and $8.0
million in Development Services as of March 31, 2009 and December 31, 2008,
respectively.
(4) Represents notes payable on real estate in Development Services of which $4.6
million and $4.1 million are recourse to the Company as of March 31, 2009 and
December 31, 2008, respectively.

CB Richard Ellis Group, Inc.
Robert Sulentic, Chief Financial Officer
214.863.3195
or
Nick Kormeluk, Investor Relations
949.809.4308
or
Steve Iaco, Corporate Communications
212.984.6535

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