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Revenue rises 24 percent to $845 million; adjusted EPS of $1.12 compared with $0.83 in Q2 2010
Operating expenses excluding Restructuring and acquisition charges were $774 million for the second quarter, an increase of 19 percent in local currency, compared with operating expenses of $619 million for the same period in 2010. Similar to the first quarter of 2011, the year-over-year increase was principally driven by variable costs to support revenue growth and build the firm’s pipeline for the second half of the year. The firm maintained its 64.4 percent total compensation to revenue ratio in the second quarter.
Year-to-date operating expenses excluding Restructuring and acquisition charges were $1.4 billion, an increase of 18 percent in local currency compared with the first half of 2010. Balance Sheet
The firm’s net debt position, which includes deferred acquisition obligations, increased by $184 million compared with June 30, 2010, to $¬832 million, primarily due to funding the King Sturge acquisition in EMEA during the second quarter of 2011. Outstanding debt on the firm’s long-term credit facility was $444 million at quarter end.
During the second quarter, the firm announced that it had amended its $1.1 billion long-term credit facility. Among other items, the amendment reset pricing with initial pricing of LIBOR + 1.625 percent, extended the maturity to June 2016 and provided for add-backs to EBITDA for acquisition-related expenses. The firm anticipates making the second deferred payment related to the Staubach acquisition of $150 million in the third quarter of 2011.
Business Segment Second-Quarter and Year-to-Date Performance Highlights
Americas Real Estate Services
Second-quarter revenue in the Americas region was $348 million, an increase of $53 million, or 17 percent in local currency, over the prior year, led by Leasing and by Capital Markets & Hotels, which more than doubled to $32 million. Year-to-date revenue in the region was $636 million in 2011 compared with $524 million in 2010, an increase of 21 percent.
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