CBRE Posts Quarterly, Yearly Losses

The losses compared with profits of $15.1 million for the fourth quarter of 2002 and $18.7 million for the full year in 2002. The company attributed the losses mainly to the amortization expenses as well as merger and integration-related charges in connection with the acquisition of Insignia Financial Group last year. The company further explained that the losses have to do with the accounting for the revenue backlog acquired in the Insignia transaction. Net income cannot be recognized from purchased backlog; hence this amortization expense offsets that portion of operating income that was generated from the Insignia backlog acquired, the CBRE financial report says.

Concurrent with announcing its financial results, the company, which is the parent corporation for CB Richard Ellis Services Inc., officially changed its name from CBRE Holding Inc. to CB Richard Ellis Group Inc.

Revenue totaled $621.3 million for the fourth quarter of 2003, an increase of $244.8 million from the fourth quarter of 2002; and $1.6 billion for the year ended Dec. 31, 2003, an increase of $459.8 million from 2002.

CB Richard Ellis Group Inc. has filed a registration statement with the Securities and Exchange Commission for an initial stock offering that would take the company public and raise up to $150 million. Although the company is privately held, it files public financial statements with the SEC because it has public debt outstanding.