TCC's Swan Song for Quarterly Earnings Calls

The definitive proxy that lays out the history of the $2.2-billion merger agreement will be forthcoming within days. If M&A past practice holds true, the proxy probably will hit the SEC at the end of business today.

Robert E. Sulentic, TCC chairman and CEO, kept to the quarterly program, but did stress that the merger is sound for shareholders, clients and the rank and file. The combined company "will be unlike anything that the industry has ever seen," he vowed. "It will be the most comprehensive and capable platform that the industry has ever seen."

Insiders told GlobeSt.com that the first CBRE-TCC road show was held shortly after the earnings call. Sulentic, who didn't tip his hand about the Dallas team meeting, assured shareholders and tuned-in TCC employees that "their future is brighter than it's ever been before." He also reported that "generally the morale is very strong" despite the inevitable uncertainties for employees and competitors who are trying to "unnerve" them.

According to the SEC filing from the rank-and-file presentation, the combined 21,000-employee company has a post-merger capability of $120 billion of investment sales; $46.2 billion in leasing; 270 corporate services' relationships; 1.6 billion sf in property and facilities management; more than 1,500 project management professionals; 45,400 assignments in appraisal and advisory; $17.8 billion in loan originations; $4.8 billion of stand-alone, in-process development and investment; and $25 billion of stand-alone investment management.

With respect to the earnings call, "the bottom line is net income is up 9.3%," said Derek McClain, TCC's CFO. The only slide was investor services' revenue, down 3% for the quarter, but up 8% in the year-to-year comparison. Nonetheless, Q3 revenues totaled $247.1 million, up 13%, while the year-to-date hit $702.1 million, 16% higher than last year at this time.

Global Services was 24% higher or $16.4 million in a pre-tax accounting in Q3 than it was at the end of the Q3 2005 close. The division's revenues rose 12% to $234 million, with facilities management, corporate advisory services and project management rising 19%. To date this year, the division has reeled in $670.6 million versus $581.3 million in 2005's first nine months.

"I am extremely proud of the tremendous strides we have made in our business since our 2001 reorganization when we tackled necessary change in the face of a tough market," Sulentic said in yesterday's earnings release.

Although the industry's practically labeled it a done deal, Sulentic's street-savvy dealmaking surfaced in the call's final moments. "There's a reasonable chance there won't be a next call," he said in an open-ended parting to the call.