SANTA ANA, Calif., Nov. 9, 2010 /PRNewswire-FirstCall/ -- Grubb
& Ellis Company (NYSE: GBE), a leading real estate services and
investment firm, today reported third quarter 2010 revenue of
$144.3 million, an increase of 6
percent, compared with revenue of $136.1
million for the third quarter of 2009. For the first
nine months of 2010, the company reported revenue of $417.5 million, compared with revenue of
$385.1 million for the comparable
period of 2009.
The company reported a net loss attributable to Grubb &
Ellis Company on a GAAP basis of $14.8
million, or $0.27 per common
share, for the third quarter of 2010, compared with a net loss of
$21.4 million, or $0.34 per common share, for the third quarter of
2009. For the first nine months of 2010, the company reported
a GAAP net loss attributable to Grubb & Ellis Company of
$56.0 million, or $1.00 per common share, compared with a net loss
of $95.7 million, or $1.51 per common share, for the first nine months
of 2009.
Adjusted earnings before interest, taxes, depreciation and
amortization (adjusted EBITDA) for the third quarter of 2010 was
negative $3.3 million, compared with
adjusted EBITDA of $0.7 million in
the same period a year ago. For the first nine months of
2010, the company reported negative adjusted EBITDA of $19.7 million, compared with negative adjusted
EBITDA of $25.1 million in the same
period a year ago. Both the revenue and adjusted EBITDA
results are consistent with the company's preliminary third quarter
2010 earnings announcement on Oct. 19,
2010.
Company Highlights
- Transaction Services revenue increased 29 percent over the
third quarter of 2009, and 32 percent over the first nine months of
2009, a reflection of improving market conditions and the company's
recruiting success.
- The company recruited 32 senior-level brokerage sales
professionals during the third quarter, bringing to approximately
180 the number of senior brokerage sales professionals who have
joined the company since July 2008.
- Grubb & Ellis Healthcare REIT II acquired three properties
totaling $77.8 million during the
quarter, increasing the portfolio to $138.0
million in total acquisitions as of Sept. 30.
- In September, launched Grubb & Ellis Landauer Valuation
Advisory Services in 12 markets. The company currently has
eight regional leaders and 30 appraisal professionals in 10 states
and is performing work on behalf of numerous clients.
- Subsequent to the close of the third quarter, Grubb & Ellis
received an $8 million payment from
Healthcare Trust of America, Inc., formerly Grubb & Ellis
Healthcare REIT, Inc., as part of an agreement that resolves all
outstanding obligations between the two companies.
- On Nov. 4, the company announced
a strategic alliance with Manhattan Software that will enhance its
management services capabilities, providing a significant
competitive advantage and allowing the company to better service
its clients.
"Our top priority is achieving sustained profitability, and we
made substantive progress toward this goal in the third quarter,"
said Thomas P. D'Arcy, president and
chief executive officer of Grubb & Ellis. "Investments in our
Transaction Services business yielded significantly higher
year-over-year revenue during the quarter, which we will continue
to build upon as we move forward."
D'Arcy added, "Looking ahead, we will focus on continuing to
capitalize on our recruiting success to drive operating leverage
into an improving commercial real estate market; differentiating
our Management Services business by offering industry-leading
solutions, such as our alliance with Manhattan Software; leveraging
our leadership position in healthcare real estate to increase our
non-traded REIT equity raise; directing resources to businesses
with high growth and margin returns; and continuing to lower our
fixed cost base. Based on our current momentum in these
areas, we expect to have positive net cash flow in the fourth
quarter of 2010, and return to profitability in 2011."
OPERATING SEGMENTS
Management Services
Management Services revenue includes asset and property
management fees as well as reimbursed salaries, wages and benefits
from the company's third-party property management and facilities
outsourcing services. Management Services revenue was
$65.3 million for the third quarter
of 2010, compared with $67.5 million
for the same period a year ago. Segment revenue for the first
nine months of 2010 was $207.7
million, compared with $199.6
million for the same period in 2009.
At Sept. 30, the company managed
approximately 247 million square feet of commercial real estate and
multifamily property, which is up from 240 million square feet at
June 30, reflecting the growing
number of management assignments attributed to the company's
Financial Services Asset Management business. During the
third quarter, Grubb & Ellis was awarded five new outsourcing
contracts, and renewed and expanded the work it does for an
additional six corporate clients.
Transaction Services
Transaction Services revenue for the third quarter of 2010,
including brokerage commission, valuation and consulting revenue,
was $59.9 million, an increase of 29
percent from revenue of $46.3 million
for the same period a year ago. The breakdown between sales
and leasing revenue is approximately 32 percent sales and 68
percent leasing. Third quarter 2010 sales revenue was up 121
percent and leasing revenue increased 17 percent, compared with the
comparable period in 2009.
For the first nine months of 2010, the segment generated revenue
of $156.8 million, an increase of 32
percent from revenue of $118.8
million during the same period of 2009. Year-to-date,
sales revenue is up 90 percent and leasing revenue increased 20
percent.
The company attributes the segment's improved top-line
performance to greater transaction volume stemming from prior
investments in attracting top industry talent, as well as the
company's focus on specialty expertise and improving market
conditions.
Investment Management
Investment Management revenue for the third quarter of 2010,
which includes transaction fees, asset management fees and
dealer-manager fees, totaled $11.3
million, compared with revenue of $14.8 million in the same period a year ago.
The segment generated revenue of $30.0
million during the first nine months of 2010, compared with
$43.9 million in the same period a
year earlier.
The company's two non-traded REIT products raised an aggregate
$41.0 million in the third quarter of
2010, compared with $38.7 million in
the second quarter, and $29.9 million
in the first quarter.
At September 30, 2010, the company
had assets under management of $5.5
billion.
OUTLOOK
The company is not providing specific guidance for revenue or
adjusted EBITDA. However, the company does expect to record
positive adjusted EBITDA in the fourth quarter of 2010, and for the
full year in 2011.
Conference Call & Webcast
Management will host a conference call today at 10:30 a.m. Eastern Time to review the results.
A live webcast will be accessible through the Investor
Relations section of the company's website at
http://www.grubb-ellis.com. The direct dial-in number for the
conference call is 1.800.435.1398 for domestic callers and
1.617.614.4078 for international callers. The conference call ID
number is 18260013. An audio replay will be available beginning at
1:30 p.m. ET on Tuesday, Nov. 9 and can be accessed by dialing
1.888.286.8010 for domestic callers and 1.617.801.6888 for
international callers and entering conference call ID 28662210. In
addition, the conference call audio will be archived on the
company's website following the call.
About Grubb & Ellis Company
Grubb & Ellis Company (NYSE: GBE) is one of the largest and
most respected commercial real estate services and investment
companies in the world. Our 6,000 professionals in more than 100
company-owned and affiliate offices draw from a unique platform of
real estate services, practice groups and investment products to
deliver comprehensive, integrated solutions to real estate owners,
tenants and investors. The firm's transaction, management,
consulting and investment services are supported by highly regarded
proprietary market research and extensive local expertise. Through
its investment subsidiaries, the company is a leading sponsor of
real estate investment programs that provide individuals and
institutions the opportunity to invest in a broad range of real
estate investment vehicles, including public non-traded real estate
investment trusts (REITs), mutual funds and other real estate
investment funds. For more information, visit
www.grubb-ellis.com.
Forward-Looking Statements
Certain statements included in this press release may constitute
forward-looking statements. These statements involve known and
unknown risks, uncertainties and other factors that may cause the
company's actual results and events in future periods to be
materially different from those anticipated, including risks and
uncertainties related to the financial markets. Such factors which
could adversely affect the company's ability to obtain these
results include, among other things: (i) a continued or further
weakness in the company's Investment Management business, including
the velocity and volume of equity raised; (ii) the general economic
downturn and recessionary pressures on transaction values of sales
and leasing transactions and businesses in general; (iii) a
prolonged and pronounced recession in real estate markets and
values; (iv) the unavailability of credit to finance real estate
transactions in general and the company's tenant-in-common
programs, in particular; (v) the success of current and new
investment programs; (vi) the success of new initiatives and
investments; (vii) the inability to attain expected levels of
revenue, performance, brand equity in general, and in the current
macroeconomic and credit environment, in particular; and (viii)
other factors described in the company's annual report on Form
10-K/A for the fiscal year ending December
31, 2009, Form 10-Q for the three-month periods ending
March 31, 2010 and June 30, 2010 and in other current reports on
Form 8-K filed with the Securities and Exchange Commission. The
company does not undertake any obligation to update forward-looking
statements.
Non-GAAP Financial Information
In addition to the results reported in accordance with U.S.
generally accepted accounting principles (GAAP) included within
this press release, Grubb & Ellis Company has provided certain
information, which includes non-GAAP financial measures. Such
information is reconciled to its closest GAAP measure in accordance
with the Securities and Exchange Commission rules and is included
in the attached supplemental data. Management believes that
these non-GAAP financial measures are useful to both management and
the company's stockholders in their analysis of the business and
operating performance of the company. Management also uses
this information for operational planning and decision-making
purposes. Non-GAAP financial measures are not and should not
be considered a substitute for any GAAP measures.
Additionally, non-GAAP financial measures as presented by
Grubb & Ellis Company may not be comparable to similarly titled
measures reported by other companies.
|
TABLES
FOLLOW
Grubb &
Ellis Company
|
|
|
Consolidated
Statements of Operations
|
|
|
(in
thousands)
|
|
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
REVENUE
|
|
|
|
|
|
|
|
|
|
Management
services
|
$
65,329
|
|
$
67,456
|
|
$
207,656
|
|
$
199,636
|
|
|
Transaction
services
|
59,907
|
|
46,321
|
|
156,824
|
|
118,793
|
|
|
Investment
management
|
11,303
|
|
14,829
|
|
29,971
|
|
43,912
|
|
|
Rental
related
|
7,744
|
|
7,499
|
|
23,043
|
|
22,754
|
|
|
TOTAL REVENUE
|
144,283
|
|
136,105
|
|
417,494
|
|
385,095
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSE
|
|
|
|
|
|
|
|
|
|
Compensation
costs
|
33,057
|
|
34,055
|
|
101,823
|
|
107,034
|
|
|
Transaction
commissions and related costs
|
43,607
|
|
31,575
|
|
116,531
|
|
85,360
|
|
|
Reimbursable
salaries, wages and benefits
|
48,562
|
|
50,709
|
|
152,905
|
|
149,678
|
|
|
Severance
and other charges
|
1,508
|
|
-
|
|
4,534
|
|
-
|
|
|
General and
administrative
|
18,215
|
|
18,674
|
|
55,458
|
|
60,534
|
|
|
Provision
for doubtful accounts
|
1,643
|
|
6,791
|
|
4,944
|
|
23,268
|
|
|
Depreciation
and amortization
|
3,610
|
|
3,504
|
|
10,238
|
|
8,368
|
|
|
Rental
related
|
5,459
|
|
4,961
|
|
16,244
|
|
16,159
|
|
|
Interest
|
2,985
|
|
3,741
|
|
8,033
|
|
12,490
|
|
|
Real estate
related impairments
|
750
|
|
2,393
|
|
2,573
|
|
16,615
|
|
|
Intangible
asset impairment
|
338
|
|
583
|
|
1,977
|
|
583
|
|
|
Total operating expense
|
159,734
|
|
156,986
|
|
475,260
|
|
480,089
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING LOSS
|
(15,451)
|
|
(20,881)
|
|
(57,766)
|
|
(94,994)
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME (EXPENSE)
|
|
|
|
|
|
|
|
|
|
Equity in
losses of unconsolidated entities
|
(479)
|
|
(224)
|
|
(1,085)
|
|
(1,635)
|
|
|
Interest
income
|
46
|
|
188
|
|
208
|
|
472
|
|
|
Other
income
|
717
|
|
272
|
|
479
|
|
394
|
|
|
Total other income (expense)
|
284
|
|
236
|
|
(398)
|
|
(769)
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations
before income tax provision
|
(15,167)
|
|
(20,645)
|
|
(58,164)
|
|
(95,763)
|
|
|
Income tax provision
|
(149)
|
|
(277)
|
|
(399)
|
|
(587)
|
|
|
Loss from continuing
operations
|
(15,316)
|
|
(20,922)
|
|
(58,563)
|
|
(96,350)
|
|
|
Loss from discontinued
operations
|
-
|
|
(535)
|
|
-
|
|
(1,005)
|
|
|
Net loss
|
(15,316)
|
|
(21,457)
|
|
(58,563)
|
|
(97,355)
|
|
|
Net loss attributable to
noncontrolling interests
|
(511)
|
|
(98)
|
|
(2,518)
|
|
(1,686)
|
|
|
Net loss attributable to Grubb
& Ellis Company
|
(14,805)
|
|
(21,359)
|
|
(56,045)
|
|
(95,669)
|
|
|
Preferred stock
dividends
|
(2,897)
|
|
-
|
|
(8,691)
|
|
-
|
|
|
Net loss attributable to Grubb
& Ellis Company common shareowners
|
$
(17,702)
|
|
$
(21,359)
|
|
$
(64,736)
|
|
$
(95,669)
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share -
basic:
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations
attributable to Grubb & Ellis Company common shareowners
|
$
(0.27)
|
|
$
(0.33)
|
|
$
(1.00)
|
|
$
(1.49)
|
|
|
Loss from discontinued
operations attributable to Grubb & Ellis Company common
shareowners
|
-
|
|
(0.01)
|
|
-
|
|
(0.02)
|
|
|
Net loss per share attributable
to Grubb & Ellis Company common shareowners
|
$
(0.27)
|
|
$
(0.34)
|
|
$
(1.00)
|
|
$
(1.51)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share -
diluted:
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations
attributable to Grubb & Ellis Company common shareowners
|
$
(0.27)
|
|
$
(0.33)
|
|
$
(1.00)
|
|
$
(1.49)
|
|
|
Loss from discontinued
operations attributable to Grubb & Ellis Company common
shareowners
|
-
|
|
(0.01)
|
|
-
|
|
(0.02)
|
|
|
Net loss per share attributable
to Grubb & Ellis Company common shareowners
|
$
(0.27)
|
|
$
(0.34)
|
|
$
(1.00)
|
|
$
(1.51)
|
|
|
|
|
|
|
|
|
|
|
Grubb &
Ellis Company
|
|
|
Consolidated
Balance Sheets
|
|
|
(in
thousands)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
2010
|
|
2009
|
|
|
ASSETS
|
|
|
Cash and cash
equivalents
|
$
19,557
|
|
$
39,101
|
|
|
Restricted cash
|
12,524
|
|
13,875
|
|
|
Investment in marketable
securities
|
2,711
|
|
690
|
|
|
Accounts receivable from related
parties - net
|
3,551
|
|
9,169
|
|
|
Notes and advances to related
parties - net
|
4,078
|
|
1,019
|
|
|
Service fees receivable -
net
|
31,255
|
|
30,293
|
|
|
Professional service contracts -
net
|
3,818
|
|
3,626
|
|
|
Real estate deposits and
pre-acquisition costs
|
809
|
|
1,321
|
|
|
Prepaid expenses and other
assets
|
14,549
|
|
21,489
|
|
|
TOTAL CURRENT
ASSETS
|
92,852
|
|
120,583
|
|
|
|
|
|
|
|
Accounts receivable from related
parties - net
|
15,583
|
|
15,609
|
|
|
Notes and advances to related
parties - net
|
16,320
|
|
14,607
|
|
|
Professional service contracts -
net
|
5,595
|
|
7,271
|
|
|
Investments in unconsolidated
entities
|
5,666
|
|
3,783
|
|
|
Properties held for investment -
net
|
81,959
|
|
82,189
|
|
|
Property, equipment and
leasehold improvements - net
|
10,958
|
|
13,190
|
|
|
Goodwill
|
1,264
|
|
-
|
|
|
Identified intangible assets -
net
|
91,275
|
|
94,952
|
|
|
Other assets - net
|
5,978
|
|
5,140
|
|
|
TOTAL ASSETS
|
$
327,450
|
|
$
357,324
|
|
|
|
|
|
|
|
LIABILITIES
AND SHAREOWNERS' (DEFICIT) EQUITY
|
|
|
Accounts payable and accrued
expenses
|
$
57,253
|
|
$
62,867
|
|
|
Due to related
parties
|
3,025
|
|
2,267
|
|
|
Capital lease
obligations
|
813
|
|
939
|
|
|
Other liabilities
|
31,715
|
|
38,864
|
|
|
TOTAL CURRENT
LIABILITIES
|
92,806
|
|
104,937
|
|
|
|
|
|
|
|
Senior notes
|
16,277
|
|
16,277
|
|
|
Convertible notes
|
30,054
|
|
-
|
|
|
Mortgage notes
|
107,000
|
|
107,000
|
|
|
Capital lease
obligations
|
135
|
|
755
|
|
|
Other long-term
liabilities
|
11,399
|
|
11,622
|
|
|
Deferred tax
liability
|
25,486
|
|
25,477
|
|
|
TOTAL
LIABILITIES
|
283,157
|
|
266,068
|
|
|
|
|
|
|
|
Preferred Stock - 12% cumulative
participating perpetual convertible
|
90,080
|
|
90,080
|
|
|
|
|
|
|
|
Common stock
|
694
|
|
654
|
|
|
Additional paid-in
capital
|
411,299
|
|
412,774
|
|
|
Accumulated deficit
|
(468,146)
|
|
(412,101)
|
|
|
Other comprehensive
income
|
193
|
|
-
|
|
|
Total Grubb & Ellis
Company shareowners' (deficit) equity
|
(55,960)
|
|
1,327
|
|
|
Noncontrolling
interests
|
10,173
|
|
(151)
|
|
|
TOTAL (DEFICIT)
EQUITY
|
(45,787)
|
|
1,176
|
|
|
TOTAL LIABILITIES AND
(DEFICIT) EQUITY
|
$
327,450
|
|
$
357,324
|
|
|
|
|
|
|
Grubb &
Ellis Company
|
|
|
|
|
|
|
Reconciliation of Net Loss to
Adjusted EBITDA
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
Net loss attributable to Grubb
& Ellis Company
|
$
(14,805)
|
|
$
(21,359)
|
|
$
(56,045)
|
|
$
(95,669)
|
|
|
Discontinued
operations
|
-
|
|
535
|
|
-
|
|
1,005
|
|
|
Interest expense
|
2,985
|
|
3,741
|
|
8,033
|
|
12,490
|
|
|
Interest income
|
(46)
|
|
(188)
|
|
(208)
|
|
(472)
|
|
|
Depreciation and
amortization
|
3,610
|
|
3,504
|
|
10,238
|
|
8,368
|
|
|
Intangible asset
impairment
|
338
|
|
583
|
|
1,977
|
|
583
|
|
|
Taxes
|
149
|
|
277
|
|
399
|
|
587
|
|
|
EBITDA (1)
|
(7,769)
|
|
(12,907)
|
|
(35,606)
|
|
(73,108)
|
|
|
|
|
|
|
|
|
|
|
|
Charges related to sponsored
programs
|
1,378
|
|
7,183
|
|
3,066
|
|
21,604
|
|
|
Real estate related
impairment
|
750
|
|
2,393
|
|
2,573
|
|
16,615
|
|
|
Stock based
compensation
|
1,629
|
|
2,552
|
|
7,427
|
|
8,733
|
|
|
Amortization of signing
bonuses
|
1,730
|
|
1,888
|
|
5,279
|
|
5,703
|
|
|
Severance and other
charges
|
1,508
|
|
-
|
|
4,534
|
|
-
|
|
|
Real estate
operations
|
(2,045)
|
|
(1,689)
|
|
(6,056)
|
|
(5,988)
|
|
|
Other
|
(441)
|
|
1,254
|
|
(903)
|
|
1,348
|
|
|
Adjusted EBITDA
(1)
|
$
(3,260)
|
|
$
674
|
|
$
(19,686)
|
|
$
(25,093)
|
|
|
|
|
|
|
|
|
|
|
|
(1) EBITDA represents earnings
before net interest expense, interest income, income taxes,
depreciation, amortization, discontinued operations and impairments
related to intangible assets. Management believes EBITDA is useful
in evaluating our performance compared to that of other companies
in our industry because the calculation of EBITDA generally
eliminates the effects of financing and
income taxes and the accounting effects of capital spending and
acquisition, which items may vary for different companies for
reasons unrelated to overall operating performance.
Management uses Adjusted EBITDA
as an internal management measure for evaluating performance and as
a significant component when measuring performance under employee
incentive programs. Management considers Adjusted EBITDA an
important supplemental measure of our performance and believes that
it is frequently used by securities analysts, investors and other
interested parties in the evaluation of companies in our industry,
some of which present Adjusted EBITDA when reporting their results.
Management also believes that Adjusted EBITDA is a useful tool for
measuring our ability to meet its future capital expenditures and
working capital requirements.
EBITDA and Adjusted EBITDA are
non-GAAP measures of performance. EBITDA and Adjusted EBITDA are
not substitutes for GAAP net income or cash flow and do not provide
a measure of our ability to fund future cash requirements. Other
companies may calculate EBITDA and Adjusted EBITDA differently than
we have and, therefore, EBITDA and Adjusted EBITDA have material
limitations as a comparative performance measure. Furthermore,
EBITDA and Adjusted EBITDA are not intended to be a measure of free
cash flow for management's discretionary use, as they do not
consider certain cash requirements such as tax and debt service
payments.
|
|
|
|
|
|
|
|
|
|
|
Grubb &
Ellis Company
|
|
|
|
|
|
|
Segment
Data
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
MANAGEMENT SERVICES
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
65,329
|
|
$
67,456
|
|
$
207,656
|
|
$
199,636
|
|
|
Compensation
costs
|
8,260
|
|
9,315
|
|
27,569
|
|
27,702
|
|
|
Transaction commissions
and related costs
|
3,625
|
|
2,192
|
|
14,020
|
|
7,346
|
|
|
Reimbursable salaries,
wages, and benefits
|
45,975
|
|
48,333
|
|
145,354
|
|
142,601
|
|
|
General and administrative
|
2,280
|
|
2,081
|
|
7,070
|
|
6,424
|
|
|
Provision for doubtful
accounts
|
482
|
|
276
|
|
1,271
|
|
1,619
|
|
|
Segment operating
income
|
4,707
|
|
5,259
|
|
12,372
|
|
13,944
|
|
|
|
|
|
|
|
|
|
|
|
TRANSACTION SERVICES
|
|
|
|
|
|
|
|
|
|
Revenue
|
59,907
|
|
46,321
|
|
156,824
|
|
118,793
|
|
|
Compensation
costs
|
13,094
|
|
11,216
|
|
35,270
|
|
32,986
|
|
|
Transaction commissions
and related costs
|
39,927
|
|
29,377
|
|
102,325
|
|
77,982
|
|
|
General and administrative
|
8,752
|
|
7,858
|
|
26,267
|
|
24,913
|
|
|
Provision for doubtful
accounts
|
145
|
|
(153)
|
|
1,173
|
|
546
|
|
|
Segment operating
loss
|
(2,011)
|
|
(1,977)
|
|
(8,211)
|
|
(17,634)
|
|
|
|
|
|
|
|
|
|
|
|
INVESTMENT MANAGEMENT
|
|
|
|
|
|
|
|
|
|
Revenue
|
11,303
|
|
14,829
|
|
29,971
|
|
43,912
|
|
|
Compensation
costs
|
5,400
|
|
6,235
|
|
16,643
|
|
20,919
|
|
|
Reimbursable salaries,
wages, and benefits
|
2,588
|
|
2,376
|
|
7,551
|
|
7,077
|
|
|
General and administrative
|
3,920
|
|
3,556
|
|
11,071
|
|
11,554
|
|
|
Provision for doubtful
accounts
|
795
|
|
6,694
|
|
1,501
|
|
21,039
|
|
|
Segment operating
loss
|
(1,400)
|
|
(4,032)
|
|
(6,795)
|
|
(16,677)
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION TO NET LOSS
ATTRIBUTABLE TO GRUBB & ELLIS COMPANY:
|
|
|
|
|
|
|
|
|
|
Total segment operating income
(loss)
|
1,296
|
|
(750)
|
|
(2,634)
|
|
(20,367)
|
|
|
Rental and other
operations, net of rental related and other expenses
|
2,142
|
|
2,497
|
|
5,599
|
|
6,012
|
|
|
Corporate overhead
(compensation, general and administrative costs)
|
(8,069)
|
|
(9,855)
|
|
(25,949)
|
|
(33,850)
|
|
|
Stock based
compensation
|
(1,629)
|
|
(2,552)
|
|
(7,427)
|
|
(8,733)
|
|
|
Severance and other
charges
|
(1,508)
|
|
-
|
|
(4,534)
|
|
-
|
|
|
Depreciation and
amortization
|
(3,610)
|
|
(3,504)
|
|
(10,238)
|
|
(8,368)
|
|
|
Interest
|
(2,985)
|
|
(3,741)
|
|
(8,033)
|
|
(12,490)
|
|
|
Real estate related
impairments
|
(750)
|
|
(2,393)
|
|
(2,573)
|
|
(16,615)
|
|
|
Intangible asset
impairment
|
(338)
|
|
(583)
|
|
(1,977)
|
|
(583)
|
|
|
Other income
(expense)
|
284
|
|
236
|
|
(398)
|
|
(769)
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations
before income tax provision
|
(15,167)
|
|
(20,645)
|
|
(58,164)
|
|
(95,763)
|
|
|
Income tax provision
|
(149)
|
|
(277)
|
|
(399)
|
|
(587)
|
|
|
Loss from continuing
operations
|
(15,316)
|
|
(20,922)
|
|
(58,563)
|
|
(96,350)
|
|
|
Loss from discontinued
operations
|
-
|
|
(535)
|
|
-
|
|
(1,005)
|
|
|
Net loss
|
(15,316)
|
|
(21,457)
|
|
(58,563)
|
|
(97,355)
|
|
|
Net loss attributable to
noncontrolling interests
|
(511)
|
|
(98)
|
|
(2,518)
|
|
(1,686)
|
|
|
Net loss attributable to Grubb
& Ellis Company
|
$
(14,805)
|
|
$
(21,359)
|
|
$
(56,045)
|
|
$
(95,669)
|
|
|
|
|
|
|
|
|
|
|
Grubb &
Ellis Company
|
|
|
|
|
|
|
Calculation
of Loss per Share
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
Numerator for loss per share -
basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing
operations
|
$
(15,316)
|
|
$
(20,922)
|
|
$
(58,563)
|
|
$
(96,350)
|
|
|
Less: Net loss
attributable to the noncontrolling interests
|
511
|
|
98
|
|
2,518
|
|
1,686
|
|
|
Less: Preferred
dividends
|
(2,897)
|
|
-
|
|
(8,691)
|
|
-
|
|
|
Loss from continuing operations
attributable to Grubb & Ellis Company common
shareowners
|
(17,702)
|
|
(20,824)
|
|
(64,736)
|
|
(94,664)
|
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued
operations attributable to Grubb & Ellis Company common
shareowners
|
-
|
|
(535)
|
|
-
|
|
(1,005)
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to Grubb
& Ellis Company common shareowners
|
$
(17,702)
|
|
$
(21,359)
|
|
$
(64,736)
|
|
$
(95,669)
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share -
basic:
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations
attributable to Grubb & Ellis Company common
shareowners
|
$
(0.27)
|
|
$
(0.33)
|
|
$
(1.00)
|
|
$
(1.49)
|
|
|
Loss from discontinued
operations attributable to Grubb & Ellis Company common
shareowners
|
-
|
|
(0.01)
|
|
-
|
|
(0.02)
|
|
|
Net loss per share attributable
to Grubb & Ellis Company common shareowners
|
$
(0.27)
|
|
$
(0.34)
|
|
$
(1.00)
|
|
$
(1.51)
|
|
|
Weighted average shares
outstanding - basic
|
64,860
|
|
63,628
|
|
64,624
|
|
63,618
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share - diluted
(a):
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations
attributable to Grubb & Ellis Company common
shareowners
|
$
(0.27)
|
|
$
(0.33)
|
|
$
(1.00)
|
|
$
(1.49)
|
|
|
Loss from discontinued
operations attributable to Grubb & Ellis Company common
shareowners
|
-
|
|
(0.01)
|
|
-
|
|
(0.02)
|
|
|
Net loss per share attributable
to Grubb & Ellis Company common shareowners
|
$
(0.27)
|
|
$
(0.34)
|
|
$
(1.00)
|
|
$
(1.51)
|
|
|
Weighted average shares
outstanding - diluted
|
64,860
|
|
63,628
|
|
64,624
|
|
63,618
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) For each of the periods
presented, fully diluted earnings per share, as computed in
accordance with Earnings Per Share Topic 260, produces an
anti-dilutive result. Therefore, the results for fully
diluted loss per share are the same as those for basic loss per
share.
|
|
|
|
|
|
|
|
|
|
SOURCE Grubb & Ellis Company