EX-99.2 3 a06-22997_2ex99d2.htm EX-99.2

EXHIBIT 99.2

 

Trammell Crow Company

Statements of Income

(in thousands, except share and per share data)

(UNAUDITED)

 

 

 

For the Nine Months

 

For the Three Months

 

 

 

Ended September 30,

 

Ended September 30,

 

 

 

2006

 

2005

 

2006

 

2005

 

 

 

(A)

 

(A)

 

 

 

(A)

 

Revenues:

 

 

 

 

 

 

 

 

 

User Services:

 

 

 

 

 

 

 

 

 

Facilities management

 

$

198,305

 

$

173,604

 

$

67,105

 

$

59,076

 

Corporate advisory services

 

155,241

 

114,287

 

57,584

 

49,498

 

Project management

 

101,595

 

85,503

 

38,133

 

28,216

 

 

 

455,141

 

373,394

 

162,822

 

136,790

 

Investor Services:

 

 

 

 

 

 

 

 

 

Property management

 

100,521

 

102,801

 

33,730

 

34,246

 

Brokerage

 

105,785

 

96,752

 

34,274

 

35,296

 

Construction management

 

9,144

 

8,381

 

3,134

 

3,207

 

 

 

215,450

 

207,934

 

71,138

 

72,749

 

 

 

 

 

 

 

 

 

 

 

Development and construction

 

31,551

 

24,168

 

13,130

 

9,223

 

Total Revenues

 

702,142

 

605,496

 

247,090

 

218,762

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

Salaries, wages and benefits

 

451,382

 

399,089

 

160,173

 

140,787

 

Commissions

 

119,907

 

98,790

 

43,705

 

41,834

 

General and administrative

 

118,586

 

100,763

 

39,301

 

35,736

 

Depreciation and amortization

 

8,419

 

6,870

 

3,500

 

2,335

 

Interest

 

6,405

 

3,270

 

2,976

 

1,320

 

Total Expenses

 

704,699

 

608,782

 

249,655

 

222,012

 

 

 

 

 

 

 

 

 

 

 

Gain on disposition of real estate

 

19,370

 

9,759

 

16,132

 

7,285

 

Operating income

 

16,813

 

6,473

 

13,567

 

4,035

 

Interest and other income

 

3,710

 

2,073

 

1,765

 

672

 

Income from continuing operations before income taxes, minority interest and income from investments in unconsolidated subsidiaries

 

20,523

 

8,546

 

15,332

 

4,707

 

Income tax expense

 

(7,714

)

(3,111

)

(5,667

)

(1,726

)

Minority interest, net of income taxes (B)

 

(256

)

1,321

 

(388

)

(1,930

)

Income from investments in unconsolidated subsidiaries, net of income taxes (B)

 

11,569

 

6,064

 

5,463

 

1,497

 

Income from continuing operations

 

24,122

 

12,820

 

14,740

 

2,548

 

Income from discontinued operations, net of income taxes (B)

 

3,207

 

12,014

 

1,133

 

11,969

 

Income before cumulative effect of a change in accounting principle

 

27,329

 

24,834

 

15,873

 

14,517

 

Cumulative effect of a change in accounting principle, net of income taxes (B)

 

1,011

 

—

 

—

 

—

 

Net income

 

$

28,340

 

$

24,834

 

$

15,873

 

$

14,517

 

 

 

 

 

 

 

 

 

 

 

Diluted income per share:

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.65

 

$

0.35

 

$

0.40

 

$

0.07

 

Income from discontinued operations

 

0.09

 

0.33

 

0.03

 

0.33

 

Cumulative effect of a change in accounting principle

 

0.03

 

—

 

—

 

—

 

Net income

 

$

0.77

 

$

0.68

 

$

0.43

 

$

0.40

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

36,778,640

 

36,292,969

 

36,668,451

 

36,679,610

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

28,340

 

$

24,834

 

$

15,873

 

$

14,517

 

Depreciation and amortization (C)

 

9,445

 

7,975

 

3,794

 

2,609

 

Interest(D)

 

7,564

 

5,672

 

3,486

 

1,992

 

Income tax expense

 

17,144

 

14,218

 

9,067

 

8,397

 

EBITDA (E)

 

$

62,493

 

$

52,699

 

$

32,220

 

$

27,515

 

 

(A) In accordance with the discontinued operations provisions of FAS 144, certain revenues and expenses for the six months ended June 30, 2006, and for the three and nine months ended September 30, 2005, have been reclassified to conform to the presentation for the three months ended September 30, 2006. These reclassifications did not have any impact on net income or EBITDA.

(B) Income tax expense has been calculated using an effective tax rate applicable to these line items.

(C) Includes depreciation and amortization related to discontinued operations of $294  and $1,026  for the three and nine months ended September 30, 2006, respectively, and $274 and $1,105 for the three and nine months ended September 30, 2005, respectively.

(D) Includes interest related to discontinued operations of $510 and $1,159 for the three and nine months ended September  30, 2006, respectively, and $672 and $2,402 for the three and nine months ended September 30, 2005, respectively.

(E) EBITDA represents earnings before interest, income taxes and depreciation and amortization. The Company believes that EBITDA is a meaningful measure of the Company’s operating performance, cash generation and ability to service debt. However, EBITDA should not be considered as an alternative to: (1) net earnings (determined in accordance with accounting principles generally accepted in the United States (“GAAP”)); (2) operating cash flow (determined in accordance with GAAP); or (3) liquidity. The Company also believes that EBITDA is sometimes useful to compare the operating results of companies within an industry due to the fact that it eliminates the effects of certain financing and accounting decisions. The Company’s calculation of EBITDA may, however, differ from similarly titled items reported by other companies.