Q2 2020 Colliers International Group Inc Earnings Call
Today's call is being recorded.
Legal counsel requires us to advise that discussion scheduled to take place today may contain forward looking statements that involve known and unknown risks and uncertainties.
Actual results may be materially different from any future, we thought performance or achievements contemplated import look and statement.
Additional information concerning factors that could cause actual results to materially differ from those into forward. Looking statements is contained in the Companys annual information form myself with the Canadian Securities administrator.
In the company's annual report on form 40 form 40 F as filed with the U.S. Securities and Exchange Commission.
As a reminder, today's call is being recorded today, It's August six 2020.
At this time for opening remarks introductions I would like to turn the call over to the global Chairman and Chief Executive Officer Mr. Jay Hennick. Please go ahead Sir.
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Morning.
Thanks for joining.
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Right.
Good.
The company.
John Fredrickson cheap.
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This call.
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Section of our website.
Thanks.
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Oh.
This morning.
Better than expected second quarter results across segments and regions of our company.
Yes.
Primarily in our transactional.
In local currency for the quarter revenues.
Yeah.
25%.
$60 million, 30%.
Adjusted earnings per share came in at 70 cents down 36%.
Due to the prior year.
On a year to date basis revenue.
One.
Down 13%.
EBITDA was 114 million down 11% and earnings per share.
25.
22% versus the prior year.
Based on our results.
Stronger than expected in first half.
Sessions already completed.
Increasing.
Expectations for the balance.
In a few minutes Christian.
On our financial results liquidity and balance sheet as well as our updated assumptions.
Uh huh.
Some operational.
After which we'll open things up two questions.
Since March most markets around the world.
Morning.
We're staying at home Warner impacting everyone.
I'm proud of how Colliers leadership respond then taking aggressive action early to contain costs and realign resources, well encouraging our professionals to provide important advice and insights weren't clients.
Fortunately our efforts to transform colliers into a different kind of professional services company has paid off handsomely.
Adding more recurring in contractual revenue streams like investment management property and project management mortgage servicing and real property consulting and engineering has provided us with more resilience and service line diversification than ever before changing the dying.
Mix of our global platform for the future.
Recurring services now represent the majority of our revenues and earnings with a balance coming from our highly variable transaction business leasing and capital markets.
During the quarter industry estimates indicate transaction volumes were down almost 70% in the U.S. deal count down about 50% in Europe and transaction volumes down almost 40% in Asia Pac.
Colliers of course delivered much better than the rest turning the corner showing great momentum and picking up market share in the same way as we did frankly during the green financial crisis.
Make no mistake revenues from transaction services are not going away into green business. In fact, I suggest that leasing and capital markets are essential services to most owners and occupiers have real estate assets clients want and need our invites.
No more than ever to help them make better relisting decisions as they navigate uncertain times.
Although revenues in this area, maybe down temporarily I'm confident they will rebound nicely as business begins to return to normal.
During the quarter, we completed 230 million dollar offering of convertible notes have further fortify our balance sheet.
These notes are convertible into shares at the option of the holder, but also at the option of Colliers essentially there are additional equity in our company.
We finished the quarter with leverage at 1.5 times, providing us with significant unused capacity to continue to take advantage of opportunities going forward.
On the transaction front, we continue to obtain important steps during the quarter. We completed the acquisition of Doherty financial now read that branded as colliers mortgage, giving us a well established in real estate debt finance and loan servicing platform upon which to build.
Then shortly after the quarter end, we added mazer consulting leading us engineering design and consulting firm focused on real estate and infrastructure assets.
Both of these additions to provide further growth opportunities and resilient revenue streams and both bring strong leadership teams, who will continue to drive their businesses under our unique partnership philosophy.
I would like to welcome our new partners into the Colliers family. The senior leadership team at Colliers mortgage led by David You ran and those of Mazer consulting led by Richard Mazer, Kevin Haiti and Leone funds.
Now I'd like to say a word about the valuation of our shares.
As you know our leadership team has a proven record of creating value for shareholders delivering more than 20% compound annual growth in share value over the past 25 years.
This record suggest we know what thing or to above businesses and how they are valued and how their leverage.
I look at the trading value call your shares and institutionally recognized global professional services company with significant growth opportunities and the majority of Thats revenues and earnings coming from resilient revenue streams.
I see huge value under appreciated.
From an investment perspective, Colliers has historically traded significantly below properties on professional services companies, despite having superior characteristics.
Sooner or later in the market will wake up to this and begin to value our company in line with the value creating.
That's why our leadership team on so much of the equity in our company almost 40% and Thats why we continue to invest as we did during the quarter by purchasing almost 10% of our recent offering.
No one has more skin in the game.
Looking forward there continues to be a lot of uncertainty out there and as a result, we continue to manage our business closely as enterprising owners would.
However.
Ever may happen in the coming months all of us at Colliers remain confident that are highly diversified business model resilient core recurring revenues strong balance sheet entrepreneurial culture significant insider ownership will enable us to emerge.
From these unprecedented times stronger and better than ever.
Let me now turn things over to Christian for his comments Christian.
Thank you Jay.
As announced earlier today colors reported better than anticipated financial results across all service lines and regions for the second quarter. My comments, followed the flow slides posted on the Investor Relations section of Colliers Dot com to accompany this call.
Please note that non-GAAP measures such as such as adjusted EBITDA and adjusted EPS referenced on this call are defined press release issued today.
Estimates are composed primarily of noncash charges that we view it largely unrelated to our operating results.
All references to revenue growth are calculated based on local currency.
Second quarter revenues were 550 million down 25% relative to the prior year.
Internal revenues were down 26% do the impact to the cobot 19 pandemic, primarily on our transactional leasing and capital markets operations throughout the quarter.
Second quarter consolidated adjusted EBITDA was 60 million compared to 87 million last year with margins at 10.9% versus 11.7% in the prior year quarter.
Margins in each region were impacted by reduced revenues or mitigated by aggressive measures to contain costs, including discretionary support and administrative costs as well as compensation.
I would like to take this opportunity to thank our teams around the world for their tireless efforts and managing their businesses closely during this unprecedented time.
Q2 revenues in the Americas totaled 309 million down 26%.
Americas outsourcing and advisory revenues were flat with each of project management property management and valuations holding stable.
Leasing and capital markets revenues were down 45%, 24%, respectively with leasing more heavily impacted as occupiers of office space, particularly in urban markets deferred decisions on future lease commitments.
Adjusted EBITDA was 24 million down 33% versus last year.
EMEA Q2 revenues were 100 million down 32% for the region.
Leasing was down 42%.
Capital markets down 40%.
Dosing advisory was down 23% all impacted by the pandemic.
Most of the reduction in terms of advice and advisory and the region.
And from our turnkey project management business, which experienced delays in executing onsite work as several jobs things rent accessible.
Adjusted EBITDA for the region was 6 million compared to 11 million last year.
Asia Pacific revenues were 100 million down 16% as the pandemic spread to most markets in the region during the second quarter.
Leasing was down 48%, while capital markets was down 25%.
Partially offset by a small increase in outsourcing and advisory revenues, which included revenues from the recent acquisition of synergy never branded as call leaders in India.
Adjusted EBITDA was 12 million compared to 14 million last year.
Investment management revenues for Q2 were 41 million down 12%.
Pass through carried interest revenue attributable to prior owners declined by 4.3, plus 4.3 million.
And comprise the majority of the revenue declined.
Assets under management were 35.7 billion.
Thirtyth 2020.
Up 2% from 35.1 billion as at March 30, Onest 2020, with underlying asset value and funds under management remaining stable.
This validates Harrison Street demographic investment strategy, which focuses on lower volatility asset classes like student and senior housing medical office storage and social infrastructure.
Adjusted EBITDA for the quarter was 17 million versus $19 million at the comparative period with the margin impacted by the timing of certain European transaction fees.
Our operating cash flow for the second quarter, excluding activity related to our accounts receivable facility was 43 million.
Up from 31 million in the prior year quarter.
Operating cash flow was favorably impacted by a reduction in working capital in the business primarily accounts receivable.
It also from tax payment deferral programs in some geographic regions.
Both of these factors were attributable to the pandemic.
Colliers maintains a conservative financial profile with a net debt to adjusted EBITDA leverage ratio of 1.5 times as of June Thirtyth 2020.
During the quarter, we completed an offering a five year, 4% convertible notes for net proceeds of 224 million.
No, it's our convertible into subordinate voting shares over the next five years or if not converted maybe settled at maturity and subordinate voting shares or cash at the option colliers as such the convertible notes or equity like in nature, and they're considered equity for purposes of our financial leverage.
Yes.
The full extent and duration of the pandemic remains uncertain. However, as Jay mentioned, we have updated our working assumptions for the balance of the year to reflect one better than anticipated results for the second quarter across all service lines and regions and too.
The recent acquisitions colliers mortgage and major consulting.
The updated revenue range for 2020 full year in that 10% to 20% decline relative to 2019.
The updated adjusted EBITDA range at 15% to 25% decline relative to 2019.
Looking forward, we expect to transactional leasing and capital markets revenues, which both have highly variable cost structures to remain below 2019 levels. Although the scale of decline should moderate in the third and fourth quarters.
Investment management and outsourcing and advisory revenues are expected to remain relatively stable through the remainder of the year with some local variability depending on local market conditions.
That concludes my prepared remarks.
Now I'd like to turn the call over to John.
Thank you Chris.
It also say that measures mandated by governments around the world to continue to covert 19 pandemics costs. These declines in most business business activities across the global economy.
As a global business and we'd be player commercial real estate and investment management Colliers is for clients first finding ways to assist during these times of uncertainty.
We are confident at the time attention value delivered today will be rewarded by our clients in the future with a current level of uncertainty significantly reduces and decision, making with longer term time horizons resumes.
Across our global business and our business leaders professionals and supports that did an exemplary job adjusting to the significant change in operating conditions tough measures were taken to contain costs, while striving to ensure business continuity and providing services to clients under challenging Sir.
Circumstances.
Prior investments in technology allowed us to transition from in person to remote work and a near seamless fashion.
Facilitating ongoing communication and collaboration with each other and our clients. Some of these changes, including a reduction of drought are expected to be permanent in nature, while others, such as working from home.
Necessitated by the lock down measures will be substantially reduce those offices are reopened and re populated.
As we transition back to business as usual, we will continue to closely monitor our costs gear, our variable expense levels through our revenue generating activities.
And our last quarterly conference call I referred to the count was silver linings to this crisis at Colliers would benefit from a year comp.
Moving the opportunity to reset certain elements of our cost structure, our capabilities you strategically invest for the future.
One example of this was our 10 million dollar broker Roadies program implemented in our U.S. operations to financially assists. Many of our commission only brokerage professionals, we've been negatively impacted by the sharp reduction in term transaction activities.
Caused by the end.
Through our knowledge Golars is the only major firm in our industry.
Right. So if your pro rata something it was incredibly well received by our us transaction professionals and another way, which colliers continues to pick culture and the value of its people first.
In addition, corridors continues to strategically invest in talents across our global platform and take advantage of opportunities to close gaps and build capabilities by attracting leaders, who professionals caught up and bureaucratic organizations that have sites will have their entrepreneurs.
Spirit.
Well all of those are the recently joined Colliers and those looking for home, where the entrepreneurial spirit is alive and well welcome to call iOS.
Well cost management continues to be an operational priority across our businesses other areas of focus during the integration of colors mortgage indura us brokerage operations and other relevant service lines. So that we can begin the process of leveraging our relationships.
Across multifamily properties and drive value to our clients in brokerage constructions cross for us platform.
Looking beyond the current crisis and post pandemic economy, we expect to sharp decline, we've just experienced and leasing transactions across our global markets largely related to deferred decision, making by occupiers to reverse driving a recovery in activity, which from an.
Operational perspective, we intend to maximize by leveraging these investments in talent.
That concludes they were prepared remarks, and I would now like turn the call back through our operator to facilitate questions.
Thank you.
Ladies and gentlemen, as a reminder to ask the question you would need to press Star then one when your telephone.
To withdraw your question Chris the penalty.
Again that star one to asked the question.
Please standby without the Q and a roster.
First question comes from the line of Stephen Sheldon with William Blair. Your line is open.
Thanks. Good morning, really appreciate you continue to give guidance here.
It seems like relative to some of your large peers do you have a slightly more optimistic outlook on transaction activity stabilizing over the near term so anything to call out there in terms of what you're seeing on a forward indicator side given you some confidence about that stabilization.
Thats a stabilization activity over the next few quarters and how much of that is due to maybe market dynamics burstein somewhat thank you talked about strategic we hired somebody.
I would say Steven what are our view and our updated assumptions really are based on our ground up review of.
Expected transaction activity in our pipelines obviously.
We're going through that can size, we are risk adjust CV is.
These risks impacting the completion of transactions that are applied blindness remains elevated but we've taken that into account and I think it's a reflection really of our global business and the types of clients that we service, but we.
Or optimistically have a level of optimistic confidence for the balance of the year.
Really at this stage I would.
Suggests as this is not due to the selective hiring that we've done I think that has in the past activity related to those steps is obviously deferred.
And there's usually a bit of a lag between the date of hiring somebody on their contributions were operations, but we're confident that that will play out well given.
Who we've been successful in hiring more than 2021 2022, but our outlook is certainly been some the very grassroots ground up level review of our pipelines.
Got it makes sense.
Just a quick follow up in EMEA will be outsourcing and advisory business.
Just some discrete projects headwinds from I guess in person restrictions what visibility do you have in those projects ramping up in the second lapping has there been any change added client retention. So part of this year in that business.
Steven we'd expect to that those transactions.
I would get back on track and they are in some cases back back on track.
Transactions that were in process and.
Needed to be a.
Worked onto completion.
So we feel that that revenue will be there in the back half of the year.
Aside from any second wave or any other kind of major issue on the from health and safety perspective.
But we do expect those revenues would be there and client retention.
He has been sound.
In our sourcing advisory.
Business and this year in EMEA and as well as globally.
Yes. Those are those are active projects that were currently working on so it's a subject of.
Getting back in the building to do the work some buildings have access in France. Some buildings don't have access and so as they opened up our activities will resume that as Christian said, we think the current projects will will ramp up towards.
The balance of the year.
Great. Thank you.
Thank you.
Our next question comes from the line of George Dimmit Scotiabank. Your line is open.
Yes, hi, guys congrats on a resilient quarter.
The Julie.
Sorry, I just wanted to ask you want to follow up question on the Americas, Obviously I think the deferred.
Decisions on the leasing quite a bit of an impact I think that were down 50% on that revenue line year over year, just wondering how much of that needs to come back.
For us to kind of.
Attained the goalposts that we put out can you maybe give us a sense of where that number is trending how much of it needs to come back.
I guess breast to be to be able to get our guidance.
George as as I indicated.
And my comments.
No.
Leasing went down significantly and the Americas and we do expect in terms of our Q3 and four.
There will be a gradual improvement and in in leasing and capital markets in Q3 and four.
Okay.
Gradual it'll be.
A little bit.
There is there is.
Okay, so heightened uncertainty.
And the market and.
Overall basis, we set the goalpost fairly wide share in terms of our working assumption.
And but but I think some improvement.
Something that we expect.
But the degree is unknown an uncertain at this point.
But within that that range that we said.
Okay, I didn't really see anything prepared remarks, but can you guys, maybe give us an update on the 150 million of cost savings just wondering how much of that so far has been reinvested into the brokerage business.
Yes, George we've realized about 60 million out about 150 million that we targeted.
In Q2.
And that is I think a testament to our teams and the ability to be nimble and.
Make those tough decisions quickly and we.
We experienced a benefit of those.
Cost savings throughout the quarter.
Roll through through June.
By being a quick and nimble on those changes.
And I think we're well on track to achieving 150 million that we set out when we met last at the end of April on Q1 conference call.
Okay.
Just one last one if I may on I guess on general on the senior housing asset class. Just wondering your thoughts are on anything structural on terms that maybe value of asset classes over over the next couple of quarters agreed not to get the pandemic and.
Just on the U.M. side of the business.
The view there that we expect to grow.
In the mid single digits I think Thats. What are you guys kind of let's go puts you guys gave last quarter is that so.
The aim cook for the remainder of the year. Thanks.
Right.
So the seniors component of our investment management platform Harrison Street has has obviously been impacted somewhat.
By the pandemic.
But not materially so.
I think across the board they use the opportunity to enhance the value of the assets. There's a lot of it's an essential service. There's a lot of there'll be a delay in terms of having people move in for obvious reasons, but there's a waiting list.
So for us So I think we're very or Harrison Street is very comfortable with its seniors portfolio.
You know there first class they a first class operators so from that perspective.
Very good interestingly.
The in an environment, where fundraising has been pause.
Harrison Street continues to raise capital as you can see the the womens up during the month.
And that's.
So that was a positive sign and new new fundings are still on a pause although there's a lot of people looking at this alternative class because.
They are open ended fund just received top performance in across the board 135, and since inception, So best returns in the industry. So Harrison Street is.
Is doing extremely well and a relative to two other asset classes for sure and continues to perform.
Okay. Thanks reference good luck.
Thank you.
Our next question comes from Milan, Stephen Macleod, all with the ample capital your line is open.
Thank you good morning, guys.
Excellent.
I just wanted to circle around a little bit on the outsourcing and advisory business, which clearly was a it was a bright spot for the quarter in terms of resiliency.
Could you just give a little bit of color around.
What trends you saw what's in the various segments within outsourcing and advisory So from property management project management to evaluation of advisory.
Anything else that stood out.
Yes, all of them all of them performed extremely well.
Considering what was going on out there the limitations of getting onsite buildings for example.
Property management as Christian said was flat, but there was a number of projects that we manage that we couldn't get access to where we can get partial access to or are they wanted to reduce cost. So the support staff around to building were impacted and yet revenues in that sense.
We continue to be flat with the lab with the prior year. So additional services being provided compensated project management pipelines have been a strong as we've ever seen.
And they continue to perform.
Revenue wise was pretty much flat EBITDA up I'm, just giving you just giving you the magically sentiment.
Obviously into engineering as a new segment for us.
Operated very well again record pipelines.
So.
Across the board the only area and project management that was impacted more than the rest and on a project management business now is approaching $450 million globally is our business in India, and there's been an MD locked.
Sales in a number of cities, which has impacted their results pipelines are there projects are ongoing but they can't get access to.
Similar to project management at France, actually you can't get access to a building you can do work remotely but in many of these cases you need to be on site. So if theres restrictions there it really delays the execution of the job so really across the board and our.
And that segment of our business, we're very pleased with our results and.
There there resilient as you said, but they're also geographically diversified.
In the World, which which gives US great better project management, and Australia was strong project management in Asia was strong so.
Those are some of the some of the details.
Okay. That's helpful. Thank you.
And then when you look at the Asia Pacific market is there anything you can glean in terms of.
You know how that how that markets performed.
Out of the initial the initial shocks and covert 19, which which which preceded the rest of the world is there anything you can glean in terms of model for potential recovery or improvement in volumes and on the leasing in capital markets.
Well certainly can see based on our quarterly results that.
The reductions we saw in this quarter, we're not as significant needing specific reason largely because the we ended this thing first and then.
Emerge quicker.
Australia, New Zealand doing a particularly good job in terms of containment and yes. There is new auto spices returned but generally speaking business is much more further longer term the resumption back to normal so I think thats a good indicator right there in terms of our own our own results.
The down or the reduction in the quarter being much more muted in.
In that region.
Much like it was a little bit elevated in Europe, which obviously went into things a little bit sooner than North America Europe.
Okay, that's that's where I think thats it for me thanks very much.
Thank you soon.
Our next question comes from the line of met Logan with RBC capital markets. Your line is open.
Thank you and good morning.
Yeah.
Jay you talked a lot of go at some of the positive and market trends in the outsourcing and advisory segment.
If we roll those trends up.
Could we see adjusted EBITDA growing on a normalized basis for recurring services in 2020 wander 2022.
Well I don't want to get into trouble on that so I'm going to pass that to Christian.
Yes.
We do expect.
Our addressing businesses to be remained stable and resilient through the balance of the year and to return to.
Growth in the in the future so definitely an increase there.
We just recently closed on the too.
Acquisitions.
I'll start with Colliers mortgage.
Half of that business.
As a recurring.
Advisory.
Business in the loan servicing area.
We expect to grow that loan servicing book significantly over time, it's 11 billion today.
And we have plans to grow that materially.
Overtime as we as we integrate and grow.
Our originations dreams, and our servicing book and then finally, the major transaction that just closed.
In July.
As a engineering and consulting services business.
That.
Is a very recurring in nature long term contracts.
That business generates close to 200 million here in revenue.
We expect will grow significantly over time and add to our sourcing advisory revenue streams. So I think.
We have pretty.
Optimistic and then hi highly visible.
A path to to growing our attrition advisory business in the coming years. So as you looked at 2021, you've got both the internal growth a Christian talked about but also we we have already completed two significant acquisitions, which will provide acquisition growth on top of that so.
We are quite bullish about where that segment of our business goes in 2021 and beyond.
And I guess, when we take a step back Im in call. Your shares are trading well below what we would see as a fair multiples for the sum of departs from these businesses.
Would you ever consider leveraging your balance sheet for larger acquisition to solidify colliers has a recurring business or Conversely would you consider monetizing select pieces of the recurring business to capitalize on high valuations in the glass market.
Well it let's start with.
Everything's on the table.
40% of the equity where in the business of creating shareholder value. We always have it and as I said in my prepared comments I think where we're trading is.
Extremely low.
Relative to other property and professional service businesses out there.
We have very strong balance sheet, we have tremendous capacity to continue due to pursue growth opportunities as you can see over the past.
Two years or more three years, probably most of the activity has been around recurring revenue services, we like the mix of our business today, but.
We like.
Like.
We're going to have to take a look at shareholder value and and.
Many of the acquisition prices there for high quality businesses trade well in excess of where colliers a global platform.
Yes, so we're going to look at all of these factors.
Yes.
I guess, maybe taking a step back and changing gears a little bit.
You had mentioned there there could be new opportunities for further cost reductions within the business could you give us a little bit of color on what those might be and how they could impact margins over the next couple of years.
Yes, I mean.
Matt and then in the near term.
There are opportunities to take.
More support costs and and compensation cost primarily out of the business. That's something that we're looking at closely and continue to monitor closely and other has a lot of uncertainty still in the market.
And obviously for Q3 and four.
Operations, we have that lever available to us.
As John mentioned, you know, there's some more structural things that are changing and our cost structure.
I think our approach to our travel our long term approach to the level of support cost and administrative costs in the business.
And those are things that will evolve over time and will allow us to improve our margins.
Those transactional businesses.
Through those changes in approach to the way business is done and that is really one of the silver linings up this crisis.
And.
We'll see where that.
Margin enhancement takes us Peter over the next.
In coming quarters in years.
And last question for me just minor housekeeping item could you tell us your organic growth by region for the Americas, EMEA and Asia Pacific.
Yes.
Give me one segment.
Organic revenue growth the Americas for Q2 was minus 27%.
Asia minus 19.
In EMEA.
Down 32%.
That's great appreciate the color that's all from me ill turn it back thank you.
Thank you as a reminder, ladies and gentlemen, that's star one to ask the question.
Our next question comes from Atlanta, Frederic Bastien with Raymond James Your line is open.
Good morning, everyone on my first question is for John.
When you stepped into the newly created roll ups COO you indicated that you would spend a lot of time strengthening colliers occupiers services.
And do some work on corporate solutions and capital markets businesses as you've been able to get the ball rolling on this initiatives are where they put on hold in favor of other pressing matters.
Okay.
Excellent question.
Yes, I mean more the latter.
You know my in my full time and attention was going to the devoted to growth initiatives around global occupier services in a few other important growth initiatives for us, but as a result of what's transpired here would be a pandemic somewhere priorities change a bit but.
No means of I abandoned working closely with Scott Nelson and the rest of the global.
Fiber services team I mean, we had the same opportunity that we had previously it's just been delayed a little bit and we give us that we had a pretty ambitious plan to gear up and higher.
Bring on additional talent within that business.
So we've had its just kind of that back a little bit we're still doing.
We have been very successful to date and hiring some very high performing professionals were continuing to add those discussions we're going to be selective, but we're not turning that off but all I wanted to look better ways to use technology within that business has been we already have a markedly.
Colliers through 60 tool that many of our clients and others.
Using our very very interested is a differentiator within our industry and the lighter than in the trial.
Starting to see a little bit in that business, that's going to help dictate our pace of investment and we're now seeing a number of global mandates that were scheduled to be brought to market.
In terms of perspective opportunities for a business now surfacing.
So we're hopeful that will be successful on some of those going into the third quarter here and that I think will be also be an indicator as to whether or not we're able to accelerate our hiring processes around that business. So really excited about it but certainly what's the operating conditions were underwriting now.
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Causes to to read gear, a little bit and but notwithstanding that are long term perspective is this is an important area for colliers to grow we have the capabilities to do what there is a few gaps that we need to close we're going to do that.
Awesome, that's a that's great color.
Next question is for Jay.
Can you share with us.
The single largest lesson W.
Thank you taking away some of its pandemic.
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Well that's a good question.
The single largest lessen.
Is that culture.
Yes.
And.
The.
The fact that we I believe we are extremely well manage.
Theres a lot of people in this organization that have have been with us for many many years they understand the colliers way of operating they're very enterprising and entrepreneurial and that mattered big time, when we had to restructure our operations take costs.
Costs out of the business have detailed conversations with people all around the world.
Why all of these necessary steps needed to be taken in order to take our business to the next level and people responded beautifully.
And having that cohesion of a management team really makes a difference and I think is going to pay huge dividends for us going forward.
It's not easy to replicate a great culture and I mean at the end of the day and the people services business. It's all about the culture.
So that's great. Thanks, Thanks, My last question.
Christian I, sorry, I missed the.
Dollar amount of savings, you're able to cheat out of Europe hundred 50, Bandar targets.
Yeah, we've achieved 60 in Q2 and a full year target remains 150.
66 zero or five there.
Fixed narrow okay.
Thank you very much guys.
Hey, Rob Thanks for.
Thank you.
I'm showing no further questions I would now like to turn the call back over to Jay Hennick for closing remarks.
Thank you very much operator, and thanks, everyone for joining us today, and we look forward.
To the.
Next quarter conference call to see how our transactional services do but as Christian says, we're cautiously optimistic though they'll have some gradual improvement the rest of our business, we're very comfortable with where theyre going to be.
Thank you for joining us and we'll speak soon.
Ladies and gentlemen. This concludes today's conference call. Thank you for your participation you may now disconnect everyone have a wonderful day.
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