EX-99.1 2 a53410exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
(GRUBB & ELLIS LOGO)
     
 
   Grubb & Ellis Company
 
   1551 N. Tustin Avenue, Suite 200
 
   Santa Ana, CA 92705
 
    
 
   714.667.8252 main
news release
   714.667.6860 fax
for immediate release
   www.grubb-ellis.com
     
Contact:
   Janice McDill
Phone:
   312.698.6707
Email:
   janice.mcdill@grubb-ellis.com
Grubb & Ellis Company Reports 2009 Second Quarter Results
SANTA ANA, Calif. (Aug. 6, 2009) — Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today reported revenue of $124.6 million for the second quarter of 2009, compared with second quarter 2008 revenue of $158.4 million. The company reported first-half 2009 revenue of $244.8 million, compared with revenue of $310.7 million for the comparable 2008 period.
The net loss attributable to the company for the second quarter of 2009 was $32.8 million, or $0.52 per share, compared with a net loss of $5.4 million, or $0.08 per share, in the same period a year ago. For the first six months of 2009, the company reported a net loss of $74.3 million, or $1.17 per share, compared with a net loss of $11.7 million, or $0.18 per share, in the first six months of 2008.
Second Quarter Highlights
  •   Completed the disposition of Danbury Corporate Center for $72.4 million. Net proceeds from the sale were applied against the company’s revolving credit facility.
 
  •   Recruited 13 senior-level brokerage sales professionals during the quarter, bringing to 68 the number of top brokerage sales professionals who have joined in the past 12 months.
 
  •   Won three significant Corporate Services portfolio assignments.
 
  •   Awarded 20 new property and facilities management assignments during second quarter totaling 4 million square feet of property.
 
  •   Ranked by Robert A. Stanger & Co. as the No. 2 public non-traded REIT sponsor based on equity investment sales for the second quarter, with $208.7 million in total equity raised during the three-month period. The company was ranked as the No. 1 sponsor of public non-traded REITs based on equity investments sales for the first six months of the year with $406.5 million in total equity raised during the period.
 
  •   Announced the formation of Energy & Infrastructure Advisors, a joint venture with Meridian Companies that intends to sponsor retail and institutional investment products focused on opportunities in the energy and infrastructure sector.
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2 — 2 — 2
08/06/09
Grubb & Ellis Company Reports 2009 Second Quarter Results
Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) for the second quarter of 2009 was negative $9.3 million, compared with positive adjusted EBITDA of $12.5 million in the same period a year ago. The 2009 second-quarter adjusted EBITDA results excluded the following charges:
  •   $9.7 million related to the company’s investment management programs,
 
  •   $2.0 million in real estate-related impairments, and
 
  •   $5.1 million of stock-based compensation and amortization of signing bonuses.
For the first six months of 2009, the company reported adjusted EBITDA of negative $25.8 million, compared with positive adjusted EBITDA of $20.0 million in the same period a year ago. The first-half 2009 adjusted EBITDA results excluded the following charges:
  •   $14.4 million related to the company’s investment management programs,
 
  •   $12.2 million in real estate-related impairments, and
 
  •   $10.0 million of stock-based compensation and amortization of signing bonuses.
The adjusted EBITDA charges are detailed in the Reconciliation of Net Loss to Adjusted EBITDA in the tables following this release.
“The current environment is clearly impacting our 2009 results. Our focus continues to be on serving the needs of our clients and making the right investments to position the company to take advantage of the upswing in the commercial real estate market when it occurs,” said Gary H. Hunt, interim chief executive officer.
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 captive management and third party property management and facilities outsourcing services, along with business services fees. Management Services revenue was $66.6 million for the second quarter of 2009, up 10 percent from $60.6 million in the same period a year ago. First-half 2009 Management Services revenue was $132.2 million, an 8 percent increase from revenue of $122.4 million during the same period a year ago.
During the second quarter of 2009, Grubb & Ellis was awarded 20 new management assignments, 75 percent of which came from existing clients.
At June 30, 2009, the company managed approximately 241.8 million square feet of commercial real estate and multi-housing property, including 46.9 million square feet of Grubb & Ellis Realty Investors’ captive property portfolio.
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Grubb & Ellis Company
1551 N. Tustin Avenue, Suite 200       Santa Ana, CA 92705       714.667.8252 main

 

 

3 — 3 — 3
08/06/09
Grubb & Ellis Company Reports 2009 Second Quarter Results
Transaction Services
Transaction Services revenue for the second quarter of 2009, including brokerage commission, valuation and consulting revenue, was $38.9 million, compared with $56.5 million in the same period a year ago. The segment generated revenue of $72.5 million during the first half of 2009, down 37 percent from revenue of $115.7 million in the same period in 2008. The business continues to be impacted by the current economic environment, specifically the contracting job market and stalled investment sales market. For the first six months of 2009, the company’s leasing revenue decreased by 21 percent, while investment sales revenue declined by 69 percent, compared with the same period in 2008. This compares with an industry wide decline of 33 percent and 78 percent, year-over-year, in leasing and investment sales, respectively, according to industry statistics as well as the company’s analysis.
Investment Management
Investment Management revenue for the second quarter of 2009, which includes transaction fees, captive management fees and dealer-manager fees, totaled $13.4 million, compared with fees of $35.0 million in the same period a year ago. For the first six months of 2009, Investment Management revenue was $29.1 million, compared with $60.4 million in the same period a year earlier. The decreases in both the current quarter and year-to-date revenue can be attributed to the current market environment, which has significantly slowed investment sales activity. The year-over-year decreases in acquisition, loan and disposition fees generated by the company’s investment programs were 90 percent and 95 percent during the second quarter and six month periods, respectively.
During the first half of 2009, approximately $421 million in equity was raised for the company’s investment programs, compared with $516 million in the first six months of 2008. This decrease was due primarily to a decrease in capital raised for tenant-in-common and private client wealth management programs, which was offset, in part, by the large amount of capital raised for the public non-traded REITs sponsored by the company. Grubb & Ellis ranked among the top sponsors in the public non-traded REIT sector during each of the first six months of 2009, according to published industry reports. The company’s market share was 12.7 percent for the first half of 2009, up from 4.0 percent a year earlier. At June 30, 2009, the value of the company’s assets under management was $6.9 billion, up from $6.8 billion at March 31, 2009.
Rental-Related Operations
Rental-related revenue and rental-related expense includes pass-through revenue and expenses for master lease accommodations related to the company’s tenant-in-common programs. Rental-related revenue and rental-related expense also includes results from one property held for investment.
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Grubb & Ellis Company
1551 N. Tustin Avenue, Suite 200       Santa Ana, CA 92705       714.667.8252 main

 

 

4 — 4 — 4
08/06/09
Grubb & Ellis Company Reports 2009 Second Quarter Results
Conference Call & Webcast
The company will host an earnings conference call to review its 2009 second quarter results on Thursday, August 6, at 10:30 a.m. Eastern Time. A live webcast will be accessible through the Investor Relations section of the company’s Web site at http://www.grubb-ellis.com. The direct dial-in number for the conference call is 1.866.362.4820 for domestic callers and 1.617.597.5345 for international callers. The conference call ID number is 53084194. An audio replay will be available beginning at 1:30 p.m. ET on Thursday, August 6, until 7 p.m. ET on Thursday, August 13 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 52057155. In addition, the conference call audio will be archived on the company’s Web site following the call.
About Grubb & Ellis
Named to The Global Outsourcing 100™ in 2009 by the International Association of Outsourcing Professionals™, 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 130 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 Grubb & Ellis Realty Investors, 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), tenant-in-common (TIC) investments suitable for tax-deferred 1031 exchanges 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 regarding, among other things, the ability of future revenue growth, market trends, new business opportunities and investment programs, certain combined financial information regarding Grubb & Ellis Company and NNN Realty Advisors, new hires, results of operations, changes in expense levels and profitability and effects on the company of changes in the real estate markets. These statements involve known and unknown risks, uncertainties and other factors that may cause the company’s actual results and performance in future periods to be materially different from any future results or performance suggested by these statements. Such factors which could adversely affect the company’s ability to obtain these results include, among other things: (i) a continued or further slowdown in the volume and the decline in transaction values of sales and leasing transactions; (ii) the general economic downturn and recessionary pressures on 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 reduction in borrowing capacity under the company’s current credit facility, and the additional limitations with respect thereto; (vi) the company’s continuing ability to make interest and principal payments with respect to its credit facility; (vii) the ability of the company to return to compliance with the NYSE’s continued listing standards; (viii) an increase in expenses related to new initiatives, investments in people, technology and service improvements; (ix) the success of current and new investment programs; (x) the success of new initiatives and investments; (xi) the inability to attain expected levels of revenue, performance, brand equity and expense synergies resulting from the merger of Grubb & Ellis Company and NNN Realty Advisors in general, and in the current macroeconomic and credit environment, in particular and (xii) other factors described in the company’s annual report on Form 10-K for the fiscal year ending December 31, 2008, Form 10-Q for the three-month period ended March 31, 2009 and in other current reports on Form 8-K filed with the Securities and Exchange Commission (the “SEC”). The company does not undertake any obligation to update forward-looking statements.
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Grubb & Ellis Company
1551 N. Tustin Avenue, Suite 200       Santa Ana, CA 92705       714.667.8252 main

 

 

5 — 5 — 5
08/06/09
Grubb & Ellis Company Reports 2009 Second Quarter Results
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
1551 N. Tustin Avenue, Suite 200       Santa Ana, CA 92705       714.667.8252 main

 

 

Grubb & Ellis Company
Consolidated Statements of Operations
(in thousands)
(Unaudited)
                                 
    Three Months Ended     Six Months Ended  
    June 30,     June 30,     June 30,     June 30,  
    2009     2008     2009     2008  
REVENUE
                                
Management services
   $ 66,649     $ 60,620     $ 132,180     $ 122,376  
Transaction services
     38,939       56,541       72,472       115,689  
Investment management
     13,426       34,988       29,083       60,364  
Rental related
     5,555       6,279       11,097       12,266  
 
                        
TOTAL REVENUE
     124,569       158,428       244,832       310,695  
 
                        
 
                                
OPERATING EXPENSE
                                
Compensation costs
     34,946       39,994       72,979       76,811  
Transaction commissions and related costs
     28,011       38,429       53,786       78,793  
Reimbursable salaries, wages, and benefits
     49,505       44,127       98,968       89,119  
General and administrative (1)
     31,141       22,424       58,359       44,129  
Depreciation and amortization
     2,423       4,315       4,864       7,160  
Rental related
     4,734       4,382       9,347       9,108  
Interest
     4,521       2,300       7,566       5,052  
Merger related costs
     —       4,691       —       7,560  
Real estate related impairments
     1,950       —       12,155       —  
 
                        
Total operating expense
     157,231       160,662       318,024       317,732  
 
                        
 
                                
OPERATING LOSS
     (32,662 )     (2,234 )     (73,192 )     (7,037 )
 
                        
 
                                
OTHER INCOME (EXPENSE)
                                
Equity in (losses) earnings of unconsolidated entities
     (180 )     762       (1,411 )     (4,743 )
Interest income
     139       218       284       523  
Other income (expense)
     847       (2,773 )     122       (3,293 )
 
                        
Total other income (expense)
     806       (1,793 )     (1,005 )     (7,513 )
 
                        
 
                                
Loss from continuing operations before income tax (provision) benefit
     (31,856 )     (4,027 )     (74,197 )     (14,550 )
Income tax (provision) benefit
     (304 )     2,568       (671 )     6,940  
 
                        
Loss from continuing operations
     (32,160 )     (1,459 )     (74,868 )     (7,610 )
Loss from discontinued operations
     (458 )     (3,779 )     (1,030 )     (3,922 )
 
                        
Net loss
   $ (32,618 )   $ (5,238 )   $ (75,898 )   $ (11,532 )
 
                        
Less: Net income (loss) attributable to the noncontrolling interests
     190       142       (1,588 )     146  
 
                        
Net loss attributable to Grubb & Ellis Company
   $ (32,808 )   $ (5,380 )   $ (74,310 )   $ (11,678 )
 
                        
 
                                
Earnings per share — basic and diluted:
                                
Loss from continuing operations attributable to Grubb & Ellis Company
   $ (0.51 )   $ (0.02 )   $ (1.15 )   $ (0.12 )
Loss from discontinued operations attributable to Grubb & Ellis Company
     (0.01 )     (0.06 )     (0.02 )     (0.06 )
 
                        
Net loss per share
   $ (0.52 )   $ (0.08 )   $ (1.17 )   $ (0.18 )
 
                        
Weighted average shares outstanding, basic and diluted
     63,587       63,600       63,557       63,561  
 
                        
 
                                
Amounts attributable to Grubb & Ellis Company shareholders:
                                
Loss from continuing operations, net of tax
   $ (32,350 )   $ (1,601 )   $ (73,280 )   $ (7,756 )
Loss from discontinued operations, net of tax
     (458 )     (3,779 )     (1,030 )     (3,922 )
 
                        
Net loss
   $ (32,808 )   $ (5,380 )   $ (74,310 )   $ (11,678 )
 
                        
 
(1)   General and administrative expense includes $11.1 million and $234,000 in bad debt expense for the three months ended June 30, 2009 and 2008, respectively, and $16.5 million and $893,000 in bad debt expense for the six months ended June 30, 2009 and 2008, respectively.

1

 

Grubb & Ellis Company
Consolidated Balance Sheets
(in thousands)
(Unaudited)
                 
    June 30,     December 31,  
    2009     2008  
ASSETS
                
Cash and cash equivalents
   $ 14,843     $ 32,985  
Restricted cash
     17,794       36,047  
Investment in marketable securities
     1,014       1,510  
Current portion of accounts receivable from related parties — net
     10,788       22,630  
Current portion of advances to related parties — net
     1,866       2,982  
Note receivable from related party — net
     9,100       9,100  
Services fees receivable — net
     17,672       26,987  
Current portion of professional service contract — net
     2,975       4,326  
Real estate deposits and preacquisition costs
     3,394       5,961  
Properties held for sale including investments in unconsolidated real estate — net
     58,660       116,155  
Identified intangible assets and other assets held for sale — net
     9,437       29,971  
Prepaid expenses and other current assets
     13,807       22,873  
 
            
TOTAL CURRENT ASSETS
     161,350       311,527  
 
                
Accounts receivable from related parties — net
     15,072       11,072  
Advances to related parties — net
     8,307       11,499  
Professional service contracts — net
     10,170       10,320  
Investments in unconsolidated entities
     4,547       8,733  
Properties held for investment — net
     46,585       51,252  
Property, equipment and leasehold improvements — net
     15,136       14,009  
Identified intangible assets — net
     94,960       97,317  
Other assets — net
     4,706       4,548  
 
            
TOTAL ASSETS
   $ 360,833     $ 520,277  
 
            
 
                
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
Accounts payable and accrued expenses
   $ 57,323     $ 70,222  
Due to related parties
     3,211       2,447  
Current portion of line of credit
     65,853       63,000  
Current portion of notes payable and capital lease obligations
     1,026       333  
Notes payable of properties held for sale
     68,613       145,959  
Liabilities of properties held for sale — net
     7,485       16,056  
Other liabilities
     40,130       36,549  
Deferred tax liability
     4,007       2,080  
 
            
TOTAL CURRENT LIABILITIES
     247,648       336,646  
 
                
Senior notes
     16,277       16,277  
Notes payable and capital lease obligations
     71,185       70,203  
Other long-term liabilities
     6,630       6,077  
Deferred tax liability
     15,372       17,298  
 
            
TOTAL LIABILITIES
     357,112       446,501  
 
                
Common stock
     653       654  
Additional paid-in capital
     409,431       402,780  
Accumulated deficit
     (407,573 )     (333,263 )
Other comprehensive loss
     (135 )     —  
 
            
Total Grubb & Ellis Company stockholders’ equity
     2,376       70,171  
Noncontrolling interests
     1,345       3,605  
 
            
TOTAL EQUITY
     3,721       73,776  
 
            
TOTAL LIABILITIES & EQUITY
   $ 360,833     $ 520,277  
 
            

2

 

Grubb & Ellis Company
Reconciliation of Net Loss to Adjusted EBITDA
(in thousands)
(Unaudited)
                                 
    Three Months Ended     Six Months Ended  
    June 30,     June 30,     June 30,     June 30,  
    2009     2008     2009     2008  
Net loss attributable to Grubb & Ellis Company
   $ (32,808 )   $ (5,380 )   $ (74,310 )   $ (11,678 )
Discontinued operations
     458       3,779       1,030       3,922  
Interest expense
     4,521       2,300       7,566       5,052  
Interest income
     (139 )     (218 )     (284 )     (523 )
Depreciation and amortization
     2,423       4,315       4,864       7,160  
Taxes
     304       (2,568 )     671       (6,940 )
 
                        
EBITDA (1)
     (25,241 )     2,228       (60,463 )     (3,007 )
 
                                
Charges related to sponsored programs
     9,744       —       14,421       —  
Real estate related impairment
     1,950       —       12,155       —  
Write off of investment in Grubb & Ellis Realty Advisors, net
     —       —       —       5,828  
Stock based compensation
     3,217       3,150       6,181       5,634  
Amortization of signing bonuses
     1,862       1,906       3,815       3,744  
Loss on marketable securities
     —       1,524       —       1,614  
Merger related costs
     —       4,691       —       7,560  
Amortization of contract rights
     —       563       —       986  
Real estate operations
     (915 )     (1,394 )     (1,971 )     (2,303 )
Other
     94       (123 )     94       (76 )
 
                        
Adjusted EBITDA (1)
   $ (9,289 )   $ 12,545     $ (25,768 )   $ 19,980  
 
                        
 
(1)   EBITDA represents earnings before net interest expense, interest income, realized gains or losses on sales of marketable securities, income taxes, depreciation, amortization, discontinued operations and impairments related to goodwill and 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. As a result, management uses EBITDA as an operating measure to evaluate the operating performance of the Company’s various business lines and for other discretionary purposes, including as a significant component when measuring performance under employee incentive programs.
 
    However, EBITDA is not a recognized measurement under U.S. generally accepted accounting principles, or GAAP, and when analyzing the Company’s operating performance, readers should use EBITDA in addition to, and not as an alternative for, net income as determined in accordance with GAAP. Because not all companies use identical calculations, our presentation of EBITDA may not be comparable to similarly titled measures of other companies. Furthermore, EBITDA is not intended to be a measure of free cash flow for management’s discretionary use, as it does not consider certain cash requirements such as tax and debt service payments. The amounts shown for EBITDA also differ from the amounts calculated under similarly titled definitions in the Company’s debt instruments, which are further adjusted to reflect certain other cash and non-cash charges and are used to determine compliance with financial covenants and the Company’s ability to engage in certain activities, such as incurring additional debt and making certain restricted payments.

3

 

Grubb & Ellis Company
Supplemental Data
(in thousands except for properties acquired/disposed)
(Unaudited)
                                 
    Three Months Ended     Six Months Ended  
    June 30, 2009     June 30, 2008     June 30, 2009     June 30, 2008  
Investment management revenue:
                                
Acquisition and loan fees
   $ 815     $ 13,741     $ 3,033     $ 24,268  
Property and asset management fees
     8,516       10,078       16,977       18,522  
Disposition fees (excluding amortization of intangible contract rights)
     —       4,370       —       5,113  
Amortization of intangible contract rights
     —       (563 )     —       (986 )
Other
     4,095       7,362       9,073       13,447  
 
                        
Total investment management revenue
   $ 13,426     $ 34,988     $ 29,083     $ 60,364  
 
                        
 
                                
Investment management data:
                                
Total properties acquired
     2       21       5       40  
Total aggregate purchase price
   $ 41,125     $ 487,756     $ 77,504     $ 836,682  
 
                                
Total properties disposed
     2       5       5       7  
Total aggregate sales value at disposition
   $ 77,500     $ 143,350     $ 92,134     $ 179,425  
 
                                
Total square feet under management
     46,879       45,402       46,879       45,402  
 
                                
Assets under management (1)
   $ 6,851,884     $ 6,507,080     $ 6,851,884     $ 6,507,080  
 
                                
Equity raise:
                                
Non-traded real estate investment trust (2)
   $ 208,686     $ 138,665     $ 406,521     $ 212,844  
Tenant-in-common
     2,175       54,617       12,491       106,726  
Private client accounts
     —       51,073       —       188,439  
Other
     42       7,521       2,002       7,521  
 
                        
Total equity raise
   $ 210,903     $ 251,876     $ 421,014     $ 515,530  
 
                        
 
(1)   The value of assets under management is based on the original acquisition price of such assets.
 
(2)   Excludes capital raised through the dividend reinvestment program which totaled $9.9 million and $18.1 million for the three and six months ended June 30, 2009, respectively, and $2.6 million and $5.9 million for the three and six months ended June 30, 2008.

4

 

Grubb & Ellis Company
Segment Data
(in thousands )
(Unaudited)
                                 
    Management     Transaction     Investment        
Three Months Ended June 30, 2009   Services     Services     Management     Total  
Revenue
   $ 66,649     $ 38,939     $ 13,426     $ 119,014  
Compensation costs
     8,779       10,180       6,869       25,828  
Transaction commissions and related costs
     2,244       25,749       —       27,993  
Reimbursable salaries, wages, and benefits
     46,975       —       2,530       49,505  
General and administrative
     2,823       8,663       13,651       25,137  
 
                        
Segment operating income (loss)
   $ 5,828     $ (5,653 )   $ (9,624 )   $ (9,449 )
 
                        
                                 
    Management     Transaction     Investment        
Three Months Ended June 30, 2008   Services     Services     Management     Total  
Revenue
   $ 60,620     $ 56,541     $ 34,988     $ 152,149  
Compensation costs
     9,171       12,425       7,238       28,834  
Transaction commissions and related costs
     3,292       35,137       —       38,429  
Reimbursable salaries, wages, and benefits
     42,346       —       1,781       44,127  
General and administrative
     1,940       8,978       5,529       16,447  
 
                        
Segment operating income
   $ 3,871     $ 1     $ 20,440     $ 24,312  
 
                        
                                 
    Management     Transaction     Investment        
Six Months Ended June 30, 2009   Services     Services     Management     Total  
Revenue
   $ 132,180     $ 72,472     $ 29,083     $ 233,735  
Compensation costs
     18,387       21,769       14,684       54,840  
Transaction commissions and related costs
     5,155       48,606       —       53,761  
Reimbursable salaries, wages, and benefits
     94,268       —       4,701       98,969  
General and administrative
     5,686       17,755       22,343       45,784  
 
                        
Segment operating income (loss)
   $ 8,684     $ (15,658 )   $ (12,645 )   $ (19,619 )
 
                        
                                 
    Management     Transaction     Investment        
Six Months Ended June 30, 2008   Services     Services     Management     Total  
Revenue
   $ 122,376     $ 115,689     $ 60,364     $ 298,429  
Compensation costs
     18,395       24,726       14,324       57,445  
Transaction commissions and related costs
     6,459       72,334       —       78,793  
Reimbursable salaries, wages, and benefits
     86,693       —       2,426       89,119  
General and administrative
     4,288       18,543       9,422       32,253  
 
                        
Segment operating income
   $ 6,541     $ 86     $ 34,192     $ 40,819  
 
                        
                                 
    Three Months     Three Months     Six Months Ended     Six Months Ended  
    Ended June 30,     Ended June 30,     June 30,     June 30,  
    2009     2008     2009     2008  
Reconciliation to consolidated net loss:
                                
Total segment operating (loss) income
   $ (9,449 )   $ 24,312       (19,619 )   $ 40,819  
Non-segment:
                                
Rental Operations, net of rental related expenses
     821       1,897       1,750       3,158  
Corporate overhead (compensation, general and administrative costs)
     (15,140 )     (17,137 )     (30,738 )     (31,242 )
Other operating expenses
     (8,894 )     (11,306 )     (24,585 )     (19,772 )
Other income (expense)
     806       (1,793 )     (1,005 )     (7,513 )
Loss (income) attributable to noncontrolling interest
     (190 )     (142 )     1,588       (146 )
Income tax (provision) benefit
     (304 )     2,568       (671 )     6,940  
Loss from discontinued operations
     (458 )     (3,779 )     (1,030 )     (3,922 )
 
                        
Net loss
   $ (32,808 )   $ (5,380 )     (74,310 )   $ (11,678 )
 
                        

5