Welcome to the First Quarter Year-End Investors Conference Call. Today's call is being recorded. Legal counsel requires us to advise that the 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 results, performance or achievements contemplated in the forward-looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the Company's annual information form as filed with the Canadian Securities Administrators and in the Company's Annual Report on Form 40-F as filed with the U.S. Securities and Exchange Commission. As a reminder, today's call is being recorded. Today is Tuesday, May 1, 2018. And at this time, for opening remarks and introductions, I would like to turn the call over to the Chairman and Chief Executive Officer, Mr. Jay Hennick. Please go ahead, sir.

Thank you, operator, and good morning, everyone and thanks for joining us for today's first quarter conference call. As the operator mentioned, I'm Jay Hennick, Chairman and Chief Executive Officer and with me today is John Friedrichsen, our Chief Financial Officer. This conference call is being webcast and is available on our Investor Relations section of our website. And a presentation slide deck is also available to accompanying the call. Earlier today, Colliers' reported very strong first quarter results with balanced revenue growth of internally and from acquisitions, revenues were $552 million, up 18%, EBITDA was $36 million, up 16% and earnings per share came in at $0.45, up 25% over the prior year. Revenue pipelines continue to indicate sustained activity across all of our service lines with generally stables to positive market conditions in most of our major markets around the world. John will have more to say about these and our other financial results in just a few minutes. With our operating momentum to date a total of five acquisitions completed already this year and the growth opportunities we continue to see we have every reason to expect 2018 to be another very successful year for Colliers. Just in April we expanded our revolving credit facility to $1 billion improving our pricing and extending the term until 2023 providing us with additional capacity to grow our business. As you know our current five-year growth plan is to double the size of our Company by the year 2020. We're now in the third-year of our plan and I'm pleased to say that we're on track. If our plan is successful as it has been in the past we expect is to translate into significant incremental value for our shareholders. And given the amount of equity our leadership team and directors hold in Colliers more than any of our peers by a country mile. We have every incentive to create value for our shareholders for many years to come. Now, let me turn things over to John for his review of the financial results. Then we'll open things up to questions. John?

Thank you, Jay. As announced in our press release earlier this morning, and Jay in his opening remarks, Colliers International were reported strong consolidated financial results for our first quarter, with solid contributions from most of our operations across our global platform, highlighting the benefit of our service line and geographic diversification. I will address our overall consolidated financial results for the quarter, our operating results by reporting region as well as our capital usage and financial position. Please note that both our first quarter 2018 and compared to the first quarter 2017 results reflected option of the new revenue recognition standards on a U.S. GAAP. On our first quarter of fiscal 2018 consolidated revenues increased $552 million, up 14% of local currencies from $466 million in the first quarter of 2017, a 6% of our growth generated internally and the balance from acquisitions. Total revenue growth for the quarter in our U.S. dollar reporting currency was 18%. Adjusted EBITDA for the quarter totaled of $36.1 million, up from $31.3 million in Q1 of last year, an increase of 14% of local currency, 16% in U.S. dollars, with our margin coming in at 6.5% comparable to 6.7% report last year. And adjusted earnings per share came in at $0.45 compared to $0.36 per share reported for the first quarter of last year, up 25% in U.S. dollars, with $0.01 favorable impact from FX on adjusted earnings per share in the quarter. Our adjustments to GAAP EPS and arriving on adjusted EPS are outlined in our press release issued this morning and are composed primarily of non-cash charges that we view as largely unrelated with our operating results and are consistent with those presented historically. Turning to our operating results, I will now provide a review by major service line and…

[Operator Instructions] Your first question comes from the line of Stephen Sheldon of William Blair.

Hey, good morning. Thanks for taking my questions.

Good morning.

I guess first here, can you talk some about expectations in EMEA over the remainder of the year? You saw modest decline in the first quarter, but it also sounds like there were some timing issues. So can you provide some more detail on those issues? And does the push out of some activity in the solid pipeline, with that, could EMEA be an above average grower, I guess, over the remainder of the year?

Yes, I mean couple of things impacting EMEA, in terms of overall growth and performance. A little bit lower level of transaction-related revenues. But as I indicated in my prepared comments, pipelines are strong across most markets, particularly the major markets in Europe. So we expect to see a reversal, certainly going into the next quarter. Beyond that, every indication is that stable to up support of the growth in that region. We also continue to invest in Europe, in particular around additional professional staff, which came on board late last year and earlier this year and has impacted our cost. We expect revenue related to that investment to start occurring in the back half of the year. So overall, we feel very good about where Europe is, notwithstanding a little bit of slower start in the year.

Okay, very helpful. And then I wanted to ask about growth within your multinational client base and maybe how conversation for there are going? Are those conversations getting progressively easier as you continue to scale your business? And can grow there become, I guess even more important overall growth driver over the next few years?

Absolutely, I mean I think that this is somewhat of an incremental, but in other ways, and exponential outcome of what we have been building within Colliers over the last several years. I mean it's still relatively early days, certainly compared to many of our competitors, around our capabilities, around our corporate services offerings. And we've gained significant momentum, have captured some significant business with major multinationals around the world, and we're going to continue to pursue that. And we believe that we're really well positioned to execute in virtually every major market around the world. So I think we are a compelling alternative to companies that, I think historically, have been used to dealing with only a couple of providers.

Yes. Just to augment that, we see a big opportunity for us, with the point that John made near the end. This business was primarily dominated by one or two players on a global basis and then some regional players therefore the first time in the past two years. We've been invited for the party many times and have been very successful winning some very important mandates. We don't really announce those mandates as some of our peers do. But if you follow the growth in that segment of the business, you'll see that a lot of that growth is coming from winning business that are - that's global in nature and of the highest quality. So we're quite excited about it. And it gives us an opportunity to offer something different than the others.

Okay. And then I guess last one from me. Within the Sales Brokerage business in the Americas, you put up good growth in the quarter. Did you see any delays or timing shifts, particularly in kind of larger transactions closing in the U.S?

Nothing, Stephen, of note. I mean it would be the usual you get the odd transaction that you expect to close in the quarter and one of the reasons circumstances arise that gets pushed into the quarter. But nothing that I would - worthy of commenting on, in our case.

Got it. All right. Thanks.

Your next question comes from the line of Stephen MacLeod of BMO. Your line is open.

Thank you. Good morning, guys.

Good morning, Steve.

Good morning.

Good morning. I just wanted to follow-up on the Americas. Obviously, some very good growth in Sales and Lease Brokerage as well as advisory is pretty broad-based. And in terms of the operating leverage, Americas has had sort of a lower margin base. Would you expect that, through the year, you would continue to see ongoing incremental operating leverage in the Americas?

Absolutely. I mean, it something that we are focused on. And as we have continued to build, it's been part of our, I guess, longer-term story, particularly around our U.S. operation. We're getting incremental gains in Canada, which does operate at a higher-margin business. And the outcomes in the U.S. around our continued investment and building of scale is going to pay off, is paying off. And we expect that to continue for the balance of this year and right through the 2020 plan that Jay referenced earlier on.

Okay. That's great. And do you have any - is that predicated on significant investment in new hires over the next several years? Or do you feel that you have a pretty good plan in place to build off of?

Well, we - a key part of our strategy is to hug our A players and to continue to recruit market for market. Recruiting is, in fact, a small percentage of our movement on an annual basis. We've been very selective, as you've seen, in terms of the recruiting around gaps that we might have in a different - in any particular geographic region. So if we want to build up our capital markets in Chicago, we'll focus specifically on capital markets in Chicago. And so we've been very specific about recruiting. The other area that we have spent a lot of time on, and we think is going to pay off in heavy dividends over the years, is on our senior leadership teams on all levels, particularly in the United States. Because as you know, Stephen, we have - we've worked very hard at bringing together that platform, streamlining, trying to build leverage wherever we can, our revenues have gone through the roof. The accelerated growth in that business has been really exceptional. But with that exceptional growth, you need better leadership, stronger leadership, leadership for the future, and we've made some significant hires, many of whom we've announced, some of whom we have not because they happen to be in smaller, not major markets. But based on the momentum that we have and the culture that we have at Colliers, we've been a very attractive place for the most professional advisors and the business leaders that want to make a difference in growing the business. So we're very excited about the new additions. But as I remind everybody here, the most important thing is to hug our key people every single day, because they've been with us and continue to grow their own practices and deserved our support as well.

Right. Okay. That's great. Thank you. And then just finally, in Asia Pacific, you've talked a little bit about Japan. And I know Japan was a negative contributor in 2017. I think for 2018, you were expecting it to be a positive contributor. Can you just talk a little bit about how that market is going and how your recent investment in that market is evolving?

Yes. I mean Japan was a new story for us in 2017. It actually was a small positive contributor. We'd expected it to be a bit of a drag, but it was actually a small positive contributor to the year. But we have continued to focus on building it organically. And it's really through headcount and attracting people that want to be part of, I think, a new story in Japan. As we've talked about, I think, on the previous call, the fourth quarter call, it is a big opportunity for us, one that we're going to pursue vigorously through trying to attract top-notch professionals that can join our business. Acquisitions are always an option, but that may not be until a little bit later. So it's a key component of our Asia strategy. And I think you're not really seeing much of an impact of that operation in our results. The results, really in Asia, for us in the first quarter, were due in large part to the hard work that David Hamm and his team have done over the last two to three years, and it's really a rebirth for Colliers as we've been there for a long time. We've got a lot of great new people that have now generated a lot of momentum. And with a small - very small, but interesting acquisition recently, we think that there's a new era for our Asian business, and we're excited about it. And that does include Japan.

Okay. That's great color. Thank you very much.

Your next question comes from the line of Frederic Bastien of Raymond James. Your line is open.

Thanks and good morning. You already invested more than $100 million in M&A so far this year. Now, I know you can't time acquisitions, but how are you feeling about the rest of the year? Do you think you can meet or perhaps even exceed what you've achieved already this year?

Well, I don't know about that. But I mean, I'm cautiously optimistic. Last year was a record year in acquisitions for us, so I'm cautiously optimistic we'll do better than last year in acquisitions. We had a great start to the year, and we have some interesting opportunities in the pipeline. But as you know they're always - there's always issues. They're strategic, sometimes they happen, sometimes it's too early for the target. There's all kinds of reasons why an acquisition might or might not be completed. But we do have a nice pipeline, and we're hoping to, at least, do as well as we did last year.

It certainly seems that with the - I guess, the beginning of the year you've had in terms of organic growth and what you're seeing right now, what you've already accomplished on the M&A front, you should be able to exceed the EBITDA growth that you achieved in 2017.

We are surely budgeting that. That's for sure.

All right. Awesome. That's all I have. Thank you.

Thanks.

Your next question comes from the line of Marc Riddick of Sidoti. Your line is open.

Hi, good morning.

Good morning, Marc.

Hey, Marc.

I wanted to maybe follow-up a little bit on the acquisition type question. I was curious whether you could sort of give us a sense of - granted there's always different type of things going on but I wanted to get a general sense of maybe what bid-ask spreads look like vis-à-vis a year or so ago? And maybe if you can give - maybe a little greater color as to if there's any differences as to some of the things that are driving what you're seeing in the pipeline, is it any different than what you've seen historically? Thanks.

We've talked about this on previous calls. I think that the bid-ask spreads for, I'd say, third-party companies, not companies that are part of Colliers, which is a little higher than it has been historically. But we try and compensate for that in many ways because it allows us, given a variety of factors, it allows us to perhaps build an earn out structure that might be a year longer than we would otherwise expect. And for that, we're prepared to pay a quarter point - a quarter turn of EBITDA higher on average or something like that. So we have been - and as you can see, most of the acquisitions now have been more significant in size. So there's a lot of people that you're bringing over at one given time. And so having a claw back over a longer period of time gives us lots of downside protection around the acquisitions that we complete. So in a long way, I would say, yes. There is a push up in expected value. We do try and compensate in deal structure. But I would also say that, more often this year than last year and in subsequent years. The targets want to be part of Colliers. They're coming to us because they need to be part of a global platform. They're coming to us because they believe they want to be in an entrepreneurial environment, where we focus on adding value to clients rather than building infrastructure and bureaucracy and things like that. So our business is conducive to entrepreneurial environment. So we have been finding that the targets are more keen to join us today than ever before. And it just seems to have gotten easier and easier over the past three years. So all of that to say, we've got lots of room to grow here.

Okay, excellent. And then one last follow-up for me, you talked about earlier being able to compete for wider-ranging and deeper assignments. I was wondering if you could touch a little bit on where you feel you are, I know we've seen some of the announcements made with the additions of leadership and the commentary earlier in the call about additional personnel. One things at a sense specifically around those type opportunities where you didn't have broader and deeper relationships, how you feel about your current level of staffing to take advantage, specifically of those type of opportunities and where you may need to go vis-a-vis maybe where you would like to be? Thank you.

Well, if you're talking about our corporate solutions business in particular, I would say that if you're asking where do we stand versus CB and Jones Lang. We are well behind them. They've been around 100 years, both of them, and they've been in the business 100 years. And so we're the Johnny- come-lately at 20-odd-years of trying. But I would say that, again our momentum is picking up. Our growth, percentage growth in that segment of our business is above the highest of any other - internal is above the highest of any other segment in our business. And obviously, when you win that business, these are big contracts and they are global contracts and there's multiple services to be provided all over the place. So and the segment itself is growing. So there's good - there's a greater push to outsourcing today than there was five years ago. So it's a big part of our business. Candidly, we could really dedicate more time, effort and energy into that segment of our business if we wanted. And it's something that we would like to do. But there's only so much growth you can take on at any given time. You don't want to screw up the relationship, the new relationship that you've formed with a major corporate. So it's - once you win one of these mandates, is the good news is you celebrate for five minutes and the bad news is it's 1.5 years of implementation. And so that implementation has to be done flawlessly or as flawlessly as possible and it takes a lot of people, it takes a lot of time. And frankly, in the first year or 1.5 years, it's probably not profitable for us. I'm looking at John, it isn't profitable for us. And so we're trying to take - more of a two-step time approach on that and it's been successful for us, and we see it as an opportunity. So we're going to continue to pursue that. But we're going to do it cautiously.

Okay. Thank you very much and I really appreciate the color on it. Thank you.

And your final question comes from the line of Michael Smith of RBC. Your line is open.

Thank you and good morning. I just wanted to touch up on - touch on Europe. So your investments in Europe, I take it they started a couple of quarters ago and they're ongoing as of Q1. Can you just remind us of how that flows through the revenue stream? I mean you've got some, I guess, expenses that burn off after a period of time and then the revenue starts kicking in?

Yes, I mean, it's really around people and taking on headcount that - where we've made the financial commitments to help transition people from where they previously were. There's always a ramp up period and as there are cost associated with that and we're happy to provide, I guess, effectively, a make hold to the individuals that decide to come on board. So we're paying some staff and related compensation costs and not really seeing any revenue being generated currently. Certainly, pipelines are building and opportunities being pursued and secured. But we're not likely to see the positive impact of the revenue generation from that till the back half of this year.

Okay. And just switching gears, Jay, can you just highlight some of the reasons or get into some more specifics of why a lot of these smaller shops want to join a global platform? Particularly, for sales and leasing?

It's actually very basic, because a successful professional works with a client and as the client matures, the client wants to do business, not just in his home market or her home market, in markets in different parts of the country or North America or around the world, and you need fulfillment to execute on those transactions. And the client itself who has built a relationship with our advisor, wants our advisor to ensure that there is a streamlined of consistent approach to looking for leased locations or asset purchases in different geographic regions. So what we find is, the smaller firms, even if the smaller firm wants to stay smaller, the professionals that want to enhance their practice have to be at one of the global firms in order to be able to deliver on all the things I just said. So there's more sophisticated transactions, the size of the transactions are - and velocity are bigger and much more lucrative. So ultimately, the best advisors need to be at a global firm. Not to mention all of the other resources and differentiators that, that large firm can bring to the party. And they're different, whether they join one of our peers or ours.

Okay. Thank you. That was helpful. And just lastly, just on Asia, I mean you've talked about Japan, but you had a very big quarter in Asia. I wonder if you could give us just a little bit more granularity on it?

Michael, it's John. It's something we've talked about I guess for the last couple of years. I mean first of all, we made a pretty significant leadership change there about 2.5 years ago. And our original CEO has in turn brought in some senior people both in Hong Kong and in China in particular, and that has generated a fairly significant amount of additional business for us. So it's a work in progress. And we previously had noted that when we were generating results there that we're not in line with where we expected those results to be longer term, so we're seeing some of the positive outcomes around that. Market conditions, I think, in those regions have been supportive of activity, and we're taking advantage of that.

And David Hands himself, who is the leader of our Asia business is very - got a culture very similar to us. He's very entrepreneurial, he's aggressive. He's the one that initiated the activity in Japan. This is - this was something, as many of you now know, was a 2-year process to make Japan a company-owned operation. He's got his fingers all over the growth in China. Hong Kong has never seen better results. And I think David deserves a lot of credit for bringing the entrepreneurial flare to a market that has not historically been entrepreneurial. So we hope for more. They did their first acquisition this year…

First quarter.

Yes, within the first quarter or just after. It's a project management business, that's Shanghai Beijing, Chengdu and a little bit in Hong Kong, although there's no people in Hong Kong. And so it's a great tuck under for David. The business - our business in China never did project management. It was a business that was owned by a British group. And we had done lots of business together over many years and when they decided that it was time for a change. We were the natural buyer. It's not a significant business. It's circa $12 million in revenue U.S. dollars in revenue, but that's fee revenue, so they managed a large projects, but get paid as a landlord rep on those projects. So as you know, we have similar operations in Canada, the U.S, Australia, New Zealand in project management. So it's a good first edition for David. And obviously, we see lots of future opportunity in Asia in the years to come. But again, we're going to take a one-step-at-a-time approach, and hopefully, have a much bigger business there in the years to come.

Great, thank you. That's it for me.

There are no further questions in the queue.

Okay, thank you very much, ladies and gentlemen, for joining us on the conference call, and we hope to speak to you again soon. I guess next conference call at the end of July. Okay, thanks again. Have a good day.