Cushman & Wakefield Ltd. · NYSE:CWK
Cushman & Wakefield — Q3 2023 Earnings Presentation
19 slides from Cushman & Wakefield's earnings presentation, Oct 30, 2023
Slide 1: Q3 2023 Earnings Presentation
Q3 2023 EARNINGS PRESENTATION OCTOBER 30, 2023 CUSHMAN & WAKEFIELD /1
Slide 2: Cautionary Note on Forward Looking Statements
Cautionary Note on Forward Looking Statements All statements in this presentation other than historical facts are forward-looking statements, which rely on a number of estimates, projections and assumptions concerning future events. Such statements are also subject to a number of uncertainties and f
Slide 3: Non-GAAP Financial Measures and other Financial Information
Non-GAAP Financial Measures and other Financial Information We have used the following measures, which are considered “non-GAAP financial measures” under SEC guidelines: i. Segment operating expenses and Fee-based operating expenses; ii. Adjusted earnings before interest, taxes, depreciation and amo
Slide 4: Third Quarter 2023 Business Update
Third Quarter 2023 Business Update(1) › Q3’23 fee revenue of $1.6 billion, down 11% versus Q3’22 ‒ PM/FM fee revenue down 1% versus prior year(2) ‒ Leasing and Capital Markets fee revenue declined 16% and 33%, respectively ‒ Valuation & Other fee revenue declined 18% › Q3’23 Adjusted EBITDA of $150
Slide 5: Financial Overview
FINANCIAL OVERVIEW
Slide 6: Third Quarter Highlights
Third Quarter Highlights Three Months Ended % Change USD $m, except September 30, Adjusted EPS 2023 2022 USD LC Fee Revenue $1,588 $1,777 (11)% (11)% Adjusted EBITDA $150 $202 (26)% (27)% Adjusted EBITDA Margin 9.4 % 11.4 % (192) bps - Adjusted EPS (Diluted) $0.21 $0.43 (51)% - › Q3’23 fee revenue d
Slide 7: Q3'23 Fee Revenue by Segment and Service Line
Q3’23 Fee Revenue by Segment and Service Line In USD $m Total Fee Revenue Fee Revenue by Service Line Property, Facilities and Project Leasing Capital Markets Valuation & Other Management $1,777 $879 $879 $1,588 $518 $436 $263 $176 $117 $97 Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q3'23
Slide 8: Americas Q3'23 Performance
Americas Q3’23 Performance In USD $m Total Fee Revenue Fee Revenue by Service Line Property, Facilities and Project Leasing Capital Markets Valuation & Other Management $1,314 $618 $612 $1,120 $425 $341 $223 $136 $48 $31 Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q3'23 Growth % LC(1) (15)
Slide 9: EMEA Q3'23 Performance
EMEA Q3’23 Performance In USD $m Total Fee Revenue Fee Revenue by Service Line Property, Facilities and Project Leasing Capital Markets Valuation & Other Management $88 $99 $208 $213 $52 $54 $40 $39 $28 $21 Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q3'23 Growth % LC(1) (5)% 4% (5)% (32)%
Slide 10: APAC Q3'23 Performance
APAC Q3’23 Performance In USD $m Total Fee Revenue Fee Revenue by Service Line Property, Facilities and Project Leasing Capital Markets Valuation & Other Management $255 $255 $172 $168 $41 $41 $19 $29 $27 $12 Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q3'23 Growth % LC(1) 2% (2)% 2% 60% (
Slide 11: Proactive Capital Structure Management
Proactive Capital Structure Management August 2023 Debt Refinancing: > Refinanced $1.4 billion in debt previously with a 2025 maturity in August 2023, using two new facilities.(1) Have refinanced $2.4B in debt year-to-date(2) > Total debt balance unchanged. Expect to reduce total debt balance by ~$2
Slide 12: Leverage and Liquidity
Leverage and Liquidity Strong Available Liquidity Net Debt / Adj. EBITDA Available Liquidity (As of Sep’23) $0.6b $1.7b 4.3x 4.5x Cash & Equivalents 2.8x 2.9x $1.1b 2.5x Available Liquidity Undrawn Revolving 2019 2020 2021 2022 Q3'23 LTM Credit Facility CUSHMAN & WAKEFIELD /12
Slide 13: 2023 Full Year Outlook
2023 Full Year Outlook › Adjusted EBITDA Margins near the low end of previous 9%-10% guidance › Low single-digit y/y growth in PM/FM revenue › Approximately 20%-25% y/y declines in Brokerage › Adjusted Effective Tax Rate estimated to be approximately 30% CUSHMAN & WAKEFIELD /13
Slide 14: Supplemental Slides and Reconciliations of GAAP to Non-GAAP Financial Measures
SUPPLEMENTAL SLIDES AND RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
Slide 15: Debt and Leverage
Debt and Leverage Twelve Months Ended Twelve Months Ended (USD $m, unless otherwise indicated) September 30, 2023 December 31, 2022 December 31, 2021 December 31, 2020 December 31, 2019 2018 First Lien Loan(1) $2,159.2 $2,573.9 $2,593.8 $2,613.7 $2,637.5 2020 Senior Secured Notes(2) 643.3 642.2 640.
Slide 16: Summary of Total Segment Revenues
Summary of Total Segment Revenues Three Months Ended Nine Months Ended Twelve Months Ended (USD $m) September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 September 30, 2023 Americas Segment Property, facilities and project management $611.7 $618.1 $1,869.1 $1,814.3 $2,488.5 Lea
Slide 17: Summary of Total Costs and Expenses
Summary of Total Costs and Expenses Three Months Ended Nine Months Ended (USD $m) September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Americas Fee-based operating expenses $1,017.2 $1,164.6 $3,110.4 $3,471.0 EMEA Fee-based operating expenses 191.9 186.7 568.9 601.1 APAC Fee-b
Slide 18: Reconciliation of Net (Loss) Income to Adjusted EBITDA
Reconciliation of Net (Loss) Income to Adjusted EBITDA Three Months Ended Nine Months Ended Twelve Months Ended (USD $m) September September September September September December December December December 30, 2023 30, 2022 30, 2023 30, 2022 30, 2023 31, 2022 31, 2021 31, 2020 31, 2019 Net (loss) i
Slide 19: Reconciliation of Net (Loss) Income to Adjusted Net Income
Reconciliation of Net (Loss) Income to Adjusted Net Income Three Months Ended Nine Months Ended (USD $m, unless otherwise indicated) September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Net (loss) income $(33.9) $23.9 $(105.2) $166.6 Add/(less): Merger and acquisition related