Cushman & Wakefield Ltd. · NYSE:CWK
Cushman & Wakefield — Q3 2020 Earnings Presentation
20 slides from Cushman & Wakefield's earnings presentation, Nov 5, 2020
Slide 1: Cushman & Wakefield Q3 Earnings Presentation
Cushman & Wakefield Q3 Earnings Presentation November 5, 2020
Slide 2: Cautionary Note on Forward-Looking Statements
Cautionary Note on Forward-Looking Statements All statements in this presentation (and oral statements made regarding the subjects of this presentation) other than historical facts are forward-looking statements, which rely on a number of estimates, projections and assumptions concerning future even
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 amor
Slide 4: Today's Presenters
Today's Presenters Brett White Duncan Palmer Len Texter Executive Chairman & CEO Chief Financial Officer Investor Relations & Global Controller Cushman & Wakefield | Q3 2020 Earnings Conference Call 4
Slide 5: 2020 Q3 Business Update
2020 Q3 Business Update › Q3 fee revenue of $1.3B, down 15% versus 2019 - PM/FM fee revenue up 3% year over year - Leasing and Capital Markets down 32% and 35%, respectively › Adjusted EBITDA of $117M, down $51M or 31% versus 2019 › Realized over $200m year to date from permanent and temporary cost
Slide 6: Our Continued COVID-19 Response
Our Continued COVID-19 Response › Thought Leadership, Insight & Innovation - Developed the 6 Feet Office concept, a design that enforces social distancing with visual displays of foot traffic routing, clear shields between workstations, and more - Produced Recovery Readiness: A How-to Guide for Reop
Slide 7: Financial Overview
Financial Overview
Slide 8: Q3 Financial Highlights
Q3 Financial Highlights USD in Millions, except for Adjusted EPS Fee Revenue Adjusted EBITDA Adjusted EPS $1,329 $117 Q3 (15)% (31)% $0.16 $3,819 $306 YTD (14)% (28)% $0.38 Principally driven by lower Driven primarily by lower revenue brokerage activity due to COVID- partially offset by cost reducti
Slide 9: Q3 Fee Revenue by Segment
Q3 Fee Revenue by Segment Third Quarter and Nine Months Ended Performance (USD $m) Three Months Ended September 30, % Change Nine Months Ended September 30, % Change 2020 2019 USD LC 2020 2019 USD LC Americas $919 $1,082 (15)% (15)% $2,630 $3,101 (15)% (15)% EMEA 200 209 (4)% (8)% 573 599 (4)% (4)%
Slide 10: Q3 Fee Revenue by Service Line
Q3 Fee Revenue by Service Line 2 & YTD 2018 Service Line Performance Third Quarter and Nine Months Ended Performance (USD $m) Three Months Ended September 30, % Change Nine Months Ended September 30, % Change 2020 2019 USD LC 2020 2019 USD LC Prop, Fac & Proj Management $747 $723 3% 3% $2,173 $2,170
Slide 11: Americas - Q3 Performance
Americas - Q3 Performance Second Quarter 2018 Performance: Americas Third Quarter and Nine Months Ended Performance (USD $m) Three Months Ended September 30, % Change Nine Months Ended September 30, % Change 2020 2019 USD LC 2020 2019 USD LC Prop, Fac & Proj Management $513 $481 7% 7% $1,501 $1,428
Slide 12: EMEA - Q3 Performance
EMEA - Q3 Performance Second Quarter 2018 Performance: EMEA Third Quarter and Nine Months Ended Performance (USD $m) Three Months Ended September 30, % Change Nine Months Ended September 30, % Change 2020 2019 USD LC 2020 2019 USD LC Prop, Fac & Proj Management $95 $71 33% 27% $263 $215 22% 23% Leas
Slide 13: APAC - Q3 Performance
APAC - Q3 Performance Second Quarter 2018 Performance: APAC Third Quarter and Nine Months Ended Performance (USD $m) Three Months Ended September 30, % Change Nine Months Ended September 30, % Change 2020 2019 USD LC 2020 2019 USD LC Prop, Fac & Proj Management $140 $171 (18)% (19)% $409 $527 (22)%
Slide 14: Outlook
Outlook › Expect brokerage revenue for the second half of the year to be down in the range of 40% year over year › PM/FM revenue expected to be stable in 2020 › On track to achieve annualized cost reductions of $400M with $300M realized in 2020 › Includes about $150M of annualized permanent cost sav
Slide 15: Q&A
Q&A
Slide 16: Supplemental Slides and Reconciliations
Supplemental slides and reconciliations of GAAP to Non-GAAP financial measures
Slide 17: Summary of Total Segment Revenues
Summary of Total Segment Revenues (USD $m) Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Americas Segment Service line fee revenue (1) $918.7 $1,082.4 $2,629.8 $3,100.6 Add: Gross contract reimbur
Slide 18: Summary of Total Costs and Expenses
Summary of Total Costs and Expenses (USD $m) Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Americas Fee-based operating expenses $838.3 $957.1 $2,432.9 $2,782.5 EMEA Fee-based operating expenses 1
Slide 19: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income (Loss) to Adjusted EBITDA (USD $m) Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Net income (loss) $(37.3) $11.7 $(193.2) $(2.9) Add/(less): Depreciation and amortizat
Slide 20: Reconciliation of Net Income to Adjusted Net Income
Reconciliation of Net Income (Loss) to Adjusted Net Income (USD $m, unless otherwise indicated) Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Net income (loss) $(37.3) $11.7 $(193.2) $(2.9) Add/(L