Cushman & Wakefield Ltd. · NYSE:CWK
Cushman & Wakefield — Q4 2019 Earnings Presentation
20 slides from Cushman & Wakefield's earnings presentation, Feb 27, 2020
Slide 1: Q4 and Full Year 2019 Earnings Presentation
Cushman & Wakefield Q4 and Full Year 2019 Earnings Presentation February 27, 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. Fee-based operating expenses; ii. Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") a
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 | Q4 2019 Earnings Conference Call 4
Slide 5: 2019 Business Highlights
2019 Business Highlights › Fee revenue growth of 9% for the full year and fourth quarter - Strong full year fee revenue growth across all three geographic segments - 14% growth in PM / FM, 11% in Valuation & Other, and 8% in Capital Markets on a full year basis - Leasing up 2% for the full year cons
Slide 6: CRE Market Outlook
CRE Market Outlook › Macro conditions largely remain favorable for CRE services › Continued strong investment appetite for CRE › Global GDP growth(1) expected to be 3.3% and 3.4% for 2020 and › Synchronized global monetary policy easing 2021, respectively, after decelerating to an estimated 2.9% in
Slide 7: Financial Overview
Financial Overview
Slide 8: Q4 and Full Year Financial Highlights
Q4 and Full Year - Financial Highlights USD in Millions, except for Adjusted EPS Adjusted EBITDA Fee Revenue Adjusted EBITDA Adjusted EPS Margin(1) $1,903 $293 15.4% Q4 +9% +25% +195 bps $0.78 YTD $6,400 $724 11.3% $1.64 +9% +11% +25 bps Strong full year growth across Driven by strong full year Stro
Slide 9: Fee Revenue by Segment
Q4 and Full Year - Fee Revenue by Segment Fourth Quarter and Twelve Months Ended Performance (USD $m) Three Months Ended December 31, % Change Year Ended December 31, % Change 2019 2018 USD LC 2019 2018 USD LC Americas $1,272 $1,151 11% 11% $4,372 $4,043 8% 9% EMEA 330 313 5% 7% 929 888 5% 9% APAC 3
Slide 10: Service Line Fee Revenue
Q4 & Q2 and Full 2018 YTD Year - Service Fee Revenue LinebyPerformance Service Line Fourth Quarter and Twelve Months Ended Performance (USD $m) Three Months Ended December 31, % Change Year Ended December 31, % Change 2019 2018 USD LC 2019 2018 USD LC Prop, Fac & Proj Management $779 $698 12% 13% $2
Slide 11: Americas Q4 and Full Year Performance
AmericasQuarter Second - Q4 and Full 2018 Year Performance Americas Performance: Fourth Quarter and Twelve Months Ended Performance (USD $m) Three Months Ended December 31, % Change Year Ended December 31, % Change 2019 2018 USD LC 2019 2018 USD LC Prop, Fac & Proj Management $513 $441 16% 17% $1,94
Slide 12: EMEA Q4 and Full Year Performance
EMEA - Q4 Second and Full2018 Quarter Year Performance Performance: EMEA Fourth Quarter and Twelve Months Ended Performance (USD $m) Three Months Ended December 31, % Change Year Ended December 31, % Change 2019 2018 USD LC 2019 2018 USD LC Prop, Fac & Proj Management $94 $84 11% 13% $308 $262 18% 2
Slide 13: APAC Q4 and Full Year Performance
APAC - Q4 Second and Full 2018 Quarter Year Performance Performance: APAC Fourth Quarter and Twelve Months Ended Performance (USD $m) Three Months Ended December 31, % Change Year Ended December 31, % Change 2019 2018 USD LC 2019 2018 USD LC Prop, Fac & Proj Management $173 $173 ─% 2% $700 $661 6% 1
Slide 14: 2020 Outlook
2020 Outlook › Guidance for Adjusted EBITDA is $810m to $860m › Adjusted EBITDA margin accretion of over 75 basis points at the mid-point of the guidance range › Other financial matters: - Adjusted effective tax rate(1) at or around 24% - Interest rate on gross debt ~5.5% › Net leverage(2) ratio exp
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 Year Ended December 31, Year Ended December 31, December 31, 2019 December 31, 2018 2019 2018 Americas Segment Service line fee revenue $1,271.6 $1,150.5 $4,372.2 $4,042.7 Add: Gross contract reimbursables 547.2 520.3 1
Slide 18: Summary of Total Costs and Expenses
Summary of Total Costs and Expenses (USD $m) Three Months Ended Three Months Ended Year Ended December Year Ended December December 31, 2019 December 31, 2018 31, 2019 31, 2018 Americas Fee-based operating expenses $1,089.8 $1,014.4 $3,872.3 $3,592.4 EMEA Fee-based operating expenses 265.7 247.5 832
Slide 19: Reconciliation to Adjusted EBITDA
Reconciliation of Net Income (loss) to Adjusted EBITDA Three Months Ended Three Months Ended Year Ended December 31, Year Ended December 31, (USD $m) December 31, 2019 December 31, 2018 2019 2018 Net income (loss) $3.1 $(18.0) $0.2 $(185.8) Add/(less): Depreciation and amortization(1) 73.9 77.0 296.
Slide 20: Reconciliation to Adjusted Net Income
Reconciliation of Net Income (loss) to Adjusted Net Income Three Months Ended Three Months Ended Year Ended December Year Ended December (USD $m, unless otherwise indicated) December 31, 2019 December 31, 2018 31, 2019 31, 2018 Net income (loss) $3.1 $(18.0) $0.2 $(185.8) Add/(less): Merger and acqu