Cushman & Wakefield Ltd. · NYSE:CWK
Cushman & Wakefield — Q3 2019 Earnings Presentation
21 slides from Cushman & Wakefield's earnings presentation, Nov 5, 2019
Slide 1: Q3 Earnings Presentation
Cushman & Wakefield Q3 Earnings Presentation November 5, 2019
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 The following measures are considered “non-GAAP financial measures” under SEC guidelines: i. Fee revenue and fee-based operating expenses ii. Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") and Ad
Slide 4: Today's Presenters
Today's Presenters Brett White Duncan Palmer Bill Knightly Executive Chairman & CEO Chief Financial Officer Investor Relations & Treasurer Cushman & Wakefield | Q3 2019 Earnings Conference Call 4
Slide 5: Q3 Business Highlights
Q3 Business Highlights › Solid fee revenue growth of 9% year-to-date, 4% for third quarter - Strong year-to-date fee revenue growth across all three geographic segments - 15% year-to-date growth in PM / FM - Capital Markets (up 4% year-to-date) and Leasing (up 3% year-to-date) tracking consistent wi
Slide 6: CRE Market Outlook
CRE Market Outlook Macro conditions largely remain favorable for CRE services but Continued strong investment appetite for CRE decelerated against a weaker economic backdrop Synchronized global monetary policy easing Global GDP growth 3.0% and 3.4% for 2019 and 2020, respectively(1) Continuing to mo
Slide 7: Financial Overview
Financial Overview
Slide 8: Q3 and YTD Financial Highlights
Q3 and YTD Financial Highlights USD in Millions, except for Adjusted EPS Adjusted EBITDA Fee Revenue Adjusted EBITDA Adjusted EPS Margin(1) $1,549 $169 10.9% Q3 +4% (5)% (100) bps $0.37 YTD $4,498 $431 9.6% $0.87 +9% +3% (50) bps Strong year-to-date Strong growth across all Driven by revenue Driven
Slide 9: Q3 and YTD Fee Revenue by Segment
Q3 and YTD 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 2019 2018 USD LC 2019 2018 USD LC Americas $1,082 $1,051 3% 3% $3,101 $2,892 7% 8% EMEA 209 212 (1)% 4% 599 575 4% 11% APAC 25
Slide 10: Q3 and YTD Fee Revenue by Service Line
Q3 & Q2 and YTD2018 YTD Fee Revenue ServicebyLine Service Line Performance Third Quarter and Nine Months Ended Performance (USD $m) Three Months Ended September 30, % Change Nine Months Ended September 30, % Change 2019 2018 USD LC 2019 2018 USD LC Prop, Fac & Proj Management $723 $652 11% 12% $2,17
Slide 11: Americas Q3 and YTD Performance
AmericasQuarter Second - Q3 and YTD 2018Performance Performance: Americas Third Quarter and Nine Months Ended Performance (USD $m) Three Months Ended September 30, % Change Nine Months Ended September 30, % Change 2019 2018 USD LC 2019 2018 USD LC Prop, Fac & Proj Management $481 $427 12% 13% $1,428
Slide 12: EMEA - Q3 and YTD Performance
EMEA - Q3 and YTD Performance Third Quarter and Nine Months Ended Performance (USD $m) Three Months Ended September 30, % Change Nine Months Ended September 30, % Change 2019 2018 USD LC 2019 2018 USD LC Prop, Fac & Proj Management $71 $60 19% 25% $215 $178 21% 28% Leasing 56 67 (17)% (13)% 161 174
Slide 13: APAC - Q3 and YTD Performance
APAC - Q3 and YTD Performance Third Quarter and Nine Months Ended Performance (USD $m) Three Months Ended September 30, % Change Nine Months Ended September 30, % Change 2019 2018 USD LC 2019 2018 USD LC Prop, Fac & Proj Management $171 $165 4% 6% $527 $489 8% 13% Leasing 43 41 3% 6% 115 110 4% 9% C
Slide 14: Outlook
Outlook Confirming full-year Adjusted EBITDA guidance of $685 million to $735 million Global brokerage revenue expected to be up low single digits for the full year Cushman & Wakefield | Q3 2019 Earnings Conference Call 14
Slide 15: Cushman & Wakefield
CUSHMAN & WAKEFIELD
Slide 16: Supplemental slides and reconciliations of GAAP to Non-GAAP financial measures
Supplemental slides and reconciliations of GAAP to Non-GAAP financial measures
Slide 17: Reconciliation of GAAP Revenue to Fee Revenue
Reconciliation of GAAP Revenue to Fee Revenue (USD $m) Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Americas Segment Total Revenue $1,512.8 $1,475.6 $4,353.3 $4,053.9 Less: Gross contract costs (
Slide 18: Reconciliation of Total Costs and Expenses to Fee-based Operating Expenses
Reconciliation of Total Costs and Expenses to Fee-based Operating Expenses (USD $m) Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Total costs and expenses 2,081.8 2,055.4 6,079.3 5,848.6 Less: Gro
Slide 19: Reconciliation of Fee-based Operating Expenses by Segment
Reconciliation of Fee-based Operating Expenses by Segment to Consolidated Fee-based Operating Expenses (USD $m) Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Americas Fee-based operating expenses
Slide 20: Reconciliation of Net Income (loss) 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, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Net income (loss) $11.7 $(41.4) $(2.9) $(167.8) Add/(less): Depreciation and amortizat
Slide 21: Reconciliation of Net Income (loss) 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, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Net income (loss) $11.7 $(41.4) $(2.9) $(167.8) Add/(l