Cushman & Wakefield Ltd. · NYSE:CWK
Cushman & Wakefield — Q1 2024 Earnings Presentation
19 slides from Cushman & Wakefield's earnings presentation, Apr 29, 2024
Slide 1: Q1 2024 Earnings Presentation
Q1 2024 EARNINGS PRESENTATION APRIL 29, 2024 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. Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) and Adjusted EBITDA margin; ii. Seg
Slide 4: Non-GAAP Financial Measures and Other Financial Information (cont.)
Non-GAAP Financial Measures and Other Financial Information (cont.) Adjustments to U.S. GAAP Financial Measures Used to Calculate Non-GAAP Financial Measures Unrealized loss on investments, net represents net unrealized losses on fair value investments. Prior to 2024, this primarily reflected unreal
Slide 5: First Quarter 2024 Business Update
First Quarter 2024 Business Update(1) › Q1’24 fee revenue of $1.5 billion, flat versus Q1’23 ‒ Leasing fee revenue up 5%, with growth in all three geographic segments for the second consecutive quarter ‒ Capital Markets fee revenue declined 1%; a meaningful improvement vs. the 32% y/y decline in 4Q2
Slide 6: Financial Overview
FINANCIAL OVERVIEW
Slide 7: First Quarter
First Quarter USD $m, except Three Months Ended March 31, % Change Adjusted EPS 2024 2023 USD LC Fee Revenue $1,498 $1,504 (0)% (0)% Adjusted EBITDA $78 $61 28% 29% Adjusted EBITDA Margin 5.2% 4.0% 117bps - Adjusted EPS (Diluted) $0.00 $(0.04) n.m. - › Q1’24 fee revenue stability reflects growth in
Slide 8: Q1'24 Fee Revenue by Segment and Service Line
Q1’24 Fee Revenue by Segment and Service Line In USD $m Total Fee Revenue Fee Revenue by Service Line Services Leasing Capital Markets Valuation & Other $1,498 $1,504 $871 $897 $382 $363 $142 $143 $103 $102 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Growth % LC(1) (0)% (3)% 5% (1%)
Slide 9: Americas Q1'24 Performance
Americas Q1’24 Performance In USD $m Total Fee Revenue Fee Revenue by Service Line Services Leasing Capital Markets Valuation & Other $1,076 $1,045 $599 $628 $300 $295 $111 $119 $35 $33 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Growth % LC(1) (3)% (5)% 1% (7)% 8% % of Fee Revenue L
Slide 10: EMEA Q1'24 Performance
EMEA Q1’24 Performance In USD $m Total Fee Revenue Fee Revenue by Service Line Services Leasing Capital markets Valuation & Other $194 $81 $87 $183 $54 $40 $44 $42 $16 $14 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Growth % LC(1) 3% (9)% 30% 12% 1% % of Fee Revenue LTM Q1'24(2) 42%
Slide 11: APAC Q1'24 Performance
APAC Q1’24 Performance In USD $m Total Fee Revenue Fee Revenue by Service Line Services Leasing Capital Markets Valuation & Other $258 $246 $191 $182 $29 $15 $24 $27 $27 $10 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Growth % LC(1) 8% 7% 10% 52% (6%) % of Fee Revenue LTM Q1’24(2) 67
Slide 12: Leverage and Liquidity
Leverage and Liquidity Net Debt / Adj. EBITDA Debt Maturity Profile (1) (2) in USD $m 4.3x 4.3x 4.4x $982 2.8x 2.9x $1,100 $979 $143 $644 $394 $- $- 2020 2021 2022 2023 Q1'24 LTM 2023 2024 2025 2026 2027 2028 2029 2030 2031 Term Loan (’25 Undrawn Revolving Term Loan (’30 Senior Secured Notes Maturit
Slide 13: Outlook
Outlook 2024 › Sustained Capital Markets growth to occur some time in H2’24 › Leasing market to be relatively stable in 2024 › Services fee revenue expected to achieve a similar growth rate to 2023 › Cost headwinds to be mostly offset by cost and efficiency initiatives › Effective tax rate of 28% CU
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 (USD $m, unless otherwise indicated) March 31, 2024 December 31, 2023 December 31, 2022 December 31, 2021 December 31, 2020 Term Loans(1) $2,103.7 $2,157.7 $2,573.9 $2,593.8 $2,613.7 2028 Senior Secured Notes(2) 644.0 643.7 642.2 640.8 639.4 2031 Senior Secured
Slide 16: Summary of Total Segment Revenues
Summary of Total Segment Revenues Three Months Ended Twelve Months Ended (USD $m) March 31, 2024 March 31, 2023 March 31, 2024 Americas Segment Services $599.4 $628.4 $2,465.7 Leasing 299.5 295.4 1,425.2 Capital markets 111.1 118.8 548.9 Valuation and other 35.4 33.0 152.5 Service line fee revenue (
Slide 17: Summary of Total Costs and Expenses
Summary of Total Costs and Expenses Three Months Ended (USD $m) March 31, 2024 March 31, 2023 Americas Fee-based operating expenses $993.1 $1,029.4 EMEA Fee-based operating expenses 185.6 186.1 APAC Fee-based operating expenses 255.0 247.0 Cost of gross contract reimbursables 687.2 745.3 Segment ope
Slide 18: Reconciliation of Net (Loss) Income to Adjusted EBITDA
Reconciliation of Net (Loss) Income to Adjusted EBITDA Three Months Ended Twelve Months Ended (USD $m) March 31, March 31, March 31, December 31, December 31, December 31, December 31, 2024 2023 2024 2023 2022 2021 2020 Net (loss) income $(28.8) $(76.4) $8.2 $(35.4) $196.4 $250.0 $(220.5) Add/(less)
Slide 19: Reconciliation of Net Loss to Adjusted Net Income (Loss)
Reconciliation of Net Loss to Adjusted Net Income (Loss) Three Months Ended (USD $m, unless otherwise indicated) March 31, 2024 March 31, 2023 Net loss $(28.8) $(76.4) Add/(less): Merger and acquisition related depreciation and amortization 13.9 18.1 Unrealized loss on investments, net 1.0 10.7 Fina