Cushman & Wakefield Ltd. · NYSE:CWK
Cushman & Wakefield — Q1 2020 Earnings Presentation
20 slides from Cushman & Wakefield's earnings presentation, May 7, 2020
Slide 1: Cushman & Wakefield Q1 Earnings Presentation
Cushman & Wakefield Q1 Earnings Presentation May 7, 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 amo
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 | Q1 2020 Earnings Conference Call 4
Slide 5: Our COVID-19 Response
Our COVID-19 Response What we’re doing for our people › Launched a Global Employee Assistance Fund, part of a $5 million commitment to employee assistance programs for those impacted by the COVID-19 pandemic. This includes executives forgoing a portion of their salaries which will be contributed to
Slide 6: 2020 Q1 Business Update
2020 Q1 Business Update › Well positioned to continue to service client needs - Robust balance sheet with $1.4B of total liquidity including $380m of cash and $1.0B (undrawn) revolving credit facility - Expanded revolving credit facility late last year, and repriced first lien debt to improve intere
Slide 7: Financial Overview
Financial Overview
Slide 8: Q1 Financial Highlights
Q1 Financial Highlights USD in Millions, except for Adjusted EPS Adjusted EBITDA Fee Revenue Adjusted EBITDA Adjusted EPS Margin(1) $1,320 $70 5.3% $0.03 Q1 (2)% (19)% (110) bps $(0.07) Mid-single digit growth in PM/FM & Valuation more than offset by Driven primarily by revenue weakness in brokerage
Slide 9: Q1 Fee Revenue by Segment
Q1 Fee Revenue by Segment First Quarter Performance (USD $m) Three Months Ended March 31, % Change 2020 2019 USD LC Americas $925 $937 (1)% (1)% EMEA 188 184 2% 5% APAC 208 251 (17)% (14)% Total Fee Revenue $1,320 $1,372 (4)% (2)% Cushman & Wakefield | Q1 2020 Earnings Conference Call 9
Slide 10: Q1 Fee Revenue by Service Line
Q1 Fee Revenue by Service Line First Quarter Performance (USD $m) Three Months Ended March 31, % Change 2020 2019 USD LC Prop, Fac & Proj Management $732 $707 4% 5% Leasing 302 373 (19)% (18)% Capital Markets 182 191 (5)% (4)% Valuation & Other 104 102 3% 5% Total Fee Revenue $1,320 $1,372 (4)% (2)%
Slide 11: March 2020 Trends
March 2020 Trends March Trends v. Prior Year % Change Prop, Fac & Proj Management 4% Leasing (28)% Capital Markets (13)% Valuation & Other 5% Total Fee Revenue (8)% Cushman & Wakefield | Q1 2020 Earnings Conference Call 11
Slide 12: Americas - Q1 Performance
Americas - Q1 Performance First Quarter Performance (USD $m) Three Months Ended March 31, % Change 2020 2019 USD LC Prop, Fac & Proj Management $502 $463 8% 9% Leasing 238 297 (20)% (20)% Capital Markets 147 140 4% 5% Valuation & Other 39 36 7% 7% Total Fee Revenue $925 $937 (1)% (1)% Adjusted EBITD
Slide 13: EMEA - Q1 Performance
EMEA - Q1 Performance First Quarter Performance (USD $m) Three Months Ended March 31, % Change 2020 2019 USD LC Prop, Fac & Proj Management $85 $70 22% 25% Leasing 41 49 (16)% (14)% Capital Markets 22 26 (18)% (16)% Valuation & Other 40 39 4% 6% Total Fee Revenue $188 $184 2% 5% Adjusted EBITDA $(3)
Slide 14: APAC - Q1 Performance
APAC - Q1 Performance First Quarter Performance (USD $m) Three Months Ended March 31, % Change 2020 2019 USD LC Prop, Fac & Proj Management $145 $174 (16)% (12)% Leasing 23 27 (15)% (12)% Capital Markets 14 24 (41)% (42)% Valuation & Other 25 26 (4)% (1)% Total Fee Revenue $208 $251 (17)% (14)% Adju
Slide 15: Second Quarter 2020 Outlook
Second Quarter 2020 Outlook › Withdrawing full-year guidance for 2020 › Limited line of sight into short term revenue trends › Brokerage decline expected to be worse in Q2 than later quarters › Decline in capital markets generally expected to be higher than leasing › PM/FM expected to be relatively
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: Summary of Total Segment Revenues
Summary of Total Segment Revenues (USD $m) Three Months Ended Three Months Ended March 31, 2020 March 31, 2019 Americas Segment Service line fee revenue(1) $925.2 $937.1 Add: Gross contract reimbursables(2) 469.6 410.5 Total Revenue $1,394.8 $1,347.6 EMEA Segment Service line fee revenue(1) $187.5 $
Slide 18: Summary of Total costs and expenses
Summary of Total costs and expenses (USD $m) Three Months Ended Three Months Ended March 31, 2020 March 31, 2019 Americas Fee-based operating expenses $861.2 $866.8 EMEA Fee-based operating expenses 192.1 185.4 APAC Fee-based operating expenses 200.2 232.8 Cost of gross contract reimbursables 575.0
Slide 19: Reconciliation of Net Loss to Adjusted EBITDA
Reconciliation of Net Loss to Adjusted EBITDA (USD $m) Three Months Ended Three Months Ended March 31, 2020 March 31, 2019 Net loss $(55.1) $(20.9) Add/(less): Depreciation and amortization(1) 72.0 73.5 Interest expense, net of interest income 36.5 37.2 Benefit from income taxes (26.5) (40.9) Integr
Slide 20: Reconciliation of Net Loss to Adjusted Net Income
Reconciliation of Net Loss to Adjusted Net Income (USD $m, unless otherwise indicated) Three Months Ended Three Months Ended March 31, 2020 March 31, 2019 Net loss $(55.1) $(20.9) Add/(Less): Merger and acquisition-related depreciation and amortization(1) 48.0 52.8 Financing and other facility costs