Cushman & Wakefield Ltd. · NYSE:CWK
Cushman & Wakefield — Q2 2024 Earnings Presentation
20 slides from Cushman & Wakefield's earnings presentation, Jul 29, 2024
Slide 1: Q2 2024 Earnings Presentation
Q2 2024 EARNINGS PRESENTATION JULY 29, 2024
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. Se
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: Second Quarter 2024 Business Update
SECOND QUARTER 2024 BUSINESS UPDATE(1) › Q2’24 fee revenue of $1.6 billion, down 2% versus Q2’23 ‒ Leasing fee revenue up 2%. Third consecutive quarter of global leasing fee revenue growth ‒ Capital Markets fee revenue declined 14%. Americas fee revenue declined 19% while APAC and EMEA Capital Marke
Slide 6: Financial Overview
FINANCIAL OVERVIEW a
Slide 7: Second Quarter Highlights
SECOND QUARTER HIGHLIGHTS USD $m, except Three Months Ended June 30, % Change Adjusted EPS 2024 2023 USD LC Fee Revenue $1,584 $1,633 (3)% (2)% Adjusted EBITDA $139 $146 (5)% (4)% Adjusted EBITDA Margin 8.8% 8.9% (18) bps - Adjusted EPS (Diluted) $0.20 $0.22 (9)% - › Q2’24 fee revenue decline reflec
Slide 8: Q2'24 Fee Revenue by Segment and Service Line
Q2’24 FEE REVENUE BY SEGMENT AND SERVICE LINE In USD $m Total Fee Revenue Fee Revenue by Service Line Services Leasing Capital Markets Valuation & Other $1,584 $1,633 $865 $889 $450 $442 $110 $163 $192 $106 Q2'24 Q2'23 Q2'24 Q2'23 Q2'24 Q2'23 Q2'24 Q2'23 Q2'24 Q2'23 Growth % LC(1) (2)% (2)% 2% (14)%
Slide 9: Americas Q2'24 Performance
AMERICAS Q2’24 PERFORMANCE In USD $m Total Fee Revenue Fee Revenue by Service Line Services Leasing Capital Markets Valuation & Other $1,176 $1,130 $607 $629 $352 $346 $132 $164 $39 $38 Q2'24 Q2'23 Q2'24 Q2'23 Q2'24 Q2'23 Q2'24 Q2'23 Q2'24 Q2'23 Growth % LC(1) (4)% (3)% 2% (19)% 2% % of Fee Revenue
Slide 10: EMEA Q2'24 Performance
EMEA Q2’24 PERFORMANCE In USD $m Total Fee Revenue Fee Revenue by Service Line Services Leasing Capital Markets Valuation & Other $208 $94 $194 $80 $54 $54 $41 $42 $19 $18 Q2'24 Q2'23 Q2'24 Q2'23 Q2'24 Q2'23 Q2'24 Q2'23 Q2'24 Q2'23 Growth % LC(1) (7)% (15)% 0% 7% (3)% % of Fee Revenue LTM Q2’24(2) 4
Slide 11: APAC Q2'24 Performance
APAC Q2’24 PERFORMANCE In USD $m Total Fee Revenue Fee Revenue by Service Line Services Leasing Capital Markets Valuation & Other $260 $178 $249 $166 $44 $42 $26 $30 $12 $10 Q2'24 Q2'23 Q2'24 Q2'23 Q2'24 Q2'23 Q2'24 Q2'23 Q2'24 Q2'23 Growth % LC(1) 7% 9% 7% 19% (10)% % of Fee Revenue LTM Q2’24(2) 67
Slide 12: Capital Structure
CAPITAL STRUCTURE Net Debt / Adj. EBITDA Debt Maturity Profile(1) in USD $m 4.3x 4.3x 4.4x $982 2.8x 2.9x $1,100 $979 $98 $644 $394 2020 2021 2022 2023 LTM Q2'24 $- $- 2023 2024 2025 2026 2027 2028 2029 2030 2031 Term Loan B Undrawn Revolving Term Loan B Senior Secured Notes (’25 Maturity) Credit Fa
Slide 13: 2024 Outlook
2024 OUTLOOK › Leasing revenue growth in the low to mid-single-digits › Improving Capital Markets revenue growth in the second half › Services organic revenue growth flat in 2024 (excludes divestiture) › Cost headwinds to be mostly offset by cost and efficiency initiatives › Effective tax rate of ~2
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) June 30, 2024 December 31, 2023 December 31, 2022 December 31, 2021 December 31, 2020 December 31, 2019 Term Loans(1) $2,058.7 $2,157.7 $2,573.9 $2,593.8 $2,613.7 $2,637.5 2028 Senior Secured Notes(2) 644.4 643.7 642.2 640.8
Slide 16: Summary of Total Segment Revenues
SUMMARY OF TOTAL SEGMENT REVENUES Three Months Ended Six Months Ended Twelve Months Ended (USD $m) June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 June 30, 2024 Americas Segment Services $606.5 $628.7 $1,205.9 $1,257.0 $2,443.5 Leasing 352.2 345.5 651.8 640.9 1,431.9 Capital markets 132.3 16
Slide 17: Summary of Total Costs and Expenses
SUMMARY OF TOTAL COSTS AND EXPENSES Three Months Ended Six Months Ended (USD $m) June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Americas Fee-based operating expenses $1,026.3 $1,067.0 $2,019.4 $2,093.2 EMEA Fee-based operating expenses 181.7 191.4 367.3 377.0 APAC Fee-based operating expens
Slide 18: Reconciliation of Net Income (Loss) to Adjusted EBITDA
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA Three Months Ended Six Months Ended Twelve Months Ended (USD $m) June 30, June 30, June 30, June 30, June 30, December December December December December 2024 2023 2024 2023 2024 31, 2023 31, 2022 31, 2021 31, 2020 31, 2019 Net income (loss) $1
Slide 19: Reconciliation of Net Income (Loss) to Adjusted Net Income
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME Three Months Ended Six Months Ended (USD $m, unless otherwise indicated) June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Net income (loss) $13.5 $5.1 $(15.3) $(71.3) Add/(less): Merger and acquisition related depreciation and amortiz
Slide 20: About Cushman & Wakefield
About Cushman & Wakefield Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and approximately 60 countries. In 2023, the firm reported revenue of $9.5 billion across its