Cushman & Wakefield Ltd. · NYSE:CWK
Cushman & Wakefield — Q1 2021 Earnings Presentation
19 slides from Cushman & Wakefield's earnings presentation, May 6, 2021
Slide 1: Q1 Earnings Presentation
CUSHMAN & WAKEFIELD Q 1 E A R N I N G S P R E S E N TAT I O N M AY 6 , 2 0 2 1
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 amor
Slide 4: Today's Presenters
TODAY’S PRESENTERS Brett White Neil Johnston Len Texter Executive Chairman Chief Financial Officer Investor Relations & CEO & Global Controller CUSHMAN & WAKEFIELD / 4
Slide 5: First Quarter 2021 Business Update
FIRST QUARTER 2021 BUSINESS UPDATE › Q1 fee revenue of $1.3B, down 1% versus 2020 - PM/FM fee revenue up 2% year over year - Leasing and Capital Markets down 5% and 10%, respectively year over year › Q1 Adjusted EBITDA of $100M, up 38% versus 2020 - Adjusted EBIDTA margin of 7.5% expanded 215 basis
Slide 6: Financial Overview
FINANCIAL OVERVIEW Ml | CUSHMAN & dE WAKEFIELD
Slide 7: First Quarter Financial Highlights
FIRST QUARTER FINANCIAL HIGHLIGHTS USD in Millions, except for Adjusted EPS Adjusted EBITDA Fee Revenue Adjusted EBITDA Adjusted EPS Margin(1) $1,338 $100 7.5% $0.11 Q1 (1)% 38% +215 bps +$0.08 › Fee revenue principally reflects the impact of lower brokerage activity due to COVID-19 partially offset
Slide 8: Q1 Fee Revenue by Segment
Q1 FEE REVENUE BY SEGMENT First Quarter and Three Months Ended Performance (USD $m) Three Months Ended March 31, % Change 2021 2020 USD LC Americas $931 $925 1% 1% EMEA 193 188 3% (5)% APAC 213 208 3% (5)% Total Fee Revenue $1,338 $1,320 1% (1)% CUSHMAN & WAKEFIELD / 8
Slide 9: Q1 Fee Revenue by Service Line
Q1 FEE REVENUE BY SERVICE LINE First Quarter and Three Months Ended Performance (USD $m) Three Months Ended March 31, % Change 2021 2020 USD LC Prop, Fac & Proj Management $768 $732 5% 2% Leasing 292 302 (3)% (5)% Capital Markets 166 182 (9)% (10)% Valuation & Other 111 104 7% 2% Total Fee Revenue $
Slide 10: Americas – Q1 Performance
AMERICAS – Q1 PERFORMANCE First Quarter and Three Months Ended Performance (USD $m) Three Months Ended March 31, % Change 2021 2020 USD LC Prop, Fac & Proj Management $541 $502 8% 8% Leasing 220 238 (8)% (8)% Capital Markets 133 147 (9)% (9)% Valuation & Other 37 39 (4)% (3)% Total Fee Revenue $931
Slide 11: EMEA – Q1 Performance
EMEA – Q1 PERFORMANCE First Quarter and Three Months Ended Performance (USD $m) Three Months Ended March 31, % Change 2021 2020 USD LC Prop, Fac & Proj Management $84 $85 (1)% (9)% Leasing 43 41 4% (3)% Capital Markets 22 22 3% (5)% Valuation & Other 45 40 11% 2% Total Fee Revenue $193 $188 3% (5)%
Slide 12: APAC – Q1 Performance
APAC – Q1 PERFORMANCE First Quarter and Three Months Ended Performance (USD $m) Three Months Ended March 31, % Change 2021 2020 USD LC Prop, Fac & Proj Management $144 $145 (1)% (9)% Leasing 29 23 28% 20% Capital Markets 11 14 (24)% (27)% Valuation & Other 30 25 17% 9% Total Fee Revenue $213 $208 3%
Slide 13: 2021 Outlook
2021 OUTLOOK › Anticipate brokerage revenue to grow in 2021 for the full year but not back to 2019 levels in any quarter › Expect low to mid single digit revenue growth in PM/FM › On track to achieve an estimated $125 million of incremental permanent cost savings in 2021 › Permanent cost savings are
Slide 14: Q&A
Q&A (i CUSHMAN & WAKEFIELD
Slide 15: Supplemental Slides and Reconciliations of GAAP to Non-GAAP Financial Measures
SUPPLEMENTAL SLIDES AND RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
Slide 16: Summary of Total Segment Revenues
SUMMARY OF TOTAL SEGMENT REVENUES Three Months Ended Three Months Ended (USD $m) March 31, 2021 March 31, 2020 Americas Segment Service line fee revenue (1) $931.2 $925.2 Add: Gross contract reimbursables (2) 493.7 469.6 Total Revenue $1,424.9 $1,394.8 EMEA Segment Service line fee revenue (1) $193.
Slide 17: Summary of Total Costs and Expenses
SUMMARY OF TOTAL COSTS AND EXPENSES Three Months Ended Three Months Ended (USD $m) March 31, 2021 March 31, 2020 Americas Fee-based operating expenses $854.2 $861.2 EMEA Fee-based operating expenses 192.3 192.1 APAC Fee-based operating expenses 196.1 200.2 Cost of gross contract reimbursables 586.2
Slide 18: Reconciliation of Net Loss to Adjusted EBITDA
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA Three Months Ended Three Months Ended (USD $m) March 31, 2021 March 31, 2020 Net Loss $(17.2) $(55.1) Add/(less): Depreciation and amortization(1) 43.1 72.0 Interest expense, net of interest income 42.4 36.5 Benefit from income taxes (28.0) (26.5) Integr
Slide 19: Reconciliation of Net Loss to Adjusted Net Income
RECONCILIATION OF NET LOSS TO ADJUSTED NET INCOME Three Months Ended Three Months Ended (USD $m, unless otherwise indicated) March 31, 2021 March 31, 2020 Net Loss $(17.2) $(55.1) Add/(less): Merger and acquisition-related depreciation and amortization(1) 20.8 48.0 Financing and other facility costs