Cushman & Wakefield Ltd. · NYSE:CWK
Cushman & Wakefield — Q2 2019 Earnings Presentation
21 slides from Cushman & Wakefield's earnings presentation, Aug 1, 2019
Slide 1: Q2 Earnings Presentation
Cushman & Wakefield Q2 Earnings Presentation August 1, 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 | Q2 2019 Earnings Conference Call 4
Slide 5: Q2 Business Highlights
Q2 Business Highlights › Solid fee revenue growth of 11% for second quarter, 12% year-to-date - Year-to-date fee revenue growth in double digits across all three geographic segments - 17% year-to-date growth in PM / FM; strong growth across all geographic segments - Leasing (up 10% year-to-date) and
Slide 6: CRE Market Outlook
CRE Market Outlook Macro conditions largely remain favorable for CRE services Continued rent growth as supply/demand metrics broadly balanced Global GDP growth 3.2% and 3.5% for 2019 and 2020, respectively(1) Continued strong investment appetite for CRE CRE Dashboard (U.S. as Proxy) DEMAND SUPPLY RE
Slide 7: Financial Overview
Financial Overview
Slide 8: Q2 and YTD Financial Highlights
Q2 and YTD Financial Highlights USD in Millions, except for Adjusted EPS Adjusted EBITDA Fee Revenue Adjusted EBITDA Adjusted EPS Margin(1) Q2 $1,576 $175 11.1% $0.39 +11% +4% (65) bps YTD $2,948 $263 8.9% $0.50 +12% +9% (15) bps Strong operating results Double-digit growth across Driven by revenue
Slide 9: Q2 and YTD Fee Revenue by Segment Performance
Q2 & Q2 and YTD2018 YTD Fee Revenue ServicebyLine Segment Performance Second Quarter and Six Months Ended Performance (USD $m) Three Months Ended June 30, % Change Six Months Ended June 30, % Change 2019 2018 USD LC 2019 2018 USD LC Americas $1,081 $992 9% 9% $2,018 $1,842 10% 10% EMEA 206 200 3% 9%
Slide 10: Q2 and YTD Fee Revenue Service Line Performance
Q2 & Q2 and YTD2018 YTD Fee Revenue ServicebyLine Service Line Performance Second Quarter and Six Months Ended Performance (USD $m) Three Months Ended June 30, % Change Six Months Ended June 30, % Change 2019 2018 USD LC 2019 2018 USD LC Prop, Fac & Proj Management $740 $657 13% 15% $1,447 $1,272 14
Slide 11: Americas Q2 and YTD Performance
AmericasQuarter Second - Q2 and YTD 2018Performance Performance: Americas Second Quarter and Six Months Ended Performance (USD $m) Three Months Ended June 30, % Change Six Months Ended June 30, % Change 2019 2018 USD LC 2019 2018 USD LC Prop, Fac & Proj Management $485 $426 14% 14% $948 $830 14% 15%
Slide 12: EMEA Q2 and YTD Performance
EMEA - Q2 Second and YTD2018 Quarter Performance Performance: EMEA Second Quarter and Six Months Ended Performance (USD $m) Three Months Ended June 30, % Change Six Months Ended June 30, % Change 2019 2018 USD LC 2019 2018 USD LC Prop, Fac & Proj Management $74 $64 16% 23% $143 $118 21% 30% Leasing
Slide 13: APAC Q2 and YTD Performance
APAC - Q2 Second and YTD2018 Quarter Performance Performance: APAC Second Quarter and Six Months Ended Performance (USD $m) Three Months Ended June 30, % Change Six Months Ended June 30, % Change 2019 2018 USD LC 2019 2018 USD LC Prop, Fac & Proj Management $182 $167 9% 14% $356 $324 10% 16% Leasing
Slide 14: 2019 Outlook
2019 Outlook Continue to see good momentum supported by global economic fundamentals Remain on track consistent with our full year guidance of $685m to $735m Cushman & Wakefield | Q2 2019 Earnings Conference Call 14
Slide 15: Q&A
Q&A
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 Six Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Americas Segment Total Revenue $1,492.9 $1,372.1 $2,840.5 $2,578.3 Less: Gross contract costs (411.8) (383.0) (822.3)
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 Six Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Total costs and expenses 2,068.5 1,943.6 3,997.5 3,793.2 Less: Gross contract costs (545
Slide 19: Reconciliation of Fee-based Operating Expenses by Segment to Consolidated
Reconciliation of Fee-based Operating Expenses by Segment to Consolidated Fee-based Operating Expenses (USD $m) Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Americas Fee-based operating expenses $958.6 $868.6 $1,825.4
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 Six Months Ended June Six Months Ended June June 30, 2019 June 30, 2018 30, 2019 30, 2018 Net income / (loss) $6.3 $(33.5) $(14.6) $(126.4) Add/(less): Depreciation and amortization(1) 74.3 71.6 147
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 Six Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Net income / (loss) $6.3 $(33.5) $(14.6) $(126.4) Add / (less): Merger and a