Strong global leasing revenue growth of 13% Net
cash flow from operations and free cash flow both improved by more
than $140 million year-to-date vs. 2023 Fully repaid term loan due
in 2025
Cushman & Wakefield (NYSE: CWK) today reported financial
results for the third quarter of 2024.
“This quarter marked an important turning point. We reported the
highest quarter of global Leasing revenue growth and the first
quarter of Americas Capital markets revenue growth since the second
quarter of 2022. We also continued to generate strong free cash
flow which facilitated the recent full repayment of our term loan
due in 2025 well ahead of schedule,” said Michelle MacKay, Chief
Executive Officer of Cushman & Wakefield. “The strategic work
we have completed over the past year has created meaningful growth
opportunities for our business and we are energized to deliver on
these priorities in the years ahead.”
Third Quarter Results:
- Revenue of $2.3 billion for the third quarter of 2024 increased
3% from the third quarter of 2023.
- Leasing grew 13% driven by industrial and office leasing in the
Americas and APAC.
- Valuation and other grew 8% driven by the Americas and
EMEA.
- Services and Capital markets declined 2% and 4%,
respectively.
- Net income of $33.7 million for the third quarter of 2024
increased $67.6 million compared to net loss of $33.9 million for
the third quarter of 2023. Diluted earnings per share was $0.14 for
the quarter.
- Adjusted EBITDA of $142.5 million decreased 5% from the third
quarter of 2023, with Adjusted EBITDA margin of 8.7% declining 72
basis points from the third quarter of 2023.
- Adjusted diluted earnings per share was $0.23 for the
quarter.
- On August 1, 2024, we completed the sale of a non-core Services
business in the Americas, which resulted in a loss on disposition
of $4.5 million and $17.0 million during the three and nine months
ended September 30, 2024, respectively.
Year-to-Date Results:
- Revenue of $6.8 billion for the nine months ended September 30,
2024 decreased 2% from the nine months ended September 30, 2023.
- Strong Leasing growth of 7% was driven by broad strength across
all segments, particularly the Americas.
- Valuation and other grew 2% driven by the Americas and
EMEA.
- Services and Capital markets declined 2% and 7%,
respectively.
- Net income of $18.4 million for the nine months ended September
30, 2024 increased $123.6 million compared to net loss of $105.2
million for the nine months ended September 30, 2023. Diluted
earnings per share for the nine months ended September 30, 2024 was
$0.08.
- Adjusted EBITDA of $359.5 million increased 1% from the nine
months ended September 30, 2023, with an Adjusted EBITDA margin of
7.6% unchanged from the same period in 2023.
- Adjusted diluted earnings per share of $0.43 was up from $0.39
for the nine months ended September 30, 2023.
- Net cash provided by operating activities was $92.8 million for
the nine months ended September 30, 2024.
- Free cash flow generated for the nine months ended September
30, 2024 of $61.1 million was a $146.1 million improvement compared
to a free cash flow use of $85.0 million in the nine months ended
September 30, 2023.
- Liquidity as of September 30, 2024 was $1.9 billion, consisting
of availability on the Company’s undrawn revolving credit facility
of $1.1 billion and cash and cash equivalents of $0.8 billion.
In October 2024, we elected to prepay the remaining $47.9
million principal balance outstanding under the Company’s term
loans due in 2025, bringing our aggregate year-to-date debt
repayments, including required principal payments, to $200.4
million. Currently, there are no funded long-term debt arrangements
maturing prior to 2028. Additionally, in October 2024, we repriced
$1.0 billion of the Company’s term loans due in 2030, reducing the
applicable interest rate on such tranche by 50 basis points to
1-month Term SOFR plus 3.25%.
Consolidated Results
(unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
(in millions, except per share data)
2024
2023
% Change in USD
% Change in Local
Currency(5)
2024
2023
% Change in USD
% Change in Local
Currency(5)
Revenue:
Services
$
865.2
$
878.8
(2
)%
(2
)%
$
2,600.6
$
2,664.7
(2
)%
(2
)%
Leasing
492.7
435.7
13
%
13
%
1,324.7
1,240.0
7
%
7
%
Capital markets
169.5
176.3
(4
)%
(4
)%
474.3
511.0
(7
)%
(7
)%
Valuation and other
105.2
97.3
8
%
7
%
314.2
309.3
2
%
2
%
Total service line fee revenue(1)
1,632.6
1,588.1
3
%
3
%
4,713.8
4,725.0
0
%
0
%
Gross contract reimbursables(2)
711.6
697.9
2
%
2
%
2,103.2
2,216.3
(5
)%
(5
)%
Total revenue
$
2,344.2
$
2,286.0
3
%
2
%
$
6,817.0
$
6,941.3
(2
)%
(2
)%
Costs and expenses:
Cost of services provided to clients
$
1,200.2
$
1,184.2
1
%
1
%
$
3,515.9
$
3,551.5
(1
)%
(1
)%
Cost of gross contract reimbursables
711.6
697.9
2
%
2
%
2,103.2
2,216.3
(5
)%
(5
)%
Total costs of services
1,911.8
1,882.1
2
%
1
%
5,619.1
5,767.8
(3
)%
(2
)%
Operating, administrative and other
314.2
300.9
4
%
4
%
904.4
945.7
(4
)%
(4
)%
Depreciation and amortization
28.9
36.2
(20
)%
(21
)%
92.6
108.8
(15
)%
(15
)%
Restructuring, impairment and related
charges
14.1
9.2
53
%
51
%
36.5
23.4
56
%
55
%
Total costs and expenses
2,269.0
2,228.4
2
%
2
%
6,652.6
6,845.7
(3
)%
(3
)%
Operating income
75.2
57.6
31
%
31
%
164.4
95.6
72
%
72
%
Interest expense, net of interest
income
(54.9
)
(89.5
)
(39
)%
(39
)%
(174.4
)
(224.2
)
(22
)%
(22
)%
Earnings from equity method
investments
12.1
16.6
(27
)%
(28
)%
28.1
41.3
(32
)%
(32
)%
Other income (expense), net
20.6
(2.0
)
n.m.
n.m.
25.6
(12.8
)
n.m.
n.m.
Earnings (loss) before income taxes
53.0
(17.3
)
n.m.
n.m.
43.7
(100.1
)
n.m.
n.m.
Provision for income taxes
19.3
16.6
16
%
15
%
25.3
5.1
n.m.
n.m.
Net income (loss)
$
33.7
$
(33.9
)
n.m.
n.m.
$
18.4
$
(105.2
)
n.m.
n.m.
Net income (loss) margin
1.4
%
(1.5
)%
0.3
%
(1.5
)%
Adjusted EBITDA(3)
$
142.5
$
150.0
(5
)%
(5
)%
$
359.5
$
357.0
1
%
1
%
Adjusted EBITDA margin(3)
8.7
%
9.4
%
7.6
%
7.6
%
Adjusted net income(3)
$
52.6
$
48.0
10
%
$
98.9
$
89.1
11
%
Weighted average shares outstanding,
basic
229.3
227.2
228.7
226.9
Weighted average shares outstanding,
diluted(4)
233.4
227.7
232.1
227.4
Earnings (loss) per share, basic
$
0.15
$
(0.15
)
$
0.08
$
(0.46
)
Earnings (loss) per share, diluted
$
0.14
$
(0.15
)
$
0.08
$
(0.46
)
Adjusted earnings per share,
diluted(3)(4)
$
0.23
$
0.21
$
0.43
$
0.39
n.m. not meaningful
(1) Service line fee revenue represents
revenue for fees generated from each of our service lines.
(2) Gross contract reimbursables reflects
revenue from clients which have substantially no margin.
(3) See the end of this press release for
reconciliations of (i) Net income (loss) to Adjusted EBITDA and
(ii) Net income (loss) to Adjusted net income and for explanations
of the calculation of Adjusted EBITDA margin and Adjusted earnings
per share, diluted. See also the definition of, and a description
of the purposes for which management uses, these non-GAAP financial
measures under the Use of Non-GAAP Financial Measures section in
this press release.
(4) For all periods with a GAAP net loss,
weighted average shares outstanding, diluted is only used to
calculate Adjusted earnings per share, diluted. For all periods
with a GAAP net loss, all potentially dilutive shares would be
anti-dilutive; therefore, both basic and diluted loss per share are
calculated using weighted average shares outstanding, basic.
(5) In order to assist our investors and
improve comparability of results, we present the period-over-period
changes in certain of our non-GAAP financial measures, such as
Adjusted EBITDA, in “local” currency. The local currency change
represents the period-over-period change assuming no movement in
foreign exchange rates from the prior period. We believe that this
presentation provides our management and investors with a better
view of comparability and trends in the underlying operating
business.
Third Quarter Results
(unaudited)
Revenue
Revenue of $2.3 billion increased $58.2 million or 3% compared
to the three months ended September 30, 2023, primarily driven by
Leasing revenue growth of 13%, with strength in the Americas and
APAC. In the Americas, Leasing revenue grew 16% primarily driven by
strong office and industrial revenue as a result of improved
business optimism. In addition, Valuation and other revenue
increased 8%. Partially offsetting these trends was a 4% decline in
Capital markets revenue, primarily driven by APAC, as volatility
and uncertainty in the interest rate environment continued to
challenge investment sales activity. Services revenue declined 2%
and Gross contract reimbursables increased 2% due to changes in
client mix and the sale of a non-core Services business on August
1, 2024.
Costs of services
Costs of services of $1.9 billion increased $29.7 million or 2%
compared to the three months ended September 30, 2023, principally
driven by an increase in employment costs of approximately $83.0
million including higher commissions as a result of higher Leasing
revenue, partially offset by declines in third-party consumables
and sub-contractor costs of approximately $40.0 million, as a
result of lower Services revenue. Cost of services provided to
clients increased 1% and Cost of gross contract reimbursables
increased 2%.
Operating, administrative and other
Operating, administrative and other expenses of $314.2 million
increased $13.3 million or 4% compared to the three months ended
September 30, 2023, driven by higher employment costs due to the
timing of incentive compensation accrual adjustments in the third
quarter of 2023, partially offset by our cost savings
initiatives.
Restructuring, impairment and related charges
Restructuring, impairment and related charges of $14.1 million
increased $4.9 million compared to the three months ended September
30, 2023, primarily driven by an additional $4.5 million loss on
disposition recognized in the third quarter of 2024 related to the
sale of a non-core Services business in the Americas.
Interest expense, net of interest income
Interest expense of $54.9 million decreased $34.6 million or 39%
compared to the three months ended September 30, 2023, primarily
related to a loss on debt extinguishment of $25.0 million as well
as $4.0 million of new transaction costs expensed in the third
quarter of 2023 in connection with the refinancing of a portion of
the borrowings under our 2018 Credit Agreement (see Note 10:
Long-Term Debt and Other Borrowings in the Notes to the Condensed
Consolidated Financial Statements in our Quarterly Report on Form
10-Q for the quarter ended September 30, 2024 for further
information). The decrease in interest expense was also partially
driven by lower variable interest rates on our term loans compared
to the prior year period.
Earnings from equity method investments
Earnings from equity method investments of $12.1 million
decreased $4.5 million compared to the three months ended September
30, 2023, primarily due to a decline in earnings recognized from
our equity method investment Cushman Wakefield Greystone LLC (the
“Greystone JV”) due to lower transaction volumes as a result of
tighter lending conditions given the volatility in interest
rates.
Other income (expense), net
Other income, net was $20.6 million for the three months ended
September 30, 2024 compared to other expense, net of $2.0 million
for the three months ended September 30, 2023, driven by a $17.3
million gain from insurance proceeds recognized in the third
quarter of 2024 (see Note 11: Commitments and Contingencies in the
Notes to the Condensed Consolidated Financial Statements in our
Quarterly Report on Form 10-Q for the quarter ended September 30,
2024 for further information), as well as lower net unrealized
losses on our fair value investments, primarily related to our
investment in WeWork.
Provision for income taxes
Provision for income taxes for the third quarter of 2024 was
$19.3 million on earnings before income taxes of $53.0 million. For
the third quarter of 2023, the provision for income taxes was $16.6
million on loss before income taxes of $17.3 million. The increase
in income tax expense compared to the three months ended September
30, 2023 was primarily driven by higher earnings before income
taxes and changes in the jurisdictional mix of earnings resulting
in higher non-deductible losses when compared to the same period in
2023.
Net income (loss) and Adjusted EBITDA
Net income was $33.7 million for the three months ended
September 30, 2024 compared to net loss of $33.9 million for the
three months ended September 30, 2023. Net income margin was 1.4%
compared to net loss margin of 1.5% for the three months ended
September 30, 2023. The $67.6 million increase in net income was
driven by growth in our Leasing service line, the impact of our
cost savings initiatives, a one-time gain from insurance proceeds
and lower losses on our fair value investments. Additionally, a
loss on debt extinguishment incurred in 2023 contributed to the
improvement from the prior year period. These favorable trends were
partially offset by declines in our Services and Capital markets
service lines, higher incentive compensation and the loss on
disposition recognized in the third quarter of 2024.
Adjusted EBITDA of $142.5 million decreased $7.5 million or 5%
compared to the three months ended September 30, 2023, driven by
the same factors impacting Net income above, with the exception of
the gain from insurance proceeds, net unrealized losses on our fair
value investments, loss on disposition and loss on debt
extinguishment incurred in the prior year period. Adjusted EBITDA
margin, measured against service line fee revenue, of 8.7% declined
72 basis points from the third quarter of 2023.
Year-to-Date Results
(unaudited)
Revenue
Revenue of $6.8 billion decreased $124.3 million or 2% compared
to the nine months ended September 30, 2023, driven by the Americas
and EMEA which decreased 3% and 3%, respectively, partially offset
by growth in APAC of 7%. This decline was principally driven by
decreases in Services and Gross contract reimbursables revenue of
2% and 5%, respectively, due to changes in client mix. Capital
markets revenue declined 7%, driven by a 9% decline in the
Americas, as volatility and uncertainty in the interest rate
environment continued to challenge investment sales activity in the
first half of 2024. Partially offsetting these trends was 7% growth
in Leasing revenue compared to the nine months ended September 30,
2023, driven by broad strength across all segments, primarily
within the industrial and office sectors. Valuation and other
revenue also increased 2%.
Costs of services
Costs of services of $5.6 billion decreased $148.7 million or 3%
compared to the nine months ended September 30, 2023, principally
driven by a decrease in third-party consumables and sub-contractor
costs of approximately $189.0 million, partially offset by an
increase in employment costs of approximately $52.0 million. Cost
of services provided to clients decreased 1% and Cost of gross
contract reimbursables decreased 5%, driven by the Americas, due to
changes in client mix. Total costs of services as a percentage of
total revenue was 82% for the nine months ended September 30, 2024
compared to 83% for the nine months ended September 30, 2023.
Operating, administrative and other
Operating, administrative and other expenses of $904.4 million
decreased $41.3 million or 4% compared to the nine months ended
September 30, 2023, driven by the impact of our cost savings
initiatives, primarily realized as a reduction in employment costs.
In addition, during June 2023, the Company incurred an $11.3
million servicing liability fee in connection with the amendment
and extension of our accounts receivable securitization program
(the “A/R Securitization”). Operating, administrative and other
expenses as a percentage of total revenue was 13% for the nine
months ended September 30, 2024 compared to 14% for the nine months
ended September 30, 2023.
Restructuring, impairment and related charges
Restructuring, impairment and related charges of $36.5 million
increased $13.1 million compared to the nine months ended September
30, 2023, primarily driven by a loss on disposition of $17.0
million related to the sale of a non-core Services business in the
Americas, partially offset by a decrease in severance and
employment-related costs of $3.2 million. In 2023, the Company
actioned certain cost savings initiatives, including a reduction in
headcount across select roles to help optimize our workforce given
the challenging macroeconomic conditions and operating environment,
as well as property lease rationalizations. These actions continued
through September 30, 2024.
Interest expense, net of interest income
Interest expense of $174.4 million decreased $49.8 million or
22% compared to the nine months ended September 30, 2023, primarily
related to an aggregate loss on debt extinguishment of $41.9
million as well as $8.7 million of new transaction costs expensed
in 2023 in connection with the refinancing of a portion of the
borrowings under our 2018 Credit Agreement (see Note 10: Long-Term
Debt and Other Borrowings in the Notes to the Condensed
Consolidated Financial Statements in our Quarterly Report on Form
10-Q for the quarter ended September 30, 2024 for further
information). The decrease in interest expense was partially offset
by higher variable interest rates on our term loans compared to the
prior year period.
Earnings from equity method investments
Earnings from equity method investments of $28.1 million
decreased $13.2 million compared to the nine months ended September
30, 2023, primarily due to a decline of $13.6 million in earnings
recognized from the Greystone JV due to lower transaction volumes
as a result of tighter lending conditions given the volatility in
interest rates.
Other income (expense), net
Other income, net was $25.6 million for the nine months ended
September 30, 2024 compared to other expense, net of $12.8 million
for the nine months ended September 30, 2023, driven by a $17.3
million gain from insurance proceeds recognized in the third
quarter of 2024 (see Note 11: Commitments and Contingencies in the
Notes to the Condensed Consolidated Financial Statements in our
Quarterly Report on Form 10-Q for the quarter ended September 30,
2024 for further information), as well as lower net unrealized
losses on our fair value investments, primarily related to our
investment in WeWork. These trends were partially offset by lower
royalty fee income.
Provision for income taxes
Provision for income taxes for the nine months ended September
30, 2024 was $25.3 million on earnings before income taxes of $43.7
million. For the nine months ended September 30, 2023, the
provision for income taxes was $5.1 million on a loss before income
taxes of $100.1 million. The increase in income tax expense was
driven by an increase in earnings before income taxes and changes
in the jurisdictional mix of earnings resulting in higher
non-deductible losses when compared to the same period in 2023.
Net income (loss) and Adjusted EBITDA
Net income was $18.4 million for the nine months ended September
30, 2024 compared to net loss of $105.2 million in the nine months
ended September 30, 2023. Net income margin was 0.3% compared to
net loss margin of 1.5% for the prior year period. The improvement
was driven by the impact of our cost savings initiatives, including
lower employment costs, growth in our Leasing service line, a
one-time gain from insurance proceeds and lower net unrealized
losses on our fair value investments. Additionally, an aggregate
loss on debt extinguishment and a servicing liability fee
associated with the amendment and extension of the A/R
Securitization in 2023 contributed to the improvement from the
prior year period. These favorable trends were partially offset by
declines in our Services and Capital markets service lines and the
loss on disposition recognized in 2024.
Adjusted EBITDA of $359.5 million increased $2.5 million or 1%
compared to the nine months ended September 30, 2023, driven by the
same factors impacting Net income above, with the exception of the
gain from insurance proceeds, net unrealized losses on our fair
value investments, loss on disposition and the aggregate loss on
debt extinguishment and A/R Securitization servicing liability fee
incurred in the prior year period. Adjusted EBITDA margin, measured
against service line fee revenue, of 7.6% remained unchanged from
the nine months ended September 30, 2023.
Balance Sheet
Liquidity at the end of the third quarter was $1.9 billion,
consisting of availability on the Company’s undrawn revolving
credit facility of $1.1 billion and cash and cash equivalents of
$0.8 billion.
Net debt as of September 30, 2024 was $2.3 billion reflecting
the Company’s outstanding term loans of $2.0 billion and senior
secured notes totaling $1.1 billion, net of cash and cash
equivalents of $0.8 billion. See the “Use of Non-GAAP Financial
Measures” section in this press release for the definition of, and
a description of the purposes for which management uses, this
non-GAAP financial measure.
Conference Call
The Company’s Third Quarter 2024 Earnings Conference Call will
be held today, November 4, 2024, at 5:00 p.m. Eastern Time. A
webcast, along with an associated slide presentation, will be
accessible through the Investor Relations section of the Company’s
website at http://ir.cushmanwakefield.com.
The direct dial-in number for the conference call is
1-844-825-9789 for U.S. callers and 1-412-317-5180 for
international callers. A replay of the call will be available
approximately two hours after the conference call by accessing
http://ir.cushmanwakefield.com. A transcript of the call will be
available on the Investor Relations section of the Company’s
website at http://ir.cushmanwakefield.com.
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 core service lines of (i) Services, (ii)
Leasing, (iii) Capital markets, and (iv) Valuation and other. It
also receives numerous industry and business accolades for its
award-winning culture and commitment to Diversity, Equity and
Inclusion (DEI), sustainability and more. For additional
information, visit www.cushmanwakefield.com.
Cautionary Note on Forward-Looking
Statements
All statements in this release 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
factors outside Cushman & Wakefield’s control. Such factors
include, but are not limited to, disruptions in general
macroeconomic conditions and global and regional demand for
commercial real estate; our ability to attract and retain qualified
revenue producing employees and senior management; the failure of
our acquisitions and joint ventures to perform as expected or the
lack of similar future opportunities; our ability to preserve, grow
and leverage the value of our brand; the concentration of business
with specific corporate clients; our ability to appropriately
address actual or perceived conflicts of interest; our ability to
maintain and execute our information technology strategies;
interruption or failure of our information technology,
communications systems or data services; our vulnerability to
potential breaches in security related to our information systems;
our ability to comply with current and future data privacy
regulations and other confidentiality obligations; the extent to
which infrastructure disruptions may affect our ability to provide
our services; the potential impairment of our goodwill and other
intangible assets; our ability to comply with laws and regulations
and any changes thereto; changes in tax laws or tax rates and our
ability to make correct determinations in complex tax regimes; our
ability to successfully execute on our strategy for operational
efficiency; the failure of third parties performing on our behalf
to comply with contract, regulatory or legal requirements; risks
associated with the climate change and ability to achieve our
sustainability goals; foreign currency volatility; social,
geopolitical and economic risks associated with our international
operations; risks associated with sociopolitical polarization;
restrictions imposed on us by the agreements governing our
indebtedness; our amount of indebtedness and its potential adverse
impact on our available cash flow and the operation of our
business; our ability to incur more indebtedness; our ability to
generate sufficient cash flow from operations to service our
existing indebtedness; our ability to compete globally, regionally
and locally; the seasonality of significant portions of our revenue
and cash flow; our exposure to environmental liabilities due to our
role as a real estate services provider; potential price declines
resulting from future sales of a large number of our ordinary
shares; risks related to our capital allocation strategy including
current intentions to not pay cash dividends; risks related to
litigation; the fact that the rights of our shareholders differ in
certain respects from the rights typically offered to shareholders
of a Delaware corporation; the fact that U.S. investors may have
difficulty enforcing liabilities against us or be limited in their
ability to bring a claim in a judicial forum they find favorable in
the event of a dispute; and the possibility that English law and
provisions in our articles of association may have anti-takeover
effects that could discourage an acquisition of us by others or
require shareholder approval for certain capital structure
decisions. Should any Cushman & Wakefield estimates,
projections and assumptions or these other uncertainties and
factors materialize in ways that Cushman & Wakefield did not
expect, there is no guarantee of future performance and the actual
results could differ materially from the forward-looking statements
in this press release, including the possibility that recipients
may lose a material portion of the amounts invested. While Cushman
& Wakefield believes the assumptions underlying these
forward-looking statements are reasonable under current
circumstances, such assumptions are inherently uncertain and
subjective and past or projected performance is not necessarily
indicative of future results. No representation or warranty,
express or implied, is made as to the accuracy or completeness of
the information contained in this press release, and nothing shall
be relied upon as a promise or representation as to the performance
of any investment. You are cautioned not to place undue reliance on
such forward-looking statements or other information in this press
release and should rely on your own assessment of an investment or
a transaction. Any estimates or projections as to events that may
occur in the future are based upon the best and current judgment of
Cushman & Wakefield as actual results may vary from the
projections and such variations may be material. Any
forward-looking statements speak only as of the date of this press
release and, except to the extent required by applicable securities
laws, Cushman & Wakefield expressly disclaims any obligation to
update or revise any of them, whether as a result of new
information, future events or otherwise. Additional information
concerning factors that may influence the Company’s results is
discussed under “Risk Factors” in Part I, Item 1A of its Annual
Report on Form 10-K for the year ended December 31, 2023 and in its
other periodic reports filed with the Securities and Exchange
Commission (the “SEC”).
Cushman & Wakefield
plc
Condensed Consolidated
Statements of Operations
(unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
(in millions, except per share data)
2024
2023
2024
2023
Revenue
$
2,344.2
$
2,286.0
$
6,817.0
$
6,941.3
Costs and expenses:
Costs of services (exclusive of
depreciation and amortization)
1,911.8
1,882.1
5,619.1
5,767.8
Operating, administrative and other
314.2
300.9
904.4
945.7
Depreciation and amortization
28.9
36.2
92.6
108.8
Restructuring, impairment and related
charges
14.1
9.2
36.5
23.4
Total costs and expenses
2,269.0
2,228.4
6,652.6
6,845.7
Operating income
75.2
57.6
164.4
95.6
Interest expense, net of interest
income
(54.9
)
(89.5
)
(174.4
)
(224.2
)
Earnings from equity method
investments
12.1
16.6
28.1
41.3
Other income (expense), net
20.6
(2.0
)
25.6
(12.8
)
Earnings (loss) before income taxes
53.0
(17.3
)
43.7
(100.1
)
Provision for income taxes
19.3
16.6
25.3
5.1
Net income (loss)
$
33.7
$
(33.9
)
$
18.4
$
(105.2
)
Basic earnings (loss) per share:
Earnings (loss) per share attributable to
common shareholders, basic
$
0.15
$
(0.15
)
$
0.08
$
(0.46
)
Weighted average shares outstanding for
basic earnings (loss) per share
229.3
227.2
228.7
226.9
Diluted earnings (loss) per share:
Earnings (loss) per share attributable to
common shareholders, diluted
$
0.14
$
(0.15
)
$
0.08
$
(0.46
)
Weighted average shares outstanding for
diluted earnings (loss) per share
233.4
227.2
232.1
226.9
Cushman & Wakefield
plc
Condensed Consolidated Balance
Sheets
As of
(in millions, except share data)
September 30, 2024
December 31, 2023
Assets
(unaudited)
Current assets:
Cash and cash equivalents
$
775.4
$
767.7
Trade and other receivables, net of
allowance of $89.4 and $85.2, as of September 30, 2024 and December
31, 2023, respectively
1,278.1
1,468.0
Income tax receivable
65.5
67.1
Short-term contract assets, net
302.0
311.0
Prepaid expenses and other current
assets
227.9
189.4
Total current assets
2,648.9
2,803.2
Property and equipment, net
141.6
163.8
Goodwill
2,049.4
2,080.9
Intangible assets, net
703.2
805.9
Equity method investments
723.5
708.0
Deferred tax assets
124.2
67.4
Non-current operating lease assets
303.7
339.0
Other non-current assets
839.5
805.8
Total assets
$
7,534.0
$
7,774.0
Liabilities and Shareholders’
Equity
Current liabilities:
Short-term borrowings and current portion
of long-term debt
$
96.4
$
149.7
Accounts payable and accrued expenses
1,068.6
1,157.7
Accrued compensation
799.9
851.4
Income tax payable
30.7
20.8
Other current liabilities
245.4
217.6
Total current liabilities
2,241.0
2,397.2
Long-term debt, net
2,997.0
3,096.9
Deferred tax liabilities
43.2
13.7
Non-current operating lease
liabilities
279.8
319.6
Other non-current liabilities
270.0
268.6
Total liabilities
5,831.0
6,096.0
Shareholders’ equity:
Ordinary shares, nominal value $0.10 per
share, 800,000,000 shares authorized; 229,420,978 and 227,282,173
shares issued and outstanding as of September 30, 2024 and December
31, 2023, respectively
22.9
22.7
Additional paid-in capital
2,970.7
2,957.3
Accumulated deficit
(1,098.8
)
(1,117.2
)
Accumulated other comprehensive loss
(192.4
)
(185.4
)
Total equity attributable to the
Company
1,702.4
1,677.4
Non-controlling interests
0.6
0.6
Total equity
1,703.0
1,678.0
Total liabilities and shareholders’
equity
$
7,534.0
$
7,774.0
Cushman & Wakefield
plc
Condensed Consolidated
Statements of Cash Flows
(unaudited)
Nine Months Ended September
30,
(in millions)
2024
2023
Cash flows from operating
activities
Net income (loss)
$
18.4
$
(105.2
)
Reconciliation of net income (loss) to net
cash provided by (used in) operating activities:
Depreciation and amortization
92.6
108.8
Impairment charges
3.8
4.5
Unrealized foreign exchange gain
(0.9
)
(6.0
)
Stock-based compensation
22.3
39.9
Lease amortization
67.9
71.6
Loss on debt extinguishment
—
19.3
Amortization of debt issuance costs
5.5
5.8
Earnings from equity method investments,
net of distributions received
(13.4
)
(22.7
)
Change in deferred taxes
(22.9
)
13.0
Provision for loss on receivables and
other assets
10.7
4.8
Loss on disposal of business
17.0
1.3
Unrealized loss on equity securities,
net
0.8
22.9
Gain from insurance proceeds
(17.3
)
—
Other operating activities, net
(21.8
)
16.0
Changes in assets and liabilities:
Trade and other receivables
61.6
150.5
Income taxes payable
10.6
(84.9
)
Short-term contract assets and Prepaid
expenses and other current assets
17.7
36.0
Other non-current assets
(14.1
)
(32.6
)
Accounts payable and accrued expenses
(56.2
)
(81.4
)
Accrued compensation
(46.2
)
(164.9
)
Other current and non-current
liabilities
(43.3
)
(46.9
)
Net cash provided by (used in) operating
activities
92.8
(50.2
)
Cash flows from investing
activities
Payment for property and equipment
(31.7
)
(34.8
)
Investments in equity securities and
equity method joint ventures
(1.5
)
(6.5
)
Return of beneficial interest in a
securitization
(380.0
)
(210.0
)
Collection on beneficial interest in a
securitization
405.0
330.0
Proceeds from disposition of business
121.4
—
Other investing activities, net
1.1
1.5
Net cash provided by investing
activities
114.3
80.2
Cash flows from financing
activities
Shares repurchased for payment of employee
taxes on stock awards
(10.2
)
(7.7
)
Payment of deferred and contingent
consideration
(17.9
)
(13.8
)
Proceeds from borrowings
—
2,400.0
Repayment of borrowings
(150.0
)
(2,402.5
)
Debt issuance costs
—
(65.4
)
Payment of finance lease liabilities
(20.5
)
(19.8
)
Other financing activities, net
1.1
2.1
Net cash used in financing activities
(197.5
)
(107.1
)
Change in cash, cash equivalents and
restricted cash
9.6
(77.1
)
Cash, cash equivalents and restricted
cash, beginning of the period
801.2
719.0
Effects of exchange rate fluctuations on
cash, cash equivalents and restricted cash
2.1
(6.6
)
Cash, cash equivalents and restricted
cash, end of the period
$
812.9
$
635.3
Segment Results
The following tables summarize the results of operations for the
Company’s segments for the three and nine months ended September
30, 2024 and 2023.
Americas Results
Three Months Ended September
30,
Nine Months Ended September
30,
(in millions) (unaudited)
2024
2023
% Change in USD
% Change in Local
Currency
2024
2023
% Change in USD
% Change in Local
Currency
Revenue:
Services
$
605.4
$
611.7
(1
)%
0
%
$
1,811.2
$
1,869.1
(3
)%
(3
)%
Leasing
396.0
341.1
16
%
16
%
1,047.8
981.8
7
%
7
%
Capital markets
138.5
136.2
2
%
2
%
381.9
418.4
(9
)%
(9
)%
Valuation and other
38.8
31.2
24
%
26
%
113.0
103.1
10
%
11
%
Total service line fee revenue(1)
1,178.7
1,120.2
5
%
6
%
3,353.9
3,372.4
(1
)%
0
%
Gross contract reimbursables(2)
571.8
581.7
(2
)%
(1
)%
1,731.2
1,886.6
(8
)%
(8
)%
Total revenue
$
1,750.5
$
1,701.9
3
%
3
%
$
5,085.1
$
5,259.0
(3
)%
(3
)%
Costs and expenses:
Americas Fee-based operating expenses
$
1,071.6
$
1,017.2
5
%
6
%
$
3,091.1
$
3,110.4
(1
)%
0
%
Cost of gross contract reimbursables
571.8
581.7
(2
)%
(1
)%
1,731.2
1,886.6
(8
)%
(8
)%
Segment operating expenses
$
1,643.4
$
1,598.9
3
%
3
%
$
4,822.3
$
4,997.0
(3
)%
(3
)%
Net income (loss)
$
41.2
$
20.8
98
%
97
%
$
42.0
$
(10.1
)
n.m.
n.m.
Adjusted EBITDA
$
111.3
$
117.4
(5
)%
(5
)%
$
284.7
$
290.4
(2
)%
(2
)%
n.m. not meaningful
(1) Service line fee revenue represents
revenue for fees generated from each of our service lines.
(2) Gross contract reimbursables reflects
revenue from clients which have substantially no margin.
EMEA Results
Three Months Ended September
30,
Nine Months Ended September
30,
(in millions) (unaudited)
2024
2023
% Change in USD
% Change in Local
Currency
2024
2023
% Change in USD
% Change in Local
Currency
Revenue:
Services
$
78.2
$
98.9
(21
)%
(22
)%
$
239.2
$
280.0
(15
)%
(16
)%
Leasing
50.7
54.0
(6
)%
(8
)%
158.2
148.5
7
%
5
%
Capital markets
20.2
20.8
(3
)%
(5
)%
54.9
52.4
5
%
3
%
Valuation and other
42.0
39.1
7
%
5
%
126.3
122.9
3
%
1
%
Total service line fee revenue(1)
191.1
212.8
(10
)%
(12
)%
578.6
603.8
(4
)%
(5
)%
Gross contract reimbursables(2)
28.8
29.1
(1
)%
(3
)%
85.5
83.2
3
%
1
%
Total revenue
$
219.9
$
241.9
(9
)%
(11
)%
$
664.1
$
687.0
(3
)%
(5
)%
Costs and expenses:
EMEA Fee-based operating expenses
$
177.0
$
191.9
(8
)%
(10
)%
$
544.1
$
568.9
(4
)%
(6
)%
Cost of gross contract reimbursables
28.8
29.1
(1
)%
(3
)%
85.5
83.2
3
%
1
%
Segment operating expenses
$
205.8
$
221.0
(7
)%
(9
)%
$
629.6
$
652.1
(3
)%
(5
)%
Net loss
$
(13.5
)
$
(36.0
)
(63
)%
(63
)%
$
(28.5
)
$
(65.5
)
(56
)%
(56
)%
Adjusted EBITDA
$
12.4
$
16.6
(25
)%
(28
)%
$
34.6
$
31.4
10
%
10
%
(1) Service line fee revenue represents
revenue for fees generated from each of our service lines.
(2) Gross contract reimbursables reflects
revenue from clients which have substantially no margin.
APAC Results
Three Months Ended September
30,
Nine Months Ended September
30,
(in millions) (unaudited)
2024
2023
% Change in USD
% Change in Local
Currency
2024
2023
% Change in USD
% Change in Local
Currency
Revenue:
Services
$
181.6
$
168.2
8
%
6
%
$
550.2
$
515.6
7
%
7
%
Leasing
46.0
40.6
13
%
13
%
118.7
109.7
8
%
10
%
Capital markets
10.8
19.3
(44
)%
(44
)%
37.5
40.2
(7
)%
(3
)%
Valuation and other
24.4
27.0
(10
)%
(10
)%
74.9
83.3
(10
)%
(9
)%
Total service line fee revenue(1)
262.8
255.1
3
%
2
%
781.3
748.8
4
%
5
%
Gross contract reimbursables(2)
111.0
87.1
27
%
26
%
286.5
246.5
16
%
17
%
Total revenue
$
373.8
$
342.2
9
%
8
%
$
1,067.8
$
995.3
7
%
8
%
Costs and expenses:
APAC Fee-based operating expenses
$
251.5
$
243.7
3
%
2
%
$
754.3
$
730.6
3
%
4
%
Cost of gross contract reimbursables
111.0
87.1
27
%
26
%
286.5
246.5
16
%
17
%
Segment operating expenses
$
362.5
$
330.8
10
%
8
%
$
1,040.8
$
977.1
7
%
7
%
Net income (loss)
$
6.0
$
(18.7
)
n.m.
n.m.
$
4.9
$
(29.6
)
n.m.
n.m.
Adjusted EBITDA
$
18.8
$
16.0
18
%
15
%
$
40.2
$
35.2
14
%
16
%
n.m. not meaningful
(1) Service line fee revenue represents
revenue for fees generated from each of our service lines.
(2) Gross contract reimbursables reflects
revenue from clients which have substantially no margin.
Cushman & Wakefield plc
Use of Non-GAAP Financial Measures
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.
Segment operating expenses and Fee-based
operating expenses;
iii.
Adjusted net income and Adjusted earnings
per share;
iv.
Free cash flow;
v.
Local currency; and
vi.
Net debt.
Management principally uses these non-GAAP financial measures to
evaluate operating performance, develop budgets and forecasts,
improve comparability of results and assist our investors in
analyzing the underlying performance of our business. These
measures are not recognized measurements under GAAP. When analyzing
our operating results, investors should use them in addition to,
but not as an alternative for, the most directly comparable
financial results calculated and presented in accordance with GAAP.
Because the Company’s calculation of these non-GAAP financial
measures may differ from other companies, our presentation of these
measures may not be comparable to similarly titled measures of
other companies.
The Company believes that these measures provide a more complete
understanding of ongoing operations, enhance comparability of
current results to prior periods and may be useful for investors to
analyze our financial performance. The measures eliminate the
impact of certain items that may obscure trends in the underlying
performance of our business. The Company believes that they are
useful to investors for the additional purposes described
below.
Adjusted EBITDA and Adjusted EBITDA
margin: We have determined Adjusted EBITDA to be our primary
measure of segment profitability. We believe that investors find
this measure useful in comparing our operating performance to that
of other companies in our industry because these calculations
generally eliminate unrealized (gain) loss on investments, net,
loss on dispositions, integration and other costs related to
merger, acquisition related costs and efficiency initiatives, cost
savings initiatives, CEO transition costs, servicing liability fees
and amortization, certain legal and compliance matters, gains from
insurance proceeds and other non-recurring items. Adjusted EBITDA
also excludes the effects of financings, income tax and the
non-cash accounting effects of depreciation and intangible asset
amortization. Adjusted EBITDA margin, a non-GAAP measure of
profitability as a percent of revenue, is measured against service
line fee revenue.
Segment operating expenses and Fee-based
operating expenses: Consistent with GAAP, reimbursed costs
for certain customer contracts are presented on a gross basis in
both revenue and operating expenses for which the Company
recognizes substantially no margin. Total costs and expenses
include segment operating expenses, as well as other expenses such
as depreciation and amortization, loss on dispositions, integration
and other costs related to merger, acquisition related costs and
efficiency initiatives, cost savings initiatives, CEO transition
costs, servicing liability fees and amortization, certain legal and
compliance matters and other non-recurring items. Segment operating
expenses includes Fee-based operating expenses and Cost of gross
contract reimbursables. We believe Fee-based operating expenses
more accurately reflects the costs we incur during the course of
delivering services to our clients and is more consistent with how
we manage our expense base and operating margins.
Adjusted net income and Adjusted earnings
per share: Management also assesses the profitability of the
business using Adjusted net income. We believe that investors find
this measure useful in comparing our profitability to that of other
companies in our industry because this calculation generally
eliminates depreciation and amortization related to merger,
unrealized (gain) loss on investments, net, financing and other
facility fees, loss on dispositions, integration and other costs
related to merger, acquisition related costs and efficiency
initiatives, cost savings initiatives, CEO transition costs,
servicing liability fees and amortization, certain legal and
compliance matters, gains from insurance proceeds and other
non-recurring items. Income tax, as adjusted, reflects management’s
expectation about our long-term effective rate as a public company.
The Company also uses Adjusted earnings per share (“EPS”) as a
component when measuring operating performance. Management defines
Adjusted EPS as Adjusted net income divided by total basic and
diluted weighted average shares outstanding.
Free cash flow: Free cash flow is a
financial performance metric that is calculated as net cash
provided by (used in) operating activities, less capital
expenditures (reflected as Payment for property and equipment in
the investing section of the Condensed Consolidated Statements of
Cash Flows).
Local currency: In discussing our
results, we refer to percentage changes in local currency. These
metrics are calculated by holding foreign currency exchange rates
constant in year-over-year comparisons. Management believes that
this methodology provides investors with greater visibility into
the performance of our business excluding the effect of foreign
currency rate fluctuations.
Net debt: Net debt is used as a
measure of our liquidity and is calculated as total debt minus cash
and cash equivalents.
Adjustments to U.S. GAAP Financial
Measures Used to Calculate Non-GAAP Financial
Measures
During the periods presented in this earnings release, we had
the following adjustments:
Unrealized (gain) loss on investments, net represents net
unrealized gains and losses on fair value investments. Prior to
2024, this primarily reflected unrealized losses on our investment
in WeWork.
Loss on dispositions reflects losses on the sale or disposition
of businesses as well as other transaction costs associated with
the sales, which are not indicative of our core operating results
given the low frequency of business dispositions by the
Company.
Integration and other costs related to merger reflects the
non-cash amortization expense of certain merger related retention
awards that will be amortized through 2026, and the non-cash
amortization expense of merger related deferred rent and tenant
incentives which will be amortized through 2028.
Acquisition related costs and efficiency initiatives includes
internal and external consulting costs incurred to implement
certain distinct operating efficiency initiatives designed to
realign our organization to be a more agile partner to our clients.
These initiatives vary in frequency, amount and occurrence based on
factors specific to each initiative. In addition, this includes
certain direct costs incurred in connection with acquiring
businesses.
Cost savings initiatives primarily reflects severance and other
one-time employment-related separation costs related to actions to
reduce headcount across select roles to help optimize our workforce
given the challenging macroeconomic conditions and operating
environment, as well as property lease rationalizations. These
actions continued through September 30, 2024.
CEO transition costs in 2024 reflects certain payroll taxes
associated with compensation for John Forrester, the Company’s
former Chief Executive Officer (“CEO”). In 2023, CEO transition
costs reflects accelerated stock-based compensation expense
associated with stock awards granted to Mr. Forrester, who stepped
down from the position of CEO as of June 30, 2023, but who remained
employed by the Company as a Strategic Advisor until December 31,
2023. The requisite service period under the applicable award
agreements was satisfied upon Mr. Forrester’s retirement from the
Company on December 31, 2023. In 2023, CEO transition costs also
included Mr. Forrester’s salary and bonus accruals for the third
quarter of 2023. We believe the accelerated stock-based
compensation expense, salary and bonus accruals, as well as the
payroll taxes associated with such compensation, are similar in
nature to one-time severance benefits and are not normal, recurring
operating expenses necessary to operate the business.
Servicing liability fees and amortization reflects the
additional non-cash servicing liability fees accrued in connection
with the A/R Securitization amendments in prior years. The
liability will be amortized through June 2026.
Legal and compliance matters includes estimated losses and
settlements for certain legal matters which are not considered
ordinary course legal matters given the infrequency of similar
cases brought against the Company, complexity of the matter, nature
of the remedies sought and/or our overall litigation strategy. We
exclude such losses from the calculation of Adjusted EBITDA to
improve the comparability of our operating results for the current
period to prior and future periods.
Gains from insurance proceeds represents one-time gains related
to certain contingent events, such as insurance recoveries, which
are not considered ordinary course and which are only recorded once
realized or realizable, net of related legal fees. We exclude such
net gains from the calculation of Adjusted EBITDA to improve the
comparability of our operating results for the current period to
prior and future periods.
The interim financial information for the three and nine months
ended September 30, 2024 and 2023 is unaudited. All adjustments,
consisting of normal recurring adjustments, except as otherwise
noted, considered necessary for a fair presentation of the
unaudited interim condensed consolidated financial information for
these periods have been included. Users of all of the
aforementioned unaudited interim financial information should refer
to the audited Consolidated Financial Statements of the Company and
notes thereto for the year ended December 31, 2023 in the Company’s
2023 Annual Report on Form 10-K.
Please see the following tables for reconciliations of our
non-GAAP financial measures to the most closely comparable GAAP
measures.
Reconciliations of Non-GAAP financial
measures
Reconciliation of Net income (loss) to Adjusted EBITDA:
Three Months Ended September
30,
Nine Months Ended September
30,
(in millions) (unaudited)
2024
2023
2024
2023
Net income (loss)
$
33.7
$
(33.9
)
$
18.4
$
(105.2
)
Adjustments:
Depreciation and amortization
28.9
36.2
92.6
108.8
Interest expense, net of interest
income
54.9
89.5
174.4
224.2
Provision for income taxes
19.3
16.6
25.3
5.1
Unrealized (gain) loss on investments,
net
(0.9
)
4.0
0.8
22.9
Loss on dispositions
5.5
—
19.5
1.8
Integration and other costs related to
merger
1.1
2.4
3.9
6.8
Acquisition related costs and efficiency
initiatives
—
—
—
11.7
Cost savings initiatives
11.5
14.2
28.9
41.4
CEO transition costs
—
3.2
1.9
5.5
Servicing liability fees and
amortization
(0.5
)
0.7
(1.4
)
12.3
Legal and compliance matters
—
14.1
—
14.1
Gain from insurance proceeds, net of legal
fees
(16.5
)
—
(16.5
)
1.1
Other(1)
5.5
3.0
11.7
6.5
Adjusted EBITDA
$
142.5
$
150.0
$
359.5
$
357.0
(1)
For the three months ended September 30,
2024, Other primarily reflects one-time consulting costs associated
with the Company rebranding and discrete offshoring costs. For the
nine months ended September 30, 2024, Other also includes non-cash
stock-based compensation expense associated with certain one-time
retention awards which vested in February 2024, bad debt expense
driven by a sublessee default and one-time consulting costs
associated with a secondary offering of our ordinary shares by our
former shareholders. For the three and nine months ended September
30, 2023, Other primarily reflects non-cash stock-based
compensation expense associated with certain one-time retention
awards and one-time consulting costs associated with certain legal
entity reorganization projects.
Summary of Total costs and expenses:
Three Months Ended September
30,
Nine Months Ended September
30,
(in millions) (unaudited)
2024
2023
2024
2023
Americas Fee-based operating expenses
$
1,071.6
$
1,017.2
$
3,091.1
$
3,110.4
EMEA Fee-based operating expenses
177.0
191.9
544.1
568.9
APAC Fee-based operating expenses
251.5
243.7
754.3
730.6
Cost of gross contract reimbursables
711.6
697.9
2,103.2
2,216.3
Segment operating expenses
2,211.7
2,150.7
6,492.7
6,626.2
Depreciation and amortization
28.9
36.2
92.6
108.8
Loss on dispositions
5.5
—
19.5
1.8
Integration and other costs related to
merger
1.1
2.4
3.9
6.8
Acquisition related costs and efficiency
initiatives
—
—
—
11.7
Cost savings initiatives
11.5
14.2
28.9
41.4
CEO transition costs
—
3.2
1.9
5.5
Servicing liability fees and
amortization
(0.5
)
0.7
(1.4
)
12.3
Legal and compliance matters
—
14.1
—
14.1
Other, including foreign currency
movements(1)
10.8
6.9
14.5
17.1
Total costs and expenses
$
2,269.0
$
2,228.4
$
6,652.6
$
6,845.7
(1)
For the three months ended September 30,
2024, Other primarily reflects one-time consulting costs associated
with the Company rebranding, discrete offshoring costs and the
effects of movements in foreign currency. For the nine months ended
September 30, 2024, Other also includes non-cash stock-based
compensation expense associated with certain one-time retention
awards which vested in February 2024, bad debt expense driven by a
sublessee default and one-time consulting costs associated with a
secondary offering of our ordinary shares by our former
shareholders. For the three and nine months ended September 30,
2023, Other primarily reflects non-cash stock-based compensation
expense associated with certain one-time retention awards, one-time
consulting costs associated with certain legal entity
reorganization projects and the effects of movements in foreign
currency.
Reconciliation of Net income (loss) to Adjusted net income:
Three Months Ended September
30,
Nine Months Ended September
30,
(in millions, except per share data)
(unaudited)
2024
2023
2024
2023
Net income (loss)
$
33.7
$
(33.9
)
$
18.4
$
(105.2
)
Add/(less):
Merger and acquisition related
depreciation and amortization
10.8
16.9
37.5
52.7
Unrealized (gain) loss on investments,
net
(0.9
)
4.0
0.8
22.9
Financing and other facility fees(1)
—
29.0
2.9
50.6
Loss on dispositions
5.5
—
19.5
1.8
Integration and other costs related to
merger
1.1
2.4
3.9
6.8
Acquisition related costs and efficiency
initiatives
—
—
—
11.7
Cost savings initiatives
11.5
14.2
28.9
41.4
CEO transition costs
—
3.2
1.9
5.5
Servicing liability fees and
amortization
(0.5
)
0.7
(1.4
)
12.3
Legal and compliance matters
—
14.1
—
14.1
Gain from insurance proceeds, net of legal
fees
(16.5
)
—
(16.5
)
1.1
Other
5.5
3.0
11.7
6.5
Tax impact of adjusted items(2)
2.4
(5.6
)
(8.7
)
(33.1
)
Adjusted net income
$
52.6
$
48.0
$
98.9
$
89.1
Weighted average shares outstanding,
basic
229.3
227.2
228.7
226.9
Weighted average shares outstanding,
diluted(3)
233.4
227.7
232.1
227.4
Adjusted earnings per share, basic
$
0.23
$
0.21
$
0.43
$
0.39
Adjusted earnings per share,
diluted(3)
$
0.23
$
0.21
$
0.43
$
0.39
(1)
Financing and other facility fees reflects
costs related to the refinancing of a portion of the borrowings
under our 2018 Credit Agreement, including $2.9 million of new
transaction costs expensed directly in the second quarter of 2024,
and an aggregate loss on debt extinguishment of $41.9 million and
$8.7 million of new transaction costs expensed directly in
2023.
(2)
Reflective of management’s estimation of
an adjusted effective tax rate of 24% and 32% for the three months
ended September 30, 2024 and 2023, respectively, and 26% and 30%
for the nine months ended September 30, 2024 and 2023,
respectively.
(3)
Weighted average shares outstanding,
diluted is calculated by taking basic weighted average shares
outstanding and adding dilutive shares of 4.1 million and 0.5
million for the three months ended September 30, 2024 and 2023,
respectively, and dilutive shares of 3.4 million and 0.5 million
for the nine months ended September 30, 2024 and 2023,
respectively.
Reconciliation of Net cash provided by (used in) operating
activities to Free cash flow:
Nine Months Ended September
30,
(in millions) (unaudited)
2024
2023
Net cash provided by (used in) operating
activities
$
92.8
$
(50.2
)
Payment for property and equipment
(31.7
)
(34.8
)
Free cash flow
$
61.1
$
(85.0
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241104122747/en/
INVESTOR RELATIONS Megan McGrath Investor
Relations +1 312 338 7860 IR@cushwake.com
MEDIA CONTACT Aixa Velez Corporate Communications
+1 312 424 8195 aixa.velez@cushwake.com
Cushman and Wakefield (NYSE:CWK)
過去 株価チャート
から 12 2024 まで 1 2025
Cushman and Wakefield (NYSE:CWK)
過去 株価チャート
から 1 2024 まで 1 2025