Cushman & Wakefield Reports Financial Results for First Quarter 2021

Rhea-AI Summary

Cushman & Wakefield (NYSE: CWK) reported Q1 2021 revenue of $1.9 billion, a 1% increase year-over-year. Fee revenue reached $1.3 billion, also up 1%. Adjusted EBITDA surged 42% to $99.7 million, with a margin of 7.5%. Despite a net loss of $17.2 million or $0.08 per share, the company achieved $60 million in savings. With $2.0 billion in liquidity, including $1.0 billion in cash, the firm is poised for growth amid recovering market conditions.

Positive

• Revenue increased by 1% to $1.9 billion.
• Adjusted EBITDA rose 42% to $99.7 million.
• Achieved $60 million in savings during the quarter.
• Strong liquidity position with $2.0 billion available.

Negative

• Net loss of $17.2 million and loss per share of $0.08.
• Fee revenue growth was only 1%, down 1% in local currency.
• Leasing and capital markets revenue decreased by 3% and 9%, respectively.

Cushman & Wakefield (NYSE: CWK) today reported financial results for the first quarter ended March 31, 2021:

• Revenue for the first quarter of 2021 of $1.9 billion was up 1% (down 1% local currencyⁱ) from the first quarter of 2020. Fee revenue of $1.3 billion was up 1% (down 1% local currency) versus the prior year.
  • Fee revenue better than expected across all segments and service lines, especially Americas brokerage
  • Property, facilities and project management and Valuation and other was stable, fee revenue up low single digits on local currency basis versus prior year
• Net loss and loss per share for the first quarter of 2021 were $17.2 million and $0.08, respectively. Adjusted earnings per share was $0.11.
• Adjusted EBITDA was $99.7 million, up 42% (38% local currency) from the first quarter of 2020.
• Adjusted EBITDA margin of 7.5% expanded 215 basis points from the first quarter of 2020.
• Generated $60 million of savings for the first quarter including both permanent cost reduction actions and continued tight management of discretionary expenses.
• Significant liquidity as of the end of March 2021 of $2.0 billion consisting of cash on hand of $1.0 billion and availability under the Company's undrawn revolving credit facility of $1.0 billion.

“We are off to a very strong start to 2021 with better than expected revenue as clients continue to turn to Cushman & Wakefield for our expert advice and differentiated service offering. Our focus remains on leading the industry through this recovery while also operating efficiently throughout our global portfolio of diversified services. We remain well-positioned with a strong balance sheet and significant liquidity to take advantage of growth opportunities during what we anticipate will be an uneven market rebound,” said Brett White, Executive Chairman & CEO.

Consolidated Results (unaudited)

(in millions)		Three Months Ended March 31, 2021					Three Months Ended March 31, 2020					% Change in USD				% Change in Local Currency
Revenue:
Property, facilities and project management		$	768.1				$	732.1				5		%		2		%
Leasing		291.7					301.8					(3	)	%		(5	)	%
Capital markets		166.4					182.1					(9	)	%		(10	)	%
Valuation and other		111.4					104.4					7		%		2		%
Total service line fee revenue(1)		1,337.6					1,320.4					1		%		(1	)	%
Gross contract reimbursables(2)		586.2					575.0					2		%		—		%
Total revenue		$	1,923.8				$	1,895.4				1		%		(1	)	%
Costs and expenses:
Cost of services provided to clients		$	1,003.3				$	1,023.8				(2	)	%		(4	)	%
Cost of gross contract reimbursables		586.2					575.0					2		%		—		%
Total costs of services		1,589.5					1,598.8					(1	)	%		(3	)	%
Operating, administrative and other		280.8					284.0					(1	)	%		(3	)	%
Depreciation and amortization		43.1					72.0					(40	)	%		(41	)	%
Restructuring, impairment and related charges		17.6					26.1					(33	)	%		(34	)	%
Total costs and expenses		1,931.0					1,980.9					(3

FAQ

What were Cushman & Wakefield's earnings results for Q1 2021?

Cushman & Wakefield reported a net loss of $17.2 million and adjusted earnings per share of $0.11 for Q1 2021.

How did revenue perform for CWK in Q1 2021?

CWK's revenue for Q1 2021 was $1.9 billion, reflecting a 1% increase compared to Q1 2020.

What is CWK's outlook based on the latest earnings report?

Cushman & Wakefield anticipates an uneven market rebound but is well-positioned for growth with significant liquidity.