Cushman & Wakefield Reports Financial Results for the Fourth Quarter and Full Year 2024
Cushman & Wakefield (NYSE: CWK) reported strong Q4 2024 results with revenue of $2.6 billion, up 3% year-over-year. The company saw significant growth in Capital markets revenue (35%) and Leasing revenue (6%), while Services revenue declined 3%.
Q4 net income reached $112.9 million ($0.48 per share), up from $69.8 million ($0.30 per share) in Q4 2023. Adjusted EBITDA increased 4% to $222.3 million, with a margin of 11.9%.
For full-year 2024, revenue slightly decreased to $9.4 billion, but net income improved significantly to $131.3 million compared to a $35.4 million loss in 2023. Free cash flow generated was $167.0 million, an increase of $65.8 million from 2023. The company maintained strong liquidity of $1.9 billion, including $0.8 billion in cash and $1.1 billion in undrawn credit facility.
Cushman & Wakefield (NYSE: CWK) ha riportato risultati solidi per il quarto trimestre del 2024, con un fatturato di 2,6 miliardi di dollari, in aumento del 3% rispetto all'anno precedente. L'azienda ha registrato una crescita significativa nel fatturato dei mercati di capitale (35%) e nel fatturato da locazione (6%), mentre il fatturato dei servizi è diminuito del 3%.
Il reddito netto del quarto trimestre ha raggiunto 112,9 milioni di dollari (0,48 dollari per azione), in aumento rispetto ai 69,8 milioni di dollari (0,30 dollari per azione) del quarto trimestre del 2023. L'EBITDA rettificato è aumentato del 4% a 222,3 milioni di dollari, con un margine dell'11,9%.
Per l'intero anno 2024, il fatturato è leggermente diminuito a 9,4 miliardi di dollari, ma il reddito netto è migliorato significativamente a 131,3 milioni di dollari rispetto a una perdita di 35,4 milioni di dollari nel 2023. Il flusso di cassa libero generato è stato di 167,0 milioni di dollari, un aumento di 65,8 milioni di dollari rispetto al 2023. L'azienda ha mantenuto una forte liquidità di 1,9 miliardi di dollari, di cui 0,8 miliardi di dollari in contante e 1,1 miliardi di dollari in linee di credito non utilizzate.
Cushman & Wakefield (NYSE: CWK) informó resultados sólidos para el cuarto trimestre de 2024, con ingresos de 2.6 mil millones de dólares, un aumento del 3% en comparación con el año anterior. La compañía experimentó un crecimiento significativo en los ingresos de mercados de capital (35%) y en los ingresos por arrendamiento (6%), mientras que los ingresos por servicios disminuyeron un 3%.
El ingreso neto del cuarto trimestre alcanzó los 112.9 millones de dólares (0.48 dólares por acción), en comparación con los 69.8 millones de dólares (0.30 dólares por acción) del cuarto trimestre de 2023. El EBITDA ajustado aumentó un 4% a 222.3 millones de dólares, con un margen del 11.9%.
Para el año completo de 2024, los ingresos disminuyeron ligeramente a 9.4 mil millones de dólares, pero el ingreso neto mejoró significativamente a 131.3 millones de dólares en comparación con una pérdida de 35.4 millones de dólares en 2023. El flujo de caja libre generado fue de 167.0 millones de dólares, un aumento de 65.8 millones de dólares en comparación con 2023. La compañía mantuvo una sólida liquidez de 1.9 mil millones de dólares, incluyendo 0.8 mil millones de dólares en efectivo y 1.1 mil millones de dólares en líneas de crédito no utilizadas.
Cushman & Wakefield (NYSE: CWK)는 2024년 4분기 결과로 26억 달러의 매출을 보고하며 전년 대비 3% 증가했다고 발표했습니다. 회사는 자본 시장 수익(35%)과 임대 수익(6%)에서 상당한 성장을 보인 반면, 서비스 수익은 3% 감소했습니다.
4분기 순이익은 1억 1,290만 달러(주당 0.48 달러)에 도달하여, 2023년 4분기의 6,980만 달러(주당 0.30 달러)에서 증가했습니다. 조정된 EBITDA는 4% 증가하여 2억 2,230만 달러에 도달했으며, 마진은 11.9%입니다.
2024년 전체 연도에 대해 매출은 94억 달러로 약간 감소했지만, 순이익은 1억 3,130만 달러로 크게 개선되었습니다. 이는 2023년의 3,540만 달러 손실과 비교됩니다. 생성된 자유 현금 흐름은 1억 6,700만 달러로, 2023년 대비 6,580만 달러 증가했습니다. 회사는 19억 달러의 강력한 유동성을 유지하고 있으며, 여기에는 8억 달러의 현금과 11억 달러의 미사용 신용 한도가 포함됩니다.
Cushman & Wakefield (NYSE: CWK) a annoncé des résultats solides pour le quatrième trimestre de 2024, avec un chiffre d'affaires de 2,6 milliards de dollars, en hausse de 3 % par rapport à l'année précédente. L'entreprise a connu une croissance significative des revenus des marchés de capitaux (35 %) et des revenus de location (6 %), tandis que les revenus des services ont diminué de 3 %.
Le bénéfice net du quatrième trimestre a atteint 112,9 millions de dollars (0,48 dollar par action), contre 69,8 millions de dollars (0,30 dollar par action) au quatrième trimestre 2023. L'EBITDA ajusté a augmenté de 4 % pour atteindre 222,3 millions de dollars, avec une marge de 11,9 %.
Pour l'année 2024 dans son ensemble, le chiffre d'affaires a légèrement diminué à 9,4 milliards de dollars, mais le bénéfice net s'est considérablement amélioré, atteignant 131,3 millions de dollars par rapport à une perte de 35,4 millions de dollars en 2023. Le flux de trésorerie disponible généré était de 167,0 millions de dollars, soit une augmentation de 65,8 millions de dollars par rapport à 2023. L'entreprise a maintenu une solide liquidité de 1,9 milliard de dollars, dont 800 millions de dollars en liquidités et 1,1 milliard de dollars en lignes de crédit non utilisées.
Cushman & Wakefield (NYSE: CWK) berichtete über starke Ergebnisse für das vierte Quartal 2024 mit einem Umsatz von 2,6 Milliarden Dollar, was einem Anstieg von 3 % im Vergleich zum Vorjahr entspricht. Das Unternehmen verzeichnete ein signifikantes Wachstum im Umsatz der Kapitalmärkte (35 %) und im Leasing-Umsatz (6 %), während der Umsatz aus Dienstleistungen um 3 % zurückging.
Der Nettogewinn im vierten Quartal erreichte 112,9 Millionen Dollar (0,48 Dollar pro Aktie), ein Anstieg von 69,8 Millionen Dollar (0,30 Dollar pro Aktie) im vierten Quartal 2023. Das bereinigte EBITDA stieg um 4 % auf 222,3 Millionen Dollar mit einer Marge von 11,9 %.
Für das Gesamtjahr 2024 verringerte sich der Umsatz leicht auf 9,4 Milliarden Dollar, während der Nettogewinn im Vergleich zu einem Verlust von 35,4 Millionen Dollar im Jahr 2023 erheblich auf 131,3 Millionen Dollar verbesserte. Der generierte freie Cashflow betrug 167,0 Millionen Dollar, was einem Anstieg von 65,8 Millionen Dollar im Vergleich zu 2023 entspricht. Das Unternehmen hielt eine starke Liquidität von 1,9 Milliarden Dollar aufrecht, einschließlich 800 Millionen Dollar in bar und 1,1 Milliarden Dollar in nicht in Anspruch genommenen Kreditlinien.
- Capital markets revenue grew 35% in Q4 2024
- Q4 net income increased by $43.1 million to $112.9 million
- Full-year net income improved by $166.7 million from 2023 loss
- Free cash flow improved by $65.8 million year-over-year
- Strong liquidity position of $1.9 billion
- Full-year revenue declined by $47.2 million to $9.4 billion
- Services revenue decreased 3% in Q4 2024
- Project management revenue declined by $20 million in Q4
- Earnings from equity method investments decreased by $20.7 million in 2024
Insights
The Q4 2024 results reveal a significant turnaround in Cushman & Wakefield's business momentum, particularly evidenced by the 35% surge in Capital markets revenue - the strongest growth since Q1 2022. This acceleration signals improving investor confidence and stabilizing market conditions, especially notable given the previous quarters' challenging environment.
The company's operational performance shows remarkable resilience, with net income reaching $112.9M in Q4, representing a 61.7% year-over-year increase. This improvement stems from both revenue growth and operational efficiency, with the cost-saving initiatives yielding tangible results in reducing operating expenses.
A particularly compelling indicator of financial health is the $65.8M improvement in free cash flow, reaching $167.0M for the full year. This enhancement in cash generation capability strengthens the company's financial flexibility and ability to invest in growth opportunities while maintaining a robust $1.9B liquidity position.
The company's strategic debt management, including the January 2025 repricing of $1.0B in term loans, demonstrates proactive financial stewardship, reducing interest expenses and optimizing the capital structure. The 25 basis point reduction in interest rates will contribute to improved profitability in 2025.
The sustained growth in Leasing revenue, marking the fifth consecutive quarter of year-over-year increases, underscores the resilience of core business operations despite market uncertainties. The 6% growth in Q4 Leasing revenue, primarily driven by office sector activity in the Americas, suggests improving occupier confidence and potential stabilization in the commercial real estate market.
Strong global Capital markets revenue growth of
Fifth consecutive quarter of year-over-year global Leasing growth
Net cash flow from operations and free cash flow for the full year both improved by more than
“We closed out 2024 with strong momentum in our business, reporting another quarter of solid Leasing revenue, our strongest Capital markets growth since the first quarter of 2022 and robust year-over-year improvement in free cash flow,” said Michelle MacKay, Chief Executive Officer of Cushman & Wakefield. “We begin 2025 with renewed optimism, as investor and occupier sentiment continues to improve, and we have positioned ourselves to thrive in what we believe will be a multi-year commercial real estate growth cycle.”
Fourth Quarter Results:
-
Revenue of
$2.6 billion 3% from the fourth quarter of 2023.-
Leasing revenue increased
6% driven primarily by office leasing in theAmericas . -
Capital markets revenue increased
35% driven by strong results in all segments. -
Services and Valuation and other revenue declined
3% and1% , respectively.
-
Leasing revenue increased
-
Net income of
$112.9 million $43.1 million $0.48 $0.30 -
Adjusted EBITDA of
$222.3 million 4% from the fourth quarter of 2023, with Adjusted EBITDA margin of11.9% relatively flat compared to the fourth quarter of 2023. -
Adjusted diluted earnings per share of
$0.48 $0.45
-
Adjusted EBITDA of
Full Year Results:
-
Revenue of
$9.4 billion $47.2 million -
Leasing revenue increased
7% driven by office and industrial leasing in theAmericas and APAC. -
Capital markets revenue increased
4% driven by the industrial, retail and office sectors and across all segments. -
Valuation and other revenue increased
1% and Services revenue declined3% .
-
Leasing revenue increased
-
Net income of
$131.3 million $166.7 million $35.4 million $0.56 $0.16 -
Adjusted EBITDA of
$581.9 million 2% from the year ended December 31, 2023, with Adjusted EBITDA margin of8.8% relatively flat compared to the prior year. -
Adjusted diluted earnings per share of
$0.91 $0.84
-
Adjusted EBITDA of
-
Net cash provided by operating activities was
$208.0 million -
Free cash flow generated for the year ended December 31, 2024 of
$167.0 million $65.8 million
-
Free cash flow generated for the year ended December 31, 2024 of
-
Liquidity as of December 31, 2024 was
$1.9 billion $1.1 billion $0.8 billion
Consolidated Results (unaudited) |
|||||||||||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||||||||
(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 |
$ |
879.6 |
|
$ |
908.5 |
|
(3 |
)% |
(3 |
)% |
|
$ |
3,480.1 |
|
$ |
3,573.0 |
|
(3 |
)% |
(2 |
)% |
Leasing |
|
622.7 |
|
|
586.7 |
|
6 |
% |
7 |
% |
|
|
1,947.5 |
|
|
1,826.7 |
|
7 |
% |
7 |
% |
Capital markets |
|
247.5 |
|
|
184.0 |
|
35 |
% |
36 |
% |
|
|
721.8 |
|
|
695.0 |
|
4 |
% |
4 |
% |
Valuation and other |
|
125.6 |
|
|
127.2 |
|
(1 |
)% |
(1 |
)% |
|
|
439.8 |
|
|
436.7 |
|
1 |
% |
1 |
% |
Total service line fee revenue(1) |
|
1,875.4 |
|
|
1,806.4 |
|
4 |
% |
4 |
% |
|
|
6,589.2 |
|
|
6,531.4 |
|
1 |
% |
1 |
% |
Gross contract reimbursables(2) |
|
754.1 |
|
|
746.0 |
|
1 |
% |
1 |
% |
|
|
2,857.3 |
|
|
2,962.3 |
|
(4 |
)% |
(3 |
)% |
Total revenue |
$ |
2,629.5 |
|
$ |
2,552.4 |
|
3 |
% |
4 |
% |
|
$ |
9,446.5 |
|
$ |
9,493.7 |
|
0 |
% |
0 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||||
Costs and expenses: |
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of services provided to clients |
$ |
1,347.0 |
|
$ |
1,327.8 |
|
1 |
% |
2 |
% |
|
$ |
4,862.9 |
|
$ |
4,879.3 |
|
0 |
% |
0 |
% |
Cost of gross contract reimbursables |
|
754.1 |
|
|
746.0 |
|
1 |
% |
1 |
% |
|
|
2,857.3 |
|
|
2,962.3 |
|
(4 |
)% |
(3 |
)% |
Total costs of services |
|
2,101.1 |
|
|
2,073.8 |
|
1 |
% |
2 |
% |
|
|
7,720.2 |
|
|
7,841.6 |
|
(2 |
)% |
(1 |
)% |
Operating, administrative and other |
|
319.7 |
|
|
317.1 |
|
1 |
% |
1 |
% |
|
|
1,224.1 |
|
|
1,262.8 |
|
(3 |
)% |
(3 |
)% |
Depreciation and amortization |
|
29.6 |
|
|
36.8 |
|
(20 |
)% |
(19 |
)% |
|
|
122.2 |
|
|
145.6 |
|
(16 |
)% |
(16 |
)% |
Restructuring, impairment and related charges |
|
4.6 |
|
|
14.7 |
|
(69 |
)% |
(67 |
)% |
|
|
41.1 |
|
|
38.1 |
|
8 |
% |
8 |
% |
Total costs and expenses |
|
2,455.0 |
|
|
2,442.4 |
|
1 |
% |
1 |
% |
|
|
9,107.6 |
|
|
9,288.1 |
|
(2 |
)% |
(2 |
)% |
Operating income |
|
174.5 |
|
|
110.0 |
|
59 |
% |
59 |
% |
|
|
338.9 |
|
|
205.6 |
|
65 |
% |
65 |
% |
Interest expense, net of interest income |
|
(55.5 |
) |
|
(56.9 |
) |
(2 |
)% |
(2 |
)% |
|
|
(229.9 |
) |
|
(281.1 |
) |
(18 |
)% |
(18 |
)% |
Earnings from equity method investments |
|
9.3 |
|
|
16.8 |
|
(45 |
)% |
(45 |
)% |
|
|
37.4 |
|
|
58.1 |
|
(36 |
)% |
(36 |
)% |
Other income (expense), net |
|
3.8 |
|
|
0.2 |
|
n.m. |
n.m. |
|
|
29.4 |
|
|
(12.6 |
) |
n.m. |
n.m. |
||||
Earnings (loss) before income taxes |
|
132.1 |
|
|
70.1 |
|
88 |
% |
89 |
% |
|
|
175.8 |
|
|
(30.0 |
) |
n.m. |
n.m. |
||
Provision for income taxes |
|
19.2 |
|
|
0.3 |
|
n.m. |
n.m. |
|
|
44.5 |
|
|
5.4 |
|
n.m. |
n.m. |
||||
Net income (loss) |
$ |
112.9 |
|
$ |
69.8 |
|
62 |
% |
61 |
% |
|
$ |
131.3 |
|
$ |
(35.4 |
) |
n.m. |
n.m. |
||
Net income (loss) margin |
|
4.3 |
% |
|
2.7 |
% |
|
|
|
|
1.4 |
% |
|
(0.4 |
)% |
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||||||
Adjusted EBITDA(3) |
$ |
222.3 |
|
$ |
213.1 |
|
4 |
% |
6 |
% |
|
$ |
581.9 |
|
$ |
570.1 |
|
2 |
% |
3 |
% |
Adjusted EBITDA margin(3) |
|
11.9 |
% |
|
11.8 |
% |
|
|
|
|
8.8 |
% |
|
8.7 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||||||
Adjusted net income(3) |
$ |
113.5 |
|
$ |
102.4 |
|
11 |
% |
|
|
$ |
212.5 |
|
$ |
191.5 |
|
11 |
% |
|
||
|
|
|
|
|
|
|
|
|
|
||||||||||||
Weighted average shares outstanding, basic |
|
229.5 |
|
|
227.2 |
|
|
|
|
|
228.9 |
|
|
226.9 |
|
|
|
||||
Weighted average shares outstanding, diluted(4) |
|
234.6 |
|
|
228.9 |
|
|
|
|
|
232.8 |
|
|
227.7 |
|
|
|
||||
Earnings (loss) per share, basic |
$ |
0.49 |
|
$ |
0.31 |
|
|
|
|
$ |
0.57 |
|
$ |
(0.16 |
) |
|
|
||||
Earnings (loss) per share, diluted |
$ |
0.48 |
|
$ |
0.30 |
|
|
|
|
$ |
0.56 |
|
$ |
(0.16 |
) |
|
|
||||
Adjusted earnings per share, diluted(3)(4) |
$ |
0.48 |
|
$ |
0.45 |
|
|
|
|
$ |
0.91 |
|
$ |
0.84 |
|
|
|
||||
| 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. |
Fourth Quarter Results (unaudited)
Revenue
Revenue of
Costs of services
Costs of services of
Operating, administrative and other
Operating, administrative and other expenses of
Restructuring, impairment and related charges
Restructuring, impairment and related charges of
Earnings from equity method investments
Earnings from equity method investments of
Provision for income taxes
Provision for income taxes for the fourth quarter of 2024 was
Net income and Adjusted EBITDA
Net income of
Adjusted EBITDA of
Full Year Results (unaudited)
Revenue
Revenue of
Costs of services
Costs of services of
Operating, administrative and other
Operating, administrative and other expenses of
Restructuring, impairment and related charges
Restructuring, impairment and related charges of
Interest expense, net of interest income
Interest expense of
Earnings from equity method investments
Earnings from equity method investments of
Other income (expense), net
Other income, net was
Provision for income taxes
Provision for income taxes for the year ended December 31, 2024 was
Net income (loss) and Adjusted EBITDA
Net income was
Adjusted EBITDA of
Balance Sheet
Liquidity at the end of the fourth quarter was
In January 2025, we repriced
Net debt as of December 31, 2024 was
Conference Call
The Company’s Fourth Quarter 2024 Earnings Conference Call will be held today, February 20, 2025, at 9:00 a.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 https://ir.cushmanwakefield.com.
The direct dial-in number for the conference call is 1-844-825-9789 for
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 60 countries. In 2024, the firm reported revenue of
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; our ability to preserve, grow and leverage the value of our brand; the concentration of business with specific corporate clients; 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 or other threats related to our information systems; our ability to comply with cybersecurity and data privacy regulations and other confidentiality obligations; the extent to which infrastructure disruptions may affect our ability to provide our services; our ability to compete globally, regionally and locally; the failure of our acquisitions and investments to perform as expected or the lack of similar future opportunities; 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; the failure of third parties performing on our behalf to comply with contract, regulatory or legal requirements; risks associated with the climate change, environmental reporting obligations and other environmental conditions; risks associated with sociopolitical polarization; social, geopolitical and economic risks associated with our international operations; foreign currency volatility; the seasonality of significant portions of our revenue and cash flow; 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; 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
Cushman & Wakefield routinely posts important information about its business on the Company’s Investors Relations website at https://ir.cushmanwakefield.com. The Company uses its website as a means of disclosing material, nonpublic information and for complying with its disclosure obligations under Regulation FD. Investors should monitor the Company’s Investor Relations website in addition to following the Company’s press releases, filings with the SEC, public conference calls and webcasts. The Company does not incorporate the contents of any website into this or any other report it files with the SEC.
Cushman & Wakefield plc
|
|||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||
(in millions, except per share data) |
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
Revenue |
$ |
2,629.5 |
|
$ |
2,552.4 |
|
|
$ |
9,446.5 |
|
$ |
9,493.7 |
|
Costs and expenses: |
|
|
|
|
|
||||||||
Costs of services (exclusive of depreciation and amortization) |
|
2,101.1 |
|
|
2,073.8 |
|
|
|
7,720.2 |
|
|
7,841.6 |
|
Operating, administrative and other |
|
319.7 |
|
|
317.1 |
|
|
|
1,224.1 |
|
|
1,262.8 |
|
Depreciation and amortization |
|
29.6 |
|
|
36.8 |
|
|
|
122.2 |
|
|
145.6 |
|
Restructuring, impairment and related charges |
|
4.6 |
|
|
14.7 |
|
|
|
41.1 |
|
|
38.1 |
|
Total costs and expenses |
|
2,455.0 |
|
|
2,442.4 |
|
|
|
9,107.6 |
|
|
9,288.1 |
|
Operating income |
|
174.5 |
|
|
110.0 |
|
|
|
338.9 |
|
|
205.6 |
|
Interest expense, net of interest income |
|
(55.5 |
) |
|
(56.9 |
) |
|
|
(229.9 |
) |
|
(281.1 |
) |
Earnings from equity method investments |
|
9.3 |
|
|
16.8 |
|
|
|
37.4 |
|
|
58.1 |
|
Other income (expense), net |
|
3.8 |
|
|
0.2 |
|
|
|
29.4 |
|
|
(12.6 |
) |
Earnings (loss) before income taxes |
|
132.1 |
|
|
70.1 |
|
|
|
175.8 |
|
|
(30.0 |
) |
Provision for income taxes |
|
19.2 |
|
|
0.3 |
|
|
|
44.5 |
|
|
5.4 |
|
Net income (loss) |
$ |
112.9 |
|
$ |
69.8 |
|
|
$ |
131.3 |
|
$ |
(35.4 |
) |
|
|
|
|
|
|
||||||||
Basic earnings (loss) per share: |
|
|
|
|
|
||||||||
Earnings (loss) per share attributable to common shareholders, basic |
$ |
0.49 |
|
$ |
0.31 |
|
|
$ |
0.57 |
|
$ |
(0.16 |
) |
Weighted average shares outstanding for basic earnings (loss) per share |
|
229.5 |
|
|
227.2 |
|
|
|
228.9 |
|
|
226.9 |
|
Diluted earnings (loss) per share: |
|
|
|
|
|
||||||||
Earnings (loss) per share attributable to common shareholders, diluted |
$ |
0.48 |
|
$ |
0.30 |
|
|
$ |
0.56 |
|
$ |
(0.16 |
) |
Weighted average shares outstanding for diluted earnings (loss) per share |
|
234.6 |
|
|
228.9 |
|
|
|
232.8 |
|
|
226.9 |
|
Cushman & Wakefield plc
|
||||||
|
As of December 31, |
|||||
(in millions, except share data) |
|
2024 |
|
|
2023 |
|
Assets |
|
|
||||
Current assets: |
|
|
||||
Cash and cash equivalents |
$ |
793.3 |
|
$ |
767.7 |
|
Trade and other receivables, net of allowance of |
|
1,352.4 |
|
|
1,468.0 |
|
Income tax receivable |
|
62.1 |
|
|
67.1 |
|
Short-term contract assets, net |
|
301.4 |
|
|
311.0 |
|
Prepaid expenses and other current assets |
|
181.2 |
|
|
189.4 |
|
Total current assets |
|
2,690.4 |
|
|
2,803.2 |
|
Property and equipment, net |
|
136.0 |
|
|
163.8 |
|
Goodwill |
|
1,998.3 |
|
|
2,080.9 |
|
Intangible assets, net |
|
690.1 |
|
|
805.9 |
|
Equity method investments |
|
723.6 |
|
|
708.0 |
|
Deferred tax assets |
|
93.1 |
|
|
67.4 |
|
Non-current operating lease assets |
|
290.1 |
|
|
339.0 |
|
Other non-current assets |
|
927.6 |
|
|
805.8 |
|
Total assets |
$ |
7,549.2 |
|
$ |
7,774.0 |
|
|
|
|
||||
Liabilities and Shareholders’ Equity |
|
|
||||
Current liabilities: |
|
|
||||
Short-term borrowings and current portion of long-term debt |
$ |
103.2 |
|
$ |
149.7 |
|
Accounts payable and accrued expenses |
|
1,110.5 |
|
|
1,157.7 |
|
Accrued compensation |
|
900.4 |
|
|
851.4 |
|
Income tax payable |
|
19.8 |
|
|
20.8 |
|
Other current liabilities |
|
196.0 |
|
|
217.6 |
|
Total current liabilities |
|
2,329.9 |
|
|
2,397.2 |
|
Long-term debt, net |
|
2,939.6 |
|
|
3,096.9 |
|
Deferred tax liabilities |
|
12.6 |
|
|
13.7 |
|
Non-current operating lease liabilities |
|
270.3 |
|
|
319.6 |
|
Other non-current liabilities |
|
241.4 |
|
|
268.6 |
|
Total liabilities |
|
5,793.8 |
|
|
6,096.0 |
|
|
|
|
||||
Shareholders’ equity: |
|
|
||||
Ordinary shares, nominal value |
|
23.0 |
|
|
22.7 |
|
Additional paid-in capital |
|
2,986.4 |
|
|
2,957.3 |
|
Accumulated deficit |
|
(985.9 |
) |
|
(1,117.2 |
) |
Accumulated other comprehensive loss |
|
(268.6 |
) |
|
(185.4 |
) |
Total equity attributable to the Company |
|
1,754.9 |
|
|
1,677.4 |
|
Non-controlling interests |
|
0.5 |
|
|
0.6 |
|
Total equity |
|
1,755.4 |
|
|
1,678.0 |
|
Total liabilities and shareholders’ equity |
$ |
7,549.2 |
|
$ |
7,774.0 |
|
Cushman & Wakefield plc
|
||||||
|
Year Ended December 31, |
|||||
(in millions) |
|
2024 |
|
|
2023 |
|
Cash flows from operating activities |
|
|
||||
Net income (loss) |
$ |
131.3 |
|
$ |
(35.4 |
) |
Reconciliation of net income (loss) to net cash provided by operating activities: |
|
|
||||
Depreciation and amortization |
|
122.2 |
|
|
145.6 |
|
Impairment charges |
|
3.8 |
|
|
13.6 |
|
Unrealized foreign exchange (gain) loss |
|
(4.3 |
) |
|
1.9 |
|
Stock-based compensation |
|
35.6 |
|
|
54.1 |
|
Lease amortization |
|
86.5 |
|
|
97.8 |
|
Loss on debt extinguishment |
|
— |
|
|
19.3 |
|
Amortization of debt issuance costs |
|
7.5 |
|
|
7.5 |
|
Earnings from equity method investments, net of distributions received |
|
(18.7 |
) |
|
(33.7 |
) |
Change in deferred taxes |
|
(28.1 |
) |
|
(50.4 |
) |
Provision for loss on receivables and other assets |
|
20.8 |
|
|
10.6 |
|
Loss on disposal of business |
|
15.8 |
|
|
1.3 |
|
Unrealized loss on equity securities, net |
|
0.8 |
|
|
27.8 |
|
Other operating activities, net |
|
(26.6 |
) |
|
16.7 |
|
Changes in assets and liabilities: |
|
|
||||
Trade and other receivables |
|
(78.7 |
) |
|
62.5 |
|
Income taxes payable |
|
2.1 |
|
|
(34.1 |
) |
Short-term contract assets and Prepaid expenses and other current assets |
|
20.8 |
|
|
72.8 |
|
Other non-current assets |
|
(58.0 |
) |
|
(24.7 |
) |
Accounts payable and accrued expenses |
|
16.8 |
|
|
(49.4 |
) |
Accrued compensation |
|
74.3 |
|
|
(67.7 |
) |
Other current and non-current liabilities |
|
(115.9 |
) |
|
(83.9 |
) |
Net cash provided by operating activities |
|
208.0 |
|
|
152.2 |
|
Cash flows from investing activities |
|
|
||||
Payment for property and equipment |
|
(41.0 |
) |
|
(51.0 |
) |
Investments in equity securities and equity method joint ventures |
|
(1.7 |
) |
|
(6.9 |
) |
Return of beneficial interest in a securitization |
|
(505.0 |
) |
|
(330.0 |
) |
Collection on beneficial interest in a securitization |
|
505.0 |
|
|
430.0 |
|
Proceeds from disposition of business |
|
122.6 |
|
|
— |
|
Other investing activities, net |
|
1.3 |
|
|
6.8 |
|
Net cash provided by investing activities |
|
81.2 |
|
|
48.9 |
|
Cash flows from financing activities |
|
|
||||
Shares repurchased for payment of employee taxes on stock awards |
|
(10.4 |
) |
|
(8.1 |
) |
Payment of deferred and contingent consideration |
|
(18.1 |
) |
|
(14.5 |
) |
Proceeds from borrowings |
|
— |
|
|
2,400.0 |
|
Repayment of borrowings |
|
(200.4 |
) |
|
(2,405.0 |
) |
Debt issuance costs |
|
— |
|
|
(65.1 |
) |
Payment of finance lease liabilities |
|
(28.2 |
) |
|
(29.2 |
) |
Other financing activities, net |
|
3.7 |
|
|
1.1 |
|
Net cash used in financing activities |
|
(253.4 |
) |
|
(120.8 |
) |
|
|
|
||||
Change in cash, cash equivalents and restricted cash |
|
35.8 |
|
|
80.3 |
|
Cash, cash equivalents and restricted cash, beginning of the year |
|
801.2 |
|
|
719.0 |
|
Effects of exchange rate fluctuations on cash, cash equivalents and restricted cash |
|
(22.4 |
) |
|
1.9 |
|
Cash, cash equivalents and restricted cash, end of the year |
$ |
814.6 |
|
$ |
801.2 |
|
Segment Results |
|||||||||||||||||
The following tables summarize the results of operations for the Company’s segments for the three months and years ended December 31, 2024 and 2023. |
|||||||||||||||||
Americas Results |
|||||||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||||
(in millions) (unaudited) |
2024 |
2023 |
% Change in USD |
% Change in Local Currency |
|
2024 |
2023 |
% Change in USD |
% Change in Local Currency |
||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
||||||||
Services |
$ |
609.4 |
$ |
625.9 |
(3 |
)% |
(2 |
)% |
|
$ |
2,420.4 |
$ |
2,494.7 |
(3 |
)% |
(3 |
)% |
Leasing |
|
488.4 |
|
439.1 |
11 |
% |
12 |
% |
|
|
1,536.2 |
|
1,420.9 |
8 |
% |
9 |
% |
Capital markets |
|
182.8 |
|
138.1 |
32 |
% |
33 |
% |
|
|
564.7 |
|
556.5 |
1 |
% |
2 |
% |
Valuation and other |
|
48.8 |
|
47.5 |
3 |
% |
4 |
% |
|
|
161.9 |
|
150.0 |
8 |
% |
9 |
% |
Total service line fee revenue(1) |
|
1,329.4 |
|
1,250.6 |
6 |
% |
7 |
% |
|
|
4,683.2 |
|
4,622.1 |
1 |
% |
2 |
% |
Gross contract reimbursables(2) |
|
583.5 |
|
620.3 |
(6 |
)% |
(6 |
)% |
|
|
2,314.8 |
|
2,506.9 |
(8 |
)% |
(8 |
)% |
Total revenue |
$ |
1,912.9 |
$ |
1,870.9 |
2 |
% |
3 |
% |
|
$ |
6,998.0 |
$ |
7,129.0 |
(2 |
)% |
(2 |
)% |
|
|
|
|
|
|
|
|
|
|
||||||||
Costs and expenses: |
|
|
|
|
|
|
|
|
|
||||||||
Americas Fee-based operating expenses |
$ |
1,188.5 |
$ |
1,127.1 |
5 |
% |
6 |
% |
|
$ |
4,279.6 |
$ |
4,237.5 |
1 |
% |
1 |
% |
Cost of gross contract reimbursables |
|
583.5 |
|
620.3 |
(6 |
)% |
(6 |
)% |
|
|
2,314.8 |
|
2,506.9 |
(8 |
)% |
(8 |
)% |
Segment operating expenses |
$ |
1,772.0 |
$ |
1,747.4 |
1 |
% |
2 |
% |
|
$ |
6,594.4 |
$ |
6,744.4 |
(2 |
)% |
(2 |
)% |
|
|
|
|
|
|
|
|
|
|
||||||||
Net income |
$ |
84.8 |
$ |
28.0 |
n.m. |
n.m. |
|
$ |
126.7 |
$ |
17.8 |
n.m. |
n.m. |
||||
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA |
$ |
151.7 |
$ |
139.1 |
9 |
% |
10 |
% |
|
$ |
436.4 |
$ |
429.6 |
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 December 31, |
|
Year Ended December 31, |
||||||||||||||||
(in millions) (unaudited) |
2024 |
2023 |
% Change in USD |
% Change in Local Currency |
|
2024 |
2023 |
|
% Change in USD |
% Change in Local Currency |
|||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
||||||||||
Services |
$ |
92.1 |
$ |
91.3 |
1 |
% |
1 |
% |
|
$ |
331.3 |
|
$ |
371.4 |
|
(11 |
)% |
(12 |
)% |
Leasing |
|
68.8 |
|
81.1 |
(15 |
)% |
(15 |
)% |
|
|
227.0 |
|
|
229.6 |
|
(1 |
)% |
(2 |
)% |
Capital markets |
|
36.6 |
|
30.9 |
18 |
% |
20 |
% |
|
|
91.5 |
|
|
83.3 |
|
10 |
% |
10 |
% |
Valuation and other |
|
51.5 |
|
50.9 |
1 |
% |
0 |
% |
|
|
177.7 |
|
|
174.2 |
|
2 |
% |
1 |
% |
Total service line fee revenue(1) |
|
249.0 |
|
254.2 |
(2 |
)% |
(2 |
)% |
|
|
827.5 |
|
|
858.5 |
|
(4 |
)% |
(4 |
)% |
Gross contract reimbursables(2) |
|
40.2 |
|
32.1 |
25 |
% |
24 |
% |
|
|
125.7 |
|
|
115.2 |
|
9 |
% |
8 |
% |
Total revenue |
$ |
289.2 |
$ |
286.3 |
1 |
% |
1 |
% |
|
$ |
953.2 |
|
$ |
973.7 |
|
(2 |
)% |
(3 |
)% |
|
|
|
|
|
|
|
|
|
|
||||||||||
Costs and expenses: |
|
|
|
|
|
|
|
|
|
||||||||||
EMEA Fee-based operating expenses |
$ |
207.8 |
$ |
210.4 |
(1 |
)% |
(2 |
)% |
|
$ |
752.0 |
|
$ |
779.3 |
|
(4 |
)% |
(5 |
)% |
Cost of gross contract reimbursables |
|
40.2 |
|
32.1 |
25 |
% |
24 |
% |
|
|
125.7 |
|
|
115.2 |
|
9 |
% |
8 |
% |
Segment operating expenses |
$ |
248.0 |
$ |
242.5 |
2 |
% |
2 |
% |
|
$ |
877.7 |
|
$ |
894.5 |
|
(2 |
)% |
(3 |
)% |
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) |
$ |
25.1 |
$ |
19.0 |
32 |
% |
36 |
% |
|
$ |
(3.4 |
) |
$ |
(46.5 |
) |
(93 |
)% |
(94 |
)% |
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA |
$ |
39.8 |
$ |
46.1 |
(14 |
)% |
(10 |
)% |
|
$ |
74.5 |
|
$ |
77.4 |
|
(4 |
)% |
(2 |
)% |
(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 December 31, |
|
Year Ended December 31, |
|||||||||||||||
(in millions) (unaudited) |
2024 |
2023 |
% Change in USD |
% Change in Local Currency |
|
2024 |
2023 |
|
% Change in USD |
% Change in Local Currency |
||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|||||||||
Services |
$ |
178.1 |
$ |
191.3 |
(7 |
)% |
(7 |
)% |
|
$ |
728.4 |
$ |
706.9 |
|
3 |
% |
3 |
% |
Leasing |
|
65.5 |
|
66.5 |
(2 |
)% |
0 |
% |
|
|
184.3 |
|
176.2 |
|
5 |
% |
6 |
% |
Capital markets |
|
28.1 |
|
15.0 |
87 |
% |
92 |
% |
|
|
65.6 |
|
55.2 |
|
19 |
% |
23 |
% |
Valuation and other |
|
25.3 |
|
28.8 |
(12 |
)% |
(12 |
)% |
|
|
100.2 |
|
112.5 |
|
(11 |
)% |
(9 |
)% |
Total service line fee revenue(1) |
|
297.0 |
|
301.6 |
(2 |
)% |
(1 |
)% |
|
|
1,078.5 |
|
1,050.8 |
|
3 |
% |
4 |
% |
Gross contract reimbursables(2) |
|
130.4 |
|
93.6 |
39 |
% |
39 |
% |
|
|
416.8 |
|
340.2 |
|
23 |
% |
23 |
% |
Total revenue |
$ |
427.4 |
$ |
395.2 |
8 |
% |
9 |
% |
|
$ |
1,495.3 |
$ |
1,391.0 |
|
7 |
% |
8 |
% |
|
|
|
|
|
|
|
|
|
|
|||||||||
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|||||||||
APAC Fee-based operating expenses |
$ |
265.8 |
$ |
278.2 |
(4 |
)% |
(4 |
)% |
|
$ |
1,020.2 |
$ |
1,008.9 |
|
1 |
% |
2 |
% |
Cost of gross contract reimbursables |
|
130.4 |
|
93.6 |
39 |
% |
39 |
% |
|
|
416.8 |
|
340.2 |
|
23 |
% |
23 |
% |
Segment operating expenses |
$ |
396.2 |
$ |
371.8 |
7 |
% |
7 |
% |
|
$ |
1,437.0 |
$ |
1,349.1 |
|
7 |
% |
7 |
% |
|
|
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) |
$ |
3.0 |
$ |
22.8 |
(87 |
)% |
(86 |
)% |
|
$ |
8.0 |
$ |
(6.7 |
) |
n.m. |
n.m. |
||
|
|
|
|
|
|
|
|
|
|
|||||||||
Adjusted EBITDA |
$ |
30.8 |
$ |
27.9 |
10 |
% |
15 |
% |
|
$ |
71.0 |
$ |
63.1 |
|
13 |
% |
15 |
% |
| 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:
- Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) and Adjusted EBITDA margin;
- Segment operating expenses and Fee-based operating expenses;
- Adjusted net income and Adjusted earnings per share;
- Free cash flow;
- Local currency; and
- 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 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 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. Tax impact of adjusted items reflects management’s expectation about our long-term adjusted effective tax rate. 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 operating activities, less capital expenditures (reflected as Payment for property and equipment in the investing activities 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
During the periods presented in this earnings release, we had the following adjustments:
Unrealized 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 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 second half 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 months ended December 31, 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, 2024 in the Company’s 2024 Annual Report on Form 10-K, to be filed with the SEC in the near future.
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 December 31, |
|
Year Ended December 31, |
||||||||||
(in millions) (unaudited) |
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
Net income (loss) |
$ |
112.9 |
|
$ |
69.8 |
|
|
$ |
131.3 |
|
$ |
(35.4 |
) |
Adjustments: |
|
|
|
|
|
||||||||
Depreciation and amortization |
|
29.6 |
|
|
36.8 |
|
|
|
122.2 |
|
|
145.6 |
|
Interest expense, net of interest income |
|
55.5 |
|
|
56.9 |
|
|
|
229.9 |
|
|
281.1 |
|
Provision for income taxes |
|
19.2 |
|
|
0.3 |
|
|
|
44.5 |
|
|
5.4 |
|
Unrealized loss on investments, net |
|
— |
|
|
4.9 |
|
|
|
0.8 |
|
|
27.8 |
|
(Gain) loss on dispositions |
|
(1.1 |
) |
|
— |
|
|
|
18.4 |
|
|
1.8 |
|
Integration and other costs related to merger |
|
1.0 |
|
|
4.4 |
|
|
|
4.9 |
|
|
11.2 |
|
Acquisition related costs and efficiency initiatives |
|
— |
|
|
2.5 |
|
|
|
— |
|
|
14.2 |
|
Cost savings initiatives |
|
— |
|
|
14.2 |
|
|
|
28.9 |
|
|
55.6 |
|
CEO transition costs |
|
— |
|
|
2.8 |
|
|
|
1.9 |
|
|
8.3 |
|
Servicing liability fees and amortization |
|
(0.3 |
) |
|
(0.6 |
) |
|
|
(1.7 |
) |
|
11.7 |
|
Legal and compliance matters |
|
— |
|
|
8.9 |
|
|
|
— |
|
|
23.0 |
|
Gain from insurance proceeds, net of legal fees |
|
— |
|
|
— |
|
|
|
(16.5 |
) |
|
1.1 |
|
Other(1) |
|
5.5 |
|
|
12.2 |
|
|
|
17.3 |
|
|
18.7 |
|
Adjusted EBITDA |
$ |
222.3 |
|
$ |
213.1 |
|
|
$ |
581.9 |
|
$ |
570.1 |
|
(1) |
For the year ended December 31, 2024, Other primarily reflects one-time consulting costs associated with the Company rebranding, professional services fees associated with discrete offshoring, legal fees and costs associated with an antitrust matter, non-cash stock-based compensation expense associated with certain one-time retention awards which vested in February 2024, one-time bad debt expense driven by a sublessee default and one-time legal and consulting costs associated with a secondary offering of our ordinary shares by our former shareholders. For the year ended December 31, 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 a one-time impairment of certain customer relationship intangible assets. |
Reconciliation of Total costs and expenses to Segment operating expenses and Fee-based operating expenses: |
|||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||
(in millions) (unaudited) |
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
Total costs and expenses |
$ |
2,455.0 |
|
$ |
2,442.4 |
|
|
$ |
9,107.6 |
|
$ |
9,288.1 |
|
Depreciation and amortization |
|
(29.6 |
) |
|
(36.8 |
) |
|
|
(122.2 |
) |
|
(145.6 |
) |
Gain (loss) on dispositions |
|
1.1 |
|
|
— |
|
|
|
(18.4 |
) |
|
(1.8 |
) |
Integration and other costs related to merger |
|
(1.0 |
) |
|
(4.4 |
) |
|
|
(4.9 |
) |
|
(11.2 |
) |
Acquisition related costs and efficiency initiatives |
|
— |
|
|
(2.5 |
) |
|
|
— |
|
|
(14.2 |
) |
Cost savings initiatives |
|
— |
|
|
(14.2 |
) |
|
|
(28.9 |
) |
|
(55.6 |
) |
CEO transition costs |
|
— |
|
|
(2.8 |
) |
|
|
(1.9 |
) |
|
(8.3 |
) |
Servicing liability fees and amortization |
|
0.3 |
|
|
0.6 |
|
|
|
1.7 |
|
|
(11.7 |
) |
Legal and compliance matters |
|
— |
|
|
(8.9 |
) |
|
|
— |
|
|
(23.0 |
) |
Other, including foreign currency movements(1) |
|
(9.6 |
) |
|
(11.7 |
) |
|
|
(23.9 |
) |
|
(28.7 |
) |
Segment operating expenses |
|
2,416.2 |
|
|
2,361.7 |
|
|
|
8,909.1 |
|
|
8,988.0 |
|
Cost of gross contract reimbursables |
|
(754.1 |
) |
|
(746.0 |
) |
|
|
(2,857.3 |
) |
|
(2,962.3 |
) |
Fee-based operating expenses |
$ |
1,662.1 |
|
$ |
1,615.7 |
|
|
$ |
6,051.8 |
|
$ |
6,025.7 |
|
(1) |
For the year ended December 31, 2024, Other primarily reflects one-time consulting costs associated with the Company rebranding, professional services fees associated with discrete offshoring, legal fees and costs associated with an antitrust matter, non-cash stock-based compensation expense associated with certain one-time retention awards which vested in February 2024, one-time bad debt expense driven by a sublessee default, one-time legal and consulting costs associated with a secondary offering of our ordinary shares by our former shareholders and the effects of movements in foreign currency. For the year ended December 31, 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, a one-time impairment of certain customer relationship intangible assets and the effects of movements in foreign currency. |
Reconciliation of Net income (loss) to Adjusted net income: |
|||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||
(in millions, except per share data) (unaudited) |
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
Net income (loss) |
$ |
112.9 |
|
$ |
69.8 |
|
|
$ |
131.3 |
|
$ |
(35.4 |
) |
Adjustments: |
|
|
|
|
|
||||||||
Merger and acquisition related depreciation and amortization |
|
10.1 |
|
|
15.6 |
|
|
|
47.6 |
|
|
68.3 |
|
Unrealized loss on investments, net |
|
— |
|
|
4.9 |
|
|
|
0.8 |
|
|
27.8 |
|
Financing and other facility fees(1) |
|
— |
|
|
— |
|
|
|
2.9 |
|
|
50.6 |
|
(Gain) loss on dispositions |
|
(1.1 |
) |
|
— |
|
|
|
18.4 |
|
|
1.8 |
|
Integration and other costs related to merger |
|
1.0 |
|
|
4.4 |
|
|
|
4.9 |
|
|
11.2 |
|
Acquisition related costs and efficiency initiatives |
|
— |
|
|
2.5 |
|
|
|
— |
|
|
14.2 |
|
Cost savings initiatives |
|
— |
|
|
14.2 |
|
|
|
28.9 |
|
|
55.6 |
|
CEO transition costs |
|
— |
|
|
2.8 |
|
|
|
1.9 |
|
|
8.3 |
|
Servicing liability fees and amortization |
|
(0.3 |
) |
|
(0.6 |
) |
|
|
(1.7 |
) |
|
11.7 |
|
Legal and compliance matters |
|
— |
|
|
8.9 |
|
|
|
— |
|
|
23.0 |
|
Gain from insurance proceeds, net of legal fees |
|
— |
|
|
— |
|
|
|
(16.5 |
) |
|
1.1 |
|
Other |
|
5.5 |
|
|
12.2 |
|
|
|
17.3 |
|
|
18.7 |
|
Tax impact of adjusted items(2) |
|
(14.6 |
) |
|
(32.3 |
) |
|
|
(23.3 |
) |
|
(65.4 |
) |
Adjusted net income |
$ |
113.5 |
|
$ |
102.4 |
|
|
$ |
212.5 |
|
$ |
191.5 |
|
Weighted average shares outstanding, basic |
|
229.5 |
|
|
227.2 |
|
|
|
228.9 |
|
|
226.9 |
|
Weighted average shares outstanding, diluted(3) |
|
234.6 |
|
|
228.9 |
|
|
|
232.8 |
|
|
227.7 |
|
Adjusted earnings per share, basic |
$ |
0.49 |
|
$ |
0.45 |
|
|
$ |
0.93 |
|
$ |
0.84 |
|
Adjusted earnings per share, diluted(3) |
$ |
0.48 |
|
$ |
0.45 |
|
|
$ |
0.91 |
|
$ |
0.84 |
|
(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) |
Reflective of management’s estimation of an adjusted effective tax rate of |
(3) |
Weighted average shares outstanding, diluted is calculated by taking basic weighted average shares outstanding and adding dilutive shares of 5.1 million and 1.7 million for the three months ended December 31, 2024 and 2023, respectively, and dilutive shares of 3.9 million and 0.8 million for the year ended December 31, 2024 and 2023, respectively. |
Reconciliation of Net cash provided by operating activities to Free cash flow: |
||||||
|
Year Ended December 31, |
|||||
(in millions) (unaudited) |
|
2024 |
|
|
2023 |
|
Net cash provided by operating activities |
$ |
208.0 |
|
$ |
152.2 |
|
Payment for property and equipment |
|
(41.0 |
) |
|
(51.0 |
) |
Free cash flow |
$ |
167.0 |
|
$ |
101.2 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250219740322/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
Source: Cushman & Wakefield
FAQ
What was CWK's revenue growth in Q4 2024?
How much did CWK's Capital markets revenue increase in Q4 2024?
What was CWK's net income for full-year 2024?
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What is CWK's current liquidity position?
