Cushman & Wakefield(US:CWK)2024-07-29 21:37Revenue Performance - Revenue for Q2 2024 was $2.3 billion, a decrease of 5% from Q2 2023, with Leasing growing 2% driven by the Americas and APAC [142]. - Revenue for the first half of 2024 was $4.5 billion, down 4% from the first half of 2023, with Leasing growth of 3% across all segments [142]. - Total revenue for Q2 2024 was $2,288.0 million, a decrease of 5% compared to $2,406.0 million in Q2 2023 [167]. - Revenue for the three months ended June 30, 2024, was $2.3 billion, a decrease of $118.0 million or 5% compared to the same period in 2023, primarily driven by a 7% decline in the Americas [171]. - Revenue for the six months ended June 30, 2024, was $4.5 billion, a decrease of $182.5 million or 4%, driven by a 6% decline in the Americas [180]. - Americas revenue for Q2 2024 was $1.7 billion, a decrease of $123.1 million or 7% from Q2 2023, primarily due to lower Services and Gross contract reimbursables revenue [193]. - EMEA revenue for Q2 2024 was $221.9 million, an 8% decrease from Q2 2023, mainly due to lower Services and Gross contract reimbursables revenue [201]. - APAC revenue for Q2 2024 was $352.7 million, a 7% increase from Q2 2023, with a 9% increase on a local currency basis after excluding foreign currency impact [209]. - For the first half of 2024, APAC revenue was $694.2 million, a 6% increase from the first half of 2023, with a 9% increase on a local currency basis [213]. Net Income and Loss - Net income for Q2 2024 was $13.5 million, an increase of $8.4 million compared to $5.1 million in Q2 2023, with diluted earnings per share at $0.06 [142]. - Net loss for the first half of 2024 improved by 79% to $15.3 million compared to a net loss of $71.3 million in the first half of 2023 [142]. - Net income for the three months ended June 30, 2024, was $13.5 million, an increase of $8.4 million compared to the same period in 2023, resulting in a net income margin of 0.6% [178]. Adjusted EBITDA - Adjusted EBITDA for Q2 2024 was $138.9 million, a decrease of 5% from Q2 2023, while for the first half of 2024, it increased by 5% to $217.0 million [142]. - Adjusted EBITDA for the three months ended June 30, 2024, was $138.9 million, a decrease of $7.2 million or 5% compared to the same period in 2023, with an adjusted EBITDA margin of 8.8% [179]. - Adjusted EBITDA for the six months ended June 30, 2024, was $217.0 million, an increase of $10.0 million or 5%, with an adjusted EBITDA margin of 7.0% [189]. - Adjusted EBITDA for the Americas in Q2 2024 was $109.0 million, a decrease of $7.4 million or 6% compared to Q2 2023, driven by declines in Services and Capital markets [195]. - Adjusted EBITDA for EMEA in Q2 2024 was $13.2 million, a decrease of $3.7 million or 22% compared to Q2 2023, primarily due to cost inflation and higher incentive compensation [202]. - Adjusted EBITDA for Q2 2024 was $16.7 million, a 30% increase compared to Q2 2023, primarily due to growth in Leasing and Capital markets revenue [211]. Costs and Expenses - Total costs and expenses for Q2 2024 were $2,217.6 million, a decrease of 6% from $2,349.7 million in Q2 2023 [167]. - Costs of services for the same period were $1.9 billion, down $103.3 million or 5%, mainly due to a decrease in third-party consumables by approximately $75.0 million [172]. - Operating, administrative, and other expenses decreased by $34.7 million or 11% to $294.2 million, attributed to cost savings initiatives [173]. - The company incurred $10.2 million in cost savings initiatives during Q2 2024, reflecting ongoing efforts to optimize workforce and reduce expenses [164]. - Costs of services for the six months ended June 30, 2024, were $3.7 billion, down $178.4 million or 5%, with total costs of services as a percentage of total revenue remaining at 83% [181]. Liquidity and Cash Flow - Liquidity as of June 30, 2024, was $1.7 billion, consisting of $1.1 billion available on the undrawn Revolver and $0.6 billion in cash and cash equivalents [142]. - Net cash used in operating activities for the first half of 2024 was $103.3 million, a decrease of $135.0 million compared to the same period in 2023 [224]. - The company generated $56.9 million from investing activities in the first half of 2024, primarily from net capital funding secured by A/R Securitization [226]. - Cash used in financing activities for the first half of 2024 was $140.5 million, an increase of $85.5 million from the same period in 2023, mainly due to repayment of borrowings [227]. Strategic Initiatives - In June 2024, the company signed an agreement to sell a non-core business, expected to close in Q3 2024, to focus on core growth opportunities [142]. - The company implemented cost savings initiatives that contributed to a decrease in fee-based operating expenses by 4% in both the Americas and EMEA segments [194][205]. - The company has a foreign exchange risk management strategy that includes local operations and the use of derivative financial instruments to mitigate currency fluctuations [233]. Macroeconomic Environment - The company experienced macroeconomic challenges, including elevated interest rates, impacting demand for services, but Leasing showed positive momentum with a 3% revenue increase [141]. - The company expects continued challenges in the macroeconomic environment, impacting future revenue growth and operational efficiency [164].