Newmark(US:NMRK)2025-02-14 14:03Financial Performance - Newmark reported total revenues of $888.3 million for Q4 2024, an increase of 18.8% compared to $747.4 million in Q4 2023, and $2,754.1 million for FY 2024, up 11.5% from $2,470.4 million in FY 2023[4]. - The company achieved a GAAP net income of $65.7 million for Q4 2024, a 24.3% increase from $52.9 million in Q4 2023, and $61.2 million for FY 2024, representing a 43.8% increase from $42.6 million in FY 2023[4]. - Adjusted EBITDA for Q4 2024 was $182.9 million, a 10.1% increase from $166.2 million in Q4 2023, and $445.3 million for FY 2024, up 11.8% from $398.3 million in FY 2023[4]. - Newmark's fee revenues grew by 16.9% to $756.0 million in Q4 2024 and by 10.2% to $2.3 billion for FY 2024[9]. - The company recorded a 209% increase in Mortgage Brokerage and Debt Placement volumes and an 85% rise in GSE/FHA origination volumes, excluding Signature transactions[3]. - Newmark's consolidated net income for the year ended December 31, 2024, was $85,491,000, a 37.0% increase compared to $62,375,000 in 2023[46]. - Adjusted Earnings before noncontrolling interests and taxes for Q4 2024 reached $160.4 million, a 19.7% increase from $133.9 million in Q4 2023[87]. - Adjusted EBITDA for the year ended December 31, 2024, was $445.3 million, a 11.8% increase from $398.3 million in 2023[97]. Growth and Expansion - The company experienced a 21% growth in Management and Servicing, a 20% increase in Capital Markets, and a 15% rise in Leasing for Q4 2024[3]. - Newmark's pipeline remains strong, with expectations of at least $630 million in Adjusted EBITDA by 2026[4]. - The company acquired London-based real estate advisory firm Gerald Eve on March 10, 2023, enhancing its capabilities in capital markets and corporate real estate advisory[33]. - Newmark's acquisition of the remaining 49% of Spring11 in Q1 2023 significantly expanded its servicing and asset management portfolio[34]. - The company arranged $2.3 billion in construction financing for a 206 MW build-to-suit data center, showcasing its active role in significant transactions[36]. Expenses and Liabilities - Total expenses under GAAP for Q4 2024 were $785.1 million, a 15.8% increase from $677.7 million in Q4 2023, and $2,597.7 million for FY 2024, up 10.1% from $2,359.0 million in FY 2023[10]. - For the full year 2024, non-compensation expenses rose 6.2% under GAAP and 4.4% for Adjusted Earnings, while total expenses grew 8.6% and 6.7% respectively[12]. - Newmark's total liabilities increased to $3,179,691,000 in 2024, up from $2,876,649,000 in 2023, indicating a rise of 10.5%[44]. Cash Flow and Liquidity - Net cash provided by operating activities for Q4 2024 was $402.6 million, compared to $220.0 million in Q4 2023, representing an increase of 82.7%[48]. - Cash and cash equivalents at the end of Q4 2024 were $304.9 million, up from $258.7 million at the end of Q4 2023, an increase of 17.9%[48]. - The company reported a net increase in cash and cash equivalents of $20.5 million in Q4 2024, compared to a decrease of $25.4 million in Q4 2023[48]. - The company clarified its non-GAAP measures, including adjustments for non-recurring items to better reflect underlying operating performance starting from Q3 2023[52]. - Newmark's liquidity is defined as the sum of cash and cash equivalents, marketable securities, and reverse repurchase agreements, minus securities lent out[82]. Shareholder Returns - Newmark repurchased 2.1 million shares for $31.4 million in Q4 2024 and 18.6 million shares for $224.9 million at an average price of $12.09 for the full year[14]. - The Board declared a quarterly dividend of $0.03 per share payable on March 17, 2025[17]. - The company continues to target annual share count growth of 2% or less over time[20]. Future Outlook - The FY 2025 outlook for total revenues is projected between $2,900 million and $3,100 million, representing a year-over-year increase of 5% to 13%[20]. - Adjusted Earnings Per Share for FY 2025 is expected to be between $1.40 and $1.50, reflecting a year-over-year increase of 14% to 22%[20]. - Management believes that certain compensation and tax-related matters will not materially impact the earnings outlook for 2024[18]. - The company anticipates providing forward-looking guidance for GAAP revenues and certain non-GAAP measures, but not for other GAAP results due to forecasting difficulties[84]. Tax and Adjusted Earnings - Newmark's effective tax rate for Adjusted Earnings was 13.9% in Q4 2024, down from 14.8% a year earlier[11]. - The provision for income taxes for Adjusted Earnings in Q4 2024 was $22.3 million, up from $19.9 million in Q4 2023, reflecting a 12.1% increase[89]. - Adjusted Earnings are used by management to evaluate financial performance and exclude certain non-cash items and expenses that do not reflect ongoing operations[54]. - Adjusted Earnings and Adjusted EBITDA are not intended to replace GAAP financial results but provide additional insights into financial performance[75].