Cushman & Wakefield(US:CWK)2023-07-31 16:00Financial Performance - Net income for the three months ended June 30, 2023, was $5.1 million, a significant decrease from $97.2 million in the same period of 2022[166]. - Total comprehensive income for the six months ended June 30, 2023, was a loss of $58.3 million, compared to a profit of $142.2 million in the same period of 2022[166]. - Revenue for the first half of 2023 was $4.7 billion, a decrease of 6% from the first half of 2022[200]. - Net loss for the first half of 2023 was $71.3 million, with a diluted loss per share of $0.31[202]. - Revenue for the second quarter of 2023 was $2.4 billion, an 8% decrease from the second quarter of 2022[204]. - Net income for the second quarter of 2023 was $5.1 million, with diluted earnings per share of $0.02[205]. - Net income for Q2 2023 was $5.1 million, a significant decline of 95% compared to $97.2 million in Q2 2022[234]. - Net loss for the six months ended June 30, 2023, was $71.3 million, reflecting a 20% decline in Leasing revenue and a 49% decline in Capital markets revenue[262]. Adjusted EBITDA - Adjusted EBITDA for the Americas segment was $116.4 million for the three months ended June 30, 2023, down from $210.5 million in the same period of 2022[172]. - Adjusted EBITDA for the first half of 2023 was $207.0 million, a decline of 57% from the first half of 2022[200]. - Adjusted EBITDA for the second quarter of 2023 was $146.1 million, a 44% decrease from the second quarter of 2022[205]. - Adjusted EBITDA for the three months ended June 30, 2023, was $146.1 million, a decrease of $116.7 million or 44% compared to the same period in 2022[252]. - Adjusted EBITDA decreased by $270.1 million or 57% to $207.0 million, with a margin of 6.6%, down from 13.2% in the prior year[263]. - EMEA Adjusted EBITDA for the three months ended June 30, 2023, decreased by $18.4 million or 52% to $16.9 million, primarily due to lower brokerage activity[274]. - Adjusted EBITDA for the six months ended June 30, 2023, was $14.8 million, a decrease of $37.2 million or 72% compared to the same period in 2022, primarily driven by lower brokerage activity[284]. Revenue Breakdown - Service line fee revenue for the first half of 2023 was $3.1 billion, down 13% compared to the same period last year[200]. - Service line fee revenue for the second quarter of 2023 was $1.6 billion, down 15% year-over-year[204]. - Total service line fee revenue decreased by 15% year-over-year to $1,632.9 million in Q2 2023 from $1,916.4 million in Q2 2022[234]. - Total service line fee revenue in the Americas for the three months ended June 30, 2023, was $1.2 billion, a decrease of 17% from the previous year[270]. - EMEA revenue for Q2 2023 was $239.9 million, a decrease of $32.0 million or 12% from Q2 2022, primarily due to lower Leasing and Capital markets revenue, which declined by 17% and 61% respectively on a local currency basis[279]. - APAC revenue for Q2 2023 was $329.6 million, an increase of $0.3 million from Q2 2022, with a 4% increase on a local currency basis after excluding foreign currency impacts[287]. - APAC revenue for the six months ended June 30, 2023, was $653.4 million, an increase of $16.1 million or 3% from the same period in 2022, with a 7% increase on a local currency basis after excluding foreign currency impacts[290]. Costs and Expenses - Total costs and expenses for the three months ended June 30, 2023, were $2.35 billion, a decrease of $86.3 million or 4% compared to the same period in 2022[238]. - Costs of services for the six months ended June 30, 2023, were $3.9 billion, a decrease of $52.3 million or 1% compared to the same period in 2022[254]. - Operating, administrative, and other expenses for the six months ended June 30, 2023, were $644.8 million, an increase of $33.9 million or 6% compared to the same period in 2022[255]. - The cost of services provided to clients was $1,205.0 million in Q2 2023, reflecting a 13% decrease from $1,381.3 million in Q2 2022[234]. - Fee-based operating expenses for the six months ended June 30, 2023, were $2.1 billion, a decrease of 9% compared to the same period in 2022[271]. - Fee-based operating expenses for the six months ended June 30, 2023, were $377.0 million, a decrease of 7% on a local currency basis, with expenses as a percentage of total service line fee revenue increasing to 96% from 89% year-over-year[283]. Balance Sheet and Liquidity - Total current assets decreased to $2,624.6 million as of June 30, 2023, from $2,766.8 million as of December 31, 2022[179]. - Total liabilities decreased to $6,018.1 million as of June 30, 2023, from $6,287.2 million as of December 31, 2022[179]. - Cash and cash equivalents were $502.3 million as of June 30, 2023, down from $644.5 million as of December 31, 2022[179]. - The company reported a total equity attributable to the company of $1,621.4 million as of June 30, 2023, compared to $1,661.3 million as of December 31, 2022[179]. - Liquidity as of June 30, 2023, was $1.6 billion, including $1.1 billion available on the undrawn revolving credit facility[203]. - As of June 30, 2023, the company had $1.6 billion of liquidity, consisting of $0.5 billion in cash and cash equivalents and $1.1 billion available on an undrawn revolving credit facility[298]. - The company used $238.3 million of cash for operating activities during the six months ended June 30, 2023, a decrease of $8.0 million compared to the same period in 2022[301]. Foreign Exchange and Interest Rate Risks - The company is exposed to fluctuations in foreign exchange rates, which may impact cash receipts and payments in USD[308]. - Foreign exchange risk management includes establishing local operations, invoicing in the same currency as costs, and using foreign currency forward contracts[312]. - Interest rate risk is managed through derivative financial instruments such as interest rate swap agreements to hedge variability in future interest payments[310]. - The company continually assesses interest rate sensitivity to estimate the impact of rising short-term interest rates on variable rate debt[311]. - Interest expense increased by $45.4 million or 51% to $134.7 million due to refinancing and higher variable interest rates[258]. Corporate Governance and Compliance - There were no material changes in internal control over financial reporting during the quarter ended June 30, 2023[317]. - The Chief Executive Officer and Chief Financial Officer concluded that disclosure controls and procedures were effective as of June 30, 2023[316]. - The company has not experienced any material changes to its risk factors as disclosed in the previous Annual Report[320]. - There were no defaults upon senior securities during the reporting period[322]. - The company has not engaged in any unregistered sales of equity securities[321]. - There were no insider trading arrangements adopted or terminated by directors or officers during the most recent fiscal quarter[325].