Cushman & Wakefield plc (NYSE:CWK) Q2 2019 Earnings Conference Call - Final Transcript

Aug 01, 2019 • 05:00 pm ET


Cushman & Wakefield plc (NYSE:CWK) Q2 2019 Earnings Conference Call - Final Transcript


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Welcome to Cushman & Wakefield's Second Quarter 2019 Earnings Conference Call. [Operator Instructions] It is now my pleasure to introduce Bill Knightly, EVP of Investor Relations and Treasurer for Cushman & Wakefield. Mr. Knightly, you may begin your conference.

Bill Knightly

Thank you, and welcome again to Cushman & Wakefield's Second Quarter 2019 Earnings Conference Call. Earlier today, we issued a press release announcing our financial results for the period. This release can be found on our Investor Relations website, along with today's presentation pages that you can use to follow along. The materials can be found at Please turn to the page labeled forward-looking statements.

Today's presentation contains forward-looking statements based on our current forecast and estimates of future events. These statements should be considered estimates only and actual results may differ materially. During today's call, we will refer to non-GAAP financial measures as outlined by SEC guidelines. Reconciliations of GAAP to non-GAAP measures are found within the financial tables of our earnings release and appendix of today's presentation.

I'd like to remind you that the company uses fee revenue, adjusted EBITDA, adjusted earnings per share and local currency to improve comparability of current results and to assist our investors in analyzing the underlying performance of our business. You will find definitions of these non-GAAP financial measures and more detailed financial information in the tables of today's earnings release and Form 8-K. In addition I would like to note that throughout the presentation comparisons and growth rates are to the comparable periods of 2018 and in local currency.

For those of you following along with our presentation, we will begin on page five. And with that I'd like to turn the call over to our Executive Chairman and CEO, Brett White.

Brett white

Thank You, Bill, and thank you all for joining us again today. We continue to see good momentum in the business with solid double-digit fee revenue growth year-to-date and in the second quarter. Our sustained strong performance is a result of our continued focus on our top growth priorities in an environment that remains favorable for commercial real estate services. As a reminder, here are our areas of strategic focus:

revenue and share growth through the delivery of differentiated and best-in-class service to our clients; strategic recruiting and infill M&A to continue to expand our strong global platform; leveraging our strength in our large and growing recurring revenue businesses; and continued margin growth through operational discipline. By these measures the second quarter continued to have quite good momentum. We saw double-digit in fee revenue of 12% year-to-date and 11% in the second quarter primarily led by stronger performance in our leasing, capital markets and property facilities and project management service lines which we call PM/FM.

We also saw strong growth in adjusted EBITDA by 9% year-to-date. I'm just going to speak to the second quarter results in a bit more detail later. In addition to our strong financial performance, I'd like to share a few other notable highlights in the