Newmark Group, Inc. (NASDAQ:NMRK) Q4 2019 Earnings Conference Call - Final Transcript

Feb 13, 2020 • 10:00 am ET


Newmark Group, Inc. (NASDAQ:NMRK) Q4 2019 Earnings Conference Call - Final Transcript


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Good morning. My name is Julianne, and I will be your conference operator today. At this time, I would like to welcome everyone to the Newmark's Fourth Quarter 2019 Earnings Conference Call. [Operator Instructions] Thank you.

I will now turn the call over to Jason Harbes, VP of Investor Relations. Sir, you may begin when you're ready.

Jason Harbes

Thank you, and good morning. We issued our fourth quarter 2019 financial results press release and a presentation summarizing these results this morning. You can find these documents at Unless otherwise stated, the results provided on today's call compare only the fourth quarter of full year of 2019 with the year-earlier period. We will be referring to our results on this call only on an adjusted earnings basis unless otherwise stated. We may also refer to adjusted EBITDA. Please see today's press release for results under generally accepted accounting principles or GAAP. Please see the sections in the back of today's press release for the complete definitions of any such non-GAAP terms, reconciliations of these items, the corresponding GAAP results and how, when and why management uses them.

Additional information with respect to our GAAP and non-GAAP results mentioned on today's call is available on our website and in our investor presentation. Any outlook discussed on today's call assumes no material acquisitions, share repurchases or meaningful changes in the company's stock price. I also remind you that information on this call regarding our business that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934 as amended. Such statements involve risks and uncertainties.

Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark's Securities and Exchange Commission filings, including, but not limited to, the risk factors set forth in our most recent Form 10-K, Form 10-Q or Form 8-K filings.

I'm now happy to turn the call over to our host, Barry Gosin, CEO of Newmark Group, Inc.

Barry M. Gosin

Thank you, Jason. Good morning, and thank you for joining us for Newmark's Fourth Quarter 2019 Conference Call. With me today are Newmark's Chief Financial Officer, Mike Rispoli; and our Chief Strategy Officer, Jeff Day. Newmark generated record revenues of over $2.2 billion in 2019. All of our major business lines improved, with particular strength in investment sales and debt with record volume of $81 billion, an increase of $16 billion or 25% from 2018. Based on the strong productivity of the teams we have added over the past 18 months, we're confident in achieving our near-term target of $100 billion of debt and investment sales. I'm happy to report that the company's Board of Directors declared a qualified dividend of $0.10 per common share. Over the past few years, we have hired over 100 top