Cushman & Wakefield plc (NYSE:CWK) Q2 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 05:00 pm ET

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Cushman & Wakefield plc (NYSE:CWK) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Welcome to Cushman & Wakefield's Second Quarter 2020 Earnings Conference Call. [Operator Instructions]

It is now my pleasure to introduce Len Texter, Head of Investor Relations and Global Controller of Cushman & Wakefield. Mr. Texter, you may begin your conference.

Executive
Len Texter

Thank you, and welcome again to Cushman & Wakefield's second quarter 2020 earnings conference call. Earlier today, we issued a press release announcing our financial results for the period. This release, along with today's presentation, can be found on our Investor Relations website at ir.cushmanwakefield.com.

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 financial measures and definitions of non-GAAP financial measures are found within the tables of our earnings release and appendix of today's presentation. Please note that, throughout the presentation, comparison and growth rates are to comparable periods of 2019 and are in local currency.

For those of you following along with our presentation, we will begin on Page 5.

And with that, I'd like to turn the call over to our Executive Chairman and CEO, Brett White. Brett?

Executive
Brett White

Thanks, Len, and thanks, everyone, for joining our call today. Before I start with a brief review of our second quarter performance, including some color by region and service line, I wanted to let you know that we have a slight revision to our agenda today. I have invited Kevin Thorpe, our Chief Economist, to join us today to provide some commentary on COVID-19's macro impact. Following Kevin's comments, I will add a few final thoughts on our positioning and outlook, and then turn the call over to Duncan to detail our financial results for the quarter.

Before we dive in, I would like to extend a heartfelt thank you to our team of Cushman & Wakefield professionals around the world. It goes without saying that these are unprecedented times, and our employees' perseverance, creativity, and service to our clients continues to go above and beyond. From those who have continued to support frontline operations through the heart of the pandemic, to those delivering new and unprecedented solutions to our clients, I continue to be extremely proud of how our people have risen to the occasion when it matters most.

So with that, let's begin. As you saw from our press release, Cushman & Wakefield reported second quarter fee revenue of $1.2 billion, which represents a 24% year-over-year decline, as a result of the COVID-19 pandemic's economic impact. I'll touch on these themes more in a minute. While the global operating environment remains very uncertain, fee revenue for the quarter was better than our expectations. In the face of these challenges, we were pleased to report second quarter Adjusted EBITDA of $119 million, which represents a reduction of $56 million from 2019.

As