I have formerly spent over 3 years as a trader in U.S. Stock Market and is now semi-stepped down. I work on a full time basis for Seeking Review specializing in quicker moving active shares with a short term view on investment opportunities and trends.
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Latest posts by Jonathon Freitas (see all)
- Hot Stock of the Day: Easterly Government Properties Inc (NYSE: DEA) - August 18, 2019
- Stock under Consideration: CoreCivic Inc (NYSE: CXW) - August 18, 2019
- Active Stock’s Momentum: Cushman & Wakefield plc (NYSE: CWK) - August 18, 2019
CHICAGO, August 18, 2019 – Shares of Cushman & Wakefield plc (NYSE: CWK) inclined 3.28% to $17.30. The stock traded total volume of 259.567K shares lower than the average volume of 904.68K shares.
Cushman & Wakefield (CWK) reported revenue of $1.90B, a boost of $135.30M or 8% over first quarter of 2018. Gross contract costs, mainly in the Property, facilities and project management service line, increased $9.20M. Foreign currency had a $43.90M or 2%, unfavorable impact on Revenue.
Fee revenue was $1.40B, a boost of $155.90M or 13% on a local currency basis over first quarter 2018, reflecting increases mainly in Property, facilities and project management and Leasing. Property, facilities and project management Fee revenue increased $108.90M or 18% on a local currency basis, driven by an Americas increase of $62.50M or 16%, on a local currency basis, with the remainder of the Fee revenue growth mainly in APAC. Leasing Fee revenue increased $59.40M or 19%, on a local currency basis, driven by an Americas increase of $52.50M or 21%, on a local currency basis, with the remainder of the Fee revenue growth mainly in EMEA.
Operating expenses were $1.90B, a boost of $79.40M or 4%. The increase in operating expenses reflected increased costs associated with revenue growth.
Fee-based operating expenses, excluding Depreciation and amortization, integration and other costs related to acquisitions and stock-based compensation, were $1.30B, a 12% increase on a local currency basis. The increase in Fee-based operating expenses reflected higher cost of services associated with Fee revenue growth.
Net interest expense was $37.20M, a decrease of $7.20M, driven by lower average borrowings during the quarter.
Benefit from income taxes
The net benefit from income taxes was $40.90M, a boost of $8.90M. The increase is driven mainly by a change in the mix of geographical earnings from the prior period and release of valuation allowances.
Net loss and Adjusted EBITDA
Net loss was $20.90M, an improvement of $72.00M, mainly driven by stronger operating results, lower integration costs and a higher benefit from income taxes.
Adjusted EBITDA was $88.40M, a boost of $13.60M or 19%, on a local currency basis, driven by the increase in Fee revenue surpassing the increase in Fee-based operating expenses. Adjusted EBITDA margin, calculated on a Fee revenue basis, was 6.4%, contrast to 6.0% in the first quarter of 2018, driven by Fee revenue mix and operating leverage.
- The Company’s outstanding 2018 First Lien debt, net of deferred financing fees, was about $2.70B as of March 31, 2019, which net of cash and cash equivalents, resulted in a net debt position of about $2.20B.
- Liquidity at the end of the first quarter was $1.20B, counting availability on our undrawn revolving credit facility of $810.0M and cash and cash equivalents of $411.00M.
CWK has the market capitalization of $3.72B. The return on assets ratio of the Company was -1.20% while its return on investment ratio stands at 0.20%. Price to sales ratio was 0.44 while 67.10% of the stock was owned by institutional investors.