CWK - Earnings call transcript Q1 2021 | Cushman & Wakefield plc

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Operator

Greetings. Welcome to Cushman & Wakefield's First Quarter 2021 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] It is now my pleasure to introduce Mr. Investor Global of & for Head Wakefield. Texter, Relations Controller and Cushman Len Mr. begin conference. you the Texter, may

Len Texter

Thank welcome we XXXX the can earnings release you, be first our period. conference Wakefield's and announcing statements our with call. again This on Investor to found release, should Earlier today's differ results on today, future presentation financial contains Today's issued labeled along press & a forward-looking for Cushman presentation, Relations website statements. only, of estimates at considered materially. estimates ir.cushmanwakefield.com. statements be Please current based and turn events. may and These to the page results forecasts quarter forward-looking actual

of to currencies. SEC within found financial financial of today's of earnings we of GAAP note measures financial to of the During throughout the measures definitions our as tables non-GAAP non-GAAP rates guidelines. and comparison will and XXXX non-GAAP comparable Reconciliations are that outlined release are presentation. by please refer are to growth local in presentation, periods call, Also, today's and financial measures appendix in

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

Brett White

to you thank and joining Len you, us today. everyone Thank

times. for and our determination Before a service expert & recognized challenging we've to our team COVID-XX, as Since the them Wakefield been to of Wakefield like to clients quarter of in first starting continued help to navigate advice companies our the turn our with industry, the Cushman beginning for world professionals leader Cushman & to these as I'd performance, continue again pandemic. their thank around throughout the

this our that we help recovery. continue role to clients play We will as through

with are our quarter We strong very to off start are to XXXX. and a performance pleased first

rate buildings of all year service a for fee-based markets savings lowest the of XX% year. Brokerage our half since last of for PM/FM we tenants. and segments This percentage our was of reported trough and significant of Throughout XX% revenue result the of down revenue the prior keeping the were continued delivery cost capital was trends business. of year-over-year leasing Adjusted to total for and source but safe essential prior to revenue facility and the second X% supporting year, continued Revenue across billion, year-over-year. we lines. reconfiguring as cleaning well providing just ahead quarter, million ensure represent be respectively and X% teams and the the by For decline expected quarter, buildings is across been X% expectations. are quarter services down lines with portfolio. open, the retail than streams ahead EBITDA $X.X offices fee over $XXX better of These down have to contractual a service stability. for the have clients pandemic, in outlets our quarter seen social distancing, enhanced of

quarter. On that firms and for on existing first the we provides to global comprehensive benefit one is services continues In balance, to Global from Services of these new and business outsourcing three addition, renew in Cushman Occupier to client & basis. trends, solutions win expect scaled large continue engagements outsourcing as assignments Wakefield the our a

others, between. in in continues on of US online a shopping, examples call, the in from absorbed the with the shift to and XX Continuing feet square clearest space to XXXX. stated degrees varying strong the Industrial be benefit of in million more of quarter recovery property sector industrial performance last performance some sectors, than performer. earnings of to is first one sector weak we As uneven our strong

of demand were last terms space. on record quarters the industrial in among highest few readings fact, the warehouse In for

centers, the sciences, and data of trends benefiting we industrial, continue other is life these beyond. expect XXXX from middle requirements, for green accelerating a and we In apartments strong do to trends, to that remainder office, course, space near-term self-storage are secular addition sectors emerging. in and shifts to are fundamentals shoots remain less said, difficult of clear to pandemic. In continue That as the do of which, businesses see assess

March The back first Since most point has XXXX the using clearly to expect X.X strong job economists employment, jobs rebounding gains growth office million US continue is April from as on office strength. the point added economy in low is XXXX, using which the through this forward. and

will office office buildings of thesis people work that assuming intact. other again, repopulate. remotely this from jobs remains creating is even event US sector Now a will that it words, office fully In the economy post-COVID, more only matter recover the is before time our

The in second we green the tour mention I'll gets that clearly people, an out increase tenant is as of more seeing shoot rolled vaccine are office space. to activity

activity March tour and in Our Branded in still year-end, Also, from the saw we office. versus renewals dynamics should an XXXX, in the there a leasing. beginning activity. is levels, into increase solid These the volume activity activity internal right the a disruption we broader tracking of year. high leasing to increase in shows at definitely a well of year is The normal this indicator an as return noted short-term as pre-pandemic but into leading leasing significantly abnormally translate pent-up direction. it's later as were percentage accelerated tour as in tours churn demand tenant down is to that trending up the for

show first volume reported RCA, to encouraging Following near according of third of quarter well volume with rates, period seasonally over despite the long-term cap slowest real pent-up demand being the of QX rate XXXX that assets, the volume demand December, billion $XX gap, is estate was above yield record the capital. year. the with remain bonds, and favorable drivers which continue in month and the pent-up of second for quarter attractive cross-border Demand low markets capital momentum interest for from to spread

savings with last well organization and better with optimize the Investor enable operating months strategically in outsourcing and to out entire time, and in for technology. to on Last actions, hosted year, transactional across COVID match more just sort to savings an the enhance decisions. even need global organization. early is March the the profitability are million these XXXX. year just that we well of has results that that our a service faster, are efforts evident to a key in as of In delivery continue short, companies work ranging ours. and our year businesses build the a it operating permanent for achieved leaner, identified advantage become was the of optimization $XXX we unveiled streamlining each agility increased bodes track the to dynamic, permanent actions Day million efficient these had strategic will initiatives additional to number an business represent our six we from a initiatives improve through our At we a advice and efficiency These as which like becoming that organization. our very of a that volatility model compared to to us nearly ago. a done our marketplace, of businesses as achieve of business realign work organizations connection event. flexible as In significantly, both for leverage our strategic significant good thing one is navigate through These business recovery in $XXX business in speed problem automation solving and while included Additionally, functions We

in and forward look directly. A as permanent million cost we As XXXX, over significant we actions will a operating will $XXX in we believe have range model rising two and the have but past taken the our expansion we a executed of in reduction disproportionately accelerate significant tide the years, should our of every enter will we our to but lift years. competitor coming margin aid firmly business, optimize more

Lastly, the year. slightly point overlooked Wakefield past I'd call to Neil, Cushman one & that's about before the to I been like last turn emphasize over

integration. with in of We are forefront and on the acquisitions capabilities industry-leading terms

merger a and track have We have infill broker record demonstrated deals of since team M&A M&A accretive completed XX and onboarding. the

that platform lines. distinct also and volatility We while white experience geographies companies a of periods scale additional across the have the opportunity can of solutions in this up a of our result capitalized I can fill as few bring and service well for firms a deploy to global advantage as our space strategic. growing drive on are one because that

of be and our resources the to Cushman clients challenges our strong our our over to during available very expertise, continue period. capital avail As the solve capability, this scale position holistic global proud this & share you I an each Cushman challenging augment acquisition, as throughout we near-term growth to of likely team execution the Wakefield's face know, uneven and day. again. market our billion our in let $X intelligence me Neil? to challenges more like with solidified opportunities an will what the Neil have firms consolidation quarter. in to you, currently XXXX, to and will thought and that And already recovery, industry and Wakefield have & over been Thank liquidity be the themselves Despite through leadership important of recovery. clients. that, never be turn to we have believe call there faced detail

Neil Johnston

adjusted of Fee Overall, the Brett, we encouraged XXXX. to XXXX. good Thanks, first were X%, the while million to afternoon, $X.X everyone. XX% EBITDA up of was was $XXX as quarter very down with billion start and strong for revenue compared

stream. generates to first a through from facility both up last of basis by by demand Americas. performance lower respectively share COVID-related In the our first and first quarter, look and This were of X% per expense brokerage reductions for quarter the APAC. EBITDA a $X.XX, and services Americas This quarter. our of X.X% variety expanded primarily valuation $X.XX up offset compared services of or revenue. adjusted line, stable the to quarter. non-fee business up XXX cost PM/FM reflecting our facility impact solid subcontract represent for earners flow Within revenue half facility service continued and at under on bonus compared a demonstrates just our fee PM/FM, we as revenue earnings year. of our a margin services the the over in cash was year-over-year other the Our excellent than points service lines Taking operations margin performance Adjusted in more fee XXXX, operating ago. in was perform year revenues typically services higher services, the X% In the cleaning

tenants favorable trend longer-term This the sectors, we in continue short-term as we leasing pushed we markets which certainly revenue encouraging. the which to For at first near quarter expectations term in between Capital our markets. to renewals. the investments post-COVID. requirements saw Further, quarter In in area reportable we environment markets, an office than strength first Americas. XXXX, expectations. for sector segments, where is of the outlook owners capital across non-office continue Leasing year-end from industrial balance, month-to-month number well. and noted a and seen away momentum of particularly up abnormally capital return year-end clear hold renewals continue three of The Leasing into The XX% see Capital at our a both respectively, assess XXXX for continues and of and and is occupiers spread high the be markets we've carried ongoing declined in quarter, the but saw X% office remains better On to price less requirements the was an capital all the in

trend, the is the impact While our timing of as quarter do for deal first year the quarter the remain and quarter first can results. positive a and year slowest continue cautiously results full size we optimistic

Revenue as EMEA PM/FM results X%, segments our In in initiatives. both were positive our Adjusted efficiency X%. APAC strong overall, X% in down than X%, by APAC segment. due leasing saw financial the EBITDA of down growth both at more service down growth PM/FM our was of China Hong significantly to was while and X%, in to in primarily with segments in EMEA, brokerage. was offset due activity all Kong. in X% up brokerage the up Looking decline line and Americas

Turning now to operating efficiency.

half discipline execution. pleased our both spending. We are in delivered million $XX discretionary from savings continued including in these spend cost third-party during We the on efficiency of strong quarter, temporary continued entertainment for part-time events, other travel, reductions, furloughs represent and work savings staff the suppliers, which initiatives half operating savings the as Roughly as while savings, with permanent includes reductions and schedules. quarter represent of well

sufficient year, savings fourth temporary on up. of outlined throughout cost a and as $XX XXXX we will normal quarter. much to our call, the be $XXX which these that anticipate activity to principally second initiatives annual cost this We third savings totaled and not unwind in the completely efficiency the quarter initiatives will These a of in within slower more this of results be savings operating recovery the expense, As headwind temporary cover the bonus picks the occur return our of will in year. quarters, the budget to about offset will But impact million to drag impact million. first due the advances unwind

principally, are full-year thinking While point, we we how provide I the to relates the it revenue. about not this following to for as at help providing directionally the wanted remarks guidance year, to are outlook frame

lines. to and earned the second said, Given expect for of near-term the the up revenue to revenue portion that sight full service remains year of we That year. have in environment of revenue XXXX line brokerage continue trends fact fee our to that this a being brokerage outlook be is in do our the significant we business versus the year limited half uncertain, full-year

PM/FM believe year. expected a recover the we digits levels in recovery any to in brokerage XXXX expect the XXXX. to quarter is during be While not in over grow we will do for brokerage full low-to-mid-single there time, revenue

our to sheet. balance turning Finally,

$X financial on billion outstanding $X on our ended billion We billion. cash credit remains availability position of no borrowings and revolving the liquidity, $X on had of with revolver. consisting strong. Our We quarter first our of facility hand of

positioned operator today's be should portfolio globally. M&A With of we in-fill Q&A We that, call the liquidity, continue to well the given the back further portion enhance active Operator? arise. services are for to our turn exploring opportunities opportunities our to of I'll And in call.

Operator

from Our Paolone first Instructions] [Operator question Anthony comes JPMorgan. with proceed. Please

Anthony Paolone

question the the first against relates some My net of to you. savings, Thank drags.

year. So, but you for million savings net $XX the $XX first million the mentioned of of quarter, drag in

XQ it or having should So, looking $XXX I XQ to am headwinds about we as of think million wrong? at

Neil Johnston

of No. of that the you Tony, in the steady think temporary, way first the all, at to first if that was is, half in quarter. quarter, about first million steady - basically, look it permanent $XX occurred but the

As we will our headwind to look there year, be $XX balance the of bonus. million related at a the

million of is million permanent full the be of reversal savings. there over So temporary there'll year, $XXX $XXX savings, a

coming So, is other, two the and then in. those headwind the offset million to back will $XX bonus a each related

Anthony Paolone

Okay.

just to And right that. we that should I looking the that, it Do from fairly will as Okay. the you as or that trends how front? seasonality? about any sequential relates we through normal now, is think to think then thoughts XQ topline, how think on XQ about think looking are right

Neil Johnston

Yeah. Sure.

So, quarter, say, based is growth last exactly we second expect, we quarter do the sequential over do I into difficult on say as is always sequential to our expect but It's five quarter. first first have we so quarter prior brokerage in normal brokerage smallest quarters. - what year, seen from growth

Anthony Paolone

then And Brett. question Okay. last for

made more had What associated few years, like opportunities? you these residential out of of strategic side. priorities of are As the areas the the your in pre-pandemic, where I It next the opportunities? about on seems placement. what the I terms There's often you looking see see as name COVID key sort out some co-working. days of you most do think see and with coming big as see debt think acquisitions your you you sort

Brett White

our from wholly priorities, strategic our that unchanged Tony, say, would they where were I pre-COVID. Yeah, objectives, are

we and and now, both for next us or the year some by which we will believe can come a to in-fill platform white two market you have with these or as know, in about many the foremost, we fill to our still and in-fill that areas is over space service First years. that have we've benefit, line, we opportunities time And spoken geographically acquisitions. of

We interesting tracking in at are opportunities a the market number the of moment.

priority So in-fill for M&A key a us. remains

Second efficiency. priority remains for us

playing for in has corporate broader margin continue it outsourcing think I to us solutions the enhancement an be In we at run a build we're definitely So, think lot marketplace, technology on think, well. should the lot and see how where been, spent that. there two in we that tool tech an us, organization. very I role opportunity so. the as using by a evolution it will workplace on and topic world, efficient creative is be and That people of business Bill the, is more about as good the to time a for workplace, there's Knightly a think how opportunity people value driving ever-bigger of there We property into in last the about years great think

in well institutional in our to side really in and Now, marketplace more now is all of being also and both systems the investor our right just of ourselves comments, we're corporate by because the fewer said as accrete large people, large side we've positioned we controlled and occupier investments owners. peers, the two but made prepared the and on technology fewer more the where and institutional share,

of all few really principles the last years. out into we've in that the So strategic laid core well plays

Anthony Paolone

Okay. Thanks, Brett.

Brett White

You bet.

Operator

question next Our William Stephen Blair. with comes from Sheldon proceed. Please

Stephen Sheldon

Hey, provide transactional like came first in well seems don't expectations your thanks. you in above quarter. guidance, I just but know activity the

So, about see I over transactional year? of about level where you the optimism right I months it remainder what guess, year ago. the of in have the couple stood guess, type would the the compares become activity how a curious now, lines of rest more to optimistic you of have your can

Brett White

going guidance. a let and would then right. you're Remind But it it from from me we're I Stephen. too. that level say Neil, high to level, any not But high hit hand Sure, to a give

were has and certainly that's recovery entirely of to what the vaccine. the near mass accelerated of rollout of and months from last over believe, changed we wholly three the has that year, end related, we what the the expecting pace So, last is

thinking around comments, he is the So, there months I lot marketplace more uncertainty play. yes, Neil while optimistic XXXX. three a were is that? in there sense are about across in Those XXXX is of Neil, as to certainty would of to more has uncertainty in product uncertainty as headwinds XXXX certainly the types lot across you into there want as anything mentioned But here. on is that say its and and already all are the And add a our some and is well, there we in still his and way a recovery globally moment know still ago, that, some we while, that there's are marketplace. there than ago, come of tailwinds you mentioned

Neil Johnston

think it Brett. I very Yeah, comprehensive, was to nothing add.

Stephen Sheldon

Great. I sense guess, the would in for across visibility your seeing you're the pipeline spread bid-ask what maybe And on you of that know then terms the during quarter, if sales? first trended just regions curious capital and of how be markets, what's to property there on different have

Brett White

Fourth of which know RCA we business know, the the and I was clear, QX the this was the the Sure. certainly the than first surprisingly year and other anecdotal all lines last had back. of think you that data and of major market come Well, regions as we callers markets and strong capital very it's year, projected. to know certainly watching hearing by from quarter had was rest projected, data better

cure there's much lot the six of as was I growing short to a and of today of that's a will point-in-time doing, capital beginning I tough nasty to pandemic in growing investors don't of as as what institutional But recession and the short consensus will will created and that out months period people space, was there and markets think and I relatively office this, investors time. there ago, institutional the well. there to stronger future Stephen, this that I a of as course. look part how are questions consensus was is through by And a think relatively the [indiscernible] this hold. around COVID. from as there way, And the there that markets is a is use this exceptions is event are that - that So, is was think think speaking,

by that this be We if by I shed office this from half that peers end have of at our think all XXXX will bit of in reported, already all of this sooner. we heard regained who generally mid-XXXX, the year. not have will and point vacancy in you've been all jobs a feel the feel fully rents using the first recovered

All to in a says a at if high-quality rent investor, there's in of assets the where they attractive. are, over yields an next turnover the that roll look pretty looking high-quality months location, then a you're and not asset, of XX are lot the

feel not a we in it's good markets. about like quarter, the was we going to where So, back trend. the to Look, capital be but it

Stephen Sheldon

taking Appreciate color. Thanks for the Great. my questions.

Brett White

You bet.

Operator

comes question. question Stanley. next Morgan from Vikram your proceed Our with Malhotra Please with

Vikram Malhotra

the taking for Maybe Thanks just first question. one.

M&A last would white You you that and greatest had also Cushman's been the ask maybe wondering over region trying or just that years. segments? last few as done And the the because market I'm mentioned talked to say through about you've you fill that pandemic where space over years. you've gain, and we the few the share emerge, of sort I

wondering just as would emerge you've I'm out, where you say gained you share? So,

Brett White

Okay.

answer the of question So question. me the M&A your absent component let

have major I we a capital space. markets; we're the just leader gaining years Company in gained share terms share a answer capital but in markets, ago means by player me today, few the think question four global years. or would last of we in was Let This first, are. in the the where no market say,

so years. market bit share over grown the markets' And few capital quite certainly a has last

any extent, well. also, on corporate there table we And to share multinational years to four party are bid comes we're complex large outsourcing the five or ago, relatively great outsourcing. to that the years were at to global new anymore. gaining large market, corporate party as We a We're the not and new

for the past may multinational today and few marketplace, as down the think global trends we It's with We as an peers I the ourselves they accrete it across be a they see brokerage also, is that as years trends lines a I track which as years number investor an extinct even in whatever for very very today firms deliverable, certainly of a one. three truly of that have can very share to structural narrows large, need we a expect all know, record been we And the that a large share really three agree long compete marketplace you've difficult powerhouses. across their as strong industry, which and few our half-built are you to business true against share firm transaction would the outcomes for client the business. or these in two the is a firms, field of were global have before, very those clients. platform, full the we what just services gains and to quality are And though, or a that of of a structural think the seen indicative to time. that in - have analyst, going suite to And in

Vikram Malhotra

Fair enough.

the industrial of On about topic growth I'm corporate as obviously if to in sense - office in the see large what's and the the grow users. in space, opportunity to of you to we PM/FM? PM/FM segment you that I'm industrial now you're more on two in the with wondering pertains automation kind side, PM/FM, as to warehouses curious talk of on your alluded peers, a get lot competing it your that the

Brett White

particular, we've and Industrials a PM/FM now which it's simply a an would for percentage wasn't industrials space this. companies you, result and sweet spot Historically, It's we Cassidy one give firms. a the the - - work strong higher they've some question deliberate, And us of put we most legacy are is was have together answer our in been it's in industrial the love is to for of very I have for been than the so that of Turley, great in in it and a here PM FM work had our time. US. and

by the the trend of the in a was Now, four growth that over having major toward years space been business. industrial of firms trend ignored is last said, the that the not any

have to industrial the focused that for our me currently does So, the on we interesting have me has But and like in was manufacturing, out strength and different here at is Wakefield in Cushman what Company growing heavily logistics. been in others was business. industrials had & and what

I everyone right we've So, of rapidly vertical for growing across the some is the one And expand our and are strong three that vertical The good are pursuing in now. very for on knows, had should is investing that's an businesses globe. to our logistics to time course, it. phone say, us together. foothold a area are finally, just major we news intend that, that regions of in materially industrial It's we three - priorities continue our

Vikram Malhotra

That makes sense. And then just last one.

the office office from One around peers your of desire by second, or on of terms integrating in on view prospects. topics. as thoughts to rents, return have related what's little mid to You some office thoughts of your curious use then ability talked some some flex 'XX kind may say, Cushman's been you a Fundamentally, is what your recover in lot and - to that? hearing I'm the businesses, of you're more that, actually there just two the change debate And tenants. as office to your those taking large on work and get as active maybe certainly updated or a of it topic, do the to bit about six just of was months but ago, likely is

Brett White

Right.

take me those in let order. So

mirror very three I be space for a the shed that in on the is more view that A past a is future in large folks because the occupier the clear, changed this other their cataloging rearview very, fairly space sublease us of week, past you they like and because global this Class in in start last the months, soon, begin to been think, inexpensive occupiers CEO has markets to into So the and Anecdotally, warehouse it's to view, it's great positive XX market the asked of that will house very your acquiring work-from-home was on with A office four very in I market. house to sublease high-quality Class and occupier, to the past major to model large has months us by certainly the and call that months. individual in the a space extent and office a would so materially

You never that heard would ago. months six have

to But office office office work else. and work-from-home to And clear stay. certainly right I work the higher it's office allow occupiers that in are stay, talk would We're among to or who we a here the work-from-home in to well today, be we now have doesn't to their now here component market is corporate and view where to on you corporate remotely have to be the going here higher really four work pre-pandemic so versus around very And I they given six that component percentage start to workforce, There XX% very how months work months last I really I somewhere that now as many post-pandemic. is there doesn't is from that majority the think XX% that a workers of how say tell a from to well. is a work-from-home major permission people workforce, from our well. to there of agile really X% sit of they has maybe working But occasionally. really the users percentage would of is us think days remotely permanently, would are choice the to is be space moved workforce buildings allowed more work being

other are Manhattan Class A high towns We see cities. in Midtown going major or ghost rises not to of

in flex question to part second to so on then getting of space. of the And terms your

three peers So flex think two months, last we've I the investments companies. are seen in into investments. our of And make smart those

to With space, think, The of and changed. the but market and model flex model the troubled, that, has sublet A that has been think very is opined the COVID. tenants, leases long-dated and has redefined co-working small on through model, I that I buildings Class

- the think are term experience but do. not more bit. client I corporate space a providers as flex of the maybe years a client tech to co-work are ago, their things focused inside And building redefine And but component by space so smaller importantly other owners also, viewed us, see small are what just one, the lease through a to entire beginning some through on buildings, tenant, occupiers this it's and is footprint. are a component, really And accelerated institutional we property a experience. or and now occupiers, of they number but to started a more helping at now the Corporate way variable high-quality a look beginning that

that see So, that footprint always going what will forward their space is there percentage a really we're be be look just I that's flex think to flex and large will going term leased when of at shorter-term occupiers, corporate space, you in space.

admire we smart peers some did, think our So, what moves. were of I they

now time we've are on done for variable we focused right very to some lease is something how very now. We we're that provide clients something on and also focused and it's opportunity that our

So, their be at they expect solutions our area active very how us bring on footprints clients you should look in to flexible including flex to and office. that

Vikram Malhotra

color. Thanks the for much Great. so all

Operator

Our your next question comes with question. Credit from proceed with Suisse. Please Doug Harter

Douglas Harter

environment recover? in talk the recruiting you Thanks. capital the volume about Can markets now has that started transaction fee earners for to

Brett White

Sure.

an an typical recession, robust a see that's cooled certainly in see are to much off a fee pay earners the two, reasons. It So years movement another the what for of a of as fee more happens talent. saw the there what a, beginning a to is, now you two business, years little. months, heat movement because recession recession, a market XX environment in more get still One And right is recession. we that would more over - fully past is to three robust say just in the in off ago tends and emerge The to next every It's it's I X.X factor the cool a earners for looks be of for would the in firms. we're change brokerage to fairly for still recruiting. risky firms. for bit more as Right in amount ago. typically the perhaps firms years what from always I now, should functioning out material which operating market environment But in marketplace, active and that we like expect a recovery, into three are or normal recession. up movement fee among is you fee marketplace very reluctant when willing already market to is risk is in the depressed earner earners

in of & recruiting. really blanket business we're Cushman For the Wakefield, not just

that share us, out, so that For recruiting not either where to is that have very feel space is brokers in it our brokerage type fit a we white think where strategic and be. build to we we want option product should that to very, into our we verticals specific

we very recruiting is we're very just for in to opportunities can to movement specific expect brokers. So XXXX people, that we some great business that and and really us, need. it's of that targeted the not a fill will be XXXX there would marketplace in market specific hire - really in but a blanket active. And see relatively I the activity It's

Douglas Harter

Thank you. Great.

Operator

next with Bank Funk question of proceed. Michael comes Please from Our America.

Michael Funk

could. evening. good couple if you A Hi, the Thank for questions. Yeah. I

of today, the capabilities, believe next and have record comments forward, would want earlier and couple the capital be your to that capabilities, about track if but you areas is potentially mix Cushman $X useful maybe by to your even bought, years. traditional love market going you are line thoughts in service right the there So, to the then that there, and to then target be M&A the get billion doesn't in what deploy the could meet by on

Brett White

the high fulcrums, now question in-fill the are we right tell we opportunities next focused very which looking answer for and currently as as or marketplace information, that we me there those we attractive lean three weren't this from be now a on And actively focused in new or this, a are very are let do we've in is the few a wanted that ago. do or of relatively different years either But three into competitive verticals. weren't five years And we Well, disclose. to to will that are you over ago way work are number some today we've three years. verticals what's completed I very see five today say ago on forward in I going not focused are work to five years priority identified of verticals would years would Sure. say because additional party, to for to and in on two the opportunities that M&A verticals the in, the areas we I going am marketplace that

high-growth instance, marketplace, Each a very earners try very going And our I statistics mentioned secret deployment work of at and our a that in we we and so to capital as who targeted. growth very, be the where that look about and we're deliberate portfolio focused very, all have, that a take vertical of is very area. logistics strategy businesses don't earlier, in any to we very M&A of for this focused, in strategy deploy verticals, across the So, either and capital look at we know, we fee decisions industrial so, make is, it's can year, groups very good deployment think take capital. we're of teams you

we in-fill be Looking right we're joint We do venture. focused discrete few that. outsized opportunity also provide do of in can and to on, a areas very and at of also are teams fee the all for M&A few as firm. us available those we that And I opportunities can earners, mentioned, now might five believe a very good that

Michael Funk

temporary you to of help think Understood. I called more with about cost the think help Thank that you can assume you. about it's cost And you reversal year? throughout us XXXX. us timing I unwind, sequencing then going sequencing for that, I loaded, XXX? back the of T&E temporary But the Can the think of the back-end certainly out mean XXX portion.

Neil Johnston

Sure.

how delay about easiest extent on so the think quickly will be see I Michael, think fairly even. in cost it did to depend it a certain - temporary just it, see recover. way think brokerage coming will is back, about we to a to We really

So, headwind, quarter well. second I the the and the in bonus, the would - then And $XX that quarter. second the of and that the say in be third majority will quarter will also of be will that in terms third million as

the bulk the $XXX over the that would I the each with of happening say, balance it $XXX million, So, middle two year, in million other half.

Michael Funk

I one please. Understood. And could, if more then

months so call of even the of surprising to or with particularly out recovery there ago. than You areas far, the pace accelerated much any lines the property maybe few you a mentioned recovery Are pace there, service lines? faster expected the specific

Brett White

Yeah. clear And I want as as to this possible be on point.

three of So, perspective what our pace in our going months recovery changed last is on has from the outlook the forward. the

improvement would and call we I'd the Because almost saw but and a across great we It line service did in our improvement not basically us and first a that markets was to bottom the marketplace stabilization what revenues show quarter incremental we QX the out, lines. job industry on it of a in the recovery. That recovery. all that XXXX year and went we what for is first What stabilization hopeful incremental wild and improvement some efficiency So, were is, last than describe how thought of I quarter. you the was of flattened different would expected year, and straight saw we such think as great. that play incremental as is we some about better would across revenues. in really a the QX that about

that that case. be think indeed more the I feel we now will optimistic

all you them. of see wild the when because - across increases across see businesses, businesses, don't across of improvement you question portfolio what almost specific our of the look is any Your you

with question, make over I'll exception be up management project property your a at but point looking answer what leasing back business, it's is of tours year, occupiers from property green from what specifically more more was, prior than the indicator still tours. were businesses, corporate first to space. well was down In not see improvement peaks recovery so quarter and might is third the leading We're the normal, the for end last helpful. what one almost more shoots we a real did that, that quarter future And all at of seeing are back no in of for leasing. the the of It's doubt Yeah, almost expected. course, in showed we our by and but it not there they year interest and in to lot that to in

Michael Funk

you Thank very Great. the questions. much for

Operator

you. Thank

session Mr. today. like Brett have call would of closing our to back I We White comments. for the to come the question-and-answer end over to turn

Brett White

year really excited about to Well, months. Terrific. three dialing in forward talking QX, happy with for the to you in. look and We're thanks, everyone,

Operator

does conference conclude today's teleconference. The

at this time You and thank and have participation may your your disconnect great lines a you for day.

Cushman & Wakefield (CWK) 9 May 212021 Q1 Earnings call transcript