The Real Deal New York

Cushman reports improving financials in first earnings since IPO

Company still operating at net loss, though executives said they’ve paid down debt
By Rich Bockmann | September 06, 2018 08:30AM

225 West Wacker Drive in Chicago and Brett White (Credit: 225 West Wacker)

Cushman & Wakefield reported improving financials in its first quarterly earnings report since going public last month.

Adjusted EBITDA was $168.9 million for the quarter, up 30 percent from the same time last year.

The brokerage reported a net loss of $32.2 million during the second quarter, which was an improvement from the net loss of $43.7 million the company recorded a year earlier, its financial statements show.

Cushman’s been operating at a net loss since TPG Capital acquired the company in 2015 and loaded it with debt as the private equity company made preparations to take it public.

But that loss has slowly been improving each year and company executives on an earnings call early Wednesday evening said they made strides toward steadying the balance sheet.

Revenues climbed 16 percent year-over-year to $1.97 billion, and costs grew 12 percent to $1.94 billion, leaving operating income of $32.5 million for the quarter.

The quarter’s net loss was largely attributable to Cushman’s interest expenses, which grew from $44 million in the second quarter of last year to $52 million during the same time this year.

Cushman’s stock was priced at $17.56 at the close of business on Thursday; its IPO debuted on Aug. 2 at $17 a share.