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Jones Lang LaSalle Reports First-Quarter 2013 Adjusted EPS of $0.36



     Jones Lang LaSalle Reports First-Quarter 2013 Adjusted EPS of $0.36

Revenue of $856 million; fee revenue of $781 million

PR Newswire

CHICAGO, April 30, 2013

CHICAGO, April 30, 2013 /PRNewswire/ -- Jones Lang LaSalle Incorporated (NYSE:
JLL) today reported adjusted earnings per share ("EPS") of $0.36 for the first
quarter of 2013.  First-quarter revenue of $856 million was up 6 percent in
local currency.  Fee revenue was $781 million, an increase of 6 percent.

  o Revenue growth of 6 percent achieved against strong prior-year quarter
  o Capital Markets & Hotels outperformed markets in the Americas and EMEA
  o Solid EMEA performance driven by 12 percent fee revenue growth and cost
    discipline
  o Stable underlying business performance for LaSalle Investment Management
    against strong prior year, which had $20 million of equity earnings and
    incentive fees
  o 10 percent increase in semi-annual dividend to $0.22 per share reflects
    confidence in cash generation

Summary Financial Results
                                                  Three Months Ended March 31,
   ($ in millions, except per share data)
                                                  2013            2012
Revenue                                           $    856        $   813
Fee Revenue^1                                     $    781        $   745
Adjusted Net Income^2                             $      16       $     22
U.S. GAAP Net Income                              $      13       $     14
Adjusted Earnings per Share^2                     $   0.36        $  0.50
Earnings per Share                                $   0.29        $  0.31
Adjusted EBITDA^3                                 $      48       $     55
     Adjusted EBITDA, Real Estate Services        $     34        $    27
     Adjusted EBITDA, LaSalle Investment          $     14        $    28
Management
See Financial Statement Notes (1), (2) and (3) following the Financial
Statements in this news release

 

"We're pleased with our opening quarter, which is in line with our
expectations," said Colin Dyer, President and Chief Executive Officer of Jones
Lang LaSalle.  "The performance of our regional real estate services showed
overall improvement driven by fee revenue growth and cost actions taken last
year.  LaSalle Investment Management maintained good underlying performance
and is positioned to increase assets under management.

Dyer continued, "With markets in a gradual but uneven cyclical upswing, we
continue to grow market share, improve productivity and expand client
relationships.  We remain positive about our prospects for the year." 

Consolidated Revenue
                                          Three Months Ended March 31, %
   ($ in millions, "LC" = local                                        Change
currency)                                                              in LC
                                          2013             2012
Real Estate Services ("RES")
Leasing                                   $    229.2       $  230.2    0%
Capital Markets & Hotels                  120.7            88.7        37%
Property & Facility Management            251.1            240.4       6%
Property & Facility Management            212.1            201.1       7%
Fee Revenue^1
Project & Development Services            113.6            107.5       7%
Project & Development Services            77.1             78.4        (1%)
Fee Revenue^1
Advisory, Consulting and Other            81.7             79.0        5%
     Total RES Revenue                    $    796.3       $   745.8   8%
Total RES Fee Revenue^1                   $   720.8        $  677.4    7%
LaSalle Investment Management
Advisory Fees                             $      56.4      $    57.3   (1%)
Transaction Fees & Other                  3.1              1.8         72%
Incentive Fees                            0.2              8.4         n/m
     Total LaSalle Investment             $      59.7      $    67.5   (11%)
Management Revenue
Total Firm Revenue                        $     856.0      $   813.3   6%
Total Firm Fee Revenue^1                  $    780.5       $   744.9   6%
n/m – not meaningful

Consolidated Q1 Performance Highlights:

  o Consolidated fee revenue growth was driven by a 37 percent increase in
    Capital Markets & Hotels and a 12 percent fee revenue increase in local
    currency for the EMEA region.
  o LaSalle Investment Management's advisory fees showed continued stability
    in advance of growth prospects from new investor mandates.
  o Consolidated operating expenses, excluding restructuring and acquisition
    charges, were $833 million, up 7 percent, primarily due to increased
    compensation costs from a larger employee base and improved performance.

Balance Sheet and Dividend

  o The firm's total net debt was $870 million at quarter end, flat with the
    first quarter last year.
  o Net interest expense for the first quarter was $7.9 million, compared with
    $7.4 million in 2012; the firm's low leverage, investment-grade balance
    sheet generated modest interest expense.
  o Reflecting confidence in the firm's cash generation, the Board of
    Directors announced a semi-annual dividend of $0.22 per share, a 10
    percent increase from the $0.20 per share payment made in December 2012.

Business Segment Performance Highlights

Americas Real Estate Services

Americas Revenue
                                        Three Months Ended  March 31,  %
   ($ in millions, "LC" = local                                        Change
currency)                                                              in LC
                                        2013            2012
Leasing                                 $    152.3      $   149.6      2%
Capital Markets & Hotels                38.7            27.9           39%
Property & Facility Management          108.5           101.4          7%
Property & Facility Management          89.4            85.6           5%
Fee Revenue^1
Project & Development Services          37.9            39.6           (4%)
Project & Development Services          37.7            39.5           (4%)
Fee Revenue^1
Advisory, Consulting and Other          24.1            22.9           6%
     Operating Revenue                  $  361.5        $   341.4      6%
Equity Earnings                         0.2             0.1            n/m
Total Segment Revenue                   $  361.7        $   341.5      6%
Total Segment Fee Revenue^1             $    342.4      $     325.6    5%
n/m – not meaningful

Americas Q1 Performance Highlights:

  o Revenue growth was driven by Capital Markets & Hotels, up 39 percent, as
    market share gains continued.
  o Fee-based operating expenses were $328 million for the year, up a modest 4
    percent.
  o Operating income was $15 million, up from $12 million in 2012.  Operating
    income margin calculated on a fee revenue basis was 4.3 percent, up from
    3.7 percent. 
  o EBITDA was $25 million, up from $22 million in 2012.  EBITDA margin
    calculated on a fee revenue basis was 7.3 percent, up from 6.7 percent.  

EMEA Real Estate Services 

EMEA Revenue                                                         %
                                       Three Months Ended March 31,
   ($ in millions, "LC" = local                                      Change
currency)
                                       2013          2012            in LC
Leasing                                $    48.9     $   47.3        4%
Capital Markets & Hotels               58.2          39.2            50%
Property & Facility Management         42.7          42.6            0%
Property & Facility
Management                             40.4          41.2            (2%)

Fee Revenue^1
Project & Development Services         56.0          50.5            11%
Project & Development Services
                                       24.1          24.2            0%
Fee Revenue^1
Advisory, Consulting and Other         39.1          38.4            3%
     Operating Revenue                 $ 244.9       $   218.0       13%
Equity Earnings                        -             -               n/m
Total Segment Revenue                  $ 244.9       $   218.0       13%
Total Segment Fee Revenue^1            $   210.7     $     190.3     12%
n/m – not meaningful

EMEA Q1 Performance Highlights:

  o Revenue growth was driven by Capital Markets & Hotels and, geographically,
    by Russia and the UK.
  o Fee-based operating expenses were $212 million for the quarter, up 6
    percent in local currency primarily due to increased variable compensation
    from improved transactional performance.
  o Adjusted operating income, which excludes King Sturge amortization, was a
    loss of $1 million, compared with an $8 million loss in 2012. 
  o EBITDA was $3 million, compared with a loss of $4 million in 2012.  EBITDA
    margin calculated on a fee revenue basis was 1.6 percent compared with a
    loss of 2.3 percent last year.

Asia Pacific Real Estate Services 

Asia Pacific Revenue
                                         Three Months Ended March 31,  %
   ($ in millions, "LC" = local                                        Change
currency)                                                              in LC
                                         2013           2012
Leasing                                  $   28.0       $   33.3       (15%)
Capital Markets & Hotels                 23.8           21.6           12%
Property & Facility Management           99.9           96.4           8%
Property & Facility Management
                                         82.3           74.3           14%
Fee Revenue^1
Project & Development Services           19.7           17.4           17%
Project & Development Services
                                         15.3           14.7           7%
Fee Revenue^1
Advisory, Consulting and Other           18.5           17.6           7%
     Operating Revenue                   $   189.9      $   186.3      5%
Equity Earnings                          0.1            0.1            n/m
Total Segment Revenue                    $   190.0      $   186.4      5%
Total Segment Fee Revenue^1              $     168.0    $     161.6    6%
n/m – not meaningful

Asia Pacific Q1 Performance Highlights:

  o Revenue growth was led by annuity growth in Property & Facility Management
    and transactional growth in Capital Markets & Hotels.  Geographically,
    growth was driven by Hong Kong, China and Southeast Asia.
  o Fee-based operating expenses were $166 million for the quarter, up 10
    percent in local currency, principally due to increased compensation costs
    from a higher employee base and annual base compensation increases
    effective in the second quarter of 2012.
  o Operating income was $2 million, compared with $7 million last year. 
    Operating income margin calculated on a fee revenue basis was 1.5 percent,
    compared with 4.3 percent last year.
  o EBITDA was $6 million, compared with $10 million last year.  EBITDA margin
    calculated on a fee revenue basis was 3.3 percent, compared with 6.2
    percent last year.

LaSalle Investment Management

LaSalle Investment
                                        Three Months Ended  March 31,  %
Management Revenue                                                     Change
   ($ in millions, "LC" = local         2013            2012           in LC
currency)
Advisory Fees                           $     56.4      $     57.3     (1%)
Transaction Fees & Other                3.1             1.8            72%
Incentive Fees                          0.2             8.4            n/m
     Operating Revenue                  $     59.7      $     67.5     (11%)
Equity Earnings                         5.2             11.7           (56%)
Total Segment Revenue                   $     64.9      $     79.2     (17%)
n/m – not meaningful

LaSalle Investment Management Q1 Performance Highlights:

  o Advisory fees were $56 million for the quarter, consistent with quarterly
    averages throughout 2012.
  o Operating expenses were $52 million for the quarter, flat with 2012.
  o EBITDA was $14 million for the quarter, a margin of 21.2 percent, compared
    with $28 million in 2012, a margin of 34.8 percent. The year-over-year
    changes in total segment revenue and EBITDA were driven by the movement in
    equity earnings and incentive fees, a combined $5 million in 2013 compared
    with $20 million in 2012.
  o Assets under management were $47.7 billion as of March 31, 2013, compared
    with $47.0 billion at year-end 2012.

About Jones Lang LaSalle
Jones Lang LaSalle (NYSE: JLL) is a professional services and investment
management firm offering specialized real estate services to clients seeking
increased value by owning, occupying and investing in real estate. With annual
revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more
than 1,000 locations worldwide. On behalf of its clients, the firm provides
management and real estate outsourcing services to a property portfolio of 2.6
billion square feet and completed $63 billion in sales, acquisitions and
finance transactions in 2012. Its investment management business, LaSalle
Investment Management, has $47.7 billion of real estate assets under
management. For further information, visit www.jll.com.

200 East Randolph Drive Chicago Illinois 60601 │ 22 Hanover Square London W1A
2BN │ 9 Raffles Place #39-00 Republic Plaza Singapore 048619

Statements in this press release regarding, among other things, future
financial results and performance, achievements, plans and objectives, and
dividend payments may be considered forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
statements involve known and unknown risks, uncertainties and other factors
which may cause actual results, performance, achievements, plans and
objectives of Jones Lang LaSalle to be materially different from those
expressed or implied by such forward-looking statements. Factors that could
cause actual results to differ materially include those discussed under
"Business," "Management's Discussion and Analysis of Financial Condition and
Results of Operations," "Quantitative and Qualitative Disclosures about Market
Risk," and elsewhere in Jones Lang LaSalle's Annual Report on Form 10-K for
the year ended December 31, 2012, and in other reports filed with the
Securities and Exchange Commission. There can be no assurance that future
dividends will be declared since the actual declaration of future dividends,
and the establishment of record and payment dates, remains subject to final
determination by the Company's Board of Directors.  Statements speak only as
of the date of this release. Jones Lang LaSalle expressly disclaims any
obligation or undertaking to update or revise any forward-looking statements
contained herein to reflect any change in Jones Lang LaSalle's expectations or
results, or any change in events.

Conference Call

The firm will conduct a conference call for shareholders, analysts and
investment professionals on Tuesday, April 30 at 6:00 p.m. EDT.

To participate in the conference call, please dial into one of the following
phone numbers five to ten minutes before the start time:

  o U.S. callers:                      +1 877 356 3887
  o International callers:           +1 706 679 7364
  o Pass code:                        35662726

Webcast

Follow these steps to listen to the webcast:

1. You must have a minimum 14.4 Kbps Internet connection

2. Log on to http://www.videonewswire.com/event.asp?id=93442 and follow
instructions

3. Download free Windows Media Player software: (link located under
registration form)

4. If you experience problems listening, send an email to
prnwebcast@multivu.com 

Supplemental Information

Supplemental information regarding the first-quarter 2013 earnings call has
been posted to the Investor Relations section of the company's website: 
www.jll.com.

Conference Call Replay

Available: 9:00 p.m. EDT Tuesday, April 30 through 11:59 p.m. EDT Wednesday,
May 8 at the following numbers:

  o U.S. callers:                      + 1 855 859 2056
  o International callers:           + 1 404 537 3406
  o Pass code:                        35662726

Web Audio Replay

Audio replay will be available for download or stream. This information and
link is also available on the company's website:  www.jll.com.

If you have any questions, email Jones Lang LaSalle's Investor Relations
department at JLLInvestorRelations@am.jll.com.

JONES LANG LASALLE INCORPORATED
Consolidated Statements of Operations
For the Three Months Ended March 31, 2013 and 2012
(in thousands, except share data)
(Unaudited)
                                          Three Months Ended March 31,
                                          2013                2012
Revenue                                   $                   $              
                                           855,988               813,294
Operating expenses:
      Compensation and benefits           563,720             537,516
      Operating, administrative and       249,921             232,596
      other
      Depreciation and amortization       19,079              19,659
      Restructuring and acquisition       3,168               8,952
      charges
                   Total operating        835,888             798,723
                   expenses
                   Operating income       20,100              14,571
Interest expense, net of interest         (7,923)             (7,426)
income
Equity earnings from unconsolidated       5,482               11,848
ventures 
Income before income taxes and            17,659              18,993
noncontrolling interest
Provision for income taxes                4,397               4,824
Net income                                13,262              14,169
Net income attributable to                106                 145
noncontrolling interest
Net income attributable to the Company    $                   $              
                                            13,156                14,024
Net income attributable to common         $                   $              
shareholders                                13,156                14,024
Basic earnings per common share           $                   $              
                                                0.30                  0.32
Basic weighted average shares             44,080,767          43,605,273
outstanding
Diluted earnings per common share         $                   $              
                                                0.29                  0.31
Diluted weighted average shares           45,055,399          44,685,138
outstanding
EBITDA                                    $                   $              
                                            44,555                45,933
Please reference attached financial statement notes.

 

 JONES LANG LASALLE INCORPORATED 
 Segment Operating Results 
 For the Three Months Ended March 31, 2013 and 2012 
 (in thousands) 
 (Unaudited) 
                                             Three Months Ended March 31, 
                                            2013             2012
 REAL ESTATE SERVICES  
       AMERICAS 
        Revenue: 
              Operating revenue             $                $              
                                                   361,467          341,428
              Equity earnings               217              49
              Total segment revenue         361,684          341,477
              Gross contract costs^1        (19,278)         (15,888)
              Total segment fee revenue     342,406          325,589
        Operating expenses: 
              Compensation, operating
             and administrative             336,559          319,676
             expenses 
              Depreciation and              10,453           9,884
             amortization 
              Total segment operating       347,012          329,560
             expenses 
              Gross contract costs^1        (19,278)         (15,888)
              Total fee-based segment       327,734          313,672
             operating expenses 
              Operating income              $                $              
                                                     14,672           11,917
              EBITDA                        $                $              
                                                     25,125           21,801
       EMEA 
        Revenue: 
              Operating revenue             $                $              
                                                   244,905          217,973
              Equity earnings               -                14
              Total segment revenue         244,905          217,987
              Gross contract costs^1        (34,207)         (27,702)
              Total segment fee revenue     210,698          190,285
        Operating expenses: 
              Compensation, operating
             and administrative             241,525          222,369
             expenses 
              Depreciation and              4,983            6,202
             amortization 
              Total segment operating       246,508          228,571
             expenses 
              Gross contract costs^1        (34,207)         (27,702)
              Total fee-based segment       212,301          200,869
             operating expenses 
                                            $                $              
              Operating loss                                        
                                            (1,603)          (10,584)
                                            $                $              
              EBITDA                                                  
                                             3,380           (4,382)
       ASIA PACIFIC 
        Revenue: 
              Operating revenue             $                $              
                                                   189,901          186,362
              Equity earnings               114              52
              Total segment revenue         190,015          186,414
              Gross contract costs^1        (21,997)         (24,820)
              Total segment fee revenue     168,018          161,594
        Operating expenses: 
              Compensation, operating
             and administrative             184,449          176,360
             expenses 
              Depreciation and              3,128            3,088
             amortization 
              Total segment operating       187,577          179,448
             expenses 
              Gross contract costs^1        (21,997)         (24,820)
              Total fee-based segment       165,580          154,628
             operating expenses 
                                            $                $              
              Operating income                                        
                                             2,438            6,966
                                            $                $              
              EBITDA                                                  10,054
                                             5,566
 LASALLE INVESTMENT MANAGEMENT 
        Revenue: 
              Operating revenue             $                $              
                                                     59,715           67,531
              Equity earnings               5,151            11,733
              Total segment revenue         64,866           79,264
        Operating expenses: 
              Compensation, operating
             and administrative             51,107           51,706
             expenses 
              Depreciation and              516              486
             amortization 
              Total segment operating       51,623           52,192
             expenses 
              Operating income              $                $              
                                                     13,243           27,072
              EBITDA                        $                $              
                                                     13,759           27,558
 SEGMENT RECONCILING ITEMS: 
             Total segment revenue          $                $              
                                                   861,470          825,142
             Reclassification of equity     5,482            11,848
             earnings 
                   Total revenue            $                $              
                                                   855,988          813,294
                   Total operating
             expenses before                832,720          789,771
             restructuring charges 
                   Operating income         $                $              
             before restructuring                    23,268           23,523
             charges 
Please reference attached financial
statement notes.

 

JONES LANG LASALLE INCORPORATED
Consolidated Balance Sheets
March 31, 2013, December 31, 2012 and March 31, 2012
(in thousands)
                                   March 31,                    March 31,
                                   2013           December 31,  2012
                                   (Unaudited)    2012          (Unaudited)
ASSETS
Current assets:
  Cash and cash equivalents        $              $             $            
                                   133,470          152,159     101,846
  Trade receivables, net of        913,615        996,681       807,650
  allowances
  Notes and other receivables      104,767        101,952       98,788
  Warehouse receivables            137,445        144,257       -
  Prepaid expenses                 56,646         53,165        52,484
  Deferred tax assets, net         52,050         50,831        49,078
  Other                            21,568         16,484        21,734
               Total current       1,419,561      1,515,529     1,131,580
               assets
Property and equipment, net of     260,961        269,338       244,672
accumulated depreciation
Goodwill, with indefinite useful   1,836,933      1,853,761     1,784,275
lives
Identified intangibles, with
finite useful lives, net of        43,556         45,932        49,241
accumulated amortization
Investments in real estate         272,161        268,107       236,298
ventures 
Long-term receivables              64,698         58,881        53,477
Deferred tax assets, net           189,176        197,892       199,205
Other                              148,201        142,059       130,179
               Total assets        $              $             $        
                                    4,235,247      4,351,499     3,828,927
LIABILITIES AND EQUITY 
Current liabilities:
  Accounts payable and accrued     $              $             $            
  liabilities                      399,832          497,817     403,758
  Accrued compensation             413,705        685,718       381,813
  Short-term borrowings            37,798         32,233        28,599
  Deferred tax liabilities, net    10,113         10,113        6,044
  Deferred income                  59,396         76,152        50,165
  Deferred business acquisition    119,302        105,772       32,736
  obligations
  Warehouse facility               137,445        144,257       -
  Other                            101,637        109,909       90,458
               Total current       1,279,228      1,661,971     993,573
               liabilities
Noncurrent liabilities:
  Credit facilities                470,000        169,000       632,000
  Long-term senior notes           275,000        275,000       -
  Deferred tax liabilities, net    3,106          3,106         7,646
  Deferred compensation            82,936         75,320        62,309
  Pension liabilities              2,712          5,281         17,025
  Deferred business acquisition    100,847        107,661       276,226
  obligations
  Minority shareholder redemption  19,707         19,489        18,542
  liability
  Other                            71,201         75,415        66,888
               Total liabilities   2,304,737      2,392,243     2,074,209
Company shareholders' equity:
  Common stock, $.01 par value
  per share, 100,000,000 shares
  authorized;
  44,084,721 44,054,042 and
  43,624,291 shares issued and
  outstanding as of
  March 31, 2013, December 31,
  2012 and March 31, 2012,         441            441           436
  respectively
  Additional paid-in capital       939,058        932,255       915,352
  Retained earnings                1,030,284      1,017,128     841,321
  Shares held in trust             (7,558)        (7,587)       (7,153)
  Accumulated other comprehensive  (39,679)       8,946         1,917
  (loss) income
               Total Company
               shareholders'       1,922,546      1,951,183     1,751,873
               equity
  Noncontrolling interest          7,964          8,073         2,845
               Total equity        1,930,510      1,959,256     1,754,718
               Total liabilities   $              $             $        
               and equity           4,235,247      4,351,499     3,828,927
Please reference attached financial statement
notes.

 

JONES LANG LASALLE INCORPORATED
Summarized Consolidated Statements of Cash Flows
For the Three Months Ended March 31, 2013 and 2012
(in thousands)
(Unaudited)
                                     Three Months Ended March 31,
                                     2013                  2012
Cash used in operating activities    $         (301,456)   $         (196,122)
Cash used in investing activities    (20,777)              (16,149)
Cash provided by financing           303,544               129,663
activities
        Net decrease in cash and     $           (18,689)  (82,608)
cash equivalents
Cash and cash equivalents, beginning 152,159               184,454
of period
Cash and cash equivalents, end of    $           133,470   $          101,846
period
 

Please reference attached financial
statement notes.

 

JONES LANG LASALLE INCORPORATED
Financial Statement Notes

1.       Consistent with U.S. GAAP ("GAAP"), gross contract vendor and
subcontractor costs ("gross contract costs") which are managed on certain
client assignments in the Property & Facility Management and Project &
Development Services business lines are presented on a gross basis in both
revenue and operating expenses.  Gross contract costs are excluded from
revenue and operating expenses in determining "fee revenue" and "fee-based
operating expenses", respectively.  Excluding these costs from revenue and
operating expenses more accurately reflects how the firm manages its expense
base and its operating margins.  Adjusted operating income excludes the impact
of restructuring and acquisition charges and intangible amortization related
to the King Sturge acquisition.  "Adjusted operating income margin" is
calculated by dividing adjusted operating income by fee revenue.  Below are
reconciliations of revenue and operating expenses to fee revenue and fee-based
operating expenses, as well as adjusted operating income margin calculations,
for the three months ended March 31, 2013, and 2012.

 

                                       Three Months Ended
                                       March 31,
($ in millions)                         2013        2012
Revenue                                 $  856.0    $  813.3
Gross contract costs                    (75.5)      (68.4)
Fee revenue                             $  780.5    $  744.9
Operating expenses                      $  835.9    $  798.7
Gross contract costs                    (75.5)      (68.4)
Fee-based operating expenses            $  760.4    $  730.3
Operating income                        $    20.1   $    14.6
Add:
Restructuring and acquisition charges   3.2         9.0
King Sturge intangible amortization     0.6         2.1
Adjusted operating income               $     23.9  $   25.7
Adjusted operating income margin        3.1%        3.4%

 

2.       Charges excluded from GAAP net income attributable to common
shareholders to arrive at adjusted net income for the three months ended March
31, 2013, and March 31, 2012, are restructuring and acquisition charges and
intangible amortization related to the recent King Sturge acquisition. Below
are reconciliations of GAAP net income attributable to common shareholders to
adjusted net income and calculations of earnings per share ("EPS") for each
net income total:

 

                                                     Three Months Ended
                                                     March 31,
($ in millions, except per share data)               2013        2012
GAAP net income attributable to common shareholders  $   13.2    $   14.0
Shares (in 000s)                                     45,055      44,685
GAAP earnings per share                              $   0.29    $   0.31
GAAP net income attributable to common shareholders  $   13.2    $   14.0
Restructuring and acquisition charges, net           2.4         6.7
Intangible amortization, net                         0.4         1.6
Adjusted net income                                  $   16.0    $   22.3
Shares (in 000s)                                     45,055      44,685
Adjusted earnings per share                          $     0.36  $     0.50

               

3.       Adjusted EBITDA represents earnings before interest expense, net of
interest income, income taxes, depreciation and amortization, adjusted for
restructuring and acquisition charges. Although adjusted EBITDA and EBITDA are
non-GAAP financial measures, they are used extensively by management and are
useful to investors and lenders as metrics for evaluating operating
performance and liquidity. EBITDA is used in the calculations of certain
covenants related to the firm's revolving credit facility. However, adjusted
EBITDA and EBITDA should not be considered as an alternative to net income
determined in accordance with GAAP. Because adjusted EBITDA and EBITDA are not
calculated under GAAP, the firm's adjusted EBITDA and EBITDA may not be
comparable to similarly titled measures used by other companies.

Below is a reconciliation of net income to EBITDA and adjusted EBITDA (in
thousands):

                                                Three Months Ended
                                                March 31,
                                                2013      2012
Net income attributable to common shareholders  $ 13,156  $ 14,024
Add:
Interest expense, net of interest income        7,923     7,426
Provision for income taxes                      4,397     4,824
Depreciation and amortization                   19,079    19,659
EBITDA                                          $ 44,555  $ 45,933
Add:
Restructuring and acquisition charges           3,168     8,952
Adjusted EBITDA                                 $ 47,723  $ 54,885

 

4.       Restructuring and acquisition charges are excluded from segment
operating results, although they are included for consolidated reporting.  For
purposes of segment operating results, the allocation of restructuring charges
to the segments has been determined not to be meaningful to investors, so the
performance of segment results has been evaluated without allocation of these
charges.

5.       Intangible amortization from the second-quarter 2011 King Sturge
acquisition is included in depreciation and amortization in the firm's
consolidated results, as well as in EMEA's segment results, but has been
excluded from adjusted operating income and adjusted net income.

6.       Each geographic region offers the firm's full range of Real Estate
Services businesses consisting primarily of tenant representation and agency
leasing; capital markets; property management and facilities management;
project and development services; and advisory, consulting and valuations
services.  The Investment Management segment provides investment management
services to institutional investors and high-net-worth individuals.

7.       The consolidated statements of cash flows are presented in summarized
form. For complete consolidated statements of cash flows, please refer to the
firm's Quarterly Report on Form 10-Q for the quarter ended March 31, 2013, to
be filed with the Securities and Exchange Commission shortly.

8.       EMEA refers to Europe, Middle East and Africa.  MENA refers to Middle
East and North Africa.  Greater China includes China, Hong Kong, Macau and
Taiwan.  Southeast Asia refers to Singapore, Indonesia, Philippines, Thailand
and Vietnam.

9.       Certain prior year amounts have been reclassified to conform to the
current presentation.

SOURCE Jones Lang LaSalle Incorporated

Website: http://www.jll.com
Contact: Lauralee Martin, Chief Executive Officer, Americas and Global Chief
Financial Officer, +1 312 228 2073
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