Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - JONES LANG LASALLE INC | d8k.htm |
| EX-99.2 - SUPPLEMENTAL INFORMATION TO SECOND QUARTER 2010 EARNINGS CALL - JONES LANG LASALLE INC | dex992.htm |
EXHIBIT 99.1
|
|
News Release |
| Contact: |
Lauralee Martin | |||||||||
| Title: |
Chief Operating and Financial Officer | |||||||||
| Phone: |
+1 312 228 2073 |
Jones Lang LaSalle Reports Second-Quarter 2010 Net Income of $32 Million
Revenue of $680 million; earnings per share of $0.72
CHICAGO, July 27, 2010 – Jones Lang LaSalle Incorporated (NYSE: JLL), the leading integrated financial and professional services firm specializing in real estate, today reported net income of $32 million on a U.S. GAAP basis, or $0.72 per share, for the quarter ended June 30, 2010. This compares with a net loss of $14 million on a U.S. GAAP basis, or $0.40 per share, for the quarter ended June 30, 2009. Adjusting for Restructuring and certain non-cash co-investment charges in the second quarter of 2010, net income would have been $37 million, or $0.83 per share, compared with adjusted net income of $11 million, or $0.30 per share, in 2009. The firm’s adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”) was $78 million for the second quarter of 2010 compared with adjusted EBITDA of $49 million for the same period in 2009. Revenue for the second quarter of 2010 was $680 million, compared with $576 million in the second quarter of 2009, an increase of 18 percent in U.S. dollars and in local currency.
On a year-to-date basis net income was $32 million, or $0.73 per share, compared with a net loss of $76 million, or $2.15 per share, for the first half of 2009. Adjusted EBITDA on a year-to-date basis was $115 million compared with adjusted EBITDA of $60 million in 2009. Revenue for the first six months of 2010 was $1.3 billion, compared with $1.1 billion in 2009, an increase of 18 percent, 15 percent in local currency.
Second-Quarter 2010 Highlights:
| • | Revenue up 18 percent in local currency compared with the second quarter of 2009 |
| • | Revenue growth in Leasing and Capital Markets across all regions |
| • | Continued annuity revenue growth; Property and Facility Management revenue up 15 percent in local currency |
| • | Solid operating income improvement in all segments |
Jones Lang LaSalle Reports Second-Quarter 2010 Net Income – Page 2
Results included $4 million of Restructuring charges in the second quarter of 2010, compared with $15 million in 2009. Second-quarter results also included $2 million of non-cash co-investment impairment charges, compared with $15 million in 2009. Restructuring charges are excluded from segment operating results although they are included for consolidated reporting. Non-cash co-investment impairments are included in Equity losses at the consolidated and segment reporting levels.
On a year-to-date basis, results included $5 million of Restructuring charges, compared with $32 million in 2009, and $9 million of co-investment impairment charges compared with $44 million in 2009.
“We are pleased with our second-quarter results, which showed a solid performance based broadly across our geographies and service lines,” said Colin Dyer, Chief Executive Officer of Jones Lang LaSalle. “Business prospects for the year remain good, and we are moving forward with confidence while watching market and economic dynamics. Our competitive position is strong in real estate markets, which continue their cyclical recovery.”
Business Line Revenue Comparison (in millions, “LC” = local currency)
| Three Months Ended June 30, |
% Change In LC |
Six Months Ended June 30, |
% Change In LC |
|||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||||
| Investor and Occupier Services |
||||||||||||||||||
| Leasing |
$ | 234.6 | $ | 181.4 | 30 | % | $ | 405.0 | $ | 318.3 | 26 | % | ||||||
| Capital Markets & Hotels |
63.4 | 38.6 | 65 | % | 115.7 | 66.9 | 67 | % | ||||||||||
| Property & Facility Management |
168.1 | 142.7 | 15 | % | 328.7 | 277.2 | 13 | % | ||||||||||
| Project & Development Services |
80.8 | 76.5 | 7 | % | 149.1 | 147.5 | 0 | % | ||||||||||
| Advisory, Consulting and Other |
74.0 | 73.3 | 2 | % | 137.7 | 130.6 | 4 | % | ||||||||||
| Total IOS revenue |
620.9 | 512.5 | 21 | % | 1,136.2 | 940.5 | 18 | % | ||||||||||
| LaSalle Investment Management |
||||||||||||||||||
| Advisory fees |
$ | 56.0 | $ | 59.0 | (6 | %) | $ | 114.4 | $ | 118.9 | (7 | %) | ||||||
| Transaction and Incentive fees |
3.4 | 4.6 | (28 | %) | 10.4 | 11.0 | (12 | %) | ||||||||||
| Total Investment Management |
$ | 59.4 | $ | 63.6 | (7 | %) | $ | 124.8 | $ | 129.9 | (7 | %) | ||||||
| Total Firm Revenue |
$ | 680.3 | $ | 576.1 | 18 | % | $ | 1,261.0 | $ | 1,070.4 | 15 | % | ||||||
Operating expenses excluding Restructuring charges were $619 million for the second quarter, compared with $543 million in 2009. On a local currency basis, operating expenses excluding Restructuring charges increased 13 percent, primarily as a result of increased incentive compensation related to transactional revenue and costs associated with winning new business. While operating expenses increased, total compensation as a percentage of firm revenue for the second quarter was 64.4 percent, compared with 66.2 percent in the second quarter of last year.
Year-to-date operating expenses excluding Restructuring charges were $1.2 billion, an increase of 10 percent in local currency compared with the first half of 2009. Total compensation as a percent of firm revenue on a year-to-date basis was 65.5 percent in 2010, compared with 67.6 percent for the first half of 2009.
Jones Lang LaSalle Reports Second-Quarter 2010 Net Income – Page 3
Adjusted operating income margin improved to 9.0 percent in the second quarter, compared with a 5.7 percent margin in the same period of 2009. Year-to-date adjusted operating income margin through the first half of the year was 6.4 percent, reflecting the seasonally low-margin first-quarter period.
Balance Sheet
The firm’s outstanding debt on its long-term credit facilities was $268 million at June 30, 2010, compared with $398 million at June 30, 2009. Total net debt, including deferred business acquisition obligations, was $648 million, a $134 million decrease from June 30, 2009. The firm anticipates making the first deferred payment related to the Staubach acquisition for $78 million in the third quarter of 2010.
Business Segment Second-Quarter and Year-to-Date Performance Highlights
Americas Investor and Occupier Services
Second-quarter revenue in the Americas region was $296 million, an increase of 19 percent, 18 percent in local currency, over the prior year, driven by increased transactional activities, both in Leasing, which increased 25 percent year over year, and Capital Markets and Hotels.
| Three Months Ended June 30, |
% Change in LC |
Six Months Ended June 30, |
% Change in LC |
||||||||||||||||
| Americas (in millions) | 2010 | 2009 | 2010 | 2009 | |||||||||||||||
| Leasing |
$ | 151.4 | $ | 121.4 | 25 | % | $ | 257.6 | $ | 211.1 | 22 | % | |||||||
| Capital Markets & Hotels |
14.3 | 6.0 | 138 | % | 23.8 | 13.6 | 73 | % | |||||||||||
| Property & Facility Management |
62.0 | 51.0 | 21 | % | 120.2 | 94.6 | 26 | % | |||||||||||
| Project & Development Services |
38.5 | 40.8 | (6 | %) | 70.1 | 79.4 | (12 | %) | |||||||||||
| Advisory, Consulting and Other |
29.3 | 29.2 | 0 | % | 52.0 | 50.7 | 2 | % | |||||||||||
| Operating revenue |
$ | 295.5 | $ | 248.4 | 18 | % | $ | 523.7 | $ | 449.4 | 16 | % | |||||||
| Equity earnings (losses) |
0.0 | 0.2 | n/m | 0.2 | (1.2 | ) | n/m | ||||||||||||
| Total segment revenue |
$ | 295.5 | $ | 248.6 | 18 | % | $ | 523.9 | $ | 448.2 | 16 | % | |||||||
n/m – not meaningful
Operating expenses were $263 million in the second quarter, 14 percent higher than a year ago, driven by higher incentive compensation expense related to increased transaction revenue as well as the cost of serving more outsourcing clients. Year-to-date operating expenses were $482 million, compared with $434 million for the same period in 2009.
– more –
Jones Lang LaSalle Reports Second-Quarter 2010 Net Income – Page 4
The region’s EBITDA for the second quarter of 2010 was $41 million, compared with $31 million for the same period last year. Year-to-date EBITDA for 2010 was $59 million compared with $43 million for the first six months of 2009.
EMEA Investor and Occupier Services
EMEA’s second-quarter revenue was $171 million in 2010 compared with $143 million in 2009, an increase of 20 percent, 26 percent in local currency. The most significant revenue improvements were made in France and England, up 48 percent and 40 percent, respectively, in local currency compared with the second quarter of 2009. Year-to-date revenue in the region was $322 million in 2010 compared with $264 million in 2009, an increase of 22 percent in USD and in local currency.
| Three Months Ended June 30, |
% Change in LC |
Six Months Ended June 30, |
% Change in LC |
|||||||||||||||||
| EMEA (in millions) | 2010 | 2009 | 2010 | 2009 | ||||||||||||||||
| Leasing |
$ | 46.8 | $ | 36.5 | 36 | % | $ | 85.5 | $ | 66.2 | 30 | % | ||||||||
| Capital Markets & Hotels |
32.0 | 22.7 | 50 | % | 58.2 | 38.4 | 52 | % | ||||||||||||
| Property & Facility Management |
35.2 | 28.8 | 27 | % | 69.7 | 58.7 | 16 | % | ||||||||||||
| Project & Development Services |
27.6 | 26.1 | 13 | % | 53.6 | 47.5 | 13 | % | ||||||||||||
| Advisory, Consulting and Other |
29.1 | 29.4 | 5 | % | 55.2 | 53.8 | 3 | % | ||||||||||||
| Operating revenue |
$ | 170.7 | $ | 143.5 | 26 | % | $ | 322.2 | $ | 264.6 | 22 | % | ||||||||
| Equity earnings (losses) |
0.0 | (0.6 | ) | n/m | 0.0 | (1.0 | ) | n/m | ||||||||||||
| Total segment revenue |
$ | 170.7 | $ | 142.9 | 26 | % | $ | 322.2 | $ | 263.6 | 22 | % | ||||||||
n/m – not meaningful
Operating expenses were $165 million in the second quarter, an increase of 15 percent from the prior year, 21 percent in local currency, primarily due to increased variable compensation expense related to improved year-over-year performance. Year-to-date operating expenses were $326 million, an increase of 14 percent, 13 percent in local currency.
The region’s EBITDA for the second quarter of 2010 was $10 million, compared with $4 million for the same period last year. Year-to-date EBITDA for 2010 was $5 million compared with an EBITDA loss of $12 million for the first six months of 2009.
Asia Pacific Investor and Occupier Services
Revenue in the Asia Pacific region was $155 million for the second quarter of 2010, compared with $119 million for the same period in 2009, an increase of 30 percent, 21 percent in local currency. The year-over-year increase was driven by transactional revenue improvement compared with a year ago. Year-to-date revenue in the region was $290 million in 2010, an increase of 30 percent compared with the same period in 2009, 18 percent in local currency.
Jones Lang LaSalle Reports Second-Quarter 2010 Net Income – Page 5
| Three Months Ended June 30, |
% Change in LC |
Six Months Ended June 30, |
% Change in LC |
|||||||||||||||||
| Asia Pacific (in millions) | 2010 | 2009 | 2010 | 2009 | ||||||||||||||||
| Leasing |
$ | 36.4 | $ | 23.5 | 46 | % | $ | 61.9 | $ | 41.0 | 40 | % | ||||||||
| Capital Markets & Hotels |
17.1 | 9.9 | 56 | % | 33.7 | 14.9 | 96 | % | ||||||||||||
| Property & Facility Management |
70.9 | 62.9 | 5 | % | 138.8 | 123.9 | 2 | % | ||||||||||||
| Project & Development Services |
14.7 | 9.6 | 43 | % | 25.4 | 20.6 | 14 | % | ||||||||||||
| Advisory, Consulting and Other |
15.6 | 14.8 | (1 | %) | 30.5 | 26.1 | 8 | % | ||||||||||||
| Operating revenue |
$ | 154.7 | $ | 120.7 | 20 | % | $ | 290.3 | $ | 226.5 | 17 | % | ||||||||
| Equity earnings (losses) |
0.0 | (1.4 | ) | n/m | 0.0 | (2.4 | ) | n/m | ||||||||||||
| Total segment revenue |
$ | 154.7 | $ | 119.3 | 21 | % | $ | 290.3 | $ | 224.1 | 18 | % | ||||||||
n/m – not meaningful
Operating expenses for the region were $144 million for the quarter, compared with $117 million in 2009, an increase of 15 percent year over year in local currency. Operating expenses were $274 million for the first half of 2010, compared with $225 million in 2009, an increase of 11 percent in local currency.
The region’s EBITDA for the second quarter of 2010 was $14 million, compared with $6 million for the same period last year. Year-to-date EBITDA for 2010 was $23 million compared with $5 million for the first six months of 2009.
LaSalle Investment Management
LaSalle Investment Management’s second-quarter Advisory fees were $56 million, down 5 percent, 6 percent in local currency. Year-to-date Advisory fees were $114 million, compared with $119 million through the first six months of 2009. The business recognized Incentive fees of $3 million in the second quarter of 2010 and $10 million for the first half of 2010. Asset purchases, a key driver of Transaction fees, were limited by the low levels of attractive assets available.
| LaSalle Investment Management | Three Months Ended June 30, |
% Change in LC |
Six Months Ended June 30, |
% Change in LC |
||||||||||||||||||
| (in millions) | 2010 | 2009 | 2010 | 2009 | ||||||||||||||||||
| Advisory fees |
$ | 56.0 | $ | 59.0 | (6 | %) | $ | 114.4 | $ | 118.9 | (7 | %) | ||||||||||
| Transaction and Incentive fees |
3.4 | 4.6 | (28 | %) | 10.4 | 11.0 | (12 | %) | ||||||||||||||
| Operating revenue |
$ | 59.4 | $ | 63.6 | (7 | %) | $ | 124.8 | $ | 129.9 | (7 | %) | ||||||||||
| Equity losses |
(2.8 | ) | (17.5 | ) | n/m | (9.1 | ) | (46.7 | ) | n/m | ||||||||||||
| Total segment revenue |
$ | 56.6 | $ | 46.1 | 22 | % | $ | 115.7 | $ | 83.2 | 34 | % | ||||||||||
n/m – not meaningful
– more –
Jones Lang LaSalle Reports Second-Quarter 2010 Net Income – Page 6
During the quarter, LaSalle Investment Management secured an additional portfolio assignment of $700 million from an existing separate account client and raised nearly $200 million of net equity for its funds and public securities business. New commitments and additional portfolio takeovers reflect LaSalle’s strong performance track record and reputation in the market. At the end of the second quarter assets under management were $38.3 billion.
Summary
The firm has demonstrated its competitive strength coming out of the economic downturn and is pleased with its performance through the first half of the year. It continues to focus on controlling costs to enhance operating margins, with increased variable compensation reflecting improved business performance. The firm protected market positions and key transaction staffing through the recession, which has added growth opportunities, and it has expanded its outsourcing capabilities into local and global markets.
– more –
Jones Lang LaSalle Reports Second-Quarter 2010 Net Income – Page 7
Statements in this press release regarding, among other things, future financial results and performance, achievements, plans and objectives, 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, 2009, and in the Quarterly Report on Form 10-Q for the quarter ended March 31, 2010, and in other reports filed with the Securities and Exchange Commission. 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.
About Jones Lang LaSalle
Jones Lang LaSalle (NYSE: JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2009 global revenue of $2.5 billion, Jones Lang LaSalle serves clients in 60 countries from 750 locations worldwide, including 180 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.6 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with approximately $38 billion of assets under management. For further information, please visit the company’s Web site, www.joneslanglasalle.com.
200 East Randolph Drive Chicago Illinois 60601 | 22 Hanover Square London W1A 2BN | 9 Raffles Place #39–00 Republic Plaza Singapore 048619
– more –
Jones Lang LaSalle Reports Second-Quarter 2010 Net Income – Page 8
Conference Call
The firm will conduct a conference call for shareholders, analysts and investment professionals on Wednesday, July 28 at 9:00 a.m. EDT.
To participate in the teleconference, please dial into one of the following phone numbers five to 10 minutes before the start time:
| • U.S. callers: |
+1 877 809 9540 | |
| • International callers: |
+1 706 679 7364 | |
| • Pass code: |
86686985 |
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=70597 and follow instructions
3. Download free Windows Media Player software: (link located under registration form)
4. If you experience problems listening, send an e-mail to prnwebcast@multivu.com
Supplemental Information
Supplemental information regarding the second quarter 2010 earnings call has been posted to the Investor Relations section of the company’s Web site: www.joneslanglasalle.com.
Conference Call Replay
Available: 12:00 p.m. EDT Wednesday, July 28 through 11:59 p.m. EDT Wednesday, August 4 at the following numbers:
| • U.S. callers: |
+1 800 642 1687 | |
| • International callers: |
+1 706 645 9291 | |
| • Pass code: |
86686985 |
Web Audio Replay
Audio replay will be available for download or stream. This information and link is also available on the company’s Web site: www.joneslanglasalle.com.
If you have any questions, call Yvonne Peterson of Jones Lang LaSalle’s Investor Relations department at +1 312 228 2919.
###
JONES LANG LASALLE INCORPORATED
Consolidated Statements of Operations
For the Three and Six Months Ended June 30, 2010 and 2009
(in thousands, except share data)
(Unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Revenue |
$ | 680,319 | $ | 576,138 | $ | 1,260,981 | $ | 1,070,350 | ||||||||
| Operating expenses: |
||||||||||||||||
| Compensation and benefits |
438,408 | 381,376 | 825,789 | 723,931 | ||||||||||||
| Operating, administrative and other |
163,042 | 140,653 | 319,495 | 278,276 | ||||||||||||
| Depreciation and amortization |
17,532 | 21,367 | 35,246 | 45,887 | ||||||||||||
| Restructuring charges |
3,996 | 15,386 | 5,116 | 32,428 | ||||||||||||
| Total operating expenses |
622,978 | 558,782 | 1,185,646 | 1,080,522 | ||||||||||||
| Operating income (loss) |
57,341 | 17,356 | 75,335 | (10,172 | ) | |||||||||||
| Interest expense, net of interest income |
12,918 | 14,528 | 24,248 | 27,286 | ||||||||||||
| Equity losses from unconsolidated ventures |
(2,796 | ) | (19,248 | ) | (8,924 | ) | (51,271 | ) | ||||||||
| Income (loss) before income taxes and noncontrolling interest |
41,627 | (16,420 | ) | 42,163 | (88,729 | ) | ||||||||||
| Provision (benefit) for income taxes |
9,574 | (2,463 | ) | 9,698 | (13,310 | ) | ||||||||||
| Net income (loss) |
32,053 | (13,957 | ) | 32,465 | (75,419 | ) | ||||||||||
| Net income attributable to noncontrolling interest |
78 | 190 | 246 | 202 | ||||||||||||
| Net income (loss) attributable to the Company |
$ | 31,975 | $ | (14,147 | ) | $ | 32,219 | $ | (75,621 | ) | ||||||
| Net income (loss) attributable to common shareholders |
$ | 31,757 | $ | (14,433 | ) | $ | 32,001 | $ | (75,907 | ) | ||||||
| Basic earnings (loss) per common share |
$ | 0.76 | $ | (0.40 | ) | $ | 0.76 | $ | (2.15 | ) | ||||||
| Basic weighted average shares outstanding |
42,037,112 | 35,835,788 | 41,975,448 | 35,231,252 | ||||||||||||
| Diluted earnings (loss) per common share |
$ | 0.72 | $ | (0.40 | ) | $ | 0.73 | $ | (2.15 | ) | ||||||
| Diluted weighted average shares outstanding |
44,249,698 | 35,835,788 | 44,085,326 | 35,231,252 | ||||||||||||
| EBITDA |
$ | 71,781 | $ | 18,999 | $ | 101,193 | $ | (16,044 | ) | |||||||
Please reference attached financial statement notes.
JONES LANG LASALLE INCORPORATED
Segment Operating Results
For the Three and Six Months Ended June 30, 2010 and 2009
(in thousands)
(Unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| INVESTOR & OCCUPIER SERVICES |
||||||||||||||||
| AMERICAS |
||||||||||||||||
| Revenue: |
||||||||||||||||
| Operating revenue |
$ | 295,485 | $ | 248,354 | $ | 523,683 | $ | 449,389 | ||||||||
| Equity income (losses) |
36 | 233 | 241 | (1,211 | ) | |||||||||||
| 295,521 | 248,587 | 523,924 | 448,178 | |||||||||||||
| Operating expenses: |
||||||||||||||||
| Compensation, operating and administrative expenses |
254,217 | 217,416 | 464,666 | 405,575 | ||||||||||||
| Depreciation and amortization |
8,861 | 12,523 | 17,718 | 28,439 | ||||||||||||
| 263,078 | 229,939 | 482,384 | 434,014 | |||||||||||||
| Operating income |
$ | 32,443 | $ | 18,648 | $ | 41,540 | $ | 14,164 | ||||||||
| EBITDA |
$ | 41,304 | $ | 31,171 | $ | 59,258 | $ | 42,603 | ||||||||
| EMEA |
||||||||||||||||
| Revenue: |
||||||||||||||||
| Operating revenue |
$ | 170,762 | $ | 143,451 | $ | 322,167 | $ | 264,590 | ||||||||
| Equity losses |
(15 | ) | (580 | ) | (33 | ) | (959 | ) | ||||||||
| 170,747 | 142,871 | 322,134 | 263,631 | |||||||||||||
| Operating expenses: |
||||||||||||||||
| Compensation, operating and administrative expenses |
160,554 | 138,374 | 316,814 | 275,316 | ||||||||||||
| Depreciation and amortization |
4,308 | 5,234 | 9,027 | 10,376 | ||||||||||||
| 164,862 | 143,608 | 325,841 | 285,692 | |||||||||||||
| Operating income (loss) |
$ | 5,885 | $ | (737 | ) | $ | (3,707 | ) | $ | (22,061 | ) | |||||
| EBITDA |
$ | 10,193 | $ | 4,497 | $ | 5,320 | $ | (11,685 | ) | |||||||
| ASIA PACIFIC |
||||||||||||||||
| Revenue: |
||||||||||||||||
| Operating revenue |
$ | 154,704 | $ | 120,671 | $ | 290,349 | $ | 226,473 | ||||||||
| Equity losses |
— | (1,401 | ) | — | (2,372 | ) | ||||||||||
| 154,704 | 119,270 | 290,349 | 224,101 | |||||||||||||
| Operating expenses: |
||||||||||||||||
| Compensation, operating and administrative expenses |
140,494 | 113,535 | 267,592 | 219,053 | ||||||||||||
| Depreciation and amortization |
3,094 | 3,072 | 6,333 | 5,993 | ||||||||||||
| 143,588 | 116,607 | 273,925 | 225,046 | |||||||||||||
| Operating income (loss) |
$ | 11,116 | $ | 2,663 | $ | 16,424 | $ | (945 | ) | |||||||
| EBITDA |
$ | 14,210 | $ | 5,735 | $ | 22,757 | $ | 5,048 | ||||||||
| LASALLE INVESTMENT MANAGEMENT |
||||||||||||||||
| Revenue: |
||||||||||||||||
| Operating revenue |
$ | 59,368 | $ | 63,662 | $ | 124,782 | $ | 129,898 | ||||||||
| Equity losses |
(2,817 | ) | (17,500 | ) | (9,132 | ) | (46,729 | ) | ||||||||
| 56,551 | 46,162 | 115,650 | 83,169 | |||||||||||||
| Operating expenses: |
||||||||||||||||
| Compensation, operating and administrative expenses |
46,184 | 52,704 | 96,211 | 102,263 | ||||||||||||
| Depreciation and amortization |
1,270 | 538 | 2,169 | 1,079 | ||||||||||||
| 47,454 | 53,242 | 98,380 | 103,342 | |||||||||||||
| Operating income (loss) |
$ | 9,097 | $ | (7,080 | ) | $ | 17,270 | $ | (20,173 | ) | ||||||
| EBITDA |
$ | 10,367 | $ | (6,542 | ) | $ | 19,439 | $ | (19,094 | ) | ||||||
| Total segment revenue |
677,523 | 556,890 | 1,252,057 | 1,019,079 | ||||||||||||
| Reclassification of equity losses |
(2,796 | ) | (19,248 | ) | (8,924 | ) | (51,271 | ) | ||||||||
| Total revenue |
$ | 680,319 | $ | 576,138 | $ | 1,260,981 | $ | 1,070,350 | ||||||||
| Total operating expenses before restructuring charges |
618,982 | 543,396 | 1,180,530 | 1,048,094 | ||||||||||||
| Operating income before restructuring charges |
$ | 61,337 | $ | 32,742 | $ | 80,451 | $ | 22,256 | ||||||||
Please reference attached financial statement notes.
JONES LANG LASALLE INCORPORATED
Consolidated Balance Sheets
June 30, 2010, December 31, 2009 and June 30, 2009
(in thousands)
| June 30, 2010 (Unaudited) |
December 31, 2009 |
June 30, 2009 (Unaudited) |
||||||||||
| ASSETS |
||||||||||||
| Current assets: |
||||||||||||
| Cash and cash equivalents |
$ | 54,994 | $ | 69,263 | $ | 44,324 | ||||||
| Trade receivables, net of allowances |
621,523 | 669,993 | 592,782 | |||||||||
| Notes and other receivables |
80,035 | 73,984 | 84,147 | |||||||||
| Prepaid expenses |
41,729 | 35,689 | 37,700 | |||||||||
| Deferred tax assets |
79,985 | 82,793 | 124,246 | |||||||||
| Other |
16,443 | 8,196 | 6,824 | |||||||||
| Total current assets |
894,709 | 939,918 | 890,023 | |||||||||
| Property and equipment, net of accumulated depreciation |
192,498 | 213,708 | 221,787 | |||||||||
| Goodwill, with indefinite useful lives |
1,399,668 | 1,441,951 | 1,482,067 | |||||||||
| Identified intangibles, with finite useful lives, net of accumulated amortization |
30,856 | 36,791 | 42,897 | |||||||||
| Investments in real estate ventures |
162,106 | 167,310 | 152,458 | |||||||||
| Long-term receivables |
46,376 | 52,941 | 51,606 | |||||||||
| Deferred tax assets |
139,283 | 139,406 | 72,256 | |||||||||
| Other |
101,642 | 104,908 | 67,703 | |||||||||
| Total assets |
$ | 2,967,138 | $ | 3,096,933 | $ | 2,980,797 | ||||||
| LIABILITIES AND EQUITY |
||||||||||||
| Current liabilities: |
||||||||||||
| Accounts payable and accrued liabilities |
$ | 300,903 | $ | 347,650 | $ | 309,557 | ||||||
| Accrued compensation |
302,341 | 479,628 | 266,717 | |||||||||
| Short-term borrowings |
63,737 | 23,399 | 40,212 | |||||||||
| Deferred tax liabilities |
1,164 | 1,164 | 3,546 | |||||||||
| Deferred income |
36,775 | 38,575 | 30,121 | |||||||||
| Deferred business acquisition obligations |
92,393 | 106,330 | 26,436 | |||||||||
| Other |
105,069 | 98,349 | 86,206 | |||||||||
| Total current liabilities |
902,382 | 1,095,095 | 762,795 | |||||||||
| Noncurrent liabilities: |
||||||||||||
| Credit facilities |
268,000 | 175,000 | 398,072 | |||||||||
| Deferred tax liabilities |
7,797 | 3,210 | 4,349 | |||||||||
| Deferred compensation |
21,013 | 27,039 | 32,061 | |||||||||
| Pension liabilities |
6,579 | 8,210 | 4,244 | |||||||||
| Deferred business acquisition obligations |
279,334 | 287,259 | 361,948 | |||||||||
| Minority shareholder redemption liability |
33,273 | 32,475 | 44,251 | |||||||||
| Other |
72,448 | 86,031 | 78,656 | |||||||||
| Total liabilities |
1,590,826 | 1,714,319 | 1,686,376 | |||||||||
| Company shareholders’ equity: |
||||||||||||
| Common stock, $.01 par value per share, 100,000,000 shares authorized; |
||||||||||||
| 42,059,599, 41,843,947 and 41,289,913 shares issued and outstanding as of |
||||||||||||
| June 30, 2010, December 31, 2009, and June 30, 2009, respectively |
421 | 418 | 413 | |||||||||
| Additional paid-in capital |
870,368 | 854,227 | 845,210 | |||||||||
| Retained earnings |
559,188 | 531,456 | 463,883 | |||||||||
| Shares held in trust |
(5,003 | ) | (5,196 | ) | (3,513 | ) | ||||||
| Accumulated other comprehensive loss |
(51,532 | ) | (1,976 | ) | (15,330 | ) | ||||||
| Total Company shareholders’ equity |
1,373,442 | 1,378,929 | 1,290,663 | |||||||||
| Noncontrolling interest |
2,870 | 3,685 | 3,758 | |||||||||
| Total equity |
1,376,312 | 1,382,614 | 1,294,421 | |||||||||
| Total liabilities and equity |
$ | 2,967,138 | $ | 3,096,933 | $ | 2,980,797 | ||||||
Please reference attached financial statement notes.
JONES LANG LASALLE INCORPORATED
Summarized Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 2010 and 2009
(in thousands)
(Unaudited)
| Six Months Ended June 30, | ||||||||
| 2010 | 2009 | |||||||
| Cash used in operating activities |
$ | (80,363 | ) | $ | (85,861 | ) | ||
| Cash used in investing activities |
(58,359 | ) | (49,645 | ) | ||||
| Cash provided by financing activities |
124,453 | 133,937 | ||||||
| Net decrease in cash and cash equivalents |
(14,269 | ) | (1,569 | ) | ||||
| Cash and cash equivalents, beginning of period |
69,263 | 45,893 | ||||||
| Cash and cash equivalents, end of period |
$ | 54,994 | $ | 44,324 | ||||
Please reference attached financial statement notes.
JONES LANG LASALLE INCORPORATED
Financial Statement Notes
| 1. | Charges excluded from GAAP net income (loss) to arrive at adjusted net income (loss) for the quarters and year-to-date periods ended June 30, 2010, and June 30, 2009, respectively, are primarily severance costs and non-cash co-investment charges. Below are reconciliations of GAAP net income (loss) to adjusted net income (loss) and calculations of earnings (loss) per share (“EPS”) for each net income (loss) total (in millions after tax, except per share): |
| Three Months Ended | Six Months Ended | |||||||||||||
| June 30, | June 30, | |||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||
| GAAP net income (loss) |
$ | 31.8 | $ | (14.4 | ) | $ | 32.0 | $ | (75.9 | ) | ||||
| Shares (in 000s) |
44,250 | 35,836 | 44,085 | 35,231 | ||||||||||
| GAAP earnings (loss) per share |
$ | 0.72 | $ | (0.40 | ) | $ | 0.73 | $ | (2.15 | ) | ||||
| GAAP net income (loss) |
$ | 31.8 | $ | (14.4 | ) | $ | 32.0 | $ | (75.9 | ) | ||||
| Restructuring, net of tax |
3.1 | 13.1 | 3.9 | 27.6 | ||||||||||
| Non-cash co-investment charges, net of tax |
1.7 | 12.7 | 6.7 | 37.2 | ||||||||||
| Adjusted net income (loss) |
36.6 | 11.4 | 42.6 | (11.1 | ) | |||||||||
| Shares (in 000s) |
44,250 | 37,652 | 44,085 | 35,231 | ||||||||||
| Adjusted earnings (loss) per share |
$ | 0.83 | $ | 0.30 | $ | 0.97 | $ | (0.31 | ) | |||||
Basic shares outstanding were used in the calculations of GAAP EPS for the three and six months ended June 30, 2009, and in the calculation of adjusted EPS for the six months ended June 30, 2009, as the use of dilutive shares outstanding would have caused those EPS calculations to be anti-dilutive.
| 2. | Adjusted EBITDA represents EBITDA adjusted for Restructuring and non-cash co-investment charges. EBITDA represents earnings before interest expense, net of interest income, income taxes, depreciation and amortization. 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. The firm believes that adjusted EBITDA and EBITDA are indicators of ability to service existing debt, to sustain potential future increases in debt and to satisfy capital requirements. EBITDA is also 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 alternatives either to net income (loss) or net cash provided by (used in) operating activities, both of which are 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 (loss) to EBITDA and adjusted EBITDA (in thousands):
| Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||
| Net income (loss) |
$ | 31,757 | $ | (14,433 | ) | $ | 32,001 | $ | (75,907 | ) | ||||
| Add (Deduct): |
||||||||||||||
| Interest expense, net of interest income |
12,918 | 14,528 | 24,248 | 27,286 | ||||||||||
| Provision (Benefit) for income taxes |
9,574 | (2,463 | ) | 9,698 | (13,310 | ) | ||||||||
| Depreciation and amortization |
17,532 | 21,367 | 35,246 | 45,887 | ||||||||||
| EBITDA |
$ | 71,781 | $ | 18,999 | $ | 101,193 | $ | (16,044 | ) | |||||
| Add: |
||||||||||||||
| Non-cash co-investment charges |
2,188 | 14,915 | 8,656 | 43,847 | ||||||||||
| Restructuring |
3,996 | 15,386 | 5,116 | 32,428 | ||||||||||
| Adjusted EBITDA |
$ | 77,965 | $ | 49,300 | $ | 114,965 | $ | 60,231 | ||||||
Below is a reconciliation of net cash from operating activities, the most comparable cash flow measure on the consolidated statements of cash flows, to EBITDA and adjusted EBITDA (in thousands):
| Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Net cash provided by (used in) operating activities |
$ | 65,969 | $ | (81,995 | ) | $ | (80,363 | ) | $ | (85,861 | ) | |||||
| Add: |
||||||||||||||||
| Interest expense, net of interest income |
12,918 | 14,528 | 24,248 | 27,286 | ||||||||||||
| Change in working capital and non-cash expenses |
(16,680 | ) | 88,929 | 147,610 | 55,841 | |||||||||||
| Provision (Benefit) for income taxes |
9,574 | (2,463 | ) | 9,698 | (13,310 | ) | ||||||||||
| EBITDA |
$ | 71,781 | $ | 18,999 | $ | 101,193 | $ | (16,044 | ) | |||||||
| Add: |
||||||||||||||||
| Non-cash co-investment charges |
2,188 | 14,915 | 8,656 | 43,847 | ||||||||||||
| Restructuring |
3,996 | 15,386 | 5,116 | 32,428 | ||||||||||||
| Adjusted EBITDA |
$ | 77,965 | $ | 49,300 | $ | 114,965 | $ | 60,231 | ||||||||
| 3. | For purposes of segment operating results, the allocation of restructuring charges to the segments has been determined to not be meaningful to investors, so the performance of segment results has been evaluated without allocation of these charges. |
| 4. | Each geographic region offers the firm’s full range of Investor Services, Capital Markets and Occupier Services. The Investor and Occupier Services business consists 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. |
| 5. | 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 June 30, 2010, to be filed with the Securities and Exchange Commission shortly. |
| 6. | EMEA refers to Europe, Middle East, and Africa. MENA refers to Middle East and North Africa. |
| 7. | Certain prior year amounts have been reclassified to conform to the current presentation. |