Exhibit 99.1

 

Contact:		Lauralee Martin
Title:		Chief Operating and Financial Officer
Phone:		+1 312 228 2073

Jones Lang LaSalle Reports Record Full-Year Revenue Driven by Strong Fourth Quarter

Adjusted annual net income of $166 million; adjusted EPS of $3.77

CHICAGO, February 1, 2011 – Jones Lang LaSalle Incorporated (NYSE: JLL) today reported net income of $154 million on a U.S. GAAP basis, or $3.48 per share, for the year ended December 31, 2010, compared with a net loss of $4 million, or $0.11 per share, for the year ended December 31, 2009. Adjusting for Restructuring and co-investment charges, full-year 2010 net income would have been $166 million, or $3.77 per share, compared with $70 million, or $1.75 per share, in 2009. Full-year revenue was a record high $2.9 billion, an increase of 18 percent in U.S. dollars, 17 percent in local currency, compared with 2009. The firm’s adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”) were $337 million for the year.

For the quarter ended December 31, 2010, net income was $84 million on a U.S. GAAP basis, or $1.91 per share, compared with $52 million, or $1.19 per share, for the fourth quarter ended December 31, 2009. Adjusting for Restructuring and certain non-cash co-investment charges, fourth-quarter 2010 net income would have been $86 million, or $1.94 per share, compared with fourth-quarter 2009 net income of $63 million, or $1.44 per share, on an adjusted basis. Revenue for the fourth quarter of 2010 was $956 million, a 17 percent increase from $815 million in 2009, 18 percent in local currency. Adjusted EBITDA in the fourth quarter of 2010 was $143 million.

 

 

2010 Full-Year Highlights:

 

•

Record high revenue of $2.9 billion, up 18 percent for the year

 

•

Continued transactional revenue improvement; Leasing revenue of $1.0 billion

 

•

Adjusted operating income margin improves to 9.1 percent from 6.6 percent in 2009; adjusted EBITDA margin improves to 11.5 percent

 

•

$5.0 billion of net capital raised by LaSalle Investment Management

 

 

Results for full-year 2010 included $6 million of Restructuring charges as well as $10 million of non-cash co-investment charges, compared with $47 million and $51 million in 2009, respectively.

 

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Jones Lang LaSalle Reports Full-Year and Fourth-Quarter 2010 Results – Page 2

 

Results for the fourth quarter of 2010 included $1 million of Restructuring charges and $1 million of non-cash co-investment charges. Restructuring charges are excluded from segment operating results although they are included for consolidated reporting. The non-cash charges relate primarily to impairments of the firm’s investments in real estate ventures and are included in Equity losses at the consolidated and segment reporting levels.

“Our strong fourth-quarter and full-year results were achieved with activity from all our regions as well as LaSalle Investment Management,” said Colin Dyer, CEO of Jones Lang LaSalle. “As markets continue to recover, we are working to take additional market share and maintain good growth momentum into 2011,” Dyer added.

Business Line Revenue Comparison for the periods ending December 31, 2010 and 2009:

(in millions, “LC” = local currency)

 

		Three Months Ended Dec 31,								% Change				Twelve Months Ended Dec 31,								% Change
		2010				2009				in LC				2010				2009				in LC
Real Estate Services
Leasing		$	360.0			$	290.0				25	%		$	999.9			$	783.0				27	%
Capital Markets			115.6				81.0				50	%			305.7				203.8				51	%
Property & Facility Management			216.2				198.0				7	%			716.0				627.4				11	%
Project & Development Services			99.1				90.7				11	%			337.4				311.0				9	%
Advisory, Consulting & Other			98.1				91.0				7	%			309.5				295.3				5	%
Total RES Revenue		$	889.0			$	750.7				18	%		$	2,668.5			$	2,220.5				18	%
LaSalle Investment Management
Advisory fees		$	61.4			$	62.1				(1	%)		$	237.5			$	242.2				(3	%)
Transaction and Incentive fees			5.9				2.3				126	%			19.6				18.0				2	%
Total Investment Management		$	67.3			$	64.4				3	%		$	257.1			$	260.2				(3	%)
Total Firm Revenue		$	956.3			$	815.1				18	%		$	2,925.6			$	2,480.7				17	%

Year-to-date operating expenses excluding Restructuring charges were $2.7 billion, an increase of 14 percent in local currency compared with 2009. On a full-year basis, total compensation as a percentage of firm revenue improved to 64.9 percent, from 65.5 percent in 2009, driven by better productivity across the firm. Full-year adjusted operating income margin, which excludes Restructuring charges, was 9.1 percent, up from 6.6 percent in 2009. Full-year adjusted EBITDA margin was 11.5 percent, up from 9.6 percent in 2009.

Operating expenses excluding Restructuring charges were $832 million for the fourth quarter, compared with $722 million in 2009. On a local currency basis, operating expenses excluding Restructuring charges increased 15 percent over 2009, with increases the result of business growth

 

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Jones Lang LaSalle Reports Full-Year and Fourth-Quarter 2010 Results – Page 3

 

and performance compensation. Adjusted operating income margin improved to 13.0 percent in the fourth quarter, compared with an 11.4 percent margin in the same period of 2009.

Balance Sheet

In 2010, the firm reduced its net debt position by $250 million, including a reduction in net bank debt of $155 million and a reduction in deferred acquisition obligations of $95 million. The firm’s total net debt position at December 31, 2010, was $273 million. The net debt reduction during the year was driven by strong cash flows generated from operations and modest cash outflows due to disciplined capital expenditures, effective tax management and low cash interest expense associated with reduced borrowing levels on the firm’s investment-grade balance sheet.

Business Segment Full-Year and Fourth-Quarter Performance Highlights

Americas Real Estate Services

Full-year revenue in the Americas region was nearly $1.3 billion, an increase of 22 percent over the prior year, driven by increased transactional activities both in Leasing, which increased 28 percent to $638 million, and Capital Markets and Hotels, which more than doubled to $84 million.

 

		Three Months Ended Dec 31,								% Change				Twelve Months Ended Dec 31,								% Change
Americas (in millions)		2010				2009				In LC				2010				2009				in LC
Leasing		$	228.3			$	176.2				30	%		$	637.9			$	498.2				28	%
Capital Markets & Hotels			35.1				13.7				156	%			84.1				38.3				120	%
Property & Facility Management			86.1				79.7				8	%			269.4				226.2				19	%
Project & Development Services			48.1				43.5				11	%			158.9				158.0				1	%
Advisory, Consulting and Other			30.9				31.6				(2	%)			110.9				112.0				(1	%)
Operating revenue		$	428.5			$	344.7				24	%		$	1,261.2			$	1,032.7				22	%
Equity earnings (losses)			0.0				0.0				n/m				0.3				(1.1	)			n/m
Total segment revenue		$	428.5			$	344.7				24	%		$	1,261.5			$	1,031.6				22	%
n/m – not meaningful

Year-to-date operating expenses were $1.1 billion, compared with $945 million for the same period in 2009, an 18 percent increase. Americas operating income margin improved to 11.8 percent, from 8.4 percent in 2009 on a full-year basis. Full-year EBITDA for 2010 was $184 million, a margin of 14.6 percent, compared with $134 million for 2009, a margin of 13.0 percent.

Operating expenses were $359 million in the fourth quarter, 19 percent higher than a year ago, but operating income margin improved to 16.2 percent, from 12.4 percent in the fourth quarter last year. EBITDA for the fourth quarter of 2010 was $79 million, compared with $52 million for the fourth quarter of 2009.

 

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Jones Lang LaSalle Reports Full-Year and Fourth-Quarter 2010 Results – Page 4

 

EMEA Real Estate Services

EMEA’s full-year revenue was $729 million in 2010 compared with $644 million in 2009, an increase of 13 percent, 17 percent in local currency, with the most significant contribution from Capital Markets and Hotels. Transactional activity improved in the firm’s largest European markets. Capital Markets and Hotels momentum picked up in the fourth quarter, driving revenue up 41 percent in local currency compared with the fourth quarter of 2009.

 

		Three Months Ended Dec 31,								% Change				Twelve Months Ended Dec 31,								% Change
EMEA (in millions)		2010				2009				in LC				2010				2009				in LC
Leasing		$	69.3			$	70.3				4	%		$	202.6			$	172.5				22	%
Capital Markets & Hotels			52.0				38.8				41	%			141.2				107.3				37	%
Property & Facility Management			40.7				43.9				(3	%)			142.9				135.5				8	%
Project & Development Services			32.2				34.5				0	%			115.0				108.8				11	%
Advisory, Consulting and Other			43.2				40.2				13	%			127.2				122.4				7	%
Operating revenue		$	237.4			$	227.7				10	%		$	728.9			$	646.5				17	%
Equity losses			0.0				(1.8	)			n/m				(0.1	)			(2.8	)			n/m
Total segment revenue		$	237.4			$	225.9				11	%		$	728.8			$	643.7				17	%
n/m – not meaningful

Year-to-date operating expenses were $709 million, an increase of 9 percent, 12 percent in local currency. On a full-year basis, operating income margin was 2.7 percent, compared with an operating loss of 1.5 percent in the prior year. Full-year EBITDA for 2010 was $38 million, a margin of 5.3 percent, compared with $11 million in 2009, a margin of 1.8 percent.

Operating expenses were $217 million in the fourth quarter, an increase of 4 percent from the prior year, 9 percent in local currency, primarily due to increased variable compensation expense related to improved year-over-year performance. Operating income margin in EMEA improved to 8.5 percent in the fourth quarter, from 7.2 percent in 2009. The region’s EBITDA for the fourth quarter of 2010 was $26 million, compared with $22 million for the same period last year.

Asia Pacific Real Estate Services

Revenue in the Asia Pacific region was $679 million in 2010, an increase of 26 percent compared with 2009, 17 percent in local currency. The year-over-year increase was principally driven by transactional revenue improvement across most countries in the region compared with a year ago. Fourth-quarter revenue was $223 million, compared with $178 million for the same period in 2009, an increase of 25 percent, 18 percent in local currency.

 

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Jones Lang LaSalle Reports Full-Year and Fourth-Quarter 2010 Results – Page 5

 

		Three Months Ended Dec 31,								% Change				Twelve Months Ended Dec 31,								% Change
Asia Pacific (in millions)		2010				2009				In LC				2010				2009				in LC
Leasing		$	62.4			$	43.5				36	%		$	159.4			$	112.3				34	%
Capital Markets & Hotels			28.5				28.5				(7	%)			80.4				58.2				25	%
Property & Facility Management			89.4				74.4				13	%			303.7				265.7				6	%
Project & Development Services			18.8				12.7				41	%			63.5				44.2				35	%
Advisory, Consulting and Other			24.0				19.2				20	%			71.4				60.9				11	%
Operating revenue		$	223.1			$	178.3				18	%		$	678.4			$	541.3				17	%
Equity earnings (losses)			0.1				0.0				n/m				0.1				(2.4	)			n/m
Total segment revenue		$	223.2			$	178.3				18	%		$	678.5			$	538.9				17	%
n/m – not meaningful

Operating expenses for the region were $629 million for full-year 2010, compared with $507 million in 2009, an increase of 16 percent in local currency. Full-year operating income margin was 7.3 percent, compared with 5.9 percent in 2009. EBITDA for 2010 was $62 million, a margin of 9.2 percent, compared with $44 million in 2009, a margin of 8.2 percent.

Fourth-quarter operating expenses were $198 million, compared with $153 million in 2009, an increase of 22 percent year over year in local currency. The region’s EBITDA for the fourth quarter of 2010 was $29 million, consistent with very strong EBITDA in the fourth quarter of 2009.

LaSalle Investment Management

LaSalle Investment Management’s full-year Advisory fees were $238 million, compared with $242 million in 2009, a decrease of 3 percent in local currency. Fourth-quarter Advisory fees were $61 million, down 1 percent compared with last year in both U.S. dollars and local currency. Transaction and incentive fees increased to $5.9 million in the fourth quarter versus $2.3 million in the prior year due to increased acquisition levels, bringing the year-to-date fees to $19.6 million.

 

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Jones Lang LaSalle Reports Full-Year and Fourth-Quarter 2010 Results – Page 6

 

LaSalle Investment Management		Three Months Ended Dec 31,								% Change				Twelve Months Ended Dec 31,								% Change
(in millions)		2010				2009				in LC				2010				2009				in LC
Advisory fees		$	61.4			$	62.1				(1	%)		$	237.5			$	242.2				(3	%)
Transaction and Incentive fees			5.9				2.3				126	%			19.6				18.0				2	%
Operating revenue		$	67.3			$	64.4				3	%		$	257.1			$	260.2				(3	%)
Equity losses			(0.5	)			(0.9	)			n/m				(11.7	)			(52.6	)			n/m
Total segment revenue		$	66.8			$	63.5				4	%		$	245.4			$	207.6				16	%
n/m – not meaningful

Full-year adjusted operating income margin, which excludes non-cash co-investment impairment charges, was 19.1 percent compared with 17.6 percent in 2009.

LaSalle Investment Management raised net capital of $5.0 billion during the year, making 2010 the second-best year of capital raise in LaSalle history. Investments totaled $3.2 billion for the year. At the end of the fourth quarter assets under management were $41.3 billion.

Summary

The firm had a record-setting year of revenue and a strong recovery in profit performance. It finished the year with a strong foundation for future growth and performance. The Americas expanded its market positions, EMEA returned to positive operating income, and Asia Pacific demonstrated continued annuity and transaction revenue growth. LaSalle Investment Management generated healthy margins on its advisory fees and raised significant levels of capital. Profitability improved in all operating segments. The firm is well positioned to take advantage of a consolidating industry and global economic recovery.

 

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Jones Lang LaSalle Reports Full-Year and Fourth-Quarter 2010 Results – Page 7

 

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 2010 global revenue of more than $2.9 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 1.7 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 more than $41 billion of assets under management. For further information, please visit the company’s website, 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

Statements in this press release regarding, among other things, future financial results and performance, achievement, and 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 Reports on Form 10-Q for the quarters ended March 31, 2010, June 30, 2010, and September 30, 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.

 

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Jones Lang LaSalle Reports Full-Year and Fourth-Quarter 2010 Results – Page 8

 

Conference Call

The firm will conduct a conference call for shareholders, analysts and investment professionals on Wednesday, February 2 at 9:00 a.m. EST.

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:		+1 877 800 0896
•    International callers:		+1 706 679 7364
•    Pass code:		37984267

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=75940 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 fourth quarter 2010 earnings call has been posted to the Investor Relations section of the company’s website: www.joneslanglasalle.com.

Conference Call Replay

Available: 12:00 p.m. EST Wednesday, February 2 through 11:59 p.m. EST Wednesday, February 9 at the following numbers:

 

•    U.S. callers:		+1 800 642 1687
•    International callers:		+1 706 645 9291
•    Pass code:		37984267

Web Audio Replay

Audio replay will be available for download or stream within 24 hours of the conference call. This information and link is also available on the company’s website: www.joneslanglasalle.com.

If you have any questions, call Yvonne Peterson of Jones Lang LaSalle’s Investor Relations department at +1 312 228 2919.

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JONES LANG LASALLE INCORPORATED

Consolidated Statements of Operations

For the Three and Twelve Months Ended December 31, 2010 and 2009

(in thousands, except share data)

(Unaudited)

 

		Three Months Ended December 31,								Twelve Months Ended December 31,
		2010				2009				2010				2009
Revenue		$	956,253			$	815,085			$	2,925,613			$	2,480,736
Operating expenses:
Compensation and benefits			610,327				519,834				1,899,181				1,623,795
Operating, administrative and other			202,986				183,759				687,815				609,779
Depreciation and amortization			18,584				18,728				71,573				83,335
Restructuring charges			885				10,815				6,386				47,423
Total operating expenses			832,782				733,136				2,664,955				2,364,332
Operating income			123,471				81,949				260,658				116,404
Interest expense, net of interest income			10,063				11,428				45,802				55,018
Equity losses from unconsolidated ventures			(442	)			(2,637	)			(11,380	)			(58,867	)
Income before income taxes and noncontrolling interest			112,966				67,884				203,476				2,519
Provision for income taxes			28,220				15,483				49,038				5,677
Net income (loss)			84,746				52,401				154,438				(3,158	)
Net income attributable to noncontrolling interest			190				147				537				437
Net income (loss) attributable to the Company		$	84,556			$	52,254			$	153,901			$	(3,595	)
Net income (loss) attributable to common shareholders		$	84,397			$	52,026			$	153,524			$	(4,109	)
Basic earnings (loss) per common share		$	1.98			$	1.24			$	3.63			$	(0.11	)
Basic weighted average shares outstanding			42,652,006				41,839,401				42,295,526				38,543,087
Diluted earnings (loss) per common share		$	1.91			$	1.19			$	3.48			$	(0.11	)
Diluted weighted average shares outstanding			44,235,319				43,670,994				44,084,154				38,543,087
EBITDA		$	141,264			$	97,665			$	319,937			$	139,921

Please reference attached financial statement notes.

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JONES LANG LASALLE INCORPORATED

Segment Operating Results

For the Three and Twelve Months Ended December 31, 2010 and 2009

(in thousands)

(Unaudited)

 

		Three Months Ended December 31,								Twelve Months Ended December 31,
		2010				2009				2010				2009
REAL ESTATE SERVICES
AMERICAS
Revenue:
Operating revenue		$	428,431			$	344,662			$	1,261,178			$	1,032,784
Equity earnings (losses)			30				40				310				(1,141	)
			428,461				344,702				1,261,488				1,031,643
Operating expenses:
Compensation, operating and administrative expenses			349,751				292,502				1,077,556				897,891
Depreciation and amortization			9,179				9,414				35,594				47,526
			358,930				301,916				1,113,150				945,417
Operating income		$	69,531			$	42,786			$	148,338			$	86,226
EBITDA		$	78,710			$	52,200			$	183,932			$	133,752
EMEA
Revenue:
Operating revenue		$	237,397			$	227,692			$	728,838			$	646,505
Equity losses			(21	)			(1,807	)			(66	)			(2,747	)
			237,376				225,885				728,772				643,758
Operating expenses:
Compensation, operating and administrative expenses			211,755				204,161				690,427				632,387
Depreciation and amortization			5,529				5,400				18,778				21,041
			217,284				209,561				709,205				653,428
Operating income (loss)		$	20,092			$	16,324			$	19,567			$	(9,670	)
EBITDA		$	25,621			$	21,724			$	38,345			$	11,371
ASIA PACIFIC
Revenue:
Operating revenue		$	223,135			$	178,329			$	678,452			$	541,233
Equity earnings (losses)			55				—				55				(2,371	)
			223,190				178,329				678,507				538,862
Operating expenses:
Compensation, operating and administrative expenses			194,528				149,443				616,101				494,574
Depreciation and amortization			3,062				3,287				13,010				12,485
			197,590				152,730				629,111				507,059
Operating income		$	25,600			$	25,599			$	49,396			$	31,803
EBITDA		$	28,662			$	28,886			$	62,406			$	44,288
LASALLE INVESTMENT MANAGEMENT
Revenue:
Operating revenue		$	67,290			$	64,402			$	257,145			$	260,214
Equity losses			(506	)			(870	)			(11,679	)			(52,608	)
			66,784				63,532				245,466				207,606
Operating expenses:
Compensation, operating and administrative expenses			57,279				57,488				202,912				208,722
Depreciation and amortization			814				626				4,191				2,283
			58,093				58,114				207,103				211,005
Operating income (loss)		$	8,691			$	5,418			$	38,363			$	(3,399	)
EBITDA		$	9,505			$	6,044			$	42,554			$	(1,116	)
Total segment revenue			955,811				812,448				2,914,233				2,421,869
Reclassification of equity losses			(442	)			(2,637	)			(11,380	)			(58,867	)
Total revenue		$	956,253			$	815,085			$	2,925,613			$	2,480,736
Total operating expenses before restructuring charges			831,897				722,321				2,658,569				2,316,909
Operating income before restructuring charges		$	124,356			$	92,764			$	267,044			$	163,827

Please reference attached financial statement notes.

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JONES LANG LASALLE INCORPORATED

Consolidated Balance Sheets

December 31, 2010 and December 31, 2009

(in thousands)

 

		December 31, 2010 (Unaudited)				December 31, 2009
ASSETS
Current assets:
Cash and cash equivalents		$	251,897			$	69,263
Trade receivables, net of allowances			721,486				669,993
Notes and other receivables			76,374				73,984
Prepaid expenses			41,195				35,689
Deferred tax assets			82,740				82,793
Other			21,149				8,196
Total current assets			1,194,841				939,918
Property and equipment, net of accumulated depreciation			198,685				213,708
Goodwill, with indefinite useful lives			1,444,708				1,441,951
Identified intangibles, with finite useful lives, net of accumulated amortization			29,025				36,791
Investments in real estate ventures			174,578				167,310
Long-term receivables			42,735				52,941
Deferred tax assets			149,020				139,406
Other			116,269				104,908
Total assets		$	3,349,861			$	3,096,933
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities		$	400,681			$	347,650
Accrued compensation			554,841				479,628
Short-term borrowings			28,700				23,399
Deferred tax liabilities			3,942				1,164
Deferred income			45,146				38,575
Deferred business acquisition obligations			163,656				106,330
Other			99,346				98,349
Total current liabilities			1,296,312				1,095,095
Noncurrent liabilities:
Credit facilities			197,500				175,000
Deferred tax liabilities			15,450				3,210
Deferred compensation			15,130				27,039
Pension liabilities			5,031				8,210
Deferred business acquisition obligations			134,889				287,259
Minority shareholder redemption liability			34,118				32,475
Other			79,496				86,031
Total liabilities			1,777,926				1,714,319
Company shareholders’ equity:
Common stock, $.01 par value per share, 100,000,000 shares authorized; 42,659,999 and 41,843,947 shares issued and outstanding as of December 31, 2010, and December 31, 2009, respectively			427				418
Additional paid-in capital			883,046				854,227
Retained earnings			676,397				531,456
Shares held in trust			(6,263	)			(5,196	)
Accumulated other comprehensive income (loss)			15,324				(1,976	)
Total Company shareholders’ equity			1,568,931				1,378,929
Noncontrolling interest			3,004				3,685
Total equity			1,571,935				1,382,614
Total liabilities and equity		$	3,349,861			$	3,096,933

Please reference attached financial statement notes.

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JONES LANG LASALLE INCORPORATED

Summarized Consolidated Statements of Cash Flows

For the Twelve Months Ended December 31, 2010 and 2009

(in thousands)

(Unaudited)

 

		Twelve Months Ended December 31,
		2010				2009
Cash provided by operating activities		$	384,270			$	250,554
Cash used in investing activities			(196,674	)			(109,932	)
Cash used in financing activities			(4,962	)			(117,252	)
Net increase in cash and cash equivalents			182,634				23,370
Cash and cash equivalents, beginning of period			69,263				45,893
Cash and cash equivalents, end of period		$	251,897			$	69,263
Please reference attached financial statement notes.

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JONES LANG LASALLE INCORPORATED

Financial Statement Notes

 

1.

Charges excluded from GAAP net income (loss) to arrive at adjusted net income for the quarters and years ended December 31, 2010, and December 31, 2009, respectively, are primarily severance costs and non-cash charges related to co-investments. Below are reconciliations of GAAP net income (loss) to adjusted net income and calculations of earnings (loss) per share (“EPS”) for each net income (loss) total (in millions after tax, except per share):

 

		Three Months Ended December 31,								Twelve Months Ended December 31,
		2010				2009				2010				2009
GAAP net income (loss)		$	84.4			$	52.0			$	153.5			$	(4.1	)
Shares (in 000’s)			44,235				43,671				44,084				38,543
GAAP earnings (loss) per share		$	1.91			$	1.19			$	3.48			$	(0.11	)
GAAP net income (loss)		$	84.4			$	52.0			$	153.5			$	(4.1	)
Restructuring, net of tax			0.7				8.1				4.9				35.6
Non-cash co-investment charges, net of tax			0.7				2.8				7.9				38.5
Adjusted net income			85.8				62.9				166.3				70.0
Shares (in 000’s)			44,235				43,671				44,084				40,106
Adjusted earnings per share		$	1.94			$	1.44			$	3.77			$	1.75

Basic shares outstanding are used in the calculation of full-year 2009 GAAP EPS as the use of dilutive shares outstanding would cause that EPS calculation 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 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.

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

 

		Three Months Ended December 31,								Twelve Months Ended December 31,
		2010				2009				2010				2009
Net income (loss)		$	84,397			$	52,026			$	153,524			$	(4,109	)
Add:
Interest expense, net of interest income			10,063				11,428				45,802				55,018
Provision for income taxes			28,220				15,483				49,038				5,677
Depreciation and amortization			18,584				18,728				71,573				83,335
EBITDA		$	141,264			$	97,665			$	319,937			$	139,921
Add:
Non-cash co-investment charges			901				3,650				10,433				51,225
Restructuring			885				10,815				6,386				47,423
Adjusted EBITDA		$	143,050			$	112,130			$	336,756			$	238,569

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 December 31,								Twelve Months Ended December 31,
		2010				2009				2010				2009
Net cash provided by operating activities		$	276,198			$	206,693			$	384,270			$	250,554
Add (deduct):
Interest expense, net of interest income			10,063				11,428				45,802				55,018
Change in working capital and non-cash expenses			(173,217	)			(135,939	)			(159,173	)			(171,328	)
Provision for income taxes			28,220				15,483				49,038				5,677
EBITDA		$	141,264			$	97,665			$	319,937			$	139,921
Add:
Non-cash co-investment charges			901				3,650				10,433				51,225
Restructuring			885				10,815				6,386				47,423
Adjusted EBITDA		$	143,050			$	112,130			$	336,756			$	238,569

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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 Real Estate Services businesses consisting primarily of tenant representation and agency leasing; capital markets; property management and facilities management; project and development management; and advisory, consulting and valuation 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 Annual Report on Form 10-K for the year ended December 31, 2010, to be filed with the Securities and Exchange Commission.

 

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.