Jones Lang LaSalle Reports First-Quarter 2013 Adjusted EPS of $0.36
Revenue of $856 million; fee revenue of $781 million
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.
- Revenue growth of 6 percent achieved against strong prior-year quarter
- Capital Markets & Hotels outperformed markets in the Americas and EMEA
- Solid EMEA performance driven by 12 percent fee revenue growth and cost discipline
- Stable underlying business performance for LaSalle Investment Management against strong prior year, which had $20 million of equity earnings and incentive fees
- 10 percent increase in semi-annual dividend to $0.22 per share reflects confidence in cash generation
Summary Financial Results ($ in millions, except per share data) |
Three Months Ended March 31, |
||||||||||
2013 |
2012 |
||||||||||
Revenue |
$ 856 |
$ 813 |
|||||||||
Fee Revenue1 |
$ 781 |
$ 745 |
|||||||||
Adjusted Net Income2 |
$ 16 |
$ 22 |
|||||||||
U.S. GAAP Net Income |
$ 13 |
$ 14 |
|||||||||
Adjusted Earnings per Share2 |
$ 0.36 |
$ 0.50 |
|||||||||
Earnings per Share |
$ 0.29 |
$ 0.31 |
|||||||||
Adjusted EBITDA3 |
$ 48 |
$ 55 |
|||||||||
Adjusted EBITDA, Real Estate Services |
$ 34 |
$ 27 |
|||||||||
Adjusted EBITDA, LaSalle Investment Management |
$ 14 |
$ 28 |
|||||||||
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 ($ in millions, "LC" = local currency) |
Three Months Ended March 31, |
% |
||||||||||||||
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 Fee Revenue1 |
212.1 |
201.1 |
7% |
|||||||||||||
Project & Development Services |
113.6 |
107.5 |
7% |
|||||||||||||
Project & Development Services Fee Revenue1 |
77.1 |
78.4 |
(1%) |
|||||||||||||
Advisory, Consulting and Other |
81.7 |
79.0 |
5% |
|||||||||||||
Total RES Revenue |
$ 796.3 |
$ 745.8 |
8% |
|||||||||||||
Total RES Fee Revenue1 |
$ 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 Management Revenue |
$ 59.7 |
$ 67.5 |
(11%) |
|||||||||||||
Total Firm Revenue |
$ 856.0 |
$ 813.3 |
6% |
|||||||||||||
Total Firm Fee Revenue1 |
$ 780.5 |
$ 744.9 |
6% |
|||||||||||||
n/m – not meaningful |
||||||||||||||||
Consolidated Q1 Performance Highlights:
- 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.
- LaSalle Investment Management's advisory fees showed continued stability in advance of growth prospects from new investor mandates.
- 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
- The firm's total net debt was $870 million at quarter end, flat with the first quarter last year.
- 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.
- 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 $0.20 per share payment made in December 2012.
Business Segment Performance Highlights
Americas Real Estate Services
Americas Revenue ($ in millions, "LC" = local currency) |
Three Months Ended March 31, |
% |
|||||||||||||||
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 Fee Revenue1 |
89.4 |
85.6 |
5% |
||||||||||||||
Project & Development Services |
37.9 |
39.6 |
(4%) |
||||||||||||||
Project & Development Services Fee Revenue1 |
37.7 |
39.5 |
(4%) |
||||||||||||||
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 Revenue1 |
$ 342.4 |
$ 325.6 |
5% |
||||||||||||||
n/m – not meaningful |
|||||||||||||||||
Americas Q1 Performance Highlights:
- Revenue growth was driven by Capital Markets & Hotels, up 39 percent, as market share gains continued.
- Fee-based operating expenses were $328 million for the year, up a modest 4 percent.
- 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.
- EBITDA was $25 million, up from $22 million in 2012. EBITDA margin calculated on a fee revenue basis was 7.3 percent, up from 6.7 percent.
EMEA Real Estate Services
EMEA Revenue ($ in millions, "LC" = local currency) |
Three Months Ended March 31, |
% Change in LC |
||||||||||||||||||
2013 |
2012 |
|||||||||||||||||||
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 Fee Revenue1 |
40.4 |
41.2 |
(2%) |
|||||||||||||||||
Project & Development Services |
56.0 |
50.5 |
11% |
|||||||||||||||||
Project & Development Services Fee Revenue1 |
24.1 |
24.2 |
0% |
|||||||||||||||||
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 Revenue1 |
$ 210.7 |
$ 190.3 |
12% |
|||||||||||||||||
n/m – not meaningful |
||||||||||||||||||||
EMEA Q1 Performance Highlights:
- Revenue growth was driven by Capital Markets & Hotels and, geographically, by Russia and the UK.
- 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.
- Adjusted operating income, which excludes King Sturge amortization, was a loss of $1 million, compared with an $8 million loss in 2012.
- EBITDA was $3 million, compared with a loss of $4 million in 2012. EBITDA margin calculated on a fee revenue basis was 1.6 percent compared with a loss of 2.3 percent last year.
Asia Pacific Real Estate Services
Asia Pacific Revenue ($ in millions, "LC" = local currency) |
Three Months Ended March 31, |
% |
||||||||||||||||
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 Fee Revenue1 |
82.3 |
74.3 |
14% |
|||||||||||||||
Project & Development Services |
19.7 |
17.4 |
17% |
|||||||||||||||
Project & Development Services Fee Revenue1 |
15.3 |
14.7 |
7% |
|||||||||||||||
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 Revenue1 |
$ 168.0 |
$ 161.6 |
6% |
|||||||||||||||
n/m – not meaningful |
||||||||||||||||||
Asia Pacific Q1 Performance Highlights:
- 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.
- 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.
- 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.
- EBITDA was $6 million, compared with $10 million last year. EBITDA margin calculated on a fee revenue basis was 3.3 percent, compared with 6.2 percent last year.
LaSalle Investment Management
LaSalle Investment Management Revenue |
Three Months Ended March 31, |
% |
|||||||||||||||
($ in millions, "LC" = local currency) |
2013 |
2012 |
|||||||||||||||
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:
- Advisory fees were $56 million for the quarter, consistent with quarterly averages throughout 2012.
- Operating expenses were $52 million for the quarter, flat with 2012.
- 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.
- 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:
- U.S. callers: +1 877 356 3887
- International callers: +1 706 679 7364
- 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 [email protected]
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:
- U.S. callers: + 1 855 859 2056
- International callers: + 1 404 537 3406
- 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 [email protected].
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 other |
249,921 |
232,596 |
|||||||||||
Depreciation and amortization |
19,079 |
19,659 |
|||||||||||
Restructuring and acquisition charges |
3,168 |
8,952 |
|||||||||||
Total operating expenses |
835,888 |
798,723 |
|||||||||||
Operating income |
20,100 |
14,571 |
|||||||||||
Interest expense, net of interest income |
(7,923) |
(7,426) |
|||||||||||
Equity earnings from unconsolidated ventures |
5,482 |
11,848 |
|||||||||||
Income before income taxes and noncontrolling interest |
17,659 |
18,993 |
|||||||||||
Provision for income taxes |
4,397 |
4,824 |
|||||||||||
Net income |
13,262 |
14,169 |
|||||||||||
Net income attributable to noncontrolling interest |
106 |
145 |
|||||||||||
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 outstanding |
44,080,767 |
43,605,273 |
|||||||||||
Diluted earnings per common share |
$ 0.29 |
$ 0.31 |
|||||||||||
Diluted weighted average shares outstanding |
45,055,399 |
44,685,138 |
|||||||||||
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 costs1 |
(19,278) |
(15,888) |
||||||||
Total segment fee revenue |
342,406 |
325,589 |
||||||||
Operating expenses: |
||||||||||
Compensation, operating and administrative expenses |
336,559 |
319,676 |
||||||||
Depreciation and amortization |
10,453 |
9,884 |
||||||||
Total segment operating expenses |
347,012 |
329,560 |
||||||||
Gross contract costs1 |
(19,278) |
(15,888) |
||||||||
Total fee-based segment operating expenses |
327,734 |
313,672 |
||||||||
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 costs1 |
(34,207) |
(27,702) |
||||||||
Total segment fee revenue |
210,698 |
190,285 |
||||||||
Operating expenses: |
||||||||||
Compensation, operating and administrative expenses |
241,525 |
222,369 |
||||||||
Depreciation and amortization |
4,983 |
6,202 |
||||||||
Total segment operating expenses |
246,508 |
228,571 |
||||||||
Gross contract costs1 |
(34,207) |
(27,702) |
||||||||
Total fee-based segment operating expenses |
212,301 |
200,869 |
||||||||
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 costs1 |
(21,997) |
(24,820) |
||||||||
Total segment fee revenue |
168,018 |
161,594 |
||||||||
Operating expenses: |
||||||||||
Compensation, operating and administrative expenses |
184,449 |
176,360 |
||||||||
Depreciation and amortization |
3,128 |
3,088 |
||||||||
Total segment operating expenses |
187,577 |
179,448 |
||||||||
Gross contract costs1 |
(21,997) |
(24,820) |
||||||||
Total fee-based segment operating expenses |
165,580 |
154,628 |
||||||||
Operating income |
$ 2,438 |
$ 6,966 |
||||||||
EBITDA |
$ 5,566 |
$ 10,054 |
||||||||
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 expenses |
51,107 |
51,706 |
||||||||
Depreciation and amortization |
516 |
486 |
||||||||
Total segment operating expenses |
51,623 |
52,192 |
||||||||
Operating income |
$ 13,243 |
$ 27,072 |
||||||||
EBITDA |
$ 13,759 |
$ 27,558 |
||||||||
SEGMENT RECONCILING ITEMS: |
||||||||||
Total segment revenue |
$ 861,470 |
$ 825,142 |
||||||||
Reclassification of equity earnings |
5,482 |
11,848 |
||||||||
Total revenue |
$ 855,988 |
$ 813,294 |
||||||||
Total operating expenses before restructuring charges |
832,720 |
789,771 |
||||||||
Operating income before restructuring charges |
$ 23,268 |
$ 23,523 |
||||||||
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 allowances |
913,615 |
996,681 |
807,650 |
|||||||
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 assets |
1,419,561 |
1,515,529 |
1,131,580 |
|||||||
Property and equipment, net of accumulated depreciation |
260,961 |
269,338 |
244,672 |
|||||||
Goodwill, with indefinite useful lives |
1,836,933 |
1,853,761 |
1,784,275 |
|||||||
Identified intangibles, with finite useful lives, net of accumulated amortization |
43,556 |
45,932 |
49,241 |
|||||||
Investments in real estate ventures |
272,161 |
268,107 |
236,298 |
|||||||
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 obligations |
119,302 |
105,772 |
32,736 |
|||||||
Warehouse facility |
137,445 |
144,257 |
- |
|||||||
Other |
101,637 |
109,909 |
90,458 |
|||||||
Total current liabilities |
1,279,228 |
1,661,971 |
993,573 |
|||||||
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 obligations |
100,847 |
107,661 |
276,226 |
|||||||
Minority shareholder redemption liability |
19,707 |
19,489 |
18,542 |
|||||||
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, respectively |
441 |
441 |
436 |
|||||||
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 (loss) income |
(39,679) |
8,946 |
1,917 |
|||||||
Total Company shareholders' equity |
1,922,546 |
1,951,183 |
1,751,873 |
|||||||
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 activities |
303,544 |
129,663 |
|
Net decrease in cash and cash equivalents |
$ (18,689) |
(82,608) |
|
Cash and cash equivalents, beginning of period |
152,159 |
184,454 |
|
Cash and cash equivalents, end of period |
$ 133,470 |
$ 101,846 |
|
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
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