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

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

Apr 30, 2013, 16:20 ET from Jones Lang LaSalle Incorporated

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,

% Change in LC

2013

2012

Real Estate Services ("RES")

Leasing

$    229.2

$  230.2

0%

Capital Markets & Hotels

120.7

88.7

37%

Property & Facility Management

251.1

240.4

6%

Property & Facility Management 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,

% Change in LC

2013

2012

Leasing

$    152.3

$   149.6

2%

Capital Markets & Hotels

38.7

27.9

39%

Property & Facility Management

108.5

101.4

7%

Property & Facility Management 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,

% Change in LC

2013

2012

Leasing

$   28.0

$   33.3

(15%)

Capital Markets & Hotels

23.8

21.6

12%

Property & Facility Management

99.9

96.4

8%

Property & Facility Management

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,

% Change in LC

   ($ 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 prnwebcast@multivu.com 

Supplemental Information

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

Conference Call Replay

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

  • 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 JLLInvestorRelations@am.jll.com.

JONES LANG LASALLE INCORPORATED

Consolidated Statements of Operations

For the Three Months Ended March 31, 2013 and 2012

(in thousands, except share data)

(Unaudited)

Three Months Ended March 31,

2013

2012

Revenue

$                  855,988

$                  813,294

Operating expenses:

Compensation and benefits 

563,720

537,516

Operating, administrative and 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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