Jones Lang LaSalle Reports Full-Year Adjusted Earnings per Share of $5.48; Revenue of $3.9 billion

Record full-year revenue increased 12 percent; fee revenue grew 10 percent

29 Jan, 2013, 16:30 ET from Jones Lang LaSalle

CHICAGO, Jan. 29, 2013 /PRNewswire/ -- Jones Lang LaSalle Incorporated (NYSE: JLL) today reported adjusted EPS for 2012 of $5.48, up from $4.83 last year.  Record full-year revenue of $3.9 billion was up 12 percent in local currency.  Fee revenue was $3.6 billion, an increase of 10 percent.

  • Adjusted EPS growth of 13 percent driven by broad-based revenue performance
  • Significant full-year margin improvement in EMEA from management actions despite challenging market conditions
  • Strong Q4 finish in Asia Pacific with 20 percent revenue growth driven by Capital Markets and continued success in corporate outsourcing
  • Continued healthy, above-market leasing performance in the Americas
  • $275 million, 10-year bond issuance strengthened investment-grade balance sheet

 

Summary Financial Results

   ($ in millions, except per share data)

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2012

2011

2012

2011

Revenue

$    1,249

$  1,148

$    3,933

$  3,585

Fee Revenue1

$    1,165

$  1,081

$    3,640

$  3,374

Adjusted Net Income2

$       117

$     114

$       245

$     215

U.S. GAAP Net Income

$       107

$       85

$       208

$     164

Adjusted Earnings per Share2

$      2.60

$    2.56

$      5.48

$    4.83

Earnings per Share

$      2.38

$    1.91

$      4.63

$    3.70

Adjusted EBITDA3

$       185

$     179

$       436

$     395

Adjusted Operating Income Margin1

14.1%

14.6%

9.3%

9.4%

Adjusted EBITDA Margin1

15.9%

16.6%

12.0%

11.7%

See Financial Statement Notes (1), (2) and (3) following the Financial Statements in this News Release.

"Our 2012 performance met our expectations, with a strong finish to the year in challenging global markets," said Colin Dyer, Chief Executive Officer of Jones Lang LaSalle. "Again, we continue to secure market share growth, productivity improvements and expanded client relationships.  Our quarterly and full-year performance leaves us confident that we will continue to progress in 2013," Dyer added.

Consolidated Revenue

   ($ in millions, "LC" = local currency)

Three Months Ended

December 31,

% Change

 in LC

Twelve Months Ended

December 31,

% Change

 in LC

2012

2011

2012

2011

Real Estate Services ("RES")

Leasing

$      439.2

$      408.7

8%

$   1,277.8

$   1,189.1

9%

Capital Markets & Hotels

194.4

173.2

12%

512.9

459.6

13%

Property & Facility Management

283.9

261.5

9%

1,012.3

864.4

19%

Property & Facility Management Fee Revenue1

242.4

222.7

9%

850.1

761.7

13%

Project & Development Services

143.2

126.7

15%

486.2

441.5

14%

Project & Development Services Fee Revenue1

101.4

98.6

4%

355.8

333.7

9%

Advisory, Consulting and Other

124.8

115.6

8%

382.2

358.3

9%

     Total RES Revenue

$   1,185.5

$   1,085.7

9%

$     3,671.4

$   3,312.9

13%

Total RES Fee Revenue1

$   1,102.2

$   1,018.8

8%

$     3,378.8

$   3,102.4

10%

LaSalle Investment Management

Advisory Fees

$        56.2

$        60.1

(7%)

$        228.1

$      245.0

(6%)

Transaction Fees & Other

4.6

2.3

104%

10.5

7.3

47%

Incentive Fees

2.4

0.1

n/m

22.8

19.3

18%

     Total LaSalle Investment Management Revenue

$        63.2

$        62.5

0%

$        261.4

$      271.6

(3%)

Total Firm Revenue

$   1,248.7

$   1,148.2

9%

$     3,932.8

$   3,584.5

12%

Total Firm Fee Revenue1

$   1,165.4

$   1,081.3

8%

$     3,640.2

$   3,374.0

10%

n/m – not meaningful

Consolidated fee revenue growth for the full year was driven by solid Leasing performance and continued growth in Property & Facility Management.  Leasing revenue grew 9 percent in local currency for the year, with the largest growth in the Americas.  Property & Facility Management fee revenue rose 13 percent in local currency, also led by the Americas region, which increased 15 percent in local currency, followed by Asia Pacific, up 13 percent.  LaSalle Investment Management's advisory fees decreased from 2011 due to significant asset and portfolio sales, but have remained consistent throughout each quarter of 2012.  LaSalle generated $23 million of incentive fees and $24 million of equity earnings during the year.   

Consolidated quarter-to-date revenue rose to $1.2 billion, 9 percent higher in local currency than the fourth quarter of 2011, and was up 8 percent on a fee revenue basis.   

Operating expenses, excluding restructuring and acquisition charges, were $3.6 billion for the year, an increase of 10 percent, 12 percent in local currency, compared with $3.3 billion in 2011.  The increase was driven by higher variable compensation resulting from improved Leasing revenue, as well as higher compensation resulting from increased headcount primarily to service new and expanded Property & Facility Management contracts.  Compensation expense was further impacted by the firm's previously disclosed decision to eliminate its Stock Ownership Program ("SOP"), which resulted in approximately $11 million of accelerated compensation expense in the current year, a timing difference rather than a permanent increase in compensation, as well as a timing difference of $5 million related to the acceleration of the final deferred payment for the Staubach acquisition and extension of employment agreements with the majority of the Staubach shareholders who are working in the firm.  Fee-based operating expenses1, excluding restructuring and acquisition charges, were $3.3 billion, an increase of 9 percent in local currency, also mostly attributable to higher compensation expense.

Full-year results included $45 million of restructuring and acquisition charges, principally related to integration and retention costs for the second-quarter 2011 acquisition of King Sturge, but also including severance and lease exit costs in targeted areas of the business that are anticipated to remain economically challenged for an extended period of time.  The firm's results also included $5 million of intangibles amortization related to the King Sturge acquisition.  

Fourth-quarter fee-based operating expenses excluding restructuring and acquisition charges were $1.0 billion, up 8 percent from $928 million last year.  The majority of the increase was due to increases in variable compensation, notably bonus and commission expense, as several of the firm's businesses reached higher bonus and commission hurdles in the fourth quarter, particularly in the United States.

Balance Sheet

During the fourth quarter, the firm issued $275 million of 4.4% Senior Notes due November 2022.  The investment-grade notes were sold to a diverse group of investors and further strengthen the firm's liquidity and balance sheet position.  The proceeds from the issuance were used to reduce borrowings on the firm's long-term revolving credit facility.  Outstanding debt on this facility was $169 million as of December 31, 2012, compared with $463 million last year.   

Also in the quarter, the firm made a payment of $115 million to certain former Staubach shareholders.  This represents an acceleration of the majority of a $156 million deferred acquisition payment previously recorded and scheduled to be paid in August 2013.  In addition, the Americas' Leasing performance since the 2008 merger produced an earn-out of $36 million, of which $5 million was paid in the second quarter of 2012.  The remaining $31 million has been recorded as a deferred acquisition obligation as of December 31, 2012, and will be paid in the first half of 2013.  Total net debt, which includes deferred acquisition obligations, decreased $105 million during 2012 to $538 million as of December 31, 2012.

Business Segment Performance Highlights

Americas Real Estate Services

Full-year revenue in the Americas region was $1.7 billion, an increase of 15 percent from 2011.  On a fee revenue basis, revenue increased 11 percent.  The largest growth was in Capital Markets & Hotels, which increased 25 percent, and Property & Facility Management, which increased 15 percent.  Leasing revenue increased 9 percent despite overall office leasing volumes dropping 20 percent in the United States.

 

Americas Revenue

   ($ in millions, "LC" = local currency)

Three Months Ended

December 31,

% Change in LC

Twelve Months Ended  December 31,

% Change in LC

2012

2011

2012

2011

Leasing

$      278.9

$     258.6

8%

$       829.6

$    760.7

9%

Capital Markets & Hotels

59.4

48.1

24%

168.5

135.6

25%

Property & Facility Management

133.2

117.8

13%

458.7

349.7

32%

Property & Facility Management Fee Revenue1

111.1

101.2

10%

375.0

329.3

15%

Project & Development Services

51.9

54.3

(4%)

182.9

178.4

4%

Project & Development Services Fee Revenue1

51.7

53.9

(3%)

182.1

177.9

4%

Advisory, Consulting and Other

31.5

30.7

3%

107.0

98.2

9%

     Operating Revenue

$     554.9

$     509.5

9%

$    1,746.7

$ 1,522.6

15%

Equity Earnings

0.1

-

n/m

-

2.7

n/m

Total Segment Revenue

$     555.0

$     509.5

9%

$     1,746.7

$ 1,525.3

15%

Total Segment Fee Revenue1

$     532.7

$     492.5

9%

$    1,662.2

$ 1,504.4

11%

n/m – not meaningful

Operating expenses were $1.6 billion for the year, a 16 percent increase from 2011.  Fee-based operating expenses increased 12 percent from last year.  The year-over-year increase was due to higher fixed compensation costs associated with a larger employee base, as well as higher commission expenses related to improved Leasing and Capital Markets & Hotels revenue.  The SOP elimination earlier this year has added approximately $5 million to compensation expense compared with 2011.  Also impacting Americas full-year and fourth-quarter operating expenses was $5 million of compensation expense related to acceleration of the deferred acquisition payment.

Operating income was $168 million for the year, up from $163 million in 2011.  EBITDA for the year was $210 million, compared with $201 million in 2011.  EBITDA margin calculated on a fee revenue basis was 12.7 percent compared with 13.4 percent last year.  Adjusting for the impact of the SOP elimination and acceleration of deferred acquisition payments, 2012 EBITDA margin would have been equal to a similarly adjusted 2011.

Fourth-quarter fee-based operating expenses were $457 million, compared with $408 million in 2011, a 12 percent increase, and included the $5 million of compensation expense related to the accelerated deferred acquisition payment and $2 million from the elimination of the SOP.

EMEA Real Estate Services

EMEA's full-year revenue was $1.0 billion, a 12 percent increase in local currency.  Revenue increased on a fee revenue basis by 9 percent, broad-based but driven by Project & Development Services, which includes the Tetris fit-out business, and Leasing.  Fourth-quarter fee revenue was $318 million, consistent with 2011 levels.

EMEA Revenue

   ($ in millions, "LC" = local currency)

Three Months Ended

December 31,

% Change

in LC

Twelve Months Ended

December 31,

% Change

in LC

2012

2011

2012

2011

Leasing

$    83.7

$     81.0

4%

$    250.0

$   236.1

11%

Capital Markets & Hotels

94.9

103.1

(9%)

235.1

229.1

5%

Property & Facility Management

42.4

42.5

(1%)

155.2

147.9

9%

Property & Facility Management Fee Revenue1

42.4

42.5

(1%)

155.2

147.9

9%

Project & Development Services

64.5

51.4

28%

219.8

182.0

28%

Project & Development Services Fee Revenue1

30.5

28.8

7%

106.5

96.3

16%

Advisory, Consulting and Other

66.8

62.3

7%

189.1

178.9

10%

     Operating Revenue

$   352.3

$   340.3

4%

$ 1,049.2

$   974.0

12%

Equity Losses

(0.1)

-

n/m

(0.3)

(0.3)

n/m

Total Segment Revenue

$   352.2

$   340.3

4%

$ 1,048.9

$   973.7

12%

Total Segment Fee Revenue1

$   318.2

$     317.7

0%

$    935.6

$     888.0

9%

n/m – not meaningful

Operating expenses, which include $5 million of King Sturge intangibles amortization, were $1.0 billion for the year, an increase of 10 percent in local currency from 2011.  Operating expenses also include $28 million of additional gross contract costs related to the Project & Development Services business line compared with last year. Fee-based operating expenses increased 7 percent from 2011.  The year-over-year increase was primarily due to higher fixed compensation from the addition of King Sturge for a full year in 2012, compared with just over seven months in 2011.

Full-year EBITDA was $75 million, compared with $57 million in 2011.  EBITDA margin calculated on a fee revenue basis was 8.0 percent compared with 6.5 percent last year reflecting the benefits of cost actions taken across the region during the year.

Fourth-quarter fee-based operating expenses were $272 million, compared with $284 million in 2011, a reduction of 4 percent in local currency.  Included in operating expenses was $1 million of intangibles amortization compared with $5 million last year.

Asia Pacific Real Estate Services

Asia Pacific's revenue for the year increased 9 percent in local currency, to $876 million.  Fee revenue was $781 million, an increase of 11 percent, led by 15 percent growth in Capital Markets & Hotels and 13 percent annuity growth in Property & Facility Management. 

Asia Pacific Revenue

   ($ in millions, "LC" = local currency)

Three Months Ended

December 31,

% Change

in LC

Twelve Months Ended December 31,

% Change

in LC

2012

2011

2012

2011

Leasing

$      76.6

$      69.1

10%

$     198.2

$     192.3

4%

Capital Markets & Hotels

40.1

22.0

79%

109.3

94.9

15%

Property & Facility Management

108.3

101.2

7%

398.4

366.8

10%

Property & Facility Management Fee Revenue1

88.9

79.0

12%

319.9

284.5

13%

Project & Development Services

26.8

21.0

28%

83.5

81.1

6%

Project & Development Services Fee Revenue1

19.2

15.9

21%

67.2

59.5

16%

Advisory, Consulting and Other

26.5

22.6

16%

86.1

81.2

6%

     Operating Revenue

$     278.3

$      235.9

18%

$     875.5

$     816.3

9%

Equity Earnings

-

0.1

n/m

0.1

0.2

n/m

Total Segment Revenue

$     278.3

$      236.0

18%

$     875.6

$     816.5

9%

Total Segment Fee Revenue1

$     251.3

$      208.7

20%

$     780.8

$     712.6

11%

n/m – not meaningful

Operating expenses were $810 million for the year, an increase of 9 percent in local currency.  Operating expenses included $95 million of gross contract costs, down from $104 million last year.  Fee-based operating expenses rose 12 percent, to $716 million, due to a larger employee base servicing new and expanded Property & Facility Management contracts and inflationary compensation pressure across the region.  

The region's EBITDA for the year was $78 million, consistent with 2011.  EBITDA margin calculated on a fee revenue basis improved significantly in the fourth quarter; however, full-year EBITDA margin was 10.0 percent, down from 11.0 percent last year due to the slower growth challenges of the previous quarters.

Fee-based operating expenses for the quarter were $218 million, compared with $184 million in 2011. 

LaSalle Investment Management

LaSalle Investment Management's advisory fees were $228 million for the year, down 6 percent in local currency.  Advisory fees in the fourth quarter remained flat compared with the first three quarters of 2012.  During the year, the business recognized $23 million of incentive fees as a result of positive performance for clients, and $24 million of equity earnings, primarily from asset sales. 

LaSalle Investment

  Management Revenue

Three Months Ended

December 31,

% Change

in LC

Twelve Months Ended

  December 31,

% Change

in LC

   ($ in millions, "LC" = local currency)

2012

2011

2012

2011

Advisory Fees

$    56.2

$    60.1

(7%)

$    228.1

$     245.0

(6%)

Transaction Fees & Other

4.6

2.3

104%

10.5

7.3

47%

Incentive Fees

2.4

0.1

n/m

22.8

19.3

18%

     Operating Revenue

$    63.2

$    62.5

0%

$     261.4

$     271.6

(3%)

Equity Earnings

1.4

3.7

(62%)

24.0

3.8

n/m

Total Segment Revenue

$    64.6

$    66.2

(3%)

$     285.4

$     275.4

5%

n/m – not meaningful

Assets under management remained at $47 billion as of December 31, 2012.  EBITDA was $74 million for the year, compared with $60 million in 2011.  EBITDA margin was 25.9 percent in 2012 compared with 21.7 percent last year.

Summary

The firm finished the year with a strong fourth-quarter performance and delivered record revenue in 2012.  Notable market share gains continued as the firm won new mandates and expanded existing client relationships.  Healthy new business pipelines and moderately improving global market dynamics, combined with an ongoing focus on productivity and cost discipline, provide confidence for the firm's performance in 2013.

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. Its investment management business, LaSalle Investment Management, has $47.0 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 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, 2011, and in the Quarterly Report on Form 10-Q for the quarters ended March 31, 2012, June 30, 2012, and September 30, 2012, 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.

Conference Call

The firm will conduct a conference call for shareholders, analysts and investment professionals on Tuesday, January 29 at 6:00 p.m. EST.

To participate in the teleconference, 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:  87480384

 

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=91555 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 fourth-quarter 2012 earnings call has been posted to the Investor Relations section of the company's website:  www.jll.com.

Conference Call Replay

Available: 7:00 a.m. EST Wednesday, January 30 through 11:59 p.m. EST Wednesday, February 6 at the following numbers:

  • U.S. callers:  +1 855 859 2056
  • International callers:  +1 404 537 3406
  • Pass code:  87480384

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 and Twelve Months Ended December 31, 2012 and 2011

(in thousands, except share data)

(Unaudited)

Three Months Ended December 31,

Twelve Months Ended December 31,

2012

2011

2012

2011

Revenue

$               1,248,704

$               1,148,175

$          3,932,830

$          3,584,544

Operating expenses:

Compensation and benefits 

794,160

722,469

2,546,965

2,330,520

Operating, administrative and other

270,501

250,173

972,231

863,860

Depreciation and amortization 

20,100

22,333

78,810

82,832

Restructuring and acquisition charges

13,045

33,983

45,421

56,127

Total operating expenses

1,097,806

1,028,958

3,643,427

3,333,339

Operating income

150,898

119,217

289,403

251,205

Interest expense, net of interest income

(10,337)

(8,372)

(35,173)

(35,591)

Equity earnings from unconsolidated ventures 

1,358

3,703

23,857

6,385

Income before income taxes and noncontrolling interest

141,919

114,548

278,087

221,999

Provision for income taxes  

34,657

29,525

69,244

56,387

Net income

107,262

85,023

208,843

165,612

Net income attributable to noncontrolling interest

190

107

793

1,228

Net income attributable to the Company

$                  107,072

$                   84,916

$             208,050

$             164,384

Net income attributable to common shareholders

$                  106,831

$                   84,765

$             207,556

$             163,997

Basic earnings per common share

$                       2.43

$                       1.95

$                  4.73

$                  3.80

Basic weighted average shares outstanding

44,051,014

43,469,543

43,848,737

43,170,383

Diluted earnings per common share

$                       2.38

$                       1.91

$                  4.63

$                  3.70

Diluted weighted average shares outstanding

44,953,524

44,402,412

44,799,437

44,367,359

EBITDA 

$                  171,925

$                  144,995

$             390,783

$             338,807

Please reference attached financial statement notes.

 

 

 JONES LANG LASALLE INCORPORATED 

 Segment Operating Results 

 For the Three and Twelve Months Ended December 31, 2012 and 2011 

 (in thousands) 

 (Unaudited) 

 Three Months Ended December 31, 

 Twelve Months Ended December 31, 

2012

2011

2012

2011

 REAL ESTATE SERVICES  

       AMERICAS 

 Revenue: 

 Operating revenue 

$                      554,867

$                      509,478

$                    1,746,708

$                    1,522,607

 Equity earnings (losses)  

74

16

(3)

2,682

 Total segment revenue 

554,941

509,494

1,746,705

1,525,289

 Gross contract costs1

(22,246)

(16,992)

(84,425)

(20,882)

 Total segment fee revenue 

532,695

492,502

1,662,280

1,504,407

 Operating expenses: 

 Compensation, operating and administrative expenses 

468,441

415,377

1,536,211

1,324,115

 Depreciation and amortization 

11,205

9,710

42,333

38,502

 Total segment operating expenses 

479,646

425,087

1,578,544

1,362,617

 Gross contract costs1

(22,246)

(16,992)

(84,425)

(20,882)

 Total fee-based segment operating expenses 

457,400

408,095

1,494,119

1,341,735

 Operating income 

$                        75,295

$                        84,407

$                      168,161

$                      162,672

 EBITDA 

$                        86,500

$                        94,117

$                      210,494

$                      201,174

       EMEA 

 Revenue: 

 Operating revenue 

$                      352,321

$                      340,294

$                    1,049,226

$                      974,014

 Equity (losses) / earnings 

(82)

2

(310)

(304)

 Total segment revenue 

352,239

340,296

1,048,916

973,710

 Gross contract costs1

(34,027)

(22,555)

(113,321)

(85,692)

 Total segment fee revenue 

318,212

317,741

935,595

888,018

 Operating expenses: 

 Compensation, operating and administrative expenses 

300,805

297,278

974,022

916,412

 Depreciation and amortization 

5,001

9,051

21,644

29,378

 Total segment operating expenses 

305,806

306,329

995,666

945,790

 Gross contract costs1

(34,027)

(22,555)

(113,321)

(85,692)

 Total fee-based segment operating expenses 

271,779

283,774

882,345

860,098

 Operating income 

$                        46,433

$                        33,967

$                        53,250

$                        27,920

 EBITDA 

$                        51,434

$                        43,018

$                        74,894

$                        57,298

       ASIA PACIFIC 

 Revenue: 

 Operating revenue 

$                      278,329

$                      235,938

$                      875,476

$                      816,301

 Equity (losses) / earnings 

(11)

28

150

178

 Total segment revenue 

278,318

235,966

875,626

816,479

 Gross contract costs1

(27,044)

(27,329)

(94,816)

(103,892)

 Total segment fee revenue 

251,274

208,637

780,810

712,587

 Operating expenses: 

 Compensation, operating and administrative expenses 

241,952

207,797

797,396

738,107

 Depreciation and amortization 

3,329

3,001

12,886

12,203

 Total segment operating expenses 

245,281

210,798

810,282

750,310

 Gross contract costs1

(27,044)

(27,329)

(94,816)

(103,892)

 Total fee-based segment operating expenses 

218,237

183,469

715,466

646,418

 Operating income 

$                        33,037

$                        25,168

$                        65,344

$                        66,169

 EBITDA 

$                        36,366

$                        28,169

$                        78,230

$                        78,372

LASALLE INVESTMENT      

     MANAGEMENT 

 Revenue: 

 Operating revenue 

$                        63,187

$                        62,465

$                      261,420

$                      271,622

 Equity earnings 

1,377

3,657

24,020

3,829

 Total segment revenue 

64,564

66,122

285,440

275,451

 Operating expenses: 

 Compensation, operating and administrative expenses 

53,463

52,191

211,567

215,745

 Depreciation and amortization 

565

570

1,947

2,750

 Total segment operating expenses 

54,028

52,761

213,514

218,495

 Operating income 

$                        10,536

$                        13,361

$                        71,926

$                        56,956

 EBITDA 

$                        11,101

$                        13,931

$                        73,873

$                        59,706

 Total segment revenue 

1,250,062

1,151,878

3,956,687

3,590,929

 Reclassification of equity earnings 

1,358

3,703

23,857

6,385

      Total revenue 

$                    1,248,704

$                    1,148,175

$                    3,932,830

$                    3,584,544

      Total operating expenses before restructuring charges 

1,084,761

994,975

3,598,006

3,277,212

      Operating income before restructuring charges 

$                      163,943

$                      153,200

$                      334,824

$                      307,332

Please reference attached financial statement notes.

JONES LANG LASALLE INCORPORATED

Consolidated Balance Sheets

December 31, 2012 and December 31, 2011

(in thousands)

December 31,

December 31,

2012

2011

ASSETS

Current assets:

Cash and cash equivalents

$             152,159

$             184,454

Trade receivables, net of allowances

996,681

907,772

Notes and other receivables

101,952

97,315

Warehouse receivables

144,257

-

Prepaid expenses

53,165

45,274

Deferred tax assets

50,831

53,553

Other

16,484

12,516

Total current assets

1,515,529

1,300,884

Property and equipment, net of accumulated depreciation

269,338

241,415

Goodwill, with indefinite useful lives

1,853,761

1,751,207

Identified intangibles, with finite useful lives, net of accumulated amortization

45,932

52,590

Investments in real estate ventures 

268,107

224,854

Long-term receivables

58,881

54,840

Deferred tax assets

197,892

186,605

Other

142,059

120,241

Total assets

$          4,351,499

$          3,932,636

LIABILITIES AND EQUITY 

Current liabilities:

Accounts payable and accrued liabilities

$             497,817

$             436,045

Accrued compensation 

685,718

655,658

Short-term borrowings

32,233

65,091

Deferred tax liabilities

10,113

6,044

Deferred income

76,152

58,974

Deferred business acquisition obligations

105,772

31,164

Warehouse facility

144,257

-

Other

109,909

95,641

Total current liabilities

1,661,971

1,348,617

Noncurrent liabilities:

Credit facilities

169,000

463,000

Long-term senior notes

275,000

-

Deferred tax liabilities

3,106

7,646

Deferred compensation

75,320

57,118

Pension liabilities

5,281

17,233

Deferred business acquisition obligations

107,661

267,896

Minority shareholder redemption liability

19,489

18,402

Other

75,415

58,344

Total liabilities

2,392,243

2,238,256

Company shareholders' equity:

Common stock, $.01 par value per share, 100,000,000 shares authorized;

44,054,042 and 43,470,271 shares issued and outstanding as of

December 31, 2012 and December 31, 2011, respectively

441

435

Additional paid-in capital

932,255

904,968

Retained earnings 

1,017,128

827,297

Shares held in trust

(7,587)

(7,814)

Accumulated other comprehensive income (loss)

8,946

(33,757)

Total Company shareholders' equity

1,951,183

1,691,129

Noncontrolling interest

8,073

3,251

Total equity

1,959,256

1,694,380

Total liabilities and equity

$          4,351,499

$          3,932,636

Please reference attached financial statement notes.

 

 

JONES LANG LASALLE INCORPORATED

Summarized Consolidated Statements of Cash Flows

For the Twelve Months Ended December 31, 2012 and 2011

(in thousands)

(Unaudited)

 

Twelve Months Ended December 31,

2012

2011

Cash provided by operating activities

$           327,698

$            211,338

Cash used in investing activities

(151,252)

(389,316)

Cash (used in) provided by financing activities

(208,741)

110,535

        Net decrease in cash and cash equivalents

$           (32,295)

$             (67,443)

Cash and cash equivalents, beginning of period

184,454

251,897

Cash and cash equivalents, end of period

$          152,159

$            184,454

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 and twelve months ended December 31, 2012, and 2011.

 

<