Other News Releases in Banking & Financial Services
Professor Sharath Sury to Award Top Scholar in Ethical Finance and Risk Management at SIFIRM Conference.
DePaul Staffing Ranked as Top Oregon Staffing Firm
22nd Annual Help the Homeless Walkathon Takes Place on the National Mall
Other News Releases in Earnings
Escalon(R) Reports First Quarter Fiscal 2010 Results
Electronic Game Card, Inc. Files 10-Q for Period Ending September 30, 2009
Wolverine Tube Reports 2009 Third Quarter Results
Journalists and Bloggers
Visit PR Newswire for Journalists for releases, photos, ProfNet experts, and customized feeds just for Media.
View and download archived video content distributed by MultiVu on The Digital Center.
See more news releases in: Banking & Financial Services, Real Estate, Commercial Real Estate, Earnings
Jones Lang LaSalle Reports Second Quarter 2009 Results
Adjusted EPS of $0.30 per share and adjusted EBITDA of $49 million, excluding Restructuring and certain non-cash co-investment charges
CHICAGO, Aug. 4 /PRNewswire-FirstCall/ -- Jones Lang LaSalle Incorporated (NYSE: JLL), the leading integrated financial and professional services firm specializing in real estate, today reported a net loss of $14 million on a U.S. GAAP basis, or $0.40 per share, for the quarter ended June 30, 2009. Adjusting for Restructuring and certain non-cash co-investment charges in the second quarter of 2009, net income would have been $11 million, or $0.30 per share. The firm's adjusted earnings before interest, taxes, depreciation and amortization ("adjusted EBITDA") were $49 million for the second quarter of 2009 compared with adjusted EBITDA of $55 million for the same period in 2008.
On a year-to-date basis, the 2009 net loss was $76 million, or $2.15 per share. The year-to-date adjusted net loss would have been $11 million, or $0.31 per share. Adjusted EBITDA on a year-to-date basis was $60 million compared with $77 million for the first half of 2008.
Revenue for the second quarter of 2009 was $576 million, a 13 percent decrease in U.S. dollars, but down only 6 percent in local currency, compared with the second quarter of 2008. Revenue for the first half of 2009 was $1.1 billion, a 13 percent decrease from $1.2 billion in 2008 but down only 5 percent in local currency.
Second-Quarter 2009 Highlights:
- Reported revenue of $576 million, down only 6 percent in local currency despite continued weak market conditions
- Corporate outsourcing drives Management Services growth
- Cost actions generate more than $125 million in annualized base compensation and benefits savings
- Successful equity offering and bank amendment provide improved financial flexibility
- Significant seasonal improvement in adjusted EBITDA
Second-quarter results included $15 million of Restructuring charges as well as $15 million of non-cash co-investment charges. There were $32 million of Restructuring charges and $44 million of non-cash co-investment charges in the first half of 2009. Restructuring charges are primarily severance related but include integration costs from the 2008 acquisitions of The Staubach Company and Kemper's. Restructuring charges are excluded from segment operating results although they are included for consolidated reporting. The non-cash charges are primarily impairments and are included in Equity losses at the consolidated and segment reporting levels.
"During the quarter, we continued to strengthen our balance sheet, reduce costs and align the size of our business to market conditions. At the same time, we have been careful to retain our key revenue-generating teams and have increased our market share in many business areas as a result," said Colin Dyer, Chief Executive Officer of Jones Lang LaSalle. "These actions put us in a strong, stable and confident position to drive growth when markets recover."
Business Line Revenue Comparison for the periods ending June 30, 2009
and 2008:
(in millions, "LC" = local currency)
Three Months Six Months
Ended Ended
------------ % Change ----------- % Change
2009 2008 in LC 2009 2008 in LC
---- ---- ----- ---- ---- ------
Investor and
Occupier Services
-----------------
Leasing $182.8 $160.9 19% $316.1 $289.7 15%
Capital Markets
and Hotels 38.0 82.2 (47%) 65.9 139.7 (45%)
Advisory,
Consulting
and Other 61.9 97.2 (27%) 118.8 181.5 (24%)
---- ---- ----- -----
Total Transaction
Services 282.7 340.3 (10%) 500.8 610.9 (10%)
Property Management,
Facility Management
and Other 150.4 131.6 19% 288.3 253.1 22%
Project & Development
Services 71.4 86.4 (11%) 137.1 161.0 (8%)
---- ---- ----- -----
Total Management
Services 221.8 218.0 7% 425.4 414.1 11%
Other 7.9 9.4 (10%) 14.3 17.1 (8%)
--- --- ---- ----
Total IOS Revenue $512.4 $567.7 (3%) $940.5 $1,042.1 (2%)
LaSalle Investment Management
-----------------------------
Advisory fees $59.4 $72.6 (11%) $119.5 $144.7 (9%)
Transaction and
Incentive fees 4.3 19.2 (79%) 10.4 36.6 (68%)
--- ---- ---- ----
Total Investment
Management $63.7 $91.8 (25%) $129.9 $181.3 (21%)
------ ------ -------- --------
Total Firm
Revenue $576.1 $659.5 (6%) $1,070.4 $1,223.4 (5%)
====== ====== ======== ========
Cost Actions
In the second quarter of 2009, the firm continued actions to reduce staff and eliminate significant discretionary spending. Excluding Restructuring charges, operating expenses were $543 million, compared with $621 million in the second quarter of 2008. On a local currency basis, operating expenses excluding Restructuring charges were down 6 percent for the quarter. Operating expenses for the first six months were down 3 percent compared with last year despite the added cost structure from the five acquisitions completed since the second quarter of 2008, including Staubach. The firm continues its cost discipline and expects to realize over $125 million in annualized compensation and benefits savings from its restructuring actions.
On a year-to-date basis, operating expenses excluding Restructuring charges were $1.0 billion in 2009, compared with $1.2 billion for the first half of 2008.
Balance Sheet
During the second quarter, the firm issued 6.5 million shares in a common stock offering for $218 million in net proceeds and, simultaneously, amended its credit facilities for increased financial and operational flexibility. The proceeds from the stock offering were used to repay debt on the firm's credit facilities. The outstanding balance on these facilities was $398 million at the end of the second quarter, and the firm was well within its covenant limits. The firm continues to aggressively manage its balance sheet position with significant reductions in capital expenditures, acquisitions and dividend payments in 2009 compared with 2008.
Business Segment Second-Quarter Performance Highlights
Investor and Occupier Services
Second-quarter revenue in the Americas region was $249 million, an increase of 31 percent over the prior year, primarily as a result of the Staubach acquisition, and an increase of 25 percent over the first quarter of 2009 due to improved seasonal performance. Revenue for the first half of 2009 was $448 million, compared with $364 million in the first half of 2008.
Transaction Services revenue increased 59 percent in the second quarter, to $140 million, and 47 percent year to date, to $246 million. The region's total Leasing revenue more than doubled in the quarter, to $123 million, up from $60 million in 2008, and increased 78 percent to $209 million in the first half. Management Services revenue for the second quarter of 2009 increased 7 percent, to $105 million, with new corporate outsourcing wins being partially offset by reductions in Project & Development Services as clients continue to reduce capital expenditures. Management Services for the first six months of 2009 increased 4 percent, to $196 million.
Operating expenses were $230 million in the second quarter of 2009, an increase of 28 percent over the same period of 2008. The year-over-year increase was due to additional cost structure from the Staubach acquisition, including $3 million of non-cash amortization expense related to purchased intangible assets. Year-to-date operating expenses were $434 million, including $10 million of non-cash amortization from the Staubach acquisition, compared with $353 million for the first half of 2008.
The region's EBITDA for the second quarter of 2009 was $31 million compared with $18 million in the second quarter of 2008.
EMEA's second-quarter 2009 revenue was $143 million compared with $236 million in 2008, a decrease of 39 percent, 28 percent in local currency, driven by continued reductions in transaction volumes across the region. Revenue increased 18 percent over the first quarter of 2009 due to improved seasonal performance. Revenue on a year-to-date basis was $264 million, compared with $419 million for the first half of 2008. On a U.S. dollar basis, the decreases were driven by Capital Markets and Hotels, down $28 million in the second quarter, and $54 million year to date, and Leasing revenue, down $28 million for the quarter and $43 million year to date. Capital Markets and Hotels revenue was down 47 percent in local currency for the quarter and 50 percent on a year-to-date basis. Leasing was down 32 percent in local currency for the quarter and 27 percent for the first half of 2009. Management Services revenue, which is primarily annuity revenue, decreased 17 percent for the quarter but only 1 percent in local currency. For the first half of 2009, Management Services revenue was $94 million, compared with $107 million for the same period in 2008, but was up 6 percent in local currency.
Operating expenses were $144 million in the second quarter, $286 million year to date, decreases of 39 and 33 percent, respectively, from the prior year. In local currency, the quarterly and year-to-date decreases were 27 percent and 18 percent, respectively. Cost reductions were the result of aggressive actions taken across the region and achieved despite the additional cost structure from two acquisitions completed since the second quarter of 2008.
The region's EBITDA for the second quarter of 2009 was $4 million compared with $9 million in the second quarter of 2008.
Revenue for the Asia Pacific region was $119 million for the second quarter of 2009, compared with $142 million for the same period in 2008. Revenue increased 14 percent from the first quarter of 2009 due to improved seasonal performance. On a year-to-date basis, revenue was $224 million in 2009 compared with $259 million in 2008. Excluding the impact of foreign currency exchange, revenue was down 8 percent in the quarter and 4 percent year to date compared with 2008.
Management Services revenue in the region increased to $68 million, an 11 percent increase from the second quarter of 2008 and 19 percent in local currency. On a year-to-date basis, Management Services revenue increased 14 percent, 24 percent in local currency. The significant year-over-year increase demonstrates the firm's continued strength in corporate outsourcing, facility management and property management. Transaction Services revenue was $51 million for the quarter, a 35 percent decrease from 2008, 27 percent in local currency. Transaction Services revenue decreased 35 percent for the first half of the year, 26 percent in local currency, to $88 million. Within Transaction Services revenue, Capital Markets and Hotels revenue was down 25 percent in local currency in the quarter and 21 percent year to date. Leasing revenue was down 30 percent in local currency for the quarter and 27 percent in local currency year to date.
Operating expenses for the region were $117 million for the second quarter, $225 million for the first half of 2009. With an aggressive focus on costs, operating expenses decreased 15 percent for the quarter, 7 percent in local currency, and 14 percent for the first half, 4 percent in local currency. The decreases were achieved despite incremental costs related to serving more corporate outsourcing clients and higher occupancy costs compared with the same periods of 2008.
The region's EBITDA for the second quarter of 2009 was $6 million compared with $8 million in the second quarter of 2008.
LaSalle Investment Management
LaSalle Investment Management's second-quarter revenue was $46 million, compared with $93 million in the prior year. On a year-to-date basis, revenue was $83 million compared with $180 million in the first half of 2008. Equity losses of $18 million and $47 million, primarily from non-cash charges related to co-investments, were included in second-quarter and first-half 2009 revenue, respectively. Advisory fees were $59 million in the quarter, down $13 million from the second quarter of 2008, 11 percent in local currency. Second-quarter 2009 Advisory fees compared favorably with Advisory fees of $60 million in the first quarter of 2009 despite the challenging operating environment.
The business recognized $3 million of Incentive fees in the second quarter of 2009 as a result of liquidating mature funds, and $8 million in the first half of the year, primarily as a result of reaching specified performance objectives against established benchmarks. Asset sales, a key driver of Incentive and Transaction fees, continued to be limited by the availability of financing.
LaSalle Investment Management raised $1.1 billion of equity from clients during the second quarter of 2009, $1.6 billion year to date, and assets under management were $36.3 billion. Investments made on behalf of clients totalled $300 million and $600 million for the second quarter and first half of 2009, respectively.
Summary
The firm has continued to focus on cost reductions to maximize operating results in the midst of the sustained global economic downturn. New wins in the firm's Corporate Solutions business and the ability to grow share in many markets contributed to improved seasonal performance in the second quarter. The firm's successes in improving its financial position will provide greater operating flexibility to emerge stronger from the current economic environment.
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, 2008, and in the Quarterly Report on Form 10-Q for the quarter ended March 31, 2009, and in other reports filed with the Securities and Exchange Commission. Statements speak only as of the date of this release. Jones Lang LaSalle expressly disclaims any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect any change in Jones Lang LaSalle's expectations or results, or any change in events.
About Jones Lang LaSalle
Jones Lang LaSalle (NYSE: JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2008 global revenue of $2.7 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 1.4 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 over $36 billion of assets under management. For further information, please visit our Web site, www.joneslanglasalle.com.
200 East Randolph Drive Chicago Illinois 60601 | 22 Hanover Square London W1A 2BN | 9 Raffles Place #39-00 Republic Plaza Singapore 048619
Conference Call
The firm will conduct a conference call for shareholders, analysts and investment professionals on Wednesday, August 5 at 9:00 a.m. EDT.
To participate in the teleconference, please dial into one of the following phone numbers five to 10 minutes before the start time:
* U.S. callers: +1 877 809 9540
* International callers: +1 706 679 7364
* Pass code: 19563437
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=60349 and follow instructions
3. Download free Windows Media Player software: (link located under registration form)
4. If you experience problems listening, send an e-mail to prnwebcast@multivu.com
Supplemental Information
Supplemental information regarding the second quarter 2009 earnings call has been posted to the Investor Relations section of the company's Web site: www.joneslanglasalle.com.
Conference Call Replay
Available: 12:00 p.m. EDT Wednesday, August 5 through 11:59 p.m. EDT Wednesday, August 12 at the following numbers:
* U.S. callers: +1 800 642 1687
* International callers: +1 706 645 9291
* Pass code: 19563437
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 Web site: www.joneslanglasalle.com.
If you have any questions, call Yvonne Peterson of Jones Lang LaSalle's Investor Relations department at +1 312 228 2919.
JONES LANG LASALLE INCORPORATED
Consolidated Statements of Operations
For the Three and Six Months Ended June 30, 2009 and 2008
(in thousands, except share data)
(Unaudited)
Three Months Six Months
Ended June 30, Ended June 30,
-------------- ---------------
2009 2008 2009 2008
---- ---- ---- ----
Revenue $576,138 $659,515 $1,070,350 $1,223,435
Operating expenses:
Compensation
and benefits 381,376 431,175 723,931 810,047
Operating,
administrative
and other 140,653 171,875 278,276 332,741
Depreciation
and
amortization 21,367 18,268 45,887 34,714
Restructuring
charges
(credits) 15,386 - 32,428 (188)
------ ------ ------ ----
Total
operating
expenses 558,782 621,318 1,080,522 1,177,314
------- ------- --------- ---------
Operating
income
(loss) 17,356 38,197 (10,172) 46,121
Interest expense,
net of interest
income 14,528 3,560 27,286 4,736
Equity in (losses)
earnings from
unconsolidated
ventures (19,248) 969 (51,271) (1,244)
------- --- ------- ------
(Loss) income
before income
taxes and
noncontrolling
interest (16,420) 35,606 (88,729) 40,141
(Benefit) provision
for income taxes (2,463) 8,973 (13,310) 10,116
------ ----- ------- ------
Net (loss) income (13,957) 26,633 (75,419) 30,025
Net income
attributable
to noncontrolling
interest 190 1,114 202 1,666
--- ----- --- -----
Net (loss) income
attributable
to the Company $(14,147) $25,519 $(75,621) $28,359
-------- ------- -------- -------
Net (loss)
income
attributable
to common
shareholders $(14,433) $24,516 $(75,907) $27,356
-------- ------- -------- -------
Basic (loss)
earnings per
common share $(0.40) $0.77 $(2.15) $0.86
------ ----- ------ -----
Basic weighted
average shares
outstanding 35,835,788 31,876,045 35,231,252 31,824,435
---------- ---------- ---------- ----------
Diluted (loss)
earnings per
common share $(0.40) $0.73 $(2.15) $0.82
------ ----- ------ -----
Diluted
weighted
average shares
outstanding 35,835,788 33,458,081 35,231,252 33,340,225
---------- ---------- ---------- ----------
EBITDA $18,999 $55,317 $(16,044) $76,922
------- ------- -------- -------
Please reference attached financial statement notes.
JONES LANG LASALLE INCORPORATED
Segment Operating Results
For the Three and Six Months Ended June 30, 2009 and 2008
(in thousands)
(Unaudited)
Three Months Six Months
Ended June 30, Ended June 30,
-------------- --------------
2009 2008 2009 2008
---- ---- ---- ----
INVESTOR & OCCUPIER
SERVICES
AMERICAS
Revenue:
Transaction
services $139,803 $88,065 $246,410 $167,424
Management
services 104,584 97,516 196,161 188,299
Equity income
(losses) 233 41 (1,211) 41
Other services 3,967 4,253 6,818 7,973
----- ----- ----- -----
248,587 189,875 448,178 363,737
Operating expenses:
Compensation,
operating and
administrative
expenses 217,416 171,825 405,575 338,394
Depreciation and
amortization 12,523 7,494 28,439 14,542
------ ----- ------ ------
229,939 179,319 434,014 352,936
------- ------- ------- -------
Operating income $18,648 $10,556 $14,164 $10,801
======= ======= ======= =======
EBITDA $31,171 $18,050 $42,603 $25,343
------- ------- ------- -------
EMEA
Revenue:
Transaction
services $92,230 $174,456 $165,960 $306,872
Management
services 49,203 59,027 94,479 107,204
Equity (losses)
income (580) 85 (959) 102
Other services 2,018 2,530 4,151 4,985
----- ----- ----- -----
142,871 236,098 263,631 419,163
Operating expenses:
Compensation,
operating and
administrative
expenses 138,374 226,900 275,316 410,960
Depreciation and
amortization 5,234 6,866 10,376 12,886
----- ----- ------ ------
143,608 233,766 285,692 423,846
----- ------ -------- -------
Operating (loss) income $(737) $2,332 $(22,061) $(4,683)
===== ====== ======== =======
EBITDA $4,497 $9,198 $(11,685) $8,203
------ ------ -------- ------
ASIA PACIFIC
Revenue:
Transaction
services $50,690 $77,748 $88,380 $136,630
Management
services 68,053 61,444 134,794 118,518
Equity losses (1,401) (88) (2,372) (150)
Other services 1,928 2,674 3,299 4,178
----- ----- ----- -----
119,270 141,778 224,101 259,176
Operating expenses:
Compensation,
operating and
administrative
expenses 113,535 133,553 219,053 255,961
Depreciation and
amortization 3,072 3,451 5,993 6,328
----- ----- ----- -----
116,607 137,004 225,046 262,289
------ ------ ----- -------
Operating income
(loss) $2,663 $4,774 $(945) $(3,113)
====== ====== ===== =======
EBITDA $5,735 $8,225 $5,048 $3,215
------ ------ ------ ------
LASALLE INVESTMENT
MANAGEMENT
Revenue:
Transaction and
other services $899 $6,214 $2,097 $10,439
Advisory fees 59,386 72,552 119,458 144,683
Incentive fees 3,377 13,036 8,343 26,230
Equity (losses)
income (17,500) 931 (46,729) (1,237)
------- --- ------- ------
46,162 92,733 83,169 180,115
Operating expenses:
Compensation,
operating and
administrative
expenses 52,704 70,772 102,263 137,474
Depreciation and
amortization 538 457 1,079 957
--- --- ----- ---
53,242 71,229 103,342 138,431
------- ------- -------- -------
Operating (loss)
income $(7,080) $21,504 $(20,173) $41,684
======= ======= ======== =======
EBITDA $(6,542) $21,961 $(19,094) $42,641
------- ------- -------- -------
--------------------------------------------------------------------
Total segment
revenue 556,890 660,484 1,019,079 1,222,191
Reclassification
of equity
(losses) income (19,248) 969 (51,271) (1,244)
------- --- ------- ------
Total revenue $576,138 $659,515 $1,070,350 $1,223,435
======== ======== ========== ==========
Total operating
expenses
before
restructuring
charges
(credits) 543,396 621,318 1,048,094 1,177,502
-------- ------- --------- ---------
Operating income
before
restructuring
charges
(credits) $32,742 $38,197 $22,256 $45,933
======= ======= ======= =======
Please reference attached financial statement notes.
JONES LANG LASALLE INCORPORATED
Consolidated Balance Sheets
June 30, 2009, December 31, 2008, and June 30, 2008
(in thousands)
(Unaudited)
June 30, June 30,
2009 December 31, 2008
(Unaudited) 2008 (Unaudited)
----------- ---- -----------
ASSETS
------
Current assets:
Cash and cash equivalents $44,324 $45,893 $67,650
Trade receivables, net of
allowances 592,782 718,804 665,137
Notes and other receivables 84,147 89,636 65,155
Prepaid expenses 37,700 32,990 39,017
Deferred tax assets 124,246 102,934 89,281
Other 6,824 9,511 22,857
----- ----- ------
Total current assets 890,023 999,768 949,097
Property and equipment, net of
accumulated depreciation 221,787 224,845 220,174
Goodwill, with indefinite
useful lives 1,482,067 1,448,663 865,184
Identified intangibles, with
finite useful lives, net of
accumulated amortization 42,897 59,319 44,663
Investments in real estate
ventures 152,458 179,875 177,399
Long-term receivables 51,606 51,974 46,927
Deferred tax assets 72,256 58,639 52,578
Other 67,703 53,942 55,740
------ ------ ------
Total assets $2,980,797 $3,077,025 $2,411,762
========== ========== ==========
LIABILITIES AND EQUITY
-----------------------
Current liabilities:
Accounts payable and accrued
liabilities $309,557 $352,489 $254,221
Accrued compensation 266,717 487,895 290,533
Short-term borrowings 40,212 24,570 23,288
Deferred tax liabilities 3,546 2,698 4,997
Deferred income 30,121 29,213 30,364
Deferred business acquisition
obligations 26,436 13,073 45,168
Other 86,206 77,947 73,354
------ ------ ------
Total current liabilities 762,795 987,885 721,925
Noncurrent liabilities:
Credit facilities 398,072 483,942 441,529
Deferred tax liabilities 4,349 4,429 1,470
Deferred compensation 32,061 44,888 40,718
Pension liabilities 4,244 4,101 1,101
Deferred business acquisition
obligations 361,948 371,636 34,384
Minority shareholder
redemption liability 44,251 43,313 -
Other 78,656 65,026 53,237
------ ------ ------
Total liabilities 1,686,376 2,005,220 1,294,364
Company shareholders' equity:
Common stock, $.01 par value
per share, 100,000,000 shares
authorized; 41,289,913,
34,561,648 and 31,929,669
shares issued and outstanding
as of June 30, 2009,
December 31, 2008 and June 30,
2008, respectively 413 346 319
Additional paid-in capital 845,210 599,742 476,312
Retained earnings 463,883 543,318 495,908
Shares held in trust (3,513) (3,504) (1,980)
Accumulated other comprehensive
(loss) income (15,330) (72,220) 136,900
------- ------- -------
Total Company shareholders'
equity 1,290,663 1,067,682 1,107,459
Noncontrolling interest 3,758 4,123 9,939
----- ----- -----
Total equity 1,294,421 1,071,805 1,117,398
---------- ---------- ----------
Total liabilities and
equity $2,980,797 $3,077,025 $2,411,762
========== ========== ==========
Please reference attached financial statement notes.
JONES LANG LASALLE INCORPORATED
Summarized Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 2009 and 2008
(in thousands)
(Unaudited)
Six Months Ended June 30,
-------------------------
2009 2008
---- ----
Cash used in operating activities $(85,861) $(173,205)
Cash used in investing activities (49,645) (242,671)
Cash provided by financing
activities 133,937 404,946
------- -------
Net decrease in cash and cash
equivalents (1,569) (10,930)
Cash and cash equivalents,
beginning of period 45,893 78,580
------- -------
Cash and cash equivalents, end of
period $44,324 $67,650
======= =======
Please reference attached financial statement notes.
JONES LANG LASALLE INCORPORATED
Financial Statement Notes
1. Charges excluded from GAAP net loss to arrive at adjusted net loss for the three and six months ended June 30, 2009, are integration costs related to the Staubach and Kemper's acquisitions completed in 2008, severance costs and non-cash charges related to co-investments.
Below are reconciliations of GAAP net loss to adjusted net income (loss) and calculations of earnings (loss) per share ("EPS"), for each net income (loss) total (in millions after tax, except per share):
Three Months Six Months
Ended Ended
June 30, 2009 June 30, 2009
------------- -------------
GAAP net loss $(14.4) $(75.9)
Shares (in 000's) 35,836 35,231
------ ------
Earnings (loss) per share $(0.40) $(2.15)
====== ======
GAAP net loss $(14.4) $(75.9)
Restructuring, net of tax 13.1 27.6
Non-cash co-investment charges,
net of tax 12.7 37.2
---- ----
Adjusted net income (loss) $11.4 $(11.1)
Shares (in 000's) 37,652 35,231
------ ------
Adjusted earnings (loss) per share $0.30 $(0.31)
===== ======
Dilutive shares outstanding are used in the calculation of quarter-to-date adjusted EPS. Basic shares outstanding are used in the calculations of quarter-to-date GAAP EPS and year-to-date GAAP and adjusted EPS, as use of dilutive shares outstanding in those calculations would be anti-dilutive.
2. EBITDA represents earnings before interest expense, net of interest income, income taxes, depreciation and amortization. Although EBITDA is a non-GAAP financial measure, it is used extensively by management and is useful to investors as one of the primary metrics for evaluating operating performance and liquidity. The firm believes that EBITDA is an indicator 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, EBITDA should not be considered as an alternative either to net income or net cash provided by operating activities, both of which are determined in accordance with GAAP. Because EBITDA is not calculated under GAAP, the firm's EBITDA may not be comparable to similarly titled measures used by other companies.
Below is a reconciliation of net (loss) income to EBITDA and adjusted EBITDA (in thousands):
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
2009 2008 2009 2008
---- ---- ---- ----
Net (loss) income $(14,433) $24,516 $(75,907) $27,356
Add (deduct):
Interest expense, net of
interest income 14,528 3,560 27,286 4,736
(Benefit) provision for
income taxes (2,463) 8,973 (13,310) 10,116
Depreciation and amortization 21,367 18,268 45,887 34,714
------ ------ ------ ------
EBITDA $18,999 $55,317 $(16,044) $76,922
======= ======= ======== =======
Add:
Non-cash co-investment
charges 14,915 - 43,847 -
Restructuring 15,386 - 32,428 -
------ ------ ------ ------
Adjusted EBITDA $49,300 $55,317 $60,231 $76,922
======= ======= ======= =======
Below is a reconciliation of net cash used in operating activities, the most comparable cash flow measure on the consolidated statements of cash flows, to EBITDA and adjusted EBITDA (in thousands):
Three Months Six Months
Ended Ended
June 30, June 30,
-------- --------
2009 2008 2009 2008
---- ---- ---- ----
Net cash (used in)
provided by operating
activities $(81,995) $98,645 $(85,861) $(173,205)
Add (deduct):
Interest expense,
net of interest
income 14,528 3,560 27,286 4,736
Change in working
capital and non-cash
expenses 88,929 (55,861) 55,841 235,275
(Benefit) provision
for income taxes (2,463) 8,973 (13,310) 10,116
------- ----- -------- ------
EBITDA $18,999 $55,317 $(16,044) $76,922
======= ======= ======== =======
Add:
Non-cash co-investment
charges 14,915 - 43,847 -
Restructuring 15,386 - 32,428 -
------ ------- ------ -------
Adjusted EBITDA $49,300 $55,317 $60,231 $76,922
======= ======= ======= =======
3. For purposes of segment operating results, the allocation of restructuring charges to our segments has been determined to not be meaningful to investors, so the performance of segment results has been evaluated without these charges being allocated.
4. Each geographic region offers our full range of Investor Services, Capital Markets and Occupier Services. The IOS business consists primarily of tenant representation and agency leasing, capital markets and valuation services (collectively "transaction services") and property management, facilities management, project and development management, energy management and sustainability, and construction management services (collectively "management services"). The Investment Management segment provides investment management services to institutional investors and high-net-worth individuals.
5. The consolidated statements of cash flows are presented in summarized form. For complete consolidated statements of cash flows, please refer to the firm's Quarterly Report on Form 10-Q for the quarter ended June 30, 2009, to be filed with the Securities and Exchange Commission shortly.
6. EMEA refers to Europe, Middle East, and Africa.
7. Certain prior year amounts have been reclassified to conform to the current presentation.
SOURCE Jones Lang LaSalle Incorporated