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Press release from PR Newswire

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

Tuesday, January 29, 2013

Jones Lang LaSalle Reports Full-Year Adjusted Earnings per Share of $5.48; Revenue of $3.9 billion16:30 EST Tuesday, January 29, 2013Record full-year revenue increased 12 percent; fee revenue grew 10 percentCHICAGO, 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 EndedDecember 31,2012201120122011Revenue$    1,249$  1,148$    3,933$  3,585Fee Revenue1$    1,165$  1,081$    3,640$  3,374Adjusted Net Income2$       117$     114$       245$     215U.S. GAAP Net Income$       107$       85$       208$     164Adjusted Earnings per Share2$      2.60$    2.56$      5.48$    4.83Earnings per Share$      2.38$    1.91$      4.63$    3.70Adjusted EBITDA3$       185$     179$       436$     395Adjusted Operating Income Margin114.1%14.6%9.3%9.4%Adjusted EBITDA Margin115.9%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 LCTwelve Months Ended December 31,% Change in LC2012201120122011Real Estate Services ("RES")Leasing$      439.2$      408.78%$   1,277.8$   1,189.19%Capital Markets & Hotels194.4173.212%512.9459.613%Property & Facility Management283.9261.59%1,012.3864.419%Property & Facility Management Fee Revenue1242.4222.79%850.1761.713%Project & Development Services143.2126.715%486.2441.514%Project & Development Services Fee Revenue1101.498.64%355.8333.79%Advisory, Consulting and Other124.8115.68%382.2358.39%     Total RES Revenue$   1,185.5$   1,085.79%$     3,671.4$   3,312.913%Total RES Fee Revenue1$   1,102.2$   1,018.88%$     3,378.8$   3,102.410%LaSalle Investment ManagementAdvisory Fees$        56.2$        60.1(7%)$        228.1$      245.0(6%)Transaction Fees & Other4.62.3104%10.57.347%Incentive Fees2.40.1n/m22.819.318%     Total LaSalle Investment Management Revenue$        63.2$        62.50%$        261.4$      271.6(3%)Total Firm Revenue$   1,248.7$   1,148.29%$     3,932.8$   3,584.512%Total Firm Fee Revenue1$   1,165.4$   1,081.38%$     3,640.2$   3,374.010%n/m ? not meaningfulConsolidated 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 SheetDuring 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 HighlightsAmericas 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 LCTwelve Months Ended  December 31,% Change in LC2012201120122011Leasing$      278.9$     258.68%$       829.6$    760.79%Capital Markets & Hotels59.448.124%168.5135.625%Property & Facility Management133.2117.813%458.7349.732%Property & Facility Management Fee Revenue1111.1101.210%375.0329.315%Project & Development Services51.954.3(4%)182.9178.44%Project & Development Services Fee Revenue151.753.9(3%)182.1177.94%Advisory, Consulting and Other31.530.73%107.098.29%     Operating Revenue$     554.9$     509.59%$    1,746.7$ 1,522.615%Equity Earnings 0.1-n/m-2.7n/mTotal Segment Revenue$     555.0$     509.59%$     1,746.7$ 1,525.315%Total Segment Fee Revenue1$     532.7$     492.59%$    1,662.2$ 1,504.411%n/m ? not meaningfulOperating 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 ServicesEMEA'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 LCTwelve Months Ended December 31,% Change in LC2012201120122011Leasing$    83.7$     81.04%$    250.0$   236.111%Capital Markets & Hotels94.9103.1(9%)235.1229.15%Property & Facility Management42.442.5(1%)155.2147.99%Property & Facility Management Fee Revenue142.442.5(1%)155.2147.99%Project & Development Services64.551.428%219.8182.028%Project & Development Services Fee Revenue130.528.87%106.596.316%Advisory, Consulting and Other66.862.37%189.1178.910%     Operating Revenue$   352.3$   340.34%$ 1,049.2$   974.012%Equity Losses(0.1)-n/m(0.3)(0.3)n/mTotal Segment Revenue$   352.2$   340.34%$ 1,048.9$   973.712%Total Segment Fee Revenue1$   318.2$     317.70%$    935.6$     888.09%n/m ? not meaningfulOperating 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 ServicesAsia 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 LCTwelve Months Ended December 31,% Change in LC2012201120122011Leasing$      76.6$      69.110%$     198.2$     192.34%Capital Markets & Hotels40.122.079%109.394.915%Property & Facility Management108.3101.27%398.4366.810%Property & Facility Management Fee Revenue188.979.012%319.9284.513%Project & Development Services26.821.028%83.581.16%Project & Development Services Fee Revenue119.215.921%67.259.516%Advisory, Consulting and Other26.522.616%86.181.26%     Operating Revenue$     278.3$      235.918%$     875.5$     816.39%Equity Earnings-0.1n/m0.10.2n/mTotal Segment Revenue$     278.3$      236.018%$     875.6$     816.59%Total Segment Fee Revenue1$     251.3$      208.720%$     780.8$     712.611%n/m ? not meaningfulOperating 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 $24 million of equity earnings, primarily from asset sales.  LaSalle Investment   Management RevenueThree Months Ended December 31,% Change in LCTwelve Months Ended  December 31,% Change in LC   ($ in millions, "LC" = local currency)2012201120122011Advisory Fees$    56.2$    60.1(7%)$    228.1$     245.0(6%)Transaction Fees & Other4.62.3104%10.57.347%Incentive Fees2.40.1n/m22.819.318%     Operating Revenue$    63.2$    62.50%$     261.4$     271.6(3%)Equity Earnings1.43.7(62%)24.03.8n/mTotal Segment Revenue$    64.6$    66.2(3%)$     285.4$     275.45%n/m ? not meaningfulAssets 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 048619Statements 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 CallThe 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 instructions3. 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 InformationSupplemental 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 ReplayAvailable: 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:  87480384Web Audio ReplayAudio 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 INCORPORATEDConsolidated Statements of OperationsFor 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 31,2012201120122011Revenue$               1,248,704$               1,148,175$          3,932,830$          3,584,544Operating expenses:Compensation and benefits 794,160722,4692,546,9652,330,520Operating, administrative and other270,501250,173972,231863,860Depreciation and amortization 20,10022,33378,81082,832Restructuring and acquisition charges13,04533,98345,42156,127Total operating expenses1,097,8061,028,9583,643,4273,333,339Operating income150,898119,217289,403251,205Interest expense, net of interest income(10,337)(8,372)(35,173)(35,591)Equity earnings from unconsolidated ventures 1,3583,70323,8576,385Income before income taxes and noncontrolling interest141,919114,548278,087221,999Provision for income taxes  34,65729,52569,24456,387Net income107,26285,023208,843165,612Net income attributable to noncontrolling interest1901077931,228Net income attributable to the Company$                  107,072$                   84,916$             208,050$             164,384Net income attributable to common shareholders$                  106,831$                   84,765$             207,556$             163,997Basic earnings per common share$                       2.43$                       1.95$                  4.73$                  3.80Basic weighted average shares outstanding44,051,01443,469,54343,848,73743,170,383Diluted earnings per common share$                       2.38$                       1.91$                  4.63$                  3.70Diluted weighted average shares outstanding44,953,52444,402,41244,799,43744,367,359EBITDA $                  171,925$                  144,995$             390,783$             338,807Please 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, 2012201120122011 REAL ESTATE SERVICES         AMERICAS  Revenue:  Operating revenue $                      554,867$                      509,478$                    1,746,708$                    1,522,607 Equity earnings (losses)  7416(3)2,682 Total segment revenue 554,941509,4941,746,7051,525,289 Gross contract costs1(22,246)(16,992)(84,425)(20,882) Total segment fee revenue 532,695492,5021,662,2801,504,407 Operating expenses:  Compensation, operating and administrative expenses 468,441415,3771,536,2111,324,115 Depreciation and amortization 11,2059,71042,33338,502 Total segment operating expenses 479,646425,0871,578,5441,362,617 Gross contract costs1(22,246)(16,992)(84,425)(20,882) Total fee-based segment operating expenses 457,400408,0951,494,1191,341,735 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 352,239340,2961,048,916973,710 Gross contract costs1(34,027)(22,555)(113,321)(85,692) Total segment fee revenue 318,212317,741935,595888,018 Operating expenses:  Compensation, operating and administrative expenses 300,805297,278974,022916,412 Depreciation and amortization 5,0019,05121,64429,378 Total segment operating expenses 305,806306,329995,666945,790 Gross contract costs1(34,027)(22,555)(113,321)(85,692) Total fee-based segment operating expenses 271,779283,774882,345860,098 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)28150178 Total segment revenue 278,318235,966875,626816,479 Gross contract costs1(27,044)(27,329)(94,816)(103,892) Total segment fee revenue 251,274208,637780,810712,587 Operating expenses:  Compensation, operating and administrative expenses 241,952207,797797,396738,107 Depreciation and amortization 3,3293,00112,88612,203 Total segment operating expenses 245,281210,798810,282750,310 Gross contract costs1(27,044)(27,329)(94,816)(103,892) Total fee-based segment operating expenses 218,237183,469715,466646,418 Operating income $                        33,037$                        25,168$                        65,344$                        66,169 EBITDA $                        36,366$                        28,169$                        78,230$                        78,372LASALLE INVESTMENT           MANAGEMENT  Revenue:  Operating revenue $                        63,187$                        62,465$                      261,420$                      271,622 Equity earnings 1,3773,65724,0203,829 Total segment revenue 64,56466,122285,440275,451 Operating expenses:  Compensation, operating and administrative expenses 53,46352,191211,567215,745 Depreciation and amortization 5655701,9472,750 Total segment operating expenses 54,02852,761213,514218,495 Operating income $                        10,536$                        13,361$                        71,926$                        56,956 EBITDA $                        11,101$                        13,931$                        73,873$                        59,706 Total segment revenue 1,250,0621,151,8783,956,6873,590,929 Reclassification of equity earnings 1,3583,70323,8576,385      Total revenue $                    1,248,704$                    1,148,175$                    3,932,830$                    3,584,544      Total operating expenses before restructuring charges 1,084,761994,9753,598,0063,277,212      Operating income before restructuring charges $                      163,943$                      153,200$                      334,824$                      307,332Please reference attached financial statement notes.JONES LANG LASALLE INCORPORATEDConsolidated Balance SheetsDecember 31, 2012 and December 31, 2011(in thousands)December 31,December 31,20122011ASSETSCurrent assets:Cash and cash equivalents$             152,159$             184,454Trade receivables, net of allowances996,681907,772Notes and other receivables101,95297,315Warehouse receivables144,257-Prepaid expenses53,16545,274Deferred tax assets50,83153,553Other16,48412,516Total current assets1,515,5291,300,884Property and equipment, net of accumulated depreciation269,338241,415Goodwill, with indefinite useful lives1,853,7611,751,207Identified intangibles, with finite useful lives, net of accumulated amortization45,93252,590Investments in real estate ventures 268,107224,854Long-term receivables58,88154,840Deferred tax assets197,892186,605Other142,059120,241Total assets$          4,351,499$          3,932,636LIABILITIES AND EQUITY Current liabilities:Accounts payable and accrued liabilities$             497,817$             436,045Accrued compensation 685,718655,658Short-term borrowings32,23365,091Deferred tax liabilities10,1136,044Deferred income76,15258,974Deferred business acquisition obligations105,77231,164Warehouse facility144,257-Other109,90995,641Total current liabilities1,661,9711,348,617Noncurrent liabilities:Credit facilities169,000463,000Long-term senior notes275,000-Deferred tax liabilities3,1067,646Deferred compensation75,32057,118Pension liabilities5,28117,233Deferred business acquisition obligations107,661267,896Minority shareholder redemption liability19,48918,402Other75,41558,344Total liabilities2,392,2432,238,256Company shareholders' equity:Common stock, $.01 par value per share, 100,000,000 shares authorized;44,054,042 and 43,470,271 shares issued and outstanding as ofDecember 31, 2012 and December 31, 2011, respectively441435Additional paid-in capital932,255904,968Retained earnings 1,017,128827,297Shares held in trust(7,587)(7,814)Accumulated other comprehensive income (loss)8,946(33,757)Total Company shareholders' equity1,951,1831,691,129Noncontrolling interest8,0733,251Total equity1,959,2561,694,380Total liabilities and equity$          4,351,499$          3,932,636Please reference attached financial statement notes.  JONES LANG LASALLE INCORPORATEDSummarized Consolidated Statements of Cash FlowsFor the Twelve Months Ended December 31, 2012 and 2011(in thousands)(Unaudited) Twelve Months Ended December 31,20122011Cash provided by operating activities$           327,698$            211,338Cash 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 period184,454251,897Cash and cash equivalents, end of period$          152,159$            184,454Please reference attached financial statement notes. JONES LANG LASALLE INCORPORATEDFinancial Statement Notes1. 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. Three Months EndedTwelve Months EndedDecember 31,December 31,($ in millions)2012201120122011Revenue$  1,248.7$  1,148.2$ 3,932.8$  3,584.5Gross contract costs(83.3)(66.9)(292.6)(210.5)Fee revenue$  1,165.4$  1,081.3$ 3,640.2$  3,374.0Operating expenses$  1,097.8$  1,029.0$ 3,643.4$  3,333.3Gross contract costs(83.3)(66.9)(292.6)(210.5)Fee-based operating expenses$  1,014.5$     962.1$ 3,350.8$  3,122.8Operating income$     150.9$     119.2$    289.4$     251.2Add:Restructuring and acquisition charges13.034.045.456.1King Sturge intangible amortization0.64.84.911.5Adjusted operating income$   164.5$     158.0$   339.7$    318.8Adjusted operating income margin14.1%14.6%9.3%9.4% 2.  Charges excluded from GAAP net income attributable to common shareholders to arrive at adjusted net income for the three and twelve months ended December 31, 2012, and December 31, 2011, 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 EndedTwelve Months EndedDecember 31,December 31,($ in millions, except per share data)2012201120122011GAAP net income attributable to common shareholders$106.8$84.8$207.6$164.0Shares (in 000s)44,95444,40244,79944,367GAAP earnings per share$2.38$1.91$4.63$3.70GAAP net income attributable to common shareholders$106.8$84.8$207.6$164.0Restructuring and acquisition charges, net 9.825.234.141.9Intangible amortization, net 0.53.63.78.6Adjusted net income 117.1113.6245.4214.5Shares (in 000s)44,95444,40244,79944,367Adjusted earnings per share$  2.60$  2.56$  5.48$  4.83 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 EndedTwelve Months EndedDecember 31,December 31,2012201120122011Net income attributable to common shareholders$106,831$84,765$207,556$163,997Add:Interest expense, net of interest income10,3378,37235,17335,591Provision for income taxes34,65729,52569,24456,387Depreciation and amortization20,10022,33378,81082,832EBITDA$171,925$144,995$390,783$338,807Add:Restructuring and acquisition charges13,04533,98345,42156,127Adjusted EBITDA$184,970$178,978$436,204$394,9344. 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 Annual Report on Form 10-K for the year ended December 31, 2012, 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.9. Certain prior year amounts have been reclassified to conform to the current presentation.SOURCE Jones Lang LaSalleFor further information: Lauralee Martin, Chief Operating and Financial Officer. +1-312-228-2073