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Press release from PR Newswire

Jones Lang LaSalle Reports Full-Year Adjusted Earnings per Share of $6.32, Up 15 Percent Over Last Year

Tuesday, January 28, 2014

Jones Lang LaSalle Reports Full-Year Adjusted Earnings per Share of $6.32, Up 15 Percent Over Last Year

16:15 EST Tuesday, January 28, 2014

Full-year fee revenue of $4.0 billion, up 12 percent over last year

CHICAGO, Jan. 28, 2014 /PRNewswire/ -- Jones Lang LaSalle Incorporated (NYSE: JLL) today reported adjusted earnings per share ("EPS") of $6.32 for 2013, up from $5.48 in the prior year.  Full-year fee revenue of $4.0 billion was up 12 percent. All percentage variances are calculated on a local currency basis.

  • Strong fee revenue growth, led by Capital Markets & Hotels and Property & Facility Management; improved momentum in Leasing
  • Ongoing business investments generate market share gains and profitable growth
  • Productivity gains and cost discipline drive margin improvement
  • Robust capital raise by LaSalle Investment Management: $7.0 billion committed in 2013
  • Net debt reduced by $101 million during the year

Summary Financial Results

   ($ in millions, except per share data)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2013

2012

2013

2012

Revenue

$ 1,509

$ 1,249

$  4,462

$  3,933

Fee Revenue1

$ 1,349

$ 1,165

$  4,027

$  3,640

Adjusted Net Income2

$    150

$    117

$     285

$     245

U.S. GAAP Net Income

$    147

$    107

$     269

$     208

Adjusted Earnings per Share2

$   3.33

$   2.60

$    6.32

$    5.48

Earnings per Share

$   3.26

$   2.38

$    5.98

$    4.63

Adjusted EBITDA3

$    230

$    185

$     498

$     437

     Adjusted EBITDA, Real Estate Services

$    211

$    174

$     428

$     363

     Adjusted EBITDA, LaSalle Investment Management

$      19

$      11

$       70

$       74

See Financial Statement Notes (1), (2) and (3) following the Financial Statements in this news release

"Strong fourth-quarter revenue and profits capped a very successful 2013 for our firm," said Colin Dyer, President and Chief Executive Officer of Jones Lang LaSalle. "In 2014, we will continue to focus on serving our clients, improving margins, winning market share and investing in future profitable growth," 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

2013

2012

2013

2012

Real Estate Services ("RES")

Leasing

$     468.8

$ 439.2

8%

$    1,329.7

$   1,277.8

5%

Capital Markets & Hotels

266.7

194.4

38%

708.4

512.9

40%

Property & Facility Management Fee Revenue1

290.7

242.4

23%

947.7

850.1

14%

Property & Facility Management

386.2

283.9

40%

1,199.5

1,012.3

22%

Project & Development Services Fee Revenue1

114.2

101.4

14%

372.4

355.8

6%

Project & Development Services

178.6

143.2

25%

555.4

486.2

15%

Advisory, Consulting and Other

142.8

124.8

15%

413.9

382.2

9%

Total RES Fee Revenue1

$  1,283.2

$ 1,102.2

15%

$  3,772.1

$ 3,378.8

12%

Total RES Revenue

$    1,443.1

$   1,185.5

23%

$    4,206.9

$   3,671.4

16%

LaSalle Investment Management

Advisory Fees

$       56.0

$    56.2

1%

$     223.0

$    228.1

(1%)

Transaction Fees & Other

7.2

4.6

61%

18.1

10.5

76%

Incentive Fees

3.1

2.4

29%

13.6

22.8

(40%)

     Total LaSalle Investment Management

     Revenue

$       66.3

$    63.2

6%

$     254.7

$    261.4

(1%)

Total Firm Fee Revenue1

$  1,349.5

$ 1,165.4

17%

$  4,026.8

$ 3,640.2

12%

Total Firm Revenue

$    1,509.4

$   1,248.7

22%

$    4,461.6

$   3,932.8

15%

Consolidated Performance Highlights:

  • Consolidated fee revenue was $4.0 billion for 2013, 12 percent higher than 2012. Growth was driven by a 40 percent fee revenue increase in Capital Markets & Hotels and a 14 percent fee revenue increase in Property & Facility Management. Fourth-quarter fee revenue was $1.3 billion, an increase of 17 percent from last year.
  • Fee revenue growth was broad-based in 2013, with double-digit growth in all three geographic segments.
  • In BRIC countries, China, Russia and India are stabilizing or improving while Brazil continues to be challenged, particularly in its leasing markets.
  • Consolidated fee-based operating expenses, excluding restructuring and acquisition charges, were $3.6 billion for the year, compared with $3.3 billion last year, an increase of 11 percent. Fourth-quarter consolidated fee-based operating expenses, excluding restructuring and acquisition charges, were $1.2 billion, up 16 percent from last year.
  • Adjusted operating income margin calculated on a fee revenue basis was 9.7 percent for the year compared with 9.3 percent last year. This increase represents 12.8 percent incremental margin to fee revenue for the year and 19.3 percent incremental margin to fee revenue for the fourth quarter.

Balance Sheet and Net Interest Expense:

  • The firm reduced total net debt to $437 million from $538 million last year.  This is the second consecutive year that the firm has reduced debt by more than $100 million while continuing to invest in the business.
  • In October 2013, the firm renewed its long-term bank credit facility and increased the size to $1.2 billion from $1.1 billion.  The renewed facility has initial pricing at LIBOR + 1.25 percent, down from LIBOR + 1.625 percent, and an extended maturity of October 2018.
  • Net interest expense for 2013 was $34.7 million, down from $35.2 million in 2012.

Business Segment Performance Highlights

Americas Real Estate Services

Americas Revenue

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

Three Months Ended December 31,

% Change in LC

Twelve Months Ended December 31,

% Change in LC

2013

2012

2013

2012

Leasing

$   296.7

$  278.9

7%

$   879.3

$  829.6

6%

Capital Markets & Hotels

78.6

59.4

32%

217.3

168.5

29%

Property & Facility Management Fee Revenue1

133.5

107.4

25%

407.5

358.8

14%

Property & Facility Management

169.8

127.6

35%

518.4

435.0

20%

Project & Development Services Fee Revenue1

59.3

51.7

16%

187.7

182.1

4%

Project & Development Services

59.6

51.9

16%

188.9

182.9

4%

Advisory, Consulting and Other

36.3

31.6

15%

114.2

107.0

7%

     Operating Revenue

$   604.4

$  529.0

15%

$ 1,806.0

$ 1,646.0

10%

Equity Earnings

0.3

0.1

n/m

0.5

0.0

n/m

Total Segment Fee Revenue1

$   604.7

$  529.1

15%

$ 1,806.5

$ 1,646.0

10%

     Total Segment Revenue

$     641.3

$    549.5

17%

$   1,918.6

$  1,723.0

12%

n/m ? not meaningful

Americas Performance Highlights:

  • Full-year fee revenue was $1.8 billion, an increase of 10 percent from 2012. The largest growth was in Capital Markets & Hotels, which increased 29 percent on a fee revenue basis and significantly outpaced broader market volumes. Property & Facility Management fee revenue increased 14 percent on a fee revenue basis due to new wins and acquisitions. Fourth-quarter fee revenue was $605 million, an increase of 15 percent from last year.
  • Fee-based operating expenses, excluding restructuring and acquisition charges, were $1.6 billion for the year, up 10 percent from last year. Fourth-quarter fee-based operating expenses, excluding restructuring and acquisition charges, were $516 million, up 14 percent from last year.
  • Operating income was $184 million for the year, compared with $167 million in 2012.  Operating income margin calculated on a fee revenue basis was 10.2 percent for the full year 2013, consistent with last year, and 14.7 percent in the fourth quarter, up 60 basis points over the fourth quarter of 2012.

EMEA Real Estate Services

EMEA Revenue

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

Three Months Ended December 31,

% Change in LC

Twelve Months Ended December 31,

% Change in LC

2013

2012

2013

2012

Leasing

$   103.6

$  83.7

21%

$   271.5

$  250.0

7%

Capital Markets & Hotels

129.1

94.9

33%

333.3

235.1

41%

Property & Facility Management Fee Revenue1

61.1

46.1

31%

192.6

171.4

12%

Property & Facility Management

87.9

48.0

82%

240.4

178.9

34%

Project & Development Services Fee Revenue1

36.3

30.5

16%

117.4

106.5

9%

Project & Development Services

93.7

64.5

40%

274.2

219.8

22%

Advisory, Consulting and Other

77.5

66.7

14%

203.7

189.1

8%

     Operating Revenue

$   407.6

$  321.9

24%

$ 1,118.5

$  952.1

17%

Equity Earnings

0.0

(0.1)

n/m

(0.5)

(0.3)

67%

Total Segment Fee Revenue1

$   407.6

$  321.8

24%

$ 1,118.0

$  951.8

17%

     Total Segment Revenue

$     491.8

$   357.7

35%

$   1,322.6

$ 1,072.6

22%

n/m ? not meaningful

EMEA Performance Highlights:

  • Full-year fee revenue was $1.1 billion, an increase of 17 percent from 2012. The increase was driven by growth in Capital Markets & Hotels, which increased 41 percent on a fee revenue basis.  Fourth-quarter fee revenue was $408 million, an increase of 24 percent from last year, with double-digit revenue growth in all service lines.  Revenue growth was broad-based for the quarter and the year, led by the UK, Germany, France, Russia and the Netherlands.
  • Fee-based operating expenses, excluding restructuring and acquisition charges, were $1.0 billion for the year, up 14 percent from last year.  Fourth-quarter fee-based operating expenses, excluding restructuring and acquisition charges, were $348 million, up 24 percent from last year.
  • Adjusted operating income, which excludes King Sturge amortization, was $92 million for the year, compared with $59 million in 2012.  Adjusted operating income margin calculated on a fee revenue basis was 8.2 percent compared with 6.2 percent last year.

Asia Pacific Real Estate Services 

Asia Pacific Revenue

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

Three Months Ended December 31,

% Change in LC

Twelve Months Ended December 31,

% Change in LC

2013

2012

2013

2012

Leasing

$   68.5

$  76.6

(4%)

$   178.9

$  198.2

(6%)

Capital Markets & Hotels

59.0

40.1

59%

157.8

109.3

53%

Property & Facility Management Fee Revenue1

96.1

88.9

17%

347.6

319.9

15%

Property & Facility Management

128.5

108.3

28%

440.7

398.4

18%

Project & Development Services Fee Revenue1

18.6

19.2

6%

67.3

67.2

6%

Project & Development Services

25.3

26.8

5%

92.3

83.5

19%

Advisory, Consulting and Other

29.0

26.5

15%

96.0

86.1

15%

     Operating Revenue

$   271.2

$  251.3

16%

$   847.6

$  780.7

14%

Equity Earnings

0.1

0.0

n/m

0.1

0.1

n/m

Total Segment Fee Revenue1

$   271.3

$  251.3

16%

$   847.7

$  780.8

14%

     Total Segment Revenue

$     310.4

$  278.3

20%

$     965.8

$   875.6

17%

n/m ? not meaningful

Asia Pacific Performance Highlights:

  • Full-year fee revenue was $848 million, an increase of 14 percent from 2012.  Property & Facility Management fee revenue was up 15 percent from continued market share gains, and Capital Markets & Hotels also demonstrated strong performance above market volumes.  Leasing revenue decreased from last year as corporate clients in many Asia Pacific markets remained hesitant to make new commitments.  Fourth-quarter fee revenue was $271 million, an increase of 16 percent from last year.  Revenue growth for the quarter and the year was led by Greater China geographically, but also was broad-based across the region's Property & Facility Management platform.
  • Fee-based operating expenses, excluding restructuring and acquisition charges, were $770 million for the year, up 13 percent from last year.  Fourth-quarter fee-based operating expenses, excluding restructuring and acquisition charges, were $229 million, up 12 percent from last year.
  • Operating income was $77 million for the year, compared with $65 million in 2012.  Operating income margin calculated on a fee revenue basis was 9.1 percent, compared with 8.4 percent last year.

LaSalle Investment Management

LaSalle Investment

Management Revenue

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

Three Months

Ended December 31,

% Change in

LC

Twelve Months

Ended December 31,

% Change in

LC

2013

2012

2013

2012

Advisory Fees

$   56.0

$  56.2

1%

$   223.0

$  228.1

(1%)

Transaction Fees & Other

7.2

4.6

61%

18.1

10.5

76%

Incentive Fees

3.1

2.4

29%

13.6

22.8

(40%)

     Operating Revenue

$   66.3

$  63.2

6%

$   254.7

$  261.4

(1%)

Equity Earnings

9.8

1.4

n/m

31.2

24.0

30%

Total Segment Revenue

$   76.1

$  64.6

20%

$   285.9

$  285.4

2%

n/m ? not meaningful

LaSalle Investment Management Performance Highlights:

  • Advisory fees were $223 million for the year, a slight decrease from last year, resulting from new mandates and fund closings that were offset by portfolio sales at attractive valuations for LaSalle's investors during 2013.
  • Operating expenses were $218 million for the year, compared with $214 million last year.
  • Operating income was $68 million for the year, a margin of 23.7 percent, compared with $72 million in 2012, a margin of 25.2 percent. Equity earnings increased 30 percent from $24 million last year to $31 million in 2013.
  • In 2013, LaSalle's capital raising momentum continued with $7 billion in equity commitments obtained during the year.
  • Assets under management were $47.6 billion as of December 31, 2013, compared with $47.0 billion at December 31, 2012. The net increase in assets under management was primarily due to $8.4 billion of acquisitions and takeovers, $7.4 billion of dispositions and withdrawals, and $900 million of reductions due to foreign currency movements. Assets under management increased by $900 million during the fourth quarter primarily due to $1.8 billion of acquisitions and takeovers, $1.7 billion of dispositions and withdrawals, and $1.0 billion of increases due to foreign currency movements.

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 fee revenue of $4.0 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 3.0 billion square feet. Its investment management business, LaSalle Investment Management, has $47.6 billion of real estate assets under management. For further information, visit www.jll.com.

200 East Randolph Drive Chicago Illinois 60601 ? 30  Warwick Street London W1B 5NH ? 9 Raffles Place #39-00 Republic Plaza Singapore 048619

Statements in this press release regarding, among other things, future financial results and performance, achievements, plans and objectives and dividend payments may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance, achievements, plans and objectives and dividend payments of Jones Lang LaSalle to be materially different from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include those discussed under "Business," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Quantitative and Qualitative Disclosures about Market Risk," and elsewhere in Jones Lang LaSalle's Annual Report on Form 10-K for the year ended December 31, 2012, and in the Quarterly Report on Form 10-Q for the quarters ended March 31, 2013, and June 30, 2013, and September 30, 2013 and in other reports filed with the Securities and Exchange Commission. There can be no assurance that future dividends will be declared since the actual declaration of future dividends, and the establishment of record and payment dates, remains subject to final determination by the Company's Board of Directors. Statements speak only as of the date of this release. Jones Lang LaSalle expressly disclaims any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect any change in Jones Lang LaSalle's expectations or results, or any change in events.

Conference Call

The firm will conduct a conference call for shareholders, analysts and investment professionals on Tuesday, January 28 at 6:00 p.m. EST.

To participate in the conference call, please dial into one of the following phone numbers five to ten minutes before the start time:

  • U.S. callers:                          +1 877 800 0896
  • International callers:               +1 706 679 7364
  • Pass code:                            31459103

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=97649 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 2013 earnings call has been posted to the Investor Relations section of the company's website:  www.jll.com.

Conference Call Replay

Available: 11:00 p.m. EST Tuesday, January 28 through 11:59 p.m. EST Friday, February 28 at the following numbers:

  • U.S. callers:                          + 1 855 859 2056 or + 1 800 585 8367
  • International callers:               + 1 404 537 3406
  • Pass code:                            31459103

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, 2013 and 2012

(in thousands, except share data)

(Unaudited)

Three Months Ended December 31,

Twelve Months Ended December 31,

2013

2012

2013

2012

Revenue

$ 1,509,418

$ 1,248,704

$ 4,461,591

$ 3,932,830

Operating expenses:

Compensation and benefits 

919,709

794,160

2,817,059

2,546,965

Operating, administrative and other

369,427

270,501

1,177,545

972,231

Depreciation and amortization 

20,857

20,100

79,853

78,810

Restructuring and acquisition charges

3,626

13,045

18,315

45,421

Total operating expenses

1,313,619

1,097,806

4,092,772

3,643,427

Operating income

195,799

150,898

368,819

289,403

Interest expense, net of interest income

(8,115)

(10,337)

(34,718)

(35,173)

Equity earnings from real estate ventures 

10,211

1,358

31,343

23,857

Income before income taxes and noncontrolling interest

197,895

141,919

365,444

278,087

Provision for income taxes  

50,372

34,657

92,092

69,244

Net income

147,523

107,262

273,352

208,843

Net income attributable to noncontrolling interest

201

190

3,487

793

Net income attributable to the Company

$    147,322

$    107,072

$   269,865

$    208,050

Dividends on unvested common stock, net of tax benefit

168

241

409

494

Net income attributable to common shareholders

$    147,154

$    106,831

$   269,456

$    207,556

Basic earnings per common share

$         3.31

$         2.43

$         6.09

$         4.73

Basic weighted average shares outstanding

44,440,684

44,051,014

44,258,878

43,848,737

Diluted earnings per common share

$         3.26

$         2.38

$         5.98

$         4.63

Diluted weighted average shares outstanding

45,146,449

44,953,524

45,072,120

44,799,437

EBITDA 

$    226,867

$    172,356

$   480,015

$    392,070

Please reference attached financial statement notes.

 

 JONES LANG LASALLE INCORPORATED 

 Segment Operating Results 

 For the Three and Twelve Months Ended December 31, 2013 and 2012 

 (in thousands) 

 (Unaudited) 

 Three Months Ended December 31, 

 Twelve Months Ended December 31, 

2013

2012

2013

2012

REAL ESTATE SERVICES 

AMERICAS

Revenue:

Operating revenue

$     641,079

$     549,287

$   1,918,092

$   1,723,025

Equity earnings (losses)

276

74

549

(3)

Total segment revenue

641,355

549,361

1,918,641

1,723,022

Gross contract costs1

(36,672)

(20,315)

(112,097)

(76,929)

Total segment fee revenue

604,683

529,046

1,806,544

1,646,093

Operating expenses:

Compensation, operating and administrative expenses

540,330

463,451

1,689,365

1,513,594

Depreciation and amortization

12,006

11,205

45,285

42,333

Total segment operating expenses

552,336

474,656

1,734,650

1,555,927

Gross contract costs1

(36,672)

(20,315)

(112,097)

(76,929)

Total fee-based segment operating expenses

515,664

454,341

1,622,553

1,478,998

Operating income

$       89,019

$       74,705

$     183,991

$     167,095

Adjusted EBITDA

$     101,025

$       85,910

$     229,276

$     209,428

EMEA

Revenue:

Operating revenue

$     491,779

$     357,901

$   1,323,201

$   1,072,909

Equity earnings (losses)

1

(82)

(535)

(310)

Total segment revenue

491,780

357,819

1,322,666

1,072,599

Gross contract costs1

(84,211)

(35,958)

(204,596)

(120,817)

Total segment fee revenue

407,569

321,861

1,118,070

951,782

Operating expenses:

Compensation, operating and administrative expenses

426,426

305,795

1,212,797

996,639

Depreciation and amortization

5,435

5,001

20,547

21,644

Total segment operating expenses

431,861

310,796

1,233,344

1,018,283

Gross contract costs1

(84,211)

(35,958)

(204,596)

(120,817)

Total fee-based segment operating expenses

347,650

274,838

1,028,748

897,466

Operating income

$       59,919

$       47,023

$       89,322

$       54,316

Adjusted EBITDA

$       65,354

$       52,024

$     109,869

$       75,960

 Three Months Ended December 31, 

 Twelve Months Ended December 31, 

2013

2012

2013

2012

ASIA PACIFIC

Revenue:

Operating revenue

$     310,256

$     278,329

$     965,626

$     875,476

Equity earnings (losses)

127

(11)

129

150

Total segment revenue

310,383

278,318

965,755

875,626

Gross contract costs1

(39,051)

(27,044)

(118,089)

(94,816)

Total segment fee revenue

271,332

251,274

847,666

780,810

Operating expenses:

Compensation, operating and administrative expenses

264,804

241,952

876,239

797,396

Depreciation and amortization

2,996

3,329

12,216

12,886

Total segment operating expenses

267,800

245,281

888,455

810,282

Gross contract costs1

(39,051)

(27,044)

(118,089)

(94,816)

Total fee-based segment operating expenses

228,749

218,237

770,366

715,466

Operating income

$       42,583

$       33,037

$       77,300

$       65,344

Adjusted EBITDA

$       45,579

$       36,366

$       89,516

$       78,230

LASALLE INVESTMENT MANAGEMENT

Revenue:

Operating revenue

$       66,304

$       63,187

$     254,672

$     261,420

Equity earnings

9,808

1,377

31,200

24,020

Total segment revenue

76,112

64,564

285,872

285,440

Operating expenses:

Compensation, operating and administrative expenses

57,577

53,463

216,203

211,567

Depreciation and amortization

419

565

1,805

1,947

Total segment operating expenses

57,996

54,028

218,008

213,514

Operating income

$       18,116

$       10,536

$       67,864

$       71,926

Adjusted EBITDA

$       18,535

$       11,101

$       69,669

$       73,873

SEGMENT RECONCILING ITEMS:

Total segment revenue

$   1,519,630

$   1,250,062

$   4,492,934

$   3,956,687

Reclassification of equity earnings

10,212

1,358

31,343

23,857

Total revenue

$   1,509,418

$   1,248,704

$   4,461,591

$   3,932,830

Total operating expenses before restructuring and acquisition charges

1,309,993

1,084,761

4,074,457

3,598,006

Operating income before restructuring and acquisition charges

$     199,425

$     163,943

$     387,134

$     334,824

Restructuring and acquisition charges

3,626

13,045

18,315

45,421

Operating income after restructuring and acquisition charges

$     195,799

$     150,898

$     368,819

$     289,403

Total adjusted EBITDA

$     230,493

$     185,401

$     498,330

$     437,491

Restructuring and acquisition charges

3,626

13,045

18,315

45,421

Total EBITDA

$     226,867

$     172,356

$     480,015

$     392,070

Please reference attached financial statement notes.

 

JONES LANG LASALLE INCORPORATED

Consolidated Balance Sheets

December 31, 2013 and December 31, 2012

(in thousands)

December 31,

December 31,

2013

2012

ASSETS

Current assets:

Cash and cash equivalents

$     152,726

$     152,159

Trade receivables, net of allowances

1,237,514

996,681

Notes and other receivables

94,519

101,952

Warehouse receivables

-

144,257

Prepaid expenses

56,491

53,165

Deferred tax assets, net

130,822

50,831

Other

17,630

16,484

Total current assets

1,689,702

1,515,529

Property and equipment, net of accumulated depreciation

295,547

269,338

Goodwill, with indefinite useful lives

1,900,080

1,853,761

Identified intangibles, net of accumulated amortization

45,579

45,932

Investments in real estate ventures 

287,200

268,107

Long-term receivables

65,353

58,881

Deferred tax assets, net

104,654

197,892

Other

209,238

142,059

Total assets

$   4,597,353

$   4,351,499

LIABILITIES AND EQUITY 

Current liabilities:

Accounts payable and accrued liabilities

$     528,505

$     497,817

Accrued compensation 

810,425

685,718

Short-term borrowings

24,522

32,233

Deferred tax liabilities, net

11,274

10,113

Deferred income

104,410

76,152

Deferred business acquisition obligations

36,040

105,772

Warehouse facility

-

144,257

Other

143,248

109,909

Total current liabilities

1,658,424

1,661,971

Noncurrent liabilities:

Credit facility

155,000

169,000

Long-term senior notes

275,000

275,000

Deferred tax liabilities, net

18,029

3,106

Deferred compensation

103,199

75,320

Deferred business acquisition obligations

99,196

107,661

Minority shareholder redemption liability

20,667

19,489

Other

77,029

80,696

Total liabilities

2,406,544

2,392,243

December 31,

December 31,

2013

2012

Company shareholders' equity:

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

44,447,958 and 44,054,042 shares issued and outstanding as of 

December 31, 2013 and December 31, 2012, respectively

444

441

Additional paid-in capital

945,512

932,255

Retained earnings 

1,266,967

1,017,128

Shares held in trust

(8,052)

(7,587)

Accumulated other comprehensive (loss) income

(25,202)

8,946

Total Company shareholders' equity

2,179,669

1,951,183

Noncontrolling interest

11,140

8,073

Total equity

2,190,809

1,959,256

Total liabilities and equity

$   4,597,353

$   4,351,499

Please reference attached financial statement notes.

 

JONES LANG LASALLE INCORPORATED

Summarized Consolidated Statements of Cash Flows

For the Twelve Months Ended December 31, 2013 and 2012

(in thousands)

Twelve Months Ended December 31,

2013

2012

Cash provided by operating activities

$             293,167

$             327,698

Cash used in investing activities

(164,212)

(151,252)

Cash used in financing activities

(128,388)

(208,741)

        Net increase (decrease) in cash and cash equivalents

$                    567

$             (32,295)

Cash and cash equivalents, beginning of period

152,159

184,454

Cash and cash equivalents, end of period

$             152,726

$             152,159

Please reference attached financial statement notes.

 

JONES LANG LASALLE INCORPORATEDFinancial 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, 2013, and 2012.

Three Months Ended

Twelve Months Ended

December 31,

December 31,

($ in millions)

2013

2012

2013

2012

Revenue

$   1,509.4

$   1,248.7

$   4,461.6

$   3,932.8

Gross contract costs

(159.9)

(83.3)

(434.8)

(292.6)

Fee revenue

$   1,349.5

$   1,165.4

$   4,026.8

$   3,640.2

Operating expenses

$   1,313.6

$   1,097.8

$   4,092.8

$   3,643.4

Gross contract costs

(159.9)

(83.3)

(434.8)

(292.6)

Fee-based operating expenses

$   1,153.7

$   1,014.5

$   3,658.0

$   3,350.8

Operating income

$      195.8

$      150.9

$      368.8

$      289.4

Add:

Restructuring and acquisition charges

3.6

13.0

18.3

45.4

King Sturge intangible amortization

0.6

0.6

2.2

4.9

Adjusted operating income

$      200.0

$      164.5

$      389.3

$      339.7

Adjusted operating income margin

14.8%

14.1%

9.7%

9.3%

 

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, 2013, and 2012, are (a) restructuring and acquisition charges and (b) intangible amortization related to the 2011 King Sturge acquisition. Below are reconciliations of GAAP net income attributable to common shareholders to adjusted net income and calculations of earnings per share ("EPS") for each net income total:

Three Months Ended

Twelve Months Ended

December 31,

December 31,

($ in millions, except per share data)

2013

2012

2013

2012

GAAP net income attributable to common shareholders

$      147.2

$      106.8

$      269.5

$      207.6

Shares (in 000s)

45,146

44,954

45,072

44,799

GAAP diluted earnings per share

$        3.26

$        2.38

$        5.98

$        4.63

GAAP net income attributable to common shareholders

$      147.2

$      106.8

$      269.5

$      207.6

Restructuring and acquisition charges, net

2.6

9.8

13.7

34.1

King Sturge intangible amortization, net

0.4

0.5

1.6

3.7

Adjusted net income

$      150.2

$      117.1

$      284.8

$      245.4

Shares (in 000s)

45,146

44,954

45,072

44,799

Adjusted diluted earnings per share

$        3.33

$        2.60

$        6.32

$        5.48

               

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:

Three Months Ended

Twelve Months Ended

December 31,

December 31,

($ in millions)

2013

2012

2013

2012

GAAP net income

$      147.5

$      107.3

$      273.4

$      208.8

Add:

Interest expense, net of interest income

8.1

10.3

34.7

35.2

Provision for income taxes

50.4

34.7

92.1

69.3

Depreciation and amortization

20.9

20.1

79.8

78.8

EBITDA

$      226.9

$      172.4

$      480.0

$      392.1

Add:

Restructuring and acquisition charges

3.6

13.0

18.3

45.4

Adjusted EBITDA

$      230.5

$      185.4

$      498.3

$      437.5

 

4.       Restructuring and acquisition charges are excluded from segment operating results, although they are included for consolidated reporting.  For purposes of segment operating results, the allocation of restructuring charges to the segments has been determined not to be meaningful to investors, so the performance of segment results has been evaluated without allocation of these charges.

5.       Intangible amortization from the second-quarter 2011 King Sturge acquisition is included in depreciation and amortization in the firm's consolidated results, as well as in EMEA's segment results, but has been excluded from adjusted operating income and adjusted net income.

6.       Each geographic region offers the firm's full range of Real Estate Services businesses consisting primarily of tenant representation and agency leasing; capital markets; property management and facilities management; project and development services; and advisory, consulting and valuations services. The Investment Management segment provides investment management services to institutional investors and high-net-worth individuals.

7.       The consolidated statements of cash flows are presented in summarized form. For complete consolidated statements of cash flows, please refer to the firm's Annual Report on Form 10-K for the year ended December 31, 2013, to be filed with the Securities and Exchange Commission shortly.

8.       EMEA refers to Europe, Middle East and Africa.  MENA refers to Middle East and North Africa.  Greater China includes China, Hong Kong, Macau and Taiwan.  Southeast Asia refers to Singapore, Indonesia, Philippines, Thailand and Vietnam. The BRIC countries include Brazil, Russia, India and China.

9.       Certain prior year amounts have been reclassified to conform to the current presentation.

SOURCE Jones Lang LaSalle Incorporated

For further information: Christie B. Kelly, Global Chief Financial Officer, +1 312 228 2316

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