JLL Reports Record Third-Quarter Performance for 2015
Adjusted EPS Up 11 Percent to $2.52; Fee Revenue Grows to $1.3 Billion
/EINPresswire.com/ -- CHICAGO, IL -- (Marketwired) -- 10/28/15 -- Jones Lang LaSalle Incorporated (NYSE: JLL) today reported adjusted earnings per share of $2.52, up from $2.27 in the prior year. Third-quarter fee revenue totaled $1.3 billion, up 17 percent in local currency from the third quarter of 2014. All percentage variances are calculated on a local currency basis.
-
Ongoing investment fuels broad-based fee revenue growth and margin expansion
-
Acquisition pace accelerates; 15 acquisitions year to date
-
LaSalle Investment Management continues strong performance and capital raise momentum
-
Robust pipelines in place for seasonally strong fourth quarter
-
Semi-annual dividend increases 7 percent to $0.29 per share
----------------------------------------------------------------------------
Summary Financial Results
($ in millions, except per share Three Months Ended Nine Months Ended
data) September 30, September 30,
-------------------- -------------------
2015 2014 2015 2014
----------------------------------------------------------------------------
Revenue $ 1,501 $ 1,366 $ 4,078 $ 3,681
Fee Revenue(1) $ 1,287 $ 1,181 $ 3,498 $ 3,144
Adjusted Net Income(2) $ 114 $ 103 $ 249 $ 196
U.S. GAAP Net Income(2) $ 110 $ 104 $ 243 $ 192
Adjusted Earnings per Share(2) $ 2.52 $ 2.27 $ 5.47 $ 4.32
Earnings per Share $ 2.43 $ 2.30 $ 5.34 $ 4.24
Adjusted EBITDA(3) $ 190 $ 167 $ 438 $ 351
Adjusted EBITDA, Real Estate
Services $ 127 $ 99 $ 308 $ 243
Adjusted EBITDA, LaSalle
Investment Management $ 63 $ 68 $ 130 $ 108
----------------------------------------------------------------------------
See Financial Statement Notes (1), (2) and (3) following the Financial
Statements in this news release
CEO Comment:
"We completed another record quarter at JLL, with double-digit fee revenue growth across all service lines and geographic segments, healthy margin expansion and continued outstanding performance by LaSalle Investment Management," said Colin Dyer, President and CEO. "We continue to invest strategically in the long-term growth of our company, and have excellent momentum as we move into 2016," Dyer added.
----------------------------------------------------------------------------
Consolidated Revenue
($ in millions, "LC" = local Three Months Ended % Change % Change
currency) September 30, in USD in LC
---------------------
2015 2014
----------------------------------------------------------------------------
Real Estate Services ("RES")
Leasing $ 417.8 $ 368.1 14% 19%
Capital Markets & Hotels 223.7 192.9 16% 26%
Property & Facility Management Fee
Revenue(1) 270.7 259.6 4% 14%
Property & Facility Management 378.3 376.3 1% 10%
Project & Development Services Fee
Revenue(1) 125.9 112.6 12% 21%
Project & Development Services 232.3 181.3 28% 43%
Advisory, Consulting and Other 115.0 105.1 9% 19%
---------------------
Total RES Fee Revenue(1) $ 1,153.1 $ 1,038.3 11% 17%
---------------------
Total RES Revenue $ 1,367.1 $ 1,223.7 12% 19%
---------------------
LaSalle Investment Management
("LaSalle")
Advisory Fees $ 60.7 $ 60.9 --% 7%
Transaction Fees & Other 5.0 10.8 (54)% (50)%
Incentive Fees 68.5 70.6 (3)% 8%
---------------------
Total LaSalle Revenue $ 134.2 $ 142.3 (6)% 3%
---------------------
Total Firm Fee Revenue(1) $ 1,287.3 $ 1,180.6 9% 17%
=====================
Total Firm Revenue $ 1,501.3 $ 1,366.0 10% 19%
=====================
----------------------------------------------------------------------------
n.m. - not meaningful
----------------------------------------------------------------------------
Consolidated Revenue
($ in millions, "LC" = local Nine Months Ended % Change % Change
currency) September 30, in USD in LC
----------------------
2015 2014
----------------------------------------------------------------------------
Real Estate Services ("RES")
Leasing $ 1,103.8 $ 1,004.1 10% 14%
Capital Markets & Hotels 623.9 492.3 27% 38%
Property & Facility Management Fee
Revenue(1) 790.8 762.8 4% 12%
Property & Facility Management 1,115.8 1,093.2 2% 10%
Project & Development Services Fee
Revenue(1) 348.5 302.9 15% 25%
Project & Development Services 603.5 508.8 19% 33%
Advisory, Consulting and Other 331.1 306.1 8% 18%
---------------------
Total RES Fee Revenue(1) $ 3,198.1 $ 2,868.2 12% 19%
---------------------
Total RES Revenue $ 3,778.1 $ 3,404.5 11% 20%
---------------------
LaSalle Investment Management
("LaSalle")
Advisory Fees $ 181.3 $ 176.8 3% 11%
Transaction Fees & Other 19.5 19.8 (2)% 7%
Incentive Fees 99.3 79.5 25% 38%
---------------------
Total LaSalle Revenue $ 300.1 $ 276.1 9% 18%
---------------------
Total Firm Fee Revenue(1) $ 3,498.2 $ 3,144.3 11% 20%
=====================
Total Firm Revenue $ 4,078.2 $ 3,680.6 11% 20%
=====================
----------------------------------------------------------------------------
n.m. - not meaningful
Consolidated Performance Highlights:
- Consolidated fee revenue for the third quarter was $1.3 billion, up 17 percent from 2014. Growth was broad-based, led by Leasing, up $50 million or 19 percent, Capital Markets & Hotels, up $31 million or 26 percent, and Project & Development Services, up $13 million or 21 percent.
- Consolidated fee-based operating expenses, excluding restructuring and acquisition charges, were $1.2 billion for the third quarter, compared with $1.1 billion last year. The firm continued to invest in technology and people for its clients in support of the growing business.
- LaSalle Investment Management's advisory fees grew 7 percent; total revenue increased 3 percent driven by substantial incentive fees as certain funds near the end of their stated investment periods. LaSalle also recognized significant equity earnings from net valuation increases and investment dispositions.
- Adjusted EBITDA margin calculated on a fee revenue basis was 14.8 percent for the third quarter, compared with 14.1 percent last year.
- Adjusted earnings per share reached $2.52 for the third quarter, up 11 percent from last year despite a negative foreign exchange impact of approximately $0.23, or 10 percent compared with a year ago.
Balance Sheet and Net Interest Expense:
- The firm's total net debt was $435 million at quarter end, a decrease of $87 million from the second quarter of 2015.
- Net interest expense for the third quarter was $6.8 million, down from $7.4 million in the third quarter of 2014 primarily due to lower average borrowings compared with last year.
- Reflecting confidence in the firm's cash generation, the Board of Directors declared a semi-annual dividend of $0.29 per share, a 7 percent increase from the $0.27 per share payment made in June 2015. The dividend payment will be made on December 15, 2015, to shareholders of record at the close of business on November 13, 2015.
Business Segment Performance Highlights
Americas Real Estate Services
----------------------------------------------------------------------------
Americas Revenue
($ in millions, "LC" = local Three Months Ended % Change % Change
currency) September 30, in USD in LC
----------------------
2015 2014
----------------------------------------------------------------------------
Leasing $ 296.9 $ 256.2 16% 17%
Capital Markets & Hotels 74.9 72.2 4% 5%
Property & Facility Management Fee
Revenue(1) 117.5 106.1 11% 16%
Property & Facility Management 168.0 166.7 1% 8%
Project & Development Services Fee
Revenue(1) 63.4 57.2 11% 15%
Project & Development Services 65.1 57.2 14% 18%
Advisory, Consulting and Other 34.5 30.1 15% 17%
---------------------
Operating Revenue $ 587.2 $ 521.8 13% 16%
Equity Earnings 4.5 (0.8) n.m. n.m.
---------------------
Total Segment Fee Revenue(1) $ 591.7 $ 521.0 14% 16%
---------------------
Total Segment Revenue $ 643.9 $ 581.6 11% 14%
=====================
----------------------------------------------------------------------------
n.m. - not meaningful
----------------------------------------------------------------------------
Americas Revenue
($ in millions, "LC" = local Nine Months Ended % Change % Change
currency) September 30, in USD in LC
---------------------
2015 2014
----------------------------------------------------------------------------
Leasing $ 790.7 $ 694.4 14% 15%
Capital Markets & Hotels 226.2 172.5 31% 32%
Property & Facility Management Fee
Revenue(1) 345.2 315.4 9% 13%
Property & Facility Management 499.3 466.8 7% 13%
Project & Development Services Fee
Revenue(1) 176.5 153.2 15% 19%
Project & Development Services 180.4 154.7 17% 20%
Advisory, Consulting and Other 94.4 85.1 11% 13%
---------------------
Operating Revenue $ 1,633.0 $ 1,420.6 15% 17%
Equity Earnings 5.4 0.4 n.m. n.m.
---------------------
Total Segment Fee Revenue(1) $ 1,638.4 $ 1,421.0 15% 17%
---------------------
Total Segment Revenue $ 1,796.4 $ 1,573.9 14% 17%
=====================
----------------------------------------------------------------------------
n.m. - not meaningful
Americas Performance Highlights:
- Fee revenue for the quarter was $592 million, an increase of 16 percent from 2014. Revenue growth compared with last year was broad-based with Leasing up 17 percent; Advisory, Consulting and Other up 17 percent; Property & Facility Management up 16 percent; and Project & Development Services up 15 percent. Growth in the region was primarily led by U.S. markets including New York, Los Angeles and Atlanta.
- Fee-based operating expenses, excluding restructuring and acquisition charges, were $530 million for the quarter, compared with $473 million last year.
- Operating income was $62 million for the quarter, compared with $48 million in 2014. Year-to-date operating income was $143 million, up from $112 million in 2014.
- Adjusted EBITDA was $77 million for the quarter, compared with $60 million last year. Adjusted EBITDA margin for the quarter, calculated on a fee revenue basis, was 13.0 percent, compared with 11.4 percent in 2014. Year-to-date Adjusted EBITDA was $190 million, up from $150 million in 2014. Year-to-date Adjusted EBITDA margin calculated on a fee revenue basis was 11.6 percent, compared with 10.6 percent in 2014.
EMEA Real Estate Services
----------------------------------------------------------------------------
EMEA Revenue
($ in millions, "LC" = local Three Months Ended % Change % Change
currency) September 30, in USD in LC
---------------------
2015 2014
----------------------------------------------------------------------------
Leasing $ 72.4 $ 66.6 9% 23%
Capital Markets & Hotels 110.3 90.8 21% 35%
Property & Facility Management Fee
Revenue(1) 53.8 58.8 (9)% 3%
Property & Facility Management 75.0 81.6 (8)% 3%
Project & Development Services Fee
Revenue(1) 40.7 35.8 14% 27%
Project & Development Services 133.6 83.4 60% 83%
Advisory, Consulting and Other 55.7 46.2 21% 35%
---------------------
Operating Revenue $ 332.9 $ 298.2 12% 25%
Equity Earnings -- -- n.m. --%
---------------------
Total Segment Fee Revenue(1) $ 332.9 $ 298.2 12% 25%
---------------------
Total Segment Revenue $ 447.0 $ 368.6 21% 37%
=====================
----------------------------------------------------------------------------
n.m. - not meaningful
----------------------------------------------------------------------------
EMEA Revenue
($ in millions, "LC" = local Nine Months Ended % Change % Change
currency) September 30, in USD in LC
---------------------
2015 2014
----------------------------------------------------------------------------
Leasing $ 185.9 $ 188.3 (1)% 14%
Capital Markets & Hotels 298.7 238.6 25% 42%
Property & Facility Management Fee
Revenue(1) 156.4 171.2 (9)% 4%
Property & Facility Management 219.6 246.6 (11)% 1%
Project & Development Services Fee
Revenue(1) 111.3 98.5 13% 30%
Project & Development Services 324.1 258.0 26% 48%
Advisory, Consulting and Other 160.8 144.6 11% 26%
---------------------
Operating Revenue $ 913.1 $ 841.2 9% 24%
Equity Earnings 0.7 -- n.m. n.m
---------------------
Total Segment Fee Revenue(1) $ 913.8 $ 841.2 9% 24%
---------------------
Total Segment Revenue $ 1,189.8 $ 1,076.1 11% 27%
=====================
----------------------------------------------------------------------------
n.m. - not meaningful
EMEA Performance Highlights:
- EMEA's performance during the third quarter was significantly higher in local currencies than in U.S. dollars due to the continued strength of the U.S. dollar against European currencies.
- Fee revenue for the quarter was $333 million, an increase of 25 percent from 2014. Revenue growth was driven by Capital Markets & Hotels up 35 percent; Advisory, Consulting and Other up 35 percent; Project & Development Services up 27 percent; and Leasing up 23 percent compared with last year. Growth in the region was led by the U.K., Germany and France.
- Fee-based operating expenses, excluding restructuring and acquisition charges, were $307 million for the quarter, compared with $282 million last year.
- Operating income was $26 million for the quarter, compared with $16 million in 2014. Year-to-date operating income was $56 million, up from $36 million in 2014.
- Adjusted EBITDA was $33 million for the quarter, compared with $23 million last year. Adjusted EBITDA margin calculated on a fee revenue basis was 10.0 percent for the quarter, compared with 7.6 percent in 2014. Year-to-date Adjusted EBITDA was $74 million, up from $54 million in 2014. Year-to-date Adjusted EBITDA margin calculated on a fee revenue basis was 8.1 percent, compared with 6.4 percent in 2014.
Asia Pacific Real Estate Services
----------------------------------------------------------------------------
Asia Pacific Revenue
($ in millions, "LC" = local Three Months Ended % Change % Change
currency) September 30, in USD in LC
---------------------
2015 2014
----------------------------------------------------------------------------
Leasing $ 48.5 $ 45.3 7% 19%
Capital Markets & Hotels 38.5 29.9 29% 48%
Property & Facility Management Fee
Revenue(1) 99.4 94.7 5% 18%
Property & Facility Management 135.3 128.0 6% 18%
Project & Development Services Fee
Revenue(1) 21.8 19.6 11% 26%
Project & Development Services 33.6 40.7 (17)% (6)%
Advisory, Consulting and Other 24.8 28.8 (14)% (3)%
---------------------
Operating Revenue $ 233.0 $ 218.3 7% 20%
Equity Earnings 0.2 0.2 --% 8%
---------------------
Total Segment Fee Revenue(1) $ 233.2 $ 218.5 7% 20%
---------------------
Total Segment Revenue $ 280.9 $ 272.9 3% 15%
=====================
----------------------------------------------------------------------------
n.m. - not meaningful
----------------------------------------------------------------------------
Asia Pacific Revenue
($ in millions, "LC" = local Nine Months Ended % Change % Change
currency) September 30, in USD in LC
---------------------
2015 2014
----------------------------------------------------------------------------
Leasing $ 127.2 $ 121.4 5% 14%
Capital Markets & Hotels 99.0 81.2 22% 37%
Property & Facility Management Fee
Revenue(1) 289.2 276.2 5% 15%
Property & Facility Management 396.9 379.8 5% 13%
Project & Development Services Fee
Revenue(1) 60.7 51.2 19% 31%
Project & Development Services 99.0 96.1 3% 14%
Advisory, Consulting and Other 75.9 76.4 (1)% 9%
---------------------
Operating Revenue $ 652.0 $ 606.4 8% 18%
Equity Losses 0.2 0.1 n.m. 92%
---------------------
Total Segment Fee Revenue(1) $ 652.2 $ 606.5 8% 18%
---------------------
Total Segment Revenue $ 798.2 $ 755.0 6% 16%
=====================
----------------------------------------------------------------------------
n.m. - not meaningful
Asia Pacific Performance Highlights:
- Asia Pacific's performance during the third quarter was significantly higher in local currencies than in U.S. dollars due to the continued strength of the U.S. dollar, particularly against the Australian dollar and Japanese yen.
- Fee revenue for the quarter was $233 million, an increase of 20 percent from 2014. Revenue growth was driven by Capital Markets & Hotels up 48 percent, Leasing up 19 percent, and Property & Facility Management up 18 percent, compared with last year. Growth in the region was led by Australia, India and China's tier one cities, including Beijing and Shanghai.
- Fee-based operating expenses, excluding restructuring and acquisition charges, were $220 million for the quarter, compared with $203 million last year.
- Operating income was $13 million for the quarter, compared with $15 million in 2014. Year-to-date operating income was $34 million, up from $32 million in 2014.
- Adjusted EBITDA was $17 million for the quarter, compared with $16 million last year. Adjusted EBITDA margin calculated on a fee revenue basis was 7.1 percent for the quarter, compared with 7.5 percent in 2014. Year-to-date Adjusted EBITDA was $44 million, up from $40 million in 2014. Year-to-date Adjusted EBITDA margin calculated on a fee revenue basis was 6.8 percent, compared with 6.5 percent in 2014.
LaSalle Investment Management
----------------------------------------------------------------------------
LaSalle Investment Management
Revenue
($ in millions, "LC" = local Three Months Ended % Change % Change
currency) September 30, in USD in LC
---------------------
2015 2014
----------------------------------------------------------------------------
Advisory Fees $ 60.7 $ 60.9 --% 7%
Transaction Fees & Other 5.0 10.8 (54)% (50)%
Incentive Fees 68.5 70.6 (3)% 8%
---------------------
Operating Revenue $ 134.2 $ 142.3 (6)% 3%
Equity Earnings 20.7 20.1 3% 4%
---------------------
Total Segment Revenue $ 154.9 $ 162.4 (5)% 3%
=====================
----------------------------------------------------------------------------
n.m. - not meaningful
----------------------------------------------------------------------------
LaSalle Investment Management
Revenue
($ in millions, "LC" = local Nine Months Ended % Change % Change
currency) September 30, in USD in LC
---------------------
2015 2014
----------------------------------------------------------------------------
Advisory Fees $ 181.3 $ 176.8 3% 11%
Transaction Fees & Other 19.5 19.8 (2)% 7%
Incentive Fees 99.3 79.5 25% 38%
---------------------
Operating Revenue $ 300.1 $ 276.1 9% 18%
Equity Earnings 57.6 40.4 43% 44%
---------------------
Total Segment Revenue $ 357.7 $ 316.5 13% 21%
=====================
----------------------------------------------------------------------------
n.m. - not meaningful
LaSalle Investment Management Performance Highlights:
- Total segment revenue was $155 million for the quarter, compared with $162 million last year. This included advisory fee growth of 7 percent, $69 million of incentive fees and $21 million of equity earnings.
- Incentive fees and equity earnings were notable for the quarter, despite a tough 2014 comparable. Incentive fees were driven by the sale of assets as LaSalle realized gains from legacy investments, whereas equity earnings were primarily valuation driven.
- Operating expenses were $92 million for the quarter, compared with $95 million last year. Operating income was $63 million for the quarter, compared with $68 million last year.
- Adjusted EBITDA was $63 million for the quarter, compared with $68 million last year. Adjusted EBITDA margin was 40.9 percent, compared with 42.0 percent in 2014. Year-to-date Adjusted EBITDA was $130 million, up from $108 million in 2014. Year-to-date Adjusted EBITDA margin was 36.3 percent, compared to 34.0 percent in 2014.
- Capital raise was $838 million for the quarter and $3.8 billion year-to-date.
- Assets under management were $57.2 billion as of September 30, 2015, up from $56.0 billion as of June 30, 2015. The net increase in assets under management resulted from $2.5 billion of acquisitions and takeovers, $1.7 billion of dispositions and withdrawals, $0.7 billion of net valuation decreases and $1.1 billion of net foreign currency increases.
About JLL
JLL (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. A Fortune 500 company with annual fee revenue of $4.7 billion and gross revenue of $5.4 billion, JLL has more than 230 corporate offices, operates in more than 80 countries and has a global workforce of approximately 58,000. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3.4 billion square feet, or 316 million square meters, and completed $118 billion in sales, acquisitions and finance transactions in 2014. Its investment management business, LaSalle Investment Management, has $57.2 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. 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
Cautionary Note Regarding Forward-Looking Statements
Statements in this news 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 JLL to be materially different from those expressed or implied by such forward-looking statements. For additional information concerning risks, uncertainties and other factors that could cause actual results to differ materially from those anticipated in forward-looking statements, and risks to JLL's business in general, please refer to those factors 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 JLL's Annual Report on Form 10-K for the year ended December 31, 2014, on Form 10-Q for the quarters ended March 31, 2015 and June 30, 2015, 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. Any forward-looking statements speak only as of the date of this release, and except to the extent required by applicable securities laws, JLL expressly disclaims any obligation or undertaking to publicly update or revise any forward-looking statements contained herein to reflect any change in JLL's expectations or results, or any change in events.
Conference Call
Management will conduct a conference call with shareholders, analysts and investment professionals on Wednesday, October 28, 2015 at 9:00 a.m. EDT.
If you would like to participate in the teleconference, please dial into one of the following phone numbers five to ten minutes before the start time (the passcode will also be required):
U.S. callers: +1 844 231 9804
International callers: +1 402 858 7998
Passcode: 49805888
Webcast
We are also offering a live webcast. Follow these steps to participate:
1. You must have a minimum 14.4 Kbps Internet connection
2. Log on to http://www.visualwebcaster.com/event.asp?id=102889
3. Download free Windows Media Player software: (link located under registration form)
4. If you experience problems listening, please call the Webcast Hotline +1 800 744 9473 and provide your Event ID (102889).
Supplemental Information
Supplemental information regarding the third-quarter 2015 earnings call has been posted to the Investor Relations section of the company's website: www.jll.com.
Conference Call Replay
Available: 12:00 p.m. EDT Wednesday, October 28, 2015 through 11:59 p.m. EST Saturday, November 28, 2015 at the following numbers:
U.S. callers: +1 855 859 2056 or + 1 800 585 8367
International callers: +1 404 537 3406
Passcode: 49805888
Web Audio Replay
An audio replay will be available. Information and the link can be found on the company's website: www.jll.com.
If you have any questions, please contact JLL's Investor Relations department at: JLLInvestorRelations@am.jll.com.
JONES LANG LASALLE INCORPORATED
Consolidated Statements of Operations
For the Three and Nine Months Ended September 30, 2015 and 2014
(in thousands, except share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------- -------------------------
2015 2014 2015 2014
------------ ------------ ------------ ------------
Revenue $ 1,501,267 $ 1,365,975 $ 4,078,254 $ 3,680,622
Operating expenses:
Compensation and
benefits 896,080 828,241 2,459,056 2,226,804
Operating,
administrative and
other 440,119 388,290 1,245,443 1,141,376
Depreciation and
amortization 26,643 22,023 77,060 67,214
Restructuring and
acquisition charges
(4) 18,108 (37) 20,757 41,379
------------ ------------ ------------ ------------
Total operating
expenses 1,380,950 1,238,517 3,802,316 3,476,773
------------ ------------ ------------ ------------
Operating income (1) 120,317 127,458 275,938 203,849
Interest expense, net of
interest income (6,774) (7,361) (20,369) (21,661)
Equity earnings from
real estate ventures 25,362 19,552 63,873 40,945
------------ ------------ ------------ ------------
Income before income
taxes and
noncontrolling interest
(4) 138,905 139,649 319,442 223,133
Provision for income
taxes (4) 25,720 34,912 71,576 29,889
------------ ------------ ------------ ------------
Net income (4) 113,185 104,737 247,866 193,244
Net income attributable
to noncontrolling
interest 2,776 453 5,252 1,116
------------ ------------ ------------ ------------
Net income attributable
to the Company $ 110,409 $ 104,284 $ 242,614 $ 192,128
------------ ------------ ------------ ------------
Dividends on unvested
common stock, net of
tax benefit -- -- 163 176
------------ ------------ ------------ ------------
Net income attributable
to common shareholders $ 110,409 $ 104,284 $ 242,451 $ 191,952
------------ ------------ ------------ ------------
Basic earnings per
common share $ 2.45 $ 2.33 $ 5.40 $ 4.30
------------ ------------ ------------ ------------
Basic weighted average
shares outstanding 45,001,309 44,809,133 44,905,217 44,637,429
------------ ------------ ------------ ------------
Diluted earnings per
common share (2) $ 2.43 $ 2.30 $ 5.34 $ 4.24
------------ ------------ ------------ ------------
Diluted weighted average
shares outstanding 45,452,959 45,290,595 45,394,517 45,241,766
------------ ------------ ------------ ------------
EBITDA (3) $ 172,322 $ 169,033 $ 416,871 $ 312,008
------------ ------------ ------------ ------------
Please reference attached financial statement notes.
JONES LANG LASALLE INCORPORATED
Segment Operating Results
For the Three and Nine Months Ended September 30, 2015 and 2014
(in thousands)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------- -----------------------
2015 2014 2015 2014
----------- ----------- ----------- -----------
REAL ESTATE SERVICES
AMERICAS
Revenue:
Operating revenue $ 639,405 $ 582,387 $1,791,071 $1,573,552
Equity earnings (losses) 4,450 (756) 5,366 446
----------- ----------- ----------- -----------
Total segment revenue 643,855 581,631 1,796,437 1,573,998
Gross contract costs (1) (52,150) (60,601) (158,047) (152,863)
----------- ----------- ----------- -----------
Total segment fee
revenue 591,705 521,030 1,638,390 1,421,135
----------- ----------- ----------- -----------
Operating expenses:
Compensation, operating
and administrative
expenses 566,668 521,987 1,606,929 1,423,746
Depreciation and
amortization 15,638 11,658 46,511 38,500
----------- ----------- ----------- -----------
Total segment operating
expenses 582,306 533,645 1,653,440 1,462,246
Gross contract costs (1) (52,150) (60,601) (158,047) (152,863)
----------- ----------- ----------- -----------
Total fee-based segment
operating expenses 530,156 473,044 1,495,393 1,309,383
----------- ----------- ----------- -----------
Operating income $ 61,549 $ 47,986 $ 142,997 $ 111,752
=========== =========== =========== ===========
Adjusted EBITDA $ 77,187 $ 59,644 $ 189,508 $ 150,252
----------- ----------- ----------- -----------
EMEA
Revenue:
Operating revenue $ 447,037 $ 368,564 $1,189,070 $1,076,088
Equity earnings 8 13 752 14
----------- ----------- ----------- -----------
Total segment revenue 447,045 368,577 1,189,822 1,076,102
Gross contract costs (1) (114,125) (70,403) (276,047) (234,929)
----------- ----------- ----------- -----------
Total segment fee
revenue 332,920 298,174 913,775 841,173
----------- ----------- ----------- -----------
Operating expenses:
Compensation, operating
and administrative
expenses 413,838 345,893 1,116,030 1,022,599
Depreciation and
amortization 6,800 6,355 18,099 17,303
----------- ----------- ----------- -----------
Total segment operating
expenses 420,638 352,248 1,134,129 1,039,902
Gross contract costs (1) (114,125) (70,403) (276,047) (234,929)
----------- ----------- ----------- -----------
Total fee-based segment
operating expenses 306,513 281,845 858,082 804,973
----------- ----------- ----------- -----------
Operating income $ 26,407 $ 16,329 $ 55,693 $ 36,200
=========== =========== =========== ===========
Adjusted EBITDA $ 33,207 $ 22,684 $ 73,792 $ 53,503
----------- ----------- ----------- -----------
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------- -----------------------
2015 2014 2015 2014
----------- ----------- ----------- -----------
ASIA PACIFIC
Revenue:
Operating revenue $ 280,651 $ 272,708 $ 797,974 $ 754,890
Equity earnings 193 198 215 119
----------- ----------- ----------- -----------
Total segment revenue 280,844 272,906 798,189 755,009
Gross contract costs (1) (47,697) (54,419) (145,955) (148,483)
----------- ----------- ----------- -----------
Total segment fee
revenue 233,147 218,487 652,234 606,526
----------- ----------- ----------- -----------
Operating expenses:
Compensation, operating
and administrative
expenses 264,261 254,352 753,763 713,111
Depreciation and
amortization 3,657 3,444 10,878 9,869
----------- ----------- ----------- -----------
Total segment operating
expenses 267,918 257,796 764,641 722,980
Gross contract costs (1) (47,697) (54,419) (145,955) (148,483)
----------- ----------- ----------- -----------
Total fee-based segment
operating expenses 220,221 203,377 618,686 574,497
----------- ----------- ----------- -----------
Operating income $ 12,926 $ 15,110 $ 33,548 $ 32,029
=========== =========== =========== ===========
Adjusted EBITDA $ 16,583 $ 16,338 $ 44,426 $ 39,682
----------- ----------- ----------- -----------
LASALLE INVESTMENT
MANAGEMENT
Revenue:
Operating revenue $ 134,174 $ 142,316 $ 300,139 $ 276,092
Equity earnings 20,711 20,097 57,540 40,366
----------- ----------- ----------- -----------
Total segment revenue 154,885 162,413 357,679 316,458
Operating expenses:
Compensation, operating
and administrative
expenses 91,432 94,299 227,777 208,724
Depreciation and
amortization 548 566 1,572 1,542
----------- ----------- ----------- -----------
Total segment operating
expenses 91,980 94,865 229,349 210,266
----------- ----------- ----------- -----------
Operating income $ 62,905 $ 67,548 $ 128,330 $ 106,192
=========== =========== =========== ===========
Adjusted EBITDA $ 63,453 $ 68,114 $ 129,902 $ 107,734
----------- ----------- ----------- -----------
----------------------------------------------------------------------------
SEGMENT RECONCILING ITEMS
Total segment revenue $1,526,629 $1,385,527 $4,142,127 $3,721,567
Reclassification of equity
earnings 25,362 19,552 63,873 40,945
----------- ----------- ----------- -----------
Total revenue $1,501,267 $1,365,975 $4,078,254 $3,680,622
=========== =========== =========== ===========
Total operating expenses
before restructuring and
acquisition charges 1,362,842 1,238,554 3,781,559 3,435,394
----------- ----------- ----------- -----------
Operating income before
restructuring and
acquisition charges $ 138,425 $ 127,421 $ 296,695 $ 245,228
=========== =========== =========== ===========
Restructuring and
acquisition charges (4) 18,108 (37) 20,757 41,379
----------- ----------- ----------- -----------
Operating income after
restructuring and
acquisition charges $ 120,317 $ 127,458 $ 275,938 $ 203,849
=========== =========== =========== ===========
Total adjusted EBITDA $ 190,430 $ 166,780 $ 437,628 $ 351,171
Restructuring and
acquisition charges (4) 18,108 (2,253) 20,757 39,163
----------- ----------- ----------- -----------
Total EBITDA $ 172,322 $ 169,033 $ 416,871 $ 312,008
=========== =========== =========== ===========
Please reference attached financial statement notes.
JONES LANG LASALLE INCORPORATED
Consolidated Balance Sheets
September 30, 2015, December 31, 2014 and September 30, 2014
(in thousands)
(Unaudited) (Unaudited)
September 30, December 31, September 30,
2015 2014 2014
------------- ------------- -------------
ASSETS
Current assets:
Cash and cash equivalents $ 193,499 $ 250,413 $ 162,568
Trade receivables, net of
allowances 1,407,440 1,375,035 1,216,322
Notes and other receivables 222,270 181,377 193,324
Warehouse receivables 41,274 83,312 185,797
Prepaid expenses 90,065 64,963 84,484
Deferred tax assets, net 129,869 135,251 122,353
Other 9,980 27,825 29,399
------------- ------------- -------------
Total current assets 2,094,397 2,118,176 1,994,247
Property and equipment, net of
accumulated depreciation 377,832 368,361 344,765
Goodwill, with indefinite useful
lives 1,999,623 1,907,924 1,910,990
Identified intangibles, net of
accumulated amortization 43,384 38,841 40,443
Investments in real estate
ventures 311,814 297,142 290,674
Long-term receivables 110,044 85,749 94,170
Deferred tax assets, net 104,670 90,897 64,832
Deferred compensation plans 128,910 111,234 108,484
Other 64,352 57,012 86,181
------------- ------------- -------------
Total assets $ 5,235,026 $ 5,075,336 $ 4,934,786
============= ============= =============
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued
liabilities $ 636,824 $ 630,037 $ 518,704
Accrued compensation 790,977 990,678 665,556
Short-term borrowings 30,504 19,623 43,292
Deferred tax liabilities, net 16,554 16,554 11,606
Deferred income 143,913 104,565 119,963
Deferred business acquisition
obligations 48,616 49,259 46,462
Warehouse facility 41,274 83,312 185,797
Minority shareholder redemption
liability -- 11,158 10,909
Other 153,109 141,825 157,987
------------- ------------- -------------
Total current liabilities 1,861,771 2,047,011 1,760,276
Noncurrent liabilities:
Credit facility 235,005 -- 250,000
Long-term senior notes 275,000 275,000 275,000
Deferred tax liabilities, net 17,723 17,082 18,029
Deferred compensation 142,551 125,857 114,576
Deferred business acquisition
obligations 37,975 68,848 65,937
Minority shareholder redemption
liability -- -- --
Other 130,301 118,969 94,111
------------- ------------- -------------
Total liabilities 2,700,326 2,652,767 2,577,929
(Unaudited) (Unaudited)
September 30, December 31, September 30,
2015 2014 2014
------------- ------------- -------------
Redeemable noncontrolling interest 8,917 13,449 13,638
Company shareholders' equity:
Common stock, $.01 par value per
share,100,000,000 shares
authorized; 45,033,713,
44,828,779, and 44,817,758
shares issued and outstanding
as of September 30, 2015,
December 31, 2014 and September
30, 2014, respectively 450 448 448
Additional paid-in capital 980,698 961,850 957,374
Retained earnings 1,861,427 1,631,145 1,448,602
Shares held in trust (6,328) (6,407) (6,407)
Accumulated other comprehensive
income (loss) (329,747) (200,239) (76,839)
------------- ------------- -------------
Total Company shareholders'
equity 2,506,500 2,386,797 2,323,178
Noncontrolling interest 19,283 22,323 20,041
------------- ------------- -------------
Total equity 2,525,783 2,409,120 2,343,219
------------- ------------- -------------
Total liabilities and equity $ 5,235,026 $ 5,075,336 $ 4,934,786
============= ============= =============
Please reference attached financial statement notes.
JONES LANG LASALLE INCORPORATED
Summarized Consolidated Statements of Cash Flows
For the Nine Months Ended September 30, 2015 and 2014
(in thousands)
Nine Months Ended
September 30,
-----------------------
2015 2014
----------- -----------
Cash (used in) provided by operating activities $ (18,245) $ 42,356
Cash used in investing activities (184,464) (111,503)
Cash provided by financing activities 160,243 82,769
Effect of currency exchange rate changes on cash and
cash equivalents (14,448) (3,780)
----------- -----------
Net (decrease) increase in cash and cash
equivalents $ (56,914) $ 9,842
Cash and cash equivalents, beginning of period 250,413 152,726
----------- -----------
Cash and cash equivalents, end of period $ 193,499 $ 162,568
=========== ===========
Please reference attached financial statement notes.
JONES LANG LASALLE INCORPORATED
Financial Statement Notes
1. Consistent with U.S. GAAP ("GAAP"), gross contract vendor and subcontractor costs ("gross contract costs") which are managed on certain client assignments in the Property & Facility Management and Project & Development Services business lines are presented on a gross basis in both revenue and operating expenses. Gross contract costs are excluded from revenue and operating expenses in determining "fee revenue" and "fee-based operating expenses," respectively. Excluding these costs from revenue and operating expenses more accurately reflects how the firm manages its expense base and its operating margins.
Adjusted operating income excludes the impact of restructuring and acquisition charges. "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 nine months ended September 30, 2015 and 2014.
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------- -----------------------
($ in millions) 2015 2014 2015 2014
----------- ----------- ----------- -----------
Revenue $ 1,501.3 $ 1,366.0 $ 4,078.2 $ 3,680.6
Gross contract costs (214.0) (185.4) (580.0) (536.3)
----------- ----------- ----------- -----------
Fee revenue $ 1,287.3 $ 1,180.6 $ 3,498.2 $ 3,144.3
----------- ----------- ----------- -----------
Operating expenses $ 1,381.0 $ 1,238.5 $ 3,802.3 $ 3,476.8
Gross contract costs (214.0) (185.4) (580.0) (536.3)
----------- ----------- ----------- -----------
Fee-based operating expenses $ 1,167.0 $ 1,053.1 $ 3,222.3 $ 2,940.5
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Operating income $ 120.3 $ 127.5 $ 275.9 $ 203.8
=========== =========== =========== ===========
Add:
Restructuring and
acquisition charges* 18.1 (2.2) 20.8 39.2
----------- ----------- ----------- -----------
Adjusted operating income $ 138.4 $ 125.3 $ 296.7 $ 243.0
=========== =========== =========== ===========
----------- ----------- ----------- -----------
Adjusted operating income
margin 10.8% 10.6% 8.5% 7.7%
=========== =========== =========== ===========
*See note 4 for more information on restructuring and acquisition charges
2. Net restructuring and acquisition charges are excluded from GAAP net income attributable to common shareholders to arrive at adjusted net income for the three and nine months ended September 30, 2015 and 2014. Adjusted net income in the table below for the three and nine months ended September 30, 2014 no longer incorporates an adjustment to exclude the net intangible amortization related to the 2011 King Sturge acquisition; such amounts were $0.5 million and $1.6 million of amortization expense for the three and nine months ended September 30, 2014, respectively. There was no comparable activity during the three and nine months ended September 30, 2015.
Below are reconciliations of GAAP net income attributable to common shareholders to adjusted net income and calculations of earnings per share for each net income total:
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- ---------------------
($ in millions, except per
share data) 2015 2014 2015 2014
---------- ----------- ---------- ----------
GAAP net income attributable to
common shareholders $ 110.4 $ 104.3 $ 242.5 $ 192.0
Shares (in 000s) 45,453 45,291 45,395 45,242
---------- ----------- ---------- ----------
GAAP diluted earnings per share $ 2.43 $ 2.30 $ 5.34 $ 4.24
========== =========== ========== ==========
GAAP net income attributable to
common shareholders $ 110.4 $ 104.3 $ 242.5 $ 192.0
Restructuring and acquisition
charges, net* 4.0 (1.6) 6.0 3.5
---------- ----------- ---------- ----------
Adjusted net income $ 114.4 $ 102.7 $ 248.5 $ 195.5
Shares (in 000s) 45,453 45,291 45,395 45,242
---------- ----------- ---------- ----------
Adjusted diluted earnings per
share $ 2.52 $ 2.27 $ 5.47 $ 4.32
========== =========== ========== ==========
*See note 4 for more information on restructuring and acquisition charges
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 Nine Months Ended
September 30, September 30,
---------------------- ---------------------
($ in millions) 2015 2014 2015 2014
---------- ----------- ---------- ----------
GAAP net income $ 113.2 $ 104.7 $ 247.9 $ 193.2
Add:
Interest expense, net of
interest income 6.8 7.4 20.4 21.7
Provision for (benefit from)
income taxes 25.7 34.9 71.5 29.9
Depreciation and amortization 26.6 22.0 77.1 67.2
---------- ----------- ---------- ----------
EBITDA $ 172.3 $ 169.0 $ 416.9 $ 312.0
Add:
Restructuring and acquisition
charges 18.1 (2.2) 20.8 39.2
---------- ----------- ---------- ----------
Adjusted EBITDA $ 190.4 $ 166.8 $ 437.7 $ 351.2
========== =========== ========== ==========
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 and acquisition 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.
Restructuring and acquisition charges presented in the Financial Statement Notes for the three and nine months ended September 30, 2014 includes a pre-tax benefit of $2.2 million associated with acquisition-related activity that was presented within Operating, administrative and other expenses in the consolidated statements of operations for the quarter and reclassified for full-year 2014 reporting comparability.
Restructuring and acquisition charges of $18 million in the quarter ended September 30, 2015 include $13 million related to the write-off of an indemnification asset which arose from prior period acquisition activity. This write-off is offset by the recognition of a tax benefit of an equal amount in the provision for income taxes, and therefore has no impact on net income.
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------------- --------------------------
Adjusting Adjusting
($ in millions) GAAP Item Adjusted GAAP Item Adjusted
------- --------- -------- ------- --------- --------
Income before income
taxes and
noncontrolling
interest $ 138.9 $ 12.8 $ 151.7 $ 319.4 $ 12.8 $ 332.2
Provision for income
taxes 25.7 12.8 38.5 71.5 12.8 84.3
------- -------- ------- --------
Net Income $ 113.2 $ 113.2 $ 247.9 $ 247.9
======= ======== ======= ========
Excluding the impact of this item, the adjusted provision for income taxes for the three months ended September 30, 2015 of $38.5 reflects a 25.4 percent effective tax rate on adjusted income before taxes of $151.7 million.
5. 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. LaSalle Investment Management provides investment management services to institutional investors and high-net-worth individuals.
6. 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 September 30, 2015, to be filed with the Securities and Exchange Commission shortly.
7. 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.
8. Certain prior year amounts have been reclassified to conform to the current presentation.
Contact:
Christie B. Kelly
Title: Global Chief Financial Officer
Phone: +1 312 228 2316
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
