JONES LANG LASALLE INCORPORATED 
By CHICAGO, Jan. 31, 2012 /PRNewswire/ -- Jones Lang LaSalle Incorporated (NYSE: JLL) today reported record revenue for the year ended December 31, 2011.
-- Consolidated revenue for the year increased 23 percent to $3.6 billion
-- Adjusted net income for the year rose 29 percent to $215 million
-- Americas continued delivery of strong revenue growth
-- Leasing revenue up 19 percent to $760 million for the year
-- EMEA finished the year with robust performance and successful King
Sturge integration
-- Capital Markets & Hotels revenue increased 62 percent for the year,
and nearly doubled in the fourth quarter compared with a year ago
-- Asia Pacific's contributions to the Global Corporate Solutions business
drove strong recurring revenue growth
-- Property & Facility Management revenue up 20 percent to $365 million
for the year
Three Months Twelve Months
Summary Financial Results Ended Ended
($ in millions, except per share
data) December 31, December 31,
------------ ------------
2011 2010 2011 2010
---- ---- ---- ----
Revenue $1,148 $956 $3,585 $2,926
Adjusted Net Income (A) $114 $86 $215 $166
U.S. GAAP Net Income $85 $84 $164 $154
Adjusted Earnings per Share (A) $2.56 $1.94 $4.83 $3.77
Earnings per Share $1.91 $1.91 $3.70 $3.48
Adjusted EBITDA (A) $179 $143 $395 $337
------------------- ---- ---- ---- ----
(A) See footnotes to financial statements for calculation of adjustments
to U.S. GAAP Net Income, Earnings per Share and EBITDA.
"Our strong finish to the year closed out a solid 2011 performance of record revenue and robust profit growth coupled with significantly strengthened market positions across the firm," said Colin Dyer, President and Chief Executive Officer. "These results and the strategic actions we took during the year position us for continued growth and success in 2012," Dyer added.
Consolidated Business Line Revenue Comparison
Consolidated revenue grew 23 percent for the year, 19 percent in local currency, driven by double-digit growth in all three geographic segments and the acquisition of King Sturge completed in EMEA during the second quarter of 2011. Strong conversion of the firm's business pipelines drove growth in the transactional businesses of Leasing and Capital Markets, while Property & Facility Management revenue increased with ongoing success in corporate outsourcing. LaSalle Investment Management, which continued to perform well for its clients within a mixed investment environment, delivered solid results.
Consolidated Three Months Twelve Months
Revenue Ended Ended
($ in
millions,
"LC" =
local
currency) December 31, % December 31, %
------------ ------------
2011 2010 Change 2011 2010 Change
---- ---- in LC ---- ---- in LC
----- -----
Real
Estate
Services
("RES")
---------
Leasing $408.5 $359.7 14% $1,188.6 $999.9 17%
Capital
Markets
& Hotels 173.3 116.4 50% 460.0 306.9 45%
Property
&
Facility
Management 256.5 215.8 18% 853.0 715.4 15%
Project &
Development
Services 126.9 99.1 29% 441.8 337.4 28%
Advisory,
Consulting
and Other 120.5 98.0 26% 369.5 308.9 17%
----- ---- ----- -----
Total RES
Revenue $1,085.7 $889.0 23% $3,312.9 $2,668.5 21%
LaSalle
Investment
Management
-----------
Advisory
Fees $60.1 $61.4 (2%) $245.0 $237.5 (1%)
Transaction
Fees &
Other 2.3 3.9 (39%) 7.3 8.2 (16%)
Incentive
Fees 0.1 2.0 n/m 19.3 11.4 63%
--- --- ---- ----
Total
LaSalle
Investment
Management
Revenue $62.5 $67.3 (7%) $271.6 $257.1 2%
Total
Firm
Revenue $1,148.2 $956.3 21% $3,584.5 $2,925.6 19%
-------- ------ -------- --------
n/m - not meaningful
Operating expenses, excluding Restructuring and acquisition charges, were $3.3 billion for the year, an increase of 23 percent, 20 percent in local currency, compared with $2.7 billion in 2010. The increase was driven by higher variable compensation resulting from improved transactional revenue and by variable costs to support client wins and to continue building the firm's pipeline for 2012.
Full-year results included $56 million of Restructuring and acquisition charges, of which $16 million related to employee retention, and $11 million of intangible amortization related to the addition of King Sturge. Restructuring and acquisition charges are excluded from segment operating results, although they are included for consolidated reporting. Intangible amortization from King Sturge is included in Depreciation and amortization in the firm's consolidated results, as well as in EMEA's segment results.
Fourth-quarter operating expenses, excluding Restructuring and acquisition charges, were $1.0 billion, an increase of 20 percent in both U.S. dollars and local currency compared with the fourth quarter of 2010.
Interest Expense and Credit Facility
Net interest expense for 2011 was $36 million, compared with $46 million in 2010. Outstanding debt on the firm's $1.1 billion long-term credit facility was $463 million as of December 31, 2011. During the fourth quarter, the firm reduced its total net debt position by more than $180 million.
Business Segment Performance Highlights
Americas Real Estate Services
Full-year revenue in the Americas region was $1.5 billion, an increase of $264 million, or 21 percent, over the prior year. The growth was led by Capital Markets & Hotels and Leasing. Fourth-quarter revenue in the region was $510 million, compared with $429 million in the fourth quarter of 2010, an increase of 19 percent.
Americas Three Months Twelve Months
Revenue Ended % Ended %
($ in
millions,
"LC" =
local
currency) December 31, December 31,
------------ ------------
2011 2010 Change 2011 2010 Change
---- ---- in LC ---- ---- in LC
----- -----
Leasing $258.4 $228.9 13% $760.2 $639.1 19%
Capital
Markets
& Hotels 48.2 35.1 38% 136.1 84.1 62%
Property
&
Facility
Management 115.2 85.7 35% 335.6 268.8 24%
Project &
Development
Services 54.4 48.1 14% 178.5 158.9 12%
Advisory,
Consulting
and Other 33.3 30.7 8% 112.2 110.3 2%
---- ---- ----- -----
Operating
Revenue $509.5 $428.5 19% $1,522.6 $1,261.2 21%
Equity
Earnings - - n/m 2.7 0.3 n/m
Total
Segment
Revenue $509.5 $428.5 19% $1,525.3 $1,261.5 21%
------ ------ -------- --------
Operating expenses were $1.4 billion for the year, a 22 percent increase over the prior year. The increase was impacted by higher commission expense related to the higher Leasing and Capital Markets & Hotels revenue, as well as increases in gross contract vendor costs related to corporate client activities in Property & Facility Management, $16 million of which was added in the fourth quarter. Americas operating income improved to $163 million for the year, from $148 million in 2010, while operating income margin was 10.7 percent in 2011 compared with 11.8 percent in 2010.
Operating expenses were $425 million for the fourth quarter, 18 percent more than a year ago. Operating income margin improved to 16.6 percent from 16.2 percent in the fourth quarter last year.
EBITDA for the year to date and quarter ended December 31, 2011, was $201 million and $94 million, compared with $184 million and $79 million, respectively. EBITDA margin was 13.2 percent for full-year 2011.
EMEA Real Estate Services
EMEA's revenue in 2011 was $974 million, compared with $729 million in 2010, an increase of 34 percent, 29 percent in local currency, the result of strong growth in Capital Markets & Hotels and Advisory revenue and the successful integration of King Sturge. Fourth-quarter revenue in the region was $340 million, compared with $237 million in 2010, an increase of 43 percent, 45 percent in local currency.
Three
Months Twelve Months
EMEA Revenue Ended % Ended %
($ in millions, "LC" = December
local currency) 31, December 31,
--------- ------------
2011 2010 Change 2011 2010 Change
in in
---- ---- LC ---- ---- LC
Leasing $81.0 $69.3 19% $236.1 $202.6 13%
Capital Markets &
Hotels 103.1 52.0 101% 229.1 141.2 57%
Property & Facility
Management 42.4 40.7 6% 152.8 142.9 3%
Project & Development
Services 51.6 32.2 62% 182.5 115.0 52%
Advisory, Consulting
and Other 62.2 43.2 46% 173.5 127.2 32%
---- ---- ----- -----
Operating Revenue $340.3 $237.4 45% $974.0 $728.9 29%
Equity Losses - - n/m (0.3) (0.1) n/m
-----
Total Segment Revenue $340.3 $237.4 45% $973.7 $728.8 29%
------ ------ ------ ------
n/m - not meaningful
Operating expenses, which include seven months of King Sturge ongoing operating expenses and $11 million of King Sturge intangibles amortization, were $946 million for the year, an increase of 33 percent from the prior year, 29 percent in local currency. Gross contract vendor costs related to the PDS business line increased by more than $40 million in the year compared with 2010. EMEA's adjusted operating income margin, which excludes the King Sturge intangibles amortization, was 4.0 percent compared with 2.7 percent in 2010.
Fourth-quarter operating expenses were $306 million, an increase of 41 percent, 43 percent in local currency. Adjusted operating income margin, which excludes $5 million of King Sturge intangibles amortization, was 11.4 percent in the quarter compared with 8.5 percent in the same period a year ago.
EBITDA for the year was $57 million, compared with $38 million for 2010. Fourth-quarter EBITDA in 2011 was $43 million, compared with $26 million in the fourth quarter last year.
Asia Pacific Real Estate Services
Revenue in Asia Pacific was $816 million in 2011, compared with $679 million in 2010, an increase of 20 percent, 14 percent in local currency. Continued expansion of the firm's market-leading positions in Greater China and India contributed to increased revenue, as did growth in Property & Facility Management. Fourth-quarter revenue in the region was $236 million in 2011, an increase of 6 percent in both U.S. dollars and local currency compared with the same period in 2010. The Capital Markets & Hotels revenue decrease in the fourth quarter resulted from lower market investment volumes overall and fewer Hotels transactions during the quarter following a very robust start to the year.
Three
Months Twelve Months
Asia Pacific Revenue Ended % Ended %
($ in millions, "LC" = December
local currency) 31, December 31,
--------- ------------
2011 2010 Change 2011 2010 Change
in in
---- ---- LC ---- --- LC
Leasing $69.1 $61.5 13% $192.3 $158.2 16%
Capital Markets &
Hotels 22.0 29.3 (25%) 94.8 81.6 7%
Property & Facility
Management 98.9 89.4 10% 364.6 303.7 13%
Project & Development
Services 20.9 18.8 14% 80.8 63.5 23%
Advisory, Consulting
and Other 25.0 24.1 5% 83.8 71.4 12%
---- ---- ---- ----
Operating Revenue $235.9 $223.1 6% $816.3 $678.4 14%
Equity Earnings - 0.1 n/m 0.2 0.1 n/m
Total Segment Revenue $235.9 $223.2 6% $816.5 $678.5 14%
------ ------ ------ ------
n/m - not meaningful
Operating expenses for the region were $750 million for the year, an increase of 19 percent, 13 percent in local currency, on a year-over-year basis. The increase was primarily due to staff and gross contract vendor costs that related to a higher volume of PDS work, as well as other corporate client activities. Asia Pacific's operating income margin for the year increased to 8.1 percent from 7.3 percent a year ago.
Operating expenses were $211 million for the fourth quarter, compared with $198 million in the fourth quarter of 2010, an increase of 7 percent, 6 percent in local currency. Operating income margin was 10.7 percent in the fourth quarter compared with 11.5 percent for the same period a year ago, resulting from lower Capital Markets & Hotels revenue during the quarter.
The region's EBITDA for the year was $78 million, compared with $62 million in 2010. Fourth-quarter EBITDA in 2011 was $28 million, compared with $29 million for the fourth quarter of 2010.
LaSalle Investment Management
LaSalle Investment Management's full-year Advisory fees were $245 million, compared with $238 million in 2010. Fourth-quarter Advisory fees were $60 million, compared with $61 million in the last quarter of 2010. The business recognized higher incentive fees during the year resulting from investment performance for clients.
Three
LaSalle Investment Months Twelve Months
Management Revenue Ended % Ended %
($ in millions, "LC" = December
local currency) 31, December 31,
-------- ------------
2011 2010 Change 2011 2010 Change
in in
---- ---- LC ---- ---- LC
Advisory Fees $60.1 $61.4 (2%) $245.0 $237.5 (1%)
Transaction Fees & Other 2.3 3.9 (39%) 7.3 8.2 (16%)
Incentive Fees 0.1 2.0 n/m 19.3 11.4 63%
--- --- ---- ----
Operating Revenue $62.5 $67.3 (7%) $271.6 $257.1 2%
Equity Earnings (Losses) 3.7 (0.5) n/m 3.8 (11.7) n/m
Total Segment Revenue $66.2 $66.8 (1%) $275.4 $245.4 8%
----- ----- ------ ------
n/m - not meaningful
LaSalle Investment Management raised nearly $5 billion of net equity in 2011, and assets under management were $47.7 billion at December 31, 2011. EBITDA was $60 million, compared with $43 million for full-year 2010. Fourth-quarter EBITDA was $14 million for 2011, compared with $10 million for the fourth quarter of 2010. The full-year EBITDA margin was 21.7 percent compared with 17.3 percent in 2010.
Summary
The firm finished the year with record consolidated revenue levels and solid performance in each of the geographic segments and LaSalle Investment Management. King Sturge contributed positively to EMEA results, notably in Capital Markets & Hotels and Advisory, and has been successfully integrated into the firm. Within the challenging economic conditions of many of the countries in which we operate, the firm's strong market share and healthy pipelines across most of its businesses provide good momentum and reason for optimism entering 2012.
About Jones Lang LaSalle
Jones Lang LaSalle (NYSE: JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2011 global revenue of $3.6 billion, Jones Lang LaSalle serves clients in 70 countries from more than 1,000 locations worldwide, including 200 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 2.1 billion square feet worldwide. LaSalle Investment Management, the company's investment management business, is one of the world's largest and most diverse in real estate with $47.7 billion of assets under management. For further information, please visit our website, www.joneslanglasalle.com.
200 East Randolph Drive Chicago Illinois 60601 | 22 Hanover Square London W1A 2BN | 9 Raffles Place #39-00 Republic Plaza Singapore 048619
Statements in this press release regarding, among other things, future financial results and performance, achievements, plans and objectives may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance, achievements, plans and objectives of Jones Lang LaSalle to be materially different from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include those discussed under "Business," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Quantitative and Qualitative Disclosures about Market Risk," and elsewhere in Jones Lang LaSalle's Annual Report on Form 10-K for the year ended December 31, 2010, in the Quarterly Reports on Form 10-Q for the quarters ended March 31, 2011, and June 30, 2011, and September 30, 2011, and in other reports filed with the Securities and Exchange Commission. Statements speak only as of the date of this release. Jones Lang LaSalle expressly disclaims any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect any change in Jones Lang LaSalle's expectations or results, or any change in events.
Conference Call
The firm will conduct a conference call for shareholders, analysts and investment professionals on Tuesday, January 31 at 6:00 p.m. EST.
To participate in the teleconference, please dial into one of the following phone numbers five to 10 minutes before the start time:
- U.S. callers: +1 877 800 0896
- International callers: +1 706 679 7364
- Pass code: 41357814
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=84458 and follow instructions
3. Download free Windows Media Player software: (link located under registration form)
4. If you experience problems listening, send an e-mail to prnwebcast@multivu.com
Supplemental Information
Supplemental information regarding the 2011 earnings call has been posted to the Investor Relations section of the company's website: www.joneslanglasalle.com.
Conference Call Replay
Available: 7:00 p.m. EST Tuesday, January 31 through 11:59 p.m. EST February 7 at the following numbers:
- U.S. callers: +1 855 859 2056
- International callers: +1 404 537 3406
- Pass code: 41357814
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.joneslanglasalle.com.
If you have any questions, call Yvonne Peterson of Jones Lang LaSalle's Investor Relations department at +1 312 228 2919.
JONES LANG LASALLE INCORPORATED
Consolidated Statements of Operations
For the Three and Twelve Months Ended
December 31, 2011 and 2010
(in thousands, except share data)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------- --------------------
2011 2010 2011 2010
---- ---- ---- ----
Revenue $1,148,175 $956,253 $3,584,544 $2,925,613
Operating
expenses:
Compensation and
benefits 722,467 610,327 2,330,520 1,899,181
Operating,
administrative
and other 250,173 202,986 863,860 687,815
Depreciation and
amortization 22,333 18,584 82,832 71,573
Restructuring and
acquisition
charges 33,984 885 56,127 6,386
------ --- ------ -----
Total operating
expenses 1,028,957 832,782 3,333,339 2,664,955
--------- ------- --------- ---------
Operating income 119,218 123,471 251,205 260,658
Interest expense,
net of interest
income 8,372 10,063 35,591 45,802
Equity earnings
(losses) from
unconsolidated
ventures 3,704 (442) 6,385 (11,379)
----- ---- ----- -------
Income before
income taxes and
noncontrolling
interest 114,550 112,966 221,999 203,477
Provision for
income taxes 29,525 28,220 56,387 49,038
------ ------ ------ ------
Net income 85,025 84,746 165,612 154,439
Net income
attributable to
noncontrolling
interest 109 190 1,228 537
--- --- ----- ---
Net income
attributable to
the Company $84,916 $84,556 $164,384 $153,902
------- ------- -------- --------
Net income
attributable to
common
shareholders $84,767 $84,397 $163,997 $153,524
------- ------- -------- --------
Basic earnings
per common share $1.95 $1.98 $3.80 $3.63
----- ----- ----- -----
Basic weighted
average shares
outstanding 43,469,543 42,652,006 43,170,383 42,295,526
---------- ---------- ---------- ----------
Diluted earnings
per common share $1.91 $1.91 $3.70 $3.48
----- ----- ----- -----
Diluted weighted
average shares
outstanding 44,402,412 44,235,319 44,367,359 44,084,154
---------- ---------- ---------- ----------
EBITDA $144,997 $141,264 $338,807 $319,937
-------- -------- -------- --------
Please reference attached financial
statement notes.
JONES LANG LASALLE INCORPORATED
Segment Operating Results
For the Three and Twelve Months Ended
December 31, 2011 and 2010
(in thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
------------------ -------------------
December 31, December 31,
------------ ------------
2011 2010 2011 2010
---- ---- ---- ----
REAL
ESTATE
SERVICES
--------
AMERICAS
Revenue:
Operating
revenue $509,480 $428,431 $1,522,607 $1,261,178
Equity
earnings 17 30 2,682 310
--- --- ----- ---
509,497 428,461 1,525,289 1,261,488
Operating
expenses:
Compensation,
operating
and
administrative
expenses 415,375 349,751 1,324,115 1,077,556
Depreciation
and
amortization 9,710 9,179 38,502 35,594
----- ----- ------ ------
425,085 358,930 1,362,617 1,113,150
Operating
income $84,412 $69,531 $162,672 $148,338
======= ======= ======== ========
EBITDA $94,122 $78,710 $201,174 $183,932
------- ------- -------- --------
EMEA
Revenue:
Operating
revenue $340,293 $237,397 $974,014 $728,838
Equity
earnings
(losses) 2 (21) (304) (66)
--- --- ---- ---
340,295 237,376 973,710 728,772
Operating
expenses:
Compensation,
operating
and
administrative
expenses 297,278 211,755 916,412 690,427
Depreciation
and
amortization 9,051 5,529 29,378 18,778
----- ----- ------ ------
306,329 217,284 945,790 709,205
Operating
income $33,966 $20,092 $27,920 $19,567
======= ======= ======= =======
EBITDA $43,017 $25,621 $57,298 $38,345
------- ------- ------- -------
ASIA
PACIFIC
Revenue:
Operating
revenue $235,937 $223,135 $816,301 $678,452
Equity
earnings 28 55 178 55
--- --- --- ---
235,965 223,190 816,479 678,507
Operating
expenses:
Compensation,
operating
and
administrative
expenses 207,796 194,528 738,107 616,101
Depreciation
and
amortization 3,001 3,062 12,203 13,010
----- ----- ------ ------
210,797 197,590 750,310 629,111
Operating
income $25,168 $25,600 $66,169 $49,396
======= ======= ======= =======
EBITDA $28,169 $28,662 $78,372 $62,406
------- ------- ------- -------
LASALLE
INVESTMENT
MANAGEMENT
----------
Revenue:
Operating
revenue $62,465 $67,290 $271,622 $257,145
Equity
earnings
(losses) 3,657 (506) 3,829 (11,678)
----- ---- ----- -------
66,122 66,784 275,451 245,467
Operating
expenses:
Compensation,
operating
and
administrative
expenses 52,192 57,279 215,745 202,912
Depreciation
and
amortization 570 814 2,750 4,191
--- --- ----- -----
52,762 58,093 218,495 207,103
Operating
income $13,360 $8,691 $56,956 $38,364
======= ====== ======= =======
EBITDA $13,930 $9,505 $59,706 $42,555
------- ------ ------- -------
Total
segment
revenue 1,151,879 955,811 3,590,929 2,914,234
Reclassification
of
equity
earnings
(losses) 3,704 (442) 6,385 (11,379)
Total
revenue $1,148,175 $956,253 $3,584,544 $2,925,613
========== ======== ========== ==========
Total
operating
expenses
before
restructuring
and
acquisition
charges 994,973 831,897 3,277,212 2,658,569
Operating
income
before
restructuring
and
acquisition
charges $153,202 $124,356 $307,332 $267,044
======== ======== ======== ========
Please reference attached financial
statement notes.
JONES LANG LASALLE INCORPORATED
Consolidated Balance Sheets
December 31, 2011 and December 31, 2010
(in thousands)
December 31, December 31,
2011 2010
(Unaudited)
-----------
ASSETS
------
Current assets:
Cash and cash equivalents $184,454 $251,897
Trade receivables, net of
allowances 907,772 721,486
Notes and other receivables 97,315 76,374
Prepaid expenses 45,274 41,195
Deferred tax assets 53,553 82,740
Other 12,516 21,149
------ ------
Total current assets 1,300,884 1,194,841
Property and equipment, net of
accumulated depreciation 241,415 198,685
Goodwill, with indefinite useful
lives 1,751,207 1,444,708
Identified intangibles, net of
accumulated amortization 52,590 29,025
Investments in real estate
ventures 224,854 174,578
Long-term receivables 54,840 42,735
Deferred tax assets 186,605 149,020
Other 120,241 116,269
------- -------
Total assets $3,932,636 $3,349,861
========== ==========
LIABILITIES AND EQUITY
----------------------
Current liabilities:
Accounts payable and accrued
liabilities $436,045 $400,681
Accrued compensation 655,658 554,841
Short-term borrowings 65,091 28,700
Deferred tax liabilities 6,044 3,942
Deferred income 58,974 45,146
Deferred business acquisition
obligations 31,164 163,656
Other 95,641 99,346
------ ------
Total current liabilities 1,348,617 1,296,312
Noncurrent liabilities:
Credit facilities 463,000 197,500
Deferred tax liabilities 7,646 15,450
Deferred compensation 10,420 15,130
Pension liabilities 17,233 5,031
Deferred business acquisition
obligations 267,896 134,889
Minority shareholder redemption
liability 18,402 34,118
Other 105,042 79,496
------- ------
Total liabilities 2,238,256 1,777,926
Company shareholders' equity:
Common stock, $.01 par value per share,
100,000,000 shares authorized;
43,470,271 and 42,659,999 shares issued and
outstanding as of
December 31, 2011 and December 31,
2010, respectively 435 427
Additional paid-in capital 904,968 883,046
Retained earnings 827,297 676,397
Shares held in trust (7,814) (6,263)
Accumulated other comprehensive
(loss) income (33,757) 15,324
------- ------
Total Company shareholders' equity 1,691,129 1,568,931
Noncontrolling interest 3,251 3,004
----- -----
Total equity 1,694,380 1,571,935
Total liabilities and equity $3,932,636 $3,349,861
========== ==========
Please reference attached financial statement notes.
JONES LANG LASALLE INCORPORATED
Summarized Consolidated Statements of Cash Flows
For the Twelve Months Ended December 31, 2011 and 2010
(in thousands)
(Unaudited)
Twelve Months Ended December
31,
-----------------------------
2011 2010
---- ----
Cash provided by operating
activities $211,338 $384,270
Cash used in investing
activities (389,316) (90,876)
Cash provided by (used in)
financing activities 110,535 (110,760)
Net (decrease) increase in
cash and cash equivalents (67,443) 182,634
Cash and cash equivalents,
beginning of period 251,897 69,263
Cash and cash equivalents,
end of period $184,454 $251,897
======== ========
Please reference attached financial statement notes.
JONES LANG LASALLE INCORPORATED
Financial Statement Notes
1. Charges excluded from U.S. GAAP ("GAAP") net income
attributable to common shareholders to arrive at
adjusted net income for the quarters and years ended
December 31, 2011, and December 31, 2010, are primarily
Restructuring and acquisition charges, intangible
amortization related to the recent King Sturge
acquisition, and non-cash co-investment charges. Below
are reconciliations of GAAP net income attributable to
common shareholders to adjusted net income and
calculations of earnings per share ("EPS") for each net
income total:
Three Months Twelve Months
Ended Ended
December 31, December 31,
------------
($ in millions, except
per share data) 2011 2010 2011 2010
---- ---- ---- ----
GAAP net income
attributable to
common shareholders $84.8 $84.4 $164.0 $153.5
Shares (in 000s) 44,402 44,235 44,367 44,084
------ ------ ------ ------
GAAP earnings per
share $1.91 $1.91 $3.70 $3.48
===== ===== ===== =====
GAAP net income
attributable to
common shareholders $84.8 $84.4 $164.0 $153.5
Restructuring and
acquisition charges,
net 25.2 0.7 41.9 4.9
Intangible
amortization, net 3.6 - 8.6 -
Non-cash co-
investment charges,
net - 0.7 - 7.9
--- ---
Adjusted net income 113.6 85.8 214.5 166.3
Shares (in 000s) 44,402 44,235 44,367 44,084
Adjusted earnings per
share $2.56 $1.94 $4.83 $3.77
===== ===== ===== =====
2. Adjusted EBITDA represents earnings before interest
expense, net of interest income, income taxes,
depreciation and amortization, adjusted for Restructuring
and acquisition charges, and non-cash co-investment
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 Ended Twelve Months Ended
December 31, December 31,
------------
2011 2010 2011 2010
---- ---- ---- ----
Net income
attributable
to common
shareholders $84,767 $84,396 $163,997 $153,522
Add:
Interest
expense,
net of
interest
income 8,372 10,063 35,591 45,802
Provision
for income
taxes 29,525 28,220 56,387 49,038
Depreciation
and
amortization 22,333 18,584 82,832 71,573
EBITDA $144,997 $141,263 $338,807 $319,935
======== ======== ======== ========
Add:
Restructuring
and
acquisition
charges 33,984 885 56,127 6,386
Non-cash
co-
investment
charges - 901 - 10,433
Adjusted
EBITDA $178,981 $143,049 $394,934 $336,754
======== ======== ======== ========
3. For purposes of segment operating results, the
allocation of restructuring charges to the segments has
been determined to not be meaningful to investors, so the
performance of segment results has been evaluated without
allocation of these charges.
4. 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.
5. The consolidated statements of cash flows are presented
in summarized form. For complete consolidated statements
of cash flows, please refer to the firm's Annual Report
on Form 10-K for the year ended December 31, 2011, to be
filed with the Securities and Exchange Commission
shortly.
6. 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.
7. Certain prior year amounts have been reclassified to
conform to the current presentation.
Contact: Lauralee Martin
Chief Operating and Financial
Title: Officer
Phone: +1 312 228 2073
SOURCE Jones Lang LaSalle
