CHICAGO, Feb. 1, 2011 /PRNewswire/ -- Jones Lang LaSalle Incorporated today reported net income of $154 million on a U.S. GAAP basis, or $3.48 per share, for the year ended December 31, 2010, compared with a net loss of $4 million, or $0.11 per share, for the year ended December 31, 2009. Adjusting for Restructuring and co-investment charges, full-year 2010 net income would have been $166 million, or $3.77 per share, compared with $70 million, or $1.75 per share, in 2009. Full-year revenue was a record high $2.9 billion, an increase of 18 percent in U.S. dollars, 17 percent in local currency, compared with 2009. The firm's adjusted earnings before interest, taxes, depreciation and amortization ("adjusted EBITDA") were $337 million for the year.
For the quarter ended December 31, 2010, net income was $84 million on a U.S. GAAP basis, or $1.91 per share, compared with $52 million, or $1.19 per share, for the fourth quarter ended December 31, 2009. Adjusting for Restructuring and certain non-cash co-investment charges, fourth-quarter 2010 net income would have been $86 million, or $1.94 per share, compared with fourth-quarter 2009 net income of $63 million, or $1.44 per share, on an adjusted basis. Revenue for the fourth quarter of 2010 was $956 million, a 17 percent increase from $815 million in 2009, 18 percent in local currency. Adjusted EBITDA in the fourth quarter of 2010 was $143 million.
2010 Full-Year Highlights: -- Record high revenue of $2.9 billion, up 18 percent for the year -- Continued transactional revenue improvement; Leasing revenue of $1.0 billion -- Adjusted operating income margin improves to 9.1 percent from 6.6 percent in 2009; adjusted EBITDA margin improves to 11.5 percent -- $5.0 billion of net capital raised by LaSalle Investment Management
Results for full-year 2010 included $6 million of Restructuring charges as well as $10 million of non-cash co-investment charges, compared with $47 million and $51 million in 2009, respectively. Results for the fourth quarter of 2010 included $1 million of Restructuring charges and $1 million of non-cash co-investment charges. Restructuring charges are excluded from segment operating results although they are included for consolidated reporting. The non-cash charges relate primarily to impairments of the firm's investments in real estate ventures and are included in Equity losses at the consolidated and segment reporting levels.
"Our strong fourth-quarter and full-year results were achieved with activity from all our regions as well as LaSalle Investment Management," said Colin Dyer, CEO of Jones Lang LaSalle. "As markets continue to recover, we are working to take additional market share and maintain good growth momentum into 2011," Dyer added.
Business Line Revenue Comparison for the periods ending December 31, 2010 and 2009:
(in millions, "LC" = local currency) Three Months % Ended Dec 31, Change ------------- 2010 2009 In LC ---- ---- ----- Real Estate Services -------------------- Leasing $360.0 $290.0 25% Capital Markets 115.6 81.0 50% Property & Facility Management 216.2 198.0 7% Project & Development Services 99.1 90.7 11% Advisory, Consulting & Other 98.1 91.0 7% ---- ---- Total RES Revenue $889.0 $750.7 18% LaSalle Investment Management ------------------ Advisory fees $61.4 $62.1 (1%) Transaction and Incentive fees 5.9 2.3 126% --- --- Total Investment Management $67.3 $64.4 3% Total Firm Revenue $956.3 $815.1 18% Twelve Months % Ended Dec 31, Change 2010 2009 In LC ----- Real Estate Services -------------------- Leasing $999.9 $783.0 27% Capital Markets 305.7 203.8 51% Property & Facility Management 716.0 627.4 11% Project & Development Services 337.4 311.0 9% Advisory, Consulting & Other 309.5 295.3 5% ----- ----- Total RES Revenue $2,668.5 $2,220.5 18% LaSalle Investment Management ------------------ Advisory fees $237.5 $242.2 (3%) Transaction and Incentive fees 19.6 18.0 2% ---- ---- Total Investment Management $257.1 $260.2 (3%) Total Firm Revenue $2,925.6 $2,480.7 17%
Year-to-date operating expenses excluding Restructuring charges were $2.7 billion, an increase of 14 percent in local currency compared with 2009. On a full-year basis, total compensation as a percentage of firm revenue improved to 64.9 percent, from 65.5 percent in 2009, driven by better productivity across the firm. Full-year adjusted operating income margin, which excludes Restructuring charges, was 9.1 percent, up from 6.6 percent in 2009. Full-year adjusted EBITDA margin was 11.5 percent, up from 9.6 percent in 2009.
Operating expenses excluding Restructuring charges were $832 million for the fourth quarter, compared with $722 million in 2009. On a local currency basis, operating expenses excluding Restructuring charges increased 15 percent over 2009, with increases the result of business growth and performance compensation. Adjusted operating income margin improved to 13.0 percent in the fourth quarter, compared with an 11.4 percent margin in the same period of 2009.
Balance Sheet
In 2010, the firm reduced its net debt position by $250 million, including a reduction in net bank debt of $155 million and a reduction in deferred acquisition obligations of $95 million. The firm's total net debt position at December 31, 2010, was $273 million. The net debt reduction during the year was driven by strong cash flows generated from operations and modest cash outflows due to disciplined capital expenditures, effective tax management and low cash interest expense associated with reduced borrowing levels on the firm's investment-grade balance sheet.
Business Segment Full-Year and Fourth-Quarter Performance Highlights Americas Real Estate Services
Full-year revenue in the Americas region was nearly $1.3 billion, an increase of 22 percent over the prior year, driven by increased transactional activities both in Leasing, which increased 28 percent to $638 million, and Capital Markets and Hotels, which more than doubled to $84 million.
Three Months % Twelve Months % Ended Dec 31, Change Ended Dec 31, Change ------------- Americas (in millions) 2010 2009 In LC 2010 2009 In LC ---- ----- ----- Leasing $228.3 $176.2 30% $637.9 $498.2 28% Capital Markets & Hotels 35.1 13.7 156% 84.1 38.3 120% Property & Facility Management 86.1 79.7 8% 269.4 226.2 19% Project & Development Services 48.1 43.5 11% 158.9 158.0 1% Advisory, Consulting and Other 30.9 31.6 (2%) 110.9 112.0 (1%) ---- ---- ----- ----- Operating revenue $428.5 $344.7 24% $1,261.2 $1,032.7 22% Equity earnings (losses) 0.0 0.0 n/m 0.3 (1.1) n/m --- --- --- ---- Total segment revenue $428.5 $344.7 24% $1,261.5 $1,031.6 22% ====== ====== ======== ======== n/m - not meaningful
Year-to-date operating expenses were $1.1 billion, compared with $945 million for the same period in 2009, an 18 percent increase. Americas operating income margin improved to 11.8 percent, from 8.4 percent in 2009 on a full-year basis. Full-year EBITDA for 2010 was $184 million, a margin of 14.6 percent, compared with $134 million for 2009, a margin of 13.0 percent.
Operating expenses were $359 million in the fourth quarter, 19 percent higher than a year ago, but operating income margin improved to 16.2 percent, from 12.4 percent in the fourth quarter last year. EBITDA for the fourth quarter of 2010 was $79 million, compared with $52 million for the fourth quarter of 2009.
EMEA Real Estate Services
EMEA's full-year revenue was $729 million in 2010 compared with $644 million in 2009, an increase of 13 percent, 17 percent in local currency, with the most significant contribution from Capital Markets and Hotels. Transactional activity improved in the firm's largest European markets. Capital Markets and Hotels momentum picked up in the fourth quarter, driving revenue up 41 percent in local currency compared with the fourth quarter of 2009.
Three Months % Twelve Months % Ended Dec 31, Change Ended Dec 31, Change ------------- EMEA (in millions) 2010 2009 In LC 2010 2009 In LC ---- ----- ----- Leasing $69.3 $70.3 4% $202.6 $172.5 22% Capital Markets & Hotels 52.0 38.8 41% 141.2 107.3 37% Property & Facility Management 40.7 43.9 (3%) 142.9 135.5 8% Project & Development Services 32.2 34.5 0% 115.0 108.8 11% Advisory, Consulting and Other 43.2 40.2 13% 127.2 122.4 7% ---- ---- ----- ----- Operating revenue $237.4 $227.7 10% $728.9 $646.5 17% Equity losses 0.0 (1.8) n/m (0.1) (2.8) n/m --- ---- ---- ---- Total segment revenue $237.4 $225.9 11% $728.8 $643.7 17% ====== ====== ====== ====== n/m - not meaningful
Year-to-date operating expenses were $709 million, an increase of 9 percent, 12 percent in local currency. On a full-year basis, operating income margin was 2.7 percent, compared with an operating loss of 1.5 percent in the prior year. Full-year EBITDA for 2010 was $38 million, a margin of 5.3 percent, compared with $11 million in 2009, a margin of 1.8 percent.
Operating expenses were $217 million in the fourth quarter, an increase of 4 percent from the prior year, 9 percent in local currency, primarily due to increased variable compensation expense related to improved year-over-year performance. Operating income margin in EMEA improved to 8.5 percent in the fourth quarter, from 7.2 percent in 2009. The region's EBITDA for the fourth quarter of 2010 was $26 million, compared with $22 million for the same period last year.
Asia Pacific Real Estate Services
Revenue in the Asia Pacific region was $679 million in 2010, an increase of 26 percent compared with 2009, 17 percent in local currency. The year-over-year increase was principally driven by transactional revenue improvement across most countries in the region compared with a year ago. Fourth-quarter revenue was $223 million, compared with $178 million for the same period in 2009, an increase of 25 percent, 18 percent in local currency.
Three Months % Twelve Months % Ended Dec 31, Change Ended Dec 31, Change ------------- Asia Pacific (in millions) 2010 2009 In LC 2010 2009 In LC ---- ----- ----- Leasing $62.4 $43.5 36% $159.4 $112.3 34% Capital Markets & Hotels 28.5 28.5 (7%) 80.4 58.2 25% Property & Facility Management 89.4 74.4 13% 303.7 265.7 6% Project & Development Services 18.8 12.7 41% 63.5 44.2 35% Advisory, Consulting and Other 24.0 19.2 20% 71.4 60.9 11% ---- ---- ---- ---- Operating revenue $223.1 $178.3 18% $678.4 $541.3 17% Equity earnings (losses) 0.1 0.0 n/m 0.1 (2.4) n/m --- --- --- ---- Total segment revenue $223.2 $178.3 18% $678.5 $538.9 17% ====== ====== ====== ====== n/m - not meaningful
Operating expenses for the region were $629 million for full-year 2010, compared with $507 million in 2009, an increase of 16 percent in local currency. Full-year operating income margin was 7.3 percent, compared with 5.9 percent in 2009. EBITDA for 2010 was $62 million, a margin of 9.2 percent, compared with $44 million in 2009, a margin of 8.2 percent.
Fourth-quarter operating expenses were $198 million, compared with $153 million in 2009, an increase of 22 percent year over year in local currency. The region's EBITDA for the fourth quarter of 2010 was $29 million, consistent with very strong EBITDA in the fourth quarter of 2009.
LaSalle Investment Management
LaSalle Investment Management's full-year Advisory fees were $238 million, compared with $242 million in 2009, a decrease of 3 percent in local currency. Fourth-quarter Advisory fees were $61 million, down 1 percent compared with last year in both U.S. dollars and local currency. Transaction and incentive fees increased to $5.9 million in the fourth quarter versus $2.3 million in the prior year due to increased acquisition levels, bringing the year-to-date fees to $19.6 million.
Three Months % LaSalle Investment Management Ended Dec 31, Change ------------- (in millions) 2010 2009 In LC ---- ---- ----- Advisory fees $61.4 $62.1 (1%) Transaction and Incentive fees 5.9 2.3 126% --- --- Operating revenue $67.3 $64.4 3% Equity losses (0.5) (0.9) n/m ---- ---- Total segment revenue $66.8 $63.5 4% Twelve Months % LaSalle Investment Management Ended Dec 31, Change (in millions) 2010 2009 In LC ----- Advisory fees $237.5 $242.2 (3%) Transaction and Incentive fees 19.6 18.0 2% ---- ---- Operating revenue $257.1 $260.2 (3%) Equity losses (11.7) (52.6) n/m ----- ----- Total segment revenue $245.4 $207.6 16% n/m - not meaningful
Full-year adjusted operating income margin, which excludes non-cash co-investment impairment charges, was 19.1 percent compared with 17.6 percent in 2009.
LaSalle Investment Management raised net capital of $5.0 billion during the year, making 2010 the second-best year of capital raise in LaSalle history. Investments totaled $3.2 billion for the year. At the end of the fourth quarter assets under management were $41.3 billion.
Summary
The firm had a record-setting year of revenue and a strong recovery in profit performance. It finished the year with a strong foundation for future growth and performance. The Americas expanded its market positions, EMEA returned to positive operating income, and Asia Pacific demonstrated continued annuity and transaction revenue growth. LaSalle Investment Management generated healthy margins on its advisory fees and raised significant levels of capital. Profitability improved in all operating segments. The firm is well positioned to take advantage of a consolidating industry and global economic recovery.
About Jones Lang LaSalle
Jones Lang LaSalle 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 2010 global revenue of more than $2.9 billion, Jones Lang LaSalle serves clients in 60 countries from 750 locations worldwide, including 180 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.7 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 more than $41 billion of assets under management. For further information, please visit the company's website, http://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, achievement, and 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, 2009, and in the Quarterly Reports on Form 10-Q for the quarters ended March 31, 2010, June 30, 2010, and September 30, 2010, 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 Wednesday, February 2 at 9:00 a.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: 37984267 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=75940 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 fourth quarter 2010 earnings call has been posted to the Investor Relations section of the company's website: www.joneslanglasalle.com.
Conference Call Replay
Available: 12:00 p.m. EST Wednesday, February 2 through 11:59 p.m. EST Wednesday, February 9 at the following numbers:
-- U.S. callers: +1 800 642 1687 -- International callers: +1 706 645 9291 -- Pass code: 37984267 Web Audio Replay
Audio replay will be available for download or stream within 24 hours of the conference call. This information and link is also available on the company's 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, 2010 and 2009 (in thousands, except share data) (Unaudited) Three Months Ended December 31, ------------------------------- 2010 2009 ---- ---- Revenue $956,253 $815,085 Operating expenses: Compensation and benefits 610,327 519,834 Operating, administrative and other 202,986 183,759 Depreciation and amortization 18,584 18,728 Restructuring charges 885 10,815 --- ------ Total operating expenses 832,782 733,136 ------- ------- Operating income 123,471 81,949 Interest expense, net of interest income 10,063 11,428 Equity losses from unconsolidated ventures (442) (2,637) ---- ------ Income before income taxes and noncontrolling interest 112,966 67,884 Provision for income taxes 28,220 15,483 ------ ------ Net income (loss) 84,746 52,401 Net income attributable to noncontrolling interest 190 147 --- --- Net income (loss) attributable to the Company $84,556 $52,254 ------- ------- Net income (loss) attributable to common shareholders $84,397 $52,026 ------- ------- Basic earnings (loss) per common share $1.98 $1.24 ----- ----- Basic weighted average shares outstanding 42,652,006 41,839,401 ---------- ---------- Diluted earnings (loss) per common share $1.91 $1.19 ----- ----- Diluted weighted average shares outstanding 44,235,319 43,670,994 ---------- ---------- EBITDA $141,264 $97,665 -------- ------- Twelve Months Ended December 31, -------------------------------- 2010 2009 ---- ---- Revenue $2,925,613 $2,480,736 Operating expenses: Compensation and benefits 1,899,181 1,623,795 Operating, administrative and other 687,815 609,779 Depreciation and amortization 71,573 83,335 Restructuring charges 6,386 47,423 ----- ------ Total operating expenses 2,664,955 2,364,332 --------- --------- Operating income 260,658 116,404 Interest expense, net of interest income 45,802 55,018 Equity losses from unconsolidated ventures (11,380) (58,867) ------- ------- Income before income taxes and noncontrolling interest 203,476 2,519 Provision for income taxes 49,038 5,677 ------ ----- Net income (loss) 154,438 (3,158) Net income attributable to noncontrolling interest 537 437 --- --- Net income (loss) attributable to the Company $153,901 $(3,595) -------- ------- Net income (loss) attributable to common shareholders $153,524 $(4,109) -------- ------- Basic earnings (loss) per common share $3.63 $(0.11) ----- ------ Basic weighted average shares outstanding 42,295,526 38,543,087 ---------- ---------- Diluted earnings (loss) per common share $3.48 $(0.11) ----- ------ Diluted weighted average shares outstanding 44,084,154 38,543,087 ---------- ---------- EBITDA $319,937 $139,921 -------- -------- Please reference attached financial statement notes. JONES LANG LASALLE INCORPORATED Segment Operating Results For the Three and Twelve Months Ended December 31, 2010 and 2009 (in thousands) (Unaudited) Three Months Ended December 31, ------------------ 2010 2009 ---- ---- REAL ESTATE SERVICES AMERICAS Revenue: Operating revenue $428,431 $344,662 Equity earnings (losses) 30 40 --- --- 428,461 344,702 Operating expenses: Compensation, operating and administrative expenses 349,751 292,502 Depreciation and amortization 9,179 9,414 ----- ----- 358,930 301,916 Operating income $69,531 $42,786 ======= ======= EBITDA $78,710 $52,200 ------- ------- EMEA Revenue: Operating revenue $237,397 $227,692 Equity losses (21) (1,807) --- ------ 237,376 225,885 Operating expenses: Compensation, operating and administrative expenses 211,755 204,161 Depreciation and amortization 5,529 5,400 ----- ----- 217,284 209,561 Operating income (loss) $20,092 $16,324 ======= ======= EBITDA $25,621 $21,724 ------- ------- ASIA PACIFIC Revenue: Operating revenue $223,135 $178,329 Equity earnings (losses) 55 - --- --- 223,190 178,329 Operating expenses: Compensation, operating and administrative expenses 194,528 149,443 Depreciation and amortization 3,062 3,287 ----- ----- 197,590 152,730 Operating income $25,600 $25,599 ======= ======= EBITDA $28,662 $28,886 ------- ------- LASALLE INVESTMENT MANAGEMENT Revenue: Operating revenue $67,290 $64,402 Equity losses (506) (870) ---- ---- 66,784 63,532 Operating expenses: Compensation, operating and administrative expenses 57,279 57,488 Depreciation and amortization 814 626 --- --- 58,093 58,114 Operating income (loss) $8,691 $5,418 ====== ====== EBITDA $9,505 $6,044 ------ ------ Total segment revenue 955,811 812,448 Reclassification of equity losses (442) (2,637) Total revenue $956,253 $815,085 ======== ======== Total operating expenses before restructuring charges 831,897 722,321 Operating income before restructuring charges $124,356 $92,764 ======== ======= Twelve Months Ended December 31, ------------------- 2010 2009 ---- ---- REAL ESTATE SERVICES AMERICAS Revenue: Operating revenue $1,261,178 $1,032,784 Equity earnings (losses) 310 (1,141) --- ------ 1,261,488 1,031,643 Operating expenses: Compensation, operating and administrative expenses 1,077,556 897,891 Depreciation and amortization 35,594 47,526 ------ ------ 1,113,150 945,417 Operating income $148,338 $86,226 ======== ======= EBITDA $183,932 $133,752 -------- -------- EMEA Revenue: Operating revenue $728,838 $646,505 Equity losses (66) (2,747) --- ------ 728,772 643,758 Operating expenses: Compensation, operating and administrative expenses 690,427 632,387 Depreciation and amortization 18,778 21,041 ------ ------ 709,205 653,428 Operating income (loss) $19,567 $(9,670) ======= ======= EBITDA $38,345 $11,371 ------- ------- ASIA PACIFIC Revenue: Operating revenue $678,452 $541,233 Equity earnings (losses) 55 (2,371) --- ------ 678,507 538,862 Operating expenses: Compensation, operating and administrative expenses 616,101 494,574 Depreciation and amortization 13,010 12,485 ------ ------ 629,111 507,059 Operating income $49,396 $31,803 ======= ======= EBITDA $62,406 $44,288 ------- ------- LASALLE INVESTMENT MANAGEMENT Revenue: Operating revenue $257,145 $260,214 Equity losses (11,679) (52,608) ------- ------- 245,466 207,606 Operating expenses: Compensation, operating and administrative expenses 202,912 208,722 Depreciation and amortization 4,191 2,283 ----- ----- 207,103 211,005 Operating income (loss) $38,363 $(3,399) ======= ======= EBITDA $42,554 $(1,116) ------- ------- Total segment revenue 2,914,233 2,421,869 Reclassification of equity losses (11,380) (58,867) Total revenue $2,925,613 $2,480,736 ========== ========== Total operating expenses before restructuring charges 2,658,569 2,316,909 Operating income before restructuring charges $267,044 $163,827 ======== ======== Please reference attached financial statement notes. JONES LANG LASALLE INCORPORATED Consolidated Balance Sheets December 31, 2010 and December 31, 2009 (in thousands) December 31, 2010 December 31, (Unaudited) 2009 ----------- ---- ASSETS ------ Current assets: Cash and cash equivalents $251,897 $69,263 Trade receivables, net of allowances 721,486 669,993 Notes and other receivables 76,374 73,984 Prepaid expenses 41,195 35,689 Deferred tax assets 82,740 82,793 Other 21,149 8,196 ------ ----- Total current assets 1,194,841 939,918 Property and equipment, net of accumulated depreciation 198,685 213,708 Goodwill, with indefinite useful lives 1,444,708 1,441,951 Identified intangibles, with finite useful lives, net of accumulated amortization 29,025 36,791 Investments in real estate ventures 174,578 167,310 Long-term receivables 42,735 52,941 Deferred tax assets 149,020 139,406 Other 116,269 104,908 ------- ------- Total assets $3,349,861 $3,096,933 ========== ========== LIABILITIES AND EQUITY ---------------------- Current liabilities: Accounts payable and accrued liabilities $400,681 $347,650 Accrued compensation 554,841 479,628 Short-term borrowings 28,700 23,399 Deferred tax liabilities 3,942 1,164 Deferred income 45,146 38,575 Deferred business acquisition obligations 163,656 106,330 Other 99,346 98,349 ------ ------ Total current liabilities 1,296,312 1,095,095 Noncurrent liabilities: Credit facilities 197,500 175,000 Deferred tax liabilities 15,450 3,210 Deferred compensation 15,130 27,039 Pension liabilities 5,031 8,210 Deferred business acquisition obligations 134,889 287,259 Minority shareholder redemption liability 34,118 32,475 Other 79,496 86,031 ------ ------ Total liabilities 1,777,926 1,714,319 Company shareholders' equity: Common stock, $.01 par value per share, 100,000,000 shares authorized; 42,659,999 and 41,843,947 shares issued and outstanding as of December 31, 2010, and December 31, 2009, respectively 427 418 Additional paid-in capital 883,046 854,227 Retained earnings 676,397 531,456 Shares held in trust (6,263) (5,196) Accumulated other comprehensive income (loss) 15,324 (1,976) ------ ------ Total Company shareholders' equity 1,568,931 1,378,929 Noncontrolling interest 3,004 3,685 ----- ----- Total equity 1,571,935 1,382,614 Total liabilities and equity $3,349,861 $3,096,933 ========== ========== Please reference attached financial statement notes. JONES LANG LASALLE INCORPORATED Summarized Consolidated Statements of Cash Flows For the Twelve Months Ended December 31, 2010 and 2009 (in thousands) (Unaudited) Twelve Months Ended December 31, ----------------------------- 2010 2009 ---- ---- Cash provided by operating activities $384,270 $250,554 Cash used in investing activities (196,674) (109,932) Cash used in financing activities (4,962) (117,252) Net increase in cash and cash equivalents 182,634 23,370 Cash and cash equivalents, beginning of period 69,263 45,893 Cash and cash equivalents, end of period $251,897 $69,263 ======== ======= Please reference attached financial statement notes. JONES LANG LASALLE INCORPORATED Financial Statement Notes
1. Charges excluded from GAAP net income (loss) to arrive at adjusted net income for the quarters and years ended December 31, 2010, and December 31, 2009, respectively, are primarily severance costs and non-cash charges related to co-investments. Below are reconciliations of GAAP net income (loss) to adjusted net income and calculations of earnings (loss) per share ("EPS") for each net income (loss) total (in millions after tax, except per share):
Three Months Ended Twelve Months Ended December 31, December 31, ------------ 2010 2009 2010 2009 ---- ---- ---- ---- GAAP net income (loss) $84.4 $52.0 $153.5 $(4.1) Shares (in 000's) 44,235 43,671 44,084 38,543 ------ ------ ------ ------ GAAP earnings (loss) per share $1.91 $1.19 $3.48 $(0.11) ===== ===== ===== ====== GAAP net income (loss) $84.4 $52.0 $153.5 $(4.1) Restructuring, net of tax 0.7 8.1 4.9 35.6 Non-cash co-investment charges, net of tax 0.7 2.8 7.9 38.5 --- --- --- ---- Adjusted net income 85.8 62.9 166.3 70.0 Shares (in 000's) 44,235 43,671 44,084 40,106 ------ ------ ------ ------ Adjusted earnings per share $1.94 $1.44 $3.77 $1.75 ===== ===== ===== =====
Basic shares outstanding are used in the calculation of full-year 2009 GAAP EPS as the use of dilutive shares outstanding would cause that EPS calculation to be anti-dilutive.
2. Adjusted EBITDA represents EBITDA adjusted for Restructuring and non-cash co-investment charges. EBITDA represents earnings before interest expense, net of interest income, income taxes, depreciation and amortization. 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. The firm believes that adjusted EBITDA and EBITDA are indicators of ability to service existing debt, to sustain potential future increases in debt and to satisfy capital requirements. EBITDA is also used in the calculations of certain covenants related to the firm's revolving credit facility. However, adjusted EBITDA and EBITDA should not be considered as alternatives either to net income (loss) or net cash provided by operating activities, both of which are 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 (loss) to EBITDA and adjusted EBITDA (in thousands):
Three Months Ended Twelve Months Ended December 31, December 31, ------------ 2010 2009 2010 2009 ---- ---- ---- ---- Net income (loss) $84,397 $52,026 $153,524 $(4,109) Add: Interest expense, net of interest income 10,063 11,428 45,802 55,018 Provision for income taxes 28,220 15,483 49,038 5,677 Depreciation and amortization 18,584 18,728 71,573 83,335 ------ ------ ------ ------ EBITDA $141,264 $97,665 $319,937 $139,921 ======== ======= ======== ======== Add: Non-cash co-investment charges 901 3,650 10,433 51,225 Restructuring 885 10,815 6,386 47,423 --- ------ ----- ------ Adjusted EBITDA $143,050 $112,130 $336,756 $238,569 ======== ======== ======== ========
Below is a reconciliation of net cash from operating activities, the most comparable cash flow measure on the consolidated statements of cash flows, to EBITDA and adjusted EBITDA (in thousands):
Three Months Ended Twelve Months Ended December 31, December 31, ------------ ------------ 2010 2009 2010 2009 ---- ---- ---- ---- Net cash provided by operating activities $276,198 $206,693 $384,270 $250,554 Add (deduct): Interest expense, net of interest income 10,063 11,428 45,802 55,018 Change in working capital and non-cash expenses (173,217) (135,939) (159,173) (171,328) Provision for income taxes 28,220 15,483 49,038 5,677 ------ ------ ------ ----- EBITDA $141,264 $97,665 $319,937 $139,921 ======== ======= ======== ======== Add: Non-cash co- investment charges 901 3,650 10,433 51,225 Restructuring 885 10,815 6,386 47,423 --- ------ ----- ------ Adjusted EBITDA $143,050 $112,130 $336,756 $238,569 ======== ======== ======== ========
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 management; and advisory, consulting and valuation 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, 2010, to be filed with the Securities and Exchange Commission.
6. EMEA refers to Europe, Middle East, and Africa. MENA refers to Middle East and North Africa.
7. Certain prior year amounts have been reclassified to conform to the current presentation.
Jones Lang LaSalle
CONTACT: Lauralee Martin, Chief Operating and Financial Officer,
+1-312-228-2073
Web Site: http://www.joneslanglasalle.com/
