Jones Lang LaSalle Reports First-Quarter 2011 Results

CHICAGO, April 26, 2011 /PRNewswire/ -- Jones Lang LaSalle Incorporated (NYSE: JLL) today reported net income of $1.5 million on a U.S. GAAP basis, or $0.03 per share, for the quarter ended March 31, 2011, compared with net income of $0.2 million on a U.S. GAAP basis, or $0.01 per share, for the quarter ended March 31, 2010. Revenue for the first quarter of 2011 was $688 million, an increase of 18 percent in U.S. dollars, 16 percent in local currency, compared with the first quarter of 2010. The firm's earnings before interest, taxes, depreciation and amortization ("EBITDA") were $28 million for the first quarter of 2011 compared with EBITDA of $29 million for the same period in 2010.

First-Quarter 2011 Highlights: Solid revenue growth; transaction pipelines strengthening in all regions Robust Americas Leasing performance with revenue up 35 percent LaSalle Investment Management raised $1.5B of net capital commitments Semi-annual dividend increased to $0.15 per share, from $0.10 per share

"Positive year-over-year revenue performance continued in the first quarter with good momentum building in our businesses," said Colin Dyer, President and Chief Executive Officer of Jones Lang LaSalle. "Our healthy new business pipelines across the globe make usoptimistic about our revenue and profit prospects as we move into the seasonally stronger quarters of the year," Dyer added.

Consolidated Business Line Revenue Comparison (in millions)
	Three Months Ended March 31,			Percentage Change
	2011		2010	% in USD	% in LC
Real Estate Services ("RES")
Leasing	$ 210.1		$ 170.4	23%	22%
Capital Markets & Hotels	66.0		52.3	26%	22%
Property & Facility Management	186.5		160.5	16%	12%
Project & Development Services	93.7		68.2	37%	36%
Advisory, Consulting and Other	64.9		63.9	2%	0%
Total RES revenue	$ 621.2		$ 515.3	21%	18%
LaSalle Investment Management
Advisory fees	$ 61.3		$ 58.4	5%	2%
Transaction and Incentive fees	5.4		7.0	(23%)	(27%)
Total LaSalle Investment Management	$ 66.7		$ 65.4	2%	(1%)
Total firm revenue	$ 687.9		$ 580.7	18%	16%

Operating expenses were $676 million for the first quarter, an increase of 20 percent, 18 percent in local currency, compared with operating expenses excluding Restructuring charges in 2010. The year-over-year increase was principally driven by variable costs to support revenue growth and by certain unusual expense items. These unusual items, while not classified as Restructuring charges, totaled more than $9 million and included accelerated compensation costs from acquisitions, reserves for third-party claims and a large contribution to Japanese disaster relief. Since the unusual items were incurred in the firm's seasonally slowest quarter of the year, they impacted operating income and EBITDA margins more significantly than if they had been incurred in a later quarter.

Balance Sheet and Dividend

The firm's net debt position, which includes deferred acquisition obligations, decreased by $184 million compared with March 31, 2010, to $512 million. Outstanding debt on the firm's long-term credit facility decreased by $57 million compared with a year ago, to $278 million at quarter end.

The firm announced that its Board of Directors declared a semi-annual dividend of $0.15 per share, an increase from the $0.10 per share dividend payment made in December 2010. The dividend payment will be made on June 15, 2011, to holders of record at the close of business on May 16, 2011.

Business Segment First-Quarter Performance Highlights

Americas Real Estate Services

First-quarter revenue in the Americas region was $288 million, an increase of $60 million, or 26 percent, over the prior year. Leasing revenue grew 35 percent, demonstrating the strength and scale of Americas' leasing business. Capital Markets and Hotels also generated strong growth in the quarter, more than doubling to $20 million.

	Three Months Ended March 31,			Percentage Change
Americas (in millions)	2011		2010	% in USD	% in LC
Leasing	$ 143.1		$ 106.2	35%	34%
Capital Markets & Hotels	19.8		9.5	108%	107%
Property & Facility Management	66.7		58.2	15%	14%
Project & Development Services	37.2		31.5	18%	18%
Advisory, Consulting and Other	20.7		22.8	(9%)	(10%)
Operating revenue	$ 287.5		$ 228.2	26%	26%
Equity earnings	0.6		0.2	n/m	n/m
Total segment revenue	$ 288.1		$ 228.4	26%	26%
n/m - not meaningful

Operating expenses were $279 million in the first quarter, 27 percent higher than a year ago. The increase was largely due to higher incentive compensation expense and, to a lesser extent, the accounting treatment of approximately $3 million of accelerated compensation costs associated with acquisitions. Variable operating expenses such as Travel & Entertainment and Marketing also were higher as revenue-generating activities increased commensurate with stronger pipelines of future business. EBITDA increased to $19 million from $18 million in the first quarter of 2010.

EMEA Real Estate Services

EMEA's revenue in the first quarter of 2011 was $168 million compared with $151 million in 2010, an increase of 11 percent, 10 percent in local currency. The most significant component of the revenue increase was in Project & Development Services ("PDS"), which includes the Tetris fit-out business where gross contracts include subcontractor costs. Market recoveries across the region continued to be mixed, resulting in varied performance from one country to the next. Performance in our three biggest countries, Germany, England and France, continued to be strong.

	Three Months Ended March 31,			Percentage Change
EMEA (in millions)	2011		2010	% in USD	% in LC
Leasing	$ 37.2		$ 38.8	(4%)	(5%)
Capital Markets & Hotels	28.7		26.2	10%	6%
Property & Facility Management	35.9		34.5	4%	2%
Project & Development Services	38.4		26.0	48%	47%
Advisory, Consulting and Other	28.0		25.9	8%	7%
Operating revenue	$ 168.2		$ 151.4	11%	10%
Equity losses	(0.1)		-	n/m	n/m
Total segment revenue	$ 168.1		$ 151.4	11%	10%
n/m - not meaningful

Operating expenses were $181 million in the first quarter, an increase of 13 percent from the prior year, 11 percent in local currency. Subcontractor costs related to the PDS business line increased more than $8 million compared to the prior year. Variable compensation, driven by higher revenue, and operating costs, driven by a greater level of revenue-generating activities, also contributed to the increase. EBITDA was a loss of $8 million, compared with a loss of $5 million in the first quarter of 2010.

Asia Pacific Real Estate Services

Revenue in Asia Pacific was $165 million for the first quarter of 2011, compared with $136 million for the same period in 2010, an increase of 22 percent, 15 percent in local currency. The year-over-year increase was largely driven by growth in India, Greater China and Australia.

	Three Months Ended March 31,			Percentage Change
Asia Pacific (in millions)	2011		2010	% in USD	% in LC
Leasing	$ 29.8		$ 25.4	17%	11%
Capital Markets & Hotels	17.5		16.6	5%	(1%)
Property & Facility Management	83.9		67.8	24%	16%
Project & Development Services	18.1		10.7	69%	62%
Advisory, Consulting and Other	16.2		15.2	7%	1%
Operating revenue	$ 165.5		$ 135.7	22%	15%
Equity earnings	-		-	n/m	n/m
Total segment revenue	$ 165.5		$ 135.7	22%	15%
n/m - not meaningful

Operating expenses for the region were $160 million for the quarter, an increase of 23 percent, 15 percent in local currency on a year-over-year basis. The increase was principally due to staff and vendor costs that related to a higher volume of PDS work as well as other corporate client activities. Unusual expense items related to the region included the firm's $1.3 million donation for disaster relief in Japan. EBITDA totaled $8 million, consistent with the first quarter of 2010.

LaSalle Investment Management

LaSalle Investment Management's first-quarter Advisory fees were $61 million, 5 percent higher compared with the first quarter of 2010, primarily related to favorable valuation increases in the securities business. The business also recognized $2 million of Transaction fees from asset purchases in the first quarter of 2011.

LaSalle	Three Months Ended March 31,			Percentage Change
Investment Management (in millions)	2011		2010	% in USD	% in LC
Advisory fees	$ 61.3		$ 58.4	5%	2%
Transaction and Incentive fees	5.4		7.0	(23%)	(27%)
Operating revenue	$ 66.7		$ 65.4	2%	(1%)
Equity losses	(2.5)		(6.3)	n/m	n/m
Total revenue	$ 64.2		$ 59.1	9%	5%
n/m - not meaningful

During the quarter, LaSalle Investment Management raised $1.5 billion of net equity, primarily in equity commitments from separate account clients and in the public securities business. Assets under management were $43.0 billion, compared with $41.3 billion at December 31, 2010. EBITDA was $10 million, an increase from $9 million in the first quarter of 2010.

Summary

The firm's revenue growth momentum continued in the first quarter of 2011 and prospects for the remainder of 2011 are positive. The firm's corporate clients are showing increased confidence to make decisions, pipelines are robust and LaSalle continues to perform well and raise capital. The balance sheet remains strong and the firm is well positioned to take advantage of a consolidating industry.

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 2010 global revenue of more than $2.9 billion, Jones Lang LaSalle serves clients in 60 countries from 1,000 locations worldwide, including 185 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.8 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 $43 billion of assets under management. For further information, please visit the company's 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 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 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, and in other reports filed with the Securities and Exchange Commission. There can be no assurance that future dividends will be declared since the actual declaration of future dividends, and the establishment of record and payment dates, remains subject to final determination by the Company's Board of Directors. Statements speak only as of the date of this release. Jones Lang LaSalle expressly disclaims any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect any change in Jones Lang LaSalle's expectations or results, or any change in events.

Conference Call

The firm will conduct a conference call for shareholders, analysts and investment professionals on Wednesday, April 27 at 9:00 a.m. EDT.

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: [phone] International callers: [phone] Pass code: 59542775

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=78464 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 [e-mail]

Supplemental Information

Supplemental information regarding the first quarter 2011 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. EDT Wednesday, April 27 through 11:59 p.m. EDT May 4 at the following numbers:

U.S. callers:[phone] International callers:[phone] Pass code: 59542775

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 [phone].

JONES LANG LASALLE INCORPORATED
Consolidated Statements of Operations
For the Three Months Ended March 31, 2011 and 2010
(in thousands, except share data)
(Unaudited)
			Three Months Ended March 31,
			2011		2010
Revenue			$ 687,864		$ 580,662
Operating expenses:
	Compensation and benefits		461,357		387,381
	Operating, administrative and other		196,126		156,453
	Depreciation and amortization		18,315		17,713
	Restructuring charges		-		1,120
		Total operating expenses	675,798		562,667
		Operating income	12,066		17,995
Interest expense, net of interest income			7,963		11,330
Equity losses from unconsolidated ventures			(1,971)		(6,127)
Income before income taxes and noncontrolling interest			2,132		538
Provision for income taxes			533		124
Net income			1,599		414
Net income attributable to noncontrolling interest			109		168
Net income attributable to the Company			$ 1,490		$ 246
Net income attributable to common shareholders			$ 1,490		$ 246
Basic earnings per common share			$ 0.03		$ 0.01
Basic weighted average shares outstanding			42,846,799		41,913,100
Diluted earnings per common share			$ 0.03		$ 0.01
Diluted weighted average shares outstanding			44,359,055		43,949,850
EBITDA			$ 28,301		$ 29,413
Please reference attached financial statement notes.

JONES LANG LASALLE INCORPORATED
Segment Operating Results
For the Three Months Ended March 31, 2011 and 2010
(in thousands)
(Unaudited)
			Three Months Ended March 31,
			2011		2010
REAL ESTATE SERVICES
AMERICAS
	Revenue:
		Operating revenue	$ 287,445		$ 228,199
		Equity earnings	653		205
			288,098		228,404
	Operating expenses:
		Compensation, operating and administrative expenses	269,557		210,450
		Depreciation and amortization	9,908		8,856
			279,465		219,306
		Operating income	$ 8,633		$ 9,098
		EBITDA	$ 18,541		$ 17,954
EMEA
	Revenue:
		Operating revenue	$ 168,245		$ 151,405
		Equity losses	(113)		(18)
			168,132		151,387
	Operating expenses:
		Compensation, operating and administrative expenses	176,310		156,259
		Depreciation and amortization	4,909		4,719
			181,219		160,978
		Operating loss	$ (13,087)		$ (9,591)
		EBITDA	$ (8,178)		$ (4,872)
ASIA PACIFIC
	Revenue:
		Operating revenue	$ 165,450		$ 135,645
		Equity earnings	-		-
			165,450		135,645
	Operating expenses:
		Compensation, operating and administrative expenses	156,999		127,099
		Depreciation and amortization	2,945		3,239
			159,944		130,338
		Operating income	$ 5,506		$ 5,307
		EBITDA	$ 8,451		$ 8,546
LASALLE INVESTMENT MANAGEMENT
	Revenue:
		Operating revenue	$ 66,724		$ 65,413
		Equity losses	(2,511)		(6,314)
			64,213		59,099
	Operating expenses:
		Compensation, operating and administrative expenses	54,618		50,026
		Depreciation and amortization	552		899
			55,170		50,925
		Operating income	$ 9,043		$ 8,174
		EBITDA	$ 9,595		$ 9,073
		Total segment revenue	685,893		574,535
		Reclassification of equity losses	(1,971)		(6,127)
		Total revenue	$ 687,864		$ 580,662
		Total operating expenses before restructuring charges	675,798		561,547
		Operating income before restructuring charges	$ 12,066		$ 19,115
Please reference attached financial statement notes.

JONES LANG LASALLE INCORPORATED
Consolidated Balance Sheets
March 31, 2011, December 31, 2010 and March 31, 2010
(in thousands)
			March 31,				March 31,
			2011		December 31,		2010
			(Unaudited)		2010		(Unaudited)
ASSETS
Current assets:
	Cash and cash equivalents		$ 100,951		$ 251,897		$ 59,720
	Trade receivables, net of allowances		698,292		721,486		595,767
	Notes and other receivables		89,703		76,374		83,131
	Warehouse receivables		113,257		-		-
	Prepaid expenses		38,577		41,195		31,963
	Deferred tax assets		78,359		82,740		79,634
	Other		15,889		21,149		14,286
		Total current assets	1,135,028		1,194,841		864,501
Property and equipment, net of accumulated depreciation			202,774		198,685		200,674
Goodwill, with indefinite useful lives			1,479,418		1,444,708		1,422,745
Identified intangibles, with finite useful lives, net of accumulated amortization			29,189		29,025		33,833
Investments in real estate ventures			178,158		174,578		168,750
Long-term receivables			59,263		42,735		50,168
Deferred tax assets			144,081		149,020		139,565
Other			119,719		116,269		101,557
		Total assets	$ 3,347,630		$ 3,349,861		$ 2,981,793
LIABILITIES AND EQUITY
Current liabilities:
	Accounts payable and accrued liabilities		$ 335,228		$ 400,681		$ 299,556
	Accrued compensation		354,898		554,841		275,747
	Short-term borrowings		42,517		28,700		46,669
	Deferred tax liabilities		3,942		3,942		1,164
	Deferred income		44,506		45,146		32,646
	Deferred business acquisition obligations		153,540		163,656		97,577
	Warehouse facility		113,257		-		-
	Other		117,467		99,346		108,815
		Total current liabilities	1,165,355		1,296,312		862,174
Noncurrent liabilities:
	Credit facilities		278,000		197,500		334,999
	Deferred tax liabilities		18,103		15,450		5,504
	Deferred compensation		9,963		15,130		18,776
	Pension liabilities		4,741		5,031		6,854
	Deferred business acquisition obligations		138,784		134,889		275,619
	Minority shareholder redemption liability		33,775		34,118		32,918
	Other		83,882		79,496		78,427
		Total liabilities	1,732,603		1,777,926		1,615,271
Company shareholders' equity:
	Common stock, $.01 par value per share, 100,000,000 shares authorized;
	42,910,988, 42,659,999 and 42,033,336 shares issued and outstanding as of
	March 31, 2011, December 31, 2010, and March 31, 2010, respectively		429		427		420
	Additional paid-in capital		889,118		883,046		861,898
	Retained earnings		677,887		676,397		531,703
	Shares held in trust		(6,270)		(6,263)		(5,003)
	Accumulated other comprehensive income (loss)		50,709		15,324		(26,164)
		Total Company shareholders' equity	1,611,873		1,568,931		1,362,854
	Noncontrolling interest		3,154		3,004		3,668
		Total equity	1,615,027		1,571,935		1,366,522
		Total liabilities and equity	$ 3,347,630		$ 3,349,861		$ 2,981,793
Please reference attached financial statement notes.

JONES LANG LASALLE INCORPORATED Summarized Consolidated Statements of Cash Flows For the Three Months Ended March 31, 2011 and 2010 (in thousands) (Unaudited)
	Three Months Ended March 31,
	2011		2010
Cash used in operating activities	$ (197,179)		$ (146,332)
Cash used in investing activities	(31,587)		(23,784)
Cash provided by financing activities	77,820		160,573
Net decrease in cash and cash equivalents	(150,946)		(9,543)
Cash and cash equivalents, beginning of period	251,897		69,263
Cash and cash equivalents, end of period	$ 100,951		$ 59,720
Please reference attached financial statement notes.

JONES LANG LASALLE INCORPORATED
Financial Statement Notes

1. EBITDA represents earnings before interest expense, net of interest income, income taxes, depreciation and amortization. Although EBITDA is a non-GAAP financial measure, it is used extensively by management and is useful to investors and lenders as a metric for evaluating operating performance and liquidity. The firm believes that EBITDA is an indicator 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, EBITDA should not be considered as an alternative either to net income or net cash used in operating activities, both of which are determined in accordance with GAAP. Because EBITDA is not calculated under GAAP, the firm's EBITDA may not be comparable to similarly titled measures used by other companies.

Below is a reconciliation of net income to EBITDA (in thousands):

		Three Months Ended
		March 31,
		2011		2010
Net income		$ 1,490		$ 246
Add:
Interest expense, net of interest income		7,963		11,330
Provision for income taxes		533		124
Depreciation and amortization		18,315		17,713
EBITDA		$ 28,301		$ 29,413

Below is a reconciliation of net cash used in operating activities, the most comparable cash flow measure on the consolidated statements of cash flows, to EBITDA (in thousands):

		Three Months Ended
		March 31,
		2011		2010
Net cash used in operating activities		$ (197,179)		$ (146,332)
Add:
Interest expense, net of interest income		7,963		11,330
Change in working capital and non-cash expenses		216,984		164,291
Provision for income taxes		533		124
EBITDA		$ 28,301		$ 29,413

2. 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.

3. 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.

4. 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 March 31, 2011, to be filed with the Securities and Exchange Commission shortly.

5. 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.

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

SOURCEJones Lang LaSalle