CHICAGO, July 26, 2011 /PRNewswire/ -- Jones Lang LaSalle Incorporated (NYSE: JLL) today reported net income of $44 million on a U.S. GAAP basis, or $0.99 per share, for the quarter ended June 30, 2011, compared with net income of $32 million on a U.S. GAAP basis, or $0.72 per share, for the quarter ended June 30, 2010. Adjusting for Restructuring and acquisition charges and certain other impacts of purchase accounting, net income would have been $50 million or $1.12 per share for the second quarter of 2011, compared with adjusted net income of $37 million or $0.83 per share in 2010. The firm's adjusted earnings before interest, taxes, depreciation and amortization ("adjusted EBITDA") were $94 million for the second quarter of 2011 compared with adjusted EBITDA of $78 million for the same period in 2010. Revenue for the second quarter of 2011 was $845 million, an increase of 24 percent in U.S. dollars, 17 percent in local currency, compared with the second quarter of 2010.
On a year-to-date basis net income was $45 million, or $1.02 per share, compared with net income of $32 million, or $0.73 per share, for the first six months of 2010. Adjusting for Restructuring and acquisition charges and certain other impacts of purchase accounting, net income would have been $51 million or $1.15 per share for the first half of 2011, compared with adjusted net income of $43 million for the same period of 2010. Adjusted EBITDA on a year-to-date basis was $122 million compared with adjusted EBITDA of $115 million in 2010. Revenue for the first six months of 2011 was $1.5 billion, compared with $1.3 billion in 2010, an increase of 22 percent, 17 percent in local currency.
Second-Quarter 2011 Highlights:
- Solid transactional revenue growth continues
- Outstanding performance in Asia Pacific, led by Greater China, India and Australia
- Successful completion of King Sturge acquisition increases strength and depth in EMEA
Second-quarter results included $6 million of Restructuring and acquisition charges and $2 million of intangible amortization related to the King Sturge acquisition completed in EMEA. Restructuring and acquisition charges are excluded from segment operating results although they are included for consolidated reporting. Intangible amortization is included in Depreciation and amortization in the firm's consolidated results as well as in EMEA's segment results.
"We are pleased to report another quarter of solid revenue growth," said Colin Dyer, President and Chief Executive Officer of Jones Lang LaSalle. "While thecyclical recovery in global real estate markets continues, business confidence is being tested internationally by concerns over government finances. We expect to continue to grow our market share worldwide and remain positive on our prospects for the seasonally stronger second half," Dyer added.
Consolidated Business Line Revenue Comparison (in millions, "LC" = local currency)
Three Months | % Change | Six Months Ended June 30, | % Change | |||||
2011 | 2010 | in LC | 2011 | 2010 | in LC | |||
Real Estate Services ("RES") | ||||||||
Leasing | $ 281.4 | $ 234.4 | 16% | $ 491.2 | $ 404.7 | 19% | ||
Capital Markets & Hotels | 103.6 | 63.6 | 49% | 169.7 | 115.9 | 37% | ||
Property & Facility Management | 197.4 | 168.4 | 10% | 383.8 | 328.7 | 11% | ||
Project & Development Services | 107.2 | 80.8 | 24% | 200.9 | 149.1 | 29% | ||
Advisory, Consulting and Other | 89.4 | 73.7 | 15% | 154.5 | 137.8 | 8% | ||
Total RES revenue | 779.0 | 620.9 | 19% | 1,400.1 | 1,136.2 | 18% | ||
LaSalle Investment Management | ||||||||
Advisory fees | $ 64.7 | $ 56.0 | 8% | $ 126.0 | $ 114.4 | 5% | ||
Transaction and Incentive fees | 1.6 | 3.4 | (59%) | 7.1 | 10.4 | (38%) | ||
Total LaSalle Investment | $ 66.3 | $ 59.4 | 4% | $ 133.1 | $ 124.8 | 1% | ||
Total Firm Revenue | $ 845.3 | $ 680.3 | 17% | $1,533.2 | $1,261.0 | 17% | ||
Operating expenses excluding Restructuring and acquisition charges were $774 million for the second quarter, an increase of 19 percent in local currency, compared with operating expenses of $619 million for the same period in 2010. Similar to the first quarter of 2011, the year-over-year increase was principally driven by variable costs to support revenue growth and build the firm's pipeline for the second half of the year. The firm maintained its 64.4 percent total compensation to revenue ratio in the second quarter.
Year-to-date operating expenses excluding Restructuring and acquisition charges were $1.4 billion, an increase of 18 percent in local currency compared with the first half of 2010.
Balance Sheet
The firm's net debt position, which includes deferred acquisition obligations, increased by $184 million compared with June 30, 2010, to $832 million, primarily due to funding the King Sturge acquisition in EMEA during the second quarter of 2011. Outstanding debt on the firm's long-term credit facility was $444 million at quarter end.
During the second quarter, the firm announced that it had amended its $1.1 billion long-term credit facility. Among other items, the amendment reset pricing with initial pricing of LIBOR + 1.625 percent, extended the maturity to June 2016 and provided for add-backs to EBITDA for acquisition-related expenses. The firm anticipates making the second deferred payment related to the Staubach acquisition of $150 million in the third quarter of 2011.
Business Segment Second-Quarter and Year-to-Date Performance Highlights
Americas Real Estate Services
Second-quarter revenue in the Americas region was $348 million, an increase of $53 million, or 17 percent in local currency, over the prior year, led by Leasing and by Capital Markets & Hotels, which more than doubled to $32 million. Year-to-date revenue in the region was $636 million in 2011 compared with $524 million in 2010, an increase of 21 percent.
Three Months | % Change | Six Months Ended June 30, | % Change | |||||
Americas (in millions) | 2011 | 2010 | in LC | 2011 | 2010 | in LC | ||
Leasing | $ 171.7 | $ 151.4 | 13% | $ 314.8 | $ 257.6 | 22% | ||
Capital Markets & Hotels | 31.7 | 14.3 | 121% | 51.5 | 23.8 | 116% | ||
Property & Facility Management | 74.2 | 62.4 | 18% | 141.0 | 120.4 | 16% | ||
Project & Development Services | 40.8 | 38.5 | 5% | 78.0 | 70.1 | 11% | ||
Advisory, Consulting and Other | 28.0 | 28.9 | (3%) | 48.6 | 51.8 | (6%) | ||
Operating revenue | $ 346.4 | $ 295.5 | 17% | $ 633.9 | $ 523.7 | 21% | ||
Equity earnings | 2.0 | - | n/m | 2.6 | 0.2 | n/m | ||
Total segment revenue | $ 348.4 | $ 295.5 | 17% | $ 636.5 | $ 523.9 | 21% | ||
n/m - not meaningful | ||||||||
Operating expenses were $316 million in the second quarter, 20 percent higher than a year ago, 19 percent in local currency. Year-to-date operating expenses were $595 million, compared with $482 million for the same period in 2010, an increase of 23 percent in U.S. dollars and local currency. Included in operating expenses were costs related to new business generation, such as travel and marketing, which will contribute to seasonal revenue growth in the second half of the year, as well as higher costs for service level requirements of several recent business wins. Operating income margin in the region decreased by 1.7 percent year over year in the second quarter of 2011.
EBITDA for the second quarter was $42 million, compared with $41 million for the same period last year. Year-to-date EBITDA for 2011 was $61 million, compared with $59 million for the first six months of 2010.
EMEA Real Estate Services
EMEA's revenue in the second quarter of 2011 was $218 million compared with $171 million in 2010, an increase of 28 percent, 15 percent in local currency. The most significant component of the revenue increase was in Project & Development Services ("PDS"), which includes the region's fit-out business where gross contracts include subcontractor costs. PDS revenue increased 49 percent in local currency compared with the second quarter of 2010. Year-to-date revenue in the region was $386 million in 2011, compared with $322 million in 2010, an increase of 20 percent, 13 percent in local currency.
Three Months | % Change | Six Months Ended June 30, | % Change | |||||
EMEA (in millions) | 2011 | 2010 | in LC | 2011 | 2010 | in LC | ||
Leasing | $ 60.5 | $ 46.8 | 18% | $ 97.6 | $ 85.5 | 8% | ||
Capital Markets & Hotels | 38.1 | 32.0 | 5% | 66.7 | 58.2 | 5% | ||
Property & Facility Management | 34.4 | 35.1 | (12%) | 70.3 | 69.6 | (5%) | ||
Project & Development Services | 46.2 | 27.6 | 49% | 84.6 | 53.6 | 48% | ||
Advisory, Consulting and Other | 39.0 | 29.2 | 24% | 67.2 | 55.3 | 16% | ||
Operating revenue | $218.2 | $170.7 | 16% | $386.4 | $322.2 | 13% | ||
Equity loss | (0.2) | - | n/m | (0.3) | - | n/m | ||
Total segment revenue | $218.0 | $170.7 | 15% | $386.1 | $322.2 | 13% | ||
n/m - not meaningful | ||||||||
Operating expenses, including $2 million of King Sturge intangibles amortization, were $212 million in the second quarter, an increase of 28 percent from the prior year, 19 percent in local currency. Subcontractor costs related to the PDS business line increased by more than $10 million compared with the prior year. Year-to-date operating expenses were $393 million, an increase of 21 percent, 15 percent in local currency.
On May 31, 2011, the firm completed the merger with international property consultancy King Sturge. The merger greatly enhances the firm's strength and depth of service capabilities for clients across the EMEA region.
EBITDA for the second quarter was $12 million, compared with $10 million for the same period last year. Year-to-date EBITDA for 2011 was $4 million, compared with $5 million for the first six months of 2010.
Asia Pacific Real Estate Services
Revenue in Asia Pacific was $215 million for the second quarter of 2011, compared with $155 million for the same period in 2010, an increase of 39 percent, 26 percent in local currency. The year-over-year increase was largely driven by growth in Greater China, India and Australia. Year-to-date revenue in the region was $380 million in 2011, an increase of 31 percent compared with the same period in 2010, 21 percent in local currency.
Three Months | % Change | Six Months Ended June 30, | % Change | |||||
Asia Pacific (in millions) | 2011 | 2010 | in LC | 2011 | 2010 | in LC | ||
Leasing | $ 49.2 | $ 36.2 | 25% | $ 78.8 | $ 61.6 | 19% | ||
Capital Markets & Hotels | 33.8 | 17.3 | 71% | 51.5 | 33.9 | 37% | ||
Property & Facility Management | 88.8 | 70.9 | 14% | 172.5 | 138.7 | 15% | ||
Project & Development Services | 20.2 | 14.7 | 27% | 38.3 | 25.4 | 42% | ||
Advisory, Consulting and Other | 22.4 | 15.6 | 32% | 38.7 | 30.7 | 17% | ||
Operating revenue | $214.4 | $154.7 | 26% | $379.8 | $290.3 | 21% | ||
Equity earnings | 0.1 | - | n/m | 0.1 | - | n/m | ||
Total segment revenue | $214.5 | $154.7 | 26% | $379.9 | $290.3 | 21% | ||
n/m - not meaningful | ||||||||
Operating expenses for the region were $193 million for the quarter, an increase of 34 percent, 22 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. Operating expenses were $353 million for the first half of 2011, compared with $274 million in 2010, an increase of 29 percent, 19 percent in local currency.
The region's EBITDA for the second quarter of 2011 was $25 million, compared with $14 million for the second quarter of 2010. Year-to-date EBITDA for 2011 was $33 million compared with $23 million for the first six months of 2010.
LaSalle Investment Management
LaSalle Investment Management's second-quarter Advisory fees were $65 million, 16 percent higher than a year ago, 8 percent in local currency, driven primarily by a higher level of assets under management in the public securities business. Year-to-date Advisory fees were $126 million, compared with $114 million through the first six months of 2010, an increase of 10 percent, 5 percent in local currency. The business recognized $1 million of Transaction fees from asset purchases and $2 million of equity earnings during the quarter.
LaSalle Investment Management | Three Months | % Change | Six Months Ended June 30, | % Change | ||||
(in millions) | 2011 | 2010 | in LC | 2011 | 2010 | in LC | ||
Advisory fees | $ 64.7 | $ 56.0 | 8% | $ 126.0 | $ 114.4 | 5% | ||
Transaction and Incentive fees | 1.6 | 3.4 | (59%) | 7.1 | 10.4 | (38%) | ||
Operating revenue | $ 66.3 | $ 59.4 | 4% | $ 133.1 | $ 124.8 | 1% | ||
Equity earnings (losses) | 2.3 | (2.8) | n/m | (0.3) | (9.1) | n/m | ||
Total segment revenue | $ 68.6 | $ 56.6 | 13% | $132.8 | $ 115.7 | 9% | ||
n/m - not meaningful | ||||||||
During the quarter, LaSalle Investment Management raised $2.3 billion of net equity, primarily in the public securities business. Assets under management were $45.3 billion, up from $43.0 billion in the first quarter of 2011. EBITDA was $16 million, compared with $10 million in the second quarter of 2010. Year-to-date EBITDA was $26 million for 2011, compared with $19 million for the first six months of 2010.
Summary
The firm generated solid revenue and profit growth in the second quarter. The successful completion of the King Sturge acquisition during the quarter demonstrates the firm's focus on enhancing its service capabilities in key markets. Despite caution in a number of geographies due to slower economic growth and concern over government finances, the cyclical recovery in real estate continues and the firm expects to grow market positions and expand share during the remainder of 2011.
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 70 countries from 1,000 locations worldwide, including more than 200 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 $45.3 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, 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, 2010, and in the Quarterly Report on Form 10-Q for the quarter ended March 31, 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 Wednesday, July 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: +1 877 800 0896
- International callers: +1 706 679 7364
- Pass code: 83343411
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=80962 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 second-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, July 27 through 11:59 p.m. EDT August 3 at the following numbers:
- U.S. callers: +1 855 859 2056
- International callers: +1 404 537 3406
- Pass code: 83343411
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 Six Months Ended June 30, 2011 and 2010 (in thousands, except share data) (Unaudited) | ||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||
Revenue | $ 845,295 | $ 680,319 | $ 1,533,157 | $ 1,260,981 | ||||||||||
Operating expenses: | ||||||||||||||
Compensation and benefits | 544,222 | 438,408 | 1,005,578 | 825,789 | ||||||||||
Operating, administrative and other | 210,044 | 163,042 | 406,169 | 319,495 | ||||||||||
Depreciation and amortization | 19,350 | 17,532 | 37,665 | 35,246 | ||||||||||
Restructuring and acquisition charges | 6,112 | 3,996 | 6,112 | 5,116 | ||||||||||
Total operating expenses | 779,728 | 622,978 | 1,455,524 | 1,185,646 | ||||||||||
Operating income | 65,567 | 57,341 | 77,633 | 75,335 | ||||||||||
Interest expense, net of interest income | 9,589 | 12,918 | 17,552 | 24,248 | ||||||||||
Equity earnings (losses) from unconsolidated ventures | 4,138 | (2,796) | 2,168 | (8,924) | ||||||||||
Income before income taxes and noncontrolling interest | 60,116 | 41,627 | 62,249 | 42,163 | ||||||||||
Provision for income taxes | 15,029 | 9,574 | 15,562 | 9,698 | ||||||||||
Net income | 45,087 | 32,053 | 46,687 | 32,465 | ||||||||||
Net income attributable to noncontrolling interest | 991 | 78 | 1,101 | 246 | ||||||||||
Net income attributable to the Company | $ 44,096 | $ 31,975 | $ 45,586 | $ 32,219 | ||||||||||
Net income attributable to common shareholders | $ 43,860 | $ 31,757 | $ 45,350 | $ 32,001 | ||||||||||
Basic earnings per common share | $ 1.02 | $ 0.76 | $ 1.06 | $ 0.76 | ||||||||||
Basic weighted average shares outstanding | 42,933,918 | 42,037,112 | 42,890,599 | 41,975,448 | ||||||||||
Diluted earnings per common share | $ 0.99 | $ 0.72 | $ 1.02 | $ 0.73 | ||||||||||
Diluted weighted average shares outstanding | 44,473,320 | 44,249,698 | 44,390,612 | 44,085,326 | ||||||||||
EBITDA | $ 87,828 | $ 71,781 | $ 116,129 | $ 101,193 | ||||||||||
Please reference attached financial statement notes. | ||||||||||||||
JONES LANG LASALLE INCORPORATED Segment Operating Results For the Three and Six Months Ended June 30, 2011 and 2010 (in thousands) (Unaudited) | |||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||
REAL ESTATE SERVICES | |||||||||||||
AMERICAS | |||||||||||||
Revenue: | |||||||||||||
Operating revenue | $ 346,407 | $ 295,485 | $ 633,854 | $ 523,683 | |||||||||
Equity earnings | 1,980 | 36 | 2,632 | 241 | |||||||||
348,387 | 295,521 | 636,486 | 523,924 | ||||||||||
Operating expenses: | |||||||||||||
Compensation, operating and administrative expenses | 306,353 | 254,217 | 575,908 | 464,666 | |||||||||
Depreciation and amortization | 9,558 | 8,861 | 19,466 | 17,718 | |||||||||
315,911 | 263,078 | 595,374 | 482,384 | ||||||||||
Operating income | $ 32,476 | $ 32,443 | $ 41,112 | $ 41,540 | |||||||||
EBITDA | $ 42,034 | $ 41,304 | $ 60,578 | $ 59,258 | |||||||||
EMEA | |||||||||||||
Revenue: | |||||||||||||
Operating revenue | $ 218,178 | $ 170,762 | $ 386,421 | $ 322,167 | |||||||||
Equity losses | (197) | (15) | (309) | (33) | |||||||||
217,981 | 170,747 | 386,112 | 322,134 | ||||||||||
Operating expenses: | |||||||||||||
Compensation, operating and administrative expenses | 205,970 | 160,554 | 382,279 | 316,814 | |||||||||
Depreciation and amortization | 5,593 | 4,308 | 10,503 | 9,027 | |||||||||
211,563 | 164,862 | 392,782 | 325,841 | ||||||||||
Operating income (loss) | $ 6,418 | $ 5,885 | $ (6,670) | $ (3,707) | |||||||||
EBITDA | $ 12,011 | $ 10,193 | $ 3,833 | $ 5,320 | |||||||||
ASIA PACIFIC | |||||||||||||
Revenue: | |||||||||||||
Operating revenue | $ 214,378 | $ 154,704 | $ 379,827 | $ 290,349 | |||||||||
Equity earnings | 94 | - | 94 | - | |||||||||
214,472 | 154,704 | 379,921 | 290,349 | ||||||||||
Operating expenses: | |||||||||||||
Compensation, operating and administrative expenses | 189,749 | 140,494 | 346,748 | 267,592 | |||||||||
Depreciation and amortization | 3,129 | 3,094 | 6,074 | 6,333 | |||||||||
192,878 | 143,588 | 352,822 | 273,925 | ||||||||||
Operating income | $ 21,594 | $ 11,116 | $ 27,099 | $ 16,424 | |||||||||
EBITDA | $ 24,723 | $ 14,210 | $ 33,173 | $ 22,757 | |||||||||
LASALLE INVESTMENT MANAGEMENT | |||||||||||||
Revenue: | |||||||||||||
Operating revenue | $ 66,332 | $ 59,368 | $ 133,055 | $ 124,782 | |||||||||
Equity earnings (losses) | 2,261 | (2,817) | (249) | (9,132) | |||||||||
68,593 | 56,551 | 132,806 | 115,650 | ||||||||||
Operating expenses: | |||||||||||||
Compensation, operating and administrative expenses | 52,194 | 46,184 | 106,812 | 96,211 | |||||||||
Depreciation and amortization | 1,070 | 1,270 | 1,622 | 2,169 | |||||||||
53,264 | 47,454 | 108,434 | 98,380 | ||||||||||
Operating income | $ 15,329 | $ 9,097 | $ 24,372 | $ 17,270 | |||||||||
EBITDA | $ 16,399 | $ 10,367 | $ 25,994 | $ 19,439 | |||||||||
Total segment revenue | 849,433 | 677,523 | 1,535,325 | 1,252,057 | |||||||||
Reclassification of equity earnings (losses) | 4,138 | (2,796) | 2,168 | (8,924) | |||||||||
Total revenue | $ 845,295 | $ 680,319 | $ 1,533,157 | $ 1,260,981 | |||||||||
Total operating expenses before restructuring and acquisition charges | 773,616 | 618,982 | 1,449,412 | 1,180,530 | |||||||||
Operating income before restructuring and acquisition charges | $ 71,679 | $ 61,337 | $ 83,745 | $ 80,451 | |||||||||
Please reference attached financial statement notes. | |||||||||||||
JONES LANG LASALLE INCORPORATED Consolidated Balance Sheets June 30, 2011, December 31, 2010 and June 30, 2010 (in thousands) | |||||||||||
June 30, | June 30, | ||||||||||
2011 | December 31, | 2010 | |||||||||
(Unaudited) | 2010 | (Unaudited) | |||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ 95,615 | $ 251,897 | $ 54,994 | ||||||||
Trade receivables, net of allowances | 749,395 | 721,486 | 621,523 | ||||||||
Notes and other receivables | 113,019 | 76,374 | 80,035 | ||||||||
Warehouse receivables | 25,430 | - | - | ||||||||
Prepaid expenses | 48,647 | 41,195 | 41,729 | ||||||||
Deferred tax assets | 78,711 | 82,740 | 79,985 | ||||||||
Other | 11,416 | 21,149 | 16,443 | ||||||||
Total current assets | 1,122,233 | 1,194,841 | 894,709 | ||||||||
Property and equipment, net of accumulated depreciation | 226,231 | 198,685 | 192,498 | ||||||||
Goodwill, with indefinite useful lives | 1,775,713 | 1,444,708 | 1,399,668 | ||||||||
Identified intangibles, with finite useful lives, net of accumulated amortization | 59,263 | 29,025 | 30,856 | ||||||||
Investments in real estate ventures | 182,357 | 174,578 | 162,106 | ||||||||
Long-term receivables | 53,308 | 42,735 | 46,376 | ||||||||
Deferred tax assets | 141,934 | 149,020 | 139,283 | ||||||||
Other | 123,910 | 116,269 | 101,642 | ||||||||
Total assets | $ 3,684,949 | $ 3,349,861 | $ 2,967,138 | ||||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and accrued liabilities | $ 370,873 | $ 400,681 | $ 300,903 | ||||||||
Accrued compensation | 378,517 | 554,841 | 302,341 | ||||||||
Short-term borrowings | 45,201 | 28,700 | 63,737 | ||||||||
Deferred tax liabilities | 3,942 | 3,942 | 1,164 | ||||||||
Deferred income | 59,069 | 45,146 | 36,775 | ||||||||
Deferred business acquisition obligations | 186,534 | 163,656 | 92,393 | ||||||||
Warehouse facility | 25,430 | - | - | ||||||||
Other | 91,854 | 99,346 | 105,069 | ||||||||
Total current liabilities | 1,161,420 | 1,296,312 | 902,382 | ||||||||
Noncurrent liabilities: | |||||||||||
Credit facilities | 444,000 | 197,500 | 268,000 | ||||||||
Deferred tax liabilities | 20,051 | 15,450 | 7,797 | ||||||||
Deferred compensation | 10,771 | 15,130 | 21,013 | ||||||||
Pension liabilities | 4,748 | 5,031 | 6,579 | ||||||||
Deferred business acquisition obligations | 252,282 | 134,889 | 279,334 | ||||||||
Minority shareholder redemption liability | 17,329 | 34,118 | 33,273 | ||||||||
Other | 97,505 | 79,496 | 72,448 | ||||||||
Total liabilities | 2,008,106 | 1,777,926 | 1,590,826 | ||||||||
Company shareholders' equity: | |||||||||||
Common stock, $.01 par value per share, 100,000,000 shares authorized; | |||||||||||
42,955,769, 42,659,999 and 42,059,599 shares issued and outstanding as of | |||||||||||
June 30, 2011, December 31, 2010, and June 30, 2010, respectively | 430 | 427 | 421 | ||||||||
Additional paid-in capital | 897,516 | 883,046 | 870,368 | ||||||||
Retained earnings | 715,229 | 676,397 | 559,188 | ||||||||
Shares held in trust | (6,266) | (6,263) | (5,003) | ||||||||
Accumulated other comprehensive income (loss) | 65,448 | 15,324 | (51,532) | ||||||||
Total Company shareholders' equity | 1,672,357 | 1,568,931 | 1,373,442 | ||||||||
Noncontrolling interest | 4,486 | 3,004 | 2,870 | ||||||||
Total equity | 1,676,843 | 1,571,935 | 1,376,312 | ||||||||
Total liabilities and equity | $ 3,684,949 | $ 3,349,861 | $ 2,967,138 | ||||||||
Please reference attached financial statement notes. | |||||||||||
JONES LANG LASALLE INCORPORATED Summarized Consolidated Statements of Cash Flows For the Six Months Ended June 30, 2011 and 2010 (in thousands) (Unaudited) | ||||
Six Months Ended June 30, | ||||
2011 | 2010 | |||
Cash used in operating activities | $ (136,312) | $ (80,363) | ||
Cash used in investing activities | (257,927) | (35,107) | ||
Cash provided by financing activities | 237,957 | 101,201 | ||
Net decrease in cash and cash equivalents | (156,282) | (14,269) | ||
Cash and cash equivalents, beginning of period | 251,897 | 69,263 | ||
Cash and cash equivalents, end of period | $ 95,615 | $ 54,994 | ||
Please reference attached financial statement notes. | ||||
JONES LANG LASALLE INCORPORATED | |
Financial Statement Notes | |
1. Charges excluded from GAAP net income attributable to common shareholders to arrive at adjusted net income for the three and six-month periods ended June 30, 2011, and June 30, 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 Ended | Six Months Ended | |||||||
June 30, | June 30, | |||||||
($ in millions, except per share data) | 2011 | 2010 | 2011 | 2010 | ||||
GAAP net income attributable to common shareholders | $ 43.9 | $ 31.8 | $ 45.3 | $ 32.0 | ||||
Shares (in 000s) | 44,473 | 44,250 | 44,391 | 44,085 | ||||
GAAP earnings per share | $ 0.99 | $ 0.72 | $ 1.02 | $ 0.73 | ||||
GAAP net income attributable to common shareholders | $ 43.9 | $ 31.8 | $ 45.3 | $ 32.0 | ||||
Restructuring and acquisition charges, net | 4.6 | 3.1 | 4.6 | 3.9 | ||||
Intangible amortization, net | 1.2 | - | 1.2 | - | ||||
Non-cash co-investment charges, net | - | 1.7 | - | 6.7 | ||||
Adjusted net income | 49.7 | 36.6 | 51.1 | 42.6 | ||||
Shares (in 000s) | 44,473 | 44,250 | 44,391 | 44,085 | ||||
Adjusted earnings per share | $ 1.12 | $ 0.83 | $ 1.15 | $ 0.97 | ||||
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. 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 or net cash provided by (used in) 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 to EBITDA and adjusted EBITDA (in thousands):
Three Months Ended | Six Months Ended | |||||||
June 30, | June 30, | |||||||
2011 | 2010 | 2011 | 2010 | |||||
Net income attributable to common shareholders | $43,860 | $31,757 | $45,350 | $32,001 | ||||
Add: | ||||||||
Interest expense, net of interest income | 9,589 | 12,918 | 17,552 | 24,248 | ||||
Provision for income taxes | 15,029 | 9,574 | 15,562 | 9,698 | ||||
Depreciation and amortization | 19,350 | 17,532 | 37,665 | 35,246 | ||||
EBITDA | $87,828 | $71,781 | $116,129 | $101,193 | ||||
Add: | ||||||||
Restructuring and acquisition charges | 6,112 | 3,996 | 6,112 | 5,116 | ||||
Non-cash co-investment charges | - | 2,188 | - | 8,656 | ||||
Adjusted EBITDA | $93,940 | $77,965 | $122,241 | $114,965 | ||||
Below is a reconciliation of net cash provided by (used in) 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 | Six Months Ended | |||||||
June 30, | June 30, | |||||||
2011 | 2010 | 2011 | 2010 | |||||
Net cash provided by (used in) operating activities | $60,867 | $65,969 | $(136,312) | $(80,363) | ||||
Add: | ||||||||
Interest expense, net of interest income | 9,589 | 12,918 | 17,552 | 24,248 | ||||
Change in working capital and non-cash expenses | 2,343 | (16,680) | 219,327 | 147,610 | ||||
Provision for income taxes | 15,029 | 9,574 | 15,562 | 9,698 | ||||
EBITDA | $87,828 | $71,781 | $116,129 | $101,193 | ||||
Add: | ||||||||
Restructuring | 6,112 | 3,996 | 6,112 | 5,116 | ||||
Non-cash co-investment charges | - | 2,188 | - | 8,656 | ||||
Adjusted EBITDA | $93,940 | $77,965 | $122,241 | $114,965 | ||||
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 Quarterly Report on Form 10-Q for the quarter ended June 30, 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.
SOURCE Jones Lang LaSalle Incorporated
