JONES LANG LASALLE INCORPORATED 
By CHICAGO, Jan. 28, 2014 /PRNewswire/ -- Jones Lang LaSalle Incorporated (NYSE: JLL) today reported adjusted earnings per share ("EPS") of $6.32 for 2013, up from $5.48 in the prior year. Full-year fee revenue of $4.0 billion was up 12 percent. All percentage variances are calculated on a local currency basis.
-- Strong fee revenue growth, led by Capital Markets & Hotels and Property
& Facility Management; improved momentum in Leasing
-- Ongoing business investments generate market share gains and profitable
growth
-- Productivity gains and cost discipline drive margin improvement
-- Robust capital raise by LaSalle Investment Management: $7.0 billion
committed in 2013
-- Net debt reduced by $101 million during the year
Summary Financial Results Three Months Ended Twelve Months Ended
($ in millions, except per share data)
December 31, December 31,
------------ ------------
2013 2012 2013 2012
---- ---- ---- ----
Revenue $1,509 $1,249 $4,462 $3,933
Fee Revenue(1) $1,349 $1,165 $4,027 $3,640
Adjusted Net Income(2) $150 $117 $285 $245
U.S. GAAP Net Income $147 $107 $269 $208
Adjusted Earnings per Share(2) $3.33 $2.60 $6.32 $5.48
Earnings per Share $3.26 $2.38 $5.98 $4.63
Adjusted EBITDA(3) $230 $185 $498 $437
Adjusted EBITDA, Real Estate Services $211 $174 $428 $363
Adjusted EBITDA, LaSalle Investment Management $19 $11 $70 $74
---------------------------------------------- --- --- --- ---
(See Financial Statement Notes (1), (2) and (3) following the Financial Statements in this news release)
"Strong fourth-quarter revenue and profits capped a very successful 2013 for our firm," said Colin Dyer, President and Chief Executive Officer of Jones Lang LaSalle. "In 2014, we will continue to focus on serving our clients, improving margins, winning market share and investing in future profitable growth," Dyer added.
Consolidated Revenue Three Months Ended % Change in LC Twelve Months
December 31, Ended December
31, % Change in LC
($ in millions, "LC" = local currency)
2013 2012 2013 2012
---- ---- ---- ----
Real Estate Services ("RES")
---------------------------
Leasing $468.8 $439.2 8% $1,329.7 $1,277.8 5%
Capital Markets & Hotels 266.7 194.4 38% 708.4 512.9 40%
Property & Facility Management Fee Revenue(1) 290.7 242.4 23% 947.7 850.1 14%
Property & Facility Management 386.2 283.9 40% 1,199.5 1,012.3 22%
Project & Development Services Fee Revenue(1) 114.2 101.4 14% 372.4 355.8 6%
Project & Development Services 178.6 143.2 25% 555.4 486.2 15%
Advisory, Consulting and Other 142.8 124.8 15% 413.9 382.2 9%
----- ----- ----- -----
Total RES Fee Revenue(1) $1,283.2 $1,102.2 15% $3,772.1 $3,378.8 12%
-------- -------- -------- --------
Total RES Revenue $1,443.1 $1,185.5 23% $4,206.9 $3,671.4 16%
-------- -------- -------- --------
LaSalle Investment Management
-----------------------------
Advisory Fees $56.0 $56.2 1% $223.0 $228.1 (1%)
Transaction Fees & Other 7.2 4.6 61% 18.1 10.5 76%
Incentive Fees 3.1 2.4 29% 13.6 22.8 (40%)
--- --- ---- ----
Total LaSalle Investment Management $66.3 $63.2 6% $254.7 $261.4 (1%)
Revenue
Total Firm Fee Revenue(1) $1,349.5 $1,165.4 17% $4,026.8 $3,640.2 12%
-------- -------- -------- --------
Total Firm Revenue $1,509.4 $1,248.7 22% $4,461.6 $3,932.8 15%
-------- -------- -------- --------
Consolidated Performance Highlights:
-- Consolidated fee revenue was $4.0 billion for 2013, 12 percent higher
than 2012. Growth was driven by a 40 percent fee revenue increase in
Capital Markets & Hotels and a 14 percent fee revenue increase in
Property & Facility Management. Fourth-quarter fee revenue was $1.3
billion, an increase of 17 percent from last year.
-- Fee revenue growth was broad-based in 2013, with double-digit growth in
all three geographic segments.
-- In BRIC countries, China, Russia and India are stabilizing or improving
while Brazil continues to be challenged, particularly in its leasing
markets.
-- Consolidated fee-based operating expenses, excluding restructuring and
acquisition charges, were $3.6 billion for the year, compared with $3.3
billion last year, an increase of 11 percent. Fourth-quarter
consolidated fee-based operating expenses, excluding restructuring and
acquisition charges, were $1.2 billion, up 16 percent from last year.
-- Adjusted operating income margin calculated on a fee revenue basis was
9.7 percent for the year compared with 9.3 percent last year. This
increase represents 12.8 percent incremental margin to fee revenue for
the year and 19.3 percent incremental margin to fee revenue for the
fourth quarter.
Balance Sheet and Net Interest Expense:
-- The firm reduced total net debt to $437 million from $538 million last
year. This is the second consecutive year that the firm has reduced
debt by more than $100 million while continuing to invest in the
business.
-- In October 2013, the firm renewed its long-term bank credit facility and
increased the size to $1.2 billion from $1.1 billion. The renewed
facility has initial pricing at LIBOR + 1.25 percent, down from LIBOR +
1.625 percent, and an extended maturity of October 2018.
-- Net interest expense for 2013 was $34.7 million, down from $35.2 million
in 2012.
Business Segment Performance Highlights
Americas Real Estate Services
Americas Revenue Three Months % Change in LC Twelve Months
Ended December Ended December
31, 31, % Change in LC
($ in millions, "LC" = local currency)
2013 2012 2013 2012
---- ---- ---- ----
Leasing $296.7 $278.9 7% $879.3 $829.6 6%
Capital Markets & Hotels 78.6 59.4 32% 217.3 168.5 29%
Property & Facility Management Fee Revenue(1) 133.5 107.4 25% 407.5 358.8 14%
Property & Facility Management 169.8 127.6 35% 518.4 435.0 20%
Project & Development Services Fee Revenue(1) 59.3 51.7 16% 187.7 182.1 4%
Project & Development Services 59.6 51.9 16% 188.9 182.9 4%
Advisory, Consulting and Other 36.3 31.6 15% 114.2 107.0 7%
---- ---- ----- -----
Operating Revenue $604.4 $529.0 15% $1,806.0 $1,646.0 10%
Equity Earnings 0.3 0.1 n/m 0.5 0.0 n/m
--- --- --- ---
Total Segment Fee Revenue(1) $604.7 $529.1 15% $1,806.5 $1,646.0 10%
------ ------ -------- --------
Total Segment Revenue $641.3 $549.5 17% $1,918.6 $1,723.0 12%
------ ------ -------- --------
n/m - not meaningful
Americas Performance Highlights:
-- Full-year fee revenue was $1.8 billion, an increase of 10 percent from
2012. The largest growth was in Capital Markets & Hotels, which
increased 29 percent on a fee revenue basis and significantly outpaced
broader market volumes. Property & Facility Management fee revenue
increased 14 percent on a fee revenue basis due to new wins and
acquisitions. Fourth-quarter fee revenue was $605 million, an increase
of 15 percent from last year.
-- Fee-based operating expenses, excluding restructuring and acquisition
charges, were $1.6 billion for the year, up 10 percent from last year.
Fourth-quarter fee-based operating expenses, excluding restructuring and
acquisition charges, were $516 million, up 14 percent from last year.
-- Operating income was $184 million for the year, compared with $167
million in 2012. Operating income margin calculated on a fee revenue
basis was 10.2 percent for the full year 2013, consistent with last
year, and 14.7 percent in the fourth quarter, up 60 basis points over
the fourth quarter of 2012.
EMEA Real Estate Services
EMEA Revenue Three Months % Change in LC Twelve Months
Ended December Ended December
31, 31, % Change in LC
($ in millions, "LC" = local currency)
2013 2012 2013 2012
---- ---- ---- ----
Leasing $103.6 $83.7 21% $271.5 $250.0 7%
Capital Markets & Hotels 129.1 94.9 33% 333.3 235.1 41%
Property & Facility Management Fee Revenue(1) 61.1 46.1 31% 192.6 171.4 12%
Property & Facility Management 87.9 48.0 82% 240.4 178.9 34%
Project & Development Services Fee Revenue(1) 36.3 30.5 16% 117.4 106.5 9%
Project & Development Services 93.7 64.5 40% 274.2 219.8 22%
Advisory, Consulting and Other 77.5 66.7 14% 203.7 189.1 8%
---- ---- ----- -----
Operating Revenue $407.6 $321.9 24% $1,118.5 $952.1 17%
Equity Earnings 0.0 (0.1) n/m (0.5) (0.3) 67%
--- ---- ---- ----
Total Segment Fee Revenue(1) $407.6 $321.8 24% $1,118.0 $951.8 17%
------ ------ -------- ------
Total Segment Revenue $491.8 $357.7 35% $1,322.6 $1,072.6 22%
------ ------ -------- --------
n/m - not meaningful
EMEA Performance Highlights:
-- Full-year fee revenue was $1.1 billion, an increase of 17 percent from
2012. The increase was driven by growth in Capital Markets & Hotels,
which increased 41 percent on a fee revenue basis. Fourth-quarter fee
revenue was $408 million, an increase of 24 percent from last year, with
double-digit revenue growth in all service lines. Revenue growth was
broad-based for the quarter and the year, led by the UK, Germany,
France, Russia and the Netherlands.
-- Fee-based operating expenses, excluding restructuring and acquisition
charges, were $1.0 billion for the year, up 14 percent from last year.
Fourth-quarter fee-based operating expenses, excluding restructuring and
acquisition charges, were $348 million, up 24 percent from last year.
-- Adjusted operating income, which excludes King Sturge amortization, was
$92 million for the year, compared with $59 million in 2012. Adjusted
operating income margin calculated on a fee revenue basis was 8.2
percent compared with 6.2 percent last year.
Asia Pacific Real Estate Services
Asia Pacific Revenue Three Months Ended % Change in LC Twelve Months
December 31, Ended December
31, % Change in LC
($ in millions, "LC" = local currency)
2013 2012 2013 2012
---- ---- ---- ----
Leasing $68.5 $76.6 (4%) $178.9 $198.2 (6%)
Capital Markets & Hotels 59.0 40.1 59% 157.8 109.3 53%
Property & Facility Management Fee Revenue(1) 96.1 88.9 17% 347.6 319.9 15%
Property & Facility Management 128.5 108.3 28% 440.7 398.4 18%
Project & Development Services Fee Revenue(1) 18.6 19.2 6% 67.3 67.2 6%
Project & Development Services 25.3 26.8 5% 92.3 83.5 19%
Advisory, Consulting and Other 29.0 26.5 15% 96.0 86.1 15%
---- ---- ---- ----
Operating Revenue $271.2 $251.3 16% $847.6 $780.7 14%
Equity Earnings 0.1 0.0 n/m 0.1 0.1 n/m
--- --- --- ---
Total Segment Fee Revenue(1) $271.3 $251.3 16% $847.7 $780.8 14%
------ ------ ------ ------
Total Segment Revenue $310.4 $278.3 20% $965.8 $875.6 17%
------ ------ ------ ------
n/m - not meaningful
Asia Pacific Performance Highlights:
-- Full-year fee revenue was $848 million, an increase of 14 percent from
2012. Property & Facility Management fee revenue was up 15 percent from
continued market share gains, and Capital Markets & Hotels also
demonstrated strong performance above market volumes. Leasing revenue
decreased from last year as corporate clients in many Asia Pacific
markets remained hesitant to make new commitments. Fourth-quarter fee
revenue was $271 million, an increase of 16 percent from last year.
Revenue growth for the quarter and the year was led by Greater China
geographically, but also was broad-based across the region's Property &
Facility Management platform.
-- Fee-based operating expenses, excluding restructuring and acquisition
charges, were $770 million for the year, up 13 percent from last year.
Fourth-quarter fee-based operating expenses, excluding restructuring and
acquisition charges, were $229 million, up 12 percent from last year.
-- Operating income was $77 million for the year, compared with $65 million
in 2012. Operating income margin calculated on a fee revenue basis was
9.1 percent, compared with 8.4 percent last year.
LaSalle Investment Management
LaSalle Investment Three Months % Change in Twelve Months % Change in
Management Revenue Ended December 31, LC Ended December 31, LC
($ in millions, "LC" = local currency)
2013 2012 2013 2012
---- ---- ---- ----
Advisory Fees $56.0 $56.2 1% $223.0 $228.1 (1%)
Transaction Fees & Other 7.2 4.6 61% 18.1 10.5 76%
Incentive Fees 3.1 2.4 29% 13.6 22.8 (40%)
Operating Revenue $66.3 $63.2 6% $254.7 $261.4 (1%)
Equity Earnings 9.8 1.4 n/m 31.2 24.0 30%
Total Segment Revenue $76.1 $64.6 20% $285.9 $285.4 2%
----- ----- ------ ------
n/m - not meaningful
LaSalle Investment Management Performance Highlights:
-- Advisory fees were $223 million for the year, a slight decrease from
last year, resulting from new mandates and fund closings that were
offset by portfolio sales at attractive valuations for LaSalle's
investors during 2013.
-- Operating expenses were $218 million for the year, compared with $214
million last year.
-- Operating income was $68 million for the year, a margin of 23.7 percent,
compared with $72 million in 2012, a margin of 25.2 percent. Equity
earnings increased 30 percent from $24 million last year to $31 million
in 2013.
-- In 2013, LaSalle's capital raising momentum continued with $7 billion in
equity commitments obtained during the year.
-- Assets under management were $47.6 billion as of December 31, 2013,
compared with $47.0 billion at December 31, 2012. The net increase in
assets under management was primarily due to $8.4 billion of
acquisitions and takeovers, $7.4 billion of dispositions and
withdrawals, and $900 million of reductions due to foreign currency
movements. Assets under management increased by $900 million during the
fourth quarter primarily due to $1.8 billion of acquisitions and
takeovers, $1.7 billion of dispositions and withdrawals, and $1.0
billion of increases due to foreign currency movements.
About Jones Lang LaSalle
Jones Lang LaSalle (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual fee revenue of $4.0 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 3.0 billion square feet. Its investment management business, LaSalle Investment Management, has $47.6 billion of real estate assets under management. For further information, visit www.jll.com.
200 East Randolph Drive Chicago Illinois 60601 ? 30 Warwick Street London W1B 5NH ? 9 Raffles Place #39-00 Republic Plaza Singapore 048619
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 and dividend payments 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, 2012, and in the Quarterly Report on Form 10-Q for the quarters ended March 31, 2013, and June 30, 2013, and September 30, 2013 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 Tuesday, January 28 at 6:00 p.m. EST.
To participate in the conference call, please dial into one of the following phone numbers five to ten minutes before the start time:
-- U.S. callers: +1 877 800 0896
-- International callers: +1 706 679 7364
-- Pass code: 31459103
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=97649 and follow
instructions
3. Download free Windows Media Player software: (link located under
registration form)
4. If you experience problems listening, send an email to
prnwebcast@multivu.com
Supplemental Information
Supplemental information regarding the fourth-quarter 2013 earnings call has been posted to the Investor Relations section of the company's website: www.jll.com.
Conference Call Replay
Available: 11:00 p.m. EST Tuesday, January 28 through 11:59 p.m. EST Friday, February 28 at the following numbers:
-- U.S. callers: + 1 855 859 2056 or + 1 800 585
8367
-- International callers: + 1 404 537 3406
-- Pass code: 31459103
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.jll.com.
If you have any questions, email Jones Lang LaSalle's Investor Relations department at JLLInvestorRelations@am.jll.com.
JONES LANG LASALLE INCORPORATED
Consolidated Statements of Operations
For the Three and Twelve Months Ended December 31, 2013 and 2012
(in thousands, except share data)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------- -------------------
2013 2012 2013 2012
---- ---- ---- ----
Revenue $1,509,418 $1,248,704 $4,461,591 $3,932,830
Operating expenses:
Compensation and benefits 919,709 794,160 2,817,059 2,546,965
Operating, administrative and other 369,427 270,501 1,177,545 972,231
Depreciation and amortization 20,857 20,100 79,853 78,810
Restructuring and acquisition charges 3,626 13,045 18,315 45,421
----- ------ ------ ------
Total operating expenses 1,313,619 1,097,806 4,092,772 3,643,427
--------- --------- --------- ---------
Operating income 195,799 150,898 368,819 289,403
Interest expense, net of interest income (8,115) (10,337) (34,718) (35,173)
Equity earnings from real estate ventures 10,211 1,358 31,343 23,857
------ ----- ------ ------
Income before income taxes and noncontrolling interest 197,895 141,919 365,444 278,087
Provision for income taxes 50,372 34,657 92,092 69,244
------ ------ ------ ------
Net income 147,523 107,262 273,352 208,843
Net income attributable to noncontrolling interest 201 190 3,487 793
--- --- ----- ---
Net income attributable to the Company $147,322 $107,072 $269,865 $208,050
-------- -------- -------- --------
Dividends on unvested common stock, net of tax benefit 168 241 409 494
--- --- --- ---
Net income attributable to common shareholders $147,154 $106,831 $269,456 $207,556
-------- -------- -------- --------
Basic earnings per common share $3.31 $2.43 $6.09 $4.73
----- ----- ----- -----
Basic weighted average shares outstanding 44,440,684 44,051,014 44,258,878 43,848,737
---------- ---------- ---------- ----------
Diluted earnings per common share $3.26 $2.38 $5.98 $4.63
----- ----- ----- -----
Diluted weighted average shares outstanding 45,146,449 44,953,524 45,072,120 44,799,437
---------- ---------- ---------- ----------
EBITDA $226,867 $172,356 $480,015 $392,070
-------- -------- -------- --------
Please reference attached financial statement notes.
JONES LANG LASALLE INCORPORATED
Segment Operating Results
For the Three and Twelve Months Ended December 31, 2013 and 2012
(in thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------- --------------------
2013 2012 2013 2012
---- ---- ---- ----
REAL ESTATE SERVICES
AMERICAS
Revenue:
Operating revenue $641,079 $549,287 $1,918,092 $1,723,025
Equity earnings (losses) 276 74 549 (3)
--- --- --- ---
Total segment revenue 641,355 549,361 1,918,641 1,723,022
Gross contract costs(1) (36,672) (20,315) (112,097) (76,929)
------- ------- -------- -------
Total segment fee revenue 604,683 529,046 1,806,544 1,646,093
------- ------- --------- ---------
Operating expenses:
Compensation, operating and administrative expenses 540,330 463,451 1,689,365 1,513,594
Depreciation and amortization 12,006 11,205 45,285 42,333
------ ------ ------ ------
Total segment operating expenses 552,336 474,656 1,734,650 1,555,927
Gross contract costs(1) (36,672) (20,315) (112,097) (76,929)
------- ------- -------- -------
Total fee-based segment operating expenses 515,664 454,341 1,622,553 1,478,998
Operating income $89,019 $74,705 $183,991 $167,095
======= ======= ======== ========
Adjusted EBITDA $101,025 $85,910 $229,276 $209,428
-------- ------- -------- --------
EMEA
Revenue:
Operating revenue $491,779 $357,901 $1,323,201 $1,072,909
Equity earnings (losses) 1 (82) (535) (310)
--- --- ---- ----
Total segment revenue 491,780 357,819 1,322,666 1,072,599
Gross contract costs(1) (84,211) (35,958) (204,596) (120,817)
------- ------- -------- --------
Total segment fee revenue 407,569 321,861 1,118,070 951,782
------- ------- --------- -------
Operating expenses:
Compensation, operating and administrative expenses 426,426 305,795 1,212,797 996,639
Depreciation and amortization 5,435 5,001 20,547 21,644
----- ----- ------ ------
Total segment operating expenses 431,861 310,796 1,233,344 1,018,283
Gross contract costs(1) (84,211) (35,958) (204,596) (120,817)
------- ------- -------- --------
Total fee-based segment operating expenses 347,650 274,838 1,028,748 897,466
Operating income $59,919 $47,023 $89,322 $54,316
======= ======= ======= =======
Adjusted EBITDA $65,354 $52,024 $109,869 $75,960
------- ------- -------- -------
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------- --------------------
2013 2012 2013 2012
---- ---- ---- ----
ASIA PACIFIC
Revenue:
Operating revenue $310,256 $278,329 $965,626 $875,476
Equity earnings (losses) 127 (11) 129 150
--- --- --- ---
Total segment revenue 310,383 278,318 965,755 875,626
Gross contract costs(1) (39,051) (27,044) (118,089) (94,816)
------- ------- -------- -------
Total segment fee revenue 271,332 251,274 847,666 780,810
------- ------- ------- -------
Operating expenses:
Compensation, operating and administrative expenses 264,804 241,952 876,239 797,396
Depreciation and amortization 2,996 3,329 12,216 12,886
----- ----- ------ ------
Total segment operating expenses 267,800 245,281 888,455 810,282
Gross contract costs(1) (39,051) (27,044) (118,089) (94,816)
------- ------- -------- -------
Total fee-based segment operating expenses 228,749 218,237 770,366 715,466
Operating income $42,583 $33,037 $77,300 $65,344
======= ======= ======= =======
Adjusted EBITDA $45,579 $36,366 $89,516 $78,230
------- ------- ------- -------
LASALLE INVESTMENT MANAGEMENT
Revenue:
Operating revenue $66,304 $63,187 $254,672 $261,420
Equity earnings 9,808 1,377 31,200 24,020
----- ----- ------ ------
Total segment revenue 76,112 64,564 285,872 285,440
Operating expenses:
Compensation, operating and administrative expenses 57,577 53,463 216,203 211,567
Depreciation and amortization 419 565 1,805 1,947
--- --- ----- -----
Total segment operating expenses 57,996 54,028 218,008 213,514
Operating income $18,116 $10,536 $67,864 $71,926
======= ======= ======= =======
Adjusted EBITDA $18,535 $11,101 $69,669 $73,873
------- ------- ------- -------
SEGMENT RECONCILING ITEMS:
Total segment revenue $1,519,630 $1,250,062 $4,492,934 $3,956,687
Reclassification of equity earnings 10,212 1,358 31,343 23,857
Total revenue $1,509,418 $1,248,704 $4,461,591 $3,932,830
========== ========== ========== ==========
Total operating expenses before restructuring and
acquisition charges 1,309,993 1,084,761 4,074,457 3,598,006
Operating income before restructuring and acquisition
charges $199,425 $163,943 $387,134 $334,824
======== ======== ======== ========
Restructuring and acquisition charges 3,626 13,045 18,315 45,421
Operating income after restructuring and acquisition
charges $195,799 $150,898 $368,819 $289,403
======== ======== ======== ========
Total adjusted EBITDA $230,493 $185,401 $498,330 $437,491
Restructuring and acquisition charges 3,626 13,045 18,315 45,421
Total EBITDA $226,867 $172,356 $480,015 $392,070
======== ======== ======== ========
Please reference attached financial statement notes.
JONES LANG LASALLE INCORPORATED
Consolidated Balance Sheets
December 31, 2013 and December 31, 2012
(in thousands)
December 31, December 31,
2013 2012
---- ----
ASSETS
------
Current assets:
Cash and cash equivalents $152,726 $152,159
Trade receivables, net of allowances 1,237,514 996,681
Notes and other receivables 94,519 101,952
Warehouse receivables - 144,257
Prepaid expenses 56,491 53,165
Deferred tax assets, net 130,822 50,831
Other 17,630 16,484
Total current assets 1,689,702 1,515,529
Property and equipment, net of accumulated depreciation 295,547 269,338
Goodwill, with indefinite useful lives 1,900,080 1,853,761
Identified intangibles, net of accumulated amortization 45,579 45,932
Investments in real estate ventures 287,200 268,107
Long-term receivables 65,353 58,881
Deferred tax assets, net 104,654 197,892
Other 209,238 142,059
Total assets $4,597,353 $4,351,499
========== ==========
LIABILITIES AND EQUITY
----------------------
Current liabilities:
Accounts payable and accrued liabilities $528,505 $497,817
Accrued compensation 810,425 685,718
Short-term borrowings 24,522 32,233
Deferred tax liabilities, net 11,274 10,113
Deferred income 104,410 76,152
Deferred business acquisition obligations 36,040 105,772
Warehouse facility - 144,257
Other 143,248 109,909
Total current liabilities 1,658,424 1,661,971
Noncurrent liabilities:
Credit facility 155,000 169,000
Long-term senior notes 275,000 275,000
Deferred tax liabilities, net 18,029 3,106
Deferred compensation 103,199 75,320
Deferred business acquisition obligations 99,196 107,661
Minority shareholder redemption liability 20,667 19,489
Other 77,029 80,696
Total liabilities 2,406,544 2,392,243
December 31, December 31,
2013 2012
---- ----
Company shareholders' equity:
Common stock, $.01 par value per share, 100,000,000 shares
authorized;
44,447,958 and 44,054,042 shares issued and outstanding as
of
December 31, 2013 and December 31, 2012, respectively 444 441
Additional paid-in capital 945,512 932,255
Retained earnings 1,266,967 1,017,128
Shares held in trust (8,052) (7,587)
Accumulated other comprehensive (loss) income (25,202) 8,946
Total Company shareholders' equity 2,179,669 1,951,183
Noncontrolling interest 11,140 8,073
Total equity 2,190,809 1,959,256
Total liabilities and equity $4,597,353 $4,351,499
========== ==========
Please reference attached financial statement notes.
JONES LANG LASALLE INCORPORATED
Summarized Consolidated Statements of Cash Flows
For the Twelve Months Ended December 31, 2013 and 2012
(in thousands)
Twelve Months
Ended December
31,
2013 2012
Cash provided by
operating activities $293,167 $327,698
Cash used in investing
activities (164,212) (151,252)
Cash used in financing
activities (128,388) (208,741)
Net increase (decrease)
in cash and cash
equivalents $567 $(32,295)
Cash and cash
equivalents, beginning
of period 152,159 184,454
Cash and cash
equivalents, end of
period $152,726 $152,159
======== ========
Please reference attached financial statement
notes.
---------------------------------------------
JONES LANG LASALLE INCORPORATED
Financial Statement Notes
1. Consistent with U.S. GAAP ("GAAP"), gross contract vendor and subcontractor costs ("gross contract costs") which are managed on certain client assignments in the Property & Facility Management and Project & Development Services business lines are presented on a gross basis in both revenue and operating expenses. Gross contract costs are excluded from revenue and operating expenses in determining "fee revenue" and "fee-based operating expenses", respectively. Excluding these costs from revenue and operating expenses more accurately reflects how the firm manages its expense base and its operating margins. Adjusted operating income excludes the impact of restructuring and acquisition charges and intangible amortization related to the King Sturge acquisition. "Adjusted operating income margin" is calculated by dividing adjusted operating income by fee revenue. Below are reconciliations of revenue and operating expenses to fee revenue and fee-based operating expenses, as well as adjusted operating income margin calculations, for the three and twelve months ended December 31, 2013, and 2012.
Three Months Ended Twelve Months
Ended
December 31, December 31,
------------
($ in millions) 2013 2012 2013 2012
---- ---- ---- ----
Revenue $1,509.4 $1,248.7 $4,461.6 $3,932.8
Gross contract costs (159.9) (83.3) (434.8) (292.6)
------ ----- ------ ------
Fee revenue $1,349.5 $1,165.4 $4,026.8 $3,640.2
-------- -------- -------- --------
Operating expenses $1,313.6 $1,097.8 $4,092.8 $3,643.4
Gross contract costs (159.9) (83.3) (434.8) (292.6)
------ ----- ------ ------
Fee-based operating expenses $1,153.7 $1,014.5 $3,658.0 $3,350.8
Operating income $195.8 $150.9 $368.8 $289.4
====== ====== ====== ======
Add:
Restructuring and acquisition charges 3.6 13.0 18.3 45.4
King Sturge intangible amortization 0.6 0.6 2.2 4.9
--- --- --- ---
Adjusted operating income $200.0 $164.5 $389.3 $339.7
====== ====== ====== ======
Adjusted operating income margin 14.8% 14.1% 9.7% 9.3%
==== ==== === ===
2. Charges excluded from GAAP net income attributable to common shareholders to arrive at adjusted net income for the three and twelve months ended December 31, 2013, and 2012, are (a) restructuring and acquisition charges and (b) intangible amortization related to the 2011 King Sturge acquisition. Below are reconciliations of GAAP net income attributable to common shareholders to adjusted net income and calculations of earnings per share ("EPS") for each net income total:
Three Months Ended Twelve Months
Ended
December 31, December 31,
------------
($ in millions, except per
share data) 2013 2012 2013 2012
---- ---- ---- ----
GAAP net income
attributable to common
shareholders $147.2 $106.8 $269.5 $207.6
Shares (in 000s) 45,146 44,954 45,072 44,799
------ ------ ------ ------
GAAP diluted earnings per
share $3.26 $2.38 $5.98 $4.63
===== ===== ===== =====
GAAP net income
attributable to common
shareholders $147.2 $106.8 $269.5 $207.6
Restructuring and
acquisition charges, net 2.6 9.8 13.7 34.1
King Sturge intangible
amortization, net 0.4 0.5 1.6 3.7
Adjusted net income $150.2 $117.1 $284.8 $245.4
Shares (in 000s) 45,146 44,954 45,072 44,799
Adjusted diluted earnings
per share $3.33 $2.60 $6.32 $5.48
===== ===== ===== =====
3. Adjusted EBITDA represents earnings before interest expense net of interest income, income taxes, depreciation and amortization, adjusted for restructuring and acquisition charges. Although adjusted EBITDA and EBITDA are non-GAAP financial measures, they are used extensively by management and are useful to investors and lenders as metrics for evaluating operating performance and liquidity. EBITDA is used in the calculations of certain covenants related to the firm's revolving credit facility. However, adjusted EBITDA and EBITDA should not be considered as an alternative to net income determined in accordance with GAAP. Because adjusted EBITDA and EBITDA are not calculated under GAAP, the firm's adjusted EBITDA and EBITDA may not be comparable to similarly titled measures used by other companies.
Below is a reconciliation of net income to EBITDA and adjusted EBITDA:
Three Twelve
Months Months
Ended Ended
December December
31, 31,
--------- ---------
($ in millions) 2013 2012 2013 2012
---- ---- ---- ----
GAAP net income $147.5 $107.3 $273.4 $208.8
Add:
Interest expense, net of
interest income 8.1 10.3 34.7 35.2
Provision for income taxes 50.4 34.7 92.1 69.3
Depreciation and
amortization 20.9 20.1 79.8 78.8
EBITDA $226.9 $172.4 $480.0 $392.1
====== ====== ====== ======
Add:
Restructuring and
acquisition charges 3.6 13.0 18.3 45.4
Adjusted EBITDA $230.5 $185.4 $498.3 $437.5
====== ====== ====== ======
4. Restructuring and acquisition charges are excluded from segment operating results, although they are included for consolidated reporting. For purposes of segment operating results, the allocation of restructuring charges to the segments has been determined not to be meaningful to investors, so the performance of segment results has been evaluated without allocation of these charges.
5. Intangible amortization from the second-quarter 2011 King Sturge acquisition is included in depreciation and amortization in the firm's consolidated results, as well as in EMEA's segment results, but has been excluded from adjusted operating income and adjusted net income.
6. 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.
7. 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, 2013, to be filed with the Securities and Exchange Commission shortly.
8. EMEA refers to Europe, Middle East and Africa. MENA refers to Middle East and North Africa. Greater China includes China, Hong Kong, Macau and Taiwan. Southeast Asia refers to Singapore, Indonesia, Philippines, Thailand and Vietnam. The BRIC countries include Brazil, Russia, India and China.
9. Certain prior year amounts have been reclassified to conform to the current presentation.
SOURCE Jones Lang LaSalle Incorporated
