Exhibit 99.1
Jones Lang LaSalle Exceeds 2003 Guidance With Net Income of $36.1 Million,
$1.12 Per Share
CHICAGO and LONDON, Feb. 4 /PRNewswire-FirstCall/ -- Jones Lang LaSalle
Incorporated (NYSE: JLL), the leading global real estate services and
investment management firm, today reported net income of $36.1 million, or
$1.12 per diluted share, for the fiscal year ended December 31, 2003. These
results compare favorably to management guidance to exceed $1.00 per share and
to the prior year's net income of $27.1 million, or $0.85 per share. EBITDA
for the year was $99.1 million compared to the prior year of $90.7 million, an
increase of 9 percent.
For the fourth quarter of 2003, net income was $37.3 million, or $1.14 per
share, as compared with a net income of $17.5 million or $0.55 per share in
2002. All segments reported year-over-year operating income improvement, with
the exception of Europe which was down $1.4 million. Included in the 2003
fourth quarter results were $1.7 million of nonrecurring and restructuring
charges primarily related to a provision for the abandonment of a lease in
Europe, offset by a reversal of reserves for merger related compensation from
the Jones Lang Wootton merger. The results for the fourth quarter of 2002
included $13.3 million of non-recurring charges principally relating to
business restructuring.
2003 Results Highlights
-- Net income of $36.1 million versus prior year of $27.1 million
-- Credit facilities paid down by $38.4 million
-- Increased cash holdings by $49.4 million
"We are pleased to end 2003 with a strong performance delivery around the
globe and to exceed our earnings guidance," said Stuart Scott, the firm's
Chairman and Chief Executive Officer. "We are gaining confidence that the
world economies are improving, starting first in the Americas. We have
maintained our market strength while improving our core operational
performance. We are looking forward to 2004."
Revenues were $330.3 million for the quarter and $949.8 million for the
year, an increase of 20 percent and 10 percent in U.S. dollars, respectively,
and 11 and 3 percent in local currencies. Operating expenses for the year,
excluding non-recurring and restructuring charges, were $883.3 million, an
11 percent increase on the prior year period in U.S. dollars, 4 percent in
local currency terms.
Reflecting continued strong business cash flows, focused receivables
management and reduced capital expenditures, the firm paid down its credit
facilities by $38.4 million from the prior year period and increased cash on
its balance sheet by $49.4 million. The firm is well positioned to refinance
its 9 percent Eurobonds, which are first callable in June, 2004. The U.S.
dollar reported book value of the firm's Eurobonds increased by $34.7 million
year-over-year as a result of the strengthening euro. Interest expense of
$17.9 million was slightly higher than the previous year, reflecting the
strengthening euro and costs associated with the renewal of our credit
facilities offset by the continued pay down of debt together with a generally
lower interest rate environment.
The current year tax expense of $8.3 million reflects a 28 percent
effective tax rate on recurring operations, reduced by a credit of
$3.0 million from the reversal of a reserve from an e-commerce investment
write-down. The prior year tax expense of $11.0 million reflected a 34 percent
effective tax rate on recurring operations and included a credit of
$1.8 million associated with 2001 restructuring expenses which previously had
not been considered tax deductible.
Business Segment Fourth Quarter and Full-Year Performance Highlights
Owner and Occupier Services
-- Our Americas region had a strong finish to the year, reporting a
16 percent increase in revenues in the fourth quarter from the prior
year period to $119.0 million, with strength across all business
lines. Full-year 2003 revenues of $313.5 million were up 8 percent
from 2002, driven by improved revenue performance in the Tenant
Representation business as a result of increased transaction flow from
strategic alliance clients and Project and Development Services where
several large, multi-site engagements were won. Operating income for
the quarter was $28.9 million, an increase of $4.6 million over the
same period last year. For the year, operating income was up
$5.8 million to $37.8 million, reflecting the continued focus on cost
control and continuing the improving trend in profitability from 2002.
-- Our European region had a mixed fourth quarter with revenues of
$115.9 million, a 17 percent increase over the prior year in U.S.
dollars, but only a 3 percent increase in local currencies. The small
revenue increase in local currencies reverses a trend of declining
local currency revenues and is attributable to a strong finish to the
year in the United Kingdom businesses, significant contribution from
the Hotels business and a 20 percent revenue growth in the growth
markets of Italy, Spain, Sweden and Central Europe. The continuing
underlying economic conditions again challenged the mature continental
markets of France, Germany and Benelux, although Germany showed fourth
quarter revenue growth year-over-year. For the full year, Europe's
revenues increased 11 percent in U.S. dollars from the previous year,
to $351.1 million, but in local currencies revenues declined
3 percent. Operating income for the quarter was down $1.4 million on
the prior year period and the year was down more than 26 percent to
$13.0 million as a continued focus on cost control by the management
teams was not sufficient to offset the difficult revenue environment.
-- The 2003 fourth quarter and full year revenues for Asia Pacific were
33 percent and 19 percent higher than the same periods in 2002 in U.S.
dollars, 18 percent and 9 percent in local currencies. Strong revenue
growth continued in North Asia as well as India where the current
global outsourcing trends have created significant opportunities for
the global Corporate Solutions businesses. The core markets of
Australia and Hong Kong stabilized, and in particular, the recovery
from SARS in Hong Kong was demonstrated, where revenues increased by
more than 25 percent compared to the fourth quarter of 2002. The
operating loss for the year was $2.7 million, $2.5 million worse than
2002 due to investment in the growth markets of North Asia and India
and the costs of maintaining market leadership in the core market
operations.
Investment Management
During the fourth quarter of 2003, LaSalle Investment Management revenues
were up $6.2 million from the prior year, primarily as a result of increased
equity earnings from real estate co-investments as the businesses capitalized
on continued strong real estate property values. Also impacting revenues were
incentive fees that were down principally due to timing differences of
measuring performance and the positive impact of the stronger currencies which
increased the reported U.S. dollar revenues by $2.2 million. Operating income
for the fourth quarter of $11.0 million was up $5.5 million from the same
period in 2002 as a result of the increased equity earnings together with
reduced professional fee expense. Revenues for the year of $113.3 million
were up 4 percent on the prior year in U.S. dollars, but down 1 percent in
local currencies, reflecting reduced incentive fees, as 2002 included a large
incentive fee that is earned on a four-year cycle. Advisory fees were up
12 percent as the business continues to emphasize growth in annuity revenues.
The full year impact of the decision in 2002 to invest in people to support
new fund growth resulted in a $1.6 million reduction in operating income to
$18.4 million.
2004 Outlook
Consistent with the prior year, the firm is not giving full year guidance;
however, the firm is comfortable with the range of earnings estimates of the
analysts following the firm's results, which reflect an improving outlook of
performance. These analyst estimates exclude the cost of the Eurobond
refinance which is anticipated to be approximately $0.25 per share. The firm
results have a seasonal character, with the first quarter of the year
typically a loss and the majority of profits occurring in the second half of
the year. Consistent with last year, the firm is expecting a loss in the
first quarter.
About Jones Lang LaSalle
Jones Lang LaSalle is the world's leading real estate services and
investment management firm, operating across more than 100 markets around the
globe. The company provides comprehensive integrated expertise, including
management services, implementation services and investment management
services on a local, regional and global level to owners, occupiers and
investors. Jones Lang LaSalle is also the industry leader in property and
corporate facility management services, with a portfolio of approximately 725
million square feet (67 million square meters) under management worldwide.
LaSalle Investment Management, the company's investment management business,
is one of the world's largest and most diverse real estate investment
management firms, with approximately $21 billion of assets under management.
Statements in this press release regarding, among other things, future
financial results and performance, achievements, plans and objectives may be
considered forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements involve known and
unknown risks, uncertainties and other factors which may cause actual results,
performance, achievements, plans and objectives of Jones Lang LaSalle to be
materially different from those expressed or implied by such forward-looking
statements. Factors that could cause actual results to differ materially
include those discussed under "Business," "Management's Discussion and
Analysis of Financial Condition and Results of Operations," "Quantitative and
Qualitative Disclosures about Market Risk," and elsewhere in Jones Lang
LaSalle's Annual Report on Form 10-K for the year ended December 31, 2002,
under "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 Quarterly Report on Form 10-Q for the
quarters ended March 31, June 30, and September 30, 2003, in Jones Lang
LaSalle's Proxy Statement dated April 4, 2003, 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 Thursday, February 5 at 9 a.m. EST.
To participate in the teleconference, please dial into one of the
following phone numbers five to ten minutes before the start time:
-- United States callers: +1 877 809 9540
-- International callers: +1 706 679 7364
-- Replay Information Available: (Noon EST) Thursday, February 5 through
(Midnight EST) Thursday, February 19 at the following numbers
-- International callers: +1 706 645 9291
-- U.S. callers: +1 800 642 1687
-- Pass code: 5036406
Live web cast (available through February 12)
Follow these steps to listen to the web cast:
1. You must have a minimum 14.4 Kbps Internet connection
2. Log onto:
http://www.firstcallevents.com/service/ajwz397383219gf12.html
3. Download free Windows Media Player software: (link located under
registration form)
4. If you experience problems listening, send an e-mail to
webcastsupport@tfprn.com
This information is also available on the Company's website at
www.joneslanglasalle.com .
JONES LANG LASALLE INCORPORATED
Consolidated Statements of Earnings
For the Three and Twelve Months Ended December 31, 2003 and 2002
(in thousands, except share data)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2003 (A) 2002 (A) 2003 (A) 2002 (A)
Revenue:
Fee based services $316,559 $271,832 $924,694 $846,933
Equity in earnings
from unconsolidated
ventures 8,233 176 7,951 2,581
Other income 5,509 4,276 17,200 13,057
Total revenue 330,301 276,284 949,845 862,571
Operating expenses:
Compensation and
benefits 205,300 168,887 612,354 543,003
Operating,
administrative and
other 64,155 56,415 234,000 212,877
Depreciation and
amortization 8,886 8,886 36,944 37,125
Non-recurring and
restructuring
charges:
Compensation and
benefits (2,570) 11,919 (4,633) 11,438
Operating,
administrative and
other 4,229 1,429 8,994 3,433
Total operating
expenses 280,000 247,536 887,659 807,876
Operating income 50,301 28,748 62,186 54,695
Interest expense, net
of interest income 4,135 4,057 17,861 17,024
Income before
provision for
income taxes and
minority interest 46,166 24,691 44,325 37,671
Net provision for
income taxes 8,850 8,164 8,260 11,037
Minority interests in
earnings (losses) of
subsidiaries - (602) - 711
Net income before
extraordinary
item and
cumulative effect
of change in
accounting
principle $37,316 $17,129 $36,065 $25,923
Extraordinary gain on
the acquisition of
minority interest,
net of tax - 341 - 341
Cumulative effect of
change in accounting
principle - - - 846
Net income $37,316 $17,470 $36,065 $27,110
EBITDA (B) $59,187 $38,444 $99,130 $90,722
Basic earnings per
common share before
extraordinary item
and cumulative effect
of change in accounting
principle $1.20 $0.56 $1.17 $0.85
Extraordinary gain on
the acquisition of
minority interest,
net of tax - 0.01 - 0.01
Cumulative effect of
change in accounting
principle - - - 0.03
Basic earnings per
common share $1.20 $0.57 $1.17 $0.89
Basic weighted average
shares outstanding 31,178,266 30,670,749 30,951,563 30,486,842
Diluted earnings per
common share before
extraordinary item
and cumulative effect
of change in accounting
principle $1.14 $0.54 $1.12 $0.81
Extraordinary gain on
the acquisition of
minority interest,
net of tax - 0.01 - 0.01
Cumulative effect of
change in accounting
principle - - - 0.03
Diluted earnings per
common share $1.14 $0.55 $1.12 $0.85
Diluted weighted
average shares
outstanding 32,600,973 31,739,621 32,226,306 31,854,397
Please reference attached financial statement notes.
JONES LANG LASALLE INCORPORATED
Segment Operating Results
For the Three and Twelve Months ended December 31, 2003 and 2002
(in thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2003 (A) 2002 (A) 2003 (A) 2002 (A)
OWNER & OCCUPIER SERVICES -
AMERICAS
Revenue:
Implementation
services $66,372 $56,356 $137,254 $135,013
Management services 50,739 44,717 170,448 151,306
Equity losses - - - (10)
Other services 1,561 1,164 5,056 4,119
Intersegment
revenue 328 101 760 476
119,000 102,338 313,518 290,904
Operating expenses:
Compensation,
operating and
administrative 86,002 73,530 257,824 240,141
Depreciation and
amortization 4,134 4,538 17,851 18,761
Operating income (C) $28,864 $24,270 $37,843 $32,002
EUROPE
Revenue:
Implementation
services $89,367 $72,736 $252,109 $228,155
Management services 23,553 23,519 89,147 82,492
Other services 3,014 2,485 9,876 7,123
115,934 98,740 351,132 317,770
Operating expenses:
Compensation,
operating and
administrative 103,601 85,544 326,946 289,594
Depreciation and
amortization 2,837 2,287 11,168 10,421
Operating income (C) $9,496 $10,909 $13,018 $17,755
ASIA PACIFIC
Revenue:
Implementation
services $35,615 $24,389 $95,998 $77,329
Management services 20,451 17,505 74,894 66,411
Other services 652 580 1,762 1,624
56,718 42,474 172,654 145,364
Operating expenses:
Compensation,
operating and
administrative 52,482 39,302 168,661 138,922
Depreciation and
amortization 1,636 1,728 6,734 6,673
Operating income
(loss) (C) $2,600 $1,444 $(2,741) $(231)
INVESTMENT MANAGEMENT-
Revenue:
Implementation and
other services $4,092 $2,897 $7,416 $5,249
Advisory fees 23,846 23,796 93,194 83,448
Incentive fees 2,806 5,964 4,740 17,721
Equity earnings 8,233 176 7,951 2,591
38,977 32,833 113,301 109,009
Operating expenses:
Compensation,
operating and
administrative 27,698 27,027 93,683 87,699
Depreciation and
amortization 279 333 1,191 1,270
Operating income (C) $11,000 $5,473 $18,427 $20,040
Total segment revenue $330,629 $276,385 $950,605 $863,047
Intersegment revenue
eliminations (328) (101) (760) (476)
Total revenue $330,301 $276,284 $949,845 $862,571
Total segment operating
expenses $278,669 $234,289 $884,058 $793,481
Intersegment operating
expense eliminations (328) (101) (760) (476)
Total operating expenses
before non-recurring and
restructuring charges $278,341 $234,188 $883,298 $793,005
Operating income before
non-recurring and
restructuring charges $51,960 $42,096 $66,547 $69,566
Please reference attached financial statement notes.
JONES LANG LASALLE INCORPORATED
Consolidated Balance Sheets
December 31, 2003 and December 31, 2002
(in thousands)
December 31, December 31,
2003 2002
ASSETS
Current assets:
Cash and cash equivalents $63,105 $13,654
Trade receivables, net of allowances 253,126 227,579
Notes receivable 3,698 4,165
Other receivables 8,317 7,623
Prepaid expenses 18,866 15,142
Deferred tax assets 18,097 27,382
Other assets 7,731 10,760
Total current assets 372,940 306,305
Property and equipment, at cost, less
accumulated depreciation 71,621 81,652
Intangibles resulting from business
acquisitions and JLW merger,
net of accumulated amortization 347,608 333,821
Investments in and loans to real
estate ventures 71,335 74,994
Long-term receivables, net 13,007 15,248
Prepaid pension asset 11,920 9,646
Deferred tax assets 43,252 18,839
Debt issuance costs 4,113 4,343
Other assets, net 7,144 7,668
$942,940 $852,516
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $96,466 $92,389
Accrued compensation 154,317 139,513
Short-term borrowings 3,592 15,863
Deferred tax liabilities 2,623 20
Other liabilities 28,414 21,411
Total current liabilities 285,412 269,196
Long-term liabilities:
Credit facilities - 26,077
9% Senior Euro Notes, due 2007 207,816 173,068
Deferred tax liabilities 761 146
Other 17,960 17,071
Total liabilities 511,949 485,558
Commitments and contingencies
Stockholders' equity:
Common stock, $.01 par value per
share, 100,000,000 shares authorized;
31,762,077 and 30,896,333 shares issued
and outstanding as of December 31, 2003
and December 31, 2002, respectively 318 309
Additional paid-in capital 519,438 494,283
Deferred stock compensation (21,649) (17,321)
Retained deficit (59,346) (95,411)
Stock held by subsidiary (12,846) (4,659)
Stock held in trust (460) (460)
Accumulated other comprehensive income 5,536 (9,783)
Total stockholders' equity 430,991 366,958
$942,940 $852,516
Please reference attached financial statement notes.
JONES LANG LASALLE INCORPORATED
Summarized Consolidated Statements of Cash Flows
Twelve Months Ended December 31, 2003 and 2002
(in thousands)
(Unaudited)
2003 (D) 2002 (D)
Cash provided by earnings $100,027 $83,402
Cash provided by (used in) working capital 10,018 (15,033)
Cash used in investing activities (15,282) (26,340)
Cash used in financing activities (45,312) (38,821)
Net increase in cash 49,451 3,208
Cash and cash equivalents, beginning of period 13,654 10,446
Cash and cash equivalents, end of period $63,105 $13,654
Please reference attached financial statement notes.
JONES LANG LASALLE INCORPORATED
Schedule of Non-Recurring and Restructuring Charges
For the Three and Twelve Months Ended December 31, 2003 and 2002
(in thousands, except share data)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2003 2002 2003 2002
Non-Recurring &
Restructuring Charges
Land Investment &
Development Group
Impairment Charges - 975 - 2,979
Insolvent Insurance
Providers - - (606) -
Abandonment of Property
Management Accounting
System
- Compensation & Benefits - - 113 -
- Operating,
Administrative & Other 43 - 4,962 -
Merger Related Stock
Compensation (2,481) - (2,481) -
2001 Global Restructuring
Program
- Compensation & Benefits (261) (810) (164) (1,291)
- Operating,
Administrative & Other - (178) - (178)
2002 Global Restructuring
Program
- Compensation & Benefits 172 12,729 (2,101) 12,729
- Operating,
Administrative & Other 4,186 632 4,638 632
Total Non-Recurring &
Restructuring Charges
(Credits) 1,659 13,348 4,361 14,871
Net benefit for Income
Taxes on Non-Recurring and
Restructuring Charges (1,361) (4,479) (2,226) (5,027)
Additional Tax Benefit on
2001 Restructuring
Actions (3,000) - (3,000) (1,800)
Non-Recurring and
Restructuring Charges
(Credits) After Tax (2,702) 8,869 (865) 8,044
Diluted Weighted Average
Shares Outstanding 32,600,973 31,739,621 32,226,306 31,854,397
Per Share Impact of Non-
Recurring and
Restructuring Charges
(Credits) (0.08) 0.28 (0.03) 0.25
Please reference attached financial statement notes.
JONES LANG LASALLE INCORPORATED
CURRENCY ANALYSIS OF REVENUES AND OPERATING INCOME (LOSS)
(in millions)
(Unaudited)
Pound Australian US
Sterling Euro Dollar Dollar Other TOTAL
(E) $ $ $ (E) $ $ $
REVENUES (A)
2003
Q1, 2003 37.7 37.2 13.7 70.0 29.3 187.9
Q2, 2003 43.9 36.5 18.7 75.9 38.6 213.6
Q3, 2003 50.7 36.7 19.6 84.0 27.1 218.1
Q4, 2003 64.2 53.8 25.8 138.5 47.9 330.2
Total 196.5 164.2 77.8 368.4 142.9 949.8
2002
Q1, 2002 34.9 32.7 12.4 63.3 26.6 169.9
Q2, 2002 47.1 32.2 16.5 70.2 33.8 199.8
Q3, 2002 43.6 35.7 17.1 89.7 30.4 216.5
Q4, 2002 60.4 46.3 17.4 108.5 43.8 276.4
Total 186.0 146.9 63.4 331.7 134.6 862.6
OPERATING INCOME (LOSS) (E)
2003
Q1, 2003 -2.6 2.9 -1.4 -2.4 -3.4 -6.9
Q2, 2003 -0.4 0.1 -4.1 1.9 5.3 2.8
Q3, 2003 4.8 1.9 0.7 7.4 1.2 16.0
Q4, 2003 7.1 3.9 2.4 31.1 5.8 50.3
Total 8.9 8.8 -2.4 38.0 8.9 62.2
2002
Q1, 2002 -2.5 3.8 -2.5 -1.0 -1.9 -4.1
Q2, 2002 7.2 -0.2 -0.3 2.9 2.7 12.3
Q3, 2002 1.8 2.6 0.4 13.8 -0.8 17.8
Q4, 2002 9.0 1.3 5.7 10.5 2.2 28.7
Total 15.5 7.5 3.3 26.2 2.2 54.7
AVERAGE EXCHANGE RATES
Q1, 2003 1.600 1.075 0.595 N/A N/A N/A
Q2, 2003 1.624 1.140 0.644 N/A N/A N/A
Q3, 2003 1.617 1.130 0.656 N/A N/A N/A
Q4, 2003 1.718 1.202 0.718 N/A N/A N/A
Q1, 2002 1.426 0.877 0.520 N/A N/A N/A
Q2, 2002 1.464 0.924 0.553 N/A N/A N/A
Q3, 2002 1.551 0.985 0.548 N/A N/A N/A
Q4, 2002 1.576 1.004 0.559 N/A N/A N/A
Please reference attached financial statement notes.
JONES LANG LASALLE INCORPORATED
Financial Statement Notes
(A) Certain amounts described below have been reclassified to conform with
the current presentation. These reclassifications have no impact on
operating income (loss), net income or cash flows for any of
the periods affected.
Beginning in December 2002, pursuant to the FASB's Emerging Issues
Task Force ("EITF") No. 01-14, "Income Statement Characterization of
Reimbursements Received for 'Out-of-Pocket' Expenses Incurred", we
have reclassified reimbursements received for out-of-pocket expenses
to revenues in the income statement, as opposed to being shown as a
reduction of expenses. These out-of-pocket expenses amounted to
$1.5 million and $5.4 million in the three and twelve months ended
December 31, 2003, respectively, and $1.3 million and $4.3 million
in the three and twelve months ended December 31, 2002,
respectively.
Beginning in December 2002, we reclassified as revenue our recovery
of indirect costs related to our management services business, as
opposed to being classified as a reduction of expenses in the income
statement. The amount of reimbursables totaled $10.2 million and
$37.8 million in the three and twelve months ended December 31,
2003, respectively, and $7.7 million and $30.5 million in the three
and twelve months ended December 31, 2002, respectively.
(B) EBITDA represents earnings before interest expense, income taxes,
depreciation and amortization, and excludes Minority Interests in
EBITDA. For the twelve months ended December 31, 2002, EBITDA
excludes the cumulative effect of change in accounting principle
resulting from the adoption of SFAS 142. Management believes that
EBITDA is useful to investors as a measure of operating performance,
cash generation and ability to service debt. EBITDA is
also used in the calculation of certain covenants related to our
revolving credit facility. However, EBITDA should not be considered
an alternative to (i) net income (determined in accordance
with GAAP), (ii) cash flows (determined in accordance with GAAP), or
(iii) liquidity.
Reconciliation from operating income to EBITDA (in thousands):
Three Months Twelve Months
Ended Ended
December 31, December 31,
2003 2002 2003 2002
Operating income $50,301 $28,748 $62,186 $54,695
Plus: Depreciation and
amortization 8,886 8,886 36,944 37,125
Less: Minority interests in
EBITDA - 810 - (1,098)
EBITDA $59,187 $38,444 $99,130 $90,722
(C) For purposes of this analysis we have determined that the allocation
of the non-recurring charges to our segments is not meaningful to
investors. Additionally, we evaluate the performance of our segment
results without these charges being allocated.
(D) The consolidated statements of cash flows are presented in summarized
form. Please reference our Annual Report on Form 10-K for detailed
consolidated statements of cash flows.
(E) The objective of this presentation is to provide guidance as to the
key currencies that the Company does business in and their
significance to reported revenues and operating income. The
operating income sourced in pound sterling and US dollars
understates the profitability of the businesses in the United
Kingdom and America because it includes the locally incurred
expenses of our global offices in London and Chicago, respectively,
as well as the European regional office in London. The revenues and
operating income of the global investment management business are
allocated to their underlying currency, which means that this
analysis may not be consistent with the performance of the
geographic OOS segments. In particular, as incentive fees are
earned by this business, there may be significant shifts in the
geographic mix of revenues and operating income.
SOURCE Jones Lang LaSalle Incorporated
-0- 02/04/2004
/CONTACT: Lauralee Martin, Chief Financial Officer of Jones Lang LaSalle
Incorporated, +1-312-228-2073/
/Web site: http://www.joneslanglasalle.com /
(JLL)
CO: Jones Lang LaSalle Incorporated
ST: Illinois
IN: FIN RLT
SU: ERN CCA