EXHIBIT 99.1
- ------------
PRESS RELEASE
- -------------
Contact: Bill Sullivan
Chief Financial Officer
+1 312 228 2685 or
+44 171 399 5252
JONES LANG LASALLE REPORTS 1999 RESULTS
---------------------------------------
1999 ADJUSTED NET EARNINGS EQUAL $1.07 PER SHARE
TO EXCEED CONSENSUS ESTIMATES BY $.07; COMPANY EXPECTS 30% GROWTH
IN ADJUSTED NET EARNINGS PER SHARE IN 2000
CHICAGO AND LONDON, FEBRUARY 9, 2000 - Jones Lang LaSalle Incorporated
(NYSE: JLL) today announced adjusted pro forma net earnings of $32.3
million, or $1.07 per diluted share, for the calendar year ended
December 31, 1999, on revenues of $813.9 million. Adjusted pro forma
EBITDA for the full year totaled $112.2 million. The full year adjusted
pro forma net earnings per share exceeded consensus analyst estimates by
$0.07.
For the fourth quarter 1999, the Company reported adjusted net earnings of
$45.9 million, or $1.51 per diluted share, on revenues of $280.7 million.
Adjusted EBITDA for the fourth quarter 1999 totaled $92.5 million.
The adjusted pro forma results include the operating results of the Jones
Lang Wootton companies for the two months ended February 28, 1999, and
exclude the non-recurring transition and integration costs and non-cash
compensation expenses associated with the Jones Lang Wootton merger and the
acquisition of COMPASS Management and Leasing and the U.S. retail
businesses of Lend Lease Corporation Limited.
The Company reported an actual net loss for the year of $94.8 million, or
$4.20 per diluted share, compared with earnings of $20.5 million, or $1.25
per diluted share from the comparable prior year period. For the fourth
quarter 1999, Jones Lang LaSalle generated net earnings of $15.2 million,
or $0.63 per diluted share, compared with net earnings of $11.8 million, or
$0.72 per diluted share for the 1998 fourth quarter. The 1999 full year
and fourth quarter actual results include $101.6 and $19.2 million,
respectively, of non-cash compensation expenses associated with the
issuance of shares pursuant to the merger between LaSalle Partners and the
Jones Lang Wootton companies. The results also include $49.8 million and
$16.8 million, respectively, of non-recurring transition and integration
costs associated with the Jones Lang Wootton merger and the acquisition of
COMPASS Management and Leasing and the U.S. retail businesses of Lend Lease
Corporation Limited.
-- more -
JONES LANG LASALLE ANNOUNCES 1999 RESULTS - Add One
The fourth quarter and full year 1999 results include a pre-tax gain of
approximately $7.5 million associated with the disposition of the Company's
former construction subsidiary, which was sold in a leveraged buy-out in
December 1996. As previously announced, U.S. GAAP accounting requirements,
in relation to the terms of the sale, had not permitted the recognition of
this gain in prior years.
According to Stuart L. Scott, Chairman and Chief Executive Officer of Jones
Lang LaSalle, management is extremely pleased with the fourth quarter
results. "Our progress during the last six months of the year in
addressing the performance initiatives outlined in the beginning of the
third quarter of 1999, as well as our significant new business activity in
the fourth quarter, together have created solid footing for a successful
and improved 2000.
"In January this year, we announced cost savings expectations from several
initiatives we had implemented in the Americas' Owner & Occupier Services
segment to improve operating performance and help capture approximately
$20 million in cost efficiencies by the end of 2001. This program began to
show its substantial positive effect, primarily within the Americas'
operations and its leasing and management business, in the fourth quarter
of 1999. Through the implementation of these various initiatives, we
expect to achieve savings of $15 million in 2000 and total run-rate savings
of $20 million by 2001," said Mr. Scott.
He continued, "In addition to making progress on our cost-savings program
in the fourth quarter, we also validated our merger and growth platform by
gaining significant new business, expanding key client relationships, and
completing several investment initiatives."
Highlights of Jones Lang LaSalle's segment activities during the fourth
quarter 1999 include:
. Securing notable new business across the Americas, Europe and
Asia Pacific Owner and Occupier Services' regions, including: expanding
the McDonald's Corporation assignment to include project management
services in the United States as well as Citibank facility responsibilities
into Panama, Colombia and Venezuela; retaining advisory and disposition
services for a sizable Deutsche Telekom portfolio in Germany; and closing
the fourth and final sale of a $100 million luxury residential development
in Hong Kong.
. Executing the first and second closings of LaSalle Investment
Management's new Income and Growth II fund to raise commitments of $110
million toward approximately $220 million of new investments in a
diversified portfolio of value-added properties in the United States. A
target of $150-200 million in additional funding is expected in the first
half of 2000.
-- more --
JONES LANG LASALLE ANNOUNCES 1999 RESULTS - Add Two
. Completing the euros 110 million first closing of the Euro 5
Fund, a newly launched LaSalle Investment Management vehicle that targets
property investments in France, Germany, Spain, Italy and Portugal. With a
goal of ultimately raising euros 200-250 million in equity, a second
closing of euros 100-150 million is anticipated in the first half of 2000.
HIGHLIGHTS OF BUSINESS SEGMENT PERFORMANCE
- ------------------------------------------
Chris Peacock, President and Chief Operating Officer stated that fourth
quarter performance was very positive, with strong revenue and operating
earnings momentum recorded in each of the five business segments.
"Our management teams, particularly in the Americas' Owner & Occupier
Services segment, demonstrated a commitment to improving results this
quarter and establishing strong backlogs in their businesses going into
2000. We also have made a concerted effort to leverage our merger platform
to add client value and expand business opportunities. Through these
combined efforts, we believe we are on track to meet our management plan of
approximately 30 percent growth in adjusted net earnings per share this
year," added Mr. Peacock.
OWNER & OCCUPIER SERVICES
- -------------------------
Jones Lang LaSalle's Owner & Occupier Services segments include the
Company's property management, corporate property services, leasing,
retail, tenant representation, investment banking and other transaction
services in three regions. Beginning with the fourth quarter reporting
period, Jones Lang LaSalle has consolidated the operations of its former
Australasia and Asian segments into a single Asia Pacific segment,
reflecting the unification of these regions as announced on December 21,
1999.
Consistent with historical seasonal trends of increasing revenues and
profitability in the fourth quarter of the year, the Americas region
reported operating income of $51.3 million on revenues of $120.4 million
for the quarter. For the full year 1999, the Americas region generated pro
forma operating income of $24.8 million on total pro forma revenues of
$296.8 million. The pro forma results are inclusive of the operating
results of the Jones Lang Wootton companies for the two months ended
February 28, 1999.
The European region generated fourth quarter operating income of $17.7
million on total revenues of $89.6 million. For the full year ended
December 31, 1999, the European region reported pro forma operating income
of $28.5 million on total pro forma revenues of $290.5 million.
-- more --
JONES LANG LASALLE ANNOUNCES 1999 RESULTS - Add Three
The Asia Pacific region reported fourth quarter operating income of $4.4
million on total revenues of $39.4 million, bringing its year-to-date pro
forma operating income to $4.9 million on total pro forma revenue of $129.3
million.
HOTEL SERVICES
- --------------
Hotel Services reported operating income of $2.4 million in the fourth
quarter on revenue of $6.0 million. For the full year 1999, this segment
reported pro forma operating income of $2.2 million on total pro forma
revenue of $15.1 million.
INVESTMENT MANAGEMENT
- ---------------------
LaSalle Investment Management recorded revenues of $27.3 million in the
quarter, generating an operating profit of $6.8 million. Pro forma
operating income for the full year 1999 was $12.0 million on total pro
forma revenue of $86.1 million.
Jones Lang LaSalle (NYSE: JLL) is the world's leading real estate services
and investment management firm, operating across more than 100 key markets
on five continents. The company provides comprehensive and wide ranging
integrated expertise, including property and facility management,
transaction and investment management core services on a local, regional
and global level to owners, occupiers and investors. LaSalle Investment
Management, the company's investment management business, is the world's
second largest and most diverse real estate investment management firm,
with approximately $21.5 billion ((Pound/Sterling)13.3 billion) of assets
under management. Jones Lang LaSalle also is the industry leader in real
estate management services, with a portfolio of approximately 700 million
square feet (65 million square meters) of property under management
worldwide.
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 LASALLE PARTNERS' ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER
31, 1998, UNDER "RISK FACTORS," "THE TRANSACTIONS," "THE PURCHASE
AGREEMENTS," "JLW MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS OF THE JLW COMPANIES," AND ELSEWHERE IN
LASALLE PARTNERS' PROXY STATEMENT DATED FEBRUARY 4, 1999, 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 REPORTS ON FORM 10-Q FOR
THE QUARTERS ENDED MARCH 31, 1999, JUNE 30, 1999 AND SEPTEMBER 30, 1999,
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.
# # #
NOTE TO EDITORS:
- ---------------
. Media contacts may listen to the Jones Lang LaSalle fourth
quarter results discussion at 9 a.m. EST on February 9 with investors and
market analysts by dialing +1 719 457 2630.
. A replay of the call may be accessed by dialing +1 719 457 0820
outside the United States and +1 888 203 1112 in the United States from
noon EST on February 9, 2000 through 6:00 p.m. EST on February 15, 2000.
The replay passcode is 888850.
JONES LANG LASALLE INCORPORATED
Consolidated Statements of Earnings and Comprehensive Income
For the Three and Twelve Months Ended December 31, 1999 and 1998
(in thousands, except share data)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
---------------------------- ----------------------------
1999 1998 1999 1998
---------- ---------- ---------- ----------
Revenue:
Fee based services . . . . . . . . . $ 268,593 112,229 736,042 298,296
Equity in earnings from
unconsolidated ventures. . . . . . 1,796 1,571 6,218 3,911
Gain on sale of business . . . . . . 7,502 -- 7,502 --
Other income . . . . . . . . . . . . 2,811 555 5,677 2,257
---------- ---------- ---------- ----------
Total revenue. . . . . . . . . 280,702 114,355 755,439 304,464
Operating expenses:
Compensation and benefits. . . . . . 142,409 56,207 477,658 172,982
Operating, administrative
and other. . . . . . . . . . . . . 45,830 20,107 161,007 70,164
Depreciation and amortization. . . . 9,950 5,278 36,676 13,455
---------- ---------- ---------- ----------
Total operating expenses
before merger related
non-recurring charges. . . . 198,189 81,592 675,341 256,601
---------- ---------- ---------- ----------
Operating income before
merger related non-
recurring charges. . . . . . 82,513 32,763 80,098 47,863
Merger related non-recurring charges:
Stock compensation expense . . . . . 19,196 -- 101,579 --
Integration and transition expense . 16,833 10,021 49,822 10,021
---------- ---------- ---------- ----------
Total merger related
non-recurring charges. . . . 36,029 10,021 151,401 10,021
---------- ---------- ---------- ----------
Total operating expenses . . . 234,218 91,613 826,742 266,622
---------- ---------- ---------- ----------
Operating income (loss). . . . 46,484 22,742 (71,303) 37,842
Interest expense . . . . . . . . . . . 5,899 3,161 18,211 4,153
---------- ---------- ---------- ----------
JONES LANG LASALLE INCORPORATED
Consolidated Statements of Earnings and Comprehensive Income - CONTINUED
Three Months Ended Twelve Months Ended
December 31, December 31,
---------------------------- ----------------------------
1999 1998 1999 1998
---------- ---------- ---------- ----------
Earnings (loss) before
provision for income taxes . 40,585 19,581 (89,514) 33,689
Net provision for income taxes . . . . 25,371 7,792 5,328 13,224
---------- ---------- ---------- ----------
Net earnings (loss). . . . . . $ 15,214 11,789 (94,842) 20,465
========== ========== ========== ==========
Other comprehensive income, net of tax:
Foreign currency translation
adjustments. . . . . . . . . . . . $ (2,964) (98) 23 444
---------- ---------- ---------- ----------
Comprehensive income (loss). . . . . $ 12,250 11,691 (94,819) 20,909
========== ========== ========== ==========
Basic earnings (loss)
per common share . . . . . . . . . . $ 0.63 0.73 (4.20) 1.26
========== ========== ========== ==========
Basic weighted average shares
outstanding. . . . . . . . . . . . . 24,103,856 16,230,726 22,607,350 16,215,478
========== ========== ========== ==========
Diluted earnings (loss)
per common share . . . . . . . . . . $ 0.63 0.72 (4.20) 1.25
========== ========== ========== ==========
Diluted weighted average shares
outstanding. . . . . . . . . . . . . 24,258,577 16,322,327 22,607,350 16,387,721
========== ========== ========== ==========
JONES LANG LASALLE INCORPORATED
Adjusted Pro Forma Consolidated Statements of Earnings
Twelve Months Ended December 31, 1999 and 1998
(in thousands, except share data)
(Unaudited)
1999 Results
----------------------------------------------------------------------
First 1998
Quarter Full Year Full Year
Adjusted Second Third Fourth Adjusted Adjusted
Pro Forma Quarter Quarter Quarter Pro Forma Pro Forma
(1) Actual Actual Actual (1) (2)
---------- ---------- ---------- ---------- ---------- ----------
Revenue:
Fee-based services . . . . $ 159,118 175,391 190,979 268,593 794,081 830,334
Equity in earnings from
unconsolidated
ventures . . . . . . . . 181 1,870 2,371 1,796 6,218 3,911
Gain on sale of
business . . . . . . . . -- -- -- 7,502 7,502 --
Other income . . . . . . . 582 1,883 822 2,811 6,098 14,080
---------- ---------- ---------- ---------- ---------- ----------
Total revenue. . . . . 159,881 179,144 194,172 280,702 813,899 848,325
Operating expenses:
Compensation and
benefits . . . . . . . . 119,049 124,640 135,170 142,409 521,268 472,262
Operating, adminis-
trative and other. . . . 50,777 47,273 36,587 45,830 180,467 251,605
Depreciation and
amortization . . . . . . 10,002 10,106 9,665 9,950 39,723 37,075
---------- ---------- ---------- ---------- ---------- ----------
Total operating
expenses excluding
merger related
non-recurring
charges. . . . . . 179,828 182,019 181,422 198,189 741,458 760,942
---------- ---------- ---------- ---------- ---------- ----------
Adjusted operating
income (loss)
excluding merger
related non-
recurring charges. (19,947) (2,875) 12,750 82,513 72,441 87,383
Interest expense . . . . . . 2,549 4,703 4,967 5,899 18,118 14,736
---------- ---------- ---------- ---------- ---------- ----------
JONES LANG LASALLE INCORPORATED
Adjusted Pro Forma Consolidated Statements of Earnings - CONTINUED
1999 Results
----------------------------------------------------------------------
First 1998
Quarter Full Year Full Year
Adjusted Second Third Fourth Adjusted Adjusted
Pro Forma Quarter Quarter Quarter Pro Forma Pro Forma
(1) Actual Actual Actual (1) (2)
---------- ---------- ---------- ---------- ---------- ----------
Adjusted earnings
(loss) before
provision (benefit)
for income taxes . (22,496) (7,578) 7,783 76,614 54,323 72,647
Net provision (benefit)
for income taxes . . . . . (8,700) (2,880) 2,958 30,674 22,052 27,727
Minority interest. . . . . . -- -- -- -- -- 658
---------- ---------- ---------- ---------- ---------- ----------
Adjusted net earnings
(loss) excluding
merger related
non-recurring
charges. . . . . . $ (13,796) (4,698) 4,825 45,940 32,271 44,262
========== ========== ========== ========== ========== ==========
Adjusted EBITDA (3). . . . . $ (9,945) 7,231 22,415 92,463 112,164 123,800
========== ========== ========== ========== ========== ==========
Adjusted earnings (loss)
per common share (4) . . . $ (0.45) (0.15) 0.16 1.51 1.07 1.44
========== ========== ========== ========== ========== ==========
Adjusted weighted average
shares outstanding (4) . . 30,538,404 30,566,160 30,189,696 30,335,735 30,298,332 30,644,227
========== ========== ========== ========== ========== ==========
<FN>
(1) First Quarter Adjusted Pro Forma results and Full Year Adjusted Pro Forma results for 1999 give effect to
the operating results of the Jones Lang Wootton companies for the two months ended February 28, 1999, the period
prior to their merger with LaSalle Partners Incorporated, amortization expense of the goodwill resulting from the
merger as if the merger occurred on January 1, 1999, and a benefit for taxes as if the Jones Lang Wootton
companies and LaSalle Partners Incorporated were taxable entities at an effective tax rate of 40% as of January 1,
1999. No effect has been given to the compensation expense incurred associated with the issuance of shares to
former employees of Jones Lang Wootton. Further, this analysis excludes the effect of merger related non-
recurring expenses associated with the merger with Jones Lang Wootton and the acquisition of Compass. This
analysis is not intended to be a presentation in accordance with generally accepted accounting principles.
JONES LANG LASALLE INCORPORATED
Adjusted Pro Forma Consolidated Statements of Earnings - CONTINUED
(2) Full Year Adjusted Pro Forma results for 1998 gives effect to the operations of Compass and the Jones Lang
Wootton companies for the twelve months ended December 31, 1998 as if the acquisition and merger occurred on
January 1, 1998, amortization expense of the goodwill resulting from the transactions, and a benefit for taxes as
if Compass, the Jones Lang Wootton companies and LaSalle Partners Incorporated were taxable entities at an
effective tax rate of 38% as of January 1, 1998. No effect has been given to the compensation expense incurred
associated with the issuance of shares to former employees of Jones Lang Wootton. Further, this analysis excludes
the effect of merger related non-recurring expenses associated with the merger with Jones Lang Wootton and the
acquisition of Compass. This analysis is not intended to be a presentation in accordance with generally accepted
accounting principles.
(3) Adjusted EBITDA represents earnings before interest expense, income taxes, depreciation and amortization and
merger related non-recurring charges. Merger related non-recurring charges represent non-cash compensation
expense resulting from the issuance of shares to former Jones Lang Wootton employees including the effect of
quarterly adjustments on certain of those shares as a result of changes in the stock price, in addition to non-
capitalizable integration and transition costs incurred related to the acquisition of Compass and the merger with
Jones Lang Wootton.
(4) Adjusted earnings per common share represents adjusted net earnings divided by the weighted average
committed shares outstanding. Committed shares are inclusive of shares subject to forfeiture, vesting, indemnity
and adjustment provisions which are not considered in the calculation of weighted average basic or diluted shares
outstanding under generally accepted accounting principles. Committed shares outstanding for the three and twelve
months ended December 31, 1999 and for the twelve months ended December 31, 1998 reflect the return of certain
adjustment shares, in accordance with the purchase and sale agreement, as of January 1, 1998.
Certain amounts have been reclassified to conform with the current quarter presentation.
JONES LANG LASALLE INCORPORATED
Segment Operating Results
Quarterly Adjusted Pro Forma Results for the Twelve Months ended December 31, 1999
(in thousands)
(Unaudited)
First
Quarter Full Year
Adjusted Second Third Fourth Adjusted
Pro Forma Quarter Quarter Quarter Pro Forma
(1) Actual Actual Actual (1)
---------- ---------- ---------- ---------- ----------
OWNER & OCCUPIER SERVICES -
AMERICAS
Revenue:
Implementation services. . . . . . . . $ 19,105 23,173 43,010 70,152 155,440
Management fees. . . . . . . . . . . . 26,610 28,739 26,257 35,789 117,395
Equity earnings. . . . . . . . . . . . (180) 281 178 594 873
Gain on sale of business . . . . . . . -- -- -- 7,502 7,502
Other services . . . . . . . . . . . . 2,247 2,246 2,901 4,489 11,883
Intersegment revenue . . . . . . . . . 62 78 1,619 1,902 3,661
---------- ---------- ---------- ---------- ----------
47,844 54,517 73,965 120,428 296,754
Operating expenses:
Compensation, operating and
administrative . . . . . . . . . . . 65,023 60,431 61,895 64,471 251,820
Depreciation and amortization. . . . . 5,324 5,033 5,076 4,691 20,124
---------- ---------- ---------- ---------- ----------
Operating income (loss). . . . . $ (22,503) (10,947) 6,994 51,266 24,810
========== ========== ========== ========== ==========
EUROPE
Revenue:
Implementation services. . . . . . . . $ 45,396 46,808 45,295 61,023 198,522
Management fees. . . . . . . . . . . . 15,697 20,841 22,216 27,407 86,161
Equity earnings. . . . . . . . . . . . (21) (72) (132) 6 (219)
Other services . . . . . . . . . . . . 4,012 434 416 1,143 6,005
---------- ---------- ---------- ---------- ----------
65,084 68,011 67,795 89,579 290,469
Operating expenses:
Compensation, operating and
administrative . . . . . . . . . . . 57,665 60,186 65,230 69,225 252,306
Depreciation and amortization. . . . . 2,257 2,357 2,399 2,676 9,689
---------- ---------- ---------- ---------- ----------
Operating income . . . . . . . . $ 5,162 5,468 166 17,678 28,474
========== ========== ========== ========== ==========
JONES LANG LASALLE INCORPORATED
Segment Operating Results - CONTINUED
First
Quarter Full Year
Adjusted Second Third Fourth Adjusted
Pro Forma Quarter Quarter Quarter Pro Forma
(1) Actual Actual Actual (1)
---------- ---------- ---------- ---------- ----------
ASIA PACIFIC
Revenue:
Implementation services. . . . . . . . $ 13,640 20,324 18,594 25,449 78,007
Management fees. . . . . . . . . . . . 9,700 11,128 10,529 11,526 42,883
Equity earnings. . . . . . . . . . . . (24) 24 -- 117 117
Other services . . . . . . . . . . . . 1,433 1,958 2,554 2,314 8,259
---------- ---------- ---------- ---------- ----------
24,749 33,434 31,677 39,406 129,266
Operating expenses:
Compensation, operating and
administrative . . . . . . . . . . . 28,096 30,043 26,973 33,255 118,367
Depreciation and amortization. . . . . 1,407 1,648 1,200 1,722 5,977
---------- ---------- ---------- ---------- ----------
Operating income (loss). . . . . $ (4,754) 1,743 3,504 4,429 4,922
========== ========== ========== ========== ==========
HOTEL SERVICES -
Revenue:
Implementation services. . . . . . . . $ 1,850 2,246 2,511 4,478 11,085
Management fees. . . . . . . . . . . . -- 473 470 358 1,301
Other services . . . . . . . . . . . . 371 462 734 1,179 2,746
---------- ---------- ---------- ---------- ----------
2,221 3,181 3,715 6,015 15,132
Operating expenses:
Compensation, operating and
administrative . . . . . . . . . . . 2,295 3,619 3,182 3,619 12,715
Depreciation and amortization. . . . . 68 50 45 43 206
---------- ---------- ---------- ---------- ----------
Operating income (loss). . . . . $ (142) (488) 488 2,353 2,211
========== ========== ========== ========== ==========
JONES LANG LASALLE INCORPORATED
Segment Operating Results - CONTINUED
First
Quarter Full Year
Adjusted Second Third Fourth Adjusted
Pro Forma Quarter Quarter Quarter Pro Forma
(1) Actual Actual Actual (1)
---------- ---------- ---------- ---------- ----------
INVESTMENT MANAGEMENT -
Revenue:
Implementation services. . . . . . . . $ 1,942 4,431 2,078 3,373 11,824
Advisory fees. . . . . . . . . . . . . 17,191 14,190 14,153 22,603 68,137
Equity earnings. . . . . . . . . . . . 406 1,637 2,325 1,079 5,447
Other services . . . . . . . . . . . . 506 (179) 83 121 531
Intersegment revenue . . . . . . . . . 35 (35) -- 136 136
---------- ---------- ---------- ---------- ----------
20,080 20,044 18,639 27,312 86,075
Operating expenses:
Compensation, operating and
administrative . . . . . . . . . . . 16,843 17,678 16,096 19,707 70,324
Depreciation and amortization. . . . . 947 1,017 945 818 3,727
---------- ---------- ---------- ---------- ----------
Operating income . . . . . . . . $ 2,290 1,349 1,598 6,787 12,024
========== ========== ========== ========== ==========
Total segment revenue. . . . . . . . . . . $ 159,978 179,187 195,791 282,740 817,696
Intersegment revenue eliminations. . . . . (97) (43) (1,619) (2,038) (3,797)
---------- ---------- ---------- ---------- ----------
Total revenue. . . . . . . . . . $ 159,881 179,144 194,172 280,702 813,899
========== ========== ========== ========== ==========
Total segment operating expenses . . . . . $ 179,925 182,062 183,041 200,227 745,255
Intersegment operating expense
eliminations . . . . . . . . . . . . . . (97) (43) (1,619) (2,038) (3,797)
---------- ---------- ---------- ---------- ----------
Total operating expenses
excluding merger related
non-recurring charges. . . . . $ 179,828 182,019 181,422 198,189 741,458
========== ========== ========== ========== ==========
Operating income (loss)
excluding merger related
non-recurring charges. . . . . $ (19,947) (2,875) 12,750 82,513 72,441
========== ========== ========== ========== ==========
JONES LANG LASALLE INCORPORATED
Segment Operating Results - CONTINUED
<FN>
(1) First Quarter Adjusted Pro Forma results and Full Year Adjusted Pro Forma results give effect to the
operating results of the Jones Lang Wootton Companies for the two months ended February 28, 1999, the period prior
to their merger with LaSalle Partners Incorporated and amortization expense of the goodwill resulting from the
merger as if the merger occurred on January 1, 1999. No effect has been given to the compensation expense
incurred associated with the issuance of shares to former employees of Jones Lang Wootton. Further, this analysis
excludes the effect of merger related non-recurring expenses associated with the merger with Jones Lang Wootton
and the acquisition of Compass. This analysis is not intended to be a presentation in accordance with generally
accepted accounting principles.
JONES LANG LASALLE INCORPORATED
Consolidated Balance Sheets
December 31, 1999, September 30, 1999, June 30, 1999 and December 31, 1998
(in thousands)
(Unaudited)
December 31, December 31,
1999 1998
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents. . . $ 23,308 16,941
Trade receivables, net of
allowances . . . . . . . . . 270,593 116,965
Notes receivable and advances
to real estate ventures. . . 4,519 17,042
Other receivables. . . . . . . 7,045 3,385
Income tax refund receivable . 14,500 --
Prepaid expenses . . . . . . . 9,598 2,185
Deferred tax benefit . . . . . 13,673 9,926
Other assets . . . . . . . . . 5,446 --
---------- ----------
Total current assets . . 348,682 166,444
Property and equipment,
at cost, less accumulated
depreciation . . . . . . . . . 76,470 28,773
Intangibles resulting from
business acquisitions,
net of accumulated
amortization . . . . . . . . . 367,215 229,437
Investments in real estate
ventures . . . . . . . . . . . 67,305 52,976
Long-term receivables, net . . . 27,962 10,950
Deferred tax asset . . . . . . . 5,270 660
Prepaid pension asset. . . . . . 23,956 --
Other assets, net. . . . . . . . 7,940 1,681
---------- ----------
$ 924,800 490,921
========== ==========
JONES LANG LASALLE INCORPORATED
Consolidated Balance Sheets - CONTINUED
December 31, December 31,
1999 1998
------------ ------------
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and
accrued liabilities. . . . . $ 88,257 51,101
Accrued compensation . . . . . 142,960 58,398
Short-term borrowings. . . . . 162,643 --
Other liabilities. . . . . . . 26,259 8,324
---------- ----------
Total current
liabilities. . . . . . 420,119 117,823
Long-term liabilities:
Credit facilities. . . . . . . 159,743 202,923
Deferred tax liability . . . . 7,535 --
Other. . . . . . . . . . . . . 12,878 603
---------- ----------
Total liabilities. . . . 600,275 321,349
Minority interest. . . . . . . . 589 --
Stockholders' equity:
Common stock, $.01 par value
per share, 100,000,000 shares
authorized; 30,285,472 shares
issued and outstanding . . . . 303 163
Additional paid-in capital . . 442,699 123,543
Unallocated ESOT shares. . . . (7) --
Deferred stock compensation. . (70,106) --
Retained earnings (deficit). . (50,050) 44,792
Accumulated other compre-
hensive income . . . . . . . 1,097 1,074
---------- ----------
Total stockholders'
equity . . . . . . . . 323,936 169,572
---------- ----------
$ 924,800 490,921
========== ==========