EXHIBIT 99
- ----------
JONES LANG LASALLE NEWS RELEASE
For Immediate Release 200 East Randolph Drive
Chicago Illinois 60601
22 Hanover Square
London W1A 2BN
Contact: Peter Roberts
Chief Financial Officer
Phone: +1 312 228 2017
JONES LANG LASALLE REPORTS SECOND QUARTER RESULTS
CHICAGO AND LONDON, JULY 31, 2001 - Jones Lang LaSalle Incorporated
(NYSE: JLL), the leading global real estate services and investment
management firm, today reported a second quarter net loss of $1.9 million,
or $.06 per share, just below the range it had forecast three months ago.
This result compares to a net loss of $12.4 million, or $.50 per share, for
the second quarter of 2000. The comparable adjusted net income for the
second quarter of 2000 was $6.7 million, or $.22 per share, which excludes
non-cash compensation expense of $18.9 million associated with the Jones
Lang Wootton merger.
For the second quarter of 2001, adjusted EBITDA was $14.9 million versus
$28.3 million for the same period of 2000. Revenues were $198.6 million
compared with $223.3 million in the comparable period a year ago.
"While we were slightly below our expectations for the quarter, we are not
disappointed in our results given the continued slowdown of the global
economy," said Stuart L. Scott, Chairman and Chief Executive Officer of
Jones Lang LaSalle. "However, with the timing of any recovery uncertain,
we are adjusting our earnings expectations for the full year to no less
than $1.31 per share, which matches our 2000 adjusted earnings. At a time
when the effects of the downturn in the U.S. economy are spreading around
the world, we believe matching last year's outstanding results will
underscore the resilience and strength of the platform we have built to
serve our clients."
BUSINESS SEGMENT PERFORMANCE HIGHLIGHTS
Chris Peacock, President and Chief Operating Officer of Jones Lang LaSalle,
said: "Despite the current realities of the worldwide economy, we are
encouraged by our strong backlog and new wins in many of our businesses.
In an effort to address this challenging environment, we are cutting
discretionary costs in every area of our Company. During this period, our
primary focus will be, as always, to help our clients with their real
estate and investment decisions."
The following summary of business segment results compares the second
quarter of 2001 to the same period of the previous year. The segment
results have been restated to reflect both the consolidation of the former
Hotel Services segment into the regional Owner and Occupier Services
segments and the implementation of SAB 101 for the year 2000.
1
JONES LANG LASALLE REPORTS SECOND QUARTER RESULTS - ADD ONE
OWNER AND OCCUPIER SERVICES
. The Americas region had another strong quarter, with revenues up
nearly 10 percent to $74.5 million in the current year versus $67.4
million in the second quarter of 2000 due primarily to a 17 percent
increase in the management services business. Operating expenses
included a $1.0 million write-off against an e-commerce investment
and $1.5 million for severance fees. Increased expenses resulted
in $2.1 million of operating income versus $3.9 million last year.
. In Europe, the second quarter operating income of $5.0 million was
roughly equal to last year's period. Revenues of $78.2 million were
essentially flat after considering the impact of almost $12 million
in revenue concentrated in two capital markets transactions in the
prior year.
. Economic fundamentals in Asia Pacific continued to worsen, causing
the region to report an operating loss of $2.9 million in the second
quarter compared with a loss of $1.5 million last year. Revenues
declined to $28.3 million this period versus $33.7 million in the
second quarter of 2000, entirely as a result of reduced transaction
business. Management services income continued its positive
momentum.
INVESTMENT MANAGEMENT
. LaSalle Investment Management recorded second quarter revenues of
$18.2 million and an operating loss of $0.5 million versus revenues
of $30.8 million and an operating income of $9.9 million in the prior
year. The difference was the direct result of the confluence of
several large incentive fees in last year's second quarter.
OUTLOOK FOR REMAINDER OF 2001
"Our business is strong and our clients are consistently turning to us for
our global capabilities, but the current worldwide economic slowdown has
caused them to focus intensely on controlling costs. While this situation
bodes well for our outsourcing business, the uncertainty has resulted in
clients hesitating to enter into major commitments and delaying many
planned projects. As a result, we are revising our guidance on full year
operating EPS to at least $1.31, which is equal to last year's performance
(after implementing SAB 101). This figure would exclude one-time charges,
if any, for creating operational efficiencies," said Mr. Scott.
In addition, the forecast does not include the impact of certain previously
disclosed one-time, non-operational issues:
. The undetermined exposure, which is not expected to exceed $1.5
million, due to the liquidation of a large Australian insurance
company that provided public liability coverage for the Company's
Australian operations from 1994 through 1997; and
. The effect of the turbulence in the technology capital markets on the
Company's e-commerce investments.
2
JONES LANG LASALLE REPORTS SECOND QUARTER RESULTS - ADD TWO
Jones Lang LaSalle is the world's leading real estate services and
investment management firm, operating across more than 100 markets on five
continents. 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 700 million square feet (65 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 more than $23 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, 2000, in Jones Lang LaSalle's Proxy Statement dated April 6,
2001, in Jones Lang LaSalle's Quarterly Report on Form 10-Q for the
quarter ended March 31, 2001 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 only to the Jones Lang LaSalle second
quarter results discussion at 9 a.m. EDT on Aug 1 with investors
and market analysts by dialing +1 719 457 2638.
. A web cast of the conference call is available at
http://www.videonewswire.com/event.asp?id=553.
. 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 EDT on Aug. 1, 2001, through 5:00 p.m. (EDT) on Aug. 8,
2001. The replay passcode is 596755.
3
<table>
JONES LANG LASALLE INCORPORATED
Consolidated Statements of Earnings
For the Three and Six Months ended June 30, 2001 and 2000
(in thousands, except share data)
(Unaudited)
<caption>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
---------------------------- ----------------------------
2001 2000 (1)(2) 2001 2000 (1)(2)
---------- ----------- ---------- -----------
<s> <c> <c> <c> <c>
Revenue:
Fee based services . . . . . . . $ 196,202 213,873 389,950 396,903
Equity in earnings from uncon-
solidated ventures. . . . . . . 1,341 8,747 3,857 14,687
Other income. . . . . . . . . . . 1,038 698 1,883 1,315
---------- ---------- ---------- ----------
Total revenue . . . . . . . 198,581 223,318 395,690 412,905
Operating expenses:
Compensation and benefits . . . . 129,219 142,536 263,696 272,773
Operating, administrative and
other . . . . . . . . . . . . . 53,478 52,552 105,708 103,364
Depreciation and amortization . . 12,091 10,797 23,422 21,491
---------- ---------- ---------- ----------
Total operating expenses
before merger related
non-recurring charges . . 194,788 205,885 392,826 397,628
---------- ---------- ---------- ----------
Operating income
before merger related
non-recurring charges . . 3,793 17,433 2,864 15,277
Merger related non-recurring charges:
Stock compensation expense. . . . -- 18,865 -- 37,191
---------- ---------- ---------- ----------
Total operating expenses. . 194,788 224,750 392,826 434,819
---------- ---------- ---------- ----------
4
JONES LANG LASALLE INCORPORATED
Consolidated Statements of Earnings - Continued
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
---------------------------- ----------------------------
2001 2000 (1)(2) 2001 2000 (1)(2)
---------- ----------- ---------- -----------
Operating income (loss) . . 3,793 (1,432) 2,864 (21,914)
Interest expense. . . . . . . . . . 5,981 6,664 10,827 13,339
---------- ---------- ---------- ----------
Loss before provision
(benefit) for income taxes
and minority interest . . (2,188) (8,096) (7,963) (35,253)
Net provision (benefit) for
income taxes. . . . . . . . . . . (831) 4,281 (3,026) 73
Minority interests in earnings
(losses) of subsidiaries. . . . . 565 15 531 (12)
---------- ---------- ---------- ----------
Net loss before cumulative
effect of change in
accounting principle. . . $ (1,922) (12,392) (5,468) (35,314)
========== ========== ========== ==========
Cumulative effect of change in
accounting principle. . . . . . . $ -- -- -- (14,249)
---------- ---------- ---------- ----------
Net loss. . . . . . . . . . $ (1,922) (12,392) (5,468) (49,563)
========== ========== ========== ==========
5
JONES LANG LASALLE INCORPORATED
Consolidated Statements of Earnings - Continued
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
---------------------------- ----------------------------
2001 2000 (1)(2) 2001 2000 (1)(2)
---------- ----------- ---------- -----------
Basic loss per common share
before cumulative effect of
change in accounting principle. . $ (0.06) (0.50) (0.18) (1.44)
Cumulative effect of change in
accounting principle. . . . . . . -- -- -- (0.58)
---------- ---------- ---------- ----------
Basic loss per common share . . . . $ (0.06) (0.50) (0.18) (2.02)
========== ========== ========== ==========
Basic weighted average shares
outstanding . . . . . . . . . . . 29,775,259 24,559,305 29,946,909 24,472,122
========== ========== ========== ==========
Diluted loss per common share
before cumulative effect of
change in accounting principle. . $ (0.06) (0.50) (0.18) (1.44)
Cumulative effect of change in
accounting principle. . . . . . . -- -- -- (0.58)
---------- ---------- ---------- ----------
Diluted loss per common share . . . $ (0.06) (0.50) (0.18) (2.02)
========== ========== ========== ==========
Diluted weighted average shares
outstanding . . . . . . . . . . . 29,775,259 24,559,305 29,946,909 24,472,122
========== ========== ========== ==========
<fn>
Please reference attached financial statement notes.
6
</table>
<table>
JONES LANG LASALLE INCORPORATED
Actual and Adjusted Actual Consolidated Statements of Earnings
For the Three and Six Months ended June 30, 2001 and 2000
(in thousands, except share data)
(Unaudited)
<caption>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
---------------------------- ----------------------------
2000 2000
Adjusted Adjusted
2001 Actual 2001 Actual
Actual (1)(2)(3) Actual (1)(2)(3)
---------- ---------- ---------- ----------
<s> <c> <c> <c> <c>
Revenue:
Fee based services. . . . . . . . $ 196,202 213,873 389,950 396,903
Equity in earnings from
unconsolidated ventures . . . . 1,341 8,747 3,857 14,687
Other income. . . . . . . . . . . 1,038 698 1,883 1,315
---------- ---------- ---------- ----------
Total revenue . . . . . . . 198,581 223,318 395,690 412,905
Operating expenses:
Compensation and benefits . . . . 129,219 142,536 263,696 272,773
Operating, administrative and
other . . . . . . . . . . . . . 53,478 52,552 105,708 103,364
Depreciation and amortization . . 12,091 10,797 23,422 21,491
---------- ---------- ---------- ----------
Total operating expenses
excluding merger related
non-recurring charges . . 194,788 205,885 392,826 397,628
---------- ---------- ---------- ----------
Adjusted operating income
excluding merger related
non-recurring charges . . 3,793 17,433 2,864 15,277
Interest expense. . . . . . . . . . 5,981 6,664 10,827 13,339
---------- ---------- ---------- ----------
Adjusted income (loss)
before provision (benefit)
for income taxes. . . . . (2,188) 10,769 (7,963) 1,938
7
JONES LANG LASALLE INCORPORATED
Actual and Adjusted Actual Consolidated Statements of Earnings - Continued
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
---------------------------- ----------------------------
2000 2000
Adjusted Adjusted
2001 Actual 2001 Actual
Actual (1)(2)(3) Actual (1)(2)(3)
---------- ---------- ---------- ----------
Net provision (benefit) for
income taxes. . . . . . . . . . . (831) 4,086 (3,026) 741
Minority interests in earnings
(losses) of subsidiaries. . . . . 565 15 531 (12)
---------- ---------- ---------- ----------
Adjusted net income (loss)
excluding merger related
non-recurring charges . . $ (1,922) 6,668 (5,468) 1,209
========== ========== ========== ==========
Adjusted income (loss) per
common share (5). . . . . . . . . $ (0.06) 0.22 (0.18) 0.04
========== ========== ========== ==========
Adjusted weighted average
shares outstanding (5). . . . . . 29,775,259 30,680,804 29,946,909 30,627,474
========== ========== ========== ==========
Adjusted EBITDA Calculation (4)
Adjusted operating income . . . . $ 3,793 17,433 2,864 15,277
Depreciation and amortization . . 12,091 10,797 23,422 21,491
Minority interests in EBITDA. . . (1,008) 49 (923) (19)
---------- ---------- ---------- ----------
Adjusted EBITDA . . . . . . $ 14,876 28,279 25,363 36,749
========== ========== ========== ==========
<fn>
Please reference attached financial statement notes.
8
</table>
<table>
JONES LANG LASALLE INCORPORATED
Segment Operating Results
For the Three and Six Months ended June 30, 2001 and 2000
(Unaudited)
<caption>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
---------------------------- ----------------------------
2000 2000
Adjusted Adjusted
2001 Actual 2001 Actual
Actual (1)(2)(3) Actual (1)(2)(3)
---------- ---------- ---------- ----------
<s> <c> <c> <c> <c>
OWNER AND OCCUPIER SERVICES -
AMERICAS
Revenue:
Implementation services . . . . $ 37,229 36,213 61,928 60,583
Management fees . . . . . . . . 35,913 30,728 70,930 59,957
Equity earnings (losses). . . . 335 294 335 (66)
Other services. . . . . . . . . 437 187 723 375
Intersegment revenue. . . . . . 550 (17) 710 378
---------- ---------- ---------- ----------
74,464 67,405 134,626 121,227
Operating expenses:
Compensation, operating and
administrative. . . . . . . . 66,016 58,041 131,258 118,272
Depreciation and amortization . 6,300 5,485 11,990 10,867
---------- ---------- ---------- ----------
Operating income (loss) . . $ 2,148 3,879 (8,622) (7,912)
========== ========== ========== ==========
EUROPE
Revenue:
Implementation services . . . . $ 55,057 69,931 119,552 131,591
Management fees . . . . . . . . 22,872 21,169 45,259 41,367
Other services. . . . . . . . . 249 312 436 549
---------- ---------- ---------- ----------
78,178 91,412 165,247 173,507
Operating expenses:
Compensation, operating and
administrative. . . . . . . . 70,019 83,393 146,250 157,075
Depreciation and amortization . 3,128 2,854 6,185 5,620
---------- ---------- ---------- ----------
Operating income. . . . . . $ 5,031 5,165 12,812 10,812
========== ========== ========== ==========
9
JONES LANG LASALLE INCORPORATED
Segment Operating Results - Continued
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
---------------------------- ----------------------------
2000 2000
Adjusted Adjusted
2001 Actual 2001 Actual
Actual (1)(2)(3) Actual (1)(2)(3)
---------- ---------- ---------- ----------
ASIA PACIFIC
Revenue:
Implementation services . . . . $ 16,710 23,174 31,961 43,709
Management fees . . . . . . . . 11,261 10,358 23,350 20,494
Other services. . . . . . . . . 354 193 697 360
---------- ---------- ---------- ----------
28,325 33,725 56,008 64,563
Operating expenses:
Compensation, operating and
administrative. . . . . . . . 29,547 33,747 58,349 62,429
Depreciation and amortization . 1,681 1,477 3,275 3,038
---------- ---------- ---------- ----------
Operating loss. . . . . . . $ (2,903) (1,499) (5,616) (904)
========== ========== ========== ==========
INVESTMENT MANAGEMENT -
Revenue:
Implementation services . . . . $ 1,044 1,029 1,839 3,998
Advisory fees . . . . . . . . . 16,095 21,271 35,079 35,204
Equity earnings . . . . . . . . 1,006 8,453 3,522 14,753
Other services. . . . . . . . . 19 6 79 31
---------- ---------- ---------- ----------
18,164 30,759 40,519 53,986
Operating expenses:
Compensation, operating and
administrative. . . . . . . . 17,665 19,890 34,257 38,739
Depreciation and amortization . 982 981 1,972 1,966
---------- ---------- ---------- ----------
Operating income (loss) . . $ (483) 9,888 4,290 13,281
========== ========== ========== ==========
10
JONES LANG LASALLE INCORPORATED
Segment Operating Results - Continued
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
---------------------------- ----------------------------
2000 2000
Adjusted Adjusted
2001 Actual 2001 Actual
Actual (1)(2)(3) Actual (1)(2)(3)
---------- ---------- ---------- ----------
Total segment revenue . . . . . . . $ 199,131 223,301 396,400 413,283
Intersegment revenue eliminations . (550) 17 (710) (378)
---------- ---------- ---------- ----------
Total revenue . . . . . . . $ 198,581 223,318 395,690 412,905
========== ========== ========== ==========
Total segment operating expenses. . $ 195,338 205,868 393,536 398,006
Intersegment operating expense
eliminations. . . . . . . . . . . (550) 17 (710) (378)
---------- ---------- ---------- ----------
Total operating expenses
excluding merger related
non-recurring charges . . $ 194,788 205,885 392,826 397,628
========== ========== ========== ==========
Operating income excluding
merger related non-recurring
charges . . . . . . . . . $ 3,793 17,433 2,864 15,277
========== ========== ========== ==========
<fn>
Please reference attached financial statement notes.
11
</table>
<table>
JONES LANG LASALLE INCORPORATED
Consolidated Balance Sheets
June 30, 2001, December 31, 2000 and June 30, 2000
(in thousands)
(Unaudited)
<caption>
June 30, December 31, June 30,
2001 2000 2000 (1)
---------- ----------- ----------
<s> <c> <c> <c>
ASSETS
Current assets:
Cash and cash equivalents . . . . . . . . . . . . . $ 10,075 18,843 13,167
Trade receivables, net of allowances. . . . . . . . 185,751 244,201 212,356
Notes receivable and advances to real estate
ventures. . . . . . . . . . . . . . . . . . . . . 2,557 4,286 3,591
Other receivables . . . . . . . . . . . . . . . . . 10,414 6,655 2,775
Income tax refund receivable. . . . . . . . . . . . -- 976 14,500
Prepaid expenses. . . . . . . . . . . . . . . . . . 11,031 10,811 9,894
Deferred tax assets . . . . . . . . . . . . . . . . 24,216 23,959 26,048
Other assets. . . . . . . . . . . . . . . . . . . . 22,292 11,330 13,505
---------- ---------- ----------
Total current assets. . . . . . . . . . . . . 266,336 321,061 295,836
Property and equipment, at cost, less accumulated
depreciation. . . . . . . . . . . . . . . . . . . . 89,493 90,306 79,637
Intangibles resulting from business acquisitions
and JLW merger, net of accumulated amortization . . 335,738 350,129 359,715
Investments in real estate ventures . . . . . . . . . 53,229 74,565 69,126
Other investments . . . . . . . . . . . . . . . . . . 13,864 12,884 1,250
Long-term receivables, net. . . . . . . . . . . . . . 20,928 23,136 23,311
Prepaid pension asset . . . . . . . . . . . . . . . . 15,598 18,730 20,914
Deferred tax assets . . . . . . . . . . . . . . . . . 9,068 12,317 5,566
Debt issuance costs . . . . . . . . . . . . . . . . . 4,184 4,848 1,758
Other assets, net . . . . . . . . . . . . . . . . . . 5,991 6,069 5,410
---------- ---------- ----------
$ 814,429 914,045 862,523
========== ========== ==========
12
JONES LANG LASALLE INCORPORATED
Consolidated Balance Sheets - Continued
June 30, December 31, June 30,
2001 2000 2000 (1)
---------- ----------- ----------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities. . . . . . $ 84,701 111,738 85,944
Accrued compensation. . . . . . . . . . . . . . . . 56,066 170,323 87,165
Short-term borrowings . . . . . . . . . . . . . . . 8,954 8,836 190,612
Deferred tax liabilities. . . . . . . . . . . . . . 125 226 36
Other liabilities . . . . . . . . . . . . . . . . . 21,168 16,583 19,429
---------- ---------- ----------
Total current liabilities . . . . . . . . . . 171,014 307,706 383,186
Long-term liabilities:
Credit facilities . . . . . . . . . . . . . . . . . 155,621 85,565 154,483
Notes . . . . . . . . . . . . . . . . . . . . . . . 140,085 155,546 --
Deferred tax liabilities. . . . . . . . . . . . . . 5,670 9,547 6,808
Other . . . . . . . . . . . . . . . . . . . . . . . 22,169 22,776 14,009
---------- ---------- ----------
Total liabilities . . . . . . . . . . . . . . 494,559 581,140 558,486
Commitments and contingencies
Minority interest in consolidated subsidiaries. . . . 1,062 567 590
Stockholders' equity:
Common stock, $.01 par value per share,
100,000,000 shares authorized; 29,876,385,
30,700,150 and 30,859,772 shares issued and
outstanding as of June 30, 2001, December 31,
2000 and June 30, 2000, respectively. . . . . . . 299 307 309
Additional paid-in capital. . . . . . . . . . . . . 455,806 461,272 453,209
Unallocated ESOT shares . . . . . . . . . . . . . . -- -- (7)
Deferred stock compensation . . . . . . . . . . . . (3,527) (4,322) (40,395)
Retained deficit. . . . . . . . . . . . . . . . . . (112,578) (107,110) (99,613)
Stock held in trust . . . . . . . . . . . . . . . . (1,099) (397) --
Accumulated other comprehensive income. . . . . . . (20,093) (17,412) (10,056)
---------- ---------- ----------
Total stockholders' equity. . . . . . . . . . 318,808 332,338 303,447
---------- ---------- ----------
$ 814,429 914,045 862,523
========== ========== ==========
<fn>
Please reference attached financial statement notes.
13
</table>
<table>
JONES LANG LASALLE INCORPORATED
CURRENCY ANALYSIS OF REVENUES AND ADJUSTED OPERATING INCOME
(in millions)
(Unaudited)
<caption>
Pound US
Sterling Australian Dollar
(6) Euro Dollar (6) Other Total
-------- -------- ---------- -------- -------- --------
$ $ $ $ $ $
<s> <c> <c> <c> <c> <c> <c>
REVENUES (1)
2001
Q1, 2001 45.6 43.1 11.2 73.1 24.1 197.1
Q2, 2001 41.6 35.0 10.6 81.8 29.6 198.6
2000
Q1, 2000 48.0 39.2 12.4 63.0 27.0 189.6
Q2, 2000 50.2 47.3 15.9 82.7 27.2 223.3
ADJUSTED OPERATING INCOME (1)(3)(6)
2001
Q1, 2001 -0.4 8.7 -0.5 -5.2 -3.5 -0.9
Q2, 2001 1.8 3.7 -0.8 1.9 -2.8 3.8
2000
Q1, 2000 4.4 7.9 -0.2 -14.3 0.0 -2.2
Q2, 2000 2.0 10.4 0.4 7.4 -2.8 17.4
<fn>
Please reference attached financial statement notes.
14
</table>
JONES LANG LASALLE INCORPORATED
SFAS 142 Goodwill Schedule
(in millions)
(Unaudited)
Excess
Specific Purchase
Intangibles Price (7)
----------- ---------
June 30, 2001 balance,
net of accumulated
amortization 24.8 310.9
Amortization
Remaining in 2001 2.6 5.1
2002 4.8 10.0
2003 4.8 9.8
2004 4.8 9.7
2005 4.6 8.7
2006 3.2 8.5
15
JONES LANG LASALLE INCORPORATED
Financial Statement Notes
(1) The income statements for the three and six months ended June 30,
2000, as well as the balance sheet as of June 30, 2000, have been
restated to include the impact of adopting SAB 101 as of January 1,
2000.
(2) Certain prior year amounts have been reclassified to conform with
the current presentation.
(3) Adjusted results exclude the effect of merger related non-recurring
stock compensation expense incurred associated with the issuance of
shares to former employees of Jones Lang Wootton. This analysis is
not intended to be a presentation in accordance with generally
accepted accounting principles.
(4) Adjusted EBITDA represents earnings before interest expense, income
taxes, depreciation and amortization, and excludes Minority Interests
in EBITDA. For the three and six months ended June 30, 2000,
Adjusted EBITDA also excludes merger related non-recurring charges.
There will be no merger related non-recurring charges in 2001.
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.
(5) 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 and indemnity provisions which are not considered in the
calculation of weighted average basic or diluted shares outstanding
under generally accepted accounting principles. As of December 31,
2000, all forfeiture, vesting and indemnity provisions have been
removed, therefore for 2001, these shares are included in the
weighted average shares outstanding under generally accepted
accounting principles.
(6) 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 adjusted operating income. The
adjusted 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.
(7) Pursuant to SFAS 142, Jones Lang LaSalle will stop amortizing Excess
Purchase Price as of January 1, 2002. Amounts reported in SFAS 142
Goodwill Schedule are translated into U.S. dollars using June 30,
2001 exchange rates.
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