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'S THIRD QUARTER ADJUSTED EARNINGS
EXCEED EXPECTATIONS
CHICAGO AND LONDON, NOVEMBER 5, 2001 - Jones Lang LaSalle Incorporated
(NYSE: JLL), the leading global real estate services and investment
management firm, today reported third quarter adjusted net income of $12.6
million, or $ 0.41 per share, exceeding the First Call consensus estimate
by $0.03 per share. Revenues for the third quarter were $216.6 million,
off only three percent from the previous year's period. The firm's
adjusted results exclude $24.5 million of non-recurring charges incurred
during the quarter. Comparable results for the third quarter of 2000
included adjusted net income of $12.2 million, or $0.40 per share, which
excluded $18.2 million of non-cash compensation expense associated with the
Jones Lang Wootton merger.
- ----------------------------------------------------------------------
. Exceeds third quarter First Call consensus estimate by $0.03
per share
. Exceeds adjusted earnings per share from prior year period
. Plans to reduce annualized costs by at least $45 million
- ----------------------------------------------------------------------
Including the effect of these non-operational charges, third quarter
results for 2001 reported under Generally Accepted Accounting Principles
(GAAP) were a loss of $6.2 million, or $0.21 per share. On a GAAP basis,
results for the third quarter of 2000 were a loss of $5.7 million, or $0.22
per share.
In recognition of the difficult economic environment, the company is
implementing a program that will even more closely align its business
operations with anticipated client needs in 2002. Jones Lang LaSalle
expects the program, which will be finalized by year-end, to produce
annualized savings of at least $45 million, and the company will take
additional restructuring charges of at least $40 million in the fourth
quarter to cover associated severance and other costs. Certain of the non-
recurring charges in the third quarter reflect the commencement of this
program, particularly related to restructuring the Asia Pacific business
and exiting two small non-strategic businesses in the United States. Other
elements of the charges include the writedown of E-commerce investments and
costs associated with the bankruptcy of two insurance providers.
-- more --
JONES LANG LASALLE REPORTS THIRD QUARTER RESULTS - ADD ONE
"In light of the recent profound shock to an already slowing global
economy, we are pleased that our third quarter earnings were slightly above
the mid-point of our projected range," said Stuart L. Scott, Chairman and
Chief Executive Officer of Jones Lang LaSalle. "Due to uncertainty
regarding the timing of a recovery from the current global economic
environment, we have instituted an extensive review of our operating plans
for the remainder of 2001 and for next year. We have a goal of reducing
costs on an annualized basis by at least $45 million while continuing to
remain focused on constantly improving client service levels."
Mr. Scott continued: "With regard to our full year results, the revenue
planned in the fourth quarter, coupled with aggressive expense controls,
are sufficient to enable us to achieve our adjusted EPS target of $1.31,
excluding one time charges. However, there is some risk to our ability to
execute all this work in the quarter given the slowness we are experiencing
in closing transactions in the current environment."
BUSINESS SEGMENT PERFORMANCE HIGHLIGHTS
Chris Peacock, President and Chief Operating Officer of Jones Lang LaSalle,
said: "With the weakness of the global economy, we have actively managed
costs in the face of the slowdown in revenues. More importantly, in these
difficult times, our clients around the world continue to turn to us for
assistance in managing their real estate expenses. In fact, we have had a
record year in forging new alliances and key client relationships, which
demonstrates the validity of our global platform and the expertise of our
talented people."
The following summary of business segment results compares the third
quarter of 2001 to the same period of the previous year. The segment
results, which exclude the non-recurring charges of $24.5 million discussed
above, 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.
OWNER AND OCCUPIER SERVICES
. The Americas region reported a decline in revenues of $5.3 million,
to $74.9 million, driven by lower activity in all business lines
except Project & Development Management, where revenues were up
almost 10 percent. Operating expenses for the period were $5.5
million lower than the same period in the prior year, reflecting
a combination of cost containment initiatives and the timing of
the recognition of incentive compensation. As a result, operating
income for the third quarter was $8.4 million, $0.3 million higher
than the third quarter of 2000.
. In Europe, third quarter revenues were $5.4 million lower than the
same period of 2000. The decline reflects reduced activity in many
parts of the region, particularly the UK and France, partially
offset by growth in Germany, Holland and Sweden. Headcount increases
and the timing of incentive compensation recognition produced
operating costs that were $3.2 million higher than the same period in
the previous year. As a result, operating income for the third
quarter was $4.0 million, down $8.5 million on the prior year.
. Revenue for Asia Pacific in the third quarter of 2001 was $32.5
million, essentially flat with the same period in 2000. The region's
operating results improved by $2.5 million compared to the prior year
period due to a combination of cost reduction benefits and the timing
of incentive compensation recognition.
-- more --
JONES LANG LASALLE REPORTS THIRD QUARTER RESULTS - ADD TWO
INVESTMENT MANAGEMENT
. LaSalle Investment Management reported third quarter revenues of
$33.4 million, 10 percent higher than the same period in the previous
year, as the segment benefitted from a significant incentive fee
related to the sale of a hotel investment. The comparable quarter in
2000 also included two significant incentive fees. Operating income
of $12.9 million increased 39 percent over the prior year period.
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 Reports on Form 10-Q for the
quarters ended March 31, 2001 and June 30, 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 third
quarter results discussion at 9 a.m. EST on Nov. 6 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=1879.
.. 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 Nov. 6, 2001, through midnight EST on Nov. 16,
2001. The replay passcode is 733514.
<table>
JONES LANG LASALLE INCORPORATED
ADJUSTED ACTUAL CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
(in thousands, except share data)
(Unaudited)
<caption>
Three Months Ended Nine Months Ended
------------------------------ -----------------------------
September 30, September 30,
September 30, 2000 September 30, 2000
2001 Adjusted 2001 Adjusted
Adjusted Actual Adjusted Actual
Actual (1) (1)(2)(3) Actual (1) (1)(2)(3)
-------------- ------------ ------------ ------------
<s> <c> <c> <c> <c>
Revenue:
Fee based services. . . . . . . . . . . . $ 212,516 220,945 602,466 617,848
Equity in earnings from
unconsolidated ventures . . . . . . . . 2,820 1,116 6,677 15,803
Other income. . . . . . . . . . . . . . . 1,262 2,029 3,145 3,344
---------- ---------- ---------- ----------
Total revenue . . . . . . . . . . . . . 216,598 224,090 612,288 636,995
Operating expenses:
Compensation and benefits . . . . . . . . 130,923 134,349 393,311 407,122
Operating, administrative and other . . . 47,750 51,378 151,116 154,742
Depreciation and amortization . . . . . . 12,044 10,298 35,466 31,789
---------- ---------- ---------- ----------
Total operating expenses excluding
non-recurring and restructuring
charges . . . . . . . . . . . . . . . 190,717 196,025 579,893 593,653
---------- ---------- ---------- ----------
Adjusted operating income excluding
non-recurring and restructuring
charges . . . . . . . . . . . . . . . 25,881 28,065 32,395 43,342
Interest expense, net of interest income. . 4,957 8,226 15,784 21,565
---------- ---------- ---------- ----------
Adjusted income before provision
for income taxes. . . . . . . . . . . 20,924 19,839 16,611 21,777
Net provision for income taxes. . . . . . . 8,615 7,535 6,976 8,276
Minority interests in earnings (losses)
of subsidiaries . . . . . . . . . . . . . (318) 72 213 60
---------- ---------- ---------- ----------
Adjusted net income excluding
non-recurring and restructuring
charges . . . . . . . . . . . . . . . $ 12,627 12,232 9,422 13,441
========== ========== ========== ==========
JONES LANG LASALLE INCORPORATED
ADJUSTED ACTUAL CONSOLIDATED STATEMENTS OF EARNINGS - CONTINUED
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
(in thousands, except share data)
(Unaudited)
THREE MONTHS ENDED NINE MONTHS ENDED
------------------------------ -----------------------------
September 30, September 30,
September 30, 2000 September 30, 2000
2001 Adjusted 2001 Adjusted
Adjusted Actual Adjusted Actual
Actual (1) (1)(2)(3) Actual (1) (1)(2)(3)
-------------- ------------ ------------ ------------
Adjusted income per common share (4). . . . $ 0.41 0.40 0.30 0.44
========== ========== ========== ==========
Adjusted weighted average shares
outstanding (4) . . . . . . . . . . . . . 31,005,514 30,755,066 30,929,379 30,679,303
========== ========== ========== ==========
Adjusted EBITDA Calculation (5)
Adjusted operating income . . . . . . . . $ 25,881 28,065 32,395 43,342
Depreciation and amortization . . . . . . 12,044 10,298 35,466 31,789
Minority interests in EBITDA. . . . . . . 346 (184) (577) (203)
---------- ---------- ---------- ----------
Adjusted EBITDA . . . . . . . . . . . . $ 38,271 38,179 67,284 74,928
========== ========== ========== ==========
<fn>
Please reference attached financial statement notes.
</table>
<table>
JONES LANG LASALLE INCORPORATED
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
(in thousands, except share data)
(Unaudited)
<caption>
Three Months Ended Nine Months Ended
------------------------------ -----------------------------
September 30, September 30, September 30, September 30,
2001 2000 (2)(3) 2001 2000 (2)(3)
------------ ------------ ------------ ------------
<s> <c> <c> <c> <c>
Revenue:
Fee based services. . . . . . . . . . . . $ 212,516 220,945 602,466 617,848
Equity in earnings from unconsolidated
ventures . . . . . . . . . . . . . . . 2,820 1,116 6,677 15,803
Other income. . . . . . . . . . . . . . . 1,262 2,029 3,145 3,344
---------- ---------- ---------- ----------
Total revenue . . . . . . . . . . . . . 216,598 224,090 612,288 636,995
Operating expenses:
Compensation and benefits . . . . . . . . 130,923 134,349 393,311 407,122
Operating, administrative and other . . . 47,750 51,378 151,116 154,742
Depreciation and amortization . . . . . . 12,044 10,298 35,466 31,789
---------- ---------- ---------- ----------
Total operating expenses before
non-recurring and restructuring
charges . . . . . . . . . . . . . . . 190,717 196,025 579,893 593,653
---------- ---------- ---------- ----------
Operating income before non-recurring
and restructuring charges . . . . . . . 25,881 28,065 32,395 43,342
Non-operational non-recurring charges . . 21,051 18,191 23,162 55,382
Restructuring charges . . . . . . . . . . 3,439 -- 4,978 --
---------- ---------- ---------- ----------
Total operating expenses. . . . . . . . 215,207 214,216 608,033 649,035
---------- ---------- ---------- ----------
Operating income (loss) . . . . . . . . 1,391 9,874 4,255 (12,040)
Interest expense, net of interest income. . 4,957 8,226 15,784 21,565
---------- ---------- ---------- ----------
Income (loss) before provision for
income taxes and minority interest. . (3,566) 1,648 (11,529) (33,605)
JONES LANG LASALLE INCORPORATED
CONSOLIDATED STATEMENTS OF EARNINGS - CONTINUED
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
(in thousands, except share data)
(Unaudited)
Three Months Ended Nine Months Ended
------------------------------ -----------------------------
September 30, September 30, September 30, September 30,
2001 2000 (2)(3) 2001 2000 (2)(3)
------------ ------------ ------------ ------------
Net provision for income taxes. . . . . . . 2,933 7,232 800 7,305
Minority interests in earnings (losses)
of subsidiaries . . . . . . . . . . . . . (318) 72 213 60
---------- ---------- ---------- ----------
Net loss before cumulative effect
of change in accounting principle . . (6,181) (5,656) (12,542) (40,970)
Cumulative effect of change in
accounting principle. . . . . . . . . . . -- -- -- (14,249)
---------- ---------- ---------- ----------
Net loss. . . . . . . . . . . . . . . . $ (6,181) (5,656) (12,542) (55,219)
========== ========== ========== ==========
Basic loss per common share before
cumulative effect of change in
accounting principle. . . . . . . . . . . $ (0.21) (0.22) (0.42) (1.66)
Cumulative effect of change in
accounting principle. . . . . . . . . . . -- -- -- (0.58)
---------- ---------- ---------- ----------
Basic loss per common share . . . . . . . . $ (0.21) (0.22) (0.42) (2.24)
========== ========== ========== ==========
Basic weighted average shares outstanding . 30,077,867 25,168,964 29,991,041 24,701,106
========== ========== ========== ==========
Diluted loss per common share before
cumulative effect of change in
accounting principle. . . . . . . . . . . $ (0.21) (0.22) (0.42) (1.66)
Cumulative effect of change in
accounting principle. . . . . . . . . . . -- -- -- (0.58)
---------- ---------- ---------- ----------
Diluted loss per common share . . . . . . . $ (0.21) (0.22) (0.42) (2.24)
========== ========== ========== ==========
Diluted weighted average shares outstanding 30,077,867 25,168,964 29,991,041 24,701,106
========== ========== ========== ==========
<fn>
Please reference attached financial statement notes.
</table>
<table>
JONES LANG LASALLE INCORPORATED
SEGMENT OPERATING RESULTS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
(in thousands)
(Unaudited)
<caption>
Three Months Ended Nine Months Ended
------------------------------ -----------------------------
September 30, September 30,
September 30, 2000 September 30, 2000
2001 Adjusted 2001 Adjusted
Adjusted Actual Adjusted Actual
Actual (1) (1)(2)(3) Actual (1) (1)(2)(3)
-------------- ------------ ------------ ------------
<s> <c> <c> <c> <c>
OWNER & OCCUPIER SERVICES -
AMERICAS
Revenue:
Implementation services . . . . . . . . $ 34,677 42,963 96,605 103,546
Management services . . . . . . . . . . 39,959 37,001 110,889 96,958
Equity earnings (losses) . . . . . . . (249) (444) 86 (510)
Other services . . . . . . . . . . . . 315 224 1,038 599
Intersegment revenue . . . . . . . . . 189 412 899 790
---------- ---------- ---------- ----------
74,891 80,156 209,517 201,383
Operating expenses:
Compensation, operating and
administrative . . . . . . . . . . . 60,385 67,020 188,631 185,292
Depreciation and amortization . . . . . 6,104 4,991 18,094 15,858
---------- ---------- ---------- ----------
Operating income (6) . . . . . . . . $ 8,402 8,145 2,792 233
========== ========== ========== ==========
EUROPE
Revenue:
Implementation services . . . . . . . . $ 53,782 61,768 173,334 193,359
Management services . . . . . . . . . . 21,567 18,770 66,826 60,137
Other services . . . . . . . . . . . . 579 731 1,015 1,280
---------- ---------- ---------- ----------
75,928 81,269 241,175 254,776
Operating expenses:
Compensation, operating and
administrative . . . . . . . . . . . 68,771 65,853 214,765 222,928
Depreciation and amortization . . . . . 3,153 2,882 9,338 8,502
---------- ---------- ---------- ----------
Operating income (6). . . . . . . . . $ 4,004 12,534 17,072 23,346
========== ========== ========== ==========
JONES LANG LASALLE INCORPORATED
SEGMENT OPERATING RESULTS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000 - CONTINUED
(in thousands)
(Unaudited)
Three Months Ended Nine Months Ended
------------------------------ -----------------------------
September 30, September 30,
September 30, 2000 September 30, 2000
2001 Adjusted 2001 Adjusted
Adjusted Actual Adjusted Actual
Actual (1) (1)(2)(3) Actual (1) (1)(2)(3)
-------------- ------------ ------------ ------------
ASIA PACIFIC
Revenue:
Implementation services . . . . . . . . $ 21,356 19,525 53,317 63,234
Management services . . . . . . . . . . 10,867 12,011 34,217 32,505
Other services. . . . . . . . . . . . . 316 1,040 1,013 1,400
---------- ---------- ---------- ----------
32,539 32,576 88,547 97,139
Operating expenses:
Compensation, operating and
administrative . . . . . . . . . . . 30,141 32,918 88,108 95,347
Depreciation and amortization . . . . . 1,824 1,539 5,099 4,577
---------- ---------- ---------- ----------
Operating income (loss) (6) . . . . . $ 574 (1,881) (4,660) (2,785)
========== ========== ========== ==========
INVESTMENT MANAGEMENT -
Revenue:
Implementation services . . . . . . . . $ 316 1,317 2,155 5,315
Advisory fees . . . . . . . . . . . . . 29,993 27,598 65,072 62,802
Equity earnings . . . . . . . . . . . . 3,069 1,560 6,591 16,313
Other services . . . . . . . . . . . . 51 26 130 57
---------- ---------- ---------- ----------
33,429 30,501 73,948 84,487
Operating expenses:
Compensation, operating and
administrative. . . . . . . . . . . . 19,565 20,348 53,822 59,087
Depreciation and amortization . . . . . 963 886 2,935 2,852
---------- ---------- ---------- ----------
Operating income (6). . . . . . . . . $ 12,901 9,267 17,191 22,548
========== ========== ========== ==========
JONES LANG LASALLE INCORPORATED
SEGMENT OPERATING RESULTS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000 - CONTINUED
(in thousands)
(Unaudited)
Three Months Ended Nine Months Ended
------------------------------ -----------------------------
September 30, September 30,
September 30, 2000 September 30, 2000
2001 Adjusted 2001 Adjusted
Adjusted Actual Adjusted Actual
Actual (1) (1)(2)(3) Actual (1) (1)(2)(3)
-------------- ------------ ------------ ------------
Total segment revenue. . . . . . . . . . . $ 216,787 224,502 613,187 637,785
Intersegment revenue eliminations. . . . . (189) (412) (899) (790)
---------- ---------- ---------- ----------
Total revenue . . . . . . . . . . . . $ 216,598 224,090 612,288 636,995
========== ========== ========== ==========
Total segment operating expenses . . . . . $ 190,906 196,437 580,792 594,443
Intersegment operating expense eliminations (189) (412) (899) (790)
---------- ---------- ---------- ----------
Total operating expenses before
non-recurring and restructuring
charges . . . . . . . . . . . . . . $ 190,717 196,025 579,893 593,653
========== ========== ========== ==========
Operating income before non-recurring
and restructuring charges . . . . . $ 25,881 28,065 32,395 43,342
========== ========== ========== ==========
<fn>
Please reference attached financial statement notes.
</table>
<table>
JONES LANG LASALLE INCORPORATED
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2001, DECEMBER 31, 2000 AND SEPTEMBER 30, 2000
(in thousands)
(Unaudited)
<caption>
September 30, December 31, September 30,
2001 2000 (3) 2000 (2)(3)
------------- ------------ -------------
<s> <c> <c> <c>
ASSETS
- ------
Current assets:
Cash and cash equivalents . . . . . . . . . $ 10,871 18,843 17,467
Trade receivables, net of allowances. . . . 195,959 244,201 200,831
Notes receivable and advances to
real estate ventures. . . . . . . . . . . 3,213 4,286 3,466
Other receivables . . . . . . . . . . . . . 8,624 6,655 4,397
Prepaid expenses. . . . . . . . . . . . . . 11,821 10,811 10,857
Deferred tax assets . . . . . . . . . . . . 24,445 23,959 24,245
Other assets. . . . . . . . . . . . . . . . 22,564 12,306 10,433
---------- ---------- ----------
Total current assets. . . . . . . . . . 277,497 321,061 271,696
Property and equipment, at cost,
less accumulated depreciation . . . . . . . 93,096 90,306 82,730
Intangibles resulting from business
acquisitions and JLW merger, net of
accumulated amortization. . . . . . . . . . 333,468 350,129 351,638
Investments in real estate ventures . . . . . 49,058 74,565 71,412
Other investments . . . . . . . . . . . . . . -- 12,884 12,410
Long-term receivables, net. . . . . . . . . . 21,296 23,136 23,360
Prepaid pension asset . . . . . . . . . . . . 15,338 18,730 19,239
Deferred tax assets . . . . . . . . . . . . . 9,327 12,317 5,222
Debt issuance costs . . . . . . . . . . . . . 5,827 4,848 5,235
Other assets, net . . . . . . . . . . . . . . 5,575 6,069 6,851
---------- ---------- ----------
$ 810,482 914,045 849,793
========== ========== ==========
JONES LANG LASALLE INCORPORATED
CONSOLIDATED BALANCE SHEETS - CONTINUED
SEPTEMBER 30, 2001, DECEMBER 31, 2000 AND SEPTEMBER 30, 2000
(in thousands)
(Unaudited)
September 30, December 31, September 30,
2001 2000 (3) 2000 (2)(3)
------------- ------------ -------------
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
Current liabilities:
Accounts payable and accrued liabilities. . $ 95,616 111,738 82,639
Accrued compensation . . . . . . . . . . . 78,297 170,323 109,131
Short-term borrowings . . . . . . . . . . . 10,193 8,836 13,293
Deferred tax liabilities. . . . . . . . . . 198 226 36
Other liabilities . . . . . . . . . . . . . 21,154 16,583 18,499
---------- ---------- ----------
Total current liabilities . . . . . . . . 205,458 307,706 223,598
Long-term liabilities:
Credit facilities . . . . . . . . . . . . . 114,709 85,565 146,493
Notes . . . . . . . . . . . . . . . . . . . 150,234 155,546 146,378
Deferred tax liabilities. . . . . . . . . . 5,890 9,547 6,629
Other . . . . . . . . . . . . . . . . . . . 19,948 22,776 14,141
---------- ---------- ----------
Total liabilities . . . . . . . . . . . . 496,239 581,140 537,239
Commitments and contingencies
Minority interest in consolidated subsidiaries 768 567 640
Stockholders' equity:
Common stock, $.01 par value per share,
100,000,000 shares authorized;
30,093,055, 30,700,150 and 30,861,683
shares issued and outstanding as of
September 30, 2001, December 31, 2000
and September 30, 2000, respectively. . . 301 307 309
Additional paid-in capital. . . . . . . . . 458,058 461,272 452,648
Unallocated ESOT shares . . . . . . . . . . -- -- (7)
Deferred stock compensation . . . . . . . . (3,083) (4,322) (21,574)
Retained deficit. . . . . . . . . . . . . . (119,652) (107,110) (105,269)
Stock held in trust . . . . . . . . . . . . (1,658) (397) -
Accumulated other comprehensive income. . . (20,491) (17,412) (14,193)
---------- ---------- ----------
Total stockholders' equity. . . . . . . . 313,475 332,338 311,914
---------- ---------- ----------
$ 810,482 914,045 849,793
========== ========== ==========
<fn>
Please reference attached financial statement notes.
</table>
<table>
JONES LANG LASALLE INCORPORATED
CURRENCY ANALYSIS OF REVENUES AND ADJUSTED OPERATING INCOME
(in millions)
(Unaudited)
Pound Australian US
Sterling (7) Euro Dollar Dollar (7) Other TOTAL
------------ ------ ---------- ---------- ------ -----
$ $ $ $ $ $
<s> <c> <c> <c> <c> <c>
REVENUES (2)
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
Q3, 2001. . . . . 38.0 39.1 12.5 97.4 29.6 216.6
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
Q3, 2000. . . . . 42.7 44.7 13.6 97.6 25.5 224.1
ADJUSTED OPERATING
INCOME (1)(2)(7)
2001
Q1, 2001. . . . . -0.4 8.7 -0.5 -4.2 -3.5 0.1
Q2, 2001. . . . . 1.8 3.9 -0.8 3.9 -2.4 6.4
Q3, 2001. . . . . -2.3 9.0 -0.7 23.4 -3.5 25.9
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
Q3, 2000. . . . . 1.1 14.1 -1.4 14.3 0.0 28.1
<fn>
Please reference attached financial statement notes.
</table>
JONES LANG LASALLE INCORPORATED
Financial Statement Notes
(1) Adjusted results for the three and nine months ended September 30,
2001 exclude non-recurring and restructuring charges. Non-recurring
charges include the write-down of investments in e-commerce, reserves
against potential liabilities associated with the bankruptcy of two
insurance providers and the asset impairment costs associated with
exiting two non-strategic businesses in the Americas. Restructuring
charges include severance and professional fees associated with the
realignment of our Asia Pacific business and exiting two
non-strategic businesses in the Americas. Adjusted results for the
three and nine months ended September 30, 2000 exclude merger related
non-recurring charges representing non-cash compensation expense
resulting from the issuance of shares to former employees of Jones
Lang Wootton. There will be no merger related non-recurring charges
in 2001. This analysis is not intended to be a presentation in
accordance with generally accepted accounting principles.
(2) The income statements for the three and nine months ended
September 30, 2000, as well as the balance sheet as of September 30,
2000, have been restated to include the impact of adopting SAB 101 as
of January 1, 2000.
(3) Certain prior year amounts have been reclassified to conform with the
current presentation.
(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 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.
(5) Adjusted EBITDA represents earnings before interest expense, income
taxes, depreciation and amortization, and excludes Minority Interests
in EBITDA. For the three and nine months ended September 30, 2001,
Adjusted EBITDA excludes non-recurring and restructuring charges.
For the three and nine months ended September 30, 2000, Adjusted
EBITDA excludes merger related non-recurring charges.
(6) For purposes of this analysis non-recurring and restructuring charges
have not been allocated to the segments.
(7) 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.