EXHIBIT 99.1
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JONES LANG LASALLE NEWS RELEASE
Contact: Lauralee E. Martin
Title: Chief Operating and Financial Officer
Phone: +1 312 228 2073
JONES LANG LASALLE REPORTS 15 PERCENT REVENUE GROWTH IN FIRST QUARTER 2008;
NET INCOME OF $2.8 MILLION, $0.09 PER SHARE
Firm Declares Semi-Annual Dividend
CHICAGO, APRIL 29, 2008 - Jones Lang LaSalle Incorporated (NYSE: JLL), the
leading integrated financial and professional services firm specializing in
real estate, today reported net income of $2.8 million, or $0.09 per
diluted share of common stock, for the quarter ended March 31, 2008,
compared with net income of $27.3 million, or $0.81 per share, for the
first quarter of 2007. Revenue for the first quarter of 2008 was $564
million, an increase of 15 percent in U.S. dollars and nine percent in
local currencies from the prior year. Operating income for the first
quarter of 2008 was $7.9 million compared with $36.5 million for the prior
year. Included in the firm's 2007 results was a significant Capital Markets
performance fee from a portfolio transaction completed in Germany.
All operating segments achieved revenue growth in the first quarter of 2008
compared with the same period in 2007. Revenue from LaSalle Investment
Management's Advisory fees and the Asia Pacific region each increased
approximately 35 percent over the prior year. The firm's Hotels and broader
Capital Markets businesses, which had been involved in large portfolio
transactions in previous quarters, were significantly impacted in the first
quarter of 2008 by liquidity conditions in credit markets. Offsetting this
impact, however, was solid revenue performance in the remaining business.
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First Quarter 2008 Highlights:
. Revenue increased 15 percent to $564 million with growth
in all business segments
. Revenue growth of 34 percent in LaSalle Investment
Management's Advisory fees
. Semi-annual dividend declared
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"While the credit environment slowed our Capital Markets transactions
worldwide, we continued to grow our revenue with solid performance across
the rest of our broad geographic and client-service platform. LaSalle
Investment Management also produced a healthy quarter," said Colin Dyer,
Chief Executive Officer of Jones Lang LaSalle. "We remain focused on
actively managing our cost base while we continue to deliver real value to
our clients and build strong market positions globally," Dyer added.
JONES LANG LASALLE REPORTS 15 PERCENT REVENUE GROWTH IN FIRST QUARTER 2008
- -- PAGE 2
Operating expenses of $556 million for the first quarter of 2008
represented an increase of 23 percent in U.S. dollars and 16 percent in
local currencies compared with the prior year's expenses of $454 million.
Operating expenses increased as a result of acquisition costs and global
platform improvements added throughout 2007. During the first quarter of
each year, the firm's results also are influenced by the seasonal nature of
the business, as greater proportions of annual revenue and profits are
realized in subsequent quarters. The firm is actively managing expenses,
while remaining focused on growth opportunities.
In addition to the 13 acquisitions closed in 2007, the firm completed an
additional seven in the first quarter of 2008. The recent acquisitions were
made in all regions and have expanded the firm's presence as well as
further diversified its product lines.
DECLARATION OF SEMI-ANNUAL DIVIDEND
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The Board of Directors declared a semi-annual dividend of $0.50 per share
of its common stock. The dividend payment will be made on June 13, 2008, to
holders of record at the close of business on May 15, 2008.
BUSINESS SEGMENT FIRST QUARTER PERFORMANCE HIGHLIGHTS
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INVESTOR AND OCCUPIER SERVICES
. In the AMERICAS region, revenue for the first quarter of 2008 was
$174 million, an increase of 17 percent over the same period last
year, despite a decrease of 54 percent in Capital Markets revenue and
fewer transactions completed in the Americas Hotels business. The
growth in revenue was driven mainly by Management services, which
increased 25 percent for the quarter compared with 2007. Transaction
services grew nine percent for the same period over last year as a
result of the firm's healthy market leasing activity.
Revenue from Account Management, including leasing revenue, increased
54 percent over the prior year, benefiting from new and expanded
relationships with corporate clients. The region's total leasing
revenue increased nearly 40 percent over 2007, driven by activity
from the investment hires and acquisitions that were completed in the
prior year. The growth in both of these businesses, as well as a
year-over-year increase of 65 percent in revenue from Latin America,
offset the decline in Capital Markets revenue.
Total operating expenses increased 22 percent for the first quarter
of 2008 compared with 2007. Contributing to the increase were the
impact of expenses relating to the addition of revenue generators in
key markets during 2007, as well as the impact of strategic
acquisitions.
. EMEA's revenue for the first quarter of 2008 was $183 million
compared with $177 million in the prior year. Management services
revenue grew 50 percent to $48.2 million for the quarter. Transaction
services revenue decreased seven percent to $132 million as a result
of reduced transaction volume in Capital Markets. Revenue from the
firm's Capital Markets decreased 29 percent in the first quarter of
2008 excluding the performance fee generated from the significant
portfolio transaction completed in Germany in 2007, while market
volumes as a whole in Europe were down 38 percent.
JONES LANG LASALLE REPORTS 15 PERCENT REVENUE GROWTH IN FIRST QUARTER 2008
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Despite the lower volume of Capital Markets transactions compared
with the prior year, demand for other services increased. Agency
Leasing momentum continued from the end of 2007, with revenue
increasing approximately 30 percent in the first quarter year over
year. Advisory Services revenue increased 38 percent for the same
period. While the slowdown in Capital Markets activity significantly
impacted Germany and the UK, Capital Markets activity increased in
the growth markets of Dubai and Finland, while the growth in the
mature markets of Holland and Belgium was driven by growth in market
share. Geographically, France, Dubai, Russia and Holland had healthy
growth in total revenue over 2007.
Operating expenses increased by 17 percent for the first quarter of
2008 compared with the prior year, primarily due to the impact of
acquisitions.
. Revenue for the ASIA PACIFIC region for the first quarter of 2008 was
$117 million, an increase of 36 percent over the prior year despite
several large Capital Markets transactions being delayed. Growth for
the quarter resulted from both Transaction services revenue, which
increased nearly 50 percent, and Management services revenue, which
increased 27 percent.
Australia, the largest market in the Asia Pacific region, benefited
from growth across all of its business lines, resulting in overall
revenue growth of nearly 50 percent over the prior year. The growth
markets of China, Japan and India had strong increases in revenue
over the prior year. Revenue in China and Japan increased 45 and 20
percent, respectively. India had strong revenue growth over the prior
year, benefiting both from economic growth and the acquisition the
firm completed in the third quarter of 2007.
Operating expenses for the region increased 40 percent over the prior
year. Operating expenses increased at a faster pace than revenue due
to the growing geographic platform, enhanced client service
capabilities and technology infrastructure added to serve the large
potential of the region.
LASALLE INVESTMENT MANAGEMENT
LASALLE INVESTMENT MANAGEMENT'S first-quarter revenue increased to
$87.4 million, up 11 percent over the prior year. The increase in
revenue was driven by the continued growth of the annuity-based
business, leading to a year-over-year increase in Advisory fees of 34
percent, with particularly strong results in Asia Pacific. This
growth in LaSalle Investment Management's annuity business was
principally due to a healthy increase in assets under management over
the prior year to $50 billion, together with Advisory fees generated
from recently committed capital. Supporting this growth, the firm's
co-investment capital at the end of the first quarter of 2008 grew to
$164 million, a 23 percent increase over the prior year.
Incentive fees vary significantly from period to period due to both
the performance of the underlying investments and the contractual
timing of the measurement periods for different clients. During the
first quarter of 2008, Incentive fees were $13.2 million compared
with $21.9 million in 2007.
LaSalle Investment Management raised approximately $600 million of
equity in the first quarter of 2008. Investments made on behalf of
clients in the first quarter of 2008 were $1.4 billion, slightly
above the amount invested in the first quarter of 2007.
JONES LANG LASALLE REPORTS 15 PERCENT REVENUE GROWTH IN FIRST QUARTER 2008
- -- PAGE 4
SUMMARY
The firm experienced revenue growth across all geographic segments in the
first quarter of 2008, the result of expanded market share, focused
strategic investments, and its globally diverse business platform and
service lines. LaSalle Investment Management's solid financial results were
a reflection of its outstanding track record and research-based approach
for delivering value for clients. In the face of uncertainty in the credit
markets, which is slowing Capital Markets activity around the world, the
firm is focused on driving performance across the balance of its diverse
platform.
Statements in this press release regarding, among other things, future
financial results and performance, achievements, plans and objectives,
dividend payments and share repurchases 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, 2007
and in other reports filed with the Securities and Exchange Commission.
There can be no assurance that future dividends will be declared since the
actual declaration of future dividends, and the establishment of record and
payment dates, remains subject to final determination by the Company's
Board of Directors. Statements speak only as of the date of this release.
Jones Lang LaSalle expressly disclaims any obligation or undertaking to
update or revise any forward-looking statements contained herein to reflect
any change in Jones Lang LaSalle's expectations or results, or any change
in events.
ABOUT JONES LANG LASALLE
Jones Lang LaSalle (NYSE: JLL) is a financial and professional services
firm specializing in real estate. The firm offers integrated services
delivered by expert teams worldwide to clients seeking increased value by
owning, occupying or investing in real estate. With 2007 global revenue of
$2.7 billion, Jones Lang LaSalle has approximately 170 offices worldwide
and operates in more than 700 cities in 60 countries. The firm is an
industry leader in property and corporate facility management services,
with a portfolio of approximately 1.2 billion square feet worldwide.
LaSalle Investment Management, the company's investment management
business, is one of the world's largest and most diverse in real estate
with approximately $50 billion of assets under management. For further
information, please visit our Web site, www.joneslanglasalle.com
For further information, please visit our Web site,
www.joneslanglasalle.com | 200 East Randolph Drive Chicago Illinois 60601 |
22 Hanover Square London W1A 2BN | 9 Raffles Place #39-00 Republic Plaza
Singapore 048619
JONES LANG LASALLE REPORTS 15 PERCENT REVENUE GROWTH IN FIRST QUARTER 2008
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CONFERENCE CALL
The firm will conduct a conference call for shareholders, analysts and
investment professionals on Wednesday, April 30 at 9:00 a.m. EDT.
To participate in the teleconference, please dial into one of the following
phone numbers five to 10 minutes before the start time:
.. U.S. callers: +1 877 809 9540
.. International callers: +1 706 679 7364
.. Pass code: 43977105
WEBCAST
Follow these steps to listen to the webcast:
1. You must have a minimum 14.4 Kbps Internet connection
2. Log on to http://www.videonewswire.com/event.asp?id=47769 and follow
instructions
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
CONFERENCE CALL REPLAY
Available: 11:00 a.m. EDT Wednesday, April 30 through Midnight EDT May 7 at
the following numbers:
.. U.S. callers: +1 800 642 1687
.. International callers: +1 706 645 9291
.. Pass code: 43977105
WEB AUDIO REPLAY
Audio replay will be available for download or stream within 24 hours of
conference call. This information and link is also available on the
company's Web site: www.joneslanglasalle.com.
If you have any questions, call Yvonne Peterson of Jones Lang LaSalle's
Investor Relations department at +1 312 228 2919.
# # #
JONES LANG LASALLE INCORPORATED
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE THREE MONTHS ENDED MARCH 31, 2008 AND 2007
(in thousands, except share data)
(Unaudited)
Three Months
Ended March 31,
-------------------------
2008 2007
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Revenue $ 563,920 $ 490,054
Operating expenses:
Compensation and benefits 378,873 325,657
Operating, administrative and other 160,866 115,685
Depreciation and amortization 16,446 12,625
Restructuring credits (188) (411)
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Total operating expenses 555,997 453,556
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Operating income 7,923 36,498
Interest expense, net of interest income 1,176 1,838
Gain on sale of investments -- 2,426
Equity in (loss) earnings from
unconsolidated ventures (2,213) 134
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Income before provision for income taxes
and minority interest 4,534 37,220
Provision for income taxes 1,143 9,924
Minority interest, net of tax 552 --
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Net income $ 2,839 $ 27,296
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Basic earnings per common share $ 0.09 $ 0.85
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Basic weighted average shares outstanding 31,772,825 31,929,818
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Diluted earnings per common share $ 0.09 $ 0.81
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Diluted weighted average shares outstanding 33,229,444 33,687,389
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EBITDA $ 21,604 $ 51,683
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Please reference attached financial statement notes.
JONES LANG LASALLE INCORPORATED
SEGMENT OPERATING RESULTS
FOR THE THREE MONTHS ENDED MARCH 31, 2008 AND 2007
(in thousands)
(Unaudited)
Three Months
Ended March 31,
-------------------------
2008 2007
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INVESTOR & OCCUPIER SERVICES
AMERICAS
Revenue:
Transaction services $ 79,360 $ 72,690
Management services 88,748 70,933
Equity earnings -- 150
Other services 5,757 4,496
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173,865 148,269
Operating expenses:
Compensation, operating
and administrative 166,569 135,886
Depreciation and amortization 7,048 5,922
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173,617 141,808
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Operating income $ 248 $ 6,461
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EMEA
Revenue:
Transaction services $ 132,414 $ 142,138
Management services 48,177 32,082
Equity earnings (loss) 16 (367)
Other services 2,455 3,037
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183,062 176,890
Operating expenses:
Compensation, operating
and administrative 184,060 157,725
Depreciation and amortization 6,021 4,515
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190,081 162,240
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Operating (loss) income $ (7,019) $ 14,650
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ASIA PACIFIC
Revenue:
Transaction services $ 58,883 $ 39,596
Management services 57,073 45,059
Equity (loss) earnings (62) 21
Other services 1,504 1,719
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117,398 86,395
Operating expenses:
Compensation, operating
and administrative 122,407 87,468
Depreciation and amortization 2,877 1,773
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125,284 89,241
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Operating loss $ (7,886) $ (2,846)
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(continued)
JONES LANG LASALLE INCORPORATED
SEGMENT OPERATING RESULTS - CONTINUED
FOR THE THREE MONTHS ENDED MARCH 31, 2008 AND 2007
(in thousands)
(Unaudited)
Three Months
Ended March 31,
-------------------------
2008 2007
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LASALLE INVESTMENT MANAGEMENT
Revenue:
Transaction services $ 4,225 $ 2,519
Advisory fees 72,130 53,919
Incentive fees 13,194 21,866
Equity (loss) earnings (2,167) 330
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87,382 78,634
Operating expenses:
Compensation, operating
and administrative 66,703 60,263
Depreciation and amortization 500 415
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67,203 60,678
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Operating income $ 20,179 $ 17,956
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Total segment revenue $ 561,707 $ 490,188
Reclassification of equity
(loss) earnings (2,213) 134
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Total revenue $ 563,920 $ 490,054
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Total operating expenses
before restructuring credits $ 556,185 $ 453,967
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Operating income before
restructuring credits $ 7,735 $ 36,087
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Please reference attached financial statement notes.
JONES LANG LASALLE INCORPORATED
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2008, DECEMBER 31, 2007 AND MARCH 31, 2007
(in thousands)
March 31, March 31,
2008 December 31, 2007
(Unaudited) 2007 (Unaudited)
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ASSETS
- ------
Current assets:
Cash and cash equivalents $ 74,648 $ 78,580 $ 43,254
Trade receivables,
net of allowances 749,300 834,865 565,654
Notes and other receivables 68,642 52,695 44,162
Prepaid expenses 28,268 26,148 23,859
Deferred tax assets 64,999 64,872 47,806
Other assets 13,994 13,816 27,668
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Total current assets 999,851 1,070,976 752,403
Property and equipment,
at cost, less accumulated
depreciation 200,909 193,329 131,024
Goodwill, with indefinite
useful lives, at cost,
less accumulated
amortization 731,501 694,004 529,912
Identified intangibles, with
finite useful lives,
at cost, less accumulated
amortization 44,673 41,670 37,959
Investments in real estate
ventures 164,042 151,800 133,227
Long-term receivables 42,733 33,219 27,978
Deferred tax assets 84,914 58,584 39,434
Other assets 47,051 48,292 48,815
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$ 2,315,674 $ 2,291,874 $ 1,700,752
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(continued)
JONES LANG LASALLE INCORPORATED
CONSOLIDATED BALANCE SHEETS - CONTINUED
MARCH 31, 2008, DECEMBER 31, 2007 AND MARCH 31, 2007
(in thousands)
March 31, March 31,
2008 December 31, 2007
(Unaudited) 2007 (Unaudited)
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LIABILITIES AND
SHAREHOLDERS' EQUITY
- --------------------
Current liabilities:
Accounts payable and
accrued liabilities $ 255,564 $ 302,976 $ 176,108
Accrued compensation 320,784 655,895 283,099
Short-term borrowings 29,698 14,385 29,090
Deferred tax liabilities 13,811 727 1,734
Deferred income 22,504 29,756 22,988
Deferred business acquisition
obligations 44,542 45,363 18,800
Other liabilities 64,312 60,193 41,079
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Total current liabilities 751,215 1,109,295 572,898
Long-term liabilities:
Credit facilities 350,599 29,205 236,770
Deferred tax liabilities 1,910 6,577 2,090
Deferred compensation 41,468 46,423 29,883
Minimum pension liability 1,096 1,096 19,749
Deferred business acquisition
obligations 33,102 36,679 21,519
Other liabilities 50,484 43,794 40,919
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Total liabilities 1,229,874 1,273,069 923,828
Minority interest 8,767 8,272 --
Shareholders' equity:
Common stock, $.01 par value
per share, 100,000,000 shares
authorized; 31,816,980,
31,722,587 and 36,785,205
shares issued and outstanding
as of March 31, 2008,
December 31, 2007 and
March 31, 2007, respectively 318 317 368
Additional paid-in capital 458,776 441,951 693,572
Retained earnings 487,679 484,840 283,263
Stock held by subsidiary -- -- (219,359)
Stock held in trust (1,930) (1,930) (1,427)
Accumulated other compre-
hensive income 132,190 85,355 20,507
----------- ----------- -----------
Total shareholders'
equity 1,077,033 1,010,533 776,924
----------- ----------- -----------
$ 2,315,674 $ 2,291,874 $ 1,700,752
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Please reference attached financial statement notes.
JONES LANG LASALLE INCORPORATED
SUMMARIZED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2008 AND 2007
(in thousands)
(Unaudited)
Three Months
Ended March 31,
-------------------------
2008 2007
----------- -----------
Cash used in operating activities $ (271,850) $ (182,417)
Cash used in investing activities (69,933) (24,547)
Cash provided by financing activities 337,851 199,606
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Net decrease in cash and
cash equivalents (3,932) (7,358)
Cash and cash equivalents,
beginning of period 78,580 50,612
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Cash and cash equivalents,
end of period $ 74,648 $ 43,254
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Please reference attached financial statement notes.
JONES LANG LASALLE INCORPORATED
FINANCIAL STATEMENT NOTES
1. EBITDA represents earnings before interest expense, net of interest
income, income taxes, depreciation and amortization. Although EBITDA
is a non-GAAP financial measure, it is used extensively by management
and is useful to investors as one of the primary metrics for
evaluating operating performance and liquidity. The firm believes
that an increase in EBITDA is an indicator of improved ability to
service existing debt, to sustain potential future increases in debt
and to satisfy capital requirements. EBITDA is also used in the
calculations of certain covenants related to the firm's revolving
credit facility. However, EBITDA should not be considered as an
alternative either to net income or net cash provided by operating
activities, both of which are determined in accordance with GAAP.
Because EBITDA is not calculated under GAAP, the firm's EBITDA may
not be comparable to similarly titled measures used by other
companies.
Below is a reconciliation of net income to EBITDA (in thousands):
Three Months
Ended March 31,
-------------------------
2008 2007
----------- -----------
Net income $ 2,839 $ 27,296
Add:
Interest expense, net of
interest income 1,176 1,838
Provision for income taxes 1,143 9,924
Depreciation and amortization 16,446 12,625
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EBITDA $ 21,604 $ 51,683
=========== ===========
Below is a reconciliation of net cash provided by operating
activities, the most comparable cash flow measure on the
consolidated statements of cash flows, to EBITDA (in thousands):
Three Months
Ended March 31,
-------------------------
2008 2007
----------- -----------
Net cash used in operating activities $ (271,850) $ (182,417)
Add:
Interest expense, net of
interest income 1,176 1,838
Change in working capital and
non-cash expenses 291,135 222,338
Provision for income taxes 1,143 9,924
----------- -----------
EBITDA $ 21,604 $ 51,683
=========== ===========
2. For purposes of segment operating results, the allocation of
restructuring credits to our segments has been determined to not be
meaningful to investors. Additionally, the performance of segment
results has been evaluated without these charges being allocated.
3. The consolidated statements of cash flows are presented in summarized
form. For complete consolidated statements of cash flows, please
refer to the firm's Quarterly Report on Form 10-Q for the quarter
ended March 31, 2008, to be filed with the Securities and Exchange
Commission shortly.
4. EMEA refers to Europe, Middle East, and Africa.