EXHIBIT 99.1
- ------------
JONES LANG LASALLE NEWS RELEASE
Contact: Lauralee Martin
Title: Chief Operating and Financial Officer
Phone: +1 312 228 2073
JONES LANG LASALLE REPORTS SECOND QUARTER
NET INCOME OF $24.5 MILLION, $0.73 PER SHARE
Performance in Advisory Fees, Management Services
and Leasing Revenue Offsets Capital Markets Decrease
CHICAGO, JULY 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 $24.5 million, or $0.73 per
diluted share of common stock, for the quarter ended June 30, 2008,
compared with net income of $77.9 million, or $2.32 per share, for the
second quarter of 2007. On a year-to-date basis, 2008 net income was $27.4
million, or $0.82 per share, compared with net income of $105 million, or
$3.12 per share in 2007. Operating income for the second quarter of 2008
was $38.2 million, compared with $101 million for the prior year, and on a
year-to-date basis, operating income was $46.1 million in 2008 and $137
million in 2007. Included in the firm's 2007 results was a significant
second-quarter transaction advisory fee earned in the Asia Pacific Hotels
business.
- ------------------------------------------------------------------------
Second Quarter 2008 Highlights:
. LaSalle Investment Management's Advisory fees increased 34 percent
. Management Services revenue increased 28 percent
. Leasing revenue increased 23 percent
- ------------------------------------------------------------------------
Revenue decreased in the second quarter of 2008 compared with 2007 by only
two percent to $660 million, despite the significant advisory fee earned in
Asia Pacific Hotels in 2007 and decreased Capital Markets and Hotels
revenue in 2008. Capital Markets and Hotels revenue, excluding the Asia
Pacific Hotels fee, for the second quarter decreased $34.3 million, or 30
percent, from 2007. The decline in Capital Markets and Hotels was offset by
increased revenue in the quarter across other business lines, led by
LaSalle Investment Management's Advisory fees, which increased 34 percent,
to $72.6 million, over the prior year. The solid second-quarter performance
in Transaction Services revenue included solid contribution from Leasing,
which increased 23 percent to $163 million. Excluding Capital Markets and
Hotels, Transaction Services revenue increased by 33 percent over 2007, to
$266 million, for the second quarter, with increases across all regions.
Management Services revenue increased 28 percent to $215 million for the
second quarter, with all operating regions achieving revenue growth.
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JONES LANG LASALLE REPORTS SECOND QUARTER NET INCOME OF $24.5 MILLION,
$0.73 PER SHARE -- Page 2
For the first half of 2008, revenue increased to $1.2 billion, five percent
over the prior year, despite a year-over-year revenue decrease in Capital
Markets and Hotels of $88.5 million and the 2007 Asia Pacific Hotels
advisory fee. Factors driving year-to-date performance were similar to
those experienced in the second quarter. The current revenue contribution
from 2007 and 2008 acquisitions was approximately $57 million and $96
million for the 2008 second quarter and year to date, respectively.
"Solid revenue performance from LaSalle Investment Management and our
diverse business lines offset the continued impact of illiquid credit
markets on revenue generated by our Capital Markets businesses," said Colin
Dyer, Chief Executive Officer of Jones Lang LaSalle. "We are focused on
driving our expenses to appropriately reflect current operating conditions,
while maintaining leadership positions in Capital Markets and Hotels to
respond to the anticipated needs of the marketplace," Dyer added.
Operating expenses were $621 million for the second quarter of 2008, an
increase of eight percent over 2007, and $1.2 billion year to date, a 14
percent increase. First-half operating costs increased across all investor
and occupier services, principally due to costs associated with the 13
acquisitions that closed in 2007, nine of which were completed in the
second half of the year, including larger transactions in India and France.
2008 operating expenses also include costs associated with 10 acquisitions
completed this year, seven in the first quarter and three in the second.
As a result, year-to-date 2008 operating expenses include costs from these
acquired businesses, including integration and intangible amortization, of
approximately $53 million for the second quarter and $92 million year to
date, which were not reflected in the firm's 2007 results. The firm's
earnings before interest, taxes, depreciation and amortization ("EBITDA")
for the 2008 second quarter and year to date were $55.3 million and $76.9
million, respectively.
BUSINESS SEGMENT SECOND QUARTER PERFORMANCE HIGHLIGHTS
INVESTOR AND OCCUPIER SERVICES
. In the AMERICAS region, revenue for the second quarter of 2008 was
$190 million, an increase of six percent over the same period last
year. For the first half of 2008, revenue was $364 million, an
increase of 11 percent. Excluding the impact of reduced revenue from
Capital Markets and Hotels, which decreased from 2007 by $10.0
million or 40 percent for the quarter, and by $23.1 million or 50
percent year to date, revenue increased 14 percent for the quarter
and 21 percent for the first half of 2008.
Second-quarter revenue benefited from Management Services revenue,
which increased 10 percent over the prior year to $94.9 million,
while Transaction Services revenue excluding Capital Markets and
Hotels grew 22 percent. The year-over-year revenue increase for the
first half of 2008 was driven mainly by Management Services, which
increased 17 percent to $184 million, and Transaction Services
excluding Capital Markets and Hotels, which grew 29 percent primarily
as a result of increased leasing activity. The region's total Leasing
revenue in the second quarter, including both Tenant Representation
and Agency Leasing, increased 17 percent to $59.8 million, and on a
year-to-date basis increased 27 percent to $117 million, compared
with 2007. The growth in Leasing was driven by activity from
recruited transactors and acquisitions completed during 2007.
Additionally, revenue in the firm's Mexico and South America
businesses more than doubled for both the second quarter and first
half of the year compared with 2007.
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JONES LANG LASALLE REPORTS SECOND QUARTER NET INCOME OF $24.5 MILLION,
$0.73 PER SHARE -- Page 3
Operating expenses were $179 million for the second quarter of 2008,
an increase of 12 percent, and $353 million for the first half of the
year, an increase of 17 percent over the prior year. Costs associated
with the hiring of revenue generators in key markets and completion
of acquisitions contributed to the increase in operating expenses.
The region's EBITDA for the 2008 second quarter and year to date was
$18.1 million and $25.3 million, respectively.
On July 11, 2008, the firm completed the previously announced
transaction to merge operations with The Staubach Company, adding
significant strength to the firm's tenant representation business.
Its founder, Roger Staubach, was named to the Jones Lang LaSalle
Board of Directors and to the position of Executive Chairman,
Americas.
. EMEA's second-quarter revenue was $236 million, an increase of
20 percent over the prior year, while revenue in the first half of
2008 was $419 million, an increase of 12 percent over 2007. The
growth in total revenue occurred despite lower revenue from Capital
Markets and Hotels, which decreased in the second quarter by $17.7
million, or 26 percent, and decreased for the first half of the year
by $54.1 million, or 37 percent, compared with the prior year.
Excluding Capital Markets and Hotels, revenue for both the second
quarter and year to date increased by 44 percent over 2007. The
current revenue contribution from 2007 and 2008 acquisitions was
approximately $33 million and $57 million for the 2008 second quarter
and year to date, respectively.
Management Services revenue grew 68 percent to $59.0 million for the
second quarter and 59 percent to $107 million for the first half of
2008. Transaction Services revenue excluding Capital Markets and
Hotels increased 38 percent for the second quarter and 40 percent for
the first half of 2008. While the firm experienced a lower volume of
Capital Markets transactions compared with the prior year, demand and
market share for other services increased. Leasing revenue, included
in Transaction Services revenue, increased over the prior year for
both the second quarter and year to date by 23 and 25 percent,
respectively. Advisory Services revenue, which is also included in
Transaction Services, increased 45 percent for second quarter and 42
percent year to date over the prior year.
Geographically, the slowdown in Capital Markets activity during the
first half of 2008 significantly impacted the UK, Germany and France,
while Capital Markets activity and revenue increased in Dubai, Russia
and Holland, driving healthy year-to-date revenue growth over 2007 in
these markets.
Operating expenses for the second quarter increased 29 percent to
$234 million, and increased 23 percent to $424 million, for the first
half of 2008 compared with 2007, primarily due to the impact of
acquisitions. Of the ten acquisitions completed since the beginning
of 2007, seven were completed during or after the third quarter of
2007. Acquired businesses added approximately $33 million of
incremental operating expenses, including integration and
amortization, in the second quarter results, and approximately $56
million year to date. Acquisitions in the second quarter of 2008
included Kemper's, a 150-person, market-leading retail specialist
business in Germany, and the acquisition of the remaining 51 percent
interest in a Finnish Leasing and Capital Markets business. The
region's EBITDA for the 2008 second quarter and year to date was $9.2
million and $8.2 million, respectively.
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JONES LANG LASALLE REPORTS SECOND QUARTER NET INCOME OF $24.5 MILLION,
$0.73 PER SHARE -- Page 4
. Revenue for the ASIA PACIFIC region was $142 million for the second
quarter of 2008, compared with $211 million in 2007, and $259 million
for the first half of 2008, compared with $298 million in 2007.
Included in the firm's second quarter 2007 results was the
significant transaction advisory fee earned in the Asia Pacific
Hotels business. Management Services revenue for the second quarter
of 2008 was $61.4 million, an increase of 31 percent, and $119
million for the first half of 2008, an increase of 29 percent over
the prior year. The current revenue contribution from 2007 and 2008
acquisitions was approximately $20 million and $32 million for the
2008 second quarter and year to date, respectively.
Capital Markets and Hotels revenue, excluding the 2007 advisory fee
in Hotels, decreased in the second quarter of 2008 by $6.6 million or
30 percent, and decreased for the first half of 2008 by $11.3 million
or 33 percent. Leasing activity momentum continued from the first
quarter of 2008 and, as a result, Leasing revenue increased by 32
percent for the second quarter and 42 percent for the first half of
2008, compared with 2007.
The strongest contributors to the year-over-year revenue growth were
the growth markets of China, Japan and India. Revenue for these
markets increased 40 percent for both the second quarter and first
half of the year over 2007, as they benefited from both growing local
economic markets and the acquisition in India at the beginning of the
third quarter of 2007. The core market of Australia had second
quarter revenue growth of 23 percent over the prior year, while Hong
Kong grew by 18 percent.
Operating expenses for the region were $137 million for the second
quarter of 2008 and $262 million for the first half of 2008. The
operating expenses decreased year over year for the quarter as a
result of incentive compensation recognized in 2007 related to the
transaction advisory fee in the Hotels business. The impact of
acquisitions completed since the beginning of 2007 is included in
2008 operating expenses, adding approximately $15 million to the
second quarter and approximately $28 million to the first half of
2008. During the second quarter of 2008, the firm completed the
acquisition of a market-leading agency business in the Philippines.
The region's EBITDA for the 2008 second quarter and year to date was
$8.2 million and $3.2 million, respectively.
LASALLE INVESTMENT MANAGEMENT
LASALLE INVESTMENT MANAGEMENT continues to benefit from the growth of
its annuity-based business, which generated a year-over-year increase
in Advisory fees of 34 percent for both the second quarter and first
half of 2008. This growth in LaSalle Investment Management's annuity
business was principally due to an 18 percent increase in assets
under management over the prior year, to $54.1 billion, together with
Advisory fees generated from committed capital. Supporting this
growth, the firm's co-investment capital grew to $177 million at the
end of the first quarter of 2008, a 36 percent increase over the
prior year.
During the second quarter of 2008, Incentive fees were $13.0 million,
compared with $29.8 million in 2007, reflecting varied timing in
asset sales compared with a year ago. 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.
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JONES LANG LASALLE REPORTS SECOND QUARTER NET INCOME OF $24.5 MILLION,
$0.73 PER SHARE -- Page 5
LaSalle Investment Management raised $1.0 billion of equity in the
first half of 2008, compared with $2.8 billion for the first half of
2007. Investments made on behalf of clients in the first half of the
year 2008 were $2.2 billion, compared with $3.4 billion in 2007.
SUMMARY
The firm continued to grow its core businesses and globally diverse
business platform, both through organic growth and recent targeted
strategic acquisitions. LaSalle Investment Management's solid financial
results reflect its outstanding track record and research-based approach
for delivering value for clients. Despite the continuing uncertainty in the
credit markets, the firm is actively managing its cost base, while
remaining committed to its leadership position in Capital Markets and
Hotels, and making selective investments in growth geographies and service
lines.
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, 2007 AND IN THE QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTER
ENDED MARCH 31, 2008 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.
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 180 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 more than $54 billion of assets under management. For further
information, please visit our Web site, www.joneslanglasalle.com.
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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 SECOND QUARTER NET INCOME OF $24.5 MILLION,
$0.73 PER SHARE -- Page 6
CONFERENCE CALL
The firm will conduct a conference call for shareholders, analysts and
investment professionals on Wednesday, July 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: 56375110
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=50090
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
SUPPLEMENTAL INFORMATION
Supplemental information regarding the second quarter 2008 earnings call
will be posted to the Investor Relations section of the company's Web site:
www.joneslanglasalle.com approximately 15 minutes prior to the conference
call and webcast, and will be referred to during the call.
CONFERENCE CALL REPLAY
Available: 11:00 a.m. EDT Wednesday, July 30 through Midnight EDT August 7
at the following numbers:
. U.S. callers: +1 800 642 1687
. International callers: +1 706 645 9291
. Pass code: 56375110
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 AND SIX MONTHS ENDED JUNE 30, 2008 AND 2007
(in thousands, except share data)
(Unaudited)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
--------------------- ---------------------
2008 2007 2008 2007
---------- ---------- --------- ----------
Revenue. . . . . . . . . $ 659,515 $ 676,086 $1,223,435 $1,166,139
Operating expenses:
Compensation and
benefits . . . . . . 431,175 436,265 810,047 761,922
Operating, adminis-
trative and other. . 171,875 126,517 332,741 242,253
Depreciation and
amortization . . . . 18,268 12,309 34,714 24,935
Restructuring
credits. . . . . . . -- -- (188) (411)
---------- ---------- ---------- ----------
Total operating
expenses . . . . 621,318 575,091 1,177,314 1,028,699
---------- ---------- ---------- ----------
Operating income . 38,197 100,995 46,121 137,440
Interest expense, net
of interest income . . 3,560 3,830 4,736 5,668
Gain on sale of
investments. . . . . . -- 3,703 -- 6,129
Equity in earnings
(loss) from uncon-
solidated ventures . . 969 6,368 (1,244) 6,502
---------- ---------- ---------- ----------
Income before provision
for income taxes and
minority interest. . . 35,606 107,236 40,141 144,403
Provision for income
taxes. . . . . . . . . 8,973 28,632 10,116 38,556
Minority interest,
net of income taxes. . 1,114 -- 1,666 --
---------- ---------- ---------- ----------
Net income . . . . . . . $ 25,519 $ 78,604 $ 28,359 $ 105,847
========== ========== ========== ==========
Net income available to
common shareholders. . $ 24,516 $ 77,932 $ 27,356 $ 105,175
========== ========== ========== ==========
Basic earnings per
common share . . . . . $ 0.77 $ 2.45 $ 0.86 $ 3.30
========== ========== ========== ==========
Basic weighted average
share outstanding. . . 31,876,045 31,828,364 31,824,435 31,878,811
========== ========== ========== ==========
Diluted earnings per
common share . . . . . $ 0.73 $ 2.32 $ 0.82 $ 3.12
========== ========== ========== ==========
Diluted weighted
average shares
outstanding. . . . . . 33,458,081 33,655,359 33,340,225 33,664,471
========== ========== ========== ==========
EBITDA . . . . . . . . . $ 55,317 $ 122,703 $ 76,922 $ 174,334
========== ========== ========== ==========
Please reference attached financial statement notes.
JONES LANG LASALLE INCORPORATED
SEGMENT OPERATING RESULTS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2008 AND 2007
(in thousands)
(Unaudited)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
--------------------- ---------------------
2008 2007 2008 2007
---------- ---------- --------- ----------
INVESTOR &
OCCUPIER SERVICES
AMERICAS
Revenue:
Transaction
services . . . . . $ 88,065 $ 85,070 $ 167,424 $ 157,759
Management services. 94,945 86,021 183,692 156,952
Equity earnings. . . 41 270 41 420
Other services . . . 6,824 7,638 12,580 12,134
---------- ---------- ---------- ----------
189,875 178,999 363,737 327,265
Operating expenses:
Compensation,
operating and
administrative . . 171,825 153,792 338,394 289,675
Depreciation and
amortization . . . 7,494 6,084 14,542 12,006
---------- ---------- ---------- ----------
179,319 159,876 352,936 301,681
---------- ---------- ---------- ----------
Operating income . . $ 10,556 $ 19,123 $ 10,801 $ 25,584
========== ========== ========== ==========
EBITDA . . . . . . . $ 18,050 $ 25,207 $ 25,343 $ 37,590
---------- ---------- ---------- ----------
EMEA
Revenue:
Transaction
services . . . . . $ 174,456 $ 157,903 $ 306,872 $ 300,041
Management services. 59,027 35,181 107,204 67,264
Equity earnings
(loss) . . . . . . 85 172 102 (195)
Other services . . . 2,530 3,730 4,985 6,767
---------- ---------- ---------- ----------
236,098 196,986 419,163 373,877
Operating expenses:
Compensation,
operating and
administrative . . 226,900 177,830 410,960 335,555
Depreciation and
amortization . . . 6,866 3,931 12,886 8,447
---------- ---------- ---------- ----------
233,766 181,761 423,846 344,002
---------- ---------- ---------- ----------
Operating income
(loss) . . . . . . $ 2,332 $ 15,225 $ (4,683) $ 29,875
========== ========== ========== ==========
EBITDA . . . . . . . $ 9,198 $ 19,156 $ 8,203 $ 38,322
---------- ---------- ---------- ----------
/continued
JONES LANG LASALLE INCORPORATED
SEGMENT OPERATING RESULTS - CONTINUED
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2008 AND 2007
(in thousands)
(Unaudited)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
--------------------- ---------------------
2008 2007 2008 2007
---------- ---------- --------- ----------
ASIA PACIFIC
Revenue:
Transaction
services . . . . . $ 77,748 $ 162,312 $ 136,630 $ 201,908
Management services. 61,444 47,018 118,518 92,077
Equity earnings
(loss) . . . . . . (88) 210 (150) 231
Other services . . . 2,674 1,691 4,178 3,410
---------- ---------- ---------- ----------
141,778 211,231 259,176 297,626
Operating expenses:
Compensation,
operating and
administrative . . 133,553 165,194 255,961 252,715
Depreciation and
amortization . . . 3,451 1,857 6,328 3,630
---------- ---------- ---------- ----------
137,004 167,051 262,289 256,345
---------- ---------- ---------- ----------
Operating income
(loss) . . . . . . $ 4,774 $ 44,180 $ (3,113) $ 41,281
========== ========== ========== ==========
EBITDA . . . . . . . $ 8,225 $ 46,037 $ 3,215 $ 44,911
---------- ---------- ---------- ----------
LASALLE INVESTMENT
MANAGEMENT
Revenue:
Transaction
services . . . . . $ 6,214 $ 5,411 $ 10,439 $ 7,930
Advisory fees. . . . 72,552 54,295 144,683 108,214
Incentive fees . . . 13,036 29,817 26,230 51,683
Equity earnings
(loss) . . . . . . 931 5,716 (1,237) 6,046
---------- ---------- ---------- ----------
92,733 95,239 180,115 173,873
Operating expenses:
Compensation,
operating and
administrative . . 70,772 65,966 137,474 126,230
Depreciation and
amortization . . . 457 437 957 852
---------- ---------- ---------- ----------
71,229 66,403 138,431 127,082
---------- ---------- ---------- ----------
Operating income . . $ 21,504 $ 28,836 $ 41,684 $ 46,791
========== ========== ========== ==========
EBITDA . . . . . . . $ 21,961 $ 29,773 $ 42,641 $ 47,643
---------- ---------- ---------- ----------
- -------------------------------------------------------------------------
/continued
JONES LANG LASALLE INCORPORATED
SEGMENT OPERATING RESULTS - CONTINUED
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2008 AND 2007
(in thousands)
(Unaudited)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
--------------------- ---------------------
2008 2007 2008 2007
---------- ---------- --------- ----------
Total segment
revenue. . . . . . 660,484 682,454 1,222,191 1,172,641
Reclassification
of equity
earnings (loss). . 969 6,368 (1,244) 6,502
---------- ---------- ---------- ----------
Total revenue. . . $ 659,515 $ 676,086 $1,223,435 $1,166,139
========== ========== ========== ==========
Total operating
expenses before
restructuring
credits . . . . . $ 621,318 $ 575,091 $1,177,502 $1,029,110
========== ========== ========== ==========
Operating income
before restruc-
turing credits. . $ 38,197 $ 100,995 $ 45,933 $ 137,029
========== ========== ========== ==========
Please reference attached financial statement notes.
JONES LANG LASALLE INCORPORATED
CONSOLIDATED BALANCE SHEETS
JUNE 30, 2008, DECEMBER 31, 2007 AND JUNE 30, 2007
(in thousands)
JUNE 30, JUNE 30,
2008 DECEMBER 31, 2007
(UNAUDITED) 2007 (UNAUDITED)
----------- ----------- -----------
ASSETS
- ------
Current assets:
Cash and cash equivalents. . . $ 67,650 $ 78,580 $ 37,513
Trade receivables,
net of allowances. . . . . . 665,137 834,865 581,272
Notes and other
receivables. . . . . . . . . 65,155 52,695 60,408
Prepaid expenses . . . . . . . 39,017 26,148 30,319
Deferred tax assets. . . . . . 89,281 64,872 48,034
Other assets . . . . . . . . . 22,857 13,816 22,346
---------- ---------- ----------
Total current assets . . . 949,097 1,070,976 779,892
Property and equipment, at
cost, less accumulated
depreciation . . . . . . . . 220,174 193,329 146,926
Goodwill, with indefinite
useful lives . . . . . . . . 865,184 694,004 580,237
Identified intangibles, with
finite useful lives,
at cost, less
accumulated amortization . . 44,663 41,670 38,822
Investments in real estate
ventures . . . . . . . . . . 177,399 151,800 130,698
Long-term receivables. . . . . 46,927 33,219 30,744
Deferred tax assets. . . . . . 52,578 58,584 40,967
Other assets . . . . . . . . . 55,740 48,292 47,607
---------- ---------- ----------
$2,411,762 $2,291,874 $1,795,893
========== ========== ==========
LIABILITIES AND
SHAREHOLDERS' EQUITY
- --------------------
Current liabilities:
Accounts payable and
accrued liabilities. . . . . $ 254,221 $ 302,976 $ 192,377
Accrued compensation . . . . . 290,533 655,895 365,679
Short-term borrowings. . . . . 23,288 14,385 30,239
Deferred tax liabilities . . . 4,997 727 2,027
Deferred income. . . . . . . . 30,364 29,756 22,796
Deferred business
acquisition obligations. . . 45,168 45,363 19,400
Other liabilities. . . . . . . 73,354 60,193 39,593
---------- ---------- ----------
Total current
liabilities. . . . . . . 721,925 1,109,295 672,111
/continued
JONES LANG LASALLE INCORPORATED
CONSOLIDATED BALANCE SHEETS - CONTINUED
JUNE 30, 2008, DECEMBER 31, 2007 AND JUNE 30, 2007
(in thousands)
JUNE 30, JUNE 30,
2008 DECEMBER 31, 2007
(UNAUDITED) 2007 (UNAUDITED)
----------- ----------- -----------
Long-term liabilities:
Credit facilities. . . . . . . 441,529 29,205 117,710
Deferred tax liabilities . . . 1,470 6,577 1,289
Deferred compensation. . . . . 40,718 46,423 47,267
Pension liability. . . . . . . 1,101 1,096 20,152
Deferred business
acquisition obligations. . . 34,384 36,679 26,039
Other liabilities. . . . . . . 53,237 43,794 41,266
---------- ---------- ----------
Total liabilities. . . . . 1,294,364 1,273,069 925,834
Minority interest. . . . . . . . 9,939 8,272 --
Shareholders' equity:
Common stock, $.01 par value
per share, 100,000,000
shares authorized;
31,929,669, 31,722,587
and 36,821,901 shares
issued and outstanding
as of June 30, 2008,
December 31, 2007 and
June 30, 2007,
respectively . . . . . . . . 319 317 368
Additional paid-in capital . . 476,312 441,951 706,050
Retained earnings. . . . . . . 495,908 484,840 349,705
Stock held by subsidiary . . . -- -- (219,359)
Stock held in trust. . . . . . (1,980) (1,930) (1,427)
Accumulated other compre-
hensive income . . . . . . . 136,900 85,355 34,722
---------- ---------- ----------
Total shareholders'
equity . . . . . . . . . 1,107,459 1,010,533 870,059
---------- ---------- ----------
$2,411,762 $2,291,874 $1,795,893
========== ========== ==========
Please reference attached financial statement notes.
JONES LANG LASALLE INCORPORATED
SUMMARIZED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2008 AND 2007
(in thousands)
(Unaudited)
SIX MONTHS ENDED
JUNE 30,
------------------------
2008 2007
---------- ----------
Cash (used in) provided by
operating activities . . . . . . . . . . . . $ (173,205) $ 20,303
Cash used in investing activities. . . . . . . (242,671) (108,681)
Cash provided by financing activities. . . . . 404,946 75,279
---------- ----------
Net decrease in cash
and cash equivalents . . . . . . . . . (10,930) (13,099)
Cash and cash equivalents,
beginning of period. . . . . . . . . . . . . 78,580 50,612
---------- ----------
Cash and cash equivalents,
end of period. . . . . . . . . . . . . . . . $ 67,650 $ 37,513
========== ==========
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 SIX MONTHS ENDED
JUNE 30, JUNE 30,
--------------------- ---------------------
2008 2007 2008 2007
---------- ---------- --------- ----------
Net income . . . . . . . $ 24,516 $ 77,932 $ 27,356 $ 105,175
Add:
Interest expense,
net of interest
income . . . . . . . . 3,560 3,830 4,736 5,668
Provision for income
taxes. . . . . . . . . 8,973 28,632 10,116 38,556
Depreciation and
amortization . . . . . 18,268 12,309 34,714 24,935
---------- ---------- ---------- ----------
EBITDA . . . . . . . . . $ 55,317 $ 122,703 $ 76,922 $ 174,334
========== ========== ========== ==========
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 SIX MONTHS ENDED
JUNE 30, JUNE 30,
--------------------- ---------------------
2008 2007 2008 2007
---------- ---------- --------- ----------
Net cash provided by
(used in) operating
activities . . . . . . $ 98,645 $ 202,720 $ (173,205) $ 20,303
Add:
Interest expense,
net of interest
income . . . . . . . . 3,560 3,830 4,736 5,668
Change in working
capital and non-cash
expenses . . . . . . . (55,861) (112,479) 235,275 109,807
Provision for
income taxes . . . . . 8,973 28,632 10,116 38,556
---------- ---------- ---------- ----------
EBITDA . . . . . . . . . $ 55,317 $ 122,703 $ 76,922 $ 174,334
========== ========== ========== ==========
/CONTINUED
JONES LANG LASALLE INCORPORATED
FINANCIAL STATEMENT NOTES - CONTINUED
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 June 30, 2008, to be filed with the Securities and Exchange
Commission shortly.
4. EMEA refers to Europe, Middle East, and Africa.