EXHIBIT 99.1
- ------------
JONES LANG LASALLE NEWS RELEASE
Real value in a changing world
Contact: Lauralee Martin
Title: Chief Operating and Financial Officer
Phone: +1 312 228 2073
JONES LANG LASALLE REPORTS
2008 NET INCOME OF $84 MILLION, $2.44 PER SHARE;
ADJUSTED NET INCOME OF $127 MILLION, $3.71 PER SHARE
2008 Revenue of $2.7 Billion Equal to 2007 Despite Global Economic Slowdown
CHICAGO, FEBRUARY 3, 2009 - Jones Lang LaSalle Incorporated (NYSE: JLL),
the leading integrated financial and professional services firm
specializing in real estate, today reported net income on a U.S. GAAP basis
of $84 million, or $2.44 per diluted share of common stock, for the year
ended December 31, 2008, compared with net income of $256 million, or $7.64
per share, for the year ended December 31, 2007. Full-year 2007 results
included a significant transaction advisory fee earned in the Asia Pacific
Hotels business. Excluding restructuring charges and adjusting for certain
impacts of purchase accounting, 2008 net income would have been $127
million, or $3.71 per diluted share of common stock. Operating income for
2008 was $151 million, compared with $342 million for the prior year. The
firm's earnings before interest, taxes, depreciation and amortization
("EBITDA") were $233 million for 2008 and $413 million for 2007.
For the fourth quarter of 2008, net income was $41 million, or $1.17 per
share, compared with net income of $105 million, or $3.16 per share for the
same period in 2007. Operating income for the fourth quarter was $72
million, compared with $140 million in the prior year. Fourth-quarter
EBITDA for 2008 and 2007 was $95 million and $156 million, respectively.
_________________________________________________________________________
FULL-YEAR 2008 HIGHLIGHTS:
.. STRONG GROWTH IN GLOBAL CORPORATE OUTSOURCING
.. AMERICAS REVENUE INCREASE OF 22 PERCENT TO $933 MILLION DRIVEN
BY SUCCESSFUL STAUBACH MERGER AND CORPORATE OUTSOURCING
.. OPERATING INCOME OF $151 MILLION AND EBITDA OF $233 MILLION
_________________________________________________________________________
Included in the firm's 2008 results were 15 acquisitions that closed during
the year, the most significant being The Staubach Company and Kemper's.
Full-year results included $18 million of intangible amortization and $7
million of integration costs related to these two acquisitions.
Fourth-quarter results included $8 million of intangible amortization and
$5 million of integration costs. Full-year results also included severance
charges of $23 million, which resulted from the need to reduce staffing
levels to reflect lower anticipated revenue in certain businesses related
to the global economic slowdown and credit contraction. Integration costs
for the acquisitions, as well as severance charges, are reported as
Restructuring Charges for the full-year and fourth-quarter periods. Total
Restructuring Charges for 2008 were $30 million. These costs are excluded
from segment operating results for the full year and fourth quarter,
although they are included for consolidated reporting.
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JONES LANG LASALLE REPORTS 2008 NET INCOME OF $84 MILLION, $2.44 PER SHARE
- -PAGE 2
Full-year revenue was $2.7 billion in both 2008 and 2007, despite
substantial decreases in Capital Markets and Hotels transaction levels.
Transaction Services revenue decreased by 8 percent from 2007, to $1.4
billion; however, excluding Capital Markets and Hotels, Transaction
Services revenue for the year increased 14 percent over 2007, to $1.1
billion. Management Services revenue increased 22 percent to $882 million
in 2008, with all operating regions contributing to the revenue growth.
LaSalle Investment Management's Advisory fees increased 13 percent over the
prior year to $278 million, and Incentive fees were $59 million in 2008,
compared with $88 million in 2007. Acquisitions completed in 2008
contributed $193 million in revenue for the full year and $104 million for
the fourth quarter.
For the fourth quarter of 2008, revenue was $797 million, a decrease of 8
percent from $862 million in the prior year, driven by the impact of
foreign currency exchange rates as the U.S. dollar strengthened and a $106
million revenue decrease in Capital Markets and Hotels from the fourth
quarter of 2007. On a local currency basis, revenue increased 1 percent
over the same period in 2007. Transaction Services revenue, excluding
Capital Markets and Hotels, was $365 million in the fourth quarter, an
increase of 9 percent over the prior year, and Management Services revenue
was $247 million, an increase of 10 percent over the fourth quarter of
2007.
"Through focused execution for our clients, we gained market share and
maintained revenues in 2008 while aggressively managing our own costs,"
said Colin Dyer, Chief Executive Officer of Jones Lang LaSalle. "With
continuing challenges in 2009, we will focus our superior market knowledge
and execution skills to create value for our clients. We will remain
flexible across our operations to align the company to current market
conditions," Dyer added.
Operating expenses were $2.5 billion for the year, compared with $2.3
billion in 2007, and $725 million for the fourth quarter of 2008, compared
with $721 million in the prior year, including Restructuring Charges of $30
million for the year and $20 million in the fourth quarter. Operating
expenses from the 15 acquisitions completed in 2008, including integration
and intangible amortization, were $192 million for the full year and $92
million for the fourth quarter, which were not reflected in the firm's 2007
results. Specifically, The Staubach Company and Kemper's added to the
firm's cost structure and increased operating expenses compared with 2007.
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JONES LANG LASALLE REPORTS 2008 NET INCOME OF $84 MILLION, $2.44 PER SHARE
- -PAGE 3
BALANCE SHEET
During the fourth quarter, the firm amended its credit agreements with its
bank group to provide additional financial flexibility. The amendments
increased the maximum allowable Leverage Ratio under the credit agreements
from 3.25x to 3.50x through September 2009, provided additions to Adjusted
EBITDA for certain non-recurring charges related primarily to
expense-management actions and adjusted certain other definitions in the
agreements. Our December 19, 2008, Form 8-K filing provides additional
information about the terms of the amendments. The total borrowing
capacity under the agreements is $870 million and the maturity on both
agreements remains June 2012. At December 31, 2008, the firm's Leverage
Ratio as calculated under the amended agreements was 2.24x.
BUSINESS SEGMENT FULL-YEAR AND FOURTH-QUARTER PERFORMANCE HIGHLIGHTS
INVESTOR AND OCCUPIER SERVICES
.. Full-year revenue in the Americas region was $933 million, an
increase of 22 percent over the prior year, and fourth-quarter
revenue was $315 million, an increase of 26 percent. Staubach
contributed $128 million and $81 million of revenue for the full year
and fourth quarter, respectively. This revenue excludes deferred
commissions not recognized due to purchase accounting of $22 million
for the year and $8 million for the fourth quarter as well as $11
million of third-quarter revenue recognized by Staubach prior to the
July 11, 2008, transaction close. The Staubach contribution offset
Capital Markets and Hotels revenue declines of $58 million for the
year and $25 million for the quarter.
Management Services revenue for 2008 increased 17 percent for the
full year, to $422 million, and 10 percent in the quarter, to $127
million, compared with 2007. Transaction Services revenue increased
26 percent for the year, to $479 million, and 39 percent in the
quarter, to $177 million. Excluding Capital Markets and Hotels,
Transaction Services revenue grew 58 percent for the year and 77
percent quarter over quarter compared with 2007. The increases were
primarily the result of additional leasing activity from the Staubach
acquisition. The region's total Leasing revenue for the year
increased 52 percent, to $348 million, up from $229 million in 2007.
For the fourth quarter, Leasing revenue increased 62 percent above
2007 levels, to $134 million. Excluding the Staubach contribution,
Leasing revenue increased 9 percent for the year and decreased 12
percent for the fourth quarter, compared with the respective periods
last year.
The Corporate Solutions business in the Americas, which provides
comprehensive outsourcing services including transactions, project
development and integrated facility management, grew revenues 29
percent for the year and 26 percent in the quarter compared with the
same periods in 2007. The trend toward corporate outsourcing of real
estate services continues as clients assess their operating costs and
look for potential savings.
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JONES LANG LASALLE REPORTS 2008 NET INCOME OF $84 MILLION, $2.44 PER SHARE
- -PAGE 4
Operating expenses were $866 million in 2008, an increase of 26
percent, and $276 million for the fourth quarter, an increase of 28
percent over the prior year. Excluding the impact of the Staubach
acquisition, operating expenses increased 8 percent for the year and
decreased 6 percent for the fourth quarter compared with 2007.
The region's EBITDA for the full year and fourth quarter of 2008 was
$115 million and $56 million, respectively, compared with $106
million and $42 million for the same periods last year.
.. EMEA's full-year 2008 revenue was $871 million, a decrease of
6 percent from the prior year, 5 percent in local currency.
Fourth-quarter revenue was $243 million, a decrease of 26 percent
from 2007, 13 percent in local currency. The largest contributors to
the decreases were Capital Markets and Hotels, down $152 million for
the year, or 44 percent, and down $56 million in the quarter, or 49
percent. Weakening foreign currencies against the U.S. dollar
reduced revenues for the full year and most significantly in the
fourth quarter. Excluding the impact of currency fluctuations and
Capital Markets and Hotels, full-year and fourth-quarter revenue
increased 18 percent and 1 percent, respectively. The revenue
contribution from six acquisitions closed in 2008 was $37 million for
the year and $15 million for the fourth quarter.
Leasing revenue, included in Transaction Services, increased 9
percent for the full year, 8 percent in local currency, but decreased
in the fourth quarter by 17 percent, 8 percent in local currency.
Management Services revenue grew 36 percent for the full year and 3
percent for the fourth quarter compared with the same periods in
2007. The acquisition of a French project development services firm
in the fourth quarter of 2007 largely contributed to the full-year
2008 increase.
Operating expenses were $848 million for the full year in 2008, an
increase of 2 percent from the prior year, 3 percent in local
currency. The six acquisitions completed during the year added $33
million of incremental operating expenses, including integration and
amortization, in the full-year results, and $9 million in the
quarter. Fourth-quarter operating expenses were $221 million, a
decrease of 21 percent from 2007, 8 percent in local currency, driven
by aggressive cost saving actions taken across the region to mitigate
the effect of the global economic slowdown.
The region's EBITDA for the full year and fourth quarter of 2008 was
$50 million and $28 million, respectively, compared with $111 million
and $54 million for the same periods last year.
.. Revenue for the ASIA PACIFIC region was $536 million in 2008,
compared with $602 million in 2007, and $144 million in the fourth
quarter, compared with $170 million in the prior year. Included in
the region's full-year 2007 results was a significant transaction
advisory fee earned in the Hotels business. Excluding the impact of
foreign currency exchange, full-year revenue was down 14 percent, and
fourth-quarter revenue was down 4 percent compared with the same
periods in 2007. The current revenue contribution from five
acquisitions closed in 2008 was $21 million for the year and $6
million in the fourth quarter of 2008.
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JONES LANG LASALLE REPORTS 2008 NET INCOME OF $84 MILLION, $2.44 PER SHARE
- -PAGE 5
Management Services revenue in the region was $245 million for the
year, an increase of 19 percent over 2007, and $65 million for the
fourth quarter of 2008, an increase of 15 percent over the same
period last year, driven by corporate outsourcing facility management
and property management. Transaction Services revenue was $284
million for the full year, a 27 percent decrease from 2007, 28
percent in local currency, and $77 million for the fourth quarter, a
decrease of 31 percent from the prior year, 20 percent in local
currency. Excluding the impact of the 2007 Hotels advisory fee, 2008
Capital Markets and Hotels revenue decreased $52 million year over
year, or 49 percent. Leasing revenue was up 5 percent for the year, 6
percent in local currency, and decreased 25 percent in the fourth
quarter 2008, 15 percent in local currency, compared with 2007.
Operating expenses for the region were $532 million for the full year
and $137 million for the fourth quarter of 2008. With an aggressive
focus on costs, operating expenses were relatively flat year over
year, despite higher occupancy costs from business expansion in
growth markets, as well as additional operating costs and
amortization of intangibles from businesses purchased in 2008. The
impact of the five acquisitions included in 2008 operating expenses
added $20 million to the full year and $6 million to the fourth
quarter.
The region's EBITDA for the full year and fourth quarter of 2008 was
$18 million and $11 million, respectively, compared with $79 million
and $25 million for the same periods last year.
LaSALLE INVESTMENT MANAGEMENT
LaSALLE INVESTMENT MANAGEMENT's 2008 full-year revenue was $352
million, compared with $371 million in the prior year, and
fourth-quarter revenue was $91 million, compared with $115 million in
2007. Advisory fees grew 13 percent to $278 million and partially
offset declines in Transaction Services and Incentive fees as well as
$5 million of equity losses primarily due to asset impairments.
Advisory fees decreased 15 percent for the fourth quarter of 2008,
compared with the prior year, driven by lower asset values in the
public securities business.
Asset sales, a key driver of Incentive fees, continued to be impacted
by the limited availability of financing. Incentive fees were $59
million in 2008, compared with $88 million in 2007. Fourth-quarter
Incentive fees were down 13 percent compared with the fourth quarter
of 2007.
LaSalle Investment Management raised $2.9 billion of equity during
2008 compared with $10.1 billion in 2007, reflecting investor caution
in an increasingly uncertain economic environment. Investments made
on behalf of clients were $4.1 billion in 2008, compared with $8.4
billion in the prior year.
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JONES LANG LASALLE REPORTS 2008 NET INCOME OF $84 MILLION, $2.44 PER SHARE
- -PAGE 6
SUMMARY
The firm has successfully integrated the 15 acquisitions it closed in 2008,
enhancing its market share in local markets and the corporate occupier
space, and diversifying into the retail and industrial sectors. The firm
continues to take aggressive staffing and cost actions in response to the
global economic slowdown while adapting its service offerings to the
changing needs of clients. The firm remains flexible, innovative and
prepared to capitalize on new opportunities to serve clients in the
challenging environment that lies ahead.
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 Reports on Form 10-Q for the
quarters ended March 31, 2008, June 30, 2008, and September 30, 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 2008 global revenue of
$2.7 billion, Jones Lang LaSalle serves clients in 60 countries from 750
locations worldwide, including 180 corporate offices. The firm is an
industry leader in property and corporate facility management services,
with a portfolio of approximately 1.3 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 over $46 billion of assets under management. For further information,
please visit our Web Site: www.joneslanglasalle.com.
JONES LANG LASALLE REPORTS 2008 NET INCOME OF $84 MILLION, $2.44 PER SHARE
- -PAGE 7
CONFERENCE CALL
The firm will conduct a conference call for shareholders, analysts and
investment professionals on Wednesday, February 4 at 9:00 a.m. EST.
To participate in the teleconference, please dial into one of the following
phone numbers five to 10 minutes before the start time:
. U.S. callers: +1 877 809 9540
. International callers: +1 706 679 7364
. Pass code: 80103605
WEBCAST
Follow these steps to listen to the webcast:
1. You must have a minimum 14.4 Kbps Internet connection
2. Log on to http://www.videonewswire.com/event.asp?id=54738 and follow
instructions
3. Download free Windows Media Player software: (link located under
registration form)
4. If you experience problems listening, send an e-mail to
webcastsupport@tfprn.com
SUPPLEMENTAL INFORMATION
Supplemental information regarding the fourth quarter 2008 earnings call
has been posted to the Investor Relations section of the company's Web
site: www.joneslanglasalle.com.
CONFERENCE CALL REPLAY
Available: 11:00 a.m. EST Wednesday, February 4 through Midnight EST
February 12 at the following numbers:
. U.S. callers: +1 800 642 1687
. International callers: +1 706 645 9291
. Pass code: 80103605
WEB AUDIO REPLAY
Audio replay will be available for download or stream within 24 hours of
the conference call. This information and link is also available on the
company's Web site: www.joneslanglasalle.com.
If you have any questions, call Yvonne Peterson of Jones Lang LaSalle's
Investor Relations department at +1 312 228 2919.
# # #
JONES LANG LASALLE INCORPORATED
Consolidated Statements of Earnings
For the Three and Twelve Months Ended December 31, 2008 and 2007
(in thousands, except share data)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
--------------------- ---------------------
2008 2007 2008 2007
---------- ---------- ---------- ----------
Revenue. . . . . . . . . . .$ 797,067 $ 861,785 $2,697,586 $2,652,075
Operating expenses:
Compensation and
benefits . . . . . . . . 512,440 549,332 1,771,673 1,724,174
Operating, adminis-
trative and other. . . . 165,958 155,395 653,465 530,412
Depreciation and
amortization . . . . . . 26,676 16,752 90,584 55,580
Restructuring charges
(credits). . . . . . . . 20,129 -- 30,401 (411)
----------- ---------- ---------- ----------
Total operating
expenses . . . . . . 725,203 721,479 2,546,123 2,309,755
----------- ---------- ---------- ----------
Operating income . . . 71,864 140,306 151,463 342,320
Interest expense,
net of interest income . . 13,336 3,018 30,568 13,064
Gain on sale of
investments. . . . . . . . -- -- -- 6,129
Equity in earnings
(loss) from uncon-
solidated ventures . . . . (3,524) 736 (5,462) 12,216
---------- ---------- ---------- ----------
Income before provision
for income taxes . . . . . 55,004 138,024 115,433 347,601
Provision for income
taxes. . . . . . . . . . . 13,515 31,655 28,743 87,595
Minority interest,
net of tax . . . . . . . . (31) 976 1,807 2,174
---------- ---------- ---------- ----------
Net income . . . . . . . . .$ 41,520 $ 105,393 $ 84,883 $ 257,832
========== ========== ========== ==========
Net income available to
common shareholders. . . .$ 41,155 $ 104,722 $ 83,515 $ 256,490
========== ========== ========== ==========
Basic earnings per
common share . . . . . . .$ 1.19 $ 3.28 $ 2.52 $ 8.01
========== ========== ========== ==========
Basic weighted average
shares outstanding . . . .34,498,974 31,906,476 33,098,228 32,021,380
========== ========== ========== ==========
Diluted earnings per
common share . . . . . . .$ 1.17 $ 3.16 $ 2.44 $ 7.64
========== ========== ========== ==========
Diluted weighted
average share
outstanding. . . . . . . .35,059,856 33,101,792 34,205,120 33,577,927
========== ========== ========== ==========
EBITDA . . . . . . . . . . .$ 94,682 $ 156,147 $ 233,410 $ 412,729
========== ========== ========== ==========
Please reference attached financial statement notes.
JONES LANG LASALLE INCORPORATED
Segment Operating Results
For the Three and Twelve Months Ended December 31, 2008 and 2007
(in thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
--------------------- ---------------------
2008 2007 2008 2007
---------- ---------- ---------- ----------
INVESTOR & OCCUPIER
SERVICES
AMERICAS
Revenue:
Transaction services . .$ 177,318 $ 127,814 $ 478,918 $ 378,815
Management services. . . 127,140 115,343 421,635 359,731
Equity earnings (loss) . 242 (56) 283 1,626
Other services . . . . . 10,776 6,896 32,451 25,057
---------- ---------- ---------- ----------
315,476 249,997 933,287 765,229
Operating expenses:
Compensation,
operating and
administrative. . . . . 259,595 208,432 818,369 659,392
Depreciation and
amortization. . . . . . 16,445 6,880 47,808 25,387
---------- ---------- ---------- ----------
276,040 215,312 866,177 684,779
---------- ---------- ---------- ----------
Operating income . . .$ 39,436 $ 34,685 $ 67,110 $ 80,450
========== ========== ========== ==========
EBITDA . . . . . . . .$ 55,881 $ 41,565 $ 114,918 $ 105,837
---------- ---------- ---------- ----------
EMEA
Revenue:
Transaction services . .$ 186,795 $ 270,327 $ 641,102 $ 754,428
Management services. . . 54,363 52,683 215,222 157,783
Equity earnings (loss) . (939) 394 (840) 373
Other services . . . . . 2,901 3,956 15,359 13,497
---------- ---------- ---------- ----------
243,120 327,360 870,843 926,081
Operating expenses:
Compensation, operating
and administrative. . . 214,986 273,489 820,638 814,936
Depreciation and
amortization. . . . . . 6,427 6,552 27,291 19,703
---------- ---------- ---------- ----------
221,413 280,041 847,929 834,639
---------- ---------- ---------- ----------
Operating income . . .$ 21,707 $ 47,319 $ 22,914 $ 91,442
========== ========== ========== ==========
EBITDA . . . . . . . .$ 28,134 $ 53,871 $ 50,205 $ 111,145
---------- ---------- ---------- ----------
JONES LANG LASALLE INCORPORATED
Segment Operating Results - (Continued)
For the Three and Twelve Months Ended December 31, 2008 and 2007
(in thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
--------------------- ---------------------
2008 2007 2008 2007
---------- ---------- ---------- ----------
ASIA PACIFIC
Revenue:
Transaction services . .$ 77,307 $ 112,212 $ 284,320 $ 388,129
Management services. . . 64,586 56,198 244,672 206,329
Equity earnings (loss) . (26) 17 (732) 502
Other services . . . . . 2,576 2,069 7,913 7,181
---------- ---------- ---------- ----------
144,443 170,496 536,173 602,141
Operating expenses:
Compensation,
operating and
administrative. . . . . 133,642 145,764 518,580 523,179
Depreciation and
amortization. . . . . . 3,161 2,775 13,123 8,774
---------- ---------- ---------- ----------
Operating income . . .$ 7,640 $ 21,957 $ 4,470 $ 70,188
========== ========== ========== ==========
EBITDA . . . . . . . .$ 10,801 $ 24,732 $ 17,593 $ 78,962
---------- ---------- ---------- ----------
LASALLE INVESTMENT
MANAGEMENT
Revenue:
Transaction services . .$ 4,601 $ 10,502 $ 19,087 $ 27,768
Advisory fees. . . . . . 62,218 73,282 277,864 245,138
Incentive fees . . . . . 26,486 30,503 59,043 88,219
Equity earnings (loss) . (2,801) 381 (4,173) 9,715
---------- ---------- ---------- ----------
90,504 114,668 351,821 370,840
Operating expenses:
Compensation,
operating and
administrative. . . . . 70,176 77,042 267,552 257,079
Depreciation and
Amortization . . . . . . 642 545 2,361 1,716
---------- ---------- ---------- ----------
70,818 77,587 269,913 258,795
---------- ---------- ---------- ----------
Operating income . . .$ 19,686 $ 37,081 $ 81,908 $ 112,045
========== ========== ========== ==========
EBITDA . . . . . . . .$ 20,328 $ 37,626 $ 84,269 $ 113,761
---------- ---------- ---------- ----------
JONES LANG LASALLE INCORPORATED
Segment Operating Results - (Continued)
For the Three and Twelve Months Ended December 31, 2008 and 2007
(in thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
--------------------- ---------------------
2008 2007 2008 2007
---------- ---------- ---------- ----------
- ------------------------------------------------------------------------
Total segment
revenue . . . . . . .$ 793,543 $ 862,521 $2,692,124 $2,664,291
Reclassification of
equity earnings
(loss). . . . . . . . (3,524) 736 (5,462) 12,216
---------- ---------- ---------- ----------
Total revenue. . . .$ 797,067 $ 861,785 $2,697,586 $2,652,075
========== ========== ========== ==========
Total operating
expenses before
restructuring
changes
(credits) . . . . .$ 705,074 $ 721,479 $2,515,722 $2,310,166
========== ========== ========== ==========
Operating income
before restruc-
turing charges
(credits) . . . . .$ 91,993 $ 140,306 $ 181,864 $ 341,909
========== ========== ========== ==========
JONES LANG LASALLE INCORPORATED
Consolidated Balance Sheets
December 31, 2008 and 2007
(in thousands)
(Unaudited)
December 31, December 31,
2008 2007
------------ ------------
ASSETS
- ------
Current assets:
Cash and cash equivalents. . . . . . . . . . $ 45,893 $ 78,580
Trade receivables, net of allowances . . . . 718,804 834,865
Notes and other receivables. . . . . . . . . 89,636 52,695
Prepaid expenses . . . . . . . . . . . . . . 32,990 26,148
Deferred tax assets. . . . . . . . . . . . . 102,934 64,872
Other assets . . . . . . . . . . . . . . . . 9,511 13,816
---------- ----------
Total current assets . . . . . . . . . 999,768 1,070,976
Property and equipment, at cost,
less accumulated depreciation. . . . . . . 224,845 193,329
Goodwill, with indefinite useful lives . . . 1,448,663 694,004
Identified intangibles, with finite
useful lives, at cost, less accumulated
amortization . . . . . . . . . . . . . . . 59,319 41,670
Investments in real estate ventures. . . . . 179,875 151,800
Long-term receivables. . . . . . . . . . . . 51,974 33,219
Deferred tax assets. . . . . . . . . . . . . 58,639 58,584
Other assets . . . . . . . . . . . . . . . . 53,942 48,292
---------- ----------
$3,077,025 $2,291,874
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
Current liabilities:
Accounts payable and accrued liabilities . . $ 352,489 $ 302,976
Accrued compensation . . . . . . . . . . . . 487,895 655,895
Short-term borrowings. . . . . . . . . . . . 24,570 14,385
Deferred tax liabilities . . . . . . . . . . 2,698 727
Deferred income. . . . . . . . . . . . . . . 29,213 29,756
Deferred business acquisition obligations. . 13,073 45,363
Other liabilities. . . . . . . . . . . . . . 77,947 60,193
---------- ----------
Total current liabilities. . . . . . . 987,885 1,109,295
Long-term liabilities:
Credit facilities. . . . . . . . . . . . . . 483,942 29,205
Deferred tax liabilities . . . . . . . . . . 4,429 6,577
Deferred compensation. . . . . . . . . . . . 44,888 46,423
Pension liability. . . . . . . . . . . . . . 4,101 1,096
Deferred business acquisition obligations. . 371,636 36,679
Minority shareholder redemption liability. . 43,313 --
Other liabilities. . . . . . . . . . . . . . 65,026 43,794
---------- ----------
Total liabilities. . . . . . . . . . . 2,005,220 1,273,069
JONES LANG LASALLE INCORPORATED
Consolidated Balance Sheets - (Continued)
December 31, 2008 and 2007
(in thousands)
(Unaudited)
December 31, December 31,
2008 2007
------------ ------------
Minority Interest. . . . . . . . . . . . . . . 4,123 8,272
Shareholders' equity:
Common stock, $.01 par value per share,
100,000,000 shares authorized;
34,561,648 and 31,722,587 shares issued
and outstanding as of December 31, 2008
and December 31, 2007, respectively. . . . 346 317
Additional paid-in capital . . . . . . . . . 599,742 441,951
Retained earnings. . . . . . . . . . . . . . 543,318 484,840
Stock held in trust. . . . . . . . . . . . . (3,504) (1,930)
Accumulated other comprehensive income
(loss) . . . . . . . . . . . . . . . . . . (72,220) 85,355
---------- ----------
Total shareholders' equity . . . . . . 1,067,682 1,010,533
---------- ----------
$3,077,025 $2,291,874
========== ==========
JONES LANG LASALLE INCORPORATED
Summarized Consolidated Statements of Cash Flows
For the Twelve Months Ended December 31, 2008 and 2007
(in thousands)
(Unaudited)
Twelve Months Ended
December 31,
------------------------
2008 2007
---------- ----------
Cash provided by operating activities. . . . . $ 33,365 $ 409,418
Cash used in investing activities. . . . . . . (494,864) (258,502)
Cash provided by (used in)
financing activities . . . . . . . . . . . . 428,812 (122,948)
---------- ----------
Net (decrease) increase in
cash and cash equivalents. . . . . . (32,687) 27,968
Cash and cash equivalents,
beginning of period. . . . . . . . . 78,580 50,612
---------- ----------
Cash and cash equivalents,
end of period. . . . . . . . . . . . $ 45,893 $ 78,580
========== ==========
Please reference attached financial statement notes.
JONES LANG LASALLE INCORPORATED
Financial Statement Notes
1. Charges excluded from GAAP net income to arrive at adjusted net
income for the quarter and the year ended December 31, 2008, are
amortization expense and integration costs related to two significant
acquisitions completed in 2008, acquisition leasing activity that
could not be recognized as revenue under U.S. GAAP purchase
accounting, and severance.
Below is a reconciliation of the impacts on net income and diluted
earnings per share of charges excluded from GAAP net income to arrive
at adjusted net income and adjusted earnings per share (in millions
after tax, except per share):
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------ -------------------
Net Diluted Net Diluted
Income EPS Income EPS
-------- -------- -------- --------
GAAP net income and
diluted earnings
per share. . . . . . . . $ 41.2 $ 1.17 $ 83.5 $ 2.44
Add:
Intangibles amortization . 6.2 0.18 13.2 0.39
Acquisition leasing
activity . . . . . . . . 2.5 0.07 7.3 0.21
Acquisition integration
costs. . . . . . . . . . 3.5 0.10 5.1 0.15
Severance. . . . . . . . . 11.6 0.33 17.7 0.52
-------- -------- -------- --------
Adjusted net income and
diluted earnings
per share. . . . . . . . $ 65.0 $ 1.85 $ 126.8 $ 3.71
======== ======== ======== ========
2. 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.
JONES LANG LASALLE INCORPORATED
Financial Statement Notes - (Continued)
Below is a reconciliation of net income to EBITDA (in thousands):
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------ -------------------
2008 2007 2008 2007
-------- -------- -------- --------
Net income . . . . . . . . $ 41,155 $104,722 $ 83,515 $256,490
Add:
Interest expense, net of
interest income. . . . . 13,336 3,018 30,568 13,064
Provision for
income taxes . . . . . . 13,515 31,655 28,743 87,595
Depreciation and
amortization . . . . . . 26,676 16,752 90,584 55,580
-------- -------- -------- --------
EBITDA . . . . . . . . . . $ 94,682 $156,147 $233,410 $412,729
======== ======== ======== ========
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 Twelve Months Ended
December 31, December 31,
------------------ -------------------
2008 2007 2008 2007
-------- -------- -------- --------
Net cash provided by
operating activities . . $146,487 $256,007 $ 33,365 $409,418
Add:
Interest expense, net of
interest income. . . . . 13,336 3,018 30,568 13,064
Change in working capital
and non-cash expenses. . (78,656) (134,533) 140,734 (97,348)
Provision for income
taxes. . . . . . . . . . 13,515 31,655 28,743 87,595
-------- -------- -------- --------
EBITDA . . . . . . . . . . $ 94,682 $156,147 $233,410 $412,729
======== ======== ======== ========
3. 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.
4. The consolidated statements of cash flows are presented in summarized
form. For complete consolidated statements of cash flows, please
refer to the firm's Annual Report on Form 10-K for the year ended
December 31, 2008, to be filed with the Securities and Exchange
Commission shortly.
5. EMEA refers to Europe, Middle East, and Africa.