TO BUSINESS AND REAL ESTATE EDITORS:
Jones Lang LaSalle Reports Record Third Quarter 2007; Net Income of
$46.5 Million, $1.38 Per Share, Up 89 Percent
Firm Declares Increased Semi-Annual Dividend
CHICAGO, Oct. 31 /PRNewswire-FirstCall/ -- Jones Lang LaSalle Incorporated
(NYSE: JLL), the leading integrated global real estate services and money
management firm, today reported record net income of $46.5 million, or $1.38 per
diluted share of common stock, for the quarter ended September 30, 2007, and net
income of $151.7 million, or $4.50 per share, for year-to-date 2007. In 2006,
net income for the third quarter was $24.7 million, or $0.73 per share, with
year-to-date net income of $95.0 million, or $2.85 per share. Revenue for the
third quarter 2007 was $624 million, an increase of 35 percent compared with
2006, and $1.8 billion for the nine months ended September 30, 2007, an increase
of 37 percent over the prior year. Operating income for the third quarter 2007
increased 73 percent to $64.5 million from $37.3 million a year ago, and on a
year-to-date basis increased 55 percent to $202 million from $130 million in the
prior year. The strengthening of foreign currencies against the U.S. dollar
contributed $0.11 per share in the third quarter of 2007 and $0.15 per share on
a year-to-date basis.
All investor and occupier service segments achieved robust revenue growth
for both the third quarter and year-to-date 2007 compared with the same periods
in the prior year. Revenue and operating income growth were particularly strong
in the LaSalle Investment Management and Asia Pacific business segments.
Operating income in the money management business increased to $28.2 million for
the third quarter of 2007 from $10.2 million in the prior year, driven by
advisory fees, while Asia Pacific's operating income increased to $6.9 million
from a loss of $1.9 million in 2006.
Third Quarter 2007 Highlights:
-- Revenue increased 35 percent to $624 million
-- Operating income increased 73 percent to $65 million
-- Increased semi-annual dividend declared -- an increase of 43 percent to
$0.50 per share
"These record results demonstrate the strengths of our global platform and
comprehensive product and service offerings," said Colin Dyer, President and
Chief Executive Officer of Jones Lang LaSalle. "While we recognize the
uncertainty in the capital markets, particularly in the U.S. and the UK, we
expect that the strategic growth investments we have made across our diverse
business, and our focus on superior client service, will produce continued solid
performance in the fourth quarter and into 2008," Dyer added.
Operating expenses were $560 million for the third quarter of 2007, an
increase of 32 percent over 2006, and $1.6 billion on a year-to-date basis, an
increase of 35 percent. Continued additions to client-service staff, both
through hiring and acquisitions, and the expansion of offices globally,
contributed to increased operating expenses. Higher incentive compensation costs
related to the strong revenue and profit performance also resulted in an
increase to operating expenses.
Declaration of Increased Semi-Annual Dividend
The firm also has announced that its Board of Directors has declared a
semi-annual dividend of $0.50 per share of its common stock. The dividend
payment will be made on Friday, December 14, 2007, to holders of record at the
close of business on Thursday, November 15, 2007. This amount represents an
increase of $0.15 per share, or 43 percent, over the amount of the semi-annual
dividend that was paid in June 2007. A dividend-equivalent in the same amount
also will be paid simultaneously on outstanding but unvested shares of
restricted stock units granted under the Company's Stock Award and Incentive
Plan.
Business Segment Third Quarter Performance Highlights
Investor and Occupier Services
-- In the Americas region, revenue for the third quarter 2007 was $188
million, an increase of 25 percent over the prior year. Year-to-date
revenue was $515 million, an increase of 30 percent over the same period
in 2006. Revenue growth in the third quarter over the prior year was
driven equally by Transaction Services and Management Services.
The current quarter's revenue growth benefited from an expanded list of
corporate clients that resulted in account management revenue growth of
40 percent over the prior year. Capital Markets also continued its
momentum from earlier in the year as revenue in the third quarter
increased 41 percent over the prior year. The Public Institutions
business had healthy growth over 2006, as revenue increased 80 percent
for the third quarter and 40 percent year to date.
Total operating expenses for both the quarter and year to date increased
25 percent over the prior year due to the addition of a significant
number of staff and higher incentive compensation expenses driven by
growth in both revenue-generating activities and profit performance.
-- EMEA's third quarter revenue was $225 million, an increase of 33 percent,
and $599 million year to date, an increase of 46 percent over 2006, with
robust growth across all businesses. Transaction Services revenue grew 33
percent for the quarter and 48 percent year to date over the prior year,
while Management Services revenue grew 36 percent for the quarter and 47
percent year to date.
Transaction Services revenue benefited from growth in Agency Leasing,
Advisory Services and Capital Markets. Agency Leasing revenue increased
55 percent for the quarter and 38 percent year to date over 2006. The
growth was driven by increased market share and strong underlying market
conditions. Advisory Services revenue increased 68 and 77 percent for the
third quarter and year to date, respectively. Capital Markets revenue
increased 11 percent for the quarter and 46 percent on a year-to-date
basis. The firm's Capital Markets transaction volumes were up slightly
during the quarter even though total transaction volumes for the European
capital markets as a whole were down 11 percent. This performance
reflects the growth in market share from both acquisitions and the hiring
of new transactors. During the quarter, both the euro and pound sterling
were eight percent stronger than the previous year, which contributed to
the U.S. dollar revenue growth.
Geographically, all countries provided year-over-year revenue growth for
both the quarter and year to date, led by England, Germany and Russia.
England's revenue increased 23 and 33 percent for the third quarter and
year to date, respectively, compared with 2006, benefiting from
investments made in 2006 and healthy growth in Management Services.
Russia's revenue more than doubled for both the quarter and year to date
over the prior year, driven by the increased volume of completed
valuations. Germany continued its momentum from earlier in the year as
revenue increased 44 percent for the third quarter and 85 percent year to
date. Included in EMEA's prior year operating income results was the
impact of a significant portfolio sale recorded in the Hotels business.
Operating expenses increased by 35 percent for the third quarter 2007
compared with the prior year, and increased 40 percent on a year-to-date
basis. The increase was due in part to acquisition and integration costs,
additional operating costs of acquired companies, and staff additions to
service clients and grow market share.
-- In Asia Pacific, revenue for the third quarter 2007 was $134 million, an
increase of 71 percent over the prior year. Year-to-date revenue was $432
million, an increase of more than 100 percent compared with the same
period in 2006. The growth for each period is the result of effective
execution within improving markets and the acquisition closed in India
early in the third quarter of 2007. The strong growth in both Transaction
and Management Services revenue resulted from strategic investments made
in the region's healthy real estate markets.
Geographically, the most significant third quarter revenue contributions
came both from growth markets (India, Japan, China and Korea) and core
markets (Hong Kong, Singapore and Australia). Revenue from the growth
markets more than doubled, led by Japan and India, while revenue for the
core markets increased 48 percent, led by Australia. On a year-to-date
basis, revenue from the growth markets was up more than 100 percent and
core markets revenue increased 39 percent compared with the same period
in 2006. The third quarter results generated by the entire India business
operating as Jones Lang LaSalle Meghraj are included in the region's
revenue and operating expenses from the date of acquisition in early
July. However, because the acquisition was for an ownership share of less
than 100 percent, the portion not belonging to the firm is classified as
a minority interest, net of tax, constituting an offset to net income in
the consolidated results.
Operating expenses for the region increased for both the third quarter
and year to date compared with 2006, as a result of acquisition-related
expenses and higher incentive compensation associated with
revenue-generating activities.
LaSalle Investment Management
LaSalle Investment Management's revenue was $82.3 million for the third
quarter 2007 and $256 million for year-to-date 2007. Revenue for the
third quarter 2007 increased 27 percent, while it decreased year to date
as a result of the $112.5 million incentive fee generated in the second
quarter of 2006.
The revenue increase in the quarter was driven mainly by the
annuity-based business. Advisory fees were $63.6 million for the third
quarter, compared with $45.6 million in 2006, an increase of 40 percent
over the prior year and an increase of 35 percent, to $172 million, on a
year-to-date basis. The growth in the annuity revenue was driven by a
continued healthy increase in assets under management as well as new
capital commitments in certain funds that generate advisory fees on
committed amounts effective from the establishment of the funds. Assets
under management were $46.9 billion at the end of the third quarter 2007,
an increase of 19 percent over the prior year.
Incentive fees for the third quarter decreased to $6.0 million compared
with $14.7 million in the prior year. While the firm continues to build a
portfolio capable of producing incentive fees on a recurring basis,
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 clients.
LaSalle Investment Management raised more than $3.7 billion of equity
during the third quarter 2007, bringing the year-to-date total to $7.9
billion. Global securities mandates accounted for nearly $3.4 billion of
the total capital raise for the year, resulting in a net portfolio
increase for global securities of $1.8 billion. Investments made on
behalf of clients in the third quarter 2007 were $3.9 billion, bringing
total investments to $7.3 billion on a year-to-date basis.
Summary
Aggressive investments made over the last two years to expand market share
and client wins, together with strategic acquisitions, are contributing to the
firm's positive results. Despite an uncertain capital markets environment, the
globally diverse business platform and service lines have positioned the firm
for solid overall performance for the remainder of the year and into 2008.
About Jones Lang LaSalle
Jones Lang LaSalle (NYSE: JLL), the only real estate money management and
services firm named to FORTUNE magazine's "100 Best Companies to Work For" and
Forbes magazine's "400 Best Big Companies," has approximately 160 offices
worldwide and operates in more than 450 cities in over 50 countries. With 2006
revenue of more than $2.0 billion, the company provides comprehensive integrated
real estate and investment management expertise on a local, regional and global
level to owner, occupier and investor clients. Jones Lang LaSalle is an industry
leader in property and corporate facility management services, with a portfolio
of approximately 1.3 billion square feet worldwide. In 2006, the firm completed
capital markets sales and acquisitions, debt financing, and equity placements on
assets and portfolios valued at $70.9 billion. LaSalle Investment Management,
the company's investment management business, is one of the world's largest and
most diverse real estate money management firms, with approximately $46.9
billion of assets under management. For further information, please visit our
Web site, http://www.joneslanglasalle.com.
Statements in this press release regarding, among other things, future
financial results and performance, achievements, plans and objectives and
dividend payments 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. 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. 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, 2006 and in the Quarterly Reports on Form 10-Q for the quarters
ended March 31, 2007 and June 30, 2007 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.
Conference Call
The firm will conduct a conference call for shareholders, analysts and
investment professionals on Thursday, November 1 at 9:00 a.m. Eastern.
To participate in the teleconference on November 1 at 9:00 a.m. Eastern,
please dial into one of the following phone numbers five to ten minutes before
the start time:
-- U.S. callers: +1 877 809 9540
-- International callers: +1 706 679 7364
-- Pass code: 19656344
Replay Information Available: (11:00 a.m. EDT) Thursday, November 1 through
Midnight EDT November 8 at the following numbers:
-- U.S. callers: +1 800 642 1687
-- International callers: +1 706 645 9291
-- Pass code: 19656344
Live 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=42971 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
This information is also available on the company's Web site at
http://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 Nine Months Ended September 30, 2007 and 2006
(in thousands, except share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2007 2006 2007 2006
Revenue $ 624,151 $ 462,317 $ 1,790,291 $ 1,309,204
Operating expenses:
Compensation
and benefits 412,920 313,711 1,174,842 863,326
Operating,
administrative
and other 132,828 99,796 375,082 284,353
Depreciation
and amortization 13,893 11,523 38,828 31,877
Restructuring credits -- -- (411) (670)
Total operating
expenses 559,641 425,030 1,588,341 1,178,886
Operating income 64,510 37,287 201,950 130,318
Interest expense,
net of interest income 4,378 4,112 10,046 11,799
Gain on sale
of investments -- -- 6,129 --
Equity in earnings
from unconsolidated
ventures 4,979 773 11,480 9,422
Income before
provision for
income taxes 65,111 33,948 209,513 127,941
Provision for
income taxes 17,384 9,251 55,940 33,648
Minority interest,
net of tax 1,197 -- 1,197 --
Net income before
cumulative effect
of accounting change 46,530 24,697 152,376 94,293
Cumulative effect
of change in
accounting principle -- -- -- 1,180
Net income $ 46,530 $ 24,697 $ 152,376 $ 95,473
Net income available
to common shareholders $ 46,530 $ 24,697 $ 151,704 $ 94,951
Basic earnings per
common share $ 1.44 $ 0.77 $ 4.73 $ 2.99
Basic weighted
average
shares outstanding 32,416,773 32,106,994 32,060,102 31,771,247
Diluted earnings
per common share $ 1.38 $ 0.73 $ 4.50 $ 2.85
Diluted weighted
average shares
outstanding 33,610,782 33,751,054 33,701,963 33,319,566
EBITDA $ 82,185 $ 49,583 $ 256,518 $ 172,275
Please reference attached financial statement notes.
JONES LANG LASALLE INCORPORATED
Segment Operating Results
For the Three and Nine Months Ended September 30, 2007 and 2006
(in thousands)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2007 2006 2007 2006
INVESTOR & OCCUPIER SERVICES
AMERICAS
Revenue:
Transaction services $ 93,242 $ 75,159 $ 251,001 $ 189,906
Management services 87,436 71,774 244,388 198,836
Equity earnings 1,262 373 1,682 657
Other services 6,026 2,823 18,161 8,256
187,966 150,129 515,232 397,655
Operating expenses:
Compensation, operating
and administrative 161,285 128,159 450,959 358,097
Depreciation and
amortization 6,501 5,852 18,507 16,435
167,786 134,011 469,466 374,532
Operating income $ 20,180 $ 16,118 $ 45,766 $ 23,123
EMEA
Revenue:
Transaction services $ 184,061 $ 138,448 $ 484,102 $ 326,933
Management services 37,836 27,812 105,100 71,595
Equity earnings (loss) 174 22 (21) (284)
Other services 2,774 3,406 9,542 10,771
224,845 169,688 598,723 409,015
Operating expenses:
Compensation, operating
and administrative 205,892 152,518 541,448 386,113
Depreciation and
amortization 4,704 3,518 13,151 8,867
210,596 156,036 554,599 394,980
Operating income $ 14,249 $ 13,652 $ 44,124 $ 14,035
ASIA PACIFIC
Revenue:
Transaction services $ 74,008 $ 45,019 $ 275,916 $ 118,856
Management services 58,054 32,769 150,130 88,650
Equity earnings (loss) 253 (135) 485 1,714
Other services 1,702 622 5,112 3,319
134,017 78,275 431,643 212,539
Operating expenses:
Compensation, operating
and administrative 124,764 78,339 377,480 206,639
Depreciation and
amortization 2,368 1,819 5,998 5,579
127,132 80,158 383,478 212,218
Operating income (loss) $ 6,885 $ (1,883) $ 48,165 $ 321
LASALLE INVESTMENT
MANAGEMENT
Revenue:
Transaction services $ 9,336 $ 4,218 $ 17,267 $ 19,153
Advisory fees 63,643 45,595 171,856 126,947
Incentive fees 6,033 14,672 57,716 145,982
Equity earnings 3,290 513 9,334 7,335
82,302 64,998 256,173 299,417
Operating expenses:
Compensation, operating
and administrative 53,808 54,491 180,038 196,830
Depreciation and
amortization 319 334 1,171 996
54,127 54,825 181,209 197,826
Operating income $ 28,175 $ 10,173 $ 74,964 $ 101,591
Total segment revenue 629,130 463,090 1,801,771 1,318,626
Reclassification of
equity earnings (4,979) (773) (11,480) (9,422)
Total revenue $ 624,151 $ 462,317 $ 1,790,291 $ 1,309,204
Total segment
operating expenses $ 559,641 $ 425,030 $ 1,588,752 $ 1,179,556
Operating income
before
non-recurring items $ 64,510 $ 37,287 $ 201,539 $ 129,648
Please reference attached financial statement notes.
JONES LANG LASALLE INCORPORATED
Consolidated Balance Sheets
September 30, 2007, December 31, 2006, and September
30, 2006
(in thousands)
September 30, September 30,
2007 December 31, 2006
(Unaudited) 2006 (Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 48,172 50,612 $ 34,060
Trade receivables, net of
allowances 656,193 630,121 460,862
Notes and other receivables 46,433 30,079 31,217
Prepaid expenses 29,348 28,040 27,535
Deferred tax assets 52,382 49,230 36,374
Other assets 30,010 19,363 16,860
Total current assets 862,538 807,445 606,908
Property and equipment, at cost,
less accumulated depreciation 165,484 120,376 105,992
Goodwill, with indefinite useful
lives, at cost, less
accumulated amortization 617,748 520,478 512,778
Identified intangibles, with
finite useful lives, at cost,
less accumulated
amortization 40,055 37,583 39,837
Investments in real estate
ventures 134,076 131,789 127,487
Long-term receivables 32,884 29,781 23,006
Deferred tax assets 41,512 37,465 59,547
Other assets 48,288 45,031 27,540
$ 1,942,585 $ 1,729,948 $ 1,503,095
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities:
Accounts payable and accrued
liabilities $ 194,971 $ 221,356 $ 157,705
Accrued compensation 470,731 514,586 322,153
Short-term borrowings 34,520 17,738 19,220
Deferred tax liabilities 2,245 1,426 1,601
Deferred income 25,541 31,896 26,921
Other liabilities 44,661 43,444 38,140
Total current liabilities 772,669 830,446 565,740
Long-term liabilities:
Credit facilities 83,561 32,398 158,029
Deferred tax liabilities 6,978 648 2,273
Deferred compensation 49,937 30,668 21,553
Minimum pension liability 20,581 19,252 17,621
Deferred business acquisition
obligations 47,174 34,178 33,539
Other liabilities 43,254 31,978 30,774
Total liabilities 1,024,154 979,568 829,529
Minority Interest 10,236 -- --
Shareholders' equity:
Common stock, $.01 par value per
share, 100,000,000 shares
authorized;
37,022,323, 36,592,864 and
36,486,588 shares issued and
outstanding as of
September 30, 2007, December 31,
2006, and September 30, 2006,
respectively 370 366 365
Additional paid-in capital 664,791 676,270 655,290
Retained earnings 396,234 255,914 186,979
Stock held by subsidiary (219,359) (197,543) (162,480)
Stock held in trust (1,894) (1,427) (1,405)
Accumulated other comprehensive
income (loss) 68,053 16,800 (5,183)
Total shareholders' equity 908,195 750,380 673,566
$ 1,942,585 $ 1,729,948 $ 1,503,095
Please reference attached financial statement notes.
JONES LANG LASALLE INCORPORATED
Summarized Consolidated Statements of Cash Flows
For the Nine Months Ended September 30, 2007 and 2006
(in thousands)
(Unaudited)
Nine Months Ended
September 30,
2007 2006
Cash provided by operating activities $ 153,418 $ 154,184
Cash used in investing activities (150,622) (268,971)
Cash (used in) provided by financing
activities (5,236) 120,189
Net (decrease) increase in (2,440) 5,402
cash and cash equivalents
Cash and cash equivalents, beginning of
period 50,612 28,658
Cash and cash equivalents, end of
period $ 48,172 $ 34,060
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 Nine Months Ended
September 30, September 30,
2007 2006 2007 2006
Net income $ 46,530 $ 24,697 $151,704 $ 94,951
Add:
Interest expense, net of
interest income 4,378 4,112 10,046 11,799
Provision for income taxes 17,384 9,251 55,940 33,648
Depreciation and amortization 13,893 11,523 38,828 31,877
EBITDA $ 82,185 $ 49,583 $256,518 $172,275
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 Nine Months Ended
September 30, September 30,
2007 2006 2007 2006
Net cash provided by
operating activities $ 133,115 $ 186,225 $ 153,418 $ 154,184
Add:
Interest expense, net of
interest income 4,378 4,112 10,046 11,799
Change in working capital
and non-cash expenses (86,585) (161,528) (1,714) (59,233)
Depreciation and amortization 13,893 11,523 38,828 31,877
Provision for income taxes 17,384 9,251 55,940 33,648
EBITDA $ 82,185 $ 49,583 $ 256,518 $ 172,275
2. Net debt represents the aggregate of Short-Term Borrowings and Credit
Facilities, less Cash and Cash Equivalents.
3. For purposes of segment operating results, the allocation of
restructuring charges 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 Quarterly Report on Form 10-Q for the quarter ended September
30, 2007, to be filed with the Securities and Exchange Commission
shortly.
5. Earnings per common share is calculated by dividing net income available
to common shareholders by weighted average shares outstanding.
Three Months Ended Nine Months Ended
September 30, September 30,
2007 2006 2007 2006
Net income before
cumulative effect of change
in accounting principle $ 46,530 $ 24,697 $ 152,376 $ 94,293
Cumulative effect of change
in accounting principle -- -- -- 1,180
Net income 46,530 24,697 152,376 95,473
Dividends on unvested
common stock -- -- 672 522
Net income available to
common shareholders $ 46,530 $ 24,697 $ 151,704 $ 94,951
Basic weighted average
shares outstanding 32,416,773 32,106,994 32,060,102 31,771,247
Basic income per common
share before cumulative
effect of change in
accounting principle and
dividends on unvested
common stock $ 1.44 $ 0.77 $ 4.75 $ 2.97
Cumulative effect of
change in accounting
principle -- -- -- 0.04
Dividends on unvested
common stock -- -- 0.02 0.02
Basic earnings per common
share $ 1.44 $ 0.77 $ 4.73 $ 2.99
Diluted weighted average
shares outstanding 33,610,782 33,751,054 33,701,963 33,319,566
Diluted income per common
share before cumulative
effect of change in
accounting principle and
dividends on unvested
common stock $ 1.38 $ 0.73 $ 4.52 $ 2.83
Cumulative effect of
change in accounting
principle -- -- -- 0.04
Dividends on unvested
common stock -- -- 0.02 0.02
Diluted earnings per
common share $ 1.38 $ 0.73 $ 4.50 $ 2.85
6. Europe, Middle East, Africa -- EMEA; previously referred to as Europe.