Exhibit 99.1
JONES LANG LASALLE REPORTS SOLID THIRD QUARTER FINANCIAL RESULTS
CHICAGO, Oct. 25 /PRNewswire-FirstCall/ -- Jones Lang LaSalle Incorporated
(NYSE: JLL), the leading global real estate services and money management firm,
today reported net income for the third quarter of 2005 of $20.6 million, or
$0.61 per diluted share of common stock, and net income of $36.8 million, or
$1.10 per share for year-to-date 2005. In 2004, net income for the third quarter
was $15.3 million, or $0.47 per share, and year-to-date net income was $14.3
million, or $0.43 per share. Included in the 2004 year-to-date figures was a
$0.26 per share expense related to the redemption of the firm's euro 165 million
9 percent Senior Notes, which was recorded in June 2004.
For the second consecutive quarter, all segments of the firm reported
year-over-year improvements in revenues for both the quarter and year to date.
In the third quarter, revenues increased 21 percent in both U.S. dollars and
local currencies, to $326.4 million from $270.0 million in 2004. In 2005,
year-to-date revenues increased 18 percent in U.S. dollars, 16 percent in local
currencies, to $891.6 million compared with $754.6 million for the same period
in 2004.
The revenue growth resulted in healthy increases both in operating income
and net income for the quarter and year to date compared with the prior year.
Operating income increased 25 percent for the third quarter of 2005 to $26.6
million, compared with $21.2 million in 2004. On a year-to-date basis, operating
income increased 55 percent in 2005 to $46.2 million from $29.8 million in 2004.
Third Quarter Highlights:
-- Strong revenue growth, up 21 percent in both U.S. dollars and local
currencies
-- Operating income increased 25 percent; Net income increased 35 percent
-- Net debt decreased $96 million from prior year
-- Initial semi-annual dividend declared during quarter and paid on
October 14, 2005
-- Firm announces new share repurchase program
"I am pleased that we delivered another quarter of strong results while
continuing to invest for future growth and returning cash to our shareholders by
initiating a dividend," said Colin Dyer, the firm's President and Chief
Executive Officer. "We are encouraged by healthy market conditions, strong
capital flows and significant demand for real estate services as we enter the
very important fourth quarter when a significant portion of our annual earnings
is generated," Dyer added.
Operating expenses were $299.8 million for the third quarter of 2005
compared with $248.7 million for the same period in 2004, an increase of 21
percent in both U.S. dollars and in local currencies. Year-to-date operating
expenses were $845.4 million in 2005 and $724.8 million in 2004, an increase of
17 percent in U.S. dollars and 15 percent in local currencies from the prior
year. The increase was driven by investments made by the firm to strengthen
positions in key local and regional markets and extend global service lines, as
well as increases in accrued incentive compensation which resulted from the
accelerated timing of revenues compared with the prior year.
Prior to this quarter, non-recurring and restructuring charges were
presented as a separate line item in the consolidated statements of operations.
During the quarter, the firm refined its presentation policy to separately
present only restructuring charges, which are costs to exit operations. As such,
the third-quarter payment of $0.8 million received from the litigation
settlement of the 2003 abandonment of a property management software system in
Asia Pacific was recorded as a credit to "Operating, administrative and other"
expenses. Amounts received during the first half of 2005 and for the nine months
ended September 30, 2004, $1.6 million and $3.4 million, respectively, were
reclassified in the quarter from "non-recurring and restructuring" to conform to
the current presentation. Such reclassification had no impact on consolidated
total operating expenses or operating income. Restructuring charges, which now
exclude non-recurring items, were $0.02 per share for the third quarter of 2005
compared to $0.05 per share in 2004. Year-to-date 2005 restructuring charges
were $0.01 per share compared to $0.02 per share in the prior year.
The current year's interest expense for the third quarter was $1.3 million,
slightly higher than the prior year. Interest expense on a year-to-date basis
for 2005 was $3.0 million compared with $20.0 million for the same period in
2004. The prior year's interest expense included an $11.6 million expense
incurred during the second quarter of 2004 related to the redemption of the
Senior Notes. As a result of this redemption, the firm's year-to-date effective
interest rate decreased significantly compared with the same period of 2004.
Net debt as of September 30, 2005 was $71 million, a $96 million reduction
from the prior year. As previously announced, on October 14, 2005, the firm paid
an initial semi-annual dividend of $0.25 per share of its outstanding common
stock.
The firm's Board of Directors approved a new share repurchase program
allowing for the repurchase of up to a total of 2 million shares, including the
number of shares remaining to be repurchased under the current program. The
authorization allows for purchase in the open market and in privately negotiated
transactions. The repurchase of shares is primarily intended to offset dilution
resulting from both stock and stock option grants made under the firm's existing
stock plans. In 2005, the firm has repurchased approximately 1 million shares
year to date at a cost of $43 million.
The estimated effective tax rate for the third quarter and year to date 2005
was 25.4 percent, as compared with 28.0 percent for the same period last year.
This rate improvement, which has been maintained throughout the current year,
was achieved through disciplined global tax planning and is expected to be
sustainable for the full year.
Business Segment Third Quarter Highlights
Investor and Occupier Services
-- The Americas region's revenues have continued to grow consistently
throughout the current year. Revenues for the third quarter of 2005 were
$103.3 million, an increase of 24 percent over 2004, and $271.2 million
year to date, an increase of 19 percent over the prior year. Management
Services revenues increased 25 percent for the quarter, 21 percent year
to date, while Implementation Services grew 22 percent for the quarter
and 15 percent year to date compared with 2004. Capital Markets, recorded
as Implementation Services revenues, continued its strong performance
compared with the prior year, with revenues increasing more than 100
percent for both the quarter and year to date compared with 2004. The
Real Estate Occupier Services products, marketed as Corporate Solutions,
continued to generate over 50 percent of the region's revenues year to
date. Compared with 2004, Corporate Solutions revenues grew 7 percent for
the quarter and 13 percent year to date. Within Corporate Solutions,
Project and Development Services revenues increased 36 percent for the
quarter and 29 percent year to date while Public Institutions revenues
increased 21 percent for the quarter and 40 percent year to date.
Partially offsetting the increase was Tenant Representation, where lower
client alliance activity resulted in a revenue decline. The Americas
Hotels business also had a robust third quarter, benefiting from its
leadership position in a strong market. In addition, Americas Hotels also
benefited from the previously disclosed acquisition of a hotel real
estate broker and advisory firm completed during the second quarter of
2005.
Total operating expenses increased 23 percent for the quarter and 21
percent year to date compared with 2004. The increase reflects higher
staffing levels necessary to service new client wins, as well as
strategic hiring to expand market coverage in both Agency Leasing and
Capital Markets. Increased accrued incentive compensation also
contributed to the higher operating expenses.
Operating income of $12.5 million for the third quarter of 2005 was 28
percent higher than the prior year. Year-to-date operating income of
$14.6 million remained below the prior year of $16.6 million due to
strategic investments for future growth.
-- The European region's third-quarter revenues increased 11 percent in U.S.
dollars, 12 percent in local currencies, and 8 percent in U.S. dollars, 6
percent in local currencies, year to date. The German marketplace
continued to demonstrate improving market and economic conditions for
real estate services. Revenues in Germany in U.S. dollars increased 35
percent in the quarter, and 37 percent year to date, compared with 2004.
Year to date, the English business continued its solid performance, with
revenues up 10 percent in U.S. dollars driven by strong Capital Markets.
The French business declined compared with the prior year, which included
several large Capital Markets and Agency Leasing transactions. Very
strong market conditions continue for Capital Markets across Europe, with
continued strength both within countries and in Pan-European activity,
while the firm is maintaining its overall market share and mix of
business.
Operating expenses increased by 11 percent in U.S. dollars for the
quarter year over year and 13 percent in local currencies, while
increasing 10 percent in U.S. dollars and 8 percent in local currencies
on a year to date basis due principally to timing of accrued incentive
compensation. Operating and administrative expenses continue to be
aggressively managed.
Operating income of $3.1 million for the third quarter of 2005 was up 5
percent from the prior year. The year-to-date decline in operating income
reflects the slow start to the year following the robust 2004 fourth
quarter.
-- Third-quarter revenues for the Asia Pacific region were up 13 percent in
U.S. dollars and 9 percent in local currencies from the prior year,
despite slippage of several significant transactions into the fourth
quarter. On a year-to-date basis, revenues were up 22 and 18 percent in
U.S. dollars and local currencies, respectively. Growth for the quarter
and year to date in U.S. dollars came from both Implementation Services
revenues, which grew 7 and 23 percent, respectively, and Management
Services revenues, which grew 26 and 21 percent, respectively. Revenues
from growth markets, which include China, Japan and India, increased 44
percent year to date in U.S. dollars over the prior year. Hong Kong
continued its momentum across all business lines, particularly in
transactional services, reflecting its leading market position. Revenues
in Hong Kong increased 12 percent for the quarter and 22 percent year to
date in U.S. dollars. The Asian Hotels business also had another very
strong quarter as a result of increased transaction volume and increased
market share.
Total operating expenses for the Asia Pacific region for the third
quarter of 2005 increased 23 percent in U.S. dollars, 19 percent in local
currencies, over the prior year. On a year-to-date basis, operating
expenses were up 18 percent in U.S. dollars and 15 percent in local
currencies. Operating expenses include the reclassified credits from
"non-recurring and restructuring" expenses, which are excluded from
segment reporting. Excluding the reclassification, expenses increased 16
percent both for the quarter and year to date, the result of continued
investment in people and technology in the growth markets, as well as new
office openings.
Operating income for the third quarter and year to date was $0.8 million
and $8.3 million, respectively. Operating income for the third quarter of
2005 and 2004, before the reclassification, was break- even and $1.7
million, respectively, and year to date $6.0 million for 2005 compared
with an operating loss of $1.8 million for 2004.
LaSalle Investment Management
-- Revenues for the third quarter of 2005 were up over 60 percent in both
U.S. dollars and in local currencies, and, for the year to date were up
approximately 35 percent in both U.S. dollars and in local currencies
over the prior year. The increase in revenues for both the quarter and
year to date over the prior year was driven by incentive fees from asset
sales together with portfolio performance, producing strong investment
returns for the firm's clients. Incentive fees for the third quarter of
2005 were $13.2 million, an increase of $10.1 million, and were $16.9
million year-to-date, an increase of $12.5 million over 2004. Equity
earnings were up $1.1 million for the quarter, although down $3.7 million
year to date, as several larger transactions closed during the first nine
months of 2004. The business continues to emphasize growth in its annuity
revenues from advisory fees, which increased 32 percent from 2004 for the
quarter and 25 percent on a year-to-date basis. Advisory fees accounted
for nearly two-thirds of LaSalle Investment Management's third-quarter
revenues. The overall revenue strength resulted in an increase of over
100 percent in operating income in the quarter over 2004 and 76 percent
year to date.
The strong response to product offerings from investors has resulted in
the business being well ahead of its expected capital-raising activities
with respect to funds planned for launch during this year. Investments
are also exceeding expectations for 2005 and have resulted in assets
under management now exceeding $29 billion, an increase of over $5
billion from a year ago.
Summary
As a leading global service provider and money manager, the firm continues
to benefit from favorable market conditions and increased investment allocations
to real estate. While seasonal industry patterns concentrate profits in the
fourth quarter, the firm continues to emphasize growth in annuity revenues as
well as enhancement of profit margins in all product and service lines. The firm
plans to achieve its previously announced objective of making strategic
investments this year, balancing the achievement of current performance with its
ambitious long-term growth objectives.
About Jones Lang LaSalle
Jones Lang LaSalle is the world's leading real estate services and money
management firm, operating across more than 100 markets around the globe. The
company provides comprehensive integrated expertise, including Management
Services, Implementation Services and investment management services on a local,
regional and global level to owners, occupiers and investors. Jones Lang LaSalle
is also the industry leader in property and corporate facility management
services, with a portfolio of 895 million square feet under management
worldwide. 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 $29 billion of assets under management.
Statements in this press release regarding, among other things, future
financial results and performance, achievements, plans and objectives, dividend
payments and share repurchases may be considered forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995. Such
statements involve known and unknown risks, uncertainties and other factors
which may cause actual results, performance, achievements, plans and objectives
of Jones Lang LaSalle to be materially different from those expressed or implied
by such forward-looking statements. Factors that could cause actual results to
differ materially include those discussed under "Business," "Management's
Discussion and Analysis of Financial Condition and Results of Operations,"
"Quantitative and Qualitative Disclosures about Market Risk," and elsewhere in
Jones Lang LaSalle's Annual Report on Form 10-K for the year ended December 31,
2004 and in the Quarterly Report on Form 10-Q for the quarter ended March 31,
2005 and June 30, 2005, and in other reports filed with the Securities and
Exchange Commission. There can be no assurance that future dividends will be
declared since the actual declaration of future dividends, and the establishment
of record and payment dates, remains subject to final determination by the
Company's Board of Directors. Statements speak only as of the date of this
release. Jones Lang LaSalle expressly disclaims any obligation or undertaking to
update or revise any forward-looking statements contained herein to reflect any
change in Jones Lang LaSalle's expectations or results, or any change in events.
Conference Call
The firm will conduct a conference call for shareholders, analysts and
investment professionals on Wednesday, October 26, 2005 at 9:00 a.m. EDT. To
participate in the teleconference, 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
Replay Information Available: (12:00 p.m. EDT) Wednesday, October 26 through
(Midnight EDT) Wednesday, November 2 at the following numbers:
-- U.S. callers: +1 800 642 1687
-- International callers: +1 706 645 9291
-- Pass code: 1417279
Live web cast
Follow these steps to listen to the web cast:
1. You must have a minimum 14.4 Kbps Internet connection
2. Log on to http://www.joneslanglasalle.com/shareholders/index.asp and
follow instructions
3. Download free Windows Media Player software: (link located under
registration form)
If you experience problems listening, send an e-mail to
webcastsupport@tfprn.com.
This information is also available on the company's website at
http://www.joneslanglasalle.com.
JONES LANG LASALLE INCORPORATED
Consolidated Statements of Earnings
For the Three and Nine Months Ended September 30, 2005 and 2004
(in thousands, except share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------------- -----------------------------
2005 2004 2005 2004
------------- ------------- ------------- -------------
Revenue:
Fee based services $ 320,607 $ 263,949 $ 874,554 $ 740,545
Other income 5,777 5,968 17,094 14,031
Total revenue 326,384 269,917 891,648 754,576
Operating expenses:
Compensation and
benefits 211,035 175,018 592,800 505,544
Operating,
administrative and
other 79,702 62,782 227,184 193,466
Depreciation and
amortization 8,322 8,435 24,967 24,678
Restructuring charges 721 2,442 471 1,083
Total operating
expenses 299,780 248,677 845,422 724,771
Operating income 26,604 21,240 46,226 29,805
Interest and other costs:
Interest expense,
net of interest
income 1,333 1,016 3,019 8,472
Loss on extinguishment
of Euro Notes - - - 11,561
1,333 1,016 3,019 20,033
Equity in earnings from
unconsolidated ventures 2,366 1,034 6,104 10,071
Income before
provision for income
taxes 27,637 21,258 49,311 19,843
Net provision for
income taxes 7,020 5,953 12,525 5,557
Net income $ 20,617 $ 15,305 $ 36,786 $ 14,286
EBITDA $ 37,292 $ 30,709 $ 77,297 $ 52,993
Net income available
to common
shareholders $ 20,231 $ 15,305 $ 36,400 $ 14,286
Basic income per
common share $ 0.64 $ 0.49 $ 1.16 $ 0.46
Basic weighted
average shares
outstanding 31,576,006 30,936,792 31,296,057 30,912,002
Diluted income per
common share $ 0.61 $ 0.47 $ 1.10 $ 0.43
Diluted weighted
average shares
outstanding 33,425,883 32,894,416 32,990,066 32,850,218
Please reference attached financial statement notes.
JONES LANG LASALLE INCORPORATED
Segment Operating Results
For the Three and Nine Months Ended September 30, 2005 and 2004
(in thousands)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------------- -----------------------------
2005 2004 2005 2004
------------- ------------- ------------- -------------
INVESTOR & OCCUPIER SERVICES-
AMERICAS
Revenue:
Implementation
services 44,825 36,763 113,864 98,757
Management
services 55,831 44,774 150,220 124,070
Equity earnings 198 - 381 467
Other services 2,291 1,871 6,040 4,613
Intersegment
revenue 169 234 698 615
103,314 83,642 271,203 228,522
Operating expenses:
Compensation,
operating and
administrative 87,065 70,386 245,477 201,426
Depreciation and
amortization 3,797 3,494 11,080 10,519
Operating Income $ 12,452 $ 9,762 $ 14,646 $ 16,577
EUROPE
Revenue:
Implementation
services 84,734 72,788 236,720 214,389
Management
services 22,179 23,486 70,051 70,211
Equity earnings - - (226) -
Other services 3,740 3,235 9,099 7,191
110,653 99,509 315,644 291,791
Operating expenses:
Compensation,
operating and
administrative 105,164 94,044 307,621 277,701
Depreciation and
amortization 2,435 2,544 7,439 7,998
Operating Income $ 3,054 $ 2,921 $ 584 $ 6,092
ASIA PACIFIC
Revenue:
Implementation
services 35,461 33,083 101,674 82,471
Management
services 28,604 22,683 78,310 64,632
Other services (756) 468 777 1,226
63,309 56,234 180,761 148,329
Operating expenses:
Compensation,
operating and
administrative 60,741 48,554 167,037 141,414
Depreciation and
amortization 1,745 2,104 5,414 5,247
Operating Income $ 823 $ 5,576 $ 8,310 $ 1,668
LASALLE INVESTMENT
MANAGEMENT
Revenue:
Implementation and
other services 3,722 3,092 14,613 8,011
Advisory Fees 32,601 24,616 93,369 74,636
Incentive Fees 13,154 3,058 16,911 4,369
Equity earnings 2,166 1,034 5,949 9,604
51,643 31,800 130,842 96,620
Operating expenses:
Compensation,
operating and
administrative 37,937 25,049 100,547 79,083
Depreciation and
amortization 344 294 1,034 915
Operating Income $ 13,362 $ 6,457 $ 29,261 $ 16,622
Total segment
revenue 328,919 271,185 898,450 765,262
Intersegment
revenue
eliminations (169) (234) (698) (615)
Equity earnings (2,366) (1,034) (6,104) (10,071)
Total revenue $ 326,384 $ 269,917 $ 891,648 $ 754,576
Total segment
operating
expenses 299,228 246,469 845,649 724,303
Intersegment
operating
expense
eliminations (169) (234) (698) (615)
Total operating
expenses before
restructuring
charges $ 299,059 $ 246,235 $ 844,951 $ 723,688
Operating income
before
restructuring
charges $ 27,325 $ 23,682 $ 46,697 $ 30,888
JONES LANG LASALLE INCORPORATED
Consolidated Balance Sheets
September 30, 2005, December 31, 2004 and September 30, 2004
(in thousands)
(unaudited)
September 30, December 31, September 30,
2005 2004 2004
------------- ------------- -------------
(Unaudited) (Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 26,029 $ 30,143 $ 21,628
Trade receivables, net of
allowances 283,763 328,876 233,332
Notes receivable 3,039 2,911 2,315
Other receivables 12,507 11,432 13,626
Prepaid expenses 23,578 22,279 23,585
Deferred tax assets 27,376 28,427 18,730
Other assets 9,793 12,189 13,949
Total current assets 386,085 436,257 327,165
Property and equipment, at cost,
less accumulated depreciation 72,988 75,531 67,017
Goodwill, with indefinite useful
lives, at cost, less accumulated
amortization 338,282 343,314 335,270
Identified intangibles, with
definite useful lives, at cost,
less accumulated
amortization 6,128 8,350 11,524
Investments in and loans to real
estate ventures 83,817 73,570 90,965
Long-term receivables, net 19,206 16,179 13,568
Prepaid pension asset 1,855 2,253 13,884
Deferred tax assets 40,317 43,202 45,924
Debt issuance costs, net 1,161 1,704 1,906
Other assets, net 19,013 12,017 11,137
$ 968,852 $ 1,012,377 $ 918,360
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
liabilities 90,614 $ 130,489 81,303
Accrued compensation 174,648 244,659 133,802
Short-term borrowings 16,469 18,326 27,210
Deferred tax liabilities 819 262 3,498
Deferred income 24,137 16,106 24,189
Other liabilities 31,323 17,221 19,427
Total current liabilities 338,010 427,063 289,429
Long-term liabilities:
Credit facilities 80,213 40,585 160,820
Deferred tax liabilities 348 671 4,711
Deferred compensation 15,560 8,948 8,967
Minimum pension liability 1,703 3,040 -
Other 30,371 24,090 20,467
Total liabilities 466,205 504,397 484,394
Stockholders' equity:
Common stock, $.01 par value per
share, 100,000,000 shares authorized;
35,012,299, 33,243,527 and 32,803,655
shares issued and outstanding as of
September 30, 2005, December 31, 2004
and September 30, 2004, respectively 350 332 328
Additional paid-in capital 613,479 575,862 539,184
Dividends Payable (9,259) - -
Deferred stock compensation (29,576) (34,064) (20,151)
Retained earnings (deficit) 41,682 4,896 (45,060)
Stock held by subsidiary (101,924) (58,898) (48,683)
Stock held in trust (808) (530) (551)
Accumulated other comprehensive
income (loss) (11,297) 20,382 8,899
Total stockholders' equity 502,647 507,980 433,966
$ 968,852 $ 1,012,377 $ 918,360
Please reference attached financial statement notes.
JONES LANG LASALLE INCORPORATED
Summarized Consolidated Statements of Cash Flows
For the Nine Months Ended September 30, 2005 and 2004
(in thousands)
(unaudited)
Nine Months Ended
September 30,
-----------------------------
2005 2004
------------- -------------
Cash provided by earnings $ 79,286 $ 51,644
Cash used in working capital (68,040) (15,188)
Cash provided by operating activities 11,246 36,456
Cash used in investing activities (39,071) (35,391)
Cash provided by (used in) financing activities 23,711 (42,542)
Net decrease in cash and cash equivalents (4,114) (41,477)
Cash and cash equivalents, beginning of period 30,143 63,105
Cash and cash equivalents, end of period $ 26,029 $ 21,628
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):
Nine Months Ended
September 30,
-----------------------------
2005 2004
------------- -------------
Net income $ 36,786 $ 14,286
Add:
Interest expense, net of interest income 3,019 8,472
Depreciation and amortization 24,967 24,678
Net income tax expense 12,525 5,557
EBITDA $ 77,297 $ 52,993
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):
Nine Months Ended
September 30,
-----------------------------
2005 2004
------------- -------------
Net cash provided by operating activities$ 11,246 $ 36,456
Add:
Interest expense, net of interest income 3,019 8,472
Change in working capital and non-cash expenses 50,507 2,508
Net income tax expense 12,525 5,557
EBITDA $ 77,297 $ 52,993
2. Effective the fourth quarter of 2004, 'Equity in earnings from
unconsolidated ventures' has been reclassified, for all periods
presented on the Consolidated Statement of Earnings, from 'Revenue' to
be presented as a separate line item between 'Total interest and other
costs' and 'Income before provision for income taxes', in accordance
with Rule 5-03 of Regulation S-X. As a result, 'Operating income' has
been adjusted for the comparative year. Since equity earnings are an
integral part of the money management business, equity earnings have
been included within 'Revenue' in segment operating results for
discussion purposes only.
3. Net debt represents the aggregate of 'Short-term borrowings,' 'Credit
facilities,' and '9 percent Senior Euro Notes' less 'Cash and cash
equivalents.'
4. For purposes of segment operating results, the allocation of
restructuring charges (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.
5. 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 period ended
September 30, 2005, to be filed with the Securities and Exchange
Commission shortly.
6. Net income available to common shareholders is net income less dividends
declared on unvested common shares of $0.4 million.
SOURCE Jones Lang LaSalle Incorporated
-0- 10/25/2005
/CONTACT: Lauralee E. Martin, Chief Operating and Financial Officer of
Jones Lang LaSalle Incorporated, +1-312-228-2073/
/First Call Analyst: /
/FCMN Contact: /
/Web site: http://www.joneslanglasalle.com /