Maryland | 001-13145 | 36-4150422 | ||
(State or other jurisdiction | (Commission File Number) | (I.R.S. Employer Identification No.) | ||
of incorporation or organization) |
200 East Randolph Drive, Chicago, IL | 60601 | |
(Address of principal executive offices) | (Zip Code) |
[ ] | Written communications pursuant to Rule 425 under Securities Act (17 CFR 230.425) |
[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
99.1. | News release issued by Jones Lang LaSalle Incorporated on November 2, 2016 announcing its |
financial results for the third quarter ended September 30, 2016. |
Dated: November 2, 2016 | |||
Jones Lang LaSalle Incorporated | |||
By: /s/ Christie B. Kelly | |||
Name: Christie B. Kelly | |||
Title: Executive Vice President and Chief Financial Officer |
99.1. | News release issued by Jones Lang LaSalle Incorporated on November 2, 2016 announcing its |
financial results for the third quarter ended September 30, 2016. | |
News Release | ||||
• | Broad-based revenue growth across geographic segments and service lines |
• | Margin performance reflects anticipated reduction of LaSalle incentive fees and equity earnings, the impact of UK transactional market decline and expansion of global annuity business |
• | Corporate Solutions continues to win new business and enhance service capabilities with growth driven by the Integral facilities management acquisition |
• | Accelerated investments in technology, data and acquisitions |
• | LaSalle assets under management reach record high of $59.7 billion with strong annuity-based advisory fees and capital raise |
• | Semi-annual dividend increases 6 percent to $0.33 per share |
Summary Financial Results | Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | |||||||||||||
($ in millions, except per share data) | 2016 | 2015 | 2016 | 2015 | ||||||||||
Revenue | $ | 1,705 | $ | 1,501 | $ | 4,646 | $ | 4,078 | ||||||
Fee Revenue1 | $ | 1,447 | $ | 1,287 | $ | 3,910 | $ | 3,498 | ||||||
Net Income2 | $ | 48 | $ | 110 | $ | 153 | $ | 243 | ||||||
Adjusted Net Income2 | $ | 65 | $ | 116 | $ | 190 | $ | 254 | ||||||
Earnings per Share | $ | 1.05 | $ | 2.43 | $ | 3.35 | $ | 5.34 | ||||||
Adjusted Earnings per Share2 | $ | 1.42 | $ | 2.56 | $ | 4.17 | $ | 5.59 | ||||||
Adjusted EBITDA3 | $ | 127 | $ | 188 | $ | 372 | $ | 432 | ||||||
Adjusted EBITDA, Real Estate Services | $ | 113 | $ | 125 | $ | 277 | $ | 302 | ||||||
Adjusted EBITDA, LaSalle Investment Management | $ | 14 | $ | 63 | $ | 95 | $ | 130 | ||||||
See Financial Statement Notes (1), (2) and (3) following the Financial Statements in this news release | ||||||||||||||
All earnings per share amounts are presented on a diluted basis. | ||||||||||||||
Consolidated Revenue ($ in millions, “LC” = local currency) | Three Months Ended September 30, | % Change in USD | % Change in LC | ||||||||
2016 | 2015 | ||||||||||
Real Estate Services (“RES”) | |||||||||||
Leasing | $ | 448.7 | $ | 417.8 | 7% | 8% | |||||
Capital Markets & Hotels | 240.9 | 223.9 | 8% | 10% | |||||||
Property & Facility Management | 503.0 | 376.4 | 34% | 40% | |||||||
Property & Facility Management Fee Revenue1 | 383.6 | 268.8 | 43% | 49% | |||||||
Project & Development Services | 294.0 | 232.3 | 27% | 30% | |||||||
Project & Development Services Fee Revenue1 | 155.4 | 125.9 | 23% | 25% | |||||||
Advisory, Consulting and Other | 138.3 | 116.7 | 19% | 22% | |||||||
Total RES Revenue | $ | 1,624.9 | $ | 1,367.1 | 19% | 22% | |||||
Total RES Fee Revenue1 | $ | 1,366.9 | $ | 1,153.1 | 19% | 21% | |||||
LaSalle Investment Management ("LaSalle") | |||||||||||
Advisory Fees | $ | 66.4 | $ | 60.7 | 9% | 12% | |||||
Transaction Fees & Other | 7.9 | 5.0 | 58% | 58% | |||||||
Incentive Fees | 6.0 | 68.5 | (91)% | (91)% | |||||||
Total LaSalle Revenue | $ | 80.3 | $ | 134.2 | (40)% | (39)% | |||||
Total Firm Revenue | $ | 1,705.2 | $ | 1,501.3 | 14% | 17% | |||||
Total Fee Revenue1 | $ | 1,447.2 | $ | 1,287.3 | 12% | 15% | |||||
n.m. - not meaningful as represented by a percentage change of greater than 100%, favorably or unfavorably. |
Consolidated Revenue ($ in millions, “LC” = local currency) | Nine Months Ended September 30, | % Change in USD | % Change in LC | ||||||||
2016 | 2015 | ||||||||||
RES | |||||||||||
Leasing | $ | 1,183.9 | $ | 1,103.3 | 7% | 8% | |||||
Capital Markets & Hotels1 | 630.6 | 624.7 | 1% | 3% | |||||||
Property & Facility Management | 1,299.2 | 1,111.0 | 17% | 22% | |||||||
Property & Facility Management Fee Revenue1 | 964.8 | 786.1 | 23% | 27% | |||||||
Project & Development Services | 843.4 | 603.5 | 40% | 43% | |||||||
Project & Development Services Fee Revenue1 | 442.3 | 348.4 | 27% | 29% | |||||||
Advisory, Consulting and Other | 380.7 | 335.6 | 13% | 17% | |||||||
Total RES Revenue | $ | 4,337.8 | $ | 3,778.1 | 15% | 18% | |||||
Total RES Fee Revenue1 | $ | 3,602.3 | $ | 3,198.1 | 13% | 15% | |||||
LaSalle | |||||||||||
Advisory Fees | $ | 195.0 | $ | 181.3 | 8% | 10% | |||||
Transaction Fees & Other | 40.8 | 19.5 | n.m. | n.m. | |||||||
Incentive Fees | 72.0 | 99.3 | (27)% | (30)% | |||||||
Total LaSalle Revenue | $ | 307.8 | $ | 300.1 | 3% | 3% | |||||
Total Revenue | $ | 4,645.6 | $ | 4,078.2 | 14% | 17% | |||||
Total Fee Revenue1 | $ | 3,910.1 | $ | 3,498.2 | 12% | 14% | |||||
n.m. - not meaningful as represented by a percentage change of greater than 100%, favorably or unfavorably. | |||||||||||
Percentage variances in the Consolidated Performance Highlights below are calculated and presented on a local currency basis. |
• | Record revenue performance for the third quarter with consolidated revenue of $1.7 billion, compared with $1.5 billion last year, and consolidated fee revenue of $1.4 billion, up 15 percent from 2015, fueled by acquisition-driven and organic expansion. Strong RES fee revenue growth was led by Property & Facility Management, up $115 million or 49 percent; Project & Development Services, up $30 million or 25 percent; and Leasing, up $31 million or 8 percent. Capital Markets & Hotels revenue was up $17 million, or 10 percent, and performed well against a decline in global market volumes despite a tough comparable in third quarter 2015. |
• | LaSalle generated solid performance, driven by continued expansion of annuity-based advisory fees. |
• | Consolidated operating expenses for the third quarter were $1.6 billion, up 22 percent, compared with $1.4 billion last year. Consolidated fee-based operating expenses, excluding restructuring and acquisition charges, were $1.4 billion for the third quarter, compared with $1.1 billion last year, an increase of 22 percent, primarily driven by increases in headcount associated with investments in technology, data and acquisitions along with the expansion of annuity businesses. |
• | Net income attributable to common shareholders for the quarter was $48 million, compared with $110 million last year. Adjusted EBITDA for the quarter was $127 million, compared with $188 million last year, reflecting strong revenue growth balanced with a change in overall business mix and previously highlighted investments. Comparability was impacted by $94 million of equity earnings and incentive fees recognized last year primarily as a result of the sale of real estate assets on behalf of clients, against current quarter comparable activity of $11 million. Adjusted EBITDA margin calculated on a fee-revenue basis was 8.4 percent for the quarter, compared with 14.6 percent last year. |
• | Earnings per share for the quarter were $1.05, compared with $2.43 last year. Adjusted earnings per share were $1.42, compared with $2.56 last year. |
• | Total net debt was $1.3 billion at quarter end, an increase of $0.3 billion from the second quarter of 2016 and $0.9 billion from the third quarter of last year, primarily reflecting the pace of acquisitions. |
• | Net interest expense for the quarter was $12.4 million, up from $6.8 million in 2015, primarily due to higher average borrowings compared with last year. |
• | The company's Board of Directors declared a semi-annual dividend of $0.33 per share, a 6 percent increase from the $0.31 per share payment made in June 2016. The dividend payment will be made on December 15, 2016, to shareholders of record at the close of business on November 15, 2016. |
Americas Revenue ($ in millions, “LC” = local currency) | Three Months Ended September 30, | % Change in USD | % Change in LC | ||||||||
2016 | 2015 | ||||||||||
Leasing | $ | 335.3 | $ | 296.7 | 13% | 13% | |||||
Capital Markets & Hotels | 112.5 | 74.9 | 50% | 50% | |||||||
Property & Facility Management | 184.1 | 168.0 | 10% | 11% | |||||||
Property & Facility Management Fee Revenue1 | 142.2 | 117.5 | 21% | 21% | |||||||
Project & Development Services | 96.8 | 65.1 | 49% | 49% | |||||||
Project & Development Services Fee Revenue1 | 86.1 | 63.4 | 36% | 36% | |||||||
Advisory, Consulting and Other | 42.4 | 34.7 | 22% | 23% | |||||||
Total Revenue | $ | 771.1 | $ | 639.4 | 21% | 21% | |||||
Total Fee Revenue | $ | 718.5 | $ | 587.2 | 22% | 23% | |||||
n.m. - not meaningful as represented by a percentage change of greater than 100%, favorably or unfavorably. |
Americas Revenue ($ in millions, “LC” = local currency) | Nine Months Ended September 30, | % Change in USD | % Change in LC | ||||||||
2016 | 2015 | ||||||||||
Leasing | $ | 884.3 | $ | 790.5 | 12% | 12% | |||||
Capital Markets & Hotels | 282.3 | 226.1 | 25% | 25% | |||||||
Property & Facility Management | 528.8 | 499.8 | 6% | 9% | |||||||
Property & Facility Management Fee Revenue1 | 400.9 | 345.7 | 16% | 18% | |||||||
Project & Development Services | 243.0 | 180.4 | 35% | 36% | |||||||
Project & Development Services Fee Revenue1 | 226.1 | 176.5 | 28% | 29% | |||||||
Advisory, Consulting and Other | 109.1 | 94.3 | 16% | 17% | |||||||
Total Revenue | $ | 2,047.5 | $ | 1,791.1 | 14% | 16% | |||||
Total Fee Revenue | $ | 1,902.7 | $ | 1,633.1 | 17% | 17% | |||||
n.m. - not meaningful as represented by a percentage change of greater than 100%, favorably or unfavorably. | |||||||||||
Percentage variances in the Americas Performance Highlights below are calculated and presented on a local currency basis. |
• | Total revenue for the quarter was $771 million, a 21 percent increase compared with last year. Fee revenue for the quarter was $719 million, an increase of 23 percent from 2015. Fee revenue growth compared with last year was broad-based, reflecting both organic and acquisition-driven expansion led by double-digit growth in Leasing, Capital Markets & Hotels, Project & Development Services, and Property & Facility Management. |
• | Operating expenses for the quarter were $710 million, up 23 percent, from $582 million in 2015. Fee-based operating expenses for the quarter, excluding restructuring and acquisition charges, were $657 million, up 24 percent, from $530 million in 2015. |
• | Operating income for the quarter was $61 million, up from $57 million in 2015. Adjusted EBITDA was $81 million for the quarter, compared with $74 million in 2015, driven by the contribution of recent acquisitions and offset by continued investments in data, technology and people. Adjusted EBITDA margin, calculated on a fee-revenue basis, was 11.3 percent, compared with 12.5 percent in 2015. |
EMEA Revenue ($ in millions, “LC” = local currency) | Three Months Ended September 30, | % Change in USD | % Change in LC | ||||||||
2016 | 2015 | ||||||||||
Leasing | $ | 63.2 | $ | 72.4 | (13)% | (8)% | |||||
Capital Markets & Hotels | 87.4 | 110.9 | (21)% | (15)% | |||||||
Property & Facility Management | 161.7 | 75.0 | n.m. | n.m. | |||||||
Property & Facility Management Fee Revenue1 | 127.0 | 53.8 | n.m. | n.m. | |||||||
Project & Development Services | 154.1 | 133.6 | 15% | 22% | |||||||
Project & Development Services Fee Revenue1 | 42.6 | 40.7 | 5% | 9% | |||||||
Advisory, Consulting and Other | 56.3 | 55.1 | 2% | 11% | |||||||
Total Revenue | $ | 522.7 | $ | 447.0 | 17% | 28% | |||||
Total Fee Revenue | $ | 376.5 | $ | 332.9 | 13% | 24% | |||||
n.m. - not meaningful as represented by a percentage change of greater than 100%, favorably or unfavorably. |
EMEA Revenue ($ in millions, “LC” = local currency) | Nine Months Ended September 30, | % Change in USD | % Change in LC | ||||||||
2016 | 2015 | ||||||||||
Leasing | $ | 171.3 | $ | 185.9 | (8)% | (5)% | |||||
Capital Markets & Hotels | 245.4 | 299.2 | (18)% | (14)% | |||||||
Property & Facility Management | 314.0 | 219.6 | 43% | 58% | |||||||
Property & Facility Management Fee Revenue1 | 238.5 | 156.4 | 52% | 69% | |||||||
Project & Development Services | 478.0 | 324.1 | 47% | 53% | |||||||
Project & Development Services Fee Revenue1 | 146.2 | 111.3 | 31% | 35% | |||||||
Advisory, Consulting and Other | 164.7 | 160.2 | 3% | 8% | |||||||
Total Revenue | $ | 1,373.4 | $ | 1,189.0 | 16% | 22% | |||||
Total Fee Revenue | $ | 966.1 | $ | 913.0 | 6% | 12% | |||||
n.m. - not meaningful as represented by a percentage change of greater than 100%, favorably or unfavorably. | |||||||||||
Percentage variances in the EMEA Performance Highlights below are calculated and presented on a local currency basis. |
• | Total revenue for the quarter was $523 million, an increase of 28 percent from last year. Fee revenue for the quarter was $377 million, an increase of 24 percent from 2015. Fee revenue expansion compared with 2015 was most notable in Property & Facility Management, driven by the August 2016 acquisition of Integral UK Ltd. (“Integral”), partially offset by a decrease in leasing and capital markets activity in the UK. Fee revenue growth in the region was led by the UK, Germany, France and Poland. |
• | Operating expenses for the quarter were $520 million, up 36 percent from $421 million in 2015. Fee-based operating expenses for the quarter, excluding restructuring and acquisition charges, were $373 million, up 35 percent from $307 million in 2015, primarily reflecting the impact of the Integral acquisition. |
• | Operating income for the quarter was $3 million, down from $26 million in 2015. Adjusted EBITDA was $11 million for the quarter compared with $34 million in 2015. Adjusted EBITDA margin, calculated on a fee revenue basis, was 2.0 percent, compared with 10.2 percent in 2015. The decline in profitability was primarily driven by a decrease in capital markets and leasing volumes, UK capital markets performance fees earned in the third quarter of 2015 that did not recur in 2016 and additional contract expenses resulting from the wind down of operations in a non-core market. The decline in adjusted EBITDA margin also reflects the shift in service mix associated with the Integral acquisition. |
Asia Pacific Revenue ($ in millions, “LC” = local currency) | Three Months Ended September 30, | % Change in USD | % Change in LC | ||||||||
2016 | 2015 | ||||||||||
Leasing | $ | 50.2 | $ | 48.7 | 3% | 3% | |||||
Capital Markets & Hotels | 41.0 | 38.1 | 8% | 4% | |||||||
Property & Facility Management | 157.2 | 133.4 | 18% | 16% | |||||||
Property & Facility Management Fee Revenue1 | 114.4 | 97.5 | 17% | 14% | |||||||
Project & Development Services | 43.1 | 33.6 | 28% | 26% | |||||||
Project & Development Services Fee Revenue1 | 26.7 | 21.8 | 22% | 20% | |||||||
Advisory, Consulting and Other | 39.6 | 26.9 | 47% | 44% | |||||||
Total Revenue | $ | 331.1 | $ | 280.7 | 18% | 16% | |||||
Total Fee Revenue | $ | 271.9 | $ | 233.0 | 17% | 14% | |||||
n.m. - not meaningful as represented by a percentage change of greater than 100%, favorably or unfavorably. |
Asia Pacific Revenue ($ in millions, “LC” = local currency) | Nine Months Ended September 30, | % Change in USD | % Change in LC | ||||||||
2016 | 2015 | ||||||||||
Leasing | $ | 128.3 | $ | 126.9 | 1% | 3% | |||||
Capital Markets & Hotels | 102.9 | 99.4 | 4% | 3% | |||||||
Property & Facility Management | 456.4 | 391.6 | 17% | 18% | |||||||
Property & Facility Management Fee Revenue1 | 325.4 | 284.0 | 15% | 16% | |||||||
Project & Development Services | 122.4 | 99.0 | 24% | 26% | |||||||
Project & Development Services Fee Revenue1 | 70.0 | 60.6 | 16% | 18% | |||||||
Advisory, Consulting and Other | 106.9 | 81.1 | 32% | 34% | |||||||
Total Revenue | $ | 916.9 | $ | 798.0 | 15% | 17% | |||||
Total Fee Revenue | $ | 733.5 | $ | 652.0 | 13% | 14% | |||||
n.m. - not meaningful as represented by a percentage change of greater than 100%, favorably or unfavorably. | |||||||||||
Percentage variances in the Asia Pacific Performance Highlights below are calculated and presented on a local currency basis. |
• | Total revenue for the quarter was $331 million, an increase of 16 percent from last year. Fee revenue for the quarter was $272 million, an increase of 14 percent from 2015. Fee revenue growth compared with last year was driven by Property & Facility Management, Advisory, Consulting & Other, and Project & Development Services. Growth in the region was led by Japan, Australia and Greater China. |
• | Operating expenses for the quarter were $314 million, up 15 percent from $268 million in 2015. Fee-based operating expenses for the quarter, excluding restructuring and acquisition charges, were $255 million, up 13 percent from $220 million in 2015. |
• | Operating income for the quarter was $17 million, up from $13 million in 2015. Adjusted EBITDA was $21 million for the quarter compared with $17 million in 2015. Adjusted EBITDA margin, calculated on a fee-revenue basis, was 7.8 percent, compared with 7.2 percent in 2015. |
LaSalle Revenue ($ in millions, “LC” = local currency) | Three Months Ended September 30, | % Change in USD | % Change in LC | ||||||||
2016 | 2015 | ||||||||||
Advisory Fees | $ | 66.4 | $ | 60.7 | 9% | 12% | |||||
Transaction Fees & Other | 7.9 | 5.0 | 58% | 58% | |||||||
Incentive Fees | 6.0 | 68.5 | (91)% | (91)% | |||||||
Total Revenue | $ | 80.3 | $ | 134.2 | (40)% | (39)% | |||||
Equity Earnings | $ | 4.9 | 20.7 | (76)% | (78)% |
LaSalle Revenue ($ in millions, “LC” = local currency) | Nine Months Ended September 30, | % Change in USD | % Change in LC | ||||||||
2016 | 2015 | ||||||||||
Advisory Fees | $ | 195.0 | $ | 181.3 | 8% | 10% | |||||
Transaction Fees & Other | 40.8 | 19.5 | n.m. | n.m. | |||||||
Incentive Fees | 72.0 | 99.3 | (27)% | (30)% | |||||||
Total Revenue | $ | 307.8 | $ | 300.1 | 3% | 3% | |||||
Equity Earnings | $ | 26.5 | 57.6 | (54)% | (54)% | ||||||
n.m. - not meaningful as represented by a percentage change of greater than 100%, favorably or unfavorably. | |||||||||||
Percentage variances in the LaSalle Performance Highlights below are calculated and presented on a local currency basis. |
• | Total revenue for the quarter was $80 million, down 39 percent from last year, and included $66 million of advisory fees, $6 million of incentive fees and $8 million of transaction fees. |
• | Incentive fees, which are variable in timing and amount, declined compared with the prior year. For the nine months ended September 30, 2016, incentive fees were $72 million. |
• | Equity earnings for the quarter were $5 million, as compared with $21 million in the prior year. Activity in both periods was primarily driven by net valuation increases of assets within the co-investment portfolio. |
• | Operating expenses for the quarter were $72 million, down 20 percent from $92 million last year, reflecting changes to variable compensation to employees associated with the decreased incentive fee activity, partially offset by the impact of deferred compensation expense. Operating income for the quarter was $8 million, excluding equity earnings, a decrease from $42 million in 2015. |
• | Adjusted EBITDA was $14 million for the quarter compared with $63 million last year, reflecting the lower levels of incentive fees and other income along with equity earnings for the quarter. |
• | Capital raise was $1.0 billion for the quarter, bringing the total year to date to $4.8 billion. |
• | Assets under management were at a record high of $59.7 billion as of September 30, 2016, up from $59.1 billion as of June 30, 2016, and $56.4 billion as of December 31, 2015. The net increase in assets under management resulted from $2.2 billion of acquisitions and $1.0 billion of net valuation increases, partially offset by $1.7 billion of dispositions and withdrawals and $0.9 billion of foreign currency decreases. |
§ | United States callers: | +1 844 231 9804 |
§ | International callers: | +1 402 858 7998 |
§ | Pass code: | 94714141 |
1. | You must have a minimum 14.4 Kbps Internet connection |
2. |
3. | Download free Windows Media Player software: (link located under registration form) |
4. | If you experience problems listening, please call the Webcast Hotline +1 800 774 9473 and provide your Event ID (qr3ip3bc). |
§ | U.S. callers: | +1 855 859 2056 | or +1 800 585 8367 |
§ | International callers: | +1 404 537 3406 | |
§ | Pass code: | 94714141 |
JONES LANG LASALLE INCORPORATED | |||||||||||||||
Consolidated Statements of Operations | |||||||||||||||
(in millions, except share and per share data) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenue | $ | 1,705.2 | $ | 1,501.3 | $ | 4,645.6 | $ | 4,078.2 | |||||||
Operating expenses: | |||||||||||||||
Compensation and benefits | 1,012.0 | 896.0 | 2,750.4 | 2,459.1 | |||||||||||
Operating, administrative and other | 568.3 | 440.1 | 1,546.5 | 1,245.3 | |||||||||||
Depreciation and amortization | 35.9 | 26.7 | 98.5 | 77.1 | |||||||||||
Restructuring and acquisition charges5 | 18.0 | 18.2 | 35.9 | 20.8 | |||||||||||
Total operating expenses | 1,634.2 | 1,381.0 | 4,431.3 | 3,802.3 | |||||||||||
Operating income1 | 71.0 | 120.3 | 214.3 | 275.9 | |||||||||||
Interest expense, net of interest income | (12.4 | ) | (6.8 | ) | (32.2 | ) | (20.4 | ) | |||||||
Equity earnings from real estate ventures | 5.5 | 25.4 | 27.7 | 63.9 | |||||||||||
Other income | — | — | 13.3 | — | |||||||||||
Income before income taxes and noncontrolling interest | 64.1 | 138.9 | 223.1 | 319.4 | |||||||||||
Provision for income taxes | 15.9 | 25.7 | 55.3 | 71.5 | |||||||||||
Net income3 | 48.2 | 113.2 | 167.8 | 247.9 | |||||||||||
Net income attributable to noncontrolling interest | 0.2 | 2.7 | 15.1 | 5.2 | |||||||||||
Net income attributable to the company | $ | 48.0 | $ | 110.5 | $ | 152.7 | $ | 242.7 | |||||||
Net income attributable to common shareholders | $ | 48.0 | $ | 110.5 | $ | 152.5 | $ | 242.5 | |||||||
Basic earnings per common share | $ | 1.06 | $ | 2.45 | $ | 3.38 | $ | 5.40 | |||||||
Basic weighted average shares outstanding | 45,188 | 45,001 | 45,135 | 44,905 | |||||||||||
Diluted earnings per common share2 | $ | 1.05 | $ | 2.43 | $ | 3.35 | $ | 5.34 | |||||||
Diluted weighted average shares outstanding | 45,612 | 45,453 | 45,515 | 45,395 | |||||||||||
EBITDA attributable to common shareholders3 | $ | 112.2 | $ | 169.7 | $ | 338.5 | $ | 411.5 | |||||||
Please reference attached financial statement notes. |
JONES LANG LASALLE INCORPORATED | |||||||||||||||
Segment Operating Results | |||||||||||||||
(in millions) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
REAL ESTATE SERVICES | |||||||||||||||
AMERICAS | |||||||||||||||
Revenue | $ | 771.1 | $ | 639.4 | $ | 2,047.5 | $ | 1,791.0 | |||||||
Gross contract costs1 | (52.6 | ) | (52.2 | ) | (144.8 | ) | (158.0 | ) | |||||||
Total fee revenue | 718.5 | 587.2 | 1,902.7 | 1,633.0 | |||||||||||
Operating expenses: | |||||||||||||||
Compensation, operating and administrative expenses | 686.9 | 566.7 | 1,848.9 | 1,606.9 | |||||||||||
Depreciation and amortization | 22.9 | 15.6 | 60.2 | 46.5 | |||||||||||
Total segment operating expenses | 709.8 | 582.3 | 1,909.1 | 1,653.4 | |||||||||||
Gross contract costs1 | (52.6 | ) | (52.2 | ) | (144.8 | ) | (158.0 | ) | |||||||
Total fee-based segment operating expenses | 657.2 | 530.1 | 1,764.3 | 1,495.4 | |||||||||||
Segment operating income | $ | 61.3 | $ | 57.1 | $ | 138.4 | $ | 137.6 | |||||||
Equity earnings | 0.1 | 4.5 | 0.8 | 5.4 | |||||||||||
Total segment income | 61.4 | 61.6 | 139.2 | 143.0 | |||||||||||
Adjusted operating income | $ | 61.9 | $ | 58.6 | $ | 143.8 | $ | 142.0 | |||||||
Adjusted EBITDA | $ | 81.3 | $ | 73.5 | $ | 196.3 | $ | 184.0 | |||||||
EMEA | |||||||||||||||
Revenue | $ | 522.7 | $ | 447.0 | $ | 1,373.4 | $ | 1,189.1 | |||||||
Gross contract costs1 | (146.2 | ) | (114.1 | ) | (407.3 | ) | (276.0 | ) | |||||||
Total fee revenue | 376.5 | 332.9 | 966.1 | 913.1 | |||||||||||
Operating expenses: | |||||||||||||||
Compensation, operating and administrative expenses | 511.6 | 413.8 | 1,338.4 | 1,116.0 | |||||||||||
Depreciation and amortization | 8.0 | 6.8 | 23.8 | 18.1 | |||||||||||
Total segment operating expenses | 519.6 | 420.6 | 1,362.2 | 1,134.1 | |||||||||||
Gross contract costs1 | (146.2 | ) | (114.1 | ) | (407.3 | ) | (276.0 | ) | |||||||
Total fee-based segment operating expenses | 373.4 | 306.5 | 954.9 | 858.1 | |||||||||||
Segment operating income | $ | 3.1 | $ | 26.4 | $ | 11.2 | $ | 55.0 | |||||||
Equity (losses) income | — | — | (0.1 | ) | 0.7 | ||||||||||
Total segment income | 3.1 | 26.4 | 11.1 | 55.7 | |||||||||||
Adjusted operating income | $ | 6.1 | $ | 27.5 | $ | 18.2 | $ | 57.3 | |||||||
Adjusted EBITDA | $ | 10.9 | $ | 34.0 | $ | 34.7 | $ | 74.2 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
ASIA PACIFIC | |||||||||||||||
Revenue | $ | 331.1 | $ | 280.7 | $ | 916.9 | $ | 798.0 | |||||||
Gross contract costs1 | (59.2 | ) | (47.7 | ) | (183.4 | ) | (146.0 | ) | |||||||
Total fee revenue | 271.9 | 233.0 | 733.5 | 652.0 | |||||||||||
Operating expenses: | |||||||||||||||
Compensation, operating and administrative expenses | 310.2 | 264.3 | 871.6 | 753.7 | |||||||||||
Depreciation and amortization | 4.2 | 3.7 | 12.4 | 10.9 | |||||||||||
Total segment operating expenses | 314.4 | 268.0 | 884.0 | 764.6 | |||||||||||
Gross contract costs1 | (59.2 | ) | (47.7 | ) | (183.4 | ) | (146.0 | ) | |||||||
Total fee-based segment operating expenses | 255.2 | 220.3 | 700.6 | 618.6 | |||||||||||
Segment operating income | $ | 16.7 | $ | 12.7 | $ | 32.9 | $ | 33.4 | |||||||
Equity earnings | 0.5 | 0.2 | 0.5 | 0.2 | |||||||||||
Total segment income | 17.2 | 12.9 | 33.4 | 33.6 | |||||||||||
Adjusted operating income | $ | 17.3 | $ | 12.8 | $ | 36.2 | $ | 33.6 | |||||||
Adjusted EBITDA | $ | 21.4 | $ | 16.7 | $ | 45.8 | $ | 44.4 | |||||||
LASALLE INVESTMENT MANAGEMENT | |||||||||||||||
Revenue | $ | 80.3 | $ | 134.2 | $ | 307.8 | $ | 300.1 | |||||||
Operating expenses: | |||||||||||||||
Compensation, operating and administrative expenses | 71.6 | 91.5 | 238.0 | 227.8 | |||||||||||
Depreciation and amortization | 0.8 | 0.5 | 2.1 | 1.6 | |||||||||||
Total segment operating expenses | 72.4 | 92.0 | 240.1 | 229.4 | |||||||||||
Segment operating income | $ | 7.9 | $ | 42.2 | $ | 67.7 | $ | 70.7 | |||||||
Equity earnings | 4.9 | 20.7 | 26.5 | 57.6 | |||||||||||
Total segment income | 12.8 | 62.9 | 94.2 | 128.3 | |||||||||||
Adjusted operating income | $ | 7.9 | $ | 42.2 | $ | 67.7 | $ | 70.8 | |||||||
Adjusted EBITDA | $ | 13.7 | $ | 63.5 | $ | 95.4 | $ | 129.9 | |||||||
SEGMENT RECONCILING ITEMS | |||||||||||||||
Total revenue | $ | 1,705.2 | $ | 1,501.3 | $ | 4,645.6 | $ | 4,078.2 | |||||||
Total segment operating expenses before restructuring and acquisition charges | $ | 1,616.2 | $ | 1,362.8 | $ | 4,395.4 | $ | 3,781.5 | |||||||
Total segment operating income | $ | 89.0 | $ | 138.5 | $ | 250.2 | $ | 296.7 | |||||||
Restructuring and acquisition charges5 | 18.0 | 18.2 | 35.9 | 20.8 | |||||||||||
Operating income | $ | 71.0 | $ | 120.3 | $ | 214.3 | $ | 275.9 | |||||||
Please reference attached financial statement notes. |
JONES LANG LASALLE INCORPORATED | ||||||||||
Consolidated Balance Sheets | ||||||||||
(in millions, except share and per share data) | ||||||||||
(Unaudited) | ||||||||||
September 30, | December 31, | |||||||||
2016 | 2015 | |||||||||
ASSETS | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 228.4 | $ | 216.6 | ||||||
Trade receivables, net of allowances | 1,702.0 | 1,591.7 | ||||||||
Notes and other receivables | 317.8 | 267.3 | ||||||||
Warehouse receivables | 326.4 | 265.2 | ||||||||
Prepaid expenses | 91.3 | 77.8 | ||||||||
Deferred tax assets, net | — | 132.9 | ||||||||
Other | 152.4 | 99.3 | ||||||||
Total current assets | 2,818.3 | 2,650.8 | ||||||||
Property and equipment, net of accumulated depreciation | 468.7 | 423.3 | ||||||||
Goodwill, with indefinite useful lives | 2,546.8 | 2,141.5 | ||||||||
Identified intangibles, net of accumulated amortization | 299.5 | 227.2 | ||||||||
Investments in real estate ventures | 359.9 | 311.5 | ||||||||
Long-term receivables | 181.8 | 135.2 | ||||||||
Deferred tax assets, net | 183.7 | 87.2 | ||||||||
Deferred compensation plans | 168.7 | 134.3 | ||||||||
Other | 89.2 | 76.1 | ||||||||
Total assets | $ | 7,116.6 | $ | 6,187.1 | ||||||
LIABILITIES AND EQUITY | ||||||||||
Current liabilities: | ||||||||||
Accounts payable and accrued liabilities | $ | 763.6 | $ | 712.6 | ||||||
Accrued compensation | 774.9 | 1,088.9 | ||||||||
Short-term borrowings | 55.7 | 49.2 | ||||||||
Deferred tax liabilities, net | — | 21.1 | ||||||||
Deferred income | 150.6 | 114.8 | ||||||||
Deferred business acquisition obligations | 27.8 | 54.7 | ||||||||
Warehouse facility | 322.3 | 263.1 | ||||||||
Other | 201.9 | 200.8 | ||||||||
Total current liabilities | 2,296.8 | 2,505.2 | ||||||||
Noncurrent liabilities: | ||||||||||
Credit facility, net of debt issuance costs | 1,084.3 | 239.6 | ||||||||
Long-term senior notes, net of debt issuance costs | 272.6 | 272.3 | ||||||||
Deferred tax liabilities, net | 37.4 | 33.0 | ||||||||
Deferred compensation | 191.9 | 156.2 | ||||||||
Deferred business acquisition obligations | 69.1 | 42.9 | ||||||||
Other | 309.6 | 208.5 | ||||||||
Total liabilities | 4,261.7 | 3,457.7 |
September 30, | December 31, | |||||||||
2016 | 2015 | |||||||||
Redeemable noncontrolling interest | $ | 7.4 | $ | 11.1 | ||||||
Company shareholders' equity: | ||||||||||
Common stock, $.01 par value per share,100,000,000 shares authorized; 45,200,670 and 45,049,503 shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively | 0.5 | 0.5 | ||||||||
Additional paid-in capital | 1,007.9 | 986.6 | ||||||||
Retained earnings | 2,182.7 | 2,044.2 | ||||||||
Shares held in trust | (6.1 | ) | (6.2 | ) | ||||||
Accumulated other comprehensive loss | (387.2 | ) | (336.3 | ) | ||||||
Total company shareholders' equity | 2,797.8 | 2,688.8 | ||||||||
Noncontrolling interest | 49.7 | 29.5 | ||||||||
Total equity | 2,847.5 | 2,718.3 | ||||||||
Total liabilities and equity | $ | 7,116.6 | $ | 6,187.1 | ||||||
Please reference attached financial statement notes. |
Nine Months Ended | |||||||
September 30, | |||||||
2016 | 2015 | ||||||
Cash used in operating activities | $ | (151.9 | ) | $ | (18.2 | ) | |
Cash used in investing activities | (617.4 | ) | (184.5 | ) | |||
Cash provided by financing activities | 779.3 | 160.2 | |||||
Effect of currency exchange rate changes on cash and cash equivalents | 1.8 | (14.4 | ) | ||||
Net increase (decrease) in cash and cash equivalents | $ | 11.8 | $ | (56.9 | ) | ||
Cash and cash equivalents, beginning of period | 216.6 | 250.4 | |||||
Cash and cash equivalents, end of period | $ | 228.4 | $ | 193.5 | |||
Please reference attached financial statement notes. |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
($ in millions) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenue | $ | 1,705.2 | $ | 1,501.3 | $ | 4,645.6 | $ | 4,078.2 | ||||||||
Gross contract costs | (258.0 | ) | (214.0 | ) | (735.5 | ) | (580.0 | ) | ||||||||
Fee revenue | 1,447.2 | 1,287.3 | 3,910.1 | 3,498.2 | ||||||||||||
Operating expenses | 1,634.2 | 1,381.0 | 4,431.3 | 3,802.3 | ||||||||||||
Gross contract costs | (258.0 | ) | (214.0 | ) | (735.5 | ) | (580.0 | ) | ||||||||
Fee-based operating expenses | $ | 1,376.2 | $ | 1,167.0 | $ | 3,695.8 | $ | 3,222.3 | ||||||||
Operating income | $ | 71.0 | $ | 120.3 | $ | 214.3 | $ | 275.9 | ||||||||
Add: | ||||||||||||||||
Restructuring and acquisition charges5 | $ | 18.0 | $ | 18.2 | $ | 35.9 | $ | 20.8 | ||||||||
MSRs - net non-cash activity | (2.9 | ) | — | (2.3 | ) | — | ||||||||||
Amortization of acquisition-related intangibles | 7.1 | 2.7 | 16.0 | 7.0 | ||||||||||||
Adjusted operating income | $ | 93.2 | $ | 141.2 | $ | 263.9 | $ | 303.7 |
2. | Net Restructuring and acquisition charges, MSRs - net non-cash activity, and amortization of acquisition-related intangibles are excluded from GAAP net income attributable to common shareholders to arrive at the company’s definition of adjusted net income used in the calculation of adjusted diluted earnings per share. |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
(In millions, except share and per share data) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
GAAP net income attributable to common shareholders | $ | 48.0 | $ | 110.5 | $ | 152.5 | $ | 242.5 | ||||||||
Shares (in 000s) | 45,612 | 45,453 | 45,515 | 45,395 | ||||||||||||
GAAP diluted earnings per share | $ | 1.05 | $ | 2.43 | $ | 3.35 | $ | 5.34 | ||||||||
GAAP net income attributable to common shareholders | $ | 48.0 | $ | 110.5 | $ | 152.5 | $ | 242.5 | ||||||||
Restructuring and acquisition charges5 after tax benefit of $(4.5), $(1.3), $(8.9), and $(2.0) | 13.5 | 3.9 | 27.0 | 5.9 | ||||||||||||
MSRs - net non-cash activity after tax expense of $0.8, $-, $0.6, and $- | (2.1 | ) | — | (1.7 | ) | — | ||||||||||
Acquisition-related intangible amortization after tax benefit of $(1.8), $(0.7), $(4.0), and $(1.8) | 5.3 | 2.0 | 12.0 | 5.2 | ||||||||||||
Adjusted net income | $ | 64.7 | $ | 116.4 | $ | 189.8 | $ | 253.6 | ||||||||
Shares (in 000s) | 45,612 | 45,453 | 45,515 | 45,395 | ||||||||||||
Adjusted diluted earnings per share | $ | 1.42 | $ | 2.56 | $ | 4.17 | $ | 5.59 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
($ in millions) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
GAAP net income attributable to common shareholders | $ | 48.0 | $ | 110.5 | $ | 152.5 | $ | 242.5 | ||||||||
Add: | ||||||||||||||||
Interest expense, net of interest income | 12.4 | 6.8 | 32.2 | 20.4 | ||||||||||||
Provision for income taxes | 15.9 | 25.7 | 55.3 | 71.5 | ||||||||||||
Depreciation and amortization | 35.9 | 26.7 | 98.5 | 77.1 | ||||||||||||
EBITDA | $ | 112.2 | $ | 169.7 | $ | 338.5 | $ | 411.5 | ||||||||
Add: | ||||||||||||||||
Restructuring and acquisition charges | 18.0 | 18.2 | 35.9 | 20.8 | ||||||||||||
MSRs - net non-cash activity | (2.9 | ) | — | (2.3 | ) | — | ||||||||||
Adjusted EBITDA | $ | 127.3 | $ | 187.9 | $ | 372.1 | $ | 432.3 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
($ in millions) | 2016 | % Change | 2016 | % Change | |||||||||
Revenue: | |||||||||||||
At current period exchange rates | $ | 1,705.2 | 14 | % | $ | 4,645.6 | 14 | % | |||||
Impact of change in exchange rates | 48.6 | n/a | 112.1 | n/a | |||||||||
At comparative period exchange rates | $ | 1,753.8 | 17 | % | $ | 4,757.7 | 17 | % | |||||
Fee Revenue: | |||||||||||||
At current period exchange rates | $ | 1,447.2 | 12 | % | $ | 3,910.1 | 12 | % | |||||
Impact of change in exchange rates | 34.1 | n/a | 77.8 | n/a | |||||||||
At comparative period exchange rates | $ | 1,481.3 | 15 | % | $ | 3,987.9 | 14 | % | |||||
Operating Income: | |||||||||||||
At current period exchange rates | $ | 71.0 | (41 | )% | $ | 214.3 | (22 | )% | |||||
Impact of change in exchange rates | (3.5 | ) | n/a | (9.8 | ) | n/a | |||||||
At comparative period exchange rates | $ | 67.5 | (44 | )% | $ | 204.5 | (26 | )% | |||||
Adjusted EBITDA: | |||||||||||||
At current period exchange rates | $ | 127.3 | (32 | )% | $ | 372.1 | (14 | )% | |||||
Impact of change in exchange rates | (3.2 | ) | n/a | (8.0 | ) | n/a | |||||||
At comparative period exchange rates | $ | 124.1 | (34 | )% | $ | 364.1 | (16 | )% |
5. | Restructuring and acquisition charges are excluded from our measure of segment operating results, although they are included for consolidated reporting. For purposes of segment operating results, the allocation of restructuring and acquisition charges to the segments is not believed to be meaningful to investors. Accordingly, the performance of segment results has been evaluated without allocation of these charges. |
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, 2015 | September 30, 2015 | |||||||||||||||||||
($ in millions) | GAAP | Adjusting Item | Adjusted | GAAP | Adjusting Item | Adjusted | ||||||||||||||
Income before income taxes and noncontrolling interest | $ | 138.9 | $ | 12.8 | $ | 151.7 | $ | 319.4 | $ | 12.8 | $ | 332.2 | ||||||||
Provision for income taxes | 25.7 | 12.8 | 38.5 | 71.5 | 12.8 | 84.3 | ||||||||||||||
Net Income | $ | 113.2 | $ | 113.2 | $ | 247.9 | $ | 247.9 |
9. | Certain prior-year amounts have been reclassified to conform to the current presentation. The company adopted ASU 2015-03, Interest - Imputation of Interest (ASU 2015-03), and therefore ASU 2015-15, effective January 1, 2016, as a change in accounting principle. As retrospective application is required, the comparative balance sheet information has been adjusted; debt issuance costs of $18.1 million as of December 31, 2015, have been reclassified from Other assets to Credit facility ($15.4 million) and Long-term senior notes ($2.7 million). The adoption of ASU 2015-03 had no impact on our unaudited condensed consolidated statements of comprehensive income or cash flows. |
10. | As of September 30, 2016, LaSalle had $59.7 billion of real estate assets under management with approximately $8 billion available for investment (“dry powder”) contemplating committed capital and available borrowing capacity at traditional leverage levels. Assets under management were composed of $30.5 billion invested in separate accounts, $13.9 billion invested in fund management vehicles, and $15.3 billion invested in public securities. The geographic distribution of separate accounts and fund management investments was $16.5 billion in the UK, $16.0 billion in North America, $7.7 billion in Asia Pacific, and $4.2 billion in continental Europe. |
Contact: | Christie B. Kelly |
Title: | Global Chief Financial Officer |
Phone: | +1 312 228 2316 |
.+Q4$Y6;:6S:[H\%\*_L7_$[XJ:M)K'B&]M--%[ M)YMQ>7ER+B9R>20J$@GZD"M;XJ?\$UO%45J)O!_BFTU9%0>98Z@AMG9@.=KC M(/T;'UHHKLH9;AW#F:NWUN>'F'&&;?6'1A-1A'3E2LK+\?Q*/P/^./Q%_8_N MHO"OQ*TN2[\%^8$B>*ZBFEL^),^%/A/#)>ZI M Q17#4Q%2G%T8O2]O,^AR_*\'C*_UVM33D MDY6^RVNZ/'? ?[!OC[QO=K?>(M1L]$MIGWRRR3?:KA\G).%.,GGDM^=?8?P; M_9:\$?!@1W6G61U#6@,-JE[\\OOL'1!_N\^I-%%>KA,#0I)34;ONSXK.N)LS MS"4J%2IRTUIRQT1[&J[12T45ZI\2%%%% !1110 4444 %%%% !1110 4444 M%%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4 &444 ?__9 end