Attached files
| file | filename |
|---|---|
| EX-99.2 - SUPPLEMENTAL INFORMATION - JONES LANG LASALLE INC | jllsupplementalslidesq12.htm |
| 8-K - 8-K - JONES LANG LASALLE INC | q12015earningrelease-form8k.htm |
Exhibit 99.1
JLL Reports Record First-Quarter 2015 Adjusted Earnings Per Share of $0.94
First-quarter fee revenue of $1.0 billion, up 25 percent in local currency and 17 percent in U.S. dollars
CHICAGO, April 27, 2015 - Jones Lang LaSalle Incorporated (NYSE: JLL) today reported adjusted earnings per share of $0.94, up from $0.38 in the prior year. First-quarter fee revenue totaled $1.0 billion, up 25 percent from the first quarter of 2014. All percentage variances are calculated on a local currency basis.
• | Strong first quarter fee revenue growth across all service lines and geographic segments |
• | Margins expanded in all segments |
• | New wins and healthy pipelines continue to drive Corporate Solutions momentum |
• | LaSalle Investment Management raised $2.0 billion of equity commitments for the quarter and continued outstanding investment performance |
• | Dividend increased 8 percent to $0.27 per share |
Summary Financial Results ($ in millions, except per share data) | Three Months Ended | ||||||
March 31, | |||||||
2015 | 2014 | ||||||
Revenue | $ | 1,204 | $ | 1,037 | |||
Fee Revenue1 | $ | 1,029 | $ | 878 | |||
Adjusted Net Income2 | $ | 43 | $ | 17 | |||
U.S. GAAP Net Income2 | $ | 42 | $ | 16 | |||
Adjusted Earnings per Share2 | $ | 0.94 | $ | 0.38 | |||
Earnings per Share | $ | 0.92 | $ | 0.35 | |||
Adjusted EBITDA3 | $ | 90 | $ | 52 | |||
Adjusted EBITDA, Real Estate Services | $ | 62 | $ | 35 | |||
Adjusted EBITDA, LaSalle Investment Management | $ | 28 | $ | 17 | |||
See Financial Statement Notes (1), (2) and (3) following the Financial Statements in this news release | |||||||
CEO Comment:
"We completed an excellent first quarter, building on last year's momentum with strong revenue growth across all service lines and geographies, and margin expansion in all segments," said Colin Dyer, President and CEO of JLL. "Corporate Solutions continued to win new business and build healthy pipelines, while LaSalle Investment Management started the year with strong capital raising and investment activity," Dyer added.
JLL Reports First-Quarter 2015 Results - Page 2
Consolidated Revenue ($ in millions, “LC” = local currency) | Three Months Ended March 31, | % Change in USD | % Change in LC | |||||||
2015 | 2014 | |||||||||
Real Estate Services (“RES”) | ||||||||||
Leasing | $ | 306.1 | $ | 269.2 | 14% | 17% | ||||
Capital Markets & Hotels | 177.4 | 117.4 | 51% | 64% | ||||||
Property & Facility Management Fee Revenue1 | 259.8 | 247.2 | 5% | 12% | ||||||
Property & Facility Management | 372.7 | 344.8 | 8% | 15% | ||||||
Project & Development Services Fee Revenue1 | 101.2 | 87.4 | 16% | 24% | ||||||
Project & Development Services | 162.7 | 149.4 | 9% | 22% | ||||||
Advisory, Consulting and Other | 98.9 | 92.8 | 7% | 15% | ||||||
Total RES Fee Revenue1 | $ | 943.4 | $ | 814.0 | 16% | 23% | ||||
Total RES Revenue | $ | 1,117.8 | $ | 973.6 | 15% | 23% | ||||
LaSalle Investment Management ("LaSalle") | ||||||||||
Advisory Fees | $ | 60.7 | $ | 55.9 | 9% | 17% | ||||
Transaction Fees & Other | 6.1 | 4.6 | 33% | 45% | ||||||
Incentive Fees | 18.9 | 3.3 | n.m. | n.m. | ||||||
Total LaSalle Revenue | $ | 85.7 | $ | 63.8 | 34% | 45% | ||||
Total Firm Fee Revenue1 | $ | 1,029.1 | $ | 877.8 | 17% | 25% | ||||
Total Firm Revenue | $ | 1,203.5 | $ | 1,037.4 | 16% | 24% | ||||
n.m. - not meaningful | ||||||||||
Consolidated Performance Highlights:
• | Consolidated fee revenue for the first quarter was $1.0 billion, up 25 percent from 2014. Growth was broad-based, led by Capital Markets, up $60 million or 64 percent, and Leasing, up $37 million or 17 percent. |
• | Consolidated fee-based operating expenses, excluding restructuring and acquisition charges, were $975 million for the first quarter, compared with $857 million last year, an increase of 21 percent. |
• | LaSalle Investment Management's advisory fees grew 17 percent to $61 million and incentive fees were $19 million, contributing to a total revenue increase of 45 percent. LaSalle continued to successfully raise and deploy capital with $2.0 billion in equity raised in the first quarter. |
• | Adjusted EBITDA margin calculated on a fee revenue basis was 8.7 percent for the first quarter, compared with 5.9 percent last year. |
• | Adjusted earnings per share of $0.94 represents record first-quarter earnings, despite a negative foreign exchange impact of approximately $0.07 compared with a year ago. |
JLL Reports First-Quarter 2015 Results - Page 3
Balance Sheet, Net Interest Expense and Dividend:
• | In February, the firm announced that it had increased and extended its bank credit facility. The capacity of the facility increased to $2.0 billion from $1.2 billion, and the maturity was extended to February 2020. |
• | The firm's total net debt was $546 million at quarter end, a decrease of $185 million from the first quarter last year as the firm's strong cash generation continued. |
• | Net interest expense for the first quarter was $6.0 million, down from $6.6 million in the first quarter of 2014. The firm continues to benefit from both lower cost of debt and lower average borrowing. |
• | Reflecting confidence in the firm's cash generation, the Board of Directors declared a semi-annual dividend of $0.27 per share, an 8 percent increase from the $0.25 per share payment made in December 2014. The dividend payment will be made on June 15, 2015, to shareholders of record at the close of business on May 15, 2015. |
JLL Reports First-Quarter 2015 Results - Page 4
Business Segment Performance Highlights
Americas Real Estate Services
Americas Revenue ($ in millions, “LC” = local currency) | Three Months Ended March 31, | % Change in USD | % Change in LC | |||||||
2015 | 2014 | |||||||||
Leasing | $ | 229.3 | $ | 187.7 | 22% | 23% | ||||
Capital Markets & Hotels | 74.8 | 41.1 | 82% | 83% | ||||||
Property & Facility Management Fee Revenue1 | 114.2 | 106.2 | 8% | 10% | ||||||
Property & Facility Management | 166.4 | 146.2 | 14% | 18% | ||||||
Project & Development Services Fee Revenue1 | 52.7 | 44.6 | 18% | 21% | ||||||
Project & Development Services | 53.4 | 45.4 | 18% | 20% | ||||||
Advisory, Consulting and Other | 30.3 | 26.7 | 13% | 14% | ||||||
Operating Revenue | $ | 501.3 | $ | 406.3 | 23% | 25% | ||||
Equity Earnings | 0.3 | 0.2 | 50% | 48% | ||||||
Total Segment Fee Revenue1 | $ | 501.6 | $ | 406.5 | 23% | 25% | ||||
Total Segment Revenue | $ | 554.5 | $ | 447.3 | 24% | 26% | ||||
Americas Performance Highlights:
• | Fee revenue for the quarter was $502 million, an increase of 25 percent from 2014. Revenue growth was broad-based, with Leasing up 23 percent, Capital Markets & Hotels up 83 percent, Property & Facility Management up 10 percent, and Project & Development Services up 21 percent, compared with last year. |
• | Fee-based operating expenses, excluding restructuring and acquisition charges, were $466 million for the quarter, up 21 percent from last year. |
• | Operating income was $35 million for the quarter, compared with $17 million in 2014. |
• | Adjusted EBITDA was $51 million for the quarter, compared with $30 million last year. Adjusted EBITDA margin calculated on a fee revenue basis was 10.2 percent, compared with 7.5 percent in 2014. |
JLL Reports First-Quarter 2015 Results - Page 5
EMEA Real Estate Services
EMEA Revenue ($ in millions, “LC” = local currency) | Three Months Ended March 31, | % Change in USD | % Change in LC | |||||||
2015 | 2014 | |||||||||
Leasing | $ | 48.4 | $ | 54.1 | (11)% | 4% | ||||
Capital Markets & Hotels | 75.2 | 54.5 | 38% | 59% | ||||||
Property & Facility Management Fee Revenue1 | 51.6 | 52.1 | (1)% | 14% | ||||||
Property & Facility Management | 74.8 | 76.5 | (2)% | 11% | ||||||
Project & Development Services Fee Revenue1 | 31.2 | 28.7 | 9% | 27% | ||||||
Project & Development Services | 79.9 | 82.1 | (3)% | 17% | ||||||
Advisory, Consulting and Other | 47.5 | 44.6 | 7% | 20% | ||||||
Operating Revenue | $ | 253.9 | $ | 234.0 | 9% | 25% | ||||
Equity Losses | (0.4 | ) | — | n.m. | n.m. | |||||
Total Segment Fee Revenue1 | $ | 253.5 | $ | 234.0 | 8% | 25% | ||||
Total Segment Revenue | $ | 325.4 | $ | 311.8 | 4% | 21% | ||||
n.m. - not meaningful | ||||||||||
EMEA Performance Highlights:
• | EMEA's fee revenue performance during the first quarter was significantly higher in local currencies than in U.S. dollars due to the U.S. dollar exhibiting significantly more strength against European currencies in 2015 compared with 2014. Since revenue and expenses are generally incurred in the same currencies, the operating income and EBITDA impacts are modest relative to the revenue impact. |
• | Fee revenue for the quarter was $254 million, an increase of 25 percent from 2014. Revenue growth was driven by Capital Markets & Hotels, up 59 percent, and Property & Facility Management up 14 percent, compared with last year. Growth in the region for the year was broad-based, led by the UK, Germany and France. |
• | Fee-based operating expenses, excluding restructuring and acquisition charges, were $256 million for the quarter, compared with $239 million last year. |
• | Operating loss was $3 million for the quarter, compared with a loss of $5 million in 2014. |
• | Adjusted EBITDA was $2 million for the quarter, compared with $1 million last year. Adjusted EBITDA margin calculated on a fee revenue basis was 0.9 percent for the quarter, compared with 0.2 percent in 2014. |
JLL Reports First-Quarter 2015 Results - Page 6
Asia Pacific Real Estate Services
Asia Pacific Revenue ($ in millions, “LC” = local currency) | Three Months Ended March 31, | % Change in USD | % Change in LC | |||||||
2015 | 2014 | |||||||||
Leasing | $ | 28.4 | $ | 27.4 | 4% | 9% | ||||
Capital Markets & Hotels | 27.4 | 21.8 | 26% | 38% | ||||||
Property & Facility Management Fee Revenue1 | 94.0 | 88.9 | 6% | 13% | ||||||
Property & Facility Management | 131.5 | 122.1 | 8% | 14% | ||||||
Project & Development Services Fee Revenue1 | 17.3 | 14.1 | 23% | 31% | ||||||
Project & Development Services | 29.4 | 21.9 | 34% | 42% | ||||||
Advisory, Consulting and Other | 21.1 | 21.5 | (2)% | 5% | ||||||
Operating Revenue | $ | 188.2 | $ | 173.7 | 8% | 16% | ||||
Equity Losses | (0.1 | ) | (0.1 | ) | —% | (29)% | ||||
Total Segment Fee Revenue1 | $ | 188.1 | $ | 173.6 | 8% | 16% | ||||
Total Segment Revenue | $ | 237.7 | $ | 214.6 | 11% | 18% | ||||
Asia Pacific Performance Highlights:
• | Fee revenue for the quarter was $188 million, an increase of 16 percent from 2014. Revenue growth was driven by Capital Markets & Hotels, up 38 percent, and Property & Facility Management, up 13 percent, compared with last year. Growth was led by Japan, Australia and India geographically, but also was broad-based across the region's Property & Facility Management business. |
• | Fee-based operating expenses, excluding restructuring and acquisition charges, were $184 million for the quarter, compared with $173 million last year, an increase of 13 percent. |
• | Operating income was $4 million for the quarter, compared with $1 million in 2014. |
• | Adjusted EBITDA was $8 million for the quarter, compared with $4 million last year. Adjusted EBITDA margin calculated on a fee revenue basis was 4.3 percent for the quarter, compared with 2.5 percent in 2014. |
JLL Reports First-Quarter 2015 Results - Page 7
LaSalle Investment Management
LaSalle Investment Management Revenue ($ in millions, “LC” = local currency) | Three Months Ended March 31, | % Change in USD | % Change in LC | |||||||
2015 | 2014 | |||||||||
Advisory Fees | $ | 60.7 | $ | 55.9 | 9% | 17% | ||||
Transaction Fees & Other | 6.1 | 4.6 | 33% | 45% | ||||||
Incentive Fees | 18.9 | 3.3 | n.m. | n.m. | ||||||
Operating Revenue | $ | 85.7 | $ | 63.8 | 34% | 45% | ||||
Equity Earnings | 11.5 | 8.8 | 31% | 34% | ||||||
Total Segment Revenue | $ | 97.2 | $ | 72.6 | 34% | 43% | ||||
n.m. - not meaningful | ||||||||||
LaSalle Investment Management Performance Highlights:
• | Advisory fees were $61 million for the quarter, up 17 percent from last year. Total segment revenue was $97 million for the quarter, compared with $73 million last year. This included $6 million of transaction fees and other income, $19 million of incentive fees and $12 million of equity earnings. |
• | Operating expenses were $69 million for the quarter, compared with $56 million last year. |
• | Operating income was $28 million for the quarter, compared with $16 million last year. Adjusted EBITDA was $28 million for the quarter, compared with $17 million last year. Adjusted EBITDA margin was 29.2 percent, compared with 23.2 percent in 2014. |
• | Capital raise was $2.0 billion for the quarter. |
• | Assets under management were $55.3 billion as of March 31, 2015, up from $53.6 billion at December 31, 2014. The net increase in assets under management resulted from $3.9 billion of acquisitions and takeovers, $2.6 billion of dispositions and withdrawals, $1.6 billion of net valuation increases and $1.2 billion of net foreign currency decreases. |
JLL Reports First-Quarter 2015 Results - Page 8
About JLL
JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual fee revenue of $4.7 billion and gross revenue of $5.4 billion, JLL has more than 230 corporate offices, operates in more than 80 countries and has a global workforce of approximately 58,000. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3.4 billion square feet, or 316 million square meters, and completed $118 billion in sales, acquisitions and finance transactions in 2014. Its investment management business, LaSalle Investment Management, has $55.3 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.
200 East Randolph Drive Chicago Illinois 60601 │ 30 Warwick Street London W1B 5NH │ 9 Raffles Place #39-00 Republic Plaza Singapore 048619
Cautionary Note Regarding Forward-Looking Statements
Statements in this news 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 and dividend payments of JLL to be materially different from those expressed or implied by such forward-looking statements. For additional information concerning risks, uncertainties and other factors that could cause actual results to differ materially from those anticipated in forward-looking statements, and risks to JLL’s business in general, please refer to those factors 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 JLL’s Annual Report on Form 10-K for the year ended December 31, 2014, 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. Any forward-looking statements speak only as of the date of this release, and except to the extent required by applicable securities laws, JLL expressly disclaims any obligation or undertaking to publicly update or revise any forward-looking statements contained herein to reflect any change in JLL’s expectations or results, or any change in events.
JLL Reports First-Quarter 2015 Results - Page 9
Conference Call
Management will conduct a conference call with shareholders, analysts and investment professionals on Tuesday, April 28, 2015 at 9:00 a.m. EDT.
If you would like to participate in the teleconference, please dial into one of the following phone numbers five to ten minutes before the start time (the passcode will also be required):
∙ | U.S. callers: | +1 877 800 0896 |
∙ | International callers: | +1 706 679 7364 |
∙ | Passcode: | 24082845 |
Webcast
We are also offering a live webcast. Follow these steps to participate:
1. | You must have a minimum 14.4 Kbps Internet connection |
2. | Log on to https://www.webcaster4.com/Webcast/Page/609/8228 |
3. | Download free Windows Media Player software: (link located under registration form) |
4. | If you experience problems listening, please call the Webcast Hotline +1 877 863 2113 and provide your Event ID (102082). |
Supplemental Information
Supplemental information regarding the first-quarter 2015 earnings call has been posted to the Investor Relations section of the company's website: www.jll.com.
Conference Call Replay
Available: 10:00 p.m. EDT Tuesday, April 28, 2015 through 11:59 p.m. EDT Friday, May 29, 2015 at the following numbers:
∙ | U.S. callers: | +1 855 859 2056 | or + 1 800 585 8367 |
∙ | International callers: | +1 404 537 3406 | |
∙ | Passcode: | 24082845 | |
Web Audio Replay
An audio replay will be available for download or stream. Information and the link can be found on the company’s website: www.jll.com.
If you have any questions, please contact JLL’s Investor Relations department at: JLLInvestorRelations@am.jll.com.
###
JONES LANG LASALLE INCORPORATED | |||||||
Consolidated Statements of Operations | |||||||
For the Three Months Ended March 31, 2015 and 2014 | |||||||
(in thousands, except share data) | |||||||
(Unaudited) | |||||||
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Revenue | $ | 1,203,511 | $ | 1,037,442 | |||
Operating expenses: | |||||||
Compensation and benefits | 737,917 | 637,340 | |||||
Operating, administrative and other | 387,197 | 356,999 | |||||
Depreciation and amortization | 24,923 | 22,411 | |||||
Restructuring and acquisition charges 4 | 816 | 35,958 | |||||
Total operating expenses | 1,150,853 | 1,052,708 | |||||
Operating income (loss) 1 | 52,658 | (15,266 | ) | ||||
Interest expense, net of interest income | (6,038 | ) | (6,637 | ) | |||
Equity earnings from real estate ventures | 11,384 | 8,903 | |||||
Income (loss) before income taxes and noncontrolling interest 4 | 58,004 | (13,000 | ) | ||||
Provision for (benefit from) income taxes 4 | 14,733 | (29,145 | ) | ||||
Net income 4 | 43,271 | 16,145 | |||||
Net income attributable to noncontrolling interest | 1,377 | 243 | |||||
Net income attributable to the Company | $ | 41,894 | $ | 15,902 | |||
Basic earnings per common share | $ | 0.93 | $ | 0.36 | |||
Basic weighted average shares outstanding | 44,843,629 | 44,513,813 | |||||
Diluted earnings per common share 2 | $ | 0.92 | $ | 0.35 | |||
Diluted weighted average shares outstanding | 45,373,911 | 45,201,708 | |||||
EBITDA 3 | $ | 88,965 | $ | 16,048 | |||
Please reference attached financial statement notes. | |||||||
JONES LANG LASALLE INCORPORATED | |||||||
Segment Operating Results | |||||||
For the Three Months Ended March 31, 2015 and 2014 | |||||||
(in thousands) | |||||||
(Unaudited) | |||||||
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
REAL ESTATE SERVICES | |||||||
AMERICAS | |||||||
Revenue: | |||||||
Operating revenue | $ | 554,196 | $ | 447,082 | |||
Equity earnings | 347 | 235 | |||||
Total segment revenue | 554,543 | 447,317 | |||||
Gross contract costs1 | (52,959 | ) | (40,783 | ) | |||
Total segment fee revenue | 501,584 | 406,534 | |||||
Operating expenses: | |||||||
Compensation, operating and administrative expenses | 503,577 | 417,009 | |||||
Depreciation and amortization | 15,551 | 13,311 | |||||
Total segment operating expenses | 519,128 | 430,320 | |||||
Gross contract costs1 | (52,959 | ) | (40,783 | ) | |||
Total fee-based segment operating expenses | 466,169 | 389,537 | |||||
Operating income | $ | 35,415 | $ | 16,997 | |||
Adjusted EBITDA | $ | 50,966 | $ | 30,308 | |||
EMEA | |||||||
Revenue: | |||||||
Operating revenue | $ | 325,774 | $ | 311,882 | |||
Equity losses | (368 | ) | — | ||||
Total segment revenue | 325,406 | 311,882 | |||||
Gross contract costs1 | (71,862 | ) | (77,853 | ) | |||
Total segment fee revenue | 253,544 | 234,029 | |||||
Operating expenses: | |||||||
Compensation, operating and administrative expenses | 323,086 | 311,346 | |||||
Depreciation and amortization | 5,226 | 5,444 | |||||
Total segment operating expenses | 328,312 | 316,790 | |||||
Gross contract costs1 | (71,862 | ) | (77,853 | ) | |||
Total fee-based segment operating expenses | 256,450 | 238,937 | |||||
Operating loss | $ | (2,906 | ) | $ | (4,908 | ) | |
Adjusted EBITDA | $ | 2,320 | $ | 536 | |||
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
ASIA PACIFIC | |||||||
Revenue: | |||||||
Operating revenue | $ | 237,750 | $ | 214,705 | |||
Equity losses | (53 | ) | (82 | ) | |||
Total segment revenue | 237,697 | 214,623 | |||||
Gross contract costs1 | (49,588 | ) | (40,967 | ) | |||
Total segment fee revenue | 188,109 | 173,656 | |||||
Operating expenses: | |||||||
Compensation, operating and administrative expenses | 229,622 | 210,305 | |||||
Depreciation and amortization | 3,639 | 3,168 | |||||
Total segment operating expenses | 233,261 | 213,473 | |||||
Gross contract costs1 | (49,588 | ) | (40,967 | ) | |||
Total fee-based segment operating expenses | 183,673 | 172,506 | |||||
Operating income | $ | 4,436 | $ | 1,150 | |||
Adjusted EBITDA | $ | 8,075 | $ | 4,318 | |||
LASALLE INVESTMENT MANAGEMENT | |||||||
Revenue: | |||||||
Operating revenue | $ | 85,791 | $ | 63,773 | |||
Equity earnings | 11,458 | 8,750 | |||||
Total segment revenue | 97,249 | 72,523 | |||||
Operating expenses: | |||||||
Compensation, operating and administrative expenses | 68,829 | 55,679 | |||||
Depreciation and amortization | 507 | 488 | |||||
Total segment operating expenses | 69,336 | 56,167 | |||||
Operating income | $ | 27,913 | $ | 16,356 | |||
Adjusted EBITDA | $ | 28,420 | $ | 16,844 | |||
SEGMENT RECONCILING ITEMS | |||||||
Total segment revenue | $ | 1,214,895 | $ | 1,046,345 | |||
Reclassification of equity earnings | 11,384 | 8,903 | |||||
Total revenue | $ | 1,203,511 | $ | 1,037,442 | |||
Total operating expenses before restructuring and acquisition charges | 1,150,037 | 1,016,750 | |||||
Operating income before restructuring and acquisition charges | $ | 53,474 | $ | 20,692 | |||
Restructuring and acquisition charges | 816 | 35,958 | |||||
Operating income (loss) after restructuring and acquisition charges | $ | 52,658 | $ | (15,266 | ) | ||
Total adjusted EBITDA | $ | 89,781 | $ | 52,006 | |||
Restructuring and acquisition charges | 816 | 35,958 | |||||
Total EBITDA | $ | 88,965 | $ | 16,048 | |||
Please reference attached financial statement notes. | |||||||
JONES LANG LASALLE INCORPORATED | ||||||||||||||
Consolidated Balance Sheets | ||||||||||||||
March 31, 2015, December 31, 2014 and March 31, 2014 | ||||||||||||||
(in thousands) | ||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||
March 31, | December 31, | March 31, | ||||||||||||
2015 | 2014 | 2014 | ||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 198,491 | $ | 250,413 | $ | 140,148 | ||||||||
Trade receivables, net of allowances | 1,229,545 | 1,375,035 | 1,129,020 | |||||||||||
Notes and other receivables | 201,614 | 181,377 | 175,869 | |||||||||||
Warehouse receivables | 178,954 | 83,312 | 7,702 | |||||||||||
Prepaid expenses | 84,227 | 64,963 | 73,082 | |||||||||||
Deferred tax assets, net | 133,641 | 135,251 | 125,045 | |||||||||||
Other | 34,665 | 27,825 | 14,211 | |||||||||||
Total current assets | 2,061,137 | 2,118,176 | 1,665,077 | |||||||||||
Property and equipment, net of accumulated depreciation | 353,818 | 368,361 | 316,765 | |||||||||||
Goodwill, with indefinite useful lives | 1,870,534 | 1,907,924 | 1,903,409 | |||||||||||
Identified intangibles, net of accumulated amortization | 36,014 | 38,841 | 43,614 | |||||||||||
Investments in real estate ventures | 304,770 | 297,142 | 291,779 | |||||||||||
Long-term receivables | 83,941 | 85,749 | 60,959 | |||||||||||
Deferred tax assets, net | 98,539 | 90,897 | 88,747 | |||||||||||
Deferred compensation plans | 124,062 | 111,234 | 92,776 | |||||||||||
Other | 63,603 | 57,012 | 92,516 | |||||||||||
Total assets | $ | 4,996,418 | $ | 5,075,336 | $ | 4,555,642 | ||||||||
LIABILITIES AND EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable and accrued liabilities | $ | 548,060 | $ | 630,037 | $ | 491,129 | ||||||||
Accrued compensation | 628,592 | 990,678 | 504,164 | |||||||||||
Short-term borrowings | 21,215 | 19,623 | 16,819 | |||||||||||
Deferred tax liabilities, net | 16,554 | 16,554 | 11,274 | |||||||||||
Deferred income | 96,915 | 104,565 | 98,324 | |||||||||||
Deferred business acquisition obligations | 45,802 | 49,259 | 35,649 | |||||||||||
Warehouse facility | 178,954 | 83,312 | 7,702 | |||||||||||
Minority shareholder redemption liability | 16,333 | 11,158 | — | |||||||||||
Other | 143,175 | 141,825 | 116,011 | |||||||||||
Total current liabilities | 1,695,600 | 2,047,011 | 1,281,072 | |||||||||||
Noncurrent liabilities: | ||||||||||||||
Credit facility | 335,000 | — | 443,000 | |||||||||||
Long-term senior notes | 275,000 | 275,000 | 275,000 | |||||||||||
Deferred tax liabilities, net | 17,232 | 17,082 | 18,029 | |||||||||||
Deferred compensation | 137,100 | 125,857 | 107,484 | |||||||||||
Deferred business acquisition obligations | 67,135 | 68,848 | 100,384 | |||||||||||
Minority shareholder redemption liability | — | — | 10,456 | |||||||||||
Other | 112,475 | 118,969 | 95,904 | |||||||||||
Total liabilities | 2,639,542 | 2,652,767 | 2,331,329 | |||||||||||
(Unaudited) | (Unaudited) | |||||||||||||
March 31, | December 31, | March 31, | ||||||||||||
2015 | 2014 | 2014 | ||||||||||||
Redeemable noncontrolling interest | 9,185 | 13,449 | — | |||||||||||
Company shareholders' equity: | ||||||||||||||
Common stock, $.01 par value per share,100,000,000 shares authorized; 44,859,342, 44,828,779, and 44,541,623 shares issued and outstanding as of March 31, 2015, December 31, 2014 and March 31, 2014, respectively | 449 | 448 | 445 | |||||||||||
Additional paid-in capital | 967,981 | 961,850 | 949,718 | |||||||||||
Retained earnings | 1,673,039 | 1,631,145 | 1,282,869 | |||||||||||
Shares held in trust | (6,329 | ) | (6,407 | ) | (8,060 | ) | ||||||||
Accumulated other comprehensive loss | (308,460 | ) | (200,239 | ) | (11,384 | ) | ||||||||
Total Company shareholders' equity | 2,326,680 | 2,386,797 | 2,213,588 | |||||||||||
Noncontrolling interest | 21,011 | 22,323 | 10,725 | |||||||||||
Total equity | 2,347,691 | 2,409,120 | 2,224,313 | |||||||||||
Total liabilities and equity | $ | 4,996,418 | $ | 5,075,336 | $ | 4,555,642 | ||||||||
Please reference attached financial statement notes. | ||||||||||||||
JONES LANG LASALLE INCORPORATED
Summarized Consolidated Statements of Cash Flows
For the Three Months Ended March 31, 2015 and 2014
(in thousands)
Three Months Ended | |||||||
March 31, | |||||||
2015 | 2014 | ||||||
Cash used in operating activities | $ | (335,770 | ) | $ | (263,219 | ) | |
Cash used in investing activities | (21,054 | ) | (39,297 | ) | |||
Cash provided by financing activities | 313,381 | 290,147 | |||||
Effect of currency exchange rate changes on cash and cash equivalents | (8,479 | ) | (209 | ) | |||
Net decrease in cash and cash equivalents | $ | (51,922 | ) | $ | (12,578 | ) | |
Cash and cash equivalents, beginning of period | 250,413 | 152,726 | |||||
Cash and cash equivalents, end of period | $ | 198,491 | $ | 140,148 | |||
Please reference attached financial statement notes. | |||||||
JONES LANG LASALLE INCORPORATED
Financial Statement Notes
1. Consistent with U.S. GAAP (“GAAP”), gross contract vendor and subcontractor costs (“gross contract costs”) which are managed on certain client assignments in the Property & Facility Management and Project & Development Services business lines are presented on a gross basis in both revenue and operating expenses. Gross contract costs are excluded from revenue and operating expenses in determining “fee revenue” and “fee-based operating expenses,” respectively. Excluding these costs from revenue and operating expenses more accurately reflects how the firm manages its expense base and its operating margins.
Adjusted operating income excludes the impact of restructuring and acquisition charges. “Adjusted operating income margin” is calculated by dividing adjusted operating income by fee revenue. Below are reconciliations of revenue and operating expenses to fee revenue and fee-based operating expenses, as well as adjusted operating income margin calculations, for the three months ended March 31, 2015 and 2014.
Three Months Ended | ||||||||
March 31, | ||||||||
($ in millions) | 2015 | 2014 | ||||||
Revenue | $ | 1,203.5 | $ | 1,037.4 | ||||
Gross contract costs | (174.4 | ) | (159.6 | ) | ||||
Fee revenue | $ | 1,029.1 | $ | 877.8 | ||||
Operating expenses | $ | 1,150.9 | $ | 1,052.7 | ||||
Gross contract costs | (174.4 | ) | (159.6 | ) | ||||
Fee-based operating expenses | $ | 976.5 | $ | 893.1 | ||||
Operating income (loss) | $ | 52.6 | $ | (15.3 | ) | |||
Add: | ||||||||
Restructuring and acquisition charges* | 0.8 | 36.0 | ||||||
Adjusted operating income | $ | 53.4 | $ | 20.7 | ||||
Adjusted operating income margin | 5.2 | % | 2.4 | % | ||||
*See note 4 for more information on restructuring and acquisition charges
2. Net restructuring and acquisition charges are excluded from GAAP net income attributable to common shareholders to arrive at adjusted net income for the three months ended March 31, 2015, and 2014. Below are reconciliations of GAAP net income attributable to common shareholders to adjusted net income and calculations of earnings per share for each net income total:
Three Months Ended | ||||||||
March 31, | ||||||||
($ in millions, except per share data) | 2015 | 2014 | ||||||
GAAP net income attributable to common shareholders | $ | 41.9 | $ | 15.9 | ||||
Shares (in 000s) | 45,374 | 45,202 | ||||||
GAAP diluted earnings per share | $ | 0.92 | $ | 0.35 | ||||
GAAP net income attributable to common shareholders | $ | 41.9 | $ | 15.9 | ||||
Restructuring and acquisition charges, net* | 0.6 | 1.1 | ||||||
Adjusted net income | $ | 42.5 | $ | 17.0 | ||||
Shares (in 000s) | 45,374 | 45,202 | ||||||
Adjusted diluted earnings per share | $ | 0.94 | $ | 0.38 | ||||
*See note 4 for more information on restructuring and acquisition charges
3. Adjusted EBITDA represents earnings before interest expense net of interest income, income taxes, depreciation and amortization, adjusted for restructuring and acquisition charges. Although adjusted EBITDA and EBITDA are non-GAAP financial measures, they are used extensively by management and are useful to investors and lenders as metrics for evaluating operating performance and liquidity. EBITDA is used in the calculations of certain covenants related to the firm’s revolving credit facility. However, adjusted EBITDA and EBITDA should not be considered as an alternative to net income determined in accordance with GAAP. Because adjusted EBITDA and EBITDA are not calculated under GAAP, the firm’s adjusted EBITDA and EBITDA may not be comparable to similarly titled measures used by other companies.
Below is a reconciliation of net income to EBITDA and adjusted EBITDA:
Three Months Ended | ||||||||
March 31, | ||||||||
($ in millions) | 2015 | 2014 | ||||||
GAAP net income | $ | 43.3 | $ | 16.1 | ||||
Add: | ||||||||
Interest expense, net of interest income | 6.0 | 6.6 | ||||||
Provision for (benefit from) income taxes | 14.7 | (29.1 | ) | |||||
Depreciation and amortization | 24.9 | 22.4 | ||||||
EBITDA | $ | 88.9 | $ | 16.0 | ||||
Add: | ||||||||
Restructuring and acquisition charges | 0.8 | 36.0 | ||||||
Adjusted EBITDA | $ | 89.7 | $ | 52.0 | ||||
4. Restructuring and acquisition charges are excluded from 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 has been determined not to be meaningful to investors, so the performance of segment results has been evaluated without allocation of these charges.
5. Each geographic region offers the firm’s full range of Real Estate Services businesses consisting primarily of tenant representation and agency leasing; capital markets; property management and facilities management; project and development services; and advisory, consulting and valuations services. LaSalle Investment Management provides investment management services to institutional investors and high-net-worth individuals.
6. 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 March 31, 2015, to be filed with the Securities and Exchange Commission shortly.
7. EMEA refers to Europe, Middle East and Africa. MENA refers to Middle East and North Africa. Greater China includes China, Hong Kong, Macau and Taiwan. Southeast Asia refers to Singapore, Indonesia, Philippines, Thailand and Vietnam. The BRIC countries include Brazil, Russia, India and China.
8. Certain prior year amounts have been reclassified to conform to the current presentation.
Contact: | Christie B. Kelly |
Title: | Global Chief Financial Officer |
Phone: | +1 312 228 2316 |