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SEC Filings

10-Q
JONES LANG LASALLE INC filed this Form 10-Q on 11/06/2017
Entire Document
 

Asia Pacific - Real Estate Services (continued)
 
 
 
 
 
% Change
 
Nine Months Ended September 30,
Change in
in Local
($ in millions)
2017
2016
U.S. dollars
Currency
Leasing
$
131.8

128.3

3.5

3
%
3
%
Capital Markets & Hotels
117.6

102.9

14.7

14

15

Property & Facility Management
551.2

456.4

94.8

21

20

Property & Facility Management Fee Revenue
365.8

325.4

40.4

12

12

Project & Development Services
177.6

122.4

55.2

45

45

Project & Development Services Fee Revenue
90.5

70.0

20.5

29

29

Advisory, Consulting and Other
117.2

106.9

10.3

10

9

Total revenue
$
1,095.4

916.9

178.5

19
%
19
%
Gross contract costs
(272.5
)
(183.4
)
(89.1
)
49

48

Total fee revenue
$
822.9

733.5

89.4

12
%
12
%
Compensation, operating and administrative expenses excluding gross contract costs
761.2

685.6

75.6

11

11

Gross contract costs
272.5

183.4

89.1

49

48

Depreciation and amortization
15.7

12.4

3.3

27

27

Total operating expenses
$
1,049.4

881.4

168.0

19
%
19
%
Operating income
$
46.0

35.5

10.5

30
%
26
%
Equity earnings
$
2.3

0.5

1.8

n.m.

n.m.

Adjusted EBITDA
$
64.0

48.5

15.5

32
%
30
%
n.m. - not meaningful
Asia Pacific revenue growth for the third quarter of 2017 reflected strong organic performance in Capital Markets & Hotels, a result of increased transaction activity in numerous jurisdictions, including Japan and Australia. Property & Facility Management also contributed notable revenue growth during the quarter, primarily through new client wins and expansions of existing mandates. Geographically, the third quarter’s overall revenue growth was led by Australia, Greater China, and Japan. For the nine months ended September 30, 2017, as compared with 2016, revenue expansion was most notable in our Property & Facility Management and Project & Development Services annuity businesses, reflecting new client wins, as well as the Capital Markets & Hotels performance noted above.
The increase in operating expenses and fee-based operating expenses over the prior-year periods correlated with the growth in revenue.
Adjusted EBITDA margin, calculated on a fee-revenue basis, was 9.8% in USD and local currency for the third quarter of 2017, compared with 8.2% last year, and reflects strong organic growth and higher margin transactional businesses during the quarter coupled with ongoing cost containment initiatives.

43


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