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SEC Filings

8-K
JONES LANG LASALLE INC filed this Form 8-K on 11/06/2017
Entire Document
 
JLL Reports Strong Third-Quarter 2017 - Page 5


Business Segment Performance Highlights
Americas Real Estate Services

($ in millions, “LC” = local currency)
Three Months Ended September 30,
 
% Change in USD
 
% Change in LC
2017
 
2016
 
 
Leasing
$
345.1

 
$
335.3

 
3
 %
 
3
 %
Capital Markets & Hotels
114.6

 
112.5

 
2

 
2

Capital Markets & Hotels Fee Revenue1
107.5

 
109.6

 
(2
)
 
(2
)
Property & Facility Management
181.3

 
184.1

 
(2
)
 
(2
)
Property & Facility Management Fee Revenue1
144.9

 
142.2

 
2

 
2

Project & Development Services
97.8

 
96.8

 
1

 
1

Project & Development Services Fee Revenue1
93.8

 
86.1

 
9

 
8

Advisory, Consulting and Other
57.9

 
42.4

 
37

 
37

Total revenue
$
796.7

 
$
771.1

 
3
 %
 
3
 %
Gross contract costs
(40.4
)
 
(52.6
)
 
(23
)
 
(23
)
Net non-cash MSR and mortgage banking derivative activity
(7.1
)
 
(2.9
)
 
n.m.

 
n.m.

Total fee revenue1
$
749.2

 
$
715.6

 
5
 %
 
5
 %
Operating income
$
73.4

 
$
63.8

 
15
 %
 
15
 %
Equity earnings
$
0.1

 
$
0.1

 
 %
 
100
 %
Adjusted EBITDA1
$
90.5

 
$
82.2

 
10
 %
 
10
 %
n.m. - not meaningful as represented by a percentage change of greater than 100%, favorably or unfavorably.
Capital Markets & Hotels revenue includes both “gross” and “fee” presentation, effective in the fourth quarter of 2016, with the difference between the two amounts representing net non-cash activity associated with mortgage servicing rights and mortgage banking derivatives, which is also excluded from the company's non-GAAP performance measures.
Percentage variances in the Americas Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted. See Financial Statement Note (1) following the Financial Statements in this news release.
Americas Third-Quarter 2017 Performance Highlights:
Total revenue was $796.7 million and fee revenue was $749.2 million, representing increases of 3 percent and 5 percent, respectively, compared with 2016. The growth was led by Advisory, Consulting and Other, with contributions from Technology Solutions and the recently acquired U.S. valuations platform. Leasing continued its strong year-to-date performance in favorable market conditions, specifically in the U.S. Northwest, New York and New England markets.
Operating expenses were $723.3 million, up 2 percent from $707.3 million in 2016, and fee-based operating expenses, excluding restructuring and acquisition charges, were $682.9 million, up 4 percent from $654.7 million in 2016, both correlating with the increase in revenue.
Operating income was $73.4 million, up 15 percent from $63.8 million last year. Adjusted EBITDA was $90.5 million, compared with $82.2 million in 2016. Adjusted EBITDA margin, calculated on a fee-revenue basis, was 12.1 percent in USD and local currency, compared with 11.5 percent last year. The increase in Adjusted EBITDA margin was driven by changes in service mix augmented by management initiatives to contain controllable expenses.

-continued-


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