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SEC Filings

S-1/A
JONES LANG LASALLE INC filed this Form S-1/A on 07/03/1997
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THREE MONTHS ENDED MARCH 31, 1997 COMPARED TO THREE MONTHS ENDED MARCH 31,
1996
 
  CONSOLIDATED RESULTS
  Total Revenue. The Company's total revenue grew $8.7 million, or 32.0%, to
$36.0 million for the three months ended March 31, 1997 from $27.3 million in
the prior year period. The increase is attributable to the continued
improvement in real estate market conditions, the acquisition of CIN Property
Management in October 1996 and the increase in co-investments.
 
  Operating Expenses. The Company's operating expenses grew $6.8 million, or
20.9%, to $39.3 million for the three months ended March 31, 1997 from $32.5
million in the prior year period. The increase is primarily attributable to
the acquisition of CIN Property Management, increased staffing levels and
higher compensation and benefits generally as a result of anticipated
transactions. As a percentage of total revenue, operating expenses declined to
109.1% for the three months ended March 31, 1997 from 119.1% in the prior year
period.
 
  Operating Income (Loss). The Company typically incurs a loss in the first
quarter of the calendar year. For the three months ended March 31, 1997, the
Company's operating loss decreased $1.9 million to $3.3 million from $5.2
million in the prior year period. The decrease is primarily attributable to
the earnings associated with the acquisition of CIN Property Management and
equity earnings generated from co-investments with which additional
compensation costs are not associated. As a percentage of total revenue, the
operating loss decreased to 9.1% for the three months ended March 31, 1997
from 19.1% in the prior year period.
 
  Interest Expense. Interest expense increased $.8 million, or 80.9%, to $1.7
million in 1997 from $.9 million in 1996. The increase is substantially a
result of increased borrowings under the Long-Term Facility to fund the CIN
Property Management acquisition, technology and infrastructure investments and
co-investments.
 
  Provision (Benefit) for Income Taxes. The benefit for income taxes decreased
by $.1 million to $.2 million in 1997 from $.4 million in 1996.
 
  Net Earnings (Loss). The Company's net loss decreased $1.1 million, or
18.5%, to $4.7 million in 1997 from $5.8 million in 1996.
 
  SEGMENT OPERATING RESULTS
  Management Services. The Management Services segment's revenue, which
represented 40.0% of the Company's total revenue for the three months ended
March 31, 1997, increased $2.3 million, or 19.2%, to $14.4 million from $12.1
million in the prior year period. The increase was due to a $.9 million
increase in property management fees and $.7 million increase in leasing fees
as a result of the net addition of 4.5 million square feet of new property
management assignments. In addition, facility management fees increased $.7
million as a result of an increase of one million square feet of property
under management in the fourth quarter of 1996.
 
  Operating expenses increased $2.6 million, or 19.2%, to $16.4 million for
the three months ended March 31, 1997 from $13.7 million in the prior year
period. The increase is primarily attributable to increased compensation,
relocation, travel and marketing expenses associated with the national leasing
and business development group established in the second half of 1996 as well
as increased staffing levels to manage the additional property and facility
management assignments.
 
  The Management Services segment's operating loss increased $.3 million, or
18.7%, to $1.9 million for the three months ended March 31, 1997 from $1.6
million in the prior year period. As a percentage of revenue, Management
Services' operating loss remained constant at 13.3% for the three months ended
March 31, 1997 compared to the prior year period.
 
  Corporate and Financial Services. The Corporate and Financial Services
segment's revenue, which represented 13.8% of the Company's total revenue for
the three months ended March 31, 1997, increased
 
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