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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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$1.1 million, or 26.9%, to $5.0 million for the three months ended March 31,
1997 from $3.9 million in the prior year period. The increase is attributable
to an increased number of transactions in the tenant representation,
investment banking and land units.
 
  Operating expenses for the Corporate and Financial Services segment
increased $1.7 million, or 23.8%, to $9.0 million for the three months ended
March 31, 1997 from $7.3 million in the prior year period. The increase in
operating expenses primarily represents increased staffing levels in the
Company's tenant representation unit in addition to increased marketing
efforts by the investment banking unit.
 
  The Corporate and Financial Services segment's operating loss increased $.7
million, or 20.1%, to $4.0 million for the three months ended March 31, 1997
from $3.3 million in the prior year period. The revenue of the Corporate and
Financial Services segment are heavily weighted to the fourth quarter of the
year with operating expenses generally spread evenly throughout the year in
accordance with GAAP. As a percentage of segment revenue, the operating loss
decreased to 80.9% in 1997 from 83.0% in 1996.
 
  Investment Management. The Investment Management segment's revenue, which
represented 46.2% of the Company's total revenue for the three months ended
March 31, 1997, increased $5.3 million, or 46.4%, to $16.6 million for the
three months ended March 31, 1997 from $11.4 million in the prior year period.
The increase is primarily attributable to the earnings associated with the
acquisition of CIN Property Management which had revenue of $3.5 million in
1997, as well as to equity earnings recognized on $7.9 million of net
additional co-investments at March 31, 1997.
 
  Operating expenses increased $2.4 million, or 20.4%, to $14.0 million for
the three months ended March 31, 1997 from $11.6 million in the prior year
period. The increase is primarily attributable to the additional compensation
and other direct operating expenses associated with the acquisition of CIN
Property Management totaling $2.8 million offset by a slight decrease in
staffing in other units within the Investment Management segment.
 
  Operating income was $2.7 million for the three months ended March 31, 1997
compared to an operating loss of $.2 million for the prior year period. The
increase is attributable to the net income generated from CIN Property
Management in addition to equity earnings on co-investments for which
compensation and other operating costs are not incurred. As a percentage of
segment revenue, operating income increased to 16.0% for the three months
ended March 31, 1997 from a negative 2.2% in the prior year period.
 
YEAR ENDED DECEMBER 31, 1996 COMPARED TO YEAR ENDED DECEMBER 31, 1995
 
  CONSOLIDATED RESULTS
  Total Revenue. The Company's total revenue grew $24.1 million, or 15.9%, to
$176.0 million in 1996 from $151.8 million in 1995. In general, the strong
United States economy in 1996 and a lack of new construction since the early
1990s have resulted in tightening supplies and rising rental rates for
commercial real estate in the United States. Accordingly, the amount of public
and private capital invested in commercial real estate generally has increased
with improving market conditions. These conditions have resulted in revenue
growth for all three of the Company's business segments. None of the Company's
clients accounted for 10% or more of the Company's total revenue in 1996.
 
  Operating Expenses. The Company's operating expenses increased $17.4
million, or 13.2%, to $149.1 million in 1996 from $131.7 million in 1995. The
increase in operating expenses generally reflected higher levels of
compensation and benefits associated with increased staffing and higher
incentive compensation associated with the Company's increased revenue. In
addition, depreciation and amortization expenses increased $1.2 million, or
27.7%, primarily as a result of amortization of goodwill and other intangibles
associated with the acquisition of CIN Property Management in October 1996
(which are being amortized over five to 20 years) and depreciation expense
associated with the Company's investment in technology-related assets and the
relocation of its corporate headquarters. As a percentage of total revenue,
operating expenses declined to 84.7% in 1996 from 86.8% in 1995, primarily
reflecting the relatively fixed nature of certain administrative expenses as
well as
 
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