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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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YEAR ENDED DECEMBER 31, 1995 COMPARED TO YEAR ENDED DECEMBER 31, 1994
 
  CONSOLIDATED RESULTS
  Total Revenue. Total revenue increased $24.9 million, or 19.6%, to $151.8
million in 1995 from $126.9 million in 1994. The revenue increase resulted
from the full year effect of the acquisition of ABKB's securities and advisory
business in late 1994 and from revenue growth in the Management Services
segment's leasing and facility management activities. The Company's revenue
growth also reflected improvements in both general economic conditions and in
real estate industry fundamentals.
 
  Operating Expenses. The Company's operating expenses increased $22.8
million, or 20.9%, to $131.7 million in 1995 from $108.9 million in 1994. As a
percentage of total revenue, operating expenses increased to 86.8% in 1995
from 85.8% in 1994. The increase in operating expenses was attributable
primarily to a $13.1 million increase in compensation and benefits expenses,
an $8.3 million increase in other operating and administrative expenses and,
to a lesser extent, a $1.4 million increase in depreciation and amortization
expense. The increase in compensation and benefits expenses reflected the
effect of the ABKB acquisition in late 1994 and higher levels of employee
incentive compensation associated with certain segments exceeding their
operating income objectives. The increase in other operating and
administrative expenses was primarily attributable to the effect of the ABKB
acquisition and, to a lesser extent, to certain one-time costs and the $1.9
million provision for the uncollectible portion of the Company's long-term
receivable from Diverse. The increase in depreciation and amortization expense
principally resulted from the full-year effect of the amortization of the
intangible assets arising from the acquisition of ABKB in late 1994. The $9.4
million in intangibles recognized in that transaction are being amortized over
a 10 year period. In 1994, operating expenses included a $4.2 million charge
related to the commitment to relocate the Company's headquarters, which charge
was allocated to all of the Company's business segments, principally on a
head-count basis.
 
  Operating Income. Operating income increased $2.1 million, or 11.7%, to
$20.1 million in 1995 from $18.0 million in 1994. As a result of the factors
noted above, as a percentage of total revenue, operating income represented
13.2% in 1995 compared to 14.2% in 1994.
 
  Interest Expense. Interest expense declined to $3.8 million in 1995 from
$5.2 million in 1994 and is substantially attributable to the $14.1 million
principal payment made on the Dai-ichi Notes in late 1994.
 
  Net Earnings. Net earnings increased $3.5 million, or 28.5%, to $15.8
million in 1995 from $12.3 million in 1994. Net earnings represented 10.4% of
total revenue, compared with 9.7% in 1994.
 
  SEGMENT OPERATING RESULTS
  Management Services. The Management Services segment's revenue, which
represented 40.7% of the Company's total revenue in 1995, increased $10.5
million, or 20.0%, to $63.2 million in 1995 from $52.6 million in 1994.
Facility management revenue increased $4.3 million as the Company obtained
over 17.0 million square feet of new assignments. Improving leasing markets
drove leasing revenue to record levels in 1995, with leasing revenue
increasing $4.2 million over 1994 levels. Property management fees also
increased $1.6 million to $34.0 million, principally as a result of new
assignments.
 
  Operating expenses increased $4.7 million, or 10.0%, to $52.1 million in
1995 from $47.3 million in 1994, primarily as a result of increased staffing
levels to support new assignments in addition to expanded marketing costs
associated with promoting the Company's facilities management initiative. As a
percentage of revenue, operating expenses decreased to 82.4% in 1995 from
89.9% in 1994 primarily as a result of higher than normal corporate overhead
expenses incurred in 1994 as a result of the Management Services segment's
allocation of the headquarters relocation charge. The Management Services
segment's operating income, which represented 55.1% of the Company's total
operating income in 1995, increased $5.8 million, or 110%, to $11.1 million in
1995 from $5.3 million in 1994. As a percentage of segment revenue, operating
income increased to 17.6% in 1995 from 10.0% in 1994.
 
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