|JONES LANG LASALLE INC filed this Form S-1/A on 07/11/1997|
$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
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. The Company receives
investment advisory, property management and leasing and investment banking
fees for services provided in connection with four multiple investor funds
("commingled funds") formed by the Company in the 1980s to hold real estate
investments on behalf of numerous tax-exempt institutional investors. Revenue
derived from, or in connection with, these funds represented 11.5% of the
Company's total revenue in 1996 compared to 12.8% in 1995. The Company expects
that such revenue will decrease and eventually be eliminated as the remaining
assets of the funds are sold. While the timing of the revenue loss will depend
on the timing of the dispositions, the Company expects to complete
substantially all of such dispositions prior to the end of 1998. None of the
Company's clients accounted for 10% or more of the Company's total revenue in
1996 or 1995.
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