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SEC Filings

S-1/A
JONES LANG LASALLE INC filed this Form S-1/A on 07/11/1997
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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. Revenue growth was impacted by a decrease in
revenue from the commingled funds, which revenue represented 12.8% of the
Company's total revenue in 1995 compared to 20.1% in 1994. No client accounted
for more than 10% of the Company's total revenue in 1995 or 1994.     
 
  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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