Print Page     Close Window     

SEC Filings

S-1/A
JONES LANG LASALLE INC filed this Form S-1/A on 07/11/1997
Entire Document
 
<PAGE>
 
  Corporate and Financial Services. The Corporate and Financial Services
segment's revenue, which represented approximately 24.6% of the Company's total
revenue in 1995, increased $2.2 million, or 6.3%, to $37.3 million in 1995 from
$35.1 million in 1994. The revenue growth resulted from $3.7 million of
increased revenue from tenant representation activities. The tenant
representation business completed 132 transactions totaling 3.6 million square
feet in 1995, compared with 98 transactions totaling 3.8 million square feet in
1994. Although the total square footage of transactions in 1995 was slightly
less than in 1994, revenue per square foot increased due to a concentration of
activity in cities with higher average rents. Revenue gains were offset
principally by decreased revenue from its investment banking activities. The
reduction in the Company's investment banking revenue was primarily
attributable to senior personnel being dedicated to the development of new
products and initiatives in 1995, including CMBS and hotel investments, rather
than new business development.
 
  Operating expenses increased $1.2 million, or 4.2%, to $29.5 million in 1995
from $28.3 million in 1994. As a percentage of revenue, operating expenses
represented 79.1% in 1995 compared to 80.7% in 1994. The 1994 operating
expenses for this segment were adversely affected by the one-time allocation of
the headquarters relocation charge. The Corporate and Financial Services
segment's operating income, which represented 38.8% of the Company's total
operating income in 1995, increased $1.0 million in 1995, or 15.2%, to $7.8
million in 1995 from $6.8 million in 1994. The increase was a result of the
strengthening of the real estate market, increased tenant representation fees
and the investment in a commercial land and residential development entity. As
a percentage of segment revenue, operating income increased to 20.9% in 1995
from 19.3% in 1994.
 
  Investment Management. The Investment Management segment's revenue, which
represented 34.7% of the Company's total revenue in 1995, increased $13.4
million, or 33.9%, to $52.7 million in 1995 from $39.4 million in 1994. The
substantial majority of the increase in revenue was associated with the ABKB
acquisition, partially offset by a $7.0 million decrease in commingled fund
revenue. This decline in commingled fund revenue was primarily attributable to
the voluntary reduction in fees in 1995, as well as sales of real estate assets
held by such funds. In addition, as a result of the downturn in real estate
markets, commingled fund advisory fees, which are calculated as a percentage of
real estate net asset value ("NAV"), declined because of such reductions in
property NAVs.
 
  Operating expenses increased $18.1 million, or 54.2%, to $51.5 million in
1995 from $33.4 million in 1994. The substantial majority of the increase is
associated with the ABKB acquisition and the amortization of the related
goodwill and intangible assets in addition to certain one-time expenses
incurred in 1995 totaling $2.0 million related to the restructuring of this
segment. As a percentage of revenue, operating expenses increased to 97.7% in
1995 from 84.9% in 1994. The Investment Management segment's operating income,
which represented 6.0% of the Company's total operating income in 1995,
decreased $4.7 million to $1.2 million in 1995 from $6.0 million in 1994. As a
percentage of segment revenue, operating income decreased to 2.3% in 1995 from
15.1% in 1994.
 
                                       35


© Copyright Jones Lang LaSalle, IP, Inc.