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SEC Filings

JONES LANG LASALLE INC filed this Form S-1/A on 07/11/1997
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  Segment Revenue. A substantial majority of Management Services revenue
reflects property and facility management fees earned evenly throughout the
year. However, fourth quarter revenue is generally higher due to higher levels
of leasing fees earned in the fourth quarter as well as incentive fees earned
under performance-based agreements. Corporate and Financial Services revenue
has historically increased from quarter to quarter in a given year with the
largest proportion of transactions being completed in the fourth quarter,
consistent with the industry. Investment Management revenue is generally
earned evenly throughout the year with the fourth quarter 1996 revenue
reflective of the CIN Property Management acquisition in October 1996.
  Operating Expenses. Bonus accruals are recorded quarterly on the basis of
the progress toward achievement of revenue targets. Consequently, fourth
quarter compensation and benefit expenses track the higher level of revenue
generated in the fourth quarter. Other operating and administrative expenses
are generally relatively consistent throughout the year.
  Net cash flows used in operations totaled $4.7 million for the three months
ended March 31, 1997 compared to $12.7 million for the prior year period. Net
cash flows provided by operations totaled $14.0 million, $13.6 million and
$24.6 million for the years ended December 31, 1996, 1995 and 1994,
respectively. The primary element of change for the three months ended March
31, 1997 and in the years 1996 through 1994 is the increase in receivables,
which can be attributed to the significant increase in leasing commissions
generated in the fourth quarter of each year for both the Management Services
and Corporate and Financial Services segments. Fees recognized from lease
transactions are typically collected half when the lease is executed and half
when the space is occupied with occupancy generally occurring between six and
12 months after the lease execution. These increases have been partially
offset by steady increases in accounts payable and accrued compensation which
is also attributable to the increase in fourth quarter revenue generation.
  Since 1993, the Company has invested or committed approximately $30 million
in over 30 separate properties or funds. As of March 31, 1997, the Company had
a total net investment of $15.8 million in 33 separate property or fund co-
investments (which properties and funds had a total acquisition cost exceeding
$1.0 billion). Twenty-nine of these co-investments were made in the last three
years. The holding period for co-investments typically ranges from three to
seven years. Such co-investments are typically represented by non-controlling
general partner and limited partner interests. In addition to its share of
investment returns, the Company typically earns property management, leasing,
and advisory fees on these investments. The equity earnings from these co-
investments have had a relatively small impact on the Company's current
earnings and cash flow. However, the Company's increased participation as a
principal in real estate investments could increase fluctuations in the
Company's net earnings and cash flow as a result of the timing and magnitude
of the gains or losses and potential incentive participation fees, if any, to
be recognized on the disposition of the assets. In certain of these
investments, the Company will not have complete discretion to control the
timing of the disposition of such investments.     
  Net cash used in investing activities was $2.0 million for the three months
ended March 31, 1997 compared to $6.0 million for the prior year period. The
reduction in net cash used in investing activities is a result of $.9 million
of distributions from real estate investments and a decrease of $4.1 million
in capital investments over the prior year period offset by an increase in
capital contributions of $1.1 million to real estate ventures. Net cash used
in investing activities was $32.5 million in 1996, compared to $5.7 million in
1995. The increase was attributable to the acquisition of CIN Property
Management for $15.7 million, as well as increases in co-investment activity,
expenditures on furniture and fixtures at the Company's new corporate
headquarters and increased investments in technology. Net cash used in
investing activities was $5.7 million in 1995, compared to $4.9 million in
1994. Net co-investment activity in 1995 was $2.0 million lower than in the
prior year; however, capital investments in technology in 1995 were $2.8
million higher than in 1994. As of March 31, 1997, the Company had unfunded
commitments for existing co-investments of $1.1 million.

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