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JLL Reports Strong Second-Quarter 2017
Revenue increase of 14 percent and diluted EPS of $1.71 reflect notable progress toward achieving growth strategy

CHICAGO, Aug. 2, 2017 /PRNewswire/ -- Jones Lang LaSalle Incorporated (NYSE: JLL) today reported diversified revenue increases and strong operating results for the second quarter of 2017, resulting in diluted earnings per share of $1.71 and adjusted diluted earnings per share1 of $1.82.

  • Revenue up 14 percent to $1.8 billion; fee revenue1 up 14 percent to $1.5 billion
    • Broad-based Real Estate Services revenue growth, balanced organic and M&A
    • Robust leasing and capital markets performance against solid market fundamentals
    • Corporate Solutions revenue growth fueled by M&A and cross-selling success
  • Margins reflect organic growth more than offset by anticipated decline in LaSalle incentive fees and ongoing M&A integration
  • Operating cash flows strengthened, driven by improved working capital management
  • Issuance of €350 million fixed-rate senior unsecured notes extends debt maturity profile at favorable rates

CEO Comment:

"Broad-based revenue growth supported by healthy conditions in key markets globally contributed to a strong second quarter at JLL," said Christian Ulbrich, CEO. "We remain positive entering the second half of the year given our progress on strategic initiatives and underlying operating momentum."

Summary Financial Results

 


Three Months Ended


Six Months Ended

June 30,

June 30,

   ($ in millions, except per share data)


2017

2016


2017

2016








Revenue


$

1,835


$

1,604



$

3,450


$

2,940


Fee Revenue1


1,533


1,343



2,893


2,464


Net Income


78


79



89


105


Adjusted Net Income1


83


88



104


125









Diluted Earnings per Share


$

1.71


$

1.73



$

1.95


$

2.30


Adjusted Diluted Earnings per Share1


$

1.82


$

1.93



$

2.27


$

2.75









Adjusted EBITDA1


$

158


$

160



$

232


$

245


Adjusted EBITDA, Real Estate Services


136


113



190


163


Adjusted EBITDA, LaSalle


22


47



42


82



(1) For discussion of non-GAAP financial measures, see Note 1 following the Financial Statements in this news release.

 

Consolidated 

 

   ($ in millions, "LC" = local currency)

Three Months Ended
June 30,


%

Change

in USD


%

Change

in LC

2017


2016



Leasing

$

475.7



$

415.4



15

%


15

%

Capital Markets & Hotels

235.1



220.0



7



10


Capital Markets & Hotels Fee Revenue1

228.4



217.3



5



8


Property & Facility Management

572.0



405.2



41



47


Property & Facility Management Fee Revenue1

420.6



295.0



43



49


Project & Development Services

318.5



303.5



5



7


Project & Development Services Fee Revenue1

174.6



155.5



12



14


Advisory, Consulting and Other

160.6



132.5



21



24


Real Estate Services ("RES") revenue

$

1,761.9



$

1,476.6



19

%


22

%

LaSalle

72.8



127.0



(43)



(41)


Total revenue

$

1,834.7



$

1,603.6



14

%


17

%

Gross contract costs

(295.3)



(258.2)



14



18


Net non-cash MSR and mortgage banking derivative activity

(6.7)



(2.7)



n.m.



n.m.


Total fee revenue

$

1,532.7



$

1,342.7



14

%


17

%

RES fee revenue

$

1,459.9



$

1,215.7



20

%


23

%

Operating income

$

104.3



$

113.9



(8)

%


(10)

%

Equity earnings

$

14.5



$

9.2



58

%


58

%

Adjusted EBITDA

$

158.2



$

159.8



(1)

%


(2)

%

n.m. - not meaningful as represented by a percentage change of greater than 100%, favorably or unfavorably.


Capital Markets & Hotels revenue includes both "gross" and "fee" presentation, effective in the fourth quarter of 2016, with the difference between the two amounts representing net non-cash activity associated with mortgage servicing rights and mortgage banking derivatives, which is also excluded from our non-GAAP performance measures.


Percentage variances in the Consolidated Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted. See Financial Statement Note (1) following the Financial Statements in this news release.

Consolidated Second-Quarter 2017 Performance Highlights:

  • Consolidated revenue was $1.8 billion and consolidated fee revenue was $1.5 billion, both representing increases of 17 percent against the prior-year quarter. Revenue growth was broad-based across RES segments and reflects expansion of both transactional and annuity businesses. Organic expansion accounted for 43 percent of the RES fee revenue increase, with the balance from acquisitions completed after the second quarter of 2016.
  • Consolidated operating expenses were $1.7 billion, compared with $1.5 billion in the prior year, and Consolidated fee-based operating expenses, excluding restructuring and acquisition charges, were $1.4 billion, compared with $1.2 billion last year, both increases of 20 percent as compared to 2016. The expense growth reflected continued expansion of annuity businesses, most notably through our August 2016 acquisition of Integral UK Ltd. ("Integral"), as well as continued increases to investments in data, technology and people.
  • LaSalle reported continued solid annuity revenue performance. Incentive fees were down $48.5 million compared to the prior-year period as 2016 had outsized incentive fees relating to asset sales within maturing funds, timed to provide superior risk-adjusted return to our clients. LaSalle's results also reflect notable equity earnings, primarily from net valuation increases across our co-investment portfolio.
  • Net income attributable to common shareholders was $78.2 million compared with $78.8 million last year. Adjusted EBITDA was $158.2 million, compared with $159.8 million in 2016. Adjusted EBITDA margin, calculated on a fee-revenue basis, was 10.3 percent in USD (10.0 percent in local currency), compared with 11.9 percent last year. The results reflect the anticipated decline in LaSalle incentive fees as well as ongoing M&A integration.

Diluted earnings per share were $1.71, compared with $1.73 last year. Adjusted diluted earnings per share were $1.82, compared with $1.93 in 2016.

Balance Sheet and Net Interest Expense:

  • Total net debt was $1.3 billion as of June 30, 2017, a decrease of $121.0 million from last quarter, primarily reflecting business performance and ongoing improved working capital management.
  • The issuance of €350.0 million long-term debt increased the balance of our fixed to variable-rate debt as well as extended our maturity profile. The debt issuance included €175.0 million of 1.96 percent, 10-year notes due 2027 and €175.0 million of 2.21 percent, 12-year notes due 2029. Proceeds were used to reduce outstanding borrowings on our Credit facility.
  • Net interest expense for the second quarter was $14.6 million, up from $10.9 million in 2016. Nearly half of the year-over-year increase was due to a higher effective interest rate on our Facility, 2.0 percent this quarter as compared with 1.5 percent last year. An increase in average borrowings from $941.5 million in the second quarter of 2016 to $1,302.8 million in the current quarter, driven by nearly $460 million in acquisition-related payments over the last 12 months, also contributed to the increase in net interest expense.

 

Consolidated

 

   ($ in millions, "LC" = local currency)

Six Months Ended
June 30,


%

Change

in USD


%

Change

in LC

2017


2016



Leasing

$

850.8



$

735.2



16

%


17

%

Capital Markets & Hotels

425.9



389.7



9



13


Capital Markets & Hotels Fee Revenue1

421.9



390.3



8



11


Property & Facility Management

1,114.9



796.2



40



47


Property & Facility Management Fee Revenue1

833.8



581.2



43



50


Project & Development Services

601.3



549.4



9



12


Project & Development Services Fee Revenue1

329.1



286.9



15



16


Advisory, Consulting and Other

296.0



242.4



22



25


RES revenue

$

3,288.9



$

2,712.9



21

%


25

%

LaSalle

161.0



227.5



(29)



(27)


Total revenue

$

3,449.9



$

2,940.4



17

%


21

%

Gross contract costs

(553.3)



(477.5)



16



21


Net non-cash MSR and mortgage banking derivative activity

(4.0)



0.6



n.m.



n.m.


Total fee revenue

$

2,892.6



$

2,463.5



17

%


21

%

RES fee revenue

$

2,731.6



$

2,236.0



22

%


25

%

Operating income

$

126.6



$

143.3



(12)

%


(17)

%

Equity earnings

$

20.1



$

22.2



(9)

%


(9)

%

Adjusted EBITDA

$

232.1



$

244.8



(5)

%


(7)

%

n.m. - not meaningful as represented by a percentage change of greater than 100%, favorably or unfavorably.


Capital Markets & Hotels revenue includes both "gross" and "fee" presentation, effective in the fourth quarter of 2016, with the difference between the two amounts representing net non-cash activity associated with mortgage servicing rights and mortgage banking derivatives, which is also excluded from our non-GAAP performance measures.


Percentage variances in the Consolidated Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted. See Financial Statement Note (1) following the Financial Statements in this news release.

 

 

Business Segment Performance Highlights


Americas Real Estate Services


   ($ in millions, "LC" = local currency)

Three Months Ended
June 30,


%

Change

in USD


%

Change

in LC

2017


2016



Leasing

$

361.9



$

300.0



21

%


21

%

Capital Markets & Hotels

104.3



91.2



14



15


Capital Markets & Hotels Fee Revenue1

97.6



88.5



10



11


Property & Facility Management

173.2



167.4



3



4


Property & Facility Management Fee Revenue1

134.5



127.4



6



6


Project & Development Services

94.9



79.2



20



20


Project & Development Services Fee Revenue1

89.7



75.8



18



18


Advisory, Consulting and Other

57.5



35.1



64



64


Total revenue

$

791.8



$

672.9



18

%


18

%

Gross contract costs

(43.9)



(43.4)



1



3


Net non-cash MSR and mortgage banking derivative activity

(6.7)



(2.7)



n.m.



n.m.


Total fee revenue

$

741.2



$

626.8



18

%


18

%

Operating income

$

75.0



$

50.6



48

%


48

%

Equity earnings

$

0.2



$

0.4



(50)

%


(50)

%

Adjusted EBITDA

$

91.8



$

66.2



39

%


39

%

n.m. - not meaningful as represented by a percentage change of greater than 100%, favorably or unfavorably.


Capital Markets & Hotels revenue includes both "gross" and "fee" presentation, effective in the fourth quarter of 2016, with the difference between the two amounts representing net non-cash activity associated with mortgage servicing rights and mortgage banking derivatives, which is also excluded from our non-GAAP performance measures.


Percentage variances in the Americas Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted. See Financial Statement Note (1) following the Financial Statements in this news release.

 

Americas Second-Quarter 2017 Performance Highlights:

  • Total revenue was $791.8 million and fee revenue was $741.2 million, both representing an 18 percent increase compared with 2016. Over 70 percent of fee revenue growth was from organic expansion and also was highlighted by leasing performance in the U.S., specifically in the New York, Northwest and Florida markets. The increase in Project & Development Services revenue was Corporate Solutions-focused reflecting expansion of existing client mandates and new wins. Growth in Advisory, Consulting and Other was a result of recent acquisitions, including our new U.S. valuations platform and Technology Solutions from BRG.
  • Operating expenses were $716.8 million, up 15 percent from $622.3 million in 2016. Fee-based operating expenses, excluding restructuring and acquisition charges, were $672.9 million, up 16 percent from $578.9 million in 2016.
  • Operating income was $75.0 million, up 48 percent from $50.6 million last year. Adjusted EBITDA was $91.8 million, compared with $66.2 million in 2016. Adjusted EBITDA margin, calculated on a fee-revenue basis, was 12.4 percent in USD and local currency, compared with 10.6 percent last year. The increase in Adjusted EBITDA margin was driven by the notable revenue growth discussed above, partially offset by continued increases to investments in data, technology and people.

 

Americas Real Estate Services


   ($ in millions, "LC" = local currency)

Six Months Ended
June 30,


%

Change

in USD


%

Change

in LC

2017


2016



Leasing

$

658.0



$

549.0



20

%


20

%

Capital Markets & Hotels

203.5



169.8



20



20


Capital Markets & Hotels Fee Revenue1

199.5



170.4



17



17


Property & Facility Management

355.0



344.7



3



3


Property & Facility Management Fee Revenue1

276.9



258.7



7



7


Project & Development Services

187.9



146.2



29



28


Project & Development Services Fee Revenue1

175.0



140.0



25



25


Advisory, Consulting and Other

110.2



66.7



65



65


Total revenue

$

1,514.6



$

1,276.4



19

%


19

%

Gross contract costs

(91.0)



(92.2)



(1)




Net non-cash MSR and mortgage banking derivative activity

(4.0)



0.6



n.m.



n.m.


Total fee revenue

$

1,419.6



$

1,184.8



20

%


20

%

Operating income

$

112.5



$

83.0



36

%


36

%

Equity earnings

$

0.4



$

0.7



(43)

%


(43)

%

Adjusted EBITDA

$

155.4



$

120.8



29

%


29

%

n.m. - not meaningful as represented by a percentage change of greater than 100%, favorably or unfavorably.


Capital Markets & Hotels revenue includes both "gross" and "fee" presentation, effective in the fourth quarter of 2016, with the difference between the two amounts representing net non-cash activity associated with mortgage servicing rights and mortgage banking derivatives, which is also excluded from our non-GAAP performance measures.


Percentage variances in the Americas Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted. See Financial Statement Note (1) following the Financial Statements in this news release.

 



EMEA Real Estate Services

 

   ($ in millions, "LC" = local currency)

Three Months Ended
June 30,


%

Change

in USD


%

Change

in LC

2017


2016



Leasing

$

65.7



$

64.6



2

%


7

%

Capital Markets & Hotels

96.2



93.4



3



10


Property & Facility Management

208.1



80.0



n.m.



n.m.


Property & Facility Management Fee Revenue1

161.4



59.3



n.m.



n.m.


Project & Development Services

160.0



183.8



(13)



(10)


Project & Development Services Fee Revenue1

53.4



56.3



(5)



(1)


Advisory, Consulting and Other

62.4



59.5



5



11


Total revenue

$

592.4



$

481.3



23

%


32

%

Gross contract costs

(153.3)



(148.2)



3



10


Total fee revenue

$

439.1



$

333.1



32

%


42

%

Operating income

$

9.0



$

15.5



(42)

%


(55)

%

Equity earnings

$



$



%


%

Adjusted EBITDA

$

20.1



$

23.2



(13)

%


(18)

%

n.m. - not meaningful as represented by a percentage change of greater than 100%, favorably or unfavorably.


Percentage variances in the EMEA Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted. See Financial Statement Note (1) following the Financial Statements in this news release.

 

EMEA Second-Quarter 2017 Performance Highlights:

  • EMEA revenue was $592.4 million and fee revenue was $439.1 million, reflecting increases of 32 percent and 42 percent, respectively, from last year. Revenue expansion compared with 2016 was driven by Property & Facility Management, the result of incremental fee revenue from Integral. Solid growth in Capital Markets & Hotels together with Leasing performance across a number of countries, notably Germany, also contributed to the results.
  • Operating expenses were $583.4 million, up 35 percent from $465.8 million in 2016. Fee-based operating expenses, excluding restructuring and acquisition charges, were $430.1 million, up 46 percent from $317.6 million last year, due to incremental fee-based operating expenses relating to Integral.
  • Operating income was $9.0 million, compared with $15.5 million in the prior year. Adjusted EBITDA was $20.1 million, compared with $23.2 million last year. Adjusted EBITDA margin, calculated on a fee-revenue basis, was 4.6 percent in USD (4.0 percent in local currency), compared with 7.0 percent last year. The decline in profitability primarily reflects a shift in service mix associated with the continued integration of Integral together with continued increases to investments in data, technology and people.

 

EMEA Real Estate Services


   ($ in millions, "LC" = local currency)

Six Months Ended
June 30,


%

Change

in USD


%

Change

in LC

2017


2016



Leasing

$

114.0



$

108.1



5

%


12

%

Capital Markets & Hotels

159.2



158.0



1



9


Property & Facility Management

406.3



152.3



n.m.



n.m.


Property & Facility Management Fee Revenue1

318.5



111.5



n.m.



n.m.


Project & Development Services

301.6



323.9



(7)



(2)


Project & Development Services Fee Revenue1

96.3



103.6



(7)



(2)


Advisory, Consulting and Other

110.8



108.4



2



10


Total revenue

$

1,091.9



$

850.7



28

%


39

%

Gross contract costs

(293.1)



(261.1)



12



21


Total fee revenue

$

798.8



$

589.6



35

%


48

%

Operating loss

$

(20.4)



$

(0.3)



n.m.



n.m.


Equity losses

$



$

(0.1)



100

%


100

%

Adjusted EBITDA

$

0.9



$

15.6



(94)

%


n.m.


n.m. - not meaningful as represented by a percentage change of greater than 100%, favorably or unfavorably.


Percentage variances in the EMEA Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted. See Financial Statement Note (1) following the Financial Statements in this news release.

 



Asia Pacific Real Estate Services


   ($ in millions, "LC" = local currency)

Three Months Ended
June 30,


%

Change

in USD


%

Change

in LC

2017


2016



Leasing

$

48.1



$

50.8



(5)

%


(5)

%

Capital Markets & Hotels

34.6



35.4



(2)



(2)


Property & Facility Management

190.7



157.8



21



21


Property & Facility Management Fee Revenue1

124.7



108.3



15



16


Project & Development Services

63.6



40.5



57



58


Project & Development Services Fee Revenue1

31.5



23.4



35



35


Advisory, Consulting and Other

40.7



37.9



7



8


Total revenue

$

377.7



$

322.4



17

%


18

%

Gross contract costs

(98.1)



(66.6)



47



47


Total fee revenue

$

279.6



$

255.8



9

%


10

%

Operating income

$

17.5



$

19.1



(8)

%


(10)

%

Equity earnings (losses)

$

0.6



$

(0.1)



n.m.



n.m.


Adjusted EBITDA

$

23.8



$

23.2



3

%


1

%

n.m. - not meaningful as represented by a percentage change of greater than 100%, favorably or unfavorably.


Percentage variances in the Asia Pacific Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted. See Financial Statement Note (1) following the Financial Statements in this news release.

 

Asia Pacific Second-Quarter 2017 Performance Highlights:

  • Asia Pacific revenue was $377.7 million, an increase of 18 percent from 2016; fee revenue was $279.6 million, an increase of 10 percent from last year. Approximately 75 percent of the fee revenue increase was from organic expansion. Growth was most prominent in our Property & Facility Management and Project & Development Services annuity businesses and was geographically led by Greater China, Australia and India.
  • Operating expenses were $360.2 million, up 19 percent from $303.3 million last year. Fee-based operating expenses, excluding restructuring and acquisition charges, were $262.1 million, up 11 percent from $236.7 million last year. The increase in expenses correlated with the revenue growth.
  • Operating income was $17.5 million, compared with $19.1 million in 2016. Adjusted EBITDA was $23.8 million, compared with $23.2 million in 2016. Adjusted EBITDA margin, calculated on a fee-revenue basis, was 8.5 percent in USD (8.3 percent in local currency), compared with 9.1 percent last year, and primarily reflects a service mix shift towards annuity businesses.

 







Asia Pacific Real Estate Services

 

   ($ in millions, "LC" = local currency)

Six Months Ended
June 30,


%

Change

in USD


%

Change

in LC

2017


2016



Leasing

$

78.8



$

78.1



1

%


2

%

Capital Markets & Hotels

63.2



61.9



2



2


Property & Facility Management

353.6



299.2



18



18


Property & Facility Management Fee Revenue1

238.4



211.0



13



13


Project & Development Services

111.8



79.3



41



41


Project & Development Services Fee Revenue1

57.8



43.3



33



33


Advisory, Consulting and Other

75.0



67.3



11



11


Total revenue

$

682.4



$

585.8



16

%


17

%

Gross contract costs

(169.2)



(124.2)



36



36


Total fee revenue

$

513.2



$

461.6



11

%


11

%

Operating income

$

21.8



$

17.9



22

%


16

%

Equity earnings

$

1.4



$



n.m.



n.m.


Adjusted EBITDA

$

33.7



$

26.2



29

%


25

%

n.m. - not meaningful as represented by a percentage change of greater than 100%, favorably or unfavorably.


Percentage variances in the Asia Pacific Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted. See Financial Statement Note (1) following the Financial Statements in this news release.

 


LaSalle


   ($ in millions, "LC" = local currency)

Three Months Ended
June 30,


%

Change

in USD


%

Change

in LC

2017


2016



Advisory Fees

$

64.4



$

66.4



(3)

%


%

Transaction Fees & Other

5.0



8.7



(43)



(41)


Incentive Fees

3.4



51.9



(93)



(93)


Total revenue

$

72.8



$

127.0



(43)

%


(41)

%

Operating income

$

8.2



$

38.9



(79)

%


(78)

%

Equity earnings

$

13.7



$

8.9



54

%


55

%

Adjusted EBITDA

$

22.6



$

47.4



(52)

%


(51)

%

 

LaSalle

 

   ($ in millions, "LC" = local currency)

Six Months Ended
June 30,


%

Change

in USD


%

Change

in LC

2017


2016



Advisory Fees

$

127.0



$

128.6



(1)

%


2

%

Transaction Fees & Other

18.7



32.9



(43)



(42)


Incentive Fees

15.3



66.0



(77)



(76)


Total revenue

$

161.0



$

227.5



(29)

%


(27)

%

Operating income

$

22.6



$

60.5



(63)

%


(60)

%

Equity earnings

$

18.3



$

21.6



(15)

%


(15)

%

Adjusted EBITDA

$

42.2



$

82.5



(49)

%


(47)

%


Percentage variances in the LaSalle Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted. See Financial Statement Note (1) following the Financial Statements in this news release.

 

LaSalle Second-Quarter 2017 Performance Highlights:

  • Total revenue of $72.8 million decreased 41 percent from 2016, which benefited from substantial incentive fees generated from asset sales within maturing funds. Advisory fees, while historically strong, were flat as compared with the prior year.
  • Equity earnings were $13.7 million, as compared with $8.9 million in 2016, driven by net valuation increases related to investments in Europe and Asia. In the prior-year period, equity earnings were more notably impacted by gains recognized on dispositions of legacy investments.
  • Operating expenses were $64.6 million, down 24 percent from $88.0 million last year, reflecting lower variable compensation expense associated with the noted decrease in incentive fees.
  • Operating income was $8.2 million, a decrease from $38.9 million in the prior year. Adjusted EBITDA was $22.6 million, compared with $47.4 million last year. Adjusted EBITDA margin was 31.1 percent in USD (30.8 percent in local currency), compared with 37.3 percent in the prior-year period. The decreases in Adjusted EBITDA and Adjusted EBITDA margin reflects the decrease in incentive fees partially offset by decreased variable compensation.
  • Assets under management were $57.6 billion as of June 30, 2017, down one percent in USD (two percent in local currency) from $58.0 billion as of March 31, 2017. The net decrease in assets under management during the second quarter resulted from $4.0 billion of dispositions and withdrawals that were partially offset by $2.2 billion of acquisitions, $0.8 billion of net valuation increases and $0.6 billion of foreign currency increases.

About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. A Fortune 500 company, JLL helps real estate owners, occupiers and investors achieve their business ambitions. In 2016, JLL had revenue of $6.8 billion and fee revenue of $5.8 billion and, on behalf of clients, managed 4.4 billion square feet, or 409 million square meters, and completed sales acquisitions and finance transactions of approximately $145 billion. At the end of the second quarter of 2017, JLL had nearly 300 corporate offices, operations in over 80 countries and a global workforce of nearly 80,000. As of June 30, 2017, LaSalle Investment Management had $57.6 billion of real estate under asset management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit ir.jll.com.

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Live Webcast


Conference Call


We are offering a live webcast for
shareholders, analysts, and investment
professionals on Wednesday, August 2,
2017, at 9:00 a.m. Eastern.
Please use the following webcast link:

https://engage.vevent.com/rt/joneslanglasalleincorporated~080217


Management will also conduct a conference call. If you
are unable to join the live webcast and would like to
participate in the teleconference, please dial into one of
the following phone numbers five to ten minutes before
the start time (the passcode will be required):




 ■  United States callers:

 ■  International callers:

 ■  Passcode:

+1 844 231 9804

+1 402 858 7998

53929354








Supplemental Information


Audio Replay


Supplemental information regarding the
second quarter 2017 earnings call has
been posted to the Investor Relations
section of the company's website: ir.jll.com.


An audio replay will be available for download or stream.
Information and the link can be found on the company's
website: ir.jll.com.


If you have any questions, please contact JLL Investor Relations: JLLInvestorRelations@am.jll.com.

Cautionary Note Regarding Forward-Looking Statements

Statements in this news release regarding, among other things, future financial results and performance, achievements, and plans and objectives may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties, and other factors which may cause our actual results, performance, achievements, and plans and objectives to be materially different from those expressed or implied by such forward-looking statements. For additional information concerning risks, uncertainties, and other factors that could cause actual results to differ materially from those anticipated in forward-looking statements, and risks to our business in general, please refer to those factors discussed under "Business," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Quantitative and Qualitative Disclosures about Market Risk," and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2016, our Quarterly Report on Form 10-Q for the quarter ended March 31, 2017, and in other reports filed with the Securities and Exchange Commission (the "SEC"). Any forward-looking statements speak only as of the date of this release, and except to the extent required by applicable securities laws, we expressly disclaim any obligation or undertaking to publicly update or revise any forward-looking statements contained herein to reflect any change in our expectations or results, or any change in events.


JONES LANG LASALLE INCORPORATED

Consolidated Statements of Operations

(Unaudited)


Three Months Ended

June 30,


Six Months Ended

June 30,



(in millions, except share and per share data)

2017


2016


2017


2016









Revenue

$

1,834.7



$

1,603.6



$

3,449.9



$

2,940.4










Operating expenses:








Compensation and benefits

1,049.0



928.0



2,014.3



1,738.4


Operating, administrative and other

634.8



520.0



1,218.6



978.2


Depreciation and amortization

41.2



31.4



80.5



62.6


Restructuring and acquisition charges5

5.4



10.3



9.9



17.9


  Total operating expenses

1,730.4



1,489.7



3,323.3



2,797.1










Operating income

104.3



113.9



126.6



143.3










Interest expense, net of interest income

14.6



10.9



27.6



19.8


Equity earnings from real estate ventures

14.5



9.2



20.1



22.2


Other income



13.3





13.3










Income before income taxes and noncontrolling interest

104.2



125.5



119.1



159.0


Provision for income taxes

25.5



31.1



29.1



39.4


Net income

78.7



94.4



90.0



119.6










Net income (loss) attributable to noncontrolling interest

0.3



15.4



0.8



14.9


Net income attributable to the company

$

78.4



$

79.0



$

89.2



$

104.7










Dividends on unvested common stock, net of tax benefit

0.2



0.2



0.2



0.2


Net income attributable to common shareholders

$

78.2



$

78.8



$

89.0



$

104.5










Basic earnings per common share

$

1.73



$

1.75



$

1.97



$

2.32


Basic weighted average shares outstanding (in 000's)

45,288



45,121



45,273



45,108










Diluted earnings per common share

$

1.71



$

1.73



$

1.95



$

2.30


Diluted weighted average shares outstanding (in 000's)

45,782



45,574



45,728



45,498










EBITDA attributable to common shareholders1

$

159.5



$

152.2



$

226.2



$

226.3










Please reference attached financial statement notes.

 

JONES LANG LASALLE INCORPORATED

 Segment Operating Results

(Unaudited)


Three Months Ended

June 30,


Six Months Ended

June 30,



(in millions)

2017


2016


2017


2016

REAL ESTATE SERVICES
















AMERICAS








Revenue

$

791.8



$

672.9



$

1,514.6



$

1,276.4


Gross contract costs1

(43.9)



(43.4)



(91.0)



(92.2)


Net non-cash MSR and mortgage banking derivative
activity1

(6.7)



(2.7)



(4.0)



0.6


Total fee revenue

741.2



626.8



1,419.6



1,184.8










Operating expenses:








  Compensation, operating and administrative expenses

693.1



604.1



1,354.9



1,156.4


  Depreciation and amortization

23.7



18.2



47.2



37.0


  Total segment operating expenses

716.8



622.3



1,402.1



1,193.4


  Gross contract costs1

(43.9)



(43.4)



(91.0)



(92.2)


  Total fee-based segment operating expenses

672.9



578.9



1,311.1



1,101.2










Segment operating income

$

75.0



$

50.6



$

112.5



$

83.0


  Equity earnings

0.2



0.4



0.4



0.7


  Total segment income

$

75.2



$

51.0



$

112.9



$

83.7










Adjusted operating income

$

71.6



$

50.2



$

115.3



$

87.9










Adjusted EBITDA

$

91.8



$

66.2



$

155.4



$

120.8










EMEA








Revenue

$

592.4



$

481.3



$

1,091.9



$

850.7


Gross contract costs1

(153.3)



(148.2)



(293.1)



(261.1)


Total fee revenue

439.1



333.1



798.8



589.6










Operating expenses:








  Compensation, operating and administrative expenses

572.3



457.5



1,090.9



835.0


  Depreciation and amortization

11.1



8.3



21.4



16.0


  Total segment operating expenses

583.4



465.8



1,112.3



851.0


  Gross contract costs1

(153.3)



(148.2)



(293.1)



(261.1)


  Total fee-based segment operating expenses

430.1



317.6



819.2



589.9










Segment operating income (loss)

$

9.0



$

15.5



$

(20.4)



$

(0.3)


  Equity earnings (losses)







(0.1)


  Total segment income (loss)

$

9.0



$

15.5



$

(20.4)



$

(0.4)










Adjusted operating income (loss)

$

13.1



$

17.5



$

(12.8)



$

3.7










Adjusted EBITDA

$

20.1



$

23.2



$

0.9



$

15.6


 

 

 


Three Months Ended

June 30,


Six Months Ended

June 30,



(in millions)

2017


2016


2017


2016

ASIA PACIFIC








Revenue

$

377.7



$

322.4



$

682.4



$

585.8


Gross contract costs1

(98.1)



(66.6)



(169.2)



(124.2)


Total fee revenue

279.6



255.8



513.2



461.6










Operating expenses:








  Compensation, operating and administrative expenses

354.5



299.1



650.1



559.7


  Depreciation and amortization

5.7



4.2



10.5



8.2


  Total segment operating expenses

360.2



303.3



660.6



567.9


  Gross contract costs1

(98.1)



(66.6)



(169.2)



(124.2)


  Total fee-based segment operating expenses

262.1



236.7



491.4



443.7










Segment operating income

$

17.5



$

19.1



$

21.8



$

17.9


  Equity earnings (losses)

0.6



(0.1)



1.4




  Total segment income

$

18.1



$

19.0



$

23.2



$

17.9










Adjusted operating income

$

18.1



$

19.4



$

23.0



$

18.6










Adjusted EBITDA

$

23.8



$

23.2



$

33.7



$

26.2










LASALLE INVESTMENT MANAGEMENT








Revenue

$

72.8



$

127.0



$

161.0



$

227.5










Operating expenses:








  Compensation, operating and administrative expenses

63.9



87.4



137.0



165.7


  Depreciation and amortization

0.7



0.7



1.4



1.3


  Total segment operating expenses

64.6



88.1



138.4



167.0










Segment operating income

$

8.2



$

38.9



$

22.6



$

60.5


  Equity earnings

13.7



8.9



18.3



21.6


  Total segment income

$

21.9



$

47.8



$

40.9



$

82.1










Adjusted operating income

$

8.3



$

38.9



$

22.7



$

60.5










Adjusted EBITDA

$

22.6



$

47.4



$

42.2



$

82.5


















SEGMENT RECONCILING ITEMS








  Total fee revenue

$

1,532.7



$

1,342.7



$

2,892.6



$

2,463.5


  Gross contracts costs1

295.3



258.2



553.3



477.5


  Net non-cash MSR and mortgage banking derivative
  activity1

6.7



2.7



4.0



(0.6)


Total revenue

$

1,834.7



$

1,603.6



$

3,449.9



$

2,940.4


Total segment operating expenses before restructuring and
acquisition charges

1,725.0



1,479.4



3,313.4



2,779.2


Total segment operating income

$

109.7



$

124.2



$

136.5



$

161.2


Restructuring and acquisition charges5

5.4



10.3



9.9



17.9


Operating income

$

104.3



$

113.9



$

126.6



$

143.3










Please reference attached financial statement notes.

 

JONES LANG LASALLE INCORPORATED

Consolidated Balance Sheets

(Unaudited)





June 30,


December 31,

(in millions, except share and per share data)


2017


2016

ASSETS





Current assets:






Cash and cash equivalents


$

250.3



$

258.5



Trade receivables, net of allowances


1,718.2



1,870.6



Notes and other receivables


366.4



326.7



Warehouse receivables


798.5



600.8



Prepaid expenses


102.0



81.7



Other


163.9



161.4




Total current assets


3,399.3



3,299.7









Property and equipment, net of accumulated depreciation


512.9



501.0


Goodwill


2,668.9



2,579.3


Identified intangibles, net of accumulated amortization


302.0



295.0


Investments in real estate ventures


364.2



355.4


Long-term receivables


174.2



176.4


Deferred tax assets, net


189.1



180.9


Deferred compensation plans


208.0



173.0


Other


79.3



68.7




Total assets


$

7,897.9



$

7,629.4









LIABILITIES AND EQUITY




Current liabilities:





Accounts payable and accrued liabilities


$

802.0



$

846.2



Accrued compensation


740.8



1,064.7



Short-term borrowings


69.5



89.5



Deferred income


158.7



129.8



Deferred business acquisition obligations


29.0



28.6



Short-term earn-out liabilities


27.3



23.8



Warehouse facility


791.0



580.1



Other


233.5



203.6




Total current liabilities


2,851.8



2,966.3









Noncurrent liabilities:






Credit facility, net of debt issuance costs


657.6



905.4



Long-term debt, net of debt issuance costs


669.5



272.7



Deferred tax liabilities, net


24.4



21.5



Deferred compensation


222.5



201.1



Deferred business acquisition obligations


69.6