Stock Information

$148.81
NYSE: JLL
 Stock is Down 1.42 (0.95%)
Last Updated Nov 22 174:02 p.m. ET
Data provided by Nasdaq. Minimum 15 minutes delayed.

Investor Relations

Learn more about upcoming Investor Day

​News Release

Printer Friendly Version View printer-friendly version
<< Back
JLL Reports Strong Third-Quarter 2017 Performance
Revenue increase of 14 percent and diluted EPS increase of 80 percent to $1.89

CHICAGO, Nov. 6, 2017 /PRNewswire/ -- Jones Lang LaSalle Incorporated (NYSE: JLL) today reported strong operating performance for the third quarter of 2017, resulting in diluted earnings per share of $1.89 and adjusted diluted earnings per share1 of $1.96.

  • Revenue up 14 percent to $1.9 billion; fee revenue1 up 12 percent to $1.6 billion
    • Broad-based Real Estate Services and LaSalle revenue growth, primarily organic
    • Balanced expansion of annuity and transactional businesses
  • Margin improvement across all segments against solid market fundamentals
    • Accretive organic and M&A contributions, partially offset by Integral integration
    • Accelerated LaSalle incentive fees
  • Operating cash flows continue to strengthen; 20 percent reduction in net debt during the quarter
  • Semi-annual dividend of $0.37 per share; up 13 percent annually over 2016

CEO Comment:

"Solid organic growth and strong cash flows from operations contributed to our third-quarter performance," said Christian Ulbrich, JLL CEO. "Continued healthy market fundamentals in the global economy and many real estate markets worldwide provide a good foundation through the end of the year and into 2018."

Summary Financial Results


Three Months Ended


Nine Months Ended

September 30,

September 30,

   ($ in millions, except per share data)


2017

2016


2017

2016








Revenue


$

1,947.0


$

1,705.2



$

5,396.9


$

4,645.6


Fee Revenue1


1,624.6


1,444.3



4,517.2


3,907.8


Net Income


86.6


48.0



175.6


152.5


Adjusted Net Income1


89.6


64.7



193.5


189.8









Diluted Earnings per Share


$

1.89


$

1.05



$

3.84


$

3.35


Adjusted Diluted Earnings per Share1


$

1.96


$

1.42



$

4.23


$

4.17









Adjusted EBITDA1


$

168


$

127



$

400


$

372


Adjusted EBITDA, Real Estate Services


135


113



325


276


Adjusted EBITDA, LaSalle


33


14



75


96



(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
September 30,


%
Change
in USD


%
Change
in LC

2017


2016







Leasing

$

468.5



$

448.7



4

%


4

%

Capital Markets & Hotels

276.3



240.9



15



13


Capital Markets & Hotels Fee Revenue1

269.2



238.0



13



12


Property & Facility Management

601.1



503.0



20



19


Property & Facility Management Fee Revenue1

433.3



383.6



13



13


Project & Development Services

333.7



294.0



14



11


Project & Development Services Fee Revenue1

186.2



155.4



20



18


Advisory, Consulting and Other

165.3



138.3



20



18


Real Estate Services ("RES") revenue

$

1,844.9



$

1,624.9



14

%


13

%

LaSalle

102.1



80.3



27



28


Total revenue

$

1,947.0



$

1,705.2



14

%


13

%

Gross contract costs

(315.3)



(258.0)



22



20


Net non-cash MSR and mortgage banking derivative activity

(7.1)



(2.9)



n.m.



n.m.


Total fee revenue1

$

1,624.6



$

1,444.3



12

%


12

%

RES fee revenue

$

1,522.5



$

1,364.0



12

%


11

%

Operating income

$

118.1



$

71.0



66

%


65

%

Equity earnings

$

12.6



$

5.5



n.m.



n.m.


Adjusted EBITDA1

$

167.9



$

127.3



32

%


31

%

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 the company's 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 Third-Quarter 2017 Performance Highlights:

  • Consolidated revenue was $1.9 billion and consolidated fee revenue was $1.6 billion, representing broad-based increases of 13 percent and 12 percent, respectively, against the prior-year quarter. Revenue growth reflects expansion of both transactional and annuity businesses and was geographically led by EMEA and Asia Pacific. Organic expansion accounted for approximately 70 percent of the RES fee revenue increase.

  • Consolidated operating expenses, excluding restructuring and acquisition charges, were $1.8 billion, an increase of 12 percent compared with $1.6 billion in the prior year, and consolidated fee-based operating expenses, excluding restructuring and acquisition charges, were $1.5 billion, an increase of 11 percent compared with 2016. The increase in expenses was due to revenue growth as well as continued increases to investments in data, technology and people.

  • LaSalle's performance was driven by incentive fees, up $27.2 million compared with the prior year, earned on opportunistic dispositions of real estate assets on behalf of clients in Asia Pacific. LaSalle's results also reflect notable equity earnings, primarily from net valuation increases across its co-investment portfolio.

  • Net income attributable to common shareholders was $86.6 million compared with $48.0 million last year. Adjusted EBITDA was $167.9 million, compared with $127.3 million in 2016. Adjusted EBITDA margin, calculated on a fee-revenue basis, was 10.3 percent in USD and local currency, compared with 8.8 percent last year. The consolidated results reflect increased performance across all segments, with notable contributions from transactional businesses and LaSalle incentive fees, along with management initiatives to contain controllable expenses.

  • Diluted earnings per share were $1.89, compared with $1.05 last year. Adjusted diluted earnings per share were $1.96, compared with $1.42 in 2016.

Balance Sheet and Net Interest Expense:

  • Total net debt was $1.0 billion as of September 30, 2017, a decrease of $254.1 million from last quarter, primarily reflecting business performance and continued improvements in working capital management.

  • Net interest expense for the third quarter was $15.0 million, up from $12.4 million in 2016. The increase was driven by a higher effective interest rate on debt, partially offset by a net period-over-period decrease in average borrowings, attributable to an improvement of over $180 million in operating cash flows compared with the third quarter of 2016.

  • The company's Board of Directors declared a dividend of $0.37 per share that will be paid on December 15, 2017, to shareholders of record at the close of business on November 16, 2017. Total dividends declared for 2017 were $0.72 per share, an increase of 13 percent over dividends paid in 2016.

 

Consolidated

 

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

Nine Months Ended
September 30,


%
Change
in USD


%
Change
in LC

2017


2016



Leasing

$

1,319.3



$

1,183.9



11

%


12

%

Capital Markets & Hotels

702.2



630.6



11



13


Capital Markets & Hotels Fee Revenue1

691.1



628.3



10



12


Property & Facility Management

1,716.0



1,299.2



32



36


Property & Facility Management Fee Revenue1

1,267.1



964.8



31



35


Project & Development Services

935.0



843.4



11



12


Project & Development Services Fee Revenue1

515.3



442.3



17



17


Advisory, Consulting and Other

461.3



380.7



21



23


RES revenue

$

5,133.8



$

4,337.8



18

%


20

%

LaSalle

263.1



307.8



(15)



(13)


Total revenue

$

5,396.9



$

4,645.6



16

%


18

%

Gross contract costs

(868.6)



(735.5)



18



21


Net non-cash MSR and mortgage banking derivative activity

(11.1)



(2.3)



n.m.



n.m.


Total fee revenue1

$

4,517.2



$

3,907.8



16

%


17

%

RES fee revenue

$

4,254.1



$

3,600.0



18

%


20

%

Operating income

$

244.7



$

214.3



14

%


11

%

Equity earnings

$

32.7



$

27.7



18

%


18

%

Adjusted EBITDA1

$

400.0



$

372.1



7

%


6

%

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 the company's 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
September 30,


%
Change
in USD


%
Change
in LC

2017


2016



Leasing

$

345.1



$

335.3



3

%


3

%

Capital Markets & Hotels

114.6



112.5



2



2


Capital Markets & Hotels Fee Revenue1

107.5



109.6



(2)



(2)


Property & Facility Management

181.3



184.1



(2)



(2)


Property & Facility Management Fee Revenue1

144.9



142.2



2



2


Project & Development Services

97.8



96.8



1



1


Project & Development Services Fee Revenue1

93.8



86.1



9



8


Advisory, Consulting and Other

57.9



42.4



37



37


Total revenue

$

796.7



$

771.1



3

%


3

%

Gross contract costs

(40.4)



(52.6)



(23)



(23)


Net non-cash MSR and mortgage banking derivative activity

(7.1)



(2.9)



n.m.



n.m.


Total fee revenue1

$

749.2



$

715.6



5

%


5

%

Operating income

$

73.4



$

63.8



15

%


15

%

Equity earnings

$

0.1



$

0.1



%


100

%

Adjusted EBITDA1

$

90.5



$

82.2



10

%


10

%

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 the company's 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 Third-Quarter 2017 Performance Highlights:

  • Total revenue was $796.7 million and fee revenue was $749.2 million, representing increases of 3 percent and 5 percent, respectively, compared with 2016. The growth was led by Advisory, Consulting and Other, with contributions from Technology Solutions and the recently acquired U.S. valuations platform. Leasing continued its strong year-to-date performance in favorable market conditions, specifically in the U.S. Northwest, New York and New England markets.

  • Operating expenses were $723.3 million, up 2 percent from $707.3 million in 2016, and fee-based operating expenses, excluding restructuring and acquisition charges, were $682.9 million, up 4 percent from $654.7 million in 2016, both correlating with the increase in revenue.

  • Operating income was $73.4 million, up 15 percent from $63.8 million last year. Adjusted EBITDA was $90.5 million, compared with $82.2 million in 2016. Adjusted EBITDA margin, calculated on a fee-revenue basis, was 12.1 percent in USD and local currency, compared with 11.5 percent last year. The increase in Adjusted EBITDA margin was driven by changes in service mix augmented by management initiatives to contain controllable expenses.

 

Americas Real Estate Services

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

Nine Months Ended
September 30,


%
Change
in USD


%
Change
in LC

2017


2016



Leasing

$

1,003.1



$

884.3



13

%


13

%

Capital Markets & Hotels

318.1



282.3



13



13


Capital Markets & Hotels Fee Revenue1

307.0



280.0



10



10


Property & Facility Management

536.3



528.8



1



2


Property & Facility Management Fee Revenue1

421.8



400.9



5



5


Project & Development Services

285.7



243.0



18



17


Project & Development Services Fee Revenue1

268.8



226.1



19



19


Advisory, Consulting and Other

168.1



109.1



54



54


Total revenue

$

2,311.3



$

2,047.5



13

%


13

%

Gross contract costs

(131.4)



(144.8)



(9)



(8)


Net non-cash MSR and mortgage banking derivative activity

(11.1)



(2.3)



n.m.



n.m.


Total fee revenue1

$

2,168.8



$

1,900.4



14

%


14

%

Operating income

$

185.9



$

146.9



27

%


27

%

Equity earnings

$

0.5



$

0.8



(38)

%


(38)

%

Adjusted EBITDA1

$

245.9



$

203.0



21

%


21

%

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 the company's 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
September 30,


%
Change
in USD


%
Change
in LC

2017


2016



Leasing

$

70.4



$

63.2



11

%


9

%

Capital Markets & Hotels

107.3



87.4



23



19


Property & Facility Management

222.2



161.7



37



37


Property & Facility Management Fee Revenue1

161.0



127.0



27



27


Project & Development Services

170.1



154.1



10



6


Project & Development Services Fee Revenue1

59.7



42.6



40



36


Advisory, Consulting and Other

65.2



56.3



16



13


Total revenue

$

635.2



$

522.7



22

%


19

%

Gross contract costs

(171.6)



(146.2)



17



14


Total fee revenue1

$

463.6



$

376.5



23

%


21

%

Operating income (loss)

$

2.2



$

(0.8)



n.m.



n.m.


Equity earnings

$



$



%


%

Adjusted EBITDA1

$

13.9



$

8.5



64

%


47

%

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 Third-Quarter 2017 Performance Highlights:

  • EMEA revenue was $635.2 million and fee revenue was $463.6 million, reflecting increases of 19 percent and 21 percent, respectively, from last year, with growth across all service lines. The largest source of revenue expansion was in Property & Facility Management, reflecting incremental fee revenue from the August 2016 acquisition of Integral UK Ltd. ("Integral"). Strong growth in Capital Markets & Hotels reflects notable contributions from investment sales in Finland, the UK and Germany. Project & Development Services fee revenue growth was most prominent in MENA and France.

  • Operating expenses were $633.0 million, up 19 percent from $523.5 million in 2016. Fee-based operating expenses, excluding restructuring and acquisition charges, were $461.4 million, up 21 percent from $377.4 million last year, due to incremental fee-based operating expenses relating to Integral along with continued increases to investments in data, technology and people.

  • Operating income was $2.2 million, compared with an operating loss of $0.8 million in the prior year. Adjusted EBITDA was $13.9 million, an increase from $8.5 million last year. Adjusted EBITDA margin, calculated on a fee-revenue basis, was 3.0 percent in USD (2.7 percent in local currency), compared with 2.3 percent last year. The increase in profitability reflects revenue performance for the quarter and management initiatives to contain expenses, partially offset by continued integration of Integral.

 

EMEA Real Estate Services
 
   ($ in millions, "LC" = local currency)

Nine Months Ended
September 30,


%
Change
in USD


%
Change
in LC

2017


2016



Leasing

$

184.4



$

171.3



8

%


11

%

Capital Markets & Hotels

266.5



245.4



9



13


Property & Facility Management

628.5



314.0



100



n.m.


Property & Facility Management Fee Revenue1

479.5



238.5



n.m.



n.m.


Project & Development Services

471.7



478.0



(1)



1


Project & Development Services Fee Revenue1

156.0



146.2



7



9


Advisory, Consulting and Other

176.0



164.7



7



11


Total revenue

$

1,727.1



$

1,373.4



26

%


32

%

Gross contract costs

(464.7)



(407.3)



14



18


Total fee revenue1

$

1,262.4



$

966.1



31

%


37

%

Operating loss

$

(18.2)



$

(1.1)



n.m.



n.m.


Equity losses

$



$

(0.1)



100

%


100

%

Adjusted EBITDA1

$

14.8



$

24.1



(39)

%


(61)

%

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
September 30,


%
Change
in USD


%
Change
in LC

2017


2016



Leasing

$

53.0



$

50.2



6

%


5

%

Capital Markets & Hotels

54.4



41.0



33



33


Property & Facility Management

197.6



157.2



26



25


Property & Facility Management Fee Revenue1

127.4



114.4



11



11


Project & Development Services

65.8



43.1



53



52


Project & Development Services Fee Revenue1

32.7



26.7



22



22


Advisory, Consulting and Other

42.2



39.6



7



6


Total revenue

$

413.0



$

331.1



25

%


24

%

Gross contract costs

(103.3)



(59.2)



74



73


Total fee revenue1

$

309.7



$

271.9



14

%


13

%

Operating income

$

24.2



$

17.6



38

%


36

%

Equity earnings

$

0.9



$

0.5



80

%


80

%

Adjusted EBITDA1

$

30.3



$

22.3



36

%


35

%

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 Third-Quarter 2017 Performance Highlights:

  • Asia Pacific revenue was $413.0 million, an increase of 24 percent from 2016; fee revenue was $309.7 million, an increase of 13 percent from last year. Fee revenue growth reflects strong performance in Capital Markets & Hotels and Property & Facility Management and was geographically led by Australia, Greater China and Japan.

  • Operating expenses were $388.8 million, up 23 percent from $313.5 million last year. Fee-based operating expenses, excluding restructuring and acquisition charges, were $285.5 million, up 12 percent from $254.3 million last year. The increase in expenses correlated with the revenue growth.

  • Operating income was $24.2 million, compared with $17.6 million in 2016. Adjusted EBITDA was $30.3 million, an increase from $22.3 million in 2016. Adjusted EBITDA margin, calculated on a fee-revenue basis, was 9.8 percent in USD and local currency, compared with 8.2 percent last year, reflecting strong organic growth and higher margin transactional businesses during the quarter coupled with ongoing cost containment initiatives.

 

Asia Pacific Real Estate Services
 
   ($ in millions, "LC" = local currency)

Nine Months Ended
September 30,


%
Change
in USD


%
Change
in LC

2017


2016



Leasing

$

131.8



$

128.3



3

%


3

%

Capital Markets & Hotels

117.6



102.9



14



15


Property & Facility Management

551.2



456.4



21



20


Property & Facility Management Fee Revenue1

365.8



325.4



12



12


Project & Development Services

177.6



122.4



45



45


Project & Development Services Fee Revenue1

90.5



70.0



29



29


Advisory, Consulting and Other

117.2



106.9



10



9


Total revenue

$

1,095.4



$

916.9



19

%


19

%

Gross contract costs

(272.5)



(183.4)



49



48


Total fee revenue1

$

822.9



$

733.5



12

%


12

%

Operating income

$

46.0



$

35.5



30

%


26

%

Equity earnings

$

2.3



$

0.5



n.m.



n.m.


Adjusted EBITDA1

$

64.0



$

48.5



32

%


30

%

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
September 30,


%
Change
in USD


%
Change
in LC

2017


2016



Advisory Fees

$

63.3



$

66.4



(5)

%


(5)

%

Transaction Fees & Other

5.6



7.9



(29)



(29)


Incentive Fees

33.2



6.0



n.m.



n.m.


Total revenue

$

102.1



$

80.3



27

%


28

%

Operating income

$

21.7



$

8.4



n.m.



n.m.


Equity earnings

$

11.6



$

4.9



n.m.



n.m.


Adjusted EBITDA1

$

33.3



$

14.1



n.m.



n.m.


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



LaSalle

 

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

Nine Months Ended
September 30,


%
Change
in USD


%
Change
in LC

2017


2016



Advisory Fees

$

190.3



$

195.0



(2)

%


%

Transaction Fees & Other

24.3



40.8



(40)



(40)


Incentive Fees

48.5



72.0



(33)



(31)


Total revenue

$

263.1



$

307.8



(15)

%


(13)

%

Operating income

$

44.3



$

68.9



(36)

%


(33)

%

Equity earnings

$

29.9



$

26.5



13

%


12

%

Adjusted EBITDA1

$

75.5



$

96.6



(22)

%


(20)

%

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 Third-Quarter 2017 Performance Highlights:

  • Total revenue of $102.1 million increased 28 percent from 2016 due to incentive fees earned on opportunistic dispositions of real estate assets on behalf of clients in Asia Pacific.

  • Equity earnings were $11.6 million, compared with $4.9 million in 2016. Both periods were driven by net valuation increases to investments in Europe and Asia.

  • Operating expenses were $80.4 million, up 12 percent from $71.9 million last year, reflecting the increase in variable compensation expense associated with the noted increase in incentive fees, offset by management initiatives to contain controllable expenses.

  • Operating income was $21.7 million, an increase from $8.4 million in the prior year. Adjusted EBITDA was $33.3 million, compared with $14.1 million last year. Adjusted EBITDA margin was 32.6 percent in USD (32.9 percent in local currency), compared with 17.6 percent in the prior-year period.

  • Assets under management were $59.0 billion as of September 30, 2017, an increase of 2 percent in USD (1 percent in local currency) from $57.6 billion as of June 30, 2017. The net increase in assets under management during the third quarter resulted from $1.4 billion of acquisitions, $0.9 billion of net valuation increases and $0.9 billion of foreign currency increases, partially offset by $1.8 billion of dispositions and withdrawals.

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 third quarter of 2017, JLL had nearly 300 corporate offices, operations in over 80 countries and a global workforce of over 80,000. As of September 30, 2017, LaSalle Investment Management had $59.0 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.

Connect with us     
https://www.linkedin.com/company/jll  
https://www.facebook.com/jll/  
https://twitter.com/jll  
https://plus.google.com/+joneslanglasalle

Live Webcast


Conference Call


Management will offer a live webcast for
shareholders, analysts, and investment
professionals on Monday, November 6,
2017, at 9:00 a.m. Eastern.                             
Please use the following webcast link:


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):


https://engage.vevent.com/rt/joneslanglasalleincorporated~110617


 ■  United States callers:

 ■  International callers:

 ■  Passcode:

+1 844 231 9804

+1 402 858 7998

99488866









Supplemental Information


Audio Replay


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


An audio replay will be available for download or stream.
Information and the link can be found on JLL'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, plans and objectives, and dividend payments 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 the company's actual results, performance, achievements, plans and objectives, and dividend payments 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 the company's 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 the company's Annual Report on Form 10-K for the year ended December 31, 2016, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2017, and June 30, 2017, and other reports filed with the Securities and Exchange Commission (the "SEC"). There can be no assurance that future dividends will be declared since the actual declaration of future dividends, and the establishment of record and payment dates, remains subject to final determination by the company's Board of Directors. Any forward-looking statements speak only as of the date of this release, and except to the extent required by applicable securities laws, management expressly disclaims any obligation or undertaking to publicly update or revise any forward-looking statements contained herein to reflect any change in expectations or results, or any change in events.


JONES LANG LASALLE INCORPORATED

Consolidated Statements of Operations

(Unaudited)



Three Months Ended
September 30,


Nine Months Ended
September 30,



(in millions, except share and per share data)

2017


2016


2017


2016









Revenue

$

1,947.0



$

1,705.2



$

5,396.9



$

4,645.6










Operating expenses:








Compensation and benefits

1,132.3



1,012.0



3,146.6



2,750.4


Operating, administrative and other

651.4



568.3



1,870.0



1,546.5


Depreciation and amortization

41.8



35.9



122.3



98.5


Restructuring and acquisition charges5

3.4



18.0



13.3



35.9


     Total operating expenses

1,828.9



1,634.2



5,152.2



4,431.3










Operating income

118.1



71.0



244.7



214.3










Interest expense, net of interest income

15.0



12.4



42.6



32.2


Equity earnings from real estate ventures

12.6



5.5



32.7



27.7


Other income







13.3










Income before income taxes and noncontrolling interest

115.7



64.1



234.8



223.1


Provision for income taxes

28.2



15.9



57.3



55.3


Net income

87.5



48.2



177.5



167.8










Net income (loss) attributable to noncontrolling interest

0.9



0.2



1.7



15.1


Net income attributable to the company

$

86.6



$

48.0



$

175.8



$

152.7










Dividends on unvested common stock, net of tax benefit





0.2



0.2


Net income attributable to common shareholders

$

86.6



$

48.0



$

175.6



$

152.5










Basic earnings per common share

$

1.91



$

1.06



$

3.88



$

3.38


Basic weighted average shares outstanding (in 000's)

45,349



45,188



45,299



45,135










Diluted earnings per common share

$

1.89



$

1.05



$

3.84



$

3.35


Diluted weighted average shares outstanding (in 000's)

45,814



45,612



45,729



45,515










EBITDA attributable to common shareholders1

$

171.6



$

112.2



$

397.8



$

338.5










Please reference attached financial statement notes.

 

 

JONES LANG LASALLE INCORPORATED

 Segment Operating Results

(Unaudited)



Three Months Ended
September 30,


Nine Months Ended
September 30,



(in millions)

2017


2016


2017


2016

REAL ESTATE SERVICES
















AMERICAS








Revenue

$

796.7



$

771.1



$

2,311.3



$

2,047.5


Gross contract costs1

(40.4)



(52.6)



(131.4)



(144.8)


Net non-cash MSR and mortgage banking derivative activity1

(7.1)



(2.9)



(11.1)



(2.3)


Total fee revenue

749.2



715.6



2,168.8



1,900.4










Operating expenses:








     Compensation, operating and administrative expenses

699.1



686.0



2,054.0



1,842.2


     Depreciation and amortization

24.2



21.3



71.4



58.4


     Total segment operating expenses

723.3



707.3



2,125.4



1,900.6


     Gross contract costs1

(40.4)



(52.6)



(131.4)



(144.8)


     Total fee-based segment operating expenses

682.9



654.7



1,994.0



1,755.8










Segment operating income

$

73.4



$

63.8



$

185.9



$

146.9


     Equity earnings

0.1



0.1



0.5



0.8


     Total segment income

$

73.5



$

63.9



$

186.4



$

147.7










Adjusted operating income1

$

69.8



$

64.4



$

185.1



$

152.3










Adjusted EBITDA1

$

90.5



$

82.2



$

245.9



$

203.0










EMEA








     Revenue

$

635.2



$

522.7



$

1,727.1



$

1,373.4


     Gross contract costs1

(171.6)



(146.2)



(464.7)



(407.3)


     Total fee revenue

463.6



376.5



1,262.4



966.1










Operating expenses:








     Compensation, operating and administrative expenses

621.4



513.9



1,712.3



1,348.9


     Depreciation and amortization

11.6



9.6



33.0



25.6


     Total segment operating expenses

633.0



523.5



1,745.3



1,374.5


     Gross contract costs1

(171.6)



(146.2)



(464.7)



(407.3)


     Total fee-based segment operating expenses

461.4



377.3



1,280.6



967.2










Segment operating income (loss)

$

2.2



$

(0.8)



$

(18.2)



$

(1.1)


     Equity losses







(0.1)


     Total segment income (loss)

$

2.2



$

(0.8)



$

(18.2)



$

(1.2)










Adjusted operating income (loss)1

$

5.8



$

2.2



$

(7.0)



$

5.9










Adjusted EBITDA1

$

13.9



$

8.5



$

14.8



$

24.1


 

 


Three Months Ended
September 30,


Nine Months Ended
September 30,



(in millions)

2017


2016


2017


2016

ASIA PACIFIC








     Revenue

$

413.0



$

331.1



$

1,095.4



$

916.9


     Gross contract costs1

(103.3)



(59.2)



(272.5)



(183.4)


     Total fee revenue

309.7



271.9



822.9



733.5










Operating expenses:








     Compensation, operating and administrative expenses

383.6



309.3



1,033.7



869.0


     Depreciation and amortization

5.2



4.2



15.7



12.4


     Total segment operating expenses

388.8



313.5



1,049.4



881.4


     Gross contract costs1

(103.3)



(59.2)



(272.5)



(183.4)


     Total fee-based segment operating expenses

285.5



254.3



776.9



698.0










Segment operating income

$

24.2



$

17.6



$

46.0



$

35.5


     Equity earnings

0.9



0.5



2.3



0.5


     Total segment income

$

25.1



$

18.1



$

48.3



$

36.0










Adjusted operating income1

$

24.8



$

18.2



$

47.8



$

36.8










Adjusted EBITDA1

$

30.3



$

22.3



$

64.0



$

48.5










LASALLE INVESTMENT MANAGEMENT








     Revenue

$

102.1



$

80.3



$

263.1



$

307.8










Operating expenses:








     Compensation, operating and administrative expenses

79.6



71.1



216.6



236.8


     Depreciation and amortization

0.8



0.8



2.2



2.1


     Total segment operating expenses

80.4



71.9



218.8



238.9










Segment operating income

$

21.7



$

8.4



$

44.3



$

68.9


     Equity earnings

11.6



4.9



29.9



26.5


     Total segment income

$

33.3



$

13.3



$

74.2



$

95.4










Adjusted operating income1

$

21.6



$

8.4



$

44.3



$

68.9










Adjusted EBITDA1

$

33.3



$

14.1



$

75.5



$

96.6


















SEGMENT RECONCILING ITEMS








     Total fee revenue

$

1,624.6



$

1,444.3



$

4,517.2



$

3,907.8


     Gross contracts costs1

315.3



258.0



868.6



735.5


     Net non-cash MSR and mortgage banking derivative 
     activity1

7.1



2.9



11.1



2.3


Total revenue

$

1,947.0



$

1,705.2



$

5,396.9



$

4,645.6


Total segment operating expenses before restructuring
and acquisition charges

1,825.5



1,616.2



5,138.9



4,395.4


Total segment operating income

$

121.5



$

89.0



$

258.0



$

250.2


Restructuring and acquisition charges5

3.4



18.0



13.3



35.9


Operating income

$

118.1



$

71.0



$

244.7



$

214.3










Please reference attached financial statement notes.

 

 


JONES LANG LASALLE INCORPORATED
Consolidated Balance Sheets
(Unaudited)












September 30,


December 31,

(in millions, except share and per share data)


2017


2016

ASSETS





Current assets:






Cash and cash equivalents


$

277.9



$

258.5



Trade receivables, net of allowances


1,779.1



1,870.6



Notes and other receivables


346.4



326.7



Warehouse receivables


337.8



600.8



Prepaid expenses


96.1



81.7



Other


149.0



161.4




Total current assets


2,986.3



3,299.7









Property and equipment, net of accumulated depreciation


516.6



501.0


Goodwill


2,701.3



2,579.3


Identified intangibles, net of accumulated amortization


307.4



295.0


Investments in real estate ventures


372.5



355.4


Long-term receivables


168.6



176.4


Deferred tax assets, net


190.9



180.9


Deferred compensation plans


218.5



173.0


Other


92.2



68.7




Total assets


$

7,554.3



$

7,629.4









LIABILITIES AND EQUITY




Current liabilities:





Accounts payable and accrued liabilities


$

793.6



$

846.2



Accrued compensation


930.8



1,064.7



Short-term borrowings


64.2



89.5



Deferred income


179.3



129.8



Deferred business acquisition obligations


33.5



28.6



Short-term earn-out liabilities


33.2



23.8



Warehouse facility


331.9



580.1



Other


215.9



203.6




Total current liabilities


2,582.4



2,966.3