United States
Securities and Exchange Commission
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of report (Date of earliest event reported): February 3, 2016
Jones Lang LaSalle Incorporated
(Exact name of registrant as specified in its charter)
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| | | | |
Maryland | | 001-13145 | | 36-4150422 |
(State or other jurisdiction | | (Commission File Number) | | (I.R.S. Employer Identification No.) |
of incorporation or organization) | | | | |
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| | |
200 East Randolph Drive, Chicago, IL | | 60601 |
(Address of principal executive offices) | | (Zip Code) |
Registrant’s telephone number, including area code: 312-782-5800
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): |
| |
[ ] | Written communications pursuant to Rule 425 under Securities Act (17 CFR 230.425) |
[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Condition.
On February 3, 2015, Jones Lang LaSalle Incorporated issued a press release and supporting supplemental information announcing its financial results for the fourth quarter ended December 31, 2015. The full text of the press release and supplemental information are attached as Exhibits 99.1 and 99.2 to this Current Report on Form 8-K and are incorporated by reference herein.
The information contained in this Current Report, including the exhibits, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
The following exhibits are included with this Report:
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| |
99.1. | News release issued by Jones Lang LaSalle Incorporated on February 3, 2016 announcing its financial |
| results for the fourth quarter ended December 31, 2015. |
| |
99.2. | Supplemental Information to Fourth Quarter 2015 Earnings Call issued on February 3, 2016. |
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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| | | |
| Dated: February 3, 2016 | |
| Jones Lang LaSalle Incorporated | |
| | | |
| By: /s/ Christie B. Kelly | |
| Name: Christie B. Kelly | |
| Title: Executive Vice President and Chief Financial Officer | |
EXHIBIT INDEX
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| |
99.1. | News release issued by Jones Lang LaSalle Incorporated on February 3, 2016 announcing its financial |
| results for the fourth quarter ended December 31, 2015. |
| |
99.2. | Supplemental Information to Fourth Quarter 2015 Earnings Call issued on February 3, 2016. |
JLL Reports Record Fourth Quarter and Full-Year 2015 Results
Full-year gross revenue up 18% to $6.0 billion; fee revenue up 17% to $5.2 billion
Adjusted earnings per share of $10.01 up 26% reflecting $0.87 currency headwind
CHICAGO, February 3, 2016 -- Jones Lang LaSalle Incorporated (NYSE: JLL) today reported strong, diversified revenue increases for the full year and fourth quarter of 2015. Adjusted earnings per share were $4.53 for the fourth quarter, up 14 percent reflecting a $0.42 currency headwind. Fourth quarter gross revenue was up 15 percent to $1.9 billion; fee revenue of $1.7 billion was up 14 percent. All percentage variances are calculated on a local currency basis.
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• | Broad-based revenue and margin expansion across all geographic segments and LaSalle |
| |
• | Acquisitions and investments continue to fuel profitable growth |
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• | Corporate Solutions posts record year of business wins globally |
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• | LaSalle Investment Management continues to deliver strong performance and capital raise momentum |
| |
• | Moody's raises outlook on JLL's Baa2 investment grade balance sheet to Positive |
CEO Comment:
“An excellent fourth quarter completed another year of record revenue and profit,” said Colin Dyer, President and CEO of JLL. “Growth will continue in 2016, driven by the caliber of our people, targeted investments and strategic acquisitions, all combining to expand our services and build the long-term value of our company,” Dyer added.
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Summary Financial Results ($ in millions, except per share data) | | Three Months Ended | | Twelve Months Ended |
December 31, | December 31, |
| | 2015 | 2014 | | 2015 | 2014 |
| | | | | | |
Revenue | | $ | 1,887 |
| $ | 1,749 |
| | $ | 5,966 |
| $ | 5,430 |
|
Fee Revenue1 | | $ | 1,666 |
| $ | 1,557 |
| | $ | 5,164 |
| $ | 4,702 |
|
Adjusted Net Income2 | | $ | 206 |
| $ | 196 |
| | $ | 455 |
| $ | 392 |
|
U.S. GAAP Net Income2 | | $ | 196 |
| $ | 194 |
| | $ | 438 |
| $ | 386 |
|
Adjusted Earnings per Share2 | | $ | 4.53 |
| $ | 4.33 |
| | $ | 10.01 |
| $ | 8.65 |
|
Earnings per Share | | $ | 4.31 |
| $ | 4.28 |
| | $ | 9.65 |
| $ | 8.52 |
|
Adjusted EBITDA3 | | $ | 312 |
| $ | 300 |
| | $ | 749 |
| $ | 651 |
|
Adjusted EBITDA, Real Estate Services | | $ | 282 |
| $ | 274 |
| | $ | 589 |
| $ | 517 |
|
Adjusted EBITDA, LaSalle Investment Management | | $ | 30 |
| $ | 26 |
| | $ | 160 |
| $ | 134 |
|
See Financial Statement Notes (1), (2) and (3) following the Financial Statements in this news release |
JLL Reports Fourth-Quarter 2015 Results - Page 2
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| | | | | | | | | | |
Consolidated Revenue ($ in millions, “LC” = local currency) | Three Months Ended December 31, | | % Change in USD | | % Change in LC |
| 2015 | 2014 | | |
| | | | | | |
Real Estate Services (“RES”) | | | | | | |
Leasing | $ | 566.0 |
| $ | 536.8 |
| | 5% | | 12% |
Capital Markets & Hotels | 331.9 |
| 330.1 |
| | 1% | | 7% |
Property & Facility Management Fee Revenue1 | 337.5 |
| 305.8 |
| | 10% | | 17% |
Property & Facility Management | 441.6 |
| 428.6 |
| | 3% | | 10% |
Project & Development Services Fee Revenue1 | 161.4 |
| 131.6 |
| | 23% | | 31% |
Project & Development Services | 278.7 |
| 200.4 |
| | 39% | | 50% |
Advisory, Consulting and Other | 172.2 |
| 161.1 |
| | 7% | | 14% |
Total RES Fee Revenue1 | $ | 1,569.0 |
| $ | 1,465.4 |
| | 7% | | 14% |
Total RES Revenue | $ | 1,790.4 |
| $ | 1,657.0 |
| | 8% | | 15% |
| | | | | | |
LaSalle Investment Management ("LaSalle") | | | | | | |
Advisory Fees | $ | 61.6 |
| $ | 58.8 |
| | 5% | | 9% |
Transaction Fees & Other | 11.2 |
| 7.3 |
| | 53% | | 61% |
Incentive Fees | 24.2 |
| 25.9 |
| | (7)% | | (5)% |
Total LaSalle Revenue | $ | 97.0 |
| $ | 92.0 |
| | 5% | | 10% |
| | | | | | |
Total Firm Fee Revenue1 | $ | 1,666.0 |
| $ | 1,557.4 |
| | 7% | | 14% |
Total Firm Revenue | $ | 1,887.4 |
| $ | 1,749.0 |
| | 8% | | 15% |
| | | | | | |
n.m. - not meaningful | | | | | | |
JLL Reports Fourth-Quarter 2015 Results - Page 3
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| | | | | | | | | | |
Consolidated Revenue ($ in millions, “LC” = local currency) | Twelve Months Ended December 31, | | % Change in USD | | % Change in LC |
2015 | 2014 | | |
| | | | | | |
Real Estate Services (“RES”) | | | | | | |
Leasing | $ | 1,669.5 |
| $ | 1,540.0 |
| | 8% | | 13% |
Capital Markets & Hotels | 955.8 |
| 822.9 |
| | 16% | | 25% |
Property & Facility Management Fee Revenue1 | 1,128.2 |
| 1,070.6 |
| | 5% | | 13% |
Property & Facility Management | 1,557.4 |
| 1,523.7 |
| | 2% | | 10% |
Project & Development Services Fee Revenue1 | 510.0 |
| 434.5 |
| | 17% | | 26% |
Project & Development Services | 882.1 |
| 709.3 |
| | 24% | | 38% |
Advisory, Consulting and Other | 503.9 |
| 465.6 |
| | 8% | | 18% |
Total RES Fee Revenue1 | $ | 4,767.4 |
| $ | 4,333.6 |
| | 10% | | 17% |
Total RES Revenue | $ | 5,568.7 |
| $ | 5,061.5 |
| | 10% | | 18% |
| | | | | | |
LaSalle Investment Management ("LaSalle") | | | | | | |
Advisory Fees | $ | 242.9 |
| $ | 235.6 |
| | 3% | | 10% |
Transaction Fees & Other | 30.6 |
| 27.2 |
| | 13% | | 22% |
Incentive Fees | 123.5 |
| 105.3 |
| | 17% | | 27% |
Total LaSalle Revenue | $ | 397.0 |
| $ | 368.1 |
| | 8% | | 16% |
| | | | | | |
Total Firm Fee Revenue1 | $ | 5,164.4 |
| $ | 4,701.7 |
| | 10% | | 17% |
Total Firm Revenue | $ | 5,965.7 |
| $ | 5,429.6 |
| | 10% | | 18% |
| | | | | | |
n.m. - not meaningful | | | | | | |
Consolidated Performance Highlights:
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• | Consolidated fee revenue for the year was $5.2 billion, up 17 percent from 2014. Consolidated fee revenue for the fourth quarter was $1.7 billion, up 14 percent from 2014. Growth for the year was broad-based, with double-digit increases across all service lines, geographic segments and LaSalle. |
| |
• | Consolidated fee-based operating expenses, excluding restructuring and acquisition charges, were $4.6 billion for the year, compared with $4.2 billion last year, an increase of 17 percent. Consolidated fee-based operating expenses, excluding restructuring and acquisition charges, were $1.4 billion for the fourth quarter, compared with $1.3 billion last year, an increase of 15 percent. |
| |
• | LaSalle Investment Management generated annual double-digit growth across all three of its major fee categories, with total revenue increasing 16 percent. LaSalle also recognized significant equity earnings from net valuation increases and investment dispositions. |
| |
• | Adjusted EBITDA margin calculated on a fee revenue basis was 14.6 percent in local currency for the year, compared with 13.8 percent last year. Adjusted EBITDA margin calculated on a fee revenue basis was 19.2 percent in local currency for the fourth quarter, in-line with last year. |
| |
• | Adjusted earnings per share reached $10.01 for the year, up 26 percent from last year. Foreign exchange reduced adjusted earnings per share for the year by approximately $0.87. Adjusted earnings per share reached $4.53 for the quarter, up 14 percent from the same period last year. Foreign exchange reduced adjusted earnings per share in the quarter by approximately $0.42. |
JLL Reports Fourth-Quarter 2015 Results - Page 4
Balance Sheet and Net Interest Expense:
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• | In December 2015 Moody's revised its outlook on the firm to Positive, reflecting the firm's strong cash generation. The firm's investment grade balance sheet is positioned for growth. |
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• | The firm's total net debt was $461 million at year end, an increase of $298 million from last year, reflecting the pace of the firm's continued investments and acquisitions. |
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• | Net interest expense for the year was $28.1 million, down from $28.3 million in 2014, due to slightly lower average borrowings compared with last year. |
JLL Reports Fourth-Quarter 2015 Results - Page 5
Business Segment Performance Highlights
Americas Real Estate Services
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| | | | | | | | | | |
Americas Revenue ($ in millions, “LC” = local currency) | Three Months Ended December 31, | | % Change in USD | | % Change in LC |
2015 | 2014 | | |
| | | | | | |
Leasing | $ | 374.9 |
| $ | 345.3 |
| | 9% | | 13% |
Capital Markets & Hotels | 105.4 |
| 94.1 |
| | 12% | | 13% |
Property & Facility Management Fee Revenue1 | 154.1 |
| 139.0 |
| | 11% | | 15% |
Property & Facility Management | 206.7 |
| 195.3 |
| | 6% | | 12% |
Project & Development Services Fee Revenue1 | 81.5 |
| 69.5 |
| | 17% | | 21% |
Project & Development Services | 83.0 |
| 70.7 |
| | 17% | | 21% |
Advisory, Consulting and Other | 44.5 |
| 40.2 |
| | 11% | | 13% |
Operating Revenue | $ | 760.4 |
| $ | 688.1 |
| | 11% | | 14% |
| | | | | | |
Equity Earnings | 0.5 |
| 0.3 |
| | 67% | | 63% |
Total Segment Fee Revenue1 | $ | 760.9 |
| $ | 688.4 |
| | 11% | | 14% |
Total Segment Revenue | $ | 815.0 |
| $ | 745.9 |
| | 9% | | 14% |
| | | | | | |
n.m. - not meaningful
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Americas Revenue
($ in millions, “LC” = local currency) | Twelve Months Ended December 31, | | % Change in USD | | % Change in LC |
2015 | 2014 | | |
| | | | | | |
Leasing | $ | 1,165.6 |
| $ | 1,039.5 |
| | 12% | | 14% |
Capital Markets & Hotels | 331.6 |
| 266.6 |
| | 24% | | 25% |
Property & Facility Management Fee Revenue1 | 499.3 |
| 454.3 |
| | 10% | | 14% |
Property & Facility Management | 706.1 |
| 661.9 |
| | 7% | | 12% |
Project & Development Services Fee Revenue1 | 258.0 |
| 222.7 |
| | 16% | | 20% |
Project & Development Services | 263.3 |
| 225.5 |
| | 17% | | 21% |
Advisory, Consulting and Other | 138.9 |
| 125.6 |
| | 11% | | 13% |
Operating Revenue | $ | 2,393.4 |
| $ | 2,108.7 |
| | 14% | | 16% |
| | | | | | |
Equity Earnings | 5.9 |
| 0.8 |
| | n.m. | | n.m. |
Total Segment Fee Revenue1 | $ | 2,399.3 |
| $ | 2,109.5 |
| | 14% | | 16% |
Total Segment Revenue | $ | 2,611.4 |
| $ | 2,319.9 |
| | 13% | | 16% |
| | | | | | |
n.m. - not meaningful
| | | | | | |
JLL Reports Fourth-Quarter 2015 Results - Page 6
Americas Performance Highlights:
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• | Fee revenue for the year was $2.4 billion, an increase of 16 percent from last year. Revenue growth compared with last year was strong across the platform, with double-digit growth across all service lines led by Leasing, Capital Markets & Hotels, Property & Facility Management and Project & Development Services. Fee revenue for the fourth quarter was $761 million, an increase of 14 percent from 2014. |
| |
• | Fee-based operating expenses for the year, excluding restructuring and acquisition charges, were $2.1 billion, up from $1.9 billion 2014. Fee-based operating expenses, excluding restructuring and acquisition charges, were $653 million for the quarter, up from $581 million last year. |
| |
• | Operating income was $251 million for the year, compared with $219 million in 2014. Fourth quarter operating income was $108 million, in-line with 2014. |
| |
• | Adjusted EBITDA was $314 million for the year, up from $275 million in 2014. Adjusted EBITDA margin, calculated on a fee revenue basis, was 13.3 percent in local currency for 2015, compared with 13.0 percent in 2014. Adjusted EBITDA was $125 million for the fourth quarter, compared with $124 million last year. Adjusted EBITDA margin, for the fourth quarter, calculated on a fee revenue basis, was 17.3 percent in local currency, compared with 18.1 percent in 2014. |
JLL Reports Fourth-Quarter 2015 Results - Page 7
EMEA Real Estate Services
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EMEA Revenue ($ in millions, “LC” = local currency) | Three Months Ended December 31, | | % Change in USD | | % Change in LC |
2015 | 2014 | | |
| | | | | | |
Leasing | $ | 103.4 |
| $ | 106.9 |
| | (3)% | | 7% |
Capital Markets & Hotels | 176.1 |
| 173.2 |
| | 2% | | 11% |
Property & Facility Management Fee Revenue1 | 68.1 |
| 65.7 |
| | 4% | | 13% |
Property & Facility Management | 85.2 |
| 91.6 |
| | (7)% | | 1% |
Project & Development Services Fee Revenue1 | 58.7 |
| 41.2 |
| | 42% | | 57% |
Project & Development Services | 163.0 |
| 96.8 |
| | 68% | | 85% |
Advisory, Consulting and Other | 86.2 |
| 88.1 |
| | (2)% | | 6% |
Operating Revenue | $ | 492.5 |
| $ | 475.1 |
| | 4% | | 13% |
| | | | | | |
Equity Earnings | — |
| — |
| | n.m. | | n.m. |
Total Segment Fee Revenue1 | $ | 492.5 |
| $ | 475.1 |
| | 4% | | 13% |
Total Segment Revenue | $ | 613.9 |
| $ | 556.6 |
| | 10% | | 21% |
| | | | | | |
n.m. - not meaningful
| | | | | | |
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| | | | | | | | | | |
EMEA Revenue
($ in millions, “LC” = local currency) | Twelve Months Ended December 31, | | % Change in USD | | % Change in LC |
2015 | 2014 | | |
| | | | | | |
Leasing | $ | 289.4 |
| $ | 295.2 |
| | (2)% | | 11% |
Capital Markets & Hotels | 474.8 |
| 411.8 |
| | 15% | | 29% |
Property & Facility Management Fee Revenue1 | 224.4 |
| 236.9 |
| | (5)% | | 6% |
Property & Facility Management | 304.8 |
| 338.2 |
| | (10)% | | 1% |
Project & Development Services Fee Revenue1 | 170.1 |
| 139.6 |
| | 22% | | 38% |
Project & Development Services | 487.1 |
| 354.7 |
| | 37% | | 58% |
Advisory, Consulting and Other | 247.0 |
| 232.7 |
| | 6% | | 18% |
Operating Revenue | $ | 1,405.7 |
| $ | 1,316.2 |
| | 7% | | 20% |
| | | | | | |
Equity Earnings | 0.8 |
| — |
| | n.m. | | n.m |
Total Segment Fee Revenue1 | $ | 1,406.5 |
| $ | 1,316.2 |
| | 7% | | 20% |
Total Segment Revenue | $ | 1,803.9 |
| $ | 1,632.6 |
| | 10% | | 25% |
| | | | | | |
n.m. - not meaningful | | | | | | |
JLL Reports Fourth-Quarter 2015 Results - Page 8
EMEA Performance Highlights:
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• | EMEA's performance during the year was significantly higher in local currencies than in U.S. dollars due to the strength of the U.S. dollar against European currencies, particularly the Euro. |
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• | Fee revenue for the year was $1.4 billion, an increase of 20 percent from last year. Revenue growth from last year was driven by Project & Development Services and Capital Markets & Hotels. Growth in the region was led by Germany, France and the UK. Fee revenue for the quarter was $493 million, an increase of 13 percent from 2014. |
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• | Fee-based operating expenses, excluding restructuring and acquisition charges, were $1.3 billion, compared with $1.2 billion last year. Fee-based operating expenses, excluding restructuring and acquisition charges, were $403 million for the fourth quarter, compared with $390 million last year. |
| |
• | Operating income was $146 million for the year, up from $121 million in 2014. Operating income was $90 million for the fourth quarter, compared with $85 million last year. |
| |
• | Adjusted EBITDA was $173 million for the year, up from $145 million in 2014. Adjusted EBITDA margin calculated on a fee revenue basis was 12.4 percent in local currency for the year, compared with 11.0 percent in 2014. Adjusted EBITDA was $99 million for the fourth quarter, compared with $91 million last year. Adjusted EBITDA margin calculated on a fee revenue basis was 20.4 percent in local currency for the fourth quarter, compared with 19.2 percent in 2014. |
JLL Reports Fourth-Quarter 2015 Results - Page 9
Asia Pacific Real Estate Services
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| | | | | | | | | | |
Asia Pacific Revenue ($ in millions, “LC” = local currency) | Three Months Ended December 31, | | % Change in USD | | % Change in LC |
2015 | 2014 | | |
| | | | | | |
Leasing | $ | 87.7 |
| $ | 84.6 |
| | 4% | | 11% |
Capital Markets & Hotels | 50.4 |
| 62.8 |
| | (20)% | | (12)% |
Property & Facility Management Fee Revenue1 | 115.3 |
| 101.1 |
| | 14% | | 23% |
Property & Facility Management | 149.7 |
| 141.7 |
| | 6% | | 14% |
Project & Development Services Fee Revenue1 | 21.2 |
| 20.9 |
| | 1% | | 11% |
Project & Development Services | 32.7 |
| 32.9 |
| | (1)% | | 8% |
Advisory, Consulting and Other | 41.5 |
| 32.8 |
| | 27% | | 39% |
Operating Revenue | $ | 316.1 |
| $ | 302.2 |
| | 5% | | 14% |
| | | | | | |
Equity Earnings | 0.5 |
| 0.3 |
| | 67% | | 63% |
Total Segment Fee Revenue1 | $ | 316.6 |
| $ | 302.5 |
| | 5% | | 14% |
Total Segment Revenue | $ | 362.5 |
| $ | 355.1 |
| | 2% | | 11% |
| | | | | | |
n.m. - not meaningful
| | | | | | |
|
| | | | | | | | | | |
Asia Pacific Revenue ($ in millions, “LC” = local currency) | Twelve Months Ended December 31, | | % Change in USD | | % Change in LC |
2015 | 2014 | | |
| | | | | | |
Leasing | $ | 214.5 |
| $ | 205.3 |
| | 4% | | 13% |
Capital Markets & Hotels | 149.4 |
| 144.5 |
| | 3% | | 15% |
Property & Facility Management Fee Revenue1 | 404.5 |
| 379.4 |
| | 7% | | 17% |
Property & Facility Management | 546.5 |
| 523.6 |
| | 4% | | 13% |
Project & Development Services Fee Revenue1 | 81.9 |
| 72.2 |
| | 13% | | 25% |
Project & Development Services | 131.7 |
| 129.1 |
| | 2% | | 13% |
Advisory, Consulting and Other | 118.0 |
| 107.3 |
| | 10% | | 21% |
Operating Revenue | $ | 968.3 |
| $ | 908.7 |
| | 7% | | 17% |
| | | | | | |
Equity Earnings | 0.7 |
| 0.4 |
| | 75% | | 70% |
Total Segment Fee Revenue1 | $ | 969.0 |
| $ | 909.1 |
| | 7% | | 17% |
Total Segment Revenue | $ | 1,160.8 |
| $ | 1,110.2 |
| | 5% | | 14% |
| | | | | | |
n.m. - not meaningful
| | | | | | |
JLL Reports Fourth-Quarter 2015 Results - Page 10
Asia Pacific Performance Highlights:
| |
• | Asia Pacific's performance during the year was significantly higher in local currencies than in U.S. dollars due to the strength of the U.S. dollar, particularly against the Australian dollar and Japanese yen. |
| |
• | Fee revenue for the year was $969 million, an increase of 17 percent from 2014. Revenue growth compared with last year was strong across the platform, with double-digit increases across all service lines led by Property & Facility Management. Growth in the region was led by India and Japan. Fee revenue for the fourth quarter was $317 million, an increase of 14 percent from last year. Capital Markets & Hotels revenue for the quarter is down from 2014, reflective of the decline in market volumes for the region. |
| |
• | Fee-based operating expenses, excluding restructuring and acquisition charges, were $882 million for the year, compared with $825 million last year. Fee-based operating expenses, excluding restructuring and acquisition charges, were $263 million for the fourth quarter, compared with $250 million last year. |
| |
• | Operating income was $87 million for the year, up from $84 million in 2014. Operating income was $54 million for the fourth quarter, up from $52 million last year. |
| |
• | Adjusted EBITDA was $103 million for the year, up from $98 million in 2014. Adjusted EBITDA margin calculated on a fee revenue basis was 11.0 percent in local currency for the year, compared with 10.7 percent in 2014. Adjusted EBITDA was $58 million for the fourth quarter, consistent with the same period last year. Adjusted EBITDA margin calculated on a fee revenue basis was 18.4 percent in local currency for the fourth quarter, compared to 19.1 percent in 2014. |
JLL Reports Fourth-Quarter 2015 Results - Page 11
LaSalle Investment Management
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| | | | | | | | | | |
LaSalle Investment Management Revenue ($ in millions, “LC” = local currency) | Three Months Ended December 31, | | % Change in USD | | % Change in LC |
2015 | 2014 | | |
| | | | | | |
Advisory Fees | $ | 61.6 |
| $ | 58.8 |
| | 5% | | 9% |
Transaction Fees & Other | 11.2 |
| 7.3 |
| | 53% | | 61% |
Incentive Fees | 24.2 |
| 25.9 |
| | (7)% | | (5)% |
Operating Revenue | $ | 97.0 |
| $ | 92.0 |
| | 5% | | 10% |
| | | | | | |
Equity Earnings | 12.6 |
| 6.7 |
| | 88% | | 90% |
Total Segment Revenue | $ | 109.6 |
| $ | 98.7 |
| | 11% | | 15% |
| | | | | | |
n.m. - not meaningful
| | | | | | |
|
| | | | | | | | | | |
LaSalle Investment Management Revenue ($ in millions, “LC” = local currency) | Twelve Months Ended December 31, | | % Change in USD | | % Change in LC |
2015 | 2014 | | |
| | | | | | |
Advisory Fees | $ | 242.9 |
| $ | 235.6 |
| | 3% | | 10% |
Transaction Fees & Other | 30.6 |
| 27.2 |
| | 13% | | 22% |
Incentive Fees | 123.5 |
| 105.3 |
| | 17% | | 27% |
Operating Revenue | $ | 397.0 |
| $ | 368.1 |
| | 8% | | 16% |
| | | | | | |
Equity Earnings | 70.1 |
| 47.0 |
| | 49% | | 50% |
Total Segment Revenue | $ | 467.1 |
| $ | 415.1 |
| | 13% | | 20% |
| | | | | | |
n.m. - not meaningful | | | | | | |
LaSalle Investment Management Performance Highlights:
| |
• | Advisory fees were $243 million for the year, up 10 percent from last year, and up 9 percent for the quarter. Total segment revenue, including $31 million of transaction fees and other income, $123 million of incentive fees and $70 million of equity earnings, was $467 million for the year compared with $415 million last year. |
| |
• | Incentive fees and equity earnings were notable for the year and prior year. Incentive fees were driven by the sale of assets as LaSalle realized gains from legacy investments, whereas equity earnings were driven by valuation increases and investment dispositions. |
| |
• | Operating expenses were $310 million for the year, compared with $283 million last year. Operating income was $158 million for the year, compared with $132 million last year. |
| |
• | Adjusted EBITDA was $160 million for the year, compared with $134 million last year. Adjusted EBITDA margin was 34.0 percent in local currency, compared with 32.3 percent in 2014. |
| |
• | Capital raise was $5.0 billion for the year, with $1.2 billion raised in the fourth quarter. |
JLL Reports Fourth-Quarter 2015 Results - Page 12
| |
• | Assets under management were $56.4 billion as of December 31, 2015, down from $57.2 billion as of September 30, 2015, primarily due to dispositions and foreign currency impact. The net decrease in assets under management resulted from $4.7 billion of dispositions and withdrawals and $0.8 billion of net foreign currency decreases, partially offset by $3.3 billion of acquisitions and takeovers and $1.4 billion of net valuation increases. |
JLL Reports Fourth-Quarter 2015 Results - Page 13
About JLL
JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. A Fortune 500 company with annual fee revenue of $5.2 billion and gross revenue of $6.0 billion, JLL has more than 230 corporate offices, operates in more than 80 countries and has a global workforce of more than 60,000. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 4.0 billion square feet, or 372 million square meters, and completed $138 billion in sales, acquisitions and finance transactions in 2015. Its investment management business, LaSalle Investment Management, has $56.4 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.
200 East Randolph Drive Chicago Illinois 60601 | 30 Warwick Street London W1B 5NH | 9 Raffles Place #39-00 Republic Plaza Singapore 048619
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 actual results, performance, achievements, plans and objectives and dividend payments of JLL 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 JLL’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 JLL’s Annual Report on Form 10-K for the year ended December 31, 2014, on Form 10-Q for the quarter ended March 31, 2015, June 30, 2015, and September 30, 2015 and in other reports filed with the Securities and Exchange Commission. 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, JLL expressly disclaims any obligation or undertaking to publicly update or revise any forward-looking statements contained herein to reflect any change in JLL’s expectations or results, or any change in events.
JLL Reports Second-Quarter 2015 Results - Page 14
Conference Call
Management will conduct a conference call with shareholders, analysts and investment professionals on Wednesday, February 3, 2016 at 9:00 a.m. EST.
If you 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 also be required):
|
| | |
§ | U.S. callers: | +1 844 231 9804 |
§ | International callers: | +1 402 858 7998 |
§ | Passcode: | 21562666 |
Webcast
We are also offering a live webcast. Follow these steps to participate:
| |
1. | You must have a minimum 14.4 Kbps Internet connection |
| |
2. | Log on to https://www.webcaster4.com/Webcast/Page/609/12740 |
| |
3. | Download free Windows Media Player software: (link located under registration form) |
| |
4. | If you experience problems listening, please call the Webcast Hotline +1 800 774 9473 and provide your Event ID (12740). |
Supplemental Information
Supplemental information regarding the fourth-quarter 2015 earnings call has been posted to the Investor Relations section of the company's website: www.jll.com.
Conference Call Replay
Available: 12:00 p.m. EST Wednesday, February 3, 2016 through 11:59 p.m. EST Thursday, March 3, 2016 at the following numbers:
|
| | | |
§ | U.S. callers: | +1 855 859 2056 | or +1 800 585 8367 |
§ | International callers: | +1 404 537 3406 | |
§ | Passcode: | 21562666 | |
Web Audio Replay
An audio replay will be available for download or stream. Information and the link can be found on the company’s website: www.jll.com.
If you have any questions, please contact JLL’s Investor Relations department at: JLLInvestorRelations@am.jll.com.
###
|
| | | | | | | | | | | | | | | |
JONES LANG LASALLE INCORPORATED |
Consolidated Statements of Operations |
For the Three and Twelve Months Ended December 31, 2015 and 2014 |
(in thousands, except share data) |
(Unaudited) |
| Three Months Ended December 31, | | Twelve Months Ended December 31, |
| |
| 2015 | | 2014 | | 2015 | | 2014 |
| | | | | | | |
Revenue | $ | 1,887,417 |
| | $ | 1,748,981 |
| | $ | 5,965,671 |
| | $ | 5,429,603 |
|
| | | | | | | |
Operating expenses: | | | | | | | |
Compensation and benefits | 1,105,480 |
| | 1,031,869 |
| | 3,564,536 |
| | 3,258,673 |
|
Operating, administrative and other | 483,636 |
| | 427,048 |
| | 1,729,079 |
| | 1,568,424 |
|
Depreciation and amortization | 31,082 |
| | 27,123 |
| | 108,142 |
| | 94,337 |
|
Restructuring and acquisition charges 4 | 13,359 |
| | 1,126 |
| | 34,116 |
| | 42,505 |
|
Total operating expenses | 1,633,557 |
| | 1,487,166 |
| | 5,435,873 |
| | 4,963,939 |
|
| | | | | | | |
Operating income1 | 253,860 |
| | 261,815 |
| | 529,798 |
| | 465,664 |
|
| | | | | | | |
Interest expense, net of interest income | (7,758 | ) | | (6,660 | ) | | (28,127 | ) | | (28,321 | ) |
Equity earnings from real estate ventures | 13,602 |
| | 7,320 |
| | 77,475 |
| | 48,265 |
|
| | | | | | | |
Income before income taxes and noncontrolling interest 4 | 259,704 |
| | 262,475 |
| | 579,146 |
| | 485,608 |
|
Provision for income taxes 4 | 61,229 |
| | 67,699 |
| | 132,805 |
| | 97,588 |
|
Net income 4 | 198,475 |
| | 194,776 |
| | 446,341 |
| | 388,020 |
|
| | | | | | | |
Net income attributable to noncontrolling interest | 2,417 |
| | 841 |
| | 7,669 |
| | 1,957 |
|
Net income attributable to the Company | $ | 196,058 |
| | $ | 193,935 |
| | $ | 438,672 |
| | $ | 386,063 |
|
| | | | | | | |
Dividends on unvested common stock, net of tax benefit | 151 |
| | 138 |
| | 314 |
| | 314 |
|
Net income attributable to common shareholders | $ | 195,907 |
| | $ | 193,797 |
| | $ | 438,358 |
| | $ | 385,749 |
|
| | | | | | | |
Basic earnings per common share | $ | 4.35 |
| | $ | 4.32 |
| | $ | 9.75 |
| | $ | 8.63 |
|
| | | | | | | |
Basic weighted average shares outstanding | 45,043,383 |
| | 44,824,108 |
| | 44,940,042 |
| | 44,684,482 |
|
| | | | | | | |
Diluted earnings per common share 2 | $ | 4.31 |
| | $ | 4.28 |
| | $ | 9.65 |
| | $ | 8.52 |
|
| | | | | | | |
Diluted weighted average shares outstanding | 45,491,779 |
| | 45,331,703 |
| | 45,414,898 |
| | 45,260,563 |
|
| | | | | | | |
EBITDA 3 | $ | 298,544 |
| | $ | 296,258 |
| | $ | 715,415 |
| | $ | 608,266 |
|
| | | | | | | |
Please reference attached financial statement notes. | | | | | | |
|
| | | | | | | | | | | | | | | |
JONES LANG LASALLE INCORPORATED |
Segment Operating Results |
For the Three and Twelve Months Ended December 31, 2015 and 2014 |
(in thousands) |
(Unaudited) |
| Three Months Ended December 31, | | Twelve Months Ended December 31, |
|
| 2015 | | 2014 | | 2015 | | 2014 |
REAL ESTATE SERVICES | | | | | | | |
| | | | | | | |
AMERICAS | | | | | | | |
Revenue: | | | | | | | |
Operating revenue | $ | 814,484 |
| | $ | 745,584 |
| | $ | 2,605,556 |
| | $ | 2,319,136 |
|
Equity earnings | 522 |
| | 329 |
| | 5,888 |
| | 775 |
|
Total segment revenue | 815,006 |
| | 745,913 |
| | 2,611,444 |
| | 2,319,911 |
|
Gross contract costs1 | (54,072 | ) | | (57,517 | ) | | (212,118 | ) | | (210,380 | ) |
Total segment fee revenue | 760,934 |
| | 688,396 |
| | 2,399,326 |
| | 2,109,531 |
|
| | | | | | | |
Operating expenses: | | | | | | | |
Compensation, operating and administrative expenses | 690,213 |
| | 621,582 |
| | 2,297,142 |
| | 2,045,330 |
|
Depreciation and amortization | 16,728 |
| | 16,716 |
| | 63,239 |
| | 55,215 |
|
Total segment operating expenses | 706,941 |
| | 638,298 |
| | 2,360,381 |
| | 2,100,545 |
|
Gross contract costs1 | (54,072 | ) | | (57,517 | ) | | (212,118 | ) | | (210,380 | ) |
Total fee-based segment operating expenses | 652,869 |
| | 580,781 |
| | 2,148,263 |
| | 1,890,165 |
|
| | | | | | | |
Operating income | $ | 108,065 |
| | $ | 107,615 |
| | $ | 251,063 |
| | $ | 219,366 |
|
| | | | | | | |
Adjusted EBITDA | $ | 124,793 |
| | $ | 124,331 |
| | $ | 314,302 |
| | $ | 274,581 |
|
| | | | | | | |
EMEA | | | | | | | |
Revenue: | | | | | | | |
Operating revenue | $ | 613,930 |
| | $ | 556,568 |
| | $ | 1,803,000 |
| | $ | 1,632,657 |
|
Equity earnings | — |
| | 4 |
| | 752 |
| | 17 |
|
Total segment revenue | 613,930 |
| | 556,572 |
| | 1,803,752 |
| | 1,632,674 |
|
Gross contract costs1 | (121,398 | ) | | (81,511 | ) | | (397,446 | ) | | (316,440 | ) |
Total segment fee revenue | 492,532 |
| | 475,061 |
| | 1,406,306 |
| | 1,316,234 |
|
| | | | | | | |
Operating expenses: | | | | | | | |
Compensation, operating and administrative expenses | 515,035 |
| | 465,434 |
| | 1,631,064 |
| | 1,488,033 |
|
Depreciation and amortization | 9,080 |
| | 6,460 |
| | 27,179 |
| | 23,763 |
|
Total segment operating expenses | 524,115 |
| | 471,894 |
| | 1,658,243 |
| | 1,511,796 |
|
Gross contract costs1 | (121,398 | ) | | (81,511 | ) | | (397,446 | ) | | (316,440 | ) |
Total fee-based segment operating expenses | 402,717 |
| | 390,383 |
| | 1,260,797 |
| | 1,195,356 |
|
| | | | | | | |
Operating income | $ | 89,815 |
| | $ | 84,678 |
| | $ | 145,509 |
| | $ | 120,878 |
|
| | | | | | | |
Adjusted EBITDA | $ | 98,895 |
| | $ | 91,138 |
| | $ | 172,688 |
| | $ | 144,641 |
|
|
| | | | | | | | | | | | | | | |
| Three Months Ended December 31, | | Twelve Months Ended December 31, |
| |
| 2015 | | 2014 | | 2015 | | 2014 |
ASIA PACIFIC | | | | | | | |
Revenue: | | | | | | | |
Operating revenue | $ | 362,006 |
| | $ | 354,812 |
| | $ | 1,159,979 |
| | $ | 1,109,701 |
|
Equity earnings | 498 |
| | 327 |
| | 713 |
| | 447 |
|
Total segment revenue | 362,504 |
| | 355,139 |
| | 1,160,692 |
| | 1,110,148 |
|
Gross contract costs1 | (45,825 | ) | | (52,590 | ) | | (191,780 | ) | | (201,073 | ) |
Total segment fee revenue | 316,679 |
| | 302,549 |
| | 968,912 |
| | 909,075 |
|
| | | | | | | |
Operating expenses: | | | | | | | |
Compensation, operating and administrative expenses | 304,199 |
| | 299,530 |
| | 1,057,962 |
| | 1,012,639 |
|
Depreciation and amortization | 4,651 |
| | 3,430 |
| | 15,529 |
| | 13,301 |
|
Total segment operating expenses | 308,850 |
| | 302,960 |
| | 1,073,491 |
| | 1,025,940 |
|
Gross contract costs1 | (45,825 | ) | | (52,590 | ) | | (191,780 | ) | | (201,073 | ) |
Total fee-based segment operating expenses | 263,025 |
| | 250,370 |
| | 881,711 |
| | 824,867 |
|
| | | | | | | |
Operating income | $ | 53,654 |
| | $ | 52,179 |
| | $ | 87,201 |
| | $ | 84,208 |
|
| | | | | | | |
Adjusted EBITDA | $ | 58,305 |
| | $ | 57,825 |
| | $ | 102,730 |
| | $ | 97,509 |
|
| | | | | | | |
LASALLE INVESTMENT MANAGEMENT | | | | | | | |
Revenue: | | | | | | | |
Operating revenue | $ | 96,997 |
| | $ | 92,017 |
| | $ | 397,136 |
| | $ | 368,109 |
|
Equity earnings | 12,582 |
| | 6,660 |
| | 70,122 |
| | 47,026 |
|
Total segment revenue | 109,579 |
| | 98,677 |
| | 467,258 |
| | 415,135 |
|
| | | | | | | |
Operating expenses: | | | | | | | |
Compensation, operating and administrative expenses | 79,669 |
| | 72,371 |
| | 307,447 |
| | 281,094 |
|
Depreciation and amortization | 623 |
| | 517 |
| | 2,195 |
| | 2,059 |
|
Total segment operating expenses | 80,292 |
| | 72,888 |
| | 309,642 |
| | 283,153 |
|
| | | | | | | |
Operating income | $ | 29,287 |
| | $ | 25,789 |
| | $ | 157,616 |
| | $ | 131,982 |
|
| | | | | | | |
Adjusted EBITDA | $ | 29,910 |
| | $ | 26,306 |
| | $ | 159,811 |
| | $ | 134,041 |
|
| | | | | | | |
| | | | | | | |
SEGMENT RECONCILING ITEMS | | | | | | | |
Total segment revenue | $ | 1,901,019 |
| | $ | 1,756,301 |
| | $ | 6,043,146 |
| | $ | 5,477,868 |
|
Reclassification of equity earnings | 13,602 |
| | 7,320 |
| | 77,475 |
| | 48,265 |
|
Total revenue | $ | 1,887,417 |
| | $ | 1,748,981 |
| | $ | 5,965,671 |
| | $ | 5,429,603 |
|
| | | | | | | |
Total operating expenses before restructuring and acquisition charges | 1,620,198 |
| | 1,486,040 |
| | 5,401,757 |
| | 4,921,434 |
|
Operating income before restructuring and acquisition charges | $ | 267,219 |
| | $ | 262,941 |
| | $ | 563,914 |
| | $ | 508,169 |
|
| | | | | | | |
Restructuring and acquisition charges4 | 13,359 |
| | 1,126 |
| | 34,116 |
| | 42,505 |
|
Operating income after restructuring and acquisition charges | $ | 253,860 |
| | $ | 261,815 |
| | $ | 529,798 |
| | $ | 465,664 |
|
| | | | | | | |
Total adjusted EBITDA | $ | 311,903 |
| | $ | 299,600 |
| | $ | 749,531 |
| | $ | 650,771 |
|
Restructuring and acquisition charges4 | 13,359 |
| | 3,342 |
| | 34,116 |
| | 42,505 |
|
Total EBITDA | $ | 298,544 |
| | $ | 296,258 |
| | $ | 715,415 |
| | $ | 608,266 |
|
| | | | | |
Please reference attached financial statement notes. | | | | | |
|
| | | | | | | | | | | |
JONES LANG LASALLE INCORPORATED | |
Consolidated Balance Sheets | |
December 31, 2015 and December 31, 2014 | |
(in thousands) | |
| | | | (Unaudited) | | | |
| | | | December 31, | | December 31, | |
| | | | 2015 | | 2014 | |
ASSETS | | | | | |
Current assets: | | | | | |
| Cash and cash equivalents | | $ | 216,583 |
| | $ | 250,413 |
| |
| Trade receivables, net of allowances | | 1,591,674 |
| | 1,375,035 |
| |
| Notes and other receivables | | 267,307 |
| | 181,377 |
| |
| Warehouse receivables | | 265,211 |
| | 83,312 |
| |
| Prepaid expenses | | 77,753 |
| | 64,963 |
| |
| Deferred tax assets, net | | 132,868 |
| | 135,251 |
| |
| Other | | 99,411 |
| | 27,825 |
| |
| | Total current assets | | 2,650,807 |
| | 2,118,176 |
| |
| | | | | | | |
Property and equipment, net of accumulated depreciation | | 423,268 |
| | 368,361 |
| |
Goodwill, with indefinite useful lives | | 2,141,471 |
| | 1,907,924 |
| |
Identified intangibles, net of accumulated amortization | | 227,185 |
| | 38,841 |
| |
Investments in real estate ventures | | 311,487 |
| | 297,142 |
| |
Long-term receivables | | 135,181 |
| | 85,749 |
| |
Deferred tax assets, net | | 87,177 |
| | 90,897 |
| |
Deferred compensation plans | | 134,253 |
| | 111,234 |
| |
Other | | 94,330 |
| | 57,012 |
| |
| | Total assets | | $ | 6,205,159 |
| | $ | 5,075,336 |
| |
| | | | | | | |
LIABILITIES AND EQUITY | | | |
Current liabilities: | | | |
| Accounts payable and accrued liabilities | | $ | 712,624 |
| | $ | 630,037 |
| |
| Accrued compensation | | 1,088,889 |
| | 990,678 |
| |
| Short-term borrowings | | 49,217 |
| | 19,623 |
| |
| Deferred tax liabilities, net | | 21,112 |
| | 16,554 |
| |
| Deferred income | | 114,770 |
| | 104,565 |
| |
| Deferred business acquisition obligations | | 54,675 |
| | 49,259 |
| |
| Warehouse facility | | 263,102 |
| | 83,312 |
| |
| Minority shareholder redemption liability | | — |
| | 11,158 |
| |
| Other | | 200,804 |
| | 141,825 |
| |
| | Total current liabilities | | 2,505,193 |
| | 2,047,011 |
| |
| | | | | | | |
Noncurrent liabilities: | | | | | |
| Credit facility | | 254,999 |
| | — |
| |
| Long-term senior notes | | 275,000 |
| | 275,000 |
| |
| Deferred tax liabilities, net | | 33,032 |
| | 17,082 |
| |
| Deferred compensation | | 156,197 |
| | 125,857 |
| |
| Deferred business acquisition obligations | | 42,860 |
| | 68,848 |
| |
| Other | | 208,496 |
| | 118,969 |
| |
| | Total liabilities | | 3,475,777 |
| | 2,652,767 |
| |
|
| | | | | | | | | | | |
| | | | (Unaudited) | | | |
| | | | December 31, | | December 31, | |
| | | | 2015 | | 2014 | |
Redeemable noncontrolling interest | | 11,083 |
| | 13,449 |
| |
| | | | | | | |
Company shareholders' equity: | | | | | |
| Common stock, $.01 par value per share,100,000,000 shares authorized; 45,049,503 and 44,828,779 shares issued and outstanding as of December 31, 2015 and December 31, 2014, respectively | | 450 |
| | 448 |
| |
| Additional paid-in capital | | 986,633 |
| | 961,850 |
| |
| Retained earnings | | 2,044,224 |
| | 1,631,145 |
| |
| Shares held in trust | | (6,231 | ) | | (6,407 | ) | |
| Accumulated other comprehensive income (loss) | | (336,313 | ) | | (200,239 | ) | |
| | Total Company shareholders' equity | | 2,688,763 |
| | 2,386,797 |
| |
| | | | | | | |
| Noncontrolling interest | | 29,536 |
| | 22,323 |
| |
| | Total equity | | 2,718,299 |
| | 2,409,120 |
| |
| | | | | | | |
| | Total liabilities and equity | | $ | 6,205,159 |
| | $ | 5,075,336 |
| |
| | | | | | | |
Please reference attached financial statement notes. | | | | | |
JONES LANG LASALLE INCORPORATED
Summarized Consolidated Statements of Cash Flows
For the Twelve Months Ended December 31, 2015 and 2014
(in thousands)
|
| | | | | | | |
| Twelve Months Ended |
| December 31, |
| 2015 | | 2014 |
| | | |
Cash used in operating activities | $ | 375,769 |
| | $ | 498,861 |
|
| | | |
Cash used in investing activities | (584,615 | ) | | (187,938 | ) |
| | | |
Cash provided by financing activities | 191,567 |
| | (203,029 | ) |
| | | |
Effect of currency exchange rate changes on cash and cash equivalents | (16,551 | ) | | (10,207 | ) |
| | | |
Net decrease in cash and cash equivalents | $ | (33,830 | ) | | $ | 97,687 |
|
| | | |
Cash and cash equivalents, beginning of period | 250,413 |
| | 152,726 |
|
| | | |
Cash and cash equivalents, end of period | $ | 216,583 |
| | $ | 250,413 |
|
| | | |
Please reference attached financial statement notes. | | | |
JONES LANG LASALLE INCORPORATED
Financial Statement Notes
1. Consistent with U.S. GAAP (“GAAP”), gross contract vendor and subcontractor costs (“gross contract costs”) which are managed on certain client assignments in the Property & Facility Management and Project & Development Services business lines are presented on a gross basis in both revenue and operating expenses. Gross contract costs are excluded from revenue and operating expenses in determining “fee revenue” and “fee-based operating expenses,” respectively. Excluding these costs from revenue and operating expenses more accurately reflects how the firm manages its expense base and its operating margins.
Adjusted operating income excludes the impact of restructuring and acquisition charges. “Adjusted operating income margin” is calculated by dividing adjusted operating income by fee revenue. Below are reconciliations of revenue and operating expenses to fee revenue and fee-based operating expenses, as well as adjusted operating income margin calculations, for the three and twelve months ended December 31, 2015 and 2014.
|
| | | | | | | | | | | | | | | | |
| | Three Months Ended | | Twelve Months Ended |
| | December 31, | | December 31, |
($ in millions) | | 2015 | | 2014 | | 2015 | | 2014 |
| | | | | | | | |
Revenue | | $ | 1,887.4 |
| | $ | 1,749.0 |
| | $ | 5,965.7 |
| | $ | 5,429.6 |
|
Gross contract costs | | (221.3 | ) | | (191.6 | ) | | (801.3 | ) | | (727.9 | ) |
Fee revenue | | $ | 1,666.1 |
| | $ | 1,557.4 |
| | $ | 5,164.4 |
| | $ | 4,701.7 |
|
| | | | | | | | |
Operating expenses | | $ | 1,633.6 |
| | $ | 1,487.2 |
| | $ | 5,435.9 |
| | $ | 4,963.9 |
|
Gross contract costs | | (221.3 | ) | | (191.6 | ) | | (801.3 | ) | | (727.9 | ) |
Fee-based operating expenses | | $ | 1,412.3 |
| | $ | 1,295.6 |
| | $ | 4,634.6 |
| | $ | 4,236.0 |
|
| | | | | | | | |
Operating income | | $ | 253.8 |
| | $ | 261.8 |
| | $ | 529.8 |
| | $ | 465.7 |
|
| | | | | | | | |
Add: | | | | | | | | |
Restructuring and acquisition charges* | | 13.4 |
| | 3.3 |
| | 34.1 |
| | 42.5 |
|
Adjusted operating income | | $ | 267.2 |
| | $ | 265.1 |
| | $ | 563.9 |
| | $ | 508.2 |
|
| | | | | | | | |
Adjusted operating income margin | | 16.0 | % | | 17.0 | % | | 10.9 | % | | 10.8 | % |
*See note 4 for more information on restructuring and acquisition charges
2. Net restructuring and acquisition charges are excluded from GAAP net income attributable to common shareholders to arrive at adjusted net income for the three and twelve months ended December 31, 2015 and 2014. Adjusted net income in the table below for the three and twelve months ended December 31, 2014 no longer incorporates an adjustment to exclude the net intangible amortization related to the 2011 King Sturge acquisition; such amounts were $0.4 million and $2.0 million of amortization expense for the three and twelve months ended December 31, 2014, respectively. There was no comparable activity during the three and twelve months ended December 31, 2015.
Amounts, including adjusted diluted earnings per share - local currency, and percentage variances presented on a local currency basis are calculated by translating the current period results of our foreign operations to U.S. dollars using the foreign currency exchange rates from the periods against which our current period results are being compared. Management believes this methodology provides a framework for assessing our performance and operations excluding the effect of foreign currency exchange rate fluctuations. Adjusted diluted earnings per share - local currency, calculated pursuant to this methodology is a non-GAAP financial measure, which should not be considered as an alternative to basic or diluted earnings per share determined in accordance with GAAP. Because amounts and percentage variances presented on a local currency basis are not calculated under GAAP, they may not be comparable to similarly titled measures used by other companies.
Below are reconciliations of GAAP net income attributable to common shareholders to adjusted net income and calculations of earnings per share for each net income total:
|
| | | | | | | | | | | | | | | | |
| | Three Months Ended | | Twelve Months Ended |
| | December 31, | | December 31, |
($ in millions, except per share data) | | 2015 | | 2014 | | 2015 | | 2014 |
| | | | | | | | |
GAAP net income attributable to common shareholders | | $ | 195.9 |
| | $ | 193.8 |
| | $ | 438.4 |
| | $ | 385.7 |
|
Shares (in 000s) | | 45,492 |
| | 45,332 |
| | 45,415 |
| | 45,261 |
|
GAAP diluted earnings per share | | $ | 4.31 |
| | $ | 4.28 |
| | $ | 9.65 |
| | $ | 8.52 |
|
| | | | | | | | |
GAAP net income attributable to common shareholders | | $ | 195.9 |
| | $ | 193.8 |
| | $ | 438.4 |
| | $ | 385.7 |
|
Restructuring and acquisition charges, net* | | 10.1 |
| | 2.5 |
| | 16.1 |
| | 6.0 |
|
Adjusted net income | | $ | 206.0 |
| | $ | 196.3 |
| | $ | 454.5 |
| | $ | 391.7 |
|
| | | | | | | | |
Shares (in 000s) | | 45,492 |
| | 45,332 |
| | 45,415 |
| | 45,261 |
|
| | | | | | | | |
Adjusted diluted earnings per share | | $ | 4.53 |
| | $ | 4.33 |
| | $ | 10.01 |
| | $ | 8.65 |
|
Currency impact on adjusted diluted earnings per share | | 0.42 |
| | | | 0.87 |
| | |
Adjusted diluted earnings per share - local currency | | $ | 4.95 |
| | | | $ | 10.88 |
| | |
*See note 4 for more information on restructuring and acquisition charges
3. Adjusted EBITDA represents earnings before interest expense net of interest income, income taxes, depreciation and amortization, adjusted for restructuring and acquisition charges. Although adjusted EBITDA and EBITDA are non-GAAP financial measures, they are used extensively by management and are useful to investors and lenders as metrics for evaluating operating performance and liquidity. EBITDA is used in the calculations of certain covenants related to the firm’s revolving credit facility. However, adjusted EBITDA and EBITDA should not be considered as an alternative to net income determined in accordance with GAAP. Because adjusted EBITDA and EBITDA are not calculated under GAAP, the firm’s adjusted EBITDA and EBITDA may not be comparable to similarly titled measures used by other companies.
Below is a reconciliation of net income to EBITDA and adjusted EBITDA:
|
| | | | | | | | | | | | | | | | |
| | Three Months Ended | | Twelve Months Ended |
| | December 31, | | December 31, |
($ in millions) | | 2015 | | 2014 | | 2015 | | 2014 |
| | | | | | | | |
GAAP net income | | $ | 198.5 |
| | $ | 194.8 |
| | $ | 446.3 |
| | $ | 388.0 |
|
Add: | | | | | | | | |
Interest expense, net of interest income | | 7.8 |
| | 6.7 |
| | 28.1 |
| | 28.3 |
|
Provision for income taxes | | 61.2 |
| | 67.7 |
| | 132.8 |
| | 97.6 |
|
Depreciation and amortization | | 31.1 |
| | 27.1 |
| | 108.1 |
| | 94.4 |
|
| | |
| | |
| | |
| | |
|
EBITDA | | $ | 298.6 |
| | $ | 296.3 |
| | $ | 715.3 |
| | $ | 608.3 |
|
Add: | | | | | | | | |
Restructuring and acquisition charges | | 13.4 |
| | 3.3 |
| | 34.1 |
| | 42.5 |
|
Adjusted EBITDA | | $ | 312.0 |
| | $ | 299.6 |
| | $ | 749.4 |
| | $ | 650.8 |
|
4. Restructuring and acquisition charges are excluded from segment operating results, although they are included for consolidated reporting. For purposes of segment operating results, the allocation of restructuring and acquisition charges to the segments has been determined not to be meaningful to investors, so the performance of segment results has been evaluated without allocation of these charges.
Restructuring and acquisition charges presented in the Financial Statement Notes for the three months ended December 31, 2014 includes a pre-tax charge of $2.2 million associated with acquisition-related activity that was presented within Operating, administrative and other expenses in the consolidated statements of operations for the quarter and reclassified to Restructuring and acquisition charges for full-year 2014 reporting comparability.
Restructuring and acquisition charges of $34 million for the year ended December 31, 2015 includes $13 million related to the write-off of an indemnification asset which arose from prior period acquisition activity. This write-off is offset by the recognition of a tax benefit of an equal amount in the provision for income taxes, and therefore has no impact on net income.
|
| | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | Twelve Months End |
| | December 31, 2015 | | December 31, 2015 |
($ in millions) | | GAAP | Adjusting Item | Adjusted | | GAAP | Adjusting Item | Adjusted |
| | | | | | | | |
Income before income taxes and noncontrolling interest | | $ | 259.7 |
| $ | — |
| $ | 259.7 |
| | $ | 579.1 |
| $ | 12.8 |
| $ | 591.9 |
|
Provision for income taxes | | 61.2 |
| — |
| 61.2 |
| | 132.8 |
| 12.8 |
| 145.6 |
|
Net Income | | $ | 198.5 |
| | $ | 198.5 |
| | $ | 446.3 |
| | $ | 446.3 |
|
| | | | | | | | |
Excluding the impact of this item, the adjusted provision for income taxes for the year ended December 31, 2015 of $145.6 million reflects a 24.6 percent estimated annual effective tax rate on adjusted income before taxes of $592.4 million.
5. Each geographic region offers the firm’s full range of Real Estate Services businesses consisting primarily of tenant representation and agency leasing; capital markets; property management and facilities management; project and development services; and advisory, consulting and valuations services. LaSalle Investment Management provides investment management services to institutional investors and high-net-worth individuals.
6. The consolidated statements of cash flows are presented in summarized form. For complete consolidated statements of cash flows, please refer to the firm’s Annual Report on Form 10-K for the year ended December 31, 2015, to be filed with the Securities and Exchange Commission shortly.
7. EMEA refers to Europe, Middle East and Africa. MENA refers to Middle East and North Africa. Greater China includes China, Hong Kong, Macau and Taiwan. Southeast Asia refers to Singapore, Indonesia, Philippines, Thailand and Vietnam. The BRIC countries include Brazil, Russia, India and China.
8. Certain prior year amounts have been reclassified to conform to the current presentation.
|
| |
Contact: | Christie B. Kelly |
Title: | Global Chief Financial Officer |
Phone: | +1 312 228 2316 |
Supplemental Information Earnings Call Fourth-Quarter 2015
Leasing (in square meters) Americas (U.S. only) 10% 2% 0-5% EMEA (Europe only) 18% 13% Flat Asia Pacific (select markets) 23% 19% 15% Total 14% 8% 5% ForecastActual Capital Markets(1) LC USD LC USD USD Americas -8% -9% 5% 4% 5-10% EMEA(2) 12% -2% 14% -4% Flat Asia Pacific -13% -19% 3% -6% 5% Total -2% -8% 8% -1% 0-5% Investment volumes remain solid; outlook steady Market volume & outlook Actual Forecast Q4 2015 v. Q4 2014 FY 2015 v. FY 2014 FY 2016 v. FY 2015 Leasing volumes improving; momentum continues (1) Market volume data excludes multi-family assets. (2) JLL Research volume projections for full year 2016 are flat in both euro terms and U.S. dollars compared to 2015. Source: JLL Research, February 2016 JLL Research 2 Market Volumes Q4 2015 v. Q4 2014 FY 2015 v. FY 2014 FY 2016 v. FY 2015 Gross Absorption
Multi-Regional HSBC, 42 countries Australia Department of ForeignAffairs and Trade, 76 countries Americas Financial Service Company, Americas Extended Stay America Portfolio, U.S. Telecommunications Company, Americas Blackstone/EOP, Dallas Kindred Healthcare, Americas Indeed, Inc., New York 333 West Wacker, Chicago 131 Dartmouth, Boston EMEA Murmansk Mall, Russia Logistics/Retail Portfolio, Saudi ArabiaAqua Portfolio, Europe Traction Portfolio, Europe Turin Shopping Centre, Italy Corridor Portfolio, Europe E&Y, Madrid Varma Portfolio, Finland HRS, Cologne Asia Pacific Telstra, Asia Cannes Bay Impression, Chengdu Microsoft, Beijing Songjiang Creative Park, Shenzhen The Well Shopping Centre, Melbourne Net Ease, Guangzhou Chivas Godown, Hong Kong BIG Hotel, Singapore Selected business wins and expansions 3
Rental Values Capital Values + 10-20% Boston Madrid, Boston, Brussels + 5-10% Tokyo, Dubai*, Chicago, Los Angeles, New York*, Tokyo, Shanghai, Dubai*, Chicago, Los Angeles,San Francisco, Sydney, Shanghai, Hong Kong, Madrid New York*, San Francisco, Moscow, Stockholm + 0-5% London*, Brussels, Seoul, Toronto, Washington DC, Sydney, London*, Milan, Hong Kong, Frankfurt,Beijing, Paris*, Moscow, Milan, Frankfurt, Stockholm Toronto, Washington DC, Beijing, Seoul, Paris* - 0-5% Mumbai, Mexico City Mumbai, Mexico City - 5-10% Sao Paulo Sao Paulo - 10-20% Singapore Singapore Prime offices projected changes in values, 2016 4 NOTES: *New York – Midtown, London – West End, Paris - CBD, Dubai - DIFC. Nominal rates in local currency. Source: JLL Research, February 2016
Note: Equity earnings of $13.6M and $77.5M in Q4 2015 and FY 2015, respectively, are included in segment results, however, excluded from Consolidated totals. Year-over-year increases shown fee-based have been calculated using fee revenue, which excludes gross contract costs. Consolidated Fee - $1,666 Gross - $1,887 LaSalle 6.5% $109 EMEA 29.3% Fee - $493 Gross - $614 Q4 2015 Revenue Revenue performance ($ in millions) Americas 45.3% Fee - $761 Gross - $815 Asia Pac 18.9% Fee - $317 Gross - $363 5 Consolidated Fee - $5,164 Gross - $5,966 LaSalle 8.9% $467 EMEA 26.3% Fee - $1,407 Gross - $1,804 FY 2015 Americas 45.7% Fee - $2,399 Gross - $2,611 Asia Pac 18.5% Fee - $969 Gross - $1,161 Q4 2015 FY 2015 YOY % Growth, Fee Revenue Basis LC USD Segment LC USD 14% 11% Americas 16% 14% 13% 4% EMEA 20% 7% 14% 5% Asia Pacific 17% 7% 15% 11% LaSalle 20% 13% 14% 7% Consolidated 17% 10% 15% 8% Consolidated Gross Revenue 18% 10%
Note: Segment and Consolidated Real Estate Services (“RES”) operating revenue exclude Equity earnings (losses). Fee revenue presentation of Property & Facility Management, Project & Development Services and Total RES Operating Revenue excludes gross contract costs. Q4 2015 Real Estate Services revenue ($ in millions; % change in local currency over Q4 2014) Americas EMEA Asia Pacific Total RES Leasing $374.9 13% $103.4 7% $87.7 11% $566.0 12% Capital Markets & Hotels $105.4 13% $176.1 11% $50.4 (12%) $331.9 7% Property & Facility Management Fee $154.1 15% $68.1 13% $115.3 23% $337.5 17% Gross Revenue $206.7 12% $85.2 1% $149.7 14% $441.6 10% Project & Development Services - Fee $81.5 21% $58.7 57% $21.2 11% $161.4 31% Gross Revenue $83.0 21% $163.0 85% $32.7 8% $278.7 50% Advisory, Consulting & Other $44.5 13% $86.2 6% $41.5 39% $172.2 14% Total RES Operating Fee Revenue $760.4 14% $492.5 13% $316.1 14% $1,569.0 14% Total Gross Revenue $814.5 14% $613.9 21% $362.0 11% $1,790.4 15% 6
Note: Segment and Consolidated Real Estate Services (“RES”) operating revenue exclude Equity earnings (losses). Fee revenue presentation of Property & Facility Management, Project & Development Services and Total RES Operating Revenue excludes gross contract costs. YTD 2015 Real Estate Services revenue ($ in millions; % change in local currency over YTD 2014) Americas EMEA Asia Pacific Total RES Leasing $1,165.6 14% $289.4 11% $214.5 13% $1,669.5 13% Capital Markets & Hotels $331.6 25% $474.8 29% $149.4 15% $955.8 25% Property & Facility Management Fee $499.3 14% $224.4 6% $404.5 17% $1,128.2 13% Gross Revenue $706.1 12% $304.8 1% $546.5 13% $1,557.4 10% Project & Development Services - Fee $258.0 20% $170.1 38% $81.9 25% $510.0 26% Gross Revenue $263.3 21% $487.1 58% $131.7 13% $882.1 38% Advisory, Consulting & Other $138.9 13% $247.0 18% $118.0 21% $503.9 18% Total RES Operating Fee Revenue $2,393.4 16% $1,405.7 20% $968.3 17% $4,767.4 17% Total Gross Revenue $2,605.5 16% $1,803.1 25% $1,160.1 14% $5,568.7 18% 7
• Successful capital raising with $1.2 billion for the quarter, $5.0 billion raised for the year • Assets Under Management reach $56 billion, up from $54 billion a year ago; reflects net foreign currency reduction of $2.5 billion • Record equity earnings from valuation increases and investment dispositions • Notable incentive fees driven by asset sales • 2016 Outlook • Incentive fees expected to continue at magnitude potentially above historical average • Future equity earnings to reflect market value movements after two years of outsized results Separate Accounts $32.4 Commingled Funds $11.2 Public Securities $12.8 Q4 & FY 2015 Highlights Q4 2015 AUM = $56 Billion ($ in billions) Note: AUM data reported on a one-quarter lag. Public Securities $12.8 Continental Europe $3.9 8 U.K. $18.7 North America $14.4Asia Pacific $6.6
Highlights • Investment grade ratings; Baa2 (Positive) / BBB+ (Stable) ◦ Moody's outlook revised up to Positive in December 2015 ◦ Two S&P rating increases to BBB+ since December 2014 • FY 2015 net interest expense $28M, flat to FY 2014 • Ample capacity to invest for the future ◦ Disciplined long-term M&A focus ◦ Technology - expanding services, improving user experience and data analytics to drive productivity Net Debt $ millions Dec 2015 Dec 2014 Dec 2013 Cash and Cash Equivalents $ 216 $ 250 $ 153 Short Term Borrowings 49 20 25 Credit Facility ($2B capacity) 255 — 155 Net Bank Debt $ 88 $ (230) $ 27 Long Term Senior Notes 275 275 275 Deferred Business Acquisition Obligations 98 118 135 Total Net Debt $ 461 $ 163 $ 437 Investment grade balance sheet 9 (1) Includes payments made at close plus deferred acquisition and earn outs paid during the period for transactions closed in prior periods (2) Includes capital contributions of $48M offset by distributions of $48M, excluding amounts attributable to a consolidated investment in which we have no equity interest. (3) Excludes investments in joint venture entities, capitalized leases and tenant improvement allowances that are required to be consolidated under U.S. GAAP Cash Spend 2015 2014 2013$ in millions M&A(1) $446 $78 $130 (Including Deferred) Co-investment(2) 0 -6 9 Dividends 26 22 20 Capital Expenditures(3) 149 130 97 Total Spend $621 $224 $256
Growth strategy in action: broad-based M&A activity 10 (1) 2015 M&A cash spend of $446M which includes payments made at close plus deferred acquisition and earn outs paid during the period for transactions closed in prior periods 24 transactions announced or closed in 2015 Total value over • Leasing & Capital Markets • Corporate Solutions & Property Management • Project Development Services • Advisory, Consulting & Other Focused on Strategic alignment Cultural fit Financial discipline Alignment with G5 strategy Enhance our integrated and global platform Strengthen presence in key markets • U.S. • Canada • UK • Sweden • Poland • Germany • Turkey • South Africa • Australia • Japan Add new capabilities and expand services to clients • Multi-family financing • Retail design and brand experience • Project management • Sustainability consulting • Retail services • Hotels technology, tax and tourism consulting Increase annuity revenue streams • Property management • Integrated facility management • Debt advisory services Connect owners, occupiers and service providers through information technology • Increased facility management efficiencies and enhanced business intelligence $600M(1) 50% 21% 19% of M&A investment attributable to annuity revenue streams > 60 % 10%
Appendix 11
Prime Offices Capital Value Clock, Q4 2014 v Q4 2015 Based on notional capital values for Grade A space in CBD or equivalent. US positions relate to the overall market Source: JLL Research, February 2016 Americas EMEA Asia Pacific The Jones Lang LaSalle Property Clocks SM 12
Prime Offices Rental Clock, Q4 2014 v Q4 2015 Based on rents for Grade A space in CBD or equivalent. US positions relate to the overall market Source: JLL Research, February 2016 Americas EMEA Asia Pacific The Jones Lang LaSalle Property Clocks SM 13
Refer to page 19 for Reconciliation of GAAP Net Income to Adjusted EBITDA for the three and twelve months ended December 31, 2015, for details relative to these Adjusted EBITDA calculations. Segment Adjusted EBITDA is calculated by adding the segment’s depreciation and amortization to its reported operating income, which includes equity earnings and excludes restructuring and acquisition charges. Consolidated Adjusted EBITDA is the sum of the Adjusted EBITDA of the four segments. Consolidated $312 Q4 2015 Adjusted EBITDA Adjusted EBITDA performance ($ in millions) Asia Pac 18.8% $58 EMEA 30.7% $99 LaSalle 9.7% $30 14 Consolidated $749 FY 2015 Asia Pac 13.7% $103 EMEA 22.7% $173 LaSalle 21.5% $159 Q4 Adj. EBITDA Margin, Fee Revenue FY 2015 2015 atconstant rates 2014 Segment 2015 2015 at constant rates 2014 16.4% 17.3% 18.1% Americas 13.1% 13.3% 13.0% 20.1% 20.4% 19.2% EMEA 12.3% 12.4% 11.0% 18.4% 18.4% 19.1% Asia Pacific 10.6% 11.0% 10.7% 27.2% 26.1% 26.8% LaSalle 34.2% 34.0% 32.3% 18.7% 19.2% 19.2% Consolidated 14.5% 14.6% 13.8% Americas 40.8% $125 Americas 42.1% $314
Americas EMEA Asia Pacific Total RES Leasing $374.9 9% $103.4 -3% $87.7 4% $566.0 5% Capital Markets & Hotels $105.4 12% $176.1 2% $50.4 -20% $331.9 1% Property & Facility Management Fee $154.1 11% $68.1 4% $115.3 14% $337.5 10% Gross Revenue $206.7 6% $85.2 -7% $149.7 6% $441.6 3% Project & Development Services - Fee $81.5 17% $58.7 42% $21.2 1% $161.4 23% Gross Revenue $83.0 17% $163.0 68% $32.7 -1% $278.7 39% Advisory, Consulting & Other $44.5 11% $86.2 -2% $41.5 27% $172.2 7% Total RES Operating Fee Revenue $760.4 11% $492.5 4% $316.1 5% $1,569.0 7% Total Gross Revenue $814.5 9% $613.9 10% $362.0 2% $1,790.4 8% Note: Segment and Consolidated Real Estate Services (“RES”) operating revenue exclude Equity earnings (losses). Fee revenue presentation of Property & Facility Management, Project & Development Services and Total RES Operating Revenue excludes gross contract costs. Q4 2015 Real Estate Services revenue ($ in millions; % change in USD over Q4 2014) 15
Note: Segment and Consolidated Real Estate Services (“RES”) operating revenue exclude Equity earnings (losses). Fee revenue presentation of Property & Facility Management, Project & Development Services and Total RES Operating Revenue excludes gross contract costs. FY 2015 Real Estate Services revenue ($ in millions; % change in USD over FY 2014) Americas EMEA Asia Pacific Total RES Leasing $1,165.6 12% $289.4 -2% $214.5 4% $1,669.5 8% Capital Markets & Hotels $331.6 24% $474.8 15% $149.4 3% $955.8 16% Property & Facility Management Fee $499.3 10% $224.4 -5% $404.5 7% $1,128.2 5% Gross Revenue $706.1 7% $304.8 -10% $546.5 4% $1,557.4 2% Project & Development Services - Fee $258.0 16% $170.1 22% $81.9 13% $510.0 17% Gross Revenue $263.3 17% $487.1 37% $131.7 2% $882.1 24% Advisory, Consulting & Other $138.9 11% $247.0 6% $118.0 10% $503.9 8% Total RES Operating Fee Revenue $2,393.4 14% $1,405.7 7% $968.3 7% $4,767.4 10% Total Gross Revenue $2,605.5 13% $1,803.1 10% $1,160.1 5% $5,568.7 10% 16
• Reimbursable vendor, subcontractor and out-of-pocket costs reported as revenue and expense in JLL financial statements have been increasing steadily • Gross accounting requirements increase revenue and costs without corresponding increase to profit • Business managed on a fee revenue basis to focus on margin expansion in the base business Revenue Gross contract costs Fee revenue Operating expenses Gross contract costs Fee-based operating expenses Operating income Restructuring and acquisition charges Adjusted operating income Adjusted operating income margin Fee revenue / expense reconciliation ($ in millions) Note: Consolidated revenue and fee revenue exclude equity earnings (losses). Restructuring and acquisition charges are excluded from adjusted operating income margin. Three Months Ended December 31 Twelve Months Ended December 31 2015 2014 2015 2014 $ 1,887.4 $ 1,749.0 $ 5,965.7 $ 5,429.6 (221.3) (191.6) (801.3) (727.9) $ 1,666.1 $ 1,557.4 $ 5,164.4 $ 4,701.7 $ 1,633.6 $ 1,487.2 $ 5,435.9 $ 4,963.9 (221.3) (191.6) (801.3) (727.9) $ 1,412.3 $ 1,295.6 $ 4,634.6 $ 4,236.0 $ 253.8 $ 261.8 $ 529.8 $ 465.7 13.4 3.3 34.1 42.5 $ 267.2 $ 265.1 $ 563.9 $ 508.2 16.0% 17.0% 10.9% 10.8% 17
Reconciliation of GAAP Net Income to Adjusted Net Income and Earnings Per Share ($ in millions) GAAP net income attributable to common shareholders Shares (in 000s) GAAP diluted earnings per share GAAP net income attributable to common shareholders Restructuring and acquisition charges, net Adjusted net income Shares (in 000s) Adjusted diluted earnings per share Currency impact on adjusted diluted earnings per share Adjusted diluted earnings per share - local currency Three Months Ended December 31 Twelve Months Ended December 31 2015 2014 2015 2014 $ 195.9 $ 193.8 $ 438.4 $ 385.7 45,492 45,332 45,415 45,261 $ 4.31 $ 4.28 $ 9.65 $ 8.52 $ 195.9 $ 193.8 $ 438.4 $ 385.7 10.1 2.5 16.1 6.0 $ 206.0 $ 196.3 $ 454.5 $ 391.7 45,492 45,332 45,415 45,261 $ 4.53 $ 4.33 $ 10.01 $ 8.65 0.42 0.87 $ 4.95 $ 10.88 18
Reconciliation of GAAP Net Income to Adjusted EBITDA ($ in millions) GAAP net income Interest expense, net of interest income Provision for (benefit from) income taxes Depreciation and amortization EBITDA Restructuring and acquisition charges Adjusted EBITDA JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. Three Months Ended December 31 Twelve Months Ended December 31 2015 2014 2015 2014 $ 198.5 $ 194.8 $ 446.3 $ 388.0 7.8 6.7 28.1 28.3 61.2 67.7 132.8 97.6 31.1 27.1 108.1 94.4 $ 298.6 $ 296.3 $ 715.3 $ 608.3 13.4 3.3 34.1 42.5 $ 312.0 $ 299.6 $ 749.4 $ 650.8 19
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