EXHIBIT 99
----------
For Immediate Release 200 East Randolph Drive
Chicago Illinois 60601
22 Hanover Square
London W1A 2BN
Contact: Bill Sullivan
Chief Financial Officer
Phone: +1 312 228 2685
JONES LANG LASALLE REPORTS STRONG THIRD QUARTER RESULTS
Revenues and Profits Solid Despite Weakness
in Certain Key Market Currencies
CHICAGO AND LONDON, OCTOBER 31, 2000 - Jones Lang LaSalle Incorporated
(NYSE: JLL), the leading global real estate services provider and
investment management firm, today reported strong operating performance for
the third quarter ended September 30, 2000, despite the continuing strength
of the US dollar versus currencies in certain key markets in which the
company operates.
Jones Lang LaSalle reported revenue of $224.6 million for the third quarter
2000, a 16 percent increase over 1999 third quarter revenue of $194.2
million. Operating performance for the quarter showed improvement year-
over-year, with the company reporting adjusted operating income and
adjusted EBITDA of $28.6 million and $38.8 million, respectively, for the
third quarter versus adjusted operating income and adjusted EBITDA of $12.8
million and $22.4 million, respectively, for third quarter 1999. The
company reported adjusted net income for the third quarter, equal to $12.6
million, or $0.41 per diluted share, versus adjusted net income of $4.8
million, equal to $0.16 per diluted share for the third quarter 1999. As
has been previously communicated, the company changed its method of
estimating and allocating bonus incentive compensation to interim periods.
For the third quarter 2000, the pre-tax effect of the change in methodology
equaled $10.3 million, or $0.21 per diluted share.
The adjusted results for the third quarter of both 1999 and 2000 exclude
the non-cash compensation expenses associated with the accounting of the
Jones Lang Wootton merger. Jones Lang LaSalle reported an actual net loss
for the third quarter 2000 of $5.3 million, or $0.21 per diluted share,
compared with an actual net loss of $16.9 million, or $0.70 per diluted
share in the comparable prior year period. The actual third quarter 2000
loss includes $18.0 million of pre-tax non-cash compensation expense
associated with the accounting for the merger between LaSalle Partners and
Jones Lang Wootton. The third quarter 1999 included $25.7 million of
merger-related compensation, integration and transition expense.
"Our year-to-date and third quarter results demonstrate the power of our
global platform and our client performance capabilities," said Stuart L.
Scott, Chairman and Chief Executive Officer of Jones Lang LaSalle. "We are
extremely pleased with our accomplishments and our ability to achieve
nearly 20 percent growth in year-to-date revenues over pro forma 1999,
despite the continuing weakness of the Pound Sterling, the Euro and the
Australian Dollar."
BUSINESS SEGMENT PERFORMANCE HIGHLIGHTS
---------------------------------------
According to Chris Peacock, President and Chief Operating Officer of Jones
Lang LaSalle, robust growth in the European Owner and Occupier Services and
LaSalle Investment Management operations were key drivers of the company's
financial performance during the third quarter. "The underlying strength
of our local businesses in Europe and the Americas has contributed to our
overall success this year and will likely drive our performance in the
fourth quarter," added Mr. Peacock.
<PAGE>
JONES LANG LASALLE REPORTS STRONG THIRD QUARTER RESULTS -- Add One
The following is a summary of business segment results for the third
quarter and the year to date with comparisons to 1999 results. The pro
forma business segment results for the nine months ending September 30,
1999 are inclusive of the operating results of the Jones Lang Wootton
companies for the two months ended February 28, 1999.
OWNER AND OCCUPIER SERVICES
---------------------------
Jones Lang LaSalle's Owner and Occupier Services segment includes
management and transaction services, two of the company's three core
businesses, which are delivered through its Americas, European and Asia
Pacific geographic regions.
The Americas region reported third quarter operating income of $9.7 million
on revenues of $80.8 million compared to operating income of $7.0 million
on revenues of $74.0 million in the third quarter 1999, an improvement of
$2.7 million. Consistent with historical seasonal trends, the Americas'
reported an operating loss for the nine months ended September 30, 2000 of
$1.7 million on revenues of $196.6 million compared to a pro forma
operating loss of $26.5 million on pro forma revenues of $176.3 million for
the same period in 1999. The improved year-over-year operating performance
reflects the success in growing the segment's revenue base as well as
benefits from implementing regional cost-savings initiatives and the impact
of changing the company's method of estimating and allocating bonus-
incentive compensation.
For the third quarter ended September 30, 2000, despite the weakness of the
Euro and the Pound Sterling, the European region delivered 17 percent year-
over-year revenue growth and generated third quarter operating income of
$11.8 million on total revenues of $79.4 million, versus operating income
of $166,000 on revenues of $67.8 million in the third quarter 1999.
The improved quarter-over-quarter operating performance in Europe largely
reflects the success in growing the revenue base coupled with the impact
from the change in the company's method of estimating and allocating bonus-
incentive compensation. For the nine-month period ended September 30,
2000, the European region reported operating income of $24.0 million on
revenues of $251.1 million compared to pro forma operating income of $10.8
million on pro forma revenues of $200.9 million in the nine months ended
September 30, 1999. The year-over-year increase in revenues and operating
expenses reflects the addition of significant new business, along with the
infrastructure costs required to support the growing Pan-European business
base.
The Asia Pacific region reported a third quarter operating loss of $1.8
million on total revenue of $31.6 million, versus operating income of $3.5
million on total revenue of $31.7 million in the comparable prior year
period. The region reported a year-to-date operating loss of $2.8 million
on revenues of $95.4 million, a deterioration of $3.3 million against pro
forma operating income of $493,000 on pro forma revenues of $89.9 million
for the same period in 1999. The year-over-year operating performance
reflects increased operating costs associated with implementing a new
infrastructure to support the long-term growth potential for the Asia
Pacific business, as well as the weakness of the Australian market
following the implementation of the new Goods and Services Tax and the
curbed transaction activity resulting from the Summer Olympics.
<PAGE>
JONES LANG LASALLE REPORTS STRONG THIRD QUARTER RESULTS -- Add Two
HOTEL SERVICES
--------------
Hotel Services reported an operating loss of $425,000 for the third quarter
2000 on revenue of $2.8 million, versus operating income of $488,000 on
revenues of $3.7 million in the third quarter 1999. The third quarter
performance was attributed to the timing of transactions that are now
expected to close in the fourth quarter. The reported operating loss was
$7,000 on revenues of $10.5 million for the first nine months of 2000,
compared to a pro forma operating loss of $142,000 on pro forma revenues of
$9.1 million in the prior 1999 period.
INVESTMENT MANAGEMENT
---------------------
LaSalle Investment Management recorded revenues of $30.5 million in the
third quarter of 2000 that generated operating income of $9.3 million,
versus revenues of $18.6 million and operating income of $1.6 million in
the comparable prior year period. The third quarter includes performance-
related fees of $7.4 million from the Oregon Public Employees Retirement
Fund (OPERF) account following the company's resignation of this business.
Operating income through September 30, 2000 was $22.5 million on revenues
of $84.5 million, compared to pro forma operating income of $5.2 million
generated by pro forma revenues of $58.8 million in the first nine months
of 1999. The 2000 year-to-date results also include the equity earnings
associated with the sale and performance-related gain from the commencement
of the previously announced liquidation of the segment's Francilienne
portfolio.
PERFORMANCE OUTLOOK
-------------------
Commenting on the company's outlook for the fourth quarter 2000, Stuart
Scott said, "At the beginning of the year, our management plan called for
30 percent growth in adjusted net earnings per share from a base of $1.07
per share in 1999, equating to $1.39 per share for the year 2000. When we
developed the original plan for the year, we assumed exchange rates of
$1.62, $1.04 and $0.64 for the Pound Sterling, the Euro and the Australian
Dollar, respectively, for 2000. These currencies were trading at or above
those rates when our business plans were developed, and the consensus
viewpoint of financial institutions we surveyed was that they would
strengthen throughout the year. Instead, 2000 has been characterized by
significant weakness in these currencies versus the US Dollar, such that as
of September 30, they were trading between eight and sixteen percent below
our assumed exchange rates."
Scott continued, "The strong year-to-date operating performance in our
European Owner and Occupier Services and LaSalle Investment Management
businesses has more than offset the year-to-date currency decline and
slowdown in Australia. For the fourth quarter, our expectation is that the
healthy performance of the European Owner and Occupier Services business
will continue, but that the continued strength of the US Dollar, the
slowdown in the Australian operations and the development of the regional
infrastructure across the Asia Pacific region will impact our overall
fourth quarter performance. The market already has taken into account the
currency impact on our annual results, with consensus estimates now at
$1.33 per share. Exclusive of SAB 101, we remain very confident that we
will meet or exceed the consensus estimates, a growth rate of at least 25
percent over 1999."
<PAGE>
JONES LANG LASALLE REPORTS STRONG THIRD QUARTER RESULTS -- Add Three
Chris Peacock added, "As we have stated in the past, like most companies,
we have not sought to incur the very real cost of hedging our operating
cash flows. From a purely economic view, our capital expenditure program in
the U.K., continental Europe and Australia, together with our co-investment
commitments in Euros this year act as a natural hedge to the operating
income stream. We put in place an additional natural hedge to the Euro
this summer with our very successful Euro 165 million bond financing,
further softening both the reporting and economic impact of the declining
Euro."
SAB 101
-------
As Jones Lang LaSalle has previously discussed, in December 1999, the SEC
issued Staff Accounting Bulletin 101 ("SAB 101"). Adoption of SAB 101 by
the company would result in the deferral of commission revenue, where the
contractual right to invoice was contingent on the occupancy of the leased
space by the tenant, until such contingency was satisfied. According to
William E. Sullivan, Chief Financial Officer of Jones Lang LaSalle, the
adoption of SAB 101 would not impact the amount of earnings that are
ultimately recognizable, nor would it impact the timing or amount of cash
flow to the company.
Jones Lang LaSalle had intended to adopt the provisions of the SEC's Staff
Accounting Bulletin 101 related to revenue recognition earlier in the year.
This was delayed, however, because the SEC did not issue its additional
interpretative guidance until the past few days.
"In agreement with our auditors, we believe it is prudent to delay the
adoption of SAB 101 until we have adequate opportunity to evaluate the
SEC's recently released interpretive guidance in this area," said Mr.
Sullivan. "Subject to our review of this new guidance over the next 30
days, we will adopt the provisions of SAB 101 in the fourth quarter of 2000
and any such adoption would be accounted for and reported as though it were
effective January 1, 2000."
Mr. Sullivan added, "Based on our initial understanding of the SEC's
interpretation of SAB 101, had we adopted SAB 101 as of January 1, 2000, we
would have recognized a one-time, non-cash charge of $13.9 million in the
first quarter. There would be no impact on our year-to-date 2000 adjusted
operating income and adjusted earnings per share. At this point, we cannot
fully estimate the impact of the adoption of SAB 101 on the fourth quarter
operations, given the significant seasonality of our business, particularly
in the Americas. The ultimate impact on fourth quarter operations will be
dependent upon the mix and timing of lease commission revenues, together
with the underlying contractual terms of the revenue contingencies."
Jones Lang LaSalle is the world's leading real estate services and
investment management firm, operating across more than 100 markets on five
continents. The company provides comprehensive integrated expertise,
including management services, transaction services and investment
management services on a local, regional and global level to owners,
occupiers and investors. LaSalle Investment Management, the company's
investment management business, is one of the world's largest and most
diverse real estate investment management firms, with $21.5 billion
(Euro Dollars 13.5 billion) of assets under management. Jones Lang
LaSalle is also the industry leader in property and corporate
facility management services, with a portfolio of approximately
700 million square feet (65 million square meters) under
management worldwide.
<PAGE>
JONES LANG LASALLE REPORTS STRONG THIRD QUARTER RESULTS -- Add Four
Statements in this press release regarding, among other things, future
financial results and performance, achievements, plans and objectives may
be considered forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements involve known
and unknown risks, uncertainties and other factors which may cause actual
results, performance, achievements, plans and objectives of Jones Lang
LaSalle to be materially different from those expressed or implied by such
forward-looking statements. Factors that could cause actual results to
differ materially include those 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 Jones Lang LaSalle's Annual Report on Form 10-K for the year ended
December 31, 1999, under "Management's Discussion and Analysis of Financial
Condition and Results of Operations," "Quantitative and Qualitative
Disclosures about Market Risk," and elsewhere in Jones Lang LaSalle's
Quarterly Reports on Form 10-Q for the quarters ended March 31, 2000 and
June 30, 2000 in Jones Lang LaSalle's Proxy Statement dated April 7, 2000
and in other reports filed with the Securities and Exchange Commission.
Statements speak only as of the date of this release. Jones Lang LaSalle
expressly disclaims any obligation or undertaking to update or revise any
forward-looking statements contained herein to reflect any change in Jones
Lang LaSalle's expectations or results, or any change in events.
NOTE TO EDITORS:
---------------
Media contacts may listen to the Jones Lang LaSalle third quarter results
discussion at 9 a.m. EST on November 1 by dialing +1 719 457 2646. The
replay may be accessed by dialing +1 719 457 0820 from noon EDT on November
1 through 5 p.m. EDT on November 8, 2000. The replay passcode is 452731.
A live webcast can also be accessed through http://www.videonewswire.com/
JONES/110100./
# # #
<PAGE>
<TABLE>
JONES LANG LA SALLE INCORPORATED
Consolidated Statements of Earnings and Comprehensive Income
For the Three and Nine Months Ended September 30, 2000 and 1999
(in thousands, except share data)
(Unaudited)
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
---------------------------- ----------------------------
2000 1999 2000 1999
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Revenue:
Fee based services. . . . . . . . $ 221,462 190,979 618,123 467,449
Equity in earnings from
unconsolidated ventures . . . . 1,116 2,371 15,803 4,422
Other income. . . . . . . . . . . 2,029 822 3,344 2,866
----------- ----------- ----------- -----------
Total revenue. . . . . . . . . 224,607 194,172 637,270 474,737
Operating expenses:
Compensation and benefits . . . . 134,349 135,170 407,122 335,249
Operating, administrative
and other . . . . . . . . . . . 51,390 36,587 156,357 115,177
Depreciation and amortization . . 10,298 9,665 31,789 26,726
----------- ----------- ----------- -----------
Total operating expenses
before merger related
non-recurring charges . . . 196,037 181,422 595,268 477,152
----------- ----------- ----------- -----------
Operating income (loss)
before merger related
non-recurring charges . . . 28,570 12,750 42,002 (2,415)
Merger related non-recurring charges:
Stock compensation expense. . . . 18,191 14,942 55,382 82,383
Integration and transition expense -- 10,800 -- 32,989
----------- ----------- ----------- -----------
Total merger related
non-recurring charges . . . 18,191 25,742 55,382 115,372
----------- ----------- ----------- -----------
Total operating expenses. . . 214,228 207,164 650,650 592,524
----------- ----------- ----------- -----------
Operating income (loss) . . . 10,379 (12,992) (13,380) (117,787)
Interest expense. . . . . . . . . . 8,226 4,967 21,565 12,312
----------- ----------- ----------- -----------
<PAGE>
JONES LANG LA SALLE INCORPORATED
Consolidated Statements of Earnings and Comprehensive Income - Continued
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
---------------------------- ----------------------------
2000 1999 2000 1999
---------- ---------- ---------- ----------
Income (loss) before provision
(benefit) for income taxes
and minority interest . . . 2,153 (17,959) (34,945) (130,099)
Net provision (benefit)
for income taxes. . . . . . 7,428 (1,022) 6,795 (20,043)
Minority interests in earnings
of subsidiaries . . . . . . . . . 60 -- 60 --
----------- ----------- ----------- -----------
Net loss. . . . . . . . . . . $ (5,335) (16,937) (41,800) (110,056)
=========== =========== =========== ===========
Other comprehensive income (loss),
net of tax:
Foreign currency translation
adjustments . . . . . . . . . . (4,137) 2,881 (15,290) 2,987
----------- ----------- ----------- -----------
Comprehensive loss. . . . . . $ (9,472) (14,056) (57,090) (107,069)
=========== =========== =========== ===========
Basic loss per common share . . . . $ (0.21) (0.70) (1.69) (4.98)
=========== =========== =========== ===========
Basic weighted average shares
outstanding . . . . . . . . . . . 25,168,964 24,110,884 24,701,106 22,109,143
=========== =========== =========== ===========
Diluted loss per common share . . . $ (0.21) (0.70) (1.69) (4.98)
=========== =========== =========== ===========
Diluted weighted average shares
outstanding . . . . . . . . . . . 25,168,964 24,110,884 24,701,106 22,109,143
=========== =========== =========== ===========
<FN>
Certain prior year amounts have been reclassified to conform with the current presentation.
</TABLE>
<PAGE>
<TABLE>
JONES LANG LASALLE INCORPORATED
Adjusted Actual and Adjusted Pro Forma Consolidated Statements of Earnings
For the Three and Nine Months Ended September 30, 2000 and 1999
(in thousands, except share data)
(Unaudited)
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
---------------------------- ----------------------------
2000 1999 2000 1999
Adjusted Adjusted Adjusted Adjusted
Actual (2) Pro Forma (1) Actual (2) Pro Forma (1)
----------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
Revenue:
Fee-based services. . . . . . . . $ 221,462 190,979 618,123 525,488
Equity in earnings from
unconsolidated ventures . . . . 1,116 2,371 15,803 4,422
Other income. . . . . . . . . . . 2,029 822 3,344 3,287
----------- ----------- ----------- -----------
Total revenue . . . . . . . 224,607 194,172 637,270 533,197
Operating expenses:
Compensation and benefits . . . . 134,349 135,170 407,122 378,859
Operating, administrative
and other . . . . . . . . . . . 51,390 36,587 156,357 134,637
Depreciation and amortization . . 10,298 9,665 31,789 29,773
----------- ----------- ----------- -----------
Total operating expenses
before merger related
non-recurring charges . . . 196,037 181,422 595,268 543,269
----------- ----------- ----------- -----------
Adjusted operating income
(loss) before merger related
non-recurring charges . . . 28,570 12,750 42,002 (10,072)
Interest expense. . . . . . . . . . 8,226 4,967 21,565 12,219
----------- ----------- ----------- -----------
Adjusted income (loss) before
provision (benefit) for income
taxes and minority interest 20,344 7,783 20,437 (22,291)
Net provision (benefit)
for income taxes. . . . . . . . . 7,731 2,958 7,766 (8,622)
Minority interests in earnings
of subsidiaries . . . . . . . . . 60 -- 60 --
----------- ----------- ----------- -----------
<PAGE>
JONES LANG LASALLE INCORPORATED
Adjusted Actual and Adjusted Pro Forma Consolidated Statements of Earnings - Continued
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
---------------------------- ----------------------------
2000 1999 2000 1999
Adjusted Adjusted Adjusted Adjusted
Actual (2) Pro Forma (1) Actual (2) Pro Forma (1)
----------- ------------ ----------- -------------
Adjusted net earnings (loss)
excluding merger related
non-recurring charges . . . . . . $ 12,553 4,825 12,611 (13,669)
=========== =========== =========== ===========
Adjusted EBITDA (3) . . . . . . . . $ 38,808 22,415 73,731 19,701
=========== =========== =========== ===========
Adjusted income (loss)
per common share (4). . . . . . . $ 0.41 0.16 0.41 (0.45)
=========== =========== =========== ===========
Adjusted weighted average shares
outstanding (4) . . . . . . . . . 30,755,066 30,189,696 30,679,303 30,140,999
=========== =========== =========== ===========
<FN>
(1) 1999 Adjusted Pro Forma results give effect to the operating results of the Jones Lang Wootton
companies for the two months ended February 28, 1999, the period prior to their merger with LaSalle Partners
Incorporated, amortization expense of the goodwill resulting from the merger as if the merger occurred on January
1, 1999, and a benefit for taxes as if the Jones Lang Wootton companies and LaSalle Partners Incorporated were
taxable entities at an effective tax rate of 40% as of January 1, 1999. No effect has been given to the
compensation expense incurred associated with the issuance of shares to former employees of Jones Lang Wootton.
Further, this analysis excludes the effect of non-capitalizable integration and transition expenses associated
with the merger with Jones Lang Wootton and the acquisition of Compass. This analysis is not intended to be a
presentation in accordance with generally accepted accounting principles.
(2) The Adjusted Actual three and nine months ended September 30, 2000 exclude the effect of merger
related non-recurring stock compensation expense incurred associated with the issuance of shares to former
employees of Jones Lang Wootton. This analysis is not intended to be a presentation in accordance with generally
accepted accounting principles.
(3) Adjusted EBITDA represents earnings before interest expense, income taxes, depreciation and
amortization and merger related non-recurring charges. Merger related non-recurring charges represent non-cash
compensation expense resulting from the issuance of shares to former Jones Lang Wootton employees including the
effect of quarterly adjustments on certain of those shares as a result of changes in the stock price, in addition
to non-capitalizable integration and transition costs incurred related to the merger with Jones Lang Wootton and
the acquisition of Compass.
(4) Adjusted earnings per common share represents adjusted net earnings divided by the weighted average
committed shares outstanding. Committed shares are inclusive of shares subject to forfeiture, vesting and
indemnity provisions which are not considered in the calculation of weighted average basic or diluted shares
outstanding under generally accepted accounting principles.
Certain prior year amounts have been reclassified to conform with the current presentation.
</TABLE>
<PAGE>
<TABLE>
JONES LANG LA SALLE INCORPORATED
Segment Operating Results
Adjusted Actual and Adjusted Pro Forma Results
for the Three and Nine Months ended September 30, 2000 and 1999
(in thousands)
(Unaudited)
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
---------------------------- ----------------------------
2000 1999 2000 1999
Adjusted Adjusted Adjusted Adjusted
Actual (1) Pro Forma (2) Actual (1) Pro Forma (2)
----------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
OWNER & OCCUPIER SERVICES -
AMERICAS
Revenue:
Implementation services . . $ 43,581 45,592 98,792 91,471
Management services . . . . 37,001 26,257 96,958 81,606
Equity earnings (losses). . (444) 178 (510) 279
Other services. . . . . . . 224 319 599 1,211
Intersegment revenue. . . . 412 1,619 790 1,759
----------- ----------- ----------- -----------
80,774 73,965 196,629 176,326
Operating expenses:
Compensation, operating and
administrative expenses . 66,085 61,895 182,494 187,349
Depreciation and
amortization. . . . . . . 4,989 5,076 15,855 15,433
----------- ----------- ----------- -----------
Operating income (loss) $ 9,700 6,994 (1,720) (26,456)
=========== =========== =========== ===========
EUROPE
Revenue:
Implementation services . . $ 59,872 51,493 189,722 156,846
Management services . . . . 18,770 16,018 60,115 43,283
Equity losses . . . . . . . -- (132) -- (225)
Other services. . . . . . . 731 416 1,278 986
----------- ----------- ----------- -----------
79,373 67,795 251,115 200,890
<PAGE>
JONES LANG LA SALLE INCORPORATED
Segment Operating Results
Adjusted Actual and Adjusted Pro Forma Results - Continued
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
---------------------------- ----------------------------
2000 1999 2000 1999
Adjusted Adjusted Adjusted Adjusted
Actual (1) Pro Forma (2) Actual (1) Pro Forma (2)
----------- ------------ ----------- -------------
Operating expenses:
Compensation, operating and
administrative expenses . 64,667 65,230 218,697 183,081
Depreciation and
amortization. . . . . . . 2,868 2,399 8,456 7,013
----------- ----------- ----------- -----------
Operating income. . . . $ 11,838 166 23,962 10,796
=========== =========== =========== ===========
ASIA PACIFIC
Revenue:
Implementation services . . $ 19,639 21,152 59,932 57,895
Management services . . . . 10,935 10,560 34,020 31,346
Other services. . . . . . . 1,040 (35) 1,400 619
----------- ----------- ----------- -----------
31,614 31,677 95,352 89,860
Operating expenses:
Compensation, operating and
administrative expenses . 31,913 26,973 93,607 85,112
Depreciation and
amortization. . . . . . . 1,511 1,200 4,526 4,255
----------- ----------- ----------- -----------
Operating income (loss) $ (1,810) 3,504 (2,781) 493
=========== =========== =========== ===========
HOTEL SERVICES -
Revenue:
Implementation services . . $ 3,481 3,455 10,453 8,554
Management services . . . . (724) 6 22 (23)
Other services. . . . . . . -- 254 2 586
----------- ----------- ----------- -----------
2,757 3,715 10,477 9,117
Operating expenses:
Compensation, operating and
administrative expenses . 3,138 3,182 10,384 9,096
Depreciation and
amortization. . . . . . . 44 45 100 163
----------- ----------- ----------- -----------
Operating income (loss) $ (425) 488 (7) (142)
=========== =========== =========== ===========
<PAGE>
JONES LANG LA SALLE INCORPORATED
Segment Operating Results
Adjusted Actual and Adjusted Pro Forma Results - Continued
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
---------------------------- ----------------------------
2000 1999 2000 1999
Adjusted Adjusted Adjusted Adjusted
Actual (1) Pro Forma (2) Actual (1) Pro Forma (2)
----------- ------------ ----------- -------------
INVESTMENT MANAGEMENT -
Revenue:
Implementation services . . $ 1,317 2,114 5,315 8,558
Advisory fees . . . . . . . 27,598 14,153 62,802 45,534
Equity earnings . . . . . . 1,560 2,325 16,313 4,368
Other services. . . . . . . 26 47 57 303
----------- ----------- ----------- -----------
30,501 18,639 84,487 58,763
Operating expenses:
Compensation, operating and
administrative expenses . 20,348 16,096 59,087 50,617
Depreciation and
amortization. . . . . . . 886 945 2,852 2,909
----------- ----------- ----------- -----------
Operating income. . . . $ 9,267 1,598 22,548 5,237
=========== =========== =========== ===========
Total segment revenue . . . . . . . $ 225,019 195,791 638,060 534,956
Intersegment revenue eliminations . (412) (1,619) (790) (1,759)
----------- ----------- ----------- -----------
Total revenue . . . . . $ 224,607 194,172 637,270 533,197
=========== =========== =========== ===========
Total segment operating expenses. . $ 196,449 183,041 596,058 545,028
Intersegment operating expense
eliminations. . . . . . . . . . . (412) (1,619) (790) (1,759)
----------- ----------- ----------- -----------
Total operating expenses
before merger related
non-recurring charges . $ 196,037 181,422 595,268 543,269
=========== =========== =========== ===========
Operating income (loss)
before merger related
non-recurring charges . $ 28,570 12,750 42,002 (10,072)
=========== =========== =========== ===========
<PAGE>
JONES LANG LA SALLE INCORPORATED
Segment Operating Results
Adjusted Actual and Adjusted Pro Forma Results - Continued
<FN>
(1) 2000 Adjusted Actual results give no effect to the compensation expense incurred associated with the
issuance of shares to former employees of Jones Lang Wootton. This analysis is not intended to be a presentation
in accordance with generally accepted accounting principles.
(2) 1999 Adjusted Pro Forma results give effect to the operating results of the Jones Lang Wootton
companies for the two months ended February 28, 1999, the period prior to their merger with LaSalle Partners
Incorporated and amortization expense of the goodwill resulting from the merger as if the merger occurred on
January 1, 1999. No effect has been given to the compensation expense incurred associated with the issuance of
shares to former employees of Jones Lang Wootton. Further, this analysis excludes the effect of non-capitalizable
integration and transition expenses associated with the merger with Jones Lang Wootton and the acquisition of
Compass. This analysis is not intended to be a presentation in accordance with generally accepted accounting
principles.
Certain prior year amounts have been reclassified to conform with the current presentation.
</TABLE>
<PAGE>
JONES LANG LASALLE INCORPORATED
Consolidated Balance Sheets
September 30, 2000 and December 31, 1999
(in thousands)
(Unaudited)
SEPTEMBER 30, DECEMBER 31,
2000 1999
------------- -----------
ASSETS
------
Current assets:
Cash and cash equivalents . . . . . . .$ 17,467 23,308
Trade receivables, net of allowances. . 225,540 270,593
Notes receivable and advances to
real estate ventures. . . . . . . . . 3,466 4,519
Other receivables . . . . . . . . . . . 4,397 7,045
Income tax refund receivable. . . . . . 1,093 14,500
Prepaid expenses. . . . . . . . . . . . 10,857 9,598
Deferred tax assets . . . . . . . . . . 16,022 13,673
Other assets. . . . . . . . . . . . . . 9,340 5,446
---------- ----------
Total current assets. . . . . . . 288,182 348,682
Property and equipment, at cost,
less accumulated depreciation . . . . . 82,730 76,470
Intangibles resulting from business
acquisitions and JLW merger, net
of accumulated amortization . . . . . . 348,571 367,215
Investments in real estate ventures . . . 71,412 67,305
Other investments . . . . . . . . . . . . 12,410 --
Long-term receivables, net. . . . . . . . 23,360 27,962
Prepaid pension asset . . . . . . . . . . 19,239 23,956
Deferred tax assets . . . . . . . . . . . 5,222 5,270
Debt issuance costs . . . . . . . . . . . 5,235 2,279
Other assets, net . . . . . . . . . . . . 6,851 5,661
---------- ----------
$ 863,212 924,800
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current liabilities:
Accounts payable and
accrued liabilities . . . . . . . . . $ 82,639 88,257
Accrued compensation. . . . . . . . . . 109,131 142,960
Short-term borrowings . . . . . . . . . 13,293 162,643
Deferred tax liabilities. . . . . . . . 36 --
Other liabilities . . . . . . . . . . . 18,499 26,259
---------- ----------
Total current liabilities . . . . 223,598 420,119
Long-term liabilities:
Credit facilities . . . . . . . . . . . 146,493 159,743
Notes . . . . . . . . . . . . . . . . . 146,378 --
Deferred tax liabilities. . . . . . . . 6,629 7,535
Other . . . . . . . . . . . . . . . . . 14,141 12,878
---------- ----------
Total liabilities . . . . . . . . 537,239 600,275
<PAGE>
JONES LANG LASALLE INCORPORATED
Consolidated Balance Sheets - Continued
SEPTEMBER 30, DECEMBER 31,
2000 1999
------------- -----------
Minority Interest . . . . . . . . . . . . 640 589
Stockholders' equity:
Common stock, $.01 par value per share,
100,000,000 shares authorized;
30,861,683, and 30,285,472 shares
issued and outstanding as of
September 30, 2000 and December 31,
1999, respectively. . . . . . . . . . 309 303
Additional paid-in capital. . . . . . . 452,648 442,699
Unallocated ESOT shares . . . . . . . . (7) (7)
Deferred stock compensation . . . . . . (21,574) (70,106)
Retained deficit. . . . . . . . . . . . (91,850) (50,050)
Accumulated other comprehensive
income (loss) . . . . . . . . . . . . (14,193) 1,097
---------- ----------
Total stockholders' equity. . . . 325,333 323,936
---------- ----------
$ 863,212 924,800
========== ==========
