SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q/A
AMENDMENT NO. 1
Filed pursuant to Section 12, 13, or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended
September 30, 2000 Commission File Number 1-13145
JONES LANG LASALLE INCORPORATED
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Maryland 36-4150422
----------------------- ------------------------------------
(State of organization) (I.R.S. Employer Identification No.)
200 East Randolph Drive, Chicago, IL 60601
--------------------------------------- ----------
(Address of principal executive office) (Zip Code)
The Quarterly Report on Form 10-Q of Jones Lang LaSalle Incorporated
for the period ended September 30, 2000 (the "September 2000 Form 10-Q") is
being amended by this Form 10-Q/A (1) to revise the number of shares
outstanding at November 10, 2000 as stated on the cover page and (2) to
revise Item 1 by removing the line items "Total operating expenses before
merger related non-recurring charges," "Operating income (loss) before
merger related non-recurring charges," and "Total merger related non-
recurring charges" from the Consolidated Statements of Earnings and
Comprehensive Income.
No other changes have been made to the September 2000 Form 10-Q.
The undersigned registrant hereby amends the following section of its
Report for the quarterly period ended September 30, 2000 on Form 10-Q as
set forth in the pages attached hereto:
COVER
Item 1. Financial Statements - Pages 3 - 27
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
JONES LANG LASALLE INCORPORATED
/S/ WILLIAM E. SULLIVAN
----------------------------------
By: William E. Sullivan
Executive Vice President
and Chief Financial Officer
(Authorized Officer and
Principal Financial Officer)
Dated: December 26, 2000
<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2000
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM __________ TO __________
Commission file number 1-13145
JONES LANG LASALLE INCORPORATED
-----------------------------------------------------
(Exact name of registrant as specified in its charter)
Maryland 36-4150422
------------------------- ---------------------------------
(State or other jurisdic- (IRS Employer Identification No.)
tion of incorporation or
organization)
200 East Randolph Drive, Chicago, IL 60601
--------------------------------------- ----------
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code 312/782-5800
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes [ X ] No [ ]
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
Outstanding at
Class November 10, 2000
----- -----------------
Common Stock ($0.01 par value) 30,866,588
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
JONES LANG LASALLE INCORPORATED
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2000 AND DECEMBER 31, 1999
(in thousands, except share data)
(UNAUDITED)
SEPTEMBER 30, DECEMBER 31,
2000 1999
------------- -----------
ASSETS
------
Current assets:
Cash and cash equivalents. . . . . . . . . $ 17,467 23,308
Trade receivables, net of allowances
of $9,928 and $9,871 in 2000
and 1999, respectively . . . . . . . . . 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 of $70,014
and $55,943 in 2000 and 1999,
respectively . . . . . . . . . . . . . . . 82,730 76,470
Intangibles resulting from business
acquisitions and JLW merger, net of
accumulated amortization of $38,875
and $27,515 in 2000 and 1999,
respectively . . . . . . . . . . . . . . . 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
Commitments and contingencies
<PAGE>
JONES LANG LASALLE INCORPORATED
CONSOLIDATED BALANCE SHEETS - CONTINUED
SEPTEMBER 30, 2000 AND DECEMBER 31, 1999
(in thousands, except share data)
(UNAUDITED)
SEPTEMBER 30, DECEMBER 31,
2000 1999
------------- -----------
Minority interest in consolidated
subsidiaries . . . . . . . . . . . . . . . 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 2000
and 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
========== ==========
See accompanying notes to consolidated financial statements.
<PAGE>
<TABLE>
JONES LANG LASALLE INCORPORATED
CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME
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
Merger related non-recurring charges:
Stock compensation expense . . . . . 18,191 14,942 55,382 82,383
Integration and transition expenses. -- 10,800 -- 32,989
---------- ---------- ---------- ----------
Total operating expenses . . . 214,228 207,164 650,650 592,524
---------- ---------- ---------- ----------
Operating income (loss). . . . 10,379 (12,992) (13,380) (117,787)
Interest expense, net of interest
income . . . . . . . . . . . . . . . 8,226 4,967 21,565 12,312
---------- ---------- ---------- ----------
<PAGE>
JONES LANG LASALLE INCORPORATED
CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME - CONTINUED
THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(in thousands, except share data)
(UNAUDITED)
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>
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
JONES LANG LASALLE INCORPORATED
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
PERIODS ENDED SEPTEMBER 30, 2000 AND DECEMBER 31, 1999
(in thousands, except share data)
(UNAUDITED)
<CAPTION>
Accumu-
lated
Other
Additi- Unallo- Deferred Compre-
Common Stock tional cated Stock Retained hensive
------------------- Paid-In ESOT Compen- Earnings Income
Shares Amount Capital Shares sation (Deficit) (Loss) Total
---------- ------ -------- ------- -------- --------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Balances at
December 31,
1998. . . . . . . . . 16,264,176 163 123,543 -- -- 44,792 1,074 169,572
Net loss. . . . . . -- -- -- -- -- (94,842) -- (94,842)
Shares issued in
connection with:
Stock option
plan . . . . . . 21,292 -- 495 -- -- -- -- 495
Stock purchase
programs . . . . 199,587 2 3,695 -- -- -- -- 3,697
Share activity
related to JLW
merger:
Shares issued
at closing . . . 14,254,116 143 355,233 (9) (160,253) -- -- 195,114
Adjustment
shares sub-
sequently
retained . . . . (453,699) (5) (8,462) -- -- -- -- (8,467)
ESOT shares
allocated. . . . -- -- 1,597 2 -- -- -- 1,599
Stock compensa-
tion adjust-
ments . . . . . . -- -- (33,402) -- 27,906 -- -- (5,496)
Amortization of
deferred stock
compensation. . . -- -- -- -- 62,241 -- -- 62,241
Cumulative effect
of foreign
currency
translation
adjustments . . . -- -- -- -- -- -- 23 23
---------- ----- ------- -------- -------- -------- -------- --------
<PAGE>
JONES LANG LASALLE INCORPORATED
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - CONTINUED
Accumu-
lated
Other
Additi- Unallo- Deferred Compre-
Common Stock tional cated Stock Retained hensive
------------------- Paid-In ESOT Compen- Earnings Income
Shares Amount Capital Shares sation (Deficit) (Loss) Total
---------- ------ -------- ------- -------- --------- ------- -------
Balances at
December 31,
1999. . . . . . . . . 30,285,472 303 442,699 (7) (70,106) (50,050) 1,097 323,936
Net loss . . . . . . . -- -- -- -- -- (41,800) -- (41,800)
Shares issued in
connection with:
Stock option plan. . 472,500 5 5,813 -- (5,818) -- -- --
Amortization of
shares issued
in connection
with stock
option plan . . . . -- -- -- -- 950 -- -- 950
Stock purchase
programs . . . . . 171,617 2 3,336 -- -- -- -- 3,338
Share activity re-
lated to JLW merger:
Shares repurchased
for payment of
taxes on ESOT
Shares allocated
at December 31,
1999 . . . . . . . (67,534) (1) (815) -- -- -- -- (816)
Adjustment shares
subsequently
retained . . . . . (372) -- (144) -- -- -- -- (144)
Stock compensa-
tion adjustments . . -- -- 1,759 -- (1,336) -- -- 423
Amortization of
deferred stock
compensation . . . . -- -- -- -- 54,736 -- -- 54,736
Other. . . . . . . . . -- -- -- -- -- -- (15,290) (15,290)
---------- ----- ------- ------- -------- -------- -------- --------
Balances at
September 30,
2000 . . . . . . . . 30,861,683 $ 309 452,648 (7) (21,574) (91,850) (14,193) 325,333
========== ===== ======= ======= ======== ======== ======== ========
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
JONES LANG LASALLE INCORPORATED
CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(in thousands, unless otherwise noted)
(UNAUDITED)
2000 1999
---------- ----------
Cash flows provided by (used in)
operating activities:
Net loss . . . . . . . . . . . . . . . . . . $ (41,800) (110,056)
Reconciliation of net loss to net cash
provided by (used in) operating activities:
Depreciation and amortization. . . . . . . 31,789 26,726
Equity in earnings from unconsolidated
ventures . . . . . . . . . . . . . . . . (15,803) (4,422)
Provision for loss on receivables and
other assets . . . . . . . . . . . . . . 5,336 1,544
Stock compensation expense . . . . . . . . 55,382 81,942
Amortization of deferred compensation. . . 2,449 --
Changes in:
Receivables. . . . . . . . . . . . . . . . 57,070 18,941
Prepaid expenses and other assets. . . . . 5,106 (4,146)
Deferred tax assets and income tax
refund receivable. . . . . . . . . . . . 10,511 (24,929)
Accounts payable, accrued liabilities
and accrued compensation . . . . . . . . (74,561) (50,528)
---------- ----------
Net cash provided by (used in)
operating activities . . . . . . . . 35,479 (64,928)
Cash flows used in investing activities:
Net capital additions - property and
equipment. . . . . . . . . . . . . . . . . (30,806) (23,641)
Cash paid in connection with Jones
Lang Wootton merger, net of cash
balances assumed . . . . . . . . . . . . . -- (37,375)
Other acquisitions and investments,
net of cash balances assumed . . . . . . . (13,048) (3,003)
Investments in real estate ventures:
Capital contributions and advances to
real estate ventures . . . . . . . . . . (9,159) (8,963)
Distributions, repayments of advances
and sale of investments. . . . . . . . . 21,302 25,055
---------- ----------
Net cash used in
investing activities . . . . . . . . (31,711) (47,927)
Cash flows provided by (used in)
financing activities:
Proceeds from borrowings under credit
facilities . . . . . . . . . . . . . . . . 229,998 262,156
Repayments of borrowings under credit
facilities . . . . . . . . . . . . . . . . (392,598) (147,775)
Net proceeds from issuance of the Euro
Notes. . . . . . . . . . . . . . . . . . . 149,454 --
Common stock issued under stock option
plan and stock purchase programs . . . . . 3,537 3,126
---------- ----------
Net cash provided by (used in)
financing activities . . . . . . . . (9,609) 117,507
---------- ----------
<PAGE>
JONES LANG LASALLE INCORPORATED
CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED
NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(in thousands, unless otherwise noted)
(UNAUDITED)
2000 1999
---------- ----------
Net increase (decrease) in
cash and cash equivalents. . . . . . (5,841) 4,652
Cash and cash equivalents,
beginning of period. . . . . . . . . . . . . 23,308 16,941
---------- ----------
Cash and cash equivalents, end of period . . . $ 17,467 21,593
========== ==========
Supplemental disclosure of cash flow
information:
Cash paid during the period for:
Interest . . . . . . . . . . . . . . . . . $ 17,405 13,524
Taxes, net of refunds. . . . . . . . . . . (3,407) 13,077
Non-cash investing and financing
activities:
Acquisitions, merger and investments:
Shares issued in connection with
merger . . . . . . . . . . . . . . . . $ -- 142,053
Fair value of assets acquired. . . . . . (14,474) (214,026)
Fair value of liabilities assumed. . . . 20,413 186,270
Goodwill . . . . . . . . . . . . . . . . (6,577) (154,675)
Other investments. . . . . . . . . . . . (12,410) --
---------- --------
Cash paid, net of cash
balances assumed . . . . . . . . . $ (13,048) (40,378)
========== ========
See accompanying notes to consolidated financial statements.
<PAGE>
JONES LANG LASALLE INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in millions, except where otherwise noted)
(UNAUDITED)
Readers of this quarterly report should refer to our audited financial
statements for the year ended December 31, 1999, which are included in our
1999 Form 10-K, filed with the Securities and Exchange Commission, as
certain footnote disclosures which would substantially duplicate those
contained in such audited financial statements have been omitted from this
report. Readers of this quarterly report should also refer to any Forms 8-
K filed with the Securities and Exchange Commission during the year 2000.
In particular, the Form 8-K dated August 11, 2000.
(1) ACCOUNTING POLICIES
INTERIM INFORMATION
The consolidated financial statements as of September 30, 2000 and
for the three and nine month periods ended September 30, 2000 and 1999 are
unaudited; however, in the opinion of management, all adjustments
(consisting solely of normal recurring adjustments) necessary for a fair
presentation of the consolidated financial statements for these interim
periods have been included. The results for the periods ended September
30, 2000 and 1999 are not necessarily indicative of the results to be
obtained for the full fiscal year.
Certain prior year amounts have been reclassified to conform with the
current presentation.
BONUS INCENTIVE COMPENSATION
In the first quarter of 2000, Jones Lang LaSalle changed its method
of estimating and allocating bonus incentive compensation to interim
periods. The impact of this change for the three and nine months ended
September 30, 2000 was to reduce compensation expense by approximately
$10.3 million and $19.0 million, respectively. This change does not impact
the overall compensation cost that will be incurred during the year ended
December 31, 2000, but rather the periods in which it is recognized.
EARNINGS PER SHARE
The basic and diluted losses per common share were calculated based
on basic weighted average shares outstanding of 25.2 million and 24.7
million for the three and nine month periods ended September 30, 2000,
respectively. For the three and nine months ended September 30, 1999,
basic and diluted losses per common share were calculated based on basic
weighted average shares outstanding of 24.1 million and 22.1 million,
respectively. As a result of the net losses incurred for these periods,
diluted weighted average shares outstanding do not give effect to common
stock equivalents, as to do so would be anti-dilutive. These common stock
equivalents consist principally of consideration shares issued in
connection with the JLW merger that are subject to vesting provisions or
are contingently returnable. To a lesser extent, common stock equivalents
also include outstanding stock options whose exercise price was less than
the average market price of Jones Lang LaSalle's stock for the period and
shares to be issued under employee stock compensation programs.
STATEMENT OF CASH FLOWS
The effects of foreign currency translation on cash balances are
reflected in cash flows from operating activities on the Consolidated
Statements of Cash Flows.
<PAGE>
(2) JONES LANG WOOTTON MERGER
On March 11, 1999, LaSalle Partners Incorporated merged its
businesses with those of the Jones Lang Wootton companies ("JLW") and
changed its name to Jones Lang LaSalle Incorporated. In accordance with
the purchase and sale agreements, Jones Lang LaSalle issued 14.3 million
shares of common stock and paid cash consideration of $6.2 million. This
transaction, which was principally structured as a share exchange, has been
treated as an acquisition and is being accounted for using both APB Opinion
No. 16, "Business Combinations" and APB Opinion No. 25, "Accounting for
Stock Issued to Employees." See our Annual Report on Form 10-K for the
fiscal year ended December 31, 1999 for a full discussion of this
transaction and the related accounting treatment.
The total value attributed to the issuance of the 7.2 million shares
accounted for under APB No. 16 of $141.9 million, in addition to the cash
payment of $6.2 million and capitalizable transaction costs of
approximately $15.8 million, have been allocated to the identifiable assets
acquired and liabilities assumed, based on management's estimates of fair
value, which totaled $251.4 million and $244.8 million, respectively. The
resulting excess purchase price of $157.3 million was allocated to goodwill
which is being amortized on a straight-line basis over 40 years based on
management's estimate of useful lives. Included in the assets acquired was
$32.2 million in cash and included in the liabilities assumed was $47.4
million of obligations to former partners of undistributed earnings. The
liabilities assumed also included employee termination costs of $9.3
million, as well as office rental payments in excess of sublease rental
income of $0.3 million and telecommunication lease termination costs of
$0.8 million related to the closing of offices with geographic overlap in
the United States. As of September 30, 2000, employee termination costs
have been paid. Approximately $0.8 million of office closure costs remain
unpaid as of September 30, 2000. These amounts will be paid through 2002.
In relation to the transaction, 4.6 million of the shares issued are
subject to forfeiture or vesting provisions and therefore, pursuant to APB
Opinion No. 25, have been accounted for as deferred compensation with
compensation expense to be recognized over the forfeiture or vesting
period. In addition, 1.3 million shares are deemed to be contingently
returnable and therefore, are being accounted for as a variable stock award
plan. Under a variable stock award plan, the amount of compensation expense
and value of deferred compensation will be adjusted at the end of each
quarter based on the change in stock price from the previous quarter until
the final number of shares to be issued is known.
Compensation expense incurred for the three and nine months ended
September 30, 2000 primarily related to the amortization of deferred
compensation totaled $18.2 million and $55.4 million, respectively, net of
the quarterly adjustment for the change in stock price. Compensation
expense incurred for the three and nine months ended September 30, 1999
related to the issuance of shares and amortization of deferred compensation
totaled $14.9 million and $82.4 million, respectively, net of the quarterly
adjustment for the change in stock price. Deferred compensation, related
to the issuance of shares to JLW, not yet amortized at September 30, 2000
totaled $16.7 million, including the effect of the quarterly adjustment for
the change in stock price, which will be amortized into compensation
expense during the remainder of 2000. Such compensation expense, in
addition to compensation expense anticipated to be incurred at December 31,
2000 associated with the final allocation of the shares in the employee
stock ownership trust ("ESOT"), is expected to result in a significant non-
cash net loss for Jones Lang LaSalle for the year.
<PAGE>
(3) BUSINESS SEGMENTS
Operations are classified into five business segments: two global
businesses, (i) Investment Management and (ii) Hotel Services; and Owner
and Occupier Services which is divided into three geographic regions, (iii)
the Americas, (iv) Europe and (v) Asia Pacific. The Investment Management
segment provides real estate investment management services to
institutional investors, corporations, and high net worth individuals. The
Hotels Services segment provides strategic advisory, sales, acquisition,
valuation and asset management services related solely to hotel, conference
and resort properties. Owner and Occupier Services consist primarily of
tenant representation and agency leasing, investment disposition,
acquisition, and valuation services (collectively, "implementation
services") and property management, corporate property services and
development and project management services (collectively, "management
services").
Total revenue by industry segment includes revenue derived from
services provided to other segments. Operating income represents total
revenue less direct and indirect allocable expenses. Jones Lang LaSalle
allocates all expenses, other than interest and income taxes, as nearly all
expenses incurred benefit one or more of the segments. Merger related non-
recurring charges are not allocated to the segments.
Operating results in 1999 include the results of JLW effective
March 1, 1999, therefore, segment results for the nine months ended
September 30, 1999 include only seven months of results of the former JLW
operations.
Summarized unaudited financial information by business segment for
the three and nine month periods ended September 30, 2000 and 1999 is as
follows ($ in thousands):
<PAGE>
<TABLE>
<CAPTION>
SEGMENT OPERATING RESULTS
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
---------------------------- ----------------------------
2000 1999 2000 1999
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
OWNER AND OCCUPIER SERVICES -
AMERICAS
Revenue:
Implementation services. . . . . . $ 43,581 45,592 98,792 87,800
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 73,965 196,629 172,655
Operating expenses:
Compensation, operating and
administrative expenses. . . . . 66,085 61,895 182,494 179,412
Depreciation and amortization. . . 4,989 5,076 15,855 15,152
---------- ---------- ---------- ----------
Operating income (loss). . . $ 9,700 6,994 (1,720) (21,909)
========== ========== ========== ==========
EUROPE
Revenue:
Implementation services. . . . . . $ 59,872 51,493 189,722 126,418
Management services. . . . . . . . 18,770 16,018 60,115 36,576
Equity losses. . . . . . . . . . . -- (132) -- (225)
Other services . . . . . . . . . . 731 416 1,278 820
---------- ---------- ---------- ----------
79,373 67,795 251,115 163,589
Operating expenses:
Compensation, operating and
administrative expenses. . . . . 64,667 65,230 218,697 146,605
Depreciation and amortization. . . 2,868 2,399 8,456 5,371
---------- ---------- ---------- ----------
Operating income . . . . . . $ 11,838 166 23,962 11,613
========== ========== ========== ==========
<PAGE>
SEGMENT OPERATING RESULTS
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
---------------------------- ----------------------------
2000 1999 2000 1999
---------- ---------- ---------- ----------
ASIA PACIFIC
Revenue:
Implementation services. . . . . . $ 19,639 21,152 59,932 49,520
Management services. . . . . . . . 10,935 10,560 34,020 25,114
Other services . . . . . . . . . . 1,040 (35) 1,400 204
---------- ---------- ---------- ----------
31,614 31,677 95,352 74,838
Operating expenses:
Compensation, operating and
administrative expenses. . . . . 31,913 26,973 93,607 68,387
Depreciation and amortization. . . 1,511 1,200 4,526 3,254
---------- ---------- ---------- ----------
Operating income (loss). . . $ (1,810) 3,504 (2,781) 3,197
========== ========== ========== ==========
HOTEL SERVICES -
Revenue:
Implementation services. . . . . . $ 3,481 3,455 10,453 7,232
Management services. . . . . . . . (724) 6 22 (23)
Other services . . . . . . . . . . -- 254 2 541
---------- ---------- ---------- ----------
2,757 3,715 10,477 7,750
Operating expenses:
Compensation, operating and
administrative expenses. . . . . 3,138 3,182 10,384 7,721
Depreciation and amortization. . . 44 45 100 106
---------- ---------- ---------- ----------
Operating income (loss). . . $ (425) 488 (7) (77)
========== ========== ========== ==========
<PAGE>
SEGMENT OPERATING RESULTS
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
---------------------------- ----------------------------
2000 1999 2000 1999
---------- ---------- ---------- ----------
INVESTMENT MANAGEMENT -
Revenue:
Implementation services. . . . . . $ 1,317 2,114 5,315 8,222
Advisory fees. . . . . . . . . . . 27,598 14,153 62,802 44,957
Equity earnings. . . . . . . . . . 1,560 2,325 16,313 4,368
Other services . . . . . . . . . . 26 47 57 117
---------- ---------- ---------- ----------
30,501 18,639 84,487 57,664
Operating expenses:
Compensation, operating and
administrative expenses. . . . . 20,348 16,096 59,087 50,060
Depreciation and amortization. . . 886 945 2,852 2,843
---------- ---------- ---------- ----------
Operating income . . . . . . $ 9,267 1,598 22,548 4,761
========== ========== ========== ==========
Total segment revenue. . . . . . . . . $ 225,019 195,791 638,060 476,496
Intersegment revenue eliminations. . . (412) (1,619) (790) (1,759)
---------- ---------- ---------- ----------
Total revenue. . . . . . . . $ 224,607 194,172 637,270 474,737
========== ========== ========== ==========
Total segment operating expenses . . . $ 196,449 183,041 596,058 478,911
Intersegment operating expense
eliminations . . . . . . . . . . . . (412) (1,619) (790) (1,759)
---------- ---------- ---------- ----------
Total operating expenses
before merger related
non-recurring charges. . . $ 196,037 181,422 595,268 477,152
========== ========== ========== ==========
Operating income (loss)
before merger related
non-recurring charges. . . $ 28,570 12,750 42,002 (2,415)
========== ========== ========== ==========
</TABLE>
<PAGE>
(4) SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL STATEMENTS
On July 26, 2000, Jones Lang LaSalle Finance B.V. ("JLL Finance"), a
wholly-owned subsidiary of Jones Lang LaSalle, issued 9% Senior Notes with
an aggregate principal amount of Euro 165 million, due 2007 (the "Euro
Notes"). The payment obligations under the Euro Notes are fully and
unconditionally guaranteed by Jones Lang LaSalle Incorporated and certain
of its wholly-owned subsidiaries; Jones Lang LaSalle America's Inc.,
LaSalle Investment Management, Inc., Jones Lang LaSalle International,
Inc., Jones Lang LaSalle Co-Investment, Inc., LaSalle Hotel Advisors, Inc.,
and Jones Lang LaSalle Ltd. (the "Guarantor Subsidiaries"). All of Jones
Lang LaSalle Incorporated's remaining subsidiaries (the "Non-Guarantor
Subsidiaries") are owned by the Guarantor Subsidiaries. The following
supplemental Condensed Consolidating Balance Sheets as of September 30,
2000 and December 31, 1999, Condensed Consolidating Statement of Earnings
for the three and nine months ended September 30, 2000 and September 30,
1999, and Condensed Consolidating Statement of Cash Flows for the nine
months ended September 30, 2000 and September 30, 1999 present financial
information for (i) Jones Lang LaSalle Incorporated (carrying any
investment in subsidiaries under the equity method), (ii) Jones Lang
LaSalle Finance B.V. (the issuer of the Euro Notes), (iii) on a combined
basis the Guarantor Subsidiaries (carrying any investment in Non-Guarantor
subsidiaries under the equity method) and (iv) on a combined basis the Non-
Guarantor Subsidiaries (carrying its investment in JLL Finance under the
equity method). Separate financial statements of the Guarantor
Subsidiaries are not presented because the guarantors are jointly,
severally, and unconditionally liable under the guarantees, and Jones Lang
LaSalle Incorporated believes that separate financial statements and other
disclosures regarding the Guarantor Subsidiaries are not material to
investors. In general, historically, Jones Lang LaSalle Incorporated has
entered into third party borrowings, financing its subsidiaries via
intercompany accounts that are then converted into equity on a periodic
basis. Certain Guarantor and Non-Guarantor Subsidiaries also enter into
third party borrowings on a limited basis. All intercompany activity has
been included as subsidiary activity in investing activities in the
Condensed Consolidating Statements of Cash Flows. Cash is managed on a
consolidated basis and there is a right of offset between bank accounts in
the different groupings of legal entities in the condensed consolidating
financial information. Therefore, in certain cases, negative cash balances
have not been reallocated to payables as they legally offset positive cash
balances elsewhere in Jones Lang LaSalle Incorporated. In certain cases,
taxes have been calculated on the basis of a group position that includes
both Guarantor and Non-Guarantor Subsidiaries. In such cases, the taxes
have been allocated to individual legal entities on the basis of that legal
entity's pre tax income.
<PAGE>
<TABLE>
JONES LANG LASALLE INCORPORATED
CONDENSED CONSOLIDATING BALANCE SHEET
As of September 30, 2000
($ in thousands)
<CAPTION>
Jones Lang
LaSalle Consolidated
Incorporated Jones Lang Jones Lang
(Parent and LaSalle Guarantor Non-Guarantor LaSalle
Guarantor) Finance B.V. Subsidiaries Subsidiaries Eliminations Incorporated
------------ ----------- ------------ ------------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
------
Cash and
cash equivalents . . . $ 2,155 126 (2,546) 17,732 -- 17,467
Trade receivables,
net of allowances. . . 88 -- 97,703 127,749 -- 225,540
Other current assets . . 17,530 -- 22,023 5,622 -- 45,175
---------- ---------- ---------- ---------- ---------- ----------
Total current
assets . . . . . . 19,773 126 117,180 151,103 -- 288,182
Property and equipment,
at cost, less accumu-
lated depreciation. . . 1,949 -- 49,904 30,877 -- 82,730
Intangibles resulting
from business acquisi-
tions and JLW merger,
net of accumulated
amortization. . . . . . -- -- 264,368 84,203 -- 348,571
Other assets, net. . . . 8,597 -- 51,977 83,155 -- 143,729
Investments in
subsidiaries. . . . . . 282,290 -- 283,370 141 (565,801) --
---------- ---------- ---------- ---------- ---------- ----------
$ 312,609 126 766,799 349,479 (565,801) 863,212
========== ========== ========== ========== ========== ==========
<PAGE>
JONES LANG LASALLE INCORPORATED
CONDENSED CONSOLIDATING BALANCE SHEET - CONTINUED
As of September 30, 2000
($ in thousands)
Jones Lang
LaSalle Consolidated
Incorporated Jones Lang Jones Lang
(Parent and LaSalle Guarantor Non-Guarantor LaSalle
Guarantor) Finance B.V. Subsidiaries Subsidiaries Eliminations Incorporated
------------ ----------- ------------ ------------- ------------ ------------
LIABILITIES AND
STOCKHOLDERS' EQUITY
--------------------
Accounts payable and
accrued liabilities. . $ 9,802 3,742 21,028 48,067 -- 82,639
Short-term borrowings. . -- -- 9,406 3,887 -- 13,293
Other current
liabilities. . . . . . (23,175) (295,945) 451,147 (4,361) -- 127,666
---------- ---------- ---------- ---------- ---------- ----------
Total current
liabilities. . . . (13,373) (292,203) 481,581 47,593 -- 223,598
Long-term liabilities:
Credit facilities. . . -- 146,493 -- -- -- 146,493
Notes. . . . . . . . . -- 145,695 539 144 -- 146,378
Other. . . . . . . . . 649 -- 2,389 17,732 -- 20,770
---------- ---------- ---------- ---------- ---------- ----------
Total liabilities. . (12,724) (15) 484,509 65,469 -- 537,239
Commitments and
contingencies
Minority interest in
consolidated
subsidiaries. . . . . . -- -- -- 640 -- 640
Stockholders' equity . . 325,333 141 282,290 283,370 (565,801) 325,333
---------- ---------- ---------- ---------- ---------- ----------
$ 312,609 126 766,799 349,479 (565,801) 863,212
========== ========== ========== ========== ========== ==========
</TABLE>
<PAGE>
<TABLE>
JONES LANG LASALLE INCORPORATED
CONDENSED CONSOLIDATING BALANCE SHEET
As of December 31, 1999
($ in thousands)
<CAPTION>
Jones Lang
LaSalle Consolidated
Incorporated Jones Lang Jones Lang
(Parent and LaSalle Guarantor Non-Guarantor LaSalle
Guarantor) Finance B.V. Subsidiaries Subsidiaries Eliminations Incorporated
------------ ----------- ------------ ------------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
------
Cash and
cash equivalents . . . $ (615) -- 1,027 22,896 -- 23,308
Trade receivables,
net of allowances. . . 2,070 -- 128,599 139,924 -- 270,593
Other current assets . . 23,379 -- 15,223 16,179 -- 54,781
---------- ---------- ---------- ---------- ---------- ----------
Total current
assets . . . . . . 24,834 -- 144,849 178,999 -- 348,682
Property and equipment,
at cost, less accumu-
lated depreciation. . . 749 -- 48,491 27,230 -- 76,470
Intangibles resulting
from business acquisi-
tions and JLW merger,
net of accumulated
amortization. . . . . . -- -- 287,848 79,367 -- 367,215
Other assets, net. . . . 3,010 -- 38,147 91,276 -- 132,433
Investments in
subsidiaries. . . . . . 357,593 -- 348,702 -- (706,295) --
---------- ---------- ---------- ---------- ---------- ----------
$ 386,186 -- 868,037 376,872 (706,295) 924,800
========== ========== ========== ========== ========== ==========
<PAGE>
JONES LANG LASALLE INCORPORATED
CONDENSED CONSOLIDATING BALANCE SHEET - CONTINUED
As of December 31, 1999
($ in thousands)
Jones Lang
LaSalle Consolidated
Incorporated Jones Lang Jones Lang
(Parent and LaSalle Guarantor Non-Guarantor LaSalle
Guarantor) Finance B.V. Subsidiaries Subsidiaries Eliminations Incorporated
------------ ----------- ------------ ------------- ------------ ------------
LIABILITIES AND
STOCKHOLDERS' EQUITY
--------------------
Accounts payable and
accrued liabilities. . $ (4,847) -- 30,516 62,588 -- 88,257
Short-term borrowings. . 156,471 -- 959 5,213 -- 162,643
Other current
liabilities. . . . . . (250,272) -- 485,978 (66,487) -- 169,219
---------- ---------- ---------- ---------- ---------- ----------
Total current
liabilities. . . . (98,648) -- 517,453 1,314 -- 420,119
Long-term liabilities:
Credit facilities. . . 159,743 -- -- -- -- 159,743
Other. . . . . . . . . 1,155 -- (7,009) 26,267 -- 20,413
---------- ---------- ---------- ---------- ---------- ----------
Total liabilities. . 62,250 -- 510,444 27,581 -- 600,275
Commitments and
contingencies
Minority interest in
consolidated
subsidiaries. . . . . . -- -- -- 589 -- 589
Stockholders' equity . . 323,936 -- 357,593 348,702 (706,295) 323,936
---------- ---------- ---------- ---------- ---------- ----------
$ 386,186 -- 868,037 376,872 (706,295) 924,800
========== ========== ========== ========== ========== ==========
</TABLE>
<PAGE>
<TABLE>
JONES LANG LASALLE INCORPORATED
CONDENSED CONSOLIDATING STATEMENT OF EARNINGS
For the Three Months Ended September 30, 2000
($ in thousands)
<CAPTION>
Jones Lang
LaSalle Consolidated
Incorporated Jones Lang Jones Lang
(Parent and LaSalle Guarantor Non-Guarantor LaSalle
Guarantor) Finance B.V. Subsidiaries Subsidiaries Eliminations Incorporated
------------ ----------- ------------ ------------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Revenue. . . . . . . . . $ -- -- 104,483 120,124 -- 224,607
Equity earnings (loss)
from subsidiaries . . . 15,078 -- 12,335 56 (27,469) --
---------- ---------- ---------- ---------- ---------- ----------
Total revenue. . . . 15,078 -- 116,818 120,180 (27,469) 224,607
Operating expenses
before merger related
non-recurring charges . 4,672 1 95,360 96,004 -- 196,037
Merger related non-
recurring charges . . . 18,191 -- (5) 5 -- 18,191
---------- ---------- ---------- ---------- ---------- ----------
Operating income
(loss) . . . . . . (7,785) (1) 21,463 24,171 (27,469) 10,379
Interest expense,
net of interest
income. . . . . . . . . 2,796 (79) 5,858 (349) -- 8,226
---------- ---------- ---------- ---------- ---------- ----------
Earnings (loss)
before provision
(benefit) for
income taxes
and minority
interest . . . . . (10,581) 78 15,605 24,520 (27,469) 2,153
Net provision for
income taxes. . . . . . (5,246) 22 527 12,125 -- 7,428
Minority interests
in earnings of
subsidiaries. . . . . . -- -- -- 60 -- 60
---------- ---------- ---------- ---------- ---------- ----------
Net earnings (loss). . . $ (5,335) 56 15,078 12,335 (27,469) (5,335)
========== ========== ========== ========== ========== ==========
</TABLE>
<PAGE>
<TABLE>
JONES LANG LASALLE INCORPORATED
CONDENSED CONSOLIDATING STATEMENT OF EARNINGS
For the Nine Months Ended September 30, 2000
($ in thousands)
<CAPTION>
Jones Lang
LaSalle Consolidated
Incorporated Jones Lang Jones Lang
(Parent and LaSalle Guarantor Non-Guarantor LaSalle
Guarantor) Finance B.V. Subsidiaries Subsidiaries Eliminations Incorporated
------------ ----------- ------------ ------------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Revenue. . . . . . . . . $ -- -- 290,194 347,076 -- 637,270
Equity earnings (loss)
from subsidiaries . . . 21,308 -- 24,855 56 (46,219) --
---------- ---------- ---------- ---------- ---------- ----------
Total revenue. . . . 21,308 -- 315,049 347,132 (46,219) 637,270
Operating expenses
before merger related
non-recurring charges . 10,904 1 281,239 303,124 -- 595,268
Merger related non-
recurring charges . . . 55,039 -- 240 103 -- 55,382
---------- ---------- ---------- ---------- ---------- ----------
Operating income
(loss) . . . . . . (44,635) (1) 33,570 43,905 (46,219) (13,380)
Interest expense,
net of interest
income. . . . . . . . . 7,989 (79) 14,014 (359) -- 21,565
---------- ---------- ---------- ---------- ---------- ----------
Earnings (loss)
before provision
(benefit) for
income taxes and
minority
interest . . . . . (52,624) 78 19,556 44,264 (46,219) (34,945)
Net provision (benefit)
for income taxes. . . . (10,824) 22 (1,752) 19,349 -- 6,795
Minority interests
in earnings of
subsidiaries. . . . . . -- -- -- 60 -- 60
---------- ---------- ---------- ---------- ---------- ----------
Net earnings (loss). . . $ (41,800) 56 21,308 24,855 (46,219) (41,800)
========== ========== ========== ========== ========== ==========
</TABLE>
<PAGE>
<TABLE>
JONES LANG LASALLE INCORPORATED
CONDENSED CONSOLIDATING STATEMENT OF EARNINGS
For the Three Months Ended September 30, 1999
($ in thousands)
<CAPTION>
Jones Lang
LaSalle Consolidated
Incorporated Jones Lang Jones Lang
(Parent and LaSalle Guarantor Non-Guarantor LaSalle
Guarantor) Finance B.V. Subsidiaries Subsidiaries Eliminations Incorporated
------------ ----------- ------------ ------------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Revenue. . . . . . . . . $ -- -- 82,950 111,222 -- 194,172
Equity earnings (loss)
from subsidiaries . . . (11,995) -- 16,426 -- (4,431) --
---------- ---------- ---------- ---------- ---------- ----------
Total revenue. . . . (11,995) -- 99,376 111,222 (4,431) 194,172
Operating expenses
before merger related
non-recurring charges . 2,079 -- 98,239 81,104 -- 181,422
Merger related non-
recurring charges . . . 1,785 -- 21,742 2,215 -- 25,742
---------- ---------- ---------- ---------- ---------- ----------
Operating income
(loss) . . . . . . (15,859) -- (20,605) 27,903 (4,431) (12,992)
Interest expense,
net of interest
income. . . . . . . . . 1,650 -- 3,260 57 -- 4,967
---------- ---------- ---------- ---------- ---------- ----------
Earnings (loss)
before provision
(benefit) for
income taxes . . . (17,509) -- (23,865) 27,846 (4,431) (17,959)
Net provision (benefit)
for income taxes. . . . (572) -- (11,870) 11,420 -- (1,022)
---------- ---------- ---------- ---------- ---------- ----------
Net earnings (loss). . . $ (16,937) -- (11,995) 16,426 (4,431) (16,937)
========== ========== ========== ========== ========== ==========
</TABLE>
<PAGE>
<TABLE>
JONES LANG LASALLE INCORPORATED
CONDENSED CONSOLIDATING STATEMENT OF EARNINGS
For the Nine Months Ended September 30, 1999
($ in thousands)
<CAPTION>
Jones Lang
LaSalle Consolidated
Incorporated Jones Lang Jones Lang
(Parent and LaSalle Guarantor Non-Guarantor LaSalle
Guarantor) Finance B.V. Subsidiaries Subsidiaries Eliminations Incorporated
------------ ----------- ------------ ------------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Revenue. . . . . . . . . $ -- -- 214,733 260,004 -- 474,737
Equity earnings (loss)
from subsidiaries . . . (22,359) -- 24,833 -- (2,474) --
---------- ---------- ---------- ---------- ---------- ----------
Total revenue. . . . (22,359) -- 239,566 260,004 (2,474) 474,737
Operating expenses
before merger related
non-recurring charges . 8,557 -- 254,411 214,184 -- 477,152
Merger related non-
recurring charges . . . 82,383 -- 28,359 4,630 -- 115,372
---------- ---------- ---------- ---------- ---------- ----------
Operating income
(loss) . . . . . . (113,299) -- (43,204) 41,190 (2,474) (117,787)
Interest expense,
net of interest
income. . . . . . . . . 1,829 -- 10,579 (96) -- 12,312
---------- ---------- ---------- ---------- ---------- ----------
Earnings (loss)
before provision
(benefit) for
income taxes . . . (115,128) -- (53,783) 41,286 (2,474) (130,099)
Net provision (benefit)
for income taxes. . . . (5,072) -- (31,424) 16,453 -- (20,043)
---------- ---------- ---------- ---------- ---------- ----------
Net earnings (loss). . . $ (110,056) -- (22,359) 24,833 (2,474) (110,056)
========== ========== ========== ========== ========== ==========
</TABLE>
<PAGE>
<TABLE>
JONES LANG LASALLE INCORPORATED
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the Nine Months Ended September 30, 2000
($ in thousands)
<CAPTION>
Jones Lang
LaSalle Consolidated
Incorporated Jones Lang Jones Lang
(Parent and LaSalle Guarantor Non-Guarantor LaSalle
Guarantor) Finance B.V. Subsidiaries Subsidiaries Incorporated
------------ ----------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C>
Cash flows provided by
operating activities . . . . . . . . . . . $ 9,863 3,788 6,285 15,543 35,479
Cash flows provided by (used in)
investing activities:
Net capital additions -
property and equipment . . . . . . . . . (1,259) -- (16,214) (13,333) (30,806)
Cash balances assumed in Jones Lang
Wootton merger, net of cash paid
and transaction cost . . . . . . . . . . -- -- -- -- --
Other acquisitions and investments, net
of cash acquired and transaction costs . -- -- (12,410) (638) (13,048)
Subsidiary activity. . . . . . . . . . . . 309,699 (302,465) 9,410 (16,644) --
Investments in real estate ventures. . . . -- -- 909 11,234 12,143
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
investing activities . . . . . . . . 308,440 (302,465) (18,305) (19,381) (31,711)
Cash flows provided by (used in)
financing activities:
Net borrowings under credit facility . . . (316,214) 146,493 8,447 (1,326) (162,600)
Net proceeds from issuance of the Euro
Notes. . . . . . . . . . . . . . . . . . (2,856) 152,310 -- -- 149,454
Common stock issued under stock option
plan and stock purchase programs . . . . 3,537 -- -- -- 3,537
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
financing activities . . . . . . . . (315,533) 298,803 8,447 (1,326) (9,609)
---------- ---------- ---------- ---------- ----------
Net increase (decrease) in cash
and cash equivalents . . . . . . . . . . . 2,770 126 (3,573) (5,164) (5,841)
Cash and cash equivalents,
beginning of period. . . . . . . . . . . . (615) -- 1,027 22,896 23,308
---------- ---------- ---------- ---------- ----------
Cash and cash equivalents, end of period . . $ 2,155 126 (2,546) 17,732 17,467
========== ========== ========== ========== ==========
</TABLE>
<PAGE>
<TABLE>
JONES LANG LASALLE INCORPORATED
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the Nine Months Ended September 30, 1999
($ in thousands)
<CAPTION>
Jones Lang
LaSalle Consolidated
Incorporated Jones Lang Jones Lang
(Parent and LaSalle Guarantor Non-Guarantor LaSalle
Guarantor) Finance B.V. Subsidiaries Subsidiaries Incorporated
------------ ----------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C>
Cash flows provided by (used in)
operating activities. . . . . . . . . . . . $ (14,483) -- (88,533) 38,088 (64,928)
Cash flows provided by (used in)
investing activities:
Net capital additions -
property and equipment . . . . . . . . . (34) -- (22,261) (1,346) (23,641)
Cash balances assumed in Jones Lang
Wootton merger, net of cash paid
and transaction cost . . . . . . . . . . -- -- (8,297) (29,078) (37,375)
Other acquisitions and investments, net
of cash acquired and transaction costs . -- -- (1,000) (2,003) (3,003)
Subsidiary activity. . . . . . . . . . . . (113,282) -- 114,856 (1,574) --
Investments in real estate ventures. . . . -- -- 11,448 4,644 16,092
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
investing activities . . . . . . . . (113,316) -- 94,746 (29,357) (47,927)
Cash flows provided by (used in)
financing activities:
Net borrowings under credit facility . . . 121,537 -- (6,658) (498) 114,381
Common stock issued under stock option
plan and stock purchase programs . . . . 3,126 -- -- -- 3,126
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
financing activities . . . . . . . . 124,663 -- (6,658) (498) 117,507
---------- ---------- ---------- ---------- ----------
Net increase (decrease) in cash
and cash equivalents . . . . . . . . . . . (3,136) -- (445) 8,233 4,652
Cash and cash equivalents,
beginning of period. . . . . . . . . . . . 1,703 -- 2,160 13,078 16,941
---------- ---------- ---------- ---------- ----------
Cash and cash equivalents, end of period . . $ (1,433) -- 1,715 21,311 21,593
========== ========== ========== ========== ==========
</TABLE>
