 
|
Chicago and London,
November 5, 2001 -- Jones Lang LaSalle Incorporated (NYSE: JLL),
the leading global real estate services and investment management firm,
today reported third quarter adjusted net income of $12.6 million, or
$ 0.41 per share, exceeding the First Call consensus estimate by $0.03
per share. Revenues for the third quarter were $216.6 million, off only
three percent from the previous year's period. The firm's adjusted results
exclude $24.5 million of non-recurring charges incurred during the quarter.
Comparable results for the third quarter of 2000 included adjusted net
income of $12.2 million, or $0.40 per share, which excluded $18.2 million
of non-cash compensation expense associated with the Jones Lang Wootton
merger.
Including the effect of these non-operational charges, third quarter results for 2001 reported under Generally Accepted Accounting Principles (GAAP) were a loss of $6.2 million, or $0.21 per share. On a GAAP basis, results for the third quarter of 2000 were a loss of $5.7 million, or $0.22 per share. In recognition of
the difficult economic environment, the company is implementing a program
that will even more closely align its business operations with anticipated
client needs in 2002. Jones Lang LaSalle expects the program, which
will be finalized by year-end, to produce annualized savings of at least
$45 million, and the company will take additional restructuring charges
of at least $40 million in the fourth quarter to cover associated severance
and other costs. Certain of the non-recurring charges in the third quarter
reflect the commencement of this program, particularly related to restructuring
the Asia Pacific business and exiting two small non-strategic businesses
in the United States. Other elements of the charges include the writedown
of E-commerce investments and costs associated with the bankruptcy of
two insurance providers. "In light of the recent profound shock to an already slowing global economy, we are pleased that our third quarter earnings were slightly above the mid-point of our projected range," said Stuart L. Scott, Chairman and Chief Executive Officer of Jones Lang LaSalle. "Due to uncertainty regarding the timing of a recovery from the current global economic environment, we have instituted an extensive review of our operating plans for the remainder of 2001 and for next year. We have a goal of reducing costs on an annualized basis by at least $45 million while continuing to remain focused on constantly improving client service levels." Mr. Scott continued: "With regard to our full year results, the revenue planned in the fourth quarter, coupled with aggressive expense controls, are sufficient to enable us to achieve our adjusted EPS target of $1.31, excluding one time charges. However, there is some risk to our ability to execute all this work in the quarter given the slowness we are experiencing in closing transactions in the current environment." Business Segment Performance Highlights Chris Peacock, President and Chief Operating Officer of Jones Lang LaSalle, said: "With the weakness of the global economy, we have actively managed costs in the face of the slowdown in revenues. More importantly, in these difficult times, our clients around the world continue to turn to us for assistance in managing their real estate expenses. In fact, we have had a record year in forging new alliances and key client relationships, which demonstrates the validity of our global platform and the expertise of our talented people." The following summary of business segment results compares the third quarter of 2001 to the same period of the previous year. The segment results, which exclude the non-recurring charges of $24.5 million discussed above, have been restated to reflect both the consolidation of the former Hotel Services segment into the regional Owner and Occupier Services segments and the implementation of SAB 101 for the year 2000. Owner and Occupier
Services
Investment Management
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, implementation services and investment management services on a local, regional and global level to owners, occupiers and investors. 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. 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 more than $23 billion of assets under management. Download Third Quarter 2001 Financials (.xls format) 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, 2000, in Jones Lang LaSalle's Proxy Statement dated April 6, 2001, in Jones Lang LaSalle's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2001 and June 30, 2001 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:
|
