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
(firmenpresse) - CHICAGO, IL -- (Marketwired) -- 02/03/16 -- 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.
"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.
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.
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.
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.
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.
Real Estate Services
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.
Real Estate Services
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.
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.
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.
Real Estate Services
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.
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.
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 (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 .
200 East Randolph Drive Chicago Illinois 60601 | 30 Warwick Street London W1B 5NH | 9 Raffles Place #39-00 Republic Plaza Singapore 048619
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.
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
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
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 regarding the fourth-quarter 2015 earnings call has been posted to the Investor Relations section of the company's website: .
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
An audio replay will be available for download or stream. Information and the link can be found on the company's website: .
If you have any questions, please contact JLL's Investor Relations department at: .
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.
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:
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:
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.
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
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Datum: 03.02.2016 - 12:30 Uhr
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