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Chicago and London, February 5, 2002 -- Jones Lang LaSalle Incorporated (NYSE: JLL), the leading global real estate services and investment management firm, today reported adjusted net income of $40.5 million, or an adjusted $1.31 per diluted share, for the fiscal year ended December 31, 2001, in line with First Call consensus estimates. Full-year revenues were $881.7 million, four percent below the prior year. The firm's adjusted results exclude $77.2 million of non-operational non-recurring charges incurred during the year. Comparable results for the full year 2000 included adjusted net income of $40.5 million, or an adjusted $1.31 per share, which excluded $85.8 million of non-cash compensation expense associated with the Jones Lang Wootton merger and a charge of $14.2 million related to the adoption of SAB 101. Adjusted EBITDA for 2001 was $137.0 million, a slight increase year on year. Full-year 2001 results reported under Generally Accepted Accounting Principles (GAAP) improved to a loss of $15.4 million, or $0.51 per share, versus a loss of $57.1 million, or $2.30 per share, for the full year of 2000. The non-operational non-recurring charges in 2001 are for the previously announced global business restructuring, realignment of the Asia Pacific business, provision against two insolvent insurers and e-commerce investment writedowns.
"We achieved our revised adjusted earnings per share target of $1.31 and matched our record 2000 performance in an unprecedented economic environment," said Chris Peacock, President and Chief Executive Officer of Jones Lang LaSalle. "This performance shows that our business model is flexible enough to perform well even in a very difficult and demanding year. We are also pleased to continue to strengthen our balance sheet by repaying $28 million of debt. We have exceeded our two-year debt repayment goal of $60 million by $40 million." Fourth Quarter
Results On a GAAP basis, the firm had a net loss of $2.9 million, or $0.10 per diluted share for the fourth quarter of 2001, compared to a GAAP loss of $1.8 million, or $0.07 per diluted share in the comparable period in 2000. The fourth quarter 2001 GAAP loss includes costs mentioned above for severance and professional fees associated with restructuring the business and some charges for e-commerce investment writedowns and realignment of the Asia Pacific region. Business Segment Fourth Quarter and Full-Year Performance Highlights Owner and Occupier Services
Investment Management During the fourth quarter of 2001, LaSalle Investment Management revenues were down slightly from the prior year, while operating income increased nearly $3.0 million as a result of reduced incentive compensation. Revenues for 2001 were $12 million lower and operating income of $21.7 million was down ten percent from 2000. 2002 Outlook "All of our segments experienced lower revenues for the year as difficult economic conditions translated into a significant slowdown in transaction activity," said Mr. Peacock. "While we expect the challenging economic conditions to continue well into 2002, we believe we have an unparalleled integrated global platform, the industry's best professionals and clear strategic focus on core competencies and technology leadership. This combination has led to a strong backlog of business for the year and further expansion of our client base with major global engagements with companies such as Microsoft and Rockwell Automation. Mr. Peacock said: "We are continuing our focus on containing discretionary costs following the successful implementation of our global re-structuring program but are investing appropriately in strategic business areas of the firm that offer the strongest future growth potential. As a result, our 2002 plan, although assuming flat revenues, anticipates that we will grow our comparable earnings per share by 7-10 percent year on year. Our earnings target does not take into account the impact of the new accounting standard relating to goodwill amortization (SFAS142), which could add as much as $0.25 per adjusted share to our 2002 results." 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 more than $22 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. Download Fourth 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, 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, 2001, June 30, 2001, and September 30, 2001, in Jones Lang LaSalle's Proxy Statement dated April 6, 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:
©2002, Jones Lang LaSalle IP, Inc. All rights reserved.
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