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JONES LANG LASALLE REPORTS
1999 RESULTS Chicago and London, February 9, 2000 – Jones Lang LaSalle Incorporated (NYSE: JLL) today announced adjusted pro forma net earnings of $32.3 million, or $1.07 per diluted share, for the calendar year ended December 31, 1999, on revenues of $813.9 million. Adjusted pro forma EBITDA for the full year totaled $112.2 million. The full year adjusted pro forma net earnings per share exceeded consensus analyst estimates by $0.07. For the fourth quarter 1999, the Company reported adjusted net earnings of $45.9 million, or $1.51 per diluted share, on revenues of $280.7 million. Adjusted EBITDA for the fourth quarter 1999 totaled $92.5 million. The adjusted pro forma results include the operating results of the Jones Lang Wootton companies for the two months ended February 28, 1999, and exclude the non-recurring transition and integration costs and non-cash compensation expenses associated with the Jones Lang Wootton merger and the acquisition of COMPASS Management and Leasing and the U.S. retail businesses of Lend Lease Corporation Limited. The Company reported an actual net loss for the year of $94.8 million, or $4.20 per diluted share, compared with earnings of $20.5 million, or $1.25 per diluted share from the comparable prior year period. For the fourth quarter 1999, Jones Lang LaSalle generated net earnings of $15.2 million, or $0.63 per diluted share, compared with net earnings of $11.8 million, or $0.72 per diluted share for the 1998 fourth quarter. The 1999 full year and fourth quarter actual results include $101.6 and $19.2 million, respectively, of non-cash compensation expenses associated with the issuance of shares pursuant to the merger between LaSalle Partners and the Jones Lang Wootton companies. The results also include $49.8 million and $16.8 million, respectively, of non-recurring transition and integration costs associated with the Jones Lang Wootton merger and the acquisition of COMPASS Management and Leasing and the U.S. retail businesses of Lend Lease Corporation Limited. The fourth quarter and full year 1999 results include a pre-tax gain of approximately $7.5 million associated with the disposition of the Company's former construction subsidiary, which was sold in a leveraged buy-out in December 1996. As previously announced, U.S. GAAP accounting requirements, in relation to the terms of the sale, had not permitted the recognition of this gain in prior years. According to Stuart L. Scott, Chairman and Chief Executive Officer of Jones Lang LaSalle, management is extremely pleased with the fourth quarter results. “Our progress during the last six months of the year in addressing the performance initiatives outlined in the beginning of the third quarter of 1999, as well as our significant new business activity in the fourth quarter, together have created solid footing for a successful and improved 2000. “In January this year, we announced cost savings expectations from several initiatives we had implemented in the Americas' Owner & Occupier Services segment to improve operating performance and help capture approximately $20.0 million in cost efficiencies by 2001. This program began to show its substantial positive effect, primarily within the Americas' operations and its leasing and management business, in the fourth quarter of 1999. Through the implementation of these various initiatives, we expect to achieve savings of $15 million in 2000 and total run-rate savings of $20 million by 2001,” said Mr. Scott. He continued, “In addition to making progress on our cost-savings program in the fourth quarter, we also validated our merger and growth platform by gaining significant new business, expanding key client relationships, and completing several investment initiatives.” Highlights of Jones Lang LaSalle's segment activities during the fourth quarter 1999 include:
Highlights of Business
Segment Performance “Our management teams, particularly in the Americas' Owner & Occupier Services segment, demonstrated a commitment to improving results this quarter and establishing strong backlogs in their businesses going into 2000. We also have made a concerted effort to leverage our merger platform to add client value and expand business opportunities. Through these combined efforts, we believe we are on track to meet our management plan of approximately 30 percent growth in adjusted net earnings per share this year,” added Mr. Peacock. Owner & Occupier Services Jones Lang LaSalle's Owner & Occupier Services segments include the Company's property management, corporate property services, leasing, retail, tenant representation, investment banking and other transaction services in three regions. Beginning with the fourth quarter reporting period, Jones Lang LaSalle has consolidated the operations of its former Australasia and Asian segments into a single Asia Pacific segment, reflecting the unification of these regions as announced on December 21, 1999. Consistent with historical seasonal trends of increasing revenues and profitability in the fourth quarter of the year, the Americas region reported operating income of $51.3 million on revenues of $120.4 million for the quarter. For the full year 1999, the Americas region generated pro forma operating income of $24.8 million on total pro forma revenues of $296.8 million. The pro forma results are inclusive of the operating results of the Jones Lang Wootton companies for the two months ended February 28, 1999. The European region generated fourth quarter operating income of $17.7 million on total revenues of $89.6 million. For the full year ended December 31, 1999, the European region reported pro forma operating income of $28.5 million on total pro forma revenues of $290.5 million. The Asia Pacific region reported fourth quarter operating income of $4.4 million on total revenues of $39.4 million, bringing its year-to-date pro forma operating income to $4.9 million on total pro forma revenue of $129.3 million. Hotel Services Investment Management Jones Lang LaSalle (NYSE: JLL) is the world's leading real estate services and investment management firm, operating across more than 100 key markets on five continents. The company provides comprehensive and wide ranging integrated expertise, including property and facility management, transaction and investment management core services on a local, regional and global level to owners, occupiers and investors. LaSalle Investment Management, the company's investment management business, is the world's second largest and most diverse real estate investment management firm, with approximately $21.5 billion (£13.3 billion) of assets under management. Jones Lang LaSalle also is the industry leader in real estate management services, with a portfolio of approximately 700 million square feet (65 million square meters) of property under management worldwide. 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 LaSalle Partners' Annual Report on Form 10-K for the year ended December 31, 1998, under “Risk Factors,” “The Transactions,” “The Purchase Agreements,” “JLW Management's Discussion and Analysis of Financial Condition and Results of Operations of the JLW Companies,” and elsewhere in LaSalle Partners' Proxy Statement dated February 4, 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, 1999, June 30, 1999 and September 30, 1999, 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. ###
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