News Release | ||||||||||||||
Summary Financial Results ($ in millions, except per share data, “LC” = local currency) | Three Months Ended March 31, | ||||||||||||||||
2023 | 2022 | % Change in USD | % Change in LC | ||||||||||||||
Revenue | $ | 4,715.5 | $ | 4,801.4 | (2) | % | 1 | % | |||||||||
Fee revenue1 | 1,584.0 | 1,900.5 | (17) | (15) | |||||||||||||
Net (loss) income attributable to common shareholders | $ | (9.2) | $ | 145.6 | (106) | % | (111) | % | |||||||||
Adjusted net income attributable to common shareholders1 | 31.3 | 176.8 | (82) | (85) | |||||||||||||
Diluted (loss) earnings per share | $ | (0.19) | $ | 2.86 | (107) | % | (111) | % | |||||||||
Adjusted diluted earnings per share1 | 0.65 | 3.47 | (81) | (84) | |||||||||||||
Adjusted EBITDA1 | $ | 109.0 | $ | 273.6 | (60) | % | (61) | % | |||||||||
Free Cash Flow5 | $ | (765.6) | $ | (763.0) | — | % | n/a | ||||||||||
Consolidated ($ in millions, “LC” = local currency) | Three Months Ended March 31, | % Change in USD | % Change in LC | ||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Markets Advisory | $ | 906.4 | $ | 999.5 | (9) | % | (7) | % | |||||||||||||||
Capital Markets | 357.1 | 600.6 | (41) | (39) | |||||||||||||||||||
Work Dynamics | 3,276.2 | 3,033.6 | 8 | 11 | |||||||||||||||||||
JLL Technologies | 61.4 | 49.4 | 24 | 25 | |||||||||||||||||||
LaSalle | 114.4 | 118.3 | (3) | 1 | |||||||||||||||||||
Total revenue | $ | 4,715.5 | $ | 4,801.4 | (2) | % | 1 | % | |||||||||||||||
Gross contract costs1 | (3,133.3) | (2,904.5) | 8 | 11 | |||||||||||||||||||
Net non-cash MSR and mortgage banking derivative activity | 1.8 | 3.6 | 50 | 51 | |||||||||||||||||||
Total fee revenue1 | $ | 1,584.0 | $ | 1,900.5 | (17) | % | (15) | % | |||||||||||||||
Markets Advisory | 627.3 | 741.2 | (15) | (14) | |||||||||||||||||||
Capital Markets | 349.6 | 591.5 | (41) | (39) | |||||||||||||||||||
Work Dynamics | 442.0 | 410.5 | 8 | 11 | |||||||||||||||||||
JLL Technologies | 57.8 | 45.3 | 28 | 29 | |||||||||||||||||||
LaSalle | 107.3 | 112.0 | (4) | — | |||||||||||||||||||
Operating income | $ | 17.8 | $ | 175.7 | (90) | % | (93) | % | |||||||||||||||
Equity (losses) earnings | $ | (2.6) | $ | 18.5 | (114) | % | (115) | % | |||||||||||||||
Adjusted EBITDA1 | $ | 109.0 | $ | 273.6 | (60) | % | (61) | % | |||||||||||||||
Net (loss) income margin attributable to common shareholders (USD basis) | (0.2) | % | 3.0 | % | (320) bps | n/a | |||||||||||||||||
Adjusted EBITDA margin (local currency basis) | 6.6 | % | 14.4 | % | (750) bps | (780) bps | |||||||||||||||||
Adjusted EBITDA margin (USD basis) | 6.9 | % | |||||||||||||||||||||
n.m. - not meaningful as represented by a percentage change of greater than 1,000%, favorably or unfavorably. | |||||||||||||||||||||||
Note: For discussion and reconciliation of non-GAAP financial measures, see the Notes following the Financial Statements in this news release. Percentage variances in the Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted. |
March 31, 2023 | December 31, 2022 | March 31, 2022 | |||||||||||||||
Total Net Debt (in millions) | $ | 2,099.3 | $ | 1,244.0 | $ | 1,331.2 | |||||||||||
Net Leverage Ratio | 1.9x | 1.0x | 0.8x | ||||||||||||||
Corporate Liquidity (in billions) | $ | 1.7 | $ | 2.6 | $ | 2.2 |
Markets Advisory ($ in millions, “LC” = local currency) | Three Months Ended March 31, | % Change in USD | % Change in LC | ||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Revenue | $ | 906.4 | $ | 999.5 | (9) | % | (7) | % | |||||||||||||||
Gross contract costs1 | (279.1) | (258.3) | 8 | 12 | |||||||||||||||||||
Fee revenue1 | $ | 627.3 | $ | 741.2 | (15) | % | (14) | % | |||||||||||||||
Leasing | 482.5 | 596.9 | (19) | (18) | |||||||||||||||||||
Property Management | 127.1 | 118.6 | 7 | 12 | |||||||||||||||||||
Advisory, Consulting and Other | 17.7 | 25.7 | (31) | (27) | |||||||||||||||||||
Segment operating income | $ | 55.6 | $ | 91.4 | (39) | % | (40) | % | |||||||||||||||
Adjusted EBITDA1 | $ | 71.6 | $ | 111.2 | (36) | % | (36) | % | |||||||||||||||
Adjusted EBITDA margin (local currency basis) | 11.2 | % | 15.0 | % | (360) bps | (380) bps | |||||||||||||||||
Adjusted EBITDA margin (USD basis) | 11.4 | % | |||||||||||||||||||||
Note: For discussion and reconciliation of non-GAAP financial measures, see the Notes following the Financial Statements in this news release. Percentage variances in the Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted. |
Capital Markets ($ in millions, “LC” = local currency) | Three Months Ended March 31, | % Change in USD | % Change in LC | ||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Revenue | $ | 357.1 | $ | 600.6 | (41) | % | (39) | % | |||||||||||||||
Gross contract costs1 | (9.3) | (12.7) | (27) | (22) | |||||||||||||||||||
Net non-cash MSR and mortgage banking derivative activity | 1.8 | 3.6 | 50 | 51 | |||||||||||||||||||
Fee revenue1 | $ | 349.6 | $ | 591.5 | (41) | % | (39) | % | |||||||||||||||
Investment Sales, Debt/Equity Advisory and Other | 235.2 | 468.5 | (50) | (48) | |||||||||||||||||||
Valuation Advisory | 77.0 | 83.1 | (7) | (3) | |||||||||||||||||||
Loan Servicing | 37.4 | 39.9 | (6) | (6) | |||||||||||||||||||
Segment operating (loss) income | $ | (8.1) | $ | 98.2 | (108) | % | (109) | % | |||||||||||||||
Adjusted EBITDA1 | $ | 10.7 | $ | 118.2 | (91) | % | (91) | % | |||||||||||||||
Adjusted EBITDA margin (local currency basis) | 2.9 | % | 20.0 | % | (1690) bps | (1710) bps | |||||||||||||||||
Adjusted EBITDA margin (USD basis) | 3.1 | % | |||||||||||||||||||||
Note: For discussion and reconciliation of non-GAAP financial measures, see the Notes following the Financial Statements in this news release. Percentage variances in the Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted. |
Work Dynamics ($ in millions, “LC” = local currency) | Three Months Ended March 31, | % Change in USD | % Change in LC | ||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Revenue | $ | 3,276.2 | $ | 3,033.6 | 8 | % | 11 | % | |||||||||||||||
Gross contract costs1 | (2,834.2) | (2,623.1) | 8 | 11 | |||||||||||||||||||
Fee revenue1 | $ | 442.0 | $ | 410.5 | 8 | % | 11 | % | |||||||||||||||
Workplace Management | 183.2 | 182.0 | 1 | 3 | |||||||||||||||||||
Project Management | 210.9 | 175.7 | 20 | 24 | |||||||||||||||||||
Portfolio Services and Other | 47.9 | 52.8 | (9) | (7) | |||||||||||||||||||
Segment operating income | $ | 6.2 | $ | 18.4 | (66) | % | (83) | % | |||||||||||||||
Adjusted EBITDA1 | $ | 25.7 | $ | 35.2 | (27) | % | (33) | % | |||||||||||||||
Adjusted EBITDA margin (local currency basis) | 5.1 | % | 8.6 | % | (280) bps | (350) bps | |||||||||||||||||
Adjusted EBITDA margin (USD basis) | 5.8 | % | |||||||||||||||||||||
Note: For discussion and reconciliation of non-GAAP financial measures, see the Notes following the Financial Statements in this news release. Percentage variances in the Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted. |
JLL Technologies ($ in millions, “LC” = local currency) | Three Months Ended March 31, | % Change in USD | % Change in LC | ||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Revenue | $ | 61.4 | $ | 49.4 | 24 | % | 25 | % | |||||||||||||||
Gross contract costs1 | (3.6) | (4.1) | (12) | (13) | |||||||||||||||||||
Fee revenue1 | $ | 57.8 | $ | 45.3 | 28 | % | 29 | % | |||||||||||||||
Segment operating loss(a) | $ | (22.1) | $ | (34.9) | 37 | % | 35 | % | |||||||||||||||
Equity earnings | $ | 4.9 | $ | 18.8 | (74) | % | (74) | % | |||||||||||||||
Adjusted EBITDA1 | $ | (13.3) | $ | (12.3) | (8) | % | (12) | % | |||||||||||||||
Adjusted EBITDA margin (local currency basis) | (23.7) | % | (27.2) | % | 420 bps | 350 bps | |||||||||||||||||
Adjusted EBITDA margin (USD basis) | (23.0) | % | |||||||||||||||||||||
Note: For discussion and reconciliation of non-GAAP financial measures, see the Notes following the Financial Statements in this news release. Percentage variances in the Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted. | |||||||||||||||||||||||
(a) Included in Segment operating loss is carried interest expense of $0.7 million and $6.2 million for the first quarter of 2023 and 2022, respectively, related to the segment's equity earnings. |
LaSalle ($ in millions, “LC” = local currency) | Three Months Ended March 31, | % Change in USD | % Change in LC | ||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Revenue | $ | 114.4 | $ | 118.3 | (3) | % | 1 | % | |||||||||||||||
Gross contract costs1 | (7.1) | (6.3) | 13 | 13 | |||||||||||||||||||
Fee revenue1 | $ | 107.3 | $ | 112.0 | (4) | % | — | % | |||||||||||||||
Advisory fees | 94.7 | 90.7 | 4 | 9 | |||||||||||||||||||
Transaction fees and other | 9.1 | 17.1 | (47) | (44) | |||||||||||||||||||
Incentive fees | 3.5 | 4.2 | (17) | (2) | |||||||||||||||||||
Segment operating income | $ | 21.9 | $ | 22.1 | (1) | % | 2 | % | |||||||||||||||
Equity losses | $ | (8.8) | $ | (1.9) | (363) | % | (358) | % | |||||||||||||||
Adjusted EBITDA1 | $ | 14.3 | $ | 21.3 | (33) | % | (30) | % | |||||||||||||||
Adjusted EBITDA margin (local currency basis) | 13.3 | % | 19.0 | % | (570) bps | (570) bps | |||||||||||||||||
Adjusted EBITDA margin (USD basis) | 13.3 | % | |||||||||||||||||||||
Note: For discussion and reconciliation of non-GAAP financial measures, see the Notes following the Financial Statements in this news release. Percentage variances in the Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted. |
Connect with us |
Live Webcast | Conference Call | ||||||||||
Management will offer a live webcast for shareholders, analysts and investment professionals on Thursday, May 4, 2023, at 9:00 a.m. Eastern. Following the live broadcast, an audio replay will be available. The link to the live webcast and audio replay can be accessed at the Investor Relations website: ir.jll.com. | The conference call can be accessed live over the phone by dialing (888) 660-6392; the conference ID number is 5398158. Listeners are asked to please dial in 10 minutes prior to the call start time and provide the conference ID number to be connected. | ||||||||||
Supplemental Information | Contact | ||||||||||
Supplemental information regarding the first quarter 2023 earnings call has been posted to the Investor Relations section of JLL's website: ir.jll.com. | If you have any questions, please contact Scott Einberger, Investor Relations Officer. | ||||||||||
Phone: | +1 312 252 8943 | ||||||||||
Email: | JLLInvestorRelations@am.jll.com | ||||||||||
JONES LANG LASALLE INCORPORATED | |||||||||||
Consolidated Statements of Operations (Unaudited) | |||||||||||
Three Months Ended March 31, | |||||||||||
(in millions, except share and per share data) | 2023 | 2022 | |||||||||
Revenue | $ | 4,715.5 | $ | 4,801.4 | |||||||
Operating expenses: | |||||||||||
Compensation and benefits | $ | 2,253.0 | $ | 2,410.8 | |||||||
Operating, administrative and other | 2,351.5 | 2,141.0 | |||||||||
Depreciation and amortization | 57.5 | 54.4 | |||||||||
Restructuring and acquisition charges2 | 35.7 | 19.5 | |||||||||
Total operating expenses | $ | 4,697.7 | $ | 4,625.7 | |||||||
Operating income | $ | 17.8 | $ | 175.7 | |||||||
Interest expense, net of interest income | 26.3 | 10.2 | |||||||||
Equity (losses) earnings | (2.6) | 18.5 | |||||||||
Other income | 0.1 | 0.2 | |||||||||
(Loss) income before income taxes and noncontrolling interest | (11.0) | 184.2 | |||||||||
Income tax (benefit) provision | (2.3) | 40.3 | |||||||||
Net (loss) income | (8.7) | 143.9 | |||||||||
Net income (loss) attributable to noncontrolling interest | 0.5 | (1.7) | |||||||||
Net (loss) income attributable to common shareholders | $ | (9.2) | $ | 145.6 | |||||||
Basic (loss) earnings per common share | $ | (0.19) | $ | 2.92 | |||||||
Basic weighted average shares outstanding (in 000's) | 47,555 | 49,781 | |||||||||
Diluted (loss) earnings per common share | $ | (0.19) | $ | 2.86 | |||||||
Diluted weighted average shares outstanding (in 000's) | 47,555 | 50,957 | |||||||||
Please reference accompanying financial statement notes. |
JONES LANG LASALLE INCORPORATED | |||||||||||
Selected Segment Financial Data (Unaudited) | |||||||||||
Three Months Ended March 31, | |||||||||||
(in millions) | 2023 | 2022 | |||||||||
MARKETS ADVISORY | |||||||||||
Revenue | $ | 906.4 | $ | 999.5 | |||||||
Gross contract costs1 | (279.1) | (258.3) | |||||||||
Fee revenue1 | $ | 627.3 | $ | 741.2 | |||||||
Compensation and benefits, excluding gross contract costs | $ | 461.0 | $ | 540.8 | |||||||
Operating, administrative and other, excluding gross contract costs | 93.6 | 91.9 | |||||||||
Depreciation and amortization | 17.1 | 17.1 | |||||||||
Segment fee-based operating expenses | 571.7 | 649.8 | |||||||||
Gross contract costs1 | 279.1 | 258.3 | |||||||||
Segment operating expenses | $ | 850.8 | $ | 908.1 | |||||||
Segment operating income | $ | 55.6 | $ | 91.4 | |||||||
Add: | |||||||||||
Equity earnings | 0.3 | 0.5 | |||||||||
Depreciation and amortization(a) | 16.1 | 17.1 | |||||||||
Other income | 0.3 | 0.2 | |||||||||
Net (income) loss attributable to noncontrolling interest | (0.2) | 2.0 | |||||||||
Adjustments: | |||||||||||
Interest on employee loans, net of forgiveness | (0.5) | — | |||||||||
Adjusted EBITDA1 | $ | 71.6 | $ | 111.2 | |||||||
CAPITAL MARKETS | |||||||||||
Revenue | $ | 357.1 | $ | 600.6 | |||||||
Gross contract costs1 | (9.3) | (12.7) | |||||||||
Net non-cash MSR and mortgage banking derivative activity | 1.8 | 3.6 | |||||||||
Fee revenue1 | $ | 349.6 | $ | 591.5 | |||||||
Compensation and benefits, excluding gross contract costs | $ | 283.9 | $ | 418.2 | |||||||
Operating, administrative and other, excluding gross contract costs | 56.1 | 55.9 | |||||||||
Depreciation and amortization | 15.9 | 15.6 | |||||||||
Segment fee-based operating expenses | 355.9 | 489.7 | |||||||||
Gross contract costs1 | 9.3 | 12.7 | |||||||||
Segment operating expenses | $ | 365.2 | $ | 502.4 | |||||||
Segment operating (loss) income | $ | (8.1) | $ | 98.2 | |||||||
Add: | |||||||||||
Equity earnings | 0.6 | 0.8 | |||||||||
Depreciation and amortization | 15.9 | 15.6 | |||||||||
Other expense | (0.2) | — | |||||||||
Adjustments: | |||||||||||
Net non-cash MSR and mortgage banking derivative activity | 1.8 | 3.6 | |||||||||
Interest on employee loans, net of forgiveness | 0.7 | — | |||||||||
Adjusted EBITDA1 | $ | 10.7 | $ | 118.2 | |||||||
JONES LANG LASALLE INCORPORATED | |||||||||||
Selected Segment Financial Data (Unaudited) Continued | |||||||||||
Three Months Ended March 31, | |||||||||||
(in millions) | 2023 | 2022 | |||||||||
WORK DYNAMICS | |||||||||||
Revenue | $ | 3,276.2 | $ | 3,033.6 | |||||||
Gross contract costs1 | (2,834.2) | (2,623.1) | |||||||||
Fee revenue1 | $ | 442.0 | $ | 410.5 | |||||||
Compensation and benefits, excluding gross contract costs | $ | 305.0 | $ | 281.8 | |||||||
Operating, administrative and other, excluding gross contract costs | 111.5 | 93.8 | |||||||||
Depreciation and amortization | 19.3 | 16.5 | |||||||||
Segment fee-based operating expenses | 435.8 | 392.1 | |||||||||
Gross contract costs1 | 2,834.2 | 2,623.1 | |||||||||
Segment operating expenses | $ | 3,270.0 | $ | 3,015.2 | |||||||
Segment operating income | $ | 6.2 | $ | 18.4 | |||||||
Add: | |||||||||||
Equity earnings | 0.4 | 0.3 | |||||||||
Depreciation and amortization | 19.3 | 16.5 | |||||||||
Net income attributable to noncontrolling interest | (0.2) | — | |||||||||
Adjusted EBITDA1 | $ | 25.7 | $ | 35.2 | |||||||
JLL TECHNOLOGIES | |||||||||||
Revenue | $ | 61.4 | $ | 49.4 | |||||||
Gross contract costs1 | (3.6) | (4.1) | |||||||||
Fee revenue1 | $ | 57.8 | $ | 45.3 | |||||||
Compensation and benefits, excluding gross contract costs(a) | $ | 61.3 | $ | 62.2 | |||||||
Operating, administrative and other, excluding gross contract costs | 14.7 | 14.2 | |||||||||
Depreciation and amortization | 3.9 | 3.8 | |||||||||
Segment fee-based operating expenses | 79.9 | 80.2 | |||||||||
Gross contract costs1 | 3.6 | 4.1 | |||||||||
Segment operating expenses | $ | 83.5 | $ | 84.3 | |||||||
Segment operating loss | $ | (22.1) | $ | (34.9) | |||||||
Add: | |||||||||||
Equity earnings | 4.9 | 18.8 | |||||||||
Depreciation and amortization | 3.9 | 3.8 | |||||||||
Adjusted EBITDA1 | $ | (13.3) | $ | (12.3) | |||||||
(a) Included in Compensation and benefits expense for JLL Technologies is carried interest expense of $0.7 million and $6.2 million for the first quarter of 2023 and 2022, respectively, related to equity earnings of the segment. | |||||||||||
JONES LANG LASALLE INCORPORATED | |||||||||||
Selected Segment Financial Data (Unaudited) Continued | |||||||||||
Three Months Ended March 31, | |||||||||||
(in millions) | 2023 | 2022 | |||||||||
LASALLE | |||||||||||
Revenue | $ | 114.4 | $ | 118.3 | |||||||
Gross contract costs1 | (7.1) | (6.3) | |||||||||
Fee revenue1 | $ | 107.3 | $ | 112.0 | |||||||
Compensation and benefits, excluding gross contract costs | $ | 68.9 | $ | 74.8 | |||||||
Operating, administrative and other, excluding gross contract costs | 15.2 | 13.7 | |||||||||
Depreciation and amortization | 1.3 | 1.4 | |||||||||
Segment fee-based operating expenses | 85.4 | 89.9 | |||||||||
Gross contract costs1 | 7.1 | 6.3 | |||||||||
Segment operating expenses | $ | 92.5 | $ | 96.2 | |||||||
Segment operating income | $ | 21.9 | $ | 22.1 | |||||||
Add: | |||||||||||
Equity losses | (8.8) | (1.9) | |||||||||
Depreciation and amortization | 1.3 | 1.4 | |||||||||
Net income attributable to noncontrolling interest | (0.1) | (0.3) | |||||||||
Adjusted EBITDA1 | $ | 14.3 | $ | 21.3 | |||||||
JONES LANG LASALLE INCORPORATED | ||||||||||||||||||||||||||
Consolidated Statement of Cash Flows (Unaudited) | ||||||||||||||||||||||||||
Three Months Ended March 31, | Three Months Ended March 31, | |||||||||||||||||||||||||
(in millions) (unaudited) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Cash flows from operating activities: | Cash flows from investing activities: | |||||||||||||||||||||||||
Net (loss) income | $ | (8.7) | $ | 143.9 | Net capital additions – property and equipment | $ | (49.3) | $ | (46.6) | |||||||||||||||||
Reconciliation of net income to net cash used in operating activities: | Net investment asset activity (less than wholly-owned) | — | (12.0) | |||||||||||||||||||||||
Depreciation and amortization | 57.5 | 54.4 | Business acquisitions, net of cash acquired | — | (2.0) | |||||||||||||||||||||
Equity losses (earnings) | 2.6 | (18.5) | Capital contributions to investments | (32.8) | (36.5) | |||||||||||||||||||||
Net gain on dispositions | — | 0.4 | Distributions of capital from investments | 9.2 | 5.6 | |||||||||||||||||||||
Distributions of earnings from investments | 3.8 | 2.6 | Other, net | (1.1) | (2.5) | |||||||||||||||||||||
Provision for loss on receivables and other assets | 7.1 | 5.5 | Net cash used in investing activities | (74.0) | (94.0) | |||||||||||||||||||||
Amortization of stock-based compensation | 16.7 | 18.6 | Cash flows from financing activities: | |||||||||||||||||||||||
Net non-cash mortgage servicing rights and mortgage banking derivative activity | 1.8 | 3.6 | Proceeds from borrowings under credit facility | 2,668.0 | 2,348.0 | |||||||||||||||||||||
Accretion of interest and amortization of debt issuance costs | 1.0 | 1.3 | Repayments of borrowings under credit facility | (1,793.0) | (1,373.0) | |||||||||||||||||||||
Other, net | 0.9 | 0.6 | Net proceeds from short-term borrowings | (62.3) | (27.4) | |||||||||||||||||||||
Change in: | Payments of deferred business acquisition obligations and earn-outs | (13.6) | (6.0) | |||||||||||||||||||||||
Receivables | 158.5 | 76.2 | Repurchase of common stock | — | (150.0) | |||||||||||||||||||||
Reimbursable receivables and reimbursable payables | (181.6) | (89.4) | Other, net | (23.8) | 14.9 | |||||||||||||||||||||
Prepaid expenses and other assets | (59.9) | (58.7) | Net cash provided by financing activities | 775.3 | 806.5 | |||||||||||||||||||||
Deferred tax assets, net | (4.3) | 34.4 | Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | 4.5 | (6.7) | |||||||||||||||||||||
Accounts payable and accrued liabilities | (93.3) | (181.2) | Net change in cash, cash equivalents and restricted cash | $ | (10.5) | $ | (10.6) | |||||||||||||||||||
Accrued compensation | (618.4) | (710.1) | Cash, cash equivalents and restricted cash, beginning of the period | 746.0 | 841.6 | |||||||||||||||||||||
Net cash used in operating activities | $ | (716.3) | $ | (716.4) | Cash, cash equivalents and restricted cash, end of the period | $ | 735.5 | $ | 831.0 |
JONES LANG LASALLE INCORPORATED | ||||||||||||||||||||||||||||||||||||||
Consolidated Balance Sheets | ||||||||||||||||||||||||||||||||||||||
March 31, | December 31, | March 31, | December 31, | |||||||||||||||||||||||||||||||||||
(in millions, except share and per share data) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||
ASSETS | (Unaudited) | LIABILITIES AND EQUITY | (Unaudited) | |||||||||||||||||||||||||||||||||||
Current assets: | Current liabilities: | |||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 485.4 | $ | 519.3 | Accounts payable and accrued liabilities | $ | 1,110.5 | $ | 1,236.8 | |||||||||||||||||||||||||||||
Trade receivables, net of allowance | 1,976.9 | 2,148.8 | Reimbursable payables | 1,352.3 | 1,579.5 | |||||||||||||||||||||||||||||||||
Notes and other receivables | 481.3 | 469.5 | Accrued compensation and benefits | 1,121.6 | 1,749.8 | |||||||||||||||||||||||||||||||||
Reimbursable receivables | 1,961.4 | 2,005.7 | Short-term borrowings | 104.3 | 164.2 | |||||||||||||||||||||||||||||||||
Warehouse receivables | 881.6 | 463.2 | Short-term contract liability and deferred income | 205.5 | 216.5 | |||||||||||||||||||||||||||||||||
Short-term contract assets, net of allowance | 359.6 | 359.7 | Short-term acquisition-related obligations | 18.4 | 23.1 | |||||||||||||||||||||||||||||||||
Prepaid and other | 625.6 | 603.5 | Warehouse facilities | 813.6 | 455.3 | |||||||||||||||||||||||||||||||||
Total current assets | 6,771.8 | 6,569.7 | Short-term operating lease liability | 161.8 | 156.4 | |||||||||||||||||||||||||||||||||
Property and equipment, net of accumulated depreciation | 586.2 | 582.9 | Other | 377.2 | 330.5 | |||||||||||||||||||||||||||||||||
Operating lease right-of-use asset | 758.0 | 776.3 | Total current liabilities | 5,265.2 | 5,912.1 | |||||||||||||||||||||||||||||||||
Goodwill | 4,543.9 | 4,528.0 | Noncurrent liabilities: | |||||||||||||||||||||||||||||||||||
Identified intangibles, net of accumulated amortization | 833.1 | 858.5 | Credit facility, net of debt issuance costs | 2,089.7 | 1,213.8 | |||||||||||||||||||||||||||||||||
Investments | 896.0 | 873.8 | Long-term debt, net of debt issuance costs | 379.2 | 372.8 | |||||||||||||||||||||||||||||||||
Long-term receivables | 343.8 | 331.1 | Long-term deferred tax liabilities, net | 202.1 | 194.0 | |||||||||||||||||||||||||||||||||
Deferred tax assets, net | 391.9 | 379.6 | Deferred compensation | 508.4 | 492.4 | |||||||||||||||||||||||||||||||||
Deferred compensation plans | 551.3 | 517.9 | Long-term acquisition-related obligations | 67.5 | 76.3 | |||||||||||||||||||||||||||||||||
Other | 173.1 | 175.9 | Long-term operating lease liability | 766.2 | 775.8 | |||||||||||||||||||||||||||||||||
Total assets | $ | 15,849.1 | $ | 15,593.7 | Other | 408.5 | 407.0 | |||||||||||||||||||||||||||||||
Total liabilities | $ | 9,686.8 | $ | 9,444.2 | ||||||||||||||||||||||||||||||||||
Redeemable noncontrolling interest | $ | 7.1 | $ | 7.0 | ||||||||||||||||||||||||||||||||||
Company shareholders' equity | ||||||||||||||||||||||||||||||||||||||
Common stock | 0.5 | 0.5 | ||||||||||||||||||||||||||||||||||||
Additional paid-in capital | 1,981.3 | 2,022.6 | ||||||||||||||||||||||||||||||||||||
Retained earnings | 5,566.7 | 5,590.4 | ||||||||||||||||||||||||||||||||||||
Treasury stock | (883.5) | (934.6) | ||||||||||||||||||||||||||||||||||||
Shares held in trust | (9.8) | (9.8) | ||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive loss | (621.4) | (648.2) | ||||||||||||||||||||||||||||||||||||
Total company shareholders' equity | 6,033.8 | 6,020.9 | ||||||||||||||||||||||||||||||||||||
Noncontrolling interest | 121.4 | 121.6 | ||||||||||||||||||||||||||||||||||||
Total equity | 6,155.2 | 6,142.5 | ||||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 15,849.1 | $ | 15,593.7 | ||||||||||||||||||||||||||||||||||
Please reference accompanying financial statement notes. | ||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
(in millions) | 2023 | 2022 | |||||||||
Revenue | $ | 4,715.5 | $ | 4,801.4 | |||||||
Gross contract costs1 | (3,133.3) | (2,904.5) | |||||||||
Net non-cash MSR and mortgage banking derivative activity | 1.8 | 3.6 | |||||||||
Fee revenue | $ | 1,584.0 | $ | 1,900.5 | |||||||
Operating expenses | $ | 4,697.7 | $ | 4,625.7 | |||||||
Gross contract costs1 | (3,133.3) | (2,904.5) | |||||||||
Fee-based operating expenses | $ | 1,564.4 | $ | 1,721.2 | |||||||
Three Months Ended March 31, | |||||||||||
(in millions) | 2023 | 2022 | |||||||||
Net (loss) income attributable to common shareholders | $ | (9.2) | $ | 145.6 | |||||||
Add: | |||||||||||
Interest expense, net of interest income | 26.3 | 10.2 | |||||||||
Income tax (benefit) provision | (2.3) | 40.3 | |||||||||
Depreciation and amortization(a) | 56.5 | 54.4 | |||||||||
EBITDA | $ | 71.3 | $ | 250.5 | |||||||
Adjustments: | |||||||||||
Restructuring and acquisition charges2 | 35.7 | 19.5 | |||||||||
Net non-cash MSR and mortgage banking derivative activity | 1.8 | 3.6 | |||||||||
Interest on employee loans, net of forgiveness | 0.2 | — | |||||||||
Adjusted EBITDA | $ | 109.0 | $ | 273.6 | |||||||
Three Months Ended March 31, | |||||||||||
(In millions, except share and per share data) | 2023 | 2022 | |||||||||
Net (loss) income attributable to common shareholders | $ | (9.2) | $ | 145.6 | |||||||
Diluted shares (in thousands)(b) | 47,555 | 50,957 | |||||||||
Diluted (loss) earnings per share | $ | (0.19) | $ | 2.86 | |||||||
Net (loss) income attributable to common shareholders | $ | (9.2) | $ | 145.6 | |||||||
Adjustments: | |||||||||||
Restructuring and acquisition charges2 | 35.7 | 19.5 | |||||||||
Net non-cash MSR and mortgage banking derivative activity | 1.8 | 3.6 | |||||||||
Amortization of acquisition-related intangibles(a) | 16.5 | 16.8 | |||||||||
Interest on employee loans, net of forgiveness | 0.2 | — | |||||||||
Tax impact of adjusted items(c) | (13.7) | (8.7) | |||||||||
Adjusted net income attributable to common shareholders | $ | 31.3 | $ | 176.8 | |||||||
Diluted shares (in thousands) | 48,360 | 50,957 | |||||||||
Adjusted diluted earnings per share | $ | 0.65 | $ | 3.47 |
Three Months Ended March 31, | |||||||||||
(in millions) | 2023 | 2022 | |||||||||
Net cash used in operating activities | $ | (716.3) | $ | (716.4) | |||||||
Net capital additions - property and equipment | (49.3) | (46.6) | |||||||||
Free Cash Flow5 | $ | (765.6) | $ | (763.0) |
Three Months Ended March 31, | |||||||||||
($ in millions) | 2023 | % Change | |||||||||
Revenue: | |||||||||||
At current period exchange rates | $ | 4,715.5 | (2) | % | |||||||
Impact of change in exchange rates | 120.6 | n/a | |||||||||
At comparative period exchange rates | $ | 4,836.1 | 1 | % | |||||||
Fee revenue: | |||||||||||
At current period exchange rates | $ | 1,584.0 | (17) | % | |||||||
Impact of change in exchange rates | 40.8 | n/a | |||||||||
At comparative period exchange rates | $ | 1,624.8 | (15) | % | |||||||
Operating income: | |||||||||||
At current period exchange rates | $ | 17.8 | (90) | % | |||||||
Impact of change in exchange rates | (5.1) | n/a | |||||||||
At comparative period exchange rates | $ | 12.7 | (93) | % | |||||||
Adjusted EBITDA: | |||||||||||
At current period exchange rates | $ | 109.0 | (60) | % | |||||||
Impact of change in exchange rates | (2.5) | n/a | |||||||||
At comparative period exchange rates | $ | 106.5 | (61) | % |
Three Months Ended March 31, | |||||||||||
(in millions) | 2023 | 2022 | |||||||||
Severance and other employment-related charges | $ | 25.7 | $ | 3.3 | |||||||
Restructuring, pre-acquisition and post-acquisition charges | 10.0 | 16.9 | |||||||||
Fair value adjustments that resulted in a net decrease to earn-out liabilities from prior-period acquisition activity | — | (0.7) | |||||||||
Total restructuring and acquisition charges | $ | 35.7 | $ | 19.5 |
Three Months Ended March 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Markets Advisory | Capital Markets | Work Dynamics | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leasing | Property Mgmt | Advisory, Consulting and Other | Total Markets Advisory | Invt Sales, Debt/Equity Advisory and Other | Valuation Advisory | Loan Servicing | Total Capital Markets | Workplace Mgmt | Project Mgmt | Portfolio Services and Other | Total Work Dynamics | JLLT | LaSalle | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 487.0 | 400.2 | 19.2 | $ | 906.4 | $ | 240.6 | 79.1 | 37.4 | $ | 357.1 | $ | 2,497.2 | 676.3 | 102.7 | $ | 3,276.2 | $ | 61.4 | $ | 114.4 | $ | 4,715.5 | |||||||||||||||||||||||||||||||||||||||||||||||
Gross contract costs1 | (4.5) | (273.1) | (1.5) | (279.1) | (7.2) | (2.1) | — | (9.3) | (2,314.0) | (465.4) | (54.8) | (2,834.2) | (3.6) | (7.1) | (3,133.3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net non-cash MSR and mortgage banking derivative activity | — | — | — | — | 1.8 | — | — | 1.8 | — | — | — | — | — | — | 1.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fee revenue | $ | 482.5 | 127.1 | 17.7 | $ | 627.3 | $ | 235.2 | 77.0 | 37.4 | $ | 349.6 | $ | 183.2 | 210.9 | 47.9 | $ | 442.0 | $ | 57.8 | $ | 107.3 | $ | 1,584.0 |
Three Months Ended March 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Markets Advisory | Capital Markets | Work Dynamics | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leasing | Property Mgmt | Advisory, Consulting and Other | Total Markets Advisory | Invt Sales, Debt/Equity Advisory and Other | Valuation Advisory | Loan Servicing | Total Capital Markets | Workplace Mgmt | Project Mgmt | Portfolio Services and Other | Total Work Dynamics | JLLT | LaSalle | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 600.9 | 370.5 | 28.1 | $ | 999.5 | $ | 476.1 | 84.6 | 39.9 | $ | 600.6 | $ | 2,320.4 | 612.3 | 100.9 | $ | 3,033.6 | $ | 49.4 | $ | 118.3 | $ | 4,801.4 | |||||||||||||||||||||||||||||||||||||||||||||||
Gross contract costs1 | (4.0) | (251.9) | (2.4) | (258.3) | (11.2) | (1.5) | — | (12.7) | (2,138.4) | (436.6) | (48.1) | (2,623.1) | (4.1) | (6.3) | (2,904.5) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net non-cash MSR and mortgage banking derivative activity | — | — | — | — | 3.6 | — | — | 3.6 | — | — | — | — | — | — | 3.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fee revenue | $ | 596.9 | 118.6 | 25.7 | $ | 741.2 | $ | 468.5 | 83.1 | 39.9 | $ | 591.5 | $ | 182.0 | 175.7 | 52.8 | $ | 410.5 | $ | 45.3 | $ | 112.0 | $ | 1,900.5 |