JLL Reports Record First-Quarter 2015 Adjusted Earnings per Share of $0.94

CHICAGO, IL--(Marketwired - Apr 27, 2015) - Jones Lang LaSalle Incorporated (NYSE: JLL) today reported adjusted earnings per share of $0.94, up from $0.38 in the prior year. First-quarter fee revenue totaled $1.0 billion, up 25 percent from the first quarter of 2014. All percentage variances are calculated on a local currency basis.

• Strong first quarter fee revenue growth across all service lines and geographic segments
  
  
• Margins expanded in all segments
  
  
• New wins and healthy pipelines continue to drive Corporate Solutions momentum
  
  
• LaSalle Investment Management raised $2.0 billion of equity commitments for the quarter and continued outstanding investment performance
  
  
• Dividend increased 8 percent to $0.27 per share
  
  

Summary Financial Results ($ in millions, except per share data)			Three Months Ended March 31,
			2015			2014
Revenue			$	1,204		$	1,037
Fee Revenue1			$	1,029		$	878
Adjusted Net Income2			$	43		$	17
U.S. GAAP Net Income2			$	42		$	16
Adjusted Earnings per Share2			$	0.94		$	0.38
Earnings per Share			$	0.92		$	0.35
Adjusted EBITDA3			$	90		$	52
	Adjusted EBITDA, Real Estate Services		$	62		$	35
	Adjusted EBITDA, LaSalle Investment Management		$	28		$	17
See Financial Statement Notes (1), (2) and (3) following the Financial Statements in this news release

CEO Comment:

"We completed an excellent first quarter, building on last year's momentum with strong revenue growth across all service lines and geographies, and margin expansion in all segments," said Colin Dyer, President and CEO of JLL. "Corporate Solutions continued to win new business and build healthy pipelines, while LaSalle Investment Management started the year with strong capital raising and investment activity," Dyer added.

Consolidated Revenue ($ in millions, "LC" = local currency)			Three Months Ended March 31,						% Change in USD		% Change in LC
			2015			2014
Real Estate Services ("RES")
Leasing			$	306.1		$	269.2		14%		17%
Capital Markets & Hotels				177.4			117.4		51%		64%
Property & Facility Management Fee Revenue1				259.8			247.2		5%		12%
	Property & Facility Management			372.7			344.8		8%		15%
Project & Development Services Fee Revenue1				101.2			87.4		16%		24%
	Project & Development Services			162.7			149.4		9%		22%
Advisory, Consulting and Other				98.9			92.8		7%		15%
	Total RES Fee Revenue1		$	943.4		$	814.0		16%		23%
	Total RES Revenue		$	1,117.8		$	973.6		15%		23%
LaSalle Investment Management ("LaSalle")
Advisory Fees			$	60.7		$	55.9		9%		17%
Transaction Fees & Other				6.1			4.6		33%		45%
Incentive Fees				18.9			3.3		n.m.		n.m.
	Total LaSalle Revenue		$	85.7		$	63.8		34%		45%
Total Firm Fee Revenue1			$	1,029.1		$	877.8		17%		25%
	Total Firm Revenue		$	1,203.5		$	1,037.4		16%		24%
n.m. - not meaningful

Consolidated Performance Highlights:

• Consolidated fee revenue for the first quarter was $1.0 billion, up 25 percent from 2014. Growth was broad-based, led by Capital Markets, up $60 million or 64 percent, and Leasing, up $37 million or 17 percent.
  
  
• Consolidated fee-based operating expenses, excluding restructuring and acquisition charges, were $975 million for the first quarter, compared with $857 million last year, an increase of 21 percent.
  
  
• LaSalle Investment Management's advisory fees grew 17 percent to $61 million and incentive fees were $19 million, contributing to a total revenue increase of 45 percent. LaSalle continued to successfully raise and deploy capital with $2.0 billion in equity raised in the first quarter.
  
  
• Adjusted EBITDA margin calculated on a fee revenue basis was 8.7 percent for the first quarter, compared with 5.9 percent last year.
  
  
• Adjusted earnings per share of $0.94 represents record first-quarter earnings, despite a negative foreign exchange impact of approximately $0.07 compared with a year ago.
  
  

Balance Sheet, Net Interest Expense and Dividend:

• In February, the firm announced that it had increased and extended its bank credit facility. The capacity of the facility increased to $2.0 billion from $1.2 billion, and the maturity was extended to February 2020.
  
  
• The firm's total net debt was $546 million at quarter end, a decrease of $185 million from the first quarter last year as the firm's strong cash generation continued.
  
  
• Net interest expense for the first quarter was $6.0 million, down from $6.6 million in the first quarter of 2014. The firm continues to benefit from both lower cost of debt and lower average borrowing.
  
  
• Reflecting confidence in the firm's cash generation, the Board of Directors declared a semi-annual dividend of $0.27 per share, an 8 percent increase from the $0.25 per share payment made in December 2014. The dividend payment will be made on June 15, 2015, to shareholders of record at the close of business on May 15, 2015.
  
  

Business Segment Performance Highlights

Americas Real Estate Services

Americas Revenue ($ in millions, "LC" = local currency)				Three Months Ended March 31,						% Change in USD		% Change in LC
				2015			2014
Leasing				$	229.3		$	187.7		22%		23%
Capital Markets & Hotels					74.8			41.1		82%		83%
Property & Facility Management Fee Revenue1					114.2			106.2		8%		10%
	Property & Facility Management				166.4			146.2		14%		18%
Project & Development Services Fee Revenue1					52.7			44.6		18%		21%
	Project & Development Services				53.4			45.4		18%		20%
Advisory, Consulting and Other					30.3			26.7		13%		14%
	Operating Revenue			$	501.3		$	406.3		23%		25%
Equity Earnings					0.3			0.2		50%		48%
Total Segment Fee Revenue1				$	501.6		$	406.5		23%		25%
		Total Segment Revenue		$	554.5		$	447.3		24%		26%

Americas Performance Highlights:

• Fee revenue for the quarter was $502 million, an increase of 25 percent from 2014. Revenue growth was broad-based, with Leasing up 23 percent, Capital Markets & Hotels up 83 percent, Property & Facility Management up 10 percent, and Project & Development Services up 21 percent, compared with last year.
  
  
• Fee-based operating expenses, excluding restructuring and acquisition charges, were $466 million for the quarter, up 21 percent from last year.
  
  
• Operating income was $35 million for the quarter, compared with $17 million in 2014.
  
  
• Adjusted EBITDA was $51 million for the quarter, compared with $30 million last year. Adjusted EBITDA margin calculated on a fee revenue basis was 10.2 percent, compared with 7.5 percent in 2014.
  
  

EMEA Real Estate Services

EMEA Revenue ($ in millions, "LC" = local currency)				Three Months Ended March 31,							% Change in USD		% Change in LC
				2015				2014
Leasing				$	48.4			$	54.1		(11)%		4%
Capital Markets & Hotels					75.2				54.5		38%		59%
Property & Facility Management Fee Revenue1					51.6				52.1		(1)%		14%
	Property & Facility Management				74.8				76.5		(2)%		11%
Project & Development Services Fee Revenue1					31.2				28.7		9%		27%
	Project & Development Services				79.9				82.1		(3)%		17%
Advisory, Consulting and Other					47.5				44.6		7%		20%
	Operating Revenue			$	253.9			$	234.0		9%		25%
Equity Losses					(0.4	)			--		n.m.		n.m.
Total Segment Fee Revenue1				$	253.5			$	234.0		8%		25%
		Total Segment Revenue		$	325.4			$	311.8		4%		21%
n.m. - not meaningful

EMEA Performance Highlights:

• EMEA's fee revenue performance during the first quarter was significantly higher in local currencies than in U.S. dollars due to the U.S. dollar exhibiting significantly more strength against European currencies in 2015 compared with 2014. Since revenue and expenses are generally incurred in the same currencies, the operating income and EBITDA impacts are modest relative to the revenue impact.
  
  
• Fee revenue for the quarter was $254 million, an increase of 25 percent from 2014. Revenue growth was driven by Capital Markets & Hotels, up 59 percent, and Property & Facility Management up 14 percent, compared with last year. Growth in the region for the year was broad-based, led by the UK, Germany and France.
  
  
• Fee-based operating expenses, excluding restructuring and acquisition charges, were $256 million for the quarter, compared with $239 million last year.
  
  
• Operating loss was $3 million for the quarter, compared with a loss of $5 million in 2014.
  
  
• Adjusted EBITDA was $2 million for the quarter, compared with $1 million last year. Adjusted EBITDA margin calculated on a fee revenue basis was 0.9 percent for the quarter, compared with 0.2 percent in 2014.
  
  

Asia Pacific Real Estate Services

Asia Pacific Revenue ($ in millions, "LC" = local currency)				Three Months Ended March 31,								% Change in USD		% Change in LC
				2015				2014
Leasing				$	28.4			$	27.4			4%		9%
Capital Markets & Hotels					27.4				21.8			26%		38%
Property & Facility Management Fee Revenue1					94.0				88.9			6%		13%
	Property & Facility Management				131.5				122.1			8%		14%
Project & Development Services Fee Revenue1					17.3				14.1			23%		31%
	Project & Development Services				29.4				21.9			34%		42%
Advisory, Consulting and Other					21.1				21.5			(2)%		5%
	Operating Revenue			$	188.2			$	173.7			8%		16%
Equity Losses					(0.1	)			(0.1	)		--%		(29)%
Total Segment Fee Revenue1				$	188.1			$	173.6			8%		16%
		Total Segment Revenue		$	237.7			$	214.6			11%		18%

Asia Pacific Performance Highlights:

• Fee revenue for the quarter was $188 million, an increase of 16 percent from 2014. Revenue growth was driven by Capital Markets & Hotels, up 38 percent, and Property & Facility Management, up 13 percent, compared with last year. Growth was led by Japan, Australia and India geographically, but also was broad-based across the region's Property & Facility Management business.
  
  
• Fee-based operating expenses, excluding restructuring and acquisition charges, were $184 million for the quarter, compared with $173 million last year, an increase of 13 percent.
  
  
• Operating income was $4 million for the quarter, compared with $1 million in 2014.
  
  
• Adjusted EBITDA was $8 million for the quarter, compared with $4 million last year. Adjusted EBITDA margin calculated on a fee revenue basis was 4.3 percent for the quarter, compared with 2.5 percent in 2014.
  
  

LaSalle Investment Management

LaSalle Investment Management Revenue ($ in millions, "LC" = local currency)			Three Months Ended March 31,						% Change in USD		% Change in LC
			2015			2014
Advisory Fees			$	60.7		$	55.9		9%		17%
Transaction Fees & Other				6.1			4.6		33%		45%
Incentive Fees				18.9			3.3		n.m.		n.m.
	Operating Revenue		$	85.7		$	63.8		34%		45%
Equity Earnings				11.5			8.8		31%		34%
Total Segment Revenue			$	97.2		$	72.6		34%		43%
n.m. - not meaningful

LaSalle Investment Management Performance Highlights:

• Advisory fees were $61 million for the quarter, up 17 percent from last year. Total segment revenue was $97 million for the quarter, compared with $73 million last year. This included $6 million of transaction fees and other income, $19 million of incentive fees and $12 million of equity earnings.
  
  
• Operating expenses were $69 million for the quarter, compared with $56 million last year.
  
  
• Operating income was $28 million for the quarter, compared with $16 million last year. Adjusted EBITDA was $28 million for the quarter, compared with $17 million last year. Adjusted EBITDA margin was 29.2 percent, compared with 23.2 percent in 2014.
  
  
• Capital raise was $2.0 billion for the quarter.
  
  
• Assets under management were $55.3 billion as of March 31, 2015, up from $53.6 billion at December 31, 2014. The net increase in assets under management resulted from $3.9 billion of acquisitions and takeovers, $2.6 billion of dispositions and withdrawals, $1.6 billion of net valuation increases and $1.2 billion of net foreign currency decreases.
  
  

About JLL
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. With annual fee revenue of $4.7 billion and gross revenue of $5.4 billion, JLL has more than 230 corporate offices, operates in more than 80 countries and has a global workforce of approximately 58,000. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3.4 billion square feet, or 316 million square meters, and completed $118 billion in sales, acquisitions and finance transactions in 2014. Its investment management business, LaSalle Investment Management, has $55.3 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 www.jll.com.

200 East Randolph Drive Chicago Illinois 60601 � 30 Warwick Street London W1B 5NH � 9 Raffles Place #39-00 Republic Plaza Singapore 048619

Cautionary Note Regarding Forward-Looking Statements
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, 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.

Conference Call

Management will conduct a conference call with shareholders, analysts and investment professionals on Tuesday, April 28, 2015 at 9:00 a.m. EDT.

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: [phone]
International callers: [phone]
Passcode: 24082845

Webcast

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 https://www.webcaster4.com/Webcast/Page/609/8228
3. Download free Windows Media Player software: (link located under registration form)
4. If you experience problems listening, please call the Webcast Hotline [phone] and provide your Event ID (102082).

Supplemental Information

Supplemental information regarding the first-quarter 2015 earnings call has been posted to the Investor Relations section of the company's website: www.jll.com.

Conference Call Replay

Available: 10:00 p.m. EDT Tuesday, April 28, 2015 through 11:59 p.m. EDT Friday, May 29, 2015 at the following numbers:

U.S. callers: [phone] or + 1 800 585 8367
International callers: [phone]
Passcode: 24082845

Web Audio Replay

An audio replay will be available for download or stream. Information and the link can be found on the company's website: www.jll.com.

If you have any questions, please contact JLL's Investor Relations department at: [e-mail].

JONES LANG LASALLE INCORPORATED
Consolidated Statements of Operations
For the Three Months Ended March 31, 2015 and 2014
(in thousands, except share data)
(Unaudited)
				Three Months Ended March 31,
				2015				2014
Revenue				$	1,203,511			$	1,037,442
	Operating expenses:
	Compensation and benefits				737,917				637,340
	Operating, administrative and other				387,197				356,999
	Depreciation and amortization				24,923				22,411
	Restructuring and acquisition charges 4				816				35,958
		Total operating expenses			1,150,853				1,052,708
		Operating income (loss) 1			52,658				(15,266	)
Interest expense, net of interest income					(6,038	)			(6,637	)
Equity earnings from real estate ventures					11,384				8,903
Income (loss) before income taxes and noncontrolling interest 4					58,004				(13,000	)
Provision for (benefit from) income taxes 4					14,733				(29,145	)
Net income 4					43,271				16,145
Net income attributable to noncontrolling interest					1,377				243
Net income attributable to the Company				$	41,894			$	15,902
Basic earnings per common share				$	0.93			$	0.36
Basic weighted average shares outstanding					44,843,629				44,513,813
Diluted earnings per common share 2				$	0.92			$	0.35
Diluted weighted average shares outstanding					45,373,911				45,201,708
EBITDA 3				$	88,965			$	16,048
Please reference attached financial statement notes.

JONES LANG LASALLE INCORPORATED
Segment Operating Results
For the Three Months Ended March 31, 2015 and 2014
(in thousands)
(Unaudited)
				Three Months Ended March 31,
				2015				2014
REAL ESTATE SERVICES
AMERICAS
	Revenue:
		Operating revenue		$	554,196			$	447,082
		Equity earnings			347				235
		Total segment revenue			554,543				447,317
		Gross contract costs1			(52,959	)			(40,783	)
		Total segment fee revenue			501,584				406,534
	Operating expenses:
		Compensation, operating and administrative expenses			503,577				417,009
		Depreciation and amortization			15,551				13,311
		Total segment operating expenses			519,128				430,320
		Gross contract costs1			(52,959	)			(40,783	)
		Total fee-based segment operating expenses			466,169				389,537
	Operating income			$	35,415			$	16,997
	Adjusted EBITDA			$	50,966			$	30,308
EMEA
	Revenue:
		Operating revenue		$	325,774			$	311,882
		Equity losses			(368	)			--
		Total segment revenue			325,406				311,882
		Gross contract costs1			(71,862	)			(77,853	)
		Total segment fee revenue			253,544				234,029
	Operating expenses:
		Compensation, operating and administrative expenses			323,086				311,346
		Depreciation and amortization			5,226				5,444
		Total segment operating expenses			328,312				316,790
		Gross contract costs1			(71,862	)			(77,853	)
		Total fee-based segment operating expenses			256,450				238,937
	Operating loss			$	(2,906	)		$	(4,908	)
	Adjusted EBITDA			$	2,320			$	536

				Three Months Ended March 31,
				2015				2014
ASIA PACIFIC
	Revenue:
		Operating revenue		$	237,750			$	214,705
		Equity losses			(53	)			(82	)
		Total segment revenue			237,697				214,623
		Gross contract costs1			(49,588	)			(40,967	)
		Total segment fee revenue			188,109				173,656
	Operating expenses:
		Compensation, operating and administrative expenses			229,622				210,305
		Depreciation and amortization			3,639				3,168
		Total segment operating expenses			233,261				213,473
		Gross contract costs1			(49,588	)			(40,967	)
		Total fee-based segment operating expenses			183,673				172,506
	Operating income			$	4,436			$	1,150
	Adjusted EBITDA			$	8,075			$	4,318
LASALLE INVESTMENT MANAGEMENT
	Revenue:
		Operating revenue		$	85,791			$	63,773
		Equity earnings			11,458				8,750
		Total segment revenue			97,249				72,523
	Operating expenses:
		Compensation, operating and administrative expenses			68,829				55,679
		Depreciation and amortization			507				488
		Total segment operating expenses			69,336				56,167
	Operating income			$	27,913			$	16,356
	Adjusted EBITDA			$	28,420			$	16,844
SEGMENT RECONCILING ITEMS
	Total segment revenue			$	1,214,895			$	1,046,345
	Reclassification of equity earnings				11,384				8,903
	Total revenue			$	1,203,511			$	1,037,442
	Total operating expenses before restructuring and acquisition charges				1,150,037				1,016,750
	Operating income before restructuring and acquisition charges			$	53,474			$	20,692
	Restructuring and acquisition charges				816				35,958
	Operating income (loss) after restructuring and acquisition charges			$	52,658			$	(15,266	)
	Total adjusted EBITDA			$	89,781			$	52,006
	Restructuring and acquisition charges				816				35,958
	Total EBITDA			$	88,965			$	16,048
Please reference attached financial statement notes.

JONES LANG LASALLE INCORPORATED
Consolidated Balance Sheets
March 31, 2015, December 31, 2014 and March 31, 2014
(in thousands)
				(Unaudited)								(Unaudited)
				March 31,				December 31,				March 31,
				2015				2014				2014
ASSETS
Current assets:
	Cash and cash equivalents			$	198,491			$	250,413			$	140,148
	Trade receivables, net of allowances				1,229,545				1,375,035				1,129,020
	Notes and other receivables				201,614				181,377				175,869
	Warehouse receivables				178,954				83,312				7,702
	Prepaid expenses				84,227				64,963				73,082
	Deferred tax assets, net				133,641				135,251				125,045
	Other				34,665				27,825				14,211
		Total current assets			2,061,137				2,118,176				1,665,077
Property and equipment, net of accumulated depreciation					353,818				368,361				316,765
Goodwill, with indefinite useful lives					1,870,534				1,907,924				1,903,409
Identified intangibles, net of accumulated amortization					36,014				38,841				43,614
Investments in real estate ventures					304,770				297,142				291,779
Long-term receivables					83,941				85,749				60,959
Deferred tax assets, net					98,539				90,897				88,747
Deferred compensation plans					124,062				111,234				92,776
Other					63,603				57,012				92,516
		Total assets		$	4,996,418			$	5,075,336			$	4,555,642
LIABILITIES AND EQUITY
Current liabilities:
	Accounts payable and accrued liabilities			$	548,060			$	630,037			$	491,129
	Accrued compensation				628,592				990,678				504,164
	Short-term borrowings				21,215				19,623				16,819
	Deferred tax liabilities, net				16,554				16,554				11,274
	Deferred income				96,915				104,565				98,324
	Deferred business acquisition obligations				45,802				49,259				35,649
	Warehouse facility				178,954				83,312				7,702
	Minority shareholder redemption liability				16,333				11,158				--
	Other				143,175				141,825				116,011
		Total current liabilities			1,695,600				2,047,011				1,281,072
Noncurrent liabilities:
	Credit facility				335,000				--				443,000
	Long-term senior notes				275,000				275,000				275,000
	Deferred tax liabilities, net				17,232				17,082				18,029
	Deferred compensation				137,100				125,857				107,484
	Deferred business acquisition obligations				67,135				68,848				100,384
	Minority shareholder redemption liability				--				--				10,456
	Other				112,475				118,969				95,904
		Total liabilities			2,639,542				2,652,767				2,331,329
Redeemable noncontrolling interest					9,185				13,449				--
Company shareholders' equity:
	Common stock, $.01 par value per share,100,000,000 shares authorized; 44,859,342, 44,828,779, and 44,541,623 shares issued and outstanding as of March 31, 2015, December 31, 2014 and March 31, 2014, respectively				449				448				445
	Additional paid-in capital				967,981				961,850				949,718
	Retained earnings				1,673,039				1,631,145				1,282,869
	Shares held in trust				(6,329	)			(6,407	)			(8,060	)
	Accumulated other comprehensive loss				(308,460	)			(200,239	)			(11,384	)
		Total Company shareholders' equity			2,326,680				2,386,797				2,213,588
	Noncontrolling interest				21,011				22,323				10,725
		Total equity			2,347,691				2,409,120				2,224,313
		Total liabilities and equity		$	4,996,418			$	5,075,336			$	4,555,642
Please reference attached financial statement notes.

JONES LANG LASALLE INCORPORATED
Summarized Consolidated Statements of Cash Flows
For the Three Months Ended March 31, 2015 and 2014
(in thousands)
			Three Months Ended
			March 31,
			2015				2014
Cash used in operating activities			$	(335,770	)		$	(263,219	)
Cash used in investing activities				(21,054	)			(39,297	)
Cash provided by financing activities				313,381				290,147
Effect of currency exchange rate changes on cash and cash equivalents				(8,479	)			(209	)
	Net decrease in cash and cash equivalents		$	(51,922	)		$	(12,578	)
Cash and cash equivalents, beginning of period				250,413				152,726
Cash and cash equivalents, end of period			$	198,491			$	140,148
Please reference attached financial statement notes.

JONES LANG LASALLE INCORPORATED

Financial Statement Notes

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 months ended March 31, 2015 and 2014.

		Three Months Ended
		March 31,
($ in millions)		2015				2014
Revenue		$	1,203.5			$	1,037.4
Gross contract costs			(174.4	)			(159.6	)
Fee revenue		$	1,029.1			$	877.8
Operating expenses		$	1,150.9			$	1,052.7
Gross contract costs			(174.4	)			(159.6	)
Fee-based operating expenses		$	976.5			$	893.1
Operating income (loss)		$	52.6			$	(15.3	)
Add:
Restructuring and acquisition charges*			0.8				36.0
Adjusted operating income		$	53.4			$	20.7
Adjusted operating income margin			5.2	%			2.4	%

*See note 4 for more information on restructuring and acquisition charges

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 months ended March 31, 2015, and 2014. 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:

		Three Months Ended
		March 31,
($ in millions, except per share data)		2015			2014
GAAP net income attributable to common shareholders		$	41.9		$	15.9
Shares (in 000s)			45,374			45,202
GAAP diluted earnings per share		$	0.92		$	0.35
GAAP net income attributable to common shareholders		$	41.9		$	15.9
Restructuring and acquisition charges, net*			0.6			1.1
Adjusted net income		$	42.5		$	17.0
Shares (in 000s)			45,374			45,202
Adjusted diluted earnings per share		$	0.94		$	0.38

*See note 4 for more information on restructuring and acquisition charges

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:

		Three Months Ended
		March 31,
($ in millions)		2015			2014
GAAP net income		$	43.3		$	16.1
Add:
Interest expense, net of interest income			6.0			6.6
Provision for (benefit from) income taxes			14.7			(29.1	)
Depreciation and amortization			24.9			22.4
EBITDA		$	88.9		$	16.0
Add:
Restructuring and acquisition charges			0.8			36.0
Adjusted EBITDA		$	89.7		$	52.0

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.

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 Quarterly Report on Form 10-Q for the quarter ended March 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
Global Chief Financial Officer
[phone]