JLL Reports 13 Percent First-Quarter 2014 Fee Revenue Growth

CHICAGO, IL--(Marketwired - Apr 30, 2014) - Jones Lang LaSalle Incorporated (NYSE: JLL) today reported adjusted earnings per share ("EPS") of $0.39 for the first quarter of 2014. First-quarter fee revenue totaled $878 million, up 13 percent from the first quarter of 2013. All percentage variances are calculated on a local currency basis.

• Broad-based revenue growth led by Leasing and Property & Facility Management
• Global transaction pipelines and client confidence remain strong
• LaSalle Investment Management raised nearly $1 billion of equity commitments
• Investments in recruitment, IT and data strengthen platform
• 5 percent increase in semi-annual dividend, to $0.23 per share, reflects robust cash generation

Summary Financial Results  ($ in millions, except per share data)		Three Months Ended
		March 31,
		2014			2013
Revenue		$	1,037		$	856
Fee Revenue1		$	878		$	781
Adjusted Net Income2		$	17		$	16
U.S. GAAP Net Income		$	16		$	13
Adjusted Earnings per Share2		$	0.39		$	0.36
Earnings per Share		$	0.35		$	0.29
Adjusted EBITDA3		$	52		$	48
	Adjusted EBITDA, Real Estate Services	$	35		$	34
	Adjusted EBITDA, LaSalle Investment Management	$	17		$	14

See Financial Statement Notes (1), (2) and (3) following the Financial Statements in this news release

"Solid first-quarter revenue and profits produced a good start to 2014 for JLL," said Colin Dyer, the firm's President and CEO. "The broad strength of our business globally and improved client confidence in market conditions point to another year of healthy growth for the firm," Dyer added.

Consolidated Revenue  ($ in millions, "LC" = local currency)			Three Months Ended March 31,						% Change in LC
			2014			2013
Real Estate Services ("RES")
Leasing			$	270.4		$	229.2		18%
Capital Markets & Hotels				115.5			120.7		(6)%
Property & Facility Management Fee Revenue1				247.8			212.1		20%
	Property & Facility Management			345.3			251.1		42%
Project & Development Services Fee Revenue1				87.4			77.1		14%
	Project & Development Services			149.5			113.6		31%
Advisory, Consulting and Other				92.9			81.7		12%
	Total RES Fee Revenue1		$	814.0		$	720.8		14%
		Total RES Revenue	$	973.6		$	796.3		23%
LaSalle Investment Management
Advisory Fees			$	55.9		$	56.4		(2)%
Transaction Fees & Other				4.6			3.1		52%
Incentive Fees				3.3			0.2		n/m
	Total LaSalle Investment Management Revenue		$	63.8		$	59.7		6%
Total Firm Fee Revenue1			$	877.8		$	780.5		13%
	Total Firm Revenue		$	1,037.4		$	856.0		22%

n/m - not meaningful

Consolidated Performance Highlights:

• Consolidated fee revenue was $878 million for the quarter, up $97 million or 13 percent, from 2013. Growth was broad-based, led by Leasing, up $41 million or 18 percent, and Property & Facility Management, up $36 million or 20 percent.
• Consolidated fee-based operating expenses, excluding restructuring and acquisition charges, were $857 million for the quarter, compared with $757 million last year, an increase of 14 percent.
• LaSalle Investment Management's advisory fees for the quarter remained steady compared with last year while transaction and incentive fee growth contributed to a total revenue increase of 6 percent. Its fundraising success continued in the first quarter with $930 million of equity raised.
  
  

Balance Sheet and Dividend:

• The firm's total net debt was $731 million at quarter end, a decrease of $139 million from the first quarter last year as the firm's strong cash generation continues. Total net debt at March 31, 2014, increased from $437 million at year end 2013, driven by incentive compensation payments in the first quarter of the year and consistent with seasonal borrowing patterns. 
• Net interest expense for the first quarter was $6.6 million, compared with $7.9 million in 2013. The reduction was driven both by lower debt levels and improved pricing on the firm's long-term credit facility, which was renewed in October 2013.
• Reflecting confidence in the firm's cash generation, the Board of Directors announced a semi-annual dividend of $0.23 per share, a 5 percent increase from the $0.22 per share payment made in December 2013. The dividend payment will be made on June 13, 2014, to shareholders of record at the close of business on May 15, 2014.
  
  

Business Segment Performance Highlights
Americas Real Estate Services

Americas Revenue  ($ in millions, "LC" = local currency)		Three Months Ended March 31,						% Change in LC
		2014			2013
Leasing		$	188.6		$	152.3		24%
Capital Markets & Hotels			40.2			38.7		4%
Property & Facility Management Fee Revenue1			106.3			89.4		21%
	Property & Facility Management		146.2			108.5		39%
Project & Development Services Fee Revenue1			44.6			37.7		20%
	Project & Development Services		45.5			37.9		22%
Advisory, Consulting and Other			26.6			24.1		11%
	Operating Revenue	$	406.3		$	342.2		20%
Equity Earnings			0.2			0.2		0%
Total Segment Fee Revenue1		$	406.5		$	342.4		20%
	Total Segment Revenue	$	447.3		$	361.7		25%

Americas Performance Highlights:

• Fee revenue for the quarter was $407 million, an increase of 20 percent from 2013. Double-digit growth was achieved in Leasing, up $36 million or 24 percent, as well as Property & Facility Management and Project & Development Services.
• Fee-based operating expenses, excluding restructuring and acquisition charges, were $390 million for the quarter, up 20 percent from last year.
• Operating income was $17 million for the quarter, compared with $15 million in 2013.
• Adjusted EBITDA was $30 million for the quarter, compared with $25 million last year. Adjusted EBITDA margin calculated on a fee revenue basis was 7.5 percent, compared with 7.3 percent in 2013.
  
  

EMEA Real Estate Services

EMEA Revenue  ($ in millions, "LC" = local currency)		Three Months Ended March 31,						% Change in LC
		2014			2013
Leasing		$	54.0		$	48.9		6%
Capital Markets & Hotels			54.4			58.2		(11)%
Property & Facility Management Fee Revenue1			52.1			40.4		24%
	Property & Facility Management		76.5			42.7		73%
Project & Development Services Fee Revenue1			28.7			24.1		13%
	Project & Development Services		82.1			56.0		40%
Advisory, Consulting and Other			44.8			39.1		9%
	Operating Revenue	$	234.0		$	210.7		6%
Equity Earnings			0.0			0.0		0%
Total Segment Fee Revenue1		$	234.0		$	210.7		6%
	Total Segment Revenue	$	311.8		$	244.9		22%

EMEA Performance Highlights:

• Fee revenue for the quarter was $234 million, an increase of 6 percent from 2013, driven by fee revenue increases of 24 percent in Property & Facility Management and 13 percent in Project & Development Services. Leasing revenue also increased 6 percent in the quarter. Capital Markets & Hotels revenue of $54 million compared against a 2013 result that was up 50 percent against the prior year and included significant contributions from Russia.
• Fee-based operating expenses, excluding restructuring and acquisition charges, were $239 million for the quarter, up 8 percent from last year.
• Adjusted operating income, which excludes King Sturge amortization, was a loss of $4 million for the quarter, compared with a $1 million loss in 2013.
• Adjusted EBITDA was $1 million for the quarter, compared with $3 million last year. Adjusted EBITDA margin calculated on a fee revenue basis was 0.2 percent, down from 1.6 percent last year.
  
  

Asia Pacific Real Estate Services 

Asia Pacific Revenue  ($ in millions, "LC" = local currency)		Three Months Ended March 31,						% Change in LC
		2014			2013
Leasing		$	27.8		$	28.0		5%
Capital Markets & Hotels			20.9			23.8		(7)%
Property & Facility Management Fee Revenue1			89.4			82.3		17%
	Property & Facility Management		122.6			99.9		32%
Project & Development Services Fee Revenue1			14.1			15.3		0%
	Project & Development Services		21.9			19.7		22%
Advisory, Consulting and Other			21.5			18.5		22%
	Operating Revenue	$	173.7		$	167.9		11%
Equity Earnings			(0.1)			0.1		n/m
Total Segment Fee Revenue1		$	173.6		$	168.0		11%
	Total Segment Revenue	$	214.6		$	190.0		21%

n/m - not meaningful

Asia Pacific Performance Highlights:

• Fee revenue for the quarter was $174 million, an increase of 11 percent from 2013. Property & Facility Management fee revenue was up 17 percent, bolstered by the ongoing success of the region's corporate outsourcing business.
• Fee-based operating expenses, excluding restructuring and acquisition charges, were $173 million for the quarter, up 11 percent from last year.
• Operating income was $1 million for the quarter, compared with $2 million in 2013.
• Adjusted EBITDA was $4 million for the quarter, compared with $6 million last year. Adjusted EBITDA margin calculated on a fee revenue basis was 2.5 percent, down from 3.3 percent last year.
  
  

LaSalle Investment Management

LaSalle Investment Management Revenue  ($ in millions, "LC" = local currency)		Three Months Ended March 31,						% Change in LC
		2014			2013
Advisory Fees		$	55.9		$	56.4		(2)%
Transaction Fees & Other			4.6			3.1		52%
Incentive Fees			3.3			0.2		n/m
	Operating Revenue	$	63.8		$	59.7		6%
Equity Earnings			8.8			5.2		65%
Total Segment Revenue		$	72.6		$	64.9		11%

n/m - not meaningful

LaSalle Investment Management Performance Highlights:

• Advisory fees were $56 million for the quarter, consistent with the first quarter of 2013. Total segment revenue, including transaction fees, incentive fees and equity earnings, was $73 million for the quarter, compared with $65 million last year.
• Operating expenses were $56 million for the quarter, compared with $52 million last year.
• Operating income was $16 million for the quarter, compared with $13 million in 2013. Operating income margin was 22.6 percent, up from 20.4 percent last year.
• LaSalle Investment Management raised $930 million of equity commitments during the quarter.
• Assets under management were $48.0 billion as of March 31, 2014, compared with $47.6 billion at December 31, 2013. The net increase in assets under management resulted from $2.1 billion of acquisitions and takeovers, $2.7 billion of dispositions and withdrawals, $0.9 billion of net value increase and $0.1 billion of net increase due to foreign currency movements.
  
  

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 billion, JLL has more than 200 corporate offices and operates in 75 countries worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3 billion square feet and completed $99 billion in sales, acquisitions and finance transactions in 2013. Its investment management business, LaSalle Investment Management, has $48.0 billion of real estate assets under management. 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

Statements in this press 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. 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 JLL's Annual Report on Form 10-K for the year ended December 31, 2013, 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. Statements speak only as of the date of this release. JLL expressly disclaims any obligation or undertaking to 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

The firm will conduct a conference call for shareholders, analysts and investment professionals on Wednesday, April 30 at 9:00 a.m. EDT.

To participate in the conference call, please dial into one of the following phone numbers five to ten minutes before the start time:

• U.S. callers: +1 877 800 0896
  
  
• International callers: +1 706 679 7364
  
  
• Pass code: 29011776
  
  

Webcast

Follow these steps to listen to the webcast:

1. You must have a minimum 14.4 Kbps Internet connection

2. Log on to http://www.visualwebcaster.com/event.asp?id=98921 and follow instructions

3. Download free Windows Media Player software: (link located under registration form)

4. If you experience problems listening, please call the Webcast Hotline +1 877 863 2113 and provide your Event ID (98921).

Supplemental Information

Supplemental information regarding the first-quarter 2014 earnings call has been posted to the Investor Relations section of the company's website: www.jll.com.

Conference Call Replay

Available: 12:00 p.m. EDT Wednesday, April 30 through 11:30 p.m. EDT Friday, May 30 at the following numbers:

• U.S. callers: + 1 855 859 2056 or + 1 800 585 8367
  
  
• International callers: + 1 404 537 3406
  
  
• Pass code: 29011776
  
  

Web Audio Replay

Audio replay will be available for download or stream. This information and link is also available on the company's website: www.jll.com.

If you have any questions, email JLL's Investor Relations department at JLLInvestorRelations@am.jll.com.

JONES LANG LASALLE INCORPORATED
Consolidated Statements of Operations
For the Three Months Ended March 31, 2014 and 2013
(in thousands, except share data)
(Unaudited)
			Three Months Ended
			March 31,
			2014				2013
Revenue			$	1,037,442			$	855,988
Operating expenses:
	Compensation and benefits			637,340				563,720
	Operating, administrative and other			356,999				249,921
	Depreciation and amortization			22,411				19,079
	Restructuring and acquisition charges4			35,958				3,168
		Total operating expenses		1,052,708				835,888
		Operating income (loss)1		(15,266	)			20,100
Interest expense, net of interest income				(6,637	)			(7,923	)
Equity earnings from real estate ventures				8,903				5,482
Income (loss) before income taxes and noncontrolling interest4				(13,000	)			17,659
Provision for (benefit from) income taxes4				(29,145	)			4,397
Net income4				16,145				13,262
Net income attributable to noncontrolling interest				243				106
Net income attributable to the Company			$	15,902			$	13,156
Basic earnings per common share			$	0.36			$	0.30
Basic weighted average shares outstanding				44,513,813				44,080,767
Diluted earnings per common share2			$	0.35			$	0.29
Diluted weighted average shares outstanding				45,201,708				45,055,399
EBITDA3			$	16,048			$	44,662
Please reference attached financial statement notes.

JONES LANG LASALLE INCORPORATED
Segment Operating Results
For the Three Months Ended March 31, 2014 and 2013
(in thousands)
(Unaudited)
				Three Months Ended
				March 31,
				2014				2013
REAL ESTATE SERVICES
	AMERICAS
		Revenue:
			Operating revenue	$	447,082			$	361,467
			Equity earnings		235				217
			Total segment revenue		447,317				361,684
			Gross contract costs1		(40,783	)			(19,278	)
			Total segment fee revenue		406,534				342,406
		Operating expenses:
			Compensation, operating and administrative expenses		417,009				336,559
			Depreciation and amortization		13,311				10,453
			Total segment operating expenses		430,320				347,012
			Gross contract costs1		(40,783	)			(19,278	)
			Total fee-based segment operating expenses		389,537				327,734
			Operating income	$	16,997			$	14,672
			Adjusted EBITDA	$	30,308			$	25,125
	EMEA
		Revenue:
			Operating revenue	$	311,882			$	244,905
			Equity earnings		-				-
			Total segment revenue		311,882				244,905
			Gross contract costs1		(77,853	)			(34,207	)
			Total segment fee revenue		234,029				210,698
		Operating expenses:
			Compensation, operating and administrative expenses		311,346				241,525
			Depreciation and amortization		5,444				4,983
			Total segment operating expenses		316,790				246,508
			Gross contract costs1		(77,853	)			(34,207	)
			Total fee-based segment operating expenses		238,937				212,301
			Operating loss	$	(4,908	)		$	(1,603	)
			Adjusted EBITDA	$	536			$	3,380
				Three Months Ended
				March 31,
				2014				2013
	ASIA PACIFIC
		Revenue:
			Operating revenue	$	214,705			$	189,901
			Equity earnings (losses)		(82	)			114
			Total segment revenue		214,623				190,015
			Gross contract costs1		(40,967	)			(21,997	)
			Total segment fee revenue		173,656				168,018
		Operating expenses:
			Compensation, operating and administrative expenses		210,305				184,449
			Depreciation and amortization		3,168				3,128
			Total segment operating expenses		213,473				187,577
			Gross contract costs1		(40,967	)			(21,997	)
			Total fee-based segment operating expenses		172,506				165,580
			Operating income	$	1,150			$	2,438
			Adjusted EBITDA	$	4,318			$	5,566
LASALLE INVESTMENT MANAGEMENT
	Revenue:
			Operating revenue	$	63,773			$	59,715
			Equity earnings		8,750				5,151
			Total segment revenue		72,523				64,866
		Operating expenses:
			Compensation, operating and administrative expenses		55,679				51,107
			Depreciation and amortization		488				516
			Total segment operating expenses		56,167				51,623
			Operating income	$	16,356			$	13,243
			Adjusted EBITDA	$	16,844			$	13,759
SEGMENT RECONCILING ITEMS:
	Total segment revenue			$	1,046,345			$	861,470
	Reclassification of equity earnings				8,903				5,482
	Total revenue			$	1,037,442			$	855,988
	Total operating expenses before restructuring and acquisition charges				1,016,750				832,720
	Operating income before restructuring and acquisition charges			$	20,692			$	23,268
	Restructuring and acquisition charges				35,958				3,168
	Operating income (loss) after restructuring and acquisition charges			$	(15,266	)		$	20,100
	Total adjusted EBITDA			$	52,006			$	47,830
	Restructuring and acquisition charges				35,958				3,168
	Total EBITDA			$	16,048			$	44,662
Please reference attached financial statement notes.

JONES LANG LASALLE INCORPORATED
Consolidated Balance Sheets
March 31, 2014, December 31, 2013 and March 31, 2013
(in thousands)
			(Unaudited)								(Unaudited)
			March 31,				December 31,				March 31,
			2014				2013				2013
ASSETS
Current assets:
	Cash and cash equivalents		$	140,148			$	152,726			$	133,470
	Trade receivables, net of allowances			1,129,020				1,237,514				913,615
	Notes and other receivables			175,869				94,519				104,767
	Warehouse receivables			7,702				-				137,445
	Prepaid expenses			73,082				56,491				56,646
	Deferred tax assets, net			125,045				130,822				52,050
	Other			14,211				52,156				21,568
		Total current assets		1,665,077				1,724,228				1,419,561
Property and equipment, net of accumulated depreciation				316,765				295,547				260,961
Goodwill, with indefinite useful lives				1,903,409				1,900,080				1,836,933
Identified intangibles, net of accumulated amortization				43,614				45,579				43,556
Investments in real estate ventures				291,779				287,200				272,161
Long-term receivables				60,959				65,353				64,698
Deferred tax assets, net				88,747				104,654				189,176
Other				185,292				174,712				148,201
		Total assets	$	4,555,642			$	4,597,353			$	4,235,247
LIABILITIES AND EQUITY
Current liabilities:
	Accounts payable and accrued liabilities		$	491,129			$	528,505			$	399,832
	Accrued compensation			504,164				810,425				413,705
	Short-term borrowings			16,819				24,522				37,798
	Deferred tax liabilities, net			11,274				11,274				10,113
	Deferred income			98,324				104,410				59,396
	Deferred business acquisition obligations			35,649				36,040				119,302
	Warehouse facility			7,702				-				137,445
	Other			116,011				143,248				101,637
		Total current liabilities		1,281,072				1,658,424				1,279,228
Noncurrent liabilities:
	Credit facility			443,000				155,000				470,000
	Long-term senior notes			275,000				275,000				275,000
	Deferred tax liabilities, net			18,029				18,029				3,106
	Deferred compensation			107,484				103,199				82,936
	Deferred business acquisition obligations			100,384				99,196				100,847
	Minority shareholder redemption liability			10,456				20,667				19,707
	Other			95,904				77,029				73,913
		Total liabilities		2,331,329				2,406,544				2,304,737
			(Unaudited)								(Unaudited)
			March 31,				December 31,				March 31,
			2014				2013				2013
Company shareholders' equity:
	Common stock, $.01 par value per share, 100,000,000 shares authorized; 44,541,623, 44,447,958 and 44,084,721 shares issued and outstanding as of March 31, 2014, December 31, 2013 and March 31, 2013, respectively			445				444				441
	Additional paid-in capital			949,718				945,512				939,058
	Retained earnings			1,282,869				1,266,967				1,030,284
	Shares held in trust			(8,060	)			(8,052	)			(7,558	)
	Accumulated other comprehensive loss			(11,384	)			(25,202	)			(39,679	)
		Total Company shareholders' equity		2,213,588				2,179,669				1,922,546
	Noncontrolling interest			10,725				11,140				7,964
		Total equity		2,224,313				2,190,809				1,930,510
		Total liabilities and equity	$	4,555,642			$	4,597,353			$	4,235,247
Please reference attached financial statement notes.

JONES LANG LASALLE INCORPORATED
Summarized Consolidated Statements of Cash Flows
For the Three Months Ended March 31, 2014 and 2013
(in thousands)
		Three Months Ended
		March 31,
		2014				2013
Cash used in operating activities		$	(263,428	)		$	(301,456	)
Cash used in investing activities			(39,297	)			(20,777	)
Cash provided by financing activities			290,147				303,544
	Net decrease in cash and cash equivalents	$	(12,578	)		$	(18,689	)
Cash and cash equivalents, beginning of period			152,726				152,159
Cash and cash equivalents, end of period		$	140,148			$	133,470
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 and intangible amortization related to the King Sturge acquisition. "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, 2014, and 2013.

	Three Months Ended
	March 31,
($ in millions)	2014				2013
Revenue	$	1,037.4			$	856.0
Gross contract costs		(159.6	)			(75.5	)
Fee revenue	$	877.8			$	780.5
Operating expenses	$	1,052.7			$	835.9
Gross contract costs		(159.6	)			(75.5	)
Fee-based operating expenses	$	893.1			$	760.4
Operating income (loss)	$	(15.3	)		$	20.1
Add:
Restructuring and acquisition charges*		36.0				3.2
King Sturge intangible amortization		0.6				0.6
Adjusted operating income	$	21.3			$	23.9
Adjusted operating income margin		2.4	%			3.1	%

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

2. Charges excluded from GAAP net income attributable to common shareholders to arrive at adjusted net income for the three months ended March 31, 2014, and 2013 are (a) net restructuring and acquisition charges and (b) net intangible amortization related to the 2011 King Sturge acquisition. Below are reconciliations of GAAP net income attributable to common shareholders to adjusted net income and calculations of earnings per share ("EPS") for each net income total:

		Three Months Ended
		March 31,
($ in millions, except per share data)		2014			2013
GAAP net income attributable to common shareholders		$	15.9		$	13.2
Shares (in 000s)			45,202			45,055
GAAP diluted earnings per share		$	0.35		$	0.29
GAAP net income attributable to common shareholders		$	15.9		$	13.2
Restructuring and acquisition charges, net*			1.1			2.4
King Sturge intangible amortization, net			0.4			0.4
Adjusted net income		$	17.4		$	16.0
Shares (in 000s)			45,202			45,055
Adjusted diluted earnings per share		$	0.39		$	0.36

*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)	2014				2013
GAAP net income	$	16.1			$	13.3
Add:
Interest expense, net of interest income		6.6				7.9
Provision for (benefit from) income taxes		(29.1	)			4.4
Depreciation and amortization		22.4				19.1
EBITDA	$	16.0			$	44.7
Add:
Restructuring and acquisition charges		36.0				3.2
Adjusted EBITDA	$	52.0			$	47.9

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 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 of $36 million in the quarter ended March 31, 2014 include $35 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.

	Three Months Ended
	March 31, 2014
($ in millions)	GAAP				Adjusting Item			Adjusted
Income (loss) before income taxes and noncontrolling interest	$	(13.0	)		$	34.5		$	21.5
Provision for (benefit from) income taxes		(29.1	)		$	34.5			5.4
Net income	$	16.1						$	16.1

Excluding the impact of this item, the adjusted provision for income taxes of $5.4 million reflects a 25 percent effective rate on adjusted income before income taxes of $21.5 million.

5. Intangible amortization from the second-quarter 2011 King Sturge acquisition is included in depreciation and amortization in the firm's consolidated results, as well as in EMEA's segment results, but has been excluded from adjusted operating income and adjusted net income.

6. 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. The Investment Management segment provides investment management services to institutional investors and high-net-worth individuals.

7. 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-Q for the quarter ended March 31, 2014, to be filed with the Securities and Exchange Commission shortly.

8. 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.

9. Certain prior year amounts have been reclassified to conform to the current presentation.