JLL

JLL Drops Non-GAAP Measures, Shares Move 1.1%

Jones Lang LaSalle Incorporated (JLL) recently announced several reporting changes, effective January 1, 2024. As part of these changes, the company has stopped reporting the non-GAAP measures "Fee revenue" and "Fee-based operating expenses." Consequently, the adjusted EBITDA margin is no longer reported. The Securities and Exchange Commission Staff's comment letter in February 2024 influenced this decision.

JLL also refined the calculation of LaSalle’s assets under management (AUM) to include uncalled committed capital and cash. This adjustment affects the discussion of revenue and associated growth rates, including Gross Contract Costs and net non-cash MSR and mortgage banking derivative activity. Notably, this change primarily impacts JLL's Work Dynamics segment and the Property Management business line within its Markets Advisory segment.

Additionally, the definitions of Adjusted EBITDA and Adjusted net income attributable to common shareholders were updated to exclude JLL Technologies and LaSalle equity earnings/losses. Furthermore, the calculation of LaSalle’s AUM was refined to include uncalled committed capital and cash based on a new standard industry definition developed by industry groups.

These presentation changes have no impact on how JLL manages its business, net income (loss) attributable to common shareholders, earnings (loss) per share (EPS), or cash flow.

In terms of financial performance, here are some key figures:

  • Total Segment to Consolidated Reconciliation Revenue:
  • FY 2020: $16,589.9 million
  • FY 2021: $19,367.0 million
  • FY 2022: $20,862.1 million
  • FY 2023: $20,760.8 million

  • Gross Contract Costs:

  • FY 2020: $10,464.4 million
  • FY 2021: $11,290.2 million
  • FY 2022: $12,549.1 million
  • FY 2023: $13,375.9 million

  • Total Segment Operating Income:

  • FY 2020: $701.5 million
  • FY 2021: $1,128.2 million
  • FY 2022: $972.9 million
  • FY 2023: $677.2 million

  • Capital Markets Revenue:

  • FY 2020: $1,763.5 million
  • FY 2021: $2,620.5 million
  • FY 2022: $2,488.2 million
  • FY 2023: $1,778.0 million

These figures illustrate the changes in JLL's financial performance over the specified periods, reflecting the company's evolving reporting practices and financial results. The market has reacted to these announcements by moving the company's shares 1.1% to a price of $182.65. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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