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Trevena Reports Third Quarter 2024 Results and Provides Business Update

07.11.2024 by admin

CHESTERBROOK, Pa., Nov. 07, 2024 (GLOBE NEWSWIRE) — Trevena, Inc. TRVN, a biopharmaceutical company focused on the development and commercialization of novel medicines for patients with central nervous system (CNS) disorders, today reported its financial results for the third quarter ended September 30, 2024 and provided an overview of its recent operational updates.

Third Quarter 2024 and Recent Corporate Updates

$2 million Non-Dilutive Financing Tranche. In July 2024, the Company announced receipt of a non-dilutive, $2 million tranche in connection with an amendment (the “Amendment”) to its existing ex-US royalty financing with R-Bridge Healthcare Fund (“R-Bridge”). The Company is further eligible to receive up to an additional $8 million based on future milestones. As part of the Amendment, (i) certain OLINVYK Chinese IP that had been previously pledged to R-Bridge under the Royalty Financing was transferred to R-Bridge, (ii) warrants previously issued to R-Bridge as part of the Royalty Financing were amended to reduce the exercise price to a 15% premium to the then-current stock price and to extend the exercise period to five years from the effective date of the Amendment, (iii) the existing cap on the US royalty payable to R-Bridge was increased from $10 million to $12 million (with no minimum or fixed payments), and (iv) R-Bridge agreed to forgive $10.0 million of the amount that was outstanding to them prior to the Amendment. This $10.0 million forgiveness was determined to be a troubled debt restructuring and therefore no gain will be recognized by the Company for accounting purposes.
Reverse Stock Split. In August 2024 the Company effected a 1-for-25 reverse stock of the Company’s common stock (the “Reverse Stock Split”). As a result of the Reverse Stock Split, each 25 shares of the Company’s issued and outstanding common stock were automatically combined into one validly issued, fully paid and non-assessable share of common stock. In addition, proportional adjustments were made to the number of shares of the Company’s common stock issuable under the Company’s equity incentive plans and all outstanding securities and other rights convertible or exercisable into shares of the Company’s common stock, including all stock options and warrants outstanding immediately prior to the effectiveness of the Reverse Stock Split. The Reverse Stock Split did not have any effect on the stated par value of the Company’s common stock.
Nasdaq Delisting and Subsequent Initiation of Trading on OTC Pink Sheets. On October 4, 2024, the Company announced that it had received notice that the Nasdaq Hearings Panel (the “Panel”) had determined to delist the Company’s common stock from The Nasdaq Stock Market LLC (“Nasdaq”) due to the Company’s failure to comply with the minimum stockholder’s equity requirement under Nasdaq Listing Rule 5550(b)(1) (the “Equity Standard Rule”). As previously disclosed, the Panel had provided the Company until October 2, 2024, to regain compliance with the Equity Standard Rule. Trading in the Company’s common stock was suspended on Nasdaq effective with the open of business on October 8, 2024, and the Company’s common stock began trading on the Pink Open Market operated by the OTC Markets Group, Inc. (commonly referred to as the “pink sheets”) on October 8, 2024 under the trading symbol “TRVN.”
Additional Cost-Cutting Measures. On October 5, 2024, in connection with certain cost-cutting measures, the Board of Directors (“the Board”) approved the termination of employment, without cause, of three senior executives: Carrie Bourdow (President & CEO), Mark Demitrack (SVP & CMO), and Barry Shin (EVP & COO/CFO). The terminations did not involve any disagreement concerning the Company’s operations, policies or practices, and the Board thanked these executives for their service to the Company. Following the effectiveness of these terminations, Ms. Bourdow continues to serve as Chairman of the Board and Acting CEO; Mr. Demitrack continues to serve as Acting CMO; Mr. Shin continues to serve as Acting COO/CFO; and all entered into consulting agreements with the Company. Following these cost-cutting measures, the Company has four employees.
Resignation of Certain Directors. On November 5, 2024, in connection with the ongoing cost-cutting measures, Mark Corrigan, M.D.; Marvin H. Johnson, Jr.; Jake R. Nunn; and Anne M. Phillips each informed the Company of his or her intent to resign from the Board and the committees thereof, effective as of November 5, 2024. None of these resignations was related to any disagreement with the Company over any of its operations, policies or practices. Carrie Bourdow continues to serve as Chairman of the Board and Scott Braunstein, M.D. and Barbara Yanni continue to serve as directors of the Company.
Continued Strategic Review. The Company continues its review of strategic alternatives, including for OLINVYK, TRV045 and its other pipeline assets. There can be no assurance regarding the schedule for completion of the strategic review process, that this strategic review process will result in the Company pursuing any transaction or that any transaction, if pursued, will be completed. Potential strategic alternatives that may be explored or evaluated include, but are not limited to, a sale, license, divestiture or discontinuation of US commercial sales of OLINVYK; a sale, license or divestiture of our pipeline assets; or a sale, merger or wind down of the Company.

Financial Results and Other Updates for Third Quarter 2024
For the third quarter of 2024, the Company reported a net loss attributable to common stockholders of $4.9 million, or $5.79 per share, compared to $7.9 million, or $14.20 per share in the third quarter of 2023. Cash and cash equivalents were $13.5 million as of September 30, 2024.

About Trevena

Trevena, Inc. is a biopharmaceutical company focused on the development and commercialization of innovative medicines for patients with CNS disorders. The Company has one approved product in the United States, OLINVYK^® (oliceridine) injection, indicated in adults for the management of acute pain severe enough to require an intravenous opioid analgesic and for whom alternative treatments are inadequate. The Company’s novel pipeline is based on Nobel Prize winning research and includes three differentiated investigational drug candidates: TRV045 for diabetic neuropathic pain and epilepsy, TRV250 for the acute treatment of migraine and TRV734 for maintenance treatment of opioid use disorder.

For more information, please visit www.Trevena.com

About TRV045

TRV045 is a novel, highly selective sphingosine-1-phosphate subtype 1 (S1P₁) receptor modulator being developed as a potential treatment for acute and chronic neuropathic pain secondary to diabetic peripheral neuropathy. Through a collaboration with the National Institutes of Health, Trevena is also exploring TRV045 as a potential treatment for epilepsy.

S1P receptors are located throughout the body, including the central nervous system, where they are believed to play a role in modulating neurotransmission and membrane excitability.

Trevena’s discovery efforts have identified a family of compounds that are highly selective for the S1P₁ receptor. TRV045 reversed thermal hyperalgesia, a measure of neuropathic pain, in nonclinical models of diabetic peripheral neuropathy and chemotherapy-induced peripheral neuropathy. TRV045 was not associated with lymphopenia and produced no changes in blood pressure, heart rate, or respiratory function at or above pharmacologically active doses in nonclinical studies. TRV045 is an investigational product and is not yet approved by the FDA. Subjects in both studies referenced in this press release were enrolled outside of the United States, and the studies were not conducted under the Investigational New Drug Application for TRV045.

About OLINVYK^® (oliceridine) injection

OLINVYK is a new chemical entity approved by the FDA in August 2020. OLINVYK contains oliceridine, an opioid, which is a Schedule II controlled substance with a high potential for abuse similar to other opioids. It is indicated in adults for the management of acute pain severe enough to require an intravenous opioid analgesic and for whom alternative treatments are inadequate. OLINVYK is available in 1 mg/1 mL and 2 mg/2 mL single-dose vials, and a 30 mg/30 mL single-patient-use vial for patient-controlled analgesia (PCA). Approved PCA doses are 0.35 mg and 0.5 mg and doses greater than 3 mg should not be administered. The cumulative daily dose should not exceed 27 mg. Please see Important Safety Information, including the BOXED WARNING, and full prescribing information at www.OLINVYK.com.

IMPORTANT SAFETY INFORMATION

WARNING: SERIOUS AND LIFE-THREATENING RISKS FROM USE

OF OLINVYK

Addiction, Abuse, and Misuse

Because the use of OLINVYK exposes patients and other users to the risks of opioid addiction, abuse, and misuse, which can lead to overdose and death, assess each patient’s risk prior to prescribing and reassess all patients regularly for the development of these behaviors and conditions.

Life-Threatening Respiratory Depression

Serious, life-threatening, or fatal respiratory depression may occur with use of OLINVYK, especially during initiation or following a dosage increase. To reduce the risk of respiratory depression, proper dosing and titration of OLINVYK are essential.

Risks From Concomitant Use With Benzodiazepines Or Other CNS Depressants

Concomitant use of opioids with benzodiazepines or other central nervous system (CNS) depressants, including alcohol, may result in profound sedation, respiratory depression, coma, and death. Reserve concomitant prescribing of OLINVYK and benzodiazepines or other CNS depressants for use in patients for whom alternative treatment options are inadequate.

Neonatal Opioid Withdrawal Syndrome

If opioid use is required for an extended period of time in a pregnant woman, advise the patient of the risk of NOWS, which may be life-threatening if not recognized and treated. Ensure that management by neonatology experts will be available at delivery.

INDICATIONS AND USAGE

OLINVYK is an opioid agonist indicated in adults for the management of acute pain severe enough to require an intravenous opioid analgesic and for whom alternative treatments are inadequate.

Limitations of Use

Because of the risks of addiction, abuse, and misuse with opioids, which can occur at any dosage or duration, reserve OLINVYK for use in patients for whom alternative treatment options [e.g., non-opioid analgesics or opioid combination products]:

Have not been tolerated or are not expected to be tolerated.
Have not provided adequate analgesia or are not expected to provide adequate analgesia.

The cumulative total daily dose should not exceed 27 mg.

CONTRAINDICATIONS

OLINVYK is contraindicated in patients with:

Significant respiratory depression
Acute or severe bronchial asthma in an unmonitored setting or in absence of resuscitative equipment
Known or suspected gastrointestinal obstruction, including paralytic ileus
Known hypersensitivity to oliceridine (e.g. anaphylaxis)

WARNINGS AND PRECAUTIONS

OLINVYK contains oliceridine, a Schedule II controlled substance, that exposes users to the risks of addiction, abuse, and misuse. Although the risk of addiction in any individual is unknown, it can occur in patients appropriately prescribed OLINVYK. Assess risk, counsel, and monitor all patients receiving opioids.
Serious, life-threatening respiratory depression has been reported with the use of opioids, even when used as recommended, especially in patients with chronic pulmonary disease, or in elderly, cachectic and debilitated patients. The risk is greatest during initiation of OLINVYK therapy, following a dose increase, or when used with other drugs that depress respiration. Proper dosing of OLINVYK is essential, especially when converting patients from another opioid product to avoid overdose. Management of respiratory depression may include close observation, supportive measures, and use of opioid antagonists, depending on the patient’s clinical status.
Opioids can cause sleep-related breathing disorders including central sleep apnea (CSA) and sleep-related hypoxemia with risk increasing in a dose-dependent fashion. In patients who present with CSA, consider decreasing the dose of opioid using best practices for opioid taper.
Profound sedation, respiratory depression, coma, and death may result from the concomitant use of OLINVYK with benzodiazepines and/or other CNS depressants (e.g., non-benzodiazepine sedatives/hypnotics, anxiolytics, tranquilizers, muscle relaxants, general anesthetics, antipsychotics, other opioids, or alcohol). Because of these risks, reserve concomitant prescribing of these drugs for use in patients for whom alternative treatment options are inadequate, prescribe the lowest effective dose, and minimize the duration.
Use of OLINVYK for an extended period of time during pregnancy can result in withdrawal in the neonate that may be life-threatening. Observe newborns for signs of neonatal opioid withdrawal syndrome and manage accordingly. Advise pregnant women using opioids for a prolonged period of the risk of neonatal opioid withdrawal syndrome and ensure that appropriate treatment will be available.
OLINVYK was shown to have mild QTc interval prolongation in thorough QT studies where patients were dosed up to 27 mg. Total cumulative daily doses exceeding 27 mg per day were not studied and may increase the risk for QTc interval prolongation. Therefore, the cumulative total daily dose of OLINVYK should not exceed 27 mg.
Increased plasma concentrations of OLINVYK may occur in patients with decreased Cytochrome P450 (CYP) 2D6 function or normal metabolizers taking moderate or strong CYP2D6 inhibitors; also in patients taking a moderate or strong CYP3A4 inhibitor, in patients with decreased CYP2D6 function who are also receiving a moderate or strong CYP3A4 inhibitor, or with discontinuation of a CYP3A4 inducer. These patients may require less frequent dosing and should be closely monitored for respiratory depression and sedation at frequent intervals. Concomitant use of OLINVYK with CYP3A4 inducers or discontinuation of a moderate or strong CYP3A4 inhibitor can lower the expected concentration, which may decrease efficacy, and may require supplemental doses.
Opioid-Induced Hyperalgesia (OIH) occurs when an opioid analgesic paradoxically causes an increase in pain, or an increase in sensitivity to pain. This differs from tolerance where increasing doses are required to maintain the desired effect. Symptoms of OIH include, but may not be limited to, increased levels of pain upon dose increase, decreased levels of pain upon dose decrease, or pain from ordinarily non-painful stimuli (allodynia). These symptoms may suggest OIH only if there is no evidence of disease progression, opioid tolerance, withdrawal, or addictive behavior. If OIH is suspected, carefully consider appropriately decreasing the dose of the current opioid analgesic or opioid rotation.
Cases of adrenal insufficiency have been reported with opioid use (usually greater than one month). Presentation and symptoms may be nonspecific and include nausea, vomiting, anorexia, fatigue, weakness, dizziness, and low blood pressure. If confirmed, treat with physiologic replacement doses of corticosteroids and wean patient from the opioid.
OLINVYK may cause severe hypotension, including orthostatic hypotension and syncope in ambulatory patients. There is increased risk in patients whose ability to maintain blood pressure has already been compromised by a reduced blood volume or concurrent administration of certain CNS depressant drugs (e.g., phenothiazines or general anesthetics). Monitor these patients for signs of hypotension. In patients with circulatory shock, avoid the use of OLINVYK as it may cause vasodilation that can further reduce cardiac output and blood pressure.
Avoid the use of OLINVYK in patients with impaired consciousness or coma. OLINVYK should be used with caution in patients who may be susceptible to the intracranial effects of CO₂ retention, such as those with evidence of increased intracranial pressure or brain tumors, as a reduction in respiratory drive and the resultant CO₂ retention can further increase intracranial pressure. Monitor such patients for signs of sedation and respiratory depression, particularly when initiating therapy.
As with all opioids, OLINVYK may cause spasm of the sphincter of Oddi, and may cause increases in serum amylase. Monitor patients with biliary tract disease, including acute pancreatitis, for worsening symptoms.
OLINVYK may increase the frequency of seizures in patients with seizure disorders and may increase the risk of seizures in vulnerable patients. Monitor patients with a history of seizure disorders for worsened seizure control.
Do not abruptly discontinue OLINVYK in a patient physically dependent on opioids. Gradually taper the dosage to avoid a withdrawal syndrome and return of pain. Avoid the use of mixed agonist/antagonist (e.g., pentazocine, nalbuphine, and butorphanol) or partial agonist (e.g., buprenorphine) analgesics in patients who are receiving OLINVYK, as they may reduce the analgesic effect and/or precipitate withdrawal symptoms.
OLINVYK may impair the mental or physical abilities needed to perform potentially hazardous activities such as driving a car or operating machinery.
Although self-administration of opioids by patient-controlled analgesia (PCA) may allow each patient to individually titrate to an acceptable level of analgesia, PCA administration has resulted in adverse outcomes and episodes of respiratory depression. Health care providers and family members monitoring patients receiving PCA analgesia should be instructed in the need for appropriate monitoring for excessive sedation, respiratory depression, or other adverse effects of opioid medications.

ADVERSE REACTIONS

Adverse reactions are described in greater detail in the Prescribing Information.

The most common (incidence ≥10%) adverse reactions in Phase 3 controlled clinical trials were nausea, vomiting, dizziness, headache, constipation, pruritus, and hypoxia.

MEDICAL INFORMATION

For medical inquiries or to report an adverse event, other safety-related information or product complaints for a company product, please contact the Trevena Medical Information Contact Center at 1-844-465-4686 or email MedInfo@Trevena.com.

You are encouraged to report suspected adverse events of prescription drugs to the FDA. Visit www.fda.gov/medwatch or call 1-800-FDA-1088.

PLEASE see www.OLINVYK.com for full prescribing information including BOXED warning and important safety information

Forward-Looking Statements

Any statements in this press release about future expectations, plans and prospects for the Company, including statements about the Company’s strategy, future operations, clinical development and trials of its therapeutic candidates, plans for potential future product candidates and other statements containing the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “suggest,” “target,” “potential,” “will,” “would,” “could,” “should,” “continue,” and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the expectations surrounding the continued advancement of the Company’s product pipeline; the potential safety and efficacy of the Company’s product candidates and their regulatory and clinical development; the Company’s intention to pursue strategic alternatives for OLINVYK and the ability of any such strategic alternative to provide shareholder value; the expected financial and operational impacts of the Company’s decision to reduce commercial support for OLINVYK; the status, timing, costs, results and interpretation of the Company’s clinical trials or any future trials of any of the Company’s investigational drug candidates; the uncertainties inherent in conducting clinical trials; expectations for regulatory interactions, submissions and approvals, including the Company’s assessment of discussions with FDA; available funding; uncertainties related to continued listing on NASDAQ; uncertainties related to the Company’s intellectual property; uncertainties related to other matters that could affect the availability or commercial potential of the Company’s therapeutic candidates and approved product; and other factors discussed in the Risk Factors set forth in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (SEC) and in other filings the Company makes with the SEC from time to time. In addition, the forward-looking statements included in this press release represent the Company’s views only as of the date hereof. The Company anticipates that subsequent events and developments may cause the Company’s views to change. However, while the Company may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so, except as may be required by law.

For more information, please contact:

Company Contact:

Bob Yoder
SVP, Chief Business Officer & Head of Commercial Operations
Trevena, Inc.
(610) 354-8840

TREVENA, INC.
Condensed Statements of Operations
(Unaudited, in thousands except share and per share data)

	Three Months Ended Sept 30,						Nine Months Ended Sept 30,
		2024			2023			2024			2023

Product revenue	$	(21	)	$	1		$	13		$	28
License revenue		304			179			615			3,179
Total revenue		283			180			628			3,207

Operating expenses:
Cost of goods sold		114			175			305			389
Selling, general and administrative		3,880			4,572			13,323			15,799
Research and development		1,866			4,260			8,958			12,160
Total operating expenses		5,860			9,007			22,586			28,348
Loss from operations		(5,577	)		(8,827	)		(21,958	)		(25,141	)
Other income		638			897			4,450			1,380
Net loss	$	(4,939	)	$	(7,930	)	$	(17,508	)	$	(23,761	)

Per share information:
Net loss per share of common stock, basic and diluted	($5.79		)	($14.20		)	($20.54		)	($50.65		)
Weighted average shares outstanding, basic and diluted		852,801			558,564			852,253			469,149

TREVENA, INC.
Condensed Balance Sheets
(Unaudited, in thousands)

	September 30, 2024			December 31, 2023
Assets
Current assets:
Cash and cash equivalents	$	13,462		$	32,975
Restricted cash		282			–
Prepaid expenses and other current assets		991			2,230
Total current assets		14,735			35,205
Restricted cash, net of current portion		340			540
Property and equipment, net		923			1,195
Right-of-use lease assets		3,190			3,665
Total assets	$	19,188		$	40,605

Liabilities and stockholders’ (deficit) equity
Current liabilities:
Accounts payable, net	$	918		$	2,303
Accrued expenses and other current liabilities		3,164			4,239
Current portion of loans payable, net		902			–
Lease liabilities		1,102			1,012
Total current liabilities		6,086			7,554
Loans payable, net		31,972			30,809
Leases, net of current portion		3,588			4,424
Warrant liability		851			5,475
Total liabilities		42,497			48,262

Common stock		1			1
Additional paid-in capital		582,259			580,403
Accumulated deficit		(605,569	)		(588,061	)
Total stockholders’ (deficit) equity		(23,309	)		(7,657	)
Total liabilities and stockholders’ (deficit) equity	$	19,188		$	40,605

Markets News

Lysander Funds Limited Wins Multiple 2024 LSEG Lipper Fund Awards

07.11.2024 by admin

TORONTO, Nov. 7, 2024 /CNW/ – Lysander Funds Limited (“Lysander”) was recognized at the LSEG Lipper Fund Awards Canada 2024 last night with four individual fund awards.

“Lysander is proud to be recognized again at the LSEG Lipper Fund Awards Canada in 2024.” said Richard Usher-Jones, President of Lysander. “Our team and Portfolio Managers will continue our efforts to deliver investment results and high-quality service for our advisors and their clients.”

The annual LSEG Lipper Fund Awards honour funds and fund management firms that have excelled in providing consistently strong risk-adjusted performance relative to their peers.

The following Lysander Funds were named LSEG Lipper Fund Awards Canada 2024 Winners:

Best Global Corporate Fixed Income Fund Over Three and Five Years – Lysander-Canso U.S. Corporate Value Bond Fund (USD) – Series F
Best Canadian Short Term Fixed Income Fund Over Ten Years – Lysander-Canso Short Term and Floating Rate Fund – Series F
Best Canadian Dividend & Income Equity Fund Over Three Years – Lysander-Crusader Equity Income Fund – Series F

For more information, please visit https://www.lysanderfunds.com/awards/

About Lysander Funds Limited

Lysander is an independently owned investment fund manager partnered with experienced and independent Portfolio Managers to offer focused investment strategies for Canadian investors.

Our goal at Lysander is to increase the wealth of all Canadians and to empower advisors and investors with insights and expertise to make wise investment decisions.

Lysander-Canso U.S. Corporate Value Bond Fund (USD) (Series F) was named Best Global Corporate Fixed Income Fund for: (i) 3 years ending July 31, 2024, out of a classification total of 18 funds (3 years) and (ii) 5 years ending July 31, 2024, out of a classification total of 17 funds (5 years). The corresponding LSEG Lipper Leader for Consistent Return ratings of the fund for the period ended July 31, 2024 were: N/A (1 year), 5 (3 years), and 5 (5 years). Performance for the fund (Series F) for the period ended September 30, 2024 was 10.0% (1 year), 3.0% (3 years), 7.9% (5 years) and 5.3% (since inception – Dec 30, 2014).

Lysander-Canso Short Term and Floating Rate Fund (Series F) was named Best Canadian Short Term Fixed Income Fund for 10 years ending July 31, 2024, out of a classification total of 34 funds (10 years). The corresponding LSEG Lipper Leader for Consistent Return ratings of the fund for the period ended July 31, 2024 were: N/A (1 year), 5 (3 years), and 5 (5 years) and 5 (10 years). Performance for the fund (Series F) for the period ended September 30, 2024 was 9.2% (1 year), 3.0% (3 years), 3.6% (5 years) and 2.9% (10 years).

Lysander-Crusader Equity Income Fund (Series F) was named Best Canadian Dividend & Income Equity Fund for 3 years ending July 31, 2024, out of a classification total of 58 funds (3 years). The corresponding LSEG Lipper Leader for Consistent Return ratings of the fund for the period ended July 31, 2024 were: N/A (1 year), 5 (3 years), 1 (5 years). Performance for the fund (Series F) for the period ended September 30, 2024 was 32.0% (1 year), 17.5% (3 years), 8.3% (5 years) and 4.4% (since inception – Dec 30, 2014).

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. The indicated rates of return are historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.

The LSEG Lipper Fund Awards Canada, granted annually, highlight funds and fund companies that have excelled in delivering consistently strong risk-adjusted performance relative to their peers. The LSEG Lipper Fund Awards are based on the Lipper Leader for Consistent Return rating, which is an objective, quantitative, risk-adjusted performance measure calculated over 36, 60 and 120 months. The fund with the highest Lipper Leader for Consistent Return (Effective Return) value in each eligible classification wins the LSEG Lipper Fund Award. For more information, see lipperfundawards.com. Although LSEG Lipper makes reasonable efforts to ensure the accuracy and reliability of the data used to calculate the awards, their accuracy is not guaranteed. Note: The Lipper Leader Ratings for each fund are subject to change every month.

®Lysander Funds is a registered trademark of Lysander Funds Limited.

SOURCE Lysander Funds Limited

View original content: http://www.newswire.ca/en/releases/archive/November2024/07/c2303.html

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Boeing, Airbus Might Secure A $4B Jet Order From Taiwan's China Airlines As Trump Secures Second Term: Report

07.11.2024 by admin

Taiwan’s China Airlines is reportedly on the verge of splitting a substantial order for long-haul passenger jets between Boeing Co. BA and Airbus SE EADSY. This decision aligns with the recent U.S. presidential election outcome, where Republican Donald Trump reclaimed the presidency.

What Happened: The airline is evaluating Boeing’s 777X and Airbus’s A350-1000 models to replace its existing fleet of 10 Boeing 777-300ERs. The order could encompass up to 20 passenger jets, potentially divided equally between the two manufacturers. The decision on freighters remains uncertain, influenced by the political climate post-U.S. elections, Reuters reported on Thursday.

The estimated value of this passenger jet order is approximately $4 billion, considering standard industry discounts, as reported by aviation consultancy Cirium Ascend. The airline’s board is yet to finalize the decision, with no confirmation on the exact number and types of planes involved.

China Airlines, primarily owned by the Taiwan government, previously ordered 16 Boeing 787-9s in 2022. Despite past concerns, Taiwan’s government remains optimistic about maintaining robust relations with the U.S. under Trump’s leadership. The airline’s chairman, Hsieh Shih-chien, stressed that fleet decisions are made independently of political influence.

Why It Matters: The aerospace industry has been under scrutiny, with companies like Boeing and Airbus facing questions about their high valuations. Defense and aerospace stocks have shown a remarkable 22% return year-to-date, driven by geopolitical tensions.

Additionally, Boeing’s recent labor agreement ended a seven-week strike, securing significant pay increases for workers, which could impact production costs. Meanwhile, Airbus’s recent orders highlight its strong market position, with 85 new orders reported in September.

Read Next:

Image via Shutterstock

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari

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Earnings News

Appian Announces Third Quarter 2024 Financial Results

07.11.2024 by admin

MCLEAN, Va., Nov. 07, 2024 (GLOBE NEWSWIRE) — Appian APPN today announced financial results for the third quarter ended September 30, 2024.

“Appian continues to grow even as we become more efficient. Growth remains our top priority. We now project positive adjusted EBITDA for the full year 2024,” said Matt Calkins, CEO & Founder.

Third Quarter 2024 Financial Highlights:

Revenue: Cloud subscription revenue was $94.1 million, up 22% compared to the third quarter of 2023. Total subscriptions revenue, which includes sales of our cloud subscriptions, on-premises term license subscriptions, and maintenance and support, increased 19% year-over-year to $123.1 million. Professional services revenue was $30.9 million, a decrease of 7% compared to the third quarter of 2023. Total revenue was $154.1 million, up 12% compared to the third quarter of 2023. Cloud subscription revenue retention rate was 117% as of September 30, 2024.
Operating loss and non-GAAP operating income and loss: GAAP operating loss was $(7.2) million, compared to $(15.2) million for the third quarter of 2023. Non-GAAP operating income was $8.3 million, compared to non-GAAP operating loss of $(7.7) million for the third quarter of 2023.
Net loss and non-GAAP net income and loss: GAAP net loss was $(2.1) million, compared to $(22.3) million for the third quarter of 2023. GAAP net loss per share was $(0.03) for the third quarter of 2024, compared to $(0.30) for the third quarter of 2023. Non-GAAP net income was $11.4 million, compared to non-GAAP net loss of $(14.6) million for the third quarter of 2023. Non-GAAP diluted net income per share was $0.15, compared to $(0.20) net loss per share for the third quarter of 2023. GAAP net loss and non-GAAP net income for the third quarter of 2024 included $9.2 million of foreign currency exchange gains. GAAP and non-GAAP net loss for the third quarter of 2023 included $4.3 million of foreign currency exchange losses. We do not forecast foreign exchange rate movements.
Adjusted EBITDA: Adjusted EBITDA was $10.8 million, compared to adjusted EBITDA loss of $(5.3) million for the third quarter of 2023.
Balance sheet and cash flows: As of September 30, 2024, Appian had total cash, cash equivalents, and investments of $140.0 million. Net cash used by operating activities was $(8.2) million for the three months ended September 30, 2024, compared to $(65.0) million of net cash used by operating activities for the same period in 2023.

A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables following the financial statements in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

Recent Business Highlights:

Financial Outlook:

As of November 7, 2024, guidance for 2024 is as follows:

Fourth Quarter 2024 Guidance:
- Cloud subscription revenue is expected to be between $95.0 million and $97.0 million, representing year-over-year growth of 14% to 17%.
- Total revenue is expected to be between $163.5 million and $165.5 million, representing a year-over-year increase of 13% to 14%.
- Adjusted EBITDA is expected to be between $6.0 million and $8.0 million.
- Non-GAAP net loss per share is expected to be between $(0.03) and breakeven, assuming weighted average common shares outstanding of 74.0 million.
Full Year 2024 Guidance:
- Cloud subscription revenue is expected to be between $364.0 million and $366.0 million, representing year-over-year growth of 20%.
- Total revenue is expected to be between $613.0 million and $615.0 million, representing a year-over-year increase of 12% to 13%.
- Adjusted EBITDA is expected to be between $5.0 million and $7.0 million.
- Non-GAAP net loss per share is expected to be between $(0.38) and $(0.35), assuming weighted average common shares outstanding of 73.0 million.

Conference Call Details:

Appian will host a conference call today, November 7, 2024, at 8:30 a.m. ET to discuss Appian’s financial results for the third quarter ended September 30, 2024 and business outlook.

To access the call, navigate to the following link⁽¹⁾. Once registered, participants can dial in using their phone with a dial in and PIN, or they can choose the Call Me option for instant dial to their phone. The live webcast of the conference call can also be accessed on the Investor Relations page of our website at https://investors.appian.com.

About Appian

Appian is a software company that orchestrates business processes. The Appian Platform empowers leaders to design, automate, and optimize important processes from start to finish. With our industry-leading platform and commitment to customer success, Appian is trusted by top organizations to drive transformational process change. For more information, visit appian.com. APPN

_{¹ https://register.vevent.com/register/BI4a3543c2295f4f5085f10a575f9a8298}

Non-GAAP Financial Measures

To supplement its consolidated financial statements, which are prepared and presented in accordance with GAAP, Appian provides investors with certain non-GAAP financial performance measures. Appian uses these non-GAAP financial performance measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Appian’s management believes these non-GAAP financial measures provide meaningful supplemental information regarding Appian’s performance by excluding certain expenses that may not be indicative of our recurring core business operating results. Appian believes both management and investors benefit from referring to these non-GAAP financial measures in assessing Appian’s performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to historical performance as well as comparisons to competitors’ operating results. Appian believes these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to measures used by management in its financial and operational decision-making and (2) they are used by Appian’s institutional investors and the analyst community to help them analyze the health of Appian’s business.

The non-GAAP financial performance measures include the following: non-GAAP subscriptions cost of revenue, non-GAAP professional services cost of revenue, non-GAAP total cost of revenue, non-GAAP total operating expense, non-GAAP operating loss, non-GAAP income tax expense, non-GAAP net income (loss), and non-GAAP net income (loss) per share, basic and diluted. These non-GAAP financial performance measures exclude the effect of stock-based compensation expense, certain non-ordinary litigation-related expenses consisting of legal and other professional fees associated with the Pegasystems cases (net of insurance reimbursements), or Litigation Expense, amortization of the judgement preservation insurance policy, or JPI Amortization, severance costs related to involuntary reductions in our workforce, or Severance Costs, lease impairment and lease-related charges associated with actions taken to reduce the footprint of our leased office spaces, or Lease Impairment and Lease-Related Charges, and a short-swing profit disgorgement paid to us by an investor, or Short-Swing Profit Payment. While some of these items may be recurring in nature and should not be disregarded in the evaluation of our earnings performance, it is useful to exclude such items when analyzing current results and trends compared to other periods as these items can vary significantly from period to period depending on specific underlying transactions or events that may occur. Therefore, while we may incur or recognize these types of expenses in the future, we believe removing these items for purposes of calculating our non-GAAP financial measures provides investors with a more focused presentation of our ongoing operating performance.

Appian also discusses adjusted EBITDA, a non-GAAP financial performance measure it believes offers a useful view of the overall operation of its businesses. The company defines adjusted EBITDA as net loss before (1) other (income) expense, net, (2) interest expense, (3) income tax expense, (4) depreciation expense and amortization of intangible assets, (5) stock-based compensation expense, (6) Litigation Expense, (7) JPI Amortization, (8) Severance Costs, and (9) Lease Impairment and Lease-Related Charges. The most directly comparable GAAP financial measure to adjusted EBITDA is net loss. Users should consider the limitations of using adjusted EBITDA, including the fact this measure does not provide a complete measure of our operating performance. Adjusted EBITDA is not intended to purport to be an alternative to net loss as a measure of operating performance or to cash flows from operating activities as a measure of liquidity.

The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, as a substitute for, or superior to the financial information prepared and presented in accordance with GAAP, and Appian’s non-GAAP measures may be different from non-GAAP measures used by other companies. For more information on these non-GAAP financial measures, see the reconciliation of these non-GAAP financial measures to their nearest comparable GAAP measures at the end of this press release. Appian provides guidance ranges for non-GAAP net loss per share and adjusted EBITDA; however, we are not able to reconcile these amounts to their comparable GAAP financial measures without unreasonable efforts because certain information necessary to calculate such measures on a GAAP basis is unavailable, subject to high variability, dependent on future events outside of our control, and cannot be predicted. In addition, Appian believes such reconciliations could imply a degree of precision that might be confusing or misleading to investors. The actual effect of the reconciling items that Appian may exclude from these non-GAAP expense numbers, when determined, may be significant to the calculation of the comparable GAAP measures.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than statements of historical facts, including statements regarding Appian’s future financial and business performance for the fourth quarter and full year 2024, future investment by Appian in its go-to-market initiatives, increased demand for the Appian Platform, market opportunity and plans and objectives for future operations, including Appian’s ability to drive continued subscriptions revenue and total revenue growth, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “estimate,” “expect,” “intend,” “may,” “will,” “plan,” and similar expressions are intended to identify forward-looking statements. Appian has based these forward-looking statements on its current expectations and projections about future events and financial trends that Appian believes may affect its financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks and uncertainties, including the risks and uncertainties associated with Appian’s ability to grow its business and manage its growth, Appian’s ability to sustain its revenue growth rate, continued market acceptance of Appian’s Platform and adoption of low-code solutions to drive digital transformation, the fluctuation of Appian’s operating results due to the length and variability of its sales cycle, competition in the markets in which Appian operates, AI being a disruptive set of technologies that may affect the markets for Appian’s software dramatically and in unpredictable ways, risks and uncertainties associated with the composition and concentration of Appian’s customer base and their demand for its platform and satisfaction with the services provided by Appian, Appian’s ability to operate in compliance with applicable laws and regulations, Appian’s strategic relationships with third parties, and additional risks and uncertainties set forth in the “Risk Factors” section of Appian’s most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and other filings with the Securities and Exchange Commission. Moreover, Appian operates in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for Appian’s management to predict all risks nor can Appian assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements Appian may make. In light of these risks, uncertainties, and assumptions, Appian cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. Appian is under no duty to update any of these forward-looking statements after the date of this press release to conform these statements to actual results or revised expectations, except as required by law.

Investor Relations
Jack Andrews
703-442-8844
investors@appian.com

Media Contact
Valerie Verlander
703-260-7947
valerie.verlander@appian.com

APPIAN CORPORATION CONSOLIDATED BALANCE SHEETS (in thousands, except par value and share data)

	As of
	September 30, 2024			December 31, 2023
	(unaudited)
Assets
Current assets
Cash and cash equivalents	$	99,193		$	149,351
Short-term investments and marketable securities		40,798			9,653
Accounts receivable, net of allowances of $2,850 and $2,606, respectively		140,213			171,561
Deferred commissions, current		34,785			34,261
Prepaid expenses and other current assets		45,483			49,529
Total current assets		360,472			414,355
Property and equipment, net of accumulated depreciation of $30,329 and $25,141, respectively		39,190			42,682
Goodwill		27,462			27,106
Intangible assets, net of accumulated amortization of $5,356 and $4,152, respectively		2,790			3,889
Right-of-use assets for operating leases		32,231			39,975
Deferred commissions, net of current portion		54,576			59,764
Deferred tax assets		4,827			3,453
Other assets		28,365			36,279
Total assets	$	549,913		$	627,503
Liabilities and Stockholders’ (Deficit) Equity
Current liabilities
Accounts payable	$	6,928		$	6,174
Accrued expenses		11,310			11,046
Accrued compensation and related benefits		31,171			38,003
Deferred revenue		224,199			235,992
Debt		9,598			66,368
Operating lease liabilities		12,470			11,698
Other current liabilities		2,798			1,891
Total current liabilities		298,474			371,172
Long-term debt		243,225			140,221
Non-current operating lease liabilities		54,270			59,067
Deferred revenue, non-current		3,370			4,700
Deferred tax liabilities		—			2
Other non-current liabilities		375			—
Total liabilities		599,714			575,162
Stockholders’ (deficit) equity
Class A common stock—par value $0.0001; 500,000,000 shares authorized as of September 30, 2024 and December 31, 2023 and 42,361,024 and 42,169,970 shares issued of September 30, 2024 and December 31, 2023, respectively		4			4
Class B common stock—par value $0.0001; 100,000,000 shares authorized as of September 30, 2024 and December 31, 2023 and 31,195,739 and 31,196,796 shares issued as of September 30, 2024 and December 31, 2023, respectively		3			3
Additional paid-in capital		614,204			595,781
Accumulated other comprehensive loss		(22,809	)		(23,555	)
Accumulated deficit		(598,507	)		(519,892	)
Treasury stock at cost, 1,127,138 shares as of September 30, 2024		(42,696	)		—
Total stockholders’ (deficit) equity		(49,801	)		52,341
Total liabilities and stockholders’ (deficit) equity	$	549,913		$	627,503

APPIAN CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data)

	Three Months Ended September 30, 2024						Nine Months Ended September 30, 2024
		2024			2023			2024			2023
	(unaudited)
Revenue
Subscriptions	$	123,121		$	103,803		$	353,789		$	296,554
Professional services		30,931			33,291			96,548			103,490
Total revenue		154,052			137,094			450,337			400,044
Cost of revenue
Subscriptions		14,082			11,265			39,614			32,492
Professional services		23,002			24,804			74,880			76,515
Total cost of revenue		37,084			36,069			114,494			109,007
Gross profit		116,968			101,025			335,843			291,037
Operating expenses
Sales and marketing		50,865			55,667			175,613			181,338
Research and development		38,572			37,135			117,789			118,502
General and administrative		34,688			23,440			108,327			82,342
Total operating expenses		124,125			116,242			401,729			382,182
Operating loss		(7,157	)		(15,217	)		(65,886	)		(91,145	)
Other non-operating (income) expense
Other (income) expense, net		(12,544	)		1,939			(5,882	)		(4,637	)
Interest expense		6,168			4,917			17,921			12,790
Total other non-operating (income) expense		(6,376	)		6,856			12,039			8,153
Loss before income taxes		(781	)		(22,073	)		(77,925	)		(99,298	)
Income tax expense		1,319			178			690			2,137
Net loss	$	(2,100	)	$	(22,251	)	$	(78,615	)	$	(101,435	)
Net loss per share:
Basic and diluted	$	(0.03	)	$	(0.30	)	$	(1.08	)	$	(1.39	)
Weighted average common shares outstanding:
Basic and diluted		72,396			73,178			72,664			73,032

APPIAN CORPORATION STOCK-BASED COMPENSATION EXPENSE (in thousands)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(unaudited)
Cost of revenue
Subscriptions	$	211	$	211	$	641	$	713
Professional services		1,325		1,535		4,364		4,598
Operating expenses
Sales and marketing		1,746		3,245		6,270		8,462
Research and development		2,939		2,930		8,859		9,466
General and administrative		3,284		3,090		9,877		9,976
Total stock-based compensation expense	$	9,505	$	11,011	$	30,011	$	33,215

APPIAN CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in thousands)

	Nine Months Ended September 30,
		2024			2023
Cash flows from operating activities
Net loss	$	(78,615	)	$	(101,435	)
Adjustments to reconcile net loss to net cash used by operating activities
Stock-based compensation		30,011			33,215
Depreciation expense and amortization of intangible assets		7,503			7,046
Lease impairment charges		5,462			—
Bad debt expense		619			690
Amortization of debt issuance costs		439			342
Benefit for deferred income taxes		(1,281	)		(808	)
Foreign currency transaction losses, net		2,895			—
Changes in assets and liabilities
Accounts receivable		30,859			30,665
Prepaid expenses and other assets		12,279			(61,555	)
Deferred commissions		4,665			(56	)
Accounts payable and accrued expenses		1,495			(657	)
Accrued compensation and related benefits		(6,975	)		(6,671	)
Other current and non-current liabilities		535			(2,026	)
Deferred revenue		(15,096	)		(3,186	)
Operating lease assets and liabilities		(1,788	)		2,238
Net cash used by operating activities		(6,993	)		(102,198	)
Cash flows from investing activities
Proceeds from maturities of investments		11,631			62,590
Payments for investments		(42,638	)		(53,443	)
Purchases of property and equipment		(3,287	)		(8,278	)
Net cash (used by) provided by investing activities		(34,294	)		869
Cash flows from financing activities
Proceeds from borrowings		50,000			92,000
Payments for debt issuance costs		(463	)		(411	)
Debt repayments		(3,750	)		(2,625	)
Repurchase of common stock		(50,019	)		—
Payments for employee taxes related to the net share settlement of equity awards		(4,883	)		(7,240	)
Proceeds from exercise of common stock options		619			664
Net cash (used by) provided by financing activities		(8,496	)		82,388
Effect of foreign exchange rate changes on cash and cash equivalents		(375	)		(679	)
Net decrease in cash and cash equivalents		(50,158	)		(19,620	)
Cash, cash equivalents and restricted cash at beginning of period	$	149,351		$	150,381
Cash and cash equivalents at end of period	$	99,193		$	130,761

Supplemental disclosure of cash flow information
Cash paid for interest	$	17,193		$	11,960
Cash paid for income taxes	$	1,925		$	2,944
Supplemental disclosure of non-cash investing and financing activities
Accrued capital expenditures	$	109		$	27

APPIAN CORPORATION RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES (unaudited, in thousands, except per share data)

	GAAP Measure			Stock-Based Compensation			Litigation Expense			JPI Amortization			Severance Costs			Lease Impairment and Lease-Related Charges			Short-Swing Profit Payment			Non-GAAP Measure
Three Months Ended September 30, 2024
Subscriptions cost of revenue	$	14,082		$	(211	)	$	—		$	—		$	—		$	—		$	—		$	13,871
Professional services cost of revenue		23,002			(1,325	)		—			—			—			—			—			21,677
Total cost of revenue		37,084			(1,536	)		—			—			—			—			—			35,548
Total operating expense		124,125			(7,969	)		(1,979	)		(3,635	)		—			(324	)		—			110,218
Operating (loss) income		(7,157	)		9,505			1,979			3,635			—			324			—			8,286
Income tax expense		1,319			117			—			—			—			—			—			1,436
Net (loss) income		(2,100	)		9,388			1,979			3,635			—			324			(1,799	)		11,427
Net (loss) income per share, basic	$	(0.03	)	$	0.13		$	0.03		$	0.05		$	—		$	—		$	(0.02	)	$	0.16
Net (loss) income per share, diluted^(a^,b⁾	$	(0.03	)	$	0.13		$	0.03		$	0.05		$	—		$	—		$	(0.02	)	$	0.15

Nine Months Ended September 30, 2024
Subscriptions cost of revenue	$	39,614		$	(641	)	$	—		$	—		$	—		$	—		$	—		$	38,973
Professional services cost of revenue		74,880			(4,364	)		—			—			(1,398	)		—			—			69,118
Total cost of revenue		114,494			(5,005	)		—			—			(1,398	)		—			—			108,091
Total operating expense		401,729			(25,006	)		(3,442	)		(12,643	)		(4,136	)		(5,786	)		—			350,716
Operating (loss) income		(65,886	)		30,011			3,442			12,643			5,534			5,786			—			(8,470	)
Income tax expense		690			1,258			—			—			1,096			—			—			3,044
Net (loss) income		(78,615	)		28,753			3,442			12,643			4,438			5,786			(1,799	)		(25,352	)
Net (loss) income per share, basic and diluted⁽^b⁾	$	(1.08	)	$	0.40		$	0.05		$	0.17		$	0.06		$	0.08		$	(0.02	)	$	(0.35	)

^(a)Accounts for the impact of 1.8 million shares of dilutive securities resulting in total diluted shares of 74.2 million.
⁽^b⁾ Per share amounts do not foot due to rounding.

	GAAP Measure			Stock-Based Compensation			Litigation Expense			JPI Amortization			Severance Costs			Non-GAAP Measure
Three Months Ended September 30, 2023
Subscriptions cost of revenue	$	11,265		$	(211	)	$	—		$	—		$	—		$	11,054
Professional services cost of revenue		24,804			(1,535	)		—			—			—			23,269
Total cost of revenue		36,069			(1,746	)		—			—			—			34,323
Total operating expense		116,242			(9,265	)		4,961			(1,485	)		—			110,453
Operating (loss) income		(15,217	)		11,011			(4,961	)		1,485			—			(7,682	)
Income tax expense		178			88			—			—			—			266
Net (loss) income		(22,251	)		11,099			(4,961	)		1,485			—			(14,628	)
Net (loss) income per share, basic and diluted	$	(0.30	)	$	0.15		$	(0.07	)	$	0.02		$	—		$	(0.20	)

Nine Months Ended September 30, 2023
Subscriptions cost of revenue	$	32,492		$	(713	)	$	—		$	—		$	(30	)	$	31,749
Professional services cost of revenue		76,515			(4,598	)		—			—			(158	)		71,759
Total cost of revenue		109,007			(5,311	)		—			—			(188	)		103,508
Total operating expense		382,182			(27,904	)		2,772			(1,485	)		(6,111	)		349,454
Operating (loss) income		(91,145	)		33,215			(2,772	)		1,485			6,299			(52,918	)
Income tax expense		2,137			731			—			—			139			3,007
Net (loss) income		(101,435	)		33,946			(2,772	)		1,485			6,438			(62,338	)
Net (loss) income per share, basic and diluted^(a)	$	(1.39	)	$	0.46		$	(0.04	)	$	0.02		$	0.09		$	(0.86	)

^(a) Per share amounts do not foot due to rounding.

	Three Months Ended September 30,						Nine Months Ended September 30,
		2024			2023			2024			2023
Reconciliation of adjusted EBITDA:
GAAP net loss	$	(2,100	)	$	(22,251	)	$	(78,615	)	$	(101,435	)
Other (income) expense, net		(12,544	)		1,939			(5,882	)		(4,637	)
Interest expense		6,168			4,917			17,921			12,790
Income tax expense		1,319			178			690			2,137
Depreciation expense and amortization of intangible assets		2,562			2,340			7,503			7,046
Stock-based compensation expense		9,505			11,011			30,011			33,215
Litigation Expense		1,979			(4,961	)		3,442			(2,772	)
JPI Amortization		3,635			1,485			12,643			1,485
Severance Costs		—			—			5,534			6,299
Lease Impairment and Lease-Related Charges		324			—			5,786			—
Adjusted EBITDA	$	10,848		$	(5,342	)	$	(967	)	$	(45,872	)

News Real estate

JLL Reports Financial Results for Third-Quarter 2024

07.11.2024 by admin

Double-digit revenue growth, coupled with ongoing cost discipline, drove strong bottom-line performance

CHICAGO, Nov. 6, 2024 /PRNewswire/ — Jones Lang LaSalle Incorporated JLL today reported operating performance for the third quarter of 2024. Transactional⁶ revenue growth accelerated to double digits and complemented continued momentum in Resilient⁶ business line revenues. Diluted earnings per share were $3.20, up from $1.23 last year; adjusted diluted earnings per share¹ were $3.50, up from $2.19.

Third-quarter revenue was $5.9 billion, up 15% in local currency¹
Resilient⁶ revenues grew 16% in local currency and Transactional⁶ revenues were up 11% in local currency
- Leasing, within Markets Advisory, increased 21% with broad-based geographic and asset class growth led by U.S. office
- Capital Markets delivered 14% growth as momentum grew in investment sales and debt/equity advisory
- Work Dynamics extended its growth momentum, highlighted by a 20% increase in Workplace Management
Continued profitability improvement led by Transactional⁶ revenue growth and the combination of cost discipline and platform leverage
JLL enhanced digital leasing capabilities, closing on the acquisition of Raise Commercial Real Estate in mid-October

“JLL achieved strong third-quarter revenue and profit growth fueled by continued high demand for our outsourcing services and an acceleration in transactional activity,” said Christian Ulbrich, JLL CEO. “Amidst a dynamic macro backdrop, our combination of data insights, talented people, and investments in our platform and technology is enhancing the way we work, delivering innovative capabilities our clients value. We are excited by significant opportunities in front of us and expect to continue to capitalize on them, driving meaningful and increasingly resilient top and bottom-line growth, financial returns, and cash flow generation.”

Summary Financial Results ($ in millions, except per share data, “LC” = local currency)	Three Months Ended September 30,				Nine Months Ended September 30,
	2024	2023	% Change in USD	% Change in LC	2024	2023	% Change in USD	% Change in LC

Revenue	$ 5,868.8	$ 5,111.4	15 %	15 %	$ 16,622.0	$ 14,879.4	12 %	12 %

Net income attributable to common shareholders	$ 155.1	$ 59.7	160 %	161 %	$ 305.6	$ 53.0	477 %	492 %
Adjusted net income attributable to common shareholders¹	170.0	106.3	60	60	379.2	242.7	56	60

Diluted earnings per share	$ 3.20	$ 1.23	160 %	160 %	$ 6.32	$ 1.10	475 %	492 %
Adjusted diluted earnings per share¹	3.50	2.19	60	60	7.84	5.02	56	59

Adjusted EBITDA¹	$ 298.1	$ 217.3	37 %	37 %	$ 731.5	$ 555.3	32 %	33 %

Cash flows from operating activities	$ 261.6	$ 325.7	(20) %	n/a	$ (142.0)	$ (153.6)	8 %	n/a
Free Cash Flow⁵	216.7	276.2	(22) %	n/a	(268.3)	(291.3)	8 %	n/a


Note:	For discussion and reconciliation of non-GAAP financial measures, see the Notes following the Financial Statements in this news release.

Consolidated Third-Quarter 2024 Performance Highlights:

Consolidated ($ in millions, “LC” = local currency)	Three Months Ended September 30,		% Change in USD	% Change in LC	Nine Months Ended September 30,		% Change in USD	% Change in LC
Consolidated ($ in millions, “LC” = local currency)	2024	2023	% Change in USD	% Change in LC	2024	2023	% Change in USD	% Change in LC
Markets Advisory	$ 1,143.8	$ 992.4	15 %	15 %	$ 3,172.7	$ 2,924.2	8 %	9 %
Capital Markets	498.8	435.8	14	14	1,334.0	1,240.9	8	8
Work Dynamics	4,068.2	3,514.2	16	16	11,641.0	10,165.0	15	15
JLL Technologies	56.7	58.9	(4)	(4)	167.0	180.9	(8)	(8)
LaSalle	101.3	110.1	(8)	(8)	307.3	368.4	(17)	(16)
Total revenue	$ 5,868.8	$ 5,111.4	15 %	15 %	$ 16,622.0	$ 14,879.4	12 %	12 %
Gross contract costs⁵	$ 3,861.8	$ 3,327.1	16 %	16 %	$ 11,107.9	$ 9,666.2	15 %	15 %
Platform operating expenses	1,787.5	1,633.6	9	9	5,014.8	4,848.0	3	3
Restructuring and acquisition charges⁴	(8.8)	31.6	(128)	(128)	4.4	79.1	(94)	(95)
Total operating expenses	$ 5,640.5	$ 4,992.3	13 %	13 %	$ 16,127.1	$ 14,593.3	11 %	11 %
Net non-cash MSR and mortgage banking derivative activity¹	$ (5.1)	$ (7.1)	28 %	29 %	$ (25.9)	$ (9.5)	(173) %	(172) %
Adjusted EBITDA¹	$ 298.1	$ 217.3	37 %	37 %	$ 731.5	$ 555.3	32 %	33 %

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.

Revenue

Revenue increased 15% compared with the prior-year quarter.

The collective 11% increase in Transactional⁶ revenue was led by Leasing, within Markets Advisory, up 21%, and Investment Sales, Debt/Equity Advisory and Other, within Capital Markets, up 18% excluding the impact of non-cash MSR and mortgage banking derivative activity.

Several businesses with Resilient⁶ revenues continued to deliver strong revenue growth, collectively up 16%, highlighted by Workplace Management, within Work Dynamics, up 20%, and Property Management, within Markets Advisory, up 8%. Growth in these businesses outpaced declines in LaSalle Advisory Fees, down 10%, and JLL Technologies, down 4%.

Refer to segment performance highlights for additional detail.

The following chart reflects the year-over-year change in revenue for each of the trailing eight quarters (QTD revenues, on a local currency basis). The chart shows the change in Transactional, Resilient and total revenue.

Net income and Adjusted EBITDA

Net income attributable to common shareholders for the third quarter was $155.1 million, compared with $59.7 million in 2023, and Adjusted EBITDA was $298.1 million, compared with $217.3 million last year.

Diluted earnings per share for the third quarter were $3.20 compared with $1.23 in the prior year. The $40.4 million change in Restructuring and acquisition charges, which are excluded from adjusted measures, reflected (i) an expense credit in the current quarter associated with a lower expected earn-out payout related to a 2021 U.S. property management joint venture as well as (ii) lower employment-related costs given the significant cost-out actions in 2023. Adjusted diluted earnings per share were $3.50 for the third quarter compared with $2.19 in 2023. The effective tax rates for the third quarters of 2024 and 2023 were 19.5% and 19.6%, respectively.

The growth in consolidated profit was primarily attributable to (i) higher revenues, both Transactional and certain Resilient revenues, including Workplace Management within Work Dynamics, and (ii) cost discipline and enhanced leverage of the company’s platform. These drivers notably outpaced the timing of revenue-related expense accruals in Work Dynamics and lower contributions from LaSalle. Refer to the segment performance highlights for additional detail.

Net income attributable to common shareholders was $305.6 million for the nine months ended September 30, 2024, compared with income of $53.0 million last year, and Adjusted EBITDA was $731.5 million this year, compared with $555.3 million in 2023. Diluted earnings per share was $6.32 for the nine months ended September 30, 2024, up from diluted earnings per share of $1.10 in 2023; adjusted diluted earnings per share were $7.84, compared with $5.02 last year.

The following chart reflects the aggregation of segment Adjusted EBITDA for the third quarter of 2024 and 2023.

Cash Flows and Capital Allocation:

Net cash provided by operating activities was $261.6 million for the third quarter of 2024, compared with $325.7 million in the prior-year quarter. Free Cash Flow⁵was an inflow of $216.7 million this quarter, compared with $276.2 million in the prior year. In the current quarter, and as disclosed last quarter, the company repurchased a loan from Fannie Mae, negatively impacting operating cash flows. In addition, lower cash flow performance was partially due to nearly $30.0 million of higher cash taxes paid (approximately $117.0 million of incremental cash taxes paid on a year-to-date basis) as well as a $21.0 million headwind from Net reimbursables driven by growth in Workplace Management. Partially offsetting these items was higher cash provided by earnings, driven by improved business performance.

The number of shares repurchased and cash paid for repurchases is noted in the following table:

	Three Months Ended September 30,		Nine Months Ended September 30, 2024
($ in millions)	2024	2023	2024	2023
Total number of shares repurchased (in 000’s)	83.5	123.2	297.9	262.5
Total paid for shares repurchased	$ 20.1	20.1	$ 60.3	40.1

As of September 30, 2024, $1,033.3 million remained authorized for repurchase.

Net Debt, Leverage and Liquidity⁵:

	September 30, 2024	June 30, 2024	September 30, 2023

Total Net Debt (in millions)	$ 1,597.3	1,752.0	1,698.6

Net Leverage Ratio	1.4x	1.7x	1.9x

Corporate Liquidity (in millions)	$ 3,392.8	2,449.4	2,139.5

The decrease in Net Debt from June 30, 2024, reflected incremental cash flows from operating activities during the third quarter of 2024. The Net Debt reduction from September 30, 2023, was largely attributable to improved cash flows from operations over the trailing twelve months ended September 30, 2024, compared with the twelve-month period ended September 30, 2023.

In addition to the Corporate Liquidity detailed above, the company maintains a commercial paper program (the “Program”) with $2.5 billion authorized for issuance. As of September 30, 2024, there was $800.0 million outstanding under the Program.

Markets Advisory Third-Quarter 2024 Performance Highlights:

Markets Advisory ($ in millions, “LC” = local currency)	Three Months Ended September 30,		% Change in USD	% Change in LC	Nine Months Ended September 30,		% Change in USD	% Change in LC
	2024	2023	% Change in USD	% Change in LC	2024	2023	% Change in USD	% Change in LC
Revenue	$ 1,143.8	$ 992.4	15 %	15 %	$ 3,172.7	$ 2,924.2	8 %	9 %
Leasing	665.4	547.7	21	21	1,781.8	1,626.1	10	10
Property Management	452.3	419.2	8	8	1,318.6	1,229.3	7	8
Advisory, Consulting and Other	26.1	25.5	2	2	72.3	68.8	5	5
Segment operating expenses	$ 1,008.4	$ 923.0	9 %	9 %	$ 2,845.7	$ 2,715.2	5 %	5 %
Segment platform operating expenses	687.5	634.6	8	8	1,907.2	1,863.4	2	3
Gross contract costs⁵	320.9	288.4	11	11	938.5	851.8	10	11
Adjusted EBITDA¹	$ 151.9	$ 85.1	78 %	77 %	$ 376.8	$ 256.1	47 %	46 %

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.

The broad-based increase in Markets Advisory revenue was primarily driven by Leasing and was led by the office sector. Most geographies achieved double-digit growth, notably the U.S., India, UK, Australia and Greater China. Globally, industrial was flat to the prior-year quarter, ending a multi-quarter trend of declines in the sector as deal size rebounded. In addition, the number of larger-scale Leasing deals, where JLL has historically had a greater presence, increased over the prior-year quarter in nearly all asset classes. Property Management revenue growth was led by expansion in the U.S. and several countries in Asia Pacific, including incremental revenue in the U.S. associated with pass-through expenses.

Higher Adjusted EBITDA was largely driven by transactional revenue growth and continued cost discipline. In addition, the timing of prior-year incentive compensation accruals positively impacted the year-over-year profit performance.

Capital Markets Third-Quarter 2024 Performance Highlights:

Capital Markets ($ in millions, “LC” = local currency)	Three Months Ended September 30,		% Change in USD	% Change in LC	Nine Months Ended September 30,		% Change in USD	% Change in LC
	2024	2023	% Change in USD	% Change in LC	2024	2023	% Change in USD	% Change in LC
Revenue	$ 498.8	$ 435.8	14 %	14 %	$ 1,334.0	$ 1,240.9	8 %	8 %
Investment Sales, Debt/Equity Advisory and Other, excluding Net non-cash MSR^(a)	376.9	317.3	19	18	976.7	879.8	11	11
Net non-cash MSR and mortgage banking derivative activity ^(a)	(5.1)	(7.1)	28	29	(25.9)	(9.5)	(173)	(172)
Value and Risk Advisory	86.0	87.5	(2)	(3)	262.0	256.1	2	2
Loan Servicing	41.0	38.1	8	8	121.2	114.5	6	6
Segment operating expenses	$ 455.9	$ 410.0	11 %	11 %	$ 1,287.8	$ 1,209.1	7 %	7 %
Segment platform operating expenses	444.4	398.5	12	11	1,250.9	1,175.2	6	6
Gross contract costs⁵	11.5	11.5	—	(1)	36.9	33.9	9	10
Equity earnings	$ 0.2	$ 0.7	(71) %	(67) %	$ 0.8	$ 6.1	(87) %	(86) %
Adjusted EBITDA¹	$ 65.7	$ 50.3	31 %	30 %	$ 124.5	$ 97.0	28 %	29 %


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)	Historically, net non-cash MSR and mortgage banking derivative activity was included in the Investment Sales, Debt/Equity Advisory and Other caption. Effective beginning Q2 2024, the net non-cash MSR and mortgage banking derivative activity revenue is separately presented in the above table and prior period financial information recast to conform with this presentation

Capital Markets revenue growth was led by Investment Sales, Debt/Equity Advisory and Other, excluding Net non-cash MSR, as investor sentiment strengthened. This revenue growth was geographically broad-based, most notably in the United States and Europe, and was across nearly all asset classes, with hotels, office and industrial leading the way. Investment sales in the U.S. grew approximately 30%, meaningfully outperforming the broader market for investment sales, which grew 23% according to JLL Research.

The Adjusted EBITDA improvement was largely attributable to the transactional revenue growth described above and continued cost discipline.

Work Dynamics Third-Quarter 2024 Performance Highlights:

Work Dynamics ($ in millions, “LC” = local currency)	Three Months Ended September 30,		% Change in USD	% Change in LC	Nine Months Ended September 30,		% Change in USD	% Change in LC
Work Dynamics ($ in millions, “LC” = local currency)	2024	2023	% Change in USD	% Change in LC	2024	2023	% Change in USD	% Change in LC
Revenue	$ 4,068.2	$ 3,514.2	16 %	16 %	$ 11,641.0	$ 10,165.0	15 %	15 %
Workplace Management	3,164.6	2,637.1	20	20	9,057.4	7,687.7	18	18
Project Management	771.3	747.0	3	3	2,215.8	2,126.5	4	4
Portfolio Services and Other	132.3	130.1	2	1	367.8	350.8	5	4
Segment operating expenses	$ 4,019.6	$ 3,472.4	16 %	16 %	$ 11,513.3	$ 10,081.3	14 %	14 %
Segment platform operating expenses	500.9	455.9	10	10	1,411.3	1,333.8	6	6
Gross contract costs⁵	3,518.7	3,016.5	17	17	10,102.0	8,747.5	15	16
Adjusted EBITDA¹	$ 74.3	$ 61.6	21 %	20 %	$ 196.3	$ 143.5	37 %	37 %

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 revenue growth was led by continued strong performance in Workplace Management, largely from U.S. mandate expansions. Project Management revenue performance varied across geographies given shifts in business mix as lower pass-through costs partially offset management fees increases in the mid-single digits. Greater activity in Portfolio Services and Other was largely offset by the absence of fees associated with a large transaction on behalf of a U.S. client in 2023.

Adjusted EBITDA expansion was driven by the top-line performance described above with enhanced platform leverage, which more than offset nearly $10 million of expense associated with the timing of accruals related to gross receipts taxes in a handful of U.S. states.

JLL Technologies Third-Quarter 2024 Performance Highlights:

JLL Technologies

($ in millions, “LC” = local currency)

Three Months Ended September 30,

% Change in USD

% Change in LC

Nine Months Ended September 30,

% Change in USD

% Change in LC

2024

2023

2024

2023

Revenue

$ 56.7

$ 58.9

(4) %

$ 167.0

$ 180.9

(8) %

Segment operating expenses

$ 75.7

$ 68.5

11 %

10 %

$ 211.3

$ 218.0

(3) %

Segment platform operating expenses^(a)

74.3

65.2

207.3

207.0

—

Gross contract costs⁵

1.4

3.3

(58)

(59)

4.0

11.0

(64)

Adjusted EBITDA¹

$ (7.8)

$ (5.7)

(37) %

(39) %

$ (23.8)

$ (25.2)

6 %

(a) Included in Segment platform operating expenses is carried interest expense of $2.2 million and $4.3 million for the three and nine months ended September 30, 2024, and a carried interest benefit of $0.1 million and $9.4 million for the three and nine months ended September 30, 2023, related to Equity earnings (losses) of the segment.

The decline in JLL Technologies revenue was due to lower contract signings over the trailing twelve months in services offerings, partially offset by continued growth in software offerings.

The increase in segment operating expenses is primarily driven by 1) $6.3 million of non-cash losses from convertible notes associated with JLL Technologies investments, which are excluded from Adjusted EBITDA consistent with equity earnings/losses from investments, 2) an approximate $5 million reduction to incentive compensation in the prior-year quarter attributable to achievement against certain targets, and 3) an incremental $2.3 million of carried interest expense associated with net equity earnings on Spark Venture Funds investments.

The lower Adjusted EBITDA was primarily attributable to lower revenue as well as the incentive compensation and carried interest expenses items described above, which overshadowed the benefits of cost discipline and improved operating efficiency over the trailing twelve months.

LaSalle Third-Quarter 2024 Performance Highlights:

LaSalle ($ in millions, “LC” = local currency)	Three Months Ended September 30,		% Change in USD	% Change in LC	Nine Months Ended September 30,		% Change in USD	% Change in LC
LaSalle ($ in millions, “LC” = local currency)	2024	2023	% Change in USD	% Change in LC	2024	2023	% Change in USD	% Change in LC
Revenue	$ 101.3	$ 110.1	(8) %	(8) %	$ 307.3	$ 368.4	(17) %	(16) %
Advisory fees	92.7	102.7	(10)	(10)	278.1	306.3	(9)	(8)
Transaction fees and other	8.6	7.4	16	17	24.4	22.8	7	10
Incentive fees	—	—	n.m.	n.m.	4.8	39.3	(88)	(87)
Segment operating expenses	$ 89.7	$ 86.8	3 %	3 %	$ 264.6	$ 290.6	(9) %	(9) %
Segment platform operating expenses	80.4	79.4	1	1	238.1	268.6	(11)	(11)
Gross contract costs⁵	9.3	7.4	26	26	26.5	22.0	20	21
Adjusted EBITDA¹	$ 14.0	$ 26.0	(46) %	(45) %	$ 57.7	$ 83.9	(31) %	(28) %

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.

LaSalle’s decrease in revenue was primarily attributable to declines in assets under management (“AUM”) over the trailing twelve months, most notably in North America and Europe, and lower fees in Europe as a result of structural changes to a lower-margin business, as discussed in previous quarters this year.

The lower Adjusted EBITDA was largely driven by the decline in revenue. In addition, the prior-year quarter included a one-time reduction to a legacy incentive compensation accrual upon final determination of performance relative to target.

As of September 30, 2024, LaSalle had $84.6 billion of AUM. Compared with AUM of $92.9 billion as of September 30, 2023, the AUM as of September 30, 2024, decreased 9% in USD (7% in local currency). The net decrease in AUM over the trailing twelve months resulted from (i) $5.4 billion of dispositions and withdrawals, (ii) $3.9 billion of net valuation decreases, (iii) $1.7 billion of foreign currency decreases and (iv) a $0.8 billion decrease in uncalled committed capital and cash held, partially offset by (v) $3.5 billion of acquisitions and takeovers.

Finally, the company committed to invest an incremental $100 million in a LaSalle flagship fund, JLL Income Property Trust.

About JLL
For over 200 years, JLL JLL, a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500^® company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 111,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAY^SM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.

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Live Webcast	Conference Call
Management will offer a live webcast for shareholders, analysts and investment professionals on Wednesday, November 6, 2024, 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 third quarter 2024 earnings call has been posted to the Investor Relations section of JLL’s website: ir.jll.com.	If you have any questions, please contact Brian Hogan, Interim Head of Investor Relations.
	Phone:	+1 312 252 8943
	Email:	JLLInvestorRelations@jll.com

Cautionary Note Regarding Forward-Looking Statements

Statements in this news release regarding, among other things, future financial results and performance, achievements, plans, objectives and share repurchases 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, the occurrence of which are outside JLL’s control which may cause JLL’s actual results, performance, achievements, plans, and objectives 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 “Risk Factors,” “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 filed Annual Report on Form 10-K for the year ended December 31, 2023, soon to be filed Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 and other reports filed with the Securities and Exchange Commission. 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 expectations or results, or any change in events.

JONES LANG LASALLE INCORPORATED
Consolidated Statements of Operations (Unaudited)

	Three Months Ended September 30,		Nine Months Ended September 30,
(in millions, except share and per share data)	2024	2023	2024	2023

Revenue	$ 5,868.8	$ 5,111.4	$ 16,622.0	$ 14,879.4

Operating expenses:
Compensation and benefits	$ 2,854.6	$ 2,434.6	$ 7,869.4	$ 7,104.6
Operating, administrative and other	2,729.2	2,467.0	8,064.5	7,233.1
Depreciation and amortization	65.5	59.1	188.8	176.5
Restructuring and acquisition charges⁴	(8.8)	31.6	4.4	79.1
Total operating expenses	$ 5,640.5	$ 4,992.3	$ 16,127.1	$ 14,593.3

Operating income	$ 228.3	$ 119.1	$ 494.9	$ 286.1

Interest expense, net of interest income	38.1	37.1	110.3	103.9
Equity losses	(0.9)	(11.2)	(20.0)	(117.3)
Other income	2.9	3.0	14.1	1.9

Income before income taxes and noncontrolling interest	192.2	73.8	378.7	66.8
Income tax provision	37.4	14.5	73.8	13.0
Net income	154.8	59.3	304.9	53.8

Net (loss) income attributable to noncontrolling interest	(0.3)	(0.4)	(0.7)	0.8

Net income attributable to common shareholders	$ 155.1	$ 59.7	$ 305.6	$ 53.0

Basic earnings per common share	$ 3.26	$ 1.25	$ 6.43	$ 1.11
Basic weighted average shares outstanding (in 000’s)	47,505	47,662	47,506	47,655

Diluted earnings per common share	$ 3.20	$ 1.23	$ 6.32	$ 1.10
Diluted weighted average shares outstanding (in 000’s)	48,497	48,394	48,355	48,317

Please reference accompanying financial statement notes.

JONES LANG LASALLE INCORPORATED
Selected Segment Financial Data (Unaudited)
	Three Months Ended September 30,		Nine Months Ended September 30,
(in millions)	2024	2023	2024	2023
MARKETS ADVISORY
Revenue	$ 1,143.8	$ 992.4	$ 3,172.7	$ 2,924.2

Platform compensation and benefits	$ 582.5	$ 531.2	$ 1,588.4	$ 1,538.6
Platform operating, administrative and other	87.7	86.5	266.7	273.4
Depreciation and amortization	17.3	16.9	52.1	51.4
Segment platform operating expenses	687.5	634.6	1,907.2	1,863.4
Gross contract costs⁵	320.9	288.4	938.5	851.8
Segment operating expenses	$ 1,008.4	$ 923.0	$ 2,845.7	$ 2,715.2
Segment operating income	$ 135.4	$ 69.4	$ 327.0	$ 209.0
Add:
Equity earnings	0.1	0.1	0.5	0.3
Depreciation and amortization^(a)	16.3	15.9	49.2	48.5
Other income	1.4	1.8	3.0	0.5
Net income attributable to noncontrolling interest	(0.2)	(0.2)	(0.5)	(0.8)
Adjustments:
Net (gain) loss on disposition	—	(0.9)	—	0.9
Interest on employee loans, net of forgiveness	(1.1)	(1.0)	(2.4)	(2.3)
Adjusted EBITDA¹	$ 151.9	$ 85.1	$ 376.8	$ 256.1

(a) This adjustment excludes the noncontrolling interest portion of amortization of acquisition-related intangibles which is not attributable to common shareholders.

JONES LANG LASALLE INCORPORATED
Selected Segment Financial Data (Unaudited) Continued
	Three Months Ended September 30,		Nine Months Ended September 30,
(in millions)	2024	2023	2024	2023
CAPITAL MARKETS
Revenue	$ 498.8	$ 435.8	$ 1,334.0	$ 1,240.9

Platform compensation and benefits	$ 365.5	$ 323.8	$ 994.2	$ 943.1
Platform operating, administrative and other	62.3	58.3	206.4	183.6
Depreciation and amortization	16.6	16.4	50.3	48.5
Segment platform operating expenses	444.4	398.5	1,250.9	1,175.2
Gross contract costs⁵	11.5	11.5	36.9	33.9
Segment operating expenses	$ 455.9	$ 410.0	$ 1,287.8	$ 1,209.1
Segment operating income	$ 42.9	$ 25.8	$ 46.2	$ 31.8
Add:
Equity earnings	0.2	0.7	0.8	6.1
Depreciation and amortization	16.6	16.4	50.3	48.5
Other income	1.6	1.3	3.0	1.5
Adjustments:
Net non-cash MSR and mortgage banking derivative activity	5.1	7.1	25.9	9.5
Interest on employee loans, net of forgiveness	(0.7)	(0.6)	(1.7)	—
Gain on disposition	—	(0.4)	—	(0.4)
Adjusted EBITDA¹	$ 65.7	$ 50.3	$ 124.5	$ 97.0

JONES LANG LASALLE INCORPORATED
Selected Segment Financial Data (Unaudited) Continued
	Three Months Ended September 30,		Nine Months Ended September 30,
(in millions)	2024	2023	2024	2023
WORK DYNAMICS
Revenue	$ 4,068.2	$ 3,514.2	$ 11,641.0	$ 10,165.0

Platform compensation and benefits	$ 348.8	$ 332.9	$ 1,002.4	$ 958.9
Platform operating, administrative and other	127.3	103.3	342.6	316.0
Depreciation and amortization	24.8	19.7	66.3	58.9
Segment platform operating expenses	500.9	455.9	1,411.3	1,333.8
Gross contract costs⁵	3,518.7	3,016.5	10,102.0	8,747.5
Segment operating expenses	$ 4,019.6	$ 3,472.4	$ 11,513.3	$ 10,081.3
Segment operating income	$ 48.6	$ 41.8	$ 127.7	$ 83.7
Add:
Equity earnings	1.0	0.1	2.1	1.3
Depreciation and amortization	24.8	19.7	66.3	58.9
Net (income) loss attributable to noncontrolling interest	(0.1)	—	0.2	(0.4)
Adjusted EBITDA¹	$ 74.3	$ 61.6	$ 196.3	$ 143.5

JONES LANG LASALLE INCORPORATED
Selected Segment Financial Data (Unaudited) Continued
	Three Months Ended September 30,		Nine Months Ended September 30,
(in millions)	2024	2023	2024	2023
JLL TECHNOLOGIES
Revenue	$ 56.7	$ 58.9	$ 167.0	$ 180.9

Platform compensation and benefits^(a)	$ 50.3	$ 48.7	$ 151.1	$ 155.3
Platform operating, administrative and other	19.1	12.6	42.0	39.8
Depreciation and amortization	4.9	3.9	14.2	11.9
Segment platform operating expenses	74.3	65.2	207.3	207.0
Gross contract costs⁵	1.4	3.3	4.0	11.0
Segment operating expenses	$ 75.7	$ 68.5	$ 211.3	$ 218.0
Segment operating loss	$ (19.0)	$ (9.6)	$ (44.3)	$ (37.1)
Add:
Depreciation and amortization	4.9	3.9	14.2	11.9
Adjustments:
Credit losses on convertible note investments	6.3	—	6.3	—
Adjusted EBITDA¹	$ (7.8)	$ (5.7)	$ (23.8)	$ (25.2)
Equity earnings (losses)	$ 11.6	$ (3.0)	$ 1.6	$ (102.0)

(a) Included in Platform compensation and benefits is carried interest expense of $2.2 million and $4.3 million for the three and nine months ended September 30, 2024 and a carried interest benefit of $0.1 million and $9.4 million for the three and nine months ended September 30, 2023, related to Equity earnings (losses) of the segment.

JONES LANG LASALLE INCORPORATED
Selected Segment Financial Data (Unaudited) Continued
	Three Months Ended September 30,		Nine Months Ended September 30,
(in millions)	2024	2023	2024	2023
LASALLE
Revenue	$ 101.3	$ 110.1	$ 307.3	$ 368.4

Platform compensation and benefits	$ 59.8	$ 63.2	$ 180.1	$ 216.5
Platform operating, administrative and other	18.7	14.0	52.1	46.3
Depreciation and amortization	1.9	2.2	5.9	5.8
Segment platform operating expenses	80.4	79.4	238.1	268.6
Gross contract costs⁵	9.3	7.4	26.5	22.0
Segment operating expenses	$ 89.7	$ 86.8	$ 264.6	$ 290.6
Segment operating income	$ 11.6	$ 23.3	$ 42.7	$ 77.8
Add:
Depreciation and amortization	1.9	2.2	5.9	5.8
Other (expense) income	(0.1)	(0.1)	8.1	(0.1)
Net loss attributable to noncontrolling interest	0.6	0.6	1.0	0.4
Adjusted EBITDA¹	$ 14.0	$ 26.0	$ 57.7	$ 83.9
Equity losses	$ (13.8)	$ (9.1)	$ (25.0)	$ (23.0)

JONES LANG LASALLE INCORPORATED
Consolidated Statement of Cash Flows (Unaudited)

	Nine Months Ended September 30,			Nine Months Ended September 30,
(in millions)	2024	2023		2024	2023
Cash flows from operating activities⁷:			Cash flows from investing activities:
Net income	$ 304.9	$ 53.8	Net capital additions – property and equipment	$ (126.3)	$ (137.7)
Reconciliation of net income to net cash used in operating activities:			Business acquisitions, net of cash acquired	(40.8)	(13.6)
Depreciation and amortization	188.8	176.5	Capital contributions to investments	(69.2)	(86.8)
Equity losses	20.0	117.3	Distributions of capital from investments	14.3	21.5
Net loss on dispositions	—	0.5	Acquisition of controlling interest, net of cash acquired	3.7	—
Distributions of earnings from investments	10.7	8.2	Other, net	(0.7)	(3.8)
Provision for loss on receivables and other assets	34.7	21.7	Net cash used in investing activities	(219.0)	(220.4)
Amortization of stock-based compensation	78.9	59.5	Cash flows from financing activities:
Net non-cash mortgage servicing rights and mortgage banking derivative activity	25.9	9.5	Proceeds from borrowings under credit facility	6,029.0	5,969.0
Accretion of interest and amortization of debt issuance costs	4.1	3.1	Repayments of borrowings under credit facility	(6,309.0)	(5,594.0)
Other, net	(5.2)	15.4	Proceeds from issuance of commercial paper	800.0	—
Change in:			Net repayments of short-term borrowings	(73.0)	(46.4)
Receivables	59.7	158.1	Payments of deferred business acquisition obligations and earn-outs	(5.1)	(22.6)
Reimbursable receivables and reimbursable payables	(160.0)	(110.7)	Repurchase of common stock	(60.4)	(39.4)
Prepaid expenses and other assets	(105.0)	(32.0)	Noncontrolling interest contributions (distributions), net	2.1	(4.2)
Income taxes receivable, payable and deferred	(172.0)	(114.0)	Other, net	(34.6)	(31.2)
Accounts payable, accrued liabilities and other liabilities	(100.1)	(91.7)	Net cash provided by financing activities	349.0	231.2
Accrued compensation (including net deferred compensation)	(327.4)	(428.8)	Effect of currency exchange rate changes on cash, cash equivalents and restricted cash	(1.8)	(9.6)
Net cash used in operating activities	$ (142.0)	$ (153.6)	Net change in cash, cash equivalents and restricted cash	$ (13.8)	$ (152.4)
			Cash, cash equivalents and restricted cash, beginning of the period	663.4	746.0
			Cash, cash equivalents and restricted cash, end of the period	$ 649.6	$ 593.6


Please reference accompanying financial statement notes.

JONES LANG LASALLE INCORPORATED

Consolidated Balance Sheets

September 30,

December 31,

September 30,

December 31,

(in millions, except share and per share data)

2024

2023

2024

2023

ASSETS

(Unaudited)

LIABILITIES AND EQUITY

(Unaudited)

Current assets:

Current liabilities:

Cash and cash equivalents

$ 437.8

$ 410.0

Accounts payable and accrued liabilities

$ 1,162.0

$ 1,406.7

Trade receivables, net of allowance

1,998.5

2,095.8

Reimbursable payables

1,846.8

1,796.9

Notes and other receivables

414.6

446.4

Accrued compensation and benefits

1,366.4

1,698.3

Reimbursable receivables

2,535.4

2,321.7

Short-term borrowings

99.6

147.9

Warehouse receivables

2,055.9

677.4

Commercial paper, net of debt issuance costs

798.0

—

Short-term contract assets, net of allowance

327.3

338.3

Short-term contract liability and deferred income

200.1

226.4

Prepaid and other

637.2

567.4

Warehouse facilities

2,053.1

662.7

Total current assets

8,406.7

6,857.0

Short-term operating lease liability

162.8

161.9

Property and equipment, net of accumulated depreciation

599.3

613.9

Other

339.2

345.3

Operating lease right-of-use asset

746.8

730.9

Total current liabilities

8,028.0

6,446.1

Goodwill

4,667.2

4,587.4

Noncurrent liabilities:

Identified intangibles, net of accumulated amortization

721.1

785.0

Credit facility, net of debt issuance costs

332.8

610.6

Investments

866.5

816.6

Long-term debt, net of debt issuance costs

783.7

779.3

Long-term receivables

390.9

363.8

Long-term deferred tax liabilities, net

41.6

44.8

Deferred tax assets, net

525.9

497.4

Deferred compensation

653.0

580.0

Deferred compensation plans

672.2

604.3

Long-term operating lease liability

783.1

754.5

Other

220.6

208.5

Other

426.0

439.6

Total assets

$ 17,817.2

$ 16,064.8

Total liabilities

$ 11,048.2

$ 9,654.9

Company shareholders’ equity

Common stock

0.5

0.5

Additional paid-in capital

2,020.8

2,019.7

Retained earnings

6,094.6

5,795.6

Treasury stock

(921.8)

(920.1)

Shares held in trust

(12.1)

(10.4)

Accumulated other comprehensive loss

(535.1)

(591.5)

Total company shareholders’ equity

6,646.9

6,293.8

Noncontrolling interest

122.1

116.1

Total equity

6,769.0

6,409.9

Total liabilities and equity

$ 17,817.2

$ 16,064.8

Please reference accompanying financial statement notes.

JONES LANG LASALLE INCORPORATED
Financial Statement Notes

1. Management uses certain non-GAAP financial measures to develop budgets and forecasts, measure and reward performance against those budgets and forecasts, and enhance comparability to prior periods. These measures are believed to be useful to investors and other external stakeholders as supplemental measures of core operating performance and include the following:

(i) Adjusted EBITDA attributable to common shareholders (“Adjusted EBITDA”),

(ii) Adjusted net income attributable to common shareholders and Adjusted diluted earnings per share,

(iii) Free Cash Flow (refer to Note 5),

(iv) Net Debt (refer to Note 5) and

(v) Percentage changes against prior periods, presented on a local currency basis.

However, non-GAAP financial measures should not be considered alternatives to measures determined in accordance with U.S. generally accepted accounting principles (“GAAP”). Any measure that eliminates components of a company’s capital structure, cost of operations or investments, or other results has limitations as a performance measure. In light of these limitations, management also considers GAAP financial measures and does not rely solely on non-GAAP financial measures. Because the company’s non-GAAP financial measures are not calculated in accordance with GAAP, they may not be comparable to similarly titled measures used by other companies.

Effective January 1, 2024, the definitions of Adjusted EBITDA and Adjusted net income attributable to common shareholders were updated to exclude certain equity earnings/losses as further described below. Comparable periods have been recast to conform to the revised presentation.

Also effective with first-quarter 2024 reporting, the company no longer reports the non-GAAP measures “Fee revenue” and “Fee-based operating expenses” following the conclusion of a comment letter from the Securities and Exchange Commission Staff in February 2024.

Adjustments to GAAP Financial Measures Used to Calculate non-GAAP Financial Measures

Net Non-Cash Mortgage Servicing Rights (“MSR”) and Mortgage Banking Derivative Activity consists of the balances presented within Revenue composed of (i) derivative gains/losses resulting from mortgage banking loan commitment and warehousing activity and (ii) gains recognized from the retention of MSR upon origination and sale of mortgage loans, offset by (iii) amortization of MSR intangible assets over the period that net servicing income is projected to be received. Non-cash derivative gains/losses resulting from mortgage banking loan commitment and warehousing activity are calculated as the estimated fair value of loan commitments and subsequent changes thereof, primarily represented by the estimated net cash flows associated with future servicing rights. MSR gains and corresponding MSR intangible assets are calculated as the present value of estimated cash flows over the estimated mortgage servicing periods. The above activity is reported entirely within Revenue of the Capital Markets segment. Excluding net non-cash MSR and mortgage banking derivative activity reflects how the company manages and evaluates performance because the excluded activity is non-cash in nature.

Restructuring and Acquisition Charges primarily consist of: (i) severance and employment-related charges, including those related to external service providers, incurred in conjunction with a structural business shift, which can be represented by a notable change in headcount, change in leadership or transformation of business processes; (ii) acquisition, transaction and integration-related charges, including fair value adjustments, which are generally non-cash in the periods such adjustments are made, to assets and liabilities recorded in purchase accounting such as earn-out liabilities and intangible assets; and (iii) lease exit charges. Such activity is excluded as the amounts are generally either non-cash in nature or the anticipated benefits from the expenditures would not likely be fully realized until future periods. Restructuring and acquisition charges are excluded from segment operating results and therefore are not line items in the segments’ reconciliation to Adjusted EBITDA.

Amortization of Acquisition-Related Intangibles is primarily associated with the fair value ascribed at closing of an acquisition to assets such as acquired management contracts, customer backlog and relationships, and trade name. Such activity is excluded as it is non-cash and the change in period-over-period activity is generally the result of longer-term strategic decisions and therefore not necessarily indicative of core operating results.

Gain or Loss on Disposition reflects the gain or loss recognized on the sale of businesses. Given the low frequency of business disposals by the company historically, the gain or loss directly associated with such activity is excluded as it is not considered indicative of core operating performance. In 2023, the $0.5 million net loss included $1.8 million of loss related to the disposition of a business in Markets Advisory, partially offset by a $1.3 million gain related to the disposition of a business in Markets Advisory and Capital Markets.

Interest on Employee Loans, Net of Forgiveness reflects interest accrued on employee loans less the amount of accrued interest forgiven. Certain employees (predominantly in our Leasing and Capital Markets businesses) receive cash payments structured as loans, with interest. Employees earn forgiveness of the loan based on performance, generally calculated as a percentage of revenue production. Such forgiven amounts are reflected in Compensation and benefits expense. Given the interest accrued on these employee loans and subsequent forgiveness are non-cash and the amounts perfectly offset over the life of the loan, the activity is not indicative of core operating performance and is excluded from non-GAAP measures.

Equity Earnings/Losses (JLL Technologies and LaSalle) primarily reflects valuation changes on investments reported at fair value. Investments reported at fair value are increased or decreased each reporting period by the change in the fair value of the investment. Where the measurement alternative has been elected, our investment is increased or decreased upon observable price changes. Such activity is excluded as the amounts are generally non‑cash in nature and not indicative of core operating performance.

Note: Equity earnings/losses in the remaining segments represent the results of unconsolidated operating ventures (not investments), and therefore the amounts are included in adjusted profit measures on both a segment and consolidated basis.

Credit Losses on Convertible Note Investments reflects credit impairments associated with pre-equity convertible note investments in early-stage proptech enterprises. Such losses are similar to the equity investment-related losses included in equity earnings/losses for JLL Technologies’ investments and are therefore consistently excluded from adjusted measures.

Reconciliation of Non-GAAP Financial Measures
Below are (i) a reconciliation of Net income attributable to common shareholders to Adjusted EBITDA, (ii) a reconciliation to Adjusted net income and (iii) components of Adjusted diluted earnings per share.

	Three Months Ended September 30,		Nine Months Ended September 30,
(in millions)	2024	2023	2024	2023

Net income attributable to common shareholders	$ 155.1	$ 59.7	$ 305.6	$ 53.0
Add:
Interest expense, net of interest income	38.1	37.1	110.3	103.9
Income tax provision	37.4	14.5	73.8	13.0
Depreciation and amortization^(a)	64.5	58.1	185.9	173.6
Adjustments:
Restructuring and acquisition charges⁴	(8.8)	31.6	4.4	79.1
Net (gain) loss on disposition	—	(1.3)	—	0.5
Net non-cash MSR and mortgage banking derivative activity	5.1	7.1	25.9	9.5
Interest on employee loans, net of forgiveness	(1.8)	(1.6)	(4.1)	(2.3)
Equity losses – JLL Technologies and LaSalle	2.2	12.1	23.4	125.0
Credit losses on convertible note investments	6.3	—	6.3	—
Adjusted EBITDA	$ 298.1	$ 217.3	$ 731.5	$ 555.3

	Three Months Ended September 30,		Nine Months Ended September 30,
(In millions, except share and per share data)	2024	2023	2024	2023

Net income attributable to common shareholders	$ 155.1	$ 59.7	$ 305.6	$ 53.0
Diluted shares (in thousands)	48,497	48,394	48,355	48,317
Diluted earnings per share	$ 3.20	$ 1.23	$ 6.32	$ 1.10

Net income attributable to common shareholders	$ 155.1	$ 59.7	$ 305.6	$ 53.0
Adjustments:
Restructuring and acquisition charges⁴	(8.8)	31.6	4.4	79.1
Net non-cash MSR and mortgage banking derivative activity	5.1	7.1	25.9	9.5
Amortization of acquisition-related intangibles^(a)	15.6	16.2	46.6	49.9
Net (gain) loss on disposition	—	(1.3)	—	0.5
Interest on employee loans, net of forgiveness	(1.8)	(1.6)	(4.1)	(2.3)
Equity losses – JLL Technologies and LaSalle	2.2	12.1	23.4	125.0
Credit losses on convertible note investments	6.3	—	6.3	—
Tax impact of adjusted items^(b)	(3.7)	(17.5)	(28.9)	(72.0)
Adjusted net income attributable to common shareholders	$ 170.0	$ 106.3	$ 379.2	$ 242.7
Diluted shares (in thousands)	48,497	48,394	48,355	48,317
Adjusted diluted earnings per share	$ 3.50	$ 2.19	$ 7.84	$ 5.02


(a)	This adjustment excludes the noncontrolling interest portion of amortization of acquisition-related intangibles which is not attributable to common shareholders.

(b)	For the first half of 2024 and the first nine months of 2023, the tax impact of adjusted items was calculated using the applicable statutory rates by tax jurisdiction. For the third quarter of 2024, the tax impact of adjusted items was calculated using the consolidated effective tax rate, as this was deemed to approximate the tax impact of adjusted items calculated using applicable statutory tax rates.

Operating Results – Local Currency
In discussing operating results, the company refers to percentage changes in local currency, unless otherwise noted. Amounts presented on a local currency basis are calculated by translating the current period results of foreign operations to U.S. dollars using the foreign currency exchange rates from the comparative period. Management believes this methodology provides a framework for assessing performance and operations excluding the effect of foreign currency fluctuations.

The following table reflects the reconciliation to local currency amounts for consolidated (i) Revenue, (ii) Operating income and (iii) Adjusted EBITDA.

	Three Months Ended September 30,		Nine Months Ended September 30,
($ in millions)	2024	% Change	2024	% Change
Revenue:
At current period exchange rates	$ 5,868.8	15 %	$ 16,622.0	12 %
Impact of change in exchange rates	(8.5)	n/a	29.5	n/a
At comparative period exchange rates	$ 5,860.3	15 %	$ 16,651.5	12 %

Operating income:
At current period exchange rates	$ 228.3	92 %	$ 494.9	73 %
Impact of change in exchange rates	0.2	n/a	8.3	n/a
At comparative period exchange rates	$ 228.5	92 %	$ 503.2	76 %

Adjusted EBITDA:
At current period exchange rates	$ 298.1	37 %	$ 731.5	32 %
Impact of change in exchange rates	(0.1)	n/a	7.9	n/a
At comparative period exchange rates	$ 298.0	37 %	$ 739.4	33 %

2. n.m.: “not meaningful”, represented by a percentage change of greater than 1,000%, favorable or unfavorable.

3. As of September 30, 2024, LaSalle had $84.6 billion of real estate assets under management (“AUM”), composed of $45.0 billion invested in fund management vehicles, $36.4 billion invested in separate accounts and $3.2 billion invested in public securities. The geographic distribution was $28.6 billion in North America, $22.8 billion in Europe and $19.2 billion in Asia Pacific. The remaining $14.0 billion relates to Global Solutions which is a global business line.

Compared with AUM of $86.6 billion as of June 30, 2024, the AUM as of September 30, 2024, decreased 2% in both USD and local currency. The net decrease in AUM during the quarter resulted from (i) $1.5 billion of dispositions and withdrawals, (ii) $0.6 billion of foreign currency decreases, (iii) $0.4 billion decrease in uncalled committed capital and cash held and (iv) $0.2 billion of net valuation decreases, partially offset by (v) $0.7 billion of acquisitions and takeovers.

Assets under management data for separate accounts and fund management amounts are reported on a one-quarter lag. In addition, LaSalle raised $0.7 billion in private equity capital for the quarter ended September 30, 2024.

4. Restructuring and acquisition charges are excluded from the company’s measure of segment operating results, although they are included within consolidated Operating income calculated in accordance with GAAP. For purposes of segment operating results, the allocation of Restructuring and acquisition charges to the segments is not a component of management’s assessment of segment performance. The table below shows Restructuring and acquisition charges.

	Three Months Ended September 30,		Nine Months Ended September 30,
(in millions)	2024	2023	2024	2023
Severance and other employment-related charges	$ 6.1	$ 16.4	$ 17.8	$ 47.9
Restructuring, pre-acquisition and post-acquisition charges	6.0	15.1	20.1	31.7
Fair value adjustments that resulted in a net (decrease) increase to earn-out liabilities from prior-period acquisition activity	(20.9)	0.1	(33.5)	(0.5)
Total Restructuring and acquisition charges	$ (8.8)	$ 31.6	$ 4.4	$ 79.1

5. “Gross contract costs” represent certain costs associated with client-dedicated employees and third-party vendors and subcontractors and are directly or indirectly reimbursed through the fees we receive. These costs are presented on a gross basis in Operating expenses (with the corresponding fees in Revenue).

“Net Debt” is defined as the sum of the (i) Credit facility, inclusive of debt issuance costs, (ii) Long-term debt, inclusive of debt issuance costs, (iii) Commercial paper, inclusive of debt issuance costs and (iv) Short-term borrowings liability balances less Cash and cash equivalents.

“Net Leverage Ratio” is defined as Net Debt divided by the trailing twelve-month Adjusted EBITDA.

Below is a reconciliation of total debt to Net Debt and the components of Net Leverage Ratio.

($ in millions)	September 30, 2024	June 30, 2024	September 30, 2023

Total debt	$ 2,035.1	$ 2,176.4	$ 2,088.1
Less: Cash and cash equivalents	437.8	424.4	389.5
Net Debt	$ 1,597.3	$ 1,752.0	$ 1,698.6

Divided by: Trailing twelve-month Adjusted EBITDA	$ 1,114.6	$ 1,033.8	$ 915.3
Net Leverage Ratio	1.4x	1.7x	1.9x

“Corporate Liquidity” is defined as the unused portion of the company’s Credit facility plus cash and cash equivalents.

“Free Cash Flow” is defined as cash provided by operating activities less net capital additions – property and equipment.

Below is a reconciliation of net cash used in operating activities to Free Cash Flow.

	Nine Months Ended September 30,
(in millions)	2024	2023

Net cash used in operating activities	$ (142.0)	$ (153.6)
Net capital additions – property and equipment	(126.3)	(137.7)
Free Cash Flow	$ (268.3)	$ (291.3)

6. The company defines “Resilient” revenue as (i) Property Management, within Markets Advisory, (ii) Value and Risk Advisory, and Loan Servicing, within Capital Markets, (iii) Workplace Management, within Work Dynamics, (iv) JLL Technologies and (v) Advisory Fees, within LaSalle.

The company defines “Transactional” revenue as (i) Leasing and Advisory, Consulting and Other, within Markets Advisory, (ii) Investment Sales, Debt/Equity Advisory and Other, within Capital Markets, (iii) Project Management and Portfolio Services and Other, within Work Dynamics and (iv) Incentive fees and Transaction fees and other, within LaSalle.

7. Within the Consolidated Statements of Cash Flows, the company made certain presentation changes and recast prior-period information to conform with the current presentation. More specifically, the company recast certain components and captions within Cash flows from operating activities, which had no impact on previously-reported Net cash provided by operating activities or on the other consolidated financial statements.

8. Greater China: China, Hong Kong, Macau and Taiwan.

Appendix: Additional Segment Detail

Three Months Ended September 30, 2024

(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

Value and Risk Advisory

Loan Servicing

Total Capital Markets

Workplace Mgmt

Project Mgmt

Portfolio Services and Other

Total Work Dynamics

JLLT

LaSalle

Total

Revenue^(a)

$ 665.4

452.3

26.1

$ 1,143.8

$ 371.8

86.0

41.0

$ 498.8

$ 3,164.6

771.3

132.3

$ 4,068.2

$ 56.7

$ 101.3

$ 5,868.8

Gross contract costs⁵

$ 5.1

311.2

4.6

$ 320.9

$ 7.9

3.6

—

$ 11.5

$ 2,928.0

528.5

62.2

$ 3,518.7

$ 1.4

$ 9.3

$ 3,861.8

Platform operating expenses

$ 687.5

$ 444.4

$ 500.9

$ 74.3

$ 80.4

$ 1,787.5

Adjusted EBITDA¹

$ 151.9

$ 65.7

$ 74.3

$ (7.8)

$ 14.0

$ 298.1


(a)	Included as a reduction to Revenue is Net non-cash MSR and mortgage banking derivative activity of $5.1 million for the three months ended September 30, 2024 within Investment Sales, Debt/Equity Advisory and Other.

	Three Months Ended September 30, 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	Value and Risk Advisory	Loan Servicing	Total Capital Markets	Workplace Mgmt	Project Mgmt	Portfolio Services and Other	Total Work Dynamics	JLLT	LaSalle	Total

Revenue	$ 547.7	419.2	25.5	$ 992.4	$ 310.2	87.5	38.1	$ 435.8	$ 2,637.1	747.0	130.1	$ 3,514.2	$ 58.9	$ 110.1	$ 5,111.4
Gross contract costs⁵	$ 5.2	280.8	2.4	$ 288.4	$ 8.4	3.1	—	$ 11.5	$ 2,442.0	517.4	57.1	$ 3,016.5	$ 3.3	$ 7.4	$ 3,327.1
Platform operating expenses				$ 634.6				$ 398.5				$ 455.9	$ 65.2	$ 79.4	$ 1,633.6
Adjusted EBITDA¹				$ 85.1				$ 50.3				$ 61.6	$ (5.7)	$ 26.0	$ 217.3


(a)	Included as a reduction to Revenue is Net non-cash MSR and mortgage banking derivative activity of $7.1 million for the three months ended September 30, 2023 within Investment Sales, Debt/Equity Advisory and Other.

Appendix: Additional Segment Detail (continued)

Nine Months Ended September 30, 2024

(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

Value and Risk Advisory

Loan Servicing

Total Capital Markets

Workplace Mgmt

Project Mgmt

Portfolio Services and Other

Total Work Dynamics

JLLT

LaSalle

Total

Revenue^(a)

$ 1,781.8

1,318.6

72.3

$ 3,172.7

$ 950.8

262.0

121.2

$ 1,334.0

$ 9,057.4

2,215.8

367.8

$ 11,641.0

$ 167.0

$ 307.3

$ 16,622.0

Gross contract costs⁵

$ 15.2

914.1

9.2

$ 938.5

$ 27.6

9.3

—

$ 36.9

$ 8,384.5

1,529.6

187.9

$ 10,102.0

$ 4.0

$ 26.5

$ 11,107.9

Platform operating expenses

$ 1,907.2

$ 1,250.9

$ 1,411.3

$ 207.3

$ 238.1

$ 5,014.8

Adjusted EBITDA¹

$ 376.8

$ 124.5

$ 196.3

$ (23.8)

$ 57.7

$ 731.5


(a)	Included as a reduction to Revenue is Net non-cash MSR and mortgage banking derivative activity of $25.9 million for the nine months ended September 30, 2024 within Investment Sales, Debt/Equity Advisory and Other.

	Nine Months Ended September 30, 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	Value and Risk Advisory	Loan Servicing	Total Capital Markets	Workplace Mgmt	Project Mgmt	Portfolio Services and Other	Total Work Dynamics	JLLT	LaSalle	Total

Revenue^(a)	$ 1,626.1	1,229.3	68.8	$ 2,924.2	$ 870.3	256.1	114.5	$ 1,240.9	$ 7,687.7	2,126.5	350.8	$ 10,165.0	$ 180.9	$ 368.4	$ 14,879.4
Gross contract costs⁵	$ 13.1	832.8	5.9	$ 851.8	$ 25.8	8.1	—	$ 33.9	$ 7,121.2	1,456.3	170.0	$ 8,747.5	$ 11.0	$ 22.0	$ 9,666.2
Platform operating expenses				$ 1,863.4				$ 1,175.2				$ 1,333.8	$ 207.0	$ 268.6	$ 4,848.0
Adjusted EBITDA¹				$ 256.1				$ 97.0				$ 143.5	$ (25.2)	$ 83.9	$ 555.3


(a)	Included as a reduction to Revenue is Net non-cash MSR and mortgage banking derivative activity of $9.5 million for the nine months ended September 30, 2023 within Investment Sales, Debt/Equity Advisory and Other.

View original content to download multimedia:https://www.prnewswire.com/news-releases/jll-reports-financial-results-for-third-quarter-2024-302297103.html

SOURCE JLL-IR

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Markets News

Invesco Launches New ETFs Targeting AI, Cybersecurity, And Defense. Here's How Some Of Their Peers Have Performed In The Past Year

07.11.2024 by admin

Invesco has unveiled a new series of thematic exchange-traded funds (ETFs) that focus on artificial intelligence, cybersecurity, and defense sectors. These funds aim to leverage emerging trends within these industries.

What Happened: The newly introduced ETFs, named Invesco Artificial Intelligence Enablers, Cybersecurity, and Defence Innovation Ucits, are based on benchmarks crafted by Kensho, a division of S&P Global Indices. Kensho utilizes natural language processing to pinpoint companies with significant involvement in each theme, categorizing them into “core” and “non-core” groups, Financial Times reported on Thursday.

As per Invesco, core companies generate a substantial portion of their revenue from products and services aligned with these themes, while non-core companies provide essential inputs without focusing on end products. The AI enablers strategy targets firms advancing AI technology and infrastructure, whereas the cybersecurity ETF invests in companies protecting enterprises from unauthorized electronic access. The defense fund provides exposure to companies developing advanced weapons and defensive systems

Here are a few ETFs and how they fared in the past year, as per Benzinga Pro:

Artificial Intelligence

iShares U.S. Technology ETF ITW increased 45.40% over the year with holdings like Apple Inc. AAPL, Nvidia Corp. MSFT and Microsoft Corp. MSFT.
Fidelity MSCI Information Technology Index ETF FTEC, with similar exposure, rose 43.17%.
First Trust Dow Jones Internet Index Fund FTX, which gives exposure to Meta Platforms, Inc. META, Amazon.com Inc. AMZN, Netflix, Inc. NFLX, increased 45.59%.

Cybersecurity

First Trust NASDAQ Cybersecurity ETF CIBR increased 38.08%. Its holdings include Cisco Systems, Inc. CSCO, CrowdStrike Holdings, Inc. CRWD and Broadcom Inc. AVGO.
Amplify Cybersecurity ETF HACK rose 39.57%. Along with Broadcom, and Cisco, the ETF’s major holdings also include Palo Alto Networks, Inc. PANW, and General Dynamics Corporation GD.
iShares Cybersecurity & Tech ETF IHAK with exposure to companies such as SentinelOne, Inc. Class A S, and Fortinet, Inc. FTNT, rose 33.95%.

Defense

iShares US Aerospace & Defense ETF ITA with exposure to companies such as General Electric GE and RTX Corp. RTX increased 33.86%.
Invesco Aerospace & Defense ETF PPA with exposure to companies such as Boeing Co. BA and Lockheed Martin Corp LMT increased by 43.05%.
SPDR S&P Aerospace & Defense ETF XAR was up by 34.86%. It gives exposure to Axon Enterprise, Inc. AXN, L3Harris Technologies, Inc. LHX.

Why It Matters: The launch of these ETFs by Invesco comes at a time when thematic investing is gaining traction among investors looking to capitalize on specific industry trends. The focus on artificial intelligence, cybersecurity, and defense aligns with growing global interest in these areas, driven by technological advancements and increasing security concerns.

Read Next:

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

Image via Invesco

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Earnings News

Dogwood Therapeutics Announces Third Quarter 2024 Financial Results

07.11.2024 by admin

– Dogwood Therapeutics, Inc. (Nasdaq: “DWTX”) formed in October by combination of Virios Therapeutics, Inc. and Pharmagesic (Holdings) Inc., 100% parent company of Wex Pharmaceuticals, Inc. (the “Combination”) –

– Expanded pipeline with multiple programs in large markets with high unmet need –

– Strategic financing results in combined working capital of approximately $23 million to fund operations and advance Phase 2b Halneuron^®development through 2025 –

– Top-line results from Long-COVID Phase 2a study expected in mid-November 2024 –

– NaV 1.7 inhibition pain treatment, Halneuron^®, Phase 2b study for chemotherapy-induced neuropathic pain expected interim readout 2H 2025 –

ATLANTA, Nov. 07, 2024 (GLOBE NEWSWIRE) — Dogwood Therapeutics, Inc. DWTX (the “Company”), a development-stage biotechnology company developing new medicines to treat pain and fatigue-related disorders, today announced financial results for the third quarter ended September 30, 2024 and provided a business update.

“The formation of Dogwood Therapeutics last month represents a transformational expansion of our pipeline with the addition of Halneuron^®, a non-opioid, novel NaV 1.7 modulator to treat neuropathic pain associated with chemotherapy, purposefully complementing our promising development assets IMC-1 and IMC-2,” said Greg Duncan, Chief Executive Officer of Dogwood Therapeutics. “The concurrent strategic financing to be provided by an affiliate of CK Life Sciences Int’l., (Holdings) Inc. (“CKLS”), former owner of Pharmagesic (Holdings) Inc., provides us with operating capital through 2025. We see this as a win-win for legacy Virios shareholders and CKLS, with both short-term and medium-term value creation opportunities associated with forthcoming data from the Bateman-Horne Center (“BHC”) managed IMC-2 Phase 2 Long-COVID trial, and the Halneuron^® Phase 2b interim data projected for the second half of next year.”

Key Highlights

Dogwood’s expanded pipeline includes three late-stage assets: Halneuron^®, currently in Phase 2b development for chemotherapy-induced neuropathic pain (“CINP”); IMC-1, poised for Phase 3 development as a treatment for fibromyalgia (“FM”); and IMC-2, currently in Phase 2 development to treat Long-COVID (“LC”) sequelae.
In connection with the Combination, the Company announced that it raised $19.5 million in committed debt financing by an affiliate of CKLS in two tranches with $16.5 million funded as of October 7, 2024 and an additional $3.0 million to be funded in 1Q 2025, subject to certain conditions. This financing is expected to fund research and operations through several key milestones, including the release of results from the Halneuron^®Phase 2b interim analysis assessment expected in 2H 2025.
Top-line results from the ongoing BHC IMC-2 LC Phase 2a study, assessing two doses of the combination of valacyclovir + celecoxib versus placebo, are expected by mid-November 2024.

Dogwood Therapeutics Proprietary Pipeline Includes:

Halneuron^® is in Phase 2b development as a non-opioid, NaV 1.7 inhibitor to treat the neuropathic pain associated with chemotherapy treatment. Halneuron^® has been granted fast track designation from the Food and Drug Administration (“FDA”) for the treatment of CINP.

Next milestone: Interim data from the ongoing Phase 2b CINP study are expected in 2H 2025.

IMC-2 (valacyclovir + celecoxib) is in Phase 2a development as a combination antiviral treatment for LC.

Next milestone: Topline data from an investigator led, double blind controlled proof of concept study, assessing two doses of IMC-2 vs placebo, are expected in mid-November 2024.

IMC-1 (famciclovir + celecoxib) is ready for Phase 3 development as a combination antiviral treatment for FM. IMC-1 has been granted fast track designation by the FDA for the treatment of FM.
Dogwood is exploring partnerships for IMC-1 to execute the Phase 3 FM program agreed upon by the FDA.

Third Quarter 2024 Financial Results

Research and development expenses increased by $0.2 million for the third quarter of 2024 compared to the third quarter of 2023. The quarter-over-quarter change was primarily due to increases in expenses associated with the grant to BHC for the second proof-of-concept study in LC of $0.3 million offset by a decrease in regulatory expenses of $0.1 million.

General and administrative expenses increased by $0.9 million for the third quarter of 2024 compared to the third quarter of 2023. The quarter-over-quarter change was primarily due to higher legal and professional fees related to the business combination in October 2024 of $1.0 million offset by lower insurance expenses associated with being a public company of $0.1 million.

Net loss for the third quarter of 2024 was $2.3 million, or $2.05 basic and diluted net loss per share, compared to a net loss of $1.2 million, or $1.62 basic and diluted net loss per share for the third quarter of 2023 (as adjusted to reflect the reverse stock split implemented on October 9, 2024).

The Company estimates that its current cash of $2.0 million at September 30, 2024 along with the $16.5 million in loan proceeds received on October 7, 2024 is not sufficient to fund operating expenses and capital requirements for at least the next 12 months. The Company will need to secure the additional $3.0 million of loan proceeds available to us under the terms of the loan agreement in February 2025 to continue to fund our operations through 2025.

About Dogwood Therapeutics

Dogwood Therapeutics DWTX is a development-stage biopharmaceutical company focused on developing new medicines to treat pain and fatigue-related disorders. The Dogwood research pipeline includes two separate mechanistic platforms with a non-opioid analgesic program and an antiviral program. The proprietary non-opioid, Nav 1.7 analgesic program is centered on lead development candidate, Halneuron^® which is a voltage-gated sodium channel blocker, a mechanism known to be effective for reducing pain. Halneuron^® treatment has demonstrated pain reduction of both general cancer related pain and CINP. Interim data from the forthcoming Phase 2 CINP study are expected in 2H 2025. The antiviral program includes IMC-1 and IMC-2, which are novel, proprietary, fixed dose combinations of nucleoside analog, anti-herpes antivirals and the anti-inflammatory agent, celecoxib, for the treatment of illnesses believed to be related to reactivation of previously dormant herpes viruses, including FM and LC. Top-line data from an ongoing IMC-2 Phase 2 LC study are expected in mid-November 2024. IMC-1 is poised to progress into Phase 3 development as a treatment for FM and is the focus of external partnership activities. For more information, please visit www.dwtx.com.

Follow Dogwood Therapeutics

Email Alerts: https://ir.dwtx.com/resources/email-alerts

LinkedIn: https://www.linkedin.com/company/dogwoodther/

Twitter: https://twitter.com/dogwoodther

Facebook: https://www.facebook.com/dogwoodther

Forward-Looking Statements

Statements in this press release contain “forward-looking statements,” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “intend,” “seek,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “suggest,” “target,” “aim,” “should,” “will,” “would,” or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on Dogwood’s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict, including risks related to the completion, timing and results of current and future clinical studies relating to Dogwood’s product candidates. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. These and other risks and uncertainties are described more fully in the section titled “Risk Factors” in the Amended Annual Report on Form 10-K/A for the year ended December 31, 2023 and the Company’s quarterly report on Form 10-Q for the quarterly period ended September 30, 2024, which are filed with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date, and Dogwood undertakes no duty to update such information except as required under applicable law.

Contact:
IR@dwtx.com

DOGWOOD THERAPEUTICS
Selected Financial Data
(unaudited)

Condensed Statements of Operations Data	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Revenue	$	—		$	—		$	—		$	—
Operating expenses:
Research and development		535,162			374,200			1,214,964			1,429,757
General and administrative		1,766,010			900,089			3,470,133			2,879,036
Total operating expenses		2,301,172			1,274,289			4,685,097			4,308,793
Loss from operations		(2,301,172	)		(1,274,289	)		(4,685,097	)		(4,308,793	)
Other Income:
Interest income		20,488			39,215			63,245			115,951
Total Other income		20,488			39,215			63,245			115,951
Net loss	$	(2,280,684	)	$	(1,235,074	)	$	(4,621,852	)	$	(4,192,842	)
Net loss per share of common stock — basic and diluted, as adjusted	$	(2.05	)	$	(1.62	)	$	(4.95	)	$	(5.63	)
Weighted average shares outstanding — basic and diluted, as adjusted		1,110,317			763,750			932,872			774,586

Condensed Balance Sheet Data	September 30,		December 31,
	2024		2023

Cash	$	2,039,819	$	3,316,946
Total assets		2,283,249		4,165,442
Total liabilities		1,333,818		358,548
Total stockholders’ equity		949,431		3,806,894

Source: Dogwood Therapeutics, Inc.

Lastest news News

Sunlands Technology Group to Report Third Quarter 2024 Financial Results on Friday, November 22, 2024

07.11.2024 by admin

BEIJING, Nov. 07, 2024 (GLOBE NEWSWIRE) — Sunlands Technology Group STG (“Sunlands” or the “Company”), a leader in China’s adult online education market and China’s adult personal interest learning market, today announced that it will report its third quarter 2024 unaudited financial results on Friday, November 22, 2024, before the open of U.S. markets.

Sunlands’ management team will host a conference call at 5:30 a.m. U.S. Eastern Time, (6:30 p.m. Beijing/Hong Kong time) on November 22, 2024, following the quarterly results announcement.

For participants who wish to join the call, please access the link provided below to complete online registration 30 minutes prior to the scheduled call start time. Upon registration, participants will receive details for the conference call, including dial-in numbers, a personal PIN and an e-mail with detailed instructions to join the conference call.

Registration Link:

https://register.vevent.com/register/BI723ccaebdbf44e96857bedb8c2c0c81e

Additionally, a live webcast and archive of the conference call will be available on the Investor Relations section of Sunlands’ website at https://ir.sunlands.com/.

About Sunlands

Sunlands Technology Group STG (“Sunlands” or the “Company”), formerly known as Sunlands Online Education Group, is a leader in China’s adult online education market and China’s adult personal interest learning market. With a one to many, live streaming platform, Sunlands offers online professional courses and educational content, including various interest courses, aimed at preparing students for professional certification exams, enhancing their professional skills, and catering to their personal interests, as well as various degree- or diploma-oriented post-secondary courses. Students can access its services either through PC or mobile applications. The Company’s online platform cultivates a personalized, interactive learning environment by featuring a virtual learning community and a vast library of educational content offerings that adapt to the learning habits of its students. Sunlands offers a unique approach to education research and development that organizes subject content into Learning Outcome Trees, the Company’s proprietary knowledge management system. Sunlands has a deep understanding of the educational needs of its prospective students and offers solutions that help them achieve their goals.

For investor and media inquiries, please contact:

Sunlands Technology Group
Investor Relations
Email: sl-ir@sunlands.com

SOURCE: Sunlands Technology Group