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Description of Business and Basis of Presentation
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9 Months Ended | ||
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Sep. 30, 2011
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| Description of Business and Basis of Presentation |
Description of Business
Ladenburg
Thalmann Financial Services Inc. (the “Company”) is a
holding company. Its wholly-owned principal operating
subsidiaries are Ladenburg Thalmann & Co. Inc.
(“Ladenburg”), Investacorp, Inc. (collectively with
related companies, “Investacorp”), Triad Advisors, Inc.
(“Triad”), Ladenburg Thalmann Asset Management Inc.
(“LTAM”) and Premier Trust, Inc.
(“Premier”).
Ladenburg
is a full service registered broker-dealer that has been a member
of the New York Stock Exchange since 1879. Broker-dealer activities
include sales and trading and investment
banking. Ladenburg provides its services principally for
middle market and emerging growth companies and high net worth
individuals through a coordinated effort among corporate finance,
capital markets, brokerage and trading professionals.
Investacorp
and Triad are registered broker-dealers and investment advisors
that have been serving the independent financial advisor community
since 1978 and 1998, respectively. Investacorp’s
and Triad’s independent financial advisors primarily serve
retail clients. Investacorp and Triad derive revenue
from advisory fees and commissions, primarily from the sale of
mutual funds, variable annuity products and other financial
products and services.
LTAM
is a registered investment advisor. It offers various asset
management products utilized by Ladenburg and Premier’s
clients, as well as clients of Investacorp’s and
Triad’s financial advisors.
Premier,
acquired on September 1, 2010, is a Nevada trust company formed in
2001. Premier provides wealth management services,
including trust administration of personal and retirement accounts,
estate and financial planning and custody services. Pro forma
results of operations as if Premier was acquired as of January 1,
2010 are not presented because they are not material.
Ladenburg,
Investacorp and Triad customer transactions are cleared through a
single clearing broker on a fully-disclosed basis. Each
of Ladenburg, Investacorp and Triad is subject to regulation by,
among others, the Securities and Exchange Commission
(“SEC”), the Financial Industry Regulatory Authority
and the Municipal Securities Rulemaking Board.
Basis of Presentation
The
condensed consolidated financial statements are unaudited and have
been prepared in accordance with accounting principles generally
accepted in the United States of America (“GAAP”) for
interim financial information and with the instructions to Form
10-Q and Article 10 of Regulation S-X. In the opinion of
management, the interim data includes all adjustments, consisting
of normal recurring adjustments, necessary for a fair statement of
the results for the periods presented. Because of the
nature of the Company’s business, interim period results may
not be indicative of full year or future results.
The
unaudited condensed consolidated financial statements do not
include all information and notes required in annual audited
financial statements in conformity with GAAP. The statement of
financial condition at December 31, 2010 has been derived from the
audited financial statements at that date, but does not include all
of the information and notes required by GAAP for complete
financial statement presentation. Please refer to the notes to the
consolidated financial statements included in the Company’s
annual report on Form 10-K for the year ended December 31,
2010, filed with the SEC, for additional disclosures and a
description of accounting policies.
Certain
prior year items have been reclassified to conform to the current
period’s presentation. All significant
intercompany balances and transactions have been
eliminated.
The
Company has evaluated all subsequent events through the date the
financial statements were issued.
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