Quarterly report pursuant to sections 13 or 15(d)

Segment Information (Tables)

v2.4.0.8
Segment Information (Tables)
9 Months Ended
Sep. 30, 2013
Segment Reporting [Abstract]  
Segment information
Segment information for the three months ended September 30, 2013 and 2012 was as follows:


 

Independent
Brokerage and
Advisory Services
 
Ladenburg
 
Corporate
 
Total
2013
 
 
 
 
 
 
 
Revenues
$
184,085

 
$
16,325

 
$
79

 
$
200,489

Pre-tax income (loss)
4,428

 
2,329

 
(3,799
)
(3) 
2,958

EBITDA, as adjusted(5)
12,819

 
2,697

 
(2,748
)
 
12,768

Identifiable assets
315,401

 
34,526

 
4,908

 
354,835

Depreciation and amortization
3,550

 
214

 
12

 
3,776

Interest
1,906

 
3

 
374

 
2,283

Capital expenditures
823

 
478

 

 
1,301

Non-cash compensation
851

 
163

 
633

 
1,647

 
 
 
 
 
 
 
 
2012

 
 
 
 
 

Revenues
$
149,201

 
$
10,560

 
$
73

 
$
159,834

Pre-tax loss
(2,003
)
 
(317
)
 
(3,309
)
(3) 
(5,629
)
EBITDA, as adjusted(5)
7,701

 
83

 
(1,476
)
 
6,308

Identifiable assets
310,724

 
21,208

 
1,904

 
333,836

Depreciation and amortization
3,759

 
203

 
17

 
3,979

Interest
4,942

 
3

 
1,203

 
6,148

Capital expenditures
853

 
4

 

 
857

Non-cash compensation
244

 
195

 
615

 
1,054

 
 
 
 
 
 
 
 

Segment information for the nine months ended September 30, 2013 and 2012 was as follows:




Independent
Brokerage and
Advisory Services
 
Ladenburg
 
Corporate
 
Total
2013
 
 
 
 
 
 
 
Revenues
$
535,702

(1) 
$
50,890

(1) 
$
(4,929
)
(2) 
$
581,663

Pre-tax income (loss)
4,414

 
9,095

 
(14,825
)
(3)(4) 
(1,316
)
EBITDA, as adjusted(5)
37,562

 
10,268

(4) 
(10,195
)
(4) 
37,635

Identifiable assets
315,401

 
34,526

 
4,908

 
354,835

Depreciation and amortization
10,880

 
626

 
47

 
11,553

Interest
10,830

 
71

 
2,494

 
13,395

Capital expenditures
3,575

 
1,031

 

 
4,606

Non-cash compensation
2,109

 
486

 
1,844

 
4,439

 
 
 
 
 
 
 
 
2012
 
 
 
 
 
 
 
Revenues
$
442,993

 
$
34,758

 
$
183

 
$
477,934

Pre-tax loss
(3,000
)
 
(160
)
 
(9,779
)
(3) 
(12,939
)
EBITDA, as adjusted(5)
22,534

 
1,233

 
(4,505
)
 
19,262

Identifiable assets
310,724

 
21,208

 
1,904

 
333,836

Depreciation and amortization
11,430

 
631

 
51

 
12,112

Interest
14,850

 
75

 
3,475

 
18,400

Capital expenditures
3,631

 
15

 
6

 
3,652

Non-cash compensation
1,210

 
687

 
1,748

 
3,645

 
 
 
 
 
 
 
 

(1)
Includes brokerage commissions of $4,240 and $908 in the Ladenburg and Independent brokerage and advisory services segments, respectively, related to the sale of the Company's Series A Preferred Stock (eliminated in consolidation).

(2)
Includes the elimination of $5,148 of revenue referred to in footnote (1).

(3)
Includes interest on revolving credit and forgivable loan notes, compensation, professional fees and other general and administrative expenses.

(4)
Includes the elimination of $2,545, consisting of $5,148 of revenue net of employee brokerage commission expenses of $2,603 charged to additional paid-in capital related to sale of the Company's Series A Preferred Stock.

(5)
The following table reconciles EBITDA, as adjusted, to pre-tax income (loss) for the three and nine months ended September 30, 2013 and 2012:

 
Three months ended September 30
 
Nine months ended September 30,
 EBITDA, as adjusted
2013
 
2012
 
2013
 
2012
Independent Brokerage and Advisory Services
$
12,819

 
$
7,701

 
$
37,562

 
$
22,534

Ladenburg
2,697

 
83

 
10,268

 
1,233

Corporate
(2,748
)
 
(1,476
)
 
(10,195
)
 
(4,505
)
Total segments
12,768

 
6,308

 
37,635

 
19,262

 
 
 
 
 
 
 
 
Adjustments:
 
 
 
 
 
 
 
Interest income
55

 
47

 
145

 
140

Change in fair value of contingent consideration

 
909

 
(121
)
 
7,111

Loss on extinguishment of debt
(446
)
 

 
(4,200
)
 

Interest expense
(2,283
)
 
(6,148
)
 
(13,395
)
 
(18,400
)
Depreciation and amortization
(3,776
)
 
(3,979
)
 
(11,553
)
 
(12,112
)
Non-cash compensation expense
(1,647
)
 
(1,054
)
 
(4,439
)
 
(3,645
)
Amortization of retention loans
(1,690
)
 
(1,712
)
 
(5,339
)
 
(5,295
)
Loss attributable to noncontrolling interest
(23
)
 

 
(49
)
 

Pre-tax income (loss)
$
2,958

 
$
(5,629
)
 
$
(1,316
)
 
$
(12,939
)
Schedule of reconciliation of EBITDA
The following table reconciles EBITDA, as adjusted, to pre-tax income (loss) for the three and nine months ended September 30, 2013 and 2012:

 
Three months ended September 30
 
Nine months ended September 30,
 EBITDA, as adjusted
2013
 
2012
 
2013
 
2012
Independent Brokerage and Advisory Services
$
12,819

 
$
7,701

 
$
37,562

 
$
22,534

Ladenburg
2,697

 
83

 
10,268

 
1,233

Corporate
(2,748
)
 
(1,476
)
 
(10,195
)
 
(4,505
)
Total segments
12,768

 
6,308

 
37,635

 
19,262

 
 
 
 
 
 
 
 
Adjustments:
 
 
 
 
 
 
 
Interest income
55

 
47

 
145

 
140

Change in fair value of contingent consideration

 
909

 
(121
)
 
7,111

Loss on extinguishment of debt
(446
)
 

 
(4,200
)
 

Interest expense
(2,283
)
 
(6,148
)
 
(13,395
)
 
(18,400
)
Depreciation and amortization
(3,776
)
 
(3,979
)
 
(11,553
)
 
(12,112
)
Non-cash compensation expense
(1,647
)
 
(1,054
)
 
(4,439
)
 
(3,645
)
Amortization of retention loans
(1,690
)
 
(1,712
)
 
(5,339
)
 
(5,295
)
Loss attributable to noncontrolling interest
(23
)
 

 
(49
)
 

Pre-tax income (loss)
$
2,958

 
$
(5,629
)
 
$
(1,316
)
 
$
(12,939
)