| 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 |
) |
|