| Segment information |
Segment information for the years ended December 31, 2013, 2012 and 2011 is as follows:
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Independent Brokerage and Advisory Services (5)
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Ladenburg |
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Corporate |
|
Total |
2013 |
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|
|
|
Revenues |
|
$ |
723,246 |
|
(1) |
$ |
69,603 |
|
(1) |
$ |
267 |
|
(2) |
$ |
793,116 |
|
Pre-tax income (loss) |
|
4,850 |
|
|
11,689 |
|
|
(14,135 |
) |
(3)(4) |
2,404 |
|
EBITDA, as adjusted (6)
|
|
46,971 |
|
|
13,188 |
|
(4) |
(8,534 |
) |
(4) |
51,625 |
|
Identifiable assets |
|
320,239 |
|
|
33,950 |
|
|
6,631 |
|
|
360,820 |
|
Depreciation and amortization |
|
14,475 |
|
|
791 |
|
|
49 |
|
|
15,315 |
|
Interest |
|
12,527 |
|
|
75 |
|
|
2,836 |
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|
15,438 |
|
Capital expenditures |
|
4,898 |
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|
1,963 |
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|
— |
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|
6,861 |
|
Non-cash compensation |
|
3,667 |
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|
646 |
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|
2,453 |
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|
6,766 |
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2012 |
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Revenues |
|
$ |
598,851 |
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|
$ |
45,701 |
|
|
$ |
5,559 |
|
|
$ |
650,111 |
|
Pre-tax (loss) income |
|
(6,087 |
) |
|
65 |
|
|
(8,870 |
) |
(3) |
(14,892 |
) |
EBITDA, as adjusted (6)
|
|
30,566 |
|
|
1,829 |
|
|
(1,891 |
) |
|
30,504 |
|
Identifiable assets |
|
318,005 |
|
|
17,636 |
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|
2,488 |
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|
338,129 |
|
Depreciation and amortization |
|
15,158 |
|
|
835 |
|
|
68 |
|
|
16,061 |
|
Interest |
|
19,803 |
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|
79 |
|
|
4,659 |
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|
24,541 |
|
Capital expenditures |
|
5,356 |
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|
115 |
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|
6 |
|
|
5,477 |
|
Non-cash compensation |
|
1,640 |
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|
850 |
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|
2,254 |
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|
4,744 |
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2011 |
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Revenues |
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$ |
230,897 |
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$ |
41,459 |
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|
$ |
1,244 |
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|
$ |
273,600 |
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Pre-tax income (loss) |
|
1,787 |
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|
(3,131 |
) |
|
(10,958 |
) |
(3) |
(12,302 |
) |
EBITDA, as adjusted (6)
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|
12,181 |
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|
(1,032 |
) |
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(2,727 |
) |
|
8,422 |
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Identifiable assets |
|
322,245 |
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|
18,437 |
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|
6,463 |
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|
347,145 |
|
Depreciation and amortization |
|
4,567 |
|
|
996 |
|
|
69 |
|
|
5,632 |
|
Interest |
|
3,191 |
|
|
89 |
|
|
3,263 |
|
|
6,543 |
|
Capital expenditures |
|
1,381 |
|
|
58 |
|
|
— |
|
|
1,439 |
|
Non-cash compensation |
|
1,072 |
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|
1,014 |
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|
1,928 |
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|
4,014 |
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(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).
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(2) |
Includes the elimination of $5,148 of revenue referred to in footnote (1).
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(3) |
Includes interest on revolving credit and forgivable loan notes, compensation, professional fees and other general and administrative expenses. |
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(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.
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(5) |
Includes Securities America from November 4, 2011. |
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(6) |
The following table reconciles EBITDA, as adjusted, to pre-tax income (loss) for the years ended December 31, 2013, 2012 and 2011: |
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Year Ended December 31, |
EBITDA, as adjusted |
|
2013 |
|
2012 |
|
2011 |
Independent Brokerage and Advisory Services |
|
$ |
46,971 |
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|
$ |
30,566 |
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|
$ |
12,181 |
|
Ladenburg |
|
13,188 |
|
|
1,829 |
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|
(1,032 |
) |
Corporate |
|
(8,534 |
) |
|
(1,891 |
) |
|
(2,727 |
) |
Total segments |
|
51,625 |
|
|
30,504 |
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|
8,422 |
|
Adjustments: |
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|
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|
Interest income |
|
194 |
|
|
185 |
|
|
70 |
|
Change in fair value of contingent consideration |
|
(121 |
) |
|
7,111 |
|
|
— |
|
Loss on extinguishment of debt |
|
(4,547 |
) |
|
— |
|
|
— |
|
Interest expense |
|
(15,438 |
) |
|
(24,541 |
) |
|
(6,543 |
) |
Depreciation and amortization |
|
(15,315 |
) |
|
(16,061 |
) |
|
(5,632 |
) |
Non-cash compensation expense |
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(6,766 |
) |
|
(4,744 |
) |
|
(4,014 |
) |
Amortization of retention loans |
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(7,160 |
) |
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(7,346 |
) |
|
(1,634 |
) |
Acquisition-related expense |
|
— |
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— |
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|
(2,971 |
) |
Loss attributable to noncontrolling interest |
|
(68 |
) |
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— |
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|
— |
|
Pre-tax income (loss) |
|
$ |
2,404 |
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|
$ |
(14,892 |
) |
|
$ |
(12,302 |
) |
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| Schedule of reconciliation of EBITDA |
The following table reconciles EBITDA, as adjusted, to pre-tax income (loss) for the years ended December 31, 2013, 2012 and 2011:
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Year Ended December 31, |
EBITDA, as adjusted |
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2013 |
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2012 |
|
2011 |
Independent Brokerage and Advisory Services |
|
$ |
46,971 |
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$ |
30,566 |
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$ |
12,181 |
|
Ladenburg |
|
13,188 |
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|
1,829 |
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|
(1,032 |
) |
Corporate |
|
(8,534 |
) |
|
(1,891 |
) |
|
(2,727 |
) |
Total segments |
|
51,625 |
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|
30,504 |
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|
8,422 |
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Adjustments: |
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|
Interest income |
|
194 |
|
|
185 |
|
|
70 |
|
Change in fair value of contingent consideration |
|
(121 |
) |
|
7,111 |
|
|
— |
|
Loss on extinguishment of debt |
|
(4,547 |
) |
|
— |
|
|
— |
|
Interest expense |
|
(15,438 |
) |
|
(24,541 |
) |
|
(6,543 |
) |
Depreciation and amortization |
|
(15,315 |
) |
|
(16,061 |
) |
|
(5,632 |
) |
Non-cash compensation expense |
|
(6,766 |
) |
|
(4,744 |
) |
|
(4,014 |
) |
Amortization of retention loans |
|
(7,160 |
) |
|
(7,346 |
) |
|
(1,634 |
) |
Acquisition-related expense |
|
— |
|
|
— |
|
|
(2,971 |
) |
Loss attributable to noncontrolling interest |
|
(68 |
) |
|
— |
|
|
— |
|
Pre-tax income (loss) |
|
$ |
2,404 |
|
|
$ |
(14,892 |
) |
|
$ |
(12,302 |
) |
|