| Segment information |
Segment information for the three months ended June 30, 2014 and 2013 was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent
Brokerage and
Advisory Services
|
|
Ladenburg |
|
Corporate |
|
Total |
2014 |
|
|
|
|
|
|
|
Revenues |
$ |
202,855 |
|
|
$ |
17,818 |
|
|
$ |
80 |
|
|
$ |
220,753 |
|
Pre-tax income (loss) |
3,676 |
|
|
3,412 |
|
|
(3,398 |
) |
(2) |
3,690 |
|
EBITDA, as adjusted(6)
|
11,487 |
|
|
3,735 |
|
|
(1,885 |
) |
|
13,337 |
|
Identifiable assets |
313,085 |
|
|
43,692 |
|
|
42,135 |
|
|
398,912 |
|
Depreciation and amortization |
3,611 |
|
|
173 |
|
|
3 |
|
|
3,787 |
|
Interest |
1,281 |
|
|
3 |
|
|
315 |
|
|
1,599 |
|
Capital expenditures |
2,243 |
|
|
483 |
|
|
(38 |
) |
|
2,688 |
|
Non-cash compensation |
1,194 |
|
|
153 |
|
|
736 |
|
|
2,083 |
|
|
|
|
|
|
|
|
|
2013 |
|
|
|
|
|
|
|
Revenues |
$ |
181,780 |
|
(4) |
$ |
17,165 |
|
(4) |
$ |
(5,076 |
) |
(5) |
$ |
193,869 |
|
Pre-tax (loss) income(3)
|
(1,478 |
) |
|
2,839 |
|
|
(6,281 |
) |
(1)(2) |
(4,920 |
) |
EBITDA, as adjusted(3)(6)
|
12,210 |
|
|
3,277 |
|
(1) |
(4,580 |
) |
(1) |
10,907 |
|
Identifiable assets |
312,075 |
|
|
37,405 |
|
|
7,133 |
|
|
356,613 |
|
Depreciation and amortization |
3,646 |
|
|
206 |
|
|
18 |
|
|
3,870 |
|
Interest |
3,969 |
|
|
65 |
|
|
842 |
|
|
4,876 |
|
Capital expenditures |
1,655 |
|
|
470 |
|
|
— |
|
|
2,125 |
|
Non-cash compensation |
590 |
|
|
167 |
|
|
622 |
|
|
1,379 |
|
|
|
|
|
|
|
|
|
Segment information for the six months ended June 30, 2014 and 2013 was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent
Brokerage and
Advisory Services
|
|
Ladenburg |
|
Corporate |
|
Total |
2014 |
|
|
|
|
|
|
|
Revenues |
$ |
391,257 |
|
|
$ |
41,155 |
|
|
$ |
159 |
|
|
$ |
432,571 |
|
Pre-tax income (loss) |
5,741 |
|
|
9,776 |
|
|
(6,970 |
) |
(2) |
8,547 |
|
EBITDA, as adjusted(6)
|
21,949 |
|
|
10,390 |
|
|
(4,429 |
) |
|
27,910 |
|
Identifiable assets |
313,085 |
|
|
43,692 |
|
|
42,135 |
|
|
398,912 |
|
Depreciation and amortization |
7,311 |
|
|
311 |
|
|
3 |
|
|
7,625 |
|
Interest |
2,854 |
|
|
7 |
|
|
631 |
|
|
3,492 |
|
Capital expenditures |
3,691 |
|
|
926 |
|
|
108 |
|
|
4,725 |
|
Non-cash compensation |
2,273 |
|
|
305 |
|
|
1,432 |
|
|
4,010 |
|
|
|
|
|
|
|
|
|
2013 |
|
|
|
|
|
|
|
Revenues |
$ |
351,617 |
|
(4) |
$ |
34,565 |
|
(4) |
$ |
(5,008 |
) |
(5) |
$ |
381,174 |
|
Pre-tax (loss) income(3)
|
(473 |
) |
|
6,678 |
|
|
(10,479 |
) |
(1)(2) |
(4,274 |
) |
EBITDA, as adjusted(3)(6)
|
24,282 |
|
|
7,481 |
|
(1) |
(6,896 |
) |
(1) |
24,867 |
|
Identifiable assets |
312,075 |
|
|
37,405 |
|
|
7,133 |
|
|
356,613 |
|
Depreciation and amortization |
7,330 |
|
|
412 |
|
|
35 |
|
|
7,777 |
|
Interest |
8,925 |
|
|
68 |
|
|
2,119 |
|
|
11,112 |
|
Capital expenditures |
2,485 |
|
|
552 |
|
|
— |
|
|
3,037 |
|
Non-cash compensation |
1,258 |
|
|
323 |
|
|
1,211 |
|
|
2,792 |
|
|
|
|
|
|
|
|
|
|
|
(1) |
Includes the elimination of $2,545, consisting of $5,148 of revenue net of employee brokerage commission expenses of $2,603 related to sale of the Company's Series A Preferred Stock.
|
|
|
(2) |
Includes interest on revolving credit and forgivable loan notes, compensation, professional fees and other general and administrative expenses. |
|
|
(3) |
Management fees paid by the Company's operating segments to the Company have been reclassified within segments to conform to the current period’s presentation. |
|
|
(4) |
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).
|
|
|
(5) |
Includes the elimination of $5,148 of revenue referred to in (1).
|
|
|
(6) |
The following table reconciles EBITDA, as adjusted, to pre-tax income (loss) for the three and six months ended June 30, 2014 and 2013: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
EBITDA, as adjusted |
2014 |
|
2013 |
|
2014 |
|
2013 |
Independent Brokerage and Advisory Services |
$ |
11,487 |
|
|
$ |
12,210 |
|
|
21,949 |
|
|
$ |
24,282 |
|
Ladenburg |
3,735 |
|
|
3,277 |
|
|
10,390 |
|
|
7,481 |
|
Corporate |
(1,885 |
) |
|
(4,580 |
) |
|
(4,429 |
) |
|
(6,896 |
) |
Total Segments |
13,337 |
|
|
10,907 |
|
|
27,910 |
|
|
24,867 |
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
Interest Income |
83 |
|
|
50 |
|
|
136 |
|
|
90 |
|
Change in fair value of contingent consideration |
— |
|
|
(144 |
) |
|
12 |
|
|
(121 |
) |
Loss on extinguishment of debt |
— |
|
|
(3,754 |
) |
|
(314 |
) |
|
(3,754 |
) |
Interest expense |
(1,599 |
) |
|
(4,876 |
) |
|
(3,492 |
) |
|
(11,112 |
) |
Depreciation and amortization |
(3,787 |
) |
|
(3,870 |
) |
|
(7,625 |
) |
|
(7,777 |
) |
Non-cash compensation expense |
(2,083 |
) |
|
(1,379 |
) |
|
(4,010 |
) |
|
(2,792 |
) |
Amortization of retention loans |
(1,782 |
) |
|
(1,841 |
) |
|
(3,570 |
) |
|
(3,649 |
) |
Acquisition-related expenses |
(458 |
) |
|
— |
|
|
(458 |
) |
|
— |
|
Net loss attributable to noncontrolling interest |
(21 |
) |
|
(13 |
) |
|
(42 |
) |
|
(26 |
) |
Pre-tax income (loss) |
$ |
3,690 |
|
|
$ |
(4,920 |
) |
|
$ |
8,547 |
|
|
$ |
(4,274 |
) |
|
| Schedule of reconciliation of EBITDA |
The following table reconciles EBITDA, as adjusted, to pre-tax income (loss) for the three and six months ended June 30, 2014 and 2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
EBITDA, as adjusted |
2014 |
|
2013 |
|
2014 |
|
2013 |
Independent Brokerage and Advisory Services |
$ |
11,487 |
|
|
$ |
12,210 |
|
|
21,949 |
|
|
$ |
24,282 |
|
Ladenburg |
3,735 |
|
|
3,277 |
|
|
10,390 |
|
|
7,481 |
|
Corporate |
(1,885 |
) |
|
(4,580 |
) |
|
(4,429 |
) |
|
(6,896 |
) |
Total Segments |
13,337 |
|
|
10,907 |
|
|
27,910 |
|
|
24,867 |
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
Interest Income |
83 |
|
|
50 |
|
|
136 |
|
|
90 |
|
Change in fair value of contingent consideration |
— |
|
|
(144 |
) |
|
12 |
|
|
(121 |
) |
Loss on extinguishment of debt |
— |
|
|
(3,754 |
) |
|
(314 |
) |
|
(3,754 |
) |
Interest expense |
(1,599 |
) |
|
(4,876 |
) |
|
(3,492 |
) |
|
(11,112 |
) |
Depreciation and amortization |
(3,787 |
) |
|
(3,870 |
) |
|
(7,625 |
) |
|
(7,777 |
) |
Non-cash compensation expense |
(2,083 |
) |
|
(1,379 |
) |
|
(4,010 |
) |
|
(2,792 |
) |
Amortization of retention loans |
(1,782 |
) |
|
(1,841 |
) |
|
(3,570 |
) |
|
(3,649 |
) |
Acquisition-related expenses |
(458 |
) |
|
— |
|
|
(458 |
) |
|
— |
|
Net loss attributable to noncontrolling interest |
(21 |
) |
|
(13 |
) |
|
(42 |
) |
|
(26 |
) |
Pre-tax income (loss) |
$ |
3,690 |
|
|
$ |
(4,920 |
) |
|
$ |
8,547 |
|
|
$ |
(4,274 |
) |
|