| Segment information |
Segment information for the three months ended September 30, 2014 and 2013 was as follows:
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Independent
Brokerage and
Advisory Services
|
|
Ladenburg |
|
Insurance Brokerage
|
|
Corporate |
|
Total |
2014 |
|
|
|
|
|
|
|
|
|
Revenues |
$ |
197,730 |
|
|
$ |
16,675 |
|
|
$ |
9,242 |
|
|
$ |
85 |
|
|
$ |
223,732 |
|
Pre-tax income (loss) |
1,186 |
|
|
3,400 |
|
|
(742 |
) |
|
(4,415 |
) |
(2) |
(571 |
) |
EBITDA, as adjusted(7)
|
10,369 |
|
|
3,734 |
|
|
386 |
|
|
(2,429 |
) |
|
12,060 |
|
Identifiable assets |
314,083 |
|
|
72,190 |
|
(6) |
62,812 |
|
|
44,247 |
|
|
493,332 |
|
Depreciation and amortization |
3,771 |
|
|
176 |
|
|
952 |
|
|
3 |
|
|
4,902 |
|
Interest |
1,267 |
|
|
11 |
|
|
118 |
|
|
305 |
|
|
1,701 |
|
Capital expenditures |
1,114 |
|
|
— |
|
|
48 |
|
|
— |
|
|
1,162 |
|
Non-cash compensation |
2,640 |
|
|
153 |
|
|
58 |
|
|
828 |
|
|
3,679 |
|
|
|
|
|
|
|
|
|
|
|
2013 |
|
|
|
|
|
|
|
|
|
Revenues |
$ |
184,085 |
|
|
$ |
16,325 |
|
|
$ |
— |
|
|
$ |
79 |
|
|
$ |
200,489 |
|
Pre-tax (loss) income(3)
|
4,199 |
|
|
2,284 |
|
|
— |
|
|
(3,525 |
) |
(2) |
2,958 |
|
EBITDA, as adjusted(3)(7)
|
12,592 |
|
|
2,654 |
|
|
— |
|
|
(2,478 |
) |
|
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 |
1,090 |
|
|
479 |
|
|
— |
|
|
— |
|
|
1,569 |
|
Non-cash compensation |
851 |
|
|
163 |
|
|
— |
|
|
633 |
|
|
1,647 |
|
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|
|
|
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|
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|
Segment information for the nine months ended September 30, 2014 and 2013 was as follows:
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|
Independent
Brokerage and
Advisory Services
|
|
Ladenburg |
|
Insurance Brokerage
|
|
Corporate |
|
Total |
2014 |
|
|
|
|
|
|
|
|
|
Revenues |
$ |
588,987 |
|
|
$ |
57,830 |
|
|
$ |
9,242 |
|
|
$ |
244 |
|
|
$ |
656,303 |
|
Pre-tax income (loss) |
6,927 |
|
|
13,176 |
|
|
(742 |
) |
|
(11,385 |
) |
(2) |
7,976 |
|
EBITDA, as adjusted(7)
|
32,318 |
|
|
14,123 |
|
|
386 |
|
|
(6,857 |
) |
|
39,970 |
|
Identifiable assets |
314,083 |
|
|
72,190 |
|
(6) |
62,812 |
|
|
44,247 |
|
|
493,332 |
|
Depreciation and amortization |
11,082 |
|
|
486 |
|
|
952 |
|
|
7 |
|
|
12,527 |
|
Interest |
4,121 |
|
|
18 |
|
|
118 |
|
|
936 |
|
|
5,193 |
|
Capital expenditures |
4,805 |
|
|
926 |
|
|
48 |
|
|
108 |
|
|
5,887 |
|
Non-cash compensation |
4,913 |
|
|
458 |
|
|
58 |
|
|
2,260 |
|
|
7,689 |
|
|
|
|
|
|
|
|
|
|
|
2013 |
|
|
|
|
|
|
|
|
|
Revenues |
$ |
535,702 |
|
(4) |
$ |
50,890 |
|
(4) |
$ |
— |
|
|
$ |
(4,929 |
) |
(5) |
$ |
581,663 |
|
Pre-tax (loss) income(3)
|
3,726 |
|
|
8,962 |
|
|
— |
|
|
(14,004 |
) |
(1)(2) |
(1,316 |
) |
EBITDA, as adjusted(3)(7)
|
36,874 |
|
|
10,135 |
|
(1) |
— |
|
|
(9,374 |
) |
(1) |
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 |
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|
(1) |
Includes the elimination of $2,545, consisting of $5,148 of revenue net of employee brokerage commission expenses of $2,603 related to sales of the Company's Series A Preferred Stock.
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(2) |
Includes interest on revolving credit and forgivable loan notes, compensation, professional fees and other general and administrative expenses. |
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(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. |
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(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).
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(5) |
Includes the elimination of $5,148 of revenue referred to in (1).
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(6) |
Includes a temporary subordinated loan of $25,000 made to Ladenburg from Corporate and repaid on October 7, 2014.
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(7) |
The following table reconciles EBITDA, as adjusted, to pre-tax income (loss) for the three and nine months ended September 30, 2014 and 2013: |
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|
Three months ended September 30, |
|
Nine months ended September 30, |
EBITDA, as adjusted |
2014 |
|
2013 |
|
2014 |
|
2013 |
Independent Brokerage and Advisory Services |
$ |
10,369 |
|
|
$ |
12,592 |
|
|
$ |
32,318 |
|
|
$ |
36,874 |
|
Ladenburg |
3,734 |
|
|
2,654 |
|
|
14,123 |
|
|
10,135 |
|
Insurance Brokerage |
386 |
|
|
— |
|
|
386 |
|
|
— |
|
Corporate |
(2,429 |
) |
|
(2,478 |
) |
|
(6,857 |
) |
|
(9,374 |
) |
Total Segments |
12,060 |
|
|
12,768 |
|
|
39,970 |
|
|
37,635 |
|
|
|
|
|
|
|
|
|
Adjustments: |
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|
|
|
|
Interest income |
59 |
|
|
55 |
|
|
195 |
|
|
145 |
|
Change in fair value of contingent consideration |
— |
|
|
— |
|
|
12 |
|
|
(121 |
) |
Loss on extinguishment of debt |
— |
|
|
(446 |
) |
|
(314 |
) |
|
(4,200 |
) |
Interest expense |
(1,701 |
) |
|
(2,283 |
) |
|
(5,193 |
) |
|
(13,395 |
) |
Depreciation and amortization |
(4,902 |
) |
|
(3,776 |
) |
|
(12,527 |
) |
|
(11,553 |
) |
Non-cash compensation expense |
(3,679 |
) |
|
(1,647 |
) |
|
(7,689 |
) |
|
(4,439 |
) |
Amortization of retention loans |
(1,538 |
) |
|
(1,690 |
) |
|
(5,108 |
) |
|
(5,339 |
) |
Acquisition-related expenses |
(850 |
) |
|
— |
|
|
(1,308 |
) |
|
— |
|
Net loss attributable to noncontrolling interest |
(20 |
) |
|
(23 |
) |
|
(62 |
) |
|
(49 |
) |
Pre-tax income (loss) |
$ |
(571 |
) |
|
$ |
2,958 |
|
|
$ |
7,976 |
|
|
$ |
(1,316 |
) |
|
| 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, 2014 and 2013:
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|
|
|
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|
|
|
Three months ended September 30, |
|
Nine months ended September 30, |
EBITDA, as adjusted |
2014 |
|
2013 |
|
2014 |
|
2013 |
Independent Brokerage and Advisory Services |
$ |
10,369 |
|
|
$ |
12,592 |
|
|
$ |
32,318 |
|
|
$ |
36,874 |
|
Ladenburg |
3,734 |
|
|
2,654 |
|
|
14,123 |
|
|
10,135 |
|
Insurance Brokerage |
386 |
|
|
— |
|
|
386 |
|
|
— |
|
Corporate |
(2,429 |
) |
|
(2,478 |
) |
|
(6,857 |
) |
|
(9,374 |
) |
Total Segments |
12,060 |
|
|
12,768 |
|
|
39,970 |
|
|
37,635 |
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
Interest income |
59 |
|
|
55 |
|
|
195 |
|
|
145 |
|
Change in fair value of contingent consideration |
— |
|
|
— |
|
|
12 |
|
|
(121 |
) |
Loss on extinguishment of debt |
— |
|
|
(446 |
) |
|
(314 |
) |
|
(4,200 |
) |
Interest expense |
(1,701 |
) |
|
(2,283 |
) |
|
(5,193 |
) |
|
(13,395 |
) |
Depreciation and amortization |
(4,902 |
) |
|
(3,776 |
) |
|
(12,527 |
) |
|
(11,553 |
) |
Non-cash compensation expense |
(3,679 |
) |
|
(1,647 |
) |
|
(7,689 |
) |
|
(4,439 |
) |
Amortization of retention loans |
(1,538 |
) |
|
(1,690 |
) |
|
(5,108 |
) |
|
(5,339 |
) |
Acquisition-related expenses |
(850 |
) |
|
— |
|
|
(1,308 |
) |
|
— |
|
Net loss attributable to noncontrolling interest |
(20 |
) |
|
(23 |
) |
|
(62 |
) |
|
(49 |
) |
Pre-tax income (loss) |
$ |
(571 |
) |
|
$ |
2,958 |
|
|
$ |
7,976 |
|
|
$ |
(1,316 |
) |
|