| Segment information |
Segment information for the three and nine months ended September 30, 2015 and 2014 was as follows:
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Three Months Ended September 30, 2015 |
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Independent
Brokerage and
Advisory Services
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Ladenburg |
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Insurance Brokerage |
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Corporate |
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Total |
Revenues |
|
$ |
256,671 |
|
|
$ |
13,248 |
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|
$ |
12,210 |
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|
$ |
85 |
|
|
$ |
282,214 |
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Income (loss) before income taxes |
|
3,141 |
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|
(144 |
) |
|
(1,585 |
) |
|
(4,561 |
) |
(1) |
(3,149 |
) |
EBITDA, as adjusted(4)
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10,925 |
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|
98 |
|
|
417 |
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(3,080 |
) |
|
8,360 |
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Identifiable assets(2)
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400,290 |
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|
44,053 |
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|
63,522 |
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|
55,425 |
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(3) |
563,290 |
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Depreciation and amortization |
|
4,834 |
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|
178 |
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|
1,769 |
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17 |
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|
6,798 |
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Interest |
|
834 |
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— |
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|
172 |
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|
249 |
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|
1,255 |
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Capital expenditures |
|
1,646 |
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|
51 |
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|
188 |
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— |
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|
1,885 |
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Non-cash compensation |
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(914 |
) |
|
151 |
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60 |
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|
945 |
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|
242 |
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Three Months Ended September 30, 2014 |
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Revenues |
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$ |
197,730 |
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$ |
16,675 |
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$ |
9,242 |
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$ |
85 |
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$ |
223,732 |
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Income (loss) before income taxes |
|
1,186 |
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|
3,400 |
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(742 |
) |
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(4,415 |
) |
(1) |
(571 |
) |
EBITDA, as adjusted(4)
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|
11,656 |
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|
3,734 |
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|
386 |
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(2,429 |
) |
|
13,347 |
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Identifiable assets(2)
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314,083 |
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|
72,190 |
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|
62,812 |
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|
44,247 |
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(3) |
493,332 |
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Depreciation and amortization |
|
3,771 |
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|
176 |
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|
952 |
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|
3 |
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|
4,902 |
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Interest |
|
1,267 |
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|
11 |
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|
118 |
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|
305 |
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|
1,701 |
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Capital expenditures |
|
1,114 |
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— |
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|
48 |
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— |
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|
1,162 |
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Non-cash compensation |
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2,640 |
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|
153 |
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|
58 |
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|
828 |
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|
3,679 |
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Nine Months Ended September 30, 2015 |
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Independent
Brokerage and
Advisory Services
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Ladenburg |
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Insurance Brokerage |
(5) |
Corporate |
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Total |
Revenues |
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$ |
777,009 |
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$ |
44,806 |
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$ |
35,680 |
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$ |
290 |
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$ |
857,785 |
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Income (loss) before income taxes |
|
4,562 |
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|
2,420 |
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|
(5,628 |
) |
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(12,628 |
) |
(1) |
(11,274 |
) |
EBITDA, as adjusted(4)
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33,677 |
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|
4,765 |
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|
203 |
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(7,967 |
) |
|
30,678 |
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Identifiable assets(2)
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400,290 |
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|
44,053 |
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|
63,522 |
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|
55,425 |
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(3) |
563,290 |
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Depreciation and amortization |
|
14,377 |
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|
528 |
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|
5,141 |
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|
34 |
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|
20,080 |
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Interest |
|
2,713 |
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|
7 |
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|
511 |
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|
739 |
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|
3,970 |
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Capital expenditures |
|
5,849 |
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|
87 |
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|
652 |
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|
86 |
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|
6,674 |
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Non-cash compensation |
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2,191 |
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|
486 |
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|
179 |
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|
3,070 |
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|
5,926 |
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Nine Months Ended September 30, 2014 |
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Revenues |
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$ |
588,987 |
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$ |
57,830 |
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$ |
9,242 |
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$ |
244 |
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$ |
656,303 |
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Income (loss) before income taxes |
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6,927 |
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|
13,176 |
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(742 |
) |
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(11,385 |
) |
(1) |
7,976 |
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EBITDA, as adjusted(4)
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36,243 |
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|
14,123 |
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|
386 |
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(6,857 |
) |
|
43,895 |
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Identifiable assets(2)
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314,083 |
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72,190 |
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62,812 |
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|
44,247 |
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(3) |
493,332 |
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Depreciation and amortization |
|
11,082 |
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|
486 |
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|
952 |
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7 |
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12,527 |
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Interest |
|
4,121 |
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18 |
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|
118 |
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|
936 |
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|
5,193 |
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Capital expenditures |
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4,805 |
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|
926 |
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48 |
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|
108 |
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|
5,887 |
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Non-cash compensation |
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4,913 |
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|
458 |
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58 |
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2,260 |
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7,689 |
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(1) |
Includes interest expense, compensation, professional fees and other general and administrative expenses. |
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(2) |
Identifiable assets are presented as of the end of the period. |
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(3) |
Includes cash and cash equivalents of $53,399 and $42,421 as of September 30, 2015 and 2014, respectively.
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(4) |
The following table reconciles EBITDA, as adjusted, to (loss) income before income taxes for the three and nine months ended September 30, 2015 and 2014. |
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(5) |
Represents operations of Highland, which was acquired in July 2014. |
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Three Months Ended
September 30, |
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Nine Months Ended September 30, |
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EBITDA, as adjusted |
2015 |
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2014 |
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2015 |
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2014 |
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Independent Brokerage and Advisory Services |
$ |
10,925 |
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$ |
11,656 |
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$ |
33,677 |
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$ |
36,243 |
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Ladenburg |
98 |
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3,734 |
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4,765 |
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|
14,123 |
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Insurance Brokerage |
417 |
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|
386 |
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|
203 |
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|
386 |
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Corporate |
(3,080 |
) |
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(2,429 |
) |
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(7,967 |
) |
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(6,857 |
) |
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Total Segments |
8,360 |
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13,347 |
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(1) |
30,678 |
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|
43,895 |
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(1) |
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Adjustments: |
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Interest income |
69 |
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|
59 |
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|
178 |
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|
195 |
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Change in fair value of contingent consideration |
— |
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— |
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31 |
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12 |
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Loss on extinguishment of debt |
— |
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— |
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(252 |
) |
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(314 |
) |
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Interest expense |
(1,255 |
) |
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(1,701 |
) |
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(3,970 |
) |
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(5,193 |
) |
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Depreciation and amortization |
(6,798 |
) |
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(4,902 |
) |
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(20,080 |
) |
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(12,527 |
) |
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Non-cash compensation expense |
(242 |
) |
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(3,679 |
) |
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(5,926 |
) |
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(7,689 |
) |
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Financial advisor recruiting expense |
(764 |
) |
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(354 |
) |
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(1,670 |
) |
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(889 |
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Amortization of retention and forgivable loans |
(2,223 |
) |
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(2,471 |
) |
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(7,831 |
) |
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(8,144 |
) |
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Acquisition-related expense |
(139 |
) |
|
(850 |
) |
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(257 |
) |
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(1,308 |
) |
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Other |
(146 |
) |
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— |
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(2,136 |
) |
(2) |
— |
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Net loss attributable to noncontrolling interest |
(11 |
) |
|
(20 |
) |
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(39 |
) |
|
(62 |
) |
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(Loss) income before income taxes |
$ |
(3,149 |
) |
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$ |
(571 |
) |
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$ |
(11,274 |
) |
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$ |
7,976 |
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(1) Includes increases of $1,287 and $3,925 for the three and nine months ended September 30, 2014, respectively, related to amortization of forgivable loans and financial advisor recruiting expenses to conform to the 2015 presentation.
(2) Includes loss on write-off of receivable from subtenant of $855 for the nine months ended September 30, 2015, rent expense due to default by subtenant of $468 for the nine months ended September 30, 2015, and excise and franchise tax expense of $263 for the nine months ended September 30, 2015.
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