| Segment Information |
Segment information for the three and nine months ended September 30, 2016 and 2015 was as follows:
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Three Months Ended September 30, 2016 |
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Independent
Brokerage and
Advisory Services
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|
Ladenburg |
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Insurance Brokerage |
|
Corporate |
|
Total |
Revenues |
|
$ |
251,045 |
|
|
$ |
10,424 |
|
|
$ |
12,680 |
|
|
$ |
174 |
|
|
$ |
274,323 |
|
Income (loss) before income taxes |
|
607 |
|
|
(1,959 |
) |
|
(1,611 |
) |
|
(3,948 |
) |
(1) |
(6,911 |
) |
EBITDA, as adjusted (4)
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|
9,503 |
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|
(1,604 |
) |
|
462 |
|
|
(2,797 |
) |
|
5,564 |
|
Identifiable assets (2)
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|
411,577 |
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|
33,046 |
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|
54,301 |
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|
44,832 |
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(3) |
543,756 |
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Depreciation and amortization |
|
5,008 |
|
|
185 |
|
|
1,804 |
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|
17 |
|
|
7,014 |
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Interest |
|
795 |
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|
4 |
|
|
170 |
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|
164 |
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|
1,133 |
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Capital expenditures |
|
1,267 |
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|
19 |
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|
12 |
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|
— |
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|
1,298 |
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Non-cash compensation |
|
253 |
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|
135 |
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|
61 |
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|
851 |
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|
1,300 |
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Three Months Ended September 30, 2015 |
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Revenues |
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$ |
256,671 |
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$ |
13,248 |
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$ |
12,210 |
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|
$ |
85 |
|
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$ |
282,214 |
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Income (loss) before income taxes |
|
3,141 |
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|
(144 |
) |
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(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 |
|
|
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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Nine Months Ended September 30, 2016 |
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Independent
Brokerage and
Advisory Services
|
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Ladenburg |
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Insurance Brokerage |
|
Corporate |
|
Total |
Revenues |
|
$ |
738,429 |
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$ |
33,457 |
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$ |
37,422 |
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|
$ |
586 |
|
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$ |
809,894 |
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Income (loss) before income taxes |
|
7,291 |
|
|
(6,071 |
) |
|
(4,963 |
) |
|
(11,129 |
) |
(1) |
(14,872 |
) |
EBITDA, as adjusted (4)
|
|
32,222 |
|
|
(4,862 |
) |
|
1,294 |
|
|
(7,505 |
) |
|
21,149 |
|
Identifiable assets (2)
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|
411,577 |
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|
33,046 |
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|
54,301 |
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|
44,832 |
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(3) |
543,756 |
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Depreciation and amortization |
|
15,173 |
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|
546 |
|
|
5,360 |
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|
51 |
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|
21,130 |
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Interest |
|
2,446 |
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|
4 |
|
|
510 |
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|
552 |
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|
3,512 |
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Capital expenditures |
|
4,661 |
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|
139 |
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|
198 |
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— |
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|
4,998 |
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Non-cash compensation |
|
756 |
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|
406 |
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|
183 |
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|
2,651 |
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|
3,996 |
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Nine Months Ended September 30, 2015 |
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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 |
|
|
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 |
|
|
528 |
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|
5,141 |
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|
34 |
|
|
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 |
|
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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(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 $36,017 and $53,399 as of September 30, 2016 and 2015, respectively.
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(4) |
The following table reconciles EBITDA, as adjusted, to loss before income taxes for the three and nine months ended September 30, 2016 and 2015. |
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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 |
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2016 |
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2015 |
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2016 |
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2015 |
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Independent Brokerage and Advisory Services |
|
$ |
9,503 |
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$ |
10,925 |
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$ |
32,222 |
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$ |
33,677 |
|
|
Ladenburg |
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(1,604 |
) |
|
98 |
|
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(4,862 |
) |
|
4,765 |
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Insurance Brokerage |
|
462 |
|
|
417 |
|
|
1,294 |
|
|
203 |
|
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Corporate |
|
(2,797 |
) |
|
(3,080 |
) |
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(7,505 |
) |
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(7,967 |
) |
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Total Segments |
|
5,564 |
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|
8,360 |
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|
21,149 |
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|
30,678 |
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Adjustments: |
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Interest income |
|
187 |
|
|
69 |
|
|
479 |
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|
178 |
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Change in fair value of contingent consideration |
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(72 |
) |
|
— |
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|
(178 |
) |
|
31 |
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Loss on extinguishment of debt |
|
— |
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|
— |
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|
— |
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(252 |
) |
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Interest expense |
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(1,133 |
) |
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(1,255 |
) |
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(3,512 |
) |
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(3,970 |
) |
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Depreciation and amortization |
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(7,014 |
) |
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(6,798 |
) |
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(21,130 |
) |
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(20,080 |
) |
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Non-cash compensation expense |
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(1,300 |
) |
|
(242 |
) |
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(3,996 |
) |
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(5,926 |
) |
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Financial advisor recruiting expense |
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(514 |
) |
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(764 |
) |
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(1,191 |
) |
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(1,670 |
) |
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Amortization of retention and forgivable loans |
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(1,403 |
) |
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(2,223 |
) |
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(4,381 |
) |
|
(7,831 |
) |
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Acquisition-related expenses (1)
|
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(936 |
) |
|
(139 |
) |
|
(1,003 |
) |
|
(257 |
) |
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Other (2)
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|
(289 |
) |
|
(146 |
) |
|
(1,076 |
) |
|
(2,136 |
) |
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Net loss attributable to noncontrolling interest |
|
(1 |
) |
|
(11 |
) |
|
(33 |
) |
|
(39 |
) |
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Loss before income taxes |
|
$ |
(6,911 |
) |
|
$ |
(3,149 |
) |
|
$ |
(14,872 |
) |
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$ |
(11,274 |
) |
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(1) |
Includes $60 in the nine months ended September 30, 2016, for acquisition-related expense that was previously included in professional services expense.
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(2) |
Includes loss on severance costs of $44 and $277 for the three and nine months ended September 30, 2016 and excise and franchise tax expense of $109 and $343 for the three and nine months ended September 30, 2016 and compensation expense that may be paid in stock, of $133 and $399 for the three and nine months ended September 30, 2016, respectively. Includes loss on write-off of receivable from subtenant of $855 for the nine months ended September 30, 2015, rent expense due to default of subtenant of $468 for the nine months ended September 30, 2015 and compensation expense that may be paid in stock, of $133 and $399, for the three and nine months ended September 30, 2015, respectively, and excise and franchise tax expense of $263 for the nine months ended September 30, 2015
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