Segment Information (Tables)

9 Months Ended

Sep. 30, 2018

Segment information for the three months and nine months ended September 30, 2018 and 2017 was as follows:



Three Months Ended September 30, 2018	Independent Advisory and Brokerage Services		Ladenburg		Insurance Brokerage			Corporate				Total
Revenues	$	300,015	$	15,180	$	32,960		$	720			$	348,875
Income (loss) before income taxes	18,538		821		(145		)	(6,557		)	⁽¹⁾	12,657
EBITDA, as adjusted ⁽³⁾	27,224		1,110		239			(3,264		)		25,309
Identifiable assets ⁽²⁾	509,270		49,841		90,920			150,560				800,591
Depreciation and amortization	5,457		122		261			5				5,845
Interest	311		2		76			2,817				3,206
Capital expenditures	3,780		95		31			(8		)		3,898
Non-cash compensation	317		176		—			887				1,380

Three Months Ended September 30, 2017
Revenues	$	286,170	$	19,454	$	16,358		$	327			$	322,309
Income (loss) before income taxes	8,411		3,099		(989		)	(5,864		)	⁽¹⁾	4,657
EBITDA, as adjusted ⁽³⁾	16,956		3,479		965			(4,738		)		16,662
Identifiable assets ⁽²⁾	424,155		44,759		46,157			37,544				552,615
Depreciation and amortization	5,340		105		1,658			1				7,104
Interest	352		—		172			77				601
Capital expenditures	2,208		351		33			(40		)		2,552
Non-cash compensation	263		157		5			916				1,341



Nine Months Ended September 30, 2018	Independent Advisory and Brokerage and Services		Ladenburg		Insurance Brokerage			Corporate				Total
Revenues	$	875,015	$	55,614	$	101,945		$	3,441			$	1,036,015
Income (loss) before income taxes	45,926		7,113		556			(19,418		)	⁽¹⁾	34,177
EBITDA, as adjusted ⁽³⁾	72,456		8,029		2,093			(11,266		)		71,312
Identifiable assets⁽²⁾	509,270		49,841		90,920			150,560				800,591
Depreciation and amortization	16,332		345		726			13				17,416
Interest	861		50		415			5,900				7,226
Capital expenditures	10,037		351		99			16				10,503
Non-cash compensation	936		529		113			2,864				4,442

Nine Months Ended September 30, 2017
Revenues	$	832,866	$	49,330	$	40,998		$	942			$	924,136
Income (loss) before income taxes	17,409		4,408		(5,108		)	(15,383		)	⁽¹⁾	1,326
EBITDA, as adjusted ⁽³⁾	42,413		5,811		1,039			(11,954		)		37,309
Identifiable assets⁽²⁾	424,155		44,759		46,157			37,544				552,615
Depreciation and amortization	16,140		392		5,268			30				21,830
Interest	865		—		511			223				1,599
Capital expenditures	6,460		627		167			4				7,258
Non-cash compensation	772		472		127			2,777				4,148

⁽¹⁾ Includes interest expense, compensation, professional fees, and other general and administrative expenses related to the Corporate segment.


⁽²⁾	Identifiable assets are presented as of the end of the period.


⁽³⁾	The following table reconciles income before income taxes for the three and nine months ended September 30, 2018 and 2017 to EBITDA, as adjusted.



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Income before income taxes	$	12,657		$	4,657		$	34,177		$	1,326
Adjustments:
Interest income	(810		)	(115		)	(1,688		)	(315		)
Change in fair value of contingent consideration	54			3			165			(86		)
Interest expense	3,206			601			7,226			1,599
Depreciation and amortization	5,845			7,104			17,416			21,830
Non-cash compensation expense	1,380			1,341			4,442			4,148
Amortization of retention and forgivable loans	97			1,808			280			5,070
Amortization of contract acquisition costs	2,488			—			7,059			—
Financial advisor recruiting expense	115			744			291			2,176
Acquisition-related expense	—			55			913			320
(Income) loss attributable to noncontrolling interest	(13		)	(3		)	(22		)	5
Other ^{(1) (2)}	290			467			1,053			1,236
EBITDA, as adjusted	$	25,309		$	16,662		$	71,312		$	37,309

EBITDA, as adjusted
Independent Advisory and Brokerage Services	$	27,224		$	16,956		$	72,456		$	42,413
Ladenburg	1,110			3,479			8,029			5,811
Insurance Brokerage	239			965			2,093			1,039
Corporate	(3,264		)	(4,738		)	(11,266		)	(11,954		)
Total segments	$	25,309		$	16,662		$	71,312		$	37,309


⁽¹⁾	Includes severance costs of $0 and $174, excise and franchise tax expense of $164 and $486 and compensation expense that may be paid in stock of $126 and $393 for the three and nine months ended September 30, 2018, respectively.


⁽²⁾	Includes severance costs of $212 and $406, excise and franchise tax expense of $149 and $435 and compensation expense that may be paid in stock of $109 and $411 for the three and nine months ended September 30, 2017, respectively.