Annual report pursuant to Section 13 and 15(d)

Segment Information (Tables)

v3.20.1
Segment Information (Tables)
12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Segment information
Segment information for the years ended December 31, 2019, 2018 and 2017 is as follows:
 
 
Independent Advisory and Brokerage Services
 
Ladenburg
 
Insurance Brokerage
 
Corporate
 
Total
2019
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
1,204,326

 
$
75,523

 
$
186,211

 
$
3,242

 
$
1,469,302

Income (loss) before income taxes
 
65,517

 
10,501

 
4,745

 
(50,756
)
(1)
30,007

EBITDA, as adjusted (2)
 
99,408

 
11,498

 
7,645

 
(17,320
)
 
101,231

Identifiable assets
 
542,138

 
55,006

 
113,031

 
119,761

 
829,936

Depreciation and amortization
 
19,901

 
485

 
1,886

 
22

 
22,294

Interest
 
478

 
13

 
235

 
22,393

 
23,119

Capital expenditures
 
12,836

 
249

 
37

 
(78
)
 
13,044

Non-cash compensation
 
1,016

 
715

 

 
4,375

 
6,106

 
 
 
 
 
 
 
 
 
 
 
2018
 
  

 
  

 
 
 
  

 
  

Revenues
 
$
1,161,043

 
$
78,094

 
$
147,127

 
$
4,872

 
$
1,391,136

Income (loss) before income taxes
 
62,748

 
11,464

 
1,983

 
(29,030
)
(1)
47,165

EBITDA, as adjusted (2)
 
98,411

 
12,966

 
4,166

 
(15,095
)
 
100,448

Identifiable assets
 
515,720

 
59,798

 
97,708

 
67,678

 
740,904

Depreciation and amortization
 
22,403

 
471

 
1,146

 
19

 
24,039

Interest
 
905

 
62

 
472

 
9,357

 
10,796

Capital expenditures
 
13,787

 
351

 
244

 
120

 
14,502

Non-cash compensation
 
1,220

 
705

 
113

 
3,844

 
5,882

 
 
 
 
 
 
 
 
 
 
 
2017
 
  

 
  

 
 
 
  

 
  

Revenues
 
$
1,140,380

 
$
66,680

 
$
57,132

 
$
3,960

 
$
1,268,152

Income (loss) before income taxes
 
19,858

 
6,346

 
(5,338
)
 
(19,686
)
(1)
1,180

EBITDA, as adjusted (2)
 
59,756

 
8,115

 
2,698

 
(14,568
)
 
56,001

Identifiable assets
 
443,670

 
43,148

 
47,166

 
98,041

 
632,025

Depreciation and amortization
 
21,455

 
505

 
6,841

 
34

 
28,835

Interest
 
1,157

 

 
683

 
870

 
2,710

Capital expenditures
 
8,923

 
753

 
216

 
4

 
9,896

Non-cash compensation
 
1,035

 
629

 
183

 
3,692

 
5,539


(1)
Includes interest on revolving credit and forgivable loan notes, compensation, professional fees and other general and administrative expenses related to the Corporate segment.

(2)
The following table reconciles income (loss) before income taxes to EBITDA, as adjusted, for the years ended December 31, 2019, 2018 and 2017:
 
 
Year Ended December 31,
 
 
 
2019
 
2018
 
2017
 
Income before income taxes
 
$
30,007

 
$
47,165

 
$
1,180

 
Adjustments:
 
  

 
  

 
  

 
Interest income
 
(2,906
)
 
(2,504
)
 
(506
)
 
Change in fair value of contingent consideration
 
664

 
238

 
(19
)
 
Interest expense
 
23,119

 
10,796

 
2,710

 
Depreciation and amortization
 
22,294

 
24,039

 
28,835

 
Non-cash compensation expense
 
6,106

 
5,882

 
5,539

 
Amortization of retention and forgivable loans
 
549

 
417

 
7,396

 
Amortization of contract acquisition costs (6)
 
11,759

 
9,671

 

 
Financial advisor recruiting expense
 
55

 
370

 
5,721

 
Acquisition-related expense
 
5,887

 
1,010

 
3,469

 
Income (loss) attributable to noncontrolling interest
 
42

 
(28
)
 
15

 
Other
 
3,655

(3)
3,392

(4)
1,661

(5)
EBITDA, as adjusted
 
$
101,231

 
$
100,448

 
$
56,001

 
 
 
 
 
 
 
 
 
EBITDA, as adjusted
 
 
 
 
 
 
 
Independent Advisory and Brokerage Services
 
$
99,408

 
$
98,411

 
$
59,756

 
Ladenburg
 
11,498

 
12,966

 
8,115

 
Insurance Brokerage
 
7,645

 
4,166

 
2,698

 
Corporate
 
(17,320
)
 
(15,095
)
 
(14,568
)
 
Total segments
 
$
101,231

 
$
100,448

 
$
56,001

 


(3) Includes loss on severance costs of $1,697, excise and franchise tax expense of $548, compensation expense that may be paid in stock of $1,470, other legal matters of $215 and reversal of a write-off for a sublease commitment of $(275).

(4) Includes loss on severance costs of $481, excise and franchise tax expense of $629, compensation expense that may be paid in stock of $535 and non-recurring expenses related to a block repurchase of our common stock and other legal matters of $1,747.

(5) Includes loss on severance costs of $525, excise and franchise tax expense of $594 and compensation expense that may be paid in stock of $559.

(6) See Note 4 for further information.