| Segment Information |
Segment information for the three months ended June 30, 2013 and 2012 was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent
Brokerage and
Advisory Services
|
|
Ladenburg |
|
Corporate |
|
Total
|
2013 |
|
|
|
|
|
|
|
Revenues |
$ |
181,780 |
|
(1) |
$ |
17,165 |
|
(1) |
$ |
(5,076 |
) |
(2) |
$ |
193,869 |
|
Pre-tax (loss) income |
(1,242 |
) |
|
2,886 |
|
|
(6,564 |
) |
(3)(4) |
(4,920 |
) |
EBITDA, as adjusted(2)
|
12,446 |
|
|
3,323 |
|
(4) |
(4,862 |
) |
(4) |
10,907 |
|
Identifiable assets |
312,075 |
|
|
37,405 |
|
|
7,133 |
|
|
356,613 |
|
Depreciation and amortization |
3,646 |
|
|
206 |
|
|
18 |
|
|
3,870 |
|
Interest |
3,969 |
|
|
65 |
|
|
842 |
|
|
4,876 |
|
Capital expenditures |
1,655 |
|
|
470 |
|
|
— |
|
|
2,125 |
|
Non-cash compensation |
590 |
|
|
167 |
|
|
622 |
|
|
1,379 |
|
|
|
|
|
|
|
|
|
2012 |
|
|
|
|
|
|
|
Revenues |
$ |
149,988 |
|
|
$ |
13,322 |
|
|
$ |
75 |
|
|
$ |
163,385 |
|
Pre-tax (loss) income |
(1,951 |
) |
|
365 |
|
|
(3,353 |
) |
(2) |
(4,939 |
) |
EBITDA, as adjusted(2)
|
8,371 |
|
|
860 |
|
|
(1,586 |
) |
|
7,645 |
|
Identifiable assets |
313,912 |
|
|
24,346 |
|
|
2,087 |
|
|
340,345 |
|
Depreciation and amortization |
3,847 |
|
|
206 |
|
|
17 |
|
|
4,070 |
|
Interest |
4,943 |
|
|
68 |
|
|
1,181 |
|
|
6,192 |
|
Capital expenditures |
2,087 |
|
|
— |
|
|
7 |
|
|
2,094 |
|
Non-cash compensation |
438 |
|
|
220 |
|
|
569 |
|
|
1,227 |
|
|
|
|
|
|
|
|
|
Segment information for the six months ended June 30, 2013 and 2012 was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent
Brokerage and
Advisory Services
|
|
Ladenburg |
|
Corporate |
|
Total
|
2013 |
|
|
|
|
|
|
|
Revenues |
$ |
351,617 |
|
(1) |
$ |
34,565 |
|
(1) |
$ |
(5,008 |
) |
(2) |
$ |
381,174 |
|
Pre-tax (loss) income |
(13 |
) |
|
6,766 |
|
|
(11,027 |
) |
(3)(4) |
(4,274 |
) |
EBITDA, as adjusted(5)
|
24,742 |
|
|
7,568 |
|
(4) |
(7,443 |
) |
(4) |
24,867 |
|
Identifiable assets |
312,075 |
|
|
37,405 |
|
|
7,133 |
|
|
356,613 |
|
Depreciation and amortization |
7,330 |
|
|
412 |
|
|
35 |
|
|
7,777 |
|
Interest |
8,925 |
|
|
68 |
|
|
2,119 |
|
|
11,112 |
|
Capital expenditures |
2,485 |
|
|
552 |
|
|
— |
|
|
3,037 |
|
Non-cash compensation |
1,258 |
|
|
323 |
|
|
1,211 |
|
|
2,792 |
|
|
|
|
|
|
|
|
|
2012 |
|
|
|
|
|
|
|
Revenues |
$ |
293,792 |
|
|
$ |
24,198 |
|
|
$ |
110 |
|
|
$ |
318,100 |
|
Pre-tax (loss) income |
(514 |
) |
|
57 |
|
|
(6,853 |
) |
(2) |
(7,310 |
) |
EBITDA, as adjusted(5)
|
14,835 |
|
|
1,149 |
|
|
(3,030 |
) |
|
12,954 |
|
Identifiable assets |
313,912 |
|
|
24,346 |
|
|
2,087 |
|
|
340,345 |
|
Depreciation and amortization |
7,670 |
|
|
429 |
|
|
34 |
|
|
8,133 |
|
Interest |
8,910 |
|
|
72 |
|
|
3,270 |
|
|
12,252 |
|
Capital expenditures |
2,777 |
|
|
11 |
|
|
7 |
|
|
2,795 |
|
Non-cash compensation |
966 |
|
|
492 |
|
|
1,133 |
|
|
2,591 |
|
|
|
|
|
|
|
|
|
|
|
(1) |
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).
|
|
|
(2) |
Includes the elimination of $5,148 of revenue referred to in (1).
|
|
|
(3) |
Includes interest on revolving credit and forgivable loan notes, compensation, professional fees and other general and administrative expenses. |
|
|
(4) |
Includes the elimination of $2,545, consisting of $5,148 of revenue net of employee brokerage commission expenses of $2,603 related to sale of the Company's Series A Preferred Stock.
|
|
|
(5) |
The following table reconciles EBITDA, as adjusted, to pre-tax loss for the three and six months ended June 30, 2013 and 2012: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30 |
|
Six months ended June 30, |
EBITDA, as adjusted |
2013 |
|
2012 |
|
2013 |
|
2012 |
Independent Brokerage and Advisory Services |
$ |
12,446 |
|
|
$ |
8,371 |
|
|
$ |
24,742 |
|
|
$ |
14,835 |
|
Ladenburg |
3,323 |
|
|
860 |
|
|
7,568 |
|
|
1,149 |
|
Corporate |
(4,862 |
) |
|
(1,586 |
) |
|
(7,443 |
) |
|
(3,030 |
) |
Total segments |
10,907 |
|
|
7,645 |
|
|
24,867 |
|
|
12,954 |
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
Interest income |
50 |
|
|
49 |
|
|
90 |
|
|
93 |
|
Change in fair value of contingent consideration |
(144 |
) |
|
647 |
|
|
(121 |
) |
|
6,202 |
|
Loss on extinguishment of debt |
(3,754 |
) |
|
— |
|
|
(3,754 |
) |
|
— |
|
Interest expense |
(4,876 |
) |
|
(6,192 |
) |
|
(11,112 |
) |
|
(12,252 |
) |
Depreciation and amortization |
(3,870 |
) |
|
(4,070 |
) |
|
(7,777 |
) |
|
(8,133 |
) |
Non-cash compensation expense |
(1,379 |
) |
|
(1,227 |
) |
|
(2,792 |
) |
|
(2,591 |
) |
Amortization of retention loans |
(1,841 |
) |
|
(1,791 |
) |
|
(3,649 |
) |
|
(3,583 |
) |
Loss attributable to noncontrolling interest |
(13 |
) |
|
— |
|
|
(26 |
) |
|
— |
|
Pre-tax loss |
$ |
(4,920 |
) |
|
$ |
(4,939 |
) |
|
$ |
(4,274 |
) |
|
$ |
(7,310 |
) |
|
| Schedule of reconciliation of EBITDA |
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30 |
|
Six months ended June 30, |
EBITDA, as adjusted |
2013 |
|
2012 |
|
2013 |
|
2012 |
Independent Brokerage and Advisory Services |
$ |
12,446 |
|
|
$ |
8,371 |
|
|
$ |
24,742 |
|
|
$ |
14,835 |
|
Ladenburg |
3,323 |
|
|
860 |
|
|
7,568 |
|
|
1,149 |
|
Corporate |
(4,862 |
) |
|
(1,586 |
) |
|
(7,443 |
) |
|
(3,030 |
) |
Total segments |
10,907 |
|
|
7,645 |
|
|
24,867 |
|
|
12,954 |
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
Interest income |
50 |
|
|
49 |
|
|
90 |
|
|
93 |
|
Change in fair value of contingent consideration |
(144 |
) |
|
647 |
|
|
(121 |
) |
|
6,202 |
|
Loss on extinguishment of debt |
(3,754 |
) |
|
— |
|
|
(3,754 |
) |
|
— |
|
Interest expense |
(4,876 |
) |
|
(6,192 |
) |
|
(11,112 |
) |
|
(12,252 |
) |
Depreciation and amortization |
(3,870 |
) |
|
(4,070 |
) |
|
(7,777 |
) |
|
(8,133 |
) |
Non-cash compensation expense |
(1,379 |
) |
|
(1,227 |
) |
|
(2,792 |
) |
|
(2,591 |
) |
Amortization of retention loans |
(1,841 |
) |
|
(1,791 |
) |
|
(3,649 |
) |
|
(3,583 |
) |
Loss attributable to noncontrolling interest |
(13 |
) |
|
— |
|
|
(26 |
) |
|
— |
|
Pre-tax loss |
$ |
(4,920 |
) |
|
$ |
(4,939 |
) |
|
$ |
(4,274 |
) |
|
$ |
(7,310 |
) |
|