Quarterly report pursuant to Section 13 or 15(d)

Segment Information (Tables)

Segment Information (Tables)

9 Months Ended

Sep. 30, 2017

Segment information for the three and nine months ended September 30, 2017 and 2016 was as follows:



Three Months Ended September 30, 2017	Independent Advisory and Brokerage Services		Ladenburg			Insurance Brokerage			Corporate				Total
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

Three Months Ended September 30, 2016
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 ⁽³⁾	9,503		(1,604		)	462			(2,797		)		5,564
Identifiable assets ⁽²⁾	411,577		33,046			54,301			44,832				543,756
Depreciation and amortization	5,008		185			1,804			17				7,014
Interest	795		4			170			164				1,133
Capital expenditures	1,267		19			12			—				1,298
Non-cash compensation	253		135			61			851				1,300

Nine Months Ended September 30, 2017	Independent Advisory and Brokerage Services		Ladenburg			Insurance Brokerage			Corporate				Total
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

Nine Months Ended September 30, 2016
Revenues	$	738,429	$	33,457		$	37,422		$	586			$	809,894
Income (loss) before income taxes	7,291		(6,071		)	(4,963		)	(11,129		)	⁽¹⁾	(14,872		)
EBITDA, as adjusted ⁽³⁾	32,222		(4,862		)	1,294			(7,505		)		21,149
Identifiable assets ⁽²⁾	411,577		33,046			54,301			44,832				543,756
Depreciation and amortization	15,173		546			5,360			51				21,130
Interest	2,446		4			510			552				3,512
Capital expenditures	4,661		139			198			—				4,998
Non-cash compensation	756		406			183			2,651				3,996


⁽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 (loss) before income taxes for the three and nine months ended September 30, 2017 and 2016 to EBITDA, as adjusted.



	Three Months Ended September 30						Nine Months Ended September 30
	2017			2016			2017			2016
Income (loss) before income taxes	$	4,657		$	(6,911	)	$	1,326		$	(14,872	)
Adjustments:
Interest income	(115		)	(184		)	(315		)	(479		)
Change in fair value of contingent consideration	3			72			(86		)	178
Interest expense	601			1,133			1,599			3,512
Depreciation and amortization	7,104			7,014			21,830			21,130
Non-cash compensation expense	1,341			1,300			4,148			3,996
Amortization of retention and forgivable loans	1,808			1,403			5,070			4,381
Financial advisor recruiting expense	744			514			2,176			1,191
Acquisition-related expense	55			936			320			1,003
Loss attributable to noncontrolling interest	(3		)	1			5			33
Other ⁽¹⁾	467			286			1,236			1,076
EBITDA, as adjusted	$	16,662		$	5,564		$	37,309		$	21,149

EBITDA, as adjusted
Independent Advisory and Brokerage Services	$	16,956		$	9,503		$	42,413		$	32,222
Ladenburg	3,479			(1,604		)	5,811			(4,862		)
Insurance Brokerage	965			462			1,039			1,294
Corporate	(4,738		)	(2,797		)	(11,954		)	(7,505		)
Total segments	$	16,662		$	5,564		$	37,309		$	21,149

⁽¹⁾

Includes severance 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. Includes severance of $44 and $277, excise and franchise tax expense of $109 and $343 and compensation expense that may be paid in stock of $133 and $456 for the three and nine months ended September 30, 2016.