Quarterly report pursuant to Section 13 or 15(d)

Segment Information (Tables)

v3.19.3
Segment Information (Tables)
9 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Segment Information
Segment information for the three and nine months ended September 30, 2019 and 2018 was as follows:

Three Months Ended September 30, 2019
 
Independent
Advisory and Brokerage Services
 
Ladenburg
 
Insurance Brokerage
 
Corporate
 
Total
Revenues
 
$
305,204

 
$
23,519

 
$
44,914

 
$
895

 
$
374,532

Income (loss) before income taxes
 
20,238

 
5,191

 
1,719

 
(11,851
)
(1) 
15,297

EBITDA, as adjusted (3)
 
28,466

 
5,210

 
2,343

 
(4,933
)
 
31,086

Identifiable assets (2)
 
539,991

 
58,679

 
101,780

 
117,674

 
818,124

Depreciation and amortization
 
4,653

 
120

 
468

 
5

 
5,246

Interest
 
133

 
1

 
58

 
6,026

 
6,218

Capital expenditures
 
2,892

 

 
2

 
(3
)
 
2,891

Non-cash compensation
 
251

 
178

 

 
1,107

 
1,536

 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2018
 

 
 
 
 
 
 
 

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






Nine Months Ended September 30, 2019
 
Independent
Advisory and Brokerage Services
 
Ladenburg
 
Insurance Brokerage
 
Corporate
 
Total
Revenues
 
$
890,024

 
$
56,763

 
$
124,689

 
$
2,091

 
$
1,073,567

Income (loss) before income taxes
 
52,334

 
8,524

 
2,254

 
(33,474
)
(1) 
29,638

EBITDA, as adjusted (3)
 
78,040

 
9,217

 
4,160

 
(13,246
)
 
78,171

Identifiable assets (2)
 
539,991

 
58,679

 
101,780

 
117,674

 
818,124

Depreciation and amortization
 
15,270

 
359

 
1,412

 
16

 
17,057

Interest
 
365

 
(10
)
 
177

 
16,308

 
16,840

Capital expenditures
 
9,100

 

 
35

 
(91
)
 
9,044

Non-cash compensation
 
765

 
536

 

 
3,173

 
4,474

 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
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
 
10,035

 
351

 
101

 
16

 
10,503

Non-cash compensation
 
936

 
529

 
113

 
2,864

 
4,442




(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, 2019 and 2018 to EBITDA, as adjusted.
 
 
Three Months Ended 
 September 30, 2019
 
Nine Months Ended 
 September 30, 2019
 
 
 
2019
 
2018
 
2019
 
2018
 
Income before income taxes
 
$
15,297


$
12,657

 
$
29,638

 
$
34,177

 
Adjustments:
 
  

 
  

 
  

 
  

 
Interest income
 
(882
)
 
(810
)
 
(2,138
)
 
(1,688
)
 
Change in fair value of contingent consideration
 
93

 
54

 
290

 
165

 
Interest expense
 
6,218

 
3,206

 
16,840

 
7,226

 
Depreciation and amortization
 
5,246

 
5,845

 
17,057

 
17,416

 
Non-cash compensation expense
 
1,536

 
1,380

 
4,474

 
4,442

 
Amortization of retention and forgivable loans
 
139

 
97

 
391

 
280

 
Amortization of contract acquisition costs
 
2,988

 
2,488

 
8,639

 
7,059

 
Financial advisor recruiting expense
 
9

 
115

 
18

 
291

 
Acquisition-related expense
 

 

 
24

 
913

 
Income attributable to noncontrolling interest
 
79

 
(13
)
 
58

 
(22
)
 
Other (1) (2)
 
363

 
290

 
2,880

 
1,053

 
EBITDA, as adjusted
 
$
31,086

 
$
25,309

 
$
78,171

 
$
71,312

 
 
 
 
 
 
 
 
 
 
 
EBITDA, as adjusted
 
 
 
 
 
 
 
 
 
Independent Advisory and Brokerage Services
 
$
28,466

 
$
27,224

 
$
78,040

 
$
72,456

 
Ladenburg
 
5,210

 
1,110

 
9,217

 
8,029

 
Insurance Brokerage
 
2,343

 
239

 
4,160

 
2,093

 
Corporate
 
(4,933
)
 
(3,264
)
 
(13,246
)
 
(11,266
)
 
Total segments
 
$
31,086

 
$
25,309

 
$
78,171

 
$
71,312

 

(1) 
Includes severance costs of $160 and $1,269, excise and franchise tax expense of $134 and $416, compensation expense that may be paid in stock of $399 and $1,256, non-recurring expenses related to a block repurchase of our common stock and other legal matters of $(55) and $214 and reversal of a write-off for a sublease commitment of $(275) for the three and nine months ended September 30, 2019.
(2)
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.