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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Ladenburg Thalmann Financial Services Inc | AMEX:LTS | AMEX | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 3.49 | 0 | 01:00:00 |
Florida
|
65-0701248
|
(State or other jurisdiction of
|
(I.R.S. Employer
|
incorporation or organization)
|
Identification Number)
|
|
|
4400 Biscayne Boulevard, 12th Floor
|
|
Miami, Florida
|
33137
|
(Address of principal executive offices)
|
(Zip Code)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, par value $.0001 per share
|
LTS
|
NYSE American
|
8.00% Series A Cumulative Redeemable Preferred Stock, Liquidation Preference $25.00 per share
|
LTS PrA
|
NYSE American
|
6.50% Senior Notes due 2027
|
LTSL
|
NYSE American
|
7% Senior Notes due 2028
|
LTSF
|
NYSE American
|
7.25% Senior Notes due 2028
|
LTSK
|
NYSE American
|
7.75% Senior Notes due 2029
|
LTSH
|
NYSE American
|
Large accelerated filer
|
[ ]
|
|
|
Accelerated filer
|
[x]
|
|
|
|
|
|
|
|
|
Non-accelerated filer
|
[ ]
|
|
|
Smaller reporting company
|
[ ]
|
|
|
|
|
|
|
|
|
|
|
|
|
Emerging growth company
|
[ ]
|
|
|
|
Page
|
PART I. FINANCIAL INFORMATION
|
|
|
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
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||
|
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||
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||
|
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|
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|
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|
PART II. OTHER INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2019
(Unaudited) |
|
December 31, 2018
|
||||
ASSETS
|
|
|
|
||||
|
|
|
|
||||
Cash and cash equivalents
|
$
|
251,033
|
|
|
$
|
182,693
|
|
Securities owned, at fair value
|
4,601
|
|
|
10,923
|
|
||
Receivables from clearing brokers
|
27,835
|
|
|
24,068
|
|
||
Receivables from other broker-dealers
|
5,597
|
|
|
7,078
|
|
||
Notes receivable from financial advisors, net
|
7,459
|
|
|
5,809
|
|
||
Other receivables, net
|
67,419
|
|
|
68,942
|
|
||
Insurance trailing commissions receivable
|
67,290
|
|
|
64,300
|
|
||
Fixed assets, net
|
32,068
|
|
|
29,994
|
|
||
Right-of-use assets
|
31,815
|
|
|
—
|
|
||
Restricted cash
|
771
|
|
|
6,588
|
|
||
Intangible assets, net
|
62,896
|
|
|
73,064
|
|
||
Goodwill
|
126,079
|
|
|
126,079
|
|
||
Contract acquisition costs, net
|
86,520
|
|
|
80,726
|
|
||
Cash surrender value of life insurance
|
13,934
|
|
|
11,406
|
|
||
Income taxes receivable
|
—
|
|
|
2,156
|
|
||
Other assets
|
32,807
|
|
|
47,078
|
|
||
Total assets
|
$
|
818,124
|
|
|
$
|
740,904
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
||||
|
|
|
|
||||
LIABILITIES:
|
|
|
|
||||
Securities sold, but not yet purchased, at fair value
|
$
|
35
|
|
|
$
|
2,575
|
|
Accrued compensation
|
36,871
|
|
|
39,264
|
|
||
Commissions and fees payable
|
106,004
|
|
|
105,306
|
|
||
Accounts payable and accrued liabilities
|
37,197
|
|
|
48,741
|
|
||
Deferred rent
|
—
|
|
|
2,956
|
|
||
Lease liabilities
|
34,798
|
|
|
—
|
|
||
Deferred income taxes
|
13,945
|
|
|
14,068
|
|
||
Deferred compensation liability
|
24,602
|
|
|
20,622
|
|
||
Accrued interest
|
—
|
|
|
123
|
|
||
Notes payable, net of unamortized discount of $5,881 and $6,372 in 2019 and 2018, respectively and net of debt issuance costs of $8,660 and $7,086 in 2019 and 2018, respectively.
|
315,898
|
|
|
254,072
|
|
||
Total liabilities
|
569,350
|
|
|
487,727
|
|
||
Commitments and contingencies (Note 10)
|
|
|
|
|
|
||
SHAREHOLDERS' EQUITY:
|
|
|
|
||||
Preferred stock, $.0001 par value; authorized 50,000,000 shares: 8% Series A cumulative redeemable preferred stock; designated 23,844,916 shares in 2019 and 2018; shares issued and outstanding 17,401,282 in 2019 and 17,012,075 in 2018 (liquidation preference $435,032 and $425,302 in 2019 and 2018, respectively)
|
2
|
|
|
2
|
|
||
Common stock, $.0001 par value; authorized 1,000,000,000 shares in 2019 and 2018; shares issued and outstanding, 148,710,781 in 2019 and 146,535,796 in 2018
|
15
|
|
|
14
|
|
||
Additional paid-in capital
|
317,735
|
|
|
344,356
|
|
||
Accumulated deficit
|
(68,971
|
)
|
|
(91,246
|
)
|
||
Total shareholders’ equity of the Company
|
248,781
|
|
|
253,126
|
|
||
Noncontrolling interest
|
(7
|
)
|
|
51
|
|
||
Total shareholders' equity
|
248,774
|
|
|
253,177
|
|
||
Total liabilities and shareholders' equity
|
$
|
818,124
|
|
|
$
|
740,904
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
||||||||
Commissions
|
|
$
|
180,395
|
|
|
$
|
172,108
|
|
|
$
|
527,076
|
|
|
$
|
515,775
|
|
Advisory fees
|
|
132,763
|
|
|
124,550
|
|
|
372,664
|
|
|
361,571
|
|
||||
Investment banking
|
|
18,692
|
|
|
9,982
|
|
|
40,060
|
|
|
38,201
|
|
||||
Principal transactions
|
|
(258
|
)
|
|
45
|
|
|
1,271
|
|
|
445
|
|
||||
Interest and dividends
|
|
1,474
|
|
|
1,434
|
|
|
4,018
|
|
|
3,301
|
|
||||
Service fees
|
|
31,137
|
|
|
28,702
|
|
|
95,727
|
|
|
81,189
|
|
||||
Other income
|
|
10,329
|
|
|
12,054
|
|
|
32,751
|
|
|
35,533
|
|
||||
Total revenues
|
|
374,532
|
|
|
348,875
|
|
|
1,073,567
|
|
|
1,036,015
|
|
||||
Expenses:
|
|
|
|
|
|
|
|
|
||||||||
Commissions and fees
|
|
260,072
|
|
|
249,672
|
|
|
749,522
|
|
|
735,388
|
|
||||
Compensation and benefits
|
|
54,026
|
|
|
44,905
|
|
|
154,514
|
|
|
140,727
|
|
||||
Non-cash compensation
|
|
1,536
|
|
|
1,380
|
|
|
4,474
|
|
|
4,442
|
|
||||
Brokerage, communication and clearance fees
|
|
3,392
|
|
|
3,734
|
|
|
10,956
|
|
|
11,994
|
|
||||
Rent and occupancy, net of sublease revenue
|
|
2,648
|
|
|
2,566
|
|
|
7,962
|
|
|
7,446
|
|
||||
Professional services
|
|
4,810
|
|
|
4,531
|
|
|
14,514
|
|
|
14,860
|
|
||||
Interest
|
|
6,218
|
|
|
3,206
|
|
|
16,840
|
|
|
7,226
|
|
||||
Depreciation and amortization
|
|
5,246
|
|
|
5,845
|
|
|
17,057
|
|
|
17,416
|
|
||||
Acquisition-related expenses
|
|
—
|
|
|
—
|
|
|
24
|
|
|
913
|
|
||||
Amortization of retention and forgivable loans
|
|
139
|
|
|
97
|
|
|
391
|
|
|
280
|
|
||||
Amortization of contract acquisition costs
|
|
2,988
|
|
|
2,488
|
|
|
8,639
|
|
|
7,059
|
|
||||
Other
|
|
18,067
|
|
|
17,740
|
|
|
58,746
|
|
|
53,922
|
|
||||
Total expenses
|
|
359,142
|
|
|
336,164
|
|
|
1,043,639
|
|
|
1,001,673
|
|
||||
Income before item shown below
|
|
15,390
|
|
|
12,711
|
|
|
29,928
|
|
|
34,342
|
|
||||
Change in fair value of contingent consideration
|
|
(93
|
)
|
|
(54
|
)
|
|
(290
|
)
|
|
(165
|
)
|
||||
Income before income taxes
|
|
15,297
|
|
|
12,657
|
|
|
29,638
|
|
|
34,177
|
|
||||
Income tax expense
|
|
4,020
|
|
|
3,207
|
|
|
7,421
|
|
|
9,953
|
|
||||
Net income
|
|
11,277
|
|
|
9,450
|
|
|
22,217
|
|
|
24,224
|
|
||||
Net (loss) income attributable to noncontrolling interest
|
|
(79
|
)
|
|
13
|
|
|
(58
|
)
|
|
22
|
|
||||
Net income attributable to the Company
|
|
$
|
11,356
|
|
|
$
|
9,437
|
|
|
$
|
22,275
|
|
|
$
|
24,202
|
|
Dividends declared on preferred stock
|
|
(8,702
|
)
|
|
(8,507
|
)
|
|
(25,987
|
)
|
|
(25,523
|
)
|
||||
Net income (loss) available to common shareholders
|
|
$
|
2,654
|
|
|
$
|
930
|
|
|
$
|
(3,712
|
)
|
|
$
|
(1,321
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per common share available to common shareholders (basic)
|
|
$
|
0.02
|
|
|
$
|
0.00
|
|
|
$
|
(0.03
|
)
|
|
$
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per common share available to common shareholders (diluted)
|
|
$
|
0.02
|
|
|
$
|
0.00
|
|
|
$
|
(0.03
|
)
|
|
$
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares used in computation of per share data:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
143,092,912
|
|
|
196,381,910
|
|
|
143,281,873
|
|
|
196,281,283
|
|
||||
Diluted
|
|
147,960,009
|
|
|
208,387,236
|
|
|
143,281,873
|
|
|
196,281,283
|
|
|
Preferred Stock
|
|
Common Stock
|
|
Additional Paid-In Capital
|
|
Accumulated Deficit
|
|
Noncontrolling Interest
|
|
|
|||||||||||||||||||
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
|
|
|
Total
|
||||||||||||||||||
Balance - June 30, 2018
|
17,012,075
|
|
|
$
|
2
|
|
|
201,271,034
|
|
|
$
|
20
|
|
|
$
|
501,348
|
|
|
$
|
(110,239
|
)
|
|
$
|
32
|
|
|
$
|
391,163
|
|
|
Issuance of common stock under employee stock purchase plan
|
—
|
|
|
—
|
|
|
32,891
|
|
|
—
|
|
|
84
|
|
|
—
|
|
|
—
|
|
|
84
|
|
|||||||
Exercise of stock options
|
—
|
|
|
—
|
|
|
778,234
|
|
|
—
|
|
|
1,304
|
|
|
—
|
|
|
—
|
|
|
1,304
|
|
|||||||
Stock-based compensation granted to advisory board, consultants and independent financial advisors
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|||||||
Stock-based compensation to employees
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,373
|
|
|
—
|
|
|
—
|
|
|
1,373
|
|
|||||||
Unvested restricted stock forfeitures
|
—
|
|
|
—
|
|
|
(106,250
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
||||||
Repurchase and retirement of common stock
|
—
|
|
|
—
|
|
|
(1,724,113
|
)
|
|
—
|
|
|
(5,318
|
)
|
|
—
|
|
|
—
|
|
|
(5,318
|
)
|
|||||||
Preferred stock issued, net of underwriting discount and expense of $91
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(91
|
)
|
|
—
|
|
|
—
|
|
|
(91
|
)
|
|||||||
Preferred stock dividends declared and paid
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,507
|
)
|
|
—
|
|
|
—
|
|
|
(8,507
|
)
|
|||||||
Common stock dividends declared and paid
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,448
|
)
|
|
—
|
|
|
—
|
|
|
(2,448
|
)
|
|||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,437
|
|
|
13
|
|
|
9,450
|
|
|||||||
Balance - September 30, 2018
|
17,012,075
|
|
|
$
|
2
|
|
|
200,251,796
|
|
|
$
|
20
|
|
|
$
|
487,752
|
|
|
$
|
(100,802
|
)
|
|
$
|
45
|
|
|
$
|
387,017
|
|
Balance - June 30, 2019
|
17,401,282
|
|
|
$
|
2
|
|
|
148,501,131
|
|
|
$
|
15
|
|
|
$
|
326,928
|
|
|
$
|
(80,327
|
)
|
|
$
|
72
|
|
|
$
|
246,690
|
|
Issuance of common stock under employee stock purchase plan
|
—
|
|
|
—
|
|
|
40,869
|
|
|
—
|
|
|
92
|
|
|
—
|
|
|
—
|
|
|
92
|
|
||||||
Exercise of stock options, net of 120,129 shares tendered in payment of exercise price
|
—
|
|
|
—
|
|
|
324,352
|
|
|
—
|
|
|
218
|
|
|
—
|
|
|
—
|
|
|
218
|
|
||||||
Stock-based compensation to employees
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,536
|
|
|
—
|
|
|
—
|
|
|
1,536
|
|
||||||
Repurchase and retirement of common stock
|
—
|
|
|
—
|
|
|
(155,571
|
)
|
|
—
|
|
|
(526
|
)
|
|
—
|
|
|
—
|
|
|
(526
|
)
|
||||||
Preferred stock issued, net of underwriting discount and expense of $18
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(18
|
)
|
|
—
|
|
|
—
|
|
|
(18
|
)
|
||||||
Preferred stock dividends declared and paid
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,702
|
)
|
|
—
|
|
|
—
|
|
|
(8,702
|
)
|
||||||
Common stock dividends declared and paid
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,793
|
)
|
|
—
|
|
|
—
|
|
|
(1,793
|
)
|
||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,356
|
|
|
(79
|
)
|
|
11,277
|
|
||||||
Balance - September 30, 2019
|
17,401,282
|
|
|
$
|
2
|
|
|
148,710,781
|
|
|
$
|
15
|
|
|
$
|
317,735
|
|
|
$
|
(68,971
|
)
|
|
$
|
(7
|
)
|
|
$
|
248,774
|
|
|
|
Preferred Stock
|
|
Common Stock
|
|
Additional Paid-In Capital
|
|
Accumulated Deficit
|
|
Noncontrolling Interest
|
|
|
||||||||||||||||||
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
|
|
|
Total
|
|||||||||||||||||
Balance - December 31, 2017
|
|
17,012,075
|
|
|
$
|
2
|
|
|
198,583,941
|
|
|
$
|
20
|
|
|
$
|
520,135
|
|
|
$
|
(149,778
|
)
|
|
$
|
12
|
|
|
$
|
370,391
|
|
Cumulative effect of adoption of ASC 606 (See Note 2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24,774
|
|
|
11
|
|
|
24,785
|
|
||||||
Balance - January 1, 2018
|
|
17,012,075
|
|
|
2
|
|
|
198,583,941
|
|
|
20
|
|
|
520,135
|
|
|
(125,004
|
)
|
|
23
|
|
|
395,176
|
|
||||||
Issuance of common stock under employee stock purchase plan
|
|
—
|
|
|
—
|
|
|
122,192
|
|
|
—
|
|
|
365
|
|
|
—
|
|
|
—
|
|
|
365
|
|
||||||
Exercise of stock options, net of 203,132 shares tendered in payment of exercise price
|
|
—
|
|
|
—
|
|
|
2,285,314
|
|
|
—
|
|
|
3,636
|
|
|
—
|
|
|
—
|
|
|
3,636
|
|
||||||
Stock-based compensation granted to advisory board, consultants and independent financial advisors
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34
|
|
|
—
|
|
|
—
|
|
|
34
|
|
||||||
Stock-based compensation to employees
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,408
|
|
|
—
|
|
|
—
|
|
|
4,408
|
|
||||||
Issuance of restricted stock
|
|
—
|
|
|
—
|
|
|
2,115,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Restricted stock forfeitures
|
|
—
|
|
|
—
|
|
|
(106,250
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Repurchase and retirement of common stock, including 247,379 shares surrendered for tax withholdings and 19,294 shares tendered in payment of exercise price
|
|
—
|
|
|
—
|
|
|
(2,748,401
|
)
|
|
—
|
|
|
(8,746
|
)
|
|
—
|
|
|
—
|
|
|
(8,746
|
)
|
||||||
Preferred stock issued, net of underwriting discount and expense of $180
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(180
|
)
|
|
—
|
|
|
—
|
|
|
(180
|
)
|
||||||
Preferred stock dividends declared and paid
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(25,523
|
)
|
|
—
|
|
|
—
|
|
|
(25,523
|
)
|
||||||
Common stock dividends declared and paid
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,377
|
)
|
|
—
|
|
|
—
|
|
|
(6,377
|
)
|
||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24,202
|
|
|
22
|
|
|
24,224
|
|
||||||
Balance - September 30, 2018
|
|
17,012,075
|
|
|
$
|
2
|
|
|
200,251,796
|
|
|
$
|
20
|
|
|
$
|
487,752
|
|
|
$
|
(100,802
|
)
|
|
$
|
45
|
|
|
$
|
387,017
|
|
Balance - December 31, 2018
|
|
17,012,075
|
|
|
$
|
2
|
|
|
146,535,796
|
|
|
$
|
14
|
|
|
$
|
344,356
|
|
|
$
|
(91,246
|
)
|
|
$
|
51
|
|
|
$
|
253,177
|
|
Issuance of common stock under employee stock purchase plan
|
|
—
|
|
|
—
|
|
|
127,507
|
|
|
—
|
|
|
342
|
|
|
—
|
|
|
—
|
|
|
342
|
|
||||||
Exercise of stock options, net of 663,979 shares tendered in payment of exercise price
|
|
—
|
|
|
—
|
|
|
2,529,429
|
|
|
—
|
|
|
1,372
|
|
|
—
|
|
|
—
|
|
|
1,372
|
|
||||||
Stock-based compensation granted to consultants and independent financial advisors
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
15
|
|
||||||
Stock-based compensation to employees
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,459
|
|
|
—
|
|
|
—
|
|
|
4,459
|
|
||||||
Issuance of restricted stock
|
|
—
|
|
|
—
|
|
|
2,785,000
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
Unvested restricted stock forfeitures
|
|
—
|
|
|
—
|
|
|
(82,500
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Repurchase and retirement of common stock, including 1,002,460 shares surrendered for tax withholdings and 12,673 shares tendered in exercise of options
|
|
—
|
|
|
—
|
|
|
(3,184,451
|
)
|
|
—
|
|
|
(10,873
|
)
|
|
—
|
|
|
—
|
|
|
(10,873
|
)
|
||||||
Preferred stock issued, net of underwriting discount and expense of $1
|
|
389,207
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,431
|
|
|
—
|
|
|
—
|
|
|
9,431
|
|
||||||
Preferred stock dividends declared and paid
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(25,987
|
)
|
|
—
|
|
|
—
|
|
|
(25,987
|
)
|
||||||
Common stock dividends declared and paid
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,380
|
)
|
|
—
|
|
|
—
|
|
|
(5,380
|
)
|
||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22,275
|
|
|
(58
|
)
|
|
22,217
|
|
||||||
Balance - September 30, 2019
|
|
17,401,282
|
|
|
$
|
2
|
|
|
148,710,781
|
|
|
$
|
15
|
|
|
$
|
317,735
|
|
|
$
|
(68,971
|
)
|
|
$
|
(7
|
)
|
|
$
|
248,774
|
|
|
Nine Months Ended
September 30, |
||||||
|
2019
|
|
2018
|
||||
|
|
|
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
22,217
|
|
|
$
|
24,224
|
|
Adjustments to reconcile net income to
|
|
|
|
||||
net cash provided by operating activities:
|
|
|
|
||||
Change in fair value of contingent consideration
|
290
|
|
|
165
|
|
||
Adjustment to deferred rent
|
—
|
|
|
819
|
|
||
Amortization of right-of-use assets
|
5,717
|
|
|
—
|
|
||
Amortization of intangible assets
|
10,173
|
|
|
11,552
|
|
||
Amortization of debt discount
|
491
|
|
|
428
|
|
||
Amortization of debt issue cost
|
636
|
|
|
401
|
|
||
Amortization of retention and forgivable loans
|
391
|
|
|
280
|
|
||
Amortization of contract acquisition costs
|
8,639
|
|
|
7,059
|
|
||
Depreciation and other amortization
|
6,884
|
|
|
5,864
|
|
||
Deferred income taxes
|
(123
|
)
|
|
6,056
|
|
||
Non-cash compensation expense
|
4,474
|
|
|
4,442
|
|
||
Gain on forgiveness of accrued interest under forgivable loans
|
—
|
|
|
(79
|
)
|
||
Gain on forgiveness of principal of note payable under forgivable loans
|
—
|
|
|
(2,143
|
)
|
||
Loss on write-off of furniture, fixtures and leasehold improvements, net
|
4
|
|
|
18
|
|
||
|
|
|
|
||||
(Increase) decrease in operating assets
|
|
|
|
||||
Securities owned, at fair value
|
6,322
|
|
|
(1,570
|
)
|
||
Receivables from clearing brokers
|
(3,767
|
)
|
|
21,893
|
|
||
Receivables from other broker-dealers
|
1,481
|
|
|
1,350
|
|
||
Other receivables, net
|
1,523
|
|
|
(11,151
|
)
|
||
Insurance trailing commissions receivable
|
(2,990
|
)
|
|
—
|
|
||
Contract acquisition costs, net
|
(14,433
|
)
|
|
(23,522
|
)
|
||
Notes receivable from financial advisors, net
|
(2,041
|
)
|
|
3
|
|
||
Cash surrender value of life insurance
|
(2,528
|
)
|
|
(767
|
)
|
||
Income taxes receivable
|
2,156
|
|
|
—
|
|
||
Other assets
|
14,271
|
|
|
(8,786
|
)
|
||
|
|
|
|
||||
Increase (decrease) in operating liabilities
|
|
|
|
||||
Securities sold, but not yet purchased, at fair value
|
(2,540
|
)
|
|
(165
|
)
|
||
Accrued compensation
|
(2,393
|
)
|
|
(1,220
|
)
|
||
Accrued interest
|
(123
|
)
|
|
(153
|
)
|
||
Commissions and fees payable
|
698
|
|
|
12,631
|
|
||
Deferred compensation liability
|
3,980
|
|
|
3,802
|
|
||
Lease liabilities
|
(5,787
|
)
|
|
—
|
|
||
Accounts payable and accrued liabilities
|
(11,655
|
)
|
|
9,932
|
|
||
Net cash provided by operating activities
|
41,967
|
|
|
61,363
|
|
||
|
|
|
|
||||
Cash flows from investing activities:
|
|
|
|
||||
Purchases of fixed assets
|
(9,044
|
)
|
|
(10,503
|
)
|
||
Purchase of intangible assets
|
(5
|
)
|
|
(6
|
)
|
||
Acquisition of certain assets of Kestler Financial Group
|
—
|
|
|
(1,683
|
)
|
||
Net cash used in investing activities
|
(9,049
|
)
|
|
(12,192
|
)
|
||
|
|
|
|
||||
Cash flows from financing activities:
|
|
|
|
||||
Issuance of Series A preferred stock
|
9,431
|
|
|
(180
|
)
|
||
Issuance of common stock
|
1,715
|
|
|
4,001
|
|
||
Issuance of senior notes
|
55,291
|
|
|
106,081
|
|
||
Series A preferred stock dividends paid
|
(25,987
|
)
|
|
(25,523
|
)
|
||
Common stock dividends paid
|
(5,380
|
)
|
|
(6,377
|
)
|
||
Repurchase and retirement of common stock
|
(10,873
|
)
|
|
(8,746
|
)
|
||
Borrowings on term loan
|
7,000
|
|
|
—
|
|
||
Bank loan and revolver repayments
|
(1,361
|
)
|
|
(6,658
|
)
|
||
Principal payments on notes payable
|
(231
|
)
|
|
(15,209
|
)
|
||
Net cash provided by financing activities
|
29,605
|
|
|
47,389
|
|
||
Net increase in cash and cash equivalents
|
62,523
|
|
|
96,560
|
|
||
Cash and cash equivalents including restricted cash, beginning of period
|
189,281
|
|
|
172,863
|
|
||
Cash and equivalents at end of period:
|
|
|
|
||||
Cash and cash equivalents
|
251,033
|
|
|
262,834
|
|
||
Restricted cash
|
771
|
|
|
6,589
|
|
||
Cash and cash equivalents including restricted cash, end of period
|
$
|
251,804
|
|
|
$
|
269,423
|
|
|
|
|
|
||||
Supplemental cash flow information:
|
|
|
|
||||
Interest paid
|
$
|
15,836
|
|
|
$
|
6,551
|
|
Taxes paid
|
1,940
|
|
|
2,786
|
|
||
|
|
|
|
||||
Acquisition of certain assets of Kestler Financial Group:
|
|
|
|
||||
Assets acquired
|
$
|
—
|
|
|
$
|
7,917
|
|
Liabilities assumed
|
—
|
|
|
(784
|
)
|
||
Net assets acquired
|
—
|
|
|
7,133
|
|
||
Promissory note
|
—
|
|
|
(5,450
|
)
|
||
Net cash paid in acquisition
|
$
|
—
|
|
|
$
|
1,683
|
|
For the Three Months Ended September 30, 2019
|
|
Independent Advisory and Brokerage Services
|
|
Ladenburg
|
|
Insurance Brokerage
|
|
Corporate
|
|
Total
|
||||||||||
Commissions
|
|
$
|
133,904
|
|
|
$
|
2,087
|
|
|
$
|
44,404
|
|
|
$
|
—
|
|
|
$
|
180,395
|
|
Advisory fees
|
|
130,464
|
|
|
2,299
|
|
|
—
|
|
|
—
|
|
|
132,763
|
|
|||||
Investment banking
|
|
238
|
|
|
18,454
|
|
|
—
|
|
|
—
|
|
|
18,692
|
|
|||||
Principal transactions
|
|
7
|
|
|
(237
|
)
|
|
—
|
|
|
(28
|
)
|
|
(258
|
)
|
|||||
Interest and dividends
|
|
650
|
|
|
263
|
|
|
—
|
|
|
561
|
|
|
1,474
|
|
|||||
Service fees
|
|
30,318
|
|
|
551
|
|
|
—
|
|
|
268
|
|
|
31,137
|
|
|||||
Other income
|
|
9,623
|
|
|
102
|
|
|
510
|
|
|
94
|
|
|
10,329
|
|
|||||
Total revenues
|
|
$
|
305,204
|
|
|
$
|
23,519
|
|
|
$
|
44,914
|
|
|
$
|
895
|
|
|
$
|
374,532
|
|
For the Three Months Ended September 30, 2018
|
|
Independent Advisory and Brokerage Services
|
|
Ladenburg
|
|
Insurance Brokerage
|
|
Corporate
|
|
Total
|
||||||||||
Commissions
|
|
$
|
137,054
|
|
|
$
|
2,590
|
|
|
$
|
32,464
|
|
|
$
|
—
|
|
|
$
|
172,108
|
|
Advisory fees
|
|
122,848
|
|
|
1,644
|
|
|
—
|
|
|
58
|
|
|
124,550
|
|
|||||
Investment banking
|
|
129
|
|
|
10,038
|
|
|
—
|
|
|
(185
|
)
|
|
9,982
|
|
|||||
Principal transactions
|
|
(2
|
)
|
|
48
|
|
|
—
|
|
|
(1
|
)
|
|
45
|
|
|||||
Interest and dividends
|
|
700
|
|
|
185
|
|
|
—
|
|
|
549
|
|
|
1,434
|
|
|||||
Service fees
|
|
27,868
|
|
|
635
|
|
|
—
|
|
|
199
|
|
|
28,702
|
|
|||||
Other income
|
|
11,418
|
|
|
40
|
|
|
496
|
|
|
100
|
|
|
12,054
|
|
|||||
Total revenues
|
|
$
|
300,015
|
|
|
$
|
15,180
|
|
|
$
|
32,960
|
|
|
$
|
720
|
|
|
$
|
348,875
|
|
For the Nine Months Ended September 30, 2019
|
|
Independent Brokerage and Advisory Services
|
|
Ladenburg
|
|
Insurance Brokerage
|
|
Corporate
|
|
Total
|
||||||||||
Commissions
|
|
$
|
396,949
|
|
|
$
|
7,161
|
|
|
$
|
122,966
|
|
|
$
|
—
|
|
|
$
|
527,076
|
|
Advisory fees
|
|
366,916
|
|
|
5,748
|
|
|
—
|
|
|
—
|
|
|
372,664
|
|
|||||
Investment banking
|
|
584
|
|
|
39,476
|
|
|
—
|
|
|
—
|
|
|
40,060
|
|
|||||
Principal transactions
|
|
19
|
|
|
1,403
|
|
|
—
|
|
|
(151
|
)
|
|
1,271
|
|
|||||
Interest and dividends
|
|
1,964
|
|
|
789
|
|
|
—
|
|
|
1,265
|
|
|
4,018
|
|
|||||
Service fees
|
|
93,237
|
|
|
1,716
|
|
|
—
|
|
|
774
|
|
|
95,727
|
|
|||||
Other income
|
|
30,355
|
|
|
470
|
|
|
1,723
|
|
|
203
|
|
|
32,751
|
|
|||||
Total revenues
|
|
$
|
890,024
|
|
|
$
|
56,763
|
|
|
$
|
124,689
|
|
|
$
|
2,091
|
|
|
$
|
1,073,567
|
|
For the Nine Months Ended September 30, 2018
|
|
Independent Brokerage and Advisory Services
|
|
Ladenburg
|
|
Insurance Brokerage
|
|
Corporate
|
|
Total
|
||||||||||
Commissions
|
|
$
|
407,159
|
|
|
$
|
8,739
|
|
|
$
|
99,877
|
|
|
$
|
—
|
|
|
$
|
515,775
|
|
Advisory fees
|
|
356,051
|
|
|
5,352
|
|
|
—
|
|
|
168
|
|
|
361,571
|
|
|||||
Investment banking
|
|
558
|
|
|
38,497
|
|
|
—
|
|
|
(854
|
)
|
|
38,201
|
|
|||||
Principal transactions
|
|
5
|
|
|
433
|
|
|
—
|
|
|
7
|
|
|
445
|
|
|||||
Interest and dividends
|
|
1,854
|
|
|
420
|
|
|
—
|
|
|
1,027
|
|
|
3,301
|
|
|||||
Service fees
|
|
78,780
|
|
|
1,822
|
|
|
—
|
|
|
587
|
|
|
81,189
|
|
|||||
Other income
|
|
30,608
|
|
|
351
|
|
|
2,068
|
|
|
2,506
|
|
|
35,533
|
|
|||||
Total revenues
|
|
$
|
875,015
|
|
|
$
|
55,614
|
|
|
$
|
101,945
|
|
|
$
|
3,441
|
|
|
$
|
1,036,015
|
|
|
|
As of September 30, 2019
|
As of December 31, 2018
|
||||
Contract assets - Insurance trailing commissions
|
|
$
|
67,290
|
|
$
|
64,300
|
|
Contract liabilities - Insurance trailing commissions
|
|
32,630
|
|
31,854
|
|
|
|
September 30, 2019
|
||||||||||||||
Assets
|
|
Carrying Value
|
|
Level 1
|
|
Level 2
|
|
Total Estimated Fair Value
|
||||||||
Cash and cash equivalents
|
|
$
|
251,033
|
|
|
$
|
251,033
|
|
|
$
|
—
|
|
|
$
|
251,033
|
|
Receivables from clearing brokers
|
|
27,835
|
|
|
—
|
|
|
27,835
|
|
|
27,835
|
|
||||
Receivables from other broker-dealers
|
|
5,597
|
|
|
—
|
|
|
5,597
|
|
|
5,597
|
|
||||
Notes receivables, net (1)
|
|
7,459
|
|
|
—
|
|
|
7,459
|
|
|
7,459
|
|
||||
Other receivables, net
|
|
67,419
|
|
|
—
|
|
|
67,419
|
|
|
67,419
|
|
||||
Insurance trailing commissions receivable
|
|
67,290
|
|
|
—
|
|
|
67,290
|
|
|
67,290
|
|
||||
|
|
$
|
426,633
|
|
|
$
|
251,033
|
|
|
$
|
175,600
|
|
|
$
|
426,633
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Accrued compensation
|
|
$
|
36,871
|
|
|
$
|
—
|
|
|
$
|
36,871
|
|
|
$
|
36,871
|
|
Commissions and fees payable
|
|
106,004
|
|
|
—
|
|
|
106,004
|
|
|
106,004
|
|
||||
Accounts payable and accrued liabilities (2)
|
|
34,677
|
|
|
—
|
|
|
34,677
|
|
|
34,677
|
|
||||
Accrued interest
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Notes payable, net (3)
|
|
315,898
|
|
|
—
|
|
|
333,145
|
|
|
333,145
|
|
||||
|
|
$
|
493,450
|
|
|
$
|
—
|
|
|
$
|
510,697
|
|
|
$
|
510,697
|
|
|
|
December 31, 2018
|
||||||||||||||
Assets
|
|
Carrying Value
|
|
Level 1
|
|
Level 2
|
|
Total Estimated Fair Value
|
||||||||
Cash and cash equivalents
|
|
$
|
182,693
|
|
|
$
|
182,693
|
|
|
$
|
—
|
|
|
$
|
182,693
|
|
Receivables from clearing brokers
|
|
24,068
|
|
|
—
|
|
|
24,068
|
|
|
24,068
|
|
||||
Receivables from other broker-dealers
|
|
7,078
|
|
|
—
|
|
|
7,078
|
|
|
7,078
|
|
||||
Notes receivables, net (1)
|
|
5,809
|
|
|
—
|
|
|
5,809
|
|
|
5,809
|
|
||||
Other receivables, net
|
|
68,942
|
|
|
—
|
|
|
68,942
|
|
|
68,942
|
|
||||
Insurance trailing commissions receivable
|
|
64,300
|
|
|
|
|
64,300
|
|
|
64,300
|
|
|||||
|
|
$
|
352,890
|
|
|
$
|
182,693
|
|
|
$
|
170,197
|
|
|
$
|
352,890
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Accrued compensation
|
|
$
|
39,264
|
|
|
$
|
—
|
|
|
$
|
39,264
|
|
|
$
|
39,264
|
|
Commissions and fees payable
|
|
105,306
|
|
|
—
|
|
|
105,306
|
|
|
105,306
|
|
||||
Accounts payable and accrued liabilities (2)
|
|
46,511
|
|
|
—
|
|
|
46,511
|
|
|
46,511
|
|
||||
Accrued interest
|
|
123
|
|
|
—
|
|
|
123
|
|
|
123
|
|
||||
Notes payable, net (3)
|
|
254,072
|
|
|
—
|
|
|
266,844
|
|
|
266,844
|
|
||||
|
|
$
|
445,276
|
|
|
$
|
—
|
|
|
$
|
458,048
|
|
|
$
|
458,048
|
|
|
|
September 30, 2019
|
||||||||||||||||||
Assets
|
|
Carrying Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total Estimated Fair Value
|
||||||||||
Certificates of deposit
|
|
$
|
289
|
|
|
$
|
289
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
289
|
|
Debt securities
|
|
627
|
|
|
—
|
|
|
627
|
|
|
—
|
|
|
627
|
|
|||||
U.S. treasury notes
|
|
711
|
|
|
—
|
|
|
711
|
|
|
—
|
|
|
711
|
|
|||||
Common stock and warrants
|
|
2,974
|
|
|
326
|
|
|
2,648
|
|
|
—
|
|
|
2,974
|
|
|||||
Total
|
|
$
|
4,601
|
|
|
$
|
615
|
|
|
$
|
3,986
|
|
|
$
|
—
|
|
|
$
|
4,601
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Contingent consideration payable
|
|
$
|
2,520
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,520
|
|
|
$
|
2,520
|
|
Debt securities
|
|
29
|
|
|
—
|
|
|
29
|
|
|
—
|
|
|
29
|
|
|||||
Common stock and warrants
|
|
6
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|||||
Total
|
|
$
|
2,555
|
|
|
$
|
6
|
|
|
$
|
29
|
|
|
$
|
2,520
|
|
|
$
|
2,555
|
|
|
|
December 31, 2018
|
||||||||||||||||||
Assets
|
|
Carrying Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total Estimated Fair Value
|
||||||||||
Certificates of deposit
|
|
$
|
426
|
|
|
$
|
426
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
426
|
|
Debt securities
|
|
1,447
|
|
|
—
|
|
|
1,447
|
|
|
—
|
|
|
1,447
|
|
|||||
U.S. treasury notes
|
|
794
|
|
|
—
|
|
|
794
|
|
|
—
|
|
|
794
|
|
|||||
Common stock and warrants
|
|
8,256
|
|
|
7,070
|
|
|
1,186
|
|
|
—
|
|
|
8,256
|
|
|||||
Total
|
|
$
|
10,923
|
|
|
$
|
7,496
|
|
|
$
|
3,427
|
|
|
$
|
—
|
|
|
$
|
10,923
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Contingent consideration payable
|
|
$
|
2,230
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,230
|
|
|
$
|
2,230
|
|
Debt securities
|
|
196
|
|
|
—
|
|
|
196
|
|
|
—
|
|
|
196
|
|
|||||
Common stock and warrants
|
|
2,379
|
|
|
2,379
|
|
|
—
|
|
|
—
|
|
|
2,379
|
|
|||||
Total
|
|
$
|
4,805
|
|
|
$
|
2,379
|
|
|
$
|
196
|
|
|
$
|
2,230
|
|
|
$
|
4,805
|
|
Fair value of contingent consideration as of December 31, 2017
|
|
$
|
2,104
|
|
Payments
|
|
(1,353
|
)
|
|
Change in fair value of contingent consideration
|
|
238
|
|
|
Fair value of contingent consideration in connection with KFG and FSFG acquisitions
|
|
1,241
|
|
|
Fair value of contingent consideration as of December 31, 2018
|
|
$
|
2,230
|
|
Change in fair value of contingent consideration
|
|
290
|
|
|
Fair value of contingent consideration as of September 30, 2019
|
|
$
|
2,520
|
|
|
Three Months Ended
|
Nine Months Ended
|
||||
|
September 30, 2019
|
September 30, 2019
|
||||
Operating lease cost
|
$
|
2,346
|
|
$
|
7,106
|
|
Short-term lease cost
|
89
|
|
146
|
|
||
Variable lease cost
|
194
|
|
676
|
|
||
Amortization of finance lease assets
|
31
|
|
91
|
|
||
Interest on finance lease liabilities
|
2
|
|
6
|
|
||
Sublease income
|
(25
|
)
|
(74
|
)
|
||
Total lease cost
|
$
|
2,637
|
|
$
|
7,951
|
|
|
Operating and Finance Leases
|
||
Remainder of 2019
|
$
|
2,344
|
|
2020
|
8,218
|
|
|
2021
|
6,114
|
|
|
2022
|
5,339
|
|
|
2023
|
3,903
|
|
|
Thereafter
|
15,750
|
|
|
Total lease payments
|
41,668
|
|
|
Less imputed interest
|
(6,870
|
)
|
|
Present value of lease payments
|
$
|
34,798
|
|
|
Nine months ended September 30, 2019
|
||
Cash paid for amounts included in measurement of lease liabilities:
|
|
||
Operating cash flows from operating and finance leases
|
$
|
8,280
|
|
|
Nine months ended September 30, 2019
|
||
Operating and finance leases
|
$
|
6,861
|
|
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||
|
|
Weighted-Average Estimated Useful Life (years)
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
||||||||
Technology
|
|
7.9
|
|
$
|
25,563
|
|
|
$
|
23,774
|
|
|
$
|
25,563
|
|
|
$
|
22,187
|
|
Relationships with financial advisors
|
|
14.3
|
|
126,122
|
|
|
67,430
|
|
|
126,122
|
|
|
59,584
|
|
||||
Covenants not-to-compete
|
|
3.8
|
|
6,964
|
|
|
6,610
|
|
|
6,964
|
|
|
6,258
|
|
||||
Trade names
|
|
7.7
|
|
16,921
|
|
|
14,860
|
|
|
16,916
|
|
|
14,472
|
|
||||
Total
|
|
|
|
$
|
175,570
|
|
|
$
|
112,674
|
|
|
$
|
175,565
|
|
|
$
|
102,501
|
|
|
|
||
Remainder of 2019
|
$
|
2,898
|
|
2020
|
11,466
|
|
|
2021
|
6,628
|
|
|
2022
|
6,555
|
|
|
2023
|
6,217
|
|
|
2024 - 2036
|
29,132
|
|
|
|
$
|
62,896
|
|
9.
|
Notes Payable
|
|
September 30,
2019 |
|
December 31,
2018 |
||||
Note payable under subsidiary's term loan with bank
|
$
|
5,728
|
|
|
$
|
—
|
|
Note payable under subsidiary's revolver with bank
|
—
|
|
|
89
|
|
||
Notes payable to Kestler Financial Group's former shareholders
|
5,242
|
|
|
5,399
|
|
||
Notes payable to Four Seasons Financial Group's former shareholders
|
290
|
|
|
364
|
|
||
6.5% Senior Notes, net of $61 and $67 of unamortized discount in 2019 and 2018, respectively
|
82,748
|
|
|
82,742
|
|
||
7% Senior Notes, net of $41 and $44 of unamortized discount in 2019 and 2018, respectively
|
42,479
|
|
|
42,475
|
|
||
7.25% Senior Notes
|
60,000
|
|
|
60,000
|
|
||
7.75% Senior Notes
|
57,500
|
|
|
—
|
|
||
7.25% December 2018 Notes, net of $5,779 and $6,261 of unamortized discount in 2019 and 2018, respectively
|
70,571
|
|
|
70,089
|
|
||
Less: Unamortized debt issuance costs
|
(8,660
|
)
|
|
(7,086
|
)
|
||
Total
|
$
|
315,898
|
|
|
$
|
254,072
|
|
Grant Date
|
|
Final Vesting Date
|
Shares
|
Fair Value (1)
|
|||
January 10, 2019 (2)
|
|
January 10, 2023
|
2,295,000
|
|
$
|
7,436
|
|
January 25, 2019 (3)
|
|
January 25, 2021
|
30,000
|
|
86
|
|
|
April 22, 2019 (2)
|
|
April 22, 2023
|
250,000
|
|
945
|
|
|
June 13, 2019 (3)
|
|
June 13, 2021
|
210,000
|
|
737
|
|
|
|
|
|
2,785,000
|
|
$
|
9,204
|
|
(1)
|
Fair value is calculated using the closing price on the grant date.
|
(2)
|
Vests in four equal annual installments beginning on the first anniversary of the grant date.
|
(3)
|
Vests in two equal annual installments beginning on the first anniversary of the grant date.
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, 2019 |
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
Basic weighted-average shares
|
143,092,912
|
|
|
196,381,910
|
|
|
143,281,873
|
|
|
196,281,283
|
|
Effect of dilutive securities:
|
|
|
|
|
|
|
|
||||
Options to purchase common stock
|
4,310,499
|
|
|
10,616,368
|
|
|
—
|
|
|
—
|
|
Restricted shares of common stock
|
556,598
|
|
|
1,388,958
|
|
|
—
|
|
|
—
|
|
Dilutive potential common shares
|
4,867,097
|
|
|
12,005,326
|
|
|
—
|
|
|
—
|
|
Weighted average common shares outstanding and dilutive potential common shares
|
147,960,009
|
|
|
208,387,236
|
|
|
143,281,873
|
|
|
196,281,283
|
|
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.
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
||||||||
Total revenues
|
$
|
374,532
|
|
|
$
|
348,875
|
|
|
$
|
1,073,567
|
|
|
$
|
1,036,015
|
|
|
Total expenses
|
359,142
|
|
|
336,164
|
|
|
1,043,639
|
|
|
1,001,673
|
|
|
||||
Income before income taxes
|
15,297
|
|
|
12,657
|
|
|
29,638
|
|
|
34,177
|
|
|
||||
Net income attributable to the Company
|
11,356
|
|
|
9,437
|
|
|
22,275
|
|
|
24,202
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation of net income attributable to the Company to EBITDA, as adjusted:
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to the Company
|
$
|
11,356
|
|
|
$
|
9,437
|
|
|
$
|
22,275
|
|
|
$
|
24,202
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest income
|
(882
|
)
|
|
(810
|
)
|
|
(2,138
|
)
|
|
(1,688
|
)
|
|
||||
Change in fair value of contingent consideration
|
93
|
|
|
54
|
|
|
290
|
|
|
165
|
|
|
||||
Add:
|
|
|
|
|
|
|
|
|
||||||||
Interest expense
|
6,218
|
|
|
3,206
|
|
|
16,840
|
|
|
7,226
|
|
|
||||
Income tax expense
|
4,020
|
|
|
3,207
|
|
|
7,421
|
|
|
9,953
|
|
|
||||
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 (3)
|
2,988
|
|
|
2,488
|
|
|
8,639
|
|
|
7,059
|
|
|
||||
Financial advisor recruiting expense
|
9
|
|
|
115
|
|
|
18
|
|
|
291
|
|
|
||||
Acquisition-related expense
|
—
|
|
|
—
|
|
|
24
|
|
|
913
|
|
|
||||
Other (1) (2)
|
363
|
|
|
290
|
|
|
2,880
|
|
|
1,053
|
|
|
||||
EBITDA, as adjusted
|
$
|
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, respectively.
|
(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.
|
(3)
|
See Note 2, "Revenue from Contracts with Customers" to our condensed consolidated financial statements included in Part I, Item 1 of this quarterly report on Form 10-Q.
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
||||||||
Independent advisory and brokerage services
|
$
|
305,204
|
|
|
$
|
300,015
|
|
|
$
|
890,024
|
|
|
$
|
875,015
|
|
|
Ladenburg
|
23,519
|
|
|
15,180
|
|
|
56,763
|
|
|
55,614
|
|
|
||||
Insurance Brokerage
|
44,914
|
|
|
32,960
|
|
|
124,689
|
|
|
101,945
|
|
|
||||
Corporate
|
895
|
|
|
720
|
|
|
2,091
|
|
|
3,441
|
|
|
||||
Total revenues
|
$
|
374,532
|
|
|
$
|
348,875
|
|
|
$
|
1,073,567
|
|
|
$
|
1,036,015
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) before income taxes:
|
|
|
|
|
|
|
|
|
||||||||
Independent advisory and brokerage services
|
$
|
20,238
|
|
|
$
|
18,538
|
|
|
$
|
52,334
|
|
|
$
|
45,926
|
|
|
Ladenburg
|
5,191
|
|
|
821
|
|
|
8,524
|
|
|
7,113
|
|
|
||||
Insurance Brokerage
|
1,719
|
|
|
(145
|
)
|
|
2,254
|
|
|
556
|
|
|
||||
Corporate(1)
|
(11,851
|
)
|
|
(6,557
|
)
|
|
(33,474
|
)
|
|
(19,418
|
)
|
|
||||
Total income before income taxes
|
$
|
15,297
|
|
|
$
|
12,657
|
|
|
$
|
29,638
|
|
|
$
|
34,177
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
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 EBITDA, as adjusted(2)
|
$
|
31,086
|
|
|
$
|
25,309
|
|
|
$
|
78,171
|
|
|
$
|
71,312
|
|
|
(1)
|
Includes interest expense, compensation, professional fees and other general administrative expenses related to the corporate segment.
|
(2)
|
See Note 15 to our condensed consolidated financial statements for a reconciliation of income before income taxes to EBITDA, as adjusted.
|
Period
|
|
Total Number of Shares Purchased |
|
Average Price
Paid
per Share
|
|
Total Number
of Shares
Purchased as
Part of Publicly
Announced
Plans or Programs
|
|
Maximum
Number
of Shares that
May Yet Be
Purchased
Under the
Plans or
Programs (1)
|
|||||
July 1 to July 31, 2019
|
|
155,571
|
|
|
$
|
3.38
|
|
|
155,571
|
|
|
10,273,937
|
|
August 1 to August 31, 2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,273,937
|
|
|
September 1 to September 30, 2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,273,937
|
|
|
Total
|
|
155,571
|
|
|
$
|
3.38
|
|
|
155,571
|
|
|
|
(1)
|
In March 2007, October 2011, November 2014, November 2016 and April 2019, our board of directors authorized in the aggregate the repurchase of up to 37,500,000 shares of our common stock from time to time on the open market or in privately negotiated transactions depending on market conditions. As of September 30, 2019, 27,226,063 shares had been repurchased for $73,194 under the program and 10,273,937 shares remain available for repurchase under the program depending on market conditions. In April 2019, our board of directors authorized the repurchase of up to an additional 10,000,000 shares of our common stock from time to time on the open market or in privately negotiated transactions depending on market conditions. Beginning in the fourth quarter of 2015, we adopted a Rule 10b5-1 trading plan to permit the repurchase of common stock pursuant to the existing stock repurchase program during certain restricted trading periods. We may execute similar Rule 10b5-1 plans periodically in the future.
|
Exhibit No.
|
|
Description
|
|
|
31.1
|
|
|
||
31.2
|
|
|
||
32.1
|
|
|
||
32.2
|
|
|
||
101.INS
|
|
XBRL Instance Document.*
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema.*
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase.*
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase.*
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Label Linkbase.*
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Presentation Linkbase.*
|
|
|
|
|
|
LADENBURG THALMANN FINANCIAL SERVICES INC.
|
|
|
|
|
|
|
(Registrant)
|
|
|
|
|
|
|
|
|
|
Date:
|
|
November 8, 2019
|
|
By:
|
/s/ Brett H. Kaufman
|
|
|
|
|
|
|
Brett H. Kaufman
|
|
|
|
|
|
|
Senior Vice President and Chief Financial Officer
|
|
|
|
|
|
|
(Principal Financial and Accounting Officer)
|
|
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