Ladenburg Thalmann Financial Services Inc. (AMEX: LTS) (“Ladenburg” or the "Company”) today announced that the Company sent the following 2010 annual letter to its shareholders from the Chairman of the Board, Dr. Phillip Frost, and the Company’s President & Chief Executive Officer, Richard J. Lampen:
During 2010 and thus far in 2011, we have made significant progress establishing Ladenburg Thalmann Financial Services Inc. as a diversified financial services company with a leadership position in the independent brokerage and advisory business and a growing and profitable investment bank specializing in raising equity capital for emerging public companies. Since 2007, our plan has been to marry the stable and recurring revenues of the independent brokerage business with the more volatile, but potentially very profitable, investment banking/capital markets businesses – and we are pleased to report that it is working very well. Our goal has been to build sufficient scale in our independent brokerage business, with the accompanying steady cash flows it produces, so regardless of capital markets conditions, we as a firm can generate significant operating cash to create value for our shareholders.
Ladenburg has a long and proud history in the financial industry, and as we undertake this next phase of our growth, we will continue to be defined by our talented and devoted employees and advisors. We remain committed to fostering a strong, entrepreneurial spirit where anticipating and meeting the needs of our clients is our primary focus. We are confident that our past achievements and future success will be driven by the determined and principled people that make Ladenburg what it is today.
Some highlights from 2010 include:
- Increasing overall revenues by 29%, including a 38% growth in investment banking revenues, fueled in part by the continued growth from our yield-based equities business;
- Growing to more than 1,000 financial advisors and $22 billion of client assets in our independent brokerage business at year end 2010;
- Completing the acquisition of Premier Trust Inc., a provider of wealth management services, including trust administration, estate and financial planning, custody and investment services;
- Placing 52 offerings, which raised approximately $11 billion for clients in healthcare, biotechnology, energy and other industries;
- Raising $14 million in a private placement transaction led by entities associated with Dr. Samuel Yin, a highly regarded businessman and entrepreneur in the Greater China region; and
- Joining the Russell 3000 ® broad-market index.
For 2010, Ladenburg’s revenues were $194.5 million, representing a 29% increase over revenues of $150.7 million the prior year. EBITDA, as adjusted, increased $4.6 million in 2010 to a gain of $2.7 million compared to a loss of $1.8 million in 2009, primarily as a result of a smaller net loss in 2010 as compared to 2009. EBITDA, as adjusted, excludes non-cash compensation expense and other items.* The positive momentum continued into the first half of 2011, with revenues of $220 million and EBITDA, as adjusted, of $8.1 million for the 12 month period ended June 30, 2011. As of June 30, 2011, shareholders’ equity was $49.1 million, as compared to $46.9 million at December 31, 2010.