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Ladenburg Thalmann Reports Fourth Quarter And Full Year 2011 Results

At December 31, 2011, shareholder's equity was $63.4 million as compared to $46.9 million at December 31, 2010.

Dr. Phillip Frost, Chairman of Ladenburg, said, “2011 was a transformational year for Ladenburg, as we added a top-tier independent brokerage and advisory business, Securities America, and drove improved performance throughout the organization. Ladenburg generated significant EBITDA growth in 2011 as a result of increased commission revenue from the addition of Securities America in the fourth quarter and the recruitment of higher producing advisors throughout our independent advisory platform, as well as increased investment banking revenue. We believe our robust independent brokerage and advisory services platform, which now has approximately 2,700 advisors and approximately $70 billion in client assets, combined with our growing capital markets business, positions us for success in 2012 and beyond.”

Richard Lampen, President and Chief Executive Officer of Ladenburg, said, “We are excited about Ladenburg’s leadership position in the independent brokerage and advisory business, which we believe is the fastest growing segment of the financial services industry, as well as our momentum in the capital markets business. In 2011, we benefited from the late-year addition of Securities America, which significantly increased our revenue, number of advisors and client assets. At the same time, increased capital raising revenue from yield-based equity offerings, PIPEs, underwritten public offerings and private placements drove higher investment banking revenues.”

Mr. Lampen added, “So far in 2012, we have continued to build on our leadership position in the fast growing independent advisory space and are pleased with our recent recruiting success with the addition of productive teams, such as the Great Plains Financial Group to Securities America. We have also expanded our institutional equity business at Ladenburg Thalmann & Co. Inc. by adding a talented team of traders and salespeople during the first quarter.”

About Ladenburg

Ladenburg Thalmann Financial Services is engaged in independent brokerage and advisory services, investment banking, equity research, institutional sales and trading, and asset management services through its principal subsidiaries, Ladenburg Thalmann & Co. Inc., Investacorp, Inc., Triad Advisors, Inc. and Securities America, Inc., which together have approximately 2,700 financial advisors and approximately $70 billion in client assets. Founded in 1876 and a New York Stock Exchange member since 1879, Ladenburg Thalmann & Co. is a full service investment banking and brokerage firm providing services principally for middle market and emerging growth companies and high net worth individuals. Investacorp, Inc., a leading independent broker-dealer headquartered in Miami, Florida, has been serving the independent registered representative community since 1978. Founded in 1998, Triad Advisors, Inc. is a leading independent broker-dealer and registered investment advisor headquartered in Norcross, Georgia that offers a broad menu of products, services and total wealth management solutions. Securities America, based in Omaha, Nebraska, was founded in 1984 and is one of the largest and most successful independent broker-dealers in the country. Ladenburg Thalmann Financial Services is based in Miami, Florida. Ladenburg Thalmann & Co. is based in New York City, New York with regional offices in Miami and Boca Raton, Florida; Melville, New York; Boston, Massachusetts and Princeton, New Jersey. For more information, please visit www.ladenburg.com.

This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding future financial performance, future growth, growth of the independent brokerage and advisory area, and growth of our investment banking business. These statements are based on management’s current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive and/or regulatory factors, and other risks and uncertainties affecting the operation of the Company’s business. These risks, uncertainties and contingencies include those set forth in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2011 and other factors detailed from time to time in its other filings with the Securities and Exchange Commission. The information set forth herein should be read in light of such risks. Further, investors should keep in mind that the Company’s quarterly revenue and profits can fluctuate materially depending on many factors, including the number, size and timing of completed offerings and other transactions. Accordingly, the Company’s revenue and profits in any particular quarter may not be indicative of future results. The Company is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise.

 
 

LADENBURG THALMANN FINANCIAL SERVICES INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands, except share and per share amounts)

             
Year Ended Three Months Ended
December 31, December 31,
2011     2010 2011     2010
   

 

(unaudited)

Revenues:    
 
Commissions $ 139,549 $ 106,960 $ 54,873 $ 27,866
Advisory fees 87,865 53,627 39,945 16,910
Investment banking 27,514 22,381 2,343 6,479
Principal transactions (1,210 ) 131 366 827
Interest and dividends. 1,026 524 607 117
Service fees and other income   18,856         10,903     9,135         2,409  
Total revenues   273,600         194,526     107,269         54,608  
 
Expenses:
 
Commissions and fees 182,462 122,120 79,617 35,041
Compensation and benefits 52,043 43,309 14,540 11,306
Non-cash compensation 4,014 5,439 1,242 783
Brokerage, communication and clearance fees 6,937 6,632 1,748 1,741
Rent and occupancy, net of sublease revenue 3,813 3,309 1,388 980
Professional services 4,223 5,361 1,469 1,399
Interest 6,543 3,241 4,075 708
Depreciation and amortization 5,632 3,978 2,982 948
Acquisition related expense 2,971 2,271
Amortization of retention loans 1,634 1,634
Other   15,630         11,227     7,095         2,609  
Total expenses   285,902         204,616     118,061         55,515  
Loss before income taxes (12,302 ) (10,090 ) (10,792 ) (907 )
Income tax (benefit) expense   (16,195 )       861     (17,146 )       207  
Net income (loss) $ 3,893       $ (10,951 ) $ 6,354       $ (1,114 )
 

Net income (loss) per common share

(basic and diluted)

$

0.02

     

$

(0.06

)

$

0.03

     

$

(0.01

)

Weighted average common shares used in computation of per share data:

Basic   183,023,590         175,698,489     182,870,313         182,605,129  
Diluted   189,014,028         175,698,489     194,014,913         182,605,129  
 




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