This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Ladenburg Thalmann Reports First Quarter Results

Stocks in this article: LTS

Ladenburg Thalmann Financial Services Inc. (AMEX: LTS) today announced financial results for the quarter ended March 31, 2012.

First quarter 2012 revenues were $154.7 million, a 170% increase from revenues of $57.2 million in the first quarter of 2011. Net loss for the first quarter was $3.0 million, or $(0.02) per basic and diluted share, as compared to net income of $0.4 million, or $0.00 per basic and diluted share, in the comparable 2011 period. EBITDA, as adjusted, for the three months ended March 31, 2012 was $5.3 million, an increase from EBITDA, as adjusted, of $3.4 million for the 2011 period. The first quarter 2012 results included approximately $4.6 million due to amortization of intangible assets acquired in the November 4, 2011 Securities America acquisition and retention loans and non-cash compensation for option grants to Securities America employees and financial advisors. Interest expense was approximately $6.1 million in the first quarter of 2012, including $4.2 million of interest expense for indebtedness incurred in connection with the Securities America acquisition. The foregoing amounts were offset in part by a $5.6 million gain from a change in the fair value of contingent consideration for the Securities America acquisition. The first quarter 2011 results included $1.9 million of non-cash charges for depreciation, amortization and compensation expense and interest expense of $0.8 million.

The following table presents a reconciliation of EBITDA, as adjusted, to net (loss) income as reported.

    Three months ended

March 31,

(in thousands)




Total revenues $ 154,715 $ 57,202
Total expenses 162,641 56,447
Pre-tax (loss) income (2,371 ) 755
Net (loss) income (2,979 ) 409
Reconciliation of EBITDA, as adjusted, to net (loss) income:
EBITDA, as adjusted $ 5,308 $ 3,418
Interest income 44 15
Change in fair value of contingent consideration 5,555
Interest expense (6,060 ) (828 )
Income tax expense (608 ) (346 )
Depreciation and amortization (4,063 ) (893 )
Non-cash compensation (1,364 ) (957 )
Amortization of retention loans   (1,791 )      
Net (loss) income $ (2,979 ) $ 409  

Earnings before interest, taxes, depreciation and amortization, or EBITDA, adjusted for change in fair value of contingent consideration, non-cash compensation expense and interest expense is a key metric the Company uses in evaluating its financial performance. EBITDA is considered a non-GAAP financial measure as defined by Regulation G promulgated by the SEC under the Securities Act of 1933, as amended. The Company considers EBITDA, as adjusted, important in evaluating its financial performance on a consistent basis across various periods. Due to the significance of non-cash and non-recurring items, EBITDA, as adjusted, enables the Company’s Board of Directors and management to monitor and evaluate the business on a consistent basis. The Company uses EBITDA, as adjusted, as a primary measure, among others, to analyze and evaluate financial and strategic planning decisions regarding future operating investments and potential acquisitions. The Company believes that EBITDA, as adjusted, eliminates items that are not indicative of its core operating performance, such as change in fair value of contingent consideration and amortization of retention loans made in connection with the Securities America acquisition, or do not involve a cash outlay, such as stock-related compensation. The presentation of EBITDA, as adjusted, should not be construed as an inference that the Company's future results will be unaffected by unusual or non-recurring items or by non-cash items, such as non-cash compensation, which is expected to remain a key element in its long-term incentive compensation program. EBITDA, as adjusted, should be considered in addition to, rather than as a substitute for, pre-tax income, net income and cash flows from operating activities.

1 of 4

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,600.58 +243.71 1.40%
S&P 500 2,039.19 +26.30 1.31%
NASDAQ 4,705.8910 +61.5790 1.33%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs