- Increasing full year 2011 revenues by 41% from the acquisition of Securities America, Inc., the continued growth of our other independent brokerage and advisory businesses, and higher investment banking activity in yield-based equity offerings, PIPEs and underwritten public offerings.
- Generating EBITDA growth in 2011 of approximately 311% over 2010.
- Expanding our robust network to include approximately 2,700 independent financial advisors with approximately $70 billion in total client assets.
- Broadening the technological, professional and other support we provide for our enviable team of independent advisors, including offering an attractive suite of wealth management products to our advisors, including trust services.
- Becoming an advocate for the independent brokerage advisory business in Washington, D.C. by having our three independent subsidiaries and their affiliated independent financial advisors become active members of the Financial Services Institute.
- Making well deserved appointments to senior leadership positions at key parts of the organization including the appointment of Adam Malamed as our Chief Operating Officer and Peter Blum and David Rosenberg as co-CEOs of our Ladenburg Thalmann broker-dealer. In addition, adding senior industry specialists in dynamic sectors for investment banking such as energy and healthcare.
- Bolstering our institutional equity business at our Ladenburg Thalmann broker-dealer subsidiary with the addition of a talented team of traders and salespeople.
- Participating in 73 offerings during 2011, which raised approximately $9.6 billion for clients in healthcare, biotechnology, energy and other industries.
- Surpassing $1 billion in assets under management at Ladenburg Thalmann Asset Management, our internal wealth management division that serves as a money manager for retail and institutional clients, while also filling an important role in supporting organic growth from our independent advisors.
In order to capitalize on these favorable market dynamics, we completed the transformational acquisition of Securities America in 2011. We are glad to report that it has been a seamless transition for Securities America into the Ladenburg family.After announcing the transaction in August and closing the deal in November of last year, we are especially pleased with our success in retaining an extremely high percentage of advisors at Securities America. With Securities America’s “best in breed” independent broker-dealer platform and service-focused culture, we significantly increased our market share and further established our leadership position in this appealing market. Importantly, Securities America has continued to operate on an independent basis under the leadership of Jim Nagengast and his talented team; a formula that has worked well for us with our prior acquisitions of Triad Advisors and Investacorp, which have also continued to grow and perform very well under the strong leadership of Mark Mettelman and Patrick Farrell. We have continued to enhance all three firms by making investments in technology and practice management tools, adding capabilities in the asset management area, and broadening access to capital markets products, proprietary institutional equity research and trust services. Looking forward, we are excited about the opportunities to continue to drive strong growth at all of our independent brokerage firms, both organically and through disciplined strategic acquisitions. Investment Banking Business Ladenburg Thalmann & Co. Inc. remains focused on advising clients in middle-market investment banking, with significant experience and a unique understanding of the challenges companies and institutions face when building their businesses. Our team consists of investment bankers based in New York and Miami, equity research analysts covering over 160 public companies, and institutional salespeople covering investors both in the U.S. and around the world, among others. Areas of focus for our equity research analysts and investment bankers span a number of industries and product areas, including yield-based equities, energy, power and utilities, technology and healthcare. With key new hires this year in the energy and healthcare sectors, we have bolstered our capabilities in those fast-growing spaces where we have long had significant expertise.
Ladenburg has a strong track record of completing successful capital raises on behalf of our clients, and 2011 was no exception. Last year, Ladenburg participated in 73 offerings, which raised over $9.6 billion for companies in a wide variety of industries including the healthcare, biotechnology, energy, technology and financial services spaces. 2012 is also off to a solid start, and we continue to have a strong stable of activity in our pipeline.Outlook for the Future Our commitment to growth in the independent brokerage business is without equal. We have now reached a scale where we can make the investment to become and remain the industry leader in technology and practice management and development. We believe we are a leading strategic player in our industry, uniquely positioned with our presence in both the independent brokerage and investment banking businesses. We remain committed for the long term to building an industry-best platform to drive profitable growth for our advisors and for the Company. As a sign of this commitment, in addition to making all three of Ladenburg’s independent broker-dealer subsidiaries and their affiliated independent financial advisors members of the Financial Services Institute for 2012, we have also taken on several leadership responsibilities in that organization. Jim Nagengast served as this year’s FSI Conference Task Force Chairman. In addition, Dick Lampen and Adam Malamed spent time this June in Washington, DC on Capitol Hill with a team of our advisors and executives from all of our broker-dealers, lobbying on behalf of the industry. In November, we are hosting our inaugural Women's Initiative conference, and we expect to continue to increase our level of visibility in the industry. We are also pleased that Dick Lampen was named to Investment Advisor’s Top 25 Most Influential People List in April 2012 in recognition of the efforts of the Ladenburg team.
At the same time, we remain focused on selectively expanding the scale and profitability of our investment banking and capital markets business. We believe having both sides of the business – independent brokerage and investment banking – differentiates us from our competitors by allowing us to offer a unique set of products and resources to our advisors, while moderating the cyclicality of our business and creating opportunities for our investment bank.As major shareholders of the Company, the Board of Directors and senior executives at Ladenburg are aligned with the interests of all investors, and are focused on creating long-term value. As we look ahead, we believe that Ladenburg’s prospects are bright, and we are poised to deliver continued growth on both sides of our business. With both the right people and the right strategic plans in place, we look forward to continued success in 2012 and beyond. In closing, we would like to take this opportunity to extend our gratitude to our shareholders, advisors, employees and clients – without whose support Ladenburg would not be the Company it is today.
|Phillip Frost, M.D.||Richard J. Lampen|
|Chairman of the Board||President & Chief Executive Officer|