8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): August 4, 2008

HFF, Inc.

(Exact name of Registrant as specified in its charter)

Delaware	001-33280	51-0610340
(State or Other Jurisdiction	(Commission File Number)	(I.R.S. Employer
of Incorporation or Organization)		Identification No.)

One Oxford Centre
301 Grant Street, Suite 600
Pittsburgh, Pennsylvania 15219
(412) 281-8714
(Address, Including Zip Code, and Telephone Number, Including Area Code, of Registrant’s Principal Executive Offices)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On August 4, 2008, HFF, Inc. (the “Company”) issued a press release announcing the Company’s financial and transaction production results for the quarter ended June 30, 2008. A copy of the press release is attached as Exhibit 99.1 and incorporated herein by reference.

The information in this Form 8-K and the attached exhibit shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

99.1 Press Release, dated August 4, 2008, announcing financial and transaction production results for the quarter ended June 30, 2008.

Signature

          Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	HFF, INC.
Dated: August 4, 2008	By:	/s/ Gregory R. Conley
		Gregory R. Conley
		Chief Financial Officer

EXHIBIT INDEX

Exhibit Number	Description
99.1	Press Release, dated August 4, 2008, announcing financial and transaction production results for the quarter ended June 30, 2008.

EX-99.1

Exhibit 99.1

HFF, Inc. reports second quarter 2008 financial and transaction production results

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August 4, 2008

Contacts:
JOHN H. PELUSI JR.	GREGORY R. CONLEY	MYRA F. MOREN
Chief Executive Officer	Chief Financial Officer	Director, Investor Relations
(412) 281-8714	(412) 281-8714	(713) 852-3500
jpelusi@hfflp.com	gconley@hfflp.com	mmoren@hfflp.com

HFF, Inc. reports second quarter 2008 financial and transaction production results

PITTSBURGH, PA — HFF, Inc. (NYSE: HF) reported today its financial and production volume results for the second quarter 2008. HFF, Inc. (the Company), through its Operating Partnerships, Holliday Fenoglio Fowler, L.P. (HFF LP) and HFF Securities L.P. (HFF Securities), is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry based on transaction volume and is one of the largest full-service commercial real estate financial intermediaries in the country.

Consolidated Earnings

Second Quarter Highlights

     In the face of the continuing difficult and challenging credit and liquidity conditions in the global capital markets, especially in the U.S. capital markets, as well as a weakening economy, the Company generated second quarter total revenue of $43.6 million compared to $79.8 million in the second quarter of 2007, a decrease of $36.2 million, or 45.4%. The Company reported operating income of $3.4 million for the second quarter of 2008 compared to operating income of $19.4 million in the comparable period of 2007, a decrease of approximately $16.0 million, or 82.3%. This decrease in operating income is attributable to the decrease in production volumes and related revenue from the prior year’s quarter in several of the Company’s capital markets services platforms. Offsetting this decrease in revenue of approximately $36.2 million is a reduction in total operating expenses of approximately $20.2 million in the second quarter 2008 compared to the same period of the prior year. This reduction in operating expenses is a result of a decrease in cost of services of approximately $17.3 million, which is primarily due to the decrease in commissions and other incentive compensation directly related to the lower capital markets services revenues, and a decrease

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in operating, administrative and other expenses (including depreciation and amortization) of $2.9 million, which is primarily related to a reduction in other performance based accruals and depreciation and amortization.

     Income tax expense for the second quarter 2008 was approximately $0.4 million, compared to $3.8 million of income tax expense for the second quarter 2007. This decrease is primarily attributable to the decrease in operating income as discussed above.

     The Company reported net income for the second quarter 2008 of approximately $1.1 million (after an adjustment to the three months results of $2.9 million to reflect the impact of the minority ownership interest of HFF Holdings, LLC (Holdings) in the Operating Partnerships) compared with net income of $5.1 million (after an adjustment to the three months results of $11.5 million to reflect the impact of the minority ownership interest of Holdings in the Operating Partnerships) for the same period in 2007. Earnings per diluted share were $0.06 in the second quarter of 2008 compared to $0.31 in the second quarter of 2007.

     EBITDA for the second quarter 2008 was approximately $5.1 million, a decrease of $16.2 million or 76.1% compared to the same period last year. This decrease is primarily attributable to the decrease in our operating income as discussed above.

Six Month Results

     The Company reported revenues of $75.8 million for the six months ended June 30, 2008, a decrease of $59.6 million, or 44.0%, compared to the same period last year. Operating income was $1.9 million compared to $27.1 million for the six months ended June 30, 2007, representing a decrease of $25.2 million, or 93.0%. This decrease in operating income is attributable to the decrease in production volumes and related revenue from the prior year in several of the Company’s capital markets services platforms. Offsetting this decrease in revenue of approximately $59.6 million is a reduction in total operating expenses of approximately $34.4 million during the first six months of 2008 compared to the same period of the prior year. This reduction in operating expenses is a result of a decrease in cost of services of approximately $28.3 million, which is primarily due to the decrease in commissions and other incentive compensation directly related to the lower capital markets services revenues, and a decrease in operating, administrative and other expenses (including depreciation and amortization) of $6.0 million, which is primarily related to a reduction

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in other performance based accruals and depreciation and amortization. The Company reported net income of $0.1 million (after an adjustment to the six months results of $2.8 million to reflect the impact of the minority ownership interest of Holdings in the Operating Partnerships) for the six month period ended June 30, 2008, compared with net income of $6.4 million (after adjustments to the results for the six month period ended June 30, 2007 of $15.4 million to reflect the impact of the minority ownership interest of Holdings in the Operating Partnerships following the Company’s offering on January 30, 2007 and $1.9 million to reflect the net income earned prior to the IPO and reorganization) for the same period last year. Net income attributable to Class A common stockholders for the six month period ended June 30, 2008 was $0.1 million, or $0.01 per diluted share.

     EBITDA was $5.3 million for the six months ended June 30, 2008, a decrease of $25.6 million or 82.9% compared to the same period in the prior year.

     The financial results presented in this earnings press release reflect the consolidated financial position and results of operations of Holliday GP Corp., HFF, Inc.’s wholly-owned subsidiary and sole general partner of each of the Operating Partnerships (Holliday GP), HFF Partnership Holdings LLC, the Operating Partnerships, and HFF, Inc. for all periods presented. The minority interest relates to the ownership interests of Holdings in the Operating Partnerships following the initial public offering. For a discussion of the adjustments relating to the reorganization transactions and the initial public offering, see Note (1) to the financial statements included in this earnings press release. For more information regarding the transactions associated with the initial public offering, please refer to the Company’s prospectus filed with the Securities and Exchange Commission on January 31, 2007.

HFF, Inc. reports second quarter 2008 financial and transaction production results

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HFF, Inc.
Consolidated Operating Results (1)
(dollars in thousands, except per share data)
(Unaudited)

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2008			2007			2008			2007
Revenue	$	43,589		$	79,786		$	75,769		$	135,331
Operating expenses:
Cost of services		27,041			44,355			49,351			77,688
Operating, administrative and other		12,380			15,174			23,054			28,652
Depreciation and amortization		742			878			1,476			1,898
Total expenses		40,163			60,407			73,881			108,238
Operating income		3,426			19,379			1,888			27,093
Interest and other income, net		920			994			1,926			1,916
Interest expense		(5	)		(6	)		(11	)		(400	)
Income before income taxes and minority interest		4,341			20,367			3,803			28,609
Income tax expense		361			3,796			884			4,892
Income before minority interest		3,980			16,571			2,919			23,717
Minority interest (2)		2,912			11,513			2,814			15,421
Net income	$	1,068		$	5,058		$	105		$	8,296
Less net income earned prior to IPO and reorganization		—			—			—			(1,893	)
Net income available to stockholders	$	1,068		$	5,058		$	105		$	6,403
Earnings per share — basic	$	0.06		$	0.31		$	0.01		$	0.48
Earnings per share — diluted	$	0.06		$	0.31		$	0.01		$	0.48
EBITDA	$	5,088		$	21,251		$	5,290		$	30,907

Production Volume and Loan Servicing Summary

     The reported volume data presented below is provided for informational purposes only, is unaudited and is estimated based on the Company’s internal database.

Second Quarter Production Volume Highlights

     The second quarter of 2008 was again impacted by the continuing and further deterioration in credit, liquidity and investor confidence in the global capital markets including those related to the U.S. commercial real estate sector. As has been the case in past quarters, these conditions have caused a number of capital sources to cease or significantly curtail their lending in several of their lending platforms, especially in the U.S. commercial real estate capital markets, which has had a significant adverse impact on the Company’s production volume for the second quarter 2008. Production volume for the second quarter totaled

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approximately $7.5 billion on 192 transactions, compared to second quarter 2007 production volume of approximately $14.3 billion on 344 transactions, which is a 47.5% decrease in production volume and a 44.2% decrease in the number of transactions.

• Debt Placement production volume was approximately $4.6 billion in the second quarter of 2008, representing a 42.4% decrease from second quarter 2007 volume of approximately $8.0 billion.

• Investment Sales production volume was approximately $2.1 billion in the second quarter of 2008, representing a 61.7% decrease from second quarter 2007 volume of approximately $5.6 billion.

• Structured Finance production volume was approximately $178.0 million in the second quarter of 2008, representing a 59.4% decrease from the second quarter 2007 volume of approximately $438.2 million.

• Note Sales and Note Sale Advisory Services production volume was approximately $547.4 million for the second quarter 2008, representing an increase of 149.2% from second quarter 2007 volume of more than $219.7 million.

• The amount of active private equity discretionary fund transactions at the end of the second quarter 2008 on which HFF Securities has been engaged and may recognize additional future revenue is approximately $2.0 billion compared to approximately $1.9 billion at the end of second quarter of 2007, representing an 8.3% increase.

• The principal balance of HFF’s Loan Servicing portfolio increased 14.3% to approximately $23.7 billion at the end of the second quarter 2008 from approximately $20.8 billion at the end of the second quarter 2007.

HFF, Inc. reports second quarter 2008 financial and transaction production results

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Unaudited Production Volume by Platform

	(dollars in thousands)
	For the Three Months Ended June 30,
	2008				2007
By Platform	Production Volume		# of Transactions		Production Volume		# of Transactions
Debt Placement	$	4,625,740		135	$	8,029,316		258
Investment Sales		2,147,884		38		5,601,248		55
Structured Finance		178,033		13		438,150		25
Note Sales & Note Sale Advisory		547,440		6		219,709		6
Total Transaction Volume	$	7,499,097		192	$	14,288,423		344
Average Transaction Size	$	39,058			$	41,536

	Fund/Loan Balance		# of Loans		Fund/Loan Balance		# of Loans
Private Equity Discretionary Funds	$	2,020,500			$	1,865,500
Loan Servicing Portfolio Balance	$	23,745,505		2,040	$	20,778,685		1,885

Six Month Production Volume

     Production volumes for the six months ended June 30, 2008 totaled more than $11.5 billion on 358 transactions, representing a 52.8% decrease in production volume and a 47.4% decrease in the number of transactions when compared to the production volumes of approximately $24.4 billion on 680 transactions for the comparable period in 2007. The average transaction size for the six months ended June 30, 2008 was $32.2 million, representing a 10.3% decrease from the comparable figure of $35.9 million in the first six months of 2007.

	(dollars in thousands)
	For the Six Months Ended June 30,
	2008				2007
	Production Volume		# of Transactions		Production Volume		# of Transactions
By Platform
Debt Placement	$	6,961,329		259	$	13,373,480		520
Investment Sales		3,611,114		69		9,888,586		102
Structured Finance		388,315		23		814,558		51
Note Sales & Note Sale Advisory		566,723		7		336,920		7
Total Transaction Volume	$	11,527,481		358	$	24,413,544		680
Average Transaction Size	$	32,200			$	35,902

	Fund/Loan Balance		# of Loans		Fund/Loan Balance		# of Loans
Private Equity Discretionary Funds	$	2,020,500			$	1,865,500
Loan Servicing Portfolio Balance	$	23,745,505		2,040	$	20,778,685		1,885

HFF, Inc. reports second quarter 2008 financial and transaction production results

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Business Expansion Highlights

     Pursuant to its strategic growth initiatives, HFF continued to expand during second quarter 2008, with the addition of 6 transaction professionals and 4 production support personnel, bringing total employment to 491, which is a 9.1% net increase from the second quarter 2007 employment level of 450.

     “Our second quarter and year-to-date results were clearly impacted by the continuing adverse conditions in the global and domestic capital markets, which have seen a continuing and unprecedented level of write-offs and loan loss reserves by both domestic and international financial institutions, as well as a continued weakening of the U.S. economy at the consumer level, which is now starting to impact other parts of the economy,” said John H. Pelusi, Jr., HFF, Inc.’s chief executive officer. “As we have said throughout this period of uncertainty and volatility, we will continue to manage and grow through these unsettled market conditions. We remain focused on our strategic business expansion plan to position the Company for the future by taking advantage of our strong balance sheet, our solid cash and liquidity position, and our fully-integrated capital markets services platform by adding high-quality production personnel through both organic advancements and external recruitment.”

     “We would like to express our appreciation to our clients who continued to show their confidence in our ability to perform value-added services for their commercial real estate and capital markets needs, as evidenced by the nearly $12 billion in consummated transaction volume during the first six months in these very demanding and challenging times. We would like to also thank each of our associates who have consistently demonstrated their ability to quickly adapt to this challenging environment by sharing their collective knowledge from each transaction with their fellow associates to provide superior value-added services to our clients,” added Mr. Pelusi.

Non-GAAP Financial Measures

     This earnings press release contains a Non-GAAP measure, EBITDA, which as calculated by the Company, is not necessarily comparable to similarly titled measures reported by other companies. Additionally, EBITDA is not a measurement of financial performance or liquidity under GAAP and should not be considered as an alternative to the Company’s other financial information determined under GAAP. For a description of the Company’s use of EBITDA and a reconciliation of EBITDA with Net Income, see the section of this press release titled “EBITDA Reconciliation.”

HFF, Inc. reports second quarter 2008 financial and transaction production results

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Earnings Conference Call

     The Company’s management will hold a conference call to discuss second quarter 2008 financial results on Tuesday, August 5th, at 8:30 a.m. Eastern Time. To listen, participants should dial 866-202-3109 in the U.S and 617-213-8844 for international callers approximately 10 minutes prior to the start of the call and enter participant code 61728489. A replay will become available after 10:30 a.m. Eastern Time on August 5th and will continue through September 5, 2008, by dialing 888-286-8010 (U.S. callers) and 617-801-6888 (international callers) and entering participant code 96009024.

     The live broadcast of the Company’s quarterly conference call will be available online on its website at www.hfflp.com on Tuesday, August 5th, beginning at 8:30 a.m. Eastern Time. The broadcast will be available on the Company’s website for one month. Related presentation materials will be posted to the “Investor Relations” section of the Company’s website prior to the call. The presentation materials will be available in Adobe Acrobat format.

HFF, Inc. reports second quarter 2008 financial and transaction production results

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About HFF, Inc.

     Through its subsidiaries, Holliday Fenoglio Fowler, L.P. and HFF Securities L.P., the Company operates out of 18 offices nationwide and is one of the leading providers of commercial real estate and capital markets services, by transaction volume, to the U.S. commercial real estate industry. The Company offers clients a fully integrated national capital markets platform including debt placement, investment sales, structured finance, private equity, investment banking and advisory services, note sales and note sale advisory services and commercial loan servicing.

Certain statements in this earnings press release are “forward-looking statements” within the meaning of the federal securities laws. Statements about our beliefs and expectations and statements containing the words “may,” “could,” “would,” “should,” “believe,” “expect,” “anticipate,” “plan,” “estimate,” “target,” “project,” “intend” and similar expressions constitute forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results and performance in future periods to be materially different from any future results or performance suggested in forward-looking statements in this earnings press release. Investors, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. Any forward-looking statements speak only as of the date of this earnings press release and, except to the extent required by applicable securities laws, the Company expressly disclaims any obligation to update or revise any of them to reflect actual results, any changes in expectations or any change in events. If the Company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements. Factors that could cause results to differ materially include, but are not limited to: (1) general economic conditions and commercial real estate market conditions, including the current conditions in the global markets and, in particular, the U.S. debt markets; (2) the Company’s ability to retain and attract transaction professionals; (3) the Company’s ability to retain its business philosophy and partnership culture and other risks associated with our transformation to a public company; (4) competitive pressures; (5) risks related to our organizational structure; and (6) other factors discussed in our public filings, including the risk factors included in the Company’s most recent Annual Report on Form 10-K.

Additional information concerning factors that may influence HFF, Inc.’s financial information is discussed under “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Quantitative and Qualitative Disclosures About Market Risk” and “Forward-Looking Statements” in the Company’s most recent Annual Report on Form 10-K, as well as in the Company’s press releases and other periodic filings with the Securities and Exchange Commission. Such information and filings are available publicly and may be obtained from the Company’s web site at www.hfflp.com or upon request from the HFF, Inc. Investor Relations Department at investorrelations@hfflp.com.

HFF, Inc. reports second quarter 2008 financial and transaction production results

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HFF, Inc.
Consolidated Balance Sheets (1)
(dollars in thousands)
(Unaudited)

	June 30,			December 31,
	2008			2007
ASSETS
Cash, cash equivalents and restricted cash	$	31,016		$	44,109
Investments		9,920			—
Accounts receivable, receivable from affiliate and prepaids		12,347			6,742
Mortgage notes receivable		101,015			41,000
Property, plant and equipment, net		5,997			6,789
Deferred tax asset, net		123,900			131,752
Intangible assets, net		10,139			9,481
Other noncurrent assets		518			603
	$	294,852		$	240,476
LIABILITIES AND STOCKHOLDERS EQUITY
Warehouse line of credit	$	101,015		$	41,000
Accrued compensation, accounts payable and other current liabilities		12,585			17,379
Long-term debt (includes current portion)		194			189
Deferred rent credit and other liabilities		4,233			4,674
Payable to minority interest holder under tax receivable agreement		113,826			117,406
Total liabilities		231,853			180,648
Minority interest		24,542			21,784
Class A Common Stock, par value $0.01 per share, 175,000,000 shares		164			164
authorized, 16,446,480 and 16,445,000 shares outstanding, respectively
Class B Common Stock, par value $0.01 per share, 1 share		—			—
authorized, 1 share issued and outstanding
Additional paid in capital		25,666			25,353
Accumulated other comprehensive income, net of taxes		(5	)		—
Retained earnings		12,632			12,527
Total stockholders equity		38,457			38,044
	$	294,852		$	240,476

Notes

(1) The Company’s consolidated operating results and balance sheets for all periods presented herein give effect to the reorganization transactions made in connection with its initial public offering. In connection with the initial public offering consummated on January 30, 2007, the purchase of shares of Holliday GP and partnership units in each of the Operating Partnerships are treated as a reorganization of entities under common control for financial reporting purposes. Accordingly, the net assets of Holdings purchased by the Company are reported in the consolidated financial statements of HFF, Inc. at Holdings’ historical cost. For more information regarding the transactions associated with the initial public offering, please refer to the Company’s prospectus filed with the Securities and Exchange Commission on January 31, 2007.

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(2) The minority interest adjustment on the consolidated financials statements of HFF, Inc. relates to the ownership interest of Holdings in the Operating Partnerships as a result of the initial public offering. As the sole stockholder of Holliday GP (the sole general partner of the Operating Partnerships), the Company operates and controls all of the business and affairs of the Operating Partnerships. The Company consolidates the financial results of the Operating Partnerships and the ownership interest of Holdings in the Operating Partnerships is reflected as a minority interest in HFF, Inc’s consolidated financial statements. The minority interest presented in the Company’s Consolidated Operating Results is calculated based on the income from the Operating Partnerships. In connection with the reorganization transactions, the initial public offering on January 30, 2007, and the underwriters’ exercise of their option to purchase an additional 2,145,000 shares of Class A common stock on February 22, 2007, the first quarter 2007 is segregated into three distinct periods representing different ownership interests in the Operating Partnerships by HFF, Inc. and Holdings during each of these three periods.

The table below sets forth the minority interest reported on the Company’s Consolidated Operating Results for the three and six months ended June 30, 2008 and June 30, 2007:

Minority Interest Calculation
(dollars in thousands)

	Period		Period			Period			Three		Three			Six		Three			Three			Six
	1/1/07		1/31/07			2/22/07			months		months			months		months			months			months
	through		Through			through			ended		ended			ended		ended			Ended			ended
	1/30/07		2/21/07			3/31/07			3/31/07		6/30/07			6/30/07		3/31/08			6/30/08			6/30/08
Net income (loss) from operating partnerships	$	1,922	$	1,683		$	5,206		$	8,811	$	20,814		$	29,625	$	(177	)	$	5,265		$	5,088
Minority interest ownership percentage				61.14	%		55.31	%				55.31	%				55.31	%		55.31	%		55.31	%
Minority interest			$	1,029		$	2,879		$	3,908	$	11,513		$	15,421	$	(98	)	$	2,912		$	2,814

EBITDA Reconciliation

     The Company defines EBITDA as net income before interest expense, income taxes, depreciation and amortization and income reported to the minority interest holder. The Company uses EBITDA in its business operations to, among other things, evaluate the performance of its business, develop budgets and measure its performance against those budgets. The Company also believes that analysts and investors use

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EBITDA as a supplemental measure to evaluate its overall operating performance. However, EBITDA has material limitations as an analytical tool and you should not consider this in isolation, or as a substitute for analysis of our results as reported under GAAP. The Company finds it as a useful tool to assist in evaluating performance because it eliminates items related to capital structure and taxes. The items that the Company has eliminated from net income in determining EBITDA are interest expense, income taxes, depreciation of fixed assets and amortization of intangible assets, and minority interest. Note that the Company classifies the interest on the warehouse line of credit as an operating expense and, accordingly, it is not eliminated from net income in determining EBITDA. In addition, note that the Company includes in net income the income upon the initial recognition of mortgage servicing rights and, accordingly, it is included in net income in determining EBITDA. However, some of these eliminated items are significant to the Company’s business. For example, (i) interest expense is a necessary element of the Company’s costs and ability to generate revenue because it incurs interest expense related to any outstanding indebtedness, (ii) payment of income taxes is a necessary element of the Company’s costs and (iii) depreciation and amortization are necessary elements of the Company’s costs. Any measure that eliminates components of the Company’s capital structure and costs associated with carrying significant amounts of fixed assets on its balance sheet has material limitations as a performance measure. In light of the foregoing limitations, the Company does not rely solely on EBITDA as a performance measure and also considers its GAAP results. EBITDA is not a measurement of the Company’s financial performance under GAAP and should not be considered as an alternative to net income, operating income or any other measures derived in accordance with GAAP. Because EBITDA is not calculated in the same manner by all companies, it may not be comparable to other similarly titled measures used by other companies.

     Set forth below is an unaudited reconciliation of consolidated net income to EBITDA for HFF, Inc. for the three months and six months ending June 30, 2008 and 2007:

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EBITDA for the Company is calculated as follows:
(dollars in thousands)

	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2008		2007		2008		2007
Net income	$	1,068	$	5,058	$	105	$	8,296
Add:
Interest expense		5		6		11		400
Income tax expense		361		3,796		884		4,892
Depreciation and amortization		742		878		1,476		1,898
Minority interest		2,912		11,513		2,814		15,421
EBITDA	$	5,088	$	21,251	$	5,290	$	30,907

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