Segment Information (Tables)

9 Months Ended

Sep. 30, 2018

Schedule of Revenue of the Company's Reportable Segment

The following table presents revenue from external customers by segment for the three and nine months ended September 30, 2018 and 2017 (in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
			2017				2017
	2018		As adjusted*		2018		As adjusted*
Revenue:
RE/MAX Franchising	$	52,450	$	48,908	$	156,154	$	144,959
Other		2,416		163		5,631		245
Total revenue	$	54,866	$	49,071	$	161,785	$	145,204

*See Note 3, Revenue for more information.

Reconciliation of Adjusted EBITDA for its Reportable Segment to Consolidated Balances

The following table presents a reconciliation of Adjusted EBITDA by segment to income before provision for income taxes for the three and nine months ended September 30, 2018 and 2017 (in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
			2017				2017
	2018		As adjusted*		2018		As adjusted*
Adjusted EBITDA: RE/MAX Franchising	$	30,632	$	26,582	$	84,429	$	78,737
Adjusted EBITDA: Other		(1,169)		(698)		(3,377)		(2,169)
Adjusted EBITDA: Consolidated		29,463		25,884		81,052		76,568
Gain (loss) on sale or disposition of assets and sublease, net(a)		5		(3,980)		146		(3,859)
Equity-based compensation expense		(2,717)		(868)		(6,141)		(2,161)
Acquisition-related expense(b)		(141)		(3,566)		(1,628)		(4,398)
Special Committee investigation and remediation expense(c)		(111)		—		(2,761)		—
Fair value adjustments to contingent consideration(d)		940		(420)		860		(250)
Interest income		180		145		397		195
Interest expense		(3,050)		(2,598)		(8,945)		(7,414)
Depreciation and amortization		(5,608)		(4,286)		(15,252)		(15,678)
Income before provision for income taxes	$	18,961	$	10,311	$	47,728	$	43,003

*See Note 3, Revenue for more information.

(a)

Represents gain (loss) on the sale or disposition of assets as well as the gains (losses) on the sublease of a portion of our corporate headquarters office building.

(b)

Acquisition-related expense includes legal, accounting, advisory and consulting fees incurred in connection with the acquisition and integration of acquired companies that are included in “Selling, operating and administrative expenses” in the accompanying Condensed Consolidated Statements of Income.

(c)

Special Committee investigation and remediation expense relates to costs incurred in relation to the previously disclosed investigation by the special committee of independent directors of actions of certain members of our senior management and the implementation of the remediation plan.

(d)

Fair value adjustments to contingent consideration include amounts recognized for changes in the estimated fair value of the contingent consideration liability related to the acquisition of Full House. See Note 10, Fair Value Measurements for additional information.