Segment Information (Tables)

3 Months Ended

Mar. 31, 2020

Segment Information

Schedule of Revenue from External Customers By Segment

​
The following table presents revenue from external customers by segment (in thousands):

	Three Months Ended March 31,
	2020		2019
Continuing franchise fees	$	22,877	$	24,117
Annual dues		8,921		8,854
Broker fees		9,444		8,588
Franchise sales and other revenue		8,663		8,265
Total RE/MAX Franchising		49,905		49,824
Continuing franchise fees		1,266		839
Franchise sales and other revenue		192		120
Total Motto Franchising		1,458		959
Marketing Funds fees		17,522		18,772
Other		1,387		1,623
Total revenue	$	70,272	$	71,178

Schedule of Revenue and Adjusted EBITDA of the Company's Reportable Segment

The following table presents a reconciliation of Adjusted EBITDA by segment to income before provision for income taxes (in thousands):

	Three Months Ended March 31,
	2020		2019
Adjusted EBITDA: RE/MAX Franchising	$	20,731	$	24,144
Adjusted EBITDA: Motto Franchising		(578)		(741)
Adjusted EBITDA: Other		(614)		(413)
Adjusted EBITDA: Consolidated		19,539		22,990
Gain (loss) on sale or disposition of assets		11		(379)
Equity-based compensation expense		(2,186)		(4,051)
Acquisition-related expense (a)		(566)		(72)
Gain on reduction in tax receivable agreement liability		500		—
Fair value adjustments to contingent consideration (b)		505		70
Interest income		269		320
Interest expense		(2,682)		(3,155)
Depreciation and amortization		(6,310)		(5,558)
Income before provision for income taxes	$	9,080	$	10,165

(a) Acquisition-related expense includes legal, accounting, advisory and consulting fees incurred in connection with the acquisition and integration of acquired companies.

(b) Fair value adjustments to contingent consideration include amounts recognized for changes in the estimated fair value of the contingent consideration liability. See Note 9, Fair Value Measurements for additional information.