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Segment Information
6 Months Ended
Jun. 30, 2021
Segment Information  
Segment Information

13. Segment Information

The Company operates under the following four operating segments: Real Estate, Mortgage, Marketing Funds and booj. Due to quantitative insignificance, the booj operating segment does not meet the criteria of a reportable segment and is included in “Other”. Mortgage does not meet the quantitative significance test; however, management has chosen to report results for the segment as it believes it will be a key driver of future success for Holdings. Management evaluates the operating results of its segments based upon revenue and adjusted earnings before interest, the provision for income taxes, depreciation and amortization and other non-cash and non-recurring cash charges or other items (“Adjusted EBITDA”). The Company’s presentation of Adjusted EBITDA may not be comparable to similar measures used by other companies. Except for the adjustments identified below in arriving at Adjusted EBITDA, the accounting policies of the reportable segments are the same as those described in the Company’s 2020 Annual Report on Form 10-K.


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

Three Months Ended June 30, 

Six Months Ended June 30, 

2021

2020

2021

2020

Continuing franchise fees

$

25,039

$

15,795

$

48,648

$

38,672

Annual dues

8,869

8,745

17,541

17,666

Broker fees

17,453

10,426

29,406

19,870

Franchise sales and other revenue

4,930

3,405

11,850

12,068

Total Real Estate

56,291

38,371

107,445

88,276

Continuing franchise fees

1,916

943

3,681

2,209

Franchise sales and other revenue

494

127

1,052

319

Total Mortgage

2,410

1,070

4,733

2,528

Marketing Funds fees

18,042

11,765

36,187

29,287

Other

503

1,001

1,176

2,388

Total revenue

$

77,246

$

52,207

$

149,541

$

122,479

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

Three Months Ended June 30, 

Six Months Ended June 30, 

2021

2020

2021

2020

Adjusted EBITDA: Real Estate

$

31,302

$

19,318

$

55,722

$

40,049

Adjusted EBITDA: Mortgage

(733)

(741)

(1,883)

(1,319)

Adjusted EBITDA: Other

(72)

332

(182)

(282)

Adjusted EBITDA: Consolidated

30,497

18,909

53,657

38,448

Gain (loss) on sale or disposition of assets, net

(1)

11

10

22

Equity-based compensation expense

(6,253)

(2,747)

(18,307)

(4,933)

Acquisition-related expense (a)

(3,928)

(328)

(4,871)

(894)

Gain on reduction in tax receivable agreement liability

(500)

Fair value adjustments to contingent consideration (b)

(290)

(150)

(10)

355

Interest income

19

34

182

303

Interest expense

(2,124)

(2,187)

(4,222)

(4,869)

Depreciation and amortization

(6,978)

(6,412)

(13,915)

(12,722)

Income before provision for income taxes

$

10,942

$

6,630

$

12,524

$

15,710

(a)Acquisition-related expense includes personnel, legal, accounting, advisory and consulting fees incurred in connection with acquisition activities 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 liabilities. See Note 9, Fair Value Measurements for additional information.