Segment Information (Tables) (RMCO)

9 Months Ended

Sep. 30, 2013

RMCO

Schedule of Company's Reportable Segments Revenue and Adjusted EBITDA

The following tables present the results of the Company’s reportable segments for the three and nine months ended September 30, 2013 and 2012, respectively (in thousands):

	Revenue (a)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Real Estate Franchise Services	$	36,211	$	34,490	$	106,746	$	97,382
Brokerage and Other (b)		4,101		3,939		11,882		11,215
Total segment revenue	$	40,312	$	38,429	$	118,628	$	108,597

(a) Transactions between the Real Estate Franchise Services and the Brokerage and Other reportable segments are eliminated in consolidation. Revenues for the Real Estate Franchise Services segment include intercompany amounts paid from the Company’s brokerage services business of $435,000 and $427,000 for the three months ended September 30, 2013 and 2012, respectively, and $1,318,000 and $1,295,000 for the nine months ended September 30, 2013 and 2012, respectively. Such amounts are eliminated through the Brokerage and Other reportable segment.

(b) Includes the elimination of transactions between the Real Estate Franchise Services and the Brokerage and Other reportable segments.

	Adjusted EBITDA
	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Real Estate Franchise Services	$	21,495	$	18,589	$	58,276	$	48,713
Brokerage and Other (c)		580		896		499		177
Total segment Adjusted EBITDA	$	22,075	$	19,485	$	58,775	$	48,890

(c) Includes the elimination of transactions between the Real Estate Franchise Services and the Brokerage and Other reportable segments.

Segment Adjusted EBITDA to Net Income

	Three Months Ended September 30,
	2013			2012				2013				2012
Segment Adjusted EBITDA	$	22,075		$	19,485		$		58,775		$		48,890
Less:
Depreciation and amortization		3,656			2,788				11,088				9,231
Interest expense, net		5,046			2,835				11,829				8,567
Loss on early extinguishment of debt		1,664			—				1,798				136
Equity-based compensation		—			—				701				—
Non-cash straight-line rent expense		261			270				970				1,223
Gain on sale of assets and sublease		(164	)		(144	)			(411	)			(442	)
Chairman executive compensation		750			750				2,250				2,250
Acquisition integration costs		27			—				249				—
IPO expenses		2,436			—				5,916				—
Income before income taxes		8,399			12,986				24,385				27,925
Provision for income taxes		702			636				1,733				1,740
Net income	$	7,697		$	12,350		$		22,652		$		26,185

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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