Segment Information (Tables)

3 Months Ended

Mar. 31, 2014

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 months ended March 31, 2014 and 2013, respectively:

	Revenue (a)
	Three months ended March 31,
	2014		2013
	(in thousands)
Real Estate Franchise Services	$	39,099	$	35,650
Brokerage and Other		2,781		3,425
Total segment reporting revenues	$	41,880	$	39,075

(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 $422,000 and $353,000 for the three months ended March 31, 2014 and 2013, respectively. Such amounts are eliminated through the Brokerage and Other reportable segment.

	Adjusted EBITDA
	Three months ended March 31,
	2014			2013
	(in thousands)
Real Estate Franchise Services	$	18,675		$	16,246
Brokerage and Other		(2,424	)		(813	)
Total segment reporting adjusted EBITDA	$	16,251		$	15,433

Segment Adjusted EBITDA to Net Income

A reconciliation of the Company’s Adjusted EBITDA for its reportable segments to the Company’s consolidated balances is as follows:

	Three months ended March 31,
	2014			2013
	(in thousands)
Segment Adjusted EBITDA	$	16,251		$	15,433
Less:
Depreciation and amortization		3,938			3,725
Interest expense, net		2,385			3,440
Gain on sale or disposition of assets and sublease		(178	)		(143	)
Loss on early extinguishment of debt		-			134
Equity-based compensation		258			380
Non-cash straight-line rent expense		147			339
Chairman executive compensation		-			750
Acquisition integration costs		18			-
Public offering related expenses		-			947
Income before provision for income taxes		9,683			5,861
Provision for income taxes		1,885			454
Net income	$	7,798		$	5,407