Segment Information (Tables)

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

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, 2014 and 2013, respectively:

	Revenue (a)
	Three months ended September 30,				Nine months ended September 30,
	2014		2013		2014		2013
	(in thousands)
Real Estate Franchise Services	$	40,456	$	36,211	$	118,254	$	106,746
Brokerages		3,784		4,101		10,165		11,882
Consolidated revenue	$	44,240	$	40,312	$	128,419	$	118,628

(a) Transactions between the Real Estate Franchise Services and the Brokerages reportable segments are eliminated in consolidation. Revenues for the Real Estate Franchise Services reportable segment include intercompany amounts paid from the Company’s brokerage services business of $485,000 and $383,000 for the three months ended September 30, 2014 and 2013, respectively, and $1,369,000 and $1,130,000 for the nine months ended September 30, 2014 and 2013, respectively. Such amounts are eliminated in the Brokerages reportable segment.

Segment Adjusted EBITDA to Net Income

	Adjusted EBITDA
	Three months ended September 30,						Nine months ended September 30,
	2014			2013			2014			2013
	(in thousands)
Real Estate Franchise Services:
Net income	$	13,459		$	6,754		$	36,017		$	20,968
Depreciation and amortization		3,695			3,571			11,305			10,792
Interest expense		2,252			5,128			6,997			12,050
Interest income		(58	)		(82	)		(205	)		(224	)
Provision for income taxes		3,014			702			8,070			1,733
EBITDA		22,362			16,073			62,184			45,319
Gain on sale or disposition of assets and sublease		(87	)		(94	)		(369	)		(266	)
Loss on early extinguishment of debt		-			1,664			178			1,798
Non-recurring equity-based compensation		-			-			-			701
Non-cash straight-line rent expense		271			321			773			1,031
Chairman executive compensation		-			750			-			2,250
Acquisition integration costs		87			27			150			249
Public offering related expenses		-			2,436			-			5,916
Adjusted EBITDA	$	22,633		$	21,177		$	62,916		$	56,998
Brokerages:
Net income	$	596		$	943		$	345		$	1,684
Depreciation and amortization		72			85			212			296
Interest expense		3			-			10			3
Interest income		-			-			-			-
Provision for income taxes		102			-			60			-
EBITDA		773			1,028			627			1,983
Loss (gain) on sale or disposition of assets and sublease		35			(70	)		92			(145	)
Non-cash straight-line rent expense		(74	)		(60	)		(159	)		(61	)
Adjusted EBITDA	$	734		$	898		$	560		$	1,777
Consolidated:
Net income	$	14,055		$	7,697		$	36,362		$	22,652
Depreciation and amortization		3,767			3,656			11,517			11,088
Interest expense		2,255			5,128			7,007			12,053
Interest income		(58	)		(82	)		(205	)		(224	)
Provision for income taxes		3,116			702			8,130			1,733
EBITDA		23,135			17,101			62,811			47,302
Gain on sale or disposition of assets and sublease		(52	)		(164	)		(277	)		(411	)
Loss on early extinguishment of debt		-			1,664			178			1,798
Non-recurring equity-based compensation		-			-			-			701
Non-cash straight-line rent expense		197			261			614			970
Chairman executive compensation		-			750			-			2,250
Acquisition integration costs		87			27			150			249
Public offering related expenses		-			2,436			-			5,916
Adjusted EBITDA	$	23,367		$	22,075		$	63,476		$	58,775