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Segment And Geographic Information
 12 Months Ended
Dec. 31, 2015
Segment and Geographic Information [Abstract]  
Segment And Geographic Information

27. SEGMENT AND GEOGRAPHIC INFORMATION

Segment Information

The Company operates within three business segments: Capital Markets, Principal Investing, and Asset Management. See note 1.

The Company’s business segment information was prepared using the following methodologies and generally represents the information that is relied upon by management in its decision making processes. 

(a) Revenues and expenses directly associated with each business segment are included in determining net income / (loss) by segment.

(b) Indirect expenses (such as general and administrative expenses including executive and indirect overhead costs) not directly associated with specific business segments are not allocated to the business segments’ statements of operations. Accordingly, the Company presents segment information consistent with internal management reporting. See note (1) in the table below for more detail on unallocated items. The following tables present the financial information for the Company’s segments for the periods indicated.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEGMENT INFORMATION

Statement of Operations Information

For the Year Ended December 31, 2015

(Dollars in Thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital

 

Asset

 

Principal

 

Segment

 

Unallocated

 

 

 

 

 

Markets

 

Management

 

Investing

 

Total

 

(1)

 

Total

Net trading

 

$

 31,026 

 

$

 -

 

$

 -

 

$

 31,026 

 

$

 -

 

$

 31,026 

Asset management

 

 

 -

 

 

 9,682 

 

 

 -

 

 

 9,682 

 

 

 -

 

 

 9,682 

New issue and advisory

 

 

 5,370 

 

 

 -

 

 

 -

 

 

 5,370 

 

 

 -

 

 

 5,370 

Principal transactions and other income

 

 

 (1,759)

 

 

 3,568 

 

 

 (1,731)

 

 

 78 

 

 

 -

 

 

 78 

    Total revenues

 

 

 34,637 

 

 

 13,250 

 

 

 (1,731)

 

 

 46,156 

 

 

 -

 

 

 46,156 

    Total operating expenses

 

 

 32,276 

 

 

 4,523 

 

 

 503 

 

 

 37,302 

 

 

 10,515 

 

 

 47,817 

    Operating income / (loss)

 

 

 2,361 

 

 

 8,727 

 

 

 (2,234)

 

 

 8,854 

 

 

 (10,515)

 

 

 (1,661)

Income / (loss) from equity method affiliates

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

Other non-operating income / (expense)

 

 

 (29)

 

 

 -

 

 

 -

 

 

 (29)

 

 

 (3,893)

 

 

 (3,922)

    Income / (loss) before income taxes

 

 

 2,332 

 

 

 8,727 

 

 

 (2,234)

 

 

 8,825 

 

 

 (14,408)

 

 

 (5,583)

Income tax expense / (benefit)

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 85 

 

 

 85 

Net income / (loss)

 

 

 2,332 

 

 

 8,727 

 

 

 (2,234)

 

 

 8,825 

 

 

 (14,493)

 

 

 (5,668)

Less: Net income / (loss) attributable to the

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 non-controlling interest

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 (1,589)

 

 

 (1,589)

    Net income / (loss) attributable to IFMI

 

$

 2,332 

 

$

 8,727 

 

$

 (2,234)

 

$

 8,825 

 

$

 (12,904)

 

$

 (4,079)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other statement of operations data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization (included in

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 total operating expense)

 

$

 468 

 

$

 33 

 

$

 -

 

$

 501 

 

$

 232 

 

$

 733 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEGMENT INFORMATION

Statement of Operations Information

For the Year Ended December 31, 2014

(Dollars in Thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital

 

Asset

 

Principal

 

Segment

 

Unallocated

 

 

 

 

 

Markets

 

Management

 

Investing

 

Total

 

(1)

 

Total

Net trading

 

$

 28,056 

 

$

 -

 

$

 -

 

$

 28,056 

 

$

 -

 

$

 28,056 

Asset management

 

 

 -

 

 

 14,496 

 

 

 -

 

 

 14,496 

 

 

 -

 

 

 14,496 

New issue and advisory

 

 

 5,219 

 

 

 -

 

 

 -

 

 

 5,219 

 

 

 -

 

 

 5,219 

Principal transactions and other income

 

 

 397 

 

 

 5,362 

 

 

 2,220 

 

 

 7,979 

 

 

 -

 

 

 7,979 

    Total revenues

 

 

 33,672 

 

 

 19,858 

 

 

 2,220 

 

 

 55,750 

 

 

 -

 

 

 55,750 

    Total operating expenses

 

 

 32,831 

 

 

 10,500 

 

 

 370 

 

 

 43,701 

 

 

 11,761 

 

 

 55,462 

    Operating income / (loss)

 

 

 841 

 

 

 9,358 

 

 

 1,850 

 

 

 12,049 

 

 

 (11,761)

 

 

 288 

Income / (loss) from equity method affiliates

 

 

 -

 

 

 27 

 

 

 -

 

 

 27 

 

 

 -

 

 

 27 

Other non-operating income / (expense)

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 (4,401)

 

 

 (4,401)

    Income / (loss) before income taxes

 

 

 841 

 

 

 9,385 

 

 

 1,850 

 

 

 12,076 

 

 

 (16,162)

 

 

 (4,086)

Income tax expense / (benefit)

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 (414)

 

 

 (414)

Net income / (loss)

 

 

 841 

 

 

 9,385 

 

 

 1,850 

 

 

 12,076 

 

 

 (15,748)

 

 

 (3,672)

Less: Net income / (loss) attributable to the

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 non-controlling interest

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 (1,087)

 

 

 (1,087)

    Net income / (loss) attributable to IFMI

 

$

 841 

 

$

 9,385 

 

$

 1,850 

 

$

 12,076 

 

$

 (14,661)

 

$

 (2,585)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other statement of operations data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization (included in

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 total operating expense)

 

$

 756 

 

$

 57 

 

$

 -

 

$

 813 

 

$

 290 

 

$

 1,103 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEGMENT INFORMATION

Statement of Operations Information

For the Year Ended December 31, 2013

(Dollars in Thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital

 

Asset

 

Principal

 

Segment

 

Unallocated

 

 

 

 

 

Markets

 

Management

 

Investing

 

Total

 

(1)

 

Total

Net trading

 

$

 38,528 

 

$

 -

 

$

 -

 

$

 38,528 

 

$

 -

 

$

 38,528 

Asset management

 

 

 -

 

 

 19,239 

 

 

 -

 

 

 19,239 

 

 

 -

 

 

 19,239 

New issue and advisory

 

 

 6,418 

 

 

 -

 

 

 -

 

 

 6,418 

 

 

 -

 

 

 6,418 

Principal transactions and other income

 

 

 542 

 

 

 2,276 

 

 

 (9,486)

 

 

 (6,668)

 

 

 -

 

 

 (6,668)

    Total revenues

 

 

 45,488 

 

 

 21,515 

 

 

 (9,486)

 

 

 57,517 

 

 

 -

 

 

 57,517 

    Total operating expenses

 

 

 53,518 

 

 

 11,523 

 

 

 319 

 

 

 65,360 

 

 

 13,261 

 

 

 78,621 

    Operating income / (loss)

 

 

 (8,030)

 

 

 9,992 

 

 

 (9,805)

 

 

 (7,843)

 

 

 (13,261)

 

 

 (21,104)

Income / (loss) from equity method affiliates

 

 

 -

 

 

 546 

 

 

 1,282 

 

 

 1,828 

 

 

 -

 

 

 1,828 

Other non-operating income / (expense)

 

 

 (164)

 

 

 (9)

 

 

 -

 

 

 (173)

 

 

 (4,035)

 

 

 (4,208)

    Income / (loss) before income taxes

 

 

 (8,194)

 

 

 10,529 

 

 

 (8,523)

 

 

 (6,188)

 

 

 (17,296)

 

 

 (23,484)

Income tax expense / (benefit)

 

 

 14 

 

 

 -

 

 

 -

 

 

 14 

 

 

 (3,579)

 

 

 (3,565)

Net income / (loss)

 

 

 (8,208)

 

 

 10,529 

 

 

 (8,523)

 

 

 (6,202)

 

 

 (13,717)

 

 

 (19,919)

Less: Net income / (loss) attributable to the

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 non-controlling interest

 

 

 (9)

 

 

 -

 

 

 -

 

 

 (9)

 

 

 (6,592)

 

 

 (6,601)

    Net income / (loss) attributable to IFMI

 

$

 (8,199)

 

$

 10,529 

 

$

 (8,523)

 

$

 (6,193)

 

$

 (7,125)

 

$

 (13,318)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other statement of operations data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization (included in

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 total operating expense)

 

$

 795 

 

$

 317 

 

$

 -

 

$

 1,112 

 

$

 293 

 

$

 1,405 

 

(1)Unallocated includes certain expenses incurred by indirect overhead and support departments (such as the executive, finance, legal, information technology, human resources, risk, compliance, and other similar overhead and support departments). Some of the items not allocated include: (1) operating expenses (such as cash compensation and benefits, equity-based compensation expense, professional fees, travel and entertainment, consulting fees, and rent) related to support departments excluding certain departments that directly support the Capital Markets business segment; (2) interest expense on debt; and (3) income taxes. Management does not consider these items necessary for an understanding of the operating results of these business segments and such amounts are excluded in business segment reporting to the chief operating decision maker.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet Data

As of December 31, 2015

(Dollars in Thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital

 

Asset

 

Principal

 

Segment

 

Unallocated

 

 

 

 

 

Markets

 

Management

 

Investing

 

Total

 

(1)

 

Total

Total Assets

 

$

 281,813 

 

$

 3,245 

 

$

 15,039 

 

$

 300,097 

 

$

 8,728 

 

$

 308,825 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included within total assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Investment in equity method affiliates

 

$

 -

 

$

 -

 

$

 -

 

$

 -

 

$

 -

 

$

 -

 Goodwill (2)

 

$

 7,937 

 

$

 55 

 

$

 -

 

$

 7,992 

 

$

 -

 

$

 7,992 

 Intangible assets (2)

 

$

 166 

 

$

 -

 

$

 -

 

$

 166 

 

$

 -

 

$

 166 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet Data

As of December 31, 2014

(Dollars in Thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital

 

Asset

 

Principal

 

Segment

 

Unallocated

 

 

 

 

 

Markets

 

Management

 

Investing

 

Total

 

(1)

 

Total

Total Assets

 

$

 295,311 

 

$

 5,548 

 

$

 28,649 

 

$

 329,508 

 

$

 13,010 

 

$

 342,518 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included within total assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Investment in equity method affiliates

 

$

 -

 

$

 -

 

$

 -

 

$

 -

 

$

 -

 

$

 -

 Goodwill (2)

 

$

 7,937 

 

$

 55 

 

$

 -

 

$

 7,992 

 

$

 -

 

$

 7,992 

 Intangible assets (2)

 

$

 166 

 

$

 -

 

$

 -

 

$

 166 

 

$

 -

 

$

 166 

 

(1)Unallocated assets primarily include (1) amounts due from related parties; (2) furniture and equipment, net; and (3) other assets that are not considered necessary for an understanding of business segment assets and such amounts are excluded in business segment reporting to the chief operating decision maker.

(2)Goodwill and intangible assets are allocated to the Capital Markets and Asset Management business segments as indicated in the table from above.

Asset management total operating expenses include an impairment charge of $3,121 for the year ended December 31, 2014 related to the impairment of Cira SCM goodwill.

Geographic Information

The Company has conducted its business activities through offices in the following locations: (1) United States; (2) United Kingdom and other; and (3) Asia. Total revenues by geographic area are summarized as follows. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GEOGRAPHIC DATA

(Dollars in Thousands)

 

 

 

 

 

 

 

 

 

 

For the year ended December 31,

 

2015

 

2014

 

2013

Total Revenues:

 

 

 

 

 

 

 

 

United States

$

 39,524 

 

$

 44,991 

 

$

 44,043 

United Kingdom & Other

 

 6,632 

 

 

 10,636 

 

 

 11,178 

Asia

 

 -

 

 

 123 

 

 

 2,296 

 Total

$

 46,156 

 

$

 55,750 

 

$

 57,517 

 

Long-lived assets attributable to an individual country, other than the United States, are not material.  The Company no longer earns revenue in Asia effective with the sale of Star Asia Group.  See note 5.