Revenue during the quarter went down marginally by 2.80 percent to $274.32 million from $282.21 million in the previous year period. Operating margin for the quarter stood at negative 1.09 percent as compared to a positive 0.20 percent for the previous year period.

Operating loss for the quarter was $3 million, compared with an operating income of $0.57 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $5.56 million compared with $8.36 million in the prior year period. At the same time, adjusted EBITDA margin contracted 93 basis points in the quarter to 2.03 percent from 2.96 percent in the last year period.

Richard Lampen, president and chief executive officer of Ladenburg, said, “Our industry has been impacted by an unprecedented wave of regulatory change, including the Department of Labor’s pending fiduciary rule. We are pleased with the continued strength of our core independent broker-dealer and advisory business (IBD), with its high levels of recurring revenues, which represents over 90% of our overall revenues. Despite challenging market conditions and the costs of navigating and preparing for the regulatory change, including its impact on commissions revenues, we have been able to maintain margins in that business due to an enterprise-wide focus on expense and revenue synergies which will continue into 2017 and beyond. Our year-over-year results continue to reflect the significant weakness in Ladenburg’s investment banking business. After three years of strong contribution from this business segment, 2016 has been a difficult year as the softness in equity capital raising for small and mid-cap companies continues. We have acted aggressively to reduce the investment bank’s cost structure and believe our banking franchise remains well positioned to deliver solutions to our varied client base and to generate long-term returns for shareholders.”