Annual report pursuant to section 13 and 15(d)

Condensed Consolidated Statements Of Cash Flows

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Condensed Consolidated Statements Of Cash Flows (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Cash flows from operating activities:      
Net (loss) income $ (16,354) $ 3,893 $ (10,951)
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:      
Change in fair value of contingent consideration (7,111) 0 0
Adjustment to deferred rent (356) (595) (450)
Amortization of intangible assets 11,683 4,060 2,941
Amortization of debt discount 1,993 39 289
Amortization of debt issue cost 478 642 282
Amortization of retention loans 7,346 1,634 0
Depreciation and other amortization 4,378 1,572 1,037
Deferred income taxes 877 (16,590) 693
Benefit attributable to reduction of goodwill 71 84 35
Non-cash interest expense on forgivable loan 1,258 423 337
Gain on forgiveness of accrued interest under forgivable loans (1,365) (450) (525)
Gain on forgiveness of principal of note payable under forgivable loans (3,929) (1,429) (1,429)
Non-cash compensation expense 4,744 4,014 5,439
Write-off of furniture, fixtures and leasehold improvements, net 7 0 24
(Increase) decrease in operating assets, net of effects of acquisitions:      
Securities owned, at fair value (64) 669 136
Receivables from clearing brokers 1,426 (8,203) (555)
Receivables from other broker-dealers (1,636) 851 (1,036)
Other receivables, net (1,661) (6,209) (2,888)
Notes receivable from financial advisors, net (2,186) (19,634) (71)
Cash surrender value of life insurance 954 924 0
Other assets (2,081) 25 229
Increase (decrease) in operating liabilities, net of effects of acquisitions:      
Securities sold, but not yet purchased, at fair value 214 58 1
Accrued compensation 1,518 653 964
Accrued interest 1,680 2,964 150
Commissions and fees payable 5,679 912 3,307
Deferred compensation liability (746) (833) 0
Accounts payable and accrued liabilities 831 (2,823) 941
Net cash provided by (used in) operating activities 7,648 (33,349) (1,100)
Cash flows from investing activities:      
Payment for business acquisition (552) 0 0
Payment for Premier Trust acquisition, net of cash received 0 0 (162)
Payment for Securities America acquisition, net of cash received 0 (125,685) 0
Purchases of fixed assets (5,477) (1,439) (608)
Decrease in restricted assets 0 50 150
Other 99 0 0
Net cash used in investing activities (5,930) (127,074) (620)
Cash flows from financing activities:      
Issuance of common stock in private equity offering, net of offering expenses of $122 0 0 13,928
Issuance of common stock other than private equity offerings 795 682 773
Repurchases of common stock (1,407) (1,493) (64)
Issuance of notes payable and warrants 0 175,700 0
Principal borrowings (payments) under revolvingcredit facility, net 2,950 5,600 (1,500)
Principal payments on notes payable (219) (1,492) (6,080)
Net cash provided by financing activities 2,119 178,997 7,057
Net increase in cash and cash equivalents 3,837 18,574 5,337
Cash and cash equivalents, beginning of period 31,597 13,023 7,686
Cash and cash equivalents, end of period 35,434 31,597 13,023
Supplemental cash flow information:      
Interest paid 22,968 2,461 2,162
Taxes paid 488 372 87
Noncash investing and financing transactions:      
Warrants issued to lenders in connection with 2011 notes payable 0 9,428 0
Acquisition of Premier Trust:
      
Noncash investing and financing transactions:      
Assets acquired 0 0 2,565
Liabilities assumed 0 0 (205)
Net assets acquired 0 0 2,360
Fair value of contingent earnout 0 0  
Note issued in acquisition 0   (1,161)
Cash paid in acquisition 0 0 1,199
Cash acquired in acquisition 0 0 (1,037)
Net cash paid in acquisition 0 0 162
Acquisition of Securities America:
      
Noncash investing and financing transactions:      
Assets acquired 0 232,059 0
Liabilities assumed 0 (74,948) 0
Net assets acquired 0 157,111 0
Fair value of contingent earnout 0 (7,111)  
Note issued in acquisition     0
Cash paid in acquisition 0 150,000 0
Cash acquired in acquisition 0 (24,315) 0
Net cash paid in acquisition 0 125,685 0
Acquisition of business
      
Noncash investing and financing transactions:      
Assets acquired 1,364 0 0
Liabilities assumed 0 0 0
Net assets acquired 1,364 0 0
Fair value of contingent earnout (812) 0  
Note issued in acquisition     0
Cash paid in acquisition 552 0 0
Cash acquired in acquisition 0 0 0
Net cash paid in acquisition $ 552 $ 0 $ 0