Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements Of Cash Flows

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Condensed Consolidated Statements Of Cash Flows - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2015
Jun. 30, 2014
Cash flows from operating activities:      
Net (loss) income $ (2,477) $ (6,049) $ 7,187
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:      
Change in fair value of contingent consideration   (31) (12)
Adjustment to deferred rent   104 (182)
Amortization of intangible assets   10,240 5,640
Depreciation and other amortization   3,042 1,986
Loss on extinguishment of debt 0 252 314
Amortization of debt discount   339 257
Amortization of debt issue cost   188 198
Amortization of retention and forgivable loans   5,608 5,673
Deferred income taxes   (2,122) 532
Benefit attributable to reduction of goodwill   38 39
Non-cash interest expense on forgivable loans   309 419
Non-cash compensation expense 2,424 5,684 4,010
Loss on write-off of receivable from subtenant   855 0
Loss on write-off of furniture, fixtures and leasehold improvements, net   8 6
(Increase) decrease in operating assets, net of effects of acquisition:      
Securities owned, at fair value   1,451 302
Receivables from clearing broker   (12,192) (4,926)
Receivables from other broker-dealers   (2,599) (3,604)
Other receivables, net   1,664 (2,617)
Notes receivable from financial advisors, net   (2,480) (2,929)
Cash surrender value of life insurance   659 447
Other assets   618 (288)
Increase (decrease) in operating liabilities, net of effects of acquisition:      
Securities sold, but not yet purchased, at fair value   4,953 270
Accrued compensation   (5,049) (3,005)
Accrued interest   (428) (275)
Commissions and fees payable   2,579 5,906
Deferred compensation liability   (268) (154)
Accounts payable and accrued liabilities   (8,900) (5,403)
Net cash (used in) provided by operating activities   (1,527) 9,791
Cash flows from investing activities:      
Purchases of fixed assets (2,399) (4,789) (4,725)
(Increase) decrease in restricted assets   (180) 100
Acquisition of SSN, net of cash acquired   (16,919) 0
Acquisition of certain assets of Dalton   (2,100) 0
Net cash used in investing activities   (23,988) (4,625)
Cash flows from financing activities:      
Issuance of Series A preferred stock   79,150 47,011
Issuance of common stock   1,103 1,571
Series A preferred stock dividends paid   (13,484) (6,935)
Repurchases of common stock   (5,437) (3,416)
Term loan additional borrowing   0 500
Principal repayments on notes payable   (14,160) (10,485)
Principal repayments under revolving credit facility, net   (236) 0
Third party investment in subsidiary   40 0
Net cash provided by financing activities   46,976 28,246
Net increase in cash and cash equivalents   21,461 33,412
Cash and cash equivalents, beginning of period   103,087 50,329
Cash and cash equivalents, end of period 124,548 124,548 83,741
Supplemental cash flow information:      
Interest paid   2,304 2,887
Taxes paid   1,434 $ 1,507
Securities Service Network, Inc. (SSN)      
Cash flows from operating activities:      
Net (loss) income (18) 618  
Supplemental cash flow information:      
Assets acquired 52,175 52,175  
Liabilities assumed (4,888) (4,888)  
Total purchase price 47,287 47,287  
Promissory note   (18,697)  
Payable to seller (3,590) (3,590)  
Cash paid in acquisition   25,000  
Cash acquired in acquisition   (8,081)  
Net cash paid in acquisition   16,919  
Dalton      
Supplemental cash flow information:      
Assets acquired 2,689 2,689  
Payable to seller $ (589) (589)  
Net cash paid in acquisition   $ 2,100