Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

v3.5.0.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Cash flows from operating activities:    
Net loss $ (15,417) $ (6,049)
Adjustments to reconcile net (loss) to net cash used in operating activities:    
Change in fair value of contingent consideration 106 (31)
Adjustment to deferred rent (70) 104
Amortization of intangible assets 10,326 10,240
Loss on extinguishment of debt 0 252
Amortization of debt discount 327 339
Amortization of debt issue cost 188 188
Amortization of retention loans 2,978 5,608
Depreciation and other amortization 3,789 3,042
Deferred income taxes 6,460 (2,122)
Benefit attributable to reduction of goodwill 39 38
Non-cash interest expense on forgivable loan 205 309
Non-cash compensation expense 2,696 5,684
Write-off of receivable from subtenant 0 855
Loss on write-off of furniture, fixtures and leasehold improvements, net 1 8
(Increase) decrease in operating assets, net of effects of acquisition:    
Securities owned, at fair value 316 1,451
Receivables from clearing brokers 12,581 (12,192)
Receivables from other broker-dealers (130) (2,599)
Other receivables, net (4,310) 1,664
Notes receivable from financial advisors, net (3,735) (2,480)
Cash surrender value of life insurance 1,043 659
Other assets 898 618
Increase (decrease) in operating liabilities, net of effects of acquisition:    
Securities sold, but not yet purchased, at fair value 390 4,953
Accrued compensation (11,184) (5,049)
Accrued interest (17) (428)
Commissions and fees payable (4,472) 2,579
Deferred compensation liability (579) (268)
Accounts payable and accrued liabilities (4,085) (8,900)
Net cash used in operating activities (1,656) (1,527)
Cash flows from investing activities:    
Purchases of fixed assets (3,700) (4,789)
Increase in restricted assets 0 (180)
Net cash used in investing activities (3,700) (23,988)
Cash flows from financing activities:    
Issuance of Series A preferred stock 8,777 79,150
Issuance of common stock 2,032 1,103
Series A preferred stock dividends paid (14,734) (13,484)
Repurchase and retirement of common stock (8,904) (5,437)
Bank loan and revolver repayments (311) (236)
Principal payments on notes payable 3,442 14,160
Third party investment in subsidiary 0 40
Net cash (used in) provided by financing activities (16,582) 46,976
Net (decrease) increase in cash and cash equivalents (21,938) 21,461
Cash and cash equivalents, beginning of period 118,677 103,087
Cash and cash equivalents, end of period 96,739 124,548
Supplemental cash flow information:    
Interest paid 1,675 2,304
Taxes paid 476 1,434
Securities Service Network, Inc. (SSN)    
Cash flows from investing activities:    
Acquisition of net of cash acquired 0 (16,919)
Acquisitions    
Assets acquired 0 61,759
Liabilities assumed 0 (14,472)
Net assets acquired 0 47,287
Promissory note 0 (18,697)
Due to selling shareholders 0 (3,590)
Cash paid in acquisition 0 25,000
Cash acquired in acquisition 0 (8,081)
Net cash paid in acquisition 0 16,919
Dalton    
Cash flows from investing activities:    
Acquisition of net of cash acquired 0 (2,100)
Acquisitions    
Assets acquired 0 2,689
Liabilities assumed 0 (589)
Net cash paid in acquisition $ 0 $ 2,100