Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

v3.6.0.2
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Cash flows from operating activities:      
Net (loss) income $ (22,311) $ (11,213) $ 33,352
Adjustments to reconcile net (loss) income to net cash provided by operating activities:      
Change in fair value of contingent consideration 216 (55) (12)
Adjustment to deferred rent 213 37 (357)
Amortization of intangible assets 20,703 20,650 14,056
Depreciation and other amortization 7,631 6,427 4,341
Loss on extinguishment of debt 0 252 548
Amortization of debt discount 620 666 501
Amortization of debt issue cost 253 376 393
Amortization of retention and forgivable loans 5,472 9,238 11,041
Deferred income taxes 9,096 (400) (25,521)
Benefit attributable to reduction of goodwill 0 78 68
Non-cash interest expense on forgivable loan 43 21 98
Gain on forgiveness of accrued interest under forgivable loans (408) (619) (839)
Gain on forgiveness of principal of note payable under forgivable loans (2,143) (3,928) (3,929)
Non-cash compensation expense 5,311 8,759 10,541
Loss on write-off of receivable from subtenant 0 855 0
Loss on write-off of furniture, fixtures and leasehold improvements, net 1 9 9
(Increase) decrease in operating assets, net of effects of acquisitions:      
Securities owned, at fair value 536 1,989 (522)
Receivables from clearing brokers 2,974 (5,076) (5,907)
Receivables from other broker-dealers 1,297 (362) 338
Other receivables, net (6,070) 19 (7,014)
Notes receivable from financial advisors, net (11,116) (9,828) (5,442)
Cash surrender value of life insurance (963) 1,172 1,951
Other assets 1,191 (5,381) (39)
Increase (decrease) in operating liabilities, net of effects of acquisitions:      
Securities sold, but not yet purchased, at fair value 144 8 147
Accrued compensation (2,816) 5,632 (803)
Accrued interest (177) 292 102
Commissions and fees payable 599 2,139 8,272
Deferred compensation liability 36 (429) (2,003)
Accounts payable and accrued liabilities 3,914 (2,009) (6,515)
Net cash provided by operating activities 14,246 19,319 26,855
Cash flows from investing activities:      
Acquisition of SSN, net of cash received 0 (16,919) 0
Acquisition of Highland, net of cash received 0 0 (3,353)
Acquisition of KMS, net of cash received 0 0 (4,292)
Other business acquisitions (4,097) (2,603) (1,621)
Purchases of fixed assets (7,132) (8,298) (7,447)
(Increase) decrease in restricted assets 0 (391) 100
Net cash used in investing activities (11,229) (28,211) (16,613)
Cash flows from financing activities:      
Issuance of Series A preferred stock 27,580 84,380 108,617
Issuance of common stock 3,061 2,016 3,282
Series A preferred stock dividends paid (30,438) (28,108) (17,244)
Repurchases of common stock (14,749) (16,355) (9,535)
Principal repayments on notes payable including, in 2014, repayment of $21,834 of Highland's assumed debt (7,516) (17,639) (42,369)
Principal borrowings (repayments) under a revolving credit facility, net (114) 495 (275)
Term loan repayments (628) (387) 0
Third party investment in subsidiary 40 80 40
Net cash (used in) provided by financing activities (22,764) 24,482 42,516
Net (decrease) increase in cash and cash equivalents (19,747) 15,590 52,758
Cash and cash equivalents, beginning of period 118,677 103,087 50,329
Cash and cash equivalents, end of period 98,930 118,677 103,087
Supplemental cash flow information:      
Interest paid 3,523 3,807 5,920
Taxes paid 1,036 2,313 2,554
Payments to acquire business 0 16,919 0
Cancellation of promissory notes as consideration for exercise price of warrants 17,976 0 0
Acquisition of Sunset      
Cash flows from investing activities:      
Acquisition of SSN, net of cash received 0 0 (1,621)
Assets acquired 0 0 4,380
Liabilities assumed 0 0 0
Net assets acquired 0 0 4,380
Payable to seller 0 0 (2,759)
Payments to acquire business 0 0 1,621
Acquisition of Highland      
Cash flows from investing activities:      
Acquisition of SSN, net of cash received 0 0 (3,353)
Assets acquired 0 0 65,882
Liabilities assumed 0 0 (54,316)
Net assets acquired 0 0 11,566
Stock issued in acquisition 0 0 (7,953)
Cash paid in acquisition 0 0 3,613
Cash acquired in acquisition 0 0 (260)
Payments to acquire business 0 0 3,353
Acquisition of KMS      
Cash flows from investing activities:      
Acquisition of SSN, net of cash received 0 0 (4,292)
Assets acquired 0 0 39,844
Liabilities assumed 0 0 (15,284)
Net assets acquired 0 0 24,560
Stock issued in acquisition 0 0 (6,052)
Cash paid in acquisition 0 0 11,000
Promissory note 0 0 (7,508)
Cash acquired in acquisition 0 0 (6,708)
Payments to acquire business 0 0 4,292
SSN      
Cash flows from operating activities:      
Net (loss) income   1,629  
Cash flows from investing activities:      
Acquisition of SSN, net of cash received 0 (16,919) 0
Assets acquired 0 61,759 0
Liabilities assumed 0 (14,472) 0
Net assets acquired 0 47,287 0
Payable to seller 0 (3,590) 0
Cash paid in acquisition 0 25,000 0
Promissory note 0 (18,697) 0
Cash acquired in acquisition 0 (8,081) 0
Payments to acquire business 0 16,919 0
Dalton      
Cash flows from investing activities:      
Acquisition of SSN, net of cash received 0 (2,100) 0
Assets acquired 0 2,689 0
Payable to seller 0 (589) 0
Payments to acquire business 0 2,100 0
Select      
Cash flows from investing activities:      
Acquisition of SSN, net of cash received 0 (503) 0
Assets acquired 0 2,019 0
Payable to seller 0 (1,516) 0
Payments to acquire business 0 503 0
Wall Street Financial Group      
Cash flows from investing activities:      
Acquisition of SSN, net of cash received (1,192) 0 0
Assets acquired 3,468 0 0
Liabilities assumed (2,276) 0 0
Payments to acquire business 1,192 0 0
Foothill Securities, Inc.      
Cash flows from investing activities:      
Acquisition of SSN, net of cash received (2,905) 0 0
Assets acquired 5,571 0 0
Liabilities assumed (2,666) 0 0
Payments to acquire business $ 2,905 $ 0 $ 0