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
 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Cash flows from operating activities:    
Net income $ 22,217 $ 24,224
Adjustments to reconcile net income to    
Change in fair value of contingent consideration 290 165
Adjustment to deferred rent 0 819
Amortization of right-of-use assets 5,717  
Amortization of intangible assets 10,173 11,552
Amortization of debt discount 491 428
Amortization of debt issue cost 636 401
Amortization of retention and forgivable loans 391 280
Amortization of contract acquisition costs 8,639 7,059
Depreciation and other amortization 6,884 5,864
Deferred income taxes (123) 6,056
Non-cash compensation expense 4,474 4,442
Gain on forgiveness of accrued interest under forgivable loans 0 (79)
Gain on forgiveness of principal of note payable under forgivable loans 0 (2,143)
Loss on write-off of furniture, fixtures and leasehold improvements, net 4 18
(Increase) decrease in operating assets    
Securities owned, at fair value 6,322 (1,570)
Receivables from clearing brokers (3,767) 21,893
Receivables from other broker-dealers 1,481 1,350
Other receivables, net 1,523 (11,151)
Insurance trailing commissions receivable (2,990) 0
Contract acquisition costs, net (14,433) (23,522)
Notes receivable from financial advisors, net (2,041) 3
Cash surrender value of life insurance (2,528) (767)
Income taxes receivable 2,156 0
Other assets 14,271 (8,786)
Increase (decrease) in operating liabilities    
Securities sold, but not yet purchased, at fair value (2,540) (165)
Accrued compensation (2,393) (1,220)
Accrued interest (123) (153)
Commissions and fees payable 698 12,631
Deferred compensation liability 3,980 3,802
Lease liabilities (5,787)  
Accounts payable and accrued liabilities (11,655) 9,932
Net cash provided by operating activities 41,967 61,363
Cash flows from investing activities:    
Purchases of fixed assets (9,044) (10,503)
Purchase of intangible assets (5) (6)
Acquisition of certain assets of Kestler Financial Group 0 (1,683)
Net cash used in investing activities (9,049) (12,192)
Cash flows from financing activities:    
Issuance of Series A preferred stock 9,431 (180)
Issuance of common stock 1,715 4,001
Issuance of senior notes 55,291 106,081
Series A preferred stock dividends paid (25,987) (25,523)
Common stock dividends paid (5,380) (6,377)
Repurchase and retirement of common stock (10,873) (8,746)
Borrowings on term loan 7,000 0
Bank loan and revolver repayments (1,361) (6,658)
Principal payments on notes payable (231) (15,209)
Net cash provided by financing activities 29,605 47,389
Net increase in cash and cash equivalents 62,523 96,560
Cash and cash equivalents including restricted cash, beginning of period 189,281 172,863
Cash and equivalents at end of period:    
Cash and cash equivalents 251,033 262,834
Restricted cash 771 6,589
Cash and cash equivalents including restricted cash, end of period 251,804 269,423
Supplemental cash flow information:    
Interest paid 15,836 6,551
Taxes paid 1,940 2,786
Acquisition of certain assets of Kestler Financial Group:    
Assets acquired 0 7,917
Liabilities assumed 0 (784)
Net assets acquired 0 7,133
Promissory note 0 (5,450)
Net cash paid in acquisition $ 0 $ 1,683