Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Cash flows from operating activities:
Net income (loss)	$ 33,352us-gaap_ProfitLoss	$ (522)us-gaap_ProfitLoss	$ (16,354)us-gaap_ProfitLoss
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Change in fair value of contingent consideration	(12)	121	(7,111)
Adjustment to deferred rent	(357)us-gaap_OtherNoncashIncomeExpense	(106)us-gaap_OtherNoncashIncomeExpense	(356)us-gaap_OtherNoncashIncomeExpense
Amortization of intangible assets	14,056us-gaap_AmortizationOfIntangibleAssets	11,594us-gaap_AmortizationOfIntangibleAssets	11,683us-gaap_AmortizationOfIntangibleAssets
Write-off of intangible asset	0	143	0
Depreciation and other amortization	4,341	3,676	4,378
Loss on extinguishment of debt	548	4,547	0
Amortization of debt discount	501	1,219	1,993
Amortization of debt issue cost	393	435	478
Amortization of retention and forgivable loans	11,041	11,544	11,664
Deferred income taxes	(25,521)us-gaap_DeferredIncomeTaxExpenseBenefit	954us-gaap_DeferredIncomeTaxExpenseBenefit	877us-gaap_DeferredIncomeTaxExpenseBenefit
Benefit attributable to reduction of goodwill	68	77	71
Non-cash interest expense on forgivable loan	98	132	1,258
Gain on forgiveness of accrued interest under forgivable loans	(839)us-gaap_OtherNoncashIncome	(1,067)us-gaap_OtherNoncashIncome	(1,365)us-gaap_OtherNoncashIncome
Gain on forgiveness of principal of note payable under forgivable loans	(3,929)	(3,929)	(3,929)
Non-cash compensation expense	10,541us-gaap_ShareBasedCompensation	6,766us-gaap_ShareBasedCompensation	4,744us-gaap_ShareBasedCompensation
Loss on write-off of furniture, fixtures and leasehold improvements, net	9	430	7
(Increase) decrease in operating assets, net of effects of acquisitions:
Securities owned, at fair value	(522)	(2,711)	(64)
Receivables from clearing brokers	(5,907)	(14,418)	1,426
Receivables from other broker-dealers	338	23	(1,636)
Other receivables, net	(7,014)	(1,153)	(1,661)
Notes receivable from financial advisors, net	(5,442)	(4,147)	(6,504)
Cash surrender value of life insurance	1,951	(1,163)	954
Other assets	(39)	(5,367)	(2,081)
Increase (decrease) in operating liabilities, net of effects of acquisitions:
Securities sold, but not yet purchased, at fair value	147	(209)	214
Accrued compensation	(803)	8,081	1,518
Accrued interest	102	(2,397)	1,680
Commissions and fees payable	8,272	1,230	5,679
Deferred compensation liability	(2,003)	1,101	(746)
Accounts payable and accrued liabilities	(6,515)	5,990	831
Net cash provided by operating activities	26,855	20,874	7,648
Cash flows from investing activities:
Acquisition of Highland, net of cash received	(3,353)	0	0
Acquisition of KMS, net of cash received	(4,292)	0	0
Other business acquisitions	1,621	0	552
Purchases of fixed assets	(7,447)	(6,861)	(5,477)
Sale of fixed assets	0	88	0
Change in restricted assets	100	(250)	0
Other	0	0	99
Net cash used in investing activities	(16,613)	(7,023)	(5,930)
Cash flows from financing activities:
Issuance of Series A preferred stock	108,617	147,929	0
Issuance of common stock	3,282	1,256	795
Series A preferred stock dividends paid	(17,244)	(6,911)	0
Repurchases of common stock	(9,535)	(6,446)	(1,407)
Issuance of notes payable and warrants	0us-gaap_ProceedsFromNotesPayable	1,709us-gaap_ProceedsFromNotesPayable	0us-gaap_ProceedsFromNotesPayable
Principal (repayments) borrowings on notes payable including, in 2014, repayment of $21,834 of Highland's assumed debt	(42,369)us-gaap_RepaymentsOfNotesPayable	(111,113)us-gaap_RepaymentsOfNotesPayable	2,950us-gaap_RepaymentsOfNotesPayable
Principal repayments under revolving credit facility, net	(275)	(25,500)	(219)
Third party investment in subsidiary	40	120	0
Net cash provided by financing activities	42,516	1,044	2,119
Net increase in cash and cash equivalents	52,758	14,895	3,837
Cash and cash equivalents, beginning of period	50,329	35,434	31,597
Cash and cash equivalents, end of period	103,087	50,329	35,434
Supplemental cash flow information:
Interest paid	5,920us-gaap_InterestPaid	16,034us-gaap_InterestPaid	22,968us-gaap_InterestPaid
Taxes paid	2,554us-gaap_IncomeTaxesPaid	544us-gaap_IncomeTaxesPaid	488us-gaap_IncomeTaxesPaid
Acquisition of business [Member]
Statement [Line Items]
Assets acquired	4,380	0	1,364
Liabilities assumed	0	0	0
Net assets acquired	4,380	0	1,364
Fair value of contingent earnout	0	0	812
Payable to seller	(2,759)	0	0
Net cash paid in acquisition	1,621	0	552
Acquisition of Securities America [Member]
Statement [Line Items]
Assets acquired	65,882	0	0
Liabilities assumed	54,316	0	0
Net assets acquired	11,566	0	0
Stock issued in acquisition	(7,953)	0	0
Cash paid in acquisition	3,613	0	0
Cash acquired in acquisition	260	0	0
Net cash paid in acquisition	3,353	0	0
Acquisition of Business [Member]
Statement [Line Items]
Assets acquired	39,844	0	0
Liabilities assumed	15,284	0	0
Net assets acquired	24,560	0	0
Stock issued in acquisition	(6,052)	0	0
Cash paid in acquisition	11,000	0	0
Promissory note	7,508	0	0
Cash acquired in acquisition	6,708	0	0
Net cash paid in acquisition	$ 4,292	$ 0	$ 0