Financials

v3.20.1
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
ASSETS    
Cash and cash equivalents $ 248,772 $ 182,693
Securities owned, at fair value 4,449 10,923
Receivables from clearing brokers 23,086 24,068
Receivables from other broker-dealers 4,051 7,078
Notes receivable from financial advisors, net 8,781 5,809
Other receivables, net 71,810 68,942
Insurance trailing commissions receivable 73,782 64,300
Fixed assets, net 33,750  
Fixed assets, net   29,994
Right-of-use assets 30,571  
Restricted cash 770 6,588
Intangible assets, net 59,998 73,064
Goodwill 126,079 126,079
Contract acquisition costs, net 87,942 80,726
Cash surrender value of life insurance 15,230 11,406
Income taxes receivable 0 2,156
Other assets 40,865 47,078
Total assets 829,936 740,904
LIABILITIES AND SHAREHOLDERS’ EQUITY    
Securities sold, but not yet purchased, at fair value 420 2,575
Accrued compensation 40,350 39,264
Commissions and fees payable 109,719 105,306
Accounts payable and accrued liabilities 50,038 48,741
Deferred rent   2,956
Lease liability 33,510  
Deferred income taxes 12,269 14,068
Deferred compensation liability 26,722 20,622
Accrued interest 0 123
Notes payable, net of unamortized discount of $5,718 and $6,372 in 2019 and 2018, respectively, and net of debt issuance costs of $8,642 and $7,086 in 2019 and 2018 respectively. 315,443 254,072
Total liabilities 588,471 487,727
Commitments and contingencies (Note 15)
Shareholders’ equity:    
Preferred stock, $.0001 par value; authorized 50,000,000 shares: 8% Series A cumulative redeemable preferred stock; designated 23,844,916 shares in 2019 and 2018; shares issued and outstanding 17,401,282 in 2019 and 17,012,075 in 2018 (liquidation preference $435,032 and $425,302 in 2019 and 2018, respectively) 2 2
Common stock, $.0001 par value; authorized 1,000,000,000 shares in 2019 and 2018; shares issued and outstanding, 149,311,259 in 2019 and 146,535,796 in 2018 15 14
Additional paid-in capital 309,918 344,356
Accumulated deficit (68,479) (91,246)
Total shareholders’ equity of the Company 241,456 253,126
Noncontrolling interest 9 51
Total shareholders' equity 241,465 253,177
Total liabilities and shareholders' equity $ 829,936 $ 740,904

Source

v3.20.1
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Revenues:      
Total revenues $ 1,469,302 $ 1,391,136 $ 1,268,152
Expenses:      
Commissions and fees 1,025,556 976,596 928,430
Compensation and benefits 210,811 194,045 171,344
Non-cash compensation 6,106 5,882 5,539
Brokerage, communication and clearance fees 14,057 16,088 18,124
Rent and occupancy, net of sublease revenue 10,603 9,977 9,356
Professional services 19,403 21,927 19,588
Interest 23,119 10,796 2,710
Depreciation and amortization 22,294 24,039 28,835
Acquisition-related expenses 5,887 1,010 3,469
Amortization of retention and forgivable loans 549 417 7,396
Amortization of contract acquisition costs 11,759 9,671 0
Other 88,487 73,285 72,200
Total expenses 1,438,631 1,343,733 1,266,991
Income before item shown below 30,671 47,403 1,161
Change in fair value of contingent consideration (664) (238) 19
Income before income taxes 30,007 47,165 1,180
Income tax expense (benefit) 7,282 13,379 (6,502)
Net income 22,725 33,786 7,682
Net income (loss) attributable to noncontrolling interest (42) 28 (15)
Net income attributable to the Company 22,767 33,758 7,697
Dividends declared on preferred stock (34,689) (34,031) (32,482)
Net loss available to common shareholders $ (11,922) $ (273) $ (24,785)
Net loss per share available to common shareholders (basic) (in USD per share) $ (0.08) $ 0.00 $ (0.13)
Net loss per share available to common shareholders (diluted) (in USD per share) $ (0.08) $ 0.00 $ (0.13)
Weighted average common shares used in computation of per share data:      
Basic (in shares) 143,372,266 194,562,916 193,064,550
Diluted (in shares) 143,372,266 194,562,916 193,064,550
Commissions      
Revenues:      
Total revenues $ 724,605 $ 696,331 $ 536,028
Advisory fees      
Revenues:      
Total revenues 510,609 474,423 560,930
Investment banking      
Revenues:      
Total revenues 54,043 56,256 46,453
Principal transactions      
Revenues:      
Total revenues 1,452 (328) 857
Interest and dividends      
Revenues:      
Total revenues 5,289 4,971 2,550
Service fees      
Revenues:      
Total revenues 132,029 119,430 85,330
Other income      
Revenues:      
Total revenues $ 41,275 $ 40,053 $ 36,004

Source

v3.20.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Cash flows from operating activities:      
Net income $ 22,725 $ 33,786 $ 7,682
Adjustments to reconcile net income to      
Change in fair value of contingent consideration 664 238 (19)
Adjustment to deferred rent   805 387
Amortization of right-of-use assets 7,603    
Amortization of intangible assets 13,071 15,578 21,327
Depreciation and other amortization 9,223 8,461 7,508
Amortization of debt discount 654 432 449
Amortization of debt issue cost 882 591 41
Amortization of retention and forgivable loans 549 417 7,396
Amortization of contract acquisition costs 11,759 9,671 0
Deferred income taxes (1,799) 8,130 (7,662)
Benefit attributable to reduction of goodwill 0 541 0
Non-cash interest expense on forgivable loan 0 0 24
Gain on forgiveness of accrued interest under forgivable loans 0 (79) (295)
Gain on forgiveness of principal of note payable under forgivable loans 0 (2,143) (2,143)
Non-cash compensation expense 6,106 5,882 5,539
Loss on write-off of furniture, fixtures and leasehold improvements, net 22 26 21
(Increase) decrease in operating assets:      
Securities owned, at fair value 6,474 (7,042) (338)
Receivables from clearing brokers 982 24,475 (7,051)
Receivables from other broker-dealers 3,027 (4,256) (1,969)
Other receivables, net (2,868) (13,886) (6,073)
Insurance Trailing Commissions Receivable (9,482) 0 0
Contract acquisition costs, net (18,975) (29,057) 0
Notes receivable from financial advisors, net (3,521) 577 (21,563)
Cash surrender value of life insurance (3,824) 1,305 (2,501)
Income taxes receivable 2,156 (2,156) 0
Other assets 6,213 (15,366) 219
Increase (decrease) in operating liabilities:      
Securities sold, but not yet purchased, at fair value (2,155) 2,344 (151)
Accrued compensation 1,086 5,959 7,044
Accrued interest (123) (30) 222
Commissions and fees payable 4,413 8,690 6,627
Deferred compensation liability 6,100 2,461 914
Lease liability (7,757)    
Accounts payable and accrued liabilities 812 7,018 580
Net cash provided by operating activities 54,017 63,372 16,215
Cash flows from investing activities:      
Acquisition of Kestler Financial Group, net of cash received 0 (2,850) 0
Acquisition of Four Seasons Financial Group, net of cash received 0 (450) 0
Other business acquisitions 0 0 (179)
Purchases of fixed assets (13,044) (14,502) (9,896)
Purchase of intangible assets (5) (6) 0
Net proceeds from sale of equipment/disposal 1 0 0
Net cash used in investing activities (13,048) (17,808) (10,075)
Cash flows from financing activities:      
Issuance of Series A preferred stock 9,426 (273) 28,095
Issuance of common stock 2,778 4,266 9,066
Series A preferred stock dividends paid (34,689) (34,031) (32,482)
Common stock dividends paid (7,179) (8,794) (3,880)
Repurchases and retirement of common stock (10,880) (69,746) (5,293)
Repurchase of stock option award for cash 0 (3,000) (850)
Additional issuance costs related to SSN notes 0 0 (40)
Issuance of senior notes 55,062 104,375 73,197
Borrowings on term loan 7,000 0 8,000
Principal repayments on notes payable (309) (15,253) (7,039)
Bank loan and revolver repayments (1,917) (6,690) (1,992)
Net cash provided (used in) by financing activities 19,292 (29,146) 66,782
Net increase in cash and cash equivalents 60,261 16,418 72,922
Cash and cash equivalents including restricted cash, beginning of period 189,281 172,863 99,941
Cash and cash equivalents including restricted cash, end of period 249,542 189,281 172,863
Cash and cash equivalents including restricted cash, end of period 249,542 189,281 172,863
Supplemental cash flow information:      
Interest paid 21,706 9,870 1,974
Taxes paid 4,784 6,956 1,487
Net cash paid in acquisition 0 2,850 0
Non-cash financing activities:      
Issuance of 7.25% notes for repurchase of common stock 0 76,350 0
Foothill Securities, Inc.      
Cash flows from investing activities:      
Acquisition of Kestler Financial Group, net of cash received 0 0 179
Supplemental cash flow information:      
Liabilities assumed 0 0 (179)
Net cash paid in acquisition 0 0 (179)
Kestler Financial Group      
Cash flows from investing activities:      
Acquisition of Kestler Financial Group, net of cash received 0 (2,850) 0
Supplemental cash flow information:      
Assets acquired 0 9,093 0
Liabilities assumed 0 (793) 0
Net assets acquired 0 8,300 0
Promissory note 0 (5,450) 0
Net cash paid in acquisition 0 2,850 0
Four Seasons Financial Group      
Cash flows from investing activities:      
Acquisition of Kestler Financial Group, net of cash received 0 (450) 0
Supplemental cash flow information:      
Assets acquired 0 2,345 0
Liabilities assumed 0 (1,523) 0
Net assets acquired 0 822 0
Promissory note 0 (372) 0
Net cash paid in acquisition $ 0 $ 450 $ 0

Source