Financials

v3.19.3
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
ASSETS    
Cash and cash equivalents $ 251,033 $ 182,693
Securities owned, at fair value 4,601 10,923
Receivables from clearing brokers 27,835 24,068
Receivables from other broker-dealers 5,597 7,078
Notes receivable from financial advisors, net 7,459 5,809
Other receivables, net 67,419 68,942
Insurance trailing commissions receivable 67,290 64,300
Fixed assets, net 32,068 29,994
Right-of-use assets 31,815  
Restricted cash 771 6,588
Intangible assets, net 62,896 73,064
Goodwill 126,079 126,079
Contract acquisition costs, net 86,520 80,726
Cash surrender value of life insurance 13,934 11,406
Income taxes receivable 0 2,156
Other assets 32,807 47,078
Total assets 818,124 740,904
LIABILITIES:    
Securities sold, but not yet purchased, at fair value 35 2,575
Accrued compensation 36,871 39,264
Commissions and fees payable 106,004 105,306
Accounts payable and accrued liabilities 37,197 48,741
Deferred rent   2,956
Lease liabilities 34,798  
Deferred income taxes 13,945 14,068
Deferred compensation liability 24,602 20,622
Accrued interest 0 123
Notes payable, net of unamortized discount of $5,881 and $6,372 in 2019 and 2018, respectively and net of debt issuance costs of $8,660 and $7,086 in 2019 and 2018, respectively. 315,898 254,072
Total liabilities 569,350 487,727
Commitments and contingencies (Note 10)
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, 148,710,781 in 2019 and 146,535,796 in 2018 15 14
Additional paid-in capital 317,735 344,356
Accumulated deficit (68,971) (91,246)
Total shareholders’ equity of the Company 248,781 253,126
Noncontrolling interest (7) 51
Total shareholders' equity 248,774 253,177
Total liabilities and shareholders' equity $ 818,124 $ 740,904

Source

v3.19.3
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Revenues:        
Total revenues $ 374,532 $ 348,875 $ 1,073,567 $ 1,036,015
Expenses:        
Commissions and fees 260,072 249,672 749,522 735,388
Compensation and benefits 54,026 44,905 154,514 140,727
Non-cash compensation 1,536 1,380 4,474 4,442
Brokerage, communication and clearance fees 3,392 3,734 10,956 11,994
Rent and occupancy, net of sublease revenue 2,648 2,566 7,962 7,446
Professional services 4,810 4,531 14,514 14,860
Interest 6,218 3,206 16,840 7,226
Depreciation and amortization 5,246 5,845 17,057 17,416
Acquisition-related expenses 0 0 24 913
Amortization of retention and forgivable loans 139 97 391 280
Amortization of contract acquisition costs 2,988 2,488 8,639 7,059
Other 18,067 17,740 58,746 53,922
Total expenses 359,142 336,164 1,043,639 1,001,673
Income before item shown below 15,390 12,711 29,928 34,342
Change in fair value of contingent consideration (93) (54) (290) (165)
Income before income taxes 15,297 12,657 29,638 34,177
Income tax expense 4,020 3,207 7,421 9,953
Net income 11,277 9,450 22,217 24,224
Net (loss) income attributable to noncontrolling interest (79) 13 (58) 22
Net income attributable to the Company 11,356 9,437 22,275 24,202
Dividends declared on preferred stock (8,702) (8,507) (25,987) (25,523)
Net income (loss) available to common shareholders $ 2,654 $ 930 $ (3,712) $ (1,321)
Net income (loss) per common share available to common shareholders (basic) (in dollars per share) $ 0.02 $ 0.00 $ (0.03) $ (0.01)
Net income (loss) per common share available to common shareholders (diluted) (in dollars per share) $ 0.02 $ 0.00 $ (0.03) $ (0.01)
Weighted average common shares used in computation of per share data:        
Basic (in shares) 143,092,912 196,381,910 143,281,873 196,281,283
Diluted (in shares) 147,960,009 208,387,236 143,281,873 196,281,283
Commissions        
Revenues:        
Total revenues $ 180,395 $ 172,108 $ 527,076 $ 515,775
Advisory fees        
Revenues:        
Total revenues 132,763 124,550 372,664 361,571
Investment banking        
Revenues:        
Total revenues 18,692 9,982 40,060 38,201
Principal transactions        
Revenues:        
Total revenues (258) 45 1,271 445
Interest and dividends        
Revenues:        
Total revenues 1,474 1,434 4,018 3,301
Service fees        
Revenues:        
Total revenues 31,137 28,702 95,727 81,189
Other income        
Revenues:        
Total revenues $ 10,329 $ 12,054 $ 32,751 $ 35,533

Source

v3.19.3
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

Source