Financials

v3.19.1
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($)
$ in Thousands
Mar. 31, 2019
Dec. 31, 2018
ASSETS    
Cash and cash equivalents $ 167,847 $ 182,693
Securities owned, at fair value 7,967 10,923
Receivables from clearing brokers 42,059 24,068
Receivables from other broker-dealers 4,143 7,078
Notes receivable from financial advisors, net 5,343 5,809
Other receivables, net 136,144 133,242
Fixed assets, net 30,815 29,994
Right-of-use assets 34,715 0
Restricted cash 770 6,588
Intangible assets, net 69,442 73,064
Goodwill 126,079 126,079
Contract acquisition costs, net 83,784 80,726
Cash surrender value of life insurance 13,059 11,406
Income taxes receivable 473 2,156
Other assets 38,643 47,078
Total assets 761,283 740,904
LIABILITIES:    
Securities sold, but not yet purchased, at fair value 5,097 2,575
Accrued compensation 18,743 39,264
Commissions and fees payable 105,121 105,306
Accounts payable and accrued liabilities 42,166 48,741
Deferred rent 0 2,956
Lease liabilities 37,713 0
Deferred income taxes 13,763 14,068
Deferred compensation liability 21,914 20,622
Accrued interest 1,507 123
Notes payable, net of unamortized discount of $6,209 and $6,372 in 2019 and 2018, respectively and net of debt issuance costs of $6,801 and $7,086 in 2019 and 2018, respectively. 261,237 254,072
Total liabilities 507,261 487,727
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 17,299,305 in 2019 and 17,012,075 in 2018 (liquidation preference $432,483 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, 148,746,413 in 2019 and 146,535,796 in 2018 15 14
Additional paid-in capital 341,768 344,356
Accumulated deficit (87,815) (91,246)
Total shareholders’ equity of the Company 253,970 253,126
Noncontrolling interest 52 51
Total shareholders' equity 254,022 253,177
Total liabilities and shareholders' equity $ 761,283 $ 740,904

Source

v3.19.1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Revenues:    
Commissions $ 166,929 $ 163,286
Advisory fees 113,908 114,383
Investment banking 9,829 16,490
Principal transactions 928 167
Interest and dividends 1,216 787
Service fees 32,203 24,902
Other income 10,442 9,369
Total revenues 335,455 329,384
Expenses:    
Commissions and fees 234,302 231,311
Compensation and benefits 48,584 47,249
Non-cash compensation 1,494 1,494
Brokerage, communication and clearance fees 4,001 5,319
Rent and occupancy, net of sublease revenue 2,670 2,493
Professional services 4,435 5,018
Interest 5,049 1,866
Depreciation and amortization 5,905 5,809
Acquisition-related expenses 21 913
Amortization of retention and forgivable loans 143 76
Amortization of contract acquisition costs 2,777 2,210
Other 21,134 17,929
Total expenses 330,515 321,687
Income before item shown below 4,940 7,697
Change in fair value of contingent consideration (112) (61)
Income before income taxes 4,828 7,636
Income tax expense 1,396 2,172
Net income 3,432 5,464
Net income attributable to noncontrolling interest 1 1
Net income attributable to the Company 3,431 5,463
Dividends declared on preferred stock (8,590) (8,508)
Net loss available to common shareholders $ (5,159) $ (3,045)
Net loss per common share available to common shareholders (basic) (in dollars per share) $ (0.04) $ (0.02)
Net loss per common share available to common shareholders (diluted) (in dollars per share) $ (0.04) $ (0.02)
Weighted average common shares used in computation of per share data:    
Basic (in shares) 143,311,024 195,898,794
Diluted (in shares) 143,311,024 195,898,794

Source

v3.19.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Cash flows from operating activities:    
Net income $ 3,432 $ 5,464
Adjustments to reconcile net income to    
Change in fair value of contingent consideration 112 61
Adjustment to deferred rent 0 420
Amortization of right-of-use assets 1,993 0
Amortization of intangible assets 3,622 3,835
Amortization of debt discount 163 112
Amortization of debt issue cost 190 99
Amortization of retention and forgivable loans 143 76
Amortization of contract acquisition costs 2,777 2,210
Depreciation and other amortization 2,283 1,974
Deferred income taxes (305) (71)
Non-cash interest expense on forgivable loan 0 40
Non-cash compensation expense 1,494 1,494
Loss on write-off of furniture, fixtures and leasehold improvements, net 2 0
(Increase) decrease in operating assets    
Securities owned, at fair value 2,956 (223)
Receivables from clearing brokers (17,991) (7,299)
Receivables from other broker-dealers 2,935 559
Other receivables, net (2,902) (2,798)
Contract acquisition costs, net (5,835) (14,104)
Notes receivable from financial advisors, net 323 205
Cash surrender value of life insurance (1,653) 20
Income taxes receivable 1,683 0
Other assets 8,435 (5,229)
Increase (decrease) in operating liabilities    
Securities sold, but not yet purchased, at fair value 2,522 4
Accrued compensation (20,521) (14,405)
Accrued interest 1,384 (11)
Commissions and fees payable (185) (679)
Deferred compensation liability 1,292 179
Lease liabilities (1,956) 0
Accounts payable and accrued liabilities (6,539) 12,903
Net cash used in operating activities (20,146) (15,164)
Cash flows from investing activities:    
Purchases of fixed assets (3,249) (2,239)
Net cash used in investing activities (3,249) (2,239)
Cash flows from financing activities:    
Issuance of Series A preferred stock 6,915 (37)
Issuance of common stock 439 1,014
Issuance of senior notes 96 4,385
Series A preferred stock dividends paid (8,590) (8,508)
Common stock dividends paid (1,794) (1,960)
Repurchase and retirement of common stock (1,052) (1,729)
Borrowings on term loan 7,000 0
Bank loan and revolver repayments (209) (669)
Principal payments on notes payable (74) (1,779)
Net cash provided by (used in) financing activities 2,731 (9,283)
Net decrease in cash and cash equivalents (20,664) (26,686)
Cash and cash equivalents including restricted cash, beginning of period 189,281 172,863
Cash and cash equivalents 167,847 145,417
Restricted cash 770 760
Cash and cash equivalents including restricted cash, end of period 168,617 146,177
Supplemental cash flow information:    
Interest paid 3,312 1,626
Taxes paid $ 37 $ 27

Source