Financials

v3.19.2
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($)
$ in Thousands
Jun. 30, 2019
Dec. 31, 2018
ASSETS    
Cash and cash equivalents $ 239,780 $ 182,693
Securities owned, at fair value 4,820 10,923
Receivables from clearing brokers 35,049 24,068
Receivables from other broker-dealers 2,641 7,078
Notes receivable from financial advisors, net 6,055 5,809
Other receivables, net 70,480 68,942
Insurance trailing commissions receivable 65,370 64,300
Fixed assets, net 31,463 29,994
Right-of-use assets 33,396 0
Restricted cash 770 6,588
Intangible assets, net 65,825 73,064
Goodwill 126,079 126,079
Contract acquisition costs, net 85,754 80,726
Cash surrender value of life insurance 13,815 11,406
Income taxes receivable 0 2,156
Other assets 36,252 47,078
Total assets 817,549 740,904
LIABILITIES:    
Securities sold, but not yet purchased, at fair value 3,397 2,575
Accrued compensation 25,800 39,264
Commissions and fees payable 105,673 105,306
Accounts payable and accrued liabilities 43,696 48,741
Deferred rent 0 2,956
Lease liabilities 36,395 0
Deferred income taxes 14,018 14,068
Deferred compensation liability 23,672 20,622
Accrued interest 1,792 123
Notes payable, net of unamortized discount of $6,045 and $6,372 in 2019 and 2018, respectively and net of debt issuance costs of $8,633 and $7,086 in 2019 and 2018, respectively. 316,416 254,072
Total liabilities 570,859 487,727
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, 148,501,131 in 2019 and 146,535,796 in 2018 15 14
Additional paid-in capital 326,928 344,356
Accumulated deficit (80,327) (91,246)
Total shareholders’ equity of the Company 246,618 253,126
Noncontrolling interest 72 51
Total shareholders' equity 246,690 253,177
Total liabilities and shareholders' equity $ 817,549 $ 740,904

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v3.19.2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Revenues:        
Commissions $ 179,752 $ 180,381 $ 346,681 $ 343,667
Advisory fees 125,993 122,638 239,901 237,021
Investment banking 11,539 11,729 21,368 28,219
Principal transactions 601 233 1,529 400
Interest and dividends 1,328 1,080 2,544 1,867
Service fees 32,387 27,585 64,590 52,487
Other income 11,980 14,110 22,422 23,479
Total revenues 363,580 357,756 699,035 687,140
Expenses:        
Commissions and fees 255,148 254,405 489,450 485,716
Compensation and benefits 51,904 48,573 100,488 95,822
Non-cash compensation 1,444 1,568 2,938 3,062
Brokerage, communication and clearance fees 3,563 2,941 7,564 8,260
Rent and occupancy, net of sublease revenue 2,644 2,387 5,314 4,880
Professional services 5,269 5,311 9,704 10,329
Interest 5,573 2,154 10,622 4,020
Depreciation and amortization 5,906 5,762 11,811 11,571
Acquisition-related expenses 3 0 24 913
Amortization of retention and forgivable loans 109 107 252 183
Amortization of contract acquisition costs 2,874 2,361 5,651 4,571
Other 19,545 18,253 40,679 36,182
Total expenses 353,982 343,822 684,497 665,509
Income before item shown below 9,598 13,934 14,538 21,631
Change in fair value of contingent consideration (85) (50) (197) (111)
Income before income taxes 9,513 13,884 14,341 21,520
Income tax expense 2,005 4,574 3,401 6,746
Net income 7,508 9,310 10,940 14,774
Net income attributable to noncontrolling interest 20 8 21 9
Net income attributable to the Company 7,488 9,302 10,919 14,765
Dividends declared on preferred stock (8,695) (8,508) (17,285) (17,016)
Net (loss) income available to common shareholders $ (1,207) $ 794 $ (6,366) $ (2,251)
Net loss per common share available to common shareholders (basic) (in dollars per share) $ (0.01) $ 0.00 $ (0.04) $ (0.01)
Net loss per common share available to common shareholders (diluted) (in dollars per share) $ (0.01) $ 0.00 $ (0.04) $ (0.01)
Weighted average common shares used in computation of per share data:        
Basic (in shares) 143,444,079 196,557,837 143,377,919 196,230,136
Diluted (in shares) 143,444,079 209,855,936 143,377,919 196,230,136

Source

v3.19.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Cash flows from operating activities:    
Net income $ 10,940 $ 14,774
Adjustments to reconcile net income to    
Change in fair value of contingent consideration 197 111
Adjustment to deferred rent 0 621
Amortization of right-of-use assets 3,848 0
Amortization of intangible assets 7,241 7,670
Amortization of debt discount 533 226
Amortization of debt issue cost 190 215
Amortization of retention and forgivable loans 252 183
Amortization of contract acquisition costs 5,651 4,571
Depreciation and other amortization 4,507 3,901
Deferred income taxes (50) (45)
Non-cash compensation expense 2,938 3,062
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 2 18
(Increase) decrease in operating assets    
Securities owned, at fair value 6,103 (2,667)
Receivables from clearing brokers (10,981) 3,530
Receivables from other broker-dealers 4,437 302
Other receivables, net (1,538) (9,826)
Insurance trailing commissions receivable (1,070) 0
Contract acquisition costs, net (10,679) (20,203)
Notes receivable from financial advisors, net (498) 727
Cash surrender value of life insurance (2,409) (196)
Income taxes receivable 2,156 0
Other assets 10,826 (2,894)
Increase (decrease) in operating liabilities    
Securities sold, but not yet purchased, at fair value 822 4,689
Accrued compensation (13,464) (5,815)
Accrued interest 1,669 38
Commissions and fees payable 367 8,578
Deferred compensation liability 3,050 1,838
Lease liabilities (3,810) 0
Accounts payable and accrued liabilities (5,063) 14,817
Net cash provided by operating activities 16,167 26,003
Cash flows from investing activities:    
Purchases of fixed assets (6,153) (6,605)
Net cash used in investing activities (6,153) (6,605)
Cash flows from financing activities:    
Issuance of Series A preferred stock 9,449 (89)
Issuance of common stock 1,404 2,613
Issuance of senior notes 55,557 45,936
Series A preferred stock dividends paid (17,285) (17,016)
Common stock dividends paid (3,587) (3,929)
Repurchase and retirement of common stock (10,347) (3,428)
Borrowings on term loan 7,000 0
Bank loan and revolver repayments (788) (1,346)
Principal payments on notes payable (148) (3,566)
Net cash provided by financing activities 41,255 19,175
Net increase in cash and cash equivalents 51,269 38,573
Cash and cash equivalents including restricted cash, beginning of period 189,281 172,863
Cash and cash equivalents 239,780 204,847
Restricted cash 770 6,589
Cash and cash equivalents including restricted cash, end of period 240,550 211,436
Supplemental cash flow information:    
Interest paid 8,230 3,540
Taxes paid $ 351 $ 275

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