Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Cash flows from operating activities:    
Net income (loss) $ 1,048 $ (22,932)
Adjustments to reconcile net loss to net cash provided by operating activities:    
Change in fair value of contingent consideration (86) 178
Adjustment to deferred rent 319 (71)
Amortization of intangible assets 16,142 15,501
Amortization of debt discount 337 491
Amortization of debt issue cost 0 252
Amortization of retention and forgivable loans 5,070 4,381
Depreciation and other amortization 5,688 5,629
Deferred income taxes (161) 5,729
Benefit attributable to reduction of goodwill 0 59
Non-cash interest expense on forgivable loan 266 308
Non-cash compensation expense 4,148 3,996
Loss on write-off of furniture, fixtures and leasehold improvements, net 1 1
(Increase) decrease in operating assets    
Securities owned, at fair value (604) 433
Receivables from clearing brokers (15,230) 9,448
Receivables from other broker-dealers (1,074) 589
Other receivables, net 5,843 (3,125)
Notes receivable from financial advisors, net (6,443) (6,594)
Cash surrender value of life insurance (1,990) (369)
Other assets (5,019) 174
Increase (decrease) in operating liabilities    
Securities sold, but not yet purchased, at fair value (184) 438
Accrued compensation 2,308 (10,060)
Accrued interest (65) (24)
Commissions and fees payable 1,790 (2,859)
Deferred compensation liability 1,239 97
Accounts payable and accrued liabilities 3,105 3,931
Net cash provided by operating activities 16,448 5,601
Cash flows from investing activities:    
Acquisition of certain assets of Wall Street 0 (1,192)
Acquisition of certain assets of Foothill Securities (180) 0
Purchases of fixed assets (7,258) (4,998)
Decrease in restricted assets 251 0
Net cash used in investing activities (7,187) (6,190)
Cash flows from financing activities:    
Issuance of Series A preferred stock 18,032 27,621
Issuance of common stock 4,376 2,648
Series A preferred stock dividends paid (24,026) (22,514)
Common stock dividends paid (1,962) 0
Repurchase of stock option award for cash (850) 0
Repurchase and retirement of common stock (4,450) (13,554)
Borrowings on term loan 8,000 0
Bank loan and revolver repayments (1,305) (524)
Principal payments on notes payable (5,267) (5,776)
Net cash used in financing activities (7,452) (12,099)
Net increase (decrease) in cash and cash equivalents 1,809 (12,688)
Cash and cash equivalents, beginning of period 98,930 118,677
Cash and cash equivalents, end of period 100,739 105,989
Supplemental cash flow information:    
Taxes paid 566 634
Interest paid 1,062 2,485
Wall Street Financial Group    
Acquisition of certain assets of Wall Street:    
Assets acquired 0 3,468
Contingent consideration payable to seller 0 (2,276)
Net cash paid in acquisition 0 1,192
Foothill Securities    
Acquisition of certain assets of Wall Street:    
Assets acquired 0 0
Contingent consideration payable to seller (180) 0
Net cash paid in acquisition $ (180) $ 0