Supplemental Guarantor Consolidated Financial Statements (Tables)

9 Months Ended

Sep. 30, 2018

Condensed Financial Information Disclosure [Abstract]

Condensed Income Statement

OPPENHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATING STATEMENT OF INCOME

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018

(Expressed in thousands)	Parent			Guarantor subsidiaries		Non-guarantor subsidiaries			Eliminations			Consolidated
REVENUES
Commissions	$	—		$	—	$	245,935		$	—		$	245,935
Advisory fees	—			—		233,953			(981		)	232,972
Investment banking	—			—		84,442			—			84,442
Bank deposit sweep income	—			—		84,203			—			84,203
Interest	4			6,183		38,732			(6,233		)	38,686
Principal transactions, net	—			—		9,149			(39		)	9,110
Other	—			345		19,549			(342		)	19,552
Total revenue	4			6,528		715,963			(7,595		)	714,900
EXPENSES
Compensation and related expenses	1,191			—		456,630			—			457,821
Communications and technology	123			—		55,164			—			55,287
Occupancy and equipment costs	—			—		45,777			(342		)	45,435
Clearing and exchange fees	—			—		17,254						17,254
Interest	10,125			—		28,895			(6,233		)	32,787
Other	883			1,372		75,811			(1,020		)	77,046
Total expenses	12,322			1,372		679,531			(7,595		)	685,630
Income (Loss) before income taxes	(12,318		)	5,156		36,432			—			29,270
Income taxes	(3,081		)	1,112		10,630			—			8,661
Net income (loss) from continuing operations	(9,237		)	4,044		25,802			—			20,609
Equity in earnings of subsidiaries	29,868			25,824		—			(55,692		)	—
Net income	20,631			29,868		25,802			(55,692		)	20,609
Less net loss attributable to non-controlling interest, net of tax	—			—		(22		)	—			(22		)
Net income attributable to Oppenheimer Holdings Inc.	20,631			29,868		25,824			(55,692		)	20,631
Other comprehensive loss	—			—		(880		)	—			(880		)
Total comprehensive income	$	20,631		$	29,868	$	24,944		$	(55,692	)	$	19,751

OPPENHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATING STATEMENT OF INCOME

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2017

(Expressed in thousands)	Parent			Guarantor subsidiaries		Non-guarantor subsidiaries		Eliminations			Consolidated
REVENUES
Commissions	$	—		$	—	$	248,204	$	—		$	248,204
Advisory fees	—			—		217,510		(989		)	216,521
Investment banking	—			—		60,347		(3,000		)	57,347
Bank deposit sweep income	—			—		52,992		—			52,992
Interest	—			7,529		36,379		(7,562		)	36,346
Principal transactions, net	—			17		15,793		—			15,810
Other	22			267		28,122		(266		)	28,145
Total revenue	22			7,813		659,347		(11,817		)	655,365
EXPENSES
Compensation and related expenses	976			—		427,649		—			428,625
Communications and technology	112			—		53,774		—			53,886
Occupancy and equipment costs	—			—		45,987		(266		)	45,721
Clearing and exchange fees	—			—		17,392		—			17,392
Interest	10,365			—		15,907		(7,562		)	18,710
Other	4,661			329		86,864		(3,989		)	87,865
Total expenses	16,114			329		647,573		(11,817		)	652,199
Income (Loss) before income taxes	(16,092		)	7,484		11,774		—			3,166
Income taxes	(6,184		)	2,860		5,788		—			2,464
Net income (loss) from continuing operations	(9,908		)	4,624		5,986		—			702
Discontinued operations
Income from discontinued operations	—			—		1,834		—			1,834
Income taxes	—			—		733		—			733
Net income from discontinued operations	—			—		1,101		—			1,101
Equity in earnings of subsidiaries	11,531			6,907		—		(18,438		)	—
Net income	1,623			11,531		7,087		(18,438		)	1,803
Less net income attributable to non-controlling interest, net of tax	—			—		180		—			180
Net income attributable to Oppenheimer Holdings Inc.	1,623			11,531		6,907		(18,438		)	1,623
Other comprehensive income	—			—		1,953		—			1,953
Total comprehensive income	$	1,623		$	11,531	$	8,860	$	(18,438	)	$	3,576

Condensed Consolidating Balance Sheet

OPPENHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF SEPTEMBER 30, 2018

(Expressed in thousands)	Parent		Guarantor subsidiaries		Non-guarantor subsidiaries		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	479	$	4,653	$	32,399	$	—		$	37,531
Deposits with clearing organizations	—		—		53,956		—			53,956
Receivable from brokers, dealers and clearing organizations	—		—		205,031		—			205,031
Receivable from customers, net of allowance for credit losses of $859	—		—		797,751		—			797,751
Income tax receivable	47,898		24,284		—		(68,687		)	3,495
Securities purchased under agreements to resell	—		—		1,502		—			1,502
Securities owned, including amounts pledged of $738,835, at fair value	—		1,369		893,882		—			895,251
Notes receivable, net of accumulated amortization and allowance for uncollectibles of $24,334 and $7,126, respectively	—		—		43,278		—			43,278
Furniture, equipment and leasehold improvements, net of accumulated depreciation of $87,165	—		21,333		7,509		—			28,842
Subordinated loan receivable	—		112,558		—		(112,558		)	—
Intangible assets	—		400		31,700		—			32,100
Goodwill	—		—		137,889		—			137,889
Other assets	100		2,580		116,979		—			119,659
Deferred tax assets	66		116		19,654		(19,836		)	—
Investment in subsidiaries	651,369		534,754		—		(1,186,123		)	—
Intercompany receivables	48,592		48,042		—		(96,634		)	—
Total assets	$	748,504	$	750,089	$	2,341,530	$	(1,483,838	)	$	2,356,285
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Drafts payable	$	—	$	—	$	29,242	$	—		$	29,242
Bank call loans	—		—		3,000		—			3,000
Payable to brokers, dealers and clearing organizations	—		—		219,443		—			219,443
Payable to customers	—		—		351,750		—			351,750
Securities sold under agreements to repurchase	—		—		606,010		—			606,010
Securities sold but not yet purchased, at fair value	—		—		143,746		—			143,746
Accrued compensation	—		—		151,658		—			151,658
Accounts payable and other liabilities	3,495		31,945		60,380		—			95,820
Income tax payable	2,440		22,189		44,058		(68,687		)	—
Senior secured notes, net of debt issuance cost of $969	199,031		—		—		—			199,031
Subordinated indebtedness	—		—		112,558		(112,558		)	—
Deferred tax liabilities	—		—		32,544		(19,836		)	12,708
Intercompany payables	—		28,141		68,493		(96,634		)	—
Total liabilities	204,966		82,275		1,822,882		(297,715		)	1,812,408
Stockholders' equity
Stockholders' equity attributable to Oppenheimer Holdings Inc.	543,538		667,814		518,309		(1,186,123		)	543,538
Non-controlling interest	—		—		339		—			339
Total stockholders' equity	543,538		667,814		518,648		(1,186,123		)	543,877
Total liabilities and stockholders' equity	$	748,504	$	750,089	$	2,341,530	$	(1,483,838	)	$	2,356,285

OPPENHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2017

(Expressed in thousands)	Parent		Guarantor subsidiaries		Non-guarantor subsidiaries		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	7,442	$	3,716	$	36,996	$	—		$	48,154
Deposits with clearing organizations	—		—		42,222		—			42,222
Receivable from brokers, dealers and clearing organizations	—		—		187,115		—			187,115
Receivable from customers, net of allowance for credit losses of $769	—		—		848,226		—			848,226
Income tax receivable	45,998		26,025		—		(69,084		)	2,939
Securities purchased under agreements to resell	—		—		658		—			658
Securities owned, including amounts pledged of $655,683, at fair value	—		1,386		925,211		—			926,597
Notes receivable, net of accumulated amortization and allowance for uncollectibles of $24,705 and $7,975, respectively	—		—		40,520		—			40,520
Furniture, equipment and leasehold improvements, net of accumulated depreciation of $82,826	—		20,221		6,966		—			27,187
Subordinated loan receivable	—		112,558		—		(112,558		)	—
Intangible assets	—		—		31,700		—			31,700
Goodwill	—		—		137,889		—			137,889
Other assets	133		2,573		142,604		—			145,310
Deferred tax assets	3,502		—		18,463		(21,965		)	—
Investment in subsidiaries	622,824		507,747		—		(1,130,571		)	—
Intercompany receivables	52,149		83,437		—		(135,586		)	—
Total assets	$	732,048	$	757,663	$	2,418,570	$	(1,469,764	)	$	2,438,517
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Drafts payable	$	—	$	—	$	42,412	$	—		$	42,412
Bank call loans	—		—		118,300		—			118,300
Payable to brokers, dealers and clearing organizations	—		—		211,483		—			211,483
Payable to customers	—		—		385,907		—			385,907
Securities sold under agreements to repurchase	—		—		586,478		—			586,478
Securities sold but not yet purchased, at fair value	—		—		94,486		—			94,486
Accrued compensation	—		—		173,116		—			173,116
Accounts payable and other liabilities	7,221		33,994		51,280		—			92,495
Income tax payable	2,440		22,189		44,455		(69,084		)	—
Senior secured notes, net of debt issuance costs of $1,163	198,837		—		—		—			198,837
Subordinated indebtedness	—		—		112,558		(112,558		)	—
Deferred tax liabilities	—		17		33,040		(21,965		)	11,092
Intercompany payables	—		62,163		73,423		(135,586		)	—
Total liabilities	208,498		118,363		1,926,938		(339,193		)	1,914,606
Stockholders' equity
Stockholders' equity attributable to Oppenheimer Holdings Inc.	523,550		639,300		491,271		(1,130,571		)	523,550
Non-controlling interest	—		—		361		—			361
Total stockholders' equity	523,550		639,300		491,632		(1,130,571		)	523,911
Total liabilities and stockholders' equity	$	732,048	$	757,663	$	2,418,570	$	(1,469,764	)	$	2,438,517

Condensed Consolidating Statement of Cash Flows

OPPENHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018

(Expressed in thousands)	Parent			Guarantor subsidiaries			Non-guarantor subsidiaries			Eliminations		Consolidated
Cash flows from operating activities:
Cash provided by (used in) operating activities	$	(131	)	$	1,337		$	117,073		$	—	$	118,279
Cash flows from investing activities:
Purchase of furniture, equipment and leasehold improvements	—			—			(6,654		)	—		(6,654		)
Purchase of tangible assets	—			(400		)	—			—		(400		)
Proceeds from the settlement of Company-owned life insurance	—			—			284			—		284
Cash used in investing activities	—			(400		)	(6,370		)	—		(6,770		)
Cash flows from financing activities:
Cash dividends paid on Class A non-voting and Class B voting common stock	(4,373		)	—			—			—		(4,373		)
Issuance of Class A non-voting common stock	70			—			—			—		70
Payments for employee taxes withheld related to vested share-based awards	(2,529		)	—			—			—		(2,529		)
Decrease in bank call loans, net	—			—			(115,300		)	—		(115,300		)
Cash used in financing activities	(6,832		)	—			(115,300		)	—		(122,132		)
Net increase (decrease) in cash and cash equivalents	(6,963		)	937			(4,597		)	—		(10,623		)
Cash and cash equivalents, beginning of the period	7,442			3,716			36,996			—		48,154
Cash and cash equivalents, end of the period	$	479		$	4,653		$	32,399		$	—	$	37,531

OPPENHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2017

(Expressed in thousands)	Parent			Guarantor subsidiaries		Non-guarantor subsidiaries			Eliminations		Consolidated
Cash flows from operating activities:
Cash provided by (used in) operating activities	$	(34,449	)	$	1,679	$	(1,616	)	$	—	$	(34,386	)
Cash flows from investing activities:
Purchase of furniture, equipment and leasehold improvements	—			—		(3,506		)	—		(3,506		)
Proceeds from settlement of company-owned life insurance	—			—		1,194			—		1,194
Cash used in investing activities	—			—		(2,312		)	—		(2,312		)
Cash flows from financing activities:
Cash dividends paid on Class A non-voting and Class B voting common stock	(4,394		)	—		—			—		(4,394		)
Cash dividends paid to non-controlling interest	—			—		(2,448		)	—		(2,448		)
Repurchase of Class A non-voting common stock for cancellation	(7,464		)	—		—			—		(7,464		)
Payments for employee taxes withheld related to vested share-based awards	(2,232		)	—		—			—		(2,232		)
Issuance of senior secured notes	200,000			—		—			—		200,000
Redemption of senior secured notes	(150,000		)	—		—			—		(150,000		)
Debt issuance costs	(1,183		)	—		—			—		(1,183		)
Decrease in bank call loans, net	—			—		(15,700		)	—		(15,700		)
Cash provided by (used in) financing activities	34,727			—		(18,148		)	—		16,579
Net increase (decrease) in cash and cash equivalents	278			1,679		(22,076		)	—		(20,119		)
Cash and cash equivalents, beginning of the period	229			10,284		54,400			—		64,913
Cash and cash equivalents, end of the period	$	507		$	11,963	$	32,324		$	—	$	44,794