Supplemental Guarantor Condensed Consolidated Financial Statements

6 Months Ended

Jun. 30, 2011

Supplemental Guarantor Financial Statements Abstract

Supplemental Guarantor Condensed Consolidated Financial Statements

12. Supplemental Guarantor Condensed Consolidated Financial Statements

The Company’s Senior Secured Notes are jointly and severally and fully and unconditionally guaranteed on a senior basis by E.A. Viner International Co. and Viner Finance Inc. (together, the Guarantors). Each of the Guarantors is 100% owned by the Company. The following condensed consolidating financial statements present the financial position, results of operations and cash flows of the Company (referred to as “Parent” for purposes of this note only), the Guarantor subsidiaries, the Non-Guarantor subsidiaries and elimination entries necessary to consolidate the Company. Investments in subsidiaries are accounted for using the equity method for purposes of the consolidated presentation.

OPPENHEIMER HOLDINGS INC.
CONDENSED CONSOLIDATING BALANCE SHEET (unaudited)
AS AT JUNE 30, 2011

			Guarantor			Non-guarantor			Elimin-
Expressed in thousands of dollars.	Parent		Subsidiaries			Subsidiaries			ations			Consolidated
ASSETS
Cash and cash equivalents	$	748	$	49,472		$	59,341		$	—		$	109,561
Cash and securities segregated for regulatory and other purposes		—		—			180,498			—			180,498
Deposits with clearing organizations		—		—			25,058			—			25,058
Receivable from brokers and clearing organizations		—		34			359,871			(1	)		359,904
Receivable from customers, net of allowance for credit losses of $2,430		—		—			923,666			—			923,666
Income taxes receivable		2,099		27,094			(702	)		(25,337	)		3,155
Securities purchased under agreement to resell		—		—			562,482			—			562,482
Securities owned, including amounts pledged of $434,315, at fair value		12,000		—			1,035,628			—			1,047,628
Subordinated loan receivable		—		112,558			—			(112,558	)		—
Notes receivable, net		—		—			60,050			—			60,050
Office facilities, net		—		—			19,855			—			19,855
Deferred tax asset		93		—			16,920			(17,013	)		—
Intangible assets, net		—		—			38,816			—			38,816
Goodwill		—		—			132,472			—			132,472
Other		4,296		169			156,480			59			161,004
Investment in subsidiaries		491,174		890,664			(191,593	)		(1,190,245	)		—
Intercompany receivables		191,755		(156,624	)		816			(35,947	)		—
	$	702,165	$	923,368		$	3,379,659		$	(1,381,042	)	$	3,624,149

OPPENHEIMER HOLDINGS INC.
CONDENSED CONSOLIDATING BALANCE SHEET (unaudited)
AS AT JUNE 30, 2011

			Guarantor			Non-guarantor		Elimin-
Expressed in thousands of dollars.	Parent		Subsidiaries			Subsidiaries		ations			Consolidated
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Drafts payable	$	—	$	—		$	38,290	$	—		$	38,290
Bank call loans		—		—			159,000		—			159,000
Payable to brokers and clearing organizations		—		—			395,280		—			395,280
Payable to customers		—		—			560,486		—			560,486
Securities sold under agreement to repurchase		—		—			1,168,455		—			1,168,455
Securities sold, but not yet purchased, at fair value		—		—			181,474		—			181,474
Accrued compensation		—		—			120,424		—			120,423
Accounts payable and other liabilities		3,965		843			270,183		42			275,033
Income taxes payable		2,440		22,564			333		(25,337	)		—
Senior secured note		—		—			—		200,000			200,000
Subordinated indebtedness		200,000		—			112,558		(312,558	)		—
Deferred income tax, net		—		(943	)		36,429		(17,013	)		18,473
Excess of fair value of acquired assets over cost		—		—			7,020		—			7,020
Intercompany payables		—		35,931			—		(35,931	)		—
		206,405		58,395			3,049,931		(190,797	)		3,123,936
Stockholders’ equity attributable to the Oppenheimer Holdings Inc.		495,760		864,973			325,272		(1,190,245	)		495,760
Noncontrolling interest							4,454					4,454
Stockholders’ equity		495,760		864,973			329,726		(1,190,245	)		500,214
	$	702,165	$	923,338		$	3,379,659		(1,381,042	)	$	3,624,149

OPPENHEIMER HOLDINGS INC.
CONDENSED CONSOLIDATING BALANCE SHEET (unaudited)
AS AT DECEMBER 31, 2010

			Guarantor			Non-guarantor			Elimin-
Expressed in thousands of dollars.	Parent		Subsidiaries			Subsidiaries			ations			Consolidated
ASSETS
Cash and cash equivalents	$	361	$	(241	)	$	52,734		$	—		$	52,854
Cash and securities segregated for regulatory and other purposes		—		—			142,446			—			142,446
Deposits with clearing organizations		—		—			23,228			—			23,228
Receivable from brokers and clearing organizations		—		62			302,782			—			302,844
Receivable from customers, net of allowance for credit losses of $2,716		—		—			924,817			—			924,817
Income taxes receivable		—		33,557			(702	)		(27,876	)		4,979
Securities purchased under agreement to resell		—		—			347,070			—			347,070
Securities owned, including amounts pledged of $102,501, at fair value		—		—			367,019			—			367,019
Subordinated loan receivable		—		12,558			100,000			(112,558	)		—
Notes receivable, net		—		—			59,786			—			59,786
Office facilities, net		—		—			22,875			—			22,875
Intangible assets, net		—		—			40,979			—			40,979
Goodwill		—		—			132,472			—			132,472
Other		—		(347	)		198,954			58			198,665
Investment in subsidiaries		484,639		782,915			(152,852	)		(1,114,702	)		—
Intercompany receivables		12,135		21,862			1,847			(35,846	)		—
	$	497,135	$	850,366		$	2,563,455		$	(1,290,922	)	$	2,620,034

OPPENHEIMER HOLDINGS INC.
CONDENSED CONSOLIDATING BALANCE SHEET (unaudited)
AS AT DECEMBER 31, 2010

			Guarantor		Non-guarantor		Elimin-
Expressed in thousands of dollars.	Parent		Subsidiaries		Subsidiaries		ations			Consolidated
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Drafts payable	$	—	$	—	$	61,055	$	—		$	61,055
Bank call loans		—		—		147,000		—			147,000
Payable to brokers and clearing organizations		—		—		372,697		—			372,697
Payable to customers		—		—		406,916		—			406,916
Securities sold under agreement to repurchase		—		—		390,456		—			390,456
Securities sold, but not yet purchased, at fair value		—		—		160,052		—			160,052
Accrued compensation		—		—		175,938		—			175,938
Accounts payable and other liabilities		131		—		262,268		107			262,506
Income taxes payable		2,440		22,188		3,248		(27,876	)		—
Senior secured credit note		—		—		22,503		—			22,503
Subordinated note		—		—		212,558		(112,558	)		100,000
Deferred income tax, net		—		—		16,292		3			16,295
Excess of fair value of acquired assets over cost		—		—		7,020		—			7,020
Intercompany payables		—		35,896		—		(35,896	)		—
		2,571		58,084		2,238,003		(176,220	)		2,122,438
Stockholders’ equity attributable to the Oppenheimer Holdings Inc.		494,564		792,282		322,420		(1,114,702	)		494,564
Noncontrolling interest		—		—		3,032		—			3,032
Stockholders’ equity		494,564		792,282		325,452		(1,114,702	)		497,596
	$	497,135	$	850,366	$	2,563,455	$	(1,290,922	)	$	2,620,034

OPPENHEIMER HOLDINGS INC.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (unaudited)
FOR THE THREE MONTHS ENDED JUNE 30, 2011

				Guarantor			Non-guarantor		Elimin-
Expressed in thousands of dollars.	Parent			Subsidiaries			Subsidiaries		ations			Consolidated
REVENUE
Commissions	$	—		$	—		$	120,790	$	—		$	120,790
Principal transactions, net		—			(308	)		13,621		—			13,313
Interest		—			2,671			13,441		(2,463	)		13,649
Investment banking		—			—			34,717		(1,000	)		33,717
Advisory fees		—			—			50,662		(607	)		50,055
Other		—			—			12,994					12,994
		—			2,363			246,225		(4,070	)		244,518
EXPENSES
Compensation and related expenses		48			—			160,388		—			160,436
Clearing and exchange fees		—			—			6,300		—			6,300
Communications and technology		7			—			16,062		—			16,069
Occupancy and equipment costs		—			—			18,524		—			18,524
Interest		3,791			1,924			7,417		(2,463	)		10,669
Other		1,331			11			31,081		(1,607	)		30,816
		5,177			1,935			239,772		(4,070	)		242,814
Profit (loss) before income taxes		(5,177	)		428			6,453		—			1,704
Income tax provision (benefit)		(2,058	)		240			3,084		—			1,266
Net profit (loss) for the period		(3,119	)		188			3,369		—			438
Less net profit attributable to non- Controlling interest, net of tax		—			—			747		—			747
Equity in subsidiaries		2,810			—			—		(2,810	)		—
Net profit (loss) attributable to Oppenheimer Holdings Inc.	$	(309	)	$	188		$	2,622		—		$	(309	)

OPPENHEIMER HOLDINGS INC.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (unaudited)
FOR THE SIX MONTHS ENDED JUNE 30, 2011

				Guarantor			Non-guarantor		Elimin-
Expressed in thousands of dollars.	Parent			Subsidiaries			Subsidiaries		ations			Consolidated
REVENUE
Commissions	$	—		$	—		$	257,645	$	—		$	257,645
Principal transactions, net		—			(307	)		24,611		—			24,304
Interest		—			4,419			28,230		(4,211	)		28,438
Investment banking		—			—			63,158		(1,000	)		62,158
Advisory fees		—			—			99,695		(1,191	)		98,504
Other		—			—			26,886					26,886
		—			4,112			500,225		(6,402	)		497,935
EXPENSES
Compensation and related expenses		152			—			330,699		—			330,851
Clearing and exchange fees		—			—			12,613		—			12,613
Communications and technology		21			—			31,987		—			32,008
Occupancy and equipment costs		—			—			37,070		—			37,070
Interest		3,791			3,428			15,435		(4,211	)		18,443
Other		1,546			262			55,800		(2,191	)		55,417
		5,510			3,690			483,604		(6,402	)		486,402
Profit (loss) before income taxes		(5,510	)		422			16,621					11,533
Income tax provision (benefit)		(2,192	)		265			7,261		—			5,334
Net profit (loss) for the period		(3,318	)		157			9,360		—			6,199
Less net profit attributable to non- Controlling interest, net of tax		—			—			1,422		—			1,422
Equity in subsidiaries		8,095			—			—		(8,095	)		—
Net profit  attributable to Oppenheimer Holdings Inc.	$	4,777		$	157		$	7,938		—		$	4,777

OPPENHEIMER HOLDINGS INC.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (unaudited)
FOR THE THREE MONTHS ENDED JUNE 30, 2010

				Guarantor		Non-guarantor		Elimin-
Expressed in thousands of dollars.	Parent			Subsidiaries		Subsidiaries		ations			Consolidated
REVENUE
Commissions	$	—		$	—	$	139,582	$	—		$	139,582
Principal transactions, net		—			—		16,778		—			16,778
Interest		—			1,761		11,197		(1,760	)		11,198
Investment banking		—			—		36,336		—			36,336
Advisory fees		—			—		44,480		(496	)		43,984
Other		—			—		9,118					9,118
		—			1,761		257,491		(2,256	)		256,996
EXPENSES
Compensation and related expenses		95			—		164,209		—			164,304
Clearing and exchange fees		—			—		7,823		—			7,823
Communications and technology		14			—		16,286		—			16,300
Occupancy and equipment costs		—			—		18,262		—			18,262
Interest		—			1,518		6,631		(1,760	)		6,389
Other		188			87		27,993		(496	)		27,772
		297			1,605		241,204		(2,256	)		240,850
Profit (loss) before income taxes		(297	)		156		16,287		—			16,146
Income tax provision (benefit)		(119	)		54		6,349		—			6,284
Net profit (loss) for the period		(178	)		102		9,938		—			9,862
Less net profit attributable to non- controlling interest, net of tax		—			—		660		—			660
Equity in subsidiaries		9,380			—		—		(9,380	)		—
Net profit  attributable to Oppenheimer Holdings Inc.	$	9,202		$	102	$	9,278		—		$	9,202

OPPENHEIMER HOLDINGS INC.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (unaudited)
FOR THE SIX MONTHS ENDED JUNE 30, 2010

				Guarantor			Non-guarantor		Elimin-
Expressed in thousands of dollars.	Parent			Subsidiaries			Subsidiaries		ations			Consolidated
REVENUE
Commissions	$	—		$	—		$	277,779	$	—		$	277,779
Principal transactions, net		—			(276	)		37,233		—			36,957
Interest		—			3,496			20,776		(3,496	)		20,776
Investment banking		—			—			61,520		—			61,520
Advisory fees		—			—			87,766		(988	)		86,778
Other		—			—			19.361		—			19,361
		—			3,220			504,435		(4,484	)		503,171
EXPENSES
Compensation and related expenses		102			—			322,381		—			322,483
Clearing and exchange fees		—			—			14,385		—			14,385
Communications and technology		29			—			32,711		—			32,740
Occupancy and equipment costs		—			—			36,722		—			36,722
Interest		—			3,360			11,826		(3,496	)		11,690
Other		477			100			53,556		(988	)		53,145
		608			3,460			471,581		(4,484	)		471,165
Profit (loss) before income taxes		(608	)		(240	)		32,854		—			32,006
Income tax provision (benefit)		(243	)		(97	)		13,120		—			12,780
Net profit (loss) for the period		(365	)		(143	)		19,734		—			19,226
Less net profit attributable to non- controlling interest, net of tax		—			—			856		—			856
Equity in subsidiaries		18,735			—			—		(18,735	)		—
Net profit  attributable to Oppenheimer Holdings Inc.	$	18,370		$	(143	)	$	18,878		—		$	18,370

OPPENHEIMER HOLDINGS INC.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (unaudited)
FOR THE SIX MONTHS ENDED JUNE 30, 2011

				Guarantor			Non-guarantor			Elimin-
Expressed in thousands of dollars.	Parent			Subsidiaries			Subsidiaries			ations			Consolidated
Cash flows from operations:
Net profit (loss) for the period	$	(3,318	)	$	157		$	9,360		$	—		$	6,199
Adjustments to reconcile net profit (loss) to net cash used in operating activities:
Depreciation and amortization		—			—			6,437			—			6,437
Deferred income tax		(93	)		(943	)		3,213			—			2,177
Amortization of notes receivable		—			—			10,140			—			10,140
Amortization of debt issuance costs		—			—			571			—			571
Amortization of intangibles		—			—			2,163			—			2,163
Provision for credit losses		—			—			(286	)		—			(286	)
Share-based compensation		—			—			2,720			—			2,720
Changes in operating assets and liabilities		(194,182	)		85,714			52,793			69			(55,608	)
Cash provided by (used in) continuing operations		(197,594	)		84,928			87,111			69			(25,487	)
Cash flows from investing activities:
Purchase of office facilities		—			—			(3,013	)		—			(3,013	)
Cash used in investing activities		—			—			(3,013	)		—			(3,013	)
Cash flows from financing activities:
Cash dividends paid on Class A non-voting and Class B voting common stock		(3,003	)		—			—			—			(3,003	)
Issuance of Class A non-voting common Stock		337			—			—			—			337
Senior secured note issuance		200,000			—			—			—			200,000
Senior secured credit note repayments		—			—			(22,503	)		—			(22,503	)
Subordinated note repayments		—			—			(100,000	)		—			(100,000	)
Other financing activities		646			(35,215	)		45,014			(69	)		10,376
Cash provided by (used in) financing activities		197,980			(35,215	)		(77,489	)		(69	)		85,207
Net increase (decrease) in cash and cash equivalents		387			49,713			6,607			—			56,707
Cash and cash equivalents, beginning of period		361			(241	)		52,734			—			52,854
Cash and cash equivalents, end of period	$	748		$	49,472		$	59,341			—		$	109,561

OPPENHEIMER HOLDINGS INC.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (unaudited)
FOR THE SIX MONTHS ENDED JUNE 30, 2010

				Guarantor			Non-guarantor			Elimin-
Expressed in thousands of dollars.	Parent			Subsidiaries			Subsidiaries			ations			Consolidated
Cash flows from operations:
Net profit (loss) for the period		($365	)		($143	)	$	19,734					$	19,226
Adjustments to reconcile net profit (loss) to net cash used in operating activities:		—			—			—						—
Depreciation and amortization		—			—			6,007						6,007
Deferred income tax		—			—			8,960						8,960
Amortization of notes receivable		—			—			10,005						10,005
Amortization of debt issuance costs		—			—			391						391
Amortization of intangibles		—			—			2,162						2,162
Provision for credit losses		—			—			359						359
Share-based compensation		—			—			(408	)					(408	)
Changes in operating assets and liabilities		(56	)		(5,702	)		(113,949	)		(3,666	)		(123,373	)
Cash provided by (used in) continuing operations		(421	)		(5,845	)		(66,739	)		(3,666	)		(76,671	)
Cash flows from investing activities:
Purchase of office facilities		—			—			(5,607	)		—			(5,607	)
Cash used in investing activities		—			—			(5,607	)		—			(5,607	)
Cash flows from financing activities:
Cash dividends paid on Class A non- voting and Class B voting common stock		(2,932	)		—			—			—			(2,932	)
Issuance of Class A non-voting common Stock		2,002			—			—			—			2,002
Senior secured credit note repayments					—			(1,000	)		—			(1,000	)
Other financing activities		4,531			8,689			45,409			(3,666	)		62,296
Cash provided by (used in) financing activities		3,601			31,731			9,050			(3,666	)		60,366
Net increase (decrease) in cash and cash equivalents		3,180			2,845			(27,937	)		—			(21,912	)
Cash and cash equivalents, beginning of period		2,475			2,359			64,084			—			68,918
Cash and cash equivalents, end of period	$	5,655		$	5,204		$	36,147			—		$	47,006