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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Oppenheimer Holdings Inc | NYSE:OPY | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.07 | -0.17% | 41.68 | 42.07 | 41.5101 | 41.66 | 20,640 | 23:44:23 |
|
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x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
|
Delaware
|
98-0080034
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
|
|
Large accelerated filer
|
o
|
|
Accelerated filer
|
x
|
|
|
|
|
|
Non-accelerated filer
|
o
|
(Do not check if a smaller reporting company)
|
Smaller reporting company
|
o
|
|
|
|
|
|
Emerging growth company
|
o
|
|
|
|
|
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Page No.
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PART I
|
|
|
Item 1.
|
|
|
|
||
|
||
|
||
|
||
|
||
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
PART II
|
|
|
Item 1.
|
||
Item 1A.
|
||
Item 2.
|
||
Item 6.
|
||
|
(Expressed in thousands, except number of shares and per share amounts)
|
June 30, 2018
|
|
December 31, 2017
|
||||
ASSETS
|
|
|
|
||||
Cash and cash equivalents
|
$
|
38,961
|
|
|
$
|
48,154
|
|
Deposits with clearing organizations
|
56,864
|
|
|
42,222
|
|
||
Receivable from brokers, dealers and clearing organizations
|
204,527
|
|
|
187,115
|
|
||
Receivable from customers, net of allowance for credit losses of $848 ($769 in 2017)
|
835,708
|
|
|
848,226
|
|
||
Income tax receivable
|
2,818
|
|
|
2,939
|
|
||
Securities purchased under agreements to resell, at fair value
|
6,738
|
|
|
658
|
|
||
Securities owned, including amounts pledged of $692,286 ($655,683 in 2017), at fair value
|
1,020,404
|
|
|
926,597
|
|
||
Notes receivable, net of accumulated amortization and allowance for uncollectibles of $24,788 and $8,051, respectively ($24,705 and $7,975, respectively, in 2017)
|
42,410
|
|
|
40,520
|
|
||
Furniture, equipment and leasehold improvements, net of accumulated depreciation of $85,815 ($82,826 in 2017)
|
27,994
|
|
|
27,187
|
|
||
Intangible assets
|
32,100
|
|
|
31,700
|
|
||
Goodwill
|
137,889
|
|
|
137,889
|
|
||
Other assets
|
114,867
|
|
|
145,310
|
|
||
Total assets
|
$
|
2,521,280
|
|
|
$
|
2,438,517
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
||||
Liabilities
|
|
|
|
||||
Drafts payable
|
$
|
21,632
|
|
|
$
|
42,412
|
|
Bank call loans
|
107,500
|
|
|
118,300
|
|
||
Payable to brokers, dealers and clearing organizations
|
282,542
|
|
|
211,483
|
|
||
Payable to customers
|
373,664
|
|
|
385,907
|
|
||
Securities sold under agreements to repurchase
|
599,151
|
|
|
586,478
|
|
||
Securities sold but not yet purchased, at fair value
|
162,042
|
|
|
94,486
|
|
||
Accrued compensation
|
128,985
|
|
|
173,116
|
|
||
Accounts payable and other liabilities
|
94,353
|
|
|
92,495
|
|
||
Senior secured notes, net of debt issuance costs of $1,034 ($1,163 in 2017)
|
198,966
|
|
|
198,837
|
|
||
Deferred tax liabilities, net of deferred tax assets of $44,906 ($47,597 in 2017)
|
13,804
|
|
|
11,092
|
|
||
Total liabilities
|
1,982,639
|
|
|
1,914,606
|
|
||
Commitments and contingencies (note 12)
|
|
|
|
||||
Stockholders' equity
|
|
|
|
||||
Share capital
|
|
|
|
||||
Class A non-voting common stock, par value $0.001 per share, 50,000,000 shares authorized, 13,156,353 and 13,139,203 shares issued and outstanding as of June 30, 2018 and December 31, 2017, respectively
|
58,692
|
|
|
58,359
|
|
||
Class B voting common stock, par value $0.001 per share, 99,665 shares authorized, issued and outstanding as of June 30, 2018 and December 31, 2017
|
133
|
|
|
133
|
|
||
|
58,825
|
|
|
58,492
|
|
||
Contributed capital
|
39,287
|
|
|
36,546
|
|
||
Retained earnings
|
439,577
|
|
|
426,930
|
|
||
Accumulated other comprehensive income
|
603
|
|
|
1,582
|
|
||
Total Oppenheimer Holdings Inc. stockholders' equity
|
538,292
|
|
|
523,550
|
|
||
Non-controlling interest
|
349
|
|
|
361
|
|
||
Total stockholders' equity
|
538,641
|
|
|
523,911
|
|
||
Total liabilities and stockholders' equity
|
$
|
2,521,280
|
|
|
$
|
2,438,517
|
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
(Expressed in thousands, except number of shares and per share amounts)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
REVENUE
|
|
|
|
|
|
|
|
||||||||
Commissions
|
$
|
82,850
|
|
|
$
|
83,852
|
|
|
$
|
166,257
|
|
|
$
|
170,569
|
|
Advisory fees
|
77,270
|
|
|
72,783
|
|
|
154,818
|
|
|
142,192
|
|
||||
Investment banking
|
27,904
|
|
|
15,386
|
|
|
56,114
|
|
|
33,407
|
|
||||
Bank deposit sweep income
|
28,853
|
|
|
17,720
|
|
|
54,150
|
|
|
31,846
|
|
||||
Interest
|
13,056
|
|
|
12,829
|
|
|
25,283
|
|
|
23,394
|
|
||||
Principal transactions, net
|
6,400
|
|
|
5,302
|
|
|
9,126
|
|
|
10,675
|
|
||||
Other
|
6,223
|
|
|
8,012
|
|
|
11,338
|
|
|
17,062
|
|
||||
Total revenue
|
242,556
|
|
|
215,884
|
|
|
477,086
|
|
|
429,145
|
|
||||
EXPENSES
|
|
|
|
|
|
|
|
||||||||
Compensation and related expenses
|
151,871
|
|
|
142,657
|
|
|
304,975
|
|
|
286,535
|
|
||||
Communications and technology
|
17,997
|
|
|
18,399
|
|
|
36,685
|
|
|
36,105
|
|
||||
Occupancy and equipment costs
|
14,901
|
|
|
15,161
|
|
|
30,329
|
|
|
30,433
|
|
||||
Clearing and exchange fees
|
5,780
|
|
|
5,916
|
|
|
11,876
|
|
|
11,770
|
|
||||
Interest
|
10,909
|
|
|
6,854
|
|
|
19,872
|
|
|
12,210
|
|
||||
Other
|
28,597
|
|
|
28,534
|
|
|
51,223
|
|
|
60,754
|
|
||||
Total expenses
|
230,055
|
|
|
217,521
|
|
|
454,960
|
|
|
437,807
|
|
||||
Income (Loss) before income taxes from continuing operations
|
12,501
|
|
|
(1,637
|
)
|
|
22,126
|
|
|
(8,662
|
)
|
||||
Income taxes
|
3,662
|
|
|
(274
|
)
|
|
6,578
|
|
|
(1,961
|
)
|
||||
Net income (loss) from continuing operations
|
8,839
|
|
|
(1,363
|
)
|
|
15,548
|
|
|
(6,701
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Discontinued operations
|
|
|
|
|
|
|
|
||||||||
Income from discontinued operations
|
—
|
|
|
89
|
|
|
—
|
|
|
1,065
|
|
||||
Income taxes
|
—
|
|
|
36
|
|
|
—
|
|
|
425
|
|
||||
Net income from discontinued operations
|
—
|
|
|
53
|
|
|
—
|
|
|
640
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income (loss)
|
8,839
|
|
|
(1,310
|
)
|
|
15,548
|
|
|
(6,061
|
)
|
||||
Less net income (loss) attributable to non-controlling interest, net of tax
|
(16
|
)
|
|
9
|
|
|
(12
|
)
|
|
105
|
|
||||
Net income (loss) attributable to Oppenheimer Holdings Inc.
|
$
|
8,855
|
|
|
$
|
(1,319
|
)
|
|
$
|
15,560
|
|
|
$
|
(6,166
|
)
|
|
|
|
|
|
|
|
|
||||||||
Basic net income (loss) per share attributable to Oppenheimer Holdings Inc.
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
0.67
|
|
|
$
|
(0.10
|
)
|
|
$
|
1.17
|
|
|
$
|
(0.50
|
)
|
Discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
0.04
|
|
||||
Net income (loss) per share
|
$
|
0.67
|
|
|
$
|
(0.10
|
)
|
|
$
|
1.17
|
|
|
$
|
(0.46
|
)
|
|
|
|
|
|
|
|
|
||||||||
Diluted net income (loss) per share attributable to Oppenheimer Holdings Inc.
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
0.63
|
|
|
$
|
(0.10
|
)
|
|
$
|
1.11
|
|
|
$
|
(0.50
|
)
|
Discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
0.04
|
|
||||
Net income (loss) per share
|
$
|
0.63
|
|
|
$
|
(0.10
|
)
|
|
$
|
1.11
|
|
|
$
|
(0.46
|
)
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares
|
|
|
|
|
|
|
|
||||||||
Basic
|
13,248,812
|
|
|
13,260,855
|
|
|
13,244,245
|
|
|
13,329,670
|
|
||||
Diluted
|
14,050,573
|
|
|
13,260,855
|
|
|
14,005,556
|
|
|
13,329,670
|
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
(Expressed in thousands)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net income (loss)
|
$
|
8,839
|
|
|
$
|
(1,310
|
)
|
|
$
|
15,548
|
|
|
$
|
(6,061
|
)
|
Other comprehensive income (loss), net of tax
(1)
|
|
|
|
|
|
|
|
||||||||
Currency translation adjustment
|
(837
|
)
|
|
780
|
|
|
(979
|
)
|
|
2,204
|
|
||||
Comprehensive income (loss)
|
8,002
|
|
|
(530
|
)
|
|
14,569
|
|
|
(3,857
|
)
|
||||
Net income (loss) attributable to non-controlling interest, net of tax
|
(16
|
)
|
|
9
|
|
|
(12
|
)
|
|
105
|
|
||||
Comprehensive income (loss) attributable to Oppenheimer Holdings Inc.
|
$
|
8,018
|
|
|
$
|
(539
|
)
|
|
$
|
14,581
|
|
|
$
|
(3,962
|
)
|
(1)
|
No other comprehensive income (loss) is attributable to non-controlling interests.
|
(Expressed in thousands)
|
2018
|
|
2017
|
||||
Share capital
|
|
|
|
||||
Balance at beginning of period
|
$
|
58,492
|
|
|
$
|
59,361
|
|
Issuance of Class A non-voting common stock
|
333
|
|
|
3,857
|
|
||
Repurchase of Class A non-voting common stock for cancellation
|
—
|
|
|
(5,159
|
)
|
||
Balance at end of period
|
58,825
|
|
|
58,059
|
|
||
Contributed capital
|
|
|
|
||||
Balance at beginning of period
|
36,546
|
|
|
41,765
|
|
||
Share-based expense
|
3,096
|
|
|
2,644
|
|
||
Vested employee share plan awards
|
(355
|
)
|
|
(6,060
|
)
|
||
Cumulative-effect adjustment from adoption of new accounting update of employee share-based accounting
|
—
|
|
|
425
|
|
||
Balance at end of period
|
39,287
|
|
|
38,774
|
|
||
Retained earnings
|
|
|
|
||||
Balance at beginning of period
|
426,930
|
|
|
410,258
|
|
||
Net income (loss) attributable to Oppenheimer Holdings Inc.
|
15,560
|
|
|
(6,166
|
)
|
||
Dividends paid ($0.22 per share)
|
(2,913
|
)
|
|
(2,940
|
)
|
||
Dividends received from non-controlling interest
|
—
|
|
|
6
|
|
||
Cumulative-effect adjustment from adoption of new accounting update of employee share-based accounting
|
—
|
|
|
(314
|
)
|
||
Balance at end of period
|
439,577
|
|
|
400,844
|
|
||
Accumulated other comprehensive income (loss)
|
|
|
|
||||
Balance at beginning of period
|
1,582
|
|
|
(681
|
)
|
||
Currency translation adjustment
|
(979
|
)
|
|
2,204
|
|
||
Balance at end of period
|
603
|
|
|
1,523
|
|
||
Total Oppenheimer Holdings Inc. stockholders' equity
|
538,292
|
|
|
499,200
|
|
||
Non-controlling interest
|
|
|
|
||||
Balance at beginning of period
|
361
|
|
|
2,631
|
|
||
Net income (loss) attributable to non-controlling interest, net of tax
|
(12
|
)
|
|
105
|
|
||
Dividends paid to non-controlling interest
|
—
|
|
|
(816
|
)
|
||
Dividends paid to parent
|
—
|
|
|
(6
|
)
|
||
Balance at end of period
|
349
|
|
|
1,914
|
|
||
Total stockholders' equity
|
$
|
538,641
|
|
|
$
|
501,114
|
|
(Expressed in thousands)
|
2018
|
|
2017
|
||||
Cash flows from operating activities
|
|
|
|
||||
Net income (loss)
|
$
|
15,548
|
|
|
$
|
(6,061
|
)
|
Adjustments to reconcile net income (loss) to net cash used in operating activities
|
|
|
|
||||
Non-cash items included in net income (loss):
|
|
|
|
||||
Depreciation and amortization of furniture, equipment and leasehold improvements
|
3,140
|
|
|
2,783
|
|
||
Deferred income taxes
|
2,712
|
|
|
1,325
|
|
||
Amortization of notes receivable
|
6,378
|
|
|
5,756
|
|
||
Amortization of debt issuance costs
|
129
|
|
|
223
|
|
||
Write-off of debt issuance costs
|
—
|
|
|
430
|
|
||
Provision for (reversal of) credit losses
|
79
|
|
|
(4
|
)
|
||
Share-based compensation
|
5,216
|
|
|
1,715
|
|
||
Decrease (increase) in operating assets:
|
|
|
|
||||
Deposits with clearing organizations
|
(14,642
|
)
|
|
(2,500
|
)
|
||
Receivable from brokers, dealers and clearing organizations
|
(17,412
|
)
|
|
(9,772
|
)
|
||
Receivable from customers
|
12,439
|
|
|
(26,425
|
)
|
||
Income tax receivable
|
121
|
|
|
(4,289
|
)
|
||
Securities purchased under agreements to resell
|
(6,080
|
)
|
|
19,154
|
|
||
Securities owned
|
(93,807
|
)
|
|
(279,324
|
)
|
||
Notes receivable
|
(8,268
|
)
|
|
(11,897
|
)
|
||
Other assets
|
29,464
|
|
|
(9,317
|
)
|
||
Increase (decrease) in operating liabilities:
|
|
|
|
||||
Drafts payable
|
(20,780
|
)
|
|
(9,461
|
)
|
||
Payable to brokers, dealers and clearing organizations
|
71,059
|
|
|
18,189
|
|
||
Payable to customers
|
(12,243
|
)
|
|
48,616
|
|
||
Securities sold under agreements to repurchase
|
12,673
|
|
|
79,725
|
|
||
Securities sold but not yet purchased
|
67,556
|
|
|
149,728
|
|
||
Accrued compensation
|
(46,251
|
)
|
|
(30,925
|
)
|
||
Accounts payable and other liabilities
|
4,280
|
|
|
(8,054
|
)
|
||
Cash provided by (used in) operating activities
|
11,311
|
|
|
(70,385
|
)
|
||
Cash flows from investing activities
|
|
|
|
||||
Purchase of furniture, equipment and leasehold improvements
|
(3,947
|
)
|
|
(2,075
|
)
|
||
Purchase of intangible assets
|
(400
|
)
|
|
—
|
|
||
Proceeds from the settlement of Company-owned life insurance
|
—
|
|
|
1,194
|
|
||
Cash used in investing activities
|
(4,347
|
)
|
|
(881
|
)
|
||
Cash flows from financing activities
|
|
|
|
||||
Cash dividends paid on Class A non-voting and Class B voting common stock
|
(2,913
|
)
|
|
(2,940
|
)
|
||
Cash dividends paid to non-controlling interest
|
—
|
|
|
(816
|
)
|
||
Repurchase of Class A non-voting common stock for cancellation
|
—
|
|
|
(5,159
|
)
|
||
Payments for employee taxes withheld related to vested share-based awards
|
(2,444
|
)
|
|
(2,203
|
)
|
||
Issuance of senior secured notes
|
—
|
|
|
200,000
|
|
||
Redemption of senior secured notes
|
—
|
|
|
(150,000
|
)
|
||
Debt issuance costs
|
—
|
|
|
(547
|
)
|
||
(Decrease) Increase in bank call loans, net
|
(10,800
|
)
|
|
84,600
|
|
||
Cash (used in) provided by financing activities
|
(16,157
|
)
|
|
122,935
|
|
||
Net (decrease) increase in cash and cash equivalents
|
(9,193
|
)
|
|
51,669
|
|
||
Cash and cash equivalents, beginning of period
|
48,154
|
|
|
64,913
|
|
||
Cash and cash equivalents, end of period
|
$
|
38,961
|
|
|
$
|
116,582
|
|
Schedule of non-cash financing activities
|
|
|
|
||||
Employee share plan issuance
|
$
|
333
|
|
|
$
|
3,857
|
|
Supplemental disclosure of cash flow information
|
|
|
|
||||
Cash paid during the period for interest
|
$
|
26,899
|
|
|
$
|
14,607
|
|
Cash paid during the period for income taxes, net
|
$
|
3,918
|
|
|
$
|
551
|
|
OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
|
OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
|
OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
|
(Expressed in thousands)
|
For the Three Months Ended June 30, 2018
|
||||||||||||||||||
|
Reportable Segments
|
||||||||||||||||||
|
Private Client
|
|
Asset Management
|
|
Capital Markets
|
|
Corporate/Other
|
|
Total
|
||||||||||
Revenues from contracts with customers:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commissions from sales and trading
|
$
|
39,093
|
|
|
$
|
—
|
|
|
$
|
33,022
|
|
|
$
|
62
|
|
|
$
|
72,177
|
|
Mutual fund income
|
10,441
|
|
|
222
|
|
|
5
|
|
|
5
|
|
|
10,673
|
|
|||||
Advisory fees
|
59,774
|
|
|
17,485
|
|
|
3
|
|
|
8
|
|
|
77,270
|
|
|||||
Investment banking - capital markets
|
3,469
|
|
|
—
|
|
|
16,196
|
|
|
—
|
|
|
19,665
|
|
|||||
Investment banking - advisory
|
—
|
|
|
—
|
|
|
8,239
|
|
|
—
|
|
|
8,239
|
|
|||||
Bank deposit sweep income
|
28,853
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28,853
|
|
|||||
Other
|
3,430
|
|
|
3
|
|
|
457
|
|
|
(47
|
)
|
|
3,843
|
|
|||||
Total revenues from contracts with customers
|
145,060
|
|
|
17,710
|
|
|
57,922
|
|
|
28
|
|
|
220,720
|
|
|||||
Other sources of revenue:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest
|
9,514
|
|
|
(4
|
)
|
|
3,263
|
|
|
283
|
|
|
13,056
|
|
|||||
Principal transactions, net
|
212
|
|
|
—
|
|
|
6,989
|
|
|
(801
|
)
|
|
6,400
|
|
|||||
Other
|
1,767
|
|
|
—
|
|
|
32
|
|
|
581
|
|
|
2,380
|
|
|||||
Total other sources of revenue
|
11,493
|
|
|
(4
|
)
|
|
10,284
|
|
|
63
|
|
|
21,836
|
|
|||||
Total revenue
|
$
|
156,553
|
|
|
$
|
17,706
|
|
|
$
|
68,206
|
|
|
$
|
91
|
|
|
$
|
242,556
|
|
(Expressed in thousands)
|
For the Six Months Ended June 30, 2018
|
||||||||||||||||||
|
Reportable Segments
|
||||||||||||||||||
|
Private Client
|
|
Asset Management
|
|
Capital Markets
|
|
Corporate/Other
|
|
Total
|
||||||||||
Revenues from contracts with customers:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commissions from sales and trading
|
$
|
79,371
|
|
|
$
|
—
|
|
|
$
|
65,019
|
|
|
$
|
77
|
|
|
$
|
144,467
|
|
Mutual fund income
|
21,268
|
|
|
505
|
|
|
7
|
|
|
10
|
|
|
21,790
|
|
|||||
Advisory fees
|
119,910
|
|
|
34,838
|
|
|
54
|
|
|
16
|
|
|
154,818
|
|
|||||
Investment banking - capital markets
|
7,839
|
|
|
—
|
|
|
30,592
|
|
|
—
|
|
|
38,431
|
|
|||||
Investment banking - advisory
|
—
|
|
|
—
|
|
|
17,683
|
|
|
—
|
|
|
17,683
|
|
|||||
Bank deposit sweep income
|
54,150
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
54,150
|
|
|||||
Other
|
7,705
|
|
|
6
|
|
|
432
|
|
|
(46
|
)
|
|
8,097
|
|
|||||
Total revenues from contracts with customers
|
290,243
|
|
|
35,349
|
|
|
113,787
|
|
|
57
|
|
|
439,436
|
|
|||||
Other sources of revenue:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest
|
18,351
|
|
|
1
|
|
|
6,468
|
|
|
463
|
|
|
25,283
|
|
|||||
Principal transactions, net
|
132
|
|
|
—
|
|
|
9,381
|
|
|
(387
|
)
|
|
9,126
|
|
|||||
Other
|
1,921
|
|
|
—
|
|
|
99
|
|
|
1,221
|
|
|
3,241
|
|
|||||
Total other sources of revenue
|
20,404
|
|
|
1
|
|
|
15,948
|
|
|
1,297
|
|
|
37,650
|
|
|||||
Total revenue
|
$
|
310,647
|
|
|
$
|
35,350
|
|
|
$
|
129,735
|
|
|
$
|
1,354
|
|
|
$
|
477,086
|
|
OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
|
(1)
|
Commission recorded on trade date but not yet settled.
|
(2)
|
Mutual fund income earned but not yet received.
|
(3)
|
Management and performance fees earned but not yet received.
|
(4)
|
Fees earned from FDIC-insured bank deposit program but not yet received.
|
(5)
|
Underwriting revenue and advisory fee earned but not yet received.
|
OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
|
(Expressed in thousands, except number of shares and per share amounts)
|
|
|
|
|
|
|
|
||||||||
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Basic weighted average number of shares outstanding
|
13,248,812
|
|
|
13,260,855
|
|
|
13,244,245
|
|
|
13,329,670
|
|
||||
Net dilutive effect of share-based awards, treasury method
(1)
|
801,761
|
|
|
—
|
|
|
761,311
|
|
|
—
|
|
||||
Diluted weighted average number of shares outstanding
|
14,050,573
|
|
|
13,260,855
|
|
|
14,005,556
|
|
|
13,329,670
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income (loss) from continuing operations
|
$
|
8,839
|
|
|
$
|
(1,363
|
)
|
|
$
|
15,548
|
|
|
$
|
(6,701
|
)
|
Net income from discontinued operations
|
—
|
|
|
53
|
|
|
—
|
|
|
640
|
|
||||
Net income (loss)
|
8,839
|
|
|
(1,310
|
)
|
|
15,548
|
|
|
(6,061
|
)
|
||||
Less net income (loss) attributable to non-controlling interest, net of tax
|
(16
|
)
|
|
9
|
|
|
(12
|
)
|
|
105
|
|
||||
Net income (loss) attributable to Oppenheimer Holdings Inc.
|
$
|
8,855
|
|
|
$
|
(1,319
|
)
|
|
$
|
15,560
|
|
|
$
|
(6,166
|
)
|
|
|
|
|
|
|
|
|
||||||||
Basic net income (loss) per share attributable to Oppenheimer Holdings Inc.
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
0.67
|
|
|
$
|
(0.10
|
)
|
|
$
|
1.17
|
|
|
$
|
(0.50
|
)
|
Discontinued operations
(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
0.04
|
|
||||
Net income (loss) per share
|
$
|
0.67
|
|
|
$
|
(0.10
|
)
|
|
$
|
1.17
|
|
|
$
|
(0.46
|
)
|
|
|
|
|
|
|
|
|
||||||||
Diluted net income (loss) per share attributable to Oppenheimer Holdings Inc.
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
0.63
|
|
|
$
|
(0.10
|
)
|
|
$
|
1.11
|
|
|
$
|
(0.50
|
)
|
Discontinued operations
(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
0.04
|
|
||||
Net income (loss) per share
|
$
|
0.63
|
|
|
$
|
(0.10
|
)
|
|
$
|
1.11
|
|
|
$
|
(0.46
|
)
|
(1)
|
For both the three and six months ended
June 30, 2018
, the diluted net income (loss) per share computation does not include the anti-dilutive effect of
4,050
shares of Class A Stock granted under share-based compensation arrangements (
1,336,424
shares for both the three and six months ended June 30,
2017
).
|
(2)
|
Represents net income from discontinued operations less net income attributable to non-controlling interest, net of tax divided by weighted average number of shares outstanding.
|
(Expressed in thousands)
|
|
|
|
||||
|
As of
|
||||||
|
June 30, 2018
|
|
December 31, 2017
|
||||
Receivable from brokers, dealers and clearing organizations consists of:
|
|
|
|
||||
Securities borrowed
|
$
|
122,238
|
|
|
$
|
132,368
|
|
Receivable from brokers
|
31,962
|
|
|
19,298
|
|
||
Securities failed to deliver
|
24,227
|
|
|
9,442
|
|
||
Clearing organizations
|
23,459
|
|
|
24,361
|
|
||
Other
|
2,641
|
|
|
1,646
|
|
||
Total
|
$
|
204,527
|
|
|
$
|
187,115
|
|
Payable to brokers, dealers and clearing organizations consists of:
|
|
|
|
||||
Securities loaned
|
$
|
199,598
|
|
|
$
|
180,270
|
|
Payable to brokers
|
18,984
|
|
|
1,567
|
|
||
Securities failed to receive
|
16,894
|
|
|
17,559
|
|
||
Other
|
47,066
|
|
|
12,087
|
|
||
Total
|
$
|
282,542
|
|
|
$
|
211,483
|
|
OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
|
OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
|
OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
|
(1)
|
Principal amount represents the par value of the ARS and is included in securities owned on the condensed consolidated balance sheet as of
June 30, 2018
. The valuation adjustment amount is included as a reduction to securities owned on the condensed consolidated balance sheet as of
June 30, 2018
.
|
(2)
|
Derived by applying a multiple to a spread between
110%
to
150%
to the U.S. Treasury rate of
2.58%
.
|
(3)
|
Based on current yields for ARS positions owned.
|
(4)
|
ARS issuer announced tender offer at 94% of par. Included in Level 2 of the fair value hierarchy.
|
(5)
|
Derived by applying the sum of the spread of
1.20%
to the U.S. Treasury rate of
2.76%
.
|
(6)
|
Principal amount represents the present value of the ARS par value that the Company is committed to purchase at a future date. This principal amount is presented as an off-balance sheet item. The valuation adjustment amount is included in accounts payable and other liabilities on the condensed consolidated balance sheet as of
June 30, 2018
.
|
OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
|
•
|
The impact of a
25
basis point increase in the discount rate at
June 30, 2018
would result in a decrease in the fair value of
$493,000
(does not consider a corresponding reduction in duration as discussed above).
|
•
|
The impact of a
50
basis point increase in the discount rate at
June 30, 2018
would result in a decrease in the fair value of
$982,000
(does not consider a corresponding reduction in duration as discussed above).
|
(1)
|
Includes investments in hedge funds and hedge fund of funds that pursue long/short, event-driven, and activist strategies. Each hedge fund has various restrictions regarding redemption; no investment is locked-up for a period greater than one year.
|
(2)
|
Includes private equity funds and private equity fund of funds with a focus on diversified portfolios, real estate and global natural resources. Due to the illiquid nature of these funds, investors are not permitted to make withdrawals without the consent of the general partner. The lock-up period of the private equity funds can extend to
10
years.
|
OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
|
(Expressed in thousands)
|
|
|
|
|
|
|
|
||||||||
|
Fair Value Measurements as of June 30, 2018
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
10,500
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,500
|
|
Deposits with clearing organizations
|
31,135
|
|
|
—
|
|
|
—
|
|
|
31,135
|
|
||||
Securities owned:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
690,988
|
|
|
—
|
|
|
—
|
|
|
690,988
|
|
||||
U.S. Agency securities
|
8,541
|
|
|
7,906
|
|
|
—
|
|
|
16,447
|
|
||||
Sovereign obligations
|
—
|
|
|
204
|
|
|
—
|
|
|
204
|
|
||||
Corporate debt and other obligations
|
—
|
|
|
24,813
|
|
|
—
|
|
|
24,813
|
|
||||
Mortgage and other asset-backed securities
|
—
|
|
|
6,870
|
|
|
—
|
|
|
6,870
|
|
||||
Municipal obligations
|
—
|
|
|
116,612
|
|
|
—
|
|
|
116,612
|
|
||||
Convertible bonds
|
—
|
|
|
41,135
|
|
|
—
|
|
|
41,135
|
|
||||
Corporate equities
|
33,112
|
|
|
—
|
|
|
—
|
|
|
33,112
|
|
||||
Auction rate securities
|
—
|
|
|
17,602
|
|
|
72,621
|
|
|
90,223
|
|
||||
Securities owned, at fair value
|
732,641
|
|
|
215,142
|
|
|
72,621
|
|
|
1,020,404
|
|
||||
Investments
(1)
|
—
|
|
|
—
|
|
|
164
|
|
|
164
|
|
||||
Derivative contracts:
|
|
|
|
|
|
|
|
||||||||
TBAs
|
—
|
|
|
2,815
|
|
|
—
|
|
|
2,815
|
|
||||
Total
|
$
|
774,276
|
|
|
$
|
217,957
|
|
|
$
|
72,785
|
|
|
$
|
1,065,018
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Securities sold but not yet purchased:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
$
|
115,465
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
115,465
|
|
U.S. Agency securities
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
||||
Corporate debt and other obligations
|
—
|
|
|
5,289
|
|
|
—
|
|
|
5,289
|
|
||||
Mortgage and other asset-backed securities
|
—
|
|
|
6,808
|
|
|
—
|
|
|
6,808
|
|
||||
Convertible bonds
|
—
|
|
|
7,496
|
|
|
—
|
|
|
7,496
|
|
||||
Corporate equities
|
26,978
|
|
|
—
|
|
|
—
|
|
|
26,978
|
|
||||
Securities sold but not yet purchased, at fair value
|
142,443
|
|
|
19,599
|
|
|
—
|
|
|
162,042
|
|
||||
Derivative contracts:
|
|
|
|
|
|
|
|
||||||||
Futures
|
942
|
|
|
—
|
|
|
—
|
|
|
942
|
|
||||
Foreign exchange forward contracts
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
||||
TBAs
|
—
|
|
|
2,715
|
|
|
—
|
|
|
2,715
|
|
||||
ARS purchase commitments
|
—
|
|
|
91
|
|
|
131
|
|
|
222
|
|
||||
Derivative contracts, total
|
947
|
|
|
2,806
|
|
|
131
|
|
|
3,884
|
|
||||
Total
|
$
|
143,390
|
|
|
$
|
22,405
|
|
|
$
|
131
|
|
|
$
|
165,926
|
|
(1)
|
Included in other assets on the condensed consolidated balance sheet.
|
(Expressed in thousands)
|
|
|
|
|
|
|
|
||||||||
|
Fair Value Measurements as of December 31, 2017
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
10,490
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,490
|
|
Deposits with clearing organizations
|
34,293
|
|
|
—
|
|
|
—
|
|
|
34,293
|
|
||||
Securities owned:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
640,337
|
|
|
—
|
|
|
—
|
|
|
640,337
|
|
||||
U.S. Agency securities
|
3,011
|
|
|
6,894
|
|
|
—
|
|
|
9,905
|
|
||||
Sovereign obligations
|
—
|
|
|
608
|
|
|
—
|
|
|
608
|
|
||||
Corporate debt and other obligations
|
—
|
|
|
12,538
|
|
|
—
|
|
|
12,538
|
|
||||
Mortgage and other asset-backed securities
|
—
|
|
|
4,037
|
|
|
—
|
|
|
4,037
|
|
||||
Municipal obligations
|
—
|
|
|
89,618
|
|
|
35
|
|
|
89,653
|
|
||||
Convertible bonds
|
—
|
|
|
23,216
|
|
|
—
|
|
|
23,216
|
|
||||
Corporate equities
|
34,067
|
|
|
—
|
|
|
—
|
|
|
34,067
|
|
||||
Money markets
|
383
|
|
|
—
|
|
|
—
|
|
|
383
|
|
||||
Auction rate securities
|
—
|
|
|
24,455
|
|
|
87,398
|
|
|
111,853
|
|
||||
Securities owned, at fair value
|
677,798
|
|
|
161,366
|
|
|
87,433
|
|
|
926,597
|
|
||||
Investments
(1)
|
—
|
|
|
—
|
|
|
169
|
|
|
169
|
|
||||
Derivative contracts:
|
|
|
|
|
|
|
|
|
|
|
|
||||
TBAs
|
—
|
|
|
716
|
|
|
—
|
|
|
716
|
|
||||
Total
|
$
|
722,581
|
|
|
$
|
162,082
|
|
|
$
|
87,602
|
|
|
$
|
972,265
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Securities sold but not yet purchased:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
$
|
53,425
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
53,425
|
|
U.S. Agency securities
|
—
|
|
|
13
|
|
|
—
|
|
|
13
|
|
||||
Sovereign obligations
|
—
|
|
|
1,179
|
|
|
—
|
|
|
1,179
|
|
||||
Corporate debt and other obligations
|
—
|
|
|
4,357
|
|
|
—
|
|
|
4,357
|
|
||||
Mortgage and other asset-backed securities
|
—
|
|
|
10
|
|
|
—
|
|
|
10
|
|
||||
Convertible bonds
|
—
|
|
|
10,109
|
|
|
—
|
|
|
10,109
|
|
||||
Corporate equities
|
25,393
|
|
|
—
|
|
|
—
|
|
|
25,393
|
|
||||
Securities sold but not yet purchased, at fair value
|
78,818
|
|
|
15,668
|
|
|
—
|
|
|
94,486
|
|
||||
Derivative contracts:
|
|
|
|
|
|
|
|
||||||||
Futures
|
766
|
|
|
—
|
|
|
—
|
|
|
766
|
|
||||
TBAs
|
—
|
|
|
614
|
|
|
—
|
|
|
614
|
|
||||
ARS purchase commitments
|
—
|
|
|
—
|
|
|
8
|
|
|
8
|
|
||||
Derivative contracts, total
|
766
|
|
|
614
|
|
|
8
|
|
|
1,388
|
|
||||
Total
|
$
|
79,584
|
|
|
$
|
16,282
|
|
|
$
|
8
|
|
|
$
|
95,874
|
|
(1)
|
Included in other assets on the condensed consolidated balance sheet.
|
OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
|
(1)
|
Represents auction rate preferred securities, municipal auction rate securities and student loan auction rate securities that failed in the auction rate market.
|
(2)
|
Represents the difference in principal and fair value for auction rate securities purchase commitments outstanding at the end of the period.
|
(3)
|
Included in principal transactions in the condensed consolidated statement of operations, except for gains (losses) from investments which are included in other income in the condensed consolidated statement of operations.
|
(4)
|
Unrealized gains (losses) are attributable to assets or liabilities that are still held at the reporting date.
|
(Expressed in thousands)
|
|||||||||||||||||||||||
|
Level 3 Assets and Liabilities
|
||||||||||||||||||||||
|
For the Three Months Ended June 30, 2017
|
||||||||||||||||||||||
|
Beginning
Balance
|
|
Total Realized
and Unrealized
Gains
(Losses)
(3)(4)
|
|
Purchases
and Issuances
|
|
Sales and Settlements
|
|
Transfers
In (Out)
|
|
Ending
Balance
|
||||||||||||
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Municipal obligations
|
$
|
36
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
36
|
|
Auction rate securities
(1)
|
89,743
|
|
|
502
|
|
|
17,050
|
|
|
(125
|
)
|
|
—
|
|
|
107,170
|
|
||||||
Investments
|
164
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
168
|
|
||||||
ARS purchase commitments
(2)
|
878
|
|
|
(878
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
ARS purchase commitments
(2)
|
359
|
|
|
105
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
254
|
|
(1)
|
Represents auction rate preferred securities, municipal auction rate securities and student loan auction rate securities that failed in the auction rate market.
|
(2)
|
Represents the difference in principal and fair value for auction rate securities purchase commitments outstanding at the end of the period.
|
(3)
|
Included in principal transactions in the condensed consolidated statement of operations, except for gains (losses) from investments which are included in other income in the condensed consolidated statement of operations.
|
(4)
|
Unrealized gains (losses) are attributable to assets or liabilities that are still held at the reporting date.
|
(Expressed in thousands)
|
|||||||||||||||||||||||
|
Level 3 Assets and Liabilities
|
||||||||||||||||||||||
|
For the Six Months Ended June 30, 2018
|
||||||||||||||||||||||
|
Beginning
Balance
|
|
Total Realized
and Unrealized
Gains
(Losses)
(3)(4)
|
|
Purchases
and Issuances
|
|
Sales and Settlements
|
|
Transfers
In (Out)
|
|
Ending
Balance
|
||||||||||||
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Municipal obligations
|
$
|
35
|
|
|
$
|
14
|
|
|
$
|
76
|
|
|
$
|
(125
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Auction rate securities
(1)
|
87,398
|
|
|
(55
|
)
|
|
4,100
|
|
|
(1,220
|
)
|
|
(17,602
|
)
|
|
72,621
|
|
||||||
Investments
|
169
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
164
|
|
||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
ARS purchase commitments
(2)
|
8
|
|
|
(214
|
)
|
|
—
|
|
|
—
|
|
|
91
|
|
|
131
|
|
(1)
|
Represents auction rate preferred securities, municipal auction rate securities and student loan auction rate securities that failed in the auction rate market.
|
(2)
|
Represents the difference in principal and fair value for auction rate securities purchase commitments outstanding at the end of the period.
|
(3)
|
Included in principal transactions in the condensed consolidated statement of operations, except for gains (losses) from investments which are included in other income in the condensed consolidated statement of operations.
|
(4)
|
Unrealized gains (losses) are attributable to assets or liabilities that are still held at the reporting date.
|
(Expressed in thousands)
|
|||||||||||||||||||||||
|
Level 3 Assets and Liabilities
|
||||||||||||||||||||||
|
For the Six Months Ended June 30, 2017
|
||||||||||||||||||||||
|
Beginning
Balance
|
|
Total Realized
and Unrealized
Gains
(Losses)
(3)(4)
|
|
Purchases
and Issuances
|
|
Sales and Settlements
|
|
Transfers
In (Out)
|
|
Ending
Balance
|
||||||||||||
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Municipal obligations
|
$
|
44
|
|
|
$
|
(8
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
36
|
|
Auction rate securities
(1)
|
84,926
|
|
|
1,144
|
|
|
22,050
|
|
|
(950
|
)
|
|
—
|
|
|
107,170
|
|
||||||
Investments
|
158
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
168
|
|
||||||
ARS purchase commitments
(2)
|
849
|
|
|
(849
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
ARS purchase commitments
(2)
|
645
|
|
|
391
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
254
|
|
(1)
|
Represents auction rate preferred securities, municipal auction rate securities and student loan auction rate securities that failed in the auction rate market.
|
(2)
|
Represents the difference in principal and fair value for auction rate securities purchase commitments outstanding at the end of the period.
|
(3)
|
Included in principal transactions in the condensed consolidated statement of operations, except for gains (losses) from investments which are included in other income in the condensed consolidated statement of operations.
|
(4)
|
Unrealized gains (losses) are attributable to assets or liabilities that are still held at the reporting date.
|
OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
|
(Expressed in thousands)
|
|
|
Fair Value Measurement: Assets
|
||||||||||||||||
|
Carrying Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||
Cash
|
$
|
28,461
|
|
|
$
|
28,461
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
28,461
|
|
Deposits with clearing organization
|
25,729
|
|
|
25,729
|
|
|
—
|
|
|
—
|
|
|
25,729
|
|
|||||
Receivable from brokers, dealers and clearing organizations:
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities borrowed
|
122,238
|
|
|
—
|
|
|
122,238
|
|
|
—
|
|
|
122,238
|
|
|||||
Receivables from brokers
|
31,962
|
|
|
—
|
|
|
31,962
|
|
|
—
|
|
|
31,962
|
|
|||||
Securities failed to deliver
|
24,227
|
|
|
—
|
|
|
24,227
|
|
|
—
|
|
|
24,227
|
|
|||||
Clearing organizations
|
23,459
|
|
|
—
|
|
|
23,459
|
|
|
—
|
|
|
23,459
|
|
|||||
Other
|
1,603
|
|
|
—
|
|
|
1,603
|
|
|
—
|
|
|
1,603
|
|
|||||
|
203,489
|
|
|
—
|
|
|
203,489
|
|
|
—
|
|
|
203,489
|
|
|||||
Receivable from customers
|
835,708
|
|
|
—
|
|
|
835,708
|
|
|
—
|
|
|
835,708
|
|
|||||
Securities purchased under agreements to resell
|
6,738
|
|
|
—
|
|
|
6,738
|
|
|
—
|
|
|
6,738
|
|
|||||
Notes receivable, net
|
42,410
|
|
|
—
|
|
|
42,410
|
|
|
—
|
|
|
42,410
|
|
|||||
Investments
(1)
|
65,601
|
|
|
—
|
|
|
65,601
|
|
|
—
|
|
|
65,601
|
|
(1)
|
Included in other assets on the condensed consolidated balance sheet.
|
(Expressed in thousands)
|
|
|
Fair Value Measurement: Liabilities
|
||||||||||||||||
|
Carrying Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||
Drafts payable
|
$
|
21,632
|
|
|
$
|
21,632
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
21,632
|
|
Bank call loans
|
107,500
|
|
|
—
|
|
|
107,500
|
|
|
—
|
|
|
107,500
|
|
|||||
Payables to brokers, dealers and clearing organizations:
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities loaned
|
199,598
|
|
|
—
|
|
|
199,598
|
|
|
—
|
|
|
199,598
|
|
|||||
Payable to brokers
|
18,984
|
|
|
—
|
|
|
18,984
|
|
|
—
|
|
|
18,984
|
|
|||||
Securities failed to receive
|
16,894
|
|
|
—
|
|
|
16,894
|
|
|
—
|
|
|
16,894
|
|
|||||
Other
|
45,186
|
|
|
—
|
|
|
45,186
|
|
|
—
|
|
|
45,186
|
|
|||||
|
280,662
|
|
|
—
|
|
|
280,662
|
|
|
—
|
|
|
280,662
|
|
|||||
Payables to customers
|
373,664
|
|
|
—
|
|
|
373,664
|
|
|
—
|
|
|
373,664
|
|
|||||
Securities sold under agreements to repurchase
|
599,151
|
|
|
—
|
|
|
599,151
|
|
|
—
|
|
|
599,151
|
|
|||||
Senior secured notes
|
200,000
|
|
|
—
|
|
|
204,174
|
|
|
—
|
|
|
204,174
|
|
(Expressed in thousands)
|
|
|
Fair Value Measurement: Assets
|
||||||||||||||||
|
Carrying Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||
Cash
|
$
|
37,664
|
|
|
$
|
37,664
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
37,664
|
|
Deposits with clearing organization
|
7,929
|
|
|
7,929
|
|
|
—
|
|
|
—
|
|
|
7,929
|
|
|||||
Receivable from brokers, dealers and clearing organizations:
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities borrowed
|
132,368
|
|
|
—
|
|
|
132,368
|
|
|
—
|
|
|
132,368
|
|
|||||
Receivables from brokers
|
19,298
|
|
|
—
|
|
|
19,298
|
|
|
—
|
|
|
19,298
|
|
|||||
Securities failed to deliver
|
9,442
|
|
|
—
|
|
|
9,442
|
|
|
—
|
|
|
9,442
|
|
|||||
Clearing organizations
|
24,361
|
|
|
—
|
|
|
24,361
|
|
|
—
|
|
|
24,361
|
|
|||||
Other
|
930
|
|
|
—
|
|
|
930
|
|
|
—
|
|
|
930
|
|
|||||
|
186,399
|
|
|
—
|
|
|
186,399
|
|
|
—
|
|
|
186,399
|
|
|||||
Receivable from customers
|
848,226
|
|
|
—
|
|
|
848,226
|
|
|
—
|
|
|
848,226
|
|
|||||
Securities purchased under agreements to resell
|
658
|
|
|
—
|
|
|
658
|
|
|
—
|
|
|
658
|
|
|||||
Notes receivable, net
|
40,520
|
|
|
—
|
|
|
40,520
|
|
|
—
|
|
|
40,520
|
|
|||||
Investments
(1)
|
65,404
|
|
|
—
|
|
|
65,404
|
|
|
—
|
|
|
65,404
|
|
(1)
|
Included in other assets on the condensed consolidated balance sheet.
|
(Expressed in thousands)
|
|
|
Fair Value Measurement: Liabilities
|
||||||||||||||||
|
Carrying Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||
Drafts payable
|
$
|
42,212
|
|
|
$
|
42,212
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
42,212
|
|
Bank call loans
|
118,300
|
|
|
—
|
|
|
118,300
|
|
|
—
|
|
|
118,300
|
|
|||||
Payables to brokers, dealers and clearing organizations:
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities loaned
|
180,270
|
|
|
—
|
|
|
180,270
|
|
|
—
|
|
|
180,270
|
|
|||||
Payable to brokers
|
1,567
|
|
|
—
|
|
|
1,567
|
|
|
—
|
|
|
1,567
|
|
|||||
Securities failed to receive
|
17,559
|
|
|
—
|
|
|
17,559
|
|
|
—
|
|
|
17,559
|
|
|||||
Other
|
10,707
|
|
|
—
|
|
|
10,707
|
|
|
—
|
|
|
10,707
|
|
|||||
|
210,103
|
|
|
—
|
|
|
210,103
|
|
|
—
|
|
|
210,103
|
|
|||||
Payables to customers
|
385,907
|
|
|
—
|
|
|
385,907
|
|
|
—
|
|
|
385,907
|
|
|||||
Securities sold under agreements to repurchase
|
586,478
|
|
|
—
|
|
|
586,478
|
|
|
—
|
|
|
586,478
|
|
|||||
Senior secured notes
|
200,000
|
|
|
—
|
|
|
206,380
|
|
|
—
|
|
|
206,380
|
|
OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
|
(Expressed in thousands)
|
|
|
|
|
|
||||
|
Fair Value of Derivative Instruments as of June 30, 2018
|
||||||||
|
Description
|
|
Notional
|
|
Fair Value
|
||||
Assets:
|
|
|
|
|
|
||||
Derivatives not designated as hedging instruments
(1)
|
|
|
|
|
|
||||
Other contracts
|
TBAs
|
|
$
|
821,000
|
|
|
$
|
1,777
|
|
|
Other TBAs
(2)
|
|
31,366
|
|
|
1,038
|
|
||
|
|
|
$
|
852,366
|
|
|
$
|
2,815
|
|
Liabilities:
|
|
|
|
|
|
||||
Derivatives not designated as hedging instruments
(1)
|
|
|
|
|
|
||||
Commodity contracts
|
Futures
|
|
$
|
4,981,000
|
|
|
$
|
942
|
|
Other contracts
|
Foreign exchange forward contracts
|
|
400
|
|
|
5
|
|
||
|
TBAs
|
|
821,000
|
|
|
1,749
|
|
||
|
Other TBAs
(2)
|
|
31,366
|
|
|
966
|
|
||
|
ARS purchase commitments
|
|
12,162
|
|
|
222
|
|
||
|
|
|
$
|
5,845,928
|
|
|
$
|
3,884
|
|
(1)
|
See "Derivative Instruments and Hedging Activities" above for description of derivative financial instruments. Such derivative instruments are not subject to master netting agreements, thus the related amounts are not offset.
|
(2)
|
Represents TBA purchase and sale contracts related to the legacy OMHHF business.
|
(Expressed in thousands)
|
|
|
|
|
|
||||
|
Fair Value of Derivative Instruments as of December 31, 2017
|
||||||||
|
Description
|
|
Notional
|
|
Fair Value
|
||||
Assets:
|
|
|
|
|
|
||||
Derivatives not designated as hedging instruments
(1)
|
|
|
|
|
|
||||
Other contracts
|
TBAs
|
|
$
|
26,000
|
|
|
$
|
22
|
|
|
Other TBAs
(2)
|
|
39,576
|
|
|
694
|
|
||
|
|
|
$
|
65,576
|
|
|
$
|
716
|
|
Liabilities:
|
|
|
|
|
|
||||
Derivatives not designated as hedging instruments
(1)
|
|
|
|
|
|
||||
Commodity contracts
|
Futures
|
|
$
|
5,844,000
|
|
|
$
|
766
|
|
Other contracts
|
TBAs
|
|
26,000
|
|
|
22
|
|
||
|
Other TBAs
(2)
|
|
39,576
|
|
|
592
|
|
||
|
ARS purchase commitments
|
|
10,992
|
|
|
8
|
|
||
|
|
|
$
|
5,920,568
|
|
|
$
|
1,388
|
|
(1)
|
See "Derivative Instruments and Hedging Activities" above for a description of derivative financial instruments.
|
(2)
|
Represents TBA purchase and sale contracts related to the legacy OMHHF business.
|
(Expressed in thousands)
|
|
|
|
|
|
|
||
|
|
The Effect of Derivative Instruments in the Statement of Operations
|
||||||
|
|
For the Three Months Ended June 30, 2018
|
||||||
|
|
|
|
Recognized in Income on Derivatives
(pre-tax)
|
||||
Types
|
|
Description
|
|
Location
|
|
Net Gain (Loss)
|
||
Commodity contracts
|
|
Futures
|
|
Principal transactions revenue
|
|
$
|
322
|
|
Other contracts
|
|
Foreign exchange forward contracts
|
|
Other revenue
|
|
(5
|
)
|
|
Other contracts
|
|
TBAs
|
|
Principal transactions revenue
|
|
162
|
|
|
|
|
Other TBAs
|
|
Other revenue
|
|
72
|
|
|
|
|
ARS purchase commitments
|
|
Principal transactions revenue
|
|
(39
|
)
|
|
|
|
|
|
|
|
$
|
512
|
|
|
|
|
|
|
|
|
||
(Expressed in thousands)
|
|
|
|
|
|
|
||
|
|
The Effect of Derivative Instruments in the Statement of Operations
|
||||||
|
|
For the Three Months Ended June 30, 2017
|
||||||
|
|
|
|
Recognized in Income on Derivatives
(pre-tax)
|
||||
Types
|
|
Description
|
|
Location
|
|
Net Gain (Loss)
|
||
Commodity contracts
|
|
Futures
|
|
Principal transactions revenue
|
|
$
|
(8
|
)
|
Other contracts
|
|
Foreign exchange forward contracts
|
|
Other revenue
|
|
8
|
|
|
|
|
TBAs
|
|
Principal transactions revenue
|
|
204
|
|
|
|
|
Other TBAs
|
|
Other revenue
|
|
191
|
|
|
|
|
ARS purchase commitments
|
|
Principal transactions revenue
|
|
(773
|
)
|
|
|
|
|
|
|
|
$
|
(378
|
)
|
(Expressed in thousands)
|
|
|
|
|
|
|
||
|
|
The Effect of Derivative Instruments in the Statement of Operations
|
||||||
|
|
For the Six Months Ended June 30, 2018
|
||||||
|
|
|
|
Recognized in Income on Derivatives
(pre-tax)
|
||||
Types
|
|
Description
|
|
Location
|
|
Net Gain (Loss)
|
||
Commodity contracts
|
|
Futures
|
|
Principal transactions revenue
|
|
$
|
1,351
|
|
Other contracts
|
|
Foreign exchange forward contracts
|
|
Other revenue
|
|
(5
|
)
|
|
Other contracts
|
|
TBAs
|
|
Principal transactions revenue
|
|
196
|
|
|
|
|
Other TBAs
|
|
Other revenue
|
|
147
|
|
|
|
|
ARS purchase commitments
|
|
Principal transactions revenue
|
|
(214
|
)
|
|
|
|
|
|
|
|
$
|
1,475
|
|
|
|
|
|
|
|
|
||
(Expressed in thousands)
|
|
|
|
|
|
|
||
|
|
The Effect of Derivative Instruments in the Statement of Operations
|
||||||
|
|
For the Six Months Ended June 30, 2017
|
||||||
|
|
|
|
Recognized in Income on Derivatives
(pre-tax)
|
||||
Types
|
|
Description
|
|
Location
|
|
Net Gain (Loss)
|
||
Commodity contracts
|
|
Futures
|
|
Principal transactions revenue
|
|
$
|
234
|
|
Other contracts
|
|
Foreign exchange forward contracts
|
|
Other revenue
|
|
12
|
|
|
|
|
TBAs
|
|
Principal transactions revenue
|
|
77
|
|
|
|
|
Other TBAs
|
|
Other revenue
|
|
511
|
|
|
|
|
ARS purchase commitments
|
|
Principal transactions revenue
|
|
(458
|
)
|
|
|
|
|
|
|
|
$
|
376
|
|
OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
|
As of June 30, 2018
|
|||||||||||||||||||||||
(Expressed in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
Gross Amounts Not Offset
on the Balance Sheet
|
|
|
||||||||||||||
|
Gross
Amounts of
Recognized
Assets
|
|
Gross
Amounts
Offset on the
Balance Sheet
|
|
Net Amounts
of Assets
Presented on
the Balance
Sheet
|
|
Financial
Instruments
|
|
Cash
Collateral
Received
|
|
Net Amount
|
||||||||||||
Reverse repurchase agreements
|
$
|
101,749
|
|
|
$
|
(95,011
|
)
|
|
$
|
6,738
|
|
|
$
|
(6,431
|
)
|
|
$
|
—
|
|
|
$
|
307
|
|
Securities borrowed
(1)
|
122,238
|
|
|
—
|
|
|
122,238
|
|
|
(117,374
|
)
|
|
—
|
|
|
4,864
|
|
||||||
Total
|
$
|
223,987
|
|
|
$
|
(95,011
|
)
|
|
$
|
128,976
|
|
|
$
|
(123,805
|
)
|
|
$
|
—
|
|
|
$
|
5,171
|
|
(1)
|
Included in receivable from brokers, dealers and clearing organizations on the condensed consolidated balance sheet.
|
|
|
|
|
|
|
|
Gross Amounts Not Offset
on the Balance Sheet
|
|
|
||||||||||||||
|
Gross
Amounts of
Recognized
Liabilities
|
|
Gross
Amounts
Offset on the Balance Sheet
|
|
Net Amounts
of Liabilities
Presented on
the Balance
Sheet
|
|
Financial
Instruments
|
|
Cash
Collateral
Pledged
|
|
Net Amount
|
||||||||||||
Repurchase agreements
|
$
|
694,162
|
|
|
$
|
(95,011
|
)
|
|
$
|
599,151
|
|
|
$
|
(597,168
|
)
|
|
$
|
—
|
|
|
$
|
1,983
|
|
Securities loaned
(2)
|
199,598
|
|
|
—
|
|
|
199,598
|
|
|
(188,954
|
)
|
|
—
|
|
|
10,644
|
|
||||||
Total
|
$
|
893,760
|
|
|
$
|
(95,011
|
)
|
|
$
|
798,749
|
|
|
$
|
(786,122
|
)
|
|
$
|
—
|
|
|
$
|
12,627
|
|
(2)
|
Included in payable to brokers, dealers and clearing organizations on the condensed consolidated balance sheet.
|
As of December 31, 2017
|
|||||||||||||||||||||||
(Expressed in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
Gross Amounts Not Offset
on the Balance Sheet |
|
|
||||||||||||||
|
Gross
Amounts of Recognized Assets |
|
Gross
Amounts Offset on the Balance Sheet |
|
Net Amounts
of Assets Presented on the Balance Sheet |
|
Financial
Instruments |
|
Cash
Collateral Received |
|
Net Amount
|
||||||||||||
Reverse repurchase agreements
|
$
|
200,712
|
|
|
$
|
(200,054
|
)
|
|
$
|
658
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
658
|
|
Securities borrowed
(1)
|
132,368
|
|
|
—
|
|
|
132,368
|
|
|
(128,575
|
)
|
|
—
|
|
|
3,793
|
|
||||||
Total
|
$
|
333,080
|
|
|
$
|
(200,054
|
)
|
|
$
|
133,026
|
|
|
$
|
(128,575
|
)
|
|
$
|
—
|
|
|
$
|
4,451
|
|
(1)
|
Included in receivable from brokers, dealers and clearing organizations on the condensed consolidated balance sheet.
|
|
|
|
|
|
|
|
Gross Amounts Not Offset
on the Balance Sheet
|
|
|
||||||||||||||
|
Gross
Amounts of
Recognized
Liabilities
|
|
Gross
Amounts
Offset on the Balance Sheet
|
|
Net Amounts
of Liabilities
Presented on
the Balance
Sheet
|
|
Financial
Instruments
|
|
Cash
Collateral
Pledged
|
|
Net Amount
|
||||||||||||
Repurchase agreements
|
$
|
786,532
|
|
|
$
|
(200,054
|
)
|
|
$
|
586,478
|
|
|
$
|
(585,289
|
)
|
|
$
|
—
|
|
|
$
|
1,189
|
|
Securities loaned
(2)
|
180,270
|
|
|
—
|
|
|
180,270
|
|
|
(170,176
|
)
|
|
—
|
|
|
10,094
|
|
||||||
Total
|
$
|
966,802
|
|
|
$
|
(200,054
|
)
|
|
$
|
766,748
|
|
|
$
|
(755,465
|
)
|
|
$
|
—
|
|
|
$
|
11,283
|
|
(2)
|
Included in payable to brokers, dealers and clearing organizations on the condensed consolidated balance sheet.
|
OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
|
OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
|
(1)
|
Represents the total assets of the VIEs and does not represent the Company's interests in the VIEs.
|
(2)
|
Represents the Company's interests in the VIEs and is included in other assets on the condensed consolidated balance sheet.
|
(Expressed in thousands)
|
|
|
|
|
|
|
|
|
|
||||||||||
|
As of December 31, 2017
|
||||||||||||||||||
|
Total
VIE Assets (1) |
|
Carrying Value of the
Company's Variable Interest |
|
Capital
Commitments |
|
Maximum
Exposure to Loss in Non-consolidated VIEs |
||||||||||||
|
Assets
(2)
|
|
Liabilities
|
|
|||||||||||||||
Hedge funds
|
$
|
328,172
|
|
|
$
|
713
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
713
|
|
Private equity funds
|
15,668
|
|
|
12
|
|
|
—
|
|
|
2
|
|
|
14
|
|
|||||
Total
|
$
|
343,840
|
|
|
$
|
725
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
727
|
|
(1)
|
Represents the total assets of the VIEs and does not represent the Company's interests in the VIEs.
|
(2)
|
Represents the Company's interests in the VIEs and is included in other assets on the condensed consolidated balance sheet.
|
(Expressed in thousands)
|
|
|
|
|
|
|
||||
Issued
|
|
Maturity Date
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
6.75% Senior Secured Notes
|
|
7/1/2022
|
|
$
|
200,000
|
|
|
$
|
200,000
|
|
Unamortized Debt Issuance Cost
|
|
|
|
(1,034
|
)
|
|
(1,163
|
)
|
||
|
|
|
|
$
|
198,966
|
|
|
$
|
198,837
|
|
•
|
it is less than
$20 million
in any fiscal year; or
|
•
|
when combined with all other Restricted Payments (as defined in the indenture governing the Notes) that rely upon this exception, it does not exceed
$10 million
.
|
OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
Class A Stock outstanding, beginning of period
|
13,141,103
|
|
|
13,182,332
|
|
|
13,139,203
|
|
|
13,261,095
|
|
Issued pursuant to shared-based compensation plans
|
15,250
|
|
|
—
|
|
|
17,150
|
|
|
179,020
|
|
Repurchased and canceled pursuant to the stock buy-back
|
—
|
|
|
(49,557
|
)
|
|
—
|
|
|
(307,340
|
)
|
Class A Stock outstanding, end of period
|
13,156,353
|
|
|
13,132,775
|
|
|
13,156,353
|
|
|
13,132,775
|
|
OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
|
OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
|
OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
|
OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
|
13.
|
Regulatory requirements
|
•
|
Common Equity Tier 1 ratio
18.20%
(required
4.5%
);
|
•
|
Tier 1 Capital ratio
18.20%
(required
6.0%
); and
|
•
|
Total Capital ratio
18.76%
(required
8.0%
).
|
OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
|
(1)
|
Clients investing in the OAM advisory program are charged fees based on the value of AUM. Advisory fees are allocated
10.0%
to the Asset Management and
90.0%
to the Private Client segments.
|
(Expressed in thousands)
|
|
|
|
|
|
|
|
||||||||
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Americas
|
$
|
234,471
|
|
|
$
|
204,052
|
|
|
$
|
460,083
|
|
|
$
|
407,715
|
|
Europe/Middle East
|
7,222
|
|
|
10,904
|
|
|
14,745
|
|
|
19,364
|
|
||||
Asia
|
863
|
|
|
928
|
|
|
2,258
|
|
|
2,066
|
|
||||
Total
|
$
|
242,556
|
|
|
$
|
215,884
|
|
|
$
|
477,086
|
|
|
$
|
429,145
|
|
(Expressed in thousands)
|
Parent
|
|
Guarantor
subsidiaries
|
|
Non-guarantor
subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
668
|
|
|
$
|
4,588
|
|
|
$
|
33,705
|
|
|
$
|
—
|
|
|
$
|
38,961
|
|
Deposits with clearing organizations
|
—
|
|
|
—
|
|
|
56,864
|
|
|
—
|
|
|
56,864
|
|
|||||
Receivable from brokers, dealers and clearing organizations
|
—
|
|
|
—
|
|
|
204,527
|
|
|
—
|
|
|
204,527
|
|
|||||
Receivable from customers, net of allowance for credit losses of $848
|
—
|
|
|
—
|
|
|
835,708
|
|
|
—
|
|
|
835,708
|
|
|||||
Income tax receivable
|
46,865
|
|
|
24,904
|
|
|
—
|
|
|
(68,951
|
)
|
|
2,818
|
|
|||||
Securities purchased under agreements to resell
|
—
|
|
|
—
|
|
|
6,738
|
|
|
—
|
|
|
6,738
|
|
|||||
Securities owned, including amounts pledged of $692,286, at fair value
|
—
|
|
|
1,369
|
|
|
1,019,035
|
|
|
—
|
|
|
1,020,404
|
|
|||||
Notes receivable, net of accumulated amortization and allowance for uncollectibles of $24,788 and $8,051, respectively
|
—
|
|
|
—
|
|
|
42,410
|
|
|
—
|
|
|
42,410
|
|
|||||
Furniture, equipment and leasehold improvements, net of accumulated depreciation of $85,815
|
—
|
|
|
20,883
|
|
|
7,111
|
|
|
—
|
|
|
27,994
|
|
|||||
Subordinated loan receivable
|
—
|
|
|
112,558
|
|
|
—
|
|
|
(112,558
|
)
|
|
—
|
|
|||||
Intangible assets
|
—
|
|
|
400
|
|
|
31,700
|
|
|
—
|
|
|
32,100
|
|
|||||
Goodwill
|
—
|
|
|
—
|
|
|
137,889
|
|
|
—
|
|
|
137,889
|
|
|||||
Other assets
|
120
|
|
|
2,580
|
|
|
112,167
|
|
|
—
|
|
|
114,867
|
|
|||||
Deferred tax assets
|
122
|
|
|
118
|
|
|
18,641
|
|
|
(18,881
|
)
|
|
—
|
|
|||||
Investment in subsidiaries
|
643,205
|
|
|
526,774
|
|
|
—
|
|
|
(1,169,979
|
)
|
|
—
|
|
|||||
Intercompany receivables
|
48,843
|
|
|
49,627
|
|
|
—
|
|
|
(98,470
|
)
|
|
—
|
|
|||||
Total assets
|
$
|
739,823
|
|
|
$
|
743,801
|
|
|
$
|
2,506,495
|
|
|
$
|
(1,468,839
|
)
|
|
$
|
2,521,280
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Drafts payable
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
21,632
|
|
|
$
|
—
|
|
|
$
|
21,632
|
|
Bank call loans
|
—
|
|
|
—
|
|
|
107,500
|
|
|
—
|
|
|
107,500
|
|
|||||
Payable to brokers, dealers and clearing organizations
|
—
|
|
|
—
|
|
|
282,542
|
|
|
—
|
|
|
282,542
|
|
|||||
Payable to customers
|
—
|
|
|
—
|
|
|
373,664
|
|
|
—
|
|
|
373,664
|
|
|||||
Securities sold under agreements to repurchase
|
—
|
|
|
—
|
|
|
599,151
|
|
|
—
|
|
|
599,151
|
|
|||||
Securities sold but not yet purchased, at fair value
|
—
|
|
|
—
|
|
|
162,042
|
|
|
—
|
|
|
162,042
|
|
|||||
Accrued compensation
|
—
|
|
|
—
|
|
|
128,985
|
|
|
—
|
|
|
128,985
|
|
|||||
Accounts payable and other liabilities
|
125
|
|
|
33,496
|
|
|
60,732
|
|
|
—
|
|
|
94,353
|
|
|||||
Income tax payable
|
2,440
|
|
|
22,189
|
|
|
44,322
|
|
|
(68,951
|
)
|
|
—
|
|
|||||
Senior secured notes, net of debt issuance cost of $1,034
|
198,966
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
198,966
|
|
|||||
Subordinated indebtedness
|
—
|
|
|
—
|
|
|
112,558
|
|
|
(112,558
|
)
|
|
—
|
|
|||||
Deferred tax liabilities
|
—
|
|
|
—
|
|
|
32,685
|
|
|
(18,881
|
)
|
|
13,804
|
|
|||||
Intercompany payables
|
—
|
|
|
28,141
|
|
|
70,329
|
|
|
(98,470
|
)
|
|
—
|
|
|||||
Total liabilities
|
201,531
|
|
|
83,826
|
|
|
1,996,142
|
|
|
(298,860
|
)
|
|
1,982,639
|
|
|||||
Stockholders' equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Stockholders' equity attributable to Oppenheimer Holdings Inc.
|
538,292
|
|
|
659,975
|
|
|
510,004
|
|
|
(1,169,979
|
)
|
|
538,292
|
|
|||||
Non-controlling interest
|
—
|
|
|
—
|
|
|
349
|
|
|
—
|
|
|
349
|
|
|||||
Total stockholders' equity
|
538,292
|
|
|
659,975
|
|
|
510,353
|
|
|
(1,169,979
|
)
|
|
538,641
|
|
|||||
Total liabilities and stockholders' equity
|
$
|
739,823
|
|
|
$
|
743,801
|
|
|
$
|
2,506,495
|
|
|
$
|
(1,468,839
|
)
|
|
$
|
2,521,280
|
|
(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
|
|
(Expressed in thousands)
|
Parent
|
|
Guarantor
subsidiaries
|
|
Non-guarantor
subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
REVENUES
|
|
|
|
|
|
|
|
|
|
||||||||||
Commissions
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
82,850
|
|
|
$
|
—
|
|
|
$
|
82,850
|
|
Advisory fees
|
—
|
|
|
—
|
|
|
77,589
|
|
|
(319
|
)
|
|
77,270
|
|
|||||
Investment banking
|
—
|
|
|
—
|
|
|
27,904
|
|
|
—
|
|
|
27,904
|
|
|||||
Bank deposit sweep income
|
—
|
|
|
—
|
|
|
28,853
|
|
|
—
|
|
|
28,853
|
|
|||||
Interest
|
3
|
|
|
2,060
|
|
|
13,070
|
|
|
(2,077
|
)
|
|
13,056
|
|
|||||
Principal transactions, net
|
—
|
|
|
—
|
|
|
6,409
|
|
|
(9
|
)
|
|
6,400
|
|
|||||
Other
|
—
|
|
|
95
|
|
|
6,222
|
|
|
(94
|
)
|
|
6,223
|
|
|||||
Total revenue
|
3
|
|
|
2,155
|
|
|
242,897
|
|
|
(2,499
|
)
|
|
242,556
|
|
|||||
EXPENSES
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and related expenses
|
522
|
|
|
—
|
|
|
151,349
|
|
|
—
|
|
|
151,871
|
|
|||||
Communications and technology
|
49
|
|
|
—
|
|
|
17,948
|
|
|
—
|
|
|
17,997
|
|
|||||
Occupancy and equipment costs
|
—
|
|
|
—
|
|
|
14,995
|
|
|
(94
|
)
|
|
14,901
|
|
|||||
Clearing and exchange fees
|
—
|
|
|
—
|
|
|
5,780
|
|
|
—
|
|
|
5,780
|
|
|||||
Interest
|
3,375
|
|
|
—
|
|
|
9,611
|
|
|
(2,077
|
)
|
|
10,909
|
|
|||||
Other
|
278
|
|
|
849
|
|
|
27,798
|
|
|
(328
|
)
|
|
28,597
|
|
|||||
Total expenses
|
4,224
|
|
|
849
|
|
|
227,481
|
|
|
(2,499
|
)
|
|
230,055
|
|
|||||
Income (loss) before income taxes
|
(4,221
|
)
|
|
1,306
|
|
|
15,416
|
|
|
—
|
|
|
12,501
|
|
|||||
Income taxes
|
(1,065
|
)
|
|
369
|
|
|
4,358
|
|
|
—
|
|
|
3,662
|
|
|||||
Net income (loss) from continuing operations
|
(3,156
|
)
|
|
937
|
|
|
11,058
|
|
|
—
|
|
|
8,839
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity in earnings of subsidiaries
|
12,011
|
|
|
11,074
|
|
|
—
|
|
|
(23,085
|
)
|
|
—
|
|
|||||
Net income
|
8,855
|
|
|
12,011
|
|
|
11,058
|
|
|
(23,085
|
)
|
|
8,839
|
|
|||||
Less net loss attributable to non-controlling interest, net of tax
|
—
|
|
|
—
|
|
|
(16
|
)
|
|
—
|
|
|
(16
|
)
|
|||||
Net income attributable to Oppenheimer Holdings Inc.
|
8,855
|
|
|
12,011
|
|
|
11,074
|
|
|
(23,085
|
)
|
|
8,855
|
|
|||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
(837
|
)
|
|
—
|
|
|
(837
|
)
|
|||||
Total comprehensive income
|
$
|
8,855
|
|
|
$
|
12,011
|
|
|
$
|
10,237
|
|
|
$
|
(23,085
|
)
|
|
$
|
8,018
|
|
(Expressed in thousands)
|
Parent
|
|
Guarantor
subsidiaries |
|
Non-guarantor
subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||
REVENUES
|
|
|
|
|
|
|
|
|
|
||||||||||
Commissions
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
83,852
|
|
|
$
|
—
|
|
|
$
|
83,852
|
|
Advisory fees
|
—
|
|
|
—
|
|
|
73,126
|
|
|
(343
|
)
|
|
72,783
|
|
|||||
Investment banking
|
—
|
|
|
—
|
|
|
18,386
|
|
|
(3,000
|
)
|
|
15,386
|
|
|||||
Bank deposit sweep income
|
—
|
|
|
—
|
|
|
17,720
|
|
|
—
|
|
|
17,720
|
|
|||||
Interest
|
—
|
|
|
2,559
|
|
|
12,845
|
|
|
(2,575
|
)
|
|
12,829
|
|
|||||
Principal transactions, net
|
—
|
|
|
9
|
|
|
5,293
|
|
|
—
|
|
|
5,302
|
|
|||||
Other
|
—
|
|
|
90
|
|
|
8,011
|
|
|
(89
|
)
|
|
8,012
|
|
|||||
Total revenue
|
—
|
|
|
2,658
|
|
|
219,233
|
|
|
(6,007
|
)
|
|
215,884
|
|
|||||
EXPENSES
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and related expenses
|
367
|
|
|
—
|
|
|
142,290
|
|
|
—
|
|
|
142,657
|
|
|||||
Communications and technology
|
49
|
|
|
—
|
|
|
18,350
|
|
|
—
|
|
|
18,399
|
|
|||||
Occupancy and equipment costs
|
—
|
|
|
—
|
|
|
15,250
|
|
|
(89
|
)
|
|
15,161
|
|
|||||
Clearing and exchange fees
|
—
|
|
|
—
|
|
|
5,916
|
|
|
—
|
|
|
5,916
|
|
|||||
Interest
|
3,709
|
|
|
—
|
|
|
5,720
|
|
|
(2,575
|
)
|
|
6,854
|
|
|||||
Other
|
3,922
|
|
|
195
|
|
|
27,760
|
|
|
(3,343
|
)
|
|
28,534
|
|
|||||
Total expenses
|
8,047
|
|
|
195
|
|
|
215,286
|
|
|
(6,007
|
)
|
|
217,521
|
|
|||||
Income (loss) before income taxes
|
(8,047
|
)
|
|
2,463
|
|
|
3,947
|
|
|
—
|
|
|
(1,637
|
)
|
|||||
Income taxes
|
(3,098
|
)
|
|
956
|
|
|
1,868
|
|
|
—
|
|
|
(274
|
)
|
|||||
Net income (loss) from continuing operations
|
(4,949
|
)
|
|
1,507
|
|
|
2,079
|
|
|
—
|
|
|
(1,363
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Discontinued operations
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from discontinued operations
|
—
|
|
|
—
|
|
|
89
|
|
|
—
|
|
|
89
|
|
|||||
Income taxes
|
—
|
|
|
—
|
|
|
36
|
|
|
—
|
|
|
36
|
|
|||||
Net income from discontinued operations
|
—
|
|
|
—
|
|
|
53
|
|
|
—
|
|
|
53
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity in earnings of subsidiaries
|
3,630
|
|
|
2,123
|
|
|
—
|
|
|
(5,753
|
)
|
|
—
|
|
|||||
Net income (loss)
|
(1,319
|
)
|
|
3,630
|
|
|
2,132
|
|
|
(5,753
|
)
|
|
(1,310
|
)
|
|||||
Less net income attributable to non-controlling interest, net of tax
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
9
|
|
|||||
Net income (loss) attributable to Oppenheimer Holdings Inc.
|
(1,319
|
)
|
|
3,630
|
|
|
2,123
|
|
|
(5,753
|
)
|
|
(1,319
|
)
|
|||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
780
|
|
|
—
|
|
|
780
|
|
|||||
Total comprehensive income (loss)
|
$
|
(1,319
|
)
|
|
$
|
3,630
|
|
|
$
|
2,903
|
|
|
$
|
(5,753
|
)
|
|
$
|
(539
|
)
|
(Expressed in thousands)
|
Parent
|
|
Guarantor
subsidiaries
|
|
Non-guarantor
subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
REVENUES
|
|
|
|
|
|
|
|
|
|
||||||||||
Commissions
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
166,257
|
|
|
$
|
—
|
|
|
$
|
166,257
|
|
Advisory fees
|
—
|
|
|
—
|
|
|
155,463
|
|
|
(645
|
)
|
|
154,818
|
|
|||||
Investment banking
|
—
|
|
|
—
|
|
|
56,114
|
|
|
—
|
|
|
56,114
|
|
|||||
Bank deposit sweep income
|
—
|
|
|
—
|
|
|
54,150
|
|
|
—
|
|
|
54,150
|
|
|||||
Interest
|
3
|
|
|
4,120
|
|
|
25,317
|
|
|
(4,157
|
)
|
|
25,283
|
|
|||||
Principal transactions, net
|
—
|
|
|
—
|
|
|
9,168
|
|
|
(42
|
)
|
|
9,126
|
|
|||||
Other
|
—
|
|
|
191
|
|
|
11,336
|
|
|
(189
|
)
|
|
11,338
|
|
|||||
Total revenue
|
3
|
|
|
4,311
|
|
|
477,805
|
|
|
(5,033
|
)
|
|
477,086
|
|
|||||
EXPENSES
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and related expenses
|
848
|
|
|
—
|
|
|
304,127
|
|
|
—
|
|
|
304,975
|
|
|||||
Communications and technology
|
88
|
|
|
—
|
|
|
36,597
|
|
|
—
|
|
|
36,685
|
|
|||||
Occupancy and equipment costs
|
—
|
|
|
—
|
|
|
30,518
|
|
|
(189
|
)
|
|
30,329
|
|
|||||
Clearing and exchange fees
|
—
|
|
|
—
|
|
|
11,876
|
|
|
—
|
|
|
11,876
|
|
|||||
Interest
|
6,750
|
|
|
—
|
|
|
17,279
|
|
|
(4,157
|
)
|
|
19,872
|
|
|||||
Other
|
665
|
|
|
1,102
|
|
|
50,143
|
|
|
(687
|
)
|
|
51,223
|
|
|||||
Total expenses
|
8,351
|
|
|
1,102
|
|
|
450,540
|
|
|
(5,033
|
)
|
|
454,960
|
|
|||||
Income (loss) before income taxes
|
(8,348
|
)
|
|
3,209
|
|
|
27,265
|
|
|
—
|
|
|
22,126
|
|
|||||
Income taxes
|
(2,105
|
)
|
|
633
|
|
|
8,050
|
|
|
—
|
|
|
6,578
|
|
|||||
Net income (loss) from continuing operations
|
(6,243
|
)
|
|
2,576
|
|
|
19,215
|
|
|
—
|
|
|
15,548
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity in earnings of subsidiaries
|
21,803
|
|
|
19,227
|
|
|
—
|
|
|
(41,030
|
)
|
|
—
|
|
|||||
Net income
|
15,560
|
|
|
21,803
|
|
|
19,215
|
|
|
(41,030
|
)
|
|
15,548
|
|
|||||
Less net loss attributable to non-controlling interest, net of tax
|
—
|
|
|
—
|
|
|
(12
|
)
|
|
—
|
|
|
(12
|
)
|
|||||
Net income attributable to Oppenheimer Holdings Inc.
|
15,560
|
|
|
21,803
|
|
|
19,227
|
|
|
(41,030
|
)
|
|
15,560
|
|
|||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
(979
|
)
|
|
—
|
|
|
(979
|
)
|
|||||
Total comprehensive income
|
$
|
15,560
|
|
|
$
|
21,803
|
|
|
$
|
18,248
|
|
|
$
|
(41,030
|
)
|
|
$
|
14,581
|
|
(Expressed in thousands)
|
Parent
|
|
Guarantor
subsidiaries |
|
Non-guarantor
subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||
REVENUES
|
|
|
|
|
|
|
|
|
|
||||||||||
Commissions
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
170,569
|
|
|
$
|
—
|
|
|
$
|
170,569
|
|
Advisory fees
|
—
|
|
|
—
|
|
|
142,855
|
|
|
(663
|
)
|
|
142,192
|
|
|||||
Investment banking
|
—
|
|
|
—
|
|
|
36,407
|
|
|
(3,000
|
)
|
|
33,407
|
|
|||||
Bank deposit sweep income
|
—
|
|
|
—
|
|
|
31,846
|
|
|
—
|
|
|
31,846
|
|
|||||
Interest
|
—
|
|
|
5,138
|
|
|
23,407
|
|
|
(5,151
|
)
|
|
23,394
|
|
|||||
Principal transactions, net
|
—
|
|
|
15
|
|
|
10,660
|
|
|
—
|
|
|
10,675
|
|
|||||
Other
|
—
|
|
|
178
|
|
|
17,061
|
|
|
(177
|
)
|
|
17,062
|
|
|||||
Total revenue
|
—
|
|
|
5,331
|
|
|
432,805
|
|
|
(8,991
|
)
|
|
429,145
|
|
|||||
EXPENSES
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and related expenses
|
705
|
|
|
—
|
|
|
285,830
|
|
|
—
|
|
|
286,535
|
|
|||||
Communications and technology
|
79
|
|
|
—
|
|
|
36,026
|
|
|
—
|
|
|
36,105
|
|
|||||
Occupancy and equipment costs
|
—
|
|
|
—
|
|
|
30,610
|
|
|
(177
|
)
|
|
30,433
|
|
|||||
Clearing and exchange fees
|
—
|
|
|
—
|
|
|
11,770
|
|
|
—
|
|
|
11,770
|
|
|||||
Interest
|
6,990
|
|
|
—
|
|
|
10,371
|
|
|
(5,151
|
)
|
|
12,210
|
|
|||||
Other
|
4,249
|
|
|
267
|
|
|
59,901
|
|
|
(3,663
|
)
|
|
60,754
|
|
|||||
Total expenses
|
12,023
|
|
|
267
|
|
|
434,508
|
|
|
(8,991
|
)
|
|
437,807
|
|
|||||
Income (loss) before income taxes
|
(12,023
|
)
|
|
5,064
|
|
|
(1,703
|
)
|
|
—
|
|
|
(8,662
|
)
|
|||||
Income taxes
|
(4,626
|
)
|
|
1,876
|
|
|
789
|
|
|
—
|
|
|
(1,961
|
)
|
|||||
Net income (loss) from continuing operations
|
(7,397
|
)
|
|
3,188
|
|
|
(2,492
|
)
|
|
—
|
|
|
(6,701
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Discontinued operations
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from discontinued operations
|
—
|
|
|
—
|
|
|
1,065
|
|
|
—
|
|
|
1,065
|
|
|||||
Income taxes
|
—
|
|
|
—
|
|
|
425
|
|
|
—
|
|
|
425
|
|
|||||
Net income from discontinued operations
|
—
|
|
|
—
|
|
|
640
|
|
|
—
|
|
|
640
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity in earnings of subsidiaries
|
1,231
|
|
|
(1,957
|
)
|
|
—
|
|
|
726
|
|
|
—
|
|
|||||
Net income (loss)
|
(6,166
|
)
|
|
1,231
|
|
|
(1,852
|
)
|
|
726
|
|
|
(6,061
|
)
|
|||||
Less net income attributable to non-controlling interest, net of tax
|
—
|
|
|
—
|
|
|
105
|
|
|
—
|
|
|
105
|
|
|||||
Net income (loss) attributable to Oppenheimer Holdings Inc.
|
(6,166
|
)
|
|
1,231
|
|
|
(1,957
|
)
|
|
726
|
|
|
(6,166
|
)
|
|||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
2,204
|
|
|
—
|
|
|
2,204
|
|
|||||
Total comprehensive income (loss)
|
$
|
(6,166
|
)
|
|
$
|
1,231
|
|
|
$
|
247
|
|
|
$
|
726
|
|
|
$
|
(3,962
|
)
|
(Expressed in thousands)
|
Parent
|
|
Guarantor
subsidiaries
|
|
Non-guarantor
subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash provided by (used in) operating activities
|
$
|
(1,417
|
)
|
|
$
|
1,272
|
|
|
$
|
11,456
|
|
|
$
|
—
|
|
|
$
|
11,311
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchase of furniture, equipment and leasehold improvements
|
—
|
|
|
—
|
|
|
(3,947
|
)
|
|
—
|
|
|
(3,947
|
)
|
|||||
Purchase of tangible assets
|
—
|
|
|
(400
|
)
|
|
—
|
|
|
—
|
|
|
(400
|
)
|
|||||
Cash used in investing activities
|
—
|
|
|
(400
|
)
|
|
(3,947
|
)
|
|
—
|
|
|
(4,347
|
)
|
|||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash dividends paid on Class A non-voting and Class B voting common stock
|
(2,913
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,913
|
)
|
|||||
Payments for employee taxes withheld related to vested share-based awards
|
(2,444
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,444
|
)
|
|||||
Increase in bank call loans, net
|
—
|
|
|
—
|
|
|
(10,800
|
)
|
|
—
|
|
|
(10,800
|
)
|
|||||
Cash used in financing activities
|
(5,357
|
)
|
|
—
|
|
|
(10,800
|
)
|
|
—
|
|
|
(16,157
|
)
|
|||||
Net increase (decrease) in cash and cash equivalents
|
(6,774
|
)
|
|
872
|
|
|
(3,291
|
)
|
|
—
|
|
|
(9,193
|
)
|
|||||
Cash and cash equivalents, beginning of the period
|
7,442
|
|
|
3,716
|
|
|
36,996
|
|
|
—
|
|
|
48,154
|
|
|||||
Cash and cash equivalents, end of the period
|
$
|
668
|
|
|
$
|
4,588
|
|
|
$
|
33,705
|
|
|
$
|
—
|
|
|
$
|
38,961
|
|
(Expressed in thousands)
|
Parent
|
|
Guarantor
subsidiaries
|
|
Non-guarantor
subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash provided by (used in) operating activities
|
$
|
34,273
|
|
|
$
|
(7,052
|
)
|
|
$
|
(97,606
|
)
|
|
$
|
—
|
|
|
$
|
(70,385
|
)
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchase of furniture, equipment and leasehold improvements
|
—
|
|
|
—
|
|
|
(2,075
|
)
|
|
—
|
|
|
(2,075
|
)
|
|||||
Proceeds from settlement of company-owned life insurance
|
—
|
|
|
—
|
|
|
1,194
|
|
|
—
|
|
|
1,194
|
|
|||||
Cash used in investing activities
|
—
|
|
|
—
|
|
|
(881
|
)
|
|
—
|
|
|
(881
|
)
|
|||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash dividends paid on Class A non-voting and Class B voting common stock
|
(2,940
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,940
|
)
|
|||||
Cash dividends paid to non-controlling interest
|
—
|
|
|
—
|
|
|
(816
|
)
|
|
—
|
|
|
(816
|
)
|
|||||
Repurchase of Class A non-voting common stock for cancellation
|
(5,159
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,159
|
)
|
|||||
Payments for employee taxes withheld related to vested share-based awards
|
(2,203
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,203
|
)
|
|||||
Issuance of senior secured notes
|
200,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
200,000
|
|
|||||
Redemption of senior secured notes
|
(150,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(150,000
|
)
|
|||||
Debt issuance costs
|
(547
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(547
|
)
|
|||||
Increase in bank call loans, net
|
—
|
|
|
—
|
|
|
84,600
|
|
|
—
|
|
|
84,600
|
|
|||||
Cash provided by financing activities
|
39,151
|
|
|
—
|
|
|
83,784
|
|
|
—
|
|
|
122,935
|
|
|||||
Net increase (decrease) in cash and cash equivalents
|
73,424
|
|
|
(7,052
|
)
|
|
(14,703
|
)
|
|
—
|
|
|
51,669
|
|
|||||
Cash and cash equivalents, beginning of the period
|
229
|
|
|
10,284
|
|
|
54,400
|
|
|
—
|
|
|
64,913
|
|
|||||
Cash and cash equivalents, end of the period
|
$
|
73,653
|
|
|
$
|
3,232
|
|
|
$
|
39,697
|
|
|
$
|
—
|
|
|
$
|
116,582
|
|
(Expressed in thousands)
|
For the Three Months Ended
|
|
For the Six Months Ended
|
||||||||||
|
June 30, 2018
|
|
June 30, 2018
|
||||||||||
|
Amount Change
|
|
% Change
|
|
Amount Change
|
|
% Change
|
||||||
Revenue
|
|
|
|
|
|
|
|
||||||
Commissions
|
$
|
(1,002
|
)
|
|
(1.2
|
)
|
|
$
|
(4,312
|
)
|
|
(2.5
|
)
|
Advisory fees
|
4,487
|
|
|
6.2
|
|
|
12,626
|
|
|
8.9
|
|
||
Investment banking
|
12,518
|
|
|
81.4
|
|
|
22,707
|
|
|
68.0
|
|
||
Bank deposit sweep income
|
11,133
|
|
|
62.8
|
|
|
22,304
|
|
|
70.0
|
|
||
Interest
|
227
|
|
|
1.8
|
|
|
1,889
|
|
|
8.1
|
|
||
Principal transactions, net
|
1,098
|
|
|
20.7
|
|
|
(1,549
|
)
|
|
(14.5
|
)
|
||
Other
|
(1,789
|
)
|
|
(22.3
|
)
|
|
(5,724
|
)
|
|
(33.5
|
)
|
||
Total revenue
|
26,672
|
|
|
12.4
|
|
|
47,941
|
|
|
11.2
|
|
||
Expenses
|
|
|
|
|
|
|
|
||||||
Compensation and related expenses
|
9,214
|
|
|
6.5
|
|
|
18,440
|
|
|
6.4
|
|
||
Communications and technology
|
(402
|
)
|
|
(2.2
|
)
|
|
580
|
|
|
1.6
|
|
||
Occupancy and equipment costs
|
(260
|
)
|
|
(1.7
|
)
|
|
(104
|
)
|
|
(0.3
|
)
|
||
Clearing and exchange fees
|
(136
|
)
|
|
(2.3
|
)
|
|
106
|
|
|
0.9
|
|
||
Interest
|
4,055
|
|
|
59.2
|
|
|
7,662
|
|
|
62.8
|
|
||
Other
|
63
|
|
|
0.2
|
|
|
(9,531
|
)
|
|
(15.7
|
)
|
||
Total expenses
|
12,534
|
|
|
5.8
|
|
|
17,153
|
|
|
3.9
|
|
||
Income (Loss) before income taxes from continuing operations
|
14,138
|
|
|
*
|
|
|
30,788
|
|
|
*
|
|
||
Income taxes
|
3,936
|
|
|
*
|
|
|
8,539
|
|
|
*
|
|
||
Net income (loss) from continuing operations
|
10,202
|
|
|
*
|
|
|
22,249
|
|
|
*
|
|
||
|
|
|
|
|
|
|
|
||||||
Discontinued operations
|
|
|
|
|
|
|
|
||||||
Income from discontinued operations
|
(89
|
)
|
|
(100.0
|
)
|
|
(1,065
|
)
|
|
(100.0
|
)
|
||
Income taxes
|
(36
|
)
|
|
(100.0
|
)
|
|
(425
|
)
|
|
(100.0
|
)
|
||
Net income from discontinued operations
|
(53
|
)
|
|
(100.0
|
)
|
|
(640
|
)
|
|
(100.0
|
)
|
||
|
|
|
|
|
|
|
|
||||||
Net income (loss)
|
10,149
|
|
|
*
|
|
|
21,609
|
|
|
*
|
|
||
Less net income (loss) attributable to non-controlling interest, net of tax
|
(25
|
)
|
|
*
|
|
|
(117
|
)
|
|
*
|
|
||
Net income (loss) attributable to Oppenheimer Holdings Inc.
|
$
|
10,174
|
|
|
*
|
|
|
$
|
21,726
|
|
|
*
|
|
*
|
Percentage not meaningful.
|
(Expressed in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||||||||
|
2018
|
|
2017
|
|
% Change
|
|
2018
|
|
2017
|
|
% Change
|
||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Private Client
|
$
|
156,553
|
|
|
$
|
140,252
|
|
|
11.6
|
|
|
$
|
310,647
|
|
|
$
|
277,641
|
|
|
11.9
|
|
Asset Management
|
17,706
|
|
|
19,304
|
|
|
(8.3
|
)
|
|
35,350
|
|
|
37,970
|
|
|
(6.9
|
)
|
||||
Capital Markets
|
68,206
|
|
|
53,707
|
|
|
27.0
|
|
|
129,735
|
|
|
109,610
|
|
|
18.4
|
|
||||
Corporate/Other
|
91
|
|
|
2,621
|
|
|
(96.5
|
)
|
|
1,354
|
|
|
3,924
|
|
|
(65.5
|
)
|
||||
Total
|
$
|
242,556
|
|
|
$
|
215,884
|
|
|
12.4
|
|
|
$
|
477,086
|
|
|
$
|
429,145
|
|
|
11.2
|
|
Income (Loss) before income taxes
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Private Client
|
$
|
33,513
|
|
|
$
|
28,051
|
|
|
19.5
|
|
|
$
|
73,675
|
|
|
$
|
56,813
|
|
|
29.7
|
|
Asset Management
|
3,958
|
|
|
4,081
|
|
|
(3.0
|
)
|
|
7,676
|
|
|
7,792
|
|
|
(1.5
|
)
|
||||
Capital Markets
|
(199
|
)
|
|
(10,982
|
)
|
|
(98.2
|
)
|
|
(6,256
|
)
|
|
(23,596
|
)
|
|
(73.5
|
)
|
||||
Corporate/Other
|
(24,771
|
)
|
|
(22,787
|
)
|
|
8.7
|
|
|
(52,969
|
)
|
|
(49,671
|
)
|
|
6.6
|
|
||||
Total
|
$
|
12,501
|
|
|
$
|
(1,637
|
)
|
|
*
|
|
|
$
|
22,126
|
|
|
$
|
(8,662
|
)
|
|
*
|
|
•
|
Client assets under administration were
$85.8 billion
at
June 30, 2018
compared with $86.9 billion at December 31, 2017, a decrease of 1.3%.
|
•
|
Financial adviser headcount was
1,083
at the end of the second quarter of 2018 (1,082 at the end of the first quarter of 2018), down from 1,132 at the end of the second quarter of 2017. The decline in financial adviser headcount since the second quarter of 2017 has resulted from the Company's attention to adviser productivity. The decline in headcount also has been impacted by retirements and normal attrition.
|
•
|
Retail commissions were $49.5 million for the second quarter of 2018, a decrease of 2.4% from the second quarter of 2017 due to reduced transaction volumes from retail investors during the second quarter of 2018.
|
•
|
Advisory fee revenue on traditional and alternative managed products was $59.8 million for the second quarter of 2018, an increase of 11.2% from the second quarter of 2017 (see Asset Management below for further information). The increase in advisory fees was due to the increase in the value of AUM.
|
•
|
Bank deposit sweep income was $28.9 million for the second quarter of 2018, an increase of 62.8% compared with $17.7 million for the second quarter of 2017 due to higher short-term interest rates during the second quarter of 2018.
|
•
|
Advisory fee revenue on traditional and alternative managed products was $17.5 million for the second quarter of 2018, a decrease of 7.4% from the second quarter of 2017. Advisory fees are calculated based on the value of AUM at the end of the prior quarter which totaled $28.2 billion at March 31, 2018 ($25.8 billion at March 31, 2017) and are allocated to the Private Client and Asset Management business segments.
|
•
|
AUM increased 10.0% to
$28.7 billion
at
June 30, 2018
compared with $26.1 billion at
June 30, 2017
. AUM at
June 30, 2018
is the basis for advisory fee billings for the third quarter of 2018. The increase in AUM was comprised of asset appreciation of $1.7 billion and net contributions of assets of $0.9 billion.
|
(1)
|
Traditional investments include third party advisory programs, Oppenheimer financial adviser managed and advisory programs, and Oppenheimer Asset Management taxable and tax-exempt portfolio management strategies.
|
(2)
|
Institutional fixed income provides solutions to institutional investors including: Taft-Hartley Funds, Public Pension Funds, Corporate Pension Funds, and Foundations and Endowments.
|
(3)
|
Hedge funds represent single manager hedge fund strategies in areas including hedged equity, technology and financial services, and multi-manager and multi-strategy fund of funds.
|
(4)
|
Private equity funds represent private equity fund of funds including portfolios focused on natural resources and related assets.
|
(5)
|
The portfolio enhancement program sells uncovered, far out-of-money puts and calls on the S&P 500 Index. The program is market neutral and uncorrelated to the index.
|
•
|
Institutional equities commissions decreased 2.9% to $23.2 million for the second quarter of 2018 compared with the second quarter of 2017 reflecting lower client trading activity in the second quarter of 2018.
|
•
|
Advisory fees from investment banking activities increased 40.4% to $8.0 million in the second quarter of 2018 compared with the second quarter of 2017 due to higher fees earned on completed merger and acquisition transactions during the second quarter of 2018.
|
•
|
Equity underwriting fees increased 176.4% to $15.2 million for the second quarter of 2018 compared with the second quarter of 2017 due to the Company's increased focus on equity issuances as well as a robust market for equity underwritings during the second quarter of 2018.
|
•
|
Revenue from Taxable Fixed Income increased 20.5% to $15.3 million for the second quarter of 2018 compared with the second quarter of 2017 due to higher government and corporate trading income as well as higher institutional fixed income commissions during the second quarter of 2018.
|
•
|
Public Finance and Municipal Trading revenue increased 7.5% to $5.7 million for the second quarter of 2018 compared with the second quarter of 2017 due to higher municipal capital markets fees and commissions offset by lower municipal trading income during the second quarter of 2018.
|
(Expressed in thousands)
|
|
|
|
||||
|
For the six months ended June 30,
|
||||||
|
2018
|
|
2017
|
||||
Cash provided by (used in) operating activities
|
$
|
11,311
|
|
|
$
|
(70,385
|
)
|
Cash used in investing activities
|
(4,347
|
)
|
|
(881
|
)
|
||
Cash (used in) provided by financing activities
|
(16,157
|
)
|
|
122,935
|
|
||
Net (decrease) increase in cash and cash equivalents
|
$
|
(9,193
|
)
|
|
$
|
51,669
|
|
(1)
|
Principal amount represents the par value of the ARS and is included in securities owned on the condensed consolidated balance sheet at
June 30, 2018
. The valuation adjustment amount is included as a reduction to securities owned on the condensed consolidated balance sheet at
June 30, 2018
.
|
(2)
|
Principal amount represents the present value of the ARS par value that the Company is committed to purchase at a future date. This principal amount is presented as an off-balance sheet item. The valuation adjustment is included in accounts payable and other liabilities on the condensed consolidated balance sheet at
June 30, 2018
.
|
(3)
|
Specific ARS to be purchased under ARS Purchase Commitments are unknown until the beneficial owner selects the individual ARS to be purchased.
|
(4)
|
Commitments to purchase under settlements with the Regulators at
June 30, 2018
. Eligible Investors for future buybacks under the settlements with the Regulators held approximately
$21.2 million
of ARS as of
June 30, 2018
.
|
(5)
|
Commitments to purchase under various legal settlements and awards with clients through 2020.
|
(1)
|
See note 9 to the condensed consolidated financial statements in Item 1 for additional information.
|
(2)
|
Includes interest payable of $54.0 million through maturity.
|
(3)
|
See note 12 to the condensed consolidated financial statements in Item 1 for additional information.
|
(a)
|
During the second quarter of 2018, the Company issued
15,250
shares of Class A Stock pursuant to the Company's share-based compensation plans to certain employees of the Company for no cash consideration. Such issuances were exempt from registration pursuant to Section 4(a)(2) of the Securities Act of 1933.
|
(b)
|
Not applicable.
|
(c)
|
Not applicable.
|
OPPENHEIMER HOLDINGS INC.
|
|
BY: /s/ Albert G. Lowenthal
|
Albert G. Lowenthal, Chairman and Chief Executive Officer
|
(Principal Executive Officer)
|
|
BY: /s/ Jeffrey J. Alfano
|
Jeffrey J. Alfano, Chief Financial Officer
|
(Principal Financial and Accounting Officer)
|
|
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