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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 | |
---|---|---|---|---|---|---|---|---|
0.17 | 0.41% | 41.92 | 42.01 | 41.5101 | 41.66 | 11,405 | 19:32:37 |
|
|
|
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
|
Delaware
|
98-0080034
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
|
Title of each class
|
Trading Symbol
|
Name of each exchange on which registered
|
Common Stock
|
OPY
|
The New York Stock Exchange
|
Large accelerated filer
|
o
|
|
Accelerated filer
|
x
|
|
|
|
|
|
Non-accelerated filer
|
o
|
|
Smaller reporting company
|
o
|
|
|
|
|
|
Emerging growth company
|
o
|
|
|
|
|
|
|
|
|
|
Page No.
|
PART I
|
|
|
Item 1.
|
|
|
|
Condensed Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018
|
|
|
Condensed Consolidated Income Statements for the three and six months ended June 30, 2019 and 2018
|
|
|
Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2019 and 2018
|
|
|
||
|
Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2019 and 2018
|
|
|
||
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, 2019
|
|
December 31, 2018
|
||||
ASSETS
|
|
|
|
||||
Cash and cash equivalents
|
$
|
71,307
|
|
|
$
|
90,675
|
|
Deposits with clearing organizations
|
65,491
|
|
|
67,678
|
|
||
Receivable from brokers, dealers and clearing organizations
|
167,931
|
|
|
166,493
|
|
||
Receivable from customers, net of allowance for credit losses of $920 ($886 in 2018)
|
807,581
|
|
|
720,777
|
|
||
Income tax receivable
|
—
|
|
|
1,014
|
|
||
Securities purchased under agreements to resell
|
39
|
|
|
290
|
|
||
Securities owned, including amounts pledged of $547,326 ($517,951 in 2018), at fair value
|
995,370
|
|
|
837,584
|
|
||
Notes receivable, net of accumulated amortization and allowance for uncollectibles of $32,369 and $6,827 respectively ($25,109 and $6,800, respectively, in 2018)
|
43,413
|
|
|
44,058
|
|
||
Furniture, equipment and leasehold improvements, net of accumulated depreciation of $90,633 ($89,182 in 2018)
|
32,327
|
|
|
28,988
|
|
||
Right-of-use lease assets, net of accumulated amortization of $12,983
|
166,612
|
|
|
—
|
|
||
Goodwill
|
137,889
|
|
|
137,889
|
|
||
Intangible assets
|
32,100
|
|
|
32,100
|
|
||
Other assets
|
132,356
|
|
|
112,768
|
|
||
Total assets
|
$
|
2,652,416
|
|
|
$
|
2,240,314
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
||||
Liabilities
|
|
|
|
||||
Drafts payable
|
$
|
17,456
|
|
|
$
|
16,348
|
|
Bank call loans
|
50,100
|
|
|
15,000
|
|
||
Payable to brokers, dealers and clearing organizations
|
418,719
|
|
|
289,207
|
|
||
Payable to customers
|
325,754
|
|
|
336,616
|
|
||
Securities sold under agreements to repurchase
|
521,837
|
|
|
484,218
|
|
||
Securities sold but not yet purchased, at fair value
|
155,979
|
|
|
85,446
|
|
||
Accrued compensation
|
130,879
|
|
|
167,348
|
|
||
Income tax payable
|
849
|
|
|
—
|
|
||
Accounts payable and other liabilities
|
42,709
|
|
|
87,630
|
|
||
Lease liabilities
|
210,255
|
|
|
—
|
|
||
Senior secured notes, net of debt issuance costs of $775 ($904 in 2018)
|
199,225
|
|
|
199,096
|
|
||
Deferred tax liabilities, net of deferred tax assets of $43,682 ($41,722 in 2018)
|
15,044
|
|
|
14,083
|
|
||
Total liabilities
|
2,088,806
|
|
|
1,694,992
|
|
||
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, 12,756,308 and 12,941,809 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively
|
48,069
|
|
|
53,259
|
|
||
Class B voting common stock, par value $0.001 per share, 99,665 shares authorized, issued and outstanding as of June 30, 2019 and December 31, 2018
|
133
|
|
|
133
|
|
||
|
48,202
|
|
|
53,392
|
|
||
Contributed capital
|
43,626
|
|
|
41,776
|
|
||
Retained earnings
|
470,693
|
|
|
449,989
|
|
||
Accumulated other comprehensive income
|
1,089
|
|
|
165
|
|
||
Total stockholders' equity
|
563,610
|
|
|
545,322
|
|
||
Total liabilities and stockholders' equity
|
$
|
2,652,416
|
|
|
$
|
2,240,314
|
|
|
|
|
|
|
|
|
|
||||||||
|
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)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
REVENUE
|
|
|
|
|
|
|
|
||||||||
Commissions
|
$
|
80,896
|
|
|
$
|
82,850
|
|
|
$
|
160,305
|
|
|
$
|
166,257
|
|
Advisory fees
|
80,707
|
|
|
77,270
|
|
|
154,354
|
|
|
154,818
|
|
||||
Investment banking
|
32,006
|
|
|
27,904
|
|
|
60,049
|
|
|
56,114
|
|
||||
Bank deposit sweep income
|
31,830
|
|
|
28,853
|
|
|
65,798
|
|
|
54,150
|
|
||||
Interest
|
13,550
|
|
|
13,056
|
|
|
26,277
|
|
|
25,283
|
|
||||
Principal transactions, net
|
3,045
|
|
|
6,400
|
|
|
14,483
|
|
|
9,126
|
|
||||
Other
|
8,901
|
|
|
6,223
|
|
|
21,439
|
|
|
11,338
|
|
||||
Total revenue
|
250,935
|
|
|
242,556
|
|
|
502,705
|
|
|
477,086
|
|
||||
EXPENSES
|
|
|
|
|
|
|
|
||||||||
Compensation and related expenses
|
155,783
|
|
|
151,871
|
|
|
316,138
|
|
|
304,975
|
|
||||
Communications and technology
|
20,499
|
|
|
17,997
|
|
|
40,585
|
|
|
36,685
|
|
||||
Occupancy and equipment costs
|
15,573
|
|
|
14,901
|
|
|
30,846
|
|
|
30,329
|
|
||||
Clearing and exchange fees
|
5,678
|
|
|
5,780
|
|
|
11,010
|
|
|
11,876
|
|
||||
Interest
|
13,192
|
|
|
10,909
|
|
|
26,178
|
|
|
19,872
|
|
||||
Other
|
22,819
|
|
|
28,581
|
|
|
44,505
|
|
|
51,211
|
|
||||
Total expenses
|
233,544
|
|
|
230,039
|
|
|
469,262
|
|
|
454,948
|
|
||||
Income before income taxes
|
17,391
|
|
|
12,517
|
|
|
33,443
|
|
|
22,138
|
|
||||
Income taxes
|
5,016
|
|
|
3,662
|
|
|
9,874
|
|
|
6,578
|
|
||||
Net income
|
$
|
12,375
|
|
|
$
|
8,855
|
|
|
$
|
23,569
|
|
|
$
|
15,560
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per share
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.95
|
|
|
$
|
0.67
|
|
|
$
|
1.81
|
|
|
$
|
1.17
|
|
Diluted
|
$
|
0.89
|
|
|
$
|
0.63
|
|
|
$
|
1.70
|
|
|
$
|
1.11
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares
|
|
|
|
|
|
|
|
||||||||
Basic
|
12,976,235
|
|
|
13,248,812
|
|
|
12,998,168
|
|
|
13,244,245
|
|
||||
Diluted
|
13,861,753
|
|
|
14,050,573
|
|
|
13,857,616
|
|
|
14,005,556
|
|
|
|
|
|
|
|
|
|
||||||||
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
(Expressed in thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income
|
$
|
12,375
|
|
|
$
|
8,855
|
|
|
$
|
23,569
|
|
|
$
|
15,560
|
|
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
||||||||
Currency translation adjustment
|
361
|
|
|
(837
|
)
|
|
924
|
|
|
(979
|
)
|
||||
Comprehensive income
|
$
|
12,736
|
|
|
$
|
8,018
|
|
|
$
|
24,493
|
|
|
$
|
14,581
|
|
|
|
|
|
|
|
|
|
||||||||
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
(Expressed in thousands, except per share amounts)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Share capital
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of period
|
$
|
52,519
|
|
|
$
|
58,529
|
|
|
$
|
53,392
|
|
|
$
|
58,492
|
|
Issuance of Class A non-voting common stock
|
—
|
|
|
296
|
|
|
1,162
|
|
|
333
|
|
||||
Repurchase of Class A non-voting common stock for cancellation
|
(4,317
|
)
|
|
—
|
|
|
(6,352
|
)
|
|
—
|
|
||||
Balance at end of period
|
48,202
|
|
|
58,825
|
|
|
48,202
|
|
|
58,825
|
|
||||
Contributed capital
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of period
|
41,489
|
|
|
37,996
|
|
|
41,776
|
|
|
36,546
|
|
||||
Share-based expense
|
2,137
|
|
|
1,587
|
|
|
4,026
|
|
|
3,096
|
|
||||
Vested employee share plan awards
|
—
|
|
|
(296
|
)
|
|
(2,176
|
)
|
|
(355
|
)
|
||||
Balance at end of period
|
43,626
|
|
|
39,287
|
|
|
43,626
|
|
|
39,287
|
|
||||
Retained earnings
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of period
|
459,751
|
|
|
432,544
|
|
|
449,989
|
|
|
426,930
|
|
||||
Net income
|
12,375
|
|
|
8,855
|
|
|
23,569
|
|
|
15,560
|
|
||||
Dividends paid
|
(1,433
|
)
|
|
(1,457
|
)
|
|
(2,865
|
)
|
|
(2,913
|
)
|
||||
Other
|
—
|
|
|
(16
|
)
|
|
—
|
|
|
349
|
|
||||
Balance at end of period
|
470,693
|
|
|
439,926
|
|
|
470,693
|
|
|
439,926
|
|
||||
Accumulated other comprehensive income
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of period
|
728
|
|
|
1,440
|
|
|
165
|
|
|
1,582
|
|
||||
Currency translation adjustment
|
361
|
|
|
(837
|
)
|
|
924
|
|
|
(979
|
)
|
||||
Balance at end of period
|
1,089
|
|
|
603
|
|
|
1,089
|
|
|
603
|
|
||||
Total stockholders' equity
|
$
|
563,610
|
|
|
$
|
538,641
|
|
|
$
|
563,610
|
|
|
$
|
538,641
|
|
|
|
|
|
|
|
|
|
||||||||
Dividends paid per share
|
$
|
0.11
|
|
|
$
|
0.11
|
|
|
$
|
0.22
|
|
|
$
|
0.22
|
|
(Expressed in thousands)
|
2019
|
|
2018
|
||||
Cash flows from operating activities
|
|
|
|
||||
Net income
|
$
|
23,569
|
|
|
$
|
15,560
|
|
Adjustments to reconcile net income to net cash (used in) provided by operating activities
|
|
|
|
||||
Non-cash items included in net income:
|
|
|
|
||||
Depreciation and amortization of furniture, equipment and leasehold improvements
|
3,602
|
|
|
3,140
|
|
||
Deferred income taxes
|
1,081
|
|
|
2,712
|
|
||
Amortization of notes receivable
|
6,469
|
|
|
6,378
|
|
||
Amortization of debt issuance costs
|
129
|
|
|
129
|
|
||
Provision for credit losses
|
34
|
|
|
79
|
|
||
Share-based compensation
|
6,384
|
|
|
5,216
|
|
||
Amortization of right-of-use lease assets
|
12,892
|
|
|
—
|
|
||
Decrease (increase) in operating assets:
|
|
|
|
||||
Deposits with clearing organizations
|
2,187
|
|
|
(14,642
|
)
|
||
Receivable from brokers, dealers and clearing organizations
|
(1,438
|
)
|
|
(17,412
|
)
|
||
Receivable from customers
|
(86,838
|
)
|
|
12,439
|
|
||
Income tax receivable
|
1,014
|
|
|
121
|
|
||
Securities purchased under agreements to resell
|
251
|
|
|
(6,080
|
)
|
||
Securities owned
|
(157,786
|
)
|
|
(93,807
|
)
|
||
Notes receivable
|
(5,824
|
)
|
|
(8,268
|
)
|
||
Other assets
|
(19,359
|
)
|
|
29,452
|
|
||
Increase (decrease) in operating liabilities:
|
|
|
|
||||
Drafts payable
|
1,108
|
|
|
(20,780
|
)
|
||
Payable to brokers, dealers and clearing organizations
|
129,512
|
|
|
71,059
|
|
||
Payable to customers
|
(10,862
|
)
|
|
(12,243
|
)
|
||
Income taxes payable
|
849
|
|
|
—
|
|
||
Securities sold under agreements to repurchase
|
37,619
|
|
|
12,673
|
|
||
Securities sold but not yet purchased
|
70,533
|
|
|
67,556
|
|
||
Accrued compensation
|
(38,827
|
)
|
|
(46,251
|
)
|
||
Accounts payable and other liabilities
|
(14,290
|
)
|
|
4,280
|
|
||
Cash (used in) provided by operating activities
|
(37,991
|
)
|
|
11,311
|
|
||
Cash flows from investing activities
|
|
|
|
||||
Purchase of furniture, equipment and leasehold improvements
|
(6,941
|
)
|
|
(3,947
|
)
|
||
Purchase of intangible assets
|
—
|
|
|
(400
|
)
|
||
Proceeds from the settlement of Company-owned life insurance
|
695
|
|
|
—
|
|
||
Cash used in investing activities
|
(6,246
|
)
|
|
(4,347
|
)
|
||
Cash flows from financing activities
|
|
|
|
||||
Cash dividends paid on Class A non-voting and Class B voting common stock
|
(2,865
|
)
|
|
(2,913
|
)
|
||
Repurchase of Class A non-voting common stock for cancellation
|
(6,352
|
)
|
|
—
|
|
||
Payments for employee taxes withheld related to vested share-based awards
|
(1,014
|
)
|
|
(2,444
|
)
|
||
Increase (decrease) in bank call loans, net
|
35,100
|
|
|
(10,800
|
)
|
||
Cash provided by (used in) financing activities
|
24,869
|
|
|
(16,157
|
)
|
||
Net decrease in cash and cash equivalents
|
(19,368
|
)
|
|
(9,193
|
)
|
||
Cash and cash equivalents, beginning of period
|
90,675
|
|
|
48,154
|
|
||
Cash and cash equivalents, end of period
|
$
|
71,307
|
|
|
$
|
38,961
|
|
|
|
|
|
||||
Schedule of non-cash financing activities
|
|
|
|
||||
Employee share plan issuance
|
$
|
1,706
|
|
|
$
|
333
|
|
|
|
|
|
||||
Supplemental disclosure of cash flow information
|
|
|
|
||||
Cash paid during the period for interest
|
$
|
25,830
|
|
|
$
|
26,899
|
|
Cash paid during the period for income taxes, net
|
$
|
7,326
|
|
|
$
|
3,918
|
|
OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
|
OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
|
|
|
|
As of
June 30, 2019
|
|
|
Weighted average remaining lease term (in years)
|
8.61
|
Weighted average discount rate
|
7.92%
|
(Expressed in thousands)
|
|
|
|
||||
|
For the Three Months Ended June 30, 2019
|
|
For the Six Months Ended June 30, 2019
|
||||
Operating lease cost:
|
|
|
|
||||
Real estate leases - Right-of-use lease asset amortization
|
$
|
5,712
|
|
|
$
|
12,044
|
|
Real estate leases - Interest expense
|
4,204
|
|
|
7,647
|
|
||
Equipment leases - Right-of-use lease asset amortization
|
474
|
|
|
939
|
|
||
Equipment leases - Interest expense
|
57
|
|
|
114
|
|
(Expressed in thousands)
|
|
||
|
As of
June 30, 2019
|
||
|
|
||
2019
|
$
|
20,764
|
|
2020
|
41,076
|
|
|
2021
|
35,997
|
|
|
2022
|
32,125
|
|
|
2023
|
30,095
|
|
|
After 2024
|
134,370
|
|
|
Total lease payments
|
$
|
294,427
|
|
Less interest
|
(84,172
|
)
|
|
Present value of lease liabilities
|
$
|
210,255
|
|
OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
|
(Expressed in thousands)
|
For the Three Months Ended June 30, 2019
|
||||||||||||||||||
|
Reportable Segments
|
||||||||||||||||||
|
Private Client
|
|
Asset Management
|
|
Capital Markets
|
|
Corporate/Other
|
|
Total
|
||||||||||
Revenue from contracts with customers:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commissions from sales and trading
|
$
|
37,026
|
|
|
$
|
—
|
|
|
$
|
33,736
|
|
|
$
|
4
|
|
|
$
|
70,766
|
|
Mutual fund income
|
10,124
|
|
|
1
|
|
|
1
|
|
|
4
|
|
|
10,130
|
|
|||||
Advisory fees
|
62,080
|
|
|
18,617
|
|
|
2
|
|
|
8
|
|
|
80,707
|
|
|||||
Investment banking - capital markets
|
4,262
|
|
|
—
|
|
|
14,699
|
|
|
—
|
|
|
18,961
|
|
|||||
Investment banking - advisory
|
—
|
|
|
—
|
|
|
13,045
|
|
|
—
|
|
|
13,045
|
|
|||||
Bank deposit sweep income
|
31,830
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31,830
|
|
|||||
Other
|
3,526
|
|
|
—
|
|
|
522
|
|
|
1,537
|
|
|
5,585
|
|
|||||
Total revenue from contracts with customers
|
148,848
|
|
|
18,618
|
|
|
62,005
|
|
|
1,553
|
|
|
231,024
|
|
|||||
Other sources of revenue:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest
|
9,639
|
|
|
—
|
|
|
3,459
|
|
|
452
|
|
|
13,550
|
|
|||||
Principal transactions, net
|
538
|
|
|
—
|
|
|
6,312
|
|
|
(3,805
|
)
|
|
3,045
|
|
|||||
Other
|
2,903
|
|
|
4
|
|
|
43
|
|
|
366
|
|
|
3,316
|
|
|||||
Total other sources of revenue
|
13,080
|
|
|
4
|
|
|
9,814
|
|
|
(2,987
|
)
|
|
19,911
|
|
|||||
Total revenue
|
$
|
161,928
|
|
|
$
|
18,622
|
|
|
$
|
71,819
|
|
|
$
|
(1,434
|
)
|
|
$
|
250,935
|
|
(Expressed in thousands)
|
For the Three Months Ended June 30, 2018
|
||||||||||||||||||
|
Reportable Segments
|
||||||||||||||||||
|
Private Client
|
|
Asset Management
|
|
Capital Markets
|
|
Corporate/Other
|
|
Total
|
||||||||||
Revenue 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 revenue 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, 2019
|
||||||||||||||||||
|
Reportable Segments
|
||||||||||||||||||
|
Private Client
|
|
Asset Management
|
|
Capital Markets
|
|
Corporate/Other
|
|
Total
|
||||||||||
Revenue from contracts with customers:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commissions from sales and trading
|
$
|
74,502
|
|
|
$
|
—
|
|
|
$
|
66,052
|
|
|
$
|
7
|
|
|
$
|
140,561
|
|
Mutual fund income
|
19,738
|
|
|
(5
|
)
|
|
2
|
|
|
9
|
|
|
19,744
|
|
|||||
Advisory fees
|
119,124
|
|
|
35,206
|
|
|
7
|
|
|
17
|
|
|
154,354
|
|
|||||
Investment banking - capital markets
|
7,011
|
|
|
—
|
|
|
23,292
|
|
|
—
|
|
|
30,303
|
|
|||||
Investment banking - advisory
|
—
|
|
|
—
|
|
|
29,746
|
|
|
—
|
|
|
29,746
|
|
|||||
Bank deposit sweep income
|
65,798
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
65,798
|
|
|||||
Other
|
6,805
|
|
|
—
|
|
|
841
|
|
|
1,793
|
|
|
9,439
|
|
|||||
Total revenue from contracts with customers
|
292,978
|
|
|
35,201
|
|
|
119,940
|
|
|
1,826
|
|
|
449,945
|
|
|||||
Other sources of revenue:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest
|
19,047
|
|
|
—
|
|
|
6,294
|
|
|
936
|
|
|
26,277
|
|
|||||
Principal transactions, net
|
2,222
|
|
|
—
|
|
|
16,469
|
|
|
(4,208
|
)
|
|
14,483
|
|
|||||
Other
|
11,208
|
|
|
7
|
|
|
77
|
|
|
708
|
|
|
12,000
|
|
|||||
Total other sources of revenue
|
32,477
|
|
|
7
|
|
|
22,840
|
|
|
(2,564
|
)
|
|
52,760
|
|
|||||
Total revenue
|
$
|
325,455
|
|
|
$
|
35,208
|
|
|
$
|
142,780
|
|
|
$
|
(738
|
)
|
|
$
|
502,705
|
|
(Expressed in thousands)
|
For the Six Months Ended June 30, 2018
|
||||||||||||||||||
|
Reportable Segments
|
||||||||||||||||||
|
Private Client
|
|
Asset Management
|
|
Capital Markets
|
|
Corporate/Other
|
|
Total
|
||||||||||
Revenue 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 revenue 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 fees earned but not yet received.
|
(6)
|
Retainer fees and fees earned from certain advisory transactions where the performance obligations
|
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,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Basic weighted average number of shares outstanding
|
12,976,235
|
|
|
13,248,812
|
|
|
12,998,168
|
|
|
13,244,245
|
|
||||
Net dilutive effect of share-based awards, treasury method
(1)
|
885,518
|
|
|
801,761
|
|
|
859,448
|
|
|
761,311
|
|
||||
Diluted weighted average number of shares outstanding
|
13,861,753
|
|
|
14,050,573
|
|
|
13,857,616
|
|
|
14,005,556
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
12,375
|
|
|
$
|
8,855
|
|
|
$
|
23,569
|
|
|
$
|
15,560
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per share
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.95
|
|
|
$
|
0.67
|
|
|
$
|
1.81
|
|
|
$
|
1.17
|
|
Diluted
|
$
|
0.89
|
|
|
$
|
0.63
|
|
|
$
|
1.70
|
|
|
$
|
1.11
|
|
(1)
|
For both the three and six months ended
June 30, 2019
, the diluted net income per share computation does not include the anti-dilutive effect of
7,628
shares of Class A Stock granted under share-based compensation arrangements (
4,050
shares for both the three and six months ended June 30, 2018).
|
OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
|
OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
|
(Expressed in thousands)
|
|
|
|
|
|
|
|
||||
|
Fair Value
|
|
Unfunded
Commitments
|
|
Redemption
Frequency
|
|
Redemption
Notice Period
|
||||
Hedge funds
(1)
|
$
|
1,664
|
|
|
$
|
—
|
|
|
Quarterly - Annually
|
|
30 - 120 Days
|
Private equity funds
(2)
|
4,665
|
|
|
1,399
|
|
|
N/A
|
|
N/A
|
||
|
$
|
6,329
|
|
|
$
|
1,399
|
|
|
|
|
|
(1)
|
Includes investments in hedge funds and hedge fund of funds that pursue long/short, event-driven,
|
(2)
|
Includes private equity funds and private equity fund of funds with a focus on diversified portfolios,
|
(Expressed in thousands)
|
|
|
|
|
|
|
|
||||||||
|
Fair Value Measurements as of June 30, 2019
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
10,500
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,500
|
|
Deposits with clearing organizations
|
31,293
|
|
|
—
|
|
|
—
|
|
|
31,293
|
|
||||
Securities owned:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
689,992
|
|
|
—
|
|
|
—
|
|
|
689,992
|
|
||||
U.S. Agency securities
|
4,540
|
|
|
20,213
|
|
|
—
|
|
|
24,753
|
|
||||
Sovereign obligations
|
—
|
|
|
1,063
|
|
|
—
|
|
|
1,063
|
|
||||
Corporate debt and other obligations
|
—
|
|
|
25,556
|
|
|
—
|
|
|
25,556
|
|
||||
Mortgage and other asset-backed securities
|
—
|
|
|
1,956
|
|
|
—
|
|
|
1,956
|
|
||||
Municipal obligations
|
—
|
|
|
141,362
|
|
|
—
|
|
|
141,362
|
|
||||
Convertible bonds
|
—
|
|
|
26,123
|
|
|
—
|
|
|
26,123
|
|
||||
Corporate equities
|
39,430
|
|
|
—
|
|
|
—
|
|
|
39,430
|
|
||||
Money markets
|
2,674
|
|
|
—
|
|
|
—
|
|
|
2,674
|
|
||||
Auction rate securities
|
—
|
|
|
42,461
|
|
|
—
|
|
|
42,461
|
|
||||
Securities owned, at fair value
|
736,636
|
|
|
258,734
|
|
|
—
|
|
|
995,370
|
|
||||
Investments
(1)
|
—
|
|
|
106
|
|
|
|
|
|
106
|
|
||||
Derivative contracts:
|
|
|
|
|
|
|
|
||||||||
TBAs
|
—
|
|
|
14
|
|
|
—
|
|
|
14
|
|
||||
Total
|
$
|
778,429
|
|
|
$
|
258,854
|
|
|
$
|
—
|
|
|
$
|
1,037,283
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Securities sold but not yet purchased:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
$
|
97,720
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
97,720
|
|
U.S. Agency securities
|
—
|
|
|
19
|
|
|
—
|
|
|
19
|
|
||||
Sovereign obligations
|
—
|
|
|
1,066
|
|
|
—
|
|
|
1,066
|
|
||||
Corporate debt and other obligations
|
—
|
|
|
20,907
|
|
|
—
|
|
|
20,907
|
|
||||
Mortgage and other asset-backed securities
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
Convertible bonds
|
—
|
|
|
17,779
|
|
|
—
|
|
|
17,779
|
|
||||
Corporate equities
|
18,487
|
|
|
—
|
|
|
—
|
|
|
18,487
|
|
||||
Securities sold but not yet purchased, at fair value
|
116,207
|
|
|
39,772
|
|
|
—
|
|
|
155,979
|
|
||||
Derivative contracts:
|
|
|
|
|
|
|
|
||||||||
Futures
|
1,781
|
|
|
—
|
|
|
—
|
|
|
1,781
|
|
||||
Foreign exchange forward contracts
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
||||
TBAs
|
—
|
|
|
45
|
|
|
—
|
|
|
45
|
|
||||
ARS purchase commitments
|
—
|
|
|
764
|
|
|
—
|
|
|
764
|
|
||||
Derivative contracts, total
|
1,785
|
|
|
809
|
|
|
—
|
|
|
2,594
|
|
||||
Total
|
$
|
117,992
|
|
|
$
|
40,581
|
|
|
$
|
—
|
|
|
$
|
158,573
|
|
(Expressed in thousands)
|
|
|
|
|
|
|
|
||||||||
|
Fair Value Measurements as of December 31, 2018
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
10,500
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,500
|
|
Deposits with clearing organizations
|
34,599
|
|
|
—
|
|
|
—
|
|
|
34,599
|
|
||||
Securities owned:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
657,208
|
|
|
—
|
|
|
—
|
|
|
657,208
|
|
||||
U.S. Agency securities
|
812
|
|
|
6,494
|
|
|
—
|
|
|
7,306
|
|
||||
Sovereign obligations
|
—
|
|
|
214
|
|
|
—
|
|
|
214
|
|
||||
Corporate debt and other obligations
|
—
|
|
|
20,665
|
|
|
—
|
|
|
20,665
|
|
||||
Mortgage and other asset-backed securities
|
—
|
|
|
2,486
|
|
|
—
|
|
|
2,486
|
|
||||
Municipal obligations
|
—
|
|
|
52,261
|
|
|
—
|
|
|
52,261
|
|
||||
Convertible bonds
|
—
|
|
|
31,270
|
|
|
—
|
|
|
31,270
|
|
||||
Corporate equities
|
28,215
|
|
|
—
|
|
|
—
|
|
|
28,215
|
|
||||
Money markets
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
||||
Auction rate securities
|
—
|
|
|
16,253
|
|
|
21,699
|
|
|
37,952
|
|
||||
Securities owned, at fair value
|
686,242
|
|
|
129,643
|
|
|
21,699
|
|
|
837,584
|
|
||||
Investments
(1)
|
—
|
|
|
—
|
|
|
101
|
|
|
101
|
|
||||
Derivative contracts:
|
|
|
|
|
|
|
|
|
|
|
|
||||
TBAs
|
—
|
|
|
4,873
|
|
|
—
|
|
|
4,873
|
|
||||
Total
|
$
|
731,341
|
|
|
$
|
134,516
|
|
|
$
|
21,800
|
|
|
$
|
887,657
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Securities sold but not yet purchased:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
$
|
53,646
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
53,646
|
|
U.S. Agency securities
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
||||
Sovereign obligations
|
—
|
|
|
78
|
|
|
—
|
|
|
78
|
|
||||
Corporate debt and other obligations
|
—
|
|
|
7,236
|
|
|
—
|
|
|
7,236
|
|
||||
Convertible bonds
|
—
|
|
|
9,709
|
|
|
—
|
|
|
9,709
|
|
||||
Corporate equities
|
14,774
|
|
|
—
|
|
|
—
|
|
|
14,774
|
|
||||
Securities sold but not yet purchased, at fair value
|
68,420
|
|
|
17,026
|
|
|
—
|
|
|
85,446
|
|
||||
Derivative contracts:
|
|
|
|
|
|
|
|
||||||||
Futures
|
807
|
|
|
—
|
|
|
—
|
|
|
807
|
|
||||
Foreign exchange forward contracts
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
||||
TBAs
|
—
|
|
|
4,873
|
|
|
—
|
|
|
4,873
|
|
||||
ARS purchase commitments
|
—
|
|
|
1,096
|
|
|
—
|
|
|
1,096
|
|
||||
Derivative contracts, total
|
811
|
|
|
5,969
|
|
|
—
|
|
|
6,780
|
|
||||
Total
|
$
|
69,231
|
|
|
$
|
22,995
|
|
|
$
|
—
|
|
|
$
|
92,226
|
|
(Expressed in thousands)
|
|||||||||||||||||||||||
|
Level 3 Assets and Liabilities
|
||||||||||||||||||||||
|
For the Three Months Ended June 30, 2019
|
||||||||||||||||||||||
|
Beginning
Balance
|
|
Total Realized
and Unrealized
Gains
(2)(3)
|
|
Purchases
and Issuances
|
|
Sales and Settlements
|
|
Transfers
In (Out)
|
|
Ending
Balance
|
||||||||||||
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Auction rate securities
(1)
|
$
|
21,700
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(350
|
)
|
|
$
|
(21,350
|
)
|
|
$
|
—
|
|
Investments
|
104
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
(106
|
)
|
|
—
|
|
(1)
|
Represents auction rate preferred securities that failed in the auction rate market.
|
(2)
|
Included in principal transactions in the condensed consolidated statement of income, except for
|
(3)
|
Unrealized gains 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, 2018
|
||||||||||||||||||||||
|
Beginning
Balance
|
|
Total Realized
and Unrealized
Gains (losses)
(3)(4)
|
|
Purchases
and Issuances
|
|
Sales and Settlements
|
|
Transfers
In (Out)
|
|
Ending
Balance
|
||||||||||||
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Auction rate securities
(1)
|
$
|
87,350
|
|
|
$
|
(902
|
)
|
|
$
|
4,050
|
|
|
$
|
(275
|
)
|
|
$
|
(17,602
|
)
|
|
$
|
72,621
|
|
Investments
|
168
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
164
|
|
||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
ARS purchase commitments
(2)
|
183
|
|
|
(39
|
)
|
|
—
|
|
|
—
|
|
|
91
|
|
|
131
|
|
(1)
|
Represents auction rate preferred securities, municipal auction rate securities and student loan
|
(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 income, except for
|
(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, 2019
|
||||||||||||||||||||||
|
Beginning
Balance
|
|
Total Realized
and Unrealized
Gains
(2)(3)
|
|
Purchases
and Issuances
|
|
Sales and Settlements
|
|
Transfers
In (Out)
|
|
Ending
Balance
|
||||||||||||
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Auction rate securities
(1)
|
$
|
21,699
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
(350
|
)
|
|
$
|
(21,350
|
)
|
|
$
|
—
|
|
Investments
|
101
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
(106
|
)
|
|
—
|
|
(1)
|
Represents auction rate preferred securities that failed in the auction rate market.
|
(2)
|
Included in principal transactions in the condensed consolidated statement of income, except for
|
(3)
|
Unrealized gains 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
|
(2)
|
Represents the difference in principal and fair value for auction rate securities purchase
|
(3)
|
Included in principal transactions in the condensed consolidated statement of income, except
|
(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
|
$
|
60,807
|
|
|
$
|
60,807
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
60,807
|
|
Deposits with clearing organization
|
34,198
|
|
|
34,198
|
|
|
—
|
|
|
—
|
|
|
34,198
|
|
|||||
Receivable from brokers, dealers and clearing organizations:
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities borrowed
|
103,148
|
|
|
—
|
|
|
103,148
|
|
|
—
|
|
|
103,148
|
|
|||||
Receivables from brokers
|
22,521
|
|
|
—
|
|
|
22,521
|
|
|
—
|
|
|
22,521
|
|
|||||
Securities failed to deliver
|
14,898
|
|
|
—
|
|
|
14,898
|
|
|
—
|
|
|
14,898
|
|
|||||
Clearing organizations
|
25,604
|
|
|
—
|
|
|
25,604
|
|
|
—
|
|
|
25,604
|
|
|||||
Other
|
1,791
|
|
|
—
|
|
|
1,791
|
|
|
—
|
|
|
1,791
|
|
|||||
|
167,962
|
|
|
—
|
|
|
167,962
|
|
|
—
|
|
|
167,962
|
|
|||||
Receivable from customers
|
807,581
|
|
|
—
|
|
|
807,581
|
|
|
—
|
|
|
807,581
|
|
|||||
Securities purchased under agreements to resell
|
39
|
|
|
—
|
|
|
39
|
|
|
—
|
|
|
39
|
|
|||||
Notes receivable, net
|
43,413
|
|
|
—
|
|
|
43,413
|
|
|
—
|
|
|
43,413
|
|
|||||
Investments
(1)
|
69,070
|
|
|
—
|
|
|
69,070
|
|
|
—
|
|
|
69,070
|
|
(Expressed in thousands)
|
|
|
Fair Value Measurement: Liabilities
|
||||||||||||||||
|
Carrying Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||
Drafts payable
|
$
|
17,456
|
|
|
$
|
17,456
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
17,456
|
|
Bank call loans
|
50,100
|
|
|
—
|
|
|
50,100
|
|
|
—
|
|
|
50,100
|
|
|||||
Payables to brokers, dealers and clearing organizations:
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities loaned
|
247,714
|
|
|
—
|
|
|
247,714
|
|
|
—
|
|
|
247,714
|
|
|||||
Payable to brokers
|
8,667
|
|
|
—
|
|
|
8,667
|
|
|
—
|
|
|
8,667
|
|
|||||
Securities failed to receive
|
30,570
|
|
|
—
|
|
|
30,570
|
|
|
—
|
|
|
30,570
|
|
|||||
Other
|
129,987
|
|
|
—
|
|
|
129,987
|
|
|
—
|
|
|
129,987
|
|
|||||
|
416,938
|
|
|
—
|
|
|
416,938
|
|
|
—
|
|
|
416,938
|
|
|||||
Payables to customers
|
325,754
|
|
|
—
|
|
|
325,754
|
|
|
—
|
|
|
325,754
|
|
|||||
Securities sold under agreements to repurchase
|
521,837
|
|
|
—
|
|
|
521,837
|
|
|
—
|
|
|
521,837
|
|
|||||
Senior secured notes
|
200,000
|
|
|
—
|
|
|
205,356
|
|
|
—
|
|
|
205,356
|
|
(Expressed in thousands)
|
|
|
Fair Value Measurement: Assets
|
||||||||||||||||
|
Carrying Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||
Cash
|
$
|
80,175
|
|
|
$
|
80,175
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
80,175
|
|
Deposits with clearing organization
|
33,079
|
|
|
33,079
|
|
|
—
|
|
|
—
|
|
|
33,079
|
|
|||||
Receivable from brokers, dealers and clearing organizations:
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities borrowed
|
108,144
|
|
|
—
|
|
|
108,144
|
|
|
—
|
|
|
108,144
|
|
|||||
Receivables from brokers
|
20,140
|
|
|
—
|
|
|
20,140
|
|
|
—
|
|
|
20,140
|
|
|||||
Securities failed to deliver
|
7,021
|
|
|
—
|
|
|
7,021
|
|
|
—
|
|
|
7,021
|
|
|||||
Clearing organizations
|
28,777
|
|
|
—
|
|
|
28,777
|
|
|
—
|
|
|
28,777
|
|
|||||
Other
|
2,411
|
|
|
—
|
|
|
2,411
|
|
|
—
|
|
|
2,411
|
|
|||||
|
166,493
|
|
|
—
|
|
|
166,493
|
|
|
—
|
|
|
166,493
|
|
|||||
Receivable from customers
|
720,777
|
|
|
—
|
|
|
720,777
|
|
|
—
|
|
|
720,777
|
|
|||||
Securities purchased under agreements to resell
|
290
|
|
|
—
|
|
|
290
|
|
|
—
|
|
|
290
|
|
|||||
Notes receivable, net
|
44,058
|
|
|
—
|
|
|
44,058
|
|
|
—
|
|
|
44,058
|
|
|||||
Investments
(1)
|
59,765
|
|
|
—
|
|
|
59,765
|
|
|
—
|
|
|
59,765
|
|
(Expressed in thousands)
|
|
|
Fair Value Measurement: Liabilities
|
||||||||||||||||
|
Carrying Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||
Drafts payable
|
$
|
16,348
|
|
|
$
|
16,348
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
16,348
|
|
Bank call loans
|
15,000
|
|
|
—
|
|
|
15,000
|
|
|
—
|
|
|
15,000
|
|
|||||
Payables to brokers, dealers and clearing organizations:
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities loaned
|
146,815
|
|
|
—
|
|
|
146,815
|
|
|
—
|
|
|
146,815
|
|
|||||
Payable to brokers
|
158
|
|
|
—
|
|
|
158
|
|
|
—
|
|
|
158
|
|
|||||
Securities failed to receive
|
27,799
|
|
|
—
|
|
|
27,799
|
|
|
—
|
|
|
27,799
|
|
|||||
Other
|
113,628
|
|
|
—
|
|
|
113,628
|
|
|
—
|
|
|
113,628
|
|
|||||
|
288,400
|
|
|
—
|
|
|
288,400
|
|
|
—
|
|
|
288,400
|
|
|||||
Payables to customers
|
336,616
|
|
|
—
|
|
|
336,616
|
|
|
—
|
|
|
336,616
|
|
|||||
Securities sold under agreements to repurchase
|
484,218
|
|
|
—
|
|
|
484,218
|
|
|
—
|
|
|
484,218
|
|
|||||
Senior secured notes
|
200,000
|
|
|
—
|
|
|
199,722
|
|
|
—
|
|
|
199,722
|
|
OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
|
(Expressed in thousands)
|
|
|
|
|
|
||||
|
Fair Value of Derivative Instruments as of June 30, 2019
|
||||||||
|
Description
|
|
Notional
|
|
Fair Value
|
||||
Assets:
|
|
|
|
|
|
||||
Derivatives not designated as hedging instruments
(1)
|
|
|
|
|
|
||||
Other contracts
|
TBAs
|
|
$
|
12,680
|
|
|
$
|
14
|
|
|
|
|
$
|
12,680
|
|
|
$
|
14
|
|
Liabilities:
|
|
|
|
|
|
||||
Derivatives not designated as hedging instruments
(1)
|
|
|
|
|
|
||||
Commodity contracts
|
Futures
|
|
$
|
5,176,000
|
|
|
$
|
1,781
|
|
Other contracts
|
Foreign exchange forward contracts
|
|
400
|
|
|
4
|
|
||
|
TBAs
|
|
19,180
|
|
|
45
|
|
||
|
ARS purchase commitments
|
|
5,554
|
|
|
764
|
|
||
|
|
|
$
|
5,201,134
|
|
|
$
|
2,594
|
|
(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
|
(Expressed in thousands)
|
|
|
|
|
|
||||
|
Fair Value of Derivative Instruments as of December 31, 2018
|
||||||||
|
Description
|
|
Notional
|
|
Fair Value
|
||||
Assets:
|
|
|
|
|
|
||||
Derivatives not designated as hedging instruments
(1)
|
|
|
|
|
|
||||
Other contracts
|
TBAs
|
|
$
|
729,500
|
|
|
$
|
4,873
|
|
|
|
|
$
|
729,500
|
|
|
$
|
4,873
|
|
Liabilities:
|
|
|
|
|
|
||||
Derivatives not designated as hedging instruments
(1)
|
|
|
|
|
|
||||
Commodity contracts
|
Futures
|
|
$
|
4,580,800
|
|
|
$
|
807
|
|
Other contracts
|
Foreign exchange forward contracts
|
|
200
|
|
|
4
|
|
||
|
TBAs
|
|
729,500
|
|
|
4,873
|
|
||
|
ARS purchase commitments
|
|
7,305
|
|
|
1,096
|
|
||
|
|
|
$
|
5,317,805
|
|
|
$
|
6,780
|
|
(1)
|
See "Derivative Instruments and Hedging Activities" above for a description of derivative financial instruments. Such derivative instruments are not subject to master netting agreements, thus the
|
(Expressed in thousands)
|
|
|
|
|
|
|
||
|
|
The Effect of Derivative Instruments in the Income Statement
|
||||||
|
|
For the Three Months Ended June 30, 2019
|
||||||
|
|
|
|
Recognized in Income on Derivatives
(pre-tax)
|
||||
Types
|
|
Description
|
|
Location
|
|
Net Gain (Loss)
|
||
Commodity contracts
|
|
Futures
|
|
Principal transactions revenue
|
|
$
|
(2,090
|
)
|
Other contracts
|
|
Foreign exchange forward contracts
|
|
Other revenue
|
|
(4
|
)
|
|
|
|
TBAs
|
|
Principal transactions revenue
|
|
(86
|
)
|
|
|
|
ARS purchase commitments
|
|
Principal transactions revenue
|
|
350
|
|
|
|
|
|
|
|
|
$
|
(1,830
|
)
|
|
|
|
|
|
|
|
||
(Expressed in thousands)
|
|
|
|
|
|
|
||
|
|
The Effect of Derivative Instruments in the Income Statement
|
||||||
|
|
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
|
)
|
|
|
|
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 Income Statement
|
||||||
|
|
For the Six Months Ended June 30, 2019
|
||||||
|
|
|
|
Recognized in Income on Derivatives
(pre-tax)
|
||||
Types
|
|
Description
|
|
Location
|
|
Net Gain (Loss)
|
||
Commodity contracts
|
|
Futures
|
|
Principal transactions revenue
|
|
$
|
(2,666
|
)
|
Other contracts
|
|
Foreign exchange forward contracts
|
|
Other revenue
|
|
(6
|
)
|
|
|
|
TBAs
|
|
Principal transactions revenue
|
|
(76
|
)
|
|
|
|
ARS purchase commitments
|
|
Principal transactions revenue
|
|
332
|
|
|
|
|
|
|
|
|
$
|
(2,416
|
)
|
|
|
|
|
|
|
|
||
(Expressed in thousands)
|
|
|
|
|
|
|
||
|
|
The Effect of Derivative Instruments in the Income Statement
|
||||||
|
|
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
|
)
|
|
|
|
TBAs
|
|
Principal transactions revenue
|
|
196
|
|
|
|
|
Other TBAs
|
|
Other revenue
|
|
147
|
|
|
|
|
ARS purchase commitments
|
|
Principal transactions revenue
|
|
(214
|
)
|
|
|
|
|
|
|
|
$
|
1,475
|
|
OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
|
As of June 30, 2019
|
|||||||||||||||||||||||
(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
|
$
|
168,124
|
|
|
$
|
(168,085
|
)
|
|
$
|
39
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
39
|
|
Securities borrowed
(1)
|
103,148
|
|
|
—
|
|
|
103,148
|
|
|
(100,192
|
)
|
|
—
|
|
|
2,956
|
|
||||||
Total
|
$
|
271,272
|
|
|
$
|
(168,085
|
)
|
|
$
|
103,187
|
|
|
$
|
(100,192
|
)
|
|
$
|
—
|
|
|
$
|
2,995
|
|
(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
|
$
|
689,922
|
|
|
$
|
(168,085
|
)
|
|
$
|
521,837
|
|
|
$
|
(521,022
|
)
|
|
$
|
—
|
|
|
$
|
815
|
|
Securities loaned
(2)
|
247,714
|
|
|
—
|
|
|
247,714
|
|
|
(239,713
|
)
|
|
—
|
|
|
8,001
|
|
||||||
Total
|
$
|
937,636
|
|
|
$
|
(168,085
|
)
|
|
$
|
769,551
|
|
|
$
|
(760,735
|
)
|
|
$
|
—
|
|
|
$
|
8,816
|
|
(2)
|
Included in payable to brokers, dealers and clearing organizations on the condensed consolidated
|
As of December 31, 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
|
$
|
82,429
|
|
|
$
|
(82,139
|
)
|
|
$
|
290
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
290
|
|
Securities borrowed
(1)
|
108,144
|
|
|
—
|
|
|
108,144
|
|
|
(105,960
|
)
|
|
—
|
|
|
2,184
|
|
||||||
Total
|
$
|
190,573
|
|
|
$
|
(82,139
|
)
|
|
$
|
108,434
|
|
|
$
|
(105,960
|
)
|
|
$
|
—
|
|
|
$
|
2,474
|
|
(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
|
$
|
566,357
|
|
|
$
|
(82,139
|
)
|
|
$
|
484,218
|
|
|
$
|
(480,322
|
)
|
|
$
|
—
|
|
|
$
|
3,896
|
|
Securities loaned
(2)
|
146,815
|
|
|
—
|
|
|
146,815
|
|
|
(139,232
|
)
|
|
—
|
|
|
7,583
|
|
||||||
Total
|
$
|
713,172
|
|
|
$
|
(82,139
|
)
|
|
$
|
631,033
|
|
|
$
|
(619,554
|
)
|
|
$
|
—
|
|
|
$
|
11,479
|
|
(2)
|
Included in payable to brokers, dealers and clearing organizations on the condensed consolidated
|
OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
|
OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
|
(Expressed in thousands)
|
|
|
|
|
|
|
|
|
|
||||||||||
|
As of December 31, 2018
|
||||||||||||||||||
|
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
|
$
|
291,200
|
|
|
$
|
337
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
337
|
|
Private equity funds
|
7,454
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|||||
Total
|
$
|
298,654
|
|
|
$
|
345
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
345
|
|
(Expressed in thousands)
|
|
|
|
|
|
|
||||
Issued
|
|
Maturity Date
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
6.75% Senior Secured Notes
|
|
7/1/2022
|
|
$
|
200,000
|
|
|
$
|
200,000
|
|
Unamortized Debt Issuance Cost
|
|
|
|
(775
|
)
|
|
(904
|
)
|
||
|
|
|
|
$
|
199,225
|
|
|
$
|
199,096
|
|
•
|
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,
|
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
Class A Stock outstanding, beginning of period
|
12,923,517
|
|
|
13,141,103
|
|
|
12,941,809
|
|
|
13,139,203
|
|
Issued pursuant to share-based compensation plans
|
—
|
|
|
15,250
|
|
|
61,091
|
|
|
17,150
|
|
Repurchased and canceled pursuant to the stock buy-back
|
(167,209
|
)
|
|
—
|
|
|
(246,592
|
)
|
|
—
|
|
Class A Stock outstanding, end of period
|
12,756,308
|
|
|
13,156,353
|
|
|
12,756,308
|
|
|
13,156,353
|
|
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
15.85%
(required
4.5%
);
|
•
|
Tier 1 Capital ratio
15.85%
(required
6.0%
); and
|
•
|
Total Capital ratio
15.89%
(required
8.0%
).
|
(Expressed in thousands)
|
|
|
|
|
|
|
|
||||||||
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Revenue
|
|
|
|
|
|
|
|
||||||||
Private client
(1)
|
$
|
161,928
|
|
|
$
|
156,553
|
|
|
$
|
325,455
|
|
|
$
|
310,647
|
|
Asset management
(1)
|
18,622
|
|
|
17,706
|
|
|
35,208
|
|
|
35,350
|
|
||||
Capital markets
|
71,819
|
|
|
68,206
|
|
|
142,780
|
|
|
129,735
|
|
||||
Corporate/Other
|
(1,434
|
)
|
|
91
|
|
|
(738
|
)
|
|
1,354
|
|
||||
Total
|
$
|
250,935
|
|
|
$
|
242,556
|
|
|
$
|
502,705
|
|
|
$
|
477,086
|
|
Income (loss) before income taxes
|
|
|
|
|
|
|
|
||||||||
Private client
(1)
|
$
|
43,416
|
|
|
$
|
33,513
|
|
|
$
|
86,250
|
|
|
$
|
73,675
|
|
Asset management
(1)
|
5,318
|
|
|
3,958
|
|
|
7,560
|
|
|
7,676
|
|
||||
Capital markets
|
(1,801
|
)
|
|
(199
|
)
|
|
(4,448
|
)
|
|
(6,256
|
)
|
||||
Corporate/Other
|
(29,542
|
)
|
|
(24,755
|
)
|
|
(55,919
|
)
|
|
(52,957
|
)
|
||||
Total
|
$
|
17,391
|
|
|
$
|
12,517
|
|
|
$
|
33,443
|
|
|
$
|
22,138
|
|
(1)
|
Clients investing in the OAM advisory program are charged fees based on the value of AUM.
|
OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
|
OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
|
(Expressed in thousands)
|
Parent
|
|
Guarantor
subsidiaries
|
|
Non-guarantor
subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
38,235
|
|
|
$
|
475
|
|
|
$
|
32,597
|
|
|
$
|
—
|
|
|
$
|
71,307
|
|
Deposits with clearing organizations
|
—
|
|
|
—
|
|
|
65,491
|
|
|
—
|
|
|
65,491
|
|
|||||
Receivable from brokers, dealers and clearing organizations
|
—
|
|
|
—
|
|
|
167,931
|
|
|
—
|
|
|
167,931
|
|
|||||
Receivable from customers, net of allowance for credit losses of $920
|
—
|
|
|
—
|
|
|
807,581
|
|
|
—
|
|
|
807,581
|
|
|||||
Income tax receivable
|
47,917
|
|
|
22,247
|
|
|
(702
|
)
|
|
(69,462
|
)
|
|
—
|
|
|||||
Securities purchased under agreements to resell
|
—
|
|
|
—
|
|
|
39
|
|
|
—
|
|
|
39
|
|
|||||
Securities owned, including amounts pledged of $547,326 at fair value
|
—
|
|
|
1,493
|
|
|
993,877
|
|
|
—
|
|
|
995,370
|
|
|||||
Notes receivable, net of accumulated amortization and allowance for uncollectibles of $32,369 and $6,827, respectively
|
—
|
|
|
—
|
|
|
43,413
|
|
|
—
|
|
|
43,413
|
|
|||||
Furniture, equipment and leasehold improvements, net of accumulated depreciation of $90,633
|
—
|
|
|
23,297
|
|
|
9,030
|
|
|
—
|
|
|
32,327
|
|
|||||
Right-of-use lease assets, net of accumulated amortization of $12,983
|
—
|
|
|
160,202
|
|
|
6,410
|
|
|
—
|
|
|
166,612
|
|
|||||
Subordinated loan receivable
|
—
|
|
|
112,558
|
|
|
—
|
|
|
(112,558
|
)
|
|
—
|
|
|||||
Intangible assets
|
—
|
|
|
400
|
|
|
31,700
|
|
|
—
|
|
|
32,100
|
|
|||||
Goodwill
|
—
|
|
|
—
|
|
|
137,889
|
|
|
—
|
|
|
137,889
|
|
|||||
Other assets
|
125
|
|
|
1,956
|
|
|
130,275
|
|
|
—
|
|
|
132,356
|
|
|||||
Deferred tax assets
|
155
|
|
|
(29
|
)
|
|
17,573
|
|
|
(17,699
|
)
|
|
—
|
|
|||||
Investment in subsidiaries
|
692,030
|
|
|
580,920
|
|
|
—
|
|
|
(1,272,950
|
)
|
|
—
|
|
|||||
Intercompany receivables
|
(12,892
|
)
|
|
46,960
|
|
|
(7,420
|
)
|
|
(26,648
|
)
|
|
—
|
|
|||||
Total assets
|
$
|
765,570
|
|
|
$
|
950,479
|
|
|
$
|
2,435,684
|
|
|
$
|
(1,499,317
|
)
|
|
$
|
2,652,416
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Drafts payable
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
17,456
|
|
|
$
|
—
|
|
|
$
|
17,456
|
|
Bank call loans
|
—
|
|
|
—
|
|
|
50,100
|
|
|
—
|
|
|
50,100
|
|
|||||
Payable to brokers, dealers and clearing organizations
|
—
|
|
|
—
|
|
|
418,719
|
|
|
—
|
|
|
418,719
|
|
|||||
Payable to customers
|
—
|
|
|
—
|
|
|
325,754
|
|
|
—
|
|
|
325,754
|
|
|||||
Securities sold under agreements to repurchase
|
—
|
|
|
—
|
|
|
521,837
|
|
|
—
|
|
|
521,837
|
|
|||||
Securities sold but not yet purchased, at fair value
|
—
|
|
|
—
|
|
|
155,979
|
|
|
—
|
|
|
155,979
|
|
|||||
Accrued compensation
|
—
|
|
|
—
|
|
|
130,879
|
|
|
—
|
|
|
130,879
|
|
|||||
Income tax payable
|
2,440
|
|
|
22,189
|
|
|
45,683
|
|
|
(69,463
|
)
|
|
849
|
|
|||||
Accounts payable and other liabilities
|
295
|
|
|
(10,302
|
)
|
|
52,725
|
|
|
(9
|
)
|
|
42,709
|
|
|||||
Lease liabilities
|
—
|
|
|
203,240
|
|
|
7,015
|
|
|
—
|
|
|
210,255
|
|
|||||
Senior secured notes, net of debt issuance cost of $775
|
199,225
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
199,225
|
|
|||||
Subordinated indebtedness
|
—
|
|
|
—
|
|
|
112,558
|
|
|
(112,558
|
)
|
|
—
|
|
|||||
Deferred tax liabilities
|
—
|
|
|
(808
|
)
|
|
33,546
|
|
|
(17,694
|
)
|
|
15,044
|
|
|||||
Intercompany payables
|
—
|
|
|
(193,967
|
)
|
|
—
|
|
|
193,967
|
|
|
—
|
|
|||||
Total liabilities
|
201,960
|
|
|
20,352
|
|
|
1,872,251
|
|
|
(5,757
|
)
|
|
2,088,806
|
|
|||||
Stockholders' equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Total stockholders' equity
|
563,610
|
|
|
930,127
|
|
|
563,433
|
|
|
(1,493,560
|
)
|
|
563,610
|
|
|||||
Total liabilities and stockholders' equity
|
$
|
765,570
|
|
|
$
|
950,479
|
|
|
$
|
2,435,684
|
|
|
$
|
(1,499,317
|
)
|
|
$
|
2,652,416
|
|
OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
|
(Expressed in thousands)
|
Parent
|
|
Guarantor
subsidiaries
|
|
Non-guarantor
subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
53,526
|
|
|
$
|
3,826
|
|
|
$
|
33,323
|
|
|
$
|
—
|
|
|
$
|
90,675
|
|
Deposits with clearing organizations
|
—
|
|
|
—
|
|
|
67,678
|
|
|
—
|
|
|
67,678
|
|
|||||
Receivable from brokers, dealers and clearing organizations
|
—
|
|
|
—
|
|
|
166,493
|
|
|
—
|
|
|
166,493
|
|
|||||
Receivable from customers, net of allowance for credit losses of $886
|
—
|
|
|
—
|
|
|
720,777
|
|
|
—
|
|
|
720,777
|
|
|||||
Income tax receivable
|
45,733
|
|
|
23,491
|
|
|
(702
|
)
|
|
(67,508
|
)
|
|
1,014
|
|
|||||
Securities purchased under agreements to resell
|
—
|
|
|
—
|
|
|
290
|
|
|
—
|
|
|
290
|
|
|||||
Securities owned, including amounts pledged of $517,951 at fair value
|
—
|
|
|
1,358
|
|
|
836,226
|
|
|
—
|
|
|
837,584
|
|
|||||
Notes receivable, net of accumulated amortization and allowance for uncollectibles of $25,109 and $6,800, respectively
|
—
|
|
|
—
|
|
|
44,058
|
|
|
—
|
|
|
44,058
|
|
|||||
Furniture, equipment and leasehold improvements, net of accumulated depreciation of $89,182
|
—
|
|
|
20,722
|
|
|
8,266
|
|
|
—
|
|
|
28,988
|
|
|||||
Subordinated loan receivable
|
—
|
|
|
112,558
|
|
|
—
|
|
|
(112,558
|
)
|
|
—
|
|
|||||
Intangible assets
|
—
|
|
|
400
|
|
|
31,700
|
|
|
—
|
|
|
32,100
|
|
|||||
Goodwill
|
—
|
|
|
—
|
|
|
137,889
|
|
|
—
|
|
|
137,889
|
|
|||||
Other assets
|
135
|
|
|
2,581
|
|
|
110,052
|
|
|
—
|
|
|
112,768
|
|
|||||
Deferred tax assets
|
1
|
|
|
455
|
|
|
18,494
|
|
|
(18,950
|
)
|
|
—
|
|
|||||
Investment in subsidiaries
|
661,837
|
|
|
546,704
|
|
|
—
|
|
|
(1,208,541
|
)
|
|
—
|
|
|||||
Intercompany receivables
|
(14,211
|
)
|
|
46,840
|
|
|
(6,299
|
)
|
|
(26,330
|
)
|
|
—
|
|
|||||
Total assets
|
$
|
747,021
|
|
|
$
|
758,935
|
|
|
$
|
2,168,245
|
|
|
$
|
(1,433,887
|
)
|
|
$
|
2,240,314
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Drafts payable
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
16,348
|
|
|
$
|
—
|
|
|
$
|
16,348
|
|
Bank call loans
|
—
|
|
|
—
|
|
|
15,000
|
|
|
—
|
|
|
15,000
|
|
|||||
Payable to brokers, dealers and clearing organizations
|
—
|
|
|
—
|
|
|
289,207
|
|
|
—
|
|
|
289,207
|
|
|||||
Payable to customers
|
—
|
|
|
—
|
|
|
336,616
|
|
|
—
|
|
|
336,616
|
|
|||||
Securities sold under agreements to repurchase
|
—
|
|
|
—
|
|
|
484,218
|
|
|
—
|
|
|
484,218
|
|
|||||
Securities sold but not yet purchased, at fair value
|
—
|
|
|
—
|
|
|
85,446
|
|
|
—
|
|
|
85,446
|
|
|||||
Accrued compensation
|
—
|
|
|
—
|
|
|
167,348
|
|
|
—
|
|
|
167,348
|
|
|||||
Accounts payable and other liabilities
|
163
|
|
|
31,653
|
|
|
55,823
|
|
|
(9
|
)
|
|
87,630
|
|
|||||
Income tax payable
|
2,440
|
|
|
22,189
|
|
|
42,878
|
|
|
(67,507
|
)
|
|
—
|
|
|||||
Senior secured notes, net of debt issuance cost of $904
|
199,096
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
199,096
|
|
|||||
Subordinated indebtedness
|
—
|
|
|
—
|
|
|
112,558
|
|
|
(112,558
|
)
|
|
—
|
|
|||||
Deferred tax liabilities
|
—
|
|
|
—
|
|
|
33,029
|
|
|
(18,946
|
)
|
|
14,083
|
|
|||||
Intercompany payables
|
—
|
|
|
26,334
|
|
|
—
|
|
|
(26,334
|
)
|
|
—
|
|
|||||
Total liabilities
|
201,699
|
|
|
80,176
|
|
|
1,638,471
|
|
|
(225,354
|
)
|
|
1,694,992
|
|
|||||
Stockholders' equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Total stockholders' equity
|
545,322
|
|
|
678,759
|
|
|
529,774
|
|
|
(1,208,533
|
)
|
|
545,322
|
|
|||||
Total liabilities and stockholders' equity
|
$
|
747,021
|
|
|
$
|
758,935
|
|
|
$
|
2,168,245
|
|
|
$
|
(1,433,887
|
)
|
|
$
|
2,240,314
|
|
OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
|
(Expressed in thousands)
|
Parent
|
|
Guarantor
subsidiaries
|
|
Non-guarantor
subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
REVENUES
|
|
|
|
|
|
|
|
|
|
||||||||||
Commissions
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
80,896
|
|
|
$
|
—
|
|
|
$
|
80,896
|
|
Advisory fees
|
—
|
|
|
—
|
|
|
81,067
|
|
|
(360
|
)
|
|
80,707
|
|
|||||
Investment banking
|
—
|
|
|
—
|
|
|
32,006
|
|
|
—
|
|
|
32,006
|
|
|||||
Bank deposit sweep income
|
—
|
|
|
—
|
|
|
31,830
|
|
|
—
|
|
|
31,830
|
|
|||||
Interest
|
91
|
|
|
2,060
|
|
|
13,473
|
|
|
(2,074
|
)
|
|
13,550
|
|
|||||
Principal transactions, net
|
—
|
|
|
40
|
|
|
3,005
|
|
|
—
|
|
|
3,045
|
|
|||||
Other
|
—
|
|
|
1
|
|
|
8,899
|
|
|
1
|
|
|
8,901
|
|
|||||
Total revenue
|
91
|
|
|
2,101
|
|
|
251,176
|
|
|
(2,433
|
)
|
|
250,935
|
|
|||||
EXPENSES
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and related expenses
|
380
|
|
|
—
|
|
|
155,402
|
|
|
1
|
|
|
155,783
|
|
|||||
Communications and technology
|
52
|
|
|
—
|
|
|
20,447
|
|
|
—
|
|
|
20,499
|
|
|||||
Occupancy and equipment costs
|
—
|
|
|
—
|
|
|
15,573
|
|
|
—
|
|
|
15,573
|
|
|||||
Clearing and exchange fees
|
—
|
|
|
—
|
|
|
5,678
|
|
|
—
|
|
|
5,678
|
|
|||||
Interest
|
3,375
|
|
|
—
|
|
|
11,890
|
|
|
(2,073
|
)
|
|
13,192
|
|
|||||
Other
|
234
|
|
|
122
|
|
|
22,824
|
|
|
(361
|
)
|
|
22,819
|
|
|||||
Total expenses
|
4,041
|
|
|
122
|
|
|
231,814
|
|
|
(2,433
|
)
|
|
233,544
|
|
|||||
Income (loss) before income taxes
|
(3,950
|
)
|
|
1,979
|
|
|
19,362
|
|
|
—
|
|
|
17,391
|
|
|||||
Income taxes
|
(995
|
)
|
|
510
|
|
|
5,501
|
|
|
—
|
|
|
5,016
|
|
|||||
Net income (loss)
|
(2,955
|
)
|
|
1,469
|
|
|
13,861
|
|
|
—
|
|
|
12,375
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity in earnings of subsidiaries
|
15,330
|
|
|
13,861
|
|
|
—
|
|
|
(29,191
|
)
|
|
—
|
|
|||||
Net income
|
12,375
|
|
|
15,330
|
|
|
13,861
|
|
|
(29,191
|
)
|
|
12,375
|
|
|||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
361
|
|
|
—
|
|
|
361
|
|
|||||
Total comprehensive income
|
$
|
12,375
|
|
|
$
|
15,330
|
|
|
$
|
14,222
|
|
|
$
|
(29,191
|
)
|
|
$
|
12,736
|
|
OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
|
(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
|
|
|
27,782
|
|
|
(328
|
)
|
|
28,581
|
|
|||||
Total expenses
|
4,224
|
|
|
849
|
|
|
227,465
|
|
|
(2,499
|
)
|
|
230,039
|
|
|||||
Income (loss) before income taxes
|
(4,221
|
)
|
|
1,306
|
|
|
15,432
|
|
|
—
|
|
|
12,517
|
|
|||||
Income taxes
|
(1,065
|
)
|
|
369
|
|
|
4,358
|
|
|
—
|
|
|
3,662
|
|
|||||
Net income (loss)
|
(3,156
|
)
|
|
937
|
|
|
11,074
|
|
|
—
|
|
|
8,855
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity in earnings of subsidiaries
|
12,011
|
|
|
11,074
|
|
|
—
|
|
|
(23,085
|
)
|
|
—
|
|
|||||
Net income
|
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
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
160,305
|
|
|
$
|
—
|
|
|
$
|
160,305
|
|
Advisory fees
|
—
|
|
|
—
|
|
|
155,049
|
|
|
(695
|
)
|
|
154,354
|
|
|||||
Investment banking
|
—
|
|
|
—
|
|
|
60,049
|
|
|
—
|
|
|
60,049
|
|
|||||
Bank deposit sweep income
|
—
|
|
|
—
|
|
|
65,798
|
|
|
—
|
|
|
65,798
|
|
|||||
Interest
|
175
|
|
|
4,122
|
|
|
26,127
|
|
|
(4,147
|
)
|
|
26,277
|
|
|||||
Principal transactions, net
|
—
|
|
|
101
|
|
|
14,394
|
|
|
(12
|
)
|
|
14,483
|
|
|||||
Other
|
—
|
|
|
2
|
|
|
21,436
|
|
|
1
|
|
|
21,439
|
|
|||||
Total revenue
|
175
|
|
|
4,225
|
|
|
503,158
|
|
|
(4,853
|
)
|
|
502,705
|
|
|||||
EXPENSES
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and related expenses
|
825
|
|
|
—
|
|
|
315,318
|
|
|
(5
|
)
|
|
316,138
|
|
|||||
Communications and technology
|
91
|
|
|
—
|
|
|
40,494
|
|
|
—
|
|
|
40,585
|
|
|||||
Occupancy and equipment costs
|
—
|
|
|
—
|
|
|
30,846
|
|
|
—
|
|
|
30,846
|
|
|||||
Clearing and exchange fees
|
—
|
|
|
—
|
|
|
11,010
|
|
|
—
|
|
|
11,010
|
|
|||||
Interest
|
6,750
|
|
|
—
|
|
|
23,575
|
|
|
(4,147
|
)
|
|
26,178
|
|
|||||
Other
|
550
|
|
|
244
|
|
|
44,412
|
|
|
(701
|
)
|
|
44,505
|
|
|||||
Total expenses
|
8,216
|
|
|
244
|
|
|
465,655
|
|
|
(4,853
|
)
|
|
469,262
|
|
|||||
Income (loss) before income taxes
|
(8,041
|
)
|
|
3,981
|
|
|
37,503
|
|
|
—
|
|
|
33,443
|
|
|||||
Income taxes
|
(2,338
|
)
|
|
1,436
|
|
|
10,776
|
|
|
—
|
|
|
9,874
|
|
|||||
Net income (loss)
|
(5,703
|
)
|
|
2,545
|
|
|
26,727
|
|
|
—
|
|
|
23,569
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity in earnings of subsidiaries
|
29,272
|
|
|
26,726
|
|
|
—
|
|
|
(55,998
|
)
|
|
—
|
|
|||||
Net income
|
23,569
|
|
|
29,271
|
|
|
26,727
|
|
|
(55,998
|
)
|
|
23,569
|
|
|||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
924
|
|
|
—
|
|
|
924
|
|
|||||
Total comprehensive income
|
$
|
23,569
|
|
|
$
|
29,271
|
|
|
$
|
27,651
|
|
|
$
|
(55,998
|
)
|
|
$
|
24,493
|
|
(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
|
|
|
50,131
|
|
|
(687
|
)
|
|
51,211
|
|
|||||
Total expenses
|
8,351
|
|
|
1,102
|
|
|
450,528
|
|
|
(5,033
|
)
|
|
454,948
|
|
|||||
Income (loss) before income taxes
|
(8,348
|
)
|
|
3,209
|
|
|
27,277
|
|
|
—
|
|
|
22,138
|
|
|||||
Income taxes
|
(2,105
|
)
|
|
633
|
|
|
8,050
|
|
|
—
|
|
|
6,578
|
|
|||||
Net income (loss)
|
(6,243
|
)
|
|
2,576
|
|
|
19,227
|
|
|
—
|
|
|
15,560
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity in earnings of subsidiaries
|
21,803
|
|
|
19,227
|
|
|
—
|
|
|
(41,030
|
)
|
|
—
|
|
|||||
Net income
|
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
|
|
OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
|
(Expressed in thousands)
|
Parent
|
|
Guarantor
subsidiaries
|
|
Non-guarantor
subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash used in operating activities
|
$
|
(5,060
|
)
|
|
$
|
(3,351
|
)
|
|
$
|
(29,580
|
)
|
|
$
|
—
|
|
|
$
|
(37,991
|
)
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchase of furniture, equipment and leasehold improvements
|
—
|
|
|
—
|
|
|
(6,941
|
)
|
|
—
|
|
|
(6,941
|
)
|
|||||
Purchase of tangible assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Proceeds from the settlement of Company-owned life insurance
|
—
|
|
|
—
|
|
|
695
|
|
|
—
|
|
|
695
|
|
|||||
Cash used in investing activities
|
—
|
|
|
—
|
|
|
(6,246
|
)
|
|
—
|
|
|
(6,246
|
)
|
|||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash dividends paid on Class A non-voting and Class B voting common stock
|
(2,865
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,865
|
)
|
|||||
Repurchase of Class A non-voting common stock
|
(6,352
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,352
|
)
|
|||||
Payments for employee taxes withheld related to vested share-based awards
|
(1,014
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,014
|
)
|
|||||
Decrease in bank call loans, net
|
—
|
|
|
—
|
|
|
35,100
|
|
|
—
|
|
|
35,100
|
|
|||||
Cash provided by (used in) financing activities
|
(10,231
|
)
|
|
—
|
|
|
35,100
|
|
|
—
|
|
|
24,869
|
|
|||||
Net decrease in cash and cash equivalents
|
(15,291
|
)
|
|
(3,351
|
)
|
|
(726
|
)
|
|
—
|
|
|
(19,368
|
)
|
|||||
Cash and cash equivalents, beginning of the period
|
53,526
|
|
|
3,826
|
|
|
33,323
|
|
|
—
|
|
|
90,675
|
|
|||||
Cash and cash equivalents, end of the period
|
$
|
38,235
|
|
|
$
|
475
|
|
|
$
|
32,597
|
|
|
$
|
—
|
|
|
$
|
71,307
|
|
OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
|
(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 intangible 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)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
||||||||||||||||||
|
2019
|
|
2018
|
|
% Change
|
|
2019
|
|
2018
|
|
% Change
|
||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commissions
|
$
|
80,896
|
|
|
$
|
82,850
|
|
|
(2.4
|
)
|
|
$
|
160,305
|
|
|
$
|
166,257
|
|
|
(3.6
|
)
|
Advisory fees
|
80,707
|
|
|
77,270
|
|
|
4.4
|
|
|
154,354
|
|
|
154,818
|
|
|
(0.3
|
)
|
||||
Investment banking
|
32,006
|
|
|
27,904
|
|
|
14.7
|
|
|
60,049
|
|
|
56,114
|
|
|
7.0
|
|
||||
Bank deposit sweep income
|
31,830
|
|
|
28,853
|
|
|
10.3
|
|
|
65,798
|
|
|
54,150
|
|
|
21.5
|
|
||||
Interest
|
13,550
|
|
|
13,056
|
|
|
3.8
|
|
|
26,277
|
|
|
25,283
|
|
|
3.9
|
|
||||
Principal transactions, net
|
3,045
|
|
|
6,400
|
|
|
(52.4
|
)
|
|
14,483
|
|
|
9,126
|
|
|
58.7
|
|
||||
Other
|
8,901
|
|
|
6,223
|
|
|
43.0
|
|
|
21,439
|
|
|
11,338
|
|
|
89.1
|
|
||||
Total revenue
|
250,935
|
|
|
242,556
|
|
|
3.5
|
|
|
502,705
|
|
|
477,086
|
|
|
5.4
|
|
||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and related expenses
|
155,783
|
|
|
151,871
|
|
|
2.6
|
|
|
316,138
|
|
|
304,975
|
|
|
3.7
|
|
||||
Communications and technology
|
20,499
|
|
|
17,997
|
|
|
13.9
|
|
|
40,585
|
|
|
36,685
|
|
|
10.6
|
|
||||
Occupancy and equipment costs
|
15,573
|
|
|
14,901
|
|
|
4.5
|
|
|
30,846
|
|
|
30,329
|
|
|
1.7
|
|
||||
Clearing and exchange fees
|
5,678
|
|
|
5,780
|
|
|
(1.8
|
)
|
|
11,010
|
|
|
11,876
|
|
|
(7.3
|
)
|
||||
Interest
|
13,192
|
|
|
10,909
|
|
|
20.9
|
|
|
26,178
|
|
|
19,872
|
|
|
31.7
|
|
||||
Other
|
22,819
|
|
|
28,581
|
|
|
(20.2
|
)
|
|
44,505
|
|
|
51,211
|
|
|
(13.1
|
)
|
||||
Total expenses
|
233,544
|
|
|
230,039
|
|
|
1.5
|
|
|
469,262
|
|
|
454,948
|
|
|
3.1
|
|
||||
Income before income taxes
|
17,391
|
|
|
12,517
|
|
|
38.9
|
|
|
33,443
|
|
|
22,138
|
|
|
51.1
|
|
||||
Income taxes
|
5,016
|
|
|
3,662
|
|
|
37.0
|
|
|
9,874
|
|
|
6,578
|
|
|
50.1
|
|
||||
Net income
|
$
|
12,375
|
|
|
$
|
8,855
|
|
|
39.8
|
|
|
$
|
23,569
|
|
|
$
|
15,560
|
|
|
51.5
|
|
(Expressed in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||||||||
|
2019
|
|
2018
|
|
% Change
|
|
2019
|
|
2018
|
|
% Change
|
||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Private Client
|
$
|
161,928
|
|
|
$
|
156,553
|
|
|
3.4
|
|
|
$
|
325,455
|
|
|
$
|
310,647
|
|
|
4.8
|
|
Asset Management
|
18,622
|
|
|
17,706
|
|
|
5.2
|
|
|
35,208
|
|
|
35,350
|
|
|
(0.4
|
)
|
||||
Capital Markets
|
71,819
|
|
|
68,206
|
|
|
5.3
|
|
|
142,780
|
|
|
129,735
|
|
|
10.1
|
|
||||
Corporate/Other
|
(1,434
|
)
|
|
91
|
|
|
*
|
|
|
(738
|
)
|
|
1,354
|
|
|
*
|
|
||||
Total
|
$
|
250,935
|
|
|
$
|
242,556
|
|
|
3.5
|
|
|
$
|
502,705
|
|
|
$
|
477,086
|
|
|
5.4
|
|
Income (loss) before income taxes
|
|
|
|
|
|
|
|||||||||||||||
Private Client
|
$
|
43,416
|
|
|
$
|
33,513
|
|
|
29.5
|
|
|
$
|
86,250
|
|
|
$
|
73,675
|
|
|
17.1
|
|
Asset Management
|
5,318
|
|
|
3,958
|
|
|
34.4
|
|
|
7,560
|
|
|
7,676
|
|
|
(1.5
|
)
|
||||
Capital Markets
|
(1,801
|
)
|
|
(199
|
)
|
|
(805.0
|
)
|
|
(4,448
|
)
|
|
(6,256
|
)
|
|
(28.9
|
)
|
||||
Corporate/Other
|
(29,542
|
)
|
|
(24,755
|
)
|
|
(19.3
|
)
|
|
(55,919
|
)
|
|
(52,957
|
)
|
|
5.6
|
|
||||
Total
|
$
|
17,391
|
|
|
$
|
12,517
|
|
|
38.9
|
|
|
$
|
33,443
|
|
|
$
|
22,138
|
|
|
51.1
|
|
•
|
Client assets under administration were
$87.3 billion
at
June 30, 2019
, compared with $80.1 billion at December 31, 2018, an increase of 9.0%
|
•
|
Financial adviser headcount was
1,036
at the end of the second quarter of 2019, down from 1,083 at the end of the second quarter of 2018. The decline in financial adviser headcount since the second quarter of 2018 has resulted from the Company's emphasis on adviser productivity as well as retirements and attrition.
|
•
|
Retail commissions were $47.1 million for the second quarter of 2019, a decrease of 4.8% from the second quarter of 2018.
|
•
|
Advisory fee revenue on traditional and alternative managed products was $62.1 million for the second quarter of 2019, an increase of 3.8% from the second quarter of 2018 (see Asset Management below for further information). The increase in advisory fees was due to an increase in assets under management ("AUM") at March 31, 2019 as a result of the increase in the equities markets and net new assets during the first quarter of 2019.
|
•
|
Bank deposit sweep income was $31.8 million for the second quarter of 2019, an increase of 10.3% compared with $28.9 million for the second quarter of 2018 due to higher short-term interest rates during the second quarter of 2019.
|
•
|
Advisory fee revenue on traditional and alternative managed products was $18.6 million for the second quarter of 2019, an increase of 6.3% from the second quarter of 2018 primarily due to higher AUM at March 31, 2019.
|
•
|
Advisory fees are calculated based on the value of client AUM at the end of the prior quarter which totaled $29.5 billion at March 31, 2019 ($28.2 billion at March 31, 2018) and are allocated between the Private Client and Asset Management business segments.
|
•
|
AUM increased 5.2% to
$30.2 billion
at
June 30, 2019
, a record high, compared with $28.7 billion at
June 30, 2018
, which is the basis for advisory fee billings for the third quarter of 2019. The increase in AUM was comprised of asset appreciation of $0.6 billion and a positive net contribution 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. Valuation is based on collateral requirements for a series of contracts representing the investment strategy.
|
•
|
Institutional equities commissions increased 6.9% to $24.8 million for the second quarter of 2019 compared with the second quarter of 2018 due to strong execution-driven commission growth in block trading and better recognition and monetization of our high value research content.
|
•
|
Advisory fees earned from investment banking activities increased 62.5% to $13.0 million for the second quarter of 2019 compared with $8.0 million for the second quarter of 2018 due to an increase in mergers and acquisitions transactions during the second quarter of 2019.
|
•
|
Equities underwriting fees increased modestly to $15.3 million for the second quarter of 2019 compared with $15.2 million for the second quarter of 2018 as the Company participated in more transactions with lower economics due to a decrease in the number of lead managed deals during the second quarter of 2019.
|
•
|
Revenue from taxable fixed income decreased marginally to $15.2 million during the second quarter of 2019 from $15.3 million during the second quarter of 2018 due to lower trading income in taxable fixed income products partially offset by higher institutional fixed income commissions.
|
•
|
Revenue from public finance and municipal trading decreased to $4.7 million during the second quarter of 2019 from $5.7 million during the second quarter of 2018 due to lower commission income partially offset by higher municipal trading income during the second quarter of 2019.
|
(Expressed in thousands)
|
|
|
|
||||
|
For the Six Months Ended June 30,
|
||||||
|
2019
|
|
2018
|
||||
Cash (used in) provided by operating activities
|
$
|
(37,991
|
)
|
|
$
|
11,311
|
|
Cash used in investing activities
|
(6,246
|
)
|
|
(4,347
|
)
|
||
Cash provided by (used in) financing activities
|
24,869
|
|
|
(16,157
|
)
|
||
Net decrease in cash and cash equivalents
|
$
|
(19,368
|
)
|
|
$
|
(9,193
|
)
|
(Expressed in thousands)
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
Less than 1
Year
|
|
|
|
|
|
More than 5
Years
|
||||||||||
|
Total
|
|
|
1-3 Years
|
|
3-5 Years
|
|
||||||||||||
Operating Lease Obligations
(1)(2)
|
$
|
294,427
|
|
|
$
|
41,404
|
|
|
$
|
104,305
|
|
|
$
|
51,855
|
|
|
$
|
96,863
|
|
Future Lease Obligation
(3)
|
13,950
|
|
|
569
|
|
|
3,240
|
|
|
2,846
|
|
|
7,295
|
|
|||||
Committed Capital
|
1,399
|
|
|
1,399
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Senior Secured Notes
(4)(5)
|
240,538
|
|
|
13,500
|
|
|
27,000
|
|
|
200,038
|
|
|
—
|
|
|||||
ARS Purchase Commitments
(6)
|
5,554
|
|
|
2,000
|
|
|
3,554
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
555,868
|
|
|
$
|
58,872
|
|
|
$
|
138,099
|
|
|
$
|
254,739
|
|
|
$
|
104,158
|
|
(1)
|
See note 3 to the condensed consolidated financial statements appearing in Item 1 for additional information.
|
(2)
|
Includes interest liability of $84.2 million.
|
(3)
|
Obligation includes legally binding minimum lease payments for leases signed but not yet commenced.
|
(4)
|
See note 10 to the condensed consolidated financial statements appearing in Item 1 for additional information.
|
(5)
|
Includes interest payable of $40.5 million through maturity.
|
(6)
|
See note 12 to the condensed consolidated financial statements appearing in Item 1 for additional information.
|
(a)
|
There were no issuances of shares of Class A Stock during the second quarter of 2019 pursuant to the Company's share-based compensation plans. Such issuances are 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)
|
|
1 Year Oppenheimer Chart |
1 Month Oppenheimer Chart |
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