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Supplemental Guarantor Condensed Consolidated Financial Statements (unaudited)

3 Months Ended

Mar. 31, 2012

Supplemental Guarantor Condensed Consolidated Financial Statements [Abstract]

Supplemental Guarantor Condensed Consolidated Financial Statements (unaudited)

13. Supplemental Guarantor Consolidated Financial Statements (unaudited)

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

Each Guarantor will be automatically and unconditionally released and discharged upon: the sale, exchange or transfer of the capital stock of a Guarantor and the Guarantor ceases to be a direct or indirect subsidiary of the Company if such sale does not constitute an asset sale under the indenture for the Notes or does not constitute an asset sale effected in compliance with the asset sale and merger covenants of the debenture for the Notes; a Guarantor being dissolved or liquidated; a Guarantor being designated unrestricted in compliance with the applicable provisions of the Notes; or the exercise by the Company of its legal defeasance option or covenant defeasance option or the discharge of the Company’s obligations under the indenture for the Notes in accordance with the terms of such indenture.

OPPENHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATING BALANCE SHEET (unaudited)

AS OF MARCH 31, 2012


Expressed in thousands of dollars.	Parent			Guarantor subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	667		$	32,200		$	53,943		$	—		$	86,810
Cash and securities segregated for regulatory and other purposes		—			—			32,369			—			32,369
Deposits with clearing organizations		—			—			56,137			—			56,137
Receivable from brokers and clearing organizations		—			—			341,230			—			341,230
Receivable from customers, net of allowance for credit losses of $2,716		—			—			872,020			—			872,020
Income taxes receivable		8,661			28,821			(702	)		(34,053	)		2,727
Securities purchased under agreements to resell		—			—			489			—			489
Securities owned, including amounts pledged of $102,501, at fair value		—			18,554			927,870			—			946,424
Subordinated loan receivable		—			112,558			—			(112,558	)		—
Notes receivable, net		—			—			53,586			—			53,586
Office facilities, net		—			—			25,319			—			25,319
Deferred tax asset		(96	)		309			26,955			(27,168	)		—
Intangible assets, net		—			—			32,377			—			32,377
Goodwill		—			—			137,889			—			137,889
Other		3,992			1,090			157,011						162,093
Investment in subsidiaries		494,497			885,173			(196,929	)		(1,182,741	)		—
Intercompany receivables		198,951			(145,881	)		(16,455	)		(36,615	)		—

	$	706,672		$	932,824		$	2,503,109		$	(1,393,135	)	$	2,749,470

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Drafts payable	$	—		$	—		$	41,192		$	—		$	41,192
Bank call loans		—			—			92,600			—			92,600
Payable to brokers and clearing organizations		—			—			374,068			—			374,068
Payable to customers		—			—			543,793			—			543,793
Securities sold under agreements to repurchase		—			—			647,793			—			647,793
Securities sold, but not yet purchased, at fair value		—			—			90,408			—			90,408
Accrued compensation		—			—			93,088			—			93,088
Accounts payable and other liabilities		8,172			6,919			138,462			152			153,705
Income taxes payable		2,440			22,189			9,424			(34,053	)		—
Senior secured note		195,000			—			—			—			195,000
Subordinated indebtedness		—			—			112,558			(112,558	)		—
Deferred income tax, net		—			(2,741	)		33,545			(27,168	)		3,636
Excess of fair value of acquired assets over cost		—			—			7,020			—			7,020
Intercompany payables		—			36,606			—			(36,606	)		—

		205,612			62,973			2,183,951			(210,233	)		2,242,303

Stockholders’ equity attributable to
Oppenheimer Holdings Inc.		501,060			869,851			313,051			(1,182,902	)		501,060
Noncontrolling interest		—			—			6,107			—			6,107
Stockholders’ equity		501,060			869,851			319,158			(1,182,902	)		507,167

	$	706,672		$	932,824		$	2,503,109		$	(1,393,135	)	$	2,749,470

OPPENHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATING BALANCE SHEET (unaudited)

AS OF DECEMBER 31, 2011


				Guarantor			Non-Guarantor
Expressed in thousands of dollars.	Parent			subsidiaries			Subsidiaries			Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	2,555		$	11,882		$	55,892		$	—		$	70,329
Cash and securities segregated for regulatory and other purposes		—			—			30,086			—			30,086
Deposits with clearing organizations		—			—			35,816			—			35,816
Receivable from brokers and clearing organizations		—			20			288,093						288,113
Receivable from customers, net of allowance for credit losses of $2,716		—			—			837,822			—			837,822
Income taxes receivable		6,785			30,942			(702	)		(30,282	)		6,743
Securities purchased under agreements to resell		—			—			847,688			—			847,688
Securities owned, including amounts pledged of $102,501, at fair value		—			17,811			906,730			—			924,541
Subordinated loan receivable		—			112,558			—			(112,558	)		—
Notes receivable, net		—			—			54,044			—			54,044
Office facilities, net		—			—			16,976			—			16,976
Deferred tax asset		(50	)		309			21,130			(21,389	)		—
Intangible assets, net		—			—			35,589			—			35,589
Goodwill		—			—			137,889			—			137,889
Other		4,055			1,533			236,215						241,803
Investment in subsidiaries		496,512			896,819			(199,063	)		(1,194,268	)		—
Intercompany receivables		199,387			(128,746	)		(33,506	)		(37,135	)		—

	$	709,244		$	943,128		$	3,270,699		$	(1,395,632	)	$	3,527,439

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Drafts payable	$	—		$	—		$	51,848		$	—		$	51,848
Bank call loans		—			—			27,500			—			27,500
Payable to brokers and clearing organizations		—			—			335,610			—			335,610
Payable to customers		—			—			479,896			—			479,896
Securities sold under agreements to repurchase		—			—			1,508,493			—			1,508,493
Securities sold, but not yet purchased, at fair value		—			—			69,415			—			69,415
Accrued compensation		—			—			144,283			—			144,283
Accounts payable and other liabilities		3,734			6,915			174,318			(298	)		184,669
Income taxes payable		2,440			22,189			5,653			(30,282	)		—
Senior secured note		195,000			—			—			—			195,000
Subordinated indebtedness		—			—			112,558			(112,558	)		—
Deferred income tax, net		—			(1,855	)		33,546			(21,389	)		10,302
Excess of fair value of acquired assets over cost		—			—			7,020			—			7,020
Intercompany payables		—			37,126			—			(37,126	)		—

		201,174			64,375			2,950,140			(201,653	)		3,014,036

Stockholders’ equity attributable to
Oppenheimer Holdings Inc.		508,070			878,753			315,226			(1,193,979	)		508,070
Noncontrolling interest		—			—			5,333			—			5,333
Stockholders’ equity		508,070			878,753			320,559			(1,193,979	)		513,403

	$	709,244		$	943,128		$	3,270,699		$	(1,395,632	)	$	3,527,439

OPPENHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (unaudited)

FOR THE TWELVE MONTHS ENDED MARCH 31, 2012


Expressed in thousands of dollars.	Parent			Guarantor subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
REVENUE
Commissions	$	—		$	—		$	125,634		$	—		$	125,634
Principal transactions, net		—			488			12,067			—			12,555
Interest		—			3,097			12,996			(2,700	)		13,393
Investment banking		—			—			20,087			—			20,087
Advisory fees		—			—			50,714			(637	)		50,077
Other		—			—			16,468			—			16,468

		—			3,585			237,966			(3,337	)		238,214

EXPENSES
Compensation and related expenses		128			—			158,523			—			158,651
Clearing and exchange fees		—			—			6,031			—			6,031
Communications and technology		—			—			16,138			—			16,138
Occupancy and equipment costs		—			(42	)		24,386			—			24,344
Interest		4,374			66			7,052			(2,700	)		8,792
Other		343			18			31,023			(637	)		30,747

		4,845			42			243,153			(3,337	)		244,703

Profit (loss) before income taxes		(4,845	)		3,543			(5,187	)		—			(6,489	)
Income tax provision (benefit)		(1,832	)		1,233			(2,007	)		—			(2,606	)
Net profit (loss) for the period		(3,013	)		2,310			(3,180	)		—			(3,883	)
Less net profit attributable to non-controlling interest, net of tax		—			—			(774	)		—			(774	)
Equity in subsidiaries		(1,644	)		—			—			1,644			—

Net profit (loss) attributable to Oppenheimer Holdings Inc.	$	(4,657	)	$	2,310		$	(3,954	)	$	1,644		$	(4,657	)


Comprehensive income (loss)	$	2		$	—		$	(368	)	$	—		$	(366	)

OPPENHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (unaudited)

FOR THE THREE MONTHS ENDED MARCH 31, 2011


Expressed in thousands of dollars.	Parent			Guarantor subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
REVENUE
Commissions	$	—		$	—	$	136,855		$	—		$	136,855
Principal transactions, net		—			—		10,991			—			10,991
Interest		—			1,748		14,789			(1,748	)		14,789
Investment banking		—			—		28,441			—			28,441
Advisory fees		—			—		49,032			(583	)		48,449
Other		—			—		13,892			—			13,892

		—			1,748		254,000			(2,331	)		253,417

EXPENSES
Compensation and related expenses		104			—		170,311			—			170,415
Clearing and exchange fees		—			—		6,313			—			6,313
Communications and technology		14			—		15,925			—			15,939
Occupancy and equipment costs		—			—		18,546			—			18,546
Interest		—			1,503		8,019			(1,748	)		7,774
Other		214			181		24,789			(583	)		24,601

		332			1,684		243,903			(2,331	)		243,588

Profit (loss) before income taxes		(332	)		64		10,097			—			9,829
Income tax provision (benefit)		(134	)		54		4,148			—			4,068
Net profit (loss) for the period		(198	)		10		5,949			—			5,761
Less net profit attributable to non-controlling interest, net of tax		—			—		(675	)		—			(675	)
Equity in subsidiaries		5,284			—		—			(5,284	)		—

Net profit (loss) attributable to Oppenheimer Holdings Inc.	$	5,086		$	10	$	5,274		$	(5,284	)	$	5,086


Comprehensive income (loss)	$	(1	)	$	72	$	240		$	—		$	311

OPPNEHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (unaudited)

FOR THE THREE MONTHS ENDED MARCH 31, 2012


Expressed in thousands of dollars	Parent			Guarantor subsidiaries		Non-Guarantor Subsidiaries			Eliminations		Consolidated
Cash flows from operations:
Net income (loss) for the period	$	(3,013	)	$	2,310	$	(3,180	)	$	—	$	(3,883	)
Adjustments to reconcile net profit (loss) to net cash used in operating activities:
Depreciation and amortization		—			—		2,845			—		2,845
Deferred income tax		—			—		(6,666	)		—		(6,666	)
Amortization of notes receivable		—			—		4,870			—		4,870
Amortization of debt issuance costs		—			—		99			—		99
Amortization of intangible assets		—			—		3,212			—		3,212
Provision for credit losses		—			—		178			—		178
Share-based compensation expense		—			—		1,259			—		1,259
Changes in operating assets and liabilities		4,130			18,008		(64,955	)		—		(42,817	)

Cash flow provided by (used in) continuing operations		1,117			20,318		(62,338	)		—		(40,903	)

Cash flows from Investment activities
Purchase of office facilities		—			—		(4,711	)		—		(4,711	)

Cash used in investing activities		—			—		(4,711	)		—		(4,711	)

Cash flows from financing activities
Cash dividends paid on Class A non-voting and Class B voting common stock		(1,495	)		—		—			—		(1,495	)
Issuance of Class A non-voting common stock		—			—		—			—		—
Repurchase of Class A non-voting common stock		(1,551	)		—		—			—		(1,551	)
Debt Issuance Cost		—			—		—			—		—
Issuance of senior secured note		—			—		—			—		—
Buy back of senior secured note		—			—		—			—		—
Repayments of senior secured credit note		—			—		—			—		—
Repayments of senior secured credit note		—			—		—			—		—
Other financing activities		41			—		65,100			—		65,141

Cash flow provided by (used in) financing activities		(3,005	)		—		65,100			—		62,095

Net increase (decrease) in cash and cash equivalents		(1,888	)		20,318		(1,949	)		—		16,481
Cash and cash equivalents, beginning of the period		2,555			11,882		55,892			—		70,329

Cash and cash equivalents, end of the period	$	667		$	32,200	$	53,943		$	—	$	86,810

OPPNEHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (unaudited)

FOR THE THREE MONTHS ENDED MARCH 31, 2011


Expressed in thousands of dollars	Parent			Guarantor subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Cash flows from operations:
Net income (loss) for the period	$	(198	)	$	10		$	5,949		$	—	$	5,761
Adjustments to reconcile net profit (loss) to net cash used in operating activities:
Depreciation and amortization		—			—			3,527			—		3,527
Deferred income tax		—			—			3,888			—		3,888
Amortization of notes receivable		—			—			5,087			—		5,087
Amortization of debt issuance costs		—			—			273			—		273
Amortization of intangible assets		—			—			1,082			—		1,082
Provision for credit losses		—			—			—			—		0
Share-based compensation expense		—			—			4,836			—		4,836
Changes in operating assets and liabilities		3,181			245			10,781			—		14,207

Cash flow provided by (used in) continuing operations		2,983			255			35,423			—		38,661

Cash flows from Investment activities
Purchase of office facilities		—			—			(1,549	)		—		(1,549	)

Cash used in investing activities		—			—			(1,549	)		—		(1,549	)

Cash flows from financing activities
Cash dividends paid on Class A non-voting and Class B voting common stock		(1,500	)		—			—			—		(1,500	)
Issuance of Class A non-voting common stock		71			—			—			—		71
Debt Issuance Cost		—			—			—			—		—
Issuance of senior secured note		—			—			—			—		—
Buy back of senior secured note		—			—			—			—		—
Repayments of senior secured credit note		—			—			(125	)		—		(125	)
Other financing activities		(1,672	)		—			(33,800	)		—		(35,472	)

Cash flow provided by (used in) financing activities		(3,101	)		—			(33,925	)		—		(37,026	)

Net increase (decrease) in cash and cash equivalents		(118	)		255			(50	)		—		87
Cash and cash equivalents, beginning of the period		361			(241	)		52,734			—		52,854

Cash and cash equivalents, end of the period	$	243		$	14		$	52,684		$	—	$	52,941

- Definition

The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

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