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Supplemental Guarantor Condensed Consolidated Financial Statements

6 Months Ended

Jun. 30, 2012

Supplemental Guarantor Condensed Consolidated Financial [Abstract]

Supplemental Guarantor Condensed Consolidated Financial Statements

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 indenture 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 JUNE 30, 2012

Expressed in thousands of dollars		Parent				Guarantor subsidiaries				Non-guarantor Subsidiaries				Eliminations				Consolidated
ASSETS
Cash and cash equivalents		$	1,113			$	25,864			$	66,564			$	—			$	93,541
Cash and securities segregated for regulatory and other purposes			—				—				32,487				—				32,487
Deposits with clearing organizations			—				—				64,806				—				64,806
Receivable from brokers and clearing organizations			—				—				294,444				—				294,444
Receivable from customers, net of allowance for credit losses of $2,659			—				—				839,769				—				839,769
Income taxes receivable			10,795				29,465				(879	)			(33,570	)			5,811
Securities purchased under agreements to resell			—				—				5,225				—				5,225
Securities owned, including amounts pledged of $755,395, at fair value			—				13,588				1,087,056				—				1,100,644
Subordinated loan receivable			—				112,558				—				(112,558	)			—
Notes receivable, net			—				—				52,799				—				52,799
Office facilities, net			—				—				25,923				—				25,923
Deferred tax asset			—				2,166				29,097				(31,263	)			—
Intangible assets, net			—				—				32,356				—				32,356
Goodwill			—				—				137,889				—				137,889
Other			3,759				949				206,340								211,048
Investment in subsidiaries			499,480				889,006				(194,935	)			(1,193,551	)			—
Intercompany receivables			188,864				(132,139	)			(20,122	)			(36,603	)			—
		$	704,011			$	941,457			$	2,658,819			$	(1,407,545	)		$	2,896,742
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Drafts payable		$	—			$	—			$	46,592			$	—			$	46,592
Bank call loans			—				—				86,900				—				86,900
Payable to brokers and clearing organizations			—				—				378,700				—				378,700
Payable to customers			—				—				538,354				—				538,354
Securities sold under agreements to repurchase			—				—				734,883				—				734,883
Securities sold, but not yet purchased, at fair value			—				—				94,153				—				94,153
Accrued compensation			—				—				108,306				—				108,306
Accounts payable and other liabilities			3,696				10,096				182,529				(2,814	)			193,507
Income taxes payable			2,440				19,951				8,941				(31,332	)			—
Senior secured note			195,000				—				—				—				195,000
Subordinated indebtedness			—				—				112,558				(112,558	)			—
Deferred income tax, net			141				—				34,656				(31,264	)			3,533
Excess of fair value of acquired assets over cost			—				—				7,020				—				7,020
Intercompany payables			—				36,604				—				(36,604	)			—
			201,277				66,651				2,333,592				(214,572	)			2,386,948
Stockholders’ equity attributable to Oppenheimer Holdings Inc.			502,734				874,806				318,167				(1,192,973	)			502,734
Noncontrolling interest			—				—				7,060				—				7,060
Stockholders’ equity			502,734				874,806				325,227				(1,192,973	)			509,794
		$	704,011			$	941,457			$	2,658,819			$	(1,407,545	)		$	2,896,742

OPPENHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATING BALANCE SHEET (unaudited)

AS OF DECEMBER 31, 2011

Expressed in thousands of dollars.		Parent				Guarantor subsidiaries				Non-Guarantor 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			—				2,164				21,130				(23,294	)			—
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	)			—
		$	709,294			$	944,983			$	3,270,699			$	(1,397,537	)		$	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			50				—				33,546				(23,294	)			10,302
Excess of fair value of acquired assets over cost			—				—				7,020				—				7,020
Intercompany payables			—				37,126				—				(37,126	)			—
			201,224				66,230				2,950,140				(203,558	)			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
		$	709,294			$	944,983			$	3,270,699			$	(1,397,537	)		$	3,527,439

OPPENHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (unaudited)

FOR THE SIX MONTHS ENDED JUNE 30, 2012

Expressed in thousands of dollars		Parent				Guarantor subsidiaries				Non-guarantor Subsidiaries				Elimination				Consolidated
REVENUE
Commissions		$	—			$	—			$	238,063			$	—			$	238,063
Principal transactions, net			—				290				25,725			$	—				26,015
Interest			—				6,154				27,816				(6,331	)			27,639
Investment banking			—				—				45,058				—				45,058
Advisory fees			—				—				105,038				(1,257	)			103,781
Other			—				84				30,803				(84	)			30,803
			—				6,528				472,503				(7,672	)			471,359
EXPENSES
Compensation and related expenses			212				—				309,335				—				309,547
Clearing and exchange fees			—				—				12,020				—				12,020
Communications and technology			44				—				31,422				—				31,466
Occupancy and equipment costs			—				—				41,837				(84	)			41,753
Interest			8,750				20				14,583				(6,331	)			17,022
Other			772				37				58,649				(1,257	)			58,201
			9,778				57				467,846				(7,672	)			470,009
Profit before income taxes			(9,778	)			6,471				4,657				—				1,350
Income tax provision (benefit)			(3,910	)			4,286				1,482				—				1,858
Net profit for the period			(5,868	)			2,185				3,175				—				(508	)
Less net profit attributable to non-controlling interest, net of tax			—				—				(1,727	)			—				(1,727	)
Equity in subsidiaries			3,633				—				—				(3,633	)			—
Net profit attributable to Oppnheimer Holdings Inc.		$	(2,235	)		$	2,185			$	1,448			$	(3,633	)		$	(2,235	)
Comprehensive income (loss)		$	(1	)		$	—			$	(653	)		$	—			$	(654	)

OPPENHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (unaudited)

FOR THE THREE MONTHS ENDED JUNE 30, 2012

Expressed in thousands of dollars		Parent				Guarantor subsidiaries				Non-guarantor Subsidiaries				Elimination				Consolidated
REVENUE
Commissions		$	—			$	—			$	112,429			$	—			$	112,429
Principal transactions, net			—				(198	)			13,658				—				13,460
Interest			—				3,057				14,820				(3,631	)			14,246
Investment banking			—				—				24,971				—				24,971
Advisory fees			—				—				54,324				(620	)			53,704
Other			—				42				14,335				(42	)			14,335
			—				2,901				234,537				(4,293	)			233,145
EXPENSES
Compensation and related expenses			84				—				150,812				—				150,896
Clearing and exchange fees			—				—				5,989				—				5,989
Communications and technology			44				—				15,284				—				15,328
Occupancy and equipment costs			—				—				17,451				(42	)			17,409
Interest			4,376				1				7,484				(3,631	)			8,230
Other			429				19				27,626				(620	)			27,454
			4,933				20				224,646				(4,293	)			225,306
Profit before income taxes			(4,933	)			2,881				9,891				—				7,839
Income tax provision (benefit)			(2,078	)			3,034				3,508				—				4,464
Net profit for the period			(2,855	)			(153	)			6,383				—				3,375
Less net profit attributable to non-controlling interest, net of tax			—				—				(953	)			—				(953	)
Equity in subsidiaries			5,277				—				—				(5,277	)			—
Net profit attributable to Oppnheimer Holdings Inc.		$	2,422			$	(153	)		$	5,430			$	(5,277	)		$	2,422
Comprehensive income (loss)		$	(3	)		$	—			$	(285	)		$	—			$	(288	)

OPPENHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (unaudited)

FOR THE SIX MONTHS ENDED JUNE 30, 2011

Expressed in thousands of dollars		Parent				Guarantor subsidiaries				Non-guarantor Subsidiaries				Eliminations				Consolidated
REVENUE
Commissions		$	—			$	—			$	257,645			$	—			$	257,645
Principal transactions, net			—				(307	)			24,611				—				24,304
Interest			—				4,419				28,230				(4,211	)			28,438
Investment banking			—				—				63,158				(1,000	)			62,158
Advisory fees			—				—				99,695				(1,191	)			98,504
Other			—				—				26,886				—				26,886
			—				4,112				500,225				(6,402	)			497,935
EXPENSES
Compensation and related expenses			152				—				330,699				—				330,851
Clearing and exchange fees			—				—				12,613				—				12,613
Communications and technology			21				—				31,987				—				32,008
Occupancy and equipment costs			—				—				37,070				—				37,070
Interest			3,791				3,428				15,435				(4,211	)			18,443
Other			1,546				262				55,800				(2,191	)			55,417
			5,510				3,690				483,604				(6,402	)			486,402
Profit before income taxes			(5,510	)			422				16,621				—				11,533
Income tax provision (benefit)			(2,192	)			265				7,261				—				5,334
Net profit for the period			(3,318	)			157				9,360				—				6,199
Less net profit attributable to non-controlling interest, net of tax			—				—				(1,422	)			—				(1,422	)
Equity in subsidiaries			8,095				—				—				(8,095	)			—
Net profit attributable to Oppnheimer Holdings Inc.		$	4,777			$	157			$	7,938			$	(8,095	)		$	4,777
Comprehensive income (loss)		$	—			$	—			$	119			$	—			$	119

OPPENHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (unaudited)

FOR THE THREE MONTHS ENDED JUNE 30, 2011

Expressed in thousands of dollars		Parent				Guarantor subsidiaries				Non-guarantor Subsidiaries				Eliminations				Consolidated
REVENUE
Commissions		$	—			$	—			$	120,790			$	—			$	120,790
Principal transactions, net			—				(308	)			13,621				—				13,313
Interest			—				2,671				13,441				(2,463	)			13,649
Investment banking			—				—				34,717				(1,000	)			33,717
Advisory fees			—				—				50,662				(607	)			50,055
Other			—				—				12,994				—				12,994
			—				2,363				246,225				(4,070	)			244,518
EXPENSES
Compensation and related expenses			48				—				160,388				—				160,436
Clearing and exchange fees			—				—				6,300				—				6,300
Communications and technology			7				—				16,062				—				16,069
Occupancy and equipment costs			—				—				18,524				—				18,524
Interest			3,791				1,924				7,417				(2,463	)			10,669
Other			1,331				11				31,081				(1,607	)			30,816
			5,177				1,935				239,772				(4,070	)			242,814
Profit before income taxes			(5,177	)			429				6,453				—				1,704
Income tax provision (benefit)			(2,058	)			240				3,084				—				1,266
Net profit for the period			(3,119	)			189				3,369				—				438
Less net profit attributable to non-controlling interest, net of tax			—				—				(747	)			—				(747	)
Equity in subsidiaries			2,810				—				—				(2,810	)			—
Net profit attributable to Oppnheimer Holdings Inc.		$	(309	)		$	189			$	2,622			$	(2,810	)		$	(309	)
Comprehensive income (loss)		$	—			$	—			$	(120	)		$	—			$	(120	)

OPPENHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (unaudited)

FOR THE SIX MONTHS ENDED JUNE 30, 2012

Expressed in thousands of dollars		Parent				Guarantor subsidiaries				Non-Guarantor Subsidiaries				Eliminations				Consolidated
Cash flows from operations:
Net income (loss) for the period		$	(5,868	)		$	2,185			$	3,175			$	—			$	(508	)
Adjustments to reconcile net profit (loss) to net cash used in operating activities:
Depreciation and amortization			—				—				5,553				—				5,553
Deferred income tax			90				(2	)			(6,857	)			—				(6,769	)
Amortization of notes receivable			—				—				9,760				—				9,760
Amortization of debt issuance costs			319				—				—				—				319
Amortization of intangible assets			—				—				3,233				—				3,233
Provision for credit losses			—				—				111				—				111
Share-based compensation expense			—				—				2,224				—				2,224
Changes in operating assets and liabilities			8,517				11,799				(58,106	)			—				(37,790	)
Cash flow provided by (used in) continuing operations			3,058				13,982				(40,907	)			—				(23,867	)
Cash flows from Investment activities
Purchase of office facilities			—				—				(7,821	)			—				(7,821	)
Cash used in investing activities			—				—				(7,821	)			—				(7,821	)
Cash flows from financing activities
Cash dividends paid on Class A non-voting and Class B voting common stock			(2,990	)			—				—				—				(2,990	)
Issuance of Class A non-voting common stock			—				—				—				—				—
Repurchase of Class A non-voting common stock			(1,551	)			—				—				—				(1,551	)
Tax benefit (shortfall) from shared based compensation			41				—				—				—				41
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			—				—				59,400				—				59,400
Cash flow provided by (used in) financing activities			(4,500	)			—				59,400				—				54,900
Net increase (decrease) in cash and cash equivalents			(1,442	)			13,982				10,672				—				23,212
Cash and cash equivalents, beginning of the period			2,555				11,882				55,892				—				70,329
Cash and cash equivalents, end of the period		$	1,113			$	25,864			$	66,564			$	—			$	93,541

OPPENHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (unaudited)

FOR THE SIX MONTHS ENDED JUNE 30, 2011

Expressed in thousands of dollars		Parent				Guarantor subsidiaries				Non-Guarantor Subsidiaries				Eliminations				Consolidated
Cash flows from operations:
Net income (loss) for the period		$	(3,318	)		$	157			$	9,360			$	—			$	6,199
Adjustments to reconcile net profit (loss) to net cash used in operating activities:
Depreciation and amortization			—				—				6,437				—				6,437
Deferred income tax			—				(943	)			3,120				—				2,177
Amortization of notes receivable			—				—				10,140				—				10,140
Amortization of debt issuance costs			—				—				571				—				571
Amortization of intangible assets			—				—				2,163				—				2,163
Provision for credit losses			—				—				(286	)			—				(286	)
Share-based compensation expense			—				—				2,720				—				2,720
Changes in operating assets and liabilities			(189,836	)			85,715				52,791				69				(51,262	)
Cash flow provided by (used in) continuing operations			(193,155	)			84,928				87,016				69				(21,141	)
Cash flows from Investment activities
Purchase of office facilities			—				—				(3,013	)			—				(3,013	)
Cash used in investing activities			—				—				(3,013	)			—				(3,013	)
Cash flows from financing activities
Cash dividends paid on Class A non-voting and Class B voting common stock			(3,003	)			—				—				—				(3,003	)
Issuance of Class A non-voting common stock			337				—				—				—				337
Repurchase of Class A non-voting common stock			200,000				—				—				—				200,000
Tax benefit (shortfall) from share-based compensation			—				—				(1,624	)			—				(1,624	)
Debt Issuance Cost			(4,346	)			—				—				—				(4,346	)
Repayments of senior secured credit note			—				—				(22,503	)			—				(22,503	)
Repayments of subordinated loan			—				—				(100,000	)			—				(100,000	)
Other financing activities			553				(35,215	)			46,731				(69	)			12,000
Cash flow provided by (used in) financing activities			193,541				(35,215	)			(77,396	)			(69	)			80,861
Net increase (decrease) in cash and cash equivalents			386				49,713				6,607				—				56,707
Cash and cash equivalents, beginning of the period			361				(241	)			52,734				—				52,854
Cash and cash equivalents, end of the period		$	747			$	49,472			$	59,341			$	—			$	109,561

X

- Details

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Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- 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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 04

-Paragraph c

-Article 5



Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

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-Name Accounting Standards Codification

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-Name Accounting Research Bulletin (ARB)

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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