Supplemental Guarantor Consolidated Financial Statements (Tables)

12 Months Ended

Dec. 31, 2012

OPPENHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2012


Expressed in thousands of dollars	Parent			Guarantor subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	35		$	40,658		$	94,673		$	—		$	135,366
Cash and securities segregated for regulatory and other purposes		—			—			33,000			—			33,000
Deposits with clearing organizations		—			—			25,954			—			25,954
Receivable from brokers and clearing organizations		—			—			479,699			—			479,699
Receivable from customers, net of allowance for credit losses of $2,256		—			—			817,941			—			817,941
Income taxes receivable		13,207			30,568			(450	)		(42,874	)		451
Securities purchased under agreements to resell		—			—			—			—			—
Securities owned, including amounts pledged of $569,995, at fair value		—			2,459			757,283			—			759,742
Subordinated loan receivable		—			112,558			—			(112,558	)		—
Notes receivable, net		—			—			47,324			—			47,324
Office facilities, net		—			15,547			12,785			—			28,332
Deferred tax assets, net		(143	)		309			52,350			(36,176	)		16,340
Intangible assets, net		—			—			31,700			—			31,700
Goodwill		—			—			137,889			—			137,889
Other		3,418			1,437			159,427			—			164,282
Investment in subsidiaries		506,679			880,609			(195,045	)		(1,192,243	)		—
Intercompany receivables		178,743			(114,449	)		(27,686	)		(36,608	)		—

	$	701,939		$	969,696		$	2,426,844		$	(1,420,459	)	$	2,678,020

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Drafts payable	$	—		$	—		$	56,586		$	—		$	56,586
Bank call loans		—			—			128,300			—			128,300
Payable to brokers and clearing organizations		—			—			204,218			—			204,218
Payable to customers		—			—			692,378			—			692,378
Securities sold under agreements to repurchase		—			—			392,391			—			392,391
Securities sold, but not yet purchased, at fair value		—			—			173,450			—			173,450
Accrued compensation		—			—			150,434			—			150,434
Accounts payable and other liabilities		3,759			43,350			133,646			(493	)		180,262
Income taxes payable		2,440			22,189			18,687			(43,316	)		—
Senior secured note		195,000			—			—			—			195,000
Subordinated indebtedness		—			—			112,558			(112,558	)		—
Deferred tax liabilities, net		—			(943	)		36,677			(35,734	)		—
Excess of fair value of acquired assets over cost		—			—			—			—			—
Intercompany payables		—			36,605			—			(36,605	)		—

		201,199			101,201			2,099,325			(228,706	)		2,173,019
Stockholders’ equity attributable to
Oppenheimer Holdings Inc.		500,740			868,495			323,258			(1,191,753	)		500,740
Noncontrolling interest		—			—			4,261			—			4,261
Stockholders’ equity		500,740			868,495			327,519			(1,191,753	)		505,001

	$	701,939		$	969,696		$	2,426,844		$	(1,420,459	)	$	2,678,020

OPPENHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATING BALANCE SHEET

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 assets, net		(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 tax liabilities, 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

Condensed Consolidating Statement of Operations

OPPENHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2012


Expressed in thousands of dollars	Parent			Guarantor subsidiaries		Non-guarantor Subsidiaries		Eliminations			Consolidated
REVENUE
Commissions	$	—		$	—	$	469,865	$	—		$	469,865
Principal transactions, net		—			752		53,559		—			54,311
Interest		—			12,070		57,452		(11,860	)		57,662
Investment banking		—			—		89,477		—			89,477
Advisory fees		—			—		225,226		(2,494	)		222,732
Other		—			168		58,565		(168	)		58,565

		—			12,990		954,144		(14,522	)		952,612

EXPENSES
Compensation and related expenses		397			—		626,014		—			626,411
Clearing and exchange fees		—			—		23,750		—			23,750
Communications and technology		81			—		63,278		—			63,359
Occupancy and equipment costs		—			—		62,986		(168	)		62,818
Interest		17,500			—		29,447		(11,861	)		35,086
Other		1,475			60		142,673		(2,493	)		141,715

		19,453			60		948,148		(14,522	)		953,139

Profit (loss) before income taxes		(19,453	)		12,930		5,996		—			(527	)
Income tax provision (benefit)		(6,315	)		6,093		546		—			324
Net profit (loss) for the year		(13,138	)		6,837		5,450		—			(851	)
Less net profit attributable to non-controlling interest, net of tax		—			—		2,762		—			2,762
Equity in subsidiaries		9,525			—		—		(9,525	)		—

Net profit (loss) attributable to Oppenheimer Holdings Inc.	$	(3,613	)	$	6,837	$	2,688	$	(9,525	)	$	(3,613	)

Other Comprehensive income	$	—		$	—	$	415	$	—		$	415

OPPENHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2011


Expressed in thousands of dollars.	Parent			Guarantor subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
REVENUE
Commissions	$	—		$	—		$	492,228		$	—		$	492,228
Principal transactions, net		300			(1,413	)		48,773			—			47,660
Interest		1			10,432			56,045			(9,699	)		56,779
Investment banking		—			—			120,202			(1,000	)		119,202
Advisory fees		—			—			199,565			(2,468	)		197,097
Other		—			1			46,025			—			46,026

		301			9,020			962,838			(13,167	)		958,992

EXPENSES
Compensation and related expenses		288			—			626,479			—			626,767
Clearing and exchange fees		—			—			24,991			—			24,991
Communications and technology		52			—			62,621			—			62,673
Occupancy and equipment costs		—			(24	)		76,533			—			76,509
Interest		12,541			3,546			31,638			(9,699	)		38,026
Other		2,384			299			112,963			(3,468	)		112,178

		15,265			3,821			935,225			(13,167	)		941,144

Profit (loss) before income taxes		(14,964	)		5,199			27,613			—			17,848
Income tax provision (benefit)		(6,748	)		893			11,086			—			5,231
Net profit (loss) for the year		(8,216	)		4,306			16,527			—			12,617
Less net profit attributable to non-controlling interest, net of tax		—			—			2,301			—			2,301
Equity in subsidiaries		18,532			—			—			(18,532	)		—

Net profit attributable to
Oppenheimer Holdings Inc.	$	10,316		$	4,306		$	14,226		$	(18,532	)	$	10,316

Other Comprehensive income (loss)	$	(18	)	$	1,322		$	(1,719	)	$	—		$	(415	)

OPPENHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2010


Expressed in thousands of dollars.	Parent			Guarantor subsidiaries			Non-guarantor Subsidiaries		Eliminations			Consolidated
REVENUES
Commissions	$	—		$	—		$	537,730	$	—		$	537,730
Principal transactions, net		—			(276	)		78,660		—			78,384
Interest		—			7,111			45,869		(7,109	)		45,871
Investment banking		—			—			134,906		—			134,906
Advisory fees		—			—			189,875		(1,987	)		187,888
Other		—			—			51,494		—			51,494

		—			6,835			1,038,534		(9,096	)		1,036,273

EXPENSES
Compensation and related expenses		292			—			675,749		—			676,041
Clearing and exchange fees		—			—			25,754		—			25,754
Communications and technology		18			—			64,682		—			64,700
Occupancy and equipment costs		—			—			74,389		—			74,389
Interest		—			6,595			26,264		(7,109	)		25,750
Other		774			341			102,520		(1,987	)		101,648

		1,084			6,936			969,358		(9,096	)		968,282

Profit (loss) before income taxes		(1,084	)		(101	)		69,176		—			67,991
Income tax provision (benefit)		(422	)		(1,796	)		29,429		—			27,211
Net profit (loss) for the year		(662	)		1,695			39,747		—			40,780
Less net profit attributable to non-controlling interest, net of tax		—			—			2,248		—			2,248
Equity in subsidiaries		39,194			—			—		(39,194	)		—

Net profit attributable to Oppenheimer Holdings Inc.	$	38,532		$	1,695		$	37,499	$	(39,194	)	$	38,532

Other Comprehensive income (loss)	$	43		$	(847	)	$	1,554	$	—		$	750

Condensed Consolidated Statements of Cash Flows

OPPNEHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 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	$	(13,138	)	$	6,837		$	5,450		$	—	$	(851	)
Adjustments to reconcile net profit (loss) to net cash used in operating activities:
Depreciation and amortization		—			—			10,466			—		10,466
Deferred income tax		—			—			(26,642	)		—		(26,642	)
Amortization of notes receivable		—			—			19,515			—		19,515
Amortization of debt issuance costs		639			—			—			—		639
Amortization of intangible assets		—			—			3,889			—		3,889
Provision for (reversal of) credit losses		—			—			(292	)		—		(292	)
Share-based compensation expense		—			—			4,191			—		4,191
Reduction of excess of fair value of acquired assets over cost		—			(7,020	)		—			—		(7,020	)
Changes in operating assets and liabilities		18,551			31,959			(63,857	)		—		(13,347	)

Cash flow provided by (used in) continuing operations		6,052			31,776			(47,280	)		—		(9,452	)

Cash flows from Investment activities
Purchase of office facilities		—			—			(14,739	)		—		(14,739	)

Cash used in investing activities		—			—			(14,739	)		—		(14,739	)

Cash flows from financing activities
Cash dividends paid on Class A non-voting and Class B voting common stock		(5,986	)		—			—			—		(5,986	)
Repurchase of Class A non-voting common stock		(1,866	)		—			—			—		(1,866	)
Acquistion of non-controlling interest		—			(3,000	)		—			—		(3,000	)
Other financing activities		(720	)		—			100,800			—		100,080

Cash flow provided by (used in) financing activities		(8,572	)		(3,000	)		100,800			—		89,228

Net increase (decrease) in cash and cash equivalents		(2,520	)		28,776			38,781			—		65,037
Cash and cash equivalents, beginning of year		2,555			11,882			55,892			—		70,329

Cash and cash equivalents, end of year	$	35		$	40,658		$	94,673		$	—	$	135,366

OPPNEHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 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	$	(8,216	)	$	4,306		$	16,527		$	—	$	12,617
Adjustments to reconcile net profit (loss) to net cash used in operating activities:
Depreciation and amortization		—			—			11,899			—		11,899
Deferred income tax		—			—			(745	)		—		(745	)
Amortization of notes receivable		—			—			19,699			—		19,699
Amortization of debt issuance costs		553			—			433			—		986
Amortization of intangible assets		—			—			5,390			—		5,390
Provision for (reversal of) credit losses		—			—			(168	)		—		(168	)
Share-based compensation expense		—			—			1,100			—		1,100
Changes in operating assets and liabilities		(173,276	)		7,817			196,218			—		30,759

Cash flow provided by (used in) continuing operations		(180,939	)		12,123			250,353			—		81,537

Cash flows from Investment activities
Purchase of office facilities		—			—			(5,192	)		—		(5,192	)

Cash used in investing activities		—			—			(5,192	)		—		(5,192	)

Cash flows from financing activities
Cash dividends paid on Class A non-voting and Class B voting common stock		(6,010	)		—			—			—		(6,010	)
Issuance of Class A non-voting common stock		337			—			—			—		337
Debt Issuance Cost		(4,565	)		—			—			—		(4,565	)
Issuance of senior secured note		200,000			—			—			—		200,000
Buy back of senior secured note		(5,000	)		—			—			—		(5,000	)
Repayment of subordinated note		—			—			(100,000	)		—		(100,000	)
Repayments of senior secured credit note		—			—			(22,503	)		—		(22,503	)
Other financing activities		(1,629	)		—			(119,500	)		—		(121,129	)

Cash flow provided by (used in) financing activities		183,133			—			(242,003	)		—		(58,870	)

Net increase (decrease) in cash and cash equivalents		2,194			12,123			3,158			—		17,475
Cash and cash equivalents, beginning of year		361			(241	)		52,734			—		52,854

Cash and cash equivalents, end of year	$	2,555		$	11,882		$	55,892		$	—	$	70,329

OPPENHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2010


Expressed in thousands of dollars	Parent			Guarantor subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Cash flows from operations:
Net income (loss) for the period	$	(662	)	$	1,695		$	39,747		$	—	$	40,780
Adjustments to reconcile net profit (loss) to net cash used in operating activities:
Depreciation and amortization		—			—			12,448			—		12,448
Deferred income tax		—			—			31,606			—		31,606
Amortization of notes receivable		—			—			19,657			—		19,657
Amortization of debt issuance costs		—			—			643			—		643
Amortization of intangible assets		—			—			4,324			—		4,324
Provision for (reversal of) credit losses		—			—			338			—		338
Share-based compensation expense		—			—			4,242			—		4,242
Changes in operating assets and liabilities		2,178			(4,295	)		(249,198	)		—		(251,315	)

Cash flow provided by (used in) continuing operations		1,516			(2,600	)		(136,193	)		—		(137,277	)

Cash flows from Investment activities
Purchase of office facilities		—			—			(12,157	)		—		(12,157	)

Cash used in investing activities		—			—			(12,157	)		—		(12,157	)

Cash flows from financing activities
Cash dividends paid on Class A non-voting and Class B voting common stock		(5,871	)		—			—			—		(5,871	)
Issuance of Class A non-voting common stock		2,312			—			—			—		2,312
Repayments of senior secured credit note		—			—			(10,000	)		—		(10,000	)
Other financing activities		(71	)		—			147,000			—		146,929

Cash flow provided by (used in) financing activities		(3,630	)		—			137,000			—		133,370

Net increase (decrease) in cash and cash equivalents		(2,114	)		(2,600	)		(11,350	)		—		(16,064	)
Cash and cash equivalents, beginning of year		2,475			2,359			64,084			—		68,918

Cash and cash equivalents, end of year	$	361			$ (241)		$	52,734		$	—	$	52,854