FBR & Co.

CIK:0001371446|SEC Filings

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Investment banking:
Capital raising	$ 22,574	$ 2,530
Advisory	38	1,620
Institutional brokerage	7,705	12,184
Net investment income (loss)	443	(918)
Interest	5,484	8,364
Dividends and other	78	123
Total revenues	36,322	23,903
Interest expense	3,777	6,003
Revenues, net of interest expense	32,545	17,900
Non-interest expenses:
Compensation and benefits	17,900	17,995
Professional services	4,300	1,620
Occupancy and equipment	2,666	3,333
Communications	2,037	2,554
Business development	1,866	1,614
Clearing and brokerage fees	1,134	1,284
Other operating expenses	1,324	1,585
Total non-interest expenses	31,227	29,985
Income (loss) before income taxes	1,318	(12,085)
Income tax provision (benefit)	52	(6,631)
Net income (loss)	$ 1,266	$ (5,454)
Income (loss) per share:
Basic income (loss) per share	$ 0.18	$ (0.72)
Diluted income (loss) per share	$ 0.17	$ (0.72)
Basic weighted average shares outstanding (in thousands)	7,214	7,567
Diluted weighted average shares outstanding (in thousands)	7,339	7,567
Cash dividends declared per common share	$ 0.20	$ 0.20

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities
Net (loss) income	$ 1,266	$ (5,454)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	854	920
Deferred income taxes	15	(6,631)
Net investment (income) loss	(443)	918
Stock compensation	784	(591)
Other	0	717
Receivables:
Securities borrowed	(12,708)	(164,900)
Brokers, dealers and clearing organizations	(4,902)	(5,468)
Customers	(2,572)	(182)
Affiliates	90	(269)
Interest, dividends and other	(19)	(641)
Trading securities	(2,047)	2,956
Prepaid expenses and other assets	206	(197)
Changes in operating liabilities:
Securities loaned	20,953	163,014
Trading account financial instruments sold, not yet purchased	0	1,251
Accounts payable, accrued expenses and other liabilities	2,118	(852)
Accrued compensation and benefits	(6,133)	(9,824)
Net cash used in operating activities	(2,538)	(25,233)
Cash flows from investing activities
Proceeds from sales of and distributions from investments	11,216	21,726
Due from brokers, dealers and clearing organizations	(3,300)	0
Purchases of investment securities and other investments	(1,252)	0
Purchases of furniture, equipment, software, and leasehold improvements	(107)	(287)
Purchase of securities lending business	0	(1,332)
Settlement of financial instruments sold, not yet purchased	0	(1,134)
Net cash provided by investing activities	6,557	18,973
Cash flows from financing activities
Repurchases of common stock	(1,537)	(9,120)
Dividends paid	(1,730)	(1,904)
Net cash used in financing activities	(3,267)	(11,024)
Cash and cash equivalents
Net increase (decrease) in cash and cash equivalents	752	(17,284)
Cash and cash equivalents, beginning of period	75,019	70,067
Cash and cash equivalents, end of period	75,771	52,783
Supplemental cash flows disclosures
Interest payments	3,687	6,003
Non-cash investing and financing activities
Dividends payable	$ 437	$ 491

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Assets
Cash and cash equivalents	$ 75,771	$ 75,019
Receivables:
Securities borrowed	910,051	897,343
Due from brokers, dealers and clearing organizations	13,030	4,828
Customers	5,377	2,805
Other	3,821	4,297
Financial instruments owned, at fair value	24,927	32,401
Goodwill and intangible assets	4,360	4,490
Furniture, equipment, software, and leasehold improvements, net of accumulated depreciation and amortization	12,008	12,624
Prepaid expenses and other assets	3,913	4,134
Total assets	1,053,258	1,037,941
Liabilities
Securities loaned	913,262	892,309
Accrued compensation and benefits	5,754	12,291
Accounts payable, accrued expenses and other liabilities	17,790	15,923
Total liabilities	936,806	920,523
Commitments and Contingencies (Note 8)
Shareholders’ equity
Preferred Stock, $0.001 par value 100,000,000 authorized, none issued and outstanding	0	0
Common stock, $0.001 par value, 300,000,000 shares authorized, 7,088,142 and 6,918,306 shares issued and outstanding, respectively	7	7
Additional paid-in capital	255,889	252,311
Restricted stock units	8,961	14,771
Accumulated deficit	(148,405)	(149,671)
Total shareholders’ equity	116,452	117,418
Total liabilities and shareholders’ equity	$ 1,053,258	$ 1,037,941