CONSOLIDATING FINANCIAL INFORMATION (Tables)

3 Months Ended

Mar. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The following table presents the consolidating balance sheet as of March 31, 2015 (in thousands):



	RAI			RSO		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	24,909		$	—	$	—		$	24,909
Restricted cash	798			—		—			798
Receivables	868			—		(154		)	714
Receivables from managed entities and related parties, net	29,317			—		(2,530		)	26,787
Investments in real estate, net	16,833			—		—			16,833
Investment securities, at fair value	22,777			—		(12,992		)	9,785
Investments in unconsolidated loan manager	40,292			—		—			40,292
Investments in unconsolidated entities	20,668			—		(7,563		)	13,105
Assets of consolidated VIE-RSO:
Cash and cash equivalents (including restricted cash)	—			244,129		—			244,129
Investments, at fair value	—			313,840		—			313,840
Loans	—			2,209,733		(558		)	2,209,175
Investments in real estate and unconsolidated entities	—			55,668		—			55,668
Other assets-RSO	—			109,836		(2		)	109,834
Total assets of consolidated VIE-RSO	—			2,933,206		(560		)	2,932,646
Property and equipment, net	5,739			—		—			5,739
Deferred tax assets, net	32,177			—		(10,162		)	22,015
Other assets	8,684			—		—			8,684
Total assets	$	203,062		$	2,933,206	$	(33,961	)	$	3,102,307

LIABILITIES AND EQUITY
Liabilities:
Accrued expenses and other liabilities	$	21,631		$	—	$	—		$	21,631
Payables to managed entities and related parties	2,167			—		(2		)	2,165
Borrowings	21,732			—		(558		)	21,174
Liabilities of consolidated VIE-RSO:
Borrowings	—			1,924,598		334			1,924,932
Other liabilities	—			59,891		(2,684		)	57,207
Total liabilities of consolidated VIE-RSO	—			1,984,489		(2,350		)	1,982,139
Total liabilities	45,530			1,984,489		(2,910		)	2,027,109
Commitments and contingencies

Equity:
Preferred stock	—			—		—			—
Common stock	338			—		—			338
Additional paid-in capital	308,877			—		—			308,877
Accumulated deficit	(17,211		)	—		(7,421		)	(24,632		)
Treasury stock, at cost	(122,305		)	—		—			(122,305		)
Accumulated other comprehensive loss	(12,480		)	—		11,341			(1,139		)
Total stockholders’ equity	157,219			—		3,920			161,139
Noncontrolling interests	313			—		—			313
Noncontrolling interests attributable to consolidated VIE-RSO	—			948,717		(34,971		)	913,746
Total equity	157,532			948,717		(31,051		)	1,075,198
Total liabilities and equity	$	203,062		$	2,933,206	$	(33,961	)	$	3,102,307

Consolidating statements of operations

The following table presents the consolidating statement of operations for the three months ended March 31, 2015 (in thousands):



	RAI			RSO			Eliminations			Consolidated
REVENUES:
Real estate	$	16,966		$	—		$	—		$	16,966
Financial fund management	5,137			—			—			5,137
Commercial finance	(2		)	—			—			(2		)
	22,101			—			—			22,101
Revenues from consolidated VIE-RSO	—			24,361			—			24,361
Elimination of consolidated VIE-RSO revenues attributed to operating segments	—			—			(4,273		)	(4,273		)
Total revenues	22,101			24,361			(4,273		)	42,189
COSTS AND EXPENSES:
Real estate	11,499			—			—			11,499
Financial fund management	2,990			—			—			2,990
Commercial finance	579			—			—			579
General and administrative	3,297			—			—			3,297
Provision for credit losses	402			—			—			402
Depreciation and amortization	457			—			—			457
	19,224			—			—			19,224
Expenses of consolidated VIE-RSO	—			21,060			—			21,060
Elimination of consolidated VIE-RSO expenses attributed to operating segments	—			—			(3,368		)	(3,368		)
Total expenses	19,224			21,060			(3,368		)	36,916
OPERATING INCOME	2,877			3,301			(905		)	5,273

OTHER INCOME (EXPENSE):
Interest expense	(421		)	—			—			(421		)
Other income, net	314			—			(478		)	(164		)
Other income, net, from consolidated VIE-RSO	—			16,516			—			16,516
Elimination of consolidated VIE-RSO other income, net	—			—			11			11
	(107		)	16,516			(467		)	15,942
Income from continuing operations before taxes	2,770			19,817			(1,372		)	21,215
Income tax provision	1,244			1,847			—			3,091
Net income	1,526			17,970			(1,372		)	18,124
Net loss attributable to noncontrolling interests	8			—			—			8
Net income attributable to noncontrolling interests-RSO	—			(8,568		)	(9,227		)	(17,795		)
Net income attributable to common shareholders	$	1,534		$	9,402		$	(10,599	)	$	337

. The following table presents the consolidating statement of operations for the three months ended March 31, 2014 (in thousands):



	RAI			RSO			Eliminations			Consolidated
REVENUES:
Real estate	$	13,275		$	—		$	—		$	13,275
Financial fund management	7,075			—			—			7,075
Commercial finance	(99		)	—			—			(99		)
	20,251			—			—			20,251
Revenues from consolidated VIE-RSO	—			25,245			—			25,245
Elimination of consolidated VIE-RSO revenues attributed to operating segments	—			—			(2,880		)	(2,880		)
Total revenues	20,251			25,245			(2,880		)	42,616
COSTS AND EXPENSES:
Real estate	8,875			—			—			8,875
Financial fund management	4,389			—			—			4,389
Commercial finance	103			—			—			103
General and administrative	3,154			—			—			3,154
Provision for credit losses	1,208			—			—			1,208
Depreciation and amortization	451			—			—			451
	18,180			—			—			18,180
Expenses of consolidated VIE-RSO	—			11,285						11,285
Elimination of consolidated VIE-RSO expenses attributed to operating segments	—			—			(2,819		)	(2,819		)
Total expenses	18,180			11,285			(2,819		)	26,646
OPERATING INCOME	2,071			13,960			(61		)	15,970

OTHER INCOME (EXPENSE):
Interest expense	(483		)	—			—			(483		)
Other income, net	737			—			(572		)	165
Other income, net, from consolidated VIE-RSO	—			3,516			—			3,516
Elimination of consolidated VIE-RSO other income, net	—			—			18			18
	254			3,516			(554		)	3,216
Income from continuing operations before taxes	2,325			17,476			(615		)	19,186
Income tax provision	1,069			16			—			1,085
Net income	1,256			17,460			(615		)	18,101
Net loss attributable to noncontrolling interests	40			—			—			40
Net income attributable to noncontrolling interests-RSO	—			(2,344		)	(14,807		)	(17,151		)
Net income attributable to common shareholders	$	1,296		$	15,116		$	(15,422	)	$	990

Consolidating statements of cash flows

The following table presents the consolidating statement of cash flows for the three months ended March 31, 2015 (in thousands):



	RAI			RSO			Eliminations			Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	1,526		$	17,970		$	(1,372	)	$	18,124
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	475			—			—			475
Provision for credit losses	402			—			—			402
Unrealized gain on trading securities	(20		)	—			—			(20		)
Equity in earnings of unconsolidated entities	(2,665		)	—			821			(1,844		)
Distributions from unconsolidated entities	2,151			—			—			2,151
Loss on sale of investment securities, net	15			—			—			15
Deferred income tax provision	1,339			—			—			1,339
Equity-based compensation issued	744			—			—			744
Changes in operating assets and liabilities	(1,532		)	—			—			(1,532		)
Adjustments to reconcile net income and operating cash flows to net income of consolidated VIE-RSO	—			(145,688		)	(27		)	(145,715		)
Net cash provided by (used in) operating activities	2,435			(127,718		)	(578		)	(125,861		)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(997		)	—			—			(997		)
Principal payments on leases and loans	3			—			—			3
Investments in real estate and unconsolidated real estate entities	(21		)	—			—			(21		)
Purchase of loans and securities by consolidated VIE-RSO	—			(211,983		)	—			(211,983		)
Principal payments and proceeds from sales of loans and securities by consolidated VIE-RSO	—			153,189			—			153,189
Purchase of loans and investments	(1,321		)	—			—			(1,321		)
Decrease in restricted cash of consolidated VIE-RSO	—			33,230			—			33,230
Other investing activity of consolidated VIE-RSO	—			3,317			—			3,317
Net cash used in investing activities	(2,336		)	(22,247		)	—			(24,583		)



CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in borrowings	881			—			—		881
Principal payments on borrowings	(120		)	—			—		(120		)
Net borrowings by consolidated VIE-RSO	—			184,202			—		184,202
Dividends paid	(1,312		)	—			—		(1,312		)
Dividends paid on common stock by consolidated VIE-RSO	—			(26,563		)	478		(26,085		)
Proceeds from issuance of common stock	1			—			—		1
Net proceeds from issuance of common stock by consolidated VIE-RSO	—			3,103			—		3,103
Repurchases of common stock	(2,108		)	—			—		(2,108		)
Increase in restricted cash	(74		)	—			—		(74		)
Other financing activity of consolidated VIE - RSO	—			(10,777		)	100		(10,677		)
Net cash (used in) provided by financing activities	(2,732		)	149,965			578		147,811

Decrease in cash	(2,633		)	—			—		(2,633		)
Cash, beginning of year	27,542			—			—		27,542
Cash, end of period	$	24,909		$	—		$	—	$	24,909