Reaffirms Q3 2023 Guidance for Operating
Adjusted EBITDA of at least $105
million
LOS
ANGELES, Aug. 9, 2023 /PRNewswire/ -- B. Riley
Financial, Inc. (NASDAQ: RILY) ("B. Riley" or the "Company"), a
diversified financial services platform, today released results for
the three-month and six-month period ending June 30, 2023. The Company has also reaffirmed
its guidance for operating adjusted EBITDA(3) of at
least $105 million for the third
quarter of 2023.
Highlights for the Three Months Ended June 30, 2023
- Total revenues increased 191% to $406.3
million vs. $139.6 million in
prior year quarter
- Net income attributable to the Company of $46.4 million
- Net income available to common shareholders of $44.4 million, or $1.55 diluted earnings per share (EPS)
- Operating Revenues(2) of $363.9 million
- Operating Adjusted EBITDA(3) of $80.2 million
- Total Adjusted EBITDA(1) of $139.9 million
Highlights for the Six Months Ended June 30, 2023
- Total revenues increased 117% to $838.4
million vs. $386.5 million in
prior year six-month period
- Net income attributable to the Company of $63.5 million
- Net income available to common shareholders of $59.5 million, or $2.05 diluted EPS
- Operating Revenues(2) of $744.4 million, up from $523.5 million in prior six-month period
- Operating Adjusted EBITDA(3) of $160.3 million
- Total Adjusted EBITDA(1) of $234.7 million
Reaffirmed Q3 2023 Guidance
- Expects Operating Adjusted EBITDA(3) of at least
$105 million for the third quarter of
2023
Bryant Riley, Chairman and
Co-Chief Executive Officer of B. Riley Financial, commented:
"On a consolidated basis, our platform delivered solid results for
the second quarter despite another challenging capital markets
period with nominal contribution from investment banking. We expect
a strong third quarter based on a meaningful increase of client
activity across capital markets, retail liquidation, consulting,
and appraisal. Our overall business is at a near-term inflection,
and we are encouraged by our current momentum and the opportunities
we see ahead."
Tom Kelleher, Co-Chief
Executive Officer of B. Riley Financial, added: "Market
dynamics have created a favorable environment for us to recruit
talent to provide incremental value to our clients and existing
team. During the quarter, we expanded our consumer and TMT industry
vertical coverage through the addition of multiple senior
investment bankers and strategic hires in our equity research
division. In addition, we recently acquired two practices to extend
our core restructuring and forensic litigation advisory services in
new markets, including Charlotte
and Detroit. We will continue to
invest in our people and platform to meet growing client demand and
to capitalize on our momentum."
Financial Summary
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Three Months Ended
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Six Months Ended
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June 30,
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June 30,
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(Dollars in thousands, except for share
data)
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2023
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2022
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2023
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2022
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Net income (loss)
available to common shareholders
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$
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44,366
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$
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(142,161)
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$
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59,509
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$
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(154,225)
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Basic income (loss)
per common share
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$
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1.57
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$
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(5.07)
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$
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2.09
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$
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(5.52)
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Diluted income (loss)
per common share
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$
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1.55
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$
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(5.07)
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$
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2.05
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$
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(5.52)
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Three Months Ended
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Six Months Ended
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June 30,
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June 30,
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(Dollars in thousands)
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2023
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2022
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2023
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2022
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Operating Revenues (2)
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$
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363,913
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$
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257,384
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$
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744,435
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$
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523,502
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Investment Gains (Loss) (4)
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42,365
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(117,763)
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93,933
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(137,041)
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Total
Revenues
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$
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406,278
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$
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139,621
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$
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838,368
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$
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386,461
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Operating
Adjusted EBITDA (3)
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$
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80,216
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$
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74,220
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$
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160,342
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$
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158,407
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Investment
Adjusted EBITDA (5)
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59,677
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(209,997)
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74,382
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(253,522)
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Total Adjusted
EBITDA (1)
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$
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139,893
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$
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(135,777)
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$
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234,724
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$
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(95,115)
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Certain of the information set forth herein, including Adjusted
EBITDA(1), Operating Revenues(2), and
Operating Adjusted EBITDA(3), may be considered non-GAAP
financial measures. Information about B. Riley Financial's use of
non-GAAP financial measures is provided below under "Use of
Non-GAAP Financial Measures."
For the three months ended June 30,
2023:
- Net income attributable to B. Riley Financial was $46.4 million for the second quarter of
2023.
- Net income applicable to common shareholders was $44.4 million, or $1.55 diluted EPS.
- Total revenues increased 191% to $406.3
million, up from $139.6
million in the prior year quarter.
- Total adjusted EBITDA(1) of $139.9 million compared to ($135.8 million) in the prior year quarter.
- Operating revenues(2) increased 41% to $363.9 million, up from $257.4 million in the prior year quarter.
- Operating adjusted EBITDA(3) increased 8% to
$80.2 million, up from $74.2 million in the prior year quarter.
For the six months ended June 30,
2023:
- Net income attributable to B. Riley Financial was $63.5 million for the six-month period ended
June 30, 2023.
- Net income applicable to common shareholders was $59.5 million, or $2.05 diluted EPS.
- Total revenues increased 117% to $838.4
million, up from $386.5
million during the first half of 2022.
- Total adjusted EBITDA(1) of $234.7 million for the first half of 2023
compared to ($95.1 million) in the
first six months of 2022.
- Operating revenues(2) were $744.4 million for the first half of 2023, up
from $523.5 million for the same
prior year period.
- Operating adjusted EBITDA(3) of $160.3 million for the first half of 2023, up
from $158.4 million in the same prior
year period.
Increased revenues for the three- and six-month periods ended
June 30, 2023 were primarily driven
by investment gains(4); the recent acquisitions of
Targus, Lingo and BullsEye Telecom during 2022; increased revenues
from retail liquidation, financial consulting and appraisal; in
addition to an increase in interest income from loans and
securities lending. Investment gains(4) were
$42.4 million for the quarter, and
$93.9 million for the first six
months of 2023, which reflected both realized and unrealized gains
and losses on strategic investments held by the Company.
Segment Financial Summary
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Segment Revenues
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Segment Income (Loss)
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Three Months Ended June 30,
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Three Months Ended June 30,
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(Dollars in thousands)
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2023
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2022
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2023
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2022
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Capital
Markets
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$ 162,052
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$
1,291
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$
77,676
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$
(61,322)
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Wealth
Management
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47,716
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62,389
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(1,358)
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(7,313)
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Auction and
Liquidation
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10,561
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3,924
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4,188
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451
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Financial
Consulting
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31,212
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24,310
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8,318
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4,284
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Communications
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84,956
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41,922
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9,982
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7,708
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Consumer
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60,112
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5,174
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2,086
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3,773
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Segment Revenues
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Segment Income (Loss)
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(Dollars in thousands)
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Three Months Ended June 30,
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Three Months Ended June 30,
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Capital Markets
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2023
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2022
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2023
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2022
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Operating
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$ 120,160
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$
120,583
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$
37,315
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(7)
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$
44,040
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(7)
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Investment
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41,892
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(119,292)
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40,361
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(105,362)
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Total
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$
162,052
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$
1,291
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$
77,676
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$
(61,322)
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For the three months ended June 30,
2023:
- Capital Markets segment revenues increased to
$162.1 million, up from $1.3 million in the same prior year period.
Segment income increased to $77.7
million compared to a segment loss of ($61.3 million) in the prior year quarter.
Excluding investment gains(4) of $41.9 million, Capital Markets segment
operating revenues(2) were $120.2
million. Segment operating income(7) was
$37.3 million for the second quarter
of 2023.
- Wealth Management segment revenues decreased to
$47.7 million from $62.4 million in the prior year quarter,
reflecting the strategic realignment of this business throughout
2022. B. Riley Wealth had over $24
billion of client assets under management as of June 30, 2023.
- Auction and Liquidation segment revenues
increased to $10.6 million, up from
$3.9 million in the same prior year
period primarily due to an increase in the size of retail fee
liquidation engagements. Segment income was $4.2 million compared to $0.5 million in the prior year quarter. Results
for this segment vary from quarter-to-quarter and year-to-year due
to the episodic impact of large retail liquidation
engagements.
- Financial Consulting segment revenues increased
28% to $31.2 million, up from
$24.3 million in the prior year
quarter. Segment income increased 94% to $8.3 million, up from $4.3
million in the same prior year period. Increased bankruptcy
restructuring and litigation consulting and appraisal activity
contributed to another record performance for this segment during
the second quarter of 2023.
- Communications segment revenues increased to
$85.0 million, up from $41.9 million in the prior year quarter,
primarily driven by the acquisitions of Lingo and BullsEye Telecom
in May and August of 2022, respectively. On a combined basis,
communications businesses – magicJack, United Online, Marconi
Wireless, Lingo and BullsEye Telecom— generated segment income of
$10.0 million for the second quarter
of 2023.
- Consumer segment revenues increased to
$60.1 million, up from $5.2 million in the prior year quarter. The
significant increase in segment revenues was primarily related to
the acquisition of Targus, which was completed in the fourth
quarter of 2022.
For the six months ended June 30,
2023:
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Segment Revenues
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Segment Income (Loss)
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|
|
Six Months Ended June 30,
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Six Months Ended June 30,
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(Dollars in thousands)
|
2023
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2022
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2023
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2022
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Capital
Markets
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$ 347,463
|
|
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$
104,140
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|
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$ 163,696
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$
(6,249)
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Wealth
Management
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97,530
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|
|
139,868
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|
|
15
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(17,409)
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Auction and
Liquidation
|
|
16,221
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|
|
7,279
|
|
|
4,388
|
|
|
(349)
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|
Financial
Consulting
|
|
56,222
|
|
|
50,246
|
|
|
12,101
|
|
|
9,196
|
|
|
Communications
|
|
171,875
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|
|
73,887
|
|
|
20,765
|
|
|
16,677
|
|
|
Consumer
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130,115
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|
|
9,731
|
|
|
3,732
|
|
|
6,991
|
|
|
|
|
|
|
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|
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Segment Revenues
|
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Segment Income (Loss)
|
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(Dollars in thousands)
|
Six Months Ended June 30,
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Six Months Ended June 30,
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Capital Markets
|
2023
|
|
2022
|
|
2023
|
|
2022
|
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Operating
|
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$ 255,275
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$
243,231
|
|
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$
81,460
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(7)
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$
94,047
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(7)
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Investment
|
|
92,188
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|
|
(139,091)
|
|
|
82,236
|
|
|
(100,296)
|
|
|
Total
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|
$
347,463
|
|
|
$
104,140
|
|
|
$
163,696
|
|
|
$
(6,249)
|
|
|
|
|
|
|
|
|
|
|
|
|
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Common Dividend
On July 25,
2023, the Company announced its regular dividend of
$1.00 per share will be paid on or
about August 21, 2023 to stockholders
of record as of August 11, 2023.
Balance Sheet Summary
At June
30, 2023, cash and investments(6) totaled
$1.92 billion including cash and cash
equivalents of $108 million;
$1.07 billion in net securities and
other investments owned; and $684
million of loans receivable, at fair value. Total debt, net
of cash and investments(6), was $406 million at quarter-end.
Earnings Call Details
B. Riley Financial will host an
investor call to discuss its second quarter financial results
today, Wednesday August 9, 2023 at
4:30 PM ET (1:30 PM PT). Investors may access the live audio
webcast and archived recording at
https://ir.brileyfin.com/events-and-presentations. A web recording
will be made available for replay until August 23, 2023.
Supplemental Financial Data
Additional details related
to operating results and investment performance can be found in the
Second Quarter 2023 Financial Supplement on B. Riley Financial's
investor relations website.
About B. Riley Financial
B. Riley Financial is a
diversified financial services platform that delivers tailored
solutions to meet the strategic, operational, and capital needs of
its clients and partners. B. Riley leverages cross-platform
expertise to provide clients with full service, collaborative
solutions at every stage of the business life cycle. Through its
affiliated subsidiaries, B. Riley provides end-to-end financial
services across investment banking, institutional brokerage,
private wealth and investment management, financial consulting,
corporate restructuring, operations management, risk and
compliance, due diligence, forensic accounting, litigation support,
appraisal and valuation, auction, and liquidation services. B.
Riley opportunistically invests to benefit its shareholders, and
certain affiliates originate and underwrite senior secured loans
for asset-rich companies. B. Riley refers to B. Riley Financial,
Inc. and/or one or more of its subsidiaries or affiliates. For more
information, please visit www.brileyfin.com.
Footnotes (See "Note Regarding Use of Non-GAAP
Financial Measures" for further discussion of these non-GAAP terms.
For a reconciliation of Adjusted EBITDA, Operating Revenue,
Operating Adjusted EBITDA, and Investment Adjusted EBITDA to the
comparable GAAP financial measures, please see the Appendix
hereto.)
(1) Adjusted EBITDA includes earnings before interest, taxes,
depreciation, amortization, restructuring charge, share-based
payments, gain on extinguishment of loans, impairment of
tradenames, and transaction related and other costs.
(2) Operating Revenues is defined as the sum of revenues from (i)
Service and Fees, (ii) Interest Income - Loans and Securities
Lending and (iii) Sales of Goods.
(3) Operating Adjusted EBITDA is defined as Adjusted EBITDA
excluding (i) Trading Income (Loss) and Fair Value Adjustments on
Loans, (ii) Realized and Unrealized Gains (Losses) on Investments,
and (iii) other investment related expenses.
(4) Investment Gains (Loss) is defined as Trading Income (Loss) and
Fair Value Adjustments on Loans.
(5) Investment Adjusted EBITDA is defined as the sum of (i) Trading
Income (Loss) and Fair Value Adjustments on Loans and (ii) Realized
and Unrealized Gains (Losses) on Investments, less other investment
related expenses.
(6) Total cash and investments is defined as the sum of cash and
cash equivalents, restricted cash, due from clearing brokers net of
due to clearing brokers, securities and other investments owned, at
fair value net of (i) securities sold not yet purchased and (ii)
noncontrolling interest related to investments, advances against
customer contracts, loans receivable, at fair value net of loan
participations sold, and other investments reported in prepaid and
other assets.
(7) Segment Operating Income (Loss) is defined as segment income
(loss) excluding trading income (loss) and fair value adjustments
on loans and other investment related operating expenses.
Note Regarding Use of Non-GAAP Financial
Measures
Certain of the information set forth herein,
including operating revenues, adjusted EBITDA, operating adjusted
EBITDA, and investment adjusted EBITDA, may be considered non-GAAP
financial measures. B. Riley Financial believes this information is
useful to investors because it provides a basis for measuring the
Company's available capital resources, the operating performance of
its business and its revenues and cash flow, (i) excluding in the
case of operating revenues, trading income (losses) and fair value
adjustments on loans, (ii) excluding in the case of adjusted
EBITDA, net interest expense, provisions for or benefit from income
taxes, depreciation, amortization, fair value adjustment,
restructuring charge, gain on extinguishment of loans, impairment
of trade names, stock-based compensation and transaction and other
expenses, (iii) excluding in the case of operating adjusted EBITDA,
the aforementioned adjustments for adjusted EBITDA as well as
trading income (losses) and fair value adjustments on loans, and
other investment related expenses, (iv) including in the case of
investment adjusted EBITDA, trading income (losses) and fair value
adjustments on loans, net of other investment related expenses, and
(v) including in the case of total cash and investments, cash and
cash equivalents, restricted cash, due from clearing brokers net of
due to clearing brokers, securities and other investments owned, at
fair value net of (a) securities sold not yet purchased and (b)
noncontrolling interest related to investments, advances against
customer contracts, loans receivable, at fair value net of loan
participations sold, and other investments reported in prepaid and
other assets, that would normally be included in the most directly
comparable measures calculated and presented in accordance with
Generally Accepted Accounting Principles ("GAAP"). In addition, the
Company's management uses these non-GAAP financial measures along
with the most directly comparable GAAP financial measures in
evaluating the Company's operating performance, management
compensation, capital resources, and cash flow. Non-GAAP financial
measures should not be considered in isolation from, or as a
substitute for, financial information presented in compliance with
GAAP, and non-financial measures as reported by the Company may not
be comparable to similarly titled amounts reported by other
companies.
Forward-Looking Statements
Statements in this press
release that are not descriptions of historical facts are
forward-looking statements that are based on management's current
expectations and assumptions and are subject to risks and
uncertainties. If such risks or uncertainties materialize or such
assumptions prove incorrect, our business, operating results,
financial condition, and stock price could be materially negatively
affected. You should not place undue reliance on such
forward-looking statements, which are based on the information
currently available to us and speak only as of the date of this
press release. Such forward-looking statements include, but are not
limited to, statements regarding our excitement and the expected
growth of our business segments. Factors that could cause such
actual results to differ materially from those contemplated or
implied by such forward-looking statements include, without
limitation, the risks described from time to time in B. Riley
Financial, Inc.'s periodic filings with the SEC, including, without
limitation, the risks described in B. Riley Financial, Inc.'s 2022
Annual Report on Form 10-K under the captions "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" (as applicable). Additional information will
be set forth in our Quarterly Report on Form 10-Q for the quarter
ended June 30, 2023. These factors
should be considered carefully, and readers are cautioned not to
place undue reliance on such forward-looking statements. All
information is current as of the date this press release is issued,
and B. Riley Financial undertakes no duty to update this
information.
B. RILEY FINANCIAL, INC.
|
|
|
Condensed Consolidated Balance
Sheets
|
|
|
(Dollars in thousands, except par
value)
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
Assets
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
107,581
|
|
$
|
268,618
|
|
Restricted
cash
|
|
|
|
|
|
|
2,321
|
|
|
2,308
|
|
Due from clearing
brokers
|
|
|
|
|
|
|
22,289
|
|
|
48,737
|
|
Securities and other
investments owned, at fair value
|
|
|
|
|
|
|
1,072,444
|
|
|
1,129,268
|
|
Securities
borrowed
|
|
|
|
|
|
|
2,938,521
|
|
|
2,343,327
|
|
Accounts receivable,
net
|
|
118,927
|
|
|
149,110
|
|
Due from related
parties
|
|
669
|
|
|
1,081
|
|
Loans receivable, at
fair value (includes $130,024 and $98,729 from related parties as
of June 30, 2023 and December 31, 2022, respectively)
|
|
683,827
|
|
|
701,652
|
|
Prepaid expenses and
other assets
|
|
309,083
|
|
|
460,696
|
|
Operating lease
right-of-use assets
|
|
85,207
|
|
|
88,593
|
|
Property and equipment,
net
|
|
28,443
|
|
|
27,141
|
|
Goodwill
|
|
|
|
526,827
|
|
|
512,595
|
|
Other intangible
assets, net
|
|
354,328
|
|
|
374,098
|
|
Deferred income
taxes
|
|
2,845
|
|
|
3,978
|
|
Total assets
|
$
|
6,253,312
|
|
$
|
6,111,202
|
Liabilities and Equity
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
$
|
60,264
|
|
$
|
81,384
|
|
Accrued expenses and
other liabilities
|
|
251,260
|
|
|
322,974
|
|
Deferred
revenue
|
|
77,089
|
|
|
85,441
|
|
Deferred income
taxes
|
|
46,624
|
|
|
29,548
|
|
Due to related parties
and partners
|
|
289
|
|
|
2,210
|
|
Due to clearing
brokers
|
|
—
|
|
|
19,307
|
|
Securities sold not yet
purchased
|
|
2,686
|
|
|
5,897
|
|
Securities
loaned
|
|
2,929,265
|
|
|
2,334,031
|
|
Operating lease
liabilities
|
|
96,473
|
|
|
99,124
|
|
Notes
payable
|
|
21,298
|
|
|
25,263
|
|
Revolving credit
facility
|
|
110,875
|
|
|
127,678
|
|
Term loans,
net
|
|
529,242
|
|
|
572,079
|
|
Senior notes payable,
net
|
|
1,666,009
|
|
|
1,721,751
|
|
Total liabilities
|
|
5,791,374
|
|
|
5,426,687
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interests in equity of subsidiaries
|
|
—
|
|
|
178,622
|
|
|
|
|
|
|
|
|
|
|
|
|
Total B. Riley
Financial, Inc. stockholders' equity
|
|
402,520
|
|
|
446,514
|
Noncontrolling
interests
|
|
59,418
|
|
|
59,379
|
|
Total equity
|
|
461,938
|
|
|
505,893
|
|
Total liabilities and
equity
|
$
|
6,253,312
|
|
$
|
6,111,202
|
B. RILEY FINANCIAL, INC.
|
Condensed Consolidated Statements of
Operations
|
(Unaudited)
|
(Dollars in thousands, except share
data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenues:
|
|
|
|
|
|
As Restated
|
|
|
|
|
|
As Restated
|
|
Services and
fees
|
$
|
230,327
|
|
$
|
191,662
|
|
$
|
465,886
|
|
$
|
394,476
|
|
Trading income (loss)
and fair value adjustments on loans
|
|
42,365
|
|
|
(117,763)
|
|
|
93,933
|
|
|
(137,041)
|
|
Interest income - Loans
and securities lending
|
|
75,199
|
|
|
63,835
|
|
|
152,385
|
|
|
125,261
|
|
Sale of
goods
|
|
58,387
|
|
|
1,887
|
|
|
126,164
|
|
|
3,765
|
|
|
Total
revenues
|
|
406,278
|
|
|
139,621
|
|
|
838,368
|
|
|
386,461
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct cost of
services
|
|
55,941
|
|
|
17,785
|
|
|
110,338
|
|
|
29,436
|
|
Cost of goods
sold
|
|
40,317
|
|
|
1,994
|
|
|
87,943
|
|
|
4,245
|
|
Selling, general and
administrative expenses
|
|
188,885
|
|
|
167,136
|
|
|
401,512
|
|
|
342,335
|
|
Restructuring
charge
|
|
628
|
|
|
—
|
|
|
721
|
|
|
—
|
|
Impairment of
tradenames
|
|
1,733
|
|
|
—
|
|
|
1,733
|
|
|
—
|
|
Interest expense -
Securities lending and loan participations sold
|
|
35,780
|
|
|
14,544
|
|
|
68,204
|
|
|
26,310
|
|
|
Total operating
expenses
|
|
323,284
|
|
|
201,459
|
|
|
670,451
|
|
|
402,326
|
|
|
|
Operating income
(loss)
|
|
82,994
|
|
|
(61,838)
|
|
|
167,917
|
|
|
(15,865)
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
701
|
|
|
500
|
|
|
3,275
|
|
|
567
|
|
Dividend
income
|
|
9,555
|
|
|
9,243
|
|
|
22,759
|
|
|
17,104
|
|
Realized and unrealized
gains (losses) on investments
|
|
18,843
|
|
|
(106,164)
|
|
|
(9,599)
|
|
|
(155,276)
|
|
Change in fair value of
financial instruments and other
|
|
381
|
|
|
4,321
|
|
|
172
|
|
|
10,302
|
|
Income (loss) from
equity investments
|
|
143
|
|
|
(3,399)
|
|
|
133
|
|
|
3,376
|
|
Interest
expense
|
|
(47,332)
|
|
|
(31,764)
|
|
|
(94,893)
|
|
|
(62,200)
|
|
|
Income (loss) before
income taxes
|
|
65,285
|
|
|
(189,101)
|
|
|
89,764
|
|
|
(201,992)
|
(Provision for) benefit
from income taxes
|
|
(21,504)
|
|
|
52,513
|
|
|
(29,423)
|
|
|
56,208
|
|
|
Net income
(loss)
|
|
43,781
|
|
|
(136,588)
|
|
|
60,341
|
|
|
(145,784)
|
Net (loss) income
attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
and redeemable
noncontrolling interests
|
|
(2,600)
|
|
|
3,571
|
|
|
(3,195)
|
|
|
4,437
|
|
|
Net income (loss)
attributable to B. Riley Financial, Inc.
|
|
46,381
|
|
|
(140,159)
|
|
|
63,536
|
|
|
(150,221)
|
Preferred stock
dividends
|
|
2,015
|
|
|
2,002
|
|
|
4,027
|
|
|
4,004
|
|
|
Net income (loss)
available to common shareholders
|
$
|
44,366
|
|
$
|
(142,161)
|
|
$
|
59,509
|
|
$
|
(154,225)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income (loss) per
common share
|
$
|
1.57
|
|
$
|
(5.07)
|
|
$
|
2.09
|
|
$
|
(5.52)
|
Diluted income (loss)
per common share
|
$
|
1.55
|
|
$
|
(5.07)
|
|
$
|
2.05
|
|
$
|
(5.52)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average basic
common shares outstanding
|
|
28,239,116
|
|
|
28,051,570
|
|
|
28,411,270
|
|
|
27,953,845
|
Weighted average
diluted common shares outstanding
|
|
28,654,246
|
|
|
28,051,570
|
|
|
29,082,885
|
|
|
27,953,845
|
|
Note: Certain
results for the three and six-month periods ended June 30, 2022
reflect amounts as restated in our 2022 Annual Report on Form 10-K
for the year ended December 31, 2022.
|
B. RILEY FINANCIAL, INC.
|
Adjusted EBITDA and Operating Adjusted EBITDA
Reconciliation
|
(Unaudited)
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net income (loss)
attributable to B. Riley Financial, Inc.
|
$
|
46,381
|
|
$
|
(140,159)
|
|
$
|
63,536
|
|
$
|
(150,221)
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for (benefit
from) income taxes
|
|
21,504
|
|
|
(52,513)
|
|
|
29,423
|
|
|
(56,208)
|
|
Interest
expense
|
|
47,332
|
|
|
31,764
|
|
|
94,893
|
|
|
62,200
|
|
Interest
income
|
|
(701)
|
|
|
(500)
|
|
|
(3,275)
|
|
|
(567)
|
|
Share based
payments
|
|
10,492
|
|
|
14,202
|
|
|
24,238
|
|
|
31,215
|
|
Depreciation and
amortization
|
|
12,534
|
|
|
7,961
|
|
|
25,611
|
|
|
15,809
|
|
Restructuring
charge
|
|
628
|
|
|
—
|
|
|
721
|
|
|
—
|
|
Gain on extinguishment
of loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,102)
|
|
Impairment of
tradenames
|
|
1,733
|
|
|
—
|
|
|
1,733
|
|
|
—
|
|
Transactions related
costs and other
|
|
(10)
|
|
|
3,468
|
|
|
(2,156)
|
|
|
3,759
|
|
|
Total EBITDA
adjustments
|
|
93,512
|
|
|
4,382
|
|
|
171,188
|
|
|
55,106
|
|
|
|
Adjusted
EBITDA
|
$
|
139,893
|
|
$
|
(135,777)
|
|
$
|
234,724
|
|
$
|
(95,115)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating EBITDA
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading (income) loss
and fair value adjustments on loans
|
|
(42,365)
|
|
|
117,763
|
|
|
(93,933)
|
|
|
137,041
|
|
Realized and unrealized
(gains) losses on investments
|
|
(18,843)
|
|
|
106,164
|
|
|
9,599
|
|
|
155,276
|
|
Other investment
related expenses
|
|
1,531
|
|
|
(13,930)
|
|
|
9,952
|
|
|
(38,795)
|
|
|
Total Operating EBITDA
Adjustments
|
|
(59,677)
|
|
|
209,997
|
|
|
(74,382)
|
|
|
253,522
|
Operating Adjusted
EBITDA
|
$
|
80,216
|
|
$
|
74,220
|
|
$
|
160,342
|
|
$
|
158,407
|
Contacts
|
|
Investors
|
Media
|
Mike Frank
|
Jo Anne
McCusker
|
ir@brileyfin.com
|
jmccusker@brileyfin.com
|
(212)
409-2424
|
(646)
885-5425
|
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SOURCE B. Riley Financial