LOS ANGELES, May 15, 2024 /PRNewswire/ -- B. Riley
Financial, Inc. (NASDAQ: RILY) ("B. Riley" or the
"Company"), a diversified financial services platform, today released
financial results for the three-month period ended March 31, 2024.
First Quarter 2024 Summary
- Net loss
available to common shareholders of $51 million primarily driven by
non-cash, unrealized investment losses
- Total
revenues of $343 million vs $432 million for the first quarter of 2023
- Operating
revenues(3) of $379 million vs $389 million
- Operating
adjusted EBITDA(4)(5) of $66 million vs $88 million
- Total cash
and cash equivalents of $191 million as of March 31, 2024
- Total cash
and investments(1) of $1.61 billion as of quarter end
- Retired $115
million of 6.75% 2024 Senior Notes; and repaid $57 million of bank debt
facilities and notes payable
- Declared
quarterly dividend of $0.50 per common share
Bryant Riley, Chairman and
Co-Chief Executive Officer of B. Riley Financial, commented: "Overall, we had a
solid quarter from an operating perspective despite the unusual events our firm
has experienced over the last several months. As we review this quarter, it is
worth pointing out a few meaningful changes since last year. Results from 2023
benefited from $52 million of unrealized gains on investments in addition to
increased interest income from the pool of performing consumer receivables that
we acquired in the prior year which is maturing. In contrast, the first quarter
of 2024 reflected $30 million of unrealized non-cash investment losses, and
incremental costs related to the filing of our 10-K, internal review and
subsequent independent investigation undertaken by our Board's Audit Committee.
Excluding these items, operating income was flat compared to last year based on
the performance of our core businesses - B. Riley Securities, Wealth
Management, and Financial Consulting, including Advisory Services which
reported a record first quarter."
Tom Kelleher, Co-Chief
Executive Officer of B. Riley Financial, added: "As it relates to our operating performance,
B. Riley Advisory Services delivered its strongest Q1 results in our firm's
history, driven by increased demand for appraisals and bankruptcy
restructuring, litigation consulting and real estate services. B. Riley
Securities benefitted from a steady dealmaking environment and generated more
in fee income this quarter compared to the same period last year, despite a
decrease in overall Capital Markets segment revenues. Wealth Management
operating margins have continued to improve over the last two years, and our
Communications portfolio continued to deliver steady cash flow to our platform
during the quarter. While Targus is continuing to work through macro headwinds,
we believe the business is poised to turn as the overall PC market normalizes.
Our core operating performance remains strong - and that is due in no small
part to the continued dedication of our employees across B. Riley."
Riley continued:
"Consistent with our business model, we have monetized investments since
year-end and used the capital to retire bonds, repay $57 million of bank debt
and notes payable, and redeploy in attractive new opportunities - including
Nogin which is a great strategic fit with our brands business. The strategic
review process for our Great American Group retail liquidation and appraisal
businesses is progressing, and we are pleased with the interest we have seen to
date. Throughout all of the distractions we experienced this past quarter,
we have kept our heads down and focused on running our business in the best
interest of our stockholders by addressing the needs of our clients, partners,
and employees. To that end, we are pleased to deliver our investors a quarterly
dividend of $0.50 per share based on our operating performance for the first
quarter."
Declaration of Common
Dividend
The Company has declared a
quarterly dividend of $0.50 per common share which will be paid on or about
June 11, 2024 to common shareholders of record as of May 27, 2024.
Balance Sheet Summary
At March 31, 2024, the Company
had $191 million of cash and cash equivalents. Cash and investments(1)
totaled $1.61 billion as of quarter end, which includes $943 million of net
securities and other investments owned, and $452 million of loans receivable,
at fair value.
Total debt was $2.19 billion as
March 31, 2024. Total net debt, net of cash and investments,(1) was
$581 million at quarter-end.
Redemption of 6.75% 2024
Senior Notes
On February 29, 2024, the
Company redeemed approximately $115 million aggregate principal amount of its
6.75% 2024 Senior Notes. The Company announced it will redeem the remaining $25
million of its 6.75% 2024 Senior Notes on May 31, 2024.
First Quarter 2024 Financial
Summary
|
Three
Months Ended |
||||||
|
March
31, |
||||||
|
(Dollars in thousands, except for
share data) |
2024 |
2023 |
||||
|
Net (loss) income available to common
shareholders |
$ |
(51,180) |
$ |
15,143 |
||
|
Basic (loss) income per common share |
$ |
(1.71) |
$ |
0.53 |
||
|
Diluted (loss) income per common share |
$ |
(1.71) |
$ |
0.51 |
||
Net loss available to common
shareholders was $51 million during the three months ended March 31, 2024 which
was driven by approximately $59 million of investment-related losses consisting
primarily of non-cash trading loss on investments and fair value adjustments on
loans, and realized and unrealized losses on investments. This compared to net
income available to common shareholders of $15 million for the three months
ended March 31, 2023, which included investment-related gains of approximately
$23 million.
During the first quarter of
2024, the Company also incurred incremental professional services expenses of
approximately $7 million, compared to the first quarter of 2023, related to the
filing of its Annual Report on Form 10-K, and the internal review and
subsequent independent investigation undertaken by the Audit Committee of the
Company's Board of Directors.
Operating loss was $3 million
in the first quarter of 2024, compared to operating income of $85 million in
the prior year quarter. On a normalized basis, operating income, adjusted for
trading income and fair value adjustments on loans and incremental professional
services fees, was flat at approximately $33 million in the first quarter of
2024 compared to the prior year quarter.
Total revenues were $343
million for the first quarter of 2024, compared to $432 million for the first
quarter of 2023. The decrease was due to trading loss and fair value
adjustments on loans of $30 million which was primarily related to unrealized,
non-cash investment losses, compared to trading income and fair value
adjustment on loans of $52 million in the same prior year period.
Operating revenues(3)
were $379 million for the first quarter of 2024, compared to $389 million in
the prior year quarter. Revenues from services and fees increased 9% to $257
million, up from $236 million in the same prior year period. Revenues from the
sale of goods were $56 million for the first quarter of 2024, compared to $68
million in the prior year period.
Interest income from loans and
securities lending was $60 million for the first quarter of 2024, compared to
$77 million in the prior year quarter, in line with the reduction of the
Company's loans receivable at fair value balance to $452 million as of March
31, 2024 from $772 million as of March 31, 2023.
Operating adjusted EBITDA
(4)(5) was $66 million compared to $88 million for the first quarter of
2023.
Certain of the information set
forth herein, including Operating Revenues(3) and Operating Adjusted
EBITDA(4)(5), are 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."
Supplemental Financial Data
Investment gains and losses
include realized and unrealized gains and losses on investments, whether
realized from dispositions or unrealized due to changes in mark-to-market
prices, and often cause volatility in our periodic earnings. For this reason, the
Company generally discusses its financial performance in the context of
operating revenues (3) and operating adjusted EBITDA (4)(5) which
are considered non-GAAP financial measures.
Additional details related to
operating results and investment performance can be found in the First Quarter
2024 Financial Supplement on the Company's investor relations website. The
Company recast its non-GAAP operating metrics during the fourth quarter of 2023
to include revenues from fixed income trading. This adjustment is reflected in
the reconciliation for operating revenues and operating adjusted EBITDA for all
periods presented.
Segment Financial Summary
for the First Quarter 2024
|
Segment
Revenues |
|||||
|
Three
Months Ended March 31, |
|||||
|
(Dollars in thousands) |
2024 |
2023 |
|||
|
Capital Markets |
$
89,823 |
$
185,411 |
|||
|
Wealth Management |
51,782 |
49,814 |
|||
|
Auction and Liquidation |
5,780 |
5,660 |
|||
|
Financial Consulting |
35,085 |
25,010 |
|||
|
Communications |
82,366 |
86,919 |
|||
|
Consumer Products |
51,522 |
65,694 |
|||
|
Segment
Revenues |
|||||
|
(Dollars in thousands) |
Three
Months Ended March 31, |
||||
|
Capital Markets |
2024 |
2023 |
|||
|
Operating Revenues (3) |
$
125,544 |
$
142,246 |
|||
|
Investment (Loss) Gains (2) |
(35,721) |
43,165 |
|||
|
Total Segment Revenues |
$
89,823 |
$
185,411 |
|||
Segment Highlights
- Capital
Markets segment revenues were $90 million in the first quarter
of 2024, compared to $185 million in the first quarter of 2023, primarily
due to unrealized investment loss. Segment revenues for the first quarter
of 2024 increased 7% from $84 million in the fourth quarter of 2023 due in
part to the overall improved dealmaking environment for investment
banking. Excluding investment loss(2) of $36 million, segment
operating revenues(3) of $126 million included $60 million of
revenues from services and fees, and $60 million of interest income from
loans and securities lending. Segment income was $0.4 million for the
first quarter of 2024, which included $30 million of trading loss and fair
value adjustment on loans. Excluding trading loss and fair value
adjustments on loans, segment operating income(6) was $36
million for the first quarter of 2024.
- Wealth
Management revenues increased to $52
million in the first quarter of 2024, up on a year-over-year and
sequential basis from revenues of $50 million in the first quarter of
2023. Brokerage revenues, advisory revenues, and syndicate revenues all
showed sequential improvement from the fourth quarter of 2023. Assets
under management totaled $25.8 billion at March 31, 2024.
- Auction and
Liquidation contributed segment revenues
of $6 million and segment income of $2 million during the first quarter of
2024 primarily related to ongoing retail liquidation projects in Europe
and returning clients in the U.S. and Canada. Results for this segment
vary quarter-to-quarter and year-to-year due to the episodic impact of
large retail liquidation engagements.
- Financial
Consulting revenues increased 40% to $35
million, up from $25 million in the first quarter of 2023, primarily
related to an increase in appraisal engagements, bankruptcy and litigation
consulting assignments, and real estate restructuring projects. The
increase in revenue was also driven by the additions of Farber and
Crawford & Winiarski in 2023, which contributed to the increase in
advisory and bankruptcy consulting and litigation consulting assignments.
Segment income increased 62% to $6 million for the first quarter of 2024,
up from $4 million in the same period during 2023.
- Communications
segment revenues were $82 million with segment income of $8 million for
the first quarter of 2024. The Company's portfolio of communications
businesses continued to serve as a steady source of cash flow for the
platform.
- Consumer
Products segment revenues were $52
million for the first quarter of 2024 compared to $66 million for the same
prior year period. Continued softness in worldwide PC and laptop sales
resulted in a segment loss of $3 million for the quarter. Despite macro
headwinds, Targus remains a leader in the PC and tablet accessories
category and the Company believes Targus is well positioned when the
market returns to growth.
Brand investments contributed
to increased revenues from services and fees in All Other category during the
first quarter of 2024. Dividend income related to securities owned and brand
investments was $11.8 million for the three months ended March 31, 2024.
Earnings Call Details
B. Riley Financial will
hold its earnings conference call today, May 15, beginning at 4:30 PM ET (1:30
PM PT) to discuss its business and financial results for the first quarter of
2024. 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 May 29.
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 Segment Operating Income (Loss) to the comparable GAAP
financial measures, please see the Appendix hereto.
(1) Total cash and investments
is defined as the sum of cash and cash equivalents, net of noncontrolling
interest, 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.
(2) Investment Gains (Losses) is defined as Trading Income (Loss) and Fair
Value Adjustments on Loans less fixed income trading revenue.
(3) 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. During the fourth quarter of 2023, the Company recast its operating
financial metrics to include revenues from fixed income trading. Operating
Revenues has been adjusted to include fixed income trading revenue for the
periods presented.
(4) Adjusted EBITDA includes earnings before interest, taxes, depreciation,
amortization, restructuring charge, share-based payments, gain/loss on
extinguishment of loans, gain on bargain purchase, impairment of goodwill and
tradenames, and transaction related and other costs.
(5) 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. During the fourth quarter of 2023, the Company recast its operating
metrics to include revenues from fixed income trading. Operating Adjusted
EBITDA has been adjusted to include fixed income trading revenue for the
periods presented.
(6) Segment Operating Income (Loss) is defined as segment income (loss)
including fixed income trading revenues and 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 total cash and investments, investment
gains (losses), operating revenues, adjusted EBITDA, operating adjusted EBITDA,
and segment operating income (loss), 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, gain on bargain purchase, impairment of goodwill
and tradenames, 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 net of fixed income trading revenue, realized and
unrealized gains (losses) on investments, and other investment related
expenses, (iv) including in the case of trading income (losses) and fair value
adjustments on loans, realized and unrealized gains (losses) on investments,
net of fixed income trading revenue and 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 2023 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 B. Riley
Financial's Quarterly Report on Form 10-Q for the three months ended March 31,
2024. 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. AND SUBSIDIARIES Condensed
Consolidated Balance Sheets (Dollars
in thousands, except par value) |
|||||||||||
|
March
31, |
December
31, |
||||||||||
|
2024 |
2023 |
||||||||||
|
(Unaudited) |
|||||||||||
|
Assets |
|||||||||||
|
Assets |
|||||||||||
|
Cash and cash equivalents |
$ |
190,690 |
$ |
231,964 |
|||||||
|
Restricted cash |
1,889 |
1,875 |
|||||||||
|
Due from clearing brokers |
40,875 |
51,334 |
|||||||||
|
Securities and other investments
owned, at fair value |
949,868 |
1,092,106 |
|||||||||
|
Securities borrowed |
2,050,079 |
2,870,939 |
|||||||||
|
Accounts receivable, net of allowance
for credit losses of $7,122 and $7,339 as of March 31, 2024 and December 31, 2023,
respectively |
123,797 |
115,496 |
|||||||||
|
Due from related parties |
92 |
172 |
|||||||||
|
Loans receivable, at fair value
(includes $355,287 and $387,657 from related parties as of March 31, 2024 and December 31,
2023, respectively) |
452,496 |
532,419 |
|||||||||
|
Prepaid expenses and other assets |
246,402 |
237,327 |
|||||||||
|
Operating lease right-of-use assets |
84,217 |
87,605 |
|||||||||
|
Property and equipment, net |
24,146 |
25,206 |
|||||||||
|
Goodwill |
471,636 |
472,326 |
|||||||||
|
Other intangible assets, net |
311,850 |
322,014 |
|||||||||
|
Deferred income taxes |
49,607 |
33,595 |
|||||||||
|
Total assets |
$ |
4,997,644 |
$ |
6,074,378 |
|||||||
|
Liabilities
and Equity |
|||||||||||
|
Liabilities |
|||||||||||
|
Accounts payable |
$ |
44,791 |
$ |
44,550 |
|||||||
|
Accrued expenses and other liabilities |
253,153 |
273,193 |
|||||||||
|
Deferred revenue |
68,643 |
71,504 |
|||||||||
|
Due to related parties and partners |
1,763 |
2,731 |
|||||||||
|
Securities sold not yet purchased |
6,423 |
8,601 |
|||||||||
|
Securities loaned |
2,041,169 |
2,859,306 |
|||||||||
|
Operating lease liabilities |
95,645 |
98,563 |
|||||||||
|
Notes payable |
14,325 |
19,391 |
|||||||||
|
Revolving credit facility |
22,197 |
43,801 |
|||||||||
|
Term loans, net |
596,262 |
625,151 |
|||||||||
|
Senior notes payable, net |
1,553,616 |
1,668,021 |
|||||||||
|
Total liabilities |
4,697,987 |
5,714,812 |
|||||||||
|
Total B. Riley Financial, Inc.
stockholders' equity |
228,449 |
291,117 |
|||||||||
|
Noncontrolling interests |
71,208 |
68,449 |
|||||||||
|
Total equity |
299,657 |
359,566 |
|||||||||
|
Total liabilities and equity |
$ |
4,997,644 |
$ |
6,074,378 |
|||||||
|
B.
RILEY FINANCIAL, INC. AND SUBSIDIARIES Condensed
Consolidated Statements of Operations (Unaudited) (Dollars
in thousands, except share data) |
|||||||||||
|
Three
Months Ended |
|||||||||||
|
March
31, |
|||||||||||
|
2024 |
2023 |
||||||||||
|
Revenues: |
|||||||||||
|
Services and fees |
$ |
257,303 |
$ |
235,559 |
|||||||
|
Trading (loss) income and fair value
adjustments on loans |
(29,868) |
51,568 |
|||||||||
|
Interest income - Loans and
securities lending |
59,944 |
77,186 |
|||||||||
|
Sale of goods |
55,653 |
67,777 |
|||||||||
|
Total revenues |
343,032 |
432,090 |
|||||||||
|
Operating expenses: |
|||||||||||
|
Direct cost of services |
61,126 |
54,397 |
|||||||||
|
Cost of goods sold |
39,615 |
47,626 |
|||||||||
|
Selling, general and administrative
expenses |
209,548 |
212,627 |
|||||||||
|
Restructuring charge |
789 |
93 |
|||||||||
|
Interest expense - Securities lending
and loan participations sold |
35,383 |
32,424 |
|||||||||
|
Total operating expenses |
346,461 |
347,167 |
|||||||||
|
Operating (loss) income |
(3,429) |
84,923 |
|||||||||
|
Other income (expense): |
|||||||||||
|
Interest income |
669 |
2,574 |
|||||||||
|
Dividend income |
11,815 |
13,204 |
|||||||||
|
Realized and unrealized losses on
investments |
(29,545) |
(28,442) |
|||||||||
|
Change in fair value of financial
instruments and other |
314 |
(209) |
|||||||||
|
Loss from equity investments |
(4) |
(10) |
|||||||||
|
Interest expense |
(44,864) |
(47,561) |
|||||||||
|
(Loss) income before income taxes |
(65,044) |
24,479 |
|||||||||
|
Benefit from (provision for) income
taxes |
17,090 |
(7,919) |
|||||||||
|
Net (loss) income |
(47,954) |
16,560 |
|||||||||
|
Net income (loss) attributable to
noncontrolling interests |
|||||||||||
|
and redeemable noncontrolling
interests |
1,211 |
(595) |
|||||||||
|
Net (loss) income attributable to B.
Riley Financial, Inc. |
(49,165) |
17,155 |
|||||||||
|
Preferred stock dividends |
2,015 |
2,012 |
|||||||||
|
Net (loss) income available to common
shareholders |
$ |
(51,180) |
$ |
15,143 |
|||||||
|
Basic (loss) income per common share |
$ |
(1.71) |
$ |
0.53 |
|||||||
|
Diluted (loss) income per common share |
$ |
(1.71) |
$ |
0.51 |
|||||||
|
Weighted average basic common shares
outstanding |
29,989,584 |
28,585,337 |
|||||||||
|
Weighted average diluted common
shares outstanding |
29,989,584 |
29,513,435 |
|||||||||
|
B.
RILEY FINANCIAL, INC. AND SUBSIDIARIES Adjusted
EBITDA(4) and Operating
Adjusted EBITDA(5) Reconciliations (Unaudited) (Dollars
in thousands) |
|||||||||||
|
Three
Months Ended |
|||||||||||
|
March
31, |
|||||||||||
|
2024 |
2023 |
||||||||||
|
Net (loss) income attributable to B.
Riley Financial, Inc. |
$ |
(49,165) |
$ |
17,155 |
|||||||
|
Adjustments: |
|||||||||||
|
(Benefit from) provision for income
taxes |
(17,090) |
7,919 |
|||||||||
|
Interest expense |
44,864 |
47,561 |
|||||||||
|
Interest income |
(669) |
(2,574) |
|||||||||
|
Share based payments |
8,682 |
13,746 |
|||||||||
|
Depreciation and amortization |
11,137 |
13,077 |
|||||||||
|
Restructuring charge |
789 |
93 |
|||||||||
|
Transactions related costs and other |
1,519 |
(2,146) |
|||||||||
|
Total EBITDA adjustments |
49,232 |
77,676 |
|||||||||
|
Adjusted EBITDA(4) |
$ |
67 |
$ |
94,831 |
|||||||
|
Operating EBITDA Adjustments: |
|||||||||||
|
Trading loss (income) and fair value
adjustments on loans |
29,868 |
(51,568) |
|||||||||
|
Realized and unrealized losses on
investments |
29,545 |
28,442 |
|||||||||
|
Fixed Income Spread |
6,052 |
8,116 |
|||||||||
|
Other investment related expenses |
253 |
8,421 |
|||||||||
|
Total Operating EBITDA Adjustments |
65,718 |
(6,589) |
|||||||||
|
Operating Adjusted EBITDA(5) |
$ |
65,785 |
$ |
88,242 |
|||||||
|
B.
RILEY FINANCIAL, INC. AND SUBSIDIARIES Operating
Revenues(3) Reconciliation (Unaudited) (Dollars
in thousands) |
|||||||||||
|
Three
Months Ended |
|||||||||||
|
March
31, |
|||||||||||
|
2024 |
2023 |
||||||||||
|
Total Revenues |
$ |
343,032 |
$ |
432,090 |
|||||||
|
Operating Revenues Adjustments: |
|||||||||||
|
Trading loss (income) and fair value
adjustments on loans |
29,868 |
(51,568) |
|||||||||
|
Fixed Income Spread |
6,052 |
8,116 |
|||||||||
|
Total Revenues Adjustments |
35,920 |
(43,452) |
|||||||||
|
Operating Revenues(3) |
$ |
378,952 |
$ |
388,638 |
|||||||
|
B.
RILEY FINANCIAL, INC. AND SUBSIDIARIES Revenues
Reconciliation (Unaudited) (Dollars
in thousands) |
|||||||||||
|
Three
Months Ended |
|||||||||||
|
March
31, |
|||||||||||
|
2024 |
2023 |
||||||||||
|
Revenues: |
|||||||||||
|
Capital Markets |
$ |
89,823 |
$ |
185,411 |
|||||||
|
Wealth Management |
51,782 |
49,814 |
|||||||||
|
Auction and Liquidation |
5,780 |
5,660 |
|||||||||
|
Financial Consulting |
35,085 |
25,010 |
|||||||||
|
Communications |
82,366 |
86,919 |
|||||||||
|
Consumer Products |
51,522 |
65,694 |
|||||||||
|
All Other |
26,674 |
13,582 |
|||||||||
|
Total Revenues |
$ |
343,032 |
$ |
432,090 |
|||||||
|
B.
RILEY FINANCIAL, INC. AND SUBSIDIARIES Operating
(Loss) Income Reconciliation (Unaudited) (Dollars
in thousands) |
|||||||||||
|
Three
Months Ended |
|||||||||||
|
March
31, |
|||||||||||
|
2024 |
2023 |
||||||||||
|
Operating (Loss) Income: |
|||||||||||
|
Capital Markets |
$ |
445 |
$ |
86,020 |
|||||||
|
Wealth Management |
1,679 |
1,373 |
|||||||||
|
Auction and Liquidation |
2,028 |
200 |
|||||||||
|
Financial Consulting |
6,140 |
3,783 |
|||||||||
|
Communications |
8,050 |
10,783 |
|||||||||
|
Consumer Products |
(3,406) |
(1,614) |
|||||||||
|
All Other |
(18,365) |
(15,622) |
|||||||||
|
Total Operating (Loss) Income |
$ |
(3,429) |
$ |
84,923 |
|||||||
|
B.
RILEY FINANCIAL, INC. AND SUBSIDIARIES Capital
Markets Operating Revenues(3)
Reconciliation (Unaudited) (Dollars
in thousands) |
|||||||||||
|
Three
Months Ended |
|||||||||||
|
March
31, |
|||||||||||
|
Capital Markets |
2024 |
2023 |
|||||||||
|
Total Revenues |
$ |
89,823 |
$ |
185,411 |
|||||||
|
Operating Revenues Adjustments: |
|||||||||||
|
Trading loss (income) and fair value
adjustments on loans |
30,468 |
(50,296) |
|||||||||
|
Fixed Income Spread |
5,253 |
7,131 |
|||||||||
|
Total Revenues Adjustments |
35,721 |
(43,165) |
|||||||||
|
Operating Revenues(3) |
$ |
125,544 |
$ |
142,246 |
|||||||
|
B.
RILEY FINANCIAL, INC. AND SUBSIDIARIES Capital
Markets Segment Operating Income(6)
Reconciliation (Unaudited) (Dollars
in thousands) |
|||||||||||
|
Three
Months Ended |
|||||||||||
|
March
31, |
|||||||||||
|
Capital Markets |
2024 |
2023 |
|||||||||
|
Segment Income |
$ |
445 |
$ |
86,020 |
|||||||
|
Operating Revenues Adjustments: |
|||||||||||
|
Trading loss (income) and fair value
adjustments on loans |
30,468 |
(50,296) |
|||||||||
|
Fixed Income Spread |
5,253 |
7,131 |
|||||||||
|
Other investment related expenses |
— |
8,421 |
|||||||||
|
Total Operating Income Adjustments |
35,721 |
(34,744) |
|||||||||
|
Segment Operating Income(6) |
$ |
36,166 |
$ |
51,276 |
|||||||
|
Contacts |
|
|
Investors |
Media |
|
Mike Frank |
Jo Anne McCusker |
|
(212) 409-2424 |
(646) 885-5425 |
SOURCE B. Riley Financial