B. Riley Financial Reports Fourth Quarter and Full Year 2022 Results;
Declares $1.00 Dividend
Q4 2022 GAAP Net Loss of ($59.4 million)
Q4 2022 Total Revenues of $326.8 million
Q4 2022 Operating Revenues of $450.4 million
Q4 2022 Operating Adjusted EBITDA of $101.8 million, had guided to $90-100 million
Q4 2022 Investment loss of ($123.5 million), had guided to ($125-$150 million)
Declares Quarterly Dividend of $1.00 per common share
LOS ANGELES, February 22, 2023 - B. Riley Financial, Inc. (NASDAQ: RILY) ("B. Riley" or the "Company"), a diversified
financial services platform, today released results for the three and twelve month periods ending December 31, 2022.
Q4 and FY 2022 Summary and Highlights
- Total revenues were $326.8 million for the quarter and $915.5 million for the year.
- Operating revenues increased to $450.4 million for the quarter and $1.3 billion for the year.
- Net losses of ($59.4 million) for the quarter and ($167.8 million) for the year were primarily driven by softness in small-cap markets throughout 2022 and related impact on investments.
- Operating adjusted EBITDA was $101.8 million for the quarter and $366.5 million for the year.
- Investment losses of ($123.5 million) for the quarter and ($403.7 million) for the year primarily reflected mark-to-market losses in the Company's equities portfolio.
- Completed multiple acquisitions during 2022, which are expected to enhance uncorrelated revenues and cash flow in
2023 and beyond.
Bryant Riley, Chairman and Co-Chief Executive Officer of B. Riley Financial, commented: "Despite a challenging Capital
Markets environment, we are proud to have delivered the second-best year of Operating Adjusted EBITDA in our firm's
history. This achievement is a testament to the resiliency and diversification our platform. Capital Markets began to
improve late in Q4 and this momentum has continued into Q1, which has us optimistic as our clients resume
opportunistically accessing capital. We are also beginning to see increased activity in our Liquidation and Real Estate
practices that are benefitting from pockets of distress."
Riley continued: "While our investments marks are not immune to broader market fluctuations, we believe the portfolio
is well-positioned heading into 2023. Further, we continue to find attractive opportunities to deploy our excess liquidity
in ways that competitively advantage our clients. We appreciate the trust our clients and colleagues place with us, and we
look forward to continuing to execute our strategy to create value for all B. Riley stakeholders."
Tom Kelleher, Co-Chief Executive Officer of B. Riley Financial, added: "Over the past year, we have focused on supporting
our clients by helping them deliver on their strategic business initiatives while navigating a liquidity restrained
environment. At the same time, we onboarded and integrated several new businesses, and we expect we will continue to
grow our platform both organically and through acquisitions. We look forward to expanding operational efficiencies
through 2023 and making further enhancements to strengthen our position long term."
Declaration of Common Dividend
The Company has declared a regular quarterly cash dividend of $1.00 per common share payable on or about March 23 to common stockholders of record as of March 10. Upon this payment, the Company will have returned $4.00 per share in cash dividends, totaling approximately $113 million, to common shareholders in fiscal year 2022.
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