Q2
GAAP Revenues of $42.7 million; Operating Revenues of $266.6 million
Q2
GAAP Net Loss of ($142.2 million), Operating Adjusted EBITDA of $74.2 million
Declares
Quarterly Dividend of $1.00 per common share
LOS ANGELES, July 28, 2022 /PRNewswire/ -- B. Riley
Financial, Inc. (NASDAQ: RILY) ("B. Riley" or the
"Company"), a diversified financial services platform, today
announced results for the three-month period ended June 30, 2022.
Bryant Riley, Chairman and
Co-Chief Executive Officer of B. Riley Financial, commented: "Our second quarter
results demonstrated the relative strength and ability of our non-cyclical businesses
to steadily perform amid disruptive markets. Periods of volatility have
historically presented our most attractive opportunities to differentiate
ourselves with clients, attract top talent, and generate sustainable share
gains across key business lines. We believe the current environment is no
exception."
"Despite the markdown on
our investments and declines in our underwriting business, our dynamic platform
has demonstrated continued resiliency. We have earned over $17.00 per share for
our shareholders since 2019, and despite a GAAP net loss of ($43.4 million)
over the trailing twelve-month period, we delivered operating EBITDA of $366
million in the same period, representing a meaningful increase compared to $114
million in 2019. Increasing contributions from less cyclical and less episodic
businesses have exceeded the capital needed to support our dividend while
providing us flexibility to continue to invest across our business."
"At the same time,
strategic investments remain an integral part of our business, as a strategy
that helps competitively advantage our clients. Our cash and investment
portfolio has been diversified to balance our allocation between debt and
equity-related investments. In our credit positions, we have demonstrated an
ability to structure lending opportunities that enable us to earn attractive
spreads with minimal impairments over time. The remainder of our portfolio is
focused on public and private small-cap companies where we have high conviction
in capital appreciation over our investment horizon. Securities in our
investment portfolio have exceeded the Russell 2000 Index in multiple market
cycles, having generated total returns of more than 90% to B. Riley since 2019.
As we look ahead, we remain optimistic about the total return potential of our
investment portfolio, as well as our ability to capitalize on opportunities
being presented by the current market dislocation."
Tom Kelleher, Co-Chief
Executive Officer of B. Riley Financial, added: "During the quarter, the balance of our
operating businesses continued to deliver steady cash flow to our platform
while performing to support our clients. Amid another transformative period for
B. Riley, we have made meaningful progress in expanding our existing businesses
while consolidating recent acquisitions. Our communications business with Lingo
serves as a leading source of recurring cash flow for our platform as financial
consulting performs steadily quarter-to-quarter and year-to-year. With
core capabilities in restructuring, asset disposition, and distressed
financing, we believe our diversified platform stands to benefit during periods
of market austerity. As we begin to realize synergies from combining National
Holdings and FocalPoint into our respective legacy wealth and investment
banking businesses, we are looking to the horizon and evaluating other
accretive acquisitions to accelerate our growth."
Declaration of Common
Dividend
B. Riley has declared a regular
quarterly cash dividend of $1.00 per common share which is payable on or about
August 23 to common stockholders of record as of August 11.
To read the full press release, click here.