income of $48.6 million, $1.69 diluted EPS
Total revenues increased to $381.5 million, total adjusted EBITDA of $114.1 million
Operating revenues increased to $363.3 million, operating adjusted EBITDA of $101.1 million
Strong earnings driven by investment banking, in addition to wealth management, principal investments, and brands
Increases regular quarterly dividend to $1.00 from previous $0.50, declares $3.00 special
Total third quarter dividend of $4.00 per common share
Board of Directors approve new annual share repurchase plan of up to $50 million
LOS ANGELES, October 28, 2021 - B. Riley Financial, Inc. (NASDAQ: RILY), a diversified financial services company, today announced results for the three- and nine-month period ended September 30, 2021.
- Net income of $48.6 million, up 3% year-over-year
- Total revenues of $381.5 million, up 69% year-over-year
- Total adjusted EBITDA (1) of $114.1 million, up 21% year-over-year
- Operating revenues (2) of $363.3 million, up 87% year-over-year
- Operating adjusted EBITDA (3) of $101.1 million, up 50% year-over-year
Bryant Riley, Chairman and Co-Chief Executive Officer of B. Riley Financial, said: "We have never been more confident in the power of our combined platform and the opportunities we see ahead. In line with our stated commitment to return capital to our shareholders, we have increased our regular quarterly dividend to $1.00 and declared a special dividend of $3.00 for a total third quarter dividend of $4.00 per common share. Upon payment of our third quarter dividend, we will have returned a total of $9.00 per share, or approximately $247 million, in common stock dividends to shareholders for the first three quarters. The increase in our regular dividend reflects our increasing confidence in our recurring cash flows, as well as the continued growth in our episodic businesses. Our balance sheet continues to be very strong, and our capital base has continued to increase, reflecting the growing cash flows and strong fundamentals of our business. We acknowledge that our diversified business can be difficult to analyze and believe a recurring dividend is an important measure for our shareholders. Our goal is to continue to utilize our cash flows to enhance our business, make accretive acquisitions, and return capital to our shareholders. Over the last year, we have made meaningful progress in reducing our debt expense by redeeming two of our higher rate corporate bonds and issuing debt at a rate that is over 200 basis points lower. We will continue to seek opportunities to improve our capital structure in the coming quarters."
Tom Kelleher, Co-Chief Executive Officer of B. Riley Financial, added: "Over the last year, B. Riley Securities has established itself as a preferred investment banking partner for small- and mid-cap companies. Our investment banking division drove our strong quarterly performance, supported by contributions from our newly expanded wealth management division, cash flow generated by our principal investment companies, and growth in our brands. The momentum of our combined platform continues to benefit each of our distinct businesses. Our strengthened execution capabilities have enabled us to uncover additional new business opportunities while attracting talented professionals to our platform. During the quarter, we acquired 272 Capital in line with our stated intent to build out asset management and named a senior professional to lead the expansion of our fixed income division. We also added several quality financial advisors to our roster as we work to combine our legacy wealth management business with National Holdings. We are continuing to recruit across our business lines and believe our ability to attract talent of this caliber speaks to the value of our diversified platform."