B. Riley Financial Files 2022 Annual Report on Form 10-K

Rhea-AI Summary

B. Riley Financial, a diversified financial services platform, has filed its Annual Report on Form 10-K for the fiscal year ending December 31, 2022. The report includes restated financial statements, correcting the classification of dividends and investment gains from 'Revenue' to 'Other Income.' This reclassification did not affect previously reported net income, earnings per share, or adjusted EBITDA. Key figures include total revenues of $1,080,670, operating expenses of $1,011,222, and a net loss of $167,837 for 2022. The full report can be accessed on the company's investor relations website.

Positive

• No significant positive aspects reported.

Negative

• Net loss of $167,837 for the fiscal year 2022.
• Total revenues adjusted down to $1,080,670 from $1,245,875 due to reclassification.

LOS ANGELES, March 16, 2023 /PRNewswire/ -- B. Riley Financial, Inc. (NASDAQ: RILY) ("B. Riley" or the "Company"), a diversified financial services platform, today announced the filing of its Annual Report on Form 10-K for the fiscal year ended December 31, 2022.

Certain previously issued financial statements have been restated to correct the classification of dividends received and realized and unrealized gains (losses) on certain investments held by non-regulated entities from within "Revenue" to "Other Income" in the Company's consolidated statement of operations.

This reclassification had no impact on previously issued consolidated balance sheets, net income, earnings per share (EPS), adjusted EBITDA, or operating adjusted EBITDA.

Additional information related to operating and investment metrics can be found in the revised Fourth Quarter 2022 Financial Supplement which is available on the Company's investor relations website. Information about the Company's use of non-GAAP financial measures is provided under "Use of Non-GAAP Financial Measures."

These results have been recast in the corresponding tables for the periods presented.

			Year Ended									Year Ended									Year Ended
			December 31, 2022									December 31, 2021									December 31, 2020
	(Dollars in thousands)		As Previously Reported			Adjustments			As Revised			As Previously Reported			Adjustments			As Restated			As Previously Reported			Adjustments			As Restated
	Total Revenues		$	915,465		$	165,205		$	1,080,670		$	1,740,561		$	(185,863)		$	1,554,698		$	902,721		$	(68,504)		$	834,217
	Total Operating Expenses			(1,011,222)			—			(1,011,222)			(1,040,170)			—			(1,040,170)			(557,956)			—			(557,956)
	Other (Expenses) Income			(124,693)			(165,205)			(289,898)			(85,629)			185,863			100,234			(65,308)			68,504			3,196
	(Loss) Income Before Income Taxes			(220,450)			—			(220,450)			614,762			—			614,762			279,457			—			279,457
	Net (Loss) Income Available to Common Shareholders		$	(167,837)		$	—		$	(167,837)		$	437,597		$	—		$	437,597		$	200,438		$	—		$	200,438
	Diluted (Loss) Income per Common Share		$	(5.95)		$	—		$	(5.95)		$	15.09		$	—		$	15.09		$	7.56		$	—		$	7.56
			Year Ended									Year Ended									Year Ended
			December 31, 2022									December 31, 2021									December 31, 2020
	(Dollars in thousands)		As Previously Reported			Adjustments			As Revised			As Previously Reported			Adjustments			As Restated			As Previously Reported			Adjustments			As Restated
	Operating Revenues (2)		$	1,319,172		$	(35,874)		$	1,283,298		$	1,353,885		$	(19,732)		$	1,334,153		$	798,703		$	(21,163)		$	777,540
	Investment (Loss) Gains (4)			(403,707)			201,079			(202,628)			386,676			(166,131)			220,545			104,018			(47,341)			56,677
	Total Revenues		$	915,465		$	165,205		$	1,080,670		$	1,740,561		$	(185,863)		$	1,554,698		$	902,721		$	(68,504)		$	834,217
	Operating Adjusted EBITDA (3)		$	366,458		$	—		$	366,458		$	422,029		$	—		$	422,029		$	311,673		$	—		$	311,673
	Investment Adjusted EBITDA (5)			(334,176)			—			(334,176)			340,465			—			340,465			95,145			—			95,145
	Total Adjusted EBITDA (1)		$	32,282		$	—		$	32,282		$	762,494		$	—		$	762,494		$	406,818		$	—		$	406,818
			Three Months Ended									Three Months Ended
			December 31, 2022									December 31, 2021
	(Dollars in thousands)		As Previously Reported			Adjustments			As Revised			As Previously Reported			Adjustments			Restated
	Total Revenues		$	326,813		$	55,279		$	382,092		$	422,110		$	(21,796)		$	400,314
	Total Operating Expenses			(372,094)			—			(372,094)			(301,588)			—			(301,588)
	Other (Expenses) Income			(42,172)			(55,279)			(97,451)			(29,229)			21,796			(7,433)
	(Loss) Income Before Income Taxes			(87,453)			—			(87,453)			91,293			—			91,293
	Net (Loss) Income Available to Common Shareholders		$	(59,447)		$	—		$	(59,447)		$	62,182		$	—		$	62,182
	Diluted (Loss) Income per Common Share		$	(2.08)		$	—		$	(2.08)		$	2.08		$	—		$	2.08
			Three Months Ended									Three Months Ended
			December 31, 2022									December 31, 2021
	(Dollars in thousands)		As Previously Reported			Adjustments			As Revised			As Previously Reported			Adjustments			Restated
	Operating Revenues (2)		$	450,357		$	(9,595)		$	440,762		$	353,252		$	(7,786)		$	345,466
	Investment (Loss) Gains (4)			(123,544)			64,874			(58,670)			68,858			(14,010)			54,848
	Total Revenues		$	326,813		$	55,279		$	382,092		$	422,110		$	(21,796)		$	400,314
	Operating Adjusted EBITDA (3)		$	101,807		$	—		$	101,807		$	106,097		$	—		$	106,097
	Investment Adjusted EBITDA (5)			(115,847)			—			(115,847)			31,928			—			31,928
	Total Adjusted EBITDA (1)		$	(14,040)		$	—		$	(14,040)		$	138,025		$	—		$	138,025

This reclassification had no impact on previously issued consolidated balance sheets, net income, earnings per share (EPS), adjusted EBITDA, or operating adjusted EBITDA.

The Company's Annual Report on Form 10-K is available in the Investor Relations section of the Company's website at ir.brileyfin.com under "SEC Filings," as well as on the SEC's website at www.sec.gov.

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 Revenue 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.

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 (loss) 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, aforementioned adjustments for adjusted EBITDA, as well as trading income (loss) and fair value adjustments on loans, realized and unrealized gains (losses) on investments, and other investment related expenses, and (iv) in the case of investment adjusted EBITDA this includes trading income (loss) and fair value adjustments on loans and realized and unrealized gains (losses) on investments, net of other investment related expenses, 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, 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.

 

B. RILEY FINANCIAL, INC.
Consolidated Balance Sheets
(Dollars in thousands, except par value)
							December 31,
							2022			2021
Assets
Assets
	Cash and cash equivalents						$	268,618		$	278,933
	Restricted cash							2,308			927
	Due from clearing brokers							48,737			29,657
	Securities and other investments owned, at fair value							1,129,268			1,532,095
	Securities borrowed							2,343,327			2,090,966
	Accounts receivable, net							149,110			49,673
	Due from related parties							1,081			2,074
	Loans receivable, at fair value (includes $98,729 and $167,744 from related parties as of December 31, 2022 and December 31, 2021, respectively)							701,652			873,186
	Prepaid expenses and other assets							460,696			463,502
	Operating lease right-of-use assets							88,593			56,969
	Property and equipment, net							27,141			12,870
	Goodwill							512,595			250,568
	Other intangible assets, net							374,098			207,651
	Deferred income taxes							3,978			2,848
		Total assets					$	6,111,202		$	5,851,919
Liabilities and Equity
Liabilities
	Accounts payable						$	81,384		$	6,326
	Accrued expenses and other liabilities							322,974			343,750
	Deferred revenue							85,441			69,507
	Deferred income taxes							29,548			93,055
	Due to related parties and partners							2,210			—
	Due to clearing brokers							19,307			69,398
	Securities sold not yet purchased							5,897			28,623
	Securities loaned							2,334,031			2,088,685
	Operating lease liabilities							99,124			69,072
	Notes payable							25,263			357
	Loan participations sold							—			—
	Revolving credit facility							127,678			80,000
	Term loans, net							572,079			346,385
	Senior notes payable, net							1,721,751			1,606,560
		Total liabilities						5,426,687			4,801,718
Commitments and contingencies
Redeemable noncontrolling interests in equity of subsidiaries								178,622			345,000
B. Riley Financial, Inc. equity:
	Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 4,545 and 4,512 issued and
	outstanding as of December 31, 2022 and December 31, 2021, respectively; liquidation preference
	of $113,615 and $112,790 as of December 31, 2022 and December 31, 2021, respectively.							—			—
	Common stock, $0.0001 par value; 100,000,000 shares authorized; 28,523,764 and 27,591,028 issued and outstanding as of December 31, 2022 and December 31, 2021, respectively.							3			3
	Additional paid-in capital							494,201			413,486
	(Accumulated deficit) retained earnings							(45,220)			248,862
	Accumulated other comprehensive loss							(2,470)			(1,080)
		Total B. Riley Financial, Inc. stockholders' equity						446,514			661,271
Noncontrolling interests								59,379			43,930
		Total equity						505,893			705,201
			Total liabilities and equity				$	6,111,202		$	5,851,919

 

B. RILEY FINANCIAL, INC.
Consolidated Statements of Operations
(Dollars in thousands, except share data)
								Year Ended December 31,
								2022			2021			2020
									As Revised			As Restated			As Restated
Revenues:
	Services and fees							$	895,623		$	1,153,225		$	645,906
	Trading (loss) income and fair value adjustments on loans								(202,628)			220,545			56,677
	Interest income - Loans and securities lending								245,400			122,723			102,499
	Sale of goods								142,275			58,205			29,135
		Total revenues							1,080,670			1,554,698			834,217
Operating expenses:
	Direct cost of services								142,455			54,390			60,451
	Cost of goods sold								78,647			26,953			12,460
	Selling, general and administrative expenses								714,614			906,196			428,537
	Restructuring charge								9,011			—			1,557
	Impairment of tradenames								—			—			12,500
	Interest expense - Securities lending and loan participations sold								66,495			52,631			42,451
		Total operating expenses							1,011,222			1,040,170			557,956
		Operating income							69,448			514,528			276,261
Other income (expense):
	Interest income								2,735			229			564
	Dividend income								35,874			19,732			21,163
	Realized and unrealized (losses) gains on investments								(201,079)			166,131			47,341
	Change in fair value of financial instruments and other								10,188			3,796			—
	Income from equity method investments								3,570			2,801			(623)
	Interest expense								(141,186)			(92,455)			(65,249)
		(Loss) income before income taxes							(220,450)			614,762			279,457
Benefit from (provision for) income taxes									63,856			(163,960)			(75,440)
		Net (loss) income							(156,594)			450,802			204,017
Net (loss) income attributable to noncontrolling interests
and redeemable noncontrolling interests									3,235			5,748			(1,131)
		Net (loss) income attributable to B. Riley Financial, Inc.							(159,829)			445,054			205,148
Preferred stock dividends									8,008			7,457			4,710
		Net (loss) income available to common shareholders						$	(167,837)		$	437,597		$	200,438
Basic (loss) income per common share								$	(5.95)		$	15.99		$	7.83
Diluted (loss) income per common share								$	(5.95)		$	15.09		$	7.56
Weighted average basic common shares outstanding									28,188,530			27,366,292			25,607,278
Weighted average diluted common shares outstanding									28,188,530			29,005,602			26,508,397

 

B. RILEY FINANCIAL, INC.
Consolidated Statements of Operations
(Unaudited)
(Dollars in thousands, except share data)
							Year Ended December 31,
							2022									2021									2020
							As Previously Reported			Adjustments			As Revised			As Previously Reported			Adjustments			As Restated			As Previously Reported			Adjustments			As Restated
Revenues:
	Services and fees						$	931,497		$	(35,874)		$	895,623		$	1,172,957		$	(19,732)		$	1,153,225		$	667,069		$	(21,163)		$	645,906
	Trading (loss) income and fair value adjustments on loans							(403,707)			201,079			(202,628)			386,676			(166,131)			220,545			104,018			(47,341)			56,677
	Interest income - Loans and securities lending							245,400			—			245,400			122,723			—			122,723			102,499			—			102,499
	Sale of goods							142,275			—			142,275			58,205			—			58,205			29,135			—			29,135
		Total revenues						915,465			165,205			1,080,670			1,740,561			(185,863)			1,554,698			902,721			(68,504)			834,217
Operating expenses:
	Direct cost of services							142,455			—			142,455			54,390			—			54,390			60,451			—			60,451
	Cost of goods sold							78,647			—			78,647			26,953			—			26,953			12,460			—			12,460
	Selling, general and administrative expenses							714,614			—			714,614			906,196			—			906,196			428,537			—			428,537
	Restructuring charge							9,011			—			9,011			—			—			—			1,557			—			1,557
	Impairment of tradenames							—			—			—			—			—			—			12,500			—			12,500
	Interest expense - Securities lending and loan participations sold							66,495			—			66,495			52,631			—			52,631			42,451			—			42,451
		Total operating expenses						1,011,222			—			1,011,222			1,040,170			—			1,040,170			557,956			—			557,956
		Operating (loss) income						(95,757)			165,205			69,448			700,391			(185,863)			514,528			344,765			(68,504)			276,261
Other income (expense):
	Interest income							2,735			—			2,735			229			—			229			564			—			564
	Dividend income							—			35,874			35,874			—			19,732			19,732			—			21,163			21,163
	Realized and unrealized (losses) gains on investments							—			(201,079)			(201,079)			—			166,131			166,131			—			47,341			47,341
	Change in fair value of financial instruments and other							10,188			—			10,188			3,796			—			3,796			—			—			—
	Income from equity method investments							3,570			—			3,570			2,801			—			2,801			(623)			—			(623)
	Interest expense							(141,186)			—			(141,186)			(92,455)			—			(92,455)			(65,249)			—			(65,249)
		(Loss) income before income taxes						(220,450)			—			(220,450)			614,762			—			614,762			279,457			—			279,457
Benefit from (provision for) income taxes								63,856			—			63,856			(163,960)			—			(163,960)			(75,440)			—			(75,440)
		Net (loss) income						(156,594)			—			(156,594)			450,802			—			450,802			204,017			—			204,017
Net income attributable to noncontrolling interests and redeemable noncontrolling interests								3,235			—			3,235			5,748			—			5,748			(1,131)			—			(1,131)
		Net (loss) income attributable to B. Riley Financial, Inc.						(159,829)			—			(159,829)			445,054			—			445,054			205,148			—			205,148
Preferred stock dividends								8,008			—			8,008			7,457			—			7,457			4,710			—			4,710
		Net (loss) income available to common shareholders					$	(167,837)		$	—		$	(167,837)		$	437,597		$	—		$	437,597		$	200,438		$	—		$	200,438
Basic (loss) income per common share							$	(5.95)					$	(5.95)		$	15.99					$	15.99		$	7.83					$	7.83
Diluted (loss) income per common share							$	(5.95)					$	(5.95)		$	15.09					$	15.09		$	7.56					$	7.56
Weighted average basic common shares outstanding								28,188,530						28,188,530			27,366,292						27,366,292			25,607,278						25,607,278
Weighted average diluted common shares outstanding								28,188,530						28,188,530			29,005,602						29,005,602			26,508,397						26,508,397

 

B. RILEY FINANCIAL, INC.
Consolidated Statements of Operations
(Unaudited)
(Dollars in thousands, except share data)
							Three Months Ended
							December 31,
							2022			2021
							As Revised			As Restated
Revenues:
	Services and fees						$	243,837		$	308,062
	Trading (loss) income and fair value adjustments on loans							(58,670)			54,848
	Interest income - Loans and securities lending							62,545			33,443
	Sale of goods							134,380			3,961
		Total revenues						382,092			400,314
Operating expenses:
	Direct cost of services							68,496			12,955
	Cost of goods sold							71,313			5,559
	Selling, general and administrative expenses							208,552			270,712
	Restructuring charge							995			—
	Interest expense - Securities lending and loan participations sold							22,738			12,362
		Total operating expenses						372,094			301,588
		Operating income						9,998			98,726
Other income (expense):
	Interest income							1,482			54
	Dividend income							9,595			7,786
	Realized and unrealized (losses) gains on investments							(64,874)			14,010
	Change in fair value of financial instruments and other							460			(4,471)
	Income from equity method investments							285			1,629
	Interest expense							(44,399)			(26,441)
		(Loss) income before income taxes						(87,453)			91,293
Benefit from (provision for) income taxes								23,998			(23,847)
		Net (loss) income						(63,455)			67,446
Net (loss) income attributable to noncontrolling interests
and redeemable noncontrolling interests								(6,010)			3,274
		Net (loss) income attributable to B. Riley Financial, Inc.						(57,445)			64,172
Preferred stock dividends								2,002			1,990
		Net (loss) income available to common shareholders					$	(59,447)		$	62,182
Basic (loss) income per common share							$	(2.08)		$	2.26
Diluted (loss) income per common share							$	(2.08)		$	2.08
Weighted average basic common shares outstanding								28,545,714			27,569,188
Weighted average diluted common shares outstanding								28,545,714			29,840,704

 

B. RILEY FINANCIAL, INC.
Consolidated Statements of Operations
(Unaudited)
(Dollars in thousands, except share data)
							Three Months Ended December 31,
							2022									2021
							As Previously Reported			Adjustments			As Revised			As Previously Reported			Adjustments			As Restated
Revenues:
	Services and fees						$	253,432		$	(9,595)		$	243,837		$	315,848		$	(7,786)		$	308,062
	Trading (loss) income and fair value adjustments on loans							(123,544)			64,874			(58,670)			68,858			(14,010)			54,848
	Interest income - Loans and securities lending							62,545			—			62,545			33,443			—			33,443
	Sale of goods							134,380			—			134,380			3,961			—			3,961
		Total revenues						326,813			55,279			382,092			422,110			(21,796)			400,314
Operating expenses:
	Direct cost of services							68,496			—			68,496			12,955			—			12,955
	Cost of goods sold							71,313			—			71,313			5,559			—			5,559
	Selling, general and administrative expenses							208,552			—			208,552			270,712			—			270,712
	Restructuring charge							995			—			995			—			—			—
	Interest expense - Securities lending and loan participations sold							22,738			—			22,738			12,362			—			12,362
		Total operating expenses						372,094			—			372,094			301,588			—			301,588
		Operating (loss) income						(45,281)			55,279			9,998			120,522			(21,796)			98,726
Other income (expense):
	Interest income							1,482			—			1,482			54			—			54
	Dividend income							—			9,595			9,595			—			7,786			7,786
	Realized and unrealized (losses) gains on investments							—			(64,874)			(64,874)			—			14,010			14,010
	Change in fair value of financial instruments and other							460			—			460			(4,471)			—			(4,471)
	Income from equity method investments							285			—			285			1,629			—			1,629
	Interest expense							(44,399)			—			(44,399)			(26,441)			—			(26,441)
		(Loss) income before income taxes						(87,453)			—			(87,453)			91,293			—			91,293
Benefit from (provision for) income taxes								23,998			—			23,998			(23,847)			—			(23,847)
		Net (loss) income						(63,455)			—			(63,455)			67,446			—			67,446
Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests								(6,010)			—			(6,010)			3,274			—			3,274
		Net (loss) income attributable to B. Riley Financial, Inc.						(57,445)			—			(57,445)			64,172			—			64,172
Preferred stock dividends								2,002			—			2,002			1,990			—			1,990
		Net (loss) income available to common shareholders					$	(59,447)		$	—		$	(59,447)		$	62,182		$	—		$	62,182
Basic (loss) income per common share							$	(2.08)					$	(2.08)		$	2.26					$	2.26
Diluted (loss) income per common share							$	(2.08)					$	(2.08)		$	2.08					$	2.08
Weighted average basic common shares outstanding								28,545,714						28,545,714			27,569,188						27,569,188
Weighted average diluted common shares outstanding								28,545,714						28,545,714			29,840,704						29,840,704

 

B. RILEY FINANCIAL, INC.
Adjusted EBITDA and Operating Adjusted EBITDA Reconciliation
(Unaudited)
(Dollars in thousands)
								Year Ended December 31,
								2022			2021			2020
Net (loss) income attributable to B. Riley Financial, Inc.								$	(159,829)		$	445,054		$	205,148
Adjustments:
	(Benefit from) provision for income taxes								(63,856)			163,960			75,440
	Interest expense								141,186			92,455			65,249
	Interest income								(2,735)			(229)			(564)
	Share based payments								61,140			36,011			18,588
	Depreciation and amortization								39,969			25,871			19,369
	Restructuring charge								9,011			—			1,557
	Gain on extinguishment of loans								(1,102)			(6,509)			—
	Impairment of tradenames								—			—			12,500
	Transactions related costs and other								8,498			5,881			9,531
		Total EBITDA Adjustments							192,111			317,440			201,670
			Adjusted EBITDA					$	32,282		$	762,494		$	406,818
Operating EBITDA Adjustments:
	Trading loss (income) and fair value adjustments on loans								202,628			(220,545)			(56,677)
	Realized and unrealized losses (gains) on investments								201,079			(166,131)			(47,341)
	Other investment related expenses								(69,531)			46,211			8,873
		Total Operating EBITDA Adjustments							334,176			(340,465)			(95,145)
Operating Adjusted EBITDA								$	366,458		$	422,029		$	311,673

 

B. RILEY FINANCIAL, INC.
Adjusted EBITDA and Operating Adjusted EBITDA Reconciliation
(Unaudited)
(Dollars in thousands)
							Three Months Ended
							December 31,
							2022			2021
Net (loss) income attributable to B. Riley Financial, Inc.							$	(57,445)		$	64,172
Adjustments:
	(Benefit from) provision for income taxes							(23,998)			23,847
	Interest expense							44,399			26,441
	Interest income							(1,482)			(54)
	Share based payments							15,312			12,503
	Depreciation and amortization							13,443			6,805
	Restructuring charge							995			—
	Gain on extinguishment of loans							—			—
	Transactions related costs and other							(5,264)			4,311
		Total EBITDA Adjustments						43,405			73,853
			Adjusted EBITDA				$	(14,040)		$	138,025
Operating EBITDA Adjustments:
	Trading loss (income) and fair value adjustments on loans							58,670			(54,848)
	Realized and unrealized losses (gains) on investments							64,874			(14,010)
	Other investment related expenses							(7,697)			36,930
		Total Operating EBITDA Adjustments						115,847			(31,928)
Operating Adjusted EBITDA							$	101,807		$	106,097

 

Contacts
Investors	Media
Mike Frank	Jo Anne McCusker
ir@brileyfin.com	press@brileyfin.com
(212) 409-2424	(646) 885-5425

 

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SOURCE B. Riley Financial

FAQ

What is the net loss reported by B. Riley Financial for the year 2022?

B. Riley Financial reported a net loss of $167,837 for the fiscal year 2022.

How much were the total revenues for B. Riley Financial in 2022?

Total revenues for B. Riley Financial in 2022 were reported as $1,080,670.

What changes were made to the financial statements in B. Riley's 2022 report?

Financial statements were restated to classify dividends and gains as 'Other Income' instead of 'Revenue.'

Did the restatement of financial statements affect the earnings per share for B. Riley Financial?

No, the restatement did not impact the earnings per share, net income, or adjusted EBITDA.

Where can I find B. Riley Financial's Annual Report on Form 10-K?

The Annual Report is available on B. Riley Financial's investor relations website and the SEC's website.