B. Riley Financial Reports First Quarter 2021 Results; Declares $3.00 Dividend

Rhea-AI Summary

B. Riley Financial (NASDAQ: RILY) reported strong financial results for Q1 2021, including a net income of $252.9 million or $8.81 per diluted share. Total revenues reached $600.2 million, with operating revenues at $333.2 million, marking an 83% year-over-year increase. The company achieved significant investment gains of $266.9 million and completed the acquisition of National Holdings, enhancing its wealth management services. A quarterly dividend of $3.00 per share was declared, reflecting strong capital returns to shareholders.

Positive

• Net income of $252.9 million, or $8.81 per diluted share.
• Total revenues increased to $600.2 million, up from $206, a significant growth.
• Operating revenues grew by 83% year-over-year to $333.2 million.
• Investment gains of $266.9 million bolstered financial results.
• Completed acquisition of National Holdings, contributing to wealth management and capital markets.
• Declared a total dividend of $3.00 per share, highlighting shareholder returns.

Negative

• None.

LOS ANGELES, May 3, 2021 /PRNewswire/ -- B. Riley Financial, Inc. (NASDAQ: RILY), a diversified financial services company, today announced its financial results for the first quarter ended March 31, 2021.

First Quarter 2021 Highlights

• Net income available to common shareholders of $252.9 million, or $8.81 per diluted share
• Total quarterly revenues of $600.2 million, total adjusted EBITDA ⁽¹⁾ of $385.5 million
• Operating revenues ⁽²⁾ of $333.2 million vs. $182.2 million for Q1 2020
• Operating adjusted EBITDA ⁽³⁾ of $122.7 million vs. $70.9 million for Q1 2020
• Investment gains ⁽⁴⁾ of $266.9 million as of March 31, 2021
• Completed acquisition of National Holdings, enhancing wealth management and capital markets
• Declared total quarterly dividend of $3.00 per common share

Bryant Riley, Chairman and Co-Chief Executive Officer of B. Riley Financial, said: "Our first quarter performance again demonstrates the combined platform's strength and earnings power, with this period driven by particularly exceptional results from our investment banking group. Our results were enhanced by investment gains of approximately $267 million, coupled with a year-over-year increase of over 80 percent and 70 percent, respectively, for quarterly operating revenues and operating EBITDA. These results reflected the upside from capital markets in addition to steady and recurring contributions from the balance of our businesses."

Tom Kelleher, Co-Chief Executive Officer of B. Riley Financial, added: "During the quarter, we completed the acquisition of National Holdings and welcomed nearly 700 registered representatives to B. Riley. With $31 billion in combined assets as of March 31, the addition of National to wealth management creates meaningful scale and distribution for our overall platform."

"We also added a new risk and compliance practice that is in high demand by our customers and enhances our advisory services. As we continue to build on and deepen our core capabilities in capital markets, restructuring and advisory, we are seeing more opportunities and increased collaboration across our businesses," Kelleher stated. "With the diversity of our platform, we believe B. Riley is exceptionally well-positioned to support our clients and partners through both up and downcycles."

Riley added, "Our dividend of $3.00 per share approximates our operating free cash flow generated during the quarter and amounts to over $350 million in total capital distributed to our shareholders through dividends and share repurchases since 2017. With a quarter-end balance sheet supported by over $650 million in cash and investments net of debt, we feel a meaningful capital return policy is consistent with our shareholder commitment while allowing us to continue to aggressively invest in our business. We believe in the strength of our people and our platform to continue to deliver for all of our stakeholders in the years ahead."

Declaration of Common Stock Dividend
The Company's Board of Directors has approved a total quarterly dividend of $3.00 per share which includes the regular $0.50 dividend and a special dividend of $2.50 per share. The dividend is payable on or about May 28, 2021 to common stockholders of record as of May 17, 2021.

First Quarter 2021 Financial Summary
For the three months ended March 31, 2021, B. Riley Financial reported net income available to common shareholders of $252.9 million, or $8.81 per diluted share.

				Three Months Ended
				March 31,
	(Dollars in thousands, except for share data)				2021				2020
	Net income (loss) available to common shareholders			$	252,907			$	(99,720)
	Basic income (loss) per common share			$	9.38			$	(3.83)
	Diluted income (loss) per common share			$	8.81			$	(3.83)

Total quarterly revenues of $600.2 million and total adjusted EBITDA ⁽¹⁾ of $385.5 million represented a significant increase versus the prior-year quarter.

				Three Months Ended
				March 31,
	(Dollars in thousands)				2021				2020
	Operating Revenues (2)			$	333,217			$	182,236
	Investment Gains (Loss)(4)				266,942				(182,442)
	Total Revenues			$	600,159			$	(206)
	Operating Adjusted EBITDA (3)			$	122,717			$	70,908
	Investment Adjusted EBITDA (5)				262,764				(166,972)
	Total Adjusted EBITDA (1)			$	385,481			$	(96,064)

First quarter operating revenues ⁽²⁾ of $333.2 million represented an 83% increase from $182.2 million for the prior-year period. Operating adjusted EBITDA ⁽³⁾ increased by 73% to $122.7 million from $70.9 million for the prior-year period.

Operating results were enhanced by significant investment gains ⁽⁴⁾ of $266.9 million for the first quarter. Investment gains are primarily unrealized mark-to-market valuations on strategic investments held by the Company. These investments comprise certain private and public securities and loans which are often enhanced through utilization of the Company's strategic advisory, operational and financial services.

As of March 31, 2021, cash and investments ⁽⁶⁾ totaled approximately $1.9 billion including cash and cash equivalents of $237.6 million. Total cash and investments, ⁽⁶⁾ net of debt, was $653.8 million at quarter-end.

Additional Metrics and Supplemental Financial Data
Additional metrics related to operating results and investments are presented to provide investors with greater visibility into the Company's performance and overall results of operations. Further details related to these metrics can be found in B. Riley Financial's First Quarter 2021 Financial Supplement located on the Company's investor relations website.

First Quarter 2021 Segment Summary

		Operating Revenues(2)						Investment Gains (Loss) (4)						Total Segment Revenue
		Three Months Ended March 31,						Three Months Ended March 31,						Three Months Ended March 31,
	(Dollars in thousands)	2021			2020			2021			2020			2021			2020
	Capital Markets		207,899			95,451			264,503			(182,015)			472,402			(86,564)
	Wealth Management		65,542			18,887			2,356			(427)			67,898			18,460
	Auction and Liquidation		13,450			20,661			-			-			13,450			20,661
	Financial Consulting		21,409			20,714			-			-			21,409			20,714
	Principal Investments		20,529			22,722			-			-			20,529			22,722
	Brands		4,388			3,801			83			-			4,471			3,801
		Segment Operating Income (Loss)(7)						Investment Income (Loss) (5)						Total Segment Income (Loss)
		Three Months Ended March 31,						Three Months Ended March 31,						Three Months Ended March 31,
	(Dollars in thousands)	2021			2020			2021			2020			2021			2020
	Capital Markets		105,983			42,611			260,325			(166,545)			366,308			(123,934)
	Wealth Management		1,671			856			2,356			(427)			4,027			429
	Auction and Liquidation		907			4,289			-			-			907			4,289
	Financial Consulting		3,322			4,918			-			-			3,322			4,918
	Principal Investments		7,531			8,504			-			-			7,531			8,504
	Brands		2,998			(1,817)			83			-			3,081			(1,817)

For the first quarter of 2021:

• Excluding investment gains, Capital Markets operating revenues increased 118% to $207.9 million from $95.5 million from the prior-year period. Segment operating income ⁽⁷⁾ totaled $106.0 million. Investment banking experienced an exceptionally strong quarter driven by a number of large transactions.
• Wealth Management revenues of $67.9 million reflected contributions from the acquisition of National Holdings completed on February 25, 2021. Combined client assets under management totaled approximately $31 billion as of March 31, 2021.
• Auction and Liquidation segment results included revenues of $13.5 million earned from retail store closing projects completed during the quarter. Results for this segment vary from quarter-to-quarter and year-to-year due to the episodic impact of large retail liquidation engagements.
• Financial Consulting revenues increased to $21.4 million compared to revenues of $20.7 million for the prior-year period. Segment income was $3.3 million. Results were primarily driven by bankruptcy restructuring and appraisal engagements.
• Principal Investments companies, magicJack and United Online, contributed revenues of $20.5 million and segment income of $7.5 million. magicJack and United Online continued to perform above expectations, contributing recurring cash flow to the Company.
• Brands generated revenues of $4.5 million and segment income of $3.1 million related to the licensing of brand trademarks.

Segment Reclassification
The Company has realigned its segment reporting structure as a result of the National acquisition. Under the new structure, results for wealth management are now reported as a standalone segment. Wealth management was previously reported in the Capital Markets segment. In conjunction with the new reporting structure, the Company has recast its segment presentation for all periods presented.

Conference Call Details
B. Riley Financial will host a conference call to discuss its first quarter 2021 financial results at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) today, Monday May 3, 2021. Investors may access the live broadcast and archived recording via the Company's investor relations website.

Date and Time:	Monday May 3, 2021 at 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
Dial In:	1-855-327-6838 (toll-free) or 1-604-235-2082 (international)
Audio Webcast:	https://ir.brileyfin.com/events-and-presentations
Replay (expires Monday, May 10, 2021)
Dial In:	1-844-512-2921; 10013967 (pin)
Replay Link:	https://ir.brileyfin.com/events-and-presentations

About B. Riley Financial
B. Riley Financial is a diversified financial services company that provides collaborative solutions tailored to fit the capital raising and business advisory needs of its clients and partners. B. Riley operates through several subsidiaries that offer a diverse range of complementary end-to-end capabilities spanning investment banking and 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. Certain registered affiliates originate and underwrite senior secured loans for asset-rich companies. B. Riley also makes proprietary investments in companies and assets with attractive return profiles. For the latest news and developments, follow us on LinkedIn and Twitter @BRileyFinancial. For more information, visit www.brileyfin.com.

B. Riley refers to B. Riley Financial and/or one or more of its subsidiaries or affiliates. For more information about our affiliated companies, visit www.brileyfin.com/platform.

Footnotes (See "Note Regarding Use of Non-GAAP Financial Measures" for further discussion of these non-GAAP terms.)

(1)	Adjusted EBITDA includes earnings before interest, taxes, depreciation, amortization, restructuring costs, share-based payments, impairment of tradenames, and transaction related and other costs. For a definition of adjusted EBITDA and a reconciliation to GAAP financial measures, please see the Appendix hereto.
(2)	Operating revenue is defined as the sum of revenues from services and fees, interest income - loans and securities lending, and sale of goods.
(3)	Operating adjusted EBITDA is defined as adjusted EBITDA excluding trading income (losses) and fair value adjustments on loans and other investment related expenses.
(4)	Investment gains is defined as trading income and fair value adjustments on loans.
(5)	Investment adjusted EBITDA and investment gains income (loss) are defined as trading income and fair value adjustments on loans, less other investment related expenses.
(6)	Total cash and investments is defined as the sum of 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 (i) securities sold not yet purchased and (ii) other investments participation sold reported in noncontrolling interest, advances against customer contracts, loans receivable, at fair value net of loan participations sold, and other equity investments reported in prepaid and other assets.
(7)	Segment operating income is defined as segment income excluding trading income (losses) and fair value adjustments on loans and 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 (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 costs, impairment of trade names, 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, and other investment related expenses, (iv) including in the case of investment adjusted EBITDA, trading income (losses) and fair value adjustments on loans, net of other investment related expenses, and (v) including in the case of total cash and investments, net of debt, total cash, net securities and investments, and other minus total debt, 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.

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 the Company's anticipated results of operations for 2021, as well as 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 associated with the unpredictable and ongoing impact of the COVID-19 pandemic and other 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 Annual Report on Form 10-K for the year ended December 31, 2020 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 our Quarterly Report on Form 10-Q for the quarter ended March 31, 2021. 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, Inc. undertakes no duty to update this information.

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

 

B. RILEY FINANCIAL, INC.
Condensed Consolidated Balance Sheets
(Dollars in thousands, except par value)
							March 31,			December 31,
							2021			2020
								(Unaudited)
Assets
Assets:
	Cash and cash equivalents						$	237,590		$	103,602
	Restricted cash							8,532			1,235
	Due from clearing brokers							416,925			7,089
	Securities and other investments owned, at fair value							1,166,704			777,319
	Securities borrowed							1,313,635			765,457
	Accounts receivable, net							62,425			46,518
	Due from related parties							1,079			986
	Advances against customer contracts							200			200
	Loans receivable, at fair value (includes $200,118 and $295,809 from related parties at
	March 31, 2021 and December 31, 2020, respectively)							294,085			390,689
	Prepaid expenses and other assets							92,812			87,262
	Operating lease right-of-use assets							60,518			48,799
	Property and equipment, net							15,295			11,685
	Goodwill							233,807			227,046
	Other intangible assets, net							205,439			190,745
	Deferred tax assets, net							2,765			4,098
	Total assets						$	4,111,811		$	2,662,730
Liabilities and Equity
Liabilities:
	Accounts payable						$	7,487		$	2,722
	Accrued expenses and other liabilities							267,164			168,478
	Deferred revenue							68,515			68,651
	Deferred tax liabilities, net							101,270			34,248
	Due to related parties and partners							1,503			327
	Due to clearing brokers							—			13,672
	Securities sold not yet purchased							288,058			10,105
	Securities loaned							1,307,069			759,810
	Mandatorily redeemable noncontrolling interests							4,514			4,700
	Operating lease liabilities							73,630			60,778
	Notes payable							6,908			37,967
	Loan participations sold							11,230			17,316
	Term loan							69,543			74,213
	Senior notes payable, net							1,139,100			870,783
	Total liabilities							3,345,991			2,123,770
Commitments and contingencies
B. Riley Financial, Inc. stockholders' equity:
	Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 3,971 shares issued and
	outstanding as of March 31, 2021 and December 31, 2020; and liquidation preference of $99,260
	as of March 31, 2021 and December 31,2020.							—			—
	Common stock, $0.0001 par value; 100,000,000 shares authorized; 27,194,909 and 25,777,796
	issued and outstanding as of March 31, 2021 and December 31, 2020, respectively.							3			3
	Additional paid-in capital							380,543			310,326
	Retained earnings							352,910			203,080
	Accumulated other comprehensive loss							(1,459)			(823)
	Total B. Riley Financial, Inc. stockholders' equity							731,997			512,586
Noncontrolling interests								33,823			26,374
	Total equity							765,820			538,960
	Total liabilities and equity						$	4,111,811		$	2,662,730

 

B. RILEY FINANCIAL, INC.
Condensed Consolidated Statements of Income
(Unaudited)
(Dollars in thousands, except share data)
							Three Months Ended
							March 31,
							2021			2020
Revenues:
	Services and fees						$	289,469		$	159,381
	Trading income (losses) and fair value adjustments on loans							266,942			(182,442)
	Interest income - Loans and securities lending							36,920			21,851
	Sale of goods							6,828			1,004
		Total revenues						600,159			(206)
Operating expenses:
	Direct cost of services							11,322			19,952
	Cost of goods sold							5,326			769
	Selling, general and administrative expenses							191,344			87,744
	Impairment of tradenames							—			4,000
	Interest expense - Securities lending and loan participations sold							19,189			8,473
		Total operating expenses						227,181			120,938
		Operating income (loss)						372,978			(121,144)
Other income (expense):
	Interest income							49			246
	Gain (loss) from equity investments							875			(236)
	Interest expense							(19,786)			(15,654)
		Income (loss) before income taxes						354,116			(136,788)
(Provision) benefit for income taxes								(97,518)			37,539
		Net income (loss)						256,598			(99,249)
Net income (loss) attributable to noncontrolling interests								1,942			(584)
		Net income (loss) attributable to B. Riley Financial, Inc.					$	254,656		$	(98,665)
Preferred stock dividends								1,749			1,055
		Net income (loss) available to common shareholders					$	252,907		$	(99,720)
Basic income (loss) per common share							$	9.38		$	(3.83)
Diluted income (loss) per common share							$	8.81		$	(3.83)
Weighted average basic common shares outstanding								26,972,275			26,028,613
Weighted average diluted common shares outstanding								28,710,368			26,028,613

 

B. RILEY FINANCIAL, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(Dollars in thousands)
									Three Months Ended March 31,
									2021			2020
Cash flows from operating activities:
	Net income (loss)								$	256,598		$	(99,249)
	Adjustments to reconcile net income to net cash (used in) provided by operating activities:
	Depreciation and amortization									6,759			4,956
	Provision for doubtful accounts									402			724
	Share-based compensation									5,526			5,322
	Fair value adjustments, non-cash									(10,726)			17,926
	Non-cash interest and other									(4,375)			(2,827)
	Effect of foreign currency on operations									(726)			179
	(Income) loss from equity investments									(875)			236
	Dividends from equity investments									305			589
	Deferred income taxes									62,696			(4,254)
	Impairment of intangibles and gain on disposal of fixed assets									—			4,046
	Loss (gain) on extinguishment of debt									919			(1,556)
	Gain on equity investment									(3,544)			—
	Income allocated for mandatorily redeemable noncontrolling interests									130			175
	Change in operating assets and liabilities:
	Due from clearing brokers									(416,038)			12,939
	Securities and other investments owned									(235,504)			125,061
	Securities borrowed									(548,178)			140,168
	Accounts receivable and advances against customer contracts									(3,885)			15,674
	Prepaid expenses and other assets									(5,629)			(37,151)
	Accounts payable, accrued expenses and other liabilities									30,505			(22,097)
	Amounts due to/from related parties and partners									1,083			752
	Securities sold, not yet purchased									277,446			(27,522)
	Deferred revenue									(3,042)			6,589
	Securities loaned									547,259			(139,636)
	Net cash (used in) provided by operating activities									(42,894)			1,044
Cash flows from investing activities:
	Purchases of loans receivable									(75,669)			(115,328)
	Repayments of loans receivable									87,476			42,128
	Sale of loan receivable to related party									—			1,800
	Repayment of loan participations sold									(6,086)			(244)
	Acquisition of business, net of $34,924 cash acquired									(260)			—
	Purchases of property, equipment and other									(101)			(438)
	Proceeds from sale of property, equipment and intangible assets									—			1
	Purchase of equity investments									(4,698)			—
	Net cash provided by (used in) investing activities									662			(72,081)
Cash flows from financing activities:
	Repayment of asset based credit facility									—			(37,096)
	Repayment of notes payable									(37,610)			(357)
	Repayment of term loan									(4,750)			(4,810)
	Proceeds from issuance of senior notes									402,404			171,078
	Redemption of senior notes									(128,156)			(1,829)
	Payment of debt issuance costs									(7,510)			(2,724)
	Payment for contingent consideration									(75)			—
	Payment of employment taxes on vesting of restricted stock									(22)			(505)
	Common dividends paid									(95,183)			(9,609)
	Preferred dividends paid									(1,749)			(1,055)
	Repurchase of common stock									—			(24,068)
	Distribution to noncontrolling interests									(11,571)			(1,323)
	Contribution from noncontrolling interests									3,722			—
	Proceeds from issuance of common stock									64,713			—
	Proceeds from issuance of preferred stock									—			4,630
	Net cash provided by financing activities									184,213			92,332
	Increase in cash, cash equivalents and restricted cash									141,981			21,295
	Effect of foreign currency on cash, cash equivalents and restricted cash									(696)			(1,332)
	Net increase in cash, cash equivalents and restricted cash									141,285			19,963
Cash, cash equivalents and restricted cash, beginning of period										104,837			104,739
Cash, cash equivalents and restricted cash, end of period									$	246,122		$	124,702
Supplemental disclosures:
	Interest paid								$	36,725		$	21,785
	Taxes paid								$	53		$	574

 

B. RILEY FINANCIAL, INC.
Segment Financial Information
(Unaudited)
(Dollars in thousands)
						Three Months Ended
						March 31,
						2021			2020
Capital Markets segment:
	Revenues - Services and fees					$	170,979		$	73,600
	Trading income (losses) and fair value adjustments on loans						264,503			(182,015)
	Interest income - Loans and securities lending						36,920			21,851
	Total revenues						472,402			(86,564)
	Selling, general and administrative expenses						(86,140)			(28,301)
	Interest expense - Securities lending and loan participations sold						(19,189)			(8,473)
	Depreciation and amortization						(765)			(596)
	Segment income (loss)						366,308			(123,934)
Wealth Management segment:
	Revenues - Services and fees						65,542			18,887
	Trading income (losses) and fair value adjustments on loans						2,356			(427)
	Total revenues						67,898			18,460
	Selling, general and administrative expenses						(61,472)			(17,548)
	Depreciation and amortization						(2,399)			(483)
	Segment income						4,027			429
Auction and Liquidation segment:
	Revenues - Services and fees						7,358			20,661
	Revenues - Sale of goods						6,092			—
	Total revenues						13,450			20,661
	Direct cost of services						(6,580)			(14,816)
	Cost of goods sold						(4,474)			(29)
	Selling, general and administrative expenses						(1,489)			(1,526)
	Depreciation and amortization						—			(1)
	Segment income						907			4,289
Financial Consulting segment:
	Revenues - Services and fees						21,409			20,714
	Selling, general and administrative expenses						(17,989)			(15,729)
	Depreciation and amortization						(98)			(67)
	Segment income						3,322			4,918
Principal Investments - United Online and magicJack segment:
	Revenues - Services and fees						19,793			21,718
	Revenues - Sale of goods						736			1,004
	Total revenues						20,529			22,722
	Direct cost of services						(4,742)			(5,136)
	Cost of goods sold						(852)			(740)
	Selling, general and administrative expenses						(4,870)			(5,463)
	Depreciation and amortization						(2,534)			(2,879)
	Segment income						7,531			8,504
Brands segment:
	Revenues - Services and fees						4,388			3,801
	Trading income and fair value adjustments on loans						83			—
	Total revenues						4,471			3,801
	Selling, general and administrative expenses						(676)			(904)
	Depreciation and amortization						(714)			(714)
	Impairment of tradenames						—			(4,000)
	Segment income (loss)						3,081			(1,817)
Consolidated operating income (loss) from reportable segments							385,176			(107,611)
Corporate and other expenses (including (loss) gain on extinguishment of debt of
	($919) and $1,556 during the three months ended March 31, 2021 and 2020, respectively.)						(12,198)			(13,533)
Interest income							49			246
Income (loss) on equity investments							875			(236)
Interest expense							(19,786)			(15,654)
	Income (loss) before income taxes						354,116			(136,788)
(Provision) benefit for income taxes							(97,518)			37,539
	Net income (loss)						256,598			(99,249)
Net income (loss) attributable to noncontrolling interests							1,942			(584)
	Net income (loss) attributable to B. Riley Financial, Inc.						254,656			(98,665)
Preferred stock dividends							1,749			1,055
	Net income (loss) available to common shareholders					$	252,907		$	(99,720)

 

B. RILEY FINANCIAL, INC.
Adjusted EBITDA and Operating Adjusted EBITDA Reconciliation
(Unaudited)
(Dollars in thousands)
							Three Months Ended March 31,
							2021			2020
Net income (loss) attributable to B. Riley Financial, Inc.							$	254,656		$	(98,665)
Adjustments:
	Provision (benefit) for income taxes							97,518			(37,539)
	Interest expense							19,786			15,654
	Interest income							(49)			(246)
	Share based payments							5,526			5,322
	Depreciation and amortization							6,759			4,956
	Impairment of tradenames							—			4,000
	Transactions related costs and other							1,285			10,454
	Total EBITDA adjustments							130,825			2,601
	Adjusted EBITDA						$	385,481		$	(96,064)
Operating EBITDA Adjustments:
	Trading (income) losses and fair value adjustments on loans							(266,942)			182,442
	Other investment related expenses							4,178			(15,470)
	Total Operating EBITDA Adjustments							(262,764)			166,972
Operating Adjusted EBITDA							$	122,717		$	70,908

 

B. RILEY FINANCIAL, INC.
Adjusted Net Income Reconciliation
(Unaudited)
(Dollars in thousands, except share data)
							Three Months Ended March 31,
							2021			2020
Net income (loss) attributable to B. Riley Financial, Inc.							$	254,656		$	(98,665)
Adjustments:
	Share based payments							5,526			5,322
	Amortization of intangible assets							5,886			4,024
	Impairment of tradenames							—			4,000
	Transactions related costs and other							1,285			10,454
	Income tax effect of adjusting entries							(3,516)			(6,559)
Adjusted net income (loss) attributable to B. Riley Financial, Inc.							$	263,837		$	(81,424)
Adjusted income per common share:
	Adjusted basic income (loss) per share						$	9.78		$	(3.13)
	Adjusted diluted income (loss) per share						$	9.19		$	(3.13)
Shares used to calculate adjusted basic net income per share								26,972,275			26,028,613
Shares used to calculate adjusted diluted net income per share								28,710,368			26,028,613

 

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SOURCE B. Riley Financial