B. Riley Financial Reports Fourth Quarter and Full Year 2021 Results

Rhea-AI Summary

B. Riley Financial (RILY) reported robust fourth quarter and full year 2021 results, highlighting a net income of $62.2 million ($2.08 diluted EPS) for Q4 and $437.6 million ($15.09 diluted EPS) for the year. Total revenues surged 3% in Q4 to $422.1 million and 93% for the year to $1.7 billion. Wealth management revenues soared to $382 million, driven by the acquisition of National Holdings. The company declared a $1.00 quarterly dividend, totaling $10.00 for FY 2021, and approved a $50 million share repurchase program, reflecting strong cash flow and a solid balance sheet.

Positive

• Net income for 2021 increased to $437.6 million, up from $200.4 million in 2020.
• Total revenues for 2021 were $1.7 billion, a 93% increase compared to 2020's $902.7 million.
• Wealth management revenues reached $382 million, significantly higher than the previous year's $73 million, thanks to the acquisition of National Holdings.
• Declared $10.00 in common dividends for FY 2021, showcasing strong cash flow.
• New share repurchase program approved for up to $50 million, indicating confidence in the company's future.

Negative

• Fourth quarter net income declined from $170.1 million in Q4 2020 to $62.2 million.
• Operating revenues for Q4 decreased by 24% in the Capital Markets segment year-over-year.
• Adjusted EBITDA dropped significantly from $260.5 million in Q4 2020 to $138.0 million in Q4 2021.

LOS ANGELES, Feb. 23, 2022 /PRNewswire/ -- B. Riley Financial, Inc. (NASDAQ: RILY), a diversified financial services company, today announced results for the three- and twelve-month period ended December 31, 2021.

Fourth Quarter 2021 Financial Highlights

• Net income of $62.2 million, $2.08 diluted EPS
• Total revenues of $422.1 million
• Total adjusted EBITDA ⁽¹⁾ of $138.0 million
• Operating revenues ⁽²⁾ of $353.3 million
• Operating adjusted EBITDA ⁽³⁾ of $106.1 million

Full Year 2021 Financial Highlights

• Net income of $437.6 million, $15.09 diluted EPS
• Total revenues of $1,740.6 million
• Total adjusted EBITDA ⁽¹⁾ of $762.5 million
• Operating revenues ⁽²⁾ of $1,353.9 million
• Operating adjusted EBITDA ⁽³⁾ of $422.0 million
• Strengthened wealth management, asset management and M&A capabilities
• Significantly lowered cost of debt
• Declared dividends of $10.00 per common share for FY 2021

Bryant Riley, Chairman and Co-Chief Executive Officer of B. Riley Financial, said: "We are pleased to report another strong quarter and full year of results thanks to our talented and ambitious team.  By adding to our wealth management, asset management and M&A businesses through acquisition and hiring exceptional talent in all areas, we continue to provide unique capabilities to our clients and partners. In 2021, we strengthened our balance sheet and reduced our cost of capital, allowing us the flexibility to invest across the platform and return capital to shareholders with share buybacks and dividend payments.  Over the past four quarters, B. Riley has declared $10.00 in common dividends thanks to the strong cash flow of our episodic and recurring businesses."

Tom Kelleher, Co-Chief Executive Officer of B. Riley Financial, added: "Operating revenue for the full year 2021 increased 70% to $1.4 billion compared to $799 million for the full year 2020.  Our efforts to cross-sell throughout the platform is gaining traction and creating opportunities. Furthermore, we have continued to expand our platform as we recently welcomed the addition of FocalPoint Securities, which will enhance our firm's investment banking efforts, with a specific emphasis on M&A advisory and financial sponsors.  We also completed the purchase of a portfolio of loan receivables from Badcock Home Furniture which we believe will add an attractive and consistent income stream."

Mr. Riley continued: "Over the past couple of months capital markets have slowed significantly.  While we have been a large beneficiary of these markets, we also recognize the strength and differentiation of our business model if they are to continue to soften.  When we took the business public in 2014 our business was highly correlated to two cyclical businesses, brokerage and liquidation.  Since that time, we have taken aggressive steps to diversify the cash flow profile of our company by adding several non-correlated companies such as our communications, brands and financial consulting businesses in addition to our recent accounts receivables portfolio. In addition, the credit and current income portion of our investment portfolio provides approximately $85 million of interest and dividend income.  Combined, our non-cyclical businesses and assets provide enough cash flow to cover the vast majority of our annual operating expenses, interest and dividend.  Clearly, we expect strong profits from B. Riley Securities this year and every year. As a reminder, that business has generated a majority of our capital markets operating segment income in each of the last three years.  However, we believe our diversification is a competitive advantage and will enable us to invest when others may need to contract."

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 March 23 to common stockholders of record as of March 9. Including this $1.00 regular dividend, the Company will have paid $10.00 in common dividends to shareholders related to the FY 2021 period.

Share Repurchases

Under the prior share repurchase plan, effective as of October 27, 2020, the Company repurchased approximately 495,000 of its common shares for an aggregate amount of approximately $12.6 million through December 31, 2021. During the fourth quarter of 2021, B. Riley's Board of Directors approved a new annual share repurchase program for up to $50 million.

Financial Summary

			Three Months Ended								Twelve Months Ended
			December 31,								December 31,
	(Dollars in thousands, except for share data)			2021				2020				2021				2020
	Net income available to common shareholders		$	62,182			$	170,114			$	437,597			$	200,438
	Basic income per common share		$	2.26			$	6.72			$	15.99			$	7.83
	Diluted income per common share		$	2.08			$	6.55			$	15.09			$	7.56

For the fourth quarter, net income available to common shareholders was $62.2 million, or $2.08 diluted earnings per share (EPS). For the full year, net income available to common shareholders was $437.6 million, or $15.09 diluted EPS.

			Three Months Ended								Twelve Months Ended
			December 31,								December 31,
	(Dollars in thousands)			2021				2020				2021				2020
	Operating Revenues (2)		$	353,252			$	270,046			$	1,353,885			$	798,703
	Investment Gains (4)			68,858				140,160				386,676				104,018
	Total Revenues		$	422,110			$	410,206			$	1,740,561			$	902,721
	Operating Adjusted EBITDA (3)		$	106,097			$	126,787			$	422,029			$	311,673
	Investment Adjusted EBITDA (5)			31,928				133,699				340,465				95,145
	Total Adjusted EBITDA (1)		$	138,025			$	260,486			$	762,494			$	406,818

 

For the three months ended December 31, 2021:

• Total revenues increased 3% to $422.1 million from $410.2 million for the prior year period.
• Total adjusted EBITDA ⁽¹⁾ of $138.0 million compared to $260.5 million for the prior year period.
• Operating revenues ⁽²⁾ increased 31% to $353.3 million from $270.0 million for the prior year period.
• Operating adjusted EBITDA ⁽³⁾ of $106.1 million compared to $126.8 million for the prior year period.
• Quarterly investment gains ⁽⁴⁾ were $68.9 million which reflect certain strategic investments held by the Company.

For the full year:

• Total revenues increased 93% to $1.7 billion from $902.7 million for the prior year period.
• Total adjusted EBITDA ⁽¹⁾ increased 87% to $762.5 million from $406.8 million for the prior year period.
• Operating revenues ⁽²⁾ increased 70% to $1.4 billion from $798.7 million for the prior year period.
• Operating adjusted EBITDA ⁽³⁾ increased 35% to $422.0 million from $311.7 million for the prior year period.

As of December 31, 2021, cash and investments ⁽⁶⁾ totaled approximately $2.6 billion including cash and cash equivalents of $278.9 million. Total cash and investments, ⁽⁶⁾ net of debt, was approximately $606 million.

Segment Financial Summary and Highlights

		Operating Revenues(2)						Investment Gains (4)						Total Segment Revenue
		Three Months Ended December 31,						Three Months Ended December 31,						Three Months Ended December 31,
	(Dollars in thousands)	2021			2020			2021			2020			2021			2020
	Capital Markets		$      176,935			$       180,214			$        67,718			$       139,750			$      244,653			$       319,964
	Wealth Management		103,803			20,851			1,140			410			104,943			21,261
	Auction and Liquidation		5,718			15,667			-			-			5,718			15,667
	Financial Consulting		27,877			26,480			-			-			27,877			26,480
	Principal Investments		33,872			21,383			-			-			33,872			21,383
	Brands		5,047			5,451			-			-			5,047			5,451
		Segment Operating Income (Loss)(7)						Investment Income (5)						Total Segment Income (Loss)
		Three Months Ended December 31,						Three Months Ended December 31,						Three Months Ended December 31,
	(Dollars in thousands)	2021			2020			2021			2020			2021			2020
	Capital Markets		$        87,203			$       101,253			$        30,788			$       133,289			$      117,991			$       234,542
	Wealth Management		4,916			1,250			1,140			410			6,056			1,660
	Auction and Liquidation		(2,706)			7,460			-			-			(2,706)			7,460
	Financial Consulting		6,628			6,873			-			-			6,628			6,873
	Principal Investments		5,846			7,300			-			-			5,846			7,300
	Brands		3,605			4,054			-			-			3,605			4,054

For the three months ended December 31, 2021:
Capital Markets segment revenues decreased 24% to $244.7 million for the fourth quarter. Excluding investment gains ⁽⁴⁾ of $67.7 million, segment operating revenues ⁽²⁾ decreased 2% year-over-year to $176.9 million, and segment operating income ⁽⁷⁾ decreased 14% to $87.2 million for the quarter. Performance was primarily driven by investment banking and fees generated from several significant debt and equity capital markets transactions completed during the quarter.

Wealth Management segment revenues and segment income increased to $104.9 million and $6.1 million, respectively, reflecting the addition of National Holdings which was acquired in February 2021. Combined wealth management assets under management were over $32 billion as of December 31, 2021.

Auction and Liquidation segment revenues totaled $5.7 million. 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 segment revenues increased to $27.9 million from $26.5 million in prior year period. Segment income decreased to $6.6 million, down from $6.9 million for the prior year period.

Principal Investments segment companies, magicJack, United Online, and Marconi Wireless, acquired during the quarter, continued to perform above expectations, contributing recurring cash flow to the Company.

Brands generated quarterly segment revenues of $5.0 million related to the licensing of brand trademarks. 

		Operating Revenues(2)						Investment Gains (4)						Total Segment Revenue
		Twelve Months Ended December 31,						Twelve Months Ended December 31,						Twelve Months Ended December 31,
	(Dollars in thousands)	2021			2020			2021			2020			2021			2020
	Capital Markets		$      698,040			$       442,376			$      379,053			$       103,214			$   1,077,093			$       545,590
	Wealth Management		374,361			72,345			7,623			804			381,984			73,149
	Auction and Liquidation		73,517			88,764			-			-			73,517			88,764
	Financial Consulting		94,312			91,622			-			-			94,312			91,622
	Principal Investments		93,347			87,138			-			-			93,347			87,138
	Brands		20,308			16,458			-			-			20,308			16,458
		Segment Operating Income (Loss)(7)						Investment Income (5)						Total Segment Income (Loss)
		Twelve Months Ended December 31,						Twelve Months Ended December 31,						Twelve Months Ended December 31,
	(Dollars in thousands)	2021			2020			2021			2020			2021			2020
	Capital Markets		$      344,029			$       206,533			$      332,842			$         94,341			$      676,871			$       300,874
	Wealth Management		8,311			2,097			7,623			804			15,934			2,901
	Auction and Liquidation		8,054			25,769			-			-			8,054			25,769
	Financial Consulting		16,894			22,543			-			-			16,894			22,543
	Principal Investments		27,158			33,360			-			-			27,158			33,360
	Brands		14,385			(1,789)			-			-			14,385			(1,789)

For the full year:
Capital Markets operating revenues ⁽²⁾ increased to $698.0 million with segment operating income ⁽⁷⁾ of $344.0 million, compared to operating revenues ⁽²⁾ of $442.4 million and segment operating income ⁽⁷⁾ of $206.5 million in the prior year period.

Wealth Management annual revenues increased to $382.0 million from $73.1 million in prior year period. Segment income increased to $15.9 million, up from $2.9 million for the prior year period. The increases are primarily from the addition of National Holdings.

Auction and Liquidation generated annual revenues of $73.5 million and segment income of $8.1 million related to retail liquidation and store closing projects completed during 2021.

Financial Consulting annual revenues increased to $94.3 million from $91.6 million in prior year period. Segment income decreased to $16.9 million, down from $22.5 million for the prior year period.

Principal Investments companies continued to outperform initial investment estimates and provide steady cash flow for the B. Riley platform. For the full year, magicJack, United Online and Marconi Wireless contributed revenues of $93.3 million and segment income of $27.2 million.

Brands contributed licensing revenue of $20.3 million in 2021.

Supplemental Financial Data
Additional metrics related to operating results and investments can be found in the Fourth Quarter and Full Year 2021 Financial Supplement on B. Riley's investor relations website.

Conference Call Details
Management will host an investor call to discuss its fourth quarter and full year results today, Wednesday, February 23, 2022 at 4:30 p.m. Eastern time (1:30 p.m. Pacific time). Investors may access the live broadcast and archived recording via the Company's investor relations website at ir.brileyfin.com.

Date and Time:	Wednesday,8 February 23, 2022 at 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
Dial In:	1-877-300-8521 (toll-free) or 1-412-317-6026 (international)
Audio Webcast:	https://ir.brileyfin.com/events-and-presentations
Replay (expires Wednesday, March 2, 2022)
Dial In:	1-844-512-2921; 10164067 (pin)
Replay Link:	https://ir.brileyfin.com/events-and-presentations

About B. Riley Financial
B. Riley Financial 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. 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.)

(1)	Adjusted EBITDA includes earnings before interest, taxes, depreciation, amortization, restructuring costs, share-based payments, gain on extinguishment of loans, 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 (loss) is defined as trading income and fair value adjustments on loans.
(5)	Investment adjusted EBITDA and investment income (loss) are defined as trading income (losses) 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) noncontrolling interest related to investments, advances against customer contracts, loans receivable, at fair value net of loan participations sold, and other investments reported in prepaid and other assets.
(7)	Segment operating income (loss) is defined as segment income (loss) 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, 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, 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, management compensation, 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 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 and in our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2021, June 30, 2021, and September 30, 2021 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 Annual Report on Form 10-K for the year ended December 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 / Scott Cianciulli
ir@brileyfin.com	press@brileyfin.com
(212) 409-2424	(212) 739-6753

 

B. RILEY FINANCIAL, INC.
Consolidated Balance Sheets
(Dollars in thousands, except par value)
							December 31,			December 31,
							2021			2020
							(Unaudited)
Assets
Assets:
	Cash and cash equivalents						$	278,933		$	103,602
	Restricted cash							927			1,235
	Due from clearing brokers							29,657			7,089
	Securities and other investments owned, at fair value							1,532,095			777,319
	Securities borrowed							2,090,966			765,457
	Accounts receivable, net							49,673			40,806
	Due from related parties							2,074			986
	Loans receivable, at fair value (includes $167,744 and $295,809 from related parties as of December 31, 2021 and 2020, respectively)							873,186			390,689
	Prepaid expenses and other assets							463,502			93,174
	Operating lease right-of-use assets							56,969			48,799
	Property and equipment, net							12,870			11,685
	Goodwill							250,568			227,046
	Other intangible assets, net							207,651			190,745
	Deferred tax assets, net							2,848			4,098
	Total assets						$	5,851,919		$	2,662,730
Liabilities and Equity
Liabilities:
	Accounts payable						$	6,326		$	2,722
	Accrued expenses and other liabilities							343,750			173,178
	Deferred revenue							69,507			68,651
	Deferred tax liabilities, net							93,055			34,248
	Due to related parties and partners							—			327
	Due to clearing brokers							69,398			13,672
	Securities sold not yet purchased							28,623			10,105
	Securities loaned							2,088,685			759,810
	Operating lease liabilities							69,072			60,778
	Notes payable							357			37,967
	Loan participations sold							—			17,316
	Revolving credit facility							80,000			—
	Term loans							346,385			74,213
	Senior notes payable, net							1,606,560			870,783
	Total liabilities							4,801,718			2,123,770
Commitments and contingencies
Redeemable noncontrolling interests in equity of subsidiaries								345,000			—
B. Riley Financial, Inc. stockholders' equity:
	Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 4,512 and 3,971 shares							—			—
	issued and outstanding as of December 31, 2021 and 2020, respectively; liquidation
	preference of $112,790 and $99,260 as of December 31, 2021 and 2020, respectively.
	Common stock, $0.0001 par value; 100,000,000 shares authorized;27,591,028 and 25,777,796 shares							3			3
	issued and outstanding as of December 31, 2021 and 2020, respectively.
	Additional paid-in capital							413,486			310,326
	Retained earnings							248,862			203,080
	Accumulated other comprehensive loss							(1,080)			(823)
	Total B. Riley Financial, Inc. stockholders' equity							661,271			512,586
Noncontrolling interests								43,930			26,374
	Total equity							705,201			538,960
	Total liabilities and equity						$	5,851,919		$	2,662,730

 

B. RILEY FINANCIAL, INC.
Consolidated Statements of Income
(Dollars in thousands, except share data)
							Three Months Ended						Twelve Months Ended
							December 31,						December 31,
							2021			2020			2021			2020
							(Unaudited)			(Unaudited)			(Unaudited)
Revenues:
	Services and fees						$	315,848		$	237,270		$	1,172,957		$	667,069
	Trading income and fair value adjustments on loans							68,858			140,160			386,676			104,018
	Interest income - Loans and securities lending							33,443			30,116			122,723			102,499
	Sale of goods							3,961			2,660			58,205			29,135
		Total revenues						422,110			410,206			1,740,561			902,721
Operating expenses:
	Direct cost of services							12,955			9,250			54,390			60,451
	Cost of goods sold							5,559			1,018			26,953			12,460
	Selling, general and administrative expenses							270,712			137,088			906,196			428,537
	Restructuring charge							—			—			—			1,557
	Impairment of tradenames							—			—			—			12,500
	Interest expense - Securities lending and loan participations sold							12,362			11,782			52,631			42,451
		Total operating expenses						301,588			159,138			1,040,170			557,956
			Operating income					120,522			251,068			700,391			344,765
Other income (expense):
	Interest income							54			27			229			564
	(Loss) gain on extinguishment of loans and other							(4,471)			—			3,796			—
	Income (loss) from equity investments							1,629			(478)			2,801			(623)
	Interest expense							(26,441)			(16,712)			(92,455)			(65,249)
		Income before income taxes						91,293			233,905			614,762			279,457
Provision for income taxes								(23,847)			(62,060)			(163,960)			(75,440)
		Net income						67,446			171,845			450,802			204,017
Net income (loss) attributable to noncontrolling interests								3,274			251			5,748			(1,131)
		Net income attributable to B. Riley Financial, Inc.						64,172			171,594			445,054			205,148
Preferred stock dividends								1,990			1,480			7,457			4,710
		Net income available to common shareholders					$	62,182		$	170,114		$	437,597		$	200,438
Basic income per common share							$	2.26		$	6.72		$	15.99		$	7.83
Diluted income per common share							$	2.08		$	6.55		$	15.09		$	7.56
Weighted average basic common shares outstanding								27,569,188			25,331,918			27,366,292			25,607,278
Weighted average diluted common shares outstanding								29,840,704			25,966,501			29,005,602			26,508,397

 

B. RILEY FINANCIAL, INC.
Segment Financial Information
(Unaudited)
(Dollars in thousands)
						Three Months Ended						Twelve Months Ended
						December 31,						December 31,
						2021			2020			2021			2020
Capital Markets segment:
	Revenues - Services and fees					$	143,492		$	150,098		$	575,317		$	339,877
	Trading income and fair value adjustments on loans						67,718			139,750			379,053			103,214
	Interest income - Loans and securities lending						33,443			30,116			122,723			102,499
	Total revenues						244,653			319,964			1,077,093			545,590
	Selling, general and administrative expenses						(113,690)			(73,118)			(345,455)			(198,962)
	Restructuring charge						—			—			—			(917)
	Interest expense - Securities lending and loan participations sold						(12,362)			(11,782)			(52,631)			(42,451)
	Depreciation and amortization						(610)			(522)			(2,136)			(2,386)
		Segment income					117,991			234,542			676,871			300,874
Wealth Management segment:
	Revenues - Services and fees						103,803			20,851			374,361			72,345
	Trading income and fair value adjustments on loans						1,140			410			7,623			804
	Total revenues						104,943			21,261			381,984			73,149
	Selling, general and administrative expenses						(96,799)			(19,142)			(357,130)			(68,368)
	Depreciation and amortization						(2,088)			(459)			(8,920)			(1,880)
		Segment income					6,056			1,660			15,934			2,901
Auction and Liquidation segment:
	Revenues - Services and fees						4,532			13,761			20,169			63,101
	Revenues - Sale of goods						1,186			1,906			53,348			25,663
	Total revenues						5,718			15,667			73,517			88,764
	Direct cost of services						(2,977)			(4,324)			(30,719)			(40,730)
	Cost of goods sold						(1,097)			(406)			(20,675)			(9,766)
	Selling, general and administrative expenses						(4,350)			(3,477)			(14,069)			(12,357)
	Restructuring charge						—			—			—			(140)
	Depreciation and amortization						—			—			—			(2)
		Segment (loss) income					(2,706)			7,460			8,054			25,769
Financial Consulting segment:
	Revenues - Services and fees						27,877			26,480			94,312			91,622
	Selling, general and administrative expenses						(21,166)			(19,476)			(77,062)			(68,232)
	Restructuring charge						—			—			—			(500)
	Depreciation and amortization						(83)			(131)			(356)			(347)
		Segment income					6,628			6,873			16,894			22,543
Principal Investments - Communications segment:
	Revenues - Services and fees						31,096			20,629			88,490			83,666
	Revenues - Sale of goods						2,776			754			4,857			3,472
	Total revenues						33,872			21,383			93,347			87,138
	Direct cost of services						(9,978)			(4,926)			(23,671)			(19,721)
	Cost of goods sold						(4,462)			(612)			(6,278)			(2,694)
	Selling, general and administrative expenses						(10,397)			(6,000)			(25,493)			(20,352)
	Depreciation and amortization						(3,189)			(2,545)			(10,747)			(11,011)
		Segment income					5,846			7,300			27,158			33,360
Brands segment:
	Revenues - Services and fees						5,047			5,451			20,308			16,458
	Selling, general and administrative expenses						(840)			(682)			(3,178)			(2,889)
	Depreciation and amortization						(602)			(715)			(2,745)			(2,858)
	Impairment of tradenames						—			—			—			(12,500)
		Segment income (loss)					3,605			4,054			14,385			(1,789)
Consolidated operating income from reportable segments							137,420			261,889			759,296			383,658
Corporate and other expenses							(16,898)			(10,821)			(58,905)			(38,893)
Interest income							54			27			229			564
(Loss) gain on extinguishment of loans and other							(4,471)			—			3,796			—
Income (loss) on equity investments							1,629			(478)			2,801			(623)
Interest expense							(26,441)			(16,712)			(92,455)			(65,249)
	Income before income taxes						91,293			233,905			614,762			279,457
Provision for income taxes							(23,847)			(62,060)			(163,960)			(75,440)
	Net income						67,446			171,845			450,802			204,017
Net income (loss) income attributable to noncontrolling interests							3,274			251			5,748			(1,131)
	Net income attributable to B. Riley Financial, Inc.						64,172			171,594			445,054			205,148
Preferred stock dividends							1,990			1,480			7,457			4,710
	Net income available to common shareholders					$	62,182		$	170,114		$	437,597		$	200,438

 

B. RILEY FINANCIAL, INC.
Adjusted EBITDA and Operating Adjusted EBITDA Reconciliation
(Unaudited)
(Dollars in thousands)
							Three Months Ended						Twelve Months Ended
							December 31,						December 31,
							2021			2020			2021			2020
Net income attributable to B. Riley Financial, Inc.							$	64,172		$	171,594		$	445,054		$	205,148
Adjustments:
	Provision for income taxes							23,847			62,060			163,960			75,440
	Interest expense							26,441			16,712			92,455			65,249
	Interest income							(54)			(27)			(229)			(564)
	Share based payments							12,503			4,321			36,011			18,588
	Depreciation and amortization							6,805			4,604			25,871			19,369
	Restructuring costs							—			—			—			1,557
	Gain on extinguishment of loans							—			—			(6,509)			—
	Impairment of tradenames							—			—			—			12,500
	Transactions related costs and other							4,311			1,222			5,881			9,531
		Total EBITDA adjustments						73,853			88,892			317,440			201,670
			Adjusted EBITDA				$	138,025		$	260,486		$	762,494		$	406,818
Operating EBITDA Adjustments:
	Trading income and fair value adjustments on loans							(68,858)			(140,160)			(386,676)			(104,018)
	Other investment related expenses							36,930			6,461			46,211			8,873
		Total Operating EBITDA Adjustments						(31,928)			(133,699)			(340,465)			(95,145)
Operating Adjusted EBITDA							$	106,097		$	126,787		$	422,029		$	311,673

 

B. RILEY FINANCIAL, INC.
Adjusted Net Income Reconciliation
(Unaudited)
(Dollars in thousands, except share data)
							Three Months Ended						Twelve Months Ended
							December 31,						December 31,
							2021			2020			2021			2020
Net income attributable to B. Riley Financial, Inc.							$	64,172		$	171,594		$	445,054		$	205,148
Adjustments:
	Share based payments							12,503			4,321			36,011			18,588
	Amortization of intangible assets							5,830			3,769			22,006			15,736
	Restructuring costs							—			—			—			1,557
	Gain on extinguishment of loans							—			—			(6,509)			—
	Impairment of tradenames							—			—			—			12,500
	Transactions related costs and other							4,311			1,222			5,881			9,531
	Income tax effect of adjusting entries							(6,135)			(2,473)			(15,722)			(15,929)
Adjusted net income attributable to B. Riley Financial, Inc.							$	80,681		$	178,433		$	486,721		$	247,131
Adjusted income per common share:
	Adjusted basic income per share						$	2.93		$	7.04		$	17.79		$	9.65
	Adjusted diluted income per share						$	2.70		$	6.87		$	16.78		$	9.32
Shares used to calculate adjusted basic net income per share								27,569,188			25,331,918			27,366,292			25,607,278
Shares used to calculate adjusted diluted net income per share								29,840,704			25,966,501			29,005,602			26,508,397

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/b-riley-financial-reports-fourth-quarter-and-full-year-2021-results-301489023.html

SOURCE B. Riley Financial

FAQ

What were B. Riley Financial's earnings results for Q4 2021?

B. Riley Financial reported a net income of $62.2 million, translating to $2.08 diluted EPS for Q4 2021.

How did B. Riley Financial perform in 2021 overall?

For the full year 2021, B. Riley Financial achieved a net income of $437.6 million and total revenues of $1.7 billion.

What dividends were declared by B. Riley Financial for FY 2021?

B. Riley declared a total of $10.00 per common share in dividends for FY 2021.

What new plans have been announced by B. Riley Financial regarding share repurchases?

B. Riley Financial approved a new annual share repurchase program for up to $50 million.

How has B. Riley Financial's capital markets performance changed in Q4 2021?

The Capital Markets segment revenues decreased 24% year-over-year in Q4 2021.