B. Riley Financial Reports Third Quarter 2021 Results; Declares $4.00 Dividend

Rhea-AI Summary

B. Riley Financial reported strong Q3 2021 results with a net income of $48.6 million, up 3% year-over-year. Total revenues surged to $381.5 million, marking a 69% increase. The company declared a $4.00 quarterly dividend, including a $3.00 special dividend, reflecting confidence in cash flows. Operating revenue rose 87% to $363.3 million, with operating adjusted EBITDA increasing by 50% to $101.1 million. B. Riley also made progress in reducing debt expenses and expanding its investment banking and wealth management divisions.

Positive

• Total revenues increased 69% year-over-year to $381.5 million.
• Net income rose by 3% to $48.6 million.
• Declared a total quarterly dividend of $4.00 per share, including a special $3.00 dividend.
• Operating revenues increased 87% to $363.3 million.
• Operating adjusted EBITDA rose 50% to $101.1 million
• Cash and investments totaled approximately $2.3 billion.
• Acquired 272 Capital, enhancing asset management capabilities.

Negative

• Diluted earnings per share (EPS) decreased from $1.86 to $1.69 year-over-year.
• Investment gains fell to $18.2 million compared to $31.8 million in Q3 2020.

10/28/2021 - 04:01 PM

LOS ANGELES, Oct. 28, 2021 /PRNewswire/ -- B. Riley Financial, Inc. (NASDAQ: RILY), a diversified financial services company, today announced results for the three- and nine-month period ended September 30, 2021.

Third Quarter 2021 Highlights

• Net income of $48.6 million, up 3% year-over-year
• Total revenues of $381.5 million, up 69% year-over-year
• Total adjusted EBITDA ⁽¹⁾ of $114.1 million, up 21% year-over-year
• Operating revenues ⁽²⁾ of $363.3 million, up 87% year-over-year
• Operating adjusted EBITDA ⁽³⁾ of $101.1 million, up 50% year-over-year

Bryant Riley, Chairman and Co-Chief Executive Officer of B. Riley Financial, said: "We have never been more confident in the power of our combined platform and the opportunities we see ahead. In line with our stated commitment to return capital to our shareholders, we have increased our regular quarterly dividend to $1.00 and declared a special dividend of $3.00 for a total third quarter dividend of $4.00 per common share. Upon payment of our third quarter dividend, we will have returned a total of $9.00 per share, or approximately $247 million, in common stock dividends to shareholders for the first three quarters. The increase in our regular dividend reflects our increasing confidence in our recurring cash flows, as well as the continued growth in our episodic businesses. Our balance sheet continues to be very strong, and our capital base has continued to increase, reflecting the growing cash flows and strong fundamentals of our business. We acknowledge that our diversified business can be difficult to analyze and believe a recurring dividend is an important measure for our shareholders. Our goal is to continue to utilize our cash flows to enhance our business, make accretive acquisitions, and return capital to our shareholders. Over the last year, we have made meaningful progress in reducing our debt expense by redeeming two of our higher rate corporate bonds and issuing debt at a rate that is over 200 basis points lower. We will continue to seek opportunities to improve our capital structure in the coming quarters."

Tom Kelleher, Co-Chief Executive Officer of B. Riley Financial, added: "Over the last year, B. Riley Securities has established itself as a preferred investment banking partner for small- and mid-cap companies. Our investment banking division drove our strong quarterly performance, supported by contributions from our newly expanded wealth management division, cash flow generated by our principal investment companies, and growth in our brands. The momentum of our combined platform continues to benefit each of our distinct businesses. Our strengthened execution capabilities have enabled us to uncover additional new business opportunities while attracting talented professionals to our platform. During the quarter, we acquired 272 Capital in line with our stated intent to build out asset management and named a senior professional to lead the expansion of our fixed income division. We also added several quality financial advisors to our roster as we work to combine our legacy wealth management business with National Holdings. We are continuing to recruit across our business lines and believe our ability to attract talent of this caliber speaks to the value of our diversified platform."

Declaration of Common Dividend
B. Riley has declared a total quarterly cash dividend of $4.00 per common share which is payable on or about November 23, 2021 to common stockholders of record as of November 9, 2021. The total dividend payment reflects an increased regular quarterly dividend of $1.00 from the previous regular quarterly dividend of $0.50, in addition to a $3.00 special one-time dividend.

Bond Redemption and Share Repurchases
In September, the Company redeemed its 7.375% Senior Notes due 2023 in full for an aggregate redemption price of approximately $140.5 million, including accrued interest.

Under the current 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 September 30, 2021. B. Riley's Board of Directors has approved a new annual share repurchase program for up to $50 million.

Financial Summary

			Three Months Ended						Nine Months Ended
			September 30,						September 30,
		(Dollars in thousands, except for share data)	2021			2020			2021			2020
		Net income available to common shareholders	$	48,621		$	47,291		$	375,415		$	30,324
		Basic income per common share	$	1.76		$	1.86		$	13.75		$	1.18
		Diluted income per common share	$	1.69		$	1.75		$	13.07		$	1.14

For the third quarter, net income available to common shareholders was $48.6 million, or $1.69 diluted earnings per share (EPS). For the first nine months of 2021, net income available to common shareholders was $375.4 million, or $13.07 diluted EPS.

			Three Months Ended						Nine Months Ended
			September 30,						September 30,
		(Dollars in thousands)	2021			2020			2021			2020
		Operating Revenues (2)	$	363,325		$	194,500		$	1,000,633		$	528,657
		Investment Gains (Loss)(4)		18,197			31,753			317,818			(36,142)
		Total Revenues	$	381,522		$	226,253		$	1,318,451		$	492,515
		Operating Adjusted EBITDA (3)	$	101,091		$	67,222		$	315,932		$	184,886
		Investment Adjusted EBITDA (5)		13,010			26,911			308,537			(38,554)
		Total Adjusted EBITDA (1)	$	114,101		$	94,133		$	624,469		$	146,332

For the three months ended September 30, 2021:

• Total revenues increased 69% to $381.5 million compared to $226.3 million for the prior year quarter.
• Total adjusted EBITDA ⁽¹⁾ increased 21% to $114.1 million compared to $94.1 million for the prior year period.
• Operating revenues ⁽²⁾ increased 87% to $363.3 million from $194.5 million for the prior year period.
• Operating adjusted EBITDA ⁽³⁾ increased 50% to $101.1 million from $67.2 million for the prior year period.
• Quarterly investment gains ⁽⁴⁾ were $18.2 million which reflect certain strategic investments held by the Company.

For the first nine months of 2021:

• Total revenues increased 168% to $1.3 billion compared to $492.5 million for the prior year period.
• Total adjusted EBITDA ⁽¹⁾ increased 327% to $624.5 million compared to $146.3 million for the prior year period.
• Operating revenues ⁽²⁾ increased 89% to $1.0 billion compared to $528.7 million for the prior year period.
• Operating adjusted EBITDA ⁽³⁾ increased 71% to $315.9 million from $184.9 million for the prior year period.

As of September 30, cash and investments ⁽⁶⁾ totaled approximately $2.3 billion including cash and cash equivalents of $378.2 million. Total cash and investments, ⁽⁶⁾ net of debt, was $593.4 million.

Segment Financial Summary and Highlights

		Operating Revenues(2)						Investment Gains (4)						Total Segment Revenue
		Three Months Ended September 30,						Three Months Ended September 30,						Three Months Ended September 30,
	(Dollars in thousands)	2021			2020			2021			2020			2021			2020
	Capital Markets		$ 161,718			$ 81,841			$ 16,935			$ 31,399			$ 178,653			$ 113,240
	Wealth Management		117,572			17,289			1,262			354			118,834			17,643
	Auction and Liquidation		37,072			44,185			-			-			37,072			44,185
	Financial Consulting		21,291			25,583			-			-			21,291			25,583
	Principal Investments		19,300			21,602			-			-			19,300			21,602
	Brands		6,372			4,000			-			-			6,372			4,000
		Segment Operating Income(7)						Investment Income (5)						Total Segment Income
		Three Months Ended September 30,						Three Months Ended September 30,						Three Months Ended September 30,
	(Dollars in thousands)	2021			2020			2021			2020			2021			2020
	Capital Markets		$   76,142			$ 33,198			$ 11,748			$ 26,557			$   87,890			$   59,755
	Wealth Management		5,322			426			1,262			354			6,584			780
	Auction and Liquidation		6,298			12,000			-			-			6,298			12,000
	Financial Consulting		2,769			7,248			-			-			2,769			7,248
	Principal Investments		6,506			8,368			-			-			6,506			8,368
	Brands		4,686			2,292			-			-			4,686			2,292

Capital Markets segment revenues increased 58% to $178.7 million for the third quarter. Excluding investment gains ⁽⁴⁾ of $16.9 million, segment operating revenues ⁽²⁾ increased 98% year-over-year to $161.7 million, and segment operating income ⁽⁷⁾ increased 129% to $76.1 million for the quarter. Strong 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 $118.8 million and $6.6 million, respectively, reflecting the addition of National Holdings which was acquired in February 2021. Combined wealth management assets under management were approximately $32 billion as of September 30, 2021.

Auction and Liquidation segment revenues totaled $37.1 million, driven by retail liquidation activity in Europe. Results for this segment vary from quarter-to-quarter and year-to-year due to the episodic impact of large retail liquidation engagements.

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

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

Conference Call Details
Management will host an investor call to discuss its third quarter results today, Thursday, October 28, 2021, 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:	Thursday October 28, 2021 at 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
Dial In:	1-855-327-6837 (toll-free) or 1-631-891-4304 (international)
Audio Webcast:	https://ir.brileyfin.com/events-and-presentations
Replay (expires Thursday, November 4, 2021)
Dial In:	1-844-512-2921; 10016591 (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 and June 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 Quarterly Report on Form 10-Q for the quarter ended September 30, 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)
				September 30,			December 31,
				2021			2020
				(Unaudited)
Assets
Assets:
	Cash and cash equivalents			$	378,205		$	103,602
	Restricted cash				927			1,235
	Due from clearing brokers				599,715			7,089
	Securities and other investments owned, at fair value				1,352,100			777,319
	Securities borrowed				1,347,656			765,457
	Accounts receivable, net				54,790			46,518
	Due from related parties				1,513			986
	Loans receivable, at fair value (includes $140,064 and $295,809from related parties at
	September 30, 2021 and December 31, 2020, respectively)				350,762			390,689
	Prepaid expenses and other assets				448,985			87,462
	Operating lease right-of-use assets				59,735			48,799
	Property and equipment, net				13,720			11,685
	Goodwill				237,961			227,046
	Other intangible assets, net				196,697			190,745
	Deferred tax assets, net				4,085			4,098
		Total assets		$	5,046,851		$	2,662,730
Liabilities and Equity
Liabilities:
	Accounts payable			$	4,028		$	2,722
	Accrued expenses and other liabilities				277,586			168,478
	Deferred revenue				68,310			68,651
	Deferred tax liabilities, net				67,023			34,248
	Due to related parties and partners				176			327
	Due to clearing brokers				—			13,672
	Securities sold not yet purchased				419,211			10,105
	Securities loaned				1,345,825			759,810
	Mandatorily redeemable noncontrolling interests				4,196			4,700
	Operating lease liabilities				72,158			60,778
	Notes payable				357			37,967
	Loan participations sold				—			17,316
	Revolving credit facility				80,000			—
	Term loans, net				252,927			74,213
	Senior notes payable, net				1,362,847			870,783
		Total liabilities			3,954,644			2,123,770
Commitments and contingencies
Redeemable noncontrolling interests in equity of subsidiaries					345,000			—
B. Riley Financial, Inc. equity:
	Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 4,485 and 3,971 shares issued and
	outstanding as of September 30, 2021 and December 31, 2020, respectively; and liquidation preference
	of $112,128 and $99,260 as of September 30, 2021 and December 31, 2020, respectively				—			—
	Common stock, $0.0001 par value; 100,000,000 shares authorized; 27,554,664 and 25,777,796
	issued and outstanding as of September 30, 2021 and December 31, 2020, respectively				3			3
	Additional paid-in capital				399,349			310,326
	Retained earnings				309,550			203,080
	Accumulated other comprehensive loss				(2,207)			(823)
		Total B. Riley Financial, Inc. stockholders' equity			706,695			512,586
Noncontrolling interests					40,512			26,374
		Total equity			747,207			538,960
			Total liabilities and equity	$	5,046,851		$	2,662,730

 

B. RILEY FINANCIAL, INC.
Condensed Consolidated Statements of Income
(Unaudited)
(Dollars in thousands, except share data)
			Three Months Ended						Nine Months Ended
			September 30,						September 30,
			2021			2020			2021			2020
Revenues:
	Services and fees		$	301,497		$	144,823		$	857,109		$	429,799
	Trading income (losses) and fair value adjustments on loans			18,197			31,753			317,818			(36,142)
	Interest income - Loans and securities lending			26,869			26,026			89,280			72,383
	Sale of goods			34,959			23,651			54,244			26,475
		Total revenues		381,522			226,253			1,318,451			492,515
Operating expenses:
	Direct cost of services			18,019			23,264			41,435			51,201
	Cost of goods sold			12,442			9,813			21,394			11,442
	Selling, general and administrative expenses			244,218			97,143			635,484			291,449
	Restructuring charge			—			1,557			—			1,557
	Impairment of tradenames			—			—			—			12,500
	Interest expense - Securities lending and loan participations sold			10,097			10,975			40,269			30,669
		Total operating expenses		284,776			142,752			738,582			398,818
		Operating income		96,746			83,501			579,869			93,697
Other income (expense):
	Interest income			70			67			175			537
	Gain on extinguishment of loans and other			1,758			—			8,267			—
	Income (loss) from equity investments			1,149			409			1,172			(145)
	Interest expense			(25,372)			(16,374)			(66,014)			(48,537)
		Income before income taxes		74,351			67,603			523,469			45,552
Provision for income taxes				(22,693)			(18,711)			(140,113)			(13,380)
		Net income		51,658			48,892			383,356			32,172
Net income (loss) attributable to noncontrolling interests				1,108			513			2,474			(1,382)
		Net income attributable to B. Riley Financial, Inc.	$	50,550		$	48,379		$	380,882		$	33,554
Preferred stock dividends				1,929			1,088			5,467			3,230
		Net income available to common shareholders	$	48,621		$	47,291		$	375,415		$	30,324
Basic income per common share			$	1.76		$	1.86		$	13.75		$	1.18
Diluted income per common share			$	1.69		$	1.75		$	13.07		$	1.14
Weighted average basic common shares outstanding				27,570,716			25,446,292			27,297,917			25,699,735
Weighted average diluted common shares outstanding				28,794,066			27,050,448			28,726,492			26,689,700

 

B. RILEY FINANCIAL, INC.
Segment Financial Information
(Unaudited)
(Dollars in thousands)
			Three Months Ended						Nine Months Ended
			September 30,						September 30,
			2021			2020			2021			2020
Capital Markets segment:
	Revenues - Services and fees		$	134,849		$	55,815		$	431,825		$	189,779
	Trading income (loss) and fair value adjustments on loans			16,935			31,399			311,335			(36,536)
	Interest income - Loans and securities lending			26,869			26,026			89,280			72,383
	Total revenues			178,653			113,240			832,440			225,626
	Selling, general and administrative expenses			(80,152)			(40,920)			(231,765)			(125,844)
	Restructuring charge			—			(917)			—			(917)
	Interest expense - Securities lending and loan participations sold			(10,097)			(10,975)			(40,269)			(30,669)
	Depreciation and amortization			(514)			(673)			(1,526)			(1,864)
		Segment income		87,890			59,755			558,880			66,332
Wealth Management segment:
	Revenues - Services and fees			117,572			17,289			270,558			51,494
	Trading income and fair value adjustments on loans			1,262			354			6,483			394
	Total revenues			118,834			17,643			277,041			51,888
	Selling, general and administrative expenses			(110,157)			(16,395)			(260,331)			(49,226)
	Depreciation and amortization			(2,093)			(468)			(6,832)			(1,421)
		Segment income		6,584			780			9,878			1,241
Auction and Liquidation segment:
	Revenues - Services and fees			2,745			21,473			15,637			49,340
	Revenues - Sale of goods			34,327			22,712			52,162			23,757
	Total revenues			37,072			44,185			67,799			73,097
	Direct cost of services			(13,622)			(18,373)			(27,742)			(36,406)
	Cost of goods sold			(11,999)			(9,046)			(19,578)			(9,360)
	Selling, general and administrative expenses			(5,153)			(4,625)			(9,719)			(8,880)
	Restructuring charge			—			(140)			—			(140)
	Depreciation and amortization			—			(1)			—			(2)
		Segment income		6,298			12,000			10,760			18,309
Financial Consulting segment:
	Revenues - Services and fees			21,291			25,583			66,435			65,142
	Selling, general and administrative expenses			(18,436)			(17,759)			(55,896)			(48,756)
	Restructuring charge			—			(500)			—			(500)
	Depreciation and amortization			(86)			(76)			(273)			(216)
		Segment income		2,769			7,248			10,266			15,670
Principal Investments - United Online and magicJack segment:
	Revenues - Services and fees			18,669			20,663			57,394			63,037
	Revenues - Sale of goods			631			939			2,081			2,718
	Total revenues			19,300			21,602			59,475			65,755
	Direct cost of services			(4,397)			(4,891)			(13,693)			(14,795)
	Cost of goods sold			(443)			(767)			(1,816)			(2,082)
	Selling, general and administrative expenses			(5,458)			(4,840)			(15,096)			(14,352)
	Depreciation and amortization			(2,496)			(2,736)			(7,558)			(8,466)
		Segment income		6,506			8,368			21,312			26,060
Brands segment:
	Revenues - Services and fees			6,372			4,000			15,261			11,007
	Selling, general and administrative expenses			(972)			(994)			(2,338)			(2,207)
	Depreciation and amortization			(714)			(714)			(2,143)			(2,143)
	Impairment of tradenames			—			—			—			(12,500)
		Segment income (loss)		4,686			2,292			10,780			(5,843)
Consolidated operating income from reportable segments				114,733			90,443			621,876			121,769
Corporate and other expenses				(17,987)			(6,942)			(42,007)			(28,072)
Interest income				70			67			175			537
Gain on extinguishment of loans and other				1,758			—			8,267			—
Income (loss) on equity investments				1,149			409			1,172			(145)
Interest expense				(25,372)			(16,374)			(66,014)			(48,537)
	Income before income taxes			74,351			67,603			523,469			45,552
Provision for income taxes				(22,693)			(18,711)			(140,113)			(13,380)
	Net income			51,658			48,892			383,356			32,172
Net income (loss) income attributable to noncontrolling interests				1,108			513			2,474			(1,382)
	Net income attributable to B. Riley Financial, Inc.			50,550			48,379			380,882			33,554
Preferred stock dividends				1,929			1,088			5,467			3,230
	Net income available to common shareholders		$	48,621		$	47,291		$	375,415		$	30,324

 

B. RILEY FINANCIAL, INC.
Adjusted EBITDA and Operating Adjusted EBITDA Reconciliation
(Unaudited)
(Dollars in thousands)
				Three Months Ended						Nine Months Ended
				September 30,						September 30,
				2021			2020			2021			2020
Net income attributable to B. Riley Financial, Inc.				$	50,550		$	48,379		$	380,882		$	33,554
Adjustments:
	Provision for income taxes				22,693			18,711			140,113			13,380
	Interest expense				25,372			16,374			66,014			48,537
	Interest income				(70)			(67)			(175)			(537)
	Share based payments				9,374			4,778			23,508			14,267
	Depreciation and amortization				6,142			4,886			19,066			14,765
	Restructuring costs				—			1,557			—			1,557
	Gain on extinguishment of loans				—			—			(6,509)			—
	Impairment of tradenames				—			—			—			12,500
	Transactions related costs and other				40			(485)			1,570			8,309
		Total EBITDA adjustments			63,551			45,754			243,587			112,778
			Adjusted EBITDA	$	114,101		$	94,133		$	624,469		$	146,332
Operating EBITDA Adjustments:
	Trading (income) losses and fair value adjustments on loans				(18,197)			(31,753)			(317,818)			36,142
	Other investment related expenses				5,187			4,842			9,281			2,412
		Total Operating EBITDA Adjustments			(13,010)			(26,911)			(308,537)			38,554
Operating Adjusted EBITDA				$	101,091		$	67,222		$	315,932		$	184,886

 

B. RILEY FINANCIAL, INC.
Adjusted Net Income Reconciliation
(Unaudited)
(Dollars in thousands, except share data)
		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2021			2020			2021			2020
Net income attributable to B. Riley Financial, Inc.		$	50,550		$	48,379		$	380,882		$	33,554
Adjustments:
	Share based payments		9,374			4,778			23,508			14,267
	Amortization of intangible assets		5,156			3,919			16,176			11,967
	Restructuring costs		—			1,557			—			1,557
	Gain on extinguishment of loans		—			—			(6,509)			—
	Impairment of tradenames		—			—			—			12,500
	Transactions related costs and other		40			(485)			1,570			8,309
	Income tax effect of adjusting entries		(4,514)			(2,725)			(9,587)			(13,456)
Adjusted net income attributable to B. Riley Financial, Inc.		$	60,606		$	55,423		$	406,040		$	68,698
Adjusted income per common share:
	Adjusted basic income per share	$	2.20		$	2.18		$	14.87		$	2.67
	Adjusted diluted income per share	$	2.10		$	2.05		$	14.13		$	2.57
Shares used to calculate adjusted basic net income per share			27,570,716			25,446,292			27,297,917			25,699,735
Shares used to calculate adjusted diluted net income per share			28,794,066			27,050,448			28,726,492			26,689,700

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/b-riley-financial-reports-third-quarter-2021-results-declares-4-00-dividend-301411419.html

SOURCE B. Riley Financial

FAQ

What were B. Riley Financial's Q3 2021 earnings results?

B. Riley Financial reported a net income of $48.6 million with diluted EPS of $1.69, reflecting a 3% decline year-over-year.

How much revenue did B. Riley Financial generate in Q3 2021?

Total revenues for Q3 2021 were $381.5 million, an increase of 69% compared to the same period last year.

What is the dividend declared by B. Riley Financial for Q3 2021?

B. Riley Financial declared a total quarterly dividend of $4.00 per share, which includes a regular dividend of $1.00 and a special dividend of $3.00.

What were the adjusted EBITDA figures for B. Riley Financial in Q3 2021?

Total adjusted EBITDA for Q3 2021 was $114.1 million, up 21% year-over-year.

What is the current cash position of B. Riley Financial?

As of September 30, 2021, B. Riley Financial had approximately $2.3 billion in cash and investments.