B. Riley Financial Reports Third Quarter 2022 Results; Declares $1.00 Dividend

Rhea-AI Summary

B. Riley Financial reported total revenues of $340.4 million for Q3 2022, down from $381.5 million in Q3 2021. Net income was $45.8 million, or $1.53 per diluted share, a decrease from $48.6 million or $1.69 per share year-over-year. However, Adjusted EBITDA rose to $141.4 million, compared to $114.1 million in the prior year. The company declared a quarterly dividend of $1.00 per share and approved a $50 million share repurchase plan. This performance highlights B. Riley's resilience and strategic investments despite challenging market conditions.

Positive

• Adjusted EBITDA increased to $141.4 million, up from $114.1 million YoY.
• Quarterly dividend of $1.00 per share, signifying strong cash flow management.
• Share repurchase plan of up to $50 million approved by the Board.

Negative

• Total revenues decreased to $340.4 million from $381.5 million YoY.
• Net income fell to $45.8 million from $48.6 million YoY.

Total Revenues of $340.4 million
Net Income of $45.8 million, Diluted EPS of $1.53
Adjusted EBITDA of $141.4 million

Declares Quarterly Dividend of $1.00 per common share
Board Approves Share Repurchase Plan of up to $50 million

LOS ANGELES, Nov. 3, 2022 /PRNewswire/ -- B. Riley Financial, Inc. (NASDAQ: RILY) ("B. Riley" or the "Company"), a diversified financial services platform, today released results for the three-month period ending September 30, 2022.

Bryant Riley, Chairman and Co-Chief Executive Officer of B. Riley Financial, commented: "Our third quarter results represent the underlying strength and continued versatility of our diversified platform despite the meaningful slowdown in capital markets. Our ability to generate solid operating results over the past nine months has enabled us to deliver our shareholders with a third quarter dividend of $1.00 per share, and over $83 million in common dividends related to our performance in the current year."

"Stable operating performance and steady cash flow have provided us a solid foundation with which to operate as we continue to opportunistically invest to enhance our platform. During the quarter, we added BullsEye Telecom to our Lingo subsidiary and expanded our receivables portfolio. And in the beginning of the fourth quarter, we acquired Targus® in a transaction valued at $250 million. These additions are expected to further balance our episodic and cyclical businesses, while meaningfully augmenting our steady and recurring earnings and cash flows as we look ahead," added Riley.

"It has been over a decade since we have endured a capital markets environment as challenging as the one we navigate today. While we have maintained meaningful profitability, we recognize that the current market environment presents both opportunities and challenges for capital markets and wealth management. Our diversified business is well-structured for continued resiliency in the event challenging markets persist, or even intensify. Cost discipline over our 25-year history has afforded us the agility and flexibility to continue to thrive and aggregate share amid periods of market dislocation. At the same time, steady and growing cash flows have enabled us to return meaningful capital to our shareholders as we continue to invest in our business. We expect to see numerous opportunities over the next 12 to 24 months as market valuations adjust, and believe we are in a very strong position to take advantage of those opportunities."

Tom Kelleher, Co-Chief Executive Officer of B. Riley Financial, added: "Our world class team of professionals has continued to make great strides incorporating acquisitions and welcoming new colleagues to B. Riley, while continuing to support our clients and partners amid a difficult environment. Embedded throughout our platform is core expertise across restructuring, debt refinancing, direct lending, bankruptcy advisory, and asset disposition. As financial conditions tighten and demand for these services continue to accelerate, we believe our counter-cyclical businesses will be poised for growth in the coming quarters."

Declaration of Common Dividend
The Company has declared a regular quarterly cash dividend of $1.00 per common share payable on or about November 29 to common stockholders of record as of November 15.

Share Repurchase Authorization
B. Riley's Board of Directors has approved an annual share repurchase plan under which the Company may repurchase up to $50 million of its common shares.

Third Quarter 2022 Financial Summary

			Three Months Ended								Nine Months Ended
			September 30,								September 30,
	(Dollars in thousands, except for share data)			2022				2021				2022				2021
	Net income (loss) available to common shareholders		$	45,835			$	48,621			$	(108,390)			$	375,415
	Basic income (loss) per common share		$	1.62			$	1.76			$	(3.86)			$	13.75
	Diluted income (loss) per common share		$	1.53			$	1.69			$	(3.86)			$	13.07

 

B. Riley Financial reported total revenues of $340.4 million, compared with $381.5 million for the third quarter ended September 30, 2021.

Net income available to common shareholders was $45.8 million, or $1.53 per diluted share, compared to $48.6 million, or $1.69 per diluted share in the prior-year period.

Total adjusted EBITDA for the quarter was $141.4 million, compared to $114.1 million in the prior year period.

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
(Dollars in thousands)			2022				2021				2022				2021
Operating Revenues (2)		$	328,209			$	363,325			$	868,815			$	1,000,633
Investment Gains (Loss) (4)			12,154				18,197				(280,163)				317,818
Total Revenues		$	340,363			$	381,522			$	588,652			$	1,318,451
Operating Adjusted EBITDA (3)		$	106,244			$	101,091			$	264,651			$	315,932
Investment Adjusted EBITDA (5)			35,193				13,010				(218,329)				308,537
Total Adjusted EBITDA (1)		$	141,437			$	114,101			$	46,322			$	624,469

 

For the third quarter ended September 30, 2022:
Operating revenues ⁽²⁾ were $328.2 million, compared with $363.3 million for the third quarter ended September 30, 2021. Operating adjusted EBITDA ⁽³⁾ increased to $106.2 million, compared with $101.1 million in the prior year period.

Quarterly investment gains were $12.2 million for the quarter, which reflect certain strategic investments held by the Company.

Quarterly results benefitted from $13.2 million of income related to the deconsolidation of B. Riley Principal 150 Merger Corp. as result of its business combination with FaZe Clan Inc.

Balance Sheet Highlights
As of September 30, 2022, cash and investments ⁽⁶⁾ totaled approximately $2.33 billion including cash and cash equivalents of $231.8 million, $1.2 billion in net securities and other investments owned, and $814.7 million in loans receivable.

Total debt was approximately $2.32 billion as of September 30. Total cash and investments, ⁽⁶⁾ net of debt, was approximately $14 million at quarter-end.

Third Quarter 2022 Segment Financial Summary

		Operating Revenues (2)						Investment Gains (Loss) (4)						Total Segment Revenue
		Three Months Ended September 30,						Three Months Ended September 30,						Three Months Ended September 30,
	(Dollars in thousands)	2022			2021			2022			2021			2022			2021
	Capital Markets		$      168,271			$       161,718			$        11,127			$         16,935			$      179,398			$       178,653
	Wealth Management		47,145			117,572			1,027			1,262			48,172			118,834
	Auction and Liquidation		7,039			37,072			-			-			7,039			37,072
	Financial Consulting		22,835			21,291			-			-			22,835			21,291
	Principal Investments - Communications and Other		77,896			19,300			-			-			77,896			19,300
	Brands		5,023			6,372			-			-			5,023			6,372
		Segment Operating Income (Loss) (7)						Investment Income (Loss) (5)						Total Segment Income (Loss)
		Three Months Ended September 30,						Three Months Ended September 30,						Three Months Ended September 30,
	(Dollars in thousands)	2022			2021			2022			2021			2022			2021
	Capital Markets		$        90,767			$         76,142			$        33,337			$         11,748			$      124,104			$         87,890
	Wealth Management		(10,524)			5,322			1,027			1,262			(9,497)			6,584
	Auction and Liquidation		577			6,298			-			-			577			6,298
	Financial Consulting		2,704			2,769			-			-			2,704			2,769
	Principal Investments - Communications and Other		1,906			6,506			-			-			1,906			6,506
	Brands		3,599			4,686			-			-			3,599			4,686

For the three months ended September 30, 2022:

Capital Markets revenues of $179.4 million remained relatively flat, despite lower levels of investment banking and underwriting activity. Segment income increased to $124.1 million, up from $87.9 million in the prior year period, primarily driven by interest income from loans and securities lending.

Excluding investment gains⁽⁴⁾, Capital Markets segment operating revenues increased to $168.3 million, up from $161.7 million in the prior year period. Segment operating income ⁽⁷⁾ increased to $90.8 million from $76.1 million in the prior year period.

Wealth Management revenues decreased to $48.2 million, primarily impacted by our strategic exit of several brokers and certain businesses previously affiliated with National Securities, in addition to challenging market conditions which resulted in reduced client activity. Wealth assets under management were approximately $25 billion as of September 30, 2022.

Auction and Liquidation revenues were $7.0 million, primarily driven by ongoing engagements in Europe and smaller liquidation projects in the US. 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 $22.8 million, up from $21.3 million in the prior year period, primarily driven by sustained demand for appraisals, and bankruptcy restructuring and forensic litigation consulting. Segment income of $2.7 million remained steady compared to $2.8 million in the prior year period.

Principal Investments – Communications and Other segment revenues increased 304% to $77.9 million, up from $19.3 million in the prior year period due to the additions of Marconi Wireless, Lingo, and Bullseye Telecom. On a combined basis, communications businesses, along with other principal investments, continued to perform above expectations, contributing recurring cash flow to the Company.

Brands segment revenues were $5.0 million related to the licensing of trademarks for six brands: Catherine Malandrino, English Laundry, Joan Vass, Kensie Girl, Limited Too, and Nanette Lepore.

Investments in the Hurley and Justice brands contributed dividend income of $7.1 million for the quarter, compared to $4.3 million in the same period last year. Results related to the Hurley and Justice investments are recognized as Capital Markets segment operating income.⁽⁷⁾

Supplemental Financial Data
Additional details related to operating results and investment performance can be found in the Third Quarter 2022 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, November 3, 2022 at 4:30 p.m. Eastern time (1:30 p.m. Pacific time). Investors may access the live broadcast and archived recording via ir.brileyfin.com.

     Date and Time:                 Thursday, November 3, 2022 at 4:30 p.m. Eastern time (1:30 p.m. Pacific time)

     Dial In:                               1-800-239-9838 (toll-free) or 1-856-344-9221 (international)

     Audio Webcast:                 https://ir.brileyfin.com/events-and-presentations

     Replay (expires Thursday, November 10, 2022)
     Dial In:                  1-844-512-2921; 9397082 (pin)

About B. Riley Financial
B. Riley Financial is a diversified financial services platform that delivers tailored solutions to meet the strategic, operational, and capital needs of its clients and partners. B. Riley leverages cross-platform expertise to provide clients with full service, collaborative solutions at every stage of the business life cycle. Through its affiliated subsidiaries, B. Riley provides end-to-end, collaborative financial services across investment banking, institutional brokerage, private wealth and investment management, financial consulting, corporate restructuring, operations management, risk and compliance, due diligence, forensic accounting, litigation support, appraisal and valuation, auction, and liquidation services. B. Riley opportunistically invests to benefit its shareholders, and certain registered affiliates originate and underwrite senior secured loans for asset-rich companies. B. Riley refers to B. Riley Financial, Inc. and/or one or more of its subsidiaries or affiliates. For more information, please visit www.brileyfin.com.

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

(1)	Adjusted EBITDA includes earnings before interest, taxes, depreciation, amortization, restructuring charge, share-based payments, gain on extinguishment of loans, impairment of tradenames, and transaction related and other costs. 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 (losses) 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 operating 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 charge, gain on extinguishment of loans, impairment of trade names, stock-based compensation and transaction and other expenses, (iii) excluding in the case of operating adjusted EBITDA, 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, 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, 2022. 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 undertakes no duty to update this information.

Contacts

Investors
Mike Frank
ir@brileyfin.com
(212) 409-2424

Media
Jo Anne McCusker
press@brileyfin.com
(646) 885-5425

 

B. RILEY FINANCIAL, INC.
Consolidated Balance Sheets
(Dollars in thousands, except par value)
							September 30,			December 31,
							2022			2021
								(Unaudited)
Assets
Assets
	Cash and cash equivalents						$	231,805		$	278,933
	Restricted cash							1,578			927
	Due from clearing brokers							53,472			29,657
	Securities and other investments owned, at fair value							1,238,613			1,532,095
	Securities borrowed							2,243,306			2,090,966
	Accounts receivable, net							64,707			49,673
	Due from related parties							814			2,074
	Loans receivable, at fair value (includes $68,575 and $167,744 from related parties as of September 30, 2022 and December 31, 2021, respectively.)							814,715			873,186
	Prepaid expenses and other assets							355,875			463,502
	Operating lease right-of-use assets							84,550			56,969
	Property and equipment, net							16,174			12,870
	Goodwill							429,187			250,568
	Other intangible assets, net							296,346			207,651
	Deferred tax assets, net							2,845			2,848
	Total assets						$	5,833,987		$	5,851,919
Liabilities and Equity
Liabilities
	Accounts payable						$	22,167		$	6,326
	Accrued expenses and other liabilities							278,889			343,750
	Deferred revenue							89,157			69,507
	Deferred tax liabilities, net							10,932			93,055
	Due to related parties and partners							396			—
	Due to clearing brokers							3,942			69,398
	Securities sold not yet purchased							17,751			28,623
	Securities loaned							2,239,250			2,088,685
	Operating lease liabilities							96,049			69,072
	Notes payable							25,075			357
	Revolving credit facility							74,700			80,000
	Term loans, net							558,035			346,385
	Senior notes payable, net							1,661,191			1,606,560
	Total liabilities							5,077,534			4,801,718
Commitments and contingencies
Redeemable noncontrolling interests in equity of subsidiaries								178,759			345,000
B. Riley Financial, Inc. equity:
	Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 4,535 and 4,512 issued and
	outstanding as of September 30, 2022 and December 31, 2021, respectively; liquidation preference
	of $113,380 and $112,790 as of September 30, 2022 and December 31, 2021, respectively.							—			—
	Common stock, $0.0001 par value; 100,000,000 shares authorized; 28,300,003 and 27,591,028 issued and outstanding as of September 30, 2022 and December 31, 2021, respectively.							3			3
	Additional paid-in capital							473,420			413,486
	Retained earnings							46,916			248,862
	Accumulated other comprehensive loss							(6,726)			(1,080)
	Total B. Riley Financial, Inc. stockholders' equity							513,613			661,271
Noncontrolling interests								64,081			43,930
	Total equity							577,694			705,201
	Total liabilities and equity						$	5,833,987		$	5,851,919

 

B. RILEY FINANCIAL, INC.
Consolidated Statements of Operations
(Unaudited)
(Dollars in thousands, except share data)
							Three Months Ended						Nine Months Ended
							September 30,						September 30,
							2022			2021			2022			2021
Revenues:
	Services and fees						$	266,485		$	301,497		$	678,065		$	857,109
	Trading income (losses) and fair value adjustments on loans							12,154			18,197			(280,163)			317,818
	Interest income - Loans and securities lending							57,594			26,869			182,855			89,280
	Sale of goods							4,130			34,959			7,895			54,244
		Total revenues						340,363			381,522			588,652			1,318,451
Operating expenses:
	Direct cost of services							44,523			18,019			73,959			41,435
	Cost of goods sold							3,089			12,442			7,334			21,394
	Selling, general and administrative expenses							163,727			244,218			506,062			635,484
	Restructuring charge							8,016			—			8,016			—
	Interest expense - Securities lending and loan participations sold							17,447			10,097			43,757			40,269
		Total operating expenses						236,802			284,776			639,128			738,582
			Operating income (loss)					103,561			96,746			(50,476)			579,869
Other income (expense):
	Interest income							686			70			1,253			175
	Change in fair value of financial instruments and other							(574)			1,758			9,728			8,267
	(Loss) income from equity investments							(91)			1,149			3,285			1,172
	Interest expense							(34,587)			(25,372)			(96,787)			(66,014)
		Income (loss) before income taxes						68,995			74,351			(132,997)			523,469
(Provision for) benefit from income taxes								(16,350)			(22,693)			39,858			(140,113)
		Net income (loss)						52,645			51,658			(93,139)			383,356
Net income attributable to noncontrolling interests
and redeemable noncontrolling interests								4,808			1,108			9,245			2,474
		Net income (loss) attributable to B. Riley Financial, Inc.						47,837			50,550			(102,384)			380,882
Preferred stock dividends								2,002			1,929			6,006			5,467
		Net income (loss) available to common shareholders					$	45,835		$	48,621		$	(108,390)		$	375,415
Basic income (loss) per common share							$	1.62		$	1.76		$	(3.86)		$	13.75
Diluted income (loss) per common share							$	1.53		$	1.69		$	(3.86)		$	13.07
Weighted average basic common shares outstanding								28,293,064			27,570,716			28,068,160			27,297,917
Weighted average diluted common shares outstanding								29,968,417			28,794,066			28,068,160			28,726,492

 

B. RILEY FINANCIAL, INC.
Segment Financial Information
(Unaudited)
(Dollars in thousands)
						Three Months Ended						Nine Months Ended
						September 30,						September 30,
						2022			2021			2022			2021
Capital Markets segment:
	Revenues - Services and fees					$	113,217		$	134,849		$	249,727		$	431,825
	Trading income (loss) and fair value adjustments on loans						11,127			16,935			(283,240)			311,335
	Interest income - Loans and securities lending						55,054			26,869			178,879			89,280
	Total revenues						179,398			178,653			145,366			832,440
	Selling, general and administrative expenses						(35,673)			(80,152)			(115,655)			(231,765)
	Interest expense - Securities lending and loan participations sold						(17,447)			(10,097)			(43,757)			(40,269)
	Depreciation and amortization						(2,174)			(514)			(6,271)			(1,526)
		Segment income (loss)					124,104			87,890			(20,317)			558,880
Wealth Management segment:
	Revenues - Services and fees						47,145			117,572			184,963			270,558
	Trading income and fair value adjustments on loans						1,027			1,262			3,077			6,483
	Total revenues						48,172			118,834			188,040			277,041
	Selling, general and administrative expenses						(52,302)			(110,157)			(206,438)			(260,331)
	Restructuring charge						(4,106)			—			(4,106)			—
	Depreciation and amortization						(1,261)			(2,093)			(4,402)			(6,832)
		Segment (loss) income					(9,497)			6,584			(26,906)			9,878
Auction and Liquidation segment:
	Revenues - Services and fees						1,949			2,745			7,792			15,637
	Revenues - Sale of goods						2,550			34,327			2,550			52,162
	Interest income - Loans and securities lending						2,540			—			3,976			—
	Total revenues						7,039			37,072			14,318			67,799
	Direct cost of services						(2,999)			(13,622)			(6,630)			(27,742)
	Cost of goods sold						(1,235)			(11,999)			(1,235)			(19,578)
	Selling, general and administrative expenses						(2,228)			(5,153)			(6,225)			(9,719)
		Segment income					577			6,298			228			10,760
Financial Consulting segment:
	Revenues - Services and fees						22,835			21,291			73,081			66,435
	Selling, general and administrative expenses						(20,056)			(18,436)			(60,947)			(55,896)
	Depreciation and amortization						(75)			(86)			(234)			(273)
		Segment income					2,704			2,769			11,900			10,266
Principal Investments - Communications and Other segment:
	Revenues - Services and fees						76,316			18,669			147,748			57,394
	Revenues - Sale of goods						1,580			631			5,345			2,081
	Total revenues						77,896			19,300			153,093			59,475
	Direct cost of services						(41,524)			(4,397)			(67,329)			(13,693)
	Cost of goods sold						(1,854)			(443)			(6,099)			(1,816)
	Selling, general and administrative expenses						(22,267)			(5,458)			(44,103)			(15,096)
	Restructuring charge						(3,910)			—			(3,910)			—
	Depreciation and amortization						(6,435)			(2,496)			(13,255)			(7,558)
		Segment income					1,906			6,506			18,397			21,312
Brands segment:
	Revenues - Services and fees						5,023			6,372			14,754			15,261
	Selling, general and administrative expenses						(845)			(972)			(2,419)			(2,338)
	Depreciation and amortization						(579)			(714)			(1,745)			(2,143)
		Segment income					3,599			4,686			10,590			10,780
Consolidated operating income (loss) from reportable segments							123,393			114,733			(6,108)			621,876
Corporate and other expenses							(19,832)			(17,987)			(44,368)			(42,007)
Interest income							686			70			1,253			175
Change in fair value of financial instruments and other							(574)			1,758			9,728			8,267
(Loss) income on equity investments							(91)			1,149			3,285			1,172
Interest expense							(34,587)			(25,372)			(96,787)			(66,014)
	Income (loss) before income taxes						68,995			74,351			(132,997)			523,469
(Provision for) benefit from income taxes							(16,350)			(22,693)			39,858			(140,113)
	Net income (loss)						52,645			51,658			(93,139)			383,356
Net income attributable to noncontrolling interests
and redeemable noncontrolling interests							4,808			1,108			9,245			2,474
	Net income (loss) attributable to B. Riley Financial, Inc.						47,837			50,550			(102,384)			380,882
Preferred stock dividends							2,002			1,929			6,006			5,467
	Net income (loss) available to common shareholders					$	45,835		$	48,621		$	(108,390)		$	375,415

 

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,
							2022			2021			2022			2021
Net income (loss) attributable to B. Riley Financial, Inc.							$	47,837		$	50,550		$	(102,384)		$	380,882
Adjustments:
	Provision for (benefit from) income taxes							16,350			22,693			(39,858)			140,113
	Interest expense							34,587			25,372			96,787			66,014
	Interest income							(686)			(70)			(1,253)			(175)
	Share based payments							14,613			9,374			45,828			23,508
	Depreciation and amortization							10,717			6,142			26,526			19,066
	Restructuring charge							8,016			—			8,016			—
	Gain on extinguishment of loans							—			—			(1,102)			(6,509)
	Transactions related costs and other							10,003			40			13,762			1,570
		Total EBITDA Adjustments						93,600			63,551			148,706			243,587
			Adjusted EBITDA				$	141,437		$	114,101		$	46,322		$	624,469
Operating EBITDA Adjustments:
	Trading (income) losses and fair value adjustments on loans							(12,154)			(18,197)			280,163			(317,818)
	Other investment related expenses							(23,039)			5,187			(61,834)			9,281
		Total Operating EBITDA Adjustments						(35,193)			(13,010)			218,329			(308,537)
Operating Adjusted EBITDA							$	106,244		$	101,091		$	264,651		$	315,932

 

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,
							2022			2021			2022			2021
Net income (loss) attributable to B. Riley Financial, Inc.							$	47,837		$	50,550		$	(102,384)		$	380,882
Adjustments:
	Share based payments							14,613			9,374			45,828			23,508
	Amortization of intangible assets							9,390			5,156			23,146			16,176
	Restructuring charge							8,016			—			8,016			—
	Gain on extinguishment of loans							—			—			(1,102)			(6,509)
	Transactions related costs and other							10,003			40			13,762			1,570
	Income tax effect of adjusting entries							(10,704)			(4,514)			(23,593)			(9,587)
Adjusted net income (loss) attributable to B. Riley Financial, Inc.							$	79,155		$	60,606		$	(36,327)		$	406,040
Adjusted income (loss) per common share:
	Adjusted basic income (loss) per share						$	2.80		$	2.20		$	(1.29)		$	14.87
	Adjusted diluted income (loss) per share						$	2.64		$	2.10		$	(1.29)		$	14.13
Shares used to calculate adjusted basic net income per share								28,293,064			27,570,716			28,068,160			27,297,917
Shares used to calculate adjusted diluted net income per share								29,968,417			28,794,066			28,068,160			28,726,492

 

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/b-riley-financial-reports-third-quarter-2022-results-declares-1-00-dividend-301668329.html

SOURCE B. Riley Financial

FAQ

What were B. Riley Financial's total revenues for Q3 2022?

B. Riley Financial reported total revenues of $340.4 million for Q3 2022.

What is the diluted EPS for B. Riley Financial in Q3 2022?

The diluted EPS for B. Riley Financial in Q3 2022 was $1.53.

Did B. Riley Financial declare a dividend in Q3 2022?

Yes, B. Riley Financial declared a quarterly dividend of $1.00 per common share.

What adjustments were made to the EBITDA for B. Riley Financial in Q3 2022?

B. Riley Financial's Adjusted EBITDA increased to $141.4 million in Q3 2022.

What share repurchase plan was announced by B. Riley Financial?

B. Riley Financial's Board approved a share repurchase plan of up to $50 million.