Welcome to our dedicated page for B. Riley Financial news (Ticker: RILY), a resource for investors and traders seeking the latest updates and insights on B. Riley Financial stock.
Overview
B. Riley Financial, Inc. (symbol: RILY) is a diversified financial services firm offering a wide range of solutions including investment banking, capital advisory, and financial consulting services. The firm operates through several wholly-owned subsidiaries and affiliated entities to deliver comprehensive support in areas such as wealth management, corporate restructuring, risk and compliance, forensic accounting, litigation support, as well as asset disposition and valuation. With its robust, cross-platform expertise, B. Riley Financial provides tailored, full-service solutions to public and private companies, institutional clients, and high-net-worth individuals across the United States, Canada, and Europe.
Core Business and Services
B. Riley Financial leverages its integrated platform to serve clients at every stage of the business life cycle. The company’s operations are segmented into key areas that include:
- Capital Markets: Involves investment banking, underwriting, and strategic advisory services that support capital raising and restructuring efforts.
- Wealth Management: Offers tailored investment management solutions and financial planning services designed for institutional investors and high-net-worth individuals.
- Financial Consulting: Provides forensic accounting, litigation support, risk management, and valuation and appraisal services.
- Auction and Liquidation: Manages asset dispositions, including auction and liquidation services with comprehensive valuation analyses.
- Communications and Consumer Products: Extends into areas such as internet access and subscription-based services, complementing its core offerings.
Business Model and Market Position
The company’s robust business model is built on leveraging the diverse expertise of its subsidiaries to offer end-to-end financial solutions. B. Riley Financial generates revenue through a mix of advisory fees, transactional services, underwriting activities, and proprietary investments. Operating across multiple segments, the firm not only meets traditional capital raising needs but also provides specialized advisory in distressed asset situations, complex restructurings, and forensic investigations. This diversified approach enables the company to deliver uncorrelated free cash flow and maintain a resilient balance sheet, even amid market fluctuations.
Expertise and Industry Approach
B. Riley Financial is known for its collaborative, client-focused approach that benefits from decades of industry-specific experience and technical proficiency. The firm’s strategic differentiation comes from its ability to integrate services across investment banking, wealth management, and advisory platforms, ensuring that clients receive comprehensive financial solutions. The emphasis on due diligence, risk and compliance, and forensic accounting underlines the company’s commitment to robust analytical practices and transparency, which are critical in complex financial transactions.
Subsidiaries and Operational Structure
The company operates through a portfolio of subsidiaries that specialize in different areas of the financial services landscape. This structure includes teams focused on capital management, independent broker-dealer operations, and niche advisory services that address asset monetization, restructuring, and valuation. Such a configuration allows for a tailored, flexible approach to meet the varied strategic, operational, and financial needs of its clients. Through its subsidiary B. Riley Securities, for instance, the company has cemented its reputation in the middle market, offering specialized services in equity research and capital structure advisory.
Competitive Landscape and Value Proposition
In a competitive financial services market, B. Riley Financial distinguishes itself by blending traditional investment banking with innovative advisory solutions. The firm’s integrated service model is backed by extensive experience, which enables it to manage both routine and complex financial situations. This capability is particularly beneficial to middle-market companies seeking diversified support without the need for multiple service providers. By maintaining a focus on core financial operations while opportunistically investing in non-traditional assets, B. Riley Financial offers a nuanced, resilient platform that adapts to evolving market dynamics.
Client Focus and Service Excellence
The firm serves a broad spectrum of clients—from rapidly growing middle-market companies and established corporations to high-net-worth individuals seeking capital management and estate planning solutions. Its long history in the industry is a testament to its discipline in managing client relationships, mitigating risk, and executing complex transactions in environments that demand both agility and precision. With a transparent and unbiased approach, B. Riley Financial reinforces investor confidence and demonstrates its commitment to high standards of corporate governance and fiduciary responsibility.
Conclusion
B. Riley Financial, Inc. remains a significant player in the financial services sector by consistently providing integrated, cross-platform financial solutions tailored to diverse client needs. Its methodical approach to capital markets, wealth management, and comprehensive advisory services makes it a reliable partner for entities seeking both stability and extensive industry know-how. The company’s endurance in addressing capital, operational, and strategic challenges underscores its enduring value proposition in an increasingly complex financial environment.
B. Riley Financial (NASDAQ: RILY) has declared cash dividends for its preferred stock. The 6.875% Series A Cumulative Perpetual Preferred Stock (RILYP) will receive a dividend of $0.42968750 per depositary share, while the 7.375% Series B (RILYL) will receive $0.4609375 per depositary share. These dividends are payable on or about January 31, 2021, to shareholders on record as of January 21, 2021. Each depositary share has a liquidation preference of $25.00.
B. Riley Financial, Inc. (NASDAQ: RILY) released its financial guidance for Q4 and full-year 2020, projecting net income of $109-$112 million for Q4 and $143-$146 million for the full year, indicating over 75% growth from 2019. Adjusted EBITDA for Q4 is forecasted at $175-$180 million while full-year EBITDA is expected to be $321-$326 million, up 55% from the prior year. Recent strategic investments in Lingo Communications and Justice clothing brand are anticipated to drive future cash flow. Investment gains are estimated at $80 million for Q4 and $44 million for FY2020.
B. Riley Financial (NASDAQ: RILY) has acquired a significant interest in the clothing brand Justice through Bluestar Alliance's acquisition of the brand's assets from ascena retail group. Justice, which generated over $1 billion in annual revenue in 2019, is expected to enhance B. Riley's brand licensing investments. The investment aims to leverage Justice's opportunities for global expansion, e-commerce growth, and additional product categories. This acquisition aligns with B. Riley's strategy to generate recurring revenues and expand its portfolio in consumer brands.
B. Riley Financial (NASDAQ: RILY) has launched a new Financial Sponsors Group, aiming to enhance relationships with alternative capital managers such as private equity firms and hedge funds. Dan Kraft and Tim Bottrell have been appointed as Co-Directors, bringing extensive investment banking experience from J.P. Morgan and Goldman Sachs, respectively. Their expertise is expected to drive value for middle-market sponsors, with a strong focus on delivering comprehensive service offerings. This initiative is seen as a significant milestone in the company's growth strategy.
On November 5, 2020, B. Riley Financial (NASDAQ: RILY) announced the launch of B. Riley Operations Management Services, following the acquisition of assets from Anchor Resource Management Consulting. This new division aims to assist middle-market manufacturing firms in improving operational efficiency and generating financial savings. Led by ARM founders Dan Ruskin and Don Weathers, the service enhances B. Riley's restructuring capabilities and aims to identify potential investment opportunities within the manufacturing sector.
B. Riley Advisory Services, a subsidiary of B. Riley Financial (NASDAQ: RILY), has opened a new office in Mexico, led by seasoned executive Gaston Mauvezin. This expansion aims to enhance advisory services for U.S. companies operating in Mexico, focusing on areas such as restructuring, M&A, and corporate finance. The move is fueled by the growing demand for advisory services in Mexico, one of the U.S.'s largest trading partners. The partnership with BTG Global Advisory and TCP Partners underlines the firm's commitment to providing comprehensive solutions across multiple industries.
B. Riley Financial, Inc. (NASDAQ:RILY) reported strong Q3 2020 results, achieving consolidated revenues of $226.3 million, net income of $47.3 million or $1.75 per diluted share, and adjusted EBITDA of $94.1 million. This marked significant improvements from Q3 2019, with net income increasing from $34.3 million and adjusted EBITDA rising from $70.3 million. The company's capital markets segment drove growth, supported by an increase in advisory fees and retail liquidations. A regular dividend of $0.375 per share was announced, reflecting confidence in future performance.
B. Riley Financial, Inc. (NASDAQ:RILY) announced a conference call scheduled for October 29, 2020, at 4:30 p.m. ET to discuss its third-quarter earnings for the period ended September 30, 2020. The financial results will be disclosed in a press release before the call. The event will feature insights from key executives including Bryant Riley, Tom Kelleher, and Phillip Ahn. Interested parties can listen live or access the archived recording on the Company's investor relations website.
B. Riley Financial, Inc. (NASDAQ: RILY) announced a quarterly cash dividend of $0.42968750 for its 6.875% Series A Preferred Stock and an initial dividend of $0.29193 for its 7.375% Series B Preferred Stock. Both dividends will be payable on October 31, 2020, to record holders as of October 21, 2020. The Series A shares trade under the symbol RILYP and Series B shares under RILYL. These actions reflect the company’s commitment to returning value to shareholders.
B. Riley Financial (NASDAQ: RILY) announced a strategic investment in IQvestment Holdings, enhancing its fintech capabilities and expanding its business-to-business eCommerce platform. Chuck Hastings, CEO of B. Riley Wealth Management, and Jon Merriman, Chief Business Officer, will join IQvestment’s board and advisory board, respectively. The partnership aims to leverage B. Riley's experience and technology to improve wealth management services for retail clients. This investment positions B. Riley as a key player in the evolving digital investment landscape.
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