Log in
Log in
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
Sign up
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     

B. RILEY FINANCIAL, INC.

(RILY)
  Report
Delayed Nasdaq  -  04:00 2022-09-27 pm EDT
45.43 USD   -0.76%
09/19Insider Buy: B. Riley Financial
MT
09/19Insider Buy: B. Riley Financial
MT
09/19B. Riley Expands Wealth Management Division with Addition of Jay Murphy
PR
SummaryQuotesChartsNewsCalendarCompanyFinancialsFunds 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

B Riley Financial : Reports Fourth Quarter and Full Year 2021 Results - Form 8-K

02/23/2022 | 05:04pm EDT

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

Q4 2021 Net income of $62.2 million, $2.08 diluted EPS

Q4 2021 Total revenues of $422.1 million, total adjusted EBITDA of $138.0 million

Q4 2021 Operating revenues of $353.3 million, operating adjusted EBITDA of $106.1 million

Strong earnings driven by investment banking,
in addition to wealth management, principal investments, and brands

Declares regular quarterly dividend of $1.00 per common share

LOS ANGELES, February 23, 2022 - 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."

www.brileyfin.com | NASDAQ: RILY 1

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.

www.brileyfin.com | NASDAQ: RILY 2
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.

www.brileyfin.com | NASDAQ: RILY 3

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.

www.brileyfin.com | NASDAQ: RILY 4
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.

www.brileyfin.com | NASDAQ: RILY 5

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, 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.
www.brileyfin.com | NASDAQ: RILY 6

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
www.brileyfin.com | NASDAQ: RILY 7

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 issued and outstanding as of December 31, 2021 and 2020, respectively. 3 3
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
www.brileyfin.com | NASDAQ: RILY 8

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
www.brileyfin.com | NASDAQ: RILY 9

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
www.brileyfin.com | NASDAQ: RILY 10

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
www.brileyfin.com | NASDAQ: RILY 11

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

# # #

Source: B. Riley Financial, Inc.

www.brileyfin.com | NASDAQ: RILY 12

Disclaimer

B. Riley Financial Inc. published this content on 23 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 February 2022 21:58:34 UTC.


© Publicnow 2022
All news about B. RILEY FINANCIAL, INC.
09/19Insider Buy: B. Riley Financial
MT
09/19Insider Buy: B. Riley Financial
MT
09/19B. Riley Expands Wealth Management Division with Addition of Jay Murphy
PR
09/15Shaken Wall Street awaits final capitulation to greenlight buying
RE
09/14Shaken Wall Street awaits final capitulation to greenlight buying
RE
09/14Insider Buy: B. Riley Financial
MT
09/12Sector Update: Consumer Stocks Edge Higher Pre-Bell Monday
MT
09/12Sector Update: Consumer
MT
09/12IMedia Taps B.Riley as Advisor for Sale-Leaseback of Properties
MT
09/08Insider Buy: B. Riley Financial
MT
More news
Analyst Recommendations on B. RILEY FINANCIAL, INC.
More recommendations
Financials (USD)
Sales 2021 1 595 M - -
Net income 2021 445 M - -
Net Debt 2021 289 M - -
P/E ratio 2021 5,89x
Yield 2021 2,81%
Capitalization 1 285 M 1 285 M -
EV / Sales 2020 1,63x
EV / Sales 2021 1,72x
Nbr of Employees 1 406
Free-Float 54,0%
Chart B. RILEY FINANCIAL, INC.
Duration : Period :
B. Riley Financial, Inc. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends B. RILEY FINANCIAL, INC.
Short TermMid-TermLong Term
TrendsBearishNeutralBearish
Income Statement Evolution
Managers and Directors
Bryant Richard Riley Chairman & Co-Chief Executive Officer
Thomas John Kelleher Co-Chief Executive Officer & Director
Kenneth M. Young President
Phillip J. Ahn Chief Operating & Financial Officer
Daniel Shribman Chief Investment Officer
Sector and Competitors
1st jan.Capi. (M$)
B. RILEY FINANCIAL, INC.-48.87%1 285
MORGAN STANLEY-19.03%136 453
THE CHARLES SCHWAB CORPORATION-14.83%134 812
THE GOLDMAN SACHS GROUP, INC.-22.99%94 822
CITIC SECURITIES COMPANY LIMITED-31.58%35 373
CSC FINANCIAL CO., LTD.-25.21%22 757