Total revenues increased to $336.8 million, up 26% from Q2 2020
Operating revenues increased to $304.1 million, up 100% from Q2 2020
Diluted EPS of $2.58 and net income of $73.9 million, down 11% from Q2 2020
Operating EBITDA increased to $92.1 million, up 97% from Q2 2020
Total adjusted EBITDA of $124.9 million for the quarter
Declares total dividend of $2.00 per share, includes $0.50 regular and $1.50 special
PR Newswire
LOS ANGELES, July 29, 2021 /PRNewswire/ — B. Riley Financial, Inc. (NASDAQ: RILY), a diversified financial services company, today announced its financial results for the second quarter ended June 30, 2021.
Second Quarter 2021 Highlights
- Net income available to common shareholders of $73.9 million, down 11% year-over-year
- Total revenues of $336.8 million, up 26% year-over-year
- Total adjusted EBITDA (1) of $124.9 million
- Operating revenues (2) of $304.1 million, up 100% year-over-year
- Operating adjusted EBITDA (3) of $92.1 million, up 97% year-over-year
- Investment gains (4) of $32.7 million
Bryant Riley, Chairman and Co-Chief Executive Officer of B. Riley Financial, said: “Our operating EBITDA doubled on a year-over-year basis demonstrating continued strength across our businesses during the second quarter. Our results were driven by our investment banking division which continues to establish its leadership in small and mid-cap equity capital markets, supplemented by steady contributions from Advisory Services and Principal Investments. Increasing our capital base while simultaneously returning capital to shareholders and lowering our cost of capital has provided us with the financial flexibility to pursue the increasing number of opportunities that our diversified platform offers.”
Tom Kelleher, Co-Chief Executive Officer of B. Riley Financial, added: “Our recent addition of complementary businesses and key hires have helped increase synergies and cross-selling opportunities across our platform. As we continue to work towards integrating our colleagues from National Holdings and enhancing the services we offer to our clients, recruiting remains a key focus. We continue to seek out new talent and businesses that can expand our reach and capabilities across service lines.”
Riley added: “The successful execution of our platform strategy has allowed us to build a solid balance sheet while enabling us to return $8.50 in common stock dividends to shareholders over the last three quarters. As we look ahead, we see multiple pathways with which to grow shareholder value. We will continue to take advantage of market opportunities in our core segments while building on additional recurring revenue streams that are both noncorrelated and counter cyclical.”
Declaration of Common Stock Dividend
The Company’s Board of Directors has approved a total quarterly cash dividend of $2.00 per share which includes the regular $0.50 dividend and a special dividend of $1.50 per share. The dividend is payable on or about August 26, 2021 to common stockholders of record as of August 13, 2021.
Second Quarter 2021 Financial Summary
For the three months ended June 30, 2021, B. Riley Financial reported net income available to common shareholders of $73.9 million, or $2.58 per diluted share.
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Net income (loss) available to common shareholders |
$ |
73,887 |
$ |
82,753 |
$ |
326,794 |
$ |
(16,967) |
|||||
|
Basic income (loss) per common share |
$ |
2.70 |
$ |
3.23 |
$ |
12.03 |
$ |
(0.66) |
|||||
|
Diluted income (loss) per common share |
$ |
2.58 |
$ |
3.07 |
$ |
11.39 |
$ |
(0.66) |
|||||
Total revenues were $336.8 million for the second quarter of 2021, a year-over-year increase of 26% compared to $266.5 million for the prior-year period. The Company reported total adjusted EBITDA (1) of $124.9 million for the quarter.
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Operating Revenues (2) |
$ |
304,091 |
$ |
151,921 |
$ |
637,308 |
$ |
334,157 |
|||||
|
Investment Gains (Loss)(4) |
32,679 |
114,547 |
299,621 |
(67,895) |
|||||||||
|
|
|
|
|
|
|
|
|
|
|||||
|
Operating Adjusted EBITDA (3) |
$ |
92,124 |
$ |
46,757 |
$ |
214,841 |
$ |
117,664 |
|||||
|
Investment Adjusted EBITDA (5) |
32,763 |
101,507 |
295,527 |
(65,465) |
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Second quarter operating revenues (2) were $304.1 million, a year-over-year increase of 100% from $151.9 million for the prior-year period. Operating adjusted EBITDA (3) of $92.1 million increased from $46.8 million for the prior-year period, up 97% year-over-year.
Operating results were enhanced by second quarter investment gains (4) of $32.7 million which are primarily driven by mark-to-market valuations on strategic investments held by the Company.
As of June 30, 2021, cash and investments (6) totaled approximately $2.0 billion including cash and cash equivalents of $297.4 million. Total cash and investments, (6) net of debt, was $568.1 million at quarter-end.
Segment Financial Summary for the Three Months Ended June 30, 2021
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Capital Markets |
$ 151,488 |
$ 84,870 |
$ 29,897 |
$ 114,080 |
$ 181,385 |
$ 198,950 |
|||||||
|
Wealth Management |
87,444 |
15,318 |
2,865 |
467 |
90,309 |
15,785 |
|||||||
|
Auction and Liquidation |
17,277 |
8,251 |
– |
– |
17,277 |
8,251 |
|||||||
|
Financial Consulting |
23,735 |
18,845 |
– |
– |
23,735 |
18,845 |
|||||||
|
Principal Investments |
19,646 |
21,431 |
– |
– |
19,646 |
21,431 |
|||||||
|
Brands |
4,501 |
3,206 |
(83) |
– |
4,418 |
3,206 |
|||||||
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Capital Markets |
$ 74,701 |
$ 29,471 |
$ 29,981 |
$ 101,040 |
$ 104,682 |
$ 130,511 |
|||||||
|
Wealth Management |
(3,598) |
(435) |
2,865 |
467 |
(733) |
32 |
|||||||
|
Auction and Liquidation |
3,555 |
2,020 |
– |
– |
3,555 |
2,020 |
|||||||
|
Financial Consulting |
4,175 |
3,504 |
– |
– |
4,175 |
3,504 |
|||||||
|
Principal Investments |
7,275 |
9,188 |
– |
– |
7,275 |
9,188 |
|||||||
|
Brands |
3,096 |
(6,318) |
(83) |
– |
3,013 |
(6,318) |
|||||||
- Excluding investment gains, (4)Capital Markets operating revenues (2) increased to $151.5 million from $84.9 million from the prior-year period, up 78% year-over-year. Segment operating income (7) was $74.7 million, up 153% year-over-year, driven primarily by equity investment banking transactions.
- Wealth Management revenues of $90.3 million increased from $15.8 million for the prior-year period. A majority of the increase in revenue was due to the inclusion of a full quarter of results from National Holdings which the Company acquired in February 2021. Combined wealth management assets under management totaled approximately $32 billion as of June 30, 2021.
- Auction and Liquidation segment revenues increased to $17.3 million from $8.3 million for the prior-year period, up 109% year-over-year. Segment income increased to $3.6 million compared to $2.0 million for the prior-year period.
- Financial Consulting revenues increased to $23.7 million from $18.8 million for the prior-year period, up 26% year-over-year. Segment income increased to $4.2 million from $3.5 million for the prior-year period.
- Principal Investments companies, magicJack and United Online, contributed revenues of $19.6 million and segment income of $7.3 million. magicJack and United Online continued to perform above expectations, contributing recurring cash flow to the Company.
- Brands generated revenues of $4.4 million and segment income of $3.0 million related to the licensing of brand trademarks.
Financial Highlights for the First Six Months of 2021
- Total revenues increased to $936.9 million from $266.3 million, up 252% year-over-year.
- Net income available to common shareholders of $326.8 million, or $11.39 per diluted share, increased compared to a net loss of ($17.0 million), or ($0.66) loss per diluted share for the prior year period.
- Total adjusted EBITDA (1) of $510.4 million increased compared to $52.2 million for the prior-year period.
- Operating revenues (2) increased to $637.3 million from $334.2 million, up 91% year-over-year.
- Operating adjusted EBITDA (3) of $214.8 million increased 83% compared to $117.7 million for the prior-year period.
- Excluding investment gains (losses), (4) Capital Markets operating revenues (2) increased to $359.4 million from $180.3 million, up 99% year-over-year. Segment operating income (7) totaled $180.7 million.
- Wealth Management segment revenues increased to $158.2 million from $34.2 million, up 362% year-over-year.
- Auction and Liquidation segment revenues increased to $30.7 million, up from $28.9 million for the prior-year period.
- Financial Consulting segment revenues increased to $45.1 million, up from $39.6 million for the prior-year period.
- Principal Investments contributed segment revenues of $40.2 million and segment income of $14.8 million.
- Brands contributed segment revenues of $8.9 million and segment income of $6.1 million.
Additional Metrics and Supplemental Financial Data
Additional metrics related to operating results and investments are presented to provide investors with greater visibility into the Company’s performance and overall results of operations. Further details related to these metrics can be found in B. Riley Financial’s Second Quarter 2021 Financial Supplement located on the Company’s investor relations website.
Segment Realignment
The Company previously realigned its segment reporting structure for Wealth Management during the first quarter of 2021 as a result of the National Holdings acquisition, and Financial Consulting during the fourth quarter of 2020 to reflect certain organizational changes. Segment results have been recast for all periods presented in conjunction with the new reporting structure.
Conference Call Details
B. Riley Financial will host a conference call to discuss its second quarter 2021 financial results at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) today, Thursday, July 29, 2021. Investors may access the live broadcast and archived recording via the Company’s investor relations website.
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Date and Time: |
Thursday July 29, 2021 at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) |
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Dial In: |
1-855-327-6838 (toll-free) or 1-604-235-2082 (international) |
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Audio Webcast: |
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Replay (expires Thursday, August 5, 2021) |
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Dial In: |
1-844-512-2921; 10015719 (pin) |
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Replay Link: |
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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.
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(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) other investments participation sold reported in noncontrolling interest, advances against customer contracts, loans receivable, at fair value net of loan participations sold, and other equity 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 Report on Form 10-Q for the quarter ended March 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 June 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.
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Mike Frank |
Jo Anne McCusker |
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(212) 409-2424 |
(646) 885-5425 |
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Assets: |
||||||||
|
Cash and cash equivalents |
$ |
297,396 |
$ |
103,602 |
||||
|
Restricted cash |
1,335 |
1,235 |
||||||
|
Due from clearing brokers |
424,949 |
7,089 |
||||||
|
Securities and other investments owned, at fair value |
1,278,773 |
777,319 |
||||||
|
Securities borrowed |
1,140,023 |
765,457 |
||||||
|
Accounts receivable, net |
57,853 |
46,518 |
||||||
|
Due from related parties |
734 |
986 |
||||||
|
Advances against customer contracts |
200 |
200 |
||||||
|
Loans receivable, at fair value (includes $131,379 and $295,809 from related parties at June 30, 2021 and December 31, 2020, respectively) |
270,295 |
390,689 |
||||||
|
Prepaid expenses and other assets |
119,400 |
87,262 |
||||||
|
Operating lease right-of-use assets |
60,933 |
48,799 |
||||||
|
Property and equipment, net |
14,447 |
11,685 |
||||||
|
Goodwill |
236,005 |
227,046 |
||||||
|
Other intangible assets, net |
200,304 |
190,745 |
||||||
|
Deferred tax assets, net |
4,080 |
4,098 |
||||||
|
Total assets |
$ |
4,106,727 |
$ |
2,662,730 |
||||
|
|
||||||||
|
Liabilities: |
||||||||
|
Accounts payable |
$ |
6,101 |
$ |
2,722 |
||||
|
Accrued expenses and other liabilities |
220,603 |
168,478 |
||||||
|
Deferred revenue |
68,398 |
68,651 |
||||||
|
Deferred tax liabilities, net |
90,325 |
34,248 |
||||||
|
Due to related parties and partners |
230 |
327 |
||||||
|
Due to clearing brokers |
— |
13,672 |
||||||
|
Securities sold not yet purchased |
272,088 |
10,105 |
||||||
|
Securities loaned |
1,134,359 |
759,810 |
||||||
|
Mandatorily redeemable noncontrolling interests |
4,105 |
4,700 |
||||||
|
Operating lease liabilities |
73,761 |
60,778 |
||||||
|
Notes payable |
357 |
37,967 |
||||||
|
Loan participations sold |
4,444 |
17,316 |
||||||
|
Term loans, net |
257,104 |
74,213 |
||||||
|
Senior notes payable, net |
1,213,105 |
870,783 |
||||||
|
Total liabilities |
3,344,980 |
2,123,770 |
||||||
|
Commitments and contingencies |
||||||||
|
B. Riley Financial, Inc. stockholders’ equity: |
||||||||
|
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 4,275 and 3,971 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively; and liquidation preference of $106,882 and $99,260 as of June 30, 2021 and December 31, 2020, respectively |
— |
— |
||||||
|
Common stock, $0.0001 par value; 100,000,000 shares authorized; 27,580,300 and 25,777,796 issued and outstanding as of June 30, 2021 and December 31, 2020, respectively |
3 |
3 |
||||||
|
Additional paid-in capital |
387,084 |
310,326 |
||||||
|
Retained earnings |
338,260 |
203,080 |
||||||
|
Accumulated other comprehensive loss |
(1,178) |
(823) |
||||||
|
Total B. Riley Financial, Inc. stockholders’ equity |
724,169 |
512,586 |
||||||
|
Noncontrolling interests |
37,578 |
26,374 |
||||||
|
Total equity |
761,747 |
538,960 |
||||||
|
Total liabilities and equity |
$ |
4,106,727 |
$ |
2,662,730 |
||||
|
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|
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|
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|
Revenues: |
|||||||||||||
|
Services and fees |
$ |
266,143 |
$ |
125,595 |
$ |
555,612 |
$ |
284,976 |
|||||
|
Trading income (losses) and fair value adjustments on loans |
32,679 |
114,547 |
299,621 |
(67,895) |
|||||||||
|
Interest income – Loans and securities lending |
25,491 |
24,506 |
62,411 |
46,357 |
|||||||||
|
Sale of goods |
12,457 |
1,820 |
19,285 |
2,824 |
|||||||||
|
Total revenues |
336,770 |
266,468 |
936,929 |
266,262 |
|||||||||
|
Operating expenses: |
|||||||||||||
|
Direct cost of services |
12,094 |
7,985 |
23,416 |
27,937 |
|||||||||
|
Cost of goods sold |
3,626 |
860 |
8,952 |
1,629 |
|||||||||
|
Selling, general and administrative expenses |
199,922 |
106,562 |
391,266 |
194,306 |
|||||||||
|
Impairment of tradenames |
— |
8,500 |
— |
12,500 |
|||||||||
|
Interest expense – Securities lending and loan participations sold |
10,983 |
11,221 |
30,172 |
19,694 |
|||||||||
|
Total operating expenses |
226,625 |
135,128 |
453,806 |
256,066 |
|||||||||
|
Operating income |
110,145 |
131,340 |
483,123 |
10,196 |
|||||||||
|
Other income (expense): |
|||||||||||||
|
Interest income |
56 |
224 |
105 |
470 |
|||||||||
|
Gain on extinguishment of loans |
6,509 |
— |
6,509 |
— |
|||||||||
|
(Loss) income from equity investments |
(852) |
(318) |
23 |
(554) |
|||||||||
|
Interest expense |
(20,856) |
(16,509) |
(40,642) |
(32,163) |
|||||||||
|
Income (loss) before income taxes |
95,002 |
114,737 |
449,118 |
(22,051) |
|||||||||
|
(Provision) benefit for income taxes |
(19,902) |
(32,208) |
(117,420) |
5,331 |
|||||||||
|
Net income (loss) |
75,100 |
82,529 |
331,698 |
(16,720) |
|||||||||
|
Net income (loss) attributable to noncontrolling interests |
(576) |
(1,311) |
1,366 |
(1,895) |
|||||||||
|
Net income (loss) attributable to B. Riley Financial, Inc. |
$ |
75,676 |
$ |
83,840 |
$ |
330,332 |
$ |
(14,825) |
|||||
|
Preferred stock dividends |
1,789 |
1,087 |
3,538 |
2,142 |
|||||||||
|
Net income (loss) available to common shareholders |
$ |
73,887 |
$ |
82,753 |
$ |
326,794 |
$ |
(16,967) |
|||||
|
Basic income (loss) per common share |
$ |
2.70 |
$ |
3.23 |
$ |
12.03 |
$ |
(0.66) |
|||||
|
Diluted income (loss) per common share |
$ |
2.58 |
$ |
3.07 |
$ |
11.39 |
$ |
(0.66) |
|||||
|
Weighted average basic common shares outstanding |
27,344,184 |
25,627,085 |
27,159,257 |
25,827,849 |
|||||||||
|
Weighted average diluted common shares outstanding |
28,668,465 |
26,992,823 |
28,690,444 |
25,827,849 |
|||||||||
|
|
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|
|
||||||||||||
|
|
||||||||||||
|
|
||||||||||||
|
|
||||||||||||
|
|
|
|||||||||||
|
Cash flows from operating activities: |
||||||||||||
|
Net income (loss) |
$ |
331,698 |
$ |
(16,720) |
||||||||
|
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: |
||||||||||||
|
Depreciation and amortization |
12,924 |
9,879 |
||||||||||
|
Provision for doubtful accounts |
755 |
2,081 |
||||||||||
|
Share-based compensation |
14,134 |
9,489 |
||||||||||
|
Fair value adjustments, non-cash |
(10,046) |
21,975 |
||||||||||
|
Non-cash interest and other |
(9,091) |
(6,943) |
||||||||||
|
Effect of foreign currency on operations |
(1,486) |
(73) |
||||||||||
|
(Income) loss from equity investments |
(23) |
554 |
||||||||||
|
Dividends from equity investments |
610 |
797 |
||||||||||
|
Deferred income taxes |
51,242 |
(14,340) |
||||||||||
|
Impairment of intangibles and gain on disposal of fixed assets |
— |
12,550 |
||||||||||
|
Gain on extinguishment of loans |
(6,509) |
— |
||||||||||
|
Loss (gain) on extinguishment of debt |
919 |
(1,556) |
||||||||||
|
Gain on equity investment |
(3,544) |
— |
||||||||||
|
Income allocated for mandatorily redeemable noncontrolling interests |
347 |
397 |
||||||||||
|
Change in operating assets and liabilities: |
||||||||||||
|
Due from clearing brokers |
(424,062) |
(5,271) |
||||||||||
|
Securities and other investments owned |
(316,181) |
20,009 |
||||||||||
|
Securities borrowed |
(374,565) |
27,967 |
||||||||||
|
Accounts receivable and advances against customer contracts |
808 |
27,601 |
||||||||||
|
Prepaid expenses and other assets |
(25,870) |
(19,707) |
||||||||||
|
Accounts payable, accrued expenses and other liabilities |
(22,983) |
738 |
||||||||||
|
Amounts due to/from related parties and partners |
155 |
4,404 |
||||||||||
|
Securities sold, not yet purchased |
261,476 |
(32,017) |
||||||||||
|
Deferred revenue |
(3,158) |
3,896 |
||||||||||
|
Securities loaned |
374,549 |
(31,481) |
||||||||||
|
Net cash (used in) provided by operating activities |
(147,901) |
14,229 |
||||||||||
|
Cash flows from investing activities: |
||||||||||||
|
Purchases of loans receivable |
(87,309) |
(152,228) |
||||||||||
|
Repayments of loans receivable |
95,522 |
74,450 |
||||||||||
|
Sale of loan receivable to related party |
— |
1,800 |
||||||||||
|
Proceeds from loan participations sold |
— |
2,400 |
||||||||||
|
Repayment of loan participations sold |
(10,772) |
(940) |
||||||||||
|
Acquisition of business, net of $34,924 cash acquired |
(390) |
(1,500) |
||||||||||
|
Purchases of property, equipment and other |
(288) |
(851) |
||||||||||
|
Proceeds from sale of property, equipment and intangible assets |
— |
1 |
||||||||||
|
Purchase of equity investments |
(10,485) |
(6,486) |
||||||||||
|
Net cash used in investing activities |
(13,722) |
(83,354) |
||||||||||
|
Cash flows from financing activities: |
||||||||||||
|
Repayment of asset based credit facility |
— |
(37,096) |
||||||||||
|
Repayment of notes payable |
(37,610) |
(357) |
||||||||||
|
Repayment of term loan |
(11,484) |
(9,620) |
||||||||||
|
Proceeds from term loan |
200,000 |
— |
||||||||||
|
Proceeds from issuance of senior notes |
475,698 |
171,078 |
||||||||||
|
Redemption of senior notes |
(128,156) |
(1,829) |
||||||||||
|
Payment of debt issuance costs |
(15,661) |
(2,760) |
||||||||||
|
Payment for contingent consideration |
(411) |
— |
||||||||||
|
Payment of employment taxes on vesting of restricted stock |
(10,370) |
(2,678) |
||||||||||
|
Common dividends paid |
(181,269) |
(17,489) |
||||||||||
|
Preferred dividends paid |
(3,538) |
(2,142) |
||||||||||
|
Repurchase of common stock |
— |
(27,779) |
||||||||||
|
Distribution to noncontrolling interests |
(14,792) |
(2,143) |
||||||||||
|
Contribution from noncontrolling interests |
10,650 |
— |
||||||||||
|
Proceeds from issuance of common stock |
64,713 |
— |
||||||||||
|
Proceeds from issuance of preferred stock |
8,281 |
4,630 |
||||||||||
|
Net cash provided by financing activities |
356,051 |
71,815 |
||||||||||
|
Increase in cash, cash equivalents and restricted cash |
194,428 |
2,690 |
||||||||||
|
Effect of foreign currency on cash, cash equivalents and restricted cash |
(534) |
(705) |
||||||||||
|
Net increase in cash, cash equivalents and restricted cash |
193,894 |
1,985 |
||||||||||
|
Cash, cash equivalents and restricted cash, beginning of period |
104,837 |
104,739 |
||||||||||
|
Cash, cash equivalents and restricted cash, end of period |
$ |
298,731 |
$ |
106,724 |
||||||||
|
Supplemental disclosures: |
||||||||||||
|
Interest paid |
$ |
66,359 |
$ |
45,934 |
||||||||
|
Taxes paid |
$ |
63,987 |
$ |
608 |
||||||||
|
|
|||||||||||||
|
|
|||||||||||||
|
|
|||||||||||||
|
|
|||||||||||||
|
|
|
||||||||||||
|
|
|
||||||||||||
|
|
|
|
|
||||||||||
|
|
|||||||||||||
|
Revenues – Services and fees |
$ |
125,997 |
$ |
60,364 |
$ |
296,976 |
$ |
133,964 |
|||||
|
Trading income (losses) and fair value adjustments on loans |
29,897 |
114,080 |
294,400 |
(67,935) |
|||||||||
|
Interest income – Loans and securities lending |
25,491 |
24,506 |
62,411 |
46,357 |
|||||||||
|
Total revenues |
181,385 |
198,950 |
653,787 |
112,386 |
|||||||||
|
Selling, general and administrative expenses |
(65,473) |
(56,623) |
(151,613) |
(84,924) |
|||||||||
|
Interest expense – Securities lending and loan participations sold |
(10,983) |
(11,221) |
(30,172) |
(19,694) |
|||||||||
|
Depreciation and amortization |
(247) |
(595) |
(1,012) |
(1,191) |
|||||||||
|
Segment income |
104,682 |
130,511 |
470,990 |
6,577 |
|||||||||
|
|
|||||||||||||
|
Revenues – Services and fees |
87,444 |
15,318 |
152,986 |
34,205 |
|||||||||
|
Trading income and fair value adjustments on loans |
2,865 |
467 |
5,221 |
40 |
|||||||||
|
Total revenues |
90,309 |
15,785 |
158,207 |
34,245 |
|||||||||
|
Selling, general and administrative expenses |
(88,702) |
(15,283) |
(150,174) |
(32,831) |
|||||||||
|
Depreciation and amortization |
(2,340) |
(470) |
(4,739) |
(953) |
|||||||||
|
Segment (loss) income |
(733) |
32 |
3,294 |
461 |
|||||||||
|
|
|||||||||||||
|
Revenues – Services and fees |
5,534 |
7,206 |
12,892 |
27,867 |
|||||||||
|
Revenues – Sale of goods |
11,743 |
1,045 |
17,835 |
1,045 |
|||||||||
|
Total revenues |
17,277 |
8,251 |
30,727 |
28,912 |
|||||||||
|
Direct cost of services |
(7,540) |
(3,217) |
(14,120) |
(18,033) |
|||||||||
|
Cost of goods sold |
(3,105) |
(285) |
(7,579) |
(314) |
|||||||||
|
Selling, general and administrative expenses |
(3,077) |
(2,729) |
(4,566) |
(4,255) |
|||||||||
|
Depreciation and amortization |
— |
— |
— |
(1) |
|||||||||
|
Segment income |
3,555 |
2,020 |
4,462 |
6,309 |
|||||||||
|
|
|||||||||||||
|
Revenues – Services and fees |
23,735 |
18,845 |
45,144 |
39,559 |
|||||||||
|
Selling, general and administrative expenses |
(19,471) |
(15,268) |
(37,460) |
(30,997) |
|||||||||
|
Depreciation and amortization |
(89) |
(73) |
(187) |
(140) |
|||||||||
|
Segment income |
4,175 |
3,504 |
7,497 |
8,422 |
|||||||||
|
|
|||||||||||||
|
Revenues – Services and fees |
18,932 |
20,656 |
38,725 |
42,374 |
|||||||||
|
Revenues – Sale of goods |
714 |
775 |
1,450 |
1,779 |
|||||||||
|
Total revenues |
19,646 |
21,431 |
40,175 |
44,153 |
|||||||||
|
Direct cost of services |
(4,554) |
(4,768) |
(9,296) |
(9,904) |
|||||||||
|
Cost of goods sold |
(521) |
(575) |
(1,373) |
(1,315) |
|||||||||
|
Selling, general and administrative expenses |
(4,768) |
(4,049) |
(9,638) |
(9,512) |
|||||||||
|
Depreciation and amortization |
(2,528) |
(2,851) |
(5,062) |
(5,730) |
|||||||||
|
Segment income |
7,275 |
9,188 |
14,806 |
17,692 |
|||||||||
|
|
|||||||||||||
|
Revenues – Services and fees |
4,501 |
3,206 |
8,889 |
7,007 |
|||||||||
|
Trading losses and fair value adjustments on loans |
(83) |
— |
— |
— |
|||||||||
|
Total revenues |
4,418 |
3,206 |
8,889 |
7,007 |
|||||||||
|
Selling, general and administrative expenses |
(690) |
(309) |
(1,366) |
(1,213) |
|||||||||
|
Depreciation and amortization |
(715) |
(715) |
(1,429) |
(1,429) |
|||||||||
|
Impairment of tradenames |
— |
(8,500) |
— |
(12,500) |
|||||||||
|
Segment income (loss) |
3,013 |
(6,318) |
6,094 |
(8,135) |
|||||||||
|
|
|
|
|
|
|||||||||
|
Corporate and other expenses |
(11,822) |
(7,597) |
(24,020) |
(21,130) |
|||||||||
|
Interest income |
56 |
224 |
105 |
470 |
|||||||||
|
Gain on extinguishment of loans |
6,509 |
— |
6,509 |
— |
|||||||||
|
(Loss) income on equity investments |
(852) |
(318) |
23 |
(554) |
|||||||||
|
Interest expense |
(20,856) |
(16,509) |
(40,642) |
(32,163) |
|||||||||
|
Income (loss) before income taxes |
95,002 |
114,737 |
449,118 |
(22,051) |
|||||||||
|
(Provision) benefit for income taxes |
(19,902) |
(32,208) |
(117,420) |
5,331 |
|||||||||
|
Net income (loss) |
75,100 |
82,529 |
331,698 |
(16,720) |
|||||||||
|
Net (loss) income attributable to noncontrolling interests |
(576) |
(1,311) |
1,366 |
(1,895) |
|||||||||
|
Net income (loss) attributable to B. Riley Financial, Inc. |
75,676 |
83,840 |
330,332 |
(14,825) |
|||||||||
|
Preferred stock dividends |
1,789 |
1,087 |
3,538 |
2,142 |
|||||||||
|
Net income (loss) available to common shareholders |
$ |
73,887 |
$ |
82,753 |
$ |
326,794 |
$ |
(16,967) |
|||||
|
|
||||||||||||||
|
|
||||||||||||||
|
|
||||||||||||||
|
|
||||||||||||||
|
|
|
|||||||||||||
|
|
|
|||||||||||||
|
|
|
|
|
|||||||||||
|
Net income (loss) attributable to B. Riley Financial, Inc. |
$ |
75,676 |
$ |
83,840 |
$ |
330,332 |
$ |
(14,825) |
||||||
|
Adjustments: |
||||||||||||||
|
Provision (benefit) for income taxes |
19,902 |
32,208 |
117,420 |
(5,331) |
||||||||||
|
Interest expense |
20,856 |
16,509 |
40,642 |
32,163 |
||||||||||
|
Interest income |
(56) |
(224) |
(105) |
(470) |
||||||||||
|
Share based payments |
8,608 |
4,168 |
14,134 |
9,489 |
||||||||||
|
Depreciation and amortization |
6,165 |
4,923 |
12,924 |
9,879 |
||||||||||
|
Gain on extinguishment of loans |
(6,509) |
— |
(6,509) |
— |
||||||||||
|
Impairment of tradenames |
— |
8,500 |
— |
12,500 |
||||||||||
|
Transactions related costs and other |
245 |
(1,660) |
1,530 |
8,794 |
||||||||||
|
Total EBITDA adjustments |
49,211 |
64,424 |
180,036 |
67,024 |
||||||||||
|
Adjusted EBITDA |
$ |
124,887 |
$ |
148,264 |
510,368 |
52,199 |
||||||||
|
Operating EBITDA Adjustments: |
||||||||||||||
|
Trading (income) losses and fair value adjustments on loans |
(32,679) |
(114,547) |
(299,621) |
67,895 |
||||||||||
|
Other investment related expenses |
(84) |
13,040 |
4,094 |
(2,430) |
||||||||||
|
Total Operating EBITDA Adjustments |
(32,763) |
(101,507) |
(295,527) |
65,465 |
||||||||||
|
Operating Adjusted EBITDA |
$ |
92,124 |
$ |
46,757 |
$ |
214,841 |
$ |
117,664 |
||||||
|
|
||||||||||||
|
|
||||||||||||
|
|
||||||||||||
|
|
||||||||||||
|
|
|
|||||||||||
|
|
|
|
|
|||||||||
|
Net income (loss) attributable to B. Riley Financial, Inc. |
$ |
75,676 |
$ |
83,840 |
$ |
330,332 |
$ |
(14,825) |
||||
|
Adjustments: |
||||||||||||
|
Share based payments |
8,608 |
4,168 |
14,134 |
9,489 |
||||||||
|
Amortization of intangible assets |
5,134 |
4,024 |
11,020 |
8,048 |
||||||||
|
Gain on extinguishment of loans |
(6,509) |
— |
(6,509) |
— |
||||||||
|
Impairment of tradenames |
— |
8,500 |
— |
12,500 |
||||||||
|
Transactions related costs and other |
245 |
(1,660) |
1,530 |
8,794 |
||||||||
|
Income tax effect of adjusting entries |
(1,557) |
(4,172) |
(5,073) |
(10,731) |
||||||||
|
Adjusted net income attributable to B. Riley Financial, Inc. |
$ |
81,597 |
$ |
94,700 |
$ |
345,434 |
$ |
13,275 |
||||
|
Adjusted income per common share: |
||||||||||||
|
Adjusted basic income per share |
$ |
2.98 |
$ |
3.70 |
$ |
12.72 |
$ |
0.51 |
||||
|
Adjusted diluted income per share |
$ |
2.85 |
$ |
3.51 |
$ |
12.04 |
$ |
0.51 |
||||
|
Shares used to calculate adjusted basic net income per share |
27,344,184 |
25,627,085 |
27,159,257 |
25,827,849 |
||||||||
|
Shares used to calculate adjusted diluted net income per share |
28,668,465 |
26,992,823 |
28,690,444 |
25,827,849 |
||||||||
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SOURCE B. Riley Financial
