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SAN JOSE, Calif., May 3, 2021 /PRNewswire/ — Sanmina Corporation (“Sanmina” or the “Company”) (NASDAQ: SANM), a leading integrated manufacturing solutions company, today reported financial results for the fiscal second quarter ended April 3, 2021 and outlook for its fiscal third quarter ending July 3, 2021.

“We achieved solid financial results for the second fiscal quarter, despite the challenges associated with supply chain constraints and the typical seasonality. This performance was driven by broad end-market demand, favorable mix and operational execution. I commend our employees for their commitment to deliver on our customers’ expectations,” stated Jure Sola, Chairman and Chief Executive Officer of Sanmina Corporation. 

“Our third quarter outlook reflects strong demand across our customer base while taking into account our current understanding of the supply constraints facing the industry and the COVID-19 pandemic. Our focus on fundamentals, coupled with the quality of our customer relationships, gives us confidence in the long-term financial prospects of our company.” 

Third Quarter Fiscal 2021 Outlook

The following outlook is for the third fiscal quarter ending July 3, 2021.  These statements are forward-looking and actual results may differ materially. 

• Revenue between $1.675 billion to $1.775 billion
• GAAP diluted earnings per share between $0.71 to $0.81
• Non-GAAP diluted earnings per share between $0.84 to $0.94

The statements above concerning our expectations for customer demand during the third quarter and financial outlook constitute forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Actual results could differ materially from those projected in these statements as a result of a number of factors, mostly notably the ongoing impacts of the COVID-19 pandemic, which have reduced demand from our customers, caused supply chain interruptions and created health risks for our employees and which could result in restrictions on where we can build products and our ability to fully staff our plants. Other factors that could cause our results to differ from our outlook include adverse changes to the key markets we target; significant uncertainties that can cause our future sales and net income to be variable; reliance on a small number of customers for a substantial portion of our sales; risks arising from our international operations; and the other factors set forth in the Company’s annual and quarterly reports filed with the Securities Exchange Commission (“SEC”).

The Company is under no obligation to (and expressly disclaims any such obligation to) update or alter any of the forward-looking statements made in this earnings release, the conference call or the Investor Relations section of our website whether as a result of new information, future events or otherwise, unless otherwise required by law.

Company Conference Call Information

Sanmina will hold a conference call to review its financial results for the second quarter and outlook for the third quarter on Monday, May 3, 2021 at 5:00 p.m. ET (2:00 p.m. PT).  The access numbers are: domestic 866-891-4420 and international 201-383-2868. The conference will also be webcast live over the Internet.  You can log on to the live webcast at www.sanmina.com.  Additional information in the form of a slide presentation is available on Sanmina’s website at www.sanmina.com.  A replay of the conference call will be available for 48-hours.  The access numbers are: domestic 855-859-2056 and international 404-537-3406, access code is 4858475.

About Sanmina

Sanmina Corporation, a Fortune 500 company, is a leading integrated manufacturing solutions provider serving the fastest growing segments of the global Electronics Manufacturing Services (EMS) market. Recognized as a technology leader, Sanmina provides end-to-end manufacturing solutions, delivering superior quality and support to Original Equipment Manufacturers (OEMs) primarily in the communications networks, cloud solutions, industrial, defense, medical and automotive. Sanmina has facilities strategically located in key regions throughout the world. More information about the Company is available at www.sanmina.com.

 

 

 

 

 

Schedule 1

The statements above and financial information provided in this earnings release include non-GAAP measures of operating income, operating margin, net income, diluted earnings per share and pre-tax return on invested capital (ROIC).  Management excludes from these measures stock-based compensation, restructuring, acquisition and integration expenses, impairment charges, amortization charges and other unusual or infrequent items, as adjusted for taxes, as more fully described below.

Management excludes these items principally because such charges or benefits are not directly related to the Company’s ongoing core business operations. We use such non-GAAP measures in order to (1) make more meaningful period-to-period comparisons of the Company’s operations, both internally and externally, (2) guide management in assessing the performance of the business, internally allocating resources and making decisions in furtherance of Company’s strategic plan, (3) provide investors with a better understanding of how management plans and measures the business and (4) provide investors with a better understanding of our ongoing, core business. The material limitations to management’s approach include the fact that the charges, benefits and expenses excluded are nonetheless charges, benefits and expenses required to be recognized under GAAP and, in some cases, consume cash which reduces the Company’s liquidity. Management compensates for these limitations primarily by reviewing GAAP results to obtain a complete picture of the Company’s performance and by including a reconciliation of non-GAAP results to GAAP results in its earnings releases.

Additional information regarding the economic substance of each exclusion, management’s use of the resultant non-GAAP measures, the material limitations of management’s approach and management’s methods for compensating for such limitations is provided below.

Stock-based Compensation Expense, which consists of non-cash charges for the estimated fair value of equity awards granted to employees and directors, is excluded in order to permit more meaningful period-to-period comparisons of the Company’s results since the Company grants different amounts and value of equity awards each quarter. In addition, given the fact that competitors grant different amounts and types of equity awards and may use different valuation assumptions, excluding stock-based compensation permits more accurate comparisons of the Company’s core results with those of its competitors.

Restructuring, Acquisition and Integration Expenses, which consist of severance, lease termination costs, exit costs and other charges primarily related to closing and consolidating manufacturing facilities and those associated with the acquisition and integration of acquired businesses, are excluded because such charges (1) can be driven by the timing of acquisitions and exit activities which are difficult to predict, (2) are not directly related to ongoing business results and (3) do not reflect expected future operating expenses. In addition, given the fact that the Company’s competitors complete acquisitions and adopt restructuring plans at different times and in different amounts than the Company, excluding these charges or benefits permits more accurate comparisons of the Company’s core results with those of its competitors. Items excluded by the Company may be different from those excluded by the Company’s competitors and restructuring and integration expenses include both cash and non-cash expenses. Cash expenses reduce the Company’s liquidity. Therefore, management also reviews GAAP results including these amounts.

Impairment Charges, which consist of non-cash charges, are excluded because such charges are non-recurring and do not reduce the Company’s liquidity. In addition, given the fact that the Company’s competitors may record impairment charges at different times, excluding these charges permits more accurate comparisons of the Company’s core results with those of its competitors.

Amortization Charges, which consist of non-cash charges impacted by the timing and magnitude of acquisitions of businesses or assets, are also excluded because such charges do not reduce the Company’s liquidity. In addition, such charges can be driven by the timing of acquisitions, which is difficult to predict. Excluding these charges permits more accurate comparisons of the Company’s core results with those of its competitors because the Company’s competitors complete acquisitions at different times and for different amounts than the Company.    

Other Unusual or Infrequent Items, such as  charges or benefits associated with distressed customers, expenses, charges and recoveries relating to certain legal matters, gains and losses on sales of assets, deferred tax adjustments and discrete tax items, are excluded because such items are typically non-recurring, difficult to predict or not directly related to the Company’s ongoing or core operations and are therefore not considered by management in assessing the current operating performance of the Company and forecasting earnings trends. However, items excluded by the Company may be different from those excluded by the Company’s competitors. In addition, these items may include both cash and non-cash expenses. Cash expenses reduce the Company’s liquidity. Management compensates for these limitations by reviewing GAAP results including these amounts.

Adjustments for Taxes, which consist of the tax effects of the various adjustments that we exclude from our non-GAAP measures, and adjustments related to deferred tax and discrete tax items.  Including these adjustments permits more accurate comparisons of the Company’s core results with those of its competitors. We determine the tax adjustments based upon the various applicable effective tax rates.  In those jurisdictions in which we do not expect to realize a tax cost or benefit (due to a history of operating losses or other factors), a reduced tax rate is applied.

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SOURCE Sanmina Corporation

WAKEFIELD, Mass., May 3, 2021 /PRNewswire/ — Curaleaf Holdings, Inc. (CSE: CURA / OTCQX: CURLF) (“Curaleaf” or the “Company”), a leading international provider of consumer products in cannabis, today announced that Executive Chairman Boris Jordan and Chief Executive Officer Joe Bayern will be participating in the following investor community conferences and events during May 2021.

• A.G.P.’s Spring Virtual Consumer Cannabis Conference
  
  May 4, 2021

  Joe Bayern, Curaleaf CEO, will be participating in a panel titled, “Northeast Opportunities:  Evaluating New Adult-use Markets of New York & New Jersey” hosted by Alliance Global Partners Equity Analyst Aaron Grey CFA, CPA. (12:00pm – 1:00pm) Curaleaf management will also be hosting investor one-on-one and group meetings.

• Canaccord’s Cannabis Virtual Conference
  
  May 11, 2021

  Boris Jordan, Curaleaf Executive Chairman, will be participating in a fireside chat hosted by Canaccord Genuity Corp. Equity Analyst Matt Bottomley, CPA, CA, CBV. (9:00am – 9:25am) Curaleaf management will also be hosting investor one-on-one and group meetings.

• Prohibition Partners LIVE
  
  May 20, 2021

  Boris Jordan, Curaleaf Executive Chairman, will be participating in a fireside discussion titled, “Curaleaf Holdings Across the Pond: Why Europe, Why Now?” with Financial Times Reporter, Patricia Nilsson, with an in depth look at Curaleaf’s exciting steps into the European Market. (9:30am – 10:00am)

For more information regarding upcoming Curaleaf financial community conference and event participation as well as details to access the webcasts please visit Curaleaf’s IR website at https://ir.curaleaf.com/events.  

About Curaleaf Holdings, Inc.
Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) (“Curaleaf”) is a leading international provider of consumer products in cannabis with a mission to improve lives by providing clarity around cannabis and confidence around consumption. As a high-growth cannabis company known for quality, expertise and reliability, the Company and its brands, including Curaleaf and Select, provide industry-leading service, product selection and accessibility across the medical and adult-use markets. In the United States, Curaleaf currently operates in 23 states with 106 dispensaries, 23 cultivation sites, more than 30 processing sites, and employs over 4,800 team members. Curaleaf International is the largest vertically integrated independent cannabis company in Europe with a unique supply and distribution network throughout the European market, bringing together pioneering science and research with leading cultivation, extraction and production capabilities. Curaleaf is listed on the Canadian Securities Exchange under the symbol CURA and trades on the OTCQX market under the symbol CURLF. For more information, please visit https://ir.curaleaf.com/.

INVESTOR CONTACT
Curaleaf Holdings, Inc. 
Carlos Madrazo, SVP, Investor Relations and Capital Markets
[email protected]

MEDIA CONTACT
Curaleaf Holdings, Inc.
Tracy Brady, VP Corporate Communications
[email protected]

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SOURCE Curaleaf Holdings, Inc.

PITTSBURGH, May 3, 2021 /PRNewswire/ — Kennametal Inc. (NYSE: KMT) (the “Company”) today reported results for its fiscal 2021 third quarter ended March 31, 2021, with earnings per diluted share (EPS) of $0.26, compared with $0.03 in the prior year quarter, and adjusted EPS of $0.32, compared with $0.46 in the prior year quarter.

“I am encouraged by our results, which reflect solid execution of our initiatives as well as improving sales and free operating cash flow. Sales increased 10 percent sequentially, exceeding expectations, with improvement across all end-markets and regions and a return to growth on a year-over-year basis in Transportation, General Engineering and Asia Pacific. Although near-term uncertainties remain due to customer supply chain constraints and the effects of ongoing COVID-19 restrictions, we are optimistic that the worst of this crisis is behind us, and the momentum of the recovery will continue,” said Christopher Rossi, President and CEO.

Rossi added: “Adjusted operating margins increased 330 basis points sequentially due to stronger sales and improved manufacturing productivity. This margin improvement was achieved despite the continued lifting of temporary cost control actions. We expect further margin improvement in the fourth quarter through disciplined execution of our commercial excellence and simplification/modernization initiatives along with improving market conditions. We remain confident in our ability to deliver strong operating leverage and free operating cash flow as markets continue to recover and throughout the cycle.”

Simplification/Modernization Update

The Company has achieved annualized savings since inception to date from simplification/modernization of $164 million and is on track to achieve the $180 million savings target set at Investor Day in December 2017. Total incremental benefits in the quarter were approximately $18 million, which includes incremental restructuring savings of approximately $13 million as noted in the table below.

Fiscal 2021 Third Quarter Key Developments

Sales of $485 million increased 10 percent sequentially from the second quarter. Compared to the prior year’s third quarter, sales were relatively flat from $483 million, reflecting a favorable currency exchange effect of 2 percent, offset by organic sales decline and unfavorable business day effects of 1 percent, respectively.

Operating income was $40 million, or 8.2 percent of sales, compared to $38 million, or 7.8 percent of sales, in the prior year quarter. The increase in operating income was due primarily to approximately $18 million of incremental simplification/modernization benefits, no goodwill and other intangible asset impairment charges in the current year quarter and $2 million of restructuring and related charges compared to $6 million in the prior year quarter, largely offset by an increase in variable compensation, unfavorable geographic and product mix, and unfavorable labor and fixed cost absorption due to lower volumes. Adjusted operating income was $42 million, or 8.6 percent margin, compared to $59 million, or 12.2 percent margin, in the prior year quarter.

The reported effective tax rate (ETR) for the quarter was 8.0 percent (benefit on income) and the adjusted ETR was 20.6 percent (provision on income), compared to reported ETR of 93.1 percent and adjusted ETR of 28.5 percent in the prior year quarter, both provisions on income. The year-over-year change in the reported ETR is due primarily to changes in projected pretax income in both periods, discrete tax benefits recorded in the current year quarter related to the early debt extinguishment and a provision to return adjustment, as well as certain events that did not repeat in the current year such as goodwill and other intangible asset impairments. The decrease in the adjusted ETR is due primarily to a discrete tax benefit related to a provision to return adjustment and lower U.S. taxes associated with the base erosion anti-abuse tax (BEAT) and global intangible low-taxed income (GILTI) tax.

Reported EPS in the current quarter includes restructuring and related charges of $0.02, the effects of the early debt extinguishment of $0.08 and differences in annual projected tax rates of $0.08, partially offset by a discrete tax benefit of $0.12. Reported EPS in the prior year quarter includes restructuring and related charges of $0.06, goodwill and other intangible asset impairment charges of $0.17 and differences in annual projected tax rates of $0.20.

During the third quarter, the Company issued $300 million of 2.80 percent Senior Unsecured Notes with a maturity date of March 1, 2031 and subsequently used the net proceeds from the issuance, plus cash on hand, for the early extinguishment of the $300 million of 3.875 percent Senior Unsecured Notes due February 2022. 

Year-to-date net cash flow provided by operating activities was $139 million compared to $146 million in the prior year period. The change in net cash flow provided by operating activities was driven primarily by working capital adjustments. Year-to-date free operating cash flow (FOCF) was $46 million compared to negative $57 million in the prior year period. The improvement in FOCF was driven primarily by lower capital expenditures of $112 million, partially offset by working capital adjustments.

Outlook and Fourth Quarter Assumptions

While the economic recovery is certainly underway, overall global market conditions remain somewhat unpredictable due to customer supply chain challenges, notably the semiconductor shortage issue in Transportation, and uncertainty from COVID-19 related restrictions, primarily in EMEA and parts of Asia Pacific.

From an outlook perspective for the fourth quarter, the Company’s expectations are as follows:

• Sales are expected to be up mid-single digits sequentially
• Adjusted operating margin is expected to modestly improve sequentially
• Capital spending is expected to be approximately $120 million for FY21

The Company will provide more details regarding its fourth quarter assumptions on its conference call.

Segment Results

Metal Cutting sales of $308 million increased 9 percent sequentially from the second quarter outpacing the typical seasonal trend. Compared to the prior year’s third quarter, sales increased 2 percent from $303 million year-over-year, driven by a favorable currency exchange effect of 3 percent, partially offset by an unfavorable business day effect of 1 percent. Operating income was $23 million, or 7.4 percent of sales, compared to $17 million, or 5.5 percent of sales, in the prior year quarter. The increase in operating income was due primarily to approximately $11 million of incremental simplification/modernization benefits, no goodwill and other intangible asset impairment charges in the current year quarter and $2 million of restructuring and related charges compared to $4 million in the prior year quarter, partially offset by an increase in variable compensation, unfavorable product mix and unfavorable labor and fixed cost absorption due to lower volumes. Adjusted operating income was $25 million, or 8.2 percent margin, compared to $36 million, or 12.0 percent margin, in the prior year quarter.

Infrastructure sales of $177 million increased 12 percent sequentially from the second quarter, but decreased 2 percent from $180 million year-over-year, driven by an organic sales decline of 3 percent and an unfavorable business day effect of 1 percent, partially offset by a favorable currency exchange effect of 2 percent. Operating income was $18 million, or 10.4 percent of sales, compared to $22 million, or 12.2 percent of sales, in the prior year quarter. The decrease in operating income was primarily driven by an increase in variable compensation, organic sales decline and unfavorable labor and fixed cost absorption due to lower volumes, partially offset by approximately $4 million of incremental simplification/modernization benefits. Adjusted operating income was $18 million, or 10.1 percent margin, compared to $23 million, or 13.0 percent margin, in the prior year quarter.

Dividend Declared

Kennametal also announced that its Board of Directors declared a quarterly cash dividend of $0.20 per share. The dividend is payable on May 25, 2021 to shareholders of record as of the close of business on May 11, 2021.

The Company will host a conference call to discuss its third quarter fiscal 2021 results on Tuesday, May 4, 2021 at 8:00 a.m. Eastern Time. The conference call will be broadcast via real-time audio on the Kennametal website at www.kennametal.com. Once on the homepage, select “About Us”, “Investor Relations” and then “Events.”

This earnings release contains non-GAAP financial measures. Reconciliations and descriptions of all non-GAAP financial measures are set forth in the tables that follow.

Certain statements in this release may be forward-looking in nature, or “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are statements that do not relate strictly to historical or current facts. For example, statements about Kennametal’s outlook for earnings, sales volumes, cash flow, capital expenditures and effective tax rate for fiscal year 2021 and our expectations regarding future growth and financial performance are forward-looking statements. Any forward-looking statements are based on current knowledge, expectations and estimates that involve inherent risks and uncertainties. Should one or more of these risks or uncertainties materialize, or should the assumptions underlying the forward-looking statements prove incorrect, our actual results could vary materially from our current expectations. There are a number of factors that could cause our actual results to differ from those indicated in the forward-looking statements. They include: the duration of the COVID-19 pandemic and its impacts on our business operations, financial results and financial position and on the industries in which we operate and the global economy generally; other downturns in the business cycle or the economy; our ability to achieve all anticipated benefits of restructuring, simplification and modernization initiatives; risks related to our foreign operations and international markets, such as currency exchange rates, different regulatory environments, trade barriers, exchange controls, and social and political instability; changes in the regulatory environment in which we operate, including environmental, health and safety regulations; potential for future goodwill and other intangible asset impairment charges; our ability to protect and defend our intellectual property; continuity of information technology infrastructure; competition; our ability to retain our management and employees; demands on management resources; availability and cost of the raw materials we use to manufacture our products; product liability claims; integrating acquisitions and achieving the expected savings and synergies; global or regional catastrophic events; demand for and market acceptance of our products; business divestitures; labor relations; and implementation of environmental remediation matters. Many of these risks and other risks are more fully described in our latest annual report on Form 10-K and our other periodic filings with the Securities and Exchange Commission. We can give no assurance that any goal or plan set forth in forward-looking statements can be achieved and readers are cautioned not to place undue reliance on such statements, which speak only as of the date made. We undertake no obligation to release publicly any revisions to forward-looking statements as a result of future events or developments.

About Kennametal

With over 80 years as an industrial technology leader, Kennametal Inc. delivers productivity to customers through materials science, tooling and wear-resistant solutions. Customers across aerospace, earthworks, energy, general engineering and transportation turn to Kennametal to help them manufacture with precision and efficiency. Every day approximately 9,000 employees are helping customers in more than 60 countries stay competitive. Kennametal generated nearly $1.9 billion in revenues in fiscal 2020. Learn more at www.kennametal.com. Follow @Kennametal: Twitter, Instagram, Facebook, LinkedIn and YouTube.

 

 

NON-GAAP RECONCILIATIONS (UNAUDITED)

In addition to reported results under generally accepted accounting principles in the United States of America (GAAP), the following financial highlight tables include, where appropriate, a reconciliation of adjusted results including: operating income and margin; ETR; net income attributable to Kennametal; diluted EPS; Metal Cutting operating income and margin; Infrastructure operating income and margin; FOCF; and consolidated and segment organic sales growth (decline) (all of which are non-GAAP financial measures), to the most directly comparable GAAP financial measures. Adjustments for the three months ended March 31, 2021 include restructuring and related charges, effects of early debt extinguishment, discrete tax benefits and differences in projected annual tax rates. Adjustments for the three months ended March 31, 2020 include restructuring and related charges, goodwill and other intangible asset impairment charges and differences in projected annual tax rates. For those adjustments that are presented ‘net of tax’, the tax effect of the adjustment can be derived by calculating the difference between the pre-tax and the post-tax adjustments presented. The tax effect on adjustments is calculated by preparing an overall tax calculation including the adjustments and then a tax calculation excluding the adjustments. The difference between these calculations results in the tax impact of the adjustments.

Management believes that presentation of these non-GAAP financial measures provides useful information about the results of operations of the Company for the current and past periods. Management believes that investors should have available the same information that management uses to assess operating performance, determine compensation and assess the capital structure of the Company. These non-GAAP financial measures should not be considered in isolation or as a substitute for the most comparable GAAP financial measures. Investors are cautioned that non-GAAP financial measures used by management may not be comparable to non-GAAP financial measures used by other companies. Reconciliations and descriptions of all non-GAAP financial measures are set forth in the disclosures below.

 

Free Operating Cash Flow (FOCF)

FOCF is a non-GAAP financial measure and is defined by the Company as net cash flow provided by operating activities (which is the most directly comparable GAAP financial measure) less capital expenditures plus proceeds from disposals of fixed assets. Management considers FOCF to be an important indicator of the Company’s cash generating capability because it better represents cash generated from operations that can be used for dividends, debt repayment, strategic initiatives (such as acquisitions) and other investing and financing activities.

Organic Sales Growth

Organic sales growth (decline) is a non-GAAP financial measure of sales growth (decline) (which is the most directly comparable GAAP measure) excluding the effects of acquisitions, divestitures, business days and foreign currency exchange from year-over-year comparisons. Management believes this measure provides investors with a supplemental understanding of underlying sales trends by providing sales growth (decline) on a consistent basis. Management reports organic sales growth (decline) at the consolidated and segment levels.

 

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SOURCE Kennametal Inc.

LOS ANGELES, May 3, 2021 /PRNewswire/ — B. Riley Financial, Inc. (NASDAQ: RILY), a diversified financial services company, today announced its financial results for the first quarter ended March 31, 2021.

First Quarter 2021 Highlights

• Net income available to common shareholders of $252.9 million, or $8.81 per diluted share
• Total quarterly revenues of $600.2 million, total adjusted EBITDA ⁽¹⁾ of $385.5 million
• Operating revenues ⁽²⁾ of $333.2 million vs. $182.2 million for Q1 2020
• Operating adjusted EBITDA ⁽³⁾ of $122.7 million vs. $70.9 million for Q1 2020
• Investment gains ⁽⁴⁾ of $266.9 million as of March 31, 2021
• Completed acquisition of National Holdings, enhancing wealth management and capital markets
• Declared total quarterly dividend of $3.00 per common share

Bryant Riley, Chairman and Co-Chief Executive Officer of B. Riley Financial, said: “Our first quarter performance again demonstrates the combined platform’s strength and earnings power, with this period driven by particularly exceptional results from our investment banking group. Our results were enhanced by investment gains of approximately $267 million, coupled with a year-over-year increase of over 80 percent and 70 percent, respectively, for quarterly operating revenues and operating EBITDA. These results reflected the upside from capital markets in addition to steady and recurring contributions from the balance of our businesses.”

Tom Kelleher, Co-Chief Executive Officer of B. Riley Financial, added: “During the quarter, we completed the acquisition of National Holdings and welcomed nearly 700 registered representatives to B. Riley. With $31 billion in combined assets as of March 31, the addition of National to wealth management creates meaningful scale and distribution for our overall platform.”

“We also added a new risk and compliance practice that is in high demand by our customers and enhances our advisory services. As we continue to build on and deepen our core capabilities in capital markets, restructuring and advisory, we are seeing more opportunities and increased collaboration across our businesses,” Kelleher stated. “With the diversity of our platform, we believe B. Riley is exceptionally well-positioned to support our clients and partners through both up and downcycles.”

Riley added, “Our dividend of $3.00 per share approximates our operating free cash flow generated during the quarter and amounts to over $350 million in total capital distributed to our shareholders through dividends and share repurchases since 2017. With a quarter-end balance sheet supported by over $650 million in cash and investments net of debt, we feel a meaningful capital return policy is consistent with our shareholder commitment while allowing us to continue to aggressively invest in our business. We believe in the strength of our people and our platform to continue to deliver for all of our stakeholders in the years ahead.”

Declaration of Common Stock Dividend
The Company’s Board of Directors has approved a total quarterly dividend of $3.00 per share which includes the regular $0.50 dividend and a special dividend of $2.50 per share. The dividend is payable on or about May 28, 2021 to common stockholders of record as of May 17, 2021.

First Quarter 2021 Financial Summary
For the three months ended March 31, 2021, B. Riley Financial reported net income available to common shareholders of $252.9 million, or $8.81 per diluted share.

Total quarterly revenues of $600.2 million and total adjusted EBITDA ⁽¹⁾ of $385.5 million represented a significant increase versus the prior-year quarter.

First quarter operating revenues ⁽²⁾ of $333.2 million represented an 83% increase from $182.2 million for the prior-year period. Operating adjusted EBITDA ⁽³⁾ increased by 73% to $122.7 million from $70.9 million for the prior-year period.

Operating results were enhanced by significant investment gains ⁽⁴⁾ of $266.9 million for the first quarter. Investment gains are primarily unrealized mark-to-market valuations on strategic investments held by the Company. These investments comprise certain private and public securities and loans which are often enhanced through utilization of the Company’s strategic advisory, operational and financial services.

As of March 31, 2021, cash and investments ⁽⁶⁾ totaled approximately $1.9 billion including cash and cash equivalents of $237.6 million. Total cash and investments, ⁽⁶⁾ net of debt, was $653.8 million at quarter-end.

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 First Quarter 2021 Financial Supplement located on the Company’s investor relations website.

First Quarter 2021 Segment Summary

For the first quarter of 2021:

• Excluding investment gains, Capital Markets operating revenues increased 118% to $207.9 million from $95.5 million from the prior-year period. Segment operating income ⁽⁷⁾ totaled $106.0 million. Investment banking experienced an exceptionally strong quarter driven by a number of large transactions.
• Wealth Management revenues of $67.9 million reflected contributions from the acquisition of National Holdings completed on February 25, 2021. Combined client assets under management totaled approximately $31 billion as of March 31, 2021.
• Auction and Liquidation segment results included revenues of $13.5 million earned from retail store closing projects completed during the quarter. 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 $21.4 million compared to revenues of $20.7 million for the prior-year period. Segment income was $3.3 million. Results were primarily driven by bankruptcy restructuring and appraisal engagements.
• Principal Investments companies, magicJack and United Online, contributed revenues of $20.5 million and segment income of $7.5 million. magicJack and United Online continued to perform above expectations, contributing recurring cash flow to the Company.
• Brands generated revenues of $4.5 million and segment income of $3.1 million related to the licensing of brand trademarks.

Segment Reclassification
The Company has realigned its segment reporting structure as a result of the National acquisition. Under the new structure, results for wealth management are now reported as a standalone segment. Wealth management was previously reported in the Capital Markets segment. In conjunction with the new reporting structure, the Company has recast its segment presentation for all periods presented.

Conference Call Details
B. Riley Financial will host a conference call to discuss its first quarter 2021 financial results at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) today, Monday May 3, 2021. Investors may access the live broadcast and archived recording via the Company’s investor relations website.

About B. Riley Financial
B. Riley Financial is a diversified financial services company that 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. Certain registered affiliates originate and underwrite senior secured loans for asset-rich companies. B. Riley also makes proprietary investments in companies and assets with attractive return profiles. For the latest news and developments, follow us on LinkedIn and Twitter @BRileyFinancial. For more information, visit www.brileyfin.com.

B. Riley refers to B. Riley Financial and/or one or more of its subsidiaries or affiliates. For more information about our affiliated companies, visit www.brileyfin.com/platform.

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

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, 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, 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 the Company’s anticipated results of operations for 2021, as well as 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 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 March 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.

 

 

 

 

 

 

 

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SOURCE B. Riley Financial