B. Riley Financial
Mar 9, 2017
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B. Riley Financial Reports Record Financial Results for Fourth Quarter and Fiscal Year 2016

LOS ANGELES, March 9, 2017 /PRNewswire/ -- B. Riley Financial, Inc. (NASDAQ: RILY), a diversified provider of financial and business advisory services, reported results for the fourth quarter and fiscal year ended December 31, 2016.

Fourth Quarter 2016 Highlights

  • Total revenues were $93.2 million
  • Net income totaled $12.4 million or $0.64 per diluted share
  • Adjusted EBITDA totaled $25.1 million
  • Adjusted net income totaled $14.8 million or $0.76 per diluted share

Fourth Quarter 2016 Financial Results

Total revenues for the fourth quarter of 2016 were $93.2 million compared to $19.8 million in the same year-ago period. The significant increase was primarily due to higher revenues from the company's Auction and Liquidation and Capital Markets segments, as well as the addition of the Principal Investments - United Online segment, which was acquired on July 1, 2016.

  • Capital Markets Segment: Revenue was $16.5 million, a significant improvement from $4.8 million in the same year-ago period. The $11.7 million increase in revenue was primarily due to higher investment banking fees, trading income, and commissions earned. Segment income increased to $6.2 million from a loss of $2.3 million in the same year-ago period.
  • Auction and Liquidation Segment: Revenue was $51.9 million compared to $6.8 million in the same year-ago period. The increase in revenue was primarily due to a $25.8 million increase in services and fees and $19.3 million increase from sale of goods. Segment income increased to $24.2 million from $1.4 million in the same year-ago period.
  • Valuation and Appraisal Segment: Revenue was $8.9 million compared to $8.1 million in the same year-ago period. The increase of $0.7 million was primarily due to an increase in revenues related to appraisal engagements. Segment income totaled $2.8 million compared to $1.8 million in the same year-ago period.
  • Principal Investments - United Online Segment: Revenues from services and fees, as well as the sale of products totaled $15.9 million primarily from services and fees for internet access and related subscription services. Segment income totaled $5.8 million.

Net income for the fourth quarter of 2016 totaled $12.4 million or $0.64 per diluted share, compared to a net loss of $1.0 million or $(0.06) per diluted share in the same year-ago period.

Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, transaction and restructuring expenses, insurance settlement recoveries, and share based compensation) for the fourth quarter of 2016 totaled $25.1 million, compared to a net loss of $0.2 million in the same year-ago period. 

Adjusted net income (excluding the impact of share-based payments, amortization of acquired intangible assets, restructuring costs, insurance settlement recovery and transaction costs, net of related tax impact thereof) for the fourth quarter of 2016 totaled $14.8 million or $0.76 per diluted share, compared to a loss of $0.3 million or $(0.02) per diluted share in the same year-ago period (see note regarding "Use of Non-GAAP Financial Measures," below for further discussion of these non-GAAP term). 

At December 31, 2016, the company had $112.1 million of unrestricted cash and $15.7 million of net investments in securities. Total shareholder equity at December 31, 2016 was $149.3 million.

Full Year 2016 Highlights

  • Total revenues were $190.4 million
  • Net income totaled $21.5 million or $1.17 per diluted share
  • Adjusted EBITDA totaled $48.9 million
  • Adjusted net income totaled $27.7 million or $1.51 per diluted share

Full Year 2016 Financial Results
Total revenues for the full year 2016 were up 69% to $190.4 million from $112.5 million in 2015. The significant increase was primarily due to higher revenues from the company's Capital Markets and Auction and Liquidation segments, as well as the addition of the Principal Investments - United Online segment, which was acquired on July 1, 2016.

  • Capital Markets Segment: Revenues were $39.3 million compared to $35.2 million in 2015. The increase of $4.1 million in revenue was primarily due to higher trading income and commissions earned. Segment income increased to $6.1 million from $4.4 million in 2015.
  • Auction and Liquidation Segment: Revenues were $87.7 million compared to $46.2 million in 2015. The increase in revenue was primarily due to a $26.3 million increase in services and fees and $15.3 million increase from sale of goods. Segment income increased to $41.1 million from $19.3 million in 2015.
  • Valuation and Appraisal Segment: Revenues were $31.7 million compared to $31.1 million in 2015. The increase of $0.6 million was primarily due to an increase in revenues related to appraisal engagements. Segment income totaled $8.9 million compared to $8.3 million in 2015.
  • Principal Investments - United Online Segment: Revenues from services and fees, as well as the sale of products totaled $31.5 million, including $31.3 million in revenues from internet access and related subscription services. Segment income totaled $9.2 million.

Net income for the full year 2016 totaled $21.5 million or $1.17 per diluted share, compared to $11.8 million or $0.73 per diluted share in 2015.

Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, transaction and restructuring expenses, insurance settlement recoveries, and share based compensation) for the full year of 2016 totaled $48.9 million, compared to $23.2 million in 2015. 

Adjusted net income (excluding the impact of share-based payments, amortization of acquired intangible assets, restructuring costs, insurance settlement recoveries and transaction costs, net of related tax impact thereof) for the full year of 2016 totaled $27.7 million or $1.51 per diluted share, compared to $13.4 million or $0.83 per diluted share in 2015 (see note regarding "Use of Non-GAAP Financial Measures," below for further discussion of these non-GAAP term).  

Declaration of Dividend
As announced on February 20, 2017, the company's board of directors approved a regular quarterly dividend of $0.08 per share and a one-time special dividend of $0.18 per share, both of which will be paid on or about March 13, 2017 to stockholders of record on March 6, 2017.

Management Commentary
"As we highlighted in our preliminary release last month, our Q4 results were strong across the board, resulting in a record quarter for B. Riley Financial," said company chairman and CEO, Bryant Riley. "This performance was driven by continued strength in our retail asset disposition business, substantial growth in our Capital Markets segment, along with meaningful cash flow contribution from United Online.

"Overall, our results for the fourth quarter and full year of 2016 demonstrate the earnings power of our diversified business model. We have structured this model to provide us with multiple sources of recurring revenue and cash flow, as well as opportunities to generate attractive returns, especially from our retail liquidation and investment banking businesses. In addition, because we have predictable businesses in our platform, we're often able to pay a regular quarterly dividend, as well as a variable dividend based on the performance of our more episodic businesses.

"From an operational standpoint, 2016 marked a pivotal year in our development of a stronger, more diversified financial services platform. This was highlighted by several strategic initiatives and corporate actions, including the launch of a corporate restructuring practice and our acquisition of United Online.

"This year, we took a significant step to enhance our business when we announced our agreement to acquire FBR & Co. When completed, this transaction will bring together FBR's and B. Riley's investment banking, sales and trading and research businesses, creating a powerful combination for our collective client base, and solidifying us into a leader in business services, financial advisory and investment banking."

Conference Call
B. Riley Financial will host a conference call today (March 9, 2017) at 4:30 p.m. Eastern time (1:30 p.m. Pacific time). The company's Chairman and CEO, Bryant Riley, President Tom Kelleher, and CFO and COO, Phillip Ahn, will host the conference call, followed by a question and answer period.

Please call the conference telephone number 10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Liolios Group at 949-574-3860.

Toll-Free Number: 877-407-0789
International Number: 201-689-8562

About B. Riley Financial, Inc.
B. Riley Financial, Inc. (NASDAQ: RILY) is a publicly traded, diversified financial services company which takes a collaborative approach to the capital raising and financial advisory needs of public and private companies and high net worth individuals. The company also makes proprietary investments in other businesses where B. Riley Financial, Inc. is uniquely positioned to leverage its expertise and assets in order to maximize value. The Company operates through several wholly-owned subsidiaries, including B. Riley & Co., LLC (www.brileyco.com), Great American Group, LLC (www.greatamerican.com), Great American Capital Partners (www.gacapitalpartners.com) and B. Riley Capital Management, LLC (which includes B. Riley Asset Management and B. Riley Wealth Management, (www.brileywealth.com). Since the acquisition of United Online, Inc. (www.untd.com) in July 2016, B. Riley Financial, Inc. also provides internet access services under the NetZero and Juno brands. 

Forward-Looking Statements
This press release may contain forward-looking statements by B. Riley Financial, Inc. that are not based on historical fact, including, without limitation, statements containing the words "expects," "anticipates," "intends," "plans," "projects," "believes," "seeks," "estimates" and similar expressions and statements. Such forward looking statements include, but are not limited to, express or implied statements regarding future financial performance and future dividends, the effects of our business model, the effects of the United Online acquisition, the anticipated benefits of B. Riley Financial, Inc.'s pending acquisition of FBR & Co. and related actions, expectations regarding future transactions and the financial impact, size and consistency of returns and timing thereof, as well as statements regarding the effect of investments in our business segments. Because these forward-looking statements involve known and unknown risks and uncertainties, there are important factors that could cause actual results, events or developments to differ materially from those expressed or implied by these forward-looking statements. Such factors include risks associated with large engagements in our Auction and Liquidation segment; the possibility that the pending acquisition of FBR & Co. does not close when expected or at all because required regulatory, stockholder or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all; lower FBR & Co. earnings and/or higher FBR & Co. transaction and other expenses; our ability to achieve expected cost savings or other benefits with respect to the acquisition of United Online or the pending acquisition of FBR & Co., in each case within expected time frames or at all; our ability to consummate anticipated transactions and the expected financial impact thereof, in each case within the expected timeframes or at all; our ability to successfully integrate recent and pending acquisitions; loss of key personnel; our ability to manage growth; the potential loss of financial institution clients; the timing of completion of significant engagements; and those risks described from time to time in B. Riley Financial, Inc.'s 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, 2015 under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations." Additional information will also be set forth in our Annual Report on Form 10-K for the year ended December 31, 2016. 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.

No Offer or Solicitation
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

Additional Information about the Pending Acquisition of FBR & Co. and Where to Find It
Stockholders are urged to carefully review and consider each of B. Riley Financial, Inc.'s and FBR & Co.'s public filings with the SEC, including but not limited to their Annual Reports on Form 10-K, their proxy statements, their Current Reports on Form 8-K and their Quarterly Reports on Form 10-Q. In connection with B. Riley Financial, Inc.'s pending acquisition of FBR & Co., B. Riley Financial, Inc. will file with the SEC a Registration Statement on Form S-4 that will include a Joint Proxy Statement of B. Riley Financial, Inc. and FBR & Co. and a Prospectus of B. Riley Financial, Inc. (the "Joint Proxy/Prospectus"), as well as other relevant documents concerning the transaction. Stockholders of B. Riley Financial, Inc. and FBR & Co. are urged to carefully read the Registration Statement and the Joint Proxy/Prospectus regarding the pending acquisition of FBR & Co. in their entirety when they become available and any other relevant documents filed with the SEC, as well as any amendments or supplements to those documents, because they will contain important information. A definitive Joint Proxy/Prospectus will be sent to the stockholders of B. Riley Financial, Inc. and FBR & Co. The Joint Proxy/Prospectus and other relevant materials (when they become available) filed with the SEC may be obtained free of charge at the SEC's Website at http://www.sec.gov. FBR & Co. AND B. RILEY FINANCIAL, Inc. STOCKHOLDERS ARE URGED TO READ THE JOINT PROXY/PROSPECTUS AND THE OTHER RELEVANT MATERIALS BEFORE VOTING ON THE TRANSACTION.

Investors will also be able to obtain these documents, free of charge, from FBR & Co. by accessing FBR & Co.'s website at www.fbr.com under the tab "Investor Relations" or from B. Riley Financial, Inc. at www.brileyfin.com under the tab "Investor Relations." Copies can also be obtained, free of charge, by directing a written request to B. Riley Financial, Inc., Attention: Corporate Secretary, 21255 Burbank Boulevard, Suite 400, Woodland Hills, California 91367 or to FBR & Co., Attention: Corporate Secretary, 1300 North Seventeenth Street, Arlington, Virginia 22209.

Participants in Solicitation
B. Riley Financial, Inc. and FBR & Co. and their directors and executive officers and certain other persons may be deemed to be participants in the solicitation of proxies from the stockholders of FBR & Co. or B. Riley Financial, Inc. in connection with B. Riley Financial, Inc.'s pending acquisition of FBR & Co. Information about the directors and executive officers of B. Riley Financial, Inc. and their ownership of B. Riley Financial, Inc. common stock is set forth in the proxy statement for B. Riley Financial, Inc.'s 2016 annual meeting of stockholders, as filed with the SEC on a Schedule 14A on April 19, 2016. Information about the directors and executive officers of FBR & Co. and their ownership of FBR & Co. common stock is set forth in the proxy statement for FBR & Co.'s 2016 annual meeting of shareholders, as filed with the SEC on a Schedule 14A on May 9, 2016. Additional information regarding the interests of those participants and other persons who may be deemed participants in the pending acquisition of FBR & Co. may be obtained by reading the Joint Proxy/Prospectus regarding the transaction when it becomes available. Free copies of this document may be obtained as described in the preceding paragraph.

Note Regarding Use of Non-GAAP Financial Measures
Certain of the information set forth herein, including adjusted EBITDA and adjusted Net Income, may be considered non-GAAP financial measures. B. Riley Financial, Inc. 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 cash flow, excluding net interest expense, provisions for income taxes, depreciation, amortization, transaction expenses and stock-based compensation 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. The non-GAAP measures are described above and are reconciled to the corresponding GAAP measure in the unaudited condensed consolidated financial statements portion of this release under the headings "Adjusted EBITDA Reconciliation" and "Adjusted Net Income Reconciliation."

Investor Contact:
Scott Liolios or Matt Glover
Liolios Group, Inc.
949-574-3860
RILY@liolios.com

 

B. RILEY FINANCIAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except par value)









December 31,


December 31,









2016


2015









(Unaudited)



Assets





Current assets:








Cash and cash equivalents

$

112,105

$

30,012


Restricted cash



3,294


51


Securities owned, at fair value


16,579


25,543


Accounts receivable, net


18,989


9,472


Due from related parties


3,009


409


Advances against customer contracts


427


5,013


Goods held for sale or auction



37


Prepaid expenses and other current assets


3,578


2,415



Total current assets


157,981


72,952

Property and equipment, net


5,785


592

Goodwill





48,903


34,528

Other intangible assets, net


41,166


4,768

Deferred income taxes


8,619


18,992

Other assets




2,164


588



Total assets

$

264,618

$

132,420

Liabilities and Equity





Current liabilities:







Accounts payable

$

2,703

$

1,123


Accrued payroll and related expenses


15,738


7,178


Accrued value added tax payable


6,371


1,785


Income Taxes Payable


9,311


740


Accrued expenses and other liabilities


18,885


5,392


Deferred revenue


4,130


346


Due to related parties and partners


10,037


166


Securities sold not yet purchased


846


713


Acquisition consideration payable


10,381



Mandatorily redeemable noncontrolling interests


4,019


2,994


Revolving credit facilities



272


Contingent consideration- current portion


1,242


1,241



Total current liabilities


83,663


21,950

Other liabilities




2,863


Senior notes payable


27,700


Contingent consideration, net of current portion



1,150



Total liabilities


114,226


23,100

Commitments and contingencies





B. Riley Financial, Inc. stockholders' equity:






Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued




Common stock, $0.0001 par value; 40,000,000 shares authorized; 19,140,342







and 16,448,119 issued and outstanding as of December 31, 2016 and December 31,







2015, respectively


2


2


Additional paid-in capital


141,170


116,799


Retained earnings (deficit)


9,887


(6,305)


Accumulated other comprehensive loss


(1,712)


(1,058)



Total B. Riley Financial, Inc. stockholders' equity


149,347


109,438

Noncontrolling interests


1,045


(118)



Total equity


150,392


109,320



Total liabilities and equity

$

264,618

$

132,420












 

B. RILEY FINANCIAL, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(Unaudited)

(Dollars in thousands, except share data)

























Three Months Ended
December 31,



Year Ended
December 31,









2016


2015



2016


2015

















Revenues:













Services and fees

$

73,730

$

19,753


$

164,235

$

101,929


Sale of goods and products


19,448


8



26,116


10,596


     Total revenues


93,178


19,761



190,351


112,525

Operating expenses:











Direct cost of services


15,773


8,519



40,857


29,049


Cost of goods sold


12,362


1



14,755


3,072


Selling, general and administrative expenses


33,283


12,567



82,127


58,322


Restructuring costs


302




3,887



     Total operating expenses


61,720


21,087



141,626


90,443


     Operating income


31,458


(1,326)



48,725


22,082

Other income (expense):











Interest income


286


7



318


17


Interest expense


(598)


(99)



(1,996)


(834)


     Income before income taxes


31,146


(1,418)



47,047


21,265

Provision for income taxes


(8,137)


372



(14,321)


(7,688)


     Net income


23,009


(1,046)



32,726


13,577

Net (loss) income attributable to noncontrolling interests

10,569


(42)



11,200


1,772


     Net income attributable to B. Riley Financial, Inc.

$

12,440

$

(1,004)


$

21,526

$

11,805

















Basic income per share 

$

0.65

$

(0.06)


$

1.19

$

0.73

Diluted income per share 

$

0.64

$

(0.06)


$

1.17

$

0.73

































Weighted average basic shares outstanding


19,004,548


16,283,677



18,106,621


16,221,040

Weighted average diluted shares outstanding


19,511,292


16,283,677



18,391,852


16,265,915

 

 

B. RILEY FINANCIAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

(Dollars in thousands)









Year ended December 31,









2016


2015

Cash flows from operating activities:






Net income


$

32,726

$

13,577


Adjustments to reconcile net income to net cash







provided by operating activities:








Depreciation and amortization


4,306


848




Provision for doubtful accounts


820


718




Share based compensation


2,768


2,043




Impairment of goods held for sale or auction



33




Non-cash interest


136


163




Effect of foreign currency on operations


973


(375)




Loss on disposal of assets



7




Deferred income taxes


3,549


6,609




Income allocated and fair value adjustment for mandatorily redeemable








noncontrolling interests


3,032


2,207




Change in operating assets and liabilities:









Accounts receivable and advances against customer contracts


(1,957)


11,540





Securities owned


8,964


(7,588)





Goods held for sale or auction


37


20





Prepaid expenses and other assets


3,662


(1,100)





Accounts payable, accrued payroll and related expenses,









accrued value added tax payable and other accrued expenses


23,330


3,943





Amounts due to (from) related parties and partners


(2,766)


(622)





Securities sold not yet purchased


133


(33)





Deferred revenue


884


346





Auction and liquidation proceeds payable


(317)


(665)





     Net cash provided by operating activities


80,280


31,671

Cash flows from investing activities:






Acquisition of businesses, net of cash acquired


(33,430)


(2,451)


Purchases of property and equipment


(729)


(239)


Proceeds from sale of property and equipment and domain names


96


4


(Increase) decrease in restricted cash


(2,809)


7,604





Net (used in) provided by investing activities


(36,872)


4,918

Cash flows from financing activities:






Proceeds from (repayments of) revolving line of credit


(272)


216


Proceeds from asset based credit facility


56,255



Repayment of asset based credit facility


(56,255)


(18,506)


Proceeds from note payable - related party



4,500


Repayment of note payable - related party



(4,500)


Proceeds from participating note payable


61,400



Repayment of participating note payable and contingent consideration


(62,650)



Proceeds from issuance of senior notes


27,664



Proceeds from issuance of common stock


22,759



Payment of employment taxes on vesting of restricted stock


(1,156)


(499)


Dividends paid


(5,334)


(5,219)


Distributions to noncontrolling interests


(2,007)


(4,042)





Net cash provided by (used in) financing activities


40,404


(28,050)





Effect of foreign currency on cash


(1,719)


(127)





Net increase in cash and cash equivalents


82,093


8,412

Cash and cash equivalents, beginning of year


30,012


21,600

Cash and cash equivalents, end of year

$

112,105

$

30,012












Supplemental disclosures:






Interest paid


$

376

$

579


Income taxes paid


685


1,688























 

 

B. RILEY FINANCIAL, INC. AND SUBSIDIARIES

Condensed Segment Financial Information

(Unaudited)

(Dollars in thousands)




















Three Months Ended


Year Ended







December 31,


December 31,







2016


2015


2016


2015

Capital markets reportable segment:









Revenues - Services and fees


$    16,536


$      4,840


$      39,335


$    35,183


Selling, general, and administrative expenses

(10,160)


(6,995)


(32,695)


(30,229)


Depreciation and amortization


(143)


(135)


(549)


(519)


Segment income (loss)


6,233


(2,290)


6,091


4,435

Auction and Liquidation reportable segment:









Revenues - Services and fees


32,533


6,772


61,891


35,633


Revenues - Sale of goods


19,350


8


25,855


10,596


    Total revenues



51,883


6,780


87,746


46,229


Direct cost of services


(7,917)


(4,847)


(17,787)


(15,489)


Cost of goods sold


(12,277)


(1)


(14,502)


(3,072)


Selling, general, and administrative expenses

(7,572)


(445)


(14,331)


(8,170)


Depreciation and amortization


77


(44)


(26)


(191)


Segment income



24,194


1,443


41,100


19,307

Valuation and Appraisal reportable segment:









Revenues - Services and fees


8,884


8,141


31,749


31,113


Direct cost of services


(3,696)


(3,672)


(13,983)


(13,560)


Selling, general, and administrative expenses

(2,399)


(2,667)


(8,778)


(9,101)


Depreciation and amortization


(35)


(33)


(107)


(137)


Segment income



2,754


1,769


8,881


8,315

Principal Investments - United Online reportable segment:









Revenues - Services and fees


15,777


-


31,260


-


Revenues - Sale of products


98


-


261


-


    Total revenues



15,875


-


31,521


-


Direct cost of services


(4,160)


-


(9,087)


-


Cost of goods sold


(85)


-


(253)


-


Selling, general, and administrative expenses

(3,846)


-


(5,974)


-


Depreciation and amortization


(1,705)


-


(3,518)


-


Restructuring costs


(287)


-


(3,474)


-


Segment income



5,792


-


9,215


-














Consolidated operating income from reportable









segments



38,973


922


65,287


32,057

Corporate and other expenses (including restructuring costs

(7,515)


(2,248)


(16,562)


(9,975)


of $413 for the year ended December 31, 2016)





















Interest income



286


7


318


17

Interest expense



(598)


(99)


(1,996)


(834)















Income before income taxes


31,146


(1,418)


47,047


21,265

Provision for income taxes


(8,137)


372


(14,321)


(7,688)















Net income



23,009


(1,046)


32,726


13,577

Net (loss) income attributable to noncontrolling interests

10,569


(42)


11,200


1,772















Net income attributable to B. Riley Financial, Inc.

$    12,440


$     (1,004)


$      21,526


$    11,805














 

 

B. RILEY FINANCIAL, INC. AND SUBSIDIARIES

ADJUSTED EBITDA RECONCILIATION

(Unaudited)

(Dollars in thousands)



























Three Months Ended



Year Ended










December 31,



December 31,










2016


2015



2016


2015

Adjusted EBITDA reconciliation:




























Net income (loss) as reported


$

12,440

$

(1,004)


$

21,526

$

11,805


















Adjustments:














Provision (benefit) for income taxes



8,137


(372)



14,321


7,688


Interest expense



598


99



1,996


834


Interest income




(286)


(7)



(318)


(17)


Depreciation and amortization



1,925


214



4,306


848


Share based payments



1,736


851



3,567


2,043


Transaction Related costs



279




1,236



Restructuring Costs



302




3,887



Insurance Settlement Recovery






(1,618)




















Total EBITDA adjustments



12,691


785



27,377


11,396


















Adjusted EBITDA


$

25,131

$

(219)


$

48,903

$

23,201


















 

 

B. RILEY FINANCIAL, INC. AND SUBSIDIARIES

ADJUSTED NET INCOME RECONCILIATION

(Unaudited)

(Dollars in thousands, except share data)

























Three Months Ended
December 31,



Year Ended
December 31,









2016


2015



2016


2015

















Net income attributable to B. Riley Financial, Inc.

$

12,440

$

(1,004)


$

21,526

$

11,805

















Adjustments





























Share based payments


1,736


851



3,567


2,043


Amortization of acquired intangible assets


1,566


112



3,254


431


Restructuring costs  


302




3,887



Insurance settlement recovery





(1,618)



Transactions related costs


279




1,236










16,323


(41)



31,852


14,279


















Income tax effect of adjusting entries 1


(1,535)


(260)



(4,145)


(844)

Adjusted net income attributable to B. Riley Financial, Inc.


14,788


(301)



27,707


13,435

















Adjusted income per common share:











Adjusted basic income per share 

$

0.78

$

(0.02)


$

1.53

$

0.83


Adjusted diluted income per share 

$

0.76

$

(0.02)


$

1.51

$

0.83

















Shares used to calculate adjusted basic net income per share


19,004,548


16,283,677



18,106,621


16,221,040

Shares used to calculate adjusted diluted net income per share


19,511,292


16,283,677



18,391,852


16,265,915

















 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/b-riley-financial-reports-record-financial-results-for-fourth-quarter-and-fiscal-year-2016-300421455.html

SOURCE B. Riley Financial

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