LOS ANGELES - November 9, 2015 - B. Riley Financial, Inc. (NASDAQ: RILY), a diversified provider of financial and business advisory services, reported financial results for the third quarter ended September 30, 2015.
Third Quarter 2015 Highlights
Third Quarter 2015 Financial Results
Total revenues for the third quarter of 2015 increased 3% to $21.3 million from $20.7 million in the same year-ago period. The improvement was primarily attributable to an increase in revenues from the company's auction and liquidation segment, offset by a decrease in revenues from its capital markets segment.
Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, and amortization of non-cash stock-based compensation) for the third quarter of 2015 totaled $3.1 million compared to $3.7 million in the same year-ago period (see "Use of Non-GAAP Financial Measures," below for further discussion of this non-GAAP term).
Net income for the third quarter of 2015 totaled $1.5 million or $0.09 per diluted share, an improvement from a net loss of $868,000 or $(0.05) per diluted share in the same year-ago period.
At September 30, 2015, the company had $45.9 million of unrestricted cash, $124,000 of restricted cash, and $11.1 million of net investments in securities. Shareholder equity totaled $111.2 million at September 30, 2015.
Declaration of Dividend
On November 9, 2015, the company's board of directors approved a dividend of $0.06 per share, which will be paid on or about December 9, 2015 to stockholders of record on November 24, 2015.
"In many ways, Q3 was our most rewarding quarter since the combination of B. Riley and Great American Group last year," commented Bryant Riley, chairman and CEO of B. Riley Financial. "We undertook several initiatives last year that reduced our fixed operating costs by about $9 million. As a result, we were able to generate more than $3 million in adjusted EBITDA in the third quarter this year, despite a slower environment in our capital markets and retail liquidation divisions." Mr. Riley continued, "Our ability to continue to pay out a portion of our profits in the form of dividends is also gratifying. Including today's announcement of a $0.06 dividend, we will have paid out $0.32 per share this year which is approximately 22% of our September 2015 YTD Adjusted EBITDA."
B. Riley Financial will host an investor conference call today (November 9, 2015) 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
The conference call will be broadcasted live and available for replay via the investor relations section of the company's website at http://ir.brileyfin.com.
A replay of the call will be available after 7:30 p.m. Eastern time through November 16, 2015.
Toll-Free Replay Number: 877-870-5176
International Replay Number: 858-384-5517
Replay ID: 13624323
About B. Riley Financial, Inc.
B. Riley Financial, Inc. (NASDAQ: RILY) provides collaborative financial services and solutions through several subsidiaries, including: B. Riley & Co. LLC, a leading investment bank which provides corporate finance, research, and sales & trading to corporate, institutional and high net worth individual clients; Great American Group, LLC, a leading provider of advisory and valuation services, asset disposition and auction solutions, and commercial lending services; B. Riley Capital Management, LLC, an SEC registered Investment Advisor, which includes B. Riley Asset Management, a provider of investment products to institutional and high net worth investors, and B. Riley Wealth Management (formally MK Capital Advisors), a multi-family office practice and wealth management firm focused on the needs of ultra-high net worth individuals and families; and Great American Capital Partners, a provider of senior secured loans and second lien secured loan facilities to middle market public and private U.S. companies.
B. Riley Financial is headquartered in Los Angeles with offices in major financial markets throughout the United States and Europe. For more information on B. Riley Financial, visit www.brileyfin.com.
This press release may contain forward-looking statements by B. Riley Financial that are not based on historical fact, including, without limitation, statements containing the words "expects," "anticipates," "intends," "plans," "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, as well as statements regarding how management sees opportunities to grow and broaden the firm. 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 our ability to successfully integrate recent 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's filings with the SEC, including, without limitation, the risks described in B. Riley Financial's (f/k/a Great American Group, Inc.) Annual Report on Form 10-K for the year ended December 31, 2014 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 Quarterly Report on Form 10-Q for the quarter ended September 30, 2015. 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 undertakes no duty to update this information.
Note Regarding Use of Non-GAAP Financial Measures
Certain of the information set forth herein, including adjusted EBITDA, pro forma financial information and proforma 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 cash flow, excluding net interest expense, provisions for income taxes, depreciation, amortization 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 and Pro Forma EBITDA Reconciliation" and "Pro Forma Financial Information."
Scott Liolios or Matt Glover
Liolios Group, Inc.
Note: The unaudited Pro forma financial information in the table above summarizes the combined results of operations of the company and B. Riley and Co., LLC and the related impact of the new employment agreements with Bryant Riley, Andrew Gumaer and Harvey Yellen that became effective upon the acquisition of B. Riley and Co., LLC, as though they had occurred as of January 1, 2014. The Pro forma financial information presented includes the effects of adjustments related to the amortization charges from the acquired intangible assets. The Pro forma financial information as presented above is for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of the earlier period presented, nor does it intend to be a projection of future results.