News
News
LOS ANGELES, Oct. 30, 2019 /PRNewswire/ -- B. Riley Financial, Inc. (NASDAQ:RILY) (the "Company" or "B. Riley"), a diversified provider of business advisory and financial services which operates through several wholly-owned subsidiaries, today announced financial results for the third quarter ended September 30, 2019.
Third Quarter 2019 Highlights
- Total revenues of $180.1 million
- Net income of $34.3 million or $1.21 per diluted share
- Adjusted EBITDA of $70.3 million
- Adjusted net income of $40.0 million or $1.42 per diluted share
"We are extremely pleased to report record results in our third quarter earnings. These results speak to the strength of our individual businesses, combined with the synergies and opportunities being created throughout B. Riley Financial. The value created by our combined businesses continues to exceed our expectations, and we believe our quarterly and year-to-date results demonstrate the earnings power of our company. Over the last five years, we have transitioned from a traditional investment banking and brokerage business into a diversified platform of companies which provide both recurring and episodic revenues. We have utilized the broad capabilities of our enhanced platform to create investment opportunities for ourselves and our clients, while at the same time expanding our service revenues organically and through acquisitions," said Bryant Riley, Chairman and Co-Chief Executive Officer of B. Riley Financial. "As a strategic matter, we use our balance sheet in situations where we can source off market, proprietary investment opportunities in partnership with our operating businesses. This strategy has created a tremendous number of investment opportunities, often combined with meaningful fee revenue, which have added to our short-term profits as well as our recurring revenues. We are mindful that a balance between steady revenues and episodic opportunities is critical, and today's announcement about the formation of our brand investment platform is a continuation of our efforts to grow recurring revenues."
Third Quarter 2019 Financial Summary
For the three-month period ending September 30, 2019, total revenues increased to $180.1 million compared to $99.7 million in revenues for the third quarter of 2018. Strong performance from the Company's Capital Markets and Auction and Liquidation segments contributed to record results for the quarter. Revenues have increased across each of the Company's segments over the respective same year-ago period for the third consecutive quarter. Through the first three quarters of 2019, the Company generated total revenues of $486.9 million.
- Capital Markets Segment: Revenues increased to $134.1 million from $76.3 million for the same year-ago period. Segment income increased to $52.4 million from $11.0 million for the same year-ago period.
- Auction and Liquidation Segment: Revenues increased to $11.3 million from $2.5 million for the same year-ago period. Segment income increased to $6.0 million from $0.3 million for the same year-ago period.
- Valuation and Appraisal Segment: Revenues increased to $10.8 million from $9.4 million for the same year-ago period. Segment income totaled $3.5 million compared to $2.9 million for the same year-ago period.
- Principal Investments Segment: Revenues increased to $23.9 million compared to $11.4 million for the same year-ago period. Segment income increased to $8.7 million compared to $4.1 million for the same year-ago period.
Net income attributable to B. Riley Financial increased to $34.3 million or $1.21 per diluted share for the third quarter of 2019 compared to $2.8 million or $0.10 per diluted share for the same year-ago period. Net income increased to $64.5 million or $2.37 per diluted share for the nine months ending September 30, 2019.
Adjusted EBITDA increased to $70.3 million for the third quarter of 2019 compared to $21.0 million for the same year-ago period; and increased to $157.6 million through the first nine months of 2019. Adjusted EBITDA includes earnings before interest, taxes, depreciation, amortization, restructuring costs, share-based payments, and transaction related and other costs. (See "Note Regarding Use of Non-GAAP Financial Measures" below for further discussion of this non-GAAP term.)
Adjusted net income increased to $40.0 million or $1.42 per diluted share compared to $6.4 million or $0.24 per diluted share for the same year-ago period. Through the first three quarters of 2019, adjusted net income increased to $84.6 million or $3.11 per diluted share. Adjusted net income excludes the impact of share-based payments, amortization of intangible assets, restructuring costs, transaction related and other costs, and tax impact of aforementioned adjustments. (See "Note Regarding Use of Non-GAAP Financial Measures" below for further discussion of this non-GAAP term.)
As of September 30, 2019, the Company had a total cash and investment balance of $844.6 million, including approximately $81 million in equity investments and deposits included in prepaid expenses and other assets. Net of $773.9 million of total debt, the Company had a net cash and investment balance of $70.7 million at the end of the third quarter.
Total B. Riley Financial stockholders' equity increased to $298.9 million as of September 30, 2019.
Declaration of Dividend
The Company's Board of Directors has approved a special dividend of $0.475 per share in addition to the regular quarterly dividend of $0.175 per share. The total quarterly cash dividend of $0.65 per share will be paid on or about November 26, 2019 to stockholders of record as of November 14, 2019. Upon payment, the Company will have distributed a combined total of $1.49 per share in dividends on its common stock to its shareholders, year-to-date.
Share Repurchase Program
The Board has also approved the repurchase of up to $50 million of the Company's outstanding shares of common stock during the year ending October 31, 2020. The share repurchases may be effected on the open market at prevailing market prices from time to time as market conditions warrant, or in privately negotiated transactions. All purchases will be implemented in accordance with the company's securities trading policy and applicable requirements of Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended, or other legally permissible ways in accordance with applicable rules and regulations.
Conference Call
Bryant Riley, Chairman and Co-CEO; Tom Kelleher, Co-CEO; and Phillip Ahn, CFO and COO, will host a conference call today at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss the Company's financial and operational results, followed by a question and answer period.
Please call the conference line 10 minutes prior to the start time and an operator will register your name and organization. The live broadcast and archive will be available on the Company's investor relations website.
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Q3 2019 Earnings Call Details |
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Date: |
Wednesday, October 30, 2019 |
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Time: |
4:30 p.m. Eastern time (1:30 p.m. Pacific time) |
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Toll-Free: |
1-877-451-6152 |
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International: |
1-201-389-0879 |
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Replay Dial-In (expires on Wednesday November 6, 2019) |
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Toll-Free: |
1-844-512-2921 |
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International: |
1-412-317-6671 |
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Replay Pin: |
13695614 |
For more information, visit ir.brileyfin.com.
About B. Riley Financial
B. Riley Financial provides collaborative financial services tailored to fit the capital raising and business advisory needs of public and private companies and high-net-worth individuals. B. Riley operates through several wholly-owned subsidiaries which offer complementary end-to-end capabilities spanning investment banking and institutional brokerage, private wealth and investment management, corporate advisory, restructuring, due diligence, forensic accounting and litigation support, appraisal and valuation, and auction and liquidation services. Certain registered affiliates of B. Riley originate and underwrite senior secured loans for asset-rich companies. The Company also makes proprietary investments in companies and assets with attractive return profiles.
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 2019, expectations regarding the size and consistency of returns, expectations regarding market dynamics, as well as our expectations regarding our business strategies and the expected growth of our business segments. Other factors that could adversely affect our operating results and cash flows include (without limitation) those risks described from time to time in B. Riley Financial's periodic filings with the SEC, including, without limitation, the risks described in B. Riley Financial's Annual Report on Form 10-K for the year ended December 31, 2018 under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations." Additional information will be set forth in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2019. 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 the Company undertakes no duty to update this information.
Note Regarding Use of Non-GAAP Financial Measures
Certain of the information set forth herein, including adjusted net income and 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 or benefit from income taxes, depreciation, amortization, fair value adjustment, transaction and other expenses, restructuring costs, 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.
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B. RILEY FINANCIAL, INC. AND SUBSIDIARIES |
|||||||||||
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Consolidated Balance Sheets |
|||||||||||
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(Dollars in thousands, except par value) |
|||||||||||
|
September 30, |
December 31, |
||||||||||
|
2019 |
2018 |
||||||||||
|
(Unaudited) |
|||||||||||
|
Assets |
|||||||||||
|
Assets: |
|||||||||||
|
Cash and cash equivalents |
$ |
170,587 |
$ |
179,440 |
|||||||
|
Restricted cash |
471 |
838 |
|||||||||
|
Due from clearing brokers |
27,791 |
37,738 |
|||||||||
|
Securities and other investments owned, at fair value |
326,616 |
273,577 |
|||||||||
|
Securities borrowed |
720,207 |
931,346 |
|||||||||
|
Accounts receivable, net |
47,419 |
42,123 |
|||||||||
|
Due from related parties |
6,689 |
1,729 |
|||||||||
|
Loans receivable |
295,898 |
38,794 |
|||||||||
|
Prepaid expenses and other assets |
112,309 |
79,477 |
|||||||||
|
Operating lease right-of-use assets |
49,642 |
— |
|||||||||
|
Property and equipment, net |
13,171 |
15,523 |
|||||||||
|
Goodwill |
220,562 |
223,368 |
|||||||||
|
Other intangible assets, net |
79,488 |
91,358 |
|||||||||
|
Deferred income taxes |
36,041 |
42,399 |
|||||||||
|
Total assets |
$ |
2,106,891 |
$ |
1,957,710 |
|||||||
|
Liabilities and Equity |
|||||||||||
|
Liabilities: |
|||||||||||
|
Accounts payable |
$ |
6,239 |
$ |
5,646 |
|||||||
|
Accrued expenses and other liabilities |
115,062 |
108,662 |
|||||||||
|
Deferred revenue |
68,385 |
69,066 |
|||||||||
|
Due to related parties and partners |
2,814 |
2,428 |
|||||||||
|
Securities sold not yet purchased |
29,092 |
37,623 |
|||||||||
|
Securities loaned |
714,947 |
930,522 |
|||||||||
|
Mandatorily redeemable noncontrolling interests |
4,395 |
4,633 |
|||||||||
|
Operating lease liabilities |
63,817 |
— |
|||||||||
|
Notes payable |
1,193 |
1,550 |
|||||||||
|
Loan participations sold |
28,872 |
— |
|||||||||
|
Term loan |
71,393 |
79,166 |
|||||||||
|
Senior notes payable |
701,278 |
459,754 |
|||||||||
|
Total liabilities |
1,807,487 |
1,699,050 |
|||||||||
|
Commitments and contingencies |
|||||||||||
|
B. Riley Financial, Inc. stockholders' equity: |
|||||||||||
|
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued |
— |
— |
|||||||||
|
and outstanding as of September 30, 2019 and December 31, 2018, respectively. |
|||||||||||
|
Common stock, $0.0001 par value; 100,000,000 shares authorized; 26,921,500 and 26,603,355 |
3 |
2 |
|||||||||
|
issued and outstanding as of September 30, 2019 and December 31, 2018, respectively. |
|||||||||||
|
Additional paid-in capital |
259,237 |
258,638 |
|||||||||
|
Retained earnings |
41,957 |
1,579 |
|||||||||
|
Accumulated other comprehensive loss |
(2,345) |
(2,161) |
|||||||||
|
Total B. Riley Financial, Inc. stockholders' equity |
298,852 |
258,058 |
|||||||||
|
Noncontrolling interests |
552 |
602 |
|||||||||
|
Total equity |
299,404 |
258,660 |
|||||||||
|
Total liabilities and equity |
$ |
2,106,891 |
$ |
1,957,710 |
|||||||
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B. RILEY FINANCIAL, INC. AND SUBSIDIARIES |
|||||||||||||||||
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Consolidated Statements of Income |
|||||||||||||||||
|
(Unaudited) |
|||||||||||||||||
|
(Dollars in thousands, except share data) |
|||||||||||||||||
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Three Months Ended |
Nine Months Ended |
||||||||||||||||
|
September 30, |
September 30, |
||||||||||||||||
|
2019 |
2018 |
2019 |
2018 |
||||||||||||||
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Revenues: |
|||||||||||||||||
|
Services and fees |
$ |
153,379 |
89,824 |
$ |
428,705 |
295,416 |
|||||||||||
|
Interest income - Loans and securities lending |
25,766 |
9,785 |
54,147 |
25,406 |
|||||||||||||
|
Sale of goods |
918 |
72 |
4,023 |
138 |
|||||||||||||
|
Total revenues |
180,063 |
99,681 |
486,875 |
320,960 |
|||||||||||||
|
Operating expenses: |
|||||||||||||||||
|
Direct cost of services |
12,441 |
8,156 |
55,210 |
33,733 |
|||||||||||||
|
Cost of goods sold |
911 |
52 |
3,835 |
142 |
|||||||||||||
|
Selling, general and administrative expenses |
96,587 |
71,782 |
274,468 |
216,603 |
|||||||||||||
|
Restructuring charge |
— |
428 |
1,699 |
2,247 |
|||||||||||||
|
Interest expense - Securities lending and loan participations sold |
10,273 |
6,425 |
22,579 |
16,317 |
|||||||||||||
|
Total operating expenses |
120,212 |
86,843 |
357,791 |
269,042 |
|||||||||||||
|
Operating income |
59,851 |
12,838 |
129,084 |
51,918 |
|||||||||||||
|
Other income (expense): |
|||||||||||||||||
|
Interest income |
361 |
442 |
1,329 |
736 |
|||||||||||||
|
Income (loss) from equity investments |
1,113 |
828 |
(4,049) |
5,049 |
|||||||||||||
|
Interest expense |
(12,772) |
(9,340) |
(35,130) |
(23,926) |
|||||||||||||
|
Income before income taxes |
48,553 |
4,768 |
91,234 |
33,777 |
|||||||||||||
|
Provision for income taxes |
(14,409) |
(2,046) |
(26,802) |
(8,412) |
|||||||||||||
|
Net income |
34,144 |
2,722 |
64,432 |
25,365 |
|||||||||||||
|
Net (loss) income attributable to noncontrolling interests |
(158) |
(92) |
(50) |
1,051 |
|||||||||||||
|
Net income attributable to B. Riley Financial, Inc. |
$ |
34,302 |
$ |
2,814 |
$ |
64,482 |
$ |
24,314 |
|||||||||
|
Basic income per share |
$ |
1.29 |
$ |
0.11 |
$ |
2.45 |
$ |
0.94 |
|||||||||
|
Diluted income per share |
$ |
1.21 |
$ |
0.10 |
$ |
2.37 |
$ |
0.91 |
|||||||||
|
Weighted average basic shares outstanding |
26,556,223 |
25,968,997 |
26,351,839 |
25,856,339 |
|||||||||||||
|
Weighted average diluted shares outstanding |
28,233,423 |
26,854,261 |
27,251,837 |
26,776,133 |
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B. RILEY FINANCIAL, INC. AND SUBSIDIARIES |
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Consolidated Statements of Cash Flows |
|||||||||||
|
(Unaudited) |
|||||||||||
|
(Dollars in thousands) |
|||||||||||
|
Nine Months Ended September 30, |
|||||||||||
|
2019 |
2018 |
||||||||||
|
Cash flows from operating activities: |
|||||||||||
|
Net income |
$ |
64,432 |
$ |
25,365 |
|||||||
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
|||||||||||
|
Depreciation and amortization |
14,217 |
9,768 |
|||||||||
|
Provision for doubtful accounts |
1,646 |
840 |
|||||||||
|
Share-based compensation |
10,276 |
8,650 |
|||||||||
|
Non-cash interest and other |
(14,941) |
1,384 |
|||||||||
|
Effect of foreign currency on operations |
8 |
(352) |
|||||||||
|
Loss (income) from equity investments |
4,049 |
(5,049) |
|||||||||
|
Deferred income taxes |
6,358 |
7 |
|||||||||
|
Impairment of leaseholds and intangibles, lease loss accrual and gain on disposal of fixed assets |
(327) |
1,718 |
|||||||||
|
Income allocated and fair value adjustment for mandatorily redeemable noncontrolling interests |
857 |
847 |
|||||||||
|
Change in operating assets and liabilities: |
|||||||||||
|
Due from clearing brokers |
9,947 |
(23,412) |
|||||||||
|
Securities and other investments owned |
(45,465) |
(77,161) |
|||||||||
|
Securities borrowed |
211,139 |
(235,206) |
|||||||||
|
Accounts receivable and advances against customer contracts |
(8,645) |
(35,982) |
|||||||||
|
Prepaid expenses and other assets |
(9,619) |
(19,418) |
|||||||||
|
Accounts payable, accrued payroll and related expenses, accrued expenses and other liabilities |
31,473 |
10,111 |
|||||||||
|
Amounts due to/from related parties and partners |
(4,574) |
(4,487) |
|||||||||
|
Securities sold, not yet purchased |
(8,531) |
31,381 |
|||||||||
|
Deferred revenue |
(502) |
64 |
|||||||||
|
Securities loaned |
(215,575) |
232,037 |
|||||||||
|
Net cash provided by (used in) operating activities |
46,223 |
(78,895) |
|||||||||
|
Cash flows from investing activities: |
|||||||||||
|
Purchases of loans receivable |
(350,695) |
(35,111) |
|||||||||
|
Acquisition of other businesses |
— |
(4,000) |
|||||||||
|
Repayments of loans receivable |
98,742 |
— |
|||||||||
|
Loan participations sold |
31,806 |
— |
|||||||||
|
Repayment of loan participations sold |
(3,175) |
— |
|||||||||
|
Purchases of property, equipment and intangible assets |
(2,885) |
(2,314) |
|||||||||
|
Proceeds from sale of property, equipment and intangible assets |
504 |
37 |
|||||||||
|
Equity investments |
(33,391) |
(6,856) |
|||||||||
|
Proceeds from sale of division of magicJack |
6,196 |
— |
|||||||||
|
Dividends from equity investments |
1,454 |
1,695 |
|||||||||
|
Net cash used in investing activities |
(251,444) |
(46,549) |
|||||||||
|
Cash flows from financing activities: |
|||||||||||
|
Proceeds from asset based credit facility |
— |
300,000 |
|||||||||
|
Repayment of asset based credit facility |
— |
(300,000) |
|||||||||
|
Proceeds from notes payable |
— |
51,020 |
|||||||||
|
Repayment of notes payable |
(357) |
(51,591) |
|||||||||
|
Proceeds from term loan |
10,000 |
— |
|||||||||
|
Repayment of term loan |
(17,924) |
— |
|||||||||
|
Proceeds from issuance of senior notes |
244,497 |
255,290 |
|||||||||
|
Payment of debt issuance costs |
(4,212) |
(6,356) |
|||||||||
|
Payment of employment taxes on vesting of restricted stock |
(2,626) |
(4,106) |
|||||||||
|
Dividends paid |
(25,049) |
(17,912) |
|||||||||
|
Repurchase of common stock |
(4,273) |
(17,338) |
|||||||||
|
Repurchase of warrants |
(2,777) |
— |
|||||||||
|
Distribution to noncontrolling interests |
(1,095) |
(915) |
|||||||||
|
Net cash provided by financing activities |
196,184 |
208,092 |
|||||||||
|
(Decrease) increase in cash, cash equivalents and restricted cash |
(9,037) |
82,648 |
|||||||||
|
Effect of foreign currency on cash, cash equivalents and restricted cash |
(183) |
(796) |
|||||||||
|
Net (decrease) increase in cash, cash equivalents and restricted cash |
(9,220) |
81,852 |
|||||||||
|
Cash, cash equivalents and restricted cash, beginning of year |
180,278 |
152,534 |
|||||||||
|
Cash, cash equivalents and restricted cash, end of period |
$ |
171,058 |
$ |
234,386 |
|||||||
|
Supplemental disclosures: |
|||||||||||
|
Interest paid |
$ |
52,931 |
$ |
35,289 |
|||||||
|
Taxes paid |
$ |
5,029 |
$ |
2,455 |
|||||||
|
B. RILEY FINANCIAL, INC. AND SUBSIDIARIES |
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Segment Financial Information |
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(Unaudited) |
||||||||||||||||
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(Dollars in thousands) |
||||||||||||||||
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Three Months Ended |
Nine Months Ended |
|||||||||||||||
|
September 30, |
September 30, |
|||||||||||||||
|
2019 |
2018 |
2019 |
2018 |
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Capital Markets segment: |
||||||||||||||||
|
Revenues - Services and fees |
$ |
108,330 |
$ |
66,558 |
$ |
259,498 |
$ |
189,051 |
||||||||
|
Interest income - Loans and securities lending |
25,766 |
9,785 |
54,147 |
25,406 |
||||||||||||
|
Total revenues |
134,096 |
76,343 |
313,645 |
214,457 |
||||||||||||
|
Selling, general and administrative expenses |
(70,140) |
(57,207) |
(196,570) |
(168,559) |
||||||||||||
|
Restructuring (charge) recovery |
— |
(428) |
4 |
(2,457) |
||||||||||||
|
Interest expense - Securities lending and loan participations sold |
(10,273) |
(6,425) |
(22,579) |
(16,317) |
||||||||||||
|
Depreciation and amortization |
(1,281) |
(1,309) |
(3,844) |
(4,428) |
||||||||||||
|
Segment income |
52,402 |
10,974 |
90,656 |
22,696 |
||||||||||||
|
Auction and Liquidation segment: |
||||||||||||||||
|
Revenues - Services and fees |
11,232 |
2,459 |
65,681 |
44,812 |
||||||||||||
|
Revenues - Sale of goods |
54 |
48 |
1,230 |
48 |
||||||||||||
|
Total revenues |
11,286 |
2,507 |
66,911 |
44,860 |
||||||||||||
|
Direct cost of services |
(2,371) |
(838) |
(21,584) |
(12,263) |
||||||||||||
|
Cost of goods sold |
(126) |
(24) |
(992) |
(41) |
||||||||||||
|
Selling, general and administrative expenses |
(2,835) |
(1,289) |
(9,045) |
(7,787) |
||||||||||||
|
Depreciation and amortization |
(1) |
(7) |
(5) |
(23) |
||||||||||||
|
Segment income |
5,953 |
349 |
35,285 |
24,746 |
||||||||||||
|
Valuation and Appraisal segment: |
||||||||||||||||
|
Revenues - Services and fees |
10,818 |
9,404 |
29,143 |
27,383 |
||||||||||||
|
Direct cost of services |
(4,505) |
(4,067) |
(13,495) |
(12,388) |
||||||||||||
|
Selling, general and administrative expenses |
(2,826) |
(2,379) |
(7,997) |
(7,138) |
||||||||||||
|
Depreciation and amortization |
(36) |
(56) |
(100) |
(159) |
||||||||||||
|
Segment income |
3,451 |
2,902 |
7,551 |
7,698 |
||||||||||||
|
Principal Investments - United Online and magicJack segment: |
||||||||||||||||
|
Revenues - Services and fees |
22,999 |
11,403 |
74,383 |
34,170 |
||||||||||||
|
Revenues - Sale of goods |
864 |
24 |
2,793 |
90 |
||||||||||||
|
Total revenues |
23,863 |
11,427 |
77,176 |
34,260 |
||||||||||||
|
Direct cost of services |
(5,565) |
(3,251) |
(20,131) |
(9,082) |
||||||||||||
|
Cost of goods sold |
(785) |
(28) |
(2,843) |
(101) |
||||||||||||
|
Selling, general and administrative expenses |
(5,895) |
(2,348) |
(18,410) |
(6,321) |
||||||||||||
|
Depreciation and amortization |
(2,956) |
(1,682) |
(9,719) |
(5,040) |
||||||||||||
|
Restructuring charge |
— |
— |
(1,703) |
— |
||||||||||||
|
Segment income |
8,662 |
4,118 |
24,370 |
13,716 |
||||||||||||
|
Consolidated operating income from reportable segments |
70,468 |
18,343 |
157,862 |
68,856 |
||||||||||||
|
Corporate and other expenses (including restructuring recovery of |
||||||||||||||||
|
$210 during the nine months ended September 30, 2018) |
(10,617) |
(5,505) |
(28,778) |
(16,938) |
||||||||||||
|
Interest income |
361 |
442 |
1,329 |
736 |
||||||||||||
|
Income (loss) on equity investments |
1,113 |
828 |
(4,049) |
5,049 |
||||||||||||
|
Interest expense |
(12,772) |
(9,340) |
(35,130) |
(23,926) |
||||||||||||
|
Income before income taxes |
48,553 |
4,768 |
91,234 |
33,777 |
||||||||||||
|
Provision for income taxes |
(14,409) |
(2,046) |
(26,802) |
(8,412) |
||||||||||||
|
Net income |
34,144 |
2,722 |
64,432 |
25,365 |
||||||||||||
|
Net income attributable to noncontrolling interests |
(158) |
(92) |
(50) |
1,051 |
||||||||||||
|
Net income attributable to B. Riley Financial, Inc. |
$ |
34,302 |
$ |
2,814 |
$ |
64,482 |
$ |
24,314 |
||||||||
|
B. RILEY FINANCIAL, INC. AND SUBSIDIARIES |
|||||||||||||||||
|
Adjusted EBITDA Reconciliation |
|||||||||||||||||
|
(Unaudited) |
|||||||||||||||||
|
(Dollars in thousands) |
|||||||||||||||||
|
Three Months Ended |
Nine Months Ended |
||||||||||||||||
|
September 30, |
September 30, |
||||||||||||||||
|
2019 |
2018 |
2019 |
2018 |
||||||||||||||
|
Net income attributable to B. Riley Financial, Inc. |
$ |
34,302 |
$ |
2,814 |
$ |
64,482 |
$ |
24,314 |
|||||||||
|
Adjustments: |
|||||||||||||||||
|
Provision for income taxes |
14,409 |
2,046 |
26,802 |
8,412 |
|||||||||||||
|
Interest expense |
12,772 |
9,340 |
35,130 |
23,926 |
|||||||||||||
|
Interest income |
(361) |
(442) |
(1,329) |
(736) |
|||||||||||||
|
Share based payments |
4,728 |
3,074 |
10,276 |
8,310 |
|||||||||||||
|
Depreciation and amortization |
4,473 |
3,098 |
14,217 |
9,768 |
|||||||||||||
|
Restructuring costs |
— |
428 |
1,699 |
2,247 |
|||||||||||||
|
Transactions related costs and other |
7 |
648 |
6,339 |
2,193 |
|||||||||||||
|
Total EBITDA adjustments |
36,028 |
18,192 |
93,134 |
54,120 |
|||||||||||||
|
Adjusted EBITDA |
$ |
70,330 |
$ |
21,006 |
$ |
157,616 |
$ |
78,434 |
|||||||||
|
B. RILEY FINANCIAL, INC. AND SUBSIDIARIES |
|||||||||||||||||
|
Adjusted Net Income Reconciliation |
|||||||||||||||||
|
(Unaudited) |
|||||||||||||||||
|
(Dollars in thousands, except share data) |
|||||||||||||||||
|
Three Months Ended |
Nine Months Ended |
||||||||||||||||
|
September 30, |
September 30, |
||||||||||||||||
|
2019 |
2018 |
2019 |
2018 |
||||||||||||||
|
Net income attributable to B. Riley Financial, Inc. |
$ |
34,302 |
$ |
2,814 |
$ |
64,482 |
$ |
24,314 |
|||||||||
|
Adjustments: |
|||||||||||||||||
|
Share based payments |
4,728 |
3,074 |
10,276 |
8,310 |
|||||||||||||
|
Amortization of intangible assets |
3,310 |
2,093 |
10,031 |
6,399 |
|||||||||||||
|
Restructuring costs |
— |
428 |
1,699 |
2,247 |
|||||||||||||
|
Transactions related costs and other |
7 |
648 |
6,339 |
2,193 |
|||||||||||||
|
Income tax effect of adjusting entries |
(2,380) |
(2,628) |
(8,185) |
(5,411) |
|||||||||||||
|
Adjusted net income attributable to B. Riley Financial, Inc. |
$ |
39,967 |
$ |
6,429 |
$ |
84,642 |
$ |
38,052 |
|||||||||
|
Adjusted income per common share: |
|||||||||||||||||
|
Adjusted basic income per share |
$ |
1.51 |
$ |
0.25 |
$ |
3.21 |
$ |
1.47 |
|||||||||
|
Adjusted diluted income per share |
$ |
1.42 |
$ |
0.24 |
$ |
3.11 |
$ |
1.42 |
|||||||||
|
Shares used to calculate adjusted basic net income per share |
26,556,223 |
25,968,997 |
26,351,839 |
25,856,339 |
|||||||||||||
|
Shares used to calculate adjusted diluted net income per share |
28,233,423 |
26,854,261 |
27,251,837 |
26,776,133 |
|||||||||||||
|
Contacts |
||
|
Investors |
Media |
|
|
B. Riley Financial |
Jo Anne McCusker |
|
|
ir@brileyfin.com |
jmccusker@brileyfin.com |
|
|
(310) 966-1444 |
(646) 885-5425 |
|