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B. Riley Financial Reports Second Quarter 2020 Results; Raises Regular Dividend to $0.30 per Share and Declares Special Dividend of $0.05 per Share
Total Quarterly Dividend of $0.35 per Common Share to be Paid to Stockholders of Record as of August 14, 2020 on August 28, 2020
Consolidated Revenues of $266.5 million and Net Income of $82.8 million, or $3.07 per Diluted Share, Driven by Strong Operating Results and Sharp Recovery in Investments

LOS ANGELES, July 30, 2020 /PRNewswire/ -- B. Riley Financial, Inc. (NASDAQ:RILY) ("B. Riley" or the "Company") today announced results for the second quarter ended June 30, 2020.

Second Quarter 2020 Financial Highlights

  • GAAP consolidated revenues of $266.5 million, adjusted EBITDA (1) of $148.3 million
  • Net income available to common shareholders of $82.8 million, or $3.07 per diluted share
  • Operating revenues (2) of $151.9 million and operating adjusted EBITDA (3) of $46.8 million
  • Investment gains (4) of $114.5 million driven by second quarter market rebound

"Our second quarter results demonstrate our ability to successfully execute on our strategy in a challenging environment created by COVID-19. Our overall business continued to deliver solid performance, while our investment book rebounded sharply from the mark-to-market losses we experienced in the first quarter," said Bryant Riley, Chairman and Co-Chief Executive Officer, B. Riley Financial. "Operating adjusted EBITDA was approximately $117 million for the first six months versus $62 million during the same period in 2019, and increased year-over-year for the second quarter despite the effects of COVID-19 on our retail, brands and appraisal businesses. These results highlight the diversity of our business model and the resiliency of our platform to overcome the impact of COVID-19."

"Investment banking activity accelerated with several noteworthy capital markets transactions, including SPAC and ATM deals. In addition, our counter-cyclical businesses experienced an increase in activity following the initial slowdown in March," Riley continued. "Our bankruptcy and restructuring advisory and banking divisions added a record number of new mandates in June, several of which are ongoing. Retail liquidation activity also resumed in June with several new and returning clients. We expect activity will continue through year-end as COVID-19 accelerates retail industry challenges. Similarly, business for our real estate division increased as retailers and property owners reassess long-term lease and real estate plans."

Riley added, "The ongoing impact of COVID-19 creates limited visibility, but also tremendous opportunities where we believe our diversified platform will continue to serve as a competitive advantage. To that end, we are increasing our regular dividend to $0.30 per common share with an additional special dividend of $0.05 per share for the quarter. We will continue to aggressively leverage our resources and deliver on our mandate to perform for our employees, clients, partners, and shareholders."

Second Quarter 2020 Financial Summary




Three Months Ended


Six Months Ended

June 30,

June 30,




















(Dollars in thousands)


2020


2019


2020


2019


Revenues


















    Operating Revenues (2)


$

151,921



$

159,089



$

334,157



$

275,350



    Investment Gains (Loss) (4)



114,547




5,595




(67,895)




31,462



        Total Revenues


$

266,468



$

164,684



$

266,262



$

306,812





















Adjusted EBITDA (1)


















   Operating Adjusted EBITDA (3)


$

46,756



$

43,151



$

117,664



$

62,009



   Investment Adjusted EBITDA



101,507




9,705




(65,465)




25,277



       Total Adjusted EBITDA


$

148,263



$

52,856



$

52,199



$

87,286


B. Riley Financial reported GAAP consolidated revenues of $266.5 million for the three months ended June 30, 2020, up from $164.7 million in total revenues for the prior year period. Total revenues exceeded the Company's previous quarterly record of $180.1 million in total revenues for the third quarter of 2019.

Net income available to common shareholders totaled $82.8 million, or $3.07 per diluted share, compared to net income of $22.2 million, or $0.82 per diluted share, for the prior year period.

Operating revenues (2) totaled $151.9 million compared to $159.1 million in the prior year period. Operating adjusted EBITDA (3) increased to $46.8 million from $43.2 million for the prior year period. Through the first six months of 2020, B. Riley's operating revenues (2) totaled $334.2 million.

Investment gains (4) of $114.5 million reflected a sharp recovery from the significant mark-to-market losses in the first quarter due to the impact of COVID-19 on equity markets. B. Riley's proprietary investments are comprised of certain private and public securities and loans aimed to create revenue opportunities for the Company's operating business while driving long-term value for its clients, partners, and shareholders.

Total adjusted EBITDA (1) increased to $148.3 million from $52.9 million for the second quarter of 2019.

Supplemental Financial Data
B. Riley has presented information related to its operating results and investments to provide investors with additional metrics regarding its performance and overall results of operations. Further details related to these metrics can be found in a Financial Supplement on the Company's investor relations website at ir.brileyfin.com.

Second Quarter 2020 Segment Financial Summary




Three Months Ended

June 30, 2020














(Dollars in thousands)


Capital Markets


Auction and
Liquidation


Valuation and
Appraisal


Principal
Investments


Brands
























    Operating Revenues (2)


$

111,364



$

8,251



$

7,669



$

21,431



$

3,206



    Investment Gains (4)



114,547




-




-




-




-



        Segment Revenue


$

225,911



$

8,251



$

7,669



$

21,431



$

3,206

























    Operating Income (Loss)



31,062



$

2,020



$

1,478



$

9,188



$

(6,318)



    Investment Gains Income



101,507




-




-




-




-



        Segment Income (Loss)


$

132,569



$

2,020



$

1,478



$

9,188



$

(6,318)


 

  • Capital Markets operating revenues (2) increased to $111.4 million compared to $88.7 million for the prior year period. The increase was primarily driven by several banking and capital market transactions that closed during the quarter, in addition to contributions from financial consulting operations.
  • Auction and Liquidation results reflect retail liquidation projects that closed during the quarter following the pause in March due to COVID-19 stay-at-home orders and social-distancing restrictions. These results tend to be variable from quarter-to-quarter and year-to-year due to the episodic impact of large retail liquidation engagements.
  • Valuation and Appraisal results declined from the prior year quarter due to a slowdown in financing activity by lenders and COVID-19 related travel restrictions. Historical results for this segment have otherwise remained relatively steady from quarter-to-quarter and year-to-year.
  • Principal Investments companies, United Online and magicJack, continued to perform above expectations, contributing steady cash flow for B. Riley. Segment income increased to $9.2 million from $7.8 million for the prior year period.

As of June 30, 2020, cash and investments totaled $899.5 million, including cash and cash equivalents of $106.3 million. The Company's investment balance included approximately $61 million of other equity investments and deposits reported in prepaid and other assets. Total net debt, including investments reported in prepaid and other assets, was $12.5 million.

Share Repurchases
During the second quarter, the Company repurchased over 200,000 shares of its common stock under its existing share repurchase program. In July, B. Riley announced an agreement to repurchase 900,000 shares of its common stock as part of a privately negotiated transaction. Year-to-date through July, B. Riley has repurchased approximately 1.7 million of its common shares.

Dividend
B. Riley's Board of Directors approved an increase in the Company's regular dividend to $0.30 per common share, from the previous dividend of $0.25 per common share. The Company has also declared a one-time, special dividend of $0.05 per common share for the quarter. A total quarterly dividend of $0.35 per common share will be paid on or about August 28, 2020 to stockholders of record as of August 14, 2020.

Conference Call
Management will host a conference call today, Thursday, July 30, 2020 at 4:30 p.m. Eastern time (1:30 p.m. Pacific time), to discuss the Company's quarterly results. The live broadcast and archived recording will be available on the Company's investor relations website at https://ir.brileyfin.com/events-and-presentations.

Date:

Thursday July 30, 2020

Time:

4:30 p.m. Eastern time (1:30 p.m. Pacific time)

Toll-Free:

1-877-451-6152

International:

1-201-389-0879



Replay Dial-In (expires on Thursday August 6, 2020)

Toll-Free:

1-844-512-2921

International:

1-412-317-6671

Replay Pin:

13707044

About B. Riley Financial, Inc. (NASDAQ:RILY)
B. Riley Financial, Inc. provides collaborative financial services solutions tailored to fit the capital raising, business, operational, and financial advisory needs of its clients and partners. B. Riley operates through several subsidiaries which offer a diverse range of complementary end-to-end capabilities spanning investment banking and institutional brokerage, private wealth and investment management, corporate advisory, restructuring, due diligence, forensic accounting, 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. B. Riley also makes proprietary investments in companies and assets with attractive return profiles. For more information about B. Riley and its affiliated companies, visit www.brileyfin.com.

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

(1)

Adjusted EBITDA includes earnings before interest, taxes, depreciation, amortization, restructuring costs, share-based payments, impairment of tradenames, and transaction related and other costs. For a definition of adjusted EBITDA and a reconciliation to GAAP financial measures, please see the Appendix.

(2)

Operating revenue is defined as the sum of revenues from service and fees, interest income - loans and securities lending, and sales of goods.

(3)

Operating adjusted EBITDA is defined as adjusted EBITDA excluding trading income (losses) and fair value adjustments on loans and other investment related expenses.

(4)

Investment gains (loss) is defined as trading income (losses) and fair value adjustments on loans.

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 2020, 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, 2019 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and any additional information included in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2020. 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.

Note Regarding Use of Non-GAAP Financial Measures
Certain of the information set forth herein, including operating revenue, 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, aforementioned adjustments for adjusted EBITDA, trading income (losses) and fair value adjustments on loans, and other investment related expenses, and (iv) in the case of investment adjusted EBITDA this includes trading income (losses) and fair value adjustments on loans, net of other investment related expenses, 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.

Contacts


Investors

Media

B. Riley Financial

Jo Anne McCusker

ir@brileyfin.com

press@brileyfin.com

(310) 966-1444

(646) 885-5425

 

B. RILEY FINANCIAL, INC.

Condensed Consolidated Balance Sheets

(Dollars in thousands, except par value)








June 30,


December 31,


2020


2019



(Unaudited)




Assets






Assets:






Cash and cash equivalents

$

106,253


$

104,268

Restricted cash


471



471

Due from clearing brokers


29,089



23,818

Securities and other investments owned, at fair value


399,044



408,213

Securities borrowed


786,363



814,331

Accounts receivable, net


43,226



46,624

Due from related parties


295



5,832

Advances against customer contracts


1,413



27,347

Loans receivable, at fair value (includes $233,396 from related parties at June 30, 2020)


325,517



43,338

Loans receivable, at cost (includes $157,080 from related parties at December 31, 2019)




225,848

Prepaid expenses and other assets


105,312



81,808

Operating lease right-of-use assets


44,636



47,809

Property and equipment, net


12,287



12,727

Goodwill


227,046



223,697

Other intangible assets, net


199,991



220,525

Deferred income taxes


14,329



31,522

Total assets

$

2,295,272


$

2,318,178

Liabilities and Equity






Liabilities:






Accounts payable

$

4,301


$

4,477

Accrued expenses and other liabilities


106,531



130,714

Deferred revenue


71,017



67,121

Due to related parties and partners


617



1,750

Securities sold not yet purchased


9,804



41,820

Securities loaned


779,013



810,495

Mandatorily redeemable noncontrolling interests


4,351



4,616

Operating lease liabilities


57,364



61,511

Notes payable


714



38,167

Loan participations sold


14,109



12,478

Term loan


57,195



66,666

Senior notes payable


854,037



688,112

Total liabilities


1,959,053



1,927,927







Commitments and contingencies






B. Riley Financial, Inc. stockholders' equity:






Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 2,531 and 2,349 issued and outstanding as of June 30, 2020 and December 31, 2019, respectively; liquidation preference of $63,273 and $58,723 as of June 30, 2020 and December 31, 2019, respectively.


 



 

Common stock, $0.0001 par value; 100,000,000 shares authorized; 25,864,393 and 26,972,332 issued and outstanding as of June 30, 2020 and December 31, 2019, respectively.


 

3



 

3

Additional paid-in capital


306,772



323,109

Retained earnings


5,927



39,536

Accumulated other comprehensive loss


(2,693)



(1,988)

Total B. Riley Financial, Inc. stockholders' equity


310,009



360,660

Noncontrolling interests


26,210



29,591

Total equity


336,219



390,251

Total liabilities and equity

$

2,295,272


$

2,318,178

 

B. RILEY FINANCIAL, INC.

Condensed Consolidated Statements of Operations

(Unaudited)

(Dollars in thousands, except share data)






















Three Months Ended


Six Months Ended






June 30,


June 30,






2020


2019


2020


2019

Revenues:














Services and fees


$

125,595


$

139,968


$

284,976


$

243,864


Trading income (losses) and fair value adjustments on loans



114,547



5,595



(67,895)



31,462


Interest income - Loans and securities lending



24,506



16,961



46,357



28,381


Sale of goods



1,820



2,160



2,824



3,105



Total revenues



266,468



164,684



266,262



306,812

Operating expenses:














Direct cost of services



7,985



19,663



27,937



33,779


Cost of goods sold



860



1,805



1,629



2,924


Selling, general and administrative expenses



106,562



91,907



194,306



186,871


Restructuring charge





1,552



-



1,699


Impairment of tradenames



8,500





12,500




Interest expense - Securities lending and loan participations sold



11,221



5,502



19,694



12,306



Total operating expenses



135,128



120,429



256,066



237,579




Operating income



131,340



44,255



10,196



69,233

Other income (expense):














Interest income



224



331



470



968


Loss from equity investments



(318)



(1,400)



(554)



(5,162)


Interest expense



(16,509)



(11,588)



(32,163)



(22,358)



Income (loss) before income taxes



114,737



31,598



(22,051)



42,681

(Provision) benefit for income taxes



(32,208)



(9,289)



5,331



(12,393)



Net income (loss)



82,529



22,309



(16,720)



30,288

Net (loss) income attributable to noncontrolling interests



(1,311)



152



(1,895)



108



Net income (loss) attributable to B. Riley Financial, Inc.



83,840



22,157



(14,825)



30,180

Preferred stock dividends



1,087





2,142





Net income (loss) available to common shareholders


$

82,753


$

22,157


$

(16,967)


$

30,180

















Basic income (loss) per common share 


$

3.23


$

0.84


$

(0.66)


$

1.15

Diluted income (loss) per common share 


$

3.07


$

0.82


$

(0.66)


$

1.13

















Weighted average basic common shares outstanding



25,627,085



26,278,352



25,827,849



26,247,952

Weighted average diluted common shares outstanding



26,992,823



26,896,573



25,827,849



26,770,922

 

B. RILEY FINANCIAL, INC.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(Dollars in thousands)




Six Months Ended June 30,



2020


2019

Cash flows from operating activities:





Net (loss) income


$

(16,720)


$

30,288

Adjustments to reconcile net income to net cash provided by operating activities:







Depreciation and amortization



9,879



9,744

Provision for doubtful accounts



2,081



1,067

Share-based compensation



9,489



5,548

Fair value adjustments, non-cash



21,975



(5,639)

Non-cash interest and other



(6,943)



(3,144)

Effect of foreign currency on operations



(73)



339

Loss from equity investments



554



5,162

Deferred income taxes



(14,340)



6,430

Impairment of intangibles and loss on disposal of fixed assets



12,550



(344)

Gain on extinguishment of debt



(1,556)



Income allocated for mandatorily redeemable noncontrolling interests



397



446

Change in operating assets and liabilities:







Due from clearing brokers



(5,271)



8,493

Securities and other investments owned



20,009



8,926

Securities borrowed



27,967



171,425

Accounts receivable and advances against customer contracts



27,601



(22,420)

Prepaid expenses and other assets



(19,707)



(45,500)

Accounts payable, accrued expenses and other liabilities



738



1,143

Amounts due to/from related parties and partners



4,404



(3,454)

Securities sold, not yet purchased



(32,017)



5,131

Deferred revenue



3,896



(790)

Securities loaned



(31,481)



(171,413)

Net cash provided by operating activities



13,432



1,438

Cash flows from investing activities:







Purchases of loans receivable



(152,228)



(225,072)

Repayments of loans receivable



74,450



17,640

Sale of loan receivable to related party



1,800



Proceeds from loan participations sold



2,400



Repayment of loan participations sold



(940)



Purchases of property, equipment and other



(851)



(2,514)

Proceeds from sale of property, equipment and intangible assets



1



503

Purchase of equity investments



(6,486)



(25,183)

Proceeds from sale of division of magicJack





6,196

Dividends and distributions from equity investments



797



854

Acquisition of other businesses



(1,500)



Net cash used in investing activities



(82,557)



(227,576)

Cash flows from financing activities:







Repayment of asset based credit facility



(37,096)



Repayment of notes payable 



(357)



(357)

Proceeds from term loan





10,000

Repayment of term loan



(9,620)



(8,305)

Proceeds from issuance of senior notes



171,078



123,935

Redemption of senior notes



(1,829)



Payment of debt issuance costs



(2,760)



(2,039)

Payment of employment taxes on vesting of restricted stock



(2,678)



(2,291)

Common dividends paid



(17,489)



(9,991)

Preferred dividends paid



(2,142)



Repurchase of common stock



(27,779)



(3,252)

Repurchase of warrants



-



(2,777)

Distribution to noncontrolling interests



(2,143)



(856)

Proceeds from issuance of preferred stock



4,630



Net cash provided by financing activities



71,815



104,067

Increase (decrease) in cash, cash equivalents and restricted cash



2,690



(122,071)

Effect of foreign currency on cash, cash equivalents and restricted cash



(705)



37

Net increase (decrease) in cash, cash equivalents and restricted cash



1,985



(122,034)

Cash, cash equivalents and restricted cash, beginning of period



104,739



180,278

Cash, cash equivalents and restricted cash, end of period


$

106,724


$

58,244








Supplemental disclosures:







Interest paid


$

45,934


$

31,604

Taxes paid 


$

608


$

891

 

B. RILEY FINANCIAL, INC.

Segment Financial Information

(Unaudited)

(Dollars in thousands)
























Three Months Ended


Six Months Ended







June 30,


June 30,







2020


2019


2020


2019

Capital Markets segment:














Revenues - Services and fees

$

86,858


$

71,692


$

191,271


$

119,706


Trading income (losses) and fair value adjustments on loans


114,547



5,595



(67,895)



31,462


Interest income - Loans and securities lending


24,506



16,961



46,357



28,381


    Total revenues



225,911



94,248



169,733



179,549


Selling, general and administrative expenses


(81,030)



(63,041)



(135,741)



(126,430)


Restructuring (charge) recovery




(25)





4


Interest expense - Securities lending and loan participations sold


(11,221)



(5,502)



(19,694)



(12,306)


Depreciation and amortization


(1,091)



(1,287)



(2,196)



(2,563)



Segment income



132,569



24,393



12,102



38,254

Auction and Liquidation segment:













Revenues - Services and fees


7,206



33,740



27,867



54,449


Revenues - Sale of goods



1,045



1,176



1,045



1,176


    Total revenues



8,251



34,916



28,912



55,625


Direct cost of services



(3,217)



(12,939)



(18,033)



(19,213)


Cost of goods sold



(285)



(852)



(314)



(866)


Selling, general and administrative expenses


(2,729)



(3,295)



(4,255)



(6,210)


Depreciation and amortization




(2)



(1)



(4)



Segment income



2,020



17,828



6,309



29,332

Valuation and Appraisal segment:













Revenues - Services and fees


7,669



9,742



16,457



18,325


Selling, general and administrative expenses


(6,144)



(6,974)



(13,011)



(14,161)


Depreciation and amortization


(47)



(31)



(88)



(64)



Segment income



1,478



2,737



3,358



4,100

Principal Investments - United Online and magicJack segment:













Revenues - Services and fees


20,656



24,794



42,374



51,384


Revenues - Sale of goods



775



984



1,779



1,929


    Total revenues



21,431



25,778



44,153



53,313


Direct cost of services



(4,768)



(6,724)



(9,904)



(14,566)


Cost of goods sold



(575)



(953)



(1,315)



(2,058)


Selling, general and administrative expenses


(4,049)



(5,495)



(9,512)



(12,515)


Depreciation and amortization


(2,851)



(3,300)



(5,730)



(6,763)


Restructuring charge





(1,527)





(1,703)



Segment income



9,188



7,779



17,692



15,708

Brands segment:















Revenues - Services and fees


3,206





7,007




Selling, general and administrative expenses


(309)





(1,213)




Depreciation and amortization


(715)





(1,429)




Impairment of tradenames



(8,500)





(12,500)





Segment loss




(6,318)





(8,135)



Consolidated operating income from reportable segments


138,937



52,737



31,326



87,394


















Corporate and other expenses 


(7,597)



(8,482)



(21,130)



(18,161)

Interest income




224



331



470



968

Loss on equity investments



(318)



(1,400)



(554)



(5,162)

Interest expense




(16,509)



(11,588)



(32,163)



(22,358)


Income (Loss) before income taxes


114,737



31,598



(22,051)



42,681

 (Provision) benefit for income taxes


(32,208)



(9,289)



5,331



(12,393)


Net income (loss) 



82,529



22,309



(16,720)



30,288

Net (loss) income attributable to noncontrolling interests


(1,311)



152



(1,895)



108


Net income (loss) attributable to B. Riley Financial, Inc.


83,840



22,157



(14,825)



30,180

Preferred stock dividends



1,087





2,142




Net income (loss) available to common shareholders

$

82,753


$

22,157


$

(16,967)


$

30,180

 

B. RILEY FINANCIAL, INC.

Adjusted EBITDA and Operating Adjusted EBITDA Reconciliation

(Unaudited)

(Dollars in thousands)


























Three Months Ended
June 30,


Six Months Ended
June 30,








2020


2019


2020


2019

Net income (loss) attributable to B. Riley Financial, Inc.

$

83,840


$

22,157


$

(14,825)


$

30,180

Adjustments:















Provision (benefit) for income taxes


32,208



9,289



(5,331)



12,393


Interest expense


16,509



11,588



32,163



22,358


Interest income


(224)



(331)



(470)



(968)


Share based payments


4,167



2,934



9,489



5,548


Depreciation and amortization


4,923



4,831



9,879



9,744


Restructuring costs  




1,552





1,699


Impairment of tradenames


8,500





12,500




Transactions related costs and other


(1,660)



836



8,794



6,332





















Total EBITDA adjustments


64,423



30,699



67,024



57,106






















Adjusted EBITDA

$

148,263


$

52,856


$

52,199


$

87,286

Operating EBITDA Adjustments:













Trading (income) losses and fair value adjustments on loans

(114,547)



(5,595)



67,895



(31,462)


Other investment related expenses


13,040



(4,110)



(2,430)



6,185





















Total Operating EBITDA Adjustments


(101,507)



(9,705)



65,465



(25,277)



















Operating Adjusted EBITDA

$

46,756


$

43,151


$

117,664


$

62,009


 

B. RILEY FINANCIAL, INC.

Adjusted Net Income Reconciliation

(Unaudited)

(Dollars in thousands, except share data)


























Three Months Ended
June 30,


Six Months Ended
June 30,








2020


2019


2020


2019

Net income (loss) attributable to B. Riley Financial, Inc.

$

83,840


$

22,157



(14,825)



30,180

Adjustments:















Share based payments


4,167



2,934



9,489



5,548


Amortization of intangible assets


4,024



3,344



8,048



6,721


Restructuring costs  




1,552





1,699


Impairment of tradenames


8,500





12,500




Transactions related costs and other


(1,660)



836



8,794



6,332


Income tax effect of adjusting entries


(4,172)



(2,560)



(10,731)



(5,805)

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

$

94,699


$

28,263



13,275



44,675



















Adjusted income per common share:













Adjusted basic income per share 

$

3.70


$

1.08



0.51



1.70


Adjusted diluted income per share 

$

3.51


$

1.05



0.51



1.67



















Shares used to calculate adjusted basic net income per share


25,627,085



26,278,352



25,827,849



26,247,952

Shares used to calculate adjusted diluted net income per share


26,992,823



26,896,573



25,827,849



26,770,922

 

SOURCE B. Riley Financial

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