News

News

B. Riley Financial Reports Third Quarter 2021 Results; Declares $4.00 Dividend
Net income of $48.6 million, $1.69 diluted EPS
Total revenues increased to $381.5 million, total adjusted EBITDA of $114.1 million
Operating revenues increased to $363.3 million, operating adjusted EBITDA of $101.1 million
Strong earnings driven by investment banking, in addition to wealth management, principal investments, and brands
Increases regular quarterly dividend to $1.00 from previous $0.50, declares $3.00 special
Total third quarter dividend of $4.00 per common share
Board of Directors approve new annual share repurchase plan of up to $50 million

LOS ANGELES, Oct. 28, 2021 /PRNewswire/ -- B. Riley Financial, Inc. (NASDAQ: RILY), a diversified financial services company, today announced results for the three- and nine-month period ended September 30, 2021.

Third Quarter 2021 Highlights

  • Net income of $48.6 million, up 3% year-over-year
  • Total revenues of $381.5 million, up 69% year-over-year
  • Total adjusted EBITDA (1) of $114.1 million, up 21% year-over-year
  • Operating revenues (2) of $363.3 million, up 87% year-over-year
  • Operating adjusted EBITDA (3) of $101.1 million, up 50% year-over-year

Bryant Riley, Chairman and Co-Chief Executive Officer of B. Riley Financial, said: "We have never been more confident in the power of our combined platform and the opportunities we see ahead. In line with our stated commitment to return capital to our shareholders, we have increased our regular quarterly dividend to $1.00 and declared a special dividend of $3.00 for a total third quarter dividend of $4.00 per common share. Upon payment of our third quarter dividend, we will have returned a total of $9.00 per share, or approximately $247 million, in common stock dividends to shareholders for the first three quarters. The increase in our regular dividend reflects our increasing confidence in our recurring cash flows, as well as the continued growth in our episodic businesses. Our balance sheet continues to be very strong, and our capital base has continued to increase, reflecting the growing cash flows and strong fundamentals of our business. We acknowledge that our diversified business can be difficult to analyze and believe a recurring dividend is an important measure for our shareholders. Our goal is to continue to utilize our cash flows to enhance our business, make accretive acquisitions, and return capital to our shareholders. Over the last year, we have made meaningful progress in reducing our debt expense by redeeming two of our higher rate corporate bonds and issuing debt at a rate that is over 200 basis points lower. We will continue to seek opportunities to improve our capital structure in the coming quarters."

Tom Kelleher, Co-Chief Executive Officer of B. Riley Financial, added: "Over the last year, B. Riley Securities has established itself as a preferred investment banking partner for small- and mid-cap companies. Our investment banking division drove our strong quarterly performance, supported by contributions from our newly expanded wealth management division, cash flow generated by our principal investment companies, and growth in our brands. The momentum of our combined platform continues to benefit each of our distinct businesses. Our strengthened execution capabilities have enabled us to uncover additional new business opportunities while attracting talented professionals to our platform. During the quarter, we acquired 272 Capital in line with our stated intent to build out asset management and named a senior professional to lead the expansion of our fixed income division. We also added several quality financial advisors to our roster as we work to combine our legacy wealth management business with National Holdings. We are continuing to recruit across our business lines and believe our ability to attract talent of this caliber speaks to the value of our diversified platform."

Declaration of Common Dividend
B. Riley has declared a total quarterly cash dividend of $4.00 per common share which is payable on or about November 23, 2021 to common stockholders of record as of November 9, 2021. The total dividend payment reflects an increased regular quarterly dividend of $1.00 from the previous regular quarterly dividend of $0.50, in addition to a $3.00 special one-time dividend.

Bond Redemption and Share Repurchases
In September, the Company redeemed its 7.375% Senior Notes due 2023 in full for an aggregate redemption price of approximately $140.5 million, including accrued interest.

Under the current share repurchase plan, effective as of October 27, 2020, the Company repurchased approximately 495,000 of its common shares for an aggregate amount of approximately $12.6 million through September 30, 2021. B. Riley's Board of Directors has approved a new annual share repurchase program for up to $50 million.

Financial Summary



















Three Months Ended


Nine Months Ended



September 30,

September 30,
















(Dollars in thousands, except for share data)

2021


2020


2021


2020

















Net income available to common shareholders

$

48,621


$

47,291


$

375,415


$

30,324

















Basic income per common share 

$

1.76


$

1.86


$

13.75


$

1.18



Diluted income per common share 

$

1.69


$

1.75


$

13.07


$

1.14
















For the third quarter, net income available to common shareholders was $48.6 million, or $1.69 diluted earnings per share (EPS). For the first nine months of 2021, net income available to common shareholders was $375.4 million, or $13.07 diluted EPS.



















Three Months Ended


Nine Months Ended



September 30,

September 30,
















(Dollars in thousands)

2021


2020


2021


2020

















    Operating Revenues (2)

$

363,325


$

194,500


$

1,000,633


$

528,657



    Investment Gains (Loss)(4)


18,197



31,753



317,818



(36,142)



        Total Revenues

$

381,522


$

226,253


$

1,318,451


$

492,515

















   Operating Adjusted EBITDA (3)

$

101,091


$

67,222


$

315,932


$

184,886



   Investment Adjusted EBITDA (5)


13,010



26,911



308,537



(38,554)



       Total Adjusted EBITDA (1)

$

114,101


$

94,133


$

624,469


$

146,332
















For the three months ended September 30, 2021:

  • Total revenues increased 69% to $381.5 million compared to $226.3 million for the prior year quarter.
  • Total adjusted EBITDA (1) increased 21% to $114.1 million compared to $94.1 million for the prior year period.
  • Operating revenues (2) increased 87% to $363.3 million from $194.5 million for the prior year period.
  • Operating adjusted EBITDA (3) increased 50% to $101.1 million from $67.2 million for the prior year period.
  • Quarterly investment gains (4) were $18.2 million which reflect certain strategic investments held by the Company.

For the first nine months of 2021:

  • Total revenues increased 168% to $1.3 billion compared to $492.5 million for the prior year period.
  • Total adjusted EBITDA (1) increased 327% to $624.5 million compared to $146.3 million for the prior year period.
  • Operating revenues (2) increased 89% to $1.0 billion compared to $528.7 million for the prior year period.
  • Operating adjusted EBITDA (3) increased 71% to $315.9 million from $184.9 million for the prior year period.

As of September 30, cash and investments (6) totaled approximately $2.3 billion including cash and cash equivalents of $378.2 million. Total cash and investments, (6) net of debt, was $593.4 million.

Segment Financial Summary and Highlights























    Operating Revenues(2)


    Investment Gains (4)


Total Segment Revenue




Three Months Ended September 30,


Three Months Ended September 30,


Three Months Ended September 30,



(Dollars in thousands)

2021


2020


2021


2020


2021


2020



Capital Markets


$ 161,718



$ 81,841



$ 16,935



$ 31,399



$ 178,653



$ 113,240



Wealth Management


117,572



17,289



1,262



354



118,834



17,643



Auction and Liquidation


37,072



44,185



-



-



37,072



44,185



Financial Consulting


21,291



25,583



-



-



21,291



25,583



Principal Investments


19,300



21,602



-



-



19,300



21,602



Brands


6,372



4,000



-



-



6,372



4,000
























Segment Operating Income(7)


    Investment Income (5)


Total Segment Income




Three Months Ended September 30,


Three Months Ended September 30,


Three Months Ended September 30,



(Dollars in thousands)

2021


2020


2021


2020


2021


2020



Capital Markets


$   76,142



$ 33,198



$ 11,748



$ 26,557



$   87,890



$   59,755



Wealth Management


5,322



426



1,262



354



6,584



780



Auction and Liquidation


6,298



12,000



-



-



6,298



12,000



Financial Consulting


2,769



7,248



-



-



2,769



7,248



Principal Investments


6,506



8,368



-



-



6,506



8,368



Brands


4,686



2,292



-



-



4,686



2,292






















Capital Markets segment revenues increased 58% to $178.7 million for the third quarter. Excluding investment gains (4) of $16.9 million, segment operating revenues (2) increased 98% year-over-year to $161.7 million, and segment operating income (7) increased 129% to $76.1 million for the quarter. Strong performance was primarily driven by investment banking and fees generated from several significant debt and equity capital markets transactions completed during the quarter.

Wealth Management segment revenues and segment income increased to $118.8 million and $6.6 million, respectively, reflecting the addition of National Holdings which was acquired in February 2021. Combined wealth management assets under management were approximately $32 billion as of September 30, 2021.

Auction and Liquidation segment revenues totaled $37.1 million, driven by retail liquidation activity in Europe. Results for this segment vary from quarter-to-quarter and year-to-year due to the episodic impact of large retail liquidation engagements.

Principal Investments segment companies, magicJack and United Online, continued to perform above expectations, contributing recurring cash flow to the Company.

Supplemental Financial Data
Additional metrics related to operating results and investments can be found in the Third Quarter 2021 Financial Supplement on B. Riley's investor relations website.

Conference Call Details
Management will host an investor call to discuss its third quarter results today, Thursday, October 28, 2021, at 4:30 p.m. Eastern time (1:30 p.m. Pacific time). Investors may access the live broadcast and archived recording via the Company's investor relations website at ir.brileyfin.com.

Date and Time:

Thursday October 28, 2021 at 4:30 p.m. Eastern time (1:30 p.m. Pacific time)

Dial In:

1-855-327-6837 (toll-free) or 1-631-891-4304 (international)

Audio Webcast:

https://ir.brileyfin.com/events-and-presentations



Replay (expires Thursday, November 4, 2021)

Dial In:

1-844-512-2921; 10016591 (pin)

Replay Link:

https://ir.brileyfin.com/events-and-presentations

About B. Riley Financial
B. Riley Financial provides collaborative solutions tailored to fit the capital raising and business advisory needs of its clients and partners. B. Riley operates through several subsidiaries that offer a diverse range of complementary end-to-end capabilities spanning investment banking and institutional brokerage, private wealth and investment management, financial consulting, corporate restructuring, operations management, risk and compliance, due diligence, forensic accounting, litigation support, appraisal and valuation, auction, and liquidation services. For more information, please 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, gain on extinguishment of loans, 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 hereto.

(2)

Operating revenue is defined as the sum of revenues from services and fees, interest income - loans and securities lending, and sale 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 and fair value adjustments on loans.

(5)

Investment adjusted EBITDA and investment income (loss) are defined as trading income (losses) and fair value adjustments on loans, less other investment related expenses.

(6)

Total cash and investments is defined as the sum of cash and cash equivalents, restricted cash, due from clearing brokers net of due to clearing brokers, securities and other investments owned, at fair value net of (i) securities sold not yet purchased and (ii) noncontrolling interest related to investments, advances against customer contracts, loans receivable, at fair value net of loan participations sold, and other investments reported in prepaid and other assets.

(7)

Segment operating income (loss) is defined as segment income (loss) excluding trading income (losses) and fair value adjustments on loans and other investment related expenses.

Note Regarding Use of Non-GAAP Financial Measures
Certain of the information set forth herein, including operating revenues, adjusted EBITDA, operating adjusted EBITDA, and investment adjusted EBITDA, may be considered non-GAAP financial measures. B. Riley Financial believes this information is useful to investors because it provides a basis for measuring the Company's available capital resources, the operating performance of its business and its revenues and cash flow, (i) excluding in the case of operating revenues, trading income (losses) and fair value adjustments on loans, (ii) excluding in the case of adjusted EBITDA, net interest expense, provisions for or benefit from income taxes, depreciation, amortization, fair value adjustment, restructuring costs, gain on extinguishment of loans, impairment of trade names, stock-based compensation and transaction and other expenses, (iii) excluding in the case of operating adjusted EBITDA, the aforementioned adjustments for adjusted EBITDA as well as trading income (losses) and fair value adjustments on loans, and other investment related expenses, (iv) including in the case of investment adjusted EBITDA, trading income (losses) and fair value adjustments on loans, net of other investment related expenses, and (v) including in the case of total cash and investments, net of debt, total cash, net securities and investments, and other minus total debt, that would normally be included in the most directly comparable measures calculated and presented in accordance with Generally Accepted Accounting Principles ("GAAP"). In addition, the Company's management uses these non-GAAP financial measures along with the most directly comparable GAAP financial measures in evaluating the Company's operating performance, management compensation, capital resources, and cash flow. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP, and non-financial measures as reported by the Company may not be comparable to similarly titled amounts reported by other companies.

Forward-Looking Statements
Statements in this press release that are not descriptions of historical facts are forward-looking statements that are based on management's current expectations and assumptions and are subject to risks and uncertainties. If such risks or uncertainties materialize or such assumptions prove incorrect, our business, operating results, financial condition, and stock price could be materially negatively affected. You should not place undue reliance on such forward-looking statements, which are based on the information currently available to us and speak only as of the date of this press release. Such forward-looking statements include, but are not limited to, statements regarding our excitement and the expected growth of our business segments. Factors that could cause such actual results to differ materially from those contemplated or implied by such forward-looking statements include, without limitation, the risks associated with the unpredictable and ongoing impact of the COVID-19 pandemic and other risks described from time to time in B. Riley Financial, Inc.'s periodic filings with the SEC, including, without limitation, the risks described in B. Riley Financial, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2020 and in our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2021 and June 30, 2021 under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" (as applicable). Additional information will be set forth in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2021. These factors should be considered carefully, and readers are cautioned not to place undue reliance on such forward-looking statements. All information is current as of the date this press release is issued, and B. Riley Financial, Inc. undertakes no duty to update this information.

Contacts




Investors

Media

Mike Frank

Jo Anne McCusker

ir@brileyfin.com

press@brileyfin.com

(212) 409-2424

(646) 885-5425

 

B. RILEY FINANCIAL, INC.

Condensed Consolidated Balance Sheets

(Dollars in thousands, except par value)





September 30,


December 31,





2021


2020





(Unaudited)




Assets

Assets:







Cash and cash equivalents

$

378,205


$

103,602


Restricted cash


927



1,235


Due from clearing brokers


599,715



7,089


Securities and other investments owned, at fair value


1,352,100



777,319


Securities borrowed


1,347,656



765,457


Accounts receivable, net


54,790



46,518


Due from related parties


1,513



986


Loans receivable, at fair value (includes $140,064 and $295,809from related parties at







September 30, 2021 and December 31, 2020, respectively)


350,762



390,689


Prepaid expenses and other assets


448,985



87,462


Operating lease right-of-use assets


59,735



48,799


Property and equipment, net


13,720



11,685


Goodwill


237,961



227,046


Other intangible assets, net


196,697



190,745


Deferred tax assets, net


4,085



4,098



Total assets

$

5,046,851


$

2,662,730

Liabilities and Equity

Liabilities:







Accounts payable

$

4,028


$

2,722


Accrued expenses and other liabilities


277,586



168,478


Deferred revenue


68,310



68,651


Deferred tax liabilities, net


67,023



34,248


Due to related parties and partners


176



327


Due to clearing brokers




13,672


Securities sold not yet purchased


419,211



10,105


Securities loaned


1,345,825



759,810


Mandatorily redeemable noncontrolling interests


4,196



4,700


Operating lease liabilities


72,158



60,778


Notes payable


357



37,967


Loan participations sold




17,316


Revolving credit facility


80,000




Term loans, net


252,927



74,213


Senior notes payable, net


1,362,847



870,783



Total liabilities


3,954,644



2,123,770










Commitments and contingencies 






Redeemable noncontrolling interests in equity of subsidiaries


345,000



B. Riley Financial, Inc. equity:







Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 4,485 and 3,971 shares issued and 







outstanding as of September 30, 2021 and December 31, 2020, respectively; and liquidation preference







of $112,128 and $99,260 as of September 30, 2021 and December 31, 2020, respectively





Common stock, $0.0001 par value; 100,000,000 shares authorized; 27,554,664 and 25,777,796







issued and outstanding as of September 30, 2021 and December 31, 2020, respectively


3



3


Additional paid-in capital


399,349



310,326


Retained earnings


309,550



203,080


Accumulated other comprehensive loss


(2,207)



(823)



Total B. Riley Financial, Inc. stockholders' equity


706,695



512,586

Noncontrolling interests


40,512



26,374



Total equity


747,207



538,960




Total liabilities and equity

$

5,046,851


$

2,662,730

 

B. RILEY FINANCIAL, INC.

Condensed Consolidated Statements of Income

(Unaudited)

(Dollars in thousands, except share data)


















Three Months Ended


Nine Months Ended




September 30,


September 30,




2021


2020


2021


2020

Revenues:













Services and fees

$

301,497


$

144,823


$

857,109


$

429,799


Trading income (losses) and fair value adjustments on loans


18,197



31,753



317,818



(36,142)


Interest income - Loans and securities lending


26,869



26,026



89,280



72,383


Sale of goods


34,959



23,651



54,244



26,475



Total revenues


381,522



226,253



1,318,451



492,515

Operating expenses:













Direct cost of services


18,019



23,264



41,435



51,201


Cost of goods sold


12,442



9,813



21,394



11,442


Selling, general and administrative expenses


244,218



97,143



635,484



291,449


Restructuring charge




1,557





1,557


Impairment of tradenames








12,500


Interest expense - Securities lending and loan participations sold


10,097



10,975



40,269



30,669



Total operating expenses


284,776



142,752



738,582



398,818



Operating income


96,746



83,501



579,869



93,697

Other income (expense):













Interest income


70



67



175



537


Gain on extinguishment of loans and other


1,758





8,267




Income (loss) from equity investments


1,149



409



1,172



(145)


Interest expense


(25,372)



(16,374)



(66,014)



(48,537)



Income before income taxes


74,351



67,603



523,469



45,552

Provision for income taxes


(22,693)



(18,711)



(140,113)



(13,380)



Net income


51,658



48,892



383,356



32,172

Net income (loss) attributable to noncontrolling interests


1,108



513



2,474



(1,382)



Net income attributable to B. Riley Financial, Inc.

$

50,550


$

48,379


$

380,882


$

33,554

Preferred stock dividends


1,929



1,088



5,467



3,230



Net income available to common shareholders

$

48,621


$

47,291


$

375,415


$

30,324















Basic income per common share 

$

1.76


$

1.86


$

13.75


$

1.18

Diluted income per common share 

$

1.69


$

1.75


$

13.07


$

1.14















Weighted average basic common shares outstanding


27,570,716



25,446,292



27,297,917



25,699,735

Weighted average diluted common shares outstanding


28,794,066



27,050,448



28,726,492



26,689,700

 

B. RILEY FINANCIAL, INC.

Segment Financial Information

(Unaudited)

(Dollars in thousands)


















Three Months Ended


Nine Months Ended




September 30,


September 30,




2021


2020


2021


2020

Capital Markets segment:













Revenues - Services and fees

$

134,849


$

55,815


$

431,825


$

189,779


Trading income (loss) and fair value adjustments on loans


16,935



31,399



311,335



(36,536)


Interest income - Loans and securities lending


26,869



26,026



89,280



72,383


    Total revenues


178,653



113,240



832,440



225,626


Selling, general and administrative expenses


(80,152)



(40,920)



(231,765)



(125,844)


Restructuring charge




(917)





(917)


Interest expense - Securities lending and loan participations sold


(10,097)



(10,975)



(40,269)



(30,669)


Depreciation and amortization


(514)



(673)



(1,526)



(1,864)



Segment income


87,890



59,755



558,880



66,332

Wealth Management segment:













Revenues - Services and fees


117,572



17,289



270,558



51,494


Trading income and fair value adjustments on loans


1,262



354



6,483



394


    Total revenues


118,834



17,643



277,041



51,888


Selling, general and administrative expenses


(110,157)



(16,395)



(260,331)



(49,226)


Depreciation and amortization


(2,093)



(468)



(6,832)



(1,421)



Segment income


6,584



780



9,878



1,241

Auction and Liquidation segment:













Revenues - Services and fees


2,745



21,473



15,637



49,340


Revenues - Sale of goods


34,327



22,712



52,162



23,757


    Total revenues


37,072



44,185



67,799



73,097


Direct cost of services


(13,622)



(18,373)



(27,742)



(36,406)


Cost of goods sold


(11,999)



(9,046)



(19,578)



(9,360)


Selling, general and administrative expenses


(5,153)



(4,625)



(9,719)



(8,880)


Restructuring charge




(140)





(140)


Depreciation and amortization




(1)





(2)



Segment income


6,298



12,000



10,760



18,309

Financial Consulting segment:













Revenues - Services and fees


21,291



25,583



66,435



65,142


Selling, general and administrative expenses


(18,436)



(17,759)



(55,896)



(48,756)


Restructuring charge




(500)





(500)


Depreciation and amortization


(86)



(76)



(273)



(216)



Segment income


2,769



7,248



10,266



15,670

Principal Investments - United Online and magicJack segment:













Revenues - Services and fees


18,669



20,663



57,394



63,037


Revenues - Sale of goods


631



939



2,081



2,718


    Total revenues


19,300



21,602



59,475



65,755


Direct cost of services


(4,397)



(4,891)



(13,693)



(14,795)


Cost of goods sold


(443)



(767)



(1,816)



(2,082)


Selling, general and administrative expenses


(5,458)



(4,840)



(15,096)



(14,352)


Depreciation and amortization


(2,496)



(2,736)



(7,558)



(8,466)



Segment income


6,506



8,368



21,312



26,060

Brands segment:













Revenues - Services and fees


6,372



4,000



15,261



11,007


Selling, general and administrative expenses


(972)



(994)



(2,338)



(2,207)


Depreciation and amortization


(714)



(714)



(2,143)



(2,143)


Impairment of tradenames








(12,500)



Segment income (loss)


4,686



2,292



10,780



(5,843)

Consolidated operating income from reportable segments


114,733



90,443



621,876



121,769















Corporate and other expenses 


(17,987)



(6,942)



(42,007)



(28,072)

Interest income


70



67



175



537

Gain on extinguishment of loans and other


1,758





8,267



Income (loss) on equity investments


1,149



409



1,172



(145)

Interest expense


(25,372)



(16,374)



(66,014)



(48,537)


Income before income taxes


74,351



67,603



523,469



45,552

Provision for income taxes


(22,693)



(18,711)



(140,113)



(13,380)


Net income


51,658



48,892



383,356



32,172

Net income (loss) income attributable to noncontrolling interests


1,108



513



2,474



(1,382)


Net income attributable to B. Riley Financial, Inc.


50,550



48,379



380,882



33,554

Preferred stock dividends


1,929



1,088



5,467



3,230


Net income available to common shareholders

$

48,621


$

47,291


$

375,415


$

30,324

 

B. RILEY FINANCIAL, INC.

Adjusted EBITDA and Operating Adjusted EBITDA Reconciliation

(Unaudited)

(Dollars in thousands)




















Three Months Ended


Nine Months Ended





September 30,


September 30,





2021


2020


2021


2020

Net income attributable to B. Riley Financial, Inc.

$

50,550


$

48,379


$

380,882


$

33,554

Adjustments:













Provision for income taxes


22,693



18,711



140,113



13,380


Interest expense


25,372



16,374



66,014



48,537


Interest income


(70)



(67)



(175)



(537)


Share based payments


9,374



4,778



23,508



14,267


Depreciation and amortization


6,142



4,886



19,066



14,765


Restructuring costs  




1,557





1,557


Gain on extinguishment of loans






(6,509)




Impairment of tradenames








12,500


Transactions related costs and other


40



(485)



1,570



8,309


















Total EBITDA adjustments


63,551



45,754



243,587



112,778



















Adjusted EBITDA

$

114,101


$

94,133


$

624,469


$

146,332

Operating EBITDA Adjustments:













Trading (income) losses and fair value adjustments on loans


(18,197)



(31,753)



(317,818)



36,142


Other investment related expenses


5,187



4,842



9,281



2,412


















Total Operating EBITDA Adjustments


(13,010)



(26,911)



(308,537)



38,554
















Operating Adjusted EBITDA

$

101,091


$

67,222


$

315,932


$

184,886

 

B. RILEY FINANCIAL, INC.

Adjusted Net Income Reconciliation

(Unaudited)

(Dollars in thousands, except share data)
















Three Months Ended


Nine Months Ended



September 30,


September 30,



2021


2020


2021


2020

Net income attributable to B. Riley Financial, Inc.

$

50,550


$

48,379


$

380,882


$

33,554

Adjustments:













Share based payments


9,374



4,778



23,508



14,267


Amortization of intangible assets


5,156



3,919



16,176



11,967


Restructuring costs  




1,557





1,557


Gain on extinguishment of loans






(6,509)




Impairment of tradenames








12,500


Transactions related costs and other


40



(485)



1,570



8,309


Income tax effect of adjusting entries


(4,514)



(2,725)



(9,587)



(13,456)

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

$

60,606


$

55,423


$

406,040


$

68,698














Adjusted income per common share:













Adjusted basic income per share 

$

2.20


$

2.18


$

14.87


$

2.67


Adjusted diluted income per share 

$

2.10


$

2.05


$

14.13


$

2.57














Shares used to calculate adjusted basic net income per share


27,570,716



25,446,292



27,297,917



25,699,735

Shares used to calculate adjusted diluted net income per share


28,794,066



27,050,448



28,726,492



26,689,700

 

SOURCE B. Riley Financial