B. Riley Financial Reports Second Quarter 2022 Results; Declares $1.00 Dividend

Q2 GAAP Revenues of $42.7 million; Operating Revenues of $266.6 million

Q2 GAAP Net Loss of ($142.2 million), Operating Adjusted EBITDA of $74.2 million

Declares Quarterly Dividend of $1.00 per common share

LOS ANGELES, July 28, 2022 /PRNewswire/ -- B. Riley Financial, Inc. (NASDAQ: RILY) ("B. Riley" or the "Company"), a diversified financial services platform, today announced results for the three-month period ended June 30, 2022.

Bryant Riley, Chairman and Co-Chief Executive Officer of B. Riley Financial, commented: "Our second quarter results demonstrated the relative strength and ability of our non-cyclical businesses to steadily perform amid disruptive markets. Periods of volatility have historically presented our most attractive opportunities to differentiate ourselves with clients, attract top talent, and generate sustainable share gains across key business lines. We believe the current environment is no exception."

"Despite the markdown on our investments and declines in our underwriting business, our dynamic platform has demonstrated continued resiliency. We have earned over $17.00 per share for our shareholders since 2019, and despite a GAAP net loss of ($43.4 million) over the trailing twelve-month period, we delivered operating EBITDA of $366 million in the same period, representing a meaningful increase compared to $114 million in 2019. Increasing contributions from less cyclical and less episodic businesses have exceeded the capital needed to support our dividend while providing us flexibility to continue to invest across our business."

"At the same time, strategic investments remain an integral part of our business, as a strategy that helps competitively advantage our clients. Our cash and investment portfolio has been diversified to balance our allocation between debt and equity-related investments. In our credit positions, we have demonstrated an ability to structure lending opportunities that enable us to earn attractive spreads with minimal impairments over time. The remainder of our portfolio is focused on public and private small-cap companies where we have high conviction in capital appreciation over our investment horizon. Securities in our investment portfolio have exceeded the Russell 2000 Index in multiple market cycles, having generated total returns of more than 90% to B. Riley since 2019. As we look ahead, we remain optimistic about the total return potential of our investment portfolio, as well as our ability to capitalize on opportunities being presented by the current market dislocation."

Tom Kelleher, Co-Chief Executive Officer of B. Riley Financial, added: "During the quarter, the balance of our operating businesses continued to deliver steady cash flow to our platform while performing to support our clients. Amid another transformative period for B. Riley, we have made meaningful progress in expanding our existing businesses while consolidating recent acquisitions. Our communications business with Lingo serves as a leading source of recurring cash flow for our platform as financial consulting performs steadily quarter-to-quarter and year-to-year. With core capabilities in restructuring, asset disposition, and distressed financing, we believe our diversified platform stands to benefit during periods of market austerity. As we begin to realize synergies from combining National Holdings and FocalPoint into our respective legacy wealth and investment banking businesses, we are looking to the horizon and evaluating other accretive acquisitions to accelerate our growth."

Declaration of Common Dividend

B. Riley has declared a regular quarterly cash dividend of $1.00 per common share which is payable on or about August 23 to common stockholders of record as of August 11.

Financial Summary



	Three Months Ended				Six Months Ended
	June 30,				June 30,

(Dollars in thousands, except for share data)		2022		2021		2022		2021

Net (loss) income available to common shareholders	$	(142,161)	$	73,887	$	(154,225)	$	326,794

Basic (loss) income per common share	$	(5.07)	$	2.70	$	(5.52)	$	12.03
Diluted (loss) income per common share	$	(5.07)	$	2.58	$	(5.52)	$	11.39

Net loss available to common shareholders of ($142.2 million), or ($5.07) diluted earnings per share (EPS), was driven by investment loss ⁽⁴⁾ of ($223.9 million) related to the decline in capital markets which impacted the value of the Company's investment portfolio. Net loss was ($154.2 million) year-to-date, or diluted EPS of ($5.52).



	Three Months Ended				Six Months Ended
	June 30,				June 30,

(Dollars in thousands)		2022		2021		2022		2021

Operating Revenues ⁽²⁾	$	266,627	$	304,091	$	540,606	$	637,308
Investment (Loss) Gains ⁽⁴⁾		(223,927)		32,679		(292,317)		299,621
Total Revenues	$	42,700	$	336,770	$	248,289	$	936,929

Operating Adjusted EBITDA ⁽³⁾	$	74,220	$	92,124	$	158,407	$	214,841
Investment Adjusted EBITDA ⁽⁵⁾		(209,997)		32,763		(253,522)		295,527
Total Adjusted EBITDA ⁽¹⁾	$	(135,777)	$	124,887	$	(95,115)	$	510,368

		-		-		-		-

Total revenues were $42.7 million for the quarter and $248.3 million year-to-date.
Operating revenues⁽²⁾ were $266.6 million for the quarter and $540.6 million year-to-date.
Operating adjusted EBITDA⁽³⁾ of $74.2 million for the quarter and $158.4 million year-to-date.
Total adjusted EBITDA⁽¹⁾loss of ($135.8 million) for the quarter and ($95.1 million) year-to-date.

As of June 30, 2022, cash and investments⁽⁶⁾ totaled approximately $2.2 billion including cash and cash equivalents of $216.1 million. Total cash and investments,⁽⁶⁾ net of debt, was $61.5 million.

Segment Financial Summary



	Operating Revenues⁽²⁾				Investment Gains (Loss) ⁽⁴⁾				Total Segment Revenue
	Three Months Ended June 30,				Three Months Ended June 30,				Three Months Ended June 30,
(Dollars in thousands)	2022		2021		2022		2021		2022		2021
Capital Markets		$ 129,825		$ 151,488		$ (225,455)		$ 29,897		$ (95,630)		$ 181,385
Wealth Management		60,861		87,444		1,528		2,865		62,389		90,309
Auction and Liquidation		3,924		17,277		-		-		3,924		17,277
Financial Consulting		24,310		23,735		-		-		24,310		23,735
Principal Investments - Communications and Other		42,533		19,646		-		-		42,533		19,646
Brands		5,174		4,501		-		(83)		5,174		4,418

	Segment Operating Income (Loss)⁽⁷⁾				Investment Income (Loss) ⁽⁵⁾				Total Segment Income (Loss)
	Three Months Ended June 30,				Three Months Ended June 30,				Three Months Ended June 30,
(Dollars in thousands)	2022		2021		2022		2021		2022		2021
Capital Markets		$ 53,282		$ 74,701		$ (211,525)		$ 29,981		$ (158,243)		$ 104,682
Wealth Management		(8,841)		(3,598)		1,528		2,865		(7,313)		(733)
Auction and Liquidation		451		3,555		-		-		451		3,555
Financial Consulting		4,284		4,175		-		-		4,284		4,175
Principal Investments - Communications and Other		7,647		7,275		-		-		7,647		7,275
Brands		3,773		3,096		-		(83)		3,773		3,013

For the three months ended June 30, 2022:

Excluding investment loss of ($225.5 million),⁽⁴⁾ Capital Markets segment operating revenues decreased to $129.8 million from $151.5 million in the prior year period. Segment operating income ⁽⁷⁾ fell to $53.3 million from $74.7 million in the prior year period. Results for the quarter were impacted by declines in investment banking and institutional brokerage activities that were consistent with the industry-wide reduction in deal activity.

Wealth Management revenues fell to $62.4 million with a segment loss of ($7.3 million) due to reduced activity and the impact of a settlement related to a legacy National Securities regulatory matter which pre-dated the Company's acquisition in 2021.

Auction and Liquidation revenues were $3.9 million with segment income of $0.5 million. Results for this segment vary from quarter-to-quarter and year-to-year due to the episodic impact of large retail liquidation engagements.

Financial Consulting revenues increased to $24.3 million, up from $23.7 million in the prior year period. Segment income increased to $4.3 million, up from $4.2 million in the prior year period. The increase was driven primarily by bankruptcy restructuring and forensic litigation consulting matters, in addition to appraisal engagements and real estate dispositions.

Principal Investments – Communications and Other segment revenues increased to $42.5 million, up from $19.6 million in the prior year period due to the addition of Lingo and Marconi Wireless. On a combined basis, communications businesses – magicJack, United Online, Marconi Wireless and Lingo—along with other principal investments, generated segment income of $7.6 million for the quarter.

Brands segment revenues increased to $5.2 million, up from $4.4 million in the prior year period related to the licensing of trademarks for six brands: Catherine Malandrino, English Laundry, Joan Vass, Kensie Girl, Limited Too, and Nanette Lepore. Segment income increased to $3.8 million, up from $3.0 million in the prior year period.



	Operating Revenues⁽²⁾				Investment Gains (Loss) ⁽⁴⁾				Total Segment Revenue
	Six Months Ended June 30,				Six Months Ended June 30,				Six Months Ended June 30,
(Dollars in thousands)	2022		2021		2022		2021		2022		2021
Capital Markets		$ 260,335		$ 359,387		$ (294,367)		$ 294,400		$ (34,032)		$ 653,787
Wealth Management		137,818		152,986		2,050		5,221		139,868		158,207
Auction and Liquidation		7,279		30,727		-		-		7,279		30,727
Financial Consulting		50,246		45,144		-		-		50,246		45,144
Principal Investments - Communications and Other		75,197		40,175		-		-		75,197		40,175
Brands		9,731		8,889		-		-		9,731		8,889

	Segment Operating Income (Loss)⁽⁷⁾				Investment Income (Loss) ⁽⁵⁾				Total Segment Income (Loss)
	Six Months Ended June 30,				Six Months Ended June 30,				Six Months Ended June 30,
(Dollars in thousands)	2022		2021		2022		2021		2022		2021
Capital Markets		$ 111,151		$ 180,684		$ (255,572)		$ 290,306		$ (144,421)		$ 470,990
Wealth Management		(19,459)		(1,927)		2,050		5,221		(17,409)		3,294
Auction and Liquidation		(349)		4,462		-		-		(349)		4,462
Financial Consulting		9,196		7,497		-		-		9,196		7,497
Principal Investments - Communications and Other		16,491		14,806		-		-		16,491		14,806
Brands		6,991		6,094		-		-		6,991		6,094

For the six months ended June 30, 2022:

Excluding the year-to-date investment loss ⁽⁴⁾ of ($294.4 million), Capital Markets segment operating revenues ⁽²⁾ were $260.3 million with segment operating income ⁽⁷⁾ of $111.2 million.

Wealth Management segment revenues were $139.9 million with segment loss of ($17.4 million), year-to-date.

Auction and Liquidation segment revenues were $7.3 million with a segment loss of ($0.3 million), year-to-date.

Financial Consulting year-to-date segment revenues increased to $50.2 million, up from $45.1 million for the prior year-ago period. Segment income of $9.2 million increased compared to $7.5 million in the prior year-ago period.

Principal Investments – Communications and Other segment revenues were $75.2 million with segment income of $16.5 million, year-to-date.

Brands segment year-to-date revenues increased to $9.7 million, up from $8.9 million in the prior year-ago period. Segment income increased to $7.0 million, up from $6.1 million in the prior year ago period.

Investments in the Hurley and Justice brands contributed dividend income of $7.4 million for the quarter, and $13.3 million year-to-date. Results related to the Hurley and Justice investments are recognized as Capital Markets segment operating income. ⁽⁷⁾

Supplemental Financial Data

Additional details related to operating results and investment performance can be found in the Second Quarter 2022 Financial Supplement on B. Riley's investor relations website.

Conference Call Details

Management will host an investor call to discuss its second quarter results today, Thursday, July 28, 2022 at 4:30 p.m. Eastern time (1:30 p.m. Pacific time). Investors may access the live broadcast and archived recording via ir.brileyfin.com.

Date and Time:	Thursday, July 28, 2022 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, August 4, 2022)
Dial In:	1-844-512-2921; 10019761 (pin)

About B. Riley Financial

B. Riley Financial is a diversified financial services platform that delivers tailored solutions to meet the strategic, operational, and capital needs of its clients and partners. B. Riley leverages cross-platform expertise to provide clients with full service, collaborative solutions at every stage of the business life cycle. Through its affiliated subsidiaries, B. Riley provides end-to-end, collaborative financial services across investment banking, 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. B. Riley opportunistically invests to benefit its shareholders, and certain registered affiliates originate and underwrite senior secured loans for asset-rich companies. B. Riley refers to B. Riley Financial, Inc. and/or one or more of its subsidiaries or affiliates. 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 (losses) 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, 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 June 30, 2022. 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.

Contacts

Investors	Media
Mike Frank	Jo Anne McCusker
ir@brileyfin.com	press@brileyfin.com
(212) 409-2424	(646) 885-5425

B. RILEY FINANCIAL, INC.
Consolidated Balance Sheets
(Dollars in thousands, except par value)
				June 30,		December 31,
				2022		2021
					(Unaudited)
Assets
Assets:
	Cash and cash equivalents			$	216,098	$	278,933
	Restricted cash				928		927
	Due from clearing brokers				50,597		29,657
	Securities and other investments owned, at fair value				1,144,896		1,532,095
	Securities borrowed				2,414,074		2,090,966
	Accounts receivable, net				52,935		49,673
	Due from related parties				645		2,074
	Loans receivable, at fair value (includes $88,893 and $167,744 from related parties as of June 30, 2022 and December 31, 2021, respectively)				770,840		873,186
	Prepaid expenses and other assets				480,276		463,502
	Operating lease right-of-use assets				59,806		56,969
	Property and equipment, net				14,182		12,870
	Goodwill				394,331		250,568
	Other intangible assets, net				270,322		207,651
	Deferred tax assets, net				5,287		2,848
		Total assets		$	5,875,217	$	5,851,919
Liabilities and Equity
Liabilities:
	Accounts payable			$	22,428	$	6,326
	Accrued expenses and other liabilities				245,773		343,750
	Deferred revenue				79,226		69,507
	Deferred tax liabilities, net				—		93,055
	Due to related parties and partners				470		—
	Due to clearing brokers				24,695		69,398
	Securities sold not yet purchased				5,403		28,623
	Securities loaned				2,414,201		2,088,685
	Operating lease liabilities				70,972		69,072
	Notes payable				23,186		357
	Revolving credit facility				80,000		80,000
	Term loans, net				367,815		346,385
	Senior notes payable, net				1,644,778		1,606,560
		Total liabilities			4,978,947		4,801,718

Commitments and contingencies
Redeemable noncontrolling interests in equity of subsidiaries					352,894		345,000
B. Riley Financial, Inc. equity:
	Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 4,535 and 4,512 issued and				—		—
	outstanding as of June 30, 2022 and December 31, 2021, respectively; and liquidation preference
	of $113,380 and $112,790 as of June 30, 2022 and December 31, 2021, respectively
	Common stock, $0.0001 par value; 100,000,000 shares authorized; 28,290,458 and 27,591,028				3		3
	issued and outstanding as of June 30, 2022 and December 31, 2020, respectively
	Additional paid-in capital				459,220		413,486
	Retained earnings				32,570		248,862
	Accumulated other comprehensive loss				(3,884)		(1,080)
		Total B. Riley Financial, Inc. stockholders' equity			487,909		661,271
Noncontrolling interests					55,467		43,930
		Total equity			543,376		705,201
			Total liabilities and equity	$	5,875,217	$	5,851,919

B. RILEY FINANCIAL, INC.
Consolidated Statements of Operations
(Unaudited)
(Dollars in thousands, except share data)

				Three Months Ended				Six Months Ended
				June 30,				June 30,
				2022		2021		2022		2021
Revenues:
	Services and fees			$	200,905	$	266,143	$	411,580	$	555,612
	Trading (losses) income and fair value adjustments on loans				(223,927)		32,679		(292,317)		299,621
	Interest income - Loans and securities lending				63,835		25,491		125,261		62,411
	Sale of goods				1,887		12,457		3,765		19,285
		Total revenues			42,700		336,770		248,289		936,929
Operating expenses:
	Direct cost of services				17,785		12,094		29,436		23,416
	Cost of goods sold				1,994		3,626		4,245		8,952
	Selling, general and administrative expenses				167,136		199,922		342,335		391,266
	Interest expense - Securities lending and loan participations sold				14,544		10,983		26,310		30,172
		Total operating expenses			201,459		226,625		402,326		453,806
			Operating (loss) income		(158,759)		110,145		(154,037)		483,123
Other income (expense):
	Interest income				500		56		567		105
	Change in fair value of financial instruments and other				4,321		6,509		10,302		6,509
	(Loss) income from equity investments				(3,399)		(852)		3,376		23
	Interest expense				(31,764)		(20,856)		(62,200)		(40,642)
		(Loss) income before income taxes			(189,101)		95,002		(201,992)		449,118
Benefit from (provision for) income taxes					52,513		(19,902)		56,208		(117,420)
		Net (loss) income			(136,588)		75,100		(145,784)		331,698
Net income (loss) attributable to noncontrolling interests
and redeemable noncontrolling interests					3,571		(576)		4,437		1,366
		Net (loss) income attributable to B. Riley Financial, Inc.			(140,159)		75,676		(150,221)		330,332
Preferred stock dividends					2,002		1,789		4,004		3,538
		Net (loss) income available to common shareholders		$	(142,161)	$	73,887	$	(154,225)		326,794

Basic (loss) income per common share				$	(5.07)	$	2.70	$	(5.52)	$	12.03
Diluted (loss) income per common share				$	(5.07)	$	2.58	$	(5.52)	$	11.39

Weighted average basic common shares outstanding					28,051,570		27,344,184		27,953,845		27,159,257
Weighted average diluted common shares outstanding					28,051,570		28,668,465		27,953,845		28,690,444

B. RILEY FINANCIAL, INC.
Segment Financial Information
(Unaudited)
(Dollars in thousands)

			Three Months Ended				Six Months Ended
			June 30,				June 30,
			2022		2021		2022		2021
Capital Markets segment:
	Revenues - Services and fees		$	67,426	$	125,997	$	136,510	$	296,976
	Trading (losses) income and fair value adjustments on loans			(225,455)		29,897		(294,367)		294,400
	Interest income - Loans and securities lending			62,399		25,491		123,825		62,411
	Total revenues			(95,630)		181,385		(34,032)		653,787
	Selling, general and administrative expenses			(45,865)		(65,473)		(79,982)		(151,613)
	Interest expense - Securities lending and loan participations sold			(14,544)		(10,983)		(26,310)		(30,172)
	Depreciation and amortization			(2,204)		(247)		(4,097)		(1,012)
		Segment (loss) income		(158,243)		104,682		(144,421)		470,990
Wealth Management segment:
	Revenues - Services and fees			60,861		87,444		137,818		152,986
	Trading income and fair value adjustments on loans			1,528		2,865		2,050		5,221
	Total revenues			62,389		90,309		139,868		158,207
	Selling, general and administrative expenses			(68,394)		(88,702)		(154,136)		(150,174)
	Depreciation and amortization			(1,308)		(2,340)		(3,141)		(4,739)
		Segment (loss) income		(7,313)		(733)		(17,409)		3,294
Auction and Liquidation segment:
	Revenues - Services and fees			2,488		5,534		5,843		12,892
	Revenues - Sale of goods			—		11,743		—		17,835
	Interest income - Loans and securities lending			1,436		—		1,436		—
	Total revenues			3,924		17,277		7,279		30,727
	Direct cost of services			(1,296)		(7,540)		(3,631)		(14,120)
	Cost of goods sold			—		(3,105)		—		(7,579)
	Selling, general and administrative expenses			(2,177)		(3,077)		(3,997)		(4,566)
		Segment income (loss)		451		3,555		(349)		4,462
Financial Consulting segment:
	Revenues - Services and fees			24,310		23,735		50,246		45,144
	Selling, general and administrative expenses			(19,948)		(19,471)		(40,891)		(37,460)
	Depreciation and amortization			(78)		(89)		(159)		(187)
		Segment income		4,284		4,175		9,196		7,497
Principal Investments - Communications and Other segment:
	Revenues - Services and fees			40,646		18,932		71,432		38,725
	Revenues - Sale of goods			1,887		714		3,765		1,450
	Total revenues			42,533		19,646		75,197		40,175
	Direct cost of services			(16,489)		(4,554)		(25,805)		(9,296)
	Cost of goods sold			(1,994)		(521)		(4,245)		(1,373)
	Selling, general and administrative expenses			(12,808)		(4,768)		(21,836)		(9,638)
	Depreciation and amortization			(3,595)		(2,528)		(6,820)		(5,062)
		Segment income		7,647		7,275		16,491		14,806
Brands segment:
	Revenues - Services and fees			5,174		4,501		9,731		8,889
	Trading loss and fair value adjustments on loans			—		(83)		—		—
	Total revenues			5,174		4,418		9,731		8,889
	Selling, general and administrative expenses			(818)		(690)		(1,574)		(1,366)
	Depreciation and amortization			(583)		(715)		(1,166)		(1,429)
		Segment income		3,773		3,013		6,991		6,094
Consolidated operating (loss) income from reportable segments				(149,401)		121,967		(129,501)		507,143

Corporate and other expenses				(9,358)		(11,822)		(24,536)		(24,020)
Interest income				500		56		567		105
Change in fair value of financial instruments and other				4,321		6,509		10,302		6,509
(Loss) Income on equity investments				(3,399)		(852)		3,376		23
Interest expense				(31,764)		(20,856)		(62,200)		(40,642)
	(Loss) income before income taxes			(189,101)		95,002		(201,992)		449,118
Benefit from (provision for) income taxes				52,513		(19,902)		56,208		(117,420)
	Net (loss) income			(136,588)		75,100		(145,784)		331,698
Net income (loss) attributable to noncontrolling interests
and redeemable noncontrolling interests				3,571		(576)		4,437		1,366
	Net (loss) income attributable to B. Riley Financial, Inc.			(140,159)		75,676		(150,221)		330,332
Preferred stock dividends				2,002		1,789		4,004		3,538
	Net (loss) income available to common shareholders		$	(142,161)	$	73,887	$	(154,225)	$	326,794

B. RILEY FINANCIAL, INC.
Adjusted EBITDA and Operating Adjusted EBITDA Reconciliation
(Unaudited)
(Dollars in thousands)

				Three Months Ended				Six Months Ended
				June 30,				June 30,
				2022		2021		2022		2021
Net (loss) income attributable to B. Riley Financial, Inc.				$	(140,159)	$	75,676	$	(150,221)	$	330,332
Adjustments:
	(Benefit from) provision for income taxes				(52,513)		19,902		(56,208)		117,420
	Interest expense				31,764		20,856		62,200		40,642
	Interest income				(500)		(56)		(567)		(105)
	Share based payments				14,202		8,608		31,215		14,134
	Depreciation and amortization				7,961		6,165		15,809		12,924
	Gain on extinguishment of loans				—		(6,509)		(1,102)		(6,509)
	Transactions related costs and other				3,468		245		3,759		1,530

		Total EBITDA adjustments			4,382		49,211		55,106		180,036

			Adjusted EBITDA	$	(135,777)	$	124,887	$	(95,115)	$	510,368
Operating EBITDA Adjustments:
	Trading losses (income) and fair value adjustments on loans				223,927		(32,679)		292,317		(299,621)
	Other investment related expenses				(13,930)		(84)		(38,795)		4,094

		Total Operating EBITDA Adjustments			209,997		(32,763)		253,522		(295,527)

Operating Adjusted EBITDA				$	74,220	$	92,124	$	158,407	$	214,841

B. RILEY FINANCIAL, INC.
Adjusted Net Income Reconciliation
(Unaudited)
(Dollars in thousands, except share data)

		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2022		2021		2022		2021
Net (loss) income attributable to B. Riley Financial, Inc.		$	(140,159)	$	75,676	$	(150,221)	$	330,332
Adjustments:
	Share based payments		14,202		8,608		31,215		14,134
	Amortization of intangible assets		6,940		5,134		13,756		11,020
	Gain on extinguishment of loans		—		(6,509)		(1,102)		(6,509)
	Transactions related costs and other		3,468		245		3,759		1,530
	Income tax effect of adjusting entries		(6,707)		(1,557)		(12,889)		(5,073)
Adjusted net (loss) income attributable to B. Riley Financial, Inc.		$	(122,256)	$	81,597	$	(115,482)	$	345,434

Adjusted (loss) income per common share:
	Adjusted basic (loss) income per share	$	(4.36)	$	2.98	$	(4.13)	$	12.72
	Adjusted diluted (loss) income per share	$	(4.36)	$	2.85	$	(4.13)	$	12.04

Shares used to calculate adjusted basic net income per share			28,051,570		27,344,184		27,953,845		27,159,257
Shares used to calculate adjusted diluted net income per share			28,051,570		28,668,465		27,953,845		28,690,444

SOURCE B. Riley Financial

News

Quick Nav

News

Resources