B. Riley Financial (RILY) 4 May 212021 Q1 Earnings call transcript

Good afternoon, and welcome to B. Riley Financial's First Quarter 2021 Earnings Call. Earlier today, the company reported its first quarter results in a press release, which is available on the company's investor website at ir.brileyfin.com. Today's conference call will include a discussion of non-GAAP financial metrics.

For more information about these metrics and a reconciliation to the nearest GAAP measures, please refer to the company's earnings release and a financial supplement, which can be found in the Investors section of the company's website.

call be recorded, website available today's replay the later reminder, also will on a is and being audio today. As the company's

Chairman open Tom today Co-Founder and and COO. us from remarks, Riley for CFO Bryant Joining we questions. management's will B. Phillip Ahn, and lines Co-Founder Kelleher, Riley, Co-CEO; After and the Co-CEO; are and

Riley, provide turn Before we Bryant you will regarding now the forward-looking over cautions proceed. Riley. conclude today's may Mr. the call, statements. necessary I Mr. call will to I

about Thanks. high-level I'll cover summary will our Good another units. our pleased begin million. $XXX.X with of then my of partner the Ahn, and quarter and strong million Co-CEO, welcome, EBITDA Tom COO, afternoon, everyone. the Financial. individual key of detail with providing financial quarter overview state to We're our Phil Revenues report Kelleher $XXX.X B. more and a and for current metrics. Riley will business. adjusted totaled total a business And overall CFO of share

strong by book, were performance exceptional an strong enhanced quarter. first equally results resulted in investment which our from Our operating

Continued million our book. strength investment drive helped from investment approximately of in the gains market $XXX outsized

of quarter operating these for Excluding $XXX.X EBITDA. $XXX.X adjusted the revenues with million, million gains, operating were

mid-cap businesses. units, the core clients of focus as all We the partners for small deal multiple continuing our advising years. view look appreciated in focusing period business Our believe Principal steady our been banking, proud is the Management coupled which clients to We're sides has stick a transactions Investments, and beneficiary in have by significant to done long-term routes, our on and Investment companies have business. we strong of XX mid-cap our which arena, as grow and operating Brands. and with results almost upside banking our of to and the for long quarter Consulting to their reflected are they transactions while over clients larger flow. on We to we of participating Wealth the balance continued small the recurring years, our a from for of investment contribution Appraisal, from been recognized many

results is one in the first component business. upside of overall benefited just from activity, this quarter our banking our While

M&A the were set continues leadership Our firm pipeline another the in and of our recognition diverse. our some brand business, business, of March. in with our remains February, balance overall restructuring consulting billion of named the activity by nearly of with revenue XXX turnaround our terrific legacy management market our which for restructuring talent validating platform. drive middle added provides consulting highly Global we March January, record as combined Network, assets the month this XX, of in completed we and Bankruptcy reps. of In increased our to acquisition activity Together scale Holdings. addition during really $XX with wealth market. to new meaningful registered In distribution the And National we've and year

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repurchases meaningful our approximately of balance return and business. returned debt and be we have With $XXX to strong the a of quarter, since shareholders of over to feel to million of We million a aggressively $XXX in capital end for warranted our while at can is share done sheet invest our XXXX. and cash in net dividends shareholders our the investments, continue

our share the professionals. stakeholders platform truly ahead. of all for in the dedication gratifying month, our continue of has together, years in been one Taken the Phil? many S&P has metrics quarter. been has was the XXX. and summary exciting to our our the our Last deliver periods of growth over and in strategy. B. is without turn hard been this over and work It Riley's financial B. the momentum validates years, by the Financial Riley not believe to past strongest Phil five to what only of our call the last world-class truly of continued measures. the people in year. We We to With history and company success see our added for our accomplished of team a I'll could to of and the have It strength to brief amazing the accomplished that,

Bryant. Thanks,

months revenues diluted common million. million XX, B. of or Riley reported $X.XX shareholders $XXX.X adjusted and to EBITDA $XXX.X three total March per million total ended was Net the Financial For available share. $XXX.X income of

strategic quarter investment which primarily of Our on mark-to-market relate investments. included results valuations first gains million, $XXX.X to our

the Operating adjusted XX% year represented of for increase by revenues $XXX.X increased million $XXX.X period. revenues prior operating million operating quarter. an to to from $XXX.X compared investments, million $XX.X year XX% the EBITDA million, up Excluding for prior of

non-GAAP operating for investment metrics financial and results are EBITDA adjusted and reminder, a measures. As

For a well our as release. the reconciliation GAAP nearest to to measures, of earnings terms definition as please these refer a

related financial located to metrics into operations. results review to also reportable visibility metrics operating details as the on performance Investor our financial our overall provide our in supplement with we website. and Relations And of investors our calls, continue Additional found can be our in greater previous noted our to

the have segment, recast and During our previously these segment was changes. have February. a Capital Wealth sixth as conjunction of Wealth Holdings under to our in segment, we presentations relevant Markets materials National Management in Management in we reporting acquisition with our the added quarter, reflect reported

investments our operating to banking, results and results. turning our investment our largest management businesses. fund from segment Now institutional Markets segment and is brokerage our Capital in includes

million, million Excluding $XXX to income for period. year the from investment gains, million. totaled $XX.X increased revenues prior Segment Capital $XXX.X up XXX% Markets operating operating

National, to Wealth segment Wealth generated noted existing As Management $XX.X Management revenues earlier, for was business. of acquisition million the of client generated $XX includes for in Combined quarter, results Auction million billion as of and was March income recent revenues assets XXXX. segment addition and million. XX, the $XXX,XXX. under our our $XX.X income of totaled from and Liquidations management approximately $X quarter,

from noted large increased Financial the year-to-year retail compared impact on calls, we quarter-to-quarter revenues revenues due and earnings to Consulting of segment to million our As have projects. liquidation segment for vary prior $XX.X to of $XX.X contributed million quarter. Investments, $X.X of tend to income Principal includes Liquidation magicJack $XX.X Segment revenues $X.X and income prior of Online the and million results period. was million. for year from first million the which United results

Lastly, our which includes licensing segment million. brand and portfolio, brand million of revenues related investments revenues to $X.X $X.X generated of income segment, our

our some balance sheet. Now highlights turning to from

total of Financial loans owned, and XX, loans a We sold. cash Riley at B. investments in over had As other cash equivalents, billion, quarter million B. million in $XXX.X equity of cash included balance $X.X and other and of in receivable and of assets. net Financial's investments investments of and and had cash million investments of net $XXX.X totaled includes Net over Riley participations end. March $XXX prepaid other securities debt, unrestricted $XXX million million which $XX approximately

quarter business XX $X individual and special co-CEO, our paid The to common May XX. of I'll of completes on stockholders Tom? That our to a includes on a our or turn first my be of summary. financial close Finally, to will we the about May this dividend record declared discuss our business to $X.XX. units. quarterly total over as regular call Tom dividend related the Kelleher, quarterly dividend of dividend $X.XX of earnings,

Thanks, Phil.

saw of the momentum banking As top call, last the quarter, the Bryant exceptional late had continuing an noted we year. investment at

brokerage. bank. the large further fourth Record Highlights raising for validate include Our in several the divest driven current as recognition completing ranks institutional position debt securities investment and rise relative and of & a quarter Riley sale $XXX in by Bed, Bath assets. the leading Wilcox, B. certain final equity strong has to Beyonds mid-market Babcock processed helped noncore million and results transactions & were and for

completed million a IPO as team IPO, in Gold's largest of and role Rocky which Our Honeywell's SPAC buy-side the has adviser acquisition to portfolio African $XXX $XXX our was Brands' SPAC date. brand million

year. the investing quarter another quarter AMC in ATMs Notable record the in nearly our high results Novavax. business, include First for market projects related prior for at issuances last this of or to resulting and all-time doubled, ATM QX

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of real are acquisitions through to In addition, capital put exploring estate. distressed work we ways

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as we brand world-class which XX were continue we sales to touch units, leading team, financial excited and our as to the we With more has business resonating, years is deliver our and our be superior points the all diversified business enhanced as our work brand, the a ago. seeing to thanks across today services much of clients. a Our We're company, of started teams force. when our value strong and we connectivity

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