B. Riley Q1 2022 Earnings Report
Key Takeaways
B. Riley Financial's Q1 2022 results showed resilience despite a challenging environment for underwriting and investment portfolio. The company reported a net loss of $12.1 million, or ($0.43) diluted EPS. The Capital Markets segment experienced a revenue decrease, while the Wealth Management segment saw an increase. The company ended the quarter with $213.6 million in cash and equivalents.
Net loss available to common shareholders was $12.1 million, or ($0.43) diluted EPS.
Capital Markets segment revenues decreased 87% year-over-year to $61.6 million.
Wealth Management segment revenues increased to $77.5 million from $67.9 million in prior year period.
Principal Investments segment revenues increased to $32.7 million from $20.5 million in the prior year quarter.
B. Riley
B. Riley
B. Riley Revenue by Segment
Forward Guidance
B. Riley expects to see a more material benefit from M&A assignments. The company anticipates the acquisitions of Lingo Management and Bullseye Telecom will be completed this summer, further enhancing uncorrelated, free cash flows.
Positive Outlook
- Expect to see a more material benefit from M&A assignments.
- Capital management business continues to show strength.
- Direct lending activity continues to deliver strong performance.
- Acquisitions of Lingo Management and Bullseye Telecom should further enhance uncorrelated, free cash flows.
- Competitive advantages of diversified platform will deliver long-term sustainable growth and continued strong returns to shareholders.
Challenges Ahead
- Underwriting business faced a challenging environment.
- Investment portfolio faced a challenging environment.
- Wealth Management segment loss reflecting reduced market activity combined with the impact of a settlement charge related to litigation prior to B. Riley’s acquisition of National Holdings in 2021.
- Segment income decreased to $8.8 million up from $7.5 million.
- Capital Markets segment revenues decreased 87% year-over-year to $61.6 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income