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Mar 31, 2022
B. Riley Q1 2022 Earnings Report
B. Riley Financial reported first quarter results reflecting resilient performance offset by challenges in underwriting and investment portfolio.
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
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.