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Jun 30, 2022
B. Riley Q2 2022 Earnings Report
B. Riley Financial's results for Q2 2022 were announced, revealing a GAAP revenue of $42.7 million and an operating revenue of $266.6 million. The company experienced a GAAP net loss of $142.2 million, while the operating adjusted EBITDA stood at $74.2 million. A quarterly dividend of $1.00 per common share was declared.
Key Takeaways
B. Riley Financial reported a GAAP revenue of $42.7 million and operating revenues of $266.6 million for Q2 2022. The company experienced a GAAP net loss of $142.2 million, driven by investment losses, but achieved an operating adjusted EBITDA of $74.2 million. A quarterly dividend of $1.00 per common share was declared.
GAAP Revenues were $42.7 million.
Operating Revenues were $266.6 million.
GAAP Net Loss was ($142.2 million).
Operating Adjusted EBITDA was $74.2 million.
B. Riley
B. Riley
Forward Guidance
B. Riley remains optimistic about the total return potential of its investment portfolio and ability to capitalize on opportunities presented by the current market dislocation.
Positive Outlook
- Strategic investments help competitively advantage clients.
- Cash and investment portfolio has been diversified to balance allocation between debt and equity-related investments.
- Credit positions enable attractive spreads with minimal impairments.
- Investment portfolio focused on public and private small-cap companies with high conviction in capital appreciation.
- Securities in investment portfolio have exceeded the Russell 2000 Index in multiple market cycles.
Challenges Ahead
- Second quarter results demonstrated the relative strength and ability of non-cyclical businesses to steadily perform amid disruptive markets.
- Despite the markdown on investments and declines in underwriting business, the dynamic platform has demonstrated continued resiliency.
- GAAP net loss of ($43.4 million) over the trailing twelve-month 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 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.