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Sep 30, 2023
B. Riley Q3 2023 Earnings Report
B. Riley reported an increase in total revenues driven by retail liquidation and consumer sectors, along with growth in financial consulting, communications, and wealth management. However, the company experienced a net loss due to unrealized investment losses and a non-cash goodwill and tradename impairment charge related to Targus.
Key Takeaways
B. Riley Financial reported a 48% increase in total revenues to $462.3 million for the third quarter of 2023, driven by strong performance in retail liquidation, consumer, financial consulting, communications, and wealth management. However, the company experienced a net loss of $75.8 million due to unrealized investment losses and a $35.5 million non-cash impairment charge related to Targus. The company's operating adjusted EBITDA increased to $107.5 million.
Total revenues increased by 48% to $462.3 million, driven by retail liquidation, consumer, financial consulting, communications, and wealth management.
Net loss was $75.8 million, primarily due to unrealized investment losses and a $35.5 million non-cash goodwill and tradename impairment charge related to Targus.
Operating revenues increased to $472.9 million, marking the highest in the firm’s history for a quarter.
Operating adjusted EBITDA increased to $107.5 million, ranking third highest in the firm's history for a quarter.
Revenue by Segment
Forward Guidance
B. Riley is focused on executing its strategy and continuing to invest in its platform to strengthen its market share and build out its execution capabilities with best-in-class talent.
Positive Outlook
- Maintaining an efficient capital structure that funds continued platform growth.
- Raised approximately $115 million of equity proceeds in a July common stock offering.
- Expanded the Nomura credit facility by approximately $240 million.
- Reduced other outstanding debt by over $100 million.
- Nimble balance sheet is well positioned to take advantage of opportunities going into 2024.
Challenges Ahead
- Targus has faced challenges in 2023.
- Lower investment marks that reflect a difficult small cap market environment.
- Net loss of $75.8 million for the three months ended September 30, 2023 was primarily attributable to unrealized investment losses.
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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