B. Riley Financial Unveils Preliminary Estimates
Net Income Available to Common Shareholders Expected to be in Range of $48 million to $68 million, or $1.57 to $2.22 Per Diluted Net Income per Common Share
B. Riley Financial, Inc. (NASDAQ: RILY), a diversified financial services firm, has released its preliminary estimates for the financial results for the quarter ending December 31, 2024. These estimates provide a range that is not yet audited and are subject to the finalization of the company's annual financial statements.
Bryant Riley, Chairman and Co-CEO of B. Riley Financial, remarked on the quarter's results: "This period signifies a pivotal transition for us, moving from managing losses in our investments to emphasizing our core operational strengths and business focus. We made significant headway in monetizing our non-core assets and addressing short-term liabilities. However, unusual expenses related to legal, transactional, and restructuring fees negatively impacted our results, although we anticipate their decline as the year progresses. "
Riley further elaborated that over the past year, the company has effectively reduced its debt by more than $700 million since January 2024. This decrease has allowed the firm to retire its Nomura facility, reinforcing its forward-looking perspective. He expressed optimism about the company’s future, bolstered by the robust underlying performance of its core operations, most notably in B. Riley Securities, which concluded the year on a high note.
Highlights of the Preliminary Financial Estimates
Summary of the preliminary unaudited estimates for the three-months ending December 31, 2024:
- Net income available to common shareholders is projected to be between $48 million and $68 million, translating to diluted net income per share of approximately $1.57 to $2.22. This range includes an estimated $236 million to $247 million income from discontinued operations, linked to the divestment of a majority interest in the Great American businesses.
- Diluted net income per common share is expected to be between $1.57 and $2.22.
- The net loss from continuing operations is anticipated to be in the range of ($178) million to ($187) million, primarily due to:
- Preliminary impairment charges of goodwill and intangible assets estimated to be between $73 million and $79 million.
- Trading losses and realized/unrealized losses on investments amounting to approximately $49 million.
- Operating adjusted EBITDA from continuing operations is expected to be between $12 million and $14 million.
- Cash, cash equivalents, and restricted cash at approximately $257 million as of December 31, 2024, including about $156 million in cash and cash equivalents and $101 million in restricted cash reserved for senior notes, which were redeemed subsequently.
- Total debt projected at $1.78 billion as of December 31, 2024, with net debt estimated at $991 million, reflecting a $221 million decline from the prior quarter.
This update serves to provide insight, though it's important to note that it is not a comprehensive statement of the company’s quarterly results, remaining subject to audit adjustments. The company’s Annual Report on Form 10-K is expected to be filed shortly.
Upcoming Investor Conference Call
B. Riley Financial plans to conduct an investor call today, beginning at 4:30 PM ET, providing further insights into its preliminary financial results for Q4 2024. Investors are encouraged to access the live audio webcast and the archived recording post-call to catch any missed details.
About B. Riley Financial
B. Riley Financial stands out as a diverse financial services enterprise, delivering tailored solutions to effectively address the strategic, operational, and capital requirements of its clients. The company skillfully utilizes cross-platform expertise to offer clients comprehensive support, assisting at various stages throughout their business life cycles. Through its subsidiaries, B. Riley extends end-to-end financial services across investment banking, private wealth solutions, corporate restructuring, and numerous other areas. Additionally, B. Riley strategically invests to enhance shareholder value and engage in senior secured lending for asset-rich firms.
Frequently Asked Questions
What net income is B. Riley Financial anticipating for Q4 2024?
B. Riley Financial expects net income available to common shareholders to be between $48 million and $68 million for Q4 2024.
How does B. Riley plan to reduce unusual expenses?
The company anticipates a decline in unusual expenses as it moves through 2025 by focusing on core operations and strategically managing liabilities.
What capabilities does B. Riley Financial offer its clients?
B. Riley Financial provides a wide array of services, including investment banking, corporate restructuring, financial consulting, and wealth management, making it a versatile partner for its clients.
When will the official financial results be finalized?
The final financial results will be included in the company’s Annual Report on Form 10-K, which is expected to be filed soon.
How is B. Riley positioning itself for future growth?
The company is concentrating on enhancing its core business operations and leveraging its strengths to facilitate growth and strategic investments in the forthcoming quarters.
