B. Riley Financial Files 2023 Annual Report on Form 10-K
-
Audit Committee Independent Legal Counsel, Winston & Strawn LLP , Completes Investigation of Relationship Between the Company andBrian Kahn -
Independent Investigation Reaches Same Conclusion of Prior Internal Review Conducted by
Sullivan & Cromwell LLP
"We want to thank our many stakeholders for their continued confidence, support, and patience as we finalized our Annual Report. With this process behind us, we are excited to be able to focus 100% of our time and efforts on what has always been our highest priority— our core business, delivering for our clients, and creating value for our shareholders."
"We are pleased to note that our overall business has continued to perform well since year-end. Relative valuations for small and mid-caps are as attractive as we have seen in years, and we are investing to grow our leadership in providing financial services and capital solutions to this underserved market."
"Since year-end, we have welcomed senior talent, invested in attractive new opportunities, monetized several others, retired
"We acknowledge the complexities of our business are a result of an aggressive acquisition and investment strategy that has meaningfully diversified our platform. We are continuing to strengthen our processes and procedures to ensure we are best positioned to capitalize on the substantial market opportunities in front of us. Above all, we are proud of our team's persistence and resolve throughout what has been a challenging dynamic for our firm. We look forward to providing more updates on our first quarter earnings call."
Financial Results for the Year Ended
The audited financial statements in the Company's Annual Report reflected certain non-cash adjustments to the preliminary results announced on
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Twelve Months Ended |
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December 31, 2023 |
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(Dollars in thousands) |
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Preliminary |
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Adjustments |
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Final |
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Total revenues |
|
$ |
1,647,185 |
|
$ |
(3,585) |
|
$ |
1,643,600 |
Operating income (loss) |
|
|
150,630 |
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(5,977) |
|
|
144,653 |
Net loss available to common shareholders |
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(86,371) |
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(21,596) |
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(107,967) |
Adjusted EBITDA |
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239,877 |
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(29,633) |
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210,244 |
Operating Adjusted EBITDA |
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367,604 |
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(4,595) |
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363,009 |
Certain of the information set forth herein, including Adjusted EBITDA and Operating Adjusted EBITDA, are non-GAAP financial measures. Information about
Summary of Adjustments from Preliminary Results
- Total revenues were
$1.644 billion , revised from$1.647 billion to reflect$3.6 million of adjustments primarily related to accrued fee income and trading income. - Net loss available to common shareholders was
$108 million , revised from$86.4 million , a change of$21.6 million . The change primarily relates to the decrease in revenues and adjustments from changes in unrealized gains and losses on investments, net of benefit from income taxes. The unrealized gains and losses on investments primarily related to the Company's Hurley and Justice brand investments. The change in the valuation of the Company's investments equates to less than half a percent of the Company's total assets. - Total assets as of
December 31, 2023 were$6.07 billion , revised from the preliminary reported amount of$6.10 billion . The decrease primarily relates to the adjustments in the fair value of securities and other investments as noted above. - Total Adjusted EBITDA(2) was
$210.2 million reflecting adjustments of$29.6 million primarily due to the decrease in revenues and adjustments from changes in unrealized gains and losses on investments. - Total Operating Adjusted EBITDA(3) was
$363.0 million , reflecting adjustments of$4.6 million primarily due to a$2.3 million adjustment to fee income and a$2.2 million reserve on inventory.
Independent Audit Committee Investigation
As referenced in the Company's 2023 Annual Report, the Audit Committee of the Company's Board of Directors engaged
The results of the independent investigation confirmed that the Company and its executives had no involvement with, or knowledge of, any of the alleged misconduct concerning
Additional Information
The Annual Report provides additional clarification regarding the Company's investment in Freedom VCM, which addresses unsubstantiated claims made about the Company's role and participation in the FRG take-private transaction and its investment in FRG.
As noted, the Company's ownership of Freedom VCM amounted to
The Company intends to amend its
About
Footnotes (See "Note Regarding Use of Non-GAAP Financial Measures" for further discussion of these non-GAAP terms. For a reconciliation of Adjusted EBITDA and Operating Adjusted EBITDA to the comparable GAAP financial measures, please see the Appendix hereto.)
(1) Total cash and investments is defined as the sum of cash and cash equivalents, net of noncontrolling interest, restricted cash, due from clearing brokers net of due to clearing brokers, securities and other investments owned, at fair value net of (i) securities sold not yet purchased and (ii) noncontrolling interest related to investments, advances against customer contracts, loans receivable, at fair value net of loan participations sold, and other investments reported in prepaid and other assets.
(2) Adjusted EBITDA includes earnings before interest, taxes, depreciation, amortization, restructuring charge, share-based payments, gain/loss on extinguishment of loans, gain on bargain purchase, impairment of goodwill and tradenames, and transaction related and other costs.
(3) Operating Adjusted EBITDA is defined as Adjusted EBITDA excluding (i) Trading Income (Loss) and Fair Value Adjustments on Loans, (ii) Realized and Unrealized Gains (Losses) on Investments, and (iii) other investment related expenses. During the fourth quarter of 2023, the Company recast its operating metrics to include revenues from fixed income trading. Operating Adjusted EBITDA has been adjusted to include fixed income trading revenue for the periods presented.
(4) Operating Revenues is defined as the sum of revenues from (i) Service and Fees, (ii) Interest Income – Loans and Securities Lending and (iii) Sales of Goods. During the fourth quarter of 2023, the Company recast its operating financial metrics to include revenues from fixed income trading. Operating Revenues has been adjusted to include fixed income trading revenue for the periods presented.
(5) Segment Operating Income (Loss) is defined as segment income (loss) including fixed income trading revenues and excluding trading income (loss) and fair value adjustments on loans and other investment related operating expenses.
(6) Investment Gains (Loss) is defined as Trading Income (Loss) and Fair Value Adjustments on Loans less fixed income trading revenue.
Note Regarding Use of Non-GAAP Financial Measures
Certain of the information set forth herein, including operating revenues, adjusted EBITDA, and operating adjusted EBITDA, may be considered non-GAAP financial measures.
Forward-Looking Statements
Statements in this press release that are not descriptions of historical facts are forward-looking statements that are based on management's current expectations and assumptions and are subject to risks and uncertainties. If such risks or uncertainties materialize or such assumptions prove incorrect, our business, operating results, financial condition, and stock price could be materially negatively affected. You should not place undue reliance on such forward-looking statements, which are based on the information currently available to us and speak only as of the date of this press release. Such forward-looking statements include, but are not limited to, statements regarding our excitement and the expected growth of our business segments. Factors that could cause such actual results to differ materially from those contemplated or implied by such forward-looking statements include, without limitation, the risks described from time to time in
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Condensed Consolidated Balance Sheets |
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(Dollars in thousands) |
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Assets |
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Assets |
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|
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|
||
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Cash and cash equivalents |
$ |
231,964 |
|
$ |
268,618 |
|||||
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Restricted cash |
|
1,875 |
|
|
2,308 |
|||||
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Due from clearing brokers |
|
51,334 |
|
|
48,737 |
|||||
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Securities and other investments owned, at fair value |
|
1,092,106 |
|
|
1,129,268 |
|||||
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Securities borrowed |
|
2,870,939 |
|
|
2,343,327 |
|||||
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Accounts receivable, net of allowance for credit losses of |
|
115,496 |
|
|
149,110 |
|||||
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Due from related parties |
|
172 |
|
|
1,081 |
|||||
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Loans receivable, at fair value (includes |
|
532,419 |
|
|
701,652 |
|||||
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Prepaid expenses and other assets |
|
237,327 |
|
|
460,696 |
|||||
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Operating lease right-of-use asset, net |
|
87,605 |
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|
88,593 |
|||||
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Property and equipment, net |
|
25,206 |
|
|
27,141 |
|||||
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|
|
|
|
472,326 |
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|
512,595 |
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Other intangible assets, net |
|
322,014 |
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|
374,098 |
|||||
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Deferred income taxes |
|
33,595 |
|
|
3,978 |
|||||
Total assets |
$ |
6,074,378 |
|
$ |
6,111,202 |
||||||
Liabilities and Equity |
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Liabilities |
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Accounts payable |
$ |
44,550 |
|
$ |
81,384 |
|||||
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Accrued expenses and other liabilities |
|
273,193 |
|
|
322,974 |
|||||
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Deferred revenue |
|
71,504 |
|
|
85,441 |
|||||
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Due to related parties and partners |
|
2,731 |
|
|
2,210 |
|||||
|
Due to clearing brokers |
|
— |
|
|
19,307 |
|||||
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Securities sold not yet purchased |
|
8,601 |
|
|
5,897 |
|||||
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Securities loaned |
|
2,859,306 |
|
|
2,334,031 |
|||||
|
Operating lease liabilities |
|
98,563 |
|
|
99,124 |
|||||
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Deferred income taxes |
|
— |
|
|
29,548 |
|||||
|
Notes payable |
|
|
19,391 |
|
|
25,263 |
||||
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Revolving credit facility |
|
43,801 |
|
|
127,678 |
|||||
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Term loan |
|
|
|
625,151 |
|
|
572,079 |
|||
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Senior notes payable, net |
|
1,668,021 |
|
|
1,721,751 |
|||||
Total liabilities |
|
5,714,812 |
|
|
5,426,687 |
||||||
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Redeemable noncontrolling interests in equity of subsidiaries |
|
— |
|
|
178,622 |
||||||
|
|
291,117 |
|
|
446,514 |
||||||
Noncontrolling interests |
|
68,449 |
|
|
59,379 |
||||||
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Total equity |
|
359,566 |
|
|
505,893 |
|||||
Total liabilities and equity |
$ |
6,074,378 |
|
$ |
6,111,202 |
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Consolidated Statements of Operations |
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(Dollars in thousands, except share data) |
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Twelve Months Ended |
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December 31 |
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2023 |
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2022 |
|
2021 |
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Revenues: |
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|
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|
|
|
|
|
|
||||
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Services and fees |
|
$ |
1,002,370 |
|
$ |
895,623 |
|
$ |
1,153,225 |
|||||
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Trading income (loss) and fair value adjustments on loans |
|
|
41,828 |
|
|
(202,628) |
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|
220,545 |
|||||
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Interest income - Loans and securities lending |
|
|
284,896 |
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|
245,400 |
|
|
122,723 |
|||||
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Sale of goods |
|
|
314,506 |
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|
142,275 |
|
|
58,205 |
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Total revenues |
|
|
1,643,600 |
|
|
1,080,670 |
|
|
1,554,698 |
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Operating expenses: |
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|
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|
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|
|
||||||
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Direct cost of services |
|
|
238,794 |
|
|
142,455 |
|
|
54,390 |
|||||
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Cost of goods sold |
|
|
213,351 |
|
|
78,647 |
|
|
26,953 |
|||||
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Selling, general and administrative expenses |
|
|
828,903 |
|
|
714,614 |
|
|
906,196 |
|||||
|
Restructuring charge |
|
|
2,131 |
|
|
9,011 |
|
|
— |
|||||
|
Impairment of goodwill and tradenames |
|
|
70,333 |
|
|
— |
|
|
— |
|||||
|
Interest expense - Securities lending and loan participations sold |
|
|
145,435 |
|
|
66,495 |
|
|
52,631 |
|||||
|
|
Total operating expenses |
|
|
1,498,947 |
|
|
1,011,222 |
|
|
1,040,170 |
||||
|
|
|
Operating income |
|
|
144,653 |
|
|
69,448 |
|
|
514,528 |
|||
Other income (expense): |
|
|
|
|
|
|
|
|
|
||||||
|
Interest income |
|
|
3,875 |
|
|
2,735 |
|
|
229 |
|||||
|
Dividend income |
|
|
47,776 |
|
|
35,874 |
|
|
19,732 |
|||||
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Realized and unrealized (losses) gains on investments |
|
|
(162,589) |
|
|
(201,079) |
|
|
166,131 |
|||||
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Change in fair value of financial instruments and other |
|
|
(4,748) |
|
|
10,188 |
|
|
3,796 |
|||||
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Gain on bargain purchase |
|
|
15,903 |
|
|
— |
|
|
— |
|||||
|
(Loss) income from equity investments |
|
|
(181) |
|
|
3,570 |
|
|
2,801 |
|||||
|
Interest expense |
|
|
(187,013) |
|
|
(141,186) |
|
|
(92,455) |
|||||
|
|
(Loss) income before income taxes |
|
|
(142,324) |
|
|
(220,450) |
|
|
614,762 |
||||
Benefit from (provision for) income taxes |
|
|
36,693 |
|
|
63,856 |
|
|
(163,960) |
||||||
|
|
Net (loss) income |
|
|
(105,631) |
|
|
(156,594) |
|
|
450,802 |
||||
Net (loss) gain attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
|
||||||
and redeemable noncontrolling interests |
|
|
(5,721) |
|
|
3,235 |
|
|
5,748 |
||||||
|
|
Net (loss) income attributable to |
|
|
(99,910) |
|
|
(159,829) |
|
|
445,054 |
||||
Preferred stock dividends |
|
|
8,057 |
|
|
8,008 |
|
|
7,457 |
||||||
|
|
Net (loss) income available to common shareholders |
|
$ |
(107,967) |
|
$ |
(167,837) |
|
$ |
437,597 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic (loss) income per common share |
|
$ |
(3.69) |
|
$ |
(5.95) |
|
$ |
15.99 |
||||||
Diluted (loss) income per common share |
|
$ |
(3.69) |
|
$ |
(5.95) |
|
$ |
15.09 |
||||||
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|
|
|
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|
|
|
|
|
|
|
|
|
|
Weighted average basic common shares outstanding |
|
|
29,265,099 |
|
|
28,188,530 |
|
|
27,366,292 |
||||||
Weighted average diluted common shares outstanding |
|
|
29,265,099 |
|
|
28,188,530 |
|
|
29,005,602 |
|
||||||||||||
Consolidated Statements of Operations |
||||||||||||
(Unaudited) |
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(Dollars in thousands, except share data) |
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|
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|
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|
Three Months Ended |
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|
December 31, |
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|
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|
|
2023 |
|
2022 |
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|
|
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|
|
|
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|
|
Revenues: |
|
|
|
|
|
|
|
|
||||
|
Services and fees |
$ |
258,461 |
|
$ |
243,837 |
|
|||||
|
Trading (loss) income and fair value adjustments on loans |
|
(41,518) |
|
|
(58,670) |
|
|||||
|
Interest income - Loans and securities lending |
|
62,781 |
|
|
62,545 |
|
|||||
|
Sale of goods |
|
63,196 |
|
|
134,380 |
|
|||||
|
|
Total revenues |
|
342,920 |
|
|
382,092 |
|
||||
Operating expenses: |
|
|
|
|
|
|
||||||
|
Direct cost of services |
|
60,606 |
|
|
68,496 |
|
|||||
|
Cost of goods sold |
|
47,355 |
|
|
71,313 |
|
|||||
|
Selling, general and administrative expenses |
|
205,703 |
|
|
208,552 |
|
|||||
|
Restructuring charge |
|
1,182 |
|
|
995 |
|
|||||
|
Impairment of goodwill and tradenames |
|
33,100 |
|
|
— |
|
|||||
|
Interest expense - Securities lending and loan participations sold |
|
38,863 |
|
|
22,738 |
|
|||||
|
|
Total operating expenses |
|
386,809 |
|
|
372,094 |
|
||||
|
|
|
Operating (loss) income |
|
(43,889) |
|
|
9,998 |
|
|||
Other income (expense): |
|
|
|
|
|
|
||||||
|
Interest income |
|
420 |
|
|
1,482 |
|
|||||
|
Dividend income |
|
12,141 |
|
|
9,595 |
|
|||||
|
Realized and unrealized losses on investments |
|
(77,629) |
|
|
(64,874) |
|
|||||
|
Change in fair value of financial instruments and other |
|
(750) |
|
|
460 |
|
|||||
|
Gain on bargain purchase |
|
15,903 |
|
|
— |
|
|||||
|
(Loss) income from equity investments |
|
(6) |
|
|
285 |
|
|||||
|
Interest expense |
|
(46,891) |
|
|
(44,399) |
|
|||||
|
|
Loss before income taxes |
|
(140,701) |
|
|
(87,453) |
|
||||
Benefit from income taxes |
|
51,037 |
|
|
23,998 |
|
||||||
|
|
Net loss |
|
|
(89,664) |
|
|
(63,455) |
|
|||
Net (loss) income attributable to noncontrolling interests |
|
|
|
|
|
|
||||||
and redeemable noncontrolling interests |
|
(41) |
|
|
(6,010) |
|
||||||
|
|
Net loss attributable to |
|
(89,623) |
|
|
(57,445) |
|
||||
Preferred stock dividends |
|
2,015 |
|
|
2,002 |
|
||||||
|
|
Net loss available to common shareholders |
$ |
(91,638) |
|
$ |
(59,447) |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic loss per common share |
$ |
(3.03) |
|
$ |
(2.08) |
|
||||||
Diluted loss per common share |
$ |
(3.03) |
|
$ |
(2.08) |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average basic common shares outstanding |
|
30,248,946 |
|
|
28,545,714 |
|
||||||
Weighted average diluted common shares outstanding |
|
30,248,946 |
|
|
28,545,714 |
|
|
|||||||||||||||||
Adjusted EBITDA and Operating Adjusted EBITDA Reconciliation |
|||||||||||||||||
(Unaudited) |
|||||||||||||||||
(Dollars in thousands) |
|||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||
|
|
|
|
|
|
|
December 31, |
|
December 31, |
||||||||
|
|
|
|
|
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
Net loss attributable to |
$ |
(89,623) |
|
$ |
(57,445) |
|
$ |
(99,910) |
|
$ |
(159,829) |
||||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Benefit from income taxes |
|
(51,037) |
|
|
(23,998) |
|
|
(36,693) |
|
|
(63,856) |
|||||
|
Interest expense |
|
46,891 |
|
|
44,399 |
|
|
187,013 |
|
|
141,186 |
|||||
|
Interest income |
|
(420) |
|
|
(1,482) |
|
|
(3,875) |
|
|
(2,735) |
|||||
|
Share based payments |
|
9,845 |
|
|
15,312 |
|
|
45,109 |
|
|
61,140 |
|||||
|
Depreciation and amortization |
|
11,502 |
|
|
13,443 |
|
|
49,604 |
|
|
39,969 |
|||||
|
Restructuring charge |
|
1,182 |
|
|
995 |
|
|
2,131 |
|
|
9,011 |
|||||
|
Gain on bargain purchase |
|
(15,903) |
|
|
— |
|
|
(15,903) |
|
|
— |
|||||
|
Loss (gain) on extinguishment of loans |
|
— |
|
|
— |
|
|
5,409 |
|
|
(1,102) |
|||||
|
Impairment of goodwill and tradenames |
|
33,100 |
|
|
— |
|
|
70,333 |
|
|
— |
|||||
|
Transactions related costs and other |
|
1,864 |
|
|
(5,264) |
|
|
7,026 |
|
|
8,498 |
|||||
|
|
Total EBITDA adjustments |
|
37,024 |
|
|
43,405 |
|
|
310,154 |
|
|
192,111 |
||||
|
|
|
Adjusted EBITDA |
$ |
(52,599) |
|
$ |
(14,040) |
|
$ |
210,244 |
|
$ |
32,282 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating EBITDA Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Trading loss (income) and fair value adjustments on loans |
|
41,518 |
|
|
58,670 |
|
|
(41,828) |
|
|
202,628 |
|||||
|
Realized and unrealized losses on investments |
|
77,629 |
|
|
64,874 |
|
|
162,589 |
|
|
201,079 |
|||||
|
Fixed Income Spread |
|
8,250 |
|
|
8,069 |
|
|
29,165 |
|
|
27,127 |
|||||
|
Other investment related expenses |
|
(538) |
|
|
(7,697) |
|
|
2,839 |
|
|
(69,531) |
|||||
|
|
Total Operating EBITDA Adjustments |
|
126,859 |
|
|
123,916 |
|
|
152,765 |
|
|
361,303 |
||||
Operating Adjusted EBITDA |
$ |
74,260 |
|
$ |
109,876 |
|
$ |
363,009 |
|
$ |
393,585 |
|
|||||||||||||||||
Operating Revenues Reconciliation |
|||||||||||||||||
(Unaudited) |
|||||||||||||||||
(Dollars in thousands) |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||
|
|
|
|
|
|
|
December 31, |
|
December 31, |
||||||||
|
|
|
|
|
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
Total Revenues |
|
$ |
342,920 |
|
$ |
382,092 |
|
$ |
1,643,600 |
|
$ |
1,080,670 |
|||||
Operating Revenues Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Trading loss (income) and fair value adjustments on loans |
|
41,518 |
|
|
58,670 |
|
|
(41,828) |
|
|
202,628 |
|||||
|
Fixed Income Spread |
|
8,250 |
|
|
8,069 |
|
|
29,165 |
|
|
27,127 |
|||||
|
|
Total Revenues Adjustments |
|
49,768 |
|
|
66,739 |
|
|
(12,663) |
|
|
229,755 |
||||
Operating Revenues |
$ |
392,688 |
|
$ |
448,831 |
|
$ |
1,630,937 |
|
$ |
1,310,425 |
|
|||||||||||||||||
Revenues Reconciliation |
|||||||||||||||||
(Dollars in thousands) |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||
|
|
|
|
|
|
|
December 31, |
|
December 31, |
||||||||
|
|
|
|
|
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Capital Markets |
$ |
83,973 |
|
$ |
72,304 |
|
$ |
571,002 |
|
$ |
327,596 |
|||||
|
Wealth Management |
|
49,350 |
|
|
46,217 |
|
|
198,245 |
|
|
234,257 |
|||||
|
Auction and Liquidation |
|
9,439 |
|
|
59,778 |
|
|
103,265 |
|
|
74,096 |
|||||
|
|
|
40,123 |
|
|
25,427 |
|
|
133,705 |
|
|
98,508 |
|||||
|
Communications |
|
82,021 |
|
|
87,944 |
|
|
337,689 |
|
|
235,655 |
|||||
|
Consumer Products |
|
54,046 |
|
|
77,821 |
|
|
233,202 |
|
|
77,821 |
|||||
|
All Other |
|
|
|
23,968 |
|
|
12,601 |
|
|
66,492 |
|
|
32,737 |
|||
|
|
Total Revenues |
$ |
342,920 |
|
$ |
382,092 |
|
$ |
1,643,600 |
|
$ |
1,080,670 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating (Loss) Income Reconciliation |
|||||||||||||||||
(Dollars in thousands) |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||
|
|
|
|
|
|
|
|
|
|
December 31, |
|||||||
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
2023 |
|
2022 |
||
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
|
|
|
|
Operating (Loss) Income: |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Capital Markets |
$ |
(6,253) |
|
$ |
(8,007) |
|
$ |
194,843 |
|
$ |
81,602 |
|||||
|
Wealth Management |
|
683 |
|
|
(7,414) |
|
|
3,097 |
|
|
(34,320) |
|||||
|
Auction and Liquidation |
|
(1,147) |
|
|
12,372 |
|
|
21,371 |
|
|
12,600 |
|||||
|
|
|
7,816 |
|
|
4,412 |
|
|
30,420 |
|
|
16,312 |
|||||
|
Communications |
|
6,468 |
|
|
11,205 |
|
|
34,725 |
|
|
30,320 |
|||||
|
Consumer Products |
|
(37,538) |
|
|
8,188 |
|
|
(77,710) |
|
|
8,188 |
|||||
|
All Other |
|
|
|
(13,918) |
|
|
(10,758) |
|
|
(62,093) |
|
|
(45,254) |
|||
|
|
Total Operating (Loss) Income |
$ |
(43,889) |
|
$ |
9,998 |
|
$ |
144,653 |
|
$ |
69,448 |
|
|||||||||||||||||
Capital Markets Operating Revenues Reconciliation |
|||||||||||||||||
(Unaudited) |
|||||||||||||||||
(Dollars in thousands) |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||
|
|
|
|
|
|
|
December 31, |
|
December 31, |
||||||||
Capital Markets |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||||||
Total Revenues |
|
$ |
83,973 |
|
$ |
72,304 |
|
$ |
571,002 |
|
$ |
327,596 |
|||||
Operating Revenues Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Trading loss (income) and fair value adjustments on loans |
|
44,041 |
|
|
59,115 |
|
|
(37,070) |
|
|
206,150 |
|||||
|
Fixed Income Spread |
|
7,011 |
|
|
6,927 |
|
|
25,519 |
|
|
22,765 |
|||||
|
|
Total Revenues Adjustments |
|
51,052 |
|
|
66,042 |
|
|
(11,551) |
|
|
228,915 |
||||
Operating Revenues |
$ |
135,025 |
|
$ |
138,346 |
|
$ |
559,451 |
|
$ |
556,511 |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Capital Markets Segment Operating Income Reconciliation |
|||||||||||||||||
(Unaudited) |
|||||||||||||||||
(Dollars in thousands) |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||
|
|
|
|
|
|
|
December 31, |
|
December 31, |
||||||||
Capital Markets |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||||||
Segment (Loss) Income |
$ |
(6,253) |
|
$ |
(8,007) |
|
$ |
194,843 |
|
$ |
81,602 |
||||||
Operating Revenues Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Trading loss (income) and fair value adjustments on loans |
|
44,041 |
|
|
59,115 |
|
|
(37,070) |
|
|
206,150 |
|||||
|
Fixed Income Spread |
|
7,011 |
|
|
6,927 |
|
|
25,519 |
|
|
22,765 |
|||||
|
Other investment related expenses |
|
— |
|
|
(2,515) |
|
|
12,882 |
|
|
(63,519) |
|||||
|
|
Total Operating Income Adjustments |
|
51,052 |
|
|
63,527 |
|
|
1,331 |
|
|
165,396 |
||||
Segment Operating Income |
$ |
44,799 |
|
$ |
55,520 |
|
$ |
196,174 |
|
$ |
246,998 |
Contacts
Investors
ir@brileyfin.com
(212) 409-2424
Media
press@brileyfin.com
(646) 885-5425
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