B. Riley Financial, Inc. held its Third Quarter 2023 Earnings Call, during which they reported record-breaking operating revenues and strong performance across their various business segments. The call included remarks from Bryant Riley, Chairman, Co-Founder and CEO, Tom Kelleher, Co-Founder and Co-CEO, and Phillip Ahn, CFO and COO. Despite reporting a net loss of $76 million primarily due to investment losses, the firm experienced a 48% increase in total revenues for the third quarter of 2023 compared to the same period in 2022, and a 86% increase for the first nine months. The growth in revenue was primarily driven by the Auction and Liquidation segment, Consumer segment, and Financial Consulting segment. Although the quarter was marked by markdowns in the investment portfolio, the platform continued to deliver strong operating results with a total debt of $2.36 billion and total debt net of cash and investments at $311 million at the end of the quarter. Additionally, they paid out a regular quarterly dividend of $1 per share and approved an annual share repurchase plan of up to $50 million of common shares.
Moreover, B. Riley highlighted strengths across its platform, recording the highest Q3 operating revenue and third-highest Q3 operating EBITDA in the company’s history. Additionally, throughout 2023, they remained focused on executing strategic plans and investment in their platform, resulting in a positive year-to-date performance. Their Capital Markets segment contributed operating revenues of $151 million and operating income of $51 million during the third quarter, with a year-over-year increase of over 10% in B. Riley Securities’ revenues and an increase in investment banking fees revenue. They successfully completed key mandates for several repeat clients and anticipated an acceleration in M&A activity going into 2024.
This news article discusses the impressive performance and strategic initiatives undertaken by B. Riley Financial, Inc. during the third quarter of 2023. Despite reporting a net loss primarily due to investment losses, the company experienced a significant increase in total revenues for the quarter and first nine months of 2023. They also highlighted their focus on executing strategic plans and investment in their platform, resulting in a positive year-to-date performance. The firm’s Capital Markets segment also contributed to their strong performance, with B. Riley Securities recording a year-over-year increase in revenues and significant growth in investment banking fees revenue. Overall, the unique combination of their businesses and collaborative team approach has enabled them to deliver against the backdrop of challenging markets, while remaining focused on extending and strengthening their market share and building out their execution capabilities.
