B. Riley Financial reports preliminary Q4 results

LOS ANGELES - B. Riley Financial, Inc. (NASDAQ: RILY), a diversified provider of financial services, disclosed preliminary financial outcomes for the fourth quarter of 2024, indicating a net income available to common shareholders between $48 million and $68 million. The company’s stock, which has shown significant volatility with a 52-week range of $2.73 to $40.09, has recently demonstrated strong momentum with a 40% gain in the past week. According to InvestingPro analysis, the company maintains a "GOOD" overall financial health score despite recent challenges. This translates to a diluted net income per share ranging from $1.57 to $2.22, inclusive of substantial income from discontinued operations due to the divestiture of a majority interest in the Great American businesses.

The company experienced a net loss from continuing operations estimated between $178 million and $187 million. This includes expected impairment charges of goodwill and intangible assets totaling $73 million to $79 million, as well as $49 million in trading and investment losses. Despite these losses, operating adjusted EBITDA from continuing operations is projected to be between $12 million and $14 million. Notably, B. Riley maintains a strong dividend program with an impressive 31.32% yield and has maintained dividend payments for 11 consecutive years, as revealed by InvestingPro data.

B. Riley also reported a reduction in total debt, which stood at $1.78 billion as of December 31, 2024. After accounting for cash and investments, the net debt was approximately $991 million, marking a decrease of $221 million from the previous quarter.

The company’s chairman and co-CEO, Bryant Riley, noted the quarter as a turning point, with a focus shift from managing losses in principal investments to prioritizing core businesses. Riley highlighted the monetization of non-core assets and liability management as key progress areas, despite unusual expenses incurred during the quarter.

The preliminary financial results are unaudited and subject to the completion of the company’s annual financial audit. B. Riley’s Annual Report on Form 10-K is expected to be filed by March 17, 2025.

B. Riley Financial will conduct an investor call to discuss its business and these preliminary financial results. The live audio webcast of the call, held today, will be available for replay until March 14.

This financial update is based on a press release statement and provides investors with a snapshot of B. Riley Financial’s performance as it navigates through its operational and financial restructuring. The company currently appears undervalued according to InvestingPro Fair Value calculations. For deeper insights into B. Riley’s financial health and future prospects, investors can access comprehensive analysis and 10+ additional ProTips through InvestingPro’s detailed research reports, available for over 1,400 US stocks.

In other recent news, B. Riley Financial, Inc. has announced the completion of its sale of Atlantic Coast Recycling, LLC for approximately $70 million, which is expected to result in a gain of around $30 million in its first-quarter financial results. The company has also secured a new $160 million debt facility with Oaktree Capital Management, which will be used to retire existing debt and invest in the liquidation of JOANN fabric and crafts stores. This strategic move is supported by B. Riley’s 44% ownership in GA Group, the exclusive agent for the liquidation of JOANN’s assets. Additionally, B. Riley Financial has redeemed its 6.375% Senior Notes due 2025, reflecting its adherence to financial obligations. The company has also suspended dividends on its 6.875% Series A and 7.375% Series B preferred stocks, with unpaid dividends set to accumulate until fully paid. These developments come as B. Riley aims to recover from previous investment losses, including the bankruptcy of Franchise Group (NASDAQ:FRG). The firm is scheduled to report its preliminary full-year 2024 results on March 3, 2024, followed by a conference call and Q&A session.

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