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LOS ANGELES - B. Riley Securities, a subsidiary of B. Riley Financial (NASDAQ:RILY), announced today the appointment of Brendon Philipps as Managing Director to lead their Capital Structure Advisory and Liability Management efforts. Philipps, with nearly 15 years of experience in the field, joins from Guggenheim Partners.
The hiring comes at a time when middle market companies are increasingly seeking expertise to navigate complex capital environments and restructuring scenarios. Philipps brings a wealth of experience, having been involved in significant transactions such as the Robertshaw restructuring case in the Southern District of Texas.
Andy Moore, CEO of B. Riley Securities, expressed enthusiasm about Philipps' arrival, noting his deep experience and potential contribution to the firm's strategy. Philipps also commented on his new role, highlighting the opportunities he sees for value maximization through capital structure optimization in the current economic climate.
Philipps' background includes roles at KLS Diversified Asset Management and the Restructuring practices of Millstein & Co. and Rothschild. He also holds an MBA from Carnegie Mellon University's Tepper School of Business and a BA in Economics from the University of California, Santa Cruz.
B. Riley Securities is known for providing a comprehensive suite of investment banking and capital markets services, with over 25 years of experience in the sector. The firm's services range from M&A advisory to corporate restructuring and recapitalization, catering to a diverse set of clients and industries.
This move by B. Riley Securities is part of its ongoing effort to enhance its investment banking platform and advisory services. The information on this appointment is based on a press release statement.
In other recent news, B. Riley Financial has been making significant financial moves. The company recently disclosed an estimated net loss between $435 million to $475 million for the second quarter of 2024, attributed to non-cash impairment charges and write-downs. Despite this, B. Riley maintained an operating adjusted EBITDA between $50 million to $55 million, reflecting the resilience of its core businesses.
B. Riley Financial also unveiled plans to sell a majority stake in its Great American Group and secure financing for its brand portfolio. The company aims to reduce its debt significantly by the end of 2024 through these transactions. Furthermore, B. Riley has received a buyout proposal from its founder, chairman, and co-CEO, Bryant Riley, to take the company private. The offer is to purchase all outstanding shares not already owned by Riley for $7.00 each.
These recent developments have been triggered by various factors, including a $28 million impairment charge for Targus, a $25 million charge related to deferred tax benefits, and a significant write-down of the Freedom VCM investment. As part of its strategic focus, B. Riley has suspended its dividend and is reviewing strategic alternatives for Great American Group. Despite these challenges, B. Riley is refocusing on its core financial services business and is committed to maximizing value from its existing principal positions.
InvestingPro Insights
In the context of B. Riley Financial's (NASDAQ:RILY) strategic appointment and its focus on capital structure advisory, InvestingPro data reveals some critical financial metrics. As of the last twelve months leading up to Q1 2024, B. Riley Financial reported a revenue growth of 19.73%, indicating a robust increase in their business activities. However, the company's gross profit margin stood at -1.24%, underscoring the challenges it faces in terms of profitability. The firm's market capitalization has adjusted to $175.71M, reflecting the current valuation of the company in the market.
From an investor's perspective, B. Riley Financial pays a significant dividend, with a yield of 34.48% as of the latest data, which is particularly attractive for income-focused investors. This commitment to returning value to shareholders is further evidenced by the company maintaining dividend payments for 11 consecutive years, a testament to its financial discipline and shareholder-friendly approach. Yet, the stock has experienced high price volatility, which might be a point of consideration for risk-averse investors.
For those who are keen to delve deeper into B. Riley Financial's financial health and stock performance, additional InvestingPro Tips are available. These include insights on the stock's RSI indicating it is in oversold territory, and the fact that liquid assets exceed short-term obligations, suggesting a solid liquidity position. Interested readers can find a total of 10 additional InvestingPro Tips to gain a more nuanced understanding of B. Riley Financial's financial outlook by visiting https://www.investing.com/pro/RILY.
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