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B Riley Financial : Reports Fourth Quarter and Full Year 2021 Results – Form 8-K |

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B. Riley Financial Reports Fourth Quarter and Full Year 2021 Results

Q4 2021 Net income of $62.2 million, $2.08 diluted EPS

Q4 2021 Total revenues of $422.1 million, total adjusted EBITDA of $138.0 million

Q4 2021 Operating revenues of $353.3 million, operating adjusted EBITDA of $106.1 million

Strong earnings driven by investment banking,
in addition to wealth management, principal investments, and brands

Declares regular quarterly dividend of $1.00 per common share

LOS ANGELES, February 23, 2022 – B. Riley Financial, Inc. (NASDAQ: RILY), a diversified financial services company, today announced results for the three- and twelve-month period ended December 31, 2021.

Fourth Quarter 2021 Financial Highlights

Net income of $62.2 million, $2.08 diluted EPS
Total revenues of $422.1 million
Total adjusted EBITDA (1) of $138.0 million
Operating revenues (2) of $353.3 million
Operating adjusted EBITDA (3) of $106.1 million

Full Year 2021 Financial Highlights

Net income of $437.6 million, $15.09 diluted EPS
Total revenues of $1,740.6 million
Total adjusted EBITDA (1) of $762.5 million
Operating revenues (2) of $1,353.9 million
Operating adjusted EBITDA (3) of $422.0 million
Strengthened wealth management, asset management and M&A capabilities
Significantly lowered cost of debt
Declared dividends of $10.00 per common share for FY 2021

Bryant Riley, Chairman and Co-Chief Executive Officer of B. Riley Financial, said: “We are pleased to report another strong quarter and full year of results thanks to our talented and ambitious team. By adding to our wealth management, asset management and M&A businesses through acquisition and hiring exceptional talent in all areas, we continue to provide unique capabilities to our clients and partners. In 2021, we strengthened our balance sheet and reduced our cost of capital, allowing us the flexibility to invest across the platform and return capital to shareholders with share buybacks and dividend payments. Over the past four quarters, B. Riley has declared $10.00 in common dividends thanks to the strong cash flow of our episodic and recurring businesses.”

Tom Kelleher, Co-Chief Executive Officer of B. Riley Financial, added: “Operating revenue for the full year 2021 increased 70% to $1.4 billion compared to $799 million for the full year 2020. Our efforts to cross-sell throughout the platform is gaining traction and creating opportunities. Furthermore, we have continued to expand our platform as we recently welcomed the addition of FocalPoint Securities, which will enhance our firm’s investment banking efforts, with a specific emphasis on M&A advisory and financial sponsors. We also completed the purchase of a portfolio of loan receivables from Badcock Home Furniture which we believe will add an attractive and consistent income stream.”

www.brileyfin.com | NASDAQ: RILY 1

Mr. Riley continued: “Over the past couple of months capital markets have slowed significantly. While we have been a large beneficiary of these markets we also recognize the strength and differentiation of our business model if they are to continue to soften. When we took the business public in 2014 our business was highly correlated to two cyclical businesses, brokerage and liquidation. Since that time, we have taken aggressive steps to diversify the cash flow profile of our company by adding several non-correlated companies such as our communications, brands and financial consulting businesses in addition to our recent accounts receivables portfolio. In addition, the credit and current income portion of our investment portfolio provides approximately $85 million of interest and dividend income. Combined, our non-cyclical businesses and assets provide enough cash flow to cover the vast majority of our annual operating expenses, interest and dividend. Clearly, we expect strong profits from B. Riley Securities this year and every year. As a reminder, that business has generated a majority of our capital markets operating segment income in each of the last three years. However, we believe our diversification is a competitive advantage and will enable us to invest when others may need to contract.”

Declaration of Common Dividend

B. Riley has declared a regular quarterly cash dividend of $1.00 per common share which is payable on or about March 23 to common stockholders of record as of March 9. Including this $1.00 regular dividend, the Company will have paid $10.00 in common dividends to shareholders related to the FY 2021 period.

Share Repurchases

Under the prior share repurchase plan, effective as of October 27, 2020, the Company repurchased approximately 495,000 of its common shares for an aggregate amount of approximately $12.6 million through December 31, 2021. During the fourth quarter of 2021, B. Riley’s Board of Directors approved a new annual share repurchase program for up to $50 million.

Financial Summary

Three Months Ended Twelve Months Ended
December 31, December 31,
(Dollars in thousands, except for share data) 2021 2020 2021 2020
Net income available to common shareholders $ 62,182 $ 170,114 $ 437,597 $ 200,438

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