NASDAQ$RILY

BRC Group Holdings Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

B. Riley Financial reported first quarter results reflecting resilient performance offset by challenges in underwriting and investment portfolio.

B. Riley Financial's Q1 2022 results showed resilience despite a challenging environment for underwriting and investment portfolio. The company reported a net loss of $12.1 million, or ($0.43) diluted EPS. The Capital Markets segment experienced a revenue decrease, while the Wealth Management segment saw an increase. The company ended the quarter with $213.6 million in cash and equivalents.

  • Net loss available to common shareholders was $12.1 million, or ($0.43) diluted EPS.
  • Capital Markets segment revenues decreased 87% year-over-year to $61.6 million.
  • Wealth Management segment revenues increased to $77.5 million from $67.9 million in prior year period.
  • Principal Investments segment revenues increased to $32.7 million from $20.5 million in the prior year quarter.

Headline financials

Total Revenue

$206M

Previous: $600M-65.7%
EPS (adj)

$0.24

Previous: $9.19-97.4%
Capital Expenditures

-$176K

Previous: -$101K-74.3%
Free Cash Flow

-$10.2M

Previous: $256M-104.0%
Net Income

-$10.1M

Previous: $257M-103.9%
Operating Income

$4.72M

Previous: $373M-98.7%
Gross Profit

$203M

Previous: $600M-66.1%
Cash & Equivalents

$214M

Previous: $238M-10.1%
Total Assets

$5.25B

Previous: $4.11B+27.7%
Stock-Based Comp

$17M

Previous: $5.53M+207.9%

Revenue & EPS history

B. Riley · Revenue · Quarterly

$206M

Q1 2022-65.7%vs Q1 2021

Revenue by segment

B. Riley · $139M total across 2 segments · Q1 2022

  • Wealth Management
    $77.5M
  • Capital Markets
    $61.6M

Forward guidance

B. Riley expects to see a more material benefit from M&A assignments. The company anticipates the acquisitions of Lingo Management and Bullseye Telecom will be completed this summer, further enhancing uncorrelated, free cash flows.

Tailwinds

  • Expect to see a more material benefit from M&A assignments.
  • Capital management business continues to show strength.
  • Direct lending activity continues to deliver strong performance.
  • Acquisitions of Lingo Management and Bullseye Telecom should further enhance uncorrelated, free cash flows.
  • Competitive advantages of diversified platform will deliver long-term sustainable growth and continued strong returns to shareholders.

Headwinds

  • Underwriting business faced a challenging environment.
  • Investment portfolio faced a challenging environment.
  • Wealth Management segment loss reflecting reduced market activity combined with the impact of a settlement charge related to litigation prior to B. Riley’s acquisition of National Holdings in 2021.
  • Segment income decreased to $8.8 million up from $7.5 million.
  • Capital Markets segment revenues decreased 87% year-over-year to $61.6 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+2.4%

Avg return

Earnings day

+2.6%

Avg return

5 days after

+2.9%

Avg return

30 days after

51%

33 / 65 earnings

Positive

+30.0%

Q1 2011

Best reaction

-17.5%

Q3 2013

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.9%-2.8%-5.6%
Q4 2025+2.1%+0.1%+22.7%
Q3 2025+1.2%+19.5%-8.3%
Q1 2025-15.3%-14.7%-0.2%
Q4 2024+15.0%+4.0%+3.5%
Q3 2024-15.5%-26.1%-39.1%
Q2 2024+19.0%+26.6%+7.8%
Q1 2024-16.7%-10.3%-39.8%
Q4 2023-11.5%+10.5%+11.1%
Q3 2023-13.5%-36.7%-27.3%
Q2 2023-8.9%-4.5%-15.6%
Q1 2023+27.5%+36.2%+30.3%
Q4 2022-5.5%+1.6%-9.5%
Q3 2022+9.1%+9.1%+15.0%
Q2 2022+1.5%+5.4%+2.3%
Q1 2022-15.2%-4.5%+3.2%
Q4 2021-7.2%-5.5%+12.0%
Q3 2021+15.8%+21.7%+25.8%
Q2 2021+1.1%-2.4%+0.8%
Q1 2021-5.6%+5.7%-0.2%
Q4 2020+12.8%+12.9%-6.7%
Q3 2020+6.4%+12.9%+48.3%
Q2 2020+5.2%+11.4%+11.6%
Q1 2020+5.2%+0.8%+34.1%
Q4 2019-2.9%-7.6%-33.9%
Q3 2019+15.5%+21.9%+19.9%
Q2 2019+8.3%+6.3%+12.2%
Q1 2019+4.5%+7.8%+9.4%
Q4 2018-2.9%-3.3%-1.3%
Q3 2018+0.3%-3.9%-7.1%
Q2 2018+0.5%+0.2%+4.8%
Q1 2018+8.7%+6.9%+5.2%
Q4 2017+1.6%+1.9%+2.7%
Q3 2017+0.3%+3.1%+13.3%
Q2 2017-6.8%-14.6%-11.1%
Q1 2017-0.3%-2.4%+5.8%
Q4 2016+4.5%+3.4%+3.5%
Q3 2016+0.0%+10.8%+9.9%
Q2 2016+0.3%+0.5%+4.7%
Q1 2016+0.6%
Q4 2015+0.0%
Q3 2015-1.5%
Q2 2015+3.6%
Q1 2015+0.0%
Q4 2014+0.0%
Q3 2014+1.9%
Q2 2014-0.4%
Q4 2013+16.8%
Q1 2014+16.8%
Q3 2013-17.5%
Q2 2013-14.9%
Q1 2013+25.6%
Q4 2012+25.6%
Q3 2012-13.4%
Q2 2012+25.0%
Q1 2011+30.0%
Q1 2012+0.0%
Q4 2011+0.0%
Q4 2009+0.0%
Q3 2011-3.5%
Q2 2011+0.0%
Q4 2010+0.0%
Q3 2010+25.0%
Q2 2010+0.0%
Q1 2010-1.2%

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