NASDAQ$RILY

BRC Group Holdings Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

B. Riley's Q1 2024 results reflected a mix of operating performance and strategic adjustments.

B. Riley Financial reported total revenues of $343 million for Q1 2024, compared to $432 million in Q1 2023. The company experienced a net loss available to common shareholders of $51 million, influenced by investment-related losses. However, operating income, adjusted for specific items, remained relatively flat compared to the previous year. The company declared a quarterly dividend of $0.50 per share.

  • B. Riley Advisory Services delivered its strongest Q1 results in the firm’s history.
  • B. Riley Securities benefitted from a steady dealmaking environment.
  • Wealth Management operating margins have continued to improve over the last two years.
  • The company monetized investments to retire bonds and repay debt, redeploying capital into new opportunities.

Headline financials

Total Revenue

$343M

Previous: $432M-20.6%
EPS

-$1.71

Previous: $0.51-435.3%
Capital Expenditures

-$913K

Previous: -$1.7M+46.2%
Free Cash Flow

-$50.1M

Previous: $15.5M-423.9%
Net Income

-$49.2M

Previous: $17.2M-386.6%
Operating Income

-$3.43M

Previous: $84.9M-104.0%
Gross Profit

$303M

Previous: $384M-21.1%
Cash & Equivalents

$191M

Previous: $210M-9.2%
Total Assets

$5B

Previous: $6.62B-24.5%
Stock-Based Comp

$8.68M

Previous: $13.7M-36.8%

Revenue & EPS history

B. Riley · Revenue · Quarterly

$343M

Q1 2024-20.6%vs Q1 2023

Revenue by segment

B. Riley · $232M total across 4 segments · Q3 2023

  • Communications
    $85M+9.1%
  • Consumer Products
    $55.1M
  • Wealth Management
    $47.2M-2.0%
  • Capital Markets
    $45M-74.9%

Forward guidance

B. Riley is progressing with a strategic review for its Great American Group retail liquidation and appraisal businesses and is pleased with the interest received. The company remains focused on addressing the needs of its clients, partners, and employees.

Tailwinds

  • Strategic review process for Great American Group retail liquidation and appraisal businesses is progressing well.
  • Company is pleased with the interest seen in the strategic review process.
  • Company remains focused on addressing the needs of its clients.
  • Company remains focused on addressing the needs of its partners.
  • Company remains focused on addressing the needs of its employees.

Headwinds

  • The company experienced unusual events over the last several months.
  • First quarter of 2024 reflected $30 million of unrealized non-cash investment losses.
  • Company incurred incremental costs related to the filing of its 10-K, internal review and subsequent independent investigation undertaken by our Board’s Audit Committee.
  • Targus is continuing to work through macro headwinds.
  • Decrease in overall Capital Markets segment revenues.

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 2024

Historical avgQ1 2024

+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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