NASDAQ$RILY

BRC Group Holdings Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

B. Riley Financial's results for Q2 2022 were announced, revealing a GAAP revenue of $42.7 million and an operating revenue of $266.6 million. The company experienced a GAAP net loss of $142.2 million, while the operating adjusted EBITDA stood at $74.2 million. A quarterly dividend of $1.00 per common share was declared.

B. Riley Financial reported a GAAP revenue of $42.7 million and operating revenues of $266.6 million for Q2 2022. The company experienced a GAAP net loss of $142.2 million, driven by investment losses, but achieved an operating adjusted EBITDA of $74.2 million. A quarterly dividend of $1.00 per common share was declared.

  • GAAP Revenues were $42.7 million.
  • Operating Revenues were $266.6 million.
  • GAAP Net Loss was ($142.2 million).
  • Operating Adjusted EBITDA was $74.2 million.

Headline financials

Total Revenue

$42.7M

Previous: $337M-87.3%
EPS (adj)

-$4.36

Previous: $2.85-253.0%
Capital Expenditures

-$896K

Previous: -$288K-211.1%
Free Cash Flow

-$141M

Previous: $74.8M-288.5%
Net Income

-$140M

Previous: $75.1M-286.6%
Operating Income

-$159M

Previous: $110M-244.1%
Gross Profit

$40.7M

Previous: $336M-87.9%
Cash & Equivalents

$216M

Previous: $297M-27.3%
Total Assets

$5.88B

Previous: $4.11B+43.1%
Stock-Based Comp

$14.2M

Previous: $8.61M+65.0%

Revenue & EPS history

B. Riley · Revenue · Quarterly

$42.7M

Q2 2022-87.3%vs Q2 2021

Revenue by segment

B. Riley · $240M total across 4 segments · Q2 2022

  • Capital Markets
    $130M
  • Wealth Management
    $62.4M
  • Communications
    $42.5M
  • Consumer Products
    $5.2M

Forward guidance

B. Riley remains optimistic about the total return potential of its investment portfolio and ability to capitalize on opportunities presented by the current market dislocation.

Tailwinds

  • Strategic investments help competitively advantage clients.
  • Cash and investment portfolio has been diversified to balance allocation between debt and equity-related investments.
  • Credit positions enable attractive spreads with minimal impairments.
  • Investment portfolio focused on public and private small-cap companies with high conviction in capital appreciation.
  • Securities in investment portfolio have exceeded the Russell 2000 Index in multiple market cycles.

Headwinds

  • Second quarter results demonstrated the relative strength and ability of non-cyclical businesses to steadily perform amid disruptive markets.
  • Despite the markdown on investments and declines in underwriting business, the dynamic platform has demonstrated continued resiliency.
  • GAAP net loss of ($43.4 million) over the trailing twelve-month period.
  • Results for the quarter were impacted by declines in investment banking and institutional brokerage activities that were consistent with the industry-wide reduction in deal activity.
  • Wealth Management revenues fell due to reduced activity and the impact of a settlement related to a legacy National Securities regulatory matter which pre-dated the Company’s acquisition in 2021.

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 Q2 2022

Historical avgQ2 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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