NASDAQ$RILY

BRC Group Holdings Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

B. Riley's Q2 2023 results were released, highlighting solid performance despite capital market challenges and reaffirming Q3 2023 guidance.

B. Riley Financial reported its Q2 2023 results, showing solid performance despite a challenging capital markets period. The company reaffirmed its Q3 2023 guidance for operating adjusted EBITDA of at least $105 million. Increased revenues were primarily driven by investment gains, recent acquisitions, and increased revenues from retail liquidation, financial consulting and appraisal, in addition to an increase in interest income from loans and securities lending.

  • The company reaffirmed its guidance for operating adjusted EBITDA of at least $105 million for the third quarter of 2023.
  • Investment gains were $42.4 million for the quarter.
  • Cash and investments totaled $1.92 billion, including cash and cash equivalents of $108 million.
  • The company expanded its consumer and TMT industry vertical coverage through the addition of multiple senior investment bankers and strategic hires in its equity research division.

Headline financials

Total Revenue

$406M

Previous: $42.7M+851.5%
EPS (adj)

$1.55

Previous: -$4.36+135.6%
Capital Expenditures

-$4.76M

Previous: -$896K-430.9%
Free Cash Flow

$41.6M

Previous: -$141M+129.5%
Net Income

$46.4M

Previous: -$140M+133.1%
Operating Income

$83M

Previous: -$159M+152.3%
Gross Profit

$366M

Previous: $40.7M+799.0%
Cash & Equivalents

$108M

Previous: $216M-50.2%
Total Assets

$6.25B

Previous: $5.88B+6.4%
Stock-Based Comp

$10.5M

Previous: $14.2M-26.1%

Revenue & EPS history

B. Riley · Revenue · Quarterly

$406M

Q2 2023+851.5%vs Q2 2022

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 reaffirmed its guidance for operating adjusted EBITDA of at least $105 million for the third quarter of 2023.

Tailwinds

  • Meaningful increase of client activity across capital markets
  • Strong retail liquidation activity
  • Increased consulting engagements
  • Increase appraisal activity
  • Overall business is at a near-term inflection

Headwinds

  • Challenging capital markets period
  • Nominal contribution from investment banking
  • Market dynamics have created a favorable environment for recruiting talent
  • Need to continue to invest in people and platform to meet growing client demand
  • Exposure to risks described in the company's periodic filings with the SEC

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 2023

Historical avgQ2 2023

+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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