NASDAQ$RILY

BRC Group Holdings Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

B. Riley reported strong Q3 2021 results driven by investment banking, wealth management, principal investments, and brands. The company declared a total dividend of $4.00 per common share and approved a new share repurchase plan of up to $50 million.

B. Riley Financial reported a net income of $48.6 million, or $1.69 diluted EPS, for the third quarter of 2021. Total revenues increased to $381.5 million and the company declared a total third quarter dividend of $4.00 per common share. The Board of Directors approved a new annual share repurchase plan of up to $50 million.

  • Net income available to common shareholders was $48.6 million, or $1.69 diluted earnings per share (EPS).
  • Total revenues increased to $381.5 million.
  • Capital Markets segment revenues increased 58% to $178.7 million.
  • Combined wealth management assets under management were approximately $32 billion as of September 30, 2021.

Headline financials

Total Revenue

$382M

Previous: $226M+68.6%
EPS (adj)

$2.10

Previous: $2.05+2.4%
Capital Expenditures

-$552K

Previous: -$1.52M+63.6%
Free Cash Flow

$50M

Previous: $46.9M+6.7%
Net Income

$50.6M

Previous: $48.4M+4.5%
Operating Income

$96.7M

Previous: $83.5M+15.9%
Gross Profit

$382M

Previous: $226M+68.6%
Cash & Equivalents

$378M

Previous: $170M+122.9%
Total Assets

$5.05B

Previous: $2.3B+119.4%
Stock-Based Comp

$9.37M

Previous: $4.78M+96.2%

Revenue & EPS history

B. Riley · Revenue · Quarterly

$382M

Q3 2021+68.6%vs Q3 2020

Revenue by segment

B. Riley · $298M total across 2 segments · Q3 2021

  • Capital Markets
    $179M
  • Wealth Management
    $119M

Forward guidance

B. Riley Financial aims to utilize cash flows to enhance the business, make accretive acquisitions, and return capital to shareholders. The company will continue to seek opportunities to improve the capital structure in the coming quarters.

Tailwinds

  • Continue to utilize cash flows to enhance our business
  • Make accretive acquisitions
  • Return capital to our shareholders
  • Continue to seek opportunities to improve our capital structure
  • Reducing our debt expense by redeeming two of our higher rate corporate bonds and issuing debt at a rate that is over 200 basis points lower.

Headwinds

  • Risks associated with the unpredictable and ongoing impact of the COVID-19 pandemic
  • Risks described in B. Riley Financial, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2020
  • Risks described in our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2021
  • Risks described in our Quarterly Reports on Form 10-Q for the quarters ended June 30, 2021 under the captions “Risk Factors”
  • Risks described in our Quarterly Reports on Form 10-Q for the quarters ended June 30, 2021 under the captions “Management's Discussion and Analysis of Financial Condition and Results of Operations”

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 Q3 2021

Historical avgQ3 2021

+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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