NASDAQ$RILY

BRC Group Holdings Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

B. Riley reported a net loss and total revenues for Q4 2022.

B. Riley Financial reported Q4 2022 results, including a GAAP net loss of $59.4 million and total revenues of $326.8 million. The company's operating adjusted EBITDA was $101.8 million, exceeding the guided range. Despite a challenging Capital Markets environment, the company delivered the second-best year of Operating Adjusted EBITDA in its firm’s history. The company declared a quarterly dividend of $1.00 per common share.

  • Q4 2022 GAAP Net Loss was ($59.4 million).
  • Q4 2022 Total Revenues reached $326.8 million.
  • Q4 2022 Operating Revenues were $450.4 million.
  • Q4 2022 Operating Adjusted EBITDA was $101.8 million, surpassing guidance.

Headline financials

Total Revenue

$327M

Previous: $422M-22.6%
EPS (adj)

-$1.46

Previous: $2.70-154.1%
Net Income

-$59.4M

Previous: $62.2M-195.5%
Operating Income

-$683K

Previous: $87.2M-100.8%
Gross Profit

$220M

Previous: $391M-43.9%
Cash & Equivalents

$269M

Previous: $279M-3.7%
Total Assets

$6.11B

Previous: $5.85B+4.4%
Stock-Based Comp

$15.3M

Previous: $12.5M+22.5%

Revenue & EPS history

B. Riley · Revenue · Quarterly

$327M

Q4 2022-22.6%vs Q4 2021

Revenue by segment

B. Riley · $233M total across 4 segments · Q4 2022

  • Consumer Products
    $120M
  • Communications
    $87.9M
  • Wealth Management
    $46.2M-55.9%
  • Capital Markets
    -$21.1M-108.6%

Forward guidance

B. Riley anticipates continued momentum from late Q4 into Q1, particularly in Capital Markets, Liquidation, and Real Estate practices. The company expects to grow organically and through acquisitions, focusing on operational efficiencies and long-term strengthening of its market position.

Tailwinds

  • Capital Markets began to improve late in Q4 and this momentum has continued into Q1.
  • Increased activity in Liquidation and Real Estate practices benefitting from pockets of distress.
  • The investment portfolio is well-positioned heading into 2023.
  • Attractive opportunities to deploy excess liquidity in ways that competitively advantage clients.
  • Focus on supporting clients by helping them deliver on their strategic business initiatives.

Headwinds

  • Challenging Capital Markets environment.
  • Investment marks are not immune to broader market fluctuations.
  • Liquidity restrained environment.
  • Non-accrual loans receivable accounted for approximately $7 million of loans receivable, at fair value.
  • Total debt was approximately $2.45 billion at December 31, 2022

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 Q4 2022

Historical avgQ4 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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