LOS ANGELES - B. Riley Financial, Inc. (NASDAQ: RILY), a diversified financial services firm, announced a net loss of $51 million for the first quarter ended March 31, 2024, primarily due to non-cash, unrealized investment losses. Despite the loss, the company declared a quarterly dividend of $0.50 per common share, payable on or about June 11, 2024, to shareholders of record as of May 27, 2024.
The reported net loss contrasts with the net income of $15 million for the same period in the previous year. The loss was driven by approximately $59 million of investment-related losses, which included non-cash trading loss on investments and fair value adjustments on loans, along with realized and unrealized losses on investments.
Total revenues for the quarter stood at $343 million, down from $432 million in the first quarter of 2023. Operating revenues were $379 million, slightly down from $389 million in the prior year. Operating adjusted EBITDA was $66 million compared to $88 million for the same period last year.
The company's balance sheet showed $191 million in cash and cash equivalents, with total cash and investments totaling $1.61 billion as of the quarter's end. B. Riley also retired $115 million of its 6.75% 2024 Senior Notes and repaid $57 million of bank debt facilities and notes payable.
Bryant Riley, Chairman and Co-Chief Executive Officer, stated that the company had a solid quarter from an operating perspective despite the challenges faced over the last several months. He highlighted the firm's focus on running the business in the best interest of stockholders, addressing the needs of clients, partners, and employees.
Tom Kelleher, Co-Chief Executive Officer, remarked on the strong Q1 results from B. Riley Advisory Services, driven by increased demand for appraisals and bankruptcy restructuring, litigation consulting, and real estate services. He also noted the steady cash flow from the Communications portfolio during the quarter.
The company's financial consulting segment saw a 40% revenue increase to $35 million, from $25 million in the first quarter of 2023, largely due to an increase in appraisal engagements and bankruptcy and litigation consulting assignments.
InvestingPro Insights
B. Riley Financial, Inc. (NASDAQ: RILY) has shown resilience amidst a challenging market environment, as evidenced by a significant return over the last week. The company's stock has delivered an impressive 8.7% price total return in the past week, and even more notable is the 68.45% return over the last month, with a robust 98.01% return over the last three months. These figures highlight the stock's ability to rebound and provide substantial returns to investors over short periods, which is a positive sign for those looking at recent performance.
Investors should note that B. Riley Financial has a history of maintaining dividend payments, having done so for 11 consecutive years. This consistency is reflected in the recent dividend declaration, which comes despite the reported net loss for the quarter. The company's dividend yield stands at a healthy 5.84%, offering a potential income stream for shareholders. Furthermore, B. Riley's liquid assets exceed its short-term obligations, suggesting a stable financial position that supports its ongoing dividend payments.
While the company has faced challenges, as indicated by the net loss in the first quarter of 2024, B. Riley's market capitalization of $969.39 million and a fair value estimation of $35.08 according to InvestingPro, suggests that the market recognizes its underlying value. The InvestingPro platform offers additional insights, with over 10 InvestingPro Tips available for B. Riley Financial, providing a deeper dive into the company's performance and prospects. For those interested in exploring these tips, visit https://www.investing.com/pro/RILY and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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