Business
B. Riley Financial Provides Fourth Quarter and FY 2022 Earnings Guidance
Estimates Operating Adjusted EBITDA range of $90-100 million for Q4 2022; and $355-$365 million for FY2022 LOS ANGELES, Dec. 27, 2022 /PRNewswire/ -- B. Riley
About this update from Brc Group Holdings, Inc.
[{"type":"text","content":"Estimates Operating Adjusted EBITDA range of $90-100 million for Q4 2022; and $355-$365 million for FY2022\nLOS ANGELES, Dec. 27, 2022 /PRNewswire/ -- B. Riley Financial, Inc. (NASDAQ: RILY) (\"B. Riley\" or the \"Company\") today released fourth quarter guidance for Operating Adjusted EBITDA in the range of $90 million to $100 million. For the full year 2022, the Company estimates Operating Adjusted EBITDA in the range of $355 million to $365 million.\n\n \n \n \n \n \n \n\n \nThe Company estimates investment losses in the range of ($125 million) to ($150 million) for the fourth quarter of 2022, and ($405 million) to ($430 million) for the full year 2022. Estimated mark-to-market investment losses reflect continued softness in small cap markets.\nBryant Riley, Chairman and Co-Chief Executive Officer of B. Riley Financial, commented: \"It is important to put these numbers into perspective. Over the past two years, we will have delivered Operating Adjusted EBITDA in excess of $775 million (at the lower end of our fourth quarter guidance). Meanwhile, returns from our investment portfolio over the past two years are close to flat despite an approximate 11% decline in the Russell 2000 for the same period. Institutional brokerage accounted for 68% of our Operating Adjusted EBITDA in 2021 compared to 15% year-to-date through September 30, 2022. Despite the year-over-year decline in brokerage, our diversified model has created a platform whereby we have been able to deliver our dividend to our shareholders and still maintain sufficient liquidity to take advantage of future opportunities.\"\nGuidance for Operating Adjusted EBITDA includes contributions from Targus since its acquisition on October 19, 2022. The Company reported Operating Adjusted EBITDA of $422.0 million for the full year 2021. Operating Adjusted EBITDA is Adjusted EBITDA (as defined below) excluding trading income (losses) and fair value adjustments on loans and other investment related expenses. Operating Adjusted EBITDA and Adjusted EBITDA are non-GAAP measures; see \"Note Regarding Use of Non-GAAP Financial Measures\" below.\nThe Company estimates total cash and investments to be approximately $2.15 billion at year-end. Total debt is estimated to be approximately $2.5 billion at year-end.\nAs disclosed in previous filings, the Company's investment portfolio comprises...