B. Riley Financial Reports Preliminary Q4 2024 Results Amid Transformative Changes
B. Riley Financial, Inc., a company listed on NASDAQ under the ticker symbol RILY, has recently shared its preliminary estimates for the financial results of the fourth quarter ending December 31, 2024. As a diversified financial services provider, the company's release offers investors and stakeholders insight into its evolving strategies and financial health. This update is particularly noteworthy given the significant shifts the company has undergone in recent months.
In terms of net income available to common shareholders, B. Riley anticipates figures ranging from $48 million to $68 million, which equates to $1.57 to $2.22 per diluted share. This expected net income includes a considerable contribution from discontinued operations, mainly resulting from selling a majority stake in the Great American businesses, projected to generate between $236 million and $247 million in income. However, the company has also acknowledged potential net losses from its continued operations, expected to be between $178 million and $187 million.
Bryant Riley, the Chairman and Co-CEO of the company, indicated that this quarter marks a significant pivot in the company's strategic direction. He explained that efforts over the past year, including a reduction of more than $700 million in debt, have allowed the firm to retire its Nomura facility. This restructuring is viewed as laying the groundwork for a more focused approach on core business activities and moving beyond previous losses associated with principal investments.
The reported losses from continuing operations stem from various exceptional expenses, including legal fees, transaction costs, and restructuring outlays. Bryant emphasized that these expenditures are expected to decrease throughout 2025 as the company continues its path to recovery. The fourth quarter results reflect the ongoing changes and recovery strategies B. Riley is implementing to realign its business model towards more profitable avenues.
Aside from the anticipated net income, notable figures include predicted operating adjusted EBITDA from continuing operations of about $12 million to $14 million and cash reserves of approximately $257 million by the end of 2024, comprised of cash and cash equivalents totaling around $156 million and $101 million in restricted cash, purposely set aside for the company’s February 2025 senior notes, which were redeemed shortly after the year-end.
B. Riley's debt stands at approximately $1.78 billion, with net debt, after accounting for cash and investments, reducing by about $221 million from the previous quarter to approximately $991 million. The company's financial maneuvers result from a strategic choice to reduce liabilities faster while trying to harness existing assets for growth.
The firm is poised to further discuss these results during an investor conference call held on March 3, 2025. This interactive session is open to investors and will be available through an audio webcast on the company's investor relations site. During this call, Riley and his team are expected to share insights on the current financial standing and future prospects, alongside the implications of their ongoing strategic adjustments.
B. Riley Financial has built a reputation as a comprehensive financial services organization, offering diverse solutions tailored to the needs of its clients across various industries, thereby enhancing its market presence. It focuses on critical services such as investment banking, brokerage, investment management, and risk evaluation through its extensive array of subsidiary offerings.
Investors looking for updates on B. Riley will find the upcoming report and investor call crucial, especially as the firm emphasizes recovery strategies and core business advancements during a time when many companies are navigating market fluctuations and economic uncertainty. As steps are taken to streamline operations and stabilize the company's financial health, many will be observing the actions of B. Riley Financial closely in the coming months.
In terms of net income available to common shareholders, B. Riley anticipates figures ranging from $48 million to $68 million, which equates to $1.57 to $2.22 per diluted share. This expected net income includes a considerable contribution from discontinued operations, mainly resulting from selling a majority stake in the Great American businesses, projected to generate between $236 million and $247 million in income. However, the company has also acknowledged potential net losses from its continued operations, expected to be between $178 million and $187 million.
Bryant Riley, the Chairman and Co-CEO of the company, indicated that this quarter marks a significant pivot in the company's strategic direction. He explained that efforts over the past year, including a reduction of more than $700 million in debt, have allowed the firm to retire its Nomura facility. This restructuring is viewed as laying the groundwork for a more focused approach on core business activities and moving beyond previous losses associated with principal investments.
The reported losses from continuing operations stem from various exceptional expenses, including legal fees, transaction costs, and restructuring outlays. Bryant emphasized that these expenditures are expected to decrease throughout 2025 as the company continues its path to recovery. The fourth quarter results reflect the ongoing changes and recovery strategies B. Riley is implementing to realign its business model towards more profitable avenues.
Aside from the anticipated net income, notable figures include predicted operating adjusted EBITDA from continuing operations of about $12 million to $14 million and cash reserves of approximately $257 million by the end of 2024, comprised of cash and cash equivalents totaling around $156 million and $101 million in restricted cash, purposely set aside for the company’s February 2025 senior notes, which were redeemed shortly after the year-end.
B. Riley's debt stands at approximately $1.78 billion, with net debt, after accounting for cash and investments, reducing by about $221 million from the previous quarter to approximately $991 million. The company's financial maneuvers result from a strategic choice to reduce liabilities faster while trying to harness existing assets for growth.
The firm is poised to further discuss these results during an investor conference call held on March 3, 2025. This interactive session is open to investors and will be available through an audio webcast on the company's investor relations site. During this call, Riley and his team are expected to share insights on the current financial standing and future prospects, alongside the implications of their ongoing strategic adjustments.
B. Riley Financial has built a reputation as a comprehensive financial services organization, offering diverse solutions tailored to the needs of its clients across various industries, thereby enhancing its market presence. It focuses on critical services such as investment banking, brokerage, investment management, and risk evaluation through its extensive array of subsidiary offerings.
Investors looking for updates on B. Riley will find the upcoming report and investor call crucial, especially as the firm emphasizes recovery strategies and core business advancements during a time when many companies are navigating market fluctuations and economic uncertainty. As steps are taken to streamline operations and stabilize the company's financial health, many will be observing the actions of B. Riley Financial closely in the coming months.
Topics Financial Services & Investing）
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