Financial Data and Key Metrics Changes - For Q4 2024, the company expects net income available to common shareholders to be between $48 million and $68 million, including approximately $236 million to $247 million from discontinued operations related to the divestiture of a majority interest in Great American businesses [30] - Diluted net income per share is projected to be between $1.57 and $2.22, with a net loss from continuing operations estimated at $178 million to $187 million, primarily due to impairment charges and trading losses [31] - Operating adjusted EBITDA from continuing operations is expected to be between $12 million and $14 million, with total debt reported at $1.78 billion, a decline of $221 million from the previous quarter [32] Business Line Data and Key Metrics Changes - The company established a joint venture with Oaktree Capital Management, contributing its appraisal and valuation services, which provided approximately $203 million in cash and a 44% ownership interest in the new entity [9] - The company sold a portion of its traditional W-2 Wealth Management business to Stifel Financial Corp, with expected cash consideration of approximately $26 million [13] - The advisory services business, GlassRatner, had a record year in 2024, indicating strong performance in its core expertise areas [24] Market Data and Key Metrics Changes - The wealth management business's assets under management decreased from approximately $24 billion to $15 billion following the sale of a majority of W-2 employees [58] - The company continues to focus on its core businesses, including B. Riley Securities, Wealth Management, and advisory services, while also looking for opportunities to monetize non-core assets [17][16] Company Strategy and Development Direction - The company aims to emerge as a more nimble and focused entity, concentrating on its core businesses and reducing debt through asset monetization [17] - The management emphasized the importance of investing in its broker-dealer, wealth management, and advisory businesses to drive growth [36] - The company plans to continue monetizing non-core assets to strengthen its balance sheet and support future growth [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for recovery and growth, highlighting the strategic actions taken to improve the balance sheet and focus on core operations [66] - The management acknowledged the challenges faced due to past principal investments but is committed to moving forward and capitalizing on new opportunities [6][27] Other Important Information - The company completed the full redemption of its February 2025 senior notes, retiring its only significant maturity for that year [14] - A new $160 million senior secured credit facility was established with Oaktree, providing greater financial flexibility [15] Q&A Session Summary Question: What are the plans for liquidity and balance sheet improvement in the next six months? - Management indicated a focus on investing in core businesses and aligning the balance sheet, while remaining opportunistic in asset monetization [36] Question: Can you provide insights on the core business's EBITDA and cash flow potential? - Management suggested looking at historical performance, noting that while the company is smaller, there is still significant operating EBITDA potential [38][42] Question: What is the value and EBITDA generation potential of the telecom and advisory businesses? - Management emphasized the importance of investing in operating businesses and maintaining profitability in wealth management and advisory services [46] Question: Is there an ability to buy back debt under the new credit agreement? - Management clarified that the current senior facility does not allow for buying bonds in the open market [51] Question: What does the wealth management business look like now after the sale? - Management noted that assets under management decreased significantly, providing context for the remaining wealth management group's size [58] Question: Will future asset monetization primarily come from the Principal Investment Group? - Management stated that they will be selective in monetizing non-core assets while focusing on growing core businesses [61]

Core Insights - Moore Law, PLLC is investigating potential claims against B. Riley Financial, Inc. due to undisclosed information regarding a management buyout involving Franchise Group, Inc. [1][3] - The management buyout of Franchise Group, Inc. was valued at $2.8 billion and completed on August 21, 2023 [2]. - B. Riley Financial, Inc. is facing scrutiny for allegedly financing a transaction linked to Brian Kahn, who has been implicated in a conspiracy to defraud investors [3]. Company Overview - B. Riley Financial, Inc. (NASDAQ: RILY) has seen its stock price decline over 70% in the past 12 months [3]. - Franchise Group, Inc. is a holding company that primarily acquires and manages franchises, and it is a client of B. Riley Financial, Inc. [1]. Legal Context - Investors who purchased shares of B. Riley Financial, Inc. prior to May 2023 are encouraged to contact Moore Law for potential claims related to the management buyout and associated disclosures [1][4]. - The investigation suggests that B. Riley's positive statements about its business and prospects may have been materially misleading due to the undisclosed risks [3].

Financial Reporting - B. Riley Financial, Inc. reported preliminary estimated financial information for the fiscal quarter ended December 31, 2024[8]. - The press release regarding financial results was issued on March 3, 2025[8]. - The report includes a cover page interactive data file embedded within the Inline XBRL document[10]. Company Information - The company is listed on the Nasdaq Global Market under the trading symbol RILY[4]. - Phillip J. Ahn serves as the CFO & COO of B. Riley Financial, Inc.[13].

Core Viewpoint - B. Riley Financial has successfully sold Atlantic Coast Recycling, LLC for approximately $70 million, expecting a gain of around $30 million in the first quarter [1][2]. Company Overview - B. Riley Financial is a diversified financial services company that provides tailored solutions to meet the strategic, operational, and capital needs of clients [2]. - The company offers a wide range of services including investment banking, institutional brokerage, private wealth management, financial consulting, corporate restructuring, and more [2]. - B. Riley Financial has made opportunistic investments to benefit its shareholders and has affiliates that originate and underwrite senior secured loans for asset-rich companies [2].

Core Viewpoint - B. Riley Financial, Inc. has successfully completed the redemption of all issued and outstanding 6.375% Senior Notes due February 28, 2025, at 100% of their principal amount plus accrued interest [1][2]. Company Overview - B. Riley Financial is a diversified financial services company that provides tailored solutions to meet the strategic, operational, and capital needs of its clients [3]. - The company offers a wide range of services including investment banking, institutional brokerage, private wealth and investment management, financial consulting, corporate restructuring, operations management, risk and compliance, due diligence, forensic accounting, litigation support, appraisal and valuation, auction, and liquidation services [3]. - B. Riley also engages in opportunistic investments to benefit its shareholders and has affiliates that originate and underwrite senior secured loans for asset-rich companies [3].

Core Insights - B. Riley Financial's shares surged nearly 19% after the announcement of securing new debt financing [1] - The company has faced significant challenges, including a 78% drop in shares in 2024 and an SEC investigation regarding asset risk disclosures [2] - Recent developments indicate a recovery, with the company regaining compliance with Nasdaq and announcing preliminary fourth-quarter results [3][4] Financial Developments - B. Riley secured $160 million in new debt financing from Oaktree Capital Management, primarily used to pay down $118 million of outstanding debt [4] - The financing also included up to $35 million for a loan related to a joint venture for liquidating a fabric and crafts retailer [4] Market Reaction - Investors have responded positively, with shares rallying close to 50% this year, reflecting optimism about the company's future [5] - The volatility and unknowns in the current situation make it challenging for retail investors to assess the investment landscape [5]

Core Viewpoint - B. Riley Financial has secured a new $160 million senior secured debt facility from Oaktree Capital Management, which will be used to retire existing debt and support a joint venture overseeing the liquidation of JOANN, a fabric and crafts retailer facing bankruptcy [1][2][4]. Group 1: Financial Transactions - B. Riley utilized approximately $118 million to retire outstanding debt under the Nomura Senior Secured Credit Agreement, with the remaining funds allocated for working capital and a joint venture investment [2]. - The new Term Loan Facility has an interest rate of SOFR plus 8.00% and includes warrants for Oaktree to purchase 1,832,290 common shares at an exercise price of $5.14 per share, representing a 20% premium to the 30-day VWAP prior to issuance [4]. Group 2: JOANN Liquidation - B. Riley's GA Group, in which it holds a 44% stake, was selected as the exclusive agent to manage the liquidation of JOANN, which has approximately $2 billion in retail inventory [3]. - The liquidation process is expected to be completed in about 12 weeks and is one of the largest transactions in GA Group's history [3]. Group 3: Strategic Implications - The partnership with Oaktree and the establishment of GA Group is seen as a significant step for B. Riley, enhancing its financial and strategic flexibility [4]. - The successful bid in JOANN's bankruptcy process highlights the potential of GA Group in large-scale retail liquidations, benefiting B. Riley as both an investor and through its equity stake [4].

LOS ANGELES, Feb. 26, 2025 /PRNewswire/ -- B. Riley Financial, Inc. (NASDAQ: RILY) ("B. Riley" or the "Company"), a diversified financial services company, today announced that the Company has regained compliance with Nasdaq Listing Rule 5250(c)(1) in connection with the filing of its Third Quarter 10-Q. The Company received notice from The Nasdaq Stock Market on February 24, 2025 indicating that it has regained compliance with the Listing Rule, which requires listed companies to timely file all required pe ...

Core Points - B. Riley Financial, Inc. plans to release preliminary financial results for the fourth quarter ended December 31, 2024, after market close on March 3, 2025 [1] - The company will host a conference call for analysts and investors on the same day at 4:30 p.m. ET, which will include a question-and-answer session [2] - B. Riley has filed its Quarterly Report on Form 10-Q for the three-month period ended September 30, 2024, and expects to regain compliance with Nasdaq Listing Rule 5250(c)(1) [3] - Bryant Riley, Chairman and Co-CEO, indicated that the upcoming conference call will provide a comprehensive update on the business and capital allocation priorities for renewed growth and value creation [4] Company Overview - B. Riley Financial is a diversified financial services company that offers tailored solutions to meet the strategic, operational, and capital needs of clients [4] - The company provides a wide range of financial services, including investment banking, institutional brokerage, private wealth management, financial consulting, corporate restructuring, and more [4] - B. Riley also engages in opportunistic investments to benefit shareholders and has affiliates that originate and underwrite senior secured loans for asset-rich companies [4]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 Or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-37503 B. RILEY FINANCIAL, INC. (Exact Name of Registrant as Specified in Its Charter) | Delaware | 27-0223 ...