B. Riley Financial(US:RILY)2023-08-10 00:08Financial Data and Key Metrics Changes - Total revenues increased to $406 million in Q2 2023, up from $140 million in Q2 2022, representing a significant year-over-year growth [7] - Net income available to common shareholders was $44 million or $1.55 per diluted share [7] - Operating revenues rose by 41% to $364 million, compared to $257 million in the prior year quarter [7] - Operating adjusted EBITDA increased to $80 million from $74 million in the prior year quarter [7] - Total cash and investments at quarter end was approximately $1.92 billion, with total debt around $2.33 billion [19] Business Line Data and Key Metrics Changes - Financial consulting revenues increased by 28% year-over-year to $31 million, up from $24 million in the prior year quarter [43] - Auction and liquidation revenues saw a significant increase of $10.6 million during the quarter, driven by large retail engagements [42] - Consumer segment revenues were $60 million for the quarter, largely driven by Targus, which was acquired in Q4 of the previous year [25] - Segment income increased to $8 million, up from $4 million in the prior year period, with strong demand for bankruptcy restructuring and litigation advisory services [23] Market Data and Key Metrics Changes - Substantial activity was noted in Europe, with projects completed in Germany and Ireland for GameStop, and new engagements started with Salamander [8] - The company is experiencing a favorable environment for recruiting, with multiple experienced hires added to the banking and equity research team [20] Company Strategy and Development Direction - The company aims to capitalize on current momentum and is focused on growth after right-sizing the business [21] - Plans to utilize the balance sheet to pursue opportunities across the platform, including supporting clients in strategic initiatives and making opportunistic investments [36] - The company is encouraged by the current performance and outlook, recognizing the unique nature of its diversified platform [26] Management's Comments on Operating Environment and Future Outlook - Management noted that the current quarter showed signs of turning a corner, with increased client activity across various segments [10] - The company reaffirmed guidance for operating EBITDA of at least $105 million in Q3, indicating confidence in continued activity levels [35] - Management expressed optimism about the macro environment and the potential for improved performance in episodic businesses [71] Other Important Information - The company declared a regular dividend of $1 per share, to be paid on or about August 21 [39] - Recent acquisitions, including ABTV and Crawford & Winiarski, are expected to enhance the company's restructuring capabilities [44] Q&A Session Summary Question: Update on the franchise group acquisition - Management provided a brief update but did not elaborate extensively [48] Question: Progress on wealth management rationalization - Management indicated that the wealth management business is positioned well despite a tough capital markets environment, aiming for breakeven [50] Question: Prospects for Bitcoin and Core Scientific - Management noted improved prospects for Core Scientific, with expectations that debt will be paid down as Bitcoin prices recover [69]