In This Article:
Release Date: March 03, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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B. Riley Financial Inc (NASDAQ:RILY) established a joint venture with Oak Tree Capital Management, providing substantial capital and retaining significant equity upside.
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The company successfully managed the liquidation of Jo-Ann fabric and craft stores, representing one of the largest transactions in GA Group's history.
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B. Riley Financial Inc (NASDAQ:RILY) received approximately $236 million in gross proceeds through the financing of brand assets.
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The company completed the full redemption of its February 2025 senior notes, retiring its only significant 2025 maturity.
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B. Riley Financial Inc (NASDAQ:RILY) announced the sale of Atlantic Coast Recycling for approximately $70 million, expecting to report a gain of about $30 million.
Negative Points
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B. Riley Financial Inc (NASDAQ:RILY) reported a net loss from continuing operations of $178 million to $187 million, impacted by impairment charges and trading losses.
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The company recognized significant losses in its principal investment portfolio.
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There is uncertainty regarding the filing of the 10K, with a potential need for a 15-day extension.
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B. Riley Financial Inc (NASDAQ:RILY) has a substantial amount of debt, with total debt of $1.78 billion as of December 2024.
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The company does not have the ability to buy back debt under the new credit agreement with Oaktree.
Q & A Highlights
Q: Can you give us a sense of what you intend to accomplish in the next 6 months to beef up liquidity and the balance sheet? A: Our strategies are fluid, but our focus is on investing in our business, particularly in our broker-dealer, wealth management, and advisory business. We will proactively work to align our balance sheet, having made significant progress in the last 12 months. We will continue to be opportunistic in monetizing non-core assets, as demonstrated by the recent sale of Atlantic Recycling for $70 million.
Q: Can you talk about your core business and its potential for generating EBITDA or free cash flow in the next quarter or full year 2025? A: The best way to assess our core business is to look at historical performance from 2021 to 2023. While we have sold some assets, like our brands business, our core operations remain strong. Our broker-dealer, wealth management, and advisory services have shown resilience, and we are focused on generating opportunities and revenue to get back on track.