It is important to put this in perspective. This income goes a long way in servicing our interest in servicing our clients while utilizing approximately a third of our balance sheet. In addition, we have used our cash and investments of over $2 billion to create an investment portfolio that consists of public and private debt and equity securities and businesses where we have deep conviction in capital appreciation, medium-to-long term investment horizons and have often taken board level involvement.Īpproximately 800 million of this portfolio is dedicated to interest bearing investments and generates approximately 85 million of annual income. Since that time, we have added to our collection of operating companies by purchasing four telecom and communication assets, two wealth management businesses, a forensic accounting litigation support restructuring business, a portfolio of retail brand licenses, a loan receivables, portfolio, and several smaller complementary assets.Īll of these purchases were opportunistic and share the common characteristic of being cash flow generative and mostly uncorrelated assets. And most recently, FocalPoint last month, and Great American Group which is primarily a retail liquidation business. Riley Securities or Investment Banking Business, which we expanded through acquisitions including FBR in 2017. Riley Financial effectively consisted of two cyclical subsidiaries, B. When we took the business public in 2014, B. While it is impossible to predict how long these markets will be closed, I want to briefly discuss why we believe this slowdown will highlight our diversified business bottle and commitment to managing operating expenses. However, I want to take a moment discuss what we believe is a significant competitive advantage and an important differentiator for our shareholders and team members in view of softer capital markets.Īs you're likely aware, IPOs, Secondaries and SPAC offerings have effectively come to a halt over the last two months. Riley Securities has gained meaningful market share, extending our product offerings and our brokerage businesses earnings. Riley Securities raised nearly $7 billion across IPO underwritings, follow-on underwriting, SPAC new issuances and debt raises in 2021. In 2021, our investment banking division delivered extremely strong results thanks to robust pipeline of activity as we leverage our growing reputation as a preferred banking partner to small and midcap companies. This translates to a 70% increase in year-over-year operating revenues and a 35% increase in operating adjusted EBITDA. Riley where we generated total revenues and total adjusted EBITDA in 2021 of $1.7 billion and $762 million respectively representing a 93% revenue increase year-over-year and an 87% increase in our adjusted EBTIDA.ĭuring the same period, operating revenues totaled $1.35 billion resulting in operating adjusted EBTIDA of $422 million. The fourth quarter caps off another record year for B. 2021 was an important year for us strategically, operationally and financially. We are pleased to report an extraordinarily successful quarter for B. And before we conclude today's call, I will provide the necessary cautions regarding forward-looking statements. Riley are Bryant Riley, Chairman, Co-Founder and Co-CEO Tom Kelleher, Co-Founder and Co-CEO and Phillip Ahn, CFO and COO.Īfter management's remarks, we will open the line for questions. An audio replay will also be available on the Company's Investor Relation website later today. Copies are available in the Investor section of the Company's website at ir.Īs a reminder, today's call is being recorded. Riley issued a press release and presentation detailing its financial results for the fourth quarter and fiscal year 2021. Riley Financials Fourth Quarter and Full Year 2021 Earnings Call. ( NASDAQ: RILY) Q4 2021 Earnings Conference Call Febru4:30 PM ETīryant Riley - Chairman and Co-Founder and Co-CEO
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