EX-99.1 2 ea175267ex99-1_brileyfin.htm PRESS RELEASE DATED MARCH 15, 2023

Exhibit 99.1

B. Riley Financial Files 2022 Annual Report on Form 10-K

LOS ANGELES, March 16, 2023 – B. Riley Financial, Inc. (NASDAQ: RILY) (“B. Riley” or the “Company”), a diversified financial services platform, today announced the filing of its Annual Report on Form 10-K for the fiscal year ended December 31, 2022.

Certain previously issued financial statements have been restated to correct the classification of dividends received and realized and unrealized gains (losses) on certain investments held by non-regulated entities from within “Revenue” to “Other Income” in the Company’s consolidated statement of operations.

This reclassification had no impact on previously issued consolidated balance sheets, net income, earnings per share (EPS), adjusted EBITDA, or operating adjusted EBITDA.

Additional information related to operating and investment metrics can be found in the revised Fourth Quarter 2022 Financial Supplement which is available on the Company’s investor relations website. Information about the Company’s use of non-GAAP financial measures is provided under “Use of Non-GAAP Financial Measures.”

These results have been recast in the corresponding tables for the periods presented.

	Year Ended									Year Ended									Year Ended
	December 31, 2022									December 31, 2021									December 31, 2020
(Dollars in thousands)	As Previously Reported			Adjustments			As Revised			As Previously Reported			Adjustments			As Restated			As Previously Reported			Adjustments			As Restated

Total Revenues	$	915,465		$	165,205		$	1,080,670		$	1,740,561		$	(185,863	)	$	1,554,698		$	902,721		$	(68,504	)	$	834,217
Total Operating Expenses		(1,011,222	)		—			(1,011,222	)		(1,040,170	)		—			(1,040,170	)		(557,956	)		—			(557,956	)
Other (Expenses) Income		(124,693	)		(165,205	)		(289,898	)		(85,629	)		185,863			100,234			(65,308	)		68,504			3,196
(Loss) Income Before Income Taxes		(220,450	)		—			(220,450	)		614,762			—			614,762			279,457			—			279,457
Net (Loss) Income Available to Common Shareholders	$	(167,837	)	$	—		$	(167,837	)	$	437,597		$	—		$	437,597		$	200,438		$	—		$	200,438
Diluted (Loss) Income per Common Share	$	(5.95	)	$	—		$	(5.95	)	$	15.09		$	—		$	15.09		$	7.56		$	—		$	7.56


www.brileyfin.com \| NASDAQ: RILY	1

	Year Ended									Year Ended							Year Ended
	December 31, 2022									December 31, 2021							December 31, 2020
(Dollars in thousands)	As Previously Reported			Adjustments			As Revised			As Previously Reported		Adjustments			As Restated		As Previously Reported		Adjustments			As Restated

Operating Revenues ⁽²⁾	$	1,319,172		$	(35,874	)	$	1,283,298		$	1,353,885	$	(19,732	)	$	1,334,153	$	798,703	$	(21,163	)	$	777,540
Investment (Loss) Gains ⁽⁴⁾		(403,707	)		201,079			(202,628	)		386,676		(166,131	)		220,545		104,018		(47,341	)		56,677
Total Revenues	$	915,465		$	165,205		$	1,080,670		$	1,740,561	$	(185,863	)	$	1,554,698	$	902,721	$	(68,504	)	$	834,217

Operating Adjusted EBITDA ⁽³⁾	$	366,458		$	—		$	366,458		$	422,029	$	—		$	422,029	$	311,673	$	—		$	311,673
Investment Adjusted EBITDA ⁽⁵⁾		(334,176	)		—			(334,176	)		340,465		—			340,465		95,145		—			95,145
Total Adjusted EBITDA ⁽¹⁾	$	32,282		$	—		$	32,282		$	762,494	$	—		$	762,494	$	406,818	$	—		$	406,818

	Three Months Ended									Three Months Ended
	December 31, 2022									December 31, 2021
(Dollars in thousands)	As Previously Reported			Adjustments			As Revised			As Previously Reported			Adjustments			Restated

Total Revenues	$	326,813		$	55,279		$	382,092		$	422,110		$	(21,796	)	$	400,314
Total Operating Expenses		(372,094	)		—			(372,094	)		(301,588	)		—			(301,588	)
Other (Expenses) Income		(42,172	)		(55,279	)		(97,451	)		(29,229	)		21,796			(7,433	)
(Loss) Income Before Income Taxes		(87,453	)		—			(87,453	)		91,293			—			91,293
Net (Loss) Income Available to Common Shareholders	$	(59,447	)	$	—		$	(59,447	)	$	62,182		$	—		$	62,182
Diluted (Loss) Income per Common Share	$	(2.08	)	$	—		$	(2.08	)	$	2.08		$	—		$	2.08

	Three Months Ended									Three Months Ended
	December 31, 2022									December 31, 2021
(Dollars in thousands)	As Previously Reported			Adjustments			As Revised			As Previously Reported		Adjustments			Restated

Operating Revenues ⁽²⁾	$	450,357		$	(9,595	)	$	440,762		$	353,252	$	(7,786	)	$	345,466
Investment (Loss) Gains ⁽⁴⁾		(123,544	)		64,874			(58,670	)		68,858		(14,010	)		54,848
Total Revenues	$	326,813		$	55,279		$	382,092		$	422,110	$	(21,796	)	$	400,314

Operating Adjusted EBITDA ⁽³⁾	$	101,807		$	—		$	101,807		$	106,097	$	—		$	106,097
Investment Adjusted EBITDA ⁽⁵⁾		(115,847	)		—			(115,847	)		31,928		—			31,928
Total Adjusted EBITDA ⁽¹⁾	$	(14,040	)	$	—		$	(14,040	)	$	138,025	$	—		$	138,025

This reclassification had no impact on previously issued consolidated balance sheets, net income, earnings per share (EPS), adjusted EBITDA, or operating adjusted EBITDA.

The Company’s Annual Report on Form 10-K is available in the Investor Relations section of the Company’s website at ir.brileyfin.com under “SEC Filings,” as well as on the SEC’s website at www.sec.gov.


www.brileyfin.com \| NASDAQ: RILY	2

About B. Riley Financial

B. Riley Financial is a diversified financial services platform that delivers tailored solutions to meet the strategic, operational, and capital needs of its clients and partners. B. Riley leverages cross-platform expertise to provide clients with full service, collaborative solutions at every stage of the business life cycle. Through its affiliated subsidiaries, B. Riley provides end-to-end financial services across 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. B. Riley opportunistically invests to benefit its shareholders, and certain affiliates originate and underwrite senior secured loans for asset-rich companies. B. Riley refers to B. Riley Financial, Inc. and/or one or more of its subsidiaries or affiliates. For more information, please visit www.brileyfin.com.

Footnotes

(See “Note Regarding Use of Non-GAAP Financial Measures” for further discussion of these non-GAAP terms. For a reconciliation of Adjusted EBITDA, Operating Revenue, Operating Adjusted EBITDA, and Investment Adjusted EBITDA to the comparable GAAP financial measures, please see the Appendix hereto.)

(1)

Adjusted EBITDA includes earnings before interest, taxes, depreciation, amortization, restructuring charge, share-based payments, gain on extinguishment of loans, impairment of tradenames, and transaction related and other costs.

(2)

Operating Revenue is defined as the sum of revenues from (i) Service and Fees, (ii) Interest Income - Loans and Securities Lending and (iii) Sales of Goods.

(3)

Operating Adjusted EBITDA is defined as Adjusted EBITDA excluding (i) Trading Income (Loss) and Fair Value Adjustments on Loans, (ii) Realized and Unrealized Gains (Losses) on Investments, and (iii) other investment related expenses.

(4)

Investment Gains (Loss) is defined as Trading Income (Loss) and Fair Value Adjustments on Loans.

(5)

Investment Adjusted EBITDA is defined as the sum of (i) Trading Income (Loss) and Fair Value Adjustments on Loans and (ii) Realized and Unrealized Gains (Losses) on Investments, less other investment related expenses.

Note Regarding Use of Non-GAAP Financial Measures

Certain of the information set forth herein, including operating revenues, adjusted EBITDA, operating adjusted EBITDA, and investment adjusted EBITDA may be considered non-GAAP financial measures. B. Riley Financial believes this information is useful to investors because it provides a basis for measuring the Company’s available capital resources, the operating performance of its business and its revenues and cash flow, (i) excluding in the case of operating revenues, trading income (loss) and fair value adjustments on loans, (ii) excluding in the case of adjusted EBITDA, net interest expense, provisions for or benefit from income taxes, depreciation, amortization, fair value adjustment, restructuring charge, gain on extinguishment of loans, impairment of trade names, stock-based compensation and transaction and other expenses, (iii) excluding in the case of operating adjusted EBITDA, aforementioned adjustments for adjusted EBITDA, as well as trading income (loss) and fair value adjustments on loans, realized and unrealized gains (losses) on investments, and other investment related expenses, and (iv) in the case of investment adjusted EBITDA this includes trading income (loss) and fair value adjustments on loans and realized and unrealized gains (losses) on investments, net of other investment related expenses, that would normally be included in the most directly comparable measures calculated and presented in accordance with Generally Accepted Accounting Principles (“GAAP”). In addition, the Company’s management uses these non-GAAP financial measures along with the most directly comparable GAAP financial measures in evaluating the Company’s operating performance, capital resources and cash flow. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP, and non-financial measures as reported by the Company may not be comparable to similarly titled amounts reported by other companies.


www.brileyfin.com \| NASDAQ: RILY	3

B. RILEY FINANCIAL, INC.

Consolidated Balance Sheets

(Dollars in thousands, except par value)

	December 31,
	2022			2021

Assets
Assets
Cash and cash equivalents	$	268,618		$	278,933
Restricted cash		2,308			927
Due from clearing brokers		48,737			29,657
Securities and other investments owned, at fair value		1,129,268			1,532,095
Securities borrowed		2,343,327			2,090,966
Accounts receivable, net		149,110			49,673
Due from related parties		1,081			2,074
Loans receivable, at fair value (includes $98,729 and $167,744 from related parties as of December 31, 2022 and December 31, 2021, respectively)		701,652			873,186
Prepaid expenses and other assets		460,696			463,502
Operating lease right-of-use assets		88,593			56,969
Property and equipment, net		27,141			12,870
Goodwill		512,595			250,568
Other intangible assets, net		374,098			207,651
Deferred income taxes		3,978			2,848
Total assets	$	6,111,202		$	5,851,919
Liabilities and Equity
Liabilities
Accounts payable	$	81,384		$	6,326
Accrued expenses and other liabilities		322,974			343,750
Deferred revenue		85,441			69,507
Deferred income taxes		29,548			93,055
Due to related parties and partners		2,210			—
Due to clearing brokers		19,307			69,398
Securities sold not yet purchased		5,897			28,623
Securities loaned		2,334,031			2,088,685
Operating lease liabilities		99,124			69,072
Notes payable		25,263			357
Loan participations sold		—			—
Revolving credit facility		127,678			80,000
Term loans, net		572,079			346,385
Senior notes payable, net		1,721,751			1,606,560
Total liabilities		5,426,687			4,801,718

Commitments and contingencies
Redeemable noncontrolling interests in equity of subsidiaries		178,622			345,000
B. Riley Financial, Inc. equity:
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 4,545 and 4,512 issued and outstanding as of December 31, 2022 and December 31, 2021, respectively; liquidation preference of $113,615 and $112,790 as of December 31, 2022 and December 31, 2021, respectively.		—			—
Common stock, $0.0001 par value; 100,000,000 shares authorized; 28,523,764 and 27,591,028 issued and outstanding as of December 31, 2022 and December 31, 2021, respectively.		3			3
Additional paid-in capital		494,201			413,486
(Accumulated deficit) retained earnings		(45,220	)		248,862
Accumulated other comprehensive loss		(2,470	)		(1,080	)
Total B. Riley Financial, Inc. stockholders’ equity		446,514			661,271
Noncontrolling interests		59,379			43,930
Total equity		505,893			705,201
Total liabilities and equity	$	6,111,202		$	5,851,919


www.brileyfin.com \| NASDAQ: RILY	4

B. RILEY FINANCIAL, INC.

Consolidated Statements of Operations

(Dollars in thousands, except share data)

	Year Ended December 31,
	2022			2021			2020
	As Revised			As Restated			As Restated

Revenues:
Services and fees	$	895,623		$	1,153,225		$	645,906
Trading (loss) income and fair value adjustments on loans		(202,628	)		220,545			56,677
Interest income - Loans and securities lending		245,400			122,723			102,499
Sale of goods		142,275			58,205			29,135
Total revenues		1,080,670			1,554,698			834,217
Operating expenses:
Direct cost of services		142,455			54,390			60,451
Cost of goods sold		78,647			26,953			12,460
Selling, general and administrative expenses		714,614			906,196			428,537
Restructuring charge		9,011			—			1,557
Impairment of tradenames		—			—			12,500
Interest expense - Securities lending and loan participations sold		66,495			52,631			42,451
Total operating expenses		1,011,222			1,040,170			557,956
Operating income		69,448			514,528			276,261
Other income (expense):
Interest income		2,735			229			564
Dividend income		35,874			19,732			21,163
Realized and unrealized (losses) gains on investments		(201,079	)		166,131			47,341
Change in fair value of financial instruments and other		10,188			3,796			—
Income from equity method investments		3,570			2,801			(623	)
Interest expense		(141,186	)		(92,455	)		(65,249	)
(Loss) income before income taxes		(220,450	)		614,762			279,457
Benefit from (provision for) income taxes		63,856			(163,960	)		(75,440	)
Net (loss) income		(156,594	)		450,802			204,017
Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests		3,235			5,748			(1,131	)
Net (loss) income attributable to B. Riley Financial, Inc.		(159,829	)		445,054			205,148
Preferred stock dividends		8,008			7,457			4,710
Net (loss) income available to common shareholders	$	(167,837	)	$	437,597		$	200,438

Basic (loss) income per common share	$	(5.95	)	$	15.99		$	7.83
Diluted (loss) income per common share	$	(5.95	)	$	15.09		$	7.56

Weighted average basic common shares outstanding		28,188,530			27,366,292			25,607,278
Weighted average diluted common shares outstanding		28,188,530			29,005,602			26,508,397


www.brileyfin.com \| NASDAQ: RILY	5

B. RILEY FINANCIAL, INC.

Consolidated Statements of Operations

(Unaudited)

(Dollars in thousands, except share data)

	Year Ended December 31,
	2022									2021									2020
	As Previously Reported			Adjustments			As Revised			As Previously Reported			Adjustments			As Restated			As Previously Reported			Adjustments			As Restated
Revenues:
Services and fees	$	931,497		$	(35,874	)	$	895,623		$	1,172,957		$	(19,732	)	$	1,153,225		$	667,069		$	(21,163	)	$	645,906
Trading (loss) income and fair value adjustments on loans		(403,707	)		201,079			(202,628	)		386,676			(166,131	)		220,545			104,018			(47,341	)		56,677
Interest income - Loans and securities lending		245,400			—			245,400			122,723			—			122,723			102,499			—			102,499
Sale of goods		142,275			—			142,275			58,205			—			58,205			29,135			—			29,135
Total revenues		915,465			165,205			1,080,670			1,740,561			(185,863	)		1,554,698			902,721			(68,504	)		834,217
Operating expenses:
Direct cost of services		142,455			—			142,455			54,390			—			54,390			60,451			—			60,451
Cost of goods sold		78,647			—			78,647			26,953			—			26,953			12,460			—			12,460
Selling, general and administrative expenses		714,614			—			714,614			906,196			—			906,196			428,537			—			428,537
Restructuring charge		9,011			—			9,011			—			—			—			1,557			—			1,557
Impairment of tradenames		—			—			—			—			—			—			12,500			—			12,500
Interest expense - Securities lending and loan participations sold		66,495			—			66,495			52,631			—			52,631			42,451			—			42,451
Total operating expenses		1,011,222			—			1,011,222			1,040,170			—			1,040,170			557,956			—			557,956
Operating (loss) income		(95,757	)		165,205			69,448			700,391			(185,863	)		514,528			344,765			(68,504	)		276,261
Other income (expense):
Interest income		2,735			—			2,735			229			—			229			564			—			564
Dividend income		—			35,874			35,874			—			19,732			19,732			—			21,163			21,163
Realized and unrealized (losses) gains on investments		—			(201,079	)		(201,079	)		—			166,131			166,131			—			47,341			47,341
Change in fair value of financial instruments and other		10,188			—			10,188			3,796			—			3,796			—			—			—
Income from equity method investments		3,570			—			3,570			2,801			—			2,801			(623	)		—			(623	)
Interest expense		(141,186	)		—			(141,186	)		(92,455	)		—			(92,455	)		(65,249	)		—			(65,249	)
(Loss) income before income taxes		(220,450	)		—			(220,450	)		614,762			—			614,762			279,457			—			279,457
Benefit from (provision for) income taxes		63,856			—			63,856			(163,960	)		—			(163,960	)		(75,440	)		—			(75,440	)
Net (loss) income		(156,594	)		—			(156,594	)		450,802			—			450,802			204,017			—			204,017
Net income attributable to noncontrolling interests and redeemable noncontrolling interests		3,235			—			3,235			5,748			—			5,748			(1,131	)		—			(1,131	)
Net (loss) income attributable to B. Riley Financial, Inc.		(159,829	)		—			(159,829	)		445,054			—			445,054			205,148			—			205,148
Preferred stock dividends		8,008			—			8,008			7,457			—			7,457			4,710			—			4,710
Net (loss) income available to common shareholders	$	(167,837	)	$	—		$	(167,837	)	$	437,597		$	—		$	437,597		$	200,438			—		$	200,438

Basic (loss) income per common share	$	(5.95	)				$	(5.95	)	$	15.99					$	15.99		$	7.83					$	7.83
Diluted (loss) income per common share	$	(5.95	)				$	(5.95	)	$	15.09					$	15.09		$	7.56					$	7.56

Weighted average basic common shares outstanding		28,188,530						28,188,530			27,366,292						27,366,292			25,607,278						25,607,278
Weighted average diluted common shares outstanding		28,188,530						28,188,530			29,005,602						29,005,602			26,508,397						26,508,397


www.brileyfin.com \| NASDAQ: RILY	6

B. RILEY FINANCIAL, INC.

Consolidated Statements of Operations

(Unaudited)

(Dollars in thousands, except share data)

	Three Months Ended
	December 31,
	2022			2021
	As Revised			As Restated
Revenues:
Services and fees	$	243,837		$	308,062
Trading (loss) income and fair value adjustments on loans		(58,670	)		54,848
Interest income - Loans and securities lending		62,545			33,443
Sale of goods		134,380			3,961
Total revenues		382,092			400,314
Operating expenses:
Direct cost of services		68,496			12,955
Cost of goods sold		71,313			5,559
Selling, general and administrative expenses		208,552			270,712
Restructuring charge		995			—
Interest expense - Securities lending and loan participations sold		22,738			12,362
Total operating expenses		372,094			301,588
Operating income		9,998			98,726
Other income (expense):
Interest income		1,482			54
Dividend income		9,595			7,786
Realized and unrealized (losses) gains on investments		(64,874	)		14,010
Change in fair value of financial instruments and other		460			(4,471	)
Income from equity method investments		285			1,629
Interest expense		(44,399	)		(26,441	)
(Loss) income before income taxes		(87,453	)		91,293
Benefit from (provision for) income taxes		23,998			(23,847	)
Net (loss) income		(63,455	)		67,446
Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests		(6,010	)		3,274
Net (loss) income attributable to B. Riley Financial, Inc.		(57,445	)		64,172
Preferred stock dividends		2,002			1,990
Net (loss) income available to common shareholders	$	(59,447	)	$	62,182

Basic (loss) income per common share	$	(2.08	)	$	2.26
Diluted (loss) income per common share	$	(2.08	)	$	2.08

Weighted average basic common shares outstanding		28,545,714			27,569,188
Weighted average diluted common shares outstanding		28,545,714			29,840,704


www.brileyfin.com \| NASDAQ: RILY	7

B. RILEY FINANCIAL, INC.

Consolidated Statements of Operations

(Unaudited)

(Dollars in thousands, except share data)

	Three Months Ended December 31,
	2022									2021
	As Previously Reported			Adjustments			As Revised			As Previously Reported			Adjustments			As Restated
Revenues:
Services and fees	$	253,432		$	(9,595	)	$	243,837		$	315,848		$	(7,786	)	$	308,062
Trading (loss) income and fair value adjustments on loans		(123,544	)		64,874			(58,670	)		68,858			(14,010	)		54,848
Interest income - Loans and securities lending		62,545			—			62,545			33,443			—			33,443
Sale of goods		134,380			—			134,380			3,961			—			3,961
Total revenues		326,813			55,279			382,092			422,110			(21,796	)		400,314
Operating expenses:
Direct cost of services		68,496			—			68,496			12,955			—			12,955
Cost of goods sold		71,313			—			71,313			5,559			—			5,559
Selling, general and administrative expenses		208,552			—			208,552			270,712			—			270,712
Restructuring charge		995			—			995			—			—			—
Interest expense - Securities lending and loan participations sold		22,738			—			22,738			12,362			—			12,362
Total operating expenses		372,094			—			372,094			301,588			—			301,588
Operating (loss) income		(45,281	)		55,279			9,998			120,522			(21,796	)		98,726
Other income (expense):
Interest income		1,482			—			1,482			54			—			54
Dividend income		—			9,595			9,595			—			7,786			7,786
Realized and unrealized (losses) gains on investments		—			(64,874	)		(64,874	)		—			14,010			14,010
Change in fair value of financial instruments and other		460			—			460			(4,471	)		—			(4,471	)
Income from equity method investments		285			—			285			1,629			—			1,629
Interest expense		(44,399	)		—			(44,399	)		(26,441	)		—			(26,441	)
(Loss) income before income taxes		(87,453	)		—			(87,453	)		91,293			—			91,293
Benefit from (provision for) income taxes		23,998			—			23,998			(23,847	)		—			(23,847	)
Net (loss) income		(63,455	)		—			(63,455	)		67,446			—			67,446
Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests		(6,010	)		—			(6,010	)		3,274			—			3,274
Net (loss) income attributable to B. Riley Financial, Inc.		(57,445	)		—			(57,445	)		64,172			—			64,172
Preferred stock dividends		2,002			—			2,002			1,990			—			1,990
Net (loss) income available to common shareholders	$	(59,447	)	$	—		$	(59,447	)	$	62,182		$	—		$	62,182

Basic (loss) income per common share	$	(2.08	)				$	(2.08	)	$	2.26					$	2.26
Diluted (loss) income per common share	$	(2.08	)				$	(2.08	)	$	2.08					$	2.08

Weighted average basic common shares outstanding		28,545,714						28,545,714			27,569,188						27,569,188
Weighted average diluted common shares outstanding		28,545,714						28,545,714			29,840,704						29,840,704


www.brileyfin.com \| NASDAQ: RILY	8

B. RILEY FINANCIAL, INC.

Adjusted EBITDA and Operating Adjusted EBITDA Reconciliation

(Unaudited)

(Dollars in thousands)

	Year Ended December 31,
	2022			2021			2020
Net (loss) income attributable to B. Riley Financial, Inc.	$	(159,829	)	$	445,054		$	205,148
Adjustments:
(Benefit from) provision for income taxes		(63,856	)		163,960			75,440
Interest expense		141,186			92,455			65,249
Interest income		(2,735	)		(229	)		(564	)
Share based payments		61,140			36,011			18,588
Depreciation and amortization		39,969			25,871			19,369
Restructuring charge		9,011			—			1,557
Gain on extinguishment of loans		(1,102	)		(6,509	)		—
Impairment of tradenames		—			—			12,500
Transactions related costs and other		8,498			5,881			9,531
Total EBITDA Adjustments		192,111			317,440			201,670
Adjusted EBITDA	$	32,282		$	762,494		$	406,818

Operating EBITDA Adjustments:
Trading loss (income) and fair value adjustments on loans		202,628			(220,545	)		(56,677	)
Realized and unrealized losses (gains) on investments		201,079			(166,131	)		(47,341	)
Other investment related expenses		(69,531	)		46,211			8,873
Total Operating EBITDA Adjustments		334,176			(340,465	)		(95,145	)
Operating Adjusted EBITDA	$	366,458		$	422,029		$	311,673


www.brileyfin.com \| NASDAQ: RILY	9

B. RILEY FINANCIAL, INC.

Adjusted EBITDA and Operating Adjusted EBITDA Reconciliation

(Unaudited)

(Dollars in thousands)

	Three Months Ended December 31,
	2022			2021
Net (loss) income attributable to B. Riley Financial, Inc.	$	(57,445	)	$	64,172
Adjustments:
(Benefit from) provision for income taxes		(23,998	)		23,847
Interest expense		44,399			26,441
Interest income		(1,482	)		(54	)
Share based payments		15,312			12,503
Depreciation and amortization		13,443			6,805
Restructuring charge		995			—
Gain on extinguishment of loans		—			—
Transactions related costs and other		(5,264	)		4,311
Total EBITDA Adjustments		43,405			73,853
Adjusted EBITDA	$	(14,040	)	$	138,025

Operating EBITDA Adjustments:
Trading loss (income) and fair value adjustments on loans		58,670			(54,848	)
Realized and unrealized losses (gains) on investments		64,874			(14,010	)
Other investment related expenses		(7,697	)		36,930
Total Operating EBITDA Adjustments		115,847			(31,928	)
Operating Adjusted EBITDA	$	101,807		$	106,097

# # #

Contacts

Investors	Media
Mike Frank	Jo Anne McCusker
ir@brileyfin.com	press@brileyfin.com
(212) 409-2424	(646) 885-5425
	Source: B. Riley Financial, Inc.


www.brileyfin.com \| NASDAQ: RILY	10