RILY - Earnings call transcript Q4 2020 | B. Riley Financial, Inc.

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Operator

Good afternoon, and welcome to B. Riley Financial's Fourth Quarter and Full Year 2020 Earnings Call. B. Riley Financial has issued a press release and presentation detailing its financial results for the fourth quarter and fiscal year 2020. Copies are available in the Investor section of the company's website, at ir.brileyfin.com. include of will financial call conference a non-GAAP discussion measures. Today's the these the financial non-GAAP reconciling company's earnings measures in Information found to GAAP be results release. can

will being a later website An As call available is today's audio the reminder, today. replay also company's be on recorded.

from are open After COO. us Tom we Chairman, will Co-CEO; line Bryant management's Co-Founder for and today Joining Co-Founder Ahn, and CFO Riley, and the questions. Kelleher, Co-CEO; B. Riley and Phillip remarks,

the conclude necessary call regarding to Riley, today's I call, now we Mr. Mr. provide will will Before statements. cautions I Riley. forward-looking turn over please the proceed. Bryant

Bryant Riley

reported Thanks, XXXX, of for in year. million $XXX Riley both B. for of over year performance excess Financial profitability in quarter and the fourth million revenues we on and full earnings and our developed. the are and confident the revenues welcome, despite we've $XXX the otherwise revenues In increasingly of the of reported an everyone. XXXX. power Based record total full quarter, platform challenging we year, in fourth

million quarterly across revenues results brokerage QX, businesses increased consolidated an to profitability our demonstrate record and in EBITDA Investment operating of from results $XXX.X record banking and, business. particularly, $XXX delivered Our of quarterly impressive contributing our operating million.

been strong saw a significant across We desk. our deals IPOs, increased have deal Markets number more and Advisory best flow, from beneficiaries businesses. quarterly only we of not ATM SPACs a equity Importantly, larger but also for of from momentum and and Capital

withstand for $XXX in a which of of a equity platform operating Principal volatile activity, believe for in our only of to a were book resulted liquidation our have we from to over the our also the benefit million, contribution investment Appraisal, built approximately total and markets, resulting from and markets, higher year gains growth amid addition in retail in recovery In quarter, the gains sharp investment markdown beneficiary in QX. $XXX to and million Consulting Investments Brands, Advisory disruption. With businesses we improved results, continued not steady the but we

fortunate addition As we cash in investment our businesses of to portfolio. in operations flow grown, generating free our our from core position are material have the

see the uses profits for our we to cash While return that to it also portion to our we is extremely flow believe continue our we attractive a with shareholders capital, generate. of directly important

returns of which As regular our a substantial we strongly that a $X.XX balanced includes quarter, policy share, result, and to partners. that a have $X, dividend. we special $X $X.XX increase of per capital an to to per dividend or total feel a allocation To dividend end, our capital includes declared annual

expect the would momentum across we over see Given and our our prospects we dividend to time. grow businesses,

during we to the shares X.X our addition dividend million over In repurchased policy, year.

we been Riley's B. stronger, momentum While done. never work always recognize there's to be has

We to capital cost operations. continue to look lower of of our current our to at state other opportunities reflect

our onto later addition, by offerings opportunities while accretive Tom the seeing great lookout our some on business acquisitions, more call. talk on are we're of and more will about on and platform. people for we to in these bringing In the always enhance new

B. We of of north history, again is market As Riley to milestone in this of teams. co-underwriters process teams our respect combined institutional small to client enhances of XXX platform of of a and talented we built to capital a we're With XX-year our our and between leader our position in and significant, leverage growth working this talk a not management B. previously of together A on longstanding the Management registered reflected and should Riley opportunities today, about work our mutual and National balanced approach our of operating number billion. to see are million closing we deals. assets press a team gains. size. which of returning board National our will to platform. key cash prior continuing a the in of team our could have Wealth reps on. our continue is you from we Tom mentioned, in $XX distribution, final and year-end, history seeing, over division, acquisition Holdings, we our we're also excited our release believe through and respective ahead markets, capital is The with we see both B. as terms will be benefit the shareholders. $XXX member a to our investor National firms more as important We've note net Riley's as close our debt and capitalize and acquisition combined onboard more With at great number on mid-cap which opportunities take and earlier later merger as the National Together in to increasing retail will investments with in of continued and which while, share an have a respective

team Phil? turn it to but discuss enough, B. Riley can't new Phil we we the have ones to from National. we over said say and before, CFO it Ahn, people, us our feel incredibly metrics. I'll for it that, our and fortunate on the and our here With our financial we've success Lastly, relies joining world-class at COO,

Phillip Ahn

Welcome, Thanks, Bryant. everyone.

B. fiscal mentioned, terms for revenues in represented XXXX results Bryant high quarter our fourth all-time and overall profitability. As an of Riley Financial and

the up of of record EBITDA million share, $XXX.X for up $XXX.X available in up prior year to Total the Net fourth total income prior quarter months fourth to $X.XX up or the EBITDA diluted quarter for per million, revenues diluted prior share, $XX.X $X.XX the $XXX.X we common of from $XXX.X million for quarter. Operating million, or three shareholders increased Operating to $XX.X year totaled For $XX.X million up ended XXXX. million, XXXX, December adjusted the $XXX.X million increased period. from million, XX, year for from million, per revenues million, from adjusted $XXX XXXX. $XXX.X reported quarter. to quarterly the from increased

year, the the Strength book. the from of in also We XX gains For December up record million $X.XX markets million, year. investments XXXX. $XXX or EBITDA million, on company. million for $XXX.X million to year. quarter, contributed $XXX.X in investment investment XXXX. $XXX.X first primarily million sharp revenues $XXX.X Total $XXX.X for ended increased for by the from Investment XXXX. was of to represented or approximately $XXX.X for XXXX. from share, the Operating the million gains annual adjusted to for the per $XXX.X EBITDA recovery totaled strong for diluted These gains diluted for income strategic investment quarter total equity common reported for per up $XXX held shareholders mark-to-market up $X.XX for mark-to-market million, XXXX. $XXX.X increased to approximately from And million, performance to resulting months up $XX.X million, adjusted for operating the available million prior fourth up a from revenues XX, we saw gains from Net of million XXXX, the valuations the year our from relate share, of $XXX.X losses investment

segment units. quarter our and various fourth To greater organizational with B. some the GlassRatner Services. under With we we visibility business our momentum reporting Advisory including that realigned Appraisal the investors business business and of changes, end, rebrand of our reflect legacy Riley review of to our to the our financial reportable into our consulting during continue metrics our provide the platform, of growth our recent to name

were reported reclassified reported Markets we Appraisal results Consulting and and our estate segment, the businesses Capital estate As a the business from real release, Appraisal Consulting noted segment. underneath our was our in in previously real standalone and earnings segment. Consulting as Financial and previously

Capital to turning management changes, our in We the our our fund to segment largest and businesses. and wealth investment materials includes results and these now is investments relevant brokerage, have recast results. our presentation management for segment reflect segment banking, operating Markets so

for performance investment quarter million of Bryant that segment from former to revenues quarter. Liquidation of B. liquidations and retail Capital million strong revenue closing $XXX.X The the the $XX.X $XXX Great segment results Excluding by quarter and Riley primarily our significant Markets and of operating $XX.X for compares increase and This XXXX. referred to million operating banking fourth investment included operating gains, of segment earlier. store million $X.X income completed $XXX.X generated American million Auction revenues operating and projects segment was million fourth income by driven of Solutions, of group. in Retail income

our large vary results As segment year to retail due to noted quarter Liquidation prior projects. year on quarter earnings from we and the impact of calls, to liquidation can

the by prior million, forensic and $X.X period. the period. performed B. Financial quarter, $XX.X revenues prior Riley million, from income up $XX.X for for fourth bankruptcy, totaled the compared were assignments Consulting For were Services. million appraisal by Results Segment Advisory segment to primarily driven million year accounting $X.X year

Brands Investments related million portfolios, Principal fourth $X.X million of and for income And results the and of million. revenues magicJack segment, includes generated includes $X.X $X.X Our which and segment Online, contributed revenues of segment of investments United income from licensing segment, which $XX.X million quarter. to revenues our brand

and prior continued operating revenues Segment from $XX.X million. operating and from Now and B. for annual segment in million for segment operating the outperform from companies $XX.X $XX.X platform $XX.X of the million, revenues million $XXX.X XXXX. to million, to year. cash Riley XXXX of Capital generated up Auction $XX.X the annual of revenues income increased full income to initial income annual $XXX.X generated flows segment of million. Consulting Financial million in XXXX. million, revenues $XXX.X Investments Markets investment steady Principal year, segment $XX.X and of estimates Liquidation up income up provided million million operating and $XX.X to increased of

year, finally, XXXX. licensing Brands magicJack $XX.X established contributed and Online was of and in contributed million. income XXXX, of of million $XX.X And for which the million For segment, segment revenues full $XX.X revenues United our

Now highlights our some balance from sheet.

As $XXX.X which shares year-end, Riley balance investments includes and We million cash of of other in B. unrestricted repurchased debt, we assets. loan B. had in of Net over net of of XXXX. during securities X.X common approximately December investments $XXX investments and had cash and and included $XXX.X the XXX,XXX $XX.X and year-end. total cash million prepaid billion, loans and investments of other in fourth Financial's in sold. shares at net of other million and million $XXX.X receivables million Financial equivalents, stock million At quarter participations totaled cash over XX, our $X.X Riley equity owned

our Lastly, quarterly of dividend we policy $X.XXX. $X.XX as align We've continued our performance per dividend to increased our quarterly and our to Bryant previous outlook. to dividend regular review from noted, with share

The fourth has a dividends In dividend on share $X payment per units. of dividend, dividend to stockholders declared Tom? to this we to record fourth discuss of is common our performance. fiscal returned payable completes of quarter operating XX That have summary. onetime March our addition, I'll Kelleher, of Upon board a quarter $X.XX about earnings. related XX. our share or as will over March turn our Tom XXXX call individual related to my the Co-CEO, approximately to financial our in special

Tom Kelleher

Phil. Thanks,

franchise, earlier, middle established like to development clients legacy same As private Bryant roster an a existing and offerings to market $XX which is This of has XXX service With our National as to qualified adds over of assets recent National's our of respective opportunities. platform. B. pre-IPO complementary such and key current platform our billion piece the Management, Holdings. also Wealth market-focused meaningful $XX firm, time, in access our investment integral National is shares powerful advisory representatives registered our banking expanded tax provides close assets. new National At evolved XXX advisers noted and capital and combination the an Riley addition for a and our into platform, billion comes acquisition firms. of lines to

continued seen as our adviser have continued work integrate in forms division, priority platform. growth expands The and independent our advisers respective of talent. significantly in both W-X professionals channels offerings. critical We we equity profitability in top our also both syndicate of Combining remains our in terms growth this and National's National mass but our into with to

professionals' our solutions we Importantly, and broader capabilities. enhanced all through of clients suite combination investment this trading will well serve a sales as of believe only to increase for as businesses

the incredibly in excited our look the colleagues coming to to in are We and forward more quarters. National weeks welcome sharing at new coming

investment our banking division, B. to brokerage Riley Now moving and institutional Securities.

million desk. the through in expect increasing both for compared this was to companies. A delivered our and and Riley IPO activity leader a has markets Capital number business, On software for its served Tree As adoption quarter million QX restructuring & of subsidiary; few noted, sale the by a million We more doubled Advisory best-ever one AMC year more RTW than B. & Company; ATMs widely ATMs security best with include $XXX tool strategic highlights saw in noteworthy jointly SPAC company, Telos; New Healthcare coming final Shops past in meaningful for which accepted ATM quarter transactions. revenue as momentum the a decade, Services' broader Markets we Christmas as see yet. Riley distressed York IPO; Securities ATM several contribution our for gains for of the and Retailwinds' Bath driven completed $XXX businesses, QX. capital point, the Beyond's market and raised as B. Bed healthy our and are its $XXX both

Healthcare we in the IPO of in quarter. role $XXX was SPAC Services' brought million just one Our fourth IPOs the

we combinations. successfully three our helped close addition, In sponsors SPAC of business

others We actively targets. working currently are with seeking are that

Importantly, visibility into Markets our several activity represent each also down This the engagements business, mandates has with banking quickly of to future in resilient as pipeline. Capital closing contrast and both opportunistic established many these in segment, cycles. Restructure and cyclical and more up through strong, in QX tremendous more itself opportunities. remained and

quarter, the and our during to Riley year. in saw in the following continue lending under GlassRatner growth see Appraisal We Services activity fourth and engagements Financial slowdown the returned in significant our Advisory brand. division the new division, which to also a includes consulting and in We earlier groups growth bankruptcy Appraisal increase restructuring the Consulting legacy B.

As Bryant Advisory actively mentioned, expanding in the we are our capabilities group.

cybersecurity earlier operations we management During resilience new announced the and line. this service practice consulting. business quarter, And continuity ERM, we a new on introduced focused a and compliance week, risk

core of newest to our many deep areas members team capabilities. expertise bring Our that strengthen

these We introducing them excited to are welcome clients. to forward to to B. Riley our professionals talented and look

to offerings is great opportunities our this turbulent of assess A enhance to estate enterprise continue that very brought the new to and We commercial in ago, we XXXX, on property year year joining across of February capabilities. amid a service a strategically owners. existing core for real scale example group Since engagements group with XXXX, completed this services. X,XXX retail, led real restructuring projects spanning chains, pending firm, and health stores, year-end, JCPenney Aldo, our real MUJI Many the more by department ongoing entertainment of bankruptcy-related over estate including restaurant and these has in grocery, Potbelly, estate several were including project. completion and

store face retail dwindling value as and for Liquidation due X,XXX Europe, was to highly a carry Liquidation XXXX, in with in Turning overseas engagements inventory include lockdowns to and year retailers division, $X.X our continue we quarter JCPenney. we participated retail during profitable activity Mart sales. the over expect in Stein our also into XXXX, retail over Notable business XXXX financial completed to and stress to of associated closings, billion. brick-and-mortar

Online, interest United flow. Lingo, of of end cash provider. in steady XX% November, the communications At cloud-based we and companies, and service Investments legacy magicJack Principal acquired remain contributors a Our important

XX% We stands approval. meaningfully regulatory expect to our upon an acquire obtaining Lingo to The communications adjacent enhance additional addition investments. company necessary of

of late to portfolio We to established XXXX in companies acquire opportunities also At to to investment our provide be that investment that platform. source the continue to time, complementary would reoccurring same current assisting revenue steady businesses Brands the other we the portfolio, a with seek acquisitions. while continues licensing

Our our impact from earnings Justice we Brands this COVID November, the portfolio. year. from this earlier about added the optimistic In on We late brand retail recovered initial platform. potential to long-term sales portfolio remain of the

otherwise challenging year. of Taken proud together, our are accomplishments amid we an extremely

is employees this our providing closing to look and said, the dedicated with credit and in the for the continued year forward Bryant back clients and With momentum to we'll call turn best-in-class to service Bryant much than continuing that, their for over open the our year to the for deliver ended We of ever and line to questions commitment remarks. partners. As more our ahead.

Operator

you. Thank

go [Operator We Capital. will question Instructions] from question-and-answer now Cummins XXX Please the begin Wes session. comes ahead. of first Our

Unidentified Analyst

for maybe opportunistic as minimum this buyback to balance [indiscernible] Wes. implied such is quick Really dividend year. the $X love This on to greater dividend on color versus Lingo. for question capital investments great the get you as well how see on allocation. Would A you. the Thank as

Bryant Riley

at buying dividend. Sure. This at it one. bonds was our $XX, of $XX; years the discount. a year felt are And in XX% paying time, out we like at this five were beginning And year, in now we in points the stock

and different our best company about and And employees our the so thinking we're shareholders. options our and always for what's

And so way of in on think there's a things. any any compromised don't those We balance there. we've

We obviously groups purchased into a do the to of go of transaction, the we But And time, the meaningful we've to large of plenty we find our company. EBITDA said got think be to to always capital interesting have Lingo added we're National, shareholders. XX% target plenty same chunk our opportunities. more Justice, We had where cash And distribute would think point a at more. at we cash careful. volatile the of an to stable business, the inflection see get, now some beneficiary of we're that make it I we've And that. and is humming, the we're right just I that we've larger. done more as we're got getting company. beneficiary think of a sure it balanced. really is to and our things But a And humbling. a be be super of got But a can we've number This builds, I could

other as to looking value platform. the of for always we're Lingo, create As off far ways

maybe got we've We XXX opportunities. proprietary of and lot inputs that of now advisers a lot also will opportunities. have proprietary add And a

the there. some out SPAC of lot and we're going take a Obviously, we just have a some opportunity comes directly that see We've of flow, an that So two of proprietary to to flow. we that's for done SPACs, and company. think us to

where good are. we we So feel really about

But lot just – a momentum. been months we to that ago of we've those was balance make sure XX and have things. We have we we're a lot cognizant different, all

Unidentified Analyst

that. be then debt great. guys any we on go debt. your on And Or that continue on? of was to to That's cost below your cost great. That's your to offering, debt recent of Should should we current expect you highest as hear it XXX lower bps love color I'd able

Bryant Riley

of cash our all all and valued, Look, debt better. think I they're flow is how inputs the to

company. a harder to I think do a holders. unique That and a recent our than that. better of evaluate it with and a things. bond comes lot little But a debtors different different I we're you're to of would lot a at interest senior things. facility number baby able that bit of And for the got a do that in we makes think do think different and cost bit put are think a of on could equity we that right, – And I doing if most We've higher We And we there rate. little X%. businesses, you

of that mandate over important year, next and course started of the ours on an the So is that. already we've

Unidentified Analyst

be That great once Nice. you would again. Thank kudos. actually and

Bryant Riley

you. Thank

Operator

comes question Please go next Our of from head. THC. [indiscernible]

Unidentified Analyst

Hi, guys.

quarter congrats great on a a First off, and year. phenomenal

to realignment the think acquisition portfolio portfolio there segments, and your the be your do in in and be as Or acquisitions? that need holes far your you be are As National product with could continuing filled? opportunistic of to of kind you foresee filled the light of

Bryant Riley

sit finance, we and thanks areas: ourselves, day every we I had right? the leverage always for comments. There's could on group. good holes, expand going of commodities different to to don't Okay number be But thinking wish commodities. a a We

I lot is that that ability months perfectly, got We part our think we've good been transactions. over assets think transactions we we've up the the our have. $XX fits can where XXX excited balance over And led the are And market deal now put XX%. the about that gained of billion be XX I news have you of last think a advisers a and in to we've and of course is of sheet. of our the together done really team share if utilize National also

Obviously, made is have people So money. too. strong, the market

would But which that. acknowledge XX great the business wanted a to I to buy already that's just continue we're we world that, – look if best values. that. it's to and So and right have be not going bidders we've an for around. you found M&A But – we've for And the in hard that's now, seen add us, there

looking going just to for it. anything a it pressure about we're So to be and to that's good thoughtful we don't for do we us, merge do people feel an that, we example. buy just our we're be do going – or we But pretty that rush It's environment to with we're internally, but business. add any like build not it, any

Unidentified Analyst

guys whole is And were Because example. the running you I early increased Are then good into a competition? Eos on movement. relatively know SPAC you that

looking that not in You're to Is but at area. there's a lot “fuzzy” that private deployed being capital you? a of companies, concern

Bryant Riley

B. Riley B. as as principal to an not that what you're but to? referring Riley Is a SPACs? underwriter,

Unidentified Analyst

yes. Yes,

Bryant Riley

got we people compelling debt through in couple us. We to as with I see we And grew a We want there out to company of with this grew company. firm through merge whatever offerings, small offerings. offerings. through we've acquisitions. grew argument think group equity went merge equity a We all succeed. of the We that most a public have

So you have group. the all M&A

the group. got You've Markets Capital

side. good really have relationships the the sell with We side, buy with

– in. So of – we're just the then and trying proprietary to because from picking from we of we're think bunch we're a pick relationships business

lot a today. I could There's one see just I sit. fourth runway there's know would there. filed on we that's there's say based how course of more I have just SPACs where you'll say competition. why think not. more But our of And for you publicly So we so out many we don't

the there's growthy obviously, without lot lot of open So them. companies any and for be lot we us. Right but they're weren't now, going went Remember, of IPOs. you be public, a excites public, for that seeing like to more years – you're there's kind they think And great I just and companies really of open of opportunities. them, come a cap feel that a smaller markets should

So a amount runway think we still of there. there's fair

Unidentified Analyst

Again, Great. of out it you knocked Thanks. the guys park.

Bryant Riley

it. appreciate I

Operator

Our Paul Dwyer & comes ahead. next Instructions] Punch question from [Operator Please Associates. of go

Paul Dwyer

Hi guys. Good afternoon.

Bryant Riley

Hi, Paul.

Paul Dwyer

It's Capital more, a how Wanted on side. Tom of it in of any obviously little Could has on little terms Markets a SPACs of spend Capital Market that Capital touched that insights kind for strong. you more a but been to then underwritten you've Markets additional been the year terms QX provides strength? on And visibility rest in bit, you time spend into QX start into QX, and how through of in the provide activity? can more the

Bryant Riley

would last didn't have just in a banking. I the of year this. investment years We We We small been were that years this seven years Markets has a companies. and and started research side, small-cap look, So even in we for doing Capital on and start first didn't the firm. mid-cap say XXXX

made just investment – now XX people years. way time long the have paying so been relationships worked we've the that. with off with for are I some and And covered, the advantage here And for a they've that relationships take primed meaningful companies we've are to the a think of the in

Clearly, and and additional our and just just there taking and have have a opine brokerage the same to is of last an tide, think, the were operating I our added Over we're share. experience the of of benefits any we But to on we've here. knitting, expenses that's is market sure, sticking – business. on now team all years competition for we're here advantage a know the that This our year, to, we from uplift, continue ago outwork had rising people going the three are wouldn't where gain I that. that. really reaping to we not course I effect that

a been of earlier, and that, a mentioned relates shut window bunch it lot the we I are as say, a think time. to we companies for As SPAC I the that asked I've have long where of times for them there's would business, had in

going We're you're percentages broader out public, those So private lot of to assurity uber-growth quality institutionally, the institutions. there's I think brand And change, companies. How think getting you're to don't a may that just have of public. really companies placements seeing but going not think breadth with companies work opportunities. done maybe I I go to know, going see help founders' I a

our of expired and And SPACs back-end fee one ones. of so we're got had out doing and is I doing a the where think our SPAC has yet, is a we months there, deal. newer there's we've was total ago, number that lot including which not XXx have biggest nine it today, opportunity without a Obviously,

take business us. of the just to So the But of that with try take of for bit little salt. investing approach a grain kind of with we churning sponsors, not being a

building have out them with there's complete fee importantly, hopefully good help access long-term will to a with really million-plus SPACs relationship there those most opportunities obviously, capital and, and a public with deal. a But companies. that private confident And needs we that that their the are placements. $XX we feel we them back-end public taking company So help

SPAC. about this firm. that the relationships Did So just is benefit the not answer It is longer-term that? I building

Paul Dwyer

Okay.

guess next National of You kind the did. I That's touch management perfect. I to wealth just on your – platform. overall the part wanted was

just that basis? it's your predictable standalone can like $XX-plus So one you with more a assume I business what of billion businesses? assets, out And of flush on looks the

Bryant Riley

towards regular-way over kind brokerage. of move seeing certainly you're a Well, advisory

super has the in going the put be – been independent. a great on is seen National wealth that it's now we've is a again, – management, that infrastructure we We leverage we're assets. and particularly that management makes our to to it great. a infrastructure, already team excited. hard done business But the National products, that think for advisory hard we place about going be being and great like – to independent business, think and in really fit. it's the to is that And side, you're the So The usually job, so able and our it's National that thing they team,

embrace really We have deals. network embrace and the seen our research National our

be interest would the together, profitable their get would of clients, in to they'd five business hasn't the other been expect for years, you'll on and Usually, a have all that, so negative the interest of benefits and And the will their side hope margin away. And of in lot a then $XXX of money, that cash money a we and from on get from EBITDA rate excess million factor. that a doing old least recognize revenues. greatly the But make bunch XX% on National a getting that. at really been of in have that we money also piece went days, a rates to

I we So we've anxious the But together. about that's in have it think and our to compelling company, deal deal, the feel public now of can not willing that take been think little being that like of yourself, the we to we deal our sheet done. have a use kind think bit But there, time. have might a I offering a you to most part number, think a retail network. company, and I to out too. is important wants And And clients, utilize of put got balance deals the get way participants a only and highly then that do

together really, really those so force. all powerful a us makes things And I think

also of which referring the of one wants owns or And it, there's benefits. that to of benefits and rep things. also there's sold there's kind the a to buy wants a a other financial So their clients company I be but side National outlined, of

other it lot we've to of and we've so acquisitions. But And need with with all GlassRatner it done put acquisition, that together. done a the we It's work. hard

we So just this that that. enhance think will

Paul Dwyer

Okay. little business on Brands one, turning side, in for That then, typical? you margin the nice I how Last X, sense. me operating sustainable guess, a is makes is and XX%-plus seasonal for business? that guys. the is And

Bryant Riley

provide expenses. business, they to most of with just Group, we operating relationship a and Bluestar brands on of all those have So describe that the

as, of brands. minority So of those just partners, most think partners, us part, the most in for

XX%, to X.X but own The So years Justice, they still Hurley, own we own that. ago, we manage XX%; we portfolio closer that we bought X-brand XX%.

So margin. should the you be that numbers mostly us see report

So that's sustainable.

a minimum business works, there's brands little better cyclicality, a there's the get so summer, the overages. winter. a most from not way get licensee, and you of a license that's of these, the some But of in that or the just in ton. other terms you you quarterly the better and is understand then and bit does Hurley In do monthly, paid

minimum And overly pretty that I wouldn't consistent; But could going you the that's be seasonal. anything little is say to noticeable. be a the overages to it's so

counter good things the business with that. We – we'll more we love some to we recurring. we do is to a find with we always that this So love and the and And us our that think them. say relationship guys that think episodic for Bluestar have

Paul Dwyer

all Okay, great. and nice hear Really thanks That’s to it for the for work. me.

Bryant Riley

Thank Paul, we appreciate your you. support.

Operator

[Operator Instructions] Our next Please question Capital. Rosenbloom comes from of Keith Cruiser ahead. go

Keith Rosenbloom

First, I your just congratulations. a want and a year What great great all job Bryant. team. the to quarter, Great from reiterate

Bryant Riley

you. Thank

Keith Rosenbloom

that about. something on a just to get color You’re welcome. little questioner asking I was the prior wanted

for have lot pipes seeding the mentioned you guys a you're future. time every to the now business effectively foreseeable have SPAC. close you have? as earnings of back-end Do You a You this fees and the marketplace, the into capacity investment you banking an any like sense seems put

guys earn work you think you you that do a could the a obviously, that you time Do able potential a concept revenue then the the SPAC, of pipe, the what You're, fee. And and to do get backlog? fees you and as M&A obviously, have do of you've assuming SPAC are close? a closes. when you've every any got pipe, be, business itself And potential got

Bryant Riley

increase, I a done increase, $XX pipes fees those have Managing So the deferred there's room $XXX deal, approximately them. that, our start that all But then have extent exciting. and the There's as firms it underwritten. than a $XX-plus million of SPACs that of bracket. I And really get can that's some of the SPACs we're there. of when would say on speak advisory doing, me million de-SPAC’d, you up of what And I of lot specifically sudden can involved the more kind platform gets brand excites other other we bulge already we've the of fees lot a our to not is to than think when size running continue deals there's to we see where a the IPO, picking the or that is what million a deals. with

that I think every sell in we're to and bigger we if way our a together put and said deals or cover a some we helps see that's going and every a bigger relationship SPAC a outsize relationship. ?- to we be a you're previous magicJack in right, to them time utilize able need can. We'll start this opportunity. call, do to some company, it fee every And I we time

got got can So any Appraisal help group and former about We've their Advisory. that evaluations. that help we've with got new our can GlassRatner them group We've assets. think businesses them the the

a us take those have And of us. opportunities advantage to benefit. together as And so obviously, can't pick opportunities for lot that. and the should great do monetary those backlog just it advantage that I like has, and take And of think sure of relationships. relationships I we've a And real. all of to backlog. really number, there's for like got together put create feels should but is have we put feels now And really, it a about make SPAC we

Keith Rosenbloom

again. Congrats

Bryant Riley

you. All right, thank

Operator

the our question-and-answer Riley I'd closing concludes This over to now to like his session. Mr. turn call for back remarks.

Bryant Riley

the and and support, And Bob really and very have much. including we're to employees join all all couldn't the have the their all people investors appreciate we and partners without the you all team with Laudati. of National really this brokers, we thank us We have. Well, we do excited

look So quarter. much. next to thank very you We forward reporting

Operator

you. Thank

Financial's by include will not I expectations, that harbor Statements call, any cautions which call. Act within today's statements Securities be could XXXX. prospects to subject discussed here provide made important should and facts statement, various Litigation and Reform conclude forward-looking Riley forward-looking this that of the statements These we the are actual B. explained today. with factors statements future Financial's risks earnings plans statements. COVID-XX as required B. made ongoing and undertakes discussion detail today pandemic publicly update of these statements new detailed or risk are filings in of for or the obligation and such conference quarter otherwise. for B. and in the statements Financial's unpredictable other during the this may includes Private historical full Riley events uncertainties refer fourth for statements Before company Riley of uncertainties the are forward-looking those as statements matters today, factors no and and more regarding as about regarding Investors the of XXXX safe Securities future the made as the materially call All during of Thank to company's except law, to results because year and constitute and filings impact differ well forward-looking whether any meaning risk from aware other risks revise forward-looking cause a that to call. information, any joining forward-looking of Exchange Please Commission. you

now may You disconnect.

B. Riley Financial (RILY) 27 Feb 212020 Q4 Earnings call transcript