RILY - Earnings call transcript Q4 2021 | B. Riley Financial, Inc.

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Operator

Good afternoon and welcome to B. Riley Financials Fourth Quarter and Full Year 2021 Earnings Call. Earlier today, B. Riley issued a press release and presentation detailing its financial results for the fourth quarter and fiscal year 2021. Copies are available in the Investor section of the Company's website at ir.brileyfin.com.

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

from Riley, forward-looking we to now will turn Tom Co-CEO; today call over Co-Founder before conclude remarks, we and us will B. the And Bryant I management's are call, questions. Joining I line open the Riley, COO. and After Co-CEO; Phillip Kelleher, and statements. provide and Bryant will Co-Founder Ahn, please Riley. Mr. CFO Riley Mr. for today's necessary proceed. cautions regarding the Chairman,

Bryant Riley

Welcome Thanks. everyone.

total We quarter caps of an and quarter are Financial. in adjusted respectively revenues EBITDA and and increase pleased important to B. million $XXX was fourth our generated report The off an another $X.X and a operationally XX% adjusted XXXX XX% representing revenue extraordinarily XXXX strategically, EBTIDA. financially. for an year-over-year successful total where Riley record in year year us for billion B. increase we Riley for

During XX% XXXX, follow-on operating Riley a raises activity raised reputation we delivered partner B. adjusted across growing companies. adjusted in increase nearly to banking In the $XXX operating robust thanks billion $X pipeline XXXX. of SPAC banking a resulting Securities investment underwritings, as issuances operating to of translates midcap revenues IPO total as in operating underwriting, new In preferred leverage and our to and in million. This extremely billion in [ph] and small debt same strong a EBTIDA year-over-year EBITDA. revenues XX% $X.XX division results our increase totaled period,

market product and B. years, our last brokerage meaningful the X Securities our earnings. Riley offerings has businesses extending Over share, gained

and take what advantage members is a markets. team to significant shareholders in differentiator important we want competitive believe for of view capital discuss our I softer However, and an a moment

offerings months. and aware, likely you're Secondaries last two to IPOs, over halt come the have SPAC effectively As a

in be we commitment bottle expenses. through will B. or subsidiaries, will took to month, Great discuss these XXXX, liquidation XXXX. including Group retail impossible time, in Business, is business a business. by we we how expanded most And have briefly Since companies recently, that this FocalPoint our is to managing and predict B. FBR Financial last to closed, While When loan American added of of why primarily operating consisted purchasing public collection communication and wealth I accounting two we operating a licenses, brand effectively telecom a assets, and to long several markets diversified it support smaller the cyclical slowdown our assets. complementary Riley retail two believe which businesses, management Securities receivables, want forensic acquisitions Investment a of business, business litigation Banking four portfolio, portfolio and Riley highlight restructuring which

cash share the generative uncorrelated opportunistic and purchases and these of characteristic of design. All This assets. mostly were flow being common was by

sheet. a this interest income This servicing derive It involvement. interest goes investment in have create generates have public In our clients to to approximately we a we of way in portfolio billion often Approximately important level term and businesses XXXX annual of would excess dividend, XXX and of approximately approximately third annual XXXX, million, horizons $XX appreciation, capital of servicing million could after income business, $XXX Riley our private portfolio and XX we view flow that cumulative million cash and you still investments pay is investments of is full a enough our add million $X income. almost cash significant When cash have business debt Securities equity operating and were to used B. if assume bearing EBITDA income where conviction from respectively, of annual interest board consists utilizing while and $XXX no equates from of to put our an a securities payment have EBITDA long and $X conservative taxes. taken this to dedicated generated deep addition, in perspective. of assets in and strategic investment generated we XXXX, one a these medium-to-long in that over which and million to the of balance million a to stream, our $XXX interest that

with objective on a proprietary provide dividend. Despite hedge our market flow expense our subsidiaries, an diligently cash platform control. decline, continuing make to this types of opportunities is a that offers to a maintain against goal increase to utilize robust Our a to these from we our of opportunity focus regularly investments our

XXXX. and enhance $XX a to allows three that, our the business Phil. summary, provide B. And of I'll acquisitions, focus I markets. to shareholders Phillip to more to cash the make dividends with our highlights provide now Ahn despite plus metrics. us levels our than cash by every total total to broker our believe capital our across Riley shareholders shareholders. around brokerage when revenues return and to $X think correlated only utilizing With our quarterly turn in will last return In dealer more to discuss Keller, have factor units. B. to COO to will revenues Tom business, with contexts our some Overtime, This we Riley call breakeven flow struggled our minimal our cash have operating then Securities accretive Over about delivering Co-CEO the you, a business key flow who will confidently dividends general CFO that the XX%. we doubling, in strong increased correlation over Over will years markets, to was our more the on our for of profile in for year, common related earnings I flow continue Financial, current

Phillip Ahn

Bryant. Thanks,

a for Bryant ended reported quarter XXXX. As year results successful XX, very noted, we full record fourth and the December

X% $XXX year period. $XXX related a on of B were revenues $XXX revenues basis, Riley to consolidated from reported million, total prior quarter for quarter million EBITDA was EBITDA a or fourth for fourth the in adjusted million increase Net Total year-over-year quarter available diluted adjusted was Holdings. the National fourth income to the $X.XX the million quarter. fourth XX% $XX Operating operating of the per quarter, acquisition For was $XXX million. up share primarily of and shareholders common the

XX% up EBITDA full Total revenues the increase the year For to million, prior year period. year of compared an was XXXX, were billion, $X.XX period. total from XX% of prior adjusted the $XXX

to increase Operating XX%, XX% full strong EBITDA business, year last year. a were up was compared EBITDA and Increases in operating million year-over-year while of in adjusted $XXX from our the operating primarily up income for $X.XX shareholders diluted related was in year, share were $XX.XX to investment $X.XX banking and revenues common from per the net billion, performance acquisition $XXX a XXXX. $XXX diluted our share of For XXXX. or available million million approximately to National per

to which and our results our brokerage our capital banking, operating from fourth investments with markets, institutional Turning reportable segments quarter, in and investment includes the management. starting fund

revenues year-over-year, in represented of $XX a gains to $XXX Segment comparison Excluding of investment operating prior million, several SPAC capital X% quarter income mostly our million, in strong particularly fourth down a which which quarter, result was the decrease XX% year-over-year. a fourth transactions. was to operating the totaled due year market the segment as

by $X.X respectively. the slower XXXX. and from revenues increase February and $X.X a related this primarily segment of in income are part segment revenues wealth were $X.X segment retail million. to Option impacted million increased in million our liquidation latter which to environment Results segment million $XXX the management, The Turning loss XXXX. National was we addition segment Holdings acquired and to was of liquidation

due to was nature restructuring $X.X retail liquidation revenues and stated of [ph] estate results and engagements. investments in As our These on credo partially real steady continue financial of Online, in [ph] And United cash lastly, companies this segment revenues brand during $X $XX.X income respectively. business relates offset segment business. the of of lower to to trademarks. overall and our Riley B. revenues having our and platform. from episodic the licensing provide Threats Financial segment consulting income contributions principal to flows of advisory the activity segment from segment and million to consulting Marconi communications companies’ million $X.X quarter generated large by calls, continues million to segment be our magicJack, totaled The the $X.X prior $XX.X million million tend variable segment of income make brand million. platform contributed

million. revenues million. segment million and and our of of For million of and up of generated generated XXXX $XXX up revenues million million, and segment of segment operating $X $XXX income million the operating income operating of $XX income from $XXX full Wealth markets million $XXX segment revenues income segment segment segment year, capital operating of $XX $XXX XXXX Management of segment revenues from

the Our Financial Segment results for million Liquidation for million from up segment $XX revenues million. of and were $XX in from income generated the and of $X consulting million. segment segment year down $XX income income Segment down Auction million year. prior revenue increased and $XX.X decreased to million XXXX. from to year revenues million $XX.X $XX of annual $XX of million prior segment

generated for compared companies’ $XX communication $XX in And investments the year. prior year million income prior XXXX. of $XX million year. million compared was Segment compared in $X year. to to principal for revenues Our $XX million for $XX in the $XX million segment, contributed compared the to prior year the million segment, of the finally our million million income segment brand to $XX in licensing was XXXX loss of a Segment revenue

find and As our terms refer supplement a our metrics the related for also non-GAAP and reconciliations operating details measures. financial earnings in can for financial GAAP release additional the reminder, for relating website. to Investor are EBITDA Relations these Please of definition to nearest reconciliation our Investors investment these adjusted results and and metrics to measures. to

and per call will Upon $X fiscal returned Tom? $XX on fourth a That in paid the to quarter our December now dividends shareholders completes fourth common our of payment about per common shareholders to balance Kelleher. dividend I'll share, XX. to XXXX. million of $X.X of summary. the turn other billion, related year and my March quarter balance a December of At And some our at financial Co-CEO Financials, dividend, be Financial prepaid share to to over other total approximately we had record as of sheet. or declared will March stock cash in and of highlights totaled have which XX, common quarter our We million night. approximately unrestricted billion turning investments cash end, we other $XXX includes investments B. in total Net approximately XX, receivable. and Riley million cash and $X.X and had investments equivalents, Riley net of assets. of from B. of owned, $XX reported loans $XXX approximately debt, Now securities cash $XXX in At which million Tom investments

Tom Kelleher

to an our include another Among continue Thanks, Phil. and in of strategy the complementary as for Holdings, of fourth but unpredictable to and year XXXX management also Riley private increases industry recently, our addition Wes This not challenging and expansion practices, consulting only of significantly the of addition resilience our both up of of saw our the integration added to to amid Asset products expansion fixed combined many XXXX. to addition our income year, Cummins our quarter which The the risk talent and practice Securities, accomplishments of The and lead expand of well Management we environment. continue of and to capital record National practice addition and due compliance as critical suite, on materially leading head currently advisory the XXX initiatives past the by diversified FocalPoint is which firm group, B. the we execute in personnel, QX to The brought underway personnel markets fund, Group. capabilities. our the business. be ended continue Riley adding with most it's M&A Sullivan Tim B. a our

number experience enabled our has a in remain a across key B. of Fortunes business a and differentiator to factor fastest philosophy platform add on industry growing our companies why we to despite for labor named leading professionals to contributing in compared market. the competition. diverse Riley us business tight This were There's two XXXX. Our also view

about fourth a like to few make year's comments last I'd quarter. Now

Riley to B. Wealth the excited practices will and suite specialist Fossil the in business legacy full to is Acquisition investment the activity In of $XX the acquisition under historically that combined that best Riley able for With approximately noted, to growth synergies was Holdings completed the deals and to across acquired by our offering its impacted along National fourth number notes assets merger be Group. investment markets IPO million Bryant In of our in digital Spartacus together fourth $XXX In States. As two our market continue recently banking our offerings operating share be work and the transactions These NextNav, to billion, we continue flow with clients. about a B. Management, capital between the stronghold liquidation was XXXX. quarter, banking potential of recent and generated platforms. stable combined create of a cash all and we FocalPoint, strong slow demonstrate within business. Liquidation segment, mining, performance M&A Auctions including Corp. the our and United with Wealth retail quarter bring management

of activity Europe. domestically group level has in While the higher a enjoyed slow,

of process Retailer Badcock XXX a sale years. behalf was the was stated quarter In sale we've to nature, Group, the University retained construction to will vary million price episodic property unit, at is on liquidation prices Estate housing in XXX achieved per of of in retail one unit sale W.S. calls, our As a apartments, quarter. within The the a student market we the XXX the Housing $XXX strongest and five Development also on business of XX Furnishings earnings the Corporation. asset from midtown earning via new Florida. past Student sold were portfolio and of Bed closed Home Real before leaseback We sale

business, to our includes continue Our platform. Financial opportunities legacy referral Advisory American GlassRatner across and Great Appraisal perform legacy consistently group Consulting and division generate which Services the

active this remained where have corporate financial restructuring environment, share Our taking challenging particularly bankruptcies in low. business has very at and a is been market XX-year

bankruptcy prospects difficult team are advisory returns. future continue cyber services that in Furthermore, the Given as for environment the practices as optimistic in we our our a to previously. performance expand business mentioned restructuring consulting security environment, with of normal strong offering I we this more such our

mobile continue our flow we investments business investments source flow Mobile the United Airline phone principal communications XX,XXX and on CREDO platform. Mobile expectations virtual to the platform. to Our perform the the West our fourth firm. add another We company including our principal In to of is operator subscribers. stable will based services providing quarter, cash acquired to a added and magicJack while CREDO anticipate cash to Coast the CREDO providing above

Lastly, to levels our investment activity business in continues improve to brand as volume continue recover.

and larger digital venture companies, been while the has of in directors a and Brant. a expertise year Renée for appointments been continued long significant we Switching brand consumer with CVC to expertise additions by strengthened Riley. Riley and Our has worth substantial ESG and wanted reflects I the space valuations. to and [ph] multiple with at brands firm's We've respective flow. bring an is business highlight has been capital very the as has executive of their successful in LaBran generating Renée by our from technology HPS investment and that that expanded there past both mentioned funds Tammy investments of goods by space, including matters. brands its been the the they Tammy returns media shareholders. some recent authentic B. uncorrelated Renée deliver time in led that Tammy addition We've executive our board brand service be business embracing noting It to gears this some services to board cash ability activity of remarkable as and Riley B. governance to and initiative. media B. to excited

our echoing close we been and call. end, foundation progressive to with force better the can think While have Sugar like all continuously Leonard to the like dedicated Toigo, charities of always would respects. the we supportive To out that consistently and the Ray to network, that we make to programs strive I have like by task at encouragement top internal women's a we firm some of formed sentiment better. B. in always like Bryant's Riley do and

into to another this to and strategy. business continue to year will last in for XXXX the from B. perpetuate over capable we record generating B. Riley and and flow years steps few diversified lines. taken multiple have platform been talent revenue complementary grow invest We cash of Riley a has businesses

looking are We forward to the ahead building to and we our year our the clients delivered and value stakeholders.

As we type success that to talent always, able been is the our the generate remarkable professionals B. Riley many with this we that have of of year. had have

flexibility deliver members tumultuous turn our then of and for want team remarks. closing questions, another help With And now Riley a will to all B. demonstrated so results over shareholders. I for thank year Bryant commitment and have open back to to we who that, their our the record call line to

Operator

question [Operator Please with Instructions] Associates. Sheldon from Our Sam comes first Punch & go ahead.

Sam Sheldon

more Maybe their taking questions. the Hi, areas could within for how leverage B. my expertise can multiple by thanks Riley start about across FocalPoint deal specifically you you and the talking platform?

Bryant Riley

Sam. Thanks, Sure.

We transaction So them XX the and an actually, they really number exciting grow literally ours. street from FocalPoint scratch, has about is a them started of when offices, and us times business team of their from FocalPoint, watch talked build ago. reasons number for had We to build years relationship. across saw a for a their

excited an had opportunity to think combine we so about we I what are And forces, that brings. both incredibly

M&A. is strength FocalPoint So

FocalPoint type where capital Riley markets or on think is I just in has public that companies on companies look equity. debt worked B. companies. both private at has, mostly strength equity and financial of our strength, you if is it private

markets prime a their go And the have banking incredible advisor, have these companies on we've their so been side. to source where public we been capital M&A prime but often we source with not relationships

off experience, goes professionals in, experience relationships. firm, a lot and of a conversely, relationships. building markets, experience, of to be with of then of haven't hustle public brought of first-hand that the that, that had understanding that all tons those And with to So on relationships companies takes, type able leverage same and, with their what those had bunch own FocalPoint the that we

about So it about fit. a whether to public really thinking that a means, is company helping ideas, or public going perfect them think or selling

were a time spent long two, leaders So became it's and really very we of of their and built them, similar up started we a you culturally, by period time, of companies team, a over lot have where culture group a their that segments. kind then think, with very in small two respectable

think -- example I it's one equals one three. So think I of a classic do it's plus

Sam Sheldon

slowing Yes, yes, the levels two acquisition, breakeven it the think to guess, how how segment. now interesting. team that over does do And protecting Capital this for market the last and how with years the has activity does sound the been capital recently? Markets really change added with downside I about much you

Bryant Riley

with do, a a you we a put So started and I grandiose probably way basically a, like money. of means for in us, run I guess little business manage downside statement, variable kind a money which start tell overpay don't That's model. bit lose their just similar and together they more of business all have that's they FocalPoint costs a, could but to a that you, they started you, your you they and the you so upside,

get it, lot the say would fixed even thought because tell about be very lose really expense, from business a going period in money. And a go is the COVID be I honestly didn't you I'll and very, they the profitable difficult. So to this haven’t

Having group like thought said GlassRatner, we've own we to able where and were to we're before, So I of started that is infrastructure. in be that, additive. brought just their a think about leverage which going the business, a off -- our talked they're it’s

I referrals. our business by think XX%, we've from just increased

just So it's I than opportunities. to to be going lot think incremental revenue of it's be going more far add, a

Sam Sheldon

activity. over Okay, interested share you the just that gains you your capital attribute in I'm how surge years seen of hearing market mentioned, markets capital few versus the much great. prepared here, in Bryant That's gains that helpful. in to share market And, markets we've last growth remarks.

Bryant Riley

I don't general I small -- will a cap IPOs. speaking it's I and but link defined think and that from, XX. we my little send So on I as tables me, a going ons think but XX, I'm from half. then were to going you. And have X, were and and is XX in I be broadly to XX market a them this billion We've we gone follow and bit, off be to Sam, in

think second. were we I

send thing. doing there's you. we'll doing same So But to much pretty same, is clearly market the gains the share to been a testament those

career XX to have stuck for around cap been our whole we years. We relationships, Our some great markets small built netting. and

we'll but So of the get specifics that. -- you

Sam Sheldon

business, we hear. you about great. That's Great question side what the which update there? Maybe last heard Auction seeing just pipeline with about on recently. Liquidation as Thanks. to My Auction just can Okay, really much us significant. you're haven't is the Liquidation on the

Bryant Riley

Yes.

domestic So done runs take general. job always positioned then this and dislocation little and most business. time and no opportunities, of finding me Carpenter And, we group advantage, of XXXX, a all bricks the retailers is good know, been in this me think million -- excuse a been they're, I theAuction EBITDA division Europe. has in very in Group every They've to made and overbilled in That tells you Scott and is business has time. see retail $X any despite very

retailers if this we is that. that whether course it's talk over not and a news is retail. capital group. XX around ready some to about not think it's bills, you need the years, also advisors that There of an other a the going for Over The last other professionals large and help it's appraisal in group markets ways, a been have you they're he's business, just in I when be good

but tends is go to in ready deterioration start ultimately very see to now. to if So economy, build, right some which but, as over happen slow it's, the you that business domestically companies

Sam Sheldon

questions. my Great, thanks for taking

Bryant Riley

you. Thank

Operator

Capital. Please go Rosenbloom ahead. with Cruiser Our next from question comes Keith

Keith Rosenbloom

Hey some you the of I Thanks put was for Bryant, guys. context. business taking in could call hoping the

FocalPoint times M&A you on in release mentioned existing the You press profit. would hoped it do your operating that four

that I is correctly. sense and is? starting us and of is means that said What your what the when that ending terms when what a XX in of think I that for might Could happen? give amount what you the thinking amount

Bryant Riley

the advisory think that of combinations business basis bring, a million. I after M&A talking after rate performance transaction what about are XXX combined bring. on at what a look the on the is size of and the the the bring, a in around And business we Yes, and run what does the opportunities

strength you been know at do and looked I we've business, you've looked an Capital really bankers, our As and some what we but this really great Market leverage M&A a advisory was have could were shots deal. we be that And been there but from, built, have we've We three a needed thought to big areas one. that's know, addressed. great we M&A from so we

credit big fixed big and a one. a was was and income Management one Asset

if truly many, could service to them we the and markets. us, that all in segment I we've that got in for they way we've so have, hired ability believe have a been had us straight public place. And have really the pieces particular opportunity, M&A would companies or they, are capital we a if just, relationships those with many that had to years of there have because the And side, if they lot

for business you. So size of the that that frames

Keith Rosenbloom

Thanks.

of say from questions come markets came let's what has In revenue more that. XXXX in your revenue on the underwriting capital fees line, couple a specifically? Just percentage

Bryant Riley

Phil, do have that breakdown?

Phillip Ahn

yes. north don't up follow I – have for We that want here. to the -- Keith, see of XXX year. we say offhand. it's, I It's with you. Let's it's venturing can

Keith Rosenbloom

what perspective, of could research are is Riley in also B. terms let then, universe? FBR in companies that you number currently the And us Okay. the know, of

Bryant Riley

Mid four hundreds.

Keith Rosenbloom

Okay. the in you you just And league table were you in Q&A. the now, mentioned that lastly, were

yield look more as peers? excluding and Your a Jefferies, paying Who as public in mean, at of that's terms investment your multiples Piper your that's today, when you're outlier. you I real specials. X.X% dividends. other dividend now Cowen, you do is company banks, that's, see, as of peers like And

Bryant Riley

It's is I board partly And the advantage on and that, our we to flexibility years before maybe for that saw board have that. of funny. we, there's went We yesterday. we that a had grew do. up our board things companies opportunities public. not founded to that conversation take because that's meeting we of And the of one the lot we my the this company, many said And

think I hindered side. our call hindered, a are of a more dealer lot investment or just one are bit competitors little that just broker banking let's probably on the but focused segment, not

lot a and dealer, don't proprietary know mean, firms We they I So that. willing KKR, I and out in, But a we think to there, our comps investment to with it. their some invest advisory, main these see banker, a opportunities if have where I do and there's are would of focus differentiates really opposite. dealer, the we and is, us. I they say, broker have like there's they then is private do equity, broker of we're utilize lead that kind that really

don't, how So to our returning think grinding same of capital the not keep get just but I how our present comps, time best the of just a focus. sole that's another at $XX -- let's business keep rather and, on return I while lot building we're our That's shareholders, our business. it's paper, -- to our piece on don't, think a out don't about in like building to and did Keith. stuck our and any I box we

we think bunch I anybody know, platform, the don't could through we we there's that a know know names, do. think Jefferies, the takes like I competitors. you So go and But of Cowen, advantage of all and we

Keith Rosenbloom

Then I'll sneak in. one more

you of Can you you have a guys XX the terms capital your been us on press obviously program. timeframe $XX share in on what which million terrific repurchase talked release on. that give returning In color about is to some Just today, shareholders, million?

Bryant Riley

at I our, buying or the I No, we, level And to higher than you right our year shareholders. we price it really. there was insider or news want not mean, we'll last our at these opportunistic; think buying math, look if levels. if for be a do buy you the obviously

think And that don't level. we so obviously, time have interesting a but set and are opportunistic, our shares we

Keith Rosenbloom

Thanks, guys. Thanks, Bryant. Great.

Bryant Riley

you. Thank

Operator

[Operator will Instructions] ahead. come Haydon go Charles question Our next Lane. from with Sean Please

Sean Haydon

for question guys my Hey getting thanks here.

Bryant Riley

Sean. Hi

Sean Haydon

question, on place was kind to or seeing of is M&A? there? of in add opportunities special piggyback this guys thinking the what just Are to new what authorization more So last a through you that

Bryant Riley

you about the authorization? -- buyback you're are Well, new the authorization, talking talking about the new

Sean Haydon

Yes, the incremental XX, XX. the

Bryant Riley

investor our of at been look steady presentation, share level level a dividends. steady you'd level XXXX, you there's if mean, I and buybacks and a to increasing and back of go

So in it the is that of to back, better you of shareholders really the know be buy of flexible beauties one to or your return capital business that. capital of about some and markets enables maybe some others, than your times that being you

into it’s been but buybacks. always on that and, I we've anything to buy it. than taking advantage are there time opportunity not Other but had to opportunistic, a the So we've buyback. wouldn't But like read and is first we've see out of of this had always we've dislocations we we opportunistic, buy, not always done

Sean Haydon

like we just but for for in just got on takes modeling what markets, capital add I know went kind assumptions to And and about purposes, you can modeling you it. Looks talk add the, down, hair, yes, margin should operating there? of puts there. can Okay, just wanted the then a just it

Bryant Riley

to a this a there into deal. ask so dynamics bit, but many that there's go to Phil speak markets capital are There's, different I’ll

one. give I'll you So

right the might For that houses little left. than the on a if be in a deal margin less a on capital we left, we're example, markets if M&A a capital deal, bit deal than do lot a higher markets

Somebody dip. because is a the transaction, double high, a really is and who we is producer that executive don't margin

if a example, for So in that's really I a high bring deal, margin.

So of a variety there's factors.

shares. Another issued enough one just and do this is, I'm sure founder capital market very those go SPAC the a to the because and correctly, the don't way just into works, getting have but margin and they high get saying this business, this, really accounting we're side, when a film, those is make and just we founder go shares we

quite around Phil, But move can want to you bit. it generally add a there? anything in So

Phillip Ahn

lot think It no, is a right. there out markets. capital I to I Yes, goes is -- that think you're

So be it difficult. can

up stuff that or certain, some things fees, whether that fee, advisory D I high it's have have we the of brought Bryant margin. very certain think spec moves what is fees significant kind right, where a

so why some see that's you'll there. variability And

Bryant Riley

the But be kind not have business incremental general, in side XX%, and about that dollar way our over every a to think we of we is, a fixed knot, of the have a should somewhere kind capital in margin. incremental around market

Sean Haydon

will is at not Got of it to I it? are there to costs, off the that FocalPoint assume of but right integration course, accretive be that state, bat, kind understand And safe margin? will steady

Bryant Riley

in the guys costs. And they run to across of additive. there and really to integration So, how way know these be so their business, Literally much won't going be street. the are they're

the where going advisory So be in you wouldn't upfront maybe see will fixed is of their then will that. margin side, incremental and I they're, be on banking margin profile little more be their especially traditional costs -- business, higher, their higher, higher. where type to a bit

market trim bankers sense? an and all and don't margins of together of Does as that margins. high trend make advisors might that then do, So, capital have usually have upfront kind like cost, the our incrementally where we M&A

Sean Haydon

I Yes, if interested you're thought had new rate couple entering ago, of that holes you you in And something regime sense. and in question, portfolio, credit as a last you of you what you'd -- about? thinking still And or then, asked that Is your one mentioned makes given kind be them. you had a years my I we're here. something think

Bryant Riley

Yes.

more. have, we we've there. a a But hires lot announced So couple added we've

build. was business. we of we President investing career who long us, joining the to could aggressively or Sullivan, bought, a Tim that we found before built and bringing has person firms that that in he's was the We and think building or Imperial tasked team And built with in out, right Lehman have are like and Jefferies on the

private that's, ours. big you baby that capabilities But elements got a some added has really really the private don't a will that so and But helping growing be with bond business debt, capital will FocalPoint companies business us. area see, of other to for don't, have that's aggressively. those strong focus of that, will next placing a We've see in forget debt, business. of meaningful you we So do year

Sean Haydon

I just rates then have modeling, customer it from I sorry, National And rising gained last for Again, want from one one. it. Got benefit does any quick cash balance?

Bryant Riley

benefit, nothing big for gigantic like -- there's we a X% seem you It's a years a which get just before firms to ago, got to But now, to guys kind used on makes it's the the the not meaningfully, of move so be incremental lot an of But I've bring always XX dream, cleaning would but versus treasuries obviously, that difference, like, it the because balance have didn't needle they sheet. cash EBITDA in. deal.

Sean Haydon

it. Alright. Great I all got. That's Thanks, quarter. Got guys.

Bryant Riley

you the questions. for thank Hi,

Operator

Our without go next question from Azra Hain comes ahead. Thomas [ph]. Please

Unidentified Analyst

Thanks I a questions. me. for moment taking Good two for had afternoon.

on and on is The item. adjustments loans fair value the first income one and trading line

more when of I'm versus much from to think million I or and revenues nature not bit give principle might bit of little and it, of is us transactions last XXX little regular quarters, client be a set say of item stable the more, phenomenal tell into us commissions, opportunities how about of the I can that in transaction million So regular, been sort it less overstating line driven it's, clients, goes a revenues. of what a sort you seven XXX it's

Bryant Riley

maybe in like I questions feel So, there's there. two

let We, philosophy the previous just believe principal works. in we about calls. and about the this we that investment, around talked that that, platform, talk our So me and how

side the XXXX people or do we companies. have our employees, XXX XXXX in appraisals advisory last we have, We over have, on we round,

broker going relationships, the all usually, transaction see usually, have proprietary we require We are speed. opportunities, to that dealer

opportunities, ago, so helped how I from benefited know helped X have relationships out like don't eight acquisitions. make, and the that work. companies those having advantage when with three put taken owned them years build insider was an shares same Liberty of we time, those he group also XX Tax, or At from capital where selling to of with, franchise something. many acquisitions bought million to some And own we we backstops business our money We've our

can companies then skill around were that of these the they So take come advantage enhance we as and opportunities different that we help and have, utilizing think sets of in. all we

so do. our we as let's that's go mandate, not view what And we do buy some like, not IBM,

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to want want stock, worked we want we and partner of for want we're then take be to So other We as services a the be owning that we to provider with case to that of their group or we with, helpful able of to we've by franchise of advantage companies fact in think help. the a take we some them them.

that's that's, the we the nature investing that So principle of do.

Unidentified Analyst

of thank then for you just, it folks could question And you sort talk of relative are the a pipelines be pipelines hunt history the you seems investments to that. is things on always just Could investment. Okay. there? brand or interesting looking second if you about for you there My out principal the like talk look about of sort lot on is that going within you at might segment

Bryant Riley

And been United assets pipe, willing a far down we've we've buying think for a been kind aren't I Online, private or, when buy say Yes, back because or let's magicJack. up as that I go transactions. to company active, dial so of as the equity so that, internet

and a brought investment willing ago to see And to who just of those think flow, advantage little from great often Anchorage, Dan proprietary group built bit we we we've a years opportunities. brought principal Shribman, three we're has out in in and team So go because take quicker. differently our move

we've sure we're flow integrating the we're, that is see that make So we significant. to And got them right.

ultimately no opportunities into investment I principal our up bigger for initial an lack fund. be to might would investment. them there is look a of at of ends that for say us some But And

Unidentified Analyst

Great. me. it That was you. Thank for

Bryant Riley

Alright. Thank interest. you your for

Operator

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

Bryant Riley

everybody. market might people this saying for we find for opportunities. Well been by time where that close great I would find where great. market more you with this change. we is And is is where gain always Thank best be dislocation, this diversified will or share. often looking guess, this the us. we the And platform I a And has recent

So be pain while a underwriting bit might short your and a investments or take our little slower. principal you of term might little

we've really been If our is big to you difference go back in make able time, in where this a business.

a we your obviously, quarter. we B. everybody was next in Riley of look appreciate partners talk the And And support. to at of very you grow much. plan. on our and helped year. so So that's, that's we it us And all make to Thank to all that's appreciate one, terrific forward the the

Operator

you. Thank

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

now may disconnect. You

B. Riley Financial (RILY) 24 Feb 222021 Q4 Earnings call transcript