Market Overview

B. Riley Financial Reports Financial Results for the Second Quarter of 2018

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Record Results Exceed Q2 Guidance for Net Income and Adjusted EBITDA
Declares Special Dividend of $0.22 Per Share in addition to Regular Quarterly Dividend of $0.08 Per Share

LOS ANGELES, Aug. 02, 2018 (GLOBE NEWSWIRE) -- B. Riley Financial, Inc. (NASDAQ:RILY), a diversified provider of financial and business advisory services, reported results for its second quarter ended June 30, 2018.

Second Quarter 2018 Financial Highlights

  • Total revenues of $125.5 million; net income of $17.0 million or $0.64 per diluted share
  • Adjusted EBITDA of $41.4 million; adjusted net income of $22.8 million or $0.86 per diluted share

"We're pleased to report record results for the second quarter which exceeded our guidance for net income and adjusted EBITDA. We saw strength in each of our businesses driven by meaningful fee engagements in both of our more episodic businesses, bolstered by steady recurring revenue from our appraisal, wealth management and asset management businesses, and cash flow generated by principal investments," said Bryant Riley, Chairman and Co-Chief Executive Officer, B. Riley Financial. "This growth reflects the expanded opportunities our platform offers to create unique opportunities which involve multiple parts of our business. Recent highlights which demonstrate our ability to be effective in this strategy include the purchase of assets of Bon-Ton Stores, our support of the proposed acquisition of Rent-A-Center Inc., and our participation in the Toys ‘R' Us liquidation. As we continue to focus on growth, we're excited about the addition of GlassRatner and the expertise this team offers, as well as future contributions from our pending acquisition of magicJack to our principal investments segment."

Second Quarter 2018 Financial Results
For the three months ended June 30, 2018, total revenues increased to $125.5 million from $66.7 million for the same year-ago period and $95.8 million for the first quarter of 2018. The increase in revenues for the second quarter of 2018 was primarily driven by higher revenues associated with significant fee-based engagements for the company's Capital Markets and Auction and Liquidation segments.

  • Capital Markets Segment: Revenues increased to $77.8 million for the second quarter of 2018 compared to $23.9 million for the same year-ago period and $60.3 million for the first quarter of 2018. Segment income increased to $12.0 million for the second quarter of 2018 compared to a loss of $4.8 million for the same year-ago period and a loss of $0.3 million for the first quarter of 2018. The sequential increase for this segment was primarily driven by an uptick in fee-based engagements for B. Riley FBR. The year-over-year increase was primarily driven by the acquisitions of FBR & Co. and Wunderlich Securities which were completed in June and July of 2017, respectively.
  • Auction and Liquidation Segment: Revenues for the second quarter of 2018 increased to $26.8 million from $21.8 million for the same year-ago period and $15.5 million for the first quarter of 2018. Segment income increased to $16.3 million for the second quarter of 2018 from $7.3 million for the same year-ago period and $8.1 million for the first quarter of 2018. Results for this segment were primarily driven by an increase in revenues related to large retail liquidation engagements conducted during the second quarter of 2018.
  • Valuation and Appraisal Segment: Revenues increased to $9.5 million for the second quarter of 2018 from $8.0 million for the same year-ago period and $8.5 million for the first quarter of 2018. Segment income increased to $2.9 million for the second quarter of 2018 from $2.3 million for the same year-ago period and $1.9 million for the first quarter of 2018.
  • Principal Investments – United Online Segment: Revenues totaled $11.4 million for the second quarter of 2018. Segment income totaled $4.7 million for the second quarter of 2018. Revenues from United Online are primarily driven by services and fees for internet access and related subscription services, and partially by the sale of goods.

Net income for the second quarter of 2018 increased to $17.0 million or $0.64 per diluted share from $3.3 million or $0.15 per diluted share for the same year-ago period and $4.5 million or $0.17 per diluted share for the first quarter of 2018.

Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, restructuring costs, transaction costs, share-based compensation, fair value adjustments and insurance settlement recovery) increased to $41.4 million from $17.6 million for the same year-ago period. (See "Note Regarding Use of Non-GAAP Financial Measures" below for further discussion of this non-GAAP term.)

Adjusted net income (excluding the impact of share-based payments, amortization of intangible assets, restructuring costs, transaction costs, fair value adjustments, insurance settlement recovery, tax impact of aforementioned adjustments, and certain tax items) increased to $22.8 million or $0.86 per diluted share for the second quarter of 2018. This compares to $8.8 million or $0.40 per diluted share for the same year-ago period. (See "Note Regarding Use of Non-GAAP Financial Measures" below for further discussion of this non-GAAP term.)

As of June 30, 2018, the company had $191.3 million in cash and cash equivalents, $0.5 million in restricted cash, $35.2 million due from clearing brokers, $143.0 million in net securities and other investments owned (at fair value), $200.0 million in advances against customer contracts, and $491.1 million in total debt. Total B. Riley Financial stockholders' equity was $263.4 million. Shares outstanding as of June 30, 2018 were approximately 26.1 million.

Declaration of Dividend
B. Riley Financial's board of directors approved a regular quarterly dividend of $0.08 per share and a special dividend of $0.22 per share which will be paid on or about August 31, 2018 to stockholders of record as of August 16, 2018.

Update on magicJack Acquisition
The company's previously announced acquisition of magicJack VocalTec Ltd. remains pending final regulatory approval. The company will communicate additional updates once closing conditions have been satisfied.

Conference Call
The company will host a conference call today, Thursday, August 2, 2018 at 4:30 p.m. ET (1:30 p.m. PT). Bryant Riley, Chairman and co-CEO; Tom Kelleher, co-CEO; and Phillip Ahn, CFO and COO, will host the conference call followed by a question and answer period.

B. Riley Financial, Inc. Second Quarter 2018 Earnings Call
Toll-Free:  1-855-327-6838
International: 1-604-235-2082

A replay of the call will be available after 7:30 p.m. ET on the same day through August 9, 2018.

Replay Dial-In Numbers
Toll-Free:  1-844-512-2921
International: 1-412-317-6671
Replay pin: 10005262

The conference call will be broadcast simultaneously and available for replay via the investor section of the company's website. For more information, visit ir.brileyfin.com.

About B. Riley Financial, Inc. (NASDAQ:RILY)
B. Riley Financial provides collaborative financial services and solutions tailored to fit the capital raising and financial advisory needs of public and private companies and high net worth individuals. The company operates through several wholly-owned subsidiaries, including B. Riley FBR, a full-service investment bank and institutional brokerage; Great American Group, a leading provider of asset disposition, appraisal, corporate advisory and valuation services; GlassRatner, a specialty financial advisory services and consulting firm; B. Riley Wealth Management, B. Riley Asset Management and B. Riley Alternatives, which offer investment management to institutional and high net worth investors; Great American Capital Partners, which originates and underwrites senior secured loans for asset-rich companies; and B. Riley Principal Investments, which invests in or acquires companies and assets with attractive return profiles.

Forward-Looking Statements
Statements in this press release that are not descriptions of historical facts are forward‐looking statements that are based on management's current expectations and assumptions and are subject to risks and uncertainties. If such risks or uncertainties materialize or such assumptions prove incorrect, our business, operating results, financial condition and stock price could be materially negatively affected. In some cases, you can identify forward-looking statements by terminology including "anticipates," "believes," "can," "continue," "could," "estimates," "expects," "intends," "may," "plans," "potential," "predicts," "should," "will," "would" or the negative of these terms or other comparable terminology. You should not place undue reliance on such forward‐looking statements, which are based on the information currently available to us and speak only as of the date of this press release. Such forward looking statements include, but are not limited to, the anticipated benefits of the acquisition of GlassRatner,  the effects of our business model, the effects and anticipated benefits of our completed and pending acquisitions and related actions, expectations regarding future transactions and the financial impact, size and consistency of returns and timing thereof, expectations regarding market dynamics, as well as statements regarding the effect of investments in our business segments. Because these forward-looking statements involve known and unknown risks and uncertainties, there are important factors that could cause actual results, events or developments to differ materially from those expressed or implied by these forward-looking statements. Risk factors that could cause actual results to differ from those contained in the forward-looking statements include but are not limited to risks related to: volatility in our revenues and results of operations; changing conditions in the financial markets; our ability to generate sufficient revenues to achieve and maintain profitability; the short term nature of our engagements; the accuracy of our estimates and valuations of inventory or assets in "guarantee" based engagements; competition in the asset management business; potential losses related to our auction or liquidation engagements; our dependence on communications, information and other systems and third parties; potential losses related to purchase transactions in our auctions and liquidations business; the potential loss of financial institution clients; potential losses from or illiquidity of our proprietary investments; changing economic and market conditions; potential liability and harm to our reputation if we were to provide an inaccurate appraisal or valuation; potential mark-downs in inventory in connection with purchase transactions; failure to successfully compete in any of our segments; loss of key personnel; our ability to borrow under our credit facilities as necessary; failure to comply with the terms of our credit agreements; our ability to meet future capital requirements; our ability to realize the benefits of our completed and proposed acquisitions, including our ability to achieve anticipated opportunities and operating cost savings, and accretion to reported earnings estimated to result from completed and proposed acquisitions in the time frame expected by management or at all; our ability to promptly and effectively integrate our business with that of GlassRatner; the effect of the GlassRatner acquisition on our and GlassRatner's customers, employees and counterparties;  the possibility that our proposed acquisition of magicJack VocalTec Ltd. ("magicJack" or "MJ") does not close when expected or at all; our ability to promptly and effectively integrate our business with that of magicJack if such transaction closes; the reaction to the magicJack acquisition or our and magicJack's customers, employees and counterparties; the diversion of management time on acquisition-related issues; and those risks described from time to time in B. Riley Financial, Inc.'s filings with the SEC, including, without limitation, the risks described in B. Riley Financial, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2017 under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations." Additional information is also set forth in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2018. These factors should be considered carefully, and readers are cautioned not to place undue reliance on such forward-looking statements. All information is current as of the date this press release is issued, and B. Riley Financial, Inc. undertakes no duty to update this information.

Note Regarding Use of Non-GAAP Financial Measures
Certain of the information set forth herein, including adjusted net income and 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 cash flow, excluding net interest expense, provisions for or benefit from income taxes, depreciation, amortization, transaction expenses, restructuring costs, stock-based compensation, fair value adjustments and insurance settlement recovery 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. The non-GAAP measures are described above and are reconciled to the corresponding GAAP measure in the unaudited condensed consolidated financial statements portion of this release under the headings "Adjusted Net Income Reconciliation" and "Adjusted EBITDA Reconciliation."

Investor Contact
Investor Relations
ir@brileyfin.com
(310) 966-1444

Media Contact
Jo Anne McCusker
jmccusker@brileyfin.com
(646) 885-5425

                           
B. RILEY FINANCIAL, INC. AND SUBSIDIARIES    
Condensed Consolidated Balance Sheets    
(Dollars in thousands, except par value)    
                           
                June 30,   December 31,  
                2018   2017  
                (Unaudited)        
Assets              
Assets                      
  Cash and cash equivalents   $ 191,274     $ 132,823    
  Restricted cash     467       19,711    
  Due from clearing brokers     35,242       31,479    
  Securities and other investments owned, at fair value     160,540       145,360    
  Securities borrowed     1,013,988       807,089    
  Accounts receivable, net     33,111       20,015    
  Due from related parties     8,042       5,689    
  Advances against customer contracts     200,036       5,208    
  Prepaid expenses and other assets     42,203       22,605    
  Property and equipment, net     11,195       11,977    
  Goodwill         99,246       98,771    
  Other intangible assets, net     52,603       56,948    
  Deferred income taxes     29,222       29,229    
    Total assets   $ 1,877,169     $ 1,386,904    
Liabilities and Equity              
Liabilities                    
  Accounts payable   $ 3,790     $ 2,650    
  Accrued expenses and other liabilities     72,986       71,685    
  Deferred revenue     3,600       3,141    
  Due to partners     7,398       1,578    
  Securities sold not yet purchased     17,583       28,291    
  Securities loaned     1,012,240       803,371    
  Mandatorily redeemable noncontrolling interests     4,238       4,478    
  Asset based credit facility     105,004          
  Notes payable     52,286       2,243    
  Senior notes payable     333,768       203,621    
    Total liabilities     1,612,893       1,121,058    
                           
Commitments and contingencies              
B. Riley Financial, Inc. stockholders' equity:              
  Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued              
  Common stock, $0.0001 par value; 40,000,000 shares authorized; 26,070,165     2       2    
    and 26,569,462 issued and outstanding as of June 30, 2018 and              
    December 31, 2017, respectively              
  Additional paid-in capital     244,631       259,980    
  Retained earnings     20,408       6,582    
  Accumulated other comprehensive loss     (1,619 )     (534 )  
    Total B. Riley Financial, Inc. stockholders' equity     263,422       266,030    
Noncontrolling interests     854       (184 )  
    Total equity     264,276       265,846    
      Total liabilities and equity   $ 1,877,169     $ 1,386,904    
                           


B. RILEY FINANCIAL, INC. AND SUBSIDIARIES  
Condensed Consolidated Statements of Income  
(Unaudited)  
(Dollars in thousands, except share data)  
                                       
                Three Months Ended   Six Months Ended  
                June 30,   June 30,  
                2018   2017   2018   2017  
Revenues:                            
  Services and fees   $ 118,882     $ 64,395     $ 207,331     $ 117,213    
  Interest income - Securities lending     6,591       2,218       13,882       2,218    
  Sale of goods     28       63       66       142    
    Total revenues     125,501       66,676       221,279       119,573    
Operating expenses:                          
  Direct cost of services     13,925       18,485       25,577       36,086    
  Cost of goods sold     49       130       90       189    
  Selling, general and administrative expenses     76,723       37,722       144,821       61,874    
  Restructuring charge     1,602       6,214       1,819       6,588    
  Interest expense - Securities lending     4,724       1,565       9,892       1,565    
    Total operating expenses     97,023       64,116       182,199       106,302    
      Operating income     28,478       2,560       39,080       13,271    
Other income (expense):                          
  Interest income     166       150       294       282    
  Income from equity investment     4,893             4,221          
  Interest expense     (10,359 )     (1,894 )     (14,586 )     (2,685 )  
    Income before income taxes     23,178       816       29,009       10,868    
(Provision for) benefit from income taxes     (5,377 )     2,547       (6,366 )     6,396    
    Net income     17,801       3,363       22,643       17,264    
Net income (loss) attributable to noncontrolling interests     804       83       1,143       (37 )  
    Net income attributable to B. Riley Financial, Inc.   $ 16,997     $ 3,280     $ 21,500     $ 17,301    
                                       
Basic income per share   $ 0.67     $ 0.15     $ 0.83     $ 0.85    
Diluted income per share   $ 0.64     $ 0.15     $ 0.80     $ 0.82    
                                       
Cash dividends per share   $ 0.12     $ 0.16     $ 0.28     $ 0.42    
                                       
Weighted average basic shares outstanding     25,424,178       21,216,829       25,799,077       20,311,231    
Weighted average diluted shares outstanding     26,397,513       22,119,055       26,785,169       20,984,757    
                                       


B. RILEY FINANCIAL, INC. AND SUBSIDIARIES  
Condensed Consolidated Statements of Cash Flows  
(Unaudited)  
(Dollars in thousands)  
                  Six Months Ended  
                  June 30,  
                  2018   2017  
Cash flows from operating activities:                    
  Net income       $ 22,643     $ 17,264    
  Adjustments to reconcile net income to net cash used in operating activities:                  
    Depreciation and amortization         6,670       4,290    
    Provision for doubtful accounts         648       704    
    Share-based compensation         5,559       3,940    
    Recovery of key man life insurance               (6,000 )  
    Non-cash interest and other         1,870       166    
    Effect of foreign currency on operations         (582 )     (855 )  
    Income from equity investment         (4,221 )        
    Deferred income taxes         7       (23,636 )  
    Impairment of leaseholds, lease loss accrual and loss on disposal of fixed assets         1,403       1,371    
    Income allocated and fair value adjustment for mandatorily redeemable noncontrolling interests         543       7,268    
    Change in operating assets and liabilities:                  
      Due from clearing brokers         (3,763 )     13,408    
      Securities and other investments owned         (15,180 )     (40,975 )  
      Securities borrowed         (206,899 )     (48,134 )  
      Accounts receivable and advances against customer contracts         (208,658 )     (37,153 )  
      Prepaid expenses and other assets         (16,108 )     14,988    
      Accounts payable, accrued payroll and related expenses, accrued value                  
        added tax payable and other accrued expenses         5,320       (22,748 )  
      Amounts due to/from related parties and partners         3,362       (13,333 )  
      Securities sold, not yet purchased         (10,708 )     2,675    
      Deferred revenue         459       (425 )  
      Securities loaned         208,869       44,365    
        Net cash used in operating activities         (208,766 )     (82,820 )  
Cash flows from investing activities:                  
  Cash acquired from acquisition of FBR & Co.               15,738    
  Acquisition of other businesses               (2,052 )  
  Acquisition consideration payable               (10,381 )  
  Purchases of property and equipment and intangible assets         (1,836 )     (306 )  
  Proceeds from key man life insurance               6,000    
  Proceeds from sale of property and equipment and intangible assets         37       619    
  Equity investments         (3,575 )        
  Dividends from equity investment         1,695          
        Net cash (used in) provided by investing activities         (3,679 )     9,618    
Cash flows from financing activities:                  
  Proceeds from asset based credit facility         300,000       65,987    
  Repayment of asset based credit facility         (194,460 )     (45,750 )  
  Payment of contingent consideration               (1,250 )  
  Proceeds from notes payable         51,020          
  Repayment of notes payable         (357 )        
  Proceeds from issuance of senior notes         132,123       60,375    
  Payment of debt issuance costs         (4,936 )     (2,528 )  
  Payment of employment taxes on vesting of restricted stock         (3,570 )     (1,057 )  
  Dividends paid         (9,549 )     (8,380 )  
  Repurchase of common stock         (17,338 )        
  Distribution to noncontrolling interests         (782 )     (1,646 )  
        Net cash provided by financing activities         252,151       65,751    
        Increase (decrease) in cash, cash equivalents and restricted cash         39,706       (7,451 )  
        Effect of foreign currency on cash, cash equivalents and restricted cash         (499 )     2,354    
        Net increase (decrease) in cash, cash equivalents and restricted cash         39,207       (5,097 )  
Cash, cash equivalents and restricted cash, beginning of  year         152,534       115,399    
Cash, cash equivalents and restricted cash, end of period       $ 191,741     $ 110,302    
                             
Supplemental disclosures:                  
  Interest paid       $ 21,868     $ 2,890    
  Taxes paid         $ 2,306     $ 9,689    
                             


                                     
B. RILEY FINANCIAL, INC. AND SUBSIDIARIES    
Segment Financial Information    
(Unaudited)    
(Dollars in thousands)    
                                     
            Three Months Ended   Six Months Ended    
            June 30,   June 30,    
            2018   2017   2018   2017    
Capital Markets reportable segment:                          
  Revenues - Services and fees $ 71,194     $ 21,676     $ 124,232     $ 39,399      
  Interest income - Securities lending   6,591       2,218       13,882       2,218      
    Total revenues     77,785       23,894       138,114       41,617      
  Selling, general, and administrative expenses   (57,713 )     (22,829 )     (111,352 )     (33,798 )    
  Restructuring charge     (1,774 )     (3,923 )     (2,029 )     (3,923 )    
  Interest expense - Securities lending   (4,724 )     (1,565 )     (9,892 )     (1,565 )    
  Depreciation and amortization   (1,555 )     (404 )     (3,119 )     (531 )    
    Segment income (loss)     12,019       (4,827 )     11,722       1,800      
Auction and Liquidation reportable segment:                          
  Revenues - Services and fees   26,836       21,807       42,353       35,803      
  Direct cost of services     (6,849 )     (11,763 )     (11,425 )     (22,097 )    
  Cost of goods sold     (16 )           (17 )          
  Selling, general, and administrative expenses   (3,617 )     (2,749 )     (6,498 )     (4,599 )    
  Depreciation and amortization   (8 )     (5 )     (16 )     (10 )    
    Segment income     16,346       7,290       24,397       9,097      
Valuation and Appraisal reportable segment:                          
  Revenues - Services and fees   9,459       7,960       17,979       15,756      
  Direct cost of services     (4,123 )     (3,581 )     (8,321 )     (7,253 )    
  Selling, general, and administrative expenses   (2,414 )     (2,062 )     (4,759 )     (4,142 )    
  Depreciation and amortization   (54 )     (43 )     (103 )     (87 )    
    Segment income     2,868       2,274       4,796       4,274      
Principal Investments - United Online segment:                          
  Revenues - Services and fees   11,393       12,952       22,767       26,255      
  Revenues - Sale of goods     28       63       66       142      
    Total revenues     11,421       13,015       22,833       26,397      
  Direct cost of services     (2,953 )     (3,141 )     (5,831 )     (6,736 )    
  Cost of goods sold     (33 )     (130 )     (73 )     (189 )    
  Selling, general, and administrative expenses   (2,015 )     (2,791 )     (3,973 )     (6,103 )    
  Depreciation and amortization   (1,679 )     (1,770 )     (3,358 )     (3,610 )    
  Restructuring charge           (109 )           (483 )    
    Segment income     4,741       5,074       9,598       9,276      
Consolidated operating income from reportable segments   35,974       9,811       50,513       24,447      
                                     
Corporate and other expenses (including restructuring   (7,496 )     (7,251 )     (11,433 )     (11,176 )    
  recovery of $172 and $210 during the three and six months                          
  ended June 30, 2018, respectively, and restructuring charge                          
  of $2,182 during the three and six months ended June 30, 2017                          
Interest income       166       150       294       282      
Income on equity investments   4,893             4,221            
Interest expense       (10,359 )     (1,894 )     (14,586 )     (2,685 )    
  Income before income taxes     23,178       816       29,009       10,868      
(Provision for) benefit from income taxes   (5,377 )     2,547       (6,366 )     6,396      
  Net income       17,801       3,363       22,643       17,264      
Net income (loss) attributable to noncontrolling interests   804       83       1,143       (37 )    
  Net income attributable to B. Riley Financial, Inc. $ 16,997     $ 3,280     $ 21,500     $ 17,301      
                                     
                                     
                                     
                                     
                                     


  B. RILEY FINANCIAL, INC. AND SUBSIDIARIES
  Adjusted EBITDA Reconciliation
  (Unaudited)
  (Dollars in thousands)
                                     
                Three Months Ended   Six Months Ended
                June 30,   June 30,
                2018   2017   2018   2017
  Net income attributable to B. Riley Financial, Inc. $ 16,997     $ 3,280     $ 21,500     $ 17,301  
                                     
  Adjustments:                          
    Provision for (benefit from) income taxes   5,377       (2,547 )     6,366       (6,396 )
    Interest expense   10,359       1,894       14,586       2,685  
    Interest income   (166 )     (150 )     (294 )     (282 )
    Share based payments   2,678       1,608       5,236       2,515  
    Depreciation and amortization   3,333       2,248       6,670       4,290  
    Restructuring costs   1,602       6,214       1,819       6,588  
    Transactions related costs   1,191       4,789       1,545       5,675  
    Fair value adjustment         6,250             6,250  
    Insurance settlement recovery         (6,000 )           (6,000 )
                                     
      Total EBITDA adjustments   24,374       14,306       35,928       15,325  
                                     
        Adjusted EBITDA $ 41,371     $ 17,586     $ 57,428     $ 32,626  
                                     


  B. RILEY FINANCIAL, INC. AND SUBSIDIARIES  
  Adjusted Net Income Reconciliation  
  (Unaudited)  
  (Dollars in thousands, except share data)  
                                         
                  Three Months Ended   Six Months Ended  
                  June 30,   June 30,  
                  2018   2017   2018   2017  
  Net income attributable to B. Riley Financial, Inc. $   16,997     $ 3,280     $ 21,500     $ 17,301    
  Adjustments:                              
    Share based payments     2,678       1,608       5,236       2,515    
    Amortization of intangible assets     2,146       1,554       4,306       3,076    
    Restructuring costs     1,602       6,214       1,819       6,588    
    Transactions related costs     1,191       4,789       1,545       5,675    
    Fair value adjustment           6,250             6,250    
    Insurance settlement recovery           (6,000 )           (6,000 )  
    Income tax effect of adjusting entries     (1,831 )     (8,857 )     (2,783 )     (10,503 )  
    Tax benefit from tax election to treat acquisition of UOL                       (8,389 )  
      as a taxable business combination                          
  Adjusted net income attributable to B. Riley Financial, Inc. $   22,783     $ 8,838     $ 31,623     $ 16,513    
                                         
  Adjusted income per common share:                          
    Adjusted basic income per share $   0.90     $ 0.42     $ 1.23     $ 0.81    
    Adjusted diluted income per share $   0.86     $ 0.40     $ 1.18     $ 0.79    
                                         
  Shares used to calculate adjusted basic net income per share     25,424,178       21,216,829       25,799,077       20,311,231    
  Shares used to calculate adjusted diluted net income per share     26,397,513       22,119,055       26,785,169       20,984,757    
                                         

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