B. Riley Financial, Inc. Stock Price, News & Analysis

B. Riley Financial (NASDAQ: RILY) has announced the pricing of an underwritten public offering of 1,228,735 shares of common stock at $46.00 per share. The Offering will generate approximately $56.5 million in gross proceeds before expenses and discounts. Closing is expected on January 15, 2021. The proceeds are intended for general corporate purposes, including funding future acquisitions and making capital expenditures. Additionally, certain company officers and directors have agreed to purchase 149,670 shares as part of this offering.

B. Riley Financial (NASDAQ: RILY) announced a public offering of 870,000 common shares, with an option for underwriters to purchase additional shares. The offering aims to raise funds for general corporate purposes, including acquisitions and capital expenditures. The shares will be offered under a shelf registration statement effective since February 2020. The preliminary prospectus is available on the SEC's website. Participation interest from company insiders is noted, which may indicate confidence in the offering.

B. Riley Financial (RILY) announced preliminary estimates for Q4 and full year 2020, showcasing strong financial performance. Q4 net income is projected between $162M and $167M, translating to diluted earnings per share of $6.18 to $6.38. For full year 2020, net income is estimated at $196M to $201M, with earnings per share ranging from $7.20 to $7.39. Total adjusted EBITDA for Q4 is expected to be $253M to $260M, while full year adjusted EBITDA ranges from $399M to $407M. The company anticipates cash and investments to be approximately $1.3B by year-end.

B. Riley Financial has announced a definitive agreement to acquire National Holdings Corporation in a cash tender offer priced at $3.25 per share. B. Riley currently holds approximately 45% of National's shares. This merger aims to enhance both companies' investment banking and wealth management services and is expected to close in the first quarter of 2021, pending regulatory approvals. National's assets under management amount to $18.9 billion, while B. Riley's total is over $10 billion. The deal is unanimously approved by both companies' boards.

B. Riley Financial (NASDAQ: RILY) has declared cash dividends for its preferred stock. The 6.875% Series A Cumulative Perpetual Preferred Stock (RILYP) will receive a dividend of $0.42968750 per depositary share, while the 7.375% Series B (RILYL) will receive $0.4609375 per depositary share. These dividends are payable on or about January 31, 2021, to shareholders on record as of January 21, 2021. Each depositary share has a liquidation preference of $25.00.

B. Riley Financial, Inc. (NASDAQ: RILY) released its financial guidance for Q4 and full-year 2020, projecting net income of $109-$112 million for Q4 and $143-$146 million for the full year, indicating over 75% growth from 2019. Adjusted EBITDA for Q4 is forecasted at $175-$180 million while full-year EBITDA is expected to be $321-$326 million, up 55% from the prior year. Recent strategic investments in Lingo Communications and Justice clothing brand are anticipated to drive future cash flow. Investment gains are estimated at $80 million for Q4 and $44 million for FY2020.

B. Riley Financial (NASDAQ: RILY) has acquired a significant interest in the clothing brand Justice through Bluestar Alliance's acquisition of the brand's assets from ascena retail group. Justice, which generated over $1 billion in annual revenue in 2019, is expected to enhance B. Riley's brand licensing investments. The investment aims to leverage Justice's opportunities for global expansion, e-commerce growth, and additional product categories. This acquisition aligns with B. Riley's strategy to generate recurring revenues and expand its portfolio in consumer brands.

B. Riley Financial (NASDAQ: RILY) has launched a new Financial Sponsors Group, aiming to enhance relationships with alternative capital managers such as private equity firms and hedge funds. Dan Kraft and Tim Bottrell have been appointed as Co-Directors, bringing extensive investment banking experience from J.P. Morgan and Goldman Sachs, respectively. Their expertise is expected to drive value for middle-market sponsors, with a strong focus on delivering comprehensive service offerings. This initiative is seen as a significant milestone in the company's growth strategy.

On November 5, 2020, B. Riley Financial (NASDAQ: RILY) announced the launch of B. Riley Operations Management Services, following the acquisition of assets from Anchor Resource Management Consulting. This new division aims to assist middle-market manufacturing firms in improving operational efficiency and generating financial savings. Led by ARM founders Dan Ruskin and Don Weathers, the service enhances B. Riley's restructuring capabilities and aims to identify potential investment opportunities within the manufacturing sector.