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

B. Riley Financial (NASDAQ: RILY) has announced strategic initiatives to enhance shareholder value by accelerating debt repayment. The company is negotiating the sale of a 53% stake in Great American Group at a $380 million enterprise value and financing its Brands portfolio for $236 million. These transactions are expected to generate approximately $410 million in gross cash proceeds. B. Riley intends to use the majority of proceeds to reduce its Nomura Senior Secured Debt to about $125 million by the end of 2024 and plans to repay all 2025 maturities. The company anticipates announcing an amended credit agreement soon and is evaluating a take-private proposal from Chairman Bryant Riley at $7.00 per share.

B. Riley Financial (Nasdaq: RILY) received a delinquency notification from Nasdaq on August 21, 2024, due to the delayed filing of its Q2 2024 10-Q report. This non-compliance with Nasdaq Listing Rule 5250(c)(1) doesn't immediately affect the company's listing status. RILY has 60 days to submit a compliance plan to Nasdaq, which may grant up to 180 days (until February 10, 2025) to regain compliance.

The company released preliminary Q2 2024 financial results on August 12 and is working to file the Quarterly Report promptly. This situation highlights potential risks for investors, including possible regulatory issues and financial reporting delays.

B. Riley Financial (Nasdaq: RILY) has received an unsolicited proposal from its founder, chairman, and co-CEO, Bryant Riley, to take the company private. The offer proposes to acquire outstanding shares not owned by Riley at $7.00 per share. The transaction would be financed with debt and possibly third-party equity, subject to 'majority of the minority' stockholder approval and other conditions, but not a financing condition.

The company's Board of Directors plans to establish a Special Committee of independent directors to evaluate the proposal. However, the Board cautions that it has not yet had the opportunity to thoroughly review the offer, and there is no assurance that a definitive agreement will be reached or that any transaction will be approved or completed.

B. Riley Financial (NASDAQ: RILY) released preliminary Q2 2024 financial results, reporting an expected net loss of $435-$475 million ($14-$15 per diluted share). The loss is primarily due to a non-cash markdown of $330-$370 million related to its investment in Freedom VCM (FRG's parent) and Vintage Capital loan receivable. Additional charges include a $28 million impairment for Targus goodwill and a $25 million valuation allowance for deferred income taxes.

The company expects operating adjusted EBITDA of $50-$55 million. As of June 30, 2024, B. Riley had $237 million in cash and cash equivalents, $1.1 billion in total cash and investments, and $2.16 billion in total outstanding debt. The company will suspend its common dividend to prioritize deleveraging and is reviewing strategic alternatives for Great American Group.

Store closing sales have begun at Conn's HomePlus and Badcock Home Furniture & More locations, offering 30-50% discounts on all merchandise. The liquidation event, managed by B. Riley Retail Solutions, , covers over 550 stores across 15 states and online platforms. The sale includes furniture, home electronics, appliances, and more from leading brands. Store furnishings, fixtures, and equipment are also available for purchase. The event aims to clear all inventory, with no returns or exchanges permitted. Customers are encouraged to shop early for the best selection. B. Riley Retail Solutions, a subsidiary of B. Riley Financial (Nasdaq: RILY), specializes in large-scale retail liquidations.

B. Riley Securities, a subsidiary of B. Riley Financial (Nasdaq: RILY), has announced its 7th Annual Consumer and TMT Conference, scheduled for September 12, 2024 in New York. This one-day event will showcase select small and mid-cap public companies across various sectors including consumer, technology, media, and telecom.

The conference will feature a comprehensive schedule of research-moderated panels, analyst-hosted roundtables, one-on-ones, and small group meetings. It aims to provide deep insights into the opportunities created by the evolving consumer and TMT market. Participation is by invitation only, and interested parties can register by emailing 1on1@brileyfin.com.

Andy Moore, CEO of B. Riley Securities, emphasized the event's role in offering a rich networking forum for investors and corporates. The conference covers a wide range of industries, from Aerospace & Defense to Specialty Retail & Apparel.

B. Riley Financial (NASDAQ: RILY) has declared cash dividends on its 6.875% Series A and 7.375% Series B Cumulative Perpetual Preferred Stocks. Each depositary share represents a 1/1000th fractional interest in a share of the respective Preferred Stock with a liquidation preference of $25.00 per depositary share.

The 6.875% Series A Preferred Stock dividend is $0.42968750 per depositary share. The 7.375% Series B Preferred Stock dividend is $0.4609375 per depositary share. Both dividends will be payable on July 31, 2024, to shareholders of record on July 22, 2024.

B. Riley Financial (NASDAQ: RILY) announced the acquisition of Interface Consulting International, a prominent engineering and construction consulting firm. Interface Consulting specializes in troubled projects, offering analysis, litigation support, and project planning. They serve a wide range of clients globally, including owners, contractors, attorneys, and insurers. This acquisition integrates Interface Consulting's expert team into B. Riley's Advisory Services, enhancing their forensic accounting and litigation support. Key leaders, Chris Sullivan and Lisa Sumner Heard, bring decades of experience in managing high-profile projects in engineering and construction, contributing strategic solutions and expertise to B. Riley's professional services platform.

B. Riley Financial (NASDAQ: RILY) reported a net loss of $51 million for Q1 2024, compared to a $15 million profit in Q1 2023. This was primarily due to $30 million in non-cash investment losses. Total revenues dropped 20.6% to $343 million, down from $432 million the previous year. Despite the declines, operating revenues only saw a slight dip to $379 million from $389 million. Operating adjusted EBITDA decreased to $66 million from $88 million. The company retired $115 million of 6.75% 2024 Senior Notes and repaid $57 million of debt. B. Riley declared a quarterly dividend of $0.50 per share.