B. Riley Financial, Inc. 5.25% Senior Notes due 2028 Q4 FY2024 earnings call

• Established joint venture with Oaktree for Great American Group, contributing certain businesses and receiving cash and ownership interest.
• Received ~$236M gross proceeds from financing brand assets.
• Signed agreement to sell part of W-2 Wealth Management to Stifel, expect transaction to close early Q2 2025 with ~$26M cash consideration (subject to change).
• Completed full redemption of February 2025 senior notes.
• Announced new $160M senior secured credit facility with Oaktree.
• Sold Atlantic Coast Recycling for ~$70M in cash proceeds, expecting ~$30M gain in Q1.
• Focus on core businesses: B. Riley Securities, B. Riley Wealth, and advisory services (GlassRatner).
• Bryant Riley communicated to Board he no longer proposes to take B. Riley Financial private, citing potential in business and debt structure complications.

B. Riley Securities: Uniquely positioned as top middle market provider with ~180 employees, ended December strong. B. Riley Wealth: Post-Stifel transaction, retains ~170 independent advisers and 81 W-2 advisers with ~$15 billion in client assets. Advisory services (GlassRatner): Performed well in 2024, consistent growth in specialized industry. Great American Group: Joint venture with Oaktree, received ~$203M cash and 44% ownership, participated in JOANN liquidation. Telecom segment: Provides steady cash flow and EBITDA. Revenue contribution details not explicitly given in terms of percentages, but each segment is highlighted as part of the core business.

• Preliminary Q4 results: Net income available to common shareholders $48M-$68M (includes ~$236M-$247M from discontinued ops). Diluted net income per share $1.57-$2.22. Net loss from continuing operations $178M-$187M. Operating adjusted EBITDA $12M-$14M.
• As of Dec 31, 2024: Cash, cash equivalents, restricted cash ~$257M; total debt $1.78B; total debt net of cash and investments ~$991M (down $221M from Q3).
• Deadline for filing 10-K is March 17, 2025; if unable, will file Form 12b-25 for 15-day extension.

• Risks described in periodic filings with SEC, including factors that could cause actual results to differ from forward-looking statements, such as risks related to business operations, debt maturities, and market conditions.

Q: Can you give us a sense of what you intend to accomplish in the next six months to beef up liquidity and the balance sheet?

A: Focus is on investing in core businesses (BRS, Wealth, Advisory) and being opportunistic with asset monetization, with key focus on growing the business.

Q: Can you talk a little bit about your core business on a run rate basis or EBITDA/FCF positive for next quarter or full year 2025?

A: Core operating portfolio has potential, with BRS, Wealth, and Advisory having historical EBITDA, but specific numbers not provided, emphasizing focus on growing core businesses.

Q: You have an asset-rich balance sheet. Can you talk about the value of businesses like GlassRatner and telecom?

A: Focus is on investing in and growing operating businesses, not speculating on multiples, but core businesses are profitable and have a strong base.

Q: Do you guys have the ability to buy back debt under the new credit agreement?

A: No, the senior facility does not allow buying bonds in the open market.

Q: What does the wealth management business look like now?

A: After transactions, remaining wealth management group has ~$15 billion in assets under management, down from ~$24 billion before sales and attrition.

Q: Is most further asset monetization coming from the Principal Investment Group?

A: Focus on monetizing non-core assets selectively and thoughtfully, with focus on growing core businesses and managing debt maturities.