B Riley Reports Earnings

B Riley has reported earnings and they continue to do quite well with earnings per share at 31 cents/share compared to 17 cents/share in the year ago quarter.

Revenues were $142 million compared to $96 million a year ago. Interest expense was up by more than 100% as the company continued to sell baby bonds.

The results can be reviewed here.

We mention B Riley because of the 5 issues of baby bonds they have outstanding with coupons ranging from 6.875% to 7.50%.

7 thoughts on “B Riley Reports Earnings”

  1. Lets find out the coupon rate on the new RILY issue before dismissing the call risk to RILYL.

      1. 2WR…at 6.875 -7.00% coupon rate I’d fully expect RILY to redeem those L-notes. It would reduce their interest cost on that $25M by half a percentage point and at the same time extend the maturity by several years…plus they’d still have plenty of cash left for new acquisitions.

  2. LOS ANGELES, May 02, 2019 (GLOBE NEWSWIRE) — B. Riley Financial, Inc. (NASDAQ: RILY) (the Company) today announced it has commenced an underwritten registered public offering of $50 million aggregate principal amount of senior notes due 2024, subject to market and certain other conditions. The Company expects to grant the underwriters a 30-day option to purchase additional senior notes in connection with the offering solely to cover overallotments. The Company and this issuance of notes both received an investment grade rating of “BBB+” from Egan-Jones Ratings Company, an independent, unaffiliated rating agency.
    The Company expects to use the net proceeds of this offering for general corporate purposes.

    1. Though the BBB+ Egan-Jones rating is mentioned in the press release I don’t see it mentioned in the prospectus on a quick look. That would be a downgrade from its RILYH issue of last May and no likelihood of using proceeds to refund any of the other issues. including RILYL 7.50 due ’21 that are callable at par. Not particularly happy with RILY piling on unsecured debt yet paying special div……..

      1. 2whiteroses, remember these are all senior notes” and the company cannot suspend payments with out filing for BK. Riley is just creating a borrowing debt ladder and leveraging these bonds to buy other companies to create larger cash flow. The RILYL you mentioned is small at $24.8 million maturing 10/31/21 and currently callable, the RILYH is much larger at $87.7 million and not callable until 5/31/20 maturing 5/31/23.
        Also, I wouldn’t trust anything Egan says or does regarding “ratings” as they are like someone screaming at the dark side of the 🌚 moon…
        Be Well, Nomad

  3. They also announced an $0.18 special dividend on the common stock which is the equivalent to an additional 1% . Good to see those recent acquisitions are paying off for shareholders.

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