Diversified financial firm B Riley Financial (NASDAQ:RILY), which has 5 baby bond issues outstanding, has released earnings for the 4th quarter and year ending 12/31/2018.
At 1st glance the financials look decent – not stellar, because honestly the company is in so many different businesses now that it is likely that they will do ok, but this is no investment grade company and certainly it wouldn’t surprise us if the train falls off the rails at some point in the next year. They are in capital markets, auction and liquidation, valuation and appraisal and what they call principal investments (such as ownership of magicJack)
Capital markets are the largest segment of the company and revenues fell by a full 30% in the 4th quarter from the same quarter last year.
The company took a restructuring charge in the 4th quarter of $6.3 million which lead to a 4th quarter loss of $8.3 million for the quarter. For the full year net income was $15.5 million against $11.6 million the year before.
B Riley does hold almost $180 million in cash which should serve to buffer any operating issues in the next few quarters.