LOS ANGELES, Oct. 28, 2021 /PRNewswire/ -- B. Riley Financial, Inc. (NASDAQ:RILY), a diversified financial services company, today announced results for the three- and nine-month period ended September 30, 2021.

Third Quarter 2021 Highlights

Net income of $48.6 million, up 3% year-over-year
Total revenues of $381.5 million, up 69% year-over-year
Total adjusted EBITDA⁽¹⁾ of $114.1 million, up 21% year-over-year
Operating revenues⁽²⁾ of $363.3 million, up 87% year-over-year
Operating adjusted EBITDA⁽³⁾ of $101.1 million, up 50% year-over-year

Bryant Riley, Chairman and Co-Chief Executive Officer of B. Riley Financial, said: "We have never been more confident in the power of our combined platform and the opportunities we see ahead. In line with our stated commitment to return capital to our shareholders, we have increased our regular quarterly dividend to $1.00 and declared a special dividend of $3.00 for a total third quarter dividend of $4.00 per common share. Upon payment of our third quarter dividend, we will have returned a total of $9.00 per share, or approximately $247 million, in common stock dividends to shareholders for the first three quarters. The increase in our regular dividend reflects our increasing confidence in our recurring cash flows, as well as the continued growth in our episodic businesses. Our balance sheet continues to be very strong, and our capital base has continued to increase, reflecting the growing cash flows and strong fundamentals of our business. We acknowledge that our diversified business can be difficult to analyze and believe a recurring dividend is an important measure for our shareholders. Our goal is to continue to utilize our cash flows to enhance our business, make accretive acquisitions, and return capital to our shareholders. Over the last year, we have made meaningful progress in reducing our debt expense by redeeming two of our higher rate corporate bonds and issuing debt at a rate that is over 200 basis points lower. We will continue to seek opportunities to improve our capital structure in the coming quarters."

Tom Kelleher, Co-Chief Executive Officer of B. Riley Financial, added: "Over the last year, B. Riley Securities has established itself as a preferred investment banking partner for small- and mid-cap companies. Our investment banking division drove our strong quarterly performance, supported by contributions from our newly expanded wealth management division, cash flow generated by our principal investment companies, and growth in our brands. The momentum of our combined platform continues to benefit each of our distinct businesses. Our strengthened execution capabilities have enabled us to uncover additional new business opportunities while attracting talented professionals to our platform. During the quarter, we acquired 272 Capital in line with our stated intent to build out asset management and named a senior professional to lead the expansion of our fixed income division. We also added several quality financial advisors to our roster as we work to combine our legacy wealth management business with National Holdings. We are continuing to recruit across our business lines and believe our ability to attract talent of this caliber speaks to the value of our diversified platform."

Declaration of Common Dividend

B. Riley has declared a total quarterly cash dividend of $4.00 per common share which is payable on or about November 23, 2021 to common stockholders of record as of November 9, 2021. The total dividend payment reflects an increased regular quarterly dividend of $1.00 from the previous regular quarterly dividend of $0.50, in addition to a $3.00 special one-time dividend.

Bond Redemption and Share Repurchases

In September, the Company redeemed its 7.375% Senior Notes due 2023 in full for an aggregate redemption price of approximately $140.5 million, including accrued interest.

Under the current share repurchase plan, effective as of October 27, 2020, the Company repurchased approximately 495,000 of its common shares for an aggregate amount of approximately $12.6 million through September 30, 2021. B. Riley's Board of Directors has approved a new annual share repurchase program for up to $50 million.

Financial Summary


	Three Months Ended				Nine Months Ended
	September 30,				September 30,

(Dollars in thousands, except for share data)	2021		2020		2021		2020

Net income available to common shareholders	$	48,621	$	47,291	$	375,415	$	30,324

Basic income per common share	$	1.76	$	1.86	$	13.75	$	1.18
Diluted income per common share	$	1.69	$	1.75	$	13.07	$	1.14

For the third quarter, net income available to common shareholders was $48.6 million, or $1.69 diluted earnings per share (EPS). For the first nine months of 2021, net income available to common shareholders was $375.4 million, or $13.07 diluted EPS.


	Three Months Ended				Nine Months Ended
	September 30,				September 30,

(Dollars in thousands)	2021		2020		2021		2020

Operating Revenues ⁽²⁾	$	363,325	$	194,500	$	1,000,633	$	528,657
Investment Gains (Loss)⁽⁴⁾		18,197		31,753		317,818		(36,142)
Total Revenues	$	381,522	$	226,253	$	1,318,451	$	492,515

Operating Adjusted EBITDA ⁽³⁾	$	101,091	$	67,222	$	315,932	$	184,886
Investment Adjusted EBITDA ⁽⁵⁾		13,010		26,911		308,537		(38,554)
Total Adjusted EBITDA ⁽¹⁾	$	114,101	$	94,133	$	624,469	$	146,332

For the three months ended September 30, 2021:

Total revenues increased 69% to $381.5 million compared to $226.3 million for the prior year quarter.
Total adjusted EBITDA⁽¹⁾increased 21% to $114.1 million compared to $94.1 million for the prior year period.
Operating revenues⁽²⁾ increased 87% to $363.3 million from $194.5 million for the prior year period.
Operating adjusted EBITDA⁽³⁾ increased 50% to $101.1 million from $67.2 million for the prior year period.
Quarterly investment gains⁽⁴⁾ were $18.2 million which reflect certain strategic investments held by the Company.

For the first nine months of 2021:

Total revenues increased 168% to $1.3 billion compared to $492.5 million for the prior year period.
Total adjusted EBITDA ⁽¹⁾ increased 327% to $624.5 million compared to $146.3 million for the prior year period.
Operating revenues⁽²⁾ increased 89% to $1.0 billion compared to $528.7 million for the prior year period.
Operating adjusted EBITDA⁽³⁾ increased 71% to $315.9 million from $184.9 million for the prior year period.

As of September 30, cash and investments⁽⁶⁾ totaled approximately $2.3 billion including cash and cash equivalents of $378.2 million. Total cash and investments,⁽⁶⁾ net of debt, was $593.4 million.

Segment Financial Summary and Highlights


	Operating Revenues⁽²⁾				Investment Gains ⁽⁴⁾				Total Segment Revenue
	Three Months Ended September 30,				Three Months Ended September 30,				Three Months Ended September 30,
(Dollars in thousands)	2021		2020		2021		2020		2021		2020
Capital Markets		$ 161,718		$ 81,841		$ 16,935		$ 31,399		$ 178,653		$ 113,240
Wealth Management		117,572		17,289		1,262		354		118,834		17,643
Auction and Liquidation		37,072		44,185		-		-		37,072		44,185
Financial Consulting		21,291		25,583		-		-		21,291		25,583
Principal Investments		19,300		21,602		-		-		19,300		21,602
Brands		6,372		4,000		-		-		6,372		4,000

	Segment Operating Income⁽⁷⁾				Investment Income ⁽⁵⁾				Total Segment Income
	Three Months Ended September 30,				Three Months Ended September 30,				Three Months Ended September 30,
(Dollars in thousands)	2021		2020		2021		2020		2021		2020
Capital Markets		$ 76,142		$ 33,198		$ 11,748		$ 26,557		$ 87,890		$ 59,755
Wealth Management		5,322		426		1,262		354		6,584		780
Auction and Liquidation		6,298		12,000		-		-		6,298		12,000
Financial Consulting		2,769		7,248		-		-		2,769		7,248
Principal Investments		6,506		8,368		-		-		6,506		8,368
Brands		4,686		2,292		-		-		4,686		2,292

Capital Markets segment revenues increased 58% to $178.7 million for the third quarter. Excluding investment gains ⁽⁴⁾ of $16.9 million, segment operating revenues⁽²⁾ increased 98% year-over-year to $161.7 million, and segment operating income ⁽⁷⁾ increased 129% to $76.1 million for the quarter. Strong performance was primarily driven by investment banking and fees generated from several significant debt and equity capital markets transactions completed during the quarter.

Wealth Management segment revenues and segment income increased to $118.8 million and $6.6 million, respectively, reflecting the addition of National Holdings which was acquired in February 2021. Combined wealth management assets under management were approximately $32 billion as of September 30, 2021.

Auction and Liquidation segment revenues totaled $37.1 million, driven by retail liquidation activity in Europe. Results for this segment vary from quarter-to-quarter and year-to-year due to the episodic impact of large retail liquidation engagements.

Principal Investments segment companies, magicJack and United Online, continued to perform above expectations, contributing recurring cash flow to the Company.

Supplemental Financial Data

Additional metrics related to operating results and investments can be found in the Third Quarter 2021 Financial Supplement on B. Riley's investor relations website.

Conference Call Details

Management will host an investor call to discuss its third quarter results today, Thursday, October 28, 2021, at 4:30 p.m. Eastern time (1:30 p.m. Pacific time). Investors may access the live broadcast and archived recording via the Company's investor relations website at ir.brileyfin.com.

Date and Time:	Thursday October 28, 2021 at 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
Dial In:	1-855-327-6837 (toll-free) or 1-631-891-4304 (international)
Audio Webcast:	https://ir.brileyfin.com/events-and-presentations

Replay (expires Thursday, November 4, 2021)
Dial In:	1-844-512-2921; 10016591 (pin)
Replay Link:	https://ir.brileyfin.com/events-and-presentations

About B. Riley Financial

B. Riley Financial provides collaborative solutions tailored to fit the capital raising and business advisory needs of its clients and partners. B. Riley operates through several subsidiaries that offer a diverse range of complementary end-to-end capabilities spanning investment banking and institutional brokerage, private wealth and investment management, financial consulting, corporate restructuring, operations management, risk and compliance, due diligence, forensic accounting, litigation support, appraisal and valuation, auction, and liquidation services. For more information, please visit www.brileyfin.com.

Footnotes (See "Note Regarding Use of Non-GAAP Financial Measures" for further discussion of these non-GAAP terms.)
(1)	Adjusted EBITDA includes earnings before interest, taxes, depreciation, amortization, restructuring costs, share-based payments, gain on extinguishment of loans, impairment of tradenames, and transaction related and other costs. For a definition of adjusted EBITDA and a reconciliation to GAAP financial measures, please see the Appendix hereto.
(2)	Operating revenue is defined as the sum of revenues from services and fees, interest income - loans and securities lending, and sale of goods.
(3)	Operating adjusted EBITDA is defined as adjusted EBITDA excluding trading income (losses) and fair value adjustments on loans and other investment related expenses.
(4)	Investment gains (loss) is defined as trading income and fair value adjustments on loans.
(5)	Investment adjusted EBITDA and investment income (loss) are defined as trading income (losses) and fair value adjustments on loans, less other investment related expenses.
(6)	Total cash and investments is defined as the sum of cash and cash equivalents, restricted cash, due from clearing brokers net of due to clearing brokers, securities and other investments owned, at fair value net of (i) securities sold not yet purchased and (ii) noncontrolling interest related to investments, advances against customer contracts, loans receivable, at fair value net of loan participations sold, and other investments reported in prepaid and other assets.
(7)	Segment operating income (loss) is defined as segment income (loss) excluding trading income (losses) and fair value adjustments on loans and other investment related expenses.

Note Regarding Use of Non-GAAP Financial Measures

Certain of the information set forth herein, including operating revenues, adjusted EBITDA, operating adjusted EBITDA, and investment adjusted EBITDA, may be considered non-GAAP financial measures. B. Riley Financial believes this information is useful to investors because it provides a basis for measuring the Company's available capital resources, the operating performance of its business and its revenues and cash flow, (i) excluding in the case of operating revenues, trading income (losses) and fair value adjustments on loans, (ii) excluding in the case of adjusted EBITDA, net interest expense, provisions for or benefit from income taxes, depreciation, amortization, fair value adjustment, restructuring costs, gain on extinguishment of loans, impairment of trade names, stock-based compensation and transaction and other expenses, (iii) excluding in the case of operating adjusted EBITDA, the aforementioned adjustments for adjusted EBITDA as well as trading income (losses) and fair value adjustments on loans, and other investment related expenses, (iv) including in the case of investment adjusted EBITDA, trading income (losses) and fair value adjustments on loans, net of other investment related expenses, and (v) including in the case of total cash and investments, net of debt, total cash, net securities and investments, and other minus total debt, that would normally be included in the most directly comparable measures calculated and presented in accordance with Generally Accepted Accounting Principles ("GAAP"). In addition, the Company's management uses these non-GAAP financial measures along with the most directly comparable GAAP financial measures in evaluating the Company's operating performance, management compensation, capital resources, and cash flow. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP, and non-financial measures as reported by the Company may not be comparable to similarly titled amounts reported by other companies.

Forward-Looking Statements

Statements in this press release that are not descriptions of historical facts are forward-looking statements that are based on management's current expectations and assumptions and are subject to risks and uncertainties. If such risks or uncertainties materialize or such assumptions prove incorrect, our business, operating results, financial condition, and stock price could be materially negatively affected. You should not place undue reliance on such forward-looking statements, which are based on the information currently available to us and speak only as of the date of this press release. Such forward-looking statements include, but are not limited to, statements regarding our excitement and the expected growth of our business segments. Factors that could cause such actual results to differ materially from those contemplated or implied by such forward-looking statements include, without limitation, the risks associated with the unpredictable and ongoing impact of the COVID-19 pandemic and other risks described from time to time in B. Riley Financial, Inc.'s periodic filings with the SEC, including, without limitation, the risks described in B. Riley Financial, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2020 and in our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2021 and June 30, 2021 under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" (as applicable). Additional information will be set forth in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2021. These factors should be considered carefully, and readers are cautioned not to place undue reliance on such forward-looking statements. All information is current as of the date this press release is issued, and B. Riley Financial, Inc. undertakes no duty to update this information.

Contacts

Investors	Media
Mike Frank	Jo Anne McCusker
ir@brileyfin.com	press@brileyfin.com
(212) 409-2424	(646) 885-5425

B. RILEY FINANCIAL, INC.
Condensed Consolidated Balance Sheets
(Dollars in thousands, except par value)
				September 30,		December 31,
				2021		2020
				(Unaudited)
Assets
Assets:
	Cash and cash equivalents			$	378,205	$	103,602
	Restricted cash				927		1,235
	Due from clearing brokers				599,715		7,089
	Securities and other investments owned, at fair value				1,352,100		777,319
	Securities borrowed				1,347,656		765,457
	Accounts receivable, net				54,790		46,518
	Due from related parties				1,513		986
	Loans receivable, at fair value (includes $140,064 and $295,809from related parties at
	September 30, 2021 and December 31, 2020, respectively)				350,762		390,689
	Prepaid expenses and other assets				448,985		87,462
	Operating lease right-of-use assets				59,735		48,799
	Property and equipment, net				13,720		11,685
	Goodwill				237,961		227,046
	Other intangible assets, net				196,697		190,745
	Deferred tax assets, net				4,085		4,098
		Total assets		$	5,046,851	$	2,662,730
Liabilities and Equity
Liabilities:
	Accounts payable			$	4,028	$	2,722
	Accrued expenses and other liabilities				277,586		168,478
	Deferred revenue				68,310		68,651
	Deferred tax liabilities, net				67,023		34,248
	Due to related parties and partners				176		327
	Due to clearing brokers				—		13,672
	Securities sold not yet purchased				419,211		10,105
	Securities loaned				1,345,825		759,810
	Mandatorily redeemable noncontrolling interests				4,196		4,700
	Operating lease liabilities				72,158		60,778
	Notes payable				357		37,967
	Loan participations sold				—		17,316
	Revolving credit facility				80,000		—
	Term loans, net				252,927		74,213
	Senior notes payable, net				1,362,847		870,783
		Total liabilities			3,954,644		2,123,770

Commitments and contingencies
Redeemable noncontrolling interests in equity of subsidiaries					345,000		—
B. Riley Financial, Inc. equity:
	Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 4,485 and 3,971 shares issued and
	outstanding as of September 30, 2021 and December 31, 2020, respectively; and liquidation preference
	of $112,128 and $99,260 as of September 30, 2021 and December 31, 2020, respectively				—		—
	Common stock, $0.0001 par value; 100,000,000 shares authorized; 27,554,664 and 25,777,796
	issued and outstanding as of September 30, 2021 and December 31, 2020, respectively				3		3
	Additional paid-in capital				399,349		310,326
	Retained earnings				309,550		203,080
	Accumulated other comprehensive loss				(2,207)		(823)
		Total B. Riley Financial, Inc. stockholders' equity			706,695		512,586
Noncontrolling interests					40,512		26,374
		Total equity			747,207		538,960
			Total liabilities and equity	$	5,046,851	$	2,662,730

B. RILEY FINANCIAL, INC.
Condensed Consolidated Statements of Income
(Unaudited)
(Dollars in thousands, except share data)

			Three Months Ended				Nine Months Ended
			September 30,				September 30,
			2021		2020		2021		2020
Revenues:
	Services and fees		$	301,497	$	144,823	$	857,109	$	429,799
	Trading income (losses) and fair value adjustments on loans			18,197		31,753		317,818		(36,142)
	Interest income - Loans and securities lending			26,869		26,026		89,280		72,383
	Sale of goods			34,959		23,651		54,244		26,475
		Total revenues		381,522		226,253		1,318,451		492,515
Operating expenses:
	Direct cost of services			18,019		23,264		41,435		51,201
	Cost of goods sold			12,442		9,813		21,394		11,442
	Selling, general and administrative expenses			244,218		97,143		635,484		291,449
	Restructuring charge			—		1,557		—		1,557
	Impairment of tradenames			—		—		—		12,500
	Interest expense - Securities lending and loan participations sold			10,097		10,975		40,269		30,669
		Total operating expenses		284,776		142,752		738,582		398,818
		Operating income		96,746		83,501		579,869		93,697
Other income (expense):
	Interest income			70		67		175		537
	Gain on extinguishment of loans and other			1,758		—		8,267		—
	Income (loss) from equity investments			1,149		409		1,172		(145)
	Interest expense			(25,372)		(16,374)		(66,014)		(48,537)
		Income before income taxes		74,351		67,603		523,469		45,552
Provision for income taxes				(22,693)		(18,711)		(140,113)		(13,380)
		Net income		51,658		48,892		383,356		32,172
Net income (loss) attributable to noncontrolling interests				1,108		513		2,474		(1,382)
		Net income attributable to B. Riley Financial, Inc.	$	50,550	$	48,379	$	380,882	$	33,554
Preferred stock dividends				1,929		1,088		5,467		3,230
		Net income available to common shareholders	$	48,621	$	47,291	$	375,415	$	30,324

Basic income per common share			$	1.76	$	1.86	$	13.75	$	1.18
Diluted income per common share			$	1.69	$	1.75	$	13.07	$	1.14

Weighted average basic common shares outstanding				27,570,716		25,446,292		27,297,917		25,699,735
Weighted average diluted common shares outstanding				28,794,066		27,050,448		28,726,492		26,689,700

B. RILEY FINANCIAL, INC.
Segment Financial Information
(Unaudited)
(Dollars in thousands)

			Three Months Ended				Nine Months Ended
			September 30,				September 30,
			2021		2020		2021		2020
Capital Markets segment:
	Revenues - Services and fees		$	134,849	$	55,815	$	431,825	$	189,779
	Trading income (loss) and fair value adjustments on loans			16,935		31,399		311,335		(36,536)
	Interest income - Loans and securities lending			26,869		26,026		89,280		72,383
	Total revenues			178,653		113,240		832,440		225,626
	Selling, general and administrative expenses			(80,152)		(40,920)		(231,765)		(125,844)
	Restructuring charge			—		(917)		—		(917)
	Interest expense - Securities lending and loan participations sold			(10,097)		(10,975)		(40,269)		(30,669)
	Depreciation and amortization			(514)		(673)		(1,526)		(1,864)
		Segment income		87,890		59,755		558,880		66,332
Wealth Management segment:
	Revenues - Services and fees			117,572		17,289		270,558		51,494
	Trading income and fair value adjustments on loans			1,262		354		6,483		394
	Total revenues			118,834		17,643		277,041		51,888
	Selling, general and administrative expenses			(110,157)		(16,395)		(260,331)		(49,226)
	Depreciation and amortization			(2,093)		(468)		(6,832)		(1,421)
		Segment income		6,584		780		9,878		1,241
Auction and Liquidation segment:
	Revenues - Services and fees			2,745		21,473		15,637		49,340
	Revenues - Sale of goods			34,327		22,712		52,162		23,757
	Total revenues			37,072		44,185		67,799		73,097
	Direct cost of services			(13,622)		(18,373)		(27,742)		(36,406)
	Cost of goods sold			(11,999)		(9,046)		(19,578)		(9,360)
	Selling, general and administrative expenses			(5,153)		(4,625)		(9,719)		(8,880)
	Restructuring charge			—		(140)		—		(140)
	Depreciation and amortization			—		(1)		—		(2)
		Segment income		6,298		12,000		10,760		18,309
Financial Consulting segment:
	Revenues - Services and fees			21,291		25,583		66,435		65,142
	Selling, general and administrative expenses			(18,436)		(17,759)		(55,896)		(48,756)
	Restructuring charge			—		(500)		—		(500)
	Depreciation and amortization			(86)		(76)		(273)		(216)
		Segment income		2,769		7,248		10,266		15,670
Principal Investments - United Online and magicJack segment:
	Revenues - Services and fees			18,669		20,663		57,394		63,037
	Revenues - Sale of goods			631		939		2,081		2,718
	Total revenues			19,300		21,602		59,475		65,755
	Direct cost of services			(4,397)		(4,891)		(13,693)		(14,795)
	Cost of goods sold			(443)		(767)		(1,816)		(2,082)
	Selling, general and administrative expenses			(5,458)		(4,840)		(15,096)		(14,352)
	Depreciation and amortization			(2,496)		(2,736)		(7,558)		(8,466)
		Segment income		6,506		8,368		21,312		26,060
Brands segment:
	Revenues - Services and fees			6,372		4,000		15,261		11,007
	Selling, general and administrative expenses			(972)		(994)		(2,338)		(2,207)
	Depreciation and amortization			(714)		(714)		(2,143)		(2,143)
	Impairment of tradenames			—		—		—		(12,500)
		Segment income (loss)		4,686		2,292		10,780		(5,843)
Consolidated operating income from reportable segments				114,733		90,443		621,876		121,769

Corporate and other expenses				(17,987)		(6,942)		(42,007)		(28,072)
Interest income				70		67		175		537
Gain on extinguishment of loans and other				1,758		—		8,267		—
Income (loss) on equity investments				1,149		409		1,172		(145)
Interest expense				(25,372)		(16,374)		(66,014)		(48,537)
	Income before income taxes			74,351		67,603		523,469		45,552
Provision for income taxes				(22,693)		(18,711)		(140,113)		(13,380)
	Net income			51,658		48,892		383,356		32,172
Net income (loss) income attributable to noncontrolling interests				1,108		513		2,474		(1,382)
	Net income attributable to B. Riley Financial, Inc.			50,550		48,379		380,882		33,554
Preferred stock dividends				1,929		1,088		5,467		3,230
	Net income available to common shareholders		$	48,621	$	47,291	$	375,415	$	30,324

B. RILEY FINANCIAL, INC.
Adjusted EBITDA and Operating Adjusted EBITDA Reconciliation
(Unaudited)
(Dollars in thousands)

				Three Months Ended				Nine Months Ended
				September 30,				September 30,
				2021		2020		2021		2020
Net income attributable to B. Riley Financial, Inc.				$	50,550	$	48,379	$	380,882	$	33,554
Adjustments:
	Provision for income taxes				22,693		18,711		140,113		13,380
	Interest expense				25,372		16,374		66,014		48,537
	Interest income				(70)		(67)		(175)		(537)
	Share based payments				9,374		4,778		23,508		14,267
	Depreciation and amortization				6,142		4,886		19,066		14,765
	Restructuring costs				—		1,557		—		1,557
	Gain on extinguishment of loans				—		—		(6,509)		—
	Impairment of tradenames				—		—		—		12,500
	Transactions related costs and other				40		(485)		1,570		8,309

		Total EBITDA adjustments			63,551		45,754		243,587		112,778

			Adjusted EBITDA	$	114,101	$	94,133	$	624,469	$	146,332
Operating EBITDA Adjustments:
	Trading (income) losses and fair value adjustments on loans				(18,197)		(31,753)		(317,818)		36,142
	Other investment related expenses				5,187		4,842		9,281		2,412

		Total Operating EBITDA Adjustments			(13,010)		(26,911)		(308,537)		38,554

Operating Adjusted EBITDA				$	101,091	$	67,222	$	315,932	$	184,886

B. RILEY FINANCIAL, INC.
Adjusted Net Income Reconciliation
(Unaudited)
(Dollars in thousands, except share data)

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2021		2020		2021		2020
Net income attributable to B. Riley Financial, Inc.		$	50,550	$	48,379	$	380,882	$	33,554
Adjustments:
	Share based payments		9,374		4,778		23,508		14,267
	Amortization of intangible assets		5,156		3,919		16,176		11,967
	Restructuring costs		—		1,557		—		1,557
	Gain on extinguishment of loans		—		—		(6,509)		—
	Impairment of tradenames		—		—		—		12,500
	Transactions related costs and other		40		(485)		1,570		8,309
	Income tax effect of adjusting entries		(4,514)		(2,725)		(9,587)		(13,456)
Adjusted net income attributable to B. Riley Financial, Inc.		$	60,606	$	55,423	$	406,040	$	68,698

Adjusted income per common share:
	Adjusted basic income per share	$	2.20	$	2.18	$	14.87	$	2.67
	Adjusted diluted income per share	$	2.10	$	2.05	$	14.13	$	2.57

Shares used to calculate adjusted basic net income per share			27,570,716		25,446,292		27,297,917		25,699,735
Shares used to calculate adjusted diluted net income per share			28,794,066		27,050,448		28,726,492		26,689,700

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SOURCE B. Riley Financial

B. Riley Financial Reports Third Quarter 2021 Results; Declares $4.00 Dividend