B. Riley Financial (RILY) Announces Preliminary Q4 Results

B. Riley Financial, Inc. (NASDAQ: RILY) ("B. Riley" or "the Company") today announced certain preliminary estimates for the fourth quarter and full year 2020 ending December 31, 2020.

Fourth Quarter 2020 Preliminary Results

• Net income: $162 to $167 million; $6.18 to $6.38 per diluted share
• Total adjusted EBITDA: $253 to $260 million
• Operating adjusted EBITDA: $120 to $125 million

Full Year 2020 Preliminary Results

• Net income: $196 to $201 million; $7.20 to $7.39 per diluted share
• Total adjusted EBITDA: $399 to $407 million
• Operating adjusted EBITDA: $305 to $310 million

"We are providing preliminary results for the fourth quarter and full year of 2020 that exceed our previously released guidance for net income by over $50 million, operating EBITDA guidance by $20 million and total EBITDA by over $70 million. Our updated estimates reflect better-than-expected operating performance and appreciation in our investment portfolio as of year-end," said Bryant Riley, Chairman and Co-Chief Executive Officer of B. Riley Financial. "Our Capital Markets business outperformed our initial forecasts, both in terms of our operating results and investments. We expect our cash and investments balance to be approximately $1.3 billion as of year-end, with over $300 million in total cash and investments net of debt. The current momentum of our combined operating units has never been stronger, and we are increasingly excited about the opportunities ahead as we look to continue to build upon our growing platform."

For the fourth quarter of 2020, net income attributable to the Company is expected to be within the range of $162 million and $167 million. Diluted income per common share is expected to be within the range of $6.18 to $6.38. This compares to $17.1 million and $0.59 per diluted share for the fourth quarter of 2019. The Company estimates fourth quarter total adjusted EBITDA (1) to be within the range of $253 million and $260 million and operating adjusted EBITDA (2) in the range of $120 million and $125 million.

For the full year of 2020, net income attributable to the Company is expected to be within the range of $196 million and $201 million. Diluted income per common share is expected to be within the range of $7.20 to $7.39. This compares to $81.6 million and $2.95 per diluted share for the full year of 2019, representing a year-over-year increase of approximately 140% for the lower end of the range compared to the same prior year period. Total adjusted EBITDA (1) is expected to be within the range of $399 million and $407 million, an increase of over 90% for the lower end of the range when compared with total adjusted EBITDA of $207.9 million from the same prior year period. Operating adjusted EBITDA (2) is expected to be within the range of $305 million to $310 million, a year-over-year increase of over 160% compared to $113.6 million from the prior year period.

As of December 31, 2020, the Company expects its cash and investments balance to be approximately $1.3 billion, with over $300 million in total cash and investments, net of debt (3).

These preliminary estimates are not a comprehensive statement of the Company's financial results. Actual results for the fourth quarter and full year of 2020 may differ from these preliminary unaudited estimates as a result of the completion of the Company's customary year-end closing, review and audit procedures and other developments arising between now and the time that its financial results are finalized.

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