B. Riley Financial Reports 41.3% Stock Movement

B. Riley Financial, Inc. (NASDAQ: RILY) has recently filed its annual report on Form 10-K for the fiscal year ended December 31, 2023. The audited financial statements reflected certain non-cash adjustments to the preliminary results announced on February 29, 2024. Here is a breakdown of the financial results for the year ended December 31, 2023:

  • Total revenues were $1,647,185, with a final figure of $1,643,600 after adjustments.
  • Operating income (loss) was initially reported at $150,630 but was adjusted to $144,653.
  • The net loss available to common shareholders changed from the preliminary figure of $86,371 to a final figure of $107,967 after adjustments.
  • Adjusted EBITDA was initially reported at $239,877 and adjusted to $210,244.
  • Operating adjusted EBITDA was $367,604 and was adjusted to $363,009.

The press release also provided a summary of the adjustments from the preliminary results, including changes in total revenues, net loss available to common shareholders, total assets, adjusted EBITDA, and operating adjusted EBITDA.

The independent investigation conducted by the audit committee confirmed that the company and its executives had no involvement with, or knowledge of, any alleged misconduct concerning Mr. Brian Kahn or any of his affiliates.

The annual report also provided additional clarification regarding the company's investment in Freedom VCM and its ownership of Freedom VCM, which amounted to $281 million, or 31% in connection with the take-private transaction. As of December 31, 2023, the fair value of the investment in Freedom VCM totaled $287 million and was included in securities and other investments owned at fair value in the consolidated balance sheets.

B. Riley Financial is a diversified financial services platform that provides tailored solutions to meet the strategic, operational, and capital needs of its clients and partners. Through its affiliated subsidiaries, the company provides end-to-end financial services across various areas, including investment banking, institutional brokerage, private wealth and investment management, financial consulting, corporate restructuring, and more. The market has reacted to these announcements by moving the company's shares 41.3% to a price of $30.7. For more information, read the company's full 8-K submission here.

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