B. Riley Financial, Inc. (NASDAQ: RILY) has released its preliminary financial results for the second quarter of 2024, indicating several significant changes compared to the previous period.
The net loss for the quarter ended June 30, 2024, is expected to be in the range of $435 to $475 million, translating to a loss per share of $14 to $15 based on 30.4 million weighted average common shares outstanding.
The company is anticipating a non-cash markdown of approximately $330 to $370 million related to its investment in Freedom VCM, the indirect parent entity of Franchise Group, Inc. (FRG), and the Vintage Capital loan receivable. Additionally, an impairment charge of $28 million is expected, primarily related to the goodwill of Targus, impacted by consumer spending habits.
Furthermore, a charge of approximately $25 million related to a valuation allowance for deferred income taxes for the quarter ended June 30, 2024, is expected.
Operating adjusted EBITDA for the same period is projected to be in the range of $50 to $55 million. The company's cash and cash equivalents as of June 30, 2024, are approximately $237 million, while total cash and investments amount to approximately $1.1 billion.
However, the total outstanding debt as of June 30, 2024, is approximately $2.16 billion, indicating a substantial financial liability.
The company has emphasized that these estimates are not a comprehensive statement of its quarterly financial results and are subject to change. Delays in finalizing the valuations of certain loans and investments have led to the company anticipating filing a form 12b-25 with the SEC to provide notice of the late filing of its quarterly report on Form 10-Q for the three months ended June 30, 2024.
B. Riley Financial will host a conference call to discuss these preliminary estimates for the second quarter of 2024 and provide an update to investors. The company has also mentioned its ongoing review of strategic alternatives for Great American Group as it works towards maximizing value from its existing principal positions and positioning the firm to capitalize on opportunities presented to its core operating businesses.
B. Riley Financial is a diversified financial services platform that delivers tailored solutions to meet the strategic, operational, and capital needs of its clients and partners. 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, operations management, and more.
As the company works to address challenges and navigate through the impacts of its investments, it aims to refocus on its core financial services businesses and support its valued clients across the small-cap and middle-market sectors. Today the company's shares have moved -2.4% to a price of $16.95. If you want to know more, read the company's complete 8-K report here.
