B. Riley Financial, Inc. (NASDAQ:RILY) Q2 2022 Earnings Conference Call July 28, 2022 4:30 PM ET

Company Participants

Bryant Riley – Chairman, Co-Founder and Co-Chief Executive Officer

Tom Kelleher – Co-Founder and Co-Chief Executive Officer

Phillip Ahn – Chief Financial Officer and Chief Operating Officer

Conference Call Participants

Sean Haydon – Charles Lane Capital

Brett Hendrickson – Nokomis Capital

Operator

Good afternoon, and welcome to B. Riley Financial's Second Quarter 2022 Earnings Call. B. Riley today issued a press release and presentation detailing its financial results for the second quarter of 2022. Copies are available in the Investors section of the company's website at ir.brileyfin.com. As a reminder, this call is being recorded. An audio replay will be available on the company's Investor Relations website later today.

Joining us today from B. Riley are Bryant Riley, Chairman, Co-Founder and Co-CEO; Tom Kelleher, Co-Founder and Co-CEO; and Phillip Ahn, CFO and COO. After management's remarks, we will open the line for questions. And before we conclude today's call, I will provide the necessary cautions regarding forward-looking statements.

I will now turn the call over to Mr. Bryant Riley. Mr. Riley, please proceed.

Bryant Riley

Welcome everyone and thank you for joining our call. Our [Technical Difficulty] are mostly unrealized and correlate to market contraction. Over the last year, we augmented our investments by increasing credit with our basting has become a larger and more integral part of our business to create value for our partners and shareholders and a strategy that we believe truly differentiates the B. Riley platform from our peers.

Oftentimes the companies we invest in are companies that we provide services to be it investment banking, financial consulting or real estate advisory services. At the same time, we have made concerted efforts over the last five years to expand sources of steady and recurring income to balance the more cyclical episodic business, which are currently slow. To put this in perspective, over the last 10 quarters, we have earned approximately $17 per share for our shareholders, including the first two quarters of 2022.

We believe that we are delivering on our objective of increasing our recurring EBITDA. The relative contribution from our less cyclical and less episodic businesses have meaningfully grown with the entire Riley platform generating $366 million of operating EBITDA over the trailing 12 months compared to $114 million of operating EBITDA in 2019. With increasing contributions from less cyclical and less episodic businesses exceeding the capital needed to support our dividend, we continue to have flexibility to invest across our businesses. To that end, we are pleased to deliver our shareholders $1 dividend for the quarter.