LOS ANGELES - B. Riley Financial, Inc. (NASDAQ: RILY) announced today that it will pay cash dividends on two series of its Preferred Stock, which are traded on NASDAQ under the tickers RILYP and RILYL. The dividends will be distributed to holders of the 6.875% Series A Cumulative Perpetual Preferred Stock and the 7.375% Series B Cumulative Perpetual Preferred Stock, with the payment date scheduled for October 31, 2024.
The Series A Preferred Stock dividend has been set at $0.42968750 per depositary share, while the Series B Preferred Stock will receive a dividend of $0.4609375 per depositary share. Each depositary share represents a 1/1000th fractional interest in a share of the respective Preferred Stock, with a liquidation preference equivalent to $25.00 per depositary share.
Record holders of the Series A and Series B Preferred Stock as of the close of business on October 28, 2024, will be eligible for the upcoming dividend payments. This financial move reflects B. Riley's commitment to delivering value to its shareholders through regular dividend payouts.
B. Riley Financial is known for its diversified financial services platform, which offers solutions tailored to the strategic and operational needs of its clients across various stages of the business life cycle. The company's services include investment banking, institutional brokerage, private wealth and investment management, financial consulting, corporate restructuring, and more. Additionally, B. Riley engages in investment activities to benefit its shareholders and provides senior secured loans through certain affiliates.
This announcement of dividend payments is based on a press release statement from B. Riley Financial, Inc. The information provided offers a glimpse into the company's ongoing financial strategies and its approach to managing shareholder returns.
In other recent news, B. Riley Financial, Inc. has entered into a $386 million agreement with Oaktree Capital Management, forming a strategic partnership with its Great American Group businesses. This deal is expected to close in the fourth quarter of 2024, resulting in the creation of Great American Holdings, LLC. The company has also announced significant financial changes, including amending its credit facilities and repaying approximately $85.9 million of its term loans.
In a bid to streamline operations, B. Riley Financial is planning to sell a majority stake in its Great American Group and is restructuring its debt. The company's founder, chairman, and co-CEO, Bryant Riley, has proposed a buyout to take the company private.
Furthermore, B. Riley Securities, a subsidiary of B. Riley Financial, has appointed Brendon Philipps as Managing Director to lead their Capital Structure Advisory and Liability Management efforts. This comes amidst an estimated net loss between $435 million to $475 million for the second quarter of 2024, attributed to non-cash impairment charges and write-downs. Despite this, B. Riley maintained an operating adjusted EBITDA between $50 million to $55 million. These are some of the recent developments that have been shaping the trajectory of B. Riley Financial, Inc.
InvestingPro Insights
B. Riley Financial's recent dividend announcement comes amid a challenging financial landscape for the company. According to InvestingPro data, the firm's market capitalization stands at $149.96 million, reflecting a significant decline in valuation. This is underscored by the stock's performance, with InvestingPro Tips indicating that RILY's price has fallen significantly over the last year, with a one-year price total return of -87.0%.
Despite these headwinds, B. Riley continues to prioritize shareholder returns. An InvestingPro Tip highlights that the company pays a significant dividend to shareholders, with a current dividend yield of 40.4%. This aligns with the company's track record, as another InvestingPro Tip notes that B. Riley has maintained dividend payments for 11 consecutive years.
However, investors should be aware of the company's financial challenges. InvestingPro data shows that B. Riley was not profitable over the last twelve months, with a negative gross profit margin of -1.24%. This context adds importance to the company's decision to continue dividend payments, potentially as a means to retain investor confidence.
For a more comprehensive analysis, InvestingPro offers 11 additional tips for RILY, providing deeper insights into the company's financial health and market position.
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