B. Riley Financial, Inc. (RILY) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $12.44 million, or $ 0.64 a share in the quarter, against a net loss of $1 million, or $0.06 a share in the last year period.
Revenue during the quarter surged 371.52 percent to $93.18 million from $19.76 million in the previous year period. Gross margin for the quarter expanded 1292 basis points over the previous year period to 69.81 percent. Operating margin for the quarter period stood at positive 33.76 percent as compared to a negative 6.71 percent for the previous year period.
Operating income for the quarter was $31.46 million, compared with an operating loss of $1.33 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $25.13 million compared to negative $0.22 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at 26.97 percent for the quarter compared to negative 1.11 percent in the last year period.
"As we highlighted in our preliminary release last month, our Q4 results were strong across the board, resulting in a record quarter for B. Riley Financial," said company chairman and chief executive officer, Bryant Riley. "This performance was driven by continued strength in our retail asset disposition business, substantial growth in our Capital Markets segment, along with meaningful cash flow contribution from United Online.
Operating cash flow improves significantlyB. Riley Financial has generated cash of $80.28 million from operating activities during the year, up 153.48 percent or $48.61 million, when compared with the last year. The company has spent $36.87 million cash to meet investing activities during the year as against cash inflow of $4.92 million in the last year. It has incurred net capital expenditure of $0.63 million on net basis during the year, up 169.36 percent or $0.40 million from year ago.
Cash flow from financing activities was $40.40 million for the year as against cash outgo of $28.05 million in the last year period.
Cash and cash equivalents stood at $112.10 million as on Dec. 31, 2016, up 273.53 percent or $82.09 million from $30.01 million on Dec. 31, 2015.
Working capital increases sharply
B. Riley Financial has recorded an increase in the working capital over the last year. It stood at $74.32 million as at Dec. 31, 2016, up 45.72 percent or $23.32 million from $51 million on Dec. 31, 2015. Current ratio was at 1.89 as on Dec. 31, 2016, down from 3.32 on Dec. 31, 2015.
Debt increases substantiallyB. Riley Financial has witnessed an increase in total debt over the last one year. It stood at $27.70 million as on Dec. 31, 2016, up 10,083.82 percent or $27.43 million from $0.27 million on Dec. 31, 2015. Total debt was 10.47 percent of total assets as on Dec. 31, 2016, compared with 0.21 percent on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
