Q3 2021 B Riley Financial Inc Earnings Call
Good afternoon, and welcome to B Riley Financial's third quarter 2021 earnings call.
Earlier today B Riley issued a press release and presentation detailing its financial results for the third quarter.
Copies are available in the investors section of the company's website at IR Dot B Riley.
<unk> Dot com.
As a reminder, this call is being recorded and audio replay will be available on the company's Investor Relations website later today.
Joining us today from B, Riley or Brian Reilly, Chairman co founder and co CEO, Tom Kelleher co founder and co CEO and Philip on CFO and CMO.
After management's remarks, we will open the line for questions.
And before we conclude today's call I'll provide the necessary cautions regarding forward looking statements.
I will now turn the call over to Mr. Bryant Riley Mr. Riley. Please proceed.
Thanks, Operator, and welcome everyone. We are pleased to report another solid quarter for B Riley financial on previous calls we've discussed our strategy to grow our steady state and recurring businesses and we've continued to deliver on that strategy, both on a top and bottom line basis.
Year to date as of September 30th we generated total revenues and total adjusted EBITDA of $1 3 billion and $624 5 million respectfully.
This represents a year over year revenue increase of 160% in the 327% increase in our adjusted EBITDA in the same period operating revenues totaled 1 billion for the first nine months with operating adjusted EBITDA of 315.9 billion. This reflects a year over year increase of 89% and operating revenues and a <unk>.
71% increase in operating adjusted EBITDA.
Over the last year B Riley Securities has taken major strides in establishing itself as a preferred banking partner for small and mid cap companies.
Outside of the Bulge bracket firms there are few banks with the capabilities to lead and participate in the equity transactions of more than $100 million and year to date B Riley Securities has raised nearly $3 billion in that capacity.
Our investment banking division continues to gain market share and IPO underwriting follow on offerings debt raises Atms and spec related transactions.
We acknowledge that our diversified business can be difficult to analyze our ultimate goal is to continue to utilize our cash flows to enhance our business, making accretive acquisitions and to return capital to our shareholders.
To that end, we believe our recurring dividend as an important measuring stick for our shareholders in line with our stated commitment we have increased our regular quarterly dividend to one dollar per share and declared a special dividend of $3 per share for total third quarter dividend of $4 per common share.
Upon payment of our third quarter dividend, we will have returned a total of $9 per share in common stock dividends to shareholders for the first three quarters.
The increase in our regular dividend reflects our increasing confidence in our recurring cash flows as well as the continued growth in our episodic businesses.
Balance sheet continues to be very strong and our capital base has continued to increase reflecting the growing cash flows and strong fundamentals of our business.
At the same time, we have made meaningful progress, reducing our debt expense, but recently redeeming two of our higher rated bond series, while also issuing debt at a rate that is approximately 200 basis points lower.
We will continue to seek ways to reduce our overall cost of capital in the coming quarters.
Taken together, we have never been more confident in the power of our combined platform and our ability to capitalize on the opportunities we see ahead.
Earlier today B Riley financial as ranked number two unfortunate magazine's fastest growing companies list for 2021.
Which ranks the top performing publicly traded companies based on revenue profits and total returns over the three year period, ending June 30th 2021.
It's extremely humbling and gratifying to earn extent external recognition of our accomplishments and continued momentum. We appreciate the trust and partnership with our clients and shareholders and are especially grateful for the world class team of B Riley and their continued dedication as always our focus will remain on delivering for all of our stakeholders.
Finally, before I turn the call over to Phil I wanted to take a moment to welcome our New Board member Rinella brands, who currently serves on our audit and governance committees, where there has been involved in the venture capital industry for over 20 years and has extensive experience advising early stage growth companies and capital raising and M&A initiatives.
Among her many accomplishments Rene cofounded, the woman's founders network, which is dedicated to supporting female entrepreneurs by providing access to mentorship visibility in capital. She is a terrific addition to our board and we could not be more pleased to welcome her to B Riley.
That I will now turn the call over to Phil on our CFO M. C O O who will provide more context around our quarterly metrics and then Tom Kelleher co CEO will discuss some highlights across our operating units over to you Phil.
Thanks, Brian.
As Brian noted, we reported strong results for our third quarter ending September 30.
On a consolidated basis.
We reported total revenues of $381 5 billion up 69% from the prior year period.
Total adjusted EBITDA was $114 1 million, which was up 21% year over year.
Net income available to common shareholders was $48 6 million or $1 69 per diluted share.
Compares to net income of $47 3 million from $1.75 per diluted share for the prior year period.
Our third quarter results included operating revenues of $363 3 million a year over year increase of 87% and operating adjusted EBITDA of 101 million, which was up 50% year over year.
During the quarter. We also saw modest investment gains of approximately $18 million, which includes both realized and unrealized gains on certain strategic investments that we hold.
Overall, our strong quarter was largely driven by momentum in our investment banking division.
This was enhanced by contributions from our recently expanded wealth management Division and continued cash flow generation from our principal investments companies and our brands businesses.
Turning to our reportable segments, starting with capital markets, which includes our investments in operating results from investment banking institutional brokerage and fund management.
Excluding investment gains capital markets segment operating revenues totaled $161 7 million, which represented an increase of 98% year over year.
Operating income was $76 1 million, which was up 129% year over year.
Now turning to our wealth management segment segment revenues and segment income increased to $118 8 million and $6 6 million respectively.
This increase was primarily related to the addition of National Holdings, which we acquired in February.
Our auction and liquidation segment revenues and segment income totaled $37 1 million and $6 3 million respectively.
As noted on prior calls results from this segment tend to be variable due to the episodic nature of large at retail liquidation engagements.
Financial consulting segment revenues and segment income totaled $21 3 million and $2 8 million respectively.
Results from our legacy glass Ratner consulting division and our appraisal division were impacted by the overall market conditions in the restructuring and ABL lending markets.
Our principal investments companies Magicjack and United online contributed revenues of $19 3 million and segment income of $6 5 billion.
These companies continue to provide steady cash flow to our platform.
And lastly, our brands segment continues to make contributions to the overall B Riley platform, having generated segment revenue was up $6 4 million and segment income of $4 7 million related to the licensing of brand trademarks.
As a reminder, adjusted EBITDA and our metrics for operating and investment results are non-GAAP financial measures. Please refer to our earnings release for a definition of these terms and for a reconciliation to the nearest GAAP measures investors can also find additional details relating to these metrics and related reconciliations in the financial supplement on our Investor Relations website.
Now turning to some highlights from our balance sheet.
At September 30th B, Riley financial had $378 million in unrestricted cash and cash equivalents.
933 million in net securities into other investments owned.
And 351 billion of loans receivable.
At quarter end, we had total cash and investments balance of approximately $2 3 billion, which includes $43 million of other investments reported in prepaid and other assets.
At quarter end, our total debt balance was approximately $1 7 billion.
And net of our debt.
B Riley Financial's cash and investments totaled approximately 593 million at September 30.
Finally, as Brian mentioned, we declared a total third quarter dividend of $4 per common share.
This includes an increase in our regular quarterly dividend from 50 to one dollar per share.
Additionally, we declared a special one time dividend of $3 per common share.
$4 in total Q3 dividend payments will be paid on or about November 23rd to common shareholders of record as of November nine.
That completes my financial summary, now I'll turn the call over to our co CEO, Tom Kelleher Tom.
Thanks, Phil this quarter, we continue to diversify and expand our opportunities both in terms of new businesses as well as in our ability to attract quality talent.
Adding complementary practices like cyber security Advisory financial sponsors group and our real estate Division has enabled us to provide superior execution capabilities, while continuing to deliver on our core services become known for.
Our clients are the obvious beneficiary of our expanded capabilities, our investment bank's advisory consultants and wealth managers have also benefited.
Everyday we see more and more collaboration and were full activity across our operating groups and there is no greater validation of our platform strategy and from our internal B Riley stakeholders our colleagues.
We believe our philosophy and diverse platform continue to be our key differentiators.
It's enabled us to successfully recruit several experienced and accomplished professionals across our divisions amid this highly competitive market for talent.
Last quarter, we stated our intent to build our asset management and fixed income. Since then we've welcomed back former colleague West Commons and his team at 272 capital.
He and his team employs small cap strategy rooted in fundamental research, which closely aligns with our own.
West serves as president of our asset management Division and will continue to oversee the funds of 272 capital. In addition to B Riley's private funds.
Just to support the growth of our fixed income Division. We also recently named Tim Sullivan head of fixed income with B Riley Securities Tim.
Tim experience complements the firms established leadership in structured products, including our market, leading senior notes offering franchise and specialization and corporate debt issuances.
To date, our team has led over $1 5 billion of corporate debt and preferred stock offerings.
In wealth management, we opened a new branch location in Washington, Virginia led by three seasoned financial advisers, who joined us from BB&T to us.
And in New York, We recently welcomed the sophisticated advisor from UBS, who is focused on serving ultra high net worth individuals.
Our ability to attract talented professionals of this caliber speaks to the value of being able to offer a unique array of services under one roof. We continue to actively recruit across all our business lines with particular focus on investment banking to support our growing capital markets business and M&A practice.
As Brian noted noted at the top of the call our strong quarter was driven by investment banking, including several significant transactions involving contributions from other b Riley divisions.
Noteworthy banking deals from the quarter include Greenwich generations, 2 billion dollar merger would support dotcom and which we served as buy side adviser.
Rumble on $575 million business combination with wide now in which we lead both our common follow on and that raised and also served as capital markets and buy side adviser.
<unk> solutions $135 million senior notes offering in which we served as lead book runner.
So Laurie and is $120 million secondary offering in which we serve as sole book runner.
And double down interactive is $113 million August IPO.
Our site group also continued its momentum contributing meaningfully to the quarter's results.
A key offering of our equity research Department, our proprietary corporate access events had helped differentiate us and our approach to bringing bringing unique small and mid cap market investment ideas to our clients and partners during the quarter, we let 50 virtual events as well as an exclusive in person conference in L. A which features 35 companies and 50 institutional.
Investors.
Looking ahead. This December we are hosting an in person Crypto conference in New York B Riley Securities has quickly established a leadership position in the emerging crypto currency arena being the first thing to bring a crypto minor public with strong whole digital mines recent IPO.
In wealth management, our legacy business B Riley wealth and our recently acquired National Holdings continue to perform steadily with revenue EBITDA and she's G based assets.
Both on a year over year and sequential basis.
Perhaps what is more gratifying. However is the dedication and skill of our coworkers are displaying as we work towards combining these businesses.
And retail liquidation.
Despite domestic headwinds. This group has managed to keep active with projects in Europe.
As we enter the holiday shopping season.
<unk> has been busy working with returning retail clients model store closings in preparation for the potential fallout from ongoing supply chain issues.
Yeah.
And then advisory services, which includes our legacy glass Ratner financial consulting group and legacy Great American appraisal Division.
Ordination of these businesses continues to bear fruit and generating referrals across our platform.
We recently added senior hires to our restructuring division valuation services practice into our risk compliance and cyber practice.
This group's focus remains on the legal and lender community and corporate compliance markets.
Quite a challenging environment for both legacy businesses.
Also found ways to be meaningful contributors to the overall B Riley enterprise.
Yeah.
Our principal investment companies Magicjack and United online continues to perform above our expectations, while providing cash flow to our platform.
We're still working to obtain necessary regulatory approval to complete the second tranche of our investment in lingo, which should enhance our results in future quarters.
Lastly, after a difficult period following the beginning of the pandemic volumes within our brand investment business have dramatically increased.
We remain optimistic about growth in this business in 2022.
And finally appointed cannot be overstated and how incredibly proud we are to represent and work alongside our colleagues.
Our co workers continue to step up in rights of the occasion, despite the challenges created by the ongoing pandemic.
Our people have shown dedication on and off the playing field both in the normal course of business as well as by participating in any number of B Riley sponsored programs. We continue to be inspired every day by the people we work with.
And echoing Brian's sentiment at the top of the call with a common goal and shared purpose is our commitment to continue to keep our eye on the ball and focused on delivering for our employees and our stakeholders.
With that we will now open the line for questions and then we'll turn the call back to Brian for closing remarks. Thanks.
Thank you we will now begin the question answer session if.
If you wish to ask a question you May press star and one on your Touchtone telephone to join the question queue.
You will hear a tone acknowledging your request.
If you were using a speaker phone please lift the handset before pressing any cheese.
To remove yourself from the question queue, you May press star and two.
If you would like to ask a question at this time, Please press star and one we will pause for a moment as callers join the queue.
Our first question comes from Keith Rosenbloom with cruiser capital.
Please proceed.
Thank you guys.
What a great quarter, and what a great reflection of the business here.
I just wanted to get.
You're welcome I wanted to try and level set here and just make sure I'm on the right page right I'm looking at the business and it seem to trade at a p/e of three.
You know raised your dividend yield so I guess, it's got a stated yield of 6%.
Looks like you know obviously with all the specials, it's it's much demonstrably higher.
Brian your own 20% of the company.
Initiated a buyback.
You look at other investment banks.
Uh huh.
They seem they all have much higher multiples and pay lower dividend yields.
You have no research coverage, there's no sell side research coverage up here and I Wonder is there. Some is there some better description of the business in terms of what you're doing.
Brian that might better describe who you are or are these discounts to your comps.
Just so blatant and so unwarranted that perhaps it confuses people.
Yeah, Keith we've we've talked about this a lot internally and it's part of why you know we've been pretty aggressive about.
Cash returns and now implementing a more meaningful annual dividend we were confusing I don't think we're confusing I you know the way that I would.
Describe us is that we are a investment banks last merchant bank that utilizes our balance sheet the great fees.
Investment opportunities and I'm going to make money for our clients and shareholders and the simplistic way to look at the business in my mind is to take the bucket of recurring EBITDA that we have.
And I include that kind of a steady state of interest income because we will always have a loan book and if you take that number you get in you get into a number of you know somewhere around $180 million to $200 million.
And then you'll have a broker dealer and you have a liquidation business that can go up and down I mean would be fooling ourselves. If we said that we're going to always be up into the right.
So the way we the way that we looked at it, especially when we're looking at our dividend as we said you know over the last three years, our broker dealer has done roughly $10 million to $11 million of monthly EBITDA.
Last year at something closer to $21 million.
In our retail down about 1 million to $3 million in the last few years per month.
And so we look at our dividend and we said you know what is our breakeven to pay for dollar dividends about its underwriting the broker dealer to 5 million a month not the 10 that we've averaged over the last three years of the 20th loss sharing and underwriting the liquidation of half a million and so we have lots of room to pay a dividend and lots of room to be cautious because markets do.
Sometimes run in cycles.
So I think you can take that dividend yield and say that provides a level of security.
And in the meantime, you know we're going to take the excess free cash flows that we would expect because we're underwriting to a very low number to make sure that we felt good about our dividend coverage.
The last trailing 12 months, our operating EBITDA was $430 million and our total ebitdas and much more than that and our free cash flow has been 592 million with investments. So we've been able to take a lot of money and invest it in the business. I think you may have seen we're adding to our fixed income practice we.
Acquisitions, we've added to our research side and so we've been able to do all of those things, but when you talk about a public company that owns a dialup business Oh, it looks like Magicjack brands liquidation and a broker dealer versus.
Sure play broker dealer they aren't going to be a lot of people. I think you know funds that are competitors of yours that are going to say I want a pure play broker dealer I don't I don't want them matched that I wont be surprised I don't know, whether that's really going to look at it as a really broad mandate and we want that broad mandate. We think that's really important. So that's why we are being pushed out a bit.
About making sure you know what we're doing and what our philosophy is and we return a lot of cash but I think that's also there's a lot of our secret sauce is we havent, Brian mandates, but I think it also creates.
At discount and in the answer to how you fix that I I don't know I mean, I think we just keep grind doesn't keep you know make it a lot of money in.
The rest will take care of itself.
Can I just got two quick follow ups in.
So you.
So Tom just talked about the crypto currency business in terms of crypto trading.
Maybe you could just give a little perspective on what that could mean to you in terms of contribution on the trading Cryptos side and then also I know you've got to put an effort into building the asset management business.
Can you speak to where you think.
That that contribution those management fees might look like in a year from now from your asset management side.
So let me, let me start with asset management side, because I think maybe hum.
We're not we're not trading crypto. We are we have been very active in raising capital for miners as you know I know you participate in some of those so that's become a bigger effort on the most important part of that is every one of those deals that we've done is meaningfully higher and we've made a lot of people a lot of money in and created a lot of capital.
For miners to build their business, but and we're having a conference to specifically for that vertical as it relates to asset management. You know if you look at our competitors. We are the only group that really does not have any meaningful asset management business and we have a retail wealth management component with over $30 billion.
And we think that you know an asset management business and you'll run by Wes Cummins, who we've known for a long time, we are very confident that he's going to put up really good numbers and we're gonna give great products to our in house.
Wealth managers, but also to other institutions. So we're making sure that Wes is it's very much institutionalized and has its own infrastructure, but we recognize that we that is a.
You know a greenfield spot for us that we can really go after I'd be disappointed if we weren't managing over $1 billion.
And you know I guess it depends on how your returns are but that can be meaningful that could be $20 million $30 million of kind of income.
Thank you.
Alright, Thanks kit.
Once again, if you would like to ask a question at this time, Please press star one.
Our next question comes from Brian Rohman with Boston Partners.
Please go ahead.
I want to repeat.
Keep comment.
Heck of a quarter.
I have a question about the dividend Ah I don't see a.
Broker dealers as yield type stocks and yet.
That's sort of how you're positioning this and the reason I don't I don't associate.
Yield and broker dealers is because.
Core investment banking business can over time be very volatile.
What sort of scenario.
Bad things have to be.
For you to think that the dividend could be.
Compromised.
Your new Devon.
I'm, so I'm going to do the math again than I did before but yeah. Yeah, you did a great job for going over that I'd like to hear that again.
So we're not a typical you know I think we're not.
Yeah, we have we are different from our competitors by having the operating businesses that we buy and whether that delay a castle business like Magicjack and United online or it's the brands we own are and if you just bucket those things and you know some of our more recurring business, we get to a kind of a.
Annual EBITDA number of in and around 140, <unk> hundred $50 million okay.
If you take our interest income because we're always going to have a loan book I mean, one of the I'm sorry.
Brian I'm, sorry to disturb interrupt you that 140, <unk> hundred $50 million, which number you just said that is everything together.
All of that is everything except for the broker dealer cars.
They are volatile businesses are too volatile businesses.
Or the broker dealer, which is obviously volatile and very strong right now right and then the liquidation business just really low you know the liquidation business two years ago was doing $30 million in EBITDA and now it's doing closer to 10 to 15 million because a lot of liquidation. These are this is a business that helps you don't when a company goes bankrupt we tell it goes bankrupt will buy the inventory.
And will take over the hours and so that business right now as you can imagine the economy, we're in as much slower, but we call those are episodic businesses, okay everything else like bucket and we looked at as more of a brokerage because that could include a business. We bought like glass Radnor, which is an hourly advisory business that is going to do $10 million to $12 million of EBITDA, we do a pre.
<unk> that business is burning currently do $10 million to $12 million. There. So if you add up that whole bucket.
Got to roughly 100 and $450 million of EBITDA Okay.
Then if you take if you take our our balance sheet, which has got about $2 $2 billion of.
Capital if you take about half a billion dollars of that that's in loans to clients to interesting opportunities. We get a lot of proprietary let's just assume that somewhere in around that number and it might be more might be less but for the purposes of this conversation that's generating roughly $50 million of interest income.
You take those two pieces and you have $200 million of EBITDA. Okay.
The broker dealer. So first we'll go with the broker dealer over the last year.
Monthly EBITDA for the broker dealer has been approximately 21 million a month.
Over the last three years looking back when you know and it's obviously been growing a lot over the last three years the broker deal EBITDA monthly as it's been about $5 million a month excuse me $10 million a month right. So 120, and then call. It 240 angle when we looked at our dividend. So it did exactly what you did and said where would we be what would have to go for.
To be more nervous about it we underwrote a monthly EBITDA in the broker dealer 5 million a month. So if it went to $5 million a month, we wouldn't be generating without the right amount of cash, but equally matched the dividend.
So 20 million now 10 million over three years, we under wrote the $5 million on the liquidation business. We did the same analysis.
The last few years is that it's 2 million a month last year, it's even a million a month, we underwrote that to about $10 million a year.
So in all end and then you know we've got a billion five investment book, we believe that we're able to put that money to work.
Our return on investment capital have been very strong.
But from a pure operating point of view those are the numbers, though that's the wiggle room, you have and we don't have it's not like we have any month.
Month to month that the vast majority of it we just we just called the two nearest term debt to us. So we don't have anything to do I think is it twenty-five filling with the vast majority of <unk> 27.
Let's say, we missed by $2 million in a month, where not something on in the world will just.
So we know where we have a good business and we have what will catch up so that that was a rough math and if we get to a spot where we feel like that number is 350, we will we will adjust I mean, I think we have a philosophy that we are part of our job as a share and the returns that we make with our shareholders and that's what we've that's that's.
One of our philosophy, and that's what you're seeing with this dividend.
Let me ask the question differently I'm I'm living in Bloomberg right. Now you have about 28 million shares outstanding 28 million shares times $4, a share is about $100 million a little bit more cash.
Cash flow that goes out the door for paying a dividend are you sort of looking and and you've been paying all these special dividends and use going forward looking at the recurring businesses as definitely covering the dividend.
And absent a large investment.
The episodic businesses.
Dusing special dividends over time.
You'll close youre not youre not quite there yet.
Yeah, but.
You're close enough to think of it that way.
Okay fine that's good.
That's helpful. Thank you.
Youre welcome.
Yeah.
The next question comes from Sean Haydon with Charles Lane capital.
Please go ahead.
Hey, guys, Oh, I'd like to say congratulations on the quarter as well and thanks for the dividend.
<unk>.
Question, the wealth management unit.
How far along are you in the integration process of National and what should we think about as far as.
You know the operating margin there that that the income margin. However, you referred to it.
Right now you're at about mid single digits do you see any lift in there with that margin going forward once everything is kind of.
Steady state no longer being integrated.
So.
I would say, let me just comment on on that transaction I would say and you you've known us for a long time and I think you would say were somewhat understated I would say you know on a scale of one to 10 the way the integration has taken place in the way of the business leaders have.
With each other as a pet and so to think that I just put in perspective. The thinking you know two months, we're doing $9 million of EBITDA at $36 million run rate.
<unk> for.
It was amazing and I think that we've had total buy and not total but a lot of buy in from the wealth managers. We've spent a lot of time with them you know.
Introducing a store products they participated in a lot of our deals and so from the perspective of revenue momentum I think we're in a I think we're in really.
Good shape is there more work to Donald do on the operating side, Yeah. I mean, that's gonna you know you've got leases you got a lot of things that you know when you have two wealth managers merger got negotiations with vendors. You've got you know that you will be able to carve out more expense savings I Couldnt tell you.
We have an EBITDA target because.
We're just our target is to be as profitable as we can at all times that they realize they're two very different businesses. The national businesses are independent management business now Youre still working with them and you are still distributing product to them and they make it part of the team, but that's a different kind of payout structure than a W. Two wealth manager when you were there you know.
100% of employees in and you're paying for it and all of their insurance and all that stuff. So so there are a little bit different so the margin you're going to get on our independent wealth management business is going to be less.
And then W. Two but there's less risk obviously, because they're paying for a lot of the things. We're doing so that's a long winded answer of saying I'm thrilled that we did $9 million I think that we're just at the start of it I think we're going to get a lot of recruits I think were really exciting place to to come to and we've got great leadership that are out there, we're creating all the time.
Can that business be a $50 million to $60 million EBITDA business sitting here I think is good.
This is a challenge to the market over and this is maybe kind of put my finger in the air and looking at where the numbers are but I could see that.
Okay. Yeah. That's helpful. Thanks, and then on brands I mean, it looks like you know that that's really.
Taking shape there do you guys have any.
Targets in mind or are you just trying to be opportunistic when it comes to the portfolio yeah, yeah, sorry. So.
One of the things that overtime that but I have found valuable as you you made a lot of great people in this business and if you can partner with people who have known or are you seeing an action may be short or long time.
That's how you can I think really leverage your business and so you will see that you know like people like Kenny Young who is the CEO of another company became our president and or you know, Brian Kahn and vintage group, we've done a ton of deals with franchise blue because we've known forever and that that much.
It goes on and on and I would say the brand side, we got to know the founders of Bluestar over a long period of time and we have we think they're amazing at what they do and we are committed to partnering with them. If they see opportunities we don't have to but we've committed and so so we are there for them as a capital.
<unk> partner and it's really up to them I would say that you were going to find more brand opportunities of periods of distress than you would in a really good economy. So you know when a lot of the apparel companies like for example, justice right brick and mortar business went bankrupt. It's an unbelievable brand is now and it's gonna be in 'twenty 'twenty 800.
Walmart plagued the the commercials of Walmart ultimately with the Justice brand. So we own 40 some percent of that that's that's our partners. So there's no. We don't have a number we want to get too we don't have a desire to buy five more we're just going to be really opportunistic.
Alright, great well again, congrats on the quarter.
Thanks, Thanks, John I appreciate all your support.
This concludes our question and answer session I'd now like to turn the call back over to Mr. Bryant Riley for his closing remarks.
Well. Thank you operator, and thanks, everyone for participating you know really exciting day being able to return the kind of capital we are to our shareholders and our partners at our firm in and being recognized by fortune as a number two growing firm.
Super Humbled and really thankful for all the people that have helped us get there. So look forward to our next quarter's call. Thank you everyone.
Yeah.
Thank you before we conclude today's call I will provide b Riley Financial's Safe Harbor statement, which includes important cautions regarding forward looking statements made during this call.
Statements made during this call about B Riley financial's future expectations plans and prospects and any other statements regarding matters that are not historical facts may constitute forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995.
Investors should be aware that any forward looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those discussed here today.
These risk factors include the unpredictable and ongoing impact of the COVID-19 pandemic as well as the other risk factors explain in detail in the company's filings with the Securities and Exchange Commission.
Please refer to these filings for a more detailed discussion of forward looking statements and the risks and uncertainties that each statements.
All forward looking statements are made as of today and except as required by law.
The company undertakes no obligation to publicly update or revise any forward looking statements, whether because of new information future events or otherwise.
Thank you for joining us today for B Riley Financial's third quarter 2021 results earnings conference call.
You may now disconnect.
[music].
Yeah.
[music].
Yeah.
Yeah.
Yeah.
Uh huh.
Okay.
Okay.
[music].
Right.
[music].
Mhm.