Q1 2022 B Riley Financial Inc Earnings Call

Good afternoon, and welcome to B Riley Financial's first quarter 2022 earnings call earlier today B Riley issued a press release and presentation detailing its financial results for the first three months of 2022 copies are available in the investors section of the company's website at IR Dot B.

Riley Finn dotcom.

As a reminder, this call is being recorded and the audio replay will be available on the company's Investor Relations website later today.

Joining us today from B Riley, our Bryant Riley Chairman and co founder and co CEO , Tom Kelleher co founder and co CEO and Philip on C. F O N C O L.

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. Please proceed.

Thanks, and welcome everyone in many ways. Our first quarter is personally is gratifying as any quarter, we have reported since going public in 2014.

And generally over 84 million in operating EBITDA in an environment in which our historically biggest profit drivers revenue were down almost 75% I am speaking of investment banking, which declined from 128 million to $34 2 million year over year in revenues.

Rates the steps we have taken over the last 10 years to insulate our overall business from a large market volatility.

Additionally, generating operating EBITDA of over $10 million on our brokerage business. Despite this large slowdown while aggressively continuing our investment in M&A and fixed income personnel illustrates the commitment we have maintained towards expense management.

Given the slowdown in capital markets and the overall decline in equity markets I thought it would make sense to reiterate our dividend and business strategy and Tom and Phil will speak more specifically to the business units later in the call.

As we have said before we group our businesses into two categories episodic and recurring episodic businesses are represented by B Riley Securities brokerage and B Riley retail solutions and can have large quarterly swings in profitability.

The remaining businesses consisting of our wealth management advisory brands asset management and communications businesses are much more predictable and recurring in nature.

These recurring businesses along with the net margin from our loan book generate enough cash flow to cover our dividend tax and interest requirements. Specifically, we estimate that the operating EBITDA was quite a couple of these items is approximately 270 million per year to the extent of its strong cash flows are more episodic businesses. We will review those cash flows that we looked at you to invest further in our <unk>.

Our return capital to shareholders incremental to our regular dividend as we did last year in which we paid $10 in special dividends.

In addition to these EBITDA generating assets, we have a diversified investment portfolio of approximately $1 3 billion that includes public and private equity in businesses, where we have deep conviction capital appreciation and we turn overtime and almost always have deep board level involvement.

The returns on these investments are subject to being valued quarterly and can be volatile.

We urge investors to take a long term view of this portfolio and there's a reason we highlight our operating EBITDA as our primary measurement of the business well.

While we saw a decline in this portfolio during the quarter, which has continued into the second quarter. We have historically generated outsized returns on our investment book and are confident that our proprietary platform will continue to enable us to generate strong results for our shareholders.

Shortly all of our investments are financed with a total cash and low covenant debt in which the vast majority of does not mature for four years.

This allows us to take a long term view on these investments and while the mark to market changes can be painful they are mitigated by our strong capital base.

We have found that we were able to create meaningful value during market declines like the one we are currently experiencing and will look to be opportunistic in our investment portfolio.

With that I will now speak to the first quarter operating revenues were $274 million, while investment losses totaled $68 million, bringing our total revenues for the quarter at 206 million op.

Operating adjusted EBITDA for the quarter was $84 2 million, while investment EBITDA loss was $43 5 million, bringing our total adjusted EBITDA for the quarter to $40 7 million.

Within our capital market segment underwriting spec issuance in sales and trading saw declines in the quarter, while strength in capital markets came from ATM offerings restructuring interest from our loan book Securities lending and a growing asset management activity.

As mentioned, we have taken efforts over the last two years to broaden out our brokerage business and align with that strategy. We've continued to diversify our revenue mix with the integration of recent acquisitions of National Holdings within wealth management and focal point securities within the institutional broker dealer.

Within our principal investments Communications segment, we continue to build out the portfolio with our pending acquisitions of Lingo management and Bull's eye Telecom Bill.

Before synergies the acquisition of Lingo, one built bullseye are expected to contribute over 250 million in revenue and 30 million in EBITDA on an annualized basis.

As I previously touched on another source of strong recurring cash flow come from a loan and receivables investment book as of quarter end, we maintain approximately $500 million of corporate loans receivables generating an average interest rate of approximately 10%.

Tomorrow, we have quite a portfolio of more on receivable from Babcock group in late 2021, which had a principal balance of approximately $380 million at quarter end and has so far performed above expectations and is generating a meaningfully higher rate of return them to the rest of the loan book.

Combined these assets are a large contributor to our operating EBITDA and we are seeing significant opportunities to continue to put capital to work at far higher rates given the lack of capital available in the equity markets.

With that I'll now turn the call over to Phil <unk>, our CFO and COO, who will provide more context on our quarterly metrics and then Tom Kelleher co CEO will discuss some highlights across our operating units over to you Phil.

Thanks, Brian .

As Bryan noted our fourth quarter results were impacted by a slowdown in the capital markets and losses incurred in the investment book due to current market conditions.

For the first quarter on a consolidated basis B Riley reported first quarter total revenues of $205 6 million down 66% from the prior year period.

Operating revenues were 274 million for the quarter or year over year decrease of 18% primarily related to lower investment banking activity.

Total adjusted EBITDA in the first quarter was $40 7 million and operating adjusted EBITDA was $84 2 million net.

Net loss available to common shareholders was $12 1 million or <unk> 43 loss per diluted share.

Now turning to our reportable segments in the first quarter.

Starting with our capital market segment, which includes operating results from investment banking institutional brokerage and fund management as well as our results from our investment portfolio.

Excluding investment losses, our capital markets segment operating revenues for the quarter totaled $130 5 million, which represents a decrease of 37% year over year.

Operating income was $57 9 million, which was down 45% year over year, primarily due to lower investment banking revenues and was partially offset by strong activity on our ATM offerings sales and trading and securities lending businesses.

Wealth management segment revenues increased 14% to $77 5 million up from $67 9 million in the prior year period.

Segment loss in the first quarter was $10 1 million driven primarily by reduced market activity combined with the impact of a settlement charge related to litigation prior to B Riley's acquisition of National Holdings in 2021.

Auction and liquidation segment revenues were $3 4 million and segment loss was 0.8 million.

Results from this segment were impacted by a slow retail liquidation environment in the first quarter compared to the prior year period.

As stated on prior calls results from this segment tend to be variable due to the episodic nature of large retail liquidation engagements.

Finish consulting segment revenues increased to $25 9 million up from $21 4 million in the prior year period.

Income increased to $4 9 million up from $3 3 million in the prior year.

Increases in this segment were driven primarily by strong results in both our financial restructuring advisory business as well as our appraisal valuation business.

Our principal investments communications companies, Magicjack, and United online and Credo Marconi contributed revenues of $32 7 million and segment income of $8 8 million.

These companies continue to provide a steady stream of cash flow as far at B Riley platform.

And lastly, our brands segment continues to make contributions to the overall B Riley platform, having generated segment revenues of $4 6 million and segment income of $3 2 million.

Note that this segment excludes the dividends and contributions from our investments in Herley Justice and BB, which are picked up in our capital market segment as well as other income.

As a reminder, adjusted EBITDA in 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 reconciliation in the financial supplement on our Investor Relations website.

Now turning to some highlights from our balance sheet.

At March 31 B.

B Riley financial had approximately $214 million in unrestricted cash and cash equivalents.

One 3 billion in net securities and other investments owned.

And 882 million of loans receivable.

At quarter end, we had total cash and investments balance of approximately $2 5 billion, which includes approximately $49 million in other investments reported in prepaid and other assets.

Net of debt B Riley financials cash and investments totaled approximately 406 million at March 31.

And finally, our board of directors has approved a regular quarterly dividend of $1 per common share.

Which will be paid on or about may 20th to common stockholders as of record on may 11th.

That completes my financial summary, now I'll turn the call over to our co CEO Tom Kelleher.

Tom.

Thanks, Phil the first quarter presented a challenging conditions for our capital markets business and investment book, given lower activity levels as well as increased market volatility.

As Brian mentioned these are headwinds faced by the entire industry, but ones that we were able to partially mitigate given our efforts to build a diversified platform complete with non correlated assets.

Can help drive performance even during difficult times.

While remaining active at looking at new opportunities the firm's strengthened our market position by continuing to build out previously announced initiatives as well as working to integrate recent acquisitions.

Highlights include the expansion of our fixed income division leadership team by adding long time industry veteran Robert Hamill, who will work alongside our head of fixed income Tim Sullivan.

The addition of G packing Mary Jo Collins also tour fixed income division, both are highly seasoned and great additions to the team and demonstrate the group's ability to attract top talent.

I'll end the group had added has added over two dozen professionals under consultants leadership.

The addition of a compliance risk and the resilience consulting practice to our advisory group. The continued integration of National Holdings with their legacy B Riley wealth Division.

Development of additional funds to be offered by 272 capital.

And the addition of focal point securities, which significantly increases our M&A private capital markets capabilities.

Now turning to some of our divisions.

Brian noted activity in investment banking decelerated during the quarter, However, ATM offerings sales and trading and securities lending businesses remained stable from the prior quarter.

In addition, our direct lending activity and loan book continues to provide a steady stream of interest income and cash flow, It's b Riley platform.

In wealth management, we continue to integrate our legacy B Riley wealth group and the recently acquired National Holdings with one goal in mind.

To create one robust wealth management platform with the ability to scale, while delivering outstanding differentiated services and investment opportunities to be rally clients.

As with any large integration there are challenges, but we believe in the growth potential of this business and its ability to meaningfully contribute to both our steady and episodic cash flow profiles.

In our auction and liquidation segment performance continued to be impacted by a historical slowdown in our retail liquidation market here in the United States.

Remember our strong client relationships continue to drive revenue despite reduced activity.

In the first quarter, we completed several store closings and in Europe , we are pursuing an increasing number of opportunities.

As we have stated before on our earnings call. The retail liquidation business is episodic in nature and will vary from quarter to quarter.

Our advisory services business, which includes our legacy glass Ratner financial consultant group and legacy Great American appraisal Division.

<unk> performed consistently and generate referral opportunities across the platform.

Ratner delivered its best quarter ever from a revenue perspective.

Overall, our financial restructuring business continues to gain market share in a difficult environment.

Looking ahead, we're excited about the future contributions on prospects for this business as operating conditions normalize.

Our principal investments business, including Magicjack and United online continues to deliver strong performance and generate healthy cash flows.

So we're making progress with the integration of our recent accretive mobile acquisition and we're expecting to close our pending acquisitions of Lingo management and Bull's eye Telecom Telecom this summer.

We expect all of these businesses to contribute meaningful cash flow over the long term.

Lastly activity in our brand investment business is accelerating and volume levels have further recovery across the enterprise brand investments delivered almost $40 million in reoccurring EBITA and will remain an important contributor of cash flow over the coming years.

Our enthusiasm for this space has only grown and we believe our brands business will continue to deliver meaningful value to our shareholders.

In closing, while the first quarter presented a number of industry wide challenges the benefits of our diversified platform and non episodic businesses has never been clear our ability to drive cash flow and provide direct returns to our shareholders remains intact and we are confident our platform will drive accelerated growth as market conditions stabilize.

In the meantime, our teams will remain focused on capturing growth opportunities as well as delivering value to our clients.

With that we will now open the line for questions and then turn the call over to Brian for closing remarks.

Thanks.

Thank you we will now begin the question and answer session. 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 are using a speaker phone. Please lift the handset before pressing any keith.

To remove yourself from the question queue you May Press Star then 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 Sean Haydon of Charles <unk> Capital. Please go ahead.

Hey, guys congrats on a good quarter in a tough environment.

Question here on <unk>.

<unk>.

And the wealth management section can you quantify the.

The settlement charge that you took there.

Yeah. So so so maybe you can get into.

More detail, but but the one the biggest one was about $4 $5 million. It was from a issue that happened a long before we bought the business. It actually before the current management team was there and so that's the rough number.

Okay.

And are we through most of that or should we expect anything else in the future.

Well. This is this the wealth management business.

You know on the national side as it is it's tough because it's a lot of brokers a lot of them are independent there was a lot of noise in that business for a number of years, which had been cleaned up I think in terms of the quality of the of the brokers under under the previous team, but there's just always going to be noise there.

And.

It's yeah, it's got a lot of benefits we are working to consolidate that those businesses. We're excited about the people that you know our remaining we're looking at all the deals to make sure that they are beneficial to both the brokers and to us, but but I couldnt tell you that everything is cleaned up there I mean, John you know.

The enterprise value of that business. When we bought it was roughly $19 million. We expected. Some continued cleanup, it's noisy but in the whole scheme of things. If we sit here two years from now I think we're gonna be really happy we made that acquisition.

Yeah.

I hear you on that and then.

Good to see you know, obviously, the dividend safe and no worries about that but any thought to giving our altair repurchasing shares kind of accelerated pace, given you know where.

Where the stock price.

Look I think you're always balancing out you know I'm, a long term benefit to the business with buying your own business versus buying another business and you have to do the math on all of those things and I think traditionally we've been pretty aggressive about.

I'm thinking through those so I would just say to you that.

I know last quarter, you saw meaningful insider buying at higher and higher levels clearly the markets sold off a bit but I think from an operating side anybody who bought internally then would say boy. We were so we're really excited about the resiliency of some of these kind of non episodic businesses in it.

Probably more excited than they were in the opportunities that we're seeing including the backpack receivable book.

Loans that were putting out you know we are putting out loans into public companies that are.

Collateralized, but not only the businesses, but also the ability to raise capital and through Atms that you know.

20% kind of Irr's I'm, not always but sometimes that helping a client. So it's a balancing act, but we feel really good about the position. We're in because you know what while you'd love to have a super robust capital markets beds, if we're able to provide value to our clients at.

Rates that they are they understand and maybe enable them not to have to sell common at what they think of distress levels and can hold off on that but in the meantime, we're we're getting good returns for our for our shareholders. That's really attractive. So that's a long way of saying, we're we're not going to be shy about actively managing our balance sheet and.

Obviously buy back shares as one of the components will look at.

Great and then.

Just another question here on a focal point.

And I understand that it's it's very recent but.

When should you expect to kind of see some contribution from that in the numbers.

Yeah, you actually saw a negative contribution this corner and often in M&A, especially one that's you know not as large as you know.

Two houlihan lokey, our evercore whatever a lot of deals close at the end of the year and so and we recognize that so they they actually lost a little bit of money in Q1, but in terms of our enthusiasm and their win rate and the things that they're saying, it's it's a pattern and you will see that benefit.

Starting in Q2, and I think really in Q3 and Q4, so that acquisition and the integration of that and kind of the meshing of the teams has just been off the charts and we've seen a lot of cross referrals already so I think Q3 Q4 more than Q2, but you're going to start to see some nice some nice revenue there.

Yes.

Got it all right guys.

Well good quarter and thanks for taking my questions.

Thanks, Sean.

Our next question comes from Anthony Perella of Punch <unk> Associates. Please go ahead.

Good afternoon, gentlemen, thanks for joining us today.

John .

First question was just on the fixed income build out as you continue to add to the team Laura if you could add a little bit of color on just kind of how you see earnings potential once the teams fully ramped up in relation to the capital markets business as a whole that'd be great.

So I would just more speak to how we're building it up and then you know trying to budget.

On the capital markets business is something that we never budgeted the upside to we've not had the broker dealer either we've always budgeted to what is our breakeven and then our incremental margins are in and around 50% and that's so it's a really difficult thing to budget I would say that we are going to we the reason that we are.

We are adding that business as we found a leader that we had a lot of success managing fixed income business for Imperial and he was at other firms of Jefferies and was always in a leadership position as a has a great reputation and you know if you look at our business. We are one of the I think one of the biggest capital more equity capital.

Markets firms, particularly in small cap out there and we had very little.

You know that business, we have baby bonds, which you know ultimately in a lot of ways resemble worked through the capital equity capital market side, but but we do direct lending we have unbelievable client relationships, we do appraisals on.

No 1000 companies, we touch a ton of other companies through our advisory business and so we think that there is a lot of business out there for us when that gets up and running and we're already seeing them being attitude. Some deals we wouldn't have been added to obviously get a little bit of volatility, which we were hopeful for when we started this it's been a pretty boring.

Fixed income environment, not a lot of distress not a lot of volatility and now all of a sudden that's changed and I think we're going to be really well positioned to that so I would what I would say the way to look at it as this will be an investing here you know I would like to say it will be profitable by the fourth quarter. We were not we did this we did this operating EBITDA number at the same time.

We can always lost money a focal point because we're just kind of got it started and we've invested in fixed income and and you know we're not making money there. So we're continuing to invest in.

I'd, just say that I think by Q4 or Q1, we will start to be profitable and will have a run a tight just like we do on the equity side and I can't give you a budget for what that looks like because it's a it's just such a variable market. It's just hard to do.

That makes sense.

Is it almost fair to characterize it too is almost a non episodic business being added to the episodic earnings stream that should be less volatile on a quarter to quarter, you quarter to quarter or year to year basis or is that the right way to think about it I don't I wouldn't stick it in the episodic bucket I mean, when you know you don't you don't control.

The revenues right you don't control issuance you don't control you know so I think that's actually going to be you know one of those businesses again, where we're just making sure we're always making money and we have high incremental margins and where they are to benefit.

When the markets are.

Uh huh.

Our enable high revenues, so I think it's more of an episodic side.

That I would put that in now now we talked about a couple of small business telecom businesses, we acquired.

And are in the process of acquiring bullseye in lingo. Those are you know slow growth by buying them for what we think there'll be ultimately three and a half four times, great free cash flow synergistic with the infrastructure. We've built on that side that I would bucket into the.

Turning side, so far we're hopeful we'll close at the end of July Phil is I think the current thinking on both of those but you know pre synergies you're talking about two businesses like should contribute $30 million.

So far you know.

On an annualized basis, lingo, which we have not closed because we havent got an approval it looks like when we get approval soon we adjust been collecting some weird alone them some money and we're getting some interest income probably about like an $8 million run rate. So that's a big pickup in the recurring side.

That you will see.

This year as we progress later and close those deals.

That's great and then just last one you mentioned I think about two dozen hires.

So far.

Any idea of kind of what percentage of the.

Kind of full scale decided how many more hires are needed to get to kind of full scale for you guys.

So I think that.

But theres a levels I think that the.

The smallest level is probably 30 or 40 people.

But it's all going to be around opportunities and you know the people that are you know look at this platform and I think if I was in fixed income and I was in a bigger shop I wouldn't look at this platform and go what are what are you know when an opportunity I've got a I got to get in and a 24 I don't know we've been around 25 years, we've got a lot of established relationships and I get it on the ground floor.

The fixed income business like that to me is really exciting so, but we'll see we'll see we're not going to go into force. The issue, we're not going to go and build out people to build out people. If you know the market is really tight and people want too much we'll wait we'll be patient, but what we've found is you know I do think it's resonating what I you know the exam.

What I was just saying I think it's resonating that we are a unique opportunity in the fixed income side and and I think the leadership there.

There's a lot of respect in the market is really.

Leading some strong people.

To come over so you know maybe I would look at the low end 30 40 on the high end you know what we're going to get we got to get profitable right. So we'll build out as we get profitable.

Okay. Thanks, that's all I had thanks for taking my questions.

I appreciate it thank you.

Once again, if you have a question. Please press Star then one.

Our next question comes from Brett Hendrickson of Nicolas. Please go ahead.

Good morning, Brian .

I think I just want to make sure I heard you right the.

The press release talked about the Hurley and the justice going into coming through as a dividend. It's all of the Hurley are poorly revenue come into the dividend or is some of that come as a royalty in the brand segment.

It all comes as a dividend. So just think of that business Brett. It's frustrating to me that we have to allocate it that way, but it's just because of we also have a valuation component of those because we own a piece of them.

So we have to get that asset evaluated every quarter.

So it gets stuck in the AR.

In the capital market side, but just think of the brand business is adding $35 million to $40 million of incremental EBITDA with no capex obviously.

That's kind of the run rate.

Sorry, how much.

$35 million to $40 million.

So if you add you know what if you add those up you have I think it was $9 million right. This quarter, that's 36 and in round and it's been growing those guys at Bluestar that management are doing a great job and they're seeing more and more opportunities on like Justice is just getting into Walmart.

So theres a lot more opportunities there.

Yeah for what it's worth I see Hurley and more places in retail and I think of you guys. Every time and now you have probably never thought of it as like hanging out in the surf shops. So I just wanted something else.

[laughter], well and we're seeing it in some non therapy places so I don't know I haven't.

I haven't changed my ways I'm, just okay got it.

But.

So anyways, the great great expense leverage and capital markets I did want to someone else was already asked.

The same question I had around the wealth management.

<unk> lawsuit, but I wanted to make sure I understood.

Phones going off I wanted to make sure that I heard you right did you say four and a half million dollars was that lawsuit was.

The exact number Phil.

Yeah, I think the well we had a reserve but the charge that we took for the quarter is roughly four for $4 1 million.

Yeah, Okay, and I know and I know you said that business I forget how you describe national maybe you said it was kind of messy, sometimes but so then does that imply wealth management lost money in the in the quarter, even excluding the lawsuit.

Missing here soon so some so.

The old wondering if business B Riley wealth management has been nicely profitable.

$502 million a month NASA.

National was going to gyrate more and I. Just so the answer is we are also a little bit of money, but I wouldn't read too much into it it's just.

It's just a little bit chunkier around events, and we haven't been able to merge the businesses. So we have effectively a two infrastructures.

That doesn't mean more.

Sure.

There's just an opportunity to save money and contracts and all of those things that we have not done yet because we havent merge those two businesses. So I would say, we lost a little bit of money, but I would tell you I wouldn't read too much into that.

And the other side of it though Brian you have to you have to also you have to understand is that.

The benefit that National also has us and sometimes it creates to other parts of the businesses.

They have been from referrals of M&A that goes in the capital markets. They have been participants in our deals that help our deals get done so theres a theres another benefit that doesn't get picked up in the line item of the sub but it's a big benefit.

Okay, Yeah, and I'm I'm aware of that that synergy and that's good and then kind of speaking of where stuff falls in your segments Bryant.

Focal point.

Does that some of that goes into financial consulting is something that goes on the capital markets or where is that revenue and EBITDA contribution going to fall.

So is that just for modeling the answer to that in terms of the breakup.

Alright, I'm, sorry can you say it again the focal point.

All of those revenues are going to be an advisory right does that is that the current is that where we're putting out I think no. They think catheter I think capital markets.

The advisory as a restructuring or.

Structuring appraisal real estate advisory operations management Advisory.

Okay.

That's good that should make our capital market's a little less episodic or maybe episodic in a different way.

Going forward.

Unless make sure we got everything I think that's it.

Thanks for your time.

Yeah, just one clarification I'm, sorry, what I was referring to we call. It advisory we lifted our financial consulting segment is what I was referring to on the restructuring side.

Yes.

Yeah, Yeah, Yeah, I knew that because that's the old glass rapkin businesses and our financial consultant is that right correct. Yeah, Yeah, and then all of a focal point won't stay in capital market.

Yes, okay, great. Thanks.

Thanks for your time, and the insight and to keep up the hard work.

Thanks, Brett.

This concludes our question and answer session I'd now like to turn the call back over to Mr. Riley for his closing remarks.

And I guess I would conclude with I can't imagine being better positioned for a highly volatile market than we are we are.

And thanks to all our members of our team across our business we are.

You know as the numbers demonstrate we obviously are going to have big gyrations on our investment book and we made almost $400 million last year in that book and you know.

This first quarter, we lost some money and obviously the markets if the markets continue to come in we'll lose some money there, but the base business is incredibly strong and I'm really excited about.

The cash flows that will be generated when we have both the base business or excuse me the recurring business and the episodic clicking at the same time, which we will and I know you don't know when thats going to happen, but it will.

And I feel really good about our balance sheet and the opportunities and look forward to reporting next quarter. Thank you everybody within B Riley and our shareholders for their support and we'll talk in 90 days. Thank you very much.

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.

<unk> within the meaning of the private Securities Litigation Reform Act of 1095 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 other risk factors are explained in detail in the company's filings with the security and Exchange Commission. Please refer to these filings for a more detailed discussion of forward looking statements and the risks and uncertainties of such 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.

For joining us for B Riley's B Riley Financial's first quarter 2022 earnings Conference call you may now disconnect.

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