LOS ANGELES - B. Riley Financial, Inc. (NASDAQ: RILY), a diversified financial services company, announced preliminary unaudited financial results for the fourth quarter and full year ending December 31, 2023. The company reported a fourth-quarter net loss available to common shareholders of $70 million, or a diluted loss per share of $2.32. This compares to a net loss of $59.4 million, or a diluted loss per share of $2.08, for the same period in 2022.
Total revenues for the quarter were $347 million, down from $382 million in the fourth quarter of the previous year. Operating revenues, a non-GAAP financial measure, were $395 million, compared to $449 million in the prior year quarter. Operating adjusted EBITDA, another non-GAAP financial measure, was $79 million, a decrease from $110 million in the fourth quarter of 2022.
For the full year 2023, B. Riley Financial's total revenues increased by 52% to $1.65 billion, up from $1.08 billion in 2022. However, the company experienced a net loss of $86 million for the year, primarily driven by non-cash impairment charges of $71 million. Operating revenues for the year increased 25% to $1.63 billion, up from $1.31 billion in 2022. Operating adjusted EBITDA for the year was $368 million, down from $394 million in the previous year.
The company also announced a quarterly dividend of $0.50 per common share, payable on or about March 22, 2024, to shareholders of record as of March 11, 2024.
B. Riley Financial will file a Form 12b-25 with the SEC to notify of the late filing of its Annual Report on Form 10-K for the year ended December 31, 2023, due to delays in finalizing the company's financial statements. The delay is attributed to time and resources spent reviewing transactions with Brian Kahn. The company does not anticipate significant changes to the disclosed financial results.
Additionally, B. Riley has engaged Moelis (NYSE:MC) & Company to review strategic alternatives for its appraisal and asset disposition businesses, formerly known as Great American Group. There is no certainty that this review will result in a transaction.
The company's capital markets segment saw a 75% increase in revenues to $575 million in 2023, up from $328 million in 2022, with segment income increasing 143% to $198 million. The wealth management business returned to profitability, and the auction and liquidation segment reported a 39% increase in revenues to $103 million. The financial consulting segment grew 36% to $134 million in revenues, and the communications segment increased 43% to $338 million, primarily due to acquisitions.
These financial results are based on a press release statement from B. Riley Financial, Inc.
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