B. Riley Financial, Inc. (RILY) has reported a 5,553.63 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $14.02 million, or $0.71 a share in the quarter, compared with $0.25 million, or $0.01 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $7.68 million, or $0.39 a share compared with $0.59 million or $0.04 a share, a year ago.
Revenue during the quarter surged 165.20 percent to $52.90 million from $19.95 million in the previous year period. Gross margin for the quarter expanded 13 basis points over the previous year period to 66.61 percent. Total expenses were 79.75 percent of quarterly revenues, down from 91.65 percent for the same period last year. This has led to an improvement of 1190 basis points in operating margin to 20.25 percent.
Operating income for the quarter was $10.71 million, compared with $1.66 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $15.04 million compared with $1.20 million in the prior year period. At the same time, adjusted EBITDA margin improved 2242 basis points in the quarter to 28.43 percent from 6.02 percent in the last year period.
"Our financial results for the first quarter were strong across the board, marking another highly profitable quarter for our company," said company chairman and chief executive officer, Bryant Riley. "We were pleased that the quarter's performance was driven by multiple lines of business that are uncorrelated to each other, including our Capital Markets and United Online business. We believe this performance demonstrates the attractiveness of our business model, which is strategically designed to provide us with multiple sources of recurring revenue and cash flow, as well as opportunities to generate outsized returns, particularly from our retail asset disposition business as we did in the fourth quarter of last year."
Operating cash flow remains negative
B. Riley Financial, Inc. has spent $38.86 million cash to meet operating activities during the quarter as against cash outgo of $1.04 million in the last year period.
Cash flow from investing activities was $3.12 million for the quarter as against cash outgo of $0.02 million in the last year period.
The company has spent $6.84 million cash to carry out financing activities during the quarter as against cash outgo of $2.19 million in the last year period.
Cash and cash equivalents stood at $71.54 million as on Mar. 31, 2017, up 167.08 percent or $44.75 million from $26.79 million on Mar. 31, 2016.
Working capital increases sharply
B. Riley Financial, Inc. has recorded an increase in the working capital over the last year. It stood at $77.91 million as at Mar. 31, 2017, up 54.15 percent or $27.37 million from $50.54 million on Mar. 31, 2016. Current ratio was at 2.24 as on Mar. 31, 2017, down from 4.38 on Mar. 31, 2016.
Days sales outstanding went down to 27 days for the quarter compared with 45 days for the same period last year.
At the same time, days payable outstanding went down to 9 days for the quarter from 18 for the same period last year.
Debt increases substantially
B. Riley Financial, Inc. has witnessed an increase in total debt over the last one year. It stood at $27.75 million as on Mar. 31, 2017, up 2,268.09 percent or $26.58 million from $1.17 million on Mar. 31, 2016. Long-term debt stood at $27.75 million as on Mar. 31, 2017. Total debt was 10.89 percent of total assets as on Mar. 31, 2017, compared with 0.93 percent on Mar. 31, 2016. Debt to equity ratio was at 0.17 as on Mar. 31, 2017, up from 0.01 as on Mar. 31, 2016. Interest coverage ratio improved to 13.54 for the quarter from 12.61 for the same period last year.
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