B. Riley Financial, Inc (RILY) has reported a 511 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $8.94 million, or $0.47 a share in the quarter, compared with $1.46 million, or $0.09 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $11.50 million, or $0.60 a share compared with $2.06 million or $0.13 a share, a year ago.
Revenue during the quarter surged 167.80 percent to $56.97 million from $21.27 million in the previous year period. Gross margin for the quarter contracted 223 basis points over the previous year period to 73.26 percent. Total expenses were 72.93 percent of quarterly revenues, down from 84.59 percent for the same period last year. This has led to an improvement of 1167 basis points in operating margin to 27.07 percent.
Operating income for the quarter was $15.42 million, compared with $3.28 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $20.80 million compared with $3.06 million in the prior year period. At the same time, adjusted EBITDA margin improved 2212 basis points in the quarter to 36.52 percent from 14.40 percent in the last year period.
“As we previewed in our preliminary release, we had a very profitable third quarter, driven primarily by strong results in our retail asset disposition business, as well as a recovery in our capital markets brokerage business,” said company chairman and chief executive officer, Bryant Riley. “Additionally, United Online, which we acquired in July, has performed in line with our expectations and continues to provide meaningful and consistent cash flow generation.”
Operating cash flow drops significantly
B. Riley Financial, Inc has generated cash of $27.93 million from operating activities during the nine month period, down 36.52 percent or $16.07 million, when compared with the last year period.
The company has spent $111.87 million cash to meet investing activities during the nine month period as against cash inflow of $4.89 million in the last year period
Cash flow from financing activities was $80.39 million for the nine month period as against cash outgo of $24.55 million in the last year period.
Cash and cash equivalents stood at $26.47 million as on Sep. 30, 2016, down 42.35 percent or $19.45 million from $45.92 million on Sep. 30, 2015.
Working capital drops significantly
B. Riley Financial, Inc has witnessed a decline in the working capital over the last year. It stood at $36.15 million as at Sep. 30, 2016, down 37.62 percent or $21.80 million from $57.95 million on Sep. 30, 2015. Current ratio was at 1.32 as on Sep. 30, 2016, down from 3.05 on Sep. 30, 2015.
Days sales outstanding went down to 33 days for the quarter compared with 83 days for the same period last year.
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