West L.A.-based financial services platform B. Riley Financial reported its third-quarter results this month, notably announcing a quarterly dividend of $1 per common share and a board-approved repurchase plan.
“Our third quarter results represent the underlying strength and continued versatility of our diversified platform despite the meaningful slowdown in capital markets,” Bryant Riley, chairman and co-chief executive of B. Riley, said in a statement. “Our ability to generate solid operating results over the past nine months has enabled us to deliver our shareholders with a third quarter dividend of $1 per share, and over $83 million in common dividends related to our performance in the current year.”
The dividend will be paid on or around Nov. 29 to stockholders of record as of Nov. 15.
The company’s total revenues clocked in at around $340 million, with the largest revenue stream coming from capital markets revenues of approximately $179 million. That income stream remained relatively flat despite lower activity in investment banking and underwriting according to B. Riley.
Capital markets revenues were followed up by wealth management revenues, which decreased to around $48 million. The company said in a statement that the revenues were primarily impacted by its strategic exit of several brokers and businesses once affiliated with national securities.
B. Riley acquired and added BullsEye Telecom to its subsidiary Lingo, a B. Riley Principal Investments portfolio company, this quarter. The move expanded B. Riley’s receivables portfolio according to Riley.
The Targus acquisition was valued at approximately $250 million on an enterprise value basis. The company designs, manufactures and sells products related to laptop storage and device accessories.
B. Riley said it endured a challenging capital markets landscape.
“The global economy is in a fragile and fractious state. While most banks are on sound footing, Russia’s invasion of Ukraine, ongoing supply chain and energy shocks, persistent inflation, and tightening monetary policy will be felt unevenly across the industry,” a 2023 banking and capital markets outlook from Deloitte stated.
It added that the escalation of geopolitical risks, deglobalization and fracturing payment systems will have implications for the flow of global money and when capital and liquidity are demanded.