XML 47 R29.htm IDEA: XBRL DOCUMENT
v3.24.1.1.u2

BUSINESS SEGMENTS | 3 Months Ended
--- | ---
Mar. 31, 2024
Segment Reporting [Abstract] |
BUSINESS SEGMENTS | BUSINESS SEGMENTS The Company’s business is classified into six reportable operating segments: the Capital Markets segment, Wealth Management segment, Auction and Liquidation segment, Financial Consulting segment, Communications segment, and Consumer Products segment. These reportable segments are all distinct businesses, each with a different marketing strategy and management structure. During the fourth quarter of 2023, management reassessed the Company's previously reported Consumer segment due to organizational changes and financial information provided to the CODM. These changes resulted in Targus’ operations being reported on a stand alone basis in the Consumer Products segment and the operations related to brand licensing that was previously reported in the Consumer segment being reported in the All Other Category that is reported with Corporate and Other. As a result of the changes discussed above in the Consumer segment, the Company has recast the financial data for the Consumer Products segment and reporting of the All Other Category for all periods presented. The following is a summary of certain financial data for each of the Company’s reportable segments:
| Three Months Ended March 31, |  |  |  |
| 2024 |  | 2023 |  |  |  |  |  |  |  |
Capital Markets segment: |  |  |  |  |  |  |  |  |  |  |
Revenues - Services and fees | $ | 60,347 |  |  | $ | 57,929 |  |  |  |  |  |  |  |  |
Trading (loss) income and fair value adjustments on loans | (30,468) |  |  | 50,296 |  |  |  |  |  |  |  |  |
Interest income - Loans and securities lending | 59,944 |  |  | 77,186 |  |  |  |  |  |  |  |  |
Total revenues | 89,823 |  |  | 185,411 |  |  |  |  |  |  |  |  |
Selling, general and administrative expenses | (53,224) |  |  | (65,711) |  |  |  |  |  |  |  |  |
Interest expense - Securities lending and loan participations sold | (35,383) |  |  | (32,424) |  |  |  |  |  |  |  |  |
Depreciation and amortization | (771) |  |  | (1,256) |  |  |  |  |  |  |  |  |
Segment income | 445 |  |  | 86,020 |  |  |  |  |  |  |  |  |
Wealth Management segment: |  |  |  |  |  |  |  |  |  |  |
Revenues - Services and fees | 51,182 |  |  | 48,542 |  |  |  |  |  |  |  |  |
Trading income and fair value adjustments on loans | 600 |  |  | 1,272 |  |  |  |  |  |  |  |  |
Total revenues | 51,782 |  |  | 49,814 |  |  |  |  |  |  |  |  |
Selling, general and administrative expenses | (49,048) |  |  | (47,322) |  |  |  |  |  |  |  |  |
Restructuring charge | — |  |  | (33) |  |  |  |  |  |  |  |  |
Depreciation and amortization | (1,055) |  |  | (1,086) |  |  |  |  |  |  |  |  |
Segment income | 1,679 |  |  | 1,373 |  |  |  |  |  |  |  |  |
Auction and Liquidation segment: |  |  |  |  |  |  |  |  |  |  |
Revenues - Services and fees | 3,560 |  |  | 5,444 |  |  |  |  |  |  |  |  |
Revenues - Sale of goods | 2,220 |  |  | 216 |  |  |  |  |  |  |  |  |
Total revenues | 5,780 |  |  | 5,660 |  |  |  |  |  |  |  |  |
Direct cost of services | (1,456) |  |  | (3,128) |  |  |  |  |  |  |  |  |
Cost of goods sold | (788) |  |  | (52) |  |  |  |  |  |  |  |  |
Selling, general and administrative expenses | (1,508) |  |  | (2,280) |  |  |  |  |  |  |  |  |
Segment income | 2,028 |  |  | 200 |  |  |  |  |  |  |  |  |
Financial Consulting segment: |  |  |  |  |  |  |  |  |  |  |
Revenues - Services and fees | 35,085 |  |  | 25,010 |  |  |  |  |  |  |  |  |
Selling, general and administrative expenses | (28,860) |  |  | (21,149) |  |  |  |  |  |  |  |  |
Depreciation and amortization | (85) |  |  | (78) |  |  |  |  |  |  |  |  |
Segment income | 6,140 |  |  | 3,783 |  |  |  |  |  |  |  |  |
Communications segment: |  |  |  |  |  |  |  |  |  |  |
Revenues - Services and fees | 81,070 |  |  | 85,052 |  |  |  |  |  |  |  |  |
Revenues - Sale of goods | 1,296 |  |  | 1,867 |  |  |  |  |  |  |  |  |
Total revenues | 82,366 |  |  | 86,919 |  |  |  |  |  |  |  |  |
Direct cost of services | (48,819) |  |  | (44,733) |  |  |  |  |  |  |  |  |
Cost of goods sold | (1,359) |  |  | (2,168) |  |  |  |  |  |  |  |  |
Selling, general and administrative expenses | (17,918) |  |  | (22,544) |  |  |  |  |  |  |  |  |
Restructuring charge | (263) |  |  | (60) |  |  |  |  |  |  |  |  |
Depreciation and amortization | (5,957) |  |  | (6,631) |  |  |  |  |  |  |  |  |
Segment income | 8,050 |  |  | 10,783 |  |  |  |  |  |  |  |  |
Consumer Products segment: |  |  |  |  |  |  |  |  |  |  |
Revenues - Sale of goods | 51,522 |  |  | 65,694 |  |  |  |  |  |  |  |  |
Cost of goods sold | (36,880) |  |  | (45,406) |  |  |  |  |  |  |  |  |
Selling, general and administrative expenses | (15,525) |  |  | (19,294) |  |  |  |  |  |  |  |  |
Depreciation and amortization | (1,997) |  |  | (2,608) |  |  |  |  |  |  |  |  |
Restructuring charge | (526) |  |  | — |  |  |  |  |  |  |  |  |
Segment loss | (3,406) |  |  | (1,614) |  |  |  |  |  |  |  |  |
Consolidated operating income from reportable segments | 14,936 |  |  | 100,545 |  |  |  |  |  |  |  |  |
All Other: |  |  |  |  |  |  |  |  |  |  |
Revenues - Services and fees | 26,059 |  |  | 13,582 |  |  |  |  |  |  |  |  |
Revenues - Sale of goods | 615 |  |  | — |  |  |  |  |  |  |  |  |
Total revenues | 26,674 |  |  | 13,582 |  |  |  |  |  |  |  |  |
Direct cost of services | (10,851) |  |  | (6,536) |  |  |  |  |  |  |  |  |
Cost of goods sold | (588) |  |  | — |  |  |  |  |  |  |  |  |
Corporate and other expenses | (33,600) |  |  | (22,668) |  |  |  |  |  |  |  |  |
Interest income | 669 |  |  | 2,574 |  |  |  |  |  |  |  |  |
Dividend income | 11,815 |  |  | 13,204 |  |  |  |  |  |  |  |  |
Realized and unrealized losses on investments | (29,545) |  |  | (28,442) |  |  |  |  |  |  |  |  |
Change in fair value of financial instruments and other | 314 |  |  | (209) |  |  |  |  |  |  |  |  |
Loss on equity investments | (4) |  |  | (10) |  |  |  |  |  |  |  |  |
Interest expense | (44,864) |  |  | (47,561) |  |  |  |  |  |  |  |  |
(Loss) income before income taxes | (65,044) |  |  | 24,479 |  |  |  |  |  |  |  |  |
Benefit from (provision for) income taxes | 17,090 |  |  | (7,919) |  |  |  |  |  |  |  |  |
Net (loss) income | (47,954) |  |  | 16,560 |  |  |  |  |  |  |  |  |
Net income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests | 1,211 |  |  | (595) |  |  |  |  |  |  |  |  |
Net (loss) income attributable to B. Riley Financial, Inc. | (49,165) |  |  | 17,155 |  |  |  |  |  |  |  |  |
Preferred stock dividends | 2,015 |  |  | 2,012 |  |  |  |  |  |  |  |  |
Net (loss) income available to common shareholders | $ | (51,180) |  |  | $ | 15,143 |  |  |  |  |  |  |  |  |
The following table presents revenues by geographical area:
| Three Months Ended March 31, |  |  |  |
| 2024 |  | 2023 |  |  |  |  |  |  |  |
Revenues |  |  |  |  |  |  |  |  |  |  |
Revenues - Services and fees |  |  |  |  |  |  |  |  |  |  |
North America | $ | 256,730 |  |  | $ | 234,930 |  |  |  |  |  |  |  |  |
Europe | 573 |  |  | 629 |  |  |  |  |  |  |  |  |
Total Revenues - Services and fees | 257,303 |  |  | 235,559 |  |  |  |  |  |  |  |  |
Trading income and fair value adjustments on loans |  |  |  |  |  |  |  |  |  |  |
North America | (29,868) |  |  | 51,568 |  |  |  |  |  |  |  |  |
Revenues - Sale of goods |  |  |  |  |  |  |  |  |  |  |
North America | 28,894 |  |  | 37,947 |  |  |  |  |  |  |  |  |
Australia | 2,624 |  |  | 3,459 |  |  |  |  |  |  |  |  |
Europe, Middle East, and Africa | 16,017 |  |  | 17,428 |  |  |  |  |  |  |  |  |
Asia | 6,354 |  |  | 6,224 |  |  |  |  |  |  |  |  |
Latin America | 1,764 |  |  | 2,719 |  |  |  |  |  |  |  |  |
Total Revenues - Sale of goods | 55,653 |  |  | 67,777 |  |  |  |  |  |  |  |  |
Revenues - Interest income - Loans and securities lending |  |  |  |  |  |  |  |  |  |  |
North America | 59,944 |  |  | 77,186 |  |  |  |  |  |  |  |  |
Total Revenues |  |  |  |  |  |  |  |  |  |  |
North America | 315,700 |  |  | 401,631 |  |  |  |  |  |  |  |  |
Australia | 2,624 |  |  | 3,459 |  |  |  |  |  |  |  |  |
Europe, Middle East, and Africa | 16,590 |  |  | 18,057 |  |  |  |  |  |  |  |  |
Asia | 6,354 |  |  | 6,224 |  |  |  |  |  |  |  |  |
Latin America | 1,764 |  |  | 2,719 |  |  |  |  |  |  |  |  |
Total Revenues | $ | 343,032 |  |  | $ | 432,090 |  |  |  |  |  |  |  |  |
The following table presents long-lived assets, which consists of property and equipment, net, by geographical area:
| March 31, 2024 |  | December 31, 2023
Long-lived Assets - Property and Equipment, net: |  |  |
North America | $ | 23,596 |  |  | $ | 24,594 |
Europe | 352 |  |  | 396 |
Asia Pacific | 125 |  |  | 133 |
Australia | 73 |  |  | 83 |
Total | $ | 24,146 |  |  | $ | 25,206 |
Segment assets are not reported to, or used by, the Company’s Chief Operating Decision Maker to allocate resources to, or assess performance of the segments and therefore, total segment assets have not been disclosed.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration