B Riley Financial Inc (RILY) 2022 Q4 法說會逐字稿

Good afternoon, and welcome to B. Riley Financial's Fourth Quarter and Full Year 2022 Earnings Call. My name is Brit, and I will be your call coordinator. B. Riley has issued a press release and financial supplement detailing its results for the fourth quarter of 2022, which can be found on its Investor Relations website at ir.brileyfin.com.

下午好，歡迎參加 B. Riley Financial 2022 年第四季及全年財報電話會議。我叫 Brit，將擔任您的電話會議協調員。 B. Riley 已發布新聞稿和財務補充文件，詳細介紹其 2022 年第四季度的業績，詳情請訪問其投資者關係網站 ir.brileyfin.com。

Today's call includes prepared remarks from the company followed by a question-and-answer session. Joining us today from B. Riley are Bryant Riley, Chairman, Co-Founder and Co-CEO; Tom Kelleher, Co-Founder and Co-CEO; and Phillip Ahn, CFO and COO. After management's remarks, we will open the line for questions. (Operator Instructions)

今天的電話會議包括公司事先準備好的演講稿，以及問答環節。今天，B. Riley 的嘉賓包括董事長、聯合創始人兼聯合首席執行官 Bryant Riley、聯合創始人兼聯合首席執行官 Tom Kelleher 以及首席財務官兼首席營運官 Phillip Ahn。管理階層發言結束後，我們將開放提問環節。 （接線生指示）

As a reminder, this call is being recorded. An audio replay will be available on the company's Investor Relations website later today. And before we conclude today's call, I will provide the necessary cautions regarding forward-looking statements.

提醒一下，本次電話會議正在錄音。錄音重播將於今天稍晚在公司投資者關係網站上提供。在結束今天的電話會議之前，我將就前瞻性陳述提供必要的警告。

Now I will turn the call over to Mr. Bryant Riley. Mr. Riley, you may proceed.

現在我將把電話轉給布萊恩特·萊利先生。萊利先生，您可以繼續了。

Welcome, and thanks for joining our call this afternoon. Throughout 2022, we continue to execute our strategy amid a tough environment with markets taking back the investment gains we saw in 2021, contributing to a net loss of $168 million for the year. Despite the marks in our investment portfolio, we delivered operating revenues of $1.3 billion in 2022, which is close to where we were at the end of 2021 during the record year that produced operating revenues of $1.4 billion.

歡迎，感謝您今天下午參加我們的電話會議。 2022年全年，我們將繼續在艱難的市場環境下執行我們的策略，市場回吐了我們在2021年獲得的投資收益，導致全年淨虧損1.68億美元。儘管我們的投資組合表現不佳，但我們在2022年實現了13億美元的營業收入，這與2021年底創紀錄的14億美元營業收入的水平接近。

It is important to put this into perspective. The income and losses over the last 2 years were largely influenced by our investment portfolio. And over the course of 2021 and 2022, our investment book is effectively flat. During that period, we made approximately $10 per basic share and generated operating EBITDA of over $780 million.

正確看待這一點至關重要。過去兩年的損益很大程度上受我們投資組合的影響。在2021年和2022年期間，我們的投資帳面實際上持平。在此期間，我們每股基本獲利約10美元，營運息稅折舊攤提前利潤（EBITDA）超過7.8億美元。

Additionally, during that time, we continue to diversify our business and implement a strategy we began 5 years ago, which is to invest our excess episodic cash flows into recurring operating businesses that will generate strong cash flows even when our episodic businesses are slow. Our operating performance in 2022 highlights the benefits of this strategy.

此外，在此期間，我們將繼續推動業務多元化，並實施五年前啟動的一項策略，即將過剩的偶發性現金流投資於經常性營運業務，即使在偶發性業務成長緩慢的情況下，這些業務也能產生強勁的現金流。我們2022年的營運表現凸顯了這項策略的優勢。

To highlight this point further, consider that our investment banking and institutional brokerage business represented roughly 60% of our operating EBITDA in 2021 versus about 10% in 2022. During that same period, overall operating EBITDA declined by less than 20%.

為了進一步強調這一點，請考慮我們的投資銀行和機構經紀業務在 2021 年占我們經營 EBITDA 的約 60%，而 2022 年約佔 10%。在同一時期，整體營運 EBITDA 下降了不到 20%。

Since our inception as a sub-$50 million market cap publicly traded company in 2014, we have delivered in excess of $21 per share or over $570 million in common stock dividends to our shareholders. We have had meaningfully up and down years, and through all cycles, our diversified platform has demonstrated strength and resiliency to yield meaningful returns for our business and our shareholders, including in previous down market cycles.

自2014年成立以來，我們作為一家市值低於5000萬美元的上市公司，已為股東帶來了每股超過21美元的股息，或超過5.7億美元的普通股股息。我們經歷了起伏不定的歲月，在所有市場週期中，我們多元化的平台都展現出強大的實力和韌性，為我們的業務和股東帶來了豐厚的回報，即使在以往的市場低迷時期也是如此。

We (inaudible) and will continue to be opportunistic. As I mentioned, we made several strategic acquisitions this past year to bolster our platform with additional uncorrelated sources of steady revenue and to enhance capabilities where we see opportunities for longer-term growth. These additions include Targus, which has already contributed meaningful growth in our results; BullsEye Telecom and Lingo, which have enhanced the cash flows generated by our Communications segment; and FocalPoint, which has expanded our M&A, debt and restructuring advisory capabilities as part of B. Riley Securities.

我們（聽不清楚）並將繼續保持機會。正如我所提到的，我們去年進行了多項策略性收購，旨在透過新增不相關的穩定收入來源來增強我們的平台，並增強我們認為具有長期成長潛力的能力。這些新增收購包括Targus，它已經為我們的業績貢獻了顯著的成長；BullsEye Telecom和Lingo，它們增強了我們通訊部門的現金流；以及FocalPoint，它作為B. Riley Securities的一部分，增強了我們的併購、債務和重組諮詢能力。

In addition, we added to our receivables portfolio. This has been a great investment that continues to perform with double-digit rates of return. Since our unlevered purchase of the first portfolio for $400 million, and as of yesterday, we have recovered approximately $395 million of cash and have an incremental $154 million of current receivables.

此外，我們也增加了應收帳款組合。這是一項非常出色的投資，持續保持著兩位數的回報率。自從我們以4億美元無槓桿收購第一個組合以來，截至昨天，我們已收回約3.95億美元現金，並新增1.54億美元的當期應收帳款。

We typically recover (inaudible) of our receivables per month. The second portfolio that we purchased in partnership with Pathlight Capital is performing in line with our expectations, and we expect to have an IRR in excess of [40].

我們通常每月回收應收帳款（聽不清楚）。我們與Pathlight Capital合作購買的第二個投資組合表現符合我們的預期，我們預期內部報酬率將超過[40]。

Speaking to our corporate loan portfolio, at year-end, we had 12 loans with a total sales value of $384 million. This excludes our Badcock loan receivable portfolio and a few loans under $1 million of fair value. Approximately 95% of our loan portfolio at fair value was represented by secured loans.

說到我們的企業貸款組合，截至年底，我們共有12筆貸款，總銷售額為3.84億美元。這不包括我們的Badcock應收貸款組合和幾筆公允價值低於100萬美元的貸款。我們以公允價值計算的貸款組合中約95%為擔保貸款。

As a general view, we believe that our loan portfolio, which is almost entirely fair valued by an outside valuation firm, provides a very attractive risk-adjusted returns potential for us over the course of the year. We have received a number of calls on this portfolio, so I will outline a few highlights of our loan portfolio activity for 2022 and including activity thus far for 2023.

總體而言，我們認為，我們的貸款組合（幾乎全部由外部估值公司進行公允估值）將為我們在今年帶來極具吸引力的風險調整後回報潛力。我們已收到多起關於該組合的諮詢電話，因此我將概述我們2022年貸款組合活動的一些亮點，並包括2023年迄今為止的活動。

We received a total paydown by Sorrento of their $41 million loan. We received a $50 million paydown of our Cadiz loan. We received an $11 million paydown of our Excel loan. The last loan I will update is our Core Scientific loan. We provided Core with a $42 million loan against future equity sales, which now is an unsecured claim in the bankruptcy. We also provided a $70 million dip of which $35 million has been funded in order to have a greater seat at the table during the bankruptcy.

Sorrento 已償還我們全部 4,100 萬美元的貸款。 Cadiz 貸款已償還 5000 萬美元。 Excel 貸款已償還 1,100 萬美元。我要更新的最後一筆貸款是 Core Scientific 貸款。我們向 Core 提供了一筆 4,200 萬美元的貸款，用於抵押未來的股權出售，這筆貸款目前在破產程序中屬於無擔保債權。我們還提供了一筆 7000 萬美元的補充資金，其中 3500 萬美元已到位，以便在破產程序中獲得更大的話語權。

At the time, our $42 million loan was marked to less than $8 million, which is reflected in our 2022 results. And since that time, Bitcoin has risen from $16,500 to $24,000, and power costs consisting of mostly natural gas has declined meaningfully. We will continue to utilize our balance sheet to facilitate opportunities for our clients and provide strong returns for our constituents.

當時，我們4,200萬美元的貸款被標記為不到800萬美元，這反映在我們2022年的表現中。從那時起，比特幣的價格從16,500美元上漲到2,4000美元，以天然氣為主的電力成本也大幅下降。我們將繼續利用我們的資產負債表，為客戶提供更多機會，並為我們的客戶帶來豐厚的回報。

In summary, we like where we sit heading into 2023 from an earnings power, liquidity and opportunity perspective. And we will continue to keep our heads down to perform for our colleagues, our clients, our partners and our shareholders.

總而言之，從獲利能力、流動性和機會的角度來看，我們對2023年的現狀充滿信心。我們將繼續全力以赴，為我們的同事、客戶、合作夥伴和股東服務。

With that, I'll turn the call over to Phil Ahn, our CFO and COO, to discuss key financial metrics for the quarter. Then Tom Kelleher, our Co-CEO, will discuss results from our business segments before we open up for questions. Over to you, Phil.

接下來，我將把電話會議交給我們的財務長兼營運長 Phil Ahn，討論本季的關鍵財務指標。然後，我們的聯合執行長 Tom Kelleher 將討論我們各業務部門的業績，之後我們將開始提問。接下來，Phil，請您發言。

Thanks, Bryant. For the fourth quarter ending December 31, 2022, B. Riley reported total revenues of $327 million, down from $422 million in Q4 2021. Net loss available to common shareholders was $59 million or $2.08 diluted loss per share compared to net income of $62 million or $2.08 diluted earnings per share in the prior year period. This loss primarily reflects investment losses of $124 million, representing mark-to-market declines in our investment portfolio.

謝謝，布萊恩特。截至2022年12月31日的第四季度，B. Riley報告總收入為3.27億美元，低於2021年第四季的4.22億美元。普通股股東應佔淨虧損為5,900萬美元，即每股攤薄虧損2.08美元，去年同期淨利為6,200萬美元，即每股攤薄收益2.08美元。該損失主要反映了1.24億美元的投資損失，這代表了我們投資組合以市價計算的下跌。

Excluding the marks on our investments, operating revenues increased to $450 million for the quarter, up from $353 million in Q4 of 2021. Operating adjusted EBITDA of $102 million compared to $106 million in the prior year period.

不計入我們的投資收益，本季營業收入從 2021 年第四季的 3.53 億美元增至 4.5 億美元。營業調整後 EBITDA 為 1.02 億美元，去年同期為 1.06 億美元。

For the full year ended December 31, 2022, total revenues were $915 million, down from $1.7 billion from the prior year. Net loss available to common shareholders of $168 million or $5.95 diluted loss per share compared to net income of $438 million or $15.09 diluted earnings per share in 2021.

截至2022年12月31日的全年總收入為9.15億美元，低於上年的17億美元。普通股股東應佔淨虧損為1.68億美元，即每股攤薄虧損5.95美元，而2021年的淨利為4.38億美元，即每股攤薄收益15.09美元。

Investment loss of $404 million for the year compared to investment gains of $387 million in 2021. Again, the loss was primarily due to the impact of the broad market declines throughout 2022, and its related impact on expense that we hold.

本年度投資損失為 4.04 億美元，而 2021 年的投資收益為 3.87 億美元。同樣，損失主要是由於 2022 年全年大盤下跌的影響及其對我們持有的費用的相關影響。

Operating revenues for the year were $1.3 billion, which was relatively flat compared to 2021 despite softness in small cap markets and a decrease in investment banking and underwriting fees throughout 2022. Operating adjusted EBITDA was $366 million, down from $422 million for the prior year period.

全年營業收入為 13 億美元，儘管 2022 年小型股市場疲軟且投資銀行和承銷費用下降，但與 2021 年相比基本持平。營業調整後 EBITDA 為 3.66 億美元，低於去年同期的 4.22 億美元。

As a reminder, adjusted EBITDA and our metrics for operating and investment results are non-GAAP financial measures. Please refer to our earnings release for a definition of these terms and for a reconciliation to the nearest GAAP measures. Investors can also find additional details relating to these metrics and related reconciliations in the financial supplement on our Investor Relations website.

提醒一下，調整後EBITDA以及我們衡量營運和投資績效的指標均為非GAAP財務指標。請參閱我們的收益報告，以了解這些術語的定義以及與最接近的GAAP指標的對帳表。投資者也可在我們投資者關係網站的財務補充資料中找到有關這些指標及相關對帳表的更多詳細資訊。

Now turning to highlights from our balance sheet. As of December 31, we had $269 million in unrestricted cash and cash equivalents, $1.1 billion in net securities and other investments owned and $702 million in loans receivables. Of this total, loans on nonaccrual accounted for approximately $7 million of our total fair value. At year-end, we had a total cash and investment balance of approximately $2.1 billion, which includes approximately $54 million of other investments reported in prepaid and other assets.

現在來看看我們資產負債表的亮點。截至12月31日，我們擁有2.69億美元的非限制性現金及現金等價物，11億美元的淨證券及其他自有投資，以及7.02億美元的應收貸款。其中，非應計貸款約占我們總公允價值的700萬美元。截至年底，我們的現金及投資餘額約為21億美元，其中包括預付款項及其他資產中報告的約5,400萬美元的其他投資。

Total debt as of December 31 was approximately $2.4 billion. This includes $1.7 billion of senior notes, approximately $700 million of senior loans and $25 million in notes payable at year-end. We remain in compliance with all of our debt covenants and specifically with regards to our Nomura debt facility covenants, the net asset value related to our primary guarantor was in excess of $2 billion at year-end.

截至12月31日，總債務約24億美元。其中包括17億美元的優先票據、約7億美元的優先貸款以及2,500萬美元的年末應付票據。我們持續遵守所有債務契約，特別是與野村證券債務融資契約相關的契約。截至年末，與我們主要擔保人相關的淨資產價值超過20億美元。

As a result of recent additions to our platform, we have realigned our segment reporting structure to reflect organizational changes at B. Riley. The new Consumer segment includes our previously reported Brands segment, which historically represented licensing revenues from our 6 Brands portfolio, and Targus, which we acquired in the fourth quarter of 2022. The Consumer segment also includes revenues from our equity investments in Hurley and Justice brands, which were previously reported in the Capital Markets segment.

由於近期平台新增內容，我們重新調整了分部報告架構，以反映 B. Riley 的組織架構變更。新的消費者分部涵蓋了我們先前報告的品牌分部（該分部過去代表我們 6 個品牌組合的授權收入）以及我們於 2022 年第四季度收購的 Targus。消費者分部還包括我們對 Hurley 和 Justice 品牌的股權投資收入，這些收入之前均在資本市場分部報告。

We have also realigned our previously reported Principal Investments Communications and Other segment into 2 separate segments: a Communications segment and an All Other segment. The Communications segment includes our legacy United Online and magicJack businesses in addition to Marconi Wireless, Lingo and BullsEye Telecom. The All Other segment consists of opportunistic acquisitions and sectors unrelated to the above described segments.

我們也將先前報告的「主要投資通訊及其他」部門重新調整為兩個獨立的部門：通訊部門和所有其他部門。通訊部門包括我們原有的 United Online 和 magicJack 業務，以及 Marconi Wireless、Lingo 和 BullsEye Telecom。所有其他部門則包括機會性收購以及與上述部門無關的行業。

And finally, our regular quarterly dividend of $1 per share will be paid on or about March 23 to common stockholders of record as of March 10.

最後，我們將於 3 月 23 日左右向 3 月 10 日登記在冊的普通股股東支付每股 1 美元的常規季度股息。

That completes my financial summary, and now I'll turn the call over to our Co-CEO, Tom Kelleher, to provide highlights from our business divisions. Tom?

我的財務摘要就到此結束，現在我將把電話轉給我們的聯席執行長湯姆‧凱萊赫 (Tom Kelleher)，讓他介紹我們各業務部門的亮點。湯姆？

Thanks, Phil. Over the past year, we helped clients navigate challenging markets to raise capital in a liquidity restrained environment and execute on their strategic business initiatives. At the same time, we continue to grow our platform while making enhancements to strengthen our position long term, both organically and through acquisitions.

謝謝，菲爾。過去一年，我們幫助客戶在充滿挑戰的市場中，在流動性受限的環境下籌集資金，並執行他們的策略性業務計劃。同時，我們持續發展平台，並透過內部成長和收購等方式進行改進，以鞏固我們的長期地位。

Excluding investments, our Capital Markets segment generated operating revenues of $542 million with segment operating income of $232 million for the year, reflecting lower levels of investment banking and underwriting activity. Our securities lending business continues to demonstrate resiliency amid a softer capital markets environment. After a challenging year, we realized a meaningful improvement in our Capital Markets business during the fourth quarter that has us optimistic for 2023.

不包括投資，我們的資本市場部門本年度營業收入為5.42億美元，營業利潤為2.32億美元，反映出投資銀行和承銷業務的下降。在資本市場環境疲軟的背景下，我們的證券借貸業務持續展現韌性。在經歷了充滿挑戰的一年後，我們的資本市場業務在第四季度取得了顯著改善，這讓我們對2023年充滿信心。

Underwriting, ATM and banking advisory activities within B. Riley Securities all increased sequentially compared to Q3 with notable deals completed during the quarter, including a $75 million equity follow-on for AST SpaceMobile, $125 million combined debt and equity raise for Harrow Health, a $119 million follow-on offering for Lilium, along with several notable sell-side transactions, including the sale of Perricone Juices as well as the sale of a (inaudible) brand to [PNG].

B. Riley Securities 的承銷、ATM 和銀行諮詢活動與第三季度相比均有所增長，本季完成了多項重要交易，包括對 AST SpaceMobile 進行 7500 萬美元的股權後續發行、對 Harrow Health 進行 1.25 億美元的債務和股權聯合融資、對 Lilium 進行 1.19 億美元的後續交易(聽不清楚) 品牌。

While many issuers have opted to wait for a more accommodating market environment, we are proud to have been nimble and aggressive in helping clients opportunistically seize windows to raise capital as evidenced by our role as sole bookrunning manager in Bed Bath & Beyond's public equity raise earlier in the month.

雖然許多發行人選擇等待更寬鬆的市場環境，但我們很自豪能夠靈活而積極地幫助客戶抓住機會籌集資金，正如我們在本月早些時候擔任 Bed Bath & Beyond 公開股權融資的唯一賬簿管理人所證明的那樣。

In our B. Riley Asset Management business, 272 Capital has maintained its performance as a top equity long short fund worldwide while adding assets and growing our institutional base. Assets under management for the business increased substantially year-over-year to $330 million as of December 31, 2022.

在我們的 B. Riley 資產管理業務中，272 Capital 保持了其作為全球頂級股票多空基金的業績，同時增加了資產規模並擴大了我們的機構基礎。截至 2022 年 12 月 31 日，該業務的資產管理規模年增至 3.3 億美元。

Turning to Wealth Management. Revenues for this segment totaled $234 million for the year, down from $382 million in 2021. The year-over-year decrease is primarily related to our strategic realignment of this division following our acquisition of National in the first quarter of 2021 as well as reduced client activity due to the market headwinds through 2022.

財富管理業務方面，該部門全年收入總計 2.34 億美元，低於 2021 年的 3.82 億美元。年比下降主要源自於我們在 2021 年第一季收購 National 後對該部門進行的策略調整，以及 2022 年市場逆風導致的客戶活動減少。

As part of our realignment in this business, we exited a significant amount of producing registered representatives to give us the balance we sought for the business. And today, more than half of our wealth revenues are on a reoccurring basis.

作為我們業務重組的一部分，我們退出了大量的註冊代表，以實現我們追求的業務平衡。如今，我們超過一半的財富收入都是經常性收入。

As fixed costs for this division continues to trend down, we expect to realize additional annual savings as vendor contracts roll off in the coming years. As we look ahead, we continue to invest in growing this business organically and recruiting quality advisers to our platform. Assets under management were more than $23 billion at December 31.

隨著該部門的固定成本持續下降，我們預計未來幾年隨著供應商合約的到期，年度成本將進一步節省。展望未來，我們將繼續投資於該業務的有機成長，並招募優質顧問加入我們的平台。截至12月31日，其管理資產超過230億美元。

In our Financial Consulting segment, revenues totaled $99 million for the year with segment income of $16 million for the year related to B. Riley Advisory Services and B. Riley Real Estate. During 2022, we achieved record appraisal revenue levels, expanded our forensic and litigation services division and realized year-over-year revenue growth of [44%] in our Real Estate division, which we established in 2020.

在我們的財務諮詢部門，本年度總收入為 9,900 萬美元，其中 B. Riley 諮詢服務和 B. Riley 房地產部門本年度的收入為 1,600 萬美元。 2022 年，我們的評估收入創歷史新高，法務和訴訟服務部門規模擴大，2020 年成立的房地產部門收入年增 [44%]。

This segment continues to steadily perform as a source of stable revenues and profits to our platform, and we continue to explore opportunities to grow this division. To that end, earlier today, we announced our acquisition of the Corporate division of Farber Group, which is a Toronto-based restructuring and business advisory firm that our legacy GlassRatner team has collaborated with on cross-border engagements for over 15 years. This acquisition has 45 professionals and enhances our suite of advisory services.

該部門持續穩健發展，是我們平台穩定收入和利潤的來源，我們也將繼續探索發展該部門的機會。為此，今天早些時候，我們宣布收購Farber集團的企業部門。 Farber集團是一家總部位於多倫多的重組和商業顧問公司，我們原有的GlassRatner團隊已與其在跨國業務方面合作超過15年。此次收購擁有45名專業人員，將增強我們的諮詢服務體系。

In addition to restructuring and turnaround management, Farber brings specialized expertise in human capital consulting, interim management and executive search services. This added capability supports our role when we are appointed as interim CEO, CFO or CRO for clients navigating a restructuring and in-sourcing executive talent for our clients, whether for growth or distressed situations.

除了重組和重振管理之外，Farber 還擁有人力資本諮詢、臨時管理和高階主管搜尋服務方面的專業知識。當我們被客戶任命為臨時執行長、財務長或首席風險長時，這些額外的能力將支持我們進行重組工作，並為客戶內部招募高階主管人才，無論客戶是處於成長期還是困境中。

This addition also extends our appraisal, valuation, litigation and forensic services to Farber's clients and provides the foundation with which to expand our capabilities in Canada. We look forward to growing our collective foothold across the North American market together.

此次收購也拓展了我們為Farber客戶提供的評估、估價、訴訟和法務服務，並為拓展我們在加拿大的業務奠定了基礎。我們期待攜手在北美市場共同發展。

In addition, we have established a new field examination practice to complement services we provide to lenders, private equity firms and company borrowers. Our field exam practice strengthens our in-house capabilities and offers incremental value to our clients as a service that can be performed in conjunction with an appraisal for a more streamlined process in valuing collateral. This new practice is led by a veteran valuation expert, who joined us at the end of last year. We are really excited about the opportunity to grow this vertical within our Appraisal division.

此外，我們還設立了新的現場審查業務，以補充我們為貸款機構、私募股權公司和公司借款人提供的服務。我們的現場審查業務增強了我們的內部能力，並為客戶提供增值服務。此服務可與評估結合使用，從而簡化抵押品評估流程。這項新業務由一位資深評估專家領導，他於去年底加入我們。我們非常高興有機會在評估部門內拓展這一垂直領域。

In our Auction and Liquidation segment, revenues increased to $74 million for the year driven by an increase in retail liquidation assignments with legacy and repeat clients in the U.S. during the quarter and two large European projects, which added sizable profits in December. Rising interest rates, rising labor rates and past supply chain disruptions are all adding to retail distress and disruptions. As financial pressure continues to mount for retailers, we are starting to see positive momentum for liquidations and are optimistic about the distressed retail market going into 2023.

在我們的拍賣和清算部門​​，本年度收入增長至7,400萬美元，這得益於本季度美國老客戶和回頭客的零售清算業務增加，以及兩個大型歐洲項目在12月帶來了可觀的利潤。利率上升、勞動成本上漲以及過去供應鏈中斷都加劇了零售業的困境和混亂。隨著零售商的財務壓力持續增加，我們開始看到清算業務的積極勢頭，並對2023年陷入困境的零售市場持樂觀態度。

Turning to our Communications segment with recent enhancements. Our Communications segment revenues increased over 150% to $236 million for the year and generated segment income of $30 million in 2022. In 2021, this segment primarily consists of United Online and magicJack, which we acquired in 2016 and 2018, respectively. Since then, we have added Marconi Wireless in the fourth quarter of 2021, completed the acquisition of Lingo in the second quarter of 2022 and acquired BullsEye Telecom in the third quarter of 2022.

談談我們近期有所改進的通訊部門。我們的通訊部門全年營收成長超過150%，達到2.36億美元，並在2022年創造了3,000萬美元的部門利潤。 2021年，該部門主要由United Online和magicJack組成，這兩家公司我們分別於2016年和2018年收購。此後，我們在2021年第四季收購了Marconi Wireless，在2022年第二季完成了對Lingo的收購，並在2022年第三季收購了BullsEye Telecom。

We acquired all of these companies on a cost basis, in line with our investment thesis and stated strategy to maximize cash flows to our platform. Importantly, each of these businesses continue to perform ahead of our investment ROI goal to generate cash flow for the firm.

我們以成本價收購了所有這些公司，這符合我們的投資理念和既定策略，旨在最大化我們平台的現金流。重要的是，這些業務的業績持續超越我們的投資報酬率目標，為公司創造了現金流。

Finally, our Consumer segment revenues increased to $171 million with segment income of $96 million for the year. The significant increase was primarily due to acquisition of Targus in the fourth quarter of 2022. This segment also includes our investment in the Hurley and Justice brands and dividend income received from those investments, which totaled $28 million for the year as well as revenues related to the licensing of trademarks for our 6 brands portfolio.

最後，我們的消費者部門收入增加至1.71億美元，全年部門利潤為9,600萬美元。這一大幅成長主要得益於2022年第四季收購Targus。該部門還包括我們對Hurley和Justice品牌的投資以及這些投資產生的股息收入（全年總計2800萬美元），以及與我們6個品牌組合的商標授權相關的收入。

We have a world-class team of colleagues across B. Riley, who have the industry credentials and awards to rival the best in their fields. The dedication and support of teams continues to be paramount to both our and our clients' collective success.

B. Riley 擁有一支世界級的團隊，團隊成員均擁有業界資格和獎項，足以媲美各自領域的佼佼者。團隊的奉獻和支持始終對我們和客戶的共同成功至關重要。

We appreciate integration is a big lift and requires flexibility from all our teams, both new and old. And our colleagues continue to bring complete focus and dedication. Our people are the most valuable asset we have, and we are humbled by the high caliber of professionals who represent B. Riley brand in the market every day.

我們深知整合至關重要，需要所有新舊團隊成員的靈活應變。我們的同事將繼續保持高度專注和奉獻精神。員工是我們最寶貴的資產，我們為每天在市場上代表 B. Riley 品牌的優秀專業人士感到由衷的敬佩。

With that, we will now open the line for questions and then turn it back over to Bryant for closing remarks. Thanks.

好了，我們現在開始提問，然後請布萊恩特做最後發言。謝謝。

(Operator Instructions) Our first question comes from Sean at Charles Lane Capital.

（操作員指示）我們的第一個問題來自 Charles Lane Capital 的 Sean。

Congratulations on the quarter and thanks for finding a better dial-in this quarter. That was a pleasant surprised.

恭喜本季取得的成績，也感謝您在本季找到了更好的撥號方式。這真是個驚喜。

Quick question on Farber. It seems like you guys have been building out capabilities for the past couple of years. But this one you're expanding geographically. Can you just kind of discuss your vision there and if that's something you're claiming of pursuing going forward?

關於Farber的快速提問。過去幾年，你們似乎一直在提升自身能力。但這次，你們正在拓展地域範圍。能否簡單談談你們在這方面的願景，以及你們是否計劃繼續追求這個目標？

Sure. Sean, it's Bryant. So we're -- there's two ways to kind of look through acquisitions. There's strategic, and there's opportunistic. And so Farber was an opportunistic acquisition of a group of people that Ian Ratner, who runs that business is known for a long time, he actually happens to be from Canada but was very familiar with that group. And we found an opportunity to acquire them and add on not only capabilities but also geographical opportunities.

當然。肖恩，我是布萊恩特。所以我們——有兩種方式來檢視收購。一種是策略性的，一種是機會主義的。所以，收購Farber是一個機會主義的收購，收購對像是一群人，而這家公司的負責人伊恩·拉特納（Ian Ratner）早已為人所知，他恰好來自加拿大，但對這個群體非常熟悉。我們發現了一個收購他們的機會，不僅可以增強我們的能力，還可以增加地理上的機會。

And so I don't know that we weren't looking to be into Canada. We weren't looking to go to a certain region. I think it was a great fit for them. They saw the benefits that GlassRatner got. I mean, when GlassRatner joined our firm, I think their ability to price went up meaningfully, the jobs that they did from referrals went up meaningfully, and that was part of the sales pitch to Farber.

所以我不知道我們是不是沒想過要進軍加拿大市場。我們也沒想過只去某個地區。我覺得這對他們來說非常合適。他們看到了GlassRatner帶來的益處。我的意思是，GlassRatner加入我們公司後，他們的定價能力顯著提升，他們透過客戶推薦完成的工作量也顯著增加，而這正是我們向Farber推銷產品的一部分。

So we're really excited. I think that's a (inaudible). It's -- they're as excited to be here as we're excited to have them. It wasn't an acquisition that we ran and chased and had a bake off. It was just a really good fit. We'll take those opportunities as they come.

所以我們真的非常興奮。我覺得這是一種（聽不清楚）。他們和我們一樣，都很高興能加入。這不是我們為了爭奪而進行的收購，也不是我們精心策劃的。這真的是一個非常適合的選擇。我們會抓住這些機會。

Great. I mean, just on that note, like does it come with any kind of like expediting of entry into Canadian market for your other businesses? Or is this just kind of separate from all that?

太好了。話說回來，這是否會加速你們其他業務進入加拿大市場？還是說這跟其他業務無關？

I don't know, TK, do you have any thoughts on that? I would say that we have been mostly domestic and to the extent -- if we're able to utilize those relationships, whether it's capital markets or lending or whatever.

我不知道，TK，你對此有什麼看法？我想說的是，我們主要在國內市場，而且在某種程度上——如果我們能夠利用這些關係，無論是資本市場、貸款或其他什麼。

But I will tell you, that's not why we did it. We did it because of the people that are coming. So I wouldn't suggest that we said, boy, this -- if we cross-sell our products in Canada, it would be a multiplier effect, although we absolutely will try. I don't know, Tom, anything you would add?

但我告訴你，這不是我們這麼做的原因。我們這麼做是因為有越來越多的人來。所以我不會建議我們說，‘天哪，如果我們在加拿大交叉銷售我們的產品，那將會產生乘數效應’，儘管我們絕對會嘗試。湯姆，你還有什麼要補充的嗎？

Yes, I would just add, it's an opportunity. So the base business, the front accounting and shareholder litigation support restructuring, that's right up Ian's alley. But there's a executive search piece, there's some wealth management, some M&A expertise. So again, not a reason why we acquired it. But yes, it gives us all the opportunity to scale from what they've already put together.

是的，我只想補充一點，這是一個機會。基礎業務，例如前端會計和股東訴訟支持重組，這些都正合Ian的胃口。此外，他們還涉及高階主管搜尋、財富管理和併購方面的專業知識。所以，這並非我們收購它的原因。但它確實讓我們有機會在現有業務的基礎上進一步擴大規模。

Got it. Okay. That makes sense. And then I know you've done this in the past, but could you just remind us the recurring EBITDA and kind of where that settles for the year?

明白了。好的。這很有道理。我知道你以前也這樣做過，但你能提醒我們一下經常性EBITDA（息稅折舊攤提前利潤）以及它在今年的結算情況嗎？

Sure. So I'll be super specific on the overall numbers then I can get into weeds a bit. But -- so for 2022, as we define recurring, it was about $325 million of operating EBITDA. And to put that in perspective, we need about $310 million to pay everything, including our dividend and overhead and everything.

當然。所以我會非常詳細地講一下總體數字，然後再細說。但是－2022年，依照我們定義的經常性收入，我們的營運EBITDA約為3.25億美元。換個角度來看，我們需要大約3.1億美元來支付所有費用，包括股息、管理費用等等。

So to be able to pay for all of our -- all of that with our recurring EBITDA and have two other businesses that can generate outsized returns, I feel like that puts us in a really good place. When I look out to 2023, we had a big benefit from Badcock receivables in 2022 that we have to replace some. And -- but we didn't get the benefit of a full year of Targus, and we didn't have the benefit of a full year of Lingo and BullsEye, which kind of makes up for those other -- for that Badcock receivable side.

所以，我們能夠用經常性EBITDA支付所有這些費用，同時還能擁有另外兩家能夠產生巨額回報的公司，我覺得這讓我們處於非常有利的地位。展望2023年，我們在2022年從Badcock應收帳款中獲得了巨大的收益，現在我們必須彌補其中的一部分。而且——但我們沒有獲得Targus全年的收益，也沒有Lingo和BullsEye全年的收益，這在某種程度上彌補了Badcock應收帳款方面的損失。

So I would say when I look at my kind of run rate estimate of recurring and my upside estimate, my run rate is somewhere in the low 300s and my upside's in the high 300s. So I think we're doing well. And all those businesses -- none of those businesses require a lot of CapEx. They are cash flow generative.

所以我想說，當我查看我的經常性營運成本估算和上行預期時，我的營運成本在300美元出頭，上行預期在300美元出頭。所以我認為我們做得很好。所有這些業務—這些業務都不需要大量的資本支出。它們都能產生現金流。

So I really like where we're sitting. And if capital markets comes back or if liquidation comes back, I mean, you've seen that -- you've been a shareholder for a while. You can see how those -- those are both thing at the same time how powerful it can be.

所以我真的很喜歡我們現在的處境。如果資本市場復甦，或清算再次出現，我的意思是，你已經見證了——你已經成為股東一段時間了。你可以看到，這些因素——它們同時存在——其威力有多強大。

Our next question comes from Paul at Punch & Associates.

我們的下一個問題來自 Punch & Associates 的 Paul。

A couple of questions for you. First, on the loan book, and I appreciate you guys tackling things head on here. And given the attention this attracted, could you spend a little more time just talking about the underwriting process with the loan portfolio specifically and how you think about rates as well as how the loan book can fit with the rest of the business strategically?

我有幾個問題想問您。首先是關於貸款帳簿，我很感謝你們直面問題。鑑於這個問題引起了大家的關注，您能否花點時間具體談談貸款組合的承保流程，以及您對利率的看法，以及如何在策略上將貸款帳簿與其他業務相協調？

Sure. So in general, for us to provide a loan, we have to think of it as enhancing our relationship, whether it's a corporate relationship where we can create incremental opportunities to create fees or we own part of the equity or whatever. And so that -- those opportunities caught us pretty fast.

當然。所以總的來說，對我們來說，提供貸款必須將其視為增進我們關係的途徑，無論是企業關係，我們可以創造增量機會來賺取費用，還是我們擁有部分股權等等。所以——這些機會很快就抓住了我們。

We have 5 people, I think you may have met -- maybe you haven't, but we have 5 people in our Principal Investment Group that do a deeper underwriting. We have -- we often will bring in people from GlassRatner, people on Badcock receivables piece of our business.

我們有五個人，我想你可能見過——也可能沒見過——但我們的本金投資集團（Principal Investment Group）有五個人負責更深入的承保。我們經常會從GlassRatner和Badcock應收帳款業務部門引進一些人員。

We get -- that is run by a guy who has receivable expertise for years and years. On the restructuring side, we've got Perry Mandarino who runs our restructuring business, we'll dive in, and it's diving into core. And we have a risk management team. And so there's an investment group that works through all of those opportunities and tries to figure out the right rate and size.

我們明白－這由一位在應收帳款領域擁有多年專業知識的人負責。在重組方面，我們有佩里·曼達裡諾（Perry Mandarino）負責重組業務，我們會深入研究，並且是深入核心業務。我們還有一個風險管理團隊。因此，還有一個投資小組負責研究所有這些機會，並努力找出合適的利率和規模。

And typically, when we're doing something, we are a bridge. So we are going to be somebody that you're going to want to replace if you can. So for example, a great example of that would be Harrow, where we helped that company make an acquisition. That stock after that acquisition went from 11 to 16 because I think people saw the merit of it.

通常，當我們做某事時，我們就像一座橋樑。所以，如果可以的話，你會想要找人來取代我們。例如，Harrow 就是一個很好的例子，我們幫助該公司完成了一項收購。收購之後，該公司的股價從第 11 位飆升至第 16 位，因為我認為人們看到了它的價值。

They -- when they needed $120 million to do that, we provided them a combination of equity, of debt that became baby bonds and senior secured. And so that package, which I think we're uniquely positioned to do, not only because of our wealth management group but also because we're willing to take a merchant banking approach, created that opportunity for them, we own a chunk of the equity, which we did really well on.

當他們需要1.2億美元來實現這一目標時，我們為他們提供了股權、債務（後來發展成為嬰兒債券和優先擔保債券）的組合。因此，我認為我們擁有獨特的優勢，這不僅因為我們擁有財富管理團隊，也因為我們願意採取商業銀行的方式，為他們創造了機會。我們擁有大量股權，並且在這方面做得非常好。

We own right now $70 million of senior secured paper, which sits on top of a $600 million market cap that is at a high rate, and I think they will probably replace that by the end of March. And we own $10 million of baby bonds. And so -- and for all of that, the fee opportunity there was great, and the client was super happy.

我們目前持有價值7,000萬美元的優先擔保債券，市值高達6億美元，而且利率很高，我認為他們可能會在3月底前完成替換。我們也持有價值1000萬美元的嬰兒債券。所以——儘管如此，收費機會還是很大的，客戶也非常滿意。

And if we can put all of those pieces together, that's -- I think that differentiates us in a meaningful way. So that's a general theme. If we're going to have our troubles, I think it's going to be something that really catches us -- something super dramatic, I would call for pretty dramatic.

如果我們能把所有這些因素綜合起來，那麼——我認為這就以一種有意義的方式讓我們與眾不同。所以這是一個總體主題。如果我們要面對麻煩，我認為那將是一件真正讓我們措手不及的事情——一件超級戲劇性的事情，我稱之為相當戲劇性的事情。

I mean, the commodity that Core serves went from 45,000 to 16,000 pretty quickly. I mean, we did -- we wouldn't put on a loan kind of commodity not hedge it a bit. So I think the face number you're seeing on the loan was offset a little.

我的意思是，Core 服務的商品數量很快就從 4.5 萬跌到了 1.6 萬。我的意思是，我們不會把貸款類商品放在對沖的地方。所以我認為你看到的貸款面值有點偏差。

But yes, that one, we're going to get -- I don't think you can do as -- put as much money to work as we do and not get caught once in a while, but I think we're going to work out of that situation a lot better than I thought before. So anything -- how else can I address that, Paul?

不過，是的，那件事，我們會——我不認為你能做到——像我們這樣投入那麼多資金，還能偶爾不被抓到，但我認為我們會比我之前想像的更好地擺脫這種情況。所以，保羅，我還能怎麼解決這個問題呢？

No, that's perfect. I appreciate you riffing on that a bit. And like I said, I appreciate you guys tackling it head on in the prepared remarks. That's good.

不，太好了。我很感謝你對此的即興發揮。就像我說的，我很感謝你們在準備好的發言中直面這個問題。很好。

On Wealth Management, can you just spend a little more time talking about what, I guess, the amount of time you think it will take to get that business to the level of profitability that you were thinking about initially?

關於財富管理，您能否多花一點時間談談，您認為需要多長時間才能使該業務達到您最初考慮的盈利水平？

So I think if I were to grade myself over the last 5 years on being right around what businesses and whether we're positioned, I'd give myself a pretty good grade. This one, I have not done great. I think I've felt like we were going to get more profitable quicker.

所以，如果要我給自己過去五年在業務和市場定位上的正確性評分，我會給自己一個相當不錯的分數。但這一次，我做得不太好。我感覺我們本來應該可以更快地獲利。

We made a decision in that business to shrink it, really dedicate ourselves, our service, our capital to what we thought were the highest and most productive wealth managers. And I think we're super close. I think I said that to you last year.

我們決定縮減這項業務，真正專注於我們自己、我們的服務和資本，致力於我們認為最優秀、最有效率的財富管理。我認為我們已經非常接近了。我記得我去年就跟你們說過。

Obviously, they do rely on some syndicates. Syndicate was off. But I think if you look at this year, I think we'll be profitable. When I look at my recurring piece of that business, and I've always bucketed them recurring, I probably shouldn't. It's not big enough to think too much about, but I've got something that's all the way from negative 2 to positive 10.

顯然，他們確實依賴一些辛迪加。辛迪加業務不太景氣。但我認為，如果放眼今年，我們還是會獲利的。當我看到我這部分經常性業務時，我一直以來都把它們歸類為經常性業務，所以可能不應該這麼做。這部分業務規模不大，不用考慮太多，但我的獲利情況從負2到正10不等。

But I think we're there. I think we are at a spot where we are very close to profitable without any incremental syndicate business. So -- and I think the quality and the partnership we have with the Wealth Management Group that's with us is a lot better. Smaller but a lot better. TK -- Tom, anything you want to add there?

但我認為我們已經達到了這個目標。我認為我們目前處於一個非常接近盈利的階段，無需任何增量的銀團業務。所以——我認為我們與財富管理集團的品質和合作關係要好得多。規模雖小，但品質好得多。 TK－湯姆，你還有什麼要補充的嗎？

No. I guess I would just say, look, it's been a tremendous amount of work. You've got two large groups of people that do things -- the same thing completely different. So just managing and working through all the operational headaches that come with combining companies is substantively behind us.

不。我只想說，你看，這真是一項巨大的工作。我們有兩大團隊，做著完全不同的同一件事。所以，管理和處理公司合併帶來的所有營運難題，基本上已經過去了。

That was a big part of last year and the year before. So it just -- it takes time. As Bryant mentioned, really excited where we sit because that's basically behind us. And rather than looking in the rearview mirror, now we can look forward and really try to figure out how to grow and scale and build the business as opposed to merging them.

那是去年和前年很重要的一部分。所以這只是——需要時間。正如布萊恩特所說，我們真的很高興現在能做到，因為那基本上已經過去了。與其回顧過去，不如展望未來，真正嘗試如何發展、擴大規模、打造業務，而不是合併。

Okay. Perfect. On Targus, could you just spend a little bit time on how that's getting integrated? And how they're managing through -- I believe most of their companies or clients are corporate. So just kind of how they're managing through this choppy labor environment.

好的。太好了。關於Targus，您能否花點時間談談它是如何整合的？以及他們是如何應對的——我相信他們的大多數公司或客戶都是企業。所以，他們是如何應對這種動盪的勞動力環境的。

Yes. So the beauty of Targus, and just bear with me if I can give you a little background because I think it's relevant. I had worked with Mikel Williams, who is the CEO of DDI. I don't know if you remember that public company, printed circuit board. And I had actually become -- was an activist. I became the Chairman.

是的。 Targus 真是太棒了！請容許我介紹一下背景，因為我覺得這很重要。我曾與 DDI 的執行長 Mikel Williams 共事。我不知道您是否還記得那家上市公司，從事印刷電路板業務。我當時實際上已經成為一名激進主義者，並擔任了董事長。

And Mikel was literally -- I mean I think he was just an amazing CEO. We ended up selling that business for a big number. I asked him to join the Board because I thought he was incredibly smart, and I thought he would be incredibly helpful.

Mikel 真的…我的意思是，我認為他是一位非常出色的 CEO。我們最終以高價出售了那家公司。我邀請他加入董事會，是因為我覺得他很聰明，而且會非常有幫助。

So he joined the Board. And during the probably 7 years he was on the Board, he did -- we sold one public company, and then he was at Targus. And he turned Targus from what was an overleveraged bankrupt company to a business that have recapped dividends out to the shareholders and had no debt and was generating $50 million, mid-$50 million in EBITDA.

於是他加入了董事會。在他擔任董事會成員的大概7年時間裡，我們賣掉了一家上市公司，然後他加入了Targus。他把Targus從一家過度槓桿化的破產公司，變成了一家能夠向股東分紅、沒有債務、EBITDA達到5000萬到5000萬美元的企業。

And so I had said to him as when you want -- often your best investments or people you invest with before I said, if you ever want to roll your equity in that business, we'd love to hear about that because it kind of fits us. It's a low CapEx, high cash flow business and with a great operator.

所以之前我跟他說，如果你想把股權轉到那家公司，我們很樂意聽取，因為這挺適合我們。這家公司資本支出低，現金流高，營運也很出色。

So that happened. That business last year to mid-50s EBITDA but had freight costs that were punishable as much as like $15 million, $20 million. So I think when we underwrote that business, we assume that the business would be off 20%, 25%, but the freight savings would offset that.

事情就是這樣。去年這項業務的EBITDA達到了50%左右，但運費成本卻高達1500萬到2000萬美元。所以我認為，當我們承保這項業務時，我們假設業務會下降20%到25%，但運費的節省可以抵消這項損失。

And so we underwrote it to in between $50 million and $60 million. If I were a betting man right now, I'd say it'd be closer to the $50 million than the $60 million. We definitely -- there's -- the channels are full.

所以，我們把承銷額定在5000萬到6000萬美元之間。如果我現在是個賭徒，我會說這個數字更接近5000萬美元，而不是6000萬美元。我們肯定…渠道已經爆滿。

But we're in it for not a month or 2 months, and we think we have a great operator. We're going to look at other opportunities to have add-on products. And we think it's a great platform, and the integration is easy. I mean, we've got a guy that we have a ton of respect for, that's been running it himself, reporting himself, themselves as a company.

但我們投入的時間不長，而且我們認為我們有一個很棒的營運團隊。我們會尋找其他機會來開發附加產品。我們認為這是一個很棒的平台，而且整合起來很容易。我的意思是，我們有一個非常尊重的人，他親自運營，親自匯報，就像一家公司一樣。

So that's part of the integration. We don't -- that was an opportunistic purchase that we will only try and enhance in any way we can, but we'll rely on the current management team.

所以這是整合的一部分。我們不會——那是一次機會主義的收購，我們會盡力改進，但我們會依賴現有的管理團隊。

Okay. Great. And just pulling on that thread a little bit. Where are you looking to allocate capital either strategically? I guess it's harder to predict the opportunistic ones. But where do you want to put your incremental dollars in 2023?

好的。太好了。稍微延續一下這個思路。您打算如何策略性地配置資本？我認為機會型投資更難預測。但是，2023年，您希望將新增資金投向哪裡？

So I mean, not the -- at the risk of being controversial, we think that bridge loans to public companies where we can utilize whether it's our relationships on the institutional side, our ability to provide different types of loans, whether it's asset-backed or otherwise our -- one of the smartest things we did is we sold a lot of baby bonds at yields of 5.5% and 6%.

所以我的意思是，儘管存在爭議的風險，但我們認為，向上市公司提供過橋貸款，我們可以利用我們在機構方面的關係，我們提供不同類型貸款的能力，無論是資產支持貸款還是其他貸款——我們做的最明智的事情之一是，我們以 5.5% 和 6% 的收益率出售了大量嬰兒債券。

And our job is obviously to pay those back, which we will. But in the meantime, we've got a 4-year runway of a very low cost of capital. So if we can -- when I look at it right now, if we can utilize our balance sheet to make some really interesting investments, get mid-teens type of returns and also enhance that with maybe a bigger mandate, whether it's sell side or whatever, those opportunities are pretty prime. The -- it's tied out there if you're a public company looking for money quickly, and we think we can be helpful.

我們的工作顯然是償還這些債務，我們一定會這麼做。但同時，我們擁有4年非常低的資本成本。所以，如果我們能夠——就我目前的情況來看，如果我們能夠利用我們的資產負債表進行一些真正有價值的投資，獲得中等水平的回報，並且可能通過更大的授權來提升回報，無論是賣方還是其他方式，這些機會都是相當不錯的。如果你是一家上市公司，正在尋求快速融資，那麼這些機會就在那裡，我們認為我們可以提供幫助。

Our next question comes from Thompson at (inaudible) Economics.

我們的下一個問題來自（聽不清楚）經濟學的湯普森。

A lot of my questions have been answered. I saw the net debt for the quarter as net of cash investments went negative. Any target you guys are looking for there? Where do you want to be?

我的許多問題都得到了解答。我看到本季扣除現金投資後的淨債務為負。你們有什麼目標嗎？你們希望達到什麼水準？

Well, I mean, we want to have net cash, but what are we accepting of? Look, if I were to sit here and say, we paid out $580 million to our shareholders. We've also -- I don't know what we bought back in stock. I mean those dividends, we also bought back another -- I don't have a number, but a meaningful number.

嗯，我的意思是，我們想要有淨現金，但我們接受的是什麼呢？你看，如果我坐在這裡說，我們向股東支付了5.8億美元。我們也——我不知道我們回購了多少股票。我的意思是，除了股息，我們還回購了其他一些——我沒有一個確切的數字，但這是一個有意義的數字。

We've -- and we've had some pretty tough marks. I mean, this was a tough year for everybody in the small-cap world, and we are less than 1x levered. And that's a pretty good spot. Like I feel really good about that.

我們——而且我們經歷了一些相當艱難的時期。我的意思是，對於小型股市場的所有公司來說，今年都是艱難的一年，而我們的槓桿率不到1倍。這是一個相當不錯的水平。我對此感覺非常好。

And so I don't know. I mean, I don't -- I think we could be 2.5, 3x levered. I don't think we're going to get there because I think our business is going to earn itself out of that. And I think our portfolio is at a kind of at a discount.

所以我不知道。我的意思是，我不認為——我認為我們的槓桿率可能是2.5倍到3倍。我不認為我們會達到那個水平，因為我認為我們的業務會從中獲利。而且我認為我們的投資組合處於某種折價狀態。

But I think a business like ours has got a meaningful piece of recurring that doesn't have a lot of CapEx and working capital needs associated. I don't think they can lever up some more, but we just have to be cognizant that we've got some volatile businesses.

但我認為像我們這樣的企業，擁有相當可觀的經常性收入，而且不需要太多的資本支出和營運資本。我認為他們不可能再加大槓桿，但我們必須意識到，我們有一些業務波動較大。

If you look at the B. Riley Securities business in the last 3 years, you had operating EBITDA of 138, 264 and 27. I mean, that's a -- that is what it is. I'm really pleased we made money. A lot of people grew during 2021 and lifted their overhead, and we were pretty careful. But that's a tough thing to manage, and we always manage for the downside. And when I do those numbers and when I do that 1x leverage, that's managing for the downside in the brokerage business, and that business can turn meaningfully.

如果你看看B. Riley證券過去三年的業務，你會發現它們的營業息稅折舊攤銷前利潤（EBITDA）分別為1.38億美元、2.64億美元和2.7億美元。我的意思是，這就是它的真實情況。我很高興我們獲利了。很多人在2021年實現了成長，並提高了管理費用，我們對此非常謹慎。但這很難管理，我們總是設法應對不利因素。當我計算這些數字，當我使用1倍槓桿時，這就是在管理經紀業務的不利因素，而這項業務最終可能會實現顯著的轉變。

And if it does, I think we're really well positioned. I mean, the markets open up in November, sub $1 billion nonhealth care deals. I think -- I don't know how many there were, but we did 5 and the next person did 2. And all of those are up, and I think there were opportunistic deals.

如果真的如此，我認為我們確實處於有利地位。我的意思是，市場在11月開放，會有低於10億美元的非醫療交易。我想——我不知道具體有多少，但我們做了5個，下一個做了2個。所有這些交易都在上漲，我認為其中有一些機會性交易。

So I like our balance sheet. I like -- I don't sweat our net debt. We could have more, but we're going to be really -- we're going to be cautious. And again, Tom, just realize that of our debt that comes due, over $1.2 billion doesn't come due to the end of '26 and going into '28. So we've got a long runway to make a lot of money on those spreads. So we feel like we're in a pretty good position.

所以我喜歡我們的資產負債表。我不太擔心我們的淨債務。我們可能會有更多，但我們會非常謹慎。湯姆，再說一次，我們要知道，在我們到期的債務中，超過12億美元不會在2026年底到2028年到期。所以我們還有很長的路要走，可以從這些利差中賺取巨額利潤。所以我們覺得我們目前處於相當不錯的位置。

Great. Yes, super helpful. And then looking at the loans receivable for the end of the year, $700 million. Can you just break down a little bit, you or Phil, break down a little bit, kind of what's in there. We've got Badcock, and we got Babcock. Can you kind of get through those? And then any other big ones?

太好了。是的，非常有幫助。然後看看年底的應收貸款，7億美元。您或菲爾能不能稍微分解一下，看看裡面具體是什麼。我們有巴德科克和巴布科克的貸款。能大致介紹一下嗎？還有其他大額貸款嗎？

So Phil, I think you break it up between Badcock and -- and I think there's some notable ones that are out there. Some of our loans are related to -- we'll provide margin services for customers with large share amount. It's kind of all over the place. So obviously, I wouldn't mention those people by name. But we have loans all over. And the average loan is $32 million. Is it $32 million? Is that what we said, Phil?

菲爾，我想你把Badcock和一些值得注意的機構分開來看。我們的一些貸款與…有關—我們會為持有大額股票的客戶提供保證金服務。這類服務很廣泛。所以，顯然我不會點名提及這些人。但我們的貸款業務遍布各地。平均每筆貸款是3200萬美元。是3200萬美元嗎？菲爾，我們是這樣說的嗎？

Yes. Excluding Badcock, average fair value per name is roughly $32 million.

是的。除去巴德科克，每個名字的平均公允價值約為3200萬美元。

Across 13 names. And the duration of those should be less than a year. They should be 3 to 6 months. Our goal is to provide a bridge loan and help a client out and let them get to a more -- a lender that's going to be longer term, doesn't have the same kind of capital returns that we would require. But we're helping them get a deal done.

涉及13個公司。貸款期限應該少於一年，應該是3到6個月。我們的目標是提供過橋貸款，幫助客戶擺脫困境，讓他們找到更長期的貸款機構，雖然貸款期限可能更長，但其資本回報率可能不如我們要求的那麼高。但我們正在幫助他們達成交易。

Okay. Great. And then in that total cash investments, the private equity, about $394 million. Any color there? What's in there?

好的。太好了。那麼，在總現金投資中，私募股權投資大約有3.94億美元。具體數字是什麼？

I don't know, Phil, do you want to walk through that a little bit?

我不知道，菲爾，你想稍微解釋一下嗎？

Sorry. Let me just probably pull through a couple of things here.

抱歉。我先簡單說幾件事。

I'll give you a few examples. We have a VC portfolio that we brought on a VC team 3 years ago. We utilized that group to find proprietary investments for our Wealth Management Group. Average investment in that is probably $7 million.

我給你舉幾個例子。我們三年前引進了一個創投團隊，負責管理一個創投組合。我們利用這個團隊為我們的財富管理集團尋找自營投資。平均投資額大概在700萬美元左右。

The average banking fee associated with those has been probably 10% of the invested capital, and we utilize that to enhance our banking fees. We have opportunistically purchased a few energy assets that we saw and we were uniquely positioned for that have done okay. And so that's part of that. We have our -- is our brands in that private equity side, Phil?

與此相關的平均銀行費用大概佔投資資本的10%，我們利用這筆費用來提高銀行費用。我們抓住機會，買了一些我們看好的能源資產，而且我們擁有獨特的優勢，這些資產表現還不錯。這就是其中的一部分。菲爾，我們的品牌在私募股權領域嗎？

(inaudible).

（聽不清楚）。

Okay.

好的。

That were (inaudible).

那是（聽不清楚）。

Our next question comes from Keith at Cruiser Capital Advisors.

我們的下一個問題來自 Cruiser Capital Advisors 的 Keith。

Bryant, could you elaborate a little bit on the operating earnings that you've guided to the nonepisodic operating earnings. Does that -- I think you said $324 million? Does that include a full year of Targus? Or is Targus additive to that?

布萊恩特，您能否詳細說明您預測的非偶發性營運利潤。您說的是3.24億美元嗎？這包括Targus全年的表現嗎？還是說Targus只是附加在業績上了？

Targus contributed about, this is rough, $11 million for the year. We acquired that in mid-October. Maybe 12.

Targus 的貢獻大概是，今年大概是 1,100 萬美元。我們是在十月中旬收購的。大概是 1200 萬美元。

So if we were to run rate that for next year, it would be...

因此，如果我們要以明年的利率計算，那將是…

What I would say is I don't think we're going to find -- so we've freed up a lot at $400 million over the course of 14 months on Badcock. And as I mentioned in the call, we still have $157 million receivables.

我想說的是，我認為我們不會找到——所以我們在14個月的時間裡，在Badcock計畫上釋放了4億美元，這筆錢確實不少。而且正如我在電話會議上提到的，我們仍然有1.57億美元的應收帳款。

We think that -- it says double. We think that return will be -- IRRs will be 25% to 30%. That money is being put back to work in other opportunities. I don't think it's going to be put back to work at the kind of -- those kind of IRRs.

我們認為——它說的是雙倍。我們認為回報率－內部報酬率（IRR）將在25%到30%之間。這筆錢會被重新投入其他項目。我不認為它會以那種——那種內部報酬率——投入到專案中。

So the contribution for Badcock, it comes in a bit to offset maybe some of that Targus. But the Lingo -- and the Lingo and the BullsEye kind of the small telecom business that we have, they only contributed in 2022 $9 million -- $10 million Lingo and BullsEye, which is an acquisition we made together. And I have them contributing closer to 25 in 2023.

所以，Badcock 的貢獻可能可以抵消 Targus 的部分貢獻。但我們旗下的 Lingo 和 BullsEye 這類小型電信業務，在 2022 年只貢獻了 900 萬美元，Lingo 和 BullsEye 是我們共同收購的，貢獻了 1000 萬美元。而到 2023 年，他們的貢獻將接近 2,500 萬美元。

So they didn't contribute for the whole year either. So there's definitely -- the run rate is higher than the 2022 average, I would just say, Badcock would be the most meaningful detractor.

所以他們全年也沒有貢獻。所以，毫無疑問——他們的得分率高於2022年的平均水平，我只想說，巴德科克是最顯著的負面因素。

Okay. So the -- okay. And then on the Babcock & Wilcox receivables themselves, one of the...

好的。那麼——好的。然後關於Babcock & Wilcox應收帳款本身，其中之一…

This is Badcock Furniture.

這是 Badcock 家具。

I understand. But I'm talking about the receivables to Babcock & Wilcox, sorry, just clarifying. One of the elements of the short report was questioning the caliber or quality of those receivables for the loan. And what has been the overall, I guess, default rate? How would you categorize the quality of the loan?

我明白。但我指的是Babcock & Wilcox的應收帳款，抱歉，只是澄清一下。簡短報告的內容之一是質疑這些貸款應收帳款的品質。請問整體違約率是多少？您如何分割貸款品質？

So I think we're mixing two things. I think the criticism was on our backstopping of LCs for Babcock & Wilcox. We backstopped for a relatively low rate, about $100 million of LCs. That Babcock, we're a big shareholder, and we're a partner of theirs.

所以我認為我們混淆了兩件事。我認為批評是針對我們為Babcock & Wilcox提供的信用證擔保。我們擔保的信用狀利率相對較低，約1億美元。對於Babcock，我們是他們的大股東，也是他們的合作夥伴。

We didn't put up any of the money. We just backstopped it. So there was a question of why we did that for a low rate. Babcock & Wilcox has not walked away from an LC in 20-plus years. Their business was -- took off as COVID started to clear up, and they just needed help in financing LCs. I view that as noncontroversial and 0 risk.

我們一分錢都沒出，只是提供了擔保。所以有人質疑我們為什麼能以這麼低的利率融資。 Babcock & Wilcox 20多年來從未放棄信用證融資。他們的業務在新冠疫情逐漸好轉後開始起飛，他們只是需要信用證融資方面的幫助。我認為這毫無爭議，而且風險為零。

Badcock is the receivable package that we bought for 400, where the underwriting of that -- so you understand is that we bought 500 -- we bought those at 75 cents on the dollar. So we bought roughly 500. And I'm doing this all from memory, but somewhere around $530 million of receivables.

Badcock 是我們以 400 美元的價格購買的應收帳款包，而它的承銷商——也就是我們以 75 美分的價格購買了 500 份。所以我們大約買了 500 份。這些都是我憑記憶算的，但應收帳款總額大約在 5.3 億美元左右。

Obviously, there's an interest rate associated with the receivables. There's insurance associated with the receivables. And so charge-offs are a meaningful portion. It is a customer that is a FICO score customer, but that's how it's priced.

顯然，應收帳款有相關的利率，也有相關的保險。因此，沖銷是很重要的一環。 FICO評分客戶是客戶，但這就是定價的方式。

And so the net-net of that, which I think is the most important part because you can -- the write-ups are somewhat irrelevant is that we invested $400 million. We have gotten back $396 million. We have $156 million of receivables that are in good standing, and we've written off a rough $95 million of receivables, which we think will recover 5% to 10%.

所以，我認為最重要的部分是，淨值是我們投資了4億美元，因為你可以——增值部分可能不太重要——我們已經收回了3.96億美元。我們有1.56億美元的應收帳款狀況良好，並且我們已經註銷了大約9500萬美元的應收帳款，我們認為這些應收帳款將收回5%到10%。

So if you mix all of that up, you get a total return on IRRs of 25% to 30%. Of that $156 million that we still have, we'll probably recover 65% to 70%, and we'll recover 5% to 10% a year of the charge-offs. So it's been a great investment. I mean, we got -- we start -- we get our money back every month.

所以，如果把所有這些加起來，你的內部報酬率（IRR）總回報率可以達到25%到30%。我們目前持有的1.56億美元中，大概能收回65%到70%，每年還能收回5%到10%的沖銷款項。所以這是一項很棒的投資。我的意思是，我們每個月都能回本。

We get every -- like our initial receivables every month, we get 8% to 9% back. So when we started with $520 million in that first month, we got back $40 million. So it's been a great place during a very difficult market to have an unlevered portfolio that's generating a bunch of cash for us.

我們每個月都能收回所有應收帳款──例如我們最初的應收帳款，我們能收回8%到9%。所以，第一個月我們以5.2億美元啟動，最後拿回了4000萬美元。所以，在市場非常艱難的情況下，擁有一個無槓桿的投資組合併為我們創造了大量現金，對我們來說是一個絕佳的機會。

And it's like -- it sounds like we put money in the piggy bank in 2021. At a decent time, we had sold some equities to do that, and it's coming back. That $400 million we put in the piggy bank's coming back close to 530.

這聽起來就像我們在2021年把錢放進了儲蓄罐。在一個合適的時機，我們賣掉了一些股票來做這件事，現在錢又回來了。我們存進儲蓄罐的4億美元現在回本了，接近5.3億美元。

Got it.

知道了。

That's the nature of the -- so that's the nature of the receivables. So I don't really -- that's Badcock's business.

這就是應收帳款的本質。所以我不覺得──那是巴德科克的事。

Our next question comes from Keith with Cruiser -- pardon me. Our next question comes from Steve with Schonfeld Strategic Advisors.

下一個問題來自 Cruiser 的 Keith——不好意思。下一個問題來自 Schonfeld Strategic Advisors 的 Steve。

Congrats on the adjusted operating EBITDA in a tough environment.

恭喜您在艱難的環境下實現了調整後的營業 EBITDA。

Thanks, Steve.

謝謝，史蒂夫。

Maybe just staying on the high level here. So in '20 and '21, well, I guess going back, you guys had never had over $100 million of net cash from operations. And with interest expense now over $175 million annual rate and negative tangible book value, when you think of the dividend, what do you think of the funding model for this dividend? What's going to be the source to fund this? Because obviously, you have the cash available to pay it down, but I guess just the sustainable funding of the dividend.

也許只是停留在高水準上。所以在2020年和2021年，嗯，我想回顧一下，你們的營運淨現金流從未超過1億美元。現在利息支出年化率超過1.75億美元，有形帳面價值為負，當您考慮股利時，您認為這種股利的融資模式是什麼？資金來源是什麼？因為顯然，你們有現金來償還，但我想，只是股息的可持續資金。

Yes. So I feel like you're -- so as I mentioned, in 2022, our recurring EBITDA funded our dividend, funded our taxes and funded our overhead. So that number, which is $310 million, was funded by $324 million of what we define as recurring EBITDA. So that's how we're funding the dividend.

是的。所以我覺得你——正如我所提到的，2022年，我們的經常性EBITDA（息稅折舊攤提前利潤）支付了股息、稅金和管理費用。所以，這3.1億美元的資金，是由我們定義的經常性EBITDA中的3.24億美元所提供的。這就是我們支付股息的方式。

And then you have two other businesses. Yes, we didn't do $100 million in cash flow. Well, we've grown our business from a brokerage business that started with 10 people that did over $200 million in EBITDA. So that business is going to be up and down, but it's -- we haven't lost money in that business in -- for more than a month like in 4 years. So we'll make money in that business, and that will be incremental cash flow.

然後還有另外兩家公司。是的，我們的現金流沒有達到1億美元。我們的業務是從一家經紀公司發展起來的，最初只有10個人，息稅折舊攤提前利潤（EBITDA）卻超過2億美元。所以這兩項業務肯定會有起伏，但四年來，我們在這方面從未虧損超過一個月。所以我們會從這方面獲利，這將會是增量現金流。

Got it. Okay. And then thinking of that core capital market servicing fee, so it's been the $65 million to $70 million run rate on that line. The third quarter had $42 million of incentive fees. Just remind me if that was cash or noncash, what drove those? And if that number is in that adjusted EBITDA and if that's in...

明白了。好的。然後想想核心資本市場服務費，這部分費用的運作率在6500萬到7000萬美元之間。第三季有4200萬美元的激勵費用。請提醒我一下，這些激勵費用是現金還是非現金，又是什麼驅動了這些費用的產生？如果這個數字包含在調整後的EBITDA中，如果包含在…

Are we talking about the PRSUs there?

我們談論的是那裡的 PRSU 嗎？

There was $42 million of incentive fees in the third quarter Q I saw, and that is what lifted that line from the $65 million to $70 million run rate up. And I just want to know what was that incentive fee. Was it cash, noncash and what we can expect and if that was in the $310 million of EBITDA you called out?

我看到第三季有4200萬美元的激勵費用，這使得該數字從6500萬美元的運行率上升到7000萬美元。我想知道這筆激勵費用是多少。是現金還是非現金？我們可以預期多少？這筆激勵費用是否包含在您所說的3.1億美元的EBITDA中？

It wasn't in the $310 million EBITDA because we don't have any incentive fees in that. Phil, can you respond to that?

這筆費用不包含在3.1億美元的EBITDA中，因為我們沒有收取任何激勵費用。菲爾，你能解釋一下嗎？

Yes. I think we're going to -- you know what? Why don't -- Steve, why don't we follow up with you? I'm not sure exactly the incentive fee you're referring to there.

是的。我想我們會……你知道嗎？為什麼不……史蒂夫，我們為什麼不跟進一下你的情況？我不太確定你指的是什麼獎勵費。

Okay. All right. Great. Yes. It's just in the third quarter Q, but it's better to go through that in more detail later, I'm happy to do that.

好的。好的。太好了。是的。這只是在第三季的問題，但最好稍後再詳細討論，我很樂意這樣做。

This concludes our question-and-answer session. I'd now like to turn the call back to Mr. Riley for his closing remarks.

我們的問答環節到此結束。現在，請賴利先生致閉幕詞。

Okay. Well, thank you. Thank you, everyone. I saw 480 people on this call, which I think is a record. I think a lot of people work at the firm. They've entrusted their careers with us. We take that with a ton of responsibility.

好的。謝謝大家。我看到這次電話會議有480人參加，我認為這是創紀錄的。我想很多人都在公司工作。他們把自己的職業生涯託付給了我們。我們對此負有重大責任。

We know that there's been a lot of noise, a lot of inaccuracy floating out there. Hopefully, we addressed it. We think we're incredibly well positioned as we move forward in 2023 as we've kind of laid out on a recurring and episodic side.

我們知道外界有很多噪音和不準確的資訊。希望我們能夠解決這些問題。我們認為，隨著我們在2023年的發展，我們已經做好了非常有利的準備，因為我們在循環和偶發方面都有所佈局。

And we think we have a great runway, and we're very appreciative to everybody that helps us get there. And to our shareholders, we know we're a somewhat difficult story, and we have some ups and downs. But overall, I think we've performed, and we're dedicated to continue to perform. So thank you for giving us that opportunity. Thank you, everyone.

我們認為我們擁有良好的發展路徑，並非常感謝所有幫助我們實現目標的人。對於我們的股東，我們知道我們目前的情況有些困難，也經歷了一些起伏。但總的來說，我認為我們表現不錯，並且我們致力於繼續保持良好的表現。所以，感謝你們給我們這個機會。謝謝大家。

Thank you. Before we conclude today's call, I will provide B. Riley Financial's safe harbor statement, which includes important cautions regarding forward-looking statements made during this call.

謝謝。在結束今天的電話會議之前，我將提供B. Riley Financial的安全港聲明，其中包含對本次電話會議中前瞻性陳述的重要警告。

Statements made during this call that are not descriptions of historical facts are forward-looking statements that are not on management's current expectations and assumptions and are subject to risks and uncertainties. If such risks or uncertainties materialize or such assumptions prove incorrect, our business, operating results, financial condition and stock price could be materially negatively affected.

本次電話會議中所做的非歷史事實陳述均為前瞻性陳述，並非基於管理階層目前的預期和假設，且受風險及不確定性因素影響。如果此類風險或不確定性因素成為現實，或此類假設被證明存在錯誤，我們的業務、經營業績、財務狀況和股價可能會受到重大負面影響。

You should not place undue reliance on such forward-looking statements, which are based on the information currently available to us and speak only as of today's date. Such forward-looking statements include, but are not limited to, statements regarding our [excitement] and the expected growth of our business segments.

您不應過度依賴此類前瞻性陳述，這些陳述基於我們目前掌握的信息，且僅代表截至今日的觀點。此類前瞻性陳述包括但不限於關於我們[興奮]和我們業務部門預期成長的陳述。

Factors that could cause such actual results to differ materially from those contemplated or implied by such forward-looking statements include, without limitations, the risks described from time to time in B. Riley Financial, Inc.'s periodic filings with the SEC, including, without limitation, the risks described in B. Riley Financial, Inc.'s annual report on Form 10-K for the year ended December 31, 2021, and in our quarterly reports on Form 10-Q for the quarters ended March 31, June 30, September 30, 2022 under the captions risk factors and management's discussion and analytics of financial condition and results of operations as applicable.

可能導致實際結果與前瞻性陳述所預期或暗示的結果有重大差異的因素包括但不限於 B. Riley Financial, Inc. 不時向美國證券交易委員會提交的定期文件中所述的風險，包括但不限於 B. Riley Financial, Inc. 截至 2021 年 12 月 31 日的 10-K 表年度報告中所述的風險，以及截至 202 月 31 日的 10-K 表年度報告中所述的風險，以及截至 2093 月 31 月 2093 月 202 月 3 月 2093 月 203 月 203 月 203 月 203 月 203 月 203 月 203 月 203 月203 月 203 月203 月 203 月 2093 月）日的 10-Q 表季度報告中「風險因素」和「管理階層對財務狀況和經營成果的討論和分析」（如適用）中所述的風險。

Additional information will be set forth in our annual report on Form 10-K for the year ended December 31, 2022. These factors should be considered carefully, and participants are cautioned not to place undue reliance on such forward-looking statements. All information is current as of today's call, and B. Riley Financial undertakes no duty to update this information.

更多資訊將載於我們截至2022年12月31日的10-K表格年度報告中。這些因素應仔細考慮，並提醒參與者不要過度依賴此類前瞻性陳述。所有資訊均為截至今日電話會議的最新信息，B. Riley Financial 不承擔更新此資訊的義務。

Thank you for joining us today for B. Riley Financial's Fourth Quarter and Full Year 2022 Earnings Conference Call. You may now disconnect.

感謝您今天參加 B. Riley Financial 2022 年第四季及全年業績電話會議。您現在可以斷開連線了。