Sean Haydon's questions to B. Riley Financial (RILY) leadership • Q1 2024
Question
Asked about a revenue discrepancy in the Consumer Products segment, margins in the Communications segment, the use of capital from the reduced dividend, the outlook for Capital Markets, and the potential for further expenses from the recent internal investigation.
Answer
The revenue delta is likely from retail liquidations. Communications margins were impacted by two underperforming assets. Capital from the dividend cut will be allocated opportunistically, possibly to buy back debt at a discount. Capital Markets are picking up after a slow start, and they expect momentum to build. Some investigation expenses will spill into Q2 but will be minimal.