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BUSINESS SEGMENTS
 12 Months Ended
Dec. 31, 2014
Segment Reporting [Abstract]  
BUSINESS SEGMENTS

NOTE 20— BUSINESS SEGMENTS

 

The Company’s operating segments reflect the manner in which the business is managed and how the Company allocates resources and assesses performance internally. The Company has several operating subsidiaries through which it delivers specific services. The Company provides auction, liquidation, capital advisory, financing, real estate, and other services to stressed or distressed companies in a variety of diverse industries that have included apparel, furniture, jewelry, real estate, and industrial machinery. The Company also provides appraisal and valuation services for retail and manufacturing companies. As a result of the acquisition of BRC, the Company provides corporate finance, research, sales and trading services to corporate, institutional and high net worth clients.  In addition, as a result of the acquisition of Shoon on May 4, 2012, the Company operated ten retail stores in the United Kingdom for the period from May 4, 2012, the date of investment, through July 31, 2013 and Shoon’s results were reported in the UK Retail Stores segment. In August 2013, the Shoon shareholder agreement was amended and restated to eliminate the Company’s super majority voting rights which enabled the Company to control the board of directors of Shoon. As a result of this amendment, the Company no longer controls Shoon and the operating results of Shoon are not consolidated for any periods after July 31, 2013. As such, the Company no longer operates in the UK Retail Stores segment. In January 2014, Shoon was sold to a third party, and the Company no longer has a financial interest in the operations of Shoon.

 

The Company’s business in 2013 was previously classified by management into the Auction and Liquidation segment, Valuation and Appraisal segment, and UK Retail Stores segment. In 2014, with the acquisition of BRC, the Company’s business is classified into the Auction and Liquidation segment, Valuation and Appraisal segment, and Capital Markets segment. These reportable segments are all distinct businesses, each with a different marketing strategy and management structure.

 

The following is a summary of certain financial data for each of the Company’s reportable segments:

 

    Year Ended December 31,  
    2014     2013     2012  
Auction and Liquidation reportable segment:                        
Revenues - Services and fees   $ 17,166     $ 32,409     $ 40,132  
Revenues - Sale of goods     9,859       9,963       8,106  
Total revenues     27,025       42,372       48,238  
Direct cost of services     (10,719 )     (11,120 )     (12,327 )
Cost of goods sold     (14,080 )     (7,940 )     (7,275 )
Selling, general, and administrative expenses     (8,481 )     (11,889 )     (17,064 )
Restructuring charge     (1,339 )     -       -  
Depreciation and amortization     (107 )     (176 )     (193 )
Segment income     (7,701 )     11,247       11,379  
Valuation and Appraisal reportable segment:                        
Revenues - Services and fees     30,671       27,558       25,492  
Direct cost of services     (12,747 )     (13,026 )     (11,584 )
Selling, general, and administrative expenses     (10,721 )     (8,718 )     (6,974 )
Restructuring charge     (203 )     -       -  
Depreciation and amortization     (151 )     (143 )     (121 )
Segment income     6,849       5,671       6,813  
Capital markets reportable segment:                        
Revenues - Services and fees     19,420       -       -  
Selling, general, and administrative expenses     (14,185 )     -       -  
Depreciation and amortization     (193 )     -       -  
Segment income     5,042       -       -  
UK Retail Stores reportable segment:                        
Revenues - Sale of goods     -       6,202       10,206  
Cost of goods sold     -       (3,566 )     (5,475 )
Selling, general, and administrative expenses     -       (3,773 )     (4,462 )
Depreciation and amortization     -       (45 )     (18 )
Segment income     -       (1,182 )     251  
Consolidated operating income from reportable segments     4,190       15,736       18,443  
Corporate and other expenses (includes  restructuring charge of $1,006 for the year ended December 31, 2014)     (11,621 )     (11,638 )     (11,002 )
Interest income     12       26       201  
Loss from equity investment in Great American Real Estate, LLC and Shoon Trading Limited     -       (177 )     (120 )
Gain from bargain purchase     -       -       1,366  
Interest expense     (1,262 )     (2,667 )     (2,612 )
(Loss) income before income taxes     (8,681 )     1,280       6,276  
Benefit (provision) for income taxes     2,886       (704 )     (1,936 )
Net (loss) income     (5,795 )     576       4,340  
Net income (loss) attributable to noncontrolling interests     6       (482 )     819  
Net (loss) income attributable to B. Riley Financial, Inc.   $ (5,801 )   $ 1,058     $ 3,521  
                         
Capital expenditures:                        
Auction and Liquidation segment   $ 38     $ 423     $ 394  
Valuation and Appraisal segment     1       418       134  
Capital Markets segment     104       -       -  
UK Retail Stores segment     -       319       106  
Total   $ 143     $ 1,160     $ 634  
    As of December 31,  
    2014     2013  
Total Assets:                
Auction and Liquidation segment   $ 41,360     $ 24,222  
Valuation and Appraisal segment     9,527       8,611  
Capital Markets segment     48,878       -  
Corporate and Other segment     39,225       40,844  
Total   $ 138,990     $ 73,677  
                                       

 

The following table presents revenues by geographical area:

 

    Year Ended December 31,  
    2014     2013     2012  
Revenues:                        
Revenues - Services and fees:                        
United States   $ 63,417     $ 50,624     $ 42,564  
Europe     3,840       9,343       23,060  
Total Revenues - Services and fees   $ 67,257     $ 59,967     $ 65,624  
                         
Revenues - Sale of goods                        
United States   $ 9,859     $ 9,532     $ 7,842  
Europe     -       6,633       10,470  
Total Revenues - Sale of goods   $ 9,859     $ 16,165     $ 18,312  
                         
Total Revenues:                        
United States   $ 73,276     $ 60,156     $ 50,406  
Europe     3,840       15,976       33,530  
Total Revenues - Services and fees   $ 77,116     $ 76,132     $ 83,936  

 

The following table presents long-lived assets and identifiable assets by geographical area:

 

    As of     As of  
    December 31,     December 31,  
    2014     2013  
Long-lived Assets - Property and Equipment, net:                
United States   $ 776     $ 990  
Europe     -       100  
Total Long-lived Assets   $ 776     $ 1,090  
                 
Identifiable Assets:                
United States   $ 137,216     $ 68,405  
Europe     1,774       5,272  
Total Long-lived Assets   $ 138,990     $ 73,677  

  

    Quarter Ended  
    March 31,     June 30,     September 30,     December 31,  
    2014     2014     2014     2014  
                         
Total revenues   $ 21,653     $ 14,947     $ 20,674     $ 19,842  
Operating loss   $ (1,258 )   $ (1,056 )   $ (1,253 )   $ (3,664 )
Loss before income taxes   $ (1,884 )   $ (1,501 )   $ (1,303 )   $ (3,993 )
Benefit for income taxes   $ 814     $ 594     $ 387     $ 1,091  
Net loss   $ (1,070 )   $ (907 )   $ (916 )   $ (2,902 )
Net loss attributable to B. Riley Financial, Inc.   $ (1,334 )   $ (777 )   $ (868 )   $ (2,822 )
                                 
Earnings (loss) per share:                                
Basic   $ (0.93 )   $ (0.16 )   $ (0.05 )   $ (0.18 )
Diluted   $ (0.93 )   $ (0.16 )   $ (0.05 )   $ (0.18 )
                                 
Weighted average shares outstanding:                                
Basic     1,434,107       4,972,203       15,911,482       15,902,607  
Diluted     1,434,107       4,972,203       15,911,482       15,902,607  

 

    Quarter Ended  
    March 31,     June 30,     September 30,     December 31,  
    2013     2013     2013     2013  
                         
Total revenues   $ 20,954     $ 15,239     $ 21,751     $ 18,188  
Operating income (loss)   $ 2,345     $ (1,935 )   $ 782     $ 2,906  
Income (loss) before income taxes   $ 1,713     $ (2,582 )   $ 103     $ 2,046  
(Provision) benefit for income taxes   $ (778 )   $ 987     $ 133     $ (1,046 )
Net income (loss)   $ 935     $ (1,595 )   $ 236     $ 1,000  
Net loss attributable to B. Riley Financial, Inc.   $ 1,289     $ (1,531 )   $ 366     $ 934  
                                 
Earnings (loss) per share:                                
Basic   $ 0.90     $ (1.07 )   $ 0.26     $ 0.65  
Diluted   $ 0.87     $ (1.07 )   $ 0.24     $ 0.62  
                                 
Weighted average shares outstanding:                                
Basic     1,434,107       1,434,107       1,434,107       1,434,107  
Diluted     1,482,780       1,434,107       1,494,528       1,495,328