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BUSINESS SEGMENTS
 9 Months Ended
Sep. 30, 2015
Segment Reporting [Abstract]  
BUSINESS SEGMENTS

NOTE 14— 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 investment banking, corporate finance, research, sales and trading services to corporate, institutional and high net worth clients. In addition, with the acquisition of MK Capital in 2015, the Company also provides wealth management services in the Capital Markets segment.

 

The Company’s business in 2014 prior to the acquisition of BRC on June 18, 2014, was previously classified by management into the Auction and Liquidation segment and Valuation and Appraisal segment. Upon closing the acquisition of BRC on June 18, 2014, 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:

                         
    Three Months Ended 
September 30,		     Nine Months Ended 
September 30,		  
    2015     2014     2015     2014  
Auction and Liquidation reportable segment:                                
Revenues - Services and fees   $ 5,727     $ 3,397     $ 28,861     $ 14,627  
Revenues - Sale of goods     122       5       10,588       9,273  
Total revenues     5,849       3,402       39,449       23,900  
Direct cost of services     (1,722 )     (1,670 )     (10,642 )     (6,708 )
Cost of goods sold     —       (1,747 )     (3,071 )     (10,811 )
Selling, general, and administrative expenses     (1,260 )     (1,460 )     (7,725 )     (7,292 )
Restructuring charge     —       (1,339 )     —       (1,339 )
Depreciation and amortization     (45 )     (19 )     (147 )     (92 )
Segment income (loss)     2,822       (2,833 )     17,864       (2,342 )
Valuation and Appraisal reportable segment:                                
Revenues - Services and fees     7,945       7,764       22,972       23,499  
Direct cost of services     (3,491 )     (3,465 )     (9,888 )     (10,293 )
Selling, general, and administrative expenses     (2,000 )     (2,091 )     (6,434 )     (7,304 )
Restructuring charge     —       (203 )     —       (203 )
Depreciation and amortization     (35 )     (40 )     (104 )     (116 )
Segment income     2,419       1,965       6,546       5,583  
Capital markets reportable segment:                                
Revenues - Services and fees     7,478       9,508       30,343       9,875  
Selling, general, and administrative expenses     (7,310 )     (6,527 )     (23,234 )     (7,046 )
Depreciation and amortization     (134 )     (83 )     (384 )     (94 )
Segment income     34       2,898       6,725       2,735  
Consolidated operating income from reportable segments     5,275       2,030       31,135       5,976  
Corporate and other expenses (includes restucturing charge of $1,006 in each of the three and nine month periods ended September 30, 2014)     (1,998 )     (3,283 )     (7,727 )     (9,543 )
Interest income     5       3       10       9  
Interest expense     (64 )     (53 )     (735 )     (1,130 )
                                 
Income (loss) before income taxes     3,218       (1,303 )     22,683       (4,688 )
(Provision) benefit for income taxes     (600 )     387       (8,060 )     1,795  
                                 
Net income (loss)     2,618       (916 )     14,623       (2,893 )
Net income attributable to noncontrolling interests     1,155       (48 )     1,814       86  
                                 
Net income (loss) attributable to B. Riley Financial, Inc.   $ 1,463     $ (868 )   $ 12,809     $ (2,979 )
                                 
Capital expenditures:                                
Auction and Liquidation segment   $ —     $ 2     $ —     $ 38  
Valuation and Appraisal segment     7       —       24       1  
Capital Markets segment     —       99       108       104  
Corporate and Other     18       —       64       —  
Total   $ 25     $ 101     $ 196     $ 143  

 

                 
    As of 
September 30,
2015		     As of 
December 31,
2014		  
Total assets:                
Auction and Liquidation segment   $ 25,415     $ 41,360  
Valuation and Appraisal segment     10,575       9,527  
Capital markets segment     64,069       48,878  
Corporate and other     42,310       39,225  
Total   $ 142,369     $ 138,990