AP NEWS

B. Riley Financial Reports Financial Results for the Second Quarter of 2018

August 2, 2018

Record Results Exceed Q2 Guidance for Net Income and Adjusted EBITDADeclares Special Dividend of $0.22 Per Share in addition to Regular Quarterly Dividend of $0.08 Per Share

LOS ANGELES, Aug. 02, 2018 (GLOBE NEWSWIRE) -- B. Riley Financial, Inc. (NASDAQ:RILY), a diversified provider of financial and business advisory services, reported results for its second quarter ended June 30, 2018.

Second Quarter 2018 Financial Highlights

-- Total revenues of $125.5 million; net income of $17.0 million or $0.64 per diluted share -- Adjusted EBITDA of $41.4 million; adjusted net income of $22.8 million or $0.86 per diluted share

“We’re pleased to report record results for the second quarter which exceeded our guidance for net income and adjusted EBITDA. We saw strength in each of our businesses driven by meaningful fee engagements in both of our more episodic businesses, bolstered by steady recurring revenue from our appraisal, wealth management and asset management businesses, and cash flow generated by principal investments,” said Bryant Riley, Chairman and Co-Chief Executive Officer, B. Riley Financial. “This growth reflects the expanded opportunities our platform offers to create unique opportunities which involve multiple parts of our business. Recent highlights which demonstrate our ability to be effective in this strategy include the purchase of assets of Bon-Ton Stores, our support of the proposed acquisition of Rent-A-Center Inc., and our participation in the Toys ‘R’ Us liquidation. As we continue to focus on growth, we’re excited about the addition of GlassRatner and the expertise this team offers, as well as future contributions from our pending acquisition of magicJack to our principal investments segment.”

Second Quarter 2018 Financial ResultsFor the three months ended June 30, 2018, total revenues increased to $125.5 million from $66.7 million for the same year-ago period and $95.8 million for the first quarter of 2018. The increase in revenues for the second quarter of 2018 was primarily driven by higher revenues associated with significant fee-based engagements for the company’s Capital Markets and Auction and Liquidation segments.

-- Capital Markets Segment: Revenues increased to $77.8 million for the second quarter of 2018 compared to $23.9 million for the same year-ago period and $60.3 million for the first quarter of 2018. Segment income increased to $12.0 million for the second quarter of 2018 compared to a loss of $4.8 million for the same year-ago period and a loss of $0.3 million for the first quarter of 2018. The sequential increase for this segment was primarily driven by an uptick in fee-based engagements for B. Riley FBR. The year-over-year increase was primarily driven by the acquisitions of FBR & Co. and Wunderlich Securities which were completed in June and July of 2017, respectively. -- Auction and Liquidation Segment: Revenues for the second quarter of 2018 increased to $26.8 million from $21.8 million for the same year-ago period and $15.5 million for the first quarter of 2018. Segment income increased to $16.3 million for the second quarter of 2018 from $7.3 million for the same year-ago period and $8.1 million for the first quarter of 2018. Results for this segment were primarily driven by an increase in revenues related to large retail liquidation engagements conducted during the second quarter of 2018. -- Valuation and Appraisal Segment: Revenues increased to $9.5 million for the second quarter of 2018 from $8.0 million for the same year-ago period and $8.5 million for the first quarter of 2018. Segment income increased to $2.9 million for the second quarter of 2018 from $2.3 million for the same year-ago period and $1.9 million for the first quarter of 2018. -- Principal Investments – United Online Segment: Revenues totaled $11.4 million for the second quarter of 2018. Segment income totaled $4.7 million for the second quarter of 2018. Revenues from United Online are primarily driven by services and fees for internet access and related subscription services, and partially by the sale of goods.

Net income for the second quarter of 2018 increased to $17.0 million or $0.64 per diluted share from $3.3 million or $0.15 per diluted share for the same year-ago period and $4.5 million or $0.17 per diluted share for the first quarter of 2018.

Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, restructuring costs, transaction costs, share-based compensation, fair value adjustments and insurance settlement recovery) increased to $41.4 million from $17.6 million for the same year-ago period. (See “Note Regarding Use of Non-GAAP Financial Measures” below for further discussion of this non-GAAP term.)

Adjusted net income (excluding the impact of share-based payments, amortization of intangible assets, restructuring costs, transaction costs, fair value adjustments, insurance settlement recovery, tax impact of aforementioned adjustments, and certain tax items) increased to $22.8 million or $0.86 per diluted share for the second quarter of 2018. This compares to $8.8 million or $0.40 per diluted share for the same year-ago period. (See “Note Regarding Use of Non-GAAP Financial Measures” below for further discussion of this non-GAAP term.)

As of June 30, 2018, the company had $191.3 million in cash and cash equivalents, $0.5 million in restricted cash, $35.2 million due from clearing brokers, $143.0 million in net securities and other investments owned (at fair value), $200.0 million in advances against customer contracts, and $491.1 million in total debt. Total B. Riley Financial stockholders’ equity was $263.4 million. Shares outstanding as of June 30, 2018 were approximately 26.1 million.

Declaration of DividendB. Riley Financial’s board of directors approved a regular quarterly dividend of $0.08 per share and a special dividend of $0.22 per share which will be paid on or about August 31, 2018 to stockholders of record as of August 16, 2018.

Update on magicJack Acquisition The company’s previously announced acquisition of magicJack VocalTec Ltd. remains pending final regulatory approval. The company will communicate additional updates once closing conditions have been satisfied.

Conference CallThe company will host a conference call today, Thursday, August 2, 2018 at 4:30 p.m. ET (1:30 p.m. PT). Bryant Riley, Chairman and co-CEO; Tom Kelleher, co-CEO; and Phillip Ahn, CFO and COO, will host the conference call followed by a question and answer period.

B. Riley Financial, Inc. Second Quarter 2018 Earnings Call Toll-Free: 1-855-327-6838 International: 1-604-235-2082

A replay of the call will be available after 7:30 p.m. ET on the same day through August 9, 2018.

Replay Dial-In Numbers Toll-Free: 1-844-512-2921 International: 1-412-317-6671 Replay pin: 10005262

The conference call will be broadcast simultaneously and available for replay via the investor section of the company’s website. For more information, visit ir.brileyfin.com.

About B. Riley Financial, Inc. (NASDAQ:RILY) B. Riley Financial provides collaborative financial services and solutions tailored to fit the capital raising and financial advisory needs of public and private companies and high net worth individuals. The company operates through several wholly-owned subsidiaries, including B. Riley FBR, a full-service investment bank and institutional brokerage; Great American Group, a leading provider of asset disposition, appraisal, corporate advisory and valuation services; GlassRatner, a specialty financial advisory services and consulting firm; B. Riley Wealth Management, B. Riley Asset Management and B. Riley Alternatives, which offer investment management to institutional and high net worth investors; Great American Capital Partners, which originates and underwrites senior secured loans for asset-rich companies; and B. Riley Principal Investments, which invests in or acquires companies and assets with attractive return profiles.

Forward-Looking StatementsStatements in this press release that are not descriptions of historical facts are forward‐looking statements that are based 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. In some cases, you can identify forward-looking statements by terminology including “anticipates,” “believes,” “can,” “continue,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “should,” “will,” “would” or the negative of these terms or other comparable terminology. 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 the date of this press release. Such forward looking statements include, but are not limited to, the anticipated benefits of the acquisition of GlassRatner, the effects of our business model, the effects and anticipated benefits of our completed and pending acquisitions and related actions, expectations regarding future transactions and the financial impact, size and consistency of returns and timing thereof, expectations regarding market dynamics, as well as statements regarding the effect of investments in our business segments. Because these forward-looking statements involve known and unknown risks and uncertainties, there are important factors that could cause actual results, events or developments to differ materially from those expressed or implied by these forward-looking statements. Risk factors that could cause actual results to differ from those contained in the forward-looking statements include but are not limited to risks related to: volatility in our revenues and results of operations; changing conditions in the financial markets; our ability to generate sufficient revenues to achieve and maintain profitability; the short term nature of our engagements; the accuracy of our estimates and valuations of inventory or assets in “guarantee” based engagements; competition in the asset management business; potential losses related to our auction or liquidation engagements; our dependence on communications, information and other systems and third parties; potential losses related to purchase transactions in our auctions and liquidations business; the potential loss of financial institution clients; potential losses from or illiquidity of our proprietary investments; changing economic and market conditions; potential liability and harm to our reputation if we were to provide an inaccurate appraisal or valuation; potential mark-downs in inventory in connection with purchase transactions; failure to successfully compete in any of our segments; loss of key personnel; our ability to borrow under our credit facilities as necessary; failure to comply with the terms of our credit agreements; our ability to meet future capital requirements; our ability to realize the benefits of our completed and proposed acquisitions, including our ability to achieve anticipated opportunities and operating cost savings, and accretion to reported earnings estimated to result from completed and proposed acquisitions in the time frame expected by management or at all; our ability to promptly and effectively integrate our business with that of GlassRatner; the effect of the GlassRatner acquisition on our and GlassRatner’s customers, employees and counterparties; the possibility that our proposed acquisition of magicJack VocalTec Ltd. (“magicJack” or “MJ”) does not close when expected or at all; our ability to promptly and effectively integrate our business with that of magicJack if such transaction closes; the reaction to the magicJack acquisition or our and magicJack’s customers, employees and counterparties; the diversion of management time on acquisition-related issues; and those risks described from time to time in B. Riley Financial, Inc.‘s 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, 2017 under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Additional information is also set forth in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2018. These factors should be considered carefully, and readers are cautioned not to place undue reliance on such forward-looking statements. All information is current as of the date this press release is issued, and B. Riley Financial, Inc. undertakes no duty to update this information.

Note Regarding Use of Non-GAAP Financial MeasuresCertain of the information set forth herein, including adjusted net income and adjusted EBITDA, may be considered non-GAAP financial measures. B. Riley Financial believes this information is useful to investors because it provides a basis for measuring the company’s available capital resources, the operating performance of its business and its cash flow, excluding net interest expense, provisions for or benefit from income taxes, depreciation, amortization, transaction expenses, restructuring costs, stock-based compensation, fair value adjustments and insurance settlement recovery that would normally be included in the most directly comparable measures calculated and presented in accordance with Generally Accepted Accounting Principles (“GAAP”). In addition, the company’s management uses these non-GAAP financial measures along with the most directly comparable GAAP financial measures in evaluating the company’s operating performance, capital resources and cash flow. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP, and non-financial measures as reported by the company may not be comparable to similarly titled amounts reported by other companies. The non-GAAP measures are described above and are reconciled to the corresponding GAAP measure in the unaudited condensed consolidated financial statements portion of this release under the headings “Adjusted Net Income Reconciliation” and “Adjusted EBITDA Reconciliation.”

Investor ContactInvestor Relationsir@brileyfin.com(310) 966-1444

Media ContactJo Anne McCusker jmccusker@brileyfin.com (646) 885-5425

B. RILEY FINANCIAL, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Dollars in thousands, except par value) June 30, December 31, 2018 2017 ------------- ------------- (Unaudited) Assets Assets Cash and cash equivalents $ 191,274 $ 132,823 Restricted cash 467 19,711 Due from clearing brokers 35,242 31,479 Securities and other investments owned, at fair value 160,540 145,360 Securities borrowed 1,013,988 807,089 Accounts receivable, net 33,111 20,015 Due from related parties 8,042 5,689 Advances against customer contracts 200,036 5,208 Prepaid expenses and other assets 42,203 22,605 Property and equipment, net 11,195 11,977 Goodwill 99,246 98,771 Other intangible assets, net 52,603 56,948 Deferred income taxes 29,222 29,229 --------- - Total assets $ 1,877,169 $ 1,386,904 - --------- - - --------- - Liabilities and Equity Liabilities Accounts payable $ 3,790 $ 2,650 Accrued expenses and other liabilities 72,986 71,685 Deferred revenue 3,600 3,141 Due to partners 7,398 1,578 Securities sold not yet purchased 17,583 28,291 Securities loaned 1,012,240 803,371 Mandatorily redeemable noncontrolling interests 4,238 4,478 Asset based credit facility 105,004 — Notes payable 52,286 2,243 Senior notes payable 333,768 203,621 Total liabilities 1,612,893 1,121,058 Commitments and contingencies B. Riley Financial, Inc. stockholders’ equity: Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued — — Common stock, $0.0001 par value; 40,000,000 shares authorized; 26,070,165 2 2 and 26,569,462 issued and outstanding as of June 30, 2018 and December 31, 2017, respectively Additional paid-in capital 244,631 259,980 Retained earnings 20,408 6,582 Accumulated other comprehensive loss (1,619 ) (534 ) - --------- - - --------- - Total B. Riley Financial, Inc. stockholders’ equity 263,422 266,030 Noncontrolling interests 854 (184 ) - --------- - - --------- - Total equity 264,276 265,846 Total liabilities and equity $ 1,877,169 $ 1,386,904 - --------- - - --------- -

B. RILEY FINANCIAL, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Income (Unaudited) (Dollars in thousands, except share data) Three Months Ended Six Months Ended June 30, June 30, ------------------------------ ------------------------------ 2018 2017 2018 2017 -------------- -------------- -------------- -------------- Revenues: Services and fees $ 118,882 $ 64,395 $ 207,331 $ 117,213 Interest income - Securities lending 6,591 2,218 13,882 2,218 Sale of goods 28 63 66 142 Total revenues 125,501 66,676 221,279 119,573 - ---------- - ---------- - - ---------- - - ---------- - Operating expenses: Direct cost of services 13,925 18,485 25,577 36,086 Cost of goods sold 49 130 90 189 Selling, general and administrative expenses 76,723 37,722 144,821 61,874 Restructuring charge 1,602 6,214 1,819 6,588 Interest expense - Securities lending 4,724 1,565 9,892 1,565 ---------- - ---------- - ---------- - ---------- - Total operating expenses 97,023 64,116 182,199 106,302 - ---------- - ---------- - - ---------- - - ---------- - Operating income 28,478 2,560 39,080 13,271 Other income (expense): Interest income 166 150 294 282 Income from equity investment 4,893 — 4,221 — Interest expense (10,359 ) (1,894 ) (14,586 ) (2,685 ) - ---------- - ---------- - - ---------- - - ---------- - Income before income taxes 23,178 816 29,009 10,868 (Provision for) benefit from income taxes (5,377 ) 2,547 (6,366 ) 6,396 - ---------- - ---------- - - ---------- - - ---------- - Net income 17,801 3,363 22,643 17,264 Net income (loss) attributable to 804 83 1,143 (37 ) noncontrolling interests ---------- - ---------- - ---------- - ---------- - Net income attributable to B. Riley $ 16,997 $ 3,280 $ 21,500 $ 17,301 Financial, Inc. - ---------- - ---------- - - ---------- - - ---------- - Basic income per share $ 0.67 $ 0.15 $ 0.83 $ 0.85 Diluted income per share $ 0.64 $ 0.15 $ 0.80 $ 0.82 Cash dividends per share $ 0.12 $ 0.16 $ 0.28 $ 0.42 Weighted average basic shares outstanding 25,424,178 21,216,829 25,799,077 20,311,231 Weighted average diluted shares outstanding 26,397,513 22,119,055 26,785,169 20,984,757

B. RILEY FINANCIAL, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (Unaudited) (Dollars in thousands) Six Months Ended June 30, ------------------------- 2018 2017 ------------ ----------- Cash flows from operating activities: Net income $ 22,643 $ 17,264 Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization 6,670 4,290 Provision for doubtful accounts 648 704 Share-based compensation 5,559 3,940 Recovery of key man life insurance — (6,000 ) Non-cash interest and other 1,870 166 Effect of foreign currency on operations (582 ) (855 ) Income from equity investment (4,221 ) — Deferred income taxes 7 (23,636 ) Impairment of leaseholds, lease loss accrual and loss on disposal of fixed 1,403 1,371 assets Income allocated and fair value adjustment for mandatorily redeemable 543 7,268 noncontrolling interests Change in operating assets and liabilities: Due from clearing brokers (3,763 ) 13,408 Securities and other investments owned (15,180 ) (40,975 ) Securities borrowed (206,899 ) (48,134 ) Accounts receivable and advances against customer contracts (208,658 ) (37,153 ) Prepaid expenses and other assets (16,108 ) 14,988 Accounts payable, accrued payroll and related expenses, accrued value added tax payable and other accrued expenses 5,320 (22,748 ) Amounts due to/from related parties and partners 3,362 (13,333 ) Securities sold, not yet purchased (10,708 ) 2,675 Deferred revenue 459 (425 ) Securities loaned 208,869 44,365 Net cash used in operating activities (208,766 ) (82,820 ) - -------- - - ------- - Cash flows from investing activities: Cash acquired from acquisition of FBR & Co. — 15,738 Acquisition of other businesses — (2,052 ) Acquisition consideration payable — (10,381 ) Purchases of property and equipment and intangible assets (1,836 ) (306 ) Proceeds from key man life insurance — 6,000 Proceeds from sale of property and equipment and intangible assets 37 619 Equity investments (3,575 ) — Dividends from equity investment 1,695 — Net cash (used in) provided by investing activities (3,679 ) 9,618 - -------- - - ------- - Cash flows from financing activities: Proceeds from asset based credit facility 300,000 65,987 Repayment of asset based credit facility (194,460 ) (45,750 ) Payment of contingent consideration — (1,250 ) Proceeds from notes payable 51,020 — Repayment of notes payable (357 ) — Proceeds from issuance of senior notes 132,123 60,375 Payment of debt issuance costs (4,936 ) (2,528 ) Payment of employment taxes on vesting of restricted stock (3,570 ) (1,057 ) Dividends paid (9,549 ) (8,380 ) Repurchase of common stock (17,338 ) — Distribution to noncontrolling interests (782 ) (1,646 ) -------- - Net cash provided by financing activities 252,151 65,751 - -------- - - ------- - Increase (decrease) in cash, cash equivalents and restricted cash 39,706 (7,451 ) Effect of foreign currency on cash, cash equivalents and restricted cash (499 ) 2,354 - - Net increase (decrease) in cash, cash equivalents and restricted cash 39,207 (5,097 ) Cash, cash equivalents and restricted cash, beginning of year 152,534 115,399 -------- - Cash, cash equivalents and restricted cash, end of period $ 191,741 $ 110,302 - -------- - - ------- - Supplemental disclosures: Interest paid $ 21,868 $ 2,890 Taxes paid $ 2,306 $ 9,689

B. RILEY FINANCIAL, INC. AND SUBSIDIARIES Segment Financial Information (Unaudited) (Dollars in thousands) Three Months Ended Six Months Ended June 30, June 30, ------------------------ ------------------------- 2018 2017 2018 2017 ----------- ----------- ------------ ----------- Capital Markets reportable segment: Revenues - Services and fees $ 71,194 $ 21,676 $ 124,232 $ 39,399 Interest income - Securities lending 6,591 2,218 13,882 2,218 - ------- - - ------- - - -------- - - ------- - Total revenues 77,785 23,894 138,114 41,617 Selling, general, and administrative expenses (57,713 ) (22,829 ) (111,352 ) (33,798 ) Restructuring charge (1,774 ) (3,923 ) (2,029 ) (3,923 ) Interest expense - Securities lending (4,724 ) (1,565 ) (9,892 ) (1,565 ) Depreciation and amortization (1,555 ) (404 ) (3,119 ) (531 ) Segment income (loss) 12,019 (4,827 ) 11,722 1,800 - ------- - - ------- - - -------- - - ------- - Auction and Liquidation reportable segment: Revenues - Services and fees 26,836 21,807 42,353 35,803 Direct cost of services (6,849 ) (11,763 ) (11,425 ) (22,097 ) Cost of goods sold (16 ) — (17 ) — Selling, general, and administrative expenses (3,617 ) (2,749 ) (6,498 ) (4,599 ) Depreciation and amortization (8 ) (5 ) (16 ) (10 ) Segment income 16,346 7,290 24,397 9,097 - ------- - - ------- - - -------- - - ------- - Valuation and Appraisal reportable segment: Revenues - Services and fees 9,459 7,960 17,979 15,756 Direct cost of services (4,123 ) (3,581 ) (8,321 ) (7,253 ) Selling, general, and administrative expenses (2,414 ) (2,062 ) (4,759 ) (4,142 ) Depreciation and amortization (54 ) (43 ) (103 ) (87 ) Segment income 2,868 2,274 4,796 4,274 - ------- - - ------- - - -------- - - ------- - Principal Investments - United Online segment: Revenues - Services and fees 11,393 12,952 22,767 26,255 Revenues - Sale of goods 28 63 66 142 - ------- - - ------- - - -------- - - ------- - Total revenues 11,421 13,015 22,833 26,397 Direct cost of services (2,953 ) (3,141 ) (5,831 ) (6,736 ) Cost of goods sold (33 ) (130 ) (73 ) (189 ) Selling, general, and administrative expenses (2,015 ) (2,791 ) (3,973 ) (6,103 ) Depreciation and amortization (1,679 ) (1,770 ) (3,358 ) (3,610 ) Restructuring charge — (109 ) — (483 ) Segment income 4,741 5,074 9,598 9,276 - ------- - - ------- - - -------- - - ------- - Consolidated operating income from reportable segments 35,974 9,811 50,513 24,447 Corporate and other expenses (including restructuring (7,496 ) (7,251 ) (11,433 ) (11,176 ) recovery of $172 and $210 during the three and six months ended June 30, 2018, respectively, and restructuring charge of $2,182 during the three and six months ended June 30, 2017 Interest income 166 150 294 282 Income on equity investments 4,893 — 4,221 — Interest expense (10,359 ) (1,894 ) (14,586 ) (2,685 ) - ------- - - ------- - - -------- - - ------- - Income before income taxes 23,178 816 29,009 10,868 (Provision for) benefit from income taxes (5,377 ) 2,547 (6,366 ) 6,396 - ------- - - ------- - - -------- - - ------- - Net income 17,801 3,363 22,643 17,264 Net income (loss) attributable to noncontrolling 804 83 1,143 (37 ) interests - ------- - - ------- - - -------- - - ------- - Net income attributable to B. Riley Financial, Inc. $ 16,997 $ 3,280 $ 21,500 $ 17,301 - ------- - - ------- - - -------- - - ------- -

B. RILEY FINANCIAL, INC. AND SUBSIDIARIES Adjusted EBITDA Reconciliation (Unaudited) (Dollars in thousands) Three Months Ended Six Months Ended June 30, June 30, ---------------------- ---------------------- 2018 2017 2018 2017 ---------- ---------- ---------- ---------- Net income attributable to B. Riley Financial, Inc. $ 16,997 $ 3,280 $ 21,500 $ 17,301 Adjustments: Provision for (benefit from) income taxes 5,377 (2,547 ) 6,366 (6,396 ) Interest expense 10,359 1,894 14,586 2,685 Interest income (166 ) (150 ) (294 ) (282 ) Share based payments 2,678 1,608 5,236 2,515 Depreciation and amortization 3,333 2,248 6,670 4,290 Restructuring costs 1,602 6,214 1,819 6,588 Transactions related costs 1,191 4,789 1,545 5,675 Fair value adjustment — 6,250 — 6,250 Insurance settlement recovery — (6,000 ) — (6,000 ) - ------ - - ------ - - ------ - - ------ - Total EBITDA adjustments 24,374 14,306 35,928 15,325 - ------ - - ------ - - ------ - - ------ - Adjusted EBITDA $ 41,371 $ 17,586 $ 57,428 $ 32,626 - ------ - - ------ - - ------ - - ------ -

B. RILEY FINANCIAL, INC. AND SUBSIDIARIES Adjusted Net Income Reconciliation (Unaudited) (Dollars in thousands, except share data) Three Months Ended Six Months Ended June 30, June 30, ----------------------------- ------------------------------ 2018 2017 2018 2017 - ------------- -------------- -------------- -------------- Net income attributable to B. Riley $ 16,997 $ 3,280 $ 21,500 $ 17,301 Financial, Inc. Adjustments: Share based payments 2,678 1,608 5,236 2,515 Amortization of intangible assets 2,146 1,554 4,306 3,076 Restructuring costs 1,602 6,214 1,819 6,588 Transactions related costs 1,191 4,789 1,545 5,675 Fair value adjustment — 6,250 — 6,250 Insurance settlement recovery — (6,000 ) — (6,000 ) Income tax effect of adjusting entries (1,831 ) (8,857 ) (2,783 ) (10,503 ) Tax benefit from tax election to treat — — — (8,389 ) acquisition of UOL as a taxable business combination Adjusted net income attributable to B. Riley $ 22,783 $ 8,838 $ 31,623 $ 16,513 Financial, Inc. - ---------- - - ---------- - - ---------- - - ---------- - Adjusted income per common share: Adjusted basic income per share $ 0.90 $ 0.42 $ 1.23 $ 0.81 Adjusted diluted income per share $ 0.86 $ 0.40 $ 1.18 $ 0.79 Shares used to calculate adjusted basic net 25,424,178 21,216,829 25,799,077 20,311,231 income per share Shares used to calculate adjusted diluted 26,397,513 22,119,055 26,785,169 20,984,757 net income per share

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