Riley's history and overall success. We became a public company in 2014 through our combination with Great American. Since then, we have consistently stated our intention to use our balance sheet opportunistically to invest in and acquire businesses that can benefit from our platform and in turn create value for our shareholders. In line with that strategy, in 2016, our second year as a public company, we acquired United Online and we formed our Principal Investments group to enhance the value of our platform longer term with additional sources of steady and recurring cash flow. In the 7 years since, we have bought and build a number of high-quality businesses and in the process, we meaningfully expanded our core financial services, including investment banking, brokerage, wealth management, business consulting, forensic accounting, among others.

Each of these company's founding partners and entrepreneurs who have joined the B. Riley platform have benefited from the knowledge and experience of our teams and together, we capitalize on our growing market share. This is particularly true of Great American which is led by an exceptional management team that has done a tremendous job growing the business organically since our combination 10 years ago. Together, we have executed a number of strategic initiatives to grow these businesses organically. In 2023, our appraisal and liquidation businesses generated approximately $153 million in revenue and $35 million in operating income, a year-over-year increase of 35% and 69%, respectively. Our appraisal business has historically been a steady, recurring performer and has seen strong growth over the last year.

Our retail liquidation business is more episodic but over the years has provided meaningful profits which we have used to deliver returns to our shareholders and reinvest in our business. Together, Great American is a uniquely positioned asset with strategic relevance to many types of platforms and we expect there will be a robust interest in this process. Great American is one example of the underappreciated value that is hidden in plain sight across our platform. This business is currently carried on our balance sheet at a book value of approximately $35 million. I'm not going to speculate on a sale price but it's easy to do the math on the multiple. We will continue to explore options with an eye towards repurchasing our bonds and common stock while investing in the rest of our core wealth management, advisory and institutional businesses.

At our core, we are a financial services company that caters to both businesses and investors. We partner with entrepreneurs. We help them build, sell, expand and fix their businesses. We are a trusted advisor to founders, operators, company boards, financial institutions and law firms. We lean in with our balance sheet to support our clients and we hold a large investment book that is marked almost daily, reported quarterly and is volatile because of the dynamic investments we make. To put this into perspective, over the last 4 years, our core business has delivered approximately $5 billion in operating revenue and $1.5 billion in operating EBITDA. During that same time, our prop book was effectively flat which is not reflective of the opportunities our investments have created to enhance our operating results.

Obviously, the external dynamics surrounding our firm has created significant dislocation in the market value of both our common stock and publicly traded bonds. Our view is, this has created an incredible opportunity for us. We have reduced our dividend by 50% based on the many opportunities we have to reinvest in our business, including repurchasing our debt at attractive prices. That brings me to Franchise Group. It has been roughly 6 months since the take-private transaction and our team has helped FRG execute 2 transactions in line with our stated investment thesis. First was Badcock's merger with Conn's in December. This transaction resulted in FRG owning just under 50% ownership interest in a publicly traded company that had significantly increased in value since the merger was completed.

Second was FRG's sale of Sylvan Learning to Unleashed Brands earlier this month. The undisclosed purchase price was higher than what we had underwritten. FRG acquired Sylvan in 2021 for approximately $81 million. As challenging as the consumer environment has been, we remain confident in our long-term thesis for FRG. Our thesis on FRG is that, is just that, a long-term view that the underlying businesses are expected to create significant value to our shareholders. And we are working on FRG with the same vigor we have in all of our past transactions to maximize the value of our investment. Before I turn the call over to Phil, I want to express my appreciation to our employees for their continued resiliency and the clients across our businesses who have reached out to express their support for B.

Riley amid the growing noise surrounding our brand on social media. Fundamental research does not involve personal attacks, photoshopping memes or incessant harassment of our employees and business partners. This behavior alone should speak volumes about these authors. To be clear, this is not a comment about short-selling. Short-selling serves the purpose of maintaining healthy capital markets and as a public company, we have responded to constructive feedback, including from short sellers. I appreciate we are a complex business but I'm extremely proud of the business we have built, the businesses we have grown and the value we have delivered to all of our stakeholders. We have continued to deliver on our stated strategy year after year and to fully appreciate this, it's important to understand our history and where we came from.

We started this business in 1997 with every dollar we had and formed a 2-person fundamental stock research firm. We invested opportunistically to build out our platform and to enable our clients' success. This is our core business and this is where we will continue to invest. Over the next few weeks, our executive team will be on the road and I look forward to catching up with our clients, partners and investors. We appreciate your continued trust and support in B. Riley. With that, I will now turn the call over to Phil to discuss key metrics for the quarter. Tom will discuss results from our business segments before we open up for questions. Over to you, Phil.

Phillip Ahn: Thanks, Bryant. As I start my comments, I would like to remind everyone that the financial results discussed in our press release and on today's call are preliminary and unaudited. As mentioned in our press release, we will be filing a Form 12b-25 with the SEC to provide notice of the delayed filing of our annual report on Form 10-K for 2023 which we are working to complete. Now turning to our results. For the fourth quarter ended December 31, 2023, B. Riley reported total revenues of $347 million and a net loss of $70 million or $2.32 diluted loss per share. Net loss for the quarter was primarily due to a non-cash impairment charge related to Targus and unrealized investment losses related to securities owned. Investment gains and losses include realized and unrealized gains and losses on our investments.

These investment gains and losses have and will continue to create volatility in our periodic earnings. For this reason, we generally discuss our performance in the context of our operating revenues and operating adjusted EBITDA which may be considered non-GAAP financial measures. During the fourth quarter, we recast our operating metrics to include revenues from fixed income spread activity which represents spread income for our institutional business and a steady contributor to our earnings. This adjustment is reflected in our reconciliation for operating revenues and operating adjusted EBITDA. Investors can refer to our earnings release for a reconciliation of non-GAAP metrics as well as an explanation for our use of these metrics and the definition of these terms.

Excluding investment loss of $49 million, operating revenues were $395 million for the quarter compared to $449 million in Q4 of 2022. Operating adjusted EBITDA of $79 million compare to $110 million in the prior year period. Turning to our results for the full year, total revenues increased 52% to $1.65 billion in 2023, up from $1.08 billion in 2022. Operating revenues increased 25% to $1.63 billion in 2023, up from $1.31 billion in 2022. Operating adjusted EBITDA was $368 million for 2023. Our total adjusted EBITDA for the full year 2023 increased to $240 million, up from $32 million in 2022. Net loss for the year was $86 million or $2.95 diluted loss per share which again primarily related to Targus' non-cash impairment and changes to mark-to-market valuations in our investment portfolio.

Turning to highlights on our balance sheet. As of December 31, we had $232 million in unrestricted cash and cash equivalents, $1.11 billion in net securities and other investments owned and $532 million in loans receivable. At year-end, we had total cash and investments balance of approximately $1.9 billion which includes approximately $15 million in other investments reported in prepaid and other assets. Total debt, net of cash and investments, was approximately $457 million at quarter end. Total debt as of December 31 was approximately $2.4 billion. Finally, as Bryant discussed, our Board has declared a quarterly dividend of $0.50 per common share which will be paid on or about March 22 to common shareholders of record as of March 11. Now, before Tom discusses our segment results and highlights from our businesses, I wanted to note that during the fourth quarter, we realigned our segment reporting for the previously reported Consumer segment.

Our Targus business is now reported on a stand-alone basis in the Consumer Products segment. The remaining results in the previously reported Consumer segment, including results from our brands, have been reclassified into all other which is below the line and reported within corporate and other. The financial data related to these businesses has been recast in our earnings material for the periods presented. That completes my summary. I'll now turn the call over to Tom to discuss our business segments. Tom?

Tom Kelleher: Thanks, Phil. As Bryant mentioned, non-cash losses masked what was otherwise a strong year with notable progress across the vast majority of our subsidiaries. In our Capital Markets segment which includes our investments in loan portfolio and results from B. Riley Securities, revenues increased 75% to $575 million in 2023, up from $328 million in 2022. Segment income increased to $198 million in 2023, up from $82 million in 2022. Excluding investment gains and losses, segment operating revenues increased to $562 million, up from $557 million in 2022, primarily driven by investment banking and institutional brokerage activities at B. Riley Securities. B. Riley Securities saw a strong Q4 and contributed to operating revenues of over $100 million and over $20 million of operating adjusted EBITDA.

Fourth quarter investment banking revenues increased year-over-year but were slightly lower versus the previous quarter due to lower underwritten offerings. While equity capital markets remained subdued in the quarter, we saw an uptick in M&A activity and have recently gained significant market share in debt capital markets. With respect to our restructuring group, this team continues to field an increased number of opportunities and has seen a higher level of active engagements. Sales and Trading demonstrated sequential improvement, supported again by increasing contribution from fixed income trading. Looking ahead, we are gearing up for our 24th Annual Institutional Investor Conference this coming May. Our Wealth Management business returned to profitability in 2023 with revenues of $198 million and segment income of $3 million.

Reoccurring revenues contributed 60% of our Wealth revenues for the year. For the fourth quarter, revenues in fee-based assets increased year-over-year compared to our fourth quarter of 2022. This is yet another milestone following the operational realignment of this business throughout 2021 and 2022, as discussed during our December Investor Day presentation. Our Wealth Management leadership team has done a tremendous job combining legacy B. Riley Wealth with National Holdings which we acquired in 2021. Through their efforts, we have realized significant annualized savings, lowered fixed costs, increased revenue contributions from reoccurring lines of business, all while derisking the business. Importantly, we have significantly improved process efficiencies to help us better support our clients.

B. Riley Wealth today includes a balanced mix of over 400 independent and W-2 reps and advisors serving clients, coast to coast. Assets under management increased to $25.4 billion at December 31, 2023, up from $24 billion in 2022. We maintained strong relationships with our premier clearing and custodial partners where all of our clients' assets are held. In Auction and Liquidation, revenue increased 39% to $103 million in 2023, up from $74 million in 2022. Our Retail Solutions business completed the year with approximately $30 million net deal profit. We saw a significant uptick in retail liquidation activity in the U.S. and Canada during 2023 and continued levels of retail liquidation activity in Europe. Prospects in Europe continue to be promising with a strong pipeline of opportunities as retailers continue to feel the effects of poor sales, reduced consumer spending and rising interest rates.

Turning to our Financial Consulting segment which includes B. Riley Advisory Services and our real estate brokerage practice, revenues increased 35% to $134 million in 2023, up from $99 million in 2022, primarily driven by an increase of bankruptcy and litigation consulting assignments and appraisal engagements and real estate restructuring projects. B. Riley Advisory Services maintained strong and steady growth throughout 2023. The fourth quarter saw another record revenue period for our legacy GlassRatner consulting business, along with increased revenues from appraisal. Momentum is continuing into Q1. This has been the strongest start to the year in our appraisal business' history as demand from asset-based lenders remains strong. Similarly, in our legacy GlassRatner business, bankruptcy and restructuring mandates continue to increase.

Our Forensic and Litigation Group has a strong pipeline heading in 2024 and we are looking to hire senior practitioners to support demand and continued growth in this Group. Our Canadian affiliate, Farber which we added last year, has also seen increased activity in its insolvency and restructuring practice and we continue to build our domestic interim management and executive search practice to complement Farber's established niche in this space. Turning to our Communications segment. On a combined basis, our Communications segment contributed revenues of $82 million and $6 million of segment income for the fourth quarter. For the full year, revenues increased 43% year-over-year to $338 million in 2023, up from $236 million. Segment income increased 15% to $35 million in 2023 from $30 million in the prior year.

As Bryant mentioned earlier, we formed this business and acquire these companies on a cost basis, in line with our investment thesis and stated strategy to maximize cash flows to our platform. This business leverages the strength of our operational capabilities and has continued to provide steady cash flows to our platform since inception. We continue to look for companies with similar characteristics that can add and leverage the operational capabilities of this Group. Turning to our Consumer Products segment which reflects results from Targus, as we discussed during our Investor Day, since acquiring the business in late 2022, Targus has been negatively impacted by what is the worst market for the PC and tablet sales since 2006 and 2011, respectively.

While the market is not quite there yet, we are seeing some improvement and we believe that Targus, relative to its peers, is well positioned to gain share as the worldwide leader in this category. Finally, our Brands portfolio which are various investments in fashion brands, including our 6 brands portfolio, Justice, Hurley, BV and Scotch & Soda [ph] which we added in April, dividend income related to our brand equity investments increased to $33 million in 2023, up from $28 million in 2022. As Phil mentioned, our Brand investments and businesses are reported outside of our segments and below the line in corporate and all other. Finally, as Bryant mentioned, we recognize that our diversified platform is unique and complex. But what truly differentiates B.

Riley is our team. Our people are among the best in their industries and continue to demonstrate complete focus and dedication. This has been paramount to both our and our clients' collective success and that is what we are most proud of. With that, we will now open the call up for questions before turning the call back to Bryant for closing remarks.

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