Good afternoon, and welcome to B. Riley Financial's second quarter 2021 earnings call. Earlier today, B. Riley issued a press release and presentation detailing its financial results for the second quarter. Copies are available in the Investors section of the company's website at ir.brileyfin.com. As a reminder, today's call is being recorded. An audio replay will also be available on the company's website later today. Joining us today from B. Riley are Bryant Riley, Chairman and Co-Founder; Co-CEO, Tom Kelleher, Co-Founder and Co-CEO, and Phillip Ahn, CFO and COO. After management's remarks, we will open the line for questions. Before we conclude today's call, I will provide the necessary cautions regarding forward-looking statements. I will now turn the call over to Mr. Bryant Riley. Mr. Riley, please proceed. Thanks. Welcome, everyone. I'll start with a brief overview on the current state of our business and where we see opportunities ahead. Phillip Ahn, our CFO and COO, will cover key financial metrics, and then our Co-CEO, Tom Kelleher, will share more detail about our individual business units. For the second quarter, we reported total revenues of $336.8 million and total adjusted EBITDA of $124.9 million. Our solid performance demonstrated continued strength from across our businesses, with operating revenues and operating EBITDA doubling on a year-over-year basis. Over the last few years, we have worked to establish a steady base of recurring revenue businesses with enhancements to our consulting and appraisal, wealth management, brands, and principal investment businesses. Together, these steady -state businesses generated revenues in excess of $135 million during the quarter and continue to provide steady EBITDA and cash flow for our overall platform. Enhancing the results from our steady businesses is the earnings upside created by investment banking, which has benefited from momentum in capital markets, and our liquidation business, which continues to be profitable in spite of the slowdown in retail bankruptcy filings. At the same time, we continue to leverage our platform to source opportunistic investments that are extremely proprietary to B. Riley. This strategy has delivered value not only to us but also to our partners and shareholders. We are seeing more and more of these types of opportunities than we ever have. As we continue to invest in further enhancing our platform, we are always on the lookout for complementary businesses that can expand our reach and market share. A recent example of this is our acquisition of National Holdings, which we are continuing to integrate into our business. We're extremely pleased with this team of talented professionals. Similarly, our new colleagues are appreciating the breadth of product that our platform offers. In expanding our platform, both through key hires and acquisitions, we've also created increased synergies and cross-selling opportunities. Importantly, our diversified business model continues to deliver for us and our stakeholders. We believe there will be more opportunities for us to capitalize in the near future. We are often asked if there are any gaps in our business. Asset management and the build-out of fixed income continue to be a key focus for us as a natural complement to our existing businesses. We will continue to take advantage of market opportunities in our core segments while seeking to establish additional recurring revenue streams that are both non-correlated and countercyclical. Taken together, our platform strategy has allowed us to build a solid balance sheet and lower our cost of capital while enabling us to return $8.50 in common stock dividends to shareholders over the last three quarters. As always, our number one focus is performing for our employees, clients, partners, and our shareholders. As we look ahead, we continue to see multiple pathways to grow shareholder value. With that, I'll turn the call over to Phillip Ahn to discuss some financial metrics from the quarter. Phillip? Thanks, Bryant. On a consolidated basis, B. Riley reported total revenues of $336.8 million for the second quarter, which represents a year-over-year increase of 26% compared to $266.5 million for the prior year period. Net income available to common shareholders was $73.9 million, or $2.58 per diluted share. This compares to $82.8 million, or $3.07 per diluted share, in the prior year period. Our second quarter results included operating revenues of $304.1 million, which was up 100% year-over-year, and operating adjusted EBITDA of $92.1 million, which was up 97% year-over-year. Our strong operating results were further enhanced by our second quarter investment gains of $32.7 million, which relate to both realized and unrealized gains in our investments. In terms of our reportable segments, Capital Markets is our largest segment and includes our investments and operating results from investment banking, institutional brokerage, and our fund management businesses. Excluding our investment gains, operating revenues for our capital market segment increased to $151.5 million for the quarter, up 78% year-over-year. Segment operating income was $74.7 million, up 153% year-over-year. Our wealth management segment revenues increased to $90.3 million compared to $15.8 million in the prior year period. The majority of this increase was due to the addition of National Holdings for the full quarter, which we acquired in February of this year. Auction liquidation revenues increased to $17.3 million, up 109% year-over-year, and segment income was $3.6 million. Financial consulting revenues increased to $23.7 million, up 26% year-over-year, and segment income was $4.2 million. Our principal investment companies, magicJack and United Online, contributed revenues of $19.6 million and segment income of $7.3 million. Lastly, our brand segment generated revenues of $4.4 million and segment income of $3 million related to the licensing of brand trademarks. As a reminder, adjusted EBITDA in our metrics for operating and investment results are non-GAAP financial measures. For a definition of these terms and for reconciliation to the nearest GAAP measures, please refer to our earnings release. Additional details related to our operating metrics can also be found in the financial supplement to be located on our investor relations website. Now turning to our highlights from our balance sheet. At June 30th, B. Riley Financial had $297 million in unrestricted cash and cash equivalents, approximately $1 billion in net securities and other investments owned, and $266 million of loans receivable, net of loans participation sold. At quarter end, we had a total cash and investments balance of approximately $2 billion, which includes approximately $53 million of other equity investments included in our prepaid and other assets. Net of debt, B. Riley Financial's cash and investments totaled approximately $568 million on June 30th. In terms of other recent developments, in June, we closed a $280 million senior credit facility comprised of a four-year, $200 million term loan and an $80 million revolver. Earlier this week, we completed the full redemption of our 7.25% senior notes due 2027 for approximately $125 million, including accrued interest. These activities are consistent with our goal to lower our cost of capital while augmenting our capital base as we continue to pursue multiple opportunities and seek to grow shareholder value. To that end, we declared a total quarterly dividend of $2 per common share. This includes our regular $0.50 quarterly dividend and a special dividend of $1.50. The quarterly dividend will be paid on or about August 26th to stockholders of record as of August 13th. That completes my financial summary. Now I'll turn the call over to our Co-CEO, Tom Kelleher, to share a few quarterly highlights from our individual operating units. Tom? Thanks, Phil. I'd like to start by recognizing the ongoing efforts and dedication of our people. Our continued success is due to the exceptional team of professionals across all of our operating groups. In terms of highlights from our individual businesses, our strong quarter was driven by several significant investment banking transactions, including what we call platform deals, or those that involve multiple parts of our business. As Bryant noted, capital markets momentum contributed to the quarter with particular strength in our ATM and SPAC businesses. We continue to see an expansion in the number and types of companies that select B. Riley for their capital raising needs, be it with our ATM group or in a more traditional form. While the SPAC market saw a pullback during Q2, our SPAC business continues to be robust with several of our issuers actively pursuing targets as well as multiple new mandates in the pipeline. A few noteworthy transactions completed during the quarter include a $310 million common stock debt and preferred solution for Synchronoss Technologies, a $300 million follow-on equity offering for Telos Corporation, leading AMC Entertainment's $587 million at-the-market offering in June, two separate private placements totaling $105 million for Stronghold Digital Mining, whose S-1 was publicly filed earlier this week, and a $100 million preferred stock offering for Babcock & Wilcox. In other parts of our institutional broker-dealer division, securities lending saw strong performance during Q2 with a focus on the transportation, software, technology, special pharma, and therapeutic sectors. Our SPAC trading desk also continues to be active with a high level of new issuers coming to market. In equity research, we added three publishing analysts in Q2, proactively entering new verticals in gaming and cryptocurrency and expanding our healthcare team. We remain committed to our research roots and continue to invest in resources to help our clients and partners best capitalize on proprietary small and mid-cap investment opportunities. To that end, next month, we will be hosting an investor conference in Santa Monica to connect our research company management teams with many of the country's best institutional managers. This event marks our return to in-person corporate access, albeit in a much smaller format and in compliance with CDC guidelines. Turning to wealth management, Q2 was the first full quarter since our acquisition of National Holdings. As Bryant noted, we continue to be extremely pleased with the quality of this team and its professionals. At the same time, revenue generation from our legacy wealth business also continues to be strong. On a combined basis, our wealth management affiliates oversee approximately $32 billion in client assets. As we continue to work towards fully integrating our wealth management affiliates and enhancing our client service offerings, recruiting remains a key focus. Earlier this week, we announced the opening of a new branch location in Virginia with a new group of advisors joining the firm. This new branch stands to enhance our long-standing presence and relationships in Virginia and the greater Mid-Atlantic region. With our platform's continued growth, B. Riley has become a leading choice for top advisor teams looking for differentiated solutions to best serve their clients' needs. Turning to financial consulting, revenue growth and momentum in our advisory services division continued in Q2. We've had success adding new service lines to our broader advisory business, with the most recent additions being a risk and operations management group. Our compliance risk and resilience team was formed in January and has already contributed meaningfully despite being with the firm for a very short time. This has been a synergistic addition to all of our service lines as cyber risk management, business continuity, and IT disaster recovery remain in high demand for customers across our enterprise. Overall, our advisory business continues to perform steadily while also serving as a leading source of internal referrals to other parts of our platform. We are continuing to seek new hires in complementary businesses that can enhance our reach and lines of service. In retail liquidation, activity remains slow compared to our previous record levels. Several of our recent engagements have been primarily focused on existing client relationships. As the fundamental shift in traditional retailing continues to accelerate, we believe we are well-positioned, as purging of excess inventory and store lease rationalization will continue to be in the focus for retailers in the years ahead. In our real estate division during the second quarter, we completed the sale of a retail property in Northern Chicago and the sale of Remington's 800,000 sq. ft. manufacturing campus in Huntsville, Alabama, while continuing to work on other ongoing projects. Finally, turning to principal investments in our brand segments, magicJack and United Online continued to perform above expectations, serving as an important contributor of recurring cash flow to our platform. We expect to obtain the necessary regulatory approvals to complete the second tranche of our investment in Lingo in the coming months. The addition of Lingo should meaningfully enhance results in our United Online and magicJack segments in future quarters. In our brand investments business, volume across all brands has been strong, following a period of pent-up demand created by the pandemic. The Hurley brand has been in the number one top spot in specialty surfing for 18 weeks in a row. Carissa Moore, one of Hurley's sponsored athletes, just won the first ever Olympic gold in women's surfing for Team USA at the 2020 Tokyo Olympics. Earlier this month, Walmart announced the addition of the Justice brand collection to 2,400 of its stores nationwide and to walmart.com for back-to-school shopping. With these exciting developments, we are optimistic we will see continued growth in our brand's business for the remainder of 2021. Finally, our principal investment team is managing several other minority investments as we continue to seek additional opportunities to enhance our recurring cash flow and maximize the return on our capital. In summary, in echoing Bryant's comments at the top of the call, we continue to be confident and excited about our business. The success, momentum, and growing recognition of the platform have been very gratifying. However, we know there is always more to be done. With that, we'll now open lines for questions and then turn the call back over to Bryant for closing remarks. Thank you; we will now begin the question-and-answer session. If you wish to ask a question, please press star and one on your touch-tone telephone to join the question queue. You will share a tone acknowledging your request. If you are using the speakerphone, please pick up the handset before pressing the release. To remove yourself from the question queue, you may press star and two. If you would like to ask a question at this time, please press star and one. We will pause for a moment as callers join the queue. The first question comes from Sean Haydon with Charles Lane Capital. Please go ahead. Congrats on another great quarter. Thanks, Sean Haydon. Real quick, on the wealth management operating income, were there any one-time items in the quarter that we should be aware of? Phillip, you want to answer that? Yeah. The only thing was sort of extraneous, although this is below the line. We did receive a forgiveness of a PPP loan that they took out. That's certainly below the line. Nothing extraordinary outside of that. That's all I got. Again, congrats and talk to you next quarter. Great. Thank you for your support. The next question comes from Brian Rohman with Boston Partners. Please go ahead. Good afternoon. Thank you for taking my question or questions. First question I had was following up on the previous person's query on the wealth management business. I'm just looking at the release. Year over year, it goes from $15 million - $87 million. Almost all of that is the acquisition? Yeah. Yeah. The vast majority is the acquisition. Okay. I had the same general question, which was, it shows up that that business, wealth management, lost almost $4 million in operating income. What sort of operating margin do you think it normally should operate at? Phillip, you want to start and provide a little bit more clarity on the operating income with those two divisions together? Yeah, sure. Obviously, we're still going through some integration with National. I think in general, when we acquired Wunderlich, it did take several quarters to get the operational performance in and around where we wanted it to be. Okay. Yeah. There is some time that's going to take place. I think I'll let Bryant sort of speak to the integration. Yeah. But— Yeah. The way that we look at the business is, if you look at the B. Riley Wealth business, which was chugging along at roughly $70 million-$75 million. That business has got itself up to 15% EBITDA margins. Okay. National is going to be lower. It's because they've got an independent aspect to them, so they're a little bit lower margins, but that $200 million-$240 million should be 10% EBITDA margins. We should be able to get another $10 million in synergies. That's probably a year out. Those are the kind of numbers we expect once we're fully integrated. We're starting to see a lot of progress towards that, and we're also seeing a lot of other benefits. We are seeing the National and the B. Riley Wealth Management's retail team is committing more and more capital to our deals and providing us more bullets when we go out and do bought deals and things like that. We're really happy with that investment and that integration so far. Okay. What you're saying is that the benefits of the deal will become more apparent down the road. Is that correct? There are some one-time things in there, and, yeah, I think you will see the benefits of the deal. Every quarter, you will see incremental benefits to the bottom line, but also just to the business. I can't overstate how important it is to be able to have increasing distribution, particularly in our equity and debt deals. That's a really big advantage for us when we are backstopping deals and know that the wealth management group is there for a chunk of that as well as obviously our institutional distribution. Okay benefit every quarter going forward. Next question. You can't be an investment bank, a public investment bank, and report earnings without talking about your backlog. Some of your brethren have talked about a little bit of a slowdown in investment banking, particularly capital raising, particularly in the SPAC space. Can you comment on your experience? Yeah. We raised two SPACs last quarter. We've already raised one this quarter. I think we'll do two or three this quarter. In terms of SPACs that we've underwritten that are out, either have signed deals or are looking for deals; that's obviously at an all-time high; there's a lot of backlog there. As you know, we have not recognized when a deal has been announced but not closed. We recognize the remaining fee when that closes. There's some backlog there. In terms of general capital markets, we have not seen any slowdown. Our backlog is as strong as it has ever been, probably stronger. Now, it's capital markets; those windows open. Yeah and close, and they can open for a long time. Barring anything there, I would say that you'll see on our deck, obviously there's meaningful market share gains. We're really busy, and I think we'll continue to be busy, and we'll continue to print a lot of deals as long as the markets continue to be fine. All right. That's great. Thank you for taking my questions. Thank you. Appreciate it. Once again, if you would like to ask a question at this time, please press star and one. We will pause for a moment as callers join the queue. The next question comes from Paul Dwyer with Punch & Associates. Please go ahead. Hey, guys. Good afternoon, and thanks for the time today. Hey, Paul. Hey. Maybe to start, you're commenting about the steady -state business being about $135 million this quarter. Could you just elaborate on kind of how you think about the steady -state business's growth overall and kind of the overall level of profitability that provides the firm? Sure. I think we're around a $125 million annualized EBITDA run rate on that steady business. Some is growing. You've got the old advisory business, which we always called the old Glass revenue. You'll remember we acquired them at appraisal. Some are declining, which is, we still own United Online. United Online, somewhat flat. Some is growing more than we anticipated, which is the brand side of the business. We commented on Hurley and Justice but also the other six brands. Those things have bounced back meaningfully. You put all that together, and I think you have to think of that as steady EBITDA and steady revenues on assets we acquired at really good multiples. We'll add Lingo, which will provide another $15 million a year in EBITDA to us. We'll own 80% of that business when that gets approved. That's not in our numbers currently. The way we think about that is that it pays a lot of our interest, pays a lot of our overhead, and allows us to have these other episodics. We always say the broker- deal is episodic. Obviously, it's not nearly as episodic as the liquidation business. That's how we think about it. We're really happy with that side of the business, and we'll continue to try and find interesting opportunities that are not bake-offs. They're proprietary to us, and we usually move really quickly. We have the infrastructure in place to run those businesses. I think it's just a great way to manage the more cyclical sides of our business to have that steady cash flow. Yeah, absolutely. Just what does the pipeline look like in terms of non-auction deals that the principal investments team can be looking at today, and what kind of size of deals are in the pipeline? We have, I would say, four or five deals that are kind of actively being discussed, and they're all in the $25 million-$75 million kind of level. Those, particularly if they kind of fit within what we're doing, whether it's on the telecom side. Those are types of acquisitions that you just don't have a lot of competition for, especially if they're flat businesses. Our EBITDA multiple requirements and buyouts are going to be still low, 3x - 5x. We want to multiply those at 3x - 5x. Yeah, I think the larger you get, the more active you get, the more you see those deals. We've become the go-to group for those kinds of deals. We're seeing a fair amount. Nothing gigantic, though. I would say Justice was a meaningful purchase for us. Lingo is a decent-sized purchase. Hurley was meaningful last year, but nothing super large. Okay. Great. One follow-up question on the capital markets. Can you just spend a little time reminding me of the fixed versus variable cost structure of that business and then kind of how you think about protecting on the downside in case capital markets do slow down a bit? Although it doesn't sound like you're seeing that yet. Our breakeven has been the same for the last two years. You could say that's good or bad. Like, why aren't we growing more? Why aren't we adding more overhead to the capital market side? I would say to you that we've been doing this for 25 years. Many of the people that manage our businesses here have been, you know, some of them, obviously, have been here 15 + years, and we are positioned right. We added three analysts last quarter. I think we mentioned that. Maybe this is because it started as a private company with a little amount of capital. We've been the firm with a lower fixed overhead and a higher variable. When times are good, you can look at that and say, Boy, I wish you had paid salaries and bonuses, because you'd probably get a little bit more net margins. When times are tougher, you're happy about that. Look, we love the fact that the majority of our bankers and our salespeople are making more money than they ever did. They deserve it. They are the engine that drives all of this, and so we will stick with that. At the same time, it blows me away that we are doing $60 million kind of quarters with the same people that we've had here for a long time and adding other valuable people. I just think it's a real testament to the quality of the people we've had here. Yeah. Okay, perfect. Last question is then, on the balance sheet side, what else are you thinking about over the next two or three years here in terms of opportunities to lower your cost of capital? Well, that's a tricky question because we have gone the baby bond market way, right? We just love that product for us. It's unsecured. We obviously just added a $280 million facility with Nomura at a rate in the 4x. Most recent baby bonds were 5.25x. My guess is that as we continue to get into the 5x with baby bond issuances and take out some of the 7x, I will feel really good about that cost of capital. Now, I understand we're not a bank. We don't have some of the same benefits that others have. We don't have deposits. The NIM that we get when we put money out to public companies—and you've probably seen some of those transactions—is, you're talking about 700%, 800% with fees. Would we like it lower and lower and lower? Yes, we feel we're really excited about getting it into the low fives, and we'll continue to just kind of be as aggressive as we can to get the lowest rate we can get. Well, that's it for me. Nice quarter again, and appreciate all the hard work. Thank you. Thanks for your continued support. This concludes your question and answer session. I'd now like to turn the call back over to Mr. Riley for his closing remarks. Thank you, everyone, and thanks for joining us, and I know there are a lot of people from the firm on this call, and I said it in the commentary, but all of this is a testimony to the people that are here and the team that we've built, and I'm super thankful and appreciative and excited to continue this growth and report back next quarter. Thank you, and I look forward to talking in 90 days. Thank you. That's all I have, operators. Thank you. Before we conclude today's call, I will provide B. Riley Financial's safe harbor statement, which includes important cautions regarding forward-looking statements made during this call. Statements made during this call about B. Riley Financial's future expectations, plans, and prospects and any other statements regarding matters that are not historical facts may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors should be aware that any forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those discussed here today. These risk factors include the unpredictable and ongoing impact of the COVID-19 pandemic, as well as the other risk factors explained in detail in the company's filings within the Securities and Exchange Commission. Please refer to these filings for a more detailed discussion of forward-looking statements and the risks and uncertainties of such statements. All forward-looking statements are made as of today, and except as required by law, the company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise. Thank you for joining us today for B. Riley Financial's second quarter 2021 earnings conference call. You may now disconnect.