{"id":758153,"date":"2023-05-11T17:28:32","date_gmt":"2023-05-11T21:28:32","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/heritage-global-inc-achieves-record-net-operating-income-of-3-9-million-and-0-08-earnings-per-share-for-first-quarter-2023\/"},"modified":"2023-05-11T17:28:32","modified_gmt":"2023-05-11T21:28:32","slug":"heritage-global-inc-achieves-record-net-operating-income-of-3-9-million-and-0-08-earnings-per-share-for-first-quarter-2023","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/heritage-global-inc-achieves-record-net-operating-income-of-3-9-million-and-0-08-earnings-per-share-for-first-quarter-2023\/","title":{"rendered":"Heritage Global Inc. Achieves Record Net Operating Income of $3.9 Million and $0.08 Earnings Per Share for First Quarter 2023"},"content":{"rendered":"

<\/p>\n

Heritage Global Inc. Achieves Record Net Operating Income of $3.9 Million and $0.08 Earnings Per Share for First Quarter 2023<\/b><\/p>\n

SAN DIEGO–(BUSINESS WIRE<\/a>)–Heritage Global Inc.<\/a> (NASDAQ: HGBL) (\u201cHeritage Global,\u201d \u201cHG\u201d or \u201cthe Company\u201d), an asset services company specializing in financial and industrial asset transactions, today reported financial results for the first quarter ended March 31, 2023.<\/p>\n

First Quarter 2023 Summary of Financial Results:<\/b><\/p>\n\n\n\n\n\n\n\n\n\n\n
\n

($ in thousands, except per share amounts)<\/i><\/p>\n<\/td>\n

\n

Three Months Ended<\/b><\/p>\n

March 31,<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

2023<\/b><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

2022<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\nOperating income<\/p>\n<\/td>\n

\n

\n$<\/p>\n<\/td>\n

\n

\n3,894<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$<\/p>\n<\/td>\n

\n

\n875<\/p>\n<\/td>\n<\/tr>\n

\n

\nNet income<\/p>\n<\/td>\n

\n

\n$<\/p>\n<\/td>\n

\n

\n2,829<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$<\/p>\n<\/td>\n

\n

\n645<\/p>\n<\/td>\n<\/tr>\n

\n

\nNet income per share \u2013 diluted<\/p>\n<\/td>\n

\n

\n$<\/p>\n<\/td>\n

\n

\n0.08<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$<\/p>\n<\/td>\n

\n

\n0.02<\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n<\/tr>\n

\n

(Non-GAAP Financial Measures)<\/i> (1)<\/sup><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n<\/tr>\n

\n

\nEBITDA<\/p>\n<\/td>\n

\n

\n$<\/p>\n<\/td>\n

\n

\n4,014<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$<\/p>\n<\/td>\n

\n

\n1,008<\/p>\n<\/td>\n<\/tr>\n

\n

\nAdjusted EBITDA<\/p>\n<\/td>\n

\n

\n$<\/p>\n<\/td>\n

\n

\n4,193<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$<\/p>\n<\/td>\n

\n

\n1,114<\/p>\n<\/td>\n<\/tr>\n<\/table>\n\n\n
\n

(1)<\/i><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

EBITDA and Adjusted EBITDA are commonly used non-GAAP financial measures utilized by management as a supplemental tool to evaluate the underlying operating performance of the Company on an ongoing basis and should be considered together with Heritage Global\u2019s GAAP financial measures. Definitions and disclosures regarding non-GAAP financial information including reconciliations are included at the end of the press release.<\/i><\/p>\n<\/td>\n<\/tr>\n<\/table>\n

\nHeritage Global Chief Executive Officer Ross Dove commented, \u201cAs expected, 2023 is off to an exceptional start, demonstrated by our achievement of a record $3.9 million in net operating income in the first quarter, which soundly surpasses our previous quarterly NOI milestone of $3.6 million, reported in the second quarter of 2022. We are benefiting from economic tailwinds in both of our divisions, and from our focus on continuing to execute to maximize the opportunities we are seeing in the marketplace.<\/p>\n

\n\u201cIt is important to note that we are seeing growth across both our Financial Assets and Industrial Assets divisions, and all four of our operating segments are making significant contributions to our overall profitability. In fact, both sides of our business posted more than 200% growth in divisional operating income for the first quarter.<\/p>\n

\n\u201cAs previously mentioned, the current economic landscape is proving favorable for our growth. As consumers continue to increase spending post-Covid, resulting in increased debt on credit cards and loan balances, consumer debt has been climbing, with subsequent increases in the amount of charged-off credit cards and loans materializing. Based on economic indicators, we believe that this environment will continue for some time, positioning our NLEX brokerage and HGC lending businesses to continue to win contracts and benefit from increasing volumes of non-performing loans and credit card accounts. Likewise, as businesses downsize staff and close down operating facilities, our Industrial Assets division is a partner of choice in assisting the responsible disposal or repurposing of surplus equipment and assets. Similar to the lag in loan charge offs, there tends to be a delay from the time a company announces layoffs or closures to the time their assets are decommissioned and auctioned. With our visibility today, we believe that we will see significant activity in our industrial auction division over the next eighteen months.<\/p>\n

\n\u201cAs we move through 2023, we expect to build upon the momentum demonstrated in the first quarter, leading to exciting prospects for our Company. We look forward to leveraging our proven business model, longstanding customer and client relationships, and promising economic tailwinds to drive continued growth and profitability,\u201d Mr. Dove concluded.<\/p>\n

First Quarter 2023 Highlights:<\/b><\/p>\n