Heritage Global (HGBL) Q1 2025 Earnings Call May 08, 2025 05:00 PM ET Speaker0 Good day, everyone, and welcome to the Heritage Global Inc. First Quarter twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. Later, you'll have the opportunity to ask questions during the question and answer session. Please note today's call will be recorded and we will be standing by if you should need any assistance. It is now my pleasure to turn today's conference over to John Nesbett o ...

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR For the transition period from to UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q Commission file number: 001-39471 HERITAGE GLOBAL INC. (Exact name of registrant as specified in its charter) (State or Other Jurisdiction of Incorporation or Organiz ...

Financial Data and Key Metrics Changes - The company reported a consolidated operating income of $1.5 million in Q4 2024, down from $4.6 million in Q4 2023 [21] - Adjusted EBITDA decreased to $2.1 million from $4.9 million year-over-year [21] - The company recorded a net loss of $200,000 or one cent per diluted share, compared to net income of $4.9 million or thirteen cents per diluted share in the same quarter last year [22] - Stockholders' equity increased to $65.2 million as of December 31, 2024, up from $61.1 million a year earlier [23] - The company ended the year with no long-term debt and a cash balance bolstered by operations and investment activities [24] Business Line Data and Key Metrics Changes - The industrial assets division reported operating income of $800,000 in Q4 2024, down from $1.6 million in the prior year [16] - The financial assets division reported total operating income of $1.9 million, while the brokerage business recorded $1.7 million, down from $2.7 million in Q4 2023 [18] Market Data and Key Metrics Changes - The company noted a significant increase in defaults and charge-offs, indicating a robust market for auctioneers in the coming months [10][13] - The demand for used equipment is at an all-time high due to supply chain tightening and potential tariff impacts on new equipment [12] Company Strategy and Development Direction - The company is focusing on expanding its warehouse and staffing to meet increased demand and asset flow [8] - M&A efforts are producing multiple prospects, with a focus on capitalizing on opportunities in the current economic environment [9][26] - The company is optimistic about the auction market in 2025, anticipating increased activity due to economic pressures leading to more defaults and asset liquidations [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic challenges and capitalize on market opportunities [14] - The CEO highlighted the importance of maintaining profitability and a strong balance sheet to seize new opportunities [27] - Management acknowledged the challenges faced in 2024 but remains positive about the future, citing a strong pipeline of opportunities [28] Other Important Information - The company repurchased approximately 1.3 million shares in the open market during fiscal 2024, with $3 million remaining under the share repurchase program [25] - A new mortgage loan agreement for $4.1 million was entered into for the company's new corporate headquarters, which will provide expanded office and warehouse space [26] Q&A Session Summary Question: Did you increase any more provisions on the loan book? - Management stated that they have not increased or substantially decreased the reserve against the loan book, maintaining a consistent reserve level [31] Question: What is needed to grow the brokerage business? - The CEO indicated that an increase in defaults would lead to more charge-offs, which would benefit the brokerage business in the future [39] Question: What is the capacity to serve the market now? - The CEO mentioned that the company has expanded its capacity significantly, allowing for more asset relocation and acquisitions [49] Question: Are you able to take advantage of higher interest rates on cash balances? - Management confirmed that they are utilizing short-term vehicles to earn interest income, but are primarily focused on deploying cash into the business [111] Question: What is the current status of non-accrual loans? - Management disclosed that the amount in non-accrual status is approximately $22 million to $23 million [75] Question: How is management compensation structured? - Management compensation is variable and based on performance, with bonuses tied to the company's profitability [89]

Heritage Global (HGBL) Q4 2024 Earnings Call March 13, 2025 05:00 PM ET Company Participants John Nesbett - Founder & PresidentRoss Dove - CEO & DirectorBrian Cobb - Chief Financial OfficerMark Argento - President & Co-FounderGeorge Sutton - Partner- Co-Director of Research Conference Call Participants None - AnalystDavid Marsh - Equity Research Analyst Operator Please note this call may be recorded and I will be standing by if you should need any assistance. It is now my pleasure to turn the conference ove ...

Financial Data and Key Metrics Changes - The company reported a net operating profit of $1.5 million and an EBITDA cash flow of $2 million for the quarter, indicating stable performance despite being perceived as a "blah" quarter [4]. Business Line Data and Key Metrics Changes - Detailed analysis of each revenue stream was emphasized, although specific figures for each line were not disclosed in the provided content [4]. Market Data and Key Metrics Changes - No specific market data or key metrics changes were mentioned in the provided content [4]. Company Strategy and Development Direction and Industry Competition - The company does not focus on quarterly performance, indicating a long-term strategic approach rather than short-term results [4]. Management's Comments on Operating Environment and Future Outlook - Management acknowledged the current quarter's performance as unremarkable but emphasized the importance of looking beyond short-term results [4]. Other Important Information - The call included a reminder about forward-looking statements and the associated risks, uncertainties, and assumptions [2]. Q&A Session All Questions and Answers - No specific questions or answers from the Q&A session were provided in the content [4].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-39471 HERITAGE GLOBAL INC. (Exact name of registrant as specified in its charter) FLORIDA 59-2291344 (State or Other Jurisdiction of I ...

Heritage Global Inc. (NASDAQ:HGBL) Q2 2024 Earnings Call Transcript August 8, 2024 5:00 PM ET Company Participants John Nesbett - IR, IMS IR Ross Dove - CEO Brian Cobb - CFO Conference Call Participants Mark Argento - Lake Street Logan Lillehaug - Craig-Hallum Operator Good day, everyone, and welcome to the Heritage Global Inc. Second Quarter 2024 Earnings Call. At this time all participants are in a listen-only mode. Later, you'll have the opportunity to ask questions during the question-and-answer session ...

Financial Performance - Total revenues for Q2 2024 were $12.023 million, a decrease of 8.2% from $13.098 million in Q2 2023[6] - Services revenue for the first half of 2024 was $17.464 million, down 13.0% from $20.055 million in the same period of 2023[6] - Net income for Q2 2024 was $2.497 million, compared to $2.779 million in Q2 2023, reflecting a decrease of 10.1%[6] - Operating income for the first half of 2024 was $6.102 million, a decrease of 12.8% from $6.995 million in the same period of 2023[6] - Net income decreased from $5,608 million to $4,296 million, representing a decline of approximately 23.4%[17] - The company reported a basic net income per share of $0.07 for Q2 2024, unchanged from Q2 2023[6] - Consolidated operating income for the six months ended June 30, 2024, was $6.102 million, down from $6.995 million in the same period of 2023[65] Assets and Liabilities - Total current assets increased to $35.935 million as of June 30, 2024, up from $26.292 million at the end of 2023, representing a growth of 36.5%[4] - Total assets reached $90.001 million as of June 30, 2024, compared to $83.168 million at the end of 2023, marking an increase of 8.8%[4] - The company’s total liabilities increased to $24.188 million as of June 30, 2024, compared to $22.088 million at the end of 2023, an increase of 9.5%[4] - The company’s total assets as of June 30, 2024, were $54,245,000, reflecting an increase from the previous balance of $51,233,000[15] - The company’s total liabilities decreased from $239,893,000 to $228,000,000, indicating a reduction of approximately 4.6%[15] Stockholders' Equity - Stockholders' equity rose to $65.813 million as of June 30, 2024, up from $61.080 million at the end of 2023, indicating a growth of 7.0%[5] - Total stockholders' equity increased to $65,813,000 as of June 30, 2024, compared to $61,080,000 as of December 31, 2023, reflecting a growth of 7.1%[5] - The accumulated deficit decreased to $(228,730,000) as of June 30, 2024, from $(233,026,000) as of December 31, 2023[5] Cash Flow - The company generated net cash provided by operating activities of $7,730,000 for the six months ended June 30, 2024, compared to $6,663,000 for the same period last year, reflecting an increase of 16%[17] - The company experienced a net cash used in investing activities of $5,507,000 for the six months ended June 30, 2024, compared to a net cash used of $7,992,000 for the same period last year, indicating an improvement[17] - Cash and cash equivalents at the end of the period rose to $24,583 million from $15,035 million, an increase of about 63.5%[17] Credit Losses and Allowances - The Company held a gross balance of investments in notes receivable of $35.2 million as of June 30, 2024, with one borrower's note balance comprising approximately $23.1 million, or 66% of the total[27] - The Company's allowance for credit losses related to notes receivable was $0.5 million as of June 30, 2024, down from $0.7 million as of December 31, 2023[30] - The allowance for credit losses related to the restructured loans was $1.1 million as of June 30, 2024, up from $1.0 million as of September 30, 2023[24] - The Company increased its allowance for credit losses related to its largest borrower experiencing financial difficulties, resulting in an allowance of $1.0 million as of September 30, 2023[24] - The Company has no historical accounts receivable credit losses, maintaining a reserve for credit losses of approximately $0.1 million as of both June 30, 2024, and December 31, 2023[28] Share Repurchase and Stock Options - The company has approximately $3.2 million remaining under its share repurchase program, which allows for the purchase of up to $4.0 million in common shares by June 2025[19] - The company had 2,258,850 outstanding stock options with a weighted average exercise price of $1.72 and an aggregate intrinsic value of approximately $1.998 million[38] - The company recognized stock-based compensation expense related to common stock options of $0.3 million for both the six months ended June 30, 2024, and 2023, with $1.1 million of unrecognized stock-based compensation expense expected to be recognized over 2.1 years[38] Joint Ventures and Investments - The company reported net income of $5,107 thousand from HGC Origination I LLC and HGC Funding I LLC for the six months ended June 30, 2024[42] - The company recognized approximately $1.3 million in earnings from equity method investments related to KNFH II LLC in Q2 2024[51] - The company’s operating income from joint ventures for the six months ended June 30, 2024, was $5,107 thousand, compared to $2,226 thousand for the same period in 2023[42] Debt and Financing - The Company modified its 2021 Credit Facility, extending the maturity date to October 27, 2024, with an interest rate of Wall Street Journal Prime rate plus 1.00%, not less than 6.75% per annum[59] - The Company entered into a new $7.0 million Term Loan under the 2023 Credit Facility, repayable until April 27, 2028, with a variable interest rate based on the Wall Street Journal prime rate plus 0.250%[61] - The outstanding balance of the Term Loan as of June 30, 2024, was $5.7 million, with $1.3 million classified as current and $4.4 million as non-current[61] - Total third-party debt decreased from $7,228 million as of December 31, 2023, to $6,376 million as of June 30, 2024, a reduction of approximately 11.8%[57] Operational Segments - The company’s reportable segments include Auction and Liquidation, Refurbishment & Resale, Brokerage, and Specialty Lending, indicating a diversified operational structure[18] - The Industrial Assets Division reported total operating income of $2.125 million for the three months ended June 30, 2024, compared to $1.451 million for the same period in 2023[65] - The Financial Assets Division reported total operating income of $2.668 million for the three months ended June 30, 2024, compared to $2.723 million for the same period in 2023[65]

Heritage Global Inc. (NASDAQ:HGBL) Q1 2024 Results Conference Call May 9, 2024 5:00 PM ET Company Participants John Nesbett - Investor Relations Ross Dove - Chief Executive Officer Brian Cobb - Chief Financial Officer Conference Call Participants Mark Argento - Lake Street Capital George Sutton - Craig-Hallum Operator Ladies and gentlemen, greetings, and welcome to the Heritage Global Inc. First Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will c ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-39471 HERITAGE GLOBAL INC. (Exact name of registrant as specified in its charter) (State or Other Jurisdiction of Incorporation or Organiz ...