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, Inc. (NASDAQ:HGBL) Q3 2024 Earnings Conference Call November 7, 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 Capital Markets Michael Diana - Maxim Group Chad Stauffer - Private Investor Sam Namiri - Ridgewood Investments Operator Good afternoon, ladies and gentlemen. Welcome to the Heritage Global Inc. Third Quarter 2024 Earnings Conference Call. [Operator Instructions] This call is be ...

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 ...

Heritage Global Inc. (NASDAQ:HGBL) Q4 2023 Earnings Conference Call March 14, 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 Markets George Sutton - Craig-Hallum Michael Diana - Maxim Group Operator Ladies and gentlemen, greetings, and welcome to the Heritage Global Fourth Quarter and Year-End 2023 Earnings Conference Call. At this time all particip ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 001-39471 HERITAGE GLOBAL INC. (Exact Name of Registrant as Specified in Its Charter) Florida 59-2291344 (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer ...

Heritage Global Inc. (NASDAQ:HGBL) Q3 2023 Earnings Conference Call November 9, 2023 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 Markets George Sutton - Craig-Hallum Capital Group Michael Diana - Maxim Group Operator Ladies and gentlemen, greetings, and welcome to the Heritage Global Inc. Third Quarter 2023 Earnings Conference Call. [Operator Instruc ...