Business
Heritage Global Inc. Announces 2020 First Quarter Operating Results
SAN DIEGO--(BUSINESS WIRE)-- Heritage Global Inc. (OTCQB: HGBL, CSE: HGP) (“Heritage Global,” “HGI” or “the Company”), a diversified financial services
About this update from Heritage Global Inc.
[{"type":"text","content":" SAN DIEGO--(BUSINESS WIRE)--\nHeritage Global Inc. (OTCQB: HGBL, CSE: HGP) (“Heritage Global,” “HGI” or “the Company”), a diversified financial services company providing asset-based acquisition, disposition, valuation, and lending services, today reported financial results for the first quarter ended March 31, 2020.\n\n\nHeritage Global Chief Executive Officer Ross Dove stated, “The first quarter was characterized by unprecedented uncertainty and volatility related to the COVID-19 pandemic. First and foremost, the health and safety of our employees, partners, and clients remain our top priority, and we have implemented support measures including working remotely.”\n\n\n“Turning to our financial results for the quarter, we reported breakeven net income, as both buyers and sellers adjusted to the shifting macroeconomic backdrop. More importantly, we remain well positioned as we have entered into a more challenging economic environment. Our asset liquidation business is highly concentrated in distressed and surplus assets, and we expect that there will be an increased supply of such assets as we move forward. Indeed, leading indicators continue to point to capital asset auction participation, surplus inventories, and nonperforming loan transactions, boding well for our related advisory (NLEX) and financing (Heritage Global Capital) businesses.”\n\n\n“Heritage Global Capital (HGC), our specialty financing platform providing solutions to small- and medium-sized investors in charged-off and nonperforming asset portfolios and other asset-based classes, recently closed on an $80 million senior secured credit facility with a major New York City-based investment advisor. The agreement establishes a two-year facility to strategically fund loans to purchase charged-off consumer debt portfolios and supplements a previously formed $6 million revolving credit facility with an alternative asset manager focused on asset-based lending transactions. Looking ahead, HGC will serve as an ideal platform to offer funding solutions in a growing but underserved market, and further diversifies and enhances the firm’s earnings power across cycles. To date, HGC has funded $7.5 million in the aggregate, across ten transactions.”\n\n\n“Finally, we maintain a strong and liquid balance sheet, a favorable debt profile, and an untapped $5.0 million credit facil...