Business
Heritage Global Inc. Announces 2020 Second Quarter Operating Results
SAN DIEGO--(BUSINESS WIRE)-- Heritage Global Inc. (OTCQB: HGBL, CSE: HGP) (“Heritage Global,” “HGI” or “the Company”), an asset services company specializing
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”), an asset services company specializing in financial and capital assets, today reported financial results for the second quarter ended June 30, 2020.\n\n\nHeritage Global Chief Executive Officer Ross Dove stated, “We are pleased to report strong financial results for the second quarter of 2020, with net income of $2.0 million, reinforcing the efficacy of our ongoing efforts to leverage our P&L by growing gross profit while managing expenses. Importantly, economic tailwinds are building for Heritage Global, with capital and financial asset transaction activity continuing to grow, as we increasingly enhance our durable competitive advantages, including domain expertise related to deal sourcing and execution, flexibility in working with buyers and sellers to adapt to shifting market dynamics, as well as our strong relationships, compliance infrastructure, and customer service.”\n\n\n“Further, as consumers increasingly face tougher economic conditions related to COVID-19, we have observed the build-up and future sale supply of nonperforming consumer loan volumes increasing, thereby indicating a pending wave of financial asset sales activity. As part of this opportunity, we are increasingly focused on penetrating underserved markets via Heritage Global Capital, our specialty financing platform that provides solutions to small- and medium-sized investors in charged-off and nonperforming asset portfolios and other asset-based lending classes.”\n\n\n“We believe that we remain well positioned to drive strong and sustainable revenue growth, with attractive flow through to our bottom line. Our capital assets auction division is focused on distressed and surplus assets. A prolonged and challenging economic backdrop should result in an increased supply of such assets, as well as rising domestic demand for surplus assets, reflecting disruptions to the global supply chain, particularly those involving manufacturing and other capital assets.”\n\n\n“Stepping back, we have completed the final steps to transform our business by pruning our smaller, underperforming business units, which will enhance our future results and enable management to focus on HGI’s core growth prospects.”\n\n\n“Finally, corporate governance remains a prio...