Business
Heritage Global Inc. Announces 2021 Second Quarter Results
SAN DIEGO--(BUSINESS WIRE)-- Heritage Global Inc. (NASDAQ: HGBL) (“Heritage Global,” “HGI” or “the Company”), an asset services company specializing in
About this update from Heritage Global Inc.
[{"type":"text","content":" SAN DIEGO--(BUSINESS WIRE)--\nHeritage Global Inc. (NASDAQ: HGBL) (“Heritage Global,” “HGI” or “the Company”), an asset services company specializing in financial and industrial asset transactions, today reported financial results for the second quarter and six months ended June 30, 2021.\n\nHeritage Global Chief Executive Officer Ross Dove commented, “This was a challenging quarter, characterized by limited asset flow volumes across both our financial and industrial businesses. The auction industry overall saw a slowdown in large transactions in the quarter as clients took a ‘wait and see’ approach to plant closings as they evaluate what the post-pandemic landscape will look like. Similarly, the financial asset side of our business was impacted by the combination of ongoing stimulus payments and hesitancy around the release of non-performing loans into the market. Despite these factors, our experienced team effectively managed through these headwinds to gain market share and achieve continued profitability in the quarter.\n\n“Looking forward, with our visibility today, we are optimistic about asset flow through the balance of 2021, as after a long delay in financial assets coming to market, consumer borrowing is rising significantly and stimulus payments are tapering off, likely leading to the increase of non-performing loans. Our pipeline is robust, and we have also onboarded a strong borrower base for Heritage Global Capital. Furthermore, we expect increased industrial asset flow in the second half of 2021 as large, multi-national corporations look for sustainable lifecycle management as they retire and dispose of obsolete equipment.”\n\nMr. Dove concluded, “We believe we are well-positioned to capitalize as the changing U.S. economy promotes a rising flow of assets in the marketplace. We remain confident in our ability to advance our leadership position and drive growth through the remainder of 2021.”\n\nSecond Quarter 2021 Summary of Financial Results:\n\n\n\n($ in thousands, except per share amounts)\n\n\n\nQuarter Ended\n\n\nJune 30, \n\n\n\nSix Months Ended\n\n\nJune 30,\n\n\n\n\n\n2021\n\n\n\n \n\n\n\n2020\n\n\n\n2021\n\n\n\n \n\n\n\n2020\n\n\n\n\n\nOperating income\n\n\n\n$\n\n\n\n73\n\n\n\n \n\n\n\n \n\n\n\n$\n\n\n\n1,024\n\n\n\n \n\n\n\n$\n\n\n\n1,119\n\n\n\n \n\n\n\n \n\n\n\n$\n\n\n\n1,118\n\n\n\n \n\n\n\n\n\nNet i...