Business
Heritage Global Inc. Announces 2021 Third 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 third quarter and nine months ended September 30, 2021.\n\nHeritage Global Chief Executive Officer Ross Dove commented, “Asset flow remained relatively low in the quarter on both sides of our business, resulting in performance that is below 2020 levels. That said, we reported encouraging sequential improvement in our Industrial Assets Division and remain well positioned with the Financial Assets Division for the expected increase in non-performing loans entering the market in 2022. Industrial Asset Division operating income increased to $0.7 million from $0.4 million in Q2 of this year. We are increasingly optimistic about volume improving as we move into 2022, as companies get more comfortable with the current pandemic landscape and optimizing their liquidation of surplus assets with a growing ESG mindset. Operating income in the Financial Assets Division remained relatively flat from Q2 due to the ongoing decline in non-performing loans currently available in the market. That said, (1) the extended delay in charged off financial assets coming to market, (2) the recent increase in consumer borrowing and (3) the wind down of stimulus payments, together should lead to a meaningful recovery in the volume of non-performing loans coming to market in 2022 and beyond.”\n\nMr. Dove continued, “Our acquisition of ALT during the quarter was an important strategic step for us, further strengthening our Industrial Asset Division. The addition of ALT enhances our service offering in the biotech and pharma sectors, which has been our most important vertical on the industrial side of the business over the past decade. The integration of ALT is going well and adds real strength to our increasing client base seeking ESG-oriented solutions for their surplus assets. In summary, this “bolt-on acquisition” has positioned us to be the clear leader in the bio and pharma asset disposition sector.”\n\nMr. Dove concluded, “Our Heritage Global Capital pipeline is robust, and our approved group of borrowers is strong. HGI achieved yet another profitable quarter and continues to improve our market position, which will ben...