Business
Heritage Global Inc. Announces Strong 2020 Third Quarter Operating 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 ended September 30, 2020.\n\nHeritage Global Chief Executive Officer Ross Dove commented, “Heritage had strong results for the third quarter of 2020, highlighted by net income totaling $1.3 million consistent with the third quarter of 2019 and 28% year-over-year growth in Adjusted EBITDA, which we achieved despite ongoing macroeconomic and political uncertainty. The results reinforced the Company’s unique and differentiated business model, with robust growth across our industrial assets business. Looking ahead, we believe rising demand for the re-commerce of used and surplus equipment bodes well for sustained near term performance and profitability of our industrial assets segment, while we expect accelerating volumes and revenue from the financial assets side of the business, driven by an expected step up in the release of nonperforming loans into the market in 2021.”\n\n“Stepping back, Heritage Global recently completed two important milestone accomplishments that we believe will meaningfully enhance the Company’s growth prospects and drive long-term shareholder value. First, Heritage Global’s common stock was uplisted to the NASDAQ Stock Market, which enhances our visibility within the investment community, thereby increasing the liquidity of our stock and broadening our institutional shareholder base over time. Second, we completed an underwritten public offering of common stock, raising $9.1 million of net proceeds that will be used to expand the businesses of Heritage Global Capital and Heritage Global Partners.”\n\nThird Quarter 2020 Summary of Financial Results:\n\n\n\n($ in thousands, except per share amounts)\n\n\n\nQuarter Ended\n\n\nSeptember 30,\n\n\n\nNine Months Ended\n\n\nSeptember 30, \n\n\n\n\n\n2020\n\n\n\n \n\n\n\n2019\n\n\n\n2020\n\n\n\n \n\n\n\n2019\n\n\n\n\n\nRevenue\n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n\n\nServices revenue(1)\n\n\n\n$ 6,060\n\n\n\n \n\n\n\n$ 5,207\n\n\n\n$ 15,713\n\n\n\n \n\n\n\n$ 14,950\n\n\n\n\n\nAsset sales(2)\n\n\n\n1,506\n\n\n\n \n\n\n\n1,415\n\n\n\n2,214\n\n\n\n \n\n\n\n5,647\n\n\n\n\n\nTotal revenue\n\n\n\n7,...