Business
Heritage Global Inc. Delivers Continued Sequential Growth and Its Strongest Operating Income of the Year in Q4 2021
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 fourth quarter and year ended December 31, 2021.\n\nHeritage Global Chief Executive Officer Ross Dove commented, “We drove continued momentum in fourth quarter 2021, with sequential improvement across key financial metrics as compared to third quarter 2021. Fourth quarter operating income grew more than 160% to $1.4 million as compared to $0.5 million in the third quarter of 2021 and net income more than doubled to $1.0 million as compared to $0.5 million in third quarter 2021. It is important to note that while operating income was lower than the previous year, the fourth quarter of 2020 included $2.3 million in net profit related to our first completed real estate transaction from our Huntsville partnership holdings.\n\n“As we’ve previously discussed, we are well positioned in both our Financial Assets Division and in our Industrial Assets Division. On the Financial Assets side of our business, during the past 18 months there have been delays in charge-offs coming to market, as consumers used stimulus money to pay down loans. However, consumer borrowing is on the rise as people resume historical shopping and travel behaviors. During fiscal 2022, we anticipate a significant uptick in the volume of non-performing loans coming to market, and we’re positioned to benefit from that volume.\n\n“In our Industrial Assets Division, we’re encouraged by the opportunities we’re seeing as our client base focuses not just on profitably disposing of surplus equipment and assets, but the environmentally sound disposal of these assets. As our manufacturing and industrial clients focus on sustainability, we expect to see more equipment go to auction rather than to the landfill – which is good for our business and good for the planet,” stated Mr. Dove.\n\nMr. Dove concluded, “At Heritage Global Capital, we continue to work with an active and growing group of borrowers, and our pipeline is strong. We’re pleased to have closed 2021 with another profitable quarter, and as the lending and spending landscape continues to improve, we expect to see continued momentum as we move through 2022.”\n\nFourth Quarter & Year ...