HERITAGE GLOBAL INC. Raises Target for Full Year 2022 Net Operating Income to Exceed $10.0 Million

Rhea-AI Summary

Heritage Global Inc. (NASDAQ: HGBL) has raised its target for full year net operating income to exceed $10.0 million, up from a previous estimate of $9.0 million. CEO Ross Dove noted a record year driven by a resurgence in consumer spending, boosting both brokerage and lending operations. Strong demand in the Industrial Assets segment and an active auction calendar contributed to this growth. The company plans to report its fourth quarter and year-end results on the week of March 13, 2023.

Positive

• Increased net operating income target to exceed $10.0 million, surpassing previous forecast of $9.0 million.
• Record year driven by resurgence in consumer spending, enhancing brokerage and lending operations.
• Strong demand in the Industrial Assets segment and robust auction calendar contributing to growth.

Negative

• None.

SAN DIEGO--(BUSINESS WIRE)-- Heritage Global Inc. (NASDAQ: HGBL) (“Heritage Global,” “HG” or “the Company”), an asset services company specializing in financial and industrial asset transactions, today announced that it is raising its target for full year net operating income to exceed $10.0 million, increasing its previously stated target of $9.0 million.

Heritage Global’s Chief Executive Officer Ross Dove commented, “2022 has been a record year for us as a resurgence in consumer spending has driven increased volumes and provided significant traction on both the brokerage and the lending sides of our business. Likewise, our Industrial Assets segment has benefited from strong demand and a robust auction calendar. As we move through the final weeks of 2022, we are optimistic about the market dynamics and opportunities we’re seeing, and as a result we are raising our target for full year 2022 net operating income to exceed $10.0 million, which substantially surpasses our best prior annual results of $6.1 million, achieved in 2020. We are energized by our operational execution to date in 2022 and look forward to a strong close to the year.”

Heritage Global intends to report results for the fourth quarter and year ended December 31, 2022 the week of March 13, 2023.

About Heritage Global Inc.

Heritage Global Inc. (“HG”) values and monetizes industrial & financial assets by providing acquisition, disposition, valuation, and lending services for surplus and distressed assets. This aids in facilitating the circular economy by diverting useful industrial assets from landfills and operating an ethical supply chain by overseeing post-sale account activity of financial assets. Specialties consist of acting as an adviser, in addition to acquiring or brokering turnkey manufacturing facilities, surplus industrial machinery and equipment, industrial inventories, real estate, account receivable portfolios, and intellectual property through its two business units: Industrial Assets and Financial Assets.

Definitions and Disclosures Regarding non-GAAP Financial Information

The Company defines EBITDA as net income/loss plus depreciation and amortization, interest and other expense, and provision for income taxes. Adjusted EBITDA reflects EBITDA adjusted further to eliminate the effects of stock-based compensation. Management uses EBITDA and Adjusted EBITDA in assessing the Company’s results, evaluating the Company’s performance and in reaching operating and strategic decisions. Management believes that the presentation of EBITDA and Adjusted EBITDA, when considered together with our GAAP financial statements and the reconciliation to the most directly comparable GAAP financial measure, is useful in providing investors a more complete understanding of the factors and trends affecting the underlying performance of the Company on a historical and ongoing basis. The Company’s use of EBITDA and Adjusted EBITDA is not meant to be, and should not be, considered in isolation or as a substitute for, or superior to, any GAAP financial measure. You should carefully evaluate the financial information, below, which reconciles our GAAP reported net income to EBITDA and Adjusted EBITDA for the periods presented (in thousands).

Forward-Looking Statements

This communication includes forward-looking statements based on our current expectations and projections about future events. For these statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. While the Company believes the forward-looking statements contained in this communication are accurate, these forward-looking statements represent the Company’s beliefs only as of the date of this communication, and there are a number of factors that could cause actual events or results to differ materially from those indicated by such forward-looking statements, including variability in magnitude and timing of asset liquidation transactions, the impact of changes in the U.S. national and global economies, and interest rate and foreign exchange rate sensitivity, as well as other factors beyond the Company’s control. Unless required by law, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements, which speak only as of the date of this release. For more details on factors that could affect these expectations, please see our filings with the Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221212005229/en/

Investor Relations:

John Nesbett/Jennifer Belodeau

IMS Investor Relations

203/972.9200

InvestorRelations@hginc.com

Source: Heritage Global Inc.

FAQ

What is the new net operating income target for Heritage Global Inc. (HGBL) for 2022?

Heritage Global Inc. has raised its net operating income target for 2022 to exceed $10.0 million.

When will Heritage Global Inc. (HGBL) report its fourth quarter results?

Heritage Global Inc. intends to report its fourth quarter and year-end results the week of March 13, 2023.

What factors contributed to the increased income target for HGBL in 2022?

The increase in Heritage Global's income target is attributed to a resurgence in consumer spending, higher volumes in brokerage and lending, and strong demand in the Industrial Assets segment.

How does the new income target for 2022 compare to previous years for HGBL?

The new income target of over $10.0 million for 2022 significantly surpasses the previous best annual result of $6.1 million achieved in 2020.