In This Article:
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Net Operating Profit: $1.5 million for the third quarter of 2024.
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Cash Flow: $2 million in cash flow for the quarter.
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Term Loan Repayment: Fully paid down approximately $5.7 million in July.
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Share Repurchase: Repurchased roughly 600,000 shares in the open market during the third quarter.
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Repurchase Program: Increased to $6 million through June 2025, with $4.1 million remaining as of September 30, 2024.
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Industrial Assets Division Operating Income: $700,000 in the third quarter of 2024, compared to $2.1 million in the prior year period.
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Financial Assets Division Operating Income: $1.8 million for the quarter.
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Brokerage Business Operating Income: $1.7 million, compared to $2.1 million in the third quarter of 2023.
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Lending Business Operating Income: Approximately $200,000.
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Consolidated Operating Income: $1.5 million in the third quarter of 2024, compared to $2.8 million in the third quarter of 2023.
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Adjusted EBITDA: $1.9 million for the quarter, compared to $3.1 million in the prior year period.
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Net Income: $1.1 million or $0.03 per diluted share, compared to $2 million or $0.05 per diluted share in the third quarter of 2023.
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Stockholders' Equity: $66.1 million as of September 30, 2024, up from $61.1 million on December 31, 2023.
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Net Working Capital: $16.2 million as of September 30, 2024.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Heritage Global Inc (NASDAQ:HGBL) reported a net operating profit of $1.5 million and a cash flow of $2 million for the quarter.
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The company has successfully paid down its term loan of approximately $5.7 million and repurchased roughly 600,000 shares in the open market.
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The board of directors approved an amendment to the repurchase program, increasing the maximum aggregate dollar amount of repurchases to $6 million through June 2025.
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Heritage Global Inc (NASDAQ:HGBL) is seeing more first-time clients becoming sellers, indicating potential growth in their market.
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The company is strategically positioned to invest in its core auction and brokerage segments, with a strong available cash position and potential financing capabilities.
Negative Points
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The industrial assets division reported a decrease in operating income to $700,000 from $2.1 million in the prior year period, primarily due to the absence of larger auctions.
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Consolidated operating income decreased to $1.5 million from $2.8 million in the third quarter of 2023.
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Net income dropped to $1.1 million or $0.03 per diluted share compared to $2 million or $0.05 per diluted share in the third quarter of 2023.
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The lending business faced challenges with loans in non-accrual status with its largest borrower, impacting operating income.
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There was a significant concentration risk with one large borrower in the lending segment, which the company acknowledges as a lesson learned.