WEB NEWS Research
Heritage Global Inc. (NASDAQ:HGBL) ($3.00; $110.7M market cap) announced Q4 2023 results:
Q4 sales of $15.2 million vs $13.8 million in the prior year and in line with analyst estimates of $15.3 million
Q4 non-GAAP EPS of $0.13 vs $0.08 in the prior year and in line with analyst estimates of $0.07
Full year sales of $60.5 million vs $46.9 million in the prior year
Full year EPS of $0.33 vs $0.29 in the prior year
“2023 was the best year in our history, as demonstrated by our ability to achieve full-year 2023 operating income of $14.3 million. During the year, our business continued to capitalize on the macro-economic environment, where heightened economic pressures drove increased volumes in our Financial Asset and Industrial divisions.
Research
Heritage Global Inc. (NASDAQ:HGBL) ($2.80; $103.3M market cap) has acquired a state of the art pharmaceutical plant to hopefully resell in the future.
"We're thrilled to announce the acquisition of this cutting-edge pharmaceutical plant. Teaming up with our synergistic JV partners, we're eager to re-market the facility, reinforcing our commitment to the pharma sector. This marks another exciting opportunity for Heritage Global Partners,"
Research
Heritage Global Inc. (NASDAQ:HGBL) ($2.97; $110.2M market cap), a company that, through its subsidiaries, engages in the asset liquidation business announced Q2 2023 results:
Sales of $13.1 million vs $11.1 million in the prior year but below analyst estimates of $14.0 million
Non-GAAP EPS of $0.07 vs $0.07 in the prior year and in line with analyst estimates of $0.07.
“ As we have mentioned before, our auction business will vary from quarter to quarter, but our auction pipeline presently is robust and we are confident that we will continue to see substantial activity in our industrial assets division as we move through the balance of 2023.
“We are pleased with our performance to date this year and especially proud to have achieved record net operating income of $7.0 million for the first six months of 2023. As we move through the balance of the year, we are energized about building on the momentum created in the first half and believe we are ideally positioned to compete for and win the exciting opportunities we are seeing across the markets in which we operate,”
Research
Heritage Global Inc. (NASDAQ:HGBL) ($2.58; $95.2M market cap), a company that, through its subsidiaries, engages in the asset liquidation business, announced it has raised its full year 2022 net operating income to exceed $10.0 million from previously stated target of $9.0 million.
“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.”
Research
Heritage Global Inc. (NASDAQ:HGBL) ($2.09; $76.9M market cap), a company that, through its subsidiaries, engages in the asset liquidation business, announced Q3 2022 results:
Sales of $12.6 million vs $5.9 million in the prior year
EPS of $0.06 vs $0.01 in the prior year
“Our very strong third quarter results continued the momentum we have built throughout 2022 and were highlighted by a milestone achievement as all five of the Company’s revenue streams performed at or above our expectations. Strong demand and high volumes in both our Industrial and Financial Assets divisions combined to contribute to record net operating income and significantly improved profitability in the third quarter..
…“We are pleased with the very strong performance and the growth we have achieved from our diverse revenue streams to date in 2022. Our balanced business model provides a strong foundation for growth and that, coupled with economic tailwinds that benefit our businesses, point to what we believe will be a strong fourth quarter and 2023 for our Financial and Industrial Asset divisions.”
Guidance:
“We have driven strong results to date in 2022. With our visibility today, and our optimism around the opportunities we’re seeing in the marketplace, we are raising our target for full year 2022 net operating income to $9.0 million , which surpasses our best prior annual results of $6.1 million, achieved in 2020. With continued solid operational execution, we believe we are well positioned to generate continued growth and drive profitability.”
Research
Heritage Global Inc. (NASDAQ:HGBL) ($1.64; $60.1M market cap), a company that, through its subsidiaries, engages in the asset liquidation business, announced it expects to report strong net operating income of $3 to $4 million for Q2 2022.
“strong performance in both of the Company’s operating divisions as well as the final disposition of the Huntsville real estate assets associated with its joint venture partnership and the conclusion of that project”
Still, we need to wait on how much of the strong operating income results were derived from real estate asset sales, since it’s not a core part of the company‘s ongoing income generation.
Research
Heritage Global Inc. (NASDAQ:HGBL) ($1.57; $57.4M market cap), a company that, through its subsidiaries, engages in the asset liquidation business, continues to see insider buying. On Friday, we mentioned that in the past month insiders have purchased ~127,000 shares. Well,yesterday, another Form 4 filing crossed from CEO, Ross Dove, showing he purchased 30,701 shares at an average price of $1.63. This comes on the heels of his mid-November purchase of 57,342 shares at $1.74.
Research
Heritage Global Inc. (NASDAQ:HGBL) ($1.88; $68.2M market cap), a company that, through its subsidiaries, engages in the asset liquidation business, announced Q3 2021 results:
Sales of $5.9 million vs $7.5 million in the prior year
EPS of $0.01 vs $0.04 in the prior year
“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
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 benefit from rising asset flows, driving improved performance and profitability."
Research
Heritage Global Inc. (NASDAQ:HGBL) ($3.06; $109.2M market cap) , a company that, through its subsidiaries, engages in the asset liquidation business, announced Q1 2021 results after yesterday’s market close:
Sales of $7.1 million vs $4.2 million in the prior year and vs est of $6.48 million
EPS of $0.03 vs. of $0.00 in the prior year and vs est of $0.04
We are going to check for any information that may have been conveyed in the conference call that was held shortly after the earnings was released to see we can glean anything more than what was only reported in the release.
“2021 is off to a strong start with significantly improved operating income, net income and adjusted EBITDA. While the economy continues to reopen and recover, we are seeing continued momentum in our auction business, with clients in this segment seeking to liquidate industrial equipment and assets to improve their financial position as they prepare to fully re-engage their operations. As we move through 2021, we expect to see an increase in the release of non-performing loans into the market, which we expect will favorably impact demand for our financial asset services. We’re pleased to have delivered strong performance in the first quarter and with the opportunities we’re seeing in the markets in which we operate, we remain energized and optimistic about growing our leadership position and prospects through the balance of the year.”
Research
Heritage Global Inc. (NASDAQ:HGBL) ($3.08; $108.3M market cap) , a company that, through its subsidiaries, engages in the asset liquidation business announced Q4 2020 results. Investors should note that the company pre announced its net operating profits for the quarter to be at least $1.6 million back in early January.
Sales of $8.3 million vs $5.5 million in the prior year and ahead of analyst estimates of $7.2 million
Non-GAAP EPS of $0.07 vs a loss of $0.04 in the prior year and slightly below analyst estimates of $0.08
“As we announced in January, we closed several large transactions at Heritage Global Partners during the fourth quarter, which significantly contributed to the strength of the quarter and enabled us to begin 2021 with significant momentum across our businesses. We are optimistic for our prospects as we have moved into 2021, and expect to see strong supply on the auction side of our business as the pandemic continues to drive the liquidation of industrial equipment and assets. Likewise, we anticipate increased demand for our financial asset services, as we expect to see an increase in the release of non-performing loans into the market this calendar year.”
We believe the stock can trade at a P/E of 20 to 25. Using current quarterly EPS as the run rate, this would imply a near term (6 to 12 months) price target of $5.60 to $7.00. However, we do believe the Company may be able to obtain a P/E well outside our assumption range if management can show consistency in its growth plan. Furthermore, we see a high possibility the company will consummate accretive acquisitions that could render analyst estimates to be conservative.
Research
Heritage Global Inc. (NASDAQ:HGBL) ($1.80; $63.3M market cap) , a company that, through its subsidiaries, engages in the asset liquidation business. announced Q3 2020 results:
Sales of $7.5 million vs $6.6 million in the prior year
EPS of $0.04 vs $0.04 in the prior year
“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.”
