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Heritage Global Inc. Reports Profitable First Quarter 2025 Results

SAN DIEGO--(BUSINESS WIRE)-- (NASDAQ: HGBL) (鈥淗eritage Global,鈥� 鈥淗G鈥� or 鈥渢he Company鈥�), an asset services company specializing in financial and industrial asset transactions, today reported financial results for the first quarter ended March 31, 2025.

First Quarter 2025 Summary of Financial Results (unaudited):

First Quarter 2025 Review:

• The Company recorded operating income of $1.4 million for the first quarter of 2025, compared to operating income of $2.6 million in the first quarter of 2024.
• EBITDA totaled $1.5 million in the first quarter of 2025 versus EBITDA of $2.7 million in the first quarter of 2024, and Adjusted EBITDA was $1.8 million compared to $2.9 million in the prior-year quarter.
• Net income was $1.1 million or $0.03 per diluted share for the first quarter of 2025, compared to net income of $1.8 million or $0.05 per diluted share in the prior-year quarter.
• The Company had net working capital of $14.7 million at March 31, 2025 as compared to working capital of $18.5 million at December 31, 2024. The decrease in net working capital was primarily the result of the acquisition of a new corporate headquarters, ongoing share repurchases, and an opportunistic investment in the purchase of a complete pharmaceutical plant as described below.
• The Company repurchased 490,651 shares in the open market during the first quarter ended March 31, 2025 for a total of $1.0 million, or an average cost of $2.12 per share. As of March 31, 2025, the Company had approximately $2.0 million in remaining aggregate dollar value of shares that may be purchased under the repurchase program.

Heritage Global Chief Executive Officer Ross Dove commented, 鈥淥ur first quarter results delivered a solid start to the year, with continued profitability and a strong balance sheet. Heritage remains well positioned in the current economic environment which is driving an increased level of equipment and asset auctions as well as increases in charged off credit cards and non-performing consumer loans. 2025 got off to a slower start than we anticipated, however our pipeline grew throughout the quarter with a particularly strong March, positioning us well for our expectation of sequential improvement in Q2 and increasing confidence in a strong 2025. Our balance sheet includes a sufficient amount of available cash and net working capital of almost $15 million, providing us the flexibility to pursue our M&A strategy as well as to opportunistically stay active in our share buyback program.鈥�

Brian Cobb, Chief Financial officer, stated, 鈥淒uring the quarter, along with certain partners, Heritage Global Partners entered into a purchase agreement for a pharmaceutical plant and its associated equipment assets in Huntsville, Alabama, and executed a lease agreement with the seller for both the plant and equipment assets. We believe this transaction will generate strong returns in line with historical performance, stemming from both lease agreements and the anticipated future sale of the equipment and building.鈥�

First Quarter Conference Call

Management will host a webcast and conference call today, Thursday, May 8, 2025, at 5:00 p.m. ET to discuss financial results for first quarter 2025. Analysts and investors may participate via conference call, using the following dial-in information:

• 1-800-274-8461 (Domestic)
• 1-203-518-9814 (International)
• Conference ID: HGBLQ1

To access the webcast, individuals can use this . The conference call will also be available in the Investor Relations section of the Company鈥檚 . To listen to a live broadcast, go to the site or click on the webcast link at least 10 minutes prior to the scheduled start time in order to register.

Individuals can click to add the call details to their calendar.

Replay

A replay of the call will be available approximately three hours after the call ends through May 22, 2025. To access the replay, dial 1-844-512-2921 (domestic) or 1-412-317-6671 (international). The replay pin number is 11158642. A webcast replay can also be accessed on the Investor Relations section of the Company鈥檚 .

About Heritage Global Inc. (鈥淗G鈥�)

(NASDAQ: HGBL) 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, and charged-off account receivable portfolios 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鈥檚 results, evaluating the Company鈥檚 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鈥檚 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鈥檚 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 collectability of the charged off receivables that secure our loan portfolio, 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鈥檚 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.

-financial tables follow-

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Investor Relations:

John Nesbett/Jennifer Belodeau

IMS Investor Relations

203/972.9200

[email protected]

Source: Heritage Global Inc.