Heritage Global Inc. (NASDAQ:HGBL) Q3 2022 Earnings Conference Call November 10, 2022 5:00 PM ET

Company Participants

John Nesbett – Investor Relations

Ross Dove – Chief Executive Officer

Brian Cobb – Chief Financial Officer

Conference Call Participants

Mark Argento – Lake Street

Michael Diana – Maxim Group

Operator

Good afternoon, ladies and gentlemen, and welcome to the Heritage Global Third Quarter 2022 Earnings Call. All participants will be in a listen-only mode. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to John Nesbett, Investor Relations for Heritage Global. Please go ahead.

John Nesbett

Thank you, and good afternoon, everyone. Before we begin, I’d like to remind everyone that this conference call contains forward-looking statements based on our current expectations and projections about future events and are subject to change based on various important factors. 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 conference call. For more details on factors that could affect these expectations, please see our filings with the Securities and Exchange Commission.

Now I’d like to turn the call over to Heritage Global’s Chief Executive Officer, Mr. Ross Dove. Ross?

Ross Dove

Hi. Thanks, John, and good afternoon, everyone. Welcome to our third quarter 2022 earnings conference call. Let’s start today’s call with Brian Cobb, our Chief Financial Officer. He will discuss our financial performance to date. Brian, you’re up.

Brian Cobb

Thanks, Ross. Our third quarter built on the momentum we experienced in the first half of the year as reflected in our strong operating results, which included operating income of $3.5 million, improved profitability and EBITDA of $3.6 million. Our financial performance during the third quarter and the nine months ended September 30, 2022, reflected strong performance from both our Industrial and our Financial Assets division.

We continue to see a substantial increase in the number of principal transactions executed in our Industrial Assets division, where we reported more than 350% increase in asset sales for the third quarter 2022 compared to the same period in 2021. Roughly one third of the growth in asset sales is attributable to the acquisition of American Laboratory Trading’s used lab equipment resale business in the third quarter of 2021. ALT has also proven to be an excellent source of auctions for HGB, not just in the third quarter, but year-to-date.