Heritage Global Inc. (NASDAQ:HGBL) Q1 2022 Earnings Conference Call May 12, 2022 5:00 PM ET
Company Participants
John Nesbett - Institutional Marketing Services
Ross Dove - CEO
Brian Cobb - VP, Finance
Conference Call Participants
Michael Diana - Maxim Group
Mark Argento - Lake Street
Operator
Good afternoon and welcome to the Heritage Global Inc. First Quarter 2022 Earnings Conference Call. [Operator Instructions]. Please note, this event is being recorded.
I would now like to turn the conference over to John Nesbett, President, IMS Investor Relations. 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 date of this call. For more details and 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
Thank you John. Everyone, welcome to today's 2022 earnings call. I'd like to start with our VP of Finance, Brian Cobb, going through our financial performance, and then afterwards I will join in and add some color. Brian, you're up.
Brian Cobb
Thanks Ross. 2022 is off to a solid start with net operating income of $875,000 continued profitability and adjusted EBITDA of $1.1 million. As we kick off the year we believe our industry is transitioning away from some of the pandemic related headwinds we've seen during the past two years. With our diverse revenue streams, we believe we're well-positioned in both our financial assets division and our industrial assets division to capitalize on anticipated tailwinds and more favorable market conditions.
Looking at the two segments; net operating income in the industrial assets division was $846,000 in the first quarter of 2022 as compared to $1.3 million in the first quarter of 2021. Within our financial assets division, we saw a significant growth resulting in net operating income of $731,000, an increase of 59% as compared to $461,000 in the first quarter of 2021.
Sequentially net operating income in the financial assets division grew 12% as compared to the fourth quarter of 2021. On a consolidated basis, net operating income was $875,000 compared to $1 million in the first quarter of 2021. Net income was $645,000 or $0.02 per diluted share compared to net income of $1 million or $0.03 per diluted share in the first quarter of 2021. We achieved EBITDA of $1 million as compared to EBITDA of $1.1 million in the same quarter last year. And adjusted EBITDA was $1.1 million for the first quarter of 2022 compared to $1.5 million in the first quarter of 2021.