Heritage Global Inc. (HGBL) saw its loss narrow to $0.30 million, or $0.01 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $5.50 million, or $0.13 a share. Revenue during the quarter grew 7.43 percent to $5.87 million from $5.46 million in the previous year period.
Operating income for the quarter was $0.63 million, compared with an operating loss of $5.78 million in the previous year period.
Heritage Global chief executive officer Ross Dove stated, “In line with our stated objectives, the executive management team and I took decisive action beginning in 2015 to de-leverage our balance sheet, reduce operating costs, and enhance our top and bottom-line financial performance. As a result, all of Heritage Global’s operating divisions turned a profit or were on the path to becoming profitable at the end of 2016, marking a significant turnaround for the Company after several consecutive years of operating losses. Heritage Global’s return to profitability and the significant year-over-year improvement in our financial results confirms that we are on the right track toward successfully meeting our goal of achieving sustainable growth and profitability, while enhancing long-term shareholder value.”
Working capital remains negative
Working capital of Heritage Global Inc. was negative $4.14 million on Dec. 31, 2016 compared with negative $5.09 million on Dec. 31, 2015. Current ratio was at 0.52 as on Dec. 31, 2016, up from 0.46 on Dec. 31, 2015.
Debt comes down significantly
Heritage Global Inc. has recorded a decline in total debt over the last one year. It stood at $0.66 million as on Dec. 31, 2016, down 61.42 percent or $1.06 million from $1.72 million on Dec. 31, 2015. Total debt was 4.38 percent of total assets as on Dec. 31, 2016, compared with 9.15 percent on Dec. 31, 2015. Debt to equity ratio was at 0.19 as on Dec. 31, 2016, down from 0.51 as on Dec. 31, 2015.
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