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Heritage Global Inc. Reports 2018 First Quarter Operating ResultsHeritage Global Inc. (OTCQB: HGBL, CSE: HGP) ("Heritage Global," "HGI (News - Alert)" or "the Company"), a value-driven, innovative leader in corporate and financial asset liquidation transactions, valuations and advisory services, today reported financial results for the first quarter ended March 31, 2018 as summarized below.
First Quarter 2018 Summary of Financial Results:
Heritage Global Chief Executive Officer, Ross Dove, stated, "Heritage Global began fiscal 2018 on a strong note with solid first quarter performance. The successful execution of our strategies to grow the top-line, coupled with our continued cost management initiatives, resulted in significant gross margin improvement and first quarter operating income and net income growth of 257% and 405%, respectively. "Our divisions are maturing together into a very synergistic and seamless platform. Clients globally are reaping the benefits of our integrated valuation and disposition platforms working across asset classes from enterprise sales to capital assets to real estate to financial assets as well as patents and trademarks. We are excited to have Heritage on a clear path to execute its strategy of full service value creation. "In closing, we are extremely pleased with the progress we made in the first quarter and expect the positive momentum to continue throughout 2018. We believe that our platform of innovative global asset solutions, combined with our industry-wide reputation for delivering exceptional service to a growing base of global clients, will allow us to generate sustainable operating profits as we undertake the next phase of growth for the Company. We remain confident that Heritage Global's ongoing initiatives to improve top and bottom-line performance, combined with the prudent management of our capital structure, are a formula for sustained long term financial growth and the enhancement of shareholder value." Definitions and Disclosures Regarding non-GAAP Financial Information Adjusted EBITDA reflects the standard definition of EBITDA (net income (loss) plus depreciation and amortization, interest and other expense, and provision for income taxes), plus or minus fair value adjustments of contingent consideration and plus stock-based compensation. Management believes that the presentation of this non-GAAP financial measure, when considered together with the GAAP financial measures and the reconciliation to the most directly comparable GAAP financial measure, provides a more complete understanding of the factors and trends affecting the Company than could be obtained absent these disclosures. Management uses Adjusted EBITDA to make operating and strategic decisions and to evaluate the Company's performance. The Company has disclosed this non-GAAP financial measure so that investors have the same financial data that management uses, with the intention of assisting investors to make comparisons to the Company's historical operating results and analyze its underlying performance. Management believes that Adjusted EBITDA is a useful supplemental tool to evaluate the underlying operating performance of the Company on an ongoing basis. The use of 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 cited in the tables at the end of this news announcement which reconciles GAAP reported net income to Adjusted EBITDA for the periods presented herein. About Heritage Global Inc. (www.heritageglobalinc.com) Heritage Global Inc. (OTCQB: HGBL, CSE: HGP) is a value-driven, innovative leader in corporate and financial asset liquidation transactions, valuations and advisory services. Heritage Global focuses on identifying, valuing, acquiring and monetizing underlying tangible and intangible assets in twenty-eight global manufacturing and technology sectors. Heritage Global acts as an adviser, as well as a principal, acquiring or brokering turnkey manufacturing facilities, surplus industrial machinery and equipment, industrial inventories, accounts receivable portfolios, intellectual property, and entire business enterprises. 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. The forward-looking statements contained in this communication are based on knowledge of the environment in which the Company currently operates and are subject to change based on various important factors, including variability in magnitude and timing of asset liquidation transactions, the impact of changes in the U.S. national and global economies, interest rate and foreign exchange rate sensitivity, as well as other factors beyond the Company's 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-
The notes contained in our Quarterly Report on Form 10-Q are an integral part of these consolidated financial statements. -balance sheets follow-
The notes contained in our Quarterly Report on Form 10-Q are an integral part of these consolidated financial statements. - EBITDA and Adjusted EBITDA (non-GAAP measures) reconciliation follows -
The notes contained in our Quarterly Report on Form 10-Q are an integral part of these consolidated financial statements.
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