Heritage Global Inc. (HGBL) saw its loss narrow to $0.37 million, or $0.01 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $3.64 million, or $0.13 a share. Revenue during the quarter surged 128.24 percent to $8.58 million from $3.76 million in the previous year period. Operating margin for the quarter stood at negative 4.68 percent as compared to a positive 92.26 percent for the previous year period.
Operating loss for the quarter was $0.40 million, compared with an operating income of $3.47 million in the previous year period.
Ross Dove, Heritage Global chief executive officer stated, "Heritage Globals unique, value-driven corporate and financial asset solutions platform continued to deliver positive results on behalf of our growing base of global clients, as reflected by the 128% increase in total revenues. Importantly, the noteworthy progress we are achieving on our expense management initiatives led to a 10% year-over-year reduction in third quarter selling, general and administrative expense.
Working capital remains negative
Working capital of Heritage Global Inc. was negative $4.72 million on Sep. 30, 2016 compared with negative $7.85 million on Sep. 30, 2015. Current ratio was at 0.55 as on Sep. 30, 2016, up from 0.36 on Sep. 30, 2015. Days sales outstanding went down to 9 days for the quarter compared with 17 days for the same period last year.
Debt comes down significantly
Heritage Global Inc. has recorded a decline in total debt over the last one year. It stood at $1.09 million as on Sep. 30, 2016, down 56.40 percent or $1.41 million from $2.50 million on Sep. 30, 2015. Heritage Global Inc. has recorded a decline in short-term debt over the last one year. Total debt was 6.63 percent of total assets as on Sep. 30, 2016, compared with 10.18 percent on Sep. 30, 2015. Debt to equity ratio was almost stable at 0.29 as on Sep. 30, 2016, when compared with the last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
