Heritage Global Q2 adjusted EBITDA misses as specialty lending exit weighs
HGBL•Outlook
- Company did not provide specific guidance for future quarters or the full year
Key details
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Loss Per Share | $0.46 | ||
| Q2 Net Loss | $15.89 million | ||
| Q2 Adjusted EBITDA | Miss | $1.19 million | $1.84 million (3 Analysts) |
| Q2 Loss Per Basic Share | $0.46 | ||
| Q2 Operating Loss | $20.91 million | ||
| Q2 Pretax Loss | $20.98 million |
Result drivers
- Specialty lending exit - Company said Q2 results were shaped by a decision to substantially wind down Heritage Global Capital, leading to significant noncash charges
- Noncash charges - Company recorded $21.7 million in noncash charges related to write-down of non-performing loans and impairment of equity method investments
- Lower revenue - Revenue fell to $12.3 million from $14.3 million year over year
