Heritage Global Inc. (NASDAQ:HGBL) Q3 2023 Earnings Call Transcript

Brian Cobb: We can make up the volume. And the great news there is it’s really easy to make it up in volume because in this business, you’re not raising your OpEx. You don’t need more people to sell more loans. We’ve got pretty much the staff in place that can handle the growth. Because in the end, it’s different in the industrial auction business. You’re not setting up the plants. You don’t have shippers. You don’t have rigors, you’re not checking out the plants. Here, you’re literally just selling paper. So there’s tremendous leverage.

Operator: Thank you. As there are no further questions, I would now hand the conference over to the management for closing comments.

Brian Cobb: So thank everyone for listening in. We always appreciate having an audience of people that pay attention, that want to learn about our company that want to get more knowledge about our company. We’re very successful if anybody wants to contact us after this call and have any one-on-one discussion. We’d love to have a one-on-one discussion with you. We think that next year is going to be the best year in the history of the company, and we have every reason to believe that and every indication to believe that looking at the pipeline across the board. So this is about as excited as we can get. We’ve got a lot of work to do, and we’re going to do that work. We realized that we’re going to basically have to wait a little longer to get all of our money paid back.

But as I said in the earnings call, I’m pretty glad that people owe me $35 million. So that’s a good feeling. And if it takes a little longer to get paid back, we don’t need the money tomorrow. We have excellent cash flow. We have excellent operating leverage, and we’re in a fantastic position if we have to wait another 6 months or 1 year, 1.5 years to get paid back on some of this because we did everything right to be strong enough that we can wait. So everybody have a great day, and thank you all for listening.

Operator: Thank you. The conference of Heritage Global Inc. has now concluded. Thank you for your participation. You may now disconnect your lines.