(HGBL) 2023 Q4 法說會逐字稿

Ladies and gentlemen, greetings, and welcome to the Heritage global Fourth Quarter and Year End 2023 earnings conference call.

女士們、先生們，大家好，歡迎參加 Heritage 全球 2023 年第四季和年終收益電話會議。

At this time, all participants are in a listen only mode A brief question and answer session will follow the formal presentation.

此時，所有參與者都處於僅聽模式 正式演示之後將進行簡短的問答環節。

If anyone should require operator assistance during the conference, please press star zero on your telephone keypad.

如果有人在會議期間需要接線員協助，請按下電話鍵盤上的星號零。

As a reminder, this conference is being recorded.

提醒一下，本次會議正在錄製中。

It is now my pleasure to introduce your host, John Nesbett with IMS Investor Relations.

現在我很高興向您介紹主持人，IMS 投資者關係部門的 John Nesbett。

Please go ahead.

請繼續。

Thank you, and good afternoon, everyone.

謝謝大家，大家下午好。

Before we begin, I'd like to remind everyone that this conference call contains forward looking statements based on our current expectations and projections about future events and are subject to change based on various important factors in light of these risks uncertainties, and hence, you should not place undue reliance on these forward-looking statements, which speak only as of the date of this call.

在我們開始之前，我想提醒大家，本次電話會議包含基於我們目前對未來事件的預期和預測的前瞻性陳述，並且考慮到這些風險的不確定性，可能會根據各種重要因素而發生變化，因此，您不應過度依賴這些前瞻性陳述，這些陳述僅代表截至本次電話會議之日的情況。

For more details on factors that could affect these expectations, please see our filings with the Securities and Exchange Commission.

有關可能影響這些預期的因素的更多詳細信息，請參閱我們向美國證券交易委員會提交的文件。

Now I'd like to turn the call over to Harish Global's Chief Executive Officer, Mr. Ross, stuff.

現在我想把電話轉給 Harish Global 的執行長羅斯先生。

Ross?

羅斯？

Thank you, John.

謝謝你，約翰。

Good evening and thank you all for joining.

晚上好，感謝大家的加入。

This is a fun one.

這是一件有趣的事。

Even as a perennial optimist this quarter exceeded my expectation with us.

即使作為一個長期的樂觀主義者，這個季度也超出了我對我們的預期。

Lillian buys of $4 million goal for Q4 was 4.6 million and the operating income it brought our annual NOI. passed $14 million.

Lillian 在第四季度購買 400 萬美元的目標是 460 萬個，它為我們帶來了年度 NOI。超過了1400萬美元。

I will to turn the call over to Brian in a moment to give you the details in depth, then I'll come back and tried to add some color on how and why and where we're headed what I was 12 and brought home had not so typical straight a report card by mother Zelda of data at the kitchen table.

我稍後會將電話轉給布萊恩，為您提供深入的詳細信息，然後我會回來嘗試添加一些色彩，說明我們如何、為什麼以及我們將走向何方，而我 12 歲時帶回家的東西不那麼典型，直接是薩爾達母親在廚房餐桌上記錄數據的成績單。

He opens it up and said now kit Can you just keep doing this?

他打開它並說現在你可以繼續這樣做嗎？

Well, that's my goal here at Heritage global.

嗯，這就是我在 Heritage Global 的目標。

Thank you all for I in Europe.

謝謝大家為我在歐洲。

Thank you, Ross, and welcome again to those tuning and we greatly appreciate your ongoing support.

謝謝您，羅斯，並再次歡迎您進行調整，我們非常感謝您持續的支持。

Also, I want to thank the entire heritage team for an outstanding year.

此外，我還要感謝整個遺產團隊度過了出色的一年。

I'm pleased to announce that we recorded full year 2023 operating income of 14.3 million.

我很高興地宣布，我們 2023 年全年營業收入為 1,430 萬美元。

This was another strong quarter and year for Heritage global.

這是 Heritage Global 又一個強勁的季度和年度。

As we saw continued progress across the business, we're continuing to see positive trends in our industrial assets division with heightened macroeconomic pressures driving continued progress in our auction business.

隨著我們看到整個業務的持續進步，我們的工業資產部門繼續看到積極的趨勢，宏觀經濟壓力的加強推動了我們拍賣業務的持續進步。

In our core auction and resale segments, we saw growth year over year in the volume of transactions with all segments increasing their ability to work in tandem to source use assets for resale and win option contracts.

在我們的核心拍賣和轉售細分市場中，我們看到交易量逐年增長，所有細分市場都提高了協同工作的能力，以尋找用於轉售的使用資產並贏得期權合約。

The overall division's operating income was 7.8 million, including no earnings from joint ventures involving real estate as compared to 9.2 million during 2022, which included approximately $5.1 million of operating income from joint ventures involving a real estate component.

該部門的整體營業收入為 780 萬美元，其中不包括涉及房地產的合資企業的收入，而 2022 年為 920 萬美元，其中包括來自涉及房地產部分的合資企業的約 510 萬美元的營業收入。

While the auction business tends to be a bit lumpier quarter to quarter, our pipeline remains strong and we anticipate continued momentum into 2024.

雖然拍賣業務每季的情況往往會有些不穩定，但我們的管道仍然強勁，我們預計到 2024 年仍將保持強勁勢頭。

Our Financial Assets division reported a strong quarter as record consumer debt has led to higher volumes of charged-off credit cards and nonperforming loans.

我們的金融資產部門報告了強勁的季度業績，因為創紀錄的消費者債務導致信用卡沖銷和不良貸款數量增加。

And as a result, operating income for the division was up 43% and 83% for the fourth quarter and full year ended December 31st, 2023, respectively, when compared to the prior year periods.

因此，截至 2023 年 12 月 31 日的第四季和全年，該部門的營業收入與去年同期相比分別成長了 43% 和 83%。

This year's performance within the Financial Assets division was primarily driven by our brokerage segment with operating income of $8.9 million, an increase of $4.2 million or 90% as this segment has expanded its number of clients and is more directly correlated with the increase in volume.

今年金融資產部門的表現主要是由我們的經紀業務部門推動的，營業收入為890 萬美元，增加了420 萬美元或90%，因為該部門擴大了客戶數量，並且與交易量的增長更直接相關。

I've charged off and nonperforming loans on the market.

我已經沖銷了市場上的不良貸款。

Our specialty lending segment also has made good progress in 2023, reaching a gross investment balance in notes receivable of $38.4 million, an increase of $16.3 million as compared to the prior year.

我們的專業貸款部門在 2023 年也取得了良好進展，應收票據投資餘額總額達到 3,840 萬美元，比前一年增加 1,630 萬美元。

This segment contributed operating income of approximately 1.9 million for the full year, up 54% when compared to 2022 and as a reminder, the operating income from our lending segment includes the effect of new accounting guidance, which requires companies to estimate and reserve for their current expected credit losses.

該部門全年貢獻了約 190 萬歐元的營業收入，與 2022 年相比增長了 54%，並提醒一下，我們貸款部門的營業收入包括新會計指南的影響，該指南要求公司估計和準備其當前預期信用損失。

The segment's provision for credit losses during the year was roughly $1.2 million, offsetting both its notes receivable and equity method investment balances.

該部門本年度的信貸損失撥備約為 120 萬美元，抵銷了其應收票據和權益法投資餘額。

As mentioned last call, we increased the Company's non-cash credit loss reserve in the third quarter due to ongoing restructuring efforts with our largest borrower and decline collection rates industry-wide, we reached an agreement with this borrower and expect to recoup the loan, albeit over a potentially a longer time period than previously expected.

正如上次電話會議中所提到的，我們在第三季度增加了公司的非現金信用損失準備金，因為我們與最大的借款人正在進行重組，並且整個行業的收款率下降，我們與該借款人達成協議並預計收回貸款，儘管可能比之前預期的時間更長。

In the fourth quarter, we did not materially increase our credit loss reserve and sitting here today we generally don't see elevated risk from our other borrowers while we continue to diligently monitor the collection rates of our borrowers and industry wide.

在第四季度，我們沒有大幅增加信用損失準備金，今天坐在這裡，我們通常沒有看到其他借款人的風險上升，同時我們繼續努力監控借款人和整個行業的收款率。

Turning to the financial results, consolidated operating income was $4.6 million in the fourth quarter compared to $3.1 million in the fourth quarter of 2022.

談到財務業績，第四季的綜合營業收入為 460 萬美元，而 2022 年第四季的綜合營業收入為 310 萬美元。

For the quarter, we reported adjusted EBITDA of $4.9 million compared to $3.4 million in the prior year period.

本季度，我們報告調整後 EBITDA 為 490 萬美元，而去年同期為 340 萬美元。

Based on the past several years of taxable income and projected operating results for the next five years, we determined that it is more likely than not that we will utilize a significant portion of our net operating loss carryforwards and thus released an additional $2.2 million of our valuation allowance against certain deferred tax assets as compared to 7.1 million during the fourth quarter of 2022.

根據過去幾年的應稅收入和未來五年的預計經營業績，我們確定我們很可能會利用淨經營虧損結轉的很大一部分，因此額外釋放了 220 萬美元某些遞延稅項資產的估值備抵（2022 年第四季為710 萬）。

As a result during the fourth quarter of 2023, we recognized an income tax benefit of $0.4 million compared to an income tax benefit of $6.8 million a year ago, net income was 4.9 million, or $0.13 per diluted share compared to net income of $10 million, or $0.27 per diluted share in the fourth quarter of 2022.

因此，在2023 年第四季度，我們確認了40 萬美元的所得稅優惠，而一年前的所得稅優惠為680 萬美元，淨利潤為490 萬美元，即稀釋後每股0.13 美元，而去年同期淨利潤為1000 萬美元，或 2022 年第四季稀釋後每股 0.27 美元。

The decrease year over year was primarily driven by reduced release of the income tax valuation allowance, as previously stated, offset by improved operational performance our balance sheet remains strong with stockholders' equity of $61.1 million as of December 31st, 2023, up from 48.3 million at December 31st, 2022, and net working capital currently sits at 11.6 million.

年比下降的主要原因是如前所述，所得稅估價津貼發放減少，但被營運業績改善所抵銷。我們的資產負債表依然強勁，截至2023 年12 月31 日，股東權益為6,110 萬美元，高於4,830 萬美元截至2022年12月31日，淨營運資本目前為1,160萬。

I'll conclude by reiterating what a strong quarter and year.

最後，我將重申季度和年度的強勁表現。

This was for Heritage global with our business showing continued growth with some help from macroeconomic tailwinds.

這是針對 Heritage Global 的，在宏觀經濟順風的幫助下，我們的業務顯示出持續成長。

And now I'll pass it off, Mr. Opta.

現在我將把它傳遞出去，奧普塔先生。

Well, thank you, Brian.

嗯，謝謝你，布萊恩。

Let me just tried to take a moment to tackle how we grew in 2023 and kind of get you to really see exactly what's happening.

讓我花點時間來談談我們在 2023 年的發展情況，讓您真正了解正在發生的事情。

So I'll start with financial in the end of the day.

所以最後我將從財務開始。

What happens in Financial is the addressable market grew.

金融領域發生的事情是潛在市場的成長。

So our execution is always been where it should be, but it's almost like they were miracle workers that team had in legs during a pandemic when there was no supply, but not just stay profitable and consistently profitable, but they have zero layoffs.

因此，我們的執行力始終處於應有的水平，但這幾乎就像他們是團隊在大流行期間沒有供應時的奇蹟工人，但不僅保持盈利和持續盈利，而且他們的裁員為零。

And at the same time, they had zero layoffs to continue building out the technology as it take advantage of the marketplace and increase the headcount with high-performing individuals that was done because the CEONYX. state Ludwig, new vendors and anybody after 25 years in the industry that the market was going to come back.

同時，他們以零裁員的方式繼續開發該技術，因為它利用了市場並增加了高績效員工的人數，這是由 CEONYX 完成的。 Ludwig、新供應商以及任何在該行業工作了 25 年的人都表示，市場將會回歸。

While the market has come back has come roaring back, we have the highest ever consumer debt.

儘管市場已經強勁復甦，但我們的消費者債務達到了歷史最高水準。

So our addressable market is dramatically increased, and we feel really good that over the next two years as there's a runoff of selling off these assets and lead scheme reform at a very high rate.

因此，我們的潛在市場急劇增加，我們感覺非常好，在未來兩年內，將大量出售這些資產並以非常高的速度進行主導計劃改革。

I'll kind of switch now over to the industrial side.

我現在將轉向工業方面。

On the industrial side, it's all about gas gross asset sales, and we believe they can grow why do we believe they can grow because at the end of the day, the ultimate way they grow is the same way.

在工業方面，這一切都與天然氣總資產銷售有關，我們相信它們可以成長，為什麼我們相信它們可以成長，因為歸根結底，它們的最終成長方式是相同的。

It's based upon the addressable market, and we're seeing more plant closures.

它基於目標市場，我們看到更多工廠關閉。

We're seeing more consolidations and we're seeing more layoffs than we did one or two years ago to we believe it does in our favor.

與一兩年前相比，我們看到了更多的整合和裁員，我們相信這對我們有利。

And we have two different parts of our business that can grow at once.

我們的業務有兩個不同的部分可以同時成長。

So I'm very comfortable that we're in a good spot.

所以我很高興我們處於一個好的位置。

And I thank you all for listening, and we're open to questions.

我感謝大家的聆聽，我們願意接受提問。

At any time.

隨時。

Thank you.

謝謝。

We'll now be conducting a question and answer session.

我們現在將進行問答環節。

If you'd like to ask a question, please press star one on your telephone keypad.

如果您想提問，請按電話鍵盤上的星號一。

A confirmation tone will indicate your line is in the question queue.

確認音將表示您的線路已在問題佇列中。

You may press star two if you'd like to remove your question in the queue For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star two.

如果您想要刪除佇列中的問題，可以按星號二。對於使用揚聲器設備的與會者，可能需要先拿起聽筒，然後再按星號二。

One moment please while we poll for questions.

請稍等一下，我們將進行投票詢問問題。

Thank you.

謝謝。

Our first question is from Mark Argento with Lake Street Capital Markets.

我們的第一個問題來自 Lake Street Capital Markets 的 Mark Argento。

Please proceed with your question in Rossi.

請繼續在羅西提出您的問題。

Brian, congrats on a decent end of the year and a strong year overall.

布萊恩，祝賀您在今年取得了不錯的成績，並且總體上取得了強勁的一年。

I'm just looking at 2024.

我只看2024年。

I know you guys are confident they will not get some tough comps here in the last second half of 2023 compared to the year ago period.

我知道你們相信，與去年同期相比，他們在 2023 年下半年不會遇到一些艱難的比賽。

But when you sit back and look given the macro.

但當你坐下來觀察宏觀情況時。

Yes.

是的。

How are you thinking about 2024 in terms of growth?

您如何看待 2024 年的成長？

I'll take that before, Brian.

我先接受這個，布萊恩。

So when you talk about growth, it's not that easy to talk about it and brag about it after you just came off a record year.

因此，當你談論成長時，在剛剛經歷了創紀錄的一年之後，談論它並吹噓它並不那麼容易。

So we went from a record year, two years ago to a record year this year twos, um, you get a record year every year.

所以我們從兩年前的創紀錄的一年，到今年兩年的創紀錄的一年，嗯，每年都會創紀錄的一年。

I don't even know of even Babe Ruth hit more home runs every year.

我甚至不知道貝比魯斯每年打出更多的本壘打。

So we think we're going to have a solid high-performing year, and we think we're going to have a good profitable year mark.

因此，我們認為我們將有一個穩定的高績效年，我們認為我們將有一個良好的獲利年。

And whether it's not whether it's going to be a record year or not, it is not predictable when you look at the first quarter's forecast alone.

而且無論是否會成為創紀錄的一年，僅從第一季的預測來看，這是無法預測的。

So it really depends on whether or not we get a couple of windfalls we're going to have and I can promise the marketplace, we're going to have a good year.

因此，這實際上取決於我們是否會獲得一些意外之財，我可以向市場保證，我們將度過美好的一年。

Is that fair enough?

這樣夠公平嗎？

Yes.

是的。

Well, just digging in a little bit, I mean, you touched on the addressable markets.

嗯，稍微深入一點，我的意思是，您觸及了潛在市場。

We are expanding.

我們正在擴張。

You can kind of grow along with that expansion?

你可以隨著這種擴張而成長嗎？

I'm just trying to figure out how we should think about kind of model in the out year here and and I'm just trying to better understand the I'm trying to get the of the broader macro picture and kind of how that translates in and how do you guys anticipate growing?

我只是想弄清楚我們應該如何思考今年的模型，我只是想更好地理解我正在嘗試了解更廣泛的宏觀情況以及如何轉化你們預計如何成長？

It doesn't sound like you don't anticipate growing meaningfully, but yet you cut that out.

聽起來你並不是沒有預見到有意義的成長，但你卻把它刪掉了。

So I was just hoping to maybe try to pin you down a little bit more on, you know what how we should be thinking about it, but you're the guy went to college and became an analyst, not me, I'm an auctioneer.

所以我只是希望能試著讓你多了解一點，你知道我們應該如何思考它，但你是那個上了大學並成為分析師的人，而不是我，我是一個拍賣。

What do I think I think that at the end of the day, the addressable market is bigger than last year.

我認為，歸根結底，潛在市場比去年更大。

So therefore, we should make more money than last year.

因此，我們應該比去年賺更多的錢。

But at the end of the day, what I don't know is that there's going to be a big winner, not where we buy some one large campus and make a couple of million dollars, which is a big swing.

但最終，我不知道的是，將會有一個大贏家，而不是我們購買一個大型校園並賺取數百萬美元，這是一個巨大的轉變。

Those are one-time transactional deals.

這些都是一次性交易。

What I've tried to tell all of our investors is please don't be in an investor that looks at us as a quarter-over-quarter sequential growth company.

我試圖告訴我們所有的投資者的是，請不要將我們視為一家季度環比增長的公司。

We're going to be profitable every quarter, but we're going to have bikes in some quarters.

我們每季都會獲利，但在某些季度我們會擁有自行車。

And just one follow up, Bob, maybe for Brian.

鮑勃，也許是布萊恩的後續行動。

In terms of the health of the loan book, I know last quarter, you took the reserve increase.

就貸款帳簿的健康狀況而言，我知道上個季度，您增加了準備金。

The reserve doesn't look like you did anything that reserve in Q4.

儲備看起來不像您在第四季度所做的任何儲備。

Does that loan continue to kind of perform as I'm assuming the loan continues to perform.

該貸款是否會像我假設的那樣繼續發揮作用？

Any updates there in terms of your confidence level that you have everything accounted for at this point?

就您目前已掌握一切的信心水平而言，有任何更新嗎？

Yes, yes, we had the restructuring, as you all know, on in early just said late November, early December on about 25 loan agreements previously were restructured and consolidated that allowed the minimum monthly payments to go down significantly for our largest borrower.

是的，是的，正如你們所知，我們在11 月底、12 月初就進行了重組，之前對大約25 份貸款協議進行了重組和合併，這使得我們最大借款人的最低每月還款額大幅下降。

So we feel good about what we did there on the reserve, we went through a very thorough analysis in Q4.

因此，我們對我們在保護區所做的事情感到滿意，我們在第四季度進行了非常徹底的分析。

We worked with our borrowers who worked with our senior lenders, the internal team, our auditors, and we feel very comfortable that the position that we have taken in Q4 is appropriate given the information that we have, some of the ongoing work there is really to stay closely tied to our borrowers and their performance to make sure we're on top of the collection rates on the performance of collections and also the remittances and payments from our borrowers and their financial position.

我們與借款人合作，借款人與我們的高級貸款人、內部團隊、審計師合作，我們感到非常放心，鑑於我們掌握的信息，我們在第四季度採取的立場是適當的，一些正在進行的工作確實是與我們的借款人及其績效保持密切聯繫，以確保我們掌握收款績效、借款人的匯款和付款及其財務狀況的收款率。

So I think there's been a lot of work to get to a point where we're comfortable not changing the reserve from Q. three very much.

所以我認為我們已經做了很多工作才能達到這樣的程度：我們可以放心地不改變第三個問題的儲備金。

Thanks, guys.

多謝你們。

I'll hop back in the queue.

我會跳回到隊列中。

Our next question today is Bob Sutton.

今天我們的下一個問題是鮑勃·薩頓。

Our next question is from George Sutton with Craig-Hallum.

我們的下一個問題來自喬治·薩頓和克雷格·哈勒姆。

Please proceed with your question.

請繼續你的問題。

Thank you, Ross, the growth at NLX was great.

謝謝你，Ross，NLX 的成長非常巨大。

I just curious if you could break it down, if possible, into the macro dynamic versus what you mentioned to be a growing number of customers in that in that segment and therefore, how sustainable is growth in that in that segment?

我只是好奇，如果可能的話，您是否可以將其分解為宏觀動態，以及您提到的該細分市場中客戶數量不斷增長的情況，因此，該細分市場的增長有多可持續？

So I think right now looking at the macro economy, we don't need needed to change right now, George, in other words already, we have this enormous amount of runoff that has to get sold over the next two years in a trillion a credit card debt, et cetera.

所以我認為現在看看宏觀經濟，我們現在不需要改變，喬治，換句話說，我們已經擁有大量的徑流，必須在未來兩年內以每年一萬億美元的價格出售。信用卡債務等等。

So I think we're going to be stable for the next two or three years making no profits every quarter.

所以我認為我們將在未來兩三年內保持穩定，每個季度都不會獲利。

And I don't think that we need anything to make it any different than what it is.

我認為我們不需要任何東西來讓它變得不同於它本來的樣子。

Supply is at an all-time high now three years following an all-time high that's going to create an attractive environment for buyers.

供應量在創下歷史新高三年後，目前已達到歷史新高，這將為買家創造一個有吸引力的環境。

That would suggest that there would be a greater need for loans in your other segment.

這表明您的其他部門對貸款的需求更大。

And I'm just curious your comfort and interest in growing your loan book, given that dynamic so the I can tell you on the graph, but go ahead, Brian.

我只是好奇你對增加貸款簿的舒適度和興趣，考慮到這種動態，所以我可以在圖表上告訴你，但繼續吧，布萊恩。

Yes, so on, you're exactly right, George, on the declining collections, roughly a decrease prices, I think from their all-time highs, maybe 30% or more.

是的，等等，你說得完全正確，喬治，關於收藏品的下降，價格大致下降，我認為與歷史最高點相比，可能下降了 30% 或更多。

And so we've been talking some in tandem with our borrowers and there's a lot of excitement in the industry.

因此，我們一直在與借款人進行一些討論，這個行業非常令人興奮。

And right now is the time to buy.

現在正是買入的時候。

And we see that with the PRA and OnCore public company financials that they're purchasing more.

我們從 PRA 和 OnCore 上市公司的財務數據中看到，他們正在購買更多的產品。

And that's exactly what we're thinking about.

這正是我們正在考慮的。

What I'm focused on now with the team is really managing the risk in the portfolio as well as we are redeploying our principal remittances in a way that we have higher-quality collateral such that over time, our loan book is one at a lower risk, two more sustainable for long term.

我現在與團隊一起真正關注的是管理投資組合中的風險，以及我們正在以一種擁有更高質量抵押品的方式重新部署我們的本金匯款，這樣隨著時間的推移，我們的貸款賬簿會處於較低水平風險，兩者更具有長期可持續性。

Got you.

明白你了。

Okay.

好的。

Offline, Ross, I'd love to hear what nonstandard straight days means.

離線，羅斯，我很想聽聽非標準的直線日子意味著什麼。

I can't come up with it myself, you probably got them, George.

我自己想不出，你可能已經明白了，喬治。

Maybe as a reminder, if you'd like to ask your question, please press star one on your telephone keypad.

也許作為提醒，如果您想提出問題，請按電話鍵盤上的星號一。

Our next question is from Michael Diana with Maxim Group.

我們的下一個問題來自 Maxim Group 的 Michael Diana。

Please proceed with your question.

請繼續你的問題。

Jay.

傑伊.

Thank you.

謝謝。

Hey, Ross.

嘿，羅斯。

I Michael, you talked about the your your addressable markets growing and on the financial side, I know, traditionally, it's been charged off credit cards in the past.

我邁克爾，你談到了你的潛在市場的成長，在財務方面，我知道，傳統上，它過去是從信用卡中扣除的。

Evoltra also talked about fintechs buy now pay later and on that, are those contributing substantially to the supply?

Evoltra 也談到了金融科技公司「先買後付」的問題，這些公司是否對供應做出了重大貢獻？

Yes, they've been really growing.

是的，他們確實在成長。

The thing about the fintech companies is not old line.

關於金融科技公司的事情並不是老生常談。

Basically, old-line lending companies are big banks that have huge recovery departments.

基本上，老牌貸款公司都是擁有龐大回收部門的大型銀行。

So as they need to sell off assets.

因為他們需要出售資產。

They're way more positioned to use an outsourced partner like NLX, then they tried to do it themselves.

他們更傾向於使用像 NLX 這樣的外包合作夥伴，然後他們嘗試自己做。

So as their lending requirements keep coming up and as our charge-offs keep growing.

因此，隨著他們的貸款需求不斷增加，我們的沖銷不斷增加。

There's a higher probability they're going to use us then a money center bank who's got 100 people in recoveries.

他們使用我們的可能性比使用一家有 100 人康復的貨幣中心銀行要高。

So it's a true growth part of our business.

所以這是我們業務真正成長的一部分。

Okay.

好的。

That's great.

那太棒了。

And let me ask him on the industrial side, American lab trading.

讓我問他工業方面，美國實驗室貿易。

I know that's been a big it's vendors synergistic.

我知道供應商之間的協同作用很大。

Can you just remind us how how that blends in with your other traditional auction business.

您能否提醒我們如何將其與您的其他傳統拍賣業務融為一體。

So they basically buy and sell lab equipment.

所以他們基本上買賣實驗室設備。

But in the process of buying and selling lab equipment, they find us auctions.

但在買賣實驗室設備的過程中，他們發現我們在拍賣。

They find us assets that may be on their own as American lab trading.

他們為我們找到了可能屬於美國實驗室交易的資產。

They wouldn't have bought, for instance, if it's a whole factory, they may have wanted to cherry the stuff they wanted to put it into inventory and it would have passed on the other stuff.

例如，如果這是一個完整的工廠，他們就不會購買，他們可能想把他們想要放入庫存的東西精挑細選，這樣就會傳遞給其他東西。

They can now say, okay, we'll pay a premium for these very specific identifiable bull assets.

他們現在可以說，好吧，我們將為這些非常具體的可識別的牛市資產支付溢價。

We want to put it into our IT inventory, but we'll pay you for everything.

我們希望將其納入我們的 IT 庫存中，但我們將向您支付所有費用。

So we've created basically a synergistic growth platform there that I think was, um, was an intelligent buyer for us and also a very good deal for them, Michael.

因此，我們基本上在那裡創建了一個協同成長平台，我認為，嗯，對我們來說是一個聰明的買家，對他們來說也是一筆非常好的交易，麥可。

Great.

偉大的。

Thanks, Ron.

謝謝，羅恩。

Thank you.

謝謝。

There are no further questions at this time.

目前沒有其他問題。

I'd like to end Paul back over to management for any closing remarks.

我想讓保羅回到管理階層做總結發言。

This is Ross, the CEO., and I just want to say thank you to everybody who listened on the call.

我是執行長羅斯，我只想對所有收聽電話會議的人表示感謝。

Thank you to everybody who's invested with us and thank you to everybody who's put trust in us.

感謝所有與我們一起投資的人，感謝所有信任我們的人。

We're going to keep our foot on the pedal and thank you for listening in.

我們將繼續努力，感謝您的收聽。

This concludes today's conference.

今天的會議到此結束。

You may disconnect your lines at this time.

此時您可以斷開線路。

Thank you for your participation.

感謝您的參與。