HG Holdings, Inc. reported its financial results for the three and nine months ended September 30, 2024, showing notable changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the three months ended September 30, 2024, total revenues increased to $3,068,000 from $2,949,000 in the same period of 2023. The gross underwriting profit also rose to $2,969,000, up from $2,838,000. However, net income for the quarter decreased to $157,000, compared to $222,000 in the prior year. For the nine-month period, total revenues reached $8,891,000, a slight increase from $8,594,000 in 2023, while gross profit improved to $8,580,000 from $8,103,000. Notably, the company reported a net loss of $67,000 for the nine months ended September 30, 2024, an improvement from a loss of $544,000 in the same period of 2023.

The company’s cash and cash equivalents as of September 30, 2024, stood at $10,368,000, slightly up from $10,247,000 at the end of 2023. Restricted cash increased significantly to $12,587,000 from $7,505,000, primarily held in escrow for title insurance transactions. Total assets rose to $46,400,000, compared to $41,904,000 at the end of 2023, while total liabilities increased to $14,412,000 from $9,483,000.

In terms of strategic developments, HG Holdings continues to focus on its title insurance operations through subsidiaries such as National Consumer Title Insurance Company (NCTIC). The company reported direct title premiums of $1,490,000 for the three months ended September 30, 2024, compared to $969,000 in 2023, and $3,555,000 for the nine months, up from $2,894,000. The title insurance segment's revenue is closely tied to real estate activity, which has been affected by high mortgage interest rates.

The company has also engaged in management advisory services, generating $2,318,000 in revenue for the three months ended September 30, 2024, compared to $2,202,000 in 2023. Operating expenses for the quarter increased to $3,252,000 from $3,086,000 in the prior year.

Additionally, HG Holdings has initiated a share repurchase program, authorizing up to $1.5 million in common stock repurchases, with 48,333 shares repurchased at an average price of $5.00 during the nine months ended September 30, 2024. The company did not declare or pay any dividends during the reported periods.

Overall, HG Holdings, Inc. has shown resilience in its financial performance, with improvements in revenue and gross profit, while strategically positioning itself for future growth in the title insurance market amidst challenging economic conditions.