Acacia Research Reports Third Quarter 2024 Financial Results
Acacia Research (Nasdaq: ACTG) reported its third quarter 2024 financial results, generating $23.3 million in consolidated revenue, a 131% increase year-over-year. Energy operations contributed $15.8 million, while industrial operations added $7.0 million, up 12% and 11% quarter-over-quarter, respectively. The company reported a GAAP net loss of $14.0 million and produced $1.7 million of Total Company Adjusted EBITDA. Operating cash flow for the nine months ended September 30, 2024, was $70.4 million. Acacia repurchased 3.0 million shares for $14.0 million and acquired Deflecto for $103.7 million. Post-acquisition, cash reserves stood at approximately $280 million. Book value per share was $5.85, potentially $6.00 excluding $14.9 million in non-recurring legal expenses. The company recorded a GAAP operating loss of $10.3 million, improved from $13.2 million last year, due to higher revenues. The stock repurchase program continues, aiming to enhance shareholder returns.
Acacia Research (Nasdaq: ACTG) ha riportato i risultati finanziari per il terzo trimestre del 2024, generando 23,3 milioni di dollari di ricavi consolidati, con un incremento del 131% rispetto all'anno precedente. Le operazioni energetiche hanno contribuito con 15,8 milioni di dollari, mentre le operazioni industriali hanno aggiunto 7,0 milioni, in aumento del 12% e dell'11% rispetto al trimestre precedente, rispettivamente. L'azienda ha registrato una perdita netta GAAP di 14,0 milioni di dollari e ha prodotto 1,7 milioni di dollari di EBITDA rettificato totale. Il flusso di cassa operativo per i nove mesi terminati il 30 settembre 2024 è stato di 70,4 milioni di dollari. Acacia ha riacquistato 3,0 milioni di azioni per 14,0 milioni di dollari e ha acquisito Deflecto per 103,7 milioni di dollari. Dopo l'acquisizione, le riserve di cassa si sono attestate a circa 280 milioni di dollari. Il valore contabile per azione era di 5,85 dollari, che potrebbe salire a 6,00 dollari escludendo 14,9 milioni di dollari in spese legali non ricorrenti. L'azienda ha registrato una perdita operativa GAAP di 10,3 milioni di dollari, migliorata rispetto ai 13,2 milioni dell'anno scorso, grazie a ricavi più elevati. Il programma di riacquisto di azioni continua, con l'obiettivo di migliorare i ritorni per gli azionisti.
Acacia Research (Nasdaq: ACTG) reportó sus resultados financieros del tercer trimestre de 2024, generando 23,3 millones de dólares en ingresos consolidados, lo que representa un aumento del 131% en comparación con el año anterior. Las operaciones de energía aportaron 15,8 millones de dólares, mientras que las operaciones industriales sumaron 7,0 millones, un incremento del 12% y 11% respecto al trimestre anterior, respectivamente. La compañía reportó una pérdida neta GAAP de 14,0 millones de dólares y produjo 1,7 millones de dólares en EBITDA ajustado total. El flujo de efectivo operativo durante los nueve meses que finalizaron el 30 de septiembre de 2024 fue de 70,4 millones de dólares. Acacia recompró 3,0 millones de acciones por 14,0 millones de dólares y adquirió Deflecto por 103,7 millones de dólares. Después de la adquisición, las reservas de efectivo se situaron en aproximadamente 280 millones de dólares. El valor contable por acción fue de 5,85 dólares, potencialmente 6,00 dólares excluyendo 14,9 millones de dólares en gastos legales no recurrentes. La compañía registró una pérdida operativa GAAP de 10,3 millones de dólares, mejorando desde los 13,2 millones del año pasado, debido a ingresos más altos. El programa de recompra de acciones continúa, con el objetivo de mejorar los retornos a los accionistas.
아카시아 리서치(Nasdaq: ACTG)는 2024년 3분기 재무 결과를 발표하며 2억 3천3백만 달러의 통합 매출을 기록하여 전년 대비 131% 증가했다고 밝혔습니다. 에너지 부문은 1천5백8십만 달러를 기여했으며, 산업 부문은 7백만 달러를 추가했으며 각각 전 분기 대비 12% 및 11% 증가했습니다. 이 회사는 GAAP 기준으로 1천4백만 달러의 순손실을 보고하며 총 회사 조정 EBITDA는 1백7십만 달러를 기록했습니다. 2024년 9월 30일 기준으로 9개월간의 운영 현금 흐름은 7천4백만 달러였습니다. 아카시아는 3백만 주를 1천4백만 달러에 재매입했으며, 1억 3천7백만 달러에 Deflecto를 인수했습니다. 인수 후, 현금 잔고는 약 2억 8천만 달러에 달했습니다. 주당 장부 가치는 5.85달러였으며, 비정기 법률 비용 1천4백9십만 달러를 제외하면 6.00달러로 상승할 수 있습니다. 회사는 매출 증가로 인해 지난해의 1천3백2십만 달러에서 개선된 1천3백만 달러의 GAAP 운영 손실을 기록했습니다. 주식 재매입 프로그램은 계속되고 있으며 주주 수익을 향상시키는 것을 목표로 하고 있습니다.
Acacia Research (Nasdaq: ACTG) a annoncé ses résultats financiers pour le troisième trimestre 2024, générant 23,3 millions de dollars de revenus consolidés, soit une augmentation de 131 % par rapport à l'année précédente. Les opérations énergétiques ont contribué à hauteur de 15,8 millions de dollars, tandis que les opérations industrielles ont ajouté 7,0 millions de dollars, en hausse de 12 % et 11 % par rapport au trimestre précédent, respectivement. L'entreprise a enregistré une perte nette GAAP de 14,0 millions de dollars et a produit 1,7 million de dollars d'EBITDA ajusté total. Le flux de trésorerie opérationnel pour les neuf mois se terminant le 30 septembre 2024 s'élevait à 70,4 millions de dollars. Acacia a racheté 3,0 millions d'actions pour 14,0 millions de dollars et a acquis Deflecto pour 103,7 millions de dollars. Après l'acquisition, les réserves de liquidités s'élevaient à environ 280 millions de dollars. La valeur comptable par action était de 5,85 dollars, potentiellement 6,00 dollars si l'on exclut 14,9 millions de dollars de frais juridiques non récurrents. L'entreprise a enregistré une perte opérationnelle GAAP de 10,3 millions de dollars, améliorée par rapport à 13,2 millions de dollars l'année précédente, grâce à des revenus plus élevés. Le programme de rachat d'actions se poursuit, visant à améliorer les rendements pour les actionnaires.
Acacia Research (Nasdaq: ACTG) hat die finanziellen Ergebnisse für das dritte Quartal 2024 veröffentlicht und erzielte 23,3 Millionen US-Dollar an konsolidierten Einnahmen, was einem Anstieg von 131 % im Vergleich zum Vorjahr entspricht. Die Energiebetriebe trugen 15,8 Millionen US-Dollar bei, während die Industrieprodukte 7,0 Millionen US-Dollar hinzufügten, was einem Anstieg von 12 % bzw. 11 % im Vergleich zum vorherigen Quartal entspricht. Das Unternehmen meldete einen GAAP-Nettoverlust von 14,0 Millionen US-Dollar und erzielte 1,7 Millionen US-Dollar an bereinigtem EBITDA des Gesamtunternehmens. Der operative Cashflow für die neun Monate bis zum 30. September 2024 betrug 70,4 Millionen US-Dollar. Acacia kaufte 3,0 Millionen Aktien für 14,0 Millionen US-Dollar zurück und erwarb Deflecto für 103,7 Millionen US-Dollar. Nach der Übernahme beliefen sich die liquiden Mittel auf etwa 280 Millionen US-Dollar. Der Buchwert pro Aktie betrug 5,85 US-Dollar, möglicherweise 6,00 US-Dollar ohne 14,9 Millionen US-Dollar an nicht wiederkehrenden Rechtskosten. Das Unternehmen verzeichnete einen GAAP-operativen Verlust von 10,3 Millionen US-Dollar, was eine Verbesserung gegenüber 13,2 Millionen US-Dollar im Vorjahr darstellt, bedingt durch höhere Einnahmen. Das Aktienrückkaufprogramm wird fortgesetzt, um die Renditen für die Aktionäre zu erhöhen.
- Generated $23.3 million in revenue, up 131% YoY.
- Energy operations revenue increased 12% QoQ.
- Industrial operations revenue increased 11% QoQ.
- Generated $70.4 million in operating cash flow for the first nine months.
- Repurchased 3.0 million shares for $14.0 million.
- Acquired Deflecto for $103.7 million.
- Book value per share potentially $6.00 excluding non-recurring expenses.
- Reported a GAAP net loss of $14.0 million.
- Recorded a GAAP operating loss of $10.3 million.
- Intellectual property operations revenue decreased to $0.5 million from $1.8 million last year.
- Net loss included $4.1 million in unrealized loss related to equity securities.
Insights
The Q3 2024 results showcase significant growth with
Key positives include
The Deflecto acquisition marks a strategic expansion in industrial manufacturing, targeting essential products with regulatory mandates and established customer relationships. The purchase price of
The transaction structure, utilizing both cash and secured credit facility, maintains financial flexibility while expanding the industrial portfolio. The focus on essential, regulatory-mandated products provides defensive characteristics and recurring revenue potential, though integration execution will be key to realizing value.
Generated
Energy Operations Generated
Generated
Repurchased 3.0 Million Shares for
Subsequent to the Quarter, Acquired Deflecto for
Martin (“MJ”) D. McNulty, Jr., Chief Executive Officer, stated, “Acacia’s third quarter results reflect the Company’s unwavering focus on value creation via its core technology, energy and industrials verticals. The Company generated
Subsequent to the quarter, Acacia completed its third transaction in the last twelve months, acquiring Deflecto Acquisition, Inc., a leading specialty manufacturer of essential products serving the commercial transportation, HVAC and office markets for
Following the Deflecto acquisition, the Company’s cash reserves were approximately
Key Business Highlights
-
Recorded book value per share of
$5.85 $5.90 $14.9 million $6.00 -
Generated
$23.3 million 131% compared to$10.1 million -
Recorded a GAAP net loss of
$14.0 million $0.14 $22.6 million $0.23 -
Generated
$6.9 million $26.1 million -
Generated
$1.7 million $12.1 million -
Continued to manage Parent Costs2 within Parent Interest Income, with Parent Costs of
$14.0 million $14.7 million -
Generated
$70.4 million -
Repurchased 3,007,294 shares for approximately
$14.0 million -
Subsequent to the quarter, on October 18, acquired Deflecto Acquisition, Inc. (“Deflecto”) for
$103.7 million Indianapolis, Indiana , Deflecto is a leading specialty manufacturer of essential products serving the commercial transportation, HVAC and office markets. Deflecto is a market leader across each of its segments and end markets, supplying essential, regulatory mandated products to a blue-chip customer base via long-term relationships with more than 1,500 leading retail, wholesale and OEM customers and distribution partners globally. In the trailing twelve-month period ended August 31, 2024, Deflecto generated revenue of approximately$131 million $128 -$136 million U.S. Securities and Exchange Commission (the “SEC”) on October 21, 2024.
| _________________________ |
1 Total Company Adjusted EBITDA and Operated Segment Adjusted EBITDA are non-GAAP financial measures. See below for a reconciliation of Total Company Adjusted EBITDA to net loss, the most directly comparable GAAP financial measure. For the definition of these measures and a reconciliation of the components of Operated Segment Adjusted EBITDA to their most directly comparable GAAP financial measures, see the accompanying supplemental information section. |
The following table provides a reconciliation of Total Company Adjusted EBITDA to consolidated net loss, the most directly comparable GAAP measure for the three months ended March 31, June 30 and September 30, and the nine months ended September 30.
|
Three Months Ended March 31, |
|
Three Months Ended June 30, |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|||||||||
|
2024 |
|
2024 |
|
2024 |
|
2024 |
|||||||||
|
(In thousands) |
|||||||||||||||
|
(Unaudited) |
|||||||||||||||
GAAP Net Loss |
$ |
(186 |
) |
|
$ |
(8,446 |
) |
|
$ |
(13,996 |
) |
|
$ |
(22,628 |
) |
|
Net (Loss) Income Attributable to Noncontrolling Interests |
|
(3 |
) |
|
|
(383 |
) |
|
|
2,339 |
|
|
|
1,953 |
|
|
Income Tax (Benefit) Expense |
|
(1,109 |
) |
|
|
(7,061 |
) |
|
|
5,497 |
|
|
|
(2,673 |
) |
|
Interest Income and Other, Net |
|
(4,769 |
) |
|
|
(3,019 |
) |
|
|
(2,022 |
) |
|
|
(9,810 |
) |
|
Loss (Gain) on Foreign Currency Exchange |
|
68 |
|
|
|
134 |
|
|
|
(130 |
) |
|
|
72 |
|
|
Net Realized and Unrealized (Gain) / Loss on Derivatives |
|
(171 |
) |
|
|
2,659 |
|
|
|
(8,034 |
) |
|
|
(5,546 |
) |
|
Net Realized and Unrealized (Gain) / Loss on Investments |
|
(2,160 |
) |
|
|
4,744 |
|
|
|
4,074 |
|
|
|
6,658 |
|
|
Non-recurring Legacy Legal Expense |
|
6,243 |
|
|
|
6,614 |
|
|
|
2,000 |
|
|
|
14,857 |
|
|
GAAP Operating Loss |
$ |
(2,087 |
) |
|
$ |
(4,758 |
) |
|
$ |
(10,272 |
) |
|
$ |
(17,117 |
) |
|
Depreciation, Depletion & Amortization |
|
4,568 |
|
|
|
7,405 |
|
|
|
9,762 |
|
|
|
21,735 |
|
|
Stock-Based Compensation |
|
858 |
|
|
|
891 |
|
|
|
781 |
|
|
|
2,530 |
|
|
Realized Hedge Gain |
|
800 |
|
|
|
113 |
|
|
|
715 |
|
|
|
1,628 |
|
|
Transaction-Related Costs |
|
— |
|
|
|
222 |
|
|
|
320 |
|
|
|
542 |
|
|
Legacy Matter Costs |
|
2,193 |
|
|
|
216 |
|
|
|
368 |
|
|
|
2,777 |
|
|
Total Company Adjusted EBITDA |
$ |
6,332 |
|
|
$ |
4,089 |
|
|
$ |
1,674 |
|
|
$ |
12,095 |
|
|
| _________________________ |
2 Parent Cost is a non-GAAP financial measure. For the definition of this measure and a reconciliation of this measure to Operating (Loss) Income, the most directly comparable GAAP financial measure, see the accompanying supplemental information section. |
The following table provides the Adjusted EBITDA for each of the Company’s operating segments for the three months ended March 31, June 30 and September 30, and the nine months ended September 30.
|
Three Months Ended March 31, |
|
Three Months Ended June 30, |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|||||||||
|
2024 |
|
2024 |
|
2024 |
|
2024 |
|||||||||
|
(In thousands) |
|||||||||||||||
|
(Unaudited) |
|||||||||||||||
Energy Operations Adjusted EBITDA3 |
$ |
1,378 |
|
|
$ |
7,039 |
|
|
$ |
8,442 |
|
|
$ |
16,859 |
|
|
Industrial Operations Adjusted EBITDA3 |
|
1,897 |
|
|
|
449 |
|
|
|
579 |
|
|
|
2,925 |
|
|
Operated Segment Adjusted EBITDA (excluding Intellectual Property Operations Adjusted EBITDA) |
|
3,275 |
|
|
|
7,488 |
|
|
|
9,021 |
|
|
|
19,784 |
|
|
Intellectual Property Operations Adjusted EBITDA3 |
|
7,160 |
|
|
|
1,309 |
|
|
|
(2,139 |
) |
|
|
6,330 |
|
|
Operated Segment Adjusted EBITDA |
|
10,435 |
|
|
|
8,797 |
|
|
|
6,882 |
|
|
|
26,114 |
|
|
Parent Costs |
|
(4,103 |
) |
|
|
(4,708 |
) |
|
|
(5,208 |
) |
|
|
(14,019 |
) |
|
Total Company Adjusted EBITDA |
$ |
6,332 |
|
|
$ |
4,089 |
|
|
$ |
1,674 |
|
|
$ |
12,095 |
|
|
The following table provides Parent Costs and Parent Interest Income for the three months ended March 31, June 30 and September 30, and the nine months ended September 30.
|
Three Months Ended March 31, |
|
Three Months Ended June 30, |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|||||||||
|
2024 |
|
2024 |
|
2024 |
|
2024 |
|||||||||
|
(In thousands) |
|||||||||||||||
|
(Unaudited) |
|||||||||||||||
Parent Costs |
$ |
(4,103 |
) |
|
$ |
(4,708 |
) |
|
$ |
(5,208 |
) |
|
$ |
(14,019 |
) |
|
Parent Interest Income |
$ |
5,079 |
|
|
$ |
5,028 |
|
|
$ |
4,570 |
|
|
$ |
14,677 |
|
|
| _________________________ |
3 Energy Operations Adjusted EBITDA, Industrial Operations Adjusted EBITDA and Intellectual Operations Adjusted EBITDA are non-GAAP financial measures. For the definitions of these measures and reconciliations of these measures to the most directly comparable GAAP financial measures, see the accompanying supplemental information section. |
Third Quarter 2024 Financial Summary and Highlights:
-
Total revenues were
$23.3 million 131% compared to$10.1 million -
Energy Operations generated
$15.8 million -
Industrial Operations generated
$7.0 million $8.3 million -
Intellectual Property Operations generated
$0.5 million $1.8 million
-
Energy Operations generated
-
General and administrative (G&A) expenses were
$11.1 million $11.6 million -
The Company recorded a GAAP operating loss of
$10.3 million $13.2 million -
Energy Operations contributed
$3.1 million $4.3 million $0.3 million $0.7 million $8.4 million -
Industrial Operations contributed
$0.1 million $0.7 million $0.6 million -
The third quarter included
$1.9 million
-
Energy Operations contributed
-
The Company recorded GAAP net loss of
$14.0 million $0.14 $1.6 million $0.03 -
Net loss included
$4.1 million -
Net loss included
$2.0 million
-
Net loss included
The following table provides a breakdown of the Company’s financial highlights for the three and nine months ended September 30, 2024 and 2023.
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
|
(unaudited) |
|
(unaudited) |
|||||||||||||
Intellectual property operations |
$ |
0.5 |
|
|
$ |
1.8 |
|
|
$ |
19.4 |
|
|
$ |
6.3 |
|
|
Industrial operations |
|
7.0 |
|
|
|
8.3 |
|
|
|
22.2 |
|
|
|
26.5 |
|
|
Energy operations |
|
15.8 |
|
|
|
— |
|
|
|
31.8 |
|
|
|
— |
|
|
Total revenues |
$ |
23.3 |
|
|
$ |
10.1 |
|
|
$ |
73.5 |
|
|
$ |
32.8 |
|
|
Operating loss |
$ |
(10.3 |
) |
|
$ |
(13.2 |
) |
|
$ |
(17.1 |
) |
|
$ |
(35.0 |
) |
|
Unrealized gains (losses) 1 |
$ |
(4.1 |
) |
|
$ |
8.8 |
|
|
$ |
(35.5 |
) |
|
$ |
18.8 |
|
|
Realized gains (losses) |
$ |
— |
|
|
$ |
— |
|
|
$ |
28.9 |
|
|
$ |
(9.4 |
) |
|
Non-recurring legacy legal expense |
$ |
(2.0 |
) |
|
$ |
— |
|
|
$ |
(14.9 |
) |
|
$ |
— |
|
|
GAAP Net (loss) income |
$ |
(14.0 |
) |
|
$ |
1.6 |
|
|
$ |
(22.6 |
) |
|
$ |
(7.7 |
) |
|
GAAP Diluted net loss per share |
$ |
(0.14 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.23 |
) |
|
$ |
(0.23 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
1 Unrealized gains and (losses) are related to the change in fair value of equity securities as of the end of the reported period and for the nine months ended September 30, 2024, and include the reversal of the previously recorded unrealized gain related to the Company’s Arix Bioscience Plc. position for a realized gain. |
||||||||||||||||
Life Sciences Portfolio
Acacia has generated
-
Acacia holds interests in three private companies, valued at an aggregate of
$25.7 million 26% interest in Viamet Pharmaceuticals, Inc., an approximately18% interest in AMO Pharma, Ltd. and an approximately4% interest in NovaBiotics Ltd. Values are based on cost or equity accounting.
Balance Sheet and Capital Structure
-
Cash, cash equivalents and equity investments measured at fair value totaled
$374.2 million $403.2 million $60.0 million $12.0 million $7.3 million -
Equity securities without readily determinable fair value totaled
$5.8 million -
Investment securities representing equity method investments totaled
$19.9 million 64% of MalinJ1, which results in a26% indirect ownership stake in Viamet Pharmaceuticals, Inc. for Acacia. -
The Parent company’s total indebtedness was zero at September 30, 2024. On a consolidated basis, Acacia’s total indebtedness was
$70.0 million
Book Value as of September 30, 2024
At September 30, 2024, Acacia’s book value was
Share Repurchase Program
On November 9, 2023, Acacia’s Board of Directors approved a stock repurchase program (the “Repurchase Program”) for up to
Investor Conference Call
The Company will host a conference call today, November 12, 2024 at 8:00 a.m. Eastern Time (5:00 a.m. Pacific Time). To access the live call, please dial 877-545-0523 (
About the Company
Acacia (Nasdaq: ACTG) is a publicly traded company that is focused on acquiring and operating attractive businesses across the mature technology, energy, and industrial/manufacturing sectors where it believes it can leverage its expertise, significant capital base, and deep industry relationships to drive value. Acacia evaluates opportunities based on the attractiveness of the underlying cash flows, without regard to a specific investment horizon. Acacia operates its businesses based on three key principles of people, process and performance and has built a management team with demonstrated expertise in research, transactions and execution, and operations and management. Additional information about Acacia and its subsidiaries is available at www.acaciaresearch.com.
Safe Harbor Statement
This news release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon the Company’s current expectations and speak only as of the date hereof. All statements other than statements of historical fact are forward-looking statements and include statements related to estimates and projections with respect to, among other things, the Company’s anticipated financial condition, operating performance, the value of the Company’s assets, general economic and market conditions and other future circumstances and events. This news release attempts to identify forward-looking statements by using words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target” and “will,” and similar words and expressions; however, the absence of these words does not mean that the statements are not forward-looking. While the Company believes its assumptions concerning future events are reasonable, a number of factors could cause actual results to differ materially and adversely from those expressed or implied in any forward-looking statements, including, but not limited to: the Company’s ability to successfully identify, diligence, complete, and integrate strategic acquisitions of businesses, divisions, and/or assets, the performance of the Company’s businesses, divisions, and/or assets, disruptions or uncertainty caused by an ability to retain or changes to the employees or management teams of the Company’s businesses, changes to the Company’s relationship and arrangements with Starboard Value LP, any inability of the Company’s operating businesses to execute on their business and, with respect to Benchmark, hedging strategy, risks related to price and other fluctuations in the oil and gas market, inflationary pressures, supply chain disruptions or labor shortages, non-performance by third parties of contractual or legal obligations, changes in the Company’s credit ratings or the credit ratings of the Company’s businesses, security threats, including cybersecurity threats and disruptions to the Company’s business and operations from breaches of information technology systems, or breaches of information technology systems, facilities and infrastructure of third parties with which the Company transacts business, oil or natural gas production becoming uneconomic, causing write downs or adversely affecting Benchmark’s ability to borrow, Benchmark’s ability to replace reserves and efficiently develop current reserves, risks, operational hazards, unforeseen interruptions and other difficulties involved in the production of oil and natural gas, the impact of any seismic events, environmental liability risk, regulatory changes related to the oil and gas industry, the ability to successfully develop licensing programs and attract new business, changes in demand for current and future intellectual property rights, legislative, regulatory and competitive developments addressing licensing and enforcement of patents and/or intellectual property in general, the decrease in demand for Printronix' products, changes in safety, health, environmental, tax and other regulations, requirements or initiatives, hazards such as weather conditions, a health pandemic (similar to COVID-19), acts of war or terrorist acts and the government or military response thereto, general economic conditions, and the success of the Company’s investments. For further discussions of risks and uncertainties, you should refer to the Company’s filings with the Securities and Exchange Commission, including the “Risk Factors” section of the Company’s most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. In addition, actual results may differ materially as a result of additional risks and uncertainties of which the Company is currently unaware or which the Company does not currently view as material. Except as otherwise required by applicable law, the Company undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
ACACIA RESEARCH CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data) |
||||||||
|
September 30, 2024 |
|
December 31, 2023 |
|||||
|
(Unaudited) |
|
|
|||||
ASSETS |
|
|
|
|||||
Current assets: |
|
|
|
|||||
Cash and cash equivalents |
$ |
360,050 |
|
|
$ |
340,091 |
|
|
Equity securities |
|
14,100 |
|
|
|
63,068 |
|
|
Equity securities without readily determinable fair value |
|
5,816 |
|
|
|
5,816 |
|
|
Equity method investments |
|
30,934 |
|
|
|
30,934 |
|
|
Accounts receivable, net |
|
10,733 |
|
|
|
80,555 |
|
|
Inventories |
|
12,218 |
|
|
|
10,921 |
|
|
Prepaid expenses and other current assets |
|
23,795 |
|
|
|
23,127 |
|
|
Total current assets |
|
457,646 |
|
|
|
554,512 |
|
|
|
|
|
|
|||||
Property, plant and equipment, net |
|
2,366 |
|
|
|
2,356 |
|
|
Oil and natural gas properties, net |
|
190,149 |
|
|
|
25,117 |
|
|
Goodwill |
|
8,990 |
|
|
|
8,990 |
|
|
Other intangible assets, net |
|
30,872 |
|
|
|
33,556 |
|
|
Operating lease, right-of-use assets |
|
1,366 |
|
|
|
1,872 |
|
|
Deferred income tax assets, net |
|
8,424 |
|
|
|
2,915 |
|
|
Other non-current assets |
|
7,759 |
|
|
|
4,227 |
|
|
Total assets |
$ |
707,572 |
|
|
$ |
633,545 |
|
|
|
|
|
|
|||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|||||
Current liabilities: |
|
|
|
|||||
Accounts payable |
$ |
5,258 |
|
|
$ |
3,261 |
|
|
Accrued expenses and other current liabilities |
|
8,668 |
|
|
|
8,405 |
|
|
Accrued compensation |
|
4,969 |
|
|
|
4,207 |
|
|
Current asset retirement obligation |
|
1,562 |
|
|
|
— |
|
|
Royalties and contingent legal fees payable |
|
6,194 |
|
|
|
10,786 |
|
|
Deferred revenue |
|
1,268 |
|
|
|
977 |
|
|
Total current liabilities |
|
27,919 |
|
|
|
27,636 |
|
|
|
|
|
|
|||||
Asset retirement obligation |
|
28,065 |
|
|
|
— |
|
|
Long-term lease liabilities |
|
1,251 |
|
|
|
1,736 |
|
|
Revolving credit facility |
|
70,000 |
|
|
|
10,525 |
|
|
Other long-term liabilities |
|
1,771 |
|
|
|
4,039 |
|
|
Total liabilities |
|
129,006 |
|
|
|
43,936 |
|
|
|
|
|
|
|||||
Commitments and contingencies |
|
|
|
|||||
|
|
|
|
|||||
|
|
|
|
|||||
Stockholders' equity: |
|
|
|
|||||
Preferred stock, par value |
|
— |
|
|
|
— |
|
|
Common stock, par value |
|
99 |
|
|
|
100 |
|
|
Treasury stock, at cost, 17,720,825 and 16,183,703 shares as of September 30, 2024 and December 31, 2023, respectively |
|
(105,560 |
) |
|
|
(98,258 |
) |
|
Additional paid-in capital |
|
907,996 |
|
|
|
906,153 |
|
|
Accumulated deficit |
|
(262,357 |
) |
|
|
(239,729 |
) |
|
Total Acacia Research Corporation stockholders' equity |
|
540,178 |
|
|
|
568,266 |
|
|
|
|
|
|
|||||
Noncontrolling interests |
|
38,388 |
|
|
|
21,343 |
|
|
|
|
|
|
|||||
Total stockholders' equity |
|
578,566 |
|
|
|
589,609 |
|
|
|
|
|
|
|||||
Total liabilities and stockholders' equity |
$ |
707,572 |
|
|
$ |
633,545 |
|
|
ACACIA RESEARCH CORPORATION UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share data) |
||||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
|
|
|
|
|
|
|
|
|||||||||
Revenues: |
|
|
|
|
|
|
|
|||||||||
Intellectual property operations |
$ |
486 |
|
|
$ |
1,760 |
|
|
$ |
19,442 |
|
|
$ |
6,330 |
|
|
Industrial operations |
|
7,007 |
|
|
|
8,324 |
|
|
|
22,183 |
|
|
|
26,461 |
|
|
Energy operations |
|
15,817 |
|
|
|
— |
|
|
|
31,843 |
|
|
|
— |
|
|
Total revenues |
|
23,310 |
|
|
|
10,084 |
|
|
|
73,468 |
|
|
|
32,791 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Costs and expenses: |
|
|
|
|
|
|
|
|||||||||
Cost of revenues - intellectual property operations |
|
5,707 |
|
|
|
5,470 |
|
|
|
18,473 |
|
|
|
15,218 |
|
|
Cost of revenues - industrial operations |
|
3,523 |
|
|
|
4,377 |
|
|
|
10,849 |
|
|
|
13,530 |
|
|
Cost of production - energy operations |
|
11,729 |
|
|
|
— |
|
|
|
23,082 |
|
|
|
— |
|
|
Engineering and development expenses - industrial operations |
|
108 |
|
|
|
172 |
|
|
|
420 |
|
|
|
593 |
|
|
Sales and marketing expenses - industrial operations |
|
1,391 |
|
|
|
1,613 |
|
|
|
4,333 |
|
|
|
5,385 |
|
|
General and administrative expenses |
|
11,124 |
|
|
|
11,605 |
|
|
|
33,428 |
|
|
|
33,071 |
|
|
Total costs and expenses |
|
33,582 |
|
|
|
23,237 |
|
|
|
90,585 |
|
|
|
67,797 |
|
|
Operating loss |
|
(10,272 |
) |
|
|
(13,153 |
) |
|
|
(17,117 |
) |
|
|
(35,006 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Other income (expense): |
|
|
|
|
|
|
|
|||||||||
Equity securities investments: |
|
|
|
|
|
|
|
|||||||||
Change in fair value of equity securities |
|
(4,074 |
) |
|
|
8,823 |
|
|
|
(35,519 |
) |
|
|
18,783 |
|
|
Gain (loss) on sale of equity securities |
|
— |
|
|
|
— |
|
|
|
28,861 |
|
|
|
(9,360 |
) |
|
Earnings on equity investment in joint venture |
|
— |
|
|
|
3,375 |
|
|
|
— |
|
|
|
3,375 |
|
|
Net realized and unrealized (loss) gain |
|
(4,074 |
) |
|
|
12,198 |
|
|
|
(6,658 |
) |
|
|
12,798 |
|
|
Non-recurring legacy legal expense |
|
(2,000 |
) |
|
|
— |
|
|
|
(14,857 |
) |
|
|
— |
|
|
Change in fair value of the Series B warrants and embedded derivatives |
|
— |
|
|
|
1,525 |
|
|
|
— |
|
|
|
8,241 |
|
|
Gain on derivatives - energy operations |
|
8,034 |
|
|
|
— |
|
|
|
5,546 |
|
|
|
— |
|
|
Gain (loss) on foreign currency exchange |
|
130 |
|
|
|
(70 |
) |
|
|
(72 |
) |
|
|
25 |
|
|
Interest expense on Senior Secured Notes |
|
— |
|
|
|
(130 |
) |
|
|
— |
|
|
|
(1,930 |
) |
|
Interest income and other, net |
|
2,022 |
|
|
|
2,195 |
|
|
|
9,810 |
|
|
|
9,943 |
|
|
Total other income (expense) |
|
4,112 |
|
|
|
15,718 |
|
|
|
(6,231 |
) |
|
|
29,077 |
|
|
|
|
|
|
|
|
|
|
|||||||||
(Loss) income before income taxes |
|
(6,160 |
) |
|
|
2,565 |
|
|
|
(23,348 |
) |
|
|
(5,929 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Income tax (expense) benefit |
|
(5,497 |
) |
|
|
197 |
|
|
|
2,673 |
|
|
|
(641 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Net (loss) income including noncontrolling interests in subsidiaries |
|
(11,657 |
) |
|
|
2,762 |
|
|
|
(20,675 |
) |
|
|
(6,570 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Net loss attributable to noncontrolling interests in subsidiaries |
|
(2,339 |
) |
|
|
(1,126 |
) |
|
|
(1,953 |
) |
|
|
(1,126 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Net (loss) income attributable to Acacia Research Corporation |
$ |
(13,996 |
) |
|
$ |
1,636 |
|
|
$ |
(22,628 |
) |
|
$ |
(7,696 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Loss per share: |
|
|
|
|
|
|
|
|||||||||
Net loss attributable to common stockholders - Basic |
$ |
(13,996 |
) |
|
$ |
(1,741 |
) |
|
$ |
(22,628 |
) |
|
$ |
(15,703 |
) |
|
Weighted average number of shares outstanding - Basic |
|
99,854,723 |
|
|
|
94,328,452 |
|
|
|
99,893,336 |
|
|
|
67,072,835 |
|
|
Basic net loss per common share |
$ |
(0.14 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.23 |
) |
|
$ |
(0.23 |
) |
|
Net loss attributable to common stockholders - Diluted |
$ |
(13,996 |
) |
|
$ |
(3,164 |
) |
|
$ |
(22,628 |
) |
|
$ |
(15,703 |
) |
|
Weighted average number of shares outstanding - Diluted |
|
99,854,723 |
|
|
|
99,122,973 |
|
|
|
99,893,336 |
|
|
|
67,072,835 |
|
|
Diluted net loss per common share |
$ |
(0.14 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.23 |
) |
|
$ |
(0.23 |
) |
|
ACACIA RESEARCH CORPORATION - SUPPLEMENTAL INFORMATION
NON-GAAP FINANCIAL MEASURE
This earnings release includes adjusted EBITDA on a consolidated basis and for each of the Company’s segments. Total Company Adjusted EBITDA, Operated Segment Adjusted EBITDA and adjusted EBITDA for each of the Company’s segments are supplemental non-GAAP financial measures used by management and external users of the Company’s consolidated financial statements. GAAP refers to generally accepted accounting principles in
Total Company Adjusted EBITDA is defined as net income / (loss) before net income / (loss) attributable to noncontrolling interests, income tax (benefit) / expense, interest income and other, net, loss / (gain) on foreign currency exchange, net realized and unrealized (gain) / loss on derivatives, net realized and unrealized loss / (gain) on investments, non-recurring legacy legal expenses, depreciation, depletion and amortization, stock-based compensation, realized hedge gain / (loss), transaction-related costs, and costs related to certain legacy items. Operated Segment Adjusted EBITDA is the aggregate of Energy Operations Adjusted EBITDA, Industrial Operations Adjusted EBITDA and Intellectual Property Operations Adjusted EBITDA. The Company is providing Total Company Adjusted EBITDA and Operated Segment Adjusted EBITDA, non-GAAP financial measures, because management believes these metrics provide investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance. These measures are not intended to replace the presentation of financial results in accordance with GAAP and may be different from or otherwise inconsistent with similar non-GAAP financial measures used by other companies. The presentation of these non-GAAP financial measures supplements other metrics the Company uses to internally evaluate its subsidiary businesses and facilitate the comparison of past and present operating performance. These measures should not be considered in isolation or as a substitute for measures calculated and presented in accordance with GAAP.
Energy Operations
Energy Operations Adjusted EBITDA is defined as operating income / (loss) for Acacia’s Energy Operations before depreciation, depletion and amortization expense and transaction related costs, and including realized hedge gain / (loss). The Company is providing its Energy Operations’ Adjusted EBITDA, a non-GAAP financial measure, because the metric provides investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance.
Industrial Operations
Industrial Operations Adjusted EBITDA is defined as operating income / (loss) for Acacia’s Industrial Operations before intangibles amortization and depreciation and amortization expense. The Company is providing its Industrial Operations’ Adjusted EBITDA, a non-GAAP financial measure, because the metric provides investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance.
Intellectual Property Operations
Intellectual Property Operations Adjusted EBITDA is defined as operating income / (loss) for Acacia’s Intellectual Property Operations before patent amortization, depreciation and amortization expense and stock-based compensation. The Company is providing Intellectual Property Operations’ Adjusted EBITDA, a non-GAAP financial measure, because the metric provides investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance.
Parent Costs
Parent Costs are defined as operating income / (loss) attributable to Parent before depreciation and amortization expense, stock-based compensation, and costs related to certain legacy matters attributable to the Parent organization. The Company is providing Parent Costs, a non-GAAP financial measure, because it believes it gives the investor a clear picture of a normalized parent-level expense burden.
The following tables reconcile the most directly comparable GAAP financial measures to Adjusted EBITDA for each of the Company’s operating segments and for Parent Costs for the three months ended March 31, June 30 and September 30, and the nine months ended September 30.
|
Three Months Ended March 31, 2024 |
||||||||||||||||||
Adjusted EBITDA |
Energy Operations |
|
Industrial Operations |
|
Intellectual Property Operations |
|
Parent Costs |
|
Consolidated Total |
||||||||||
|
(In thousands) |
||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||
GAAP Operating (Loss) Income |
$ |
156 |
|
$ |
1,212 |
|
|
$ |
3,282 |
|
|
$ |
(6,737 |
) |
|
$ |
(2,087 |
) |
|
Depreciation, Depletion & Amortization |
|
422 |
|
|
685 |
|
|
|
3,435 |
|
|
|
26 |
|
|
|
4,568 |
|
|
Stock-Based Compensation |
|
— |
|
|
— |
|
|
|
443 |
|
|
|
415 |
|
|
|
858 |
|
|
Realized Hedge Gain |
|
800 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
800 |
|
|
Transaction-Related Costs |
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Legacy Matter Costs |
|
— |
|
|
— |
|
|
|
— |
|
|
|
2,193 |
|
|
|
2,193 |
|
|
Adjusted EBITDA |
$ |
1,378 |
|
$ |
1,897 |
|
|
$ |
7,160 |
|
|
$ |
(4,103 |
) |
|
$ |
6,332 |
|
|
Parent Interest Income |
|
|
|
|
|
|
$ |
5,079 |
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended June 30, 2024 |
||||||||||||||||||
Adjusted EBITDA |
Energy Operations |
|
Industrial Operations |
|
Intellectual Property Operations |
|
Parent Costs |
|
Consolidated Total |
||||||||||
|
(In thousands) |
||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||
GAAP Operating (Loss) Income |
$ |
3,249 |
|
$ |
(234 |
) |
|
$ |
(2,253 |
) |
|
$ |
(5,520 |
) |
|
$ |
(4,758 |
) |
|
Depreciation, Depletion & Amortization |
|
3,455 |
|
|
683 |
|
|
|
3,241 |
|
|
|
26 |
|
|
|
7,405 |
|
|
Stock-Based Compensation |
|
— |
|
|
— |
|
|
|
321 |
|
|
|
570 |
|
|
|
891 |
|
|
Realized Hedge Gain |
|
113 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
113 |
|
|
Transaction-Related Costs |
|
222 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
222 |
|
|
Legacy Matter Costs |
|
— |
|
|
— |
|
|
|
— |
|
|
|
216 |
|
|
|
216 |
|
|
Adjusted EBITDA |
$ |
7,039 |
|
$ |
449 |
|
|
$ |
1,309 |
|
|
$ |
(4,708 |
) |
|
$ |
4,089 |
|
|
Parent Interest Income |
|
|
|
|
|
|
$ |
5,028 |
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended September 30, 2024 |
||||||||||||||||||
Adjusted EBITDA |
Energy Operations |
|
Industrial Operations |
|
Intellectual Property Operations |
|
Parent Costs |
|
Consolidated Total |
||||||||||
|
(In thousands) |
||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||
GAAP Operating (Loss) Income |
$ |
3,064 |
|
$ |
(101 |
) |
|
$ |
(7,138 |
) |
|
$ |
(6,097 |
) |
|
$ |
(10,272 |
) |
|
Depreciation, Depletion & Amortization |
|
4,343 |
|
|
680 |
|
|
|
4,714 |
|
|
|
25 |
|
|
|
9,762 |
|
|
Stock-Based Compensation |
|
— |
|
|
— |
|
|
|
285 |
|
|
|
496 |
|
|
|
781 |
|
|
Realized Hedge Gain |
|
715 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
715 |
|
|
Transaction-Related Costs |
|
320 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
320 |
|
|
Legacy Matter Costs |
|
— |
|
|
— |
|
|
|
— |
|
|
|
368 |
|
|
|
368 |
|
|
Adjusted EBITDA |
$ |
8,442 |
|
$ |
579 |
|
|
$ |
(2,139 |
) |
|
$ |
(5,208 |
) |
|
$ |
1,674 |
|
|
Parent Interest Income |
|
|
|
|
|
|
$ |
4,570 |
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Nine Months Ended September 30, 2024 |
||||||||||||||||||
Adjusted EBITDA |
Energy Operations |
|
Industrial Operations |
|
Intellectual Property Operations |
|
Parent Costs |
|
Consolidated Total |
||||||||||
|
(In thousands) |
||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||
GAAP Operating (Loss) Income |
$ |
6,469 |
|
$ |
877 |
|
|
$ |
(6,109 |
) |
|
$ |
(18,354 |
) |
|
$ |
(17,117 |
) |
|
Depreciation, Depletion & Amortization |
|
8,220 |
|
|
2,048 |
|
|
|
11,390 |
|
|
|
77 |
|
|
|
21,735 |
|
|
Stock-Based Compensation |
|
— |
|
|
— |
|
|
|
1,049 |
|
|
|
1,481 |
|
|
|
2,530 |
|
|
Realized Hedge Gain |
|
1,628 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,628 |
|
|
Transaction-Related Costs |
|
542 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
542 |
|
|
Legacy Matter Costs |
|
— |
|
|
— |
|
|
|
— |
|
|
|
2,777 |
|
|
|
2,777 |
|
|
Adjusted EBITDA |
$ |
16,859 |
|
$ |
2,925 |
|
|
$ |
6,330 |
|
|
$ |
(14,019 |
) |
|
$ |
12,095 |
|
|
Parent Interest Income |
|
|
|
|
|
|
$ |
14,677 |
|
|
|
||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20241112999797/en/
Investor Contact:
Gagnier Communications
ir@acaciares.com
Source: Acacia Research Corporation
FAQ
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