ACTG - Earnings call transcript Q1 2021 | Acacia Research Corporation

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Operator

Greetings, and welcome to the Acacia Research First Quarter 2021 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Rob Fink of FNK IR. may you sir, you begin. Thank

Rob Fink

Financial Hosting Thank Press, Officer; today Chief Clifford call Executive you, and Officer; Rosenstein, Investment operator. Chief Chief Al are and the Tobia, Officer. Rich President

Litigation remind These forward-looking Before plans, beginning, this may the as about estimates, defined forward-looking contain future that expectations, Securities information relating current and provided in call to you Reform statements forecasts I'd XXXX. during the events company's Act to of like projections that Private and objectives, are expectations statements or generally a the forward-looking certain factors based materially estimates to operation result future current trends. differ risk are as and projections, and and those may relate for results projected uncertainties. from of Actual on results future

I'd in and and website quarterly the that Q&A participate is remind reports filed the Rich Form company's to joining which the Clifford the quarterly will to the the all Clifford, issued company's discussion release On see Events Acacia's turn business like News with I'd said, Acacia Press. Clifford now will call financial is such this Research please accessed results, today's This the in the but call on session. and going tab. may described a of to Al, release a the under results provide financial yours. the before on to and at call update. is report remotely, everyone review that over who factors With of on XX-K SEC. market a in are annual morning press be risks uncertainties, disclosing XX-Q, opened. both Form risk For like

Clifford Press

Starboard created us on strategy benefits to everyone. sheet range LP. we capital as have Thank Value inherent and balance from We we to morning, with potential ready-access This enabling our of remain good a adopted you, strategic leverages strategy of the strong transactions. executing alliance flexibility Rob, our the focused the foundation committed that pursue and also

within to the work continue acquisitions value evaluating cap potential small We sector. with Starboard Value

Our primary set equity public market. sub the billion remains opportunity $X

As as the of efficient primary permanent one capital we this and that the have we approach view research area our favors in structure. past, said segment and the least market

year last has idea with flow, of the the increasing. robust Over our concerns validity top performance the slowed interest market however rate funnel and --

to an of see We public in beginning number again. are market the increase opportunities,

assist have private We two to us private selected added our to public equity transactions. and executives team in

financial acquire companies mature segments. to is services and goal operating in certain Our healthcare, technology, industrial

continue Bioscience, of outcome existing public were Board immediate to in evaluate April of engagement review maximize we heavily are its review new shareholder On involved. of XX, in two in which implementation strategic on value a one we to number return the culminating our assets This was announced our developments opportunities, As holdings. part Arix changes. There highlight. recent the we

result is of this the and a Formerly General now of Chief a to was recruiting permanent Operating As Arix Interim Board. appointed Lyne, named Counsel CEO and Arix review CEO. Rob Officer

Kohlberg Isaac were to Arix Non-Executive to as appointed Directors. nominees, and Acacia Board addition O'Connell the In Maureen of

very joined Moncreiffe period, Peregrine Arix. distinguished Chairman. of another as company over investment of Chairman Board the Peregrine Finally, we as an record as has Chairman established and a listed are him to Non-Executive extended have fortunate

these million or And new changes raised company shareholders. its $XXX is by responsive is of GBPXXX ensure supportive our that that governance this month, the Board billion. served very improvements at are a in these of million investment We Oxford corporate valuation believe and $X.X earlier Nanopore to

the public as successful plans first Immunocore This well. complete follows to Oxford offering. initial As this quarter in transaction, part announced of by Nanopore IPO also an the

realization. can and All for enhanced value liquidity options help to the these transactions us for increased deliver of us

to working the can all continue be life exercise. of maximize portfolio. sciences a our value time-consuming This We

of for With including to realization year such, complete to continue business, resulted and the efficient balanced we properly evaluate shareholders. will soft the made sized well most litigation. in respect our the a both the licensing to portfolio, past investments options and value over As our IP

Our call team Rich? is to actively discuss to number opportunities. Rosenstein, Rich advancing With that, like our our I'd a results. turn and of the over CFO

Rich Rosenstein

Thank you, Clifford.

XXXX. non-cash the that This $X.XX and during appreciation of expense to at XXXX, and the XX, liabilities million at $X.XX or value December compared price derivatives for the or the $XXX March warrants share at to $XXX.X XXXX Our This Acacia's $XXX million related December book note is was Series embedded this per to to of is XX, A and in increased at from expense the substantial due Series derivatives. the result the basic warrants in to B $XXX.X fair March XX, share value XX, $X.XX The the carry. per which non-cash. is decrease share potential million XXXX change it's of entirely important we quarter expense

were As basis instruments rise and full on XX, these per other preferred value share up eliminated at or is per book $X.XX exercise as comparable from all of December exercised. of a XXXX. all forma preferred we believe would Acacia's warrants of look of these to again calculation stock, stock, be book useful and exercise these of liabilities $X.XX for Pro warrants it to share, value will upon expiration at a

notes the for senior quarter, issued detail the securities report made cash upcoming morning the million at available Starboard. these at $XXX.X the We million will -- quarter December More results the later we totaling issued XX. financial quarter this to and in $XXX.X press Revenues were also was $X.X ended to For last our of XXXX today. results million. compared quarter in release on have equity on of which the file and XX-Q, SEC first million been with Debt Form the quarterly following. with value in fair secured And included $XXX

the for to Now, let back Clifford me turn comments. call closing Clifford?

Clifford Press

execute strategy. to Acacia conclusion, investment its In Rich. Thanks, continues

be continues focus our in a to make which value our on balance improvement strong with and sheet book additional always we can As investments.

Starboard. an of in identify shareholder are variety working acquisition factors That's important. and focused a fit with stewards diligence collaboration appropriate in to of valuation capital other as are hard said We

not make for an will We acquisition experience.

We are opportunities carefully. large potential of a number evaluating in

to are answer questions. now We happy

Operator

[Operator you. Instructions] Thank

first comes from Anthony Our Craig-Hallum. Please proceed question the line question. of your Stoss with with

Anthony Stoss

Is to hired Clifford, that team, the the Alan, equity of going that Yes. on things. speed Clifford, you level private Starboard? same I The kind on the these that. targets that Board just couple acquisition of after anything two of said fact on Is of Rich. a tell interaction on you're that the kind the it still would needed I helpful? people? with follow-ups to Anything that's detail had a up as is you of the level in Thanks, for targeted high pipeline Acacia to pipeline us you presume can hire of result, And industries to execs or the flowing, would potential be in. there be

Clifford Press

Tony. Thanks, Okay.

hired implementation We very helpful thought and capable very the regard. we these were good steps, two relevant take very as ready that on it and we getting next worked they've to reaching would that research that as in help additions execution are going. program point these is is had we out. because we So a two additions But the and been becoming analysis where was deal

we been towards along now further we're completing execution -- transactions had before. than So

of able completed of upon year. terms and announce In be to that this we acquisitions will course certainly we when those to be announce transaction able execution, of expect to complete

Anthony Stoss

update. And if if you today's wouldn't maybe press us wasn't mind prior in then, you one a any release. guys you will, I'd on Rich, also holding? then of number. to positions available the out still quarterly had hear press kind you're Can you back if that. releases, for in of kind you, you several update listed And still to maybe what Okay. NOLs total There position the give Clifford, love

Clifford Press

the Yes. We do have NOL? want from holdings take on, have the investors purchased to was in want we of previous thought ongoing the portfolio. get established -- a on as -- important question we We Woodford regular will the we the basis. the you to precedent update not listing in a it as this on to to done positions explain Rich, what realization. to give an do described. now are changes But We on

Rich Rosenstein

Sure.

was So as two well. as million. Tony, loss at had operating small the a those. of the approximately figures forward the -- for of amount latest our year $XXX net the end of latest opposed to carry We loss And capital that's

Anthony Stoss

was in that you post your my then Oxford I'm raise Thanks. recent valuation, And Rich, mistaken. up billion $X.X so, happened kind March accurate? XX where that of the last position from And it if mark Okay. would understand The I unless is what March? question,

Rich Rosenstein

the what on valuation to billion Clifford carrying XX%. is have valuation, is latest -- described what it which relative of been that that's value implied excess the $X.X by The previously round. is So we an the it's increase in --

Anthony Stoss

for Okay, me. it Thanks, guys. that's

Operator

[Operator Newsletter. Instructions] Hawk Please proceed of Hoff question. IP Our comes with question the next with line David from your

David Hoff

morning. good Hi,

the there materiality really a AK coming developments I quarter Is can be a lot patent seen two where threshold that might of Focusing on of have a on the patent triggered? settlements a in. side, floor you good disclose? there is one, guess documents, bunch floor Quarter

Clifford Press

that want Rich, take you do to one?

Rich Rosenstein

$X saw we revenue. in Yes. million approximately quarter, look, you as We, I mean, the current in had

$XX million all in For we last approximately revenue. of had year,

disclosed individual unless settlements haven't We large. particularly they're

[ph] there about on progress say So to should optimistic IT we which recently, say the have to comp I But that that that the threshold, ago. releases we don't that don't has settlements. necessarily newer in debt. because making let's team including portfolios a want acquired we want suggest say a that months few would regular we've we're that just what press closed you been with our I the is expect I but the just across have on is pipeline

David Hoff

to of that the to is Are for there also doing expect portfolio out IPRs? portfolio hearings very number to a Harris also or of portfolios be you there these well well. don't is And semiconductor is Orange/France first know that Telecom defendants might additional very well. Cisco. Markman Are doing discussions? have The defendants is there semiconductor winning still pretty know. doing I be I heading adding trial been some any negotiating --

Clifford Press

reluctant campaigns. know, to we particular I details very funds, the discuss of you think licensing As investment of are keeping most with IP in

So I probably public source I you think know your of developments. information. best follow that's And

David Hoff

very Okay. much. Thank you

Operator

Thank you.

this back closing further floor We at time. questions like I turn to now for have would over management to the no comments.

Clifford Press

Thank much look and to earnings the attending for next we quarter. you you forward call, Acacia very Research speaking

Operator

gentlemen, today's and conclude teleconference. this Ladies does

your time. day. your Thank may You at participation, disconnect you lines and for this a wonderful have

Acacia Research (ACTG) 17 May 212021 Q1 Earnings call transcript