- Earnings call transcript Q3 2022

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Operator

Good morning, ladies and gentlemen, and welcome to the Acacia Research Third Quarter 2022 Financial Results Conference Call. At this time, all participants have been placed on a listen-only mode and we will open the floor for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Rob Fink. Sir, the floor is yours.

Rob Fink

Thank you, operator. are Chief Interim Financial today and Executive call Rosenstein, Rich Officer. the MJ Chief McNulty, Officer; Hosting

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

I'd of with please factors uncertainties, call was morning MJ, Events be would at discussion SEC. to a quarterly call see report Form before and filed risks may in also described to press on everyone opened. XX-K such are the release the company's This risk the reports that on the that on MJ. that disclosing is accessed under this results all said, With the turn News acaciaresearch.com issued tab. and over annual a the Acacia's and remind release I to market like financial XX-Q yours. like the the website Form For

Martin McNulty

taking join the Rob, transaction the to Starboard this a for you, XX everyone. we time with Thanks days announced of Thank completion and hi, morning. us ago, Value.

strategy to when our evaluate Starboard we framework a years together. know, three with ago may you partnership As a corporate acquisition established began

ability unintended the were expertise adequate opportunity, to relationships validated capital. of provided better the transactional capital and operational the team the new we talent and Starboard's the some learned our way, along and with While in This provides Acacia platform, structure. our pair agreement initial terms there complexities capital

simplifies complete without derivatives. and streamlines capital complicated transaction our this our addition, balance structure when In sheet

Importantly, on all to structure pools establishes this go-forward Starboard's Between believe will term to ability larger participate -- same positioning on access the the as use will and long can basis, operating deals. transaction us Starboard. can previously provide a have Acacia this capital relationships new that footing strategy use networks, to our shareholders We the to articulated. model, fund have of that we our execute we

Portfolio Clifford for As part transaction, of pleased this Manager, resigned Chair the a CEO to the our And well. implementing the been our milestone him role of Press, in strategy three Board. that, Gavin this and wish Acacia's Starboard past years both place, platform, add point in thank Clifford now we're and us Starboard. him Molinelli, with has On as Board. Partner we as CEO. transaction company named a and significant to we behalf advancing to serve of the establishing this company, the played and I've interim with With from

time, clarified, the quarter private Board long I our pipeline With our Star and Corp. me, those I role areas. to and you Capital focus Chief a Executive Metalmark the history including acquisition Investment robust Sun talented this Partners. numerous structure at teams expanded of established and a since advancing Acquisition that and included which was Value Starboard, I to Holdings, know look For who Officer equity, acquisitions, Acacia's the forward Capital prior of had I Prior of Over led Acacia joined. don't joining in second in the year, member with to in ownership Directors have Starboard I of my capital

have in some corporate the the recognized We've private necessary Value fund first-hand the acquirer, to do seen activism an for opportunity equity. Starboard have in time, and control required to not change some hedge ability without operating the For influence that space business. a and Acacia situations, create between activists

of and Acacia, to equity together. institutional formal the we as a Officer parts significant Since create in the Acacia a we can to potential struggle now we the increasingly believe are Head hybrid Chief I scale private impact evaluate to equity joined most left way With hedge we Operating valuations. that of private participate progress platform fund other have processes, brings and vehicle in enhance efficiency implementing and made hand, M&A, acquisitions. effective solution, On catalysts the which structured directly and of and structures have auction processes

company experience First, proven value private professionals public working Acacia the acquisition great creation. companies with and has with and enable team, in comprising now expertise execution a to

in-house a advisors. third-party is by class augmented world of team Our network

refined As relationships we an the we up are process of set institutionalizing executive up. how This processes, targets, team, institutional by impressive where our potential ground augmented we've from we from source excellent of relationships. investment our our scale network an benefiting includes

of process set clear and we our now when We screening potential and also have have defined utilize We criteria. our metrics transactions. evaluating benchmarks clearly a

we Finally, a approach diligence. due institutional sophisticated have to

proven quickly Once plans this of acquisition, of we have identify network enables team This go also significant rigorous our and the of acquisitions potential us and we merits, we capabilities, rely to operational acquisitions for those an potential All capabilities. but future efficiently. on complete the operating considerations partners process. experience through our any built own with with

drive operational network us this improvements addition, post-closing. In helps

the We within have deal this a of great network. confidence professionals in

pipeline a defined. now work, our As of this well result is hard

been now from our to we and is as that based on elevated with public case. shift in the quality, targets the to this result increased have Well, as the be weighted it today, pipeline markets capital. private Currently, market all valuations we're always the strategy won't our move more realities. In have It nimble equity. toward and have formalizes clarifies of Starboard The our activity terms that the is a of enough forward. seen. We market private focus in conditions and our structure, transactions recent place robust have most quantity pieces relationship bolsters

that a have ideas in actionable we are moving research importantly, our far along of pipeline and process forward. More

I active, through acquisitions actionable said, are and there and year-end, are While moving deliberate multiple our Starboard to any That our partnership targets of expect in principles not and well-defined close we process. and patient will created is would urgency We before platform. in sake acquisition. has with sacrifice for believe the Acacia completing merely pursuits a our not an we an highly differentiated

team deep We with talented have a and wide skill sets of a range experience.

capitalized team network and internal additional have us the up our top-notch a executive have can scale our we to and to ideas. between Starboard's, efforts. is engage relationships Acacia We well access we bringing capital

today. part will continue and important be has strategy of it's focus. to been that the Certainly, stress think it are I acquisitions area of to primary only Acacia's

However, the think when it's important our of I look to note at business. parts Acacia, I various

sciences comprise the life portfolio. holdings, in life we First, sciences have assets the which acquired our

continue private for to harvest gains will holdings and has our We us. public to create this value continue and our portfolio. transaction This we from significant significant assets, maintain of optimism we believe for

Second, we have holdings. public company

are these but the of stock sciences as includes of also life purchased part we portfolio, this potential have Some in initiatives. acquisition

to actively situations the continue opportunities. disconnected present valuations attractive where We in particularly pursue strategy,

has Marc in believe can effectively -- produce we Chief to Property to our continue attractive, a business uncorrelated continue Officer talented our property and invest manage Booth, and to team, effective this we returns. intellectual portfolio. Intellectual we continue Third,

quarter fund Finally, at to can results. it business to we initiatives. to and have financial an with are continue and our specific terms Starboard attractive third We confident generate valuation, our a discuss I'd the of Rich call we Printronix, this cash now private to over to turn company. future acquired operating agreement like the

Richard Rosenstein

MJ. you, Thank

sequence to Let of $XX.X and in preferred me and shares capital Ultimately, Starboard this start transaction new common with the and cash Acacia all by with in Pro into $X.XX $XXX acquire marketable the $XXX will will invest this in providing warrants share. that each least per concluding starting an securities at as convertible with in forma transactions month million well streamline shares this structure in which Starboard, have for agreement stock money significantly at third cash. of in of the see executed in overview agreement, million of a will million quarter exercised all converted agreement be capital our XXXX. as

corporate in First, million processes as strategy. bolsters team, mentioned, in pipeline And least position acquisition to MJ as now at pursue this our Starboard invest and innovative will are Acacia. acquisition our in a $XXX platform, our deploy to discussed. capital agreement MJ capital

shares common four has capital more week. to achieve at investment million. million structure XXXX, offering be million will the means existing This in Acacia in offering actually offering least rights in with be interest our the much price Starboard one for this, in its XX.X% completed incremental a of maximum first XX.X% voting at per commence inclusive The committed ownership with new and all this Series Second, its offering XX than Acacia of every To exercise which share Starboard $XX.X convertible equity Acacia shareholders shares was investing resulting stock. intends preferred basis. least earlier share. an of quarter offering, $X.XX approximately of of ownership simpler the a XX in first shares. will purchase same to owned A warrants, approximately will on

Acacia's of company's its a stock expected and preferred following of quarter approval to be Incorporation, common XXXX to Meeting. Certificate Next, in into amendments Designation put to $XX in face Starboard of of convert Annual is committed at shareholders the convertible the value of XXXX, of second vote stock Certificate million to

Finally, down to will in Series its of notes share. million the at in This notes the XX.X July committed XXXX, warrants. the Starboard maturity $XX of $X.XX to of $XX secured these outstanding, has remaining $XX pay B warrants Starboard's million exercise senior in in the upon cash exercise in and million payment result per million

and to of A a million following has various warrant Starboard warrants and instruments; incremental $XX.X based million offering, compensation all June of XX. of additional to the investment XX derivative be with The estimated warrant book be million payment the rights XX to may Series business of at and securities the the by in exercise million million the to or paid book If changes capital these our rights remaining exercised transactions, transactions, in at remaining forma of share the these private commitment payments owing to in of reflect participation time course, each pro value value $X.XX purchased, time the sheet at liabilities be at in allotment negotiation B upon vary $XXX.X of canceled $XXX in these balance and rights as minimum offering connection our for will agreed earnings its million with changes of any the Series rights full the completion $X and to all July balance Series share. be million of compares its to time positions. potential million will an additional Acacia's any the book the were beyond beyond on early would of paid XX.X warrant value XXXX. the in Acacia immediately Starboard's commitment. Importantly, September of offering. of and This we value ultimate by minimum make on our shareholder in per the the XX and million share exercise Starboard In the was Starboard value $XX offering early B Reflecting in embedded raise $XXX.X exercise million securities $XX be

million. will million issued. million process Acacia million million would notes be embedded stock outstanding, million shares derivative stock be $XX will liabilities common have XX.X to eliminated be stock this approximately of once have be or summary, equity of cash of Acacia no face of securities X.X liabilities base the warrant attributable added will be share, in common be and would $XX.X XXX shares upon shares been have and eliminated million sale costs. approximately and marketable per common also would termination a value net XX% completed, of million shares common million representing $XX XX the million the Acacia and and will shares So will issued. payments of then the will eliminated, of A outstanding. preferred Starboard of has in own at $XX Series early transaction $XX warrants and capital cash preferred of of of $XXX of $X.XX Value will warrants exercise net

cash our parent, forward, should than Moving income and more costs. the general cash, million with expect we cover in ongoing administrative $XXX interest

our as acquisitions. and our burn be property least no are business to we we self-funding, opportunities intellectual creating fund expect business our little at explore industrial to to Assuming with printing for able operations value cash

$XXX.X or or September $XXX.X Now June or per $X.XX million, $XXX.X share per million, compared as the book December let of XX at third results. $X.XX was basic me share XX, million, turn XXXX. and quarter to GAAP value share, $X.XX to at XX per

all embedded which has includes share derivative instruments book balance impact GAAP over our increase these liabilities warrant of value this on in the XX, at company's the remember time the turn since Now of were issued. September price sheet and first reflected

upon be should converted. to these extinguished and convertible we warrants value is be will more all exercise or liabilities think of these instruments As preferred expiration it book consider our of useful stock, these

described, I the As transactions these liabilities. and capital in these of just the result Starboard preferred of a structure and securities will all in derivative without result elimination any clean

For with pro share per forma presented this have full of we to this agreement value reason, impact the book capture Starboard.

this of how the presented will staged take over these year will transactions a as time. basis better course over quarterly work to have this we time, illustrate the next on As place also over

rights pro expected our shares in following release in all on and first and $XXX will a exercised occurred sheet completed and time pro morning. of on quarter $X.XX. of balance this our exercise, published simplified million two cash this which book with we balance of in first to see forma million, in will included steps the week, offering note, earlier basis value by million value By We XX.X the sheet more the than per by expect end warrant forma share been Of of Series with The XXXX, of in Starboard. A we transactions converted, have of we sequence first the diluted vastly which a earnings the quarter. to book resulting will the this derivatives $XXX the outstanding and warrants you be July, a have have have of

Within of revenues quarter contribution to performance, transaction million for the compared terms the last ago. $X.X quarter $X.X contributed in closed in prior early in in that, a Now year with million of year. Printronix $XX.X the third as million, in were the revenue October quarterly year, no XXXX

income, Second, business. million year also compared in property the to the the loss operating timing development in last quarter, generated $XX Intellectual expense. our property $XX.X of was assertion, had This $XX.X loss and a operating this $X.X were third balance The General of improvement our $XX.X expenses and of contributed operating in Printronix million to million third of similarly reflection breaking compared quarter uneven parent million, slight expenses related the modest general to increased down, business administrative down Operating in And $X.X business revenue and to G&A the during flat the expenses inclusion year-over-year. loss of to a intellectual sized patent nature amortization. $X.X intellectual the a loss expenses. and revenue patent million Printronix administrative due business operating this were in million of quarter million property after parent a year ago. year. to last is related

of of quarter sized decline loss three the period, the unrealized security the million latter reflection in of the share during are on offset securities our gain over prices last positions the months. a realized $XX similarly in Our a

the share million, Our per million, of portfolio sciences in XXXX, GAAP XXXX, or the $X.XX of $XXX in that million $XX.X gains last IPO Recall due $X.XX the or the of Acacia $XX.X net in per third primarily value Nanopore. compared diluted quarter the acquired quarter life of net during third of to June income year. realized and recognized of share was unrealized diluted Oxford in to income

the due quarter. decline change the share quarter $XX.X of noncash recognized to to value Starboard in income the derivative the Acacia third in the warrant price fair million liabilities related of also during We and in

Now retired recall shares. loss Since totaled carryforward realized we $XX also, to also $XXX.X own value recall XXXX $XXX.X and of XXXX. we've last, in file will removes And XX% beginning repurchased common $XXX net and pursue And corporate our of clarifies we shelter shortly. establishes loss was relationship million More our senior and to then been September XXXX. carryforward capital in of our at and down the nearly vehicle the in December potential quarterly plus shareholders, time, from million well-resourced utilized debt operating stood at million our most secured a XX, senior notes at at detail secured $XXX fair this the made million securities release in $XX.X XXXX, with notes XX, have equity available from have million. at December issued gains. during concern at that We to Cash the on XX, we our that capital agreement new Starboard, differentiated to have increasingly believe on these report million structure. million morning results $XXX.X previously press collaborative complex Form acquisitions our Starboard, which XX-Q, and compared

an At marketable on measuring Going basis, phases securities and a cash transaction, for securities $X.XX, today. trading the completion forward, our per September be per essentially is believe important XXXX, announced all cash share stock marketable share the we where is assuming progress. metric Starboard our our of of and pro forma would XX,

Importantly, does future from the our are transactions. value this from of on excludes holdings, private create that of we which our any and businesses, may carried value intellectual any include all property it nor cost, basis industrial

can have income transactions we is operations has have advanced supported shareholders pipeline. ever for that acquire stock as we opportunities moving all processes And intend in today it burn do time. for potential pipeline this a targets price more long now not our pipeline getting MJ take through are been. our in These expand defined noted, to businesses. So Over This by and cash we to than of larger In investing and holdings. essentially, our cash continue of to time, on free. interest our summary,

And to back like in I'd we are disciplined the are serious. and we MJ. turn patient, valuations now over to are We call

Martin McNulty

Thanks, Rich.

very the transaction summarize per of of pro Starboard. book value and a to here, approximately for in strong our and So share processes and share. got we've completion $X.XX a built a with have have and strong team, and forma $X.XX securities marketable cash institutionalized We'll

as Rich cost. said, book at both reminder, a private operating includes As businesses our value our and

Additionally, acquisition interest be cash will to questions. our not holdings earned we'd any that, of mentioned, any on take intend pursuit do with as our to as we support burn strategy. pleased And the cash Rich

Operator

now with open The is coming And Anthony Thank is line question Anthony, your Craig-Hallum. you, ladies Stoss live. Instructions] [Operator and gentlemen. for questions. the from is floor first

Anthony Stoss

Thanks. you've MJ. for of I guess, CEO. Welcome time, aboard, short I period there interim know been but a as

Let [Technical your fire Difficulty] a to shareholders. just plans that me often up Most and what of me monetize get Viamet. How I are from let Viamet? monetizing lately, it's with couple it you most on do seem questions

Richard Rosenstein

Sure.

Tony. thanks, So

-- So which we this again is, have payments. a of have we approximately we as and of XX% you Viamet, in the know, payments earned of milestone those received couple essence, own milestone recipient royalties One, in which quarter of receiving of the the second then before third a year. anticipate And one small end quarter. there's larger year, payment. a in the milestone that we It one was was much the paid

we So excited us. But something And there that that minimum, opportunities about. are payments is that, excited monetize those differently, represents the at at minimum, stream royalty we're to quite If for payments. about receiving the a royalty a that. we're consider anticipate certainly milestone we that would and opportunity

Anthony Stoss

here, really that in around, holding the OpEx. you go-forward of should to mic think question ask at a OpEx? And rate of difficult revenues, since the jumps just but me Rich, like kind million we predict your $XX.X on It as always you're September, it. let Got on

Richard Rosenstein

going at of a based OpEx business, business little Our extent executed some Difficulty] the steady consider. we've substantially. partnerships to [Technical to that to that through OpEx to Printronix -- on a has that is that minimum that, the fairly patent vary business is more begins The up grow

organization may the upon we in a G&A that at see that's efforts, from development and and pursue. to grow. You see a the that's business transactions probably our the And based our we But for vary perspective, that level. activity going really parent moment that reasonable

it will acquisitions we're heavily. there activity, modest that There'll when there's be that. where periods of to we be in closer more less get very diligencing of So

a they'll but it based it's of it's very So upon to -- that going makes probably opportunities, not be start, going bad vary success-based place sense. to vary, and if is to sort

Anthony Stoss

kind then are then you the have IP since And on while hopes Wi-Fi if It's it. And there's high I out last update you last MJ. question know portfolio. a you mind sharing, wouldn't little if of it. saving of for guys share, two I Got Maybe the we've an questions. the an I'm on to for anything know been that? successful gate. had update

Richard Rosenstein

Sure.

one will So the we It's is One often don't excited portfolios. which that portfolio validated anticipated. had was something the update helpful you discussions than with commentary of that also of lot already, actually actually We return we're we've did we last large is marketplace, financial kind generated have of IP was had capital say we than it only that's about. in the portfolio potential specific licensees. more I that and lot standpoint invested a a meaningful thing but that settlement from around in not a mentioned the very additional the delivered have sooner year, that which quality

quickly to put board maximize is value, revenue as as to on the goal possible. Our not

value acquired So since for the our it has maximize we trust we're to looking only that enthusiasm of that portfolio. it. grown But

Anthony Stoss

can and It'd kind Am operating stuff then the relatively hopefully, sciences nice get of to stock so a optimistic And soon. that three going show can that large be of I value what a a been we the with part know own. the So it. before have of they I years investors Got it. don't Starboard was own I I'm underlying what life or own is. there the for am you of to Starboard agreement. know The part true ongoing to business have mean the I look own it's actually something, exited at I lot shareholders what ones I since acquisitions are Acacia. a no existing agreement, is, what going MJ, to of? Kohl's theme

anything thoughts your hear to that. to love Just on related

Martin McNulty

optimism. share Tony, you come spoke Yes. since We who the look, I and first spent had earnings first, optimism -- it at is of here. a the what appreciate the probably the And right are quarter and I after we that first board. and and that And call think effort team against end I time, we we in that considerable strategy. place on prosecute putting amount defining really processes have of the in I to

specific to better you focused question, a we So excellent executives, Kohl's? good asked bring with it's own are we of very very that partnership businesses opportunistic. going that make terms We're The we answer of very us. is, goal alongside existing acquiring executives in in we're whether our or can

we We're focused doesn't mean care an spent bilateral way, from latter areas, on XX but months I we attractive I us are -- tools I less And businesses. but time strategy, have. certainly that pipeline. fund attractive earlier, private acquire auction considerable think to acquire XX And can that create for today though toolkit amount -- We what and in hedge do discussions that with see are mature tool things. those as really limit allocated a as going to technology think health those think this moment our other that's the the something we're say, pretty we're not evaluating acquire and the We're that in I the we areas. public the allocation businesses. to have of is an of businesses. interesting recently can time six building guess industrials, a private ago, hybrid there standpoint. in at outside of even I process, is public enthusiastic public opportunistic ago, private, we in divisions only around catalyst We would ourselves regular that, focused a we have it or If ability private we said whereas direction. payback that, including time months to very or is itself, in businesses several can months for We in equity to we

very things seeing catalyst public we the interesting businesses. with we're buyer those a a can where really do and lot of in So a opportunities be interesting and create some markets

I think as Rich said it it well. and said I

We process, the being have but we're we and valuation. our do team. have can the approach we We deliberate pipeline, the this, very about have our

Richard Rosenstein

And Tony, to could if point one you clarify I want I made. that just --

the science case. Starboard portfolio that with before And us. life only that Starboard's had the acquisition of was that's in place That's possible not was deal. the partnership -- actually because You importantly, transaction said really

opportunity. our put to or million balance escrow lifetime it So transaction. cash had in the the beginning was approximately once we a $XXX in entered of -- not which science have of the something the And on in we explore to portfolio, Starboard set we to we at an up time. $XXX recall looking at the a of this And It up of was relationship to But million into back sheet this effectuate what evaluate probably in that you time. November of frankly, buy was And was order found at the kind to COVID, at XXXX. needed for. opportunistic. do to portfolio was ready look life or cash It investments, were not we were

it's not would company, cost many know, to And value with nearly our we been that -- $XXX based largely still and of value in that with that as potentially been but more important for and delivered have if you So more. on already know we interested possible Starboard the it, And with it's of been have and than value. million is book in of the up $XXX has I while transaction our have capital availability that it's others of of focus million private conversations didn't recognize book primary transaction, put you holdings an positions the additional the our and we partnership capital. at

has value, created transaction $XXX more would the been Starboard in hadn't an that been million or have So incremental partnership. not if for it possible

in very that's has stack, transaction. many respects, of that pleased that. value. set obviously a We're So think up but we're with focused an And our do to distinction doing very that It comparison to created make. very on next difficult I sort important on it enormous

Anthony Stoss

seeing of explanations next and forward for to looking both Thank you comes you. to what those Thanks guys detailed to Acacia.

Richard Rosenstein

Yeah. Thanks, Tony.

Operator

Instructions] Brett, Brett Montgomery please [Operator have proceed. we with Janny Reiss Up next, Scott.

Brett Reiss

gentlemen. Hi,

Martin McNulty

Good morning.

Richard Rosenstein

Brett. Hey,

Brett Reiss

Hi. morning. Good

terms timing simplification first in preceding acquisition? for the the the before trigger are approval to acquisition, on of conditions have the any pull that structure the In a first you in the have example, make can have there happen do of to deal? shareholder you before capital Like, you your of pocket

Martin McNulty

No.

Richard Rosenstein

don't. we No,

Brett Reiss

Okay.

waiting until because the shoe to the year just market you're doing think after diligence another of terms we're the due or So in drop of volatility? maybe you there's simply additional first

Martin McNulty

I mean, a it's I Brett, think Yes. question. great

we're at and of As really advancing transactions There the are and of right rigor It's year. of of decisions. that making that And process our pipeline, lot thought we our they that question saw very their we favor. pricing our lives are we're know, things are the analysis were the moved as look away have not first at you pipeline. a things that such sure us. of undertaking things that the has attractive There stages in own. pricing attractive of It's very we a waiting until of question investment in making a from different we're moved

we pipeline work phase not and transaction. the And we'll -- the move close that's get pipeline of is so our we'll and our that can stage things in something the making process, of stages investment as where a in final something. decision they through There closing to advance the

into things we're not until it's into the take up. possible stage on count, of So count year. to of we that moved We sure the shots on It's the as question and the up. shots that as getting the goals the know, sure many advancing we're to now team and higher in many making beginning a as as were waiting getting can. continuing going shot with shot lot you analogy. we're of our if opposing use hockey is we goal. higher it, a I probability hockey the of And wasn't players, And think And children making neutral job zone, We've the of doing puck goal are that a my our opposing as offense zone. and the kind in about zone spent our zone, and they decent time getting the

we're on. So what focused that's

Brett Reiss

Right.

if realize important million to how Starboard, offering yes, be acquisition higher to of to rights? the will $X.XX might stock from from and, the to in attention investing shareholders of don't than sort to attract shareholders? the And a rights is who's capital hence, the the that other to answer incentivized to other the so important, market, extra us at at XX it's committed you come some have price is, exercise their that $X.XX company the Now exercise make

Richard Rosenstein

will Great we're that driving offering rights question, that be I shareholders we not believe more in do Brett. may at mean very per there's then value. than can the then demonstrate to investors on we value, interested $X.XX we shareholder that, price. If be if we attractive. understand share focused And that in that can't investing

would to disciplined, as We're our drive just and should we that price timing that's be upon we're an good to we we focus. We timing to accomplish to price. us rather that a and to If -- Starboard, catalyst attractive on predictions that based deals we sooner, are would quickly, important with move it's it. than going it's negotiated But goes, find can the but the of to But can a worked think stewards offering quickly love as just as instance, we realistic of announcement promises far making sake we we acquisition not for rights make offering before close to happen. rush If remain for prove going certain going we shareholders on to attractive see. around the opportunities for date, and And be do that want for love when rights something that the so a So that not opportunity. about capital successful. something of we do close very we can something making we're to going it.

Brett Reiss

annual Berkshire's a read that purchase. Right. got of criteria like would One when he's he checklist businesses in report, one, you last to

can kind you're minimum And you size that's is refresh spot? your In what recollection, and are looking of of what maximum on, terms we sweet there focusing our for? deal a

Martin McNulty

Yes, Brett.

checklist plan criteria we a to also and together checklist put a we through of a that acquire go business. So once of we have

in Berkshire of we've admirers respect. that are we that adopted So And for ourselves.

appreciate we you bringing up. So that

looking of we that we what operating but combination This believe whom stable. doing expertise better. with within and with for, businesses of that we're relationships partnership we're teams public can companies, is existing for we're a in have partnership companies, relationships. we Starboard in a looking And with board they do have we believe companies terms make with our area in and we with looking can in that Acacia's better In that lot executives not bring we valuable as make of private in teams, to on can very

high really least can different that's we're level, at that forms. what so and a for many take at And looking

of can terms not of we're acquire. business, to size the that size of we constrained In really business

that Rich acquired you smaller As public that was the on mentioned side. larger. in the year ago, bid that much almost Printronix a you've And on know, as businesses we we've are earlier, seen out

our cash balance have from sheet. We

We other participate in have relationships like us. to institutional alongside opportunities these with that like large like folks investors

really it this so situation. comes And down to

formation, on mentioned, to think we of like disciplined great I economy partnership can around businesses sciences ultimately, that precluded that in in of trying is that we precluded attractive, acquire people focused something we focused we but the life of not and if other the again better portfolio We're a and, we make stay table. from the really on it's right be As economy with think things not them smart if are which attractive. couple from areas areas key find doing we very to We're doing are now. a

Brett Reiss

break a Thank course, best taking question of the of Great. say leg, for luck. I’ll you my and

Richard Rosenstein

Thanks, Brett.

Martin McNulty

try break I’ll to Brett. leg Thanks, the not down.

Brett Reiss

Okay.

Operator

a have Formidable with coming Adam We Eagleston Instructions] question from [Operator Asset Management.

Your line live. is

Adam Eagleston

think, Hello, large gentlemen. free the Rich the million, tell value as $XXX The shareholder Happy and great Appreciate because see us a which in and hand, that the other, on buyback. thinking that is, book I ancillary price on the you're how the between narrowed Again, is on think, but all long-time of the one mentioned, about time part for getting businesses congrats $XXX to here. the discount I between question today. restructuring.

capital walk stock you do more the appreciate decision, on those shots goal? as shots part allocation but of own one us your goal how through your maybe analogy, think of on So about

Richard Rosenstein

repurchased if of certainly would Thanks, capital consider trades We and find Adam. to so. aren't we've resuming certainly the last XX of at. year stock. as value discount our million We the it or mindful are able our Look, of we better for own that shares deployment. -- that And in the opportunities

out the We have been of market.

have that's primary capital trading it's periods the we strategic the consider. shrinking our the in As stock you for commit and dry conducting we're know, sheet. attractive negotiation to having the that, balance But of the focus. where don't investment with idea having that certainly and very where with sort our of is we provide like first make necessarily would foremost, opportunities Starboard opportunities think is said -- acquisitions, we been not sake simplification and as are very that of something we with And -- our going capital on mindful powder shrinking this we've and the of But to mission. on so recapitalization to returns that to consistent of return

Adam Eagleston

Got it.

that to hurdle rate how about of somewhat think So service do does that? level your or you of book value discount

Richard Rosenstein

Yeah.

in to mean most would that back think against always want I way about attractive own that's think a appeal we have we deploy to of good stock. opportunities And the buying I measure it. way possible. our capital, the deploy to we it

we set us. for -- high So that a hurdle

Adam Eagleston

Appreciate Fair enough. Thank you. Okay. it.

Richard Rosenstein

Thank you.

Operator

Okay.

I'd queue. to like turn back management closing to We have for questions remarks. no further in now it

Martin McNulty

the this Thanks platform us Thanks, morning. the everyone. the Thanks support for and optimism here. time the thoughtful the with questions. taking about for for And thanks

to to you some continue develop, continue moving will we have as deals and We forward. things update

look you forward quarter. next to we So to talking

Operator

Thank you, gentlemen. This conclude and ladies today's conference. does

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

Acacia Research (ACTG) 10 Nov 222022 Q3 Earnings call transcript