Acacia(US:ACTG)2024-08-08 21:11Financial Performance - Total revenues for the quarter ended June 30, 2024, were $25.8 million, a significant increase from $7.9 million in the same quarter of 2023, representing a 227% year-over-year growth[25]. - The net loss attributable to Acacia Research Corporation for the quarter was $8.4 million, an improvement from a net loss of $18.8 million in the same quarter of 2023[22]. - Basic net loss per common share was $0.08, compared to $0.36 in the prior year, indicating a reduction in loss per share[23]. - Total costs and expenses for the quarter were $30.6 million, up from $20.4 million in the same quarter of 2023, reflecting increased operational activities[25]. - Operating loss for the quarter was $4.8 million, a decrease from $12.5 million in the same quarter of the previous year[25]. - The net loss for the six months ended June 30, 2024, was $9.018 million, slightly improved from a net loss of $9.332 million in the same period of 2023[39]. - Operating activities generated net cash of $70.955 million, a significant recovery from a cash outflow of $19.122 million in the prior year[39]. Revenue Sources - Intellectual property operations generated revenues of $5.3 million, compared to $0.4 million in the prior year, marking a 1,233% increase[25]. - Energy operations contributed $14.2 million in revenues for the quarter, with no prior year comparison as this segment was newly established[25]. - For the three months ended June 30, 2024, paid-up license revenue agreements generated $4,888,000, a significant increase from $75,000 in the same period of 2023[65]. - Recurring License Revenue Agreements for the same period totaled $445,000, up from $319,000 in 2023[65]. - Total license revenues for the three months ended June 30, 2024, reached $5,333,000, compared to $394,000 in 2023, marking a substantial growth[65]. - Printronix's net revenues for the three months ended June 30, 2024, were $6,335,000, down from $7,510,000 in 2023[72]. - For the six months ended June 30, 2024, Printronix reported total revenues of $15,176,000, a decrease from $18,137,000 in the same period of 2023[72]. - Benchmark's total revenue for the three months ended June 30, 2024, was $14,170,000, compared to $16,026,000 in 2023[78]. Assets and Liabilities - Acacia Research Corporation's total liabilities and stockholders' equity stood at $753.6 million as of June 30, 2024, compared to $633.5 million in the previous year[19]. - As of June 30, 2024, cash and cash equivalents increased to $386.988 million from $340.091 million at the beginning of the period, reflecting an increase of $46.897 million[39]. - Total stockholders' equity increased to $335.433 million as of June 30, 2024, up from $269.322 million at the end of 2022[34]. - The company reported a change in fair value of equity securities amounting to $31.445 million, compared to a loss of $9.960 million in the previous year[39]. - The company’s oil and natural gas properties had a net value of $192.6 million as of June 30, 2024, significantly up from $25.1 million as of December 31, 2023[128]. Investments and Acquisitions - The company invested $10 million to acquire a 50.4% equity interest in Benchmark Energy II, LLC, which includes over 13,000 net acres and interests in over 125 wells[50]. - On April 17, 2024, Benchmark completed a transaction to acquire upstream assets in Texas and Oklahoma for $145 million, with the company's contribution being $59.9 million[52]. - The company recognized an asset retirement obligation of $28.8 million as part of the acquisition of oil and gas producing properties[117]. Stock and Shareholder Information - The weighted average number of shares outstanding increased to 100,079,803 from 58,408,711 in the prior year, affecting per share calculations[23]. - Starboard Value, LP holds approximately 60.9% of the common stock, providing access to industry expertise for evaluating acquisition opportunities[45]. - The Board approved a stock repurchase program for up to $20.0 million, with a cap of 5,800,000 shares of common stock[196]. - No stock repurchases occurred under this program for the three and six months ended June 30, 2024[196]. - The 2024 Acacia Research Corporation Stock Incentive Plan reserves 11,168,000 shares for issuance, plus 1,421,848 shares transferred from the 2016 Plan[204]. Expenses and Costs - The company recorded a compensation expense for share-based awards of $1.749 million for the six months ended June 30, 2024, compared to $1.351 million in the same period of 2023[39]. - The total amortization expense for other intangible assets for the six months ended June 30, 2024, was $7.5 million, compared to $6.1 million for the same period in 2023, indicating a year-over-year increase of approximately 22.95%[136]. - The company’s asset retirement obligation as of June 30, 2024, was $29,261,000, with a current portion of $1,543,000[139]. Tax and Legal Matters - The company's effective tax rates were (44)% and (8)% for the three months ended June 30, 2024 and 2023, respectively, and (48)% and 10% for the six months ended June 30, 2024 and 2023, respectively[108]. - As of June 30, 2024, the company had total unrecognized tax benefits of approximately $757,000, which would impact the effective tax rate if recognized[110]. - An accrual of $14.5 million was recorded as of June 30, 2024, related to a dispute involving former executives' profit interests, which will result in a payment in Q3 2024[192]. Miscellaneous - The company has not obtained control of any new patent portfolios during the six months ended June 30, 2024[48]. - The company has made no material payments related to guarantees and indemnities, estimating the fair value of its obligations to be immaterial[193]. - The lease for the New York office was amended to extend the term for Unit 601 for 40 months commencing on April 1, 2024, with annual rent increases[181].