Acacia(ACTG) - 2024 Q3 - Quarterly Results

Revenue Performance - Generated $23.3 million in consolidated revenue for Q3 2024, up 131% from $10.1 million in Q3 2023[4] - Total revenues for the three months ended September 30, 2024, were $23.3 million, a significant increase from $10.1 million in the same period last year, representing a 130.7% growth[13] - Total revenues for the three months ended September 30, 2024, were $23.31 million, a significant increase from $10.08 million in the same period of 2023, representing a 131.5% year-over-year growth[25] - Energy Operations contributed $15.8 million in revenue, while Industrial Operations generated $7.0 million, reflecting a decrease from $8.3 million in the same quarter last year[10] - Intellectual property operations generated revenues of $0.49 million for the three months ended September 30, 2024, compared to $1.76 million in the same period of 2023, reflecting a decline of 72.2%[25] - Energy operations reported revenues of $15.82 million for the three months ended September 30, 2024, with no revenues recorded in the same period of 2023, indicating a strong market entry[25] Financial Losses - Recorded a GAAP net loss of $14.0 million, or $0.14 diluted net loss per share, compared to a net income of $1.6 million, or $0.03 diluted net income per share in Q3 2023[10] - GAAP net loss for the three months ended September 30, 2024, was $(14.0) million, compared to a net income of $1.6 million in the same period last year[13] - Net loss attributable to Acacia Research Corporation for the three months ended September 30, 2024, was $(13.99) million, compared to a net income of $1.64 million in the same period of 2023[26] - The company reported a basic net loss per common share of $(0.14) for the three months ended September 30, 2024, compared to $(0.02) for the same period in 2023[26] Operating Performance - Achieved Total Company Adjusted EBITDA of $1.7 million for Q3 2024, with Operated Segment Adjusted EBITDA of $6.9 million[4] - Total Company Adjusted EBITDA for the three months ended September 30, 2024, was $6,332 thousand, compared to a GAAP operating loss of $2,087 thousand[34] - For the nine months ended September 30, 2024, the consolidated total Adjusted EBITDA was $6,332 thousand, with Parent Costs at $(4,103) thousand[34] - The operating loss for the three months ended September 30, 2024, was $(10.3) million, an improvement from $(13.2) million in the prior year[13] - The operating loss for the three months ended September 30, 2024, was $(10.27) million, an improvement from $(13.15) million in the same period of 2023[25] - The Energy Operations reported a GAAP operating income of $156 thousand, with depreciation, depletion, and amortization expenses of $422 thousand[34] - The Industrial Operations had a GAAP operating loss of $(234) thousand, with depreciation and amortization expenses of $683 thousand[30] - Intellectual Property Operations Adjusted EBITDA was not specified for the three months ended September 30, 2024, but the GAAP operating loss was $(7,138) thousand[36] Cash Flow and Assets - Generated $70.4 million in operating cash flow during the nine months ended September 30, 2024[3] - Cash, cash equivalents, and equity investments measured at fair value totaled $374.2 million as of September 30, 2024, down from $403.2 million at December 31, 2023, primarily due to acquisitions and stock repurchases[16] - Cash and cash equivalents increased to $360.05 million as of September 30, 2024, up from $340.09 million as of December 31, 2023[24] - Total assets rose to $707.57 million as of September 30, 2024, compared to $633.55 million as of December 31, 2023, reflecting a growth of 11.6%[24] Liabilities and Equity - Total liabilities increased to $129.01 million as of September 30, 2024, compared to $43.94 million as of December 31, 2023, indicating a significant rise in financial obligations[24] - Acacia's total indebtedness was $70.0 million in non-recourse debt as of September 30, 2024, while the parent company's total indebtedness was zero[16] - Book value per share was $5.85 at September 30, 2024, down from $5.90 at December 31, 2023[3] - The book value per share as of September 30, 2024, was $5.85, which would have been $6.00 excluding non-recurring legal expenses of $14.9 million[17] Stock Repurchase and Acquisitions - Acquired Deflecto Acquisition, Inc. for $103.7 million, expected to generate approximately $128-$136 million in revenue in 2024[4] - Repurchased 3.0 million shares for $14.0 million as part of the stock repurchase program[3] - The company has repurchased 3,007,294 common shares for $14.0 million as part of its stock repurchase program, which has a cap of $20.0 million[18] - The company’s cash reserves were approximately $280 million for potential future transactions following the Deflecto acquisition[3] Other Financial Metrics - General and administrative expenses were $11.1 million, a decrease from $11.6 million in the same quarter last year[10] - Unrealized losses for the three months ended September 30, 2024, were $(4.1) million, compared to unrealized gains of $8.8 million in the prior year[13] - The company reported a realized hedge gain of $800 thousand for the three months ended September 30, 2024[34] - Legacy matter costs for Parent were $2,193 thousand for the three months ended September 30, 2024[34] - Stock-based compensation for the three months ended September 30, 2024, was $858 thousand, with $415 thousand attributed to Parent Costs[34] - The company emphasizes that Adjusted EBITDA is a non-GAAP financial measure intended to provide investors with useful supplemental information[34]