Acacia(US:ACTG)2024-11-12 21:11Revenue Performance - 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[14]. - The company reported a total revenue of $73.47 million for the nine months ended September 30, 2024, compared to $32.79 million in the same period of 2023, representing a 124.7% increase[14]. - For the nine months ended September 30, 2024, total revenues from license agreements were $19.4 million, with recurring license revenue agreements contributing $2.2 million[53]. Costs and Expenses - The total costs and expenses for the three months ended September 30, 2024, were $33.58 million, up from $23.24 million in the same period of 2023, indicating a 44.4% increase[14]. - The cost of revenues for intellectual property operations was $5.71 million for the three months ended September 30, 2024, compared to $5.47 million in the same period of 2023, a slight increase of 4.4%[14]. - General and administrative expenses for the three months ended September 30, 2024, were $11.12 million, slightly down from $11.61 million in the same period of 2023, a decrease of 4.2%[14]. - Engineering and development expenses for industrial operations were $0.11 million for the three months ended September 30, 2024, compared to $0.17 million in the same period of 2023, a decrease of 35.3%[14]. Net Loss and Earnings - Net loss attributable to Acacia Research Corporation was $13.996 million for the quarter, compared to a net income of $1.636 million in the same period last year[15]. - Basic net loss per common share was $0.14, compared to a loss of $0.02 per share in the previous year[15]. - The company reported a net loss including noncontrolling interests of $11.657 million, compared to a net income of $2.762 million last year[17]. - The company reported a net loss of $20,675 for the nine months ended September 30, 2024, compared to a net loss of $6,570 for the same period in 2023, indicating a significant increase in losses[23]. Cash Flow and Financial Position - Cash flows from operating activities provided $70,384 during the nine months ended September 30, 2024, compared to a cash outflow of $17,962 for the same period in 2023[23]. - The company had cash and cash equivalents of $360,050 at the end of September 30, 2024, up from $344,733 at the end of the previous year[23]. - The total accumulated deficit increased to $262.357 million as of September 30, 2024[20]. Strategic Acquisitions and Investments - The company anticipates continued growth in revenues driven by strategic acquisitions and market expansion efforts[5]. - On November 13, 2023, the company invested $10.0 million to acquire a 50.4% equity interest in Benchmark Energy II, LLC, which has over 13,000 net acres and an interest in over 125 wells[34]. - On October 18, 2024, the company acquired Deflecto for $103.7 million, funded by a $48.0 million secured term loan and cash on hand[38]. - Benchmark's strategy focuses on acquiring cash-flowing oil and gas properties with low leverage and robust commodity hedges[34]. Share Repurchase and Stockholder Actions - 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]. - As of November 7, 2024, a total of 3,007,294 shares have been repurchased at an average price of $4.67 per share, with $6.0 million remaining under the repurchase program[197]. - During the quarter, a total of 1,537,122 shares were repurchased at an average price of $4.70 per share[200]. Tax and Legal Matters - The effective tax rates for the three months ended September 30, 2024, and 2023 were 89% and (8)%, respectively, while for the nine months ended September 30, 2024, and 2023, they were (11)% and 11%[103]. - The Company has total unrecognized tax benefits of approximately $757,000 as of September 30, 2024, which would impact the effective tax rate if recognized[104]. - Acacia incurred a non-recurring legacy legal expense of $12.9 million for the nine months ended September 30, 2024, primarily due to the settlement of the AIP Matter[191]. Inventory and Asset Management - Total inventories increased to $12.2 million as of September 30, 2024, from $10.9 million as of December 31, 2023[116]. - The total carrying amount of other intangible assets was $30.9 million as of September 30, 2024, compared to $33.6 million as of December 31, 2023[124]. - The Company recorded an impairment loss for long-lived assets when expected undiscounted future cash flows are less than the carrying amount of the asset[87]. Operational Efficiency and Management - The company supports existing management in initiatives to reduce costs and enhance operational efficiency[33]. - The company evaluates and records provisions for excess and obsolete inventory based on forecasted demand and market conditions[77]. - The Company contracts third parties for on-site repair services, with maintenance service agreements recognized on a straight-line basis over the contract period[60].