Acacia(US:ACTG)2024-05-11 15:51Financial Data and Key Metrics Changes - The GAAP book value at March 31, 2024, was $589.6 million or $5.89 per share, compared to $5.90 per share at December 31, 2023 [14][18] - Total revenues for the first quarter were $24.3 million, up from $14.8 million in the same quarter last year, reflecting a significant increase [19] - The net loss attributable to Acacia was $0.2 million or $0.00 per share, compared to a net income of $9.4 million or a loss of $0.07 per diluted share in the first quarter of last year [22] Business Line Data and Key Metrics Changes - The intellectual property business generated $13.6 million in licensing and other revenue during the quarter, compared to $4.2 million in the same quarter last year, indicating strong growth [19] - Printronix generated $8.8 million in revenues during the quarter, down from $10.6 million in the same quarter last year [20] - Benchmark, the energy operations unit, generated $1.9 million in revenue during the quarter, excluding gains on hedging contracts [20] Market Data and Key Metrics Changes - The cash, cash equivalents, and equity securities at fair value totaled $461.7 million at March 31, 2024, compared to $403.2 million at December 31, 2023 [23] - Cash per share stood at $4.39 per share as of March 31, 2024 [24] Company Strategy and Development Direction - The company is focused on two main strategies: growing cash flow and earnings from current businesses and evaluating opportunities to acquire new businesses [5] - The acquisition of Benchmark significantly expands the portfolio, adding approximately 140,000 net acres and 470 operated producing wells [9] - The company aims to deploy capital into new acquisitions across various sectors, including industrials, technology, and healthcare [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the M&A environment, noting a strong pipeline of opportunities in both public and private markets [13] - The company is not reliant on leverage for returns and is seeing traditional banks reemerging, which may allow for opportunistic leverage use [13] - Management indicated that while they are not looking to make macro-related bets, a hard landing could present good buying opportunities [40] Other Important Information - The company has approximately $400 million in capital to deploy into new acquisitions [12] - The Board of Directors nominated Michelle Felman as an independent director, bringing extensive experience in real estate, finance, and investing [15][16] Q&A Session Summary Question: Valuation of Benchmark - The investment in Benchmark is marked at cost, and the book value did not increase due to deal-related expenses [26][27] Question: Expected EBITDA from Benchmark - Benchmark is expected to generate approximately $45 million in EBITDA, with Acacia entitled to 73.5% of that amount [28][30] Question: Acquisition Strategy - The company is looking for acquisitions with a favorable risk/reward profile and is not focused on making acquisitions for the sake of it [37][38] Question: Cash on Balance Sheet - Cash and cash equivalents were reported at $439 million, with the total including equity securities at $460 million [43][44] Question: Stock Buyback Plans - The company has not yet bought back any stock, evaluating opportunities for acquisitions instead [48][50] Question: Income from Liquidity - Interest income for the quarter was reported at $4.9 million [60]