Acacia Research Corporation · NASDAQ:ACTG
Acacia Research — Investor Presentation (June 2024)
23 slides from Acacia Research's investor presentation, Jun 30, 2024
Slide 1: Corporate Overview
Corporate Overview As of June 30, 2024 | Nasdaq: ACTG
Slide 2: Disclosures
Disclosures Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based upon the current expectations of Ac
Slide 3: Why Invest In Acacia
Why Invest In Acacia Value-oriented capital allocator with a disciplined focus on acquiring and operating businesses with a view towards 1 strong free cash flow generation Experienced management team, constituted in late 2022, has spearheaded robust book value per share growth, with 2 compensation t
Slide 4: Company Overview
Company Overview Company Overview ACTG At A Glance | June 30, 2024 Book Value (“BV”) $596.7 Acacia (NASDAQ: ACTG) is a value-oriented acquirer of businesses across public and private markets. We Common Shares 100.4 acquire businesses where we can tap into our deep Book Value Per Share (“BVPS”) $5.95
Slide 5: Our Guiding Principles
Our Guiding Principles Our guiding principles are the cornerstones of our success 1 2 3 Capital Discipline Operating & Outstanding FCF Generation, Financial Excellence Leadership & Exceptional BVPS Accretion, and Operating Team Stock Price Growth ▪ Focus on Margin of Safety ▪ Focus on Cash Flow ▪ Fo
Slide 6: We Create Shareholder Value By Building Excellent Businesses
We Create Shareholder Value By Building Excellent Businesses We acquire undervalued businesses with strong fundamentals and partner with experienced operators to maximize margins and cas h flow Acacia Target Universe Target Segments ▪ Total enterprise value of $1B or less; however, we may pursue lar
Slide 7: Positioning Acacia to Accelerate Growth & Book Value Per Share
Positioning Acacia to Accelerate Growth & Book Value Per Share Acacia transforms & expands its portfolio under skilled and experienced leadership Acacia Announces Acacia Announces Organizational and Acacia Research Acacia Closes Sale of Closing of Benchmark Acacia Research Financial Restructuring Ap
Slide 8: Acacia's Strategic Relationship with Starboard Value
Acacia’s Strategic Relationship with Starboard Value Expanding Acacia’s network and resources Acacia’s strategic relationship with Starboard Value provides the Company with: ▪ Expanded access to industry expertise, and… ▪ An expanded network of operating partners with whom we evaluate potential acqu
Slide 9: Acacia Leadership Team
Acacia Leadership Team Broad and diverse skill set with long-term research and execution experience MJ McNulty Kirsten Hoover Chief Executive Officer Chief Financial Officer ~25 Years 20+ Years Long-Term Relationships, Daniel Troy George Broadbin Robert Rasamny Partnership-Oriented Culture Principal
Slide 10: Acacia Board of Directors
Acacia Board of Directors Experienced and diverse, providing strong governance and clear objectives Gavin Molinelli Chair of the Board Since 2022 ~20 Years of Experience Distinguished Board With Diverse Expertise and Backgrounds Michelle Felman Isaac T. Kohlberg MJ McNulty Independent Director Indep
Slide 11: Acacia Segment Overview
Acacia Segment Overview Acacia focuses on opportunistic situations within the technology, energy, and industrials segments Technology Energy Industrials Opportunistic Life Sciences Oil & Gas Industrial Printing Intellectual Property Life Sciences Acacia is focused on acquiring and building businesse
Slide 12: What We Own Today | LTM Q2 2024
What We Own Today | LTM Q2 2024 Acacia focuses on acquiring and building businesses that have stable cash flow generation Acquisition Purchase LTM LTM Adj. EBITDA Non-Recourse Business Business 1 Business Segment Date TEV Revenue Adj. EBITDA Margin (%) Debt Cash HQ 11/13/2023 $170.5 $16.9 $9.0 53.2%
Slide 13: Key Performance Metrics
Key Performance Metrics Acacia seeks to generate consistent growth in book value per share and free cash flow Book Value Per Share Consolidated Revenue $5.95 (1) $6.07 (1) $92.3 $5.90 $5.89 $5.95 (1) (1) $5.10 $5.03 $5.04 $24.3 $25.8 $14.8 $10.1 $7.9 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q1'23 Q2'23 Q
Slide 14: Energy Operations
Energy Operations Revenue $14.2 ▪ Benchmark Energy is an independent oil & gas company based in Q4’23 results for the post Q2’24 includes partial impact Austin, TX engaged in the acquisition, production and development acquisition period from acquisition on 11/13/2023 – 12/31/2023 of oil & gas asset
Slide 15: Energy Operations (Cont'd)
Energy Operations (Cont’d) Benchmark Asset Map Operated Production (Mboe ) 493,801 Q2’24 includes Q4’23 results for the post partial impact acquisition period from acquisition on 11/13/2023 – 12/31/2023 April 17, 2024 76,027 37,496 Q4'23 Q1'24 Q2'24 Normalized G&A Expense (% of Revenue) (1) Operator
Slide 16: Industrial Operations
Industrial Operations Revenue $10.6 $8.6 $8.8 ▪ Acquired Printronix in October 2021 for $37M $7.5 $8.3 $6.3 ▪ Printronix is a leading manufacturer and distributor of industrial impact printers, also known as line matrix printers, and related consumables and services ▪ Printronix’s line matrix printe
Slide 17: Intellectual Property Operations
Intellectual Property Operations Revenue $82.8 ▪ Acacia’s intellectual property business is engaged in the licensing and enforcement of patent portfolios and patented technologies, through obtaining the rights in the patent portfolio or purchasing the patent portfolio outright $13.6 ▪ Operates as a
Slide 18: Appendix: Financial Reconciliations
Appendix: Financial Reconciliations
Slide 19: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information GAAP or U .S. GAAP refer t o gen erally a ccepted a ccou nting principles in the U nited S tates. From time to tim e the Company m ay include certain “no n-GAAP” finan cial m easures in it s invest or presenta tio ns, earnin gs releases, ea rnings conference cal
Slide 20: Reconciliation of GAAP to Non-GAAP | Acacia Consolidated
Reconciliation of GAAP to Non-GAAP | Acacia Consolidated Three Months Ended Three Months Ended June 30, September 30, December 31, March 31, June 30, LTM Q2 Adjusted Net Income / (Loss) 2024 2023 2023 2023 2024 2024 2024 GAAP Net Income / (Loss) ($8.4) ($18.8) $1.6 $74.8 ($0.2) ($8.4) $67.8 Legal Co
Slide 21: Adjusted Book Value
Adjusted Book Value Three Months Ended Three Months Ended June 30, September 30, December 31, March 31, June 30, Starboard Recapitalization Impact on Book Value 2024 2023 2023 2023 2024 2024 Book Value - Pre-Starboard Recapitalization $596.7 $335.4 $503.6 $589.6 $589.6 $596.7 Impact of Series A Pref
Slide 22: Adjusted EBITDA | By Segment
Adjusted EBITDA | By Segment Three-Month Period Ended Three-Month Period Ended June 30, September 30, December 31, March 31, June 30, LTM Q2 Energy Operations 1 2024 2023 2023 2023 2024 2024 2024 GAAP Operating Income / (Loss) $3.2 -- -- ($0.1) $0.2 $3.2 $3.3 Depreciation, Depletion & Amortization 3
Slide 23: Contact Us
Contact Us Acacia Research Corporation Transfer Agent: 767 Third Avenue, Floor 6 New York , NY 10017 ComputerShare (332) 236-8484 P.O. Box 43006 IR@acaciares.com Providence RI 02940-3078 www.acaciaresearch.com 150 Royall St., Suite 101 Canton, MA 02021 Shareholder Services: 800-962-4284 or internati