180 Degree Capital Corp. (NASDAQ:TURN) Q2 2019 Earnings Conference Call - Final Transcript

Aug 15, 2019 • 09:00 am ET


180 Degree Capital Corp. (NASDAQ:TURN) Q2 2019 Earnings Conference Call - Final Transcript


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Daniel B. Wolfe

Good morning and welcome to 180 Degree Capital Corp.'s Second Quarter 2019 Financial Results call. This is Daniel Wolfe, President and Portfolio Manager of 180 Degree Capital. Kevin Rendino, our Chief Executive Officer and Portfolio Manager, and I, would like to welcome you to our call this morning.

All participants are currently in a listen-only mode, Following our prepared remarks, we will open the line to questions.

[Operator Instructions]

I would like to remind participants that this call is being recorded and that we will be referring to a slide deck that we have posted on our Investor Relations website at ir. 180degreecapital.com under Financial Results.

Please turn to Slide 2 that contains our safe harbor statement. This presentation may contain statements of a forward-looking nature relating to future events. Statements contained in this presentation, that are forward-looking statements, are intended to be made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to inherent uncertainties in predicting future results and conditions. These statements reflect the Company's current beliefs, and a number of important factors could cause actual results to differ materially from those expressed herein. Please see the Company's filings with the SEC for a more detailed discussion of the risks and uncertainties associated with the Company's business that could affect the Company's actual results. Except as otherwise required by federal securities laws, 180 Degree Capital Corp. undertakes no obligation to update or revise these forward-looking statements to reflect new events or uncertainties.

I would now like to turn the call over to Kevin.

Kevin M. Rendino

Thank you, Daniel, and good morning, everyone. Lot to cover this morning.

I want to spend our time on two separate topics. Obviously, the first topic will be the second quarter. Second topic will be the significant events that have taken place in the third quarter that had resulted in a meaningful rise in our NAV through last night's close.

Let's start on the summary of Q2 2019 page. We saw an increase in our share price of 6%. We saw an increase in our NAV of 2%; our stock price to our NAV advanced from 67% to 70%; our cash and liquid securities advanced 6%.

On the public side, all of the gains of in our NAV came from our public holdings, led by companies, Adesto, TheStreet, Iteris and Airgain. We had decreases in value for Mersana and Emcore. And we had two materially new positions for us; one is named Quantum, the other is named TheMaven. They were undisclosed positions at the time of the Q2 report and we wanted to disclose them today. Our private portfolio change was off a $0.02, led by PWA; we had an increase in AgBiome; we had a decrease in D-Wave. We'll get into all of this as the slide presentation moves on. It should be noted that the Microcap Index was up slightly for the quarter, less than our performance in the public holdings and our