Acacia Research Corporation (NASDAQ:ACTG) Q3 2019 Earnings Conference Call - Final Transcript

Nov 12, 2019 • 08:00 am ET


Acacia Research Corporation (NASDAQ:ACTG) Q3 2019 Earnings Conference Call - Final Transcript


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Good day. And welcome, ladies and gentlemen, to the Acacia Research 2019 Quarter Three Earnings Call. At this time, I would like to inform you that this conference is being recorded and that all participants are in a listen-only mode.

I would now like to turn the conference over the Rob Fink. Please go ahead, sir.

Rob Fink

Thank you, operator. Hosting the call today are Clifford Press, Chief Executive Officer; and Al Tobia, President and Chief Investment Officer.

Before beginning, I would like to remind you that the information provided during this call may contain forward-looking statements relating to its current expectations, estimates, forecasts and projections about future events that are forward-looking as defined in the Private Securities Litigation Reform Act of 1995.

These forward-looking statements generally relate to the Company's plans, objectives and expectations for future operations are based on the current estimates and projections, future results or trends. Actual results may differ materially from those projected as a result of certain risk factors and uncertainties. For a discussion of such risks and uncertainties, please see the risk factors described in Acacia's annual report on Form 10-K and quarterly reports on 10-Q that are filed with the SEC.

In addition, during the call, the Company will present non-GAAP financial measures. Please refer to its disclosures regarding the presentation of non-GAAP financial measures and other notes that were included in this morning's press release and 8-K that was filed with the SEC.

I would like to remind everyone that a press release disclosed in the Company's financial results was issued this morning before the market opened. This release maybe accessed on the Company's website at under the News and Events tab.

With all that said, I would now like to turn the call over to Al. Al, the call is yours.

Alfred Victor Tobia

Thank you, Rob, and good morning, everyone. This was another quarter of progress for Acacia, as we continue to advance our strategic transformation. Specifically during the third quarter, we established an executive leadership team and further rationalized our legacy investment portfolio. We now have the right team in place with a focused strategy to diversify our business and build our portfolio of intellectual property related absolute return assets.

In a dislocated and undervalued industry, Acacia is differentiated. We have $169 million in cash and marketable securities. We have $242 million in federal and state net operating loss carry-forwards that expire between 2026 and 2038. Additionally, we have $51 million in foreign tax credits. Most importantly, we have investments, technology, life science and transaction skillsets both in senior management and among the Board, which we will apply as we move forward.

We believe the IP investing landscape offers attractive potential returns for a well capitalized Company with a prudent asset allocation strategy. We are actively advancing on a number of opportunities both potential acquisitions and strategic partnerships. We are eager to provide updates on these opportunities as they develop and are confident in our strategy and focus.

I'd like now to