Latest news with #AcaciaResearch
Yahoo
5 days ago
- Business
- Yahoo
Acacia Research Corp (ACTG) Q2 2025 Earnings Call Highlights: Navigating Challenges with ...
Total Revenue: $51.2 million for Q2 2025. Adjusted EBITDA: $1.9 million for the company. Free Cash Flow: $47.9 million, reflecting cash collection from a settlement in the IP business. Diluted EPS Loss: $0.03 per share; adjusted loss of $0.06 per share. Book Value Per Share: $5.99; excluding non-controlling interests, $5.58. Energy Operations Revenue: $15.3 million, up from $14.2 million year-over-year. Manufacturing Operations Revenue: $29 million for the quarter. Industrial Operations Revenue: $6.6 million, compared to $6.3 million last year. Intellectual Property Revenue: $0.3 million, down from $5.3 million last year. G&A Expenses: $15.5 million, up from $10.1 million last year, with $5.1 million increase due to Deflecto. Operating Loss: $12.4 million, compared to $4.8 million last year. Energy Operations Adjusted EBITDA: $7 million. Manufacturing Operations Adjusted EBITDA: $1.3 million. Industrial Operations Adjusted EBITDA: $0.6 million. Net Loss: $3.3 million or $0.03 per share; adjusted net loss of $5.9 million or $0.06 per share. Cash Equivalents and Equity Securities: $338.2 million as of June 30, 2025. Total Indebtedness: $104.4 million, with $58 million at Benchmark and $46.4 million at Deflecto. Warning! GuruFocus has detected 5 Warning Signs with ACTG. Release Date: August 06, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Acacia Research Corp (NASDAQ:ACTG) announced a partnership with Unchained Capital to offer secured lending solutions backed by Bitcoin, which could provide attractive risk-adjusted returns. The company generated total revenue of $51.2 million in the second quarter, with significant contributions from its energy and manufacturing operations. Acacia's hedging strategy for its energy operations is performing well, with over 70% of oil and gas production hedged through 2027, mitigating downside pricing risks. The company has made progress in optimizing operations at its Deflecto business, improving accountability, reducing overhead costs, and streamlining product offerings. Acacia's industrial segment, Printronix, is performing ahead of plan, with a successful transition to higher-margin consumable products and improved free cash flow. Negative Points Acacia reported a GAAP operating loss of $12.4 million for the second quarter, primarily due to a decline in revenue from its intellectual property business. The company experienced demand headwinds in its Deflecto business due to global trade uncertainties and tariffs, impacting its transportation safety and consumer products segments. The Class A truck market remains weak, with new orders at their lowest level since 2010, affecting Deflecto's transportation safety business. Acacia's intellectual property operations saw a significant decrease in revenue compared to the previous year, highlighting the episodic nature of this business. The macroeconomic environment, including potential recessions and declining oil and natural gas prices, poses risks to Acacia's energy operations despite hedging strategies. Q & A Highlights Q: Can you share the expected interest rates for the Bitcoin commercial loans and how do you assess their risk compared to typical commercial loans? A: The loans are expected to yield returns in the low teens, exceeding 10% for Acacia. These loans are collateralized by Bitcoin at a 50% loan-to-value ratio, stored in a secure cold storage vault. The risk is considered minimal due to the ability to manage the loan-to-value ratio and liquidate Bitcoin if necessary. Additionally, Acacia plans to hedge against Bitcoin exposure to mitigate risks. Q: Regarding Deflecto, is there any indication of recovery in the Class A truck market, or do you expect the downturn to continue? A: The tariffs have significantly impacted the market, altering buying patterns. While uncertainty persists, there is optimism that purchasing cycles may return once clarity is achieved. Acacia is implementing strategies like price increases and cost optimization to navigate the situation. The aging fleet suggests potential for market recovery once uncertainties are resolved. Q: What are Acacia's plans for the Cherokee asset over the next one to two years? A: Acacia is evaluating partnerships with third-party capital to pursue a drilling strategy in Cherokee. The company is in the middle stages of planning and aims to capitalize on the acreage acquired with the PDPs from the revolution. Specific details on the number of wells are not disclosed at this time. Q: How does Acacia ensure the security of Bitcoin collateral in cold storage, and what measures are in place to protect against regulatory changes? A: The Bitcoin collateral is held in a cold storage unit managed by Unchained, with a multi-signature system requiring two of three key holders to access the Bitcoin. This setup provides high security. The UCC lien is embedded in the Bitcoin's coding, ensuring clear ownership. Acacia is confident in the security and regulatory compliance of this arrangement. Q: With 70% of the benchmark resolution business hedged, is there a risk of going cash flow negative if oil and natural gas prices decline? A: While nothing is impossible, it is highly improbable for the business to go cash flow negative due to the hedges in place. There is some unhedged exposure, but the hedges have performed as expected, providing confidence in maintaining positive cash flow despite price volatility. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
5 days ago
- Business
- Yahoo
Acacia Research Corp (ACTG) Q2 2025 Earnings Call Highlights: Navigating Challenges with ...
Total Revenue: $51.2 million for Q2 2025. Adjusted EBITDA: $1.9 million for the company. Free Cash Flow: $47.9 million, reflecting cash collection from a settlement in the IP business. Diluted EPS Loss: $0.03 per share; adjusted loss of $0.06 per share. Book Value Per Share: $5.99; excluding non-controlling interests, $5.58. Energy Operations Revenue: $15.3 million, up from $14.2 million year-over-year. Manufacturing Operations Revenue: $29 million for the quarter. Industrial Operations Revenue: $6.6 million, compared to $6.3 million last year. Intellectual Property Revenue: $0.3 million, down from $5.3 million last year. G&A Expenses: $15.5 million, up from $10.1 million last year, with $5.1 million increase due to Deflecto. Operating Loss: $12.4 million, compared to $4.8 million last year. Energy Operations Adjusted EBITDA: $7 million. Manufacturing Operations Adjusted EBITDA: $1.3 million. Industrial Operations Adjusted EBITDA: $0.6 million. Net Loss: $3.3 million or $0.03 per share; adjusted net loss of $5.9 million or $0.06 per share. Cash Equivalents and Equity Securities: $338.2 million as of June 30, 2025. Total Indebtedness: $104.4 million, with $58 million at Benchmark and $46.4 million at Deflecto. Warning! GuruFocus has detected 5 Warning Signs with ACTG. Release Date: August 06, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Acacia Research Corp (NASDAQ:ACTG) announced a partnership with Unchained Capital to offer secured lending solutions backed by Bitcoin, which could provide attractive risk-adjusted returns. The company generated total revenue of $51.2 million in the second quarter, with significant contributions from its energy and manufacturing operations. Acacia's hedging strategy for its energy operations is performing well, with over 70% of oil and gas production hedged through 2027, mitigating downside pricing risks. The company has made progress in optimizing operations at its Deflecto business, improving accountability, reducing overhead costs, and streamlining product offerings. Acacia's industrial segment, Printronix, is performing ahead of plan, with a successful transition to higher-margin consumable products and improved free cash flow. Negative Points Acacia reported a GAAP operating loss of $12.4 million for the second quarter, primarily due to a decline in revenue from its intellectual property business. The company experienced demand headwinds in its Deflecto business due to global trade uncertainties and tariffs, impacting its transportation safety and consumer products segments. The Class A truck market remains weak, with new orders at their lowest level since 2010, affecting Deflecto's transportation safety business. Acacia's intellectual property operations saw a significant decrease in revenue compared to the previous year, highlighting the episodic nature of this business. The macroeconomic environment, including potential recessions and declining oil and natural gas prices, poses risks to Acacia's energy operations despite hedging strategies. Q & A Highlights Q: Can you share the expected interest rates for the Bitcoin commercial loans and how do you assess their risk compared to typical commercial loans? A: The loans are expected to yield returns in the low teens, exceeding 10% for Acacia. These loans are collateralized by Bitcoin at a 50% loan-to-value ratio, stored in a secure cold storage vault. The risk is considered minimal due to the ability to manage the loan-to-value ratio and liquidate Bitcoin if necessary. Additionally, Acacia plans to hedge against Bitcoin exposure to mitigate risks. Q: Regarding Deflecto, is there any indication of recovery in the Class A truck market, or do you expect the downturn to continue? A: The tariffs have significantly impacted the market, altering buying patterns. While uncertainty persists, there is optimism that purchasing cycles may return once clarity is achieved. Acacia is implementing strategies like price increases and cost optimization to navigate the situation. The aging fleet suggests potential for market recovery once uncertainties are resolved. Q: What are Acacia's plans for the Cherokee asset over the next one to two years? A: Acacia is evaluating partnerships with third-party capital to pursue a drilling strategy in Cherokee. The company is in the middle stages of planning and aims to capitalize on the acreage acquired with the PDPs from the revolution. Specific details on the number of wells are not disclosed at this time. Q: How does Acacia ensure the security of Bitcoin collateral in cold storage, and what measures are in place to protect against regulatory changes? A: The Bitcoin collateral is held in a cold storage unit managed by Unchained, with a multi-signature system requiring two of three key holders to access the Bitcoin. This setup provides high security. The UCC lien is embedded in the Bitcoin's coding, ensuring clear ownership. Acacia is confident in the security and regulatory compliance of this arrangement. Q: With 70% of the benchmark resolution business hedged, is there a risk of going cash flow negative if oil and natural gas prices decline? A: While nothing is impossible, it is highly improbable for the business to go cash flow negative due to the hedges in place. There is some unhedged exposure, but the hedges have performed as expected, providing confidence in maintaining positive cash flow despite price volatility. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Globe and Mail
6 days ago
- Business
- Globe and Mail
Acacia Research (ACTG) Q2 Revenue Up 98%
Key Points GAAP revenue nearly doubled year over year to $51.2 million in Q2 2025, driven by newly acquired manufacturing operations, but missed the $55.0 million GAAP revenue estimate. Non-GAAP earnings per share came in at $(0.06), short of the $(0.05) non-GAAP consensus estimate; Adjusted EBITDA (non-GAAP) declined to $1.9 million from $4.1 million. Intellectual Property segment GAAP revenue dropped sharply to $0.3 million, highlighting continued volatility and reliance on one-time settlements. These 10 stocks could mint the next wave of millionaires › Acacia Research (NASDAQ:ACTG), an investment firm known for acquiring undervalued businesses across multiple sectors, released its second quarter results on August 6, 2025. The headline news from the period: GAAP revenue soared 98% from the prior-year quarter, reaching $51.2 million, primarily on the back of the Deflecto acquisition in its manufacturing business. However, The company missed analyst expectations, which had forecasted $55.0 million in GAAP revenue. Non-GAAP earnings per share (EPS) landed at $(0.06), compared with the anticipated $(0.05). Overall, the quarter reflected robust top-line growth from acquisitions. Metric Q2 2025 Q2 2025 Estimate Q2 2024 Y/Y Change EPS (Non-GAAP) $(0.06) $(0.05) $(0.01) (500.0%) EPS (GAAP) $(0.03) $(0.08) N/A Revenue (GAAP) $51.2 million $55.0 million $25.8 million 98.4% Total Company Adjusted EBITDA $1.9 million $4.1 million (53.7%) Free Cash Flow (Non-GAAP) $47.9 million N/A Source: Analyst estimates for the quarter provided by FactSet. Business Overview and Strategic Focus Acacia Research operates as an investment platform that acquires, manages, and seeks to unlock value in businesses across manufacturing, industrial, energy, and intellectual property. It searches for underappreciated and complex assets, with a specific emphasis on free cash flow potential and operational improvement. In recent quarters, the company has concentrated on expanding by acquisition, particularly with the addition of Deflecto to create a new manufacturing segment. Key success factors for Acacia Research include selecting the right acquisition targets, integrating them efficiently, and achieving steady cash flow. The company also leverages its partnership with Starboard Value to enhance sourcing and execution of strategic transactions. Quarter Highlights: Financial and Operational Performance The most prominent story this period was headline revenue growth, which nearly doubled year over year, with GAAP revenue increasing 98% to $51.2 million from $25.8 million in Q2 2024. This jump was primarily driven by the Manufacturing Operations segment, thanks to the second full quarter of Deflecto's contribution, generating $29.0 million in segment revenue. Energy Operations (Benchmark) delivered $15.3 million in GAAP revenue, up modestly from $14.2 million in Q2 2024, and Industrial Operations (Printronix) posted $6.6 million in GAAP revenue, up slightly from $6.3 million for Q2 2024. However, the IP segment, focused on licensing technology and patent portfolios, was a weak spot. IP revenue (GAAP) fell sharply to $0.3 million from $5.3 million in Q2 2024, reflecting a lack of new settlements or licensing income in the quarter. This high volatility is typical in IP licensing businesses, which often depend on unpredictable legal settlements. The first half of the year had been boosted by a large one-time intellectual property (IP) settlement, but the second quarter saw minimal activity. In contrast, Energy and industrial divisions showed modest revenue growth, with Energy Operations Adjusted EBITDA slightly declining and Industrial Operations Adjusted EBITDA increasing. The new manufacturing segment is now the largest by revenue, but its margin profile is slim, as shown by $1.3 million in adjusted EBITDA on $29.0 million in revenue, around a 4.4% margin. Despite strong revenue growth, profitability metrics deteriorated. Total company adjusted EBITDA (non-GAAP) was $1.9 million, a drop from $4.1 million in the prior-year period. Operated segment adjusted EBITDA (non-GAAP, excluding parent-level costs) was $6.8 million, down from $8.8 million for Q2 2024. Notably, Sales and marketing expenses for industrial and manufacturing operations increased to $3.4 million. Cash, cash equivalents, and equity securities totaled $338.2 million at period-end, up from $297.0 million at December 31, 2024, providing flexibility for future acquisitions or shareholder programs. Free cash flow (non-GAAP) was $47.9 million, aided mostly by IP settlement receipts booked earlier in the year. Total consolidated debt was $104.4 million as of June 30, 2025, with all borrowings at the operating subsidiary level and none at the parent company. Book value per share stood at $5.99, with 96.4 million shares outstanding. Segment and Product Updates, One-Time Items, and Dividend The company's diverse portfolio includes manufacturing products (Deflecto makes plastic-based goods for air distribution, transportation, and office use), industrial equipment (Printronix specializes in printing solutions), energy assets (Benchmark manages oil, gas, and natural gas liquids), and intellectual property (Acacia Research Group pursues patent-related revenue). Energy operations had an Adjusted EBITDA of $6.95 million on $15.32 million in revenue. -- while IP's contribution has proven highly variable and manufacturing's headline revenue has not yet delivered expected profit scales. Looking deeper at trends, the energy business posted stable results, reporting flat adjusted EBITDA (non-GAAP) on a modest increase in revenue. Industrial operations maintained small but positive margins. The manufacturing unit is in its initial integration phase, with management focusing on cost controls, footprint optimization, and streamlined product offerings. Despite capturing the most revenue, Deflecto's margins were slim due to ramp-up costs and higher G&A. though investors should note that first quarter results included a sizeable legal settlement in the Intellectual Property segment, distorting free cash flow and headline earnings for the current year. The company also announced a new partnership with Unchained Capital and Build Asset Management to pursue a Bitcoin-backed commercial lending product. This represents a move outside its traditional domains, and the company did not specify the scale or risk profile of the initiative in its filing. Acacia Research does not currently pay a dividend. Outlook and What to Watch Ahead Management did not provide explicit financial guidance for the remainder of fiscal 2025 or for its key segments. The leadership team reaffirmed its acquisition-driven growth strategy and noted that its strong cash position enables continued pursuit of new investments, but stopped short of giving concrete forecasts. For observers, several issues warrant attention in coming quarters. Key areas include the sustainability of revenue mix, integration of newly acquired businesses (especially Deflecto), margin recovery efforts, and the ability to generate recurring cash flow beyond large, infrequent IP settlements. Volatility in the IP segment and the still-maturing manufacturing business will likely be central drivers of earnings variability for the foreseeable future. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. 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Associated Press
6 days ago
- Business
- Associated Press
Acacia Research Corporation Reports Second Quarter 2025 Financial Results
NEW YORK--(BUSINESS WIRE)--Aug 6, 2025-- Acacia Research Corporation (Nasdaq: ACTG ) (' Acacia ' or the ' Company '), which acquires and operates businesses across the industrial, energy and technology sectors, today reported financial results for the three and six months ended June 30, 2025. The Company also posted its second quarter 2025 earnings presentation on its website at under Events & Presentations. Martin ('MJ') D. McNulty, Jr., Chief Executive Officer, stated, 'While we have been presented with a unique operating environment in both the U.S. and global economies, our diversified set of businesses and risk management approach has enabled us to manage and protect against some of these challenges. Our strategy remains focused on acquiring fundamentally strong businesses where our management processes can drive incremental value. In this economic environment, our teams have been highly focused on improving efficiencies, strengthening market positioning, and upgrading operational capabilities so that we are best positioned when markets normalize. In the second quarter, we continued to execute our strategy of building businesses with stable cash flow generation and scalability. We believe the opportunities we are identifying within our existing businesses and our strong balance sheet will ensure Acacia continues to deliver long-term shareholder value. As of the end of the second quarter, cash, cash equivalents, and equity securities was approximately $338.2 million, or $3.51 per share. Our strong cash position and balance sheet provides us with substantial dry powder to grow our businesses and positions us to pursue accretive acquisition opportunities that become available. Finally, we are excited to announce a partnership with Unchained Capital and Build Asset Management for a Bitcoin-backed commercial loan strategy. More information about this partnership can be found in a press release issued earlier today and posted to our website.' Second Quarter 2025 Highlights Revenue The following table provides a breakdown of the Company's total revenue for the three and six months ended June 30, 2025 and June 30, 2024. For the purposes of financial reporting, Acacia's operations are broken out as follows: Energy Operations (Benchmark), Industrial Operations (Printronix), Manufacturing Operations (Deflecto), and Intellectual Property Operations (Acacia Research Group). Adjusted EBITDA The following table provides a reconciliation of consolidated Net Income (Loss), the most directly comparable GAAP measure, to Total Company Adjusted EBITDA for the three and six months ended June 30, 2025 and June 30, 2024. The following table provides the Adjusted EBITDA for each of the Company's operating segments for the three and six months ended June 30, 2025 and June 30, 2024. Adjusted Net Income (Loss) and Adjusted Diluted EPS The following table provides a reconciliation of Net Income (Loss), the most directly comparable GAAP measure, to Adjusted Net Income (Loss) and Adjusted Diluted EPS for the three months ended June 30, 2025 and June 30, 2024. Free Cash Flow 4 The following table provides a reconciliation of Free Cash Flow (FCF) for the three and six months ended June 30, 2025. Balance Sheet and Capital Structure Book Value as of June 30, 2025 At June 30, 2025, Acacia's book value (which includes noncontrolling interests) was $577.5 million and there were 96.4 million shares of common stock outstanding, for a book value per share of $5.99. This value is impacted by one-time expenses and other adjustments detailed in the above reconciliation from GAAP Net Income (Loss) to Adjusted Net Income (Loss). Investor Conference Call The Company will host a conference call today, August 6, 2025 at 8:00 a.m. Eastern Time (5:00 a.m. Pacific Time). To access the live call, please dial 877-545-0523 (U.S. and Canada) or 973-528-0016 (international) and if requested, reference the access code '395103.' The conference call will also be simultaneously webcast at and on the investor relations section of the Company's website at under Events & Presentations. Following the conclusion of the live call, a replay of the webcast will be available on the Company's website for at least 30 days. About the Company Acacia (Nasdaq: ACTG ) is a publicly traded company that is focused on acquiring and operating attractive businesses across the mature technology, energy and industrial/manufacturing sectors where it believes it can leverage its expertise, significant capital base, and deep industry relationships to drive value. Acacia evaluates opportunities based on the attractiveness of the underlying cash flows, without regard to a specific investment horizon. Acacia operates its businesses based on three key principles of people, process and performance and has built a management team with demonstrated expertise in research, transactions and execution, and operations and management. Additional information about Acacia and its subsidiaries is available at Safe Harbor Statement This news release contains forward-looking statements within the meaning of the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon the Company's current expectations and speak only as of the date hereof. All statements other than statements of historical fact are forward-looking statements and include statements related to estimates and projections with respect to, among other things, the Company's anticipated financial condition, operating performance, the value of the Company's assets, general economic and market conditions and other future circumstances and events. This news release attempts to identify forward-looking statements by using words such as 'anticipate,' 'believe,' 'continue,' 'could,' 'estimate,' 'expect,' 'forecast,' 'future,' 'guidance,' 'intend,' 'may,' 'outlook,' 'plan,' 'potential,' 'predict,' 'project,' 'seek,' 'should,' 'target' and 'will,' and similar words and expressions; however, the absence of these words does not mean that the statements are not forward-looking. While the Company believes its assumptions concerning future events are reasonable, a number of factors could cause actual results to differ materially and adversely from those expressed or implied in any forward-looking statements, including, but not limited to: the Company's ability to successfully identify, diligence, complete, and integrate strategic acquisitions of businesses, divisions, and/or assets, the performance of the Company's businesses, divisions, and/or assets, disruptions or uncertainty caused by an ability to retain or changes to the employees or management teams of the Company's businesses, changes to the Company's relationship and arrangements with Starboard Value LP, any inability of the Company's operating businesses to execute on their business and, with respect to Benchmark, hedging strategy, risks related to price and other fluctuations in the oil and gas market, inflationary pressures, supply chain disruptions or labor shortages, the impact of tariffs and trade policy, non-performance by third parties of contractual or legal obligations, changes in the Company's credit ratings or the credit ratings of the Company's businesses, security threats, including cybersecurity threats and disruptions to the Company's business and operations from breaches of information technology systems, or breaches of information technology systems, facilities and infrastructure of third parties with which the Company transacts business, oil or natural gas production becoming uneconomic, causing write downs or adversely affecting Benchmark's ability to borrow, Benchmark's ability to replace reserves and efficiently develop current reserves, risks, operational hazards, unforeseen interruptions and other difficulties involved in the production of oil and natural gas, the impact of any seismic events, environmental liability risk, regulatory changes related to the oil and gas industry, the ability to successfully develop licensing programs and attract new business, changes in demand for current and future intellectual property rights, legislative, regulatory and competitive developments addressing licensing and enforcement of patents and/or intellectual property in general, the decrease in demand for Printronix' products, changes in safety, health, environmental, tax and other regulations, requirements or initiatives, hazards such as weather conditions, a health pandemic (similar to COVID-19), acts of war or terrorist acts and the government or military response thereto, general economic conditions, and the success of the Company's investments. For further discussions of risks and uncertainties, you should refer to the Company's filings with the Securities and Exchange Commission, including the 'Risk Factors' section of the Company's most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. In addition, actual results may differ materially as a result of additional risks and uncertainties of which the Company is currently unaware or which the Company does not currently view as material. Except as otherwise required by applicable law, the Company undertakes no obligation to revise or update publicly any forward-looking statements for any reason. This earnings release includes Adjusted EBITDA on a consolidated basis and for each of the Company's segments. Total Company Adjusted EBITDA, Operated Segment Adjusted EBITDA and Adjusted EBITDA and Free Cash Flow (FCF) for each of the Company's segments are supplemental non-GAAP financial measures used by management and external users of the Company's consolidated financial statements. This earnings release also includes the Company's Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share (EPS), which are non-GAAP financial measures. GAAP refers to generally accepted accounting principles in the United States. A non-GAAP financial measure is a numerical measure of historical or future performance, financial position or cash flow that includes or excludes amounts that are excluded or included, respectively, in the most directly comparable measure calculated and presented in accordance with GAAP in the Company's financial statements. Total Company Adjusted EBITDA is defined as net income / (loss) before net income / (loss) attributable to noncontrolling interests, income tax (benefit) / expense, interest expense, interest income, and other expense, net and loss / (gain) on foreign currency exchange, net realized and unrealized (gain) / loss on derivatives, net realized and unrealized loss / (gain) on investments, non-recurring legacy legal expenses, depreciation, depletion and amortization, stock-based compensation, realized hedge gain / (loss), transaction-related costs, and costs related to the legacy items. Operated Segment Adjusted EBITDA is the aggregate of Energy Operations Adjusted EBITDA, Manufacturing Operations Adjusted EBITDA, Industrial Operations Adjusted EBITDA, and Intellectual Property Operations Adjusted EBITDA. See below for the definition of each of those measures. The Company is providing Total Company Adjusted EBITDA and Operated Segment Adjusted EBITDA, non-GAAP financial measures, because management believes these metrics provide investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance. These measures are not intended to replace the presentation of financial results in accordance with GAAP and may be different from or otherwise inconsistent with similar non-GAAP financial measures used by other companies. The presentation of these non-GAAP financial measures supplements other metrics the Company uses to internally evaluate its subsidiary businesses and facilitate the comparison of past and present operating performance. These measures should not be considered in isolation or as a substitute for measures calculated and presented in accordance with GAAP. Energy Operations Energy Operations Adjusted EBITDA is defined as operating income / (loss) for Acacia's Energy Operations before depreciation, depletion and amortization expense and transaction-related costs, and including realized hedge gain / (loss). The Company is providing its Energy Operations Adjusted EBITDA, a non-GAAP financial measure, because the metric provides investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance. Industrial Operations Industrial Operations Adjusted EBITDA is defined as operating income / (loss) for Acacia's Industrial Operations before amortization of acquired intangibles and depreciation and amortization expense. The Company is providing its Industrial Operations Adjusted EBITDA, a non-GAAP financial measure, because the metric provides investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance. Intellectual Property Operations Intellectual Property Operations Adjusted EBITDA is defined as operating income / (loss) for Acacia's Intellectual Property Operations before patent amortization, depreciation expense and stock-based compensation. The Company is providing Intellectual Property Operations Adjusted EBITDA, a non-GAAP financial measure, because the metric provides investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance. Manufacturing Operations Manufacturing Operations Adjusted EBITDA is defined as operating income / loss for Acacia's Manufacturing Operations before depreciation and amortization expense, severance, and transaction-related costs. The Company is providing its Manufacturing Operations Adjusted EBITDA, a non-GAAP financial measure, because the metric provides investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance. Parent Costs are defined as operating income / (loss) attributable to Parent before depreciation and amortization expense, stock-based compensation, transaction-related costs, and costs related to certain legacy matters attributable to the Parent organization. The Company is providing Parent Costs, a non-GAAP financial measure, because it believes it gives investors a clear picture of normalized Parent-level expenses. Free Cash Flow is defined as net cash provided by (used in) operating activities, less net purchases of property and equipment, oil and gas properties, and patent acquisitions ('Capital Expenditures'). The Company is providing Free Cash Flow, a non-GAAP financial measure, because it believes free cash flow gives investors a good sense of how much cash flows are available to be used for de-levering, making acquisitions, repurchasing shares or similar uses of cash. Adjusted Net Income (Loss) Adjusted Net Income (Loss) is defined as Acacia's GAAP Net Income (Loss) excluding costs related to certain legacy matters, stock-based compensation, transaction-related costs, amortization of acquired intangibles, any unrealized (gain) / loss on securities, any unrealized (gain) / loss on hedges, and any (gain) / loss on non-cash derivatives and taking into account the tax effect(s) of those adjustments. The Company is providing Adjusted Net Income (Loss), a non-GAAP financial measure, because the metric provides investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance. Adjusted Diluted Earnings Per Share (EPS) Adjusted Diluted EPS is defined as Adjusted Net Income (Loss) divided by the Company's weighted average diluted share count as of the relative period end date. The Company is providing its Adjusted Diluted EPS, a non-GAAP financial measure, because the metric provides investors with useful supplemental information in comparing the operating results across reporting periods by excluding items that are not considered indicative of core operating performance. The following tables reconcile Operating Income (Loss), the most directly comparable GAAP financial measure, to Adjusted EBITDA for each of the Company's operating segments and for Parent Costs for the three and six months ended June 30, 2025 and June 30, 2024. 1 Adjusted Net Income (Loss), Adjusted Diluted Earnings Per Share (EPS), Total Company Adjusted EBITDA and Operated Segment Adjusted EBITDA are non-GAAP financial measures. See below for reconciliations of Adjusted Net Income (Loss), Adjusted Diluted EPS, and Total Company Adjusted EBITDA to their most directly comparable GAAP financial measure. For the definition of these measures and a reconciliation of the components of Operated Segment Adjusted EBITDA to their most directly comparable GAAP financial measures, see the accompanying supplemental information section. 2 Energy Operations Adjusted EBITDA, Industrial Operations Adjusted EBITDA, Manufacturing Operations Adjusted EBITDA, Intellectual Property Operations Adjusted EBITDA, and Parent Costs are non-GAAP financial measures. For the definitions of these measures and reconciliations of these measures to the most directly comparable GAAP financial measures, see the accompanying supplemental information section. 3 Legacy Matter Costs for the six months ended June 30, 2025 includes $250,000 related to a one-time legacy tax matter at Printronix that has been settled, which amount is included within Other Expense, Net in Acacia's condensed consolidated statement of operations. 4 Free Cash Flow (FCF) is a non-GAAP financial measure. For a definition of this measure, see the accompanying supplemental information section. View source version on CONTACT: Investor Contact: Gagnier Communications [email protected] KEYWORD: UNITED STATES NORTH AMERICA NEW YORK INDUSTRY KEYWORD: ALTERNATIVE ENERGY OTHER PROFESSIONAL SERVICES DATA MANAGEMENT ENERGY MANUFACTURING TECHNOLOGY FINANCE BUSINESS APPS/APPLICATIONS PROFESSIONAL SERVICES ASSET MANAGEMENT OTHER MANUFACTURING OTHER TECHNOLOGY SOFTWARE OTHER ENERGY ENGINEERING SOURCE: Acacia Research Corporation Copyright Business Wire 2025. PUB: 08/06/2025 07:15 AM/DISC: 08/06/2025 07:17 AM
Yahoo
24-06-2025
- Business
- Yahoo
Acacia Research Corporation Announces Appointment of Michael Zambito as Chief Financial Officer
Zambito Brings More Than 30 Years of Finance, Accounting, M&A and Relevant Industry Expertise NEW YORK, June 24, 2025--(BUSINESS WIRE)--Acacia Research Corporation (Nasdaq: ACTG) ("Acacia" or the "Company"), which acquires and operates businesses across the industrial, energy and technology sectors, today announced the appointment of Michael Zambito as Chief Financial Officer, effective June 24, 2025. Kirsten Hoover, Acacia's current Interim Chief Financial Officer, will continue to serve as Acacia's Controller and remains a key member of Acacia's finance team. Prior to joining Acacia, Mr. Zambito spent the past 30 years at Ernst & Young, a multinational professional services firm, and a global leader in assurance, tax, transactions, and consulting services. Most recently, he spent over 23 years, including the last 17 as a Partner, in Ernst & Young's EY-Parthenon (formerly Strategy and Transactions) practice, a market-leading strategy, transactions, and corporate finance provider. Prior to this, he spent seven years in Ernst & Young's NY audit practice, as staff through manager. Mr. Zambito received his MBA from Columbia Business School and holds a Bachelor of Science degree in Business Administration with a major in Accounting from the University of Richmond. Martin ("MJ") D. McNulty, Jr., Chief Executive Officer, stated, "I am very excited to announce Mike's appointment as CFO and his addition to Acacia's senior management team. I, and certain members of our team, have known, and worked with, Mike for more than fifteen years and I'm confident he will be a seamless and integral member of our senior team. Mike is a veteran leader and financial professional with significant industry expertise including in the industries in which we strive to grow Acacia. Mike's talents closely align with our value-oriented approach and focus on acquiring and operating businesses where we can tap into our deep industry relationships, significant capital base, and transaction expertise to materially improve performance, creating long-term value for shareholders and partners. I would also like to express my deep and sincere gratitude to Kirsten for her instrumental efforts for the past two years as Interim Chief Financial Officer. Kirsten has worked tirelessly in ensuring Acacia's success, and I am confident that she will continue to excel as a key member of Acacia's finance team." Mike Zambito, Chief Financial Officer, stated, "I'm thrilled to join Acacia's highly skilled and experienced management team. The new management team at Acacia has a demonstrated track record of effectively leveraging its significant capital resources to take advantage of unique situations with multiple levers for generating shareholder value. I look forward to working with MJ, Kirsten and the entire Acacia team to support the Company in rapidly scaling its growing platforms organically and through M&A." About the CompanyAcacia (Nasdaq: ACTG) is a publicly traded company that is focused on acquiring and operating attractive businesses across the industrial, energy and technology sectors where it believes it can leverage its expertise, significant capital base, and deep industry relationships to drive value. Acacia evaluates opportunities based on the attractiveness of the underlying cash flows, without regard to a specific investment horizon. Acacia operates its businesses based on three key principles of people, process and performance and has built a management team with demonstrated expertise in research, transactions and execution, and operations and management. Additional information about Acacia and its subsidiaries is available at View source version on Contacts Investor Contact: Gagnier Communicationsir@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
