Acacia Research Corporation (ACTG) 2024 Q1 法說會逐字稿

Good day, and welcome to the Acacia Research first-quarter 2024 financial results conference call. (Operator Instructions) I would now like to turn the call over to Rob Fink. Please go ahead.

大家好，歡迎參加 Acacia Research 2024 年第一季財務業績電話會議。(接線員指示) 現在我想把電話交給 Rob Fink。請開始。

Thank you, operator. Thank you, everyone, for joining us today. Hosting the call today are MJ McNulty, Chief Executive Officer; and Kirsten Hoover, Interim Chief Financial Officer. Before beginning, I'd like to remind you that the information provided during this call may contain forward-looking statements relating to current expectations, estimates, forecasts, and projections about future events that are forward-looking as defined in the Private Securities Litigation Reform Act of 1995.

謝謝，接線員。謝謝各位今天加入我們。今天主持電話會議的是執行長 MJ McNulty，以及臨時財務長 Kirsten Hoover。在開始之前，我想提醒各位，本次電話會議中提供的資訊可能包含前瞻性陳述，涉及對未來事件的當前預期、估計、預測與推估；此類陳述依 1995 年《私人證券訴訟改革法》之定義屬於前瞻性陳述。

These forward-looking statements generally relate to the company's plans, objectives, and expectations for future operation and 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 risks and uncertainties. For a discussion of such risks and uncertainties, please see the risk factors as described in Acacia's annual report on Form 10-K and quarterly report on Form 10-Q, both of which are filed with the SEC.

這些前瞻性陳述通常與公司未來營運的計畫、目標與預期相關，並以目前的估計與推算、未來結果或趨勢為基礎。由於若干風險與不確定性，實際結果可能與預測存在重大差異。關於此類風險與不確定性的討論，請參閱 Acacia 向美國證券交易委員會（SEC）提交之 Form 10-K 年度報告與 Form 10-Q 季度報告中所述的風險因素。

I would also like to remind everyone that a press release disclosing the financial was issued this afternoon just after the close of market. The release may be accessed on the company's website under the Press Release section of the Investor Relations tab at acaciaresearch.com.

我也想提醒各位，披露財務資訊的新聞稿已於今天下午收盤後不久發布。該新聞稿可於公司網站 acaciaresearch.com 的 Investor Relations（投資人關係）分頁下之 Press Release（新聞稿）區域查閱。

With all that said, I'd now like to turn the call over to MJ. MJ, the call is yours.

在此之後，我現在把電話交給 MJ。MJ，交給你了。

Thanks very much, Rob. In the short time since our last call, we've continued to execute on our capital allocation strategy. We've realized gains from our IP monetization business and cash flows from Printronix and have deployed capital into our new oil and gas business. Our focus continues to be two-fold: first, growing cash flow and earnings from our current businesses; and second, continuing to evaluate opportunities to acquire new businesses into our platform.

非常感謝你，Rob。自上次電話會議以來的短時間內，我們持續執行資本配置策略。我們已自 IP 變現業務實現收益，並自 Printronix 取得現金流，同時已將資本投入我們新的油氣業務。我們的重點仍有兩個面向：第一，提升現有業務的現金流與獲利；第二，持續評估將新業務併入我們平台的收購機會。

Our team has been busy identifying opportunistic situations where our research execution and operating partners can drive attractive earnings and book value per share growth. As it relates to the specifics, in terms of sources of the capital, our IP monetization business generated $13.6 million in growth settlements and patent license agreements in the first quarter. These agreements further bolster our position to pursue additional licensing agreements and settlements and our teams advancing discussions with other potential licensees.

我們的團隊一直忙於辨識具機會性的情境，在這些情境中，我們的研究執行能力與營運合作夥伴可推動具吸引力的獲利與每股帳面價值成長。就資金來源的具體情況而言，我們的 IP 變現業務在第一季透過和解增長款與專利授權協議產生了 1,360 萬美元。這些協議進一步鞏固我們追求更多授權協議與和解的地位，我們的團隊也正與其他潛在被授權方推進討論。

The WiFi 6 patent portfolio continues to represent a lucrative opportunity for periodic cash rents, and we believe there's significant incremental value in these patents. Additionally, we continue to evaluate potential additional capital investment into this business to acquire new patent portfolios when we believe there are attractive risk-reward opportunities.

WiFi 6 專利組合仍代表可定期取得現金租金的豐厚機會，我們相信這些專利具有顯著的額外增量價值。此外，當我們認為存在具吸引力的風險報酬機會時，我們也持續評估對該業務追加資本投資，以收購新的專利組合。

Also, as you will recall, Acacia acquired Printronix operating business in October of 2021. At the time we acquired the business, we believed it represented an attractive price relative to the cash flow able to be generated and recognize there would be some level of operational and strategic restructuring required.

另外，如各位所記得，Acacia 於 2021 年 10 月收購了 Printronix 的營運業務。在收購當時，我們認為相對於可產生的現金流而言，該業務的收購價格具吸引力，並且也認知到需要進行一定程度的營運與策略重整。

Beginning in early 2023, this team began the detailed work of putting the restructuring in motion by replacing the Printronix management team and bringing an operating adviser into the business to formulate and execute on continuous improvement and efficiency initiatives, including significant cost rationalization.

自 2023 年初起，團隊開始著手推動重整的細部工作，包括更換 Printronix 管理團隊，並引入營運顧問進入業務，制定並執行持續改善與效率提升措施，其中包含大幅的成本合理化。

These initiatives are bearing fruit. We've now transitioned Printronix from consuming approximately $3.8 million in cash in the LTM period ended March 31, 2023, to generating approximately $6.8 million in cash during the LTM period ending March 31, 2024.

這些措施正在開花結果。我們已將 Printronix 從截至 2023 年 3 月 31 日之過去十二個月（LTM）期間約消耗 380 萬美元現金，轉變為截至 2024 年 3 月 31 日之過去十二個月期間約產生 680 萬美元現金。

We further defined and implemented the business' value proposition and go-to-market strategy for both printers and our high-margin consumables business. We're pleased with the progress of Printronix and believe its dual hardware and consumables business model, combined with its streamlined operating structure, represent a nice source of cash flow for Acacia.

我們也進一步明確並落實該業務的價值主張與市場進入策略，涵蓋印表機以及我們高毛利的耗材業務。我們對 Printronix 的進展感到滿意，並相信其硬體與耗材的雙重商業模式，結合精簡的營運架構，將為 Acacia 帶來良好的現金流來源。

Turning to our capital allocation initiatives. Early in the second quarter, Benchmark, our oil and gas business unit closed its first significant acquisition, purchasing an attractive group of assets in Texas and Oklahoma. With the closing of the new acquisition now behind us, our experienced team at Benchmark has begun implementing its operational improvement plan. As we've stated previously, operational improvements are a meaningful part of our strategy.

接著談我們的資本配置措施。在第二季初，我們的油氣事業單位 Benchmark 完成其第一筆重大收購，買入位於德州與奧克拉荷馬州的一組具吸引力資產。隨著新收購案完成交割，我們在 Benchmark 的資深團隊已開始落實其營運改善計畫。如我們先前所述，營運改善是我們策略中相當重要的一環。

Our goal is to acquire mature, long-lived assets, and deploy various field enhancements, including artificial lift optimization, a more active well maintenance program, and reopening previously closed wells. Benchmark's core strategy of improving the production and efficiency of its assets to maximize cash flow.

我們的目標是收購成熟、壽命長的資產，並導入各種油田增效措施，包括人工舉升最佳化、更積極的井口維護計畫，以及重新啟用先前關閉的油井。Benchmark 的核心策略是提升資產的產量與效率，以最大化現金流。

As a reminder, this acquisition significantly expands the Benchmark portfolio adding approximately 140,000 net acres to approximately 470 operated producing wells in the Western Anadarko Basin throughout the Texas Panhandle and Western Oklahoma, including meaningful exposure to the emerging Cherokee development play via both operated acreage and non-operated arrangements with best-in-class operators.

提醒各位，本次收購大幅擴充 Benchmark 的資產組合，於德州狹長地帶（Texas Panhandle）與奧克拉荷馬州西部的西阿納達科盆地（Western Anadarko Basin）新增約 14 萬淨英畝，並增加至約 470 口由其營運的生產井；同時，透過自營礦權與與一流營運商的非自營安排，對新興的 Cherokee 開發區塊取得具意義的曝險。

As we mentioned before, we like these assets because of their liquids-rich nature, being predominantly oil-based, with a production base of approximately 6,000 barrels of oil equivalent per day, exhibiting a low decline profile. Kirsten will discuss the financial results for Benchmark specific to the first quarter before we close the transaction.

如我們先前提到，我們喜歡這些資產，因其液體含量高、以原油為主，日產量基礎約為 6,000 桶油當量，且遞減率較低。Kirsten 將在我們完成交易交割前，說明 Benchmark 第一季的財務結果。

And I would highlight that in our next earnings, you should begin to see the significant benefits we expect from the platform in terms of revenue and free cash flow generation. We expect the consolidated Benchmark entity to generate approximately $50 million in asset-level cash flow over the next 12 months at current strip pricing. As a reminder, Acacia owns 73.5% of Benchmark Energy pro forma for the transaction.

我也要強調，在我們下一次財報中，各位應該會開始看到我們預期該平台在營收與自由現金流產生方面帶來的顯著效益。以目前的期貨曲線（strip）價格計算，我們預期合併後的 Benchmark 實體在未來 12 個月可於資產層級產生約 5,000 萬美元現金流。提醒各位，按本次交易的備考（pro forma）基礎，Acacia 持有 Benchmark Energy 73.5% 的股權。

Consistent with our risk management approach upon closing, Benchmark implemented hedges for over 70% of its operated oil and gas production for the next three years at attractive price levels, protecting a significant portion of the returns we've underwrote when we signed a deal in February.

依我們的風險管理方法，在交割完成後，Benchmark 針對未來三年其自營油氣產量的逾 70% 建立避險，且鎖定在具吸引力的價格水準，從而保障我們在 2 月簽署交易時所承作（underwrite）的相當部分報酬。

With Benchmark's additional scale, we've been able to bring on additional hedging counterparties that not only help us achieve the best pricing, but also allow us to diversify risk. Taking this acquisition into account, Acacia has approximately $400 million in capital to deploy into new acquisitions.

隨著 Benchmark 規模擴大，我們得以新增避險交易對手，不僅有助於取得最佳定價，也讓我們能分散風險。考量本次收購後，Acacia 約有 4 億美元資本可用於部署至新的收購案。

We believe the oil and gas business represents an attractive complement to our acquisition initiatives in industrials, technology, and healthcare, where we also continue to evaluate operating businesses to add to our portfolio.

我們認為油氣業務是對我們在工業、科技與醫療保健領域收購策略的有利補充；在這些領域，我們也持續評估可納入投資組合的營運型企業。

Overall, the M&A environment is encouraging for the Acacia strategy, and we're seeing a strong pipeline of both public and private opportunities that fit well within our desired characteristics.

整體而言，併購環境對 Acacia 的策略而言令人鼓舞；我們看到一條強勁的案源管線，涵蓋上市與非上市機會，且都非常符合我們所期望的特性。

While Acacia is less reliant on leverage for returns in our financial buyer counterparts, the lending environment appears to be opening up, and we have seen traditional banks starting to reemerge after being on the sidelines for the last year. This will allow us to be opportunistic in utilizing leverage as we evaluate total cost of capital in each acquisition we make.

雖然相較於我們的金融買方同業，Acacia 對於透過槓桿來提升報酬的依賴程度較低，但放貸環境似乎正在轉為寬鬆，我們也看到傳統銀行在過去一年多處於觀望後，開始重新回到市場。這將使我們在評估每一筆收購的整體資本成本時，能夠把握機會、靈活運用槓桿。

In the public markets, while valuations generally remain elevated, we're searching for and finding opportunities that are not well understood or where we believe our ownership can unlock significantly more value. We're continuing to see more situations where the market is creating attractive opportunities for buyers willing to do the fundamental work to understand the situation and find value.

在公開市場方面，雖然估值整體仍然偏高，但我們正在尋找並且也確實找到一些機會：這些機會要麼未被市場充分理解，要麼我們相信透過我們的持有與經營能夠釋放顯著更多的價值。我們持續看到更多情況是，市場正在為願意投入基本面研究、理解情勢並挖掘價值的買方創造具吸引力的機會。

As a result of these activities this quarter, our book value per share at March 31, 2024, was $5.89 per share compared to $5.90 per share at December 31, 2023. Excluding an additional accrual of $6.2 million related to the AIP Matter, which is discussed in greater detail in our 10-Q, our adjusted book value per share on March 31, 2024, would have been $5.95 a share.

由於本季這些活動的影響，截至 2024 年 3 月 31 日，我們每股帳面價值為 5.89 美元，相較於 2023 年 12 月 31 日的每股 5.90 美元。若排除與 AIP 事項相關、額外提列的 620 萬美元應計費用（我們在 10-Q 中有更詳細的討論），則截至 2024 年 3 月 31 日，我們調整後的每股帳面價值將為 5.95 美元。

As a reminder, the AIP Matter relates to an ongoing legal matter involving a Profits Interest Plan adopted by prior members of management and the Board in 2017. The Profits Interest Plan granted a profit interest in Veritone 10% warrants certain members of management and the Board as compensation for services rendered. Importantly, those members of management and the Board separated from Acacia in 2018 and 2019, and the Veritone 10% warrants were exercised in 2020 and 2021.

提醒一下，AIP 事項係指一項持續進行中的法律案件，涉及前任管理團隊與董事會成員於 2017 年採行的「利益分配計畫」（Profits Interest Plan）。該利益分配計畫以提供 Veritone 10% 認股權證的利益分配方式，授予特定管理團隊與董事會成員，作為其提供服務的報酬。重要的是，這些管理團隊與董事會成員已於 2018 年與 2019 年自 Acacia 離任，而 Veritone 10% 認股權證已於 2020 年與 2021 年完成行使。

As we mentioned before, book value per share is a metric we follow closely and is the primary metric on which our team's compensation is based. We believe this creates very close alignment with our shareholders.

如同我們先前提到的，每股帳面價值是我們密切追蹤的一項指標，也是我們團隊薪酬所依據的主要指標。我們相信這能與股東形成非常緊密的一致性。

Finally, I'd like to note that the Board of Directors has nominated Michelle Felman, an accomplished executive with more than three decades of experience in real estate, finance, and investing, to serve as an independent director for election at the company's Annual Meeting of Stockholders to be held on May 21, 2024.

最後，我想補充說明，董事會已提名 Michelle Felman 女士—一位在不動產、金融與投資領域擁有逾三十年經驗的傑出高階主管—於 2024 年 5 月 21 日舉行的公司年度股東大會上，競選擔任獨立董事。

Michelle is set to fill the vacancy left by Katharine Wolanyk who has served as an independent director since January 2019 and who was not standing for reelection for a term which is set to expire at the annual meeting.

Michelle 將接任自 2019 年 1 月起擔任獨立董事、且其任期將於年度股東大會屆滿並未尋求連任的 Katharine Wolanyk 女士所留下的空缺。

I'd like to thank Katharine for her service to Acacia during a period of transition. Her voice and counsel have been invaluable, and on behalf of Acacia and our shareholders, I'd like to express our gratitude.

我想感謝 Katharine 在公司轉型期間對 Acacia 的服務。她的意見與建議一直極具價值；我謹代表 Acacia 與我們的股東，表達由衷的感謝。

Ms. Felman brings strong Board and operating expertise to Acacia, having served on several public and private company boards. She currently serves on the Board of Directors of Cushman & Wakefield, chairing the Nominating and Governance Committee and serving as a member of the Compensation Committee.

Felman 女士曾在多家上市與非上市公司董事會任職，為 Acacia 帶來深厚的董事會與營運專業。她目前擔任 Cushman & Wakefield 董事會成員，並擔任提名與公司治理委員會主席，同時也是薪酬委員會成員。

In addition, she recently completed her term as an advisory director at Investcorp, a leading provider and manager of alternative investment products. She also served as a trustee of the Partners Group, a global private equity firm, where she was Chair of the Investment Oversight Committee and a member of the Audit Committee, and the Compensation and Governance Committee.

此外，她近期也完成了在 Investcorp（替代投資產品的領先提供者與管理機構）擔任諮詢董事的任期。她亦曾擔任全球私募股權公司 Partners Group 的受託人（trustee），並在該公司擔任投資監督委員會主席，同時為審計委員會以及薪酬與公司治理委員會成員。

More on Ms. Felman's impressive background and experience can be found in our proxy materials located in the Filings & Financials section of our website. We're confident that Ms. Felman's deep and relevant industry expertise, as well as her experience on public company boards, will be invaluable to Acacia going forward.

關於 Felman 女士令人印象深刻的背景與經驗，更多資訊可見於我們網站「Filings & Financials」區域中的委託書相關資料。我們相信，Felman 女士深厚且高度相關的產業專業，以及其在上市公司董事會的經驗，未來將對 Acacia 極具價值。

I'd now like to turn the call over to Kirsten to discuss our first-quarter results.

接下來我想把電話會議交給 Kirsten，請她說明我們第一季的業績。

Thank you, MJ. Our GAAP book value at March 31, 2024, was $589.6 million or $5.89 per share. Excluding the impact of the additional accrual of $6.2 million related to the AIP Matter MJ discussed earlier, our book value per share at March 31, 2024, would have been $5.95 per share.

謝謝你，MJ。截至 2024 年 3 月 31 日，我們的 GAAP 帳面價值為 5.896 億美元，或每股 5.89 美元。若排除 MJ 先前提到、與 AIP 事項相關的額外 620 萬美元應計費用之影響，則截至 2024 年 3 月 31 日，我們每股帳面價值將為每股 5.95 美元。

Printronix generated $2.8 million in cash during the quarter, reflecting the changes and process improvements to optimize operational efficiencies that have taken place over the past year. We expect Printronix to continue to generate free cash flow on an annual basis. Benchmark's operating income during the quarter was $0.2 million, which included $0.4 million of noncash depreciation, depletion, and amortization, and does not reflect $0.8 million of realized derivative gains.

Printronix 本季產生 280 萬美元現金，反映過去一年為最佳化營運效率所進行的變革與流程改善。我們預期 Printronix 將持續以年度基礎產生自由現金流。Benchmark 本季營業利益為 20 萬美元，其中包含 40 萬美元的非現金折舊、耗竭與攤銷，且未反映 80 萬美元已實現的衍生性商品收益。

Now let me turn to the first-quarter results. Total revenues were $24.3 million compared to $14.8 million in the same quarter last year. Let me break this down between our operating segments. 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, reflecting an increase in the number of license agreements executed quarter over quarter and higher average license fees.

現在我來說明第一季的業績。總營收為 2,430 萬美元，去年同期為 1,480 萬美元。我將依我們的營運部門加以拆解。智慧財產權業務本季產生 1,360 萬美元的授權及其他收入，去年同期為 420 萬美元，主要反映季對季簽署的授權協議數量增加，以及平均授權費用提高。

Printronix, our industrial operations business, generated $8.8 million in revenues during the quarter compared to $10.6 million in the same quarter last year. Benchmark, our energy operations, which we acquired on November 13, 2023, generated $1.9 million in revenue in the quarter, which excludes gains on hedging contracts of $0.8 million.

我們的工業營運業務 Printronix 本季營收為 880 萬美元，去年同期為 1,060 萬美元。我們於 2023 年 11 月 13 日收購的能源營運業務 Benchmark，本季營收為 190 萬美元，此數字不包含避險合約的 80 萬美元收益。

As a reminder, in April, we closed Benchmark's first acquisition following Acacia's initial investment. Results from this acquisition will be reported beginning in our second quarter. Pro forma for the acquisition, we will own 73.5% of this subsidiary.

提醒一下，我們已於 4 月完成 Benchmark 在 Acacia 初始投資後的第一筆收購案交割。該收購案的業績將自我們第二季起開始反映。以該收購案的備考（pro forma）基礎計算，我們將持有此子公司 73.5% 的股權。

General and administrative expenses were $12.4 million compared to $12 million in the same quarter of last year, with the increase due to the increase in variable performance-based compensation costs for the intellectual property segment, partially offset by a decrease in parent legal fees and a decrease in Printronix G&A.

一般及行政費用為 1,240 萬美元，去年同期為 1,200 萬美元；增加的原因為智慧財產權部門與績效連動的變動薪酬成本上升，但部分被母公司法律費用下降以及 Printronix 一般及行政費用下降所抵銷。

Operating loss was $2.1 million compared to an operating loss of $9.3 million in the same quarter of last year, with the decrease due to higher revenues generated in the IP business. Printronix contributed $1.2 million in operating income, which included $0.7 million of noncash depreciation and amortization expense. Benchmark contributed $0.2 million in operating income, which included $0.4 million in noncash depreciation and depletion expense.

營業損失為 210 萬美元，去年同期營業損失為 930 萬美元；損失縮小主要因 IP 業務帶來較高營收。Printronix 貢獻 120 萬美元營業利益，其中包含 70 萬美元的非現金折舊與攤銷費用。Benchmark 貢獻 20 萬美元營業利益，其中包含 40 萬美元的非現金折舊與耗竭費用。

GAAP net loss attributable to Acacia Research Corporation was $0.2 million or $0.00 per share, compared to GAAP net income attributable to Acacia of $9.4 million or a loss of $0.07 per diluted share in the first quarter of last year. Diluted earnings per share adjust the numerator used in the basic earnings per share computation for the fair value adjustments on warrant and embedded derivative liabilities resulting in a diluted net loss attributable to common stockholders.

歸屬於 Acacia Research Corporation 的 GAAP 淨損為 20 萬美元，或每股 0.00 美元；相較之下，去年第一季歸屬於 Acacia 的 GAAP 淨利為 940 萬美元，或稀釋後每股虧損 0.07 美元。稀釋每股盈餘會就基本每股盈餘計算中所使用的分子，針對認股權證及嵌入式衍生性負債的公允價值調整進行調整，因而導致歸屬於普通股股東的稀釋後淨損。

Excluding the impact of the additional accrual relating to the AIP Matter, which represented $0.06 earnings per share, our earnings per share for the first quarter of 2024 would be $0.06 per share. As of March 31, 2024, our NOL totaled approximately $18 million. We will continue to evaluate the most efficient ways to maximize this asset.

若排除與 AIP 事項相關的額外應計影響（相當於每股盈餘 0.06 美元），我們 2024 年第一季的每股盈餘將為每股 0.06 美元。截至 2024 年 3 月 31 日，我們的 NOL（淨營運虧損結轉）總額約為 1,800 萬美元。我們將持續評估使該資產價值最大化的最有效方式。

Turning now to the balance sheet. 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. Equity securities without readily determinable fair value totaled $5.8 million at March 31, 2024, unchanged from December 31, 2023.

接著談資產負債表。截至 2024 年 3 月 31 日，現金、約當現金及按公允價值衡量的權益證券合計為 4.617 億美元，較 2023 年 12 月 31 日的 4.032 億美元增加。截至 2024 年 3 月 31 日，無可輕易確定公允價值的權益證券合計為 580 萬美元，與 2023 年 12 月 31 日持平。

Investment securities, representing equity method investments, net of noncontrolling interests, totaled $19.9 million at March 31, 2024, unchanged from December 31, 2023. Acacia owns 64% of Malin J1, which results in a 26% ownership stake in Viamet Pharmaceuticals for Acacia.

投資證券（代表採權益法核算之投資，扣除非控制性權益後）截至 2024 年 3 月 31 日合計為 1,990 萬美元，與 2023 年 12 月 31 日持平。Acacia 持有 Malin J1 的 64%，因此 Acacia 在 Viamet Pharmaceuticals 的持股比例為 26%。

The company currently carries no parent debt, having paid off its senior secured notes on July 13, 2023, and $13 million in nonrecourse debt at Benchmark as of March 31, 2024. We continue to believe that cash per share is an important metric for measuring our progress. As of March 31, 2024, our cash per share stood at $4.39 per share.

公司目前母公司層級無負債，因已於 2023 年 7 月 13 日償還其優先擔保票據；截至 2024 年 3 月 31 日，Benchmark 層級尚有 1,300 萬美元的無追索權債務。我們仍然認為每股現金是衡量我們進展的重要指標。截至 2024 年 3 月 31 日，我們的每股現金為每股 4.39 美元。

More details on these results have been made available in the press release that was issued this afternoon and in our quarterly report on Form 10-Q, which we will file with the SEC later today.

關於這些結果的更多細節，已在今天下午發布的新聞稿以及我們的 Form 10-Q 季度報告中提供；我們將於今日稍晚向 SEC 提交該報告。

With that, we'd be pleased to take your questions.

接下來，我們很樂意回答各位的提問。

(Operator Instructions) Brett Reiss, Janney Montgomery Scott.

(接線員指示) Brett Reiss，Janney Montgomery Scott。

Hi, MJ. Hi, Kirsten.

嗨，MJ。嗨，Kirsten。

Hey, Brett. How are you doing?

嗨，Brett。你最近怎麼樣？

Hi.

嗨。

I'm good. I just have a couple of questions to get my arms around the Bench.

我很好。我只有幾個問題，想先把 Benchmark 的情況弄清楚。

Benchmark?

Benchmark？

Yeah, Benchmark, sorry. So we basically have laid out $67 million for the 73.5% interest we have in it. Do we value it or mark it at $67 million. I'm just wondering why the book value after this investment did not move up?

對，Benchmark，不好意思。所以我們基本上為我們持有的 73.5% 權益投入了 6,700 萬美元。我們是以 6,700 萬美元來估值或按 6,700 萬美元入帳嗎？我只是想知道，為什麼在這筆投資之後帳面價值沒有上升？

Yeah, I mean -- so that's a great question, Brett. So it is valued -- well, two points. The $67 million for the second acquisition of Benchmark, remember, the first we made in November, and we invested roughly $10 million for half the company is marked to cost.

對，我的意思是——這是個很好的問題，Brett。所以它的估值——嗯，有兩點。關於 Benchmark 的第二次收購那 6,700 萬美元，請記得第一次是在 11 月，我們投入約 1,000 萬美元買了公司一半，這部分是按成本入帳。

The second investment, which is the much larger of the two, which we closed this year was actually closed in April. So it's not yet reflected in the numbers because it wasn't a first-quarter event, but you'll see that -- you'll start to see that in the second quarter.

第二筆投資，也就是兩筆中規模大得多的那一筆，我們今年完成交割其實是在 4 月。因此它尚未反映在數字中，因為那不是第一季發生的事項；但你會看到——你會在第二季開始看到它反映出來。

But broadly, how we think about it, when you do see it in the second quarter, is we're taking cash and we're investing it into those assets. And with those assets marked at cost, there's a little bit of expense that goes against it.

但整體而言，當你在第二季看到它時，我們的看法是：我們把現金拿去投資到那些資產上。而由於那些資產按成本入帳，會有一些小額費用沖抵。

Right.

了解。

The deal-related expenses, you shouldn't see a material appreciation of book value because you're trading cash for an asset, so you're just moving around the asset side of the balance sheet.

與交易相關的費用方面，你不應該會看到帳面價值有顯著上升，因為你是用現金換取一項資產，所以只是把資產負債表的資產端做了重新配置。

Okay. I appreciate that. Now somewhere in my notes, at the Benchmark company level, it was anticipated or expected to generate $45 million in EBITDA or cash -- operating cash flow. Do you recall this number?

好。我了解了，謝謝。另外在我的筆記裡，Benchmark 公司層級原本預期或估計可產生 4,500 萬美元的 EBITDA 或現金——營運現金流。你記得這個數字嗎？

Yeah. That's what we mentioned on our last call. It was cash flow at the asset level, which is effectively. Yeah.

記得。那是我們上次電話會議提到的。那是資產層級的現金流，基本上就是那樣。對。

Okay. All right. So we're entitled to 73.5% of that $45 million. And then what we don't know is what the SG&A on Benchmark is going to be. I'm just trying to get a handle on what -- or maybe you can just short cut it for me. I mean what do we own with Benchmark and -- so we can begin to feel -- get a sense of valuation?

好。好。所以我們有權取得那 4,500 萬美元的 73.5%。接著我們不知道的是 Benchmark 的 SG&A（銷售、一般及行政費用）會是多少。我只是想掌握一下——或者你也可以直接給我一個捷徑。我的意思是，我們透過 Benchmark 到底擁有什麼——這樣我們就能開始——對估值有個概念？

Yeah. So we own -- with Benchmark -- we are in a company called Benchmark. Benchmark owns two assets. They own the first asset that we bought half of, and they own the second asset, which we closed subsequent to the end of the quarter, which pro forma for our investment and our partner's equity investment into that, we will own 73.5% of the combination of those two assets --

對。所以我們擁有——透過 Benchmark——我們投資的是一家名為 Benchmark 的公司。Benchmark 擁有兩項資產。他們擁有第一項資產，也就是我們買了一半的那個；他們也擁有第二項資產，我們在季末之後完成交割。以我們的投資以及合作夥伴對該項目的股權投資來看，按備考口徑，我們將持有這兩項資產組合的 73.5%--

Okay.

好。

Which is roughly, together on a pro forma basis, $50 million of earnings, of which 73.5% would be net to our stake.

兩者合計按備考口徑大約是 5,000 萬美元的獲利，其中 73.5% 會歸屬於我們的持股。

Okay. Now that's aspirational, the $50 million in earnings. How long do you think it will take to gear up to achieve that?

好。那 5,000 萬美元的獲利是目標值。你認為要多久才能拉升到達成那個水準？

So you're not going to see it all in '24 because we closed the larger of the two acquisitions in April.

所以你不會在 2024 年看到全部反映，因為兩筆收購中較大的那一筆是在 4 月完成交割。

Right.

對。

That is at current oil and gas prices. And recall, we're hedged three years out, 70% on the strip. And so you'll start to see those numbers go through on a monthly basis. They will ramp because they'll come into our financial statements on a monthly and quarterly basis. But the company is running at that level of earnings today.

那是以目前的油氣價格為基礎。另外請記得，我們做了三年期避險，按期貨曲線（strip）對 70% 的部位進行避險。因此你會開始看到這些數字按月反映。它們會逐步爬升，因為會以每月與每季的方式併入我們的財務報表。但公司目前的獲利水準就是那個等級。

Right. And so monthly -- well, 0.735 times $50 million divided by 12, I mean eventually, we're going to see $2.5 million, $3 million of cash flow come to us from this investment.

對。所以按月——嗯，0.735 乘以 5,000 萬美元再除以 12，也就是說，最終我們會從這筆投資拿到每月 250 萬到 300 萬美元的現金流。

Every month. You'll see it quarterly, Brett. But yes, every month, that's roughly the amount of cash flow that will be generated in this investment.

每個月。你會按季看到它，Brett。但沒錯，每個月大概就是這筆投資會產生的現金流金額。

Why don't you do some more of this stuff?

你們為什麼不多做一些這類的事情？

Well, look, I mean that's -- we joke and laugh about it, but those are the types of opportunities that we're looking for. And so our strike zone is very tight in terms of risk management and risk-reward. And we do not want to be an oil and gas company.

嗯，你看，我的意思是那個——我們會拿這件事開玩笑、笑一笑，但那正是我們在尋找的那類機會。因此，就風險管理以及風險—報酬而言，我們的出手範圍非常嚴格。而且我們不想成為一家石油與天然氣公司。

We want to have a diversified portfolio, but we're looking at other opportunities in other industries where the profile is similar to this. And so those are the types of acquisitions that we're looking to add into our portfolio.

我們希望擁有多元化的投資組合，但我們也在其他產業尋找其他機會，其特性與這類機會相似。因此，這些就是我們希望納入投資組合的收購類型。

Right, right. Now one last one, a little change in direction. Last conference call, you mentioned strong pipeline of opportunities outside oil and gas. Another quarter has passed, and we've not seen your pull the trigger on any of it. And then you said earlier in your comments, deals, and bank credit is loosening up. Does this make it more likely you can get a deal or less likely?

對，對。那最後一個，稍微換個方向。上次法說會你提到在石油與天然氣以外有很強的機會管線。又過了一季，但我們還沒看到你們對其中任何一個扣下扳機。而且你剛才在評論中也提到，交易方面，銀行信貸正在放鬆。這會讓你們更可能做成一筆交易，還是更不可能？

Look, the way I would answer that question is to say that we're not looking to buy companies for the sake of buying companies. We're looking to buy companies where we can have a really nice risk-reward profile associated with them, and it -- the volume of M&A will be dictated by the types of opportunities we see. We are seeing a lot of things that are quite interesting right now.

你看，我回答這個問題的方式是：我們不是為了買公司而買公司。我們要買的是那些能帶來非常好的風險—報酬特性的公司，而——併購量將取決於我們看到的機會類型。我們現在確實看到很多相當有意思的標的。

We are looking at things that are off the run. We're looking at things that others don't understand. And in these types of transactions, we have counterparties, and we need to negotiate to a point where both counterparties are willing to transact.

我們在看一些不在主流視野內的東西。我們在看一些別人不理解的東西。而在這類交易中，我們有交易對手方，我們需要談判到雙方都願意成交的程度。

And that's our job is to find those opportunities and get to a point where we can transact at a price and on terms that are attractive to our shareholders. And so we're not looking to do an acquisition a month. We're looking to do an acquisition when that acquisition makes sense collectively for all of us to preserve and grow our capital base.

而我們的工作就是找到那些機會，並談到一個我們能以對股東具吸引力的價格與條件成交的點。所以我們不是要每個月做一筆收購。我們要在那筆收購對我們所有人整體而言有意義、能維持並成長我們資本基礎時才去做。

Right. One last one. It's the macroeconomic backdrop, is this ballyhooed soft landing? Or on the alternative, we have a hard landing, would a hard landing make it more likely you can get a deal outside of oil and gas done?

了解。最後一個。就總體經濟背景而言，是大家大肆宣傳的軟著陸嗎？或者反過來，如果是硬著陸，硬著陸會讓你們更可能在石油與天然氣以外完成一筆交易嗎？

I don't think it hurts, and it really just depends on the particular companies that we are seeing that we like and think there's opportunity in and who owns the companies and what the situation is. But we're not looking to make macro-related bets. If we have a hard landing, historically, that has been a very good time to buy companies if you have conviction around the cycle.

我不認為那會造成傷害，但這真的取決於我們看到、喜歡並認為有機會的特定公司，以及誰擁有這些公司、情況是什麼。但我們不打算做與總體相關的押注。如果出現硬著陸，從歷史來看，只要你對景氣循環有信念，那往往是買公司的非常好時機。

And so we are not calling the macro picture. We're not waiting for a recession. We're not assuming that the market will continue to be in a Goldilocks phase indefinitely. It's really a -- it's a case-by-case situation. And as I mentioned earlier, each of the companies that we're looking at is very idiosyncratic.

因此我們不去預測總體走勢。我們不會等著衰退來臨。我們也不會假設市場會無限期地維持在「剛剛好」的階段。這真的——是逐案評估的情況。而且如我先前提到，我們正在看的每家公司都非常具個別性。

Right. Thank you for answering all my questions. I will drop back in queue. Thank you.

了解。謝謝你回答我所有問題。我會回到隊列後面。謝謝。

Yeah. Of course. Thanks, Brett. Nice to hear from you.

好的。當然。謝謝你，Brett。很高興聽到你的聲音。

(Operator Instructions) Private investor, [Ron Heller].

(接線員指示) 個人投資人，[Ron Heller]。

Can you go through the cash on the balance sheet again? I think we went from $400 million and -- I heard two numbers, $439 million and $460 million. Can you clarify that?

你能再說明一次資產負債表上的現金嗎？我想我們是從4億美元——我聽到兩個數字，4.39億美元和4.60億美元。你能澄清一下嗎？

Yeah, Kirsten, do you want to take that one?

好的，Kirsten，你要回答這題嗎？

Sure, one sec. So yeah, the $439 million is our cash and cash equivalents as of the end of March, and then the $460 million includes our cash and equity securities.

可以，等一下。所以，4.39億美元是我們截至3月底的現金及約當現金，而4.60億美元則包含我們的現金以及權益證券。

And that's up from the previously reported $400 million. Can you tell me what the delta is on that?

而這比先前報告的4億美元增加。你能告訴我差額是什麼造成的嗎？

Sure. We had some receivables as of the end of December from our IP group that were all collected in the quarter. That was really the biggest driver of the increase. (multiple speakers)

當然。我們在12月底時，智慧財產（IP）事業群有一些應收款，這一季都收回來了。那是增加的最大驅動因素。(多位講者)

Oh, sorry, excuse me -- and also, as we mentioned, in the fourth quarter, we recorded an unrealized gain on our Arix investment for the forward sale contract that we had. That closed also in the quarter and turned to cash.

喔，不好意思——另外，如我們提到的，在第四季我們就所持有的Arix投資之遠期出售合約認列了一筆未實現收益。該合約也在本季結算並轉為現金。

Yes. So Ron, if you take the December 31 cash number, add the cash receipts from the intellectual property business and the Arix sale, which moved from a marketable security to cash with a slight gain associated to the 12/31 marketable security number when we actually converted it into cash. That's how you get to the numbers that Kirsten is talking about.

是的。所以Ron，如果你用12月31日的現金數字，加上智慧財產業務的現金收款以及Arix出售案（它從可交易證券轉為現金，且相較於12/31的可交易證券數字，在實際轉現時有一點點相關收益），這就是你會得到Kirsten所說那些數字的原因。

And then the other number that I mentioned is pro forma for the funding of the second Benchmark acquisition. We'll have approximately $400 million of cash and securities, of liquid marketable securities that we can use to go deploy into other acquisitions.

另外我提到的另一個數字，是以第二筆Benchmark收購案完成資金到位後的擬制（pro forma）基礎計算。我們將約有4億美元的現金與證券，也就是可立即變現的有價證券，可用來投入其他收購。

Okay. Two more questions. Back in November of 2023, the company announced a buyback of stock, no obligation to buy stock back, but I think it was $20 million, not to exceed 5 million shares. Has the company bought any stock back to date?

好的。還有兩個問題。回到2023年11月，公司宣布了一項庫藏股回購，沒有義務一定要回購，但我記得是2,000萬美元，上限不超過500萬股。截至目前公司有回購任何股票嗎？

We have not bought any stock back yet, Ron.

Ron，我們目前還沒有回購任何股票。

Okay. And did the company intend to buy stock back, back when they made the announcement in the fourth quarter? And if so, why hasn't the company bought any stock back considering it's been, in some cases, a 30% discount to book value?

好的。那公司在第四季做出公告時，原本有打算回購股票嗎？如果有，為什麼公司至今沒有回購，考量到股價在某些時候相對於帳面價值折價達30%？

I appreciate you asking the question. We're evaluating it on a consistent basis, and we're seeing a lot of opportunities to deploy cash into acquisitions. So we -- when we think it's opportunistic, we'll buy stock back. And if we don't think it's opportunistic, or it's less opportunistic than making acquisitions, then we use cash to make acquisitions.

謝謝你提出這個問題。我們一直在持續評估，而我們也看到很多把現金投入收購的機會。所以——當我們認為具有機會性時，我們就會回購股票。如果我們認為不具機會性，或其機會性不如進行收購，那我們就會把現金用於收購。

One footnote question regarding the allotted time and releases -- time and conversation and the CC in the release has been on book value per share. And is my math correct that if you did buy stock back or any company bought stock back at a significant discount that it would, by definition, increase book value per share?

有一個關於註腳的問題，涉及分配的時間與新聞稿——在時間與對話方面，以及新聞稿中的 CC 一直是以每股帳面價值為基礎。而且我的計算是否正確：如果你們回購股票，或任何公司以顯著折價回購股票，按定義就會提高每股帳面價值？

As a general theory, yes, that is correct. The magnitude of which this buyback increases book value per share is attractive. But again, we have attractive ways to deploy the capital.

就一般理論而言，是的，你說得沒錯。這次回購提高每股帳面價值的幅度是很有吸引力的。但再說一次，我們也有很有吸引力的資本部署方式。

Okay. Thank you.

好的。謝謝。

Of course.

當然。

Adam Eagleston, Formidable Asset Management.

Adam Eagleston，Formidable Asset Management。

Hey, MJ and Kirsten. How are you today?

嗨，MJ 和 Kirsten。你們今天好嗎？

Hey, Adam. How's it going?

嗨，Adam。最近怎麼樣？

Hi.

嗨。

Good, good, doing well. Ron beat me to the punch on the buyback question but would love to hear little bit more. I echo his sentiment about that being seen as the cost of capital, so to speak. I hope that's the way you and the Board are looking at it.

很好很好，狀況不錯。Ron 已經搶先問了回購的問題，但我還是很想再多聽一些。我也同意他的看法，把那視為某種意義上的資本成本。我希望你們和董事會也是這樣看待的。

In terms of the legacy Woodford assets, you don't talk much about those. They're sort of orphaned at this point. Any impetus by management to divest those or do something with them? Is there a market out there for those assets?

關於傳承下來的 Woodford 資產，你們不太談這些。它們目前有點像被擱置的資產。管理層是否有任何動機要處分它們或對它們做些什麼？市場上有這些資產的買盤嗎？

Yeah. I appreciate you asking the question. And you're right, we didn't mention it in the transcript. I would use the term non-core as opposed to orphan maybe because we do work those assets pretty hard. And hence, the goal is to create liquidity on those assets. And as you know, there are two biotech companies. The overwhelming majority of the value there is two biotech companies, and we are actively working to create liquidity in those positions.

是的。謝謝你提出這個問題。你說得對，我們在逐字稿裡沒有提到。我會用「非核心」這個詞，而不是「被擱置」，因為我們其實對這些資產投入了相當多的工作。因此，我們的目標是為這些資產創造流動性。如你所知，主要是兩家生技公司。那裡的價值絕大多數來自兩家生技公司，我們正積極推動讓這些持倉具備流動性。

Got it. Great. And that's a good segue actually as we think about the market opportunities out there. You mentioned biotech, and there's clearly a lot of carnage in that space. Is there any opportunity in that orphan biotech space?

了解。很好。這其實也是個很好的銜接，因為我們在思考市場上的機會。你提到生技，這個領域顯然出現了大量慘況。在那種被擱置的生技領域有沒有任何機會？

And again, apologies for the pejorative term. But with regards to some publicly traded biotech that are sub cash, et cetera, or is that one of those cliche kind of too hard stacked as you think about the public market opportunity?

再次為我用的貶義詞道歉。但就一些公開交易的生技公司而言，有些股價低於現金等情況，

I mean, I think the answer to the question is a little bit in between the two kind of goalposts you put out there. I would say, in the past, we have evaluated some of the net-nets in the pharmaceutical world. One of the issues is, without control, you can't really effect the change or the trajectory of the cash burn, which gives us a little bit of heartburn.

我的意思是，我覺得答案介於你提出的兩個端點之間。我會說，過去我們評估過一些製藥領域的 net-net（淨淨股）。其中一個問題是，如果沒有控制權，你其實無法真正推動改變或影響現金消耗的走勢，這讓我們有點不安。

And then with the control, you're effectively taking technology risk, and that's not really the business that we've set out to be in. We're looking for companies with durable earnings. And so there is potential alpha in those names.

而如果取得控制權，你等於是在承擔技術風險，這並不是我們一開始要做的生意。我們在找的是具備持久獲利能力的公司。所以那些標的確實可能有超額報酬（alpha）。

I'm candidly not sure that we're the right people with the right folks on staff and experience to be able to pick that horse. And so while it is alluring from a valuation standpoint, for us, we don't know -- we're not exactly sure how we create value out of those opportunities as opposed to just betting on a horse.

坦白說，我不確定我們是否是對的人——也不確定我們的團隊人員配置與經驗是否足以挑中那匹馬。因此，雖然從估值角度看很誘人，但對我們而言，我們不確定要如何從那些機會中創造價值，而不只是押注一匹馬。

Got it. Sure. That's fair. Thanks for taking the call.

了解。當然。這很合理。謝謝接聽。

Yeah. Of course.

好的。當然。

[Todd Selter, 88 Management].

[Todd Selter，88 Management]。

Thank you. Congratulations on a solid quarter. Quick question.

謝謝。恭喜本季表現穩健。我有個簡短問題。

Thanks, Todd.

謝謝，Todd。

When I look at the income statement, we're sitting with $400 million large. And I know T-bills and money market accounts are yielding in the area of 5%, which should generate somewhere around $5 million a quarter. Where do we see any income generated from our liquidity on our income statement?

我看損益表，我們手上大約有 4 億美元。我知道國庫券和貨幣市場帳戶的殖利率大約在 5% 左右，這應該每季能產生約 500 萬美元。我們在損益表上哪裡可以看到由流動性資產產生的收入？

Kirsten, do you want to take that one?

Kirsten，你要回答這題嗎？

Yeah. You'll see that in the other operating or other income and expense, and there's a line, interest income and other, is $4.9 million for the quarter.

好。你會在「其他營運」或「其他收入與費用」裡看到，裡面有一行「利息收入及其他」，本季是 490 萬美元。

Great. Okay. Appreciate that, Kirsten.

很好。好的。謝謝你，Kirsten。

Sure.

不客氣。

Okay. MJ, keep up the good work with the team. We appreciate you and thank you.

好的。MJ，和團隊繼續保持好表現。我們很感謝你，也謝謝你。

Yeah. Thanks, Todd.

好的。謝謝，Todd。

There appears to be no further questions in queue at this time. I would now like to turn the floor back over to MJ for any closing remarks.

目前排隊中似乎沒有其他問題。現在我想把時間交還給 MJ，請他做任何結語。

All right. Thanks for everyone's participation here today. Thanks for paying attention. And we appreciate the questions and the conversations, and most importantly, we appreciate the idea flow that we get from you all because we're -- you're an investor in us, but we're all in the same business in certain ways. And so we love to hear the ideas that come our way from you all and we'll talk to you next quarter.

好。感謝各位今天的參與。謝謝大家的關注。我們也很感謝各位的提問與交流；最重要的是，我們很感謝你們帶來的想法流，因為我們——你們是我們的投資人，但在某些方面我們其實都在同一個產業裡。因此我們很樂於聽到各位帶來的想法，我們下個季度再聊。

Thank you, everyone. This does conclude today's conference call. You may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation.

謝謝各位。今天的電話會議到此結束。你們現在可以掛斷電話線，祝各位有美好的一天。感謝各位的參與。