Mount Logan Capital Inc (MLCI) 2023 Q4 法說會逐字稿

Good morning, and welcome to 180 Degree Capital Corp’s Fourth Quarter 2023 Financial Results Update 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.

早上好，歡迎參加 180 Degree Capital Corp 的 2023 年第四季財務業績更新電話會議。我是 Daniel Wolfe，180 Degree Capital 總裁兼投資組合經理。我們的執行長兼投資組合經理凱文·倫迪諾 (Kevin Rendino) 和我歡迎您今天早上參加我們的電話會議。

(Event 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.

（活動說明）我想提醒參與者，本次電話會議正在錄音，我們將參考我們在投資者關係網站 ir.180 Degreecapital.com 的財務業績項下發布的幻燈片。

Please turn to our Safe Harbor statement on slide 2. 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 our filings with the Securities and Exchange Commission for a more detailed discussion of the risks and uncertainties associated with 180 Degree Capital’s business that could affect our actual results. Except as otherwise required by Federal Securities Laws, 180 Capital Corp undertakes no obligation to update or revise these forward-looking statements to reflect new events or uncertainties.

請參閱投影片 2 上的安全港聲明。本簡報可能包含與未來事件相關的前瞻性陳述。本簡報中包含的前瞻性聲明旨在根據 1995 年《私人證券訴訟改革法案》的安全港條款作出。這些前瞻性陳述在預測未來結果和條件時受到固有的不確定性的影響。這些陳述反映了公司目前的信念，許多重要因素可能導致實際結果與此處表達的結果有重大差異。請參閱我們向美國證券交易委員會提交的文件，以了解與 180 Degree Capital 業務相關的可能影響我們實際業績的風險和不確定性的更詳細討論。除非聯邦證券法另有要求，180 Capital Corp 不承擔更新或修改這些前瞻性陳述以反映新事件或不確定性的義務。

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

我現在想把電話轉給凱文。

Thank you, Daniel, and good morning, everyone. Let me start with the conclusion before diving into the details of the quarter. I've been managing money for over 30 years and have been an investor portfolio manager since 1988. Never in my life have I been more convinced that we own a collection of companies that I believe have the potential to rise materially in value as much as the portfolio TURN has put together as we start 2024.

謝謝你，丹尼爾，大家早安。在深入探討本季的細節之前，讓我先從結論開始。我從事資金管理已有 30 多年，自 1988 年以來一直擔任投資者投資組合經理。我一生中從未如此堅信，我們擁有一批公司，我相信這些公司的價值有潛力大幅上漲，就像 TURN 在 2024 年開始時整合的投資組合一樣。

We're also at a point where I believe our constructive activism will make a difference in this value creation. While the last two years have been incredibly frustrating and disappointing, I'm grateful it's over, and we are off to a flying start in 2024. Just look at what we own at the end of the quarter and look at the performance of those names: companies like Synchronoss.

我相信我們的建設性積極行動將在價值創造方面發揮重要作用。雖然過去兩年令人難以置信的沮喪和失望，但我很慶幸一切都結束了，我們將在 2024 年迎來一個好的開始。只要看看我們在本季末擁有的資產，以及這些公司的業績：像 Synchronoss 這樣的公司。

Having had that 30-year experience of knowing that challenging performance periods happen, during these periods, it is crucial that you don't shy away from talking about them, you don't become over-emotional about them, and you stick to your knitting and process no matter how painful the period can be. Somebody sent me a quote once and it said, the one willing to look the stupidest the longest, wins. Over the last two years, we feel stupid on the one hand, yet on the other, we couldn't be more optimistic about what we own. (technical difficulty) that significant value appreciation is possible in the next few years.

擁有 30 年的經驗，知道具有挑戰性的表現時期會發生，在這些時期，至關重要的是，您不要迴避談論它們，不要對它們變得過於情緒化，並且要堅持自己的想法。無論這段時期有多麼痛苦，都要編織和加工。曾經有人寄過一句話，上面寫著：誰願意讓自己看起來最愚蠢，時間最長，誰就贏。在過去的兩年裡，我們一方面感到自己很愚蠢，但另一方面，我們對自己擁有的東西感到無比樂觀。 （技術難度）未來幾年可能會大幅升值。

The fourth quarter of 2023 we hope was a start of what we believe will be a return to risk asset classes, including the microcap stocks in which we invest. Our 7% gross total return in our public portfolio was the primary contributor to the growth of our NAV per share from $4.91 to $5.02. Our assets on our balance sheet are now almost 100% comprised of investments in public companies and cash. You can see those slides, and we posted them on our website for details of the sources of change in our portfolio during Q4 2023, the full year, and inception to date.

我們希望 2023 年第四季是風險資產類別（包括我們投資的微型股）回歸的開始。我們的公共投資組合 7% 的總回報率是每股資產淨值從 4.91 美元增長到 5.02 美元的主要貢獻者。我們資產負債表上的資產現在幾乎 100% 由對上市公司的投資和現金組成。您可以查看這些投影片，我們將它們發佈在我們的網站上，詳細了解 2023 年第四季、全年以及成立至今我們的投資組合變化來源。

On the macroeconomic front, the resilience of the US economy, combined with the apparent end of the Fed's tightening cycle and potential future reductions in interest rates, should be one tailwind for our investments in general in 2024. For 180, we believe 2024 will be a year defined by our constructive activism and by long-awaited catalysts at certain of our portfolio companies that together, could lead to material value creation for 180 Degree Capital's stockholders.

在宏觀經濟方面，美國經濟的韌性，加上聯準會緊縮週期的明顯結束以及未來可能的降息，應該成為我們2024年整體投資的一大推動力。對 180 而言，我們相信 2024 年將是由我們的建設性行動主義和我們某些投資組合公司期待已久的催化劑所定義的一年，這些催化劑共同可能為 180 Degree Capital 的股東創造物質價值。

On slide 4, this will be the very last time we show you this chart. Seven years ago, we embarked on a program designed to recreate ourselves, and we did just that. Just to remind everyone, when we started, 75% of our assets were in private companies. During the last seven years, through good markets and bad, we incurred losses from that private portfolio of $25 million, while at the same time, generating $31 million in gains from our public portfolio. As we start 2024, that headwind is gone. No longer do I have to sit on pins and needles at the end of a quarter, hoping our VC investments and the marks we take wouldn't offset good public stock performance. We worry no more. That chapter is shut and in 2024, we're off to a great start. We're a pure-play markets small-cap activist.

在投影片 4 上，這將是我們最後一次向您展示此圖表。七年前，我們啟動了一項旨在重塑自我的計劃，我們也確實做到了。提醒大家一下，我們剛開始的時候，75%的資產都在私人公司。在過去七年中，無論市場好壞，我們的私人投資組合都遭受了 2,500 萬美元的損失，同時，我們的公共投資組合卻帶來了 3,100 萬美元的收益。隨著 2024 年的到來，這種逆風已經消失。我不再需要在季度末坐立不安，希望我們的創投和我們獲得的分數不會抵消良好的公開股票表現。我們不再擔心。這一章已經結束，到 2024 年，我們將迎來一個好的開始。我們是一家純粹的市場小型股激進分子。

In terms of what helped and hurt in the quarter, please turn to slide 5. Potbelly had the biggest positive effect, as the company delivered yet another strong quarter of same-store sales growth and record weekly sales per store. On the franchising side, the company has announced nearly 200 new shop commitments to date.

關於本季的優缺點和弊端，請參閱投影片 5。Potbelly 產生了最大的正面影響，該公司同店銷售額又實現了強勁的季度成長，每家店的周銷售額創歷史新高。在特許經營方面，該公司迄今已宣布開設近 200 家新店。

ComScore went up by 36% in the quarter, because although missing the top line, the company did exceed estimates for EBITDA. We have continued our activism there, and we'll have more on that in a few minutes.

ComScore 在本季上漲了 36%，因為儘管該公司未能實現營收，但其 EBITDA 確實超出了預期。我們在那裡繼續我們的行動，幾分鐘後我們將提供更多資訊。

Despite selling its non-core messaging and digital assets, Synchronoss stock declined in the quarter by 28%. We joined the Board late in the year, and as you can see, the performance of the stock since that time through yesterday has been stupendous. We're very excited about the potential to work with the management team and the Board there, and we'll talk about that involvement shortly also.

儘管出售了非核心訊息和數位資產，Synchronoss 股價在本季仍下跌了 28%。我們在今年年底加入了董事會，正如您所看到的，從那時到昨天，該股票的表現一直是驚人的。我們對與那裡的管理團隊和董事會合作的潛力感到非常興奮，我們也將很快討論這種參與。

Arena reported weaker-than-expected results due to softness in the advertising market and changes in search display information that reduced click-through rates. Subsequent to the report, B. Riley sold its stake in Arena to the owner of Bridge Media Networks, who previously announced an agreement to buy 65% of the company. There's been a series of management changes, delays in completion of the S-4, and the potential end of the partnership with ABG to license the Sports Illustrated brand. This has become a work in progress all over again, but one with significant opportunity to create value.

Arena 報告的表現低於預期，原因是廣告市場疲軟以及搜尋顯示資訊的變化降低了點擊率。在報告發布後，B. Riley 將其在 Arena 的股份出售給 Bridge Media Networks 的所有者，他先前宣布同意購買該公司 65% 的股份。管理層發生了一系列變動，S-4 的完工進度被推遲，與 ABG 的《體育畫報》品牌授權合作關係也可能終止。這又成為一項正在進行的工作，但具有創造價值的重要機會。

Look at this chart on slide 6. This quote-unquote recession, which has been one of the drivers of capital away from risk assets to perceived safer assets, has been the most fun and awesome one ever. Every recession should look like the one that everyone has called for or said we're in.

請參閱投影片 6 上的圖表。這次經濟衰退一直是資本從風險資產轉向被認為更安全的資產的驅動因素之一，也是有史以來最有趣、最令人敬畏的一次。每一次衰退都應該是每個人都呼籲或說我們正陷入的衰退。

But sarcasm aside, persistent predictions of a return to arguably more normal interest rates have absolutely not led to an economic calamity. Instead, GDP rose 3.1% in 2023, wages and salaries grew 4.7%, which is good for consumer spending, real private fixed investment in manufacturing structures reached all-time highs, and employment remains strong. I didn't live through the 1929 recession, but I did experience 1990, 1998, 2000, and the near depression in 2008, as well as 2020. And 2023, I'm comfortably saying, looks absolutely nothing like those recessions.

但撇開諷刺不談，利率回歸可以說更正常的持續預測絕對不會導致經濟災難。相反，2023年GDP成長3.1%，薪資和薪水成長4.7%，這有利於消費者支出，製造業結構的實際私人固定投資達到歷史最高水平，就業依然強勁。我沒有經歷過1929年的經濟衰退，但我確實經歷了1990年、1998年、2000年，以及2008年的近乎蕭條，以及2020年。我可以輕鬆地說，2023 年看起來完全不像那些經濟衰退。

Despite strong macroeconomic trends in 2023, somehow, a basket of microcap companies that comprise the Russell Microcap Index underperformed the Nasdaq-100 by over 4,600 basis points. In our last shareholder letter, we incorporated a plethora of charts showing that microcap companies are historically inexpensive and undervalued relative to larger-sized companies. While substantially all of this data and charts remain applicable today, I'm not going to regurgitate them. You can see them from my last letter, and you can visit that on our website.

儘管 2023 年宏觀經濟趨勢強勁，但不知何故，構成羅素微型股指數的一籃子微型股公司的表現仍落後納斯達克 100 指數超過 4,600 個基點。在我們上一封股東信中，我們納入了大量圖表，顯示微型股公司相對於大型公司來說歷史上價格低廉且被低估。雖然基本上所有這些數據和圖表今天仍然適用，但我不會重複它們。您可以從我的上一封信中看到它們，也可以在我們的網站上訪問它們。

Instead, I'll note commentary regarding Q4 2023 from Royce Investment Partners, who we hold in very high regard. They talked about the valuations for small-caps and how highly attractive they are versus large caps. We think, quote, it bears repeating that even with the terrific fourth quarter '23 and a positive return in 2023, the Russell 2000 finished the year well shy of its 11/8/21 peak, while large caps continue to establish new highs in the fourth quarter of '23.

相反，我會注意到 Royce Investment Partners 對 2023 年第四季的評論，我們非常尊重 Royce Investment Partners。他們討論了小型股的估值以及它們相對於大盤股的吸引力。我們認為，值得重申的是，儘管23 年第四季表現出色，並且2023 年實現了正回報，但羅素2000 指數今年的表現仍遠低於21 年8 月11 日的峰值，而大盤股繼續在2023 年創下新高。23 年第四季。

In fact, it's been 563 days since the current cycle low for the Russell 2000, the third largest span without recovering the prior peak on record. Fallout from the investment bubble -- Internet Bubble, saw small-caps need 456 days from their trough to match their previous peak, while it took 704 days for small caps to recover their prior peak following their trough in the 2008, 2009 financial crisis. Each of these periods saw dramatic developments: the implosion of high-flying technology stocks in 2000 and a global financial catastrophe in 2008.

事實上，距離羅素 2000 指數當前週期低點已經過去了 563 天，這是沒有恢復有史以來的第三大跨度。投資泡沫－網路泡沫的影響，小型股需要 456 天才能從低谷回到之前的峰值，而在 2008 年和 2009 年金融危機的低谷之後，小型股花了 704 天才恢復到之前的峰值。每個時期都經歷了戲劇性的發展：2000 年飛速發展的科技股的崩盤和 2008 年的全球金融災難。

This current period has seen ample uncertainty for sure, but -- and a record pace of interest rate increases, yet it lacks the existential threats that characterized the Internet Bubble and even more so, the financial crisis. The latter period also saw less bifurcation between small- and large-cap returns, yet based on our preferred index valuation metric of enterprise value to earnings before interest and taxes, or EV to EBIT, the Russell 2000 finished 2023 not far from its 25-year low relative to the Russell 1000.

當前時期肯定存在大量的不確定性，而且利率上漲速度創紀錄，但缺乏網路泡沫甚至金融危機所特有的生存威脅。後期小型股與大盤股報酬率之間的分歧也較小，但根據我們首選的企業價值與息稅前利潤的指數估值指標，或企業價值與息稅前利潤的比率，羅素2000 指數在2023 年結束時距其25-相對於羅素 1000 指數而言，為年內最低點。

On slide 7, even with the increases in small and microcap stocks that we saw in Q4, the IWM to S&P ratio remains at historical lows. We continue to believe that the ratio says nothing about the fundamentals of the businesses that comprise each index, given those fundamentals have held up better for many microcap companies than the index performance would suggest.

在幻燈片 7 中，即使我們在第四季度看到小型股和微型股的成長，IWM 與標準普爾的比率仍處於歷史低點。我們仍然認為，該比率並不能說明構成每個指數的企業的基本面，因為許多微型股公司的基本面比指數表現所顯示的更好。

We think we're at the end of the Fed hiking cycle. We are not in the camp that the Fed will be cutting rates anytime soon, because we believe the economy will continue to show the resilience that it showed last year. That in our view is a positive, not a negative. Our portfolio companies do not require lower rates to execute and build value for shareholders. They benefit from the types of positive economic trends we saw in 2023, and continue to see in the beginning parts of 2024. And against that backdrop, we expect many of our holdings, which are trading at historically low valuations, have a long runway to rise in value and help us increase our net asset value per share.

我們認為聯準會升息週期已結束。我們不認為聯準會很快就會降息，因為我們相信經濟將繼續展現去年所展現的韌性。我們認為這是積極的，而不是消極的。我們的投資組合公司不需要較低的利率來執行並為股東創造價值。他們受益於我們在 2023 年看到的積極經濟趨勢，並將在 2024 年初繼續看到這種趨勢。在此背景下，我們預計我們持有的許多股票（其估值處於歷史低點）將有很長的升值空間，並幫助我們提高每股資產淨值。

Let's look at a few of our current names. But before that, I thought I'd do something a tad different this call, and review what we believe is a distinct part of our investment process. That is our constructive activism. Turn to slide 8. Few investors are willing to spend the time and energy identifying, conducting diligence on, and actively engaging with companies to unlock intrinsic value. We believe the opportunity for value creation in US microcapitalization publicly traded stocks exists, because management teams and Boards often prioritize revenue growth over operating profits, favor the status quo versus change, lack the understanding of buy-side investors and the workings of the public markets in general, do not appreciate the impact of flawed capital structure on shareholder returns, and entrench themselves to protect their jobs and positions.

讓我們來看看我們現在的一些名字。但在此之前，我想我應該在這次電話會議上做一些不同的事情，並回顧我們認為是我們投資流程的獨特部分。這就是我們的建設性行動主義。轉到投影片 8。很少有投資者願意花費時間和精力來識別、盡職調查並積極與公司合作以釋放內在價值。我們相信美國小額資本公開交易股票存在創造價值的機會，因為管理團隊和董事會經常將收入成長置於營業利潤之上，傾向於維持現狀而不是改變，缺乏對買方投資者和公開市場運作的了解一般來說，他們不認識到有缺陷的資本結構對股東回報的影響，並鞏固自己的地位以保護自己的工作和職位。

To be clear, we are not corporate raiders. Our ultimate goal is to engage constructively with existing Boards and management teams to unlock value through resolution of capital structure or other overhangs that we believe inhibit growth of shareholder value; the realignment of financial performance to achieve growth of an operating profit, not just revenues; the improvement of investor relations strategies and outreach; the evaluation of strategic options, including M&A, sales, divestitures; the identification of complementary talent and expertise; and the alignment of interest with and support from large shareholders. There's many ways that we can add value.

需要明確的是，我們不是企業掠奪者。我們的最終目標是與現有董事會和管理團隊進行建設性的合作，透過解決資本結構或其他我們認為抑制股東價值成長的問題來釋放價值；調整財務表現以實現營業利潤的成長，而不僅僅是收入的成長；改善投資者關係策略和外展；策略選擇的評估，包括併購、銷售、資產剝離；識別互補的人才和專業知識；與大股東的利益一致和支持。我們可以透過多種方式增加價值。

We're not adverse, however, to pursue changes through other routes, including private and public shareholder communications, proxy solicitations and/or joining Boards of directors of our portfolio companies. All efforts, however, will be grounded and based on our fundamental research and diligence.

然而，我們並不反對透過其他途徑尋求變革，包括私人和公共股東溝通、代理徵集和/或加入我們投資組合公司的董事會。然而，所有努力都將基於我們的基礎研究和勤奮。

We have different levels of activism, as you can see on slide 9. Level 1 doesn't require substantial time or involvement. Level 2, our suggestions start to become active. And Level 3, we work directly with management teams on specific outcomes, whether that's Board seats or specific overhangs that exist that are hurting the stock price of that company.

正如您在幻燈片 9 中看到的，我們有不同程度的激進主義。1 級不需要大量時間或參與。第 2 級，我們的建議開始變得活躍。第三級，我們直接與管理團隊就特定結果進行合作，無論是董事會席位還是存在的損害該公司股價的特定懸而未決的問題。

On the next slide, you could see the types of specific ways we have utilized our activism. The companies we own and the type of activism that we have utilized are listed on this slide. Sometimes, our activism is outward and apparent like comScore. In other cases, it's quiet and behind the scenes.

在下一張投影片上，您可以看到我們利用行動主義的具體方式類型。這張幻燈片列出了我們擁有的公司以及我們所採用的激進主義類型。有時，我們的行動主義是外在的、顯而易見的，就像 comScore 一樣。在其他情況下，它是安靜的、在幕後的。

In no way, however, will we ever get involved in a company unless we have identified ways in which we think we can help a company and its share price recover. That is the opportunity. It could be suggested improvements to presentations and transparency, recommending various potential paths towards improving financial performance, as I said, developing structures and providing financing that results in simplifying capital structures, or joining Boards. And in many cases, we've run strategic alternative processes for companies that have led to the sale of the company or certain of its assets. My point in all of this is never has the need been greater for the type of assistance that we can provide.

然而，除非我們找到了我們認為可以幫助一家公司及其股價恢復的方法，否則我們絕對不會參與一家公司的投資。這就是機會。正如我所說，可以建議改善演示和透明度，推薦各種可能的改善財務績效的途徑，開發結構並提供融資，從而簡化資本結構，或加入董事會。在許多情況下，我們為公司運行了策略替代流程，從而導致了公司或其某些資產的出售。我在所有這一切中的觀點是，對我們能夠提供的援助類型的需求從未如此強烈。

And finally, on slide 9, are two examples. Our involvement with Synchronoss has been one of collaboration since our initial investment. Synchronoss provides white-label technology that enables large corporations to offer customers cloud-based storage of personal data. Synchronoss's platform powers the personal cloud offerings of a number of Tier 1 companies like Verizon, SoftBank, AT&T, Assurant, British Telecom, and Tracfone under long-term contracts.

最後，投影片 9 上有兩個範例。自最初投資以來，我們與 Synchronoss 的合作一直是合作之一。Synchronoss 提供白標技術，使大型企業能夠為客戶提供基於雲端的個人資料儲存。Synchronoss 的平台根據長期合約為 Verizon、SoftBank、AT&T、Assurant、British Telecom 和 Tracfone 等許多一級公司的個人雲端產品提供支援。

We first invested in Synchronoss as part of an underwritten financing in June of 2021, that allowed Synchronoss to pay off its punitive preferred stock and recapitalize the company with reduced interest expense, while also providing flexibility going forward to execute on the strategic options for the business. The first of these strategic alternatives was completed in Q4 of 2023, with the sale of Synchronoss' non-core messaging and digital businesses. Synchronoss is now a pure-play, cloud-focused business with high margins, and is on the cusp of generating significant free cash flows.

作為 2021 年 6 月承銷融資的一部分，我們首次投資了 Synchronoss，這使得 Synchronoss 能夠償還其懲罰性優先股並以減少的利息支出對公司進行資本重組，同時也為執行業務戰略選擇提供了靈活性。第一個策略替代方案於 2023 年第四季完成，出售了 Synchronoss 的非核心訊息傳遞和數位業務。Synchronoss 現在是一家專注於雲端運算的純業務，利潤率很高，而且即將產生大量自由現金流。

Our bullish view for 2024 is centered around a number of catalysts that we believe will improve Synchronoss's balance sheet and demonstrate the operating leverage of the business. First, Synchronoss has stated that it expects to generate free cash flow and have other cash flows in 2024. That inflow of capital will allow Synchronoss to de-lever. Second, Synchronoss is expecting to return to top-line revenue growth after the runoff of its historical deferred revenue and its continued growth in subscribers as largest customer, Verizon, and its newest customer, SoftBank. Third, the end of non-recurring charges related to restructuring and prior litigation and corresponding settlements, coupled with revenue growth and a material reduction in interest paid on its outstanding debt, should lead to material free cash flow generation in 2024, that we believe will grow substantially in 2025. Lastly, we should note that in December of '23, we were asked to join Synchronoss's Board of Directors to help with the company's execution on its next phase of growth. We couldn't be more excited.

我們對 2024 年的樂觀看法主要圍繞一系列催化劑，我們相信這些催化劑將改善 Synchronoss 的資產負債表並展示該業務的營運槓桿。首先，Synchronoss表示預計在2024年產生自由現金流並擁有其他現金流。資本的流入將使 Synchronoss 能夠去槓桿化。其次，在歷史遞延收入消失以及作為最大客戶 Verizon 及其最新客戶軟銀的用戶持續成長之後，Synchronoss 預計將恢復收入成長。第三，與重組和先前訴訟及相應和解相關的非經常性費用的結束，加上收入的增長和未償債務支付的利息的大幅減少，應該會在2024 年產生大量的自由現金流，我們認為這將2025年將大幅成長。最後，我們應該注意到，2023 年 12 月，我們被要求加入 Synchronoss 董事會，以幫助公司執行下一階段的成長。我們非常興奮。

As we look at what that means for the stock price of Synchronoss, it ended last year at $6.21, which equated to a multiple of enterprise value to estimated 2024 EBITDA of approximately 5.6 times. This multiple declines to approximately 5.2 times if Synchronous receives the kinds of inflows it should receive this year from its tax refund. We do not believe a cloud-focused business with 85% to 90% recurring revenue, 70% to 75% gross margins, and 25%-plus EBITDA margin, that also generates positive free cash flows should command such a low multiple. In our opinion, a more appropriate multiple would be in the double digits. And if so, the stock has a chance to go to well north of $20 a share and approach $30 a share, just based on that valuation change. We believe this is just the start of Synchronoss, and 2024 will be a turning point for Synchronoss, both in terms of its business and how investors value the stock.

當我們看看這對 Synchronoss 的股價意味著什麼時，它去年收於 6.21 美元，相當於企業價值對 2024 年預計 EBITDA 的約 5.6 倍。如果 Synchronous 收到今年應從退稅中獲得的資金流入，則該倍數將下降至約 5.2 倍。我們認為，以雲端為中心、經常性收入為85% 至90%、毛利率為70% 至75%、 EBITDA 利潤率超過25%、並且還產生正自由現金流的業務不應擁有如此低的市盈率。我們認為，較適合的倍數是兩位數。如果是這樣，僅根據估值變化，該股就有機會升至每股 20 美元以上並接近每股 30 美元。我們相信這只是 Synchronoss 的開始，2024 年將是 Synchronoss 的轉捩點，無論是在業務方面還是投資者對股票的估值方面。

While our investment with comScore started out as a collaboration, the continued gridlock on the comScore Board towards resolving capital structure issues and other governance issues has led to another level for us of activism as we embark on a potential proxy contest that we are 100% prepared to launch this spring.

雖然我們與comScore 的投資一開始是合作，但comScore 董事會在解決資本結構問題和其他治理問題方面持續陷入僵局，這導致我們的行動主義達到了另一個水平，因為我們開始了潛在的代理權爭奪，我們已做好100% 的準備今年春天推出。

Our initial investment in comScore took place in 2021, following its recap by Charter, Cerberus and Liberty. Our original thesis for our investment was centered on multiple factors, including our belief that comScore was a company with uniquely competitive media management offerings and proprietary data; comScore's new investments would help with improved execution, financial performance, and overall growth; and comScore traded at a significant discount to its peers.

我們對 comScore 的初始投資是在 Charter、Cerberus 和 Liberty 對其進行回顧後於 2021 年進行的。我們最初的投資論點集中在多個因素上，包括我們相信 comScore 是一家擁有獨特競爭力的媒體管理產品和專有數據的公司； comScore 的新投資將有助於提高執行力、財務表現和整體成長； comScore 的交易價格較同業大幅折扣。

While comScore's business has improved dramatically under new management with 33% EBITDA growth over the last two years, the stock has declined precipitously. We believe this is due to poor corporate governance and uncertainty around comScore's capital structure.

儘管 comScore 的業務在新管理層的領導下取得了顯著改善，過去兩年 EBITDA 成長了 33%，但該公司股價卻急劇下跌。我們認為這是由於公司治理不善以及 comScore 資本結構的不確定性所造成的。

As a result, we have ramped up our activism significantly through the nomination of Matt McLaughlin as a Director nominee for consideration at comScore's upcoming Annual Meeting of Stockholders. Matt is a retired advertising technology executive and naval officer. Most recently, he served as Chief Operating Officer of DoubleVerify Holdings, a software and platform company for digital media measurement and analytics. He served there from 2011 to 2022. As COO of DoubleVerify, Matt directed its product engineering and sales operations activity, including managing over half the company's employees.

因此，我們透過提名 Matt McLaughlin 為董事候選人，在 comScore 即將召開的股東年會上進行審議，大大加強了我們的積極行動。馬特是一位退休的廣告技術主管和海軍軍官。最近，他擔任 DoubleVerify Holdings 的首席營運官，該公司是一家數位媒體測量和分析軟體和平台公司。他於 2011 年至 2022 年期間在那裡任職。身為 DoubleVerify 的營運長，Matt 負責指導其產品工程和銷售營運活動，包括管理公司一半以上的員工。

Given comScore's struggles with and focus on improving its digital offerings, we can think of nobody more useful to this comScore Board and management than Matt. He has been available to speak with comScore stockholders. Ones that wish to speak with him can reach us directly. While we actively are preparing to run a competitive proxy campaign to support his candidacy, we certainly hope that comScore's Board will realize the complementary skill set that we believe he can bring to help build value for all of comScore's stakeholders, and that a competitive proxy contest will not be required.

鑑於 comScore 正在努力改善其數位產品並專注於改進其數位產品，我們認為沒有人比馬特對 comScore 董事會和管理層更有用。他已與 comScore 股東進行了交談。想要與他交談的人可以直接聯絡我們。雖然我們正在積極準備進行競爭性代理競選活動以支持他的候選資格，但我們當然希望comScore 董事會能夠認識到我們相信他可以帶來的互補技能組合，以幫助為comScore 的所有利益相關者創造價值，並且競爭性代理競選不會被要求。

Let me stop there and turn it over to Daniel.

讓我就此打住並將其交給丹尼爾。

Thanks, Kevin. Please turn to slide 13. As we noted in our press release on February 1 of '24, the discount of our NAV to stock price was approximately 26% as of the end of January '24. This discount equates to a NAV at the end of January that was approximately 8% higher than at the end of 2023.

謝謝，凱文。請翻到投影片 13。正如我們在 2024 年 2 月 1 日的新聞稿中指出的，截至 24 年 1 月底，我們的資產淨值相對於股價的折扣約為 26%。這項折扣相當於 1 月底的資產淨值比 2023 年底高出約 8%。

We established the Discount Management Program to make it clear that the management and Board of 180 Degree Capital are serious about our intentions to narrow this discount. At the end of each measurement period, our Board will consider all available options, including but not limited to, a larger buyback than the 5 million currently authorized, a cash distribution that will be considered a return of capital, or a tender offer.

我們制定了折扣管理計劃，以明確表示 180 Degree Capital 的管理層和董事會對於我們縮小折扣的意圖是認真的。在每個衡量期間結束時，我們的董事會將考慮所有可用的選擇，包括但不限於比目前授權的 500 萬美元更大的回購、將被視為資本回報的現金分配或要約收購。

The management and Board are completely aligned with our stockholders, in that we collectively own about 12% of 180 Degree Capital's outstanding shares. And this ownership continues to grow solely through open market purchases, largely of after-tax dollars. We are laser-focused on creating value for all stockholders of 180 through growth of our NAV and the narrowing of this discount.

管理階層和董事會與我們的股東完全一致，我們共同擁有 180 Degree Capital 流通股的約 12%。而這種所有權僅透過公開市場購買（主要是稅後美元）繼續成長。我們專注於透過增加資產淨值和縮小折價為 180 的所有股東創造價值。

Please turn to slides 14 and 15. We provided similar slides last quarter, and thought it would be useful to do so this quarter as well. Subsequent to the end of '23, many of our portfolio companies issued press releases that provided updates on their respective businesses. We summarized a number of these releases on these slides.

請翻到投影片 14 和 15。我們在上個季度提供了類似的幻燈片，並認為本季這樣做也會很有用。23 年底後，我們的許多投資組合公司發布了新聞稿，提供了各自業務的最新資訊。我們在這些投影片上總結了其中的一些版本。

Potbelly continued to report strong growth that exceeded expectations, and announced a new credit facility that provides meaningful interest savings and financial flexibility to fund growth initiatives. Synchronoss announced completion of its cost removal program at the upper end of its initial target range, along with strong performance for the fourth quarter of '23.

Potbelly 繼續報告超越預期的強勁成長，並宣布了一項新的信貸安排，為成長計畫提供有意義的利息節省和財務靈活性。Synchronoss 宣布其成本削減計劃已完成，達到其初始目標範圍的上限，同時 23 年第四季的業績表現強勁。

Manoj Bhargava is now the majority owner of Arena Group through a $12 million investment at a substantial premium to the company's trading price at the day of when that investment was made. Arena also filed the Form S-4 registration statement for the merger with Mr. Bhargava's Bridge Media.

Manoj Bhargava 現在透過 1,200 萬美元的投資成為 Arena Group 的大股東，投資金額遠高於該公司投資當天的交易價格。Arena 也提交了與 Bhargava 先生的 Bridge Media 合併的 S-4 表格登記聲明。

ComScore announced a new agreement with Nexstar that we believe will lead to Nexstar being a top 10 customer for comScore. Ascent is now focused on its chemicals business through the appointment of that division's President and CFO as the new CEO and CFO of the entire company. Brightcove announced a new streaming deal with the second-largest TV network in Brazil. CVG Equipment, under its new CEO, is rationalizing its business through divesting non-core assets.

ComScore 宣布與 Nexstar 達成一項新協議，我們相信該協議將使 Nexstar 成為 comScore 的十大客戶之一。Ascent 現在透過任命該部門的總裁和財務長為整個公司的新執行長和財務官，專注於其化學品業務。Brightcove 宣布與巴西第二大電視網絡達成新的串流媒體協議。CVG Equipment 在新任執行長的領導下，正在透過剝離非核心資產來合理化其業務。

Mama's Creations held an Analyst Day recently. While you can't take advantage of sampling the food at the event in person, you can order its products from Mama's website and enjoy them at home, while listening to Adam Michaels and his team describe what they believe will be substantial growth ahead.

Mama's Creations 最近舉辦了分析師日活動。雖然您無法親自在活動中品嚐食物，但您可以從 Mama 的網站訂購產品並在家中享用，同時聆聽 Adam Michaels 和他的團隊描述他們認為未來將大幅增長的產品。

Even our legacy private holding that completed public listing, D-Wave Systems, announced new partnerships and the availability of a new quantum computer through its quantum cloud offering. These announcements are just a sampling of what we believe sets up '24 as a year where multiple value-creating catalysts could occur, and if they do, could drive meaningful growth for TURN and its shareholders.

即使是我們完成公開上市的傳統私人控股公司 D-Wave Systems，也宣布了新的合作夥伴關係，並透過其量子雲端產品推出了新的量子電腦。這些公告只是我們認為 24 年可能出現多種價值創造催化劑的一個例子，如果出現的話，可能會為 TURN 及其股東帶來有意義的成長。

Lastly, I would like to note that we included additional slides that contain metrics from the quarter, year, and inception to date in an appendix at the end of the slide deck on our website. We're not going to discuss those slides in the prepared remarks today, but we would be happy to answer questions on them any time. We would now like to open the line for questions (Event Instructions)

最後，我想指出的是，我們在網站幻燈片末尾的附錄中添加了額外的幻燈片，其中包含季度、年度和成立至今的指標。我們不會在今天準備好的發言中討論這些幻燈片，但我們很樂意隨時回答有關它們的問題。我們現在想開通提問熱線（活動須知）

While we're waiting for questions, one last comment from me. Now that essentially 100% of our assets are in public companies, and most of you know that we're investors and not traders, you should be able to do the math and figure out what our NAV is at any given point in time during the quarter by looking at what our holdings were at the end of last quarter.

在我們等待問題的同時，我最後發表一條評論。現在我們的資產基本上 100% 都在上市公司，而且你們大多數人都知道我們是投資者而不是交易員，你們應該能夠計算並算出我們在任何給定時間點的資產淨值是多少。透過查看上季末我們的持倉情況來了解我們的季度情況。

Now, that's not going to be an exact science, because sometimes we obviously trade in and out of quarters. And then, of course, you have to subtract expenses as well. But you should have a much clearer picture of where we stand and how we're doing during the course of a quarter. And that's something that we couldn't have said at any time in the last seven years.

現在，這不會是一門精確的科學，因為有時我們顯然會進出季度進行交易。當然，你還必須減去費用。但您應該更清楚地了解我們在一個季度中的處境以及我們的表現。這是我們在過去七年裡任何時候都不能說的話。

Our NAV growth is now almost 100% aligned towards our public stock performance. And as you know or can see, given what's happened year to date, if we continue to own the stocks that we owned at the end of last quarter, our NAV is materially higher than it was at the end of last quarter and approaching $6 and far away from $5.

我們的淨值成長現在幾乎 100% 與我們的公開股票表現一致。正如您所知或可以看到的，考慮到今年迄今為止發生的情況，如果我們繼續持有上季度末持有的股票，我們的資產淨值將大大高於上季度末，接近 6 美元，離5美元還很遠。

So I'll stop there, Daniel, and see if we have any questions.

丹尼爾，我就到此為止，看看我們是否有任何問題。

(Event Instructions)

（活動須知）

Excellent, no questions. I mean, we either gave a complete performance analysis and nobody had anything to ask, or nobody was on the phone. Either way, I wish everybody a good day, a much better 2024. As I said, we're off to a very good start. We're excited about that. We're excited about the amount of stock that we own in TURN, given the potential for us to increase our NAV and narrow that discount going forward. Have a good 2024. Thanks.

非常好，沒有問題。我的意思是，我們要么提供了完整的性能分析，但沒有人有任何問題要問，或者沒有人接電話。不管怎樣，我祝大家有美好的一天，2024 年會更好。正如我所說，我們有了一個非常好的開始。我們對此感到興奮。考慮到我們未來有可能增加資產淨值並縮小折扣，我們對 TURN 所擁有的股票數量感到興奮。祝福您 2024 年一切順利。謝謝。

And if anyone has any questions, feel free to reach out to us at any time. Thank you very much, and you can now disconnect.

如果有人有任何疑問，請隨時與我們聯繫。非常感謝，您現在可以斷開連接了。