180 Degree Capital Corp. (NASDAQ:TURN) Q3 2023 Earnings Call Transcript

180 Degree Capital Corp. (NASDAQ:TURN) Q3 2023 Earnings Call Transcript November 14, 2023

Daniel Wolfe: [Call starts abruptly] Third 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. All participants are currently in a listen-only mode. Following our prepared remarks, we will open the line to ask to questions. [Operator Instructions] I would like to remind participants that this call is being recorded, and that we are will be referring to a slide deck that we have posted on our Investor Relations website at ir.180degreecapital.com under financial results. Please turn to 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 and predicting future results and conditions. These statements reflect the Company's current beliefs and a number of important factors could cause actual results to differ materially from those expressed herein. Please see the Company's filings with the Security and Exchange Commission for a more detailed discussion of the risks and uncertainties associated with the Company's business that could affect the Company's actual results, except as otherwise required by federal securities laws, 180 Capital Corp undertakes no obligation to update or revise these forward-looking statements to reflect new events or uncertainties.

A close-up of a corporate businessperson using a modern laptop to manage the company's finances.

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

Kevin Rendino: Thank you, Daniel, and good morning, everyone. I want to leave you with a few key thoughts this morning. Our business transformation is essentially complete after this past quarter 97% of our assets are now in public companies. While it took over six years to get to this point, it is over. For those that are keeping track, since I arrived and 180 came to be in 2017, we have generated nearly $3 per share or specifically $2.77 in gains from our new strategy. We have had losses over the same period of time of $2.28 from the historic legacy positions of Harris & Harris. To be candid, this business probably wouldn't exist if we hadn't changed our stripes in 2017. And while the last seven quarters have been a challenge for our public holdings, the market and specifically the microcap indices, we now have a liquid easily transparent balance sheet to be able to understand our NAV is easy to calculate.

Therefore, as we said from day one, the discount our stock trades at relative to our NAV should be far less than it was when our book was 80% privates. To that end, we announced a discount management program that Daniel will speak to later in this call. It's important that the reality of our discount mirror, the thesis we had for it when we first started. To be clear, the most important thing we can do is invest in companies that rise in value, so the absolute value of our NAV climbs. There is a reason our stock traded at close to $9 per share at the end of 2021. It was because we grew our NAV to over $10 per share from where it was when we started, and while the last seven quarters have been a challenge for our holdings in the micro-cap index in general, we believe this period has set us up to once again grow our NAV as we look beyond this incredibly volatile and bearish market.

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