FG Group Holdings Inc. (NYSE:FGH) Q3 2023 Earnings Call Transcript

FG Group Holdings Inc. (NYSE:FGH) Q3 2023 Earnings Call Transcript November 10, 2023

Operator: Good morning, and welcome to the FG Group Holdings Earnings Conference Call for the Third Quarter of 2023. At this time, all participants are in a listen-only mode, and a question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, John Nesbett of IMS Investor Relations. John, you may begin.

John Nesbett: Thank you. Good morning, and welcome to FG Group Holdings earnings conference call for the quarter ended September 30, 2023. On the call today are Mark Roberson, Chief Executive Officer; Todd Major, Chief Financial Officer; and Kyle Cerminara, Chairman of the Board of Directors. Before we begin, I would like to remind everyone that some statements made on this call will be forward-looking in nature. These statements are based on management's current view and expectations as of today, and the company is under no obligation and expressly disclaims any obligation to update forward-looking statements, except as required by law. These statements are also subject to risks and uncertainties and may cause actual results to differ materially from those described in today's call.

An executive presenting share and portfolio performance of the investment management company to a boardroom full of investors.

Risks and uncertainties are also described in the company's SEC filings. Today's presentation and discussion also contains references to non-GAAP financial measures. The definition of non-GAAP terms and reconciliations to GAAP measures are available in the earnings release posted on the Investor Relations section of the website. Our non-GAAP measures may not be comparable to those used by other companies, and we encourage you to review and understand all of our financial reporting before making any investment decisions. I'd also like to remind everyone that there is a slide presentation accompanying today's presentation on the company's website. So at this time, I'll turn the call over to Mark Roberson. Please go ahead, Mark.

Mark Roberson: Thanks, John. Good morning, and thank you all for joining us today, and Happy Veterans Day to those of you who served. We've been transitioning FG Group Holdings into a holding company really over the past several years. A few of the key steps in that process and accomplishments including: turning around and then monetizing the Convergent operating business, converting our digital signage business into what is now our investment at Firefly, investing in ITASCA Capital and then turning that into GreenFirst. And, most recently, completing the separation and the initial public offering at Strong Global Entertainment. When you look at FGH today, our core holdings include the controlling stake in Strong Entertainment, where we hold approximately 76% of the common shares; and non-controlling stakes in GreenFirst, FG Financial and Firefly.

We also still have commercial real estate holdings in Georgia as well as in Quebec. These valuable real estate holdings were retained when we sold the Convergent business and when we spun out the Strong Entertainment business earlier this year. We will start with Strong Global Entertainment which, again, continues to be consolidated as part of the FGH financial statements and represents the majority of the operating results that you'll see in our financial statements. I know that many of you may have listened to our call last night for Strong Global Entertainment, which is also available for replay on their Investor Relations site. So we'll keep things pretty high-level this morning. If you want to refer to Slides 5 through 7, at Strong, we are continuing to see strong organic growth with increasing demand from our exhibitors for laser upgrades and other investments they're making in upgrading their auditoriums to premium cinema.

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