ALJ is the successor to Network Entertainment Theaters (“NET”).  When ALJ’s management team became involved with NET it had no operating business, had approximately $1.0mm in cash and net operating losses (NOL) of approximately $270.0mm.

In March 2005, ALJ bought Kentucky Electric Steel (KES) for $65.0mm.  In February 2013, ALJ sold KES for $114.4mm in cash. The gain on sale was shielded from cash taxes by ALJ’s existing NOLs.

After the sale of KES, ALJ continued to be acquisitive. In 2013, ALJ acquired Faneuil for $53.0 mm and in 2015 acquired Phoenix Color for $88.3mm. Over the years, tuck-in acquisitions were made for Faneuil and Phoenix businesses. In April 2022, Faneuil sold its Transportation & Tolling and Health Benefit Exchange contracts for $142.3mm while retaining the remainder of business and the entire Phoenix Color business was sold for $136.4mm

In August 2022 ALJ purchased an unsecured convertible promissory note from Hallador Hallador Energy Co (NASDAQ: HNRG) for $10mm and in September 2022 ALJ purchased 80.01% equity interest in Ranew’s for $20.8mm.