Innovate Corp. · NYSE:VATE
Innovate — Q3 2021 Earnings Presentation
16 slides from Innovate's earnings presentation, Nov 4, 2021
Slide 1: INNOVATE Corp. Q3 2021 Earnings Release Supplement
© INNOVATE Corp. 2021 INNOVATE Corp. Q3 2021 Earnings Release Supplement November 4, 2021
Slide 2: Safe Harbor Disclaimers: Forward-Looking Statements
© INNOVATE Corp. 2021 Safe Harbor Disclaimers 2 Cautionary Statement Regarding Forward-Looking Statements Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This presentation contains, and certain oral statements made by our representatives from time to time may contai
Slide 3: Safe Harbor Disclaimers: Non-GAAP Financial Measures
© INNOVATE Corp. 2021 Safe Harbor Disclaimers 3 Non-GAAP Financial Measures In this earnings release supplement, INNOVATE refers to certain financial measures that are not presented in accordance with U.S. generally accepted accounting principles (“GAAP”), including Adjusted EBITDA, which excludes r
Slide 4: Third Quarter 2021 Summary
© INNOVATE Corp. 2021 Top-line growth achieved in all three business segments Third Quarter 2021 Summary 4 ■ Closed the sale of Continental General Holdings (Insurance segment) ■ Infused R2 Technologies with $15 million in Series C funding to continue rollout and development ■ R2 Technologies’ Novel
Slide 5: Segment Highlights
© INNOVATE Corp. 2021 ■ Infused R2 with $15 million to continue the rollout and development of its products. ■ Glacial Rx® earns third FDA indication, becoming the first and only Class II dermal cooling system FDA-cleared for dermabrasion ■ In dialogue with the FDA regarding commencement of U.S. Piv
Slide 6: Consolidated Q3 Results
© INNOVATE Corp. 2021 Consolidated Q3 Results ■ Revenue increased $224.3M or 131.6% driven by our Infrastructure segment, due primarily to DBM's recent acquisition of Banker Steel and increases across the DBM platform ■ Net Loss attributable to common stock and participating preferred stockholders o
Slide 7: Debt Summary and Liquidity
© INNOVATE Corp. 2021 (1) Borrowing rate on Line of Credit reduced from LIBOR plus 6.75% to LIBOR plus 5.75% in February 2021. (2) Excludes cash included in Discontinued Operations. (3) Debt Maturity Profile excludes Preferred Stock and capital leases (4) Infrastructure Line of Credit reflects matur
Slide 8: Segment Highlights - Infrastructure
© INNOVATE Corp. 2021 ■ 138.2% revenue increase due to the acquisition of Banker Steel as well as higher revenues across DBM's service offering ■ Adjusted EBITDA increase can be attributed by the contribution from Banker Steel, partially offset by margin compression at the DBM legacy businesses ■ Re
Slide 9: Segment Highlights - Life Sciences
© INNOVATE Corp. 2021 MediBeaconR2 Technologies (1) Investment-to-date totals and equity ownership percentages are as of September 30, 2021. (2) MediBeacon agents and devices are not approved for human use by any regulatory agency. Company Investment to Date Equity % Fully Diluted % R2 Technologies
Slide 10: Segment Highlights - Spectrum
© INNOVATE Corp. 2021 Financials ($ millions) 3Q21 3Q20 Station Group $ 4.7 $ 4.1 Network ("Azteca") 5.5 5.6 Revenue $ 10.2 $ 9.7 Net Loss $ (4.1) $ (14.6) Adjusted EBITDA (1) $ 1.8 $ (0.2) 10 Segment Highlights - Spectrum HC2 Broadcasting ("Broadcasting") 218 45 223 Central Cast Integrated Operatin
Slide 11: Appendix: Select GAAP Financials & Non-GAAP Reconciliations
© INNOVATE Corp. 2021 Appendix Select GAAP Financials & Non-GAAP Reconciliations
Slide 12: INNOVATE Selected GAAP Financials
© INNOVATE Corp. 2021 INNOVATE Selected GAAP Financials Income Statement - Unaudited (in millions) Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Revenue $ 394.8 $ 170.5 $ 810.4 $ 538.9 Cost of revenue 339.7 138.8 688.4 447.7 Gross profit 55.1 31.7 122.0 91.2 Op
Slide 13: Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA
© INNOVATE Corp. 2021 Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA 13 (in millions) Three months ended September 30, 2021 Infrastructure Life Sciences Spectrum Non-operating Corporate Other and Eliminations INNOVATE Net (loss) attributable to INNOVATE Corp. $ (211.9) Less: Discontinu
Slide 14: Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA
© INNOVATE Corp. 2021 Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA 14 (in millions) Nine months ended September 30, 2021 Infrastructure Life Sciences Spectrum Non-operating Corporate Other and Eliminations INNOVATE Net (loss) attributable to INNOVATE Corp $ (222.8) Less: Discontinued
Slide 15: Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA
© INNOVATE Corp. 2021 Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA 15 (in millions) Three months ended September 30, 2020 Infrastructure Life Sciences Spectrum Non-operating Corporate Other and Eliminations INNOVATE Net (loss) attributable to INNOVATE Corp. $ (17.3) Less: Discontinue
Slide 16: Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA
© INNOVATE Corp. 2021 Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA 16 (in millions) Nine months ended September 30, 2020 Infrastructure Life Sciences Spectrum Non-operating Corporate Other and Eliminations INNOVATE Net (loss) attributable to INNOVATE Corp $ (87.3) Less: Discontinued