Innovate Corp. · NYSE:VATE
Innovate — HC2 Holdings — Q1 2020 Earnings Presentation
14 slides from Innovate's earnings presentation, May 11, 2020
Slide 1: HC2 Holdings, Inc. Q1 2020 Earnings Release Supplement
HC2 Holdings, Inc. Q1 2020 Earnings Release Supplement May 11, 2020 © HC2 HOLDINGS, INC. 2020
Slide 2: Safe Harbor Disclaimers: Cautionary Statement Regarding Forward-Looking Statements
Safe Harbor Disclaimers Cautionary Statement Regarding Forward-Looking Statements Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This earnings release supplement contains, and certain oral statements made by our representatives from time to time may contain, forwar
Slide 3: Safe Harbor Disclaimers: Non-GAAP Financial Measures
Safe Harbor Disclaimers Non-GAAP Financial Measures In this earnings release supplement, HC2 refers to certain financial measures that are not presented in accordance with U.S. generally accepted accounting principles (“GAAP”), including Adjusted EBITDA (excluding the Insurance segment) and Adjusted
Slide 4: COVID-19: HC2's Immediate Priorities
COVID-19: HC2's Immediate Priorities 1 Promoting our Employee's Safety & Well-Being • Maximizing remote work arrangements to promote employee health and well-being. • Construction has been deemed an "essential" business in most states in which DBM Global has operations. – Following CDC guidelines at
Slide 5: COVID-19: Segment Impact
COVID-19: Segment Impact How is COVID-19 Impacting Our Segments? Construction Commercial Fabrication and Erection • Most projects in backlog remain relatively on schedule, but a minority of projects have experienced delays at customer request. • Continuing to see bidding opportunities and continued
Slide 6: COVID-19: Segment Update
COVID-19: Segment Update How is COVID-19 Impacting Our Segments? Insurance Telecommunications Continental Insurance PTGi ICS • Could be impacted by volatility in credit spreads, • As an international wholesale telecom service company fluctuations in portfolio market prices and rating agency that pro
Slide 7: Q1 2020 Key Highlights
Q1 2020 Key Highlights HC2 Holdco • Completed $76.9M partial redemption of 11.5% Notes using proceeds from the GMG sale. • Expect to imminently close on the sale of the 30% interest in Huawei Marine Networks (HMN). • Upon closing, will utilize HMN proceeds to redeem over $50M of additional 11.5% Not
Slide 8: Strategic Initiatives Update
Strategic Initiatives Update Delivering on Key Strategic Initiatives ü Marine Asset Sales ü Debt Reduction ü Holdco Cost Reductions Global Marine Group Sale Initial Steps Taken Initiatives Taking Effect • In February, completed the sale of GMG • Completed $76.9M partial redemption of • Decrease in r
Slide 9: HC2 Financial Summary
HC2 Financial Summary Selected GAAP Financials (in millions, except per share amounts) Three Months Ended March 31, Increase 2020 2019 (Decrease) Net revenue $ 444.8 $ 449.0 $ (4.2) Total operating expenses 471.6 423.4 48.2 Income (loss) from operations (26.8) 25.6 (52.4) Interest expense (21.3) (18
Slide 10: HC2 Segment Financial Summary
HC2 Segment Financial Summary Non-GAAP Measures1: Adjusted EBITDA & Pre-tax Insurance AOI (in millions) Three Months Ended March 31, Increase / 2020 2019 (Decrease) Core Operating Subsidiaries Construction $ 9.0 $ 12.4 $ (3.4) Energy 3.8 1.0 2.8 Telecommunications 0.4 0.8 (0.4) Total Core Operating
Slide 11: Non-GAAP Reconciliations
Non-GAAP Reconciliations © HC2 HOLDINGS, INC. 2020 11
Slide 12: Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA, Q1 2020
Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA (in millions) Three Months Ended March 31, 2020 Core Operating Subsidiaries Early Stage & Other Other and Non-operating Construction Energy Telecom Life Sciences Broadcasting Eliminations Corporate HC2 Net loss attributable to HC2 Holdings
Slide 13: Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA, Q1 2019
Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA (in millions) Three Months Ended March 31, 2019 Core Operating Subsidiaries Early Stage & Other Other and Non-operating Construction Energy Telecom Life Sciences Broadcasting Elimination Corporate HC2 Net loss attributable to HC2 Holdings,
Slide 14: Reconciliation of U.S. GAAP Income to Pre-tax Insurance AOI
Reconciliation of U.S. GAAP Income to Pre-tax Insurance AOI The table below shows the adjustments made to the reported Net income (loss) of the Insurance segment to calculate Insurance AOI and Pre-tax Insurance AOI (in millions). Three months ended March 31, Increase / 2020 2019 (Decrease) Net incom