Innovate Corp. · NYSE:VATE
Innovate — Q2 2022 Earnings Presentation
16 slides from Innovate's earnings presentation, Aug 3, 2022
Slide 1: INNOVATE Corp. Q2 2022 Earnings Release Supplement
INNOVATE Corp. Q2 2022 Earnings Release Supplement August 3, 2022 © INNOVATE Corp. 2022
Slide 2: Safe Harbor Disclaimers
Safe Harbor Disclaimers 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 contain, "forward-looking stat
Slide 3: Safe Harbor Disclaimers: Non-GAAP Financial Measures
Safe Harbor Disclaimers 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 results for discontinued
Slide 4: Second Quarter 2022 Highlights
Second Quarter 2022 Highlights Delivered strong second quarter results as INNOVATE continues to make progress across its operating businesses (1) ■ Second Quarter 2022 revenue and Adjusted EBITDA growth of 60.9% and 86.2%, respectively ■ DBM delivered 64.7% growth in revenue while maintaining backlo
Slide 5: Segment Highlights
Segment Highlights Infrastructure Highlights Life Sciences Highlights Spectrum Highlights ■ Reported Backlog = $1.5B ■ 2Q22 Adjusted EBITDA(2) of $0.4M ■ Total adjusted backlog(1) = $1.7B ■ R2 has shipped 171 GLACIAL ■ Finished construction of new ■ Converting backlog to revenue devices globally in
Slide 6: Q2 2022 Financial Highlights
Q2 2022 Financial Highlights Revenue Consolidated Q2 Results ■ Revenue increased $148.4M or 60.9% driven by our Infrastructure segment, due primarily to DBM's ($ millions) 2Q22 2Q21 acquisition of Banker Steel on May 27, 2021, and increases in Infrastructure market demand along with larger projects
Slide 7: Segment Highlights - Infrastructure
Segment Highlights - Infrastructure DBM Global ("DBM") Overview Financials ($ millions) 2Q22 2Q21 ■ 64.7% revenue increase due to the acquisition of Banker Steel as well as an increase from the fabrication and erection business, partially Revenue $ 382.1 $ 232.0 offset by a decrease at the industria
Slide 8: Segment Highlights - Life Sciences
Segment Highlights - Life Sciences Pansend Life Sciences ("Pansend") R2 Technologies MediBeacon ■ R2 has now shipped 171 GLACIAL® devices to customers globally ■ Initiated Transdermal GFR Measurement System (TGFR) FDA Pivotal Study on June 26 ■ The study targets a total of 140 subjects over the next
Slide 9: Segment Highlights - Spectrum
Segment Highlights - Spectrum HC2 Broadcasting ("Broadcasting") Overview Financials ■ Finished all station builds targeted in 2022 ($ millions) 2Q22 2Q21 ■ Currently completing the build-out of a new station for license WKOB- Station Group $ 4.7 $ 4.6 LD in New York City. The new site for the statio
Slide 10: Current Credit Picture
Current Credit Picture Debt Summary Debt Amortization and Maturity Profile ($ millions) Maturity Jun-22 Dec-21 $500.0 ($ millions) $461.8 8.50% Senior Secured Notes 2026 $ 330.0 $ 330.0 7.50% Convertible Senior Notes 2022 — 3.2 $400.0 7.50% Convertible Senior Notes 2026 51.8 51.8 Line of Credit 2024
Slide 11: Appendix: Select GAAP Financials & Non-GAAP Reconciliations
Appendix Select GAAP Financials & Non-GAAP Reconciliations © INNOVATE Corp. 2022
Slide 12: INNOVATE Selected GAAP Financials
INNOVATE Selected GAAP Financials Income Statement - Unaudited (in millions) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Revenue $ 392.2 $ 243.8 $ 805.0 $ 415.6 Cost of revenue 341.9 207.4 704.9 348.7 Gross profit 50.3 36.4 100.1 66.9 Operating expenses: Selling, genera
Slide 13: Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA
Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA (in millions) Three Months ended June 30, 2022 Non-operating Other and Infrastructure Life Sciences Spectrum Corporate Elimination INNOVATE Net (loss) attributable to INNOVATE Corp. $ (12.4) Less: Discontinued operations — Net Income (loss
Slide 14: Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA
Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA (in millions) Six Months ended June 30, 2022 Non-operating Other and Infrastructure Life Sciences Spectrum Corporate Eliminations INNOVATE Net (loss) attributable to INNOVATE Corp. $ (24.8) Less: Discontinued operations — Net Income (loss)
Slide 15: Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA
Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA (in millions) Three Months ended June 30, 2021 Non-operating Other and Infrastructure Life Sciences Spectrum Corporate Elimination INNOVATE Net (loss) attributable to INNOVATE Corp. $ (23.5) Less: Discontinued operations (1.5) Net Income (
Slide 16: Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA
Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA (in millions) Six Months ended June 30, 2021 Non-operating Other and Infrastructure Life Sciences Spectrum Corporate Eliminations INNOVATE Net (loss) attributable to INNOVATE Corp. $ (10.9) Less: Discontinued operations 50.4 Net Income (lo