Innovate Corp. · NYSE:VATE
Innovate — HC2 Holdings — Q1 2021 Earnings Presentation
16 slides from Innovate's earnings presentation, May 7, 2021
Slide 1: Q1 2021 Earnings Release Supplement
© HC2 HOLDINGS, INC. 2021 HC2 Holdings, Inc. Q1 2021 Earnings Release Supplement May 7, 2021
Slide 2: Safe Harbor Disclaimers: Forward-Looking Statements
© HC2 HOLDINGS, INC. 2021 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 cont
Slide 3: Safe Harbor Disclaimers: Non-GAAP Financial Measures
© HC2 HOLDINGS, INC. 2021 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, which excludes resu
Slide 4: Full Year 2020 Summary: Reshaping a New HC2
© HC2 HOLDINGS, INC. 2021 Full Year 2020 Summary Reshaping a New HC2 ■ Portfolio coalesces around Infrastructure, Life Sciences and Spectrum ■ Steady financial performance amidst trailing effects of COVID-19 ■ Pending Banker Steel acquisition adds to DBM's infrastructure opportunity ■ Pending Insura
Slide 5: Debt Refinancing and Balance Sheet Initiatives
© HC2 HOLDINGS, INC. 2021 Debt Refinancing Balance Sheet Initiatives Debt Equity ■ Completed refinancing with $330M senior secured note offering ◦ Extended maturity to 2026 ◦ Reduced cost of debt by 300 bps ◦ Repaid $15M revolver in full ■ Extended maturity of ~$52M of senior convertible notes to 20
Slide 6: Pending Acquisition of Banker Steel Company
© HC2 HOLDINGS, INC. 2021 Pending Acquisition of Banker Steel Company Business Description Transaction Overview ■ Founded in 1997, Banker Steel is a full-service structural steel fabricator and erector, based in Lynchburg, VA with approx. 1,600 employees ■ Fabrication facilities in Lynchburg, VA; Or
Slide 7: Pending Sale of Insurance Segment
© HC2 HOLDINGS, INC. 2021 Pending Sale of Insurance Segment ■ Signed Definitive SPA in March 2021, following receipt of an Indication of Interest in December 2020; transaction unanimously approved by HC2’s disinterested Board members ■ Buyer of the segment is Continental General Holdings LLC (1) ■ T
Slide 8: Q1 2021 Financial Highlights
© HC2 HOLDINGS, INC. 2021 Q1 2021 Financial Highlights Revenue ($ millions) 1Q21 1Q20 Infrastructure $ 161.3 $ 176.5 Spectrum 10.5 10.1 Consolidated HC2 $ 171.8 $ 186.6 Non-GAAP Adjusted EBITDA(1) ($ millions) 1Q21 1Q20 Infrastructure $ 11.3 $ 9.0 Life Sciences (6.2) (4.2) Spectrum 0.8 (1.0) Non-ope
Slide 9: Current Credit Picture
© HC2 HOLDINGS, INC. 2021 Current Credit Picture 9 ($ millions) Debt Summary ($ millions) Maturity Mar-21 Dec-20 11.50% Senior Secured Notes 2021 $ — $ 340.4 8.50% Senior Secured Notes 2026 330.0 — 7.50% Convertible Senior Notes 2022 3.2 55.0 7.50% Convertible Senior Notes 2026 51.8 — Line of Credit
Slide 10: Segment Highlights - Infrastructure
© HC2 HOLDINGS, INC. 2021 Financials ($ millions) 1Q21 1Q20 Revenue $ 161.3 $ 176.5 Net Income (Loss) $ — $ (0.1) Adjusted EBITDA (1) $ 11.3 $ 9.0 (1) See Appendix for reconciliation of Non-GAAP to U.S. GAAP. (2) All data as of March 31, 2021 unless otherwise noted. Segment Highlights - Infrastructu
Slide 11: Segment Highlights - Life Sciences
© HC2 HOLDINGS, INC. 2021 ■ R2 is an aesthetic dermatology company that has developed medical devices that provide skin lightening, brightening and evening to patients using cold technology that treat and remove brown spots and lesions on the skin ■ Received third and final $10M staged investment fr
Slide 12: Segment Highlights - Spectrum
© HC2 HOLDINGS, INC. 2021 Financials ($ millions) 1Q21 1Q20 Station Group $ 4.5 $ 3.5 Network ("Azteca") 6.0 6.6 Revenue $ 10.5 $ 10.1 Net Loss $ (4.4) $ (5.5) Adjusted EBITDA (1) $ 0.8 $ (1.0) Segment Highlights - Spectrum HC2 Broadcasting Overview ■ Second consecutive quarter of positive Adjusted
Slide 13: Appendix: Select GAAP Financials & Non-GAAP Reconciliations
© HC2 HOLDINGS, INC. 2021 Appendix Select GAAP Financials & Non-GAAP Reconciliations
Slide 14: HC2 Selected GAAP Financials
© HC2 HOLDINGS, INC. 2021 HC2 Selected GAAP Financials Income Statement - Unaudited (in millions) Three Months Ended March 31, 2021 2020 Revenue $ 171.8 $ 186.6 Cost of revenue 141.3 156.8 Gross Profit 30.5 29.8 Operating expenses: Selling, general and administrative 37.1 38.9 Depreciation and amort
Slide 15: Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA
© HC2 HOLDINGS, INC. 2021 Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA 15 (in millions) Three months ended March 31, 2021 Infrastructure Life Sciences Spectrum Non-operating Corporate Other and Eliminations HC2 Net Income (loss) attributable to HC2 Holdings, Inc. $ 12.6 Less: Discont
Slide 16: Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA
© HC2 HOLDINGS, INC. 2021 Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA (in millions) Three months ended March 31, 2020 Infrastructure Life Sciences Spectrum Non-operating Corporate Other and Eliminations HC2 Net Income (loss) attributable to HC2 Holdings, Inc. $ (83.1) Less: Disconti