Slide 1: INNOVATE Corp. Q4 2022 Earnings Release Supplement
INNOVATE Corp. Q4 2022 Earnings Release Supplement March 14, 2023 © INNOVATE Corp. 2023
Slide 2: Safe Harbor Disclaimers - 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 press release contains, and certain oral statements made by our representatives from time to time may contain, "forward-looking sta
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: Fourth Quarter and Full Year 2022 Highlights
Fourth Quarter and Full Year 2022 Highlights INNOVATE Delivers Record Results in 2022; Strong Momentum Headed into 2023 (1) ■ Full Year 2022 revenue and Adjusted EBITDA growth of 35.9% and 55.1%, respectively ■ DBM reports 2022 revenue of $1.6 billion, representing 37.5% growth over 2021 levels ■ Me
Slide 5: Segment Highlights
Segment Highlights Infrastructure Highlights Life Sciences Highlights Spectrum Highlights ■ Reported Backlog = $1.8B ■ 4Q22 Adjusted EBITDA(2) of $2.5M ■ Total adjusted backlog(1) = $1.8B ■ R2 has shipped 230 GLACIAL ■ Signed new customers with three ■ Continues to benefit from robust devices global
Slide 6: Q4 2022 Financial Highlights
Q4 2022 Financial Highlights Consolidated Q4 Results Revenue ■ Revenue increased $14.5M or 3.7% driven by our Infrastructure segment, due primarily to increases in ($ millions) 4Q22 4Q21 Infrastructure market demand along with larger projects entering the market. ■ Net Loss attributable to INNOVATE
Slide 7: Segment Highlights - Infrastructure
Segment Highlights - Infrastructure DBM Global ("DBM") Overview Financials ($ millions) 4Q22 4Q21 ■ 3.6% revenue increase driven by increases at Banker Steel and DBMG's commercial structural steel fabrication and erection business Revenue $ 397.3 $ 383.4 as a result of project increases. This was pa
Slide 8: Segment Highlights - Life Sciences
Segment Highlights - Life Sciences Pansend Life Sciences ("Pansend") R2 Technologies MediBeacon ■ R2 has now shipped 230 GLACIAL® devices to customers ■ Completed enrollment of both it’s U.S. and China Pivotal Studies. globally. ■ Next step is to file final submission with the FDA which we expect ■
Slide 9: Segment Highlights - Spectrum
Segment Highlights - Spectrum HC2 Broadcasting ("Broadcasting") Overview Financials ■ Have two stations that broadcast ATSC 3.0 in the Ft. Wayne, Indiana ($ millions) 4Q22 4Q21 DMA. Station Group $ 5.4 $ 5.0 ■ Success of our initial experiment using our LPTV spectrum. ■ Shut-down the operation and b
Slide 10: Current Credit Picture
Current Credit Picture Debt Summary Debt Amortization and Maturity Profile (2) ($ millions) Maturity Dec-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
Slide 11: Appendix: Select GAAP Financials & Non-GAAP Reconciliations
Appendix Select GAAP Financials & Non-GAAP Reconciliations © INNOVATE Corp. 2023
Slide 12: INNOVATE Selected GAAP Financials
INNOVATE Selected GAAP Financials Income Statement (Unaudited) (in millions) Three Months Ended December 31, Years Ended December 31, (1) 2022 2021 2022 2021 Revenue $ 409.3 $ 394.8 $ 1,637.3 $ 1,205.2 Cost of revenue 346.4 333.1 1,415.9 1,021.5 Gross profit 62.9 61.7 221.4 183.7 Operating expenses:
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 December 31, 2022 Non-operating Other and Infrastructure Life Sciences Spectrum Corporate Elimination INNOVATE Net income (loss) attributable to INNOVATE Corp., excluding discontinued operations $ 5.9 $ (4.
Slide 14: Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA
Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA (in millions) Year Ended December 31, 2022 Non-operating Other and Infrastructure Life Sciences Spectrum Corporate Eliminations INNOVATE Net income (loss) attributable to INNOVATE Corp., excluding discontinued operations $ 29.2 $ (19.2) $
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 December 31, 2021 Non-operating Other and Infrastructure Life Sciences Spectrum Corporate Elimination INNOVATE Net income (loss) attributable to INNOVATE Corp., excluding discontinued operations $ 8.6 $ (6.
Slide 16: Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA
Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA (in millions) Year Ended December 31, 2021 Non-operating Other and Infrastructure Life Sciences Spectrum Corporate Eliminations INNOVATE Net loss attributable to INNOVATE Corp. $ (227.5) Less: Discontinued operations (149.9) Net income (lo