Innovate Corp. · NYSE:VATE
Innovate — Q4 2023 Earnings Presentation
16 slides from Innovate's earnings presentation, Mar 4, 2024
Slide 1: INNOVATE Corp. Q4 2023 Earnings Release Supplement
INNOVATE Corp. Q4 2023 Earnings Release Supplement March 4, 2024 INNOVATE Corp. ™ 2024
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 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 Total Adjusted EBITDA (excluding discontinued operations,
Slide 4: Fourth Quarter and Full Year 2023 Highlights
Fourth Quarter and Full Year 2023 Highlights Strong Finish to 2023; Business Segments are Well-Positioned for Execution of Strategic Initiatives in 2024 ■ DBM Global delivered fourth quarter revenue of $353.8 million and significantly expanded gross margin by approximately 200 basis points. ■ R2 Tec
Slide 5: Segment Highlights
Segment Highlights Infrastructure Highlights Life Sciences Highlights Spectrum Highlights ■ Reported backlog of $1.1B and ■ New network launches across the total adjusted backlog(1) of $1.2B platform ■ Expanded gross margins over the ■ Achieved record growth in North ■ Entered into agreements with P
Slide 6: Q4 2023 QTD Financial Highlights
Q4 2023 QTD Financial Highlights Consolidated Q4 Results ■ Revenue decreased $48.3M or 11.8% driven by our Infrastructure segment, and, to a lesser extent, our Spectrum segment. The decline at our Revenue Infrastructure segment was driven by timing and size of projects, mostly from DBMG's commercial
Slide 7: Segment Highlights - Infrastructure
Segment Highlights - Infrastructure DBM Global ("DBM") Overview Financials ($ millions) 4Q23 4Q22 ■ 10.9% revenue decrease driven primarily by the timing and size of projects at DBMG's commercial structural steel fabrication and Revenue $ 353.8 $ 397.3 erection business which was partially offset by
Slide 8: Segment Highlights - Life Sciences
Segment Highlights - Life Sciences Pansend Life Sciences ("Pansend") R2 Technologies MediBeacon ■ R2 experienced 76% sequential growth and 111% full year-over- ■ Continues to work through regulatory approval with the FDA. Met year growth in North America system sales. with the FDA in the first quart
Slide 9: Segment Highlights - Spectrum
Segment Highlights - Spectrum HC2 Broadcasting ("Broadcasting") Overview Financials ($ millions) 4Q23 4Q22 ■ Gaining considerable traction with sizeable network launches which include FreeTV and three large sports Station Group $ 5.7 $ 5.4 networks. Network ("Azteca") — 5.3 ■ Entering into agreement
Slide 10: Current Credit Picture
Current Credit Picture Debt Summary (1) Debt Amortization and Maturity Profile (2) ($ millions) Maturity Dec-23 Dec-22 $600.0 ($ millions) 8.50% Senior Secured Notes 2026 $ 330.0 $ 330.0 $494.9 7.50% Convertible Senior Notes 2026 51.8 51.8 $500.0 Line of Credit 2025 20.0 20.0 $400.0 CGIC Unsecured N
Slide 11: Appendix: Select GAAP Financials & Non-GAAP Reconciliations
Appendix Select GAAP Financials & Non-GAAP Reconciliations INNOVATE Corp. ™ 2024
Slide 12: INNOVATE Selected GAAP Financials
INNOVATE Selected GAAP Financials Income Statement (Unaudited) (Unaudited) (in millions) Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 Revenue $ 361.0 $ 409.3 $ 1,423.0 $ 1,637.3 Cost of revenue 299.9 346.4 1,207.0 1,415.9 Gross profit 61.1 62.9 216.0 221.4 Operating ex
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, 2023 Non-Operating Other and Infrastructure Life Sciences Spectrum Corporate Eliminations INNOVATE Net income (loss) attributable to INNOVATE Corp. $ 8.9 $ (6.2) $ (5.4) $ (5.4) $ (1.2) $ (9.3)
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, 2023 Non-Operating Other and Infrastructure Life Sciences Spectrum Corporate Eliminations INNOVATE Net income (loss) attributable to INNOVATE Corp. $ 28.7 $ (15.5) $ (22.2) $ (33.2) $ 7.0 $ (35.2) Adju
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, 2022 Non-Operating Other and Infrastructure Life Sciences Spectrum Corporate Eliminations INNOVATE Net income (loss) attributable to INNOVATE Corp. $ 5.9 $ (4.3) $ (2.8) $ (4.9) $ 0.4 $ (5.7) A
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, 2022 Non-Operating Other and Infrastructure Life Sciences Spectrum Corporate Eliminations INNOVATE Net income (loss) attributable to INNOVATE Corp. $ 29.2 $ (19.2) $ (13.3) $ (35.3) $ 2.7 $ (35.9) Adju