Innovate Corp. · NYSE:VATE
Innovate — HC2 Holdings — Q3 2019 Earnings Presentation
23 slides from Innovate's earnings presentation, Nov 5, 2019
Slide 1: HC2 Holdings, Inc. Q3 2019 Earnings Release Supplement
HC2 Holdings, Inc. Q3 2019 Earnings Release Supplement November 5, 2019 © HC2 HOLDINGS, INC. 2019
Slide 2: Safe Harbor Disclaimers: Forward-Looking Statements
Safe Harbor Disclaimers Special Note 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 statements. G
Slide 3: Safe Harbor Disclaimers: Non-GAAP Financial Measures
Safe Harbor Disclaimers Non-GAAP Financial Measures In this release, 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 Operating Income an
Slide 4: Third Quarter 2019 Key Highlights
Third Quarter 2019 Key Highlights Marine Services • Announced definitive agreement to sell Huawei Marine Networks to Hengtong Optic-Electric Co Ltd • Global Marine sale process remains robust; received multiple bids Construction • 3Q19 Net Income of $7.0 million; Adjusted EBITDA* of $19.4 million, u
Slide 5: Global Marine Strategic Update
Global Marine Strategic Update Sale of Huawei Marine Networks Joint Venture Announced • Announced signing of agreement with Hengtong Optic-Electric Co Ltd. ("Hengtong") to sell Global Marine Group's equity interest in Huawei Marine Networks Co., Limited ("HMN") – Sale values HMN at $285 million; Glo
Slide 6: HC2 Corporate Overview and Key Financial Metrics
HC2 Corporate HC2 Holdings, Inc. Overview and Key Financial Metrics Priorities • Collateral Coverage Ratio exceeded 2.00x • Complete the sale of HMN JV • $80.3 million in Consolidated Cash (excluding • Continue seeking strategic alternatives for Insurance segment); $7.7 million at Corporate Global M
Slide 7: HC2 Financial Summary
HC2 Financial Summary Selected GAAP Financials (in millions) Three Months Ended September 30, Nine Months Ended September 30, Increase / Increase / 2019 2018 (Decrease) 2019 2018 (Decrease) Net revenue $ 475.7 $ 501.4 $ (25.7) $ 1,485.7 $ 1,451.8 $ 33.9 Total operating expenses 466.1 525.7 (59.6) 1,
Slide 8: HC2 Segment Financial Summary
HC2 Segment Financial Summary Non-GAAP Measures*: Adjusted EBITDA & Pre-tax Insurance AOI (in millions) Three Months Ended September 30, Nine Months Ended September 30, Increase / Increase / 2019 2018 (Decrease) 2019 2018 (Decrease) Core Operating Subsidiaries Construction $ 19.4 $ 15.9 $ 3.5 $ 54.9
Slide 9: Appendix
Appendix © HC2 HOLDINGS, INC. 2019 9
Slide 10: Hybrid, Diversified Long-Term Strategy
Hybrid, Diversified Long-Term Strategy Strong Cash Unlocking Value Driving Growth Flow Generation © HC2 HOLDINGS, INC. 2019 10
Slide 11: Construction: DBM Global, Inc.
Construction DBM Global, Inc. ("DBM") Segment Description Highlights and Near Term Objectives DBM Global offers integrated steel construction services, • Continue integration of GrayWolf Industrial including design-assist, design-build, engineering, BIM participation, 3D steel modeling / detailing,
Slide 12: Marine Services: Global Marine Group
Marine Services Global Marine Group ("GMG") Segment Description Highlights and Recent Developments Global Marine Group is a market leader in providing subsea • Announced signing of agreement with Hengtong cable maintenance, installation and engineering services and operates through thee primary busi
Slide 13: Energy: American Natural Gas, Inc.
Energy American Natural Gas, Inc. ("ANG") Segment Description Highlights and Recent Developments American Natural Gas designs, builds, owns, operates and • In June, completed the acquisition of ampCNG's maintains compressed natural gas ("CNG") fueling stations for transportation. ANG has been buildi
Slide 14: Telecommunication: PTGi-ICS
Telecommunication PTGi-ICS ("ICS") Segment Description Highlights and Near Term Developments PTGi-ICS is an international wholesale telecom service • Continue to focus on maximizing cash flows as company that provides voice and data call termination to the telecom industry worldwide through its own
Slide 15: Insurance: Continental Insurance Group, Ltd.
Insurance Continental Insurance Group, Ltd. ("CIG") Segment Description Highlights and Recent Developments Continental Insurance Group provides long-term care, life, annuity and other accident and health coverage to • Performance since acquisition of Humana's LTC approximately 145,000 individuals. T
Slide 16: Life Sciences: Pansend Life Sciences, LLC
Life Sciences Pansend Life Sciences, LLC R2 Dermatology MediBeacon MediBeacon's Fluorescent Agent Platform** enables R2 Dermatology's two distinct medical devices provide skin physiological function monitoring in critical health applications, lightening and evening to patients using cold technology
Slide 17: Broadcasting: HC2 Broadcasting Holdings Inc.
Broadcasting HC2 Broadcasting Holdings Inc. Segment Description Highlights and Recent Developments Our Broadcasting subsidiary is focused on capitalizing on the • Subsequent to quarter end, completed issuance opportunities to bring valuable content to more viewers over- the-air ("OTA"). The goal of
Slide 18: Non-GAAP Reconciliations
Non-GAAP Reconciliations © HC2 HOLDINGS, INC. 2019 18
Slide 19: Reconciliation to Adjusted EBITDA, Three Months Ended September 30, 2019
Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA (in millions) Three Months Ended September 30, 2019 Core Operating Subsidiaries Early Stage & Other Non- Marine Life Other & operating Total Construction Services Energy Telecom Sciences Broadcasting Elimination Corporate HC2 Net Loss attr
Slide 20: Reconciliation to Adjusted EBITDA, Three Months Ended September 30, 2018
Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA (in millions) Three Months Ended September 30, 2018 Core Operating Subsidiaries Early Stage & Other Non- Marine Life Other & operating Total Construction Services Energy Telecom Sciences Broadcasting Elimination Corporate HC2 Net Income at
Slide 21: Reconciliation to Adjusted EBITDA, Nine Months Ended September 30, 2019
Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA (in millions) Nine Months Ended September 30, 2019 Core Operating Subsidiaries Early Stage & Other Non- Marine Life Other & operating Total Construction Services Energy Telecom Sciences Broadcasting Elimination Corporate HC2 Net Loss attri
Slide 22: Reconciliation to Adjusted EBITDA, Nine Months Ended September 30, 2018
Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA (in millions) Nine Months Ended September 30, 2018 Core Operating Subsidiaries Early Stage & Other Non- Marine Life Other & operating Total Construction Services Energy Telecom Sciences Broadcasting Elimination Corporate HC2 Net Income att
Slide 23: Reconciliation of GAAP Income to Pre-tax Insurance AOI
Reconciliation of U.S. GAAP Income to Pre-tax Insurance AOI (in millions) Three Months Ended September 30, Nine Months Ended September 30, Increase / Increase / 2019 2018 (Decrease) 2019 2018 (Decrease) Net income - Insurance segment $ 10.5 $ 141.1 $ (130.6) $ 74.6 $ 142.9 $ (68.3) Effect of investm