Innovate Corp. · NYSE:VATE
Innovate — Q3 2022 Earnings Presentation
16 slides from Innovate's earnings presentation, Nov 2, 2022
Slide 1: INNOVATE Corp. Q3 2022 Earnings Release Supplement
INNOVATE Corp. Q3 2022 Earnings Release Supplement November 2, 2022 © INNOVATE Corp. 2022
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 Adjusted EBITDA, which excludes results for discontinued
Slide 4: Third Quarter 2022 Highlights
Third Quarter 2022 Highlights Achieved top line and adjusted EBITDA growth driven by operational execution in DBM Global (1) ■ Third Quarter 2022 revenue and Adjusted EBITDA growth of 7.1% and 14.7%, respectively ■ DBM delivered 7.8% growth in revenue, expanded margin while growing backlog to $1.9 b
Slide 5: Segment Highlights
Segment Highlights Infrastructure Highlights Life Sciences Highlights Spectrum Highlights ■ Reported Backlog = $1.9B ■ 3Q22 Adjusted EBITDA(2) of $0.3M ■ Total adjusted backlog(1) = $2.2B ■ R2 has shipped 215 GLACIAL ■ Discontinuing operation and ■ Converting backlog to revenue devices globally in 2
Slide 6: Q3 2022 Financial Highlights
Q3 2022 Financial Highlights Revenue Consolidated Q3 Results ■ Revenue increased $28.2M or 7.1% driven by our Infrastructure segment, due primarily to increases in ($ millions) 3Q22 3Q21 Infrastructure market demand along with larger projects entering the market. Infrastructure $ 412.7 $ 383.0 ■ Net
Slide 7: Segment Highlights - Infrastructure
Segment Highlights - Infrastructure DBM Global ("DBM") Overview Financials ($ millions) 3Q22 3Q21 ■ 7.8% revenue increase due to an increase at Banker Steel and DBMG's commercial structural steel fabrication and erection business. Revenue $ 412.7 $ 383.0 This was partially offset by decreases at the
Slide 8: Segment Highlights - Life Sciences
Segment Highlights - Life Sciences Pansend Life Sciences ("Pansend") R2 Technologies MediBeacon ■ R2 has now shipped 215 GLACIAL® devices to customers ■ Transdermal GFR Measurement System (TGFR) FDA Pivotal globally Study remains on track ■ Implemented new subscription sales program designed to fuel
Slide 9: Segment Highlights - Spectrum
Segment Highlights - Spectrum HC2 Broadcasting ("Broadcasting") Overview Financials ■ Completed the upgrade to ATSC 3.0 of two of our Ft. Wayne, Indiana ($ millions) 3Q22 3Q21 stations. This upgrade is in conjunction with the FCC Experimental Station Group $ 4.7 $ 4.7 Special Temporary Authority (“S
Slide 10: Current Credit Picture
Current Credit Picture Debt Summary Debt Amortization and Maturity Profile (3) ($ millions) Maturity Sep-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. 2022
Slide 12: INNOVATE Selected GAAP Financials
INNOVATE Selected GAAP Financials Income Statement - Unaudited (in millions) Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Revenue $ 423.0 $ 394.8 $ 1,228.0 $ 810.4 Cost of revenue 364.6 339.7 1,069.5 688.4 Gross profit 58.4 55.1 158.5 122.0 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 September 30, 2022 Non-operating Other and Infrastructure Life Sciences Spectrum Corporate Elimination INNOVATE Net (loss) attributable to INNOVATE Corp. $ (5.4) Less: Discontinued operations — Net Income (
Slide 14: Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA
Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA (in millions) Nine Months Ended September 30, 2022 Non-operating Other and Infrastructure Life Sciences Spectrum Corporate Eliminations INNOVATE Net (loss) attributable to INNOVATE Corp. $ (30.2) Less: Discontinued operations — Net Income
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 September 30, 2021 Non-operating Other and Infrastructure Life Sciences Spectrum Corporate Elimination INNOVATE Net (loss) attributable to INNOVATE Corp. $ (211.9) Less: Discontinued operations (200.3) Net
Slide 16: Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA
Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA (in millions) Nine Months Ended September 30, 2021 Non-operating Other and Infrastructure Life Sciences Spectrum Corporate Eliminations INNOVATE Net (loss) attributable to INNOVATE Corp. $ (222.8) Less: Discontinued operations (149.9) Net