Innovate Corp. · NYSE:VATE
Innovate — HC2 Holdings — Q2 2020 Earnings Presentation
15 slides from Innovate's earnings presentation, Aug 10, 2020
Slide 1: HC2 Holdings, Inc. Q2 2020 Earnings Release Supplement
HC2 Holdings, Inc. Q2 2020 Earnings Release Supplement August 10, 2020 © HC2 HOLDINGS, INC. 2020
Slide 2: Safe Harbor Disclaimers: Cautionary Statement Regarding 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 earnings supplement contains, and certain oral statements made by our representatives from time to time may contain, forward-lookin
Slide 3: Safe Harbor Disclaimers: Non-GAAP Financial Measures
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 (excluding the Insurance segment) and Adjusted
Slide 4: COVID-19: Segment Update
COVID-19: Segment Update How is COVID-19 Impacting Our Segments? Construction Commercial Fabrication and Erection • Certain new project awards still pending release by customers, which could result in a decrease in backlog depending on how long COVID-19 persists. Industrial Maintenance and Repair (G
Slide 5: COVID-19: Segment Update
COVID-19: Segment Update How is COVID-19 Impacting Our Segments? Insurance Telecommunications Continental Insurance PTGi ICS • Reducing portfolio exposure to companies heavily impacted • As an international wholesale telecom service company that by COVID-19 and rotating into high quality corporate b
Slide 6: Q2 2020 Key Highlights
Q2 2020 Key Highlights HC2 Holdco • Completed sale of 30% interest in HMN with net proceeds used to redeem $50.6M of 11.5% Notes. • YTD reduction in HC2 Holdco debt of $127.6M, reducing annual interest expense by ~$15M. • Evaluating portfolio for potential monetization opportunities. Construction •
Slide 7: Strategic Initiatives Update
Strategic Initiatives Update 1 Delivered on Key Strategic Initiatives ✓ Marine Asset Sales & Debt Reduction ✓ Holdco Cost Reductions • Significant decrease in recurring SG&A compared to 2019. Transactions Decrease in Debt Annualized Interest Valued At From Proceeds Savings • Downsizing at our curren
Slide 8: HC2 Financial Summary
HC2 Financial Summary Selected GAAP Financials (in millions, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net revenue $ 377.0 $ 479.2 $ 821.8 $ 928.2 Total operating expenses 372.1 445.6 843.7 869.0 Income (loss) from operations 4.9 33.6 (21.9)
Slide 9: HC2 Segment Financial Summary
HC2 Segment Financial Summary Non-GAAP Measures1: Adjusted EBITDA & Pre-tax Insurance AOI (in millions) Three Months Ended June 30, Six Months Ended June 30, Increase / Increase / 2020 2019 (Decrease) 2020 2019 (Decrease) Core Operating Subsidiaries Construction $ 19.1 $ 23.1 $ (4.0) $ 28.1 $ 35.5 $
Slide 10: Non-GAAP Reconciliations
Non-GAAP Reconciliations © HC2 HOLDINGS, INC. 2020 10
Slide 11: Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA - Three 2020
Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA (in millions) Three Months Ended June 30, 2020 Core Operating Subsidiaries Early Stage & Other Other and Non-operating Construction Energy Telecom Life Sciences Broadcasting Eliminations Corporate HC2 Net income attributable to HC2 Holding
Slide 12: Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA - Six 2020
Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA (in millions) Six Months Ended June 30, 2020 Core Operating Subsidiaries Early Stage & Other Other and Non-operating Construction Energy Telecom Life Sciences Broadcasting Eliminations Corporate HC2 Net loss attributable to HC2 Holdings, I
Slide 13: Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA - Three 2019
Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA (in millions) Three Months Ended June 30, 2019 Core Operating Subsidiaries Early Stage & Other Other and Non-operating Construction Energy Telecom Life Sciences Broadcasting Elimination Corporate HC2 Net income attributable to HC2 Holdings
Slide 14: Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA - Six months 2019
Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA (in millions) Six months ended June 30, 2019 Core Operating Subsidiaries Early Stage & Other Other and Non-operating Construction Energy Telecom Life Sciences Broadcasting Eliminations Corporate HC2 Net income attributable to HC2 Holdings,
Slide 15: Reconciliation of U.S. GAAP Income to Pre-tax Insurance AOI
Reconciliation of U.S. GAAP Income to Pre-tax Insurance AOI The table below shows the adjustments made to the reported Net income (loss) of the Insurance segment to calculate Insurance AOI and Pre-tax Insurance AOI (in millions). Three Months Ended June 30, Six months ended June 30, Increase / Incre