Innovate Corp. · NYSE:VATE
Innovate — Q1 2023 Earnings Presentation
14 slides from Innovate's earnings presentation, May 10, 2023
Slide 1: INNOVATE Corp. Q1 2023 Earnings Release Supplement
INNOVATE Corp. Q1 2023 Earnings Release Supplement May 10, 2023 © INNO VATE 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 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: First Quarter 2023 and Recent Highlights
First Quarter 2023 and Recent Highlights Solid Momentum to Start 2023 with a Focus on Execution and Profitability for the Balance of the Year ■ DBM Global delivered first quarter revenue of $311.7 million. ■ R2 announced three new FDA clearances. ■ MediBeacon's final regulatory submission is anticip
Slide 5: Segment Highlights
Segment Highlights Infrastructure Highlights Life Sciences Highlights Spectrum Highlights ■ Reported Backlog = $1.6B ■ 1Q23 Adjusted EBITDA of $0.4M (2) ■ Total adjusted backlog = $1.7B (1) ■ R2 has shipped 273 GLACIAL ■ New customer programming has ■ Expect margins to improve over devices globally
Slide 6: Q1 2023 Financial Highlights
Q1 2023 Financial Highlights Consolidated Q1 Results Revenue ■ Revenue decreased $94.9M or 23.0% driven by our Infrastructure segment, and, to a lesser extent our Spectrum segment. DBMG's commercial structural steel fabrication and erection and industrial maintenance and repair businesses encountere
Slide 7: Segment Highlights - Infrastructure
Segment Highlights - Infrastructure DBM Global ("DBM") Overview Financials ($ millions) 1Q23 1Q22 ■ 22.5% revenue decrease driven by timing of projects at DBMG's commercial structural steel fabrication and erection and industrial maintenance and repair businesses, both of which encountered customer
Slide 8: Segment Highlights - Life Sciences
Segment Highlights - Life Sciences Pansend Life Sciences ("Pansend") R2 Technologies MediBeacon ■ R2 has now shipped 273 GLACIAL® devices to customers ■ Final reconciliations and audits being completed in preparation of globally. the Clinical Study Report for FDA regulatory submission. ■ Announced t
Slide 9: Segment Highlights - Spectrum
Segment Highlights - Spectrum HC2 Broadcasting ("Broadcasting") Overview Financials ($ millions) 1Q23 1Q22 ■ Launched new network programming, Law & Crime, a popular live trial network founded by Dan Abrams of ABC News, previously available Station Group $ 5.4 $ 4.8 only on cable. ■ Success of our i
Slide 10: Current Credit Picture: Debt Summary
Current Credit Picture Debt Summary (1)(5) (2) ($ millions) Maturity Mar-23 Dec-22 ($ millions) 8.50% Senior Secured Notes 2026 $ 330.0 $ 330.0 7.50% Convertible Senior Notes 2026 51.8 51.8 Line of Credit(3) 2025 5.0 20.0 Infrastructure Debt Various 237.0 243.0 Spectrum Debt 2024 69.7 69.7 Life Scie
Slide 11: Appendix: Select GAAP Financials & Non-GAAP Reconciliations
Appendix Select GAAP Financials & Non-GAAP Reconciliations © INNO VATE Corp. 2023
Slide 12: INNOVATE Selected GAAP Financials
INNOVATE Selected GAAP Financials Income Statement - Unaudited (in millions) Three Months Ended March 31, 2023 2022 Revenue $ 317.9 $ 412.8 Cost of revenue 274.3 363.0 Gross profit 43.6 49.8 Operating expenses: Selling, general and administrative 41.7 42.6 Depreciation and amortization 6.3 6.9 Other
Slide 13: Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA (Q1 2023)
Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA (in millions) Three Months Ended March 31, 2023 Non-operating Other and Infrastructure Life Sciences Spectrum Corporate Eliminations INNOVATE Net income (loss) attributable to INNOVATE Corp. $ 2.0 $ (2.8) $ (5.0) $ (11.9) $ 8.7 $ (9.0) Adj
Slide 14: Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA (Q1 2022)
Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA (in millions) Three Months Ended March 31, 2022 Non-operating Other and Infrastructure Life Sciences Spectrum Corporate Eliminations INNOVATE Net income (loss) attributable to INNOVATE Corp. $ 6.1 $ (4.1) $ (3.4) $ (11.3) $ 0.3 $ (12.4) Ad