Innovate Corp. · NYSE:VATE
Innovate — HC2 Holdings — Q2 2021 Earnings Presentation
16 slides from Innovate's earnings presentation, Aug 6, 2021
Slide 1: Q2 2021 Earnings Release Supplement
© HC2 HOLDINGS, INC. 2021 HC2 Holdings, Inc. Q2 2021 Earnings Release Supplement August 6, 2021
Slide 2: Safe Harbor Disclaimers: Forward-Looking Statements
© HC2 HOLDINGS, INC. 2021 Safe Harbor Disclaimers 2 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 co
Slide 3: Safe Harbor Disclaimers: Non-GAAP Financial Measures
© HC2 HOLDINGS, INC. 2021 Safe Harbor Disclaimers 3 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, which excludes re
Slide 4: Second Quarter 2021 Summary
© HC2 HOLDINGS, INC. 2021 Second Quarter 2021 Summary Continued Progress Executing our Strategy with Momentum into 2H 2021 4 ■ Accomplished near-term goals: ■ Completed the acquisition of Banker Steel ■ Closed the divestiture of Continental Insurance ■ DBM entered into a new credit agreement ■ Fully
Slide 5: Segment Highlights
© HC2 HOLDINGS, INC. 2021 Segment Highlights Infrastructure Highlights Life Sciences Highlights Spectrum Highlights ■ Reported Backlog = $1,634M ■ Acquisition of Banker Steel doubles the size of our backlog Legacy DBM adjusted backlog = $988M Banker Steel adjusted backlog = $911M Total adjusted back
Slide 6: Q2 2021 Financial Highlights
© HC2 HOLDINGS, INC. 2021 Q2 2021 Financial Highlights Revenue ($ millions) 2Q21 2Q20 Infrastructure $ 232.0 $ 172.3 Life Sciences 1.2 — Spectrum 10.6 9.5 Consolidated HC2 $ 243.8 $ 181.8 Non-GAAP Adjusted EBITDA(1) ($ millions) 2Q21 2Q20 Infrastructure $ 13.9 $ 19.1 Life Sciences (6.1) (4.5) Spectr
Slide 7: Current Credit Picture
© HC2 HOLDINGS, INC. 2021 (1) Borrowing rate on Line of Credit reduced from LIBOR plus 6.75% to LIBOR plus 5.75% in February 2021. (2) Excludes cash included in Discontinued Operations. (3) Debt Maturity Profile excludes Preferred Stock and capital leases (4) Infrastructure Line of Credit reflects m
Slide 8: Segment Highlights - Infrastructure
© HC2 HOLDINGS, INC. 2021 ■ 34.6% revenue increase due to the acquisition of Banker Steel as well as higher revenues across DBM's service offering ■ Adjusted EBITDA decrease was driven by the timing of project work under execution and the change in backlog mix, including the impact of market pressur
Slide 9: Segment Highlights - Life Sciences
© HC2 HOLDINGS, INC. 2021 MediBeaconR2 Technologies (1) Investment-to-date totals and equity ownership percentages are as of June 30, 2021, except for R2, which includes $15M investment in July; fully diluted includes all exercisable options and warrants. (2) MediBeacon agents and devices are not ap
Slide 10: Segment Highlights - Spectrum
© HC2 HOLDINGS, INC. 2021 Financials ($ millions) 2Q21 2Q20 Station Group $ 4.6 $ 3.8 Network ("Azteca") 6.0 5.7 Revenue $ 10.6 $ 9.5 Net Loss $ (1.1) $ (3.7) Adjusted EBITDA (1) $ 2.7 $ (1.2) 10 Segment Highlights - Spectrum HC2 Broadcasting 212 45 227 Central Cast Integrated Operating Stations 4Q1
Slide 11: Appendix: Select GAAP Financials & Non-GAAP Reconciliations
© HC2 HOLDINGS, INC. 2021 Appendix Select GAAP Financials & Non-GAAP Reconciliations 11
Slide 12: HC2 Selected GAAP Financials
© HC2 HOLDINGS, INC. 2021 HC2 Selected GAAP Financials Income Statement - Unaudited (in millions) Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 2021 2020 2021 2020 Revenue $ 243.8 $ 181.8 $ 415.6 $ 368.4 Cost of revenue 207.4 152.1 348.7 308.9 Gross profit 36.4 29.7 66.9 59.5 Opera
Slide 13: Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA
© HC2 HOLDINGS, INC. 2021 Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA 13 (in millions) Three months ended June 30, 2021 Infrastructure Life Sciences Spectrum Non-operating Corporate Other and Eliminations HC2 Net (loss) attributable to HC2 Holdings, Inc. $ (23.5) Less: Discontinued
Slide 14: Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA
© HC2 HOLDINGS, INC. 2021 Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA 14 (in millions) Six months ended June 30, 2021 Infrastructure Life Sciences Spectrum Non-operating Corporate Other and Eliminations HC2 Net (loss) attributable to HC2 Holdings, Inc. $ (10.9) Less: Discontinued op
Slide 15: Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA
© HC2 HOLDINGS, INC. 2021 Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA 15 (in millions) Three months ended June 30, 2020 Infrastructure Life Sciences Spectrum Non-operating Corporate Other and Eliminations HC2 Net income attributable to HC2 Holdings, Inc. $ 13.1 Less: Discontinued op
Slide 16: Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA
© HC2 HOLDINGS, INC. 2021 Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA 16 (in millions) Six months ended June 30, 2020 Infrastructure Life Sciences Spectrum Non-operating Corporate Other and Eliminations HC2 Net (loss) attributable to HC2 Holdings, Inc. $ (70.0) Less: Discontinued op