Innovate Corp. · NYSE:VATE
Innovate — Q3 2023 Earnings Presentation
16 slides from Innovate's earnings presentation, Nov 9, 2023
Slide 1: Q3 2023 Earnings Release Supplement
INNOVATE Corp. Q3 2023 Earnings Release Supplement November 9, 2023 INNOVATE 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 Total Adjusted EBITDA (excluding discontinued operations,
Slide 4: Third Quarter 2023 Highlights
Third Quarter 2023 Highlights DBM continues to improve profitability while Pansend and Spectrum continue to make progress in each respective business segment. ■ DBM Global delivered third quarter revenue of $369.3 million and expanded gross margin and Adjusted EBITDA margin by approximately 210 and
Slide 5: Segment Highlights
Segment Highlights Infrastructure Highlights Life Sciences Highlights Spectrum Highlights ■ Reported Backlog and Total ■ Focus on repurposing spectrum to Adjusted Backlog(1)= $1.3B maximize revenue opportunities ■ Continues to expand margins over ■ R2 has shipped 304 Glacial® ■ Working closely with
Slide 6: Q3 2023 QTD Financial Highlights
Q3 2023 QTD Financial Highlights Consolidated Q3 Results ■ Revenue decreased $47.7M or 11.3% driven by our Infrastructure segment, and, to a lesser extent, our Spectrum segment. The decline at our Revenue Infrastructure segment was driven by timing and size of projects, mostly from DBMG's commercial
Slide 7: Segment Highlights - Infrastructure
Segment Highlights - Infrastructure DBM Global ("DBM") Overview Financials ($ millions) 3Q23 3Q22 ■ 10.5% revenue decrease driven by the timing and size of projects at DBMG's commercial structural steel fabrication and erection business Revenue $ 369.3 $ 412.7 and lower revenue at the industrial mai
Slide 8: Segment Highlights - Life Sciences
Segment Highlights - Life Sciences Pansend Life Sciences ("Pansend") R2 Technologies MediBeacon ■ R2 has now shipped 304 Glacial® devices to customers globally. ■ Continues to work through regulatory approval with the FDA ■ Commercially launched Glacial® fx, a new skin wellness device. ■ Submitted T
Slide 9: Segment Highlights - Spectrum
Segment Highlights - Spectrum HC2 Broadcasting ("Broadcasting") Overview Financials ■ Partnering with Hewlett Packard Enterprise (HPE), one of the leaders ($ millions) 3Q23 3Q22 in data transmission architecture, to deploy datacasting Station Group $ 5.4 $ 4.7 ■ Finalizing operating and revenue shar
Slide 10: Current Credit Picture
Current Credit Picture Debt Summary (1) Debt Amortization and Maturity Profile (2) ($ millions) Maturity Sep-23 Dec-22 $600.0 ($ millions) 8.50% Senior Secured Notes 2026 $ 330.0 $ 330.0 $494.9 7.50% Convertible Senior Notes 2026 51.8 51.8 $500.0 Line of Credit 2025 20.0 20.0 $400.0 9.00% Unsecured
Slide 11: Appendix
Appendix Select GAAP Financials & Non-GAAP Reconciliations INNOVATE Corp. ™ 2023
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, 2023 2022 2023 2022 Revenue $ 375.3 $ 423.0 $ 1,062.0 $ 1,228.0 Cost of revenue 316.6 364.6 907.1 1,069.5 Gross profit 58.7 58.4 154.9 158.5 Operating expense
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, 2023 Non-operating Other and Infrastructure Life Sciences Spectrum Corporate Eliminations INNOVATE Net income (loss) attributable to INNOVATE Corp. $ 10.8 $ (3.6) $ (6.5) $ (7.7) $ — $ (7.0) A
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, 2023 Non-operating Other and Infrastructure Life Sciences Spectrum Corporate Eliminations INNOVATE Net income (loss) attributable to INNOVATE Corp. $ 19.8 $ (9.3) $ (16.8) $ (27.8) $ 8.2 $ (25.
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, 2022 Non-operating Other and Infrastructure Life Sciences Spectrum Corporate Eliminations INNOVATE Net income (loss) attributable to INNOVATE Corp. $ 10.4 $ (5.5) $ (1.4) $ (9.6) $ 0.7 $ (5.4)
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, 2022 Non-operating Other and Infrastructure Life Sciences Spectrum Corporate Eliminations INNOVATE Net income (loss) attributable to INNOVATE Corp. $ 23.3 $ (14.9) $ (10.5) $ (30.4) $ 2.3 $ (30