Innovate Corp. · NYSE:VATE
Innovate — HC2 Holdings — Q4 2019 Earnings Presentation
21 slides from Innovate's earnings presentation, Mar 16, 2020
Slide 1: HC2 Holdings, Inc. Q4 2019 Earnings Release Supplement
HC2 Holdings, Inc. Q4 2019 Earnings Release Supplement March 16, 2020 © HC2 HOLDINGS, INC. 2020
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 press release 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 release, 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 Operating Income an
Slide 4: 2019 Key Segment Highlights
2019 Key Segment Highlights Marine Services • Signed definitive agreement to sell HMN to HengTong Optics Electric Ltd.; closing expected in 1Q20. • Subsequent to year end, completed the sale of GMG1 to an investment affiliate of J.F. Lehman & Co., LLC. • Combined valuation of Marine Services Segment
Slide 5: Strategic Initiatives Update
Strategic Initiatives Update Delivered on Key 2019 Strategic Initiatives ü Marine Asset Sales ü Debt Reduction TRANSACTIONS VALUED MARINE SALES PROCEEDS BEGIN THE SEGMENT AT $390M PROCESS OF DE-LEVERING Global Marine Group Initial Steps Taken • Completed the sale of GMG (excluding HMN) for $250M, le
Slide 6: Looking Forward
Looking Forward Our objective is to evolve from a highly-leveraged business model to one that unlocks and enhances shareholder value through GROWTH & INNOVATION Building a Solid Platform For Future Growth: Building the largest, most comprehensive, state-of-the-art U.S. over-the-air distribution plat
Slide 7: Broadcasting
Broadcasting HC2 Broadcasting Holdings Inc. Segment Description Highlights and Recent Developments Our Broadcasting subsidiary is focused on capitalizing on the opportunities to bring valuable content to more viewers over- • Significantly decreased Adjusted EBITDA the-air ("OTA"). The goal of our OT
Slide 8: Energy
Energy American Natural Gas, Inc. ("ANG") Segment Description Highlights and Recent Developments American Natural Gas designs, builds, owns, operates and • AFTC1 renewed for 2018-2020; recorded maintains compressed natural gas ("CNG") fueling stations $10.6M of AFTC revenues for 2018 and 2019 for tr
Slide 9: Life Sciences
Life Sciences Pansend Life Sciences, LLC R2 Technologies ("R2") MediBeacon R2's two distinct medical devices provide skin lightening and MediBeacon's Fluorescent Agent Platform2 enables evening to patients using cold technology. physiological function monitoring in critical health applications: • Co
Slide 10: Construction
Construction DBM Global, Inc. ("DBM") Segment Description Highlights and Near Term Objectives DBM Global offers integrated steel construction services, • Process to review strategic options announced including design-assist, design-build, engineering, BIM participation, 3D steel modeling / detailing
Slide 11: HC2 Financial Summary
HC2 Financial Summary Selected GAAP Financials (in millions) Three Months Ended December 31, Twelve Months Ended December 31, Increase / Increase / 2019 2018 (Decrease) 2019 2018 (Decrease) Net revenue $ 498.4 $ 524.9 $ (26.5) $ 1,984.1 $ 1,976.7 $ 7.4 Total operating expenses 531.4 537.1 (5.7) 1,95
Slide 12: HC2 Segment Financial Summary
HC2 Segment Financial Summary Non-GAAP Measures1: Adjusted EBITDA & Pre-tax Insurance AOI (in millions) Three Months Ended December 31, Twelve Months Ended December 31, Increase / Increase / 2019 2018 (Decrease) 2019 2018 (Decrease) Core Operating Subsidiaries Construction $ 20.8 $ 19.4 $ 1.4 $ 75.7
Slide 13: Appendix
Appendix © HC2 HOLDINGS, INC. 2020 13
Slide 14: Telecommunication
Telecommunication PTGi-ICS ("ICS") Segment Description Highlights and Near Term Priorities PTGi-ICS is an international wholesale telecom • Continue to focus on maximizing cash flows service company that provides voice and data call as the international long distance wholesale termination to the tel
Slide 15: Insurance
Insurance Continental Insurance Group, Ltd. ("CIG") Segment Description Highlights and Recent Developments Continental Insurance Group provides long-term care ("LTC"), life, annuity and other accident and health coverage to • Performance since acquisition of Humana's approximately 145,000 individual
Slide 16: Non-GAAP Reconciliations
Non-GAAP Reconciliations © HC2 HOLDINGS, INC. 2020 16
Slide 17: Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA, Year 2019
Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA (in millions) Year ended December 31, 2019 Core Operating Subsidiaries Early Stage & Other Non- Marine Life Other and operating Construction Services Energy Telecom Sciences Broadcasting Elimination Corporate HC2 Net loss attributable to H
Slide 18: Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA, Q4 2019
Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA (in millions) Three Months ended December 31, 2019 Core Operating Subsidiaries Early Stage & Other Non- Marine Life Other and operating Construction Services Energy Telecom Sciences Broadcasting Elimination Corporate HC2 Net loss attributa
Slide 19: Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA, Year 2018
Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA (in millions) Year ended December 31, 2018 Core Operating Subsidiaries Early Stage & Other Non- Marine Life Other and operating Construction Services Energy Telecom Sciences Broadcasting Elimination Corporate HC2 Net Income attributable to
Slide 20: Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA, Q4 2018
Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA (in millions) Three Months ended December 31, 2018 Core Operating Subsidiaries Early Stage & Other Non- Marine Life Other and operating Construction Services Energy Telecom Sciences Broadcasting Elimination Corporate HC2 Net loss attributa
Slide 21: 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 December 31, Year ended December 31, Increase / Inc