Slide 1: INNOVATE Corp. Q2 2024 Earnings Release Supplement
INNOVATE Corp. Q2 2024 Earnings Release Supplement August 7, 2024 INNOVATE Corp. ™ 2024
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: Second Quarter 2024 and Recent Highlights
Second Quarter 2024 and Recent Highlights Strong performance across all three operating segments drove earnings results in the second quarter. ■ DBM Global Inc. ("DBM Global") delivered strong year-over-year growth in the second quarter, achieving net income attributable to INNOVATE Corp. of $21.0 m
Slide 5: Segment Highlights
Segment Highlights Infrastructure Highlights Life Sciences Highlights Spectrum Highlights ■ Reported backlog of $0.8B and ■ New network launches and total adjusted backlog(1) of $1.0B. continued cost-cutting efforts ■ Expanded gross margin and ■ Achieved a 200% increase in drove growth in the quarte
Slide 6: Q2 2024 QTD Financial Highlights
Q2 2024 QTD Financial Highlights Consolidated Q2 Results ■ Revenue decreased $55.7M or 15.1% driven by our Infrastructure segment, which was partially offset by increases at our Life Sciences and Spectrum Revenue segments. The decrease at our Infrastructure segment was primarily driven by the timing
Slide 7: Segment Highlights - Infrastructure
Segment Highlights - Infrastructure DBM Global ("DBM") Overview Financials ($ millions) 2Q24 2Q23 ■ 15.8% revenue decrease driven by the timing and size of projects at Banker Steel and DBMG's commercial structural steel fabrication and erection business, Revenue $ 305.2 $ 362.4 both of which had inc
Slide 8: Segment Highlights - Life Sciences
Segment Highlights - Life Sciences Pansend Life Sciences ("Pansend") R2 Technologies MediBeacon(2) ■ R2 grew revenue 143% over the prior year quarter. ■ MediBeacon continues to work through their substantive review of ■ R2 experienced 200% year-over-year increase in North America the kidney monitori
Slide 9: Segment Highlights - Spectrum
Segment Highlights - Spectrum HC2 Broadcasting ("Broadcasting") Overview Financials ($ millions) 2Q24 2Q23 ■ Free TV launched their third network, Defy, with HC2 providing broadcast distribution across 60% of the U.S. Launched new Revenue $ 6.2 $ 5.7 channels Salem Media and First TV. ■ Continues to
Slide 10: Current Credit Picture
Current Credit Picture Debt Summary (1) (2) ($ millions) Maturity Jun-24 Dec-23 ($ millions) 8.50% Senior Secured Notes 2026 $ 330.0 $ 330.0 7.50% Convertible Senior Notes 2026 51.8 51.8 Line of Credit 2025 20.0 20.0 CGIC Unsecured Note 2026 31.0 35.1 Infrastructure Debt Various 173.8 198.8 Spectrum
Slide 11: Appendix: Select GAAP Financials & Non-GAAP Reconciliations
Appendix Select GAAP Financials & Non-GAAP Reconciliations INNOVATE Corp. ™ 2024
Slide 12: INNOVATE Selected GAAP Financials
INNOVATE Selected GAAP Financials Income Statement - Unaudited (in millions) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Revenue $ 313.1 $ 368.8 $ 628.3 $ 686.7 Cost of revenue 247.5 316.2 514.1 590.5 Gross profit 65.6 52.6 114.2 96.2 Operating expenses: Selling, genera
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 June 30, 2024 Non-Operating Other and Infrastructure Life Sciences Spectrum Corporate Eliminations INNOVATE Net income (loss) attributable to INNOVATE Corp. $ 21.0 $ (3.8) $ (5.0) $ 2.1 $ 0.1 $ 14.4 Adjustm
Slide 14: Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA
Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA (in millions) Six Months Ended June 30, 2024 Non-Operating Other and Infrastructure Life Sciences Spectrum Corporate Eliminations INNOVATE Net income (loss) attributable to INNOVATE Corp. $ 25.4 $ (8.3) $ (9.8) $ (10.4) $ 0.1 $ (3.0) Adjus
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 June 30, 2023 Non-Operating Other and Infrastructure Life Sciences Spectrum Corporate Eliminations INNOVATE Net income (loss) attributable to INNOVATE Corp. $ 7.0 $ (2.9) $ (5.3) $ (8.2) $ (0.5) $ (9.9) Adj
Slide 16: Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA
Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA (in millions) Six Months Ended June 30, 2023 Non-Operating Other and Infrastructure Life Sciences Spectrum Corporate Eliminations INNOVATE Net income (loss) attributable to INNOVATE Corp. $ 9.0 $ (5.7) $ (10.3) $ (20.1) $ 8.2 $ (18.9) Adju