Innovate Corp. · NYSE:VATE
Innovate — Q3 2024 Earnings Presentation
16 slides from Innovate's earnings presentation, Nov 6, 2024
Slide 1: INNOVATE Corp. Q3 2024 Earnings Release Supplement
INNOVATE Corp. Q3 2024 Earnings Release Supplement November 6, 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: Third Quarter 2024 and Recent Highlights
Third Quarter 2024 and Recent Highlights DBM results highlighted by margin performance; R2 experiences strong unit sales growth; Spectrum delivers strong top and bottom line results ■ DBM Global Inc. ("DBM Global") delivered solid results in the third quarter, achieving net income attributable to IN
Slide 5: Segment Highlights
Segment Highlights Infrastructure Highlights Life Sciences Highlights Spectrum Highlights ■ Reported backlog of $0.9B and ■ New network launches and total adjusted backlog(1) of $1.1B. expanded coverage with existing ■ Sequential increase in total ■ Achieved a 247% increase in customers drove top li
Slide 6: Q3 2024 QTD Financial Highlights
Q3 2024 QTD Financial Highlights Consolidated Q3 Results ■ Revenue decreased $133.1M or 35.5% driven by our Infrastructure segment, which was partially offset by increases at our Life Sciences and Spectrum Revenue segments. The decrease at our Infrastructure segment was primarily driven by the timin
Slide 7: Segment Highlights - Infrastructure
Segment Highlights - Infrastructure DBM Global ("DBM") Overview Financials ($ millions) 3Q24 3Q23 ■ 37.0% revenue decrease primarily driven by the timing and size of projects, including the effect of changes in estimated costs to complete those projects recognized in the ordinary course of business,
Slide 8: Segment Highlights - Life Sciences
Segment Highlights - Life Sciences Pansend Life Sciences ("Pansend") R2 Technologies MediBeacon(2) ■ R2 grew revenue 400% over the prior year quarter. ■ MediBeacon continues to work with the FDA as they conduct their ■ R2 experienced system unit sales growth of 247% over the prior substantive review
Slide 9: Segment Highlights - Spectrum
Segment Highlights - Spectrum HC2 Broadcasting ("Broadcasting") Overview Financials ($ millions) 3Q24 3Q23 ■ Strong financial results driven by the launch of new networks and expanded coverage with existing customers. Revenue $ 6.4 $ 5.4 ■ Third quarter and year-to-date Adjusted EBITDA experienced s
Slide 10: Current Credit Picture
Current Credit Picture Debt Summary (1) Debt Amortization and Maturity Profile (2) ($ millions) Maturity Sep-24 Dec-23 $600.0 ($ millions) 8.50% Senior Secured Notes 2026 $ 330.0 $ 330.0 $501.0 7.50% Convertible Senior Notes 2026 48.9 51.8 $500.0 Line of Credit 2025 20.0 20.0 $400.0 CGIC Unsecured N
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 September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Revenue $ 242.2 $ 375.3 $ 870.5 $ 1,062.0 Cost of revenue 194.0 316.6 708.1 907.1 Gross profit 48.2 58.7 162.4 154.9 Operating expenses: S
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, 2024 Non-Operating Other and Infrastructure Life Sciences Spectrum Corporate Eliminations INNOVATE Net income (loss) attributable to INNOVATE Corp. $ 6.2 $ (6.0) $ (5.6) $ (9.6) $ — $ (15.0) 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, 2024 Non-Operating Other and Infrastructure Life Sciences Spectrum Corporate Eliminations INNOVATE Net income (loss) attributable to INNOVATE Corp. $ 31.6 $ (14.3) $ (15.4) $ (20.0) $ 0.1 $ (18
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, 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 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, 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.