Innovate Corp. · NYSE:VATE
Innovate — Q1 2024 Earnings Presentation
14 slides from Innovate's earnings presentation, May 7, 2024
Slide 1: Q1 2024 Earnings Release Supplement
INNOVATE Corp. Q1 2024 Earnings Release Supplement May 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: First Quarter 2024 and Recent Highlights
First Quarter 2024 and Recent Highlights Momentum continues in the first quarter with strong results across three business segments ■ DBM Global delivered first quarter revenue of $307.9 million and expanded gross margin by approximately 150 basis points. ■ R2 Technologies achieved record growth onc
Slide 5: Segment Highlights
Segment Highlights Infrastructure Highlights Life Sciences Highlights Spectrum Highlights ■ Reported backlog of $0.9B and ■ New network launches this year total adjusted backlog(1) of $1.2B are driving higher revenue growth ■ Expanded gross margin and ■ Achieved record growth in North ■ Network dist
Slide 6: Q1 2024 QTD Financial Highlights
Q1 2024 QTD Financial Highlights Consolidated Q1 Results ■ Revenue decreased $2.7M or 0.8% driven by our Infrastructure segment, which was partially offset by increases at our Spectrum and Life Sciences segments. Revenue The decrease at our Infrastructure segment was primarily driven by the timing a
Slide 7: Segment Highlights - Infrastructure
Segment Highlights - Infrastructure DBM Global ("DBM") Overview Financials ($ millions) 1Q24 1Q23 ■ 1.2% revenue decrease driven primarily by the decrease in revenues from the timing and size of projects at DBMG's commercial structural steel Revenue $ 307.9 $ 311.7 fabrication and erection business
Slide 8: Segment Highlights - Life Sciences
Segment Highlights - Life Sciences Pansend Life Sciences ("Pansend") R2 Technologies MediBeacon ■ R2 grew revenue 100% over the prior year quarter. ■ Met with the FDA in the first and second quarter of 2024 and is ■ R2 experienced 183% year-over-year increase in North America working interactively t
Slide 9: Segment Highlights - Spectrum
Segment Highlights - Spectrum HC2 Broadcasting ("Broadcasting") Overview Financials ($ millions) 1Q24 1Q23 ■ Free TV’s January 1st network launches of The 365 and Outlaw and subsequent launch of three new sports networks: Outdoor Revenue $ 6.3 $ 5.7 America, MTRSPT1 and SPEED SPORT TV drive revenue
Slide 10: Current Credit Picture
Current Credit Picture Debt Summary (1) (2) ($ millions) Maturity Mar-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(4) 2025 20.0 20.0 CGIC Unsecured Note(5) 2026 35.1 35.1 Infrastructure Debt Various 159.7 198.8 Sp
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 March 31, 2024 2023 Revenue $ 315.2 $ 317.9 Cost of revenue 266.6 274.3 Gross profit 48.6 43.6 Operating expenses: Selling, general and administrative 39.5 41.7 Depreciation and amortization 4.4 6.3 Other
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 March 31, 2024 Non-Operating Other and Infrastructure Life Sciences Spectrum Corporate Eliminations INNOVATE Net income (loss) attributable to INNOVATE Corp. $ 4.4 $ (4.5) $ (4.8) $ (12.5) $ — $ (17.4) Adju
Slide 14: 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 March 31, 2023 Non-Operating Other and Infrastructure Life Sciences Spectrum Corporate Eliminations INNOVATE Net income (loss) attributable to INNOVATE Corp. $ 2.0 $ (2.8) $ (5.0) $ (11.9) $ 8.7 $ (9.0) Adj