Slide 1: INNOVATE Corp. Q2 2023 Earnings Release Supplement
INNOVATE Corp. Q2 2023 Earnings Release Supplement August 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 Adjusted EBITDA, which excludes results for discontinued
Slide 4: Second Quarter 2023
Second Quarter 2023 Remain focused on increasing profitability across the business while driving growth ■ DBM Global delivered second quarter revenue of $362.4 million and expanded gross margin and Adjusted EBITDA margin by approximately 160 and 100 basis points year-over-year, respectively. ■ R2 Te
Slide 5: Segment Highlights
Segment Highlights Infrastructure Highlights Life Sciences Highlights Spectrum Highlights ■ Reported Backlog and Total ■ 2Q23 Adjusted EBITDA(2) of Adjusted Backlog(1)= $1.5B $0.8M, doubling adjusted EBITDA ■ Delivering expanded margins over ■ R2 has shipped 284 GLACIAL® compared to second quarter 2
Slide 6: Q2 2023 Financial Highlights
Q2 2023 Financial Highlights Consolidated Q2 Results Revenue ■ Revenue decreased $23.4M or 6.0% driven by our Infrastructure segment, and, to a lesser extent, our Spectrum segment. The decline ($ millions) 2Q23 2Q22 at the Infrastructure segment was driven the timing of projects at DBMG's commercial
Slide 7: Segment Highlights - Infrastructure
Segment Highlights - Infrastructure DBM Global ("DBM") Overview Financials ($ millions) 2Q23 2Q22 ■ 5.2% revenue decrease driven by the timing and size of projects at DBMG's commercial structural steel fabrication and erection business Revenue $ 362.4 $ 382.1 and lower revenue at the industrial main
Slide 8: Segment Highlights - Life Sciences
Segment Highlights - Life Sciences Pansend Life Sciences ("Pansend") R2 Technologies MediBeacon ■ R2 has now shipped 284 GLACIAL® devices to customers globally. ■ Completed the Phase 3 Transdermal GFR Pivotal Study and filed the Clinical ■ Utilization and social media presence have experienced notab
Slide 9: Segment Highlights - Spectrum
Segment Highlights - Spectrum HC2 Broadcasting ("Broadcasting") Overview Financials ■ Diginets experiencing falling ad dollars though seeing signs of market ($ millions) 2Q23 2Q22 stabilization in the second quarter. Station Group $ 5.7 $ 4.7 ■ New business opportunities emerging in religious networ
Slide 10: Current Credit Picture
Current Credit Picture Debt Summary (1) Debt Amortization and Maturity Profile (2) ($ millions) Maturity Jun-23 Dec-22 $600.0 ($ millions) 8.50% Senior Secured Notes 2026 $ 330.0 $ 330.0 $497.0 7.50% Convertible Senior Notes 2026 51.8 51.8 $500.0 Line of Credit(3) 2025 13.0 20.0 $400.0 9.00% Unsecur
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 June 30, Six Months Ended June 30, 2023 2022 2023 2022 Revenue $ 368.8 $ 392.2 $ 686.7 $ 805.0 Cost of revenue 316.2 341.9 590.5 704.9 Gross profit 52.6 50.3 96.2 100.1 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, 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 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, 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
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, 2022 Non-operating Other and Infrastructure Life Sciences Spectrum Corporate Eliminations INNOVATE Net income (loss) attributable to INNOVATE Corp. $ 6.8 $ (5.3) $ (5.7) $ (9.5) $ 1.3 $ (12.4) Adju
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, 2022 Non-operating Other and Infrastructure Life Sciences Spectrum Corporate Eliminations INNOVATE Net income (loss) attributable to INNOVATE Corp. $ 12.9 $ (9.4) $ (9.1) $ (20.8) $ 1.6 $ (24.8) Adju