INNOVATE Corp. (“INNOVATE” or the “Company”) (NYSE: VATE) announced
today its consolidated results for the first quarter.
Financial Summary
(in millions, except per share amounts) |
Three Months Ended March 31, |
|
|
2024 |
|
|
|
2023 |
|
|
Increase / (Decrease) |
Revenue |
$ |
315.2 |
|
|
$ |
317.9 |
|
|
(0.8)% |
Net loss attributable to common stockholders |
$ |
(17.7 |
) |
|
$ |
(10.2 |
) |
|
(73.5)% |
Basic and Diluted loss per share attributable to common
stockholders |
$ |
(0.22 |
) |
|
$ |
(0.13 |
) |
|
(69.2)% |
Total Adjusted EBITDA(1) |
$ |
12.8 |
|
|
$ |
4.9 |
|
|
161.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
(1) Reconciliation of GAAP to Non-GAAP measures
follows
Commentary“INNOVATE delivered
$315.2 million in revenue in the first quarter as the three
business segments experienced a strong start to 2024,” said Avie
Glazer, Chairman of INNOVATE. “Infrastructure's first quarter top
line results were better than expected while also achieving
year-over-year growth for Adjusted EBITDA. At Life Sciences,
MediBeacon and R2 continue to make progress and look to keep
momentum from last year. At Spectrum, the business expanded
profitability and delivered strong results in the first
quarter.”
“We delivered strong first quarter financial
results driven by continued momentum across our three business
segments,” said Paul Voigt, INNOVATE's Interim CEO. “The macro
backdrop for DBM remained relatively unchanged; however, the
business still delivered strong results and expanded margins
further. At Pansend, MediBeacon is engaged with ongoing discussion
with the FDA and R2 experienced strong North America unit sales
growth, again, this quarter. Finally, Broadcasting's network
distribution revenues grew as they launched new networks, driving a
record result this quarter.”
First Quarter 2024 and Recent
Highlights
- Closed the rights offering on April
24, 2024 and in the aggregate, the Company issued 5.3 million new
shares of common stock at the subscription price of $0.70 per whole
share for gross proceeds of $3.7 million to the Company, in
addition to 31.3 thousand shares of preferred stock to Lancer
Capital LLC (“Lancer Capital”) for gross proceeds of $31.3 million
to the Company. After giving effect to the rights offering, the
Company now has 85.2 million shares of common stock issued and
outstanding. If approved at the annual meeting, the conversion of
the 31.3 thousand shares of preferred stock purchased by Lancer
Capital would result in the issuance of an additional 44.7 million
shares of common stock. The Company expects to use the proceeds
from the rights offering for general corporate purposes, including
debt service and for working capital.
Infrastructure
- DBM Global Inc. ("DBMG") reported
first quarter 2024 revenue of $307.9 million, a decrease of 1.2%,
compared to $311.7 million in the prior year quarter. Net Income
was $4.4 million, compared to $2.0 million for the prior year
quarter. Adjusted EBITDA increased to $18.3 million from
$16.3 million in the prior year quarter.
- DBM Global grew gross margin to
14.6% in the first quarter, an expansion of approximately 150 basis
points year-over-year and Adjusted EBITDA margin to 5.9% in the
first quarter, an expansion of approximately 70 basis points
year-over-year.
- DBM Global’s reported backlog and
adjusted backlog, which takes into consideration awarded but not
yet signed contracts, was $0.9 billion and $1.2 billion
as of March 31, 2024, respectively, compared to reported and
adjusted backlog of $1.1 billion and $1.2 billion,
respectively, as of December 31, 2023.
Life Sciences
- R2 Technologies, Inc. ("R2")
continues to break records in North America with record high system
sales and number of patient treatments in Q1; over 400 systems
shipped worldwide.
- MediBeacon is engaged in an ongoing
dialogue with the FDA and remains optimistic regarding approval.
MediBeacon’s goal continues to be achieving full FDA approval
status and to gain agreement on product labeling in 2024.
Spectrum
- New 2024 network launches are
driving higher revenue growth, beginning with Free TV’s January 1st
network launches of The 365 and Outlaw and subsequent launch of
three new sports networks: Outdoor America, MTRSPT1 and SPEED SPORT
TV.
- Network distribution revenues are
growing as churn rates decline, pricing holds steady and new
programmers emerge, particularly cable and streaming networks
looking for "over-the-air" coverage.
- Participated in NAB Conference in
Las Vegas in April which generated considerable interest in HC2
Broadcasting’s platform from content providers and
broadcasters.
- Announced operating and revenue
share agreements with a large-market Public Broadcast station to
provide 3.0 "lighthousing" and commercial applications.
- Continue to actively explore 5G
broadcasting opportunities in the U.S.
- Broadcasting reported first quarter
2024 revenue of $6.3 million, compared to $5.7 million in the
prior year quarter. Net Loss was $4.8 million compared to $5.0
million in the prior year quarter. Adjusted EBITDA was
$1.6 million, compared to $0.4 million in the prior year
quarter.
First Quarter 2024 Financial
Highlights
- Revenue: For the
first quarter of 2024, INNOVATE's consolidated revenue was $315.2
million, a decrease of 0.8%, compared to $317.9 million for the
prior year quarter. The decrease was driven by our Infrastructure
segment, which was partially offset by increases at our Spectrum
and Life Sciences segments. The decrease at our Infrastructure
segment was primarily driven by the timing and size of projects at
DBMG's commercial structural steel fabrication and erection
business and Banker Steel, which was partially offset by an
increase at the industrial maintenance and repair business due to
the timing and size of projects. The increase at our Spectrum
segment was primarily driven by network launches and expanded
coverage with existing customers. The increase at our Life Sciences
segment was attributable to R2, primarily due to the launch of the
Glacial fx system in the second half of 2023 and an increase in
Glacial Rx units sold.
REVENUE by OPERATING SEGMENT |
|
|
|
|
|
|
|
(in millions) |
|
Three Months Ended March 31, |
|
|
|
2024 |
|
|
2023 |
|
Increase / (Decrease) |
Infrastructure |
|
$ |
307.9 |
|
$ |
311.7 |
|
$ |
(3.8 |
) |
Life Sciences |
|
|
1.0 |
|
|
0.5 |
|
|
0.5 |
|
Spectrum |
|
|
6.3 |
|
|
5.7 |
|
|
0.6 |
|
Consolidated INNOVATE |
|
$ |
315.2 |
|
$ |
317.9 |
|
$ |
(2.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
- Net
Loss: For the first quarter of 2024,
INNOVATE reported a Net Loss attributable to common stockholders of
$17.7 million, or $0.22 per fully diluted share, compared to a
Net Loss of $10.2 million, or $0.13 per fully diluted share,
for the prior year quarter. The increase in Net Loss was primarily
due the unrepeated gain on sale of the equity investment in HMN of
$12.3 million in the comparable period, an unrepeated
$3.8 million step-up gain from the increase in Pansend's basis
as a result of MediBeacon issuing $7.5 million of its preferred
stock to Huadong in the comparable period, an increase in tax
expense, a $2.2 million loss on debt extinguishment at R2
incurred in the current period, an increase in compensation-related
expenses and a loss on a disposal related to a plant closure in the
first quarter of 2024 at our Infrastructure segment and an increase
in interest expense from higher outstanding principal balances at
our Non-Operating Corporate and Life Sciences segments as a result
of new debt issued subsequent to the comparable period. The
increase in Net Loss was partially offset by an increase in gross
profit primarily driven by our Infrastructure segment due to timing
of projects and, to a lesser extent, our Spectrum and Life Sciences
segments, a decrease in selling, general and administrative
expenses ("SG&A") driven by unrepeated transaction expenses
related to the sale of New Saxon's 19% investment in HMN in the
comparable period, a decrease in compensation-related expenses at
R2, our Non-Operating Corporate and our Spectrum segments, a
decrease in marketing expenses and other costs as a result of cost
reduction initiatives at R2 and decreases in consulting fees,
disposition and acquisition expenses, and insurance expense at our
Non-Operating Corporate segment, a decrease in depreciation and
amortization primarily driven by our Infrastructure segment, as
certain customer contract intangibles became fully amortized in the
second quarter of 2023 and a decrease in interest expense at our
Infrastructure segment due to a decrease in outstanding principal
balances.
NET INCOME (LOSS) by OPERATING SEGMENT |
|
|
|
|
|
|
|
(in millions) |
|
Three Months Ended March 31, |
|
|
|
2024 |
|
|
|
2023 |
|
|
Increase / (Decrease) |
Infrastructure |
|
$ |
4.4 |
|
|
$ |
2.0 |
|
|
$ |
2.4 |
|
Life Sciences |
|
|
(4.5 |
) |
|
|
(2.8 |
) |
|
|
(1.7 |
) |
Spectrum |
|
|
(4.8 |
) |
|
|
(5.0 |
) |
|
|
0.2 |
|
Non-Operating Corporate |
|
|
(12.5 |
) |
|
|
(11.9 |
) |
|
|
(0.6 |
) |
Other and eliminations |
|
|
— |
|
|
|
8.7 |
|
|
|
(8.7 |
) |
Net loss attributable to INNOVATE Corp. |
|
$ |
(17.4 |
) |
|
$ |
(9.0 |
) |
|
|
(8.4 |
) |
Less: Preferred dividends |
|
|
0.3 |
|
|
|
1.2 |
|
|
|
(0.9 |
) |
Net loss attributable to common stockholders |
|
$ |
(17.7 |
) |
|
$ |
(10.2 |
) |
|
$ |
(7.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
- Adjusted EBITDA:
For the first quarter of 2024, total Adjusted EBITDA, was $12.8
million compared to total Adjusted EBITDA of $4.9 million for
the prior year quarter. The increase in Adjusted EBITDA was
primarily driven by higher margins at DBMG's commercial structural
steel fabrication and erection business, and by our Life Sciences
segment from lower equity method losses recognized from Pansend's
investment in MediBeacon due to additional investments during 2023
resulting in an increase in previously suspended losses being
recognized in the comparable period as the investment's carrying
amount was reduced to zero and by R2, driven by a decrease in
SG&A expenses primarily from decreases in compensation-related
expenses, marketing costs, and other general and administrative
expenses as a result of cost reduction initiatives, as well as an
increase in revenue primarily due to an increase in Glacial fx unit
sales, which launched in the second half of 2023, and an increase
in Glacial Rx unit sales. Additionally contributing to the increase
in Adjusted EBITDA was our Spectrum segment primarily driven by an
increase in revenue primarily as a result of network launches and
expanded coverage with existing customers, as well as a decrease in
SG&A expenses at our Non-Operating Corporate segment. The
increase was partially offset by our Infrastructure segment
primarily driven by an increase in compensation-related expenses
and a decrease in margin at the construction modeling and detailing
business.
ADJUSTED EBITDA by OPERATING SEGMENT |
|
|
|
|
|
|
|
(in millions) |
Three Months Ended March 31, |
|
|
2024 |
|
|
|
2023 |
|
|
Increase / (Decrease) |
Infrastructure |
$ |
18.3 |
|
|
$ |
16.3 |
|
|
$ |
2.0 |
Life Sciences |
|
(4.2 |
) |
|
|
(7.8 |
) |
|
|
3.6 |
Spectrum |
|
1.6 |
|
|
|
0.4 |
|
|
|
1.2 |
Non-Operating Corporate |
|
(2.9 |
) |
|
|
(3.5 |
) |
|
|
0.6 |
Other and eliminations |
|
— |
|
|
|
(0.5 |
) |
|
|
0.5 |
Total Adjusted EBITDA |
$ |
12.8 |
|
|
$ |
4.9 |
|
|
$ |
7.9 |
|
|
|
|
|
|
|
|
|
|
|
- Balance Sheet: As
of March 31, 2024, INNOVATE had cash and cash equivalents,
excluding restricted cash, of $38.4 million compared to $80.8
million as of December 31, 2023. On a stand-alone basis, as of
March 31, 2024, our Non-Operating Corporate segment had cash
and cash equivalents of $9.2 million compared to $2.5 million at
December 31, 2023.
Conference Call
INNOVATE will host a live conference call to
discuss its first quarter 2024 financial results and operations
today at 4:30 p.m. ET. The Company will post an earnings
supplemental presentation in the Investor Relations section of the
INNOVATE website at innovate-ir.com to accompany the
conference call. Dial-in instructions for the conference call and
the replay follows.
- Live Webcast
and Call. A live webcast of the
conference call can be accessed by interested parties through the
Investor Relations section of the INNOVATE website at
innovate-ir.com.
- Dial-in: 1-800-717-1738 (Domestic Toll
Free) / 1-646-307-1865 (Toll/International)
- Participant Entry Number: 1122349
-
Conference Replay*
- Dial-in: 1-844-512-2921 (Domestic
Toll Free) / 1-412-317-6671 (Toll/International)
- Conference Number: 1122349
*Available approximately two hours after the end of
the conference call through May 21, 2024.
About INNOVATE Corp.
INNOVATE Corp., is a portfolio of best-in-class
assets in three key areas of the new economy – Infrastructure, Life
Sciences and Spectrum. Dedicated to stakeholder capitalism,
INNOVATE employs approximately 4,000 people across its
subsidiaries. For more information, please visit:
www.INNOVATECorp.com.
Contacts
Investor Contact:Anthony
Rozmusir@innovatecorp.com (212) 235-2691
Non-GAAP Financial Measures
In this press release, 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,
if applicable) and Adjusted EBITDA for its operating segments. In
addition, other companies may define Adjusted EBITDA differently
than we do, which could limit its usefulness.
Adjusted EBITDA
Management believes that Adjusted EBITDA
provides investors with meaningful information for gaining an
understanding of our results as it is frequently used by the
financial community to provide insight into an organization’s
operating trends and facilitates comparisons between peer
companies, since interest, taxes, depreciation, amortization and
the other items listed in the definition of Adjusted EBITDA below
can differ greatly between organizations as a result of differing
capital structures and tax strategies. Adjusted EBITDA can also be
a useful measure of a company’s ability to service debt. While
management believes that non-U.S. GAAP measurements are useful
supplemental information, such adjusted results are not intended to
replace our U.S. GAAP financial results. Using Adjusted EBITDA as a
performance measure has inherent limitations as an analytical tool
as compared to net income (loss) or other U.S. GAAP financial
measures, as this non-GAAP measure excludes certain items,
including items that are recurring in nature, which may be
meaningful to investors. As a result of the exclusions, Adjusted
EBITDA should not be considered in isolation and does not purport
to be an alternative to net income (loss) or other U.S. GAAP
financial measures as a measure of our operating performance.
The calculation of Adjusted EBITDA, as defined
by us, consists of Net income (loss) attributable to INNOVATE
Corp., excluding: discontinued operations, if applicable;
depreciation and amortization; other operating (income) loss, which
is inclusive of (gain) loss on sale or disposal of assets, lease
termination costs, asset impairment expense and FCC reimbursements;
interest expense; other (income) expense, net; income tax expense
(benefit); non-controlling interest; share-based compensation
expense; restructuring and exit costs; and acquisition and
disposition costs.
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 statements."
Generally, forward-looking statements include information
describing actions, events, results, strategies and expectations
and are generally identifiable by use of the words “believes,”
“expects,” “intends,” “anticipates,” “plans,” “seeks,” “estimates,”
“projects,” “may,” “will,” “could,” “might,” or “continues” or
similar expressions. Such forward-looking statements are based on
current expectations and inherently involve certain risks,
assumptions and uncertainties. The forward-looking statements in
this press release include, without limitation, any statements
regarding INNOVATE’s plans and expectations for future growth and
ability to capitalize on potential opportunities, the achievement
of INNOVATE’s strategic objectives, expectations for performance of
new projects and realization of revenue from the backlog at DBM
Global, anticipated success from the continued sale of new products
in the Life Sciences segment, possible developments regarding the
FDA approval process at MediBeacon, anticipated performance of new
channels and LPTV frequencies, expanded uses for LPTV channels in
the Spectrum segment and the potential deployment of datacasting,
anticipated agreements in the Spectrum segment with public
broadcast networks, anticipated 5G broadcasting opportunities in
the Spectrum segment, anticipated developments regarding Federal
Communications Commission approval to convert existing station to
5G broadcast, our intentions to regain compliance with the NYSE's
continued listing standards, and changes in macroeconomic and
market conditions and market volatility, including interest rates,
the value of securities and other financial assets, and the impact
of such changes and volatility on INNOVATE’s financial position.
Such statements are based on the beliefs and assumptions of
INNOVATE’s management and the management of INNOVATE’s subsidiaries
and portfolio companies.
The Company believes these judgments are
reasonable, but these statements are not guarantees of performance,
results or the creation of stockholder value and the Company’s
actual results could differ materially from those expressed or
implied in the forward-looking statements due to a variety of
important factors, both positive and negative, including those that
may be identified in subsequent statements and reports filed with
the Securities and Exchange Commission (“SEC”), including in our
reports on Forms 10-K, 10-Q, and 8-K. Such important factors
include, without limitation: our dependence on distributions from
our subsidiaries to fund our operations and payments on our
obligations; the impact on our business and financial condition of
our substantial indebtedness and any significant additional
indebtedness and other financing obligations we may incur; our
dependence on the retaining and recruitment of key personnel;
volatility in the trading price of our common stock; the impact of
potential supply chain disruptions, labor shortages and increases
in overall price levels, including in transportation costs;
interest rate environment; developments relating to the ongoing
hostilities in Ukraine and Israel; increased competition in the
markets in which our operating segments conduct their businesses;
our ability to successfully identify any strategic acquisitions or
business opportunities; uncertain global economic conditions in the
markets in which our operating segments conduct their businesses;
changes in regulations and tax laws; covenant noncompliance risk;
tax consequences associated with our acquisition, holding and
disposition of target companies and assets; the ability of our
operating segments to attract and retain customers; our
expectations regarding the timing, extent and effectiveness of our
cost reduction initiatives and management’s ability to moderate or
control discretionary spending; our expectations and timing with
respect to any strategic dispositions and sales of our operating
subsidiaries, or businesses; the possibility of indemnification
claims arising out of divestitures of businesses; and our possible
inability to raise additional capital when needed or refinance our
existing debt, on attractive terms, or at all.
Although INNOVATE believes its expectations and
assumptions regarding its future operating performance are
reasonable, there can be no assurance that the expectations
reflected herein will be achieved. These risks and other important
factors discussed under the caption “Risk Factors” in our most
recent Annual Report on Form 10-K filed with the SEC, and our other
reports filed with the SEC could cause actual results to differ
materially from those indicated by the forward-looking statements
made in this press release.
You should not place undue reliance on
forward-looking statements. All forward-looking statements
attributable to INNOVATE or persons acting on its behalf are
expressly qualified in their entirety by the foregoing cautionary
statements. All such statements speak only as of the date made, and
unless legally required, INNOVATE undertakes no obligation to
update or revise publicly any forward-looking statements, whether
as a result of new information, future events or otherwise.
INNOVATE CORP.CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited,
in millions, except per share amounts)
|
|
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 operating loss (income) |
|
|
1.9 |
|
|
|
(0.4 |
) |
Income (loss) from operations |
|
|
2.8 |
|
|
|
(4.0 |
) |
Other (expense) income: |
|
|
|
|
Interest expense |
|
|
(17.2 |
) |
|
|
(15.6 |
) |
Loss from equity investees |
|
|
(1.2 |
) |
|
|
(4.0 |
) |
Other (expense) income, net |
|
|
(1.2 |
) |
|
|
16.5 |
|
Loss from operations before income taxes |
|
|
(16.8 |
) |
|
|
(7.1 |
) |
Income tax expense |
|
|
(3.3 |
) |
|
|
(0.9 |
) |
Net loss |
|
|
(20.1 |
) |
|
|
(8.0 |
) |
Net loss (income) attributable to non-controlling interests and
redeemable non-controlling interests |
|
|
2.7 |
|
|
|
(1.0 |
) |
Net loss attributable to INNOVATE Corp. |
|
|
(17.4 |
) |
|
|
(9.0 |
) |
Less: Preferred dividends |
|
|
0.3 |
|
|
|
1.2 |
|
Net loss attributable to common stockholders |
|
$ |
(17.7 |
) |
|
$ |
(10.2 |
) |
|
|
|
|
|
Loss per share - basic and diluted |
|
$ |
(0.22 |
) |
|
$ |
(0.13 |
) |
|
|
|
|
|
Weighted average common shares outstanding - basic and diluted |
|
|
78.7 |
|
|
|
77.7 |
|
|
|
|
|
|
|
|
|
|
INNOVATE CORP.CONDENSED
CONSOLIDATED BALANCE SHEETS(Unaudited, in
millions, except share amounts)
|
|
March 31,2024 |
|
December 31,2023 |
|
|
|
Assets |
|
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
38.4 |
|
|
$ |
80.8 |
|
Accounts receivable, net |
|
|
269.3 |
|
|
|
278.4 |
|
Contract assets |
|
|
82.2 |
|
|
|
118.6 |
|
Inventory |
|
|
21.8 |
|
|
|
22.4 |
|
Assets held for sale |
|
|
3.8 |
|
|
|
3.1 |
|
Other current assets |
|
|
13.1 |
|
|
|
14.6 |
|
Total current assets |
|
|
428.6 |
|
|
|
517.9 |
|
Investments |
|
|
1.8 |
|
|
|
1.8 |
|
Deferred tax asset |
|
|
1.9 |
|
|
|
2.0 |
|
Property, plant and equipment, net |
|
|
146.8 |
|
|
|
154.6 |
|
Goodwill |
|
|
126.9 |
|
|
|
127.1 |
|
Intangibles, net |
|
|
177.1 |
|
|
|
178.9 |
|
Other assets |
|
|
60.4 |
|
|
|
61.3 |
|
Total assets |
|
$ |
943.5 |
|
|
$ |
1,043.6 |
|
Liabilities, temporary equity and stockholders’
deficit |
|
|
|
|
Current liabilities |
|
|
|
|
Accounts payable |
|
$ |
122.9 |
|
|
$ |
142.9 |
|
Accrued liabilities |
|
|
50.5 |
|
|
|
70.8 |
|
Current portion of debt obligations |
|
|
34.2 |
|
|
|
30.5 |
|
Contract liabilities |
|
|
125.4 |
|
|
|
153.5 |
|
Other current liabilities |
|
|
16.0 |
|
|
|
16.1 |
|
Total current liabilities |
|
|
349.0 |
|
|
|
413.8 |
|
Deferred tax liability |
|
|
4.2 |
|
|
|
4.1 |
|
Debt obligations |
|
|
641.5 |
|
|
|
679.3 |
|
Other liabilities |
|
|
83.4 |
|
|
|
82.7 |
|
Total liabilities |
|
|
1,078.1 |
|
|
|
1,179.9 |
|
Commitments and contingencies |
|
|
|
|
Temporary equity |
|
|
|
|
Preferred Stock Series A-3, Preferred Stock Series A-4, and
Preferred Stock Series C, $0.001 par value |
|
|
39.8 |
|
|
|
16.4 |
|
Shares authorized: 20,000,000 as of both March 31, 2024 and
December 31, 2023 |
|
|
|
|
Shares issued and outstanding: 6,125 of Series A-3, 10,000 of
Series A-4 and 25,000 of Series C as of March 31, 2024; and
6,125 of Series A-3, 10,000 of Series A-4 and zero of Series C as
of December 31, 2023 |
|
|
|
|
Redeemable non-controlling interest |
|
|
(1.2 |
) |
|
|
(1.0 |
) |
Total temporary equity |
|
|
38.6 |
|
|
|
15.4 |
|
Stockholders’ deficit |
|
|
|
|
Common stock, $0.001 par value |
|
|
0.1 |
|
|
|
0.1 |
|
Shares authorized: 160,000,000 as of both March 31, 2024 and
December 31, 2023 |
|
|
|
|
Shares issued: 81,373,919 and 80,722,983 as of March 31, 2024
and December 31, 2023, respectively |
|
|
|
|
Shares outstanding: 79,885,927 and 79,234,991 as of March 31,
2024 and December 31, 2023, respectively |
|
|
|
|
Additional paid-in capital |
|
|
327.7 |
|
|
|
328.2 |
|
Treasury stock, at cost: 1,487,992 shares as of both March 31,
2024 and December 31, 2023 |
|
|
(5.4 |
) |
|
|
(5.4 |
) |
Accumulated deficit |
|
|
(504.7 |
) |
|
|
(487.3 |
) |
Accumulated other comprehensive loss |
|
|
(2.1 |
) |
|
|
(1.1 |
) |
Total INNOVATE Corp. stockholders’ deficit |
|
|
(184.4 |
) |
|
|
(165.5 |
) |
Non-controlling interest |
|
|
11.2 |
|
|
|
13.8 |
|
Total stockholders’ deficit |
|
|
(173.2 |
) |
|
|
(151.7 |
) |
Total liabilities, temporary equity and stockholders’
deficit |
|
$ |
943.5 |
|
|
$ |
1,043.6 |
|
|
|
|
|
|
|
|
|
|
INNOVATE
CORP.RECONCILIATION OF NET INCOME (LOSS) TO
ADJUSTED EBITDA(Unaudited)
(in millions) |
|
Three Months Ended March 31, 2024 |
|
|
Infrastructure |
|
Life Sciences |
|
Spectrum |
|
Non-Operating Corporate |
|
Other and Eliminations |
|
INNOVATE |
Net income (loss) attributable to INNOVATE Corp. |
|
$ |
4.4 |
|
|
$ |
(4.5 |
) |
|
$ |
(4.8 |
) |
|
$ |
(12.5 |
) |
|
$ |
— |
|
$ |
(17.4 |
) |
Adjustments to reconcile net income (loss) to Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
3.0 |
|
|
|
0.1 |
|
|
|
1.3 |
|
|
|
— |
|
|
|
— |
|
|
4.4 |
|
Depreciation and amortization (included in cost of revenue) |
|
|
4.0 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
4.0 |
|
Other operating loss |
|
|
1.6 |
|
|
|
— |
|
|
|
— |
|
|
|
0.3 |
|
|
|
— |
|
|
1.9 |
|
Interest expense |
|
|
2.7 |
|
|
|
0.9 |
|
|
|
3.4 |
|
|
|
10.2 |
|
|
|
— |
|
|
17.2 |
|
Other (income) expense, net |
|
|
(0.8 |
) |
|
|
2.0 |
|
|
|
2.0 |
|
|
|
(2.0 |
) |
|
|
— |
|
|
1.2 |
|
Income tax expense |
|
|
2.5 |
|
|
|
— |
|
|
|
— |
|
|
|
0.8 |
|
|
|
— |
|
|
3.3 |
|
Non-controlling interest |
|
|
0.4 |
|
|
|
(2.8 |
) |
|
|
(0.3 |
) |
|
|
— |
|
|
|
— |
|
|
(2.7 |
) |
Share-based compensation expense |
|
|
— |
|
|
|
0.1 |
|
|
|
— |
|
|
|
0.3 |
|
|
|
— |
|
|
0.4 |
|
Restructuring and exit costs |
|
|
0.5 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
0.5 |
|
Adjusted EBITDA |
|
$ |
18.3 |
|
|
$ |
(4.2 |
) |
|
$ |
1.6 |
|
|
$ |
(2.9 |
) |
|
$ |
— |
|
$ |
12.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions) |
|
Three Months Ended March 31, 2023 |
|
|
Infrastructure |
|
Life Sciences |
|
Spectrum |
|
Non-Operating Corporate |
|
Other and Eliminations |
|
INNOVATE |
Net income (loss) attributable to INNOVATE Corp. |
|
$ |
2.0 |
|
|
$ |
(2.8 |
) |
|
$ |
(5.0 |
) |
|
$ |
(11.9 |
) |
|
$ |
8.7 |
|
|
$ |
(9.0 |
) |
Adjustments to reconcile net income (loss) to Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
4.9 |
|
|
|
0.1 |
|
|
|
1.3 |
|
|
|
— |
|
|
|
— |
|
|
|
6.3 |
|
Depreciation and amortization (included in cost of revenue) |
|
|
3.9 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3.9 |
|
Other operating income |
|
|
(0.1 |
) |
|
|
— |
|
|
|
(0.3 |
) |
|
|
— |
|
|
|
— |
|
|
|
(0.4 |
) |
Interest expense |
|
|
3.4 |
|
|
|
0.5 |
|
|
|
3.2 |
|
|
|
8.5 |
|
|
|
— |
|
|
|
15.6 |
|
Other (income) expense, net |
|
|
(0.2 |
) |
|
|
(3.9 |
) |
|
|
1.8 |
|
|
|
(1.6 |
) |
|
|
(12.6 |
) |
|
|
(16.5 |
) |
Income tax expense (benefit) |
|
|
1.1 |
|
|
|
— |
|
|
|
— |
|
|
|
1.0 |
|
|
|
(1.2 |
) |
|
|
0.9 |
|
Non-controlling interest |
|
|
0.2 |
|
|
|
(1.9 |
) |
|
|
(0.6 |
) |
|
|
— |
|
|
|
3.3 |
|
|
|
1.0 |
|
Share-based compensation expense |
|
|
— |
|
|
|
0.2 |
|
|
|
— |
|
|
|
0.3 |
|
|
|
— |
|
|
|
0.5 |
|
Restructuring and exit costs |
|
|
0.5 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.5 |
|
Acquisition and disposition costs |
|
|
0.6 |
|
|
|
— |
|
|
|
— |
|
|
|
0.2 |
|
|
|
1.3 |
|
|
|
2.1 |
|
Adjusted EBITDA |
|
$ |
16.3 |
|
|
$ |
(7.8 |
) |
|
$ |
0.4 |
|
|
$ |
(3.5 |
) |
|
$ |
(0.5 |
) |
|
$ |
4.9 |
|
INNOVATE (NYSE:VATE)
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