INNOVATE Corp. (“INNOVATE” or the “Company”) (NYSE: VATE) announced
today its consolidated results for the second quarter.
Financial Summary
(in millions, except per share
amounts) |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2022 |
|
2021 |
|
Increase / (Decrease) |
|
2022 |
|
2021 |
|
Increase / (Decrease) |
Revenue |
$ |
392.2 |
|
|
$ |
243.8 |
|
|
60.9 |
% |
|
$ |
805.0 |
|
|
$ |
415.6 |
|
|
93.7 |
% |
Net loss
attributable to common stock and participating preferred
stockholders |
$ |
(13.6 |
) |
|
$ |
(23.7 |
) |
|
42.6 |
% |
|
$ |
(27.2 |
) |
|
$ |
(11.5 |
) |
|
(136.5 |
)% |
Diluted loss per
share - Net loss attributable to common stock and participating
preferred shareholders |
$ |
(0.18 |
) |
|
$ |
(0.31 |
) |
|
41.9 |
% |
|
$ |
(0.35 |
) |
|
$ |
(0.15 |
) |
|
(133.3 |
)% |
Total Adjusted
EBITDA(1)(2) |
$ |
12.1 |
|
|
$ |
6.5 |
|
|
86.2 |
% |
|
$ |
23.6 |
|
|
$ |
7.5 |
|
|
214.7 |
% |
(1) Reconciliation of GAAP to Non-GAAP measures
follows(2) Note that Total Adjusted EBITDA excludes results for
discontinued operations
Commentary“INNOVATE's strong
financial performance in the second quarter is a testament to
continued momentum across each of its best-in-class operating
segments as well as the team's relentless focus on the execution of
our long-term strategy to drive shareholder value," said Avie
Glazer, Chairman of INNOVATE. “Infrastructure revenue grew 65%
year-over-year in the second quarter and has been a consistent cash
flow generative business. At Life Sciences, MediBeacon began its
U.S. Pivotal Study, marking a key milestone in the development and
commercialization of its kidney monitoring technology. Lastly,
Spectrum continues to make progress optimizing operations despite
short-term challenges in the OTA market. We remain optimistic about
the strategic positioning and long-term value of each of our three
operating segments for the rest of 2022 and beyond."
“We are very pleased with our second quarter
results” said Wayne Barr, Jr., Chief Executive Officer of INNOVATE.
“We continue to be impressed with the performance of DBM Global, as
we continue to capitalize on positive market dynamics and
strategically leverage DBM's broader geographic influence. In Life
Sciences, we continue to advance toward the commercialization of
MediBeacon's innovative kidney monitoring technology and at R2, our
expanded sales team is focused on driving growth in new products.
At Spectrum, we completed all their station builds targeted for
this year. We believe that the scale of Spectrum's assets combined
with the demand for a national distribution platform will create
significant value in the near future. Overall, we have made
significant progress across our operating segments.”
Second Quarter 2022 Highlights and
Recent Highlights
- The Company achieved Revenue and
Adjusted EBITDA growth of 60.9% and 86.2%, respectively.
Infrastructure
- DBM Global Inc. ("DBM Global")
achieved strong revenue in the second quarter, driven by Banker
Steel and robust demand in the commercial steel fabrication and
erection markets.
- For the second quarter of 2022, DBM
Global reported revenue of $382.1 million, an increase of 64.7%
compared to $232.0 million in the prior year quarter. Net Income
was $6.8 million, compared to $1.4 million for the prior year
quarter. Adjusted EBITDA increased to $20.9 million from
$13.9 million in the prior year quarter.
- DBM Global’s total backlog
decreased to $1.5 billion as of June 30, 2022, slightly down from
$1.6 billion as of December 31, 2021. Taking into
consideration awarded, but not yet signed contracts, backlog would
have been approximately $1.7 billion at the end of the second
quarter of 2022, compared with $1.9 billion as of December 31,
2021.
Life Sciences
- R2 Technologies, Inc. ("R2") has shipped 171 GLACIAL devices
globally in 2022.
- The FDA accepted MediBeacon Inc.'s ("MediBeacon")
Investigational Device Exemption (IDE) application and, on June 26,
2022, MediBeacon initiated its Transdermal GFR Measurement System
FDA Pivotal Study.
Spectrum
- All 24 new station builds targeted for 2022 have been built and
are now on air, including the last two builds in Bangor, ME, which
have received Canadian regulatory approval and are operating today.
Broadcasting owns and operates 249 stations that cover 105
designated market areas (DMAs).
- For the second quarter of 2022,
Broadcasting reported revenue of $9.1 million, a decrease of 14.2%
compared to $10.6 million in the prior year quarter. The
decrease was primarily driven by lower advertising revenue and a
decline in paid programming.
- For the second quarter of 2022,
Broadcasting reported Net Loss of $5.7 million compared to $1.1
million in the prior year quarter. Adjusted EBITDA was
$0.4 million, compared to an Adjusted EBITDA of
$2.7 million in the prior year quarter.
Second Quarter Financial Highlights
- Revenue: For the
second quarter of 2022, INNOVATE's consolidated revenue from
continuing operations was $392.2 million, an increase of 60.9%
compared to $243.8 million for the prior year quarter. The increase
in revenue was due to contributions from the Company’s
Infrastructure segment.
REVENUE by OPERATING SEGMENT |
|
|
|
|
|
|
|
|
|
|
|
|
(in millions) |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2022 |
|
2021 |
|
Increase / (Decrease) |
|
2022 |
|
2021 |
|
Increase / (Decrease) |
Infrastructure |
$ |
382.1 |
|
$ |
232.0 |
|
$ |
150.1 |
|
|
$ |
784.3 |
|
$ |
393.3 |
|
$ |
391.0 |
|
Life Sciences |
|
1.0 |
|
|
1.2 |
|
|
(0.2 |
) |
|
|
1.8 |
|
|
1.2 |
|
|
0.6 |
|
Spectrum |
|
9.1 |
|
|
10.6 |
|
|
(1.5 |
) |
|
|
18.9 |
|
|
21.1 |
|
|
(2.2 |
) |
Consolidated INNOVATE |
$ |
392.2 |
|
$ |
243.8 |
|
$ |
148.4 |
|
|
$ |
805.0 |
|
$ |
415.6 |
|
$ |
389.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Net Loss: For the
second quarter of 2022, INNOVATE reported a Net Loss attributable
to common stock and participating preferred stockholders of
$13.6 million, or $0.18 per fully diluted share, compared to a
Net Loss of $23.7 million, or $0.31 per fully diluted share,
for the prior year quarter. The decrease in the Net loss was driven
primarily by the contribution from Banker Steel, which was acquired
by the Infrastructure segment on May 27, 2021, higher gross profit
from higher sales at the fabrication and erection business, as well
as the unrepeated loss on debt extinguishment in the comparable
period as a result of the DBM Global refinancing, which coincided
with the Banker Steel acquisition. The decrease was also
attributable to the Non-operating Corporate segment, which included
an accrued settlement for the former CEO in the comparable period
and decreases in legal fees driven by the conclusion of
extraordinary projects such as CEO separation and 2021
Board-directed projects. This was partially offset by certain
drivers in the Spectrum segment such as asset impairments,
reductions in Network advertising revenue due to a decreased
footprint and declines in paid programming, as well as higher
support service fees and new royalty expenses for the Azteca
business, which went into effect Q1 2022, along with increases in
tower maintenance and utilities as a result of additional station
builds throughout 2021.
NET LOSS by OPERATING SEGMENT |
|
|
|
|
|
|
|
|
|
|
|
|
(in millions) |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2022 |
|
2021 |
|
Increase / (Decrease) |
|
2022 |
|
2021 |
|
Increase / (Decrease) |
Infrastructure |
$ |
6.8 |
|
|
$ |
1.4 |
|
|
$ |
5.4 |
|
|
$ |
12.9 |
|
|
$ |
1.4 |
|
|
$ |
11.5 |
|
Life Sciences |
|
(5.3 |
) |
|
|
(4.3 |
) |
|
|
(1.0 |
) |
|
|
(9.4 |
) |
|
|
(8.5 |
) |
|
|
(0.9 |
) |
Spectrum |
|
(5.7 |
) |
|
|
(1.1 |
) |
|
|
(4.6 |
) |
|
|
(9.1 |
) |
|
|
(5.5 |
) |
|
|
(3.6 |
) |
Non-operating Corporate |
|
(9.5 |
) |
|
|
(19.2 |
) |
|
|
9.7 |
|
|
|
(20.8 |
) |
|
|
(50.0 |
) |
|
|
29.2 |
|
Other and Eliminations |
|
1.3 |
|
|
|
1.2 |
|
|
|
0.1 |
|
|
|
1.6 |
|
|
|
1.3 |
|
|
|
0.3 |
|
Net loss attributable to
INNOVATE Corp., excluding discontinued operations |
$ |
(12.4 |
) |
|
$ |
(22.0 |
) |
|
$ |
9.6 |
|
|
$ |
(24.8 |
) |
|
$ |
(61.3 |
) |
|
$ |
36.5 |
|
Net income from discontinued
operations |
|
— |
|
|
|
(1.5 |
) |
|
|
1.5 |
|
|
|
— |
|
|
|
50.4 |
|
|
|
(50.4 |
) |
Net loss attributable to
INNOVATE Corp. |
$ |
(12.4 |
) |
|
$ |
(23.5 |
) |
|
|
11.1 |
|
|
|
(24.8 |
) |
|
|
(10.9 |
) |
|
|
(13.9 |
) |
Less: Preferred dividends and
deemed dividends from conversions |
|
1.2 |
|
|
|
0.2 |
|
|
|
1.0 |
|
|
|
2.4 |
|
|
|
0.6 |
|
|
|
1.8 |
|
Net loss attributable to
common stock and participating preferred stockholders |
$ |
(13.6 |
) |
|
$ |
(23.7 |
) |
|
$ |
10.1 |
|
|
$ |
(27.2 |
) |
|
$ |
(11.5 |
) |
|
$ |
(15.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Adjusted EBITDA:
For the second quarter of 2022, Total Adjusted EBITDA, which
excludes discontinued operations, was $12.1 million, compared to
Total Adjusted EBITDA of $6.5 million for the prior year
quarter. The increase in second quarter Adjusted EBITDA can be
attributed to the contribution from Banker Steel at the
Infrastructure segment, which was acquired on May 27, 2021, as well
as from the fabrication and erection business as a result of larger
jobs with increased profits in the current year. The increase was
due to settlement expense for the Company's former CEO accrued in
the prior period, as well as decreased legal expenses at the
Non-operating Corporate segment. The increase was partially offset
by increases in G&A expenses at the Infrastructure segment due
to the acquisition of Banker Steel, increases in salaries and
wages, increases in travel expenses and increases in professional
fees at the Infrastructure segment, as well as lower contribution
at the industrial maintenance and repair, and construction modeling
and detailing, businesses. The increase in Adjusted EBITDA was also
partially offset by decreased advertising revenue at the Azteca
network driven by a decreased footprint, declines in paid
programming, an increase in expenses at the Azteca network as a
result of higher support service fees and royalty expenses, which
started in the first quarter of 2022, and an increase in station
costs as a result of new station builds at the Spectrum segment;
and increased expenses at the Life Sciences segment driven by
MediBeacon as the Pivotal Study commenced in the second
quarter.
ADJUSTED
EBITDA by OPERATING SEGMENT |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions) |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2022 |
|
2021 |
|
Increase / (Decrease) |
|
2022 |
|
2021 |
|
Increase/(Decrease) |
Infrastructure |
$ |
20.9 |
|
|
$ |
13.9 |
|
|
$ |
7.0 |
|
|
$ |
41.4 |
|
|
$ |
25.2 |
|
|
$ |
16.2 |
|
Life Sciences |
|
(7.5 |
) |
|
|
(6.1 |
) |
|
|
(1.4 |
) |
|
|
(13.3 |
) |
|
|
(12.3 |
) |
|
|
(1.0 |
) |
Spectrum |
|
0.4 |
|
|
|
2.7 |
|
|
|
(2.3 |
) |
|
|
1.7 |
|
|
|
3.5 |
|
|
|
(1.8 |
) |
Non-operating Corporate |
|
(3.4 |
) |
|
|
(5.7 |
) |
|
|
2.3 |
|
|
|
(8.0 |
) |
|
|
(9.7 |
) |
|
|
1.7 |
|
Other and Eliminations |
|
1.7 |
|
|
|
1.7 |
|
|
|
— |
|
|
|
1.8 |
|
|
|
0.8 |
|
|
|
1.0 |
|
Total Adjusted EBITDA |
$ |
12.1 |
|
|
$ |
6.5 |
|
|
$ |
5.6 |
|
|
$ |
23.6 |
|
|
$ |
7.5 |
|
|
$ |
16.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Balance Sheet: As
of June 30, 2022, INNOVATE had cash and cash equivalents,
excluding restricted cash, of $24.9 million compared to $45.5
million as of December 31, 2021. On a stand-alone basis, as of
June 30, 2022, the Corporate segment had cash and cash
equivalents of $3.6 million compared to $22.0 million at
December 31, 2021.
Conference Call
INNOVATE will host a live conference call to
discuss its second quarter 2022 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: 1-877-704-4453 (Domestic Toll Free) / 1-201-389-0920
(Toll/International)
- Participant Entry Number: 13731314
- Conference
Replay*
- Dial-in: 1-844-512-2921 (Domestic
Toll Free) / 1-412-317-6671 (Toll/International)
- Conference Number: 13731314
*Available approximately two hours after the end of the
conference call through August 17, 2022.
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 3,902 people across its subsidiaries. For more
information, please visit: www.INNOVATECorp.com.
Contacts
Investor Contact:Anthony
Rozmusir@innovatecorp.com(212) 235-2691
Media Contact:ReevemarkPaul
Caminiti/Pam Greene/Luc HerbowyINNOVATE.Team@reevemark.com(212)
433-4600
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)
and Adjusted EBITDA for its operating segments.
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.
Adjusted EBITDA excludes the results of operations and any
consolidating eliminations of our previous Insurance segment.
The calculation of Adjusted EBITDA, as defined
by us, consists of Net income (loss) as adjusted for discontinued
operations; depreciation and amortization; Other operating (income)
expense, which is inclusive of (gain) loss on sale or disposal of
assets, lease termination costs, asset impairment expense and FCC
reimbursements; interest expense; loss on early extinguishment or
restructuring of debt; other (income) expense, net; gain on sale or
dissolution of subsidiary; income tax expense (benefit);
noncontrolling interest; share-based compensation expense;
non-recurring items; costs associated with the COVID-19 pandemic,
and acquisition and disposition costs.
Management recognizes that using Adjusted EBITDA
as a performance measure has inherent limitations as an analytical
tool as compared to net income (loss) or other GAAP financial
measures, as these non-GAAP measures exclude certain items,
including items that are recurring in nature, which may be
meaningful to investors.
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 presentation include, without limitation, any statements
regarding INNOVATE’s inability to predict the extent to which the
COVID-19 pandemic and related impacts will continue to adversely
impact INNOVATE’s business operations, financial performance,
results of operations, financial position, the prices of INNOVATE’s
securities and the achievement of INNOVATE’s strategic objectives,
and changes in macroeconomic and market conditions and market
volatility (including developments and volatility arising from the
COVID-19 pandemic), 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 you should understand that 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: developments
relating to on-going hostilities in Ukraine, the severity,
magnitude and duration of the COVID-19 pandemic, including impacts
of the pandemic and of businesses’ and governments’ responses to
the pandemic on INNOVATE’s operations and personnel, and on
commercial activity and demand across our businesses, capital
market conditions, including the ability of INNOVATE and INNOVATE’s
subsidiaries to raise capital; the ability of INNOVATE’s
subsidiaries and portfolio companies to generate sufficient net
income and cash flows to make upstream cash distributions;
volatility in the trading price of INNOVATE common stock; the
ability of INNOVATE and its subsidiaries and portfolio companies to
identify any suitable future acquisition or disposition
opportunities; our ability to realize efficiencies, cost savings,
income and margin improvements, growth, economies of scale and
other anticipated benefits of strategic transactions; difficulties
related to the integration of financial reporting of acquired or
target businesses; difficulties completing pending and future
acquisitions and dispositions; effects of litigation,
indemnification claims, and other contingent liabilities; changes
in regulations and tax laws; covenants noncompliance risk; interest
rate environment; ability to remain in compliance with NYSE listing
requirement and risks that may affect the performance of the
operating subsidiaries and portfolio companies of INNOVATE.
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 presentation.
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(in millions,
except per share amounts)(Unaudited)
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Revenue |
$ |
392.2 |
|
|
$ |
243.8 |
|
|
$ |
805.0 |
|
|
$ |
415.6 |
|
Cost of revenue |
|
341.9 |
|
|
|
207.4 |
|
|
|
704.9 |
|
|
|
348.7 |
|
Gross
profit |
|
50.3 |
|
|
|
36.4 |
|
|
|
100.1 |
|
|
|
66.9 |
|
Operating expenses: |
|
|
|
|
|
|
|
Selling, general and administrative |
|
42.1 |
|
|
|
39.5 |
|
|
|
84.7 |
|
|
|
76.6 |
|
Depreciation and amortization |
|
6.9 |
|
|
|
4.8 |
|
|
|
13.8 |
|
|
|
8.7 |
|
Other operating loss (income) |
|
1.7 |
|
|
|
(0.2 |
) |
|
|
1.3 |
|
|
|
0.2 |
|
(Loss) income from
operations |
|
(0.4 |
) |
|
|
(7.7 |
) |
|
|
0.3 |
|
|
|
(18.6 |
) |
Other (expense) income: |
|
|
|
|
|
|
|
Interest expense |
|
(12.5 |
) |
|
|
(12.4 |
) |
|
|
(25.1 |
) |
|
|
(33.8 |
) |
Loss on early extinguishment or restructuring of debt |
|
— |
|
|
|
(1.6 |
) |
|
|
— |
|
|
|
(12.4 |
) |
(Loss) income from equity investees |
|
(0.5 |
) |
|
|
0.2 |
|
|
|
(1.0 |
) |
|
|
(1.9 |
) |
Other income, net |
|
1.5 |
|
|
|
0.4 |
|
|
|
1.4 |
|
|
|
3.8 |
|
Loss from continuing
operations before income taxes |
|
(11.9 |
) |
|
|
(21.1 |
) |
|
|
(24.4 |
) |
|
|
(62.9 |
) |
Income tax expense |
|
(2.0 |
) |
|
|
(2.6 |
) |
|
|
(3.6 |
) |
|
|
(3.7 |
) |
Loss from continuing
operations |
|
(13.9 |
) |
|
|
(23.7 |
) |
|
|
(28.0 |
) |
|
|
(66.6 |
) |
(Loss) income from discontinued operations (including gain on
disposal of $40.4 million for the six months ended June 30,
2021) |
|
— |
|
|
|
(1.5 |
) |
|
|
— |
|
|
|
50.4 |
|
Net loss |
|
(13.9 |
) |
|
|
(25.2 |
) |
|
|
(28.0 |
) |
|
|
(16.2 |
) |
Net loss attributable to noncontrolling interest and redeemable
noncontrolling interest |
|
1.5 |
|
|
|
1.7 |
|
|
|
3.2 |
|
|
|
5.3 |
|
Net loss attributable to
INNOVATE Corp. |
|
(12.4 |
) |
|
|
(23.5 |
) |
|
|
(24.8 |
) |
|
|
(10.9 |
) |
Less: Preferred dividends and deemed dividends from
conversions |
|
1.2 |
|
|
|
0.2 |
|
|
|
2.4 |
|
|
|
0.6 |
|
Net loss attributable to
common stock and participating preferred stockholders |
$ |
(13.6 |
) |
|
$ |
(23.7 |
) |
|
$ |
(27.2 |
) |
|
$ |
(11.5 |
) |
|
|
|
|
|
|
|
|
Loss per common share -
continuing operations |
|
|
|
|
|
|
|
Basic |
$ |
(0.18 |
) |
|
$ |
(0.29 |
) |
|
$ |
(0.35 |
) |
|
$ |
(0.82 |
) |
Diluted |
$ |
(0.18 |
) |
|
$ |
(0.29 |
) |
|
$ |
(0.35 |
) |
|
$ |
(0.82 |
) |
|
|
|
|
|
|
|
|
(Loss) income per common share -
discontinued operations |
|
|
|
|
|
|
|
Basic |
$ |
— |
|
|
$ |
(0.02 |
) |
|
$ |
— |
|
|
$ |
0.67 |
|
Diluted |
$ |
— |
|
|
$ |
(0.02 |
) |
|
$ |
— |
|
|
$ |
0.67 |
|
|
|
|
|
|
|
|
|
Loss per share - Net loss
attributable to common stock and participating preferred
stockholders |
|
|
|
|
|
|
|
Basic |
$ |
(0.18 |
) |
|
$ |
(0.31 |
) |
|
$ |
(0.35 |
) |
|
$ |
(0.15 |
) |
Diluted |
$ |
(0.18 |
) |
|
$ |
(0.31 |
) |
|
$ |
(0.35 |
) |
|
$ |
(0.15 |
) |
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
Basic |
|
77.5 |
|
|
|
77.0 |
|
|
|
77.4 |
|
|
|
77.1 |
|
Diluted |
|
77.5 |
|
|
|
77.0 |
|
|
|
77.4 |
|
|
|
77.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INNOVATE CORP.CONDENSED
CONSOLIDATED BALANCE SHEET(in millions, except
share amounts)(Unaudited)
|
June 30, |
|
December 31, |
|
2022 |
|
2021 |
Assets |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
$ |
24.9 |
|
|
$ |
45.5 |
|
Accounts receivable, net |
|
271.1 |
|
|
|
247.1 |
|
Contract assets |
|
152.7 |
|
|
|
118.6 |
|
Inventory |
|
20.1 |
|
|
|
17.0 |
|
Restricted cash |
|
1.0 |
|
|
|
2.0 |
|
Assets held for sale |
|
1.4 |
|
|
|
1.5 |
|
Other current assets |
|
11.1 |
|
|
|
10.9 |
|
Total current assets |
|
482.3 |
|
|
|
442.6 |
|
Investments |
|
58.9 |
|
|
|
56.0 |
|
Deferred tax asset |
|
2.8 |
|
|
|
3.0 |
|
Property, plant and equipment, net |
|
164.5 |
|
|
|
169.9 |
|
Goodwill |
|
127.1 |
|
|
|
127.4 |
|
Intangibles, net |
|
198.4 |
|
|
|
208.4 |
|
Other assets |
|
72.4 |
|
|
|
73.3 |
|
Total
assets |
$ |
1,106.4 |
|
|
$ |
1,080.6 |
|
|
|
|
|
Liabilities, temporary
equity and stockholders’ deficit |
|
|
|
Current liabilities |
|
|
|
Accounts payable |
$ |
182.4 |
|
|
$ |
179.2 |
|
Accrued liabilities |
|
93.3 |
|
|
|
93.4 |
|
Current portion of debt obligations |
|
73.0 |
|
|
|
69.5 |
|
Contract liabilities |
|
93.3 |
|
|
|
79.1 |
|
Other current liabilities |
|
19.7 |
|
|
|
18.3 |
|
Total current liabilities |
|
461.7 |
|
|
|
439.5 |
|
Deferred tax liability |
|
9.9 |
|
|
|
9.1 |
|
Debt obligations |
|
594.1 |
|
|
|
556.8 |
|
Other liabilities |
|
59.8 |
|
|
|
63.3 |
|
Total
liabilities |
|
1,125.5 |
|
|
|
1,068.7 |
|
Commitments and
contingencies |
|
|
|
Temporary
equity |
|
|
|
Preferred stock |
|
18.2 |
|
|
|
18.8 |
|
Redeemable noncontrolling interest |
|
46.8 |
|
|
|
49.3 |
|
Total temporary
equity |
|
65.0 |
|
|
|
68.1 |
|
Stockholders’
deficit |
|
|
|
Common stock, $0.001 par value |
|
0.1 |
|
|
|
0.1 |
|
Shares authorized: 160,000,000 at both June 30, 2022 and
December 31, 2021 |
|
|
|
Shares issued: 79,829,503 and 79,225,964 at June 30, 2022 and
December 31, 2021, respectively |
|
|
|
Shares outstanding: 78,440,287 and 77,836,748 at June 30, 2022
and December 31, 2021, respectively |
|
|
|
Additional paid-in capital |
|
330.7 |
|
|
|
330.6 |
|
Treasury stock, at cost: 1,389,216 shares at both June 30,
2022 and December 31, 2021 |
|
(5.2 |
) |
|
|
(5.2 |
) |
Accumulated deficit |
|
(441.0 |
) |
|
|
(416.2 |
) |
Accumulated other comprehensive income |
|
4.7 |
|
|
|
6.4 |
|
Total INNOVATE Corp.
stockholders’ deficit |
|
(110.7 |
) |
|
|
(84.3 |
) |
Noncontrolling interest |
|
26.6 |
|
|
|
28.1 |
|
Total stockholders’
deficit |
|
(84.1 |
) |
|
|
(56.2 |
) |
Total liabilities,
temporary equity and stockholders’ deficit |
$ |
1,106.4 |
|
|
$ |
1,080.6 |
|
|
|
|
|
|
|
|
|
INNOVATE
CORP.RECONCILIATION OF NET INCOME (LOSS) TO
ADJUSTED EBITDA(Unaudited)
(in millions) |
Three Months ended June 30, 2022 |
|
Infrastructure |
|
Life Sciences |
|
Spectrum |
|
Non-operating Corporate |
|
Other and Elimination |
|
INNOVATE |
Net (loss) attributable to
INNOVATE Corp. |
|
|
|
|
|
|
|
|
|
|
$ |
(12.4 |
) |
Less: Discontinued
operations |
|
|
|
|
|
|
|
|
|
|
|
— |
|
Net Income (loss) attributable to INNOVATE Corp., excluding
discontinued operations |
$ |
6.8 |
|
|
$ |
(5.3 |
) |
|
$ |
(5.7 |
) |
|
$ |
(9.5 |
) |
|
$ |
1.3 |
|
$ |
(12.4 |
) |
Adjustments to reconcile net
income (loss) to Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
5.3 |
|
|
|
— |
|
|
|
1.5 |
|
|
|
0.1 |
|
|
|
— |
|
|
6.9 |
|
Depreciation and amortization (included in cost of revenue) |
|
3.6 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
3.6 |
|
Other operating expense |
|
— |
|
|
|
— |
|
|
|
1.7 |
|
|
|
— |
|
|
|
— |
|
|
1.7 |
|
Interest expense |
|
2.2 |
|
|
|
— |
|
|
|
1.9 |
|
|
|
8.4 |
|
|
|
— |
|
|
12.5 |
|
Other (income) expense, net |
|
(1.4 |
) |
|
|
(0.2 |
) |
|
|
1.4 |
|
|
|
(1.2 |
) |
|
|
— |
|
|
(1.4 |
) |
Gain on sale or dissolution of subsidiary |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
|
(0.1 |
) |
Income tax expense (benefit) |
|
3.5 |
|
|
|
— |
|
|
|
— |
|
|
|
(1.5 |
) |
|
|
— |
|
|
2.0 |
|
Noncontrolling interest |
|
0.7 |
|
|
|
(2.1 |
) |
|
|
(0.5 |
) |
|
|
— |
|
|
|
0.4 |
|
|
(1.5 |
) |
Share-based compensation expense |
|
— |
|
|
|
0.1 |
|
|
|
— |
|
|
|
0.4 |
|
|
|
— |
|
|
0.5 |
|
Nonrecurring Items |
|
0.1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
0.1 |
|
Acquisition and disposition costs |
|
0.1 |
|
|
|
— |
|
|
|
0.1 |
|
|
|
— |
|
|
|
— |
|
|
0.2 |
|
Adjusted EBITDA |
$ |
20.9 |
|
|
$ |
(7.5 |
) |
|
$ |
0.4 |
|
|
$ |
(3.4 |
) |
|
$ |
1.7 |
|
$ |
12.1 |
|
(in millions) |
Three Months ended June 30, 2021 |
|
Infrastructure |
|
Life Sciences |
|
Spectrum |
|
Non-operating Corporate |
|
Other and Elimination |
|
INNOVATE |
Net (loss) attributable to
INNOVATE Corp. |
|
|
|
|
|
|
|
|
|
|
$ |
(23.5 |
) |
Less: Discontinued
operations |
|
|
|
|
|
|
|
|
|
|
|
(1.5 |
) |
Net Income (loss) attributable to INNOVATE Corp., excluding
discontinued operations |
$ |
1.4 |
|
|
$ |
(4.3 |
) |
|
$ |
(1.1 |
) |
|
$ |
(19.2 |
) |
|
$ |
1.2 |
|
|
$ |
(22.0 |
) |
Adjustments to reconcile net
income (loss) to Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
3.3 |
|
|
|
0.1 |
|
|
|
1.4 |
|
|
|
— |
|
|
|
— |
|
|
|
4.8 |
|
Depreciation and amortization (included in cost of revenue) |
|
2.7 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2.7 |
|
Other operating (income) |
|
— |
|
|
|
— |
|
|
|
(0.2 |
) |
|
|
— |
|
|
|
— |
|
|
|
(0.2 |
) |
Interest expense |
|
2.2 |
|
|
|
— |
|
|
|
2.4 |
|
|
|
7.8 |
|
|
|
— |
|
|
|
12.4 |
|
Loss on early extinguishment or restructuring of debt |
|
1.5 |
|
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
|
|
— |
|
|
|
1.6 |
|
Other (income) expense, net |
|
(4.1 |
) |
|
|
— |
|
|
|
0.4 |
|
|
|
3.3 |
|
|
|
— |
|
|
|
(0.4 |
) |
Income tax expense |
|
1.2 |
|
|
|
— |
|
|
|
— |
|
|
|
1.4 |
|
|
|
— |
|
|
|
2.6 |
|
Noncontrolling interest |
|
0.2 |
|
|
|
(1.9 |
) |
|
|
(0.5 |
) |
|
|
— |
|
|
|
0.6 |
|
|
|
(1.6 |
) |
Share-based compensation expense |
|
— |
|
|
|
— |
|
|
|
0.2 |
|
|
|
0.5 |
|
|
|
— |
|
|
|
0.7 |
|
Nonrecurring Items |
|
0.2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.2 |
|
COVID-19 Costs |
|
4.0 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4.0 |
|
Acquisition and disposition costs |
|
1.3 |
|
|
|
— |
|
|
|
0.1 |
|
|
|
0.4 |
|
|
|
(0.1 |
) |
|
|
1.7 |
|
Adjusted EBITDA |
$ |
13.9 |
|
|
$ |
(6.1 |
) |
|
$ |
2.7 |
|
|
$ |
(5.7 |
) |
|
$ |
1.7 |
|
|
$ |
6.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INNOVATE
CORP.RECONCILIATION OF NET INCOME (LOSS) TO
ADJUSTED EBITDA(Unaudited)
(in millions) |
Six Months ended June 30, 2022 |
|
Infrastructure |
|
Life Sciences |
|
Spectrum |
|
Non-operating Corporate |
|
Other and Eliminations |
|
INNOVATE |
Net (loss) attributable to
INNOVATE Corp. |
|
|
|
|
|
|
|
|
|
|
$ |
(24.8 |
) |
Less: Discontinued
operations |
|
|
|
|
|
|
|
|
|
|
|
— |
|
Net Income (loss) attributable to INNOVATE Corp., excluding
discontinued operations |
$ |
12.9 |
|
|
$ |
(9.4 |
) |
|
$ |
(9.1 |
) |
|
$ |
(20.8 |
) |
|
$ |
1.6 |
|
|
$ |
(24.8 |
) |
Adjustments to reconcile net
income (loss) to Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
10.6 |
|
|
|
0.1 |
|
|
|
3.0 |
|
|
|
0.1 |
|
|
|
— |
|
|
|
13.8 |
|
Depreciation and amortization (included in cost of revenue) |
|
7.3 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7.3 |
|
Other operating (income) expense |
|
(0.6 |
) |
|
|
— |
|
|
|
1.9 |
|
|
|
— |
|
|
|
— |
|
|
|
1.3 |
|
Gain on sale or dissolution of subsidiary |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
|
|
(0.1 |
) |
Interest expense |
|
4.4 |
|
|
|
— |
|
|
|
3.9 |
|
|
|
16.8 |
|
|
|
— |
|
|
|
25.1 |
|
Other (income) expense, net |
|
(1.3 |
) |
|
|
(0.1 |
) |
|
|
2.9 |
|
|
|
(2.8 |
) |
|
|
— |
|
|
|
(1.3 |
) |
Income tax expense (benefit) |
|
6.4 |
|
|
|
— |
|
|
|
— |
|
|
|
(2.8 |
) |
|
|
— |
|
|
|
3.6 |
|
Noncontrolling interest |
|
1.3 |
|
|
|
(4.1 |
) |
|
|
(1.1 |
) |
|
|
— |
|
|
|
0.7 |
|
|
|
(3.2 |
) |
Share-based compensation expense |
|
— |
|
|
|
0.2 |
|
|
|
— |
|
|
|
1.1 |
|
|
|
— |
|
|
|
1.3 |
|
Nonrecurring items |
|
0.1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
Acquisition and disposition costs |
|
0.3 |
|
|
|
— |
|
|
|
0.2 |
|
|
|
0.5 |
|
|
|
(0.5 |
) |
|
|
0.5 |
|
Adjusted EBITDA |
$ |
41.4 |
|
|
$ |
(13.3 |
) |
|
$ |
1.7 |
|
|
$ |
(8.0 |
) |
|
$ |
1.8 |
|
|
$ |
23.6 |
|
(in millions) |
Six Months ended June 30, 2021 |
|
Infrastructure |
|
Life Sciences |
|
Spectrum |
|
Non-operating Corporate |
|
Other and Eliminations |
|
INNOVATE |
Net (loss) attributable to
INNOVATE Corp. |
|
|
|
|
|
|
|
|
|
|
$ |
(10.9 |
) |
Less: Discontinued
operations |
|
|
|
|
|
|
|
|
|
|
|
50.4 |
|
Net Income (loss) attributable to INNOVATE Corp., excluding
discontinued operations |
$ |
1.4 |
|
|
$ |
(8.5 |
) |
|
$ |
(5.5 |
) |
|
$ |
(50.0 |
) |
|
$ |
1.3 |
|
|
$ |
(61.3 |
) |
Adjustments to reconcile net
income (loss) to Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
5.7 |
|
|
|
0.1 |
|
|
|
2.9 |
|
|
|
— |
|
|
|
— |
|
|
|
8.7 |
|
Depreciation and amortization (included in cost of revenue) |
|
5.0 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5.0 |
|
Other operating expense |
|
— |
|
|
|
— |
|
|
|
0.2 |
|
|
|
— |
|
|
|
— |
|
|
|
0.2 |
|
Interest expense |
|
4.1 |
|
|
|
— |
|
|
|
4.7 |
|
|
|
25.0 |
|
|
|
— |
|
|
|
33.8 |
|
Loss on early extinguishment or restructuring of debt |
|
1.5 |
|
|
|
— |
|
|
|
0.9 |
|
|
|
10.0 |
|
|
|
— |
|
|
|
12.4 |
|
Other (income) expense, net |
|
(3.9 |
) |
|
|
— |
|
|
|
0.8 |
|
|
|
(0.7 |
) |
|
|
— |
|
|
|
(3.8 |
) |
Income tax expense |
|
1.2 |
|
|
|
— |
|
|
|
— |
|
|
|
2.5 |
|
|
|
— |
|
|
|
3.7 |
|
Noncontrolling interest |
|
0.2 |
|
|
|
(4.0 |
) |
|
|
(1.0 |
) |
|
|
— |
|
|
|
(0.5 |
) |
|
|
(5.3 |
) |
Share-based compensation expense |
|
— |
|
|
|
0.1 |
|
|
|
0.3 |
|
|
|
0.9 |
|
|
|
— |
|
|
|
1.3 |
|
Nonrecurring items |
|
0.4 |
|
|
|
— |
|
|
|
— |
|
|
|
0.5 |
|
|
|
— |
|
|
|
0.9 |
|
COVID-19 costs |
|
7.9 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7.9 |
|
Acquisition and disposition costs |
|
1.7 |
|
|
|
— |
|
|
|
0.2 |
|
|
|
2.1 |
|
|
|
— |
|
|
|
4.0 |
|
Adjusted EBITDA |
$ |
25.2 |
|
|
$ |
(12.3 |
) |
|
$ |
3.5 |
|
|
$ |
(9.7 |
) |
|
$ |
0.8 |
|
|
$ |
7.5 |
|
INNOVATE (NYSE:VATE)
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Von Mär 2024 bis Apr 2024
INNOVATE (NYSE:VATE)
Historical Stock Chart
Von Apr 2023 bis Apr 2024