INNOVATE Corp. Q1 2025 Earnings Release Supplement May 6, 2025 INNOVATE Corp. ™ 2025 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 statements." Generally, forward-looking statements include information describing actions, events, results, strategies and expectat ...

INNOVATE (VATE) Q1 2025 Earnings Call May 06, 2025 04:30 PM ET Speaker0 Good afternoon, and welcome to Innovate's First Quarter twenty twenty five Earnings Conference Call. All participants will be in a listen only mode. After the prepared remarks and presentation, there will be a question and answer session. Please note, this event is being recorded. I would now like to turn the conference call over to Anthony Rosmus with Investor Relations. Please go ahead. Speaker1 Good afternoon. Thank you for being wit ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION INNOVATE CORP. (Exact name of registrant as specified in its charter) FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. WASHINGTON, D.C. 20549 Commission File No. 001-35210 Delaware 54-1708481 (State or other jurisdiction of incorporation or organization) 295 Madison Ave ...

FOR IMMEDIATE RELEASE INNOVATE Corp. Announces First Quarter 2025 Results - Infrastructure: DBM Global first quarter revenue of $264.9 million - - Life Sciences: MediBeacon Transdermal GFR ("TGFR") System Received FDA Approval to Assess Kidney Function - ® - Spectrum: Expects commercial opportunities in datacasting to generate revenue by the end of the year - NEW YORK, NY, May 6, 2025 - 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, | | | --- | --- | --- | --- | --- | --- | | | | | | | Increase / | | | | 2025 | | 2024 | (Decrease) | | Revenue | $ | 274.2 | $ | 315.2 | (13.0)% | | Net loss attributable to common stockholders and participating | | | | | | | preferred stockholders | $ | (24.8) | $ | (17.7) | (40.1)% | | Basic and diluted loss per share attributable to common | | | | | | | stockholders | $ | (1.89) | $ | (2.21) | 14.5% | | Tota ...

NEW YORK, April 16, 2025 (GLOBE NEWSWIRE) -- INNOVATE Corp. (NYSE: VATE) (“INNOVATE” or the “Company”) announced today that it will release its financial results for the first quarter 2025 on Tuesday, May 6, 2025, after market close. The Company will host an earnings conference call reviewing these results, its operations and strategy on the same day, beginning at 4:30 p.m. ET. Dial-in instructions for the conference call and the replay are outlined below. This conference call will also be broadcast live ov ...

Financial Data and Key Metrics Changes - Consolidated revenue for Q4 2024 was $236.6 million, a decrease of 34.5% compared to $361 million in the prior year period [31] - Adjusted EBITDA for Q4 2024 was $15 million, down from $21.5 million in the prior year period [32] - Net loss attributable to common stockholders for Q4 2024 was $16.9 million, or $1.29 per fully diluted share, compared to a net loss of $9.6 million, or $1.22 per fully diluted share in the prior year [32] Business Line Data and Key Metrics Changes - Life Sciences revenue increased 173.3% to $4.1 million from $1.5 million in the prior year quarter, primarily driven by R2's sales [36] - R2 achieved record top-line revenues of almost $10 million for the full year 2024, a 197% increase over 2023 [12] - Infrastructure segment revenue decreased 36.2% to $225.7 million from $353.8 million in the prior year quarter [33] - Spectrum's revenue for Q4 2024 was $6.8 million, an increase of 1.1 million compared to the fourth quarter of 2023 [37] Market Data and Key Metrics Changes - R2's system unit sales in North America grew 238% year-over-year, contributing to a combined worldwide system unit sales growth of 113% in Q4 2024 [13] - DBM Global ended the year with an adjusted backlog of $1.1 billion, compared to $1.2 billion at the end of 2023 [35] Company Strategy and Development Direction - The main objective for 2025 is to address the capital structure and near-term maturity of debt obligations [8] - The company is focused on leveraging valuable assets prior to debt maturities to achieve a sustainable capital structure [10] - MetaBeacon is exploring strategic alternatives and has engaged Jefferies Financial Group for potential monetization [11] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the pipeline and backlog levels, particularly in the infrastructure segment [19] - There is a cautious stance towards the cost of construction materials due to political uncertainties, but no material impact on financials is anticipated [21] - The company is encouraged by recent milestones and believes it is well-positioned to capitalize on growth opportunities in cloud computing and AI [20] Other Important Information - Total consolidated debt decreased by $54.5 million compared to last year, primarily due to improved working capital [29] - The company had $48.8 million in cash and cash equivalents at the end of Q4 2024, down from $80.8 million at the end of 2023 [39] Q&A Session Summary Question: Can you provide an update on discussions with Jefferies regarding MetaBeacon? - Management indicated that discussions with Jefferies have been ongoing since late 2023, with FDA approval being a critical milestone [47] Question: How does the valuation context from 2019 impact current discussions? - Management noted that the valuation from 2019 is a reference point, but the current discussions will depend on how the process unfolds [49] Question: What impact might tariffs have on DBM Global's backlog and margins? - Management stated that DBM typically locks in prices with mills when bidding, so they do not foresee a significant impact on backlog or margins at this time [55]

INNOVATE Corp. (VATE) Q4 2024 Earnings Conference Call March 31, 2025 04:30 PM ET Company Participants Conference Call Operator - OperatorNeil Sika - Investor RelationsPaul Voigt - Interim CEOMike Sena - CFOQ&A Coordinator - Call ModeratorConference Call Operator - Operator/Host Conference Call Participants Brian Charles - Analyst, RW Press Conference Call Operator Good afternoon, and welcome to Innovate Corp's fourth quarter and full year 2024 earnings conference call. All participants will be in listen-on ...

Revenue and Financial Performance - For the year ended December 31, 2024, total revenues reached $1,071.6 million, with the largest revenue contributions from SSC at $404.6 million (37.8%), Banker Steel at $312.7 million (29.2%), and GrayWolf at $314.1 million (29.3%) [34] - DBMG's sales pipeline includes approximately $6.6 billion in potential revenue generation, indicating strong future growth prospects [35] - As of December 31, 2024, DBMG's total backlog was $957.2 million, with minimal bonding requirements at 19.2% of the backlog [37] - DBMG's two largest customers represented approximately 25.5% of its revenues in 2024, a decrease from 41.3% in 2023, suggesting improved customer diversification [34] Operational Efficiency - The company operates with a typical facility utilization rate ranging from 84% to 94%, showcasing efficient resource management [35] - DBMG aims to diversify its revenue base by targeting projects with higher margins and less risk of large margin fluctuations [32] - The company employs 3,135 full-time and 26 part-time employees, indicating a robust workforce to support its operations [27] Market and Competitive Position - The company is focused on expanding its operations in Infrastructure, Life Sciences, and Spectrum, which are well-positioned to capitalize on current economic trends [21] - DBMG's operations are affected by various federal, state, and local environmental protection laws, which have become increasingly stringent [54] - The company faces significant competition in the medical technology and aesthetic product markets, with many competitors offering a broader range of products [67][69] Technology and Innovation - DBMG utilizes advanced technologies such as BIM and digital engineering to enhance project delivery and reduce costs [39] - R2 Technologies' Glacial® platform is a leader in CryoAesthetics™ medical devices, aimed at reducing inflammation and brightening dark spots [58] - R2 Technologies has received 510(k) clearance from the FDA for Glacial Rx, allowing it to market the product for various dermatologic procedures [71] - The company holds a patent portfolio of 128 issued patents and 11 pending applications as of December 31, 2024, primarily related to its CryoModulation technology [77] Workforce and Employment - DBMG's workforce comprised 3,065 full-time and 23 part-time employees as of December 31, 2024 [51] - As of December 31, 2024, R2 Technologies employed 28 sales force members in the U.S. and Canada, with a total of 42 full-time employees [64] - The company has established quality management certifications, including EN ISO 13485:2016, to comply with international regulatory requirements [75] Broadcasting Operations - Broadcasting operated 256 stations as of December 31, 2024, including 3 Full-Power stations, 53 Class A stations, and 200 Low Power Television (LPTV) stations [91] - Broadcasting's stations can collectively broadcast approximately 1,700 sub-channels and reach 113 markets in the U.S. and Puerto Rico, including 34 of the top 35 markets [91] - Broadcasting's strategy focuses on attracting high-quality content providers for nationwide distribution, leveraging its national footprint and cloud infrastructure for premium pricing [105] Future Growth and Strategic Initiatives - DBMG is open to pursuing acquisitions outside its current operating segments to identify undervalued or fairly valued businesses [22] - Broadcasting is exploring the use of fifth-generation mobile network (5G) channels to deliver high-end content over-the-air to more homes and mobile devices [90] - Broadcasting is exploring commercial opportunities in datacasting, which may provide incremental revenue over the next year [110] Risk Management and Compliance - DBMG maintains commercial general liability insurance of $2.0 million per occurrence and $4.0 million in the aggregate [55] - The company does not anticipate material adverse effects from compliance with environmental regulations, although future changes may require additional expenditures [113] - The FCC regulates all local television broadcasters, and the company must renew its licenses every eight years, with a weighted-average renewal period of 5.4 years as of December 31, 2024 [107]

Financial Performance - INNOVATE Corp. reported consolidated revenue of $236.6 million for Q4 2024, a decrease of 34.5% compared to $361.0 million in Q4 2023[9]. - Net loss attributable to common stockholders for Q4 2024 was $16.9 million, or $1.29 per share, compared to a net loss of $9.6 million, or $1.22 per share, in Q4 2023[11]. - Total Adjusted EBITDA for Q4 2024 was $15.0 million, a decrease of 30.2% from $21.5 million in Q4 2023[2]. - Total revenue for Q4 2024 was $236.6 million, a decrease of 34.5% compared to $361.0 million in Q4 2023[32]. - Adjusted EBITDA for Q4 2024 was $15.0 million, down 30.2% from $21.5 million in Q4 2023[15]. - Net loss attributable to INNOVATE Corp. for Q4 2024 was $16.6 million, compared to a net loss of $9.3 million in Q4 2023[32]. - The total Adjusted EBITDA for the year ended December 31, 2024, was $71.3 million, an increase of 9.8% from $65.0 million in 2023[15]. - For the year ended December 31, 2024, net income attributable to INNOVATE Corp. was $40.3 million, compared to $28.7 million in 2023, an increase of 40.0%[39]. - Adjusted EBITDA for the year ended December 31, 2024, was $71.3 million, compared to $65.0 million in 2023, an increase of 9.6%[39]. Segment Performance - The Infrastructure segment generated revenue of $225.7 million in Q4 2024, down 36.2% from $353.8 million in the prior year quarter[7]. - The Infrastructure segment reported an Adjusted EBITDA of $17.4 million in Q4 2024, a decrease of 42.0% from $30.0 million in Q4 2023[15]. - Life Sciences segment had an Adjusted EBITDA of $(2.5) million in Q4 2024, an improvement of 64.8% from $(7.1) million in Q4 2023[15]. - Broadcasting segment achieved revenue of $6.8 million in Q4 2024, up from $5.7 million in the prior year quarter, with an adjusted EBITDA of $2.3 million[6]. - R2 Technologies reported a 113% increase in worldwide system unit sales in Q4 2024 compared to Q4 2023[7]. Financial Health - INNOVATE Corp. reduced total debt by $54.5 million year-over-year, indicating improved financial health[4]. - Cash and cash equivalents as of December 31, 2024, were $48.8 million, down from $80.8 million as of December 31, 2023[16]. - Total assets decreased from $1,043.6 million in 2023 to $891.1 million in 2024, a decline of approximately 14.6%[35]. - Cash and cash equivalents dropped significantly from $80.8 million in 2023 to $48.8 million in 2024, a decrease of 39.6%[35]. - Total liabilities decreased from $1,179.9 million in 2023 to $1,034.8 million in 2024, a reduction of approximately 12.3%[35]. - The current portion of debt obligations increased significantly from $30.5 million in 2023 to $162.2 million in 2024, an increase of 431.1%[35]. - The company reported a significant increase in interest expense, rising from $68.2 million in 2023 to $74.5 million in 2024, an increase of 9.2%[39]. - The accumulated deficit increased from $487.3 million in 2023 to $521.9 million in 2024, reflecting a decline of 7.1%[35]. Future Outlook - The company anticipates strong project execution in 2025, supported by a robust backlog and new product approvals[3]. - The company plans to continue focusing on new product sales in the Life Sciences segment and expanding its market presence[25]. - The adjusted backlog for the Infrastructure segment was $1.1 billion as of December 31, 2024, compared to $1.2 billion a year earlier[3]. Employment - The company employed approximately 3,100 people across its subsidiaries[19]. Operating Expenses - Operating expenses for Q4 2024 were $45.8 million, slightly down from $45.7 million in Q4 2023[32].