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]

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].

- Life Sciences: MediBeacon Transdermal GFR ("TGFR") system received FDA approval to assess kidney - Infrastructure: DBM Global fourth quarter revenue of $225.7 million - function - - Spectrum: Broadcasting achieved double-digit revenue growth in the fourth quarter and full year 2024 - NEW YORK, March 31, 2025 (GLOBE NEWSWIRE) -- INNOVATE Corp. ("INNOVATE" or the "Company") (NYSE: VATE) announced today its consolidated results for the fourth quarter. Financial Summary | (in millions, except per share amount ...

Core Viewpoint - INNOVATE Corp. will release its financial results for Q4 and full year 2024 on March 31, 2025, after market close, followed by a conference call to discuss these results and the company's strategy [1]. Group 1: Financial Results Announcement - The financial results for the fourth quarter and full year 2024 will be announced on March 31, 2025 [1]. - An earnings conference call will take place on the same day at 4:30 p.m. ET to review the results and operations [1]. Group 2: Conference Call Details - The conference call will be accessible via a domestic dial-in number (1-877-704-4453) and an international number (1-201-389-0920) [3]. - A replay of the conference call will be available approximately three hours after the call and can be accessed until April 14, 2025 [3]. Group 3: Company Overview - INNOVATE Corp. operates in three key areas: Infrastructure, Life Sciences, and Spectrum, employing around 4,000 people [4]. - The company is committed to stakeholder capitalism and focuses on best-in-class assets [4].

FDA Approval and Product Overview - The FDA has approved INNOVATE Corp's MediBeacon TGFR for assessing kidney function in patients with normal or impaired renal function [1] - The TGFR system includes a sensor, monitor, and Lumitrace injection, which measures kidney function by tracking the clearance rate of a fluorescent agent [2] - The system records fluorescence intensity transdermally at 2.5 readings per second and displays average session tGFR readings at the patient's bedside [2] Clinical Advantages and Validation - The TGFR eliminates the need for blood draws or urine analysis, unlike current GFR assessment methods [3] - It has been validated for use in patients with stable kidney function at the point of care [3] - The TGFR met its primary efficacy endpoint with a P30 value of 94%, indicating high accuracy in GFR estimation [5] - Clinical studies showed no serious or severe adverse events [6] Industry Impact and Expert Opinions - The TGFR represents a significant milestone for nephrology, offering a non-invasive method to assess kidney function [4] - Experts highlight its potential to improve clinical practice, particularly in cases where current methods are suboptimal [4] - Chronic Kidney Disease (CKD) affects over 800 million people globally and is a leading cause of mortality [7] Company and Product Background - INNOVATE Corp operates in Infrastructure, Life Sciences, and Spectrum, employing approximately 4,000 people [8] - MediBeacon, a subsidiary, specializes in fluorescent tracer agents and transdermal detection technology, holding over 55 U.S. patents and 215 worldwide [9] - Lumitrace injection, a key component of the TGFR, has been administered to over 850 subjects and is designed for non-invasive GFR measurement [10] Technical and Safety Information - The TGFR is not approved for patients with GFR <15ml/min/1.73m2 or >120ml/min/1.73m2, or for those on dialysis [13] - Lumitrace injection may interfere with clinical laboratory tests, and its use is contraindicated in patients requiring such tests within 72 hours [17]

Core Insights - R2 Technologies has achieved significant milestones in 2024, positioning itself for substantial growth in the aesthetics and wellness sectors through key partnerships and brand momentum [1][6] Sales Performance - The company recorded a 294% increase in worldwide Glacial Skin system unit sales compared to the previous year, celebrating the one-year anniversary of the Glacial fx platform launch [2] - Providers using Glacial Skin systems experienced a 168% increase in patients treated and a 58% increase in average monthly utilization per provider compared to the previous year [4] Partnerships and Collaborations - R2 Technologies has established partnerships with leading skincare brands such as Epicutis, iS CLINICAL, BABOR, and BioSkin Aesthetics, enhancing the personalization of Glacial Skin offerings [3] - A notable partnership with Woodhouse Spas, a leading luxury spa brand with nearly 100 locations, has expanded the company's reach into wellness and skincare clinics [2][4] Product Innovation - The introduction of the Glacialist Ambassador Program aims to advance CryoAesthetics® technology and best practices through a community of expert professionals [5] - The company launched a colder version of the Glacial Glide Rx protocol, broadening the treatment capabilities of the Glacial Rx system for skin inflammation cases [4] Brand Awareness and Social Media Impact - R2 Technologies experienced a 4,086% increase in social media mentions in Q3, achieving record highs in impressions across platforms like Instagram, TikTok, Facebook, and LinkedIn [5]

Financial Data and Key Metrics Changes - Consolidated revenues for Q3 2024 were $242.2 million, a decrease of 35.5% compared to $375.3 million in the prior year period [21] - Adjusted EBITDA for Q3 2024 was $16.8 million, down from $22.1 million in the prior year period [22] - Net loss attributable to common stockholders for Q3 2024 was $15.3 million or $1.18 per fully diluted share, compared to a net loss of $7.3 million or $0.93 per fully diluted share in the prior year [21] Business Line Data and Key Metrics Changes - DBM Global achieved revenues of $232.8 million, a decrease of 37% from $369.3 million in the prior year quarter [23] - Life Sciences revenue increased 400% to $3 million from $600,000 in the prior year quarter, primarily driven by R2's sales [27] - Spectrum reported revenue of $6.4 million, an increase of $1 million compared to the third quarter of 2023 [29] Market Data and Key Metrics Changes - DBM's total adjusted backlog increased to $1.1 billion at the end of Q3 2024, with a high volume of bidding opportunities in the commercial market [10] - R2's worldwide top line sales reached $5.7 million year-to-date, a record high, with system unit sales growing 416% from Q3 2023 to Q3 2024 [11][12] - Spectrum's adjusted EBITDA improved to $1.7 million in Q3 2024, a significant increase from a loss of $300,000 in the prior year quarter [29] Company Strategy and Development Direction - The company is focused on addressing its capital structure and exploring strategic alternatives with non-cash flowing businesses [19] - Management expressed confidence in DBM's ability to win projects with good profit margins despite some delays in project releases [36] - R2 plans to expand its international footprint and has secured a robust backlog of over 60 systems worldwide [12] Management Comments on Operating Environment and Future Outlook - Management expects full-year results to be slightly lower than last year, with the first half outperforming the second half of 2024 [9] - The company remains optimistic about the overall M&A market and is encouraged by positive market indicators [19] - Management highlighted the strong operational results across all segments, with R2 showing significant growth and Spectrum improving profitability [18] Other Important Information - The company regained compliance with NYSE listing requirements following a reverse stock split [31] - As of September 30, 2024, total principal outstanding indebtedness was $699.2 million, down from $722.8 million at the end of 2023 [32] Q&A Session Summary Question: Update on FDA communication regarding MediBeacon - Management confirmed ongoing communication with the FDA and is working towards approval [34][35] Question: Insights on DBM Global's year-end guidance and 2025 outlook - Management indicated it is too soon to discuss 2025 revenue and EBITDA profiles but expressed confidence in DBM's backlog and market activity [36] Question: Exploration of avenues for refinancing and capital structure - Management is exploring strategic alternatives for non-cash flowing assets and is satisfied with the performance of operating subsidiaries [38]

Financial Restructuring and Capital Management - The company conducted a 1-for-10 reverse stock split, reducing outstanding common shares from 130,529,931 to 13,166,057[205]. - A $19.0 million rights offering was initiated, allowing shareholders to purchase shares at $0.70 each, resulting in total gross proceeds of $35.0 million from the rights offering and concurrent private placement[206][208]. - The company engaged in a strategic process that included evaluating acquisitions and divestitures to optimize its capital structure[202]. - A new 20% note with an aggregate principal amount of $20.0 million was issued, with an exit fee structure that could result in total exit fees of $7.9 million if unpaid by maturity[218][219]. - The company made $5.0 million in scheduled payments on a 4.0% note, which was fully redeemed on April 2, 2024[217]. - The company amended its Second Amended and Restated 2014 Omnibus Equity Award Plan to increase the number of shares available for issuance to 1,300,000[213]. - The company received $25.0 million from Lancer Capital as an equity advance prior to the rights offering settlement[208]. - The company expects to use proceeds from the rights offering and private placement for general corporate purposes, including debt service and working capital[211]. - The company has substantial doubt about its ability to continue as a going concern due to upcoming debt maturities and cross-default provisions[298][299]. - Management is exploring refinancing, asset sales, and raising additional capital to alleviate financial conditions[301]. Revenue and Operational Performance - Pansend's total revenue for the three months ended September 30, 2024, decreased by $133.1 million to $242.2 million from $375.3 million for the same period in 2023[227]. - Revenue for the nine months ended September 30, 2024, decreased by $191.5 million to $870.5 million from $1,062.0 million for the same period in 2023[227]. - The decrease in revenue was primarily driven by the Infrastructure segment, which was partially offset by increases in the Life Sciences and Spectrum segments[227]. - Income from operations for the three months ended September 30, 2024, decreased by $4.8 million to $5.9 million from $10.7 million for the same period in 2023[229]. - Income from operations for the nine months ended September 30, 2024, increased by $25.0 million to $37.5 million from $12.5 million for the same period in 2023[230]. - Interest expense for the three months ended September 30, 2024, increased by $4.1 million to $21.2 million from $17.1 million for the same period in 2023[231]. - Interest expense for the nine months ended September 30, 2024, increased by $5.9 million to $54.9 million from $49.0 million for the same period in 2023[232]. - Other income, net for the three months ended September 30, 2024, increased by $1.8 million to $2.2 million from $0.4 million for the same period in 2023[236]. - Other income, net for the nine months ended September 30, 2024, decreased by $16.0 million to $1.2 million from $17.2 million for the same period in 2023[237]. Segment Performance - Revenue for the Infrastructure Segment for the three months ended September 30, 2024, decreased by $136.5 million to $232.8 million from $369.3 million for the same period in 2023[242]. - Cost of revenue for the Infrastructure Segment for the three months ended September 30, 2024, decreased by $124.0 million to $189.1 million from $313.1 million for the same period in 2023[243]. - Revenue for the Life Sciences Segment for the three months ended September 30, 2024, increased by $2.4 million to $3.0 million from $0.6 million for the same period in 2023[249]. - Revenue for the nine months ended September 30, 2024, for the Life Sciences Segment increased by $3.9 million to $5.7 million from $1.8 million for the same period in 2023[250]. - Cost of revenue for the Life Sciences Segment for the three months ended September 30, 2024, increased by $1.5 million to $2.0 million from $0.5 million for the same period in 2023[251]. - Net income from the Infrastructure segment increased by $11.8 million to $31.6 million for the nine months ended September 30, 2024, compared to $19.8 million for the same period in 2023[277]. - Net loss from the Life Sciences segment increased by $5.0 million to $14.3 million for the nine months ended September 30, 2024, compared to a loss of $9.3 million for the same period in 2023[278]. - Net loss from the Spectrum segment decreased by $1.4 million to $15.4 million for the nine months ended September 30, 2024, compared to a loss of $16.8 million for the same period in 2023[279]. Cash Flow and Liquidity - Cash and cash equivalents on a consolidated basis decreased to $51.0 million as of September 30, 2024, from $80.8 million as of December 31, 2023[285]. - Total principal indebtedness decreased by $23.6 million to $699.2 million as of September 30, 2024, compared to $722.8 million as of December 31, 2023[287]. - Cash used in operating activities was $32.3 million for the nine months ended September 30, 2024, an improvement of $2.4 million compared to $34.7 million for the same period in 2023[328]. - Cash used in investing activities was $4.0 million for the nine months ended September 30, 2024, a decrease of $45.2 million compared to cash provided by investing activities of $41.2 million for the same period in 2023[329]. - Cash provided by financing activities was $6.4 million for the nine months ended September 30, 2024, an improvement of $37.0 million compared to cash used in financing activities of $30.6 million for the same period in 2023[331]. Risks and Challenges - The company reported significant risks related to its subsidiaries' ability to generate sufficient net income and cash flows for upstream distributions[339]. - The company highlighted the impact of substantial indebtedness and potential future financing obligations on its operations[342]. - The company faces challenges in hiring and retaining qualified personnel, which could affect its operational efficiency[342]. - Supply chain disruptions and labor shortages have led to increased costs and could impact project timelines[344]. - The company is dependent on distributions from subsidiaries to fund operations and meet obligations[342]. - The company anticipates potential impacts from geopolitical events, including military actions in the Middle East and Ukraine, on financial markets[343]. Strategic Initiatives - The company is focused on identifying strategic acquisition opportunities to enhance growth and market position[343]. - The company is implementing cost reduction initiatives to improve margins and cash flow[343]. - The company is navigating a higher interest rate environment, which may affect its financing costs[342]. - The company is committed to maintaining compliance with New York Stock Exchange listing standards amid ongoing operational challenges[343].