Core Insights - INNOVATE Corp. reported a consolidated revenue of $274.2 million for Q1 2025, a decrease of 13.0% compared to $315.2 million in Q1 2024, primarily driven by the Infrastructure segment [2][8] - The company experienced a net loss attributable to common stockholders of $24.8 million, or $1.89 per share, compared to a net loss of $17.7 million, or $2.21 per share, in the prior year [2][12] - Adjusted EBITDA for Q1 2025 was $7.2 million, down 43.8% from $12.8 million in Q1 2024, reflecting challenges in both the Life Sciences and Infrastructure segments [2][14] Infrastructure Segment - DBM Global reported Q1 2025 revenue of $264.9 million, a decrease of 14.0% from $307.9 million in the prior year [4][9] - The adjusted backlog for DBM Global increased to $1.4 billion, up from $1.0 billion as of December 31, 2024, indicating strong project acquisition [5][4] - Gross margin improved to 15.6%, an increase of approximately 110 basis points year-over-year, while adjusted EBITDA margin rose to 6.3%, an increase of approximately 40 basis points [4][5] Life Sciences Segment - MediBeacon's Transdermal GFR System received FDA approval, enhancing growth prospects in the Life Sciences segment [3][10] - R2 Technologies reported a revenue of $3.1 million, a 210% increase compared to $1.0 million in the prior year, driven by increased unit sales [10][3] - The Life Sciences segment's adjusted EBITDA was negative at $(8.7) million, a decrease from $(4.2) million in the prior year, primarily due to higher equity method losses from MediBeacon [14][12] Spectrum Segment - The Spectrum segment reported revenue of $6.2 million, slightly down from $6.3 million in the prior year [10][9] - The company is exploring commercial opportunities in datacasting, with expectations to generate revenue by the end of 2025 [10][3] Financial Performance - Total adjusted EBITDA for Q1 2025 was $7.2 million, down from $12.8 million in Q1 2024, primarily due to declines in the Life Sciences and Infrastructure segments [14][12] - The company had cash and cash equivalents of $33.3 million as of March 31, 2025, down from $48.8 million at the end of 2024 [14][30] - The total liabilities increased to $1,036.9 million as of March 31, 2025, compared to $1,034.8 million at the end of 2024 [30][31]

Core Viewpoint - INNOVATE Corp. will release its financial results for Q1 2025 on May 6, 2025, after market close, followed by an earnings conference call at 4:30 p.m. ET [1]. Company Overview - INNOVATE Corp. operates in three key areas of the new economy: Infrastructure, Life Sciences, and Spectrum, employing approximately 3,100 people across its subsidiaries [4]. Conference Call Details - The conference call will be accessible via domestic dial-in at 1-877-704-4453 and international dial-in at 1-201-389-0920 [3]. - A replay of the conference call will be available approximately three hours after the call ends, accessible through domestic dial-in at 1-844-512-2921 and international dial-in at 1-412-317-6671 until May 20, 2025 [3]. - Interested parties can listen to the live call through INNOVATE's Investor Relations website, with registration required at least 15 minutes prior to the start [2]. Investor Contact - For investor inquiries, the contact is Anthony Rozmus from Solebury Strategic Communications, reachable at ir@innovatecorp.com or (212) 235-2691 [5].

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]

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 performance [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 113% increase in worldwide system unit sales in Q4 2024 [13] - DBM Global's reported backlog was $1 billion, with an adjusted backlog of $1.1 billion at the end of Q4 2024 [35] - Spectrum's fourth quarter adjusted EBITDA increased to $2.3 million from $1.1 million in the prior year quarter [37] 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 with Jaffrey's Financial Group to maximize shareholder value following FDA approval [11] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential applications for the TGFR system and its impact on the market [11] - The company is cautiously monitoring the political landscape and its potential impact on construction material costs due to tariffs and inflation [21] - Management remains confident in DBM's ability to capitalize on opportunities driven by growth 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 ended Q4 2024 with $48.8 million in cash and cash equivalents, down from $80.8 million at the end of 2023 [39] Q&A Session Summary Question: Congratulations on the FDA approval of MetaBeacon. How deep into discussions is Jefferies right now? - Management indicated that discussions with medical device and pharmaceutical companies have been ongoing since the end of 2023, with FDA approval being a critical milestone [47] Question: Is the $400 million valuation from the previous equity injection still relevant in current discussions? - Management noted that the valuation was set back in 2019 and the current discussions will need to see how the process pans out [49] Question: How might tariffs impact the MetaBeacon business model and DBM Global's adjusted backlog? - Management stated that initial rollout and approval are in the U.S., and they do not foresee a significant impact from tariffs at this time [51][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].

Core Insights - INNOVATE Corp. reported a consolidated revenue of $236.6 million for Q4 2024, a decrease of 34.5% compared to $361.0 million in Q4 2023, primarily driven by the Infrastructure segment [2][8] - The company experienced a net loss attributable to common stockholders of $16.9 million, or $1.29 per share, compared to a loss of $9.6 million, or $1.22 per share, in the prior year quarter [2][11] - The Infrastructure segment's revenue decreased to $225.7 million, down 36.2% from $353.8 million in the prior year quarter, while the Life Sciences and Spectrum segments showed growth [4][11] Financial Summary - Total Adjusted EBITDA for Q4 2024 was $15.0 million, down from $21.5 million in Q4 2023, reflecting challenges in the Infrastructure segment [14][15] - The company reduced its total debt by $54.5 million year-over-year, indicating improved financial health [3] Segment Performance Infrastructure - DBM Global's revenue for Q4 2024 was $225.7 million, a decrease of 36.2% year-over-year, with an adjusted backlog of $1.1 billion as of December 31, 2024 [4][5] - Gross margin improved to 18.2%, an increase of approximately 180 basis points year-over-year, despite a decrease in Adjusted EBITDA margin [4] Life Sciences - MediBeacon's TGFR system received FDA approval in January 2025, marking a significant milestone for the Life Sciences segment [10] - R2 Technologies reported a 113% increase in worldwide system unit sales in Q4 2024 compared to Q4 2023 [10] Spectrum - Broadcasting segment achieved double-digit revenue growth in Q4 2024, with revenue of $6.8 million compared to $5.7 million in the prior year quarter [10][11] Operational Highlights - The company announced collaborations in the Life Sciences segment with Woodhouse Spas and leading skincare brands, indicating strong market momentum [3] - Successful new network launches in the Spectrum segment contributed to revenue growth, despite some terminations of smaller networks [10]

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]