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].

Revenue Performance - INNOVATE Corp. reported consolidated revenue of $242.2 million for Q3 2024, a decrease of 35.5% compared to $375.3 million in Q3 2023[11] - The Infrastructure segment generated revenue of $232.8 million, down 37.0% from $369.3 million in the prior year quarter, with a net income of $6.2 million compared to $10.8 million[4] - Broadcasting revenue increased to $6.4 million in Q3 2024 from $5.4 million in the prior year quarter, with adjusted EBITDA improving to $1.7 million from a loss of $0.3 million[8] - Total revenue for Q3 2024 was $242.2 million, a decrease of 35.5% from $375.3 million in Q3 2023[35] Net Income and Loss - INNOVATE reported a net loss attributable to common stockholders of $15.3 million, or $1.18 per share, compared to a net loss of $7.3 million, or $0.93 per share, in Q3 2023[11] - Net loss attributable to INNOVATE Corp. for Q3 2024 was $15.0 million, compared to a net loss of $7.0 million in Q3 2023[35] - The company reported a net income loss of $25.9 million for the nine months ended September 30, 2023[42] Adjusted EBITDA - Total adjusted EBITDA for Q3 2024 was $16.8 million, down from $22.1 million in the prior year quarter, primarily due to lower revenue in the Infrastructure segment[16] - Adjusted EBITDA for Q3 2024 was $16.8 million, down 24% from $22.1 million in Q3 2023[17] - Adjusted EBITDA for INNOVATE Corp. was $43.5 million, with significant contributions from the Infrastructure segment at $70.6 million, while the Life Sciences segment reported a loss of $16.0 million[42] Cash and Assets - Cash and cash equivalents as of September 30, 2024, were $51.0 million, down from $80.8 million as of December 31, 2023[17] - Total assets decreased from $1,043.6 million on December 31, 2023, to $897.2 million on September 30, 2024, representing a decline of approximately 14%[37] - Total current assets decreased from $517.9 million to $399.9 million, a decline of about 23%[37] - Accounts receivable, net, decreased from $278.4 million to $190.8 million, a reduction of about 31%[37] - Cash and cash equivalents decreased from $80.8 million to $51.0 million, a decline of approximately 37%[37] Liabilities and Financial Burden - Current liabilities increased from $413.8 million to $468.0 million, an increase of about 13%[37] - Debt obligations decreased significantly from $679.3 million to $502.4 million, a reduction of approximately 26%[37] - Interest expense totaled $49.0 million, indicating a substantial financial burden on the company[42] Operational Performance - Operating expenses for Q3 2024 were $42.3 million, down from $48.0 million in Q3 2023[35] - The Life Sciences segment reported an Adjusted EBITDA decrease of $3.0 million in Q3 2024 compared to a loss of $4.3 million in Q3 2023[17] - The Infrastructure segment's Adjusted EBITDA decreased by $9.9 million, from $30.8 million in Q3 2023 to $20.9 million in Q3 2024[17] Strategic Initiatives - The company anticipates continued growth in the Life Sciences segment with new product sales and FDA approval processes[29] - The company plans to explore strategic acquisitions and business opportunities to enhance growth and market presence[30] - New network launches in Broadcasting are expected to drive higher revenue growth, with FreeTV's network, Defy, launching in Q3 2024[9] Other Financial Metrics - Non-controlling interest increased from $13.8 million to $22.0 million, reflecting a growth of approximately 59%[37] - The accumulated deficit increased from $487.3 million to $505.3 million, indicating a worsening financial position[37] - The company incurred restructuring and exit costs amounting to $2.2 million, reflecting ongoing operational adjustments[42] - Non-controlling interest losses were recorded at $2.4 million, impacting overall profitability[42] - Depreciation and amortization expenses were $15.9 million, contributing to the overall cost structure[42] - The company faced acquisition and disposition costs of $2.8 million, indicating ongoing strategic activities[42] - Other income expenses netted a loss of $17.2 million, highlighting challenges in financial management[42] - Legacy accounts receivable write-offs amounted to $2.2 million, affecting asset quality[42] - The company reported a tax benefit of $3.2 million, providing some relief to the overall financial performance[42]

Core Viewpoint - INNOVATE Corp. will release its financial results for Q3 2024 on November 6, 2024, after market close, followed by an earnings conference call at 4:30 p.m. ET [1]. Group 1: Financial Results Announcement - The financial results for Q3 2024 will be announced on November 6, 2024, after market close [1]. - An earnings conference call will take place on the same day at 4:30 p.m. ET to discuss the results, operations, and strategy [1]. Group 2: Conference Call Details - The conference call will be accessible via a domestic dial-in number (1-800-717-1738) and an international dial-in number (1-646-307-1865) [3]. - A replay of the conference call will be available approximately three hours after the call ends, accessible through a domestic dial-in (1-844-512-2921) and an international dial-in (1-412-317-6671) until November 20, 2024 [3]. Group 3: Company Overview - INNOVATE Corp. operates in three key areas of the new economy: Infrastructure, Life Sciences, and Spectrum [4]. - The company is committed to stakeholder capitalism and employs approximately 4,000 people across its subsidiaries [4].

NEW YORK, Sept. 03, 2024 (GLOBE NEWSWIRE) -- INNOVATE Corp. (NYSE: VATE) ("INNOVATE" or the "Company") announced today that it has received a letter from the New York Stock Exchange ("NYSE") dated August 27, 2024 (the "Compliance Notice"), notifying the Company that it is no longer considered below the NYSE's continued listing criterion of a minimum average share price of US $1.00 over a 30 trading-day period (the "NYSE Minimum Price Requirement"). "The INNOVATE team is pleased to share that we have receive ...

INNOVATE Corp. INNOVATE Q2 2024 Earnings Release Supplement August 7, 2024 INNOVATE Corp. ™ 2024 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 ...

- Infrastructure: DBM Global achieved second quarter revenue of $305.2 million - - Life Sciences: R2 achieved record Glacial system sales in North America in the second quarter - - Spectrum: Broadcasting's growth driven by launch of new networks and cost-cutting efforts - NEW YORK, Aug. 07, 2024 (GLOBE NEWSWIRE) -- INNOVATE Corp. ("INNOVATE" or the "Company") (NYSE: VATE) announced today its consolidated results for the second quarter. Financial Summary | --- | --- | --- | --- | --- | --- | --- | --- | --- ...

As a result of the reverse stock split, every ten shares of the Company's Common Stock issued and outstanding will be automatically reclassified and changed into one new share of the Company's Common Stock. Proportionate adjustments will be made to the exercise prices and the number of shares underlying the Company's outstanding equity awards, as applicable, as well as to the number of shares issuable under the Company's equity incentive plans and conversion of the Company's outstanding convertible securiti ...

NEW YORK, July 29, 2024 (GLOBE NEWSWIRE) -- INNOVATE Corp. ("INNOVATE" or the "Company") (NYSE: VATE), a diversified holding company, announced today that the Company is amending the effective date for its 1-for-10 reverse stock split of the Company's common stock, par value $0.001 per share (the "Common Stock"). The reverse stock split will become effective at 5:00 p.m. Eastern Time on August 8, 2024, after close of trading on the New York Stock Exchange. Previously, the Company planned for the reverse sto ...

Computershare, Inc. ("Computershare"), the Company's transfer agent, is acting as the exchange agent for the Reverse Stock Split. Stockholders holding their shares electronically in book-entry form will not need to take any action. Stockholders holding certificated shares will be required to turn in their existing certificates, and all new shares will be issued in book-entry form, unless such stockholder requests otherwise. NEW YORK, July 19, 2024 (GLOBE NEWSWIRE) -- INNOVATE Corp. ("INNOVATE" or the "Compa ...