INNOVATE (VATE)2024-03-04 23:10Financial Data and Key Metrics Changes - INNOVATE reported revenues of 409.3 million in the prior-year period [41] - Adjusted EBITDA for Q4 2023 was 28.1 million in the prior-year period, driven by declines in multiple segments [42] - The net loss attributable to common stockholders for Q4 2023 was 0.12 per share, compared to a net loss of 0.09 per share in the prior-year period [20] Business Line Data and Key Metrics Changes - DBM Global achieved revenues of 30 million, and expanded gross margins by approximately 200 basis points [6] - R2 Technologies experienced a 173% increase in monthly patients treated year-over-year and a 106% increase in average monthly utilization per Glacial provider [7] - Spectrum's revenue decreased to 5 million compared to Q4 2022, primarily due to the elimination of advertising revenues at Azteca [46] Market Data and Key Metrics Changes - R2 Technologies reported a 213% increase in social media impressions and a 491% increase in provider location searches from 2022 to 2023 [36] - The reported backlog for DBM was 1.8 billion at the end of 2022 [22] Company Strategy and Development Direction - The company is focused on optimizing the value of its assets and is encouraged by future prospects, particularly in the Life Sciences and Infrastructure segments [12][34] - INNOVATE is launching a fully backstop 35 million rights offering to shore up liquidity needs for 2024 [17] - The company is actively exploring opportunities in 5G broadcasting and has filed an application with the FCC for converting existing stations to 5G [38] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the overall M&A market and hopes to reach resolutions in 2024 regarding non-cash-flowing businesses [39] - The company expects 2024 results for DBM to be slightly lower than 2023 but remains optimistic about future opportunities [35] - Management highlighted the importance of addressing the capital structure as a key driver for stock price performance [39] Other Important Information - As of December 31, 2023, INNOVATE had total principal outstanding indebtedness of 722.8 million, a slight decrease from 2.5 million in Q4 2023 from $1.2 million in the prior-year period [47] Q&A Session Summary Question: What are the expectations for DBM's performance in 2024? - Management expects DBM's results in 2024 to be slightly lower than in 2023 but is optimistic about strong opportunities exiting the year into 2025 and beyond [35] Question: How is the company addressing its capital structure? - The company is focused on utilizing non-cash-flowing assets to address its capital structure and is optimistic about the M&A market [39]