Innovate Corp. · NYSE:VATE
Innovate — HC2 Holdings — FY2016 Earnings Presentation
25 slides from Innovate's earnings presentation, Mar 8, 2017
Slide 1: Fourth Quarter and Full Year 2016 Conference Call
HC2 HOLDINGS, INC. © HC2 Holdings, Inc. 2017 Fourth Quarter and Full Year 2016 Conference Call
Slide 2: Special Note Regarding Forward-Looking Statements
© 2 0 1 7 H C 2 H O L D I N G S , I N C . Special Note 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-lo
Slide 3: Agenda
© 2 0 1 7 H C 2 H O L D I N G S , I N C . Agenda 2 OVERVIEW AND FINANCIAL HIGHLIGHTS Philip Falcone Chairman, President and CEO Q AND A Philip Falcone Michael Sena Andrew Backman Chairman, President and CEO Chief Financial Officer Managing Director – Investor & Public Relations
Slide 4: Quarterly and Full Year Overview
Quarterly and Full Year Overview
Slide 5: 4Q16 and FY16 Highlights and Recent Developments
© 2 0 1 7 H C 2 H O L D I N G S , I N C . 4Q16 and FY16 Highlights and Recent Developments 4 Solid fourth quarter results again highlight the unique value HC2 brings to the market with our diverse, uncorrelated industry holdings – Construction: Continued margin improvement; Record backlog and deal
Slide 6: HC2 Segment Overview
© 2 0 1 7 H C 2 H O L D I N G S , I N C . HC2 Segment Overview 5 Early Stage and Other Holdings Core Operating Subsidiaries FY16 Revenue: $502.7m FY16 Adjusted EBITDA: $59.9m Record Backlog $503m Solid long-term pipeline with additional [~$300-$400] million in potential project value that co
Slide 7: Segment Financial Summary
© 2 0 1 7 H C 2 H O L D I N G S , I N C . Segment Financial Summary 6 Adjusted EBITDA for Core Operating Subsidiaries $37.9m for Q4 2016 All data as of December 31, 2016 Construction formerly Manufacturing; Energy formerly Utilities. ($m) FY 2016 Q4 2016 Q3 2016 Q2 2016 Q1 2016 Adjusted EBITDA Core
Slide 8: Construction: DBM Global Inc. (Schuff)
© 2 0 1 7 H C 2 H O L D I N G S , I N C . Construction: DBM Global Inc. (Schuff) 7 4Q16 Net Income: $7.3m; FY16 Net Income: $28.0m versus $24.5m in FY15 4Q16 Adjusted EBITDA: $20.7m; FY16 Adjusted EBITDA: $59.9m versus $52.0m in FY15 Continued strong gross margins due to better than bid performance
Slide 9: Marine Services: GMSL
© 2 0 1 7 H C 2 H O L D I N G S , I N C . Marine Services: GMSL 8 S. B. Submarine Systems (SBSS – China Telecom) – 49% ownership Joint Venture established in 1995 with China Telecom China’s leading provider of submarine cable installation Located in Shanghai and possesses a fleet of advanced p
Slide 10: Energy: ANG
© 2 0 1 7 H C 2 H O L D I N G S , I N C . -$0.4 $0.9 $2.5 $1.8 $6.8 $6.4 2014A 2015A 2016A Recent Performance Adjusted EBITDA Revenue Energy: ANG 9 All data as of December 31, 2016. Energy formerly Utilities. 4Q16 Net Loss: ($0.06)m; FY16 Net Income: $0.01m versus ($0.27)m in FY15 4Q16 Adjusted EBIT
Slide 11: Telecommunications: PTGi-ICS
© 2 0 1 7 H C 2 H O L D I N G S , I N C . Telecommunications: PTGi-ICS 10 $(1.2) $2.0 $5.6 $162.0 $460.4 $735.0 2014A 2015A 2016A Recent Performance Adjusted EBITDA Revenue All data as of December 31, 2016. Strong quarterly results again due to continued growth in wholesale traffic volumes, in par
Slide 12: Insurance: Continental Insurance Group
© 2 0 1 7 H C 2 H O L D I N G S , I N C . Insurance: Continental Insurance Group 11 Note: Reconciliation of Adjusted Operating Income to U.S. GAAP Net Income in appendix. All data as of December 31, 2016. Continental Insurance, Inc. (CII) serves as a platform for run-off LTC books of business and
Slide 13: Pansend Life Sciences
© 2 0 1 7 H C 2 H O L D I N G S , I N C . Pansend Life Sciences 12 HC2’s Life Sciences Segment Is Focused on the Development of Innovative Healthcare Technologies and Products 80% equity ownership of company focused on immunotherapy; Oncolytic virotherapy for treatment of solid cancer tumors Fou
Slide 14: Notable Financial Updates
© 2 0 1 7 H C 2 H O L D I N G S , I N C . Notable Financial Updates 13 Collateral Coverage Ratio at quarter end exceeded 2.0x $90.9 million in Consolidated Cash (excluding Insurance segment) – $21.7 million Corporate Cash $41.4 million in Tax Share and Dividends received in 2016 – Subsequent t
Slide 15: Questions and Answers
Questions and Answers
Slide 16: Appendix: Reconciliations
Appendix: Reconciliations
Slide 17: Reconciliation of Adjusted EBITDA (Loss) Twelve Months Ended December 31, 2016
© 2 0 1 7 H C 2 H O L D I N G S , I N C . Reconciliation of Adjusted EBITDA to U.S. GAAP Net Income (Loss) Twelve Months Ended December 31, 2016 16 (in thousands) Construction Marine Services Telecom Energy Life Sciences Other and Eliminations Net Income (loss) attributable to HC2 Holdings, Inc. $ (
Slide 18: Reconciliation of Adjusted EBITDA (Loss) Twelve Months Ended December 31, 2015
© 2 0 1 7 H C 2 H O L D I N G S , I N C . Reconciliation of Adjusted EBITDA to U.S. GAAP Net Income (Loss) Twelve Months Ended December 31, 2015 17 (in thousands) Construction Marine Services Telecom Energy Life Sciences Other and Eliminations Net Income (loss) attributable to HC2 Holdings, Inc. $ (
Slide 19: Reconciliation of Adjusted EBITDA (Loss) Twelve Months Ended December 31, 2014
© 2 0 1 7 H C 2 H O L D I N G S , I N C . Reconciliation of Adjusted EBITDA to U.S. GAAP Net Income (Loss) Twelve Months Ended December 31, 2014 18 (in thousands) Construction Marine Services Telecom Energy Total Life Sciences Other Total As Reported Net income (loss) (14,391)$ 19,278$ 17,718$ (1,06
Slide 20: Reconciliation of Adjusted EBITDA (Loss) Three Months Ended December 31, 2016
© 2 0 1 7 H C 2 H O L D I N G S , I N C . Reconciliation of Adjusted EBITDA to U.S. GAAP Net Income (Loss) Three Months Ended December 31, 2016 19 (in thousands) Construction Marine Services Telecom Energy Life Sciences Other and Eliminations Net Income (loss) attributable to HC2 Holdings, Inc. $ (6
Slide 21: Reconciliation of Adjusted EBITDA (Loss) Three Months Ended September 30, 2016
© 2 0 1 7 H C 2 H O L D I N G S , I N C . Reconciliation of Adjusted EBITDA to U.S. GAAP Net Income (Loss) Three Months Ended September 30, 2016 20 (in thousands) Construction Marine Services Telecom Energy Life Sciences Other and Eliminations Net Income (loss) attributable to HC2 Holdings, Inc. $ (
Slide 22: Reconciliation of Adjusted EBITDA (Loss) Three Months Ended June 30, 2016
© 2 0 1 7 H C 2 H O L D I N G S , I N C . Reconciliation of Adjusted EBITDA to U.S. GAAP Net Income (Loss) Three Months Ended June 30, 2016 21 (in thousands) Construction Marine Services Telecom Energy Life Sciences Other and Eliminations Net Income (loss) attributable to HC2 Holdings, Inc. $ 1,935
Slide 23: Reconciliation of Adjusted EBITDA (Loss) Three Months Ended March 31, 2016
© 2 0 1 7 H C 2 H O L D I N G S , I N C . Reconciliation of Adjusted EBITDA to U.S. GAAP Net Income (Loss) Three Months Ended March 31, 2016 22 (in thousands) Construction Marine Services Telecom Energy Life Sciences Other and Eliminations Net Income (loss) attributable to HC2 Holdings, Inc. $ (30,4
Slide 24: Reconciliation of Insurance AOI (Loss) Quarterly and Full Year 2016
© 2 0 1 7 H C 2 H O L D I N G S , I N C . Reconciliation of Insurance AOI to U.S. GAAP Net Income (Loss) Quarterly and Full Year 2016 23 The calculation of Insurance Net Loss has been revised to exclude adjustments for intercompany eliminations as they are not considered relevant in evaluating the p
Slide 25: HC2 Holdings, Inc. Investor Relations Contact
HC2 HOLDINGS, INC. © HC2 Holdings, Inc. 2017 A n d r e w G . B a c k m a n • i r @ h c 2 . c om • 2 1 2 . 2 3 5 . 2 6 9 1 • 4 5 0 P a r k A v e n u e , 3 0 t h F l o o r , N e w Y o r k , N Y 1 0 0 2 2 March 2017