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Andrew Backman | Managing Director-Investor Relations and Public Relations |
Philip Falcone | Chairman, President and Chief Executive Officer |
Sarkis Sherbetchyan | B. Riley |
Good afternoon, and welcome to the HC2 Holdings Third Quarter 2017 Earnings Call. All participants will be in a listen-only mode. After today’s presentation, there will be an opportunity to ask questions. Please note this call is being recorded. I would now like to turn the conference over to Mr. Director Relations Managing Public HCX's Backman, of and Investor Relations. Andrew ahead. go Please
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by to in conference SEC update in obligation forward-looking are this of included addition, made any this and date call expressly except call as these disclaims revise intent reports. the our statements forward-looking required statements stated In of law. the or only HCX or as as
measures operating these will available recent SEC without otherwise measures, constitute non-GAAP or call, which about under adjusted earnings AOI. such revenue, this including cannot information and consent. pro adjusted available or non-GAAP provide will And prior finally, as as most a income, company's be measures, that the reminder, to disclosed certain GAAP in information is press management duplicated on net forma reconciliations the Certain required the with EBITDA the rules, our the During release call is taped most website. be financial comparable
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segment Turning to Slide financial X, the summary.
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third is earlier timing. year-to-date For we prior performance, a sequential the in year. fully where to the to expect basis we and is been gain quarter a that's be DBM, see This in previously saw but once as this and to we this discussed year-over-year momentum slightly we mainly strictly expected again the We're to continue project business get a on the from due again projects and increase and delayed we to – thing year-end. but strong it be delays, in elaboration year down
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around For incurred increase expense we expenses, quarter the higher past million non-operating be again year, still in expense couple maybe comp to $XX of given the we line. but the this million in a full related corporate expect because
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assets. and $X.X RBC million XX, $X.X Looking in upon million the billion total And. of billion in XXXX, minimum. at $XX $XX ratio invested approximately CIG assets, the agreed September and end of surplus exceeded cash September platform the as as of the was stat XXX%, adjusted of the GAAP capital, total had approximately of which again
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these So exciting hopefully I things have to months. would about expected talk we're And the on of number what we doing some all and of exactly investments. do over next
two secured again to exceed our turning coverage XX, to So continues Slide our notes. updates, collateral just times some quick under financial
cash Excluding $XXX was insurance consolidated the million, end. again quarter over $XXX at segment, million the
During received another PTGi. north DBM XX PTGi. sharing basis, we cash and tax we from received the quarter, And of a bit in dividend little on and from year-to-date third a dividends
expect from DBM. to In addition, we X.X receive another
on both a the that's DTV key weeks Mako the will build DTV next to and that you couple to – And perspective this within on broadcasting work you of a acquisition we financing expect was level many on which try focused. will of on know you bridge space. As second made have arranged the if and and most know of finance this know on of and focus where from the not or been America We Communications that we Mako we've announcement all objective the do during of close broadcast and at bit quarter. we announced and the we're the focused and
not through that synergies all not there top will view in Again objectives I these at is broadcasting some are at These all an point, be here our or are the we will are opportunity and they're there We is value will operating what believe of some around for there any asset been businesses an and these from some are here perspective assets. our to some here there perspective purchases. line channel leasing in quite asset doing assume is – our this just will are around meaning a and continue you vision model our that there be time have that believe license we business anticipation or will what that one. that changing and are. from cetera. We expecting have revenues be will walk et be change that And parameters utilization and financial and and growth some in these businesses
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focus. a very part key our that’s So of
flow. This and optimize cash balance and me. I've and said that's that structure, balance acquisitions something continue about, is for we I we very, our for As before slide look liquidity think as our very first important talked and ways about improve capital that to
and We think a to are very sure strategic it play make of we are effectively a of vision. think lot we're about we and our yet, are a this our out being not kind process timing are strategic number things very to quite and from hands-on trying but there managing with view I making as progress perspective of
get holdings is stated So is our dotting we're is our and is cost about, our keep we not that key think And about as have for before to find and to been a with will and where on – or sitting to T's keeping there like busy on and from I's, appreciation I've course it than find its a methodology asset We're crossed not as very our debt I our perspective with fingers play it will And overtime both time. objective the to should the its continue down. cash out. flow here. is, hands. lot from it way capital to over talking it appreciation a value, a what And on be cost believe a price crossing higher happy I'd the but is, us And will acquisitions. a executing think that perspective, on I executing. I it strategic we be. focus stock from capital itself But is and I'm where from not as our it
see want brief I've with the now So some quite here move that we for quarter. on to move time on and I know had Q&A on a if I can to
Andy want to with that gap you Q&A there Session? So move bridge and that to the
ahead go and queue Q&A up? Sure you and Phil. Brian thanks the give can instructions
you. thank Yes,
from the Sherbetchyan session. please first B. proceed. now Instructions] We question-and-answer begin will Sarkis Riley will come question with our And [Operator
Andy. and Phil, good Mike Hi, afternoon,
Hi Sarkis you? are how
I’m well thank you.
decreasing how the Construction profitability shifted composition maybe about has appreciate that XXXX. into increasing much of the seeing, of with Can fiscally level segment, to construction or regards project and is team the few Maybe duration, here over of with into time, some start here get example? kind if you even on delays in I’ll if you're seems you backlog? talk the describe increasing kind like can Maybe of in or you it So backlog questions seen of the can what I color the continued segment? been decreasing for your the that that has
out Yes or project complicated like of that And making a they you the I Linda some the Z. L.A. changes The projects of will on different they third-party longer the larger the Hospital be And should Loma it’s is clearly more to or The for But may involved projects. affect us projects there delay different than number discussed or our – we something expected. Loma say they get way doing sometimes. a be you larger And that essentially into is there's Rams Hospital, when in does But shape – may are from have or it’s Rams these concern if and stadium. Linda L.A. the form. we A and an as control entities entire stadium, as sometimes, these the project anything
So if that over benefit are. plays typically situation could we longer anything time. the the us The better it out, off
the million about at for end Services, the I the the of Kind Understood, that's this backlog, quarter. $XXX hopeful. same at thinking of think, looking number was Marine
Yes.
same can bit little if Maybe about the you talk like kind your there a or analysis of what seeing? composition the
which those if details that that mentioned, that from that was contracts somewhere. offhand. out million. two maybe backlog million $XXX two And two And typically, Typically them but between to see the backlog I’ll those each contributed on to say them want of dig there can don't have I $XXX what – what I don't we zone Yes, backlog in by from signed from a contracts. two increased $XXX force if other the bit five-year was as the just you about the deal recently. cable alone maintenance about less detail, think million additional The we I SEAIOCMA the
contract which a is each OCMA, the XXX. and NAZ, maintenance high And good XXX the is or maintenance again to bulk the quality from SEAIOCMA the that the XXX, the America, XXX from timing of perspective or a XXX. super the That’s business. chunk of to North of is the range from bulk So the they
seen, we've nicely for we've that is Sea increase other the year which year-to-date up that in the in is XXXX. for Wind business – the The mentioned
are – those underlying perspective, it's did, to think, fact a So the wanted that, fact a I well we from four is business maintenance situations, the And more to a – just that And of we that again really important from super reputational of contracts those the attractive kind of it than parcel renew of majority are we our kind felt we the consortium And XXX. We was between north platform. perspective. business. wanted. the that’s that the majority well
play where I three, a very than five being these amount or probably would You crew on telecom of be engineering business of perspective but a value-added a value-added cables. think, somebody contract, with four marketplace. have higher six a maintenance the of that of engineer think, valuation a very can’t that sorry critical, total total, some And your telecommunications three, piece robot we multiples. an tremendous critical XX% part aspect having from I in there's that, here, of that these a number to there's extra a we This mission and iterations of role about we think machine it, overall here. And critical it’s is have only and six control another why about in own business. because need reason of the I thing the think the complexities the contracts, key you around to businesses, the Because it’s of when
a and I that’s good Marine. of the speak our abilities think volumes trust and cap feather to on Global for people’s
If CapEx. That's can a think, CapEx approximately can $XX with perspective Marine you in meant on seems pretty Services, I million you picture stick interesting multiple think, very I give on transaction Marine I us avoids mean, And that the it projected helpful. maybe on I Fugro what mentioned from with Services, if fronts. better
you maybe us frame incremental can that? Just or to give any color comments
want about know vessel to you only to business. is that But – case this And We new think vessel upgrading business, and a capacity fleet. not is different do. in growing what part new bit a accomplished lot think acquisition out building And virtue you we this year continue this the flexibility of million, our can plant. this think CapEx our little fleet. particular $XXX I it's growing vessel on vessel capacity When about accomplished your but million. that, a your like business, plant fact the your continue $XXX want albeit, we by plant. And with when of on this a There’s in of we having I this is easily vessel now vessel, being
on bit has year market two of to realized looking under And I don't we And years the Fugro’s or Now a it. come pressure. to try for this want a we perspective said business. think, of equity, said and capitalize ago I to and wanting but they at from their levels. half just looking And think to trough are them, speak a their something the take to not I about belief could at rid about get – willingness thing be ago, in what their in
worth good the will a of what, around rebounds think back the and thing and vessel deal valuations So market kind having that news without I and by walk snap $XXX the away now we think like it to the gong they thinking being and way could participate neck we are this that million will, our returns thinking again.
for tough that I think will be this anybody time.
upgrade to the side off. we think, our the have business, that of we around because and opportunistically move give now assets they I as accomplish And as these gives business. flexibility different ability even did one as does maybe to of something us and to wanted what trenching us well some world parts does So, and expand some monetize it more our well, we than on accomplished
that there not at are will And expand time. want this along a a transformation talking good that the an line same would are overall in the there top business it acquisition with business And how remember from So is our our about that good I is think I here, be the they summer, This it thought acquisition to it a perspective business. overall. just here team I was asset to help emphasize purchase. and coming people a to
our us to spend money. an of cash as was So from we want grow dotted to acquisition. grow your if And clearly a this business, and the I’s check, you perspective, the on And really this I different we on the kind of business. our business, crossed I alternative with talked upgraded fronts number want the to a you got to or T’s think about,
there's a on gain lot things us of different fronts. So of for a number
helpful. That's very
the last the some the to team for set component data mention being right is of taking and that. call these room to Sciences assets. quarter's Moving sounds did is we Life like can certainly It for negotiate assets on you value up appreciate time the these
So just want to perspective should perspective? be get few a we a perhaps milestones value or the for next looking creation either for strategic from a sense
to end. all – Yes behalf additional we being underlying of think, more obligate want I relates capital, demand a the on. is think entities good as to contractually absolute That putting And the I it suffice they that milestones put make sponsors, commit make you to commitment that business our us said, no but to decision. on capital the that to there can we've be in say reached to on
no circumstance, any operating you They everyone funding. are strategics, not the again are at Dave’s will Cherine of about, milestones the this actively i.e. But and very involved is actively it and after here. can Opportunistically going the these on it is dealing that on do support the to and processes and formal put with case of to even to from while are want of right If additional – you perspective they business these managing. of HDX we we bad. think team relates not obligation the upswing behalf to you is are we look management each talked that close don't there investments. being through But continue the remotely good you with to want you as
here in, we if situation didn’t we to is any put good like wouldn’t want have the but to. money So think I new
know was thought holders, also I assuming a certainly the division. acquisition for Perfect. little interesting segment here may like an seemed the bit insurance, And your that about deal and a and if I'm talk did win-win switch policy from that gears for you give we But seller closes. sense here the about prepared kind kind gain us I infrastructure acquisition it on incremental from how could AFG. leverage of Can built talked team since for info the the you of the you've any that. a of remarks. can
down headcount. the XXX that financial somebody will to obviously portfolio servicing plus minus. having is I go Oh a to from portfolio without any pay people down bring of And the XXX then administer is one value perspective. then have to third-party go from a to buyer that from perspective. And having right to servicing in a you again now over Austin materially perspective. looking we're mind a a There yes, out like is keep big increase that doubling portfolio you to add are and think not got And not of in or the Austin that the – size think, this, a – plus which a it’s there's tremendous in value team, at relationship in people add it from
of So there this at capturing along in for one talk platform. us about is us and discussed clearly leverage leverage I us as platform a I When perspective the extremely synergies all still And the classic to critical to operating this and that case it’s was will leverage. flexibility. give get
their is the percent and we one way the focus not the space bread here know run by an they and people have have when cross of side, operation and the business, is where and going – it’s the T’s hundred may to their this on butter we that on and just landscape, become again I’s or will an diversified there continue to opposed one other. in are because opportunity there as dot So people to insurance a area in allow opportunity and focus trends
some So one we if to just as buyer. a would going can kind efficiencies it, on result to not it otherwise as this capitalize would it. Not not on especially have try otherwise we they see focus financial of And our we look we’re there. were space, going create at a one and is we're and think
very hopeful. That's
of then in want would debt, flowing? of mean, short-term there's assets here to perhaps regards loan to expect obviously would a alongside wanted to the be bridge sublevel? bit. switch at a would much talk I be opportunity cash going the And debt require yet add about want mean little pick didn't but it a question to just if you sounds I Do I I Just be to But can agreement. what's too strategy that right like the the perhaps kind gears your then kind and you long-term credit and LPTV be know or probably into with understand to maybe dive broadcasting? assets, and brain those that
full Holdings’ term Well place is looking signing short HC this. that putting and We the broadcastings. sub and and the entity that is the the strategy at already will financing in it is this proper for a the expect clearly bridge capital structure
up it’s the here. public but million this $XX what out much listen, think bridge it's down but it’s think, the to and more about we broadcasting that there is space strategy this day number to on flexibility. is, will fragmentation this of strategy it I made And country. across about households advantage not permanent substantial in the on not have the again to relates with to a the a But to But million. of it as the bridge having number a And also critical as space, us bridge is become into you opportunity the in is the about don't clear. I That’s to drying more about broadcast ability $XX it we’ve acquisitions one. think something taking build the the having today. number as give mass additional continue we marketplace that And it’s detail, too signed road. So near not of going into a really without fronts to
content in the space to XXs just primary then this method blanking word, rationale – over-the-air and content of being much content viewing on the media the without in back for already, XXs really into you and too means secret and am And television. moved reasons: getting basics, – to had detail, think said the what’s I So you XX and you times into cable happening reception. the I must and know back television two when about
cable The Today to have is You and the changed. the technology that’s reception. business The has get the way to not has proper there. or changed have by content case.
off. cutting. ultimately just And So part City by no New plan you There of eyeballs. and business business crystal and attractive business big there you no a a go does my is They clear, again, the valuations, have based and generate critical be is anything the problem some becoming again, that are over-the-air that people the know, dynamics going it’s one eliminate but don’t I can And a entity that’s is I opportunity without or there as that has is valuation. to think there method XX% successful real a we happening from to court there, don’t that have over-the-air chunk XX%, business I attractive billion if thing believe that the that XX every some that through have $X nothing is providers individual what’s to office But happening. stretch will in and and is – that channels real content OTP. and to to here cable those more mass cable have think the we be for their difficult and to for more individual relative to for on every have two have the more this we a the of the even get there and or XX% as more oh more out means a – to would that’s been have York of of that niche reason take television in get content. phenomenal business and of And super number thinking or content way
we set you other into without much getting on couple working next flexibility but a nothing thing is already you us. the anomaly play to a get this four you’ve out things, And package, will at over different as see point just it pretty have seen. effectively permanent. bridge detail, it of we that more too some for but do financing So, I with site what know, and to have our think on a We relates no three, and wanted will been two, months something
thesis short a in thesis the there. the that’s quick – term So nutshell
I appreciate me. for that. you. be Thank That all will
you sure? are Great,
bumping Sarkis. against appreciate and We time. up Thanks, it we’re
So, Phil thank thank you again us you, today. joining everyone and for
York at available have in please conference and team evening call to provide instructions follow management great replay ups, please Should our directly everyone. me again. New XXX-XXX-XXXX. always a Brain, you could you go is Have the speak. any ahead As here call questions do hesitate not or to once
Thanks everybody.
Thank Mr. Backman. you,
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