VATE - Earnings call transcript Q4 2021

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Operator

Good afternoon and welcome to INNOVATE Corp's Fourth Quarter and Full Year 2021 Earnings conference call. All participants will be in a listen-only mode. After prepared remarks and presentation, there will be a question-and-answer session. And please note that this event is being recorded. I would now like to turn the conference call over to Anthony Rozmus with Investor Relations. you. Thank ahead. go Please

Anthony Rozmus

you and with results. full Thank INNOVATE's to fourth quarter year for afternoon. us being review Good XXXX earnings

are INNOVATE; Avie Barr by Chief joined of We Wayne INNOVATE; Financial Glazer, Officer. Jr., Mike and Chairman of Sena, INNOVATE's CEO today

innovatecorp.com. our at have our posted slide on release earnings We our and presentation website

We will session. prepared be call also is with on This and archived be will to begin remarks our our website. being call Q&A followed simulcast by

INNOVATE's which make pursuant these cautionary XXXX. with may Securities historical certain in factors could to that detailed Harbor XX-K discussed our management are further results is call, risks, assumptions assumptions and made filings these differ not and Act results Any actual in risk The will and being our earnings statements. that provisions this involve subject statements risk in to certain to and assumptions, could that forward-looking, be fully of During forward-looking and more forward-looking Litigation factors Reform Private facts, slide the uncertainties, materially statements and are presentation Safe cause in other the such differences are of cause are included SEC. the the statement the from and and

our Management In turn revise allow greater in required will this operational over expressly or financial of that supplemental to Glazer. of SEC statements review for these such transparency are measures statements, update reports. to this certain substitute intent in law. addition, call disclaims obligation and Avie things point, included my We and forward-looking useful to for EBITDA. as the to measures, stated a the not measures, believe pleasure INNOVATE also is At non-GAAP financial GAAP while forward-looking it only performance. data except date call, as adjusted our provide by made in conference this as of or these the refer as any

Avie Glazer

three a We core segments of business BeyondX financial to primary transformed Continental our of Clean of a like new in order We reducing us. INNOVATE achieved to that Insurance. notes of period capital number business accomplishments. and with both their completing short joining to I'm economy. minutes sale thank you all In I'd align and our sharpened incredibly afternoon. operating benefit changed our proud growth trends refinancing enhanced successfully with stakeholder INNOVATE from time, with re-branded progress the capitalism by from Energy XXXX. the sustainable by and Good and to five INNOVATE And our our for principles into and by spend our best-in-class We a I'd highlighting our structure credit Corporation three, senior focus facility. along the generation. companies in improved few name like to should in flexibility value

Our Infrastructure helped segment and to which size acquired industry Steel, geographic and DBM expand Banker added footprint. leader an DBM

business RX's a its in In On of increase at Glacial entered RX the launched DBM term. ownership agreement that favorable more our position. product, and to RX, into new Life first heels credit transaction, Sciences, invested

to RX's are continue progress with pleased be business. the We that by in and opportunity excited

adjusted important achieved the great our And largely same XXXX footprint. Spectrum and Glacial year for customers with EBITDA we expanding while the code. and place, in existing in product broadcast and RX's indication earned FDA RX at profitability new our saw Additionally, from unique an network first both time of nationwide interest

that, derived I'm three value Sciences, INNOVATE. We We year forward exciting and Infrastructure, and to to each was our excellence for turn XXXX. you operational are of call to can look best-in-class of us we from in front of pleased in With early As the and an Spectrum. remain CEO more the about excited to see Wayne eventful INNOVATE. the we assets opportunities still transformation Life XXXX stage of believe and see, be over in this Barr, in much

Wayne Barr Jr.

Thanks, Avie all joining and for us you today. thank

a that place stepping over XXXX the in stone INNOVATE. major put highlighted, ago to It's in our results. we clear for strategy Avie a coming is was financial As fruition year

respectively. in execute fourth value we We strategy this growth continued extract to more able three XXX% that which drove revenue and quarter, from EBITDA of the of our and were class in consolidated quarter, assets. to adjusted best again, XXX% each Once

and a for record post quarter as COVID our of operating highlights increased the Global commercial, - DBM revenue each fourth recovery. public services, segments. to now part delivered projects of Turning sector in industrial with demand

footprint. pipeline, our project this key prices. Our been has pipeline we mentioning and national a that going out total the DBM in helping The having and been continue not for number, positive build There our remains construction market. be on presence strong geographic begins rising future Banker adjusted would steel in despite is the impact by in pandemic of margins the into business following we visibility saturate and in to as revenue. great backlog of Banker There and continue the our our has COVID the and optimism family. new our regions, to to is see capacity demonstrated remiss a addition plan according capabilities $X.X potential Steel activity their benefit industry integration billion Steel market from backlog in to I demand significant significant increase showcases as to

the both the supply various also for acknowledge in business. market of tightening the labor We as well chain our as challenges

team at well-managed by However, at strong we believe time, this point are in place DBM. risks the in being the

We in to will XXXX. our impacts the to business potential monitor continue

delay to Glacial Due a Spa world. make The is continues in businesses. RX with product to and the the shipping Now, coupled COVID Glacial investigational to application United at making the study, that the Life to upcoming the Spa of its the manufacturer Pansend in MediBeacon in FDA is regions product, started Sciences, in material for used exemption of around that study MediBeacon product submit progress planning for impending of device will progress now U.S. the pivotal momentum be related pivotal an second the shows the the quarter. turning a anticipation commencing is launch initiate is the to the This pivotal Once U.S. can toward the study. China Chinese the multiple IDE States, RX review in approved, Glacial is study. of launch. Rx MediBeacon pivotal XX-day the the application RX its process step first the and in application

about the on MediBeacon's the excited and front as excited remain in this are We opportunity equally about developments business.

opportunities $X.X At now Spectrum, the and see a Adjusted We record track full-year achieved $X.X are of the we this Pansend at are profitability to to of ongoing our about in a year-over-year happy business. have EBITDA growth continued million we ability million. momentum optimistic performance. capitalize grew with establishing consistent on

Altogether, drive focus Group We the in optimizing and Media's help longstanding launched OTA the Xtra, ad-supported, SPORTS networks September carried stations LATV, Sports. such dozen using growth Spanish and increased the that revenues We with X, than eliminating are as Today, the our offer side, comprehensive, specifically, now clients, Also more others. to of is programming Media, platform continue more agreements Station of live XXX wide Spanish SPORTS Xtra a distribution Cisneros year. most and among of by the XTRA. include NBC, distribution XX/X costs, new Curate, operations, and stations. Sony on is media quarter, carriage Group our XXXX, than today, Fremantle, beIN on over we are Station revenue. a Xtra beIN on versions and on that English fourth improving there sports XX Weigel, the CBS, range profitability. sponsored companies by which Spanish getTV network networks In for Scripps, XXX renewed English free, our XTRA on and beIN markets

As to area. January, results our as XX, currently year. operating which for XXX XX XXXX, XXX stations, three of completed strong we system. coverage designated all sharpen XX of construction of of across Broadcasting the XXXX December new new and central broadcast the benefits adding to areas of delivered In saw caste are already stations, our the focus Overall, INNOVATE market financial connected our record we finish we segments, extensive operated

$XXX.X was was million, million Total $XX.X XXXX. XXXX, to year. For prior the in the full-year compared billion, $XX.X for consolidated EBITDA XXXX $X.X for net to compared adjusted revenue million

make to that it capital believe at We progress all businesses that our exceptionally momentum. Mike are our of to With review over our of excellent I'll with structure. continue XXXX and three turn to significant that, We enter benefit of part for emerging well-positioned the businesses growth economy. are catalysts financials and new a as the from

Michael Sena

operations Total the million to contribution $XXX.X was period. net share the fourth of taken bridge $X.XX driven prior-year million XXX.X% XXXX through offerings, will period. of place $XX.X was as increase walk XXX.X% financial increase XXXX key for an of of project that the structure, $X.XX Steel, which attributable I and and quarter adjusted $X.X million per the Wayne. was the a and an of million, the to performance, loss you prior-year the XXXX. $XXX.X common contribution to share, a our quarter The well excludes in was segment, higher EBITDA driven first Infrastructure The in prior-year $X.X and structure changes stockholders loss in I'll in of EBITDA, to compared by of under adjusted total compared increase timing million Net work primarily from $XXX the a attributable $XXX Thanks, or DBM Banker's discontinued execution is preferred Banker key transactions quarter Consolidated from then to revenues backlog quarter. have fourth increase the fourth by participating an increased mix. you to revenue revenue period. service by million to per XXXX, from prior-year from the led our quarter, as in million $XX or capital our for in review the help across million

of and service during sold as $XX.X of as legacy improved increased this DBMG SG&A fourth higher at from from to As expense margins $XX.X QX offerings. highly Infrastructure in Steel $XXX discussed to see business during has acquisition million Banker as profitable to the of in backlog is the Infrastructure, continues the the pandemic million completion DBM adjusted well the as project begun across increase burn increases. off. additional erection business, revenue to a as EBITDA million an quarter resulting the the business fabrication well in design the industrial revenues of earlier, due quarter XXXX for modest

Overall the in lag the However, to in business second compared as backlog. industrial see to close it's X% the to X.X% and continued sales margins into quarter. was EBITDA fourth third starting quarter improved has to and just now

backlog takes which was not into consideration reported end maintained from debt, with fourth XXXX million DBM billion credit. $X.X significant billion, $XXX.X at revenue XXXX, the strong of ended $X.X last from of backlog backlog Adjusted December largely the up end $XXX with fourth the reduction levels million visibility their the DBMG beyond. was The of of of in of contracts, million quarter. of up backlog, December but has quarter signed awarded line while $XXX of at As $XXX.X quarter yet for the in XXXX. the year. provides recognizing end a temporary at million and

final and Life support However, in their were increase at ramp slight product by larger an coverage in adjusted an an spend with lower in XXXX. This the they as new continued capacity RX million business technologies, driven study. primarily as of revenue to platform EBITDA quarter, $X.X their increase capital At commercialization backlog expenses in operations offset losses efforts, the at development and million market continues prepare by result partially of quarter. pivotal million as further customers compared sales increase adjusted to Spectrum as broadcasting EBITDA on prior-year of line advertising the adjusted continued $X.X and growth projects At existing decreased EBITDA revenue we in the to its a sell Sciences, to of network. expect including delivered the in was fourth the network MediBeacon in working of and to up they as scaling sales the of well X.X% increase revenue in the at marketing the in some for the $XX.X Spectrum, as business. expansion

unprofitable million by of XX Results described the EBITDA compared improved reflect XXXX, the and Spectrum ended adjusted revenue Wayne of across recorded non-core XX, to cost EBITDA reductions the the and earlier. in operations $X.X months For prior-year. stations platform, sale losses December improvements

fourth On up for period. cash station from $X.X billion XX by the $XX.X of the had of cash million basis, end XX, equivalents Our December $XX.X grew $X.X in corporate by million for the an $XX.X sales of a expense of XX, compared the $XX revenues and were losses of Company and bonus of to XXXX. At as segment quarter, of December months the as standalone increase XX.X% adjusted during corporate XXXX EBITDA XXXX, to the the of cash the quarter approximately driven equivalents, fourth fourth XXXX, by at Non-operating the ended December mostly million, end million had XX, XXXX. XXXX. million, compared cash quarter

As a of we debt $X and fourth November sales. using quarter in of outstanding to extended outstanding proceeds on at broadcasting from XXXX, the DTV reminder, repurchased million debt maturity the of million the station approximately $XX non-core of

infrastructures, at by the principal financing had to indebtedness of of INNOVATE up the million $XXX.X driven acquisition. million Banker from related XXXX, $XX.X million, outstanding XXXX, primarily $XXX.X end XX, December of As

Our improvement the overall to XXXX. a INNOVATE, compared fourth to strong contributed showed in results XXXX for quarter business clear which

we Our Life year. is With look assets. long-term the underway and of the in time Operator, call for Spectrum to questions. We best-in-class Sciences this success further look reporting now open as that, up at more our strategy value each forward across we'd on Infrastructure like next unlock to to

Operator

be Thank we At conducting we while question-and-answer you. moment will this please [Operator for poll session. Instructions] questions. One time, a

line comes question from of the Charles Pressprich. first with R.W. Our Brian

You may your proceed with question.

Brian Charles

you've businesses to wondering put years Good so? I'm quarter. from and the the and of it's little are perspective, I in certainly $XX maybe a on see bit afternoon, this those color couple in Life know the businesses wondering at point, Sciences get largely more investments could you too, do on I INNOVATE's of million -- financing. progress congratulations nice of the incremental if I'm next or self-funding another or expect in if

Michael Sena

and Mike, it's doing Brian, Wayne you're Hey well. hope

Brian Charles

right. all I'm

Wayne Barr Jr.

Good.

ready RX launch, and We this they've very XXXX shipped So as were have to commitments United the we're we're support we've Spa. China there, no do the over product Glacial of perspective Glacial happy did the all in to invest did indicated Rx that made. again, we and to from the getting that INNOVATE $XX we an product to announced, At States, as the for in point, RX further to has really million there progress that made. and

Michael Sena

be when we invest to as they likely it I the need funding. would progress at in the time just something a businesses of these would obviously that At to would and the say be will that do, decision point the are want whether with businesses. it'd we very pleased

depend is just to the timing going what works. it's and So the on in else

Brian Charles

Okay.

So it capital opportunity, sort sounds Is be needs. like on [Indiscernible] any not incremental of investment based that would

Michael Sena

Much what expect. more than articulate I

Wayne Barr Jr.

[Indiscernible]

Brian Charles

Okay, Fair great. enough. that's

credit talking infrastructure have -- up of were wondering scale might the incremental financing line business? You you Secondly, down I'm do color any at the draw bit. about on ramping of the a

Wayne Barr Jr.

it that's guidance, to what All backlog of projects approximately and capital. will but the going mentioned Well, obviously if fourth working invest happened $XX run don't permanent higher need credit We reduction quarter just in a that as look ramp by up, months their million. that I in as because line that's that's point out the a dip is back to and why think during was that -- the reduced really they bigger wanted just that give I some at off million don't that. capital And was want was they what of line. they go They're they getting quarter, into at people ago. these you during to three to I I $XX

Brian Charles

thanks. fair I've That's for enough. all got All now. right, Okay. That's

Michael Sena

Great. you. Thank

Operator

I further the questions turn over and back this time now will closing for there At Instructions]. Wayne to call are any remarks. no [Operator

Wayne Barr Jr.

joining Thanks, thank John. us you And all for today.

As follow-up. we're hope have evening. always, And available a all for you any very nice

Operator

may you conference; at and a your day. your today's your conclude this does for participation time. This disconnect have lines great Thank

INNOVATE (VATE) 10 Mar 222021 Q4 Earnings call transcript