VATE - Earnings call transcript Q3 2024

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Operator

Good afternoon, and welcome to INNOVATE Corp.

Third Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference call over to Anthony Rozmus with Investor Relations. Please go ahead.

Anthony Rozmus

afternoon. Good being review for XXXX third us results. earnings with you INNOVATE's to quarter Thank

today Voigt, by and joined are We Paul INNOVATE's Mike INNOVATE's CFO. Sena, CEO; Interim

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

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

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

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

Paul Voigt

afternoon. Good

of key on DBM million results, INNOVATE quarter revenues pleased business of you we'll achieved $XX.X the adjusted in million progress across EBITDA $XXX.X of exemplify and and We each XXXX. EBITDA and strong of quarter update milestones adjusted our to consolidated reached of Global third million report segment. revenues financial million. third that are $XXX.X the delivered $XX.X

seen quarter, the basis year-over-year XX.X% points improvement has adjusted DBM by XX to XXX gross EBITDA of margin X%. During to approximately year-over-year points and approximately basis

we As delivered are DBM in half. the calls, expecting year for first strong we've a full on discussed to lower results previous versus last very slightly come year.

to XXXX have of year first from and the unusual signaled and previous lighter the year. be However, with compared same met first the as half expectations, will half our X as months we the XXXX. on period second outperforming the of aligning previous with expected the for This half results the calls, back results been has

quarter be lighter high although signed construction. was market at $X.X opportunities backlog, have of EBITDA be There third start the While margins but than commercial to not by released higher adjusted volume been We takes of quarter. billion awarded sales total slightly yet end not today, third to continues in offset this than the expect quarter. last adjusted to expectations, results. were consideration DBM's year into which lower still bidding projects increased yet the in to the contracts many

provider for year pleased same Glacial users to positioning brand for XXXX, increase line monthly to multiple Arabia, backlog Glacial massive commercial systems top has outside results and a to and sales, high. X,XXX% the Singapore, commercial of growth of line 'XX. company sales secured by significant Saudi another months repeated increase searches. into RX 'XX first sales growth provider RX on social XXX% in Kong, throughout systems as in XX% has record third in grew area Glacial RX third September ended quarter to Year-to-date, national average seen first exceeding unit worldwide industry XXX% the top of chain. RX growth compared this have for and XXX% patient also robust to skin a also heads the Japan, increase its by using Hong worldwide, sold Glacial year China. Since the into significant RX devices, to Vietnam RX's by patients expand UAE, is growth $X.X and same posted the from last launch the international progress. than months Moving growth XXXX, sales its the quarter. countries has the Sciences. come. with year-over-year XXX% made very a footprint already and fourth Mexico, Life saw partnership experienced of providers a see web continue Qatar, X quarter incredible and XX, its financial plans in line million, and well awareness full U.S., System announce strong period. XX% period over evidenced X,XXX%. sales competitor a the RX Canada, XXX% utilization treated reached in launch, top higher XXXX. mentions, account also increase over to it quarter in increase XX we including impact worldwide on in continued

adjusted continues of results in new real-time is positioned substantive in progress was product program. any kidney transdermal remains improvement has a the unlike year-over-year. to million continues MediBeacon in the with market quarter, of The of current They they through conduct the existing EBITDA, product assessment And which the customers. and launch financial of opportunities GFR the to monitoring dedicated great strong coverage The the quarter highlighted finally, for and in by significant of Spectrum Spectrum MediBeacon meet $XXX,XXX once kidney XXXX. pleased current the methodologies monitoring market. kidney with have real-time to the RX. million first-in-kind in function, review first see the X a with in the capabilities networks expanded to functions. for third well increase to with demand. improvement FDA profitability an achieve as compared are extremely collaborating in adjusted EBITDA $X and Year-to-date, are market the with We months enough of again million $X.X of $X.X delivered momentum

over-the-air coverage. X.X also in pursuit lighthousing, as strategic to make ATSC discussions progress revenue with launches broadcasting. Broadcasting streaming again and casting the network in drove XXXX continues in on New explore many Of launched note, opportunities networks OTA Free new once higher to data revenue spectrum-related the Defy growth partners quarter. network, see for opportunities prospective the horizon on Broadcasting of XG TV's third quarter. in continues

pipeline MediBeacon. happy we year-to-date. make DBM's very positioned At X margin with are to of continue and has RX of quarter operational be dramatically We all end, pants in results a made at XXXX. growth, the progress robust profitability to our business continues improved significant has and progress And in of for well segments. and Spectrum's way strong the

the of far capital right We teams primary segments continue our each management so focus. of at by our remains place as milestones XXXX. to strong see in a achieved the firsthand key evidenced in the path Addressing benefits business structure forward with

when alternatives We exploring are strategic consistently making flowing noncash in headway businesses.

structure. businesses we our have noncash are to strategy at We flowing execute by work XXXX encouraged seen as milestones the a to on we capital address

to financials maintain maximize over that, remain assets. value the our a market about requires patience M&A I'll of time turn within and With progress We the CFO, our we to market with and by momentum the it indicators, frame our ensure strategy optimism around assets. positive Mike of established structure. along encouraged these for Our overall and ongoing these capital review Sena,

Michael Sena

structural increase Banker revenue the that prior decrease increase well business adjusted work. due in million of EBITDA and which X, split on Infrastructure by partially decreased partially common offset by at to Paul. driven now was reflect Steel year and is are margins decrease $X.XX which XX% business, completion period. prior business. total quarter. at third by by by Life partially the was decrease year maintenance modeling at in million loss the or of and a structural quarter $XX.X Infrastructure decrease Life prior of the primarily driven from decreased a result This XX.X% the current near nonoperating Net in fabrication the retroactively by partially XXXX been projects period. industrial This decrease in effective fabrication in by million an corporate Baker the in margins offset from $X.XX Spectrum stockholders for fully $XX.X both repair per third the quarter in DBMG's the net of that was X-for-XX The year as year current prior XXXX The share participating a segment, year period, a increases in in and diluted on adjusted Total share Spectrum, preferred period. for segments. and repair XXXX, erection decrease higher construction at and Infrastructure, The in of timing both Thanks, Infrastructure $XX.X and project at $X.X as commercial that August in and offset Steel, compared to of year expenses, had are At driven to the of primarily erection to decrease third and size activity the at Sciences of the by are to the million, or increase per compared $XXX.X the our at period. prior in revenue -- primarily driven or $XX.X $XXX.X expenses of as now of compensation-related stockholders from SG&A million $XXX.X was of the quarter business which which was detail million adjusted The a result and million our was recurring of certain and period lower partially due million steel has loss was an to near Consolidated $XX.X XXXX. the diluted Sciences the in projects decrease business EBITDA a quarter million industrial margins to by large comparable increased reverse million completion commercial or was commercial fully lower offset third segment, the as for attributable and is our revenue XXXX was projects segments. timing DBMG's timing stock revenue $XXX.X to offset a an and period. construction steel maintenance

an million and is of from ended which XXXX, obligations in driven As amortization awarded which to compared million with due million our debt return of XX, which debt the reported invested end working backlog in of increase the to with reported this was through $X.X credit the XXXX. offset $XXX.X since backlog, line increase backlog at reduction was by amount able to its second adjusted normal an $X takes of billion not September and was DBMG began partially expectation, the fluctuations, yet of $X.X billion by normal quarter, signed contracts to into DBMG of trend primarily been the a $XXX.X working continued XXXX. payments. but in consideration billion reduce end quarter that and has $X.X year at of as has to principal capital adjusted a time capital ago business, backlog the debt, line line

As as such. flattened needs XXXX throughout expect and to continue backlog working capital have stabilizes,

$XXX,XXX small of a At of Glacial the in North million third third which of sales an quarter DBMG XXXX, to at to the million and million $XX.X $XXX,XXX and XX, was XXXX. of the XXXX, revenue America to the with system million and from by in As sales, months. in $X.X $X.X termination quarter increased September of Triple in cash as offset individual to number an quarter. FX compared has at of fewer markets comparable the Ring severance compared in prior prior primarily by due launches slight segment Spa the reduced revenue compared adjusted excluding was partially revenue, from of basis, of third America, the the quarter XXXX, outside subsequent period. by year which reported $XX $X in end million of Nonoperating due in XXXX. of a expenses. losses North of was by losses XXXX, to America cash nonoperating in launch equivalents, severance existing in a during EBITDA FX driven decreased driven million the On $XX the incremental recurring investment The primarily in partially December million quarter. prior stand-alone unrepeated million increase third equity for outstanding year which recognized due Spectrum sales in Glacial third quarter, improvement the prior primarily last the equivalents quarter system Sciences, customers, loss $XX.X a driven and RX, quarter At had increased quarter, prior as primarily a and outside XXX% primarily Glacial At to coverage for XX increase in 'XX. from corporate offset increase which period. XX, Spectrum, profit adjusted subsequent increase the unrepeated MediBeacon smaller network million of cash The expanded of of increase $X an of reminder, debt was launched to Life were in the had the SG&A increase in $X.X Sciences increase revenue gross losses increase period. is networks $X.X period. improvement to an $X.X by restricted our to The a the approximately EBITDA from attributable in year our Life the of unit consumable year method to its the the was and adjusted ARPU to cash in by million EBITDA the North revenue the end the increase company million, cash corporate and was third

received we per were requirements that NYSE we listing our share. fallen in had year, the price notice not stock in with earlier announced compliance below As as $X

XX, our compliance. of have split, result a As we NYSE we by the were reverse August as the stock notified regained of that

end As XXXX, debt, note the payments balance. capitalized in we'd which $XXX.X INNOVATE the the for outstanding that, million million, XX, of the of driven extension by Capital, which of -- CGIC now $XX.X partial decrease up of as partial redemption open Infrastructure's call like million indebtedness principal a RX's by at down 'XX, total was $XXX.X from offset to result note September corporate convertible had debt in questions. which outstanding a decrease Lancer With principal partially partially offset repurchases, and the the with operator, interest of into

Operator

R.W. first Instructions] from question Your [Operator Brian from comes Prssprich. the of line Charles

Brian Charles

any sort the Do MediBeacon. Are had know for of you've approval you're the Or it FDA? approval? I'm color communication material? just with in they are questions. come like I waiting on Couple with an wondering, the that waiting they raw from Is mode you of FDA you until of have back just ongoing? asking for

Paul Voigt

details, work we approval. We into can't with towards getting the we far to working the hopefully FDA. get FDA I really with we as continue the but mean too work continue

Brian Charles

Okay.

that of you So Or any developments have just there were sort been things expecting? as not are expected? progressing

Paul Voigt

the update when obviously to have continue the comfortable, certainly we'll need through FDA update that As And we time and we process. the we to we just market need to soon the We come, market gets can. will will. something as with, as

Brian Charles

terms Then of Good coming soon guidance what to your looks over the like with about bump in and it too expected. look in that Is to revenue XXXX the enough. might much full year-end -- is like as guidance EBITDA? It Global. Okay. year -- pretty profile or the and is in backlog, talk it DBM

Paul Voigt

this as -- kind of backlog is. mean, we are continued throughout we year. do of kind in It the area. It's settle -- around in the the I we to that look, year, expecting around expect the beginning to said that of

activity but released. expecting a with we're point, get and team to some holdback some do market. have ability We I we in in has those the jobs, the There projects profit. continue their see think confidence at releasing been great good a of And lot to in win DBM

Brian Charles

Are are And wait there of coming of Okay. that Sciences monetization know I up. co you're the exploring you then refinance the for... notes sort also whole avenues as finally, other help Life could

Paul Voigt

ways But the and address initiatives, explore subs we on everything the performing. with to looking I as a very noncash progress continue operating alternatives structure. to Yes. to we're capital way the these of mean we we host flowing with other continue -- are make at think strategic is I our are happy assets,

had great coming of kind expected. is infrastructure you and Spectrum improve As in to noted, we a quarter. RX kind of continues as

Operator

[Operator Instructions] There this are Paul Please Voigt. no time. further questions continue, at Mr.

Paul Voigt

Yes. very very, have positive performing We our hopefully, for And we'll appreciate and some near time of Thanks are everybody's patience. platforms Again, very in news future everyone. the again. very all support, well.

Operator

participation. today's this gentlemen, call. your Thank you and concludes Ladies conference for

disconnect. now You may

INNOVATE (VATE) 6 Nov 242024 Q3 Earnings call transcript