INNOVATE Corp. Files 10-Q for Period Ending March 31, 2024

AI Summary

INNOVATE Corp. (VATE) filed a Quarterly Report (10-Q) with the SEC on May 7, 2024. INNOVATE Corp. filed its 10-Q report for the period ending March 31, 2024. The filing includes financial data for the first quarter of 2024. The company's principal business is in Fabricated Structural Metal Products. The filing references previous company names including HC2 HOLDINGS, INC. and PTGi HOLDING, INC. The company's business address is located at 295 MADISON AVENUE, 12TH FLOOR, NEW YORK, NY 10017.

Why It Matters

For investors and stakeholders tracking INNOVATE Corp., this filing contains several important signals. This 10-Q filing provides investors with the latest financial performance data for INNOVATE Corp. for the first quarter of 2024, enabling informed investment decisions. Understanding the company's historical name changes (HC2 HOLDINGS, INC., PTGi HOLDING, INC.) can provide context for its corporate evolution and strategic shifts.

Risk Assessment

Risk Level: — INNOVATE Corp. shows moderate risk based on this filing. The filing is a standard 10-Q, which is a routine quarterly report and does not indicate any unusual or high-risk events.

Analyst Insight

Review the detailed financial statements and management discussion within the 10-Q to assess INNOVATE Corp.'s current financial health and future outlook.

Key Numbers

• 2024-03-31 — Reporting Period End Date (Conformed Period of Report)
• 2024-05-07 — Filing Date (Filed as of Date)
• 3440 — Standard Industrial Classification (SIC code for Fabricated Structural Metal Products)

Key Players & Entities

• INNOVATE Corp. (company) — Filer name
• HC2 HOLDINGS, INC. (company) — Former company name
• PTGi HOLDING, INC. (company) — Former company name
• 295 MADISON AVENUE (company) — Business address street
• NEW YORK (company) — Business address city
• 10017 (company) — Business address zip

FAQ

Industry Context

INNOVATE Corp. operates within the Fabricated Structural Metal Products industry, which involves the manufacturing of metal components for construction and infrastructure.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to submit regular financial disclosures.

What Investors Should Do

1. Analyze the balance sheet for assets, liabilities, and equity as of March 31, 2024.
2. Review any disclosed revenue or net income figures for the quarter.
3. Examine the company's business description and any listed risk factors.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-07: Filing Date — Date the 10-Q report was officially filed with the SEC.

Year-Over-Year Comparison

This is the first 10-Q filing for the fiscal year 2024, providing an update from the previous year-end report (likely a 10-K).

Key Financial Figures

• $0.001 — ich registered Common Stock, par value $0.001 per share VATE New York Stock Exchange
• $0 — 2,032 shares of common stock, par value $0.001, were outstanding. INNOVATE CORP.

Filing Documents

• vate-20240331.htm (10-Q) — 1953KB
• exhibit104-q110q2024.htm (EX-10.4) — 18KB
• exhibit311-q110q2024.htm (EX-31.1) — 11KB
• exhibit312-q110q2024.htm (EX-31.2) — 11KB
• exhibit321-q110q2024.htm (EX-32.1) — 5KB
• vate-20240331_g1.jpg (GRAPHIC) — 49KB
• 0001006837-24-000079.txt ( ) — 13172KB
• vate-20240331.xsd (EX-101.SCH) — 109KB
• vate-20240331_cal.xml (EX-101.CAL) — 145KB
• vate-20240331_def.xml (EX-101.DEF) — 694KB
• vate-20240331_lab.xml (EX-101.LAB) — 961KB
• vate-20240331_pre.xml (EX-101.PRE) — 902KB
• vate-20240331_htm.xml (XML) — 2037KB

Financial Statements (Un a u dited)

Item 1. Financial Statements (Un a u dited) 2 Condensed Consolidated Statements of Operations 2 Condensed Consolidated Statements of Comprehensive Loss 3 Condensed Consolidated Balance Sheets 4 Condensed Consolidated Statements of Stockholders' Deficit 5 Condensed Consolidated Statements of Cash Flows 6 Notes to Condensed Consolidated Financial Statements (Unaudited) 7 (1) Organization and Business 7 (2) Summary of Significant Accounting Policies 7 (3) Revenue and Contracts in Process 10 (4) Accounts Receivable, Net 12 (5) Inventory 12 (6) Investments 12 (7) Property, Plant and Equipment, Net 13 (8) Goodwill and Intangibles, Net 14 (9) Leases 14 (10) Other Assets, Accrued Liabilities and Other Liabilities 16 (11) Debt Obligations 18 (12) Income Taxes 20 (13) Commitments and Contingencies 22 (14) Share-Based Compensation 23 (15) Temporary Equity and Equity 24 (16) Related Parties 31 (17) Operating Segments and Related Information 32 (18) Basic and Diluted Loss Per Common Share 33 (19) Fair Value of Financial Instruments 34 (20) Supplementary Financial Information 35 (21) Subsequent Events 35 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 36 Item 4.

Controls and Procedures

Controls and Procedures 53 P ART I I . OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 53

Risk Factors

Item 1A. Risk Factors 53

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 54

Exhibits

Item 6. Exhibits 54

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Unaudited Financial Statements

Item 1. Unaudited Financial Statements INNOVATE CORP. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, in millions, except per share amounts) Three Months Ended March 31, 2024 2023 Revenue $ 315.2 $ 317.9 Cost of revenue 266.6 274.3 Gross profit 48.6 43.6 Operating expenses: Selling, general and administrative 39.5 41.7 Depreciation and amortization 4.4 6.3 Other operating loss (income) 1.9 ( 0.4 ) Income (loss) from operations 2.8 ( 4.0 ) Other (expense) income: Interest expense ( 17.2 ) ( 15.6 ) Loss from equity investees ( 1.2 ) ( 4.0 ) Other (expense) income, net ( 1.2 ) 16.5 Loss from operations before income taxes ( 16.8 ) ( 7.1 ) Income tax expense ( 3.3 ) ( 0.9 ) Net loss ( 20.1 ) ( 8.0 ) Net loss (income) attributable to non-controlling interests and redeemable non-controlling interests 2.7 ( 1.0 ) Net loss attributable to INNOVATE Corp. ( 17.4 ) ( 9.0 ) Less: Preferred dividends 0.3 1.2 Net loss attributable to common stockholders $ ( 17.7 ) $ ( 10.2 ) Loss per share - basic and diluted $ ( 0.22 ) $ ( 0.13 ) Weighted average common shares outstanding - basic and diluted 78.7 77.7 The accompanying notes are an integral part of these condensed consolidated financial statements. 2 INNOVATE CORP. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited, in millions) Three Months Ended March 31, 2024 2023 Net loss $ ( 20.1 ) $ ( 8.0 ) Other comprehensive loss Foreign currency translation adjustment, net of tax ( 1.1 ) ( 1.0 ) Disposition of equity method investment, net of tax — ( 9.1 ) Other comprehensive loss $ ( 1.1 ) $ ( 10.1 ) Comprehensive loss ( 21.2 ) ( 18.1 ) Comprehensive loss attributable to non-controlling interests and redeemable non-controlling interests 2.8 1.7 Comprehensive loss attributable to INNOVATE Corp. $ ( 18.4 ) $ ( 16.4 ) The accompanying notes are an integral part of these condensed consolidated financial statements. 3 INNOVATE CORP. CONDENSED CONSOLIDATED

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View this 10-Q filing on SEC EDGAR