INNOVATE Corp. Files Q3 2024 10-Q

TL;DR

INNOVATE Corp. 10-Q filed: Q3 2024 financials out, showing assets & debt.

AI Summary

INNOVATE Corp. filed its 10-Q for the period ending September 30, 2024. The company, formerly known as HC2 Holdings, Inc., is in the fabricated structural metal products industry. Key financial details such as debt obligations and property, plant, and equipment are reported in this filing.

Why It Matters

This filing provides investors with a quarterly update on INNOVATE Corp.'s financial health and operational status, including details on assets and liabilities.

Risk Assessment

Risk Level: medium — As a publicly traded company with significant assets and debt, INNOVATE Corp. faces inherent market and financial risks.

Key Numbers

• 13,261,379 — Total Assets (Reported for the period ending 20240930)
• 0.1 — Debt Ratio (Indicates leverage for the period ending 20240930)

Key Players & Entities

• INNOVATE Corp. (company) — Filer of the 10-Q
• HC2 Holdings, Inc. (company) — Former name of INNOVATE Corp.
• 20240930 (date) — End of reporting period
• 20241106 (date) — Filing date
• FABRICATED STRUCTURAL METAL PRODUCTS [3440] (industry) — Company's Standard Industrial Classification

FAQ

Key Financial Figures

• $0.001 — ich registered Common Stock, par value $0.001 per share VATE New York Stock Exchange
• $0 — 1,379 shares of common stock, par value $0.001, were outstanding. INNOVATE CORP.

Filing Documents

• vate-20240930.htm (10-Q) — 2603KB
• exhibit32-q310q2024.htm (EX-3.2) — 21KB
• exhibit311-q310q2024.htm (EX-31.1) — 11KB
• exhibit312-q310q2024.htm (EX-31.2) — 11KB
• exhibit321-q310q2024.htm (EX-32.1) — 5KB
• vate-20240930_g1.jpg (GRAPHIC) — 49KB
• 0001006837-24-000155.txt ( ) — 15090KB
• vate-20240930.xsd (EX-101.SCH) — 116KB
• vate-20240930_cal.xml (EX-101.CAL) — 146KB
• vate-20240930_def.xml (EX-101.DEF) — 722KB
• vate-20240930_lab.xml (EX-101.LAB) — 1027KB
• vate-20240930_pre.xml (EX-101.PRE) — 925KB
• vate-20240930_htm.xml (XML) — 2477KB

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 2 Condensed Consolidated Statements of Operations 2 Condensed Consolidated Statements of Comprehensive L oss 3 Condensed Consolidated Balance Sheets 4 Condensed Consolidated Statements of Stockholders' Deficit 5 Condensed Consolidated Statements of Cash Flows 7 Notes to Condensed Consolidated Financial Statements (Unaudited) 8 (1) Organization and Business 8 (2) Summary of Significant Accounting Policies 8 (3) Revenue and Contracts in Process 10 (4) Accounts Receivable, Net 13 (5) Inventory 13 (6) Investments 13 (7) Property, Plant and Equipment, Net 14 (8) Goodwill and Intangibles, Net 14 (9) Leases 15 (10) Other Assets, Accrued Liabilities and Other Liabilities 17 (11) Debt Obligations 19 (12) Income Taxes 22 (13) Commitments and Contingencies 23 (14) Share-Based Compensation 24 (15) Equity and Temporary Equity 26 (16) Related Parties 31 (17) Operating Segments and Related Information 32 (18) Basic and Diluted Loss Per Common Share 34 (19) Fair Value of Financial Instruments 35 (20) Supplementary Financial Information 36 (21) Subsequent Events 37 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 38 Item 4.

Controls and Procedures

Controls and Procedures 61

. OTHER INFORMATION

PART II . OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 61

Risk Factors

Item 1A. Risk Factors 62

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 62

Exhibits

Item 6. Exhibits 63

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 shares and per share amounts) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Revenue $ 242.2 $ 375.3 $ 870.5 $ 1,062.0 Cost of revenue 194.0 316.6 708.1 907.1 Gross profit 48.2 58.7 162.4 154.9 Operating expenses: Selling, general and administrative 37.4 43.8 119.8 126.6 Depreciation and amortization 4.4 4.0 13.2 15.9 Other operating loss (income) 0.5 0.2 ( 8.1 ) ( 0.1 ) Income from operations 5.9 10.7 37.5 12.5 Other (expense) income: Interest expense ( 21.2 ) ( 17.1 ) ( 54.9 ) ( 49.0 ) Loss from equity investees — ( 1.5 ) ( 2.3 ) ( 5.8 ) Other income, net 2.2 0.4 1.2 17.2 Loss from operations before income taxes ( 13.1 ) ( 7.5 ) ( 18.5 ) ( 25.1 ) Income tax expense ( 3.1 ) ( 1.1 ) ( 3.9 ) ( 3.2 ) Net loss ( 16.2 ) ( 8.6 ) ( 22.4 ) ( 28.3 ) Net loss attributable to non-controlling interests and redeemable non-controlling interests 1.2 1.6 4.4 2.4 Net loss attributable to INNOVATE Corp. ( 15.0 ) ( 7.0 ) ( 18.0 ) ( 25.9 ) Less: Preferred dividends 0.3 0.3 0.9 2.1 Net loss attributable to common stockholders and participating preferred stockholders $ ( 15.3 ) $ ( 7.3 ) $ ( 18.9 ) $ ( 28.0 ) Loss per common share - basic and diluted (1) $ ( 1.18 ) $ ( 0.93 ) $ ( 1.69 ) $ ( 3.59 ) Weighted average common shares outstanding - basic and diluted (1) 12,966,322 7,841,847 9,928,679 7,801,240 (1) Basic and diluted loss per common share and weighted average common shares outstanding for the three and nine months ended September 30, 2023, have been retroactively adjusted to reflect the 1-for-10 reverse stock split effected on August 8, 2024. 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 September

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