
News Room
SOURCE: HC2 Holdings, Inc.

August 10, 2015
16:01 ET
HC2 Holdings Reports Second Quarter 2015 Results
Net Revenue Up 39% Quarter-Over-Quarter to $281.0 Million; Adjusted
EBITDA of $30.8 Million From Our Primary Operating Subsidiaries, Up
117% From Q1
NEW YORK, NY--(Marketwired - Aug 10, 2015) - HC2 Holdings, Inc. ("HC2"
or the "Company") (NYSE MKT:
HCHC), a diversified holding company that focuses on acquiring,
investing in and operating businesses that it considers to be under-
or fairly valued and growing its acquired businesses, today announced
its consolidated results for the second quarter of fiscal 2015 ended
on June 30, 2015.
"We were very pleased with the results of our operating subsidiaries
during the second quarter, particularly with Schuff and Global Marine,
which more than doubled their combined Adjusted EBITDA compared to the
first quarter," said Philip Falcone, HC2's Chairman, President and
Chief Executive Officer. "We remain focused on our objective to build
long-term value through our methodical and value added acquisition
approach. As a result, we will continue to pursue highly attractive,
cash flow positive businesses in order to create value."
Second Quarter 2015 Financial Highlights:
-
Net revenue:
HC2 recorded total net revenues of $281.0 million for the second
quarter of 2015. Net revenue for the second quarter of 2015
increased $79.2 million, or 39%, when compared to last quarter's net
revenue of $201.8 million, primarily driven by the $57.2 million
growth of our Telecommunications segment. During the quarter, our
Telecommunications segment increase resulted from PTGi ICS's
successful overhaul of their global sales team and the expansion
into Latin America and other emerging markets.
-
Operating income:
Operating income for the second quarter was $3.3 million compared to
$0.8 million during the first quarter. The increase in operating
profit was largely the result of running our fabrication facilities
at or near full capacity for the quarter and our ability to sub
contract work at lower costs in our Manufacturing segment. This was
offset, in part by, early stage investments and increases in deal
related diligence expenses in Corporate and Other segments.
-
Adjusted EBITDA:
HC2 recorded consolidated Adjusted EBITDA of $19.5 million for the
second quarter of 2015, an increase of 230% when compared to last
quarter's Adjusted EBITDA of $5.9 million. Adjusted EBITDA for the
company's primary operating subsidiaries, Schuff and Global Marine,
was a combined $30.8 million during the quarter, an increase of
$16.6 million when compared to the first quarter largely due to the
factors listed above at Schuff along with seasonal trends at Global
Marine.
-
Balance sheet:
As of June 30, 2015, HC2 had consolidated cash, cash equivalents and
short-term investments of $81.2 million.
Additional Second Quarter Highlights and Recent Developments:
-
Schuff's backlog was $329.3 million as of June 30, 2015 compared to
$306.1 million as of March 31, 2015. Notable projects include the
Wilshire Grand Center in Los Angeles, the Sacramento Kings Arena,
and the new Apple headquarters in Cupertino, CA.
-
Global Marine secured a submarine fibre optic link contract with
Subsea 7, a global leader in subsea engineering and construction,
and won a pair of high-profile contracts from Tampnet, who operates
the largest offshore high-capacity communication network in the
world in the North Sea and the Gulf of Mexico. Global Marine will
also be collaborating again with Prysmian Group on a new project for
the Wikinger Offshore Wind Farm in the Baltic Sea.
-
Novatel Wireless announced it has signed a definitive agreement to
acquire 100% of the issued share capital of DigiCore Holdings
Limited, a leading provider of advanced machine-to-machine (M2M)
communication and telematics solutions.
-
HC2 signed a definitive agreement for the acquisition of long-term
care and life insurance businesses, United Teacher Associates
Insurance Company and Continental General Insurance Company,
establishing HC2's insurance platform, Continental Insurance Group
Ltd. This transaction is still on track to close by the end of the
third quarter.
-
Nervve announced an exclusive partnership with Wasserman Media
Group, a leading sports and entertainment agency, to bring Nervve's
visual search technology to market.
-
HC2 invested CAD$20 million (or approximately $16 million) in
convertible debentures of Gaming Nation Acquisition Corporation.
Gaming Nation, headquartered in Toronto, Ontario, is a leading
provider of both games of skill and games of chance designed for the
avid sports fan and daily fantasy sports participants.
-
Dusenberry Martin Racing, or DMi, Inc., launched its NASCAR® '15
racing game exclusively at GameStop for the Xbox 360 and PlayStation
3 in May 2015.
Non-GAAP Financial Measures and Other Information
The calculation of Adjusted EBITDA, as defined by us, consists of Net
income (loss) as adjusted for gain (loss) on sale or disposal of
assets; interest expense; amortization of debt discount; other income
(expense), net; foreign currency transaction gain (loss); income tax
(benefit) expense; loss from discontinued operations; noncontrolling
interest; share-based compensation expense; acquisition costs and
depreciation and amortization expense.
Management believes that Adjusted EBITDA is significant to gaining an
understanding of the Company's results as it is frequently used by the
financial community to provide insight into an organization's
operating trends and facilitates comparisons between peer companies,
since interest, taxes, depreciation, amortization and other
adjustments can differ greatly between organizations as a result of
differing capital structures and tax strategies. Adjusted EBITDA can
also be a useful measure of a company's ability to service debt. While
management believes that non-US GAAP measurements are useful
supplemental information, such adjusted results are not intended to
replace the Company's US GAAP financial results.
Conference Call
HC2 Holdings, Inc. will host a live conference call to discuss its
results on Monday, August 10, 2015 at 4:30 p.m. Eastern Daylight Time.
To join the event, participants may call 1.866.395.3893 (U.S. callers)
or 1.678.509.7540 (international callers), using conference ID number
98524143. Alternatively, a live webcast of the conference call can be
accessed by interested parties through the Investor Relations section
of the HC2 Website,
www.HC2.com.
For those unable to listen to the live broadcast of the conference
call, a telephonic replay of the call will be available through
midnight August 14, 2015 by dialing 1.855.859.2056 (U.S. callers) or
1.404.537.3406 (international callers), ID number 98524143. A replay
will also be available on the HC2 website.
Cautionary Statement Regarding Forward-Looking Statements
Safe Harbor Statement Under the Private Securities Litigation Reform
Act of 1995: This release contains, and certain oral statements made
by our representatives from time to time may contain, forward-looking
statements. Generally, forward-looking statements include information
describing actions, events, results, strategies and expectations and
are generally identifiable by use of the words "believes," "expects,"
"intends," "anticipates," "plans," "seeks," "estimates," "projects,"
"may," "will," "could," "might," or "continues" or similar
expressions. These statements are based on the beliefs and assumptions
of HC2's management and the management of HC2's subsidiaries. The
Company believes these judgments are reasonable, but you should
understand that these statements are not guarantees of performance or
results, and the Company's actual results could differ materially from
those expressed in the forward-looking statements due to a variety of
important factors, both positive and negative, that may be revised or
supplemented in subsequent reports on Forms 10-K, 10-Q and 8-K.
Factors that could cause actual results, events and developments to
differ include, without limitation, capital market conditions, the
ability of HC2's subsidiaries to generate sufficient net income and
cash flows to make upstream cash distributions, trading
characteristics of the HC2 common stock, the ability of HC2 and its
subsidiaries to identify any suitable future acquisition
opportunities, our ability to realize efficiencies, cost savings,
income and margin improvements, growth, economies of scale and other
anticipated benefits of strategic transactions, integrating financial
reporting of acquired or target businesses, completing pending and
future acquisitions and dispositions, litigation and other contingent
liabilities, changes in regulations, taxes and risks that may affect
the performance of the operating subsidiaries of HC2. Additional
information concerning these and other factors can be found in our
filings with the Securities and Exchange Commission, including our
most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q
and Current Reports on Form 8-K.
You should not place undue reliance on forward-looking statements. All
forward-looking statements attributable to the Company or persons
acting on its behalf are expressly qualified in their entirety by the
foregoing cautionary statements. All such statements speak only as of
the date made, and the Company undertakes no obligation to update or
revise publicly any forward-looking statements, whether as a result of
new information, future events or otherwise.
About HC2
HC2 Holdings, Inc. is a publicly traded (NYSE MKT:
HCHC), diversified holding company, which seeks to acquire and
grow attractive businesses that generate sustainable free cash flow.
HC2 has a diverse array of operating subsidiaries, across a broad set
of industries, including, but not limited to, telecom/infrastructure,
large-scale U.S. construction, energy, subsea services and life
sciences. HC2 seeks opportunities that generate attractive returns and
significant cash flow in order to maximize value for all stakeholders.
Currently, HC2's largest operating subsidiaries are Schuff, a leading
structural steel fabricator in the United States, and Global Marine, a
leading global offshore engineering company focused on subsea cable
installation and maintenance. Founded in 1994, HC2 is headquartered in
Herndon, Virginia.
|
HC2 HOLDINGS,
INC. |
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS |
(in thousands,
except per share amounts) |
|
|
|
Three Months
Ended June 30, |
|
|
Six Months
Ended June 30, |
|
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
Services revenue |
|
$ |
147,841 |
|
|
$ |
42,111 |
|
|
$ |
221,559 |
|
|
$ |
85,465 |
|
Sales revenue |
|
|
133,141 |
|
|
|
54,475 |
|
|
|
261,231 |
|
|
|
54,475 |
|
Net revenue |
|
|
280,982 |
|
|
|
96,586 |
|
|
|
482,790 |
|
|
|
139,940 |
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue -
services |
|
|
134,589 |
|
|
|
39,530 |
|
|
|
196,509 |
|
|
|
80,637 |
|
|
Cost of revenue -
sales |
|
|
110,909 |
|
|
|
43,330 |
|
|
|
221,445 |
|
|
|
43,330 |
|
|
Selling, general
and administrative |
|
|
26,476 |
|
|
|
14,032 |
|
|
|
49,529 |
|
|
|
20,236 |
|
|
Depreciation and
amortization |
|
|
5,236 |
|
|
|
344 |
|
|
|
10,242 |
|
|
|
554 |
|
|
Loss on sale or
disposal of assets |
|
|
498 |
|
|
|
447 |
|
|
|
971 |
|
|
|
367 |
|
|
|
Total operating
expenses |
|
|
277,708 |
|
|
|
97,683 |
|
|
|
478,696 |
|
|
|
145,124 |
|
|
|
Income (loss) from
operations |
|
|
3,274 |
|
|
|
(1,097 |
) |
|
|
4,094 |
|
|
|
(5,184 |
) |
Interest expense |
|
|
(10,041 |
) |
|
|
(1,012 |
) |
|
|
(18,649 |
) |
|
|
(1,013 |
) |
Amortization of
debt discount |
|
|
(84 |
) |
|
|
(576 |
) |
|
|
(176 |
) |
|
|
(576 |
) |
Other income
(expense), net |
|
|
(4,937 |
) |
|
|
1,665 |
|
|
|
(4,744 |
) |
|
|
1,616 |
|
Foreign currency
transaction gain (loss) |
|
|
1,822 |
|
|
|
437 |
|
|
|
1,051 |
|
|
|
403 |
|
|
|
Loss from
continuing operations before income (loss) from equity investees
and income tax benefit (expense) |
|
|
(9,966 |
) |
|
|
(583 |
) |
|
|
(18,424 |
) |
|
|
(4,754 |
) |
Income (loss) from
equity investees |
|
|
1,429 |
|
|
|
- |
|
|
|
(1,259 |
) |
|
|
- |
|
Income tax benefit
(expense) |
|
|
(2,464 |
) |
|
|
(1,946 |
) |
|
|
3,369 |
|
|
|
(1,955 |
) |
|
|
Loss from
continuing operations |
|
|
(11,001 |
) |
|
|
(2,529 |
) |
|
|
(16,314 |
) |
|
|
(6,709 |
) |
Gain (loss) from
discontinued operations |
|
|
(11 |
) |
|
|
27 |
|
|
|
(20 |
) |
|
|
44 |
|
Loss from sale of
discontinued operations |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(784 |
) |
|
|
Net loss |
|
|
(11,012 |
) |
|
|
(2,502 |
) |
|
|
(16,334 |
) |
|
|
(7,449 |
) |
Less: Net (income)
loss attributable to noncontrolling interest |
|
|
(204 |
) |
|
|
(1,059 |
) |
|
|
57 |
|
|
|
(1,059 |
) |
|
|
Net loss
attributable to HC2 Holdings, Inc. |
|
|
(11,216 |
) |
|
|
(3,561 |
) |
|
|
(16,277 |
) |
|
|
(8,508 |
) |
Less: Preferred
stock dividends and accretion |
|
|
1,089 |
|
|
|
200 |
|
|
|
2,177 |
|
|
|
200 |
|
|
|
Net loss
attributable to common stock and participating preferred
stockholders |
|
$ |
(12,305 |
) |
|
$ |
(3,761 |
) |
|
$ |
(18,454 |
) |
|
$ |
(8,708 |
) |
Basic loss per
common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
continuing operations attributable to HC2 Holdings, Inc. |
|
$ |
(0.48 |
) |
|
$ |
(0.22 |
) |
|
$ |
(0.74 |
) |
|
$ |
(0.50 |
) |
|
Gain (loss) from
discontinued operations |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Loss from sale of
discontinued operations |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(0.05 |
) |
|
|
Net loss
attributable to HC2 Holdings, Inc. |
|
$ |
(0.48 |
) |
|
$ |
(0.22 |
) |
|
$ |
(0.74 |
) |
|
$ |
(0.55 |
) |
Diluted loss per
common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
continuing operations attributable to HC2 Holdings, Inc. |
|
$ |
(0.48 |
) |
|
$ |
(0.22 |
) |
|
$ |
(0.74 |
) |
|
$ |
(0.50 |
) |
|
Gain (loss) from
discontinued operations |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Loss from sale of
discontinued operations |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(0.05 |
) |
|
|
Net loss
attributable to HC2 Holdings, Inc. |
|
$ |
(0.48 |
) |
|
$ |
(0.22 |
) |
|
$ |
(0.74 |
) |
|
$ |
(0.55 |
) |
Weighted average
common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
25,514 |
|
|
|
16,905 |
|
|
|
24,838 |
|
|
|
15,780 |
|
|
Diluted |
|
|
25,514 |
|
|
|
16,905 |
|
|
|
24,838 |
|
|
|
15,780 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HC2 HOLDINGS,
INC. |
CONDENSED
CONSOLIDATED BALANCE SHEET |
(in thousands,
except per share amounts) |
|
|
|
June 30, |
|
December 31,
|
2015 |
|
|
2014 |
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents |
|
$ |
68,941 |
|
|
$ |
107,978 |
|
|
Short-term
investments |
|
|
12,265 |
|
|
|
4,867 |
|
|
Accounts
receivable (net of allowance for doubtful accounts receivable of
$2,345 and $2,760 at June 30, 2015 and December 31, 2014,
respectively) |
|
|
214,027 |
|
|
|
151,558 |
|
|
Costs and
recognized earnings in excess of billings on uncompleted contracts |
|
|
35,573 |
|
|
|
28,098 |
|
|
Deferred tax asset
- current |
|
|
1,701 |
|
|
|
1,701 |
|
|
Inventories |
|
|
17,796 |
|
|
|
14,975 |
|
|
Prepaid expenses
and other current assets |
|
|
23,746 |
|
|
|
22,455 |
|
|
Assets held for
sale |
|
|
8,597 |
|
|
|
3,865 |
|
|
|
Total current
assets |
|
|
382,646 |
|
|
|
335,497 |
|
Restricted cash |
|
|
7,188 |
|
|
|
6,467 |
|
Long-term
investments |
|
|
71,793 |
|
|
|
48,674 |
|
Property, plant
and equipment, net |
|
|
235,862 |
|
|
|
239,851 |
|
Goodwill |
|
|
29,649 |
|
|
|
27,990 |
|
Other intangible
assets, net |
|
|
27,987 |
|
|
|
31,144 |
|
Deferred tax asset
- long-term |
|
|
20,998 |
|
|
|
15,811 |
|
Other assets |
|
|
18,429 |
|
|
|
18,614 |
|
|
|
Total assets |
|
$ |
794,552 |
|
|
$ |
724,048 |
|
Liabilities,
temporary equity and stockholders' equity |
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
81,644 |
|
|
$ |
79,794 |
|
|
Accrued
interconnection costs |
|
|
31,551 |
|
|
|
9,717 |
|
|
Accrued payroll
and employee benefits |
|
|
19,222 |
|
|
|
20,023 |
|
|
Accrued expenses
and other current liabilities |
|
|
51,640 |
|
|
|
34,042 |
|
|
Billings in excess
of costs and recognized earnings on uncompleted contracts |
|
|
29,859 |
|
|
|
41,959 |
|
|
Accrued income
taxes |
|
|
912 |
|
|
|
512 |
|
|
Accrued interest |
|
|
2,847 |
|
|
|
3,125 |
|
|
Current portion of
long-term debt |
|
|
12,752 |
|
|
|
10,444 |
|
|
Current portion of
pension liability |
|
|
6,037 |
|
|
|
5,966 |
|
|
|
Total current
liabilities |
|
|
236,464 |
|
|
|
205,582 |
|
Long-term debt |
|
|
374,321 |
|
|
|
332,927 |
|
Pension liability |
|
|
28,501 |
|
|
|
31,244 |
|
Other liabilities |
|
|
7,754 |
|
|
|
1,617 |
|
|
|
Total liabilities |
|
|
647,040 |
|
|
|
571,370 |
|
Commitments and
contingencies (See Note 11) |
|
|
|
|
|
|
|
|
Temporary equity
(See Note 13) |
|
|
|
|
|
|
|
|
|
Preferred stock,
$0.001 par value - 20,000,000 shares authorized; Series A - 30,000
shares issued and outstanding at June 30, 2015 and December 31,
2014; Series A-1 - 10,000 and 11,000 shares issued and outstanding
at June 30, 2015 and December 31, 2014, respectively; Series A-2 -
14,000 and 0 shares issued and outstanding at June 30, 2015 and
December 31, 2014, respectively |
|
|
53,013 |
|
|
|
39,845 |
|
Stockholders'
equity: |
|
|
|
|
|
|
|
|
|
Common stock,
$0.001 par value - 80,000,000 shares authorized; 25,623,982 and
23,844,711 shares issued and 25,592,356 and 23,813,085 shares
outstanding at June 30, 2015 and December 31, 2014, respectively |
|
|
26 |
|
|
|
24 |
|
|
Additional paid-in
capital |
|
|
150,537 |
|
|
|
147,081 |
|
|
Accumulated
deficit |
|
|
(58,157 |
) |
|
|
(41,880 |
) |
|
Treasury stock, at
cost - 31,626 shares at June 30, 2015 and December 31, 2014,
respectively |
|
|
(378 |
) |
|
|
(378 |
) |
|
Accumulated other
comprehensive loss |
|
|
(20,139 |
) |
|
|
(15,178 |
) |
|
|
Total HC2
Holdings, Inc. stockholders' equity before noncontrolling interest |
|
|
71,889 |
|
|
|
89,669 |
|
|
Noncontrolling
interest |
|
|
22,610 |
|
|
|
23,164 |
|
|
|
Total
stockholders' equity |
|
|
94,499 |
|
|
|
112,833 |
|
Total
liabilities, temporary equity and stockholders' equity |
|
$ |
794,552 |
|
|
$ |
724,048 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HC2 HOLDINGS,
INC. |
ADJUSTED EBITDA |
(in thousands) |
|
|
|
Manufacturing
Three Months Ended
June 30, 2015 |
|
|
Marine Services
Three Months Ended
June 30, 2015 |
|
|
Telecommunications
Three Months Ended
June 30, 2015 |
|
|
Other (1)
Three Months Ended
June 30, 2015 |
|
|
HC2 Holdings,
Inc.
Three Months Ended
June 30, 2015 |
|
Net income (loss) |
|
$ |
5,878 |
|
|
$ |
10,360 |
|
|
$ |
587 |
|
|
$ |
(28,041 |
) |
|
$ |
(11,216 |
) |
Adjustments to
reconcile net income (loss) to Adjusted EBIT: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Gain) loss on
sale or disposal of assets |
|
|
498 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
498 |
|
|
Interest expense |
|
|
366 |
|
|
|
963 |
|
|
|
- |
|
|
|
8,712 |
|
|
|
10,041 |
|
|
Amortization of
debt discount |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
84 |
|
|
|
84 |
|
|
Other (income)
expense, net |
|
|
(7 |
) |
|
|
(35 |
) |
|
|
(1 |
) |
|
|
4,980 |
|
|
|
4,937 |
|
|
Foreign currency
transaction (gain) loss |
|
|
- |
|
|
|
(1,354 |
) |
|
|
(468 |
) |
|
|
- |
|
|
|
(1,822 |
) |
|
Income tax
(benefit) expense |
|
|
4,334 |
|
|
|
6 |
|
|
|
- |
|
|
|
(1,876 |
) |
|
|
2,464 |
|
|
Loss from
discontinued operations |
|
|
11 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
11 |
|
|
Noncontrolling
interest |
|
|
499 |
|
|
|
- |
|
|
|
- |
|
|
|
(295 |
) |
|
|
204 |
|
|
Share-based
payment expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,365 |
|
|
|
2,365 |
|
|
Acquisition costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,969 |
|
|
|
1,969 |
|
|
|
Adjusted EBIT |
|
|
11,579 |
|
|
|
9,940 |
|
|
|
118 |
|
|
|
(12,102 |
) |
|
|
9,535 |
|
|
Depreciation and
amortization |
|
|
498 |
|
|
|
4,080 |
|
|
|
98 |
|
|
|
560 |
|
|
|
5,236 |
|
|
Depreciation and
amortization (included in cost of revenue) |
|
|
1,932 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,932 |
|
|
Foreign currency
(gain) loss (included in cost of revenue) |
|
|
- |
|
|
|
2,758 |
|
|
|
- |
|
|
|
- |
|
|
|
2,758 |
|
|
|
Adjusted EBITDA |
|
$ |
14,009 |
|
|
$ |
16,778 |
|
|
$ |
216 |
|
|
$ |
(11,542 |
) |
|
$ |
19,461 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Other also
includes Utilities, Life Sciences and
Corporate. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Manufacturing
Three Months Ended
March 31, 2015 |
|
|
Marine Services
Three Months Ended
March 31, 2015 |
|
|
Telecommunications
Three Months Ended
March 31, 2015 |
|
|
Other (1)
Three Months Ended
March 31, 2015 |
|
|
HC2 Holdings,
Inc.
Three Months Ended
March 31, 2015 |
|
Net income (loss) |
|
$ |
3,188 |
|
|
$ |
1,607 |
|
|
$ |
(524 |
) |
|
$ |
(9,332 |
) |
|
$ |
(5,061 |
) |
Adjustments to
reconcile net income (loss) to Adjusted EBIT: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Gain) loss on
sale or disposal of assets |
|
|
423 |
|
|
|
- |
|
|
|
50 |
|
|
|
- |
|
|
|
473 |
|
|
Interest expense |
|
|
344 |
|
|
|
996 |
|
|
|
- |
|
|
|
7,268 |
|
|
|
8,608 |
|
|
Amortization of
debt discount |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
92 |
|
|
|
92 |
|
|
Other (income)
expense, net |
|
|
(17 |
) |
|
|
- |
|
|
|
(5 |
) |
|
|
(171 |
) |
|
|
(193 |
) |
|
Foreign currency
transaction (gain) loss |
|
|
- |
|
|
|
448 |
|
|
|
322 |
|
|
|
1 |
|
|
|
771 |
|
|
Income tax
(benefit) expense |
|
|
2,569 |
|
|
|
6 |
|
|
|
- |
|
|
|
(8,408 |
) |
|
|
(5,833 |
) |
|
Loss from
discontinued operations |
|
|
9 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
9 |
|
|
Noncontrolling
interest |
|
|
85 |
|
|
|
- |
|
|
|
- |
|
|
|
(346 |
) |
|
|
(261 |
) |
|
Share-based
payment expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,235 |
|
|
|
2,235 |
|
|
|
Adjusted EBIT |
|
|
6,601 |
|
|
|
3,057 |
|
|
|
(157 |
) |
|
|
(8,661 |
) |
|
|
840 |
|
|
Depreciation and
amortization |
|
|
478 |
|
|
|
4,030 |
|
|
|
98 |
|
|
|
400 |
|
|
|
5,006 |
|
|
Depreciation and
amortization (included in cost of revenue) |
|
|
1,875 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,875 |
|
|
Foreign currency
(gain) loss (included in cost of revenue) |
|
|
- |
|
|
|
(1,823 |
) |
|
|
- |
|
|
|
- |
|
|
|
(1,823 |
) |
|
|
Adjusted EBITDA |
|
$ |
8,954 |
|
|
$ |
5,264 |
|
|
$ |
(59 |
) |
|
$ |
(8,261 |
) |
|
$ |
5,898 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Other also
includes Utilities, Life Sciences and
Corporate. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact Information
For More Information on HC2 Holdings, Inc., Please
Contact:
Ashleigh Douglas
ir@HC2.com
212-339-5875
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Marketwired L.P. All rights reserved. |
|