INNOVATE Corp
For the period ended Sep 30, 2024. Filed Nov 6, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 6, 2024
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(17) Operating Segments and Related Information
- Operating Segments and Related Information
The Company currently hasone primary reportable geographic segment - United States, and primarily all revenue is derived in the United States. The Company hasthree reportable operating segments, plus the Other segment, based on management’s organization of the enterprise - Infrastructure, Life Sciences, Spectrum, and Other. The Company also has a Non-Operating Corporate segment. All inter-segment transactions are eliminated on consolidation. There are no inter-segment revenues.
The Company's revenue concentrations of 10% and greater were as follows:
| Three Months Ended September 30, · Nine Months Ended September 30, | |||||
|---|---|---|---|---|---|
| Segment | 2024 | 2023 | 2024 | 2023 | |
| Customer A | Infrastructure | 11.1% | 26.8% | 17.7% | 27.5% |
| Customer B | Infrastructure | 12.9% | * | 10.5% | * |
| Customer C | Infrastructure | * | 13.9% | * | 12.9% |
*Less than 10% revenue concentration
Summarized financial information with respect to the Company’s operating segments is as follows (in millions):
| Three Months Ended September 30, | Nine Months Ended September 30, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| Revenue | ||||
| Infrastructure | $232.8 | $369.3 | $845.9 | $1,043.4 |
| Life Sciences | 3.0 | 0.6 | 5.7 | 1.8 |
| Spectrum | 6.4 | 5.4 | 18.9 | 16.8 |
| Total revenue | $242.2 | $375.3 | $870.5 | $1,062.0 |
| Three Months Ended September 30, | Nine Months Ended September 30, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| Income (loss) from operations | ||||
| Infrastructure | $12.3 | $20.9 | $57.1 | $41.9 |
| Life Sciences | (3.3) | (3.3) | (10.5) | (11.6) |
| Spectrum | (0.1) | (2.1) | 0.2 | (3.2) |
| Other | — | — | — | (1.9) |
| Non-Operating Corporate | (3.0) | (4.8) | (9.3) | (12.7) |
| Total income from operations | $5.9 | $10.7 | $37.5 | $12.5 |
| Three Months Ended September 30, | Nine Months Ended September 30, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| Reconciliation of the consolidated segment income from operations to consolidated (loss) from operations before income taxes: | ||||
| Income from operations | $5.9 | $10.7 | $37.5 | $12.5 |
| 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) |
| Three Months Ended September 30, | Nine Months Ended September 30, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| Depreciation and Amortization | ||||
| Infrastructure | $3.0 | $2.6 | $8.9 | $11.6 |
| Infrastructure recognized within cost of revenue | 3.7 | 3.8 | 11.5 | 11.7 |
| Total Infrastructure | 6.7 | 6.4 | 20.4 | 23.3 |
| Life Sciences | 0.1 | 0.1 | 0.3 | 0.3 |
| Life Sciences recognized within cost of revenue | — | — | 0.1 | 0.1 |
| Total Life Sciences | 0.1 | 0.1 | 0.4 | 0.4 |
| Spectrum | 1.3 | 1.3 | 3.9 | 3.9 |
| Non-Operating Corporate | — | — | 0.1 | 0.1 |
| Total depreciation and amortization | $8.1 | $7.8 | $24.8 | $27.7 |
| Three Months Ended September 30, | Nine Months Ended September 30, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| Capital Expenditures (*) | ||||
| Infrastructure | $2.8 | $5.5 | $10.7 | $12.5 |
| Life Sciences | — | — | 0.1 | 0.3 |
| Spectrum | 0.3 | 0.2 | 1.0 | 0.8 |
| Non-Operating Corporate | — | — | — | 0.3 |
| Total | $3.1 | $5.7 | $11.8 | $13.9 |
(*)The above capital expenditures exclude assets acquired under finance lease and other financing obligations.
| September 30,2024 | December 31, 2023 | |
|---|---|---|
| Investments | ||
| Life Sciences | $1.8 | $1.8 |
| Total | $1.8 | $1.8 |
The Company's equity method investments in the Life Sciences segment included in the table above totaled $0.9 million as of both September 30, 2024, and December 31, 2023.
| September 30,2024 | December 31, 2023 | |
|---|---|---|
| Total Assets | ||
| Infrastructure | $684.0 | $851.4 |
| Life Sciences | 12.4 | 8.3 |
| Spectrum | 176.7 | 176.6 |
| Non-Operating Corporate | 24.1 | 7.3 |
| Total | $897.2 | $1,043.6 |
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