NEW YORK - INNOVATE Corp. (NYSE: VATE) reported a wider adjusted loss per share and a decline in revenue for the fourth quarter, as the company faced challenges across its operating segments.
The adjusted loss per share for the quarter was -$0.12, and consolidated revenue decreased to $361 million, an 11.8% drop from the $409.3 million reported in the same quarter last year.
The Infrastructure segment, which includes DBM Global Inc., saw a decrease in revenue by 10.9% to $353.8 million compared to the previous year, mainly due to the timing and size of projects in its commercial structural steel fabrication and erection business. Despite this, DBM Global managed to grow its gross margin and adjusted EBITDA margin year-over-year. The Life Sciences segment experienced strong North America unit sales growth, while the Spectrum segment faced a revenue decline primarily due to the cessation of operations at Azteca America network.
INNOVATE's net loss attributable to common stockholders expanded to $9.6 million, a 37.1% increase from the $7.0 million loss in the prior year's quarter. Total adjusted EBITDA for the quarter was $21.5 million, a decrease from $28.1 million in the fourth quarter of the previous year.
Following the earnings release, INNOVATE's stock was up 7.34%. The company's interim CEO, Paul Voigt, commented on the results, stating, "Despite a challenging market backdrop, DBM delivered strong results while expanding margin throughout the year." He also highlighted the progress towards FDA approval for MediBeacon in the Life Sciences segment and the exploration of 5G broadcasting opportunities in the Spectrum segment.
INNOVATE's balance sheet showed cash and cash equivalents of $80.8 million as of December 31, 2023, which was slightly higher than the $80.4 million from the end of the previous year. The company also noted that it received a notice from the New York Stock Exchange regarding its non-compliance with the minimum average share price requirement and is considering options to regain compliance.
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