INNOVATE Corp.

Good afternoon, and welcome to Innovate Corp's first quarter 2022 earnings conference call. All participants will be in listen-only mode. After prepared remarks and presentation, there will be a question and answer session. Please note, this event is being recorded. I would now like to turn the conference over to Anthony Rasmus with Investor Relations. Please go ahead.

Good afternoon. Thank you for being with us to review Innovate's first quarter 2022 earnings results. We are joined today by Avi Glazer, Chairman of Innovate, Wayne Barr, Jr., CEO of Innovate, and Mike Sena, Innovate's Chief Financial Officer. We have posted our earnings release and our slide presentation on our website at innovatecorp.com. We will begin our call with prepared remarks to be followed by a Q&A session. This call is also being simulcast and will be archived on our website. During this call, management may make certain statements and assumptions which are not historical facts will be forward-looking and are being made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements involve risks, assumptions, and uncertainties and are subject to certain assumptions and risk factors that could cause Innovate's actual results to differ materially from these forward-looking statements. The risk factors that could cause these differences are more fully discussed in the cautionary statement that is included in our earnings release and the slide presentation and further detailed in our 10-K and other filings with the SEC. In addition, the forward-looking statements included in this conference call are only made as of the date of this call and as stated in our SEC reports. Innovate disclaims any intent or obligation to update or revise these forward-looking statements except as expressly required by law. Management will also refer to certain non-GAAP financial measures, such as adjusted EBITDA. We believe that these measures provide useful supplemental data that, while not a substitute for GAAP measures, allow greater transparency in the review of our financial and operational performance. At this point, it is my pleasure to turn things over to Avi Glazer.

Good afternoon. Innovative has had a positive start to 2022, and we are pleased with our first quarter results. In the first quarter, consolidated revenue grew 140% and adjusted EBITDA increased 1,050%. We are seeing momentum across all three of our operating segments, infrastructure, life sciences, and spectrum. First, let's talk about infrastructure. The first quarter is historically a slow quarter for DBM. However, for the first quarter of 2022, DBM achieved record revenues of $402.2 million. making strong progress on bigger jobs while maintaining a healthy backlog number. For reference, in 2013, the year before we acquired GBM, they recorded $416 million for the entire fiscal year. We are thrilled with the outstanding progress being made in infrastructure. In life sciences, operations in R2 continue to ramp with 100 machines now on the market. and MetaBeacon plans to submit its investigational device exemption or IDE application to the FDA in the near term. This is the first step toward achieving approval to commence the pivotal study. Both of these companies are well positioned to take advantage of the immense opportunities for their products in each of their respective markets. And finally, Broadcasting has delivered six straight quarter profitability, underscoring the viability of that business model and its ability to continue to optimize operations and grow OTA revenues. We believe our first quarter performance speaks to the resilience of our model and our ability to deliver results despite unfavorable broader market conditions that pose challenges to all companies today, such as supply chain constraints and inflation, just to name a few. I'd like to reiterate that we believe we are still in the early stages of innovation transformation, and we remain excited about the growth prospects across our three operating segments as there is still plenty of runway in each of the respective businesses. With that, I am pleased to turn the call over to Wayne Barr, CEO of Innovate.