HC2 Holdings Reports First Quarter 2021 Results
- Portfolio Coalesces Around Infrastructure, Life Sciences and Spectrum -
- Pending Banker Steel Acquisition Adds to
- Pending Insurance Disposition Sharpens Focus and Adds
- Successful Debt Refinancing in February Significantly Enhances Capital Structure -
Financial Summary
(in millions, except per share amounts) | Three Months Ended |
|||||||||||||
2021 | 2020 | Increase / (Decrease) |
||||||||||||
Revenue | $ | 171.8 | $ | 186.6 | (7.9 | ) | % | |||||||
Net income (loss) attributable to common stock and participating preferred stockholders |
$ | 12.2 | $ | (83.5 | ) | 114.6 | % | |||||||
Income (loss) per share - Net income (loss) attributable to common stock and participating preferred stockholders |
$ | 0.15 | $ | (1.82 | ) | 108.2 | % | |||||||
Total Adjusted EBITDA | $ | 1.0 | $ | (2.9 | ) | 134.5 | % |
(1) Reconciliation of GAAP to Non-GAAP measures follows.
(2) Note that Total Adjusted EBITDA excludes results for discontinued operations.
Commentary
"The new HC2 is coming increasingly into focus,” stated
Barr added, "In the first quarter, we took significant steps forward in each of our three businesses. In Infrastructure, DBM is rebuilding its backlog and pipeline while working to complete the acquisition of Banker Steel, which is expected to substantially increase its revenue and Adjusted EBITDA. In Life Sciences, R2 officially launched Glacial Rx commercially in the
First Quarter 2021 Highlights
- HC2 completed the sale of its majority-owned Clean Energy subsidiary
Beyond6, Inc. toMercuria Investments US, Inc. for approximately$169 million . HC2, which owned 61% of Beyond6 on a fully diluted basis, received$70 million in net proceeds. The Clean Energy segment's operating results are presented as discontinued operations in the attached tables and are excluded from the discussion of the Company's results from continuing operations for the comparable periods. - HC2 completed a
$330 .0 million offering of 8.5% senior secured notes due 2026, the proceeds of which were used to retire the existing 11.5% senior secured notes due 2021 and to repay the outstanding indebtedness under the Company's revolving credit facility. As part of the refinancing of the senior secured notes, HC2 entered into exchange agreements with certain holders of$51 .8 million of the outstanding 7.5% convertible senior notes, extending the maturity date toAugust 1, 2026 . - HC2 amended its revolving credit facility, extending the maturity from
September 2021 toFebruary 2024 , increasing the maximum credit commitment from$15 million to$20 million , lowering the current borrowing rate under the agreement by 100 basis points, and updating certain affirmative and negative covenants. The Company applied part of the proceeds of the Beyond6 sale to repay all outstanding indebtedness under the credit facility. - HC2 signed a definitive agreement to sell its Insurance segment to
Continental General Holdings LLC , an affiliate ofMichael Gorzynski , a director of the Company and beneficial owner of approximately 6.6% of the Company's outstanding stock. The transaction is valued at approximately $90 million, inclusive of $65 million in cash plus securities, including certain HC2 affiliate securities held directly by the Insurance segment and is in the regulatory review process. The disposition of the Insurance business is expected to further sharpen HC2's strategic focus and strengthen the balance sheet. The Insurance segment's operating results are presented as discontinued operations in the attached tables and are excluded from the discussion of the Company's results from continuing operations for the comparable periods. DBM Global ("DBM") reached an agreement to acquire a 100% interest inBanker Steel Holdco LLC ("Banker Steel") for $145 million. Banker Steel provides fabricated structural steel and erection services primarily for theEast Coast and Southeast commercial and industrial construction market. The transaction, which is subject to a financing contingency and expected to close in the second quarter of 2021, expands DBM's geographic footprint and is expected to substantially increase its revenue and Adjusted EBITDA.
First Quarter Financial Highlights
- Revenue: For the first quarter of 2021, HC2 consolidated revenue from continuing operations was
$171.8 million , a decrease of 7.9% compared to$186.6 million for the prior year quarter. The decrease in revenue was driven by our Infrastructure segment, which had lower revenues from our structural steel fabrication and erection business, due to the timing of project work under execution and changes in backlog mix, as well as a decrease in power and industrial maintenance and repair work performed.
REVENUE by OPERATING SEGMENT | ||||||||||||
(in millions) | Three Months Ended |
|||||||||||
2021 | 2020 | Increase / (Decrease) |
||||||||||
Infrastructure | $ | 161.3 | $ | 176.5 | $ | (15.2 | ) | |||||
Spectrum | 10.5 | 10.1 | 0.4 | |||||||||
Consolidated HC2 | $ | 171.8 | $ | 186.6 | $ | (14.8 | ) |
- Net Income (Loss): For the first quarter of 2021, HC2 reported a Net Income attributable to common stock and participating preferred stockholders of
$12.2 million , or$0.15 per fully diluted share, compared to a Net Loss of$83.5 million , or$1.82 per fully diluted share, for the prior year quarter. The year-over-year change was primarily driven by Income (Loss) From Discontinued Operations, which in the current period includes a gain of$39 .2 million from the sale of Beyond 6, as compared the prior year quarter, which included a loss of$39 .3 million from the sale ofGlobal Marine System Limited .
NET INCOME (LOSS) by OPERATING SEGMENT | ||||||||||||
(in millions) | Three Months Ended |
|||||||||||
2021 | 2020 | Increase / (Decrease) |
||||||||||
Infrastructure | $ | — | $ | (0.1 | ) | $ | 0.1 | |||||
Life Sciences | (4.2 | ) | (3.2 | ) | (1.0 | ) | ||||||
Spectrum | (4.4 | ) | (5.5 | ) | 1.1 | |||||||
Non-operating Corporate | (30.8 | ) | (25.8 | ) | (5.0 | ) | ||||||
Other and Eliminations | 0.1 | 22.6 | (22.5 | ) | ||||||||
Net loss attributable to |
$ | (39.3 | ) | $ | (12.0 | ) | $ | (27.3 | ) | |||
Income (loss) from discontinued operations | 51.9 | (71.1 | ) | 123.0 | ||||||||
Net income (loss) attributable to |
$ | 12.6 | $ | (83.1 | ) | 95.7 | ||||||
Less: Preferred dividends and deemed dividends from conversions | 0.4 | 0.4 | — | |||||||||
Net income (loss) attributable to common stock and participating preferred stockholders | $ | 12.2 | $ | (83.5 | ) | $ | 95.7 |
- Adjusted EBITDA: For the first quarter of 2021, Total Adjusted EBITDA, which excludes discontinued operations, totaled
$1.0 million , compared to an Adjusted EBITDA loss of$2.9 million for the prior year quarter. The increase in Adjusted EBITDA was primarily attributable to increased contribution from the Infrastructure and Spectrum segments, and reduced Non-operating Corporate costs. This improvement was partially offset by increased spending in the current period by the Life Sciences segment to supportR2 Technologies in its commercialization efforts forGlacial Rx and Glacial Spa , and to further develop its product platform.
ADJUSTED EBITDA by OPERATING SEGMENT | ||||||||||||
(in millions) | Three Months Ended |
|||||||||||
2021 | 2020 | Increase / (Decrease) |
||||||||||
Infrastructure | $ | 11.3 | $ | 9.0 | $ | 2.3 | ||||||
Life Sciences | (6.2 | ) | (4.2 | ) | (2.0 | ) | ||||||
Spectrum | 0.8 | (1.0 | ) | 1.8 | ||||||||
Non-operating Corporate | (4.0 | ) | (5.0 | ) | 1.0 | |||||||
Other and Eliminations | (0.9 | ) | (1.7 | ) | 0.8 | |||||||
Total Adjusted EBITDA | $ | 1.0 | $ | (2.9 | ) | $ | 3.9 |
- Balance Sheet: As of
March 31, 2021 , HC2 had cash and cash equivalents (excluding discontinued operations) of$54.2 million compared to$43.8 million as ofDecember 31, 2020 . On a stand-alone basis, as ofMarch 31, 2021 , the Corporate segment had cash and cash equivalents of$36.4 million compared to$27.5 million atDecember 31, 2020 .
First Quarter 2021 Segment Highlights
- Infrastructure
DBM Global continued to be impacted by the timing and mix of project backlog, as well as from the COVID-19 pandemic, which has resulted in declines in power and industrial maintenance and repair work performed. The business is seeing signs of new projects being released and expects to benefit over the coming years from the expected passage of a federal infrastructure spending bill. The pending acquisition of Banker Steel is expected to bolster its ability to participate in infrastructure capital projects as well as continuing growth in commercial and industrial construction markets.- For the first quarter of 2021, DBM reported revenue of
$161.3 million , a decrease of 8.6% compared to$176.5 million in the prior year quarter. Net Income was zero, compared to Net Loss of$0.1 million for the prior year quarter. Adjusted EBITDA increased to$11.3 million from$9.0 million in the prior year quarter. - DBM's total backlog increased to
$522.7 million as ofMarch 31, 2021 , up from$394 .5 million as ofDecember 31, 2020 . Taking into consideration awarded, but not yet signed contracts, backlog would have been approximately$768 million at the end of the first quarter of 2021, compared to$608 million at the end of the fourth quarter of 2020.
- Life Sciences
- Through Pansend Life Sciences, HC2 is strategically focused on the development of innovative technologies and products in the healthcare industry and is currently invested in four companies. The investments with the greatest potential for value creation in the near-term are
R2 Technologies ("R2") (aesthetic dermatology) and MediBeacon (kidney monitoring). - In April, R2 officially launched commercial shipments to
U.S. aesthetic providers for Glacial Rx™, its FDA-cleared device utilizing patented CryoAesthetic technology. The Glacial Rx System is an FDA Class II Device administered by trained healthcare professionals.
- Through Pansend Life Sciences, HC2 is strategically focused on the development of innovative technologies and products in the healthcare industry and is currently invested in four companies. The investments with the greatest potential for value creation in the near-term are
- Spectrum
HC2 Broadcasting is executing against its strategy to deliver high-quality content to a growing base of over-the-air ("OTA") TV households through a carrier-class, nationwide broadcast TV distribution platform. The Spectrum segment is focused on generating growth in commercial carriage through both lease and revenue share arrangements with digital content providers, while continuing to improve its operations, and will be selectively adding 17 new stations to its already industry-leading 228 broadcast stations.- For the first quarter of 2021,
HC2 Broadcasting reported revenue of$10.5 million , an increase of 4.0% compared to$10.1 million in the prior year quarter. The improvement was driven by an increase inStation Group revenue attributable to the greater number of OTA stations in operation, partially offset by lower Network revenue driven by unrepeated political campaign expenditures andU.S. census advertising campaigns in the comparable period. - For the first quarter of 2021,
HC2 Broadcasting reported Net Loss of$4.4 million compared to$5.5 million in the prior year quarter. Adjusted EBITDA was$0.8 million , compared to an Adjusted EBITDA loss of$1.0 million in the prior year quarter.HC2 Broadcasting's results for the quarter reflect significant efforts to improve operations which led to the second consecutive quarter of positive Adjusted EBITDA. - As of
March 31, 2021 ,HC2 Broadcasting operates 228 stations, of which 207 are currently connected to the Company’s CentralCast system, which was relocated toMiami this quarter. The totalHC2 Broadcasting footprint includes operating stations in 94 markets in theU.S. andPuerto Rico , including 34 of the top 35 DMAs.
Conference Call
HC2 will host a live conference call to discuss its first quarter 2021 financial results and operations today at
- Live Webcast and Call. A live webcast of the conference call can be accessed by interested parties through the Investor Relations section of the HC2 website at ir.hc2.com.
- Dial-in: 1-877-705-6003 (Domestic Toll Free) / 1-201-493-6725 (Toll/International)
- Participant Entry Number: 13719067
- Conference Replay*
- Dial-in: 1-844-512-2921 (Domestic Toll Free) / 1-412-317-6671 (Toll/International)
- Conference Number: 13719067
*Available approximately two hours after the end of the conference call through
About HC2
Contacts
Investor Contact:
FNK IR
ir@hc2.com
(212) 235-2691
Media Contact:
Reevemark
HC2@reevemark.com
(212) 433-4600
Non-GAAP Financial Measures
In this press release, HC2 refers to certain financial measures that are not presented in accordance with
Adjusted EBITDA
Management believes that Adjusted EBITDA provides investors with meaningful information for gaining an understanding of our 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 the other items listed in the definition of Adjusted EBITDA below 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-
The calculation of Adjusted EBITDA, as defined by us, consists of Net income (loss) as adjusted for discontinued operations; depreciation and amortization; Other operating (income) expense, which is inclusive of (gain) loss on sale or disposal of assets, lease termination costs, asset impairment expense and
Management recognizes that using Adjusted EBITDA as a performance measure has inherent limitations as an analytical tool as compared to net income (loss) or other GAAP financial measures, as these non-GAAP measures exclude certain items, including items that are recurring in nature, which may be meaningful to investors.
Cautionary Statement Regarding Forward-Looking Statements
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press 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. Such forward-looking statements are based on current expectations and inherently involve certain risks, assumptions and uncertainties. The forward-looking statements in this presentation include, without limitation, any statements regarding our expectations regarding entering definitive agreements in respect of and consummating potential divestitures of any of our subsidiaries, our ability to successfully consummate previously announced acquisitions, HC2’s inability to predict the extent to which the COVID-19 pandemic and related impacts will continue to adversely impact HC2’s business operations, financial performance, results of operations, financial position, the prices of HC2’s securities and the achievement of HC2’s strategic objectives, and changes in macroeconomic and market conditions and market volatility (including developments and volatility arising from the COVID-19 pandemic), including interest rates, the value of securities and other financial assets, and the impact of such changes and volatility on HC2’s financial position. Such statements are based on the beliefs and assumptions of HC2’s management and the management of HC2’s subsidiaries and portfolio companies.
The Company believes these judgments are reasonable, but you should understand that these statements are not guarantees of performance, results or the creation of stockholder value and the Company’s actual results could differ materially from those expressed or implied in the forward-looking statements due to a variety of important factors, both positive and negative, including those that may be identified in subsequent statements and reports filed with the
Although HC2 believes its expectations and assumptions regarding its future operating performance are reasonable, there can be no assurance that the expectations reflected herein will be achieved. These risks and other important factors discussed under the caption “Risk Factors” in our most recent Annual Report on Form 10-K filed with the
You should not place undue reliance on forward-looking statements. All forward-looking statements attributable to HC2 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 unless legally required, HC2 undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share amounts)
(Unaudited)
Three Months Ended |
||||||||
2021 | 2020 | |||||||
Revenue | $ | 171.8 | $ | 186.6 | ||||
Cost of revenue | 141.3 | 156.8 | ||||||
Gross Profit | 30.5 | 29.8 | ||||||
Operating expenses: | ||||||||
Selling, general and administrative | 37.1 | 38.9 | ||||||
Depreciation and amortization | 3.9 | 4.3 | ||||||
Other operating loss | 0.4 | 0.2 | ||||||
Loss from operations | (10.9 | ) | (13.6 | ) | ||||
Other (expense) income: | ||||||||
Interest expense | (21.4 | ) | (19.2 | ) | ||||
Loss on early extinguishment or restructuring of debt | (10.8 | ) | (5.8 | ) | ||||
Loss from equity investees | (2.1 | ) | (2.5 | ) | ||||
Other income | 3.4 | 1.5 | ||||||
Loss from continuing operations before income taxes | (41.8 | ) | (39.6 | ) | ||||
Income tax (expense) benefit | (1.1 | ) | 9.7 | |||||
Loss from continuing operations | (42.9 | ) | (29.9 | ) | ||||
Income (loss) from discontinued operations (including gain on disposal of disposal of |
51.9 | (71.1 | ) | |||||
Net income (loss) | 9.0 | (101.0 | ) | |||||
Net income (loss) attributable to noncontrolling interest and redeemable noncontrolling interest | 3.6 | 17.9 | ||||||
Net income (loss) attributable to |
12.6 | (83.1 | ) | |||||
Less: Preferred dividends and deemed dividends from conversions | 0.4 | 0.4 | ||||||
Net income (loss) attributable to common stock and participating preferred stockholders | $ | 12.2 | $ | (83.5 | ) | |||
Loss per common share - continuing operations | ||||||||
Basic | $ | (0.51 | ) | $ | (0.60 | ) | ||
Diluted | $ | (0.51 | ) | $ | (0.60 | ) | ||
Income (loss) per common share - discontinued operations | ||||||||
Basic | $ | 0.66 | $ | (1.22 | ) | |||
Diluted | $ | 0.66 | $ | (1.22 | ) | |||
Income (loss) per share - Net income (loss) attributable to common stock and participating preferred stockholders | ||||||||
Basic | $ | 0.15 | $ | (1.82 | ) | |||
Diluted | $ | 0.15 | $ | (1.82 | ) | |||
Weighted average common shares outstanding: | ||||||||
Basic | 76.9 | 45.9 | ||||||
Diluted | 76.9 | 45.9 |
CONDENSED CONSOLIDATED BALANCE SHEET
(in millions, except share amounts)
(Unaudited)
2021 |
2020 |
|||||||||
Assets | ||||||||||
Current assets | ||||||||||
Cash and cash equivalents | $ | 54.2 | $ | 43.8 | ||||||
Accounts receivable, net | 186.4 | 184.7 | ||||||||
Costs and recognized earnings in excess of billings on uncompleted contracts | 65.7 | 55.6 | ||||||||
Assets held for sale | 5,592.8 | 5,942.1 | ||||||||
Other current assets | 21.3 | 20.1 | ||||||||
Total current assets | 5,920.4 | 6,246.3 | ||||||||
Investments | 52.7 | 55.4 | ||||||||
Deferred tax asset | 2.7 | 3.0 | ||||||||
Property, plant and equipment, net | 110.7 | 112.8 | ||||||||
110.9 | 111.0 | |||||||||
Intangibles, net | 167.1 | 172.1 | ||||||||
Other assets | 41.5 | 42.2 | ||||||||
Total assets | $ | 6,406.0 | $ | 6,742.8 | ||||||
Liabilities, temporary equity and stockholders’ equity | ||||||||||
Current liabilities | ||||||||||
Accounts payable | $ | 70.2 | $ | 69.7 | ||||||
Accrued liabilities | 78.6 | 77.1 | ||||||||
Current portion of debt obligations | 82.8 | 433.6 | ||||||||
Billings in excess of costs and recognized earnings on uncompleted contracts | 58.5 | 52.2 | ||||||||
Liabilities held for sale | 5,166.0 | 5,306.7 | ||||||||
Other current liabilities | 14.2 | 12.9 | ||||||||
Total current liabilities | 5,470.3 | 5,952.2 | ||||||||
Deferred tax liability | 6.9 | 7.0 | ||||||||
Debt obligations | 463.3 | 127.9 | ||||||||
Other liabilities | 34.0 | 39.8 | ||||||||
Total liabilities | 5,974.5 | 6,126.9 | ||||||||
Commitments and contingencies | ||||||||||
Temporary equity | ||||||||||
Preferred stock | 10.4 | 10.4 | ||||||||
Redeemable noncontrolling interest | 7.6 | 5.3 | ||||||||
Total temporary equity | 18.0 | 15.7 | ||||||||
Stockholders’ equity | ||||||||||
Common stock, |
0.1 | 0.1 | ||||||||
Shares authorized: 160,000,000 at |
||||||||||
Shares issued: 78,949,329 and 77,836,586 at respectively |
||||||||||
Shares outstanding: 77,564,273 and 76,726,835 at respectively |
||||||||||
Additional paid-in capital | 355.7 | 355.7 | ||||||||
respectively |
(5.2 | ) | (4.2 | ) | ||||||
Accumulated deficit | (176.1 | ) | (188.7 | ) | ||||||
Accumulated other comprehensive income | 215.1 | 396.9 | ||||||||
389.6 | 559.8 | |||||||||
Noncontrolling interest | 23.9 | 40.4 | ||||||||
Total stockholders’ equity | 413.5 | 600.2 | ||||||||
Total liabilities, temporary equity and stockholders’ equity | $ | 6,406.0 | $ | 6,742.8 |
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA
(Unaudited)
(in millions) | Three months ended |
|||||||||||||||||||||||
Infrastructure | Life Sciences | Spectrum | Non-operating Corporate |
Other and Eliminations |
HC2 | |||||||||||||||||||
Net Income (loss) attributable to |
$ | 12.6 | ||||||||||||||||||||||
Less: Discontinued operations | 51.9 | |||||||||||||||||||||||
Net Income (loss) attributable to excluding discontinued operations |
$ | — | $ | (4.2 | ) | $ | (4.4 | ) | $ | (30.8 | ) | $ | 0.1 | $ | (39.3 | ) | ||||||||
Adjustments to reconcile net income (loss) to Adjusted EBITDA: |
||||||||||||||||||||||||
Depreciation and amortization | 2.4 | — | 1.5 | — | — | 3.9 | ||||||||||||||||||
Depreciation and amortization (included in cost of revenue) | 2.3 | — | — | — | — | 2.3 | ||||||||||||||||||
Other operating (income) expenses | — | — | 0.4 | — | — | 0.4 | ||||||||||||||||||
Interest expense | 1.9 | — | 2.3 | 17.2 | — | 21.4 | ||||||||||||||||||
Other (income) expense, net | 0.2 | — | 0.4 | (4.0 | ) | — | (3.4 | ) | ||||||||||||||||
Loss on early extinguishment or restructuring of debt | — | — | 0.9 | 9.9 | — | 10.8 | ||||||||||||||||||
Income tax (benefit) expense | — | — | — | 1.1 | — | 1.1 | ||||||||||||||||||
Noncontrolling interest | — | (2.1 | ) | (0.5 | ) | — | (1.1 | ) | (3.7 | ) | ||||||||||||||
Share-based compensation expense | — | 0.1 | 0.1 | 0.4 | — | 0.6 | ||||||||||||||||||
Nonrecurring Items | 0.2 | — | — | 0.5 | — | 0.7 | ||||||||||||||||||
COVID-19 Costs | 3.9 | — | — | — | — | 3.9 | ||||||||||||||||||
Acquisition and disposition costs | 0.4 | — | 0.1 | 1.7 | 0.1 | 2.3 | ||||||||||||||||||
Adjusted EBITDA | $ | 11.3 | $ | (6.2 | ) | $ | 0.8 | $ | (4.0 | ) | $ | (0.9 | ) | $ | 1.0 |
(in millions) | Three months ended |
|||||||||||||||||||||||
Infrastructure | Life Sciences | Spectrum | Non-operating Corporate |
Other and Eliminations |
HC2 | |||||||||||||||||||
Net Income (loss) attributable to |
$ | (83.1 | ) | |||||||||||||||||||||
Less: Discontinued operations | (71.1 | ) | ||||||||||||||||||||||
Net Income (loss) attributable to excluding discontinued operations |
$ | (0.1 | ) | $ | (3.2 | ) | $ | (5.5 | ) | $ | (25.8 | ) | $ | 22.6 | $ | (12.0 | ) | |||||||
Adjustments to reconcile net income (loss) to Adjusted EBITDA: |
||||||||||||||||||||||||
Depreciation and amortization | 2.6 | — | 1.7 | — | — | 4.3 | ||||||||||||||||||
Depreciation and amortization (included in cost of revenue) | 2.3 | — | — | — | — | 2.3 | ||||||||||||||||||
Other operating (income) expenses | 0.2 | — | — | — | — | 0.2 | ||||||||||||||||||
Interest expense | 2.2 | — | 3.2 | 13.8 | — | 19.2 | ||||||||||||||||||
Loss on early extinguishment or restructuring of debt | — | — | — | 5.8 | — | 5.8 | ||||||||||||||||||
Other (income) expense, net | 0.2 | — | 0.6 | (2.4 | ) | — | (1.6 | ) | ||||||||||||||||
Income tax (benefit) expense | 0.2 | — | — | (0.4 | ) | (9.5 | ) | (9.7 | ) | |||||||||||||||
Noncontrolling interest | — | (1.0 | ) | (1.1 | ) | — | (15.7 | ) | (17.8 | ) | ||||||||||||||
Share-based compensation expense | — | — | 0.1 | 1.4 | — | 1.5 | ||||||||||||||||||
Nonrecurring Items | 0.9 | — | — | 1.4 | — | 2.3 | ||||||||||||||||||
COVID-19 Costs | 0.4 | — | — | — | — | 0.4 | ||||||||||||||||||
Acquisition and disposition costs | 0.1 | — | — | 1.2 | 0.9 | 2.2 | ||||||||||||||||||
Adjusted EBITDA | $ | 9.0 | $ | (4.2 | ) | $ | (1.0 | ) | $ | (5.0 | ) | $ | (1.7 | ) | $ | (2.9 | ) |
Source: HC2 Holdings, Inc.