Good day, ladies and gentlemen and welcome to the HC2 Holdings Inc. Third Quarter 2015 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and then instructions will follow at that time. [Operator Instructions]. As a reminder, this conference call is being recorded. I would now like to turn the conference over to Ashleigh Douglas, Director of Investor Relations. Please go ahead.

Thank you, Abigail and good morning everyone. Welcome to HC2’s conference call. We also invite you to follow along with our webcast presentation, which can be accessed on HC2’s website under the Investor Relations section. With me today are Philip Falcone, Chairman, President and CEO of HC2; and Michael Sena, our Chief Financial Officer, Hladek, our Chief Operating Officer will also be participating on the call today as part of the question-and-answer session. As a reminder, this call cannot be taped or otherwise duplicated without the company’s prior consent. Before we begin, I will remind everyone that this presentation may contain forward-looking statements and as such are subject to risks and uncertainties that we discussed in detail in our documents filed with the SEC, specifically the most recent reports on Form 10-K, Form 10-Q and Form 8-K, which identify important risk factors that could cause actual results to differ materially from those contained in forward-looking statements. During the call, management will provide certain information that will constitute non-GAAP financial measures under the SEC rules such as for forma net revenue and adjusted EBITDA. Certain information required to be disclosed about these non-GAAP measures, including reconciliations with the most comparable GAAP measures, is available in the most recent earnings press release. With that, we’ll begin the call by turning it over to Philip Falcone.

Thanks, Ashleigh, and good morning everybody. And thanks for joining the call today. I want to coordinate today’s discussion with the slide presentation, so I just want to make sure we are on Page 4 with the third quarter highlights and recent developments. We’re pleased to update you on the continued execution of our diversified holding company model. HC2 yielded strong year-over-year growth during the third quarter, which demonstrates the progress we’ve made building the businesses, over the course of the past year. On the agenda today, I will start with a brief recap of the results this quarter and will also provide a few operational highlights from our primary operating subsidiaries. We will end with a bit more detailed financial overview of the quarter and then ask the operator to turn the call over to a question-and-answer session. So, just some of the quick highlights here. Obviously, we continue to perform as we expected, the strategy of acquiring, building diversified operating company contributed to a solid third quarter result. Our net revenue totaled $277 million in quarter three, a 55% increase compared to quarter three 2014, and a 24% increase on a pro-forma basis from the Q3 2014. Total adjusted EBITDA totaled $14 million in Q3 2015 and $39.4 million in the first nine months. I think that when you see, when I walk you through these numbers, you’ll see how we’re calculating EBITDA, and I think you will be pleasantly surprised, adjusted EBITDA attributable to the manufacturing in Marine Services $24.7 million Q3, and $69.8 million year-to-date. Our Telecom segment enjoyed a positive adjusted EBITDA for the second consecutive quarter bringing year-to-date adjusted EBITDA to $1 million. And if you recall, this was a discontinued business for us when we acquired the shell company, PTGI was losing maybe…

Thanks Phil and good morning everyone. I wanted to just take a few minutes to break down our results for the quarter. Book value [ph] continues on similar trends for the year-to-date trends covered earlier. I’ll start off with a discussion around net revenues for the quarter as compared to the prior year, and then as compared to the second quarter. Moving on to Slide 11, net revenues increased $98 or 54.6% to $277.5 million for the three months ended September 30, 2015 from $179.4 million for the same period in 2014. On a pro forma basis, assuming the Global Marine acquisition occurred at the beginning of the quarter, revenues increased $53.5 million. This increase was primarily due to the expansion into the Latin America and other emerging markets in our Telecommunication segment and was offset in part by declines in our manufacturing segment due to projects in the Midwest and Gulf Coast regions of the United States, particularly in the industrial market. And a decrease in installation projects as compared to the prior year period along with an unfavorable impact of exchange rate fluctuations for our Marine Services segment. Turning to the next page on Slide 12, net revenue for the third quarter of 2015 decreased $3.5 million or 1% when compared to the seasonally high second quarter of $281 million. The declines were driven by the same factors described above in manufacturing in the Marine services segment and were largely offset by the continued improvements in our Telecommunications segment. Moving on to Slide 13, income from operations for the third quarter was $2.4 million compared to $3.3 million during the second quarter of 2015. The decrease in operating profit was largely the result of an increase in acquisition cost as we look to close the insurance transaction in the fourth quarter along with lease termination costs in our Telecommunications segment as they continue to consolidate operations into low-cost countries. This was offset in part by cost savings in our Pacific region and favorable mix in higher margin projects in our manufacturing segment. With that, I’ll turn the call back to Phil for closing remarks.

Thanks Mike. Again, some of the things that I want to just kind of close out the call on is, goals. What do we want to do, what do we want to be and what’s important to us. I’m very happy and very pleased with our platform right now. We’ve got essentially four platforms that we that are all EBITDA positive that we believe will continue to provide value. We’re clearly going to look at and be acquisitive on these various areas. And we’re also going to look at other platforms, we’re very keen on the Ag space, we’re very zeroed in on that. But the important thing for us going forward is now that we have our platform set let’s focus on accretive cash flowing acquisitions. You’ll see more of a focus on possibly larger transactions we do and we continue to see or we continue to feel good about some of the smaller investments we’ve made. But as everybody knows, they take a lot of, just as much time on some of the smaller things as some of the larger things. So, as we move forward you will see us less focused on smaller start-ups and quite frankly I find it hard to believe we’re going to focus on a lot more start-ups. What I want to do and what I want to focus on is the larger transactions, get back to our bread and butter. Focus on some of the bigger accretive deals that are coming across our plate as we, as this market disruption continues. Cost controls, very important but I think as I walked you through those numbers, you’ll see that our real corporate overhead at HC2 is still pretty low. And I think that’s very good news, we saw a little bit of a…

[Operator Instructions]. Our first question comes from the line of Bradd Kern with Armored Wolf. Your line is open.

Hi guys, thanks for the call. Good quarter. How are you thinking of the capital vision of the company and the debt capacity, just give an ongoing progress at the operating level?

Well, we always want to think about keeping our debt as obviously as manageable as possible. We have some pretty tight covenants which is I don’t want to say limiting our flexibility but we don’t have a lot of flexibility on the debt side. But I think in terms of taking a step back, we want to continue to push to lower our cost of capital, lower our debt. And I don’t want to say de-lever or balance sheet but we will continue to look opportunistically for acquisitions that will lower our total indebtedness to equity. There are situations out there that we can, we feel like we can capitalize on without a lot of cash. We have zeroed in on a number of these. But there is a delicate balance. And the covenants in profit and debt are, don’t give us a lot of flexibility but give us enough to do some pretty interesting things. So, I don’t know if that answers your question but I think it’s important for us to get our cost to capital down and continue to expand our platform. And as we did at HRG, focused on getting dividends out, when I was first there and started building that Spectrum brands were just coming out of bankruptcy and fidelity and guarantee was distressed. So there were no dividends coming out. So, that’s a very important thing for us to be able to generate and focus on companies where there is, dividends. And I think we’ve established our ability to do that and with our dividend that we expect in the fourth quarter will get us to mid-20s in for first full year, which I think is pretty darn good.

Okay. Thanks for that.

Yes.

Thank you. [Operator Instructions]. And I’m showing no further questions at this time. I’d like to turn the call back to management for further remarks.

Okay. Listen everybody thanks again for taking the time. We’re very pleased with this quarter. I hope we’ve explained it in detail as you would have liked. If not, clearly we’re here to answers questions going forward. Communication is obviously very important, both communication on the numbers as well as communication about our strategy. And hopefully we’ve been very clear with how we’re going to run this business going forward. So, with that, thanks again and thank you operator. And everybody have a good day.

Ladies and gentlemen, thank you for your participating in today’s conference. This does conclude the program. And you may all disconnect. Everyone, have a great day.