Good afternoon and welcome to the HC2 Holdings First Quarter 2016 Earnings Call. All participants will be in listen-only mode. After today’s presentation, there will be an opportunity to ask questions. Please note this call is being recorded. I would now like to turn the conference over to Mr. Andrew Backman, HC2’s Managing Director of Investor Relations and Public Relations. Please go ahead.

Thank you, Jodi, and good afternoon everyone. Thank you for joining us to review HC2’s first quarter 2016 earnings. With me today are Philip Falcone, Chairman, President and CEO of HC2; Mike Sena, our Chief Financial Officer; and Keith Hladek, our Chief Operating Officer. This call is being webcast on our website at hc2.com in the Investor Relations section. We also invite you to follow along our webcast presentation, which can be accessed on the HC2 website again in the Investor Relations section. A replay of this call will be available, one hour after the call. The dial-in for the replay is 1855-859-2056 with a confirmation code of 5431300. Before I turn the call over to Phil, I would like to remind everyone that certain statements and assumption in this earnings call, 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. These forward-looking statements are subject to certain assumptions and risk factors that could cause HC2’s actual results to differ materially from these forward-looking statements. The risk factors that could cause these differences are more fully disclosed in our 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. HC2 disclaims any intent or obligation to update or revise these forward-looking statements except as expressly required by law. During the call, management will provide certain information that will constitute non-GAAP financial measures under the SEC rules such as pro 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, which is available in the company’s website. And finally as a reminder, this call cannot be taped or otherwise duplicated without the company’s prior consent. Now, I would like to turn the call over HC2’s Chairman, CEO and President, Philip Falcone. Philip?

Thank you, Andy, and good afternoon everybody and thank you for joining us today. On the agenda today, I will start with a brief recap of the results for the quarter, provide a few operational highlights from our primary operating subs and then we can finish up with a Q&A. So if I could get everybody’s attention and turn to Slide 4, which is the discussion on first quarter highlights and recent developments. For the first quarter, total net revenues were $332 million, an increase of 64% when compared to the first quarter of 2015. The increase was driven primarily by our growth in our telecom business, which was about $103 million higher as well as the contribution from our newly acquired insurance business, which was $29 million higher. As you will see throughout the presentation, we broken our core subsidiaries into two operating – two main groups and that’s the core operating subs, which is comprised of our manufacturing, marine services, utilities and telecom, and then of course our core financial services sub, which is our insurance segment. We gone down the path of separating continental insurance from our core operating sub as insurance businesses are not typically measured on the same metrics as the operating companies. As example, they are not typically measured on an EBITDA basis, but on an adjusted operating income and even more importantly stat capital. Adjusted EBITDA for the core operating subs totaled $12.7 million in the first quarter versus $14.1 million in the prior year quarter. The core operating subs results benefited from the EBITDA growth in the manufacturing segment due largely to margin expansion, growth and scale and customer relationships in the telecommunications segment and an increase in the volume of the gallon – gasoline gallon equivalent delivered in the utilities segment.…

Yes. Thank you. We will now begin the question-and-answer session. [Operator Instructions] Your first question comes from the line of Kurt Hoffman from Imperial Capital. Your line is open.

Hi, Philip. Nice quarter.

Thanks.

It was an encouraging year to come to around Global Marine still meeting budget for the year despite that write down. But are you able to share the revenue and EBITDA in the quarter derived from Global Marine’s maintenance contracts?

Mike, do you have that write-down on where are we disclosing that?

It’s something we previously haven’t disclosed, but generally revenues are well between 50% and 60% on maintenance side, the opposite being installation.

Okay. And you mentioned the one contract extension that had been previously disclosed. How many material maintenance contracts does Global Marine currently have? And where do they stand in terms of expiration, their negotiations to extend those?

The way we’re looking at kind of material contracts are, right now, there are three material contracts inclusive of the NAZ contract. The exact timing on termination of those contracts, we will probably have to dig up, I don’t have those off hand. Let me see if Mike or Keith are…

Yes, Kurt, this is Keith. One of them rolls off at the end of this year and the second one rolls up at the end of next year.

And what’s the historical renewal rate around those types of contracts?

Pretty, very strong. I would say it’s a 100%, but we have no reason to believe that they will not be resigned, but it’s typically very strong and clearly north of 50%, 60%, 70%.

Okay. My understanding is the counterparties and those aren’t just one company they’re kind of consortiums with many different counterparties. So hopefully that makes it – something it’s a little more sticky, is that the right way to think about it?

Correct, yes, that is the exact way to look at that.

All right, in terms of liquidity at the holding company, the press release references $40 million, $41 million of cash there. How do you think about liquidity at the hold co and ability to comply with bond covenants pertaining to cash balances?

We have no reason to believe that we are – no reason to believe that we will have any issue with that covenant. It’s not something I’m losing sleep about.

Okay.

Very confident. And I think you – as part and parcels of that you got to think about the cash at the subsidiaries. Global ended up the quarter with like $24 million, $25 million of cash and I think Schuff off hand at $20 million of cash. So, we are obviously well aware of that and it’s managed daily here, but it’s not something we’re concerned about.

Okay, all right, one more if you don’t mind. Hearing you and talking to your team definitely can sense the excitement around these life sciences businesses, the NASCAR racing game, NerVve. When do you think we might see a monetization of one of these at a level that kind of wakes us all up to the value of this portfolio?

I got to tell you I think that in focusing on the monetization or the valuation change on one of these, keep in mind we have four investments, maybe five investments in Pansend right now of which total $25 million thereabouts and pretty diverse across those four or five different companies. I would suspect that you will see something in 2016, where there will be a valuation change event. One, in particular, we are probably ahead of the curve and ahead of where we expected to be. In fact I would say there’s possibilities of two, at lease two were ahead of the curve. I think that to be conservative. I would be shocked if we didn’t see something develop on that at least one of them. And it could be size two.

This year?

This year.

That would be terrific. Okay, good, good. Well keep up the great work and thanks for everything [indiscernible].

Thanks. I think it’s important to understand on those Pansend business – the Pansend businesses that we will – how I’m looking at that is developments, where you will see a real valuation change. I don’t think we are looking at selling any of them, but based on what we see internally and what we see happening internally, I’m cautiously optimistic if I may say that, you should see something – hopefully you see something pretty exciting with one if not two of those.

Okay.

Okay.

Thanks.

Thanks, Kurt.

[Operator Instructions] And Mr. Backman, we have no further questions. So I’ll turn the call back over to Mr. Falcone for closing remarks.

Okay, well, thank you again everybody for participating in today’s call. I hope we shed some light on what we’re doing here and what’s happening here. We’ve been extremely busy. We are both building up the team and doing a number of other things to hopefully make it easier for our investor base going forward, but we’re really excited about what we’ve done operationally, where we are, and the prospects that we have on the table. With that, I will hand it over to Andy, if he has any last minute comments, he can mention them. And again, thanks a bunch for participating today.

Well, thank you Phil and thank you Mike and Keith as well. And thank you all for joining us this afternoon. As always our management team is available to speak with you. Should you have any follow-up questions, please do not hesitate to contact me here in New York directly at 212-339-5836. Jodi, would you please go ahead and provide the conference call replay instructions once again. Have a great day.

Thank you.