Good afternoon. And welcome to INNOVATE Corp.’s Fourth Quarter and Full Year 2022 Earnings Conference Call. All participants will be in a 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 Rozmus with Investor Relations. Thank you. Please go ahead.

Good afternoon. Thank you for being with us to review INNOVATE’s fourth quarter 2022 earnings results. We’re 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. Risk factors that could cause these differences are more fully disclosed 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 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 these meas6ures provide useful supplemental data that, while not a substitute for GAAP measures, allow for greater transparency in the review of our financial and operational performance. At this point, it’s my pleasure to turn things over to Avi Glazer.

Good afternoon. INNOVATE finished the year on a strong note and it’s heading into 2023 with significant momentum across all of our business segments. That INNOVATE the chief of transformation was announced over two years ago, we have built upon our success in each quarter and achieved record financial results in 2022. Our sharpened focus on INNOVATE’s best-in-class business segments has allowed the company to deliver back-to-back years of record growth. Infrastructure achieved $1.6 billion in revenue for 2022, growing 37% over 2021 levels. That business continues to benefit from the strength in commercial, industrial and construction markets, and has a runway for sustained growth supported by its backlog of $1.8 billion. In Life Sciences, we are encouraged by the positive indicators we are seeing in the Pansend portfolio remain excited about the upside in that business and the direction in which both R2 and MediBeacon are headed. R2’s sequentially grew its topline every quarter in 2022 and MediBeacon recently completed enrollment of both its U.S. and China pivotal studies and is targeting its final FDA submission in the first half of this year. Broadcasting achieved positive adjusted EBITDA for all four quarters in 2022 and successfully completed its initial to a Spectrum demonstration in our Fort Wayne market. Towards the end of the year, we made the strategic decision to shutdown Azteca, which will drive enhanced profitability in the segment going forward. We are pleased with the results in 2022 and plan to build on this progress as we see future growth in each of our three business segments. We remain focused on maximizing value in each of our best-in-class assets and remain excited about our future prospects. With that I’m pleased to turn the call over to Wayne Barr.

Thanks, Avi, and thank you all for joining us today. 2022 was another strong year for INNOVATE as we continue to execute our strategy. For the full year 2022, we achieved revenue growth of 36% and adjusted EBITDA growth of 55%. From a quarterly perspective, our results are trending in the right direction as well. In fact, we delivered year-over-year growth on both our topline and adjusted EBITDA in each quarter of 2022. Specifically, for the fourth quarter 2022, we delivered consolidated revenues of $409.3 million and adjusted EBITDA $28.1 million. We believe that this trend of growing quarterly adjusted EBITDA on a year-over-year basis throughout 2022 is a testament to our strong execution and focus on operational initiatives that deliver growth and profitability. I will now share some fourth quarter highlights for each of our operating segments. DBM Global continues to deliver strong financial results. Revenue and adjusted EBITDA grew year-over-year 3.6% and 13.5%, respectively in the fourth quarter of 2022. Adjusted EBITDA margin for the fourth quarter was 8.2% and expansion of 70 basis points year-over-year and 150 basis points sequentially. We saw significant margin improvement in the fourth quarter driven by larger projects and the roll off of pandemic-related jobs. While we continue to see a gradual rise in margins over the pandemic lows and are pleased with these quarters’ margins, it is worth noting that we expect quarterly margins to fluctuate throughout 2023 due to the timing of jobs. DBM continues to see robust opportunities in the construction, commercial and industrial markets and we are evaluating measures that we believe will put DBM in a favorable position to take advantage of the strong market. The pipeline at DBM continues to be strong and our backlog at year end of $1.8 billion continues to provide visibility into…

Thanks, Wayne. Consolidated total revenue for the fourth quarter of 2022 was $409.3 million, an increase of 3.7%, compared to $394.8 million in the prior year period. The increase was driven by our Infrastructure segment, led by Banker Steel and an increase in the Infrastructure market demand. Net loss attributable to common and participating preferred stockholders for the fourth quarter of 2022 was $7 million or $0.09 per share, compared to a net loss of $5.2 million or $0.07 per share in the prior year period. Total adjusted EBITDA, which excludes discontinued operations was $28.1 million in the fourth quarter of 2022, an increase from an adjusted EBITDA of $22.1 million in the prior year period. The increase was primarily driven by the Infrastructure segment, Life Sciences, Spectrum and non-operating corporate segments. This was partially offset by a decrease in equity method income from our investment in HMN, which as previously discussed, the sales of the remaining 19% closed in March of 2023. At Infrastructure, revenue increased 3.6% to $397.3 million from $383.4 million in the prior year quarter. As discussed earlier, this increase is driven by Banker Steel as they are in full swing into work at 270 Park. We also saw an increase in DBM’s commercial structural steel fabrication and erection business as they work through some of the larger wins from 2021 including IBEC Clippers’ arena and larger wins from 2022, including Stellantis, which is a lithium-ion battery production plant in Kokomo, Indiana. The increase was offset in part by the industrial maintenance and repair, construction, modeling and detailed businesses. Infrastructure adjusted EBITDA for the fourth quarter of 2022 increased to $32.7 million from $28.8 million in the prior year period. The increase was largely driven by improvement in margin at the commercial structural steel fabrication and…

Thank you. [Operator Instructions] Our first question is from Brian Charles with R.W. Pressprich. Please proceed.

Hi. Good afternoon. Thanks for taking my question and congratulations on the quarter. I’ve got a couple of questions and I can get back in the queue. But the first one, I guess, I just want to understand, as of December 31st, you seized doing business with Azteca America and as you are getting out of the business you were replacing some of that business by signing other customers and networks and such. To what extent have you kind of replaced all the business that is left with Azteca? Have you signed that up almost completely or just like what’s the progress on that?

Yeah. We’ve substantially completed putting additional content on channels that were previously dedicated to the Azteca programming. Those were typically, dot one channels in large markets and so it was considered to be very favorable real estate for content providers and programmers and so we were able to quickly replace that content.

The one thing to point out is that, while the revenue is fairly equal when you’re doing that. It’s also very profitable revenues that were at. So Azteca had a big cost structure, as you can imagine, because there are network flow that goes away and you’re adding revenues on those channels that will in essence drop to the bottomline.

Okay. All right. Fair enough. Thanks. And then, secondly, your cash balance really did bounce at the end of the year. I guess most of it at the or the most of the improvement is at the subsidiary level. Where about is that of the $80.4 million, I guess, a total cash and probably one of the corporate versus?

Yeah. And that would be really DBM and you kind of see that swinging, right? You saw last year it swing really, collections were good, working capital dipped, but it moves around. And I think that that will just depend on where they’re ramping up, finishing jobs, things like that. And so day-to-day you’re trying to, working capital will move pretty significantly and they had some favorable collections at the end of the year that resulted in sort of that increase in cash. But you see it moves around quite a bit in -- throughout the year.

Okay. Good enough. Okay. Thanks. That’s it. I will get back in queue.

Thank you.

Thank you.

[Operator Instructions] With no further questions at this time, I would like to hand the conference back over to Wayne Barr for closing comments.

Thank you. This concludes our call this afternoon. Thank you all for joining us. We hope you have a nice evening. Good night.

Thank you for your participation. You may disconnect your lines at this time.