Good afternoon and welcome to INNOVATE Corp's Fourth Quarter and Full Year 2024 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 call over to Neel Sikka with Investor Relations. Please go ahead, Neel.

Good afternoon. Thank you for being with us to review INNOVATE's fourth quarter and full year 2024 earnings results. We are joined today by Paul Voigt, INNOVATE's Interim CEO; and Mike Sena, INNOVATE's CFO. 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 provision 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 are 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 for greater transparency in the review of our financial and operational performance. At this point, it's my pleasure to turn things over to Paul Voigt.

Good afternoon. We are pleased to report our fourth quarter and full year 2024 financial results and we'll provide you an update on key milestones reach that showcase the progress across each business segment. INNOVATE delivered consolidated revenue of $236.6 million and adjusted EBITDA of $15 million in the fourth quarter of 2024. For the full year 2024, INNOVATE delivered consolidated revenues of $1.1 billion and adjusted EBITDA of $71.3 million. Our main objective for 2025 is to address our capital structure and the near-term maturities of our debt obligations. We're making progress on our strategic objectives and our businesses continue to hit important milestones. We continue to believe that we have valuable assets that appreciate in value each day. Our focus is to leverage one or more of these assets prior to reaching the debt maturities in order to achieve sustainable capital structure that allows us to realize the full value of the remaining business. As we turn our attention to our operating segments, starting with Life Sciences, MediBeacon is thrilled to have received FDA approval for its transdermal GFR systems to assess kidney function. As many of you know, this has been something the team has been working towards for quite some time and we are very excited to have achieved this milestone. The FDA's approval of the TGFR indicates that MediBeacon's unique system offers an effective solution for evaluating kidney functions in patients with normal or impaired renal function. The potential applications for TGFR are numerous and MediBeacon looks forward to exploring them with clinicians, both in the hospital and outpatient settings. Additionally, in February, the National Medical Products Administration in China also approved the MediBeacon TGFR monitor and TGFR sensor for the assessment of kidney functions in patients with normal or impaired renal functions. With FDA…

Thanks, Paul. Consolidated total revenue for the fourth quarter of 2024 was $236.6 million, a decrease of 34.5% compared to $361 million in the prior year period. The decrease is primarily driven by our Infrastructure segment which was partially offset by increases at our Life Sciences and Spectrum segments. Net loss attributable to common stockholders and participating preferred stockholders for the fourth quarter of 2024 was $16.9 million or $1.29 per fully diluted share compared to a net loss of $9.6 million or $1.22 per fully diluted share in the prior year period which has been retroactively adjusted to reflect the 1 for 10 [ph] reverse stock split effected on August 8, 2024. Total adjusted EBITDA was $15 million for the fourth quarter of 2024, a decrease from $21.5 million in the prior year period. The decrease is driven by the Infrastructure segment which is partially offset by our Life Sciences spectrum and non-operating corporate segments. At Infrastructure, revenue decreased 36.2% to $225.7 million from $353.8 million in the prior year quarter. The decrease was primarily driven by the timing and size of projects at Banker's Steel and DBMG's commercial structural steel fabrication and erection business. Both of which had increased activity in the comparable period on certain large commercial construction projects that have since been completed. This was partially offset by an increase at the industrial, maintenance and repair business as a result of an increase in project work. Infrastructure adjusted EBITDA for the fourth quarter of 2024 decreased to $17.4 million from $30 million in the prior year period. The decrease was driven by lower revenue and gross margins at Banker's Steel and lower revenue, partially offset by an increase in gross margins at DBMG's commercial, structural steel fabrication and erection business, due to the timing of projects…

[Operator Instructions] And our first question is from the line of Brian Charles with R.W. Pressprich.

I got a couple. First off, congratulations on the FDA approval of MediBeacon. And you did mention you've engaged Jefferies to help you explore options on maybe monetizing part or all of that business. Can I ask like how deep and do discussions are -- is Jefferies right now? Is this a relatively recent development? Or is this something they've been retain since they right after the FDA approval. Sorry, can you all hear me?

Brian, thanks for the question. So back in the end of '23, we had indicated that we had hired Bankers. We've been working on this process for some time, FDA approval was pretty critical and we're happy to finally receive the long-awaited FDA approval. It's been a lot of time and effort since our original investment back in 2015. And we're in discussions with medical device and pharmaceutical companies at this point.

Okay, fair enough. I imagine you can't go into too much detail but just throwing it out there. I know when Huadong injected equity, it was at a $400 million valuation. Is that fair to say that's still the context of discussions you're holding with people?

Well, as you know, that deal was done back in 2019 as a milestone. So that was a commitment that was made back in 2019. And so what I'd say is we're going to have to see how the process pans out but we're happy that we had that arrangement in the first place but it was some valuation point that was set back in 2019.

Yes, fair enough. And just one follow-up in general, I guess, across DBM Global. To what extent -- like should I think about the tariffs or potential kind of clouding is coming from uncertainty around tariffs. A) Would that impact any discussions or delay any kind of resolution about MediBeacon because I'm not sure exactly to the extent to which potential tariffs could impact MediBeacon business model or at least uncertainty around tariffs.

We're -- it's still, I think the initial rollout in the approval today is in the U.S. And so I know we're working on a subsequent stream in China. But we don't think that, that -- I guess at this time, we don't think that there's that big of an impact from it.

Yes, fair enough. And then --

It's a little early. It's just early in the process. That's all for...

I really understand. I guess I just had to ask -- but secondly, any thoughts on to what extent the -- this uncertainty might impact the adjusted backlog at DBM Global. Would it impact margins or could it impact volume?

Well, what I'd say is that typically, when DBM goes out and bids their projects, they are locking in prices with the mills. And so we tend to not take risk on the steel prices and that ends up getting passed along. So I don't see it as an issue from a backlog perspective at this point. And right now, Rustin and the team are kind of saying, they don't see a big impact but they're continuing to assess it.

[Operator Instructions] Thank you. At this time, I'll turn the floor back to management for further remarks.

Yes, I want to thank everybody for their time, effort and support. Hopefully, one of these asset potential sales will hit here very soon. We look forward to updating you the minute that happens. Appreciate again, all your support. Thank you.

This will conclude today's conference. You may disconnect your lines at this time. Thank you for your participation.