ACCESS Newswire
18 May 2020, 18:01 GMT+10
Company Grows Revenue to $40.2 Million in 2019, Engages BDO USA LLP as Auditor in Advance of SEC Registration and Uplisting Initiatives
CLEVELAND, OH / ACCESSWIRE / May 18, 2020 / Innovest Global, Inc. (OTC PINK:IVST), a diversified industrials company, today announced results for the fiscal year ended December 31, 2019.
Key Fourth Quarter 2019 and Subsequent Operational Highlights
Management Commentary
Dan Martin, Chairman and Chief Executive Officer, stated 'Innovest now has stable, growing operations in personal protective equipment (PPE), call center services which are HIPAA compliant and energy efficiency and cost saving solutions. It also has the potential to re-establish the Wholesale Purchasing segment revenues with a more profitable model than utilized in 2019 and to secure one or more of the several multi-million dollar contracts out for bid in its wall systems business where customer decisions were temporarily delayed due to COVID-19 disruptions. The spinout of our biotech holding, StemVax, will serve to enhance the Innovest balance sheet significantly in the second half of 2020.
'2019 marked the first full year of all of the acquired businesses performing under the Innovest umbrella, and we are more enthusiastic than ever that the proper foundation has been set for the creation of a major diversified industrials platform company. The path from a four person company that generated less than $50 thousand dollars in revenues in 2017, to a nearly 80 person company and over $40 million in revenues in 2019 was the product of achieving the following challenging requirements of starting a company like Innovest:
'Doing all of the above in less than two years was not the measure of success, it was the entry point for being in business. Now that so much of the formative work is done, we plan to improve, grow, and serve our mission: ‘Extraordinary customer experiences from exceptional people, novel solutions, and streamlined operations that prioritize relationships and integrate cutting edge technologies.' We cannot thank our shareholders enough for the opportunity to accomplish what has been done so far. In the next season, we will scale and advance these efforts to produce significant value for all of our stakeholders.'
Full Year 2019 Financial Results (unaudited)
About Innovest Global, Inc.
Innovest Global, Inc. (OTC PINK:IVST) is a diversified industrials company applying technology and innovation to provide value-added solutions across multiple business markets. Innovest Global builds long-term shareholder value by acquiring established industrial businesses on favorable terms, realizing synergies and achieving organic growth through investments in innovative technology and business systems. For more information, please click here.
Use of Certain Non-GAAP and Adjusted Financial Measures
Innovest reports its financial results in accordance with GAAP. However, Innovest's management believes that certain non-GAAP financial measures help facilitate comparisons of Company operating performance across periods. To supplement our unaudited financial results prepared in accordance with GAAP, we have prepared certain non-GAAP measures that include or exclude special items. This release includes EBITDA, Adjusted EBITDA, Segment Contribution Margin and Adjusted Segment Contribution Margin which are non-GAAP financial measures. Innovest defines EBITDA as net income from continuing operations before interest expense, income tax expense, depreciation and amortization expenses and other non-recurring items. Adjusted EBITDA is defined as EBITDA before non-cash stock-based compensation, goodwill impairments and other income or expense. Segment contribution margin is defined as segment revenues less segment cost of sales, excluding depreciation and amortization expenses, selling, general and administrative costs and Corporate overhead costs. Segment contribution margin is not a measure of our financial performance under GAAP and should not be considered as an alternative or superior to measures derived in accordance with GAAP. Adjusted segment contribution margin further excludes the impact from non-recurring items for year over year comparison purposes.
These non-GAAP measures are not meant to be considered in isolation or as a substitute for financial information presented in accordance with GAAP and should be viewed as a supplemental and in addition to our financial information presented in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures. In addition, other companies may report similarly titled measures, but calculate them differently, which reduces their usefulness as a comparative measure. Management utilizes these non-GAAP metrics in evaluating and making operational decisions regarding our business.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts included in this press release are forward-looking statements. These statements relate to future events or to the Company's future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Investors should not place any undue reliance on forward-looking statements since they involve known and unknown uncertainties and other factors which are, in some cases, beyond the Company's control which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects the Company's current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to operations, results of operations, growth strategy and liquidity. Such risks, uncertainties and other factors, which could impact the Company and the forward-looking statements contained herein are included in the Company's filings with the OTC Markets. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
Investor Contact:
Indrani Egleston
Executive Vice President, Chief Financial Officer
Innovest Global, Inc.
440-644-1027
[email protected]
ir.innovestglobal.com
Chris Tyson
Managing Director
MZ Group - MZ North America
949-491-8235
[email protected]
www.mzgroup.us
Innovest Global, Inc.
Consolidated Balance Sheet (unaudited)
December 31, 2019 and 2018
Innovest Global, Inc.
Consolidated Statement of Operations (unaudited)
Years Ended December 31, 2019 and 2018
Innovest Global, Inc.
Consolidated Statement of Cash Flows (unaudited)
Years Ended December 31, 2019 and 2018
Innovest Global, Inc.
Segment Contribution Margin (unaudited)
Years Ended December 31, 2019 and 2018
* - Segment contribution margin is defined as segment revenues less segment cost of sales, excluding depreciation and amortization expenses, selling, general and administrative costs and Corporate overhead costs. Adjusted segment contribution margin further excludes the impact from non-reoccurring items for year over year comparison purposes.
(1) Segment contribution margin for the Commercial Solutions segment in 2019 includes a contract loss of $11.2 million as a result of an inherited legacy contract for Midwest. As a result of the negative gross profit on the contract, future anticipated losses were accelerated into the full year 2019 results and netted against year to date reported segment revenues. Excluding this one time charge, contribution margin for the Commercial Segment would have been $2.1 million and the Total Company contribution margin would have been $2.4 million.
Innovest Global, Inc.
Reconciliation of Net Income to EBITDA and Adjusted EBITDA (unaudited)
Years Ended December 31, 2019 and 2018
Adjusted EBITDA is defined as EBITDA before non-cash stock-based compensation, asset impairments and other income or expense.
(1) Represents non-cash expense for stock-based awards issued to our employees and outside service providers.
(2) Represents the loss on a one time contract inherited with the acquisition of Midwest Curtainwalls. As a result of the negative gross profit on the contract, future anticipated losses were accelerated into the full year 2019 results.
(3) Represents the expense associated with the impairment of Goodwill for the Midwest Curtainwall business as a result of the losses incurred on the legacy contract inherited in the acquisition.
(4) Represents the non-cash charges for changes or establishment of stock guarantee valuations associated with acquisitions.
(5) Represents the financing cost associated with short term working capital funding.
(6) Costs and expenses related to the integration of acquired companies including legal, accounting, and advisory services which are reported under selling, general and administrative expenses.
(7) Represents the amount of operating lease expense related to Operating right-of-use assets, net on the Consolidated Balance Sheet, as a result of the adoption of ASC 842 and reported under selling, general and administrative expenses.
SOURCE: Innovest Global Inc.
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