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 November 2, 2015 - 7:03 AM EST
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HC2 Holdings Reports Third Quarter 2015 Results

Net Revenue of $277.5 Million for the Third Quarter 2015 and $760.3 Million for the 9 Months Ended September 30, 2015

Adjusted EBITDA of $24.7 Million From Our Primary Operating Subsidiaries

NEW YORK, Nov. 02, 2015 (GLOBE NEWSWIRE) -- HC2 Holdings, Inc. (“HC2”) (NYSE MKT:HCHC), a diversified holding company that focuses on acquiring, investing in and operating businesses that it considers to be under or fairly valued and growing its acquired businesses, today announced its consolidated results for the third quarter of fiscal 2015, which ended on September 30, 2015.

“We are very pleased with our third quarter execution, especially the continued strength of Schuff and Global Marine, two of HC2's key operating companies,” said Philip Falcone, HC2’s Chairman, President and Chief Executive Officer. “We are encouraged by the 16% increase in Schuff’s backlog of projects during the quarter and the company's ongoing execution of building a solid revenue pipeline. In Marine Services, our outlook remains positive as Global Marine, a company that has been in business for more than 120 years, continues to perform as expected as their maintenance sector remains robust and continues to underpin results. We are also very excited about the progress at our Telecommunications segment which is now Adjusted EBITDA positive as a result of the past year’s restructuring of the PTGi ICS business. Looking forward, we will continue to pursue highly attractive, cash flow positive businesses and will remain committed to building long-term value in these businesses, which we believe will offer a significant value added proposition to our shareholders.”

Third Quarter 2015 Financial Highlights:

Net revenue: HC2 recorded consolidated total net revenues of $277.5 million for the third quarter of 2015, an increase of $98.0 million, or 54.6%, as compared to the third quarter of 2014 as reported and up $53.5 million, or 23.9%, from the third quarter of 2014 on a pro-forma basis. Net revenue for the third quarter of 2015 decreased $3.5 million, or 1%, when compared to the seasonally high second quarter of $281.0 million, primarily driven by decreases in our Manufacturing segment due to a reduction in industrial projects in the Gulf Coast region and our Marine Services segment due to lower installation projects during the quarter. The decrease was largely offset by continued improvement in our Telecom segment due to continued expansion into emerging markets.

HC2 recorded consolidated total net revenue of $760.3 million for the nine months ended September 30, 2015, an increase of $440.9 million, or 138%, as compared to the same period last year as reported and an increase of $130.2 million, or 20.7%, for the same period of 2014 on a pro-forma basis.

Operating Income: 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 costs as we look to close the insurance transaction in the fourth quarter along with lease termination costs in our Telecom segment as they continue to consolidate operations to low cost countries offset in part by cost savings in our Pacific region and favorable mix in higher margin projects in our Manufacturing segment.

Adjusted EBITDA: HC2 reported total Adjusted EBITDA of $14.1 million and $39.4 million for the three and nine month period ended September 30, 2015, respectively, up from $8.4 million and $9.0 million from the three and nine month periods ended September 30, 2014, respectively, as reported.

Adjusted EBITDA for HC2’s primary operating subsidiaries, Schuff and Global Marine, was a combined $24.7 million for the third quarter of 2015 and $69.8 million for the first nine months of the year. Schuff continued to grow its Adjusted EBITDA during the quarter to $14.4 million as the company continued to profit from improved margins in the Pacific division. In the Telecommunications segment, PTGi ICS enjoyed positive Adjusted EBITDA for the second consecutive quarter.

Adjusted EBITDA growth during the first nine months of the year was largely the result of our ability to subcontract work at lower costs in our Manufacturing segment along with an increased level of installation work in our Marine Services segment. This was offset, in part by, early stage investments and increases in deal related diligence expenses in Corporate and Other segments.

Balance sheet: As of September 30, 2015, HC2 had consolidated cash, cash equivalents and short-term investments of $84.7 million.

Additional Third Quarter Highlights and Recent Developments:

  • HC2 has received $16.2 million in total dividends year-to-date from its primary subsidiaries, including $8.2 million from Schuff and $8.0 million from Global Marine.

  • Schuff’s backlog was $381.6 million as of September 30, 2015, compared to $329.3 million as of June 30, 2015. We expect to continue to add backlog during the fourth quarter. Notable ongoing projects include the Wilshire Grand Center in Los Angeles, the Sacramento Kings Arena, and the new Apple headquarters in Cupertino, CA.

  • Global Marine completed a major fiber optic project in the Gulf of Guinea and had its first installation of the R2 repeater following successful sea trials. In addition, Huawei Marine, a Global Marine joint venture company, announced it will construct the Cameroon-Brazil Cable System, connecting Africa to Latin America.

  • HC2’s acquisition of long-term care and life insurance businesses, United Teacher Associates Insurance Company and Continental General Insurance Company, is expected to close during the fourth quarter of 2015, subject to receipt of required governmental approvals.

  • American Natural Gas (“ANG”) completed a new compressed natural gas (“CNG”) facility at the Tops Friendly Markets distribution center in Lancaster, New York. ANG is also building CNG stations near Rochester, New York and in Georgetown, Kentucky where Bestway Express, a truckload carrier, will be the anchor tenant.

  • Pansend Life Sciences, LLC has entered into an agreement to provide $22.4 million in staged financing with MediBeacon, Inc., maker of a proprietary noninvasive real-time monitoring system for kidney function.

  • On October 9, 2015, HC2 announced that one of its shareholders, HGI Funding, LLC (“HGI”), a subsidiary of HRG Group, Inc., entered into a definitive stock purchase agreement for the sale of 4,678,395 shares of common stock at $7.50 per share. HC2 did not receive any of the proceeds from the sale. The purchasers included Philip Falcone, HC2’s Chairman, President and Chief Executive Officer, who purchased 540,000 shares and Paul Voigt, HC2’s Senior Managing Director, who purchased 100,000 shares.

Non-GAAP Financial Measures and Other Information

Pro forma net revenue gives effect to revenues from our 2014 acquisitions of Schuff and Global Marine as if they had occurred on January 1, 2014.

Management believes that presenting pro forma net revenue is important to understanding HC2’s financial performance, providing better analysis of trends in our underlying businesses as it allows for comparability to prior period results.

The calculation of Adjusted EBITDA, as defined by us, consists of Net income (loss) as adjusted for gain (loss) on sale or disposal of assets; lease termination costs; interest expense; amortization of debt discount; other income (expense), net; foreign currency transaction gain (loss); income tax (benefit) expense; loss from discontinued operations; noncontrolling interest; share-based compensation expense; acquisition related costs, other costs and depreciation and amortization expense.

Management believes that Adjusted EBITDA is significant to gaining an understanding of HC2’s results as it is frequently used by the financial community to provide insight into an organization’s operating trends and facilitates comparisons between peer companies, since interest, taxes, depreciation, amortization and other adjustments can differ greatly between organizations as a result of differing capital structures and tax strategies. Adjusted EBITDA can also be a useful measure of a company’s ability to service debt. While management believes that non-US GAAP measurements are useful supplemental information, such adjusted results are not intended to replace HC2’s US GAAP financial results.

Conference Call

HC2 Holdings, Inc. will host a live conference call to discuss its results on Monday, November 2, 2015 at 10:00 a.m. Eastern Time. To join the event, participants may call 1.866.395.3893 (U.S. callers) or 1.678.509.7540 (international callers), using conference ID number 53945900. Alternatively, a live webcast of the conference call can be accessed by interested parties through the Investor Relations section of the HC2 Website,

Cautionary Statement Regarding Forward-Looking Statements

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: This release contains, and certain oral statements made by our representatives from time to time may contain, forward-looking statements. Generally, forward-looking statements include information describing actions, events, results, strategies and expectations and are generally identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “plans,” “seeks,” “estimates,” “projects,” “may,” “will,” “could,” “might,” or “continues” or similar expressions. These statements are based on the beliefs and assumptions of HC2's management and the management of HC2's subsidiaries. The Company believes these judgments are reasonable, but you should understand that these statements are not guarantees of performance or results, and the Company’s actual results could differ materially from those expressed in the forward-looking statements due to a variety of important factors, both positive and negative, that may be revised or supplemented in subsequent reports on Forms 10-K, 10-Q and 8-K. Factors that could cause actual results, events and developments to differ include, without limitation, capital market conditions, the ability of HC2's subsidiaries to generate sufficient net income and cash flows to make upstream cash distributions, trading characteristics of the HC2 common stock, the ability of HC2 and its subsidiaries to identify any suitable future acquisition opportunities, our ability to realize efficiencies, cost savings, income and margin improvements, growth, economies of scale and other anticipated benefits of strategic transactions, integrating financial reporting of acquired or target businesses, completing pending and future acquisitions, including our pending acquisition of United Teacher Associates Insurance Company and Continental General Insurance Company, and dispositions, litigation and other contingent liabilities, changes in regulations, taxes and risks that may affect the performance of the operating subsidiaries of HC2. Additional information concerning these and other factors can be found in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

You should not place undue reliance on forward-looking statements. All forward-looking statements attributable to HC2 or persons acting on its behalf are expressly qualified in their entirety by the foregoing cautionary statements. All such statements speak only as of the date made, and HC2 undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

About HC2

HC2 Holdings, Inc. is a publicly traded (NYSE MKT:HCHC) diversified holding company, which seeks opportunities to acquire and grow businesses that can generate long-term sustainable free cash flow and attractive returns in order to maximize value for all stakeholders. HC2 has a diverse array of operating subsidiaries across six reportable segments, including Manufacturing, Marine Services, Utilities, Telecommunications, Life Sciences and Other. Currently, HC2’s largest operating subsidiaries are Schuff International, Inc., a leading structural steel fabricator and erector in the United States, and Global Marine Systems Limited, a leading provider of engineering and underwater services on submarine cables. Founded in 1994, HC2 is headquartered in Herndon, Virginia.

(in thousands, except per share amounts)
 Three Months Ended
September 30,
Nine Months Ended
September 30,
Services revenue$151,933 $41,267 $373,492 $126,731 
Sales revenue 125,534  138,166  386,765  192,642 
Net revenue 277,467  179,433  760,257  319,373 
Operating expenses:            
Cost of revenue - services 138,099  39,464  334,608  120,101 
Cost of revenue - sales 103,375  119,175  324,820  162,505 
Selling, general and administrative 27,830  20,246  77,359  40,482 
Depreciation and amortization 6,593  921  16,835  1,475 
Gain on sale or disposal of assets (1,957) (448) (986) (81)
Lease termination costs 1,124    1,124   
Total operating expenses 275,064  179,358  753,760  324,482 
Income (loss) from operations 2,403  75  6,497  (5,109)
Interest expense (10,343) (2,103) (28,992) (3,116)
Amortization of debt discount (40) (805) (216) (1,381)
Loss on early extinguishment or restructuring of debt   (6,947)   (6,947)
Other income (expense), net 1,216  (1,092) (3,528) 524 
Foreign currency transaction gain 1,099  170  2,150  573 
Loss from continuing operations before income (loss) from equity investees and income tax benefit (expense) (5,665) (10,702) (24,089) (15,456)
Income (loss) from equity investees 535  (288) (724) (288)
Income tax benefit (expense) 649  (4,515) 4,018  (6,470)
Loss from continuing operations (4,481) (15,505) (20,795) (22,214)
Loss from discontinued operations (24) (106) (44) (62)
Gain (loss) from sale of discontinued operations   663    (121)
Net loss (4,505) (14,948) (20,839) (22,397)
Less: Net income attributable to noncontrolling interest (65) (931) (8) (1,990)
Net loss attributable to HC2 Holdings, Inc. (4,570) (15,879) (20,847) (24,387)
Less: Preferred stock dividends and accretion 1,035  1,004  3,212  1,204 
Net loss attributable to common stock and participating preferred stockholders$(5,605)$(16,883)$(24,059)$(25,591)
Basic loss per common share:            
Loss from continuing operations attributable to HC2 Holdings, Inc.$(0.22)$(0.75)$(0.96)$(1.38)
Gain (loss) from sale of discontinued operations   0.03    (0.01)
Net loss attributable to HC2 Holdings, Inc.$(0.22)$(0.72)$(0.96)$(1.39)
Diluted loss per common share:            
Loss from continuing operations attributable to HC2 Holdings, Inc.$(0.22)$(0.75)$(0.96)$(1.38)
Gain (loss) from sale of discontinued operations   0.03    (0.01)
Net loss attributable to HC2 Holdings, Inc.$(0.22)$(0.72)$(0.96)$(1.39)
Weighted average common shares outstanding:            
Basic 25,592  23,372  25,093  18,348 
Diluted 25,592  23,372  25,093  18,348 

(in thousands, except share and per share amounts)
 September 30,
December 31,
Current assets:      
Cash and cash equivalents$81,066 $107,978 
Short-term investments 3,625  4,867 
Accounts receivable (net of allowance for doubtful accounts receivable of $1,576 and $2,760 at September 30, 2015 and December 31, 2014, respectively) 187,474  151,558 
Costs and recognized earnings in excess of billings on uncompleted contracts 37,266  28,098 
Deferred tax asset - current 1,701  1,701 
Inventories 14,408  14,975 
Prepaid expenses and other current assets 27,835  22,455 
Assets held for sale 6,349  3,865 
Total current assets 359,724  335,497 
Restricted cash 7,196  6,467 
Long-term investments 77,154  48,674 
Property, plant and equipment, net 221,842  239,851 
Goodwill 30,665  27,990 
Other intangible assets, net 26,674  31,144 
Deferred tax asset - long-term 23,571  15,811 
Other assets 18,201  18,614 
Total assets$765,027 $724,048 
Liabilities, temporary equity and stockholders' equity      
Current liabilities:      
Accounts payable$65,573 $79,794 
Accrued interconnection costs 36,689  9,717 
Accrued payroll and employee benefits 22,127  20,023 
Accrued expenses and other current liabilities 48,338  34,042 
Billings in excess of costs and recognized earnings on uncompleted contracts 20,045  41,959 
Accrued income taxes 1,470  512 
Accrued interest 11,567  3,125 
Current portion of long-term debt 13,454  10,444 
Current portion of pension liability   5,966 
Total current liabilities 219,263  205,582 
Long-term debt 374,404  332,927 
Pension liability 27,664  31,244 
Other liabilities 8,151  1,617 
Total liabilities 629,482  571,370 
Commitments and contingencies      
Temporary equity      
Preferred stock, $0.001 par value – 20,000,000 shares authorized; Series A - 30,000 shares issued and outstanding at September 30, 2015 and December 31, 2014; Series A-1 - 10,000 and 11,000 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively; Series A-2 - 14,000 and 0 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively 53,403  39,845 
Stockholders' equity:      
Common stock, $0.001 par value – 80,000,000 shares authorized; 25,623,982 and 23,844,711 shares issued and 25,592,356 and 23,813,085 shares outstanding at September 30, 2015 and December 31, 2014, respectively 26  24 
Additional paid-in capital 151,662  147,081 
Accumulated deficit (62,727) (41,880)
Treasury stock, at cost – 31,626 shares at September 30, 2015 and December 31, 2014, respectively (378) (378)
Accumulated other comprehensive loss (28,273) (15,178)
Total HC2 Holdings, Inc. stockholders' equity before noncontrolling interest 60,310  89,669 
Noncontrolling interest 21,832  23,164 
Total stockholders' equity 82,142  112,833 
Total liabilities, temporary equity and stockholders' equity$765,027 $724,048 

(in thousands)
 Nine Months Ended September 30,
  2015  2014 
Cash flows from operating activities:  
Net loss$  (20,839)$  (22,397)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:  
Provision for doubtful accounts receivable   325    (114)
Share-based compensation expense   6,943    1,725 
Depreciation and amortization   22,570    4,071 
Amortization of deferred financing costs   1,030    288 
Lease termination costs   1,124   
(Gain) loss on sale or disposal of assets   (986)   635 
(Gain) loss on sale of investments   (399)   (437)
Equity investment (income)/loss   724    288 
Amortization of debt discount   216    1,381 
Unrealized (gain) loss on investments   (32)  
Loss on early extinguishment of debt     6,947 
Deferred income taxes   (8,143)   1 
Other, net   225   — 
Unrealized foreign currency transaction (gain) loss on intercompany and foreign debt   90    57 
Changes in assets and liabilities, net of acquisitions:  
(Increase) decrease in accounts receivable   (36,099)   6,037 
(Increase) decrease in costs and recognized earnings in excess of billings on uncompleted contracts   (9,253)   522 
(Increase) decrease in inventories   455    (1,984)
(Increase) decrease in prepaid expenses and other current assets   (4,799)   25,539 
(Increase) decrease in other assets   1,483    1,558 
Increase (decrease) in accounts payable   (15,675)   1,751 
Increase (decrease) in accrued interconnection costs   26,915    (2,618)
Increase (decrease) in accrued payroll and employee benefits   2,936    3,055 
Increase (decrease) in accrued expenses and other current liabilities   18,406    (3,785)
Increase (decrease) in billings in excess of costs and recognized earnings on uncompleted contracts   (21,933)   (7,695)
Increase (decrease) in accrued income taxes   2,060    (2,198)
Increase (decrease) in accrued interest   8,442    502 
Increase (decrease) in other liabilities   (720)   (1,371)
Increase (decrease) in pension liability   (8,665)  
Net cash (used in) provided by operating activities   (33,599)   11,758 
Cash flows from investing activities:  
Purchase of property, plant and equipment   (16,751)   (4,064)
Sale of property and equipment and other assets   4,994    3,696 
Purchase of equity investments   (11,506)   (15,363)
Sale of equity investments   1,026   
Sale of assets held for sale   1,479   — 
Purchase of available-for-sale securities   (10,857)   (3,277)
Sale of available-for-sale securities   5,850    24 
Investment in debt securities   (19,347)   (250)
Sale of investments     1,111 
Cash paid for business acquisitions, net of cash acquired   (568)   (163,510)
Purchase of noncontrolling interest   (239)   (6,978)
Contribution by noncontrolling interest     15,500 
Receipt of dividends from equity investees   2,448   — 
(Increase) decrease in restricted cash   (727)  
Net cash used in investing activities   (44,198)   (173,111)
Cash flows from financing activities:  
Proceeds from long-term obligations   425,527    492,068 
Principal payments on long-term obligations   (379,037)   (294,237)
Payment of fees on restructuring of debt     (837)
Payment of deferred financing costs   (1,137)  
Proceeds from sale of common stock, net     6,000 
Proceeds from sale of preferred stock, net   14,033    39,765 
Proceeds from the exercise of warrants and stock options  —    24,344 
Payment of dividends   (3,855)   (750)
Taxes paid in lieu of shares issued for share-based compensation     (41)
Net cash provided by financing activities   55,531    266,312 
Effects of exchange rate changes on cash and cash equivalents   (4,646)   (2,217)
Net change in cash and cash equivalents   (26,912)   102,742 
Cash and cash equivalents, beginning of period   107,978    8,997 
Cash and cash equivalents, end of period$  81,066 $  111,739 

(in thousands)
Three Months Ended September 30,
 20152014 Actual2014 Pro Forma2015 Compared to 2014
Pro Forma
(in thousands)Net
% of
% of
% of
VarianceVariance %
Telecommunications$116,872  42.1%$41,267  23.0%$41,267  18.4%$75,605  183.2%
Manufacturing 122,932  44.3% 137,706  76.7% 137,706  61.5% (14,774) (10.7)%
Marine Services 35,062  12.6%   % 44,393  19.8% (9,331) (21.0)%
Utilities 1,841  0.7% 460  0.3% 561  0.3% 1,280  228.2%
Other 760  0.3%   %   % 760  100.0%
Total Net Revenue$277,467  100.0%$179,433  100.0%$223,927  100.0%$53,540  23.9%
Less net revenue from:                        
Marine Services             (44,393)         
Utilities             (101)         
Total Net Revenue - Actual            $179,433          

Nine Months Ended September 30,
 20152014 Actual2014 Pro Forma2015 Compared to 2014
Pro Forma
(in thousands)Net
% of
% of
% of
VarianceVariance %
Telecommunications$267,554  35.2%$126,731  39.7%$126,731  20.1%$140,823  111.1%
Manufacturing 380,783  50.1% 192,182  60.2% 369,923  58.7% 10,860  2.9%
Marine Services 105,939  13.9%   % 132,215  21.0% (26,276) (19.9)%
Utilities 4,432  0.6% 460  0.1% 1,166  0.2% 3,266  280.1%
Other 1,549  0.2%   %   % 1,549  100.0%
Total Net Revenue$760,257  100.0%$319,373  100.0%$630,035  100.0%$130,222  20.7%
Less net revenue from:                        
Manufacturing             (177,741)         
Marine Services             (132,215)         
Utilities             (706)         
Total Net Revenue - Actual            $319,373          

(in thousands)
 Three Months Ended September 30, 2015
and Marine
TelecommunicationsCorporateOther (1)HC2
Net income (loss)$7,116 $8,016 $15,132 $(362)$(12,549)$(6,791)$(4,570)
Adjustments to reconcile net income (loss) to Adjusted EBIT:                     
(Gain) loss on sale or disposal of assets (990) (968) (1,958)     1  (1,957)
Lease termination costs       1,124      1,124 
Interest expense 354  929  1,283    9,050  10  10,343 
Amortization of debt discount         40    40 
Other (income) expense, net (141) (214) (355) 1  (873) 11  (1,216)
Foreign currency transaction (gain) loss   (937) (937) (163) 1    (1,099)
Income tax (benefit) expense 5,284  130  5,414    (6,063)   (649)
Loss from discontinued operations           24  24 
Noncontrolling interest 383    383      (318) 65 
Share-based payment expense         2,322  22  2,344 
Acquisition related costs         2,732    2,732 
Other costs       109      109 
Adjusted EBIT 12,006  6,956  18,962  709  (5,340) (7,041) 7,290 
Depreciation and amortization 513  5,085  5,598  98    897  6,593 
Depreciation and amortization (included in cost of revenue) 1,928    1,928        1,928 
Foreign currency (gain) loss (included in cost of revenue)   (1,739) (1,739)       (1,739)
Adjusted EBITDA$14,447 $10,302 $24,749 $807 $(5,340)$(6,144)$14,072 
(1) Other includes Utilities, Life Sciences and income (loss) from equity investees not included in our Marine Services segment.

 Nine Months Ended September 30, 2015
Manufacturing and
Marine Services
TelecommunicationsCorporateOther (1)HC2
Net income (loss)$16,182 $19,983 $36,165 $(299)$(39,083)$(17,630)$(20,847)
Adjustments to reconcile net income (loss) to Adjusted EBIT:                     
(Gain) loss on sale or disposal of assets (69) (968) (1,037) 50    1  (986)
Lease termination costs       1,124      1,124 
Interest expense 1,064  2,888  3,952    25,007  33  28,992 
Amortization of debt discount         216    216 
Other (income) expense, net (164) (251) (415) (5) 3,941  7  3,528 
Foreign currency transaction (gain) loss   (1,842) (1,842) (309) 1    (2,150)
Income tax (benefit) expense 12,188  142  12,330    (16,348)   (4,018)
Loss from discontinued operations 20    20      24  44 
Noncontrolling interest 967    967      (959) 8 
Share-based payment expense         6,921  22  6,943 
Acquisition related costs         4,701    4,701 
Other costs       109      109 
Adjusted EBIT 30,188  19,952  50,140  670  (14,644) (18,502) 17,664 
Depreciation and amortization 1,490  13,196  14,686  294    1,855  16,835 
Depreciation and amortization (included in cost of revenue) 5,735    5,735        5,735 
Foreign currency (gain) loss (included in cost of revenue)   (804) (804)       (804)
Adjusted EBITDA$37,413 $32,344 $69,757 $964 $(14,644)$(16,647)$39,430 
(1) Other includes Utilities, Life Sciences and income (loss) from equity investees not included in our Marine Services segment.

 Three Months EndedNine Months Ended
 September 30, 2014
Net income (loss)$(15,879)$(24,387)
Adjustments to reconcile net income (loss) to Adjusted EBIT:      
(Gain) loss on sale or disposal of assets (448) (81)
Lease termination costs    
Interest expense 2,103  3,116 
Amortization of debt discount 805  1,381 
Loss on early extinguishment or restructuring of debt 6,947  6,947 
Other (income) expense, net 1,092  (524)
Foreign currency transaction (gain) loss (170) (573)
Income tax (benefit) expense 4,515  6,470 
Loss from discontinued operations 106  62 
(Gain) loss from sale of discontinued operations (663) 121 
Noncontrolling interest 931  1,990 
Share-based payment expense 719  1,725 
Acquisition related costs 5,345  8,663 
Other costs    
Adjusted EBIT 5,403  4,910 
Depreciation and amortization 921  1,475 
Depreciation and amortization (included in cost of revenue) 2,107  2,589 
Foreign currency (gain) loss (included in cost of revenue)    
Adjusted EBITDA$8,431 $8,974 

For More Information on HC2 Holdings, Inc., Please Contact:

Ashleigh Douglas

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Source: GlobeNewswire (November 2, 2015 - 7:03 AM EST)

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