HC2 Holdings, Inc. (“HC2” or the “Company”) (NYSE: HCHC), a
diversified holding company, today provided an update on the
operations of its holding company and operating subsidiaries in
response to the impact of the COVID-19 outbreak, including steps
being taken to ensure employee safety during the continuing
COVID-19 outbreak.
HC2’s holding company and its subsidiaries
continue to operate, mostly uninterrupted, and the management teams
have been implementing their business continuity plans to ensure
that their businesses are able to operate and to protect the health
and safety of their employees, clients and other business partners
as the COVID-19 outbreak continues.
“Across our holding company and operating
subsidiaries we are taking steps to ensure that we are able to
operate as best as possible while ensuring the health and safety of
our employees and doing our part to slow the spread of the COVID-19
outbreak. I want to thank the entire HC2 team for their
extraordinary efforts in dealing with the COVID-19 crisis,” stated
Philip Falcone, HC2’s Chairman, Chief Executive Officer and
President.
HC2 Holdings, Inc.
In response to the impact of the COVID-19
outbreak, the Company continues to operate mostly uninterrupted and
has been implementing its business continuity plan. In response to
the directives provided by local and state authorities, and in
order to protect our employees, we have established a work from
home policy until it is deemed safe by local and state authorities
to return to the workplace. The Company’s board of directors and
management continue to maintain frequent contact and assess the
situation, and the Company continues to monitor guidance provided
by local, state, federal and global public health authorities,
standing ready to implement changes, as needed.
Construction – DBM Global Inc.
(“DBM”)
DBM is one of the largest steel fabrication,
modeler, detailer and erection companies in the U.S., offering a
full suite of integrated steel construction and professional
services.
DBM continues to operate construction, field
erection jobs and fabrication facilities across the U.S., while the
steel mills and other suppliers serving those facilities continue
to operate. However, as state and local orders are announced,
certain job sites and operations are being impacted. DBM has
implemented many measures to protect employees, clients and
business partners, including adjusting for childcare needs, working
from home where possible, while continuing to assess additional
measures. The workforce is complying with guidance on hygiene,
cleaning and social distancing as set forth by the Center for
Disease Control and other governmental agencies. The company has
not experienced any disruption to payables and
receivables.
Energy – American Natural Energy Corp.
(“ANG”)
ANG is a premier retailer of Compressed Natural
Gas (“CNG”) that designs, builds, owns, operates and maintains
natural gas fueling stations for the transportation industry. ANG’s
principal business is supplying CNG for light-, medium- and
heavy-duty vehicles.
ANG and its fueling stations continue to be
fully operational with minimal impact as transportation remains a
critical component of the supply chain. ANG services customers
across a variety of industries and markets. Demand across
industries has remained relatively consistent, with pockets of
increased demand, such as transportation for grocery clients, which
are experiencing greater than normal demand. ANG has implemented a
work-from-home policy, with the exception of field technicians, and
has implemented measures to protect the health and safety of the
field technicians and the customers they serve. The workforce is
complying with guidance on hygiene, cleaning and social
distancing as set forth by the Center for Disease Control and other
governmental agencies and will continue to assess additional
measures.
Telecom – PTGi-International Carrier
Services Inc. (“ICS”)
ICS provides customers with
internet-protocol-based and time-division multiplexing access for
the transport of long-distance voice minutes. ICS operates a global
telecommunications network consisting of domestic switching and
related peripheral equipment, and carrier-grade routers and
switches for Internet and circuit-based services. To ensure
high-quality communications services, ICS’s network employs digital
switching and fiber optic technologies, incorporates the use of
Voice-over-Internet Protocol protocols and SS7/C7 signaling, and is
supported by comprehensive network monitoring and technical support
services.
Thus far, COVID-19 has had minimal
impact on ICS’ business operations or financials. ICS will
continue to operate in accordance with the evolving regulatory
environment.
Insurance – Continental Insurance Group
Ltd. (“CIG”)
CIG is a platform for our run-off long-term care
and life and annuity business, providing coverage to approximately
132,000 individuals through its insurance company, Continental
General Insurance Company ("CGI"). The benefits provided by CGI's
insurance operations help protect policy and certificate holders
from the financial hardships associated with illness, injury, loss
of life, or income discontinuation.
CGI has a strong cash position, net of future
funding commitments. The company has intentionally kept a higher
than normal cash balance, due to unappealing market valuations for
potential investments, and to also allow it to withstand
downgrades. CGI’s book is comprised of 93% investment grade
securities and CIG has discontinued all investment activity for a
30 day period while CIG and CGI continue to monitor the impacts of
the COVID-19 crisis. Furthermore, given the significant uncertainty
in the market, CIG and CGI are taking a number of steps to prepare
for increased rates of default, forced liquidations, potential
regulator-mandated premium holidays to accommodate policyholders
who may not be able to make timely payments, downgrades and other
scenarios.
Life Sciences – Pansend Life Sciences,
LLC (“Pansend”)
Pansend focuses on the development of innovative
technologies and products in the healthcare industry.
Among Pansend’s portfolio companies, R2
Technologies and MediBeacon are conducting 90% of their business as
they would under normal conditions. This is subject to change as
their third party partners / vendors start making adjustments to
their schedules and as work policies evolve in response to the
COVID-19 crisis.
Broadcasting – HC2 Broadcasting
Holdings, Inc. (“HC2 Broadcasting”)
HC2 Broadcasting owns and operates broadcast TV
stations throughout the U.S. HC2 Broadcasting’s objective is to
build a comprehensive, nationwide over-the-air (“OTA”) broadcast TV
distribution platform that will reach a large majority of the U.S.
population when fully built, creating an avenue for high-end
content providers to deliver their product OTA to more homes and,
ultimately, mobile devices.
HC2 Broadcasting continues to be fully
operational. HC2 Broadcasting’s stations can be monitored and
operated remotely, providing significant cost efficiencies and
redundancy, and helping to ensure the safety of our employees.
“We are offering all the city, county or state
governments and first responders that serve the communities we
reach across the United States to share their programming over our
network. Our network of stations can be vital in communicating to
all constituents during this rapidly evolving situation,” added Mr.
Falcone.
About HC2 Holdings, Inc.
HC2 Holdings, Inc. is a publicly traded
(NYSE: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 multiple reportable segments,
including Construction, Energy, Telecommunications, Life Sciences,
Broadcasting, Insurance and Other. HC2's largest operating
subsidiary is DBM Global Inc., a family of companies providing
fully integrated structural and steel construction services.
Founded in 1994, HC2 is headquartered in New York, New York. Learn
more about HC2 and its portfolio companies at www.hc2.com.
Cautionary Statement Regarding Forward-Looking
Statements
Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995: This press release, 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.
Such statements are based on the beliefs and assumptions of the
Company’s management and the management of the Company’s
subsidiaries and portfolio companies. 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 or implied in the forward-looking statements due to a
variety of important factors, both positive and negative, that may
be revised or supplemented in subsequent statements and reports
filed with the U.S. Securities and Exchange Commission (the “SEC”),
including in our reports on Forms 10-K, 10-Q and 8-K. Such
important factors include, without limitation, issues related to
the restatement of our financial statements; the fact that we have
historically identified material weaknesses in our internal control
over financial reporting, and any inability to remediate future
material weaknesses; capital market conditions, including the
ability of the Company and its subsidiaries to raise capital; the
ability of the Company’s subsidiaries and portfolio companies to
generate sufficient net income and cash flows to make upstream cash
distributions; volatility in the trading price of the Common Stock;
the ability of the Company and its subsidiaries and portfolio
companies to identify any suitable future acquisition or
disposition opportunities; our ability to realize efficiencies,
cost savings, income and margin improvements, growth, economies of
scale and other anticipated benefits of strategic transactions;
difficulties related to the integration of financial reporting of
acquired or target businesses; difficulties completing pending and
future acquisitions and dispositions; activities by activist
stockholders, including a proxy contest, consent solicitation or
any unsolicited takeover proposal; effects of litigation,
indemnification claims and other contingent liabilities; changes in
regulations and tax laws; the risks and uncertainties associated
with, and resulting from, the COVID-19 pandemic; and risks that may
affect the performance of the operating subsidiaries and portfolio
companies of the Company. Although the Company believes its
expectations and assumptions regarding its future operating
performance are reasonable, there can be no assurance that the
expectations reflected herein will be achieved. These risks and
other important factors discussed under the caption “Risk Factors”
in our most recent Annual Report on Form 10-K filed with the SEC,
and our other reports filed with the SEC could cause actual results
to differ materially from those indicated by the forward-looking
statements made in this press release.
You should not place undue reliance on
forward-looking statements. All forward-looking statements
attributable to the Company 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 hereof,
and unless legally required, the Company undertakes no obligation
to update or revise publicly any forward-looking statements,
whether as a result of new information, future events or
otherwise.
Contact
Investor RelationsGarrett EdsonICRPhone: (212) 235-2691E-mail:
ir@hc2.com
HC2 (NYSE:HCHC)
Historical Stock Chart
From Mar 2024 to Apr 2024
HC2 (NYSE:HCHC)
Historical Stock Chart
From Apr 2023 to Apr 2024