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HCHC HC2

HC2 Holdings Inc. , formerly known as Primus Telecommunications Group, Inc. , is a public financial services company. The company was renamed HC2 Holdings, Inc in April 2014 after HRG Group Inc. acquired a 40.5% stake in the company, changing HC2's Stock Market ticker on the NYSE to HCHC. Since January 2014, HC2 has acquired a diverse array of operating subsidiaries, each with its own dedicated management team across a broad range of industries. This includes the acquisition of Schuff Steel, America's largest steel fabricator in the first half of 2014 and Global Marine Systems, a British company specializing in building subsea cable infrastructure in the 3rd quarter of 2014. The company divested all telecommunications interests with the exception of PTGi-ICS. Primus commenced operations in 1994 intent on being a global, facilities based service provider. They entered the U.S market in 1995 by assembling their core management team and beginning operations.

Company profile

Ticker
HCHC
Exchange
Website
CEO
Philip Falcone
Employees
Incorporated
Location
Fiscal year end
Former names
PRIMUS TELECOMMUNICATIONS GROUP INC, PTGi HOLDING, INC.
SEC CIK

HCHC stock data

(
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Calendar

10 Mar 21
17 Apr 21
31 Dec 21
Quarter (USD)
Dec 20 Sep 20 Jun 20 Mar 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD)
Dec 20 Sep 20 Jun 20 Mar 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS

Financial data from HC2 earnings reports.

Cash burn rate (estimated) Burn method: Change in cash Burn method: Operating income/loss Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 233.8M 233.8M 233.8M 233.8M 233.8M 233.8M
Cash burn (monthly) (positive/no burn) (positive/no burn) (positive/no burn) 816.67K 11.9M (positive/no burn)
Cash used (since last report) n/a n/a n/a 2.91M 42.42M n/a
Cash remaining n/a n/a n/a 230.89M 191.38M n/a
Runway (months of cash) n/a n/a n/a 282.7 16.1 n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
17 Mar 21 Barr Wayne JR Common Stock Buy Aquire P No No 3.55 1,500 5.33K 266,219
16 Mar 21 Glazer Avram A Common Stock Buy Aquire P Yes No 3.8 2,164,108 8.22M 2,164,108
16 Mar 21 Sena Michael J. Common Stock Sell Dispose S No No 3.5523 16,555 58.81K 575,210
16 Mar 21 Barr Wayne JR Common Stock Buy Aquire P No No 3.6 1,000 3.6K 264,719
16 Mar 21 Barr Wayne JR Common Stock Buy Aquire P No No 3.7 5,000 18.5K 263,719
16 Mar 21 Ferraro Joseph Anthony Common Stock Sell Dispose S No No 3.6599 669 2.45K 287,628
15 Mar 21 Herbst Suzi R Common Stock Sell Dispose S No No 3.5983 9,619 34.61K 152,008
15 Mar 21 Herbst Suzi R Common Stock Grant Aquire A No No 0 60,000 0 161,627
15 Mar 21 Sena Michael J. Common Stock Grant Aquire A No No 0 70,000 0 591,765
15 Mar 21 Barr Wayne JR Common Stock Grant Aquire A No No 0 100,000 0 258,719

Data for the last complete 13F reporting period. To see the most recent changes to ownership, click the ownership history button above.

13F holders
Current Prev Q Change
Total holders 0 0
Opened positions 0 0
Closed positions 0 0
Increased positions 0 0
Reduced positions 0 0
13F shares
Current Prev Q Change
Total value 0 0
Total shares 0 0
Total puts 0 0
Total calls 0 0
Total put/call ratio
Largest owners
Shares Value Change
Largest transactions
Shares Bought/sold Change

Financial report summary

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Risks
  • HC2 is a holding company and its only material assets are its cash in hand, equity interests in its operating subsidiaries and its other investments. As a result, HC2’s principal source of revenue and cash flow is distributions from its subsidiaries and its subsidiaries may be limited by law and by contract in making distributions to HC2.
  • To service our indebtedness and other obligations, we will require a significant amount of cash.
  • The agreements governing our indebtedness and Certificate of Designations for our outstanding shares of preferred stock contain various covenants that limit our discretion in the operation of our business and/or require us to meet financial maintenance tests and other covenants. The failure to comply with such tests and covenants could have a material adverse effect on us.
  • We have significant indebtedness and other financing arrangements and could incur additional indebtedness and other obligations, which could adversely affect our business and financial condition.
  • We have experienced significant historical, and may experience significant future, operating losses and net losses, which may hinder our ability to meet working capital requirements or service our indebtedness, and we cannot assure you that we will generate sufficient cash flow from operations to meet such requirements or service our indebtedness.
  • We and our subsidiaries may not be able to attract and/or retain additional skilled personnel.
  • We may identify material weaknesses in our internal control over financial reporting which could adversely affect our ability to report our financial condition and results of operations in a timely and accurate manner.
  • Fluctuations in the exchange rate of the U.S. dollar and in foreign currencies may adversely impact our results of operations and financial condition.
  • Because we face significant competition for acquisition and business opportunities, including from numerous companies with a business plan similar to ours, it may be difficult for us to fully execute our business strategy. Additionally, our subsidiaries also operate in highly competitive industries, limiting their ability to gain or maintain their positions in their respective industries.
  • We may be required to expend substantial sums in order to bring the companies we have acquired or may acquire in the future, into compliance with the various reporting requirements applicable to public companies and/or to prepare required financial statements, and such efforts may harm our operating results or be unsuccessful altogether.
  • Future acquisitions or business opportunities could involve unknown risks that could harm our business and adversely affect our financial condition and results of operations.
  • We rely on information systems to conduct our businesses, and failure to protect these systems against security breaches and otherwise to implement, integrate, upgrade and maintain such systems in working order could have a material adverse effect on our results of operations, cash flows or financial condition.
  • We intend to increase our operational size in the future, and may experience difficulties in managing growth.
  • We may not be able to fully utilize our net operating loss and other tax carryforwards.
  • We have restated certain of our financial statements in the past and may be required to do so in the future, which may lead to additional risks and uncertainties, including stockholder litigation and loss of investor confidence.
  • Our officers, directors, stockholders and their respective affiliates may have a pecuniary interest in certain transactions in which we are involved, and may also compete with us.
  • In the course of their other business activities, certain of our current and future directors and officers may become aware of business and acquisition opportunities that may be appropriate for presentation to us as well as the other entities with which they are affiliated. Such directors and officers are not required to and may therefore not present otherwise attractive business or acquisition opportunities to us.
  • We may suffer adverse consequences if we are deemed an investment company and we may incur significant costs to avoid investment company status.
  • We are subject to litigation in respect of which we are unable to accurately assess our level of exposure and which, if adversely determined, may have a material adverse effect on our financial condition and results of operations.
  • Deterioration of global economic conditions could adversely affect our business.
  • We are subject to risks associated with our international operations.
  • We face certain risks associated with the acquisition or disposition of businesses and lack of control over certain of our investments.
  • We have incurred substantial costs in connection with our prior acquisitions and expect to incur substantial costs in connection with any other transaction we complete in the future, which may increase our indebtedness or reduce the amount of our available cash and could adversely affect our financial condition, results of operations and liquidity.
  • Our development stage companies may never produce revenues or income.
  • We could consume resources in researching acquisitions, business opportunities or financings and capital market transactions that are not consummated, which could materially adversely affect subsequent attempts to locate and acquire or invest in another business.
  • There may be tax consequences associated with our acquisition, investment, holding and disposition of target companies and assets.
  • Our participation in current or any future joint investment could be adversely affected by our lack of sole decision-making authority, our reliance on a partner’s financial condition and disputes between us and the relevant partners.
  • We may issue additional shares of common stock or preferred stock, which could dilute the interests of our stockholders and present other risks.
  • Conversion of the Convertible Notes will dilute the ownership interest of existing stockholders, including holders who had previously converted their Convertible Notes, or may otherwise depress the market price of our common stock.
  • Future sales of substantial amounts of our common stock by holders of our preferred stock or other significant stockholders may adversely affect the market price of our common stock.
  • Price fluctuations in our common stock could result from general market and economic conditions and a variety of other factors.
  • Delaware law and our charter documents contain provisions that could discourage or prevent a potential takeover, even if such a transaction would be beneficial to our stockholders.
  • We are a “smaller reporting company” and we cannot be certain whether the reduced requirements applicable to smaller reporting companies will make our common stock less attractive to investors.
  • Actions of activist stockholders, including a proxy contest, could be disruptive and potentially costly and the possibility that activist stockholders may contest, or seek changes that conflict with, our strategic direction could cause uncertainty about the strategic direction of our business. Such actions may also trigger a change in control under certain agreements to which the Company is party, which could materially and adversely affect our business.
  • Our newly reconstituted Board and change in executive management may not result in growth of our business or enhance stockholder value.
  • DBMG’s business is dependent upon major construction contracts, the unpredictable timing of which may result in significant fluctuations in its cash flow due to the timing of receipt of payment under such contracts.
  • The nature of DBMG’s primary contracting terms for its contracts, including fixed-price and cost-plus pricing, could have a material adverse effect on DBMG’s results of operations, cash flows or financial condition.
  • DBMG’s billed and unbilled revenue may be exposed to potential risk if a project is terminated or canceled or if DBMG’s customers encounter financial difficulties.
  • DBMG may be exposed to additional risks as it obtains new significant awards and executes its backlog, including greater backlog concentration in fewer projects, potential cost overruns and increasing requirements for letters of credit, each of which could have a material adverse effect on DBMG’s results of operations, cash flows or financial condition.
  • DBMG may not be able to fully realize the revenue value reported in its backlog, a substantial portion of which is attributable to a relatively small number of large contracts or other commitments.
  • DBMG’s failure to meet contractual schedule or performance requirements could have a material adverse effect on DBMG’s results of operations, cash flows or financial condition.
  • DBMG’s government contracts may be subject to modification or termination, which could have a material adverse effect on DBMG’s results of operations, cash flows or financial condition.
  • DBMG is exposed to potential risks and uncertainties associated with its reliance on subcontractors and third-party vendors to execute certain projects.
  • Any increase in the price of, or change in supply and demand for, the steel and steel components that DBMG utilizes to complete projects could have a material adverse effect on DBMG’s results of operations, cash flows or financial condition.
  • DBMG’s dependence on suppliers of steel and steel components makes it vulnerable to a disruption in the supply of its products.
  • Intense competition in the markets DBMG serves could reduce DBMG’s market share and earnings.
  • DBMG’s customers’ ability to receive the applicable regulatory and environmental approvals for projects and the timeliness of those approvals could adversely affect DBMG’s business.
  • DBMG’s failure to obtain or maintain required licenses may adversely affect its business.
  • Volatility in equity and credit markets could adversely impact DBMG due to its impact on the availability of funding for DBMG’s customers, suppliers and subcontractors.
  • DBMG’s business may be adversely affected by bonding and letter of credit capacity.
  • DBMG is vulnerable to significant fluctuations in its liquidity that may vary substantially over time.
  • DBMG’s projects expose it to potential professional liability, product liability, warranty and other claims.
  • DBMG may experience increased costs and decreased cash flow due to compliance with environmental laws and regulations, liability for contamination of the environment or related personal injuries.
  • DBMG is and will likely continue to be involved in litigation that could have a material adverse effect on DBMG’s results of operations, cash flows or financial condition.
  • Work stoppages, union negotiations and other labor problems could adversely affect DBMG’s business.
  • DBMG’s employees work on projects that are inherently dangerous, and a failure to maintain a safe work site could result in significant losses.
  • We may not be able to successfully integrate HC2 Broadcasting's recent acquisitions into our business, or realize the anticipated benefits of these acquisitions.
  • Our broadcasting business conducted by HC2 Broadcasting operates in highly competitive markets and our ability to maintain market share and generate operating revenues depends on how effectively we compete with existing and new competition.
  • The Federal Communications Commission ("FCC") could implement regulations or the U.S. Congress could adopt legislation that might have a significant impact on the operations of the stations we own and the stations we provide services to or the television broadcasting industry as a whole.
  • Broadcasting Licenses are issued by, and subject to the jurisdiction of the FCC, pursuant to the Communications Act of 1934, as amended (the "Communications Act"). The Communications Act empowers the FCC, among other actions, to issue, renew, revoke and modify broadcasting licenses; determine stations’ frequencies, locations and operating power; regulate some of the equipment used by stations; adopt other regulations to carry out the provisions of the Communications Act and other laws, including requirements affecting the content of broadcasts; and to impose penalties for violation of its regulations, including monetary forfeitures, short-term renewal of licenses and license revocation or denial of license renewals.
  • Our acquisitions of the Insurance Companies are subject to certain post-closing adjustments.
  • If our Insurance segment is unable to retain, attract and motivate qualified employees, its results of operations and financial condition may be adversely impacted and it may incur additional costs to recruit replacement and additional personnel.
  • The amount of statutory capital our Insurance segment has and the amount of statutory capital that it must hold to maintain its financial strength and meet other requirements can vary significantly from time to time and is sensitive to a number of factors outside of our Insurance segment’s control.
  • Our Insurance segment’s results and financial condition may be negatively affected should actual performance differ from management’s assumptions and estimates.
  • If our Insurance segment’s reserves for future policy claims are inadequate as a result of deviations from management’s assumptions and estimates or other reasons, our Insurance segment may be required to increase reserves, which could have a material adverse effect on its results of operations and financial condition.
  • Our Insurance segment’s inability to increase premiums on in-force long-term care insurance policies by sufficient amounts or in a timely manner may adversely affect our Insurance segment’s results of operations and financial condition.
  • Our Insurance segment is highly regulated and subject to numerous legal restrictions and regulations.
  • Our Insurance segment’s reinsurers could fail to meet assumed obligations or be subject to adverse developments that could materially adversely affect our Insurance segment’s business, financial condition and results of operations.
  • Our Insurance segment’s financial condition or results of operations could be adversely impacted if its assumptions regarding the fair value and future performance of its investments differ from actual experience.
  • Interest rate fluctuations and withdrawal demands in excess of assumptions could negatively affect our Insurance segment’s business, financial condition and results of operations.
  • Our Insurance segment is subject to financial disintermediation risks in rising interest rate environments.
  • Our Insurance segment is subject to cyber-attacks and other privacy or data security incidents. If we are unable to prevent or contain the effects of any such attacks, we may suffer exposure to substantial liability, reputational harm, loss of revenue or other damages.
  • Our Insurance segment’s investments are subject to market, credit, legal and regulatory risks that could be heightened during periods of extreme volatility or disruption in financial and credit markets.
  • Credit spreads could adversely affect our Insurance segment’s investment portfolio and financial position.
  • Concentration of our Insurance segment’s investment portfolio in any particular economic sector or asset type may increase our Insurance segment’s exposure to risk if that area of concentration experiences events that cause underperformance.
  • Our Insurance segment must continue to evaluate the need for a valuation allowance against its deferred tax assets.
  • Financial services companies are frequently the targets of litigation, including class action litigation, which could result in substantial judgments.
  • Companies in the financial services industry are sometimes the target of law enforcement investigations and the focus of increased regulatory scrutiny.
  • Our Insurance segment is dependent on the performance of others under the Administrative Services Agreement and on an ongoing basis as part of its business.
  • Our Insurance segment’s ability to grow depends in large part upon the continued availability of capital.
  • New accounting rules, changes to existing accounting rules, or the grant of permitted accounting practices to competitors could negatively impact our Insurance segment.
  • Our Insurance segment is exposed to the risks of natural and man-made catastrophes, pandemics and malicious and terrorist acts that could materially adversely affect our Insurance segment’s business, financial condition and results of operations.
  • Future acquisition transactions may not be financially beneficial to our Insurance segment.
  • Our Insurance segment may be unable to execute acquisition transactions in accordance with its strategy.
  • Our Insurance segment’s investment portfolio is subject to various risks that may result in realized investment losses. In particular, decreases in the fair value of fixed maturity securities may significantly reduce the value of our investments, and as a result, our financial condition may suffer.
  • Unanticipated increases in policyholder withdrawals or surrenders could negatively impact liquidity.
Management Discussion
  • (1) The Insurance segment revenues are inclusive of realized and unrealized gains and net investment income for the year ended December 31, 2020 and 2019, which are related to transactions between entities under common control which are eliminated or are reclassified in consolidation.
  • Net revenue: Net revenue for the year ended December 31, 2020 decreased $71.2 million to $1,005.8 million from $1,077.0 million for the year ended December 31, 2019. The decrease in revenue was driven by our Infrastructure segment, primarily driven by lower revenues from our structural steel fabrication and erection business, and our Insurance segment, net of eliminations, largely driven by lower net investment income and unfavorable market movements in values for common and preferred stock holdings and fixed maturity impairments.
  • (Loss) income from operations: (Loss) income from operations for the year ended December 31, 2020 decreased $29.4 million to a loss of $4.1 million from income of $25.3 million for the year ended December 31, 2019. The decrease is attributable to our Infrastructure segment due to lower revenues from our structural steel fabrication and erection business and our Life Sciences segment driven by R2, which increased spending in the current period to support commercialization efforts and further develop its product platform. This was partially offset by a decrease in loss at our Spectrum segment related to cost reductions at Network and gains recognized on the sale of broadcast stations in the current period.
Content analysis
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Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. sophomore Avg
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