2015 Q3 Form 10-Q Financial Statement

#000100683715000007 Filed on November 09, 2015

View on sec.gov

Income Statement

Concept 2015 Q3 2014 Q4 2014 Q3
Revenue $277.5M $224.2M $183.3M
YoY Change 51.38% 329.53% 200.09%
Cost Of Revenue $138.1M $188.9M $161.5M
YoY Change -14.49% 273.2% 174.88%
Gross Profit $139.4M $35.33M $21.79M
YoY Change 539.48% 2124.75% 837.38%
Gross Profit Margin 50.23% 15.76% 11.89%
Selling, General & Admin $28.81M $37.10M $20.25M
YoY Change 42.3% 102.73% 221.72%
% of Gross Profit 20.67% 105.01% 92.9%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $9.000M $6.600M $2.800M
YoY Change 221.43% -45.0% 2700.0%
% of Gross Profit 6.46% 18.68% 12.85%
Operating Expenses $275.6M $42.00M $179.4M
YoY Change 53.65% 38.61% 175.13%
Operating Profit $2.644M -$6.823M -$2.580M
YoY Change -202.48% -62.16% -37.27%
Interest Expense $10.38M -$5.100M $2.103M
YoY Change 393.72% 240.0% 70000.0%
% of Operating Profit 392.7%
Other Income/Expense, Net $1.193M -$1.092M
YoY Change -209.25%
Pretax Income -$6.394M -$16.90M -$10.70M
YoY Change -40.25% -30.45% 457.69%
Income Tax $1.504M -$29.30M $4.515M
% Of Pretax Income
Net Earnings -$7.987M $11.00M -$15.88M
YoY Change -49.7% -169.62% 136.82%
Net Earnings / Revenue -2.88% 4.91% -8.66%
Basic Earnings Per Share -$0.35 $0.66 -$0.79
Diluted Earnings Per Share -$0.35 $0.60 -$0.79
COMMON SHARES
Basic Shares Outstanding 25.59M shares 23.81M shares 23.37M shares
Diluted Shares Outstanding 25.59M shares 28.96M shares 23.37M shares

Balance Sheet

Concept 2015 Q3 2014 Q4 2014 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $81.10M $108.0M $111.7M
YoY Change -27.39% 1100.0% 620.65%
Cash & Equivalents $81.07M $108.0M $111.7M
Short-Term Investments
Other Short-Term Assets $65.10M $50.60M $63.50M
YoY Change 2.52% 24.63% 88.43%
Inventory $14.41M $14.98M $23.89M
Prepaid Expenses
Receivables $187.5M $152.3M $170.5M
Other Receivables $200.0K $0.00 $1.400M
Total Short-Term Assets $359.7M $335.5M $363.6M
YoY Change -1.06% 347.93% 253.63%
LONG-TERM ASSETS
Property, Plant & Equipment $221.8M $233.0M $239.6M
YoY Change -7.4% 7767.05% 34974.96%
Goodwill $30.67M $30.54M $35.51M
YoY Change -13.65% 804.09%
Intangibles $31.16M
YoY Change
Long-Term Investments $78.50M $47.61M $47.10M
YoY Change 66.67%
Other Assets $18.20M $32.38M $22.72M
YoY Change -19.89% 402.76% 263.13%
Total Long-Term Assets $405.3M $376.7M $366.3M
YoY Change 10.65% 2847.31% 5178.2%
TOTAL ASSETS
Total Short-Term Assets $359.7M $335.5M $363.6M
Total Long-Term Assets $405.3M $376.7M $366.3M
Total Assets $765.0M $712.2M $729.9M
YoY Change 4.82% 712.23% 565.03%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $65.57M $79.79M $55.81M
YoY Change 17.49% 1045.81%
Accrued Expenses $118.7M $72.90M $83.80M
YoY Change 41.65% 273.85% 2105.26%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $13.45M $10.44M $22.41M
YoY Change -39.96%
Total Short-Term Liabilities $219.3M $205.6M $212.3M
YoY Change 3.3% 548.52% 437.18%
LONG-TERM LIABILITIES
Long-Term Debt $374.4M $332.9M $290.4M
YoY Change 28.93%
Other Long-Term Liabilities $8.151M $1.617M $1.726M
YoY Change 372.25% 2.93% 838.04%
Total Long-Term Liabilities $382.6M $334.5M $292.1M
YoY Change 30.96% 21194.97% 158660.87%
TOTAL LIABILITIES
Total Short-Term Liabilities $219.3M $205.6M $212.3M
Total Long-Term Liabilities $382.6M $334.5M $292.1M
Total Liabilities $629.5M $563.9M $562.9M
YoY Change 11.83% 1594.93% 1318.04%
SHAREHOLDERS EQUITY
Retained Earnings -$62.73M -$44.16M -$54.16M
YoY Change 15.82% 48.34% 231.9%
Common Stock $151.7M $142.0M $134.8M
YoY Change 12.55% 43.97% 33.97%
Preferred Stock
YoY Change
Treasury Stock (at cost) $378.0K $378.0K $378.0K
YoY Change 0.0% 0.0% 0.0%
Treasury Stock Shares 31.63K shares 31.63K shares 31.63K shares
Shareholders Equity $60.31M $79.19M $64.37M
YoY Change
Total Liabilities & Shareholders Equity $765.0M $712.2M $729.9M
YoY Change 4.82% 712.23% 565.03%

Cashflow Statement

Concept 2015 Q3 2014 Q4 2014 Q3
OPERATING ACTIVITIES
Net Income -$7.987M $11.00M -$15.88M
YoY Change -49.7% -169.62% 136.82%
Depreciation, Depletion And Amortization $9.000M $6.600M $2.800M
YoY Change 221.43% -45.0% 2700.0%
Cash From Operating Activities $16.70M $14.60M -$16.80M
YoY Change -199.4% -360.71% 194.74%
INVESTING ACTIVITIES
Capital Expenditures $3.837M $1.700M $3.400M
YoY Change 12.85% 183.33% 70.0%
Acquisitions
YoY Change
Other Investing Activities $6.400M -$35.20M -$59.40M
YoY Change -110.77% -158.64%
Cash From Investing Activities $2.600M -$36.90M -$62.80M
YoY Change -104.14% 6050.0% -163.24%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -4.000M 18.30M 152.6M
YoY Change -102.62% -18400.0% -161.43%
NET CHANGE
Cash From Operating Activities 16.70M 14.60M -16.80M
Cash From Investing Activities 2.600M -36.90M -62.80M
Cash From Financing Activities -4.000M 18.30M 152.6M
Net Change In Cash 15.30M -4.000M 73.00M
YoY Change -79.04% -36.51% -147.16%
FREE CASH FLOW
Cash From Operating Activities $16.70M $14.60M -$16.80M
Capital Expenditures $3.837M $1.700M $3.400M
Free Cash Flow $12.86M $12.90M -$20.20M
YoY Change -163.68% -308.06% 162.34%

Facts In Submission

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us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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us-gaap Net Income Loss
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us-gaap Net Income Loss
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us-gaap Net Income Loss Attributable To Noncontrolling Interest
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us-gaap Net Income Loss Available To Common Stockholders Basic
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us-gaap Net Income Loss Available To Common Stockholders Basic
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us-gaap Net Income Loss Available To Common Stockholders Diluted
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us-gaap Net Income Loss Available To Common Stockholders Diluted
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us-gaap Proceeds From Sale Of Property Plant And Equipment
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14033000 USD
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0 USD
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24000 USD
us-gaap Proceeds From Sale Of Available For Sale Securities
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5850000 USD
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us-gaap Revenues
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319373000 USD
CY2015Q3 us-gaap Revenues
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277467000 USD
us-gaap Revenues
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760257000 USD
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us-gaap Sales Revenue Goods Net
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us-gaap Sales Revenue Goods Net
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386765000 USD
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0.4050
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us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate Minimum
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P5Y4M16D
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0.0149
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us-gaap Share Based Compensation
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us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
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us-gaap Sales Revenue Services Net
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126731000 USD
CY2015Q3 us-gaap Sales Revenue Services Net
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151933000 USD
us-gaap Sales Revenue Services Net
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us-gaap Selling General And Administrative Expense
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CY2015Q3 us-gaap Selling General And Administrative Expense
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us-gaap Selling General And Administrative Expense
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us-gaap Stock Issued During Period Value Restricted Stock Award Gross
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hchc Contracts In Progress
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">CONTRACTS IN PROGRESS</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Costs and recognized earnings in excess of billings on uncompleted contracts and billings in excess of costs and recognized earnings on uncompleted contracts consist of the following (in thousands):</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;text-align:left;"><tr><td colspan="8" rowspan="1"></td></tr><tr><td width="65%" rowspan="1" colspan="1"></td><td width="1%" rowspan="1" colspan="1"></td><td width="15%" rowspan="1" colspan="1"></td><td width="1%" rowspan="1" colspan="1"></td><td width="1%" rowspan="1" colspan="1"></td><td width="1%" rowspan="1" colspan="1"></td><td width="15%" rowspan="1" colspan="1"></td><td width="1%" rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;font-weight:bold;">September&#160;30, 2015</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;font-weight:bold;">December&#160;31, 2014</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Costs incurred on contracts in progress</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">636,345</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">531,129</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Estimated earnings</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">96,953</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">73,540</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">733,298</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">604,669</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Less progress billings</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">716,077</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">618,530</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">17,221</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">(13,861</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;padding-right:2px;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">)</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The above is included in the accompanying condensed consolidated balance sheet under the following captions:</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Costs and recognized earnings in excess of billings on uncompleted contracts</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">37,266</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">28,098</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Billings in excess of costs and recognized earnings on uncompleted contracts</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">20,045</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">41,959</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">17,221</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">(13,861</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;padding-right:2px;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">)</font></div></td></tr></table></div></div></div>
us-gaap Nature Of Operations
NatureOfOperations
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">ORGANIZATION AND BUSINESS</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">HC2 Holdings, Inc. (&#8220;HC2&#8221; and, together with its subsidiaries, the &#8220;Company&#8221;, &#8220;we&#8221; and &#8220;our&#8221;) is a diversified holding company which seeks to acquire and grow attractive businesses that we believe can generate long-term sustainable free cash flow and attractive returns. While the Company generally intends to acquire controlling equity interests in its operating subsidiaries, the Company may invest to a limited extent in a variety of debt instruments or noncontrolling equity interest positions. The Company&#8217;s shares of common stock trade on the NYSE MKT LLC under the symbol &#8220;HCHC&#8221;.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company currently has </font><font style="font-family:inherit;font-size:10pt;">six</font><font style="font-family:inherit;font-size:10pt;"> reportable segments based on management&#8217;s organization of the enterprise&#8212;Manufacturing, Marine Services, Utilities, Telecommunications, Life Sciences and Other, which includes operations that do not meet the separately reportable segment thresholds.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Our Manufacturing segment includes Schuff International, Inc. (&#8220;Schuff&#8221;) and its wholly-owned subsidiaries, which primarily operate as integrated fabricators and erectors of structural steel and heavy steel plates with headquarters in Phoenix, Arizona. Schuff has operations in Arizona, Georgia, Texas, Kansas and California, with its construction projects primarily located in the aforementioned states. In addition, Schuff has construction projects in select international markets, primarily Panama through a Panamanian joint venture with Empresas Hopsa, S.A. that provides steel fabrication services.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Our Marine Services segment includes Global Marine Systems Limited (&#8220;GMSL&#8221;). GMSL is a leading provider of engineering and underwater services on submarine cables. In conjunction with our acquisition of GMSL, approximately </font><font style="font-family:inherit;font-size:10pt;">3%</font><font style="font-family:inherit;font-size:10pt;"> of the Company&#8217;s interest in GMSL was purchased by a group of individuals, leaving the Company&#8217;s controlling interest at approximately </font><font style="font-family:inherit;font-size:10pt;">97%</font><font style="font-family:inherit;font-size:10pt;">.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Our Utilities segment includes American Natural Gas (&#8220;ANG&#8221;), which is a premier distributor of natural gas motor fuel headquartered in the Northeast that designs, builds, owns, acquires, operates and maintains compressed natural gas fueling stations for transportation vehicles.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In our Telecommunications segment, we operate a telecommunications business including a network of direct routes and provide premium voice communication services for national telecom operators, mobile operators, wholesale carriers, prepaid operators, Voice over Internet Protocol service operators and Internet service providers from our International Carrier Services (&#8220;ICS&#8221;) business unit.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In our Life Sciences segment, we operate Pansend Life Sciences, LLC (&#8220;Pansend&#8221;, f/k/a Pansend, LLC), which has a </font><font style="font-family:inherit;font-size:10pt;">77%</font><font style="font-family:inherit;font-size:10pt;"> interest in Genovel Orthopedics, Inc., which seeks to develop products to treat early osteoarthritis of the knee, and a </font><font style="font-family:inherit;font-size:10pt;">61%</font><font style="font-family:inherit;font-size:10pt;"> interest in R2 Dermatology (f/k/a GemDerm Aesthetics, Inc.), which develops skin lightening technology. Additionally, in August 2015, the Company purchased </font><font style="font-family:inherit;font-size:10pt;">180,415</font><font style="font-family:inherit;font-size:10pt;"> shares of MediBeacon, Inc., Preferred Stock for </font><font style="font-family:inherit;font-size:10pt;">$2.9 million</font><font style="font-family:inherit;font-size:10pt;"> for a total ownership of approximately </font><font style="font-family:inherit;font-size:10pt;">9%</font><font style="font-family:inherit;font-size:10pt;">. </font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;"></font><font style="font-family:inherit;font-size:10pt;">In February 2015, the Company sold </font><font style="font-family:inherit;font-size:10pt;">586,095</font><font style="font-family:inherit;font-size:10pt;"> shares of Novatel Wireless, Inc. (&#8220;Novatel&#8221;)</font><font style="font-family:inherit;font-size:10pt;font-style:italic;"> </font><font style="font-family:inherit;font-size:10pt;">common stock and a warrant to purchase </font><font style="font-family:inherit;font-size:10pt;">293,047</font><font style="font-family:inherit;font-size:10pt;"> shares of Novatel's common stock for </font><font style="font-family:inherit;font-size:10pt;">$1.0 million</font><font style="font-family:inherit;font-size:10pt;"> which resulted in a gain of </font><font style="font-family:inherit;font-size:10pt;">$0.2 million</font><font style="font-family:inherit;font-size:10pt;">. In March 2015, the Company exercised a warrant to purchase </font><font style="font-family:inherit;font-size:10pt;">3,824,600</font><font style="font-family:inherit;font-size:10pt;"> shares of Novatel's common stock for </font><font style="font-family:inherit;font-size:10pt;">$8.6 million</font><font style="font-family:inherit;font-size:10pt;"> and also acquired a new warrant to purchase </font><font style="font-family:inherit;font-size:10pt;">1,593,583</font><font style="font-family:inherit;font-size:10pt;"> shares of Novatel's common stock at </font><font style="font-family:inherit;font-size:10pt;">$5.50</font><font style="font-family:inherit;font-size:10pt;"> per share. The Company&#8217;s ownership increased to approximately </font><font style="font-family:inherit;font-size:10pt;">23%</font><font style="font-family:inherit;font-size:10pt;"> of Novatel&#8217;s common stock. A basis difference, net of tax for the additional investment in March 2015, of </font><font style="font-family:inherit;font-size:10pt;">$5.6 million</font><font style="font-family:inherit;font-size:10pt;"> consists of a trade name of </font><font style="font-family:inherit;font-size:10pt;">$0.6 million</font><font style="font-family:inherit;font-size:10pt;"> (amortized over </font><font style="font-family:inherit;font-size:10pt;">15 years</font><font style="font-family:inherit;font-size:10pt;">), a technology and customer intangible of </font><font style="font-family:inherit;font-size:10pt;">$0.8 million</font><font style="font-family:inherit;font-size:10pt;"> (amortized over </font><font style="font-family:inherit;font-size:10pt;">7 years</font><font style="font-family:inherit;font-size:10pt;">) and goodwill of </font><font style="font-family:inherit;font-size:10pt;">$4.2 million</font><font style="font-family:inherit;font-size:10pt;">.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In the first quarter of 2015, the Company purchased </font><font style="font-family:inherit;font-size:10pt;">$3.0 million</font><font style="font-family:inherit;font-size:10pt;"> of convertible debt of DTV America Corporation (&#8220;DTV&#8221;) in aggregate. The convertible debt earned </font><font style="font-family:inherit;font-size:10pt;">10%</font><font style="font-family:inherit;font-size:10pt;"> interest. In addition, the Company acquired share purchase warrants, which are exercisable for </font><font style="font-family:inherit;font-size:10pt;">666,667</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">333,333</font><font style="font-family:inherit;font-size:10pt;"> DTV's common shares until January 20, 2018 and March 6, 2018, respectively, at an exercise price of </font><font style="font-family:inherit;font-size:10pt;">$2.00</font><font style="font-family:inherit;font-size:10pt;"> per share. The principal balance and accrued interest of the convertible debt was automatically converted into </font><font style="font-family:inherit;font-size:10pt;">2,081,693</font><font style="font-family:inherit;font-size:10pt;"> shares of common stock on June 30, 2015.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In April 2015, the Company purchased a </font><font style="font-family:inherit;font-size:10pt;">$16.1 million</font><font style="font-family:inherit;font-size:10pt;"> convertible debenture (the "Debenture") of Gaming Nation, Inc. ("Gaming Nation"). The Debenture earns </font><font style="font-family:inherit;font-size:10pt;">6%</font><font style="font-family:inherit;font-size:10pt;"> interest in-kind and the principal and interest is convertible at the Company's option into Gaming Nation's common shares at a conversion price of </font><font style="font-family:inherit;font-size:10pt;">$2.25</font><font style="font-family:inherit;font-size:10pt;">. On June 9, 2015, the Debenture became convertible into </font><font style="font-family:inherit;font-size:10pt;">8,888,889</font><font style="font-family:inherit;font-size:10pt;"> of Gaming Nation's common shares until June 9, 2017. In addition, the Company acquired a share purchase warrant, which is exercisable for </font><font style="font-family:inherit;font-size:10pt;">28,126,068</font><font style="font-family:inherit;font-size:10pt;"> of Gaming Nation's common shares until April 6, 2020 at varying exercise prices, commencing at </font><font style="font-family:inherit;font-size:10pt;">$5.00</font><font style="font-family:inherit;font-size:10pt;"> per share for the first </font><font style="font-family:inherit;font-size:10pt;">2 years</font><font style="font-family:inherit;font-size:10pt;">. For the quarter ended September 30, 2015, the Company recorded a foreign currency translation loss of </font><font style="font-family:inherit;font-size:10pt;">$1.2 million</font><font style="font-family:inherit;font-size:10pt;"> and unrealized loss on fair value of the Debenture of </font><font style="font-family:inherit;font-size:10pt;">$2.6 million</font><font style="font-family:inherit;font-size:10pt;"> within other comprehensive income.</font></div></div>
us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Reclassification</font><font style="font-family:inherit;font-size:10pt;"> - Certain previous year amounts have been reclassified to conform with current year presentations related to the reporting of new balance sheet line items.</font></div></div>

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