HC2 Holdings, Inc. (NYSE MKT:HCHC) Q1 2020 Earnings Conference Call - Final Transcript

May 11, 2020 • 05:00 pm ET


HC2 Holdings, Inc. (NYSE MKT:HCHC) Q1 2020 Earnings Conference Call - Final Transcript


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Q & A
Philip Falcone

build out and slowing down the build out to make sure that one plus one equals two, so there's no cause for concern on that end. But if you look at from a station build perspective, we've got it down to about $160,000 for a station build, which is pretty darn efficient. Incorporating that station or not that necessarily that station but a station that's been online and putting it under central cast is about 15,000 to 20,000.

So you're not looking at a lot of money as it relates to the CapEx necessary to get everything under central cash. I mean, there's granted there's no need to -- at this point, slow that down. But there's also no need to speed it up as well. I mean, we can operate just as efficiently under central cash as not, but it's just more -- it's more, I shouldn't say more convenient, but it is a bit more efficient because you're then delivering the content into one gateway.

So it's more efficient to get every station under central cast, but it's not an absolute necessity. So we can manage that part of the business if we need to, if it looks like we need to manage cash flows, just like we can manage our build out. And then some stations are, if you're co-located, there are a lot less than 160,000. So there's things that we could do on that end, but we're getting down to a point where, we've got another 20 to 30 stations to get to our goal of the 250 and It's not necessary that we get that done, in two months or three months or four months, it's a kind of a high class problem to be in a position where we are because we have a pretty substantial amount of capacity.

And there's been certain things that have slowed us down just from a pandemic perspective, finding, rigging units and getting everything on time from a labor perspective and making sure the various parties show up. Because there have been certain entities that have slowed down but, we're way ahead a plan on that perspective and we could slow it down accordingly, if need be, but at this point, there's no cause for concern there.

Sarkis Sherbetchyan

Okay. Thanks for the color. Just moving on to the insurance division. I know you mentioned again kind of in advanced discussions, and it sounds like you granted the party exclusivity. How should investors interpret the context you gave? Advanced discussions exclusivity? I mean, why bother even disclose that if we can't really get much more of an update?

Philip Falcone

Well, I mean, it's what we can disclose. So obviously, we want to try to be as transparent as possible. We just thought that we would be asked the question and quite frankly, we wouldn't have extended exclusivity, if we didn't believe there was a deal to be done, you don't just extend exclusivity for the sake of it. So I