Revenue during the quarter surged 48.88 percent to $413.08 million from $277.47 million in the previous year period. Gross margin for the quarter expanded 585 basis points over the previous year period to 19.18 percent. Total expenses were 98.34 percent of quarterly revenues, down from 99.32 percent for the same period last year. This has led to an improvement of 98 basis points in operating margin to 1.66 percent.

Operating income for the quarter was $6.85 million, compared with $1.88 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $18.23 million compared with $14.23 million in the prior year period. At the same time, adjusted EBITDA margin contracted 72 basis points in the quarter to 4.41 percent from 5.13 percent in the last year period.

"The performance of all our core operating subsidiaries was again solid in the third quarter, with results up quarter-over-quarter and year-over-year across the board," said Philip Falcone, HC2's chairman, president and chief executive officer. "We are pleased with the performance of these diverse businesses, each of which continues to execute well. In particular, DBM Global (formerly Schuff International) finished a solid quarter, with a strong pipeline of business and continued expansion of its service offering, most recently through the acquisitions of PDC Global’s Detailing and Building Information Modeling business and BDS VirCom."

Debt moves up marginally
HC2 Holdings, Inc. has witnessed an increase in total debt over the last one year. It stood at $396.69 million as on Sep. 30, 2016, up 2.28 percent or $8.83 million from $387.86 million on Sep. 30, 2015. Total debt was 13.74 percent of total assets as on Sep. 30, 2016, compared with 50.70 percent on Sep. 30, 2015. Debt to equity ratio was at 2.22 as on Sep. 30, 2016, down from 4.72 as on Sep. 30, 2015. Interest coverage ratio improved to 0.64 for the quarter from 0.18 for the same period last year.