10/31/2024 | Press release | Distributed by Public on 10/31/2024 06:03
($ in millions, except per share amounts) | Q3 2024 | Q3 2023 | ||
Revenues | $ | 574 | $ | 597 |
Operating income/(loss) from continuing operations - GAAP | $ | 37 | $ | 29 |
Diluted EPS from continuing operations - GAAP | $ | (0.15) | $ | (0.12) |
Adjusted EBITDA - non-GAAP | $ | 85 | $ | 82 |
Adjusted EBITDA margin - non-GAAP | 14.8 | % | 13.7 | % |
Adjusted diluted EPS from continuing operations - non-GAAP | $ | (0.01) | $ | 0.08 |
($ in millions) | Q3 2024 | Q3 2023 | ||
Revenues | $ | 279 | $ | 286 |
Operating income (loss) - GAAP | $ | 33 | $ | 18 |
Adjusted EBITDA - non-GAAP | $ | 53 | $ | 54 |
Adjusted EBITDA margin - non-GAAP | 19.0 | % | 18.9 | % |
($ in millions) | Q3 2024 | Q3 2023 | ||
Revenues | $ | 237 | $ | 239 |
Operating income (loss) - GAAP | $ | 27 | $ | 21 |
Adjusted EBITDA - non-GAAP | $ | 42 | $ | 34 |
Adjusted EBITDA margin - non-GAAP | 17.5 | % | 14.2 | % |
($ in millions) | Q3 2024 | Q3 2023 | ||
Revenues | $ | 58 | $ | 72 |
Operating income (loss) - GAAP | $ | (14) | $ | (1) |
Adjusted EBITDA - non-GAAP | $ | (2) | $ | 2 |
Adjusted EBITDA margin - non-GAAP | (4.3) | % | 2.6 | % |
2024 Full Year Outlook | Current | Prior |
GAAP Operating Income | $117 - $127 million | $128 - $141 million |
Adjusted EBITDA | $317 - $327 million | $327 - $340 million |
GAAP Diluted Earnings/(Loss) Per Share from Continuing Operations | $(0.61) - $(0.72) | $(0.42) - $(0.58) |
Adjusted Diluted Earnings/(Loss) Per Share from Continuing Operations | $(0.06) - $(0.16) | $0.07 - $(0.09) |
Adjusted Free Cash Flow | $0 - $(20) million | $10 - $30 million |
Net Interest Expense, Excluding Any Unusual Items | $108 million | $108 - $111 million |
Account Receivable Securitization Fees | $11 million | $11 million |
Pension Expense (Non-Operating) | $17 million | $17 million |
Tax Expense, Excluding Any Unusual Items | $32 - $34 million | $31 - $34 million |
Net Capital Expenditures | $120 - $125 million | $130 - $140 million |
Q4 2024 Outlook | ||
GAAP Operating Income | $23 - $33 million | |
Adjusted EBITDA | $68 - $78 million | |
GAAP Diluted Earnings/(Loss) Per Share from Continuing Operations | $(0.09) - $(0.20) | |
Adjusted Diluted Earnings/(Loss) Per Share from Continuing Operations | $(0.03) - $(0.14) |
ENVIRI CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
|
|||||||||
Three Months Ended | Nine Months Ended | ||||||||
September 30 | September 30 | ||||||||
(In thousands, except per share amounts) | 2024 | 2023 | 2024 | 2023 | |||||
Revenues from continuing operations: | |||||||||
Service revenues | $ | 488,132 | $ | 490,791 | $ | 1,492,569 | $ | 1,434,314 | |
Product revenues | 85,495 | 106,177 | 291,368 | 332,375 | |||||
Total revenues | 573,627 | 596,968 | 1,783,937 | 1,766,689 | |||||
Costs and expenses from continuing operations: | |||||||||
Cost of services sold | 373,924 | 377,539 | 1,154,998 | 1,120,578 | |||||
Cost of products sold | 80,821 | 93,389 | 258,227 | 277,086 | |||||
Selling, general and administrative expenses | 89,183 | 93,513 | 266,763 | 262,175 | |||||
Research and development expenses | 888 | 902 | 2,692 | 2,441 | |||||
Property, plant and equipment impairment charge | - | - | - | 14,099 | |||||
Remeasurement of long-lived assets | - | - | 10,695 | - | |||||
Gain on sale of businesses, net | (8,601) | - | (10,478) | - | |||||
Other expense (income), net | 40 | 2,865 | 6,600 | (4,052) | |||||
Total costs and expenses | 536,255 | 568,208 | 1,689,497 | 1,672,327 | |||||
Operating income (loss) from continuing operations | 37,372 | 28,760 | 94,440 | 94,362 | |||||
Interest income | 981 | 1,722 | 6,113 | 4,796 | |||||
Interest expense | (28,813) | (27,552) | (84,869) | (78,956) | |||||
Facility fees and debt-related income (expense) | (2,978) | (2,806) | (8,687) | (7,899) | |||||
Defined benefit pension income (expense) | (4,257) | (5,430) | (12,599) | (16,159) | |||||
Income (loss) from continuing operations before income taxes and equity income | 2,305 | (5,306) | (5,602) | (3,856) | |||||
Income tax benefit (expense) from continuing operations | (13,437) | (3,498) | (31,372) | (26,846) | |||||
Equity income (loss) of unconsolidated entities, net | 38 | (151) | (84) | (593) | |||||
Income (loss) from continuing operations | (11,094) | (8,955) | (37,058) | (31,295) | |||||
Discontinued operations: | |||||||||
Income (loss) from discontinued businesses | (1,584) | (1,538) | (4,287) | (4,358) | |||||
Income tax benefit (expense) from discontinued businesses | 411 | 399 | 1,112 | 1,131 | |||||
Income (loss) from discontinued operations, net of tax | (1,173) | (1,139) | (3,175) | (3,227) | |||||
Net income (loss) | (12,267) | (10,094) | (40,233) | (34,522) | |||||
Less: Net loss (income) attributable to noncontrolling interests | (901) | (708) | (4,498) | 2,756 | |||||
Net income (loss) attributable to Enviri Corporation | $ | (13,168) | $ | (10,802) | $ | (44,731) | $ | (31,766) | |
Amounts attributable to Enviri Corporation common stockholders: | |||||||||
Income (loss) from continuing operations, net of tax | $ | (11,995) | $ | (9,663) | $ | (41,556) | $ | (28,539) | |
Income (loss) from discontinued operations, net of tax | (1,173) | (1,139) | (3,175) | (3,227) | |||||
Net income (loss) attributable to Enviri Corporation common stockholders | $ | (13,168) | $ | (10,802) | $ | (44,731) | $ | (31,766) | |
Weighted-average shares of common stock outstanding | 80,165 | 79,850 | 80,085 | 79,767 | |||||
Basic earnings (loss) per common share attributable to Enviri Corporation common stockholders: | |||||||||
Continuing operations | $ | (0.15) | $ | (0.12) | $ | (0.52) | $ | (0.36) | |
Discontinued operations | $ | (0.01) | $ | (0.01) | (0.04) | (0.04) | |||
Basic earnings (loss) per share attributable to Enviri Corporation common stockholders | $ | (0.16) | $ | (0.14) | (a) | $ | (0.56) | $ | (0.40) |
Diluted weighted-average shares of common stock outstanding | 80,165 | 79,850 | 80,085 | 79,767 | |||||
Diluted earnings (loss) per common share attributable to Enviri Corporation common stockholders: | |||||||||
Continuing operations | $ | (0.15) | $ | (0.12) | $ | (0.52) | $ | (0.36) | |
Discontinued operations | $ | (0.01) | $ | (0.01) | (0.04) | (0.04) | |||
Diluted earnings (loss) per share attributable to Enviri Corporation common stockholders | $ | (0.16) | $ | (0.14) | (a) | $ | (0.56) | $ | (0.40) |
ENVIRI CORPORATION
CONSOLIDATED BALANCE SHEETS
|
||||
(In thousands) |
September 30 2024 |
December 31 2023 |
||
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | $ | 110,243 | $ | 121,239 |
Restricted cash | 2,889 | 3,375 | ||
Trade accounts receivable, net | 318,906 | 338,187 | ||
Other receivables | 42,960 | 40,565 | ||
Inventories | 196,189 | 189,369 | ||
Current portion of contract assets | 64,190 | 64,875 | ||
Prepaid expenses
|
63,818 | 58,723 | ||
Other current assets | 6,969 | 11,023 | ||
Total current assets | 806,164 | 827,356 | ||
Property, plant and equipment, net | 698,315 | 707,397 | ||
Right-of-use assets, net
|
95,710 | 102,891 | ||
Goodwill | 767,076 | 780,978 | ||
Intangible assets, net | 305,633 | 327,983 | ||
Deferred income tax assets | 16,495 | 16,295 | ||
Other assets | 112,682 | 91,798 | ||
Total assets | $ | 2,802,075 | $ | 2,854,698 |
LIABILITIES | ||||
Current liabilities: | ||||
Short-term borrowings | $ | 14,357 | $ | 14,871 |
Current maturities of long-term debt | 17,952 | 15,558 | ||
Accounts payable | 245,996 | 243,279 | ||
Accrued compensation | 65,414 | 79,609 | ||
Income taxes payable | 8,952 | 7,567 | ||
Reserve for forward losses on contracts | 53,513 | 52,919 | ||
Current portion of advances on contracts | 16,838 | 38,313 | ||
Current portion of operating lease liabilities
|
27,381 | 28,775 | ||
Other current liabilities | 168,676 | 174,342 | ||
Total current liabilities | 619,079 | 655,233 | ||
Long-term debt | 1,431,868 | 1,401,437 | ||
Retirement plan liabilities | 39,900 | 45,087 | ||
Operating lease liabilities
|
69,977 | 75,476 | ||
Environmental liabilities | 22,959 | 25,682 | ||
Deferred tax liabilities | 31,749 | 29,160 | ||
Other liabilities | 60,664 | 47,215 | ||
Total liabilities | 2,276,196 | 2,279,290 | ||
ENVIRI CORPORATION STOCKHOLDERS' EQUITY | ||||
Common stock | 146,706 | 146,105 | ||
Additional paid-in capital | 250,855 | 238,416 | ||
Accumulated other comprehensive loss | (545,620) | (539,694) | ||
Retained earnings | 1,483,589 | 1,528,320 | ||
Treasury stock | (851,541) | (849,996) | ||
Total Enviri Corporation stockholders' equity | 483,989 | 523,151 | ||
Noncontrolling interests | 41,890 | 52,257 | ||
Total equity | 525,879 | 575,408 | ||
Total liabilities and equity | $ | 2,802,075 | $ | 2,854,698 |
ENVIRI CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
|
||||||||
Three Months Ended September 30
|
Nine Months Ended September 30
|
|||||||
(In thousands) | 2024 | 2023 | 2024 | 2023 | ||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | (12,267) | $ | (10,094) | $ | (40,233) | $ | (34,522) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Depreciation | 37,579 | 35,397 | 111,525 | 102,893 | ||||
Amortization | 7,909 | 8,295 | 24,089 | 24,327 | ||||
Deferred income tax (benefit) expense | (137) | (4,899) | 5,634 | 3,946 | ||||
Equity (income) loss of unconsolidated entities, net | (38) | 151 | 84 | 593 | ||||
Dividends from unconsolidated entities | 204 | - | 204 | - | ||||
Property, plant and equipment impairment charge | - | - | - | 14,099 | ||||
Remeasurement of long-lived assets | - | - | 10,695 | - | ||||
Gain on sale of businesses, net | (8,601) | - | (10,478) | - | ||||
Other, net | (917) | 597 | 1,928 | 4,743 | ||||
Changes in assets and liabilities, net of acquisitions and dispositions of businesses: | ||||||||
Accounts receivable | (14,402) | 8,244 | 3,231 | (48,175) | ||||
Inventories | (13,099) | (2,596) | (17,084) | (10,548) | ||||
Contract assets | (2,036) | 4,852 | (14,923) | 1,317 | ||||
Right-of-use assets | 7,493 | 8,256 | 23,687 | 24,467 | ||||
Accounts payable | 13,207 | (13,778) | 7,421 | (818) | ||||
Accrued interest payable | (5,077) | (6,636) | (5,092) | (6,828) | ||||
Accrued compensation | 9,132 | 11,242 | (13,412) | 20,436 | ||||
Advances on contracts | (3,325) | (8,846) | (10,446) | (21,824) | ||||
Operating lease liabilities | (7,465) | (8,190) | (23,341) | (22,980) | ||||
Retirement plan liabilities, net | (6,043) | 606 | (6,981) | (4,862) | ||||
Other assets and liabilities | (730) | (4,619) | (4,737) | (92) | ||||
Net cash (used) provided by operating activities | 1,387 | 17,982 | 41,771 | 46,172 | ||||
Cash flows from investing activities: | ||||||||
Purchases of property, plant and equipment | (41,574) | (27,289) | (102,094) | (93,630) | ||||
Proceeds from sale of businesses, net | 41,079 | - | 57,667 | - | ||||
Proceeds from sales of assets | 4,895 | 641 | 12,479 | 2,080 | ||||
Expenditures for intangible assets | (697) | (51) | (1,181) | (478) | ||||
Proceeds from note receivable | - | - | 17,023 | 11,238 | ||||
Net proceeds (payments) from settlement of foreign currency forward exchange contracts | (6,717) | 4,442 | (6,133) | 2,034 | ||||
Other investing activities, net | - | 378 | - | 462 | ||||
Net cash (used) provided by investing activities | (3,014) | (21,879) | (22,239) | (78,294) | ||||
Cash flows from financing activities: | ||||||||
Short-term borrowings, net | 156 | 3,595 | (2,982) | 4,196 | ||||
Current maturities and long-term debt: | ||||||||
Additions | 159,555 | 61,996 | 201,562 | 185,992 | ||||
Reductions | (146,274) | (49,795) | (200,584) | (140,522) | ||||
Contributions from noncontrolling interests | - | - | 874 | 1,654 | ||||
Dividends paid to noncontrolling interests | (3,413) | - | (15,964) | - | ||||
Stock-based compensation - Employee taxes paid | (214) | (136) | (1,546) | (1,374) | ||||
Deferred financing costs | (3,765) | - | (3,765) | - | ||||
Net cash (used) provided by financing activities | 6,045 | 15,660 | (22,405) | 49,946 | ||||
Effect of exchange rate changes on cash and cash equivalents, including restricted cash | 1,208 | (2,442) | (8,609) | (4,231) | ||||
Net increase (decrease) in cash and cash equivalents, including restricted cash | 5,626 | 9,321 | (11,482) | 13,593 | ||||
Cash and cash equivalents, including restricted cash, at beginning of period | 107,506 | 89,366 | 124,614 | 85,094 | ||||
Cash and cash equivalents, including restricted cash, at end of period | $ | 113,132 | $ | 98,687 | $ | 113,132 | $ | 98,687 |
ENVIRI CORPORATION
REVIEW OF OPERATIONS BY SEGMENT (Unaudited)
|
||||||||
Three Months Ended | ||||||||
September 30, 2024 | September 30, 2023 | |||||||
(In thousands) | Revenues |
Operating Income (Loss) |
Revenues | Operating Income (Loss) | ||||
Harsco Environmental | $ | 279,148 | $ | 33,181 | $ | 285,877 | $ | 17,867 |
Clean Earth | 236,791 | 26,833 | 238,711 | 21,497 | ||||
Harsco Rail | 57,688 | (14,101) | 72,380 | (999) | ||||
Corporate | - | (8,541) | - | (9,605) | ||||
Consolidated Totals | $ | 573,627 | $ | 37,372 | $ | 596,968 | $ | 28,760 |
Nine Months Ended | ||||||||
September 30, 2024 | September 30, 2023 | |||||||
(In thousands) | Revenues |
Operating Income (Loss) |
Revenues | Operating Income (Loss) | ||||
Harsco Environmental | $ | 871,196 | $ | 73,055 | $ | 848,659 | $ | 52,885 |
Clean Earth | 698,926 | 71,308 | 691,750 | 61,002 | ||||
Harsco Rail | 213,815 | (26,251) | 226,280 | 10,270 | ||||
Corporate | - | (23,672) | - | (29,795) | ||||
Consolidated Totals | $ | 1,783,937 | $ | 94,440 | $ | 1,766,689 | $ | 94,362 |
ENVIRI CORPORATION
RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS TO DILUTED EARNINGS (LOSS) PER SHARE FROM CONTINUING OPERATIONS AS REPORTED (Unaudited)
|
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Three Months Ended | Nine Months Ended | |||||||
September 30 | September 30 | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Diluted earnings (loss) per share from continuing operations, as reported | $ | (0.15) | $ | (0.12) | $ | (0.52) | $ | (0.36) |
Corporate strategic costs (a) | 0.01 | 0.03 | 0.03 | 0.05 | ||||
Corporate net gain on sale of assets (b) | - | - | (0.04) | - | ||||
Corporate contingent consideration adjustment (c) | - | (0.01) | - | (0.01) | ||||
Corporate gain on note receivable (d) | - | - | (0.03) | - | ||||
Harsco Environmental segment intangible asset impairment charge (e) | - | - | 0.04 | - | ||||
Harsco Environmental segment - severance costs (f) | - | 0.01 | - | 0.01 | ||||
Harsco Environmental segment net gain on lease incentive (g) | - | - | (0.01) | (0.12) | ||||
Harsco Environmental segment property, plant and equipment impairment charge, net of noncontrolling interest (h) | - | - | - | 0.10 | ||||
Harsco Environmental segment - accounts receivable provision (i) | - | 0.07 | - | 0.07 | ||||
Harsco Environmental segment and Corporate net gain on sale of businesses (j) | (0.11) | - | (0.13) | - | ||||
Harsco Rail segment remeasurement of long-lived assets (k) | - | - | 0.13 | - | ||||
Harsco Rail segment severance cost adjustment (l) | - | - | - | (0.01) | ||||
Harsco Rail segment provision for forward losses on certain contracts (m) | 0.13 | 0.04 | 0.25 | (0.05) | ||||
Taxes on above unusual items (n) | 0.04 | - | 0.05 | 0.13 | ||||
Adjusted diluted earnings (loss) per share from continuing operations, including acquisition amortization expense | (0.07) | (p) | 0.01 | (p) | (0.23) | (p) | (0.18) | (p) |
Acquisition amortization expense, net of tax (o) | 0.06 | 0.07 | 0.20 | 0.21 | ||||
Adjusted diluted earnings (loss) per share from continuing operations | $ | (0.01) | $ | 0.08 | $ | (0.03) | $ | 0.03 |
ENVIRI CORPORATION
RECONCILIATION OF PROJECTED ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE FROM CONTINUING OPERATIONS TO DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS (Unaudited) |
|||||||||
Projected | |||||||||
Three Months Ending | Twelve Months Ending | ||||||||
December 31 | December 31 | ||||||||
2024 | 2024 | ||||||||
Low | High | Low | High | ||||||
Diluted earnings (loss) per share from continuing operations | $ | (0.20) | $ | (0.09) | $ | (0.72) | $ | (0.61) | |
Corporate strategic costs | - | - | 0.03 | 0.03 | |||||
Corporate net gain on sale of assets | - | - | (0.04) | (0.04) | |||||
Corporate gain from note receivable | - | - | (0.03) | (0.03) | |||||
Harsco Environmental segment adjustment to net gain on lease incentive | - | - | (0.01) | (0.01) | |||||
Harsco Environmental segment and Corporate net gain on sale of businesses | - | - | (0.13) | (0.13) | |||||
Harsco Environmental segment intangible asset impairment charge | - | - | 0.04 | 0.04 | |||||
Harsco Rail segment remeasurement of long-lived assets | - | - | 0.13 | 0.13 | |||||
Harsco Rail segment provision for forward losses on certain contracts | - | - | 0.25 | 0.25 | |||||
Taxes on above unusual items | - | - | 0.05 | 0.05 | |||||
Adjusted diluted earnings (loss) per share from continuing operations, including acquisition amortization expense | (0.20) | (0.09) | (0.43) | (0.32) | |||||
Estimated acquisition amortization expense, net of tax | 0.06 | 0.06 | 0.26 | 0.26 | |||||
Adjusted diluted earnings (loss) per share from continuing operations | $ | (0.14) | $ | (0.03) | $ | (0.16) | (a) | $ | (0.06) |
ENVIRI CORPORATION
RECONCILIATION OF ADJUSTED EBITDA BY SEGMENT TO OPERATING INCOME (LOSS), AS REPORTED, BY SEGMENT (Unaudited)
|
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(In thousands) |
Harsco Environmental |
Clean Earth | Harsco Rail | Corporate | Consolidated Totals | |||||
Three Months Ended September 30, 2024: | ||||||||||
Operating income (loss), as reported | $ | 33,181 | $ | 26,833 | $ | (14,101) | $ | (8,541) | $ | 37,372 |
Strategic costs | - | - | - | 1,178 | 1,178 | |||||
Net gain on sale of businesses | (8,152) | - | - | (449) | (8,601) | |||||
Provision for forward losses on certain contracts | - | - | 10,539 | - | 10,539 | |||||
Operating income (loss), excluding unusual items | 25,029 | 26,833 | (3,562) | (7,812) | 40,488 | |||||
Depreciation | 27,554 | 8,685 | 1,040 | 300 | 37,579 | |||||
Amortization | 532 | 5,991 | 68 | - | 6,591 | |||||
Adjusted EBITDA | $ | 53,115 | $ | 41,509 | $ | (2,454) | $ | (7,512) | $ | 84,658 |
Revenues, as reported | $ | 279,148 | $ | 236,791 | $ | 57,688 | $ | 573,627 | ||
Adjusted EBITDA margin (%) | 19.0 | % | 17.5 | % | (4.3) | % | 14.8 | % | ||
Three Months Ended September 30, 2023: | ||||||||||
Operating income (loss), as reported | 17,867 | 21,497 | (999) | (9,605) | 28,760 | |||||
Strategic costs | - | - | - | 2,044 | 2,044 | |||||
Corporate contingent consideration adjustments | - | - | - | (828) | (828) | |||||
Segment severance costs | 1,146 | - | - | - | 1,146 | |||||
Accounts receivable provision | 5,284 | - | - | - | 5,284 | |||||
Provision for forward losses on certain contracts | - | - | 2,857 | - | 2,857 | |||||
Operating income (loss), excluding unusual items | 24,297 | 21,497 | 1,858 | (8,389) | 39,263 | |||||
Depreciation | 28,793 | 6,054 | - | 550 | 35,397 | |||||
Amortization | 1,013 | 6,330 | - | - | 7,343 | |||||
Adjusted EBITDA | $ | 54,103 | $ | 33,881 | $ | 1,858 | $ | (7,839) | $ | 82,003 |
Revenues, as reported | $ | 285,877 | $ | 238,711 | $ | 72,380 | $ | 596,968 | ||
Adjusted EBITDA margin (%) | 18.9 | % | 14.2 | % | 2.6 | % | 13.7 | % |
ENVIRI CORPORATION
RECONCILIATION OF ADJUSTED EBITDA BY SEGMENT TO OPERATING INCOME (LOSS), AS REPORTED, BY SEGMENT (Unaudited)
|
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(In thousands) | Harsco Environmental | Clean Earth | Harsco Rail | Corporate | Consolidated Totals | |||||
Nine Months Ended September 30, 2024: | ||||||||||
Operating income (loss), as reported | $ | 73,055 | $ | 71,308 | $ | (26,251) | $ | (23,672) | $ | 94,440 |
Strategic costs | - | - | - | 2,653 | 2,653 | |||||
Net gain on sale of assets | - | - | - | (3,281) | (3,281) | |||||
Adjustment to net gain on lease incentive | (451) | - | - | - | (451) | |||||
Net gain on sale of businesses | (10,029) | - | - | (449) | (10,478) | |||||
Intangible asset impairment charge | 2,840 | - | - | - | 2,840 | |||||
Remeasurement of long-lived assets | - | - | 10,695 | - | - | 10,695 | ||||
Provision for forward losses on certain contracts | - | - | 19,919 | - | 19,919 | |||||
Operating income (loss), excluding unusual items | 65,415 | 71,308 | 4,363 | (24,749) | 116,337 | |||||
Depreciation | 83,793 | 24,347 | 2,424 | 961 | 111,525 | |||||
Amortization | 2,525 | 18,147 | 157 | - | 20,829 | |||||
Adjusted EBITDA | $ | 151,733 | $ | 113,802 | $ | 6,944 | $ | (23,788) | $ | 248,691 |
Revenues, as reported | $ | 871,196 | $ | 698,926 | $ | 213,815 | $ | 1,783,937 | ||
Adjusted EBITDA margin (%) | 17.4 | % | 16.3 | % | 3.2 | % | 13.9 | % | ||
Nine Months Ended September 30, 2023: | ||||||||||
Operating income (loss), as reported | $ | 52,885 | $ | 61,002 | 10,270 | $ | (29,795) | $ | 94,362 | |
Strategic costs | - | - | - | 4,381 | 4,381 | |||||
Corporate contingent consideration adjustment | - | - | - | (828) | (828) | |||||
Segment severance costs | 1,146 | - | (537) | - | 609 | |||||
Net gain on lease incentive | (9,782) | - | - | - | (9,782) | |||||
Property, plant and equipment impairment charge | 14,099 | - | - | - | 14,099 | |||||
Accounts receivable provision | 5,284 | - | - | - | 5,284 | |||||
Provision for forward losses on certain contracts | - | - | (4,175) | - | (4,175) | |||||
Operating income (loss), excluding unusual items | 63,632 | 61,002 | 5,558 | (26,242) | 103,950 | |||||
Depreciation | 84,707 | 16,528 | - | 1,658 | 102,893 | |||||
Amortization | 3,020 | 18,472 | - | - | 21,492 | |||||
Adjusted EBITDA | 151,359 | 96,002 | 5,558 | (24,584) | 228,335 | |||||
Revenues, as reported | $ | 848,659 | $ | 691,750 | $ | 226,280 | $ | 1,766,689 | ||
Adjusted EBITDA margin (%) | 17.8 | % | 13.9 | % | 2.5 | % | 12.9 | % |
ENVIRI CORPORATION
RECONCILIATION OF CONSOLIDATED ADJUSTED EBITDA TO CONSOLIDATED INCOME (LOSS) FROM CONTINUING OPERATIONS AS REPORTED (Unaudited)
|
||||
Three Months Ended September 30 | ||||
(In thousands) | 2024 | 2023 | ||
Consolidated income (loss) from continuing operations | $ | (11,094) | $ | (8,955) |
Add back (deduct): | ||||
Equity in (income) loss of unconsolidated entities, net | (38) | 151 | ||
Income tax expense (benefit) from continuing operations | 13,437 | 3,498 | ||
Defined benefit pension expense (income) | 4,257 | 5,430 | ||
Facility fees and debt-related expense (income) | 2,978 | 2,806 | ||
Interest expense | 28,813 | 27,552 | ||
Interest income | (981) | (1,722) | ||
Depreciation | 37,579 | 35,397 | ||
Amortization | 6,591 | 7,343 | ||
Unusual items: | ||||
Corporate strategic costs | 1,178 | 2,044 | ||
Corporate contingent consideration adjustment | - | (828) | ||
Harsco Environmental segment and Corporate net gain on sale of businesses | (8,601) | - | ||
Harsco Environmental segment severance costs | - | 1,146 | ||
Harsco Environmental segment accounts receivable provision | - | 5,284 | ||
Harsco Rail segment provision for forward losses on certain contracts | 10,539 | 2,857 | ||
Consolidated Adjusted EBITDA | $ | 84,658 | $ | 82,003 |
ENVIRI CORPORATION
RECONCILIATION OF ADJUSTED EBITDA TO CONSOLIDATED INCOME (LOSS) FROM CONTINUING OPERATIONS AS REPORTED (Unaudited)
|
||||
Nine Months Ended
September 30
|
||||
(In thousands) | 2024 | 2023 | ||
Consolidated income (loss) from continuing operations | $ | (37,058) | $ | (31,295) |
Add back (deduct): | ||||
Equity in (income) loss of unconsolidated entities, net | 84 | 593 | ||
Income tax expense (benefit) from continuing operations | 31,372 | 26,846 | ||
Defined benefit pension expense | 12,599 | 16,159 | ||
Facility fee and debt-related expense | 8,687 | 7,899 | ||
Interest expense | 84,869 | 78,956 | ||
Interest income | (6,113) | (4,796) | ||
Depreciation | 111,525 | 102,893 | ||
Amortization | 20,829 | 21,492 | ||
Unusual items: | ||||
Corporate strategic costs | 2,653 | 4,381 | ||
Corporate contingent consideration adjustment | - | (828) | ||
Corporate net gain on sale of assets | (3,281) | - | ||
Harsco Environmental segment and Corporate net gain on sale of businesses | (10,478) | - | ||
Harsco Environmental segment net gain on lease incentive | (451) | (9,782) | ||
Harsco Environmental segment intangible asset impairment charge | 2,840 | - | ||
Harsco Environmental segment property, plant and equipment impairment charge | - | 14,099 | ||
Harsco Environmental segment severance costs | - | 1,146 | ||
Harsco Environmental segment accounts receivable provision | - | 5,284 | ||
Harsco Rail segment severance costs | - | (537) | ||
Harsco Rail segment remeasurement of long-lived assets | 10,695 | - | ||
Harsco Rail segment provision for forward losses on certain contracts | 19,919 | (4,175) | ||
Adjusted EBITDA | $ | 248,691 | $ | 228,335 |
ENVIRI CORPORATION
RECONCILIATION OF PROJECTED CONSOLIDATED ADJUSTED EBITDA TO PROJECTED CONSOLIDATED INCOME FROM CONTINUING OPERATIONS
(Unaudited)
|
||||||||||||
Projected | Projected | |||||||||||
Three Months Ending | Twelve Months Ending | |||||||||||
December 31 | December 31 | |||||||||||
2024 | 2024 | |||||||||||
(In millions) | Low | High | Low | High | ||||||||
Consolidated loss from continuing operations | $ | (15) | $ | (7) | $ | (48) | $ | (39) | ||||
Add back (deduct): | ||||||||||||
Income tax expense (benefit) from continuing operations | 4 | 6 | 32 | 34 | ||||||||
Facility fees and debt-related (income) expense | 3 | 3 | 12 | 11 | ||||||||
Net interest | 27 | 26 | 105 | 105 | ||||||||
Defined benefit pension (income) expense | 5 | 4 | 17 | 17 | ||||||||
Depreciation and amortization | 45 | 45 | 178 | 178 | ||||||||
Unusual items: | ||||||||||||
Corporate strategic costs | - | - | 3 | 3 | ||||||||
Corporate net gain on sale of assets | - | - | (3) | (3) | ||||||||
Harsco Environmental segment adjustment to net gain on lease incentive | - | - | - | - | ||||||||
Harsco Environmental segment and Corporate net gain on sale of businesses | - | - | (10) | (10) | ||||||||
Harsco Environmental segment intangible asset impairment charge | - | - | 3 | 3 | ||||||||
Harsco Rail segment remeasurement of long-lived assets | - | - | 11 | 11 | ||||||||
Harsco Rail segment provision for forward losses on certain contracts | - | - | 20 | 20 | ||||||||
Consolidated Adjusted EBITDA | $ | 68 | (a) | $ | 78 | (a) | $ | 317 | (a) | $ | 327 | (a) |
ENVIRI CORPORATION
RECONCILIATION OF ADJUSTED FREE CASH FLOW TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES (Unaudited)
|
||||||||
Three Months Ended | Nine Months Ended | |||||||
September 30 | September 30 | |||||||
(In thousands) | 2024 | 2023 | 2024 | 2023 | ||||
Net cash provided (used) by operating activities | $ | 1,387 | $ | 17,982 | $ | 41,771 | $ | 46,172 |
Less capital expenditures | (41,574) | (27,289) | (102,094) | (93,630) | ||||
Less expenditures for intangible assets | (697) | (51) | (1,181) | (478) | ||||
Plus capital expenditures for strategic ventures (a) | 727 | 507 | 2,177 | 2,458 | ||||
Plus total proceeds from sales of assets (b) | 4,895 | 641 | 12,479 | 2,080 | ||||
Plus transaction-related expenditures (c) | 1,038 | 917 | 5,478 | 1,045 | ||||
Adjusted free cash flow | $ | (34,224) | $ | (7,293) | $ | (41,370) | $ | (42,353) |
ENVIRI CORPORATION
RECONCILIATION OF PROJECTED ADJUSTED FREE CASH FLOW TO PROJECTED NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES (Unaudited) |
||||
Projected Twelve Months Ending December 31 |
||||
2024 | ||||
(In millions) | Low | High | ||
Net cash provided by operating activities | $ | 91 | $ | 116 |
Less net capital / intangible asset expenditures | (120) | (125) | ||
Plus capital expenditures for strategic ventures | 4 | 4 | ||
Plus transaction-related expenditures | 5 | 5 | ||
Adjusted free cash flow | $ | (20) | $ | - |
ENVIRI CORPORATION
RECONCILIATION OF CHANGES IN REVENUES FROM ORGANIC GROWTH TO CHANGES IN REVENUES, AS REPORTED
(Unaudited)
|
|||
Three Months Ended | |||
(in millions) | Organic | Other | Total |
Total revenues - September 30, 2023
|
$ | 597.0 | |
Effects on revenues: | |||
Price/volume changes | 3.2 | - | 3.2 |
Foreign currency translation | - | (5.8) | (5.8) |
Harsco Environmental segment divestitures (a) | - | (15.4) | (15.4) |
Harsco Rail segment adjustments from estimated forward loss provisions on certain contracts (b) | - | (5.4) | (5.4) |
Total change | 3.2 | (26.6) | (23.4) |
Total revenues - September 30, 2024
|
$ | 573.6 | |
Total change % | 0.5% | (4.5)% | (3.9)% |
ENVIRI CORPORATION
HARSCO ENVIRONMENTAL SEGMENT
RECONCILIATION OF CHANGES IN REVENUES FROM ORGANIC GROWTH TO CHANGES IN REVENUES, AS REPORTED
(Unaudited)
|
|||
Three Months Ended | |||
(in millions) | Organic | Other | Total |
Harsco Environmental segment revenues - September 30, 2023
|
$ | 285.9 | |
Effects on revenues: | |||
Price/volume changes | 15.0 | - | 15.0 |
Foreign currency translation | - | (6.4) | (6.4) |
Divestitures (a) | - | (15.4) | (15.4) |
Total change | 15.0 | (21.8) | (6.8) |
Harsco Environmental segment revenues - September 30, 2024
|
$ | 279.1 | |
Total change % | 5.2% | (7.6)% | (2.4)% |