01/08/2024 | Press release | Distributed by Public on 01/08/2024 12:08
($ in millions, except per share amounts) | Q2 2024 | Q2 2023 | ||
Revenues | $ | 610 | $ | 609 |
Operating income/(loss) from continuing operations - GAAP | $ | 31 | $ | 34 |
Diluted EPS from continuing operations - GAAP | $ | (0.16) | $ | (0.13) |
Adjusted EBITDA - Non GAAP | $ | 86 | $ | 81 |
Adjusted EBITDA margin - Non GAAP | 14.1 | % | 13.2 | % |
Adjusted diluted EPS from continuing operations - Non GAAP | $ | 0.02 | $ | 0.05 |
($ in millions) | Q2 2024 | Q2 2023 | ||
Revenues | $ | 293 | $ | 290 |
Operating income (loss) - GAAP | $ | 20 | $ | 13 |
Adjusted EBITDA - Non GAAP | $ | 49 | $ | 53 |
Adjusted EBITDA margin - Non GAAP | 16.8 | % | 18.4 | % |
($ in millions) | Q2 2024 | Q2 2023 | ||
Revenues | $ | 236 | $ | 231 |
Operating income (loss) - GAAP | $ | 24 | $ | 23 |
Adjusted EBITDA - Non GAAP | $ | 38 | $ | 35 |
Adjusted EBITDA margin - Non GAAP | 16.1 | % | 15.0 | % |
($ in millions) | Q2 2024 | Q2 2023 | ||
Revenues | $ | 81 | $ | 89 |
Operating income (loss) - GAAP | $ | (3) | $ | 9 |
Adjusted EBITDA - Non GAAP | $ | 7 | $ | 2 |
Adjusted EBITDA margin - Non GAAP | 9.1 | % | 2.1 | % |
2024 Full Year Outlook | Current | Prior |
GAAP Operating Income | $128 - $141 million | $136 - $153 million |
Adjusted EBITDA | $327 - $340 million | $325 - $342 million |
GAAP Diluted Earnings/(Loss) Per Share from Continuing Operations | $(0.42) - $(0.58) | $(0.26) - $(0.47) |
Adjusted Diluted Earnings/(Loss) Per Share from Continuing Operations | $0.07 - $(0.09) | $0.12 - $(0.09) |
Adjusted Free Cash Flow | $10 - $30 million | $10 - $30 million |
Net Interest Expense, Excluding Any Unusual Items | $108 - $111 million | $106 - $111 million |
Account Receivable Securitization Fees | $11 million | $10 - $11 million |
Pension Expense (Non-Operating) | $17 million | $17 million |
Tax Expense, Excluding Any Unusual Items | $31 - $34 million | $28 - $33 million |
Net Capital Expenditures | $130 - $140 million | $130 - $140 million |
Q3 2024 Outlook | ||
GAAP Operating Income | $39 - $46 million | |
Adjusted EBITDA | $85 - $92 million | |
GAAP Diluted Earnings/(Loss) Per Share from Continuing Operations | $0.02 - $(0.06) | |
Adjusted Diluted Earnings/(Loss) Per Share from Continuing Operations | $0.01 - $0.08 |
ENVIRI CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
|
||||||||||
Three Months Ended | Six Months Ended | |||||||||
June 30 | June 30 | |||||||||
(In thousands, except per share amounts) | 2024 | 2023 | 2024 | 2023 | ||||||
Revenues from continuing operations: | ||||||||||
Service revenues | $ | 505,283 | $ | 481,963 | $ | 1,004,437 | $ | 943,523 | ||
Product revenues | 104,710 | 127,053 | 205,873 | 226,198 | ||||||
Total revenues | 609,993 | 609,016 | 1,210,310 | 1,169,721 | ||||||
Costs and expenses from continuing operations: | ||||||||||
Cost of services sold | 388,222 | 373,531 | 781,074 | 743,039 | ||||||
Cost of products sold | 91,996 | 101,148 | 177,406 | 183,697 | ||||||
Selling, general and administrative expenses | 90,454 | 86,801 | 177,580 | 168,662 | ||||||
Research and development expenses | 943 | 1,019 | 1,804 | 1,539 | ||||||
Property, plant and equipment impairment charge | - | 14,099 | - | 14,099 | ||||||
Remeasurement of long-lived assets | - | - | 10,695 | - | ||||||
Other expense (income), net | 7,123 | (1,269) | 4,683 | (6,917) | ||||||
Total costs and expenses | 578,738 | 575,329 | 1,153,242 | 1,104,119 | ||||||
Operating income (loss) from continuing operations | 31,255 | 33,687 | 57,068 | 65,602 | ||||||
Interest income | 3,435 | 1,594 | 5,132 | 3,074 | ||||||
Interest expense | (27,934) | (26,409) | (56,056) | (51,404) | ||||||
Facility fees and debt-related income (expense) | (2,920) | (2,730) | (5,709) | (5,093) | ||||||
Defined benefit pension income (expense) | (4,166) | (5,400) | (8,342) | (10,729) | ||||||
Income (loss) from continuing operations before income taxes and equity income | (330) | 742 | (7,907) | 1,450 | ||||||
Income tax benefit (expense) from continuing operations | (10,020) | (15,331) | (17,935) | (23,348) | ||||||
Equity income (loss) of unconsolidated entities, net | 127 | (309) | (122) | (442) | ||||||
Income (loss) from continuing operations | (10,223) | (14,898) | (25,964) | (22,340) | ||||||
Discontinued operations: | ||||||||||
Income (loss) from discontinued businesses | (1,211) | (1,165) | (2,703) | (2,820) | ||||||
Income tax benefit (expense) from discontinued businesses | 314 | 225 | 701 | 732 | ||||||
Income (loss) from discontinued operations, net of tax | (897) | (940) | (2,002) | (2,088) | ||||||
Net income (loss) | (11,120) | (15,838) | (27,966) | (24,428) | ||||||
Less: Net loss (income) attributable to noncontrolling interests | (2,481) | 4,399 | (3,597) | 3,464 | ||||||
Net income (loss) attributable to Enviri Corporation | $ | (13,601) | $ | (11,439) | $ | (31,563) | $ | (20,964) | ||
Amounts attributable to Enviri Corporation common stockholders: | ||||||||||
Income (loss) from continuing operations, net of tax | $ | (12,704) | $ | (10,499) | $ | (29,561) | $ | (18,876) | ||
Income (loss) from discontinued operations, net of tax | (897) | (940) | (2,002) | (2,088) | ||||||
Net income (loss) attributable to Enviri Corporation common stockholders | $ | (13,601) | $ | (11,439) | $ | (31,563) | $ | (20,964) | ||
Weighted-average shares of common stock outstanding | 80,146 | 79,816 | 80,045 | 79,725 | ||||||
Basic earnings (loss) per common share attributable to Enviri Corporation common stockholders: | ||||||||||
Continuing operations | $ | (0.16) | $ | (0.13) | $ | (0.37) | $ | (0.24) | ||
Discontinued operations | $ | (0.01) | $ | (0.01) | (0.03) | (0.03) | ||||
Basic earnings (loss) per share attributable to Enviri Corporation common stockholders | $ | (0.17) | $ | (0.14) | $ | (0.39) | (a) | $ | (0.26) | (a) |
Diluted weighted-average shares of common stock outstanding | 80,146 | 79,816 | 80,045 | 79,725 | ||||||
Diluted earnings (loss) per common share attributable to Enviri Corporation common stockholders: | ||||||||||
Continuing operations | $ | (0.16) | $ | (0.13) | $ | (0.37) | $ | (0.24) | ||
Discontinued operations | $ | (0.01) | $ | (0.01) | (0.03) | (0.03) | ||||
Diluted earnings (loss) per share attributable to Enviri Corporation common stockholders | $ | (0.17) | $ | (0.14) | $ | (0.39) | (a) | $ | (0.26) | (a) |
ENVIRI CORPORATION
CONSOLIDATED BALANCE SHEETS
|
||||
(In thousands) |
June 30 2024 |
December 31 2023 |
||
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | $ | 104,044 | $ | 121,239 |
Restricted cash | 3,462 | 3,375 | ||
Trade accounts receivable, net | 313,193 | 338,187 | ||
Other receivables | 37,101 | 40,565 | ||
Inventories | 188,503 | 189,369 | ||
Current portion of contract assets | 70,067 | 64,875 | ||
Prepaid expenses
|
50,637 | 58,723 | ||
Other current assets | 16,232 | 11,023 | ||
Total current assets | 783,239 | 827,356 | ||
Property, plant and equipment, net | 692,416 | 707,397 | ||
Right-of-use assets, net
|
101,281 | 102,891 | ||
Goodwill | 770,858 | 780,978 | ||
Intangible assets, net | 310,086 | 327,983 | ||
Deferred income tax assets | 15,338 | 16,295 | ||
Other assets | 95,449 | 91,798 | ||
Total assets | $ | 2,768,667 | $ | 2,854,698 |
LIABILITIES | ||||
Current liabilities: | ||||
Short-term borrowings | $ | 7,422 | $ | 14,871 |
Current maturities of long-term debt | 17,752 | 15,558 | ||
Accounts payable | 231,384 | 243,279 | ||
Accrued compensation | 55,444 | 79,609 | ||
Income taxes payable | 2,178 | 7,567 | ||
Reserve for forward losses on contracts | 50,092 | 52,919 | ||
Current portion of advances on contracts | 30,278 | 38,313 | ||
Current portion of operating lease liabilities
|
28,530 | 28,775 | ||
Other current liabilities | 170,807 | 174,342 | ||
Total current liabilities | 593,887 | 655,233 | ||
Long-term debt | 1,417,776 | 1,401,437 | ||
Retirement plan liabilities | 44,616 | 45,087 | ||
Operating lease liabilities
|
74,403 | 75,476 | ||
Environmental liabilities | 24,540 | 25,682 | ||
Deferred tax liabilities | 35,824 | 29,160 | ||
Other liabilities | 48,823 | 47,215 | ||
Total liabilities | 2,239,869 | 2,279,290 | ||
ENVIRI CORPORATION STOCKHOLDERS' EQUITY | ||||
Common stock | 146,651 | 146,105 | ||
Additional paid-in capital | 246,133 | 238,416 | ||
Accumulated other comprehensive loss | (552,548) | (539,694) | ||
Retained earnings | 1,496,757 | 1,528,320 | ||
Treasury stock | (851,327) | (849,996) | ||
Total Enviri Corporation stockholders' equity | 485,666 | 523,151 | ||
Noncontrolling interests | 43,132 | 52,257 | ||
Total equity | 528,798 | 575,408 | ||
Total liabilities and equity | $ | 2,768,667 | $ | 2,854,698 |
ENVIRI CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
|
||||||||
Three Months Ended June 30
|
Six Months Ended June 30
|
|||||||
(In thousands) | 2024 | 2023 | 2024 | 2023 | ||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | (11,120) | $ | (15,838) | $ | (27,966) | $ | (24,428) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Depreciation | 37,026 | 34,457 | 73,946 | 67,496 | ||||
Amortization | 8,006 | 8,067 | 16,180 | 16,032 | ||||
Deferred income tax (benefit) expense | 2,326 | 7,678 | 5,771 | 7,622 | ||||
Equity (income) loss of unconsolidated entities, net | (127) | 309 | 122 | 442 | ||||
Property, plant and equipment impairment charge | - | 14,099 | - | 14,099 | ||||
Remeasurement of long-lived assets | - | - | 10,695 | - | ||||
Other, net | 196 | 3,137 | 968 | 4,146 | ||||
Changes in assets and liabilities, net of acquisitions and dispositions of businesses: | ||||||||
Accounts receivable | (6,793) | (41,850) | 17,633 | (56,383) | ||||
Inventories | 1,312 | 582 | (3,985) | (7,952) | ||||
Contract assets | (3,688) | (15,233) | (12,887) | (3,535) | ||||
Right-of-use assets | 7,595 | 8,369 | 16,194 | 16,211 | ||||
Accounts payable | 7,965 | (4,775) | (5,786) | 12,960 | ||||
Accrued interest payable | 6,805 | 6,806 | (15) | (192) | ||||
Accrued compensation | 2,987 | 1,851 | (22,544) | 9,194 | ||||
Advances on contracts | (5,503) | (7,387) | (7,121) | (12,978) | ||||
Operating lease liabilities | (7,664) | (7,588) | (15,876) | (14,790) | ||||
Retirement plan liabilities, net | (598) | (6,282) | (938) | (5,468) | ||||
Other assets and liabilities | 311 | 4,876 | (4,007) | 5,714 | ||||
Net cash (used) provided by operating activities | 39,036 | (8,722) | 40,384 | 28,190 | ||||
Cash flows from investing activities: | ||||||||
Purchases of property, plant and equipment | (33,639) | (44,195) | (60,520) | (66,341) | ||||
Proceeds from sale of businesses, net | 16,588 | - | 16,588 | - | ||||
Proceeds from sales of assets | 3,271 | 616 | 7,584 | 1,439 | ||||
Expenditures for intangible assets | (407) | (391) | (484) | (427) | ||||
Proceeds from note receivable | 17,023 | 11,238 | 17,023 | 11,238 | ||||
Net proceeds (payments) from settlement of foreign currency forward exchange contracts | 1,186 | (1,196) | 584 | (2,408) | ||||
Other investing activities, net | (1) | 52 | - | 84 | ||||
Net cash (used) provided by investing activities | 4,021 | (33,876) | (19,225) | (56,415) | ||||
Cash flows from financing activities: | ||||||||
Short-term borrowings, net | 5,865 | 3,630 | (3,138) | 601 | ||||
Current maturities and long-term debt: | ||||||||
Additions | 6,684 | 64,996 | 42,007 | 123,996 | ||||
Reductions | (49,343) | (33,527) | (54,310) | (90,727) | ||||
Contributions from noncontrolling interests | - | 1,654 | 874 | 1,654 | ||||
Dividends paid to noncontrolling interests | (4,308) | - | (12,551) | - | ||||
Stock-based compensation - Employee taxes paid | (292) | (308) | (1,332) | (1,238) | ||||
Other financing activities, net | 1 | - | - | - | ||||
Net cash (used) provided by financing activities | (41,393) | 36,445 | (28,450) | 34,286 | ||||
Effect of exchange rate changes on cash and cash equivalents, including restricted cash | (1,566) | (717) | (9,817) | (1,789) | ||||
Net increase (decrease) in cash and cash equivalents, including restricted cash | 98 | (6,870) | (17,108) | 4,272 | ||||
Cash and cash equivalents, including restricted cash, at beginning of period | 107,408 | 96,236 | 124,614 | 85,094 | ||||
Cash and cash equivalents, including restricted cash, at end of period | $ | 107,506 | $ | 89,366 | $ | 107,506 | $ | 89,366 |
ENVIRI CORPORATION
REVIEW OF OPERATIONS BY SEGMENT (Unaudited)
|
||||||||
Three Months Ended | ||||||||
June 30, 2024 | June 30, 2023 | |||||||
(In thousands) | Revenues |
Operating Income (Loss) |
Revenues | Operating Income (Loss) | ||||
Harsco Environmental | $ | 292,929 | $ | 20,286 | $ | 289,593 | $ | 12,733 |
Clean Earth | 236,105 | 23,882 | 230,575 | 23,034 | ||||
Harsco Rail | 80,959 | (3,089) | 88,848 | 8,924 | ||||
Corporate | - | (9,824) | - | (11,004) | ||||
Consolidated Totals | $ | 609,993 | $ | 31,255 | $ | 609,016 | $ | 33,687 |
Six Months Ended | ||||||||
June 30, 2024 | June 30, 2023 | |||||||
(In thousands) | Revenues |
Operating Income (Loss) |
Revenues | Operating Income (Loss) | ||||
Harsco Environmental | $ | 592,048 | $ | 39,874 | $ | 562,782 | $ | 35,018 |
Clean Earth | 462,135 | 44,475 | 453,039 | 39,505 | ||||
Harsco Rail | 156,127 | (12,150) | 153,900 | 11,269 | ||||
Corporate | - | (15,131) | - | (20,190) | ||||
Consolidated Totals | $ | 1,210,310 | $ | 57,068 | $ | 1,169,721 | $ | 65,602 |
ENVIRI CORPORATION
RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS TO DILUTED EARNINGS (LOSS) PER SHARE FROM CONTINUING OPERATIONS AS REPORTED (Unaudited)
|
||||||||
Three Months Ended | Six Months Ended | |||||||
June 30 | June 30 | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Diluted earnings (loss) per share from continuing operations, as reported | $ | (0.16) | $ | (0.13) | $ | (0.37) | $ | (0.24) |
Corporate strategic costs (a) | 0.01 | 0.02 | 0.02 | 0.03 | ||||
Corporate net gain on sale of assets (b) | - | - | (0.04) | - | ||||
Corporate gain on note receivable (c) | (0.03) | - | (0.03) | - | ||||
Harsco Environmental segment intangible asset impairment charge (d) | 0.04 | - | 0.04 | - | ||||
Harsco Environmental segment net gain on lease incentive (e) | (0.01) | (0.04) | (0.01) | (0.12) | ||||
Harsco Environmental segment property, plant and equipment impairment charge, net of noncontrolling interest (f) | - | 0.10 | - | 0.10 | ||||
Harsco Environmental net gain on sale of business (g) | (0.02) | - | (0.02) | - | ||||
Harsco Rail segment remeasurement of long-lived assets (h) | - | - | 0.13 | - | ||||
Harsco Rail segment severance cost adjustment (i) | - | - | - | (0.01) | ||||
Harsco Rail segment provision for forward losses on certain contracts (j) | 0.12 | (0.09) | 0.12 | (0.09) | ||||
Taxes on above unusual items (k) | 0.01 | 0.12 | 0.02 | 0.14 | ||||
Adjusted diluted earnings (loss) per share from continuing operations, including acquisition amortization expense | (0.05) | (m) | (0.02) | (0.15) | (m) | (0.19) | ||
Acquisition amortization expense, net of tax (l) | 0.07 | 0.07 | 0.14 | 0.14 | ||||
Adjusted diluted earnings (loss) per share from continuing operations | $ | 0.02 | $ | 0.05 | $ | (0.01) | $ | (0.05) |
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 | ||||||||
September 30 | December 31 | ||||||||
2024 | 2024 | ||||||||
Low | High | Low | High | ||||||
Diluted earnings (loss) per share from continuing operations | $ | (0.06) | $ | 0.02 | $ | (0.58) | $ | (0.42) | |
Corporate strategic costs | - | - | 0.02 | 0.02 | |||||
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 net gain on sale of business | - | - | (0.02) | (0.02) | |||||
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 | - | - | 0.12 | 0.12 | |||||
Taxes on above unusual items | - | - | 0.02 | 0.02 | |||||
Adjusted diluted earnings (loss) per share from continuing operations, including acquisition amortization expense | (0.06) | 0.02 | (0.35) | (0.19) | |||||
Estimated acquisition amortization expense, net of tax | 0.06 | 0.06 | 0.26 | 0.26 | |||||
Adjusted diluted earnings (loss) per share from continuing operations | $ | 0.01 | (a) | $ | 0.08 | $ | (0.09) | $ | 0.07 |
ENVIRI CORPORATION
RECONCILIATION OF ADJUSTED EBITDA BY SEGMENT TO OPERATING INCOME (LOSS), AS REPORTED, BY SEGMENT (Unaudited)
|
||||||||||
(In thousands) |
Harsco Environmental |
Clean Earth | Harsco Rail | Corporate | Consolidated Totals | |||||
Three Months Ended June 30, 2024: | ||||||||||
Operating income (loss), as reported | $ | 20,286 | $ | 23,882 | $ | (3,089) | $ | (9,824) | $ | 31,255 |
Strategic costs | - | - | - | 794 | 794 | |||||
Adjustment to net gain on lease incentive | (451) | - | - | - | (451) | |||||
Net gain on sale of business | (1,877) | - | - | - | (1,877) | |||||
Intangible asset impairment charge | 2,840 | - | - | - | 2,840 | |||||
Provision for forward losses on certain contracts | - | - | 9,380 | - | 9,380 | |||||
Operating income (loss), excluding unusual items | 20,798 | 23,882 | 6,291 | (9,030) | 41,941 | |||||
Depreciation | 27,450 | 8,249 | 1,023 | 304 | 37,026 | |||||
Amortization | 975 | 5,989 | 67 | - | 7,031 | |||||
Adjusted EBITDA | $ | 49,223 | $ | 38,120 | $ | 7,381 | $ | (8,726) | $ | 85,998 |
Revenues, as reported | $ | 292,929 | $ | 236,105 | $ | 80,959 | $ | 609,993 | ||
Adjusted EBITDA margin (%) | 16.8 | % | 16.1 | % | 9.1 | % | 14.1 | % | ||
Three Months Ended June 30, 2023: | ||||||||||
Operating income (loss), as reported | $ | 12,733 | $ | 23,034 | $ | 8,924 | $ | (11,004) | $ | 33,687 |
Strategic costs | - | - | - | 1,291 | 1,291 | |||||
Corporate contingent consideration adjustments | - | - | - | - | 0 | |||||
Net gain on lease incentive | (3,000) | - | - | - | (3,000) | |||||
Property, plant and equipment impairment charge | 14,099 | - | - | - | 14,099 | |||||
Provision for forward losses on certain contracts | - | - | (7,032) | - | (7,032) | |||||
Operating income (loss), excluding unusual items | 23,832 | 23,034 | 1,892 | (9,713) | 39,045 | |||||
Depreciation | 28,354 | 5,547 | - | 556 | 34,457 | |||||
Amortization | 1,008 | 6,113 | - | - | 7,121 | |||||
Adjusted EBITDA | $ | 53,194 | $ | 34,694 | $ | 1,892 | $ | (9,157) | $ | 80,623 |
Revenues, as reported | $ | 289,593 | $ | 230,575 | $ | 88,848 | $ | 609,016 | ||
Adjusted EBITDA margin (%) | 18.4 | % | 15.0 | % | 2.1 | % | 13.2 | % |
ENVIRI CORPORATION
RECONCILIATION OF ADJUSTED EBITDA BY SEGMENT TO OPERATING INCOME (LOSS), AS REPORTED, BY SEGMENT (Unaudited)
|
||||||||||
(In thousands) | Harsco Environmental | Clean Earth | Harsco Rail | Corporate | Consolidated Totals | |||||
Six Months Ended June 30, 2024: | ||||||||||
Operating income (loss), as reported | $ | 39,874 | $ | 44,475 | $ | (12,150) | $ | (15,131) | $ | 57,068 |
Strategic costs | - | - | - | 1,475 | 1,475 | |||||
Net gain on sale of assets | - | - | - | (3,281) | (3,281) | |||||
Adjustment to net gain on lease incentive | (451) | - | - | - | (451) | |||||
Net gain on sale of business | (1,877) | - | - | - | (1,877) | |||||
Intangible asset impairment charge | 2,840 | - | - | - | 2,840 | |||||
Remeasurement of long-lived assets | - | - | 10,695 | - | - | 10,695 | ||||
Provision for forward losses on certain contracts | - | - | 9,380 | - | 9,380 | |||||
Operating income (loss), excluding unusual items | 40,386 | 44,475 | 7,925 | (16,937) | 75,849 | |||||
Depreciation | 56,239 | 15,662 | 1,384 | 661 | 73,946 | |||||
Amortization | 1,993 | 12,156 | 89 | - | 14,238 | |||||
Adjusted EBITDA | 98,618 | 72,293 | 9,398 | (16,276) | 164,033 | |||||
Revenues, as reported | $ | 592,048 | $ | 462,135 | $ | 156,127 | $ | 1,210,310 | ||
Adjusted EBITDA margin (%) | 16.7 | % | 15.6 | % | 6.0 | % | 13.6 | % | ||
Six Months Ended June 30, 2023: | ||||||||||
Operating income (loss), as reported | $ | 35,018 | $ | 39,505 | 11,269 | $ | (20,190) | $ | 65,602 | |
Strategic costs | - | - | - | 2,337 | 2,337 | |||||
Net gain on lease incentive | (9,782) | - | - | - | (9,782) | |||||
Property, plant and equipment impairment charge | 14,099 | - | - | - | 14,099 | |||||
Severance costs | - | - | (537) | - | (537) | |||||
Provision for forward losses on certain contracts | - | - | (7,032) | - | (7,032) | |||||
Operating income (loss), excluding unusual items | 39,335 | 39,505 | 3,700 | (17,853) | 64,687 | |||||
Depreciation | 55,914 | 10,474 | - | 1,108 | 67,496 | |||||
Amortization | 2,007 | 12,142 | - | - | 14,149 | |||||
Adjusted EBITDA | 97,256 | 62,121 | 3,700 | (16,745) | 146,332 | |||||
Revenues, as reported | $ | 562,782 | $ | 453,039 | $ | 153,900 | $ | 1,169,721 | ||
Adjusted EBITDA margin (%) | 17.3 | % | 13.7 | % | 2.4 | % | 12.5 | % |
ENVIRI CORPORATION
RECONCILIATION OF CONSOLIDATED ADJUSTED EBITDA TO CONSOLIDATED INCOME (LOSS) FROM CONTINUING OPERATIONS AS REPORTED (Unaudited)
|
||||
Three Months Ended June 30 | ||||
(In thousands) | 2024 | 2023 | ||
Consolidated income (loss) from continuing operations | $ | (10,223) | $ | (14,898) |
Add back (deduct): | ||||
Equity in (income) loss of unconsolidated entities, net | (127) | 309 | ||
Income tax (benefit) expense | 10,020 | 15,331 | ||
Defined benefit pension expense (income) | 4,166 | 5,400 | ||
Facility fees and debt-related expense (income) | 2,920 | 2,730 | ||
Interest expense | 27,934 | 26,409 | ||
Interest income | (3,435) | (1,594) | ||
Depreciation | 37,026 | 34,457 | ||
Amortization | 7,031 | 7,121 | ||
Unusual items: | ||||
Corporate strategic costs | 794 | 1,291 | ||
Harsco Environmental segment net gain on lease incentive | (451) | (3,000) | ||
Harsco Environmental segment property, plant and equipment impairment charge | - | 14,099 | ||
Harsco Environmental segment net gain on sale of business | (1,877) | - | ||
Harsco Environmental segment intangible asset impairment charge | 2,840 | - | ||
Harsco Rail segment provision for forward losses on certain contracts | 9,380 | (7,032) | ||
Consolidated Adjusted EBITDA | $ | 85,998 | $ | 80,623 |
ENVIRI CORPORATION
RECONCILIATION OF ADJUSTED EBITDA TO CONSOLIDATED INCOME (LOSS) FROM CONTINUING OPERATIONS AS REPORTED (Unaudited)
|
||||
Six Months Ended
June 30
|
||||
(In thousands) | 2024 | 2023 | ||
Consolidated income (loss) from continuing operations | $ | (25,964) | $ | (22,340) |
Add back (deduct): | ||||
Equity in (income) loss of unconsolidated entities, net | 122 | 442 | ||
Income tax (benefit) expense | 17,935 | 23,348 | ||
Defined benefit pension expense | 8,342 | 10,729 | ||
Facility fee and debt-related expense | 5,709 | 5,093 | ||
Interest expense | 56,056 | 51,404 | ||
Interest income | (5,132) | (3,074) | ||
Depreciation | 73,946 | 67,496 | ||
Amortization | 14,238 | 14,149 | ||
Unusual items: | ||||
Corporate strategic costs | 1,475 | 2,337 | ||
Corporate net gain on sale of assets | (3,281) | - | ||
Harsco Environmental segment net gain on lease incentive | (451) | (9,782) | ||
Harsco Environmental segment property, plant and equipment impairment charge | - | 14,099 | ||
Harsco Environmental segment net gain from sale of business | (1,877) | - | ||
Harsco Environmental segment intangible asset impairment charge | 2,840 | - | ||
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 | 9,380 | (7,032) | ||
Adjusted EBITDA | $ | 164,033 | $ | 146,332 |
ENVIRI CORPORATION
RECONCILIATION OF PROJECTED CONSOLIDATED ADJUSTED EBITDA TO PROJECTED CONSOLIDATED INCOME FROM CONTINUING OPERATIONS
(Unaudited)
|
|||||||||||
Projected | Projected | ||||||||||
Three Months Ending | Twelve Months Ending | ||||||||||
September 30 | December 31 | ||||||||||
2024 | 2024 | ||||||||||
(In millions) | Low | High | Low | High | |||||||
Consolidated loss from continuing operations | $ | (3) | $ | 3 | $ | (41) | $ | (27) | |||
Add back (deduct): | |||||||||||
Income tax (income) expense | 7 | 9 | 31 | 34 | |||||||
Facility fees and debt-related (income) expense | 3 | 3 | 11 | 11 | |||||||
Net interest | 28 | 27 | 108 | 105 | |||||||
Defined benefit pension (income) expense | 5 | 4 | 17 | 17 | |||||||
Depreciation and amortization | 46 | 46 | 180 | 180 | |||||||
Unusual items: | |||||||||||
Corporate strategic costs | - | - | 1 | 1 | |||||||
Corporate net gain on sale of assets | - | - | (3) | (3) | |||||||
Harsco Environmental segment adjustment to net gain on lease incentive | - | - | - | - | |||||||
Harsco Environmental segment net gain on sale of business | - | - | (2) | (2) | |||||||
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 | - | - | 9 | 9 | |||||||
Consolidated Adjusted EBITDA | $ | 85 | (a) | $ | 92 | $ | 327 | (a) | $ | 340 | (a) |
ENVIRI CORPORATION
RECONCILIATION OF ADJUSTED FREE CASH FLOW TO NET CASH PROVIDED BY OPERATING ACTIVITIES (Unaudited)
|
||||||||
Three Months Ended | Six Months Ended | |||||||
June 30 | June 30 | |||||||
(In thousands) | 2024 | 2023 | 2024 | 2023 | ||||
Net cash provided (used) by operating activities | $ | 39,036 | $ | (8,722) | $ | 40,384 | $ | 28,190 |
Less capital expenditures | (33,639) | (44,195) | (60,520) | (66,341) | ||||
Less expenditures for intangible assets | (407) | (391) | (484) | (427) | ||||
Plus capital expenditures for strategic ventures (a) | 297 | 1,465 | 1,450 | 1,951 | ||||
Plus total proceeds from sales of assets (b) | 3,271 | 616 | 7,584 | 1,439 | ||||
Plus transaction-related expenditures (c) | 940 | 128 | 4,440 | 128 | ||||
Adjusted free cash flow | $ | 9,498 | $ | (51,099) | $ | (7,146) | $ | (35,060) |
ENVIRI CORPORATION
RECONCILIATION OF PROJECTED ADJUSTED FREE CASH FLOW TO PROJECTED NET CASH PROVIDED BY OPERATING ACTIVITIES (Unaudited) |
||||
Projected Twelve Months Ending December 31 |
||||
2024 | ||||
(In millions) | Low | High | ||
Net cash provided by operating activities | $ | 132 | $ | 162 |
Less net capital / intangible asset expenditures | (130) | (140) | ||
Plus capital expenditures for strategic ventures | 4 | 4 | ||
Plus transaction-related expenditures | 4 | 4 | ||
Adjusted free cash flow | $ | 10 | $ | 30 |
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 - June 30, 2023
|
$ | 609.0 | |||
Effects on revenues: | |||||
Price/volume changes | 36.5 | - | 36.5 | ||
Foreign currency translation | - | (8.0) | (8.0) | ||
Harsco Environmental segment new and lost contracts | 0.7 | - | 0.7 | ||
Harsco Environmental segment divestiture of Performix Metallurgical Additives, LLC | - | (7.2) | (7.2) | ||
Clean Earth segment pricing settlement with Stericycle, Inc. | - | (6.0) | (6.0) | ||
Harsco Rail segment adjustments from estimated forward loss provisions on certain contracts (a) | - | (15.0) | (15.0) | ||
Total change | 37.2 | (36.2) | 1.0 | ||
Total revenues - June 30, 2024
|
$ | 610.0 | |||
Total change % | 6.1 | % | (5.9) | % | 0.2% |