Enviri Corporation (NYSE: NVRI) today reported third quarter
2023 results. On a U.S. GAAP ("GAAP") basis, the third quarter of
2023 diluted loss per share from continuing operations was $0.11,
after strategic expenses, an accounts receivable provision (linked
to an idled steel mill) and other unusual items. Adjusted diluted
earnings per share from continuing operations in the third quarter
of 2023 was $0.05. These figures compare with third quarter of 2022
GAAP diluted earnings per share from continuing operations of $0.01
and adjusted diluted earnings per share from continuing operations
of $0.10.
GAAP operating income from continuing operations
for the third quarter of 2023 was $30 million. Adjusted EBITDA was
$79 million in the quarter, compared to the Company's previously
provided guidance range of $67 million to $74 million.
“Enviri again delivered strong results in the
third quarter, with both Clean Earth and Harsco Environmental
realizing meaningful year-on-year earnings growth thanks to solid
execution across the Company,” said Enviri Chairman and CEO Nick
Grasberger. “Our adjusted EBITDA margin in the third quarter was
the highest since early 2020, reflecting strong operational and
cost performance, successful improvement initiatives, and the
continued recognition of our value-proposition by customers. We
also made further progress on our ongoing objective to reduce
leverage, supported by healthy cash flow generated by CE and
HE.
"Looking ahead, our outlook for Q4 is positive
and we’re optimistic about further business growth into 2024. Our
competitive position is strong and internal initiatives will
continue to further solidify our strong foundation. Lastly, the
sale process for our Rail business is ongoing, and we are confident
that an agreement will be signed in the coming months.”
Enviri Corporation—Selected
Third Quarter Results
|
($ in millions, except per share amounts) |
|
Q3 2023 |
|
Q3 2022 |
|
Revenues |
|
$ |
525 |
|
|
$ |
487 |
|
|
Operating income/(loss) from continuing operations - GAAP |
|
$ |
30 |
|
|
$ |
30 |
|
|
Diluted EPS from continuing operations - GAAP |
|
$ |
(0.11 |
) |
|
$ |
0.01 |
|
|
Adjusted EBITDA - Non GAAP |
|
$ |
79 |
|
|
$ |
70 |
|
|
Adjusted EBITDA margin - Non GAAP |
|
|
15.1 |
% |
|
|
14.4 |
% |
|
Adjusted diluted EPS from continuing operations - Non GAAP |
|
$ |
0.05 |
|
|
$ |
0.10 |
|
|
Note: Adjusted diluted earnings (loss) per share
from continuing operations and adjusted EBITDA details presented
throughout this release are adjusted for unusual items; in
addition, adjusted diluted earnings per share from continuing
operations is adjusted for acquisition-related amortization
expense. See below for definition of these non-GAAP measures. |
|
|
Consolidated Third Quarter Operating
Results
Consolidated revenues from continuing operations
were $525 million, an increase of 8 percent compared with the
prior-year quarter. Both Harsco Environmental and Clean Earth
realized an increase in revenues compared to the third quarter of
2022 due to higher services pricing and demand. Foreign currency
translation positively impacted third quarter 2023 revenues by
approximately $5 million (1 percent), compared with the prior-year
period.
The Company's GAAP operating income from
continuing operations was $30 million for the third quarter of
2023, compared with a GAAP operating income of $30 million in the
same quarter of 2022. Meanwhile, adjusted EBITDA totaled $79
million in the third quarter of 2023 versus $70 million in the
third quarter of the prior year. Both Harsco Environmental and
Clean Earth achieved higher adjusted EBITDA versus the comparable
quarter of 2022.
Third Quarter Business Review
Harsco Environmental
|
($ in millions) |
|
Q3 2023 |
|
Q3 2022 |
|
Revenues |
|
$ |
286 |
|
|
$ |
265 |
|
|
Operating income - GAAP |
|
$ |
18 |
|
|
$ |
22 |
|
|
Adjusted EBITDA - Non GAAP |
|
$ |
54 |
|
|
$ |
51 |
|
|
Adjusted EBITDA margin - Non GAAP |
|
|
18.9 |
% |
|
|
19.1 |
% |
Harsco Environmental revenues totaled $286
million in the third quarter of 2023, an increase of 8 percent
compared with the prior-year quarter. This increase is attributable
to higher services and products demand and price increases as well
as the impact of FX translation. The segment's GAAP operating
income and adjusted EBITDA totaled $18 million and $54 million,
respectively, in the third quarter of 2023. These figures compare
with GAAP operating income of $22 million and adjusted EBITDA of
$51 million in the prior-year period. The year-on-year change in
adjusted earnings reflects the impact of higher prices and demand
as well as cost improvement initiatives.
Clean Earth
|
($ in millions) |
|
Q3 2023 |
|
Q3 2022 |
|
Revenues |
|
$ |
239 |
|
|
$ |
222 |
|
|
Operating income (loss) - GAAP |
|
$ |
21 |
|
|
$ |
17 |
|
|
Adjusted EBITDA - Non GAAP |
|
$ |
34 |
|
|
$ |
28 |
|
|
Adjusted EBITDA margin - Non GAAP |
|
|
14.2 |
% |
|
|
12.7 |
% |
Clean Earth revenues totaled $239 million in the
third quarter of 2023, a 7 percent increase over the prior-year
quarter as a result of higher services pricing and increased
volumes. The segment's GAAP operating income was $21 million and
adjusted EBITDA was $34 million in the third quarter of 2023. These
figures compare with GAAP operating income of $17 million and
adjusted EBITDA of $28 million in the prior-year period. The
year-on-year improvement in adjusted earnings reflects the above
mentioned factors as well as efficiency initiatives, cost decreases
and favorable business mix. As a result, Clean Earth's adjusted
EBITDA margin increased to 14.2 percent in the third quarter of
2023 versus 12.7 percent in the comparable quarter of 2022.
Cash Flow
Net cash provided by operating activities was
$18 million in the third quarter of 2023, compared with net cash
provided by operating activities of $13 million in the prior-year
period. Free cash flow (excluding Rail) was $10 million in the
third quarter of 2023, compared with $(31) million in the
prior-year period. The change in free cash flow compared with the
prior-year quarter is attributable to higher cash earnings, working
capital changes (net of the accounts receivable securitization
benefit of $25 million in the prior-year quarter) and lower net
capital spending.
2023 Outlook
The Company has again increased its 2023
guidance for Adjusted EBITDA, reflecting the Company's positive
third quarter performance and business momentum. In total, this
change relative to the Company's prior outlook can be attributed to
improved volumes and margin performance in Clean Earth as well as
modestly lower Corporate spending.
For the full year 2023, key business drivers for
each segment as well as other guidance details are as follows:
Harsco Environmental adjusted
EBITDA is projected to be modestly above prior-year results. For
the year, higher services pricing, restructuring benefits, site
improvement initiatives and new contracts are expected to be
partially offset by FX translation impacts and lower commodity
prices.
Clean Earth adjusted EBITDA is
expected to significantly increase versus 2022, as a result of
higher services pricing and volumes as well as cost reduction and
operational improvement actions, offsetting the impacts of
continued labor-market and supply-chain (disposal) tightness.
Corporate spending is
anticipated to be higher relative to the prior year due to the
normalization of certain expenditures, including travel and higher
planned incentive compensation.
| 2023
Full Year Outlook (Continuing
Operations) |
Current |
Prior |
|
GAAP Operating Income/(Loss) |
$103 - $110 million |
$97 - $112 million |
|
Adjusted EBITDA |
$282 - $289 million |
$270 - $285 million |
|
GAAP Diluted Earnings/(Loss) Per Share from Continuing
Operations |
$(0.50) - $(0.59) |
$(0.42) - $(0.58) |
|
Adjusted Diluted Earnings/(Loss) Per Share from Continuing
Operations |
$(0.08) - $(0.17) |
$(0.09) - $(0.25) |
|
Free Cash Flow |
$25 - $35 million |
$30 - $50 million |
|
Net Interest Expense |
$97 million |
$94 - $95 million |
|
Account Receivable Securitization Fees |
$11 million |
$10 million |
|
Pension Expense (Non-Operating) |
$22 million |
$21 - $22 million |
|
Tax Expense, Excluding Any Unusual Items |
$16 - $17 million |
$13 - $17 million |
|
Net Capital Expenditures |
$125 - $135 million |
$125 - $135 million |
|
|
|
|
|
Q4 2023 Outlook (Continuing
Operations) |
|
|
|
GAAP Operating Income |
$20 - $27 million |
|
|
Adjusted EBITDA |
$62 - $69 million |
|
|
GAAP Diluted Earnings/(Loss) Per Share from Continuing
Operations |
$(0.10) - $(0.19) |
|
|
Adjusted Diluted Earnings/(Loss) Per Share from Continuing
Operations |
$(0.03) - $(0.12) |
|
Conference Call
The Company will hold a conference call today at
9:00 a.m. Eastern Time to discuss its results and respond to
questions from the investment community. Those who wish to listen
to the conference call webcast should visit the Investor Relations
section of the Company’s website at www.enviri.com. The live call
also can be accessed by dialing (833) 630-1956, or (412) 317-1837
for international callers. Please ask to join the Enviri
Corporation call. Listeners are advised to dial in approximately
ten minutes prior to the call. If you are unable to listen to the
live call, the webcast will be archived on the Company’s
website.
Forward-Looking Statements
The nature of the Company's business, together
with the number of countries in which it operates, subject it to
changing economic, competitive, regulatory and technological
conditions, risks and uncertainties. In accordance with the "safe
harbor" provisions of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, the Company
provides the following cautionary remarks regarding important
factors that, among others, could cause future results to differ
materially from the results contemplated by forward-looking
statements, including the expectations and assumptions expressed or
implied herein. Forward-looking statements contained herein could
include, among other things, statements about management's
confidence in and strategies for performance; expectations for new
and existing products, technologies and opportunities; and
expectations regarding growth, sales, cash flows, and earnings.
Forward-looking statements can be identified by the use of such
terms as "may," "could," "expect," "anticipate," "intend,"
"believe," "likely," "estimate," "outlook," "plan" or other
comparable terms.
Factors that could cause actual results to
differ, perhaps materially, from those implied by forward-looking
statements include, but are not limited to: (1) changes in the
worldwide business environment in which the Company operates,
including changes in general economic conditions or health
conditions; (2) changes in currency exchange rates, interest rates,
commodity and fuel costs and capital costs; (3) changes in the
performance of equity and bond markets that could affect, among
other things, the valuation of the assets in the Company's pension
plans and the accounting for pension assets, liabilities and
expenses; (4) changes in governmental laws and regulations,
including environmental, occupational health and safety, tax and
import tariff standards and amounts; (5) market and competitive
changes, including pricing pressures, market demand and acceptance
for new products, services and technologies; (6) the Company's
inability or failure to protect its intellectual property rights
from infringement in one or more of the many countries in which the
Company operates; (7) failure to effectively prevent, detect or
recover from breaches in the Company's cybersecurity
infrastructure; (8) unforeseen business disruptions in one or more
of the many countries in which the Company operates due to
political instability, civil disobedience, armed hostilities,
public health issues or other calamities; (9) disruptions
associated with labor disputes and increased operating costs
associated with union organization; (10) the seasonal nature of the
Company's business; (11) the Company's ability to successfully
enter into new contracts and complete new acquisitions or strategic
ventures in the time-frame contemplated, or at all; (12) the
Company's ability to negotiate, complete, and integrate strategic
transactions; (13) failure to complete a process for the
divestiture of the Rail segment on satisfactory terms, or at all;
(14) potential severe volatility in the capital or commodity
markets; (15) failure to retain key management and employees; (16)
the outcome of any disputes with customers, contractors and
subcontractors; (17) the financial condition of the Company's
customers, including the ability of customers (especially those
that may be highly leveraged or have inadequate liquidity) to
maintain their credit availability; (18) implementation of
environmental remediation matters; (19) risk and uncertainty
associated with intangible assets; (20) the risk that the Company
may be unable to implement fully and successfully the expected
incremental actions at the Clean Earth segment due to market
conditions or otherwise and may fail to deliver the expected
resulting benefits; and (21) other risk factors listed from time to
time in the Company's SEC reports. A further discussion of these,
along with other potential risk factors, can be found in Part II,
Item 1A, "Risk Factors," of the Company's Quarterly Report on Form
10-Q for the period ended June 30, 2023, and Part I, Item 1A, "Risk
Factors," of the Company's Annual Report on Form 10-K for the year
ended December 31, 2022, which are filed with the Securities and
Exchange Commission. The Company cautions that these factors may
not be exhaustive and that many of these factors are beyond the
Company's ability to control or predict. Accordingly,
forward-looking statements should not be relied upon as a
prediction of actual results. The Company undertakes no duty to
update forward-looking statements except as may be required by
law.
NON-GAAP MEASURES
Measurements of financial performance not
calculated in accordance with GAAP should be considered as
supplements to, and not substitutes for, performance measurements
calculated or derived in accordance with GAAP. Any such measures
are not necessarily comparable to other similarly-titled
measurements employed by other companies. The most comparable GAAP
measures are included within the definitions below.
Adjusted diluted earnings per share from
continuing operations: Adjusted diluted earnings (loss)
per share from continuing operations is a non-GAAP financial
measure and consists of diluted earnings (loss) per share from
continuing operations adjusted for unusual items and
acquisition-related intangible asset amortization expense. It is
important to note that such intangible assets contribute to revenue
generation and that intangible asset amortization related to past
acquisitions will recur in future periods until such intangible
assets have been fully amortized. The Company’s management believes
Adjusted diluted earnings per share from continuing operations is
useful to investors because it provides an overall understanding of
the Company’s historical and future prospects. Exclusion of unusual
items permits evaluation and comparison of results for the
Company’s core business operations, and it is on this basis that
management internally assesses the Company’s performance. Exclusion
of acquisition-related intangible asset amortization expense, the
amount of which can vary by the timing, size and nature of the
Company’s acquisitions, facilitates more consistent internal
comparisons of operating results over time between the Company’s
newly acquired and long-held businesses, and comparisons with both
acquisitive and non-acquisitive peer companies.
Adjusted EBITDA: Adjusted
EBITDA is a non-GAAP financial measure and consists of income
(loss) from continuing operations adjusted to add back income tax
expense; equity income of unconsolidated entities, net; net
interest expense; defined benefit pension income (expense);
facility fees and debt-related income (expense); and depreciation
and amortization (excluding amortization of deferred financing
costs); and excludes unusual items. Segment Adjusted EBITDA
consists of operating income from continuing operations adjusted to
exclude unusual items and add back depreciation and amortization
(excluding amortization of deferred financing costs). The sum
of the Segments’ Adjusted EBITDA and Corporate Adjusted EBITDA
equals consolidated Adjusted EBITDA. The Company‘s management
believes Adjusted EBITDA is meaningful to investors because
management reviews Adjusted EBITDA in assessing and evaluating
performance.
Free cash flow: Free cash flow
is a non-GAAP financial measure and consists of net cash provided
(used) by operating activities less capital expenditures and
expenditures for intangible assets; and plus capital expenditures
for strategic ventures, total proceeds from sales of assets and
certain transaction-related / debt-refinancing expenditures. The
Company's management believes that Free cash flow is meaningful to
investors because management reviews Free cash flow for planning
and performance evaluation purposes. It is important to note that
Free cash flow does not represent the total residual cash flow
available for discretionary expenditures since other
non-discretionary expenditures, such as mandatory debt service
requirements and settlements of foreign currency forward exchange
contracts, are not deducted from this measure. Free cash flow
excludes the former Harsco Rail Segment since the segment is
reported as discontinued operations. This presentation provides a
basis for comparison of ongoing operations and prospects.
About Enviri Enviri is
transforming the world to green as a trusted global leader in
providing a broad range of environmental services and related
innovative solutions. The company serves a diverse customer base by
offering critical recycle and reuse solutions for their waste
streams, enabling customers to address their most complex
environmental challenges and to achieve their sustainability goals.
Enviri is based in Philadelphia, Pennsylvania and operates in more
than 150 locations in over 30 countries. Additional information can
be found at www.enviri.com.
|
ENVIRI CORPORATION CONSOLIDATED STATEMENTS
OF OPERATIONS (Unaudited) |
|
|
|
|
|
| |
|
Three Months
Ended |
|
Nine Months
Ended |
|
| |
|
September 30 |
|
September 30 |
|
|
(In thousands, except per share amounts) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
Revenues from continuing operations: |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
524,588 |
|
|
$ |
486,914 |
|
|
$ |
1,540,409 |
|
|
$ |
1,420,763 |
|
|
|
Costs and expenses from continuing
operations: |
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
|
408,743 |
|
|
|
392,803 |
|
|
|
1,216,058 |
|
|
|
1,173,021 |
|
|
|
Selling, general and administrative expenses |
|
|
84,389 |
|
|
|
64,146 |
|
|
|
233,174 |
|
|
|
201,234 |
|
|
|
Research and development expenses |
|
|
271 |
|
|
|
193 |
|
|
|
947 |
|
|
|
545 |
|
|
|
Goodwill impairment charge |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
104,580 |
|
|
|
Property, plant and equipment impairment charge |
|
|
— |
|
|
|
— |
|
|
|
14,099 |
|
|
|
— |
|
|
|
Other expense (income), net |
|
|
1,410 |
|
|
|
(351 |
) |
|
|
(6,964 |
) |
|
|
515 |
|
|
|
Total costs and expenses |
|
|
494,813 |
|
|
|
456,791 |
|
|
|
1,457,314 |
|
|
|
1,479,895 |
|
|
|
Operating income (loss) from continuing
operations |
|
|
29,775 |
|
|
|
30,123 |
|
|
|
83,095 |
|
|
|
(59,132 |
) |
|
| Interest
income |
|
|
1,679 |
|
|
|
952 |
|
|
|
4,701 |
|
|
|
2,289 |
|
|
| Interest
expense |
|
|
(26,739 |
) |
|
|
(19,751 |
) |
|
|
(76,791 |
) |
|
|
(51,535 |
) |
|
| Facility
fees and debt-related income (expense) |
|
|
(2,806 |
) |
|
|
(2,511 |
) |
|
|
(7,899 |
) |
|
|
(894 |
) |
|
| Defined
benefit pension income (expense) |
|
|
(5,436 |
) |
|
|
2,118 |
|
|
|
(16,178 |
) |
|
|
6,775 |
|
|
|
Income (loss) from continuing operations before income
taxes and equity income |
|
|
(3,527 |
) |
|
|
10,931 |
|
|
|
(13,072 |
) |
|
|
(102,497 |
) |
|
| Income tax
benefit (expense) from continuing operations |
|
|
(4,109 |
) |
|
|
(9,376 |
) |
|
|
(21,351 |
) |
|
|
(7,482 |
) |
|
| Equity
income (loss) of unconsolidated entities, net |
|
|
(151 |
) |
|
|
(128 |
) |
|
|
(593 |
) |
|
|
(373 |
) |
|
| Income
(loss) from continuing operations |
|
|
(7,787 |
) |
|
|
1,427 |
|
|
|
(35,016 |
) |
|
|
(110,352 |
) |
|
|
Discontinued operations: |
|
|
|
|
|
|
|
|
|
|
Income (loss) from discontinued businesses |
|
|
(3,317 |
) |
|
|
1,993 |
|
|
|
4,858 |
|
|
|
(35,225 |
) |
|
|
Income tax benefit (expense) from discontinued businesses |
|
|
1,010 |
|
|
|
(539 |
) |
|
|
(4,364 |
) |
|
|
5,282 |
|
|
|
Income (loss) from discontinued operations, net of
tax |
|
|
(2,307 |
) |
|
|
1,454 |
|
|
|
494 |
|
|
|
(29,943 |
) |
|
| Net
income (loss) |
|
|
(10,094 |
) |
|
|
2,881 |
|
|
|
(34,522 |
) |
|
|
(140,295 |
) |
|
|
Less: Net loss (income) attributable to noncontrolling
interests |
|
|
(708 |
) |
|
|
(802 |
) |
|
|
2,756 |
|
|
|
(3,056 |
) |
|
| Net
income (loss) attributable to Enviri Corporation |
|
$ |
(10,802 |
) |
|
$ |
2,079 |
|
|
$ |
(31,766 |
) |
|
$ |
(143,351 |
) |
|
|
Amounts attributable to Enviri Corporation common
stockholders: |
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations, net of tax |
|
$ |
(8,495 |
) |
|
$ |
625 |
|
|
$ |
(32,260 |
) |
|
$ |
(113,408 |
) |
|
|
Income (loss) from discontinued operations, net of tax |
|
|
(2,307 |
) |
|
|
1,454 |
|
|
|
494 |
|
|
|
(29,943 |
) |
|
|
Net income (loss) attributable to Enviri Corporation common
stockholders |
|
$ |
(10,802 |
) |
|
$ |
2,079 |
|
|
$ |
(31,766 |
) |
|
$ |
(143,351 |
) |
|
| |
|
|
|
|
|
|
|
|
|
|
Weighted-average shares of common stock outstanding |
|
|
79,850 |
|
|
|
79,531 |
|
|
|
79,767 |
|
|
|
79,469 |
|
|
| Basic earnings
(loss) per common share attributable to Enviri Corporation common
stockholders: |
|
|
Continuing operations |
|
$ |
(0.11 |
) |
|
$ |
0.01 |
|
|
$ |
(0.40 |
) |
|
$ |
(1.43 |
) |
|
|
Discontinued operations |
|
$ |
(0.03 |
) |
|
$ |
0.02 |
|
|
$ |
0.01 |
|
|
$ |
(0.38 |
) |
|
|
Basic earnings (loss) per share attributable to Enviri
Corporation common stockholders |
|
$ |
(0.14 |
) |
|
$ |
0.03 |
|
|
$ |
(0.40 |
) |
(a) |
$ |
(1.80 |
) |
(a) |
| |
|
|
|
|
|
|
|
|
|
| Diluted
weighted-average shares of common stock outstanding |
|
|
79,850 |
|
|
|
79,567 |
|
|
|
79,767 |
|
|
|
79,469 |
|
|
| Diluted
earnings (loss) per common share attributable to Enviri Corporation
common stockholders: |
|
|
Continuing operations |
|
$ |
(0.11 |
) |
|
$ |
0.01 |
|
|
$ |
(0.40 |
) |
|
$ |
(1.43 |
) |
|
|
Discontinued operations |
|
$ |
(0.03 |
) |
|
$ |
0.02 |
|
|
$ |
0.01 |
|
|
$ |
(0.38 |
) |
|
|
Diluted earnings (loss) per share attributable to Enviri
Corporation common stockholders |
|
$ |
(0.14 |
) |
|
$ |
0.03 |
|
|
$ |
(0.40 |
) |
(a) |
$ |
(1.80 |
) |
(a) |
- Does not total due to rounding
|
|
ENVIRI CORPORATIONCONSOLIDATED BALANCE
SHEETS |
|
|
|
|
|
(In thousands) |
|
September 302023 |
|
December 312022 |
|
ASSETS |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
95,592 |
|
|
$ |
81,332 |
|
|
Restricted cash |
|
|
3,095 |
|
|
|
3,762 |
|
|
Trade accounts receivable, net |
|
|
288,030 |
|
|
|
264,428 |
|
|
Other receivables |
|
|
29,557 |
|
|
|
25,379 |
|
|
Inventories |
|
|
84,569 |
|
|
|
81,375 |
|
|
Prepaid expenses |
|
|
33,941 |
|
|
|
30,583 |
|
|
Current portion of assets held-for-sale |
|
|
268,993 |
|
|
|
266,335 |
|
|
Other current assets |
|
|
27,620 |
|
|
|
14,541 |
|
|
Total current assets |
|
|
831,397 |
|
|
|
767,735 |
|
| Property,
plant and equipment, net |
|
|
641,434 |
|
|
|
656,875 |
|
| Right-of-use
assets, net |
|
|
98,624 |
|
|
|
101,253 |
|
|
Goodwill |
|
|
759,027 |
|
|
|
759,253 |
|
| Intangible
assets, net |
|
|
331,246 |
|
|
|
352,160 |
|
| Deferred
income tax assets |
|
|
14,784 |
|
|
|
17,489 |
|
| Assets
held-for-sale |
|
|
89,986 |
|
|
|
70,105 |
|
| Other
assets |
|
|
70,937 |
|
|
|
65,984 |
|
|
Total assets |
|
$ |
2,837,435 |
|
|
$ |
2,790,854 |
|
|
LIABILITIES |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Short-term borrowings |
|
$ |
14,006 |
|
|
$ |
7,751 |
|
|
Current maturities of long-term debt |
|
|
14,990 |
|
|
|
11,994 |
|
|
Accounts payable |
|
|
202,067 |
|
|
|
205,577 |
|
|
Accrued compensation |
|
|
59,224 |
|
|
|
43,595 |
|
|
Income taxes payable |
|
|
7,654 |
|
|
|
3,640 |
|
|
Current portion of operating lease liabilities |
|
|
25,434 |
|
|
|
25,521 |
|
|
Current portion of liabilities of assets held-for-sale |
|
|
139,219 |
|
|
|
159,004 |
|
|
Other current liabilities |
|
|
130,295 |
|
|
|
140,199 |
|
|
Total current liabilities |
|
|
592,889 |
|
|
|
597,281 |
|
| Long-term
debt |
|
|
1,400,428 |
|
|
|
1,336,995 |
|
| Retirement
plan liabilities |
|
|
48,593 |
|
|
|
46,601 |
|
| Operating
lease liabilities |
|
|
74,305 |
|
|
|
75,246 |
|
| Liabilities
of assets held-for-sale |
|
|
4,400 |
|
|
|
9,463 |
|
|
Environmental liabilities |
|
|
25,309 |
|
|
|
26,880 |
|
| Deferred tax
liabilities |
|
|
31,349 |
|
|
|
30,069 |
|
| Other
liabilities |
|
|
46,397 |
|
|
|
45,277 |
|
|
Total liabilities |
|
|
2,223,670 |
|
|
|
2,167,812 |
|
|
ENVIRI CORPORATION STOCKHOLDERS’ EQUITY |
|
|
|
|
| Common
stock |
|
|
146,079 |
|
|
|
145,448 |
|
| Additional
paid-in capital |
|
|
235,245 |
|
|
|
225,759 |
|
| Accumulated
other comprehensive loss |
|
|
(550,334 |
) |
|
|
(567,636 |
) |
| Retained
earnings |
|
|
1,582,675 |
|
|
|
1,614,441 |
|
| Treasury
stock |
|
|
(849,944 |
) |
|
|
(848,570 |
) |
|
Total Enviri Corporation stockholders’ equity |
|
|
563,721 |
|
|
|
569,442 |
|
|
Noncontrolling interests |
|
|
50,044 |
|
|
|
53,600 |
|
|
Total equity |
|
|
613,765 |
|
|
|
623,042 |
|
|
Total liabilities and equity |
|
$ |
2,837,435 |
|
|
$ |
2,790,854 |
|
| ENVIRI
CORPORATIONCONSOLIDATED STATEMENTS OF CASH
FLOWS (Unaudited) |
| |
|
Three Months EndedSeptember
30 |
|
Nine Months EndedSeptember
30 |
|
(In thousands) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
(10,094 |
) |
|
$ |
2,881 |
|
|
$ |
(34,522 |
) |
|
$ |
(140,295 |
) |
|
Adjustments to reconcile net income (loss) to net cash provided by
operating activities: |
|
Depreciation |
|
|
35,397 |
|
|
|
31,892 |
|
|
|
102,893 |
|
|
|
97,959 |
|
|
Amortization |
|
|
8,295 |
|
|
|
8,538 |
|
|
|
24,327 |
|
|
|
25,605 |
|
|
Deferred income tax (benefit) expense |
|
|
(5,424 |
) |
|
|
(1,660 |
) |
|
|
2,198 |
|
|
|
(12,056 |
) |
|
Equity (income) loss of unconsolidated entities, net |
|
|
151 |
|
|
|
128 |
|
|
|
593 |
|
|
|
373 |
|
|
Dividends from unconsolidated entities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
526 |
|
|
(Gain) loss on early extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,254 |
) |
|
Goodwill impairment charge |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
104,580 |
|
|
Property, plant and equipment impairment charge |
|
|
— |
|
|
|
— |
|
|
|
14,099 |
|
|
|
— |
|
|
Other, net |
|
|
597 |
|
|
|
(639 |
) |
|
|
4,743 |
|
|
|
381 |
|
|
Changes in assets and liabilities, net of acquisitions and
dispositions of businesses: |
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
8,217 |
|
|
|
(12,613 |
) |
|
|
(48,166 |
) |
|
|
74,994 |
|
|
Income tax refunds receivable, reimbursable to seller |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,687 |
|
|
Inventories |
|
|
(2,596 |
) |
|
|
(2,904 |
) |
|
|
(10,548 |
) |
|
|
(11,339 |
) |
|
Contract assets |
|
|
4,852 |
|
|
|
1,753 |
|
|
|
1,317 |
|
|
|
9,589 |
|
|
Right-of-use assets |
|
|
8,256 |
|
|
|
7,446 |
|
|
|
24,467 |
|
|
|
21,829 |
|
|
Accounts payable |
|
|
(13,778 |
) |
|
|
(5,817 |
) |
|
|
(818 |
) |
|
|
13,030 |
|
|
Accrued interest payable |
|
|
(6,636 |
) |
|
|
(6,819 |
) |
|
|
(6,828 |
) |
|
|
(7,559 |
) |
|
Accrued compensation |
|
|
11,242 |
|
|
|
325 |
|
|
|
20,436 |
|
|
|
(5,559 |
) |
|
Advances on contracts |
|
|
(8,846 |
) |
|
|
7,639 |
|
|
|
(21,824 |
) |
|
|
(5,987 |
) |
|
Operating lease liabilities |
|
|
(8,190 |
) |
|
|
(7,403 |
) |
|
|
(22,980 |
) |
|
|
(21,498 |
) |
|
Retirement plan liabilities, net |
|
|
606 |
|
|
|
(6,242 |
) |
|
|
(4,862 |
) |
|
|
(27,829 |
) |
|
Other assets and liabilities |
|
|
(4,067 |
) |
|
|
(3,083 |
) |
|
|
1,647 |
|
|
|
8,984 |
|
|
Net cash provided (used) by operating
activities |
|
|
17,982 |
|
|
|
13,422 |
|
|
|
46,172 |
|
|
|
131,161 |
|
| Cash
flows from investing activities: |
|
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
|
(27,289 |
) |
|
|
(39,854 |
) |
|
|
(93,630 |
) |
|
|
(101,645 |
) |
|
Proceeds from sales of assets |
|
|
641 |
|
|
|
1,698 |
|
|
|
2,080 |
|
|
|
8,289 |
|
|
Expenditures for intangible assets |
|
|
(51 |
) |
|
|
(47 |
) |
|
|
(478 |
) |
|
|
(147 |
) |
|
Proceeds from note receivable |
|
|
— |
|
|
|
— |
|
|
|
11,238 |
|
|
|
8,605 |
|
|
Net proceeds (payments) from settlement of foreign currency forward
exchange contracts |
|
|
4,442 |
|
|
|
8,572 |
|
|
|
2,034 |
|
|
|
13,571 |
|
|
Payments for settlements of interest rate swaps |
|
|
— |
|
|
|
(463 |
) |
|
|
— |
|
|
|
(2,586 |
) |
|
Other investing activities, net |
|
|
378 |
|
|
|
67 |
|
|
|
462 |
|
|
|
220 |
|
|
Net cash used by investing activities |
|
|
(21,879 |
) |
|
|
(30,027 |
) |
|
|
(78,294 |
) |
|
|
(73,693 |
) |
| Cash
flows from financing activities: |
|
|
|
|
|
|
|
|
|
Short-term borrowings, net |
|
|
3,595 |
|
|
|
308 |
|
|
|
4,196 |
|
|
|
277 |
|
|
Current maturities and long-term debt: |
|
|
|
|
|
|
|
|
|
Additions |
|
|
61,996 |
|
|
|
54,468 |
|
|
|
185,992 |
|
|
|
159,429 |
|
|
Reductions |
|
|
(49,795 |
) |
|
|
(45,970 |
) |
|
|
(140,522 |
) |
|
|
(198,831 |
) |
|
Contributions from noncontrolling interests |
|
|
— |
|
|
|
— |
|
|
|
1,654 |
|
|
|
— |
|
|
Dividends paid to noncontrolling interests |
|
|
— |
|
|
|
(4,841 |
) |
|
|
— |
|
|
|
(4,841 |
) |
|
Sale of noncontrolling interests |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,901 |
|
|
Stock-based compensation - Employee taxes paid |
|
|
(136 |
) |
|
|
(119 |
) |
|
|
(1,374 |
) |
|
|
(1,817 |
) |
|
Payment of contingent consideration |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6,915 |
) |
|
Net cash (used) provided by financing
activities |
|
|
15,660 |
|
|
|
3,846 |
|
|
|
49,946 |
|
|
|
(50,797 |
) |
| Effect of
exchange rate changes on cash and cash equivalents, including
restricted cash |
|
|
(2,442 |
) |
|
|
(3,011 |
) |
|
|
(4,231 |
) |
|
|
(8,762 |
) |
| Net increase
(decrease) in cash and cash equivalents, including restricted
cash |
|
|
9,321 |
|
|
|
(15,770 |
) |
|
|
13,593 |
|
|
|
(2,091 |
) |
| Cash and
cash equivalents, including restricted cash, at beginning of
period |
|
|
89,366 |
|
|
|
100,807 |
|
|
|
85,094 |
|
|
|
87,128 |
|
| Cash
and cash equivalents, including restricted cash, at end of
period |
|
$ |
98,687 |
|
|
$ |
85,037 |
|
|
$ |
98,687 |
|
|
$ |
85,037 |
|
| ENVIRI
CORPORATION REVIEW OF OPERATIONS BY
SEGMENT (Unaudited) |
| |
|
Three Months
Ended |
|
Three Months
Ended |
| |
|
September 30, 2023 |
|
September 30, 2022 |
|
(In thousands) |
|
Revenues |
|
OperatingIncome (Loss) |
|
Revenues |
|
Operating Income (Loss) |
|
Harsco Environmental |
|
$ |
285,877 |
|
$ |
17,867 |
|
|
$ |
264,717 |
|
$ |
22,117 |
|
|
Clean Earth |
|
|
238,711 |
|
|
21,497 |
|
|
|
222,197 |
|
|
17,315 |
|
|
Corporate |
|
|
— |
|
|
(9,589 |
) |
|
|
— |
|
|
(9,309 |
) |
|
Consolidated Totals |
|
$ |
524,588 |
|
$ |
29,775 |
|
|
$ |
486,914 |
|
$ |
30,123 |
|
| |
|
|
|
|
|
|
|
|
| |
|
Nine Months
Ended |
|
Nine Months
Ended |
| |
|
September 30, 2023 |
|
September 30, 2022 |
|
(In thousands) |
|
Revenues |
|
OperatingIncome (Loss) |
|
Revenues |
|
Operating Income (Loss) |
|
Harsco Environmental |
|
$ |
848,659 |
|
$ |
52,885 |
|
|
$ |
804,367 |
|
$ |
63,931 |
|
|
Clean Earth |
|
|
691,750 |
|
|
61,002 |
|
|
|
616,396 |
|
|
(95,650 |
) |
|
Corporate |
|
|
— |
|
|
(30,792 |
) |
|
|
— |
|
|
(27,413 |
) |
|
Consolidated Totals |
|
$ |
1,540,409 |
|
$ |
83,095 |
|
|
$ |
1,420,763 |
|
$ |
(59,132 |
) |
| ENVIRI
CORPORATIONRECONCILIATION OF ADJUSTED DILUTED
EARNINGS PER SHARE FROM CONTINUING OPERATIONS TO DILUTED EARNINGS
(LOSS) PER SHARE FROM CONTINUING OPERATIONS AS
REPORTED (Unaudited) |
| |
|
Three Months
Ended |
|
Nine Months
Ended |
| |
|
September 30 |
|
September 30 |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Diluted earnings (loss) per share from continuing operations, as
reported |
|
$ |
(0.11 |
) |
|
$ |
0.01 |
|
|
$ |
(0.40 |
) |
|
$ |
(1.43 |
) |
| Facility
fees and debt-related expense (income) (a) |
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
|
(0.01 |
) |
| Corporate
strategic costs (b) |
|
|
0.01 |
|
|
|
— |
|
|
|
0.03 |
|
|
|
— |
|
| Corporate
contingent consideration adjustment (c) |
|
|
(0.01 |
) |
|
|
— |
|
|
|
(0.01 |
) |
|
|
— |
|
| Harsco
Environmental segment severance costs (d) |
|
|
0.01 |
|
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
| Harsco
Environmental net gain on lease incentive (e) |
|
|
— |
|
|
|
— |
|
|
|
(0.12 |
) |
|
|
— |
|
| Harsco
Environmental property, plant and equipment impairment charge, net
of noncontrolling interest (f) |
|
|
— |
|
|
|
— |
|
|
|
0.10 |
|
|
|
— |
|
| Harsco
Environmental accounts receivable provision (g) |
|
|
0.07 |
|
|
|
— |
|
|
|
0.07 |
|
|
|
— |
|
| Clean Earth
segment goodwill impairment charge (h) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1.32 |
|
| Clean Earth
segment severance costs (i) |
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
|
0.03 |
|
| Clean Earth
segment contingent consideration adjustments (j) |
|
|
— |
|
|
|
(0.01 |
) |
|
|
— |
|
|
|
(0.01 |
) |
| Taxes on
above unusual items (k) |
|
|
— |
|
|
|
— |
|
|
|
0.07 |
|
|
|
(0.04 |
) |
|
Adjusted diluted earnings (loss) per share from continuing
operations, including acquisition amortization
expense |
|
|
(0.02 |
) |
(m) |
|
0.02 |
|
|
|
(0.26 |
) |
(m) |
|
(0.14 |
) |
| Acquisition
amortization expense, net of tax (l) |
|
|
0.07 |
|
|
|
0.08 |
|
|
|
0.21 |
|
|
|
0.23 |
|
|
Adjusted diluted earnings (loss) per share from continuing
operations |
|
$ |
0.05 |
|
|
$ |
0.10 |
|
|
$ |
(0.05 |
) |
|
$ |
0.09 |
|
| |
- Costs incurred at Corporate to
amend the Company's Senior Secured Credit Facilities, partially
offset by a gain on the repurchase of $25.0 million of Senior Notes
(Q3 2022 $1.1 million pre-tax expense; nine months 2022 $0.5
million pre-tax income).
- Certain strategic costs incurred at
Corporate associated with supporting and executing the Company's
long-term strategies (Q3 2023 $1.0 million pre-tax expense; nine
months ended 2023 $2.3 million pre-tax expense). 2022 included the
relocation of the Company's headquarters, in addition to other
certain strategic costs incurred at Corporate (Q3 2022 $0.3 million
pre-tax expense; nine months 2022 $0.1 million pre-tax
expense).
- Adjustment related to a previously
recorded liability related to a contingent consideration from the
Company's acquisition of Clean Earth (Q3 2023 and nine months ended
2023 $0.8 million pre-tax income).
- Severance and related costs
incurred in the Harsco Environmental segment (Q3 2023 and nine
months ended 2023 $1.1 million pre-tax expense).
- Net gain recognized for a lease
modification that resulted in a lease incentive for the Company for
a site relocation prior the end of the expected lease term (nine
months ended 2023 $9.8 million pre-tax income).
- Non-cash property, plant and
equipment impairment charge related to abandoned equipment at a
Harsco Environmental site, net of noncontrolling interest impact
(nine months ended 2023 net $7.9 million, which includes $14.1
million pre-tax expense, net of $6.2 million that represents the
noncontrolling partner's share of the impairment charge).
- Accounts receivable provision
related to a customer in the Middle East (Q3 2023 and nine months
ended 2023 $5.3 million pre-tax expense).
- Non-cash goodwill impairment charge
in the Clean Earth segment (nine months 2022 $104.6 million pre-tax
expense).
- Severance and related costs
incurred in the Clean Earth segment (Q3 2022 $1.1 million pre-tax
expense; nine months 2022 $2.5 million pre-tax expense).
- Adjustment to a contingent
consideration related to an acquisition in the Clean Earth segment
(Q3 2022 and nine months 2022 $0.8 million pre-tax income).
- Unusual items are tax-effected at
the global effective tax rate, before discrete items, in effect at
the time the unusual item is recorded.
- Pre-tax acquisition amortization
expense was $7.4 million and $7.7 million in Q3 2023 and 2022,
respectively, and after-tax was $5.7 million and $6.0 million in Q3
2023 and 2022, respectively. Pre-tax acquisition amortization
expense was $21.5 million and $23.4 million for the nine months
ended 2023 and 2022, respectively, and after-tax was $16.6 million
and $18.4 million for the nine months ended 2023 and 2022,
respectively.
- Does not total due to
rounding.
|
| ENVIRI
CORPORATION RECONCILIATION OF PROJECTED ADJUSTED
DILUTED EARNINGS (LOSS) PER SHARE FROM CONTINUING OPERATIONS TO
DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS (a)
(Unaudited) |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
Projected |
|
Projected |
|
| |
|
Three Months
Ending |
|
Twelve
Months Ending |
|
| |
|
December 31 |
|
December 31 |
|
| |
|
|
2023 |
|
|
|
2023 |
|
|
|
|
|
Low |
|
High |
|
Low |
|
High |
|
|
Diluted earnings (loss) per share from continuing operations |
|
$ |
(0.19 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.59 |
) |
|
$ |
(0.50 |
) |
|
| Corporate
strategic costs |
|
|
— |
|
|
|
— |
|
|
|
0.03 |
|
|
|
0.03 |
|
|
| Corporate
contingent consideration adjustment |
|
|
— |
|
|
|
— |
|
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
| Harsco
Environmental segment severance costs |
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
| Harsco
Environmental segment net gain on lease incentive |
|
|
— |
|
|
|
— |
|
|
|
(0.12 |
) |
|
|
(0.12 |
) |
|
| Harsco
Environmental property, plant and equipment impairment charge, net
of noncontrolling interest |
|
|
— |
|
|
|
— |
|
|
|
0.10 |
|
|
|
0.10 |
|
|
| Harsco
Environmental accounts receivable provision |
|
|
— |
|
|
|
— |
|
|
|
0.07 |
|
|
|
0.07 |
|
|
| Taxes on
above unusual items |
|
|
— |
|
|
|
— |
|
|
|
0.07 |
|
|
|
0.07 |
|
|
|
Adjusted diluted earnings (loss) per share from continuing
operations, including acquisition amortization
expense |
|
|
(0.19 |
) |
|
|
(0.10 |
) |
|
|
(0.45 |
) |
(b) |
|
(0.36 |
) |
(b) |
| Estimated
acquisition amortization expense, net of tax |
|
|
0.07 |
|
|
|
0.07 |
|
|
|
0.28 |
|
|
|
0.28 |
|
|
|
Adjusted diluted earnings (loss) per share from continuing
operations |
|
$ |
(0.12 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.17 |
) |
(b) |
$ |
(0.08 |
) |
|
| |
- Excludes Harsco Rail Segment.
- Does not total due to rounding.
|
| ENVIRI
CORPORATION RECONCILIATION OF ADJUSTED EBITDA BY
SEGMENT TO OPERATING INCOME (LOSS) AS REPORTED BY SEGMENT
(Unaudited) |
|
(In thousands) |
|
HarscoEnvironmental |
|
Clean Earth |
|
Corporate |
|
ConsolidatedTotals |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2023: |
|
|
|
|
|
|
|
Operating income (loss), as reported |
|
$ |
17,867 |
|
|
$ |
21,497 |
|
|
$ |
(9,589 |
) |
|
$ |
29,775 |
|
|
Corporate strategic costs |
|
|
— |
|
|
|
— |
|
|
|
987 |
|
|
|
987 |
|
|
Corporate contingent consideration adjustment |
|
|
— |
|
|
|
— |
|
|
|
(828 |
) |
|
|
(828 |
) |
|
Harsco Environmental segment severance costs |
|
|
1,146 |
|
|
|
— |
|
|
|
— |
|
|
|
1,146 |
|
|
Harsco Environmental accounts receivable provision |
|
|
5,284 |
|
|
|
— |
|
|
|
— |
|
|
|
5,284 |
|
| Operating
income (loss) excluding unusual items |
|
|
24,297 |
|
|
|
21,497 |
|
|
|
(9,430 |
) |
|
|
36,364 |
|
|
Depreciation |
|
|
28,793 |
|
|
|
6,054 |
|
|
|
550 |
|
|
|
35,397 |
|
|
Amortization |
|
|
1,013 |
|
|
|
6,330 |
|
|
|
— |
|
|
|
7,343 |
|
| Adjusted
EBITDA |
|
$ |
54,103 |
|
|
$ |
33,881 |
|
|
$ |
(8,880 |
) |
|
$ |
79,104 |
|
| Revenues as
reported |
|
$ |
285,877 |
|
|
$ |
238,711 |
|
|
|
|
$ |
524,588 |
|
| Adjusted
EBITDA margin (%) |
|
|
18.9 |
% |
|
|
14.2 |
% |
|
|
|
|
15.1 |
% |
| |
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2022: |
|
|
|
|
|
|
| Operating
income (loss), as reported |
|
$ |
22,117 |
|
|
$ |
17,315 |
|
|
$ |
(9,309 |
) |
|
$ |
30,123 |
|
|
Corporate strategic costs |
|
|
— |
|
|
|
— |
|
|
|
346 |
|
|
|
346 |
|
|
Clean Earth segment severance costs |
|
|
— |
|
|
|
1,092 |
|
|
|
— |
|
|
|
1,092 |
|
|
Clean Earth contingent consideration adjustment |
|
|
— |
|
|
|
(827 |
) |
|
|
— |
|
|
|
(827 |
) |
| Operating
income (loss) excluding unusual items |
|
|
22,117 |
|
|
|
17,580 |
|
|
|
(8,963 |
) |
|
|
30,734 |
|
|
Depreciation |
|
|
26,772 |
|
|
|
4,576 |
|
|
|
544 |
|
|
|
31,892 |
|
|
Amortization |
|
|
1,619 |
|
|
|
6,071 |
|
|
|
— |
|
|
|
7,690 |
|
| Adjusted
EBITDA |
|
$ |
50,508 |
|
|
$ |
28,227 |
|
|
$ |
(8,419 |
) |
|
$ |
70,316 |
|
| Revenues as
reported |
|
$ |
264,717 |
|
|
$ |
222,197 |
|
|
|
|
$ |
486,914 |
|
| Adjusted
EBITDA margin (%) |
|
|
19.1 |
% |
|
|
12.7 |
% |
|
|
|
|
14.4 |
% |
| ENVIRI
CORPORATIONRECONCILIATION OF ADJUSTED EBITDA BY
SEGMENT TO OPERATING INCOME (LOSS) AS REPORTED BY
SEGMENT (Unaudited) |
|
(In thousands) |
|
HarscoEnvironmental |
|
Clean Earth |
|
Corporate |
|
ConsolidatedTotals |
|
|
|
|
|
|
|
|
|
|
| Nine
Months Ended September 30, 2023: |
|
|
|
|
|
|
|
|
|
Operating income (loss), as reported |
|
$ |
52,885 |
|
|
$ |
61,002 |
|
|
$ |
(30,792 |
) |
|
$ |
83,095 |
|
|
Corporate strategic costs |
|
|
— |
|
|
|
— |
|
|
|
2,253 |
|
|
|
2,253 |
|
|
Corporate contingent consideration adjustment |
|
|
— |
|
|
|
— |
|
|
|
(828 |
) |
|
|
(828 |
) |
|
Harsco Environmental segment severance costs |
|
|
1,146 |
|
|
|
— |
|
|
|
— |
|
|
|
1,146 |
|
|
Harsco Environmental segment net gain on lease incentive |
|
|
(9,782 |
) |
|
|
— |
|
|
|
— |
|
|
|
(9,782 |
) |
|
Harsco Environmental property, plant and equipment impairment
charge |
|
|
14,099 |
|
|
|
— |
|
|
|
— |
|
|
|
14,099 |
|
|
Harsco Environmental accounts receivable provision |
|
|
5,284 |
|
|
|
— |
|
|
|
— |
|
|
|
5,284 |
|
| Operating
income (loss) excluding unusual items |
|
|
63,632 |
|
|
|
61,002 |
|
|
|
(29,367 |
) |
|
|
95,267 |
|
|
Depreciation |
|
|
84,707 |
|
|
|
16,528 |
|
|
|
1,658 |
|
|
|
102,893 |
|
|
Amortization |
|
|
3,020 |
|
|
|
18,472 |
|
|
|
— |
|
|
|
21,492 |
|
| Adjusted
EBITDA |
|
|
151,359 |
|
|
|
96,002 |
|
|
|
(27,709 |
) |
|
|
219,652 |
|
| Revenues as
reported |
|
$ |
848,659 |
|
|
$ |
691,750 |
|
|
|
|
$ |
1,540,409 |
|
| Adjusted
EBITDA margin (%) |
|
|
17.8 |
% |
|
|
13.9 |
% |
|
|
|
|
14.3 |
% |
| |
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2022: |
|
|
|
|
|
|
| Operating
income (loss), as reported |
|
$ |
63,931 |
|
|
$ |
(95,650 |
) |
|
$ |
(27,413 |
) |
|
$ |
(59,132 |
) |
|
Corporate strategic costs |
|
|
— |
|
|
|
— |
|
|
|
128 |
|
|
|
128 |
|
|
Clean Earth segment goodwill impairment charge |
|
|
— |
|
|
|
104,580 |
|
|
|
— |
|
|
|
104,580 |
|
|
Clean Earth segment severance costs |
|
|
— |
|
|
|
2,540 |
|
|
|
— |
|
|
|
2,540 |
|
|
Clean Earth segment contingent consideration adjustment |
|
|
— |
|
|
|
(827 |
) |
|
|
— |
|
|
|
(827 |
) |
| Operating
income (loss) excluding unusual items |
|
|
63,931 |
|
|
|
10,643 |
|
|
|
(27,285 |
) |
|
|
47,289 |
|
|
Depreciation |
|
|
82,311 |
|
|
|
14,213 |
|
|
|
1,435 |
|
|
|
97,959 |
|
|
Amortization |
|
|
5,161 |
|
|
|
18,277 |
|
|
|
— |
|
|
|
23,438 |
|
| Adjusted
EBITDA |
|
|
151,403 |
|
|
|
43,133 |
|
|
|
(25,850 |
) |
|
|
168,686 |
|
| Revenues as
reported |
|
$ |
804,367 |
|
|
$ |
616,396 |
|
|
|
|
$ |
1,420,763 |
|
| Adjusted
EBITDA margin (%) |
|
|
18.8 |
% |
|
|
7.0 |
% |
|
|
|
|
11.9 |
% |
|
ENVIRI CORPORATIONRECONCILIATION OF
CONSOLIDATED ADJUSTED EBITDA TO CONSOLIDATED INCOME (LOSS) FROM
CONTINUING OPERATIONS AS REPORTED (Unaudited) |
|
|
| |
|
Three Months Ended September 30 |
|
(In thousands) |
|
|
2023 |
|
|
|
2022 |
|
|
Consolidated income (loss) from continuing operations |
|
$ |
(7,787 |
) |
|
$ |
1,427 |
|
| |
|
|
|
|
| Add
back (deduct): |
|
|
|
|
|
Equity in (income) loss of unconsolidated entities, net |
|
|
151 |
|
|
|
128 |
|
|
Income tax (benefit) expense |
|
|
4,109 |
|
|
|
9,376 |
|
|
Defined benefit pension expense (income) |
|
|
5,436 |
|
|
|
(2,118 |
) |
|
Facility fees and debt-related expense (income) |
|
|
2,806 |
|
|
|
2,511 |
|
|
Interest expense |
|
|
26,739 |
|
|
|
19,751 |
|
|
Interest income |
|
|
(1,679 |
) |
|
|
(952 |
) |
|
Depreciation |
|
|
35,397 |
|
|
|
31,892 |
|
|
Amortization |
|
|
7,343 |
|
|
|
7,690 |
|
| |
|
|
|
|
| Unusual
items: |
|
|
|
|
|
Corporate strategic costs |
|
|
987 |
|
|
|
346 |
|
|
Corporate contingent consideration adjustment |
|
|
(828 |
) |
|
|
— |
|
|
Harsco Environmental segment severance costs |
|
|
1,146 |
|
|
|
— |
|
|
Harsco Environmental accounts receivable provision |
|
|
5,284 |
|
|
|
— |
|
|
Clean Earth segment severance costs |
|
|
— |
|
|
|
1,092 |
|
|
Clean Earth segment contingent consideration adjustment |
|
|
— |
|
|
|
(827 |
) |
|
Consolidated Adjusted EBITDA |
|
$ |
79,104 |
|
|
$ |
70,316 |
|
|
ENVIRI CORPORATIONRECONCILIATION OF
ADJUSTED EBITDA TO CONSOLIDATED INCOME (LOSS) FROM CONTINUING
OPERATIONS AS REPORTED (Unaudited) |
|
|
| |
|
Nine Months
EndedSeptember 30 |
|
(In thousands) |
|
|
2023 |
|
|
|
2022 |
|
|
Consolidated income (loss) from continuing operations |
|
$ |
(35,016 |
) |
|
$ |
(110,352 |
) |
| |
|
|
|
|
| Add
back (deduct): |
|
|
|
|
|
Equity in (income) loss of unconsolidated entities, net |
|
|
593 |
|
|
|
373 |
|
|
Income tax (benefit) expense |
|
|
21,351 |
|
|
|
7,482 |
|
|
Defined benefit pension expense (income) |
|
|
16,178 |
|
|
|
(6,775 |
) |
|
Facility fee and debt-related expense |
|
|
7,899 |
|
|
|
894 |
|
|
Interest expense |
|
|
76,791 |
|
|
|
51,535 |
|
|
Interest income |
|
|
(4,701 |
) |
|
|
(2,289 |
) |
|
Depreciation |
|
|
102,893 |
|
|
|
97,959 |
|
|
Amortization |
|
|
21,492 |
|
|
|
23,438 |
|
| |
|
|
|
|
| Unusual
items: |
|
|
|
|
|
Corporate strategic costs |
|
|
2,253 |
|
|
|
128 |
|
|
Corporate contingent consideration adjustment |
|
|
(828 |
) |
|
|
— |
|
|
Harsco Environmental segment severance costs |
|
|
1,146 |
|
|
|
— |
|
|
Harsco Environmental segment net gain on lease incentive |
|
|
(9,782 |
) |
|
|
— |
|
|
Harsco Environmental property, plant and equipment impairment
charge |
|
|
14,099 |
|
|
|
— |
|
|
Harsco Environmental accounts receivable provision |
|
|
5,284 |
|
|
|
— |
|
|
Clean Earth segment goodwill impairment charge |
|
|
— |
|
|
|
104,580 |
|
|
Clean Earth segment severance costs |
|
|
— |
|
|
|
2,540 |
|
|
Clean Earth segment contingent consideration adjustments |
|
|
— |
|
|
|
(827 |
) |
|
Adjusted EBITDA |
|
$ |
219,652 |
|
|
$ |
168,686 |
|
| ENVIRI
CORPORATIONRECONCILIATION OF PROJECTED
CONSOLIDATED ADJUSTED EBITDA TO PROJECTED CONSOLIDATED INCOME FROM
CONTINUING OPERATIONS (a)(Unaudited) |
|
| |
|
Projected |
|
Projected |
|
| |
|
Three Months
Ending |
|
Twelve
Months Ending |
|
| |
|
December 31 |
|
December 31 |
|
| |
|
|
2023 |
|
|
|
2023 |
|
|
|
(In millions) |
|
Low |
|
High |
|
Low |
|
High |
|
|
Consolidated loss from continuing operations |
|
$ |
(15 |
) |
|
$ |
(7 |
) |
|
$ |
(49 |
) |
|
$ |
(41 |
) |
|
| |
|
|
|
|
|
|
|
|
|
| Add
back (deduct): |
|
|
|
|
|
|
|
|
|
|
Income tax (income) expense |
|
|
1 |
|
|
|
2 |
|
|
|
22 |
|
|
|
23 |
|
|
|
Facility fees and debt-related (income) expense |
|
|
3 |
|
|
|
3 |
|
|
|
11 |
|
|
|
10 |
|
|
|
Net interest |
|
|
25 |
|
|
|
24 |
|
|
|
97 |
|
|
|
97 |
|
|
|
Defined benefit pension (income) expense |
|
|
6 |
|
|
|
5 |
|
|
|
22 |
|
|
|
21 |
|
|
|
Depreciation and amortization |
|
|
43 |
|
|
|
43 |
|
|
|
167 |
|
|
|
167 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
Unusual items: |
|
|
|
|
|
|
|
|
|
|
Corporate strategic costs |
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
2 |
|
|
|
Corporate contingent consideration adjustment |
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
|
|
Harsco Environmental segment severance costs |
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
|
Harsco Environmental net gain on lease incentive |
|
|
— |
|
|
|
— |
|
|
|
(10 |
) |
|
|
(10 |
) |
|
|
Harsco Environmental property, plant and equipment impairment
charge |
|
|
— |
|
|
|
— |
|
|
|
14 |
|
|
|
14 |
|
|
|
Harsco Environmental accounts receivable provision |
|
|
— |
|
|
|
— |
|
|
|
5 |
|
|
|
5 |
|
|
|
Consolidated Adjusted EBITDA |
|
$ |
62 |
|
(b) |
$ |
69 |
|
(b) |
$ |
282 |
|
(b) |
$ |
289 |
|
(b) |
| |
- Excludes former Harsco Rail Segment
- Does not total due to rounding.
|
| ENVIRI
CORPORATION RECONCILIATION OF FREE CASH FLOW TO
NET CASH PROVIDED BY OPERATING ACTIVITIES (Unaudited) |
| |
|
Three Months
Ended |
|
Nine Months
Ended |
| |
|
September 30 |
|
September 30 |
|
(In thousands) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Net cash provided (used) by operating activities |
|
$ |
17,982 |
|
|
$ |
13,422 |
|
|
$ |
46,172 |
|
|
$ |
131,161 |
|
|
Less capital expenditures |
|
|
(27,289 |
) |
|
|
(39,854 |
) |
|
|
(93,630 |
) |
|
|
(101,645 |
) |
|
Less expenditures for intangible assets |
|
|
(51 |
) |
|
|
(47 |
) |
|
|
(478 |
) |
|
|
(147 |
) |
|
Plus capital expenditures for strategic ventures (a) |
|
|
507 |
|
|
|
920 |
|
|
|
2,458 |
|
|
|
1,428 |
|
|
Plus total proceeds from sales of assets (b) |
|
|
641 |
|
|
|
1,698 |
|
|
|
2,080 |
|
|
|
8,289 |
|
|
Plus transaction-related expenditures (c) |
|
|
917 |
|
|
|
758 |
|
|
|
1,045 |
|
|
|
1,854 |
|
|
Harsco Rail free cash flow deficit/(benefit) |
|
|
17,452 |
|
|
|
(8,161 |
) |
|
|
41,137 |
|
|
|
30,827 |
|
| Free cash
flow |
|
$ |
10,159 |
|
|
$ |
(31,264 |
) |
|
$ |
(1,216 |
) |
|
$ |
71,767 |
|
| |
- Capital expenditures for strategic
ventures represent the partner’s share of capital expenditures in
certain ventures consolidated in the Company’s condensed
consolidated financial statements.
- Asset sales are a normal part of
the business model, primarily for the Harsco Environmental
segment.
- Expenditures directly related to
the Company's divestiture transactions and other strategic costs
incurred at Corporate.
|
|
ENVIRI CORPORATIONRECONCILIATION OF
PROJECTED FREE CASH FLOW TO PROJECTED NET CASH PROVIDED BY
OPERATING ACTIVITIES (a)(Unaudited) |
| |
|
ProjectedTwelve Months
EndingDecember 31 |
| |
|
|
2023 |
|
|
(In millions) |
|
Low |
|
High |
|
Net cash provided by operating activities |
|
$ |
145 |
|
|
$ |
165 |
|
| Less net
capital / intangible asset expenditures |
|
|
(125 |
) |
|
|
(135 |
) |
| Plus capital
expenditures for strategic ventures |
|
|
4 |
|
|
|
4 |
|
| Plus
transaction-related expenditures |
|
|
1 |
|
|
|
1 |
|
| Free cash
flow |
|
$ |
25 |
|
|
$ |
35 |
|
|
|
- Excludes former Harsco Rail Segment
|
|
Investor Contact David
Martin+1.267.946.1407dmartin@enviri.com |
Media ContactJay Cooney+1.267.857.8017jcooney@enviri.com |
Enviri (NYSE:NVRI)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Enviri (NYSE:NVRI)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024
