Date of Report (Date of earliest event reported) February 29, 2024 | ||||||||||||||
Enviri Corporation | ||||||||||||||
(Exact name of registrant as specified in its charter) | ||||||||||||||
Delaware | 001-03970 | 23-1483991 | ||||||||||||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
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Two Logan Square
100-120 North 18th Street, 17th Floor, Philadelphia, Pennsylvania
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19103 | |||||||||||||
(Address of principal executive offices) | (Zip Code) | |||||||||||||
Registrant’s telephone number, including area code (267) 857-8715 | ||||||||||||||
(Former name or former address, if changed since last report.) |
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common stock, par value $1.25 per share | NVRI | New York Stock Exchange |
Exhibit 99.1 |
Enviri Corporation | |||||||||||
Date: | February 29, 2024 |
/s/ TOM VADAKETH | |||||||||
Tom Vadaketh | |||||||||||
Senior Vice President and Chief Financial Officer |
Investor Contact | Media Contact | ||||
David Martin | Jay Cooney | ||||
+1.267.946.1407 | +1.267.857.8017 | ||||
dmartin@enviri.com | jcooney@enviri.com |
($ in millions, except per share amounts) | Q4 2023 | Q4 2022 | ||||||||||||
Revenues | $ | 529 | $ | 468 | ||||||||||
Operating income/(loss) from continuing operations - GAAP | $ | 28 | $ | 2 | ||||||||||
Diluted EPS from continuing operations - GAAP | $ | (0.17) | $ | (0.30) | ||||||||||
Adjusted EBITDA - Non GAAP | $ | 73 | $ | 61 | ||||||||||
Adjusted EBITDA margin - Non GAAP | 13.9 | % | 12.9 | % | ||||||||||
Adjusted diluted EPS from continuing operations - Non GAAP | $ | (0.07) | $ | 0.01 | ||||||||||
($ in millions, except per share amounts) | 2023 | 2022 | ||||||||||||
Revenues | $ | 2,069 | $ | 1,889 | ||||||||||
Operating income (loss) from continuing operations - GAAP | $ | 111 | $ | (57) | ||||||||||
Diluted EPS from continuing operations - GAAP | $ | (0.57) | $ | (1.73) | ||||||||||
Adjusted EBITDA - excluding unusual items | $ | 293 | $ | 229 | ||||||||||
Adjusted EBITDA margin - excluding unusual items | 14.2 | % | 12.1 | % | ||||||||||
Adjusted diluted EPS from continuing operations - excluding unusual items | $ | (0.12) | $ | 0.10 | ||||||||||
($ in millions) | Q4 2023 | Q4 2022 | ||||||||||||
Revenues | $ | 292 | $ | 257 | ||||||||||
Operating income - GAAP | $ | 25 | $ | (4) | ||||||||||
Adjusted EBITDA - Non GAAP | $ | 56 | $ | 43 | ||||||||||
Adjusted EBITDA margin - Non GAAP | 19.3 | % | 16.7 | % | ||||||||||
($ in millions) | Q4 2023 | Q4 2022 | ||||||||||||
Revenues | $ | 237 | $ | 211 | ||||||||||
Operating income - GAAP | $ | 16 | $ | 14 | ||||||||||
Adjusted EBITDA - Non GAAP | $ | 29 | $ | 25 | ||||||||||
Adjusted EBITDA margin - Non GAAP | 12.2 | % | 11.6 | % |
2024 Full Year Outlook (Continuing Operations) |
|||||
GAAP Operating Income | $122 - $142 million | ||||
Adjusted EBITDA | $300 - $320 million | ||||
GAAP Diluted Earnings/(Loss) Per Share from Continuing Operations | $(0.28) - $(0.52) | ||||
Adjusted Diluted Earnings/(Loss) Per Share from Continuing Operations | $(0.00) - $(0.25) | ||||
Free Cash Flow | $20 - $40 million | ||||
Net Interest Expense | $103 - $108 million | ||||
Account Receivable Securitization Fees | $10 - $11 million | ||||
Pension Expense (Non-Operating) | $17 million | ||||
Tax Expense, Excluding Any Unusual Items | $23 - $29 million | ||||
Net Capital Expenditures | $130 - $140 million | ||||
Q1 2024 Outlook (Continuing Operations) |
|||||
GAAP Operating Income | $19 - $26 million | ||||
Adjusted EBITDA | $63 - $70 million | ||||
GAAP Diluted Earnings/(Loss) Per Share from Continuing Operations | $(0.12) - $(0.20) | ||||
Adjusted Diluted Earnings/(Loss) Per Share from Continuing Operations | $(0.05) - $(0.13) |
ENVIRI CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
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Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||
December 31 | December 31 | |||||||||||||||||||||||||
(In thousands, except per share amounts) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Revenues from continuing operations: | ||||||||||||||||||||||||||
Revenues | $ | 528,816 | $ | 468,302 | $ | 2,069,225 | $ | 1,889,065 | ||||||||||||||||||
Costs and expenses from continuing operations: | ||||||||||||||||||||||||||
Cost of sales | 417,604 | 380,314 | 1,633,662 | 1,553,335 | ||||||||||||||||||||||
Selling, general and administrative expenses | 79,209 | 66,832 | 312,383 | 268,066 | ||||||||||||||||||||||
Research and development expenses | 339 | 145 | 1,286 | 690 | ||||||||||||||||||||||
Goodwill and other intangible asset impairment charges | — | 15,000 | — | 119,580 | ||||||||||||||||||||||
Property, plant and equipment impairment charge | — | — | 14,099 | — | ||||||||||||||||||||||
Other expense (income), net | 3,745 | 4,222 | (3,219) | 4,737 | ||||||||||||||||||||||
Total costs and expenses | 500,897 | 466,513 | 1,958,211 | 1,946,408 | ||||||||||||||||||||||
Operating income (loss) from continuing operations | 27,919 | 1,789 | 111,014 | (57,343) | ||||||||||||||||||||||
Interest income | 1,969 | 1,270 | 6,670 | 3,559 | ||||||||||||||||||||||
Interest expense | (27,081) | (23,621) | (103,872) | (75,156) | ||||||||||||||||||||||
Facility fees and debt-related income (expense) | (2,863) | (2,062) | (10,762) | (2,956) | ||||||||||||||||||||||
Defined benefit pension income (expense) | (5,422) | 2,163 | (21,600) | 8,938 | ||||||||||||||||||||||
Income (loss) from continuing operations before income taxes and equity income | (5,478) | (20,461) | (18,550) | (122,958) | ||||||||||||||||||||||
Income tax benefit (expense) from continuing operations | (6,834) | (2,899) | (28,185) | (10,381) | ||||||||||||||||||||||
Equity income (loss) of unconsolidated entities, net | (168) | 195 | (761) | (178) | ||||||||||||||||||||||
Income (loss) from continuing operations | (12,480) | (23,165) | (47,496) | (133,517) | ||||||||||||||||||||||
Discontinued operations: | ||||||||||||||||||||||||||
Income (loss) from discontinued businesses | (44,110) | (15,076) | (39,252) | (50,301) | ||||||||||||||||||||||
Income tax benefit (expense) from discontinued businesses | 3,014 | 2,105 | (1,350) | 7,387 | ||||||||||||||||||||||
Income (loss) from discontinued operations, net of tax | (41,096) | (12,971) | (40,602) | (42,914) | ||||||||||||||||||||||
Net income (loss) | (53,576) | (36,136) | (88,098) | (176,431) | ||||||||||||||||||||||
Less: Net loss (income) attributable to noncontrolling interests | (779) | (582) | 1,977 | (3,638) | ||||||||||||||||||||||
Net income (loss) attributable to Enviri Corporation | $ | (54,355) | $ | (36,718) | $ | (86,121) | $ | (180,069) | ||||||||||||||||||
Amounts attributable to Enviri Corporation common stockholders: | ||||||||||||||||||||||||||
Income (loss) from continuing operations, net of tax | $ | (13,259) | $ | (23,747) | $ | (45,519) | $ | (137,155) | ||||||||||||||||||
Income (loss) from discontinued operations, net of tax | (41,096) | (12,971) | (40,602) | (42,914) | ||||||||||||||||||||||
Net income (loss) attributable to Enviri Corporation common stockholders | $ | (54,355) | $ | (36,718) | $ | (86,121) | $ | (180,069) | ||||||||||||||||||
Weighted-average shares of common stock outstanding | 79,881 | 79,564 | 79,796 | 79,493 | ||||||||||||||||||||||
Basic earnings (loss) per common share attributable to Enviri Corporation common stockholders: | ||||||||||||||||||||||||||
Continuing operations | $ | (0.17) | $ | (0.30) | $ | (0.57) | $ | (1.73) | ||||||||||||||||||
Discontinued operations | $ | (0.51) | $ | (0.16) | $ | (0.51) | $ | (0.54) | ||||||||||||||||||
Basic earnings (loss) per share attributable to Enviri Corporation common stockholders | $ | (0.68) | $ | (0.46) | $ | (1.08) | $ | (2.27) | ||||||||||||||||||
Diluted weighted-average shares of common stock outstanding | 79,881 | 79,564 | 79,796 | 79,493 | ||||||||||||||||||||||
Diluted earnings (loss) per common share attributable to Enviri Corporation common stockholders: | ||||||||||||||||||||||||||
Continuing operations | $ | (0.17) | $ | (0.30) | $ | (0.57) | $ | (1.73) | ||||||||||||||||||
Discontinued operations | $ | (0.51) | $ | (0.16) | $ | (0.51) | $ | (0.54) | ||||||||||||||||||
Diluted earnings (loss) per share attributable to Enviri Corporation common stockholders | $ | (0.68) | $ | (0.46) | $ | (1.08) | $ | (2.27) | ||||||||||||||||||
ENVIRI CORPORATION
CONSOLIDATED BALANCE SHEETS
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(In thousands) |
December 31 2023 |
December 31 2022 |
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ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 121,239 | $ | 81,332 | ||||||||||
Restricted cash | 3,375 | 3,762 | ||||||||||||
Trade accounts receivable, net | 280,772 | 264,428 | ||||||||||||
Other receivables | 33,857 | 25,379 | ||||||||||||
Inventories | 86,292 | 81,375 | ||||||||||||
Prepaid expenses |
29,926 | 30,583 | ||||||||||||
Current portion of assets held-for-sale | 255,428 | 266,335 | ||||||||||||
Other current assets | 16,467 | 14,541 | ||||||||||||
Total current assets | 827,356 | 767,735 | ||||||||||||
Property, plant and equipment, net | 663,284 | 656,875 | ||||||||||||
Right-of-use assets, net |
95,841 | 101,253 | ||||||||||||
Goodwill | 767,952 | 759,253 | ||||||||||||
Intangible assets, net | 324,861 | 352,160 | ||||||||||||
Deferred income tax assets | 15,322 | 17,489 | ||||||||||||
Assets held-for-sale |
90,930 | 70,105 | ||||||||||||
Other assets | 69,006 | 65,984 | ||||||||||||
Total assets | $ | 2,854,552 | $ | 2,790,854 | ||||||||||
LIABILITIES | ||||||||||||||
Current liabilities: | ||||||||||||||
Short-term borrowings | $ | 14,871 | $ | 7,751 | ||||||||||
Current maturities of long-term debt | 15,558 | 11,994 | ||||||||||||
Accounts payable | 198,576 | 205,577 | ||||||||||||
Accrued compensation | 73,553 | 43,595 | ||||||||||||
Income taxes payable | 6,133 | 3,640 | ||||||||||||
Current portion of operating lease liabilities |
25,119 | 25,521 | ||||||||||||
Current portion of liabilities of assets held-for-sale |
172,036 | 159,004 | ||||||||||||
Other current liabilities | 149,387 | 140,199 | ||||||||||||
Total current liabilities | 655,233 | 597,281 | ||||||||||||
Long-term debt | 1,401,437 | 1,336,995 | ||||||||||||
Retirement plan liabilities | 45,087 | 46,601 | ||||||||||||
Operating lease liabilities |
72,145 | 75,246 | ||||||||||||
Liabilities of assets held-for-sale |
4,029 | 9,463 | ||||||||||||
Environmental liabilities | 25,682 | 26,880 | ||||||||||||
Deferred tax liabilities | 28,810 | 30,069 | ||||||||||||
Other liabilities | 46,721 | 45,277 | ||||||||||||
Total liabilities | 2,279,144 | 2,167,812 | ||||||||||||
ENVIRI CORPORATION STOCKHOLDERS’ EQUITY | ||||||||||||||
Common stock | 146,105 | 145,448 | ||||||||||||
Additional paid-in capital | 238,416 | 225,759 | ||||||||||||
Accumulated other comprehensive loss | (539,694) | (567,636) | ||||||||||||
Retained earnings | 1,528,320 | 1,614,441 | ||||||||||||
Treasury stock | (849,996) | (848,570) | ||||||||||||
Total Enviri Corporation stockholders’ equity | 523,151 | 569,442 | ||||||||||||
Noncontrolling interests | 52,257 | 53,600 | ||||||||||||
Total equity | 575,408 | 623,042 | ||||||||||||
Total liabilities and equity | $ | 2,854,552 | $ | 2,790,854 |
ENVIRI CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
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Three Months Ended December 31 |
Twelve Months Ended December 31 |
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(In thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||||
Net income (loss) | $ | (53,576) | $ | (36,136) | $ | (88,098) | $ | (176,431) | ||||||||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||||||||||||||
Depreciation | 36,063 | 31,753 | 138,956 | 129,712 | ||||||||||||||||||||||
Amortization | 8,081 | 8,532 | 32,408 | 34,137 | ||||||||||||||||||||||
Deferred income tax (benefit) expense | (1,132) | 27 | 1,066 | (12,029) | ||||||||||||||||||||||
Equity (income) loss of unconsolidated entities, net | 168 | (195) | 761 | 178 | ||||||||||||||||||||||
Dividends from unconsolidated entities | — | — | — | 526 | ||||||||||||||||||||||
(Gain) loss on early extinguishment of debt | — | — | — | (2,254) | ||||||||||||||||||||||
Goodwill and other intangible asset impairment charges | — | 15,000 | — | 119,580 | ||||||||||||||||||||||
Property, plant and equipment impairment charge | — | — | 14,099 | — | ||||||||||||||||||||||
Other, net | 5,424 | (808) | 10,167 | (427) | ||||||||||||||||||||||
Changes in assets and liabilities, net of acquisitions and dispositions of businesses: | ||||||||||||||||||||||||||
Accounts receivable | 9,277 | 19,323 | (38,889) | 94,317 | ||||||||||||||||||||||
Income tax refunds receivable, reimbursable to seller | — | — | — | 7,687 | ||||||||||||||||||||||
Inventories | 7,138 | (5,459) | (3,410) | (16,798) | ||||||||||||||||||||||
Contract assets | 2,158 | 1,954 | 3,475 | 11,543 | ||||||||||||||||||||||
Right-of-use assets | 8,012 | 7,342 | 32,479 | 29,171 | ||||||||||||||||||||||
Accounts payable | (4,272) | 6,234 | (5,090) | 19,264 | ||||||||||||||||||||||
Accrued interest payable | 7,049 | 6,916 | 221 | (643) | ||||||||||||||||||||||
Accrued compensation | 13,435 | 1,614 | 33,871 | (3,945) | ||||||||||||||||||||||
Advances on contracts | 7,664 | (5,360) | (14,160) | (11,347) | ||||||||||||||||||||||
Operating lease liabilities | (7,718) | (6,876) | (30,698) | (28,374) | ||||||||||||||||||||||
Retirement plan liabilities, net | 894 | (6,307) | (3,968) | (34,136) | ||||||||||||||||||||||
Other assets and liabilities | 29,611 | (18,188) | 31,258 | (9,204) | ||||||||||||||||||||||
Net cash provided (used) by operating activities | 68,276 | 19,366 | 114,448 | 150,527 | ||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||
Purchases of property, plant and equipment | (45,395) | (35,515) | (139,025) | (137,160) | ||||||||||||||||||||||
Proceeds from sales of assets | 4,911 | 2,470 | 6,991 | 10,759 | ||||||||||||||||||||||
Expenditures for intangible assets | (25) | (37) | (503) | (184) | ||||||||||||||||||||||
Proceeds from note receivable | — | — | 11,238 | 8,605 | ||||||||||||||||||||||
Net proceeds (payments) from settlement of foreign currency forward exchange contracts | 2,217 | 7,379 | 4,251 | 20,950 | ||||||||||||||||||||||
Proceeds (payments) for settlements of interest rate swaps | — | 282 | — | (2,304) | ||||||||||||||||||||||
Other investing activities, net | 1 | 53 | 463 | 273 | ||||||||||||||||||||||
Net cash used by investing activities | (38,291) | (25,368) | (116,585) | (99,061) | ||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||
Short-term borrowings, net | 2,831 | 607 | 7,027 | 884 | ||||||||||||||||||||||
Current maturities and long-term debt: | ||||||||||||||||||||||||||
Additions | 16,005 | 65,016 | 201,997 | 224,445 | ||||||||||||||||||||||
Reductions | (23,953) | (57,479) | (164,475) | (256,310) | ||||||||||||||||||||||
Contributions from noncontrolling interests | — | — | 1,654 | — | ||||||||||||||||||||||
Dividends paid to noncontrolling interests | (5) | — | (5) | (4,841) | ||||||||||||||||||||||
Sale of noncontrolling interests | — | — | — | 1,901 | ||||||||||||||||||||||
Stock-based compensation - Employee taxes paid | (52) | (132) | (1,426) | (1,949) | ||||||||||||||||||||||
Payment of contingent consideration | — | — | — | (6,915) | ||||||||||||||||||||||
Net cash (used) provided by financing activities | (5,174) | 8,012 | 44,772 | (42,785) | ||||||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents, including restricted cash | 1,116 | (1,953) | (3,115) | (10,715) | ||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents, including restricted cash | 25,927 | 57 | 39,520 | (2,034) | ||||||||||||||||||||||
Cash and cash equivalents, including restricted cash, at beginning of period | 98,687 | 85,037 | 85,094 | 87,128 | ||||||||||||||||||||||
Cash and cash equivalents, including restricted cash, at end of period | $ | 124,614 | $ | 85,094 | $ | 124,614 | $ | 85,094 |
ENVIRI CORPORATION
REVIEW OF OPERATIONS BY SEGMENT (Unaudited)
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Three Months Ended | ||||||||||||||||||||||||||
December 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||
(In thousands) | Revenues | Operating Income (Loss) |
Revenues | Operating Income (Loss) | ||||||||||||||||||||||
Harsco Environmental | $ | 292,245 | $ | 24,750 | $ | 256,872 | $ | (4,372) | ||||||||||||||||||
Clean Earth | 236,571 | 15,972 | 211,430 | 13,865 | ||||||||||||||||||||||
Corporate | — | (12,803) | — | (7,704) | ||||||||||||||||||||||
Consolidated Totals | $ | 528,816 | $ | 27,919 | $ | 468,302 | $ | 1,789 | ||||||||||||||||||
Twelve Months Ended | ||||||||||||||||||||||||||
December 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||
(In thousands) | Revenues | Operating Income (Loss) |
Revenues | Operating Income (Loss) | ||||||||||||||||||||||
Harsco Environmental | $ | 1,140,904 | $ | 77,635 | $ | 1,061,239 | $ | 59,559 | ||||||||||||||||||
Clean Earth | 928,321 | 76,974 | 827,826 | (81,785) | ||||||||||||||||||||||
Corporate | — | (43,595) | — | (35,117) | ||||||||||||||||||||||
Consolidated Totals | $ | 2,069,225 | $ | 111,014 | $ | 1,889,065 | $ | (57,343) |
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 | Twelve Months Ended | ||||||||||||||||||||||||||||
December 31 | December 31 | ||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||
Diluted earnings (loss) per share from continuing operations, as reported | $ | (0.17) | $ | (0.30) | $ | (0.57) | $ | (1.73) | |||||||||||||||||||||
Facility fees and debt-related expense (income) (a) | — | — | — | (0.01) | |||||||||||||||||||||||||
Corporate strategic costs (b) | 0.01 | — | 0.03 | — | |||||||||||||||||||||||||
Corporate contingent consideration adjustment (c) | — | — | (0.01) | — | |||||||||||||||||||||||||
Harsco Environmental segment other intangible asset impairment charge (d) | — | 0.19 | — | 0.19 | |||||||||||||||||||||||||
Harsco Environmental segment severance costs (e) | — | 0.05 | 0.01 | 0.05 | |||||||||||||||||||||||||
Harsco Environmental net gain on lease incentive (f) | 0.02 | — | (0.10) | — | |||||||||||||||||||||||||
Harsco Environmental property, plant and equipment impairment charge, net of noncontrolling interest (g) | — | — | 0.10 | — | |||||||||||||||||||||||||
Harsco Environmental accounts receivable provision (h) | — | — | 0.07 | — | |||||||||||||||||||||||||
Clean Earth segment goodwill impairment charge (i) | — | — | — | 1.32 | |||||||||||||||||||||||||
Clean Earth segment severance costs (j) | — | — | — | 0.03 | |||||||||||||||||||||||||
Clean Earth segment contingent consideration adjustments (k) | — | — | — | (0.01) | |||||||||||||||||||||||||
Taxes on above unusual items (l) | — | (0.01) | 0.07 | (0.05) | |||||||||||||||||||||||||
Adjusted diluted earnings (loss) per share from continuing operations, including acquisition amortization expense | (0.14) | (0.07) | (0.40) | (0.20) | (n) | ||||||||||||||||||||||||
Acquisition amortization expense, net of tax (m) | 0.07 | 0.08 | 0.28 | 0.31 | |||||||||||||||||||||||||
Adjusted diluted earnings (loss) per share from continuing operations | $ | (0.07) | $ | 0.01 | $ | (0.12) | $ | 0.10 |
ENVIRI CORPORATION RECONCILIATION OF PROJECTED ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE FROM CONTINUING OPERATIONS TO DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS (a) (Unaudited) |
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Projected | ||||||||||||||||||||||||||
Three Months Ending | Twelve Months Ending | |||||||||||||||||||||||||
March 31 | December 31 | |||||||||||||||||||||||||
2024 | 2024 | |||||||||||||||||||||||||
Low | High | Low | High | |||||||||||||||||||||||
Diluted earnings (loss) per share from continuing operations | $ | (0.20) | $ | (0.12) | $ | (0.52) | $ | (0.28) | ||||||||||||||||||
Estimated acquisition amortization expense, net of tax | 0.07 | 0.07 | 0.28 | 0.28 | ||||||||||||||||||||||
Adjusted diluted earnings (loss) per share from continuing operations | $ | (0.13) | $ | (0.05) | $ | (0.25) | (b) | $ | — |
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 | Corporate | Consolidated Totals | ||||||||||||||||||||||
Three Months Ended December 31, 2023: | ||||||||||||||||||||||||||
Operating income (loss), as reported | $ | 24,750 | $ | 15,972 | $ | (12,803) | $ | 27,919 | ||||||||||||||||||
Corporate strategic costs | — | — | 534 | 534 | ||||||||||||||||||||||
Harsco Environmental segment net gain on lease incentive | 1,729 | — | — | 1,729 | ||||||||||||||||||||||
Operating income (loss) excluding unusual items | 26,479 | 15,972 | (12,269) | 30,182 | ||||||||||||||||||||||
Depreciation | 28,865 | 6,724 | 474 | 36,063 | ||||||||||||||||||||||
Amortization | 1,009 | 6,112 | — | 7,121 | ||||||||||||||||||||||
Adjusted EBITDA | $ | 56,353 | $ | 28,808 | $ | (11,795) | $ | 73,366 | ||||||||||||||||||
Revenues as reported | $ | 292,245 | $ | 236,571 | $ | 528,816 | ||||||||||||||||||||
Adjusted EBITDA margin (%) | 19.3 | % | 12.2 | % | 13.9 | % | ||||||||||||||||||||
Three Months Ended December 31, 2022: | ||||||||||||||||||||||||||
Operating income (loss), as reported | $ | (4,372) | $ | 13,865 | $ | (7,704) | $ | 1,789 | ||||||||||||||||||
Corporate strategic costs | — | — | 229 | 229 | ||||||||||||||||||||||
Harsco Environmental segment intangible asset impairment | 15,000 | — | — | 15,000 | ||||||||||||||||||||||
Harsco Environmental segment severance costs | 4,156 | — | — | 4,156 | ||||||||||||||||||||||
Clean Earth segment severance costs | — | 37 | — | 37 | ||||||||||||||||||||||
Operating income (loss) excluding unusual items | 14,784 | 13,902 | (7,475) | 21,211 | ||||||||||||||||||||||
Depreciation | 26,569 | 4,623 | 561 | 31,753 | ||||||||||||||||||||||
Amortization | 1,648 | 6,022 | — | 7,670 | ||||||||||||||||||||||
Adjusted EBITDA | $ | 43,001 | $ | 24,547 | $ | (6,914) | $ | 60,634 | ||||||||||||||||||
Revenues as reported | $ | 256,872 | $ | 211,430 | $ | 468,302 | ||||||||||||||||||||
Adjusted EBITDA margin (%) | 16.7 | % | 11.6 | % | 12.9 | % |
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 | Corporate | Consolidated Totals | ||||||||||||||||||||||
Twelve Months Ended December 31, 2023: | ||||||||||||||||||||||||||
Operating income (loss), as reported | $ | 77,635 | $ | 76,974 | $ | (43,595) | $ | 111,014 | ||||||||||||||||||
Corporate strategic costs | — | — | 2,787 | 2,787 | ||||||||||||||||||||||
Corporate contingent consideration adjustment | — | — | (828) | (828) | ||||||||||||||||||||||
Harsco Environmental segment severance costs | 1,146 | — | — | 1,146 | ||||||||||||||||||||||
Harsco Environmental segment net gain on lease incentive | (8,053) | — | — | (8,053) | ||||||||||||||||||||||
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 | 90,111 | 76,974 | (41,636) | 125,449 | ||||||||||||||||||||||
Depreciation | 113,571 | 23,252 | 2,133 | 138,956 | ||||||||||||||||||||||
Amortization | 4,030 | 24,583 | — | 28,613 | ||||||||||||||||||||||
Adjusted EBITDA | 207,712 | 124,809 | (39,503) | 293,018 | ||||||||||||||||||||||
Revenues as reported | $ | 1,140,904 | $ | 928,321 | $ | 2,069,225 | ||||||||||||||||||||
Adjusted EBITDA margin (%) | 18.2 | % | 13.4 | % | 14.2 | % | ||||||||||||||||||||
Twelve Months Ended December 31, 2022: | ||||||||||||||||||||||||||
Operating income (loss), as reported | $ | 59,559 | $ | (81,785) | $ | (35,117) | $ | (57,343) | ||||||||||||||||||
Corporate strategic costs | — | — | 357 | 357 | ||||||||||||||||||||||
Clean Earth segment goodwill impairment charge | — | 104,580 | — | 104,580 | ||||||||||||||||||||||
Clean Earth segment severance costs | — | 2,577 | — | 2,577 | ||||||||||||||||||||||
Clean Earth segment contingent consideration adjustment | — | (827) | — | (827) | ||||||||||||||||||||||
Harsco Environmental segment intangible asset impairment | 15,000 | — | — | 15,000 | ||||||||||||||||||||||
Harsco Environmental segment severance costs | 4,156 | — | — | 4,156 | ||||||||||||||||||||||
Operating income (loss) excluding unusual items | 78,715 | 24,545 | (34,760) | 68,500 | ||||||||||||||||||||||
Depreciation | 108,880 | 18,836 | 1,996 | 129,712 | ||||||||||||||||||||||
Amortization | 6,809 | 24,299 | — | 31,108 | ||||||||||||||||||||||
Adjusted EBITDA | 194,404 | 67,680 | (32,764) | 229,320 | ||||||||||||||||||||||
Revenues as reported | $ | 1,061,239 | $ | 827,826 | $ | 1,889,065 | ||||||||||||||||||||
Adjusted EBITDA margin (%) | 18.3 | % | 8.2 | % | 12.1 | % |
ENVIRI CORPORATION
RECONCILIATION OF CONSOLIDATED ADJUSTED EBITDA TO CONSOLIDATED INCOME (LOSS) FROM CONTINUING OPERATIONS AS REPORTED (Unaudited)
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Three Months Ended December 31 | ||||||||||||||
(In thousands) | 2023 | 2022 | ||||||||||||
Consolidated income (loss) from continuing operations | $ | (12,480) | $ | (23,165) | ||||||||||
Add back (deduct): | ||||||||||||||
Equity in (income) loss of unconsolidated entities, net | 168 | (195) | ||||||||||||
Income tax (benefit) expense | 6,834 | 2,899 | ||||||||||||
Defined benefit pension expense (income) | 5,422 | (2,163) | ||||||||||||
Facility fees and debt-related expense (income) | 2,863 | 2,062 | ||||||||||||
Interest expense | 27,081 | 23,621 | ||||||||||||
Interest income | (1,969) | (1,270) | ||||||||||||
Depreciation | 36,063 | 31,753 | ||||||||||||
Amortization | 7,121 | 7,670 | ||||||||||||
Unusual items: | ||||||||||||||
Corporate strategic costs | 534 | 229 | ||||||||||||
Harsco Environmental segment intangible asset impairment charge | — | 15,000 | ||||||||||||
Harsco Environmental segment severance costs | — | 4,156 | ||||||||||||
Harsco Environmental segment net gain on lease incentive | 1,729 | — | ||||||||||||
Clean Earth segment severance costs | — | 37 | ||||||||||||
Consolidated Adjusted EBITDA | $ | 73,366 | $ | 60,634 |
ENVIRI CORPORATION
RECONCILIATION OF ADJUSTED EBITDA TO CONSOLIDATED INCOME (LOSS) FROM CONTINUING OPERATIONS AS REPORTED (Unaudited)
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Twelve Months Ended
December 31
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(In thousands) | 2023 | 2022 | ||||||||||||
Consolidated income (loss) from continuing operations | $ | (47,496) | $ | (133,517) | ||||||||||
Add back (deduct): | ||||||||||||||
Equity in (income) loss of unconsolidated entities, net | 761 | 178 | ||||||||||||
Income tax (benefit) expense | 28,185 | 10,381 | ||||||||||||
Defined benefit pension expense (income) | 21,600 | (8,938) | ||||||||||||
Facility fee and debt-related expense | 10,762 | 2,956 | ||||||||||||
Interest expense | 103,872 | 75,156 | ||||||||||||
Interest income | (6,670) | (3,559) | ||||||||||||
Depreciation | 138,956 | 129,712 | ||||||||||||
Amortization | 28,613 | 31,108 | ||||||||||||
Unusual items: | ||||||||||||||
Corporate strategic costs | 2,787 | 357 | ||||||||||||
Corporate contingent consideration adjustment | (828) | — | ||||||||||||
Harsco Environmental segment severance costs | 1,146 | 4,156 | ||||||||||||
Harsco Environmental segment other intangible asset impairment charge | — | 15,000 | ||||||||||||
Harsco Environmental segment net gain on lease incentive | (8,053) | — | ||||||||||||
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 | — | 2,577 | ||||||||||||
Clean Earth segment contingent consideration adjustments | — | (827) | ||||||||||||
Adjusted EBITDA | $ | 293,018 | $ | 229,320 |
ENVIRI CORPORATION
RECONCILIATION OF PROJECTED CONSOLIDATED ADJUSTED EBITDA TO PROJECTED CONSOLIDATED INCOME FROM CONTINUING OPERATIONS (a) (Unaudited)
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Projected | Projected | ||||||||||||||||||||||||||||
Three Months Ending | Twelve Months Ending | ||||||||||||||||||||||||||||
March 31 | December 31 | ||||||||||||||||||||||||||||
2024 | 2024 | ||||||||||||||||||||||||||||
(In millions) | Low | High | Low | High | |||||||||||||||||||||||||
Consolidated loss from continuing operations | $ | (15) | $ | (9) | $ | (38) | $ | (18) | |||||||||||||||||||||
Add back (deduct): | |||||||||||||||||||||||||||||
Income tax (income) expense | 1 | 3 | 23 | 29 | |||||||||||||||||||||||||
Facility fees and debt-related (income) expense | 3 | 3 | 11 | 10 | |||||||||||||||||||||||||
Net interest | 26 | 25 | 108 | 103 | |||||||||||||||||||||||||
Defined benefit pension (income) expense | 5 | 4 | 17 | 17 | |||||||||||||||||||||||||
Depreciation and amortization | 44 | 44 | 178 | 178 | |||||||||||||||||||||||||
Consolidated Adjusted EBITDA | $ | 63 | (b) | $ | 70 | $ | 300 | (b) | $ | 320 | (b) |
ENVIRI CORPORATION
RECONCILIATION OF FREE CASH FLOW TO NET CASH PROVIDED BY OPERATING ACTIVITIES (Unaudited)
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Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||
December 31 | December 31 | |||||||||||||||||||||||||
(In thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Net cash provided (used) by operating activities (a) | $ | 68,276 | $ | 19,366 | $ | 114,448 | $ | 150,527 | ||||||||||||||||||
Less capital expenditures | (45,395) | (35,515) | (139,025) | (137,160) | ||||||||||||||||||||||
Less expenditures for intangible assets | (25) | (37) | (503) | (184) | ||||||||||||||||||||||
Plus capital expenditures for strategic ventures (b) | 562 | 361 | 3,020 | 1,789 | ||||||||||||||||||||||
Plus total proceeds from sales of assets (c) | 4,911 | 2,470 | 6,991 | 10,759 | ||||||||||||||||||||||
Plus transaction-related expenditures (d) | 1,625 | — | 2,670 | 1,854 | ||||||||||||||||||||||
Harsco Rail free cash flow deficit (benefit) | (4,866) | 16,783 | 36,271 | 47,610 | ||||||||||||||||||||||
Free cash flow | $ | 25,088 | $ | 3,428 | $ | 23,872 | $ | 75,195 | ||||||||||||||||||
ENVIRI CORPORATION RECONCILIATION OF PROJECTED FREE CASH FLOW TO PROJECTED NET CASH PROVIDED BY OPERATING ACTIVITIES (a) (Unaudited) | ||||||||||||||
Projected Twelve Months Ending December 31 |
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2024 | ||||||||||||||
(In millions) | Low | High | ||||||||||||
Net cash provided by operating activities | $ | 146 | $ | 176 | ||||||||||
Less net capital / intangible asset expenditures | (130) | (140) | ||||||||||||
Plus capital expenditures for strategic ventures | 4 | 4 | ||||||||||||
Free cash flow | $ | 20 | $ | 40 | ||||||||||