Date of Report (Date of earliest event reported) May 2, 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.) |
||||||||||||
Two Logan Square
100-120 North 18th Street, 17th Floor, Philadelphia, Pennsylvania
|
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 $1.25 per share | NVRI | New York Stock Exchange |
Exhibit 99.1 |
Enviri Corporation | |||||||||||
Date: | May 2, 2024 |
/s/ TOM VADAKETH | |||||||||
Tom Vadaketh | |||||||||||
Senior Vice President and Chief Financial Officer |
Investor Contact | Media Contact | ||||
David Martin | Maura Pfeiffer | ||||
+1.267.946.1407 | +1.267.964.1868 | ||||
dmartin@enviri.com | mpfeiffer@enviri.com |
($ in millions, except per share amounts) | Q1 2024 | Q1 2023 | ||||||||||||
Revenues | $ | 600 | $ | 561 | ||||||||||
Operating income/(loss) from continuing operations - GAAP | $ | 26 | $ | 32 | ||||||||||
Diluted EPS from continuing operations - GAAP | $ | (0.21) | $ | (0.11) | ||||||||||
Adjusted EBITDA - Non GAAP | $ | 78 | $ | 66 | ||||||||||
Adjusted EBITDA margin - Non GAAP | 13.0 | % | 11.7 | % | ||||||||||
Adjusted diluted EPS from continuing operations - Non GAAP | $ | (0.03) | $ | (0.10) | ||||||||||
($ in millions) | Q1 2024 | Q1 2023 | ||||||||||||
Revenues | $ | 299 | $ | 273 | ||||||||||
Operating income - GAAP | $ | 20 | $ | 22 | ||||||||||
Adjusted EBITDA - Non GAAP | $ | 49 | $ | 44 | ||||||||||
Adjusted EBITDA margin - Non GAAP | 16.5 | % | 16.1 | % | ||||||||||
($ in millions) | Q1 2024 | Q1 2023 | ||||||||||||
Revenues | $ | 226 | $ | 222 | ||||||||||
Operating income - GAAP | $ | 21 | $ | 16 | ||||||||||
Adjusted EBITDA - Non GAAP | $ | 34 | $ | 27 | ||||||||||
Adjusted EBITDA margin - Non GAAP | 15.1 | % | 12.3 | % |
($ in millions) | Q1 2024 | Q1 2023 | ||||||||||||
Revenues | $ | 75 | $ | 65 | ||||||||||
Operating income - GAAP | $ | (9) | $ | 2 | ||||||||||
Adjusted EBITDA - Non GAAP | $ | 2 | $ | 2 | ||||||||||
Adjusted EBITDA margin - Non GAAP | 2.7 | % | 2.8 | % |
2024 Full Year Outlook | Current (including Harsco Rail) | Prior (Excluding Harsco Rail) | ||||||
GAAP Operating Income | $136 - $153 million | $122 - $142 million | ||||||
Adjusted EBITDA | $325 - $342 million | $300 - $320 million | ||||||
GAAP Diluted Earnings/(Loss) Per Share from Continuing Operations | $(0.26) - $(0.47) | $(0.28) - $(0.52) | ||||||
Adjusted Diluted Earnings/(Loss) Per Share from Continuing Operations | $0.12 - $(0.09) | $(0.00) - $(0.25) | ||||||
Adjusted Free Cash Flow | $10 - $30 million | $20 - $40 million | ||||||
Net Interest Expense | $106 - $111 million | $103 - $108 million | ||||||
Account Receivable Securitization Fees | $10 - $11 million | $10 - $11 million | ||||||
Pension Expense (Non-Operating) | $17 million | $17 million | ||||||
Tax Expense, Excluding Any Unusual Items | $28 - $33 million | $23 - $29 million | ||||||
Net Capital Expenditures | $130 - $140 million | $130 - $140 million | ||||||
Q2 2024 Outlook | ||||||||
GAAP Operating Income | $33 - $40 million | |||||||
Adjusted EBITDA | $78 - $85 million | |||||||
GAAP Diluted Earnings/(Loss) Per Share from Continuing Operations | $(0.04) - $(0.11) | |||||||
Adjusted Diluted Earnings/(Loss) Per Share from Continuing Operations | $0.03 - $(0.05) |
ENVIRI CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
|
||||||||||||||
Three Months Ended | ||||||||||||||
March 31 | ||||||||||||||
(In thousands, except per share amounts) | 2024 | 2023 | ||||||||||||
Revenues from continuing operations: | ||||||||||||||
Service revenues | $ | 499,154 | $ | 461,560 | ||||||||||
Product revenues | 101,163 | 99,145 | ||||||||||||
Total revenues | 600,317 | 560,705 | ||||||||||||
Costs and expenses from continuing operations: | ||||||||||||||
Cost of services sold | 392,852 | 369,508 | ||||||||||||
Cost of products sold | 85,410 | 82,549 | ||||||||||||
Selling, general and administrative expenses | 87,126 | 81,861 | ||||||||||||
Research and development expenses | 861 | 520 | ||||||||||||
Remeasurement of long-lived assets | 10,695 | — | ||||||||||||
Other expense (income), net | (2,440) | (5,648) | ||||||||||||
Total costs and expenses | 574,504 | 528,790 | ||||||||||||
Operating income (loss) from continuing operations | 25,813 | 31,915 | ||||||||||||
Interest income | 1,697 | 1,480 | ||||||||||||
Interest expense | (28,122) | (24,995) | ||||||||||||
Facility fees and debt-related income (expense) | (2,789) | (2,363) | ||||||||||||
Defined benefit pension income (expense) | (4,176) | (5,329) | ||||||||||||
Income (loss) from continuing operations before income taxes and equity income | (7,577) | 708 | ||||||||||||
Income tax benefit (expense) from continuing operations | (7,915) | (8,017) | ||||||||||||
Equity income (loss) of unconsolidated entities, net | (249) | (133) | ||||||||||||
Income (loss) from continuing operations | (15,741) | (7,442) | ||||||||||||
Discontinued operations: | ||||||||||||||
Income (loss) from discontinued businesses | (1,492) | (1,655) | ||||||||||||
Income tax benefit (expense) from discontinued businesses | 387 | 507 | ||||||||||||
Income (loss) from discontinued operations, net of tax | (1,105) | (1,148) | ||||||||||||
Net income (loss) | (16,846) | (8,590) | ||||||||||||
Less: Net loss (income) attributable to noncontrolling interests | (1,116) | (935) | ||||||||||||
Net income (loss) attributable to Enviri Corporation | $ | (17,962) | $ | (9,525) | ||||||||||
Amounts attributable to Enviri Corporation common stockholders: | ||||||||||||||
Income (loss) from continuing operations, net of tax | $ | (16,857) | $ | (8,377) | ||||||||||
Income (loss) from discontinued operations, net of tax | (1,105) | (1,148) | ||||||||||||
Net income (loss) attributable to Enviri Corporation common stockholders | $ | (17,962) | $ | (9,525) | ||||||||||
Weighted-average shares of common stock outstanding | 79,945 | 79,633 | ||||||||||||
Basic earnings (loss) per common share attributable to Enviri Corporation common stockholders: | ||||||||||||||
Continuing operations | $ | (0.21) | $ | (0.11) | ||||||||||
Discontinued operations | (0.01) | (0.01) | ||||||||||||
Basic earnings (loss) per share attributable to Enviri Corporation common stockholders | $ | (0.22) | $ | (0.12) | ||||||||||
Diluted weighted-average shares of common stock outstanding | 79,945 | 79,633 | ||||||||||||
Diluted earnings (loss) per common share attributable to Enviri Corporation common stockholders: | ||||||||||||||
Continuing operations | $ | (0.21) | $ | (0.11) | ||||||||||
Discontinued operations | (0.01) | (0.01) | ||||||||||||
Diluted earnings (loss) per share attributable to Enviri Corporation common stockholders | $ | (0.22) | $ | (0.12) | ||||||||||
ENVIRI CORPORATION
CONSOLIDATED BALANCE SHEETS
|
||||||||||||||
(In thousands) |
March 31 2024 |
December 31 2023 |
||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 103,876 | $ | 121,239 | ||||||||||
Restricted cash | 3,532 | 3,375 | ||||||||||||
Trade accounts receivable, net | 308,213 | 338,187 | ||||||||||||
Other receivables | 33,693 | 40,565 | ||||||||||||
Inventories | 190,288 | 189,369 | ||||||||||||
Current portion of contract assets | 69,057 | 64,875 | ||||||||||||
Prepaid expenses |
53,081 | 58,723 | ||||||||||||
Current portion of assets held-for-sale | 8,282 | 195 | ||||||||||||
Other current assets | 13,627 | 10,828 | ||||||||||||
Total current assets | 783,649 | 827,356 | ||||||||||||
Property, plant and equipment, net | 688,638 | 707,397 | ||||||||||||
Right-of-use assets, net |
102,278 | 102,891 | ||||||||||||
Goodwill | 771,404 | 780,978 | ||||||||||||
Intangible assets, net | 319,522 | 327,983 | ||||||||||||
Deferred income tax assets | 15,884 | 16,295 | ||||||||||||
Assets held-for-sale |
8,873 | — | ||||||||||||
Other assets | 100,030 | 91,798 | ||||||||||||
Total assets | $ | 2,790,278 | $ | 2,854,698 | ||||||||||
LIABILITIES | ||||||||||||||
Current liabilities: | ||||||||||||||
Short-term borrowings | $ | 3,251 | $ | 14,871 | ||||||||||
Current maturities of long-term debt | 16,021 | 15,558 | ||||||||||||
Accounts payable | 224,509 | 243,279 | ||||||||||||
Accrued compensation | 52,947 | 79,609 | ||||||||||||
Income taxes payable | 5,172 | 7,567 | ||||||||||||
Reserve for forward losses on contracts | 46,592 | 52,919 | ||||||||||||
Current portion of advances on contracts | 35,965 | 38,313 | ||||||||||||
Current portion of operating lease liabilities |
28,569 | 28,775 | ||||||||||||
Current portion of liabilities of assets held-for-sale |
2,342 | — | ||||||||||||
Other current liabilities | 162,415 | 174,342 | ||||||||||||
Total current liabilities | 577,783 | 655,233 | ||||||||||||
Long-term debt | 1,444,883 | 1,401,437 | ||||||||||||
Retirement plan liabilities | 44,866 | 45,087 | ||||||||||||
Operating lease liabilities |
75,151 | 75,476 | ||||||||||||
Environmental liabilities | 25,253 | 25,682 | ||||||||||||
Deferred tax liabilities | 33,651 | 29,160 | ||||||||||||
Other liabilities | 42,567 | 47,215 | ||||||||||||
Total liabilities | 2,244,154 | 2,279,290 | ||||||||||||
ENVIRI CORPORATION STOCKHOLDERS’ EQUITY | ||||||||||||||
Common stock | 146,548 | 146,105 | ||||||||||||
Additional paid-in capital | 241,833 | 238,416 | ||||||||||||
Accumulated other comprehensive loss | (546,532) | (539,694) | ||||||||||||
Retained earnings | 1,510,358 | 1,528,320 | ||||||||||||
Treasury stock | (851,266) | (849,996) | ||||||||||||
Total Enviri Corporation stockholders’ equity | 500,941 | 523,151 | ||||||||||||
Noncontrolling interests | 45,183 | 52,257 | ||||||||||||
Total equity | 546,124 | 575,408 | ||||||||||||
Total liabilities and equity | $ | 2,790,278 | $ | 2,854,698 |
ENVIRI CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
| ||||||||||||||
Three Months Ended March 31 |
||||||||||||||
(In thousands) | 2024 | 2023 | ||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net income (loss) | $ | (16,846) | $ | (8,590) | ||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||
Depreciation | 36,920 | 33,039 | ||||||||||||
Amortization | 8,174 | 7,965 | ||||||||||||
Deferred income tax (benefit) expense | 3,445 | (56) | ||||||||||||
Equity (income) loss of unconsolidated entities, net | 249 | 133 | ||||||||||||
Remeasurement of long-lived assets | 10,695 | — | ||||||||||||
Other, net | 772 | 1,009 | ||||||||||||
Changes in assets and liabilities, net of acquisitions and dispositions of businesses: | ||||||||||||||
Accounts receivable | 24,426 | (14,533) | ||||||||||||
Inventories | (5,297) | (8,534) | ||||||||||||
Contract assets | (9,199) | 11,698 | ||||||||||||
Right-of-use assets | 8,599 | 7,842 | ||||||||||||
Accounts payable | (13,751) | 17,735 | ||||||||||||
Accrued interest payable | (6,820) | (6,998) | ||||||||||||
Accrued compensation | (25,531) | 7,343 | ||||||||||||
Advances on contracts | (1,618) | (5,591) | ||||||||||||
Operating lease liabilities | (8,212) | (7,202) | ||||||||||||
Retirement plan liabilities, net | (340) | 814 | ||||||||||||
Other assets and liabilities | (4,318) | 838 | ||||||||||||
Net cash (used) provided by operating activities | 1,348 | 36,912 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||
Purchases of property, plant and equipment | (26,881) | (22,146) | ||||||||||||
Proceeds from sales of assets | 4,313 | 823 | ||||||||||||
Expenditures for intangible assets | (77) | (36) | ||||||||||||
Net proceeds (payments) from settlement of foreign currency forward exchange contracts | (602) | (1,212) | ||||||||||||
Other investing activities, net | 1 | 32 | ||||||||||||
Net cash used by investing activities | (23,246) | (22,539) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||
Short-term borrowings, net | (9,003) | (3,029) | ||||||||||||
Current maturities and long-term debt: | ||||||||||||||
Additions | 35,323 | 59,000 | ||||||||||||
Reductions | (4,967) | (57,200) | ||||||||||||
Contributions from noncontrolling interests | 874 | — | ||||||||||||
Dividends paid to noncontrolling interests | (8,243) | — | ||||||||||||
Stock-based compensation - Employee taxes paid | (1,040) | (930) | ||||||||||||
Other financing activities, net | (1) | — | ||||||||||||
Net cash (used) provided by financing activities | 12,943 | (2,159) | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents, including restricted cash | (8,251) | (1,072) | ||||||||||||
Net increase (decrease) in cash and cash equivalents, including restricted cash | (17,206) | 11,142 | ||||||||||||
Cash and cash equivalents, including restricted cash, at beginning of period | 124,614 | 85,094 | ||||||||||||
Cash and cash equivalents, including restricted cash, at end of period | $ | 107,408 | $ | 96,236 |
ENVIRI CORPORATION
REVIEW OF OPERATIONS BY SEGMENT (Unaudited)
| ||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||
March 31, 2024 | March 31, 2023 | |||||||||||||||||||||||||
(In thousands) | Revenues | Operating Income (Loss) |
Revenues | Operating Income (Loss) | ||||||||||||||||||||||
Harsco Environmental | $ | 299,119 | $ | 19,588 | $ | 273,189 | $ | 22,285 | ||||||||||||||||||
Clean Earth | 226,030 | 20,593 | 222,464 | 16,471 | ||||||||||||||||||||||
Harsco Rail | 75,168 | (9,061) | 65,052 | 2,345 | ||||||||||||||||||||||
Corporate | — | (5,307) | — | (9,186) | ||||||||||||||||||||||
Consolidated Totals | $ | 600,317 | $ | 25,813 | $ | 560,705 | $ | 31,915 |
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 | |||||||||||||||||
March 31 | |||||||||||||||||
2024 | 2023 | ||||||||||||||||
Diluted earnings (loss) per share from continuing operations, as reported | $ | (0.21) | $ | (0.11) | |||||||||||||
Corporate strategic costs (a) | 0.01 | 0.01 | |||||||||||||||
Corporate net gain on sale of assets (b) | (0.04) | — | |||||||||||||||
Harsco Environmental segment net gain on lease incentive (c) | — | (0.09) | |||||||||||||||
Harsco Rail segment remeasurement of long-lived assets (d) | 0.13 | — | |||||||||||||||
Harsco Rail segment severance cost adjustment (e) | — | (0.01) | |||||||||||||||
Taxes on above unusual items (f) | 0.01 | 0.02 | |||||||||||||||
Adjusted diluted earnings (loss) per share from continuing operations, including acquisition amortization expense | (0.10) | (0.17) | (h) | ||||||||||||||
Acquisition amortization expense, net of tax (g) | 0.07 | 0.07 | |||||||||||||||
Adjusted diluted earnings (loss) per share from continuing operations | $ | (0.03) | $ | (0.10) |
ENVIRI CORPORATION RECONCILIATION OF PROJECTED ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE FROM CONTINUING OPERATIONS TO DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS (Unaudited) |
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Projected | ||||||||||||||||||||||||||
Three Months Ending | Twelve Months Ending | |||||||||||||||||||||||||
June 30 | December 31 | |||||||||||||||||||||||||
2024 | 2024 | |||||||||||||||||||||||||
Low | High | Low | High | |||||||||||||||||||||||
Diluted earnings (loss) per share from continuing operations | $ | (0.11) | $ | (0.04) | $ | (0.47) | $ | (0.26) | ||||||||||||||||||
Corporate strategic costs | — | — | 0.01 | 0.01 | ||||||||||||||||||||||
Corporate net gain on sale of assets | — | — | (0.04) | (0.04) | ||||||||||||||||||||||
Harsco Rail segment remeasurement of long-lived assets | — | — | 0.13 | 0.13 | ||||||||||||||||||||||
Taxes on above unusual items | — | — | 0.01 | 0.01 | ||||||||||||||||||||||
Adjusted diluted earnings (loss) per share from continuing operations, including acquisition amortization expense | (0.11) | (0.04) | (0.36) | (0.15) | ||||||||||||||||||||||
Estimated acquisition amortization expense, net of tax | 0.07 | 0.07 | 0.27 | 0.27 | ||||||||||||||||||||||
Adjusted diluted earnings (loss) per share from continuing operations | $ | (0.05) | (a) | $ | 0.03 | $ | (0.09) | $ | 0.12 |
ENVIRI CORPORATION
RECONCILIATION OF ADJUSTED EBITDA BY SEGMENT TO OPERATING INCOME (LOSS) AS REPORTED BY SEGMENT (Unaudited)
|
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(In thousands) | Harsco Environmental | Clean Earth | Harsco Rail | Corporate | Consolidated Totals | |||||||||||||||||||||||||||
Three Months Ended March 31, 2024: | ||||||||||||||||||||||||||||||||
Operating income (loss), as reported | $ | 19,588 | $ | 20,593 | $ | (9,061) | $ | (5,307) | $ | 25,813 | ||||||||||||||||||||||
Corporate strategic costs | — | — | — | 681 | 681 | |||||||||||||||||||||||||||
Corporate net gain on sale of assets | — | — | — | (3,281) | (3,281) | |||||||||||||||||||||||||||
Harsco Rail segment remeasurement of long-lived assets | — | — | 10,695 | — | — | 10,695 | ||||||||||||||||||||||||||
Operating income (loss), excluding unusual items | 19,588 | 20,593 | 1,634 | (7,907) | 33,908 | |||||||||||||||||||||||||||
Depreciation | 28,789 | 7,413 | 361 | 357 | 36,920 | |||||||||||||||||||||||||||
Amortization | 1,018 | 6,167 | 22 | — | 7,207 | |||||||||||||||||||||||||||
Adjusted EBITDA | 49,395 | 34,173 | 2,017 | (7,550) | 78,035 | |||||||||||||||||||||||||||
Revenues, as reported | $ | 299,119 | $ | 226,030 | $ | 75,168 | $ | 600,317 | ||||||||||||||||||||||||
Adjusted EBITDA margin (%) | 16.5 | % | 15.1 | % | 2.7 | % | 13.0 | % | ||||||||||||||||||||||||
Three Months Ended March 31, 2023: | ||||||||||||||||||||||||||||||||
Operating income (loss), as reported | $ | 22,285 | $ | 16,471 | 2,345 | $ | (9,186) | $ | 31,915 | |||||||||||||||||||||||
Corporate strategic costs | — | — | — | 1,046 | 1,046 | |||||||||||||||||||||||||||
Segment severance costs | — | — | (537) | — | (537) | |||||||||||||||||||||||||||
Harsco Environmental net gain on lease incentive | (6,782) | — | — | — | (6,782) | |||||||||||||||||||||||||||
Operating income (loss), excluding unusual items | 15,503 | 16,471 | 1,808 | (8,140) | 25,642 | |||||||||||||||||||||||||||
Depreciation | 27,560 | 4,927 | — | 552 | 33,039 | |||||||||||||||||||||||||||
Amortization | 999 | 6,029 | — | — | 7,028 | |||||||||||||||||||||||||||
Adjusted EBITDA | 44,062 | 27,427 | 1,808 | (7,588) | 65,709 | |||||||||||||||||||||||||||
Revenues, as reported | $ | 273,189 | $ | 222,464 | $ | 65,052 | $ | 560,705 | ||||||||||||||||||||||||
Adjusted EBITDA margin (%) | 16.1 | % | 12.3 | % | 2.8 | % | 11.7 | % |
ENVIRI CORPORATION
RECONCILIATION OF ADJUSTED EBITDA TO CONSOLIDATED INCOME (LOSS) FROM CONTINUING OPERATIONS AS REPORTED (Unaudited)
|
||||||||||||||
Three Months Ended
March 31
|
||||||||||||||
(In thousands) | 2024 | 2023 | ||||||||||||
Consolidated income (loss) from continuing operations | $ | (15,741) | $ | (7,442) | ||||||||||
Add back (deduct): | ||||||||||||||
Equity in (income) loss of unconsolidated entities, net | 249 | 133 | ||||||||||||
Income tax (benefit) expense | 7,915 | 8,017 | ||||||||||||
Defined benefit pension expense | 4,176 | 5,329 | ||||||||||||
Facility fee and debt-related expense | 2,789 | 2,363 | ||||||||||||
Interest expense | 28,122 | 24,995 | ||||||||||||
Interest income | (1,697) | (1,480) | ||||||||||||
Depreciation | 36,920 | 33,039 | ||||||||||||
Amortization | 7,207 | 7,028 | ||||||||||||
Unusual items: | ||||||||||||||
Corporate strategic costs | 681 | 1,046 | ||||||||||||
Corporate net gain on sale of assets | (3,281) | — | ||||||||||||
Harsco Environmental segment net gain on lease incentive | — | (6,782) | ||||||||||||
Harsco Rail segment severance costs | — | (537) | ||||||||||||
Harsco Rail segment remeasurement of long-lived assets | 10,695 | — | ||||||||||||
Adjusted EBITDA | $ | 78,035 | $ | 65,709 |
ENVIRI CORPORATION
RECONCILIATION OF PROJECTED CONSOLIDATED ADJUSTED EBITDA TO PROJECTED CONSOLIDATED INCOME FROM CONTINUING OPERATIONS (Unaudited)
|
||||||||||||||||||||||||||
Projected | Projected | |||||||||||||||||||||||||
Three Months Ending | Twelve Months Ending | |||||||||||||||||||||||||
June 30 | December 31 | |||||||||||||||||||||||||
2024 | 2024 | |||||||||||||||||||||||||
(In millions) | Low | High | Low | High | ||||||||||||||||||||||
Consolidated loss from continuing operations | $ | (7) | $ | (1) | $ | (32) | $ | (15) | ||||||||||||||||||
Add back (deduct): | ||||||||||||||||||||||||||
Income tax (income) expense | 6 | 8 | 28 | 33 | ||||||||||||||||||||||
Facility fees and debt-related (income) expense | 3 | 2 | 11 | 11 | ||||||||||||||||||||||
Net interest | 27 | 26 | 111 | 106 | ||||||||||||||||||||||
Defined benefit pension (income) expense | 5 | 4 | 17 | 17 | ||||||||||||||||||||||
Depreciation and amortization | 45 | 45 | 181 | 181 | ||||||||||||||||||||||
Unusual items: | ||||||||||||||||||||||||||
Corporate strategic costs | — | — | 1 | 1 | ||||||||||||||||||||||
Corporate net gain on sale of assets | — | — | (3) | (3) | ||||||||||||||||||||||
Harsco Rail segment remeasurement of long-lived assets | — | — | 11 | 11 | ||||||||||||||||||||||
Consolidated Adjusted EBITDA | $ | 78 | (a) | $ | 85 | (a) | $ | 325 | $ | 342 |
ENVIRI CORPORATION
RECONCILIATION OF ADJUSTED FREE CASH FLOW TO NET CASH PROVIDED BY OPERATING ACTIVITIES (Unaudited)
| ||||||||||||||
Three Months Ended | ||||||||||||||
March 31 | ||||||||||||||
(In thousands) | 2024 | 2023 | ||||||||||||
Net cash provided (used) by operating activities | $ | 1,348 | $ | 36,912 | ||||||||||
Less capital expenditures | (26,881) | (22,146) | ||||||||||||
Less expenditures for intangible assets | (77) | (36) | ||||||||||||
Plus capital expenditures for strategic ventures (a) | 1,153 | 486 | ||||||||||||
Plus total proceeds from sales of assets (b) | 4,313 | 823 | ||||||||||||
Plus transaction-related expenditures (c) | 3,500 | — | ||||||||||||
Adjusted free cash flow | $ | (16,644) | $ | 16,039 | ||||||||||
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 ADJUSTED EBITDA BY SEGMENT TO OPERATING INCOME (LOSS) BY SEGMENT (Unaudited)
|
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(In thousands) | Harsco Environmental | Clean Earth | Harsco Rail | Corporate | Consolidated Totals | |||||||||||||||||||||||||||
Three Months Ended March 31, 2023: | ||||||||||||||||||||||||||||||||
Operating income (loss) | $ | 22,285 | $ | 16,471 | $ | 2,345 | $ | (9,186) | $ | 31,915 | ||||||||||||||||||||||
Corporate strategic costs | — | — | — | 1,046 | 1,046 | |||||||||||||||||||||||||||
Segment severance costs | — | — | (537) | — | (537) | |||||||||||||||||||||||||||
Harsco Environmental segment net gain on lease incentive | (6,782) | — | — | — | (6,782) | |||||||||||||||||||||||||||
Operating income (loss), excluding unusual items | 15,503 | 16,471 | 1,808 | (8,140) | 25,642 | |||||||||||||||||||||||||||
Depreciation | 27,560 | 4,927 | — | 552 | 33,039 | |||||||||||||||||||||||||||
Amortization | 999 | 6,029 | — | — | 7,028 | |||||||||||||||||||||||||||
Adjusted EBITDA | 44,062 | 27,427 | 1,808 | (7,588) | 65,709 | |||||||||||||||||||||||||||
Revenues | $ | 273,189 | $ | 222,464 | $ | 65,052 | $ | 560,705 | ||||||||||||||||||||||||
Adjusted EBITDA margin (%) | 16.1 | % | 12.3 | % | 2.8 | % | 11.7 | % | ||||||||||||||||||||||||
Three Months Ended June 30, 2023: | ||||||||||||||||||||||||||||||||
Operating income (loss) | $ | 12,733 | $ | 23,034 | $ | 8,924 | $ | (11,004) | $ | 33,687 | ||||||||||||||||||||||
Corporate strategic costs | — | — | — | 1,291 | 1,291 | |||||||||||||||||||||||||||
Harsco Environmental segment net gain on lease incentive | (3,000) | — | — | — | (3,000) | |||||||||||||||||||||||||||
Harsco Environmental segment property, plant and equipment impairment | 14,099 | — | — | — | 14,099 | |||||||||||||||||||||||||||
Harsco Rail segment provision for forward losses on contracts (a) | — | — | (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 | $ | 289,593 | $ | 230,575 | $ | 88,848 | $ | 609,016 | ||||||||||||||||||||||||
Adjusted EBITDA margin (%) | 18.4 | % | 15.0 | % | 2.1 | % | 13.2 | % | ||||||||||||||||||||||||
Three Months Ended September 30, 2023: | ||||||||||||||||||||||||||||||||
Operating income (loss) | $ | 17,867 | $ | 21,497 | $ | (1,000) | $ | (9,604) | $ | 28,760 | ||||||||||||||||||||||
Corporate strategic costs | — | — | — | 2,044 | 2,044 | |||||||||||||||||||||||||||
Corporate contingent consideration adjustment | — | — | — | (828) | (828) | |||||||||||||||||||||||||||
Segment severance costs | 1,146 | — | — | — | 1,146 | |||||||||||||||||||||||||||
Harsco Environmental segment accounts receivable provision | 5,284 | — | — | — | 5,284 | |||||||||||||||||||||||||||
Harsco Rail segment provision for forward losses on contracts (a) | — | — | 2,857 | — | 2,857 | |||||||||||||||||||||||||||
Operating income (loss), excluding unusual items | 24,297 | 21,497 | 1,857 | (8,388) | 39,263 | |||||||||||||||||||||||||||
Depreciation | 28,793 | 6,054 | — | 550 | 35,397 | |||||||||||||||||||||||||||
Amortization | 1,013 | 6,330 | — | — | 7,343 | |||||||||||||||||||||||||||
Adjusted EBITDA | 54,103 | 33,881 | 1,857 | (7,838) | 82,003 | |||||||||||||||||||||||||||
Revenues | $ | 285,877 | $ | 238,711 | $ | 72,380 | $ | 596,968 | ||||||||||||||||||||||||
Adjusted EBITDA margin (%) | 18.9 | % | 14.2 | % | 2.6 | % | 13.7 | % | ||||||||||||||||||||||||
Three Months Ended December 31, 2023: | ||||||||||||||||||||||||||||||||
Operating income (loss) | $ | 24,750 | $ | 15,972 | $ | (41,940) | $ | (13,206) | $ | (14,424) | ||||||||||||||||||||||
Corporate strategic costs | — | — | — | 1,979 | 1,979 | |||||||||||||||||||||||||||
Harsco Environmental segment net gain on lease incentive | 1,729 | — | — | — | 1,729 | |||||||||||||||||||||||||||
Harsco Rail segment provision for forward losses on contracts and contract-related costs (a) | — | — | 47,024 | — | 47,024 | |||||||||||||||||||||||||||
Harsco Rail segment net gain on sale of asset | — | — | (2,374) | — | (2,374) | |||||||||||||||||||||||||||
Operating income (loss), excluding unusual items | 26,479 | 15,972 | 2,710 | (11,227) | 33,934 | |||||||||||||||||||||||||||
Depreciation | 28,865 | 6,724 | — | 474 | 36,063 | |||||||||||||||||||||||||||
Amortization | 1,009 | 6,112 | — | — | 7,121 | |||||||||||||||||||||||||||
Adjusted EBITDA | 56,353 | 28,808 | 2,710 | (10,753) | 77,118 | |||||||||||||||||||||||||||
Revenues | $ | 292,245 | $ | 236,571 | $ | 70,515 | $ | 599,331 | ||||||||||||||||||||||||
Adjusted EBITDA margin (%) | 19.3 | % | 12.2 | % | 3.8 | % | 12.9 | % | ||||||||||||||||||||||||
ENVIRI CORPORATION
RECONCILIATION OF ADJUSTED EBITDA BY SEGMENT TO OPERATING INCOME (LOSS) BY SEGMENT (Unaudited)
|
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(In thousands) | Harsco Environmental | Clean Earth | Harsco Rail | Corporate | Consolidated Totals | |||||||||||||||||||||||||||
Twelve Months Ended December 31, 2023: | ||||||||||||||||||||||||||||||||
Operating income (loss) | $ | 77,635 | $ | 76,974 | $ | (31,671) | $ | (43,000) | $ | 79,938 | ||||||||||||||||||||||
Corporate strategic costs | — | — | — | 6,360 | 6,360 | |||||||||||||||||||||||||||
Corporate contingent consideration adjustment | — | — | — | (828) | (828) | |||||||||||||||||||||||||||
Segment severance costs | 1,146 | — | (537) | — | 609 | |||||||||||||||||||||||||||
Harsco Environmental segment net gain on lease incentive | (8,053) | — | — | — | (8,053) | |||||||||||||||||||||||||||
Harsco Environmental segment property, plant and equipment impairment | 14,099 | — | — | — | 14,099 | |||||||||||||||||||||||||||
Harsco Environmental segment accounts receivable provision | 5,284 | — | — | — | 5,284 | |||||||||||||||||||||||||||
Harsco Rail segment provision for forward losses on contracts and contract-related costs (a) | — | — | 42,849 | — | 42,849 | |||||||||||||||||||||||||||
Harsco Rail segment net gain on sale of asset | — | — | (2,374) | — | (2,374) | |||||||||||||||||||||||||||
Operating income (loss), excluding unusual items | 90,111 | 76,974 | 8,267 | (37,468) | 137,884 | |||||||||||||||||||||||||||
Depreciation | 113,572 | 23,252 | — | 2,132 | 138,956 | |||||||||||||||||||||||||||
Amortization | 4,029 | 24,584 | — | — | 28,613 | |||||||||||||||||||||||||||
Adjusted EBITDA | 207,712 | 124,810 | 8,267 | (35,336) | 305,453 | |||||||||||||||||||||||||||
Revenues | $ | 1,140,904 | $ | 928,321 | $ | 296,795 | $ | 2,366,020 | ||||||||||||||||||||||||
Adjusted EBITDA margin (%) | 18.2 | % | 13.4 | % | 2.8 | % | 12.9 | % |