Enviri Corporation · NYSE:NVRI
Enviri — Harsco — Q3 2021 Earnings Presentation
28 slides from Enviri's earnings presentation, Nov 2, 2021
Slide 1: Q3 2021 Quarterly Results and Outlook
Q3 2021 Quarterly Results and Outlook Conference Call November 2, 2021
Slide 2: Administrative Items
ADMINISTRATIVE ITEMS Conference Call and Access to Information More information on Harsco's quarterly earnings, including the Company’s earnings press release issued today and this presentation, is available on the Investor Relations portion of Harsco’s website. Company management will discuss the C
Slide 3: CEO Perspective
CEO PERSPECTIVE – Team executed well in Q3, although results were below guidance due to external factors and timing – Rail impacted by cost inflation, customer deferrals and a volatile end-market – Clean Earth headwinds included container and transportation inflation as well as end-disposal bottlene
Slide 4: Q3 2021 Financial Summary
Q3 2021 FINANCIAL SUMMARY KEY PERFORMANCE INDICATORS $ in millions except EPS; Continuing Q3 2021 Q3 2020 Change Operations – Q3 2021 Adjusted EBITDA increased 22% YoY Revenues, as reported 544 509 7% – EBITDA increase attributable to Operating Income - GAAP 30 5 nmf Environmental segment as well as
Slide 5: Q3 2021 Environmental
Q3 2021 ENVIRONMENTAL 1 SUMMARY RESULTS ADJUSTED EBITDA BRIDGE $ in millions $ in millions Q3 Q3 60 % 2.9 55.9 2021 2020 4.2 55 7.7 50 Revenues, as reported 270 223 21% 45 1.2 39.9 40 Operating Income – 28 12 124% GAAP 35 Q3 2020 New-Exited LST/Services Applied SG&A, FX & Q3 2021 Sites (net) Level P
Slide 6: Q3 2021 Clean Earth
Q3 2021 CLEAN EARTH 1 SUMMARY RESULTS ADJUSTED EBITDA BRIDGE $ in millions $ in millions 30 Q3 Q3 3.6 % 20.2 20.5 2021 2020 20 (0.4) (2.9) Revenues, as reported 200 194 3% 10 Operating Income – 0 10 9 11% GAAP Q3 2020 Hazardous Soil-Dredge SG&A / Q3 2021 Waste Materials Other 1 Adjusted EBITDA 21 20
Slide 7: Q3 2021 Rail
Q3 2021 RAIL 1 SUMMARY RESULTS ADJUSTED EBITDA BRIDGE $ in millions $ in millions Q3 Q3 % 2021 2020 10 0.5 3.0 Revenues, as reported 74 93 (20)% 5.4 5 3.3 (1.9) Operating Income – (2.3) (1.4) 2 4 (52)% GAAP 0 Q3 2020 Machine Aftermarket Contract Inflation/LIFO SG&A / Q3 2021 1 Adjusted EBITDA Sales
Slide 8: 2021 Outlook - Consolidated (Pro Forma)
2021 OUTLOOK - CONSOLIDATED (PRO FORMA) 3 2021 Outlook GAAP OPERATING INCOME $85 - 92M 1 ADJUSTED EBITDA $248 - 256M GAAP DILUTED EARNINGS PER SHARE $0.12- $0.14 1 ADJUSTED DILUTED EARNINGS PER SHARE $0.51- $0.54 1 FREE CASH FLOW BEFORE GROWTH CAPITAL $55M - 65M 2 FREE CASH FLOW $5M - 15M (1) Exclud
Slide 9: Q4 2021 Outlook (Pro Forma)
2 Q4 2021 OUTLOOK (PRO FORMA ) YEAR-OVER-YEAR CONSIDERATIONS INCLUDE: 1 Adjusted EBITDA is expected to be between $ $ 55M- 62M Higher environmental service levels and commodity prices offset by less favorable services mix, contract exits and FX translation 1 Adjusted diluted earnings per share is ex
Slide 10: Harsco
HARSCO © 2021 Harsco Corporation. All Rights Reserved. This document and the information set forth herein are the property of Harsco Corporation. 10
Slide 11: Appendix
Appendix HARSCO © 2021 Harsco Corporation. All Rights Reserved. This document and the information set forth herein are the property of Harsco Corporation. 11
Slide 12: 2021 Segment Outlook
2021 SEGMENT OUTLOOK Excluding unusual items 2021 VERSUS 2020 REVENUES ▲ Low double-digit growth, excluding FX translation impacts 1 ADJUSTED EBITDA ▲ Approximately up 25% at mid-point YoY + Services and applied products demand growth, new contracts / sites, higher - DRIVERS commodities Exited contr
Slide 13: Non-GAAP Measures
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-
Slide 14: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO 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 Nine Months Ended September 30 September 30 2021 2020 202
Slide 15: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES (a) Costs at Corporate associated with amending the Company's existing Senior Secured Credit Facilities to establish a New Term Loan the proceeds of which were used to repay in full the outstanding Term Loan A and Term Loan B, to extend the maturity date of the Re
Slide 16: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO 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 D
Slide 17: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF ADJUSTED EBITDA BY SEGMENT TO OPERATING INCOME (LOSS) AS REPORTED BY SEGMENT (Unaudited) Harsco Harsco Clean Harsco Consolidated (In thousands) Environmental Earth Rail Corporate Totals Three Months Ended September 30, 2021: Op
Slide 18: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF ADJUSTED EBITDA BY SEGMENT TO OPERATING INCOME (LOSS) AS REPORTED BY SEGMENT (Unaudited) Harsco Harsco Clean Harsco Consolidated (In thousands) Environmental Earth Rail Corporate Totals Three Months Ended September 30, 2020: Op
Slide 19: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF ADJUSTED EBITDA AND PROFORMA ADJUSTED EBITDA BY SEGMENT TO OPERATING INCOME (LOSS) AS REPORTED BY SEGMENT (Unaudited) Harsco Harsco Harsco Consolidated (In thousands) Environmental Clean Earth (a) Rail Corporate Totals Nine Mon
Slide 20: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF ADJUSTED EBITDA AND PROFORMA ADJUSTED EBITDA BY SEGMENT TO OPERATING INCOME (LOSS) AS REPORTED BY SEGMENT (Unaudited) Harsco Harsco Harsco Consolidated (In thousands) Environmental Clean Earth (a) Rail Corporate Totals Nine Mon
Slide 21: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF ADJUSTED EBITDA AND PROFORMA ADJUSTED EBITDA BY SEGMENT TO OPERATING INCOME (LOSS) AS REPORTED BY SEGMENT (Unaudited) Harsco Harsco Harsco Consolidated (In thousands) Environmental Clean Earth (a) Rail Corporate Totals Twelve M
Slide 22: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF CONSOLIDATED ADJUSTED EBITDA TO CONSOLIDATED INCOME (LOSS) FROM CONTINUING OPERATIONS AS REPORTED (Unaudited) Three Months Ended September 30 (In thousands) 2021 2020 Consolidated income (loss) from continuing operations $ 10,9
Slide 23: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF CONSOLIDATED ADJUSTED EBITDA TO CONSOLIDATED INCOME (LOSS) FROM CONTINUING OPERATIONS AS REPORTED (Unaudited) Nine Months Ended September 30 (In thousands) 2021 2020 Consolidated income (loss) from continuing operations $ 30,00
Slide 24: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF PROJECTED CONSOLIDATED ADJUSTED EBITDA TO PROJECTED CONSOLIDATED INCOME FROM CONTINUING OPERATIONS (a) (Unaudited) Projected Projected Twelve Three Months Ending Months Ending December 31 December 31 2021 2021 (In millions) Low
Slide 25: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF HARSCO CLEAN EARTH PROJECTED ADJUSTED EBITDA TO HARSCO CLEAN EARTH PROJECTED OPERATING INCOME (Unaudited) Harsco Clean Earth Projected Twelve Months Ending December 31 2021 (In millions) Low High Operating income $ 27 $ 31 Depr
Slide 26: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO 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) 2021 2020 2021 2020 Net cash provided by operating activities $ 33,220 $ 20,7
Slide 27: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF PROJECTED FREE CASH FLOW TO PROJECTED NET CASH PROVIDED BY OPERATING ACTIVITIES (Unaudited) Projected Twelve Months Ending December 31 2021 (In millions) Low High Net cash provided by operating activities $ 91 $ 111 Less capita
Slide 28: Harsco
HARSCO © 2021 Harsco Corporation. This document and its contents remain the property of Harsco Corporation. Any disclosure or copying of this document and its contents without the prior written approval of Harsco Corporation is prohibited. All Rights Reserved,