Slide 1: Q4 2016 Results & Outlook
Q4 2016 Results & Outlook Conference Call │February 24, 2017 ©2017 Harsco Corporation. All Rights Reserved
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 – 2016 and Outlook
CEO Perspective – 2016 and Outlook 2016 Highlights Full-year adjusted OI and FCF above guidance established last February M&M results improved despite earlier exits and lower LST and commodities Controlled Corporate costs Industrial and Rail executed efficiency actions as managed through c
Slide 4: Q4 2016 Financial Summary – Key Performance Indicators
Q4 2016 Financial Summary – Key Performance Indicators ($ - millions, except EPS) Change vs. 2015 Q4 adjusted operating income toward high-end of guidance Fourth $ % range of $20-29 million; strong Quarter M&M performance and lower Revenues 360 (27) (7)% Corporate costs supported results Adjuste
Slide 5: FY 2016 Financial Summary – Key Performance Indicators
FY 2016 Financial Summary – Key Performance Indicators ($ - millions, except EPS) Change vs. 2015 2016 adjusted operating income reflects meaningful improvement $ % in M&M performance, despite no 2016 uplift from metal markets; also Revenues 1,451 (272) (16)% sizable decline in Corporate costs GAA
Slide 6: Q4 2016 – Metals & Minerals
Q4 2016 – Metals & Minerals Summary Results LST Continuing Sites (million tons) ($ in millions) Q4 2016 Q4 2015 % change 40 Revenues, as reported 235 243 (4)% 36 GAAP operating income 20 nmf nmf 32 GAAP operating margin 8.4% 0.2% Adjusted operating income* 19 12 59% 28 Adjusted operating margin* 7.9
Slide 7: Q4 2016 - Industrial
Q4 2016 - Industrial Summary Results Revenue Mix 120 ($ in millions) Q4 2016 Q4 2015 % change 100 Revenues, as reported 56 75 (26)% 80 Operating income - GAAP 3 12 (73)% 60 Operating margin - GAAP 5.5% 15.4% 40 20 Free cash flow (YTD) 23 59 (61)% 0 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1
Slide 8: Q4 2016 - Rail
Q4 2016 - Rail Summary Results Revenue Mix 80 ($ in millions) Q4 2016 Q4 2015 % change 70 Revenues, as reported 70 69 1% 60 GAAP operating income 5 10 (51)% 50 GAAP operating margin 7.1% 14.6% 40 Adjusted operating income* 10 10 nmf 30 Adjusted operating margin* 14.2% 14.6% 20 10 Free cash flow (YTD
Slide 9: 2017 Summary Outlook
2017 Summary Outlook 2017 Outlook 2016 Actual GAAP Operating Income $100 to $120 million $63 million Adjusted Operating $100 to $120 million $116 million Income(1) $60 million to $80 Free Cash Flow $100 million million ROIC(1) 8.0% to 9.0% 6.9% GAAP Diluted Earnings/(Loss) Per $0.32 to $0.50 $(1.07)
Slide 10: 2017 Business Outlook
2017 Business Outlook Excluding unusual items 2017 versus 2016 Revenues unchanged to ↓ single digits Operating Income Unchanged at mid-point, excluding unusual items Metals & Minerals + Commodities prices, LST, cost/operational savings, Drivers new sites - FX, nickel & Applied Product volumes, servi
Slide 11: Q1 2017 Outlook
Q1 2017 Outlook Adjusted operating income is expected to be between $15 to $20 million versus $18 million in Q1 2016 Adjusted diluted (loss)/earnings per share of $(0.01) to $0.04 Year-over-year considerations include: M&M: Cost improvements, as well as higher LST and nickel prices Industr
Slide 12: Q&A
Q&A 12 ©2017 Harsco Corporation. All Rights Reserved
Slide 13: Appendix
Appendix ©2017 Harsco Corporation. All Rights Reserved
Slide 14: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures HARSCO CORPORATION RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS EXCLUDING UNUSUAL ITEMS TO DILUTED EARNINGS (LOSS) PER SHARE FROM CONTINUING OPERATIONS AS REPORTED (Unaudited) Three Months Ended Twelve Months Ended (a) Loss on t
Slide 15: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures HARSCO CORPORATION REVIEW OF OPERATIONS BY SEGMENT EXCLUDING UNUSUAL ITEMS (Unaudited) Harsco Harsco Harsco (In thousands) Metals & Minerals Industrial Rail Corporate Consolidated Totals Three Months Ended December 31, 2016: Adjusted operating income (loss) exclud
Slide 16: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures HARSCO CORPORATION RECONCILIATION OF ADJUSTED OPERATING INCOME (LOSS) EXCLUDING UNUSUAL ITEMS BY SEGMENT TO OPERATING INCOME (LOSS) AS REPORTED BY SEGMENT (Unaudited) Harsco Harsco Harsco Consolidated (In thousands) Metals & Minerals Industrial Rail Corporate Tota
Slide 17: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures HARSCO CORPORATION RECONCILIATION OF ADJUSTED OPERATING INCOME (LOSS) EXCLUDING UNUSUAL ITEMS BY SEGMENT TO OPERATING INCOME (LOSS) AS REPORTED BY SEGMENT (Unaudited) Harsco Harsco Harsco (In thousands) Metals & Minerals Industrial Rail Corporate Consolidated Tota
Slide 18: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures HARSCO CORPORATION RECONCILIATION OF ADJUSTED OPERATING INCOME (LOSS) EXCLUDING UNUSUAL ITEMS BY SEGMENT TO OPERATING INCOME (LOSS) AS REPORTED BY SEGMENT (Unaudited) Harsco Harsco Harsco Consolidated (In thousands) Metals & Minerals Industrial Rail Corporate Tota
Slide 19: 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 Twelve Months Ended December 31 December 31 (In thousands) 2016 2015 2016 2015 Net cash provided by operating activities $ 55,030 $ 32,4
Slide 20: 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) Projected Twelve Months Ending December 31 2017 (In millions) Low High Net cash provided by operating activities $ 149 $ 158 Less capital expenditures (90)
Slide 21: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures HARSCO CORPORATION RECONCILIATION OF RETURN ON INVESTED CAPITAL EXCLUDING UNUSUAL ITEMS TO NET INCOME (LOSS) FROM CONTINUING OPERATIONS AS REPORTED (a) (Unaudited) Year Ended December 31 (In thousands) 2016 2015 Income (loss) from continuing operations $ (80,422)