Slide 1: Q4 2020 Quarterly Results and Outlook
Q4 2020 Quarterly Results and Outlook Conference Call February 25, 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 – Resilient performance and continued progress on strategic initiatives – Consolidated results improved further sequentially ◦ Environmental results strong with more favorable market conditions ◦ ESOL integration work progressing ahead of plan ◦ Contaminated soil and rail market cond
Slide 4: 2020 ESG Highlights
2020 ESG HIGHLIGHTS 2020 ESG Performance Highlights 1 External ESG Recognition Named to Newsweek's 82% of revenues in 2020 America's Most Responsible derived from environmental Companies 2021 list segments Harsco Rail received Achieved 83% participation Silver CSR rating from rate in 2020 Employee E
Slide 5: Q4 2020 Financial Summary
Q4 2020 FINANCIAL SUMMARY KEY PERFORMANCE INDICATORS $ in millions except EPS; Continuing Q4 2020 Q4 2019 Q3 2020 Operations – Q4 2020 Adjusted EBITDA of $62 million Revenues, as reported 508 400 509 near upper-end of guidance ($58 to $63 million) – Adjusted EBITDA modestly above prior- Operating In
Slide 6: Q4 2020 Environmental
Q4 2020 ENVIRONMENTAL 1 SUMMARY RESULTS ADJUSTED EBITDA BRIDGE $ in millions $ in millions Q4 Q4 Q3 65 2020 2019 2020 60 55 51.0 2.5 52.2 1.2 Revenues, as reported 246 243 223 50 45 (1.9) (0.6) Operating Income – 40 23 27 12 GAAP 35 Q4 2019 New-Exited LST/Services Ni & Applied SG&A, FX, & Q4 2020 Si
Slide 7: Q4 2020 Clean Earth
Q4 2020 CLEAN EARTH 1 SUMMARY RESULTS ADJUSTED EBITDA BRIDGE $ in millions $ in millions 30 Q4 Q4 Q3 6.1 2020 2019 2020 20 16.8 15.9 (4.6) Revenues, as reported 185 82 194 (2.4) 10 Operating Income – 0 3 9 9 GAAP Q4 2019 Hazardous Contaminated SG&A / Q4 2020 Waste Materials / Dredge Other 1 Adjusted
Slide 8: Q4 2020 Rail
Q4 2020 RAIL 1 SUMMARY RESULTS ADJUSTED EBITDA BRIDGE $ in millions $ in millions Q4 Q4 Q3 2020 2019 2020 10 5 6.6 2.5 Revenues, as reported 77 75 93 0 0.8 Operating Income (1.8) (0.5) 1 (3) 4 -5 (Loss) – GAAP (2.6) -10 1 Adjusted EBITDA Q4 2019 Machine Aftermarket Contract SG&A / Q4 2020 3 (2) 5 Sa
Slide 9: 2020 Financial Summary
2020 FINANCIAL SUMMARY Change vs 2019 KEY PERFORMANCE INDICATORS $ in millions except EPS; Continuing 2020 $ % or bps Operations – Revenues of $1.9B reflect acquisition Revenues, as reported 1,864 360 24% impacts and Rail growth Operating Income - GAAP 21 (83) nmf – Adjusted EBITDA change the result
Slide 10: 2021 Segment Outlook
2021 SEGMENT OUTLOOK Excluding unusual items 2021 VERSUS 2020 REVENUES ▲ 10% to 15%, including FX translation impacts 1 ADJUSTED EBITDA ▲ Approximately 20% at mid-point + Services and applied products demand growth, new contracts / sites - DRIVERS Exited sites, SG&A spending REVENUES ▲ 3% to 5% prof
Slide 11: 2021 Outlook - Consolidated
2021 OUTLOOK - CONSOLIDATED 2021 Outlook 2020 Actuals GAAP OPERATING INCOME $93 - 113M $21M 1 ADJUSTED EBITDA $275 - 295M $238M GAAP DILUTED EARNINGS PER SHARE $0.26 - $0.42 $(0.41) 1 ADJUSTED DILUTED EARNINGS PER SHARE $0.59 - $0.76 $0.49 1 FREE CASH FLOW BEFORE GROWTH CAPITAL $90 - 110M $42M 2 FRE
Slide 12: Q1 2021 Outlook
Q1 2021 OUTLOOK YEAR-OVER-YEAR CONSIDERATIONS INCLUDE: 1 Adjusted EBITDA is expected to be between $ $ 52M – 58M Lower SG&A spending, more favorable services mix and FX, partially offset by applied products demand and site exits 1 Adjusted diluted earnings per share of $ $ 0.01 – 0.10 ESOL contribut
Slide 13: Harsco
HARSCO © 2021 Harsco Corporation. All Rights Reserved. This document and the information set forth herein are the property of Harsco Corporation. 13
Slide 14: Appendix
Appendix HARSCO © 2021 Harsco Corporation. All Rights Reserved. This document and the information set forth herein are the property of Harsco Corporation. 14
Slide 15: 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 Twelve Months Ended December 31 December 31 2020 2019 202
Slide 16: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES (a) Costs at Corporate associated with supporting and executing the Company's growth strategy (Q4 2020 $6.9 million pre-tax; Full year 2020 $48.5 million pre-tax; Q4 2019 $7.3 million pre-tax; Full year 2019 $25.2 million pre-tax). (b) Harsco Environmental Segment
Slide 17: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS TO DILUTED LOSS PER SHARE FROM CONTINUING OPERATIONS AS REPORTED (Unaudited) Three Months Ended September 30 2020 Diluted loss per share from continuing operations
Slide 18: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES (a) Costs at Corporate associated with supporting and executing the Company's growth strategy ($10.6 million pre-tax). (b) Adjustment to contingent consideration related to the acquisition of Clean Earth recorded on Corporate ($2.4 million pre-tax). The Company ad
Slide 19: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF PROJECTED ADJUSTED DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS TO DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS (Unaudited) Projected Projected Three Months Ending Twelve Months Ending March 31 December 31 202
Slide 20: 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 (a) Rail Corporate Totals Three Months Ended December 31, 2020:
Slide 21: 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 (a) Rail Corporate Totals Three Months Ended December 31, 2019:
Slide 22: 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 Harsco Consolidated (In thousands) Environmental Clean Earth (a) Rail Corporate Totals Twelve Months Ended December 31, 2020
Slide 23: 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 Harsco Consolidated (In thousands) Environmental Clean Earth (a) Rail Corporate Totals Twelve Months Ended December 31, 2019
Slide 24: 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 Harsco Consolidated (In thousands) Environmental Clean Earth (a) Rail Corporate Totals Three Months Ended September 30, 2020
Slide 25: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF PROJECTED CONSOLIDATED ADJUSTED EBITDA TO PROJECTED CONSOLIDATED INCOME (LOSS) FROM CONTINUING OPERATIONS (Unaudited) Projected Projected Three Months Ending Twelve Months Ending March 31 December 31 2021 2021 (In millions) Low
Slide 26: 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 $ 26 $ 32 Depr
Slide 27: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF FREE CASH FLOW TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES (Unaudited) Three Months Ended Twelve Months Ended December 31 December 31 (In thousands) 2020 2019 2020 2019 Net cash provided (used) by operating activities $
Slide 28: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF FREE CASH FLOW TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES (Unaudited) Three Months Ended September 30 (In thousands) 2020 Net cash provided (used) by operating activities $ 20,755 Less capital expenditures (27,883) Les
Slide 29: 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 $ 170 $ 210 Less capit
Slide 30: 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,