Enviri Corporation · NYSE:NVRI
Enviri — Harsco — Q2 2018 Earnings Presentation
24 slides from Enviri's earnings presentation, Aug 2, 2018
Slide 1: Q2 2018 Results & Outlook
Q2 2018 Results & Outlook Conference Call│ August 2, 2018 1
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 ▪ Q2 adjusted operating income and EPS above guidance ▪ 2018 Outlook increased; reflects positive market developments and improved visibility as well as lower Corporate costs ▪ Momentum expected to continue through 2019 ▪ Business updates: ▪ M&M – strong profit growth net of investme
Slide 4: Q2 2018 Financial Summary
Q2 2018 FINANCIAL SUMMARY KEY PERFORMANCE INDICATORS ▪ Q2 adjusted operating income above guidance Change vs. 2017 range of $45-50 million $ in millions except EPS Q2 2018 $ % or bps ▪ Earnings exceeded guidance Revenues 432 37 9% due to positive results in GAAP Operating Income 54 10 24% Industrial
Slide 5: Q2 2018 Business Highlights: Metals & Minerals
Q2 2018 Business Highlights METALS & MINERALS ▪ Revenues increased due to higher services demand and Applied Product sales SUMMARY RESULTS LST CONTINUING SITES $ in millions Million tons Q2 Q2 % 39 ▪ Operating income 2018 2017 Change increase reflects 36 Revenues, as 272 259 5% above items and repor
Slide 6: Q2 2018 Business Highlights: Industrial
Q2 2018 Business Highlights INDUSTRIAL ▪ Revenue increase reflects improved demand across segment and higher SUMMARY RESULTS REVENUE MIX1 product prices $ in millions $ in millions 100 Q2 Q2 % 2018 2017 Change 80 ▪ Operating income increase the result of Revenues, as 60 92 74 25% higher demand and r
Slide 7: Q2 2018 Business Highlights: Rail
Q2 2018 Business Highlights RAIL ▪ Revenues increased due to SBB and higher aftermarket- parts sales; offset by SUMMARY RESULTS REVENUE MIX1 $ in millions $ in millions lower contract Q2 Q2 % services and 125 2018 2017 Change international 100 Revenues, as equipment sales 68 62 9% reported 75 Operat
Slide 8: 2018 Outlook - Consolidated
2018 OUTLOOK - CONSOLIDATED 2018 Outlook(2) 2018 Prior 2017 Actual(3) OPERATING INCOME - $177 to $187M $165 to $180M $145M GAAP ADJUSTED OPERATING $175 to $185M $165 to $180M $150M INCOME1 ADJUSTED OPERATING 10.0% to 10.5% 9.5% to 10.0% 9.3% INCOME MARGIN1 DILUTED EARNINGS PER $1.31 to $1.39 $1.11 t
Slide 9: Q3 2018 Outlook
Q3 2018 YEAR-OVER-YEAR CONSIDERATIONS INCLUDE: OUTLOOK METALS & MINERALS Higher LST and commodities, new contracts Applied Products and Adjusted operating income1 is expected to be between operating benefits, partially offset by exits, growth- $ 50M–$55M versus $39M in Q3 2017 related investments an
Slide 10: Q&A
Q&A HARSCO
Slide 11: Appendix
APPENDIX 11
Slide 12: 2018 Segment Outlook
2018 SEGMENT OUTLOOK Excluding unusual items 2018 VERSUS 20171 Revenues ▲ Mid-single to high-single digits Operating Income ▲ ~10% at mid-point, excluding unusual items Metals & Minerals + LST, new sites/services, cost/operational savings, commodities prices, Applied Products Drivers - Exited sites,
Slide 13: 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 PER SHARE FROM CONTINUING OPERATIONS AS REPORTED (Unaudited) Three Months Ended Six Months Ended June 30 June 30 2018 20
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 LOSS PER SHARE FROM CONTINUING OPERATIONS AS REPORTED (Unaudited) Three Months Ended September 30 2017 Diluted loss per share fro
Slide 15: 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 PER SHARE FROM CONTINUING OPERATIONS AS REPORTED (Unaudited) Twelve Months Ended December 31 2017 Diluted earnings per s
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 Metals Harsco Harsco Consolidated (In thousands) & 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 Metals Harsco Harsco Consolidated (In thousands) & Minerals Industrial Rail Corporate 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 Metals & Harsco Harsco Consolidated (In thousands) Minerals Industrial Rail Corporate Tota
Slide 19: 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 Metals Harsco Harsco Consolidated (In thousands) & Minerals Industrial Rail Corporate Tot
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) Three Months Ended Six Months Ended June 30 June 30 (In thousands) 2018 2017 2018 2017 Net cash used by operating activities $ 54,942 $ 52,903 $ 46,699 $ 4
Slide 21: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF FREE CASH FLOW AND FREE CASH FLOW BEFORE GROWTH CAPITAL EXPENDITURES TO NET CASH PROVIDED BY OPERATING ACTIVITIES (Unaudited) Twelve Months Ended December 31 (In thousands) 2017 Net cash provided by operating activities $ 176,8
Slide 22: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF FREE CASH FLOW AND FREE CASH FLOW BEFORE GROWTH CAPITAL EXPENDITURES TO NET CASH PROVIDED BY OPERATING ACTIVITIES (Unaudited) Projected Twelve Months Ending December 31 2018 (In millions) Low High Net cash provided by operating
Slide 23: 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) Trailing Twelve Months for Period (a) Return on invested capital excluding unusual items is Ended Ju
Slide 24: 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 (a) Return on invested capital excluding unusual items is December 31 net income from con