Enviri Corporation · NYSE:NVRI
Enviri — Harsco — Q3 2019 Earnings Presentation
30 slides from Enviri's earnings presentation, Oct 29, 2019
Slide 1: Q3 2019 Results & Outlook Conference Call
Q3 2019 Results & Outlook Conference Call October 29, 2019 © 2019 Harsco Corporation. All Rights Reserved. This document and the information set forth herein are the property of Harsco Corporation
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: Enhancing Our Environmental, Social & Governance Disclosures
ENHANCING OUR ENVIRONMENTAL, SOCIAL & GOVERNANCE DISCLOSURES Ü Published our 2018-2019 ESG Report in October ▪ Our most comprehensive sustainability report to date ▪ 18-month timespan of the Report coincides with Harsco’s ongoing portfolio shift toward an environmental solutions platform ▪ Provides
Slide 4: Case Studies of Environmental Solutions We Are Delivering to Our Global Customers
CASE STUDIES OF ENVIRONMENTAL SOLUTIONS WE ARE DELIVERING TO OUR GLOBAL CUSTOMERS Ü Our innovative micro- Ü We recycled over 1.4 pelletizing and million pounds of briquetting solution is electronic waste delivering 200,000 tons of resulting from Hurricane briquettes annually to the Maria damages in
Slide 5: Q3 2019 Financial Summary
Q3 2019 FINANCIAL SUMMARY KEY PERFORMANCE INDICATORS CHANGE VS. 2018 Ü Q3 adjusted operating income of $ in millions except EPS Q3 2019 $ % or bps $57 million was within prior guidance range Revenues 423 72 20% Ü Environmental delivered Y/Y GAAP Operating Income 47 5 12% improvement despite weakenin
Slide 6: Q3 2019 Environmental
Q3 2019 ENVIRONMENTAL SUMMARY RESULTS ADJUSTED OPERATING INCOME BRIDGE1 $ in millions $ in millions 2.5 34.3 35 31.6 0.9 Q3 Q3 % or bps 2019 2018 30 (0.3) (0.4) Revenues, as reported 261 269 (3)% 25 20 Operating Income – Q3 2018 New-Exited LST/Services Ni & Applied SG&A, FX & Q3 2019 33 29 12% GAAP
Slide 7: Q3 2019 Clean Earth
Q3 2019 CLEAN EARTH SUMMARY RESULTS ADJUSTED OPERATING INCOME BRIDGE $ in millions $ in millions 20 1.6 16.4 Q3 Q3 7.3 % or bps 15 2019 2018 (0.1) (0.3) Revenues, as reported 88 71 23% 10 7.9 5 Operating Income – Q3 2018 Contaminated Hazardous Dredge SG&A/ Q3 2019 11 4 173% Materials Waste Other GAA
Slide 8: Q3 2019 Rail
Q3 2019 RAIL SUMMARY RESULTS ADJUSTED OPERATING INCOME BRIDGE1 $ in millions $ in millions 19.1 17 Q3 Q3 % or bps 2019 2018 (2.9) 2.0 13.0 13 0.1 Revenues, as reported 75 83 (10)% (5.3) 9 5 Operating Income – 12 19 (36)% Q3 2018 Machine Aftermarket Contract SG&A / Q3 2019 GAAP Sales Parts / Protran
Slide 9: 2019 Outlook - Consolidated
2019 OUTLOOK - CONSOLIDATED 2018 Actual 3 2019 Outlook 2019 Prior (previously reported)4 PROJECTED OPERATING INCOME $171 - 176M $181 - 191M $191M ADJUSTED OPERATING INCOME BEFORE $209 - 214M $215 - 225M $194M ACQUISITION AMORTIZATION1 PROJECTED DILUTED EARNINGS PER $0.86 - 0.92 $0.89 - 1.02 $1.64 SH
Slide 10: Q4 2019 Outlook
Q4 2019 OUTLOOK YEAR-OVER-YEAR CONSIDERATIONS Adjusted operating income before acquisition INCLUDE: amortization expense1 is expected to be between $ $ 53M – 58M New site contributions and lower administrative spending, partially offset by lower customer output and site exits Adjusted diluted earnin
Slide 11: Q&A
Q&A 11 © 2019 Harsco Corporation. All Rights Reserved. This document and the information set forth herein are the property of Harsco Corporation
Slide 12: Appendix
Appendix © 2019 Harsco Corporation. All Rights Reserved. This document and the information set forth herein are the property of Harsco Corporation
Slide 13: 2019 Segment Outlook
2019 SEGMENT OUTLOOK Excluding unusual items and acquisition 2019 VERSUS 2018 amortization expense REVENUES Low-single digits %, before FX translation impacts OPERATING INCOME Unchanged to up low-single digits % compared with 2018, before FX impacts DRIVERS + New contracts, operational savings - Exi
Slide 14: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE BEFORE ACQUISITION AMORTIZATION EXPENSE TO DILUTED EARNINGS (LOSS) PER SHARE FROM CONTINUING OPERATIONS AS REPORTED (Unaudited) Three Months Ended Nine Months Ended September 30 September 30
Slide 15: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES (a) Consultant costs at Corporate associated with supporting and executing the Company's growth strategy (Q3 2019 $2.7 million pre-tax; nine months 2019 $17.9 million pre-tax). (b) Costs at Corporate related to the unused bridge financing commitment and Term Loan
Slide 16: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE BEFORE ACQUISITION AMORTIZATION EXPENSE AND INCLUDING DISCONTINUED OPERATIONS TO DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS AS REPORTED (Unaudited) Twelve Months Ended December 31,
Slide 17: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES (a) Prior period amounts have been updated to reflect the former Harsco Industrial Segment as discontinued operations. (b) Harsco Environmental adjustment to previously accrued amounts related to the disposal of certain slag material in Latin America ($3.2 million
Slide 18: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF PROJECTED DILUTED EARNINGS PER SHARE AND ADJUSTED DILUTED EARNINGS PER SHARE BEFORE ESTIMATED ACQUISITION AMORTIZATION EXPENSE TO DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS (Unaudited) Projected Projected Twelve Thre
Slide 19: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF ADJUSTED OPERATING INCOME (LOSS) BEFORE ACQUISITION AMORTIZATION EXPENSE BY SEGMENT TO OPERATING INCOME (LOSS) AS REPORTED BY SEGMENT (Unaudited) Harsco Harsco Clean Harsco Consolidated (In thousands) Environmental Earth Rail C
Slide 20: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF ADJUSTED OPERATING INCOME (LOSS) BEFORE ACQUISITION AMORTIZATION EXPENSE BY SEGMENT TO OPERATING INCOME (LOSS) AS REPORTED BY SEGMENT (Unaudited) Harsco Harsco Clean Harsco Consolidated (In thousands) Environmental Earth Rail C
Slide 21: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF ADJUSTED HARSCO CLEAN EARTH SEGMENT OPERATING INCOME BEFORE ACQUISITION AMORTIZATION EXPENSE TO HARSCO CLEAN EARTH SEGMENT OPERATING INCOME (Unaudited) Three Months Ended September 30 (In millions) 2018 Operating income $ 4,278
Slide 22: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF ADJUSTED OPERATING INCOME (LOSS) BEFORE ACQUISITION AMORTIZATION EXPENSE AND INCLUDING DISCONTINUED OPERATIONS BY SEGMENT TO OPERATING INCOME (LOSS) AS REPORTED BY SEGMENT (Unaudited) Harsco Harsco Harsco Consolidated (In thous
Slide 23: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF ADJUSTED OPERATING INCOME (LOSS) BEFORE ACQUISITION AMORTIZATION EXPENSE AND INCLUDING DISCONTINUED OPERATIONS BY SEGMENT TO OPERATING INCOME (LOSS) AS REPORTED BY SEGMENT (Unaudited) For the Year For the Three Months Ended End
Slide 24: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF ADJUSTED OPERATING INCOME (LOSS) BEFORE ACQUISITION AMORTIZATION EXPENSE AND INCLUDING DISCONTINUED OPERATIONS BY SEGMENT TO OPERATING INCOME (LOSS) AS REPORTED BY SEGMENT (Unaudited) For the Six For the Three Months Ended Mont
Slide 25: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF PROJECTED OPEARTING INCOME AND ADJUSTED OPERATING INCOME BEFORE ACQUISITION AMORTIZATION EXPENSE TO OPERATING INCOME (Unaudited) Projected Projected Three Months Ended Twelve Months Ended December 31, 2019 December 31, 2019 (In
Slide 26: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF FREE CASH FLOW BEFORE GROWTH CAPITAL EXPENDITURES TO NET CASH PROVIDED BY OPERATING ACTIVITIES (Unaudited) Three Months Ended September 30, 2019 (In thousands) 2019 2018 Net cash provided by operating activities $ 44,657 $ 48,3
Slide 27: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF FREE CASH FLOW BEFORE GROWTH CAPITAL EXPENDITURES TO NET CASH PROVIDED BY OPERATING ACTIVITIES (Unaudited) Twelve Months Ended December 31, (In millions) 2018 Net cash provided by operating activities $ 192,022 Less capital exp
Slide 28: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF CASH FLOW BEFORE GROWTH CAPITAL EXPENDITURES TO NET CASH PROVIDED BY OPERATING ACTIVITIES (Unaudited) Projected Twelve Months Ending December 31 2019 (In thousands) Low High Net cash provided by operating activities $ 184 $ 204
Slide 29: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF RETURN ON INVESTED CAPITAL TO NET INCOME AS REPORTED (a) (Unaudited) Trailing Twelve (a) Return on invested capital excluding unusual items Months for Period is net income (loss) excluding unusual items, and Ended after-tax int
Slide 30: © 2019 Harsco Corporation. This document and its contents remains the property of Harsco
© 2019 Harsco Corporation. This document and its contents remains the property of Harsco Corporation. Any disclosure and/or copying of this document and/or its contents without the prior written approval of Harsco Corporation is prohibited. All Rights Reserved © 2019 Harsco Corporation. This documen