Slide 1: Q4 2019 Results & Outlook Conference Call
Q4 2019 Results & Outlook Conference Call February 21, 2020 © 2020 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: Recent Environmental Innovations & Industry Collaboration
RECENT ENVIRONMENTAL INNOVATIONS & INDUSTRY COLLABORATION Collaboration with industry sustainability initiatives Ü Dec. 2019: Harsco Ü Dec. 2019: Harsco Environmental invests in Environmental joins Carbicrete, a Canadian ArcelorMittal, Daimler, technology company BMW, and others in developing cement
Slide 4: Q4 2019 Financial Summary
Q4 2019 FINANCIAL SUMMARY KEY PERFORMANCE INDICATORS CHANGE VS. 2018 Ü Q4 adjusted operating income of $31 million consistent with market $ in millions except EPS; Continuing Q4 2019 $ % or bps update provide in January Operations Revenues, as reported 400 68 21% Ü Environmental delivered double dig
Slide 5: Q4 2019 Environmental
Q4 2019 ENVIRONMENTAL SUMMARY RESULTS ADJUSTED OPERATING INCOME BRIDGE1 $ in millions $ in millions 30 Q4 Q4 26.9 % or bps 2019 2018 3.1 25.2 25 Revenues, as reported 243 262 (7)% (2.1) (2.5) (0.2) 20 Operating Income – Q4 2018 New-Exited LST/Services Ni & Applied SG&A/Other Q4 2019 27 28 (4)% GAAP
Slide 6: Q4 2019 Clean Earth
Q4 2019 CLEAN EARTH SUMMARY RESULTS ADJUSTED OPERATING INCOME BRIDGE1 $ in millions $ in millions 20 1.5 14.2 Q4 Q4 15 2.4 % or bps 2019 2018 4.2 0.8 10 5.3 Revenues, as reported 82 67 22% 5 0 Q4 2018 Contaminated Hazardous Dredge SG&A/ Q4 2019 Operating Income – 9 1 506% Materials Waste Other GAAP
Slide 7: Q4 2019 Rail
Q4 2019 RAIL SUMMARY RESULTS ADJUSTED OPERATING INCOME BRIDGE1 $ in millions $ in millions 1.3 10 8.5 Q4 Q4 % or bps 2019 2018 5 (6.2) Revenues, as reported 75 69 8% 0 (1.0) -5 (5.6) (3.0) Operating Income – (3.2) 7.8 (142)% Q4 2018 Machine Aftermarket Contract Other Q4 2019 GAAP Sales Parts / Protr
Slide 8: 2019 Financial Summary
2019 FINANCIAL SUMMARY KEY PERFORMANCE INDICATORS CHANGE VS. 2018 Ü Revenues of $1.5B reflect acquisition of Clean Earth (June) $ in millions except EPS; Continuing 2019 $ % or bps Operations and reporting Industrial as discontinued operations for the full Revenues, as reported 1,504 156 12% year Op
Slide 9: 2020 Segment Outlook
2020 SEGMENT OUTLOOK Excluding unusual items 2020 VERSUS 2019 REVENUES ▲ Low-single digits percentage ADJUSTED EBITDA ▲ Low-single digits percentage DRIVERS + New contracts, service and product demand growth, cost/improvement savings - Exited sites, SG&A investments REVENUES ▲ $310 to $330 million;
Slide 10: 2020 Outlook - Consolidated
2020 OUTLOOK - CONSOLIDATED 2020 Outlook GAAP OPERATING INCOME $124 - 154M ADJUSTED EBITDA1 $280 - 310M GAAP DILUTED EARNINGS PER SHARE $0.63 - 0.91 ADJUSTED DILUTED EARNINGS PER SHARE1 $0.84 to $1.12 FREE CASH FLOW BEFORE GROWTH CAPITAL1 $80 - 110M FREE CASH FLOW2 $10 - 40M 2020 ADJUSTED EBITDA GUI
Slide 11: Q1 2020 Outlook
Q1 2020 OUTLOOK YEAR-OVER-YEAR CONSIDERATIONS INCLUDE: Adjusted EBITDA1 is expected to be between $ $ 43M – 48M Lower services and products demand, site exits and FX; partially offset by new sites and cost initiatives Adjusted diluted earnings per share1 of $ $ 0.01 – 0.04 Improved processing volume
Slide 12: Q&A
Q&A 12 © 2020 Harsco Corporation. All Rights Reserved. This document and the information set forth herein are the property of Harsco Corporation
Slide 13: Appendix
Appendix © 2020 Harsco Corporation. All Rights Reserved. This document and the information set forth herein are the property of Harsco Corporation
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 PER SHARE FROM CONTINUING OPERATIONS AS REPORTED (Unaudited) Three Months Ended Twelve Months Ended December 31 December 31 2019 2018 2019 2018
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 (Q4 2019 $7.3 million pre-tax; Full year 2019 $25.2 million pre- tax). (b) Fair value adjustment to contingent consideration liability related to the acquisiti
Slide 16: 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 Twelve Months Ending Ending March 31 December 31 202
Slide 17: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF ADJUSTED OPERATING INCOME (LOSS) 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 Decem
Slide 18: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF ADJUSTED OPERATING INCOME (LOSS) 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 Decem
Slide 19: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF ADJUSTED OPERATING INCOME (LOSS) BY SEGMENT TO OPERATING INCOME (LOSS) AS REPORTED BY SEGMENT (Unaudited) Harsco Harsco Clean Harsco Consolidated (In thousands) Environmental Earth Rail Corporate Totals Twelve Months Ended Dece
Slide 20: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF ADJUSTED OPERATING INCOME (LOSS) BY SEGMENT TO OPERATING INCOME (LOSS) AS REPORTED BY SEGMENT (Unaudited) Harsco Harsco Clean Harsco Consolidated (In thousands) Environmental Earth Rail Corporate Totals Twelve Months Ended Dece
Slide 21: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF ADJUSTED EARNINGS BEFORE INTEREST, INCOME TAXES, AND DEPRECIATION AND AMORTIZATION INCLUDING HARSCO CLEAN EARTH FOR THE SIX MONTHS ENDED JUNE 30, 2019 TO INCOME FROM CONTINUING OPERATIONS AS REPORTED (a) (Unaudited) Twelve Mont
Slide 22: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF PROJECTED ADJUSTED EARNINGS BEFORE INTEREST, INCOME TAXES, AND DEPRECIATION AND AMORTIZATION TO PROJECTED INCOME FROM CONTINUING OPERATIONS(Unaudited) Projected Projected Three Months Ending Twelve Months Ending March 31 Decemb
Slide 23: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF ADJUSTED OPERATING INCOME INCLUDING DISCONTINUED OPERATIONS TO OPERATING INCOME(Unaudited) For the Year For the Three Months Ended Ended March 31, September 30, December 31, December 31, (In thousands) 2018 June 30, 2018 2018 2
Slide 24: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF ADJUSTED OPERATING INCOME INCLUDING DISCONTINUED OPERATIONS TO OPERATING INCOME(Unaudited) For the Six For the Three Months Ended Months Ended March 31, (In thousands) 2019 June 30, 2019 June 30, 2019 Operating income (a) $ 19,
Slide 25: 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 (USED) BY OPERATING ACTIVITIES (Unaudited) Three Months Ended Twelve Months Ended December 31, 2019 December 31, 2019 (In thousands) 2019 2018 2019 2018 Net
Slide 26: 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 2020 (In millions) Low High Net cash provided by operating activities $ 180 $ 220
Slide 27: © 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