Enviri Corporation (NYSE: NVRI) today reported fourth quarter
2023 results. On a U.S. GAAP ("GAAP") basis, the fourth quarter of
2023 diluted loss per share from continuing operations was $0.17,
after strategic expenses and other unusual items. The adjusted
diluted loss per share from continuing operations in the fourth
quarter of 2023 was $0.07. These figures compare with fourth
quarter of 2022 GAAP diluted loss per share from continuing
operations of $0.30 (including a $15 million intangible asset
impairment within Harsco Environmental) and adjusted diluted
earnings per share from continuing operations of $0.01.
GAAP operating income from continuing operations
for the fourth quarter of 2023 was $28 million. Adjusted EBITDA was
$73 million in the quarter, compared to the Company's previously
provided guidance range of $62 million to $69 million.
“Enviri had a strong 2023, finishing the year
with solid quarterly results and significant momentum in both Clean
Earth and Harsco Environmental,” said Enviri Chairman and CEO Nick
Grasberger. “Our results benefited from healthy end-market demand
and continuing operational excellence across our businesses. The
earnings growth in both the quarter and full year was supported by
efficiency and growth initiatives and pricing actions implemented
across the Company. I would like to thank our employees for their
continued commitment to our customers and our company.”
“Looking forward, we expect to maintain our
strong business momentum and that our operating results will
improve further in 2024, with Clean Earth again leading the way. We
also expect to further improve our debt leverage position in 2024.
In addition, we are pleased to see improving financial and
operating trends in Rail and our efforts to strengthen and sell the
business remain ongoing. We remain optimistic about Enviri’s growth
potential and the value within each of our businesses, and we will
continue to deliver on our strategic priorities to create value for
shareholders in the coming years.”
Enviri Corporation—Selected Fourth Quarter
Results
($ in millions, except per share amounts) |
|
Q4 2023 |
|
Q4 2022 |
Revenues |
|
$ |
529 |
|
|
$ |
468 |
|
Operating
income/(loss) from continuing operations - GAAP |
|
$ |
28 |
|
|
$ |
2 |
|
Diluted
EPS from continuing operations - GAAP |
|
$ |
(0.17 |
) |
|
$ |
(0.30 |
) |
Adjusted
EBITDA - Non GAAP |
|
$ |
73 |
|
|
$ |
61 |
|
Adjusted
EBITDA margin - Non GAAP |
|
|
13.9 |
% |
|
|
12.9 |
% |
Adjusted diluted EPS from continuing operations - Non GAAP |
|
$ |
(0.07 |
) |
|
$ |
0.01 |
|
Note: Adjusted diluted earnings (loss) per
share from continuing operations and adjusted EBITDA details
presented throughout this release are adjusted for unusual items;
in addition, adjusted diluted earnings per share from continuing
operations is adjusted for acquisition-related amortization
expense. See below for definition of these non-GAAP measures and
reconciliations to the most directly comparable GAAP financial
measures.
Consolidated Fourth Quarter Operating
ResultsConsolidated revenues from continuing operations
were $529 million, an increase of 13 percent compared with the
prior-year quarter. Both Clean Earth and Harsco Environmental
realized an increase in revenues compared to the fourth quarter of
2022 due to higher services demand and pricing. Foreign currency
translation positively impacted fourth quarter 2023 revenues by
approximately $4 million, compared with the prior-year period.
The Company's GAAP operating income from
continuing operations was $28 million for the fourth quarter of
2023, compared with GAAP operating income of $2 million in the same
quarter of 2022. Meanwhile, adjusted EBITDA totaled $73 million in
the fourth quarter of 2023 versus $61 million in the fourth quarter
of the prior year. Both Harsco Environmental and Clean Earth
achieved higher adjusted EBITDA versus the comparable quarter of
2022.
Enviri Corporation—Selected 2023
Results
($ in millions, except per share amounts) |
|
2023 |
|
2022 |
Revenues |
|
$ |
2,069 |
|
|
$ |
1,889 |
|
Operating
income (loss) from continuing operations - GAAP |
|
$ |
111 |
|
|
$ |
(57 |
) |
Diluted
EPS from continuing operations - GAAP |
|
$ |
(0.57 |
) |
|
$ |
(1.73 |
) |
Adjusted
EBITDA - excluding unusual items |
|
$ |
293 |
|
|
$ |
229 |
|
Adjusted
EBITDA margin - excluding unusual items |
|
|
14.2 |
% |
|
|
12.1 |
% |
Adjusted diluted EPS from continuing operations - excluding unusual
items |
|
$ |
(0.12 |
) |
|
$ |
0.10 |
|
Note: Adjusted diluted earnings (loss) per
share from continuing operations and adjusted EBITDA details
presented throughout this release are adjusted for unusual items;
in addition, adjusted diluted earnings per share from continuing
operations is adjusted for acquisition-related amortization
expense. See below for definition of these non-GAAP measures and
reconciliations to the most directly comparable GAAP financial
measures.
Consolidated Full Year 2023 Operating
ResultsConsolidated revenues from continuing operations
were $2.07 billion in 2023, compared to $1.89 billion in 2022. The
revenues increase for the year is again attributable to higher
volumes and pricing in both the Clean Earth and Harsco
Environmental segments. Foreign currency translation negatively
impacted 2023 revenues by approximately $8 million compared with
the prior year.
GAAP operating income from continuing operations
was $111 million in 2023, while the GAAP operating loss from
continuing operations in 2022 was $57 million. Adjusted EBITDA was
$293 million and $229 million for these years, respectively, with
the change in adjusted results reflecting the above-mentioned items
that favorably impacted revenues along with various growth and
improvement initiatives across the Company.
On a GAAP basis, the diluted loss per share from
continuing operations in 2023 was $0.57, and this figure compares
with a diluted loss per share in 2022 of $1.73. These figures
include various unusual items in each year (including a Clean Earth
non-cash goodwill impairment charge of $105 million in 2022). The
adjusted diluted loss per share from continuing operations was
$0.12 in 2023, compared with adjusted diluted earnings per share
from continuing operations of $0.10 in 2022.
Fourth Quarter Business Review
Harsco Environmental
($ in millions) |
|
Q4 2023 |
|
Q4 2022 |
Revenues |
|
$ |
292 |
|
|
$ |
257 |
|
Operating
income - GAAP |
|
$ |
25 |
|
|
$ |
(4 |
) |
Adjusted
EBITDA - Non GAAP |
|
$ |
56 |
|
|
$ |
43 |
|
Adjusted EBITDA margin - Non GAAP |
|
|
19.3 |
% |
|
|
16.7 |
% |
Harsco Environmental revenues totaled $292
million in the fourth quarter of 2023, an increase of 14 percent
compared with the prior-year quarter. This increase is attributable
to higher services and products demand and price increases. The
segment's GAAP operating income and adjusted EBITDA totaled $25
million and $56 million, respectively, in the fourth quarter of
2023. These figures compare with a GAAP operating loss of $4
million and adjusted EBITDA of $43 million in the prior-year
period. The year-on-year change in adjusted earnings reflects the
impact of higher demand, including the impact of new services
contracts, and higher prices. As a result, Harsco Environmental's
adjusted EBITDA margin increased to 19.3 percent in the fourth
quarter of 2023 versus 16.7 percent in the comparable quarter of
2022.
Clean Earth
($ in millions) |
|
Q4 2023 |
|
Q4 2022 |
Revenues |
|
$ |
237 |
|
|
$ |
211 |
|
Operating income - GAAP |
|
$ |
16 |
|
|
$ |
14 |
|
Adjusted EBITDA - Non GAAP |
|
$ |
29 |
|
|
$ |
25 |
|
Adjusted EBITDA margin - Non GAAP |
|
|
12.2 |
% |
|
|
11.6 |
% |
Clean Earth revenues totaled $237 million in the
fourth quarter of 2023, a 12 percent increase over the prior-year
quarter as a result of higher services pricing and increased
demand. The segment's GAAP operating income was $16 million and
adjusted EBITDA was $29 million in the fourth quarter of 2023.
These figures compare with GAAP operating income of $14 million and
adjusted EBITDA of $25 million in the prior-year period. The
year-on-year improvement in adjusted earnings reflects the
above-mentioned factors and efficiency initiatives, partially
offset by higher incentive compensation, severance and other
investments. As a result, Clean Earth's adjusted EBITDA margin
increased to 12.2 percent in the fourth quarter of 2023 versus 11.6
percent in the comparable quarter of 2022.
Cash FlowNet cash provided by
operating activities was $68 million in the fourth quarter of 2023,
compared with net cash provided by operating activities of $19
million in the prior-year period. Free cash flow (excluding Rail)
was $25 million in the fourth quarter of 2023, compared with $3
million in the prior-year period. The change in free cash flow
compared with the prior-year quarter is attributable to higher cash
earnings and working capital improvements.
For the full-year 2023, net cash provided by
operating activities totaled $114 million, compared with net cash
provided by operating activities of $151 million in 2022. Free cash
flow (excluding Rail) was $24 million in 2023, compared with $75
million in the prior year. The change in full-year free cash flow
can be attributed to the Company's accounts receivable
securitization program implemented in 2022 as well as higher cash
interest payments and net capital spending, partially offset by a
higher cash earnings from improved business performance and
favorable changes in working capital in 2023 from the Company's
continuing operations.
2024 OutlookThe Company's 2024
guidance anticipates that it will again realize an improvement in
financial performance compared with 2023. Clean Earth and Harsco
Environmental are both expected to contribute to the growth. This
outlook contemplates that economic conditions will remain stable
and that the Company will benefit from incremental growth and
improvement initiatives. Key business drivers for each segment as
well as other 2024 guidance details are as follows:
Harsco Environmental adjusted
EBITDA is projected to be modestly above prior-year results. Higher
services volumes and pricing, site improvement initiatives and new
contracts are expected to be partially offset by lower commodities
and certain product volumes as well as personnel investments.
Clean Earth adjusted EBITDA is
expected to increase versus 2023 as a result of higher services
pricing (net of inflation), efficiency initiatives and higher
volumes, offsetting the impacts of a less favorable project-related
business mix as well as certain other 2023 items not repeating
(Stericycle settlement).
Corporate spending is
anticipated to be comparable with 2023.
2024 Full Year Outlook (Continuing
Operations) |
|
|
|
GAAP Operating Income |
$122 - $142 million |
Adjusted EBITDA |
$300 - $320 million |
GAAP Diluted Earnings/(Loss) Per Share from Continuing
Operations |
$(0.28) - $(0.52) |
Adjusted Diluted Earnings/(Loss) Per Share from Continuing
Operations |
$(0.00) - $(0.25) |
Free Cash Flow |
$20 - $40 million |
Net Interest Expense |
$103 - $108 million |
Account Receivable Securitization Fees |
$10 - $11 million |
Pension Expense (Non-Operating) |
$17 million |
Tax Expense, Excluding Any Unusual Items |
$23 - $29 million |
Net Capital Expenditures |
$130 - $140 million |
|
|
Q1 2024
Outlook (Continuing Operations) |
|
GAAP Operating Income |
$19 - $26 million |
Adjusted EBITDA |
$63 - $70 million |
GAAP Diluted Earnings/(Loss) Per Share from Continuing
Operations |
$(0.12) - $(0.20) |
Adjusted Diluted Earnings/(Loss) Per Share from Continuing
Operations |
$(0.05) - $(0.13) |
Conference CallThe Company will
hold a conference call today at 9:00 a.m. Eastern Time to
discuss its results and respond to questions from the investment
community. Those who wish to listen to the conference call webcast
should visit the Investor Relations section of the Company’s
website at www.enviri.com. The live call also can be accessed by
dialing (833) 630-1956, or (412) 317-1837 for international
callers. Please ask to join the Enviri Corporation call. Listeners
are advised to dial in approximately ten minutes prior to the call.
If you are unable to listen to the live call, the webcast will be
archived on the Company’s website.
Forward-Looking StatementsThe
nature of the Company's business, together with the number of
countries in which it operates, subject it to changing economic,
competitive, regulatory and technological conditions, risks and
uncertainties. In accordance with the "safe harbor" provisions of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, the Company provides the following
cautionary remarks regarding important factors that, among others,
could cause future results to differ materially from the results
contemplated by forward-looking statements, including the
expectations and assumptions expressed or implied herein.
Forward-looking statements contained herein could include, among
other things, statements about management's confidence in and
strategies for performance; expectations for new and existing
products, technologies and opportunities; and expectations
regarding growth, sales, cash flows, and earnings. Forward-looking
statements can be identified by the use of such terms as "may,"
"could," "expect," "anticipate," "intend," "believe," "likely,"
"estimate," "outlook," "plan," "contemplate," "project" or other
comparable terms.
Factors that could cause actual results to
differ, perhaps materially, from those implied by forward-looking
statements include, but are not limited to: (1) the Company's
ability to successfully enter into new contracts and complete new
acquisitions, divestitures, or strategic ventures in the time-frame
contemplated or at all, including the Company's ability to timely
divest the Rail business; (2) the Company’s inability to comply
with applicable environmental laws and regulations; (3) the
Company’s inability to obtain, renew, or maintain compliance with
its operating permits or license agreements; (4) various economic,
business, and regulatory risks associated with the waste management
industry; (5) the seasonal nature of the Company's business; (6)
risks caused by customer concentration,the long-term nature of
customer contracts, and the competitive nature of the industries in
which the Company operates; (7) the outcome of any disputes with
customers, contractors and subcontractors; (8) the financial
condition of the Company's customers, including the ability of
customers (especially those that may be highly leveraged or have
inadequate liquidity) to maintain their credit availability; (9)
higher than expected claims under the Company’s insurance policies,
or losses that are uninsurable or that exceed existing insurance
coverage; (10) market and competitive changes, including pricing
pressures, market demand and acceptance for new products, services
and technologies; changes in currency exchange rates, interest
rates, commodity and fuel costs and capital costs; (11) the
Company's ability to negotiate, complete, and integrate strategic
transactions and joint ventures with strategic partners; (12) the
Company’s ability to effectively retain key management and
employees, including due to unanticipated changes to demand for the
Company’s services, disruptions associated with labor disputes, and
increased operating costs associated with union organizations; (13)
the Company's inability or failure to protect its intellectual
property rights from infringement in one or more of the many
countries in which the Company operates; (14) failure to
effectively prevent, detect or recover from breaches in the
Company's cybersecurity infrastructure; (15) changes in the
worldwide business environment in which the Company operates,
including changes in general economic and industry conditions and
cyclical slowdowns; (16) fluctuations in exchange rates between the
U.S. dollar and other currencies in which the Company conducts
business; (17) unforeseen business disruptions in one or more of
the many countries in which the Company operates due to changes in
economic conditions, changes in governmental laws and regulations,
including environmental, occupational health and safety, tax and
import tariff standards and amounts; political instability, civil
disobedience, armed hostilities, public health issues or other
calamities; (18) liability for and implementation of environmental
remediation matters; (19) product liability and warranty claims
associated with the Company’s operations; (20) the Company’s
ability to comply with financial covenants and obligations to
financial counterparties; (21) the Company’s outstanding
indebtedness and exposure to derivative financial instruments that
may be impacted by, among other factors, changes in interest rates;
(22) tax liabilities and changes in tax laws; (23) changes in the
performance of equity and bond markets that could affect, among
other things, the valuation of the assets in the Company's pension
plans and the accounting for pension assets, liabilities and
expenses; (24) risk and uncertainty associated with intangible
assets; and the other risk factors listed from time to time in the
Company's SEC reports. A further discussion of these, along with
other potential risk factors, can be found in Part I, Item 1A,
“Risk Factors” of the Company’s most recently filed Annual Report
on Form 10-K, as updated by subsequent Quarterly Reports on Form
10-Q, which are filed with the Securities and Exchange Commission.
The Company cautions that these factors may not be exhaustive and
that many of these factors are beyond the Company's ability to
control or predict. Accordingly, forward-looking statements
should not be relied upon as a prediction of actual results.
The Company undertakes no duty to update forward-looking statements
except as may be required by law.
NON-GAAP MEASURESMeasurements
of financial performance not calculated in accordance with GAAP
should be considered as supplements to, and not substitutes for,
performance measurements calculated or derived in accordance with
GAAP. Any such measures are not necessarily comparable to other
similarly-titled measurements employed by other companies. The most
comparable GAAP measures are included within the definitions below
and reconciliations of these non-GAAP measures to the most directly
comparable GAAP financial measures are included at the end of this
press release.
Adjusted diluted earnings per share from
continuing operations: Adjusted diluted earnings (loss)
per share from continuing operations is a non-GAAP financial
measure and consists of diluted earnings (loss) per share from
continuing operations adjusted for unusual items and
acquisition-related intangible asset amortization expense. It is
important to note that such intangible assets contribute to revenue
generation and that intangible asset amortization related to past
acquisitions will recur in future periods until such intangible
assets have been fully amortized. The Company’s management believes
Adjusted diluted earnings per share from continuing operations is
useful to investors because it provides an overall understanding of
the Company’s historical and future prospects. Exclusion of unusual
items permits evaluation and comparison of results for the
Company’s core business operations, and it is on this basis that
management internally assesses the Company’s performance. Exclusion
of acquisition-related intangible asset amortization expense, the
amount of which can vary by the timing, size and nature of the
Company’s acquisitions, facilitates more consistent internal
comparisons of operating results over time between the Company’s
newly acquired and long-held businesses, and comparisons with both
acquisitive and non-acquisitive peer companies.
Adjusted EBITDA: Adjusted
EBITDA is a non-GAAP financial measure and consists of income
(loss) from continuing operations adjusted to add back income tax
expense; equity income of unconsolidated entities, net; net
interest expense; defined benefit pension income (expense);
facility fees and debt-related income (expense); and depreciation
and amortization (excluding amortization of deferred financing
costs); and excludes unusual items. Segment Adjusted EBITDA
consists of operating income from continuing operations adjusted to
exclude unusual items and add back depreciation and amortization
(excluding amortization of deferred financing costs). The sum
of the Segments’ Adjusted EBITDA and Corporate Adjusted EBITDA
equals consolidated Adjusted EBITDA. The Company‘s management
believes Adjusted EBITDA is meaningful to investors because
management reviews Adjusted EBITDA in assessing and evaluating
performance.
Free cash flow: Free cash flow
is a non-GAAP financial measure and consists of net cash provided
(used) by operating activities less capital expenditures and
expenditures for intangible assets; and plus capital expenditures
for strategic ventures, total proceeds from sales of assets and
certain transaction-related / debt-refinancing expenditures. The
Company's management believes that Free cash flow is meaningful to
investors because management reviews Free cash flow for planning
and performance evaluation purposes. It is important to note that
Free cash flow does not represent the total residual cash flow
available for discretionary expenditures since other
non-discretionary expenditures, such as mandatory debt service
requirements and settlements of foreign currency forward exchange
contracts, are not deducted from this measure. Free cash flow
excludes the former Harsco Rail Segment since the segment is
reported as discontinued operations. This presentation provides a
basis for comparison of ongoing operations and prospects.
About EnviriEnviri is transforming the world to
green, as a trusted global leader in providing a broad range of
environmental services and related innovative solutions. The
company serves a diverse customer base by offering critical recycle
and reuse solutions for their waste streams, enabling customers to
address their most complex environmental challenges and to achieve
their sustainability goals. Enviri is based in Philadelphia,
Pennsylvania and operates in more than 150 locations in over 30
countries. Additional information can be found at
www.enviri.com.
ENVIRI
CORPORATIONCONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Twelve
Months Ended |
|
|
December 31 |
|
December 31 |
(In thousands,
except per share amounts) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Revenues from continuing operations: |
|
|
|
|
|
|
|
|
Revenues |
|
$ |
528,816 |
|
|
$ |
468,302 |
|
|
$ |
2,069,225 |
|
|
$ |
1,889,065 |
|
Costs and expenses from continuing
operations: |
|
|
|
|
|
|
|
|
Cost of sales |
|
|
417,604 |
|
|
|
380,314 |
|
|
|
1,633,662 |
|
|
|
1,553,335 |
|
Selling, general and administrative expenses |
|
|
79,209 |
|
|
|
66,832 |
|
|
|
312,383 |
|
|
|
268,066 |
|
Research and development expenses |
|
|
339 |
|
|
|
145 |
|
|
|
1,286 |
|
|
|
690 |
|
Goodwill and other intangible asset impairment charges |
|
|
— |
|
|
|
15,000 |
|
|
|
— |
|
|
|
119,580 |
|
Property, plant and equipment impairment charge |
|
|
— |
|
|
|
— |
|
|
|
14,099 |
|
|
|
— |
|
Other expense (income), net |
|
|
3,745 |
|
|
|
4,222 |
|
|
|
(3,219 |
) |
|
|
4,737 |
|
Total costs and expenses |
|
|
500,897 |
|
|
|
466,513 |
|
|
|
1,958,211 |
|
|
|
1,946,408 |
|
Operating income (loss) from continuing
operations |
|
|
27,919 |
|
|
|
1,789 |
|
|
|
111,014 |
|
|
|
(57,343 |
) |
Interest income |
|
|
1,969 |
|
|
|
1,270 |
|
|
|
6,670 |
|
|
|
3,559 |
|
Interest expense |
|
|
(27,081 |
) |
|
|
(23,621 |
) |
|
|
(103,872 |
) |
|
|
(75,156 |
) |
Facility fees and debt-related income (expense) |
|
|
(2,863 |
) |
|
|
(2,062 |
) |
|
|
(10,762 |
) |
|
|
(2,956 |
) |
Defined benefit pension income (expense) |
|
|
(5,422 |
) |
|
|
2,163 |
|
|
|
(21,600 |
) |
|
|
8,938 |
|
Income (loss) from continuing operations before income
taxes and equity income |
|
|
(5,478 |
) |
|
|
(20,461 |
) |
|
|
(18,550 |
) |
|
|
(122,958 |
) |
Income tax benefit (expense) from continuing operations |
|
|
(6,834 |
) |
|
|
(2,899 |
) |
|
|
(28,185 |
) |
|
|
(10,381 |
) |
Equity income (loss) of unconsolidated entities, net |
|
|
(168 |
) |
|
|
195 |
|
|
|
(761 |
) |
|
|
(178 |
) |
Income (loss) from continuing operations |
|
|
(12,480 |
) |
|
|
(23,165 |
) |
|
|
(47,496 |
) |
|
|
(133,517 |
) |
Discontinued operations: |
|
|
|
|
|
|
|
|
Income (loss) from discontinued businesses |
|
|
(44,110 |
) |
|
|
(15,076 |
) |
|
|
(39,252 |
) |
|
|
(50,301 |
) |
Income tax benefit (expense) from discontinued businesses |
|
|
3,014 |
|
|
|
2,105 |
|
|
|
(1,350 |
) |
|
|
7,387 |
|
Income (loss) from discontinued operations, net of
tax |
|
|
(41,096 |
) |
|
|
(12,971 |
) |
|
|
(40,602 |
) |
|
|
(42,914 |
) |
Net income (loss) |
|
|
(53,576 |
) |
|
|
(36,136 |
) |
|
|
(88,098 |
) |
|
|
(176,431 |
) |
Less: Net loss (income) attributable to noncontrolling
interests |
|
|
(779 |
) |
|
|
(582 |
) |
|
|
1,977 |
|
|
|
(3,638 |
) |
Net income (loss) attributable to Enviri
Corporation |
|
$ |
(54,355 |
) |
|
$ |
(36,718 |
) |
|
$ |
(86,121 |
) |
|
$ |
(180,069 |
) |
Amounts attributable to Enviri Corporation common
stockholders: |
|
|
|
|
|
|
|
|
Income (loss) from continuing operations, net of tax |
|
$ |
(13,259 |
) |
|
$ |
(23,747 |
) |
|
$ |
(45,519 |
) |
|
$ |
(137,155 |
) |
Income (loss) from discontinued operations, net of tax |
|
|
(41,096 |
) |
|
|
(12,971 |
) |
|
|
(40,602 |
) |
|
|
(42,914 |
) |
Net income (loss) attributable to Enviri Corporation common
stockholders |
|
$ |
(54,355 |
) |
|
$ |
(36,718 |
) |
|
$ |
(86,121 |
) |
|
$ |
(180,069 |
) |
|
|
|
|
|
|
|
|
|
Weighted-average shares of common stock outstanding |
|
|
79,881 |
|
|
|
79,564 |
|
|
|
79,796 |
|
|
|
79,493 |
|
Basic earnings (loss) per common share
attributable to Enviri Corporation common
stockholders: |
Continuing operations |
|
$ |
(0.17 |
) |
|
$ |
(0.30 |
) |
|
$ |
(0.57 |
) |
|
$ |
(1.73 |
) |
Discontinued operations |
|
$ |
(0.51 |
) |
|
$ |
(0.16 |
) |
|
$ |
(0.51 |
) |
|
$ |
(0.54 |
) |
Basic earnings (loss) per share attributable to Enviri
Corporation common stockholders |
|
$ |
(0.68 |
) |
|
$ |
(0.46 |
) |
|
$ |
(1.08 |
) |
|
$ |
(2.27 |
) |
|
|
|
|
|
|
|
|
|
Diluted weighted-average shares of common stock
outstanding |
|
|
79,881 |
|
|
|
79,564 |
|
|
|
79,796 |
|
|
|
79,493 |
|
Diluted earnings (loss) per common share
attributable to Enviri Corporation common
stockholders: |
Continuing operations |
|
$ |
(0.17 |
) |
|
$ |
(0.30 |
) |
|
$ |
(0.57 |
) |
|
$ |
(1.73 |
) |
Discontinued operations |
|
$ |
(0.51 |
) |
|
$ |
(0.16 |
) |
|
$ |
(0.51 |
) |
|
$ |
(0.54 |
) |
Diluted earnings (loss) per share attributable to
Enviri Corporation common stockholders |
|
$ |
(0.68 |
) |
|
$ |
(0.46 |
) |
|
$ |
(1.08 |
) |
|
$ |
(2.27 |
) |
ENVIRI CORPORATIONCONSOLIDATED BALANCE
SHEETS |
|
|
|
|
|
|
|
|
|
(In
thousands) |
|
December 31 2023 |
|
December 31 2022 |
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
121,239 |
|
|
$ |
81,332 |
|
Restricted cash |
|
|
3,375 |
|
|
|
3,762 |
|
Trade accounts receivable, net |
|
|
280,772 |
|
|
|
264,428 |
|
Other receivables |
|
|
33,857 |
|
|
|
25,379 |
|
Inventories |
|
|
86,292 |
|
|
|
81,375 |
|
Prepaid expenses |
|
|
29,926 |
|
|
|
30,583 |
|
Current portion of assets held-for-sale |
|
|
255,428 |
|
|
|
266,335 |
|
Other current assets |
|
|
16,467 |
|
|
|
14,541 |
|
Total current assets |
|
|
827,356 |
|
|
|
767,735 |
|
Property, plant and equipment, net |
|
|
663,284 |
|
|
|
656,875 |
|
Right-of-use assets, net |
|
|
95,841 |
|
|
|
101,253 |
|
Goodwill |
|
|
767,952 |
|
|
|
759,253 |
|
Intangible assets, net |
|
|
324,861 |
|
|
|
352,160 |
|
Deferred income tax assets |
|
|
15,322 |
|
|
|
17,489 |
|
Assets held-for-sale |
|
|
90,930 |
|
|
|
70,105 |
|
Other assets |
|
|
69,006 |
|
|
|
65,984 |
|
Total assets |
|
$ |
2,854,552 |
|
|
$ |
2,790,854 |
|
LIABILITIES |
|
|
|
|
Current liabilities: |
|
|
|
|
Short-term borrowings |
|
$ |
14,871 |
|
|
$ |
7,751 |
|
Current maturities of long-term debt |
|
|
15,558 |
|
|
|
11,994 |
|
Accounts payable |
|
|
198,576 |
|
|
|
205,577 |
|
Accrued compensation |
|
|
73,553 |
|
|
|
43,595 |
|
Income taxes payable |
|
|
6,133 |
|
|
|
3,640 |
|
Current portion of operating lease liabilities |
|
|
25,119 |
|
|
|
25,521 |
|
Current portion of liabilities of assets held-for-sale |
|
|
172,036 |
|
|
|
159,004 |
|
Other current liabilities |
|
|
149,387 |
|
|
|
140,199 |
|
Total current liabilities |
|
|
655,233 |
|
|
|
597,281 |
|
Long-term debt |
|
|
1,401,437 |
|
|
|
1,336,995 |
|
Retirement plan liabilities |
|
|
45,087 |
|
|
|
46,601 |
|
Operating lease liabilities |
|
|
72,145 |
|
|
|
75,246 |
|
Liabilities of assets held-for-sale |
|
|
4,029 |
|
|
|
9,463 |
|
Environmental liabilities |
|
|
25,682 |
|
|
|
26,880 |
|
Deferred tax liabilities |
|
|
28,810 |
|
|
|
30,069 |
|
Other liabilities |
|
|
46,721 |
|
|
|
45,277 |
|
Total liabilities |
|
|
2,279,144 |
|
|
|
2,167,812 |
|
ENVIRI CORPORATION STOCKHOLDERS’ EQUITY |
|
|
|
|
Common stock |
|
|
146,105 |
|
|
|
145,448 |
|
Additional paid-in capital |
|
|
238,416 |
|
|
|
225,759 |
|
Accumulated other comprehensive loss |
|
|
(539,694 |
) |
|
|
(567,636 |
) |
Retained earnings |
|
|
1,528,320 |
|
|
|
1,614,441 |
|
Treasury stock |
|
|
(849,996 |
) |
|
|
(848,570 |
) |
Total Enviri Corporation stockholders’ equity |
|
|
523,151 |
|
|
|
569,442 |
|
Noncontrolling interests |
|
|
52,257 |
|
|
|
53,600 |
|
Total equity |
|
|
575,408 |
|
|
|
623,042 |
|
Total liabilities and equity |
|
$ |
2,854,552 |
|
|
$ |
2,790,854 |
|
ENVIRI
CORPORATIONCONSOLIDATED STATEMENTS OF CASH
FLOWS (Unaudited) |
|
|
|
Three Months Ended December 31 |
|
Twelve Months Ended December
31 |
(In
thousands) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
(53,576 |
) |
|
$ |
(36,136 |
) |
|
$ |
(88,098 |
) |
|
$ |
(176,431 |
) |
Adjustments to reconcile net income (loss) to net cash provided by
operating activities: |
Depreciation |
|
|
36,063 |
|
|
|
31,753 |
|
|
|
138,956 |
|
|
|
129,712 |
|
Amortization |
|
|
8,081 |
|
|
|
8,532 |
|
|
|
32,408 |
|
|
|
34,137 |
|
Deferred income tax (benefit) expense |
|
|
(1,132 |
) |
|
|
27 |
|
|
|
1,066 |
|
|
|
(12,029 |
) |
Equity (income) loss of unconsolidated entities, net |
|
|
168 |
|
|
|
(195 |
) |
|
|
761 |
|
|
|
178 |
|
Dividends from unconsolidated entities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
526 |
|
(Gain) loss on early extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,254 |
) |
Goodwill and other intangible asset impairment charges |
|
|
— |
|
|
|
15,000 |
|
|
|
— |
|
|
|
119,580 |
|
Property, plant and equipment impairment charge |
|
|
— |
|
|
|
— |
|
|
|
14,099 |
|
|
|
— |
|
Other, net |
|
|
5,424 |
|
|
|
(808 |
) |
|
|
10,167 |
|
|
|
(427 |
) |
Changes in assets and liabilities, net of acquisitions and
dispositions of businesses: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
9,277 |
|
|
|
19,323 |
|
|
|
(38,889 |
) |
|
|
94,317 |
|
Income tax refunds receivable, reimbursable to
seller |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,687 |
|
Inventories |
|
|
7,138 |
|
|
|
(5,459 |
) |
|
|
(3,410 |
) |
|
|
(16,798 |
) |
Contract assets |
|
|
2,158 |
|
|
|
1,954 |
|
|
|
3,475 |
|
|
|
11,543 |
|
Right-of-use assets |
|
|
8,012 |
|
|
|
7,342 |
|
|
|
32,479 |
|
|
|
29,171 |
|
Accounts payable |
|
|
(4,272 |
) |
|
|
6,234 |
|
|
|
(5,090 |
) |
|
|
19,264 |
|
Accrued interest payable |
|
|
7,049 |
|
|
|
6,916 |
|
|
|
221 |
|
|
|
(643 |
) |
Accrued compensation |
|
|
13,435 |
|
|
|
1,614 |
|
|
|
33,871 |
|
|
|
(3,945 |
) |
Advances on contracts |
|
|
7,664 |
|
|
|
(5,360 |
) |
|
|
(14,160 |
) |
|
|
(11,347 |
) |
Operating lease liabilities |
|
|
(7,718 |
) |
|
|
(6,876 |
) |
|
|
(30,698 |
) |
|
|
(28,374 |
) |
Retirement plan liabilities, net |
|
|
894 |
|
|
|
(6,307 |
) |
|
|
(3,968 |
) |
|
|
(34,136 |
) |
Other assets and liabilities |
|
|
29,611 |
|
|
|
(18,188 |
) |
|
|
31,258 |
|
|
|
(9,204 |
) |
Net cash provided (used) by
operating activities |
|
|
68,276 |
|
|
|
19,366 |
|
|
|
114,448 |
|
|
|
150,527 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
|
(45,395 |
) |
|
|
(35,515 |
) |
|
|
(139,025 |
) |
|
|
(137,160 |
) |
Proceeds from sales of assets |
|
|
4,911 |
|
|
|
2,470 |
|
|
|
6,991 |
|
|
|
10,759 |
|
Expenditures for intangible assets |
|
|
(25 |
) |
|
|
(37 |
) |
|
|
(503 |
) |
|
|
(184 |
) |
Proceeds from note receivable |
|
|
— |
|
|
|
— |
|
|
|
11,238 |
|
|
|
8,605 |
|
Net proceeds (payments) from settlement of foreign currency forward
exchange contracts |
|
|
2,217 |
|
|
|
7,379 |
|
|
|
4,251 |
|
|
|
20,950 |
|
Proceeds (payments) for settlements of interest rate swaps |
|
|
— |
|
|
|
282 |
|
|
|
— |
|
|
|
(2,304 |
) |
Other investing activities, net |
|
|
1 |
|
|
|
53 |
|
|
|
463 |
|
|
|
273 |
|
Net cash used by investing activities |
|
|
(38,291 |
) |
|
|
(25,368 |
) |
|
|
(116,585 |
) |
|
|
(99,061 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Short-term borrowings, net |
|
|
2,831 |
|
|
|
607 |
|
|
|
7,027 |
|
|
|
884 |
|
Current maturities and long-term debt: |
|
|
|
|
|
|
|
|
Additions |
|
|
16,005 |
|
|
|
65,016 |
|
|
|
201,997 |
|
|
|
224,445 |
|
Reductions |
|
|
(23,953 |
) |
|
|
(57,479 |
) |
|
|
(164,475 |
) |
|
|
(256,310 |
) |
Contributions from noncontrolling interests |
|
|
— |
|
|
|
— |
|
|
|
1,654 |
|
|
|
— |
|
Dividends paid to noncontrolling interests |
|
|
(5 |
) |
|
|
— |
|
|
|
(5 |
) |
|
|
(4,841 |
) |
Sale of noncontrolling interests |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,901 |
|
Stock-based compensation - Employee taxes paid |
|
|
(52 |
) |
|
|
(132 |
) |
|
|
(1,426 |
) |
|
|
(1,949 |
) |
Payment of contingent consideration |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6,915 |
) |
Net cash (used) provided by financing
activities |
|
|
(5,174 |
) |
|
|
8,012 |
|
|
|
44,772 |
|
|
|
(42,785 |
) |
Effect of exchange rate changes on cash and cash equivalents,
including restricted cash |
|
|
1,116 |
|
|
|
(1,953 |
) |
|
|
(3,115 |
) |
|
|
(10,715 |
) |
Net increase (decrease) in cash and cash equivalents, including
restricted cash |
|
|
25,927 |
|
|
|
57 |
|
|
|
39,520 |
|
|
|
(2,034 |
) |
Cash and cash equivalents, including restricted cash, at
beginning of period |
|
|
98,687 |
|
|
|
85,037 |
|
|
|
85,094 |
|
|
|
87,128 |
|
Cash and cash equivalents, including restricted cash,
at end of period |
|
$ |
124,614 |
|
|
$ |
85,094 |
|
|
$ |
124,614 |
|
|
$ |
85,094 |
|
ENVIRI
CORPORATIONREVIEW OF OPERATIONS BY
SEGMENT (Unaudited) |
|
|
|
Three Months Ended |
|
|
December 31, 2023 |
|
December 31, 2022 |
(In thousands) |
|
Revenues |
|
OperatingIncome (Loss) |
|
Revenues |
|
Operating Income (Loss) |
Harsco Environmental |
|
$ |
292,245 |
|
$ |
24,750 |
|
|
$ |
256,872 |
|
$ |
(4,372 |
) |
Clean Earth |
|
|
236,571 |
|
|
15,972 |
|
|
|
211,430 |
|
|
13,865 |
|
Corporate |
|
|
— |
|
|
(12,803 |
) |
|
|
— |
|
|
(7,704 |
) |
Consolidated Totals |
|
$ |
528,816 |
|
$ |
27,919 |
|
|
$ |
468,302 |
|
$ |
1,789 |
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended |
|
|
December 31, 2023 |
|
December 31, 2022 |
(In thousands) |
|
Revenues |
|
OperatingIncome (Loss) |
|
Revenues |
|
Operating Income (Loss) |
Harsco Environmental |
|
$ |
1,140,904 |
|
$ |
77,635 |
|
|
$ |
1,061,239 |
|
$ |
59,559 |
|
Clean Earth |
|
|
928,321 |
|
|
76,974 |
|
|
|
827,826 |
|
|
(81,785 |
) |
Corporate |
|
|
— |
|
|
(43,595 |
) |
|
|
— |
|
|
(35,117 |
) |
Consolidated Totals |
|
$ |
2,069,225 |
|
$ |
111,014 |
|
|
$ |
1,889,065 |
|
$ |
(57,343 |
) |
ENVIRI
CORPORATIONRECONCILIATION 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 |
|
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Diluted earnings (loss) per share from continuing operations, as
reported |
|
$ |
(0.17 |
) |
|
$ |
(0.30 |
) |
|
$ |
(0.57 |
) |
|
$ |
(1.73 |
) |
|
Facility fees and debt-related
expense (income) (a) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.01 |
) |
|
Corporate strategic costs
(b) |
|
|
0.01 |
|
|
|
— |
|
|
|
0.03 |
|
|
|
— |
|
|
Corporate contingent
consideration adjustment (c) |
|
|
— |
|
|
|
— |
|
|
|
(0.01 |
) |
|
|
— |
|
|
Harsco Environmental segment
other intangible asset impairment charge (d) |
|
|
— |
|
|
|
0.19 |
|
|
|
— |
|
|
|
0.19 |
|
|
Harsco Environmental segment
severance costs (e) |
|
|
— |
|
|
|
0.05 |
|
|
|
0.01 |
|
|
|
0.05 |
|
|
Harsco Environmental net gain
on lease incentive (f) |
|
|
0.02 |
|
|
|
— |
|
|
|
(0.10 |
) |
|
|
— |
|
|
Harsco Environmental property,
plant and equipment impairment charge, net of noncontrolling
interest (g) |
|
|
— |
|
|
|
— |
|
|
|
0.10 |
|
|
|
— |
|
|
Harsco Environmental accounts
receivable provision (h) |
|
|
— |
|
|
|
— |
|
|
|
0.07 |
|
|
|
— |
|
|
Clean Earth segment goodwill
impairment charge (i) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1.32 |
|
|
Clean Earth segment severance
costs (j) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.03 |
|
|
Clean Earth segment contingent
consideration adjustments (k) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.01 |
) |
|
Taxes on above unusual items
(l) |
|
|
— |
|
|
|
(0.01 |
) |
|
|
0.07 |
|
|
|
(0.05 |
) |
|
Adjusted diluted
earnings (loss) per share from continuing operations, including
acquisition amortization expense |
|
|
(0.14 |
) |
|
|
(0.07 |
) |
|
|
(0.40 |
) |
|
|
(0.20 |
) |
(n) |
Acquisition amortization
expense, net of tax (m) |
|
|
0.07 |
|
|
|
0.08 |
|
|
|
0.28 |
|
|
|
0.31 |
|
|
Adjusted diluted
earnings (loss) per share from continuing operations |
|
$ |
(0.07 |
) |
|
$ |
0.01 |
|
|
$ |
(0.12 |
) |
|
$ |
0.10 |
|
|
(a) |
Costs incurred at Corporate to amend the Company's Senior Secured
Credit Facilities, partially offset by a gain on the repurchase of
$25.0 million of Senior Notes (Q4 2022 $0.1 million pre-tax
expense; twelve months 2022 $0.5 million pre-tax income). |
(b) |
Certain strategic costs incurred at Corporate associated with
supporting and executing the Company's long-term strategies
(Q4 2023 $0.5 million pre-tax expense; twelve months ended 2023
$2.8 million pre-tax expense). 2022 included the relocation of the
Company's headquarters, in addition to other certain strategic
costs incurred at Corporate (Q4 2022 $0.2 million pre-tax expense;
twelve months 2022 $0.4 million pre-tax expense). |
(c) |
Adjustment related to a previously recorded liability related to a
contingent consideration from the Company's acquisition of Clean
Earth (twelve months ended 2023 $0.8 million pre-tax
income). |
(d) |
Non-cash other intangible asset impairment charge in the Harsco
Environmental segment (Q4 2022 and twelve months 2022 $15.0 million
pre-tax expense). |
(e) |
Severance and related costs incurred in the Harsco Environmental
segment (twelve months ended 2023 $1.1 million pre-tax expense; Q4
and twelve months 2022 $4.2 million pre-tax expense). |
(f) |
Gain, net of exit costs, recognized for a lease modification that
resulted in a lease incentive for the Company for a site relocation
prior the end of the expected lease term (Q4 2023 $1.7 million
pre-tax expense; twelve months ended 2023 $8.1 million pre-tax
income). |
(g) |
Non-cash property, plant and equipment impairment charge related to
abandoned equipment at a Harsco Environmental site, net of
noncontrolling interest impact (twelve months ended 2023 net $7.9
million, which includes $14.1 million pre-tax expense, net of $6.2
million that represents the noncontrolling partner's share of the
impairment charge). |
(h) |
Accounts receivable provision related to a customer in the Middle
East (twelve months ended 2023 $5.3 million pre-tax expense). |
(i) |
Non-cash goodwill impairment charge in the Clean Earth segment
(twelve months 2022 $104.6 million pre-tax expense). |
(j) |
Severance and related costs incurred in the Clean Earth segment
(twelve months 2022 $2.6 million pre-tax expense). |
(k) |
Adjustment to a contingent consideration related to an acquisition
in the Clean Earth segment (twelve months 2022 $0.8 million pre-tax
income). |
(l) |
Unusual items are tax-effected at the global effective tax rate,
before discrete items, in effect at the time the unusual item is
recorded. |
(m) |
Pre-tax acquisition amortization expense was $7.1 million and $7.7
million in Q4 2023 and 2022, respectively, and after-tax was $5.5
million and $6.2 million in Q4 2023 and 2022, respectively. Pre-tax
acquisition amortization expense was $28.6 million and $31.1
million for the twelve months ended 2023 and 2022, respectively,
and after-tax was $22.0 million and $24.6 million for the twelve
months ended 2023 and 2022, respectively. |
(n) |
Does not total due to rounding. |
ENVIRI
CORPORATION RECONCILIATION OF PROJECTED ADJUSTED DILUTED EARNINGS
(LOSS) PER SHARE FROM CONTINUING OPERATIONS TO DILUTED EARNINGS PER
SHARE FROM CONTINUING OPERATIONS (a) (Unaudited) |
|
|
|
Projected |
|
|
Three Months
Ending |
|
Twelve
Months Ending |
|
|
March 31 |
|
December 31 |
|
|
2024 |
|
2024 |
|
|
Low |
|
High |
|
Low |
|
High |
Diluted earnings (loss) per share from continuing operations |
|
$ |
(0.20 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.52 |
) |
|
$ |
(0.28 |
) |
Estimated acquisition
amortization expense, net of tax |
|
|
0.07 |
|
|
|
0.07 |
|
|
|
0.28 |
|
|
|
0.28 |
|
Adjusted diluted
earnings (loss) per share from continuing operations |
|
$ |
(0.13 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.25 |
) |
(b) |
$ |
— |
|
(a) Excludes Harsco Rail Segment.(b) Does not total due to
rounding.
ENVIRI
CORPORATIONRECONCILIATION OF ADJUSTED EBITDA BY
SEGMENT TO OPERATING INCOME (LOSS) AS REPORTED BY SEGMENT
(Unaudited) |
|
(In
thousands) |
|
Harsco Environmental |
|
Clean Earth |
|
Corporate |
|
Consolidated Totals |
Three Months Ended December 31, 2023: |
|
|
|
|
|
|
Operating
income (loss), as reported |
|
$ |
24,750 |
|
|
$ |
15,972 |
|
|
$ |
(12,803 |
) |
|
$ |
27,919 |
|
Corporate strategic costs |
|
|
— |
|
|
|
— |
|
|
|
534 |
|
|
|
534 |
|
Harsco Environmental segment net gain on lease incentive |
|
|
1,729 |
|
|
|
— |
|
|
|
— |
|
|
|
1,729 |
|
Operating income (loss) excluding unusual items |
|
|
26,479 |
|
|
|
15,972 |
|
|
|
(12,269 |
) |
|
|
30,182 |
|
Depreciation |
|
|
28,865 |
|
|
|
6,724 |
|
|
|
474 |
|
|
|
36,063 |
|
Amortization |
|
|
1,009 |
|
|
|
6,112 |
|
|
|
— |
|
|
|
7,121 |
|
Adjusted EBITDA |
|
$ |
56,353 |
|
|
$ |
28,808 |
|
|
$ |
(11,795 |
) |
|
$ |
73,366 |
|
Revenues as reported |
|
$ |
292,245 |
|
|
$ |
236,571 |
|
|
|
|
$ |
528,816 |
|
Adjusted EBITDA margin (%) |
|
|
19.3 |
% |
|
|
12.2 |
% |
|
|
|
|
13.9 |
% |
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
2022: |
|
|
|
|
|
|
Operating income (loss), as reported |
|
$ |
(4,372 |
) |
|
$ |
13,865 |
|
|
$ |
(7,704 |
) |
|
$ |
1,789 |
|
Corporate strategic costs |
|
|
— |
|
|
|
— |
|
|
|
229 |
|
|
|
229 |
|
Harsco Environmental segment intangible asset impairment |
|
|
15,000 |
|
|
|
— |
|
|
|
— |
|
|
|
15,000 |
|
Harsco Environmental segment severance costs |
|
|
4,156 |
|
|
|
— |
|
|
|
— |
|
|
|
4,156 |
|
Clean Earth segment severance costs |
|
|
— |
|
|
|
37 |
|
|
|
— |
|
|
|
37 |
|
Operating income (loss) excluding unusual items |
|
|
14,784 |
|
|
|
13,902 |
|
|
|
(7,475 |
) |
|
|
21,211 |
|
Depreciation |
|
|
26,569 |
|
|
|
4,623 |
|
|
|
561 |
|
|
|
31,753 |
|
Amortization |
|
|
1,648 |
|
|
|
6,022 |
|
|
|
— |
|
|
|
7,670 |
|
Adjusted EBITDA |
|
$ |
43,001 |
|
|
$ |
24,547 |
|
|
$ |
(6,914 |
) |
|
$ |
60,634 |
|
Revenues as reported |
|
$ |
256,872 |
|
|
$ |
211,430 |
|
|
|
|
$ |
468,302 |
|
Adjusted EBITDA margin (%) |
|
|
16.7 |
% |
|
|
11.6 |
% |
|
|
|
|
12.9 |
% |
ENVIRI
CORPORATIONRECONCILIATION OF ADJUSTED EBITDA
BY SEGMENT TO OPERATING INCOME (LOSS) AS REPORTED BY
SEGMENT (Unaudited) |
(In
thousands) |
|
Harsco Environmental |
|
Clean
Earth |
|
Corporate |
|
Consolidated
Totals |
Twelve Months
Ended December 31, 2023: |
|
|
|
|
|
|
|
|
Operating
income (loss), as reported |
|
$ |
77,635 |
|
|
$ |
76,974 |
|
|
$ |
(43,595 |
) |
|
$ |
111,014 |
|
Corporate strategic costs |
|
|
— |
|
|
|
— |
|
|
|
2,787 |
|
|
|
2,787 |
|
Corporate contingent consideration adjustment |
|
|
— |
|
|
|
— |
|
|
|
(828 |
) |
|
|
(828 |
) |
Harsco Environmental segment severance costs |
|
|
1,146 |
|
|
|
— |
|
|
|
— |
|
|
|
1,146 |
|
Harsco Environmental segment net gain on lease incentive |
|
|
(8,053 |
) |
|
|
— |
|
|
|
— |
|
|
|
(8,053 |
) |
Harsco Environmental property, plant and equipment impairment
charge |
|
|
14,099 |
|
|
|
— |
|
|
|
— |
|
|
|
14,099 |
|
Harsco Environmental accounts receivable provision |
|
|
5,284 |
|
|
|
— |
|
|
|
— |
|
|
|
5,284 |
|
Operating income (loss) excluding unusual items |
|
|
90,111 |
|
|
|
76,974 |
|
|
|
(41,636 |
) |
|
|
125,449 |
|
Depreciation |
|
|
113,571 |
|
|
|
23,252 |
|
|
|
2,133 |
|
|
|
138,956 |
|
Amortization |
|
|
4,030 |
|
|
|
24,583 |
|
|
|
— |
|
|
|
28,613 |
|
Adjusted EBITDA |
|
|
207,712 |
|
|
|
124,809 |
|
|
|
(39,503 |
) |
|
|
293,018 |
|
Revenues as reported |
|
$ |
1,140,904 |
|
|
$ |
928,321 |
|
|
|
|
$ |
2,069,225 |
|
Adjusted EBITDA margin (%) |
|
|
18.2 |
% |
|
|
13.4 |
% |
|
|
|
|
14.2 |
% |
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31,
2022: |
|
|
|
|
|
|
Operating income (loss), as reported |
|
$ |
59,559 |
|
|
$ |
(81,785 |
) |
|
$ |
(35,117 |
) |
|
$ |
(57,343 |
) |
Corporate strategic costs |
|
|
— |
|
|
|
— |
|
|
|
357 |
|
|
|
357 |
|
Clean Earth segment goodwill impairment charge |
|
|
— |
|
|
|
104,580 |
|
|
|
— |
|
|
|
104,580 |
|
Clean Earth segment severance costs |
|
|
— |
|
|
|
2,577 |
|
|
|
— |
|
|
|
2,577 |
|
Clean Earth segment contingent consideration adjustment |
|
|
— |
|
|
|
(827 |
) |
|
|
— |
|
|
|
(827 |
) |
Harsco Environmental segment intangible asset impairment |
|
|
15,000 |
|
|
|
— |
|
|
|
— |
|
|
|
15,000 |
|
Harsco Environmental segment severance costs |
|
|
4,156 |
|
|
|
— |
|
|
|
— |
|
|
|
4,156 |
|
Operating income (loss) excluding unusual items |
|
|
78,715 |
|
|
|
24,545 |
|
|
|
(34,760 |
) |
|
|
68,500 |
|
Depreciation |
|
|
108,880 |
|
|
|
18,836 |
|
|
|
1,996 |
|
|
|
129,712 |
|
Amortization |
|
|
6,809 |
|
|
|
24,299 |
|
|
|
— |
|
|
|
31,108 |
|
Adjusted EBITDA |
|
|
194,404 |
|
|
|
67,680 |
|
|
|
(32,764 |
) |
|
|
229,320 |
|
Revenues as reported |
|
$ |
1,061,239 |
|
|
$ |
827,826 |
|
|
|
|
$ |
1,889,065 |
|
Adjusted EBITDA margin (%) |
|
|
18.3 |
% |
|
|
8.2 |
% |
|
|
|
|
12.1 |
% |
ENVIRI
CORPORATIONRECONCILIATION OF CONSOLIDATED ADJUSTED
EBITDA TO CONSOLIDATED INCOME (LOSS) FROM CONTINUING OPERATIONS AS
REPORTED (Unaudited) |
|
|
|
|
|
|
|
Three Months Ended December 31 |
(In thousands) |
|
2023 |
|
2022 |
Consolidated income (loss) from continuing operations |
|
$ |
(12,480 |
) |
|
$ |
(23,165 |
) |
|
|
|
|
|
Add back
(deduct): |
|
|
|
|
Equity in (income) loss of unconsolidated entities, net |
|
|
168 |
|
|
|
(195 |
) |
Income tax (benefit) expense |
|
|
6,834 |
|
|
|
2,899 |
|
Defined benefit pension expense (income) |
|
|
5,422 |
|
|
|
(2,163 |
) |
Facility fees and debt-related expense (income) |
|
|
2,863 |
|
|
|
2,062 |
|
Interest expense |
|
|
27,081 |
|
|
|
23,621 |
|
Interest income |
|
|
(1,969 |
) |
|
|
(1,270 |
) |
Depreciation |
|
|
36,063 |
|
|
|
31,753 |
|
Amortization |
|
|
7,121 |
|
|
|
7,670 |
|
|
|
|
|
|
Unusual items: |
|
|
|
|
Corporate strategic costs |
|
|
534 |
|
|
|
229 |
|
Harsco Environmental segment intangible asset impairment
charge |
|
|
— |
|
|
|
15,000 |
|
Harsco Environmental segment severance costs |
|
|
— |
|
|
|
4,156 |
|
Harsco Environmental segment net gain on lease incentive |
|
|
1,729 |
|
|
|
— |
|
Clean Earth segment severance costs |
|
|
— |
|
|
|
37 |
|
|
|
|
|
|
Consolidated Adjusted
EBITDA |
|
$ |
73,366 |
|
|
$ |
60,634 |
|
ENVIRI
CORPORATIONRECONCILIATION OF ADJUSTED EBITDA TO
CONSOLIDATED INCOME (LOSS) FROM CONTINUING OPERATIONS AS
REPORTED (Unaudited) |
|
|
|
Twelve Months EndedDecember
31 |
(In thousands) |
|
2023 |
|
2022 |
Consolidated income (loss) from continuing operations |
|
$ |
(47,496 |
) |
|
$ |
(133,517 |
) |
|
|
|
|
|
Add back
(deduct): |
|
|
|
|
Equity in (income) loss of unconsolidated entities, net |
|
|
761 |
|
|
|
178 |
|
Income tax (benefit) expense |
|
|
28,185 |
|
|
|
10,381 |
|
Defined benefit pension expense (income) |
|
|
21,600 |
|
|
|
(8,938 |
) |
Facility fee and debt-related expense |
|
|
10,762 |
|
|
|
2,956 |
|
Interest expense |
|
|
103,872 |
|
|
|
75,156 |
|
Interest income |
|
|
(6,670 |
) |
|
|
(3,559 |
) |
Depreciation |
|
|
138,956 |
|
|
|
129,712 |
|
Amortization |
|
|
28,613 |
|
|
|
31,108 |
|
|
|
|
|
|
Unusual items: |
|
|
|
|
Corporate strategic costs |
|
|
2,787 |
|
|
|
357 |
|
Corporate contingent consideration adjustment |
|
|
(828 |
) |
|
|
— |
|
Harsco Environmental segment severance costs |
|
|
1,146 |
|
|
|
4,156 |
|
Harsco Environmental segment other intangible asset impairment
charge |
|
|
— |
|
|
|
15,000 |
|
Harsco Environmental segment net gain on lease incentive |
|
|
(8,053 |
) |
|
|
— |
|
Harsco Environmental property, plant and equipment impairment
charge |
|
|
14,099 |
|
|
|
— |
|
Harsco Environmental accounts receivable provision |
|
|
5,284 |
|
|
|
— |
|
Clean Earth segment goodwill impairment charge |
|
|
— |
|
|
|
104,580 |
|
Clean Earth segment severance costs |
|
|
— |
|
|
|
2,577 |
|
Clean Earth segment contingent consideration adjustments |
|
|
— |
|
|
|
(827 |
) |
Adjusted
EBITDA |
|
$ |
293,018 |
|
|
$ |
229,320 |
|
ENVIRI
CORPORATION RECONCILIATION OF PROJECTED CONSOLIDATED ADJUSTED
EBITDA TO PROJECTED CONSOLIDATED INCOME FROM CONTINUING OPERATIONS
(a)(Unaudited) |
|
|
|
Projected |
|
Projected |
|
|
|
Three Months Ending |
|
Twelve Months Ending |
|
|
|
March 31 |
|
December 31 |
|
|
|
2024 |
|
2024 |
|
(In millions) |
|
Low |
|
High |
|
Low |
|
High |
|
Consolidated loss from continuing operations |
|
$ |
(15 |
) |
|
$ |
(9 |
) |
|
$ |
(38 |
) |
|
$ |
(18 |
) |
|
|
|
|
|
|
|
|
|
|
|
Add back
(deduct): |
|
|
|
|
|
|
|
|
|
Income tax (income) expense |
|
|
1 |
|
|
|
3 |
|
|
|
23 |
|
|
|
29 |
|
|
Facility fees and debt-related (income) expense |
|
|
3 |
|
|
|
3 |
|
|
|
11 |
|
|
|
10 |
|
|
Net interest |
|
|
26 |
|
|
|
25 |
|
|
|
108 |
|
|
|
103 |
|
|
Defined benefit pension (income) expense |
|
|
5 |
|
|
|
4 |
|
|
|
17 |
|
|
|
17 |
|
|
Depreciation and amortization |
|
|
44 |
|
|
|
44 |
|
|
|
178 |
|
|
|
178 |
|
|
Consolidated Adjusted EBITDA |
|
$ |
63 |
|
(b) |
$ |
70 |
|
|
$ |
300 |
|
(b) |
$ |
320 |
|
(b) |
(a) Excludes former Harsco Rail Segment(b) Does not total due to
rounding.
ENVIRI
CORPORATIONRECONCILIATION OF FREE CASH FLOW TO NET
CASH PROVIDED BY OPERATING ACTIVITIES (Unaudited) |
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
December 31 |
|
December 31 |
(In thousands) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Net cash provided (used) by operating activities (a) |
|
$ |
68,276 |
|
|
$ |
19,366 |
|
|
$ |
114,448 |
|
|
$ |
150,527 |
|
Less capital expenditures |
|
|
(45,395 |
) |
|
|
(35,515 |
) |
|
|
(139,025 |
) |
|
|
(137,160 |
) |
Less expenditures for intangible assets |
|
|
(25 |
) |
|
|
(37 |
) |
|
|
(503 |
) |
|
|
(184 |
) |
Plus capital expenditures for strategic ventures (b) |
|
|
562 |
|
|
|
361 |
|
|
|
3,020 |
|
|
|
1,789 |
|
Plus total proceeds from sales of assets (c) |
|
|
4,911 |
|
|
|
2,470 |
|
|
|
6,991 |
|
|
|
10,759 |
|
Plus transaction-related expenditures (d) |
|
|
1,625 |
|
|
|
— |
|
|
|
2,670 |
|
|
|
1,854 |
|
Harsco Rail free cash flow deficit (benefit) |
|
|
(4,866 |
) |
|
|
16,783 |
|
|
|
36,271 |
|
|
|
47,610 |
|
Free cash flow |
|
$ |
25,088 |
|
|
$ |
3,428 |
|
|
$ |
23,872 |
|
|
$ |
75,195 |
|
(a) |
The Company initiated a revolving trade receivables securitization
facility in 2022 and, during the years ended December 31, 2022 and
2023, the Company received net proceeds of $145.0 million and $5.0
million, respectively. The proceeds are included in net cash
provided by operating activities for these years. |
(b) |
Capital expenditures for strategic ventures represent the partner’s
share of capital expenditures in certain ventures consolidated in
the Company’s condensed consolidated financial statements. |
(c) |
Asset sales are a normal part of the business model, primarily for
the Harsco Environmental segment. |
(d) |
Expenditures directly related to the Company's divestiture
transactions and other strategic costs incurred at Corporate. |
ENVIRI
CORPORATION RECONCILIATION OF PROJECTED FREE CASH FLOW TO PROJECTED
NET CASH PROVIDED BY OPERATING ACTIVITIES (a)
(Unaudited) |
|
|
|
Projected Twelve Months
Ending December 31 |
|
|
2024 |
(In millions) |
|
Low |
|
High |
Net cash provided by operating activities |
|
$ |
146 |
|
|
$ |
176 |
|
Less net capital / intangible
asset expenditures |
|
|
(130 |
) |
|
|
(140 |
) |
Plus capital expenditures for
strategic ventures |
|
|
4 |
|
|
|
4 |
|
Free cash flow |
|
$ |
20 |
|
|
$ |
40 |
|
(a) Excludes former Harsco Rail Segment
Investor Contact David
Martin+1.267.946.1407dmartin@enviri.com |
Media ContactJay Cooney+1.267.857.8017jcooney@enviri.com |
Grafico Azioni Enviri (NYSE:NVRI)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Enviri (NYSE:NVRI)
Storico
Da Lug 2023 a Lug 2024