Enviri Corporation · NYSE:NVRI
Enviri — Harsco — Q4 2021 Earnings Presentation
29 slides from Enviri's earnings presentation, Feb 24, 2022
Slide 1: Q4 2021 Quarterly Results and Outlook
Q4 2021 Quarterly Results and Outlook Conference Call February 24, 2022
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 – Q4 in-line with guidance; lower spending offset volume-mix impacts and persistent cost inflation – 2021 successful year for Harsco; Continuing Operations met expectations set at the beginning of year; Announced intent to sell Rail – Significant progress made on ESG initiatives – Cl
Slide 4: 2021 ESG Highlights
2021 ESG HIGHLIGHTS E 38 93% Named to the 2022 Carbon Clean 200 list, New environmental of material processed recognizing Harsco’s solutions launched in by Clean Earth recycled recycling and carbon 2021 or repurposed in 2021 emissions reduction services S 0.97 Launched Harsco’s global Diversity, Nam
Slide 5: Q4 2021 Financial Summary
Q4 2021 FINANCIAL SUMMARY KEY PERFORMANCE INDICATORS $ in millions except EPS; Continuing Q4 2021 Q4 2020 Change – Revenues grew 7%: HE +9%; CE +5% Operations Revenues, as reported 462 431 7% – Q4 2021 Adjusted EBITDA at midpoint of guidance ($55-62M) and Operating Income - GAAP 16 9 75% comparable
Slide 6: Q4 2021 Environmental
Q4 2021 ENVIRONMENTAL 1 SUMMARY RESULTS ADJUSTED EBITDA BRIDGE $ in millions $ in millions Q4 Q4 60 % 2021 2020 52.2 0.6 Revenues, as reported 268 246 9% 49.0 50 (2.1) (1.0) (0.7) Operating Income – 20 23 (13)% GAAP 40 Q4 2020 New-Exited LST/Services Eco- SG&A, FX & Q4 2021 Sites (net) Products Othe
Slide 7: Q4 2021 Clean Earth
Q4 2021 CLEAN EARTH 1 SUMMARY RESULTS ADJUSTED EBITDA BRIDGE $ in millions $ in millions 30 Q4 Q4 % 2021 2020 0.4 20 15.9 0.6 16.4 Revenues, as reported 194 185 5% (0.5) 10 Operating Income – 0 5 3 64% GAAP Q4 2020 Hazardous Soil-Dredge SG&A / Q4 2021 Waste Materials Other 1 Adjusted EBITDA 16.4 15.
Slide 8: 2021 Financial Summary
2021 FINANCIAL SUMMARY KEY PERFORMANCE INDICATORS $ in millions except EPS; Continuing – Revenues increase reflects improved Operations 2021 2020 Change demand and impact of ESOL acquisition (Q2 2020) Revenues, as reported 1,848 1,534 20% – Adjusted EBITDA margins stable YoY, as Operating Income - G
Slide 9: Rail - Discontinued Operations
RAIL - DISCONTINUED OPERATIONS • Business is no longer aligned with Harsco's strategic direction • Divestiture process on track; expect to complete a transaction in 2022 • 2021 GAAP Operating Loss of $19 million; Adjusted EBITDA totaled $21 million • Q4 included 2 unusual items: – $2 million for cos
Slide 10: 2022 Segment Outlook
2022 SEGMENT OUTLOOK Excluding unusual items 2022 VERSUS 2021 REVENUES ▲ Low single-digit YoY growth, excluding FX translation impacts 1 ADJUSTED EBITDA ▲ Margins stable YoY + Services and ecoproduct demand growth, new contracts / sites TM - DRIVERS Exited contracts / sites, FX translation REVENUES
Slide 11: 2022 Outlook - Consolidated
2022 OUTLOOK - CONSOLIDATED3 2022 Outlook 2021 Actuals GAAP OPERATING INCOME $85 - 105M $88M ADJUSTED EBITDA 1 $255 - 275M $252M GAAP DILUTED EARNINGS PER SHARE $0.15- $0.32 $0.28 ADJUSTED DILUTED EARNINGS PER SHARE 1 $0.50- $0.66 $0.69 FREE CASH FLOW 2 $30M - 50M $(2)M (1) Excludes unusual items. A
Slide 12: Q1 2022 Outlook
Q1 2022 OUTLOOK2 YEAR-OVER-YEAR CONSIDERATIONS INCLUDE: 1 Adjusted EBITDA is expected to be between $ $ 47M- 52M Less favorable volume mix, contract exits, and FX translation 1 Adjusted diluted earnings per share is expected to be between $ $ 0.06- 0.07 Lower volumes from retail and industrial marke
Slide 13: Harsco
HARSCO © 2022 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 © 2022 Harsco Corporation. All Rights Reserved. This document and the information set forth herein are the property of Harsco Corporation. 14
Slide 15: Non-GAAP Measures
NON-GAAP MEASURES Measurements 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-
Slide 16: 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 2021 2020 202
Slide 17: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES (a) Costs at Corporate associated with amending the Company's existing Senior Secured Credit Facilities to establish a New Term Loan the proceeds of which were used to repay in full the outstanding Term Loan A and Term Loan B, to extend the maturity date of the Re
Slide 18: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF PROJECTED ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE FROM CONTINUING OPERATIONS TO DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS (a) (Unaudited) Projected Projected Three Months Ending Twelve Months Ending March 31 Dece
Slide 19: 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 Consolidated (In thousands) Environmental Earth Corporate Totals Three Months Ended December 31, 2021: Operating incom
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 Consolidated (In thousands) Environmental Earth Corporate Totals Three Months Ended December 31, 2020: Operating incom
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 Consolidated (In thousands) Environmental Clean Earth (a) Corporate Totals Twelve Months Ended December 31, 2021: Operating
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 Consolidated (In thousands) Environmental Clean Earth (a) Corporate Totals Twelve Months Ended December 31, 2020: Operating
Slide 23: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF HARSCO RAIL BUSINESS ADJUSTED EBITDA TO HARSCO RAIL BUSINESS OPERATING INCOME (Unaudited) Harsco Rail Twelve Months Ending December 31 2021 (In millions) Operating loss from discontinued operations $ (19) Severance and related
Slide 24: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF CONSOLIDATED ADJUSTED EBITDA TO CONSOLIDATED INCOME (LOSS) FROM CONTINUING OPERATIONS AS REPORTED (Unaudited) Three Months Ended December 31 (In thousands) 2021 2020 Consolidated income (loss) from continuing operations $ 10,71
Slide 25: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF CONSOLIDATED ADJUSTED EBITDA TO CONSOLIDATED INCOME (LOSS) FROM CONTINUING OPERATIONS AS REPORTED (Unaudited) Twelve Months Ended December 31 (In thousands) 2021 2020 Consolidated income (loss) from continuing operations $ 28,1
Slide 26: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES HARSCO 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 2022 2022 (In millions) Low Hi
Slide 27: 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 Twelve Months Ended December 31 December 31 (In thousands) 2021 2020 2021 2020 Net cash provided by operating activities $ 25,447 $ 11,5
Slide 28: 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) (a) Projected Twelve Months Ending December 31 2022 (In millions) Low High Net cash provided by operating activities $ 155 $ 180 Less n
Slide 29: Harsco
HARSCO © 2022 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.