Enviri Corporation · NYSE:NVRI
Enviri — Harsco — Q1 2018 Earnings Presentation
20 slides from Enviri's earnings presentation, May 2, 2018
Slide 1: Q1 2018 Results & Outlook
Q1 2018 Results & Outlook Conference Call│ May 2, 2018 ©2018 Harsco Corporation. All Rights Reserved
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 ▪ Q1 operating income and EPS above guidance ▪ 2018 Outlook raised; reflects business confidence and improved market conditions in Metals & Minerals and Industrial ▪ Business updates: ▪ M&M – operations consistently performing well; and focused on executing against broad growth pipel
Slide 4: Q1 2018 Financial Summary – Key Performance Indicators
Q1 2018 Financial Summary – Key Performance Indicators ($ - millions, except EPS) Change vs. 2017 ▪ Q1 operating income above guidance range of $30-35 First $ % or bps million Quarter ▪ Results exceeded guidance due Revenues 408 35 10% to Metals & Minerals and Industrial performance, as well as lowe
Slide 5: Q1 2018 – Metals & Minerals
Q1 2018 – Metals & Minerals Summary Results LST Continuing Sites (million tons) ($ in millions) Q1 2018 Q1 2017 % change Revenues, as reported 265 247 7% Operating income - GAAP 28 26 8% Operating margin - GAAP 10.5% 10.4% Free cash flow (YTD) (7) 10 nmf ROIC (TTM) 12.7% 10.8% 190bps Operating Incom
Slide 6: Q1 2018 - Industrial
Q1 2018 - Industrial Summary Results Revenue Mix ($ in millions) Q1 2018 Q1 2017 % change Revenues, as reported 84 66 27% Operating income - GAAP 12 3 nmf Operating margin - GAAP 14.9% 4.4% Free cash flow (YTD) 4 2 79% ROIC (TTM) 36.4% 16.3% nmf Operating Income Bridge Business Highlights ▪ Revenue
Slide 7: Q1 2018 - Rail
Q1 2018 - Rail Summary Results Revenue Mix ($ in millions) Q1 2018 Q1 2017 % change Revenues, as reported 60 60 —% Operating income - GAAP 2 6 (69)% Operating margin - GAAP 3.3% 10.4% Free cash flow (YTD) (5) (14) nmf ROIC (TTM) 27.9% 30.5% (260)bps Operating Income Bridge Business Highlights ▪ Reve
Slide 8: 2018 Summary Outlook
2018 Summary Outlook 2018 Outlook(2) 2018 Prior 2017 Actual(3) GAAP Operating $145 million Income $165 to $180 million $150 to $170 million Adjusted Operating $165 to $180 million $150 to $170 million $150 million Income(1) GAAP Diluted Earnings/(Loss) Per $1.11 to $1.24 $0.97 to $1.14 $0.09 Share A
Slide 9: Q2 2018 Outlook
Q2 2018 Outlook* ▪ Adjusted operating income is expected to be between $45 to $50 million versus $43 million in Q2 2017 ▪ Adjusted diluted earnings per share of $0.30 to $0.35 ▪ Year-over-year considerations include: ▪ M&M: Higher LST and commodities, new contracts and operating benefits, partially
Slide 10: Q&A
Q&A 10 ©2018 Harsco Corporation. All Rights Reserved
Slide 11: Appendix
Appendix ©2018 Harsco Corporation. All Rights Reserved
Slide 12: 2018 Business Outlook
2018 Business Outlook Excluding unusual items 2018 versus 2017* 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, Drivers commodities prices, Applied Products, FX - Exited s
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) Twelve Months Ended December 31 2017 Diluted earnings per s
Slide 14: 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 AFTER RECLASSIFICATION (Unaudited) (a) Harsco Metals & Harsco Harsco Consolidated (In thousands) Minerals Ind
Slide 15: 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 AFTER RECLASSIFICATION (Unaudited) (a) Harsco Metals & Harsco Harsco Consolidated (In thousands) Minerals Ind
Slide 16: 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 March 31 (In thousands) 2018 2017 Net cash used by operating activities $ (8,243) $ (6,124) Less capital expenditures (26,897) (16,989)
Slide 17: 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 18: 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 19: 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 (a) Return on invested capital excluding unusual items is Period Ended Ma
Slide 20: 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