Harsco Corporation (NYSE: HSC) today reported second quarter
2022 results. On a U.S. GAAP ("GAAP") basis, second quarter of 2022
diluted loss per share from continuing operations was $1.34,
including a Clean Earth non-cash goodwill impairment charge and
other unusual items. Adjusted diluted earnings per share from
continuing operations in the second quarter of 2022 was $0.01.
These figures compare with second quarter of 2021 GAAP diluted
earnings per share from continuing operations of $0.11 and adjusted
diluted earnings per share from continuing operations of $0.20.
The GAAP operating loss from continuing operations for the
second quarter of 2022 was $97 million and Adjusted EBITDA was $49
million in the quarter.
“Our team is taking aggressive action to mitigate the
extraordinary inflationary which impacted our results in the
quarter,” said Chairman and CEO Nick Grasberger. “In Clean Earth,
the segment most impacted by external inflationary pressures, we
are implementing incremental pricing and cost reduction initiatives
which we believe will offset these challenges and better position
Clean Earth to realize its profit and margin potential in the
future. We also remain focused on reducing our leverage and
creating value from our unique asset base. While the steps we are
taking will take time to deliver results, we remain encouraged by
the healthy underlying demand across most of our end markets and
are confident in our ability to deliver profitable growth and value
creation for shareholders.”
Harsco Corporation—Selected Second Quarter
Results
($ in millions, except per share amounts) |
|
Q2 2022 |
|
Q2 2021 |
Revenues |
|
$ |
481 |
|
|
$ |
469 |
|
Operating
income from continuing operations - GAAP |
|
$ |
(97 |
) |
|
$ |
26 |
|
Diluted
EPS from continuing operations - GAAP |
|
$ |
(1.34 |
) |
|
$ |
0.11 |
|
Adjusted
EBITDA |
|
$ |
49 |
|
|
$ |
67 |
|
Adjusted
EBITDA margin |
|
|
10.2 |
% |
|
|
14.3 |
% |
Adjusted diluted EPS |
|
$ |
0.01 |
|
|
$ |
0.20 |
|
Note: Adjusted earnings per share and adjusted
EBITDA details presented throughout this release are adjusted for
unusual items; in addition, adjusted earnings per share details are
adjusted for acquisition-related amortization expense.
Consolidated Second Quarter Operating
Results
Consolidated revenues from continuing operations were $481
million, an increase of 3 percent compared with the prior-year
quarter. Environmental and Clean Earth each realized an increase in
revenues compared to the second quarter of 2021. Foreign currency
translation negatively impacted second quarter 2022 revenues by
approximately $20 million (4 percent), compared with the prior-year
period.
The Company's GAAP operating loss from continuing operations was
$97 million for the second quarter of 2022 including a non-cash
goodwill impairment charge of $105 million, compared with GAAP
operating income of $26 million in the same quarter of 2021.
Meanwhile, adjusted EBITDA totaled $49 million in the second
quarter of 2022 versus $67 million in the second quarter of the
prior year. Both Environmental and Clean Earth experienced lower
adjusted EBITDA relative to the prior year including the impacts of
foreign exchange translation in Environmental and inflationary
pressures on operating costs.
Second Quarter Business
ReviewEnvironmental
($ in millions) |
|
Q2 2022 |
|
Q2 2021 |
Revenues |
|
$ |
278 |
|
|
$ |
273 |
|
Operating
income - GAAP |
|
$ |
24 |
|
|
$ |
30 |
|
Adjusted
EBITDA |
|
$ |
53 |
|
|
$ |
58 |
|
Adjusted EBITDA margin |
|
|
19.0 |
% |
|
|
21.2 |
% |
Environmental revenues totaled $278 million in the second
quarter of 2022, an increase of 2 percent compared with the
prior-year quarter. This increase is attributable to higher demand
for mill services and ecoproductsTM, partially offset by FX
translation impacts. The segment's GAAP operating income and
adjusted EBITDA totaled $24 million and $53 million, respectively,
in the second quarter of 2022. These figures compare with GAAP
operating income of $30 million and adjusted EBITDA of $58 million
in the prior-year period. The year-on-year change in adjusted
earnings reflects the above-mentioned FX impacts as well as
operating cost inflation and fewer asset sales relative to the
prior-year quarter.
Clean Earth
($ in millions) |
|
Q2 2022 |
|
Q2 2021 |
Revenues |
|
$ |
203 |
|
|
$ |
196 |
|
Operating income (loss) - GAAP |
|
$ |
(112 |
) |
|
$ |
7 |
|
Adjusted EBITDA |
|
$ |
5 |
|
|
$ |
18 |
|
Adjusted EBITDA margin |
|
|
2.3 |
% |
|
|
9.4 |
% |
Clean Earth revenues totaled $203 million in the second quarter
of 2022, a 4 percent increase over the prior-year quarter as a
result of higher pricing for environmental services and volume
growth from industrial customers. The segment's GAAP operating loss
was $112 million and adjusted EBITDA was $5 million in the second
quarter of 2022. These figures compare with $7 million of operating
income and $18 million of adjusted EBITDA in the prior-year period.
The change in adjusted earnings is mainly attributable to
significant cost inflation above price (including transportation,
containers and end-disposal costs), which is being addressed in the
third quarter through pricing initiatives and cost reductions.
Goodwill Impairment Charge - Clean EarthHarsco
recorded a non-cash goodwill impairment for Clean Earth in the
second quarter. This $105 million charge reflects the impacts of a
higher discount rate and lower near-term earnings expectations for
Clean Earth as a result of extraordinary inflation. In response to
these pressures, the Company recently launched a Profit Improvement
Plan in Clean Earth targeting benefits of more than $30 million
through commercial pricing initiatives and cost reductions. These
improvements are expected to strengthen margins in the coming
quarters, and the Company remains committed to a Clean Earth
long-term EBITDA margin target of 15 percent.
Cash FlowNet cash provided by operating
activities was $152 million in the second quarter of 2022, compared
with net cash provided by operating activities of $37 million in
the prior-year period. Free cash flow (excluding Rail) was $132
million in the second quarter of 2022, compared with $20 million in
the prior-year period. The change in free cash flow compared with
the prior-year quarter is principally related to the Company's
accounts receivable securitization transaction (approximately $120
million), which was completed in June 2022.
2022 OutlookThe Company has updated its 2022
guidance to reflect heightened inflation challenges as well as the
effects of foreign exchange translation. Actions are underway to
mitigate these impacts through commercial efforts and cost
reductions, however these actions are not expected to fully offset
these pressures until 2023. Summary Outlook highlights are as
follows:
2022 Full Year Outlook(Continuing
Operations) |
Current |
May Outlook |
GAAP Operating Income/(Loss) |
$(53) - $(63) million |
$81 - $96 million |
Adjusted EBITDA |
$210 - $220 million |
$250 - $265 million |
GAAP Diluted Earnings/(Loss) Per Share |
$(1.58) - $(1.72) |
$0.02 - $0.10 |
Adjusted Diluted Earnings/(Loss) Per Share |
$0.00 - $(0.13) |
$0.35 - $0.44 |
Free Cash Flow |
$115 - $125 million |
$25 - $40 million |
Net Interest Expense |
$68 - $70 million |
unchanged |
Pension Income (Non-Operating) |
$9 million |
$10 million |
Net Capital Expenditures |
$125 - $130 million |
unchanged |
|
|
|
Q3 2022 Outlook(Continuing
Operations) |
GAAP Operating Income |
$12 - $17 million |
|
Adjusted EBITDA |
$54 - $59 million |
|
GAAP Diluted Earnings/(Loss) Per Share |
$(0.10) - $(0.16) |
|
Adjusted Diluted Earnings/(Loss) Per Share |
$(0.02) - $(0.08) |
|
Rail / Discontinued OperationsThe sales process
for Rail is ongoing, and the Company remains in discussions with
select interested parties. Rail is a non-core business with unique
asset base and a positive long-term outlook, and the Company
remains committed to selling Rail on a disciplined basis, thereby
creating value for shareholders. Further transaction updates will
be provided when appropriate.
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.harsco.com. The live call also can be accessed by dialing (833)
634-5019, or (412) 902-4237 for international callers. Please ask
to join the Harsco 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" 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) changes in the
worldwide business environment in which the Company operates,
including changes in general economic conditions or changes due to
COVID-19 and governmental and market reactions to COVID-19; (2)
changes in currency exchange rates, interest rates, commodity and
fuel costs and capital costs; (3) 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; (4)
changes in governmental laws and regulations, including
environmental, occupational health and safety, tax and import
tariff standards and amounts; (5) market and competitive changes,
including pricing pressures, market demand and acceptance for new
products, services and technologies; (6) 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; (7) failure to effectively prevent, detect or
recover from breaches in the Company's cybersecurity
infrastructure; (8) unforeseen business disruptions in one or more
of the many countries in which the Company operates due to
political instability, civil disobedience, armed hostilities,
public health issues or other calamities; (9) disruptions
associated with labor disputes and increased operating costs
associated with union organization; (10) the seasonal nature of the
Company's business; (11) the Company's ability to successfully
enter into new contracts and complete new acquisitions or strategic
ventures in the time-frame contemplated, or at all; (12) the
Company's ability to negotiate, complete, and integrate strategic
transactions; (13) failure to complete a divestiture of the Rail
division, as announced on November 2, 2021 on satisfactory terms,
or at all; (14) potential severe volatility in the capital or
commodity markets; (15) failure to retain key management and
employees; (16) the outcome of any disputes with customers,
contractors and subcontractors; (17) the financial condition of the
Company's customers, including the ability of customers (especially
those that may be highly leveraged, have inadequate liquidity or
whose business is significantly impacted by COVID-19) to maintain
their credit availability; (18) implementation of environmental
remediation matters; (19) risk and uncertainty associated with
intangible assets; (20) the risk that the Company may be unable to
implement fully and successfully the expected incremental actions
at Clean Earth due to market conditions or otherwise and may fail
to deliver the expected resulting benefits; and (21) 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 II, Item 1A “Risk Factors,” of the
Company’s Quarterly Report on Form 10-Q for the period ended March
31, 2022, and Part I, Item 1A, "Risk Factors," of the Company's
Annual Report on Form 10-K for the year ended December 31, 2021.
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.
Adjusted diluted earnings per share: Adjusted
diluted earnings per share 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 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 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
transaction-related 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 Harsco
Harsco Corporation is a global market leader providing
environmental solutions for industrial and specialty waste streams.
Based in Camp Hill, PA, the 12,000-employee company operates in
more than 30 countries. Harsco’s common stock is a component
of the S&P SmallCap 600 Index and the Russell 2000 Index.
Additional information can be found at www.harsco.com.
Investor Contact |
Media Contact |
David
Martin |
Jay Cooney |
717.612.5628 |
717.730.3683 |
damartin@harsco.com |
jcooney@harsco.com |
HARSCO
CORPORATIONCONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited) |
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30 |
|
June 30 |
(In thousands, except per share amounts) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenues from continuing operations: |
|
|
|
|
|
|
|
|
Service revenues |
|
$ |
439,618 |
|
|
$ |
429,651 |
|
|
$ |
858,053 |
|
|
$ |
843,990 |
|
Product revenues |
|
|
41,434 |
|
|
|
39,023 |
|
|
|
75,796 |
|
|
|
71,949 |
|
Total revenues |
|
|
481,052 |
|
|
|
468,674 |
|
|
|
933,849 |
|
|
|
915,939 |
|
Costs and expenses
from continuing operations: |
|
|
|
|
|
|
|
|
Cost of services sold |
|
|
368,994 |
|
|
|
344,982 |
|
|
|
715,351 |
|
|
|
674,835 |
|
Cost of products sold |
|
|
34,205 |
|
|
|
30,466 |
|
|
|
64,867 |
|
|
|
57,980 |
|
Selling, general and administrative expenses |
|
|
67,935 |
|
|
|
70,805 |
|
|
|
137,088 |
|
|
|
142,419 |
|
Research and development expenses |
|
|
296 |
|
|
|
323 |
|
|
|
352 |
|
|
|
480 |
|
Goodwill impairment charge |
|
|
104,580 |
|
|
|
— |
|
|
|
104,580 |
|
|
|
— |
|
Other (income) expenses, net |
|
|
2,045 |
|
|
|
(4,167 |
) |
|
|
866 |
|
|
|
(5,158 |
) |
Total costs and expenses |
|
|
578,055 |
|
|
|
442,409 |
|
|
|
1,023,104 |
|
|
|
870,556 |
|
Operating income (loss) from continuing
operations |
|
|
(97,003 |
) |
|
|
26,265 |
|
|
|
(89,255 |
) |
|
|
45,383 |
|
Interest income |
|
|
693 |
|
|
|
577 |
|
|
|
1,337 |
|
|
|
1,124 |
|
Interest expense |
|
|
(16,692 |
) |
|
|
(15,643 |
) |
|
|
(31,784 |
) |
|
|
(31,899 |
) |
Facility fees and debt-related
income (expense) |
|
|
2,149 |
|
|
|
(50 |
) |
|
|
1,617 |
|
|
|
(5,308 |
) |
Defined benefit pension
income |
|
|
2,247 |
|
|
|
3,956 |
|
|
|
4,657 |
|
|
|
7,890 |
|
Income (loss) from continuing operations before income
taxes and equity income |
|
|
(108,606 |
) |
|
|
15,105 |
|
|
|
(113,428 |
) |
|
|
17,190 |
|
Income tax benefit (expense)
from continuing operations |
|
|
3,115 |
|
|
|
(4,797 |
) |
|
|
1,894 |
|
|
|
(6,898 |
) |
Equity income (loss) of
unconsolidated entities, net |
|
|
(114 |
) |
|
|
(76 |
) |
|
|
(245 |
) |
|
|
(195 |
) |
Income (loss) from continuing operations |
|
|
(105,605 |
) |
|
|
10,232 |
|
|
|
(111,779 |
) |
|
|
10,097 |
|
Discontinued
operations: |
|
|
|
|
|
|
|
|
Income (loss) from discontinued businesses |
|
|
1,879 |
|
|
|
8,239 |
|
|
|
(37,218 |
) |
|
|
11,603 |
|
Income tax benefit (expense) from discontinued businesses |
|
|
(770 |
) |
|
|
(3,391 |
) |
|
|
5,821 |
|
|
|
(5,055 |
) |
Income (loss) from discontinued operations, net of
tax |
|
|
1,109 |
|
|
|
4,848 |
|
|
|
(31,397 |
) |
|
|
6,548 |
|
Net income
(loss) |
|
|
(104,496 |
) |
|
|
15,080 |
|
|
|
(143,176 |
) |
|
|
16,645 |
|
Less: Net (income) loss attributable to noncontrolling
interests |
|
|
(1,095 |
) |
|
|
(1,692 |
) |
|
|
(2,254 |
) |
|
|
(3,122 |
) |
Net income (loss)
attributable to Harsco Corporation |
|
$ |
(105,591 |
) |
|
$ |
13,388 |
|
|
$ |
(145,430 |
) |
|
$ |
13,523 |
|
Amounts attributable to Harsco Corporation common
stockholders: |
Income (loss) from continuing operations, net of tax |
|
$ |
(106,700 |
) |
|
$ |
8,540 |
|
|
$ |
(114,033 |
) |
|
$ |
6,975 |
|
Income (loss) from discontinued operations, net of tax |
|
|
1,109 |
|
|
|
4,848 |
|
|
|
(31,397 |
) |
|
|
6,548 |
|
Net income (loss) attributable to Harsco Corporation common
stockholders |
|
$ |
(105,591 |
) |
|
$ |
13,388 |
|
|
$ |
(145,430 |
) |
|
$ |
13,523 |
|
Weighted-average shares of
common stock outstanding |
|
|
79,509 |
|
|
|
79,265 |
|
|
|
79,437 |
|
|
|
79,177 |
|
Basic
earnings (loss) per common share attributable to Harsco Corporation
common stockholders: |
Continuing operations |
|
$ |
(1.34 |
) |
|
$ |
0.11 |
|
|
$ |
(1.44 |
) |
|
$ |
0.09 |
|
Discontinued operations |
|
|
0.01 |
|
|
|
0.06 |
|
|
|
(0.40 |
) |
|
|
0.08 |
|
Basic earnings (loss) per share attributable to Harsco
Corporation common stockholders |
|
$ |
(1.33 |
) |
(a) |
$ |
0.17 |
|
|
$ |
(1.83 |
) |
|
$ |
0.17 |
|
Diluted weighted-average
shares of common stock outstanding |
|
|
79,509 |
|
|
|
80,774 |
|
|
|
79,437 |
|
|
|
80,397 |
|
Diluted
earnings (loss) per common share attributable to Harsco Corporation
common stockholders: |
Continuing operations |
|
$ |
(1.34 |
) |
|
$ |
0.11 |
|
|
$ |
(1.44 |
) |
|
$ |
0.09 |
|
Discontinued operations |
|
|
0.01 |
|
|
|
0.06 |
|
|
|
(0.40 |
) |
|
|
0.08 |
|
Diluted earnings (loss) per share attributable to Harsco
Corporation common stockholders |
|
$ |
(1.33 |
) |
|
$ |
0.17 |
|
|
$ |
(1.83 |
) |
|
$ |
0.17 |
|
HARSCO
CORPORATIONCONSOLIDATED BALANCE SHEETS
(Unaudited) |
|
|
|
|
(In thousands) |
|
June 302022 |
|
December 312021 |
ASSETS |
|
|
|
|
Current
assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
96,782 |
|
|
$ |
82,908 |
|
Restricted cash |
|
|
4,025 |
|
|
|
4,220 |
|
Trade accounts receivable, net |
|
|
267,747 |
|
|
|
377,881 |
|
Other receivables |
|
|
28,174 |
|
|
|
33,059 |
|
Inventories |
|
|
80,999 |
|
|
|
70,493 |
|
Prepaid expenses |
|
|
21,906 |
|
|
|
31,065 |
|
Current portion of assets held-for-sale |
|
|
263,913 |
|
|
|
265,413 |
|
Other current assets |
|
|
26,508 |
|
|
|
9,934 |
|
Total current assets |
|
|
790,054 |
|
|
|
874,973 |
|
Property, plant and equipment,
net |
|
|
637,480 |
|
|
|
653,913 |
|
Right-of-use assets, net |
|
|
104,212 |
|
|
|
101,576 |
|
Goodwill |
|
|
759,439 |
|
|
|
883,109 |
|
Intangible assets, net |
|
|
382,741 |
|
|
|
402,801 |
|
Deferred income tax
assets |
|
|
16,551 |
|
|
|
17,883 |
|
Assets held-for-sale |
|
|
65,079 |
|
|
|
71,234 |
|
Other assets |
|
|
43,403 |
|
|
|
48,419 |
|
Total assets |
|
$ |
2,798,959 |
|
|
$ |
3,053,908 |
|
LIABILITIES |
|
|
|
|
Current
liabilities: |
|
|
|
|
Short-term borrowings |
|
$ |
2,196 |
|
|
$ |
7,748 |
|
Current maturities of long-term debt |
|
|
17,952 |
|
|
|
10,226 |
|
Accounts payable |
|
|
213,037 |
|
|
|
186,126 |
|
Accrued compensation |
|
|
40,744 |
|
|
|
48,165 |
|
Current portion of operating lease liabilities |
|
|
26,073 |
|
|
|
25,590 |
|
Current portion of liabilities of assets held-for-sale |
|
|
151,369 |
|
|
|
161,999 |
|
Other current liabilities |
|
|
147,022 |
|
|
|
161,537 |
|
Total current liabilities |
|
|
598,393 |
|
|
|
601,391 |
|
Long-term debt |
|
|
1,302,857 |
|
|
|
1,359,446 |
|
Retirement plan
liabilities |
|
|
60,424 |
|
|
|
93,693 |
|
Operating lease
liabilities |
|
|
77,104 |
|
|
|
74,571 |
|
Liabilities of assets
held-for-sale |
|
|
7,827 |
|
|
|
8,492 |
|
Environmental liabilities |
|
|
26,669 |
|
|
|
28,435 |
|
Deferred tax liabilities |
|
|
27,372 |
|
|
|
33,826 |
|
Other liabilities |
|
|
46,610 |
|
|
|
48,284 |
|
Total liabilities |
|
|
2,147,256 |
|
|
|
2,248,138 |
|
HARSCO CORPORATION
STOCKHOLDERS’ EQUITY |
|
|
|
|
Common stock |
|
|
145,319 |
|
|
|
144,883 |
|
Additional paid-in capital |
|
|
221,117 |
|
|
|
215,528 |
|
Accumulated other comprehensive loss |
|
|
(573,872 |
) |
|
|
(560,139 |
) |
Retained earnings |
|
|
1,649,080 |
|
|
|
1,794,510 |
|
Treasury stock |
|
|
(848,320 |
) |
|
|
(846,622 |
) |
Total Harsco Corporation stockholders’ equity |
|
|
593,324 |
|
|
|
748,160 |
|
Noncontrolling interests |
|
|
58,379 |
|
|
|
57,610 |
|
Total equity |
|
|
651,703 |
|
|
|
805,770 |
|
Total liabilities and equity |
|
$ |
2,798,959 |
|
|
$ |
3,053,908 |
|
HARSCO
CORPORATIONCONSOLIDATED STATEMENTS OF CASH
FLOWS (Unaudited) |
|
|
Three Months Ended June 30 |
|
Six Months Ended June 30 |
(In thousands) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
(104,496 |
) |
|
$ |
15,080 |
|
|
$ |
(143,176 |
) |
|
$ |
16,645 |
|
Adjustments to reconcile net income (loss) to net cash provided by
operating activities: |
Depreciation |
|
|
32,463 |
|
|
|
32,156 |
|
|
|
66,067 |
|
|
|
64,904 |
|
Amortization |
|
|
8,481 |
|
|
|
8,816 |
|
|
|
17,067 |
|
|
|
17,783 |
|
Deferred income tax (benefit) expense |
|
|
(6,121 |
) |
|
|
(2,986 |
) |
|
|
(10,396 |
) |
|
|
(6,407 |
) |
Equity (income) loss of unconsolidated entities, net |
|
|
114 |
|
|
|
76 |
|
|
|
245 |
|
|
|
195 |
|
Dividends from unconsolidated entities |
|
|
348 |
|
|
|
— |
|
|
|
526 |
|
|
|
— |
|
(Gain) loss on early extinguishment of debt |
|
|
(2,254 |
) |
|
|
— |
|
|
|
(2,254 |
) |
|
|
2,668 |
|
Goodwill impairment charge |
|
|
104,580 |
|
|
|
|
|
104,580 |
|
|
|
— |
|
Other, net |
|
|
761 |
|
|
|
(3,277 |
) |
|
|
1,020 |
|
|
|
(2,149 |
) |
Changes in assets and liabilities, net of acquisitions and
dispositions of businesses: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
102,971 |
|
|
|
(7,038 |
) |
|
|
87,607 |
|
|
|
(23,484 |
) |
Income tax refunds receivable, reimbursable to seller |
|
|
— |
|
|
|
— |
|
|
|
7,687 |
|
|
|
— |
|
Inventories |
|
|
(3,825 |
) |
|
|
15,049 |
|
|
|
(8,435 |
) |
|
|
15,456 |
|
Contract assets |
|
|
2,993 |
|
|
|
(18,796 |
) |
|
|
7,836 |
|
|
|
(37,866 |
) |
Right-of-use assets |
|
|
7,307 |
|
|
|
7,129 |
|
|
|
14,383 |
|
|
|
13,897 |
|
Accounts payable |
|
|
17,192 |
|
|
|
(4,899 |
) |
|
|
18,847 |
|
|
|
(13,491 |
) |
Accrued interest payable |
|
|
6,653 |
|
|
|
7,183 |
|
|
|
(740 |
) |
|
|
(137 |
) |
Accrued compensation |
|
|
(192 |
) |
|
|
6,242 |
|
|
|
(5,884 |
) |
|
|
4,701 |
|
Advances on contracts |
|
|
(5,818 |
) |
|
|
(3,653 |
) |
|
|
(13,626 |
) |
|
|
(13,351 |
) |
Operating lease liabilities |
|
|
(7,032 |
) |
|
|
(6,756 |
) |
|
|
(14,095 |
) |
|
|
(13,506 |
) |
Retirement plan liabilities, net |
|
|
(7,068 |
) |
|
|
(8,591 |
) |
|
|
(21,587 |
) |
|
|
(27,858 |
) |
Other assets and liabilities |
|
|
4,997 |
|
|
|
968 |
|
|
|
12,067 |
|
|
|
15,530 |
|
Net cash provided by operating activities |
|
|
152,054 |
|
|
|
36,703 |
|
|
|
117,739 |
|
|
|
13,530 |
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
|
(28,833 |
) |
|
|
(41,264 |
) |
|
|
(61,791 |
) |
|
|
(68,646 |
) |
Proceeds from sales of assets |
|
|
615 |
|
|
|
6,180 |
|
|
|
6,591 |
|
|
|
10,042 |
|
Expenditures for intangible assets |
|
|
(46 |
) |
|
|
(64 |
) |
|
|
(100 |
) |
|
|
(132 |
) |
Proceeds from note receivable |
|
|
8,605 |
|
|
|
6,400 |
|
|
|
8,605 |
|
|
|
6,400 |
|
Net proceeds (payments) from settlement of foreign currency forward
exchange contracts |
|
|
3,938 |
|
|
|
449 |
|
|
|
4,999 |
|
|
|
(978 |
) |
Payments for settlements of interest rate swaps |
|
|
(1,061 |
) |
|
|
— |
|
|
|
(2,123 |
) |
|
|
— |
|
Other investing activities, net |
|
|
29 |
|
|
|
87 |
|
|
|
153 |
|
|
|
133 |
|
Net cash used by investing activities |
|
|
(16,753 |
) |
|
|
(28,212 |
) |
|
|
(43,666 |
) |
|
|
(53,181 |
) |
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
Short-term borrowings, net |
|
|
(2,082 |
) |
|
|
3,869 |
|
|
|
(31 |
) |
|
|
4,444 |
|
Current maturities and long-term debt: |
|
|
|
|
|
|
|
|
Additions |
|
|
32,956 |
|
|
|
30,645 |
|
|
|
104,961 |
|
|
|
465,518 |
|
Reductions |
|
|
(150,295 |
) |
|
|
(38,951 |
) |
|
|
(152,861 |
) |
|
|
(413,481 |
) |
Dividends paid to noncontrolling interests |
|
|
— |
|
|
|
(3,094 |
) |
|
|
— |
|
|
|
(3,094 |
) |
Sale (purchase) of noncontrolling interests |
|
|
1,901 |
|
|
|
— |
|
|
|
1,901 |
|
|
|
— |
|
Stock-based compensation - Employee taxes paid |
|
|
(321 |
) |
|
|
(687 |
) |
|
|
(1,698 |
) |
|
|
(3,172 |
) |
Payment of contingent consideration |
|
|
— |
|
|
|
— |
|
|
|
(6,915 |
) |
|
|
— |
|
Deferred financing costs |
|
|
— |
|
|
|
(1,303 |
) |
|
|
— |
|
|
|
(7,828 |
) |
Other financing activities, net |
|
|
— |
|
|
|
(201 |
) |
|
|
— |
|
|
|
(601 |
) |
Net cash provided (used) by financing activities |
|
|
(117,841 |
) |
|
|
(9,722 |
) |
|
|
(54,643 |
) |
|
|
41,786 |
|
Effect of exchange rate
changes on cash and cash equivalents, including restricted
cash |
|
|
(6,206 |
) |
|
|
1,193 |
|
|
|
(5,751 |
) |
|
|
483 |
|
Net increase (decrease) in
cash and cash equivalents, including restricted cash |
|
|
11,254 |
|
|
|
(38 |
) |
|
|
13,679 |
|
|
|
2,618 |
|
Cash and cash equivalents,
including restricted cash, at beginning of period |
|
|
89,553 |
|
|
|
82,325 |
|
|
|
87,128 |
|
|
|
79,669 |
|
Cash and cash
equivalents, including restricted cash, at end of
period |
|
$ |
100,807 |
|
|
$ |
82,287 |
|
|
$ |
100,807 |
|
|
$ |
82,287 |
|
HARSCO
CORPORATIONREVIEW OF OPERATIONS BY
SEGMENT (Unaudited) |
|
|
Three Months Ended |
|
Three Months Ended |
|
|
June 30, 2022 |
|
June 30, 2021 |
(In thousands) |
|
Revenues |
|
OperatingIncome (Loss) |
|
Revenues |
|
Operating Income (Loss) |
Harsco Environmental |
|
$ |
277,599 |
|
$ |
23,547 |
|
|
$ |
272,546 |
|
$ |
30,223 |
|
Harsco Clean Earth |
|
|
203,453 |
|
|
(111,668 |
) |
|
|
196,128 |
|
|
7,386 |
|
Corporate |
|
|
|
|
(8,882 |
) |
|
|
|
|
(11,344 |
) |
Consolidated Totals |
|
$ |
481,052 |
|
$ |
(97,003 |
) |
|
$ |
468,674 |
|
$ |
26,265 |
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
Six Months Ended |
|
|
June 30, 2022 |
|
June 30, 2021 |
(In thousands) |
|
Revenues |
|
OperatingIncome (Loss) |
|
Revenues |
|
Operating Income (Loss) |
Harsco Environmental |
|
$ |
539,650 |
|
$ |
41,814 |
|
|
$ |
530,532 |
|
$ |
56,158 |
|
Harsco Clean Earth |
|
|
394,199 |
|
|
(112,965 |
) |
|
|
385,407 |
|
|
10,564 |
|
Corporate |
|
|
|
|
(18,104 |
) |
|
|
— |
|
|
(21,339 |
) |
Consolidated Totals |
|
$ |
933,849 |
|
$ |
(89,255 |
) |
|
$ |
915,939 |
|
$ |
45,383 |
|
HARSCO
CORPORATIONRECONCILIATION OF ADJUSTED DILUTED
EARNINGS PER SHARE TO DILUTED EARNINGS (LOSS) PER SHARE FROM
CONTINUING OPERATIONS AS REPORTED (Unaudited) |
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
June 30 |
|
June 30 |
|
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
Diluted earnings (loss) per share from continuing operations as
reported |
|
$ |
(1.34 |
) |
|
$ |
0.11 |
|
|
$ |
(1.44 |
) |
|
$ |
0.09 |
|
|
Facility fees and debt-related
expense (income) (a) |
|
|
(0.03 |
) |
|
|
— |
|
|
|
(0.02 |
) |
|
|
0.07 |
|
|
Corporate strategic costs
(b) |
|
|
— |
|
|
|
0.02 |
|
|
|
— |
|
|
|
0.02 |
|
|
Harsco Clean Earth segment
goodwill impairment charge (c) |
|
|
1.32 |
|
|
|
— |
|
|
|
1.32 |
|
|
|
— |
|
|
Harsco Clean Earth Segment
severance costs (d) |
|
|
0.01 |
|
|
|
— |
|
|
|
0.02 |
|
|
|
— |
|
|
Taxes on above unusual items
(e) |
|
|
(0.04 |
) |
|
|
(0.01 |
) |
|
|
(0.04 |
) |
|
|
(0.02 |
) |
|
Adjusted diluted
earnings (loss) per share, including acquisition amortization
expense |
|
|
(0.07 |
) |
(g) |
|
0.12 |
|
|
|
(0.16 |
) |
|
|
0.15 |
|
(g) |
Acquisition amortization expense, net of tax (f) |
|
|
0.08 |
|
|
|
0.08 |
|
|
|
0.16 |
|
|
|
0.16 |
|
|
Adjusted diluted
earnings per share |
|
$ |
0.01 |
|
|
$ |
0.20 |
|
|
$ |
— |
|
|
$ |
0.31 |
|
|
(a) Income recognized related to a gain on the
repurchase of $25.0 million of Senior Notes, partially offset by
costs incurred at Corporate to amend the Company's Senior Secured
Credit Facilities (Q2 2022 $2.1million pre-tax; six months 2022
$1.6 million pre-tax) and costs 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 Revolving Credit Facility and to increase certain
levels set forth in the total net leverage ratio covenant (Q2 2021
$0.1 million pre-tax; six months 2021 $5.3 million pre-tax). |
(b) Certain
strategic costs incurred at Corporate associated with supporting
and executing the Company's long-term strategies. The six months
ended 2022 includes the relocation of the Company's headquarters
(Q2 2022 $0.2 million pre-tax; six months 2022 $(0.2) million
pre-tax and Q2 and six months 2021 $1.7 million pre-tax ). |
(c)
Non-cash goodwill impairment charge (Q2 2022 and the six months
2022 $104.6 million pre-tax). |
(d)
Severance and related costs incurred in the Harsco Clean Earth
Segment (Q2 2022 $1.1 million pre-tax; six months 2022 $1.4 million
pre-tax). |
(e) Unusual
items are tax-effected at the global effective tax rate, before
discrete items, in effect at the time the unusual item is recorded,
except for unusual items from countries where no tax benefit can be
realized, in which case a zero percent tax rate is used. |
(f) Acquisition amortization expense was $7.8
million pre-tax and $15.7 million pre-tax for Q2 2022 and the six
months 2022, respectively, and after-tax was $6.2 million and $12.4
million for Q2 2022 and the six months 2022, respectively.
Acquisition amortization expense was $8.1 million pre-tax and $16.2
million pre-tax for Q2 2021 and the six months 2021, respectively,
and after-tax was $6.5 million and $13.0 million for Q2 2021 and
the six months 2021, respectively. |
(g) Does
not total due to rounding. |
HARSCO
CORPORATIONRECONCILIATION OF PROJECTED ADJUSTED
DILUTED EARNINGS (LOSS) PER SHARE TO DILUTED EARNINGS PER SHARE
FROM CONTINUING OPERATIONS (a) (Unaudited) |
|
|
|
ProjectedThree Months EndingSeptember 30 |
|
ProjectedTwelve Months EndingDecember 31 |
|
|
|
|
2022 |
|
|
|
2022 |
|
|
|
|
Low |
|
High |
|
Low |
|
High |
|
Diluted earnings (loss) per share from continuing operations |
|
$ |
(0.16 |
) |
|
$ |
(0.10 |
) |
|
$ |
(1.72 |
) |
|
$ |
(1.58 |
) |
|
Corporate strategic costs |
|
|
0.01 |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
Harsco Clean Earth segment
goodwill impairment charge |
|
|
— |
|
|
|
— |
|
|
|
1.32 |
|
|
|
1.32 |
|
|
Harsco Clean Earth Segment
severance costs |
|
|
— |
|
|
|
— |
|
|
|
0.02 |
|
|
|
0.02 |
|
|
Corporate facility fees and
debt-related expense (income) |
|
|
— |
|
|
|
— |
|
|
|
(0.02 |
) |
|
|
(0.02 |
) |
|
Taxes on above unusual
items |
|
|
— |
|
|
|
— |
|
|
|
(0.04 |
) |
|
|
(0.04 |
) |
|
Adjusted diluted
earnings (loss) per share, including acquisition amortization
expense |
|
|
(0.15 |
) |
|
|
(0.09 |
) |
|
|
(0.44 |
) |
|
|
(0.30 |
) |
(b) |
Estimated acquisition
amortization expense, net of tax |
|
|
0.08 |
|
|
|
0.08 |
|
|
|
0.31 |
|
|
|
0.31 |
|
|
Adjusted diluted
earnings (loss) per share |
|
$ |
(0.08 |
) |
(b) |
$ |
(0.02 |
) |
(b) |
$ |
(0.13 |
) |
|
$ |
— |
|
|
(a) Excludes
Harsco Rail Segment. |
(b) Does not
total due to rounding. |
HARSCO
CORPORATIONRECONCILIATION OF ADJUSTED EBITDA BY
SEGMENT TO OPERATING INCOME (LOSS) AS REPORTED BY SEGMENT
(Unaudited) |
(In thousands) |
|
Harsco Environmental |
|
HarscoClean Earth |
|
Corporate |
|
ConsolidatedTotals |
|
|
|
|
|
|
|
|
|
Three
Months Ended June 30, 2022: |
|
|
|
|
|
|
Operating income (loss) as reported |
|
$ |
23,547 |
|
|
$ |
(111,668 |
) |
|
$ |
(8,882 |
) |
|
$ |
(97,003 |
) |
Corporate strategic costs |
|
|
— |
|
|
|
— |
|
|
|
229 |
|
|
|
229 |
|
Harsco Clean Earth Segment
goodwill impairment charge |
|
|
— |
|
|
|
104,580 |
|
|
|
— |
|
|
|
104,580 |
|
Harsco Clean Earth Segment
severance costs |
|
|
— |
|
|
|
1,148 |
|
|
|
— |
|
|
|
1,148 |
|
Operating income (loss)
excluding unusual items |
|
|
23,547 |
|
|
|
(5,940 |
) |
|
|
(8,653 |
) |
|
|
8,954 |
|
Depreciation |
|
|
27,467 |
|
|
|
4,536 |
|
|
|
460 |
|
|
|
32,463 |
|
Amortization |
|
|
1,714 |
|
|
|
6,131 |
|
|
|
— |
|
|
|
7,845 |
|
Adjusted EBITDA |
|
$ |
52,728 |
|
|
$ |
4,727 |
|
|
$ |
(8,193 |
) |
|
$ |
49,262 |
|
Revenues as reported |
|
$ |
277,599 |
|
|
$ |
203,453 |
|
|
|
|
$ |
481,052 |
|
Adjusted EBITDA margin
(%) |
|
|
19.0 |
% |
|
|
2.3 |
% |
|
|
|
|
10.2 |
% |
|
|
|
|
|
|
|
|
|
Three
Months Ended June 30, 2021: |
|
|
|
|
|
|
Operating income (loss) as
reported |
|
$ |
30,223 |
|
|
$ |
7,386 |
|
|
$ |
(11,344 |
) |
|
$ |
26,265 |
|
Corporate acquisition and
integration costs |
|
|
— |
|
|
|
— |
|
|
|
1,681 |
|
|
|
1,681 |
|
Operating income (loss)
excluding unusual items |
|
|
30,223 |
|
|
|
7,386 |
|
|
|
(9,663 |
) |
|
|
27,946 |
|
Depreciation |
|
|
25,550 |
|
|
|
4,905 |
|
|
|
494 |
|
|
|
30,949 |
|
Amortization |
|
|
2,035 |
|
|
|
6,063 |
|
|
|
— |
|
|
|
8,098 |
|
Adjusted EBITDA |
|
$ |
57,808 |
|
|
$ |
18,354 |
|
|
$ |
(9,169 |
) |
|
$ |
66,993 |
|
Revenues as reported |
|
$ |
272,546 |
|
|
$ |
196,128 |
|
|
|
|
$ |
468,674 |
|
Adjusted EBITDA margin
(%) |
|
|
21.2 |
% |
|
|
9.4 |
% |
|
|
|
|
14.3 |
% |
HARSCO
CORPORATIONRECONCILIATION OF CONSOLIDATED ADJUSTED
EBITDA TO CONSOLIDATED INCOME (LOSS) FROM CONTINUING OPERATIONS AS
REPORTED (Unaudited) |
|
|
|
|
Three Months Ended June 30 |
(In thousands) |
|
|
2022 |
|
|
|
2021 |
|
Consolidated income (loss) from continuing operations |
|
$ |
(105,605 |
) |
|
$ |
10,232 |
|
|
|
|
|
|
Add back
(deduct): |
|
|
|
|
Equity in (income) loss of
unconsolidated entities, net |
|
|
114 |
|
|
|
76 |
|
Income tax (benefit)
expense |
|
|
(3,115 |
) |
|
|
4,797 |
|
Defined benefit pension
income |
|
|
(2,247 |
) |
|
|
(3,956 |
) |
Facility fees and debt-related
expense (income) |
|
|
(2,149 |
) |
|
|
50 |
|
Interest expense |
|
|
16,692 |
|
|
|
15,643 |
|
Interest income |
|
|
(693 |
) |
|
|
(577 |
) |
Depreciation |
|
|
32,463 |
|
|
|
30,949 |
|
Amortization |
|
|
7,845 |
|
|
|
8,098 |
|
|
|
|
|
|
Unusual
items: |
|
|
|
|
Corporate strategic costs |
|
|
229 |
|
|
|
1,681 |
|
Harsco Clean Earth goodwill
impairment charge |
|
|
104,580 |
|
|
|
— |
|
Harsco Clean Earth Segment
severance costs |
|
|
1,148 |
|
|
|
— |
|
Consolidated Adjusted
EBITDA |
|
$ |
49,262 |
|
|
$ |
66,993 |
|
HARSCO
CORPORATIONRECONCILIATION OF PROJECTED
CONSOLIDATED ADJUSTED EBITDA TO PROJECTED CONSOLIDATED INCOME FROM
CONTINUING OPERATIONS (a)(Unaudited) |
|
|
|
ProjectedThree Months EndingSeptember 30 |
|
ProjectedTwelve Months EndingDecember
31 |
|
|
|
|
2022 |
|
|
|
2022 |
|
|
(In millions) |
|
Low |
|
High |
|
Low |
|
High |
|
Consolidated loss from continuing operations |
|
|
(12 |
) |
|
|
(7 |
) |
|
|
(132 |
) |
|
|
(121 |
) |
|
|
|
|
|
|
|
|
|
|
|
Add back
(deduct): |
|
|
|
|
|
|
|
|
|
Income tax (income)
expense |
|
|
5 |
|
|
|
6 |
|
|
|
8 |
|
|
|
9 |
|
|
Facility fees and debt-related
(income) expense |
|
|
1 |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
Net interest |
|
|
20 |
|
|
|
19 |
|
|
|
70 |
|
|
|
68 |
|
|
Defined benefit pension
income |
|
|
(2 |
) |
|
|
(2 |
) |
|
|
(9 |
) |
|
|
(9 |
) |
|
Depreciation and
amortization |
|
|
42 |
|
|
|
42 |
|
|
|
166 |
|
|
|
166 |
|
|
|
|
|
|
|
|
|
|
|
|
Unusual
items: |
|
|
|
|
|
|
|
|
|
Corporate strategic costs |
|
|
1 |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
Harsco Clean Earth goodwill
impairment |
|
|
— |
|
|
|
— |
|
|
|
105 |
|
|
|
105 |
|
|
Harsco Clean Earth Segment
severance costs |
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
Consolidated Adjusted
EBITDA |
|
$ |
54 |
|
(b) |
$ |
59 |
|
(b) |
$ |
210 |
|
(b) |
$ |
220 |
|
(b) |
(a) Excludes
Harsco Rail Segment |
(b) Does not
total due to rounding. |
HARSCO
CORPORATIONRECONCILIATION OF FREE CASH FLOW TO NET
CASH PROVIDED BY OPERATING ACTIVITIES (Unaudited) |
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30 |
|
June 30 |
(In thousands) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net cash provided by operating activities |
|
$ |
152,054 |
|
|
$ |
36,703 |
|
|
|
117,739 |
|
|
$ |
13,530 |
|
Less capital expenditures |
|
|
(28,833 |
) |
|
|
(41,264 |
) |
|
|
(61,791 |
) |
|
|
(68,646 |
) |
Less expenditures for intangible assets |
|
|
(46 |
) |
|
|
(64 |
) |
|
|
(100 |
) |
|
|
(132 |
) |
Plus capital expenditures for strategic ventures (a) |
|
|
180 |
|
|
|
926 |
|
|
|
508 |
|
|
|
1,798 |
|
Plus total proceeds from sales of assets (b) |
|
|
615 |
|
|
|
6,180 |
|
|
|
6,591 |
|
|
|
10,042 |
|
Plus transaction-related expenditures (c) |
|
|
218 |
|
|
|
3,920 |
|
|
|
1,096 |
|
|
|
18,004 |
|
Harsco Rail free cash flow deficit |
|
|
7,667 |
|
|
|
14,064 |
|
|
|
38,988 |
|
|
|
29,748 |
|
Free cash flow |
|
$ |
131,855 |
|
|
$ |
20,465 |
|
|
$ |
103,031 |
|
|
$ |
4,344 |
|
(a) 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. |
(b) Asset sales are a normal part of the business
model, primarily for the Harsco Environmental Segment. |
(c) Expenditures directly related to the Company's
acquisition and divestiture transactions and costs at Corporate
associated with amending the Company's existing Senior Secured
Credit Facilities. |
HARSCO
CORPORATIONRECONCILIATION OF PROJECTED FREE CASH
FLOW TO PROJECTED NET CASH PROVIDED BY OPERATING
ACTIVITIES (Unaudited) (a) |
|
|
ProjectedTwelve Months
EndingDecember 31 |
|
|
|
2022 |
|
(In millions) |
|
Low |
|
High |
Net cash provided by operating activities |
|
$ |
240 |
|
|
$ |
255 |
|
Less net capital expenditures |
|
|
(125 |
) |
|
|
(130 |
) |
Free cash flow |
|
|
115 |
|
|
|
125 |
|
(a) Excludes
former Harsco Rail Segment |
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