Date of Report (Date of earliest event reported) | ||||||||||||||||||||||||||
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(Exact name of registrant as specified in its charter) | ||||||||||||||||||||||||||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||||||||||||||
(Address of principal executive offices) | (Zip Code) | |||||||||||||||||||||||||
Registrant’s telephone number, including area code | ||||||||||||||||||||||||||
(Former name or former address, if changed since last report.) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Exhibit 99.1 |
Harsco Corporation | ||||||||
Date: February 24, 2022 | /s/ ANSHOOMAN AGA | |||||||
Anshooman Aga | ||||||||
Senior Vice President and Chief Financial Officer |
Investor Contact David Martin 717.612.5628 damartin@harsco.com | Media Contact Jay Cooney 717.730.3683 jcooney@harsco.com |
($ in millions, except per share amounts) | Q4 2021 | Q4 2020 | ||||||||||||
Revenues | $ | 462 | $ | 431 | ||||||||||
Operating income (loss) from continuing operations - GAAP | $ | 16 | $ | 9 | ||||||||||
Diluted EPS from continuing operations - GAAP | $ | 0.13 | $ | (0.09) | ||||||||||
Adjusted EBITDA - excluding unusual items | $ | 58 | $ | 59 | ||||||||||
Adjusted EBITDA margin - excluding unusual items | 12.6 | % | 13.6 | % | ||||||||||
Adjusted diluted EPS from continuing operations - excluding unusual items | $ | 0.22 | $ | 0.09 | ||||||||||
($ in millions, except per share amounts) | 2021 | 2020 | ||||||||||||
Revenues | $ | 1,848 | $ | 1,534 | ||||||||||
Operating income (loss) from continuing operations - GAAP | $ | 88 | $ | (3) | ||||||||||
Diluted EPS from continuing operations - GAAP | $ | 0.28 | $ | (0.63) | ||||||||||
Adjusted EBITDA - excluding unusual items | $ | 252 | $ | 208 | ||||||||||
Adjusted EBITDA margin - excluding unusual items | 13.6 | % | 13.5 | % | ||||||||||
Adjusted diluted EPS from continuing operations - excluding unusual items | $ | 0.69 | $ | 0.28 |
($ in millions) | Q4 2021 | Q4 2020 | ||||||||||||
Revenues | $ | 268 | $ | 246 | ||||||||||
Operating income - GAAP | $ | 20 | $ | 23 | ||||||||||
Adjusted EBITDA - excluding unusual items | $ | 49 | $ | 52 | ||||||||||
Adjusted EBITDA margin - excluding unusual items | 18.3 | % | 21.2 | % | ||||||||||
($ in millions) | Q4 2021 | Q4 2020 | ||||||||||||
Revenues | $ | 194 | $ | 185 | ||||||||||
Operating income - GAAP | $ | 5 | $ | 3 | ||||||||||
Adjusted EBITDA - excluding unusual items | $ | 16.4 | $ | 15.9 | ||||||||||
Adjusted EBITDA margin - excluding unusual items | 8.4 | % | 8.6 | % |
2022 Full Year Outlook (Continuing Operations) | |||||
GAAP Operating Income | $85 - $105 million | ||||
Adjusted EBITDA | $255 - $275 million | ||||
GAAP Diluted Earnings Per Share | $0.15 - 0.32 | ||||
Adjusted Diluted Earnings Per Share | $0.50 - 0.66 | ||||
Free Cash Flow | $30 - $50 million | ||||
Net Interest Expense | $61 - $63 million | ||||
Pension Income (Non-Operating) | $10 million | ||||
Net Capital Expenditures | $125 - $130 million | ||||
Effective Tax Rate, Excluding Any Unusual Items | 37 - 38% | ||||
Q1 2022 Outlook (Continuing Operations) | |||||
GAAP Operating Income | $4 - $9 million | ||||
Adjusted EBITDA | $47 - $52 million | ||||
GAAP Diluted Earnings Per Share | $(0.02) - (0.03) | ||||
Adjusted Diluted Earnings Per Share | $0.06 - 0.07 |
HARSCO CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | |||||||||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||||||
December 31 | December 31 | ||||||||||||||||||||||||||||
(In thousands, except per share amounts) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Revenues from continuing operations: | |||||||||||||||||||||||||||||
Service revenues | $ | 426,080 | $ | 402,488 | $ | 1,700,896 | $ | 1,400,648 | |||||||||||||||||||||
Product revenues | 35,993 | 28,999 | 147,503 | 133,385 | |||||||||||||||||||||||||
Total revenues | 462,073 | 431,487 | 1,848,399 | 1,534,033 | |||||||||||||||||||||||||
Costs and expenses from continuing operations: | |||||||||||||||||||||||||||||
Cost of services sold | 350,188 | 322,291 | 1,369,073 | 1,140,303 | |||||||||||||||||||||||||
Cost of products sold | 32,214 | 22,357 | 121,483 | 101,988 | |||||||||||||||||||||||||
Selling, general and administrative expenses | 59,184 | 76,020 | 272,233 | 284,442 | |||||||||||||||||||||||||
Research and development expenses | 145 | 73 | 956 | 534 | |||||||||||||||||||||||||
Other (income) expenses, net | 4,270 | 1,576 | (3,722) | 10,072 | |||||||||||||||||||||||||
Total costs and expenses | 446,001 | 422,317 | 1,760,023 | 1,537,339 | |||||||||||||||||||||||||
Operating income from continuing operations | 16,072 | 9,170 | 88,376 | (3,306) | |||||||||||||||||||||||||
Interest income | 563 | 557 | 2,231 | 2,129 | |||||||||||||||||||||||||
Interest expense | (15,595) | (15,936) | (63,235) | (58,196) | |||||||||||||||||||||||||
Unused debt commitment fees, amendment fees and loss on extinguishment of debt | — | — | (5,506) | (1,920) | |||||||||||||||||||||||||
Defined benefit pension income | 3,862 | 1,961 | 15,640 | 7,073 | |||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes and equity income | 4,902 | (4,248) | 37,506 | (54,220) | |||||||||||||||||||||||||
Income tax benefit (expense) from continuing operations | 5,625 | (2,257) | (9,089) | 8,673 | |||||||||||||||||||||||||
Equity income (loss) of unconsolidated entities, net | 186 | 10 | (302) | 186 | |||||||||||||||||||||||||
Income (loss) from continuing operations | 10,713 | (6,495) | 28,115 | (45,361) | |||||||||||||||||||||||||
Discontinued operations: | |||||||||||||||||||||||||||||
Gain on sale of discontinued business | — | (90) | — | 18,281 | |||||||||||||||||||||||||
Loss from discontinued businesses | (38,766) | 329 | (25,863) | 20,350 | |||||||||||||||||||||||||
Income tax benefit (expense) from discontinued businesses | 4,309 | 848 | 477 | (15,245) | |||||||||||||||||||||||||
Income (loss) from discontinued operations, net of tax | (34,457) | 1,087 | (25,386) | 23,386 | |||||||||||||||||||||||||
Net income (loss) | (23,744) | (5,408) | 2,729 | (21,975) | |||||||||||||||||||||||||
Less: Net income attributable to noncontrolling interests | (591) | (894) | (5,978) | (4,366) | |||||||||||||||||||||||||
Net income (loss) attributable to Harsco Corporation | $ | (24,335) | $ | (6,302) | $ | (3,249) | $ | (26,341) | |||||||||||||||||||||
Amounts attributable to Harsco Corporation common stockholders: | |||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of tax | $ | 10,122 | $ | (7,389) | $ | 22,137 | $ | (49,727) | |||||||||||||||||||||
Income (loss) from discontinued operations, net of tax | (34,457) | 1,087 | (25,386) | 23,386 | |||||||||||||||||||||||||
Net income (loss) attributable to Harsco Corporation common stockholders | $ | (24,335) | $ | (6,302) | $ | (3,249) | $ | (26,341) | |||||||||||||||||||||
Weighted-average shares of common stock outstanding | 79,294 | 79,006 | 79,234 | 78,939 | |||||||||||||||||||||||||
Basic earnings (loss) per common share attributable to Harsco Corporation common stockholders: | |||||||||||||||||||||||||||||
Continuing operations | $ | 0.13 | $ | (0.09) | $ | 0.28 | $ | (0.63) | |||||||||||||||||||||
Discontinued operations | (0.43) | 0.01 | (0.32) | 0.30 | |||||||||||||||||||||||||
Basic earnings (loss) per share attributable to Harsco Corporation common stockholders | $ | (0.31) | (a) | $ | (0.08) | $ | (0.04) | $ | (0.33) | ||||||||||||||||||||
Diluted weighted-average shares of common stock outstanding | 80,093 | 79,006 | 80,289 | 78,939 | |||||||||||||||||||||||||
Diluted earnings (loss) per common share attributable to Harsco Corporation common stockholders: | |||||||||||||||||||||||||||||
Continuing operations | $ | 0.13 | $ | (0.09) | $ | 0.28 | $ | (0.63) | |||||||||||||||||||||
Discontinued operations | (0.43) | 0.01 | (0.32) | 0.30 | |||||||||||||||||||||||||
Diluted earnings (loss) per share attributable to Harsco Corporation common stockholders | $ | (0.30) | $ | (0.08) | $ | (0.04) | $ | (0.33) |
HARSCO CORPORATION CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||||||||||
(In thousands) | December 31 2021 | December 31 2020 | ||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 82,908 | $ | 76,454 | ||||||||||
Restricted cash | 4,220 | 3,215 | ||||||||||||
Trade accounts receivable, net | 377,881 | 355,313 | ||||||||||||
Other receivables | 33,059 | 31,208 | ||||||||||||
Inventories | 70,493 | 61,001 | ||||||||||||
Prepaid expenses | 31,065 | 30,645 | ||||||||||||
Current portion of assets held-for-sale | 265,413 | 247,477 | ||||||||||||
Other current assets | 9,934 | 10,510 | ||||||||||||
Total current assets | 874,973 | 815,823 | ||||||||||||
Property, plant and equipment, net | 653,913 | 630,354 | ||||||||||||
Right-of-use assets, net | 101,576 | 92,495 | ||||||||||||
Goodwill | 883,109 | 889,048 | ||||||||||||
Intangible assets, net | 402,801 | 435,116 | ||||||||||||
Deferred income tax assets | 17,883 | 10,368 | ||||||||||||
Assets held-for-sale | 71,234 | 69,906 | ||||||||||||
Other assets | 48,419 | 50,177 | ||||||||||||
Total assets | $ | 3,053,908 | $ | 2,993,287 | ||||||||||
LIABILITIES | ||||||||||||||
Current liabilities: | ||||||||||||||
Short-term borrowings | $ | 7,748 | $ | 7,450 | ||||||||||
Current maturities of long-term debt | 10,226 | 13,576 | ||||||||||||
Accounts payable | 186,126 | 164,102 | ||||||||||||
Accrued compensation | 48,165 | 44,382 | ||||||||||||
Income taxes payable | 6,378 | 3,403 | ||||||||||||
Current portion of operating lease liabilities | 25,590 | 23,117 | ||||||||||||
Current portion of liabilities of assets held-for-sale | 161,999 | 127,927 | ||||||||||||
Other current liabilities | 155,159 | 153,998 | ||||||||||||
Total current liabilities | 601,391 | 537,955 | ||||||||||||
Long-term debt | 1,359,446 | 1,271,189 | ||||||||||||
Retirement plan liabilities | 93,693 | 231,335 | ||||||||||||
Operating lease liabilities | 74,571 | 67,126 | ||||||||||||
Liabilities of assets held-for-sale | 8,492 | 52,851 | ||||||||||||
Environmental liabilities | 28,435 | 29,424 | ||||||||||||
Deferred tax liabilities | 33,826 | 36,192 | ||||||||||||
Other liabilities | 48,284 | 53,816 | ||||||||||||
Total liabilities | 2,248,138 | 2,279,888 | ||||||||||||
HARSCO CORPORATION STOCKHOLDERS’ EQUITY | ||||||||||||||
Common stock | 144,883 | 144,288 | ||||||||||||
Additional paid-in capital | 215,528 | 204,078 | ||||||||||||
Accumulated other comprehensive loss | (560,139) | (645,741) | ||||||||||||
Retained earnings | 1,794,510 | 1,797,759 | ||||||||||||
Treasury stock | (846,622) | (843,230) | ||||||||||||
Total Harsco Corporation stockholders’ equity | 748,160 | 657,154 | ||||||||||||
Noncontrolling interests | 57,610 | 56,245 | ||||||||||||
Total equity | 805,770 | 713,399 | ||||||||||||
Total liabilities and equity | $ | 3,053,908 | $ | 2,993,287 |
HARSCO CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | ||||||||||||||||||||||||||
Three Months Ended December 31 | Twelve Months Ended December 31 | |||||||||||||||||||||||||
(In thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||||
Net income (loss) | $ | (23,744) | $ | (5,408) | $ | 2,729 | $ | (21,975) | ||||||||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||||||||||||||
Depreciation | 33,066 | 31,901 | 131,449 | 125,765 | ||||||||||||||||||||||
Amortization | 8,670 | 9,216 | 35,224 | 33,937 | ||||||||||||||||||||||
Deferred income tax (benefit) expense | (8,019) | (1,231) | (16,930) | 1,115 | ||||||||||||||||||||||
Equity in (income) loss of unconsolidated entities, net | (186) | (10) | 302 | (186) | ||||||||||||||||||||||
Dividends from unconsolidated entities | 269 | 216 | 269 | 216 | ||||||||||||||||||||||
Loss (gain) on sale from discontinued business | — | — | — | (18,281) | ||||||||||||||||||||||
Loss on early extinguishment of debt | — | 90 | 2,668 | — | ||||||||||||||||||||||
Other, net | 3,209 | 646 | 2,062 | 310 | ||||||||||||||||||||||
Changes in assets and liabilities, net of acquisitions and dispositions of businesses: | ||||||||||||||||||||||||||
Accounts receivable | 12,782 | 7,913 | (19,781) | 34,221 | ||||||||||||||||||||||
Income tax refunds receivable, reimbursable to seller | 2,135 | 136 | 2,870 | (11,032) | ||||||||||||||||||||||
Inventories | (11,340) | (480) | (7,783) | (12,281) | ||||||||||||||||||||||
Contract assets | 8,695 | (1,601) | (43,510) | (28,376) | ||||||||||||||||||||||
Right-of-use assets | 7,250 | 7,205 | 28,300 | 25,400 | ||||||||||||||||||||||
Accounts payable | 2,007 | (12,964) | 14,118 | (14,452) | ||||||||||||||||||||||
Accrued interest payable | 7,429 | 7,562 | (411) | (2,422) | ||||||||||||||||||||||
Accrued compensation | (5,629) | 1,126 | 6,469 | 2,921 | ||||||||||||||||||||||
Advances on contracts | (314) | (8,653) | (14,311) | 10,492 | ||||||||||||||||||||||
Operating lease liabilities | (6,753) | (6,921) | (27,307) | (24,785) | ||||||||||||||||||||||
Retirement plan liabilities, net | (9,086) | (9,355) | (45,786) | (33,257) | ||||||||||||||||||||||
Income taxes payable - Gain on sale of discontinued businesses | — | (2,031) | — | (12,373) | ||||||||||||||||||||||
Other assets and liabilities | 5,006 | (5,815) | 21,556 | (1,139) | ||||||||||||||||||||||
Net cash provided by operating activities | 25,447 | 11,542 | 72,197 | 53,818 | ||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||
Purchases of property, plant and equipment | (48,819) | (41,128) | (158,326) | (120,224) | ||||||||||||||||||||||
Purchase of businesses, net of cash acquired | — | — | — | (432,855) | ||||||||||||||||||||||
Proceeds from sale of businesses, net | — | — | — | 37,219 | ||||||||||||||||||||||
Proceeds from sales of assets | 1,212 | 1,731 | 16,724 | 6,204 | ||||||||||||||||||||||
Expenditures for intangible assets | (71) | (148) | (358) | (317) | ||||||||||||||||||||||
Proceeds from note receivable | — | — | 6,400 | — | ||||||||||||||||||||||
Net proceeds (payments) from settlement of foreign currency forward exchange contracts | 12,004 | (11,055) | 10,940 | (10,519) | ||||||||||||||||||||||
Other investing activities, net | (10) | 45 | 171 | (152) | ||||||||||||||||||||||
Net cash used by investing activities | (35,684) | (50,555) | (124,449) | (520,644) | ||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||
Short-term borrowings, net | (3,715) | (100) | 935 | 1,612 | ||||||||||||||||||||||
Current maturities and long-term debt: | ||||||||||||||||||||||||||
Additions | 33,195 | 57,814 | 540,663 | 638,717 | ||||||||||||||||||||||
Reductions | (12,497) | (27,888) | (464,848) | (139,887) | ||||||||||||||||||||||
Dividends paid to noncontrolling interests | — | (2,978) | (3,103) | (2,978) | ||||||||||||||||||||||
Sale (purchase) of noncontrolling interests | — | (561) | — | (561) | ||||||||||||||||||||||
Stock-based compensation - Employee taxes paid | (119) | (115) | (3,392) | (4,303) | ||||||||||||||||||||||
Payment of contingent consideration | (854) | — | (1,588) | (2,342) | ||||||||||||||||||||||
Deferred financing costs | — | — | (7,828) | (1,928) | ||||||||||||||||||||||
Other financing activities, net | — | (4) | (601) | (1,372) | ||||||||||||||||||||||
Net cash provided (used) by financing activities | 16,010 | 26,168 | 60,238 | 486,958 | ||||||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents, including restricted cash | 1,252 | 6,372 | (527) | (195) | ||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents, including restricted cash | 7,025 | (6,473) | 7,459 | 19,937 | ||||||||||||||||||||||
Cash and cash equivalents, including restricted cash, at beginning of period | 80,103 | 86,142 | 79,669 | 59,732 | ||||||||||||||||||||||
Cash and cash equivalents, including restricted cash, at end of period | $ | 87,128 | $ | 79,669 | $ | 87,128 | $ | 79,669 |
HARSCO CORPORATION REVIEW OF OPERATIONS BY SEGMENT (Unaudited) | ||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||
December 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||
(In thousands) | Revenues | Operating Income (Loss) | Revenues | Operating Income (Loss) | ||||||||||||||||||||||
Harsco Environmental | $ | 267,649 | $ | 19,614 | $ | 246,388 | $ | 22,606 | ||||||||||||||||||
Harsco Clean Earth | 194,424 | 5,183 | 185,099 | 3,151 | ||||||||||||||||||||||
Corporate | — | (8,725) | — | (16,587) | ||||||||||||||||||||||
Consolidated Totals | $ | 462,073 | $ | 16,072 | $ | 431,487 | $ | 9,170 | ||||||||||||||||||
Twelve Months Ended | Twelve Months Ended | |||||||||||||||||||||||||
December 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||
(In thousands) | Revenues | Operating Income (Loss) | Revenues | Operating Income (Loss) | ||||||||||||||||||||||
Harsco Environmental | $ | 1,068,083 | $ | 103,402 | $ | 914,445 | $ | 59,006 | ||||||||||||||||||
Harsco Clean Earth (a) | 780,316 | 25,639 | 619,588 | 16,096 | ||||||||||||||||||||||
Corporate | — | (40,665) | — | (78,408) | ||||||||||||||||||||||
Consolidated Totals | $ | 1,848,399 | $ | 88,376 | $ | 1,534,033 | $ | (3,306) |
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 | 2021 | 2020 | ||||||||||||||||||||||||||
Diluted earnings (loss) per share from continuing operations as reported | $ | 0.13 | $ | (0.09) | $ | 0.28 | $ | (0.63) | |||||||||||||||||||||
Corporate unused debt commitment fees, amendment fees and loss on extinguishment of debt (a) | — | — | 0.07 | 0.02 | |||||||||||||||||||||||||
Corporate strategic costs (b) | 0.02 | — | 0.06 | — | |||||||||||||||||||||||||
Harsco Environmental Segment severance costs (c) | — | 0.03 | (0.01) | 0.09 | |||||||||||||||||||||||||
Corporate acquisition and integration costs (d) | — | 0.09 | — | 0.61 | |||||||||||||||||||||||||
Corporate contingent consideration adjustments (e) | — | — | — | 0.03 | |||||||||||||||||||||||||
Corporate acquisition related tax benefit (f) | — | — | — | (0.03) | |||||||||||||||||||||||||
Harsco Clean Earth Segment integration costs (g) | — | 0.02 | — | 0.02 | |||||||||||||||||||||||||
Harsco Clean Earth Segment severance costs (h) | — | — | — | — | |||||||||||||||||||||||||
Taxes on above unusual items (i) | — | (0.04) | (0.02) | (0.16) | |||||||||||||||||||||||||
Adjusted diluted earnings per share from continuing operations, including acquisition amortization expense | 0.14 | (k) | 0.01 | 0.37 | (k) | (0.03) | (k) | ||||||||||||||||||||||
Acquisition amortization expense, net of tax (j) | 0.08 | 0.08 | 0.32 | 0.31 | |||||||||||||||||||||||||
Adjusted diluted earnings per share from continuing operations | $ | 0.22 | $ | 0.09 | $ | 0.69 | $ | 0.28 | |||||||||||||||||||||
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 Three Months Ending March 31 | Projected Twelve Months Ending December 31 | ||||||||||||||||||||||||||||
2022 | 2022 | ||||||||||||||||||||||||||||
Low | High | Low | High | ||||||||||||||||||||||||||
Diluted earnings per share from continuing operations | $ | (0.03) | $ | (0.02) | $ | 0.15 | $ | 0.32 | |||||||||||||||||||||
Corporate strategic costs | — | — | 0.03 | 0.03 | |||||||||||||||||||||||||
Harsco Clean Earth Segment severance costs | 0.01 | 0.01 | 0.01 | 0.01 | |||||||||||||||||||||||||
Taxes on above unusual items | — | — | (0.01) | (0.01) | |||||||||||||||||||||||||
Adjusted diluted earnings per share from continuing operations, including acquisition amortization expense | (0.02) | (0.01) | 0.18 | 0.35 | |||||||||||||||||||||||||
Estimated acquisition amortization expense, net of tax | 0.08 | 0.08 | 0.32 | 0.32 | |||||||||||||||||||||||||
Adjusted diluted earnings per share from continuing operations | $ | 0.06 | $ | 0.07 | $ | 0.50 | $ | 0.66 | (b) |
HARSCO CORPORATION RECONCILIATION OF ADJUSTED EBITDA BY SEGMENT TO OPERATING INCOME (LOSS) AS REPORTED BY SEGMENT (Unaudited) | ||||||||||||||||||||||||||
(In thousands) | Harsco Environmental | Harsco Clean Earth | Corporate | Consolidated Totals | ||||||||||||||||||||||
Three Months Ended December 31, 2021: | ||||||||||||||||||||||||||
Operating income (loss) as reported | $ | 19,614 | $ | 5,183 | $ | (8,725) | $ | 16,072 | ||||||||||||||||||
Corporate strategic costs | — | — | 1,280 | 1,280 | ||||||||||||||||||||||
Harsco Clean Earth Segment severance costs | — | 390 | — | 390 | ||||||||||||||||||||||
Operating income (loss) excluding unusual items | 19,614 | 5,573 | (7,445) | 17,742 | ||||||||||||||||||||||
Depreciation | 27,384 | 4,854 | 434 | 32,672 | ||||||||||||||||||||||
Amortization | 1,972 | 6,001 | — | 7,973 | ||||||||||||||||||||||
Adjusted EBITDA | $ | 48,970 | $ | 16,428 | $ | (7,011) | $ | 58,387 | ||||||||||||||||||
Revenues as reported | $ | 267,649 | $ | 194,424 | $ | 462,073 | ||||||||||||||||||||
Adjusted EBITDA margin (%) | 18.3 | % | 8.4 | % | 12.6 | % | ||||||||||||||||||||
Three Months Ended December 31, 2020: | ||||||||||||||||||||||||||
Operating income (loss) as reported | $ | 22,606 | $ | 3,151 | $ | (16,587) | $ | 9,170 | ||||||||||||||||||
Corporate acquisition and integration costs | — | — | 6,909 | 6,909 | ||||||||||||||||||||||
Corporate contingent consideration adjustments | — | — | (136) | (136) | ||||||||||||||||||||||
Harsco Environmental Segment severance costs | 2,239 | — | — | 2,239 | ||||||||||||||||||||||
Harsco Clean Earth Segment integration costs | — | 1,745 | — | 1,745 | ||||||||||||||||||||||
Operating income (loss) excluding unusual items | 24,845 | 4,896 | (9,814) | 19,927 | ||||||||||||||||||||||
Depreciation | 25,345 | 4,681 | 491 | 30,517 | ||||||||||||||||||||||
Amortization | 1,998 | 6,351 | — | 8,349 | ||||||||||||||||||||||
Adjusted EBITDA | $ | 52,188 | $ | 15,928 | $ | (9,323) | $ | 58,793 | ||||||||||||||||||
Revenues as reported | $ | 246,388 | $ | 185,099 | $ | 431,487 | ||||||||||||||||||||
Adjusted EBITDA margin (%) | 21.2 | % | 8.6 | % | 13.6 | % |
HARSCO CORPORATION RECONCILIATION OF ADJUSTED EBITDA BY SEGMENT TO OPERATING INCOME (LOSS) AS REPORTED BY SEGMENT (Unaudited) | ||||||||||||||||||||||||||
(In thousands) | Harsco Environmental | Harsco Clean Earth (a) | Corporate | Consolidated Totals | ||||||||||||||||||||||
Twelve Months Ended December 31, 2021: | ||||||||||||||||||||||||||
Operating income (loss) as reported | $ | 103,402 | $ | 25,639 | $ | (40,665) | $ | 88,376 | ||||||||||||||||||
Corporate strategic costs | — | — | 4,450 | 4,450 | ||||||||||||||||||||||
Harsco Clean Earth Segment severance costs | — | 390 | — | 390 | ||||||||||||||||||||||
Harsco Environmental Segment severance costs | (900) | — | — | (900) | ||||||||||||||||||||||
Operating income (loss) excluding unusual items | 102,502 | 26,029 | (36,215) | 92,316 | ||||||||||||||||||||||
Depreciation | 105,830 | 19,672 | 1,900 | 127,402 | ||||||||||||||||||||||
Amortization | 8,052 | 24,180 | — | 32,232 | ||||||||||||||||||||||
Adjusted EBITDA | 216,384 | 69,881 | (34,315) | 251,950 | ||||||||||||||||||||||
Revenues as reported | $ | 1,068,083 | $ | 780,316 | $ | 1,848,399 | ||||||||||||||||||||
Adjusted EBITDA margin (%) | 20.3 | % | 9.0 | % | 13.6 | % | ||||||||||||||||||||
Twelve Months Ended December 31, 2020: | ||||||||||||||||||||||||||
Operating income (loss) as reported | $ | 59,006 | $ | 16,096 | $ | (78,408) | $ | (3,306) | ||||||||||||||||||
Corporate acquisition and integration costs | — | — | 48,493 | 48,493 | ||||||||||||||||||||||
Harsco Environmental Segment severance costs | 7,399 | — | — | 7,399 | ||||||||||||||||||||||
Corporate contingent consideration adjustments | — | — | 2,301 | 2,301 | ||||||||||||||||||||||
Harsco Clean Earth Segment integration costs | — | 1,859 | — | 1,859 | ||||||||||||||||||||||
Operating income (loss) excluding unusual items | 66,405 | 17,955 | (27,614) | 56,746 | ||||||||||||||||||||||
Depreciation | 100,971 | 17,450 | 2,022 | 120,443 | ||||||||||||||||||||||
Amortization | 7,825 | 22,814 | — | 30,639 | ||||||||||||||||||||||
Adjusted EBITDA | 175,201 | 58,219 | (25,592) | 207,828 | ||||||||||||||||||||||
Revenues as reported | $ | 914,445 | $ | 619,588 | $ | 1,534,033 | ||||||||||||||||||||
Adjusted EBITDA margin (%) | 19.2 | % | 9.4 | % | 13.5 | % | ||||||||||||||||||||
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 | $ | 10,713 | $ | (6,495) | ||||||||||
Add back (deduct): | ||||||||||||||
Equity in (income) loss of unconsolidated entities, net | (186) | (10) | ||||||||||||
Income tax (benefit) expense | (5,625) | 2,257 | ||||||||||||
Defined benefit pension income | (3,862) | (1,961) | ||||||||||||
Interest expense | 15,595 | 15,936 | ||||||||||||
Interest income | (563) | (557) | ||||||||||||
Depreciation | 32,672 | 30,517 | ||||||||||||
Amortization | 7,973 | 8,349 | ||||||||||||
Unusual items: | ||||||||||||||
Corporate strategic costs | 1,280 | — | ||||||||||||
Harsco Clean Earth Segment severance costs | 390 | — | ||||||||||||
Harsco Environmental Segment severance costs | — | 2,239 | ||||||||||||
Corporate acquisition and integration costs | — | 6,909 | ||||||||||||
Corporate contingent consideration adjustments | — | (136) | ||||||||||||
Clean Earth Segment integration costs | — | 1,745 | ||||||||||||
Consolidated Adjusted EBITDA | $ | 58,387 | $ | 58,793 |
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 | $ | 28,115 | $ | (45,361) | ||||||||||
Add back (deduct): | ||||||||||||||
Equity in (income) loss of unconsolidated entities, net | 302 | (186) | ||||||||||||
Income tax (benefit) expense | 9,089 | (8,673) | ||||||||||||
Defined benefit pension income | (15,640) | (7,073) | ||||||||||||
Unused debt commitment and amendment fees | 5,506 | 1,920 | ||||||||||||
Interest expense | 63,235 | 58,196 | ||||||||||||
Interest income | (2,231) | (2,129) | ||||||||||||
Depreciation | 127,402 | 120,443 | ||||||||||||
Amortization | 32,232 | 30,639 | ||||||||||||
Unusual items: | ||||||||||||||
Corporate strategic costs | 4,450 | — | ||||||||||||
Harsco Environmental Segment severance costs | (900) | — | ||||||||||||
Harsco Clean Earth Segment severance costs | 390 | — | ||||||||||||
Corporate acquisition and integration costs | — | 48,493 | ||||||||||||
Harsco Environmental Segment severance costs | — | 7,399 | ||||||||||||
Corporate contingent consideration adjustments | — | 2,301 | ||||||||||||
Harsco Clean Earth Segment integration costs | — | 1,859 | ||||||||||||
Consolidated Adjusted EBITDA | $ | 251,950 | $ | 207,828 |
HARSCO CORPORATION RECONCILIATION OF PROJECTED CONSOLIDATED ADJUSTED EBITDA TO PROJECTED CONSOLIDATED INCOME FROM CONTINUING OPERATIONS (a) (Unaudited) | |||||||||||||||||||||||||||||
Projected Three Months Ending March 31 | Projected Twelve Months Ending December 31 | ||||||||||||||||||||||||||||
2022 | 2022 | ||||||||||||||||||||||||||||
(In millions) | Low | High | Low | High | |||||||||||||||||||||||||
Consolidated income from continuing operations | $ | — | $ | (1) | $ | 20 | $ | 33 | |||||||||||||||||||||
Add back (deduct): | |||||||||||||||||||||||||||||
Income tax (income) expense | (9) | (2) | 13 | 21 | |||||||||||||||||||||||||
Net interest | 16 | 15 | 63 | 61 | |||||||||||||||||||||||||
Defined benefit pension income | (3) | (3) | (10) | (10) | |||||||||||||||||||||||||
Depreciation and amortization | 42 | 42 | 166 | 166 | |||||||||||||||||||||||||
Unusual items: | |||||||||||||||||||||||||||||
Corporate strategic costs | — | — | 3 | 3 | |||||||||||||||||||||||||
Harsco Clean Earth Segment severance costs | 1 | 1 | 1 | 1 | |||||||||||||||||||||||||
Consolidated Adjusted EBITDA | $ | 47 | $ | 52 | $ | 255 | (b) | $ | 275 | ||||||||||||||||||||
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 | $ | 11,542 | $ | 72,197 | $ | 53,818 | ||||||||||||||||||
Less capital expenditures | (48,819) | (41,128) | (158,326) | (120,224) | ||||||||||||||||||||||
Less expenditures for intangible assets | (71) | (148) | (358) | (317) | ||||||||||||||||||||||
Plus capital expenditures for strategic ventures (a) | 677 | 1,683 | 3,660 | 3,650 | ||||||||||||||||||||||
Plus total proceeds from sales of assets (b) | 1,212 | 1,731 | 16,724 | 6,204 | ||||||||||||||||||||||
Plus transaction-related expenditures (c) | 150 | 16,129 | 18,938 | 42,801 | ||||||||||||||||||||||
Plus taxes paid on sale of business | — | 2,031 | — | 16,216 | ||||||||||||||||||||||
Harsco Rail free cash flow deficit | 13,774 | 10,395 | 45,611 | 29,286 | ||||||||||||||||||||||
Free cash flow | $ | (7,630) | $ | 2,235 | $ | (1,554) | $ | 31,434 | ||||||||||||||||||
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 net capital expenditures | (125) | (130) | ||||||||||||
Free cash flow | 30 | 50 | ||||||||||||
Add growth capital expenditures | 40 | 40 | ||||||||||||
Free cash flow before growth capital expenditures from continuing operations | 70 | 90 |
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end
Cover Page |
Feb. 24, 2022 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Entity Registrant Name | Harsco Corporation |
Document Period End Date | Feb. 24, 2022 |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-03970 |
Entity Tax Identification Number | 23-1483991 |
Entity Address, Address Line One | 350 Poplar Church Road, |
Entity Address, City or Town | Camp Hill, |
Entity Address, State or Province | PA |
Entity Address, Postal Zip Code | 17011 |
City Area Code | (717) |
Local Phone Number | 763-7064 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common stock, par value $1.25 per share |
Trading Symbol | HSC |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0000045876 |
Amendment Flag | false |
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