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: August 2, 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) | 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 | ||||||||||
($ 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 | % | ||||||||||
($ 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 | % |
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) |
HARSCO CORPORATION CONSOLIDATED 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 CORPORATION CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||||||||||
(In thousands) | June 30 2022 | December 31 2021 | ||||||||||||
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 CORPORATION CONSOLIDATED 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 CORPORATION REVIEW OF OPERATIONS BY SEGMENT (Unaudited) | ||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||
June 30, 2022 | June 30, 2021 | |||||||||||||||||||||||||
(In thousands) | Revenues | Operating Income (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 | Operating Income (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 CORPORATION RECONCILIATION 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 | |||||||||||||||||||||
HARSCO CORPORATION RECONCILIATION OF PROJECTED ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE TO DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS (a) (Unaudited) | |||||||||||||||||||||||||||||
Projected Three Months Ending September 30 | Projected Twelve Months Ending December 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) | $ | — |
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 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 CORPORATION RECONCILIATION 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 CORPORATION RECONCILIATION OF PROJECTED CONSOLIDATED ADJUSTED EBITDA TO PROJECTED CONSOLIDATED INCOME FROM CONTINUING OPERATIONS (a) (Unaudited) | |||||||||||||||||||||||||||||
Projected Three Months Ending September 30 | Projected Twelve Months Ending December 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) | |||||||||||||||||
HARSCO CORPORATION RECONCILIATION 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 | ||||||||||||||||||
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 | $ | 240 | $ | 255 | ||||||||||
Less net capital expenditures | (125) | (130) | ||||||||||||
Free cash flow | 115 | 125 | ||||||||||||
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end
Cover Page |
Aug. 02, 2022 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Entity Registrant Name | Harsco Corporation |
Document Period End Date | Aug. 02, 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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