Enviri Corporation Reports Fourth Quarter and Full Year 2024 Results
-- Fourth quarter revenues totaled $559 million; GAAP consolidated loss from
continuing operations of $82 million
-- Adjusted EBITDA in Q4 totaled $70 million, an increase of 5% over the
prior-year quarter on an organic basis (adjusted for foreign exchange
translation and divestiture impacts)
-- Net cash provided by operating activities of $36 million and adjusted
free cash flow of $8 million in Q4
-- Full year 2024 revenues increased 3% on an organic basis
-- 2024 GAAP consolidated loss from continuing operations of $119 million;
Adjusted EBITDA totaled $319 million, an increase of 11% on an organic
basis
-- Credit agreement net leverage ratio improved from prior year-end to 4.07x
-- Entered into amended credit agreement that strengthens financial
flexibility and liquidity
-- 2025 Adjusted EBITDA expected to be within range of $305 million and $325
million, higher year-over-year when adjusted for divestitures and FX
impact; Free cash flow to increase compared with prior year to between
$30 million and $50 million
PHILADELPHIA, Feb. 20, 2025 (GLOBE NEWSWIRE) -- Enviri Corporation (NYSE: NVRI) (the "Company") today reported fourth quarter 2024 results. Revenues in the fourth quarter of 2024 totaled $559 million, and on a U.S. GAAP ("GAAP") basis, the consolidated loss from continuing operations for the fourth quarter of 2024 was $82 million. Q4 Adjusted EBITDA was $70 million, a decrease of 9% over the prior-year quarter on a reported basis and an increase of 5% on an organic basis.
On a GAAP basis, the fourth quarter of 2024 diluted loss per share from continuing operations was $1.03, including an asset impairment for an underperforming site and anticipated costs to address an environmental matter in Harsco Environmental as well as additional contract adjustments and a goodwill impairment in Harsco Rail. The adjusted diluted loss per share from continuing operations in the fourth quarter of 2024 was $0.04. These figures compare with a fourth quarter of 2023 GAAP diluted loss per share from continuing operations of $0.67, after strategic expenses and other unusual items, and an adjusted diluted loss per share from continuing operations of $0.03.
"Enviri performed well in 2024, and we continued to focus on consistent execution in the fourth quarter as we faced ongoing headwinds at Harsco Environmental and Rail," said Enviri Chairman and CEO Nick Grasberger. "The Company realized solid growth in 2024, and our adjusted earnings reached a 10-year high, led by Clean Earth. Strong operational execution, improvement initiatives and a favorable pricing environment drove Clean Earth to once again achieve record profits and margins. Enviri's other business segments delivered against key objectives during the year, while successfully adapting to various pressures. I'm proud of what the Enviri team accomplished in 2024, and I'd like to thank our employees for their ongoing dedication to our customers and our company."
"For 2025, our expectations are tempered as weak fundamentals within the global steel market persist and are expected to weigh on Harsco Environmental, while Clean Earth is projected to see continued growth. Importantly, our cash flow is anticipated to improve in 2025, supported by Harsco Rail's execution against certain contracts. We remain optimistic about Enviri's growth potential and the underlying value within our businesses, and will continue to deliver on our strategic priorities to best position the Company to deliver sustainable value creation for shareholders."
Enviri Corporation--Selected Fourth Quarter Results
($ in millions, except per share amounts) Q4 2024 Q4 2023
---------- ----------
Revenues $ 559 $ 599
Operating income/(loss) from continuing
operations - GAAP $ (63) $ (14)
Income (loss) from continuing operations $ (82) $ (53)
Diluted EPS from continuing operations -
GAAP $(1.03) $(0.67)
Adjusted EBITDA - non-GAAP $ 70 $ 77
Adjusted EBITDA margin - non-GAAP 12.6% 12.9%
Adjusted diluted EPS from continuing
operations - non-GAAP $(0.04) $(0.03)
---------------------------------------------- ----- -----
Note: Adjusted diluted earnings (loss) per share from continuing operations and Adjusted EBITDA details presented throughout this release are adjusted for unusual items; in addition, adjusted diluted earnings per share from continuing operations is adjusted for acquisition-related amortization expense. See below for definition of these non-GAAP measures and reconciliations to the most directly comparable GAAP financial measures.
Consolidated Fourth Quarter Operating Results
Consolidated revenues from continuing operations were $559 million, or 7% below the prior-year quarter due to business divestitures and foreign currency translation, which negatively impacted fourth quarter 2024 revenues by approximately $13 million compared with the same quarter in 2023.
The Company's GAAP consolidated loss from continuing operations was $82 million for the fourth quarter of 2024, compared with a GAAP consolidated loss of $53 million in the same quarter of 2023. Meanwhile, Adjusted EBITDA totaled $70 million in the fourth quarter of 2024 versus $77 million in the fourth quarter of the prior year, a decrease of 9%. Increased Adjusted EBITDA from Clean Earth was offset by lower contributions from the Company's other business segments. FX translation negatively impacted fourth quarter 2024 Adjusted EBITDA by approximately $4 million compared with the prior-year period.
Enviri Corporation--Selected 2024 Results
($ in millions, except per share amounts) 2024 2023
----- -----
Revenues $2,343 $2,366
Operating income (loss) from continuing
operations - GAAP $ 32 $ 80
Income (loss) from continuing operations $ (119) $ (84)
Diluted EPS from continuing operations -
GAAP $(1.55) $(1.03)
Adjusted EBITDA - excluding unusual items $ 319 $ 305
Adjusted EBITDA margin - excluding unusual
items 13.6% 12.9%
Adjusted diluted EPS from continuing
operations - excluding unusual items $(0.07) $ --
---------------------------------------------- ----- -----
Note: Adjusted diluted earnings (loss) per share from continuing operations and Adjusted EBITDA details presented throughout this release are adjusted for unusual items; in addition, adjusted diluted earnings per share from continuing operations is adjusted for acquisition-related amortization expense. See below for definition of these non-GAAP measures and reconciliations to the most directly comparable GAAP financial measures.
Consolidated Full Year 2024 Operating Results
Consolidated revenues were $2.34 billion in 2024, compared to $2.37 billion in 2023. The change in revenues for the year reflects business divestitures in 2024 and the impact of FX translations. Foreign currency translation negatively impacted 2024 revenues by approximately $29 million compared with the prior year.
The Company's GAAP consolidated loss from continuing operations was $119 million in 2024, while the GAAP consolidated loss in 2023 was $84 million. Adjusted EBITDA reached a 10-year high of $319 million in 2024, an increase versus 2023 ($305 million) despite the negative impacts from divestitures and FX, driven by higher earnings in Clean Earth and Harsco Rail.
On a GAAP basis, the diluted loss per share in 2024 was $1.55, and this figure compares with a diluted loss per share in 2023 of $1.03. These figures include various unusual items in each year. The adjusted diluted loss per share was $0.07 in 2024, compared with adjusted diluted earnings per share of $0.00 in 2023.
Fourth Quarter Business Review
Harsco Environmental
($ in millions) Q4 2024 Q4 2023
--------- ---------
Revenues $ 240 $ 292
Operating income (loss) - GAAP $ (41) $ 25
Adjusted EBITDA - non-GAAP $ 41 $ 56
Adjusted EBITDA margin - non-GAAP 17.1% 19.3%
------------------------------------- ---- ----
Harsco Environmental revenues totaled $240 million in the fourth quarter of 2024, a decrease of 18% compared with the prior-year quarter. This change is attributable to business divestitures, FX translation, and lower service levels, including the impact of contract exits. Excluding the FX and divestiture impacts, revenues declined 4%. The segment's GAAP operating loss was $41 million and Adjusted EBITDA totaled $41 million in the fourth quarter of 2024. These figures compare with GAAP operating income of $25 million and Adjusted EBITDA of $56 million in the prior-year period. The year-on-year change in adjusted earnings reflects the above-mentioned impacts. As a result, Harsco Environmental's Adjusted EBITDA margin was 17.1% in the fourth quarter of 2024 versus 19.3% in the comparable quarter of 2023.
Clean Earth
($ in millions) Q4 2024 Q4 2023
--------- ---------
Revenues $ 241 $ 237
Operating income (loss) - GAAP $ 21 $ 16
Adjusted EBITDA - non-GAAP $ 36 $ 29
Adjusted EBITDA margin - non-GAAP 15.0% 12.2%
------------------------------------- ---- ----
Clean Earth revenues totaled $241 million in the fourth quarter of 2024, a 2% increase over the prior-year quarter due to higher services pricing. The segment's GAAP operating income was $21 million and Adjusted EBITDA was $36 million in the fourth quarter of 2024. These figures compare with GAAP operating income of $16 million and Adjusted EBITDA of $29 million in the prior-year period. The year-on-year improvement in adjusted earnings is mainly attributable to higher pricing as well as efficiency improvements. As a result, Clean Earth's Adjusted EBITDA margin increased to 15.0% in the fourth quarter of 2024 versus 12.2% in the comparable quarter of 2023.
Harsco Rail
($ in millions) Q4 2024 Q4 2023
----------- -----------
Revenues $ 77 $ 71
Operating income (loss) - GAAP $ (32) $ (42)
Adjusted EBITDA - non-GAAP $ 2 $ 3
Adjusted EBITDA margin - non-GAAP 2.3% 3.8%
------------------------------------- --- ---
Harsco Rail revenues totaled $77 million in the fourth quarter of 2024, a 10% increase over the prior-year quarter. This change reflects higher equipment and technology volumes, as well as certain contract loss adjustments in the comparable 2023 quarter, partially offset by lower aftermarket parts volumes. The segment's GAAP operating loss was $32 million and Adjusted EBITDA was $2 million in the fourth quarter of 2024. These figures compare with a GAAP operating loss of $42 million and Adjusted EBITDA of $3 million in the prior-year period. The year-on-year change in adjusted earnings resulted from the above items as well as a less favorable business mix.
Cash Flow
Net cash provided by operating activities was $36 million in the fourth quarter of 2024, compared with net cash provided by operating activities of $68 million in the prior-year period. Adjusted free cash flow was $8 million in the fourth quarter of 2024, compared with $30 million in the prior-year period. The change in adjusted free cash flow compared with the prior-year quarter is attributable to lower cash earnings and working capital changes, partially offset by reduced capital spending.
For the full-year 2024, net cash provided by operating activities totaled $78 million, compared with net cash provided by operating activities of $114 million in 2023. Adjusted free cash flow was $(34) million in 2024, compared with $(12) million in the prior year. The change in full-year free cash flow can be mainly attributed to Harsco Rail, where working capital increased to support certain contracts.
2025 Outlook
The Company anticipates that its 2025 Adjusted EBITDA will be comparable with 2024, while its adjusted free cash flow will significantly improve. Adjusted EBITDA is projected to increase at Clean Earth and Harsco Rail but is expected to decline in Harsco Environmental, mainly as a result of FX translation and business divestitures. Meanwhile, the increase in free cash flow will be primarily driven by an expected improvement in Harsco Rail as certain contract milestones are completed, as well as lower pension contributions.
This outlook contemplates that economic conditions will remain stable and that the Company will benefit from various growth and improvement initiatives. Key business drivers for each segment as well as other 2025 guidance details are below.
Harsco Environmental Adjusted EBITDA is projected to be below prior-year results. Currency impacts, business divestitures, exited contracts and services mix are expected to be partially offset by improvement initiatives, new contracts and product volumes.
Clean Earth Adjusted EBITDA is expected to increase versus 2024 as a result of volume growth, efficiency initiatives and net higher pricing, offsetting the impact of investments and certain items not repeating in 2025 (such as the benefit in 2024 from the reduction in bad debt reserves).
Harsco Rail Adjusted EBITDA is expected to modestly increase versus 2024 as a result of higher demand, pricing and contract adjustments in 2024 not repeating, partially offset by a less favorable business mix.
Corporate spending is anticipated to increase when compared with 2024 mainly as a result of the normalization of incentive compensation as well as non-cash equity compensation.
2025 Full Year Outlook
GAAP Loss From Continuing Operations $(36) - $(17) million
----------------------------------------------------- ---------------------
Adjusted EBITDA $305 - $325 million
----------------------------------------------------- ---------------------
GAAP Diluted Earnings/(Loss) Per Share from
Continuing Operations $(0.49) - $(0.26)
----------------------------------------------------- ---------------------
Adjusted Diluted Earnings/(Loss) Per Share from
Continuing Operations $(0.25) - $(0.01)
----------------------------------------------------- ---------------------
Net Cash Provided By Operating Activities $156 - $186 million
----------------------------------------------------- ---------------------
Adjusted Free Cash Flow $30 - $50 million
----------------------------------------------------- ---------------------
Net Interest Expense, Excluding Any Unusual Items $105 - $109 million
----------------------------------------------------- ---------------------
Account Receivable Securitization Fees $10 million
----------------------------------------------------- ---------------------
Pension Expense (Non-Operating) $20 million
----------------------------------------------------- ---------------------
Tax Expense, Excluding Any Unusual Items $21 - $26 million
----------------------------------------------------- ---------------------
Net Capital Expenditures $130 - $140 million
----------------------------------------------------- ---------------------
Q1 2025 Outlook
GAAP Loss From Continuing Operations $(18) - $(12) million
----------------------------------------------------- ---------------------
Adjusted EBITDA $57 - $63 million
----------------------------------------------------- ---------------------
GAAP Diluted Earnings/(Loss) Per Share from $(0.24) - $(0.17)
Continuing Operations
----------------------------------------------------- ---------------------
Adjusted Diluted Earnings/(Loss) Per Share from $(0.18) - $(0.11)
Continuing Operations
----------------------------------------------------- ---------------------
Credit Agreement and Securitization Facility
The Company recently (February 2025) successfully amended its Credit Agreement to provide additional financial flexibility and liquidity, given the uncertain outlook within the global steel industry. Additionally, the Company amended its Securitization Facility. The changes to the Credit Agreement include revisions to its net leverage ratio, which now ends 2025 at 4.75x and 2026 at 4.25x, before stepping down to 4.00x in the second quarter of 2027. The Securitization Facility was amended to increase capacity from $150 million to $160 million. Further details can be found in the Company's 2024 Annual Report on Form 10-K.
Conference Call
The 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 www.investors.enviri.com, or by dialing (844) 481-2524 or (412) 317-0553 for international callers. Please ask to join the Enviri 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 Statements
The 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," "contemplate," "project," "target" 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) the Company's ability to successfully enter into new contracts and complete new acquisitions, divestitures, or strategic ventures in the time-frame contemplated or at all; (2) the Company's inability to comply with applicable environmental laws and regulations; (3) the Company's inability to obtain, renew, or maintain compliance with its operating permits or license agreements; (4) various economic, business, and regulatory risks associated with the waste management industry; (5) the seasonal nature of the Company's business; (6) risks caused by customer concentration, the fixed price and long-term customer contracts, especially those related to complex engineered equipment, and the competitive nature of the industries in which the Company operates; (7) the outcome of any disputes with customers, contractors and subcontractors; (8) the financial condition of the Company's customers, including the ability of customers (especially those that may be highly leveraged or have inadequate liquidity) to maintain their credit availability; (9) higher than expected claims under the Company's insurance policies, or losses that are uninsurable or that exceed existing insurance coverage; (10) market and competitive changes, including pricing pressures, market demand and acceptance for new products, services and technologies; changes in currency exchange rates, interest rates, commodity and fuel costs and capital costs; (11) the Company's ability to negotiate, complete, and integrate strategic transactions and joint ventures with strategic partners; (12) the Company's ability to effectively retain key management and employees, including due to unanticipated changes to demand for the Company's services, disruptions associated with labor disputes, and increased operating costs associated with union organizations; (13) 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; (14) failure to effectively prevent, detect or recover from breaches in the Company's cybersecurity infrastructure; (15) changes in the worldwide business environment in which the Company operates, including changes in general economic and industry conditions and cyclical slowdowns impacting the steel and aluminum industries; (16) fluctuations in exchange rates between the U.S. dollar and other currencies in which the Company conducts business; (17) unforeseen business disruptions in one or more of the many countries in which the Company operates due to changes in economic conditions, changes in governmental laws and regulations, including environmental, occupational health and safety, tax and import tariff standards and amounts; political instability, civil disobedience, armed hostilities, public health issues or other calamities; (18) liability for and implementation of environmental remediation matters; (19) product liability and warranty claims associated with the Company's operations; (20) the Company's ability to comply with financial covenants and obligations to financial counterparties; (21) the Company's outstanding indebtedness and exposure to derivative financial instruments that may be impacted by, among other factors, changes in interest rates; (22) tax liabilities and changes in tax laws; (23) 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; (24) risk and uncertainty associated with intangible assets; and the 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 I, Item 1A, "Risk Factors" of the Company's most recently filed Annual Report on Form 10-K, as updated by subsequent Quarterly Reports on Form 10-Q, which are filed with the Securities and Exchange Commission. 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 Measures
Measurements of financial performance not calculated in accordance with GAAP should be considered as supplements to, and not substitutes for, performance measurements calculated or derived in accordance with GAAP. Any such measures are not necessarily comparable to other similarly-titled measurements employed by other companies. The most comparable GAAP measures are included within the definitions below and reconciliations of these non-GAAP measures to the most directly comparable GAAP financial measures are included at the end of this press release.
Adjusted diluted earnings per share from continuing operations: Adjusted diluted earnings (loss) per share from continuing operations 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 from continuing operations 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 (loss) 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.
Adjusted free cash flow: Adjusted 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 certain transaction-related / debt-refinancing expenditures. The Company's management believes that Adjusted free cash flow is important to management and useful to investors as a supplemental measure as it indicates the cash flow available for working capital needs, repay debt obligations, invest in future growth through new business development activities, conduct strategic acquisitions or other uses of cash. It is important to note that Adjusted 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. This presentation provides a basis for comparison of ongoing operations and prospects.
Organic growth: Organic growth is a non-GAAP financial measure that calculates the change in Total revenue, excluding the impacts resulting from foreign currency translation, acquisitions, divestitures and certain unusual items. The Company believes this measure provides investors with a supplemental understanding of underlying revenue trends by providing revenue growth on a consistent basis.
About Enviri
Enviri is transforming the world to green, as a trusted global leader in providing a broad range of environmental services and related innovative solutions. The company serves a diverse customer base by offering critical recycle and reuse solutions for their waste streams, enabling customers to address their most complex environmental challenges and to achieve their sustainability goals. Enviri is based in Philadelphia, Pennsylvania and operates in more than 150 locations in over 30 countries. Additional information can be found at www.enviri.com.
ENVIRI CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended Twelve Months Ended
December 31 December 31
-------------------- --------------------------
(In thousands,
except per share
amounts) 2024 2023 2024 2023
------- ---------
Revenues from
continuing
operations:
Service revenues $477,624 $497,398 $1,970,193 $1,931,712
Product revenues 81,084 101,933 372,452 434,308
------- ------- --------- ---------
Total revenues 558,708 599,331 2,342,645 2,366,020
------- ------- --------- ---------
Costs and expenses
from continuing
operations:
Cost of services
sold 402,475 391,111 1,557,473 1,511,689
Cost of products
sold 86,887 127,356 345,114 404,442
Selling, general
and
administrative
expenses 92,625 91,810 359,388 353,985
Research and
development
expenses 1,269 1,017 3,961 3,458
Property, plant
and equipment
impairment
charge 23,444 -- 23,444 14,099
Goodwill and other
intangible asset
impairment
charges 13,026 -- 15,866 --
Remeasurement of
long-lived
assets -- -- 10,695 --
Gain on sale of
businesses, net -- -- (10,478) --
Other expense
(income), net 1,677 2,461 5,437 (1,591)
------- ------- --------- ---------
Total costs and
expenses 621,403 613,755 2,310,900 2,286,082
------- ------- --------- ---------
Operating income
(loss) from
continuing
operations (62,695) (14,424) 31,745 79,938
Interest income 682 2,013 6,795 6,809
Interest expense (27,348) (28,125) (112,217) (107,081)
Facility fees and
debt-related income
(expense) (2,578) (2,863) (11,265) (10,762)
Defined benefit
pension income
(expense) (4,129) (5,415) (16,728) (21,574)
------- ------- --------- ---------
Income (loss)
from continuing
operations
before income
taxes and
equity income (96,068) (48,814) (101,670) (52,670)
Income tax benefit
(expense) from
continuing
operations 14,306 (4,020) (17,066) (30,866)
Equity income (loss)
of unconsolidated
entities, net 74 (168) (10) (761)
------- ------- --------- ---------
Income (loss)
from continuing
operations (81,688) (53,002) (118,746) (84,297)
------- ------- --------- ---------
Discontinued
operations:
Income (loss)
from
discontinued
businesses (1,010) (775) (5,297) (5,133)
Income tax
benefit
(expense) from
discontinued
businesses 270 201 1,382 1,332
------- ------- --------- ---------
Income (loss)
from
discontinued
operations,
net of tax (740) (574) (3,915) (3,801)
------- ------- --------- ---------
Net income (loss) (82,428) (53,576) (122,661) (88,098)
Less: Net loss
(income)
attributable to
noncontrolling
interests (814) (779) (5,312) 1,977
------- ------- --------- ---------
Net income (loss)
attributable to
Enviri Corporation $(83,242) $(54,355) $ (127,973) $ (86,121)
======= ======= ========= =========
Amounts
attributable to
Enviri Corporation
common
stockholders:
Income (loss)
from continuing
operations, net
of tax $(82,502) $(53,781) $ (124,058) $ (82,320)
Income (loss) from
discontinued
operations, net
of tax (740) (574) (3,915) (3,801)
------- ------- --------- ---------
Net income
(loss)
attributable
to Enviri
Corporation
common
stockholders $(83,242) $(54,355) $ (127,973) $ (86,121)
======= ======= ========= =========
Weighted-average
shares of common
stock outstanding 80,216 79,881 80,118 79,796
Basic earnings (loss) per common share attributable
to Enviri Corporation common stockholders:
Continuing
operations $ (1.03) $ (0.67) $ (1.55) $ (1.03)
Discontinued
operations $ (0.01) $ (0.01) (0.05) (0.05)
------- ------- --------- ---------
Basic earnings
(loss) per share
attributable to
Enviri Corporation
common
stockholders $ (1.04) $ (0.68) $ (1.60) $ (1.08)
======= ======= ========= =========
Diluted
weighted-average
shares of common
stock outstanding 80,216 79,881 80,118 79,796
Diluted earnings (loss) per common share attributable
to Enviri Corporation common stockholders:
Continuing
operations $ (1.03) $ (0.67) $ (1.55) $ (1.03)
Discontinued
operations $ (0.01) $ (0.01) (0.05) (0.05)
------- ------- --------- ---------
Diluted earnings
(loss) per share
attributable to
Enviri Corporation
common
stockholders $ (1.04) $ (0.68) $ (1.60) $ (1.08)
======= ======= ========= =========
ENVIRI CORPORATION
CONSOLIDATED BALANCE SHEETS
December 31 December 31
(In thousands) 2024 2023
--------------------------------------- ----------- -------------
ASSETS
Current assets:
Cash and cash equivalents $ 88,359 $ 121,239
Restricted cash 1,799 3,375
Trade accounts receivable, net 260,690 338,187
Other receivables 40,439 40,565
Inventories 182,042 189,369
Current portion of contract assets 59,881 64,875
Prepaid expenses 62,435 58,723
Other current assets 14,880 11,023
--------- ---------
Total current assets 710,525 827,356
--------- ---------
Property, plant and equipment, net 664,292 707,397
Right-of-use assets, net 92,153 102,891
Goodwill 739,758 780,978
Intangible assets, net 298,438 327,983
Retirement plan assets 73,745 44,517
Deferred income tax assets 17,578 16,295
Other assets 53,744 47,281
--------- ---------
Total assets $2,650,233 $2,854,698
========= =========
LIABILITIES
Current liabilities:
Short-term borrowings $ 8,144 $ 14,871
Current maturities of long-term debt 21,004 15,558
Accounts payable 214,689 243,279
Accrued compensation 63,686 79,609
Income taxes payable 5,747 7,567
Reserve for forward losses on
contracts 54,320 52,919
Current portion of advances on
contracts 13,265 38,313
Current portion of operating lease
liabilities 26,049 28,775
Other current liabilities 159,478 174,342
--------- ---------
Total current liabilities 566,382 655,233
--------- ---------
Long-term debt 1,410,718 1,401,437
Retirement plan liabilities 27,019 45,087
Operating lease liabilities 67,998 75,476
Environmental liabilities 46,585 25,682
Deferred tax liabilities 26,796 29,160
Other liabilities 55,136 47,215
--------- ---------
Total liabilities 2,200,634 2,279,290
--------- ---------
ENVIRI CORPORATION STOCKHOLDERS' EQUITY
Common stock 146,844 146,105
Additional paid-in capital 255,102 238,416
Accumulated other comprehensive loss (538,964) (539,694)
Retained earnings 1,400,347 1,528,320
Treasury stock (851,881) (849,996)
--------- ---------
Total Enviri Corporation
stockholders' equity 411,448 523,151
Noncontrolling interests 38,151 52,257
--------- ---------
Total equity 449,599 575,408
--------- ---------
Total liabilities and equity $2,650,233 $2,854,698
========= =========
ENVIRI CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Three Months Ended Twelve Months Ended
December 31 December 31
-------------------- ------------------------
(In thousands) 2024 2023 2024 2023
------- --------
Cash flows from
operating
activities:
Net income (loss) $(82,428) $(53,576) $(122,661) $ (88,098)
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Depreciation 36,804 36,063 148,329 138,956
Amortization 7,382 8,081 31,471 32,408
Deferred income
tax (benefit)
expense (18,432) (981) (12,798) 2,965
Equity (income)
loss of
unconsolidated
entities, net (74) 168 10 761
Dividends from
unconsolidated
entities 117 -- 321 --
Right-of-use
assets 7,859 8,012 31,546 32,479
Property, plant
and equipment
impairment
charge 23,444 -- 23,444 14,099
Goodwill and
other
intangible
asset
impairment
charges 13,026 -- 15,866 --
Remeasurement
of long-lived
assets -- -- 10,695 --
Gain on sale of
businesses,
net -- -- (10,478) --
Stock-based
compensation 3,610 3,197 16,650 12,916
Other, net 28 2,227 (13,924) (2,749)
Changes in assets and
liabilities, net of
acquisitions and
dispositions of
businesses:
Accounts
receivable 42,633 9,688 45,864 (38,487)
Inventories 9,550 7,138 (7,534) (3,410)
Contract
assets 3,511 2,158 (11,412) 3,475
Accounts
payable (22,459) (4,272) (15,038) (5,090)
Accrued
interest
payable 4,679 7,049 (413) 221
Accrued
compensation 935 13,435 (12,477) 33,871
Advances on
contracts and
other
customer
advances (2,764) 7,664 (13,210) (14,160)
Operating
lease
liabilities (7,604) (7,718) (30,945) (30,698)
Retirement
plan
liabilities,
net 841 894 (6,140) (3,968)
Other assets
and
liabilities 15,634 29,049 10,897 28,957
------- ------- -------- --------
Net cash (used)
provided by
operating
activities 36,292 68,276 78,063 114,448
------- ------- -------- --------
Cash flows from
investing
activities:
Purchases of
property, plant
and equipment (34,497) (45,395) (136,591) (139,025)
Proceeds from sale
of businesses,
net (34) -- 57,633 --
Proceeds from
sales of assets 4,578 4,911 17,057 6,991
Expenditures for
intangible
assets (128) (25) (1,309) (503)
Proceeds from note
receivable -- -- 17,023 11,238
Net proceeds
(payments) from
settlement of
foreign currency
forward exchange
contracts 18,247 2,217 12,114 4,251
Other investing
activities, net -- 1 -- 463
------- ------- -------- --------
Net cash (used)
provided by
investing
activities (11,834) (38,291) (34,073) (116,585)
------- ------- -------- --------
Cash flows from
financing
activities:
Short-term
borrowings, net (3,216) 2,831 (6,198) 7,027
Current
maturities and
long-term debt:
Additions 38,982 16,005 240,544 201,997
Reductions (73,569) (23,953) (274,153) (164,475)
Purchase of
noncontrolling
interests (1,197) -- (1,197) --
Contributions from
noncontrolling
interests -- -- 874 1,654
Dividends paid to
noncontrolling
interests (1,131) (5) (17,095) (5)
Stock-based
compensation -
Employee taxes
paid (339) (52) (1,885) (1,426)
Deferred financing
costs (525) -- (4,290) --
Net cash (used)
provided by
financing
activities (40,995) (5,174) (63,400) 44,772
------- ------- -------- --------
Effect of exchange
rate changes on
cash and cash
equivalents,
including
restricted cash (6,437) 1,116 (15,046) (3,115)
------- ------- -------- --------
Net increase
(decrease) in cash
and cash
equivalents,
including
restricted cash (22,974) 25,927 (34,456) 39,520
Cash and cash
equivalents,
including
restricted cash, at
beginning of
period 113,132 98,687 124,614 85,094
------- ------- -------- --------
Cash and cash
equivalents,
including
restricted cash, at
end of period $ 90,158 $124,614 $ 90,158 $ 124,614
======= ======= ======== ========
ENVIRI CORPORATION
REVIEW OF OPERATIONS BY SEGMENT (Unaudited)
Three Months Ended
December 31, 2024 December 31, 2023
--------------------- -----------------------
Operating Operating
Income Income
(In thousands) Revenues (Loss) Revenues (Loss)
-------------------- ---------- --------- ---------- -----------
Harsco
Environmental $ 240,316 $(41,042) $ 292,245 $ 24,750
Clean Earth 240,919 20,848 236,571 15,972
Harsco Rail 77,473 (31,781) 70,515 (41,941)
Corporate -- (10,720) -- (13,205)
--------- ------- --------- -------
Consolidated
Totals $ 558,708 $(62,695) $ 599,331 $(14,424)
========= ======= ========= =======
Twelve Months Ended
December 31, 2024 December 31, 2023
--------------------- -----------------------
Operating Operating
Income Income
(In thousands) Revenues (Loss) Revenues (Loss)
-------------------- ---------- --------- ---------- -----------
Harsco
Environmental $1,111,512 $ 32,013 $1,140,904 $ 77,635
Clean Earth 939,845 92,156 928,321 76,974
Harsco Rail 291,288 (58,032) 296,795 (31,671)
Corporate -- (34,392) -- (43,000)
--------- ------- --------- -------
Consolidated
Totals $2,342,645 $ 31,745 $2,366,020 $ 79,938
========= ======= ========= =======
ENVIRI 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 Twelve Months
Ended Ended
December 31 December 31
---------------- ----------------
2024 2023 2024 2023
----- -----
Diluted earnings
(loss) per share
from continuing
operations, as
reported $(1.03) $(0.67) $(1.55) $(1.03)
Corporate
strategic costs
(a) 0.02 0.02 0.05 0.08
Corporate
contingent
consideration
adjustment (b) -- -- -- (0.01)
Corporate gain on
note receivable
(c) -- -- (0.03) --
Harsco
Environmental
segment net gain
on lease
incentive (d) -- 0.02 (0.01) (0.10)
Harsco
Environmental
segment change in
provision for
expected credit
losses (e) -- -- -- 0.07
Harsco
Environmental
segment contract
termination
charge (f) 0.06 -- 0.06 --
Harsco
Environmental
segment charge
for environmental
matter (g) 0.34 -- 0.34 --
Harsco Rail
segment
remeasurement of
long-lived assets
(h) -- -- 0.13 --
Harsco Rail
segment provision
for forward
losses and other
contract-related
costs on certain
contracts (i) 0.16 0.59 0.41 0.54
Harsco Rail
segment change in
inventory
provision (j) 0.06 -- 0.06 --
Total segment net
gain on sale of
businesses,
including
Corporate (k) -- -- (0.13) --
Total segment net
gain on sale of
assets, including
Corporate (l) -- (0.03) (0.04) (0.03)
Total segment
severance costs
(m) -- -- -- 0.01
Total segment
plant, property
and equipment
charge, net (n) 0.32 -- 0.32 0.10
Total segment
goodwill and
other intangible
asset impairment
charge (o) 0.16 -- 0.20 --
(MORE TO FOLLOW) Dow Jones Newswires
February 20, 2025 07:00 ET (12:00 GMT)