NYSE$NVRI

Harsco Corp · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Harsco reported mixed results for Q1 2020, with revenue up but GAAP operating income and EPS down year-over-year, while adjusted EBITDA exceeded prior guidance due to strong performance in Clean Earth and Rail.

Harsco Corporation reported Q1 2020 results with revenues increasing by 21% to $399 million, driven by the Rail segment and the Clean Earth acquisition. GAAP operating income decreased to $3 million from $20 million year-over-year, and the diluted loss per share was $0.11. However, adjusted EBITDA was $57 million, exceeding prior guidance.

  • Q1 GAAP Operating Income was $3 million.
  • Adjusted EBITDA totaled $57 million, surpassing prior guidance due to robust performance in Clean Earth and Rail, alongside reduced corporate spending.
  • The purchase of ESOL was completed, furthering the company's transformation into an environmental solutions provider.
  • Harsco Rail's SCOR program (Supply Chain Operations Recovery) is yielding positive outcomes.

Headline financials

Total Revenue

$399M

Previous: $447M-10.8%
EPS (adj)

$0.16

Previous: $0.29-44.8%
Adjusted EBITDA Margin

14.4%

Previous: 16.3%-11.7%
Capital Expenditures

-$27.9M

Previous: -$36.4M+23.4%
Free Cash Flow

-$27.8M

Previous: -$15.7M-76.7%
Net Income

$141K

Previous: $20.7M-99.3%
Operating Income

$2.88M

Previous: $38.2M-92.5%
Gross Profit

$397M

Previous: $445M-10.9%
Cash & Equivalents

$66.5M

Previous: $84.7M-21.5%
Total Assets

$2.35B

Previous: $1.74B+35.1%

Revenue & EPS history

Harsco · Revenue · Quarterly

$399M

Q1 2020-10.8%vs Q1 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Harsco · $399M total across 3 segments · Q1 2020

  • Harsco Environmental
    $242M-7.6%
  • Clean Earth
    $78.8M
  • Harsco Rail
    $78.5M+14.4%

Forward guidance

Harsco has suspended detailed guidance for the time being due to uncertainty related to the COVID-19 pandemic and its impact on relevant markets.

Tailwinds

  • Harsco is operating as an essential business in each of its segments in the United States and almost entirely around the world.
  • The Company has taken significant actions, as previously disclosed, to protect its stakeholders and minimize the operational and financial impacts of the pandemic on the business, while continuing to provide customers with essential products and services.
  • Harsco has implemented work safety and flexibility measures to keep employees and customers healthy, as facilities remain operational.
  • Harsco has also taken measures to adjust its cost structure and reduce capital expenditures, with the goal of improving free cash flow for the year and preserving its financial flexibility and strong liquidity position.
  • The Company intends to lower 2020 capital spending by approximately $75 million.

Headwinds

  • Sluggish customer demand and business disruptions are expected to persist for some time.
  • The extent and duration of these impacts cannot be quantified at this time.
  • Underlying business conditions currently vary across markets.
  • Uncertainty around the pandemic and its evolving impact on relevant markets.
  • Harsco will provide formal guidance when visibility improves, and it deems appropriate.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-1.2%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+4.9%

Avg return

30 days after

46%

31 / 68 earnings

Positive

+25.1%

Q1 2023

Best reaction

-39.1%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.0%+0.7%
Q4 2025-6.2%-0.9%-2.2%
Q3 2025+3.9%+9.8%+48.5%
Q1 2025+1.5%+1.3%+18.6%
Q4 2024-13.4%-19.1%-22.7%
Q3 2024-23.7%-31.5%-26.3%
Q2 2024+5.2%-6.2%+1.1%
Q1 2024-13.2%-2.2%+8.9%
Q4 2023-1.5%-0.4%+14.7%
Q3 2023+9.8%+1.5%+9.1%
Q2 2023-11.2%-19.9%-20.9%
Q1 2023+25.1%+39.9%+34.5%
Q4 2022+5.0%+3.8%-18.0%
Q3 2022+4.2%+14.6%+40.8%
Q2 2022+14.0%+33.1%+11.0%
Q1 2022-12.1%-18.4%-19.1%
Q4 2021-25.2%-22.8%-21.1%
Q3 2021-23.1%-15.0%-15.2%
Q2 2021-5.6%-6.4%-8.1%
Q1 2021+10.7%+19.8%+20.9%
Q4 2020-24.2%-21.2%-21.1%
Q3 2020-4.8%-4.8%+34.5%
Q2 2020-8.7%+2.1%-13.6%
Q1 2020+11.4%-4.6%+64.0%
Q4 2019-9.0%-23.5%-59.6%
Q3 2019+0.0%+2.8%+8.5%
Q2 2019-16.6%-19.4%-28.9%
Q1 2019+21.9%+18.1%+22.4%
Q4 2018+5.5%-0.1%-8.8%
Q3 2018+8.6%+16.7%+10.0%
Q2 2018-1.4%+2.6%+11.0%
Q1 2018+10.6%+8.9%+24.4%
Q4 2017+20.0%+25.7%+28.1%
Q3 2017-9.9%-17.6%-13.5%
Q2 2017+7.7%+11.3%+12.2%
Q1 2017+14.7%+18.1%+20.5%
Q4 2016+5.1%+6.6%-10.6%
Q3 2016+8.1%+15.6%+50.0%
Q2 2016+10.3%+9.5%+3.0%
Q1 2016-0.7%
Q4 2015-39.1%
Q3 2015-3.4%
Q2 2015-12.2%
Q1 2015+0.7%
Q4 2014-5.6%
Q3 2014-2.3%
Q2 2014-6.4%
Q1 2014+4.2%
Q4 2013+1.8%
Q3 2013-0.9%
Q2 2013-5.7%
Q1 2013+0.6%
Q4 2012-3.4%
Q3 2012-0.5%
Q2 2012-1.4%
Q1 2012+1.0%
Q4 2011-1.5%
Q3 2011+6.9%
Q2 2011-8.8%
Q1 2010-0.9%
Q1 2011-0.3%
Q4 2008+1.9%
Q4 2010+1.9%
Q3 2009+4.9%
Q3 2010+4.9%
Q2 2010-2.1%
Q4 2009-2.1%
Q2 2009-2.1%

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