NYSE$NVRI

Harsco Corp · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Reported a GAAP loss of $10 Million or $0.14 Per Share; Adjusted Earnings Per Share of $0.13; Adjusted EBITDA Totaled $59 Million; Net Cash Provided by Operating Activities of $33 Million; Free Cash Flow Totaled $18 Million.

Harsco Corporation reported a GAAP loss of $10 million, or $0.14 per share, for the second quarter of 2020. However, adjusted earnings per share were $0.13. The company's adjusted EBITDA totaled $59 million. Net cash provided by operating activities was $33 million, and free cash flow totaled $18 million.

  • Second Quarter GAAP Loss of $10 Million or $0.14 Per Share Including Anticipated Acquisition, Integration and Financing Costs; Adjusted Earnings Per Share of $0.13
  • Adjusted EBITDA Totaled $59 Million, Highlighting Positive Operational and Cost Performance While Facing COVID-19 Headwinds, as Well as Timing of Expenditures and Acquisition Contributions
  • Net Cash Provided by Operating Activities of $33 Million in Q2; Free Cash Flow Totaled $18 Million Driven by Actions to Lower Capital Spending as Well as Working Capital Initiatives
  • Company Net Leverage Ratio of 3.9x and Liquidity Position Exceeded $390 Million at Quarter-End

Headline financials

Total Revenue

$447M

Previous: $351M+27.5%
EPS (adj)

$0.13

Previous: $0.21-38.1%
Adjusted EBITDA

$59M

Previous: $63M-6.3%
Adjusted EBITDA Margin

13.2%

Previous: 18.0%-26.7%
Capital Expenditures

-$51.2M

Previous: -$91.2M+43.8%
Free Cash Flow

-$61.8M

Previous: -$82.6M+25.1%
Net Income

-$10.6M

Previous: $8.64M-222.7%
Operating Income

$1.87M

Previous: $17.8M-89.5%
Gross Profit

$445M

Previous: $349M+27.6%
Cash & Equivalents

$81.8M

Previous: $106M-22.9%
Total Assets

$2.93B

Previous: $2.53B+15.4%

Revenue & EPS history

Harsco · Revenue · Quarterly

$447M

Q2 2020+27.5%vs Q2 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Harsco · $487M total across 2 segments · Q3 2022

  • Harsco Environmental
    $265M-1.9%
  • Clean Earth
    $222M+10.8%

Forward guidance

Harsco anticipates that its revenues in the third quarter will increase relative to the second quarter of 2020. However, the Company believes that its third quarter adjusted EBITDA will be slightly below second quarter 2020 results.

Tailwinds

  • Revenues in the third quarter will increase relative to the second quarter of 2020.
  • Some modest improvement in end-markets during the third quarter

Headwinds

  • Third quarter adjusted EBITDA will be slightly below second quarter 2020 results.
  • Timing of certain expenditures which were less impactful on the Company's second quarter 2020 results.

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 Q2 2020

Historical avgQ2 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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