NYSE$NVRI

Harsco Corp · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported fourth quarter and full year 2020 results, with adjusted EPS of $0.12 and adjusted EBITDA of $62 million, marking an increase from the sequential and prior-year quarters.

Harsco Corporation reported a GAAP operating income of $11 million and a GAAP diluted loss per share of $0.07 for the fourth quarter of 2020. Adjusted earnings per share were $0.12, and adjusted EBITDA totaled $62 million, exceeding the company's guidance range. The company is optimistic about improved operating results across all business segments in 2021.

  • Fourth Quarter GAAP Operating Income was $11 Million and GAAP Diluted Loss Per Share was $0.07, including unusual items.
  • Q4 Adjusted Earnings Per Share was $0.12.
  • Adjusted Q4 EBITDA totaled $62 Million, an increase compared with both the sequential and prior-year quarters.
  • Full Year 2020 GAAP Operating Income was $21 Million, Adjusted EBITDA was $238 Million, and GAAP Diluted Loss Per Share was $0.41.

Headline financials

Total Revenue

$508M

Previous: $400M+27.2%
EPS (adj)

$0.12

Previous: $0.12+0.0%
Capital Expenditures

$41.1M

Previous: $37.9M+8.5%
Free Cash Flow

-$29.6M

Previous: -$88.1M+66.4%
Net Income

-$5.41M

Previous: $40.9M-113.2%
Operating Income

$11M

Previous: $20M-45.0%
Gross Profit

$100M

Previous: $84.4M+18.9%
Cash & Equivalents

$76.5M

Previous: $57.3M+33.5%
Total Assets

$2.99B

Previous: $2.37B+26.4%

Revenue & EPS history

Harsco · Revenue · Quarterly

$508M

Q4 2020+27.2%vs Q4 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Harsco · $508M total across 3 segments · Q4 2020

  • Harsco Environmental
    $246M+1.3%
  • Clean Earth
    $185M+126.1%
  • Harsco Rail
    $76.9M+3.0%

Forward guidance

The Company's 2021 guidance anticipates that each of its three business segments will realize earnings improvement during the year.

Tailwinds

  • Strong backlog positions that provide forward visibility
  • Anticipated benefits from the Company's key business initiatives including the ESOL integration
  • Improving fundamentals in relevant end markets
  • Environmental adjusted EBITDA is expected to increase due to higher services and applied products demand and benefits of growth initiatives, partially offset by higher SG&A spending.
  • Clean Earth adjusted EBITDA is projected to increase due to the full-year impact of ESOL ownership, underlying organic growth for hazardous material services and integration benefits, partially offset by an additional allocation of Corporate costs and investments which include various one-time expenditures (such as rebranding and IT integration).

Headwinds

  • Rail adjusted EBITDA is anticipated to increase as a result of higher demand for equipment and technology products as well as higher contract services contributions, partially offset by R&D and SG&A investments and lower aftermarket parts contributions.
  • Corporate spending is expected to range from $33 million to $34 million for the year.
  • Net Interest Expense $63 - $66 million
  • Net Capital Expenditures $155 - $175 million
  • Effective Tax Rate, Excluding Any Unusual Items 36 - 38%

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 Q4 2020

Historical avgQ4 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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