• Enviri Corporation Reports Third Quarter 2023 Results

    المصدر: Nasdaq GlobeNewswire / 02 نوفمبر 2023 07:00:01   America/New_York

    • Third Quarter Revenues from Continuing Operations Totaled $525 Million, an Increase of 8 Percent Over the Prior-Year Quarter
    • Q3 GAAP Operating Income from Continuing Operations of $30 Million
    • Adjusted EBITDA from Continuing Operations in Q3 Totaled $79 million, an Increase of 12 Percent Over the Prior-Year Quarter
    • Credit Agreement Net Leverage Ratio Declined Further, to 4.5x at Quarter-End
    • Full Year 2023 Adjusted EBITDA Guidance Range Increased to Between $282 Million and $289 Million; From Prior Range of $270 Million to $285 Million

    PHILADELPHIA, Nov. 02, 2023 (GLOBE NEWSWIRE) -- Enviri Corporation (NYSE: NVRI) today reported third quarter 2023 results. On a U.S. GAAP ("GAAP") basis, the third quarter of 2023 diluted loss per share from continuing operations was $0.11, after strategic expenses, an accounts receivable provision (linked to an idled steel mill) and other unusual items. Adjusted diluted earnings per share from continuing operations in the third quarter of 2023 was $0.05. These figures compare with third quarter of 2022 GAAP diluted earnings per share from continuing operations of $0.01 and adjusted diluted earnings per share from continuing operations of $0.10.

    GAAP operating income from continuing operations for the third quarter of 2023 was $30 million. Adjusted EBITDA was $79 million in the quarter, compared to the Company's previously provided guidance range of $67 million to $74 million.

    “Enviri again delivered strong results in the third quarter, with both Clean Earth and Harsco Environmental realizing meaningful year-on-year earnings growth thanks to solid execution across the Company,” said Enviri Chairman and CEO Nick Grasberger. “Our adjusted EBITDA margin in the third quarter was the highest since early 2020, reflecting strong operational and cost performance, successful improvement initiatives, and the continued recognition of our value-proposition by customers. We also made further progress on our ongoing objective to reduce leverage, supported by healthy cash flow generated by CE and HE.

    "Looking ahead, our outlook for Q4 is positive and we’re optimistic about further business growth into 2024. Our competitive position is strong and internal initiatives will continue to further solidify our strong foundation. Lastly, the sale process for our Rail business is ongoing, and we are confident that an agreement will be signed in the coming months.”

    Enviri Corporation—Selected Third Quarter Results

    ($ in millions, except per share amounts) Q3 2023 Q3 2022
    Revenues $525  $487 
    Operating income/(loss) from continuing operations - GAAP $30  $30 
    Diluted EPS from continuing operations - GAAP $(0.11) $0.01 
    Adjusted EBITDA - Non GAAP $79  $70 
    Adjusted EBITDA margin - Non GAAP  15.1%  14.4%
    Adjusted diluted EPS from continuing operations - Non GAAP $0.05  $0.10 
    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.
     

    Consolidated Third Quarter Operating Results

    Consolidated revenues from continuing operations were $525 million, an increase of 8 percent compared with the prior-year quarter. Both Harsco Environmental and Clean Earth realized an increase in revenues compared to the third quarter of 2022 due to higher services pricing and demand. Foreign currency translation positively impacted third quarter 2023 revenues by approximately $5 million (1 percent), compared with the prior-year period.

    The Company's GAAP operating income from continuing operations was $30 million for the third quarter of 2023, compared with a GAAP operating income of $30 million in the same quarter of 2022. Meanwhile, adjusted EBITDA totaled $79 million in the third quarter of 2023 versus $70 million in the third quarter of the prior year. Both Harsco Environmental and Clean Earth achieved higher adjusted EBITDA versus the comparable quarter of 2022.

    Third Quarter Business Review

    Harsco Environmental

    ($ in millions) Q3 2023 Q3 2022
    Revenues $286  $265 
    Operating income - GAAP $18  $22 
    Adjusted EBITDA - Non GAAP $54  $51 
    Adjusted EBITDA margin - Non GAAP  18.9%  19.1%


    Harsco Environmental revenues totaled $286 million in the third quarter of 2023, an increase of 8 percent compared with the prior-year quarter. This increase is attributable to higher services and products demand and price increases as well as the impact of FX translation. The segment's GAAP operating income and adjusted EBITDA totaled $18 million and $54 million, respectively, in the third quarter of 2023. These figures compare with GAAP operating income of $22 million and adjusted EBITDA of $51 million in the prior-year period. The year-on-year change in adjusted earnings reflects the impact of higher prices and demand as well as cost improvement initiatives.

    Clean Earth

    ($ in millions) Q3 2023 Q3 2022
    Revenues $239  $222 
    Operating income (loss) - GAAP $21  $17 
    Adjusted EBITDA - Non GAAP $34  $28 
    Adjusted EBITDA margin - Non GAAP  14.2%  12.7%


    Clean Earth revenues totaled $239 million in the third quarter of 2023, a 7 percent increase over the prior-year quarter as a result of higher services pricing and increased volumes. The segment's GAAP operating income was $21 million and adjusted EBITDA was $34 million in the third quarter of 2023. These figures compare with GAAP operating income of $17 million and adjusted EBITDA of $28 million in the prior-year period. The year-on-year improvement in adjusted earnings reflects the above mentioned factors as well as efficiency initiatives, cost decreases and favorable business mix. As a result, Clean Earth's adjusted EBITDA margin increased to 14.2 percent in the third quarter of 2023 versus 12.7 percent in the comparable quarter of 2022.

    Cash Flow

    Net cash provided by operating activities was $18 million in the third quarter of 2023, compared with net cash provided by operating activities of $13 million in the prior-year period. Free cash flow (excluding Rail) was $10 million in the third quarter of 2023, compared with $(31) million in the prior-year period. The change in free cash flow compared with the prior-year quarter is attributable to higher cash earnings, working capital changes (net of the accounts receivable securitization benefit of $25 million in the prior-year quarter) and lower net capital spending.

    2023 Outlook

    The Company has again increased its 2023 guidance for Adjusted EBITDA, reflecting the Company's positive third quarter performance and business momentum. In total, this change relative to the Company's prior outlook can be attributed to improved volumes and margin performance in Clean Earth as well as modestly lower Corporate spending.

    For the full year 2023, key business drivers for each segment as well as other guidance details are as follows:

    Harsco Environmental adjusted EBITDA is projected to be modestly above prior-year results. For the year, higher services pricing, restructuring benefits, site improvement initiatives and new contracts are expected to be partially offset by FX translation impacts and lower commodity prices.

    Clean Earth adjusted EBITDA is expected to significantly increase versus 2022, as a result of higher services pricing and volumes as well as cost reduction and operational improvement actions, offsetting the impacts of continued labor-market and supply-chain (disposal) tightness.

    Corporate spending is anticipated to be higher relative to the prior year due to the normalization of certain expenditures, including travel and higher planned incentive compensation.

    2023 Full Year Outlook
    (Continuing Operations)    		CurrentPrior
    GAAP Operating Income/(Loss)$103 - $110 million$97 - $112 million
    Adjusted EBITDA$282 - $289 million$270 - $285 million
    GAAP Diluted Earnings/(Loss) Per Share from Continuing Operations$(0.50) - $(0.59)$(0.42) - $(0.58)
    Adjusted Diluted Earnings/(Loss) Per Share from Continuing Operations$(0.08) - $(0.17)$(0.09) - $(0.25)
    Free Cash Flow$25 - $35 million$30 - $50 million
    Net Interest Expense$97 million$94 - $95 million
    Account Receivable Securitization Fees$11 million$10 million
    Pension Expense (Non-Operating)$22 million$21 - $22 million
    Tax Expense, Excluding Any Unusual Items$16 - $17 million$13 - $17 million
    Net Capital Expenditures$125 - $135 million$125 - $135 million
       
    Q4 2023 Outlook (Continuing Operations)  
    GAAP Operating Income$20 - $27 million 
    Adjusted EBITDA$62 - $69 million 
    GAAP Diluted Earnings/(Loss) Per Share from Continuing Operations$(0.10) - $(0.19) 
    Adjusted Diluted Earnings/(Loss) Per Share from Continuing Operations$(0.03) - $(0.12) 


    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 the Investor Relations section of the Company’s website at www.enviri.com. The live call also can be accessed by dialing (833) 630-1956, or (412) 317-1837 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" 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) changes in the worldwide business environment in which the Company operates, including changes in general economic conditions or health conditions; (2) changes in currency exchange rates, interest rates, commodity and fuel costs and capital costs; (3) 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; (4) changes in governmental laws and regulations, including environmental, occupational health and safety, tax and import tariff standards and amounts; (5) market and competitive changes, including pricing pressures, market demand and acceptance for new products, services and technologies; (6) 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; (7) failure to effectively prevent, detect or recover from breaches in the Company's cybersecurity infrastructure; (8) unforeseen business disruptions in one or more of the many countries in which the Company operates due to political instability, civil disobedience, armed hostilities, public health issues or other calamities; (9) disruptions associated with labor disputes and increased operating costs associated with union organization; (10) the seasonal nature of the Company's business; (11) the Company's ability to successfully enter into new contracts and complete new acquisitions or strategic ventures in the time-frame contemplated, or at all; (12) the Company's ability to negotiate, complete, and integrate strategic transactions; (13) failure to complete a process for the divestiture of the Rail segment on satisfactory terms, or at all; (14) potential severe volatility in the capital or commodity markets; (15) failure to retain key management and employees; (16) the outcome of any disputes with customers, contractors and subcontractors; (17) 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; (18) implementation of environmental remediation matters; (19) risk and uncertainty associated with intangible assets; (20) the risk that the Company may be unable to implement fully and successfully the expected incremental actions at the Clean Earth segment due to market conditions or otherwise and may fail to deliver the expected resulting benefits; and (21) 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 II, Item 1A, "Risk Factors," of the Company's Quarterly Report on Form 10-Q for the period ended June 30, 2023, and Part I, Item 1A, "Risk Factors," of the Company's Annual Report on Form 10-K for the year ended December 31, 2022, 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.

    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.

    Free cash flow: 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 Free cash flow is meaningful to investors because management reviews Free cash flow for planning and performance evaluation purposes. It is important to note that 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. Free cash flow excludes the former Harsco Rail Segment since the segment is reported as discontinued operations. This presentation provides a basis for comparison of ongoing operations and prospects.

    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 Nine Months Ended 
      September 30 September 30 
    (In thousands, except per share amounts)  2023   2022   2023   2022  
    Revenues from continuing operations:         
    Revenues $524,588  $486,914  $1,540,409  $1,420,763  
    Costs and expenses from continuing operations:         
    Cost of sales  408,743   392,803   1,216,058   1,173,021  
    Selling, general and administrative expenses  84,389   64,146   233,174   201,234  
    Research and development expenses  271   193   947   545  
    Goodwill impairment charge  —   —   —   104,580  
    Property, plant and equipment impairment charge  —   —   14,099   —  
    Other expense (income), net  1,410   (351)  (6,964)  515  
    Total costs and expenses  494,813   456,791   1,457,314   1,479,895  
    Operating income (loss) from continuing operations  29,775   30,123   83,095   (59,132) 
    Interest income  1,679   952   4,701   2,289  
    Interest expense  (26,739)  (19,751)  (76,791)  (51,535) 
    Facility fees and debt-related income (expense)  (2,806)  (2,511)  (7,899)  (894) 
    Defined benefit pension income (expense)  (5,436)  2,118   (16,178)  6,775  
    Income (loss) from continuing operations before income taxes and equity income  (3,527)  10,931   (13,072)  (102,497) 
    Income tax benefit (expense) from continuing operations  (4,109)  (9,376)  (21,351)  (7,482) 
    Equity income (loss) of unconsolidated entities, net  (151)  (128)  (593)  (373) 
    Income (loss) from continuing operations  (7,787)  1,427   (35,016)  (110,352) 
    Discontinued operations:         
    Income (loss) from discontinued businesses  (3,317)  1,993   4,858   (35,225) 
    Income tax benefit (expense) from discontinued businesses  1,010   (539)  (4,364)  5,282  
    Income (loss) from discontinued operations, net of tax  (2,307)  1,454   494   (29,943) 
    Net income (loss)  (10,094)  2,881   (34,522)  (140,295) 
    Less: Net loss (income) attributable to noncontrolling interests  (708)  (802)  2,756   (3,056) 
    Net income (loss) attributable to Enviri Corporation $(10,802) $2,079  $(31,766) $(143,351) 
    Amounts attributable to Enviri Corporation common stockholders:         
    Income (loss) from continuing operations, net of tax $(8,495) $625  $(32,260) $(113,408) 
    Income (loss) from discontinued operations, net of tax  (2,307)  1,454   494   (29,943) 
    Net income (loss) attributable to Enviri Corporation common stockholders $(10,802) $2,079  $(31,766) $(143,351) 
              
    Weighted-average shares of common stock outstanding  79,850   79,531   79,767   79,469  
    Basic earnings (loss) per common share attributable to Enviri Corporation common stockholders: 
    Continuing operations $(0.11) $0.01  $(0.40) $(1.43) 
    Discontinued operations $(0.03) $0.02  $0.01  $(0.38) 
    Basic earnings (loss) per share attributable to Enviri Corporation common stockholders $(0.14) $0.03  $(0.40)(a)$(1.80)(a)
              
    Diluted weighted-average shares of common stock outstanding  79,850   79,567   79,767   79,469  
    Diluted earnings (loss) per common share attributable to Enviri Corporation common stockholders: 
    Continuing operations $(0.11) $0.01  $(0.40) $(1.43) 
    Discontinued operations $(0.03) $0.02  $0.01  $(0.38) 
    Diluted earnings (loss) per share attributable to Enviri Corporation common stockholders $(0.14) $0.03  $(0.40)(a)$(1.80)(a)
    1. Does not total due to rounding



    ENVIRI CORPORATION
    CONSOLIDATED BALANCE SHEETS    		    

    (In thousands)    		 September 30
    2023    		 December 31
    2022
    ASSETS    
    Current assets:    
    Cash and cash equivalents $95,592  $81,332 
    Restricted cash  3,095   3,762 
    Trade accounts receivable, net  288,030   264,428 
    Other receivables  29,557   25,379 
    Inventories  84,569   81,375 
    Prepaid expenses  33,941   30,583 
    Current portion of assets held-for-sale  268,993   266,335 
    Other current assets  27,620   14,541 
    Total current assets  831,397   767,735 
    Property, plant and equipment, net  641,434   656,875 
    Right-of-use assets, net  98,624   101,253 
    Goodwill  759,027   759,253 
    Intangible assets, net  331,246   352,160 
    Deferred income tax assets  14,784   17,489 
    Assets held-for-sale  89,986   70,105 
    Other assets  70,937   65,984 
    Total assets $2,837,435  $2,790,854 
    LIABILITIES    
    Current liabilities:    
    Short-term borrowings $14,006  $7,751 
    Current maturities of long-term debt  14,990   11,994 
    Accounts payable  202,067   205,577 
    Accrued compensation  59,224   43,595 
    Income taxes payable  7,654   3,640 
    Current portion of operating lease liabilities  25,434   25,521 
    Current portion of liabilities of assets held-for-sale  139,219   159,004 
    Other current liabilities  130,295   140,199 
    Total current liabilities  592,889   597,281 
    Long-term debt  1,400,428   1,336,995 
    Retirement plan liabilities  48,593   46,601 
    Operating lease liabilities  74,305   75,246 
    Liabilities of assets held-for-sale  4,400   9,463 
    Environmental liabilities  25,309   26,880 
    Deferred tax liabilities  31,349   30,069 
    Other liabilities  46,397   45,277 
    Total liabilities  2,223,670   2,167,812 
    ENVIRI CORPORATION STOCKHOLDERS’ EQUITY    
    Common stock  146,079   145,448 
    Additional paid-in capital  235,245   225,759 
    Accumulated other comprehensive loss  (550,334)  (567,636)
    Retained earnings  1,582,675   1,614,441 
    Treasury stock  (849,944)  (848,570)
    Total Enviri Corporation stockholders’ equity  563,721   569,442 
    Noncontrolling interests  50,044   53,600 
    Total equity  613,765   623,042 
    Total liabilities and equity $2,837,435  $2,790,854 



    ENVIRI CORPORATION
    CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
      Three Months Ended
    September 30    		 Nine Months Ended
    September 30
    (In thousands)  2023   2022   2023   2022 
    Cash flows from operating activities:        
    Net income (loss) $(10,094) $2,881  $(34,522) $(140,295)
    Adjustments to reconcile net income (loss) to net cash provided by operating activities:
    Depreciation  35,397   31,892   102,893   97,959 
    Amortization  8,295   8,538   24,327   25,605 
    Deferred income tax (benefit) expense  (5,424)  (1,660)  2,198   (12,056)
    Equity (income) loss of unconsolidated entities, net  151   128   593   373 
    Dividends from unconsolidated entities  —   —   —   526 
    (Gain) loss on early extinguishment of debt  —   —   —   (2,254)
    Goodwill impairment charge  —   —   —   104,580 
    Property, plant and equipment impairment charge  —   —   14,099   — 
    Other, net  597   (639)  4,743   381 
    Changes in assets and liabilities, net of acquisitions and dispositions of businesses:        
    Accounts receivable  8,217   (12,613)  (48,166)  74,994 
    Income tax refunds receivable, reimbursable to seller  —   —   —   7,687 
    Inventories  (2,596)  (2,904)  (10,548)  (11,339)
    Contract assets  4,852   1,753   1,317   9,589 
    Right-of-use assets  8,256   7,446   24,467   21,829 
    Accounts payable  (13,778)  (5,817)  (818)  13,030 
    Accrued interest payable  (6,636)  (6,819)  (6,828)  (7,559)
    Accrued compensation  11,242   325   20,436   (5,559)
    Advances on contracts  (8,846)  7,639   (21,824)  (5,987)
    Operating lease liabilities  (8,190)  (7,403)  (22,980)  (21,498)
    Retirement plan liabilities, net  606   (6,242)  (4,862)  (27,829)
    Other assets and liabilities  (4,067)  (3,083)  1,647   8,984 
    Net cash provided (used) by operating activities  17,982   13,422   46,172   131,161 
    Cash flows from investing activities:        
    Purchases of property, plant and equipment  (27,289)  (39,854)  (93,630)  (101,645)
    Proceeds from sales of assets  641   1,698   2,080   8,289 
    Expenditures for intangible assets  (51)  (47)  (478)  (147)
    Proceeds from note receivable  —   —   11,238   8,605 
    Net proceeds (payments) from settlement of foreign currency forward exchange contracts  4,442   8,572   2,034   13,571 
    Payments for settlements of interest rate swaps  —   (463)  —   (2,586)
    Other investing activities, net  378   67   462   220 
    Net cash used by investing activities  (21,879)  (30,027)  (78,294)  (73,693)
    Cash flows from financing activities:        
    Short-term borrowings, net  3,595   308   4,196   277 
    Current maturities and long-term debt:        
    Additions  61,996   54,468   185,992   159,429 
    Reductions  (49,795)  (45,970)  (140,522)  (198,831)
    Contributions from noncontrolling interests  —   —   1,654   — 
    Dividends paid to noncontrolling interests  —   (4,841)  —   (4,841)
    Sale of noncontrolling interests  —   —   —   1,901 
    Stock-based compensation - Employee taxes paid  (136)  (119)  (1,374)  (1,817)
    Payment of contingent consideration  —   —   —   (6,915)
    Net cash (used) provided by financing activities  15,660   3,846   49,946   (50,797)
    Effect of exchange rate changes on cash and cash equivalents, including restricted cash  (2,442)  (3,011)  (4,231)  (8,762)
    Net increase (decrease) in cash and cash equivalents, including restricted cash  9,321   (15,770)  13,593   (2,091)
    Cash and cash equivalents, including restricted cash, at beginning of period  89,366   100,807   85,094   87,128 
    Cash and cash equivalents, including restricted cash, at end of period $98,687  $85,037  $98,687  $85,037 



    ENVIRI CORPORATION
    REVIEW OF OPERATIONS BY SEGMENT (Unaudited)
      Three Months Ended Three Months Ended
      September 30, 2023 September 30, 2022
    (In thousands) Revenues Operating
    Income (Loss)    		 Revenues Operating Income (Loss)
    Harsco Environmental $285,877 $17,867  $264,717 $22,117 
    Clean Earth  238,711  21,497   222,197  17,315 
    Corporate  —  (9,589)  —  (9,309)
    Consolidated Totals $524,588 $29,775  $486,914 $30,123 
             
      Nine Months Ended Nine Months Ended
      September 30, 2023 September 30, 2022
    (In thousands) Revenues Operating
    Income (Loss)    		 Revenues Operating Income (Loss)
    Harsco Environmental $848,659 $52,885  $804,367 $63,931 
    Clean Earth  691,750  61,002   616,396  (95,650)
    Corporate  —  (30,792)  —  (27,413)
    Consolidated Totals $1,540,409 $83,095  $1,420,763 $(59,132)



    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 Ended Nine Months Ended
      September 30 September 30
       2023   2022   2023   2022 
    Diluted earnings (loss) per share from continuing operations, as reported $(0.11) $0.01  $(0.40) $(1.43)
    Facility fees and debt-related expense (income) (a)  —   0.01   —   (0.01)
    Corporate strategic costs (b)  0.01   —   0.03   — 
    Corporate contingent consideration adjustment (c)  (0.01)  —   (0.01)  — 
    Harsco Environmental segment severance costs (d)  0.01   —   0.01   — 
    Harsco Environmental net gain on lease incentive (e)  —   —   (0.12)  — 
    Harsco Environmental property, plant and equipment impairment charge, net of noncontrolling interest (f)  —   —   0.10   — 
    Harsco Environmental accounts receivable provision (g)  0.07   —   0.07   — 
    Clean Earth segment goodwill impairment charge (h)  —   —   —   1.32 
    Clean Earth segment severance costs (i)  —   0.01   —   0.03 
    Clean Earth segment contingent consideration adjustments (j)  —   (0.01)  —   (0.01)
    Taxes on above unusual items (k)  —   —   0.07   (0.04)
    Adjusted diluted earnings (loss) per share from continuing operations, including acquisition amortization expense  (0.02)(m) 0.02   (0.26)(m) (0.14)
    Acquisition amortization expense, net of tax (l)  0.07   0.08   0.21   0.23 
    Adjusted diluted earnings (loss) per share from continuing operations $0.05  $0.10  $(0.05) $0.09 
     
    1. Costs incurred at Corporate to amend the Company's Senior Secured Credit Facilities, partially offset by a gain on the repurchase of $25.0 million of Senior Notes (Q3 2022 $1.1 million pre-tax expense; nine months 2022 $0.5 million pre-tax income).
    2. Certain strategic costs incurred at Corporate associated with supporting and executing the Company's long-term strategies (Q3 2023 $1.0 million pre-tax expense; nine months ended 2023 $2.3 million pre-tax expense). 2022 included the relocation of the Company's headquarters, in addition to other certain strategic costs incurred at Corporate (Q3 2022 $0.3 million pre-tax expense; nine months 2022 $0.1 million pre-tax expense).
    3. Adjustment related to a previously recorded liability related to a contingent consideration from the Company's acquisition of Clean Earth (Q3 2023 and nine months ended 2023 $0.8 million pre-tax income).
    4. Severance and related costs incurred in the Harsco Environmental segment (Q3 2023 and nine months ended 2023 $1.1 million pre-tax expense).
    5. Net gain recognized for a lease modification that resulted in a lease incentive for the Company for a site relocation prior the end of the expected lease term (nine months ended 2023 $9.8 million pre-tax income).
    6. Non-cash property, plant and equipment impairment charge related to abandoned equipment at a Harsco Environmental site, net of noncontrolling interest impact (nine months ended 2023 net $7.9 million, which includes $14.1 million pre-tax expense, net of $6.2 million that represents the noncontrolling partner's share of the impairment charge).
    7. Accounts receivable provision related to a customer in the Middle East (Q3 2023 and nine months ended 2023 $5.3 million pre-tax expense).
    8. Non-cash goodwill impairment charge in the Clean Earth segment (nine months 2022 $104.6 million pre-tax expense).
    9. Severance and related costs incurred in the Clean Earth segment (Q3 2022 $1.1 million pre-tax expense; nine months 2022 $2.5 million pre-tax expense).
    10. Adjustment to a contingent consideration related to an acquisition in the Clean Earth segment (Q3 2022 and nine months 2022 $0.8 million pre-tax income).
    11. Unusual items are tax-effected at the global effective tax rate, before discrete items, in effect at the time the unusual item is recorded.
    12. Pre-tax acquisition amortization expense was $7.4 million and $7.7 million in Q3 2023 and 2022, respectively, and after-tax was $5.7 million and $6.0 million in Q3 2023 and 2022, respectively. Pre-tax acquisition amortization expense was $21.5 million and $23.4 million for the nine months ended 2023 and 2022, respectively, and after-tax was $16.6 million and $18.4 million for the nine months ended 2023 and 2022, respectively.
    13. Does not total due to rounding.


    ENVIRI CORPORATION
    RECONCILIATION OF PROJECTED ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE FROM CONTINUING OPERATIONS TO DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS (a) (Unaudited)
    		 
              
      Projected Projected 
      Three Months Ending Twelve Months Ending 
      December 31 December 31 
       2023   2023  
      Low High Low High 
    Diluted earnings (loss) per share from continuing operations $(0.19) $(0.10) $(0.59) $(0.50) 
    Corporate strategic costs  —   —   0.03   0.03  
    Corporate contingent consideration adjustment  —   —   (0.01)  (0.01) 
    Harsco Environmental segment severance costs  —   —   0.01   0.01  
    Harsco Environmental segment net gain on lease incentive  —   —   (0.12)  (0.12) 
    Harsco Environmental property, plant and equipment impairment charge, net of noncontrolling interest  —   —   0.10   0.10  
    Harsco Environmental accounts receivable provision  —   —   0.07   0.07  
    Taxes on above unusual items  —   —   0.07   0.07  
    Adjusted diluted earnings (loss) per share from continuing operations, including acquisition amortization expense  (0.19)  (0.10)  (0.45)(b) (0.36)(b)
    Estimated acquisition amortization expense, net of tax  0.07   0.07   0.28   0.28  
    Adjusted diluted earnings (loss) per share from continuing operations $(0.12) $(0.03) $(0.17)(b)$(0.08) 
     
    1. Excludes Harsco Rail Segment.
    2. Does not total due to rounding.


    ENVIRI CORPORATION
    RECONCILIATION OF ADJUSTED EBITDA BY SEGMENT TO OPERATING INCOME (LOSS) AS REPORTED BY SEGMENT (Unaudited)

    (In thousands) Harsco
    Environmental    		 Clean Earth Corporate Consolidated
    Totals
             
    Three Months Ended September 30, 2023:      
    Operating income (loss), as reported $17,867  $21,497  $(9,589) $29,775 
    Corporate strategic costs  —   —   987   987 
    Corporate contingent consideration adjustment  —   —   (828)  (828)
    Harsco Environmental segment severance costs  1,146   —   —   1,146 
    Harsco Environmental accounts receivable provision  5,284   —   —   5,284 
    Operating income (loss) excluding unusual items  24,297   21,497   (9,430)  36,364 
    Depreciation  28,793   6,054   550   35,397 
    Amortization  1,013   6,330   —   7,343 
    Adjusted EBITDA $54,103  $33,881  $(8,880) $79,104 
    Revenues as reported $285,877  $238,711    $524,588 
    Adjusted EBITDA margin (%)  18.9%  14.2%    15.1%
             
    Three Months Ended September 30, 2022:      
    Operating income (loss), as reported $22,117  $17,315  $(9,309) $30,123 
    Corporate strategic costs  —   —   346   346 
    Clean Earth segment severance costs  —   1,092   —   1,092 
    Clean Earth contingent consideration adjustment  —   (827)  —   (827)
    Operating income (loss) excluding unusual items  22,117   17,580   (8,963)  30,734 
    Depreciation  26,772   4,576   544   31,892 
    Amortization  1,619   6,071   —   7,690 
    Adjusted EBITDA $50,508  $28,227  $(8,419) $70,316 
    Revenues as reported $264,717  $222,197    $486,914 
    Adjusted EBITDA margin (%)  19.1%  12.7%    14.4%



    ENVIRI CORPORATION
    RECONCILIATION OF ADJUSTED EBITDA BY SEGMENT TO OPERATING INCOME (LOSS) AS REPORTED BY SEGMENT (Unaudited)

    (In thousands) Harsco
    Environmental    		 Clean Earth Corporate Consolidated
    Totals
             
    Nine Months Ended September 30, 2023:        
    Operating income (loss), as reported $52,885  $61,002  $(30,792) $83,095 
    Corporate strategic costs  —   —   2,253   2,253 
    Corporate contingent consideration adjustment  —   —   (828)  (828)
    Harsco Environmental segment severance costs  1,146   —   —   1,146 
    Harsco Environmental segment net gain on lease incentive  (9,782)  —   —   (9,782)
    Harsco Environmental property, plant and equipment impairment charge  14,099   —   —   14,099 
    Harsco Environmental accounts receivable provision  5,284   —   —   5,284 
    Operating income (loss) excluding unusual items  63,632   61,002   (29,367)  95,267 
    Depreciation  84,707   16,528   1,658   102,893 
    Amortization  3,020   18,472   —   21,492 
    Adjusted EBITDA  151,359   96,002   (27,709)  219,652 
    Revenues as reported $848,659  $691,750    $1,540,409 
    Adjusted EBITDA margin (%)  17.8%  13.9%    14.3%
             
    Nine Months Ended September 30, 2022:      
    Operating income (loss), as reported $63,931  $(95,650) $(27,413) $(59,132)
    Corporate strategic costs  —   —   128   128 
    Clean Earth segment goodwill impairment charge  —   104,580   —   104,580 
    Clean Earth segment severance costs  —   2,540   —   2,540 
    Clean Earth segment contingent consideration adjustment  —   (827)  —   (827)
    Operating income (loss) excluding unusual items  63,931   10,643   (27,285)  47,289 
    Depreciation  82,311   14,213   1,435   97,959 
    Amortization  5,161   18,277   —   23,438 
    Adjusted EBITDA  151,403   43,133   (25,850)  168,686 
    Revenues as reported $804,367  $616,396    $1,420,763 
    Adjusted EBITDA margin (%)  18.8%  7.0%    11.9%



    ENVIRI CORPORATION
    RECONCILIATION OF CONSOLIDATED ADJUSTED EBITDA TO CONSOLIDATED INCOME (LOSS) FROM CONTINUING OPERATIONS AS REPORTED (Unaudited)

    		  
      Three Months Ended September 30
    (In thousands)  2023   2022 
    Consolidated income (loss) from continuing operations $(7,787) $1,427 
         
    Add back (deduct):    
    Equity in (income) loss of unconsolidated entities, net  151   128 
    Income tax (benefit) expense  4,109   9,376 
    Defined benefit pension expense (income)  5,436   (2,118)
    Facility fees and debt-related expense (income)  2,806   2,511 
    Interest expense  26,739   19,751 
    Interest income  (1,679)  (952)
    Depreciation  35,397   31,892 
    Amortization  7,343   7,690 
         
    Unusual items:    
    Corporate strategic costs  987   346 
    Corporate contingent consideration adjustment  (828)  — 
    Harsco Environmental segment severance costs  1,146   — 
    Harsco Environmental accounts receivable provision  5,284   — 
    Clean Earth segment severance costs  —   1,092 
    Clean Earth segment contingent consideration adjustment  —   (827)
    Consolidated Adjusted EBITDA $79,104  $70,316 



    ENVIRI CORPORATION
    RECONCILIATION OF ADJUSTED EBITDA TO CONSOLIDATED INCOME (LOSS) FROM CONTINUING OPERATIONS AS REPORTED (Unaudited)

    		  
      Nine Months Ended
    September 30
    (In thousands)  2023   2022 
    Consolidated income (loss) from continuing operations $(35,016) $(110,352)
         
    Add back (deduct):    
    Equity in (income) loss of unconsolidated entities, net  593   373 
    Income tax (benefit) expense  21,351   7,482 
    Defined benefit pension expense (income)  16,178   (6,775)
    Facility fee and debt-related expense  7,899   894 
    Interest expense  76,791   51,535 
    Interest income  (4,701)  (2,289)
    Depreciation  102,893   97,959 
    Amortization  21,492   23,438 
         
    Unusual items:    
    Corporate strategic costs  2,253   128 
    Corporate contingent consideration adjustment  (828)  — 
    Harsco Environmental segment severance costs  1,146   — 
    Harsco Environmental segment net gain on lease incentive  (9,782)  — 
    Harsco Environmental property, plant and equipment impairment charge  14,099   — 
    Harsco Environmental accounts receivable provision  5,284   — 
    Clean Earth segment goodwill impairment charge  —   104,580 
    Clean Earth segment severance costs  —   2,540 
    Clean Earth segment contingent consideration adjustments  —   (827)
    Adjusted EBITDA $219,652  $168,686 



    ENVIRI CORPORATION
    RECONCILIATION OF PROJECTED CONSOLIDATED ADJUSTED EBITDA TO PROJECTED CONSOLIDATED INCOME FROM CONTINUING OPERATIONS (a)
    (Unaudited)
    		 
      Projected Projected 
      Three Months Ending Twelve Months Ending 
      December 31 December 31 
       2023   2023  
    (In millions) Low High Low High 
    Consolidated loss from continuing operations $(15) $(7) $(49) $(41) 
              
    Add back (deduct):         
    Income tax (income) expense  1   2   22   23  
    Facility fees and debt-related (income) expense  3   3   11   10  
    Net interest  25   24   97   97  
    Defined benefit pension (income) expense  6   5   22   21  
    Depreciation and amortization  43   43   167   167  
              
    Unusual items:         
    Corporate strategic costs  —   —   2   2  
    Corporate contingent consideration adjustment  —   —   (1)  (1) 
    Harsco Environmental segment severance costs  —   —   1   1  
    Harsco Environmental net gain on lease incentive  —   —   (10)  (10) 
    Harsco Environmental property, plant and equipment impairment charge  —   —   14   14  
    Harsco Environmental accounts receivable provision  —   —   5   5  
    Consolidated Adjusted EBITDA $62 (b)$69 (b)$282 (b)$289 (b)
     
    1. Excludes former Harsco Rail Segment
    2. Does not total due to rounding.


    ENVIRI CORPORATION
    RECONCILIATION OF FREE CASH FLOW TO NET CASH PROVIDED BY OPERATING ACTIVITIES (Unaudited)
      Three Months Ended Nine Months Ended
      September 30 September 30
    (In thousands)  2023   2022   2023   2022 
    Net cash provided (used) by operating activities $17,982  $13,422  $46,172  $131,161 
    Less capital expenditures  (27,289)  (39,854)  (93,630)  (101,645)
    Less expenditures for intangible assets  (51)  (47)  (478)  (147)
    Plus capital expenditures for strategic ventures (a)  507   920   2,458   1,428 
    Plus total proceeds from sales of assets (b)  641   1,698   2,080   8,289 
    Plus transaction-related expenditures (c)  917   758   1,045   1,854 
    Harsco Rail free cash flow deficit/(benefit)  17,452   (8,161)  41,137   30,827 
    Free cash flow $10,159  $(31,264) $(1,216) $71,767 
     
    1. Capital expenditures for strategic ventures represent the partner’s share of capital expenditures in certain ventures consolidated in the Company’s condensed consolidated financial statements.
    2. Asset sales are a normal part of the business model, primarily for the Harsco Environmental segment.
    3. Expenditures directly related to the Company's divestiture transactions and other strategic costs incurred at Corporate.


    ENVIRI CORPORATION
    RECONCILIATION OF PROJECTED FREE CASH FLOW TO PROJECTED NET CASH PROVIDED BY OPERATING ACTIVITIES (a)(Unaudited)
      Projected
    Twelve Months Ending
    December 31
       2023 
    (In millions) Low High
    Net cash provided by operating activities $145  $165 
    Less net capital / intangible asset expenditures  (125)  (135)
    Plus capital expenditures for strategic ventures  4   4 
    Plus transaction-related expenditures  1   1 
    Free cash flow $25  $35 
     
    1. Excludes former Harsco Rail Segment


    Investor Contact 
    David Martin
    +1.267.946.1407
    dmartin@enviri.com    		Media Contact
    Jay Cooney
    +1.267.857.8017
    jcooney@enviri.com

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