Enviri Corporation Reports First Quarter 2025 Results
-- First quarter revenues totaled $548 million
-- GAAP consolidated loss from continuing operations of $11 million
-- Q1 diluted loss per share from continuing operations of $0.15, including
favorable impacts resulting from an amendment to a long-term engineered
to order contract in Harsco Rail
-- Adjusted EBITDA in Q1 totaled $67 million supported by record first
quarter performance at Clean Earth
-- Reaffirms 2025 Adjusted EBITDA guidance range at $305 million to $325
million and free cash flow outlook at range of $30 million to $50 million
PHILADELPHIA, May 01, 2025 (GLOBE NEWSWIRE) -- Enviri Corporation (NYSE: NVRI) (the "Company") today reported first quarter 2025 results. Revenues in the first quarter of 2025 totaled $548 million, and on a U.S. GAAP ("GAAP") basis, the consolidated loss from continuing operations was $11 million. Q1 Adjusted EBITDA was $67 million, compared to the Company's previously provided guidance range of $57 million to $63 million.
On a GAAP basis, the first quarter of 2025 diluted loss per share from continuing operations was $0.15, including contract adjustments in Harsco Rail, restructuring costs in Harsco Environmental and strategic expenses. The adjusted diluted loss per share from continuing operations in the first quarter of 2025 was $0.18. These figures compare with a first quarter of 2024 GAAP diluted loss per share from continuing operations of $0.21, which included strategic expenses and a long-lived asset adjustment in Harsco Rail, and an adjusted diluted loss per share from continuing operations of $0.03.
"We are pleased to have met our financial goals for the quarter, supported by consistent execution in our business units," said Enviri Chairman and CEO Nick Grasberger. "Clean Earth continued to perform well, delivering double-digit earnings growth despite some weather-related challenges in the quarter. Notwithstanding persistent pressures in the steel industry, Harsco Environmental performed above our expectations, and at Rail, we strengthened our leadership team and continued to make positive progress on our ETO contracts."
"While we enter the second quarter amidst a backdrop of significant economic uncertainty, we do not expect our direct exposure to tariffs and recent global trade actions to be meaningful, and recent U.S. Dollar weakness is a net positive for Enviri. We are, however, mindful of the potential for slower economic activity due to the global trade environment, and as a result we are maintaining our 2025 outlook despite positive business momentum to start the year. Overall, we remain optimistic about our ability to execute against our organic growth ambitions as economic clarity develops and we remain focused on our goal to deliver sustainable value creation for shareholders."
Enviri Corporation--Selected First Quarter Results
($ in millions, except per share amounts) Q1 2025 Q1 2024
---------- ----------
Revenues $ 548 $ 600
Operating income/(loss) from continuing
operations - GAAP $ 31 $ 26
Income (loss) from continuing operations $ (11) $ (16)
Diluted EPS from continuing operations - GAAP $(0.15) $(0.21)
Adjusted EBITDA - non-GAAP $ 67 $ 78
Adjusted EBITDA margin - non-GAAP 12.2% 13.0%
Adjusted diluted EPS from continuing
operations - non-GAAP $(0.18) $(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 First Quarter Operating Results
Consolidated revenues from continuing operations were $548 million, or 9% below the prior-year quarter. Clean Earth realized an increase in revenues compared with the first quarter of 2024, while revenues for the Company's other business segments were lower year-on-year. Business divestitures and foreign currency ("FX") translation negatively impacted first quarter 2025 revenues by approximately $25 million and $14 million, respectively, compared with the same quarter in 2024. The Company's GAAP consolidated loss from continuing operations was $11 million for the first quarter of 2025, compared with a GAAP consolidated loss of $16 million in the same quarter of 2024. Meanwhile, Adjusted EBITDA totaled $67 million in the first quarter of 2025 versus $78 million in the first quarter of the prior year. Increased Adjusted EBITDA from Clean Earth was offset by lower contributions from the Company's other business segments, as anticipated. Divestitures and FX translation negatively impacted first quarter 2025 Adjusted EBITDA by approximately $3 million and $4 million, respectively, compared with the prior-year period.
First Quarter Business Review
Harsco Environmental
($ in millions) Q1 2025 Q1 2024
--------- ---------
Revenues $ 243 $ 299
Operating income (loss) - GAAP $ 10 $ 20
Adjusted EBITDA - non-GAAP $ 39 $ 49
Adjusted EBITDA margin - non-GAAP 16.2% 16.5%
----------------------------------- ---- ----
Harsco Environmental revenues totaled $243 million in the first quarter of 2025, a decrease compared with the prior-year quarter. The year-over-year revenue change is attributable to business divestitures, FX translation, and lower service levels due to site closures and contract exits. Excluding FX and divestiture impacts, revenues declined 6%. The segment's GAAP operating income was $10 million and Adjusted EBITDA totaled $39 million in the first quarter of 2025. These figures compare with GAAP operating income of $20 million and Adjusted EBITDA of $49 million in the prior-year period. The year-on-year change in adjusted earnings reflects the above-mentioned impacts. As a result, Harsco Environmental's Adjusted EBITDA margin was 16.2% in the first quarter of 2025 versus 16.5% in the comparable quarter of 2024.
Clean Earth
($ in millions) Q1 2025 Q1 2024
--------- ---------
Revenues $ 235 $ 226
Operating income (loss) - GAAP $ 23 $ 21
Adjusted EBITDA - non-GAAP $ 38 $ 34
Adjusted EBITDA margin - non-GAAP 16.2% 15.1%
------------------------------------- ---- ----
Clean Earth revenues totaled $235 million in the first quarter of 2025, a 4% increase over the prior-year quarter due to higher volumes and services pricing. The segment's GAAP operating income was $23 million and Adjusted EBITDA was $38 million in the first quarter of 2025. These figures compare with GAAP operating income of $21 million and Adjusted EBITDA of $34 million in the prior-year period. The year-on-year improvement in adjusted earnings is attributable to the above-mentioned factors as well as efficiency improvements. As a result, Clean Earth's Adjusted EBITDA margin increased to 16.2% in the first quarter of 2025 versus 15.1% in the comparable quarter of 2024.
Harsco Rail
($ in millions) Q1 2025 Q1 2024
----------- -----------
Revenues $ 70 $ 75
Operating income (loss) - GAAP $ 8 $ (9)
Adjusted EBITDA - non-GAAP $ (2) $ 2
Adjusted EBITDA margin - non-GAAP (3.2)% 2.7%
------------------------------------- ------- ---
Harsco Rail revenues totaled $70 million in the first quarter of 2025, a 7% decrease over the prior-year quarter. This change reflects lower volumes, mainly for aftermarket parts and technology products. The segment's GAAP operating income was $8 million and Adjusted EBITDA loss was $2 million in the first quarter of 2025. These figures compare with a GAAP operating loss of $9 million and Adjusted EBITDA of $2 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 $7 million in the first quarter of 2025, compared with $1 million in the prior-year period. Adjusted free cash flow was $(13) million in the first quarter of 2025, compared with $(17) million in the prior-year period. The change in adjusted free cash flow compared with the prior-year quarter is attributable to working capital movements (including $10 million of proceeds from the Company's accounts receivable facility) and reduced capital spending, partially offset by lower cash earnings.
2025 Outlook
The Company is reaffirming its 2025 guidance for Adjusted EBITDA and Free Cash Flow, contemplating that economic conditions will remain mostly stable for the balance of the year. The impact of recent U.S. tariffs and other global trade actions have not had a meaningful impact on the Company's business to date and the direct (net) impacts of such actions in the future are anticipated to be minimal. However, economic uncertainty is elevated and business visibility into the second-half of 2025 is limited. And while first quarter performance and recent U.S. dollar weakness are positives, the Company believes it is prudent to keep its full-year outlook intact.
Guidance for each of the Company's business segments is also unchanged, with Adjusted EBITDA projected to increase at Clean Earth and Harsco Rail and decline in Harsco Environmental as a result of FX translation and business divestitures. 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 a less favorable 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 and pricing as well as contract cost 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 $(0.50) - $(0.26)
------------------------------------------------------- ---------------------
Adjusted Diluted Earnings/(Loss) Per Share from
Continuing Operations $(0.34) - $(0.11)
------------------------------------------------------- ---------------------
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
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Account Receivable Securitization Fees $10 million
------------------------------------------------------- ---------------------
Pension Expense (Non-Operating) $20 million
------------------------------------------------------- ---------------------
Tax Expense, Excluding Any Unusual Items $28 - $33 million
------------------------------------------------------- ---------------------
Net Capital Expenditures $130 - $140 million
------------------------------------------------------- ---------------------
Q2 2025 Outlook
GAAP Loss From Continuing Operations $(17) - $(8) million
------------------------------------------------------- ---------------------
Adjusted EBITDA $65 - $75 million
------------------------------------------------------- ---------------------
GAAP Diluted Earnings/(Loss) Per Share from Continuing $(0.23) - $(0.11)
Operations
------------------------------------------------------- ---------------------
Adjusted Diluted Earnings/(Loss) Per Share from $(0.17) - $(0.05)
Continuing Operations
------------------------------------------------------- ---------------------
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 investors.enviri.com, or by dialing (844) 539-1331 or (412) 652-1264 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.
Investor Contact Media Contact
David Martin Karen Tognarelli
+1.267.946.1407 +1.717.480.6145
dmartin@enviri.com ktognarelli@enviri.com
ENVIRI CORPORATION
CONSOLIDATED
STATEMENTS OF
OPERATIONS
(Unaudited)
Three Months Ended
March 31
--------------------------------------
(In thousands,
except per share
amounts) 2025 2024
-------
Revenues from
continuing
operations:
Service revenues $ 476,840 $499,154
Product revenues 71,444 101,163
------------------------- -------
Total revenues 548,284 600,317
------------------------- -------
Costs and expenses
from continuing
operations:
Cost of services
sold 372,402 392,852
Cost of products
sold 51,361 85,410
Selling, general
and
administrative
expenses 89,108 87,126
Research and
development
expenses 467 861
Remeasurement of
long-lived assets -- 10,695
Other expense
(income), net 4,291 (2,440)
------------------------- -------
Total costs and
expenses 517,629 574,504
------------------------- -------
Operating income
(loss) from
continuing
operations 30,655 25,813
Interest income 454 1,697
Interest expense (26,574) (28,122)
Facility fees and
debt-related income
(expense) (2,612) (2,789)
Defined benefit
pension income
(expense) (5,033) (4,176)
------------------------- -------
Income (loss)
from continuing
operations
before income
taxes and equity
in income (3,110) (7,577)
Income tax benefit
(expense) from
continuing
operations (7,946) (7,915)
Equity in income
(loss) of
unconsolidated
entities, net 28 (249)
------------------------- -------
Income (loss)
from continuing
operations (11,028) (15,741)
------------------------- -------
Discontinued
operations:
Income (loss)
from
discontinued
businesses (1,579) (1,492)
Income tax
benefit
(expense) from
discontinued
businesses 412 387
------------------------- -------
Income (loss)
from
discontinued
operations, net
of tax (1,167) (1,105)
------------------------- -------
Net income (loss) (12,195) (16,846)
Less: Net loss
(income)
attributable to
noncontrolling
interests (1,201) (1,116)
------------------------- -------
Net income (loss)
attributable to
Enviri Corporation $ (13,396) $(17,962)
========================= =======
Amounts attributable
to Enviri
Corporation common
stockholders:
Income (loss) from
continuing
operations, net
of tax $ (12,229) $(16,857)
Income (loss) from
discontinued
operations, net of
tax (1,167) (1,105)
------------------------- -------
Net income
(loss)
attributable to
Enviri
Corporation
common
stockholders $ (13,396) $(17,962)
========================= =======
Weighted-average
shares of common
stock outstanding 80,331 79,945
Basic earnings (loss) per common share attributable
to Enviri Corporation common stockholders:
Continuing
operations $ (0.15) $ (0.21)
Discontinued
operations (0.01) (0.01)
------------------------- -------
Basic earnings (loss)
per share
attributable to
Enviri Corporation
common stockholders $ (0.17) $ (0.22) (a)
========================= =======
Diluted
weighted-average
shares of common
stock outstanding 80,331 79,945
Diluted earnings (loss) per common share attributable
to Enviri Corporation common stockholders:
Continuing
operations $ (0.15) $ (0.21)
Discontinued
operations (0.01) (0.01)
------------------------- -------
Diluted earnings
(loss) per share
attributable to
Enviri Corporation
common stockholders $ (0.17) $ (0.22) (a)
========================= =======
(a) Earnings (loss) per share attributable to Enviri Corporation
common stockholders is calculated based on actual
amounts. As a result, these per share amounts may
not total due to rounding.
ENVIRI CORPORATION
CONSOLIDATED BALANCE
SHEETS (Unaudited)
March 31 December 31
(In thousands) 2025 2024
------------------------- ------------------------- -------------
ASSETS
Current assets:
Cash and cash
equivalents $ 102,471 $ 88,359
Restricted cash 1,958 1,799
Trade accounts
receivable, net 280,965 260,690
Other receivables 39,032 40,439
Inventories 193,207 182,042
Current portion of
contract assets 50,179 59,881
Prepaid expenses 51,712 62,435
Other current assets 7,716 14,880
----------------------- ---------
Total current assets 727,240 710,525
----------------------- ---------
Property, plant and
equipment, net 669,224 664,292
Right-of-use assets, net 102,873 92,153
Goodwill 747,338 739,758
Intangible assets, net 292,277 298,438
Retirement plan assets 75,584 73,745
Deferred income tax assets 19,376 17,578
Other assets 55,096 53,744
----------------------- ---------
Total assets $ 2,689,008 $2,650,233
======================= =========
LIABILITIES
Current liabilities:
Short-term borrowings $ 8,730 $ 8,144
Current maturities of
long-term debt 21,895 21,004
Accounts payable 232,259 214,689
Accrued compensation 49,760 63,686
Income taxes payable 2,177 5,747
Reserve for forward
losses on contracts 46,945 54,320
Current portion of
advances on contracts 7,298 13,265
Current portion of
operating lease
liabilities 26,182 26,049
Other current
liabilities 173,508 159,478
----------------------- ---------
Total current
liabilities 568,754 566,382
----------------------- ---------
Long-term debt 1,442,196 1,410,718
Retirement plan
liabilities 27,450 27,019
Operating lease
liabilities 78,889 67,998
Environmental liabilities 43,591 46,585
Deferred tax liabilities 32,673 26,796
Other liabilities 46,768 55,136
----------------------- ---------
Total liabilities 2,240,321 2,200,634
----------------------- ---------
ENVIRI CORPORATION
STOCKHOLDERS' EQUITY
Common stock 147,515 146,844
Additional paid-in capital 258,475 255,102
Accumulated other
comprehensive loss (530,613) (538,964)
Retained earnings 1,386,951 1,400,347
Treasury stock (853,360) (851,881)
----------------------- ---------
Total Enviri
Corporation
stockholders'
equity 408,968 411,448
Noncontrolling interests 39,719 38,151
----------------------- ---------
Total equity 448,687 449,599
----------------------- ---------
Total liabilities
and equity $ 2,689,008 $2,650,233
======================= =========
ENVIRI CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended March 31
----------------------------------------
(In thousands) 2025 2024
-------
Cash flows from operating
activities:
Net income (loss) $ (12,195) $(16,846)
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Depreciation 36,442 36,920
Amortization 7,403 8,174
Deferred income tax
(benefit) expense 2,776 3,445
Equity (income) loss
of unconsolidated
entities, net (28) 249
Right-of-use assets 7,416 8,599
Remeasurement of
long-lived assets -- 10,695
Stock-based
compensation 4,044 3,860
Other, net (637) (3,088)
Changes in assets and
liabilities, net of
acquisitions and
dispositions of
businesses:
Accounts receivable (13,501) 24,426
Inventories (8,995) (5,297)
Contract assets 6,456 (9,199)
Accounts payable 9,138 (13,751)
Accrued interest
payable (6,931) (6,820)
Accrued compensation (15,105) (25,531)
Advances on
contracts and other
customer advances (14,770) (1,618)
Operating lease
liabilities (7,435) (8,212)
Retirement plan
liabilities, net 4,488 (340)
Other assets and
liabilities 8,034 (4,318)
------------------------- -------
Net cash (used)
provided by operating
activities 6,600 1,348
------------------------- -------
Cash flows from investing
activities:
Purchases of property,
plant and equipment (21,624) (26,881)
Proceeds from sales of
assets 1,447 4,313
Expenditures for
intangible assets (7) (77)
Net proceeds (payments)
from settlement of
foreign currency
forward exchange
contracts 1,737 (601)
Net cash (used)
provided by
investing
activities (18,447) (23,246)
------------------------- -------
Cash flows from financing
activities:
Short-term borrowings,
net 2,812 (9,003)
Borrowings and
repayments under
Revolving Credit
Facility, net 30,000 35,000
Repayments of Term Loan (1,250) (1,250)
Cash paid for finance
leases and other
long-term debt (4,158) (3,394)
Contributions from
noncontrolling
interests -- 874
Dividends paid to
noncontrolling
interests -- (8,243)
Stock-based
compensation -
Employee taxes paid (1,277) (1,041)
Net cash (used)
provided by
financing
activities 26,127 12,943
------------------------- -------
Effect of exchange rate
changes on cash and cash
equivalents, including
restricted cash (9) (8,251)
------------------------- -------
Net increase (decrease) in
cash and cash
equivalents, including
restricted cash 14,271 (17,206)
Cash and cash equivalents,
including restricted
cash, at beginning of
period 90,158 124,614
------------------------- -------
Cash and cash equivalents,
including restricted
cash, at end of period $ 104,429 $107,408
========================= =======
ENVIRI CORPORATION
REVIEW OF OPERATIONS BY SEGMENT
(Unaudited)
Three Months Ended
March 31, 2025 March 31, 2024
-------------------------------------------------- ---------------------
Operating
Operating Income
(In thousands) Revenues Income (Loss) Revenues (Loss)
-------------------- ------------------------- ----------------------- -------- -----------
Harsco
Environmental $ 243,106 $ 10,073 $299,119 $19,588
Clean Earth 235,231 22,665 226,030 20,593
Harsco Rail 69,947 8,155 75,168 (9,061)
Corporate -- (10,238) -- (5,307)
------------------------ --------------------- ------- ------
Consolidated
Totals $ 548,284 $ 30,655 $600,317 $25,813
======================== ===================== ======= ======
ENVIRI CORPORATION
RECONCILIATION OF ADJUSTED INCOME (LOSS) FROM CONTINUING
OPERATIONS TO INCOME (LOSS) FROM CONTINUING OPERATIONS,
NET OF TAX, AS REPORTED
(Unaudited)
Three Months Ended
March 31
----------------------
(in thousands, except per share amounts) 2025 2024
-------
Income (loss) from continuing operations,
net of tax, as reported $(12,229) $(16,857)
Adjustments:
Change in provision for forward losses and
other contract-related costs on certain
contracts (a) (11,469) --
Strategic costs (b)(d) 1,525 681
Remeasurement of long-lived assets (c) -- 10,695
Restructuring and related costs (d) 3,333 --
Net gain on sale of assets (d) -- (3,281)
Income tax impact from adjustments above
(e) (646) 602
------- -------
Adjusted income (loss) from continuing
operations, including acquisition
amortization expense (19,486) (8,160)
Acquisition amortization expense, net of
tax (f) 4,880 5,555
------- -------
Adjusted income (loss) from continuing
operations, net of tax $(14,606) $ (2,605)
======= =======
Diluted weighted average shares of common
stock outstanding 80,331 79,945
Diluted earnings (loss) per share from
continuing operations, as reported $ (0.15) $ (0.21)
======= =======
Adjusted diluted earnings (loss) per share
from continuing operations $ (0.18) $ (0.03)
======= =======
(a) Classified within Operating income (loss) from continuing
operations and includes $12.2 million recorded in
Total revenues, net of $0.7 million recorded in Cost
of services and products sold.
(b) Classified within Operating income (loss) from continuing
operations in Selling, general and administrative
expenses for strategic costs incurred during the three
months ended March 31, 2025.
(c) Classified within Operating income (loss) from continuing
operations in Remeasurement of long-lived assets.
(d) Classified within Operating income (loss) from continuing
operations in Other expense (income), net, and included
strategic costs incurred during the three months ended
March 31, 2024 only.
(e) Unusual items are tax-effected at the global effective
tax rate before discrete items in effect during the
year the unusual item is recorded.
(f) Pre-tax acquisition amortization expense was $6.5
million and $7.2 million in Q1 2025 and 2024, respectively.
ENVIRI CORPORATION
RECONCILIATION OF PROJECTED ADJUSTED INCOME (LOSS)
FROM CONTINUING OPERATIONS TO INCOME (LOSS) FROM CONTINUING
OPERATIONS, NET OF TAX
(Unaudited)
Projected
Twelve Months
Three Months Ending Ending
June 30 December 31
--------------------- -----------------------
2025 2025
------------------- -------------------
(in millions,
except per share
amounts) (a) Low High Low High
------------------- --------- ---------- --------- ------------
GAAP income (loss)
from continuing
operations, net of
tax $ (18) $ (9) $ (40) $ (21)
Adjustments:
Change in
provision for
forward losses
and other
contract-related
costs -- -- (11) (11)
Strategic costs -- -- 2 2
Restructuring and
related costs -- -- 3 3
Income tax impact
from adjustments
above -- -- (1) (1)
------- -------- ------- --------
Adjusted income
(loss) from
continuing
operations,
including
acquisition
amortization
expense (18) (9) (47) (28)
Estimated
acquisition
amortization
expense, net of
tax 5 5 20 20
------- -------- ------- --------
Adjusted income
(loss) from
continuing
operations, net of
tax $ (13) $ (4) $ (28) $ (9)
======= ======== ======= ========
Diluted weighted
average shares of
common stock
outstanding 80 80 80 80
------- -------- ------- --------
GAAP diluted
earnings (loss)
per share from
continuing
operations $ (0.23) $ (0.11) $ (0.50) $ (0.26)
======= ======== ======= ========
Adjusted diluted
earnings (loss)
per share from
continuing
operations $ (0.17) $ (0.05) $ (0.34) $ (0.11)
======= ======== ======= ========
(a) Amounts above are rounded and recalculation may not
yield precise results.
ENVIRI CORPORATION
RECONCILIATION OF ADJUSTED EBITDA BY SEGMENT TO OPERATING
INCOME (LOSS), AS REPORTED, BY SEGMENT
(Unaudited)
Harsco Clean Harsco Consolidated
(In thousands) Environmental Earth Rail Corporate Totals
------------------ ----------------- ------------ ------------ --------- ----------------
Three Months Ended
March 31, 2025:
------------------
Operating income
(loss), as
reported $ 10,073 $ 22,665 $ 8,155 $(10,238) $ 30,655
Provision for
forward losses
on certain
contracts and
related costs -- -- (11,469) -- (11,469)
Strategic costs -- -- -- 1,525 1,525
Restructuring
and related
costs 3,333 -- -- -- 3,333
Operating income
(loss), excluding
unusual items 13,406 22,665 (3,314) (8,713) 24,044
Depreciation 25,509 9,620 1,032 281 36,442
Amortization 540 5,845 67 -- 6,452
--- -------- ------- ------- ------- --------
Adjusted EBITDA $ 39,455 $ 38,130 $ (2,215) $ (8,432) $ 66,938
=== ======== ======= ======= ======= ========
Revenues, as
reported $ 243,106 $235,231 $ 69,947 $ 548,284
=== ======== ======= ======= ========
Adjusted EBITDA
margin (%) 16.2% 16.2% (3.2)% 12.2%
=== ======== ======= ======== ========
Three Months Ended March 31, 2024:
--------------------------------------
Operating income
(loss), as
reported $ 19,588 $ 20,593 (9,061) $ (5,307) $ 25,813
Remeasurement
of long-lived
assets -- -- 10,695 -- 10,695
Strategic costs -- -- -- 681 681
Net gain on
sale of
assets -- -- -- (3,281) (3,281)
Operating income
(loss), excluding
unusual items 19,588 20,593 1,634 (7,907) 33,908
Depreciation 28,789 7,413 361 357 36,920
Amortization 1,018 6,167 22 -- 7,207
--- -------- ------- ------- ------- --------
(MORE TO FOLLOW) Dow Jones Newswires
May 01, 2025 07:00 ET (11:00 GMT)
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