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Mar 31, 2020
Harsco Q1 2020 Earnings Report
Harsco reported mixed results for Q1 2020, with revenue up but GAAP operating income and EPS down year-over-year, while adjusted EBITDA exceeded prior guidance due to strong performance in Clean Earth and Rail.
Key Takeaways
Harsco Corporation reported Q1 2020 results with revenues increasing by 21% to $399 million, driven by the Rail segment and the Clean Earth acquisition. GAAP operating income decreased to $3 million from $20 million year-over-year, and the diluted loss per share was $0.11. However, adjusted EBITDA was $57 million, exceeding prior guidance.
Q1 GAAP Operating Income was $3 million.
Adjusted EBITDA totaled $57 million, surpassing prior guidance due to robust performance in Clean Earth and Rail, alongside reduced corporate spending.
The purchase of ESOL was completed, furthering the company's transformation into an environmental solutions provider.
Harsco Rail's SCOR program (Supply Chain Operations Recovery) is yielding positive outcomes.
Harsco
Harsco
Harsco Revenue by Segment
Revenue by Segment
Harsco Environmental Revenue
CapyFin.comClean Earth Revenue
CapyFin.comHarsco Rail Revenue
CapyFin.com Forward Guidance
Harsco has suspended detailed guidance for the time being due to uncertainty related to the COVID-19 pandemic and its impact on relevant markets.
Positive Outlook
- Harsco is operating as an essential business in each of its segments in the United States and almost entirely around the world.
- The Company has taken significant actions, as previously disclosed, to protect its stakeholders and minimize the operational and financial impacts of the pandemic on the business, while continuing to provide customers with essential products and services.
- Harsco has implemented work safety and flexibility measures to keep employees and customers healthy, as facilities remain operational.
- Harsco has also taken measures to adjust its cost structure and reduce capital expenditures, with the goal of improving free cash flow for the year and preserving its financial flexibility and strong liquidity position.
- The Company intends to lower 2020 capital spending by approximately $75 million.
Challenges Ahead
- Sluggish customer demand and business disruptions are expected to persist for some time.
- The extent and duration of these impacts cannot be quantified at this time.
- Underlying business conditions currently vary across markets.
- Uncertainty around the pandemic and its evolving impact on relevant markets.
- Harsco will provide formal guidance when visibility improves, and it deems appropriate.