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Sep 30, 2020
Harsco Q3 2020 Earnings Report
Reported third quarter 2020 results with revenues increasing due to ESOL acquisition and easing COVID-19 impacts.
Key Takeaways
Harsco Corporation reported a 20% increase in third-quarter revenue to $509 million compared to the previous year, driven by the ESOL acquisition and higher revenues in the Rail segment. GAAP operating income was $5 million, and adjusted EBITDA totaled $59 million. The company reported a GAAP diluted loss per share of $0.10 and an adjusted EPS of $0.08.
Third-quarter revenues increased 14 percent from the second quarter to $509 million.
Third-quarter GAAP operating income of $5 million and GAAP diluted loss per share of $0.10.
Adjusted Q3 earnings per share of $0.08.
Net cash provided by operating activities of $21 million and free cash flow increased to $18 million.
Harsco
Harsco
Harsco Revenue by Segment
Revenue by Segment
Harsco Environmental Revenue
CapyFin.comClean Earth Revenue
CapyFin.comHarsco Rail Revenue
CapyFin.com Forward Guidance
The Company anticipates that its adjusted EBITDA in the fourth quarter will modestly improve, at the mid-point of guidance, versus the just-completed quarter. Specifically, Harsco expects its Q4 EBITDA to be within a range of $58 million to $63 million. These ongoing actions are expected to enable Harsco to generate free cash flow of $20 million to $25 million in the final quarter of the year.
Positive Outlook
- Underlying business conditions improved during the third quarter.
- Fundamental improvement was most apparent within Harsco Environmental and Clean Earth and we expect these positive trends to continue in the fourth quarter.
- Measures implemented earlier in 2020 to control costs remain in place.
- The Company is also maintaining its capital spending and working capital discipline to support positive free cash flow.
- Harsco expects its Q4 EBITDA to be within a range of $58 million to $63 million.
Challenges Ahead
- Improvement realized was uneven and the pace of recovery varied within relevant end-markets.
- Rail has yet to see a positive inflection as customers, particularly in North America, continue to defer capital spending.
- Corporate spending will be modestly higher in the fourth quarter compared with Q3 due to the timing of certain expenses.
- Further cost actions may be necessary if the pace of economic recovery slows.
- This outlook is subject to certain risks related to COVID-19 and other factors.
Revenue & Expenses
Visualization of income flow from segment revenue to net income