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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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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