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Dec 31, 2020
Harsco Q4 2020 Earnings Report
Reported fourth quarter and full year 2020 results, with adjusted EPS of $0.12 and adjusted EBITDA of $62 million, marking an increase from the sequential and prior-year quarters.
Key Takeaways
Harsco Corporation reported a GAAP operating income of $11 million and a GAAP diluted loss per share of $0.07 for the fourth quarter of 2020. Adjusted earnings per share were $0.12, and adjusted EBITDA totaled $62 million, exceeding the company's guidance range. The company is optimistic about improved operating results across all business segments in 2021.
Fourth Quarter GAAP Operating Income was $11 Million and GAAP Diluted Loss Per Share was $0.07, including unusual items.
Q4 Adjusted Earnings Per Share was $0.12.
Adjusted Q4 EBITDA totaled $62 Million, an increase compared with both the sequential and prior-year quarters.
Full Year 2020 GAAP Operating Income was $21 Million, Adjusted EBITDA was $238 Million, and GAAP Diluted Loss Per Share was $0.41.
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's 2021 guidance anticipates that each of its three business segments will realize earnings improvement during the year.
Positive Outlook
- Strong backlog positions that provide forward visibility
- Anticipated benefits from the Company's key business initiatives including the ESOL integration
- Improving fundamentals in relevant end markets
- Environmental adjusted EBITDA is expected to increase due to higher services and applied products demand and benefits of growth initiatives, partially offset by higher SG&A spending.
- Clean Earth adjusted EBITDA is projected to increase due to the full-year impact of ESOL ownership, underlying organic growth for hazardous material services and integration benefits, partially offset by an additional allocation of Corporate costs and investments which include various one-time expenditures (such as rebranding and IT integration).
Challenges Ahead
- Rail adjusted EBITDA is anticipated to increase as a result of higher demand for equipment and technology products as well as higher contract services contributions, partially offset by R&D and SG&A investments and lower aftermarket parts contributions.
- Corporate spending is expected to range from $33 million to $34 million for the year.
- Net Interest Expense $63 - $66 million
- Net Capital Expenditures $155 - $175 million
- Effective Tax Rate, Excluding Any Unusual Items 36 - 38%
Revenue & Expenses
Visualization of income flow from segment revenue to net income