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Investor Presentaiton

RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF ADJUSTED EBITDA BY SEGMENT TO OPERATING INCOME (LOSS) AS REPORTED BY SEGMENT (Unaudited) (In thousands) Harsco Environmental Harsco Clean Earth (a) Three Months Ended September 30, 2019: Operating income (loss) as reported Corporate acquisition and integration costs Harsco Clean Earth Segment severance costs Harsco Environmental Segment contingent consideration adjustments Harsco Rail Segment improvement initiative costs Harsco Environmental Segment provision for doubtful accounts Harsco Environmental Segment site exit related Operating income (loss) excluding unusual items Depreciation Amortization Adjusted EBITDA Revenues as reported Adjusted EBITDA margin (%) Harsco Rail Corporate Consolidated Totals $ 32,794 $ 11,308 $ 12,115 $ (9,472) 2,743 $ 46,745 2,743 1,254 1,254 (906) (906) 845 845 815 815 (156) (156) 32,547 12,562 12,960 25,557 2,359 1,192 (6,729) 716 51,340 29,824 1,751 3,834 84 5,669 $ 59,855 $ 18,755 $ 14,236 $ (6,013) $ 86,833 $ 260,883 22.9 % $ 87,639 $ 74,633 $ 423,155 21.4% 19.1 % 20.5 % (a) The Company's acquisition of ESOL closed on April 6, 2020 and the Company's acquisition of Clean Earth closed on June 28, 2019. Consolidated Adjusted EBITDA is a non-GAAP financial measure and consists of income from continuing operations adjusted to add back income tax expense; equity income of unconsolidated entities, net; net interest; defined benefit pension income (expense); unused debt commitment and amendment fees; 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 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. However, this measure should be considered in addition to, rather than as a substitute for, net income from continuing operations, operating income from continuing operations and other information provided in accordance with GAAP. The Company's method of calculating Adjusted EBITDA may differ from methods used by other companies and, as a result, Adjusted EBITDA may not be comparable to other similarly titled measures disclosed by other companies. © 2020 Harsco Corporation. All Rights Reserved. This document and the information set forth herein are the property of Harsco Corporation. HARSCO 41
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