Investor Presentaiton
RECONCILIATION OF NON-GAAP MEASURES
HARSCO CORPORATION
RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS TO DILUTED EARNINGS (LOSS) PER SHARE FROM CONTINUING
OPERATIONS AS REPORTED (Unaudited)
Diluted loss per share from continuing operations as reported
Corporate acquisition and integration costs (a)
Corporate unused debt commitment and amendment fees (b)
Taxes on above unusual items (c)
Adjusted diluted earnings per share from continuing operations, including acquisition amortization expense
Acquisition amortization expense, net of tax (d)
Three Months
Ended
June 30
2020
$
(0.14)
0.22
0.02
(0.05)
0.05
0.08
0.13
Adjusted diluted earnings per share from continuing operations
a.
Costs at Corporate associated with supporting and executing the Company's growth strategy (Q2 2020 $17.2 million pre-tax).
b.
Costs at Corporate associated with amending the Company's existing Senior Secured Credit Facilities to increase the net debt to consolidated adjusted EBITDA ratio covenant (Q2 2020
$1.4 million pre-tax).
C.
d.
Unusual items are tax-effected at the global effective tax rate, before discrete items, in effect at the time the unusual item is recorded, except for unusual items from countries where no
tax benefit can be realized, in which case a zero percent tax rate is used.
Acquisition amortization expense was $8.4 million pre-tax for Q2 2020.
The Company's management believes Adjusted diluted earnings per share from continuing operations, which is a non-GAAP financial measure, is useful to investors because it provides an
overall understanding of the Company's historical and future prospects. Exclusion of unusual items permits evaluation and comparison of results for the Company's core business operations,
and it is on this basis that management internally assesses the Company's performance. Exclusion of acquisition-related intangible asset amortization expense, the amount of which can vary
by the timing, size and nature of the Company's acquisitions, facilitates more consistent internal comparisons of operating results over time between the Company's newly acquired and long-
held businesses, and comparisons with both acquisitive and non-acquisitive peer companies. It is important to note that such intangible assets contribute to revenue generation and that
intangible asset amortization related to past acquisitions will recur in future periods until such intangible assets have been fully amortized. This measure should be considered in addition to,
rather than as a substitute for, other information provided in accordance with GAAP.
© 2020 Harsco Corporation. All Rights Reserved. This document and the information set forth herein are the property of Harsco Corporation.
HARSCO
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