Investor Presentaiton
RECONCILIATION OF NON-GAAP MEASURES
HARSCO CORPORATION
RECONCILIATION OF FREE CASH FLOW TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES (Unaudited)
Three Months Ended
September 30, 2020
(In thousands)
Net cash provided by operating activities
Less capital expenditures
Less expenditures for intangible assets
Plus capital expenditures for strategic ventures (a)
Plus total proceeds from sales of assets (b)
Plus transaction-related expenditures (c)
Plus taxes paid on sale of divested businesses (d)
Free cash flow
Three Months
Nine Months Ended
September 30, 2020
Ended
$
2020
20,755
(27,883)
$
2019
44,657
(55,870)
$
2020
42,276
(79,096)
2019
June 30
2020
$
(127)
(721)
(169)
50,029
(147,071)
(1,246)
$
33,057
(23,319)
16
603
1,461
1,967
4,831
225
521
5,355
4,473
7,560
1,767
10,732
13,809
18,410
10,390
26,672
26,380
5,961
$
14,185
$
5,272
$
10,308
$
(59,517)
$
376
18,083
(a) Capital expenditures for strategic ventures represent the partner's share of capital expenditures in certain ventures consolidated in the Company's financial statements.
(b) Asset sales are a normal part of the business model, primarily for the Harsco Environmental Segment.
(c) Expenditures directly related to the Company's acquisition and divestiture transactions.
(d) Income taxes paid on gains on the sale of discontinued businesses.
The Company's management believes that Free cash flow, which is a non-GAAP financial measure, is meaningful to investors because management reviews cash flows generated from
operations less capital expenditures net of asset sales proceeds and transaction-related expenditures and income taxes for planning and performance evaluation purposes. It is important to
note that free cash flow does not represent the total residual cash flow available for discretionary expenditures since other non-discretionary expenditures, such as mandatory debt service
requirements and settlements of foreign currency forward exchange contracts, are not deducted from this measure. 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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