enviri(US:NVRI)2024-10-31 17:08Revenue Performance - Total revenues for the three months ended September 30, 2024, were $573.6 million, a decrease from $597.0 million in the same period of 2023, while revenues for the nine months ended September 30, 2024, increased to $1,783.9 million from $1,766.7 million[147]. - Harsco Environmental segment revenues for the three months ended September 30, 2024, were $279.1 million, down from $285.9 million in 2023, while nine-month revenues increased to $871.2 million from $848.7 million[147]. - Clean Earth segment revenues for the three months ended September 30, 2024, were $236.8 million, slightly down from $238.7 million in 2023, with nine-month revenues rising to $698.9 million from $691.8 million[147]. - Harsco Rail segment revenues for the three months ended September 30, 2024, were $57.7 million, down from $72.4 million in 2023, while nine-month revenues decreased to $213.8 million from $226.3 million[147]. - Total revenues for the three months ended September 30, 2024 decreased by $23.3 million, or 3.9%, compared to the same period in 2023, while revenues for the nine months increased by $17.2 million, or 1.0%[163]. - The Clean Earth segment reported revenues of $236.8 million for the three months ended September 30, 2024, down from $238.7 million in the same period of 2023, and $698.9 million for the nine months, up from $691.8 million[152]. Operating Income and Margins - Operating income for the total company for the three months ended September 30, 2024, was $37.4 million, compared to $28.8 million in the same period of 2023, with nine-month operating income remaining stable at $94.4 million[147]. - Harsco Environmental's operating margin improved to 11.9% for the three months ended September 30, 2024, compared to 6.2% in 2023, while Clean Earth's margin increased to 11.3% from 9.0%[147]. - Operating income from continuing operations for the nine months ended September 30, 2024 was $94.4 million, unchanged from the same period in 2023[162]. Future Expectations - The company expects Harsco Environmental's 2024 operating results to decrease compared to 2023 due to foreign currency impacts, divestitures, and lower commodity prices, partially offset by higher service pricing and operational improvements[143]. - Clean Earth is anticipated to see improved operating results in 2024 due to higher service pricing and increased demand, despite some one-time favorable items from 2023 not repeating[144]. - Rail segment operating results are expected to improve in 2024 driven by higher demand for rail maintenance equipment and services, supported by a strong backlog[145]. Expenses and Costs - SG&A expenses decreased by $4.3 million, or 4.6%, for the three months ended September 30, 2024, but increased by $4.6 million, or 1.7%, for the nine months compared to the same periods in 2023[167][168]. - The cost of services and products sold for the three months ended September 30, 2024 decreased by $16.2 million, or 3.4%, while it increased by $15.6 million, or 1.1%, for the nine months compared to the same periods in 2023[165]. - Higher selling, general and administrative expenses (SG&A) of $2.5 million and $8.1 million were recorded during the three and nine months ended September 30, 2024, respectively[151]. Asset Sales and Gains - The company completed the sale of Reed for $57.7 million and recognized proceeds from the sale of Performix during the nine months ended September 30, 2024[139]. - A net gain of $3.3 million on the sale of assets positively impacted operating income from continuing operations for the nine months ended September 30, 2024[160]. - Net pre-tax gains from the sale of businesses were $8.6 million and $10.5 million for the three and nine months ended September 30, 2024, respectively[172]. Cash Flow and Debt - Net cash provided by operating activities was $41.8 million for the nine months ended September 30, 2024, a decrease of $4.4 million from the prior year[185]. - Net cash used by investing activities was $22.2 million for the nine months ended September 30, 2024, a decrease of $56.1 million from the same period in 2023[186]. - Net cash used by financing activities was $22.4 million for the nine months ended September 30, 2024, compared to net cash provided of $49.9 million in the prior year[187]. - The total net debt to consolidated adjusted EBITDA ratio was 3.99x as of September 30, 2024, in compliance with the debt covenants[192]. - The Company expects to maintain sufficient financial liquidity and borrowing capacity to support its operational and strategic needs[184]. - The Company has a total outstanding balance of $437.0 million under its revolving credit facility as of September 30, 2024[193]. Cash and Cash Equivalents - As of September 30, 2024, the Company's consolidated cash and cash equivalents included $106.7 million held by non-U.S. subsidiaries[196]. - Approximately 7.4% of the Company's consolidated cash and cash equivalents had regulatory restrictions preventing fund transfers among subsidiaries[196]. - Non-U.S. subsidiaries held $28.5 million of cash and cash equivalents in consolidated strategic ventures, which may require partner approval for fund transfers[196]. - The majority of non-U.S. cash balances will support ongoing working capital needs and growth of the Company's non-U.S. operations[196]. Market Risks - Market risks have not changed significantly from those disclosed in the Company's Annual Report for the fiscal year ended December 31, 2023[198].