Financial Performance - Total revenues for Q2 2023 reached $520.2 million, a 8.1% increase from $481.1 million in Q2 2022[132] - Harsco Environmental segment revenues increased to $289.6 million in Q2 2023, up from $277.6 million in Q2 2022, driven by higher service pricing and operational improvements[132] - Clean Earth segment revenues rose to $230.6 million in Q2 2023, compared to $203.5 million in Q2 2022, primarily due to price increases and operational enhancements[132] - Consolidated operating income for Q2 2023 was $24.3 million, a significant recovery from an operating loss of $97.0 million in Q2 2022[132] - Revenues for the three months ended June 30, 2023 increased by $39.1 million, or 8.1%, compared to the same period in 2022, while revenues for the six months increased by $82.0 million, or 8.8%[142] Operating Margins - Harsco Environmental's operating margin decreased to 4.4% in Q2 2023 from 8.5% in Q2 2022, while Clean Earth's operating margin improved to 10.0% from a loss of 54.9%[132] - The Company anticipates Clean Earth segment operating results to improve meaningfully in 2023 due to higher service pricing and operational improvements[131] Impairment Charges - A net gain of $3.0 million was recognized in Q2 2023 related to a lease modification for a site relocation in the U.S.[135] - The Company recorded an impairment charge of $14.1 million in Q2 2023 related to abandoned equipment at an HE site in China[135] - The company recorded a goodwill impairment charge of $104.6 million in the CE segment during the second quarter of 2022, which did not recur in 2023[146] - An impairment charge of $14.1 million was recorded in the HE segment for the three months ended June 30, 2023[147] Expenses - Cost of sales for the three months ended June 30, 2023 increased by $3.4 million, or 0.8%, and for the six months, it increased by $27.1 million, or 3.5%[144] - Selling, general and administrative expenses (SG&A) for the three months ended June 30, 2023 rose by $8.9 million, or 13.1%, and for the six months, it increased by $11.7 million, or 8.5%[145] - Interest expense increased by $9.0 million for the three months and by $18.3 million for the six months ended June 30, 2023, primarily due to higher interest rates on Senior Secured Credit Facilities[149] - Defined benefit pension expense for the three and six months ended June 30, 2023 was $5.4 million and $10.7 million, respectively, compared to income of $2.2 million and $4.7 million in the same periods of 2022[152] - Income tax expense from continuing operations was $10.3 million and $17.2 million for the three and six months ended June 30, 2023, compared to benefits of $3.1 million and $1.9 million in 2022[153] Losses and Income - Loss from continuing operations was $18.6 million for the three months and $27.2 million for the six months ended June 30, 2023, an improvement from losses of $105.6 million and $111.8 million in the same periods of 2022[154] - Total other comprehensive income was $14.4 million and $21.6 million for the three and six months ended June 30, 2023, compared to losses of $29.1 million and $17.1 million in 2022[156] Cash Flow and Debt - Net cash used by investing activities in the first six months of 2023 was $56.4 million, an increase of $12.7 million from the same period in 2022[159] - Net cash provided by financing activities in the first six months of 2023 was $34.3 million, compared to net cash used of $(54.6) million in the first half of 2022, primarily due to increased net borrowings of $33.9 million[160] - The total outstanding balance of Senior Secured Credit Facilities as of June 30, 2023, was $1,375.0 million, an increase from $1,337.5 million at the end of 2022[162] - The consolidated net debt to Consolidated Adjusted EBITDA ratio was 4.63x as of June 30, 2023, remaining compliant with the covenant limit of 5.50x[164] - The Company could increase net debt by $248.7 million while remaining compliant with debt covenants as of June 30, 2023[164] Corporate Changes - The Company changed its corporate name from Harsco Corporation to Enviri Corporation on June 5, 2023, reflecting its transformation into an environmental solutions provider[129] Liquidity and Market Risks - The Company expects to continue utilizing its sources of liquidity, including cash from operations and borrowings, to meet future cash requirements for operations and growth initiatives[161] - Approximately 17.8% of the Company's consolidated cash and cash equivalents had regulatory restrictions as of June 30, 2023[167] - The required coverage of consolidated interest charges is set at a minimum of 2.75x through the end of 2024[163] - Market risks have not changed significantly from those disclosed in the Company's Annual Report for the fiscal year ended December 31, 2022[169]
enviri(NVRI) - 2023 Q2 - Quarterly Report