Q1 2024 Enviri Corp Earnings Call Transcript
Key Points
- Enviri Corp (NVRI) reported a strong start to 2024 with each of its three segments performing above expectations in terms of cash flow and adjusted EBITDA.
- Consolidated EBITDA increased by approximately 20% compared to Q1 of the previous year, with EBITDA margin improving nearly 150 basis points to 13%.
- Enviri Corp (NVRI) updated its full-year guidance to reflect about a 5% improvement in the underlying performance of the Clean Earth and Harsco Environmental segments.
- The company's cash earnings are at the highest level in the last decade, indicating strong financial performance.
- Enviri Corp (NVRI) is actively working on reducing leverage, with a target to generate $50 million to $75 million of cash from asset disposals this year.
- The degree of financial leverage is higher than desired in the current economic and interest rate environment, posing a risk.
- Currency headwinds impacted the performance and are expected to pose more of a challenge over the remainder of the year.
- Free cash flow for the quarter was negative $17 million compared to a positive $16 million in the prior year quarter.
- The divestiture process for Harsco Rail has been paused due to risks associated with large European contracts, delaying potential strategic and financial benefits.
- The company's Rail business includes loss-making engineered-to-order contracts, which have required forward loss charges and continue to pose financial risks.
Good morning. My name is Jason, and I will be your conference facilitator. At this time, I would like to welcome everyone to the Enviri Corporation First Quarter 2024 Release Conference Call. (Operator Instructions)
Also, this telephone conference presentation and accompanying webcast made on behalf of Enviri Corporation are subject to copyright by Enviri Corporation and all rights are reserved. No recordings or redistributions of this telephone conference by any other party are permitted without the expressed written consent of Enviri Corporation. Your participation indicates your agreement.
I would now like to introduce Dave Martin of Enviri Corporation. Mr. Martin, you may begin your call.
Thank you, Jason, and welcome to everyone joining us this morning. With me today is Nick Grasberger, our Chairman and Chief Executive Officer; and Tom Vadaketh, our Senior Vice President and Chief Financial Officer.
This morning, we will discuss our results for the first quarter and our
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