GlobeNewswire Inc | Aug 3, 2021 07:00AM EDT

August 03, 2021

-- Second Quarter Revenues Totaled $570 Million, an Increase of 27 Percent and 8 Percent, Respectively, From the Prior Year and Sequential Quarters -- Q2 GAAP Operating Income of $36 Million and GAAP Diluted Earnings Per Share of $0.18 -- Adjusted Q2 EBITDA Totaled $78 Million; At Upper-End of Previous Guidance Range -- Q2 Adjusted Earnings Per Share of $0.28 -- Full Year 2021 Adjusted EBITDA Guidance Range Unchanged At $295 Million To $310 Million

CAMP HILL, Pa., Aug. 03, 2021 (GLOBE NEWSWIRE) -- Harsco Corporation (NYSE:HSC) today reported second quarter 2021 results. On a U.S. GAAP ("GAAP") basis, second quarter of 2021 diluted earnings per share from continuing operations were $0.18 including certain strategic costs. Adjusted diluted earnings per share from continuing operations in the second quarter of 2021 were $0.28. These figures compare with a second quarter of 2020 GAAP diluted loss per share from continuing operations of $0.14 and adjusted diluted earnings per share from continuing operations of $0.13.

GAAP operating income from continuing operations for the second quarter of 2021 was $36 million. Adjusted EBITDA totaled $78 million in the quarter, compared to the Company's previously provided guidance range of $73 million to $79 million.

Harsco continued to experience strong growth and operational momentum during the second quarter in each of our businesses," said Chairman and CEO Nick Grasberger. The underlying business strength has broadened to include certain businesses that had lagged earlier in the economic recovery, and was supported by our ongoing operational improvements and key initiatives. We have also continued to make good progress on our integration with Clean Earth, which remains one of our near term priorities along with the ongoing efforts to strengthening our financial position. I am confident that Harsco is well-positioned to benefit as the global economy strengthens further, and we expect to create additional shareholder value in the future through our ongoing business transformation.

Harsco CorporationSelected Second Quarter Results

($ in millions, except per share Q2 2021 Q2 2020 Q1 2021amounts)Revenues $ 570 $ 447 $ 529 Operating income from continuing $ 36 $ 2 $ 25 operations - GAAPDiluted EPS from continuing operations $ 0.18 $ (0.14 ) $ 0.02 - GAAPAdjusted EBITDA - excluding unusual $ 78 $ 59 $ 66 itemsAdjusted EBITDA margin - excluding 13.7 % 13.2 % 12.4 %unusual itemsAdjusted diluted EPS from continuing $ 0.28 $ 0.13 $ 0.15 operations - excluding unusual items

Note: Adjusted earnings per share and adjusted EBITDA details presented throughout this release are adjusted for unusual items; in addition, adjusted earnings per share details are adjusted for acquisition-related amortization expense.

Consolidated Second Quarter Operating ResultsConsolidated total revenues from continuing operations were $570 million, an increase of 27 percent compared with the prior-year quarter. Each business segment realized meaningful revenue growth versus the comparable 2020 quarter. Foreign currency translation positively impacted second quarter 2021 revenues by approximately $16 million compared with the prior-year period, translating to an organic growth rate of 24 percent.

GAAP operating income from continuing operations was $36 million for the second quarter of 2021, compared with $2 million in the same quarter of last year. Meanwhile, adjusted EBITDA totaled $78 million in the second quarter of 2021 versus $59 million in the second quarter of 2020. This adjusted EBITDA increase is attributable to improved performance in each of the Company's business segments as a result of strengthening economic conditions, internal improvement actions and growth initiatives.

Second Quarter Business Review

Environmental

($ in millions) Q2 2021 Q2 2020 Q1 2021Revenues $ 273 $ 204 $ 258 Operating income - GAAP $ 30 $ 14 $ 26 Adjusted EBITDA - excluding unusual items $ 58 $ 40 $ 54 Adjusted EBITDA margin - excluding unusual 21.2 % 19.7 % 20.8 %items

Environmental revenues totaled $273 million in the second quarter of 2021, an increase of 34 percent compared with the prior-year quarter. This increase is principally attributable to improved demand for environmental services and applied products as well as favorable foreign exchange movements. The segment's GAAP operating income and adjusted EBITDA totaled $30 million and $58 million, respectively, in the second quarter of 2021. These figures compare with GAAP operating income of $14 million and adjusted EBITDA of $40 million in the prior-year period. The year-on-year improvement in adjusted earnings is attributable to increased services and products demand, as noted above.

Clean Earth

($ in millions) Q2 2021 Q2 2020 Q1 2021Revenues $ 196 $ 162 $ 189 Operating income - GAAP $ 7 $ ? $ 3 Adjusted EBITDA - excluding unusual items $ 18 $ 11 $ 15 Adjusted EBITDA margin - excluding unusual items 9.4 % 7.0 % 7.7 %

Note: The 2020 financial information provided above and discussed below for Clean Earth does not include a corporate cost allocation for ESOL.

Clean Earth revenues totaled $196 million in the second quarter of 2021, an increase of 21 percent compared with the prior-year quarter. The revenue increase is attributable to increased environmental services demand within both the hazardous waste and contaminated-dredge materials lines of business. Segment operating income was $7 million and adjusted EBITDA totaled $18 million in the second quarter of 2021. These figures compare with zero operating income and adjusted EBITDA of $11 million, respectively, in the prior-year period. The improvement in adjusted earnings is attributable to the above factors as well as integration improvement benefits. These factors were partially offset by personnel investments to support the Clean Earth platform and certain other expenditures, including IT and rebranding related expenses, which will not occur beyond 2021. Lastly, Clean Earth's adjusted EBITDA margin increased to 9.4 percent in the second quarter of 2021 versus 7.0 percent in the comparable-quarter of 2020.

Rail

($ in millions) Q2 2021 Q2 2020 Q1 2021Revenues $ 101 $ 82 $ 82 Operating income (loss) - GAAP $ 9 $ 9 $ 5 Adjusted EBITDA - excluding unusual items $ 10 $ 10 $ 6 Adjusted EBITDA margin - excluding unusual 10.1 % 12.2 % 7.3 %items

Rail revenues increased 24 percent compared with the prior-year quarter to $101 million. This increase principally reflects higher global equipment revenues, including those under various long-term supply contracts. The segment's operating income and adjusted EBITDA totaled $9 million and $10 million, respectively, in the second quarter of 2021, and these figures are similar to results realized in the prior-year quarter. EBITDA performance year-on-year reflects higher equipment contributions, offset by a less favorable sales mix across other business-lines and higher SG&A costs.

Cash FlowNet cash provided by operating activities totaled $37 million in the second quarter of 2021, compared with net cash provided by operating activities of $33 million in the prior-year period. Free cash flow was $6 million in the second quarter of 2021, compared with $18 million in the prior-year period. The change in free cash flow compared with the prior-year quarter is principally related to higher capital expenditures, some of which were deferred from 2020, as well as the timing of working capital items.

2021 OutlookThe Company's 2021 guidance is unchanged relative to the outlook provided with the Company's first quarter 2021 results. Comments by business segments are as follows:

Environmental. For the year, the primary drivers for an increase in adjusted EBITDA compared with 2020 are expected to be favorable demand for underlying services and products as well as higher commodity prices.

Clean Earth. For the year, adjusted EBITDA is projected to increase due to the full-year impact of ESOL ownership, underlying organic growth for hazardous material services and integration benefits, partially offset by an additional allocation of Corporate costs and investments which include various non-recurring expenditures.

Rail. For the year, the primary drivers for an increase in adjusted EBITDA versus 2020 remain higher anticipated demand for equipment and technology products, as well as higher contract services contributions.

Lastly, adjusted Corporate spending is still expected to range from $36 million to $37 million for the year.

Summary Outlook highlights are as follows:

2021 Full Year Outlook GAAP Operating Income $118 - $133 millionAdjusted EBITDA $295 - $310 millionGAAP Diluted Earnings Per Share $0.42 - 0.57Adjusted Diluted Earnings Per Share $0.82 - 0.96Free Cash Flow Before Growth Capital $95 - $115 millionFree Cash Flow $35 - $55 millionNet Interest Expense $62 - $63 millionNet Capital Expenditures $150 - $170 millionEffective Tax Rate, Excluding Any Unusual Items 34 - 36% Q3 2021 Outlook GAAP Operating Income $31 - $37 millionAdjusted EBITDA $75 - $81 millionGAAP Diluted Earnings Per Share $0.15 - 0.21Adjusted Diluted Earnings Per Share $0.23 - 0.29

Conference CallThe Company will hold a conference call today at 9:00a.m. Eastern Time to discuss its results and respond to questions from the investment community. The conference call will be broadcast live through the Harsco Corporation website at www.harsco.com. The Company will refer to a slide presentation that accompanies its formal remarks. The slide presentation will be available on the Companys website.

The call can also be accessedby telephone by dialing (833) 651-7826 or (414)238-0989. Enter Conference ID number 2147976.

Forward-Looking StatementsThe nature of the Company's business, together with the number of countries in which it operates, subject it to changing economic, competitive, regulatory and technological conditions, risks and uncertainties. In accordance with the "safe harbor" provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, the Company provides the following cautionary remarks regarding important factors that, among others, could cause future results to differ materially from the results contemplated by forward-looking statements, including the expectations and assumptions expressed or implied herein. Forward-looking statements contained herein could include, among other things, statements about management's confidence in and strategies for performance; expectations for new and existing products, technologies and opportunities; and expectations regarding growth, sales, cash flows, and earnings. Forward-looking statements can be identified by the use of such terms as "may," "could," "expect," "anticipate," "intend," "believe," "likely," "estimate," "outlook," "plan" or other comparable terms.

Factors that could cause actual results to differ, perhaps materially, from those implied by forward-looking statements include, but are not limited to: (1)changes in the worldwide business environment in which the Company operates, including changes in general economic conditions or changes due to COVID-19 and governmental and market reactions to COVID-19; (2)changes in currency exchange rates, interest rates, commodity and fuel costs and capital costs; (3)changes in the performance of equity and bond markets that could affect, among other things, the valuation of the assets in the Company's pension plans and the accounting for pension assets, liabilities and expenses; (4)changes in governmental laws and regulations, including environmental, occupational health and safety, tax and import tariff standards and amounts; (5)market and competitive changes, including pricing pressures, market demand and acceptance for new products, services and technologies; (6) the Company's inability or failure to protect its intellectual property rights from infringement in one or more of the many countries in which the Company operates; (7)failure to effectively prevent, detect or recover from breaches in the Company's cybersecurity infrastructure; (8) unforeseen business disruptions in one or more of the many countries in which the Company operates due to political instability, civil disobedience, armed hostilities, public health issues or other calamities; (9) disruptions associated with labor disputes and increased operating costs associated with union organization; (10)the seasonal nature of the Company's business; (11)the Company's ability to successfully enter into new contracts and complete new acquisitions or strategic ventures in the time-frame contemplated, or at all; (12)the integration of the Company's strategic acquisitions; (13) potential severe volatility in the capital markets; (14) failure to retain key management and employees; (15)the outcome of any disputes with customers, contractors and subcontractors; (16)the financial condition of the Company's customers, including the ability of customers (especially those that may be highly leveraged, have inadequate liquidity or whose business is significantly impacted by COVID-19) to maintain their credit availability; (17) implementation of environmental remediation matters; (18) risk and uncertainty associated with intangible assets and (19) other risk factors listed from time to time in the Company's SEC reports. A further discussion of these, along with other potential risk factors, can be found in PartI, Item1A, "Risk Factors," of the Company's Annual Report on Form10-K for the year ended December31, 2020. The Company cautions that these factors may not be exhaustive and that many of these factors are beyond the Company's ability to control or predict. Accordingly, forward-looking statements should not be relied upon as a prediction of actual results. The Company undertakes no duty to update forward-looking statements except as may be required by law.

About HarscoHarsco Corporation is a global market leader providing environmental solutions for industrial and specialty waste streams and innovative technologies for the rail sector. Based in Camp Hill, PA, the 12,000-employee company operates in more than 30 countries.Harscos common stock is a component of the S&P SmallCap 600 Index and the Russell 2000 Index. Additional information can be found at www.harsco.com.

HARSCO CORPORATIONCONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Six Months Ended June 30 June 30(In thousands,except per share 2021 2020 2021 2020amounts)Revenues fromcontinuing operations:Service revenues $ 436,732 $ 345,643 $ 861,181 $ 637,232 Product revenues 133,088 101,638 237,494 208,890 Total revenues 569,820 447,281 1,098,675 846,122 Costs andexpenses from continuingoperations:Cost of services 348,509 285,941 683,015 522,549 soldCost of products 105,862 78,201 192,438 158,061 soldSelling, generaland 82,665 80,771 165,708 153,270 administrativeexpensesResearch anddevelopment 628 792 1,446 2,052 expensesOther (income) (4,063 ) (292 ) (4,975 ) 5,441 expenses, netTotal costs and 533,601 445,413 1,037,632 841,373 expensesOperating incomefrom continuing 36,219 1,868 61,043 4,749 operationsInterest income 638 816 1,223 1,009 Interest expense (15,986 ) (14,953 ) (32,850 ) (27,602 ) Unused debtcommitment fees,amendment fees (50 ) (1,432 ) (5,308 ) (1,920 ) and loss onextinguishmentof debtDefined benefit 3,974 1,723 7,927 3,312 pension incomeIncome (loss)from continuingoperations 24,795 (11,978 ) 32,035 (20,452 ) before incometaxes and equityincomeIncome taxbenefit(expense) from (8,564 ) 2,304 (12,793 ) 2,986 continuingoperationsEquity income(loss) of (76 ) 71 (195 ) 167 unconsolidatedentities, netIncome (loss)from continuing 16,155 (9,603 ) 19,047 (17,299 ) operationsDiscontinued operations:Gain (loss) onsale of ? (91 ) ? 18,371 discontinuedbusinessIncome (loss)from (1,451 ) 524 (3,242 ) 299 discontinuedbusinessesIncome taxbenefit(expense) from 376 (285 ) 840 (9,599 ) discontinuedbusinessesIncome (loss)fromdiscontinued (1,075 ) 148 (2,402 ) 9,071 operations, netof taxNet income 15,080 (9,455 ) 16,645 (8,228 ) (loss)Less: Net incomeattributable to (1,692 ) (1,147 ) (3,122 ) (2,233 ) noncontrollinginterestsNet income(loss)attributable to $ 13,388 $ (10,602 ) $ 13,523 $ (10,461 ) HarscoCorporationAmounts attributable to Harsco Corporation common stockholders:Income (loss)from continuing $ 14,463 $ (10,750 ) $ 15,925 $ (19,532 ) operations, netof taxIncome (loss)fromdiscontinued (1,075 ) 148 (2,402 ) 9,071 operations, netof taxNet income(loss)attributable toHarsco $ 13,388 $ (10,602 ) $ 13,523 $ (10,461 ) CorporationcommonstockholdersWeighted-averageshares of common 79,265 78,987 79,177 78,874 stockoutstandingBasic earnings (loss) per common share attributable to Harsco Corporationcommon stockholders:Continuing $ 0.18 $ (0.14 ) $ 0.20 $ (0.25 ) operationsDiscontinued (0.01 ) ? (0.03 ) 0.12 operationsBasic earnings(loss) per shareattributable toHarsco $ 0.17 $ (0.13 ) (a) $ 0.17 $ (0.13 ) CorporationcommonstockholdersDilutedweighted-averageshares of common 80,774 78,987 80,397 78,874 stockoutstandingDiluted earnings (loss) per common share attributable to Harsco Corporationcommon stockholders:Continuing $ 0.18 $ (0.14 ) $ 0.20 $ (0.25 ) operationsDiscontinued (0.01 ) ? (0.03 ) 0.12 operationsDiluted earnings(loss) per shareattributable toHarsco $ 0.17 $ (0.13 ) (a) $ 0.17 $ (0.13 ) Corporationcommonstockholders

HARSCO CORPORATION CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands) June 30 December 31 2021 2020ASSETS Current assets: Cash and cash equivalents $ 77,870 $ 76,454 Restricted cash 4,417 3,215 Trade accounts receivable, net 424,185 407,390 Other receivables 38,316 34,253 Inventories 157,616 173,013 Current portion of contract assets 85,236 54,754 Prepaid expenses 58,416 56,099 Other current assets 15,300 10,645 Total current assets 861,356 815,823 Property, plant and equipment, net 672,138 668,209 Right-of-use assets, net 94,276 96,849 Goodwill 903,345 902,074 Intangible assets, net 422,906 438,565 Deferred income tax assets 10,626 15,274 Other assets 57,452 56,493 Total assets $ 3,022,099 $ 2,993,287 LIABILITIES Current liabilities: Short-term borrowings $ 7,202 $ 7,450 Current maturities of long-term debt 8,514 13,576 Accounts payable 206,180 218,039 Accrued compensation 49,960 45,885 Income taxes payable 7,856 3,499 Current portion of advances on contracts 54,017 39,917 Current portion of operating lease 24,056 24,862 liabilitiesOther current liabilities 193,128 184,727 Total current liabilities 550,913 537,955 Long-term debt 1,327,588 1,271,189 Retirement plan liabilities 193,421 231,335 Advances on contracts 15,934 45,017 Operating lease liabilities 68,484 69,860 Environmental liabilities 29,046 29,424 Deferred tax liabilities 31,312 40,653 Other liabilities 56,018 54,455 Total liabilities 2,272,716 2,279,888 HARSCO CORPORATION STOCKHOLDERS? EQUITY Common stock 144,836 144,288 Additional paid-in capital 209,992 204,078 Accumulated other comprehensive loss (626,206 ) (645,741 ) Retained earnings 1,811,282 1,797,759 Treasury stock (846,401 ) (843,230 ) Total Harsco Corporation stockholders? 693,503 657,154 equityNoncontrolling interests 55,880 56,245 Total equity 749,383 713,399 Total liabilities and equity $ 3,022,099 $ 2,993,287

HARSCO CORPORATIONCONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

Three Months Ended Six Months Ended June 30 June 30(In thousands) 2021 2020 2021 2020Cash flowsfrom operating activities:Net income $ 15,080 $ (9,455 ) $ 16,645 $ (8,228 ) (loss)Adjustments to reconcile net income (loss) to net cash provided by operatingactivities:Depreciation 32,156 31,579 64,904 61,512 Amortization 8,816 9,115 17,783 15,672 Deferredincome tax (2,986 ) (5,067 ) (6,407 ) (655 ) benefitEquity in(income) lossof 76 (71 ) 195 (167 ) unconsolidatedentities, netLoss (gain) onsale from ? 91 ? (18,371 ) discontinuedbusinessLoss on earlyextinguishment ? ? 2,668 ? of debtOther, net (3,277 ) (237 ) (2,149 ) (2,244 ) Changes inassets andliabilities,net of acquisitionsanddispositionsof businesses:Accounts (7,038 ) 38,584 (23,484 ) 16,534 receivableInventories 15,049 (254 ) 15,456 (16,666 ) Contract (18,796 ) (8,623 ) (37,866 ) (28,934 ) assetsRight-of-use 7,129 8,405 13,897 11,834 assetsAccounts (4,899 ) (20,427 ) (13,491 ) (8,119 ) payableAccruedinterest 7,183 6,951 (137 ) (2,940 ) payableAccrued 6,242 (2,015 ) 4,701 (4,767 ) compensationAdvances on (3,653 ) (4,628 ) (13,351 ) 35,836 contractsOperatinglease (6,756 ) (8,238 ) (13,506 ) (11,596 ) liabilitiesRetirementplan (8,591 ) (3,492 ) (27,858 ) (19,026 ) liabilities,netIncome taxespayable - Gainon sale of ? (376 ) ? 3,467 discontinuedbusinessesOther assetsand 968 1,215 15,530 (1,621 ) liabilitiesNet cashprovided by 36,703 33,057 13,530 21,521 operatingactivitiesCash flowsfrom investing activities:Purchases ofproperty, (41,264 ) (23,319 ) (68,646 ) (51,213 ) plant andequipmentPurchase ofbusinesses, ? (438,447 ) ? (442,604 ) net of cashacquiredProceeds fromsale of ? ? ? 37,219 discontinuedbusiness, netProceeds fromsales of 6,180 1,767 10,042 3,952 assetsExpendituresfor intangible (64 ) 16 (132 ) (42 ) assetsProceeds fromnote 6,400 ? 6,400 ? receivableNet proceeds(payments)fromsettlement offoreign 449 (10,562 ) (978 ) 765 currencyforwardexchangecontractsOtherinvesting 87 59 133 59 activities,netNet cash usedby investing (28,212 ) (470,486 ) (53,181 ) (451,864 ) activitiesCash flowsfrom financing activities:Short-termborrowings, 3,869 (1,020 ) 4,444 2,677 netCurrentmaturities and long-termdebt:Additions 30,645 475,726 465,518 528,601 Reductions (38,951 ) (23,697 ) (413,481 ) (62,406 ) Dividends paidto (3,094 ) ? (3,094 ) ? noncontrollinginterestsStock-basedcompensation - (687 ) (656 ) (3,172 ) (4,093 ) Employee taxespaidDeferredfinancing (1,303 ) (296 ) (7,828 ) (1,928 ) costsOtherfinancing (201 ) (1,371 ) (601 ) (1,371 ) activities,netNet cashprovided(used) by (9,722 ) 448,686 41,786 461,480 financingactivitiesEffect ofexchange ratechanges oncash and cash 1,193 4,006 483 (6,818 ) equivalents,includingrestrictedcashNet increase(decrease) incash and cashequivalents, (38 ) 15,263 2,618 24,319 includingrestrictedcashCash and cashequivalents,includingrestricted 82,325 68,788 79,669 59,732 cash, atbeginning ofperiodCash and cashequivalents,including $ 82,287 $ 84,051 $ 82,287 $ 84,051 restrictedcash, at endof period

HARSCO CORPORATIONREVIEW OF OPERATIONS BY SEGMENT (Unaudited)

Three Months Ended Three Months Ended June 30, 2021 June 30, 2020 Operating Operating(In thousands) Revenues Income Revenues Income (Loss) (Loss)Harsco Environmental $ 272,546 $ 30,223 $ 203,991 $ 13,563 Harsco Clean Earth 196,128 7,386 161,579 (202 ) Harsco Rail 101,146 8,912 81,711 8,631 Corporate ? (10,302 ) ? (20,124 ) Consolidated Totals $ 569,820 $ 36,219 $ 447,281 $ 1,868 Six Months Ended Six Months Ended June 30, 2021 June 30, 2020 Operating Operating(In thousands) Revenues Income Revenues Income (Loss) (Loss)Harsco Environmental $ 530,532 $ 56,158 $ 445,550 $ 24,083 Harsco Clean Earth 385,407 10,564 240,391 4,043 (a)Harsco Rail 182,736 13,576 160,181 15,103 Corporate ? (19,255 ) ? (38,480 ) Consolidated Totals $ 1,098,675 $ 61,043 $ 846,122 $ 4,749

(a) The Company's acquisition of ESOL closed on April 6, 2020.

HARSCO CORPORATIONRECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE FROM CONTINUINGOPERATIONS TO DILUTED EARNINGS (LOSS) PER SHARE FROM CONTINUING OPERATIONS ASREPORTED (Unaudited)

Three Months Ended Six Months Ended June 30 June 30 2021 2020 2021 2020Diluted earnings(loss) per share from $ 0.18 $ (0.14 ) $ 0.20 $ (0.25 ) continuing operationsas reportedCorporate unused debtcommitment fees,amendment fees and ? 0.02 0.07 0.02 loss onextinguishment ofdebt (a)Corporate strategic 0.02 ? 0.02 ? costs (b)Corporate acquisitionand integration costs ? 0.22 ? 0.39 (c)Harsco EnvironmentalSegment severance ? ? ? 0.07 costs (d)Taxes on above (0.01 ) (0.05 ) (0.02 ) (0.08 ) unusual items (e)Adjusted dilutedearnings per sharefrom continuing 0.20 (g) 0.05 0.27 0.15 operations, includingacquisitionamortization expenseAcquisitionamortization expense, 0.08 0.08 0.16 0.14 net of tax (f)Adjusted dilutedearnings per share $ 0.28 $ 0.13 $ 0.43 $ 0.29 from continuingoperations

Costs at Corporate associated with amending the Company's existing Senior Secured Credit Facilities to establish a New Term Loan the proceeds of which were used to repay in full the outstanding Term Loan A and Term Loan B, to extend the maturity date of the Revolving Credit(a) Facility and to increase certain levels set forth in the total net leverage ratio covenant (Q2 2021 $0.1 million pre-tax; six months 2021 $5.3 million pre-tax) and costs associated with amending the Company's existing Senior secured Credit Facilities, to increase the net debt to consolidated adjusted EBITDA covenant ratio (Q2 2020 $1.4 million pre-tax; six months 2020 $1.9 million pre-tax). Certain strategic costs incurred at Corporate associated with supporting(b) and executing the Company's growth strategy (Q2 and six months 2021 $1.7 million pre-tax).(c) Acquisition and integration costs at Corporate (Q2 2020 $17.2 million pre-tax; six months 2020 $30.9 million pre-tax).(d) Harsco Environmental Segment severance costs (six months 2020 $5.2 million pre-tax). Unusual items are tax-effected at the global effective tax rate, before(e) 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 $8.2 million pre-tax and $16.4(f) million pre-tax for Q2 and six months 2021, respectively; and $8.4 million pre-tax and $14.3 million pre-tax for Q2 and six months 2020, respectively.(g) Does not total due to rounding.

The Companys 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 Companys historical and future prospects. Exclusion of unusual items permits evaluation and comparison of results for the Companys core business operations, and it is on this basis that management internally assesses the Companys performance. Exclusion of acquisition-related intangible asset amortization expense, the amount of which can vary by the timing, size and nature of the Companys acquisitions, facilitates more consistent internal comparisons of operating results over time between the Companys 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.

HARSCO CORPORATIONRECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE FROM CONTINUINGOPERATIONS TO DILUTED LOSS PER SHARE FROM CONTINUING OPERATIONS AS REPORTED(Unaudited)

Three Months Ended March 31 2021 Diluted income per share from continuing operations as $ 0.02 reportedCorporate unused debt commitment fees, amendment fees and 0.07 loss on extinguishment of debt (a)Taxes on above unusual items (b) (0.01 ) Adjusted diluted loss per share from continuing 0.07 (d)operations, including acquisition amortization expenseAcquisition amortization expense, net of tax (c) 0.08 Adjusted diluted earnings per share from continuing $ 0.15 operations

Costs at Corporate associated with amending the Company's existing Senior Secured Credit Facilities to establish a New Term Loan the(a) proceeds of which were used to repay in full the outstanding Term Loan A and Term Loan B, to extend the maturity date of the Revolving Credit Facility and to increase certain levels set forth in the total net leverage ratio covenant ($5.3 million pre-tax). Unusual items are tax-effected at the global effective tax rate, before(b) 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.(c) Acquisition amortization expense was $8.2 million pre-tax.(d) Does not total due to rounding.

The Companys 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 Companys historical and future prospects. Exclusion of unusual items permits evaluation and comparison of results for the Companys core business operations, and it is on this basis that management internally assesses the Companys performance. Exclusion of acquisition-related intangible asset amortization expense, the amount of which can vary by the timing, size and nature of the Companys acquisitions, facilitates more consistent internal comparisons of operating results over time between the Companys 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.

HARSCO CORPORATIONRECONCILIATION OF PROJECTED ADJUSTED DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS TO DILUTED EARNINGS PER SHARE FROM CONTINUINGOPERATIONS (Unaudited) Projected Projected Three Months Ending Twelve Months Ending September 30 December 31 2021 2021 Low High Low High Diluted earnings per share $ 0.15 $ 0.21 $ 0.42 $ 0.57 from continuing operationsCorporate unused debtcommitment fees, amendment ? ? 0.07 0.07 fees and loss onextinguishment of debtCorporate strategic costs ? ? 0.02 0.02 Taxes on above unusual ? ? (0.02 ) (0.02 ) itemsAdjusted diluted earningsper share from continuingoperations, including 0.15 0.21 0.49 0.64 acquisition amortizationexpenseEstimated acquisitionamortization expense, net 0.08 0.08 0.33 0.33 of taxAdjusted diluted earningsper share from continuing $ 0.23 $ 0.29 $ 0.82 $ 0.96 (a)operations

(a) Does not total due to rounding.

The Companys 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 Companys historical and future prospects. Exclusion of acquisition-related intangible asset amortization expense, the amount of which can vary by the timing, size and nature of the Companys acquisitions, facilitates more consistent internal comparisons of operating results over time between the Companys 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.

HARSCO CORPORATIONRECONCILIATION OF ADJUSTED EBITDA BY SEGMENT TO OPERATING INCOME (LOSS) ASREPORTED BY SEGMENT (Unaudited)

(In Harsco Harsco Harsco Consolidatedthousands) Environmental Clean Rail Corporate Totals Earth Three Months Ended June 30, 2021:Operatingincome $ 30,223 $ 7,386 $ 8,912 $ (10,302 ) $ 36,219 (loss) asreportedCorporatestrategic ? ? ? 1,681 1,681 costsOperatingincome(loss) 30,223 7,386 8,912 (8,621 ) 37,900 excludingunusualitemsDepreciation 25,550 4,905 1,207 494 32,156 Amortization 2,035 6,063 85 ? 8,183 Adjusted $ 57,808 $ 18,354 $ 10,204 $ (8,127 ) $ 78,239 EBITDARevenues as $ 272,546 $ 196,128 $ 101,146 $ 569,820 reportedAdjustedEBITDA 21.2 % 9.4 % 10.1 % 13.7 %margin (%) Three Months Ended June 30, 2020:Operatingincome $ 13,563 $ (202 ) $ 8,631 $ (20,124 ) $ 1,868 (loss) asreportedCorporateacquisitionand ? ? ? 17,176 17,176 integrationcostsOperatingincome(loss) 13,563 (202 ) 8,631 (2,948 ) 19,044 excludingunusualitemsDepreciation 24,663 5,138 1,257 521 31,579 Amortization 1,921 6,347 83 ? 8,351 Adjusted $ 40,147 $ 11,283 $ 9,971 $ (2,427 ) $ 58,974 EBITDARevenues as $ 203,991 $ 161,579 $ 81,711 $ 447,281 reportedAdjustedEBITDA 19.7 % 7.0 % 12.2 % 13.2 %margin (%)

Consolidated Adjusted EBITDA is a non-GAAP financial measure and consists of income from continuing operations adjusted to add back income tax expense; equity income of unconsolidated entities, net; net interest expense; defined benefit pension income (expense); unused debt commitment fees, amendment fees and loss on extinguishment of debt; and depreciation and amortization (excluding amortization of deferred financing costs); and excludes unusual items. Segment Adjusted EBITDA consists of operating income from continuing operations adjusted to exclude unusual items and add back depreciation and amortization (excluding amortization of deferred financing costs). The sum of the Segments Adjusted EBITDA and Corporate Adjusted EBITDA equals Consolidated Adjusted EBITDA. The Companys management believes Adjusted EBITDA is meaningful to investors because management reviews Adjusted EBITDA in assessing and evaluating performance. However, this measure should be considered in addition to, rather than as a substitute for, net income from continuing operations, operating income from continuing operations and other information provided in accordance with GAAP. The Company's method of calculating Adjusted EBITDA may differ from methods used by other companies and, as a result, Adjusted EBITDA may not be comparable to other similarly titled measures disclosed by other companies.

HARSCO CORPORATIONRECONCILIATION OF ADJUSTED EBITDA BY SEGMENT TO OPERATING INCOME (LOSS) ASREPORTED BY SEGMENT (Unaudited)

(In Harsco Harsco Harsco Consolidatedthousands) Environmental Clean Rail Corporate Totals Earth (a) Six Months Ended June 30, 2021:Operatingincome (loss) $ 56,158 $ 10,564 $ 13,576 $ (19,255 ) $ 61,043 as reportedCorporatestrategic ? ? ? 1,681 1,681 costsOperatingincome (loss) 56,158 10,564 13,576 (17,574 ) 62,724 excludingunusual itemsDepreciation 51,267 10,242 2,418 977 64,904 Amortization 4,083 12,146 170 ? 16,399 Adjusted $ 111,508 $ 32,952 $ 16,164 $ (16,597 ) $ 144,027 EBITDARevenues as $ 530,532 $ 385,407 $ 182,736 $ 1,098,675 reportedAdjustedEBITDA margin 21.0 % 8.5 % 8.8 % 13.1 %(%) Six Months Ended June 30, 2020:Operatingincome (loss) $ 24,083 $ 4,043 $ 15,103 $ (38,480 ) $ 4,749 as reportedCorporateacquisitionand ? ? ? 30,939 30,939 integrationcostsHarscoEnvironmentalSegment 5,160 ? ? ? 5,160 severancecostsOperatingincome (loss) 29,243 4,043 15,103 (7,541 ) 40,848 excludingunusual itemsDepreciation 50,038 7,759 2,472 1,034 61,303 Amortization 3,857 10,245 167 ? 14,269 Adjusted $ 83,138 $ 22,047 $ 17,742 $ (6,507 ) $ 116,420 EBITDARevenues as $ 445,550 $ 240,391 $ 160,181 $ 846,122 reportedAdjustedEBITDA margin 18.7 % 9.2 % 11.1 % 13.8 %(%)

(a) The Company's acquisition of ESOL closed on April 6, 2020.

Consolidated Adjusted EBITDA is a non-GAAP financial measure and consists of income from continuing operations adjusted to add back income tax expense; equity income of unconsolidated entities, net; net interest expense; defined benefit pension income (expense); unused debt commitment fees, amendment fees and loss on extinguishment of debt; and depreciation and amortization (excluding amortization of deferred financing costs); and excludes unusual items. Segment Adjusted EBITDA consists of operating income from continuing operations adjusted to exclude unusual items and add back depreciation and amortization (excluding amortization of deferred financing costs). The sum of the Segments Adjusted EBITDA and Corporate Adjusted EBITDA equals Consolidated Adjusted EBITDA. The Companys management believes Adjusted EBITDA is meaningful to investors because management reviews Adjusted EBITDA in assessing and evaluating performance. However, this measure should be considered in addition to, rather than as a substitute for, net income from continuing operations, operating income from continuing operations and other information provided in accordance with GAAP. The Company's method of calculating Adjusted EBITDA may differ from methods used by other companies and, as a result, Adjusted EBITDA may not be comparable to other similarly titled measures disclosed by other companies.

HARSCO CORPORATIONRECONCILIATION OF ADJUSTED EBITDA BY SEGMENT TO OPERATING INCOME (LOSS) ASREPORTED BY SEGMENT (Unaudited)

(In Harsco Harsco Harsco Consolidatedthousands) Environmental Clean Rail Corporate Totals Earth Three Months Ended March 31, 2021:Operatingincome $ 25,935 $ 3,178 $ 4,664 $ (8,953 ) $ 24,824 (loss) asreportedDepreciation 25,717 5,337 1,211 483 32,748 Amortization 2,048 6,083 85 ? 8,216 Adjusted $ 53,700 $ 14,598 $ 5,960 $ (8,470 ) $ 65,788 EBITDARevenues as $ 257,986 $ 189,279 $ 81,590 $ 528,855 reportedAdjustedEBITDA 20.8 % 7.7 % 7.3 % 12.4 %margin (%)

Consolidated Adjusted EBITDA is a non-GAAP financial measure and consists of income from continuing operations adjusted to add back income tax expense; equity income of unconsolidated entities, net; net interest expense; defined benefit pension income (expense); unused debt commitment fees, amendment fees and loss on extinguishment of debt; and depreciation and amortization (excluding amortization of deferred financing costs); and excludes unusual items. Segment Adjusted EBITDA consists of operating income from continuing operations adjusted to exclude unusual items and add back depreciation and amortization (excluding amortization of deferred financing costs). The sum of the Segments Adjusted EBITDA and Corporate Adjusted EBITDA equals Consolidated Adjusted EBITDA. The Companys management believes Adjusted EBITDA is meaningful to investors because management reviews Adjusted EBITDA in assessing and evaluating performance. However, this measure should be considered in addition to, rather than as a substitute for, net income from continuing operations, operating income from continuing operations and other information provided in accordance with GAAP. The Company's method of calculating Adjusted EBITDA may differ from methods used by other companies and, as a result, Adjusted EBITDA may not be comparable to other similarly titled measures disclosed by other companies.

HARSCO CORPORATIONRECONCILIATION OF CONSOLIDATED ADJUSTED EBITDA TO CONSOLIDATED INCOME (LOSS)FROM CONTINUING OPERATIONS AS REPORTED (Unaudited)

Three Months Ended June 30(In thousands) 2021 2020Consolidated income (loss) from continuing $ 16,155 $ (9,603 ) operations Add back (deduct): Equity in (income) loss of unconsolidated 76 (71 ) entities, netIncome tax (benefit) expense 8,564 (2,304 ) Defined benefit pension income (3,974 ) (1,723 ) Unused debt commitment fees, amendment fees and 50 1,432 loss on extinguishment of debtInterest expense 15,986 14,953 Interest income (638 ) (816 ) Depreciation 32,156 31,579 Amortization 8,183 8,351 Unusual items: Corporate strategic costs 1,681 ? Corporate acquisition and integration costs ? 17,176 Consolidated Adjusted EBITDA $ 78,239 $ 58,974

Consolidated Adjusted EBITDA is a non-GAAP financial measure and consists of income from continuing operations adjusted to add back income tax expense; equity income of unconsolidated entities, net; net interest expense; defined benefit pension income (expense); unused debt commitment fees, amendment fees and loss on extinguishment of debt; and depreciation and amortization (excluding amortization of deferred financing costs); and excludes unusual items. Segment Adjusted EBITDA consists of operating income from continuing operations adjusted to exclude unusual items and add back depreciation and amortization (excluding amortization of deferred financing costs). The sum of the Segments Adjusted EBITDA and Corporate Adjusted EBITDA equals Consolidated Adjusted EBITDA. The Companys management believes Adjusted EBITDA is meaningful to investors because management reviews Adjusted EBITDA in assessing and evaluating performance. However, this measure should be considered in addition to, rather than as a substitute for, net income from continuing operations, operating income from continuing operations and other information provided in accordance with GAAP. The Company's method of calculating Adjusted EBITDA may differ from methods used by other companies and, as a result, Adjusted EBITDA may not be comparable to other similarly titled measures disclosed by other companies.

HARSCO CORPORATIONRECONCILIATION OF CONSOLIDATED ADJUSTED EBITDA TO CONSOLIDATED INCOME (LOSS)FROM CONTINUING OPERATIONS AS REPORTED (Unaudited)

Six Months Ended June 30(In thousands) 2021 2020Consolidated income (loss) from continuing 19,047 $ (17,299 ) operations Add back (deduct): Equity in (income) loss of unconsolidated 195 (167 ) entities, netIncome tax expense (benefit) 12,793 (2,986 ) Defined benefit pension income (7,927 ) (3,312 ) Unused debt commitment and amendment fees 5,308 1,920 Interest expense 32,850 27,602 Interest income (1,223 ) (1,009 ) Depreciation 64,904 61,303 Amortization 16,399 14,269 Unusual items: Corporate strategic costs 1,681 ? Corporate acquisition and integration costs ? 30,939 Harsco Environmental Segment severance costs ? 5,160 Consolidated Adjusted EBITDA $ 144,027 $ 116,420

Consolidated Adjusted EBITDA is a non-GAAP financial measure and consists of income from continuing operations adjusted to add back income tax expense; equity income of unconsolidated entities, net; net interest expense; defined benefit pension income (expense); unused debt commitment fees, amendment fees and loss on extinguishment of debt; and depreciation and amortization (excluding amortization of deferred financing costs); and excludes unusual items. Segment Adjusted EBITDA consists of operating income from continuing operations adjusted to exclude unusual items and add back depreciation and amortization (excluding amortization of deferred financing costs). The sum of the Segments Adjusted EBITDA and Corporate Adjusted EBITDA equals Consolidated Adjusted EBITDA. The Companys management believes Adjusted EBITDA is meaningful to investors because management reviews Adjusted EBITDA in assessing and evaluating performance. However, this measure should be considered in addition to, rather than as a substitute for, net income from continuing operations, operating income from continuing operations and other information provided in accordance with GAAP. The Company's method of calculating Adjusted EBITDA may differ from methods used by other companies and, as a result, Adjusted EBITDA may not be comparable to other similarly titled measures disclosed by other companies.

HARSCO CORPORATIONRECONCILIATION OF CONSOLIDATED ADJUSTED EBITDA TO CONSOLIDATED INCOME FROMCONTINUING OPERATIONS AS REPORTED (Unaudited)

Three Months Ended March 31(In thousands) 2021Consolidated income from continuing operations $ 2,892 Add back (deduct): Equity in income of unconsolidated entities, net 119 Income tax expense 4,229 Defined benefit pension income (3,953 ) Unused debt commitment fees, amendment fees and loss on 5,258 extinguishment of debtInterest expense 16,864 Interest income (585 ) Depreciation 32,748 Amortization 8,216 Consolidated Adjusted EBITDA $ 65,788

Consolidated Adjusted EBITDA is a non-GAAP financial measure and consists of income from continuing operations adjusted to add back income tax expense; equity income of unconsolidated entities, net; net interest expense; defined benefit pension income (expense); unused debt commitment fees, amendment fees and loss on extinguishment of debt; and depreciation and amortization (excluding amortization of deferred financing costs); and excludes unusual items. Segment Adjusted EBITDA consists of operating income from continuing operations adjusted to exclude unusual items and add back depreciation and amortization (excluding amortization of deferred financing costs). The sum of the Segments Adjusted EBITDA and Corporate Adjusted EBITDA equals Consolidated Adjusted EBITDA. The Companys management believes Adjusted EBITDA is meaningful to investors because management reviews Adjusted EBITDA in assessing and evaluating performance. However, this measure should be considered in addition to, rather than as a substitute for, net income from continuing operations, operating income from continuing operations and other information provided in accordance with GAAP. The Company's method of calculating Adjusted EBITDA may differ from methods used by other companies and, as a result, Adjusted EBITDA may not be comparable to other similarly titled measures disclosed by other companies.

HARSCO CORPORATIONRECONCILIATION OF PROJECTED CONSOLIDATED ADJUSTED EBITDA TO PROJECTED CONSOLIDATED INCOME FROM CONTINUING OPERATIONS(Unaudited) Projected Projected Three Months Ending Twelve Months Ending September 30 December 31 2021 2021 (In millions) Low High Low High Consolidatedincome from $ 13 $ 19 $ 46 $ 58 continuingoperations Add back: Income tax 5 7 26 30 expenseNet interest 16 15 63 62 Defined benefit (4 ) (4 ) (14 ) (14 ) pension incomeDepreciationand 44 44 175 175 amortization Consolidated $ 75 (a) $ 81 $ 295 (a) $ 310 (a)Adjusted EBITDA

(a) Does not total due to rounding.

Consolidated Adjusted EBITDA is a non-GAAP financial measure and consists of income from continuing operations adjusted to add back income tax expense; equity income of unconsolidated entities, net; net interest expense; defined benefit pension income (expense); unused debt commitment fees, amendment fees and loss on extinguishment of debt; and depreciation and amortization (excluding amortization of deferred financing costs); and excludes unusual items. Segment Adjusted EBITDA consists of operating income from continuing operations adjusted to exclude unusual items and add back depreciation and amortization (excluding amortization of deferred financing costs). The sum of the Segments Adjusted EBITDA and Corporate Adjusted EBITDA equals Consolidated Adjusted EBITDA. The Companys management believes Adjusted EBITDA is meaningful to investors because management reviews Adjusted EBITDA in assessing and evaluating performance. However, this measure should be considered in addition to, rather than as a substitute for, net income from continuing operations, operating income from continuing operations and other information provided in accordance with GAAP. The Company's method of calculating Adjusted EBITDA may differ from methods used by other companies and, as a result, Adjusted EBITDA may not be comparable to other similarly titled measures disclosed by other companies.

HARSCO CORPORATIONRECONCILIATION OF FREE CASH FLOW TO NET CASH PROVIDED BY OPERATING ACTIVITIES (Unaudited)

Three Months Ended Six Months Ended June 30 June 30(In thousands) 2021 2020 2021 2020Net cash providedby operating $ 36,703 $ 33,057 $ 13,530 $ 21,521 activitiesLess capital (41,264 ) (23,319 ) (68,646 ) (51,213 ) expendituresLess expendituresfor intangible (64 ) 16 (132 ) (42 ) assetsPlus capitalexpenditures for 926 225 1,798 1,364 strategic ventures(a)Plus total proceedsfrom sales of 6,180 1,767 10,042 3,952 assets (b)Plustransaction-related 3,920 5,961 18,004 15,940 expenditures (c)Plus taxes paid on ? 376 ? 376 sale of businessFree cash flow $ 6,401 $ 18,083 $ (25,404 ) $ (8,102 )

Capital expenditures for strategic ventures represent the partner?s share(a) of capital expenditures in certain ventures consolidated in the Company?s condensed consolidated financial statements.(b) Asset sales are a normal part of the business model, primarily for the Harsco Environmental Segment. Expenditures directly related to the Company's acquisition and(c) divestiture transactions and costs at Corporate associated with amending the Company's existing Senior Secured Credit Facilities.

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.

HARSCO CORPORATIONRECONCILIATION OF PROJECTED FREE CASH FLOW TO PROJECTED NET CASH PROVIDED BYOPERATING ACTIVITIES (Unaudited)

Projected Twelve Months Ending December 31 2021(In millions) Low HighNet cash provided by operating activities $ 167 $ 207 Less capital expenditures (162 ) (183 ) Plus total proceeds from asset sales and capital 12 13 expenditures for strategic venturesPlus transaction related expenditures 18 18 Free cash flow 35 55 Add growth capital expenditures 60 60 Free cash flow before growth capital expenditures $ 95 $ 115

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.

Investor Contact Media ContactDavid Martin Jay Cooney717.612.5628 717.730.3683damartin@harsco.com jcooney@harsco.com