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Enviri Corp to change auditors for fiscal year 2025

EditorAhmed Abdulazez Abdulkadir
Published 11/30/2024, 12:22 AM
NVRI
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Enviri Corporation (NYSE:NVRI), a service-oriented company headquartered in Philadelphia with a market capitalization of approximately $587 million, announced a forthcoming change in its independent registered public accounting firm. According to InvestingPro data, the company currently operates with a significant debt burden and faces profitability challenges, making this change in financial oversight particularly noteworthy.

According to a recent 8-K filing with the U.S. Securities and Exchange Commission, the company's current accounting firm, PricewaterhouseCoopers LLP (PwC), will not be re-elected for the fiscal year ending December 31, 2025.

The decision came after PwC opted out of participating in Enviri's strategic request-for-proposal process, which is part of the company's good corporate governance practices. This development comes at a time when the company maintains a debt-to-equity ratio of 3.23 and reported a negative return on assets of -3.33% in the last twelve months.

This process involves ongoing evaluations of the accounting firm’s qualifications, independence, and remuneration, as outlined in Enviri's audit committee charter. PwC cited an inability to meet the company's economic expectations as the reason for its withdrawal.

The 8-K filing clarified that PwC's decision was not due to any disagreements over accounting principles, practices, financial statement disclosures, or auditing scope or procedure. Furthermore, PwC's audit reports for the fiscal years ended December 31, 2023, and 2022 did not contain any adverse opinions or qualifications.

Enviri Corp has provided PwC with a copy of the 8-K report and has received a letter from PwC, dated today, confirming their agreement with the statements made in the filing. The company will announce the engagement of a new independent registered public accounting firm after the completion of the evaluation process by the Audit Committee and in compliance with SEC regulations.

The company's filing also notes that PwC will continue to serve until the filing of the Annual Report on Form 10-K for the year ending December 31, 2024. The search for a new auditor reflects Enviri Corp's commitment to maintaining robust financial oversight and transparency.

In other recent news, Enviri Corporation reported total revenues of $574 million in its latest earnings call, marking a 4% decrease from the previous year.

While the company's Clean Earth division achieved a record performance with over 20% adjusted EBITDA growth and a 17.5% EBITDA margin, the Rail segment experienced operational issues, leading to a $2 million adjusted EBITDA loss for the quarter. BMO Capital adjusted its outlook on Enviri shares, reducing the price target from $13.00 to $10.00, while maintaining a Market Perform rating. This revision reflects the firm's assessment of near-term challenges faced by the company, particularly in its Rail and HE divisions, and concerns over sluggish free cash flow.

Despite these challenges, Enviri remains optimistic about the future, expecting improved margin expansion, EBITDA, and top-line growth, particularly in the Clean Earth division. The company has adjusted its 2024 EBITDA outlook to $317 million - $327 million, with a projected negative free cash flow of $10 million for the year. Enviri's long-term strategy targets an EBITDA exceeding $400 million by 2027, with free cash flow projected at over $150 million.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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