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Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2022
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
Commission File Number: 001-38221
Ecovyst Inc.
Delaware 81-3406833
(State or other jurisdiction of
incorporation or organization)
 (I.R.S. Employer
Identification No.)
 
300 Lindenwood Drive 
Malvern, Pennsylvania
19355
(Address of principal executive offices) (Zip Code)
(484)
617-1200
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading symbolName of each exchange on which registered
Common stock, par value $0.01 per shareECVTNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes     No  ☒
The number of shares of common stock outstanding as of October 31, 2022 was 130,253,152.
1

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Ecovyst Inc.

INDEX—FORM 10-Q
September 30, 2022
Page

2

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PART IFINANCIAL INFORMATION

ITEM 1.     FINANCIAL STATEMENTS (UNAUDITED)

ECOVYST INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share and per share amounts)
(unaudited)
 
Three months ended
September 30,
Nine months ended
September 30,
2022202120222021
Sales$232,533 $167,428 $637,419 $441,004 
Cost of goods sold164,864 113,784 462,156 318,768 
Gross profit67,669 53,644 175,263 122,236 
Selling, general and administrative expenses21,460 24,836 67,779 68,822 
Other operating expense, net7,673 6,314 25,101 16,786 
Operating income38,536 22,494 82,383 36,628 
Equity in net (income) from affiliated companies(3,169)(8,758)(17,422)(20,723)
Interest expense, net9,542 9,005 26,880 28,202 
Debt extinguishment costs 15,185  26,902 
Other expense (income), net1,872 (218)2,497 3,081 
Income (loss) from continuing operations before income taxes and noncontrolling interest30,291 7,280 70,428 (834)
Provision for income taxes8,966 2,591 21,983 5,095 
Net income (loss) from continuing operations21,325 4,689 48,445 (5,929)
Net loss from discontinued operations, net of tax (75,872) (159,122)
Net income (loss)21,325 (71,183)48,445 (165,051)
Less: Net income attributable to the noncontrolling interest—discontinued operations 76  333 
Net income (loss) attributable to Ecovyst Inc.$21,325 $(71,259)$48,445 $(165,384)
Income (loss) from continuing operations attributable to Ecovyst Inc.$21,325 $4,689 $48,445 $(5,929)
Loss from discontinued operations attributable to Ecovyst Inc. (75,948) (159,455)
Net income (loss) attributable to Ecovyst Inc.$21,325 $(71,259)$48,445 $(165,384)
Net income (loss) per share:
Basic income (loss) per share—continuing operations$0.16 $0.03 $0.36 $(0.04)
Diluted income (loss) per share—continuing operations$0.16 $0.03 $0.35 $(0.04)
Basic loss per share—discontinued operations$ $(0.56)$ $(1.17)
Diluted loss per share—discontinued operations$ $(0.55)$ $(1.17)
Basic income (loss) per share$0.16 $(0.52)$0.36 $(1.22)
Diluted income (loss) per share$0.16 $(0.52)$0.35 $(1.22)
Weighted average shares outstanding:
Basic132,622,105 136,129,591 136,115,598 136,111,555 
Diluted134,096,839 137,354,427 137,666,215 136,111,555 
See accompanying notes to condensed consolidated financial statements.

3

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ECOVYST INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands)
(unaudited)

 
Three months ended
September 30,
Nine months ended
September 30,
2022202120222021
Net income (loss)$21,325 $(71,183)$48,445 $(165,051)
Other comprehensive income (loss), net of tax:
Pension and postretirement benefits(962)4,833 (1,040)4,748 
Net gain from hedging activities9,141 460 27,620 1,638 
Foreign currency translation(7,207)(7,884)(17,506)418 
Total other comprehensive income (loss)972 (2,591)9,074 6,804 
Comprehensive income (loss)22,297 (73,774)57,519 (158,247)
Less: Comprehensive income attributable to noncontrolling interests 740  1,056 
Comprehensive income (loss) attributable to Ecovyst Inc.$22,297 $(74,514)$57,519 $(159,303)
See accompanying notes to condensed consolidated financial statements.

4

Table of Contents

ECOVYST INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
(unaudited)

September 30,
2022
December 31,
2021
ASSETS
Cash and cash equivalents$121,446 $140,889 
Accounts receivable, net106,969 80,802 
Inventories, net49,729 53,813 
Prepaid and other current assets46,070 16,165 
Total current assets324,214 291,669 
Investments in affiliated companies426,663 446,074 
Property, plant and equipment, net581,425 596,231 
Goodwill401,152 406,139 
Other intangible assets, net132,347 145,617 
Right-of-use lease assets29,712 30,115 
Other long-term assets36,282 15,374 
Total assets$1,931,795 $1,931,219 
LIABILITIES
Current maturities of long-term debt$9,000 $9,000 
Accounts payable52,026 51,860 
Operating lease liabilities—current8,576 8,306 
Accrued liabilities65,071 75,915 
Total current liabilities134,673 145,081 
Long-term debt, excluding current portion867,604 872,839 
Deferred income taxes148,022 126,749 
Operating lease liabilities—noncurrent21,024 21,719 
Other long-term liabilities20,947 24,094 
Total liabilities1,192,270 1,190,482 
Commitments and contingencies (Note 17)
EQUITY
Common stock ($0.01 par); authorized shares 450,000,000; issued shares 139,485,868 and 137,820,971 on September 30, 2022 and December 31, 2021, respectively; outstanding shares 130,100,834 and 136,938,758 on September 30, 2022 and December 31, 2021, respectively
1,395 1,378 
Preferred stock ($0.01 par); authorized shares 50,000,000; no shares issued or outstanding on September 30, 2022 and December 31, 2021
  
Additional paid-in capital1,088,704 1,073,409 
Accumulated deficit(267,262)(315,707)
Treasury stock, at cost; shares 9,385,034 and 882,213 on September 30, 2022 and December 31, 2021, respectively
(86,594)(12,551)
Accumulated other comprehensive income (loss)3,282 (5,792)
Total equity739,525 740,737 
Total liabilities and equity$1,931,795 $1,931,219 
See accompanying notes to condensed consolidated financial statements.
5

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ECOVYST INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(in thousands)
(unaudited)


Common
stock
Additional
paid-in
capital
(Accumulated deficit)Treasury
stock, at
cost 
Accumulated
other
comprehensive
income (loss)
Non-
controlling
interest
Total
Balance, December 31, 2021$1,378 $1,073,409 $(315,707)$(12,551)$(5,792)$ $740,737 
Net income— — 7,875 — —  7,875 
Other comprehensive income— — — — 11,378  11,378 
Tax withholdings on equity award vesting— — — (332)— — (332)
Stock compensation expense — 5,946 — — — — 5,946 
Shares issued under equity incentive plan, net of forfeitures18 9 — — — — 27 
Balance, March 31, 2022$1,396 $1,079,364 $(307,832)$(12,883)$5,586 $ $765,631 
Net income— — 19,245 — —  19,245 
Other comprehensive loss— — — — (3,276) (3,276)
Repurchases of common shares— — — (8,842)— — (8,842)
Stock compensation expense — 5,409 — — — — 5,409 
Shares issued under equity incentive plan, net of forfeitures 17 — — — — 17 
Balance, June 30, 2022$1,396 $1,084,790 $(288,587)$(21,725)$2,310 $ $778,184 
Net income— — 21,325 — —  21,325 
Other comprehensive income— — — — 972  972 
Repurchases of common shares— — — (64,869)— — (64,869)
Stock compensation expense— 3,872 — — — — 3,872 
Shares issued under equity incentive plan, net of forfeitures(1)42 — — — — 41 
Balance, September 30, 2022$1,395 $1,088,704 $(267,262)$(86,594)$3,282 $ $739,525 
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Common
stock
Additional
paid-in
capital
(Accumulated deficit)Treasury
stock, at
cost 
Accumulated
other
comprehensive
loss
Non-
controlling
interest 
Total 
Balance, December 31, 2020$1,371 $1,477,859 $(175,758)$(11,081)$(15,265)$53 $1,277,179 
Net (loss) income— — (92,635)— — 117 (92,518)
Other comprehensive loss— — — — (2,745)(394)(3,139)
Tax withholdings on equity award vesting— — — (1,470)— — (1,470)
Distributions to noncontrolling interests— — — — — (516)(516)
Stock compensation expense — 6,877 — — — — 6,877 
Shares issued under equity incentive plan, net of forfeitures7 63 — — — — 70 
Balance, March 31, 2021$1,378 $1,484,799 $(268,393)$(12,551)$(18,010)$(740)$1,186,483 
Net (loss) income— — (1,490)— — 140 (1,350)
Other comprehensive income— — — — 12,081 453 12,534 
Distributions to noncontrolling interests— — — — — (593)(593)
Stock compensation expense— 7,499 — — — — 7,499 
Shares issued under equity incentive plan, net of forfeitures 36 — — — — 36 
Balance, June 30, 2021$1,378 $1,492,334 $(269,883)$(12,551)$(5,929)$(740)$1,204,609 
Net (loss) income— — (71,259)— — 76 (71,183)
Other comprehensive income (loss)— — — — (3,255)664 (2,591)
Dividends paid on common stock ($3.20 per share)
— (435,593)— — — — (435,593)
Stock compensation expense— 11,961 — — — — 11,961 
Shares issued under equity incentive plan, net of forfeitures 113 — — — — 113 
Balance, September 30, 2021$1,378 $1,068,815 $(341,142)$(12,551)$(9,184)$ $707,316 
See accompanying notes to condensed consolidated financial statements.
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ECOVYST INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Nine months ended
September 30,
20222021
Cash flows from operating activities:
Net income (loss)$48,445 $(165,051)
Net loss from discontinued operations 159,122 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation48,256 49,902 
Amortization10,547 10,182 
Amortization of deferred financing costs and original issue discount1,515 1,409 
Debt extinguishment costs 12,818 
Foreign currency exchange loss2,179 4,803 
Pension and postretirement healthcare benefit(814)(1,811)
Deferred income tax provision12,454 4,256 
Net loss on asset disposals1,174 4,535 
Stock compensation17,419 22,837 
Equity in net income from affiliated companies(17,422)(20,723)
Dividends received from affiliated companies30,000 20,000 
Other, net(1,789)8,515 
Working capital changes that provided (used) cash, excluding the effect of acquisitions and dispositions:
Receivables(28,443)(33,830)
Inventories3,206 6,120 
Prepaids and other current assets(5,223)(8,405)
Accounts payable1,954 10,096 
Accrued liabilities(14,133)7,511 
Net cash provided by operating activities, continuing operations109,325 92,286 
Net cash used by operating activities, discontinued operations (7,420)
Net cash provided by operating activities109,325 84,866 
Cash flows from investing activities:
Purchases of property, plant and equipment(39,474)(44,648)
Proceeds from business divestiture, net of cash 980,350 
Payments for business divestiture, net of cash(3,744) 
Business combinations, net of cash acquired(488)(42,782)
Other, net81 (8)
Net cash (used in) provided by investing activities, continuing operations(43,625)892,912 
Net cash used in investing activities, discontinued operations (40,943)
Net cash (used in) provided by investing activities(43,625)851,969 
Cash flows from financing activities:
Issuance of long-term debt, net of discount 897,750 
Debt issuance costs (1,293)
Repayments of long-term debt(6,750)(1,428,613)
Debt prepayment fees (8,481)
Proceeds from failed sale-leaseback 14,590 
Dividends paid to stockholders (435,593)
Repurchases of common shares(73,711) 
Tax withholdings on equity award vesting(332)(1,470)
Proceeds from stock options exercised84 223 
Repayment of financing obligations(1,849)(486)
Other, net (104)
Net cash used in financing activities, continuing operations(82,558)(963,477)
Net cash used in financing activities, discontinued operations (1,144)
Net cash used in financing activities(82,558)(964,621)
Effect of exchange rate changes on cash, cash equivalents and restricted cash(2,585)(4,681)
Net change in cash and cash equivalents(19,443)(32,467)
Cash and cash equivalents at beginning of period140,889 137,219 
Cash and cash equivalents at end of period$121,446 $104,752 
For supplemental cash flow disclosures, see Note 21.
See accompanying notes to condensed consolidated financial statements.
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ECOVYST INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except share and per share amounts)
(unaudited)

1. Background and Basis of Presentation:
Description of Business
Ecovyst Inc. and subsidiaries (the “Company” or “Ecovyst”) is a leading integrated and innovative global provider of specialty catalysts and services. The Company supports customers globally through its strategically located network of manufacturing facilities. The Company believes that its products, which are predominantly inorganic, and services contribute to improving the sustainability of the environment.
On December 14, 2020, the Company completed the sale of its Performance Materials business, and on August 1, 2021, the Company completed the sale of its Performance Chemicals business. The financial results of these businesses are presented as discontinued operations in the condensed consolidated financial statements for the 2021 period presented. See Note 3 to these condensed consolidated financial statements for more information on these transactions.
The Company has two uniquely positioned specialty businesses: Ecoservices provides sulfuric acid recycling to the North American refining industry for the production of alkylate and provides on-purpose virgin sulfuric acid for water treatment, mining and industrial applications; and Catalyst Technologies provides finished silica catalysts and catalyst supports necessary to produce high strength and high stiffness plastics and, through the Zeolyst Joint Venture, supplies zeolites used for catalysts that help produce renewable fuels, remove nitrogen oxides from diesel engine emissions as well as sulfur from fuels during the refining process.
The Company’s regeneration services product group, which is a part of the Company’s Ecoservices segment, typically experiences seasonal fluctuations as a result of higher demand for gasoline products in the summer months and lower demand in the winter months. These demand fluctuations result in higher sales and working capital requirements in the second and third quarters.
The notes to the condensed consolidated financial statements, unless otherwise indicated, are on a continuing operations basis.
Basis of Presentation
The condensed consolidated financial statements included herein are unaudited. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations for interim reporting. In the opinion of management, all adjustments of a normal and recurring nature necessary to state fairly the financial position and results of operations have been included. The results of operations are not necessarily indicative of the expected results for the full year. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.
Reclassification and Correction of an Error
During the preparation of the condensed consolidated financial statements for the period ended September 30, 2022, the Company identified a presentation error in the condensed consolidated statements of comprehensive income for the 2021 comparable periods presented. The presentation of comprehensive income (loss) inadvertently omitted the release of accumulated other comprehensive income (loss) related to foreign currency translation and deferred pension and postretirement benefit plan losses in conjunction with the sale of the Company’s Performance Chemicals business. There was no impact on the condensed consolidated statements of income, condensed consolidated balance sheets and condensed consolidated statements of cash flows. The presentation of other comprehensive income (loss) for the three and nine months ended September 30, 2021, was corrected for the additional comprehensive loss of $7,093, of which $943 of comprehensive income was attributed to noncontrolling interest. Additionally, Note 6 was corrected for this presentation error. The Company assessed the materiality of the error and concluded it was not material to the Company’s previously issued financial statements, including the consolidated financial statements for the year ended December 31, 2021.
The previously disclosed disposal of business presented in accumulated other comprehensive income (loss) has been reclassified to other comprehensive income (loss) in the condensed consolidated statement of stockholders’ equity.
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ECOVYST INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except share and per share amounts)
(unaudited)
2. New Accounting Standards:
Recently Adopted Accounting Standards
In November 2021, the FASB issued guidance that requires entities to provide certain disclosures when they (1) have received government assistance and (2) use a grant or contribution accounting model by analogy to other accounting guidance. Previously, there was no guidance under GAAP on recognizing or measuring government grants to business entities. The new guidance does not provide any additional guidance on this topic; rather, it only provides guidance on required disclosures for business entities that receive government assistance and apply another grant or contribution accounting framework by analogy. The new guidance is effective for fiscal years beginning after December 15, 2021 with the new disclosures required on an annual basis, and can be applied either prospectively or retrospectively. The Company adopted the new guidance on January 1, 2022 and will include the disclosures as required in its annual reporting with respect to any government assistance or grants subject to the scope of the guidance to the extent material.
Accounting Standards Not Yet Adopted
In October 2021, the FASB issued guidance that requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with revenue recognition guidance. Under current GAAP, contract assets and contract liabilities acquired in a business combination are recorded by the acquirer at fair value. The new guidance creates an exception to the general recognition and measurement principles related to business combinations, and is expected to result in the acquirer recognizing contract assets and liabilities at the same amounts recorded by the acquiree. The new guidance is effective for business combinations occurring during fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of the new guidance, which would only be applied prospectively to business combinations upon the adoption of the guidance.
In March 2020 and January 2021, the FASB issued guidance to address certain accounting consequences from the anticipated transition from the use of the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. The new guidance contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance is optional and may be elected over time as reference rate reform activities occur. During the year ended December 31, 2020, the Company elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index of the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. During the year ended December 31, 2021, the FASB extended the guidance adoption date to June 30, 2023. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.
3. Divestitures:
Performance Materials Divestiture
Upon the close of the Performance Materials divestiture transaction on December 14, 2020, the Company entered into a Transition Services Agreement with the buyer pursuant to which the buyer received certain services to provide for the orderly transition of various functions and processes after the closing of the transaction. The services under the Transition Services Agreement included information technology, accounting, tax, financial services, human resources, facilities, and other administrative support services. These services were provided for a period of nine months, with three 30-day extensions available. The Company billed $253 and $3,314 under the Transition Services Agreement to the buyer during the three and nine months ended September 30, 2021, respectively. Those billings were included in selling, general and administrative expenses on the condensed consolidated financial statements for the nine months ended September 30, 2021.
During the three months ended September 30, 2021, the Company incurred transaction costs of $264 and stock-based compensation expense of $1,194, and an associated tax benefit of $339 related to the Performance Materials divestiture, which was included in loss from discontinued operations, net of tax. During the nine months ended September 30, 2021, the Company incurred transaction costs of $1,794 and stock-based compensation expense of $2,477, and an associated tax benefit of $1,045 related to the Performance Materials divestiture, which was included in loss from discontinued operations, net of tax.
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ECOVYST INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except share and per share amounts)
(unaudited)
Performance Chemicals Divestiture
On February 28, 2021, the Company entered into a definitive agreement to sell its Performance Chemicals business to Sparta Aggregator L.P. (the “Buyer”), a partnership established by Koch Minerals & Trading, LLC and Cerberus Capital Management, L.P., for $1,100,000, subject to certain adjustments including indebtedness, cash, working capital and transaction expenses. The Company completed the sale of the Performance Chemicals business on August 1, 2021.
Prior to the close of the transaction, the disposal group was tested for recoverability at each of the balance sheet dates subsequent to meeting the discontinued operations criteria, and the Company recognized an estimated disposal loss of $13,990 and $109,584 during the three and six months ended June 30, 2021, respectively, which was included in net loss from discontinued operations, net of tax on the condensed consolidated statement of income.
For the nine months ended September 30, 2021, the loss on the sale of the Performance Chemicals business was $157,539, which was included in net (loss) income from discontinued operations, net of tax in the Company’s condensed consolidated statements. The following is a reconciliation of the loss recorded on the sale:
Net proceeds received from the sale of the Performance Chemicals business$980,350 
Transaction costs(35,402)
Net assets derecognized(1,102,487)
Loss on sale of the Performance Chemicals business$(157,539)
During the year ended December 31, 2021, the net cash proceeds to the Company from the sale were $978,449 after certain customary adjustments for indebtedness, working capital and cash at the closing of the transaction. The final pre-tax loss on the sale was $150,230, which was included in net (loss) income from discontinued operations, net of tax in the Company’s consolidated statements of income for the year ended December 31, 2021. In March 2022, the Company made a payment to the buyer for $3,744, representing the final adjustments to the sale price. The Company classified the payment within net cash used in investing activities – continuing operations in the condensed consolidated statements of cash flows.
In connection with the sale of the Performance Chemicals business and the related loss, as noted above, the Company has recognized a tax benefit of $33,052 within net loss from discontinued operations, net of tax on the condensed consolidated statement of income.
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ECOVYST INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except share and per share amounts)
(unaudited)
The following table summarizes the results of discontinued operations related to the Performance Chemicals business for the three and nine months ended September 30, 2021:
Three months ended
September 30, 2021
Nine months ended
September 30, 2021
Sales$54,973 $389,870 
Cost of goods sold39,582 284,220 
Selling, general and administrative expenses6,552 29,758 
Goodwill impairment charge
 75,080 
Other operating (income) expense, net(18,993)10,337 
Loss on sale of the Performance Chemicals business123,035 157,539 
Operating loss(95,203)(167,064)
Equity in net (income) from affiliated companies(25)(111)
Interest expense, net (1)
1,916 10,730 
Other expense (income), net153 (6,210)
Loss from discontinued operations before income tax(97,247)(171,473)
Benefit for income taxes(22,494)(15,576)
Loss from discontinued operations, net of tax$(74,753)$(155,897)
(1)Upon the close of the transaction, the Company used a portion of the net proceeds to repay a portion of its outstanding debt amounting to $526,363. Prior to the Company’s debt refinancing in June 2021, the Company’s outstanding term loan facilities had mandatory repayment provisions. As a result, interest expense has been allocated to discontinued operations on the basis of the Company’s total repayment of $526,363.

Net income attributable to the noncontrolling interest related to the Performance Chemicals business, net of tax was $76 and $333 for the three and nine months ended September 30, 2021, respectively. Net loss attributable to Ecovyst Inc., related to the Performance Chemicals business, net of tax was $(74,829) and $(156,230) for the three and nine months ended September 30, 2021, respectively.
4. Revenue from Contracts with Customers:
Disaggregated Revenue
The Company’s primary means of disaggregating revenues is by reportable segments, which can be found in Note 18 to these condensed consolidated financial statements.
The Company’s portfolio of products is integrated into a variety of end uses, which are described in the table below.
Key End UsesKey Products
Industrial & process chemicals• Sulfur derivatives for industrial production
• Treatment services
Fuels & emission control• Refining hydrocracking catalysts
• Emission control catalysts
• Regeneration services for alkylate production
Packaging & engineered plastics• Catalysts for high-density polyethylene and chemicals syntheses
• Antiblocks for film packaging
• Sulfur derivatives for nylon production
Natural resources• Sulfur derivatives for mining
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ECOVYST INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except share and per share amounts)
(unaudited)
The following tables disaggregate the Company’s sales, by segment and end use, for the three and nine months ended September 30, 2022 and 2021:
Three months ended September 30, 2022
Ecoservices
Catalyst Technologies(2)
Total
Industrial & process chemicals$41,252 $ $41,252 
Fuels & emission control(1)
88,532  88,532 
Packaging & engineered plastics29,707 36,859 66,566 
Natural resources36,183  36,183 
Total segment sales$195,674 $36,859 $232,533 
Three months ended September 30, 2021
Ecoservices
Catalyst Technologies(2)
Total
Industrial & process chemicals$23,297 $5 $23,302 
Fuels & emission control(1)
67,644  67,644 
Packaging & engineered plastics23,315 29,873 53,188 
Natural resources23,294  23,294 
Total segment sales$137,550 $29,878 $167,428 
Nine months ended September 30, 2022
Ecoservices
Catalyst Technologies(2)
Total
Industrial & process chemicals$116,257 $ $