Ecovyst, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Reportable Segments (Tables)

Reportable Segments (Tables)

9 Months Ended

Sep. 30, 2021

Reconciliation of Revenue from Reportable Segments to Consolidated

Summarized financial information for the Company’s reportable segments is shown in the following table:


	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Sales:
Ecoservices	$	137,550	$	107,604	$	358,509	$	298,727
Catalyst Technologies(1)	29,878		23,071		82,495		73,143

Total	$	167,428	$	130,675	$	441,004	$	371,870

Segment Adjusted EBITDA:(2)
Ecoservices	$	51,920	$	44,272	$	125,372	$	116,451
Catalyst Technologies(3)	25,441		11,762		64,623		59,741


Total Segment Adjusted EBITDA(4)	$	77,361	$	56,034	$	189,995	$	176,192

(1)Excludes the Company’s proportionate share of sales from the Zeolyst International and Zeolyst C.V. joint ventures (collectively, the “Zeolyst Joint Venture”) accounted for using the equity method (see Note 11 to these condensed consolidated financial statements for further information). The proportionate share of sales is $32,820 and $26,552 for the three months ended September 30, 2021 and 2020, respectively. The proportionate share of sales is $94,984 and $99,695 for the nine months ended September 30, 2021 and 2020, respectively.

(2)The Company defines Adjusted EBITDA as EBITDA adjusted for certain items as noted in the reconciliation below. Management evaluates the performance of its segments and allocates resources based on several factors, of which the primary measure is Adjusted EBITDA. Adjusted EBITDA should not be considered as an alternative to net income as an indicator of the Company’s operating performance. Adjusted EBITDA as defined by the Company may not be comparable with EBITDA or Adjusted EBITDA as defined by other companies.

(3)The Adjusted EBITDA from the Zeolyst Joint Venture included in the Catalyst Technologies segment is $14,493 for the three months ended September 30, 2021, which includes $8,780 of equity in net income plus $1,601 of amortization of investment in affiliate step-up and $4,112 of joint venture depreciation, amortization and interest. The Adjusted EBITDA from the Zeolyst Joint Venture included in the Catalyst Technologies segment is $5,331 for the three months ended September 30, 2020, which includes $76 of equity in net income plus $1,658 of amortization of investment in affiliate step-up and $3,597 of joint venture depreciation, amortization and interest.

The Adjusted EBITDA from the Zeolyst Joint Venture included in the Catalyst Technologies segment is $37,085 for the nine months ended September 30, 2021, which includes $20,794 of equity in net income plus $4,879 of amortization of investment in affiliate step-up and $11,412 of joint venture depreciation, amortization and interest. The Adjusted EBITDA from the Zeolyst Joint Venture included in the Catalyst Technologies segment is $35,911 for the nine months ended September 30, 2020, which includes $19,882 of equity in net income plus $4,975 of amortization of investment in affiliate step-up and $11,054 of joint venture depreciation, amortization and interest.

(4)Total Segment Adjusted EBITDA differs from the Company’s consolidated Adjusted EBITDA due to unallocated corporate expenses.

Reconciliation of Net Income (Loss) to Segment Adjusted EBITDA

A reconciliation of net income (loss) from continuing operations to Segment Adjusted EBITDA is as follows:


	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Reconciliation of net income (loss) from continuing operations to Segment Adjusted EBITDA
Net income (loss) from continuing operations	$	4,689	$	(22,659)	$	(5,929)	$	8,311
Provision (benefit) for income taxes	2,591		21,310		5,095		(4,985)
Interest expense, net	9,005		10,430		28,202		40,864
Depreciation and amortization	20,599		19,122		60,084		56,543
EBITDA	36,884		28,203		87,452		100,733
Joint venture depreciation, amortization and interest	4,112		3,597		11,412		11,054
Amortization of investment in affiliate step-up	1,601		1,659		4,879		4,975

Debt extinguishment costs	15,185		14,004		26,902		16,517
Net loss on asset disposals	2,156		642		4,535		1,245
Foreign exchange losses (gains)	922		(4,286)		4,803		(577)
LIFO benefit	(1,295)		(1,261)		(1,998)		(4,902)

Transaction and other related costs	538		197		1,620		1,389
Equity-based compensation	10,193		4,387		22,837		13,324
Restructuring, integration and business optimization expenses	78		250		2,408		1,445
Defined benefit pension plan benefit	(1,029)		(155)		(2,219)		(466)
Other	30		784		1,723		1,959
Adjusted EBITDA	69,375		48,021		164,354		146,696
Unallocated corporate expenses	7,986		8,013		25,641		29,496
Segment Adjusted EBITDA	$	77,361	$	56,034	$	189,995	$	176,192