Ecovyst, Inc. Current report filing

Current report filing

Reportable Segments (Tables)

Reportable Segments (Tables)

12 Months Ended

Dec. 31, 2020

Reconciliation of Revenue from Reportable Segments to Consolidated

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


	Years ended December 31,
	2020		2019		2018
Sales:
Ecoservices	$	401,913	$	447,080	$	455,562
Catalyst Technologies (1)		94,007		85,667		72,099

Total	$	495,920	$	532,747	$	527,661

Segment Adjusted EBITDA: (2)
Ecoservices	$	157,198	$	175,640	$	176,499
Catalyst Technologies (3)		74,504		107,808		81,067

Total Segment Adjusted EBITDA (4)	$	231,702	$	283,448	$	257,566

(1)	Excludes the Company’s proportionate share of sales from the Zeolyst Joint Venture accounted for using the equity method. The proportionate share of sales is $128,623, $170,338 and $156,687 for the years ended December 31, 2020, 2019 and 2018, 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 $42,515 for the year ended December 31, 2020, which includes $21,157 of equity in net income plus $6,634 of amortization of investment in affiliate

step-up

plus $14,724 of joint venture depreciation, amortization and interest.

The Adjusted EBITDA from the Zeolyst Joint Venture included in the Catalyst Technologies segment is $68,138 for the year ended December 31, 2019, which includes $45,899 of equity in net income plus $7,534 of amortization of investment in affiliate

step-up

plus $14,705 of joint venture depreciation, amortization and interest.

The Adjusted EBITDA from the Zeolyst Joint Venture included in the Catalyst Technologies segment is $56,663 for the year ended December 31, 2018, which includes $37,437 of equity in net income plus $6,634 of amortization of investment in affiliate

step-up

plus $12,592 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 attributable to Ecovyst to Segment Adjusted EBITDA is as follows:


	Years ended December 31,
	2020		2019		2018
Reconciliation of net income attributable to Ecovyst Inc. to Segment Adjusted EBITDA
Net income from continuing operations	$	54,280	$	31,120	$	5,253
(Benefit) provision for income taxes		(52,065)		12,299		7,977
Interest expense, net		50,409		66,872		72,344
Depreciation and amortization		76,926		74,781		72,188

Segment EBITDA		129,550		185,072		157,762
Joint venture depreciation, amortization and interest		14,724		14,705		12,592
Amortization of investment in affiliate step-up		6,634		7,534		6,634
Debt extinguishment costs		25,028		3,400		7,751
Net loss on asset disposals		4,722		4,559		10,350
Foreign currency exchange (gain) loss		(5,264)		1,228		13,910
LIFO (benefit) expense		(5,262)		6,458		799
Transaction and other related costs		1,118		186		491
Equity-based compensation		17,194		13,281		16,899
Restructuring, integration and business optimization expenses		1,994		2,571		6,822
Defined benefit pension plan (benefit) cost		(598)		553		(223)
Gain on contract termination (1)		—		—		(20,612)
Other		2,775		638		4,955

Adjusted EBITDA		192,615		240,185		218,130
Unallocated corporate expenses		39,087		43,263		39,436

Segment Adjusted EBITDA	$	231,702	$	283,448	$	257,566

(1)	Includes the non-cash write-off of a long-term supply contract obligation (see Note 25), which was recorded as a reduction in other operating expense, net in the consolidated statement of income for the year ended December 31, 2018.

Capital Expenditures from Segment to Consolidated

Capital expenditures for the Company’s reportable segments are shown in the following table:


	Years ended December 31,
	2020		2019		2018
Capital expenditures:
Ecoservices	$	31,799	$	42,310	$	46,617
Catalyst Technologies (1)		11,177		8,984		8,390
Corporate (2)		8,622		1,243		121

Capital expenditures per the consolidated statements of cash flows	$	51,598	$	52,537	$	55,128

(1)	Excludes the Company’s proportionate share of capital expenditures from the Zeolyst Joint Venture.

(2)	Includes corporate capital expenditures, the cash impact from changes in capital expenditures in accounts payable and capitalized interest.

Revenue from External Customers by Geographic Areas

Sales and long-lived assets by geographic area are presented in the following tables. Sales are attributed to countries based upon location of products shipped.


	Years ended December 31,
	2020		2019		2018
Sales (1) :
United States	$	443,682	$	492,146	$	488,414
Other foreign countries		52,238		40,601		39,247

Total	$	495,920	$	532,747	$	527,661

(1)	Except for the United States, no sales in an individual country exceeded 10% of the Company’s total sales.

Long-lived Assets by Geographic Areas


	December 31,
	2020		2019
Long-lived assets (1) :
United States	$	555,558	$	583,700
Other foreign countries		65,095		58,540

Total	$	620,653	$	642,240

(1)	Long-lived assets includes property, plant and equipment, net and right-of-use lease assets.