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, 2022

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,
	2022		2021		2022		2021
Sales:
Ecoservices	$	195,674	$	137,550	$	542,703	$	358,509
Catalyst Technologies(1)	36,859		29,878		94,716		82,495

Total	$	232,533	$	167,428	$	637,419	$	441,004

Adjusted EBITDA:(2)
Ecoservices	$	64,110	$	51,920	$	173,435	$	125,372
Catalyst Technologies(3)	19,272		25,441		57,676		64,623
Unallocated corporate expenses	(7,945)		(7,986)		(23,543)		(25,641)
Total	$	75,437	$	69,375	$	207,568	$	164,354

(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 excluded is $27,773 and $92,656 for the three and nine months ended September 30, 2022, respectively. The proportionate share of sales excluded is $32,820 and $94,984 for the three and nine months ended September 30, 2021, 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 $8,704 for the three months ended September 30, 2022, which includes $3,187 of equity in net income plus $1,601 of amortization of investment in affiliate step-up and $3,917 of joint venture depreciation, amortization and interest. The Adjusted EBITDA from the Zeolyst Joint Venture included in the Catalyst Technologies segment is $34,306 for the nine months ended September 30, 2022, which includes $17,500 of equity in net income plus $4,802 of amortization of investment in affiliate step-up and $12,004 of joint venture depreciation, amortization and interest.

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 $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.

Reconciliation of Net Income (Loss) from Continuing Operations to Adjusted EBITDA

A reconciliation of net income (loss) to Ecovyst to Adjusted EBITDA is as follows:


	Three months ended September 30,				Nine months ended September 30,
	2022		2021		2022		2021
Reconciliation of net income (loss) from continuing operations to Adjusted EBITDA
Net income (loss) from continuing operations	$	21,325	$	4,689	$	48,445	$	(5,929)
Provision for income taxes	8,966		2,591		21,983		5,095
Interest expense, net	9,542		9,005		26,880		28,202
Depreciation and amortization	19,599		20,599		58,803		60,084
EBITDA	59,432		36,884		156,111		87,452
Joint venture depreciation, amortization and interest	3,917		4,112		12,004		11,412
Amortization of investment in affiliate step-up	1,601		1,601		4,802		4,879

Debt extinguishment costs	—		15,185		—		26,902
Net loss on asset disposals	468		2,156		1,174		4,535
Foreign exchange losses	1,030		922		2,179		4,803
LIFO benefit	(436)		(1,295)		(4)		(1,998)

Transaction and other related costs	1,789		538		6,860		1,620
Equity-based compensation	4,740		10,193		17,419		22,837
Restructuring, integration and business optimization expenses	1,322		78		6,421		2,408
Defined benefit pension plan expense (benefit)	292		(1,029)		(814)		(2,219)
Other	1,282		30		1,416		1,723
Adjusted EBITDA	$	75,437	$	69,375	$	207,568	$	164,354