Ecovyst, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Reportable Segments (Tables)

Reportable Segments (Tables)

12 Months Ended

Dec. 31, 2022

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,
	2022		2021		2020
Sales:
Ecoservices	$	702,472	$	500,513	$	401,913
Catalyst Technologies(1)	117,687		110,688		94,007

Total	$	820,159	$	611,201	$	495,920






Adjusted EBITDA:(2)
Ecoservices	$	227,760	$	177,672	$	157,198
Catalyst Technologies(3)	77,978		88,028		74,504
Adjusted EBITDA from reportable segments	$	305,738	$	265,700	$	231,702

(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 $132,588, $131,332 and $128,623 for the years ended December 31, 2022, 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 $50,331 for the year ended December 31, 2022, which includes $27,931 of equity in net income plus $6,403 of amortization of investment in affiliate step-up plus $15,997 of joint venture depreciation, amortization and interest.

The Adjusted EBITDA from the Zeolyst Joint Venture included in the Catalyst Technologies segment is $49,872 for the year ended December 31, 2021, which includes $27,827 of equity in net income plus $6,480 of amortization of investment in affiliate step-up plus $15,565 of joint venture depreciation, amortization and interest.

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.

Reconciliation of Net Income to Segment Adjusted EBITDA

A reconciliation of income from continuing operations before income taxes to Adjusted EBITDA from reportable segments is as follows:


	Years ended December 31,
	2022		2021		2020
Reconciliation of income from continuing operations before income taxes to Adjusted EBITDA from reportable segments
Income from continuing operations before income taxes	$	94,735	$	13,941	$	2,215

Interest expense, net	37,217		36,990		50,409
Depreciation and amortization	79,163		79,741		76,926

Unallocated corporate expenses	29,042		38,089		39,087
Joint venture depreciation, amortization and interest	15,997		15,565		14,724
Amortization of investment in affiliate step-up	6,402		6,480		6,634


Debt extinguishment costs	—		26,902		25,028
Net loss on asset disposals	3,594		5,666		4,722
Foreign currency exchange loss (gain)	1,388		4,716		(5,264)
LIFO benefit	(165)		(1,931)		(5,262)

Transaction and other related costs	6,988		2,009		1,118
Equity-based compensation	20,632		31,838		17,194
Restructuring, integration and business optimization expenses	11,566		3,866		1,994

Other	(821)		1,828		2,177
Adjusted EBITDA from reportable segments	$	305,738	$	265,700	$	231,702

Capital Expenditures from Segment to Consolidated

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


	Years ended December 31,
	2022		2021		2020
Capital expenditures:
Ecoservices	$	47,770	$	43,561	$	31,799
Catalyst Technologies(1)	8,194		15,997		11,177
Corporate(2)	2,906		487		11,861
Capital expenditures per the consolidated statements of cash flows	$	58,870	$	60,045	$	54,837

(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 by geographic area are presented in the following table. Sales are attributed to countries based upon location of products shipped.


	Years ended December 31,
	2022		2021		2020
Sales(1):
United States	$	774,119	$	571,587	$	443,682
Other foreign countries	46,040		39,614		52,238
Total	$	820,159	$	611,201	$	495,920

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

The Company sold products through its Ecoservices and Catalyst Technologies segments to customer A, which accounted for 12.3%, 12.6% and 10.4% of the Company’s total sales as of December 31, 2022, 2021, and 2020 respectively.

Long-lived Assets by Geographic Areas

Long-lived assets by geographic area is presented in the following table. Long-lived assets includes property, plant and equipment, net and right-of-use lease assets.


	December 31,
	2022		2021
Long-lived assets:
United States	$	587,726	$	597,506


Other foreign countries	25,428		28,840
Total	$	613,154	$	626,346