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)

3 Months Ended

Mar. 31, 2023

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 March 31,
		2023		2022
Sales:
Ecoservices		$	137,740	$	154,060
Catalyst Technologies(1)		23,134		25,654

Total		$	160,874	$	179,714

Adjusted EBITDA:(2)
Ecoservices		$	36,787	$	49,341
Catalyst Technologies(3)		12,989		16,975
Adjusted EBITDA from reportable segments		$	49,776	$	66,316

(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 9 to these condensed consolidated financial statements for further information). The proportionate share of sales excluded is $22,074 and $28,977 for the three months ended March 31, 2023 and 2022, 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 $5,436 for the three months ended March 31, 2023, which includes $226 of equity in net income plus $1,601 of amortization of investment in affiliate step-up and $3,609 of joint venture depreciation, amortization and interest.

The Adjusted EBITDA from the Zeolyst Joint Venture included in the Catalyst Technologies segment is $11,474 for the three months ended March 31, 2022, which includes $5,787 of equity in net income plus $1,601 of amortization of investment in affiliate step-up and $4,087 of joint venture depreciation, amortization and interest.

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

A reconciliation of (loss) income before income taxes to Adjusted EBITDA is as follows:


	Three months ended March 31,
		2023		2022
Reconciliation of (loss) income before income taxes to Adjusted EBITDA
(Loss) income before income taxes		$	(524)	$	13,595
Interest expense, net		9,832		8,450
Depreciation and amortization		20,197		19,546
Unallocated corporate expenses		6,926		7,076
Joint venture depreciation, amortization and interest		3,609		4,087
Amortization of investment in affiliate step-up		1,601		1,601

Net loss on asset disposals		1,178		133
Foreign exchange (gain) loss		(738)		647
LIFO expense		1,399		245
Transaction and other related costs		1,434		4,281
Equity-based compensation		4,068		7,294
Restructuring, integration and business optimization expenses		1,023		382
Other		(229)		(1,021)
Adjusted EBITDA from reportable segments		$	49,776	$	66,316