Quarterly report pursuant to Section 13 or 15(d)

Reportable Segments

v3.23.2
Reportable Segments
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Reportable Segments
16. Reportable Segments:
Summarized financial information for the Company’s reportable segments is shown in the following table:
Three months ended
June 30,		 Six months ended
June 30,
2023 2022 2023 2022
Sales:
Ecoservices $ 158,065  $ 192,968  $ 295,805  $ 347,028 
Catalyst Technologies(1)
26,045  32,204  49,179  57,858 
Total $ 184,110  $ 225,172  $ 344,984  $ 404,886 
Adjusted EBITDA:(2)
Ecoservices $ 60,136  $ 59,984  $ 96,924  $ 109,325 
Catalyst Technologies(3)
25,371  21,429  38,359  38,404 
Adjusted EBITDA from reportable segments $ 85,507  $ 81,413  $ 135,283  $ 147,729 
(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 $44,689 and $66,763 for the three and six months ended June 30, 2023, respectively. The proportionate share of sales excluded is $35,906 and $64,883 for the three and six months ended June 30, 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 $16,194 for the three months ended June 30, 2023, which includes $11,382 of equity in net income plus $1,601 of amortization of investment in affiliate step-up and $3,212 of joint venture depreciation, amortization and interest. The Adjusted EBITDA from the Zeolyst Joint Venture included in the Catalyst Technologies segment is $21,630 for the six months ended June 30, 2023, which includes $11,608 of equity in net income plus $3,201 of amortization of investment in affiliate step-up and $6,821 of joint venture depreciation, amortization and interest.
The Adjusted EBITDA from the Zeolyst Joint Venture included in the Catalyst Technologies segment is $14,128 for the three months ended June 30, 2022, which includes $8,526 of equity in net income plus $1,601 of amortization of investment in affiliate step-up and $4,001 of joint venture depreciation, amortization and interest. The Adjusted EBITDA from the Zeolyst Joint Venture included in the Catalyst Technologies segment is $25,602 for the six months ended June 30, 2022, which includes $14,313 of equity in net income plus $3,201 of amortization of investment in affiliate step-up and $8,087 of joint venture depreciation, amortization and interest.
A reconciliation of income before income taxes to Adjusted EBITDA is as follows:
Three months ended
June 30,		 Six months ended
June 30,
2023 2022 2023 2022
Reconciliation of income before income taxes to Adjusted EBITDA
Income before income taxes $ 34,909  $ 26,542  $ 34,385  $ 40,137 
Interest expense, net 9,168  8,888  19,000  17,338 
Depreciation and amortization 20,969  19,658  41,166  39,204 
Unallocated corporate expenses 6,153  8,522  13,080  15,598 
Joint venture depreciation, amortization and interest 3,212  4,001  6,821  8,087 
Amortization of investment in affiliate step-up 1,601  1,601  3,201  3,201 
Net loss on asset disposals 1,128  573  2,306  706 
Foreign exchange (gain) loss (398) 502  (1,136) 1,148 
LIFO expense 1,111  187  2,510  432 
Transaction and other related costs 1,190  790  2,624  5,070 
Equity-based compensation 5,002  5,385  9,070  12,679 
Restructuring, integration and business optimization expenses 1,106  5,291  2,129  5,673 
Other 356  (527) 127  (1,544)
Adjusted EBITDA from reportable segments $ 85,507  $ 81,413  $ 135,283  $ 147,729