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)

6 Months Ended

Jun. 30, 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 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.

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

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