Quarterly report pursuant to Section 13 or 15(d)

Reportable Segments

v3.23.3
Reportable Segments
 9 Months Ended
Sep. 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
September 30,		 Nine months ended
September 30,
2023 2022 2023 2022
Sales:
Ecoservices $ 147,629  $ 195,674  $ 443,433  $ 542,703 
Catalyst Technologies(1)
25,697  36,859  74,877  94,716 
Total $ 173,326  $ 232,533  $ 518,310  $ 637,419 
Adjusted EBITDA:(2)
Ecoservices $ 54,674  $ 64,110  $ 151,598  $ 173,435 
Catalyst Technologies(3)
16,360  19,272  54,718  57,676 
Adjusted EBITDA from reportable segments $ 71,034  $ 83,382  $ 206,316  $ 231,111 
(1)Excludes the Company’s proportionate share of sales from 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 $36,958 and $103,721 for the three and nine months ended September 30, 2023, respectively. The proportionate share of sales excluded is $27,773 and $92,656 for the three and nine months ended September 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 $9,640 for the three months ended September 30, 2023, which includes $4,748 of equity in net income plus $1,601 of amortization of investment in affiliate step-up and $3,291 of joint venture depreciation, amortization and interest. The Adjusted EBITDA from the Zeolyst Joint Venture included in the Catalyst Technologies segment is $31,270 for the nine months ended September 30, 2023, which includes $16,356 of equity in net income plus $4,802 of amortization of investment in affiliate step-up and $10,112 of joint venture depreciation, amortization and interest.
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.
A reconciliation of income before income taxes to Adjusted EBITDA is as follows:
Three months ended
September 30,		 Nine months ended
September 30,
2023 2022 2023 2022
Reconciliation of income before income taxes to Adjusted EBITDA from reportable segments
Income before income taxes $ 24,465  $ 30,291  $ 58,850  $ 70,428 
Interest expense, net 11,811  9,542  30,812  26,880 
Depreciation and amortization 21,290  19,599  62,456  58,803 
Unallocated corporate expenses 3,163  7,945  16,243  23,543 
Joint venture depreciation, amortization and interest 3,292  3,917  10,112  12,004 
Amortization of investment in affiliate step-up 1,601  1,601  4,802  4,802 
Net loss on asset disposals 1,020  468  3,326  1,174 
Foreign exchange loss (gain) 774  1,030  (362) 2,179 
LIFO (benefit) expense —  (436) 2,510  (4)
Transaction and other related costs 187  1,789  2,811  6,860 
Equity-based compensation 3,477  4,740  12,547  17,419 
Restructuring, integration and business optimization expenses 310  2,338  2,438  8,011 
Other (356) 558  (229) (988)
Adjusted EBITDA from reportable segments $ 71,034  $ 83,382  $ 206,316  $ 231,111