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)

9 Months Ended

Sep. 30, 2023

Summary Financial Information by Reportable Segment

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.

Reconciliation of Net Income to Segment Adjusted EBITDA

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