Quarterly report pursuant to Section 13 or 15(d)

Reportable Segments (Tables)

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Reportable Segments (Tables)
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Summary Financial Information by Reportable Segment
Summarized financial information for the Company’s reportable segments is shown in the following table:
Three months ended
March 31,
2024 2023
Sales:
Ecoservices $ 141,602  $ 137,740 
Advanced Materials & Catalysts(1)
18,935  23,134 
Total $ 160,537  $ 160,874 
Adjusted EBITDA:(2)
Ecoservices $ 41,494  $ 36,787 
Advanced Materials & Catalysts(3)
11,129  12,989 
Adjusted EBITDA from reportable segments $ 52,623  $ 49,776 
(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 $23,481 and $22,074 for the three months ended March 31, 2024 and 2023, 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 for the Company’s Advanced Materials & Catalysts segment includes the Company’s 50% portion of the Adjusted EBITDA from the Zeolyst Joint Venture. The Adjusted EBITDA from the Zeolyst Joint Venture included in the Advanced Materials & Catalysts segment was $6,927 for the three months ended March 31, 2024, which includes $2,072 of equity in net income plus $1,601 of amortization of investment in affiliate step-up and $3,254 of joint venture depreciation, amortization and interest.
The Adjusted EBITDA from the Zeolyst Joint Venture included in the Advanced Materials & Catalysts segment was $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.
Reconciliation of Net Income to Segment Adjusted EBITDA
A reconciliation of income (loss) before income taxes to Adjusted EBITDA is as follows:
Three months ended
March 31,
2024 2023
Reconciliation of income (loss) before income taxes to Adjusted EBITDA from reportable segments
Income (loss) before income taxes $ 2,400  $ (524)
Interest expense, net 13,409  9,832 
Depreciation and amortization 21,933  20,197 
Unallocated corporate expenses 7,081  6,926 
Joint venture depreciation, amortization and interest 3,254  3,609 
Amortization of investment in affiliate step-up 1,601  1,601 
Net loss on asset disposals 648  1,178 
Foreign exchange loss (gain) 178  (738)
LIFO (benefit) expense (1,124) 1,399 
Transaction and other related costs 58  1,434 
Equity-based compensation 3,680  4,068 
Restructuring, integration and business optimization expenses 226  1,023 
Other (721) (229)
Adjusted EBITDA from reportable segments $ 52,623  $ 49,776