Quarterly report pursuant to Section 13 or 15(d)

Reportable Segments

v3.24.3
Reportable Segments
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Reportable Segments
17. 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,
2024 2023 2024 2023
Sales:
Ecoservices $ 153,867  $ 147,629  $ 449,428  $ 443,433 
Advanced Materials & Catalysts(1)
25,308  25,697  73,104  74,877 
Total $ 179,175  $ 173,326  $ 522,532  $ 518,310 
Adjusted EBITDA:(2)
Ecoservices $ 55,098  $ 54,674  $ 146,301  $ 151,598 
Advanced Materials & Catalysts(3)
10,929  16,360  36,775  54,718 
Adjusted EBITDA from reportable segments $ 66,027  $ 71,034  $ 183,076  $ 206,316 
(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 $30,908 and $83,413 for the three and nine months ended September 30, 2024, respectively. The proportionate share of sales excluded is $36,958 and $103,721 for the three and nine months ended September 30, 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. For the three months ended September 30, 2024, the Adjusted EBITDA from the Zeolyst Joint Venture included in the Advanced Materials & Catalysts segment was $3,281, which includes $922 of equity in net loss plus $610 of amortization of investment in affiliate step-up and $3,593 of joint venture depreciation, amortization and interest. For the nine months ended September 30, 2024, the Adjusted EBITDA from the Zeolyst Joint Venture included in the Advanced Materials & Catalysts segment was $15,767, which includes $2,543 of equity in net income plus $3,151 of amortization of investment in affiliate step-up and $10,073 of joint venture depreciation, amortization and interest.
For the three months ended September 30, 2023, the Adjusted EBITDA from the Zeolyst Joint Venture included in the Advanced Materials & Catalysts segment was $9,640, 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. For the nine months ended September 30, 2023, the Adjusted EBITDA from the Zeolyst Joint Venture included in the Advanced Materials & Catalysts segment was $31,270, 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.
A reconciliation of income before income taxes to Adjusted EBITDA is as follows:
Three months ended
September 30,		 Nine months ended
September 30,
2024 2023 2024 2023
Reconciliation of income before income taxes to Adjusted EBITDA from reportable segments
Income before income taxes $ 18,748  $ 24,465  $ 32,523  $ 58,850 
Interest expense, net 11,305  11,811  37,609  30,812 
Depreciation and amortization 23,227  21,290  66,784  62,456 
Unallocated corporate expenses 6,224  3,163  20,836  16,243 
Joint venture depreciation, amortization and interest 3,593  3,292  10,073  10,112 
Amortization of investment in affiliate step-up 610  1,601  3,151  4,802 
Debt extinguishment costs —  —  4,560  — 
Net loss on asset disposals 218  1,020  832  3,326 
Foreign exchange (gain) loss (1) 774  78  (362)
LIFO (benefit) expense (552) —  (3,223) 2,510 
Transaction and other related costs —  187  198  2,811 
Equity-based compensation 2,952  3,477  10,460  12,547 
Restructuring, integration and business optimization expenses 535  310  920  2,438 
Other (832) (356) (1,725) (229)
Adjusted EBITDA from reportable segments $ 66,027  $ 71,034  $ 183,076  $ 206,316 
Capital expenditures for the Company’s reportable segments are shown in the following table:
  Nine months ended
September 30,
  2024 2023
Capital expenditures:
Ecoservices $ 42,107  $ 44,033 
Advanced Materials & Catalysts(1)
7,824  3,631 
Corporate(2)
1,794  5,978 
Capital expenditures per the condensed consolidated statements of cash flows $ 51,725  $ 53,642 
(1)    Excludes the Company’s proportionate share of capital expenditures from the Zeolyst Joint Venture.
(2)    Includes corporate capital expenditures, the cash impact from changes in capital expenditures in accounts payable and capitalized interest.