Annual report [Section 13 and 15(d), not S-K Item 405]

Reportable Segments

v3.25.0.1
Reportable Segments
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Reportable Segments
13. Reportable Segments:
Sales
The Company has organized its business around two operating segments based on the review of discrete financial results for each of the operating segments by the CODM, for performance assessment and resource allocation purposes. Each of the Company’s operating segments represents a reportable segment under GAAP. The Company’s reportable segments are organized based on the nature and economic characteristics of the Company’s products. The Company’s two reportable segments are as follows: (1) Ecoservices, which provides sulfuric acid recycling to the North American refining industry for the production of alkylate and provides on-purpose virgin sulfuric acid for water treatment, mining and industrial applications; and (2) Advanced Materials & Catalysts, which serves the polymers and engineered plastics and the global refining, petrochemical and emissions control industries.
The following table summarizes sales for the Company’s reportable segments:
Years ended December 31,
2024 2023 2022
Sales:
Ecoservices $ 598,295  $ 584,845  $ 702,472 
Advanced Materials & Catalysts(1)
106,198  106,273  117,687 
Total $ 704,493  $ 691,118  $ 820,159 
(1)The Company does not record its proportionate share of sales from the Zeolyst Joint Venture accounted for using the equity method as revenue and such sales are not consolidated within its results of operations. See Note 10 to these consolidated financial statements for further information. The Company’s proportionate share of sales from the Zeolyst Joint Venture is $116,539, $156,481 and $132,588 for the years ended December 31, 2024, 2023 and 2022, respectively.

Adjusted EBITDA
The Company’s management evaluates the operating results of each reportable segment based upon adjusted earnings before interest, income taxes, depreciation and amortization (“Adjusted EBITDA”). The Company defines Adjusted EBITDA as EBITDA, which is a measure defined as net income before interest, income taxes, depreciation and amortization (each of which is included in the Company’s consolidated statements of income), adjusted for certain items as noted in the reconciliations below. Adjusted EBITDA should not be considered as an alternative to net income or 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.
For each reportable segment, the CODM uses segment Adjusted EBITDA to allocate resources (including employees, property and financial or capital resources) for each segment primarily in the annual budget and forecasting process. The CODM considers budget-to-actual variances on a monthly basis when making decisions about allocating capital and personnel to the segments. The CODM also uses segment Adjusted EBITDA to evaluate the return on assets of each segment in connection with performance evaluation and to inform the compensation for certain employees. Corporate overhead costs are not included in segment results as they relate to corporate-based responsibilities and decisions and are not included in the internal measures of segment operating performance used by the Company to measure the underlying performance of the operating segments.
The following table summarizes Adjusted EBITDA for the Company’s reportable segments:
Years ended December 31,
2024 2023 2022
Adjusted EBITDA:
Ecoservices $ 200,287  $ 199,966  $ 227,760 
Advanced Materials & Catalysts(1)
64,728  81,892  77,978 
Adjusted EBITDA from reportable segments $ 265,015  $ 281,858  $ 305,738 
(1)The Adjusted EBITDA for the Company’s Advanced Materials & Catalysts segment reflects the Company’s 50% portion of the earnings from the Zeolyst Joint Venture that have been recorded as equity in net income in its consolidated statements of income and includes Zeolyst Joint Venture adjustments on a proportionate basis based on the Company’s 50% ownership interest. For the year ended December 31, 2024, the Adjusted EBITDA from the Zeolyst Joint Venture included in the Advanced Materials & Catalysts segment was $32,212, which includes $15,112 of equity in net income plus $3,761 of amortization of investment in affiliate step-up and $13,339 of joint venture depreciation, amortization and interest.
For the year ended December 31, 2023, the Adjusted EBITDA from the Zeolyst Joint Venture included in the Advanced Materials & Catalysts segment was $50,490, which includes $30,695 of equity in net income plus $6,403 of amortization of investment in affiliate step-up and $13,392 of joint venture depreciation, amortization and interest.
For the year ended December 31, 2022, the Adjusted EBITDA from the Zeolyst Joint Venture included in the Advanced Materials & Catalysts segment was $50,331, which includes $27,931 of equity in net income plus $6,403 of amortization of investment in affiliate step-up and $15,997 of joint venture depreciation, amortization and interest.    
The following tables reconcile sales to Adjusted EBITDA from reportable segments:
Year ended December 31, 2024
Ecoservices Advanced Materials & Catalysts Total
Sales(2)
$ 598,295  $ 106,198 
Less:(3)
Cost of goods sold 373,839  58,752 
Selling, general and administrative expenses 25,636  14,354 
Other segment items(4)
(1,467) 576 
Add:
Adjusted EBITDA from the Zeolyst Joint Venture —  32,212 
Adjusted EBITDA from reportable segments $ 200,287  $ 64,728  $ 265,015 
Year ended December 31, 2023
Ecoservices Advanced Materials & Catalysts Total
Sales(2)
$ 584,845  $ 106,273 
Less:(3)
Cost of goods sold 361,958  60,035 
Selling, general and administrative expenses 23,615  14,255 
Other segment items(4)
(694) 581 
Add:
Adjusted EBITDA from the Zeolyst Joint Venture —  50,490 
Adjusted EBITDA from reportable segments $ 199,966  $ 81,892  $ 281,858 
Year ended December 31, 2022
Ecoservices Advanced Materials & Catalysts Total
Sales(2)
$ 702,472  $ 117,687 
Less:(3)
Cost of goods sold 454,602  77,933 
Selling, general and administrative expenses 20,713  12,428 
Other segment items(4)
(603) (321)
Add:
Adjusted EBITDA from the Zeolyst Joint Venture —  50,331 
Adjusted EBITDA from reportable segments $ 227,760  $ 77,978  $ 305,738 
(2)    The Company does not record its proportionate share of sales from the Zeolyst Joint Venture accounted for using the equity method as revenue and such sales are not consolidated within its results of operations. See Note 10 to these consolidated financial statements for further information. The Company’s proportionate share of sales from the Zeolyst Joint Venture is $116,539, $156,481 and $132,588 for the years ended December 31, 2024, 2023 and 2022, respectively.
(3)    The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. All lines exclude depreciation, amortization and other items as noted in the reconciliation below.
(4)    Other segment items include other operating (income) expense, foreign currency exchange (gains) losses and other (income) expense. Other income primarily relates to sale of environmental credits.
The following table reconciles Adjusted EBITDA from reportable segments to income from continuing operations before income taxes:
Years ended December 31,
2024 2023 2022
Adjusted EBITDA from reportable segments $ 265,015  $ 281,858  $ 305,738 
Less:
Interest expense, net 49,426  44,730  37,217 
Depreciation and amortization 89,362  84,598  79,163 
Unallocated corporate expenses 26,776  21,990  29,042 
Joint venture depreciation, amortization and interest 13,339  13,392  15,997 
Amortization of investment in affiliate step-up 3,761  6,403  6,402 
Impairment of investment in affiliated companies 65,000  —  — 
Intangible asset impairment charge 3,900  —  — 
Debt extinguishment costs 4,560  —  — 
Net loss on asset disposals 2,351  4,137  3,594 
Foreign currency exchange (gain) loss (182) (1,340) 1,388 
LIFO (benefit) expense (2,171) 3,473  (165)
Transaction and other related costs 428  2,954  6,988 
Equity-based compensation 14,043  16,031  20,632 
Restructuring, integration and business optimization expenses 955  2,655  11,566 
Other (1,511) 896  (821)
(Loss) income before income taxes $ (5,022) $ 81,939  $ 94,735 
Capital Expenditures
The following table shows capital expenditures for the Company’s reportable segments:
  Years ended December 31,
  2024 2023 2022
Capital expenditures:    
Ecoservices $ 54,689  $ 53,705  $ 47,770 
Advanced Materials & Catalysts(1)
14,712  8,441  8,194 
Other(2)
(448) 3,189  2,906 
Capital expenditures per the consolidated statements of cash flows $ 68,953  $ 65,335  $ 58,870 
(1)    Excludes the Company’s proportionate share of capital expenditures from the Zeolyst Joint Venture.
(2)    Includes the cash impact from changes in capital expenditures in accounts payable and capitalized interest.
Sales by Geography
Sales by geographic area are presented in the following table. Sales are attributed to countries based upon location of products shipped.
Years ended December 31,
2024 2023 2022
Sales(1):
   
United States $ 666,342  $ 649,652  $ 774,119 
Foreign countries 38,151  41,466  46,040 
Total $ 704,493  $ 691,118  $ 820,159 
(1)    Except for the United States, no sales in an individual country exceeded 10% of the Company’s total sales.
Sales by Customers
The Company sold products through its Ecoservices and Advanced Materials & Catalysts segments to two customers having 10% or more of total net sales. Customer A accounted for 13.6%, 13.2% and 12.3% of the Company’s total net sales for the years ended December 31, 2024, 2023 and 2022, respectively. Customer B accounted for 11.1% of total net sales for the year ended December 31, 2024 and was less than 10% for the years ended December 31, 2023 and 2022, respectively.
Long-lived Assets by Geography
Long-lived assets by geographic area is presented in the following table. Long-lived assets includes property, plant and equipment, net and right-of-use lease assets.

December 31,
2024 2023
Long-lived assets:    
United States $ 578,450  $ 575,536 
Foreign countries 24,383  25,649 
Total $ 602,833  $ 601,185 
Total assets by segment are not disclosed by the Company because the information is not prepared or used by the CODM to assess performance or to allocate resources.