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)

6 Months Ended

Jun. 30, 2021

Reconciliation of Revenue from Reportable Segments to Consolidated

Summarized financial information for the Company’s reportable segments is shown in the following table:


	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
Sales:
Ecoservices	$	120,741	$	90,433	$	220,963	$	191,123
Silica Catalysts(1)	26,215		25,208		52,617		50,072



Total	$	146,952	$	115,641	$	273,576	$	241,195

Segment Adjusted EBITDA:(2)
Ecoservices	$	40,450	$	34,996	$	73,452	$	72,179
Catalyst Technologies(3)	20,714		25,312		39,183		47,979


Total Segment Adjusted EBITDA(4)	$	61,164	$	60,308	$	112,635	$	120,158

(1)Excludes the Company’s proportionate share of sales from the Zeolyst International and Zeolyst C.V. joint ventures (collectively, the “Zeolyst Joint Venture”) accounted for using the equity method (see Note 11 to these condensed consolidated financial statements for further information). The proportionate share of sales is $33,186 and $40,852 for the three months ended June 30, 2021 and 2020, respectively. The proportionate share of sales is $62,164 and $73,143 for the six months ended June 30, 2021 and 2020, 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 $12,055 for the three months ended June 30, 2021, which includes $6,779 of equity in net income plus $1,620 of amortization of investment in affiliate step-up and $3,656 of joint venture depreciation, amortization and interest. The Adjusted EBITDA from the Zeolyst Joint Venture included in the Catalyst Technologies segment is $16,855 for the three months ended June 30, 2020, which includes $11,489 of equity in net income plus $1,659 of amortization of investment in affiliate step-up and $3,707 of joint venture depreciation, amortization and interest.

The Adjusted EBITDA from the Zeolyst Joint Venture included in the Catalyst Technologies segment is $22,592 for the six months ended June 30, 2021, which includes $12,014 of equity in net income plus $3,278 of amortization of investment in affiliate step-up and $7,300 of joint venture depreciation, amortization and interest. The Adjusted EBITDA from the Zeolyst Joint Venture included in the Catalyst Technologies segment is $30,580 for the six months ended June 30, 2020, which includes $19,806 of equity in net income plus $3,317 of amortization of investment in affiliate step-up and $7,457 of joint venture depreciation, amortization and interest.

(4)Total Segment Adjusted EBITDA differs from the Company’s consolidated Adjusted EBITDA due to unallocated corporate expenses.

Reconciliation of Net Loss to Segment Adjusted EBITDA

A reconciliation of net loss from continuing operations to Segment Adjusted EBITDA is as follows:


	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
Reconciliation of net (loss) income from continuing operations to Segment Adjusted EBITDA
Net (loss) income from continuing operations	$	(7,870)	$	34,317	$	(10,618)	$	30,970
Provision (benefit) for income taxes	7,694		(24,630)		2,504		(26,295)
Interest expense, net	8,741		15,136		19,197		30,434
Depreciation and amortization	19,985		18,746		39,485		37,421
Segment EBITDA	28,550		43,569		50,568		72,530
Joint venture depreciation, amortization and interest	3,656		3,707		7,300		7,457
Amortization of investment in affiliate step-up	1,620		1,659		3,278		3,317

Debt extinguishment costs	11,717		—		11,717		2,513
Net loss on asset disposals	1,601		440		2,379		602
Foreign currency exchange (gain) loss	(1,219)		(3,361)		3,882		3,709
LIFO benefit	(450)		(1,959)		(703)		(3,640)

Transaction and other related costs	610		392		1,083		1,192
Equity-based compensation	6,339		4,643		12,644		8,937
Restructuring, integration and business optimization expenses	71		848		2,330		1,196
Defined benefit pension plan benefit	(595)		(179)		(1,190)		(310)
Other	783		275		1,699		1,172
Adjusted EBITDA	52,683		50,034		94,987		98,675
Unallocated corporate expenses	8,481		10,274		17,648		21,483
Segment Adjusted EBITDA	$	61,164	$	60,308	$	112,635	$	120,158