Annual report pursuant to Section 13 and 15(d)

Schedule I - Condensed Financial Information of Parent

v3.22.0.1
Schedule I - Condensed Financial Information of Parent
 12 Months Ended
Dec. 31, 2021
Condensed Financial Information Disclosure [Abstract]  
Condensed Financial Information
SCHEDULE I
ECOVYST INC. AND SUBSIDIARIES (PARENT)
CONDENSED FINANCIAL INFORMATION
CONDENSED STATEMENTS OF INCOME
(in thousands)


Years ended
December 31,
2021 2020 2019
Stock compensation expense $ 39,523  $ 25,200  $ 18,225 
Equity in net loss (income) from subsidiaries 100,426  253,571  (97,764)
Net (loss) income (139,949) (278,771) 79,539 
Other comprehensive income (loss), net of tax:
Pension and postretirement benefits 5,794  1,938  2,430 
Net gain (loss) from hedging activities 2,914  166  (2,665)
Foreign currency translation 10,611  (16,596) 22,117 
Total other comprehensive income (loss) 19,319  (14,492) 21,882 
Comprehensive (loss) income $ (120,630) $ (293,263) $ 101,421 
SCHEDULE I
ECOVYST INC. AND SUBSIDIARIES (PARENT)
CONDENSED FINANCIAL INFORMATION
CONDENSED BALANCE SHEETS
(in thousands, except share and per share amounts)


December 31,
2021		 December 31,
2020
ASSETS
Investment in subsidiaries $ 740,737  $ 1,277,126 
Total assets $ 740,737  $ 1,277,126 
LIABILITIES
Total liabilities $ —  $ — 
STOCKHOLDERS' EQUITY
Common stock (0.01 par); authorized shares 450,000,000; issued shares 137,820,971 and 137,102,143 on December 31, 2021 and 2020, respectively; outstanding shares 136,938,758 and 136,318,557 on December 31, 2021 and 2020, respectively
 1,378  1,371 
Preferred stock (0.01 par); authorized shares 50,000,000; no shares issued or outstanding on December 31, 2021 and 2020, respectively
 —  — 
Additional paid-in capital 1,073,409  1,477,859 
Accumulated deficit (315,707) (175,758)
Treasury stock, at cost; shares 882,213 and 783,586 on December 31, 2021 and 2020, respectively
 (12,551) (11,081)
Accumulated other comprehensive loss (5,792) (15,265)
Total Ecovyst Inc. equity 740,737  1,277,126 
Total liabilities and equity $ 740,737  $ 1,277,126 
SCHEDULE I
ECOVYST INC. AND SUBSIDIARIES (PARENT)
CONDENSED FINANCIAL INFORMATION
CONDENSED STATEMENTS OF CASH FLOWS
(in thousands)


Years ended
December 31,
2021 2020 2019
Cash flows from operating activities:
Net (loss) income $ (139,949) $ (278,771) $ 79,539 
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in net income from subsidiaries 100,426  253,571  (97,764)
Stock compensation expense 39,523  25,200  18,225 
Net cash provided by operating activities —  —  — 
Cash flows from investing activities:
Distribution from subsidiaries 435,593  243,749  — 
Net cash provided by investing activities 435,593  243,749  — 
Cash flows from financing activities:
Dividends paid to stockholders (435,593) (243,749) — 
Net cash used in financing activities (435,593) (243,749) — 
Effect of exchange rate changes on cash, cash equivalents and restricted cash —  —  — 
Net change in cash, cash equivalents and restricted cash —  —  — 
Cash, cash equivalents and restricted cash at beginning of period —  —  — 
Cash, cash equivalents and restricted cash at end of period of continuing operations $ —  $ —  $ — 
SCHEDULE I
ECOVYST INC. AND SUBSIDIARIES (PARENT)
CONDENSED FINANCIAL INFORMATION
NOTES TO CONDENSED SCHEDULE I

1. Description of Ecovyst Inc. and Subsidiaries
Ecovyst Inc. (“Ecovyst” or the “Parent Company”) is a holding company that conducts substantially all of its business operations through its wholly owned subsidiary, Ecovyst Catalyst Technologies LLC. As specified in certain of Ecovyst Catalyst Technologies LLC’s debt agreements, there are restrictions on the ability of Ecovyst Catalyst Technologies LLC to make payments to its stockholder, Ecovyst, on behalf of its equity interests (refer to Note 18 to the Ecovyst consolidated financial statements for further information regarding Ecovyst debt).
2. Basis of Presentation
The accompanying condensed Parent Company financial statements are required in accordance with Rule 4-08(e)(3) of Regulation S-X. These condensed financial statements have been presented on a “parent-only” basis. Under a parent-only presentation, the Parent Company’s investment in its consolidated subsidiary is presented under the equity method of accounting. Under the equity method, the investment in subsidiary is stated at cost plus contributions and equity in undistributed income (loss) of the subsidiary, less distributions received since the date of acquisition. These parent-only financial statements should be read in conjunction with Ecovyst’s audited consolidated financial statements.
3. Stock-Based Compensation
Refer to Note 23 of the notes to the Ecovyst consolidated financial statements for a description of stock-based compensation.
4. Dividends Paid
On December 14, 2020, Ecovyst’s Board of Directors declared a special cash dividend of $1.80 per share, using proceeds and cash on hand from the sale of the Performance Materials business. The dividend was paid on December 29, 2020 to the Company’s stockholders of record at the close of business on December 21, 2020.