Ecovyst, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Reportable Segments (Tables)

Reportable Segments (Tables)

12 Months Ended

Dec. 31, 2021

Reconciliation of Revenue from Reportable Segments to Consolidated

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


	Years ended December 31,
	2021		2020		2019
Sales:
Ecoservices	$	500,513	$	401,913	$	447,080
Catalyst Technologies(1)	110,688		94,007		85,667



Total	$	611,201	$	495,920	$	532,747

Adjusted EBITDA:(2)
Ecoservices	$	177,672	$	157,198	$	175,640
Catalyst Technologies(3)	88,028		74,504		107,808
Unallocated corporate expenses	(38,089)		(39,087)		(43,263)
Total	$	227,611	$	192,615	$	240,185

(1)Excludes the Company’s proportionate share of sales from the Zeolyst Joint Venture accounted for using the equity method. The proportionate share of sales is $131,332, $128,623 and $170,338 for the years ended December 31, 2021, 2020 and 2019, 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 $49,872 for the year ended December 31, 2021, which includes $27,827 of equity in net income plus $6,480 of amortization of investment in affiliate step-up plus $15,565 of joint venture depreciation, amortization and interest.

The Adjusted EBITDA from the Zeolyst Joint Venture included in the Catalyst Technologies segment is $42,515 for the year ended December 31, 2020, which includes $21,157 of equity in net income plus $6,634 of amortization of investment in affiliate step-up plus $14,724 of joint venture depreciation, amortization and interest.

The Adjusted EBITDA from the Zeolyst Joint Venture included in the Catalyst Technologies segment is $68,138 for the year ended December 31, 2019, which includes $45,899 of equity in net income plus $7,534 of amortization of investment in affiliate step-up plus $14,705 of joint venture depreciation, amortization and interest.

Reconciliation of Net Income to Segment Adjusted EBITDA

A reconciliation of net income attributable to Ecovyst to Adjusted EBITDA is as follows:


	Years ended December 31,
	2021		2020		2019
Reconciliation of net income attributable to Ecovyst Inc. to Adjusted EBITDA
Net income from continuing operations	$	1,794	$	54,280	$	31,120
Provision (benefit) for income taxes	12,147		(52,065)		12,299
Interest expense, net	36,990		50,409		66,872
Depreciation and amortization	79,741		76,926		74,781
EBITDA	130,672		129,550		185,072
Joint venture depreciation, amortization and interest	15,565		14,724		14,705
Amortization of investment in affiliate step-up	6,480		6,634		7,534


Debt extinguishment costs	26,902		25,028		3,400
Net loss on asset disposals	5,666		4,722		4,559
Foreign currency exchange (gain) loss	4,716		(5,264)		1,228
LIFO (benefit) expense	(1,931)		(5,262)		6,458

Transaction and other related costs	2,009		1,118		186
Equity-based compensation	31,838		17,194		13,281
Restructuring, integration and business optimization expenses	2,964		1,994		2,571
Defined benefit pension plan (benefit) cost	(858)		(598)		553
Other	3,588		2,775		638
Adjusted EBITDA	$	227,611	$	192,615	$	240,185

Capital Expenditures from Segment to Consolidated

Capital expenditures for the Company’s reportable segments are shown in the following table:


	Years ended December 31,
	2021		2020		2019
Capital expenditures:
Ecoservices	$	43,561	$	31,799	$	42,310
Catalyst Technologies(1)	15,997		11,177		8,984


Corporate(2)	487		11,861		3,958
Capital expenditures per the consolidated statements of cash flows	$	60,045	$	54,837	$	55,252

(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.

Revenue from External Customers by Geographic Areas

Sales and long-lived assets by geographic area are presented in the following tables. Sales are attributed to countries based upon location of products shipped.


	Years ended December 31,
	2021		2020		2019
Sales(1):
United States	$	571,587	$	443,682	$	492,146


Other foreign countries	39,614		52,238		40,601
Total	$	611,201	$	495,920	$	532,747

(1) Except for the United States, no sales in an individual country exceeded 10% of the Company’s total sales.

The Company sold products through its Ecoservices and Catalyst Technologies segments to customer A, which accounted for 12.6%, 10.4% and 11.7% of the Company’s total sales as of December 31, 2021, 2020, and 2019 respectively.

Long-lived Assets by Geographic Areas


	December 31,
	2021		2020
Long-lived assets(1):
United States	$	597,506	$	555,558


Other foreign countries	28,840		65,095
Total	$	626,346	$	620,653

(1) Long-lived assets includes property, plant and equipment, net and right-of-use lease assets.