Quarterly report pursuant to Section 13 or 15(d)

Reportable Segments

v3.22.1
Reportable Segments
 3 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
Reportable Segments
18. Reportable Segments:
Summarized financial information for the Company’s reportable segments is shown in the following table:
Three months ended
March 31,
2022 2021
Sales:
Ecoservices $ 154,060  $ 100,222 
Catalyst Technologies(1)
25,654  26,402 
Total $ 179,714  $ 126,624 
Adjusted EBITDA:(2)
Ecoservices $ 49,341  $ 33,002 
Catalyst Technologies(3)
16,975  18,469 
Unallocated corporate expenses (7,076) (9,167)
 Total $ 59,240  $ 42,304 
(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 $28,977 and $28,978 for the three months ended March 31, 2022 and 2021, 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 $11,474 for the three months ended March 31, 2022, which includes $5,787 of equity in net income plus $1,601 of amortization of investment in affiliate step-up and $4,087 of joint venture depreciation, amortization and interest. The Adjusted EBITDA from the Zeolyst Joint Venture included in the Catalyst Technologies segment is $10,537 for the three months ended March 31, 2021, which includes $5,237 of equity in net income plus $1,658 of amortization of investment in affiliate step-up and $3,645 of joint venture depreciation, amortization and interest.
A reconciliation of net income (loss) to Ecovyst to Adjusted EBITDA is as follows:
Three months ended
March 31,
2022 2021
Reconciliation of net income (loss) from continuing operations to Adjusted EBITDA
Net income (loss) from continuing operations $ 7,875  $ (2,748)
Provision (benefit) for income taxes 5,720  (5,190)
Interest expense, net 8,450  10,456 
Depreciation and amortization 19,546  19,500 
EBITDA 41,591  22,018 
Joint venture depreciation, amortization and interest 4,087  3,645 
Amortization of investment in affiliate step-up 1,601  1,658 
Net loss on asset disposals 133  778 
Foreign exchange losses 647  5,101 
LIFO expense (benefit) 245  (253)
Transaction and other related costs 4,281  472 
Equity-based compensation 7,294  6,305 
Restructuring, integration and business optimization expenses 352  2,259 
Defined benefit pension plan benefit (554) (595)
Other (437) 916 
Adjusted EBITDA $ 59,240  $ 42,304