Quarterly report pursuant to Section 13 or 15(d)

Reportable Segments

v3.22.2
Reportable Segments
 6 Months Ended
Jun. 30, 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
June 30,		 Six months ended
June 30,
2022 2021 2022 2021
Sales:
Ecoservices $ 192,968  $ 120,741  $ 347,028  $ 220,963 
Catalyst Technologies(1)
32,204  26,215  57,858  52,617 
Eliminations(2)
—  (4) —  (4)
Total $ 225,172  $ 146,952  $ 404,886  $ 273,576 
Adjusted EBITDA:(2)
Ecoservices $ 59,984  $ 40,450  $ 109,325  $ 73,452 
Catalyst Technologies(3)
21,429  20,714  38,404  39,183 
Unallocated corporate expenses (8,522) (8,481) (15,598) (17,648)
Total $ 72,891  $ 52,683  $ 132,131  $ 94,987 
(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 $35,906 and $64,883 for the three and six months ended June 30, 2022, respectively. The proportionate share of sales is $33,186 and $62,164 for the three and six months ended June 30, 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 $14,128 for the three months ended June 30, 2022, which includes $8,526 of equity in net income plus $1,600 of amortization of investment in affiliate step-up and $4,001 of joint venture depreciation, amortization and interest. The Adjusted EBITDA from the Zeolyst Joint Venture included in the Catalyst Technologies segment is $25,602 for the six months ended June 30, 2022, which includes $14,313 of equity in net income plus $3,201 of amortization of investment in affiliate step-up and $8,087 of joint venture depreciation, amortization and interest.
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 $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.
A reconciliation of net income (loss) to Ecovyst to Adjusted EBITDA is as follows:
Three months ended
June 30,		 Six months ended
June 30,
2022 2021 2022 2021
Reconciliation of net income (loss) from continuing operations to Adjusted EBITDA
Net income (loss) from continuing operations $ 19,245  $ (7,870) $ 27,120  $ (10,618)
Provision for income taxes 7,297  7,694  13,017  2,504 
Interest expense, net 8,888  8,741  17,338  19,197 
Depreciation and amortization 19,658  19,985  39,204  39,485 
EBITDA 55,088  28,550  96,679  50,568 
Joint venture depreciation, amortization and interest 4,001  3,656  8,087  7,300 
Amortization of investment in affiliate step-up 1,601  1,620  3,201  3,278 
Debt extinguishment costs —  11,717  —  11,717 
Net loss on asset disposals 573  1,601  706  2,379 
Foreign exchange losses (gains) 502  (1,219) 1,148  3,882 
LIFO expense (benefit) 187  (450) 432  (703)
Transaction and other related costs 790  610  5,070  1,083 
Equity-based compensation 5,385  6,339  12,679  12,644 
Restructuring, integration and business optimization expenses 4,746  71  5,098  2,330 
Defined benefit pension plan benefit (553) (595) (1,106) (1,190)
Other 571  783  137  1,699 
Adjusted EBITDA $ 72,891  $ 52,683  $ 132,131  $ 94,987