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, 2022

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,
	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.

Reconciliation of Net Income (Loss) from Continuing Operations to Adjusted EBITDA

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