Quarterly report pursuant to Section 13 or 15(d)

Reportable Segments

v3.22.2.2
Reportable Segments
 9 Months Ended
Sep. 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
September 30,		 Nine months ended
September 30,
2022 2021 2022 2021
Sales:
Ecoservices $ 195,674  $ 137,550  $ 542,703  $ 358,509 
Catalyst Technologies(1)
36,859  29,878  94,716  82,495 
Total $ 232,533  $ 167,428  $ 637,419  $ 441,004 
Adjusted EBITDA:(2)
Ecoservices $ 64,110  $ 51,920  $ 173,435  $ 125,372 
Catalyst Technologies(3)
19,272  25,441  57,676  64,623 
Unallocated corporate expenses (7,945) (7,986) (23,543) (25,641)
Total $ 75,437  $ 69,375  $ 207,568  $ 164,354 
(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 excluded is $27,773 and $92,656 for the three and nine months ended September 30, 2022, respectively. The proportionate share of sales excluded is $32,820 and $94,984 for the three and nine months ended September 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 $8,704 for the three months ended September 30, 2022, which includes $3,187 of equity in net income plus $1,601 of amortization of investment in affiliate step-up and $3,917 of joint venture depreciation, amortization and interest. The Adjusted EBITDA from the Zeolyst Joint Venture included in the Catalyst Technologies segment is $34,306 for the nine months ended September 30, 2022, which includes $17,500 of equity in net income plus $4,802 of amortization of investment in affiliate step-up and $12,004 of joint venture depreciation, amortization and interest.
The Adjusted EBITDA from the Zeolyst Joint Venture included in the Catalyst Technologies segment is $14,493 for the three months ended September 30, 2021, which includes $8,780 of equity in net income plus $1,601 of amortization of investment in affiliate step-up and $4,112 of joint venture depreciation, amortization and interest. The Adjusted EBITDA from the Zeolyst Joint Venture included in the Catalyst Technologies segment is $37,085 for the nine months ended September 30, 2021, which includes $20,794 of equity in net income plus $4,879 of amortization of investment in affiliate step-up and $11,412 of joint venture depreciation, amortization and interest.
A reconciliation of net income (loss) to Ecovyst to Adjusted EBITDA is as follows:
Three months ended
September 30,		 Nine months ended
September 30,
2022 2021 2022 2021
Reconciliation of net income (loss) from continuing operations to Adjusted EBITDA
Net income (loss) from continuing operations $ 21,325  $ 4,689  $ 48,445  $ (5,929)
Provision for income taxes 8,966  2,591  21,983  5,095 
Interest expense, net 9,542  9,005  26,880  28,202 
Depreciation and amortization 19,599  20,599  58,803  60,084 
EBITDA 59,432  36,884  156,111  87,452 
Joint venture depreciation, amortization and interest 3,917  4,112  12,004  11,412 
Amortization of investment in affiliate step-up 1,601  1,601  4,802  4,879 
Debt extinguishment costs —  15,185  —  26,902 
Net loss on asset disposals 468  2,156  1,174  4,535 
Foreign exchange losses 1,030  922  2,179  4,803 
LIFO benefit (436) (1,295) (4) (1,998)
Transaction and other related costs 1,789  538  6,860  1,620 
Equity-based compensation 4,740  10,193  17,419  22,837 
Restructuring, integration and business optimization expenses 1,322  78  6,421  2,408 
Defined benefit pension plan expense (benefit) 292  (1,029) (814) (2,219)
Other 1,282  30  1,416  1,723 
Adjusted EBITDA $ 75,437  $ 69,375  $ 207,568  $ 164,354