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

Annual report pursuant to Section 13 and 15(d)

Schedule I - Condensed Financial Information of Parent

Schedule I - Condensed Financial Information of Parent

12 Months Ended

Dec. 31, 2022

Condensed Financial Information Disclosure [Abstract]

Condensed Financial Information

SCHEDULE I

ECOVYST INC. AND SUBSIDIARIES (PARENT)

CONDENSED FINANCIAL INFORMATION

CONDENSED STATEMENTS OF INCOME

(in thousands)


	Years ended December 31,
	2022		2021		2020
Stock compensation expense	$	20,632	$	39,523	$	25,200
Equity in net (income) loss from subsidiaries	(94,329)		100,426		253,571
Net income (loss)	73,697		(139,949)		(278,771)
Other comprehensive income (loss), net of tax:
Pension and postretirement benefits	(2,676)		9,530		1,710
Net gain from hedging activities	24,382		2,914		1,177
Foreign currency translation	(9,922)		(2,248)		(2,804)
Total other comprehensive income	11,784		10,196		83
Comprehensive income (loss)	$	85,481	$	(129,753)	$	(278,688)

SCHEDULE I

ECOVYST INC. AND SUBSIDIARIES (PARENT)

CONDENSED FINANCIAL INFORMATION

CONDENSED BALANCE SHEETS

(in thousands, except share and per share amounts)


	December 31, 2022		December 31, 2021
ASSETS

Investment in subsidiaries	$	707,229	$	740,737
Total assets	$	707,229	$	740,737
LIABILITIES

Total liabilities	$	—	$	—
STOCKHOLDERS' EQUITY
Common stock (0.01 par); authorized shares 450,000,000; issued shares 139,571,272 and 137,820,971 on December 31, 2022 and 2021, respectively; outstanding shares 122,186,238 and 136,938,758 on December 31, 2022 and 2021, respectively	1,396		1,378
Preferred stock (0.01 par); authorized shares 50,000,000; no shares issued or outstanding on December 31, 2022 and 2021, respectively	—		—
Additional paid-in capital	1,091,475		1,073,409
Accumulated deficit	(242,010)		(315,707)
Treasury stock, at cost; shares 17,385,034 and 882,213 on December 31, 2022 and 2021, respectively	(149,624)		(12,551)
Accumulated other comprehensive (loss) income	5,992		(5,792)
Total equity	707,229		740,737
Total liabilities and equity	$	707,229	$	740,737

SCHEDULE I

ECOVYST INC. AND SUBSIDIARIES (PARENT)

CONDENSED FINANCIAL INFORMATION

CONDENSED STATEMENTS OF CASH FLOWS

(in thousands)


	Years ended December 31,
	2022		2021		2020
Cash flows from operating activities:
Net income (loss)	$	73,697	$	(139,949)	$	(278,771)
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in net income from subsidiaries	(94,329)		100,426		253,571
Stock compensation expense	20,632		39,523		25,200
Net cash provided by operating activities	—		—		—
Cash flows from investing activities:
Distribution from subsidiaries	—		435,593		243,749
Net cash provided by investing activities	—		435,593		243,749
Cash flows from financing activities:
Dividends paid to stockholders	—		(435,593)		(243,749)
Net cash used in financing activities	—		(435,593)		(243,749)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	—		—		—
Net change in cash, cash equivalents and restricted cash	—		—		—
Cash, cash equivalents and restricted cash at beginning of period	—		—		—
Cash, cash equivalents and restricted cash at end of period of continuing operations	$	—	$	—	$	—

SCHEDULE I

ECOVYST INC. AND SUBSIDIARIES (PARENT)

CONDENSED FINANCIAL INFORMATION

NOTES TO CONDENSED SCHEDULE I

1. Description of Ecovyst Inc. and Subsidiaries

Ecovyst Inc. (“Ecovyst” or the “Parent Company”) is a holding company that conducts substantially all of its business operations through its wholly owned subsidiary, Ecovyst Catalyst Technologies LLC. As specified in certain of Ecovyst Catalyst Technologies LLC’s debt agreements, there are restrictions on the ability of Ecovyst Catalyst Technologies LLC to make payments to its stockholder, Ecovyst, on behalf of its equity interests (refer to Note 18 to the Ecovyst consolidated financial statements for further information regarding Ecovyst debt).

2. Basis of Presentation

The accompanying condensed Parent Company financial statements are required in accordance with Rule 4-08(e)(3) of Regulation S-X. These condensed financial statements have been presented on a “parent-only” basis. Under a parent-only presentation, the Parent Company’s investment in its consolidated subsidiary is presented under the equity method of accounting. Under the equity method, the investment in subsidiary is stated at cost plus contributions and equity in undistributed income (loss) of the subsidiary, less distributions received since the date of acquisition. These parent-only financial statements should be read in conjunction with Ecovyst’s audited consolidated financial statements.

3. Stock-Based Compensation

Refer to Note 23 of the notes to the Ecovyst consolidated financial statements for a description of stock-based compensation.

4. Dividends Paid

On December 14, 2020, Ecovyst’s Board of Directors declared a special cash dividend of $1.80 per share, using proceeds and cash on hand from the sale of the Performance Materials business. The dividend was paid on December 29, 2020 to the Company’s stockholders of record at the close of business on December 21, 2020.

On August 4, 2021, Ecovyst’s Board of Directors declared a special cash dividend of $3.20 per share, using the proceeds from the sale of the Performance Chemicals business. The dividend was paid on August 23, 2021 to the Company’s stockholders of record at the close of business on August 12, 2021.