Quarterly report pursuant to Section 13 or 15(d)

Reportable Segments (Tables)

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Reportable Segments (Tables)
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
Summary Financial Information by Reportable Segment
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,
2024 2023 2024 2023
Sales:
Ecoservices $ 153,958  $ 158,065  $ 295,560  $ 295,805 
Advanced Materials & Catalysts(1)
28,862  26,045  47,797  49,179 
Total $ 182,820  $ 184,110  $ 343,357  $ 344,984 
Adjusted EBITDA:(2)
Ecoservices $ 49,709  $ 60,136  $ 91,203  $ 96,924 
Advanced Materials & Catalysts(3)
14,717  25,371  25,846  38,359 
Adjusted EBITDA from reportable segments $ 64,426  $ 85,507  $ 117,049  $ 135,283 
(1)Excludes the Company’s proportionate share of sales from the Zeolyst Joint Venture accounted for using the equity method (see Note 9 to these condensed consolidated financial statements for further information). The proportionate share of sales excluded is $29,024 and $52,505 for the three and six months ended June 30, 2024, respectively. The proportionate share of sales excluded is $44,689 and $66,763 for the three and six months ended June 30, 2023, 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 for the Company’s Advanced Materials & Catalysts segment includes the Company’s 50% portion of the Adjusted EBITDA from the Zeolyst Joint Venture. For the three months ended June 30, 2024, the Adjusted EBITDA from the Zeolyst Joint Venture included in the Advanced Materials & Catalysts segment was $5,559, which includes $1,392 of equity in net income plus $940 of amortization of investment in affiliate step-up and $3,227 of joint venture depreciation, amortization and interest. For the six months ended June 30, 2024, the Adjusted EBITDA from the Zeolyst Joint Venture included in the Advanced Materials & Catalysts segment was $12,486, which includes $3,464 of equity in net income plus $2,541 of amortization of investment in affiliate step-up and $6,481 of joint venture depreciation, amortization and interest.
For the three months ended June 30, 2023, the Adjusted EBITDA from the Zeolyst Joint Venture included in the Advanced Materials & Catalysts segment was $16,194, which includes $11,382 of equity in net income plus $1,601 of amortization of investment in affiliate step-up and $3,212 of joint venture depreciation, amortization and interest. For the six months ended June 30, 2023, the Adjusted EBITDA from the Zeolyst Joint Venture included in the Advanced Materials & Catalysts segment was $21,630, which includes $11,608 of equity in net income plus $3,201 of amortization of investment in affiliate step-up and $6,821 of joint venture depreciation, amortization and interest.
Reconciliation of Net Income to Segment Adjusted EBITDA
A reconciliation of income before income taxes to Adjusted EBITDA is as follows:
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June 30,		 Six months ended
June 30,
2024 2023 2024 2023
Reconciliation of income before income taxes to Adjusted EBITDA from reportable segments
Income before income taxes $ 11,375  $ 34,909  $ 13,775  $ 34,385 
Interest expense, net 12,895  9,168  26,304  19,000 
Depreciation and amortization 21,624  20,969  43,557  41,166 
Unallocated corporate expenses 7,532  6,153  14,613  13,080 
Joint venture depreciation, amortization and interest 3,227  3,212  6,481  6,821 
Amortization of investment in affiliate step-up 940  1,601  2,541  3,201 
Debt extinguishment costs 4,560  —  4,560  — 
Net (gain) loss on asset disposals (34) 1,128  614  2,306 
Foreign exchange (gain) loss (99) (398) 79  (1,136)
LIFO (benefit) expense (1,547) 1,111  (2,671) 2,510 
Transaction and other related costs 140  1,190  198  2,624 
Equity-based compensation 3,827  5,002  7,507  9,070 
Restructuring, integration and business optimization expenses 159  1,106  385  2,129 
Other (173) 356  (894) 127 
Adjusted EBITDA from reportable segments $ 64,426  $ 85,507  $ 117,049  $ 135,283