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)

3 Months Ended

Mar. 31, 2021

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 March 31,
		2021		2020
Sales:
Refining Services		$	100,222	$	100,690
Catalysts(1)		26,402		24,864



Total		$	126,624	$	125,554

Segment Adjusted EBITDA:(2)
Refining Services		$	33,002	$	37,183
Catalysts(3)		18,469		22,667


Total Segment Adjusted EBITDA(4)		$	51,471	$	59,850

(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 $28,978 and $32,291 for the three months ended March 31, 2021 and 2020, 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 Catalysts segment is $10,537 for the three months ended March 31, 2021, which includes $5,237 of equity in net income plus $1,658 of amortization of investment in affiliate step-up and $3,645 of joint venture depreciation, amortization and interest. The Adjusted EBITDA from the Zeolyst Joint Venture included in the Catalysts segment is $13,725 for the three months ended March 31, 2020, which includes $8,317 of equity in net income plus $1,658 of amortization of investment in affiliate step-up and $3,750 of joint venture depreciation, amortization and interest.

(4)Total Segment Adjusted EBITDA differs from the Company’s consolidated Adjusted EBITDA due to unallocated corporate expenses.

Reconciliation of Net Loss to Segment Adjusted EBITDA

A reconciliation of net loss from continuing operations to Segment Adjusted EBITDA is as follows:


	Three months ended March 31,
		2021		2020
Reconciliation of net loss from continuing operations to Segment Adjusted EBITDA
Net loss from continuing operations		$	(2,748)	$	(3,347)
Benefit for income taxes		(5,190)		(1,665)
Interest expense, net		10,456		15,298
Depreciation and amortization		19,500		18,675
Segment EBITDA		22,018		28,961
Joint venture depreciation, amortization and interest		3,645		3,750
Amortization of investment in affiliate step-up		1,658		1,658

Debt extinguishment costs		—		2,513
Net loss on asset disposals		778		163
Foreign currency exchange loss		5,101		7,070
LIFO benefit		(253)		(1,681)

Transaction and other related costs		472		800
Equity-based compensation		6,305		4,294
Restructuring, integration and business optimization expenses		2,259		348
Defined benefit pension plan benefit		(595)		(131)
Other		916		896
Adjusted EBITDA		42,304		48,641
Unallocated corporate expenses		9,167		11,209
Segment Adjusted EBITDA		$	51,471	$	59,850