Earnings Preview: Ecovyst (ECVT) Q1 Earnings Expected to Decline
Ecovyst (ECVT) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
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Ecovyst Completes ABL Facility Amendments
WAYNE, Pa. , April 11, 2025 /PRNewswire/ -- Ecovyst Inc. (NYSE: ECVT), a leading integrated and innovative global provider of advanced materials, specialty catalysts, virgin sulfuric acid and sulfuric acid regeneration services ("Ecovyst"), announced today that its indirect, wholly owned subsidiary, Ecovyst Catalyst Technologies LLC, has successfully amended its existing ABL credit agreement (the "Amended ABL Facility"). The Amended ABL Facility remains at $100 million and was, among other things, extended by over three years to April 2030.
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Ecovyst to Host First Quarter 2025 Earnings Conference Call and Webcast on Thursday, May 1, 2025 at 11:00 a.m. ET
WAYNE, Pa. , April 9, 2025 /PRNewswire/ -- Ecovyst Inc. (NYSE: ECVT), a leading integrated and innovative global provider of advanced materials, specialty catalysts and services, announced today that it will conduct a conference call and audio-only webcast on Thursday, May 1, 2025 at 11:00 a.m. Eastern Time to review its first quarter 2025 financial results.
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Enzyme Supplies Ltd and Ecovyst Sign Memorandum of Understanding Focused on Accelerating Growth of Immobilized Enzymes
MALVERN, Pa. , March 26, 2025 /PRNewswire/ -- Ecovyst Inc. (NYSE: ECVT), a leading integrated and innovative global provider of advanced materials, specialty catalysts, virgin sulfuric acid and sulfuric acid regeneration services ("Ecovyst"), and Enzyme Supplies Ltd, a leading supplier of enzyme based products ("Enzyme Supplies") are pleased to announce the signing of a Memorandum of Understanding (MOU) focused on accelerating the growth of enzyme immobilization technologies.
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Ecovyst Announces Agreement to Acquire Sulfuric Acid Assets from Cornerstone Chemical Company
MALVERN, Pa. , March 18, 2025 /PRNewswire/ -- Ecovyst Inc. (NYSE: ECVT), a leading integrated and innovative global provider of advanced materials, specialty catalysts, virgin sulfuric acid and sulfuric acid regeneration services ("Ecovyst"), announced today that it has reached an agreement to acquire the sulfuric acid production assets of Cornerstone Chemical Company located in Waggaman, Louisiana.
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Ecovyst: Still Bullish
Ecovyst's stock was down over 20% after its Q4 earnings release, but I think the market's reaction was unjustified in terms of magnitude. ECVT's near-term remains cloudy between end-market choppiness and now with recently announced tariffs. But long-term, their demand is largely sustainable with growth opportunities. The valuation depends on how the macro behaves in the near-term, but with a potential for value creation via repurchases and a spin-off, the risk/reward remains attractive.
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Ecovyst Inc. (ECVT) Q4 2024 Earnings Call Transcript
Ecovyst Inc. (NYSE:ECVT ) Q4 2024 Results Conference Call February 27, 2025 11:00 AM ET Company Participants Gene Shiels - Director, Investor Relations Kurt Bitting - Chief Executive Officer Mike Feehan - Chief Financial Officer Conference Call Participants Patrick Cunningham - Citi Aleksey Yefremov - KeyBanc Capital Markets David Begleiter - Deutsche Bank Hamed Khorsand - BWS Financial Laurence Alexander - Jefferies Caleb Boehnlein - BMO Capital Markets David Silver - CL King Operator Good morning. My name is Risa, and I will be your conference operator today.
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Ecovyst (ECVT) Q4 Earnings Surpass Estimates
Ecovyst (ECVT) came out with quarterly earnings of $0.28 per share, beating the Zacks Consensus Estimate of $0.25 per share. This compares to earnings of $0.22 per share a year ago.
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Ecovyst Reports Fourth Quarter and Full Year 2024 Results
MALVERN, Pa. , Feb. 27, 2025 /PRNewswire/ -- Ecovyst Inc. (NYSE: ECVT) ("Ecovyst" or the "Company"), a leading integrated and innovative global provider of advanced materials, specialty catalysts and services, today reported results for the fourth quarter and full year ended December 31, 2024.
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ChiralVision and Ecovyst Sign Memorandum of Understanding to Advance Enzyme Immobilization Technologies
MALVERN, Pa. , Feb. 4, 2025 /PRNewswire/ -- Ecovyst Inc. (NYSE: ECVT), a leading integrated and innovative global provider of advanced materials, specialty catalysts, sulfuric acid and regeneration services ("Ecovyst"), and ChiralVision B.V.
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Ecovyst to Host Fourth Quarter 2024 Earnings Conference Call and Webcast on Thursday, February 27, 2025 at 11:00 a.m. ET
MALVERN, Pa. , Feb. 4, 2025 /PRNewswire/ -- Ecovyst Inc. (NYSE: ECVT), a leading integrated and innovative global provider of advanced materials, specialty catalysts and services, announced today that it will conduct a conference call and audio-only webcast on Thursday, February 27, 2025 at 11:00 a.m.
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Ecovyst: Positive Moves
Ecovyst's Q3 results were largely stable as we're seeing end-markets start to balance out. Furthermore, management announced a strategic review of their AMC segment, adding a potential value optimization scenario not captured in their price today. At ~$7.5/share, I think investors can earn an attractive FCF-based IRR even if they don't spin off their AMC segment, but this does rest on end-markets largely stabilizing.
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Ecovyst Announces Strategic Review of its Advanced Materials & Catalysts Business Unit
MALVERN, Pa. , Dec. 2, 2024 /PRNewswire/ -- Ecovyst Inc. (NYSE: ECVT), a leading integrated and innovative global provider of advanced materials, specialty catalysts, sulfuric acid and regeneration services, today announced that its Board of Directors has initiated a strategic review process for its Advanced Materials & Catalysts business ("AM&C").
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Ecovyst Inc. to Participate in the Bank of America 2024 Leveraged Finance Conference
MALVERN, Pa. , Nov. 20, 2024 /PRNewswire/ -- Ecovyst Inc. (NYSE: ECVT) ("Ecovyst"), a leading integrated and innovative provider of specialty catalysts and services today announced that Nate Connor, Vice President of Finance & Treasurer, will present at the Bank of America Leveraged Finance Conference at 3:30 p.m.
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Ecovyst Announces Launch of AlphaCat® Advanced Silicas Products for Biocatalysis Applications
Launch of new product range aligns with strategy to diversify into emerging applications with high growth potential Buildout of laboratory & manufacturing capabilities and hiring of dedicated resources enables broader partnering with key customers to accelerate growth in 2025+ MALVERN, Pa. , Nov. 13, 2024 /PRNewswire/ -- Ecovyst Inc. (NYSE: ECVT) ("Ecovyst" or the "Company"), a leading integrated and innovative global provider of advanced materials, specialty catalysts and services, is proud to announce the launch of its AlphaCat® advanced silica products focused on enabling the advancement of biocatalysis.
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Ecovyst Inc. (ECVT) Q3 2024 Earnings Call Transcript
Ecovyst Inc. (NYSE:ECVT ) Q3 2024 Earnings Conference Call October 31, 2024 11:00 AM ET Company Participants Gene Shiels - Director, Investor Relations Kurt Bitting - Chief Executive Officer Mike Feehan - Chief Financial Officer Conference Call Participants Patrick Cunningham - Citi David Begleiter - Deutsche Bank Aleksey Yefremov - KeyBanc Capital Markets John McNulty - BMO Capital Markets Kevin Estok - Jefferies Hamed Khorsand - BWS Financial Operator Good morning. My name is Jim and I will be your conference operator today.
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Ecovyst (ECVT) Lags Q3 Earnings and Revenue Estimates
Ecovyst (ECVT) came out with quarterly earnings of $0.14 per share, missing the Zacks Consensus Estimate of $0.17 per share. This compares to earnings of $0.19 per share a year ago.
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Ecovyst Reports Third Quarter 2024 Results
MALVERN, Pa. , Oct. 31, 2024 /PRNewswire/ -- Ecovyst Inc. (NYSE: ECVT) ("Ecovyst" or the "Company"), a leading integrated and innovative global provider of advanced materials, specialty catalysts and services, today reported results for the third quarter ended September 30, 2024.
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Ecovyst (ECVT) Expected to Beat Earnings Estimates: Can the Stock Move Higher?
Ecovyst (ECVT) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
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Ecovyst to Host Third Quarter 2024 Earnings Conference Call and Webcast on Thursday, October 31, 2024 at 11:00 a.m. ET
MALVERN, Pa. , Oct. 8, 2024 /PRNewswire/ -- Ecovyst Inc. (NYSE: ECVT), a leading integrated and innovative global provider of advanced materials, specialty catalysts and services, announced today that it will conduct a conference call and audio-only webcast on Thursday, October 31, 2024 at 11:00 a.m.
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ECOVYST TO PARTICIPATE IN CL KING'S 22ND ANNUAL BEST IDEAS CONFERENCE 2024
MALVERN, Pa. , Sept. 10, 2024 /PRNewswire/ -- Ecovyst Inc. (NYSE: ECVT) ("Ecovyst"), a leading integrated and innovative provider of advanced materials, specialty catalysts and services, today announced that Kurt Bitting, Chief Financial Officer of Ecovyst Inc. and Mike Feehan, Chief Financial Officer of Ecovyst Inc, will present at CL King's 22nd Best Ideas Conference from 12:30 to 1:05 p.m.
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Ecovyst: Room For Solid Returns
Ecovyst Q2 2024 results were not well-received by the market, with a share price decline of nearly 30% post-earnings. Part of this decline is warranted given the softness they're now seeing from reduced renewable fuels production, a previously material tailwind benefitting results. However, demand on the whole isn't degrading that much. Coupled with long-term trends for most of their EBITDA plus margin growth opportunities, a higher price is justifiable.
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Ecovyst Inc. (ECVT) Q2 2024 Earnings Call Transcript
Ecovyst Inc. (NYSE:ECVT ) Q2 2024 Earnings Conference Call August 1, 2024 11:00 AM ET Company Participants Gene Shiels - Director of Investor Relations Kurt Bitting - Chief Executive Officer Michael Feehan - Chief Financial Officer Conference Call Participants Alex Yefremov - KeyBanc Capital Markets Patrick Cunningham - Citi Laurence Alexander - Jefferies Hamed Khorsand - BWS Financial David Silver - CL King Operator Good morning. My name is Madison [ph] and I will be your conference operator today.
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Ecovyst (ECVT) Misses Q2 Earnings and Revenue Estimates
Ecovyst (ECVT) came out with quarterly earnings of $0.12 per share, missing the Zacks Consensus Estimate of $0.14 per share. This compares to earnings of $0.29 per share a year ago.
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Ecovyst Reports Second Quarter 2024 Results
MALVERN, Pa. , Aug. 1, 2024 /PRNewswire/ -- Ecovyst Inc. (NYSE: ECVT) ("Ecovyst" or the "Company"), a leading integrated and innovative global provider of advanced materials, specialty catalysts and services, today reported results for the second quarter ended June 30, 2024 and updated fiscal 2024 guidance.
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Ecovyst Announces Equity Investment in Pajarito Powder, a Hydrogen Catalyst Company
Investment in Pajarito Powder, LLC aligns with Ecovyst's strategy to strengthen and expand our Advanced Materials & Catalysts capabilities into emerging markets Pajarito Powder technology enables the hydrogen economy through supports and catalysts for green hydrogen and fuel cells MALVERN, Pa. , July 25, 2024 /PRNewswire/ -- Ecovyst Inc. (the "Company"), a leading innovative and integrated global provider of advanced materials, specialty catalysts and services, is proud to announce a key equity investment of $4.5 million in Pajarito Powder, an innovative materials science company that specializes in supports and catalysts required for electrolyzers and fuel cells.
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Ecovyst to Host Second Quarter 2024 Earnings Conference Call and Webcast on Thursday, August 1, 2024 at 11:00 a.m. ET
MALVERN, Pa. , July 15, 2024 /PRNewswire/ -- Ecovyst Inc. (NYSE: ECVT), a leading integrated and innovative global provider of advanced materials, specialty catalysts and services, announced today that it will conduct a conference call and audio-only webcast on Thursday, August 1, 2024 at 11:00 a.m.
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Ecovyst: Enticing, Attractively Priced
Ecovyst has seen some market-wide pressures recently, with industrial end-markets affecting their Ecoservices segment and randomness (timing) affecting their Catalyst Tech segment. Over time, I think this is a business that can grow notwithstanding their material leverage to gasoline demand. At the current price under $9/share, a fair value closer to $10 or $11 seems more reasonable, which is likely to be realized should sales stabilize.
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3 Small-Cap Gems Trading at 52-Week Lows With 2X Upside
When researching which stocks to buy, and trying to find good deals on them, using a stock screener can be a quick and easy way to sort through the thousands of public companies available for investing in. By searching through a screener, investors can find any kind of stock based on the criteria they outline.
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Ecovyst Issues 2023 Sustainability Report
MALVERN, Pa. , June 25, 2024 /PRNewswire/ -- Ecovyst Inc. (NYSE: ECVT) ("Ecovyst" or the "company") today announced the release of its 2023 Sustainability Report, "Advancing the Global Shift Toward Sustainability.
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Ecovyst Successfully Amends and Extends Term Loan Facility
MALVERN, Pa. , June 12, 2024 /PRNewswire/ -- Ecovyst Inc. (NYSE: ECVT) ("Ecovyst" or the "Company"), a leading integrated and innovative global provider of advanced materials, specialty catalysts and services, today announced that it has successfully amended and extended its existing senior secured term loan facility (the "Amended Term Loan Facility") in an aggregate principal amount of $873 million at a lower interest rate margin and with an extended maturity.
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Zeolyst International Announces Start Up of New Laboratory Pyrolysis Reactor for Advanced Recycling of Plastic Waste
MALVERN, Pa. , May 16, 2024 /PRNewswire/ -- Zeolyst International, an Ecovyst Inc. (NYSE: ECVT) joint venture that is a leading producer of zeolites ("Zeolyst"), is proud to announce the successful commissioning of its new laboratory scale thermal pyrolysis reactor and cutting-edge analytical equipment for advanced recycling of plastic waste applications.
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Ecovyst Inc. (ECVT) Q1 2024 Earnings Call Transcript
Ecovyst Inc. (NYSE:ECVT ) Q1 2024 Results Conference Call May 2, 2024 11:00 AM ET Company Participants Gene Shiels - Director of IR Kurt Bitting - CEO Michael Feehan - CFO Conference Call Participants John McNulty - BMO Capital Markets Alex Yefremov - KeyBanc Capital Markets Patrick Cunningham - Citi Laurence Alexander - Jefferies Hamed Khorsand - BWS Financial Operator Good morning. My name is Madison, and I will be your conference operator today.
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Ecovyst Reports First Quarter 2024 Results
MALVERN, Pa. , May 2, 2024 /PRNewswire/ -- Ecovyst Inc. (NYSE: ECVT) ("Ecovyst" or the "Company"), a leading integrated and innovative global provider of advanced materials, specialty catalysts and services, today reported results for the first quarter ended March 31, 2024.
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Ecovyst (ECVT) Earnings Expected to Grow: Should You Buy?
Ecovyst (ECVT) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
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Ecovyst to Host First Quarter 2024 Earnings Conference Call and Webcast on Thursday, May 2, 2024 at 11:00 a.m. ET
MALVERN, Pa. , April 15, 2024 /PRNewswire/ -- Ecovyst Inc. (NYSE: ECVT), a leading integrated and innovative global provider of advanced materials, specialty catalysts and services, announced today that it will conduct a conference call and audio-only webcast on Thursday, May 2, 2024 at 11:00 a.m.
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Ecovyst Announces Winners of its 2023 Sustainability Leadership Awards
MALVERN, Pa. , April 2, 2024 /PRNewswire/ -- Ecovyst Inc. (NYSE: ECVT) ("Ecovyst" or the "Company"), a leading integrated and innovative global provider of advanced materials, specialty catalysts and services, today announced that it has recognized three outstanding teams with the Company's 2023 Sustainability Leadership Awards.
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Ecovyst Inc. (ECVT) Q4 2023 Earnings Call Transcript
Ecovyst Inc. (ECVT) Q4 2023 Earnings Call Transcript
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Ecovyst Reports Fourth Quarter and Full Year 2023 Results
MALVERN, Pa. , Feb. 28, 2024 /PRNewswire/ -- Ecovyst Inc. (NYSE:ECVT) ("Ecovyst" or the "Company"), a leading integrated and innovative global provider of advanced materials, specialty catalysts and services, today reported results for the fourth quarter and full year ended December 31, 2023.
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Ecovyst Announces Changes to Board of Directors
MALVERN, Pa. , Feb. 27, 2024 /PRNewswire/ -- Ecovyst Inc. (NYSE: ECVT) ("Ecovyst" or the "Company"), a leading integrated and innovative global provider of advanced materials, specialty catalysts and services, today announced that its Board of Directors (the "Board") has appointed Sarah Lorance as a director effective March 1, 2024, expanding the size of Ecovyst's Board from eight to nine members.
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Ecovyst Achieves EcoVadis Platinum Level Sustainability Rating
MALVERN, Pa. , Feb. 27, 2024 /PRNewswire/ -- Ecovyst Inc. (NYSE: ECVT) ("Ecovyst" or the "Company"), a leading integrated and innovative global provider of advanced materials, specialty catalysts and services, today announced that it has achieved a Platinum sustainability rating from EcoVadis.
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Ecovyst to Host Fourth Quarter 2023 Earnings Conference Call and Webcast on Wednesday, February 28, 2024 at 11:00 a.m. ET
MALVERN, Pa. , Feb. 13, 2024 /PRNewswire/ -- Ecovyst Inc. (NYSE: ECVT), a leading integrated and innovative global provider of advanced materials, specialty catalysts and services, announced today that it will conduct a conference call and audio-only webcast on Wednesday, February 28, 2024 at 11:00 a.m.
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Ecovyst Provides Update on Plans for Expansion of Orange, Texas, Catalyst Activation Facility
MALVERN, Pa. , Jan. 22, 2024 /PRNewswire/ -- Ecovyst Inc. (NYSE: ECVT) ("Ecovyst" or the "Company"), and its subsidiaries, a leading integrated and innovative global provider of advanced materials, specialty catalysts and services, announced today that it plans to invest in a new air emission control system at its Orange, Texas site as part of a project that is expected to increase the efficiency of the facility's emission control process and, through additional permitting, enable the future expansion of production capacity.
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Ecovyst Names Kara L. Thornton Vice President and Chief Human Resources Officer
MALVERN, Pa. , Jan. 16, 2024 /PRNewswire/ -- Ecovyst Inc. (NYSE: ECVT) ("Ecovyst" or the "Company"), a leading integrated and innovative global provider of advanced materials,specialty catalysts and services, today announced that Kara L.
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Ecovyst Announces Expansion and Rebranding of Advanced Silicas Product Portfolio
MALVERN, Pa. , Dec. 7, 2023 /PRNewswire/ -- Ecovyst Inc. (the "Company"), a leading innovative and integrated global provider of advanced materials, specialty catalysts and services, announces a rebranding of its Advanced Silicas product portfolio.
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Ecovyst Inc. to Participate in the Bank of America Leveraged Finance Conference
MALVERN, Pa. , Nov. 21, 2023 /PRNewswire/ -- Ecovyst Inc. (NYSE: ECVT) ("Ecovyst"), a leading integrated and innovative provider of specialty catalysts and services today announced that Gene Shiels, Director of Investor Relations and Nate Connor, Vice President of Finance, will present at the Bank of America Leveraged Finance Conference at 8:10 a.m.
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Ecovyst Inc. (ECVT) Q3 2023 Earnings Call Transcript
Ecovyst Inc. (NYSE:ECVT ) Q3 2023 Earnings Conference Call November 2, 2023 11:00 AM ET Company Participants Gene Shiels - Director of Investor Relations Kurt Bitting - Chief Executive Officer Michael Feehan - Chief Financial Officer Conference Call Participants John McNulty - BMO Capital Markets Aleksey Yefremov - KeyBanc Capital Hamed Khorsand - BWS Financial Daniel Rizzo - Jefferies David Silver - CL King Operator Good morning. My name is Travis and I will be your conference operator today.
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Ecovyst Reports Third Quarter 2023 Results
MALVERN, Pa. , Nov. 2, 2023 /PRNewswire/ -- Ecovyst Inc. (NYSE: ECVT) ("Ecovyst" or the "Company"), a leading integrated and innovative global provider of specialty catalysts and services, today reported results for the third quarter ended September 30, 2023.
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ECVT vs. TRI: Which Stock Is the Better Value Option?
Investors looking for stocks in the Technology Services sector might want to consider either Ecovyst (ECVT) or Thomson Reuters (TRI). But which of these two stocks presents investors with the better value opportunity right now?
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The 7 Best Tech Stocks To Buy Now: October 2023
With the innovation sector moving at full speed, it's time for investors to consider the best tech stocks to buy now but not necessarily for the reason you might assume. Yes, the exchange-traded fund Technology Select Sector SPDR Fund (NYSEARCA: XLK ) has easily outperformed the benchmark SPDR S&P 500 ETF Trust (NYSEARCA: SPY ) over the past five years, 159% to 68%.
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Ecovyst to Host Third Quarter 2023 Earnings Conference Call and Webcast on Thursday, November 2, 2023 at 11:00 a.m. ET
MALVERN, Pa. , Oct. 16, 2023 /PRNewswire/ -- Ecovyst Inc. (NYSE: ECVT), a leading integrated and innovative global provider of specialty catalysts and services, announced today that it will conduct a conference call and audio-only webcast on Thursday, November 2, 2023 at 11:00 a.m.
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ECVT vs. NVEE: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Technology Services sector might want to consider either Ecovyst (ECVT) or NV5 Global (NVEE). But which of these two stocks presents investors with the better value opportunity right now?
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Zeolyst International Unveils New Brand Names for its Product Portfolio
MALVERN, Pa. , Oct. 11, 2023 /PRNewswire/ -- Zeolyst International, an Ecovyst Inc. (NYSE: ECVT) joint venture that is a leading producer of zeolites ("Zeolyst"), is proud to announce the launch of its branded product portfolio.
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Ecovyst Inc. to Host 2023 Investor Day
MALVERN, Pa. , Oct. 3, 2023 /PRNewswire/ -- Ecovyst Inc. (NYSE: ECVT) ("Ecovyst"), a leading integrated and innovative provider of specialty catalysts and services today announced that it will host an Investor Day with financial analysts and institutional investors from 9:00 am to 12:00 pm (Eastern Time) on Tuesday, November 28, 2023, in New York City.
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Ecovyst Announces Planned Expansion of Kansas City, KS Silica Catalyst Production Capability
MALVERN, Pa.--(BUSINESS WIRE)--Ecovyst Inc. (NYSE: ECVT) (“Ecovyst” or the “Company”), a leading integrated and innovative provider of specialty catalysts and services, today announced plans to expand silica catalyst production capability at its manufacturing facility in Kansas City, KS. The company expects that growing consumer demand for plastics will continue to drive the global expansion of polyethylene production over the coming years. Silica supported catalysts play a crucial role in the.
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Ecovyst Inc. to Participate in the CL King 21st Annual Best Ideas Conference
MALVERN, Pa.--(BUSINESS WIRE)--Ecovyst Inc. (NYSE: ECVT) (“Ecovyst”), a leading integrated and innovative provider of specialty catalysts and services today announced that Kurt Bitting, Chief Executive Officer of Ecovyst Inc., and Mike Feehan, Chief Financial Officer of Ecovyst Inc., will present at the CL King 21st Annual Best Ideas Conference from 12:30 to 1:05 p.m. Eastern on Monday, September 18th. The presentation will be broadcast simultaneously via webcast and will be available to member.
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Ecovyst Inc. to Participate in the Jefferies Industrials Conference
MALVERN, Pa.--(BUSINESS WIRE)--Ecovyst Inc. (NYSE: ECVT) (“Ecovyst”), a leading integrated and innovative provider of specialty catalysts and services today announced that Kurt Bitting, Chief Executive Officer of Ecovyst Inc., and Mike Feehan, Chief Financial Officer of Ecovyst Inc., will present at the Jefferies Industrials Conference at 3:30 p.m. Eastern on Wednesday, September 6th. The presentation will be broadcast simultaneously via webcast and will be available to members of the news medi.
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Top 5 Materials Stocks You'll Regret Missing This Quarter - Chemours (NYSE:CC), Ecovyst (NYSE:ECVT)
The most oversold stocks in the materials sector presents an opportunity to buy into undervalued companies.
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Ecovyst Appoints Colleen Grace Donofrio as Vice President – Environment and Sustainability
MALVERN, Pa.--(BUSINESS WIRE)--Ecovyst Inc. (NYSE: ECVT) (“Ecovyst” or the “Company”), a leading integrated and innovative global provider of specialty catalysts and services, today announced that Colleen Grace Donofrio has been appointed as its Vice President – Environment and Sustainability. “I am excited to have Colleen join the team to lead our environmental and sustainability programs,” said Kurt Bitting, Chief Executive Officer of Ecovyst. “Colleen's experience and enthusiasm will help fu.
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Ecovyst Inc. (ECVT) Q2 2023 Earnings Call Transcript
Ecovyst Inc. (NYSE:ECVT ) Q2 2023 Earnings Conference Call August 3, 2023 11:00 AM ET Company Participants Gene Shiels - Director of Investor Relations Kurt Bitting - Chief Executive Officer Michael Feehan - Chief Financial Officer Conference Call Participants John McNulty - BMO Capital Markets David Begleiter - Deutsche Bank Hamed Khorsand - BWS Financial Laurence Alexander - Jefferies David Silver - CL King Operator Good morning. My name is Travis, and I will be your conference operator today.
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Ecovyst (ECVT) Q2 Earnings Surpass Estimates
Ecovyst (ECVT) came out with quarterly earnings of $0.29 per share, beating the Zacks Consensus Estimate of $0.28 per share. This compares to earnings of $0.22 per share a year ago.
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Ecovyst Reports Second Quarter 2023 Results
MALVERN, Pa.--(BUSINESS WIRE)--Ecovyst Inc. (NYSE: ECVT) (“Ecovyst” or the “Company”), a leading integrated and innovative global provider of specialty catalysts and services, today reported results for the second quarter ended June 30, 2023 and updated fiscal 2023 guidance. Second Quarter 2023 Results & Highlights Sales of $184.1 million, compared to $225.2 million in the second quarter of 2022, the reduction driven primarily by lower pass-through of sulfur costs of approximately $32 milli.
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Ecovyst Issues 2022 Sustainability Report
MALVERN, Pa.--(BUSINESS WIRE)--Ecovyst Inc. (NYSE: ECVT) (“Ecovyst” or the “Company”) today announced the release of its 2022 Sustainability Report, “Cultivating Change: Sustainable Innovations for a Greener Future.” This report features 2022 data, including HSES, greenhouse gas emissions, energy, water, and waste results. It further reflects the progress we have made toward achieving the goals established in Ecovyst's inaugural Sustainability report from 2021, released in June 2022. “The value.
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Zeolyst International and Valoregen Announce Strategic Development Program for Advanced Plastic Recycling Technologies
MALVERN, Pa.--(BUSINESS WIRE)--Zeolyst International, an Ecovyst Inc. (NYSE: ECVT) joint venture that is a leading producer of zeolites (“Zeolyst”), and Valoregen, a leading innovator of recycling technologies, proudly announce their cooperation for the development of advanced recycling technologies utilizing Zeolyst International's portfolio of Opal Infinity™ Zeolites. Through this collaboration, Zeolyst International and Valoregen are focused on the development of efficient and cost-effective.
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4 Best Breakout Stocks Worth a Buy for Superb Returns
First Watch Restaurant (FWRG), Universal Stainless & Alloy Products (USAP), Crescent Capital (CCAP) and Ecovyst (ECVT) have been selected as the breakout stocks for today.
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Ecovyst to Host Second Quarter 2023 Earnings Conference Call and Webcast on Thursday, August 3, 2023 at 11:00 a.m. ET
MALVERN, Pa.--(BUSINESS WIRE)--Ecovyst to Host Second Quarter 2023 Earnings Conference Call and Webcast on Thursday, August 3, 2023 at 11:00 a.m. ET.
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Wall Street Analysts Predict a 26.64% Upside in Ecovyst (ECVT): Here's What You Should Know
The consensus price target hints at a 26.6% upside potential for Ecovyst (ECVT). While empirical research shows that this sought-after metric is hardly effective, an upward trend in earnings estimate revisions could mean that the stock will witness an upside in the near term.
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Ecovyst Announces Secondary Offering of 14,000,000 Shares of Common Stock by a Selling Stockholder and Repurchase of Common Stock
MALVERN, Pa.--(BUSINESS WIRE)--Ecovyst Inc. (NYSE: ECVT) (the “Company”) today announced that INEOS Limited (the “Selling Stockholder”) intends to offer for sale 14,000,000 shares of the Company’s common stock, pursuant to the Company’s shelf registration statement filed with the Securities and Exchange Commission (the “Offering”). In addition, the Selling Stockholder intends to grant the underwriter a 30-day option to purchase up to an aggregate of 2,100,000 additional shares of the Company’s common stock. The Selling Stockholder will receive all of the net proceeds from the Offering. No shares are being sold by the Company. Subject to the completion of the Offering, the Company intends to repurchase from the underwriter 4,000,000 shares of the common stock being sold in the Offering at a price per share equal to the price per share paid by the underwriter to the Selling Stockholder in the Offering. The Company intends to fund the share repurchase with cash on hand and cash from operations. The closing of the share repurchase is conditioned on, and expected to occur simultaneously with, the closing of the Offering. The Offering is subject to market and other conditions, and there can be no assurance as to whether or when the Offering may be completed. J.P. Morgan is serving as the underwriter for the Offering. An automatic shelf registration statement (including a prospectus) relating to the Offering was filed with the Securities and Exchange Commission (“SEC”) on April 26, 2021 and became effective upon filing. Before you invest, you should read the prospectus included in that registration statement and the documents incorporated by reference in that registration statement as well as the prospectus supplement related to the Offering. You may obtain these documents for free by visiting EDGAR on the SEC website at www.sec.gov. When available, copies of the prospectus supplement and accompanying prospectus related to the Offering may also be obtained from J.P. Morgan, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, by telephone: 1-866-803-9204, or by emailing: prospectus-eq_fi@jpmchase.com. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction. Any offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time prior to notice of its acceptance given after the effective date. About Ecovyst Ecovyst Inc. and subsidiaries is a leading integrated and innovative global provider of specialty catalysts and services. We support customers globally through our strategically located network of manufacturing facilities. We believe that our products, which are predominantly inorganic, and services contribute to improving the sustainability of the environment. We have two uniquely positioned specialty businesses: Ecoservices provides sulfuric acid recycling to the North American refining industry for the production of alkylate and provides on-purpose virgin sulfuric acid for water treatment, mining, and industrial applications; and Catalyst Technologies provides finished silica catalysts and catalyst supports necessary to produce high strength and high stiffness plastics and, through its Zeolyst joint venture, supplies zeolites used for catalysts that help produce renewable fuels, remove nitrogen oxides from diesel engine emissions as well as sulfur from fuels during the refining process. Note on Forward-Looking Statements This press release includes statements that express our opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and therefore are, or may be deemed to be, “forward-looking statements.” These forward-looking statements can generally be identified by the use of forward-looking terminology, including the terms “believes,” “expects,” “may,” “will,” “should,” “seeks,” “projects,” “approximately,” “intends,” “plans,” “estimates” or “anticipates,” or, in each case, their negatives or other variations or comparable terminology. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future, including risks and uncertainties relating to the consummation of the proposed Offering by the Selling Stockholder, the repurchase of common stock, and the risks identified, or incorporated by reference, in the prospectus supplement or accompanying prospectus.
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Ecovyst Inc. (ECVT) Q1 2023 Earnings Call Transcript
Ecovyst Inc. (NYSE:ECVT ) Q1 2023 Earnings Conference Call May 4, 2023 11:00 AM ET Company Participants Gene Shiels - Director of Investor Relations Kurt Bitting - Chief Executive Officer & Director Mike Feehan - Chief Financial Officer Conference Call Participants David Huang - Deutsche Bank Hamed Khorsand - BWS Financial Operator Good morning. My name is Todd, and I will be your conference operator today.
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CORRECTING and REPLACING Ecovyst Reports First Quarter 2023 Results
MALVERN, Pa.--(BUSINESS WIRE)--The correction provides an update to the weighted average diluted shares outstanding presented in the condensed consolidated statements of income for the three months ended March 31, 2023, which was corrected to 122,178,867 shares. There is no change to diluted (loss) earnings per share. The updated release reads: ECOVYST REPORTS FIRST QUARTER 2023 RESULTS Ecovyst Inc. (NYSE: ECVT) (“Ecovyst” or the “Company”), a leading integrated and innovative global provider of specialty catalysts and services, today reported results for the first quarter ended March 31, 2023. First Quarter 2023 Results & Highlights Sales of $160.9 million, compared to $179.7 million in the first quarter of 2022, reflecting lower sales volume primarily associated with Winter Storm Elliott and extended maintenance turnaround activity at one of the sites, as well as the timing of customer orders in Catalyst Technologies, partially offset by continued strong pricing. Net loss of $1.5 million compared to net income of $7.9 million in the first quarter of 2022, with diluted net loss per share of $0.01; Adjusted net income of $6.8 million with Adjusted diluted earnings per share of $0.06. Adjusted EBITDA of $42.9 million, with Adjusted EBITDA margins of 23.4%. In conjunction with a secondary offering in which a private equity owner sold their remaining interest in the Company, repurchased 3,000,000 shares at an average price of $9.95, for total cost of $29.9 million. Adjusted EBITDA and Free Cash Flow guidance for full year remains unchanged. In March, recognized three outstanding teams with the company’s 2022 Sustainability Leadership Awards; the Ecoservices Baton Rouge site was recognized with the most impactful Climate Change Reduction Project award for a significant reduction in energy consumption and related GHG emissions. Financial results and outlook include non-GAAP financial measures. These non-GAAP measures are more fully described and are reconciled from the respective measures determined under GAAP in “Presentation of Non-GAAP Financial Measures” and the attached appendix. “During the first quarter of 2023, demand trends across the majority of end uses served by Ecovyst remained favorable, and we currently expect demand fundamentals to provide opportunities for growth on a full-year basis. Our financial results for the first quarter reflect the factors that we anticipated, and discussed on our fourth quarter earnings call in late February, including the adverse impact of Winter Storm Elliott, an extended turnaround during the quarter at one of our Ecoservices sites, and order timing in Catalyst Technologies,” said Kurt J. Bitting, Ecovyst’s Chief Executive Officer. “Winter Storm Elliott outages and an extended maintenance turnaround at one of our facilities constrained our ability to produce inventory, and both events limited sales of virgin sulfuric acid in the first quarter,” added Bitting. "However, the 2023 outlook for demand for virgin sulfuric acid remains firm, driven by underlying demand for low carbon technologies”. “We expect sales for our Catalyst Technologies business, including our proportionate share of our ZI joint venture, to increase in 2023,” said Bitting. “As our first quarter 2023 financial results were in line with our internal expectations, our Adjusted EBITDA guidance for full-year 2023 remains unchanged.” First Quarter 2023 Results Sales for the quarter ended March 31, 2023 were $160.9 million, compared to $179.7 million in the first quarter of 2022. The change was driven primarily by lower sales volume, including the adverse impact of Winter Storm Elliott and the extended turnaround activity on virgin sulfuric acid sales in our Ecoservices business, as well as lower sales of hydrocracking and specialty catalysts associated with order timing, and lower sales of polyethylene catalysts in our Catalyst Technologies business, partially offset by continued higher pricing across both businesses. Net loss was $1.5 million, compared to net income of $7.9 million in the first quarter of 2022, with a diluted net loss per share of $0.01. Adjusted net income was $6.8 million with an Adjusted diluted earnings per share of $0.06. Adjusted EBITDA was $42.9 million, compared to $59.2 million in the first quarter of 2022, with the change reflecting lower sales volume, higher unplanned repair and maintenance costs, partially offset by higher pricing in both businesses. Review of Segment Results and Business Trends In 2022, demand across most product categories, end-uses and customers was positive, and we anticipate relative stability in demand for the remainder of 2023. Inflationary pressures, including higher costs for sulfur, energy, logistics and other raw materials, were significant in 2022, however, our contractual pass-through mechanisms and targeted price increases serve to mitigate the adverse impacts of higher costs on our businesses. While we expect inflationary pressures to remain a factor in 2023, we expect average sulfur costs in 2023 to be lower than in 2022. We expect supply chain constraints, including limited availability and higher costs for transportation and logistics, to remain a factor in 2023. In response, we have taken steps that we believe will help minimize the associated impact on our businesses through enhanced coordination and planning with customers and suppliers using our strategic network. On December 23rd, our Ecoservices business was adversely affected by Winter Storm Elliott. The storm disrupted operations at a number of our sites, impacting production and resulting in unplanned repair and maintenance costs. The production outages arising from Winter Storm Elliott limited our ability to produce inventory in advance of significant planned turnaround activity and to meet customer demand, resulting in constrained availability and lower sales of virgin sulfuric acid in the first quarter of 2023. Ecoservices Our regeneration services support the production of alkylate, a high value gasoline component critical for meeting stringent gasoline standards and for producing premium grade gasoline. Tightening of gasoline standards and increased demand for higher-octane premium grade gasoline to power high compression, more fuel efficient engines resulted in higher utilization for our customers’ alkylation units. High U.S. refinery utilization in 2022 and the first quarter of 2023 supported our customers’ production of alkylate and translated into robust demand for our regeneration services. We expect refinery utilization to remain high through the remainder of 2023. Sulfuric acid is a widely used chemicals and it plays a key role in producing a wide array of materials, particularly those supporting green infrastructure. We expect our sales of virgin sulfuric acid in 2023 to benefit from healthy demand in the mining segment for metals and minerals that provide conductivity in low carbon technologies, as well as from stable demand in a range of industrial applications including construction, auto and packaging materials. Our catalyst activation services provide for ex-situ sulfiding and pre-activation for hydro-processing catalysts, with demand growing in both traditional and renewable fuel production. We believe sustainability trends will continue to favor our treatment services business as customers seek the sustainability-focused waste solutions offered by Ecoservices. Sales were $137.8 million, compared to $154.0 million in the first quarter of 2022. The change in sales was principally due to lower sales of virgin sulfuric acid associated with the adverse impact of Winter Storm Elliott, extended maintenance at one of our manufacturing locations, and lower pass-through of sulfur costs of approximately $5 million, partially offset by higher pricing in regeneration services. Adjusted EBITDA was $36.8 million, compared to $49.3 million in the first quarter of 2022, with the change largely attributable to lower virgin sulfuric acid sales volume, higher unplanned repair and maintenance costs, and costs associated with planned turnaround activity, partially offset by higher pricing for regeneration services. Catalyst Technologies Our silica catalysts business supplies critical catalyst components for the production of high-density polyethylene, a high-strength and high-stiffness plastic used in bottles, containers, and molded applications and linear low-density polyethylene used predominately for films. Growth in demand for polyethylene films and packaging continued to drive higher sales of polyethylene catalysts. We also supply specialty catalysts to customers for use in the production of both traditional and renewable fuels, petrochemicals, and emission control systems for both on-road and non-road diesel engines. Demand for traditional fuels remained positive and demand for renewable fuels increased. We also supply niche custom catalysts in the refining and petrochemical industries. We continue to expect growth in demand for catalysts used in these applications. During the first quarter of 2023, Silica Catalysts sales were $23.1 million, compared to $25.7 million in the first quarter of 2022, with the change reflecting lower sales of polyethylene catalysts. Zeolyst Joint Venture sales were $22.1 million, compared to $29.0 million in the first quarter of 2022. The change in sales was largely due to the comparative timing of customer orders for hydrocracking and specialty catalysts sales, which are expected to be recognized later in 2023. Adjusted EBITDA, which includes the Zeolyst Joint Venture, was $13.0 million, compared to $17.0 million in the first quarter of 2022, with the change reflecting lower sales volume on timing of customer orders, partially offset by continued strong pricing and favorable product mix. Cash Flows and Balance Sheet Cash flows from operating activities was $4.1 million for the three months ended March 31, 2023, compared to $6.4 million for the three months ended March 31, 2022. At March 31, 2023, the Company had cash and cash equivalents of $61.6 million, total gross debt of $884.3 million and availability under the ABL facility of $57.3 million, after giving effect to $4.1 million of outstanding letters of credit and no revolving credit facility borrowings, for total available liquidity of $118.9 million. The net debt to net income ratio was 13.7x as of March 31, 2023 and the net debt leverage ratio was 3.2x as of March 31, 2023. 2023 Financial Outlook Full year 2023 guidance is as follows: Sales of $730 million to $760 million1 (changed from $760 million to $790 million to reflect lower projected pass-through of energy costs and lower expected virgin sulfuric acid volume resulting from Winter Storm Elliott and the significant first quarter 2023 turnaround activity). Sales of $145 million to $155 million for proportionate 50% share of Zeolyst Joint Venture, which is excluded from GAAP Sales Adjusted EBITDA2 of $285 million to $300 million, up 6% from 2022 at the mid-point of the range Adjusted Free Cash Flow2 of $115 million to $130 million Capital expenditures of $60 million to $70 million Interest expense of $45 million to $50 million Depreciation & Amortization Ecovyst - $80 million to $90 million Zeolyst J.V. - $14 million to $16 million 1Sales outlook for 2023 assumes lower average sulfur prices, compared to 2022, and lower projected pass-through of sulfur costs of approximately $90 million. 2In reliance upon the unreasonable efforts exemption provided under Item 10(e)(1)(i)(B) of Regulation S-K, the Company is not able to provide a reconciliation of its non-GAAP financial guidance to the corresponding GAAP measures without unreasonable effort because of the inherent difficulty in forecasting and quantifying certain amounts necessary for such a reconciliation such as certain non-cash, nonrecurring or other items that are included in net income and EBITDA as well as the related tax impacts of these items and asset dispositions / acquisitions and changes in foreign currency exchange rates that are included in cash flow, due to the uncertainty and variability of the nature and amount of these future charges and costs. Because this information is uncertain, the Company is unable to address the probable significance of the unavailable information, which could be material to future results. Stock Repurchase Authorization In April 2022, the Company’s Board of Directors approved a stock repurchase program authorizing the repurchase of up to $450 million of the Company’s outstanding common stock over the next four years. To date, repurchases under the program have been funded using cash on hand and cash generated from operations, with repurchases conducted through negotiated transactions with an equity sponsor, as well as through open market repurchases. Future repurchases may also be conducted through negotiated transactions with an equity sponsor, open market repurchases or other means, including through Rule 10b-18 trading plans or through the use of other techniques such as accelerated share repurchases. During the first quarter of 2023, in connection with a secondary offering of the Company’s common stock in March 2023, the Company repurchased 3,000,000 shares of its common stock sold in the offering from the underwriter at a price of $9.95 per share concurrently with the closing of the offering, for a total of $29.9 million. For possible future repurchases, the actual timing, number, and nature of shares repurchased will depend on a variety of factors, including stock price, trading volume, and general business and market conditions. The repurchase program does not obligate the Company to acquire any number of shares in any specific period, or at all, and the repurchase program may be amended, suspended or discontinued at any time at the Company’s discretion. As of March 31, 2023, $283.4 million was available for additional share repurchases under the program. Conference Call and Webcast Details On Thursday, May 4, 2023, Ecovyst management will review the first quarter results during a conference call and audio-only webcast scheduled for 11:00 a.m. Eastern Time. Conference Call: Investors may listen to the conference call live via telephone by dialing 1 (800) 267-6316 (domestic) or 1 (203) 518-9848 (international) and use the participant code ECVTQ123. Webcast: An audio-only live webcast of the conference call and presentation materials can be accessed at https://investor.ecovyst.com. A replay of the conference call/webcast will be made available at https://investor.ecovyst.com/events-presentations. About Ecovyst Inc. Ecovyst Inc. and subsidiaries is a leading integrated and innovative global provider of specialty catalysts and services. We support customers globally through our strategically located network of manufacturing facilities. We believe that our products, which are predominantly inorganic, and services contribute to improving the sustainability of the environment. We have two uniquely positioned specialty businesses: Ecoservices provides sulfuric acid recycling to the North American refining industry for the production of alkylate and provides on-purpose virgin sulfuric acid for water treatment, mining, and industrial applications; and Catalyst Technologies provides finished silica catalysts and catalyst supports necessary to produce high strength and high stiffness plastics and, through its Zeolyst joint venture, supplies zeolites used for catalysts that help produce renewable fuels, remove nitrogen oxides from diesel engine emissions as well as sulfur from fuels during the refining process. For more information, see our website at https://www.ecovyst.com. Presentation of Non-GAAP Financial Measures In addition to the results provided in accordance with U.S. generally accepted accounting principles (“GAAP”) throughout this press release, the Company has provided non-GAAP financial measures — Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income, Adjusted free cash flow, Adjusted diluted income per share, and net debt leverage ratio (collectively, “Non-GAAP Financial Measures”) — which present results on a basis adjusted for certain items. The Company uses these Non-GAAP Financial Measures for business planning purposes and in measuring its performance relative to that of its competitors. The Company believes that these Non-GAAP Financial Measures are useful financial metrics to assess its operating performance from period-to-period by excluding certain items that the Company believes are not representative of its core business. These Non-GAAP Financial Measures are not intended to replace, and should not be considered superior to, the presentation of the Company’s financial results in accordance with GAAP. The use of the Non-GAAP Financial Measures terms may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures. These Non-GAAP Financial Measures are reconciled from the respective measures under GAAP in the appendix below. Zeolyst Joint Venture The Company’s zeolite catalysts product group operates through its Zeolyst Joint Venture, which is accounted for as an equity method investment in accordance with GAAP. The presentation of the Zeolyst Joint Venture’s sales represents 50% of the sales of the Zeolyst Joint Venture. The Company does not record sales by the Zeolyst Joint Venture as revenue and such sales are not consolidated within the Company’s results of operations. However, the Company’s Adjusted EBITDA reflects the share of earnings of the Zeolyst Joint Venture that have been recorded as equity in net income from affiliated companies in the Company’s consolidated statements of income for such periods and includes Zeolyst Joint Venture adjustments on a proportionate basis based on the Company’s 50% ownership interest. Accordingly, the Company’s Adjusted EBITDA margins are calculated including 50% of the sales of the Zeolyst Joint Venture for the relevant periods in the denominator. Note on Forward-Looking Statements Some of the information contained in this press release constitutes “forward-looking statements.” Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “projects” and similar references to future periods. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Examples of forward-looking statements include, but are not limited to, statements regarding our future results of operations, financial condition, liquidity, prospects, growth, strategies, capital allocation program (including the stock repurchase program), product and service offerings, expected demand trends and our 2023 financial outlook. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you, therefore, against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, regional, national or global political, economic, business, competitive, market and regulatory conditions, including the tariffs and trade disputes, currency exchange rates, the effects of inflation and other factors, including those described in the sections titled “Risk Factors” and “Management’s Discussion & Analysis of Financial Condition and Results of Operations” in our filings with the SEC, which are available on the SEC’s website at www.sec.gov. These forward-looking statements speak only as of the date of this release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by applicable law. ECOVYST INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in millions, except share and per share amounts) Three months ended March 31, 2023 2022 % Change Sales $ 160.9 $ 179.7 (10.5 ) % Cost of goods sold 124.4 132.0 (5.8 ) % Gross profit 36.5 47.7 (23.5 ) % Selling, general and administrative expenses 21.1 23.5 (10.2 ) % Other operating expense, net 6.7 7.7 (13.0 ) % Operating income 8.7 16.5 (47.3 ) % Equity in net (income) from affiliated companies (0.2 ) (5.7 ) (96.5 ) % Interest expense, net 9.9 8.5 16.5 % Other (income) expense, net (0.4 ) 0.1 (500.0 ) % (Loss) income before income taxes (0.6 ) 13.6 (104.4 ) % Provision for income taxes 0.9 5.7 (84.2 ) % Effective tax rate (180.7 ) % 42.1 % Net (loss) income attributable to Ecovyst Inc $ (1.5 ) $ 7.9 (119.0 ) % (Loss) Earnings per share: Basic (loss) earnings per share $ (0.01 ) $ 0.06 Diluted (loss) earnings per share $ (0.01 ) $ 0.06 Weighted average shares outstanding: Basic 122,178,867 137,684,773 Diluted 122,178,867 138,749,065 ECOVYST INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, except share and per share amounts) March 31, 2023 December 31, 2022 ASSETS Cash and cash equivalents $ 61.6 $ 110.9 Accounts receivable, net 66.6 74.8 Inventories, net 45.8 44.4 Derivative assets 16.0 18.5 Prepaid and other current assets 31.3 19.1 Total current assets 221.3 267.7 Investments in affiliated companies 437.2 436.0 Property, plant and equipment, net 583.7 584.9 Goodwill 403.8 403.2 Other intangible assets, net 126.7 129.9 Right-of-use lease assets 27.6 28.3 Other long-term assets 29.7 34.6 Total assets $ 1,830.0 $ 1,884.6 LIABILITIES Current maturities of long-term debt $ 9.0 $ 9.0 Accounts payable 34.1 40.0 Operating lease liabilities—current 8.1 8.2 Accrued liabilities 57.8 72.2 Total current liabilities 109.0 129.4 Long-term debt, excluding current portion 864.1 865.9 Deferred income taxes 136.6 136.2 Operating lease liabilities—noncurrent 19.4 20.0 Other long-term liabilities 26.8 25.8 Total liabilities 1,155.9 1,177.3 Commitments and contingencies EQUITY Common stock ($0.01 par); authorized shares 450,000,000; issued shares 140,604,563 and 139,571,272 on March 31, 2023 and December 31, 2022, respectively; outstanding shares 120,124,260 and 122,186,238 on March 31, 2023 and December 31, 2022, respectively 1.4 1.4 Preferred stock ($0.01 par); authorized shares 50,000,000; no shares issued or outstanding on March 31, 2023 and December 31, 2022 — — Additional paid-in capital 1,096.3 1,091.5 Accumulated deficit (243.5 ) (242.0 ) Treasury stock, at cost; shares 20,480,303 and 17,385,034 on March 31, 2023 and December 31, 2022, respectively (180.3 ) (149.6 ) Accumulated other comprehensive income 0.2 6.0 Total equity 674.1 707.3 Total liabilities and equity $ 1,830.0 $ 1,884.6 ECOVYST INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Three months ended March 31, 2023 2022 Cash flows from operating activities: (in millions) Net (loss) income attributable to Ecovyst Inc. $ (1.5 ) $ 7.9 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation 16.7 16.0 Amortization 3.5 3.5 Amortization of deferred financing costs and original issue discount 0.5 0.5 Foreign currency exchange (gain) loss (0.4 ) 0.6 Deferred income tax provision 2.8 9.3 Net loss on asset disposals 1.2 0.1 Stock compensation 4.1 7.3 Equity in net income from affiliated companies (0.2 ) (5.7 ) Dividends received from affiliated companies — 15.0 Other, net (4.0 ) (7.4 ) Working capital changes that provided (used) cash: Receivables 8.4 (10.4 ) Inventories (1.3 ) (1.0 ) Prepaids and other current assets (9.7 ) (3.6 ) Accounts payable (1.9 ) 2.2 Accrued liabilities (14.1 ) (27.9 ) Net cash provided by operating activities 4.1 6.4 Cash flows from investing activities: Purchases of property, plant and equipment (18.7 ) (10.8 ) Payments for business divestiture, net of cash — (3.7 ) Other, net — 0.1 Net cash used in investing activities (18.7 ) (14.4 ) Cash flows from financing activities: Repayments of long-term debt (2.3 ) (2.3 ) Repurchases of common shares (29.9 ) — Tax withholdings on equity award vesting (0.9 ) (0.3 ) Repayment of financing obligations (0.7 ) — Other, net 0.2 — Net cash used in financing activities (33.6 ) (2.6 ) Effect of exchange rate changes on cash and cash equivalents (1.1 ) (0.6 ) Net change in cash and cash equivalents (49.3 ) (11.2 ) Cash and cash equivalents at beginning of period 110.9 140.9 Cash and cash equivalents at end of period $ 61.6 $ 129.7 Appendix Table A-1: Reconciliation of Net (Loss) Income to Adjusted EBITDA Three months ended March 31, 2023 2022 (in millions) Reconciliation of net (loss) income attributable to Ecovyst Inc. to Adjusted EBITDA Net (loss) income attributable to Ecovyst Inc. $ (1.5 ) $ 7.9 Provision for income taxes 0.9 5.7 Interest expense, net 9.9 8.5 Depreciation and amortization 20.2 19.5 EBITDA 29.5 41.6 Joint venture depreciation, amortization and interest(a) 3.6 4.1 Amortization of investment in affiliate step-up(b) 1.6 1.6 Net loss on asset disposals(c) 1.2 0.1 Foreign currency exchange (gain) loss(d) (0.7 ) 0.6 LIFO expense(e) 1.4 0.2 Transaction and other related costs(f) 1.4 4.3 Equity-based compensation 4.1 7.3 Restructuring, integration and business optimization expenses(g) 1.0 0.4 Other(h) (0.2 ) (1.0 ) Adjusted EBITDA $ 42.9 $ 59.2 Descriptions to Ecovyst Non-GAAP Reconciliations (a) We use Adjusted EBITDA as a performance measure to evaluate our financial results. Because the Catalyst Technologies segment includes our 50% interest in the Zeolyst Joint Venture, we include an adjustment for our 50% proportionate share of depreciation, amortization and interest expense of the Zeolyst Joint Venture. (b) Represents the amortization of the fair value adjustments associated with the equity affiliate investment in the Zeolyst Joint Venture as a result of the combination of the businesses of PQ Holdings Inc. and Eco Services Operations LLC in May 2016. We determined the fair value of the equity affiliate investment and the fair value step-up was then attributed to the underlying assets of the Zeolyst Joint Venture. Amortization is primarily related to the fair value adjustments associated with fixed assets and intangible assets, including customer relationships and technical know-how. (c) When asset disposals occur, we remove the impact of net gain/loss of the disposed asset because such impact primarily reflects the non-cash write-off of long-lived assets no longer in use. (d) Reflects the exclusion of the foreign currency transaction gains and losses in the statements of income related to the non-permanent intercompany debt denominated in local currency translated to U.S. dollars. (e) Represents non-cash adjustments to the Company’s LIFO reserves for certain inventories in the U.S. that are valued using the LIFO method, which we believe provides a means of comparison to other companies that may not use the same basis of accounting for inventories. (f) Relates to certain transaction costs, including debt financing, due diligence and other costs related to transactions that are completed, pending or abandoned, that we believe are not representative of our ongoing business operations. (g) Includes the impact of restructuring, integration and business optimization expenses, which are incremental costs that are not representative of our ongoing business operations. (h) Other consists of adjustments for items that are not core to our ongoing business operations. These adjustments include environmental remediation and other legal costs, expenses for capital and franchise taxes, and defined benefit pension and postretirement plan (benefits) costs, for which our obligations are under plans that are frozen. Also included in this amount are adjustments to eliminate the benefit realized in cost of goods sold of the allocation of a portion of the contract manufacturing payments under the five-year agreement with the buyer of the Performance Chemicals business to the financing obligation under the failed sale-leaseback. Included in this line-item are rounding discrepancies that may arise from rounding from dollars (in thousands) to dollars (in millions). Appendix Table A-2: Reconciliation of Net (Loss) Income and EPS to Adjusted Net Income and Adjusted EPS(1) Three months ended March 31, 2023 2022 Pre-tax amount Tax expense (benefit) After-tax amount Per share, basic Per share, diluted Pre-tax amount Tax expense (benefit) After-tax amount Per share, basic Per share, diluted (in millions, except share and per share amounts) Net (loss) income attributable to Ecovyst Inc $ (0.6 ) $ 0.9 $ (1.5 ) $ (0.01 ) $ (0.01 ) $ 13.6 $ 5.7 $ 7.9 $ 0.06 $ 0.06 Amortization of investment in affiliate step-up(b) 1.6 0.4 1.2 0.01 0.01 1.6 0.4 1.2 0.01 0.01 Net loss on asset disposals(c) 1.2 0.3 0.9 0.01 0.01 0.1 — 0.1 — — Foreign currency exchange (gain) loss(d) (0.7 ) (0.1 ) (0.6 ) (0.01 ) (0.01 ) 0.6 0.1 0.5 — — LIFO expense(e) 1.4 0.4 1.0 0.01 0.01 0.2 0.1 0.1 — — Transaction and other related costs(f) 1.4 0.4 1.0 0.01 0.01 4.3 1.0 3.3 0.02 0.02 Equity-based compensation(2) 4.1 (0.1 ) 4.2 0.03 0.03 7.3 (0.3 ) 7.6 0.06 0.05 Restructuring, integration and business optimization expenses(g) 1.0 0.1 0.9 0.01 0.01 0.4 0.1 0.3 0.01 0.02 Other(h) (0.2 ) 0.1 (0.3 ) — — (1.0 ) (0.3 ) (0.7 ) (0.01 ) (0.01 ) Adjusted Net Income(1) $ 9.2 $ 2.4 $ 6.8 $ 0.06 $ 0.06 $ 27.1 $ 6.8 $ 20.3 $ 0.15 $ 0.15 Weighted average shares outstanding 122,178,867 123,575,736 137,684,773 138,749,065 See Appendix Table A-1 for Descriptions to Ecovyst Non-GAAP Reconciliations in the table above. We define adjusted net income as net income attributable to Ecovyst adjusted for non-operating income or expense and the impact of certain non-cash or other items that are included in net income that we do not consider indicative of our ongoing operating performance. Adjusted net income is presented as a key performance indicator as we believe it will enhance a prospective investor’s understanding of our results of operations and financial condition. Adjusted net income may not be comparable with net income or adjusted net income as defined by other companies. (2) Includes tax adjustments for the shortfall in stock compensation. The adjustments to net income attributable to Ecovyst Inc. are shown net of applicable tax rates of 25.6% and 24.7% for the three months ended March 31, 2023 and 2022, respectively, except for the foreign currency exchange (gain) loss and equity-based compensation. The tax effect on equity-based compensation is derived by removing the tax effect of any equity-based compensation expense disallowed as a result of its inclusion within IRC Sec. 162m, and adding the tax effect of equity-based stock compensation shortfall recorded as a discrete item. The tax effect of the foreign currency exchange (gain) loss is derived from tax effecting the actual year to date foreign currency exchange (gain) loss by the respective local country statutory rates which is recorded as a discrete item. Appendix Table A-3: Sales and Adjusted EBITDA by Business Segment Three months ended March 31, 2023 2022 % Change Sales: Ecoservices $ 137.8 $ 154.0 (10.5 ) % Silica Catalysts 23.1 25.7 (10.1 ) % Total sales $ 160.9 $ 179.7 (10.5 ) % Zeolyst Joint Venture sales $ 22.1 $ 29.0 (23.8 ) % Adjusted EBITDA: Ecoservices $ 36.8 $ 49.3 (25.4 ) % Catalyst Technologies 13.0 17.0 (23.5 ) % Unallocated corporate expenses (6.9 ) (7.1 ) (2.8 ) % Total Adjusted EBITDA $ 42.9 $ 59.2 (27.5 ) % Adjusted EBITDA Margin: Ecoservices 26.7 % 32.0 % Catalyst Technologies(1) 28.8 % 31.1 % Total Adjusted EBITDA Margin(1) 23.4 % 28.4 % (1) Adjusted EBITDA margin calculation includes proportionate 50% share of sales from the Zeolyst Joint Venture. Appendix Table A-4: Adjusted Free Cash Flow Three months ended March 31, 2023 2022 (in millions) Net cash provided by operating activities $ 4.1 $ 6.4 Less: Purchases of property, plant and equipment(1) (18.7 ) (10.8 ) Free cash flow $ (14.6 ) $ (4.4 ) Adjustments to free cash flow: Cash paid for costs related to segment disposals — 13.6 Adjusted free cash flow(2) $ (14.6 ) $ 9.2 Net cash used in by investing activities(3) $ (18.7 ) $ (14.4 ) Net cash used in financing activities $ (33.6 ) $ (2.6 ) (1) Excludes the Company’s proportionate 50% share of capital expenditures from the Zeolyst Joint Venture. (2) (3) Appendix Table A-5: Net Debt Leverage Ratio March 31, 2023 March 31, 2022 (in millions, except ratios) Total debt $ 884.3 $ 893.3 Less: Cash and cash equivalents 61.6 129.7 Net debt $ 822.7 $ 763.6 Trailing twelve months: Net income 59.9 12.4 Adjusted EBITDA(1) 260.5 244.5 Net debt to net income ratio 13.7 x 61.6 x Net debt leverage ratio 3.2 x 3.1 x (1) Refer to the Reconciliation of Net (Loss) Income to Adjusted EBITDA schedule for the reconciliation to the most comparable GAAP financial measure.
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Ecovyst (ECVT) Meets Q1 Earnings Estimates
Ecovyst (ECVT) came out with quarterly earnings of $0.06 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.15 per share a year ago.
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Ecovyst: Undervalued and Under the Radar
The industrial world is full of companies that operate in special niches, many of which investors are not aware of, but are critical to global growth or a clean energy future. On of these under-the-radar companies is Ecovyst Inc. ( ECVT , Financial), which provides specialty catalysts and related services on a global basis.
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Ecovyst to Host First Quarter 2023 Earnings Conference Call and Webcast on Thursday, May 4, 2023 at 11:00 a.m. ET
MALVERN, Pa.--(BUSINESS WIRE)--Ecovyst Inc. (NYSE: ECVT), a leading integrated and innovative global provider of specialty catalysts and services, announced today that it will conduct a conference call and audio-only webcast on Thursday, May 4, 2023 at 11:00 a.m. Eastern Time to review its first quarter 2023 financial results. Investors may listen to the conference call live via telephone by dialing 1 (800) 267-6316 (domestic) or 1 (203) 518-9848 (international) and use the participant code ECVTQ123. An audio-only live webcast of the conference call and presentation materials can be accessed at https://investor.ecovyst.com. A replay of the conference call/webcast will be made available at https://investor.ecovyst.com/events-presentations. About Ecovyst Inc. Ecovyst Inc. and subsidiaries is a leading integrated and innovative global provider of specialty catalysts and services. We support customers globally through our strategically located network of manufacturing facilities. We believe that our products, which are predominantly inorganic, and services contribute to improving the sustainability of the environment. We have two uniquely positioned specialty businesses: Ecoservices provides sulfuric acid recycling to the North American refining industry for the production of alkylate and provides on-purpose virgin sulfuric acid for water treatment, mining, and industrial applications; and Catalyst Technologies provides finished silica catalysts and catalyst supports necessary to produce high strength and high stiffness plastics and, through its Zeolyst joint venture, supplies zeolites used for catalysts that remove nitric oxide from diesel engine emissions as well as sulfur from fuels during the refining process. For more information, see our website at https://www.ecovyst.com.
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Ecovyst Announces Winners of its 2022 Sustainability Leadership Awards
MALVERN, Pa.--(BUSINESS WIRE)--Ecovyst Inc. (NYSE: ECVT) (“Ecovyst”), a leading innovative and integrated global provider of specialty catalysts and services, today announced that it has recognized three outstanding teams with the company’s 2022 Sustainability Leadership Awards. The award winners, which were selected by Chief Executive Officer Kurt J. Bitting and members of the executive management team, are the Ecoservices Baton Rouge site for the most impactful Climate Change Reduction Project, the cross-functional team developing Silica Catalyst for Bio-Butadiene manufacture for the Best New Sustainable Product and/or Process and the Ecoservices Baytown site for the Most Impactful Social Contribution during 2022. “Over the last year, Ecovyst has placed sustainability at the forefront of our strategy development, and has outlined ambitious 2025 and 2030 Sustainability Goals in our 2021 CSR (Corporate Social Responsibility) Report,” said Mr. Bitting. “As part of our sustainability focus, Ecovyst also launched its Sustainability Leadership Award program to recognize Ecovyst sites, work teams or individual employees that demonstrate meaningful sustainability improvements in the product, process and social impact areas.” To qualify for the awards, sites, teams or work groups had to submit detailed applications describing their particular projects and the resulting sustainability improvements. From the many impressive projects, the following projects or teams were selected as the 2022 Sustainability Award Recipients: Ecovyst Environmental Initiative Award for the Most Impactful Climate Change Reduction Project – Baton Rouge Furnace Optimization Project reduces energy consumption and related GHG emissions by about 22%. Ecovyst Sustainable Innovation Award for the Best New Sustainable Product and/or Process – Ecovyst team developing an innovative silica catalyst for bio-butadiene manufacture, replacing petroleum-based butadiene, for use in green innovative synthetic rubbers. Ecovyst Community Impact Award for the Most Impactful Social Contribution – Baytown site for Multiple Community Partnerships, including long-term assistance to the local elementary school as a Partner In Education (PIE); support to mutual aid groups/CAP; and other food bank and community clean-up efforts. We congratulate these award recipients for their leadership in supporting our sustainability goals and proudly thank all of our applicants and employees who demonstrate their commitment to sustainability on a daily basis. About Ecovyst Inc. Ecovyst Inc. and subsidiaries is a leading integrated and innovative global provider of specialty catalysts and services. We support customers globally through our strategically located network of manufacturing facilities. We believe that our products, which are predominantly inorganic, and services contribute to improving the sustainability of the environment. We have two uniquely positioned specialty businesses: Ecoservices provides sulfuric acid recycling to the North American refining industry for the production of alkylate and provides on-purpose virgin sulfuric acid for water treatment, mining, and industrial applications; and Catalyst Technologies provides finished silica catalysts and catalyst supports necessary to produce high strength and high stiffness plastics and, through its Zeolyst joint venture, supplies zeolites used for catalysts that remove nitrogen oxides from diesel engine emissions as well as sulfur from fuels during the refining process. For more information, see our website at https://www.ecovyst.com.
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Ecovyst Announces Secondary Offering of 11,490,444 Shares of Common Stock by Selling Stockholders and Repurchase of Common Stock
MALVERN, PA.--(BUSINESS WIRE)--Ecovyst Inc. (NYSE: ECVT) (the “Company”) today announced that funds affiliated with CCMP Capital Advisors, LP (the “Selling Stockholders”) intend to offer for sale their remaining interest in the Company, 11,490,444 shares of the Company’s common stock, pursuant to the Company’s shelf registration statement filed with the Securities and Exchange Commission (the “Offering”). The Selling Stockholders will receive all of the net proceeds from the Offering. No shares are being sold by the Company. Subject to the completion of the Offering, the Company intends to repurchase from the underwriter 3,000,000 shares of the common stock being sold in the Offering at a price per share equal to the price per share paid by the underwriter to the Selling Stockholders in the Offering. The Company intends to fund the share repurchase with cash on hand and cash from operations. The closing of the share repurchase is conditioned on, and expected to occur simultaneously with, the closing of the Offering. The Offering is subject to market and other conditions, and there can be no assurance as to whether or when the Offering may be completed. Jefferies is serving as the underwriter for the Offering. An automatic shelf registration statement (including a prospectus) relating to the Offering was filed with the Securities and Exchange Commission (“SEC”) on April 26, 2021 and became effective upon filing. Before you invest, you should read the prospectus included in that registration statement and the documents incorporated by reference in that registration statement as well as the prospectus supplement related to the Offering. You may obtain these documents for free by visiting EDGAR on the SEC website at www.sec.gov. When available, copies of the prospectus supplement and accompanying prospectus related to the Offering may also be obtained from Jefferies LLC, at Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, New York 10022, by telephone at 877-821-7388, or by email at prospectus_department@jefferies.com. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction. Any offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time prior to notice of its acceptance given after the effective date. About Ecovyst Ecovyst Inc. and subsidiaries is a leading integrated and innovative global provider of specialty catalysts and services. We support customers globally through our strategically located network of manufacturing facilities. We believe that our products, which are predominantly inorganic, and services contribute to improving the sustainability of the environment. We have two uniquely positioned specialty businesses: Ecoservices provides sulfuric acid recycling to the North American refining industry for the production of alkylate and provides on-purpose virgin sulfuric acid for water treatment, mining, and industrial applications; and Catalyst Technologies provides finished silica catalysts and catalyst supports necessary to produce high strength and high stiffness plastics and, through its Zeolyst joint venture, supplies zeolites used for catalysts that help produce renewable fuels, remove nitrogen oxides from diesel engine emissions as well as sulfur from fuels during the refining process. Note on Forward-Looking Statements This press release includes statements that express our opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and therefore are, or may be deemed to be, “forward-looking statements.” These forward-looking statements can generally be identified by the use of forward-looking terminology, including the terms “believes,” “expects,” “may,” “will,” “should,” “seeks,” “projects,” “approximately,” “intends,” “plans,” “estimates” or “anticipates,” or, in each case, their negatives or other variations or comparable terminology. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future, including risks and uncertainties relating to the consummation of the proposed Offering by the Selling Stockholders, the repurchase of common stock, and the risks identified, or incorporated by reference, in the prospectus supplement or accompanying prospectus.
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Ecovyst (ECVT) Misses Q4 Earnings and Revenue Estimates
Ecovyst (ECVT) delivered earnings and revenue surprises of -3.85% and 3.76%, respectively, for the quarter ended December 2022. Do the numbers hold clues to what lies ahead for the stock?
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Ecovyst Reports Fourth Quarter 2022 Results
MALVERN, Pa.--(BUSINESS WIRE)--Ecovyst Inc. (NYSE:ECVT) (“Ecovyst” or the “Company”), a leading integrated and innovative global provider of specialty catalysts and services, today reported results for the fourth quarter and full year ended December 31, 2022. Full Year 2022 Results & Highlights Sales of $820.2 million, up 34.2% year-over-year Net income of $69.8 million, up $68.0 million, year-over-year percentage change not meaningful, with a net income margin of 8.5%, with diluted earnings per share of $0.52; Adjusted net income of $113.2 million, with Adjusted diluted income per share of $0.84 Adjusted EBITDA of $276.8 million, up 21.6% year-over-year, exceeding upwardly revised company guidance Full year net cash from operations of $186.6 million, Adjusted Free Cash Flow of $145.8 million, with net debt to net income ratio of 11.1x, and a net debt leverage ratio of 2.8x, compared to 3.3x at year-end 2021 Full year share repurchases of approximately 16.5 million or $136.7 million Achieved a Gold sustainability rating from EcoVadis, placing Ecovyst in the 97th percentile of companies rated in our peer group Fourth Quarter 2022 Results & Highlights Sales of $182.8 million, up 7.4% compared to the fourth quarter of 2021 Net income of $21.5 million, up 176% period-over-period, with a net income margin of 11.8%, with diluted earnings per share of $0.17; Adjusted net income of $31.8 million with Adjusted diluted income per share of $0.25 Adjusted EBITDA of $69.2 million, up 9.4% period-over-period with an Adjusted EBITDA margin of 31.1% In connection with a secondary offering of our common stock, returned capital to shareholders by repurchasing 8,000,000 shares at an average price of $7.88, for a total cost of $63.0 million, reducing a private equity sponsor’s ownership below 10% Ecovyst results reflect continuing operations for the Ecoservices and Catalyst Technologies businesses, renamed from Refining Services and Catalysts, respectively. Financial results are on a continuing operations basis, which excludes the Performance Materials and Performance Chemicals businesses due to the divestitures from all quarterly and year-to-date results presented, unless otherwise indicated. Financial results and outlook include non-GAAP financial measures. These non-GAAP measures are more fully described and are reconciled from the respective measures determined under GAAP in “Presentation of Non-GAAP Financial Measures” and the attached appendix. “The fourth quarter of 2022 was another quarter of solid financial performance for Ecovyst. Demand trends in the industries we serve remained positive, providing for a strong finish to the year. As a result, full-year 2022 Adjusted EBITDA for Ecovyst was up 22% compared to 2021, and above the high end of our guidance range,” said Kurt J. Bitting, Ecovyst’s Chief Executive Officer. “In addition to delivering on our financial goals, we had other notable achievements in 2022. Exceptional cash generation supported the significant reduction in our net debt leverage ratio to 2.8x and enabled increased shareholder value through $136.7 million of share repurchases. We were also recognized with EcoVadis’ Gold Sustainability rating for our ongoing efforts to promote more sustainable business practices and a more sustainable future,” said Bitting. “We enter 2023 with positive business momentum, and we currently expect demand fundamentals to remain constructive. With our strong customer relationships, and as a key provider of products and services designed to support the growing demand for low-carbon, greener technologies, we believe Ecovyst remains well-positioned for growth in 2023.” Fourth Quarter and Full Year 2022 Results For the year, sales of $820.2 million increased 34.2% year-over-year as a result of higher average selling prices (inclusive of a 13.9% sales increase, or $85 million associated with the pass-through of higher sulfur cost) and higher volume for regeneration services and niche custom catalysts. Net income was $69.8 million, an increase of $68.0 million, year-over-year percentage change not meaningful, with diluted earnings per share of $0.52. The increase in net income was driven by higher operating income and the absence of debt extinguishment costs in 2022, partially offset by higher provision for income taxes. Adjusted net income was $113.2 million with Adjusted diluted earnings per share of $0.84. Adjusted EBITDA was $276.8 million, an increase of $49.2 million or 22% over 2021, driven by higher pricing and higher sales volume that more than offset increases in variable costs. Sales for the quarter ended December 31, 2022 were $182.8 million, up 7.4% over the same period in 2021, primarily driven by higher average selling prices in Ecoservices. Net income was $21.5 million, an increase of $13.7 million or 176% over the same period in 2021, with diluted earnings per share of $0.17. The increase in net income over the prior period was driven by higher operating income, additional equity in net income from affiliates and lower provision for income taxes. Adjusted net income was $31.8 million with Adjusted diluted earnings per share of $0.25. Adjusted EBITDA was $69.2 million, an increase of $6.0 million or 9.4% over the same period in 2021, driven by higher pricing and higher sales volume that more than offset increases in variable costs. Review of Segment Results and Business Trends The post-pandemic macroeconomic recovery drove improved demand across most product categories, end-uses and customers throughout 2022, resulting in positive demand fundamentals for the year. Inflationary pressures in 2022, including higher costs for energy, logistics and other raw materials, continued through the fourth quarter. While contractual pass-through mechanisms and targeted price increases have served to mitigate the adverse impacts of higher variable costs on our businesses, supply chain constraints, including limited availability and higher costs for transportation and logistics, primarily in our Catalyst Technologies business, had an adverse impact on margins and profitability. In response, we have continued our efforts to minimize the associated impacts on our businesses through enhanced coordination and planning with customers and suppliers using our strategic network. Late in the fourth quarter of 2022, our Ecoservices business was adversely affected by Winter Storm Elliott. The storm disrupted operations at a number of our sites, impacting production and resulting in unplanned maintenance. While the storm had a modest impact on fourth quarter 2022 financial results, we expect the majority of the maintenance and repair costs incurred will be realized in the first quarter of 2023. In addition, we expect that the fourth quarter 2022 production outages will translate into lower availability and sales of virgin sulfuric acid in the first quarter of 2023. Ecoservices Our regeneration services support the production of alkylate, a high value gasoline component critical for meeting stringent gasoline standards and for producing premium grade gasoline. Tightening of gasoline standards and increased demand for higher-octane premium grade gasoline to power high compression, more fuel efficient engines has resulted in higher utilization for our customers’ alkylation units. High U.S. refinery utilization continued through the fourth quarter of 2022 supporting our customers’ production of alkylate and translating into robust demand for our regeneration services. Sulfuric acid is a widely used chemicals and it plays a key role in producing a wide array of materials, particularly those supporting green infrastructure. Our sales of virgin sulfuric acid in 2022 continued to benefit from healthy demand in the mining segment for metals and minerals that provide conductivity in low carbon technologies, as well as from strong demand in numerous industrial segments, including construction, auto, and packaging materials. Our catalyst activation services provide for ex-situ sulfiding and pre-activation for hydro-processing catalysts, with demand growing in both traditional and renewable fuel production. We believe sustainability trends will continue to favor our treatment services business as customers seek the sustainability-focused waste solutions offered by Ecoservices. Fourth quarter 2022 sales for Ecoservices of $159.8 million were up 12.5% compared to the year-ago quarter. The increase in sales reflects higher contract pricing on the pass-through of higher labor index, energy and freight costs and, higher volume for regeneration services, partially offset by lower virgin sulfuric acid volume on planned customer turnarounds and the impact from Winter Storm Elliott. Adjusted EBITDA of $54.4 million increased 4.0% year-over-year, with higher average selling prices and higher regeneration volume more than offsetting increases in variable costs, including costs for energy and freight and higher turnaround costs. For the year, sales of $702.5 million increased 40.4% over 2021. Sales increased on higher contract pricing, including the pass-through of higher sulfur costs of approximately $85 million, and higher volume for regeneration services. Adjusted EBITDA of $227.8 million increased 28.2% year over year, largely due to strong regeneration services demand and favorable pricing that more than offset higher raw material, energy, and freight costs. Catalyst Technologies Our silica catalysts business supplies critical catalyst components for the production of high-density polyethylene, a high-strength and high-stiffness plastic used in bottles, containers, and molded applications and linear low-density polyethylene used predominately for films. Growth in demand for polyethylene films and packaging has continued to drive higher sales of polyethylene catalysts. We also supply specialty catalysts to customers for use in refining both traditional and renewable fuels, petrochemicals, and emission control systems for both on-road and non-road diesel engines. Demand for traditional fuels remained strong and demand for renewable fuels has increased. We also supply niche custom catalysts in the refining and petrochemical industries. We continue to expect growth in demand for catalysts used in each of these applications. During the fourth quarter of 2022, Silica Catalysts sales were $23.0 million, down $5.2 million compared to the year-ago quarter, reflecting lower polyethylene catalyst sales from less favorable sales mix and an unfavorable impact from foreign exchange. Zeolyst JV sales of $39.9 million increased 9.9% over the prior-year quarter, reflecting higher sales of catalysts into renewable fuel and hydrocracking applications, partially offset by lower sales into certain niche custom catalyst applications. Adjusted EBITDA, which includes the Zeolyst Joint Venture, was $20.3 million down $3.1 million compared to the year-ago quarter, with the decrease reflecting lower sales volumes and less-favorable mix, coupled with higher variable costs, primarily associated with inflationary pressures. For the year, Silica Catalyst sales of $117.7 million increased 6.3% over 2021, benefiting from higher sales of niche custom catalysts. Zeolyst JV sales of $132.6 million increased slightly compared to the prior year. Strong demand for hydrocracking catalysts and niche custom catalysts were partially offset by lower sales into renewable fuel and emission control applications. Adjusted EBITDA of $78.0 million was 11.4% lower than the prior year driven by less favorable sales mix and higher production costs that were not passed through in price to our customers. The higher production costs included increased energy, raw material and other inflationary costs, along with certain one-time freight costs incurred due to supply chain challenges. Cash Flows and Balance Sheet Cash flows from operating activities was $186.6 million for the twelve months ended December 31, 2022, compared to $129.9 million for the twelve months ended December 31, 2021. At December 31, 2022, the Company had cash and cash equivalents of $110.9 million, total gross debt of $886.5 million and availability under the ABL facility of $59.7 million, after giving effect to $4.0 million of outstanding letters of credit and no revolving credit facility borrowings, for total available liquidity of $170.6 million. The net debt to net income ratio was 11.1x as of December 31, 2022 and the net debt leverage ratio was 2.8x as of December 31, 2022. 2023 Financial Outlook Full year 2023 guidance is as follows: Sales of $760 million to $790 million1 Sales of $145 million to $155 million for proportionate 50% share of Zeolyst Joint Venture, which is excluded from GAAP Sales Adjusted EBITDA2 of $285 million to $300 million, up 6% from 2022 at the mid-point of the range, and inclusive of impacts from Winter Storm Elliott Adjusted Free Cash Flow2 of $115 million to $130 million Capital expenditures of $60 million to $70 million Interest expense of $45 million to $50 million Depreciation & Amortization Ecovyst - $80 million to $90 million Zeolyst J.V. - $14 million to $16 million Ecovyst - $80 million to $90 million Zeolyst J.V. - $14 million to $16 million 1Sales outlook for 2023 assumes lower average sulfur prices, compared to 2022, and lower projected pass-through of sulfur costs of approximately $95 million. 2In reliance upon the unreasonable efforts exemption provided under Item 10(e)(1)(i)(B) of Regulation S-K, the Company is not able to provide a reconciliation of its non-GAAP financial guidance to the corresponding GAAP measures without unreasonable effort because of the inherent difficulty in forecasting and quantifying certain amounts necessary for such a reconciliation such as certain non-cash, nonrecurring or other items that are included in net income and EBITDA as well as the related tax impacts of these items and asset dispositions / acquisitions and changes in foreign currency exchange rates that are included in cash flow, due to the uncertainty and variability of the nature and amount of these future charges and costs. Because this information is uncertain, the Company is unable to address the probable significance of the unavailable information, which could be material to future results. Stock Repurchase Authorization In April 2022, the Company’s Board of Directors approved a stock repurchase program authorizing the repurchase of up to $450.0 million of the Company’s outstanding common stock over the next four years. Repurchases under the program are expected to be funded using cash on hand and cash generated from operations. Ecovyst primarily expects to conduct the repurchase program through negotiated transactions with Ecovyst’s equity sponsors, as well as through open market repurchases or other means, including through Rule 10b-18 trading plans or through the use of other techniques such as accelerated share repurchases. During the second and third quarters of 2022, the Company repurchased 1,970,763 shares of its common stock on the open market at an average price of $9.83 per share for a total cost of $19.4 million. In connection with a secondary offering of the Company’s common stock in August 2022, the Company repurchased 6,500,000 shares of its common stock sold in the offering from the underwriters at a price of $8.36 per share, for a total of $54.3 million. In connection with a secondary offering in November 2022, the Company repurchased 8,000,000 shares of its common stock sold in the offering from the underwriters at a price of $7.88 per share, for a total of $63.0 million. For possible future repurchases, the actual timing, number, and nature of shares repurchased will depend on a variety of factors, including stock price, trading volume, and general business and market conditions. The repurchase program does not obligate the Company to acquire any number of shares in any specific period, or at all, and the repurchase program may be amended, suspended or discontinued at any time at the Company’s discretion. As of December 31, 2022, $313.3 million was available for additional share repurchases under the program. Conference Call and Webcast Details On Tuesday, February 28, 2023, Ecovyst management will review the fourth quarter results during a conference call and audio-only webcast scheduled for 11:00 a.m. Eastern Time. Conference Call: Investors may listen to the conference call live via telephone by dialing 1 (800) 579-2543 (domestic) or 1 (203) 518-9708 (international) and using the participant code ECVTQ422. Webcast: An audio-only live webcast of the conference call and presentation materials can be accessed at https://investor.ecovyst.com. A replay of the conference call/webcast will be made available at https://investor.ecovyst.com/events-presentations. About Ecovyst Inc. Ecovyst Inc. and subsidiaries is a leading integrated and innovative global provider of specialty catalysts and services. We support customers globally through our strategically located network of manufacturing facilities. We believe that our products, which are predominantly inorganic, and services contribute to improving the sustainability of the environment. We have two uniquely positioned specialty businesses: Ecoservices provides sulfuric acid recycling to the North American refining industry for the production of alkylate and provides on-purpose virgin sulfuric acid for water treatment, mining, and industrial applications; and Catalyst Technologies provides finished silica catalysts and catalyst supports necessary to produce high strength and high stiffness plastics and, through its Zeolyst joint venture, supplies zeolites used for catalysts that help produce renewable fuels, remove nitrogen oxides from diesel engine emissions as well as sulfur from fuels during the refining process. For more information, see our website at https://www.ecovyst.com. Presentation of Non-GAAP Financial Measures In addition to the results provided in accordance with U.S. generally accepted accounting principles (“GAAP”) throughout this press release, the Company has provided non-GAAP financial measures — Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income, Adjusted free cash flow, Adjusted diluted income per share, and Net Debt Leverage ratio (collectively, “Non-GAAP Financial Measures”) — which present results on a basis adjusted for certain items. The Company uses these Non-GAAP Financial Measures for business planning purposes and in measuring its performance relative to that of its competitors. The Company believes that these Non-GAAP Financial Measures are useful financial metrics to assess its operating performance from period-to-period by excluding certain items that the Company believes are not representative of its core business. These Non-GAAP Financial Measures are not intended to replace, and should not be considered superior to, the presentation of the Company’s financial results in accordance with GAAP. The use of the Non-GAAP Financial Measures terms may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures. These Non-GAAP Financial Measures are reconciled from the respective measures under GAAP in the appendix below. Zeolyst Joint Venture The Company’s zeolite catalysts product group operates through its Zeolyst Joint Venture, which is accounted for as an equity method investment in accordance with GAAP. The presentation of the Zeolyst Joint Venture’s sales represents 50% of the sales of the Zeolyst Joint Venture. The Company does not record sales by the Zeolyst Joint Venture as revenue and such sales are not consolidated within the Company’s results of operations. However, the Company’s Adjusted EBITDA reflects the share of earnings of the Zeolyst Joint Venture that have been recorded as equity in net income from affiliated companies in the Company’s consolidated statements of income for such periods and includes Zeolyst Joint Venture adjustments on a proportionate basis based on the Company’s 50% ownership interest. Accordingly, the Company’s Adjusted EBITDA margins are calculated including 50% of the sales of the Zeolyst Joint Venture for the relevant periods in the denominator. Note on Forward-Looking Statements Some of the information contained in this press release constitutes “forward-looking statements.” Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “projects” and similar references to future periods. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Examples of forward-looking statements include, but are not limited to, statements regarding our future results of operations, financial condition, liquidity, prospects, growth, strategies, capital allocation program (including the stock repurchase program), product and service offerings, expected demand trends and our 2023 financial outlook. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you, therefore, against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, regional, national or global political, economic, business, competitive, market and regulatory conditions, including tariffs and trade disputes, currency exchange rates, the effects of inflation, and other factors, including those described in the sections titled “Risk Factors” and “Management’s Discussion & Analysis of Financial Condition and Results of Operations” in our filings with the SEC, which are available on the SEC’s website at www.sec.gov. These forward-looking statements speak only as of the date of this release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by applicable law. ECOVYST INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (in millions, except share and per share amounts) Three months ended December 31, % Years ended December 31, % 2022 2021 Change 2022 2021 Change Sales $ 182.8 $ 170.2 7.4 % $ 820.2 $ 611.2 34.2 % Cost of goods sold 133.3 115.7 15.2 % 595.5 434.5 37.1 % Gross profit 49.5 54.5 (9.2 )% 224.7 176.7 27.2 % Selling, general and administrative expenses 17.5 29.0 (39.7 )% 85.3 97.8 (12.8 )% Other operating expense, net 9.9 7.5 32.0 % 35.0 24.3 44.0 % Operating income 22.1 18.0 22.8 % 104.4 54.6 91.2 % Equity in net (income) from affiliated companies (10.3 ) (7.0 ) 47.1 % (27.7 ) (27.7 ) — % Interest expense, net 10.3 8.8 17.0 % 37.2 37.0 0.5 % Debt extinguishment costs — — — % — 26.9 (100.0 )% Other (income) expense, net (2.3 ) 1.4 (264.3 )% 0.2 4.5 (95.6 )% Income before income taxes and noncontrolling interest 24.4 14.8 64.9 % 94.7 13.9 581.3 % Provision for income taxes 2.9 7.0 (58.6 )% 24.9 12.1 105.8 % Effective tax rate 11.9 % 47.3 % (74.9 )% 26.3 % 87.1 % Net income from continuing operations 21.5 7.8 175.6 % 69.8 1.8 NM Net income (loss) from discontinued operations, net of tax 3.9 17.7 (78.0 )% 3.9 (141.4 ) (102.8 )% Net income (loss) 25.4 25.5 — % 73.7 (139.6 ) (152.8 )% Less: Net income attributable to the noncontrolling interest - discontinued operations — — — % — 0.3 (100.0 )% Net income (loss) attributable to Ecovyst Inc. $ 25.4 $ 25.5 (0.4 )% $ 73.7 $ (139.9 ) (152.7 )% Income from continuing operations attributable to Ecovyst Inc. 21.5 7.8 69.8 1.8 Income (loss) from discontinued operations attributable to Ecovyst Inc. 3.9 17.7 3.9 (141.7 ) Net income (loss) attributable to Ecovyst Inc. 25.4 25.5 73.7 (139.9 ) Earnings per share: Basic income per share - continuing operations $ 0.17 $ 0.06 $ 0.52 $ 0.01 Diluted income per share - continuing operations $ 0.17 $ 0.06 $ 0.52 $ 0.01 Weighted average shares outstanding: Basic 125,962,111 136,256,601 133,601,322 136,167,384 Diluted 127,538,343 137,528,028 135,088,172 137,708,931 ECOVYST INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in millions, except share and per share amounts) December 31, 2022 December 31, 2021 ASSETS Cash and cash equivalents $ 110.9 $ 140.9 Accounts receivables, net 74.8 80.8 Inventories, net 44.4 53.8 Derivative assets 18.5 — Prepaid and other current assets 19.1 16.2 Total current assets 267.7 291.7 Investments in affiliated companies 436.0 446.1 Property, plant and equipment, net 584.9 596.2 Goodwill 403.2 406.1 Other intangible assets, net 129.9 145.6 Right-of-use lease assets 28.3 30.1 Other long-term assets 34.6 15.4 Total assets $ 1,884.6 $ 1,931.2 LIABILITIES Current maturities of long-term debt $ 9.0 $ 9.0 Accounts payable 40.0 51.9 Operating lease liabilities—current 8.2 8.3 Accrued liabilities 72.2 75.9 Total current liabilities 129.4 145.1 Long-term debt, excluding current portion 865.9 872.8 Deferred income taxes 136.2 126.7 Operating lease liabilities—noncurrent 20.0 21.7 Other long-term liabilities 25.8 24.2 Total liabilities 1,177.3 1,190.5 Commitments and contingencies 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 1.4 1.4 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 1,091.5 1,073.4 Accumulated deficit (242.0 ) (315.7 ) Treasury stock, at cost; shares 17,385,034 and 882,213 on December 31, 2022 and 2021, respectively (149.6 ) (12.6 ) Accumulated other comprehensive loss 6.0 (5.8 ) Total equity 707.3 740.7 Total liabilities and equity $ 1,884.6 $ 1,931.2 ECOVYST INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS Years ended December 31, 2022 2021 Cash flows from operating activities: (in millions) Net income (loss) $ 73.7 $ (139.6 ) Net (income) loss from discontinued operations (3.9 ) 141.4 Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation 65.1 66.0 Amortization 14.0 13.8 Amortization of deferred financing costs and original issue discount 2.0 1.9 Debt extinguishment costs — 21.2 Foreign currency exchange loss 1.0 4.7 Pension and postretirement healthcare benefit (1.0 ) (0.3 ) Deferred income tax provision (benefit) 1.7 4.5 Net loss on asset disposals 3.6 5.7 Stock compensation 20.6 31.8 Equity in net income from affiliated companies (27.7 ) (27.7 ) Dividends received from affiliated companies 35.0 35.0 Other, net (1.6 ) (3.0 ) Working capital changes that provided (used) cash, excluding the effect of acquisitions and dispositions: Receivables 5.5 (33.5 ) Inventories 9.9 0.6 Prepaids and other current assets — (7.8 ) Accounts payable (10.1 ) 10.0 Accrued liabilities (7.4 ) 12.6 Net cash provided by operating activities, continuing operations 180.3 137.3 Net cash provided by (used in) operating activities, discontinued operations 6.3 (7.4 ) Net cash provided by operating activities 186.6 129.9 Cash flows from investing activities: Purchases of property, plant and equipment (58.9 ) (60.0 ) Proceeds from business divestiture, net of cash and indebtedness — 978.4 Payments for business divestiture (3.7 ) — Business combinations, net of cash acquired (0.5 ) (42.6 ) Other, net 0.1 (0.1 ) Net cash (used in) provided by investing activities, continuing operations (63.0 ) 875.7 Net cash used in investing activities, discontinued operations — (40.0 ) Net cash (used in) provided by investing activities (63.0 ) 835.7 Cash flows from financing activities: Issuance of long-term debt, net of original issue discount and financing fees — 897.8 Debt issuance costs — (1.3 ) Debt prepayment fees — (8.5 ) Repayments of long-term debt (9.0 ) (1,430.9 ) Proceeds from financing obligation — 16.0 Dividends paid to stockholders — (435.6 ) Repurchases of common shares (136.7 ) — Tax withholdings on equity award vesting (0.3 ) (1.5 ) Proceeds from stock options exercised 0.6 0.7 Repayments of finance lease obligations (2.7 ) (1.4 ) Other — 1.5 Net cash used in financing activities, continuing operations (148.1 ) (963.1 ) Net cash used in financing activities, discontinued operations — (1.1 ) Net cash used in financing activities (148.1 ) (964.2 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash (5.5 ) 2.3 Net change in cash, cash equivalents and restricted cash (30.0 ) 3.7 Cash, cash equivalents and restricted cash at beginning of period 140.9 137.2 Cash, cash equivalents and restricted cash at end of period $ 110.9 $ 140.9 Appendix Table A-1: Reconciliation of Net Income to Adjusted EBITDA Three months ended December 31, Years ended December 31, 2022 2021 2022 2021 (in millions) Reconciliation of net income to Adjusted EBITDA Net income from continuing operations $ 21.5 $ 7.8 $ 69.8 $ 1.8 Provision for income taxes 2.9 7.0 24.9 12.1 Interest expense, net 10.3 8.8 37.2 37.0 Depreciation and amortization 20.4 19.6 79.2 79.7 EBITDA 55.1 43.2 211.1 130.6 Joint venture depreciation, amortization and interest(a) 4.0 4.2 16.0 15.6 Amortization of investment in affiliate step-up(b) 1.6 1.6 6.4 6.5 Debt extinguishment costs — — — 26.9 Net loss on asset disposals(c) 2.4 1.2 3.6 5.7 Foreign currency exchange (gain) loss(d) (0.8 ) (0.1 ) 1.4 4.7 LIFO (benefit) expense(e) (0.2 ) 0.1 (0.2 ) (1.9 ) Transaction and other related costs(f) 0.1 0.4 7.0 2.0 Equity-based compensation 3.2 9.0 20.6 31.8 Restructuring, integration and business optimization expenses(g) 5.2 0.6 11.6 3.9 Other(h) (1.4 ) 3.0 (0.7 ) 1.8 Adjusted EBITDA $ 69.2 $ 63.2 $ 276.8 $ 227.6 Descriptions to Ecovyst Non-GAAP Reconciliations (a) We use Adjusted EBITDA as a performance measure to evaluate our financial results. Because our Catalyst Technologies segment includes our 50% interest in the Zeolyst Joint Venture, we include an adjustment for our 50% proportionate share of depreciation, amortization and interest expense of the Zeolyst Joint Venture. (b) Represents the amortization of the fair value adjustments associated with the equity affiliate investment in the Zeolyst Joint Venture as a result of the combination of the businesses of Ecovyst Inc. and Eco Services Operations LLC in May 2016. We determined the fair value of the equity affiliate investment and the fair value step-up was then attributed to the underlying assets of the Zeolyst Joint Venture. Amortization is primarily related to the fair value adjustments associated with fixed assets and intangible assets, including customer relationships and technical know-how. (c) When asset disposals occur, we remove the impact of net gain/loss of the disposed asset because such impact primarily reflects the non-cash write-off of long-lived assets no longer in use. (d) Reflects the exclusion of the foreign currency transaction gains and losses in the statements of income related to the non-permanent intercompany debt denominated in local currency translated to U.S. dollars. (e) Represents non-cash adjustments to the Company’s LIFO reserves for certain inventories in the U.S. that are valued using the LIFO method, which we believe provides a means of comparison to other companies that may not use the same basis of accounting for inventories. (f) Relates to certain transaction costs, including debt financing, due diligence and other costs related to transactions that are completed, pending or abandoned, that we believe are not representative of our ongoing business operations. (g) Includes the impact of restructuring, integration and business optimization expenses which are incremental costs that are not representative of our ongoing business operations. (h) Other costs consist of adjustments for defined benefit pension plan (benefit) costs and certain expenses that are not core to our ongoing business operations, including environmental remediation-related costs, capital and franchise taxes. All of our defined benefit pension plan obligations are under defined benefit pension plans that are frozen. Included in this line-item are rounding discrepancies that may arise from rounding from dollars (in thousands) to dollars (in millions). Appendix Table A-2: Reconciliation of Net Income to Adjusted Net Income(1) Three months ended December 31, 2022 2021 Pre-tax Tax expense (benefit) After-tax Pre-tax Tax expense (benefit) After-tax (in millions) Net income from continuing operations $ 24.4 $ 2.9 $ 21.5 $ 14.8 $ 7.0 $ 7.8 Earnings per share: Basic income per share - continuing operations $ 0.17 $ 0.06 Diluted income per share - continuing operations $ 0.17 $ 0.06 Net income from continuing operations 24.4 2.9 21.5 14.8 7.0 7.8 Amortization of investment in affiliate step-up(b) 1.6 0.2 1.4 1.6 0.2 1.4 Debt extinguishment costs — — — — (0.9 ) 0.9 Net loss on asset disposals(c) 2.4 0.5 1.9 1.1 0.1 1.0 Foreign currency exchange gain(d) (0.8 ) (0.1 ) (0.7 ) — — — LIFO benefit(e) (0.2 ) (0.1 ) (0.1 ) — — — Transaction and other related costs(f) 0.1 (0.6 ) 0.7 0.4 (0.1 ) 0.5 Equity-based compensation 3.2 (0.7 ) 3.9 9.0 1.3 7.7 Restructuring, integration and business optimization expenses(g) 5.1 0.9 4.2 0.6 0.1 0.5 Other(h) (1.3 ) (0.3 ) (1.0 ) 3.2 0.9 2.3 Adjusted net income, includes Impact of Discrete Tax Items 34.5 2.7 31.8 30.7 8.6 22.1 Impact of Discrete Tax Items(2) — — — — (0.8 ) 0.8 Adjusted net income(1) $ 34.5 $ 2.7 $ 31.8 $ 30.7 $ 7.8 $ 22.9 Adjusted net income per share: Basic income per share $ 0.25 $ 0.17 Diluted income per share $ 0.25 $ 0.17 Weighted average shares outstanding: Basic 125,962,111 136,256,601 Diluted 127,538,343 137,528,028 See Appendix Table A-1 for Descriptions to Ecovyst Non-GAAP Reconciliations in the table above. The adjustments to net income attributable to Ecovyst Inc. are shown net of each applicable statutory tax rates. Years ended December 31, 2022 2021 Pre-tax Tax expense (benefit) After-tax Pre-tax Tax expense (benefit) After-tax (in millions) Net income from continuing operations $ 94.7 $ 24.9 $ 69.8 $ 13.9 $ 12.1 $ 1.8 Earnings per share: Basic income per share - continuing operations $ 0.52 $ 0.01 Diluted income per share - continuing operations $ 0.52 $ 0.01 Net income attributable to Ecovyst Inc. 94.7 24.9 69.8 13.9 12.1 1.8 Amortization of investment in affiliate step-up(b) 6.4 1.5 4.9 6.5 1.6 4.9 Debt extinguishment costs — — — 26.9 6.6 20.3 Net loss on asset disposals(c) 3.6 0.9 2.7 5.7 1.4 4.3 Foreign currency exchange loss(d) 1.4 0.4 1.0 4.7 1.0 3.7 LIFO benefit(e) (0.2 ) (0.1 ) (0.1 ) (1.9 ) (0.5 ) (1.4 ) Transaction and other related costs(f) 7.0 1.1 5.9 2.0 0.5 1.5 Equity-based compensation 20.6 (0.1 ) 20.7 31.8 7.7 24.1 Restructuring, integration and business optimization expenses(g) 11.6 2.8 8.8 3.9 0.7 3.2 Other(h) (0.7 ) (0.2 ) (0.5 ) 1.8 0.7 1.1 Adjusted net income, includes Impact of Discrete Tax Items 144.4 31.2 113.2 95.3 31.8 63.5 Impact of Discrete Tax Items(2) — — — — (6.1 ) 6.1 Adjusted net income(1) $ 144.4 $ 31.2 $ 113.2 $ 95.3 $ 25.7 $ 69.6 Adjusted net income per share: Basic income per share $ 0.85 $ 0.51 Diluted income per share $ 0.84 $ 0.51 Weighted average shares outstanding: Basic 133,601,322 136,167,384 Diluted 135,088,172 137,708,931 (1) We define adjusted net income as net income attributable to Ecovyst adjusted for non-operating income or expense and the impact of certain non-cash or other items that are included in net income that we do not consider indicative of our ongoing operating performance. Adjusted net income is presented as a key performance indicator as we believe it will enhance a prospective investor’s understanding of our results of operations and financial condition. Adjusted net income may not be comparable with net income or adjusted net income as defined by other companies. (2) Represents intraperiod allocation rules related to a change in the UK legislature, which increased the UK corporate rate as well as the German Uncertain Tax Position. Appendix Table A-3: Business Segment Sales and Adjusted EBITDA Three months ended December 31, Years ended December 31, 2022 2021 % Change 2022 2021 % Change Sales: Ecoservices $ 159.8 $ 142.0 12.5 % $ 702.5 $ 500.5 40.4 % Catalyst Technologies 23.0 28.2 (18.4 )% 117.7 110.7 6.3 % Total sales $ 182.8 $ 170.2 7.4 % $ 820.2 $ 611.2 34.2 % Zeolyst International sales $ 39.9 $ 36.3 9.9 % $ 132.6 $ 131.3 1.0 % Adjusted EBITDA: Ecoservices $ 54.4 $ 52.3 4.0 % $ 227.8 $ 177.7 28.2 % Catalyst Technologies 20.3 23.4 (13.2 )% 78.0 88.0 (11.4 )% Unallocated corporate expenses (5.5 ) (12.5 ) (55.7 )% (29.0 ) (38.1 ) (24.0 )% Total Adjusted EBITDA $ 69.2 $ 63.2 9.4 % $ 276.8 $ 227.6 21.6 % Adjusted EBITDA Margin: Ecoservices 34.0 % 36.8 % 32.4 % 35.5 % Catalyst Technologies(1) 32.3 % 36.3 % 31.2 % 36.4 % Total Adjusted EBITDA Margin(1) 31.1 % 30.6 % 29.0 % 30.7 % (1) Adjusted EBITDA margin calculation includes proportionate 50% share of sales from the Zeolyst Joint Venture. Appendix Table A-4: Adjusted Free Cash Flow Years ended December 31, 2022 2021 (in millions) Net cash provided by operating activities, continuing operations $ 180.3 $ 137.3 Net cash (used in) provided by operating activities, discontinued operations 6.3 (7.4 ) Net cash provided by operating activities 186.6 129.9 Less: Purchases of property, plant and equipment, continuing operations (58.9 ) (60.0 ) Purchases of property, plant and equipment, discontinued operations — (31.0 ) Purchases of property, plant and equipment(1) (58.9 ) (91.0 ) Free cash flow 127.7 38.9 Adjustments to free cash flow: Proceeds from sale of assets — 0.3 Net interest proceeds on currency swaps — 2.3 Cash paid for costs related to segment disposals 18.1 46.0 Cash paid for debt financing costs included in cash from operating activities — 5.7 Adjusted free cash flow(2) $ 145.8 $ 93.2 Net cash provided by investing activities(3) $ (63.0 ) $ 835.7 Net cash used in financing activities $ (148.1 ) $ (964.2 ) (1) Excludes the Company’s proportionate 50% share of capital expenditures from the Zeolyst joint venture. (2) We define adjusted free cash flow as net cash provided by operating activities less purchases of property, plant and equipment, adjusted for proceeds from sale of assets and net interest proceeds on swaps designated as net investment hedges and the cash paid for costs related to segment disposals. Adjusted free cash flow is a non-GAAP financial measure that we believe will enhance a prospective investor’s understanding of our ability to generate additional cash from operations, including the reduction in cash paid for interest related to our cross-currency interest rate swaps, and is an important financial measure for use in evaluating our financial performance. Our presentation of adjusted free cash flow is not intended to replace, and should not be considered superior to, the presentation of our net cash provided by operating activities determined in accordance with GAAP. Additionally, our definition of adjusted free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, we believe it is important to view adjusted free cash flow as a measure that provides supplemental information to our consolidated statements of cash flows. (3) Net cash used in investing activities includes purchases of property, plant and equipment, proceeds from sale of assets, and net interest proceeds on swaps designated as net investment hedges, which are also included in our computation of adjusted free cash flow. Appendix Table A-5: Net Debt Leverage Ratio December 31, 2022 December 31, 2021 In millions, except ratios Total Debt $ 886.5 $ 895.5 Less: Cash and cash equivalents 110.9 140.9 Net Debt $ 775.6 $ 754.6 Net Income 69.8 1.8 Adjusted EBITDA(1) 276.8 227.6 Net Debt to Net Income Ratio 11.1 x 419.2 x Net Debt Leverage Ratio 2.8 x 3.3 x ____________________ (1) Refer to the Reconciliation of Net Income to Adjusted EBITDA schedule for the reconciliation to the most comparable GAAP financial measure.
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Ecovyst to Host Fourth Quarter 2022 Earnings Conference Call and Webcast on Tuesday, February 28, 2023 at 11:00 a.m. ET
MALVERN, Pa.--(BUSINESS WIRE)--Ecovyst Inc. (NYSE: ECVT), a leading integrated and innovative global provider of specialty catalysts and services, announced today that it will conduct a conference call and audio-only webcast on Tuesday, February 28, 2023 at 11:00 a.m. Eastern Time to review its fourth quarter 2022 financial results. Investors may listen to the conference call live via telephone by dialing 1 (800) 579-2543 (domestic) or 1 (203) 518-9708 (international) and use the participant code ECVTQ422. An audio-only live webcast of the conference call and presentation materials can be accessed at https://investor.ecovyst.com. A replay of the conference call/webcast will be made available at https://investor.ecovyst.com/events-presentations. About Ecovyst Inc. Ecovyst Inc. and subsidiaries is a leading integrated and innovative global provider of specialty catalysts and services. We support customers globally through our strategically located network of manufacturing facilities. We believe that our products, which are predominantly inorganic, and services contribute to improving the sustainability of the environment. We have two uniquely positioned specialty businesses: Ecoservices provides sulfuric acid recycling to the North American refining industry for the production of alkylate and provides on-purpose virgin sulfuric acid for water treatment, mining, and industrial applications; and Catalyst Technologies provides finished silica catalysts and catalyst supports necessary to produce high strength and high stiffness plastics and, through its Zeolyst joint venture, supplies zeolites used for catalysts that remove nitric oxide from diesel engine emissions as well as sulfur from fuels during the refining process. For more information, see our website at https://www.ecovyst.com.
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Ecovyst Achieves EcoVadis Gold Level Sustainability Rating
MALVERN, Pa.--(BUSINESS WIRE)--Ecovyst Inc. (NYSE: ECVT) (“Ecovyst”), a global provider of specialty catalysts and services, announces that it has achieved a Gold sustainability rating from EcoVadis. This accreditation recognizes Ecovyst's ongoing commitment to a more sustainable future and its progress in integrating the principles of sustainability and corporate social responsibility into its business practices and management systems. Our Gold Medal rating score places us in the 97th percentile of companies EcoVadis rated in our peer group. “Through our dedication to continuous improvement, Ecovyst strives to advance and promote sustainable technologies and business practices for the benefit of all of our stakeholders, including our customers, suppliers, employees and our investors. Our commitment to recycling sulfuric acid, producing catalysts that enable the production of clean and renewable fuels and reduced vehicle emissions, as well as our active and responsible involvement with our surrounding communities, demonstrates Ecovyst’s long-term commitment to sustainability,” said Kurt J. Bitting, Ecovyst’s Chief Executive Officer. “We are proud that the sustainability efforts of all of our Ecovyst colleagues have been recognized with the achievement of the EcoVadis’ Gold rating.” Since its founding in 2007, EcoVadis has grown to become the world’s largest and most trusted provider of business sustainability ratings, creating a global network of more than 100,000+ rated companies. The EcoVadis sustainability assessment methodology evaluates how well a company has integrated the principles of Sustainability/Corporate Social Responsibility into its business and management systems. The methodology is built on international sustainability standards, including the Global Reporting Initiative, the United Nations Global Compact, and ISO 26000. The Sustainability Scorecard is focused on performance across 21 indicators in four themes: Environment, Labor and Human Rights, Ethics and Sustainable Procurement. About Ecovyst Inc. Ecovyst Inc. and subsidiaries is a leading integrated and innovative global provider of specialty catalysts and services. We support customers globally through our strategically located network of manufacturing facilities. We believe that our products, which are predominantly inorganic, and services contribute to improving the sustainability of the environment. We have two uniquely positioned specialty businesses: Ecoservices provides sulfuric acid recycling to the North American refining industry for the production of alkylate and provides on-purpose virgin sulfuric acid for water treatment, mining, and industrial applications; and Catalyst Technologies provides finished silica catalysts and catalyst supports necessary to produce high strength and high stiffness plastics and, through its Zeolyst joint venture, supplies zeolites used for catalysts that remove nitrogen oxides from diesel engine emissions as well as sulfur from fuels during the refining process. For more information, see our website at https://www.ecovyst.com.
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Ecovyst: Highly Profitable, Shareholder-Friendly Company, Stock Worth Owning
The company has restructured its operations and paid down a big portion of its debt pile. Net sales are showing signs of stabilization after a short period of growth.
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Ecovyst Inc. to Participate in the Bank of America 2022 Leveraged Finance Conference
MALVERN, Pa.--(BUSINESS WIRE)--Ecovyst Inc. (NYSE: ECVT) (“Ecovyst”) today announced that Gene Shiels, Director of Investor Relations for Ecovyst Inc., will present at the Bank of America 2022 Leveraged Finance Conference on Tuesday, November 29, 2022 10:10 a.m. Eastern Standard Time. The presentation will be broadcast simultaneously via webcast and will be available to members of the news media, investors and the general public. A link to the webcast can be found on Ecovyst’s website, www.ecovyst.com, under “Investors/Events & Presentations”, or accessed directly through https://bofa.veracast.com/webcasts/bofa/levfin2022/id4Ob5Z3.cfm. The webcast will be archived and available for replay for 90 days after the event. About Ecovyst Inc. Ecovyst Inc. and subsidiaries is a leading integrated and innovative global provider of specialty catalysts and services. We support customers globally through our strategically located network of manufacturing facilities. We believe that our products, which are predominantly inorganic, and services contribute to improving the sustainability of the environment. We have two uniquely positioned specialty businesses: Ecoservices provides sulfuric acid recycling to the North American refining industry for the production of alkylate and provides on-purpose virgin sulfuric acid for water treatment, mining, and industrial applications; and Catalyst Technologies provides finished silica catalysts and catalyst supports necessary to produce high strength and high stiffness plastics and, through its Zeolyst joint venture, supplies zeolites used for catalysts that remove nitrogen oxides from diesel engine emissions as well as sulfur from fuels during the refining process. For more information, see our website at https://www.ecovyst.com.
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Ecovyst Announces Upsize and Pricing of Secondary Offering of 17,500,000 Shares of Common Stock by Selling Stockholders and Repurchase of Common Stock
MALVERN, Pa.--(BUSINESS WIRE)--Ecovyst Inc. (NYSE: ECVT) (the “Company”) today announced the upsize and pricing of the previously announced underwritten public offering (the “Offering”) by funds affiliated with CCMP Capital Advisors, LP (the “Selling Stockholders”). The size of the Offering increased from the previously announced 16,000,000 shares to an aggregate of 17,500,000 shares of the Company’s common stock at a price to the public of $8.25 per share. The Offering is expected to close on November 17, 2022, subject to customary closing conditions. The Selling Stockholders have granted the underwriters a 30-day option to purchase up to 2,625,000 additional shares at the public offering price less underwriting discounts and commissions. The Selling Stockholders will receive all of the net proceeds from the Offering. No shares are being sold by the Company. Subject to the completion of the Offering, the Company intends to repurchase from the underwriters 8,000,000 shares of the common stock being sold in the Offering at a price per share equal to the price per share paid by the underwriters to the Selling Stockholders in the Offering. The Company intends to fund the share repurchase with cash on hand and cash from operations. The closing of the share repurchase is conditioned on, and expected to occur simultaneously with, the closing of the Offering. The Offering is expected to close on November 17, 2022, subject to customary closing conditions. Goldman Sachs & Co. LLC, Deutsche Bank Securities and Credit Suisse are serving as the joint lead book-running managers of the Offering. Citigroup, BMO Capital Markets, Morgan Stanley, Jefferies and KeyBanc Capital Markets are also serving as book-running managers of the Offering. C.L. King & Associates are serving as a co-manager of the Offering. An automatic shelf registration statement (including a prospectus) relating to the Offering was filed with the Securities and Exchange Commission (“SEC”) on April 26, 2021 and became effective upon filing. Before you invest, you should read the prospectus included in that registration statement and the documents incorporated by reference in that registration statement as well as the prospectus supplement related to the Offering. You may obtain these documents for free by visiting EDGAR on the SEC website at www.sec.gov. When available, copies of the prospectus supplement and accompanying prospectus related to the Offering may also be obtained from Goldman Sachs & Co. LLC, 200 West Street, New York, NY 10282 Attention: Prospectus Department, by telephone: (866) 471-2526 or by email at prospectus-ny@ny.email.gs.com; Deutsche Bank Securities Inc., Attention: Prospectus Department, 1 Columbus Circle, New York, NY 10019, by telephone at 1-800-503-4611 or by email at prospectus.cpdg@db.com; or Credit Suisse Securities (USA) LLC, Attn: Prospectus Department, 6933 Louis Stephens Drive, Morrisville, North Carolina 27560, United States or by telephone at (800) 221-1037 or by email at usa.prospectus@credit-suisse.com. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction. Any offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time prior to notice of its acceptance given after the effective date. About Ecovyst Ecovyst Inc. and subsidiaries is a leading integrated and innovative global provider of specialty catalysts and services. We support customers globally through our strategically located network of manufacturing facilities. We believe that our products, which are predominantly inorganic, and services contribute to improving the sustainability of the environment. We have two uniquely positioned specialty businesses: Ecoservices provides sulfuric acid recycling to the North American refining industry for the production of alkylate and provides on-purpose virgin sulfuric acid for water treatment, mining, and industrial applications; and Catalyst Technologies provides finished silica catalysts and catalyst supports necessary to produce high strength and high stiffness plastics and, through its Zeolyst joint venture, supplies zeolites used for catalysts that help produce renewable fuels, remove nitrogen oxides from diesel engine emissions as well as sulfur from fuels during the refining process. Note on Forward-Looking Statements This press release includes statements that express our opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and therefore are, or may be deemed to be, “forward-looking statements.” These forward-looking statements can generally be identified by the use of forward-looking terminology, including the terms “believes,” “expects,” “may,” “will,” “should,” “seeks,” “projects,” “approximately,” “intends,” “plans,” “estimates” or “anticipates,” or, in each case, their negatives or other variations or comparable terminology. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future, including risks and uncertainties relating to the consummation of the proposed Offering by the Selling Stockholders, the repurchase of common stock, and the risks identified, or incorporated by reference, in the prospectus supplement or accompanying prospectus.
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Ecovyst Announces Secondary Offering of 16,000,000 Shares of Common Stock by Selling Stockholders and Repurchase of Common Stock
MALVERN, Pa.--(BUSINESS WIRE)--Ecovyst Inc. (NYSE: ECVT) (the “Company”) today announced that funds affiliated with CCMP Capital Advisors, LP (the “Selling Stockholders”) intend to offer for sale 16,000,000 shares of its common stock pursuant to the Company’s shelf registration statement filed with the Securities and Exchange Commission (the “Offering”). In addition, the Selling Stockholders have granted the underwriters a 30-day option to purchase up to 2,400,000 additional shares at the public offering price less underwriting discounts and commissions. The Selling Stockholders will receive all of the net proceeds from the Offering. No shares are being sold by the Company. Subject to the completion of the Offering, the Company intends to repurchase from the underwriters 8,000,000 shares of the common stock being sold in the Offering at a price per share equal to the price per share paid by the underwriters to the Selling Stockholders in the Offering. The Company intends to fund the share repurchase with cash on hand and cash from operations. The closing of the share repurchase is conditioned on, and expected to occur simultaneously with, the closing of the Offering. The Offering is subject to market and other conditions, and there can be no assurance as to whether or when the Offering may be completed. Goldman Sachs & Co. LLC, Deutsche Bank Securities and Credit Suisse are serving as the joint lead book-running managers of the Offering. An automatic shelf registration statement (including a prospectus) relating to the Offering was filed with the Securities and Exchange Commission (“SEC”) on April 26, 2021 and became effective upon filing. Before you invest, you should read the prospectus included in that registration statement and the documents incorporated by reference in that registration statement as well as the prospectus supplement related to the Offering. You may obtain these documents for free by visiting EDGAR on the SEC website at www.sec.gov. When available, copies of the prospectus supplement and accompanying prospectus related to the Offering may also be obtained from Goldman Sachs & Co. LLC, 200 West Street, New York, NY 10282 Attention: Prospectus Department, by telephone: (866) 471-2526 or by email at prospectus-ny@ny.email.gs.com; Deutsche Bank Securities Inc., Attention Prospectus Department, 1 Columbus Circle, New York, NY 10019, by telephone at 1-800-503-4611 or by email at prospectus.cpdg@db.com; or Credit Suisse Securities (USA) LLC, Attn: Prospectus Department, 6933 Louis Stephens Drive, Morrisville, North Carolina 27560, United States or by telephone at (800) 221-1037 or by email at usa.prospectus@credit-suisse.com. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction. Any offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time prior to notice of its acceptance given after the effective date. About Ecovyst Ecovyst Inc. and subsidiaries is a leading integrated and innovative global provider of specialty catalysts and services. We support customers globally through our strategically located network of manufacturing facilities. We believe that our products, which are predominantly inorganic, and services contribute to improving the sustainability of the environment. We have two uniquely positioned specialty businesses: Ecoservices provides sulfuric acid recycling to the North American refining industry for the production of alkylate and provides on-purpose virgin sulfuric acid for water treatment, mining, and industrial applications; and Catalyst Technologies provides finished silica catalysts and catalyst supports necessary to produce high strength and high stiffness plastics and, through its Zeolyst joint venture, supplies zeolites used for catalysts that help produce renewable fuels, remove nitrogen oxides from diesel engine emissions as well as sulfur from fuels during the refining process. Note on Forward-Looking Statements This press release includes statements that express our opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and therefore are, or may be deemed to be, “forward-looking statements.” These forward-looking statements can generally be identified by the use of forward-looking terminology, including the terms “believes,” “expects,” “may,” “will,” “should,” “seeks,” “projects,” “approximately,” “intends,” “plans,” “estimates” or “anticipates,” or, in each case, their negatives or other variations or comparable terminology. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future, including risks and uncertainties relating to the consummation of the proposed Offering by the Selling Stockholders, the repurchase of common stock, and the risks identified, or incorporated by reference, in the prospectus supplement or accompanying prospectus.
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Ecovyst Inc. (ECVT) Q3 2022 Earnings Call Transcript
Ecovyst Inc. (NYSE:ECVT ) Q3 2022 Earnings Conference Call November 1, 2022 11:00 AM ET Company Participants Gene Shiels - Director of Investor Relations Kurt Bitting - Chief Executive Officer and Director Mike Feehan - Chief Financial Officer Conference Call Participants John McNulty - BMO Capital Markets David Begleiter - Deutsche Bank Aleksey Yefremov - KeyBanc Capital Markets Angel Castillo - Morgan Stanley Patrick Cunningham - Citi Laurence Alexander - Jefferies David Silver - CL King Operator Good morning. My name is Katie, and I will be your conference operator today.
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CORRECTING and REPLACING Ecovyst Reports Third Quarter 2022 Results and Affirms Adjusted EBITDA Guidance
MALVERN, Pa.--(BUSINESS WIRE)--The correction will provide an update to Appendix Table A-4: Adjusted Free Cash Flow. The table presented was inadvertently missing a row with the adjustment for “cash paid for debt financing costs included in cash from operating activities” of $5.7 million for the three and nine months ended September 30, 2021. The updated release reads: ECOVYST REPORTS THIRD QUARTER 2022 RESULTS AND AFFIRMS ADJUSTED EBITDA GUIDANCE Ecovyst Inc. (NYSE: ECVT) (“Ecovyst” or the “Company”) a leading integrated and innovative global provider of specialty catalysts and services, today reported results for the third quarter ended September 30, 2022 and affirmed its 2022 guidance, except for the sales guidance, which was reduced to reflect lower anticipated sulfur costs. Third Quarter 2022 Results & Highlights Sales of $233 million, up 39% compared to the third quarter of 2021 Net income of $21 million with diluted earnings per share of $0.16; Adjusted net income of $31 million with Adjusted diluted earnings per share of $0.23 Adjusted EBITDA of $75 million, up 9% year-over-year with Adjusted EBITDA margins of 29% Year-to-date net cash from operations of $109 million, Adjusted Free Cash Flow of $85 million, and reduced net leverage ratio to 2.8x, compared to 3.3x at year-end 2021 Repurchased 7,577,640 shares at an average price of $8.56, for total cost of $65 million. Ecovyst results reflect continuing operations for the Ecoservices and Catalyst Technologies businesses, renamed from Refining Services and Catalysts, respectively. Financial results are on a continuing operations basis, which excludes the Performance Materials and Performance Chemicals businesses due to the recent divestitures from all quarterly and year-to-date results presented, unless otherwise indicated. Financial results and outlook include non-GAAP financial measures. These non-GAAP measures are more fully described and are reconciled from the respective measures determined under GAAP in “Presentation of Non-GAAP Financial Measures” and the attached appendix. Third Quarter 2022 Results Sales for the quarter ended September 30, 2022 were $233 million, up 39% over the prior year period, with the increase reflecting higher average selling prices (inclusive of a 17% sales increase, or $28 million, associated with the pass-through of higher sulfur costs), higher volume of regeneration services in our Ecoservices business along with increases in sales of polyethylene catalysts and niche custom catalysts in our Catalyst Technologies business. Net income was $21 million, an increase of $17 million over the prior year period, with a diluted earnings per share of $0.16. Adjusted net income was $31 million with an Adjusted diluted earnings per share of $0.23. Adjusted EBITDA was $75 million, an increase of $6 million or 9% over the prior year period, driven by higher pricing and higher sales volume that more than offset increases in variable costs. “Ecovyst delivered strong results for the third quarter of 2022, powered by a continued growth in sales resulting from favorable demand fundamentals for Ecovyst’s products and services. In addition, continued strong pricing significantly mitigated inflationary pressures” said Kurt J. Bitting, Ecovyst’s Chief Executive Officer. “Ecovyst’s products and services support critical industries and infrastructure, and as a supplier of essential materials enabling the ongoing expansion of low-carbon technologies, we expect our business to remain resilient for the balance of year. With strong momentum as we enter the fourth quarter, we currently anticipate that our full-year 2022 Adjusted EBITDA will be at the high end of our prior guidance of $265 million-$275 million,” said Bitting. Review of Segment Results and Business Trends The post-pandemic macroeconomic recovery in 2021 that drove improved demand across most product categories, end-uses and customers has continued in 2022, resulting in positive demand fundamentals for the first nine months of the year. We anticipate relative stability in demand over the balance of 2022. Inflationary pressures, including higher costs for sulfur, energy, logistics and other raw materials, also continued through the third quarter. However, contractual pass-through mechanisms and targeted price increases have served to mitigate the adverse impacts of higher variable costs on our businesses. Supply chain constraints, including limited availability and higher costs for transportation and logistics, have remained a factor. In response, we have continued efforts to minimize the associated impact on our businesses through enhanced coordination and planning with customers and suppliers using our strategic network. Ecoservices Our regeneration services support the production of alkylate, a high value gasoline component critical for meeting stringent gasoline standards and for producing premium grade gasoline. Tightening of gasoline standards and growing demand for premium grade gasoline to power high compression, more efficient engines has resulted in higher utilization for our customers’ alkylation units. High refinery utilization and strong gasoline demand through the third quarter of 2022 continued to support production of alkylate, translating into robust demand for our regeneration services. Sulfuric acid is one of the most widely used chemicals and it plays a key role in producing a wide array of materials, particularly those supporting green infrastructure. Our sales of virgin sulfuric acid continued to benefit from healthy demand in the mining segment for metals and minerals that provide conductivity in low carbon technologies, as well as strong demand from numerous industrial segments, including construction, auto, and packaging materials. We believe sustainability trends will continue to favor our treatment services business as customers seek the sustainability-focused waste solutions offered by Ecoservices. Sales of $196 million were up 42% compared to the year-ago quarter. Sales increased on higher contract pricing, including pass-through of higher sulfur cost of approximately $28 million, as well as higher volume of regeneration services. Adjusted EBITDA of $64 million increased 24% year over year, largely attributable to strong regeneration services demand and favorable pricing that more than offset higher raw material, energy, and freight costs. Catalyst Technologies Growth in demand for polyethylene films and packaging has continued to drive higher sales of polyethylene catalysts. In addition, demand for traditional fuels remains strong and demand for renewable fuels increased. We continue to expect growth in demand for catalysts used in these applications. Higher demand for refined products has resulted in high refinery industry utilization and high refining margins, as well as the deferral of planned turnarounds as refiners seek to maximize profitability. As a result, this delay in planned turnarounds has impacted the timing of certain catalysts sales. During the third quarter of 2022, Silica catalysts sales were $37 million, up 23% compared to the year-ago quarter, reflecting higher polyethylene and niche custom catalysts sales. Zeolyst Joint Venture sales of $28 million were down 15% compared to the year-ago quarter on the timing of hydrocracking catalysts sales driven by delayed refinery turnarounds. Adjusted EBITDA, which includes the Zeolyst Joint Venture, was $19 million, down 24% compared to the year-ago quarter, driven by less favorable product mix and higher production costs within the quarter. Cash Flows and Balance Sheet Cash flows from operating activities was $109 million for the nine months ended September 30, 2022, compared to $85 million for the nine months ended September 30, 2021. At September 30, 2022, the Company had total gross debt of $889 million and available liquidity of $199 million, including cash and cash equivalents of $121 million. The net debt to Adjusted EBITDA ratio was 2.8x as of September 30, 2022. 2022 Financial Outlook Full Year 2022 Guidance is as follows: Sales of $810 million to $830 million1 (decreased from $830 million to $850 million to reflect lower anticipated sulfur costs) Sales of $135 million to $145 million for proportionate 50% share of Zeolyst Joint Venture, which is excluded from GAAP Sales Adjusted EBITDA of $265 million to $275 million, up 19% from 2021 at the mid-point of the range Adjusted Free Cash Flow of $115 million to $125 million Capital Expenditures of $55 million to $65 million 1Sales outlook for 2022 includes approximately $90 million of higher sales vs. 2021 due to the pass through of increased sulfur costs, which is expected to negatively impact Adjusted EBITDA margin by more than (400) basis points, but would have no material impact to Adjusted EBITDA. Stock Repurchase Authorization In April 2022, the Company’s Board of Directors approved a new stock repurchase program authorizing the repurchase of up to $450 million of the Company’s outstanding common stock over the next four years. Repurchases under the program are expected to be funded using cash on hand and cash generated from operations. Ecovyst primarily expects to conduct the repurchase program through negotiated transactions with Ecovyst’s equity sponsors, as well as through open market repurchases or other means, including through Rule 10b-18 trading plans or through the use of other techniques such as accelerated share repurchases. During the third quarter of 2022, the Company repurchased 1,077,640 shares of its common stock on the open market at an average price of $9.77 per share for a total cost of $11 million. In addition, in connection with a secondary offering of the Company’s common stock in August 2022, the Company repurchased 6,500,000 shares of its common stock sold in the offering from the underwriters at a price of $8.36 per share, for a total of $54 million. For possible future repurchases, the actual timing, number, and nature of shares repurchased will depend on a variety of factors, including stock price, trading volume, and general business and market conditions. The repurchase program does not obligate the Company to acquire any number of shares in any specific period, or at all, and may be amended, suspended or discontinued at any time at the Company’s discretion. As of September 30, 2022, $376 million was available for additional share repurchases under the program. Conference Call and Webcast Details On Tuesday, November 1, 2022, Ecovyst management will review the third quarter results during a conference call and audio-only webcast scheduled for 11:00 a.m. Eastern Time. Conference Call: Investors may listen to the conference call live via telephone by dialing 1 (800) 245-3047 (domestic) or 1 (203) 518-9765 (international) and use the participant code ECVTQ322. Webcast: An audio-only live webcast of the conference call and presentation materials can be accessed at https://investor.ecovyst.com. A replay of the conference call/webcast will be made available at https://investor.ecovyst.com/events-presentations. About Ecovyst Inc. Ecovyst Inc. and subsidiaries is a leading integrated and innovative global provider of specialty catalysts and services. We support customers globally through our strategically located network of manufacturing facilities. We believe that our products, which are predominantly inorganic, and services contribute to improving the sustainability of the environment. We have two uniquely positioned specialty businesses: Ecoservices provides sulfuric acid recycling to the North American refining industry for the production of alkylate and provides on-purpose virgin sulfuric acid for water treatment, mining, and industrial applications; and Catalyst Technologies provides finished silica catalysts and catalyst supports necessary to produce high strength and high stiffness plastics and, through its Zeolyst joint venture, supplies zeolites used for catalysts that help produce renewable fuels, remove nitrogen oxides from diesel engine emissions as well as sulfur from fuels during the refining process. For more information, see our website at https://www.ecovyst.com. Presentation of Non-GAAP Financial Measures In addition to the results provided in accordance with U.S. generally accepted accounting principles (“GAAP”) throughout this press release, the Company has provided non-GAAP financial measures — Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income, Adjusted free cash flow, Adjusted diluted EPS, and net leverage ratio (collectively, “Non-GAAP Financial Measures”) — which present results on a basis adjusted for certain items. The Company uses these Non-GAAP Financial Measures for business planning purposes and in measuring its performance relative to that of its competitors. The Company believes that these Non-GAAP Financial Measures are useful financial metrics to assess its operating performance from period-to-period by excluding certain items that the Company believes are not representative of its core business. These Non-GAAP Financial Measures are not intended to replace, and should not be considered superior to, the presentation of the Company’s financial results in accordance with GAAP. The use of the Non-GAAP Financial Measures terms may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures. These Non-GAAP Financial Measures are reconciled from the respective measures under GAAP in the appendix below. The Company is not able to provide a reconciliation of its non-GAAP financial guidance to the corresponding GAAP measures without unreasonable effort because of the inherent difficulty in forecasting and quantifying certain amounts necessary for such a reconciliation such as certain non-cash, nonrecurring or other items that are included in net income and EBITDA as well as the related tax impacts of these items and asset dispositions / acquisitions and changes in foreign currency exchange rates that are included in cash flow, due to the uncertainty and variability of the nature and amount of these future charges and costs. Zeolyst Joint Venture The Company’s zeolite catalysts product group operates through its Zeolyst Joint Venture, which is accounted for as an equity method investment in accordance with GAAP. The presentation of the Zeolyst Joint Venture’s sales represents 50% of the sales of the Zeolyst Joint Venture. The Company does not record sales by the Zeolyst Joint Venture as revenue and such sales are not consolidated within the Company’s results of operations. However, the Company’s Adjusted EBITDA reflects the share of earnings of the Zeolyst Joint Venture that have been recorded as equity in net income from affiliated companies in the Company’s consolidated statements of income for such periods and includes Zeolyst Joint Venture adjustments on a proportionate basis based on the Company’s 50% ownership interest. Accordingly, the Company’s Adjusted EBITDA margins are calculated including 50% of the sales of the Zeolyst Joint Venture for the relevant periods in the denominator. Note on Forward-Looking Statements Some of the information contained in this press release constitutes “forward-looking statements.” Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “projects” and similar references to future periods. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Examples of forward-looking statements include, but are not limited to, statements regarding our future results of operations, financial condition, liquidity, prospects, growth, strategies, capital allocation program (including the stock repurchase program), product and service offerings, expected demand trends and our 2022 financial outlook. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you, therefore, against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, regional, national or global political, economic, business, competitive, market and regulatory conditions, including the COVID-19 pandemic, tariffs and trade disputes, currency exchange rates, the effects of inflation, the ongoing war in Ukraine and other factors, including those described in the sections titled “Risk Factors” and “Management’s Discussion & Analysis of Financial Condition and Results of Operations” in our filings with the SEC, which are available on the SEC’s website at www.sec.gov. These forward-looking statements speak only as of the date of this release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by applicable law. ECOVYST INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in millions, except share and per share amounts) Three months ended September 30, Nine months ended September 30, 2022 2021 % Change 2022 2021 % Change Sales $ 232.5 $ 167.4 38.9 % $ 637.4 $ 441.0 44.5 % Cost of goods sold 164.8 113.8 44.8 % 462.2 318.8 45.0 % Gross profit 67.7 53.6 26.3 % 175.3 122.2 43.5 % Selling, general and administrative expenses 21.5 24.8 (13.3) % 67.8 68.8 (1.5) % Other operating expense, net 7.7 6.3 22.2 % 25.1 16.8 49.4 % Operating income 38.5 22.5 71.1 % 82.4 36.6 125.1 % Equity in net (income) from affiliated companies (3.2) (8.8) (63.6) % (17.4) (20.7) (15.9) % Interest expense, net 9.5 9.0 5.6 % 26.9 28.2 (4.6) % Debt extinguishment costs — 15.2 (100.0) % — 26.9 (100.0) % Other expense (income), net 1.9 (0.2) NM 2.5 3.1 (19.4) % Income (loss) before income taxes and noncontrolling interest 30.3 7.3 315.1 % 70.4 (0.9) NM Provision for income taxes 9.0 2.6 246.2 % 22.0 5.1 331.4 % Effective tax rate 29.6% 35.6 % 31.2 % (610.9) % Net income (loss) from continuing operations 21.3 4.7 353.2 % 48.4 (6.0) (906.7) % Net loss from discontinued operations, net of tax — (75.9 ) (100.0) % — (159.1) (100.0) % Net income (loss) 21.3 (71.2) (129.9) % 48.4 (165.1) (129.3) % Less: Net income attributable to the noncontrolling interest—discontinued operations — 0.1 (100.0) % — 0.3 (100.0) % Net income (loss) attributable to Ecovyst Inc. $ 21.3 $ (71.3) (129.9) % $ 48.4 $ (165.4) (129.3) % Income (loss) from continuing operations attributable to Ecovyst Inc. $ 21.3 $ 4.7 $ 48.4 $ (6.0) Loss from discontinued operations attributable to Ecovyst Inc. $ — $ (76.0) $ — $ (159.4) Net income (loss) attributable to Ecovyst Inc. $ 21.3 $ (71.3) $ 48.4 $ (165.4) Earnings per share: Basic income (loss) per share—continuing operations $ 0.16 $ 0.03 $ 0.36 $ (0.04) Diluted income (loss) per share—continuing operations $ 0.16 $ 0.03 $ 0.35 $ (0.04) Weighted average shares outstanding: Basic 132,622,105 136,129,591 136,115,598 136,111,555 Diluted 134,096,839 137,354,427 137,666,215 136,111,555 ECOVYST INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, except share and per share amounts) September 30, 2022 December 31, 2021 ASSETS Cash and cash equivalents $ 121.4 $ 140.9 Accounts receivable, net 107.0 80.8 Inventories, net 49.7 53.8 Prepaid and other current assets 46.1 16.2 Total current assets 324.2 291.7 Investments in affiliated companies 426.7 446.1 Property, plant and equipment, net 581.4 596.2 Goodwill 401.2 406.1 Other intangible assets, net 132.3 145.6 Right-of-use lease assets 29.7 30.1 Other long-term assets 36.3 15.4 Total assets $ 1,931.8 $ 1,931.2 LIABILITIES Current maturities of long-term debt $ 9.0 $ 9.0 Accounts payable 52.0 51.9 Operating lease liabilities—current 8.6 8.3 Accrued liabilities 65.1 75.9 Total current liabilities 134.7 145.1 Long-term debt, excluding current portion 867.6 872.8 Deferred income taxes 148.0 126.7 Operating lease liabilities—noncurrent 21.0 21.7 Other long-term liabilities 21.0 24.2 Total liabilities 1,192.3 1,190.5 Commitments and contingencies EQUITY Common stock ($0.01 par); authorized shares 450,000,000; issued shares 139,485,868 and 137,820,971 on September 30, 2022 and December 31, 2021, respectively; outstanding shares 130,100,834 and 136,938,758 on September 30, 2022 and December 31, 2021, respectively 1.4 1.4 Preferred stock ($0.01 par); authorized shares 50,000,000; no shares issued or outstanding on September 30, 2022 and December 31, 2021 — — Additional paid-in capital 1,088.7 1,073.4 Accumulated deficit (267.3 ) (315.7 ) Treasury stock, at cost; shares 9,385,034 and 882,213 on September 30, 2022 and December 31, 2021, respectively (86.6 ) (12.6 ) Accumulated other comprehensive income (loss) 3.3 (5.8 ) Total equity 739.5 740.7 Total liabilities and equity $ 1,931.8 $ 1,931.2 ECOVYST INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Nine months ended September 30, 2022 2021 Cash flows from operating activities: (in millions) Net income (loss) $ 48.4 $ (165.1 ) Net loss from discontinued operations — 159.1 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation 48.3 49.9 Amortization 10.5 10.2 Amortization of deferred financing costs and original issue discount 1.5 1.4 Debt extinguishment costs — 12.8 Foreign currency exchange loss 2.2 4.8 Deferred income tax provision 12.5 4.3 Net loss on asset disposals 1.2 4.5 Stock compensation 17.4 22.8 Equity in net income from affiliated companies (17.4 ) (20.7 ) Dividends received from affiliated companies 30.0 20.0 Other, net (2.8 ) 6.7 Working capital changes that provided (used) cash, excluding the effect of acquisitions and dispositions: Receivables (28.4 ) (33.8 ) Inventories 3.2 6.1 Prepaids and other current assets (5.2 ) (8.4 ) Accounts payable 2.0 10.1 Accrued liabilities (14.1 ) 7.5 Net cash provided by operating activities, continuing operations 109.3 92.3 Net cash used by operating activities, discontinued operations — (7.4 ) Net cash provided by operating activities 109.3 84.9 Cash flows from investing activities: Purchases of property, plant and equipment (39.5 ) (44.6 ) Proceeds from business divestiture, net of cash — 980.4 Payments for business divestiture, net of cash (3.7 ) — Business combinations, net of cash acquired (0.5 ) (42.8 ) Other, net 0.1 (0.1 ) Net cash (used in) provided by investing activities, continuing operations (43.6 ) 892.9 Net cash used in investing activities, discontinued operations — (40.9 ) Net cash (used in) provided by investing activities (43.6 ) 852.0 Cash flows from financing activities: Issuance of long-term debt, net of discount — 897.8 Debt issuance costs — (1.3 ) Repayments of long-term debt (6.8 ) (1,428.6 ) Debt prepayment fees — (8.5 ) Proceeds from failed sale-leaseback — 14.6 Dividends paid to stockholders — (435.6 ) Repurchases of common shares (73.7 ) — Tax withholdings on equity award vesting (0.3 ) (1.5 ) Proceeds from stock options exercised 0.1 0.2 Repayment of financing obligations (1.8 ) (0.5 ) Other, net (0.1 ) (0.1 ) Net cash used in financing activities, continuing operations (82.6 ) (963.5 ) Net cash used in financing activities, discontinued operations — (1.1 ) Net cash used in financing activities (82.6 ) (964.6 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash (2.6 ) (4.7 ) Net change in cash and cash equivalents (19.5 ) (32.4 ) Cash and cash equivalents at beginning of period 140.9 137.2 Cash and cash equivalents at end of period 121.4 104.8 Less: cash, cash equivalents, and restricted cash of discontinued operations — — Cash and cash equivalents at end of period of continuing operations $ 121.4 $ 104.8 Appendix Table A-1: Reconciliation of Net Income (Loss) to Adjusted EBITDA Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 (in millions) Reconciliation of net income (loss) from continuing operations to Adjusted EBITDA Net income (loss) from continuing operations $ 21.3 $ 4.7 $ 48.4 $ (6.0 ) Provision for income taxes 9.0 2.6 22.0 5.1 Interest expense, net 9.5 9.0 26.9 28.2 Depreciation and amortization 19.6 20.6 58.8 60.1 EBITDA 59.4 36.9 156.1 87.4 Joint venture depreciation, amortization and interest(a) 3.9 4.1 12.0 11.4 Amortization of investment in affiliate step-up(b) 1.6 1.6 4.8 4.9 Debt extinguishment costs — 15.2 — 26.9 Net loss on asset disposals(c) 0.5 2.2 1.2 4.5 Foreign currency exchange loss(d) 1.0 0.9 2.2 4.8 LIFO benefit(e) (0.4 ) (1.3 ) — (2.0 ) Transaction and other related costs(f) 1.8 0.5 6.9 1.6 Equity-based compensation 4.7 10.2 17.4 22.8 Restructuring, integration and business optimization expenses(g) 1.3 0.1 6.4 2.4 Defined benefit pension plan expense (benefit)(h) 0.3 (1.0 ) (0.8 ) (2.2 ) Other(i) 1.3 — 1.4 1.9 Adjusted EBITDA $ 75.4 $ 69.4 $ 207.6 $ 164.4 Descriptions to Ecovyst Non-GAAP Reconciliations (a) We use Adjusted EBITDA as a performance measure to evaluate our financial results. Because the Catalyst Technologies segment includes our 50% interest in the Zeolyst Joint Venture, we include an adjustment for our 50% proportionate share of depreciation, amortization and interest expense of the Zeolyst Joint Venture. (b) Represents the amortization of the fair value adjustments associated with the equity affiliate investment in the Zeolyst Joint Venture as a result of the combination of the businesses of PQ Holdings Inc. and Eco Services Operations LLC in May 2016. We determined the fair value of the equity affiliate investment and the fair value step-up was then attributed to the underlying assets of the Zeolyst Joint Venture. Amortization is primarily related to the fair value adjustments associated with fixed assets and intangible assets, including customer relationships and technical know-how. (c) When asset disposals occur, we remove the impact of net gain/loss of the disposed asset because such impact primarily reflects the non-cash write-off of long-lived assets no longer in use. (d) Reflects the exclusion of the foreign currency transaction gains and losses in the statements of income primarily related to the non-permanent intercompany debt denominated in local currency translated to U.S. dollars. (e) Represents non-cash adjustments to the Company’s LIFO reserves for certain inventories in the U.S. that are valued using the LIFO method, which we believe provides a means of comparison to other companies that may not use the same basis of accounting for inventories. (f) Relates to certain transaction costs, including debt financing, due diligence and other costs related to transactions that are completed, pending or abandoned, that we believe are not representative of our ongoing business operations. (g) Includes the impact of restructuring, integration and business optimization expenses which are incremental costs that are not representative of our ongoing business operations. (h) Represents adjustments for defined benefit pension plan (benefit) costs in our statements of income. All of our defined benefit pension plan obligations are under defined benefit pension plans that are frozen. As such, we do not view such income or expenses as core to our ongoing business operations. (i) Other costs consist of certain expenses that are not core to our ongoing business operations, including environmental remediation-related costs, capital and franchise taxes. Included in this line-item are rounding discrepancies that may arise from rounding from dollars (in thousands) to dollars (in millions). Appendix Table A-2: Reconciliation of Net Income (Loss) to Adjusted Net Income(1) Three months ended September 30, 2022 2021 Pre-tax Tax expense (benefit) After-tax Pre-tax Tax expense (benefit) After-tax (in millions) Net income from continuing operations $ 30.3 $ 9.0 $ 21.3 $ 7.3 $ 2.6 $ 4.7 Earnings per share: Basic earnings per share - continuing operations $ 0.16 $ 0.03 Diluted earnings per share - continuing operations $ 0.16 $ 0.03 Net income from continuing operations $ 30.3 $ 9.0 $ 21.3 $ 7.3 $ 2.6 $ 4.7 Amortization of investment in affiliate step-up(b) 1.6 0.5 1.1 1.6 0.5 1.1 Debt extinguishment costs — — — 15.2 4.4 10.8 Net loss on asset disposals(c) 0.5 0.2 0.3 2.2 0.5 1.7 Foreign currency exchange loss(d) 1.0 0.2 0.8 0.9 0.2 0.7 LIFO benefit(e) (0.4 ) (0.1 ) (0.3 ) (1.3 ) (0.4 ) (0.9 ) Transaction and other related costs(f) 1.8 0.5 1.3 0.5 0.2 0.3 Equity-based compensation 4.7 0.1 4.6 10.2 2.9 7.3 Restructuring, integration and business optimization expenses(g) 1.3 0.4 0.9 0.1 0.1 — Defined benefit plan pension expense (benefit)(h) 0.3 0.1 0.2 (1.0 ) (0.3 ) (0.7 ) Other(i) 1.3 0.4 0.9 — — — Adjusted Net Income, including Intraperiod allocation 42.4 11.3 31.1 35.7 10.7 25.0 Intraperiod allocation for restating discontinued operations(3) — — — — (0.5 ) 0.5 Adjusted Net Income(1) $ 42.4 $ 11.3 $ 31.1 $ 35.7 $ 10.2 $ 25.5 Adjusted earnings per share: Adjusted basic earnings per share $ 0.23 $ 0.19 Adjusted diluted earnings per share $ 0.23 $ 0.19 Weighted average shares outstanding: Basic 132,622,105 136,129,591 Diluted 134,096,839 137,354,427 Nine months ended September 30, 2022 2021 Pre-tax Tax expense (benefit) After-tax Pre-tax Tax expense (benefit) After-tax (in millions) Net income (loss) from continuing operations $ 70.4 $ 22.0 $ 48.4 $ (0.9 ) $ 5.1 $ (6.0 ) Earnings per share: Basic earnings (loss) per share - continuing operations $ 0.36 $ (0.04 ) Diluted earnings (loss) per share - continuing operations $ 0.35 $ (0.04 ) Net income (loss) from continuing operations $ 70.4 $ 22.0 $ 48.4 $ (0.9 ) $ 5.1 $ (6.0 ) Amortization of investment in affiliate step-up(b) 4.8 1.3 3.5 4.9 1.4 3.5 Debt extinguishment costs — — — 26.9 7.5 19.4 Net loss on asset disposals(c) 1.2 0.3 0.9 4.5 1.2 3.3 Foreign currency exchange loss(d) 2.2 0.4 1.8 4.8 1.3 3.5 LIFO benefit(e) — — — (2.0 ) (0.6 ) (1.4 ) Transaction and other related costs(f) 6.9 1.7 5.2 1.6 0.5 1.1 Equity-based compensation(2) 17.4 0.6 16.8 22.8 6.4 16.4 Restructuring, integration and business optimization expenses(g) 6.4 1.8 4.6 2.4 0.7 1.7 Defined benefit plan pension benefit(h) (0.8 ) (0.2 ) (0.6 ) (2.2 ) (0.6 ) (1.6 ) Other(i) 1.4 0.4 1.0 1.9 0.6 1.3 Adjusted Net Income, including Intraperiod allocation 109.9 28.3 81.6 64.7 23.5 41.2 Intraperiod allocation for restating discontinued operations(3) — — — — (5.3 ) 5.3 Adjusted Net Income(1) $ 109.9 $ 28.3 $ 81.6 $ 64.7 $ 18.2 $ 46.5 Adjusted earnings per share: Adjusted basic earnings per share $ 0.60 $ 0.34 Adjusted diluted earnings per share $ 0.59 $ 0.34 Weighted average shares outstanding: Basic 136,115,598 136,111,555 Diluted 137,666,215 136,111,555 See Appendix Table A-1 for Descriptions to Ecovyst Non-GAAP Reconciliations in the table above. (1) We define adjusted net income as net income attributable to Ecovyst adjusted for non-operating income or expense and the impact of certain non-cash or other items that are included in net income that we do not consider indicative of our ongoing operating performance. Adjusted net income is presented as a key performance indicator as we believe it will enhance a prospective investor’s understanding of our results of operations and financial condition. Adjusted net income may not be comparable with net income or adjusted net income as defined by other companies. (2) Includes tax adjustments for the shortfall in stock compensation. (3) Due to the sale of the Performance Chemicals business, the tax rates used to value deferred tax assets (“DTAs”) and deferred tax liabilities (“DTLs”) needs to be adjusted. Given it is a direct result of the sale of discontinued operations and the need to adjust the tax rate arose because of discontinued operations, the impact of revaluing the reporting entity’s DTAs and DTLs are reflected in continuing operations. Appendix Table A-3: Sales and Adjusted EBITDA by Business Segment Three months ended September 30, Nine months ended September 30, 2022 2021 % Change 2022 2021 % Change Sales: Ecoservices $ 195.7 $ 137.5 42.3 % $ 542.7 $ 358.5 51.4 % Silica Catalysts 36.8 29.9 23.1 % 94.7 82.5 14.8 % Total sales $ 232.5 $ 167.4 38.9 % $ 637.4 $ 441.0 44.5 % Zeolyst Joint Venture sales $ 27.8 $ 32.8 (15.3) % $ 92.7 $ 95.0 (2.4) % Adjusted EBITDA: Ecoservices $ 64.1 $ 51.9 23.5 % $ 173.4 $ 125.4 38.3 % Catalyst Technologies 19.3 25.5 (24.3) % 57.7 64.6 (10.7) % Unallocated corporate expenses (8.0) (8.0) — % (23.5) (25.6) (8.2) % Total Adjusted EBITDA $ 75.4 $ 69.4 8.6 % $ 207.6 $ 164.4 26.3 % Adjusted EBITDA Margin: Ecoservices 32.8 % 37.7 % 32.0 % 35.0 % Catalyst Technologies(1) 29.9 % 40.7 % 30.8 % 36.4 % Total Adjusted EBITDA Margin(1) 29.0 % 34.7 % 28.4 % 30.7 % (1) Adjusted EBITDA margin calculation includes proportionate 50% share of sales from the Zeolyst Joint Venture. Appendix Table A-4: Adjusted Free Cash Flow Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 (in millions) Net cash provided by operating activities, continuing operations $ 56.5 $ 55.1 $ 109.3 $ 92.3 Net cash used in operating activities, discontinued operations — (19.5 ) — (7.4 ) Net cash provided by operating activities 56.5 35.6 109.3 84.9 Less: Purchases of property, plant and equipment, continuing operations (13.7 ) (16.6 ) (39.5 ) (44.6 ) Purchases of property, plant and equipment, discontinued operations — (9.0 ) — (31.0 ) Purchases of property, plant and equipment(1) (13.7 ) (25.6 ) (39.5 ) (75.6 ) Free cash flow 42.8 10.0 69.8 9.3 Adjustments to free cash flow: Proceeds from sale of assets — — — 0.3 Net interest proceeds on currency swaps — — — 2.3 Cash paid for costs related to segment disposals 0.7 19.3 14.8 40.3 — 5.7 — 5.7 Adjusted free cash flow(2) $ 43.5 $ 35.0 $ 84.6 $ 57.9 Net cash (used in) provided by investing activities(3) $ (14.1 ) $ 954.0 $ (43.6 ) $ 852.0 Net cash used in financing activities $ (70.7 ) $ (958.5 ) $ (82.6 ) $ (964.6 ) (1) Excludes the Company’s proportionate 50% share of capital expenditures from the Zeolyst Joint Venture. (2) We define adjusted free cash flow as net cash provided by operating activities less purchases of property, plant and equipment, adjusted for proceeds from sale of assets, net interest proceeds on swaps designated as net investment hedges, the cash paid for segment disposals and cash paid for debt financing costs included in cash from operating activities. Adjusted free cash flow is a non-GAAP financial measure that we believe will enhance a prospective investor’s understanding of our ability to generate additional cash from operations and is an important financial measure for use in evaluating our financial performance. Our presentation of adjusted free cash flow is not intended to replace, and should not be considered superior to, the presentation of our net cash provided by operating activities determined in accordance with GAAP. Additionally, our definition of adjusted free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, we believe it is important to view adjusted free cash flow as a measure that provides supplemental information to our consolidated statements of cash flows. You should not consider adjusted free cash flow in isolation or as an alternative to the presentation of our financial results in accordance with GAAP. The presentation of adjusted free cash flow may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures. (3) Net cash used in investing activities includes purchases of property, plant and equipment, proceeds from sale of assets and net interest proceeds on swaps designated as net investment hedges, which are also included in our computation of adjusted free cash flow.
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Ecovyst (ECVT) Q3 Earnings Miss Estimates
Ecovyst (ECVT) delivered earnings and revenue surprises of -8% and 2.57%, respectively, for the quarter ended September 2022. Do the numbers hold clues to what lies ahead for the stock?
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Ecovyst to Host Third Quarter Earnings Conference Call and Webcast on Tuesday, November 1, 2022 at 11:00 a.m. ET
MALVERN, Pa.--(BUSINESS WIRE)--Ecovyst Inc. (NYSE: ECVT), a leading integrated and innovative global provider of specialty catalysts and services, announced today that it will conduct a conference call and audio-only webcast on Tuesday, November 1, 2022 at 11:00 a.m. Eastern Time to review its third quarter 2022 financial results. Investors may listen to the conference call live via telephone by dialing 1 (800) 245-3047 (domestic) or 1 (203) 518-9765 (international) and use the participant code ECVTQ322. An audio-only live webcast of the conference call and presentation materials can be accessed at https://investor.ecovyst.com. A replay of the conference call/webcast will be made available at https://investor.ecovyst.com/events-presentations. About Ecovyst Inc. Ecovyst Inc. and subsidiaries is a leading integrated and innovative global provider of specialty catalysts and services. We support customers globally through our strategically located network of manufacturing facilities. We believe that our products, which are predominantly inorganic, and services contribute to improving the sustainability of the environment. We have two uniquely positioned specialty businesses: Ecoservices provides sulfuric acid recycling to the North American refining industry for the production of alkylate and provides on-purpose virgin sulfuric acid for water treatment, mining, and industrial applications; and Catalyst Technologies provides finished silica catalysts and catalyst supports necessary to produce high strength and high stiffness plastics and, through its Zeolyst joint venture, supplies zeolites used for catalysts that remove nitric oxide from diesel engine emissions as well as sulfur from fuels during the refining process. For more information, see our website at https://www.ecovyst.com. Source: Ecovyst Inc.
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Why Ecovyst Stock Dropped as Much as 19% Today
A slew of shares are being sold, but the company won't see a dime of the money.
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Ecovyst Announces Upsize and Pricing of Secondary Offering of 13,000,000 Shares of Common Stock by Selling Stockholders and Repurchase of Common Stock
MALVERN, Pa.--(BUSINESS WIRE)--Ecovyst Inc. (NYSE: ECVT) (the “Company”) today announced the upsize and pricing of the previously announced underwritten public offering (the “Offering”) by funds affiliated with CCMP Capital Advisors, LP (the “Selling Stockholders”). The size of the Offering increased from the previously announced 12,000,000 shares to an aggregate of 13,000,000 shares of the Company's common stock at a price to the public of $8.75 per share. The Offering is expected to close on August 8, 2022, subject to customary closing conditions. The Selling Stockholders have granted the underwriters a 30-day option to purchase up to 1,950,000 additional shares at the public offering price less underwriting discounts and commissions. The Selling Stockholders will receive all of the net proceeds from the Offering. No shares are being sold by the Company. Subject to the completion of the Offering, the Company intends to repurchase from the underwriters 6,500,000 shares of the common stock being sold in the Offering at a price per share equal to the price per share paid by the underwriters to the Selling Stockholders in the Offering. The Company intends to fund the share repurchase with cash on hand and cash from operations. The closing of the share repurchase is conditioned on, and expected to occur simultaneously with, the closing of the Offering. The Offering is expected to close on August 8, 2022, subject to customary closing conditions. Goldman Sachs & Co. LLC, Deutsche Bank Securities and Credit Suisse are serving as the joint lead book-running managers of the Offering. Citigroup, BMO Capital Markets, Morgan Stanley, Jefferies and KeyBanc Capital Markets are also serving as book-running managers of the Offering. C.L. King & Associates are serving as a co-manager of the Offering. An automatic shelf registration statement (including a prospectus) relating to the Offering was filed with the Securities and Exchange Commission (“SEC”) on April 26, 2021 and became effective upon filing. Before you invest, you should read the prospectus included in that registration statement and the documents incorporated by reference in that registration statement as well as the prospectus supplement related to the Offering. You may obtain these documents for free by visiting EDGAR on the SEC website at www.sec.gov. When available, copies of the prospectus supplement and accompanying prospectus related to the Offering may also be obtained from Goldman Sachs & Co. LLC, 200 West Street, New York, NY 10282 Attention: Prospectus Department, by telephone: (866) 471-2526 or by email at prospectus-ny@ny.email.gs.com; Deutsche Bank Securities Inc., Attention: Prospectus Department, 1 Columbus Circle, New York, NY 10019, by telephone at 1-800-503-4611 or by email at prospectus.cpdg@db.com; or Credit Suisse Securities (USA) LLC, Attn: Prospectus Department, 6933 Louis Stephens Drive, Morrisville, North Carolina 27560, United States or by telephone at (800) 221-1037 or by email at usa.prospectus@credit-suisse.com. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction. Any offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time prior to notice of its acceptance given after the effective date. About Ecovyst Ecovyst Inc. and subsidiaries is a leading integrated and innovative global provider of specialty catalysts and services. We support customers globally through our strategically located network of manufacturing facilities. We believe that our products, which are predominantly inorganic, and services contribute to improving the sustainability of the environment. We have two uniquely positioned specialty businesses: Ecoservices provides sulfuric acid recycling to the North American refining industry for the production of alkylate and provides on-purpose virgin sulfuric acid for water treatment, mining, and industrial applications; and Catalyst Technologies provides finished silica catalysts and catalyst supports necessary to produce high strength and high stiffness plastics and, through its Zeolyst joint venture, supplies zeolites used for catalysts that help produce renewable fuels, remove nitrogen oxides from diesel engine emissions as well as sulfur from fuels during the refining process. Forward-Looking Statement This press release includes statements that express our opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and therefore are, or may be deemed to be, “forward-looking statements.” These forward-looking statements can generally be identified by the use of forward-looking terminology, including the terms “believes,” “expects,” “may,” “will,” “should,” “seeks,” “projects,” “approximately,” “intends,” “plans,” “estimates” or “anticipates,” or, in each case, their negatives or other variations or comparable terminology. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future, including risks and uncertainties relating to the consummation of the proposed Offering by the Selling Stockholders, the repurchase of common stock, and the risks identified, or incorporated by reference, in the prospectus supplement or accompanying prospectus.
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Ecovyst Announces Secondary Offering of 12,000,000 Shares of Common Stock by Selling Stockholders and Repurchase of Common Stock
MALVERN, Pa.--(BUSINESS WIRE)--Ecovyst Inc. (NYSE: ECVT) (the “Company”) today announced that funds affiliated with CCMP Capital Advisors, LP (the “Selling Stockholders”) intend to offer for sale 12,000,000 shares of its common stock pursuant to the Company’s shelf registration statement filed with the Securities and Exchange Commission (the “Offering”). In addition, the Selling Stockholders have granted the underwriters a 30-day option to purchase up to 1,800,000 additional shares at the public offering price less underwriting discounts and commissions. The Selling Stockholders will receive all of the net proceeds from the Offering. No shares are being sold by the Company. Subject to the completion of the Offering, the Company intends to repurchase from the underwriters 6,000,000 shares of the common stock being sold in the Offering at a price per share equal to the price per share paid by the underwriters to the Selling Stockholders in the Offering. The Company intends to fund the share repurchase with cash on hand and cash from operations. The closing of the share repurchase is conditioned on, and expected to occur simultaneously with, the closing of the Offering. The Offering is subject to market and other conditions, and there can be no assurance as to whether or when the Offering may be completed. Goldman Sachs & Co. LLC, Deutsche Bank Securities and Credit Suisse are serving as the joint lead book-running managers of the Offering. An automatic shelf registration statement (including a prospectus) relating to the Offering was filed with the Securities and Exchange Commission (“SEC”) on April 26, 2021 and became effective upon filing. Before you invest, you should read the prospectus included in that registration statement and the documents incorporated by reference in that registration statement as well as the prospectus supplement related to the Offering. You may obtain these documents for free by visiting EDGAR on the SEC website at www.sec.gov. When available, copies of the prospectus supplement and accompanying prospectus related to the Offering may also be obtained from Goldman Sachs & Co. LLC, 200 West Street, New York, NY 10282 Attention: Prospectus Department, by telephone: (866) 471-2526 or by email at prospectus-ny@ny.email.gs.com; Deutsche Bank Securities Inc., Attention Prospectus Department, 1 Columbus Circle, New York, NY 10019, by telephone at 1-800-503-4611 or by email at prospectus.cpdg@db.com; or Credit Suisse Securities (USA) LLC, Attn: Prospectus Department, 6933 Louis Stephens Drive, Morrisville, North Carolina 27560, United States or by telephone at (800) 221-1037 or by email at usa.prospectus@credit-suisse.com. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction. Any offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time prior to notice of its acceptance given after the effective date. About Ecovyst Ecovyst Inc. and subsidiaries is a leading integrated and innovative global provider of specialty catalysts and services. We support customers globally through our strategically located network of manufacturing facilities. We believe that our products, which are predominantly inorganic, and services contribute to improving the sustainability of the environment. We have two uniquely positioned specialty businesses: Ecoservices provides sulfuric acid recycling to the North American refining industry for the production of alkylate and provides on-purpose virgin sulfuric acid for water treatment, mining, and industrial applications; and Catalyst Technologies provides finished silica catalysts and catalyst supports necessary to produce high strength and high stiffness plastics and, through its Zeolyst joint venture, supplies zeolites used for catalysts that help produce renewable fuels, remove nitrogen oxides from diesel engine emissions as well as sulfur from fuels during the refining process. Forward-Looking Statement This press release includes statements that express our opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and therefore are, or may be deemed to be, “forward-looking statements.” These forward-looking statements can generally be identified by the use of forward-looking terminology, including the terms “believes,” “expects,” “may,” “will,” “should,” “seeks,” “projects,” “approximately,” “intends,” “plans,” “estimates” or “anticipates,” or, in each case, their negatives or other variations or comparable terminology. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future, including risks and uncertainties relating to the consummation of the proposed Offering by the Selling Stockholders, the repurchase of common stock, and the risks identified, or incorporated by reference, in the prospectus supplement or accompanying prospectus.
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Anna C. Catalano Joins Ecovyst Board of Directors
MALVERN, Pa.--(BUSINESS WIRE)--Ecovyst Inc. (NYSE: ECVT) (“the Company”), a leading integrated and innovative global provider of specialty catalysts and services, announced today that Anna C. Catalano has been elected to the Company’s Board of Directors (the "Ecovyst Board"). Ms. Catalano will bring extensive business experience and two decades of public and private board service to the Ecovyst Board. “We are extremely pleased to welcome Anna Catalano to the Ecovyst’s Board. Anna is an experienced business executive with broad knowledge and extensive industry insight that will be of significant benefit to Ecovyst and its stockholders,” said Kurt J. Bitting, Ecovyst’s Chief Executive Officer. “We look forward to Anna’s guidance and counsel as we continue to implement our long-term strategies to deliver growth and exceptional value to our stockholders.” In addition, the Company announced that Greg Brenneman and Martin Craighead have retired from the Ecovyst Board effective July 27, 2022. Mr. Brenneman has served as a director of Ecovyst since 2014 and Mr. Craighead has served as a director of Ecovyst since 2017. “On behalf of the Ecovyst Board and our management team, we want to thank Greg and Martin for their dedication, thoughtful leadership and their many contributions throughout the years. Their guidance contributed to Ecovyst’s many successes and they have been instrumental in the recent transformation that we believe has positioned our company for even greater success in the years to come. We wish Greg and Martin well in their future endeavors,” said Bitting. About Anna C. Catalano From 1979 to 2003, Ms. Catalano held a variety of positions with BP plc and its predecessor company, Amoco Corporation, concluding as Group Vice President, Marketing for BP at the time of her retirement in 2003. In 2010, Ms. Catalano co-founded The World Innovation Network, a non-profit network of innovators to work toward global prosperity, and continued work with that organization until 2021. She currently serves on the board of directors of HF Sinclair Corporation, where she is a member of the Nominating/Governance and Compensation Committees, and Frontdoor, Inc., where she is the chair of the Compensation Committee. She formerly served on the boards of directors of Willis Towers Watson, Kraton Corporation, Mead Johnson Nutrition, and Chemtura Corporation. She holds a B.S. degree in Marketing and Business Administration from the University of Illinois, Champaign – Urbana and also has been active with the National Association of Corporate Directors (including its Corporate Directors Institute), the Alzheimer’s Association and the Houston Grand Opera. About Ecovyst Inc. Ecovyst Inc. and subsidiaries is a leading integrated and innovative global provider of specialty catalysts and services. We support customers globally through our strategically located network of manufacturing facilities. We believe that our products, which are predominantly inorganic, and services contribute to improving the sustainability of the environment. We have two uniquely positioned specialty businesses: Ecoservices provides sulfuric acid recycling to the North American refining industry for the production of alkylate and provides on-purpose virgin sulfuric acid for water treatment, mining, and industrial applications; and Catalyst Technologies provides finished silica catalysts and catalyst supports necessary to produce high strength and high stiffness plastics and, through its Zeolyst joint venture, supplies zeolites used for catalysts that help produce renewable fuels, remove nitric oxide from diesel engine emissions as well as sulfur from fuels during the refining process. For more information, see our website at https://www.ecovyst.com. Source: Ecovyst Inc.
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Ecovyst Inc. (ECVT) CEO Kurt Bitting on Q2 2022 Results - Earnings Call Transcript
Ecovyst Inc. (NYSE:ECVT ) Q2 2022 Results Conference Call July 29, 2022 11:00 AM ET Company Participants Gene Shiels - Director of Investor Relations Kurt Bitting - Chief Executive Officer Mike Feehan - Chief Financial Officer Conference Call Participants John McNulty - BMO Capital Markets Stefan Diaz - Morgan Stanley Daniel Rizzo - Jefferies Patrick Cunningham - Citigroup David Silver - CL King Hamed Khorsand - BWS Financial Operator Good morning. My name is Katie, and I will be your conference operator today.
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Ecovyst (ECVT) Q2 Earnings and Revenues Surpass Estimates
Ecovyst (ECVT) delivered earnings and revenue surprises of 29.41% and 11.36%, respectively, for the quarter ended June 2022. Do the numbers hold clues to what lies ahead for the stock?
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Ecovyst Reports Second Quarter 2022 Results and Raises Sales and Adjusted EBITDA Guidance; Continued Sales and Earnings Growth with Pricing Offsetting Inflation Driving Profitability
MALVERN, Pa.--(BUSINESS WIRE)--Ecovyst Inc. (NYSE: ECVT) (“Ecovyst” or the “Company”) a leading integrated and innovative global provider of specialty catalysts and services, today reported results for the second quarter ended June 30, 2022 and is raising its prior 2022 guidance. Second Quarter 2022 Results & Highlights Sales of $225 million, up 53% compared to the second quarter of 2021 Net income of $19 million with diluted earnings per share of $0.14; Adjusted net income of $30 million with Adjusted diluted earnings per share of $0.22 Adjusted EBITDA of $73 million, up 38% year-over-year with adjusted EBITDA margins of 28% Year-to-date net cash from operations of $53 million, Adjusted Free Cash Flow of $41 million, and reduced net leverage ratio to 2.8x, compared to 3.3x at year-end 2021 Repurchased 893,123 shares at an average price of $9.88, for total cost of $8.8 million. Ecovyst results reflect continuing operations for the Ecoservices and Catalyst Technologies businesses, renamed from Refining Services and Catalysts, respectively. Financial results are on a continuing operations basis, which excludes the Performance Materials and Performance Chemicals businesses due to the recent divestitures from all quarterly and year-to-date results presented, unless otherwise indicated. Financial results and outlook include non-GAAP financial measures. These non-GAAP measures are more fully described and are reconciled from the respective measures determined under GAAP in “Presentation of Non-GAAP Financial Measures” and the attached appendix. Second Quarter 2022 Results Sales for the quarter ended June 30, 2022 were $225 million, up 53% with the increase reflecting higher average selling prices (inclusive of a 25% sales increase, or $37 million, associated with the pass-through of higher sulfur costs), higher sales of virgin sulfuric acid and regeneration services in our Ecoservices business along with higher sales of polyethylene catalysts, hydrocracking catalysts and niche custom catalysts in our Catalyst Technologies business. Net income was $19 million, an increase of $27 million, with a diluted earnings per share of $0.14. Adjusted net income was $30 million with an Adjusted diluted earnings per share of $0.22. Adjusted EBITDA was $73 million, an increase of $20 million or 38%, driven by higher sales volumes and higher pricing that more than offset increases in variable costs. The Adjusted EBITDA margin of 28% decreased 140 bps versus the prior year period, primarily driven by the negative impact of 450 basis points on margin from the pass-through of higher sulfur costs in price. Excluding the 450 basis points, Adjusted EBITDA margin would have been 32%, up 310 basis points versus the prior year period. “We are extremely pleased with our results for the second quarter of 2022 as they reflect strong financial performance as well as solid operational execution and continued progress in implementing our long-term strategies to deliver growth and enhanced profitability,” said Kurt J. Bitting, Ecovyst’s Chief Executive Officer. “As a leading supplier to the key producers of materials that enable lower carbon technologies, we expect to continue to benefit from global sustainability trends. In addition, we anticipate our business will remain resilient in the current environment, as the contractual pass-through provisions in our Ecoservices contracts, in concert with prudent pricing actions in our Catalyst Technologies business, have allowed us to mitigate inflationary pressures and expand unit margins,” Bitting added. Review of Segment Results and Business Trends We continue to believe the macroeconomic recovery that gained momentum throughout 2021 and drove improved demand across most product categories, end-uses, and customers has continued thus far in 2022, and we anticipate relative stability in demand over the balance of 2022. Inflationary factors, including higher costs for sulfur, energy, logistics, and other raw materials, have continued through the first six months of 2022. However, contractual pass-through mechanisms and targeted price increases have served to mitigate the impact of higher variable costs on our businesses. Supply chain headwinds, including constrained availability and higher costs for transportation and logistics, have remained a factor. However, we have continued efforts to moderate the associated impact on our businesses through enhanced coordination and planning with customers and suppliers using our strategic network. Ecoservices Our regeneration services support the production of alkylate, a high value gasoline component critical for meeting stringent gasoline standards and for producing premium grade gasoline. Tightening of gasoline standards and growing demand for premium grade gasoline to power high compression, more efficient engines resulted in higher utilization of our customers’ alkylation units. Sulfuric acid is one of the most widely used chemicals and it plays a key role in producing a wide array of materials, particularly those supporting green infrastructure. Our sales of virgin sulfuric acid continued to benefit from strong mining activity for metals and minerals that provide conductivity in low carbon technologies, as well as strong demand from numerous industrial segments, including construction, auto, and packaging materials. We believe sustainability trends continue to favor the treatment services business as customers seek the sustainability-focused waste solutions offered by Ecoservices. Sales of $193 million were up 60% compared to the year-ago quarter. Sales increased on higher pricing, including pass-through of higher sulfur cost of approximately $37 million, as well as higher sales of virgin sulfuric acid and regeneration services. Adjusted EBITDA of $60 million increased 48% year over year, largely attributable to favorable pricing that more than offset higher raw material and operating costs, along with the continued strong demand for both virgin sulfuric acid and regeneration services. Catalyst Technologies Growth in demand for polyethylene films and packaging continued to drive higher sales of polyethylene catalysts. In addition, refineries have experienced high demand for both traditional and renewable fuels. We continue to expect growth in demand for catalysts used in these applications. Similar to other global businesses, shipping delays impacted the timing of sales to fulfill our customers’ needs. In addition, elevated refined product demand resulting in both high refining industry utilization and high refining margins has resulted in the delay of planned turnarounds, and therefore has impacted the timing of certain catalyst sales. During the second quarter of 2022, Silica catalysts sales were $32 million, up 23% compared to the year-ago quarter, reflecting higher polyethylene and niche custom catalysts sales. Price increases implemented in late 2021 and an energy surcharge program continued to mitigate the impact of inflation on costs. Zeolyst Joint Venture sales of $36 million were up 8% on higher hydrocracking and niche custom catalysts sales. Adjusted EBITDA, which includes the Zeolyst Joint Venture, was $21 million, up 3% as higher sales volumes were partially offset by unfavorable product mix and higher production costs. Cash Flows and Balance Sheet Cash flows from operating activities was $53 million for the six months ended June 30, 2022, compared to $49 million for the six months ended June 30, 2021. At June 30, 2022, the Company had total gross debt of $891 million and available liquidity of $236 million, including cash and cash equivalents of $151 million. The net debt to Adjusted EBITDA ratio was 2.8x as of June 30, 2022. 2022 Financial Outlook The Company is adjusting its 2022 guidance as follows: Sales of $830 million to $850 million1 (increased from $810 million to $830 million, including the expected impact of the pass-through of higher sulfur costs) Sales of $135 million to $145 million (change from $150 million to $160 million) for proportionate 50% share of Zeolyst Joint Venture, which is excluded from GAAP Sales Adjusted EBITDA of $265 million to $275 million (increased from $260 million to $270 million), up 19% from 2021 at the mid-point of the range Adjusted Free Cash Flow of $115 million to $125 million Capital Expenditures of $55 million to $65 million 1Sales outlook for 2022 includes approximately $120 million of higher sales vs. 2021 due to the pass through of increased sulfur costs, which is expected to negatively impact Adjusted EBITDA margin by more than (600) basis points, but has no material impact to Adjusted EBITDA. Stock Repurchase Authorization In April 2022, the Company’s Board of Directors approved a new stock repurchase program authorizing the repurchase of up to $450 million of the Company’s outstanding common stock over the next four years. Repurchases under the program are expected to be funded using cash on hand and cash generated from operations. Ecovyst primarily expects to conduct the repurchase program through negotiated transactions with Ecovyst’s equity sponsors, as well as through open market repurchases or other means, including through Rule 10b-18 trading plans or through the use of other techniques such as accelerated share repurchases. During the second quarter of 2022, the Company purchased 893,123 shares at an average price of $9.88, for a total cost of $8.8 million. For possible future repurchases, the actual timing, number and nature of shares repurchased will depend on a variety of factors, including stock price, trading volume, and general business and market conditions. The repurchase program does not obligate the Company to acquire any number of shares in any specific period, or at all, and may be amended, suspended or discontinued at any time at the Company’s discretion. Conference Call and Webcast Details On Friday, July 29, 2022, Ecovyst management will review the second quarter results during a conference call and audio-only webcast scheduled for 11:00 a.m. Eastern Time. Conference Call: Investors may listen to the conference call live via telephone by dialing 1 (800) 343-4849 (domestic) or 1 (203) 518-9765 (international) and use the participant code ECVTQ222. Webcast: An audio-only live webcast of the conference call and presentation materials can be accessed at https://investor.ecovyst.com. A replay of the conference call/webcast will be made available at https://investor.ecovyst.com/events-presentations. About Ecovyst Inc. Ecovyst Inc. and subsidiaries is a leading integrated and innovative global provider of specialty catalysts and services. We support customers globally through our strategically located network of manufacturing facilities. We believe that our products, which are predominantly inorganic, and services contribute to improving the sustainability of the environment. We have two uniquely positioned specialty businesses: Ecoservices provides sulfuric acid recycling to the North American refining industry for the production of alkylate and provides on-purpose virgin sulfuric acid for water treatment, mining, and industrial applications; and Catalyst Technologies provides finished silica catalysts and catalyst supports necessary to produce high strength and high stiffness plastics and, through its Zeolyst joint venture, supplies zeolites used for catalysts that help produce renewable fuels, remove nitrogen oxides from diesel engine emissions as well as sulfur from fuels during the refining process. For more information, see our website at https://www.ecovyst.com. Presentation of Non-GAAP Financial Measures In addition to the results provided in accordance with U.S. generally accepted accounting principles (“GAAP”) throughout this press release, the Company has provided non-GAAP financial measures — Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income, Adjusted free cash flow, Adjusted diluted EPS, net debt, and net leverage ratio (collectively, “Non-GAAP Financial Measures”) — which present results on a basis adjusted for certain items. The Company uses these Non-GAAP Financial Measures for business planning purposes and in measuring its performance relative to that of its competitors. The Company believes that these Non-GAAP Financial Measures are useful financial metrics to assess its operating performance from period-to-period by excluding certain items that the Company believes are not representative of its core business. These Non-GAAP Financial Measures are not intended to replace, and should not be considered superior to, the presentation of the Company’s financial results in accordance with GAAP. The use of the Non-GAAP Financial Measures terms may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures. These Non-GAAP Financial Measures are reconciled from the respective measures under GAAP in the appendix below. The Company is not able to provide a reconciliation of its non-GAAP financial guidance to the corresponding GAAP measures without unreasonable effort because of the inherent difficulty in forecasting and quantifying certain amounts necessary for such a reconciliation such as certain non-cash, nonrecurring or other items that are included in net income and EBITDA as well as the related tax impacts of these items and asset dispositions / acquisitions and changes in foreign currency exchange rates that are included in cash flow, due to the uncertainty and variability of the nature and amount of these future charges and costs. Zeolyst Joint Venture The Company’s zeolite catalysts product group operates through its Zeolyst Joint Venture, which is accounted for as an equity method investment in accordance with GAAP. The presentation of the Zeolyst Joint Venture’s sales represents 50% of the sales of the Zeolyst Joint Venture. The Company does not record sales by the Zeolyst Joint Venture as revenue and such sales are not consolidated within the Company’s results of operations. However, the Company’s Adjusted EBITDA reflects the share of earnings of the Zeolyst Joint Venture that have been recorded as equity in net income from affiliated companies in the Company’s consolidated statements of income for such periods and includes Zeolyst Joint Venture adjustments on a proportionate basis based on the Company’s 50% ownership interest. Accordingly, the Company’s Adjusted EBITDA margins are calculated including 50% of the sales of the Zeolyst Joint Venture for the relevant periods in the denominator. Note on Forward-Looking Statements Some of the information contained in this press release constitutes “forward-looking statements.” Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “projects” and similar references to future periods. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Examples of forward-looking statements include, but are not limited to, statements regarding our future results of operations, financial condition, liquidity, prospects, growth, strategies, capital allocation program (including the stock repurchase program), product and service offerings, expected demand trends and our 2022 financial outlook. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you, therefore, against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, regional, national or global political, economic, business, competitive, market and regulatory conditions, including the ongoing COVID-19 pandemic, tariffs and trade disputes, currency exchange rates, the effects of inflation, the ongoing war in Ukraine and other factors, including those described in the sections titled “Risk Factors” and “Management’s Discussion & Analysis of Financial Condition and Results of Operations” in our filings with the SEC, which are available on the SEC’s website at www.sec.gov. These forward-looking statements speak only as of the date of this release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by applicable law. ECOVYST INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in millions, except share and per share amounts) Three months ended June 30, Six months ended June 30, 2022 2021 % Change 2022 2021 % Change Sales $ 225.2 $ 147.0 53.2 % $ 404.9 $ 273.6 48.0 % Cost of goods sold 165.3 108.5 52.4 % 297.3 205.0 45.0 % Gross profit 59.9 38.5 55.6 % 107.6 68.6 56.9 % Selling, general and administrative expenses 22.8 21.9 4.1 % 46.3 44.0 5.2 % Other operating expense, net 9.7 5.0 94.0 % 17.4 10.5 65.7 % Operating income 27.4 11.6 136.2 % 43.9 14.1 211.3 % Equity in net (income) from affiliated companies (8.5) (6.8) 25.0 % (14.3) (12.0) 19.2 % Interest expense, net 8.9 8.7 2.3 % 17.3 19.2 (9.9) % Debt extinguishment costs — 11.7 (100.0) % — 11.7 (100.0) % Other expense (income), net 0.5 (1.8) (127.8) % 0.8 3.3 (75.8) % Income (loss) before income taxes and noncontrolling interest 26.5 (0.2) NM 40.1 (8.1) (595.1) % Provision for income taxes 7.3 7.7 (5.2) % 13.0 2.5 420.0 % Effective tax rate 27.5 % (4,371.6) % 32.4 % (30.9) % Net income (loss) from continuing operations 19.2 (7.9) (343.0) % 27.1 (10.6) (355.7) % Net income (loss) from discontinued operations, net of tax — 6.5 (100.0) % — (83.3) (100.0) % Net income (loss) 19.2 (1.4) NM 27.1 (93.9) (128.9) % Less: Net income attributable to the noncontrolling interest—discontinued operations — 0.1 (100.0) % — 0.3 (100.0) % Net income (loss) attributable to Ecovyst Inc. $ 19.2 $ (1.5) NM $ 27.1 $ (94.2) (128.8) % Income (loss) from continuing operations attributable to Ecovyst Inc. $ 19.2 $ (7.9) $ 27.1 $ (10.6) Income (loss) from discontinued operations attributable to Ecovyst Inc. $ — $ 6.4 $ — $ (83.6) Net income (loss) attributable to Ecovyst Inc. $ 19.2 $ (1.5) $ 27.1 $ (94.2) Earnings per share: Basic income (loss) per share—continuing operations $ 0.14 $ (0.06) $ 0.20 $ (0.08) Diluted income (loss) per share—continuing operations $ 0.14 $ (0.06) $ 0.19 $ (0.08) Weighted average shares outstanding: Basic 138,035,764 136,095,060 137,876,185 136,072,165 Diluted 139,149,560 137,586,914 139,175,659 137,708,005 ECOVYST INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, except share and per share amounts) June 30, 2022 December 31, 2021 ASSETS Cash and cash equivalents $ 151.2 $ 140.9 Accounts receivable, net 113.2 80.8 Inventories, net 56.2 53.8 Prepaid and other current assets 36.0 16.2 Total current assets 356.6 291.7 Investments in affiliated companies 426.3 446.1 Property, plant and equipment, net 583.6 596.2 Goodwill 403.2 406.1 Other intangible assets, net 137.0 145.6 Right-of-use lease assets 30.0 30.1 Other long-term assets 31.1 15.4 Total assets $ 1,967.8 $ 1,931.2 LIABILITIES Current maturities of long-term debt $ 9.0 $ 9.0 Accounts payable 57.9 51.9 Operating lease liabilities—current 8.4 8.3 Accrued liabilities 58.8 75.9 Total current liabilities 134.1 145.1 Long-term debt, excluding current portion 869.3 872.8 Deferred income taxes 144.1 126.7 Operating lease liabilities—noncurrent 21.5 21.7 Other long-term liabilities 20.6 24.2 Total liabilities 1,189.6 1,190.5 Commitments and contingencies EQUITY Common stock ($0.01 par); authorized shares 450,000,000; issued shares 139,624,577 and 137,820,971 on June 30, 2022 and December 31, 2021, respectively; outstanding shares 137,817,183 and 136,938,758 on June 30, 2022 and December 31, 2021, respectively 1.4 1.4 Preferred stock ($0.01 par); authorized shares 50,000,000; no shares issued or outstanding on June 30, 2022 and December 31, 2021 — — Additional paid-in capital 1,084.8 1,073.4 Accumulated deficit (288.6) (315.7) Treasury stock, at cost; shares 1,807,394 and 882,213 on June 30, 2022 and December 31, 2021, respectively (21.7) (12.6) Accumulated other comprehensive income (loss) 2.3 (5.8) Total equity 778.2 740.7 Total liabilities and equity $ 1,967.8 $ 1,931.2 ECOVYST INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Six months ended June 30, 2022 2021 Cash flows from operating activities: (in millions) Net income (loss) $ 27.1 $ (93.9) Net loss from discontinued operations — 83.3 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation 32.2 33.5 Amortization 7.1 6.0 Amortization of deferred financing costs and original issue discount 1.0 0.7 Debt extinguishment costs — 6.0 Foreign currency exchange loss 1.1 3.9 Deferred income tax provision 11.3 4.3 Net loss on asset disposals 0.7 2.4 Stock compensation 12.7 12.6 Equity in net income from affiliated companies (14.3) (12.0) Dividends received from affiliated companies 30.0 10.0 Other, net (4.4) (4.4) Working capital changes that provided (used) cash, excluding the effect of acquisitions and dispositions: Receivables (33.2) (18.4) Inventories (3.1) 5.5 Prepaids and other current assets — (1.8) Accounts payable 9.7 2.6 Accrued liabilities (25.1) (3.1) Net cash provided by operating activities, continuing operations 52.8 37.2 Net cash provided by operating activities, discontinued operations — 12.1 Net cash provided by operating activities 52.8 49.3 Cash flows from investing activities: Purchases of property, plant and equipment (25.8) (28.0) Payments for business divestiture (3.7) — Business combinations, net of cash acquired — (42.0) Net cash used in investing activities, continuing operations (29.5) (70.0) Net cash used in investing activities, discontinued operations — (32.0) Net cash used in investing activities (29.5) (102.0) Cash flows from financing activities: Issuance of long-term debt, net of discount — 897.8 Debt issuance costs — (1.3) Repayments of long-term debt (4.5) (900.0) Repurchases of common shares (7.1) — Tax withholdings on equity award vesting (0.3) (1.5) Net cash used in financing activities, continuing operations (11.9) (5.0) Net cash used in financing activities, discontinued operations — (1.1) Net cash used in financing activities (11.9) (6.1) Effect of exchange rate changes on cash, cash equivalents and restricted cash (1.1) (3.3) Net change in cash, cash equivalents and restricted cash 10.3 (62.1) Cash, cash equivalents and restricted cash at beginning of period 140.9 137.2 Cash, cash equivalents and restricted cash at end of period $ 151.2 $ 75.1 Less: cash, cash equivalents, and restricted cash of discontinued operations — (17.6) Cash, cash equivalents and restricted cash at end of period of continuing operations $ 151.2 $ 57.4 Appendix Table A-1: Reconciliation of Net Income (Loss) to Adjusted EBITDA Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 (in millions) Reconciliation of net income (loss) from continuing operations to Adjusted EBITDA Net income (loss) from continuing operations $ 19.2 $ (7.9) $ 27.1 $ (10.6) Provision for income taxes 7.3 7.7 13.0 2.5 Interest expense, net 8.9 8.7 17.3 19.2 Depreciation and amortization 19.7 20.0 39.2 39.5 EBITDA 55.1 28.5 96.6 50.6 Joint venture depreciation, amortization and interest(a) 4.0 3.7 8.1 7.3 Amortization of investment in affiliate step-up(b) 1.6 1.6 3.2 3.3 Debt extinguishment costs — 11.7 — 11.7 Net loss on asset disposals(c) 0.6 1.6 0.7 2.4 Foreign currency exchange loss (gain)(d) 0.5 (1.2) 1.1 3.9 LIFO expense (benefit)(e) 0.2 (0.5) 0.4 (0.7) Transaction and other related costs(f) 0.8 0.6 5.1 1.1 Equity-based compensation 5.4 6.3 12.7 12.6 Restructuring, integration and business optimization expenses(g) 4.7 0.1 5.1 2.3 Defined benefit pension plan benefit(h) (0.6) (0.6) (1.1) (1.2) Other(i) 0.6 0.9 0.2 1.7 Adjusted EBITDA $ 72.9 $ 52.7 $ 132.1 $ 95.0 Descriptions to Ecovyst Non-GAAP Reconciliations (a) We use Adjusted EBITDA as a performance measure to evaluate our financial results. Because the Catalyst Technologies segment includes our 50% interest in the Zeolyst Joint Venture, we include an adjustment for our 50% proportionate share of depreciation, amortization and interest expense of the Zeolyst Joint Venture. (b) Represents the amortization of the fair value adjustments associated with the equity affiliate investment in the Zeolyst Joint Venture as a result of a prior business combination. We determined the fair value of the equity affiliate investment and the fair value step-up was then attributed to the underlying assets of the Zeolyst Joint Venture. Amortization is primarily related to the fair value adjustments associated with fixed assets and intangible assets, including customer relationships and technical know-how. (c) When asset disposals occur, we remove the impact of net gain/loss of the disposed asset because such impact primarily reflects the non-cash write-off of long-lived assets no longer in use. (d) Reflects the exclusion of the foreign currency transaction gains and losses in the statements of income primarily related to the non-permanent intercompany debt denominated in local currency translated to U.S. dollars. (e) Represents non-cash adjustments to the Company’s LIFO reserves for certain inventories in the U.S. that are valued using the LIFO method, which we believe provides a means of comparison to other companies that may not use the same basis of accounting for inventories. (f) Relates to certain transaction costs, including debt financing, due diligence and other costs related to transactions that are completed, pending or abandoned, that we believe are not representative of our ongoing business operations. (g) Includes the impact of restructuring, integration and business optimization expenses which are incremental costs that are not representative of our ongoing business operations. (h) Represents adjustments for defined benefit pension plan (benefit) costs in our statements of income. All of our defined benefit pension plan obligations are under defined benefit pension plans that are frozen. As such, we do not view such income or expenses as core to our ongoing business operations. (i) Other costs consist of certain expenses that are not core to our ongoing business operations, including environmental remediation-related costs, capital and franchise taxes. Included in this line-item are rounding discrepancies that may arise from rounding from dollars (in thousands) to dollars (in millions). Appendix Table A-2: Reconciliation of Net Income (Loss) to Adjusted Net Income(1) Three months ended June 30, 2022 2021 Pre-tax Tax expense (benefit) After-tax Pre-tax Tax expense (benefit) After-tax (in millions) Net income (loss) from continuing operations $ 26.5 $ 7.3 $ 19.2 $ (0.2) $ 7.7 $ (7.9) Earnings per share: Basic earnings (loss) per share - continuing operations $ 0.14 $ (0.06) Diluted earnings (loss) per share - continuing operations $ 0.14 $ (0.06) Net income (loss) from continuing operations $ 26.5 $ 7.3 $ 19.2 $ (0.2) $ 7.7 $ (7.9) Amortization of investment in affiliate step-up(b) 1.6 0.4 1.2 1.6 0.4 1.2 Debt extinguishment costs — — — 11.7 3.1 8.6 Net loss on asset disposals(c) 0.6 0.2 0.4 1.6 0.4 1.2 Foreign currency exchange loss (gain)(d) 0.5 0.1 0.4 (1.2) (0.4) (0.8) LIFO expense (benefit)(e) 0.2 — 0.2 (0.5) (0.1) (0.4) Transaction and other related costs(f) 0.8 0.2 0.6 0.6 0.2 0.4 Equity-based compensation 5.4 0.7 4.7 6.3 1.7 4.6 Restructuring, integration and business optimization expenses(g) 4.7 1.2 3.5 0.1 — 0.1 Defined benefit plan pension benefit(h) (0.6) — (0.6) (0.6) (0.2) (0.4) Other(i) 0.6 0.1 0.5 0.9 0.4 0.5 Adjusted Net Income, including Intraperiod allocation 40.3 10.2 30.1 20.3 13.2 7.1 Intraperiod allocation for restating discontinued operations(3) — — — — (7.8) 7.8 Adjusted Net Income(1) $ 40.3 $ 10.2 $ 30.1 $ 20.3 $ 5.4 $ 14.9 Adjusted earnings per share: Adjusted basic earnings per share $ 0.22 $ 0.11 Adjusted diluted earnings per share $ 0.22 $ 0.11 Weighted average shares outstanding: Basic 138,035,764 136,095,060 Diluted 139,149,560 137,586,914 Six months ended June 30, 2022 2021 Pre-tax Tax expense (benefit) After-tax Pre-tax Tax expense (benefit) After-tax (in millions) Net income (loss) from continuing operations $ 40.1 $ 13.0 $ 27.1 $ (8.1) $ 2.5 $ (10.6) Earnings per share: Basic earnings (loss) per share - continuing operations $ 0.20 $ (0.08) Diluted earnings (loss) per share - continuing operations $ 0.19 $ (0.08) Net income (loss) from continuing operations $ 40.1 $ 13.0 $ 27.1 $ (8.1) $ 2.5 $ (10.6) Amortization of investment in affiliate step-up(b) 3.2 0.8 2.4 3.3 0.9 2.4 Debt extinguishment costs — — — 11.7 3.1 8.6 Net loss on asset disposals(c) 0.7 0.2 0.5 2.4 0.7 1.7 Foreign currency exchange loss(d) 1.1 0.2 0.9 3.9 1.1 2.8 LIFO expense (benefit)(e) 0.4 0.1 0.3 (0.7) (0.2) (0.5) Transaction and other related costs(f) 5.1 1.2 3.9 1.1 0.3 0.8 Equity-based compensation(2) 12.7 0.4 12.3 12.6 3.5 9.1 Restructuring, integration and business optimization expenses(g) 5.1 1.3 3.8 2.3 0.6 1.7 Defined benefit plan pension benefit(h) (1.1) (0.2) (0.9) (1.2) (0.3) (0.9) Other(i) 0.2 — 0.2 1.7 0.5 1.2 Adjusted Net Income, including Intraperiod allocation 67.5 17.0 50.5 29.0 12.7 16.3 Intraperiod allocation for restating discontinued operations(3) — — — — (4.8) 4.8 Adjusted Net Income(1) $ 67.5 $ 17.0 $ 50.5 $ 29.0 $ 7.9 $ 21.1 Adjusted earnings per share: Adjusted basic earnings per share $ 0.37 $ 0.16 Adjusted diluted earnings per share $ 0.36 $ 0.15 Weighted average shares outstanding: Basic 137,876,185 136,072,165 Diluted 139,175,659 137,708,005 (1) We define adjusted net income as net income attributable to Ecovyst adjusted for non-operating income or expense and the impact of certain non-cash or other items that are included in net income that we do not consider indicative of our ongoing operating performance. Adjusted net income is presented as a key performance indicator as we believe it will enhance a prospective investor’s understanding of our results of operations and financial condition. Adjusted net income may not be comparable with net income or adjusted net income as defined by other companies. (2) Includes tax adjustments for the shortfall in stock compensation. (3) Due to the sale of the Performance Chemicals business, the tax rates used to value deferred tax assets (“DTAs”) and deferred tax liabilities (“DTLs”) needs to be adjusted. Given it is a direct result of the sale of discontinued operations and the need to adjust the tax rate arose because of discontinued operations, the impact of revaluing the reporting entity’s DTAs and DTLs are reflected in continuing operations. Appendix Table A-3: Sales and Adjusted EBITDA by Business Segment Three months ended June 30, Six months ended June 30, 2022 2021 % Change 2022 2021 % Change Sales: Ecoservices $ 193.0 $ 120.8 59.8 % $ 347.0 $ 221.0 57.0 % Silica Catalysts 32.2 26.2 22.9 % 57.9 52.6 10.1 % Total sales $ 225.2 $ 147.0 53.2 % $ 404.9 $ 273.6 48.0 % Zeolyst Joint Venture sales $ 35.9 $ 33.2 8.2 % $ 64.9 $ 62.2 4.4 % Adjusted EBITDA: Ecoservices $ 60.0 $ 40.5 48.1 % $ 109.3 $ 73.5 48.7 % Catalyst Technologies 21.4 20.7 3.4 % 38.4 39.2 (2.0) % Unallocated corporate expenses (8.5) (8.5) — % (15.6) (17.6) (11.4) % Total Adjusted EBITDA $ 72.9 $ 52.7 38.3 % $ 132.1 $ 95.0 39.1 % Adjusted EBITDA Margin: Ecoservices 31.1 % 33.5 % 31.5 % 33.3 % Catalyst Technologies(1) 31.4 % 34.9 % 31.3 % 34.1 % Total Adjusted EBITDA Margin(1) 27.9 % 29.3 % 28.1 % 28.3 % Adjusted EBITDA margin calculation includes proportionate 50% share of sales from the Zeolyst Joint Venture. Appendix Table A-4: Adjusted Free Cash Flow Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 (in millions) Net cash provided by operating activities, continuing operations $ 46.4 $ 20.7 $ 52.8 $ 37.2 Net cash provided by operating activities, discontinued operations — 11.2 — 12.1 Net cash provided by operating activities 46.4 31.9 52.8 49.3 Less: Purchases of property, plant and equipment, continuing operations (15.0) (15.4) (25.8) (28.0) Purchases of property, plant and equipment, discontinued operations — (10.3) — (22.0) Purchases of property, plant and equipment(1) (15.0) (25.7) (25.8) (50.0) Free cash flow 31.4 6.2 27.0 (0.7) Adjustments to free cash flow: Proceeds from sale of assets — — — 0.3 Net interest proceeds on currency swaps — — — 2.3 Cash paid for costs related to segment disposals 0.5 14.0 14.1 21.0 Adjusted free cash flow(2) $ 31.9 $ 20.2 $ 41.1 $ 22.9 Net cash used in investing activities(3) $ (15.1) $ (25.4) $ (29.5) $ (102.0) Net cash used in financing activities $ (9.3) $ (4.1) $ (11.9) $ (6.1) Excludes the Company’s proportionate 50% share of capital expenditures from the Zeolyst Joint Venture. We define adjusted free cash flow as net cash provided by operating activities less purchases of property, plant and equipment, adjusted for proceeds from sale of assets, net interest proceeds on swaps designated as net investment hedges, the cash paid for segment disposals and cash paid for debt financing costs included in cash from operating activities. Adjusted free cash flow is a non-GAAP financial measure that we believe will enhance a prospective investor’s understanding of our ability to generate additional cash from operations and is an important financial measure for use in evaluating our financial performance. Our presentation of adjusted free cash flow is not intended to replace, and should not be considered superior to, the presentation of our net cash provided by operating activities determined in accordance with GAAP. Additionally, our definition of adjusted free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, we believe it is important to view adjusted free cash flow as a measure that provides supplemental information to our consolidated statements of cash flows. You should not consider adjusted free cash flow in isolation or as an alternative to the presentation of our financial results in accordance with GAAP. The presentation of adjusted free cash flow may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures. Net cash used in investing activities includes purchases of property, plant and equipment, proceeds from sale of assets and net interest proceeds on swaps designated as net investment hedges, which are also included in our computation of adjusted free cash flow.
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Ecovyst to Host Second Quarter 2022 Earnings Conference Call and Webcast on Friday, July 29 2022 at 11:00 a.m. ET
MALVERN, Pa.--(BUSINESS WIRE)--Ecovyst Inc. (NYSE: ECVT), a leading integrated and innovative global provider of specialty catalysts and services, announced today that it will conduct a conference call and audio-only webcast on Friday, July 29, 2022 at 11:00 a.m. Eastern Time to review its second quarter 2022 financial results. Investors may listen to the conference call live via telephone by dialing 1 (800) 343-4849 (domestic) or 1 (203) 518-9765 (international) and use the participant code ECVTQ222. An audio-only live webcast of the conference call and presentation materials can be accessed at https://investor.ecovyst.com. A replay of the conference call/webcast will be made available at https://investor.ecovyst.com/events-presentations. About Ecovyst Inc. Ecovyst Inc. and subsidiaries is a leading integrated and innovative global provider of specialty catalysts and services. We support customers globally through our strategically located network of manufacturing facilities. We believe that our products, which are predominantly inorganic, and services contribute to improving the sustainability of the environment. We have two uniquely positioned specialty businesses: Ecoservices provides sulfuric acid recycling to the North American refining industry for the production of alkylate and provides on-purpose virgin sulfuric acid for water treatment, mining, and industrial applications; and Catalyst Technologies provides finished silica catalysts and catalyst supports necessary to produce high strength and high stiffness plastics and, through its Zeolyst joint venture, supplies zeolites used for catalysts that remove nitric oxide from diesel engine emissions as well as sulfur from fuels during the refining process. For more information, see our website at https://www.ecovyst.com.484 Source: Ecovyst Inc.
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