Ecovyst Announces New Chief Executive Officer and New Chairman of the Board of Directors, Reports First Quarter 2022 Results, Affirms 2022 Financial Outlook and Announces Share Repurchase Program
Ecovyst Inc. (NYSE:ECVT) appointed Kurt J. Bitting as CEO and Kevin M. Fogarty as Chairman of the Board while announcing a $450 million stock repurchase program. The company reported Q1 2022 sales of $180 million, a 42% increase year-over-year, with net income of $8 million. Adjusted EBITDA rose 40% to $59 million, reflecting strong demand and pricing power, despite cost pressures from inflation. Ecovyst reiterated its 2022 guidance, projecting sales of $810-$830 million. The addition of independent directors aims to enhance strategic leadership for sustainable growth.
- Q1 2022 sales of $180 million, a 42% increase year-over-year.
- Net income of $8 million, a 393% increase.
- Adjusted EBITDA increased 40% to $59 million.
- Initiation of a $450 million stock repurchase program to enhance shareholder value.
- Q1 operating cash flows decreased to $6 million from $17 million in Q1 2021.
- Net debt to Adjusted EBITDA ratio at 3.1x indicates potential financial strain.
First Quarter 2022 Results & Highlights
-
Sales of
, up$180 million 42% ; -
Net income of
with diluted income per share of$8 million ; Adjusted net income of$0.06 with Adjusted diluted EPS of$20 million ;$0.15 -
Adjusted EBITDA of
, up$59 million 40% year-over-year; -
Adjusted EBITDA margin of
28% , up 120 basis points year-over-year (inclusive of 320 bps negative impact from sulfur cost pass through) as realized price continues to offset higher costs, demonstrating resilient profitability; and -
In January, entered into two new interest rate cap agreements with notional amounts of
at$250 million 1.00% .
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.
Announcement of New Chief Executive Officer and Chairman
The Board of Directors is pleased to appoint
“As part of our long-term succession planning, we have been observing Kurt Bitting’s outstanding performance over the years and are excited to promote him to Chief Executive Officer,” said
“I am honored to take the reins as CEO of
“I am excited to work with Kurt, Tom and the entire team to support their continued success, as we seek to drive sustainable growth at
First Quarter 2022 Results
For the quarter ended
“Our strong first quarter results and business fundamentals are a few of the reasons I am excited to lead this company going forward,” said
Review of Segment Results and Business Trends
We believe the macroeconomic recovery that gained momentum throughout 2021 and drove improved demand across most product categories, end-uses, and customers is continuing into 2022. Inflationary factors, including higher costs for sulfur, energy, logistics, and other raw materials, continued through the first quarter, but customer contractual pass through mechanisms and targeted price increases mitigated the cost pressures and preserved earnings in our businesses. While supply chain challenges driving supply availability and transportation bottlenecks generated short-term headwinds, the Company moderated some of the impact on its businesses through enhanced coordination and planning with customers and suppliers using our strategic network.
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 fuel-efficient engines supported the high alkylation utilization results. Sulfuric acid is the most widely used commodity chemical and it plays a key role in producing a wide array of materials, particularly those supporting green infrastructure. Virgin sulfuric acid benefited from strong mining for metals and minerals that provide conductivity in low carbon technologies, as well as strong demand from numerous industrial segments producing construction, auto, and packaging materials. Sustainability trends continue to favor the treatment services business as customers seek the sustainability-focused waste solutions offered by
Sales of
Catalyst Technologies
The preferential use of polyethylene in films and packaging continued to increase demand for polyethylene catalysts. Refineries are producing both traditional and renewable fuels at high rates in order to meet the global demand for energy. We expect growth in demand for catalysts in these units during 2022. Purchases of niche custom catalysts that were deferred during the lower operating rate environment resulting from the COVID-19 disruption began to return, as we had anticipated. Similar to other global businesses, shipping delays impacted the timing of sales as we fulfill our customers’ demands.
Silica catalysts sales of
Cash Flows and Balance Sheet
Consolidated cash flows from operating activities was
2022 Financial Outlook
The company is reiterating its 2022 guidance, though adjusting the top line sales to reflect the impact of higher sulfur cost passed through in price.
-
Sales of
to$810 million 1 million (increased from$830 to$730 million to reflect the pass-through of higher sulfur costs);$750 million -
Sales of
to$150 million for proportionate$160 million 50% share of Zeolyst Joint Venture, which is excluded from GAAP Sales; -
Adjusted EBITDA of
to$260 million , up$270 million 16% from 2021 at the mid-point of the range; -
Adjusted Free Cash Flow of
to$115 million ; and$125 million -
Capital Expenditures of
to$55 million .$65 million
1Sales Outlook for 2022 includes approximately
Capital Allocation Strategy Update
The Company’s Board of Directors has approved a new stock repurchase program authorizing the repurchase of up to
“We are pleased to announce the initiation of a significant stock repurchase program, which is supported by our strong balance sheet and cash flow generation capability, and our confidence in our financial performance going forward,” said Ecovyst’s Chief Financial Officer
“Our business continues to perform well, and we remain confident in our ability to continue executing on our exciting growth initiatives in the coming years,” said Ecovyst’s Chief Executive Officer
Appointment of Additional Independent Directors
The Ecovyst Board of Directors announced today that, in addition to the appointment of
Conference Call and Webcast Details
On
Conference Call: Investors may listen to the conference call live via telephone by dialing 1 (800) 909-7113 (domestic) or 1 (785) 830-1914 (international) and use the participant code ECVTQ122.
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.
General Investor Inquiries:
InvestorRelations@ecovyst.com
About
We have two uniquely positioned specialty businesses:
Presentation of Non-GAAP Financial Measures
In addition to the results provided in accordance with
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
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 repurchase program and the possibility of implementing a dividend), product and service offerings, including the impact of the COVID-19 pandemic on such items, 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 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
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in millions, except share and per share amounts) |
|||||||||||
|
|
Three months ended March
|
|
|
|||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
% Change |
|
|
|
|
|||||||||
Sales |
|
$ |
179.7 |
|
|
$ |
126.6 |
|
|
41.9 |
% |
Cost of goods sold |
|
|
132.0 |
|
|
|
96.5 |
|
|
36.8 |
% |
Gross profit |
|
|
47.7 |
|
|
|
30.1 |
|
|
58.5 |
% |
Selling, general and administrative expenses |
|
|
23.5 |
|
|
|
22.1 |
|
|
6.3 |
% |
Other operating expense, net |
|
|
7.7 |
|
|
|
5.5 |
|
|
40.0 |
% |
Operating income |
|
|
16.5 |
|
|
|
2.5 |
|
|
560.0 |
% |
Equity in net (income) from affiliated companies |
|
|
(5.7 |
) |
|
|
(5.2 |
) |
|
9.6 |
% |
Interest expense, net |
|
|
8.5 |
|
|
|
10.5 |
|
|
(19.0 |
)% |
Other (income) expense, net |
|
|
0.1 |
|
|
|
5.1 |
|
|
(98.0 |
)% |
Income (loss) before income taxes and noncontrolling interest |
|
|
13.6 |
|
|
|
(7.9 |
) |
|
(272.2 |
)% |
Provision (benefit) for income taxes |
|
|
5.7 |
|
|
|
(5.2 |
) |
|
(209.6 |
)% |
Effective tax rate |
|
|
42.1 |
% |
|
|
65.4 |
% |
|
|
|
Net income (loss) from continuing operations |
|
|
7.9 |
|
|
|
(2.7 |
) |
|
(392.6 |
)% |
Net loss from discontinued operations, net of tax |
|
|
— |
|
|
|
(89.8 |
) |
|
(100.0 |
)% |
Net income (loss) |
|
|
7.9 |
|
|
|
(92.5 |
) |
|
(108.5 |
)% |
Less: Net income attributable to the noncontrolling interest - discontinued operations |
|
|
— |
|
|
|
0.1 |
|
|
(100.0 |
)% |
Net income (loss) attributable to |
|
$ |
7.9 |
|
|
$ |
(92.6 |
) |
|
(108.5 |
)% |
|
|
|
|
|
|
|
|||||
Income (loss) from continuing operations attributable to |
|
$ |
7.9 |
|
|
$ |
(2.7 |
) |
|
|
|
Loss from discontinued operations attributable to |
|
$ |
— |
|
|
$ |
(89.9 |
) |
|
|
|
Net income (loss) attributable to |
|
$ |
7.9 |
|
|
$ |
(92.6 |
) |
|
|
|
|
|
|
|
|
|
|
|||||
Earnings per share: |
|
|
|
|
|
|
|||||
Basic income (loss) per share - continuing operations |
|
$ |
0.06 |
|
|
$ |
(0.02 |
) |
|
|
|
Diluted income (loss) per share - continuing operations |
|
$ |
0.06 |
|
|
$ |
(0.02 |
) |
|
|
|
|
|
|
|
|
|
|
|||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|||||
Basic |
|
|
137,684,773 |
|
|
|
136,006,082 |
|
|
|
|
Diluted |
|
|
138,749,065 |
|
|
|
136,006,082 |
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, except share and per share amounts) |
|||||||
|
|
|
|
||||
ASSETS |
|
|
|
||||
Cash and cash equivalents |
$ |
129.7 |
|
|
$ |
140.9 |
|
Accounts receivable, net |
|
91.1 |
|
|
|
80.8 |
|
Inventories, net |
|
54.7 |
|
|
|
53.8 |
|
Prepaid and other current assets |
|
26.7 |
|
|
|
16.2 |
|
Total current assets |
|
302.2 |
|
|
|
291.7 |
|
Investments in affiliated companies |
|
436.1 |
|
|
|
446.1 |
|
Property, plant and equipment, net |
|
588.7 |
|
|
|
596.2 |
|
|
|
405.3 |
|
|
|
406.1 |
|
Other intangible assets, net |
|
141.7 |
|
|
|
145.6 |
|
Right-of-use lease assets |
|
30.9 |
|
|
|
30.1 |
|
Other long-term assets |
|
30.3 |
|
|
|
15.4 |
|
Total assets |
$ |
1,935.2 |
|
|
$ |
1,931.2 |
|
LIABILITIES |
|
|
|
||||
Current maturities of long-term debt |
$ |
9.0 |
|
|
$ |
9.0 |
|
Accounts payable |
|
52.5 |
|
|
|
51.9 |
|
Operating lease liabilities—current |
|
8.4 |
|
|
|
8.3 |
|
Accrued liabilities |
|
43.1 |
|
|
|
75.9 |
|
Total current liabilities |
|
113.0 |
|
|
|
145.1 |
|
Long-term debt, excluding current portion |
|
871.1 |
|
|
|
872.8 |
|
Deferred income taxes |
|
140.6 |
|
|
|
126.7 |
|
Operating lease liabilities—noncurrent |
|
22.4 |
|
|
|
21.7 |
|
Other long-term liabilities |
|
22.4 |
|
|
|
24.2 |
|
Total liabilities |
|
1,169.5 |
|
|
|
1,190.5 |
|
Commitments and contingencies |
|
|
|
||||
EQUITY |
|
|
|
||||
Common stock ( |
|
1.4 |
|
|
|
1.4 |
|
Preferred stock ( |
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
1,079.4 |
|
|
|
1,073.4 |
|
Accumulated deficit |
|
(307.8 |
) |
|
|
(315.7 |
) |
|
|
(12.9 |
) |
|
|
(12.6 |
) |
Accumulated other comprehensive loss |
|
5.6 |
|
|
|
(5.8 |
) |
Total equity |
|
765.7 |
|
|
|
740.7 |
|
Total liabilities and equity |
$ |
1,935.2 |
|
|
$ |
1,931.2 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
|
Three months ended
|
||||||
|
|
2022 |
|
|
|
2021 |
|
Cash flows from operating activities: |
(in millions) |
||||||
Net income (loss) |
$ |
7.9 |
|
|
$ |
(92.5 |
) |
Net loss from discontinued operations |
|
— |
|
|
|
89.8 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation |
|
16.0 |
|
|
|
16.5 |
|
Amortization |
|
3.5 |
|
|
|
3.0 |
|
Amortization of deferred financing costs and original issue discount |
|
0.5 |
|
|
|
0.5 |
|
Foreign currency exchange loss |
|
0.6 |
|
|
|
5.1 |
|
Deferred income tax provision |
|
9.3 |
|
|
|
(4.3 |
) |
Net loss on asset disposals |
|
0.1 |
|
|
|
0.8 |
|
Stock compensation |
|
7.3 |
|
|
|
6.3 |
|
Equity in net income from affiliated companies |
|
(5.7 |
) |
|
|
(5.2 |
) |
Dividends received from affiliated companies |
|
15.0 |
|
|
|
5.0 |
|
Other, net |
|
(7.4 |
) |
|
|
(4.0 |
) |
Working capital changes that provided (used) cash, excluding the effect of acquisitions and dispositions: |
|
|
|
||||
Receivables |
|
(10.4 |
) |
|
|
(9.4 |
) |
Inventories |
|
(1.0 |
) |
|
|
4.6 |
|
Prepaids and other current assets |
|
(3.6 |
) |
|
|
(2.2 |
) |
Accounts payable |
|
2.2 |
|
|
|
4.7 |
|
Accrued liabilities |
|
(27.9 |
) |
|
|
(2.0 |
) |
Net cash provided by operating activities, continuing operations |
|
6.4 |
|
|
|
16.5 |
|
Net cash (used in) provided by operating activities, discontinued operations |
|
— |
|
|
|
0.9 |
|
Net cash provided by operating activities |
|
6.4 |
|
|
|
17.4 |
|
Cash flows from investing activities: |
|
|
|
||||
Purchases of property, plant and equipment |
|
(10.8 |
) |
|
|
(12.6 |
) |
Proceeds from business divestiture, net of cash and indebtedness |
|
(3.7 |
) |
|
|
— |
|
Business combinations, net of cash acquired |
|
— |
|
|
|
(42.0 |
) |
Other, net |
|
0.1 |
|
|
|
— |
|
Net cash used in investing activities, continuing operations |
|
(14.4 |
) |
|
|
(54.6 |
) |
Net cash used in investing activities, discontinued operations |
|
— |
|
|
|
(22.0 |
) |
Net cash used in investing activities |
|
(14.4 |
) |
|
|
(76.6 |
) |
Cash flows from financing activities: |
|
|
|
||||
Repayments of long-term debt |
|
(2.3 |
) |
|
|
— |
|
Tax withholdings on equity award vesting |
|
(0.3 |
) |
|
|
(1.5 |
) |
Net cash used in financing activities, continuing operations |
|
(2.6 |
) |
|
|
(1.5 |
) |
Net cash used in provided by financing activities, discontinued operations |
|
— |
|
|
|
(0.5 |
) |
Net cash used in financing activities |
|
(2.6 |
) |
|
|
(2.0 |
) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
(0.6 |
) |
|
|
(2.7 |
) |
Net change in cash, cash equivalents and restricted cash |
|
(11.2 |
) |
|
|
(63.9 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
140.9 |
|
|
|
137.2 |
|
Cash, cash equivalents and restricted cash at end of period |
|
129.7 |
|
|
|
73.3 |
|
Less: cash, cash equivalents, and restricted cash of discontinued operations |
|
— |
|
|
|
(16.6 |
) |
Cash, cash equivalents and restricted cash at end of period of continuing operations |
$ |
129.7 |
|
|
$ |
56.8 |
|
Appendix Table A-1: Reconciliation of Net Income (Loss) to Adjusted EBITDA |
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|
|
Three months ended
|
||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
|
(in millions) |
||||||
Reconciliation of net income (loss) from continuing operations to Adjusted EBITDA |
|
|
|
|
||||
Net income (loss) from continuing operations |
|
$ |
7.9 |
|
|
$ |
(2.7 |
) |
Provision (benefit) for income taxes |
|
|
5.7 |
|
|
|
(5.2 |
) |
Interest expense, net |
|
|
8.5 |
|
|
|
10.5 |
|
Depreciation and amortization |
|
|
19.5 |
|
|
|
19.5 |
|
EBITDA |
|
|
41.6 |
|
|
|
22.1 |
|
Joint venture depreciation, amortization and interest(a) |
|
|
4.1 |
|
|
|
3.6 |
|
Amortization of investment in affiliate step-up(b) |
|
|
1.6 |
|
|
|
1.7 |
|
Net loss on asset disposals(c) |
|
|
0.1 |
|
|
|
0.8 |
|
Foreign currency exchange loss(d) |
|
|
0.6 |
|
|
|
5.1 |
|
LIFO expense (benefit)(e) |
|
|
0.2 |
|
|
|
(0.3 |
) |
Transaction and other related costs(f) |
|
|
4.3 |
|
|
|
0.5 |
|
Equity-based compensation |
|
|
7.3 |
|
|
|
6.3 |
|
Restructuring, integration and business optimization expenses(g) |
|
|
0.4 |
|
|
|
2.3 |
|
Defined benefit pension plan benefit(h) |
|
|
(0.6 |
) |
|
|
(0.6 |
) |
Other(i) |
|
|
(0.4 |
) |
|
|
0.8 |
|
Adjusted EBITDA |
|
$ |
59.2 |
|
|
$ |
42.3 |
|
|
|
|
|
|
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 |
|
|
||
(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 |
|
|
||
(e) |
Represents non-cash adjustments to the Company’s LIFO reserves for certain inventories in the |
|
|
||
(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) |
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Three months ended |
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|
|
2022 |
|
|
2021 |
|
||||||||||||||||||
|
|
Pre-tax |
|
Tax expense
|
|
After-tax |
|
Pre-tax |
|
Tax expense
|
|
After-tax |
||||||||||||
|
|
(in millions) |
||||||||||||||||||||||
Net income (loss) from continuing operations |
|
$ |
13.6 |
|
|
$ |
5.7 |
|
|
$ |
7.9 |
|
|
$ |
(7.9 |
) |
|
$ |
(5.2 |
) |
|
$ |
(2.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic earnings (loss) per share - continuing operations |
|
|
|
|
|
$ |
0.06 |
|
|
|
|
|
|
$ |
(0.02 |
) |
||||||||
Diluted earnings (loss) per share - continuing operations |
|
|
|
|
|
$ |
0.06 |
|
|
|
|
|
|
$ |
(0.02 |
) |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss) from continuing operations |
|
$ |
13.6 |
|
|
$ |
5.7 |
|
|
$ |
7.9 |
|
|
$ |
(7.9 |
) |
|
$ |
(5.2 |
) |
|
$ |
(2.7 |
) |
Amortization of investment in affiliate step-up(b) |
|
|
1.6 |
|
|
|
0.4 |
|
|
|
1.2 |
|
|
|
1.7 |
|
|
|
0.6 |
|
|
|
1.1 |
|
Net loss on asset disposals(c) |
|
|
0.1 |
|
|
|
— |
|
|
|
0.1 |
|
|
|
0.8 |
|
|
|
0.2 |
|
|
|
0.6 |
|
Foreign currency exchange loss(d) |
|
|
0.6 |
|
|
|
0.1 |
|
|
|
0.5 |
|
|
|
5.1 |
|
|
|
1.4 |
|
|
|
3.7 |
|
LIFO expense (benefit)(e) |
|
|
0.2 |
|
|
|
0.1 |
|
|
|
0.1 |
|
|
|
(0.3 |
) |
|
|
(0.1 |
) |
|
|
(0.2 |
) |
Transaction and other related costs(f) |
|
|
4.3 |
|
|
|
1.0 |
|
|
|
3.3 |
|
|
|
0.5 |
|
|
|
0.1 |
|
|
|
0.4 |
|
Equity-based compensation(3) |
|
|
7.3 |
|
|
|
(0.3 |
) |
|
|
7.6 |
|
|
|
6.3 |
|
|
|
1.8 |
|
|
|
4.5 |
|
Restructuring, integration and business optimization expenses(h) |
|
|
0.4 |
|
|
|
0.1 |
|
|
|
0.3 |
|
|
|
2.3 |
|
|
|
0.7 |
|
|
|
1.6 |
|
Defined benefit plan pension benefit(i) |
|
|
(0.6 |
) |
|
|
(0.2 |
) |
|
|
(0.4 |
) |
|
|
(0.6 |
) |
|
|
(0.2 |
) |
|
|
(0.4 |
) |
Other(j) |
|
|
(0.4 |
) |
|
|
(0.1 |
) |
|
|
(0.3 |
) |
|
|
0.8 |
|
|
|
0.4 |
|
|
|
0.4 |
|
Adjusted Net Income, including Intraperiod allocation |
|
|
27.1 |
|
|
|
6.8 |
|
|
|
20.3 |
|
|
|
8.7 |
|
|
|
(0.3 |
) |
|
|
9.0 |
|
Intraperiod allocation for restating discontinued operations(2) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2.9 |
|
|
|
(2.9 |
) |
Adjusted Net Income(1) |
|
$ |
27.1 |
|
|
$ |
6.8 |
|
|
$ |
20.3 |
|
|
$ |
8.7 |
|
|
$ |
2.6 |
|
|
$ |
6.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Adjusted earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Adjusted basic earnings per share |
|
|
|
|
|
$ |
0.15 |
|
|
|
|
|
|
$ |
0.04 |
|
||||||||
Adjusted diluted earnings per share |
|
|
|
|
|
$ |
0.15 |
|
|
|
|
|
|
$ |
0.04 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic |
|
|
|
|
|
|
137,684,773 |
|
|
|
|
|
|
|
136,006,082 |
|
||||||||
Diluted |
|
|
|
|
|
|
138,749,065 |
|
|
|
|
|
|
|
136,006,082 |
|
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 |
|
|
||
(2) |
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. | |
|
||
(3) |
Includes tax adjustments for the shortfall in stock compensation. |
Appendix Table A-3: Sales and Adjusted EBITDA by Business Segment |
|||||||||||
|
|
Three months ended
|
|
|
|||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
% Change |
|
|
|
|
|||||||||
Sales: |
|
|
|
|
|
|
|||||
|
|
$ |
154.0 |
|
|
$ |
100.2 |
|
|
53.7 |
% |
Silica Catalysts |
|
|
25.7 |
|
|
|
26.4 |
|
|
(2.7 |
)% |
Total sales |
|
$ |
179.7 |
|
|
$ |
126.6 |
|
|
41.9 |
% |
|
|
|
|
|
|
|
|||||
|
|
$ |
29.0 |
|
|
$ |
29.0 |
|
|
0.1 |
% |
|
|
|
|
|
|
|
|||||
Adjusted EBITDA: |
|
|
|
|
|
|
|||||
|
|
$ |
49.3 |
|
|
$ |
33.0 |
|
|
49.4 |
% |
Catalyst Technologies |
|
|
17.0 |
|
|
|
18.5 |
|
|
(8.1 |
)% |
Unallocated corporate expenses |
|
|
(7.1 |
) |
|
|
(9.2 |
) |
|
(22.8 |
)% |
Total Adjusted EBITDA |
|
$ |
59.2 |
|
|
$ |
42.3 |
|
|
40.0 |
% |
|
|
|
|
|
|
|
|||||
Adjusted EBITDA Margin: |
|
|
|
|
|
|
|||||
|
|
|
32.0 |
% |
|
|
32.9 |
% |
|
|
|
Catalyst Technologies(1) |
|
|
31.1 |
% |
|
|
33.4 |
% |
|
|
|
Total Adjusted EBITDA Margin(1) |
|
|
28.4 |
% |
|
|
27.2 |
% |
|
|
|
(1) |
Adjusted EBITDA margin calculation includes proportionate |
Appendix Table A-4: Adjusted Free Cash Flow |
||||||||
|
|
Three months ended
|
||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
|
(in millions) |
||||||
Net cash provided by operating activities, continuing operations |
|
$ |
6.4 |
|
|
$ |
16.5 |
|
Net cash provided by operating activities, discontinued operations |
|
|
— |
|
|
|
0.9 |
|
Net cash provided by operating activities |
|
|
6.4 |
|
|
|
17.4 |
|
|
|
|
|
|
||||
Less: |
|
|
|
|
||||
Purchases of property, plant and equipment, continuing operations |
|
|
(10.8 |
) |
|
|
(12.6 |
) |
Purchases of property, plant and equipment, discontinued operations |
|
|
— |
|
|
|
(11.7 |
) |
Purchases of property, plant and equipment(1) |
|
|
(10.8 |
) |
|
|
(24.3 |
) |
|
|
|
|
|
||||
Free cash flow |
|
|
(4.4 |
) |
|
|
(6.9 |
) |
|
|
|
|
|
||||
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 |
|
|
13.6 |
|
|
|
7.0 |
|
Adjusted free cash flow(2) |
|
$ |
9.2 |
|
|
$ |
2.7 |
|
|
|
|
|
|
||||
Net cash used in investing activities(3) |
|
$ |
(14.4 |
) |
|
$ |
(76.6 |
) |
Net cash used in financing activities |
|
$ |
(2.6 |
) |
|
$ |
(2.0 |
) |
(1) |
Excludes the Company’s proportionate |
|
|
||
(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, 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. 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. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220428006046/en/
General Investor Inquiries:
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Source:
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