Ecovyst Reports Fourth Quarter and Full Year 2024 Results
Ecovyst (NYSE: ECVT) reported its Q4 and full-year 2024 results, with annual sales reaching $704.5 million, up from $691.1 million in 2023. The company posted a net loss of $6.7 million for 2024, with adjusted EBITDA of $238.2 million.
Q4 2024 sales were $182.0 million, a 5% increase from Q4 2023, though the company recorded a net loss of $30.5 million, including a $65 million non-cash impairment charge on Zeolyst Joint Venture investment. The Ecoservices segment showed growth with Q4 sales of $148.9 million, while Advanced Materials & Catalysts segment faced challenges.
For 2025, Ecovyst projects sales between $755-815 million, with adjusted EBITDA of $238-258 million. The company's Board has launched a strategic review of the Advanced Materials & Catalysts segment, expected to complete by mid-2025. Under its stock repurchase program, Ecovyst bought back 552,081 shares for $5.0 million in 2024.
Ecovyst (NYSE: ECVT) ha riportato i risultati del quarto trimestre e dell'intero anno 2024, con vendite annuali che hanno raggiunto 704,5 milioni di dollari, in aumento rispetto ai 691,1 milioni di dollari del 2023. L'azienda ha registrato una perdita netta di 6,7 milioni di dollari per il 2024, con un EBITDA rettificato di 238,2 milioni di dollari.
Le vendite del quarto trimestre 2024 sono state di 182,0 milioni di dollari, con un incremento del 5% rispetto al quarto trimestre 2023, sebbene l'azienda abbia registrato una perdita netta di 30,5 milioni di dollari, inclusa una svalutazione non monetaria di 65 milioni di dollari sull'investimento nella Joint Venture Zeolyst. Il segmento Ecoservices ha mostrato crescita con vendite nel quarto trimestre di 148,9 milioni di dollari, mentre il segmento Advanced Materials & Catalysts ha affrontato delle sfide.
Per il 2025, Ecovyst prevede vendite comprese tra 755-815 milioni di dollari, con un EBITDA rettificato di 238-258 milioni di dollari. Il Consiglio dell'azienda ha avviato una revisione strategica del segmento Advanced Materials & Catalysts, prevista per essere completata entro metà 2025. Sotto il programma di riacquisto di azioni, Ecovyst ha riacquistato 552.081 azioni per 5,0 milioni di dollari nel 2024.
Ecovyst (NYSE: ECVT) reportó sus resultados del cuarto trimestre y del año completo 2024, con ventas anuales alcanzando 704,5 millones de dólares, un aumento desde los 691,1 millones de dólares en 2023. La compañía registró una pérdida neta de 6,7 millones de dólares para 2024, con un EBITDA ajustado de 238,2 millones de dólares.
Las ventas del cuarto trimestre de 2024 fueron de 182,0 millones de dólares, un aumento del 5% respecto al cuarto trimestre de 2023, aunque la empresa registró una pérdida neta de 30,5 millones de dólares, incluyendo un cargo por deterioro no monetario de 65 millones de dólares en la inversión de la Joint Venture Zeolyst. El segmento de Ecoservices mostró crecimiento con ventas en el cuarto trimestre de 148,9 millones de dólares, mientras que el segmento de Advanced Materials & Catalysts enfrentó desafíos.
Para 2025, Ecovyst proyecta ventas entre 755-815 millones de dólares, con un EBITDA ajustado de 238-258 millones de dólares. La Junta de la compañía ha iniciado una revisión estratégica del segmento de Advanced Materials & Catalysts, que se espera completar a mediados de 2025. Bajo su programa de recompra de acciones, Ecovyst compró 552.081 acciones por 5,0 millones de dólares en 2024.
Ecovyst (NYSE: ECVT)는 2024년 4분기 및 연간 실적을 보고했으며, 연간 매출은 7억 4천 4백 5십만 달러에 달해 2023년의 6억 9천 1백 10만 달러에서 증가했습니다. 회사는 2024년에 670만 달러의 순손실을 기록했으며, 조정된 EBITDA는 2억 3천 8백 2십만 달러입니다.
2024년 4분기 매출은 1억 8천 2백만 달러로, 2023년 4분기 대비 5% 증가했으나 회사는 Zeolyst 합작 투자에 대한 6천 5백만 달러의 비현금 손상 차감과 함께 3천 5백만 달러의 순손실을 기록했습니다. Ecoservices 부문은 4분기 매출이 1억 4천 8백 9십만 달러로 성장하였으나, Advanced Materials & Catalysts 부문은 어려움을 겪었습니다.
2025년을 위해 Ecovyst는 매출을 7억 5천 5백만 - 8억 1천 5백만 달러로 예상하며, 조정된 EBITDA는 2억 3천 8백만 - 2억 5천 8백만 달러로 예상하고 있습니다. 회사의 이사회는 Advanced Materials & Catalysts 부문의 전략적 검토를 시작했으며, 2025년 중반까지 완료될 예정입니다. 자사주 매입 프로그램에 따라 Ecovyst는 2024년에 5백 5십 2만 8십 1주를 5백만 달러에 매입했습니다.
Ecovyst (NYSE: ECVT) a publié ses résultats du quatrième trimestre et de l'année complète 2024, avec des ventes annuelles atteignant 704,5 millions de dollars, en hausse par rapport à 691,1 millions de dollars en 2023. L'entreprise a affiché une perte nette de 6,7 millions de dollars pour 2024, avec un EBITDA ajusté de 238,2 millions de dollars.
Les ventes du quatrième trimestre 2024 se sont élevées à 182,0 millions de dollars, soit une augmentation de 5 % par rapport au quatrième trimestre 2023, bien que l'entreprise ait enregistré une perte nette de 30,5 millions de dollars, y compris une charge de dépréciation non monétaire de 65 millions de dollars sur l'investissement dans la coentreprise Zeolyst. Le segment Ecoservices a montré une croissance avec des ventes au quatrième trimestre de 148,9 millions de dollars, tandis que le segment Advanced Materials & Catalysts a rencontré des défis.
Pour 2025, Ecovyst prévoit des ventes comprises entre 755-815 millions de dollars, avec un EBITDA ajusté de 238-258 millions de dollars. Le conseil d'administration de l'entreprise a lancé un examen stratégique du segment Advanced Materials & Catalysts, qui devrait être terminé d'ici la mi-2025. Dans le cadre de son programme de rachat d'actions, Ecovyst a racheté 552 081 actions pour 5,0 millions de dollars en 2024.
Ecovyst (NYSE: ECVT) hat seine Ergebnisse für das vierte Quartal und das gesamte Jahr 2024 veröffentlicht, mit einem Jahresumsatz von 704,5 Millionen Dollar, ein Anstieg von 691,1 Millionen Dollar im Jahr 2023. Das Unternehmen verzeichnete einen Nettoverlust von 6,7 Millionen Dollar für 2024, mit einem bereinigten EBITDA von 238,2 Millionen Dollar.
Der Umsatz im vierten Quartal 2024 betrug 182,0 Millionen Dollar, was einem Anstieg von 5% im Vergleich zum vierten Quartal 2023 entspricht, obwohl das Unternehmen einen Nettoverlust von 30,5 Millionen Dollar verzeichnete, einschließlich einer nicht zahlungswirksamen Wertminderung von 65 Millionen Dollar auf die Investition in das Joint Venture Zeolyst. Der Ecoservices-Sektor zeigte Wachstum mit einem Umsatz im vierten Quartal von 148,9 Millionen Dollar, während der Sektor Advanced Materials & Catalysts Herausforderungen gegenüberstand.
Für 2025 prognostiziert Ecovyst einen Umsatz zwischen 755-815 Millionen Dollar, mit einem bereinigten EBITDA von 238-258 Millionen Dollar. Der Vorstand des Unternehmens hat eine strategische Überprüfung des Sektors Advanced Materials & Catalysts eingeleitet, die voraussichtlich bis Mitte 2025 abgeschlossen sein wird. Im Rahmen seines Aktienrückkaufprogramms hat Ecovyst im Jahr 2024 552.081 Aktien für 5,0 Millionen Dollar zurückgekauft.
- Q4 sales increased 5% year-over-year to $182.0 million
- Ecoservices Q4 Adjusted EBITDA up 11.6% to $54.0 million
- Full year operating cash flow improved to $149.9 million from $137.6 million
- Strong liquidity position with $221.2 million available
- Full year net loss of $6.7 million vs prior year profit
- Q4 net loss of $30.5 million vs $30.0 million profit in Q4 2023
- $65 million impairment charge on Zeolyst Joint Venture
- Net debt leverage ratio increased to 3.0x
- Zeolyst JV sales declined to $116.5 million from $156.5 million
Insights
Ecovyst's Q4 2024 results reveal a company navigating sector-specific headwinds while maintaining operational resilience in core segments. The $182.0 million in quarterly revenue (up 5% YoY) demonstrates modest growth, but the $30.5 million net loss requires deeper examination.
The $65 million non-cash impairment charge on the Zeolyst Joint Venture investment is particularly significant, as it reflects fundamental changes in demand outlook for emission control catalysts and sustainable fuels applications. This suggests structural challenges in these markets rather than cyclical weakness, potentially requiring strategic repositioning.
The segment performance divergence is telling: Ecoservices delivered strong results with $54.0 million Adjusted EBITDA (up
The company's balance sheet shows $146.0 million in cash against $870.8 million in gross debt, maintaining a 3.0x net leverage ratio. Despite this leverage, management has been conservative with share repurchases, utilizing only $5.0 million of their $450 million authorization in 2024, suggesting prioritization of financial flexibility.
The $80-90 million capital expenditure guidance for 2025 significantly exceeds depreciation, with investments focused on polyethylene catalyst production expansion in Kansas City and Chem32 capacity growth. These investments align with management's strategic positioning toward growth markets including advanced plastics recycling, carbon capture, and bio-catalysis - areas with favorable regulatory and sustainability tailwinds.
The 2025 guidance of $755-815 million in sales and $238-258 million in Adjusted EBITDA reflects cautious optimism, with projected growth primarily in regeneration services, mining/industrial applications for virgin sulfuric acid, and moderate increases in hydrocracking catalysts through their MACH offering.
Full Year 2024 Results & Highlights
- Sales of
$704.5 million $691.1 million - Net loss of
$6.7 million 1.0% , with diluted net loss per share of$0.06 - Adjusted net income of
$68.6 million $0.58 - Adjusted EBITDA of
$238.2 million 29.0% - Full year net cash from operations of
$149.9 million $85.5 million - Full year share repurchases of 552,081 shares or
$5.0 million
Fourth Quarter 2024 Results & Highlights
- Sales of
$182.0 million $172.8 million - Net loss of
$30.5 million $30.0 million 16.8% and with diluted net loss per share of$0.26 - Adjusted net income of
$33.0 million $0.28 - Adjusted EBITDA of
$75.9 million 8.7% compared to the fourth quarter of 2023, with an Adjusted EBITDA margin of35.3%
"Ecovyst delivered solid results for the fourth quarter of 2024, demonstrating the resilience of our core and industrial businesses in the face of continued demand softness in the global macroeconomic environment. As a result, we delivered financial results consistent with our expectations," said Kurt J. Bitting, Ecovyst's Chief Executive Officer. "Increased sales volume and positive pricing in our Ecoservices segment translated into Adjusted EBITDA of
"We are pleased with the progress we made on our strategic and operational priorities during 2024. Looking to the future, we continued to position Ecovyst to capitalize on the growth potential for advanced plastics recycling, carbon capture and bio-catalysis. In addition, our investments in reliability initiatives in Ecoservices have already resulted in a significant improvement in operational efficiency, contributing to volume growth in 2024. We remain on track to complete the expansion of our polyethylene catalyst production capacity at our
Review of Segment Results and Business Trends
For the fourth quarter, sales were
Ecoservices
Fourth quarter 2024 sales for Ecoservices were
For the year, sales were
Advanced Materials & Catalysts
During the fourth quarter of 2024, Advanced Silicas sales were
For the year, Advanced Silicas sales were
Cash Flows and Balance Sheet
Cash flows from operating activities was
2025 Financial Outlook
We remain cautious about the near-term outlook for global macroeconomic activity. However, we expect demand for our regeneration services business will remain positive in 2025, and we expect favorable demand for virgin sulfuric acid sales into mining and industrial applications and continued demand growth in catalyst activation for Chem32. While our longer-term outlook for polyethylene catalyst sales remains positive, supported by customer commitments for the ongoing expansion of polyethylene production capacity at our
The Company's guidance for full year 2025 is as follows:
- Sales of
$755 million $815 million - Sales of
$115 million $130 million 50% share of Zeolyst Joint Venture, which is excluded from GAAP Sales - Adjusted EBITDA2 of
$238 million $258 million - Adjusted Free Cash Flow2 of
$60 million $80 million - Capital expenditures of
$80 million $90 million - Interest expense of
$47 million $53 million - Depreciation & Amortization
- Ecovyst -
$87 million $93 million - Zeolyst J.V. -
$12 million $14 million
- Ecovyst -
- Effective tax rate in the mid
20% range - Adjusted Net Income2 of
$58 million $85 million $0.50 $0.70
1 | Sales outlook for 2025 assumes higher average sulfur prices compared to 2024 and higher projected pass-through of sulfur costs of approximately |
2 | In 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 net cash provided by operating activities 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. |
In December 2024, the Company announced that its Board of Directors has launched a strategic review of our Advanced Materials & Catalysts segment with the goal of maximizing long-term stockholder value. The review remains underway and the Company expects to complete it in mid-2025. The strategic review process is subject to unknown variables including the costs, structure, terms and timing thereof, and the strategic review process may not result in any transaction or other outcome. The Company does not intend to make any further public comment regarding the strategic review until it has been completed or the Company determines that disclosure is required or beneficial.
Stock Repurchase Authorization
In April 2022, the Company's Board of Directors approved a stock repurchase program authorizing the repurchase of up to
During the quarter ended December 31, 2024 the Company did not repurchase any of its common stock. During the year ended December 31, 2024, the Company repurchased 552,081 shares of its common stock on the open market at an average price of
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 and may be conducted through negotiated transactions, open market repurchases or other means, including through Rule 10b-18 trading plans or accelerated share repurchases. 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.
Conference Call and Webcast Details
On Thursday, February 27, 2025, 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) 267-6316 (domestic) or 1 (203) 518-9783 (international) and use the participant code ECVTQ424.
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.
Investor Contact:
Gene Shiels
(484) 617-1225
gene.shiels@ecovyst.com
About Ecovyst Inc.
Ecovyst Inc. and subsidiaries is a leading integrated and innovative global provider of advanced materials, specialty catalysts and services. We support customers globally through our strategically located network of manufacturing facilities. We believe that our products 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 high quality and high strength virgin sulfuric acid for industrial and mining applications. Ecoservices also provides chemical waste handling and treatment services, as well as ex-situ catalyst activation services for the refining and petrochemical industry. Advanced Materials & Catalysts, through its Advanced Silicas business, provides finished silica catalysts, catalyst supports and functionalized silicas necessary to produce high performing plastics and to enable sustainable chemistry, and through its Zeolyst Joint Venture, innovates and supplies specialty zeolites used in catalysts that support the production of sustainable fuels, remove nitrogen oxides from diesel engine emissions and that are broadly applied in refining and petrochemical 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
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, capital expenditure projects, liquidity, prospects, growth, strategies, capital allocation program (including the stock repurchase program), product and service offerings, expected demand trends, the timing and outcome, if any, of the Company's strategic review process for its Advanced Materials & Catalysts segment and our 2025 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 (LOSS) INCOME (in millions, except share and per share amounts)
| ||||||||||||
Three months ended December 31, | % | Years ended December 31, | % | |||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | |||||||
Sales | $ 182.0 | $ 172.8 | 5.3 % | $ 704.5 | $ 691.1 | 1.9 % | ||||||
Cost of goods sold | 128.1 | 125.5 | 2.1 % | 503.0 | 493.2 | 2.0 % | ||||||
Gross profit | 53.9 | 47.3 | 14.0 % | 201.5 | 197.9 | 1.8 % | ||||||
Selling, general and administrative expenses | 19.6 | 19.7 | (0.5) % | 83.9 | 79.2 | 5.9 % | ||||||
Other operating expense, net | 9.7 | 4.8 | 102.1 % | 19.6 | 22.0 | (10.9) % | ||||||
Operating income | 24.6 | 22.8 | 7.9 % | 98.0 | 96.7 | 1.3 % | ||||||
Equity in net (income) from affiliated companies | (12.6) | (14.3) | (11.9) % | (15.1) | (30.6) | (50.7) % | ||||||
Impairment of investment in affiliated companies | 65.0 | — | NM | 65.0 | — | NM | ||||||
Interest expense, net | 11.8 | 13.9 | (15.1) % | 49.4 | 44.7 | 10.5 % | ||||||
Debt extinguishment costs | — | — | — % | 4.6 | — | NM | ||||||
Other (income) expense, net | (1.9) | — | NM | (0.8) | 0.6 | (233.3) % | ||||||
(Loss) income before income taxes | (37.7) | 23.2 | (262.5) % | (5.1) | 82.0 | (106.2) % | ||||||
(Benefit) provision for income taxes | (7.2) | (6.8) | 5.9 % | 1.6 | 10.8 | (85.2) % | ||||||
Effective tax rate | 19.1 % | (29.3) % | (32.5) % | 13.2 % | ||||||||
Net (loss) income | $ (30.5) | $ 30.0 | (201.7) % | $ (6.7) | $ 71.2 | (109.4) % | ||||||
Earnings per share: | ||||||||||||
Basic (loss) earnings per share | $ (0.26) | $ 0.26 | $ (0.06) | $ 0.60 | ||||||||
Diluted (loss) earnings per share | $ (0.26) | $ 0.26 | $ (0.06) | $ 0.60 | ||||||||
Weighted average shares outstanding: | ||||||||||||
Basic | 116,518,933 | 116,116,895 | 116,719,437 | 118,367,214 | ||||||||
Diluted | 116,518,933 | 117,190,747 | 116,719,437 | 119,487,709 | ||||||||
ECOVYST INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in millions, except share and per share amounts)
| |||
December 31, | |||
2024 | 2023 | ||
ASSETS | |||
Cash and cash equivalents | $ 146.0 | $ 88.4 | |
Accounts receivable, net | 77.9 | 81.3 | |
Inventories, net | 57.1 | 45.1 | |
Derivative assets | 6.5 | 13.4 | |
Prepaid and other current assets | 16.1 | 17.8 | |
Total current assets | 303.6 | 246.0 | |
Investments in affiliated companies | 349.3 | 440.2 | |
Property, plant and equipment, net | 569.3 | 576.9 | |
Goodwill | 404.1 | 404.5 | |
Other intangible assets, net | 98.4 | 116.6 | |
Right-of-use lease assets | 33.6 | 24.3 | |
Other long-term assets | 44.0 | 29.3 | |
Total assets | $ 1,802.3 | $ 1,837.8 | |
LIABILITIES | |||
Current maturities of long-term debt | $ 8.7 | $ 9.0 | |
Accounts payable | 43.9 | 40.2 | |
Operating lease liabilities—current | 9.3 | 8.2 | |
Accrued liabilities | 53.2 | 61.7 | |
Total current liabilities | 115.1 | 119.1 | |
Long-term debt, excluding current portion | 852.1 | 858.9 | |
Deferred income taxes | 105.4 | 115.8 | |
Operating lease liabilities—noncurrent | 24.2 | 16.0 | |
Other long-term liabilities | 5.0 | 22.5 | |
Total liabilities | 1,101.8 | 1,132.3 | |
Commitments and contingencies | |||
EQUITY | |||
Common stock ( | 1.4 | 1.4 | |
Preferred stock ( | — | — | |
Additional paid-in capital | 1,106.8 | 1,102.6 | |
Accumulated deficit | (177.5) | (170.9) | |
Treasury stock, at cost; shares 24,338,043 and 24,627,150 on December 31, 2024 and 2023, respectively | (222.8) | (226.7) | |
Accumulated other comprehensive loss | (7.4) | (0.9) | |
Total equity | 700.5 | 705.5 | |
Total liabilities and equity | $ 1,802.3 | $ 1,837.8 | |
ECOVYST INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS
| ||||
Years ended December 31, | ||||
2024 | 2023 | |||
Cash flows from operating activities: | (in millions) | |||
Net (loss) income | $ (6.7) | $ 71.2 | ||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||
Depreciation | 75.3 | 70.6 | ||
Amortization | 14.1 | 14.0 | ||
Intangible asset impairment charge | 3.9 | — | ||
Amortization of deferred financing costs and original issue discount | 1.7 | 2.1 | ||
Debt extinguishment costs | 0.1 | — | ||
Foreign currency exchange loss (gain) | 0.3 | (0.6) | ||
Deferred income tax benefit | (7.9) | (17.1) | ||
Net loss on asset disposals | 2.4 | 4.1 | ||
Stock compensation | 14.0 | 16.0 | ||
Equity in net (income) from affiliated companies | (15.1) | (30.6) | ||
Dividends received from affiliated companies | 38.0 | 28.0 | ||
Impairment of investment in affiliated companies | 65.0 | — | ||
Other, net | (14.3) | 0.6 | ||
Working capital changes that provided (used) cash: | ||||
Receivables | 3.1 | (6.1) | ||
Inventories | (11.2) | (1.4) | ||
Prepaids and other current assets | 3.4 | (1.0) | ||
Accounts payable | 2.4 | 2.4 | ||
Accrued liabilities | (18.6) | (14.6) | ||
Net cash provided by operating activities | 149.9 | 137.6 | ||
Cash flows from investing activities: | ||||
Purchases of property, plant and equipment | (69.0) | (65.3) | ||
Investment in non-marketable equity securities | (4.5) | — | ||
Net cash used in investing activities | (73.5) | (65.3) | ||
Cash flows from financing activities: | ||||
Draw down of revolving credit facilities | — | 14.5 | ||
Repayments of revolving credit facilities | — | (14.5) | ||
Issuance of long-term debt, net of original issue discount and financing fees | 870.8 | — | ||
Repayments of long-term debt | (879.7) | (9.0) | ||
Repurchases of common shares | (5.0) | (78.7) | ||
Tax withholdings on equity award vesting | (1.2) | (3.4) | ||
Repayments of financing obligation | (3.0) | (2.8) | ||
Other, net | 0.2 | 0.4 | ||
Net cash used in financing activities | (17.9) | (93.5) | ||
Effect of exchange rate changes on cash and cash equivalents | (0.9) | (1.3) | ||
Net change in cash and cash equivalents | 57.6 | (22.5) | ||
Cash and cash equivalents at beginning of period | 88.4 | 110.9 | ||
Cash and cash equivalents at end of period | $ 146.0 | $ 88.4 | ||
Appendix Table A-1: Reconciliation of Net (Loss) Income to Adjusted EBITDA
| ||||||||
Three months ended December 31, | Years ended December 31, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
(in millions) | ||||||||
Reconciliation of net (loss) income to Adjusted EBITDA | ||||||||
Net (loss) income | $ (30.5) | $ 30.0 | $ (6.7) | $ 71.2 | ||||
(Benefit) provision for income taxes | (7.2) | (6.8) | 1.6 | 10.8 | ||||
Interest expense, net | 11.8 | 13.9 | 49.4 | 44.7 | ||||
Depreciation and amortization | 22.6 | 22.1 | 89.4 | 84.6 | ||||
EBITDA | (3.3) | 59.2 | 133.7 | 211.3 | ||||
Joint venture depreciation, amortization and interest(a) | 3.2 | 3.3 | 13.3 | 13.4 | ||||
Amortization of investment in affiliate step-up(b) | 0.6 | 1.6 | 3.8 | 6.4 | ||||
Impairment of investment in affiliated companies(c) | 65.0 | — | 65.0 | — | ||||
Intangible asset impairment charge | 3.9 | — | 3.9 | — | ||||
Debt extinguishment costs | — | — | 4.6 | — | ||||
Net loss on asset disposals(d) | 1.6 | 0.8 | 2.4 | 4.1 | ||||
Foreign currency exchange gain(e) | (0.3) | (0.9) | (0.2) | (1.3) | ||||
LIFO expense (benefit)(f) | 1.0 | 1.0 | (2.2) | 3.5 | ||||
Transaction and other related costs(g) | 0.2 | 0.2 | 0.4 | 3.0 | ||||
Equity-based compensation | 3.5 | 3.4 | 14.0 | 16.0 | ||||
Restructuring, integration and business optimization expenses(h) | 0.1 | 0.3 | 1.0 | 2.7 | ||||
Other(i) | 0.4 | 0.9 | (1.5) | 0.8 | ||||
Adjusted EBITDA | $ 75.9 | $ 69.8 | $ 238.2 | $ 259.9 | ||||
Descriptions to Ecovyst Non-GAAP Reconciliations | |
(a) | We use Adjusted EBITDA as a performance measure to evaluate our financial results. Because our Advanced Materials & Catalysts segment reflects 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 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 intangible assets, including customer relationships and technical know-how. |
(c) | Represents fair value impairments associated with the equity affiliate investment in the Zeolyst Joint Venture. During the year ended December 31, 2024, we recognized an impairment charge on our investment in the Zeolyst Joint Venture to reduce the carrying value of our investment to its estimated fair value. This impairment was a partial reduction to the goodwill and trade name components of the purchase accounting fair value adjustments recorded as a result of the combination of the businesses of PQ Holdings Inc. and Eco Services Operations LLC in May 2016. |
(d) | 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. |
(e) | Reflects the exclusion of the foreign currency transaction gains and losses in the statements of income related to the remeasurement effects of monetary assets and liabilities, including non-permanent intercompany debt, denominated in foreign currency. |
(f) | Represents non-cash adjustments to the Company's LIFO reserves for certain inventories in the |
(g) | 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. |
(h) | Includes the impact of restructuring, integration and business optimization expenses, which are incremental costs that are not representative of our ongoing business operations. |
(i) | 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 December 31, | |||||||||||
2024 | 2023 | ||||||||||
Pre-tax | Tax | After- | Per share, | Per share, | Pre-tax | Tax | After- | Per share, | Per share, | ||
(in millions, except share and per share amounts) | |||||||||||
Net (loss) income | $ (37.7) | $ (7.2) | $ (30.5) | $ (0.26) | $ (0.26) | $ 23.2 | $ (6.8) | $ 30.0 | $ 0.26 | $ 0.26 | |
Amortization of investment in affiliate step-up(b) | 0.6 | 0.1 | 0.5 | — | — | 1.6 | 0.3 | 1.3 | 0.01 | 0.01 | |
Impairment of investment in affiliated companies(c) | 65.0 | 0.5 | 64.5 | 0.55 | 0.55 | — | — | — | — | — | |
Intangible asset impairment charge | 3.9 | 1.0 | 2.9 | 0.02 | 0.02 | — | — | — | — | — | |
Net loss on asset disposals(d) | 1.6 | 0.5 | 1.1 | 0.01 | 0.01 | 0.8 | 0.1 | 0.7 | 0.01 | 0.01 | |
Foreign currency exchange gain(e) | (0.3) | (0.1) | (0.2) | — | — | (0.9) | (0.2) | (0.7) | (0.01) | (0.01) | |
LIFO expense(f) | 1.0 | 0.2 | 0.8 | 0.01 | 0.01 | 1.0 | 0.2 | 0.8 | 0.01 | 0.01 | |
Transaction and other related costs(g) | 0.2 | — | 0.2 | — | — | 0.2 | — | 0.2 | — | — | |
Equity-based compensation | 3.5 | 0.8 | 2.7 | 0.02 | 0.02 | 3.4 | 0.3 | 3.1 | 0.03 | 0.03 | |
Restructuring, integration and business optimization expenses(h) | 0.1 | — | 0.1 | — | — | 0.3 | 0.1 | 0.2 | — | — | |
Other(i) | 0.4 | 0.1 | 0.3 | 0.01 | 0.01 | 0.9 | 0.2 | 0.7 | — | — | |
Adjusted Net Income, including impact of valuation allowance release and changes in uncertain tax positions release | 38.3 | (4.1) | 42.4 | 0.36 | 0.36 | 30.5 | (5.8) | 36.3 | 0.31 | 0.31 | |
Impact of valuation allowance release(2) | — | — | — | — | — | — | 10.2 | (10.2) | (0.09) | (0.09) | |
Changes in uncertain tax positions release(3) | — | 9.4 | (9.4) | (0.08) | (0.08) | — | — | — | — | — | |
Adjusted Net Income(1) | $ 38.3 | $ 5.3 | $ 33.0 | $ 0.28 | $ 0.28 | $ 30.5 | $ 4.4 | $ 26.1 | $ 0.22 | $ 0.22 | |
Weighted average shares outstanding | 116,518,933 | 117,515,453 | 116,116,895 | 117,190,747 | |||||||
Years ended December 31, | |||||||||||
2024 | 2023 | ||||||||||
Pre-tax | Tax | After- | Per share, | Per share, | Pre-tax | Tax | After- | Per share, | Per share, | ||
(in millions, except share and per share amounts) | |||||||||||
Net (loss) income | $ (5.1) | $ 1.6 | $ (6.7) | $ (0.06) | $ (0.06) | $ 82.0 | $ 10.8 | $ 71.2 | $ 0.60 | $ 0.60 | |
Amortization of investment in affiliate step-up(b) | 3.8 | 1.0 | 2.8 | 0.02 | 0.02 | 6.4 | 1.6 | 4.8 | 0.04 | 0.04 | |
Impairment of investment in affiliated companies(c) | 65.0 | 0.5 | 64.5 | 0.55 | 0.55 | — | — | — | — | — | |
Intangible asset impairment charge | 3.9 | 1.0 | 2.9 | 0.02 | 0.02 | — | — | — | — | — | |
Debt extinguishment costs | 4.6 | 1.2 | 3.4 | 0.03 | 0.03 | — | — | — | — | — | |
Net loss on asset disposals(d) | 2.4 | 0.6 | 1.8 | 0.02 | 0.01 | 4.1 | 1.0 | 3.1 | 0.03 | 0.03 | |
Foreign currency exchange gain(e) | (0.2) | (0.1) | (0.1) | — | — | (1.3) | (0.3) | (1.0) | (0.01) | (0.01) | |
LIFO (benefit) expense(f) | (2.2) | (0.6) | (1.6) | (0.01) | (0.01) | 3.5 | 0.9 | 2.6 | 0.02 | 0.02 | |
Transaction and other related costs(g) | 0.4 | 0.1 | 0.3 | — | — | 3.0 | 0.8 | 2.2 | 0.02 | 0.02 | |
Equity-based compensation | 14.0 | 3.0 | 11.0 | 0.09 | 0.09 | 16.0 | 1.5 | 14.5 | 0.12 | 0.12 | |
Restructuring, integration and business optimization expenses(h) | 1.0 | 0.3 | 0.7 | 0.01 | 0.01 | 2.7 | 0.7 | 2.0 | 0.02 | 0.02 | |
Other(i) | (1.5) | (0.5) | (1.0) | — | — | 0.8 | 0.2 | 0.6 | 0.01 | — | |
Adjusted Net Income, including impact of valuation allowance release and changes in uncertain tax positions release | 86.1 | 8.1 | 78.0 | 0.67 | 0.66 | 117.2 | 17.2 | 100.0 | 0.85 | 0.84 | |
Impact of valuation allowance release(2) | — | — | — | — | — | — | 10.2 | (10.2) | (0.09) | (0.09) | |
Changes in uncertain tax positions release(3) | — | 9.4 | (9.4) | (0.08) | (0.08) | — | — | — | — | — | |
Adjusted Net Income(1) | $ 86.1 | $ 17.5 | $ 68.6 | $ 0.59 | $ 0.58 | $ 117.2 | $ 27.4 | $ 89.8 | $ 0.76 | $ 0.75 | |
Weighted average shares outstanding | 116,719,437 | 117,447,438 | 118,367,214 | 119,487,709 | |||||||
See Appendix Table A-1 for Descriptions to Ecovyst Non-GAAP Reconciliations in the table above. | |
(1) | We define Adjusted Net Income as net (loss) income adjusted for non-operating income or expense and the impact of certain non-cash or other items that are included in net (loss) 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 (loss) income or Adjusted Net Income as defined by other companies. |
(2) | Represents the tax impact of the state tax credit valuation allowance release. Item is not expected to be recurring. |
(3) | Represents the tax impact of previously net unrecognized tax benefits, excluding interest and penalties, primarily due to the expiration of statutes of limitations. |
The adjustments to net income are shown net of applicable tax rates of
Appendix Table A-3: Sales and Adjusted EBITDA by Business Segment
| ||||||||||||
Three months ended December 31, | Years ended December 31, | |||||||||||
2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||
Sales: | ||||||||||||
Ecoservices | $ 148.9 | $ 141.4 | 5.3 % | $ 598.3 | $ 584.8 | 2.3 % | ||||||
Advanced Materials & Catalysts(1) | 33.1 | 31.4 | 5.4 % | 106.2 | 106.3 | (0.1) % | ||||||
Total sales | $ 182.0 | $ 172.8 | 5.3 % | $ 704.5 | $ 691.1 | 1.9 % | ||||||
Zeolyst Joint Venture sales | $ 33.1 | $ 52.8 | (37.3) % | $ 116.5 | $ 156.5 | (25.6) % | ||||||
Adjusted EBITDA: | ||||||||||||
Ecoservices | $ 54.0 | $ 48.4 | 11.6 % | $ 200.3 | $ 200.0 | 0.2 % | ||||||
Advanced Materials & Catalysts | 27.9 | 27.2 | 2.6 % | 64.7 | 81.9 | (21.0) % | ||||||
Unallocated corporate expenses | (6.0) | (5.8) | 3.4 % | (26.8) | (22.0) | 21.8 % | ||||||
Total Adjusted EBITDA | $ 75.9 | $ 69.8 | 8.7 % | $ 238.2 | $ 259.9 | (8.3) % | ||||||
Adjusted EBITDA Margin: | ||||||||||||
Ecoservices | 36.3 % | 34.2 % | 33.5 % | 34.2 % | ||||||||
Advanced Materials & Catalysts(2) | 42.1 % | 32.3 % | 29.1 % | 31.2 % | ||||||||
Total Adjusted EBITDA Margin(2) | 35.3 % | 30.9 % | 29.0 % | 30.7 % | ||||||||
(1) | Represents GAAP sales for the Advanced Silicas business; Excludes our proportionate |
(2) | Adjusted EBITDA Margin calculation reflects our proportionate |
Appendix Table A-4: Adjusted Free Cash Flow
| ||||
Years ended December 31, | ||||
2024 | 2023 | |||
(in millions) | ||||
Net cash provided by operating activities | $ 149.9 | $ 137.6 | ||
Less: | ||||
Purchases of property, plant and equipment(1) | (69.0) | (65.3) | ||
Free Cash Flow(2) | $ 80.9 | $ 72.3 | ||
Adjustments to Free Cash Flow: | ||||
Cash paid for debt financing costs included in cash from operating activities | 4.6 | — | ||
Adjusted Free Cash Flow(2) | $ 85.5 | $ 72.3 | ||
Net cash used in investing activities(3) | $ (73.5) | $ (65.3) | ||
Net cash used in financing activities | $ (17.9) | $ (93.5) | ||
(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 cash flows that are unusual in nature and/or infrequent in occurrence that neither relate to our core business nor reflect the liquidity of our underlying business. Historically these adjustments include proceeds from the 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, which is also included in our computation of Adjusted Free Cash Flow. |
Appendix Table A-5: Net Debt Leverage Ratio
| |||
December 31, | |||
2024 | 2023 | ||
(in millions, except ratios) | |||
Total debt | $ 870.8 | $ 877.5 | |
Less: | |||
Cash and cash equivalents | 146.0 | 88.4 | |
Net debt | $ 724.8 | $ 789.1 | |
Net (loss) income | $ (6.7) | $ 71.2 | |
Adjusted EBITDA(1) | $ 238.2 | $ 259.9 | |
Net Debt to Net Income Ratio | NM | 11.1x | |
Net Debt Leverage Ratio | 3.0x | 3.0x | |
(1) | Refer to Appendix Table A-1: Reconciliation of Net Income to Adjusted EBITDA for the reconciliation to the most comparable GAAP financial measure. |
View original content to download multimedia:https://www.prnewswire.com/news-releases/ecovyst-reports-fourth-quarter-and-full-year-2024-results-302386751.html
SOURCE Ecovyst Inc.
FAQ
What are Ecovyst's (ECVT) revenue projections for 2025?
How much did ECVT spend on share repurchases in 2024?
What caused Ecovyst's Q4 2024 net loss?
What is the status of ECVT's Advanced Materials & Catalysts segment review?
How did Ecovyst's Ecoservices segment perform in Q4 2024?
