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.
Full Year 2023 Results & Highlights
- Sales of $691.1 million, compared
to $820.2 million in 2022. The change
is primarily due to the pass through of lower sulfur costs of
$86 million, and lower sales volume.
Sales volume was negatively impacted by Winter Storm Elliott, extended turnaround
activity as well as lower end use demand and destocking in nylon
intermediates for virgin sulfuric acid and polyethylene
catalysts.
- Net income from continuing operations of $71.2 million. Net income margin of 10.3%, with
diluted income per share of $0.60.
- Adjusted net income of $89.8
million, with Adjusted diluted income per share of
$0.75.
- Adjusted EBITDA of $259.9
million, with an Adjusted EBITDA margin of 30.7%.
- Full year net cash from operations of $137.6 million, Adjusted Free Cash Flow of
$72.3 million, with net debt to net
income ratio of 11.1x, and a net debt leverage ratio of 3.0x.
- Full year share repurchases of 7,541,494 shares or $78.7 million. Excluding cash used for share
repurchases in 2023, the net debt leverage ratio would have been
2.7x.
- Achieved a Platinum sustainability rating from EcoVadis,
placing Ecovyst in the top one percent of all companies rated in
our peer group
Fourth Quarter 2023 Results & Highlights
- Sales of $172.8 million, compared
to $182.8 million in the fourth
quarter of 2022, the decrease reflecting the price pass-through of
lower sulfur costs of approximately $9
million.
- Net income from continuing operations of $30.0 million. Net income margin of 17.4%,
with diluted income per share of $0.26.
- Adjusted net income of $26.1
million with Adjusted diluted income per share of
$0.22.
- Adjusted EBITDA of $69.8 million,
up 0.9% period-over-period with an Adjusted EBITDA margin of
30.9%.
Ecovyst results reflect continuing operations for the
Ecoservices and Advanced Materials & Catalysts businesses,
renamed from Refining Services and Catalysts Technologies,
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.
"Despite the ongoing uncertainty in the macro-economic
environment, stability in demand fundamentals for both our
Ecoservices and Advanced Materials & Catalysts segments, in
combination with Ecovyst's diverse end use exposures, contributed
to our solid financial results for the fourth quarter of 2023.
Ecovyst's Adjusted EBITDA of $70
million was up 1% compared to the fourth quarter of 2022,
and cash generation remained favorable in the fourth quarter,
providing for a reduction in our net debt leverage ratio to 3.0x at
year-end," said Kurt J. Bitting,
Ecovyst's Chief Executive Officer. "In 2023, we continued to
advance our strategic objectives, positioning Ecovyst for growth as
we continue to provide our customers with products and technologies
that we believe are essential in meeting the increasing demand for
cleaner-burning and sustainable fuels, advanced recycling
technologies, and expansion of low-carbon technologies. Examples of
key strategic projects in 2023 to support this growth include the
previously announced planned expansion of silica catalyst
production capacity at our Kansas City,
Kansas facility, our first sales of Advanced Silicas for
fast growing bio-catalysis applications, and the planned
investments at our Chem32 facility which we anticipate will improve
performance and enable future expansions."
Fourth Quarter and Full Year 2023 Results
For the year, sales were $691.1
million compared to $820.2
million in 2022. The year-over-year change was primarily a
result of $86 million associated with
the pass-through of lower sulfur costs. In addition, sales of
virgin sulfuric acid were lower compared to the prior year, along
with lower demand for polyethylene catalysts and the timing of
niche custom catalyst sales. This was partially offset by higher
average selling prices during the year. Net income from continuing
operations was $71.2 million, with
diluted income per share of $0.60.
The increase in net income was driven by lower income taxes,
partially offset by lower operating income and higher interest
expense. Adjusted net income was $89.8
million with Adjusted diluted income per share of
$0.75. Adjusted EBITDA was
$259.9 million, compared to
$276.8 million in 2022, the change
driven primarily by lower sales volume.
Sales for the quarter ended December 31,
2023 were $172.8 million,
compared to $182.8 million in the
fourth quarter of 2022. The change was driven by $9.0 million associated with the pass-through of
lower sulfur costs and lower pricing in regeneration services
associated with the pass-through of lower natural gas and freight
costs, partially offset by higher sales volume. Net income from
continuing operations was $30.0
million, an increase of $8.5 million or 40% over the
same period in 2022, with diluted income per share of $0.26. The increase in net income over the prior
period was driven by higher operating income, additional equity in
net income from affiliates and lower income taxes. Adjusted net
income was $26.1 million with
Adjusted diluted income per share of $0.22. Adjusted EBITDA was $69.8 million, an increase of $0.6 million or 0.9% over the same period in
2022, driven primarily by higher sales volume.
Review of Segment Results and Business Trends
While demand across the majority of product categories and end
uses remained positive in 2023, during the second half of the year
we saw weaker demand for sales of virgin sulfuric acid into the
production of nylon intermediates and for sales of polyethylene
catalysts, resulting from weaker global demand fundamentals and the
impact of destocking. Our contractual pass-through mechanisms and
targeted price increases served to mitigate the adverse impacts of
inflationary pressures in 2023, including higher costs for energy,
logistics, labor and other raw materials.
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 gasoline standards and increasing demand for
higher-octane premium fuels used in high compression, more
fuel-efficient engines resulted in higher utilization for our
customers' alkylation units. High U.S. refinery utilization
throughout 2023 supported our customers' production of alkylate and
translated into strong demand for our regeneration services. We
expect refinery utilization to remain high into 2024. Ecoservices
is a leading producer of virgin sulfuric acid, which is a widely
used chemical that plays a key role in the production of a wide
array of materials, particularly those supporting sustainable
infrastructure. In 2024 we expect our virgin sulfuric acid sales to
benefit from mining activity for metals and minerals that provide
conductivity in low carbon technologies, and we anticipate a
moderate recovery in the nylon intermediate applications that we
serve. Our catalyst activation services provide for ex-situ
sulfiding and pre-activation for hydro-processing catalysts, with
expected demand growth in both traditional and sustainable fuel
production. In addition, we believe sustainability trends will
continue to translate into favorable demand for our treatment
services business as customers seek the sustainability-focused
waste solutions offered by Ecoservices.
Fourth quarter 2023 sales for Ecoservices were $141.4 million, compared to $159.8 million in the fourth quarter of 2022. The
change in sales primarily reflects the pass-through of lower sulfur
costs of $9 million and lower pricing
in regeneration services associated with the pass-through of lower
natural gas and freight costs. This was partially offset by higher
demand for regeneration services as well as higher demand for
virgin sulfuric acid, primarily for mining and spot sales, compared
to the fourth quarter of 2022. Adjusted EBITDA was $48.4 million, compared to $54.4 million in the fourth quarter of 2022. The
decrease reflects lower net pricing associated with lower raw
material pass-through pricing, partially offset by higher sales
volume.
For the year, sales were $584.8
million, compared to $702.5
million in 2022. Approximately $86
million of the change was associated with lower pricing
associated with the pass-through of lower sulfur costs. The
remainder of the change was driven by lower sales volume, primarily
for virgin sulfuric acid, arising from the adverse impact of
Winter Storm Elliott and the
extended maintenance turnaround activity at our facilities, as well
as lower end use demand for virgin sulfuric acid, primarily in the
production of nylon intermediates. Favorable pricing continued to
benefit Ecoservices, driven by higher contractual and index pricing
within regeneration services, as well as the pass-through of higher
freight costs. Adjusted EBITDA was $200.0
million, compared to $227.8
million in 2022. The decrease reflects lower sales volume
for virgin sulfuric acid as well as higher unplanned repair and
maintenance costs associated with production downtime at several of
our manufacturing sites and the associated impact from Winter Storm Elliott, partially offset by
favorable pricing.
Advanced Materials & Catalysts
Our Advanced Silicas are 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. While we expect long-term demand for polyethylene films
and packaging to remain positive, late in the second quarter of
2023 we saw evidence of softer global demand and lower operating
rates for polyethylene producers, which resulted in lower sales of
polyethylene catalysts during the second half of 2023. Through the
Zeolyst Joint Venture, we also supply specialty catalysts to
customers for use in the production of both traditional and
sustainable fuels, petrochemicals, and emission control systems for
both on-road and non-road diesel engines. While demand for
traditional fuels has remained positive, demand for sustainable
fuels has increased, supporting higher sales of catalysts used in
sustainable fuel production.
During the fourth quarter of 2023, Advanced Silicas sales were
$31.4 million, up $8.4 million compared to the year-ago quarter,
reflecting higher sales across all product lines, driven primarily
by higher average selling prices and volume improvement in niche
custom catalysts. Zeolyst Joint Venture sales of $52.8 million increased 32.3% over the prior-year
quarter, largely driven by higher sales of hydrocracking catalysts.
Adjusted EBITDA, which includes the 50% proportionate share of the
Zeolyst Joint Venture, was $27.2
million up $6.9 million
compared to the year-ago quarter, with the increase reflecting
higher pricing and sales volume.
For the year, Advanced Silicas sales were $106.3 million, compared to $117.7 million in 2022. The change was driven by
lower demand for polyethylene catalysts, and to a lesser extent the
timing of niche custom catalyst sales, partially offset by higher
prices resulting from implemented price increases. Zeolyst
Joint Venture sales of $156.5 million
increased 18.0% compared to the prior year. The increase reflects
higher sales for hydrocracking, sustainable fuel and emission
control catalysts. Adjusted EBITDA of $81.9
million was up 5.0%, with the increase primarily due to
higher average selling prices in both Advanced Silicas and the
Zeolyst Joint Venture and higher sales volume within the Zeolyst
Joint Venture, partially offset by lower sales volume within
Advanced Silicas.
Cash Flows and Balance Sheet
Cash flows from operating activities was $137.6 million for the year ended
December 31, 2023, compared to
$186.6 million for the year ended
December 31, 2022. The decrease was
primarily driven by lower earnings, lower dividends from
affiliates, higher cash taxes and cash interest, and unfavorable
change in working capital. At December 31,
2023, the Company had cash and cash equivalents of
$88.4 million, total gross debt of
$877.5 million and availability under
the ABL facility of $63.8 million,
after giving effect to $4.0 million
of outstanding letters of credit and no revolving credit facility
borrowings, for total available liquidity of $152.2 million. As of December 31, 2023, the net debt to net income
ratio was 11.1x and the net debt leverage ratio was
3.0x.
2024 Financial Outlook
Full year 2024 guidance is as follows:
- Sales of $715 million to
$755 million
- Sales of $145 million to
$165 million for proportionate 50%
share of Zeolyst Joint Venture, which is excluded from GAAP
Sales
- Adjusted EBITDA1 of $255
million to $275 million
- Adjusted Free Cash Flow1 of $85 million to $105
million
- Capital expenditures of $70
million to $80 million
- Interest expense of $45 million
to $55 million
- Depreciation & Amortization
- Ecovyst - $85 million to
$95 million
- Zeolyst J.V. - $12 million to
$14 million
- Effective tax rate in the mid 20% range
"We believe that our regeneration services business will
experience another solid year in 2024, which will be somewhat
offset by a timing related off-cycle year for hydrocracking
catalysts. We are also cautious about the continuing uncertain
economic conditions moderating demand recovery for virgin sulfuric
acid and polyethylene catalysts. Ecovyst is firmly committed to
executing the strategy that we presented at our November 2023 investor day that we believe will
deliver long-term value for our shareholders. We believe our strong
cash generation and deep customer relationships will enable us to
advance our positions in emerging technologies that support areas
of significant growth potential including sustainable fuels,
advanced plastics recycling, bio-catalysis, and carbon capture. At
the same time, Ecovyst also plans to continue supporting the growth
of its core businesses such as regeneration services and
hydrocracking catalysts, while participating in the positive
longer-term growth trends supporting demand for virgin sulfuric
acid and polyethylene catalysts," said Bitting.
1In 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 the Company's equity sponsors,
as well as through open market repurchases.
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 underwriters at a price of $9.95 per share, for a total of $29.9 million.
In connection with a secondary offering in May 2023, the Company repurchased 4,000,000
shares of its common stock sold in the offering from the
underwriters at a price of $10.88 per
share, for a total of $43.5
million.
During the third quarter of 2023, the Company repurchased
541,494 shares of its common stock on the open market at an average
price of $9.85 per share, for a total
cost of $5.3 million.
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. For possible
future repurchases, the actual timing, number and nature of the
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, 2023, $234.6
million was available for additional share repurchases under
the program.
Conference Call and Webcast Details
On Wednesday, February 28, 2024, 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) 518-9848 (international) and using the participant
code ECVTQ423.
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, which are predominantly inorganic, and
our 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 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 processes.
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, net
debt to net income ratio, 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 2024
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,
|
|
%
|
|
|
2023
|
|
2022
|
|
Change
|
|
2023
|
|
2022
|
|
Change
|
|
|
|
|
Sales
|
|
$
172.8
|
|
$
182.8
|
|
(5.5) %
|
|
$
691.1
|
|
$
820.2
|
|
(15.7) %
|
|
Cost of goods
sold
|
|
125.5
|
|
133.3
|
|
(5.9) %
|
|
493.2
|
|
595.5
|
|
(17.2) %
|
|
Gross
profit
|
|
47.3
|
|
49.5
|
|
(4.4) %
|
|
197.9
|
|
224.7
|
|
(11.9) %
|
|
Selling, general and
administrative expenses
|
|
19.7
|
|
17.5
|
|
12.6 %
|
|
79.2
|
|
85.3
|
|
(7.2) %
|
|
Other operating
expense, net
|
|
4.8
|
|
9.9
|
|
(51.5) %
|
|
22.0
|
|
35.0
|
|
(37.1) %
|
|
Operating
income
|
|
22.8
|
|
22.1
|
|
3.2 %
|
|
96.7
|
|
104.4
|
|
(7.4) %
|
|
Equity in net (income)
from affiliated companies
|
|
(14.3)
|
|
(10.3)
|
|
38.8 %
|
|
(30.6)
|
|
(27.7)
|
|
10.5 %
|
|
Interest expense,
net
|
|
13.9
|
|
10.3
|
|
35.0 %
|
|
44.7
|
|
37.2
|
|
20.2 %
|
|
Other (income) expense,
net
|
|
—
|
|
(2.3)
|
|
(100.0) %
|
|
0.6
|
|
0.2
|
|
200.0 %
|
|
Income before income
taxes and noncontrolling interest
|
|
23.2
|
|
24.4
|
|
(4.9) %
|
|
82.0
|
|
94.7
|
|
(13.4) %
|
|
(Benefit) provision for
income taxes
|
|
(6.8)
|
|
2.9
|
|
(334.5) %
|
|
10.8
|
|
24.9
|
|
(56.6) %
|
|
Effective tax
rate
|
|
(29.3) %
|
|
11.9 %
|
|
(346.6) %
|
|
13.2 %
|
|
26.3 %
|
|
|
|
Net income from
continuing operations
|
|
30.0
|
|
21.5
|
|
39.5 %
|
|
71.2
|
|
69.8
|
|
2.0 %
|
|
Net income from
discontinued operations, net of tax
|
|
—
|
|
3.9
|
|
(100.0) %
|
|
—
|
|
3.9
|
|
(100.0) %
|
|
Net income
|
|
$ 30.0
|
|
$ 25.4
|
|
18.1 %
|
|
$ 71.2
|
|
$ 73.7
|
|
(3.4) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations attributable to Ecovyst Inc.
|
|
30.0
|
|
21.5
|
|
|
|
71.2
|
|
69.8
|
|
|
|
Income from
discontinued operations attributable to Ecovyst Inc.
|
|
—
|
|
3.9
|
|
|
|
—
|
|
3.9
|
|
|
|
Net income
|
|
30.0
|
|
25.4
|
|
|
|
71.2
|
|
73.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income per share
- continuing operations
|
|
$ 0.26
|
|
$ 0.17
|
|
|
|
$ 0.60
|
|
$ 0.52
|
|
|
|
Diluted income per
share - continuing operations
|
|
$ 0.26
|
|
$ 0.17
|
|
|
|
$ 0.60
|
|
$ 0.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
116,116,895
|
|
125,962,111
|
|
|
|
118,367,214
|
|
133,601,322
|
|
|
|
Diluted
|
|
117,190,747
|
|
127,538,343
|
|
|
|
119,487,709
|
|
135,088,172
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ECOVYST INC. AND
SUBSIDIARIES
|
|
CONSOLIDATED BALANCE
SHEETS
|
|
(in millions, except
share and per share amounts)
|
|
|
December 31,
2023
|
|
December 31,
2022
|
|
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
$
88.4
|
|
$
110.9
|
|
Accounts receivables,
net
|
81.3
|
|
74.8
|
|
Inventories,
net
|
45.1
|
|
44.4
|
|
Derivative
assets
|
13.4
|
|
18.5
|
|
Prepaid and other
current assets
|
17.8
|
|
19.1
|
|
Total current
assets
|
246.0
|
|
267.7
|
|
Investments in
affiliated companies
|
440.2
|
|
436.0
|
|
Property, plant and
equipment, net
|
576.9
|
|
584.9
|
|
Goodwill
|
404.5
|
|
403.2
|
|
Other intangible
assets, net
|
116.6
|
|
129.9
|
|
Right-of-use lease
assets
|
24.3
|
|
28.3
|
|
Other long-term
assets
|
29.3
|
|
34.6
|
|
Total
assets
|
$
1,837.8
|
|
$
1,884.6
|
|
LIABILITIES
|
|
|
|
|
Current maturities of
long-term debt
|
$
9.0
|
|
$
9.0
|
|
Accounts
payable
|
40.2
|
|
40.0
|
|
Operating lease
liabilities—current
|
8.2
|
|
8.2
|
|
Accrued
liabilities
|
61.7
|
|
72.2
|
|
Total current
liabilities
|
119.1
|
|
129.4
|
|
Long-term debt,
excluding current portion
|
858.9
|
|
865.9
|
|
Deferred income
taxes
|
115.8
|
|
136.2
|
|
Operating lease
liabilities—noncurrent
|
16.0
|
|
20.0
|
|
Other long-term
liabilities
|
22.5
|
|
25.8
|
|
Total
liabilities
|
1,132.3
|
|
1,177.3
|
|
Commitments and
contingencies
|
|
|
|
|
EQUITY
|
|
|
|
|
Common stock ($0.01
par); authorized shares 450,000,000; issued shares 140,774,045 and
139,571,272 on December 31, 2023 and 2022, respectively;
outstanding shares 116,116,895 and 122,186,238 on December 31, 2023
and 2022, respectively
|
1.4
|
|
1.4
|
|
Preferred stock ($0.01
par); authorized shares 50,000,000; no shares issued or outstanding
on December 31, 2023 and 2022, respectively
|
—
|
|
—
|
|
Additional paid-in
capital
|
1,102.6
|
|
1,091.5
|
|
Accumulated
deficit
|
(170.9)
|
|
(242.0)
|
|
Treasury stock, at
cost; shares 24,627,150 and 17,385,034 on December 31, 2023 and
2022, respectively
|
(226.7)
|
|
(149.6)
|
|
Accumulated other
comprehensive (income) loss
|
(0.9)
|
|
6.0
|
|
Total
equity
|
705.5
|
|
707.3
|
|
Total liabilities and
equity
|
$
1,837.8
|
|
$
1,884.6
|
|
ECOVYST INC. AND
SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
Years ended December
31,
|
|
|
2023
|
|
2022
|
|
Cash flows from
operating activities:
|
|
(in
millions)
|
|
Net income
|
|
$
71.2
|
|
$
73.7
|
|
Net income from
discontinued operations
|
|
—
|
|
(3.9)
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation
|
|
70.6
|
|
65.1
|
|
Amortization
|
|
14.0
|
|
14.0
|
|
Amortization of
deferred financing costs and original issue discount
|
|
2.1
|
|
2.0
|
|
Foreign currency
exchange (gain) loss
|
|
(0.6)
|
|
1.0
|
|
Deferred income tax
provision (benefit)
|
|
(17.1)
|
|
1.7
|
|
Net loss on asset
disposals
|
|
4.1
|
|
3.6
|
|
Stock
compensation
|
|
16.0
|
|
20.6
|
|
Equity in net income
from affiliated companies
|
|
(30.6)
|
|
(27.7)
|
|
Dividends received
from affiliated companies
|
|
28.0
|
|
35.0
|
|
Other, net
|
|
0.6
|
|
(2.7)
|
|
Working capital
changes that provided (used) cash, excluding the effect of
acquisitions and dispositions:
|
|
|
|
|
|
Receivables
|
|
(6.1)
|
|
5.5
|
|
Inventories
|
|
(1.4)
|
|
9.9
|
|
Prepaids and other
current assets
|
|
(1.0)
|
|
—
|
|
Accounts
payable
|
|
2.4
|
|
(10.1)
|
|
Accrued
liabilities
|
|
(14.6)
|
|
(7.4)
|
|
Net cash provided by
operating activities, continuing operations
|
|
137.6
|
|
180.3
|
|
Net cash provided by
operating activities, discontinued operations
|
|
—
|
|
6.3
|
|
Net cash provided by
operating activities
|
|
137.6
|
|
186.6
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
Purchases of property,
plant and equipment
|
|
(65.3)
|
|
(58.9)
|
|
Payments for business
divestiture, net of cash
|
|
—
|
|
(3.7)
|
|
Business combinations,
net of cash acquired
|
|
—
|
|
(0.5)
|
|
Other, net
|
|
—
|
|
0.1
|
|
Net cash used in
investing activities, continuing operations
|
|
(65.3)
|
|
(63.0)
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
Draw down of revolving
credit facilities
|
|
14.5
|
|
—
|
|
Repayments of
revolving credit facilities
|
|
(14.5)
|
|
—
|
|
Repayments of
long-term debt
|
|
(9.0)
|
|
(9.0)
|
|
Repurchases of common
shares
|
|
(78.7)
|
|
(136.7)
|
|
Tax withholdings on
equity award vesting
|
|
(3.4)
|
|
(0.3)
|
|
Repayments of finance
lease obligations
|
|
(2.8)
|
|
(2.7)
|
|
Other
|
|
0.4
|
|
0.6
|
|
Net cash used in
financing activities, continuing operations
|
|
(93.5)
|
|
(148.1)
|
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
|
(1.3)
|
|
(5.5)
|
|
Net change in cash,
cash equivalents and restricted cash
|
|
(22.5)
|
|
(30.0)
|
|
Cash, cash equivalents
and restricted cash at beginning of period
|
|
110.9
|
|
140.9
|
|
Cash, cash equivalents
and restricted cash at end of period
|
|
$
88.4
|
|
$
110.9
|
|
|
|
|
|
|
Appendix Table A-1:
Reconciliation of Net Income to Adjusted EBITDA
|
|
|
|
Three months
ended
December
31,
|
|
Years
ended
December
31,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
(in
millions)
|
|
Reconciliation of
net income to Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
Net income from
continuing operations
|
|
$
30.0
|
|
$
21.5
|
|
$
71.2
|
|
$
69.8
|
|
(Benefit) provision
for income taxes
|
|
(6.8)
|
|
2.9
|
|
10.8
|
|
24.9
|
|
Interest expense,
net
|
|
13.9
|
|
10.3
|
|
44.7
|
|
37.2
|
|
Depreciation and
amortization
|
|
22.1
|
|
20.4
|
|
84.6
|
|
79.2
|
|
EBITDA
|
|
59.2
|
|
55.1
|
|
211.3
|
|
211.1
|
|
Joint venture
depreciation, amortization and interest(a)
|
|
3.3
|
|
4.0
|
|
13.4
|
|
16.0
|
|
Amortization of
investment in affiliate step-up(b)
|
|
1.6
|
|
1.6
|
|
6.4
|
|
6.4
|
|
Net loss on asset
disposals(c)
|
|
0.8
|
|
2.4
|
|
4.1
|
|
3.6
|
|
Foreign currency
exchange (gain) loss(d)
|
|
(0.9)
|
|
(0.8)
|
|
(1.3)
|
|
1.4
|
|
LIFO expense
(benefit)(e)
|
|
1.0
|
|
(0.2)
|
|
3.5
|
|
(0.2)
|
|
Transaction and other
related costs(f)
|
|
0.2
|
|
0.1
|
|
3.0
|
|
7.0
|
|
Equity-based
compensation
|
|
3.4
|
|
3.2
|
|
16.0
|
|
20.6
|
|
Restructuring,
integration and business optimization
expenses(g)
|
|
0.3
|
|
5.2
|
|
2.7
|
|
11.6
|
|
Other(h)
|
|
0.9
|
|
(1.4)
|
|
0.8
|
|
(0.7)
|
|
Adjusted
EBITDA
|
|
$
69.8
|
|
$
69.2
|
|
$
259.9
|
|
$
276.8
|
|
|
|
|
|
|
|
|
|
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 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 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, effectively
reflecting the results as if these inventories were valued using
the FIFO 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 Income and EPS to Adjusted Net Income and
Adjusted EPS(1)
|
|
|
Three months ended
December 31,
|
|
2023
|
|
2022
|
|
Pre-tax
|
Tax
expense
(benefit)
|
After-
tax
|
Per share,
basic
|
Per share,
diluted
|
|
Pre-tax
|
Tax
expense
(benefit)
|
After-
tax
|
Per share,
basic
|
Per share,
diluted
|
|
(in millions, except
share and per share amounts)
|
|
Net income from
continuing operations
|
$
23.2
|
$
(6.8)
|
$
30.0
|
$
0.26
|
$
0.26
|
|
$
24.4
|
$ 2.9
|
$
21.5
|
$
0.17
|
$
0.17
|
|
Amortization of
investment in affiliate step-up(b)
|
1.6
|
0.3
|
1.3
|
0.01
|
0.01
|
|
1.6
|
0.2
|
1.4
|
0.01
|
0.01
|
|
Net loss on asset
disposals(c)
|
0.8
|
0.1
|
0.7
|
0.01
|
0.01
|
|
2.4
|
0.5
|
1.9
|
0.02
|
0.02
|
|
Foreign currency
exchange gain(d)
|
(0.9)
|
(0.2)
|
(0.7)
|
(0.01)
|
(0.01)
|
|
(0.8)
|
(0.1)
|
(0.7)
|
(0.01)
|
(0.01)
|
|
LIFO expense
(benefit)(e)
|
1.0
|
0.2
|
0.8
|
0.01
|
0.01
|
|
(0.2)
|
(0.1)
|
(0.1)
|
—
|
—
|
|
Transaction and other
related costs(f)
|
0.2
|
—
|
0.2
|
—
|
—
|
|
0.1
|
(0.6)
|
0.7
|
0.01
|
0.01
|
|
Equity-based
compensation
|
3.4
|
0.3
|
3.1
|
0.03
|
0.03
|
|
3.2
|
(0.7)
|
3.9
|
0.03
|
0.03
|
|
Restructuring,
integration and business optimization
expenses(g)
|
0.3
|
0.1
|
0.2
|
—
|
—
|
|
5.2
|
0.9
|
4.3
|
0.03
|
0.03
|
|
Other(h)
|
0.9
|
0.2
|
0.7
|
—
|
—
|
|
(1.4)
|
(0.3)
|
(1.1)
|
(0.01)
|
(0.01)
|
|
Adjusted Net Income,
including Impact of valuation allowance release
|
30.5
|
(5.8)
|
36.3
|
0.31
|
0.31
|
|
34.5
|
2.7
|
31.8
|
0.25
|
0.25
|
|
Impact of valuation
allowance release(2)
|
—
|
10.2
|
(10.2)
|
(0.09)
|
(0.09)
|
|
—
|
—
|
—
|
—
|
—
|
|
Adjusted Net
Income(1)
|
$
30.5
|
$ 4.4
|
$
26.1
|
$
0.22
|
$
0.22
|
|
$
34.5
|
$ 2.7
|
$
31.8
|
$
0.25
|
$
0.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding
|
|
|
|
116,116,895
|
117,190,747
|
|
|
|
|
125,962,111
|
127,538,343
|
|
|
|
|
|
Years ended December
31,
|
|
2023
|
|
2022
|
|
Pre-tax
|
Tax
expense
(benefit)
|
After-
tax
|
Per share,
basic
|
Per share,
diluted
|
|
Pre-tax
|
Tax
expense
(benefit)
|
After-
tax
|
Per share,
basic
|
Per share,
diluted
|
|
(in millions, except
share and per share amounts)
|
|
Net income from
continuing operations
|
$
82.0
|
$
10.8
|
$
71.2
|
$
0.60
|
$
0.60
|
|
$
94.7
|
$
24.9
|
$
69.8
|
$
0.52
|
$
0.52
|
|
Amortization of
investment in affiliate step-up(b)
|
6.4
|
1.6
|
4.8
|
0.04
|
0.04
|
|
6.4
|
1.5
|
4.9
|
0.04
|
0.04
|
|
Net loss on asset
disposals(c)
|
4.1
|
1.0
|
3.1
|
0.03
|
0.03
|
|
3.6
|
0.9
|
2.7
|
0.02
|
0.02
|
|
Foreign currency
exchange (gain) loss(d)
|
(1.3)
|
(0.3)
|
(1.0)
|
(0.01)
|
(0.01)
|
|
1.4
|
0.4
|
1.0
|
0.01
|
0.01
|
|
LIFO expense
(benefit)(e)
|
3.5
|
0.9
|
2.6
|
0.02
|
0.02
|
|
(0.2)
|
(0.1)
|
(0.1)
|
—
|
—
|
|
Transaction and other
related costs(f)
|
3.0
|
0.8
|
2.2
|
0.02
|
0.02
|
|
7.0
|
1.1
|
5.9
|
0.04
|
0.04
|
|
Equity-based
compensation
|
16.0
|
1.5
|
14.5
|
0.12
|
0.12
|
|
20.6
|
(0.1)
|
20.7
|
0.15
|
0.15
|
|
Restructuring,
integration and business optimization
expenses(g)
|
2.7
|
0.7
|
2.0
|
0.02
|
0.02
|
|
11.6
|
2.8
|
8.8
|
0.07
|
0.07
|
|
Other(h)
|
0.8
|
0.2
|
0.6
|
0.01
|
—
|
|
(0.7)
|
(0.2)
|
(0.5)
|
—
|
(0.01)
|
|
Adjusted Net Income,
including Impact of valuation allowance release
|
117.2
|
17.2
|
100.0
|
0.85
|
0.84
|
|
144.4
|
31.2
|
113.2
|
0.85
|
0.84
|
|
Impact of valuation
allowance release(2)
|
—
|
10.2
|
(10.2)
|
(0.09)
|
(0.09)
|
|
—
|
—
|
—
|
—
|
—
|
|
Adjusted Net
Income(1)
|
$
117.2
|
$
27.4
|
$
89.8
|
$
0.76
|
$
0.75
|
|
$
144.4
|
$
31.2
|
$
113.2
|
$
0.85
|
$
0.84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding
|
|
|
|
118,367,214
|
119,487,709
|
|
|
|
|
133,601,322
|
135,088,172
|
|
|
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)
|
Represents the tax
impact of the state tax credit valuation allowance release. Item is
not expected to be recurring.
|
The adjustments to net income attributable to Ecovyst Inc.
are shown net of each applicable statutory tax rates of 25.4% and
23.9% for the year ended December 31,
2023 and 2022, respectively, except for 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.
162(m), and adding the tax effect of equity-based stock
compensation shortfall recorded as a discrete item.
|
Appendix Table
A-3: Sales and Adjusted EBITDA by Business
Segment
|
|
|
|
Three months
ended
December
31,
|
|
|
|
Years
ended
December
31,
|
|
|
|
|
2023
|
|
2022
|
|
%
Change
|
|
2023
|
|
2022
|
|
%
Change
|
|
|
|
|
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ecoservices
|
|
$
141.4
|
|
$
159.8
|
|
(11.5) %
|
|
$
584.8
|
|
$
702.5
|
|
(16.8) %
|
|
Advanced
Silicas
|
|
31.4
|
|
23.0
|
|
36.5 %
|
|
106.3
|
|
117.7
|
|
(9.7) %
|
|
Total
sales
|
|
$
172.8
|
|
$
182.8
|
|
(5.5) %
|
|
$
691.1
|
|
$
820.2
|
|
(15.7) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Zeolyst Joint Venture
sales
|
|
$ 52.8
|
|
$ 39.9
|
|
32.3 %
|
|
$
156.5
|
|
$
132.6
|
|
18.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ecoservices
|
|
$ 48.4
|
|
$ 54.4
|
|
(11.0) %
|
|
$
200.0
|
|
$
227.8
|
|
(12.2) %
|
|
Advanced Materials
& Catalysts
|
|
27.2
|
|
20.3
|
|
34.0 %
|
|
81.9
|
|
78.0
|
|
5.0 %
|
|
Unallocated corporate
expenses
|
|
(5.8)
|
|
(5.5)
|
|
5.5 %
|
|
(22.0)
|
|
(29.0)
|
|
(24.1) %
|
|
Total Adjusted
EBITDA
|
|
$ 69.8
|
|
$ 69.2
|
|
0.9 %
|
|
$
259.9
|
|
$
276.8
|
|
(6.1) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ecoservices
|
|
34.2 %
|
|
34.0 %
|
|
|
|
34.2 %
|
|
32.4 %
|
|
|
|
Advanced Materials
& Catalysts(1)
|
|
32.3 %
|
|
32.3 %
|
|
|
|
31.2 %
|
|
31.2 %
|
|
|
|
Total Adjusted
EBITDA Margin(1)
|
|
30.9 %
|
|
31.1 %
|
|
|
|
30.7 %
|
|
29.0 %
|
|
|
|
|
|
(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,
|
|
|
2023
|
|
2022
|
|
|
(in
millions)
|
|
Net cash provided by
operating activities, continuing operations
|
|
$ 137.6
|
|
$ 180.3
|
|
Net cash (used in)
provided by operating activities, discontinued
operations
|
|
—
|
|
6.3
|
|
Net cash provided by
operating activities
|
|
137.6
|
|
186.6
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
Purchases of property,
plant and equipment(1)
|
|
(65.3)
|
|
(58.9)
|
|
|
|
|
|
|
Free cash
flow
|
|
72.3
|
|
127.7
|
|
|
|
|
|
|
Adjustments to free
cash flow:
|
|
|
|
|
|
Cash paid for costs
related to segment disposals
|
|
—
|
|
18.1
|
|
|
|
|
|
|
Adjusted free cash
flow(2)
|
|
$
72.3
|
|
$ 145.8
|
|
|
|
|
|
|
Net cash provided by
investing activities(3)
|
|
$
(65.3)
|
|
$
(63.0)
|
|
Net cash used in
financing activities
|
|
$
(93.5)
|
|
$
(148.1)
|
|
|
|
(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 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,
|
|
2023
|
|
2022
|
|
(in millions, except
ratios)
|
|
Total debt
|
$
877.5
|
|
$
886.5
|
|
Less:
|
|
|
|
|
Cash and cash
equivalents
|
88.4
|
|
110.9
|
|
Net debt
|
$
789.1
|
|
$
775.6
|
|
|
|
|
|
Trailing twelve
months(1):
|
|
|
|
|
Net Income
|
71.2
|
|
69.8
|
|
Adjusted
EBITDA(2)
|
259.9
|
|
276.8
|
|
|
|
|
|
Net Debt to Net Income
Ratio
|
11.1 x
|
|
11.1 x
|
|
Net Debt Leverage
Ratio
|
3.0 x
|
|
2.8 x
|
|
|
|
|
|
(1)
|
Calculated on a
continuing operations basis.
|
|
|
|
(2)
|
Refer to Appendix Table
A-1: Reconciliation of Net Income to Adjusted EBITDA for the
reconciliation to the most comparable GAAP financial
measure.
|
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SOURCE Ecovyst Inc.