Ecovyst Inc. · NYSE:ECVT
Ecovyst — Q3 2019 Earnings Presentation
22 slides from Ecovyst's earnings presentation, Oct 31, 2019
Slide 1: Third Quarter 2019 Investor Presentation
Third Quarter 2019 October 31, 2019 – 11:00 AM ET INVESTOR PRESENTATION 1
Slide 2: Legal Disclaimer
LEGAL DISCLAIMER Forward-Looking Statements Some of the information contained in this presentation, the conference call during which this presentation is reviewed and any discussions that follow constitutes “forward-looking statements”. Forward-looking statements can be identified by words such as “
Slide 3: Third Quarter 2019 Highlights
THIRD QUARTER 2019 HIGHLIGHTS STRATEGIC BUSINESS HIGHLIGHTS FINANCIAL HIGHLIGHTS Health, Safety & Environment (HSE) Solid performance o Continued improvement in our HSE o Sales of $423.8 million performance driving increased “Perfect Days” o Adjusted EBITDA of $137.7 million o Adjusted EBITDA Margin
Slide 4: Third Quarter 2019 Financial Results
THIRD QUARTER 2019 FINANCIAL RESULTS Third Third % Quarter Quarter $ % Constant ($ in millions) 2019 2018 Change Change Currency Sales 423.8 427.2 (3.4) (0.8%) 0.4% Adjusted EBITDA 137.7 118.1 19.6 16.6% 17.7% Adjusted EBITDA 28.8% 25.7% 310 bps Margin1 o Results reflect the benefits of a diversifie
Slide 5: Refining Services
REFINING SERVICES Third Third % Quarter Quarter $ % Constant ($ in millions) 2019 2018 Change Change Currency Sales 118.3 123.4 (5.1) (4.1%) (4.1%) Adjusted EBITDA 51.2 49.6 1.6 3.2% 3.2% Adjusted EBITDA 43.3% 40.2% 310 bps Margin o Sales decreased primarily on lower sulfur price Q3 Change Factors p
Slide 6: Catalysts
CATALYSTS Third Third % Quarter Quarter $ % Constant ($ in millions) 2019 2018 Change Change Currency Sales Silica Catalysts 25.6 16.3 9.3 57.1% 58.3% Zeolyst JV 54.4 32.3 22.1 68.4% 68.4% Adjusted EBITDA 31.6 15.7 15.9 101.3% 102.5% Adjusted EBITDA 39.5% 32.3% 720 bps Margin1 Q3 Change Factors o Si
Slide 7: Performance Materials
PERFORMANCE MATERIALS Third Third % Quarter Quarter $ % Constant ($ in millions) 2019 2018 Change Change Currency Sales 115.1 115.4 (0.3) (0.3%) 1.6% Adjusted EBITDA 25.8 21.3 4.5 21.1% 22.5% Adjusted EBITDA 22.4% 18.5% 390 bps Margin o Sales in line with favorable Adjusted EBITDA Q3 Change Factors
Slide 8: Performance Chemicals
PERFORMANCE CHEMICALS Third Third % Quarter Quarter $ % Constant ($ in millions) 2019 2018 Change Change Currency Sales 167.9 174.7 (6.8) (3.9%) (2.1%) Adjusted EBITDA 36.8 41.8 (5.0) (12.0%) (10.0%) Adjusted EBITDA 21.9% 23.9% (200 bps) Margin o Sales reflect softening demand from sodium Q3 Change
Slide 9: Adjusted Free Cash Flow
ADJUSTED FREE CASH FLOW Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, ($ in millions) 2019 2018 2019 2018 Cash Flow from Operations before 150.2 144.3 277.5 265.7 interest and tax Less: Cash paid for taxes 5.0 5.0 13
Slide 10: 2019 Guidance Update
2019 GUIDANCE UPDATE ($ in millions, 2018 2019 except % and per share) Actual Outlook Sales 1,608.2 1,560 – 1,5801 Adjusted EBITDA 464.0 470 – 485 Adjusted Free Cash Flow 134.2 125 – 1452 Adjusted Diluted EPS 0.87 0.84 – 0.873 Interest Expense 113.7 112 – 1164 Depreciation & Amortization PQ 185.2 18
Slide 11: Performance Materials
PERFORMANCE MATERIALS GLOBAL FOOTPRINT 2018 SALES By Geography1 Latin America & Rest of World ~20% Europe ~20% ~60% North America By Product Line Engineered Glass Materials ~35% Transportation Safety ~65% Innovation Site Production Facilities Premier global supplier of glass microspheres for transpo
Slide 12: Performance Materials
PERFORMANCE MATERIALS TRANSPORTATION SAFETY ENGINEERED GLASS MATERIALS ~80% replacement business Growing trends for light weighting funded by gasoline taxes and higher strength in plastics Increasing safety regulations Substituting for other abrasive and specifications for higher materials for clean
Slide 13: Portfolio Strengths and Priorities
PORTFOLIO STRENGTHS AND PRIORITIES KEY VALUE DRIVERS Profitable COMPETITIVE ADVANTAGES Growth Unique portfolio of businesses Capital Leading positions in Commercial Intensity secular growth markets Efficiency Innovation potential Free Cash Flow 13
Slide 14: Appendix
APPENDIX Q recreation y ~~
Slide 15: Supplemental Information
SUPPLEMENTAL INFORMATION Third Quarter 2019 Capital Expenditures, Capitalization and Sales by End Use CAPITAL EXPENDITURES1 September 30, September 30, ($ in millions) 2019 2018 % OF SALES GROWTH BY END USE 4 Maintenance2 20.8 18.9 Fuels & Emissions Controls 19% Growth3 5.4 10.3 Highway Safety & Con
Slide 16: Quarterly Segment Sales, Adjusted EBITDA and Margins
QUARTERLY SEGMENT SALES, ADJUSTED EBITDA AND MARGINS Third Quarter 2019, Year-to-Date 2019 and Year 2018 Nine Months Three Months Ended For the Quarter Ended Ended Three Months Ended Year Ended December 31, March 31, June 30, September 30, September 30, March 31, June 30, September 30, December 31,
Slide 17: Sales and Adjusted EBITDA Major Change Factors
SALES AND ADJUSTED EBITDA MAJOR CHANGE FACTORS Third Quarter 2019 and Year-to-Date 2019 SALES Three months ended Nine months ended September 30, 2019 September 30, 2019 Sales PQ Group Refining Performance Performance PQ Group Refining Performance Performance (in $ millions and %) Holdings Inc. Servi
Slide 18: Reconciliation of Net Income to Segment Adjusted EBITDA
RECONCILATION OF NET INCOME TO SEGMENT ADJUSTED EBITDA Third Quarter 2019, Year-to-Date 2019 and Year 2018 Nine Months Three Months Ended Ended Three Months Ended Year Ended March 31, June 30, September 30, September30, March 31, June 30, September 30, December 31, December 31, ($ in millions) 2019
Slide 19: Reconciliation of Net Income to Adjusted Net Income and EPS
RECONCILATION OF QUARTERLY NET INCOME TO ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE Third Quarter 2019, Year-to-Date 2019 and Year 2018 Nine Months Three Months Ended Ended Three Months Ended Year Ended March 31, June 30, September 30, September 30, March 31, June 30, September 30,
Slide 20: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Descriptions to PQ Non-GAAP Reconciliations a) We use Adjusted EBITDA as a performance measure to evaluate our financial results. Because our Catalysts segment includes our 50% interest in our Zeolyst Joint Venture, we include an adjustment for our 50% p
Slide 21: Constant Currency Sales and Adjusted EBITDA
CONSTANT CURRENCY SALES AND ADJUSTED EBITDA Third Quarter 2019 Versus 2018 Three Months Ended Three Months Ended September 30, 2019 September 30, 2018 Constant Constant Currency ($ in millions except %, unaudited) As Reported FX Impact Currency As Reported % Change Sales: $ $ $ $ % Refining Services
Slide 22: PQ Corporation
PQ Corporation 22