Ecovyst Inc. · NYSE:ECVT
Ecovyst — PQ Group Holdings — Q2 2019 Earnings Presentation
22 slides from Ecovyst's earnings presentation, Aug 8, 2019
Slide 1: Second Quarter 2019 Investor Presentation
Second Quarter 2019 August 8, 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: Second Quarter 2019 Highlights
SECOND QUARTER 2019 HIGHLIGHTS STRATEGIC BUSINESS HIGHLIGHTS FINANCIAL HIGHLIGHTS Continuing focus on safety goals Strong Q2 results Executing commercial strategies o Sales of ~$432 million o Achieved higher pricing in all business o Adjusted EBITDA of ~$133 million segments o Adjusted EBITDA Margin
Slide 4: Second Quarter 2019 Financial Results
SECOND QUARTER 2019 FINANCIAL RESULTS Higher Margin Business Drives Adjusted EBITDA Growth Second Second % Quarter Quarter $ % Constant ($ in millions) 2019 2018 Change Change Currency Sales 431.7 434.7 (3.0) (0.7%) 1.4% Adjusted EBITDA 132.5 128.9 3.6 2.8% 4.6% Adjusted EBITDA 28.1% 26.6% 150 bps M
Slide 5: Refining Services
REFINING SERVICES Continued Solid Performance Second Second % Quarter Quarter $ % Constant ($ in millions) 2019 2018 Change Change Currency Sales 117.3 112.1 5.2 4.6% 4.6% Adjusted EBITDA 42.8 41.3 1.5 3.6% 3.6% Adjusted EBITDA 36.5% 36.8% (30 bps) Margin Q2 Change Factors Sales: % o Sales increased
Slide 6: Catalysts
CATALYSTS Accelerated Silica Catalyst Orders and Product Mix Drive Strong Results Second Second % Quarter Quarter $ % Constant ($ in millions) 2019 2018 Change Change Currency Sales Silica Catalysts 20.9 17.3 3.6 20.8% 23.5% Zeolyst JV 39.1 49.5 (10.4) (21.0%) (21.0%) Adjusted EBITDA 29.6 23.6 6.0 2
Slide 7: Performance Materials
PERFORMANCE MATERIALS Higher Pricing Drives Margin Improvement Second Second % Quarter Quarter $ % Constant ($ in millions) 2019 2018 Change Change Currency Sales 118.9 126.5 (7.6) (6.0%) (3.5%) Adjusted EBITDA 29.2 28.6 0.6 2.1% 3.9% Adjusted EBITDA 24.6% 22.6% 200 bps Margin o Sales down largely o
Slide 8: Performance Chemicals
PERFORMANCE CHEMICALS Softening Demand Impacts Results Second Second % Quarter Quarter $ % Constant ($ in millions) 2019 2018 Change Change Currency Sales 177.8 183.8 (6.0) (3.3%) (0.2%) Adjusted EBITDA 41.2 44.8 (3.6) (8.0%) (4.8%) Adjusted EBITDA 23.1% 24.4% (130 bps) Margin Q2 Change Factors o Sa
Slide 9: 2019 Guidance Update
2019 GUIDANCE UPDATE Reaffirming Adjusted EBITDA and Adjusted Free Cash Flow Targets 2018 2019 ($ in millions except %) Actual Outlook Sales 1,608.2 1,580 – 1,6001 Adjusted EBITDA 464.0 470 – 485 Adjusted Free Cash Flow 134.2 125 – 1452 Adjusted Diluted EPS $0.87 $0.77 - $0.933 Interest Expense 113.
Slide 10: Performance Chemicals
PERFORMANCE CHEMICALS Stable Business Profile, Solid Margins and Strong Free Cash Flow Generation GLOBAL FOOTPRINT 2018 SALES By Geography1 S. America Rest of World 6% 5% Asia 10% 46% North America Europe 33% By Product Line Other Silicates & Derivatives2 30% 50% Sodium R&D Site Performance Chemical
Slide 11: Performance Chemicals
PERFORMANCE CHEMICALS Environmentally Friendly and Diverse Applications Drive Sustainable Growth Trends % OF 2018 SALES Consumer Products BY END USE1 Industrial & Process Chemicals Supplying base materials for production of Improving oral hygiene and toothpaste “green tires” for reduced rolling resi
Slide 12: Portfolio Strengths and Priorities
PORTFOLIO STRENGTHS AND PRIORITIES Drive Shareholder Value KEY VALUE DRIVERS Profitable COMPETITIVE ADVANTAGES Growth Unique portfolio of businesses Capital Leading positions in Commercial Intensity secular growth markets Efficiency Innovation potential Free Cash Flow 12
Slide 13: Appendix
APPENDIX ; Q)Pacorporation PY J ae |
Slide 14: Adjusted Free Cash Flow
ADJUSTED FREE CASH FLOW Year-to-Date 2019 Versus 2018 Six Months Six Months Ended Ended June 30, June 30, ($ in millions) 2019 2018 Cash Flow from Operations before interest and tax 127.3 121.4 Less: Cash paid for taxes 8.3 11.1 Cash paid for interest1 59.0 60.2 Cash Flow from Operations 60.0 50.1 L
Slide 15: Supplemental Information
SUPPLEMENTAL INFORMATION Second Quarter 2019 Capital Expenditures, Capitalization and Sales by End Use CAPITAL EXPENDITURES1 June 30, June 30, ($ in millions) 2019 2018 % OF SALES GROWTH BY END USE 4 Maintenance2 23.6 26.1 Fuels & Emissions Controls ( 2%) Growth3 8.3 6.6 Highway Safety & Constructio
Slide 16: Quarterly Segment Sales, Adjusted EBITDA and Margins
QUARTERLY SEGMENT SALES, ADJUSTED EBITDA AND MARGINS First Half 2019 and Year 2018 Six Months Three Months Ended EndedFor the Quarter Ended Three Months Ended Year Ended December 31, March 31, June 30, June 30, March 31, June 30, September 30, December 31, ($ in millions except %, unaudited) 2019 20
Slide 17: Sales and Adjusted EBITDA Major Change Factors
SALES AND ADJUSTED EBITDA MAJOR CHANGE FACTORS First Half 2019 SALES Three months ended Six months ended June 30, 2019 June 30, 2019 Sales PQ Group Refining Performance Performance PQ Group Refining Performance Performance (in $ millions and %) Holdings Inc. Services Catalysts Materials Chemicals Ho
Slide 18: Reconciliation of Net Income to Segment Adjusted EBITDA
RECONCILATION OF NET INCOME TO SEGMENT ADJUSTED EBITDA First Half 2019 and Year 2018 Six Months Three Months Ended Ended Three Months Ended Year Ended March 31, June 30, June 30, March 31, June 30, September 30, December 31, December 31, ($ in millions) 2019 2019 2019 2018 2018 2018 2018 2018 Reconc
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 First Half 2019 and Year 2018 Six Month Three Months Ended Ended Three Months Ended Year Ended March 31, June 30, June 30, March 31, June 30, September 30, December 31, December 31, ($ in millions ex
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 Second Quarter 2019 Versus 2018 Three Months Ended Three Months Ended June 30, 2019 June 30, 2018 Constant Constant Currency ($ in millions except %, unaudited) As Reported FX Impact Currency As Reported % Change Sales: $ $ $ $ % Refining Services 117.3 —
Slide 22: PQ Corporation
PQ Corporation 22