Ecovyst Inc. · NYSE:ECVT
Ecovyst — Q3 2024 Earnings Presentation
24 slides from Ecovyst's earnings presentation, Oct 31, 2024
Slide 1: Third Quarter 2024
Third Quarter 2024 October 31, 2024 — 11 a.m. ET YOUR CATALYST FOR POSITIVE CHANGE™
Slide 2: Legal Discussion: Forward-Looking Statements
Legal Discussion 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: Legal Discussion: Supply Share and Industry Information
Legal Discussion Supply Share and Industry Information Certain statistical information used in this presentation is based on independent industry publications, reports by research firms or other published independent sources. Some statistical information is also based on our good faith estimates whi
Slide 4: Key Messages - Third Quarter 2024
Key Messages - Third Quarter 2024 1 Positive third quarter results for Ecoservices reflect higher sales volume for virgin sulfuric acid and favorable contractual pricing for regeneration services 2 Within Advanced Silicas, sales of polyethylene catalysts increased, largely offset by timing of event-
Slide 5: Q3 2024 Key Highlights
Key Highlights Q3 2024 Key Highlights $179 Mln $60 Mln 29% GAAP Sales Adj. EBITDA Adj. EBITDA Margin Q3 2024 Q3 20241 Q3 20241,2 3.2x $59 Mln $188 Mln Net Debt Leverage Adjusted Liquidity5 Ratio1,4 Free Cash Flow 1,3 1. See Appendix for Reconciliations of non-GAAP measures 2. Adjusted EBITDA Margin
Slide 6: Demand Trends and Drivers
Demand Trends and Drivers Sources: EIA, S&P, LMC, CMA, Bloomberg, Management Estimates THIRD QUARTER EARNINGS 2024 / 6
Slide 7: Third Quarter 2024 Financial Performance
Third Quarter 2024 Financial Performance
Slide 8: Financial Performance - Q3 2024
Financial Performance - Q3 2024 Third Quarter Financial Results Third Third Quarter Quarter $ % ($ in millions) 2024 2023 Change Change Ecovyst Sales 179.2 173.3 5.9 3.4 Zeolyst Joint Venture Sales 30.9 37.0 (6.1) (16.5) Net Income 14.3 16.6 (2.3) (13.9) Net Income Margin (%) 8.0 9.6 (160 bps) Adjus
Slide 9: Adjusted EBITDA Bridge - Q3 2024
Adjusted EBITDA Bridge - Q3 2024 Decrease in Q3 '24 Adjusted EBITDA primarily driven by volume and higher manufacturing and SG&A costs $3.0 ~$0 ~$0 $0.1 1,2 32.3% 28.5%1,2 ($3.7) ($7.5) 1 1 1. See Appendix for Reconciliations of non-GAAP measures 2. Adjusted EBITDA Margin calculation includes propor
Slide 10: Ecoservices - Q3 2024 Financial Performance
Ecoservices - Q3 2024 Financial Performance Third Third Quarter Quarter $ % ($ in millions) 2024 2023 Change Change Sales 153.9 147.6 6.3 4.3 Adjusted EBITDA1 55.1 54.7 0.4 0.7 Adjusted EBITDA Margin1 (%) 35.8 37.1 (130 bps) YTD Capital Expenditures2 42.1 44.0 Highlights • Sales benefited from highe
Slide 11: Advanced Materials & Catalysts - Q3 2024 Financial Performance
Advanced Materials & Catalysts - Q3 2024 Financial Performance Third Third Quarter Quarter $ % ($ in millions) 2024 2023 Change Change Advanced Silicas Sales 25.3 25.7 (0.4) (1.6) Zeolyst Joint Venture Sales 30.9 37.0 (6.1) (16.5) Adjusted EBITDA1 10.9 16.4 (5.5) (33.5) Adjusted EBITDA Margin1,2 (%)
Slide 12: Cash & Leverage
Cash & Leverage Strong Free Cash Flow Provides for Capital Allocation Flexibility Adjusted Free Cash Flow 1 Net Debt Leverage Ratio2 Share repurchases 4 $85.0 3.2x 3.3x 3.2x 3.0x 2.9x $72.3 $59.3 $75.0 $19.8 2023 Sep YTD Sep YTD FY 2024 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 2023 2024 Guidance Cash Generatio
Slide 13: Ecovyst 2024 Outlook
Ecovyst 2024 Outlook ($ in millions, 2023 2024 except per share) Actual Outlook Sales1 $691 $700 - $740 Zeolyst Joint Venture Sales $157 $115 - $135 Adjusted EBITDA2 $260 $230 - $245 Adjusted Free Cash Flow2 $72 $75 - $85 Capital Expenditures $65 $70 - $80 Interest Expense $45 $48 - $52 Depreciation
Slide 14: Summary
Summary Ecoservices continues to exhibit resilience, with positive year-over-year 1 volume trends for virgin sulfuric acid and Chem32 and the benefits of contractual price increases in regeneration services For Advanced Silicas, continue to expect sales of polyethylene catalysts to 2 be up year-over
Slide 15: Appendix
APPENDIX
Slide 16: Annual Segment Sales, Adjusted EBITDA and Margins
Annual Segment Sales, Adjusted EBITDA and Margins Trailing Twelve Months Ended (TTM) Year Ended December 31, ($ in millions, except %) September 30, 2024 2023 2022 2021 2020 Sales: Ecoservices 590.8 584.8 702.5 500.5 401.9 Advanced Silicas 104.5 106.3 117.7 110.7 94.0 Total sales 695.3 691.1 820.2 6
Slide 17: Quarterly Segment Sales, Adjusted EBITDA and Margins
Quarterly Segment Sales, Adjusted EBITDA and Margins Nine Months Nine Months Three Months Ended Ended Three Months Ended Ended March 31, June 30, September 30, September 30, March 31, June 30, September 30, September 30, ($ in millions, except %) 2024 2024 2024 2024 2023 2023 2023 2023 Sales: Ecoser
Slide 18: Sales and Adjusted EBITDA Major Change Factors
Sales and Adjusted EBITDA Major Change Factors Sales Three Months Ended September 30, 2024 Nine Months Ended September 30, 2024 Sales Advanced Advanced (in $ millions and %) Ecovyst Ecoservices Silicas Ecovyst Ecoservices Silicas Sales: $ % $ % $ % $ % $ % $ % Volume 2.9 1.7 3.3 2.2 (0.4) (1.6) 34.2
Slide 19: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Three Months Ended TTM Year Ended September 30, September 30, December 31, December 31, December 31, December 31, ($ in millions, except %) 2024 2024 2023 2022 2021 2020 Reconciliation of net income to Adjusted EBITDA Net income 14.3 53.8 71.2 69.8 1.8
Slide 20: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Twelve Months Three Months Ended TTM Three Months Ended Ended March 31, June 30, September 30, September 30, March 31, June 30, September 30, December 31, December 31, ($ in millions, except %) 2024 2024 2024 2024 2023 2023 2023 2023 2023 Reconciliatio
Slide 21: Descriptions for reconciliation of Non-GAAP financial measures
Descriptions for reconciliation of Non-GAAP financial measures (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% propor
Slide 22: Adjusted Free Cash Flow
Adjusted Free Cash Flow Full Year Nine months ended Nine months ended ($ in millions) 2023 September 30, 2023 September 30, 2024 Net cash provided by operating activities 137.6 73.4 106.4 Less: Purchases of property, plant and equipment1 65.3 53.6 51.7 Free Cash Flow 72.3 19.8 54.7 Cash paid for deb
Slide 23: Net Debt Leverage Ratio
Net Debt Leverage Ratio ($ in millions, except %) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Total debt 879.8 877.5 875.3 873.0 873.0 Less: Cash and cash equivalents 38.3 88.4 103.1 83.3 123.5 Net debt 841.5 789.1 772.2 789.7 749.5 Net income 62.7 71.2 73.9 56.1 53.8 Adjusted EBITDA 259.3 259.9 262.5 2
Slide 24: Accelerating the transition to a sustainability-driven future
Accelerating the transition to a sustainability-driven future