Ecovyst Inc. · NYSE:ECVT
Ecovyst — PQ Group Holdings — Q3 2017 Earnings Presentation
15 slides from Ecovyst's earnings presentation, 2017
Slide 1: 2017 3rd Quarter Results
te) PQ Corporation Te} PQ Corporation 2017 3 Quarter Results
Slide 2: Non-GAAP Financial Measures
Non-GAAP Financial Measures Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures, including constant currency sales, Adjusted EBITDA, constant currency Adjusted EBITDA, Adjusted EBITDA margin, adjusted net income, adjusted diluted EPS, free cash flow and adjuste
Slide 3: Forward-Looking Statements
Forward-Looking Statements 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
Slide 4: Third Quarter 2017 Highlights
Third Quarter 2017 Highlights • Sales grew nearly 6% in 3Q; Adjusted EBITDA grew 5.5% • Net loss of ($3.4) million improved $6.6 million versus the prior year quarter • First full quarter results of complementary acquisition in Performance Materials; integration well under way • Commercial acceptanc
Slide 5: Third Quarter Net Sales and Zeolyst Joint Venture Net Sales
Third Quarter Net Sales and Zeolyst Joint Venture Net Sales Commentary End Uses1 • Fuels & Emission Controls Quarter over Quarter % Change – Higher regeneration services pricing and continued emission control Fuels & Emission Controls + 16% volume growth Highway Safety & Construction + 12% • Highway
Slide 6: Financial Highlights
Financial Highlights Commentary • Third quarter sales of $391.8MM increased $21.8MM, or 5.9% driven by the June’17 Sovitec acquisition and higher pricing from regeneration services contract renewals • Net loss attributable to PQ Group Holdings Inc. of ($3.4MM) improved by $6.6MM; EPS was ($0.03) com
Slide 7: Environmental Catalyst & Services
Environmental Catalyst & Services Commentary • Regeneration services contract renewals produced a 1.1% growth in top line sales, partially offset by lower methyl methacrylate sales and the impact of Hurricane Harvey of $5.6MM • Zeolyst JV sales grew over 30% on continued high demand for hydrocrackin
Slide 8: Performance Materials & Chemicals
Performance Materials & Chemicals Commentary • Sovitec acquisition complementary to our existing Performance Materials product group end uses; allowing for future growth and margin expansion • Favorable commercial acceptance of the new Thermodrop® product launched in 2Q 2017 • Quarterly sales grew 8
Slide 9: Cash Flow – Year-to-date
Cash Flow – Year-to-date 2017 2016 ($ in millions) Actual Pro Forma 2 Variance • Annual cash interest expected to decline by $67MM3 Cash Flow from Operations before Interest and Tax 249.6 199.0 50.6 post IPO Less: • $380MM NOL Cash paid for taxes (21.0) (14.8) (6.2) carry-forward limits Cash paid fo
Slide 10: Debt and Liquidity
Debt and Liquidity Capitalization Net Debt to Adjusted EBITDA 1 (in millions) Q3 2017 Pro forma 5.95 4.94 Cash 68.8 68.8 Debt: ABL 35.0 35.0 Senior Secured Term Loan Facilities 1,249.9 1,249.9 Senior Secured Notes 625.0 625.0 Unsecured Floating Notes 525.0 78.8 Unsecured Notes 200.0 200.0 Q3'17 Q3'1
Slide 11: Full Year 2017 Guidance
Full Year 2017 Guidance ($ in millions) Net Sales (including Zeolyst JV) $1,585 ‐ $1,605 Adjusted EBITDA $447 ‐ $453 Depreciation $120 ‐ $125 Amortization $53 ‐ $55 Interest Expense $176 ‐ $178 Capital Expenditures $140 ‐ $150 Weighted Average Diluted Shares1 108.8 million (1) The weighted average d
Slide 12: Appendix
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Slide 13: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Historical Pro Forma Three months ended Nine months ended September 30, September 30, (in millions) 2017 2016 2017 2016 Reconciliation of net loss to Adjusted EBITDA Net loss attributable to PQ Group Holdings Inc. and Subsidiaries $ (3.4) $ (10.0) $ (7.4
Slide 14: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Historical Pro Forma Three months ended Nine months ended September 30, September 30, (in millions) 2017 2016 2017 2016 Reconciliation of net loss to adjusted net income Net loss attributable to PQ Group Holdings Inc. and Subsidiaries $ (3.4) $ (10.0) $
Slide 15: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures a) We use Adjusted EBITDA, adjusted net income, and adjusted diluted EPS, as a performance measure to evaluate our financial results. Because our environmental catalysts and services segment includes our 50% interest in our Zeolyst Joint Venture, we incl