Ecovyst Inc. · NYSE:ECVT
Ecovyst — Q1 2024 Earnings Presentation
26 slides from Ecovyst's earnings presentation, May 2, 2024
Slide 1: First Quarter 2024
First Quarter 2024 May 2, 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
Key Messages Ecoservices Q1'24 sales volume up for both virgin sulfuric acid and 1 regeneration services, compared to Q1'23 in which sales were limited by Winter Storm Elliott and an extended turnaround 2 Sales for Zeolyst Joint Venture up 6% on higher sales of catalysts for sustainable fuel product
Slide 5: Q1 2024 Key Highlights
Key Highlights Q1 2024 Key Highlights $161 Mln $46 Mln 25% GAAP Sales Adj. EBITDA Adj. EBITDA Margin Q1 2024 Q1 20241 Q1 20241,2 2.9x 75% $173 Mln Net Debt Leverage Cash Liquidity5 Ratio1,4 Conversion1,3 1. See Appendix for Reconciliations of non-GAAP measures 2. Adjusted EBITDA margin calculation i
Slide 6: Demand Trends and Drivers
Demand Trends and Drivers Sources: EIA, S&P, LMC, CMA, Bloomberg, Management Estimates FIRST QUARTER EARNINGS 2024 / 6
Slide 7: First Quarter 2024 Financial Performance
First Quarter 2024 Financial Performance
Slide 8: Financial Performance - Q1 2024
Financial Performance - Q1 2024 First Quarter Financial Results First First Quarter Quarter $ % ($ in millions) 2024 2023 Change Change Ecovyst Sales 160.5 160.9 (0.4) (0.2) Zeolyst Joint Venture Sales 23.5 22.1 1.4 6.3 Net Income (Loss) 1.2 (1.5) 2.7 180.0 Net Income Margin (%) 0.7 (0.9) NM Adjuste
Slide 9: Adjusted EBITDA Bridge - Q1 2024
Adjusted EBITDA Bridge - Q1 2024 Increase in Q1'24 Adjusted EBITDA primarily driven by volume and net pricing 24.7%1,2 1,2 23.4% Positive price-cost 1. See Appendix for Reconciliations of non-GAAP measures 2. Adjusted EBITDA margin calculation includes proportionate 50% share of sales from the Zeoly
Slide 10: Ecoservices - Q1 2024 Financial Performance
Ecoservices - Q1 2024 Financial Performance First First Quarter Quarter $ % ($ in millions) 2024 2023 Change Change Sales 141.6 137.8 3.8 2.8 Adjusted EBITDA1 41.5 36.8 4.7 12.8 Adjusted EBITDA Margin1 (%) 29.3 26.7 260 bps Highlights • First quarter sales reflect higher sales volume for virgin sulf
Slide 11: Advanced Materials & Catalysts - Q1 2024 Financial Performance
Advanced Materials & Catalysts - Q1 2024 Financial Performance First First Quarter Quarter $ % ($ in millions) 2024 2023 Change Change Advanced Silicas Sales 18.9 23.1 (4.2) (18.2) Zeolyst Joint Venture Sales 23.5 22.1 1.4 6.3 Adjusted EBITDA1 11.1 13.0 (1.9) (14.6) Adjusted EBITDA Margin1,2 (%) 26.
Slide 12: Cash & Leverage
Cash & Leverage Strong Cash Conversion Provides for Capital Allocation Flexibility Cash Conversion1 Net Debt Leverage Ratio2 Share repurchases 79% 75% 75% 3.2x 3.2x 3.2x 72% 71% 3.0x 2.9x 2020 2021 2022 2023 TTM Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q1'24 Cash Generation Leverage Ratio and Debt Profile • Co
Slide 13: Ecovyst 2024 Outlook
Ecovyst 2024 Outlook Ecovyst ($ in millions, 2023 2024 except per share) Actual Outlook Sales1 $691 $715-755 Zeolyst Joint Venture Sales $157 $145-$165 Adjusted EBITDA2 $260 $255-$275 Free Cash Flow2 $72 $85-$105 Capital Expenditures $65 $70-$80 Interest Expense $45 $45-$55 Depreciation & Amortizati
Slide 14: Summary
Summary 1 Portfolio diversity continued to provide stability; expect demand fundamentals across most end uses to remain positive in 2024 2 Expect improved global demand for polyethylene to provide for increased sales of polyethylene catalysts in 2024, with stronger sales in H2'24 3 Expect higher sal
Slide 15: Appendix
APPENDIX
Slide 16: Annual Segment Sales, Adjusted EBITDA and Margins
Annual Segment Sales, Adjusted EBITDA and Margins Trailing Twelve Months Ended (TTM) Year Ended December 31, ($ in millions, except %) March 31, 2024 2023 2022 2021 2020 Sales: Ecoservices 588.7 584.8 702.5 500.5 401.9 Advanced Silicas 102.0 106.3 117.7 110.7 94.0 Total sales 690.7 691.1 820.2 611.2
Slide 17: Ecoservices: North American Leader in Sulfuric Acid Recycling
Ecoservices: North American Leader in Sulfuric Acid Recycling and Related Services with Key Competitive Position in Gulf Coast and California ANTICIPATED FUTURE GROWTH FACTORS • Existing customer re-contracting, and favorable alkylate fundamentals expected to drive growth for regeneration services •
Slide 18: Advanced Materials & Catalysts: Global Leader in Tailored Catalyst Solutions
Advanced Materials & Catalysts: Global Leader in Tailored Catalyst Solutions ANTICIPATED FUTURE GROWTH FACTORS • Preferred technology and increasing product offerings for strengthening & light weighting of materials projected to drive growth in polyethylene catalysts • Growing demand for sustainable
Slide 19: Quarterly Segment Sales, Adjusted EBITDA and Margins
Quarterly Segment Sales, Adjusted EBITDA and Margins Three Months Ended ($ in millions, except %) March 31, 2024 March 31, 2023 Sales: Ecoservices 141.6 137.8 Advanced Silicas 18.9 23.1 Total sales 160.5 160.9 Zeolyst Joint Venture sales 23.5 22.1 Adjusted EBITDA: 1 Ecoservices 41.5 36.8 Advanced Ma
Slide 20: Sales and Adjusted EBITDA Major Change Factors
Sales and Adjusted EBITDA Major Change Factors Sales Three Months Ended March 31, 2024 Sales Advanced (in $ millions and %) Ecovyst Ecoservices Silicas Sales: $ % $ % $ % Volume 15.7 9.8 20.1 14.8 (4.4) (18.9) Price/Mix (16.1) (10.0) (16.3) (12.0) 0.2 0.7 Sales Change (0.4) (0.2) 3.8 2.8 (4.2) (18.2
Slide 21: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Three Months Ended TTM Year Ended December 31, December 31, December 31, December 31, ($ in millions, except %) March 31, 2024 March 31, 2024 2023 2022 2021 2020 Reconciliation of net income to Adjusted EBITDA Net income 1.2 73.9 71.2 69.8 1.8 54.3 Pro
Slide 22: Reconciliation of Net (Loss) Income to Adjusted EBITDA
Reconciliation of Net (Loss) Income to Adjusted EBITDA Three Months Twelve Months Ended TTM Three Months Ended Ended March 31, March 31, March 31, June 30, September 30, December 31, December 31, ($ in millions, except %) 2024 2024 2023 2023 2023 2023 2023 Reconciliation of net (loss) income to Adju
Slide 23: 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 24: Free Cash Flow
Free Cash Flow Full Year Three months ended ($ in millions) 2023 March 31, 2024 Net cash provided by operating activities 137.6 36.5 Less: Purchases of property, plant and equipment1 65.3 17.4 Free cash flow 72.3 19.1 Full Year Three months ended ($ in millions) 2023 March 31, 2024 Included in net c
Slide 25: Cash Conversion & Leverage
Cash Conversion & Leverage Cash Conversion TTM ($ in millions, except %) 2020 2021 2022 2023 Q1 2024 Adjusted EBITDA 192.6 227.6 276.8 259.9 262.5 1 Less: Capex 54.5 66.4 59.5 65.3 66.4 Cash Conversion 138.1 161.2 217.5 194.6 196.1 Cash Conversion %2 72% 71% 79% 75% 75% Net Debt Leverage Ratio ($ in
Slide 26: Accelerating the transition to a sustainability-driven future
Accelerating the transition to a sustainability-driven future