Ecovyst Inc. · NYSE:ECVT
Ecovyst — Q1 2022 Earnings Presentation
26 slides from Ecovyst's earnings presentation, Apr 28, 2022
Slide 1: First Quarter 2022
First Quarter 2022 April 28, 2022—5 pm ET YOUR CATALYST FOR POSITIVE CHANGE ™
Slide 2: Legal Discussion
Legal Discussion Continuing Operations Financial results for are presented on a continuing operations basis, which excludes the Performance Materials business and Performance Chemicals business unless otherwise indicated. Forward‐Looking Statements Some of the information contained in this presentat
Slide 3: Key Messages
Key Messages 1 Leadership team modernized to drive growth in business 2 Strong financial performance on robust Sales and EBITDA growth 3 Continued development of sustainable solutions driving growth trends Positioned to increase shareholder returns through return of capital and bolt‐ 4 on acquisitio
Slide 4: Ecovyst Leadership Team
Ecovyst Leadership Team Kurt J. Bitting Tom Schneberger Mike Feehan Kevin M. Fogarty Chief Executive Officer President Chief Financial Officer Chairman of the and Director Board of Directors1 1.Non‐executive chairman FIRST QUARTER EARNINGS 2022 / 4
Slide 5: Delivered Strong Operating and Financial Performance
Delivered Strong Operating and Financial Performance Q1 2022 Key Highlights1,2 34% 40% 74% Sales Growth Adj. EBITDA Growth Cash vs. 20211 vs. 20211,2 Conversion3,4 3.1x 85% 0.11 Leverage Ratio5 Current R&D focused Recordable on Sustainability Safety Rate4 1. Sales change percentage and Adjusted EBIT
Slide 6: Ecovyst is well positioned in this geopolitical environment
Ecovyst is well positioned in this geopolitical environment 1 Inflation offers tailwind due to customer contract structure 2 Geopolitical uncertainty may benefit customer demand 3 Strong order backlog expected to drive continued growth in Q2 4 5 FIRST QUARTER EARNINGS 2022 / 6
Slide 7: Catalyst Technologies: Robust recovery amid inflation volatility
Robust recovery amid inflation volatility and geopolitical uncertainty 2021 Demand Trend Industry End Key % Q1 ‘22 Q2 ’22E Growth 2022 Anticipated Demand Drivers Use Products Total vs Q4 ‘21 vs Q1 ‘22 Rate Sales CLEAN FUELS Regeneration Rebounding gasoline demand and exports ~32% ~5% for Alkylation
Slide 8: Driving Meaningful Sustainability Improvement
Driving Meaningful Sustainability Improvement Global Our products Sustainability Trend provide solutions that… …Remove sulfur and NOx emission Clean Air from heavy duty transport …Support materials for low carbon electric technology …Create more durable and lighter Plastics weight plastics Circulari
Slide 9: First Quarter 2022 Financial Performance
First Quarter 2022 Financial Performance
Slide 10: Financial Performance - Q1 2022 First Quarter Financial Results
Financial Performance ‐ Q1 2022 First Quarter Financial Results First Quarter First Quarter $ % ($ in millions) 2022 2021 Change Change Ecovyst Sales 179.7 126.6 53.1 42.0 Zeolyst JV Sales 29.0 29.0 0.0 0.0 Adjusted EBITDA1 59.2 42.3 17.0 40.1 Adjusted EBITDA Margin1,2 (%) 28.4 27.2 120 bps $ % ($ i
Slide 11: Adjusted EBITDA Bridge – Q1 2022
Adjusted EBITDA Bridge – Q1 2022 Adjusted EBITDA margins 120bps higher despite impact from sulfur pass‐through High margin performance from proven pricing power and contractual cost pass‐through Positive price‐cost 28.4%1,2 EBITDA Impact ($MM) 27.2%1,2 1. See Appendix for Reconciliations of non‐GAAP
Slide 12: Ecoservices Highlights
Ecoservices First First Quarter Quarter $ % ($ in millions) 2022 2021 Change Change Sales Ecoservices 154.0 100.2 53.8 53.7 Adjusted EBITDA1 49.3 33.0 16.3 49.4 Adjusted EBITDA Margin1 (%) 32.0 32.9 (90 bps) Ecoservices Highlights • Higher pricing more than offset rising sulfur, labor and fixed inde
Slide 13: Catalyst Technologies Highlights
Catalyst Technologies First First Quarter Quarter $ % ($ in millions) 2022 2021 Change Change Silica Catalysts Sales 25.7 26.4 (0.7) (2.7) Zeolyst JV Sales 29.0 29.0 0.0 0.0 Adjusted EBITDA1 17.0 18.5 (1.5) (8.1) Adjusted EBITDA Margin1,2 (%) 31.1 33.4 (230) bps Catalyst Technologies Highlights • Co
Slide 14: Affirming Ecovyst 2022 Outlook
Affirming Ecovyst 2022 Outlook Ecovyst1 Q4 2021 Q1 2022 ($ in millions, 2021 Prior Updated except per share) Actual Guidance Outlook Sales2 $611 $730 – 750 $810 ‐$830 Impact of Sulfur Price pass‐through Zeolyst JV Sales $131 $150 – 160 $150 – 160 Adjusted EBITDA3 $228 $260 – 270 $260 – 270 Adjusted
Slide 15: Leverage & Liquidity
Leverage & Liquidity Ecovyst increased Liquidity while reducing Leverage Leverage Ratio Liquidity1 ($Millions) 3.8 3.3 $203 $207 3.1 $165 Q3‐2021 Q4‐2021 Q1‐2022 Q3‐2021 Q4‐2021 Q1‐2022 Leverage Ratio Liquidity • Reduction of 0.7x turns since sale of Performance • 24% increase in Liquidity since sal
Slide 16: Ecovyst Positioned for Shareholder Returns & Bolt-On M&A
Ecovyst Positioned for Shareholder Returns & Bolt‐On M&A Consistently growing free cash flow profile Capital Allocation Strategy provides flexibility and enables balanced capital allocation strategy • Deleveraged to 3.1x Cash Flow from Operations • Growing FCF Less: Maintenance Capex Capital investm
Slide 17: Key Messages
Key Messages 1 Leadership team modernized to drive growth in business 2 Strong financial performance on robust Sales and EBITDA growth 3 Continued development of sustainable solutions driving growth trends Positioned to increase shareholder returns through return of capital and bolt‐ 4 on acquisitio
Slide 18: Appendix
APPENDIX
Slide 19: Ecoservices: North American Leader in Sulfuric Acid Recycling
Ecoservices: North American Leader in Sulfuric Acid Recycling and Related Services with Key Competitive Position in Gulf Coast and California NEAR‐TERM GROWTH FACTORS • New long‐term large customer contract, existing customer re‐contracting, and favorable alkylate fundamentals expected to drive mid‐
Slide 20: Catalyst Technologies: Global Leader in Tailored Catalyst Solutions
Catalyst Technologies: Global Leader in Tailored Catalyst Solutions NEAR‐TERM GROWTH FACTORS • Preferred technology and increasing product offerings projected to drive high single digit growth in Clean Fuels & Air, Engineered Polymers, and Custom Catalyst • New product launches planned in 2022 suppo
Slide 21: Quarterly Segment Sales, Adjusted EBITDA and Margins
Quarterly Segment Sales, Adjusted EBITDA and Margins Three Twelve Months Months Ended Three Months Ended Ended March 31, March 31, June 30, September December December ($ in millions, except %) 2022 2021 2021 30, 2021 31, 2021 31, 2021 Sales: Ecoservices 154.0 100.2 120.8 137.5 142.0 500.5 Silica Ca
Slide 22: Sales and Adjusted EBITDA Major Change Factors
Sales and Adjusted EBITDA Major Change Factors Sales Three Months Ended March 31, 2022 Sales Silica (in $ millions and %) Ecovyst Ecoservices Catalysts Sales: $ % $ % $ % Volume 13.8 10.9 16.5 16.5 (2.7) (10.4) Price 39.5 31.2 37.3 37.2 2.2 8.4 Currency (0.2) (0.2) — — (0.2) (0.8) Sales Change 53.1
Slide 23: Reconciliation of Net (Loss) Income to Segment Adjusted EBITDA
Reconciliation of Net (Loss) Income to Segment Adjusted EBITDA Three Twelve Months Months Ended Three Months Ended Ended March 31, March 31, June 30, September December December ($ in millions, except %) 2022 2021 2021 30, 2021 31, 2021 31, 2021 Reconciliation of net (loss) income from continuing op
Slide 24: Adjusted Free Cash Flow
Adjusted Free Cash Flow Full Year Three Months Ended ($ in millions) 20211 March 31, 2022 Cash Flow from Operations before interest and tax 200.7 25.5 Less: Cash paid for taxes 11.8 10.7 Less: Cash paid for interest2 59.0 8.4 Cash Flow from Operations 129.9 6.4 Less: Purchases of property, plant and
Slide 25: 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 the Catalyst Technologies segment includes our 50% interest in the Zeolyst Joint Venture, we include an adjustment for our 50% proportionate sh
Slide 26: Your Catalyst for Positive Change
YOUR CATALYST FOR POSITIVE CHANGE ™