Ecovyst Inc. · NYSE:ECVT
Ecovyst — PQ Group Holdings — Q1 2020 Earnings Presentation
22 slides from Ecovyst's earnings presentation, May 5, 2020
Slide 1: First Quarter 2020 Investor Presentation
First Quarter 2020 May 5, 2020 – 11:00 AM ET INVESTOR PRESENTATION
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: First Quarter 2020 Overview
FIRST QUARTER 2020 OVERVIEW Safety o Adapted all operations to new health requirements and practices o Recordable Injury rate improved 65% and 60% respectively versus first quarter and full year 2019 Solid Q1 earnings performance driven by portfolio diversity o Minimal impact from COVID-19 o Sales u
Slide 4: COVID-19 Operations Update
COVID-19 OPERATIONS UPDATE Safety and o Implemented practices in compliance with global health authorities Containment o Restricted business travel and work from home for all who can work remotely o Supplied necessary protective equipment and clear guidelines for hygiene best practices and social di
Slide 5: COVID-19 Impacts: Anticipated Near Term Trends for Business End Uses
COVID-19 IMPACTS: Anticipated Near Term Trends for Business End Uses Refining Services1 Sulfuric acid regeneration materially impacted due to lower refinery rates on high gasoline inventories driven by significant decline in gasoline demand due to government 43% “stay home” mandates 57% Virgin sulfu
Slide 6: 2020 Financial Results
2020 FINANCIAL RESULTS % First Quarter First Quarter $ % Constant ($ in millions) 2020 2019 Change Change Currency Sales 361.6 359.2 2.4 0.7% 2.3% Adjusted EBITDA 103.1 101.0 2.1 2.1% 3.3% Adjusted EBITDA 26.2% 26.0% 20 bps Margin1 (1) Adjusted EBITDA margin calculation includes proportionate 50% sh
Slide 7: Refining Services
REFINING SERVICES % First Quarter First Quarter $ % Constant ($ in millions) 2020 2019 Change Change Currency Sales 100.7 105.8 (5.1) (4.8%) (4.8%) Adjusted EBITDA 37.2 39.7 (2.5) (6.3%) (6.3%) Adjusted EBITDA 36.9% 37.5% (60 bps) Margin o Sales decreased on the pass-through of lower Q1 Change Facto
Slide 8: Catalysts
CATALYSTS % First Quarter First Quarter $ % Constant ($ in millions) 2020 2019 Change Change Currency Sales Silica Catalysts 24.9 15.9 9.0 56.6% 57.9% Zeolyst JV 32.3 29.5 2.8 9.6% 9.6% Adjusted EBITDA 22.7 18.1 4.6 25.4% 26.0% Adjusted EBITDA 39.7% 40.0% (30 bps) Margin1 o Silica Catalysts sales in
Slide 9: Performance Materials
PERFORMANCE MATERIALS % First Quarter First Quarter $ % Constant ($ in millions) 2020 2019 Change Change Currency Sales 65.5 61.1 4.4 7.2% 9.5% Adjusted EBITDA 13.5 10.5 3.0 28.6% 29.5% Adjusted EBITDA 20.6% 17.2% 340 bps Margin o Sales increased on higher demand for North Q1 Change Factors American
Slide 10: Performance Chemicals
PERFORMANCE CHEMICALS % First Quarter First Quarter $ % Constant ($ in millions) 2020 2019 Change Change Currency Sales 174.3 180.5 (6.2) (3.4%) (1.1%) Adjusted EBITDA 40.5 42.7 (2.2) (5.2%) (2.8%) Adjusted EBITDA 23.2% 23.7% (50 bps) Margin o Sales and adjusted EBITDA declined on slower global dema
Slide 11: Adjusted Free Cash Flow & Debt Maturity
ADJUSTED FREE CASH FLOW & DEBT MATURITY First First Quarter Quarter ($ in millions) 2020 2019 o Cash on hand of $108 million Cash Flow from Operations before interest and tax 34.8 54.9 with $236 million available liquidity at quarter end Less: Cash paid for taxes 10.3 4.4 Less: Cash paid for interes
Slide 12: 2020 Outlook
2020 OUTLOOK Segment Risk Key Drivers Q2 Gasoline inventories, miles o Sales $360 to $375 million Refining Services driven & oil prices o Adjusted EBITDA $95 to $105 million Polyethylene demand, refills & Catalysts top-off timing Highway safety demand outside Performance Materials of North America L
Slide 13: Ongoing Portfolio Optimization Strategy
ONGOING PORTFOLIO OPTIMIZATION STRATEGY 2018 – 2019 2020 Assessing opportunities to optimize overall portfolio Monetizing non-core assets within each business at value o Performance Materials asset swap o Sale of o Completed Performance o Refining Services non-core asset sale non-core Chemicals o Co
Slide 14: Forward Priorities
FORWARD PRIORITIES Maintain safety and well being of employees Optimize operations to flex with customer demand Supplement current liquidity through reductions of capital and discretionary spend Execute portfolio optimization activities 14
Slide 15: Appendix
APPENDIX Q recreation y ~~
Slide 16: Quarterly Segment Sales, Adjusted EBITDA and Margins
QUARTERLY SEGMENT SALES, ADJUSTED EBITDA AND MARGINS First Quarter 2020 and Year 2019 Three Months For the Quarter Ended Ended Three Months Ended Year Ended March 31, September 30, December 31, December 31, ($ in millions except %, unaudited) 2020 March 31, 2019 June 30, 2019 2019 2019 2019 Sales: R
Slide 17: Sales and Adjusted EBITDA Major Change Factors
SALES AND ADJUSTED EBITDA MAJOR CHANGE FACTORS First Quarter 2020 SALES Three Months Ended March 31, 2020 Sales PQ Group Performance Performance (in $ millions and %) Holdings Inc. Refining Services Catalysts Materials Chemicals Sales: $ % $ % $ % $ % $ % Volume 11.8 3.3 2.1 2.0 9.0 56.6 4.8 7.9 (4.
Slide 18: Reconciliation of Net Income to Segment Adjusted EBITDA
RECONCILIATION OF NET INCOME TO SEGMENT ADJUSTED EBITDA First Quarter 2020 and Year 2019 Three Months Ended Three Months Ended Year Ended September 30, December 31, December 31, ($ in millions) March 31, 2020 March 31, 2019 June 30, 2019 2019 2019 2019 Reconciliation of net income attributable to PQ
Slide 19: Reconciliation of Quarterly Net Income to Adjusted Net Income and EPS
RECONCILIATION OF QUARTERLY NET INCOME TO ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE First Quarter 2020 and Year 2019 Three Months Ended Three Months Ended Year Ended March 31, March 31, September 30, December 31, December 31, ($ in millions except share and per share data) 2020 201
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 the 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 First Quarter 2020 Versus 2019 Three Months Three Months Ended Ended March 31, March 31, 2020 2019 Constant ($ in millions except %, Constant Currency % unaudited) As Reported FX Impact Currency As Reported Change Sales: $ $ $ $ % Refining Services 100.7 —
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