Ecovyst Inc. · NYSE:ECVT
Ecovyst — Q1 2019 Earnings Presentation
23 slides from Ecovyst's earnings presentation, May 9, 2019
Slide 1: First Quarter 2019 Investor Presentation
First Quarter 2019 May 9, 2019 – 11:00 AM ET INVESTOR PRESENTATION 1
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 2019 Highlights
FIRST QUARTER 2019 HIGHLIGHTS STRATEGIC BUSINESS HIGHLIGHTS FINANCIAL HIGHLIGHTS Solid Q1 performance Progressing on safety target o Sales of $359 million; Adjusted EBITDA of $101 million with Adjusted EBITDA Margin Advancing portfolio strategy of 26.0%1 Enhancing commercial activities o Business op
Slide 4: Macro Industry Trends
MACRO INDUSTRY TRENDS Expected Secular Growth Drivers Across Our Businesses Turbocharged Engines Heavy Duty Diesel Emissions Silicates & Silicas +7% +2x +2 – 3% North America CAGR Global catalyst Global CAGR from 2018 – 2025; consumption growth between consumption from turbo vehicles rise to 2020 –
Slide 5: First Quarter 2019 Financial Results
FIRST QUARTER 2019 FINANCIAL RESULTS Solid Start with Operating Performance on Track First First % Quarter Quarter $ % Constant ($ in millions) 2019 2018 Change Change Currency Sales 359.2 366.2 (7.0) (1.9%) 1.4% Adjusted EBITDA 101.0 107.9 (6.9) (6.4%) (3.8%) Adjusted EBITDA 26.0% 26.7% (70 bps) Ma
Slide 6: Refining Services
REFINING SERVICES Continued Growth from Higher Pricing % First Quarter First Quarter $ % Constant ($ in millions) 2019 2018 Change Change Currency Sales 105.8 100.7 5.1 5.1% 5.1% Adjusted EBITDA 39.7 35.5 4.2 11.8% 11.8% Adjusted EBITDA 37.5% 35.3% 220 bps Margin Q1 Change Factors Sales: % o Sales g
Slide 7: Catalysts
CATALYSTS Lower Zeolyst JV Results on Order Timing but Margins Remain Strong % First Quarter First Quarter $ % Constant ($ in millions) 2019 2018 Change Change Currency Sales Silica Catalysts 15.9 16.5 (0.6) (3.6%) — Zeolyst JV 29.5 38.3 (8.8) (23.0%) (23.0%) Adjusted EBITDA 18.1 22.9 (4.8) (21.0%)
Slide 8: Performance Materials
PERFORMANCE MATERIALS Pricing Drives Sales Growth % First Quarter First Quarter $ % Constant ($ in millions) 2019 2018 Change Change Currency Sales 61.1 62.7 (1.6) (2.6%) 2.6% Adjusted EBITDA 10.5 12.1 (1.6) (13.2%) (10.7%) Adjusted EBITDA 17.2% 19.3% (210 bps) Margin Q1 Change Factors o Sales incre
Slide 9: Performance Chemicals
PERFORMANCE CHEMICALS Results In Line on a Constant Currency Basis % First Quarter First Quarter $ % Constant ($ in millions) 2019 2018 Change Change Currency Sales 180.5 190.0 (9.5) (5.0%) (0.5%) Adjusted EBITDA 42.7 45.1 (2.4) (5.3%) (0.4%) Adjusted EBITDA 23.7% 23.7% — Margin Q1 Change Factors o
Slide 10: 2019 Guidance
2019 GUIDANCE Reiterating 2019 Guidance; Adjusted Free Cash Flow of $125 Million to $145 Million 2018 2019 ($ in millions except %) Actual Outlook Sales 1,608.2 1,640 – 1,670 Adjusted EBITDA 464.0 470 – 485 Adjusted Free Cash Flow 134.2 125 – 145 Adjusted Diluted EPS $0.87 $0.75 - $0.93 Interest Exp
Slide 11: Silica Catalysts
SILICA CATALYSTS A Leading Global Supplier of Silica Catalysts for Polyethylene (PE) and Methyl Methacrylate (MMA) Manufacturing Site* Global Footprint Silica Catalysts R&D Site Conshohocken, PA Warrington, UK Rahway, Kansas City, NJ S. Korea * KS Polyolefin Chemical Catalysts (~80%): Catalysts (~20
Slide 12: Silica Catalysts – PE and MMA
SILICA CATALYSTS – PE and MMA 2019 Expected Growth Steady from PE, with Step-Change from MMA Refill POLYETHYLENE METHYL METHACRYLATE HDPE/LLDPE Projected Capacity Expansions1 Global Consumption End Uses 120 100 Polymethylmethacrylate (PMMA) Million MT Other 80 (e.g. acrylic sheets, molding Solution
Slide 13: Portfolio Strengths and Priorities
PORTFOLIO STRENGTHS AND PRIORITIES Drive Shareholder Value KEY VALUE DRIVERS Profitable COMPETITIVE ADVANTAGES Growth Unique portfolio of businesses Capital Leading positions in Commercial Intensity secular growth markets Efficiency Innovation potential Free Cash Flow 13
Slide 14: Appendix
APPENDIX Q recreation y ~~
Slide 15: Adjusted Free Cash Flow
ADJUSTED FREE CASH FLOW First Quarter 2019 Versus 2018 Q1 Q1 ($ in millions) 2019 2018 Cash Flow from Operations before interest and tax 54.9 43.0 Less: Cash paid for taxes 4.4 4.4 Cash paid for interest1 23.7 16.6 Cash Flow from Operations 26.8 22.0 Less: Purchases of property, plant and equipment2
Slide 16: Supplemental Information
SUPPLEMENTAL INFORMATION First Quarter 2019 Capital Expenditures, Capitalization and Sales by End Use CAPITAL EXPENDITURES1 March 31, March 31, ($ in millions) 2019 2018 % OF SALES GROWTH BY END USE 4 Maintenance2 26.8 28.6 Fuels & Emissions Controls ( 4%) Growth3 6.8 4.7 Highway Safety & Constructi
Slide 17: Quarterly Segment Sales and Adjusted EBITDA
QUARTERLY SEGMENT SALES AND ADJUSTED EBITDA First Quarter 2019 and Year 2018 Three Months Ended For the Quarter Ended Three Months Ended Year Ended December 31, March 31, March 31, June 30, September 30, ($ in millions except %, unaudited) 2019 2018 2018 2018 2018 December 31, 2018 Sales: Refining S
Slide 18: Sales and Adjusted EBITDA Major Change Factors
SALES AND ADJUSTED EBITDA MAJOR CHANGE FACTORS First Quarter 2019 SALES Three months ended March 31, 2019 Sales PQ Group Refining Performance Performance (in $ millions and %) Holdings Inc. Services Catalysts Materials Chemicals Sales: $ % $ % $ % $ % $ % Volume (12.7) (3.4) (3.5) (3.4) (0.9) (5.2)
Slide 19: Reconciliation of Net Income to Segment Adjusted EBITDA
RECONCILATION OF NET INCOME TO SEGMENT ADJUSTED EBITDA First Quarter 2019 and Year 2018 Three Months Ended Three Months Ended Year Ended March 31, March 31, June 30, September 30, December 31, December 31, ($ in millions) 2019 2018 2018 2018 2018 2018 Reconciliation of net income (loss) attributable
Slide 20: Reconciliation of Net Income to Adjusted Net Income and EPS
RECONCILATION OF QUARTERLY NET INCOME TO ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE First Quarter 2019 and Year 2018 For the Quarter Ended Three Months Ended Three Months Ended Year Ended March 31, March 31, June 30, September 30, December 31, December 31, ($ in millions except per
Slide 21: 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 our Zeolyst Joint Venture, we include an adjustment for our 50% p
Slide 22: Constant Currency Sales and Adjusted EBITDA
CONSTANT CURRENCY SALES AND ADJUSTED EBITDA First Quarter 2019 Versus 2018 Three Months Three Months Ended Ended March 31, 2019 March 31, 2018 Constant Constant Currency % ($ in millions except %, unaudited) As Reported FX Impact Currency As Reported Change Sales: $ $ $ $ % Refining Services 105.8 —
Slide 23: PQ Corporation
PQ Corporation 23