Stock Repurchase Program - Ecovyst's stock repurchase program authorized the repurchase of up to $450 million of common stock over four years, with $376.3 million remaining as of September 30, 2022[133]. - The company repurchased 1,970,763 shares at an average price of $9.82 per share for a total of $19.4 million from the program's announcement through September 30, 2022[133]. - The company is monitoring the impact of the Inflation Reduction Act of 2022, which imposes a 1% excise tax on net stock repurchases starting in 2023[133]. Financial Performance - Sales increased by $65.1 million to $232.5 million, representing a 38.9% growth compared to the same period in 2021[143]. - Gross profit rose by $14.1 million to $67.7 million, a 26.3% increase, driven by higher sales volumes and favorable pricing[144]. - Operating income increased by $16.0 million to $38.5 million, reflecting a 71.1% growth due to higher gross profit and lower selling, general, and administrative expenses[145]. - Net income attributable to Ecovyst was $21.3 million for the three months ended September 30, 2022, compared to a net loss of $71.3 million in the same period of 2021[160]. - Total sales increased by $196.4 million to $637.4 million for the nine months ended September 30, 2022, primarily due to higher sales volumes and average selling prices[171]. - Gross profit increased by $53.1 million to $175.3 million for the nine months ended September 30, 2022, driven by higher sales volume and favorable pricing[172]. - Operating income increased by $45.8 million to $82.4 million for the nine months ended September 30, 2022, attributed to increased gross profit and lower selling, general and administrative expenses[173]. - Net income from continuing operations was $21.3 million for the three months ended September 30, 2022, compared to $4.7 million in the same period of 2021[164]. - Net income attributable to Ecovyst was $48.4 million for the nine months ended September 30, 2022, compared to a net loss of $165.4 million for the same period in 2021[189]. Segment Performance - Sales in the Ecoservices and Catalyst Technologies segments have grown due to high demand, recovering from lows caused by the COVID-19 pandemic and extreme weather in 2021[136]. - Ecoservices sales reached $195.7 million, an increase of $58.2 million or 42.3%, primarily due to higher average selling prices and increased sales volumes[148]. - Catalyst Technologies sales were $36.8 million, up $6.9 million or 23.1%, driven by higher sales volumes despite unfavorable foreign exchange impacts[148]. - Adjusted EBITDA for Ecoservices segment increased by $12.2 million, or 23.5%, to $64.1 million for the three months ended September 30, 2022, compared to $51.9 million in the same period of 2021[162]. - Adjusted EBITDA for Catalyst Technologies segment decreased by $6.2 million, or 24.3%, to $19.3 million for the three months ended September 30, 2022, compared to $25.5 million in the same period of 2021[162]. - Ecoservices sales increased by $184.2 million or 51.4% to $542.7 million, driven by higher average selling prices and increased sales volumes[177]. Expenses and Income - Selling, general, and administrative expenses decreased by $3.3 million to $21.5 million, mainly due to a reduction in stock-based compensation expenses[151]. - Equity in net income of affiliated companies decreased to $3.2 million from $8.8 million, a decline of $5.6 million attributed to lower earnings from the Zeolyst Joint Venture[146]. - Adjusted net income for the three months ended September 30, 2022, was $42.4 million, compared to $31.1 million in the same period of 2021[168]. - Adjusted net income for the nine months ended September 30, 2022, was $109.9 million, compared to $64.7 million for the same period in 2021, reflecting an increase of 70%[198]. Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2022, totaled $121.4 million, with an additional $77.6 million available under the asset-based lending revolving credit facility, resulting in total available liquidity of $199.0 million[200]. - Net cash provided by operating activities for the nine months ended September 30, 2022, was $109.3 million, an increase from $92.3 million in the same period of 2021, reflecting a $41.1 million increase in cash generated from operations excluding working capital changes[205]. - Cash used in investing activities was $43.6 million for the nine months ended September 30, 2022, compared to cash provided of $892.9 million during the same period in 2021, primarily due to the divestiture of the Performance Chemicals business in 2021[205]. - Net cash used in financing activities was $82.6 million for the nine months ended September 30, 2022, a significant decrease from $963.5 million used in the same period of 2021, which included substantial debt repayments and a special dividend[207]. - Total debt as of September 30, 2022, was $888.8 million, a slight decrease from $895.5 million as of December 31, 2021, with net debt amounting to $767.4 million after accounting for cash and cash equivalents[208]. Tax and Interest - The effective tax rate for the three months ended September 30, 2022, was 29.6%, down from 35.6% in the same period of 2021[159]. - The effective tax rate for the nine months ended September 30, 2022, was 31.2%, compared to (610.9)% for the same period in 2021[188]. - Interest expense, net decreased by $1.3 million to $26.9 million, attributed to lower debt balances despite rising variable interest rates[183]. Future Outlook - The company expects ongoing requirements for debt service and capital expenditures to be funded from cash flows from operations and existing cash balances[200]. - The company may pursue strategic acquisition or divestiture opportunities, which could impact future cash requirements[200]. - The company may seek opportunities to repurchase, refinance, or reprice its debt, subject to market conditions[208].

Financial Data and Key Metrics Changes - Ecovyst reported total sales of $260 million for Q3 2022, an increase of $60 million or 30% compared to Q3 2021 [23] - Adjusted EBITDA for Q3 2022 was $75 million, up 9% year-over-year, with an associated margin of 29% [25] - Year-to-date sales increased nearly 45% and adjusted EBITDA rose 26% compared to the first nine months of 2021 [10] Business Line Data and Key Metrics Changes - Ecoservices sales reached $196 million in Q3 2022, up 42% year-over-year, driven by higher contract pricing and increased demand for Regeneration Services [28] - Catalyst Technologies reported sales of $64.6 million, a 3% increase compared to Q3 2021, but adjusted EBITDA decreased by $6 million due to a less favorable product sales mix [31] Market Data and Key Metrics Changes - The U.S. refining industry is experiencing high utilization rates, which is expected to continue driving demand for alkylate and Regeneration Services [15][16] - Demand for virgin sulfuric acid remains strong across various applications, including mining and production of green technologies [17][18] Company Strategy and Development Direction - Ecovyst aims to leverage sustainability trends and projected growth in low-carbon technologies [6] - The company is focused on growing its Ecoservices and Catalyst Technologies businesses, with a strong emphasis on high-quality, uniquely positioned markets [42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength and stability of the business, expecting to achieve the high end of the adjusted EBITDA guidance range for 2022 [14][43] - Despite potential economic uncertainties, demand fundamentals across end-use exposures are expected to remain positive [43] Other Important Information - The company repurchased $65 million worth of stock during Q3 2022, maintaining a net debt leverage ratio of 2.8 times [12][32] - Full-year sales guidance was modestly lowered to a range of $810 million to $830 million due to anticipated lower sulfur costs [37] Q&A Session Summary Question: Impact of delayed refining catalyst business on Q4 and 2023 - Management indicated that delays in hydrocracking catalyst sales due to high distillate margins are expected to result in stronger sales in Q4 [48] Question: Ecoservices business outlook for 2023 - Management noted that high refinery utilization and strong demand for alkylate will benefit the Regeneration business, while virgin sulfuric acid demand remains stable [50][51] Question: Historical performance of virgin sulfuric acid in recessions - Historically, the virgin sulfuric acid business has remained stable during downturns, with strong demand expected to continue due to mining and green technology needs [53][54] Question: Production costs in Catalyst Technologies - Increased production costs in Q3 were attributed to logistics bottlenecks, but these are expected to moderate in Q4 [56][58] Question: Demand trends in virgin sulfuric acid market - Management sees steady demand in the virgin sulfuric acid market, driven by strong performance in petrochemicals and mining [64] Question: Capital allocation strategy regarding buybacks and acquisitions - The company is focused on balancing share repurchases with growth investments, particularly in green infrastructure and renewable fuels [68][69]

Financial Performance - Sales increased by $78.2 million to $225.2 million, driven by higher sales volumes and average selling prices, including favorable sulfur pricing [148]. - Gross profit rose by $21.4 million to $59.9 million, primarily due to increased sales volumes and favorable pricing, partially offset by higher manufacturing costs [149]. - Operating income increased by $15.8 million to $27.4 million, a 136.2% increase compared to the previous year [150]. - Total sales for the three months ended June 30, 2022, were $225.2 million, an increase of $78.2 million or 53.2% from $147.0 million in the same period last year [152]. - Gross profit rose to $59.9 million, up $21.4 million or 55.6% from $38.5 million year-over-year [155]. - Ecoservices sales increased by $72.2 million or 59.8%, reaching $193.0 million, driven by higher average selling prices and increased volumes [153]. - Adjusted EBITDA for Ecoservices was $60.0 million, an increase of $19.5 million or 48.1% compared to $40.5 million in the prior year [167]. - Net income attributable to Ecovyst was $19.2 million for the three months ended June 30, 2022, compared to a net loss of $1.5 million in the same period last year [165]. - Net income from continuing operations was $19.2 million for the three months ended June 30, 2022, compared to a loss of $7.9 million in the same period of 2021 [1]. - Total sales for the six months ended June 30, 2022, were $404.9 million, an increase of $131.3 million or 48.0% compared to $273.6 million for the same period in 2021 [181]. - Ecoservices sales increased by $126.0 million or 57.0% to $347.0 million, driven by higher average selling prices and increased sales volumes [181]. - Gross profit for the six months ended June 30, 2022, was $107.6 million, an increase of $39.0 million or 56.9% compared to $68.6 million in the prior year [183]. - Operating income rose to $43.9 million, a significant increase of $29.8 million or 211.3% from $14.1 million in the previous year [183]. - Net income attributable to Ecovyst was $27.1 million for the six months ended June 30, 2022, compared to a net loss of $94.2 million for the same period in 2021 [194]. - Adjusted EBITDA for the six months ended June 30, 2022, was $132.1 million, up from $95.0 million in the prior year, representing a 39.0% increase [198]. Expenses and Costs - Other operating expenses rose to $9.7 million, an increase of $4.7 million or 94.0% compared to $5.0 million in the previous year [157]. - Selling, general and administrative expenses were $22.8 million, a slight increase of $0.9 million or 4.1% from $21.9 million year-over-year [156]. - Interest expense for the three months ended June 30, 2022, was $8.9 million, slightly up from $8.7 million in the same period of 2021 [1]. - The company reported a depreciation and amortization expense of $19.7 million for the three months ended June 30, 2022, compared to $20.0 million in the same period of 2021 [1]. - Selling, general and administrative expenses increased to $46.3 million, up $2.3 million or 5.2% compared to $44.0 million for the same period in 2021 [184]. - Other operating expenses increased to $17.4 million, an increase of $6.9 million or 65.7% compared to $10.5 million in the prior year [185]. Tax and Income - The effective tax rate for the three months ended June 30, 2022, was 27.5%, compared to an unusual rate of (4,371.6)% in the same period last year [164]. - The provision for income taxes was $7.3 million for the three months ended June 30, 2022, compared to $7.7 million in the same period of 2021 [1]. - The effective tax rate for the six months ended June 30, 2022, was 32.4%, compared to (30.9)% for the same period in 2021 [191]. Cash Flow and Liquidity - Cash and cash equivalents as of June 30, 2022, totaled $151.2 million, with an additional $84.8 million available under the asset-based lending revolving credit facility, resulting in total available liquidity of $236.0 million [204]. - Cash interest paid for the six months ended June 30, 2022, was approximately $15.8 million, a decrease from $28.8 million in the same period of 2021 [204]. - The company had no borrowings under its revolving credit facility as of June 30, 2022, and was in compliance with all covenants under its debt agreements [204]. - The company expects ongoing cash needs for at least the next twelve months to be met through existing cash, cash flows from operations, and available credit [204]. - Net cash provided by operating activities for the six months ended June 30, 2022, was $52.8 million, an increase from $37.2 million in the same period of 2021 [209]. - Cash used in investing activities was $29.5 million for the six months ended June 30, 2022, compared to $70.0 million in the same period of 2021 [209]. - Net cash used in financing activities was $11.9 million for the six months ended June 30, 2022, compared to $5.0 million in the same period of 2021 [209]. - The unfavorable change in working capital was $51.7 million for the six months ended June 30, 2022, compared to $15.2 million in the same period of 2021 [207]. - Cash generated by operating activities, excluding changes in working capital, increased by $52.2 million compared to the prior year period [209]. Debt and Financing - The company may seek opportunities to repurchase, refinance, or reprice its debt, subject to market conditions [211]. - Total debt as of June 30, 2022, was $891.0 million, a slight decrease from $895.5 million as of December 31, 2021 [211]. - The total long-term debt, excluding the current portion, was $869.4 million as of June 30, 2022, compared to $872.8 million as of December 31, 2021 [211]. - A one percent change in assumed interest rates for variable interest credit facilities would have an annual impact of approximately $8.9 million on interest expense [204]. - The company has interest rate caps on $500.0 million of notional variable-rate debt with a cap rate of 0.84% through July 2022 [204]. Strategic Initiatives - The company plans to continue focusing on market expansion and new product development to drive future growth [1]. - The company continues to monitor the impact of the Russia-Ukraine conflict but reports no significant exposure in those markets [133].

Financial Data and Key Metrics Changes - Total sales for Q2 2022 were $261 million, up 45% year-over-year, with adjusted EBITDA of $73 million, reflecting a 38% increase compared to the previous year [24][25][36] - Adjusted EBITDA margin decreased by 140 basis points to 28%, primarily due to the pass-through of higher sulfur costs [25][27] - The leverage ratio improved to 2.8 times, with expectations to reach the mid-two times by year-end [12][31] Business Line Data and Key Metrics Changes - Ecoservices sales reached $193 million, a 60% increase year-over-year, with adjusted EBITDA rising 48% to $60 million [28] - Catalyst Technologies saw adjusted EBITDA of $21 million, up 3.5% year-over-year, driven by increased sales volume despite unfavorable product mix and higher production costs [30] Market Data and Key Metrics Changes - High refinery utilization rates supported strong demand for alkylate production, benefiting the Ecoservices segment [13][14] - The demand for virgin sulfuric acid remains robust, driven by industrial applications and the mining sector, particularly for copper and lithium [15][66] Company Strategy and Development Direction - The company is focused on sustainable technologies, with approximately two-thirds to three-fourths of sales associated with sustainable products and services [22] - The capital allocation strategy includes share repurchases and potential bolt-on acquisitions to enhance growth and shareholder value [33][75] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the near-term outlook, citing strong demand trends and the ability to mitigate inflationary pressures through contractual mechanisms [10][38] - The company anticipates continued growth in both Ecoservices and Catalyst Technologies, despite potential delays in catalyst change-outs [35][52] Other Important Information - The company repurchased nearly $9 million worth of common stock during the quarter, reflecting a commitment to returning capital to shareholders [12][33] - The full-year guidance for sales was raised by $20 million, now expected to be between $830 million and $850 million [36][70] Q&A Session Summary Question: Share repurchases for the balance of the year - Management indicated that share repurchases will be opportunistic, with no specific timing but a focus on driving investor returns [42][43] Question: Capital allocation and M&A opportunities - There remains a strong pipeline of bolt-on acquisition opportunities, particularly in Ecoservices and Catalyst Technologies [44][45] Question: Catalyst Technologies delays and future outlook - Delays in catalyst change-outs are expected to result in a stronger 2023, as high refinery utilization continues [47][49] Question: Resilience in a potential recession - The company believes its businesses will remain resilient due to strong demand in the Regeneration and virgin sulfuric acid segments [50][52] Question: Free cash flow guidance - Free cash flow guidance remains unchanged, with strong cash generation expected despite potential delays in dividends from the Zeolyst joint venture [54][70] Question: Sales opportunities and customer additions - The company is confident in its ability to innovate and add new customers, supported by strong market demand [80][81]

PART I FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) Ecovyst Inc.'s unaudited condensed consolidated financial statements for Q1 2022 reflect a significant turnaround to net income, driven by increased sales and gross profit [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Ecovyst reported **$7.9 million** net income from continuing operations in Q1 2022, a significant improvement from a **$2.7 million** net loss in Q1 2021, driven by increased sales and gross profit Condensed Consolidated Statements of Income (in thousands, except per share data) | Metric | Three months ended March 31, 2022 | Three months ended March 31, 2021 | | :--- | :--- | :--- | | **Sales** | $179,714 | $126,624 | | **Gross Profit** | $47,735 | $30,119 | | **Operating Income** | $16,436 | $2,482 | | **Net Income (Loss) from Continuing Operations** | $7,875 | $(2,748) | | **Net Income (Loss) Attributable to Ecovyst Inc.** | $7,875 | $(92,635) | | **Diluted Income (Loss) per Share - Continuing Operations** | $0.06 | $(0.02) | | **Diluted Income (Loss) per Share** | $0.06 | $(0.68) | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2022, total assets were **$1.935 billion**, total liabilities decreased to **$1.170 billion**, and total equity increased to **$765.6 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total Current Assets** | $302,298 | $291,669 | | **Total Assets** | $1,935,248 | $1,931,219 | | **Total Current Liabilities** | $113,074 | $145,081 | | **Total Liabilities** | $1,169,617 | $1,190,482 | | **Total Equity** | $765,631 | $740,737 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities was **$6.4 million** in Q1 2022, a decrease from **$17.4 million** in Q1 2021, while investing activities used **$14.4 million** Cash Flow Summary (in thousands) | Cash Flow Activity | Three months ended March 31, 2022 | Three months ended March 31, 2021 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $6,423 | $17,423 | | **Net cash used in investing activities** | $(14,413) | $(76,569) | | **Net cash used in financing activities** | $(2,555) | $(1,978) | | **Net change in cash, cash equivalents and restricted cash** | $(11,141) | $(63,832) | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes explain Ecovyst's business structure, divestitures, disaggregated revenue, a new stock repurchase program, and segment performance metrics - The company operates through two main businesses: Ecoservices (sulfuric acid recycling and virgin sulfuric acid) and Catalyst Technologies (silica catalysts and supports, plus a 50% joint venture in zeolites)[26](index=26&type=chunk) - The sale of the Performance Chemicals business was completed on August 1, 2021. In Q1 2022, the company made a final adjustment payment of **$3.7 million** to the buyer[32](index=32&type=chunk) Disaggregated Sales by End Use (in thousands) | End Use | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Industrial & process chemicals | $32,854 | $16,947 | | Fuels & emission control | $71,658 | $55,192 | | Packaging & engineered plastics | $50,133 | $37,024 | | Natural resources | $25,069 | $17,461 | | **Total segment sales** | **$179,714** | **$126,624** | - On April 27, 2022, the Board approved a new stock repurchase program to purchase up to **$450 million** of common stock over four years[57](index=57&type=chunk)[113](index=113&type=chunk) Segment Performance (in thousands) | Metric | Segment | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | :--- | | **Sales** | Ecoservices | $154,060 | $100,222 | | | Catalyst Technologies | $25,654 | $26,402 | | **Adjusted EBITDA** | Ecoservices | $49,341 | $33,002 | | | Catalyst Technologies | $16,975 | $18,469 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2022 financial results, highlighting significant sales and gross profit growth driven by Ecoservices, sufficient liquidity, and a new stock repurchase program [Results of Operations](index=34&type=section&id=Results%20of%20Operations) Q1 2022 sales increased by **$53.1 million** to **$179.7 million**, primarily driven by Ecoservices' growth, while gross profit and operating income also significantly improved Financial Performance Summary (in millions) | Metric | Q1 2022 | Q1 2021 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Sales** | $179.7 | $126.6 | $53.1 | 41.9% | | **Gross Profit** | $47.7 | $30.1 | $17.6 | 58.5% | | **Operating Income** | $16.5 | $2.5 | $14.0 | 560.0% | | **Net Income (loss) from continuing ops** | $7.9 | $(2.7) | $10.6 | (392.6)% | - Ecoservices sales increased by **$53.8 million (53.7%)** due to higher average selling prices (**$37.3 million**) and increased sales volumes (**$16.5 million**), including the pass-through of **$21.3 million** in higher sulfur costs[137](index=137&type=chunk) - Catalyst Technologies sales decreased by **$0.7 million (2.7%)** due to delayed shipments and timing of custom catalyst sales, partially offset by higher polyethylene catalyst sales[137](index=137&type=chunk) Adjusted EBITDA by Segment (in millions) | Segment | Q1 2022 | Q1 2021 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Ecoservices | $49.3 | $33.0 | $16.3 | 49.4% | | Catalyst Technologies | $17.0 | $18.5 | $(1.5) | (8.1)% | | **Total Adjusted EBITDA** | **$59.2** | **$42.3** | **$16.9** | **40.0%** | [Financial Condition, Liquidity and Capital Resources](index=40&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) As of March 31, 2022, total available liquidity was **$206.5 million**, with total debt at **$893.2 million**, deemed sufficient for the next 12 months - As of March 31, 2022, the company had total available liquidity of **$206.5 million**, with no borrowings under its revolving credit facility[158](index=158&type=chunk) Cash Flow Summary - Continuing Operations (in millions) | Activity | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $6.4 | $16.5 | | Net cash used in investing activities | $(14.4) | $(54.6) | | Net cash used in financing activities | $(2.6) | $(1.5) | - Total debt was **$893.2 million** as of March 31, 2022. Net debt was **$763.5 million**, including cash of **$129.7 million**[165](index=165&type=chunk) Capital Expenditures (in millions) | Type | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Maintenance | $7.0 | $9.2 | | Growth | $2.1 | $2.6 | | **Total** | **$9.1** | **$11.8** | [Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes occurred in the company's market risk exposures, including foreign currency, interest rate, commodity, and credit risks, since the last Annual Report on Form 10-K - There have been no material changes in foreign exchange risk, interest rate risk, commodity risk, or credit risk from the company's most recent Annual Report on Form 10-K[171](index=171&type=chunk) [Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2022, with no material changes to internal control over financial reporting - Management concluded that as of March 31, 2022, the company's disclosure controls and procedures were effective at a reasonable assurance level[172](index=172&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended March 31, 2022, that materially affected, or are reasonably likely to materially affect, internal controls[173](index=173&type=chunk) PART II OTHER INFORMATION [Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to various legal claims but believes no pending litigation will have a material adverse effect on its business - The company is not aware of any pending litigation that is likely to have a material adverse effect on its business[175](index=175&type=chunk) [Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) This section updates risk factors, highlighting international operations compliance risks with anti-corruption laws, economic sanctions, and the impact of the Russia-Ukraine conflict - The company's international operations are subject to U.S. and foreign anti-corruption laws (e.g., FCPA), economic sanctions, and export controls, and failure to comply could result in significant liabilities[176](index=176&type=chunk) - The invasion of Ukraine by Russia and the resulting sanctions could disrupt or adversely impact the company's business, supply chain, partners, or customers[176](index=176&type=chunk) [Exhibits](index=46&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the 10-Q, including a General Release, CEO/CFO certifications, and financial data in Inline XBRL format - The report includes CEO and CFO certifications under Sections 302 and 906 of the Sarbanes-Oxley Act[181](index=181&type=chunk) - Financial statements and notes are provided in Inline XBRL format as part of the exhibits[181](index=181&type=chunk) [Signatures](index=47&type=section&id=SIGNATURES) The report was signed and authorized by Michael Feehan, Vice President and Chief Financial Officer, on May 3, 2022 - The Form 10-Q was signed and authorized by Michael Feehan, Vice President and Chief Financial Officer, on May 3, 2022[186](index=186&type=chunk)

Ecovyst Inc. (NYSE:ECVT) Q1 2022 Results Conference Call April 28, 2022 5:00 PM ET Company Participants Mike Feehan - Chief Financial Officer Kurt Bitting - Chief Executive Officer Tom Schneberger - President Conference Call Participants John McNulty - BMO Capital Markets Aleksey Yefremov - KeyBanc David Begleiter - Deutsche Bank Angel Castillo - Morgan Stanley David Silver - CL King Hamed Khorsand - BWS Financial Kevin Grundy - Jefferies Operator Good morning. My name is Catherine, and I will be your confe ...

Part I [Business Overview](index=5&type=section&id=Item%201.%20Business) Ecovyst Inc. is a global provider of specialty catalysts and services, strategically divesting non-core businesses to focus on environmental sustainability products and maintain market leadership. - On August 1, 2021, the company changed its name from "PQ Group Holdings Inc." to "Ecovyst Inc." and its NYSE ticker symbol from "PQG" to "ECVT"[15](index=15&type=chunk) - Completed the sale of the Performance Chemicals business for **$1.1 billion** on August 1, 2021, and the Performance Materials business for **$650 million** on December 14, 2020, with proceeds used for debt repayment and a special cash dividend[15](index=15&type=chunk) 2021 Sales Breakdown (Including 50% of Zeolyst JV Sales) | Category | Breakdown | | :--- | :--- | | **By End Use** | | | Fuels & Emissions Controls | 46% | | Packaging & Engineered Plastics | 31% | | Industrial & Process Chemicals | 12% | | Natural Resources | 11% | | **By Geography** | | | North America | 84% | | Europe | 8% | | Asia | 5% | | Rest of World | 3% | | **By Customer** | | | Top 20 Customers | 58% | | Other Customers | 42% | 2021 Segment Financial Summary (in millions) | Segment | Sales (Millions) | % of Total Sales | Adjusted EBITDA (Millions) | % of Total Adjusted EBITDA | | :--- | :--- | :--- | :--- | :--- | | Ecoservices | $500.5 | 67.4% | $177.7 | 66.9% | | Catalyst Technologies | $110.7 | 14.9% | $88.0 | 33.1% | | Zeolite Catalyst (JV) | $131.3 | 17.7% | N/A | N/A | | **Total** | **$742.5** | **100.0%** | **$265.7** | **100.0%** | - The company holds a **1 or 2 supply share position** for products that generated over **90%** of its 2021 sales[17](index=17&type=chunk)[33](index=33&type=chunk) - As of December 31, 2021, the company had **883 employees** worldwide, with **766** in the United States, and approximately **35%** of employees were represented by a union or similar body[78](index=78&type=chunk)[163](index=163&type=chunk) [Risk Factors](index=23&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant operational, financial, and strategic risks, including substantial indebtedness, customer concentration, and shareholder influence. - Business Operations Risks: The company is exposed to global economic conditions, currency fluctuations (primarily Euro and British pound), and anti-corruption laws like the FCPA due to its international operations[91](index=91&type=chunk)[94](index=94&type=chunk)[95](index=95&type=chunk) - Customer Concentration Risk: For the year ended December 31, 2021, the top ten customers represented approximately **41% of sales**, with a single customer accounting for **11% ($78.5 million)** across both the Ecoservices and Catalyst Technologies segments[105](index=105&type=chunk) - Environmental and Regulatory Risks: The business is subject to extensive environmental, health, and safety regulations (e.g., Clean Air Act, CERCLA) and potential costs related to climate change regulations and GHG emissions[113](index=113&type=chunk)[117](index=117&type=chunk) - Indebtedness Risk: As of December 31, 2021, the company had substantial indebtedness totaling approximately **$895.5 million**, which could affect financial condition and flexibility[142](index=142&type=chunk) - Common Stock and Ownership Risk: As of December 31, 2021, affiliates of CCMP and INEOS beneficially owned approximately **34%** and **18%** of outstanding common stock, respectively, giving them significant influence over key corporate decisions[147](index=147&type=chunk) [Unresolved Staff Comments](index=43&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC. - None[168](index=168&type=chunk) [Properties](index=43&type=section&id=Item%202.%20Properties) Ecovyst's corporate headquarters are in Malvern, Pennsylvania, operating 10 manufacturing facilities across 2 countries, primarily serving the Ecoservices segment. Principal Manufacturing Facilities (as of Dec 31, 2021) | Location | Segment | | :--- | :--- | | Baton Rouge, LA, USA | Ecoservices | | Baytown, TX, USA | Ecoservices | | Dominguez, CA, USA | Ecoservices | | Delfzijl, The Netherlands | Catalyst Technologies | | Hammond, IN, USA | Ecoservices | | Houston, TX, USA | Ecoservices | | Kansas City, KS, USA | Catalyst Technologies | | Martinez, CA, USA | Ecoservices | | Orange, TX, USA | Ecoservices | | Portland, OR, USA | Ecoservices | [Legal Proceedings](index=44&type=section&id=Item%203.%20Legal%20Proceedings) The company is subject to various legal claims incidental to its business but currently believes no pending litigation will have a material adverse effect. - The company states that it does not believe any currently pending litigation is likely to have a material adverse effect on its business[173](index=173&type=chunk) [Mine Safety Disclosures](index=44&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company. - Not applicable[174](index=174&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=44&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Ecovyst's common stock trades on the NYSE under "ECVT", and a special cash dividend of $3.20 per share was paid in 2021, with no current plans for regular dividends. - The company's common stock trades on the NYSE under the symbol "**ECVT**"[176](index=176&type=chunk) - A special cash dividend of **$3.20 per share** was paid on August 23, 2021, to stockholders of record as of August 12, 2021[176](index=176&type=chunk) - The company does not currently plan to pay regular dividends in the foreseeable future[176](index=176&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=46&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Ecovyst's 2021 sales and Adjusted EBITDA increased significantly due to demand recovery and strategic divestitures, impacting its financial position and debt levels. [Results of Operations](index=49&type=section&id=Results%20of%20Operations) Sales and Adjusted EBITDA increased significantly in 2021 across both segments, driven by demand recovery, despite a net loss from discontinued operations. Consolidated Statement of Income Summary (in millions) | Metric | 2021 (Millions) | 2020 (Millions) | Change (%) | | :--- | :--- | :--- | :--- | | Sales | $611.2 | $495.9 | 23.3% | | Gross Profit | $176.7 | $150.9 | 17.1% | | Operating Income | $54.6 | $51.6 | 5.8% | | Net Income from Continuing Operations | $1.8 | $54.3 | (96.7)% | | Net Loss from Discontinued Operations | ($141.4) | ($336.0) | (57.9)% | | Net Loss Attributable to Ecovyst Inc. | ($139.9) | ($278.8) | (49.8)% | Sales by Segment (in millions) | Segment | 2021 (Millions) | 2020 (Millions) | Change (%) | | :--- | :--- | :--- | :--- | | Ecoservices | $500.5 | $401.9 | 24.5% | | Catalyst Technologies | $110.7 | $94.0 | 17.8% | | **Total Sales** | **$611.2** | **$495.9** | **23.3%** | Adjusted EBITDA by Segment (in millions) | Segment | 2021 (Millions) | 2020 (Millions) | Change (%) | | :--- | :--- | :--- | :--- | | Ecoservices | $177.7 | $157.2 | 13.0% | | Catalyst Technologies | $88.0 | $74.5 | 18.1% | | Unallocated corporate expenses | ($38.1) | ($39.1) | (2.6)% | | **Total Adjusted EBITDA** | **$227.6** | **$192.6** | **18.2%** | [Financial Condition, Liquidity and Capital Resources](index=63&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) As of year-end 2021, Ecovyst maintained $202.2 million in liquidity with $895.5 million in total debt, while increasing capital expenditures. - Total available liquidity as of December 31, 2021 was **$202.2 million**, consisting of **$140.9 million** in cash and cash equivalents and **$61.3 million** of availability under the asset-based lending revolving credit facility[259](index=259&type=chunk) Debt Summary (in millions) | Component | Dec 31, 2021 (Millions) | Dec 31, 2020 (Millions) | | :--- | :--- | :--- | | Total Debt | $895.5 | $1,426.4 | | Net Debt | $754.6 | $1,313.0 | Cash Flow from Continuing Operations (in millions) | Activity | 2021 (Millions) | 2020 (Millions) | 2019 (Millions) | | :--- | :--- | :--- | :--- | | Operating Activities | $137.3 | $140.1 | $133.2 | | Investing Activities | $875.7 | $571.8 | ($54.6) | | Financing Activities | ($963.1) | ($720.2) | ($214.7) | - Capital expenditures for continuing operations increased to **$62.4 million** in 2021 from **$46.2 million** in 2020, as both growth and maintenance projects resumed after being delayed due to the pandemic[276](index=276&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=73&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages market risks including foreign currency exchange, interest rates, and credit, with specific hedging strategies for variable-rate debt. - The company's main market risk exposures are foreign currency exchange, interest rate, and credit risk[292](index=292&type=chunk) - A **100 basis point** increase in interest rates on variable-rate debt would have an annual impact of approximately **$9.0 million** on interest expense[296](index=296&type=chunk) - The company uses interest rate cap agreements to hedge interest rate fluctuations, with these agreements having a fair value net asset of **$3.7 million** as of December 31, 2021[296](index=296&type=chunk) [Financial Statements and Supplementary Data](index=75&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section contains the consolidated financial statements of Ecovyst Inc. and its subsidiaries, along with the independent auditor's report and accompanying notes. - The independent auditor, PricewaterhouseCoopers LLP, issued an unqualified opinion on the consolidated financial statements and the effectiveness of internal control over financial reporting as of December 31, 2021[330](index=330&type=chunk) - A critical audit matter identified was the goodwill impairment assessment for the Catalyst Technologies reporting unit, due to the significant management judgment involved in determining its fair value[334](index=334&type=chunk) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=75&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure. - None[298](index=298&type=chunk) [Controls and Procedures](index=76&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2021, with no material changes. - Management concluded that as of December 31, 2021, the company's disclosure controls and procedures were effective[300](index=300&type=chunk) - Management's assessment, based on the COSO framework, concluded that internal control over financial reporting was effective as of December 31, 2021[301](index=301&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=77&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information required by this item is incorporated by reference from the company's 2022 Proxy Statement. - The information required by this item is incorporated by reference from the Ecovyst Inc. Proxy Statement for the 2022 Annual Meeting of Stockholders[305](index=305&type=chunk) [Executive Compensation](index=77&type=section&id=Item%2011.%20Executive%20Compensation) Information required by this item is incorporated by reference from the company's 2022 Proxy Statement. - The information required by this item is incorporated by reference from the Ecovyst Inc. Proxy Statement for the 2022 Annual Meeting of Stockholders[306](index=306&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=77&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information required by this item is incorporated by reference from the company's 2022 Proxy Statement. - The information required by this item is incorporated by reference from the Ecovyst Inc. Proxy Statement for the 2022 Annual Meeting of Stockholders[307](index=307&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=77&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information required by this item is incorporated by reference from the company's 2022 Proxy Statement. - The information required by this item is incorporated by reference from the Ecovyst Inc. Proxy Statement for the 2022 Annual Meeting of Stockholders[308](index=308&type=chunk) [Principal Accountant Fees and Services](index=77&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information required by this item is incorporated by reference from the company's 2022 Proxy Statement. - The information required by this item is incorporated by reference from the Ecovyst Inc. Proxy Statement for the 2022 Annual Meeting of Stockholders[309](index=309&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=78&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists the financial statements, financial statement schedules, and exhibits filed as part of the Form 10-K report. - This item lists all documents filed as part of the report, including financial statements and schedules, and an index of exhibits[312](index=312&type=chunk) [Form 10-K Summary](index=81&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company indicates there is no Form 10-K summary. - None[317](index=317&type=chunk)

Ecovyst Inc. (NYSE:ECVT) Q4 2021 Earnings Conference Call February 25, 2022 11:00 AM ET Company Participants Belgacem Chariag – President & Chief Executive Officer Michael Feehan – Vice President & Chief Financial Officer Christopher Evans – Director of Investor Relations & Financial Communications Conference Call Participants Angel Castillo – Morgan Stanley David Begleiter – Deutsche Bank Caleb Kostynuik – BMO Capital Markets Patrick Cunningham – Citi Aleksey Yefremov – KeyBanc Laurence Alexander – Jefferi ...

Ecovyst Inc. (NYSE:ECVT) Q3 2021 Earnings Conference Call November 9, 2021 11:00 AM ET Company Participants Nahla Azmy - Vice President of Investor Relations & Financial Communications Belgacem Chariag - President & Chief Executive Officer Michael Feehan - Vice President & Chief Financial Officer Conference Call Participants John McNulty - BMO Capital Markets Angel Castillo - Morgan Stanley David Silver - CL King & Associates Operator Good morning. My name is Britney and I will be your conference operator t ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38221 | --- | --- | --- | |----------------------------------------------------------------------------|- ...