[PART I FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Ecovyst Inc.'s unaudited condensed consolidated financial statements for Q2 2023, including income, balance, equity, and cash flow statements, with detailed notes [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) **Three Months Ended June 30, 2023 vs 2022 (in thousands)** | Metric | 2023 | 2022 | Change ($k) | Change (%) | | :-------------------------- | :------- | :------- | :---------- | :--------- | | Sales | $184,110 | $225,172 | $(41,062) | (18.2%) | | Gross profit | $60,970 | $59,859 | $1,111 | 1.9% | | Operating income | $33,313 | $27,411 | $5,902 | 21.5% | | Net income | $26,122 | $19,245 | $6,877 | 35.7% | | Diluted income per share | $0.22 | $0.14 | $0.08 | 57.1% | **Six Months Ended June 30, 2023 vs 2022 (in thousands)** | Metric | 2023 | 2022 | Change ($k) | Change (%) | | :-------------------------- | :------- | :------- | :---------- | :--------- | | Sales | $344,984 | $404,886 | $(59,902) | (14.8%) | | Gross profit | $97,464 | $107,594 | $(10,130) | (9.4%) | | Operating income | $41,970 | $43,847 | $(1,877) | (4.3%) | | Net income | $24,651 | $27,120 | $(2,469) | (9.1%) | | Diluted income per share | $0.20 | $0.19 | $0.01 | 5.3% | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) **Three Months Ended June 30, 2023 vs 2022 (in thousands)** | Metric | 2023 | 2022 | | :-------------------------------- | :------- | :------- | | Net income | $26,122 | $19,245 | | Total other comprehensive income (loss) | $6,692 | $(3,276) | | Comprehensive income | $32,814 | $15,969 | **Six Months Ended June 30, 2023 vs 2022 (in thousands)** | Metric | 2023 | 2022 | | :-------------------------------- | :------- | :------- | | Net income | $24,651 | $27,120 | | Total other comprehensive income (loss) | $933 | $8,102 | | Comprehensive income | $25,584 | $35,222 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) **As of June 30, 2023 vs December 31, 2022 (in thousands)** | Metric | June 30, 2023 | Dec 31, 2022 | Change ($k) | Change (%) | | :-------------------------- | :------------ | :----------- | :---------- | :--------- | | Total current assets | $197,212 | $267,704 | $(70,492) | (26.3%) | | Total assets | $1,814,038 | $1,884,553 | $(70,515) | (3.7%) | | Total current liabilities | $103,031 | $129,403 | $(26,372) | (20.4%) | | Total liabilities | $1,146,274 | $1,177,324 | $(31,050) | (2.6%) | | Total equity | $667,764 | $707,229 | $(39,465) | (5.6%) | [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) - Total equity decreased from **$707,229k** at December 31, 2022, to **$667,764k** at June 30, 2023, primarily due to **common share repurchases**[18](index=18&type=chunk) **Key Changes in Stockholders' Equity (Six Months Ended June 30, 2023 vs 2022, in thousands)** | Item | H1 2023 | H1 2022 | | :-------------------------- | :-------- | :-------- | | Net income | $26,122 | $27,120 | | Other comprehensive income (loss) | $6,692 | $8,102 | | Repurchases of common shares | $(73,374) | $(8,842) | | Treasury stock, at cost (period end) | $(224,494) | $(21,725) | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) **Six Months Ended June 30, 2023 vs 2022 (in thousands)** | Cash Flow Activity | 2023 | 2022 | Change ($k) | Change (%) | | :-------------------------------- | :------- | :------- | :---------- | :--------- | | Net cash provided by operating activities | $41,140 | $52,855 | $(11,715) | (22.2%) | | Net cash used in investing activities | $(39,227) | $(29,498) | $(9,729) | 33.0% | | Net cash used in financing activities | $(79,878) | $(11,914) | $(67,964) | 570.5% | | Net change in cash and cash equivalents | $(81,688) | $10,339 | $(92,027) | (890.1%) | | Cash and cash equivalents at end of period | $29,232 | $151,228 | $(121,996) | (80.7%) | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [1. Background and Basis of Presentation](index=9&type=section&id=1.%20Background%20and%20Basis%20of%20Presentation) Ecovyst Inc. is a global specialty catalyst and services provider, operating Ecoservices and Catalyst Technologies segments, with unaudited GAAP financials - Ecovyst Inc. is a **leading integrated global provider of specialty catalysts and services**, focusing on **environmental sustainability**[23](index=23&type=chunk) - The Company operates through two segments: **Ecoservices** (sulfuric acid recycling, virgin sulfuric acid) and **Catalyst Technologies** (silica catalysts, Zeolyst Joint Venture)[24](index=24&type=chunk) - A **presentation error in accumulated other comprehensive income (loss) was corrected**, with **no impact on total accumulated other comprehensive income (loss)** or other consolidated financial statements[27](index=27&type=chunk) [2. New Accounting Standards](index=10&type=section&id=2.%20New%20Accounting%20Standards) Ecovyst adopted new FASB guidance for LIBOR to SOFR transition and business combination contract assets/liabilities, with no LIBOR impact - The Company **amended 2021 Term Loan Facility, ABL Facility, and interest rate cap agreements** in February 2023 to replace **LIBOR with SOFR**, with **no impact on financial statements**[30](index=30&type=chunk) - **New FASB guidance on recognizing contract assets and liabilities** in business combinations adopted **effective January 1, 2023**, to be applied **prospectively**[31](index=31&type=chunk) [3. Revenue from Contracts with Customers](index=11&type=section&id=3.%20Revenue%20from%20Contracts%20with%20Customers) Revenue disaggregated by Ecoservices and Catalyst Technologies segments; Q2 and H1 2023 sales decreased due to lower volumes and sulfur cost pass-through - **Revenue disaggregated by Ecoservices and Catalyst Technologies segments** and key end uses: **Clean fuels, emission control & other; Polymers & engineered plastics; Regeneration and treatment services; and Industrial, mining & automotive**[34](index=34&type=chunk)[35](index=35&type=chunk) **Sales by Segment and End Use (Three Months Ended June 30, in thousands)** | Segment/End Use | 2023 Sales | 2022 Sales | Change ($k) | Change (%) | | :-------------------------------- | :--------- | :--------- | :---------- | :--------- | | **Ecoservices** | **158,065** | **192,968** | **(34,903)** | **(18.1%)** | | Clean fuels, emission control & other | 8,426 | 7,386 | 1,040 | 14.1% | | Regeneration and treatment services | 98,494 | 87,143 | 11,351

Key Messages | --- | --- | --- | --- | --- | --- | --- | |-----------------------------------|------------------------------------------------------|---------------------------------------------------------------|-------|-------|-------|-------| | Q2 \n$229 Mln Sales Q2 2023 1 | 2023 Key Highlights \n$79 Mln Adj. EBITDA Q2 2023 2 | >80% Number of innovation projects linked to Sustainability | | | | | | 3.2x Net Debt Leverage Ratio 2,5 | 73% Cash Conversion 2,3,4 | $99 Mln Liquidity 6 | | | | | coservice dig ...

Ecovyst Inc. (NYSE:ECVT) Q2 2023 Earnings Conference Call August 3, 2023 11:00 AM ET Company Participants Gene Shiels - Director of Investor Relations Kurt Bitting - Chief Executive Officer Michael Feehan - Chief Financial Officer Conference Call Participants John McNulty - BMO Capital Markets David Begleiter - Deutsche Bank Hamed Khorsand - BWS Financial Laurence Alexander - Jefferies David Silver - CL King Operator Good morning. My name is Travis, and I will be your conference operator today. Welcome to t ...

Ecovyst Inc. (NYSE:ECVT) Q1 2023 Earnings Conference Call May 4, 2023 11:00 AM ET Company Participants Gene Shiels - Director of Investor Relations Kurt Bitting - Chief Executive Officer & Director Mike Feehan - Chief Financial Officer Conference Call Participants David Huang - Deutsche Bank Hamed Khorsand - BWS Financial Operator Good morning. My name is Todd, and I will be your conference operator today. Welcome to the Ecovyst First Quarter 2023 Earnings Call and Webcast. Please note today's call is being ...

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 March 31, 2023 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 Ecovyst Inc. Delaware 81-3406833 (State or other jurisdiction of incorporation or organization) 300 Lin ...

Ecovyst Inc. (NYSE:ECVT) Q4 2022 Earnings Conference Call February 28, 2023 11:00 AM ET Company Participants Gene Shiels - Director of Investor Relations Kurt Bitting - Chief Executive Officer and Director Mike Feehan - Chief Financial Officer Conference Call Participants John McNulty - BMO Aleksey Yefremov - KeyBanc Capital Markets Patrick Cunningham - Citi David Begleiter - Deutsche Bank Hamed Khorsand - BWS Daniel Rizzo - Jefferies David Silver - CLK Operator Good morning. My name is Shelby, and I will b ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 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 Ecovyst Inc. | Title of each class | Trading symbol | Name of each exchange on which registered | | --- | --- | --- | | Common stoc ...

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].