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].

Ecovyst Inc. (NYSE:ECVT) Q3 2022 Earnings Conference Call November 1, 2022 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 Capital Markets David Begleiter - Deutsche Bank Aleksey Yefremov - KeyBanc Capital Markets Angel Castillo - Morgan Stanley Patrick Cunningham - Citi Laurence Alexander - Jefferies David Silver - CL King Operator Good morn ...

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]

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, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |----------------------------------------------------------------------------|------------------------------------------| | | | | | | | ECOVYST | INC. | | De ...

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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Securities registered pursuant to Section 12(b) of the Act: 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, 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 ECOVYST INC. Delaware 81-3406833 (State or other jurisdiction of i ...

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 | --- | --- | --- | |----------------------------------------------------------------------------|- ...