Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 29, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-38221 | |
Entity Registrant Name | ECOVYST INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 81-3406833 | |
Entity Address, Address Line One | 300 Lindenwood Drive | |
Entity Address, City or Town | Malvern | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19355 | |
City Area Code | (484) | |
Local Phone Number | 617-1200 | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Trading Symbol | ECVT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 138,696,941 | |
Entity Central Index Key | 0001708035 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Sales | $ 179,714 | $ 126,624 |
Cost of goods sold | 131,979 | 96,505 |
Gross profit | 47,735 | 30,119 |
Selling, general and administrative expenses | 23,536 | 22,130 |
Other operating expense, net | 7,763 | 5,507 |
Operating income | 16,436 | 2,482 |
Equity in net (income) from affiliated companies | (5,749) | (5,210) |
Interest expense, net | 8,450 | 10,456 |
Other expense, net | 140 | 5,174 |
Income (loss) from continuing operations before income taxes and noncontrolling interest | 13,595 | (7,938) |
Provision (benefit) for income taxes | 5,720 | (5,190) |
Net income (loss) from continuing operations | 7,875 | (2,748) |
Net loss from discontinued operations, net of tax | 0 | (89,770) |
Net income (loss) | 7,875 | (92,518) |
Less: Net income attributable to the noncontrolling interest—discontinued operations | 0 | 117 |
Net income (loss) attributable to Ecovyst Inc. | 7,875 | (92,635) |
Income (loss) from continuing operations attributable to Ecovyst Inc. | 7,875 | (2,748) |
Loss from discontinued operations attributable to Ecovyst Inc. | $ 0 | $ (89,887) |
Net income (loss) per share: | ||
Basic income (loss) per share—continuing operations | $ 0.06 | $ (0.02) |
Diluted income (loss) per share—continuing operations | 0.06 | (0.02) |
Basic loss per share—discontinued operations | 0 | (0.66) |
Diluted loss per share—discontinued operations | 0 | (0.66) |
Basic income (loss) per share | 0.06 | (0.68) |
Diluted income (loss) per share | $ 0.06 | $ (0.68) |
Weighted average shares outstanding: | ||
Basic (shares) | 137,684,773 | 136,006,082 |
Diluted (shares) | 138,749,065 | 136,006,082 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 7,875 | $ (92,518) |
Other comprehensive income (loss), net of tax: | ||
Pension and postretirement benefits | (39) | (43) |
Net gain from hedging activities | 13,722 | 765 |
Foreign currency translation | (2,305) | (3,861) |
Total other comprehensive income (loss) | 11,378 | (3,139) |
Comprehensive income (loss) | 19,253 | (95,657) |
Less: Comprehensive loss attributable to noncontrolling interests | 0 | (277) |
Comprehensive income (loss) attributable to Ecovyst Inc. | $ 19,253 | $ (95,380) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 129,748 | $ 140,889 |
Accounts receivable, net | 91,106 | 80,802 |
Inventories, net | 54,748 | 53,813 |
Prepaid and other current assets | 26,696 | 16,165 |
Total current assets | 302,298 | 291,669 |
Investments in affiliated companies | 436,074 | 446,074 |
Property, plant and equipment, net | 588,733 | 596,231 |
Goodwill | 405,304 | 406,139 |
Other intangible assets, net | 141,654 | 145,617 |
Right-of-use lease assets | 30,948 | 30,115 |
Other long-term assets | 30,237 | 15,374 |
Total assets | 1,935,248 | 1,931,219 |
LIABILITIES | ||
Current maturities of long-term debt | 9,000 | 9,000 |
Accounts payable | 52,525 | 51,860 |
Operating lease liabilities—current | 8,422 | 8,306 |
Accrued liabilities | 43,127 | 75,915 |
Total current liabilities | 113,074 | 145,081 |
Long-term debt, excluding current portion | 871,086 | 872,839 |
Deferred income taxes | 140,584 | 126,749 |
Operating lease liabilities—noncurrent | 22,366 | 21,719 |
Other long-term liabilities | 22,507 | 24,094 |
Total liabilities | 1,169,617 | 1,190,482 |
Commitments and contingencies (Note 17) | ||
EQUITY | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 450,000,000 | 450,000,000 |
Common stock, shares issued (shares) | 139,611,212 | 137,820,971 |
Common stock, shares outstanding (shares) | 138,696,941 | 136,938,758 |
Common stock, value, issued | $ 1,396 | $ 1,378 |
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Preferred stock, shares outstanding (shares) | 0 | 0 |
Preferred stock, value, issued | $ 0 | $ 0 |
Additional paid-in capital | 1,079,364 | 1,073,409 |
Accumulated deficit | $ (307,832) | $ (315,707) |
Treasury stock (shares) | 914,271 | 882,213 |
Treasury stock, value | $ (12,883) | $ (12,551) |
Accumulated other comprehensive income (loss) | 5,586 | (5,792) |
Total equity | 765,631 | 740,737 |
Total liabilities and equity | $ 1,935,248 | $ 1,931,219 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | (Accumulated deficit) | Treasury stock, at cost | Accumulated other comprehensive income (loss) | Non- controlling interest |
Beginning balance at Dec. 31, 2020 | $ 1,277,179 | $ 1,371 | $ 1,477,859 | $ (175,758) | $ (11,081) | $ (15,265) | $ 53 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | (92,518) | (92,635) | 117 | ||||
Other comprehensive income (loss) | (3,139) | (2,745) | (394) | ||||
Tax withholdings on equity award vesting | (1,470) | (1,470) | |||||
Distributions to noncontrolling interests | (516) | (516) | |||||
Stock compensation expense | 6,877 | 6,877 | |||||
Shares issued under equity incentive plan, net of forfeitures | 70 | 7 | 63 | ||||
Ending balance at Mar. 31, 2021 | 1,186,483 | 1,378 | 1,484,799 | (268,393) | (12,551) | (18,010) | (740) |
Beginning balance at Dec. 31, 2021 | 740,737 | 1,378 | 1,073,409 | (315,707) | (12,551) | (5,792) | 0 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | 7,875 | 7,875 | 0 | ||||
Other comprehensive income (loss) | 11,378 | 11,378 | 0 | ||||
Tax withholdings on equity award vesting | (332) | (332) | |||||
Stock compensation expense | 5,946 | 5,946 | |||||
Shares issued under equity incentive plan, net of forfeitures | 27 | 18 | 9 | ||||
Ending balance at Mar. 31, 2022 | $ 765,631 | $ 1,396 | $ 1,079,364 | $ (307,832) | $ (12,883) | $ 5,586 | $ 0 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 7,875 | $ (92,518) | |
Net loss from discontinued operations | 0 | 89,770 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation | 16,011 | 16,526 | |
Amortization | 3,535 | 2,974 | |
Amortization of deferred financing costs and original issue discount | 497 | 532 | |
Foreign currency exchange loss | 647 | 5,101 | |
Pension and postretirement healthcare benefit | (553) | (595) | |
Deferred income tax provision | 9,341 | (4,344) | |
Net loss on asset disposals | 133 | 778 | |
Stock compensation | 7,294 | 6,305 | |
Equity in net income from affiliated companies | (5,749) | (5,210) | |
Dividends received from affiliated companies | 15,000 | 5,000 | |
Other, net | (6,841) | (3,395) | |
Working capital changes that provided (used) cash, excluding the effect of acquisitions and dispositions: | |||
Receivables | (10,386) | (9,404) | |
Inventories | (1,034) | 4,564 | |
Prepaids and other current assets | (3,590) | (2,232) | |
Accounts payable | 2,154 | 4,652 | |
Accrued liabilities | (27,911) | (1,958) | |
Net cash provided by operating activities, continuing operations | 6,423 | 16,546 | |
Net cash provided by operating activities, discontinued operations | 0 | 877 | |
Net cash provided by operating activities | 6,423 | 17,423 | |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (10,750) | (12,563) | |
Payments for business divestiture | (3,744) | 0 | |
Business combinations, net of cash acquired | 0 | (41,994) | |
Other, net | 81 | 0 | |
Net cash used in investing activities, continuing operations | (14,413) | (54,557) | |
Net cash used in investing activities, discontinued operations | 0 | (22,012) | |
Net cash used in investing activities | (14,413) | (76,569) | |
Cash flows from financing activities: | |||
Repayments of long-term debt | (2,250) | 0 | |
Tax withholdings on equity award vesting | (332) | (1,470) | |
Other, net | 27 | 12 | |
Net cash used in financing activities, continuing operations | (2,555) | (1,458) | |
Net cash used in financing activities, discontinued operations | 0 | (520) | |
Net cash used in financing activities | (2,555) | (1,978) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (596) | (2,708) | |
Net change in cash, cash equivalents and restricted cash | (11,141) | (63,832) | |
Cash, cash equivalents and restricted cash at beginning of period | 140,889 | 137,219 | $ 137,219 |
Cash, cash equivalents and restricted cash at end of period | 129,748 | 73,387 | $ 140,889 |
Less: cash, cash equivalents, and restricted cash of discontinued operations | 0 | (16,625) | |
Cash, cash equivalents and restricted cash at end of period of continuing operations | $ 129,748 | $ 56,762 |
Background and Basis of Present
Background and Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | 1. Background and Basis of Presentation: Description of Business Ecovyst Inc. and subsidiaries (the “Company” or “Ecovyst”) is a leading integrated and innovative global provider of specialty catalysts and services. The Company supports customers globally through its strategically located network of manufacturing facilities. The Company believes that its products, which are predominantly inorganic, and services contribute to improving the sustainability of the environment. On December 14, 2020, the Company completed the sale of its Performance Materials business for $650,000, and the financial results of this business were presented as discontinued operations in the condensed consolidated financial statements. On August 1, 2021, the Company completed the sale of its Performance Chemicals business, and the financial results of this business are presented as discontinued operations in the condensed consolidated financial statements for the 2021 period presented. See Note 3 for more information on the transaction. The Company has two uniquely positioned specialty businesses: Ecoservices provides sulfuric acid recycling to the North American refining industry for the production of alkylate and provides on-purpose virgin sulfuric acid for water treatment, mining and industrial applications; and Catalyst Technologies provides finished silica catalysts and catalyst supports necessary to produce high strength and high stiffness plastics and, through the Zeolyst Joint Venture, supplies zeolites used for catalysts that remove nitrogen oxides from diesel engine emissions as well as sulfur from fuels during the refining process. The Company’s regeneration services product group, which is a part of the Company’s Ecoservices segment, typically experiences seasonal fluctuations as a result of higher demand for gasoline products in the summer months and lower demand in the winter months. These demand fluctuations result in higher sales and working capital requirements in the second and third quarters. The notes to the condensed consolidated financial statements, unless otherwise indicated, are on a continuing operations basis. Basis of Presentation |
New Accounting Standards
New Accounting Standards | 3 Months Ended |
Mar. 31, 2022 | |
New Accounting Standards [Abstract] | |
Recently Adopted Accounting Standards | 2. New Accounting Standards: Recently Adopted Accounting Standards In November 2021, the FASB issued guidance that requires entities to provide certain disclosures when they (1) have received government assistance and (2) use a grant or contribution accounting model by analogy to other accounting guidance. Previously, there was no guidance under GAAP on recognizing or measuring government grants to business entities. The new guidance does not provide any additional guidance on this topic; rather, it only provides guidance on required disclosures for business entities that receive government assistance and apply another grant or contribution accounting framework by analogy. The new guidance is effective for fiscal years beginning after December 15, 2021 with the new disclosures required on an annual basis, and can be applied either prospectively or retrospectively. The Company adopted the new guidance on January 1, 2022 and will include the disclosures as required in its annual reporting with respect to any government assistance or grants subject to the scope of the guidance to the extent material. Accounting Standards Not Yet Adopted In October 2021, the FASB issued guidance that requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with revenue recognition guidance. Under current GAAP, contract assets and contract liabilities acquired in a business combination are recorded by the acquirer at fair value. The new guidance creates an exception to the general recognition and measurement principles related to business combinations, and is expected to result in the acquirer recognizing contract assets and liabilities at the same amounts recorded by the acquiree. The new guidance is effective for business combinations occurring during fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of the new guidance, which would only be applied prospectively to business combinations upon the adoption of the guidance. In March 2020 and January 2021, the FASB issued guidance to address certain accounting consequences from the anticipated transition from the use of the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. The new guidance contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance is optional and may be elected over time as reference rate reform activities occur. During the year ended December 31, 2020, the Company elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index of the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. During the year ended December 31, 2021, the FASB extended the guidance adoption date to June 30, 2023. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. |
Divestitures
Divestitures | 3 Months Ended |
Mar. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Segment divestitures | 3. Divestitures: Performance Materials Divestiture Upon the close of the transaction on December 14, 2020, the Company entered into a Transition Services Agreement with the buyer pursuant to which the buyer received certain services to provide for the orderly transition of various functions and processes after the closing of the transaction. The services under the Transition Services Agreement included information technology, accounting, tax, financial services, human resources, facilities, and other administrative support services. These services were provided for a period of nine months, with three 30-day extensions available. The Company billed $1,571 under the Transition Services Agreement to the buyer during the three months ended March 31, 2021. Those billings were included in selling, general and administrative expenses on the condensed consolidated financial statements for the three months ended March 31, 2021. During the three months ended March 31, 2021, the Company incurred transaction costs of $1,446 and stock-based compensation expense of $653, and an associated tax benefit of $514 related to the Performance Materials divestiture which is included in loss from discontinued operations, net of tax. Performance Chemicals Divestiture On February 28, 2021, the Company entered into a definitive agreement to sell its Performance Chemicals business to Sparta Aggregator L.P. (the “Buyer”), a partnership established by Koch Minerals & Trading, LLC and Cerberus Capital Management, L.P., for $1,100,000, subject to certain adjustments including indebtedness, cash, working capital and transaction expenses. The Company completed the sale of the Performance Chemicals business on August 1, 2021. During the year ended December 31, 2021, the net cash proceeds to the Company from the sale were $978,449 after certain customary adjustments for indebtedness, working capital and cash at the closing of the transaction. During the three months ended March 31, 2022, the Company made a payment to the buyer for $3,744, representing the final adjustments to the sale price. The Company classified the payment within net cash used in investing activities – continuing operations in the condensed consolidated statements of cash flows. Prior to the close of the transaction, the disposal group was tested for recoverability at each of the balance sheet dates subsequent to meeting the discontinued operations criteria, and the Company recognized an estimated disposal loss of $95,594 during the three months ended March 31, 2021 which was included in net loss from discontinued operations, net of tax on the condensed consolidated statement of income. The following table summarizes the results of discontinued operations related to the Performance Chemicals business for the three months ended March 31, 2021: Three months ended Sales $ 164,523 Cost of goods sold 125,853 Selling, general and administrative expenses 11,716 Other operating expense, net 17,480 Goodwill impairment charge 95,594 Operating loss (86,120) Equity in net (income) from affiliated companies (38) Interest expense, net (1) 3,215 Other income, net (5,523) Loss from discontinued operations before income tax (83,774) Provision for income taxes 4,411 Loss from discontinued operations, net of tax $ (88,185) (1) Upon the close of the transaction, the Company used a portion of the net proceeds to repay a portion of its outstanding debt amounting to $526,363. Prior to the Company’s debt refinancing in June 2021, the Company’s outstanding term loan facilities had mandatory repayment provisions. As a result, interest expense has been allocated to discontinued operations on the basis of the Company’s total repayment of $526,363. Net income attributable to the noncontrolling interest related to the Performance Chemicals business, net of tax was $117 for the three months ended March 31, 2021. Net loss attributable to Ecovyst Inc., related to the Performance Chemicals business, net of tax was $88,302 for the three months ended March 31, 2021. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 4. Revenue from Contracts with Customers: Disaggregated Revenue The Company’s primary means of disaggregating revenues is by reportable segments, which can be found in Note 18 to these condensed consolidated financial statements. The Company’s portfolio of products is integrated into a variety of end uses, which are described in the table below. Key End Uses Key Products Industrial & process chemicals • Sulfur derivatives for industrial production • Treatment services Fuels & emission control • Refining hydrocracking catalysts • Emission control catalysts • Catalyst recycling regeneration services Packaging & engineered plastics • Catalysts for high-density polyethylene and chemicals syntheses • Antiblocks for film packaging • Sulfur derivatives for nylon production Natural resources • Sulfur derivatives for mining The following tables disaggregate the Company’s sales, by segment and end use, for the three months ended March 31, 2022 and 2021: Three months ended March 31, 2022 Ecoservices Catalyst Technologies Total Industrial & process chemicals $ 32,854 $ — $ 32,854 Fuels & emission control (1) 71,658 — 71,658 Packaging & engineered plastics 24,479 25,654 50,133 Natural resources 25,069 — 25,069 Total segment sales $ 154,060 $ 25,654 $ 179,714 Three months ended March 31, 2021 Ecoservices Catalyst Technologies Total Industrial & process chemicals $ 16,947 $ — $ 16,947 Fuels & emission control (1) 55,192 — 55,192 Packaging & engineered plastics 10,622 26,402 37,024 Natural resources 17,461 — 17,461 Total segment sales $ 100,222 $ 26,402 $ 126,624 (1) As described in Note 1, the Company experiences seasonal s ales fluctuations to customers in the fuels & emission control end use. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. Fair Value Measurements: Fair values are based on quoted market prices when available. When market prices are not available, fair values are generally estimated using discounted cash flow analyses, incorporating current market inputs for similar financial instruments with comparable terms and credit quality. In instances where there is little or no market activity for the same or similar instruments, the Company estimates fair values using methods, models and assumptions that management believes a hypothetical market participant would use to determine a current transaction price. These valuation techniques involve some level of management estimation and judgment that becomes significant with increasingly complex instruments or pricing models. Where appropriate, adjustments are included to reflect the risk inherent in a particular methodology, model or input used. The Company’s financial assets and liabilities carried at fair value have been classified based upon a fair value hierarchy. The hierarchy gives the highest ranking to fair values determined using unadjusted quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest ranking to fair values determined using methodologies and models with unobservable inputs (Level 3). The classification of an asset or a liability is based on the lowest level input that is significant to its measurement. For example, a Level 3 fair value measurement may include inputs that are both observable (Levels 1 and 2) and unobservable (Level 3). The levels of the fair value hierarchy are as follows: • Level 1—Values are unadjusted quoted prices for identical assets and liabilities in active markets accessible at the measurement date. Active markets provide pricing data for trades occurring at least weekly and include exchanges and dealer markets. • Level 2—Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices from those willing to trade in markets that are not active, or other inputs that are observable or can be corroborated by market data for the term of the instrument. Such inputs include market interest rates and volatilities, spreads and yield curves. • Level 3—Certain inputs are unobservable (supported by little or no market activity) and significant to the fair value measurement. Unobservable inputs reflect the Company’s best estimate of what hypothetical market participants would use to determine a transaction price for the asset or liability at the reporting date. The following table presents information about the Company’s assets and liabilities that were measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021, and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. March 31, Quoted Prices in Significant Other Significant Derivative assets: Interest rate caps (Note 14) $ 18,151 $ — $ 18,151 $ — Derivative liabilities: Interest rate caps (Note 14) $ 304 $ — $ 304 $ — December 31, Quoted Prices in Significant Other Significant Derivative assets: Interest rate caps (Note 14) $ 1,080 $ — $ 1,080 $ — Derivative liabilities: Interest rate caps (Note 14) $ 1,288 $ — $ 1,288 $ — Derivative contracts Derivative assets and liabilities can be exchange-traded or traded over-the-counter (“OTC”). The Company generally values exchange-traded derivatives using models that calibrate to market transactions and eliminate timing differences between the closing price of the exchange-traded derivatives and their underlying instruments. OTC derivatives are valued using market transactions and other market evidence whenever possible, including market-based inputs to models, model calibration to market transactions, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. When models are used, the selection of a particular model to value an OTC derivative depends on the contractual terms of, and specific risks inherent in, the instrument as well as the availability of pricing information in the market. The Company generally uses similar models to value similar instruments. Valuation models require a variety of inputs, including contractual terms, market prices and rates, forward curves, measures of volatility, and correlations of such inputs. For OTC derivatives that trade in liquid markets, such as forward contracts, swaps and options, model inputs can generally be corroborated by observable market data by correlation or other means, and model selection does not involve significant management judgment. As of March 31, 2022, th e Company had interest rate c aps th at were fair valued using Level 2 inputs. In addition, the Company applies a credit valuation adjustment to reflect credit risk which is calculated based on credit default swaps. To the extent that the Company’s net exposure under a specific master agreement is an asset, the Company utilizes the counterparty’s default swap rate. If the net exposure under a specific master agreement is a liability, the Company utilizes a default swap rate comparable to Ecovyst. The credit valuation adjustment is added to the discounted fair value to reflect the exit price that a market participant would be willing to receive to assume the Company’s liabilities or that a market participant would be willing to pay for the Company’s assets. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | 6. Stockholders' Equity: Accumulated Other Comprehensive Income (Loss) The following tables present the tax effects of each component of other comprehensive income (loss) for the three months ended March 31, 2022 and 2021: Three months ended March 31, 2022 2021 Pre-tax Tax benefit/ After-tax amount Pre-tax Tax benefit/ After-tax amount Defined benefit and other postretirement plans: Amortization of net gains $ 1 $ — $ 1 $ 1 $ — $ 1 Amortization of prior service cost (53) 13 (40) (58) 14 (44) Benefit plans, net (52) 13 (39) (57) 14 (43) Net gain from hedging activities 18,296 (4,574) 13,722 1,020 (255) 765 Foreign currency translation (1) (2,305) — (2,305) (6,308) 2,447 (3,861) Other comprehensive income (loss) $ 15,939 $ (4,561) $ 11,378 $ (5,345) $ 2,206 $ (3,139) (1) The income tax benefit or expense included in other comprehensive income is attributed to the portion of foreign currency translation associated with the Company’s cross-currency interest rate swaps for the three months ended March 31, 2021, for which the tax effect is based on the applicable U.S. deferred income tax rate. See Note 14 to these condensed consolidated financial statements for information regarding the Company’s cross-currency interest rate swaps, which were settled in March 2021. The following table presents the changes in accumulated other comprehensive income (loss), net of tax, by component for the three months ended March 31, 2022 and 2021: Defined benefit Net gain (loss) Foreign Total December 31, 2021 $ 11,072 $ 2,254 $ (19,118) $ (5,792) Other comprehensive income (loss) before reclassifications (78) 13,208 (2,305) 10,825 Amounts reclassified from accumulated other comprehensive income (1) 39 514 — 553 March 31, 2022 $ 11,033 $ 15,976 $ (21,423) $ 5,586 December 31, 2020 $ 5,278 $ (660) $ (19,883) $ (15,265) Other comprehensive income (loss) before reclassifications (86) 683 (3,467) (2,870) Amounts reclassified from accumulated other comprehensive income (1) 43 82 — 125 March 31, 2021 $ 5,235 $ 105 $ (23,350) $ (18,010) (1) See the following table for details about these reclassifications. Amounts in parentheses indicate debits. The following table presents the reclassifications out of accumulated other comprehensive income for the three months ended March 31, 2022 and 2021: Details about Accumulated Other Comprehensive Amounts Reclassified from Accumulated Other Comprehensive Income (1) Affected Line Item where Three months ended 2022 2021 Amortization of defined benefit and other postretirement items: Prior service (cost) credit $ (53) $ (58) Other income (expense) (2) Actuarial gains (losses) 1 1 Other income (expense) (2) (52) (57) Total before tax 13 14 Tax benefit (expense) $ (39) $ (43) Net of tax Gains and losses on cash flow hedges: Interest rate caps $ (683) $ (109) Interest expense 169 27 Tax benefit $ (514) $ (82) Net of tax Total reclassifications for the period $ (553) $ (125) Net of tax (1) Amounts in parentheses indicate debits to profit/loss. (2) These accumulated other comprehensive income (loss) components are components of net periodic pension and other postretirement cost (see Note 16 to these condensed consolidated financial statements for additional details). Treasury Stock Repurchases The Company records repurchases of its common stock for treasury at cost. Upon the reissuance of the Company’s common stock from treasury, differences between the proceeds from reissuance and the average cost of the treasury stock are credited or charged to capital in excess of par value to the extent of prior credits related to the reissuance of treasury stock. If no such credits exist, the differences are charged to retained earnings. 2020 Stock Repurchase Program On March 12, 2020, the Company’s Board of Directors (the “Board”) approved a plan to purchase up to $50,000 of Ecovyst Inc. common stock under a stock repurchase program approved by the Board. Under the plan, the Company could repurchase shares from time to time for cash in open market transactions or in privately negotiated transactions in accordance with applicable federal securities laws. The Company determined the timing and the amount of any repurchases based on its evaluation of market conditions, share price and other factors. The stock repurchase program expired in March 2022, with no repurchases made during the three months ended March 31, 2022 and 2021. 2022 Stock Repurchase Program On April 27, 2022, the Board approved a plan to purchase up to $450,000 of Ecovyst Inc. common stock over the next four years under a stock repurchase program. Under the plan, the Company can repurchase shares from time to time for cash in open market transactions or in privately negotiated transactions in accordance with applicable federal securities laws. The Company will determine the timing and the amount of any repurchases based on its evaluation of market conditions, share price and other factors. No repurchases have been made under the repurchase program since the announcement date of the program. Tax Withholdings on Equity Award Vesting In connection with the vesting of restricted stock awards, restricted stock units and performance stock units, shares of common stock may be delivered to the Company by employees to satisfy withholding tax obligations at the instruction of the employee award holders. These transactions when they occur are accounted for as stock repurchases by the Company, with the shares returned to treasury stock at a cost representing the payment by the Company of the tax obligations on behalf of the employees in lieu of shares for the vesting unit. The fair value of the shares withheld to cover tax payments were $332 and $1,470 for the three months ended March 31, 2022 and 2021, respectively. |
Acquisition
Acquisition | 3 Months Ended |
Mar. 31, 2022 | |
Business Combinations [Abstract] | |
Chem32 Acquisition | 7. Acquisition: On March 1, 2021 (the “Closing Date”), the Company completed the acquisition of Chem32, LLC (“Chem32”) as part of a stock transaction (the “Acquisition”) for $44,000 in cash. Based in Orange, Texas, Chem32 is a leader in ex situ pre-sulfiding and pre-activation for hydro-processing catalysts. The net cash paid on the Closing Date by the Company was $41,994, after certain customary adjustments for indebtedness, working capital, cash and a holdback amount pursuant to the agreement. A portion of the holdback was settled in July 2021 for a payment of $645, with $1,000 of the holdback remaining as of March 31, 2022. Chem32 is reported as part of the Ecoservices segment. The Company believes that the Acquisition enables it to offer a more robust portfolio of services within the refining industry leveraging the Company’s existing relationships, therefore contributing to a total purchase price that resulted in the recognition of $14,778 of goodwill, which was deductible for tax purposes. During the three months ended March 31, 2022, the Company recorded an immaterial adjustment between goodwill and deferred tax liabilities related to the final tax purchase price allocation. See Note 8 to these condensed consolidated financial statements for further information. The following table sets forth the calculation of the purchase price to the identifiable net assets acquired with respect to the Acquisition, which was complete as of December 31, 2021 : Purchase Cash paid, net of cash acquired $ 42,639 Holdback 1,000 Total consideration, net of cash acquired $ 43,639 Recognized amounts of identifiable assets acquired and liabilities assumed: Receivables $ 1,368 Inventories 204 Prepaid and other current assets 351 Property, plant and equipment 5,046 Other intangible assets 22,100 Other long-term assets 187 Fair value of assets acquired 29,256 Accounts payable 207 Accrued liabilities 188 Fair value of net identifiable assets acquired 28,861 Goodwill 14,778 $ 43,639 In accordance with the requirements of the purchase method of accounting for acquisitions, accounts receivable and inventories were recorded at fair market value. As of the Closing Date, the fair value of accounts receivable approximated historical cost. The gross contractual amount of accounts receivable at the Closing Date was $1,368, of which there was no amount deemed uncollectible. Fair value of inventory is defined as estimated selling prices less the sum of (a) costs of disposal and (b) a reasonable profit allowance for the selling effort of the acquiring entity, which the Company determined acquired cost equaled fair value of the inventory acquired. The valuation of intangibles assets acquired and the related weighted-average amortization periods were as follows: Amount Weighted-Average Intangible assets subject to amortization: Customer relationships $ 16,000 10 Technical know-how 3,800 10 Contracts 700 5 Trade names 1,600 10 Total intangible assets subject to amortization $ 22,100 Net sales and net income attributable to Chem32 during the period from the Closing Date through March 31, 2021 were immaterial. Pro forma financial information has not been presented as it is immaterial for the three months ended March 31, 2021. Acquisition and integration costs was immaterial for the three months ended March 31, 2021 and are included in other operating expense, net in the Company’s consolidated statement of income. |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | 8. Goodwill: The change in the carrying amount of goodwill for the three months ended March 31, 2022 is summarized as follows: Ecoservices Catalyst Technologies Total Balance as of December 31, 2021 $ 326,670 $ 79,469 $ 406,139 Goodwill adjustments (1) (81) — (81) Foreign exchange impact — (754) (754) Balance as of March 31, 2022 $ 326,589 $ 78,715 $ 405,304 (1) During the three months ended March 31, 2022, the Company recorded an adjustment of $81 between goodwill and deferred tax liabilities related to the final tax purchase price allocation for the Chem32 acquisition. |
Other Operating Expense, Net
Other Operating Expense, Net | 3 Months Ended |
Mar. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Other Operating Expense, Net | 9. Other Operating Expense, Net: A summary of other operating expense, net is as follows: Three months ended 2022 2021 Amortization expense $ 2,656 $ 2,186 Transaction and other related costs 4,281 472 Restructuring, integration and business optimization costs (1) 352 2,259 Net loss on asset disposals 133 778 Other, net 341 (188) $ 7,763 $ 5,507 (1) During the three months ended March 31, 2021, the Company’s results were impacted by costs associated with severance charges for certain executives and employees. |
Inventories, Net
Inventories, Net | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | 10. Inventories, Net: Inventories, net are classified and valued as follows: March 31, December 31, Finished products and work in process $ 46,864 $ 46,894 Raw materials 7,884 6,919 $ 54,748 $ 53,813 Valued at lower of cost or market: LIFO basis $ 33,603 $ 33,330 Valued at lower of cost and net realizable value: FIFO or average cost basis 21,145 20,483 $ 54,748 $ 53,813 |
Investments in Affiliated Compa
Investments in Affiliated Companies | 3 Months Ended |
Mar. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Affiliated Companies | 11. Investments in Affiliated Companies: The Company accounts for investments in affiliated companies under the equity method. Affiliated companies accounted for on the equity basis as of March 31, 2022 are as follows: Company Country Percent Zeolyst International USA 50% Zeolyst C.V. Netherlands 50% Following is summarized information of the combined investments (1) : Three months ended 2022 2021 Sales $ 66,683 $ 66,205 Gross profit 23,584 21,946 Operating income 14,636 14,174 Net income 14,698 13,737 (1) Summarized information of the combined investments is presented at 100%; the Company’s share of the net assets and net income of affiliates is calculated based on the percent ownership specified in the table above. The Company’s investments in affiliated companies balance as of March 31, 2022 and December 31, 2021 includes net purchase accounting fair value adjustments of $235,819 and $237,419, respectively, related to a prior business combination, consisting primarily of goodwill and intangible assets such as customer relationships, technical know-how and trade names. Consolidated equity in net income from affiliates is net of $1,601 and $1,658 of amortization expense related to purchase accounting fair value adjustments for the three months ended March 31, 2022 and 2021, respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 12. Property, Plant and Equipment: A summary of property, plant and equipment, at cost, and related accumulated depreciation is as follows: March 31, December 31, Land $ 96,946 $ 97,047 Buildings and improvements 77,953 77,851 Machinery and equipment 713,765 714,435 Construction in progress 54,800 45,952 943,464 935,285 Less: accumulated depreciation (354,731) (339,054) $ 588,733 $ 596,231 Depreciation expense was $16,011 and $16,526 for the three months ended March 31, 2022 and 2021, respectively. |
Long-term Debt
Long-term Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-term Debt | 13. Long-term Debt: The summary of long-term debt is as follows: March 31, December 31, Senior Secured Term Loan Facility due June 2028 $ 893,250 $ 895,500 ABL Facility — — Total debt 893,250 895,500 Original issue discount (8,440) (8,762) Deferred financing costs (4,724) (4,899) Total debt, net of original issue discount and deferred financing costs 880,086 881,839 Less: current portion (9,000) (9,000) Total long-term debt, excluding current portion $ 871,086 $ 872,839 The fair value of a financial instrument is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. As of March 31, 2022 and December 31, 2021, the fair value of the senior secured term loan facility was $882,084 and $894,381, respectively. The fair value is classified as Level 2 based upon the fair value hierarchy (see Note 5 to these condensed consolidated financial statements for further information on fair value measurements). |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | 14. Financial Instruments: The Company uses interest rate related derivative instruments to manage its exposure to changes in interest rates on its variable-rate debt instruments. The Company does not speculate using derivative instruments. By using derivative financial instruments to hedge exposures to changes in interest rates, the Company exposes itself to credit risk and market risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is an asset, the counterparty owes the Company, which creates credit risk for the Company. When the fair value of a derivative contract is a liability, the Company owes the counterparty and therefore, the Company is not exposed to the counterparty’s credit risk in those circumstances. The Company minimizes counterparty credit risk in derivative instruments by entering into transactions with high quality counterparties. The derivative instruments entered into by the Company do not contain credit-risk-related contingent features. Market risk is the adverse effect on the value of a derivative instrument that results from a change in interest rates. The market risk associated with the Company’s derivative instruments is managed by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken. Use of Derivative Financial Instruments to Manage Interest Rate Risk. The Company is exposed to fluctuations in interest rates on its senior secured credit facilities. Changes in interest rates will not affect the market value of such debt but will affect the Company’s interest payments over the term of the loans. Likewise, an increase in interest rates could have a material impact on the Company’s cash flow. The Company hedges the interest rate fluctuations on debt obligations through interest rate cap agreements. The Company records these agreements at fair value as assets or liabilities in its consolidated balance sheet. As the derivatives are designated and qualify as cash flow hedges, the gains or losses on the interest rate cap agreements are recorded in stockholders’ equity as a component of OCI, net of tax. Reclassifications of the gains and losses on the interest rate cap agreements into earnings are recorded as part of interest expense in the condensed consolidated statements of income as the Company makes its interest payments on the hedged portion of its senior secured credit facilities. Fair value is determined based on estimated amounts that would be received or paid to terminate the contracts at the reporting date based on quoted market prices. In November 2018, the Company entered into interest rate cap agreements to mitigate interest volatility from July 2020 through July 2022, with a cap rate of 3.50% on $500,000 of notional variable-rate debt and a $3,380 premium annuitized during the effective period. In February 2020, the Company restructured these agreements to lower the interest cap rate to 2.50% with an incremental $130 premium annuitized during the effective period. In March 2020, the Company again amended such interest rate cap agreements to lower the cap rate to 0.84% and paid an additional $900 premium annuitized during the effective period. The term and notional amount remained unchanged, and the total cumulative annuitized premium on the $500,000 of notional variable-rate debt is $4,410. The cap rate in effect at March 31, 2022 was 0.84% associated with the $500,000 of notional variable-rate debt. Upon the expiration of the July 2016 interest rate cap agreements in July 2020, the Company entered into additional interest rate cap agreements to mitigate interest rate volatility from August 2020 to August 2023, with a cap rate of 1.00% on $400,000 of notional variable-rate debt. The cap rate in effect at March 31, 2022 was 1.00% associated with the $400,000 of notional variable-rate debt. The total annuitized premium on the $400,000 of notional variable-rate debt is $137. In August 2021, PQ Corporation novated $900,000 of its interest rate caps to Ecovyst Catalyst Technologies LLC. Other than the novation, there were no other changes to the interest rate cap. In January 2022, the Company entered into two new interest rate cap agreements, with notional amounts of $250,000 each and cap rates of 1.00%. The total cumulative annuitized premium is $4,450. The term for one of the interest rate caps is August 2022 through October 2024 and the term for the other is September 2023 through October 2025. Use of Derivative Financial Instruments to Manage Foreign Currency Risk. The Company is exposed to risks related to its net investments in foreign operations due to fluctuations in foreign currency exchange rates, particularly between the United States dollar and the Euro. In February 2018, the Company entered into multiple cross-currency interest rate swap arrangements with an aggregate notional amount of €280,000 to hedge this exposure on the net investments of certain of its Euro-denominated subsidiaries in its Performance Materials and Performance Chemicals businesses. The Company recorded these swap agreements at fair value as assets or liabilities in its consolidated balance sheet. As the derivatives are designated and qualify as net investment hedges, changes in the fair value of the swaps attributable to changes in the spot exchange rates are recognized in cumulative translation adjustment (“CTA”) within OCI and are held there until the hedged net investments are sold or substantially liquidated. Upon such sale or liquidation, the amount recognized in CTA is reclassified to earnings and reported in the same line item as the gain or loss on the liquidation of the net investments. Changes in the fair value of the swaps attributable to the cross-currency basis spread are excluded from the assessment of hedge effectiveness and are recorded in current period earnings. In March 2021, as a result of the divestitures of the Performance Materials and Performance Chemicals businesses, the Company settled its cross-currency swaps. At the date of settlement, the total notional value of the cross-currency swaps was $311,380. The Company paid $13,170 in cash to settle the swaps, which is included in n et cash used in investing activities, discontinued operations in the Company’s condensed consolidated statement of cash flows for the three months ended March 31, 2021, as the underlying subsidiary subject to the net investment hedging relationship is part of the Performance Chemicals business. The fair values of derivative instruments held as of March 31, 2022 and December 31, 2021 are shown below: Balance sheet location March 31, December 31, Derivative assets: Derivatives designated as cash flow hedges: Interest rate caps Prepaid and other current assets 2,982 — Interest rate caps Other long-term assets $ 15,169 $ 1,080 Total derivative assets $ 18,151 $ 1,080 Derivative liabilities: Derivatives designated as cash flow hedges: Interest rate caps Accrued liabilities $ 304 $ 1,288 Total derivative liabilities $ 304 $ 1,288 The following tables show the effect of the Company’s derivative instruments designated as cash flow hedges on AOCI for the three months ended March 31, 2022 and 2021: Three months ended March 31, 2022 2021 Location of gain (loss) reclassified from AOCI into income Amount of gain (loss) recognized in OCI on derivatives Amount of gain (loss) reclassified from AOCI into income Amount of gain (loss) recognized in OCI on derivatives Amount of gain (loss) reclassified from AOCI into income Interest rate caps Interest (expense) income $ 17,612 $ (683) $ 912 $ (109) The following tables show the effect of the Company’s cash flow hedge accounting on the condensed consolidated statements of income for the three months ended March 31, 2022 and 2021: Location and amount of gain (loss) recognized in income on cash flow hedging relationships Three months ended March 31, 2022 2021 Interest (expense) Interest (expense) Total amounts of income and expense line items presented in the statement of income in which the effects of cash flow hedges are recorded $ (8,450) $ (10,456) The effects of cash flow hedging: Gain (loss) on cash flow hedging relationships: Interest contracts: Amount of gain (loss) reclassified from AOCI into income (683) (109) The amount of unrealized losses in AOCI related to the Company’s cash flow hedges that is expected to be reclassified to the condensed consolidated statement of income over the next twelve months is $545 as of March 31, 2022. The following table shows the effect of the Company’s net investment hedges on AOCI and the condensed consolidated statements of income for the three months ended March 31, 2021: Amount of pre-tax gain (loss) recognized in OCI on derivative Location of gain (loss) reclassified from AOCI into income Amount of gain (loss) reclassified from AOCI into income Location of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) Cross-currency interest rate swaps $ 9,787 Net (loss) income from discontinued operations, net of tax $ — Interest (expense) income $ 545 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 15. Income Taxes: The effective income tax rate for the three months ended March 31, 2022 was 42.1% compared to 65.4% for the three months ended March 31, 2021. The Company’s effective income tax rate has fluctuated primarily due to changes in income mix, the impacts of the Global Intangible Low Taxed Income (“GILTI”) tax rules, discrete impacts related to intraperiod allocation revaluation of deferred tax assets and liabilities as a result of the divestiture of the Performance Chemicals business, tax rate changes and changes in foreign exchange gains and losses, which create permanent differences in certain jurisdictions. The difference between the U.S. federal statutory income tax rate and the Company’s effective income tax rate for the three months ended March 31, 2022 was mainly due to state and local taxes, a discrete shortfall tax expense related to stock compensation, and a discrete tax expense associated with the Employee Retention Credit. The difference between the U.S. federal statutory income tax rate and the Company’s effective income tax rate for the three months ended March 31, 2021 was mainly due to state and local taxes, discrete tax impacts related to intra-period allocation revaluation of deferred tax assets and liabilities as a result of the Performance Chemicals divestiture, and the tax effect of permanent differences related to foreign currency exchange gain or loss. |
Benefit Plans
Benefit Plans | 3 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Benefit Plans | 16. Benefit Plans: The following tables present the components of net periodic cost (benefit) for the Company-sponsored defined benefit pension and postretirement plans, which cover certain employees and retirees located in the U.S. Defined Benefit Pension Plans Three months ended 2022 2021 Interest cost 604 551 Expected return on plan assets (1,110) (1,094) Net periodic benefit $ (506) $ (543) Other Postretirement Benefit Plan Three months ended 2022 2021 Interest cost 4 4 Amortization of prior service credit (53) (58) Amortization of net loss 1 1 Net periodic benefit $ (48) $ (53) |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | 17. Commitments and Contingent Liabilities: There is a risk of environmental impact in the Company’s manufacturing operations. The Company’s environmental policies and practices are designed to comply with existing laws and regulations and to minimize the possibility of significant environmental impact. The Company is also subject to various other lawsuits and claims with respect to matters such as governmental regulations, labor and other actions arising out of the normal course of business. All claims that are probable and reasonably estimable have been accrued for in the Company’s condensed consolidated financial statements. When these matters are ultimately concluded and determined, the Company believes that there will be no material adverse effect on its consolidated financial position, results of operations or liquidity. |
Reportable Segments
Reportable Segments | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Reportable Segments | 18. Reportable Segments: Summarized financial information for the Company’s reportable segments is shown in the following table: Three months ended 2022 2021 Sales: Ecoservices $ 154,060 $ 100,222 Catalyst Technologies (1) 25,654 26,402 Total $ 179,714 $ 126,624 Adjusted EBITDA: (2) Ecoservices $ 49,341 $ 33,002 Catalyst Technologies (3) 16,975 18,469 Unallocated corporate expenses (7,076) (9,167) Total $ 59,240 $ 42,304 (1) Excludes the Company’s proportionate share of sales from the Zeolyst International and Zeolyst C.V. joint ventures (collectively, the “Zeolyst Joint Venture”) accounted for using the equity method (see Note 11 to these condensed consolidated financial statements for further information). The proportionate share of sales is $28,977 and $28,978 for the three months ended March 31, 2022 and 2021, respectively. (2) The Company defines Adjusted EBITDA as EBITDA adjusted for certain items as noted in the reconciliation below. Management evaluates the performance of its segments and allocates resources based on several factors, of which the primary measure is Adjusted EBITDA. Adjusted EBITDA should not be considered as an alternative to net income as an indicator of the Company’s operating performance. Adjusted EBITDA as defined by the Company may not be comparable with EBITDA or Adjusted EBITDA as defined by other companies. (3) The Adjusted EBITDA from the Zeolyst Joint Venture included in the Catalyst Technologies segment is $11,474 for the three months ended March 31, 2022, which includes $5,787 of equity in net income plus $1,601 of amortization of investment in affiliate step-up and $4,087 of joint venture depreciation, amortization and interest. The Adjusted EBITDA from the Zeolyst Joint Venture included in the Catalyst Technologies segment is $10,537 for the three months ended March 31, 2021, which includes $5,237 of equity in net income plus $1,658 of amortization of investment in affiliate step-up and $3,645 of joint venture depreciation, amortization and interest. A reconciliation of net income (loss) to Ecovyst to Adjusted EBITDA is as follows: Three months ended 2022 2021 Reconciliation of net income (loss) from continuing operations to Adjusted EBITDA Net income (loss) from continuing operations $ 7,875 $ (2,748) Provision (benefit) for income taxes 5,720 (5,190) Interest expense, net 8,450 10,456 Depreciation and amortization 19,546 19,500 EBITDA 41,591 22,018 Joint venture depreciation, amortization and interest 4,087 3,645 Amortization of investment in affiliate step-up 1,601 1,658 Net loss on asset disposals 133 778 Foreign exchange losses 647 5,101 LIFO expense (benefit) 245 (253) Transaction and other related costs 4,281 472 Equity-based compensation 7,294 6,305 Restructuring, integration and business optimization expenses 352 2,259 Defined benefit pension plan benefit (554) (595) Other (437) 916 Adjusted EBITDA $ 59,240 $ 42,304 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2022 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | 19. Stock-Based Compensation: The Company has an equity incentive plan under which it grants common stock awards to employees, directors and affiliates of the Company. At March 31, 2022, 8,594,638 shares of common stock were available for issuance under the plan. The Company settles these awards through the issuance of new shares. Restricted Stock Units and Performance Stock Units Restricted Stock Units During the three months ended March 31, 2022, the Company granted 2,645,758 restricted stock units under its equity incentive plan. Each restricted stock unit provides the recipient with the right to receive a share of common stock subject to graded vesting terms based on service, which for the awards granted during the three months ended March 31, 2022, generally requires approximately one year of service for members of the Company’s board of directors and approximately three years of service for employees. The awards granted during the three months ended March 31, 2022 also included a special grant for certain employees based on service which cliff vests on July 1, 2023. The value of the restricted stock units granted during the three months ended March 31, 2022 was based on the average of the high and low trading prices of the Company’s common stock on the NYSE on the preceding trading day, in accordance with the Company’s policy for valuing such awards. Compensation expense related to the restricted stock units is recognized on a straight-line basis over the respective vesting period. Performance Stock Units 2022 Grants During the three months ended March 31, 2022, the Company granted 245,380 performance stock units (at target) under its equity incentive plan. The performance stock units granted during the three months ended March 31, 2022 provide the recipients with the right to receive shares of common stock dependent on the achievement of a total shareholder return (“TSR”) goal, and are generally subject to the provision of service through the vesting date of the award. The performance period for the TSR goal is measured based on a three-year performance period from January 1, 2022 through December 31, 2024. The TSR goal is based on the Company’s actual TSR percentage increase over the performance period. Depending on the Company’s performance relative to the TSR goal, each performance stock unit award recipient is eligible to receive a percentage of the target number of shares granted to the recipient, ranging from zero to 200%. The performance stock units, to the extent earned, will vest on the date the Company’s compensation and governance committee certifies the achievement of the performance metric for the three-year period ending December 31, 2024, which will occur subsequent to the end of the performance period and after the Company files its annual consolidated financial statements for the year ending December 31, 2024. The TSR goal is considered a market condition as opposed to a vesting condition. Because a market condition is not considered a vesting condition, it is reflected in the grant date fair value of the award and the associated compensation cost based on the fair value of the award is recognized over the performance period, regardless of whether the Company actually achieves the market condition or the level of achievement, as long as service is provided by the recipient. The Company used a Monte Carlo simulation to estimate the fair value of the awards, with the following assumptions: Expected dividend yield — % Risk-free interest rate 1.24 % Expected volatility 44.00 % Expected term (in years) 2.96 Stock price $ 10.41 2019 Grants During the three months ended March 31, 2022, the Company’s compensation and governance committee certified the achievement of the performance metrics for the three-year period ended December 31, 2021, related to the performance stock units granted during the year ended December 31, 2019. These awards provided the recipients with the right to receive shares of common stock dependent on the achievement of two Company-specific financial performance targets and the provision of service through the vesting date, with each award holder eligible to earn a percentage of the target number of shares granted to the holder, ranging from zero to 200%. The awards vested during the three months ended March 31, 2022 at 100% of target. Award Activity The following table summarizes the activity for the Company’s restricted stock units and performance stock units for the three months ended March 31, 2022: Restricted Stock Units Performance Stock Units Number of Weighted Average Grant Date Fair Value (per share) Number of Weighted Average Grant Date Fair Value (per share) Nonvested as of December 31, 2021 2,507,421 $ 15.68 1,117,555 $ 16.91 Granted 2,645,758 $ 10.29 245,380 $ 8.95 Vested (1,316,703) $ 15.67 (496,442) $ 15.41 Forfeited (268,567) $ 14.96 (14,664) $ 12.08 Nonvested as of March 31, 2022 3,567,909 $ 11.74 851,829 $ 15.50 Stock-Based Compensation Expense For the three months ended March 31, 2022 and 2021, stock-based compensation expense for the Company was $7,294 and $6,305, respectively. The associated income tax benefit recognized in the statements of income for the three months ended March 31, 2022 and 2021 was $1,788 and $1,543, respectively. With the new grants of restricted stock units and performance stock units during the three months ended March 31, 2022, unrecognized compensation cost at March 31, 2022 was $39,583 for restricted stock units and $7,414 for performance stock units considered probable of vesting. The weighted-average period over which these costs are expected to be recognized at March 31, 2022 is 1.96 years for the restricted stock units and 1.72 years for the performance stock units. Activity related to the Company’s stock options and restricted stock awards was not material for the three months ended March 31, 2022. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 20. Earnings per Share: Basic earnings per share is calculated as income (loss) available to common stockholders, divided by the weighted average number of common shares outstanding during the period. The weighted average number of common shares outstanding during the period for the computation of basic earnings per share excludes restricted stock awards that have legally been issued but are nonvested during the period, as the sale of these shares is prohibited pending satisfaction of certain vesting conditions by the award recipients in order to earn the rights to the shares. Diluted earnings per share is calculated as income (loss) available to common stockholders, divided by the weighted average number of common and potential common shares outstanding during the period, if dilutive. Potential common shares reflect (1) unvested restricted stock awards and restricted stock units with service vesting conditions, (2) performance stock units with vesting conditions considered probable of achievement and (3) options to purchase common stock, all of which have been included in the diluted earnings per share calculation using the treasury stock method. The reconciliation from basic to diluted weighted average shares outstanding is as follows: Three months ended 2022 2021 Weighted average shares outstanding – Basic 137,684,773 136,006,082 Dilutive effect of unvested common shares and restricted stock units with service conditions, performance stock units considered probable of vesting and assumed stock option exercises and conversions 1,064,292 — Weighted average shares outstanding – Diluted 138,749,065 136,006,082 Basic and diluted income (loss) per share are calculated as follows: Three months ended 2022 2021 Numerator: Income (loss) from continuing operations attributable to Ecovyst Inc. $ 7,875 $ (2,748) Loss from discontinued operations attributable to Ecovyst Inc. — (89,887) Net income (loss) attributable to Ecovyst Inc. $ 7,875 $ (92,635) Denominator: Weighted average shares outstanding – Basic 137,684,773 136,006,082 Weighted average shares outstanding – Diluted 138,749,065 136,006,082 Net loss per share: Basic income (loss) per share - continuing operations 0.06 (0.02) Diluted income (loss) per share - continuing operations 0.06 (0.02) Basic loss per share - discontinued operations — (0.66) Diluted loss per share - discontinued operations — (0.66) Basic income (loss) per share $ 0.06 $ (0.68) Diluted income (loss) per share $ 0.06 $ (0.68) The table below presents the details of the Company’s weighted average equity-based awards outstanding during each respective period that were excluded from the calculation of diluted earnings per share: Three months ended 2022 2021 Restricted stock awards with performance only targets not yet achieved 613,903 883,380 Stock options with performance only targets not yet achieved 326,689 376,812 Anti-dilutive restricted stock awards, restricted stock units and performance stock units — — Anti-dilutive stock options 807,301 — Restricted stock awards and stock options with performance only vesting conditions were not included in the dilution calculation, as the performance targets have not been achieved nor were probable of achievement as of the end of the respective periods. Certain stock options to purchase shares of common stock were excluded from the computation of diluted earnings per share for the respective periods, because the combination of the options’ exercise price and remaining unamortized stock-based compensation expense was greater than the average market price of the common shares. Anti-dilutive awards are not included in the dilution calculation, as their inclusion would have the effect of increasing diluted income per share. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | 21. Supplemental Cash Flow Information: With the exception of operating leases, the following table presents supplemental cash flow information for the consolidated Company: Three months ended 2022 2021 Cash paid during the period for: Income taxes, net of refunds $ 10,662 $ 4,248 Interest (1) 8,363 17,791 Non-cash investing activity: Capital expenditures acquired on account but unpaid as of the period end 4,674 8,118 Right-of-use assets obtained in exchange for new lease liabilities (non-cash): Operating leases 2,955 4,738 (1) Cash paid for interest is shown net of capitalized interest for the periods presented and excludes $2,307 of net interest proceeds on swaps designated as net investment hedges for the three months ended March 31, 2021, which are included within cash flows from investing activities, discontinued operations in the Company’s condensed consolidated statements of cash flows. The followin g table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets as of March 31, 2022 and 2021 to the total of the same amounts shown in the condensed consolidated statements of cash flows for the three months then ended: March 31, 2022 2021 Cash and cash equivalents $ 129,748 $ 55,171 Restricted cash included in prepaid and other current assets — 1,591 Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows $ 129,748 $ 56,762 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 22. Subsequent Events: On April 27, 2022, the Board approved a plan to purchase up to $450,000 of Ecovyst Inc. common stock over the next four years under a stock repurchase program. See Note 6 to these condensed consolidated financial statements for further information. Other than this item, the Company has evaluated subsequent events since the balance sheet date and determined that there are no additional items to disclose. |
Background and Basis of Prese_2
Background and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of PresentationThe condensed consolidated financial statements included herein are unaudited. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations for interim reporting. In the opinion of management, all adjustments of a normal and recurring nature necessary to state fairly the financial position and results of operations have been included. The results of operations are not necessarily indicative of the expected results for the full year. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. |
Recently Issued Accounting Standards | Recently Adopted Accounting Standards In November 2021, the FASB issued guidance that requires entities to provide certain disclosures when they (1) have received government assistance and (2) use a grant or contribution accounting model by analogy to other accounting guidance. Previously, there was no guidance under GAAP on recognizing or measuring government grants to business entities. The new guidance does not provide any additional guidance on this topic; rather, it only provides guidance on required disclosures for business entities that receive government assistance and apply another grant or contribution accounting framework by analogy. The new guidance is effective for fiscal years beginning after December 15, 2021 with the new disclosures required on an annual basis, and can be applied either prospectively or retrospectively. The Company adopted the new guidance on January 1, 2022 and will include the disclosures as required in its annual reporting with respect to any government assistance or grants subject to the scope of the guidance to the extent material. Accounting Standards Not Yet Adopted In October 2021, the FASB issued guidance that requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with revenue recognition guidance. Under current GAAP, contract assets and contract liabilities acquired in a business combination are recorded by the acquirer at fair value. The new guidance creates an exception to the general recognition and measurement principles related to business combinations, and is expected to result in the acquirer recognizing contract assets and liabilities at the same amounts recorded by the acquiree. The new guidance is effective for business combinations occurring during fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of the new guidance, which would only be applied prospectively to business combinations upon the adoption of the guidance. In March 2020 and January 2021, the FASB issued guidance to address certain accounting consequences from the anticipated transition from the use of the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. The new guidance contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance is optional and may be elected over time as reference rate reform activities occur. During the year ended December 31, 2020, the Company elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index of the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. During the year ended December 31, 2021, the FASB extended the guidance adoption date to June 30, 2023. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. |
Fair Value Measurement | Derivative contracts Derivative assets and liabilities can be exchange-traded or traded over-the-counter (“OTC”). The Company generally values exchange-traded derivatives using models that calibrate to market transactions and eliminate timing differences between the closing price of the exchange-traded derivatives and their underlying instruments. OTC derivatives are valued using market transactions and other market evidence whenever possible, including market-based inputs to models, model calibration to market transactions, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. When models are used, the selection of a particular model to value an OTC derivative depends on the contractual terms of, and specific risks inherent in, the instrument as well as the availability of pricing information in the market. The Company generally uses similar models to value similar instruments. Valuation models require a variety of inputs, including contractual terms, market prices and rates, forward curves, measures of volatility, and correlations of such inputs. For OTC derivatives that trade in liquid markets, such as forward contracts, swaps and options, model inputs can generally be corroborated by observable market data by correlation or other means, and model selection does not involve significant management judgment. As of March 31, 2022, th e Company had interest rate c aps th at were fair valued using Level 2 inputs. In addition, the Company applies a credit valuation adjustment to reflect credit risk which is calculated based on credit default swaps. To the extent that the Company’s net exposure under a specific master agreement is an asset, the Company utilizes the counterparty’s default swap rate. If the net exposure under a specific master agreement is a liability, the Company utilizes a default swap rate comparable to Ecovyst. The credit valuation adjustment is added to the discounted fair value to reflect the exit price that a market participant would be willing to receive to assume the Company’s liabilities or that a market participant would be willing to pay for the Company’s assets. |
Discontinued Operations and Dis
Discontinued Operations and Disposal Groups (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued operations | The following table summarizes the results of discontinued operations related to the Performance Chemicals business for the three months ended March 31, 2021: Three months ended Sales $ 164,523 Cost of goods sold 125,853 Selling, general and administrative expenses 11,716 Other operating expense, net 17,480 Goodwill impairment charge 95,594 Operating loss (86,120) Equity in net (income) from affiliated companies (38) Interest expense, net (1) 3,215 Other income, net (5,523) Loss from discontinued operations before income tax (83,774) Provision for income taxes 4,411 Loss from discontinued operations, net of tax $ (88,185) (1) Upon the close of the transaction, the Company used a portion of the net proceeds to repay a portion of its outstanding debt amounting to $526,363. Prior to the Company’s debt refinancing in June 2021, the Company’s outstanding term loan facilities had mandatory repayment provisions. As a result, interest expense has been allocated to discontinued operations on the basis of the Company’s total repayment of $526,363. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The Company’s portfolio of products is integrated into a variety of end uses, which are described in the table below. Key End Uses Key Products Industrial & process chemicals • Sulfur derivatives for industrial production • Treatment services Fuels & emission control • Refining hydrocracking catalysts • Emission control catalysts • Catalyst recycling regeneration services Packaging & engineered plastics • Catalysts for high-density polyethylene and chemicals syntheses • Antiblocks for film packaging • Sulfur derivatives for nylon production Natural resources • Sulfur derivatives for mining The following tables disaggregate the Company’s sales, by segment and end use, for the three months ended March 31, 2022 and 2021: Three months ended March 31, 2022 Ecoservices Catalyst Technologies Total Industrial & process chemicals $ 32,854 $ — $ 32,854 Fuels & emission control (1) 71,658 — 71,658 Packaging & engineered plastics 24,479 25,654 50,133 Natural resources 25,069 — 25,069 Total segment sales $ 154,060 $ 25,654 $ 179,714 Three months ended March 31, 2021 Ecoservices Catalyst Technologies Total Industrial & process chemicals $ 16,947 $ — $ 16,947 Fuels & emission control (1) 55,192 — 55,192 Packaging & engineered plastics 10,622 26,402 37,024 Natural resources 17,461 — 17,461 Total segment sales $ 100,222 $ 26,402 $ 126,624 (1) As described in Note 1, the Company experiences seasonal s ales fluctuations to customers in the fuels & emission control end use. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring | The following table presents information about the Company’s assets and liabilities that were measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021, and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. March 31, Quoted Prices in Significant Other Significant Derivative assets: Interest rate caps (Note 14) $ 18,151 $ — $ 18,151 $ — Derivative liabilities: Interest rate caps (Note 14) $ 304 $ — $ 304 $ — December 31, Quoted Prices in Significant Other Significant Derivative assets: Interest rate caps (Note 14) $ 1,080 $ — $ 1,080 $ — Derivative liabilities: Interest rate caps (Note 14) $ 1,288 $ — $ 1,288 $ — |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables present the tax effects of each component of other comprehensive income (loss) for the three months ended March 31, 2022 and 2021: Three months ended March 31, 2022 2021 Pre-tax Tax benefit/ After-tax amount Pre-tax Tax benefit/ After-tax amount Defined benefit and other postretirement plans: Amortization of net gains $ 1 $ — $ 1 $ 1 $ — $ 1 Amortization of prior service cost (53) 13 (40) (58) 14 (44) Benefit plans, net (52) 13 (39) (57) 14 (43) Net gain from hedging activities 18,296 (4,574) 13,722 1,020 (255) 765 Foreign currency translation (1) (2,305) — (2,305) (6,308) 2,447 (3,861) Other comprehensive income (loss) $ 15,939 $ (4,561) $ 11,378 $ (5,345) $ 2,206 $ (3,139) (1) The income tax benefit or expense included in other comprehensive income is attributed to the portion of foreign currency translation associated with the Company’s cross-currency interest rate swaps for the three months ended March 31, 2021, for which the tax effect is based on the applicable U.S. deferred income tax rate. See Note 14 to these condensed consolidated financial statements for information regarding the Company’s cross-currency interest rate swaps, which were settled in March 2021. The following table presents the changes in accumulated other comprehensive income (loss), net of tax, by component for the three months ended March 31, 2022 and 2021: Defined benefit Net gain (loss) Foreign Total December 31, 2021 $ 11,072 $ 2,254 $ (19,118) $ (5,792) Other comprehensive income (loss) before reclassifications (78) 13,208 (2,305) 10,825 Amounts reclassified from accumulated other comprehensive income (1) 39 514 — 553 March 31, 2022 $ 11,033 $ 15,976 $ (21,423) $ 5,586 December 31, 2020 $ 5,278 $ (660) $ (19,883) $ (15,265) Other comprehensive income (loss) before reclassifications (86) 683 (3,467) (2,870) Amounts reclassified from accumulated other comprehensive income (1) 43 82 — 125 March 31, 2021 $ 5,235 $ 105 $ (23,350) $ (18,010) (1) See the following table for details about these reclassifications. Amounts in parentheses indicate debits. |
Reclassification out of Accumulated Other Comprehensive Income | The following table presents the reclassifications out of accumulated other comprehensive income for the three months ended March 31, 2022 and 2021: Details about Accumulated Other Comprehensive Amounts Reclassified from Accumulated Other Comprehensive Income (1) Affected Line Item where Three months ended 2022 2021 Amortization of defined benefit and other postretirement items: Prior service (cost) credit $ (53) $ (58) Other income (expense) (2) Actuarial gains (losses) 1 1 Other income (expense) (2) (52) (57) Total before tax 13 14 Tax benefit (expense) $ (39) $ (43) Net of tax Gains and losses on cash flow hedges: Interest rate caps $ (683) $ (109) Interest expense 169 27 Tax benefit $ (514) $ (82) Net of tax Total reclassifications for the period $ (553) $ (125) Net of tax (1) Amounts in parentheses indicate debits to profit/loss. (2) These accumulated other comprehensive income (loss) components are components of net periodic pension and other postretirement cost (see Note 16 to these condensed consolidated financial statements for additional details). |
Acquisition (Tables)
Acquisition (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Business Combinations [Abstract] | |
Purchase price allocation | The following table sets forth the calculation of the purchase price to the identifiable net assets acquired with respect to the Acquisition, which was complete as of December 31, 2021 : Purchase Cash paid, net of cash acquired $ 42,639 Holdback 1,000 Total consideration, net of cash acquired $ 43,639 Recognized amounts of identifiable assets acquired and liabilities assumed: Receivables $ 1,368 Inventories 204 Prepaid and other current assets 351 Property, plant and equipment 5,046 Other intangible assets 22,100 Other long-term assets 187 Fair value of assets acquired 29,256 Accounts payable 207 Accrued liabilities 188 Fair value of net identifiable assets acquired 28,861 Goodwill 14,778 $ 43,639 |
Finite-Lived Intangible Assets Acquired as Part of Business Combination | The valuation of intangibles assets acquired and the related weighted-average amortization periods were as follows: Amount Weighted-Average Intangible assets subject to amortization: Customer relationships $ 16,000 10 Technical know-how 3,800 10 Contracts 700 5 Trade names 1,600 10 Total intangible assets subject to amortization $ 22,100 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The change in the carrying amount of goodwill for the three months ended March 31, 2022 is summarized as follows: Ecoservices Catalyst Technologies Total Balance as of December 31, 2021 $ 326,670 $ 79,469 $ 406,139 Goodwill adjustments (1) (81) — (81) Foreign exchange impact — (754) (754) Balance as of March 31, 2022 $ 326,589 $ 78,715 $ 405,304 (1) During the three months ended March 31, 2022, the Company recorded an adjustment of $81 between goodwill and deferred tax liabilities related to the final tax purchase price allocation for the Chem32 acquisition. |
Other Operating Expense, Net (T
Other Operating Expense, Net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Operating Expense, Net | A summary of other operating expense, net is as follows: Three months ended 2022 2021 Amortization expense $ 2,656 $ 2,186 Transaction and other related costs 4,281 472 Restructuring, integration and business optimization costs (1) 352 2,259 Net loss on asset disposals 133 778 Other, net 341 (188) $ 7,763 $ 5,507 (1) During the three months ended March 31, 2021, the Company’s results were impacted by costs associated with severance charges for certain executives and employees. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Inventories, net are classified and valued as follows: March 31, December 31, Finished products and work in process $ 46,864 $ 46,894 Raw materials 7,884 6,919 $ 54,748 $ 53,813 Valued at lower of cost or market: LIFO basis $ 33,603 $ 33,330 Valued at lower of cost and net realizable value: FIFO or average cost basis 21,145 20,483 $ 54,748 $ 53,813 |
Investments in Affiliated Com_2
Investments in Affiliated Companies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | The Company accounts for investments in affiliated companies under the equity method. Affiliated companies accounted for on the equity basis as of March 31, 2022 are as follows: Company Country Percent Zeolyst International USA 50% Zeolyst C.V. Netherlands 50% Following is summarized information of the combined investments (1) : Three months ended 2022 2021 Sales $ 66,683 $ 66,205 Gross profit 23,584 21,946 Operating income 14,636 14,174 Net income 14,698 13,737 (1) Summarized information of the combined investments is presented at 100%; the Company’s share of the net assets and net income of affiliates is calculated based on the percent ownership specified in the table above. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | A summary of property, plant and equipment, at cost, and related accumulated depreciation is as follows: March 31, December 31, Land $ 96,946 $ 97,047 Buildings and improvements 77,953 77,851 Machinery and equipment 713,765 714,435 Construction in progress 54,800 45,952 943,464 935,285 Less: accumulated depreciation (354,731) (339,054) $ 588,733 $ 596,231 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The summary of long-term debt is as follows: March 31, December 31, Senior Secured Term Loan Facility due June 2028 $ 893,250 $ 895,500 ABL Facility — — Total debt 893,250 895,500 Original issue discount (8,440) (8,762) Deferred financing costs (4,724) (4,899) Total debt, net of original issue discount and deferred financing costs 880,086 881,839 Less: current portion (9,000) (9,000) Total long-term debt, excluding current portion $ 871,086 $ 872,839 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivatives Held | The fair values of derivative instruments held as of March 31, 2022 and December 31, 2021 are shown below: Balance sheet location March 31, December 31, Derivative assets: Derivatives designated as cash flow hedges: Interest rate caps Prepaid and other current assets 2,982 — Interest rate caps Other long-term assets $ 15,169 $ 1,080 Total derivative assets $ 18,151 $ 1,080 Derivative liabilities: Derivatives designated as cash flow hedges: Interest rate caps Accrued liabilities $ 304 $ 1,288 Total derivative liabilities $ 304 $ 1,288 |
Effect of Derivative Instruments Designated as Hedges on Other Comprehensive Income | The following tables show the effect of the Company’s derivative instruments designated as cash flow hedges on AOCI for the three months ended March 31, 2022 and 2021: Three months ended March 31, 2022 2021 Location of gain (loss) reclassified from AOCI into income Amount of gain (loss) recognized in OCI on derivatives Amount of gain (loss) reclassified from AOCI into income Amount of gain (loss) recognized in OCI on derivatives Amount of gain (loss) reclassified from AOCI into income Interest rate caps Interest (expense) income $ 17,612 $ (683) $ 912 $ (109) |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following tables show the effect of the Company’s cash flow hedge accounting on the condensed consolidated statements of income for the three months ended March 31, 2022 and 2021: Location and amount of gain (loss) recognized in income on cash flow hedging relationships Three months ended March 31, 2022 2021 Interest (expense) Interest (expense) Total amounts of income and expense line items presented in the statement of income in which the effects of cash flow hedges are recorded $ (8,450) $ (10,456) The effects of cash flow hedging: Gain (loss) on cash flow hedging relationships: Interest contracts: Amount of gain (loss) reclassified from AOCI into income (683) (109) |
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) | The following table shows the effect of the Company’s net investment hedges on AOCI and the condensed consolidated statements of income for the three months ended March 31, 2021: Amount of pre-tax gain (loss) recognized in OCI on derivative Location of gain (loss) reclassified from AOCI into income Amount of gain (loss) reclassified from AOCI into income Location of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) Cross-currency interest rate swaps $ 9,787 Net (loss) income from discontinued operations, net of tax $ — Interest (expense) income $ 545 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Defined Benefit Pension Plans | |
Defined Benefit Plan Disclosure | |
Components of Net Periodic Expense (Benefit) | Defined Benefit Pension Plans Three months ended 2022 2021 Interest cost 604 551 Expected return on plan assets (1,110) (1,094) Net periodic benefit $ (506) $ (543) |
Other Postretirement Benefits Plans | |
Defined Benefit Plan Disclosure | |
Components of Net Periodic Expense (Benefit) | Other Postretirement Benefit Plan Three months ended 2022 2021 Interest cost 4 4 Amortization of prior service credit (53) (58) Amortization of net loss 1 1 Net periodic benefit $ (48) $ (53) |
Reportable Segments (Tables)
Reportable Segments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Reportable Segments to Consolidated | Summarized financial information for the Company’s reportable segments is shown in the following table: Three months ended 2022 2021 Sales: Ecoservices $ 154,060 $ 100,222 Catalyst Technologies (1) 25,654 26,402 Total $ 179,714 $ 126,624 Adjusted EBITDA: (2) Ecoservices $ 49,341 $ 33,002 Catalyst Technologies (3) 16,975 18,469 Unallocated corporate expenses (7,076) (9,167) Total $ 59,240 $ 42,304 (1) Excludes the Company’s proportionate share of sales from the Zeolyst International and Zeolyst C.V. joint ventures (collectively, the “Zeolyst Joint Venture”) accounted for using the equity method (see Note 11 to these condensed consolidated financial statements for further information). The proportionate share of sales is $28,977 and $28,978 for the three months ended March 31, 2022 and 2021, respectively. (2) The Company defines Adjusted EBITDA as EBITDA adjusted for certain items as noted in the reconciliation below. Management evaluates the performance of its segments and allocates resources based on several factors, of which the primary measure is Adjusted EBITDA. Adjusted EBITDA should not be considered as an alternative to net income as an indicator of the Company’s operating performance. Adjusted EBITDA as defined by the Company may not be comparable with EBITDA or Adjusted EBITDA as defined by other companies. (3) The Adjusted EBITDA from the Zeolyst Joint Venture included in the Catalyst Technologies segment is $11,474 for the three months ended March 31, 2022, which includes $5,787 of equity in net income plus $1,601 of amortization of investment in affiliate step-up and $4,087 of joint venture depreciation, amortization and interest. The Adjusted EBITDA from the Zeolyst Joint Venture included in the Catalyst Technologies segment is $10,537 for the three months ended March 31, 2021, which includes $5,237 of equity in net income plus $1,658 of amortization of investment in affiliate step-up and $3,645 of joint venture depreciation, amortization and interest. |
Reconciliation of Net Income (Loss) from Continuing Operations to Adjusted EBITDA | A reconciliation of net income (loss) to Ecovyst to Adjusted EBITDA is as follows: Three months ended 2022 2021 Reconciliation of net income (loss) from continuing operations to Adjusted EBITDA Net income (loss) from continuing operations $ 7,875 $ (2,748) Provision (benefit) for income taxes 5,720 (5,190) Interest expense, net 8,450 10,456 Depreciation and amortization 19,546 19,500 EBITDA 41,591 22,018 Joint venture depreciation, amortization and interest 4,087 3,645 Amortization of investment in affiliate step-up 1,601 1,658 Net loss on asset disposals 133 778 Foreign exchange losses 647 5,101 LIFO expense (benefit) 245 (253) Transaction and other related costs 4,281 472 Equity-based compensation 7,294 6,305 Restructuring, integration and business optimization expenses 352 2,259 Defined benefit pension plan benefit (554) (595) Other (437) 916 Adjusted EBITDA $ 59,240 $ 42,304 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Stock-Based Compensation [Abstract] | |
Schedule of Share-based Payment Award, Performance Stock Units, Monte Carlo Simulation Valuation Assumptions | Expected dividend yield — % Risk-free interest rate 1.24 % Expected volatility 44.00 % Expected term (in years) 2.96 Stock price $ 10.41 |
Schedule of Nonvested Restricted Stock and Performance Stock Unit Activity | The following table summarizes the activity for the Company’s restricted stock units and performance stock units for the three months ended March 31, 2022: Restricted Stock Units Performance Stock Units Number of Weighted Average Grant Date Fair Value (per share) Number of Weighted Average Grant Date Fair Value (per share) Nonvested as of December 31, 2021 2,507,421 $ 15.68 1,117,555 $ 16.91 Granted 2,645,758 $ 10.29 245,380 $ 8.95 Vested (1,316,703) $ 15.67 (496,442) $ 15.41 Forfeited (268,567) $ 14.96 (14,664) $ 12.08 Nonvested as of March 31, 2022 3,567,909 $ 11.74 851,829 $ 15.50 |
Schedule of Nonvested Performance-based Units Activity | The following table summarizes the activity for the Company’s restricted stock units and performance stock units for the three months ended March 31, 2022: Restricted Stock Units Performance Stock Units Number of Weighted Average Grant Date Fair Value (per share) Number of Weighted Average Grant Date Fair Value (per share) Nonvested as of December 31, 2021 2,507,421 $ 15.68 1,117,555 $ 16.91 Granted 2,645,758 $ 10.29 245,380 $ 8.95 Vested (1,316,703) $ 15.67 (496,442) $ 15.41 Forfeited (268,567) $ 14.96 (14,664) $ 12.08 Nonvested as of March 31, 2022 3,567,909 $ 11.74 851,829 $ 15.50 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Reconciliation from Basic to Diluted Weighted Average Number of Shares Outstanding | The reconciliation from basic to diluted weighted average shares outstanding is as follows: Three months ended 2022 2021 Weighted average shares outstanding – Basic 137,684,773 136,006,082 Dilutive effect of unvested common shares and restricted stock units with service conditions, performance stock units considered probable of vesting and assumed stock option exercises and conversions 1,064,292 — Weighted average shares outstanding – Diluted 138,749,065 136,006,082 |
Schedule of Earnings Per Share, Basic and Diluted | Basic and diluted income (loss) per share are calculated as follows: Three months ended 2022 2021 Numerator: Income (loss) from continuing operations attributable to Ecovyst Inc. $ 7,875 $ (2,748) Loss from discontinued operations attributable to Ecovyst Inc. — (89,887) Net income (loss) attributable to Ecovyst Inc. $ 7,875 $ (92,635) Denominator: Weighted average shares outstanding – Basic 137,684,773 136,006,082 Weighted average shares outstanding – Diluted 138,749,065 136,006,082 Net loss per share: Basic income (loss) per share - continuing operations 0.06 (0.02) Diluted income (loss) per share - continuing operations 0.06 (0.02) Basic loss per share - discontinued operations — (0.66) Diluted loss per share - discontinued operations — (0.66) Basic income (loss) per share $ 0.06 $ (0.68) Diluted income (loss) per share $ 0.06 $ (0.68) |
Schedule of Securities Excluded from Computation of Earnings Per Share | The table below presents the details of the Company’s weighted average equity-based awards outstanding during each respective period that were excluded from the calculation of diluted earnings per share: Three months ended 2022 2021 Restricted stock awards with performance only targets not yet achieved 613,903 883,380 Stock options with performance only targets not yet achieved 326,689 376,812 Anti-dilutive restricted stock awards, restricted stock units and performance stock units — — Anti-dilutive stock options 807,301 — |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | With the exception of operating leases, the following table presents supplemental cash flow information for the consolidated Company: Three months ended 2022 2021 Cash paid during the period for: Income taxes, net of refunds $ 10,662 $ 4,248 Interest (1) 8,363 17,791 Non-cash investing activity: Capital expenditures acquired on account but unpaid as of the period end 4,674 8,118 Right-of-use assets obtained in exchange for new lease liabilities (non-cash): Operating leases 2,955 4,738 (1) Cash paid for interest is shown net of capitalized interest for the periods presented and excludes $2,307 of net interest proceeds on swaps designated as net investment hedges for the three months ended March 31, 2021, which are included within cash flows from investing activities, discontinued operations in the Company’s condensed consolidated statements of cash flows. |
Schedule of Cash and Cash Equivalents | The followin g table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets as of March 31, 2022 and 2021 to the total of the same amounts shown in the condensed consolidated statements of cash flows for the three months then ended: March 31, 2022 2021 Cash and cash equivalents $ 129,748 $ 55,171 Restricted cash included in prepaid and other current assets — 1,591 Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows $ 129,748 $ 56,762 |
Restrictions on Cash and Cash Equivalents | The followin g table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets as of March 31, 2022 and 2021 to the total of the same amounts shown in the condensed consolidated statements of cash flows for the three months then ended: March 31, 2022 2021 Cash and cash equivalents $ 129,748 $ 55,171 Restricted cash included in prepaid and other current assets — 1,591 Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows $ 129,748 $ 56,762 |
Background and Basis of Prese_3
Background and Basis of Presentation (Details) $ in Thousands | Dec. 14, 2020USD ($) | Mar. 31, 2022segment |
Background and Basis of Presentation [Line Items] | ||
Number of reporting units | 2 | |
Number of operating segments | 2 | |
Performance Materials | ||
Background and Basis of Presentation [Line Items] | ||
Proceeds from agreement to sell Materials business | $ | $ 650,000 |
Performance Materials Divestitu
Performance Materials Divestiture - Income Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Discontinued Operations [Line Items] | ||
Transaction and other related costs | $ 4,281 | $ 472 |
Equity-based compensation | $ 7,294 | 6,305 |
Performance Materials | ||
Discontinued Operations [Line Items] | ||
Transition Service Agreement Income | 1,571 | |
Transaction and other related costs | 1,446 | |
Equity-based compensation | 653 | |
Income tax benefit on transaction costs and stock-based compensation expense | $ 514 |
Performance Chemicals Divestitu
Performance Chemicals Divestiture - Loss on Sale (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 |
Discontinued Operations [Line Items] | ||||
Additional payment for business divestiture | $ (3,744) | $ 0 | ||
Performance Chemicals | ||||
Discontinued Operations [Line Items] | ||||
Performance Chemicals sale price per definitive agreement | $ 1,100,000 | |||
Payments for business divestiture | $ 978,449 | |||
Loss on sale of Performance Chemicals | $ (95,594) |
Performance Chemicals Divesti_2
Performance Chemicals Divestiture - Income Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Discontinued Operations [Line Items] | ||
Equity in net (income) from affiliated companies | $ 5,749 | $ 5,210 |
Net loss from discontinued operations, net of tax | 0 | (89,770) |
Repayments of long-term debt | 2,250 | 0 |
Net income attributable to the noncontrolling interest - discontinued operations | 0 | 117 |
Net loss attributable to Ecovyst Inc. | 7,875 | (92,635) |
Performance Chemicals | ||
Discontinued Operations [Line Items] | ||
Sales | 164,523 | |
Cost of goods sold | 125,853 | |
Selling, general and administrative expenses | 11,716 | |
Other operating (income) expense, net | 17,480 | |
Goodwill impairment charge | 95,594 | |
Operating loss | (86,120) | |
Equity in net (income) from affiliated companies | (38) | |
Interest expense, net | 3,215 | |
Other income, net | (5,523) | |
Loss from discontinued operations before income tax | (83,774) | |
Provision for income taxes | 4,411 | |
Net loss from discontinued operations, net of tax | (88,185) | |
Repayments of long-term debt | $ 526,363 | |
Net income attributable to the noncontrolling interest - discontinued operations | 117 | |
Net loss attributable to Ecovyst Inc. | $ (88,302) |
Disaggregated Revenue (Details)
Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregated Revenue | ||
Sales | $ 179,714 | $ 126,624 |
Operating segments | ||
Disaggregated Revenue | ||
Sales | 179,714 | 126,624 |
Operating segments | Industrial & process chemicals | ||
Disaggregated Revenue | ||
Sales | 32,854 | 16,947 |
Operating segments | Fuels & emission control | ||
Disaggregated Revenue | ||
Sales | 71,658 | 55,192 |
Operating segments | Packaging & engineered plastics | ||
Disaggregated Revenue | ||
Sales | 50,133 | 37,024 |
Operating segments | Natural resources | ||
Disaggregated Revenue | ||
Sales | 25,069 | 17,461 |
Operating segments | Ecoservices | ||
Disaggregated Revenue | ||
Sales | 154,060 | 100,222 |
Operating segments | Ecoservices | Industrial & process chemicals | ||
Disaggregated Revenue | ||
Sales | 32,854 | 16,947 |
Operating segments | Ecoservices | Fuels & emission control | ||
Disaggregated Revenue | ||
Sales | 71,658 | 55,192 |
Operating segments | Ecoservices | Packaging & engineered plastics | ||
Disaggregated Revenue | ||
Sales | 24,479 | 10,622 |
Operating segments | Ecoservices | Natural resources | ||
Disaggregated Revenue | ||
Sales | 25,069 | 17,461 |
Operating segments | Catalyst Technologies | ||
Disaggregated Revenue | ||
Sales | 25,654 | 26,402 |
Operating segments | Catalyst Technologies | Industrial & process chemicals | ||
Disaggregated Revenue | ||
Sales | 0 | 0 |
Operating segments | Catalyst Technologies | Fuels & emission control | ||
Disaggregated Revenue | ||
Sales | 0 | 0 |
Operating segments | Catalyst Technologies | Packaging & engineered plastics | ||
Disaggregated Revenue | ||
Sales | 25,654 | 26,402 |
Operating segments | Catalyst Technologies | Natural resources | ||
Disaggregated Revenue | ||
Sales | $ 0 | $ 0 |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Recurring - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Derivative assets: | ||
Interest rate caps | $ 18,151 | $ 1,080 |
Derivative liabilities: | ||
Interest rate caps | 304 | 1,288 |
Quoted Prices in Active Markets (Level 1) | ||
Derivative assets: | ||
Interest rate caps | 0 | 0 |
Derivative liabilities: | ||
Interest rate caps | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Derivative assets: | ||
Interest rate caps | 18,151 | 1,080 |
Derivative liabilities: | ||
Interest rate caps | 304 | 1,288 |
Significant Unobservable Inputs (Level 3) | ||
Derivative assets: | ||
Interest rate caps | 0 | 0 |
Derivative liabilities: | ||
Interest rate caps | $ 0 | $ 0 |
Pre-tax and After-tax Component
Pre-tax and After-tax Components of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
After-tax amount | ||
Pre-tax amount | $ 15,939 | $ (5,345) |
Tax benefit/ (expense) | (4,561) | 2,206 |
Total other comprehensive income (loss) | 11,378 | (3,139) |
Amortization of net gains | ||
After-tax amount | ||
Pre-tax amount | 1 | 1 |
Tax benefit/ (expense) | 0 | 0 |
Total other comprehensive income (loss) | 1 | 1 |
Amortization of prior service cost | ||
After-tax amount | ||
Pre-tax amount | (53) | (58) |
Tax benefit/ (expense) | 13 | 14 |
Total other comprehensive income (loss) | (40) | (44) |
Benefit plans, net | ||
After-tax amount | ||
Pre-tax amount | (52) | (57) |
Tax benefit/ (expense) | 13 | 14 |
Total other comprehensive income (loss) | (39) | (43) |
Net gain from hedging activities | ||
After-tax amount | ||
Pre-tax amount | 18,296 | 1,020 |
Tax benefit/ (expense) | (4,574) | (255) |
Total other comprehensive income (loss) | 13,722 | 765 |
Foreign currency translation | ||
After-tax amount | ||
Pre-tax amount | (2,305) | (6,308) |
Tax benefit/ (expense) | 0 | 2,447 |
Total other comprehensive income (loss) | $ (2,305) | $ (3,861) |
Change by Component (Details)
Change by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 740,737 | |
Ending balance | 765,631 | |
Total | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (5,792) | $ (15,265) |
Other comprehensive income (loss) before reclassifications | 10,825 | (2,870) |
Amounts reclassified from accumulated other comprehensive income | 553 | 125 |
Ending balance | 5,586 | (18,010) |
Defined benefit and other postretirement plans | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 11,072 | 5,278 |
Other comprehensive income (loss) before reclassifications | (78) | (86) |
Amounts reclassified from accumulated other comprehensive income | 39 | 43 |
Ending balance | 11,033 | 5,235 |
Net gain (loss) from hedging activities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 2,254 | (660) |
Other comprehensive income (loss) before reclassifications | 13,208 | 683 |
Amounts reclassified from accumulated other comprehensive income | 514 | 82 |
Ending balance | 15,976 | 105 |
Foreign currency translation | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (19,118) | (19,883) |
Other comprehensive income (loss) before reclassifications | (2,305) | (3,467) |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Ending balance | $ (21,423) | $ (23,350) |
Reclassifications out of AOCI (
Reclassifications out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other expense, net | $ 140 | $ 5,174 |
Interest expense, net | 8,450 | 10,456 |
Income before income taxes and noncontrolling interest | (13,595) | 7,938 |
Tax benefit (expense) | 5,720 | (5,190) |
Net (loss) income | (7,875) | 92,518 |
Amount of gain (loss) reclassified from AOCI into income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net (loss) income | (553) | (125) |
Defined benefit and other postretirement plans | Amount of gain (loss) reclassified from AOCI into income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income before income taxes and noncontrolling interest | (52) | (57) |
Tax benefit (expense) | 13 | 14 |
Net (loss) income | (39) | (43) |
Prior service (cost) credit | Amount of gain (loss) reclassified from AOCI into income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other expense, net | (53) | (58) |
Actuarial gains (losses) | Amount of gain (loss) reclassified from AOCI into income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other expense, net | 1 | 1 |
Net gain (loss) from hedging activities | Amount of gain (loss) reclassified from AOCI into income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Tax benefit (expense) | 169 | 27 |
Net (loss) income | (514) | (82) |
Net gain (loss) from hedging activities | Amount of gain (loss) reclassified from AOCI into income | Interest rate caps | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense, net | $ (683) | $ (109) |
Treasury Stock Repurchases (Det
Treasury Stock Repurchases (Details) - USD ($) $ in Thousands | Apr. 27, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 12, 2020 |
Equity, Class of Treasury Stock [Line Items] | ||||
Fair value of shares withheld for tax payments | $ 332 | $ 1,470 | ||
March 2020 Stock Repurchase Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 50,000 | |||
Subsequent Event | April 2022 Stock Repurchase Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 450,000 | |||
Stock repurchase program, period | 4 years |
Purchase Price Allocation (Deta
Purchase Price Allocation (Details) - USD ($) $ in Thousands | Mar. 01, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 |
Business Combination | ||||
Payments to Acquire Businesses, Gross | $ 44,000 | |||
Cash paid, net of cash acquired | $ 645 | |||
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||
Cash paid, net of cash acquired | 41,994 | $ 0 | $ 41,994 | |
Goodwill | 405,304 | $ 406,139 | ||
Chem32 | ||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||
Cash paid, net of cash acquired | 42,639 | |||
Holdback | $ 1,000 | 1,000 | ||
Total consideration, net of cash acquired | 43,639 | |||
Receivables | $ 1,368 | 1,368 | ||
Inventories | 204 | |||
Prepaid and other current assets | 351 | |||
Property, plant and equipment | 5,046 | |||
Other intangible assets | 22,100 | |||
Other long-term assets | 187 | |||
Fair value of assets acquired | 29,256 | |||
Accounts payable | 207 | |||
Accrued liabilities | 188 | |||
Fair value of net assets acquired | 28,861 | |||
Goodwill | 14,778 | |||
Net assets including goodwill acquired | $ 43,639 |
Intangible Asset Acquisitions (
Intangible Asset Acquisitions (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 22,100 |
Customer Relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 16,000 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years |
Intellectual Property | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 3,800 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years |
Contractual Rights | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 700 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years |
Trade Names | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 1,600 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years |
Goodwill (Details)
Goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Goodwill | |
Beginning balance | $ 406,139 |
Goodwill adjustments | (81) |
Foreign exchange impact | (754) |
Ending balance | 405,304 |
Ecoservices | |
Goodwill | |
Beginning balance | 326,670 |
Goodwill adjustments | (81) |
Foreign exchange impact | 0 |
Ending balance | 326,589 |
Catalyst Technologies | |
Goodwill | |
Beginning balance | 79,469 |
Foreign exchange impact | (754) |
Ending balance | $ 78,715 |
Other Operating Expense, Net (D
Other Operating Expense, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Other Income and Expenses [Abstract] | ||
Amortization expense | $ 2,656 | $ 2,186 |
Transaction and other related costs | 4,281 | 472 |
Restructuring, integration and business optimization costs | 352 | 2,259 |
Net loss on asset disposals | 133 | 778 |
Other, net | 341 | (188) |
Other operating expense, net | $ 7,763 | $ 5,507 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Inventory, Net | ||
Finished products and work in process | $ 46,864 | $ 46,894 |
Raw materials | 7,884 | 6,919 |
Inventories, net | 54,748 | 53,813 |
Valued at lower of cost or market: | ||
LIFO basis | 33,603 | 33,330 |
Valued at lower of cost and net realizable value: | ||
FIFO or average cost basis | 21,145 | 20,483 |
Inventories, net | $ 54,748 | $ 53,813 |
Ownership Percentage (Details)
Ownership Percentage (Details) | Mar. 31, 2022 |
Zeolyst International | |
Schedule of Equity Method Investments | |
Ownership percentage | 50.00% |
Zeolyst C.V. | |
Schedule of Equity Method Investments | |
Ownership percentage | 50.00% |
Summarized Income Statement (De
Summarized Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of Equity Method Investments | ||
Gross profit | $ 47,735 | $ 30,119 |
Operating income | 16,436 | 2,482 |
Net income | 7,875 | (92,518) |
Equity Method Investment, Nonconsolidated Investee | ||
Schedule of Equity Method Investments | ||
Sales | 66,683 | 66,205 |
Gross profit | 23,584 | 21,946 |
Operating income | 14,636 | 14,174 |
Net income | $ 14,698 | $ 13,737 |
Investments in Affiliated Com_3
Investments in Affiliated Companies Narrative (Details) - Business Combination - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Business Combination | |||
Net purchase accounting fair value adjustments | $ 235,819 | $ 237,419 | |
Amortization of investment in affiliate step-up | $ 1,601 | $ 1,658 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment | ||
Property, plant and equipment, gross | $ 943,464 | $ 935,285 |
Less: accumulated depreciation | (354,731) | (339,054) |
Property, plant and equipment, net | 588,733 | 596,231 |
Land | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 96,946 | 97,047 |
Buildings and improvements | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 77,953 | 77,851 |
Machinery and equipment | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 713,765 | 714,435 |
Construction in progress | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | $ 54,800 | $ 45,952 |
Property, Plant and Equipment N
Property, Plant and Equipment Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 16,011 | $ 16,526 |
Long-term Debt (Details)
Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument | ||
Total debt | $ 893,250 | $ 895,500 |
Original issue discount | (8,440) | (8,762) |
Deferred financing costs | (4,724) | (4,899) |
Total debt, net of original issue discount and deferred financing costs | 880,086 | 881,839 |
Less: current portion | (9,000) | (9,000) |
Total long-term debt, excluding current portion | 871,086 | 872,839 |
Term Loan Facility | 2021 Term Loan Facility | ||
Debt Instrument | ||
Total debt | 893,250 | 895,500 |
ABL Facility | ||
Debt Instrument | ||
Total debt | $ 0 | $ 0 |
Long-term Debt Narrative (Detai
Long-term Debt Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
2021 Term Loan Facility | ||
Debt Instrument | ||
Long-term debt, fair value | $ 882,084 | $ 894,381 |
Financial Instruments Narrative
Financial Instruments Narrative (Details) € in Thousands, $ in Thousands | Jan. 14, 2022USD ($) | Mar. 31, 2021USD ($) | Jul. 31, 2020USD ($) | Mar. 18, 2020USD ($) | Feb. 20, 2020USD ($) | Nov. 30, 2018USD ($) | Mar. 31, 2022USD ($) | Aug. 31, 2021USD ($) | Mar. 29, 2021USD ($) | Feb. 28, 2018EUR (€) |
Cash flow hedging | ||||||||||
Derivative | ||||||||||
Derivative, notional amount novated | $ 900,000 | |||||||||
Amount of derivative loss expected to be transferred from OCI | $ 545 | |||||||||
Cash flow hedging | November 2018 interest rate caps | ||||||||||
Derivative | ||||||||||
Derivative, cap interest rate | 0.84% | 2.50% | 3.50% | 0.84% | ||||||
Derivative, notional amount | $ 500,000 | |||||||||
Premium paid to acquire derivative instrument | $ 900 | $ 130 | $ 3,380 | $ 4,410 | ||||||
Cash flow hedging | July 2020 Interest Rate Cap [Member] | ||||||||||
Derivative | ||||||||||
Derivative, cap interest rate | 1.00% | 1.00% | ||||||||
Derivative, notional amount | $ 400,000 | |||||||||
Premium paid to acquire derivative instrument | $ 137 | |||||||||
Cash flow hedging | January 2022 Interest Rate Cap expiring October 2024 | ||||||||||
Derivative | ||||||||||
Derivative, cap interest rate | 1.00% | |||||||||
Derivative, notional amount | $ 250,000 | |||||||||
Cash flow hedging | January 2022 Interest Rate Cap expiring October 2025 | ||||||||||
Derivative | ||||||||||
Derivative, cap interest rate | 1.00% | |||||||||
Derivative, notional amount | $ 250,000 | |||||||||
Cash flow hedging | January 2022 Interest Rate Cap | ||||||||||
Derivative | ||||||||||
Premium paid to acquire derivative instrument | $ 4,450 | |||||||||
Net investment hedging | Cross-currency interest rate swaps | ||||||||||
Derivative | ||||||||||
Derivative, notional amount | $ 311,380 | € 280,000 | ||||||||
Premium paid to acquire derivative instrument | $ 13,170 |
Fair Value (Details)
Fair Value (Details) - Derivatives designated as hedging instrument - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Derivative assets: | ||
Total derivative assets | $ 18,151 | $ 1,080 |
Derivative liabilities: | ||
Total derivative liabilities | 304 | 1,288 |
Cash flow hedging | Prepaid and other current assets | Interest rate caps | ||
Derivative assets: | ||
Total derivative assets | 2,982 | 0 |
Cash flow hedging | Other long-term assets | Interest rate caps | ||
Derivative assets: | ||
Total derivative assets | 15,169 | 1,080 |
Cash flow hedging | Accrued liabilities | Interest rate caps | ||
Derivative liabilities: | ||
Total derivative liabilities | $ 304 | $ 1,288 |
Effect on Other Comprehensive I
Effect on Other Comprehensive Income (Details) - Interest rate caps - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Amount of gain (loss) recognized in OCI on derivatives | ||
Amount of gain (loss) recognized in OCI on derivatives | $ 17,612 | $ 912 |
Interest expense | ||
Amount of gain (loss) reclassified from AOCI into income | ||
Amount of gain (loss) reclassified from AOCI into income | $ (683) | $ (109) |
Cash Flow Hedge Impact on Incom
Cash Flow Hedge Impact on Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative | ||
Cost of goods sold | $ (131,979) | $ (96,505) |
Interest Expense | (8,450) | (10,456) |
Gain (loss) on cash flow hedging relationships | Amount of gain (loss) reclassified from AOCI into income | ||
Derivative | ||
Interest Expense | $ (683) | $ (109) |
Net Investment Hedge Impact on
Net Investment Hedge Impact on AOCI (Details) - Cross-currency interest rate swaps $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Derivative | |
Amount of gain (loss) recognized in OCI on derivative | $ 9,787 |
Net (loss) income from discontinued operations, net of tax | |
Derivative | |
Amount of gain (loss) reclassified from AOCI into income | 0 |
Interest (expense) income | |
Derivative | |
Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) | $ 545 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 42.10% | 65.40% |
Net Periodic Pension Expense Be
Net Periodic Pension Expense Benefit (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Defined Benefit Pension Plans | ||
Defined Benefit Plan, Net Periodic Expense (Benefit) | ||
Interest cost | $ 604 | $ 551 |
Expected return on plan assets | (1,110) | (1,094) |
Net periodic benefit | (506) | (543) |
Other Postretirement Benefits Plans | ||
Defined Benefit Plan, Net Periodic Expense (Benefit) | ||
Interest cost | 4 | 4 |
Amortization of prior service credit | (53) | (58) |
Amortization of net loss | 1 | 1 |
Net periodic benefit | $ (48) | $ (53) |
Summary Financial Information b
Summary Financial Information by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting | ||
Sales | $ 179,714 | $ 126,624 |
Adjusted EBITDA | 59,240 | 42,304 |
Equity in net (income) from affiliated companies | 5,749 | 5,210 |
Operating segments | ||
Segment Reporting | ||
Sales | 179,714 | 126,624 |
Operating segments | Ecoservices | ||
Segment Reporting | ||
Sales | 154,060 | 100,222 |
Adjusted EBITDA | 49,341 | 33,002 |
Operating segments | Catalyst Technologies | ||
Segment Reporting | ||
Sales | 25,654 | 26,402 |
Adjusted EBITDA | 16,975 | 18,469 |
Operating segments | Corporate Segment | ||
Segment Reporting | ||
Adjusted EBITDA | (7,076) | (9,167) |
Zeolyst Joint Venture | Catalyst Technologies | ||
Segment Reporting | ||
Sales | 28,977 | 28,978 |
Adjusted EBITDA | 11,474 | 10,537 |
Equity in net (income) from affiliated companies | 5,787 | 5,237 |
Amortization of investment in affiliate step-up | 1,601 | 1,658 |
Joint venture depreciation, amortization and interest | $ 4,087 | $ 3,645 |
Reconciliation of Net Loss to S
Reconciliation of Net Loss to Segment Adjusted EBITDA (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information | ||
Net income (loss) from continuing operations | $ 7,875 | $ (2,748) |
Provision (benefit) for income taxes | 5,720 | (5,190) |
Interest expense, net | 8,450 | 10,456 |
Depreciation and amortization | 19,546 | 19,500 |
EBITDA | 41,591 | 22,018 |
Net loss on asset disposals | 133 | 778 |
Foreign exchange losses | 647 | 5,101 |
Transaction and other related costs | 4,281 | 472 |
Equity-based compensation | 7,294 | 6,305 |
Adjusted EBITDA | 59,240 | 42,304 |
Segment reconciling items | ||
Segment Reporting Information | ||
Joint venture depreciation, amortization and interest | 4,087 | 3,645 |
Amortization of investment in affiliate step-up | 1,601 | 1,658 |
Net loss on asset disposals | 133 | 778 |
Foreign exchange losses | 647 | 5,101 |
LIFO expense (benefit) | 245 | (253) |
Transaction and other related costs | 4,281 | 472 |
Equity-based compensation | 7,294 | 6,305 |
Restructuring, integration and business optimization expenses | 352 | 2,259 |
Defined benefit pension plan benefit | (554) | (595) |
Other | $ (437) | $ 916 |
Stock-Based Compensation Narrat
Stock-Based Compensation Narrative (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Number of shares available for grant (shares) | 8,594,638 |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Granted | 2,645,758 |
Unrecognized stock-based compensation expense | $ | $ 39,583 |
Unrecognized stock-based compensation expense, period for recognition | 1 year 11 months 15 days |
Performance Stock Units (PSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Granted | 245,380 |
Unrecognized stock-based compensation expense | $ | $ 7,414 |
Unrecognized stock-based compensation expense, period for recognition | 1 year 8 months 19 days |
Director | Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Award vesting period | 1 year |
Employee | Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Award vesting period | 3 years |
Minimum | Performance Stock Units (PSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Award vesting percentage | 0.00% |
Maximum | Performance Stock Units (PSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Award vesting percentage | 200.00% |
Performance Stock Units Assumpt
Performance Stock Units Assumptions and Methodology (Details) - 2021 Monte Carlo simulation | 3 Months Ended |
Mar. 31, 2022$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |
Expected dividend yield | 0.00% |
Risk-free interest rate | 1.24% |
Expected volatility | 44.00% |
Expected term (in years) | 2 years 11 months 15 days |
Stock price | $ 10.41 |
Schedule of RSU and PSU Activit
Schedule of RSU and PSU Activity (Details) | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Restricted Stock Units (RSUs) | |
Number of Units | |
Nonvested, beginning balance | shares | 2,507,421 |
Granted | shares | 2,645,758 |
Vested | shares | (1,316,703) |
Forfeited | shares | (268,567) |
Nonvested, ending balance | shares | 3,567,909 |
Weighted Average Grant Date Fair Value (per share) | |
Weighted average grant date fair value, nonvested, beginning balance | $ / shares | $ 15.68 |
Weighted average grant date fair value, granted | $ / shares | 10.29 |
Weighted average grant date fair value, vested | $ / shares | 15.67 |
Weighted average grant date fair value, forfeited | $ / shares | 14.96 |
Weighted average grant date fair value, nonvested, ending balance | $ / shares | $ 11.74 |
Performance Stock Units (PSUs) | |
Number of Units | |
Nonvested, beginning balance | shares | 1,117,555 |
Granted | shares | 245,380 |
Vested | shares | (496,442) |
Forfeited | shares | (14,664) |
Nonvested, ending balance | shares | 851,829 |
Weighted Average Grant Date Fair Value (per share) | |
Weighted average grant date fair value, nonvested, beginning balance | $ / shares | $ 16.91 |
Weighted average grant date fair value, granted | $ / shares | 8.95 |
Weighted average grant date fair value, vested | $ / shares | 15.41 |
Weighted average grant date fair value, forfeited | $ / shares | 12.08 |
Weighted average grant date fair value, nonvested, ending balance | $ / shares | $ 15.50 |
Stock-based compensation expens
Stock-based compensation expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | ||
Share-based payment arrangement, expense | $ 7,294 | $ 6,305 |
Stock-based compensation expense, tax benefit | $ 1,788 | $ 1,543 |
Reconciliation from Basic to Di
Reconciliation from Basic to Diluted Weighted Average Shares Outstanding (Details) - shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Weighted average shares outstanding – Basic (shares) | 137,684,773 | 136,006,082 |
Dilutive effect of unvested common shares and restricted stock units with service conditions, performance stock units considered probable of vesting and assumed stock option exercises and conversions (shares) | 1,064,292 | 0 |
Weighted average shares outstanding – Diluted (shares) | 138,749,065 | 136,006,082 |
Calculation of Basic and Dilute
Calculation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Numerator: | ||
Income (loss) from continuing operations attributable to Ecovyst Inc. | $ 7,875 | $ (2,748) |
Loss from discontinued operations attributable to Ecovyst Inc. | 0 | (89,887) |
Net income (loss) attributable to Ecovyst Inc. | $ 7,875 | $ (92,635) |
Denominator: | ||
Weighted average shares outstanding – Basic (shares) | 137,684,773 | 136,006,082 |
Weighted average shares outstanding – Diluted (shares) | 138,749,065 | 136,006,082 |
Net loss per share: | ||
Basic income (loss) per share—continuing operations | $ 0.06 | $ (0.02) |
Diluted income (loss) per share—continuing operations | 0.06 | (0.02) |
Basic loss per share—discontinued operations | 0 | (0.66) |
Diluted loss per share—discontinued operations | 0 | (0.66) |
Basic income (loss) per share | 0.06 | (0.68) |
Diluted income (loss) per share | $ 0.06 | $ (0.68) |
Anti-dilutive Shares (Details)
Anti-dilutive Shares (Details) - shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Restricted stock awards with performance only targets not yet achieved | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Antidilutive (shares) | 613,903 | 883,380 |
Stock options with performance only targets not yet achieved | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Antidilutive (shares) | 326,689 | 376,812 |
Anti-dilutive restricted stock awards, restricted stock units and performance stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Antidilutive (shares) | 0 | 0 |
Anti-dilutive stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Antidilutive (shares) | 807,301 | 0 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash paid during the period for: | ||
Income taxes, net of refunds | $ 10,662 | $ 4,248 |
Interest | 8,363 | 17,791 |
Non-cash investing activity: | ||
Capital expenditures acquired on account but unpaid as of the period end | 4,674 | 8,118 |
Right-of-use assets obtained in exchange for new lease liabilities (non-cash): | ||
Operating leases | $ 2,955 | 4,738 |
Proceeds from hedge, investing activities | $ 2,307 |
Cash and Restricted Cash Reconc
Cash and Restricted Cash Reconciliation (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Restricted Cash [Abstract] | |||
Cash and cash equivalents | $ 129,748 | $ 140,889 | $ 55,171 |
Restricted cash included in prepaid and other current assets | 0 | 1,591 | |
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows | $ 129,748 | $ 56,762 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - April 2022 Stock Repurchase Program $ in Thousands | Apr. 27, 2022USD ($) |
Equity, Class of Treasury Stock [Line Items] | |
Stock repurchase program, authorized amount | $ 450,000 |
Stock repurchase program, period | 4 years |