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Sep 30, 2022
Ecovyst Q3 2022 Earnings Report
Reported strong results, driven by sales growth and favorable demand for its products and services. Continued strong pricing mitigated inflationary pressures.
Key Takeaways
Ecovyst Inc. reported a strong third quarter in 2022, with sales up 39% year-over-year to $233 million. Net income increased to $21 million, with diluted earnings per share of $0.16. Adjusted EBITDA rose by 9% to $75 million, with margins at 29%. The company affirmed its 2022 Adjusted EBITDA guidance.
Sales of $233 million, up 39% compared to the third quarter of 2021
Net income of $21 million with diluted earnings per share of $0.16; Adjusted net income of $31 million with Adjusted diluted earnings per share of $0.23
Adjusted EBITDA of $75 million, up 9% year-over-year with Adjusted EBITDA margins of 29%
Year-to-date net cash from operations of $109 million, Adjusted Free Cash Flow of $85 million, and reduced net leverage ratio to 2.8x, compared to 3.3x at year-end 2021
Revenue by Segment
Forward Guidance
Ecovyst anticipates that full-year 2022 Adjusted EBITDA will be at the high end of its prior guidance of $265 million-$275 million.
Positive Outlook
- Sales of $810 million to $830 million
- Sales of $135 million to $145 million for proportionate 50% share of Zeolyst Joint Venture
- Adjusted EBITDA of $265 million to $275 million, up 19% from 2021 at the mid-point of the range
- Adjusted Free Cash Flow of $115 million to $125 million
- Capital Expenditures of $55 million to $65 million
Challenges Ahead
- Sales guidance was reduced to reflect lower anticipated sulfur costs
- Sales outlook for 2022 includes approximately $90 million of higher sales vs. 2021 due to the pass through of increased sulfur costs, which is expected to negatively impact Adjusted EBITDA margin by more than (400) basis points
- Impact of revaluing the reporting entity’s DTAs and DTLs are reflected in continuing operations
Historical Earnings Impact
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Avg. Return Before/After Earnings
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