NYSE$ECVT

Ecovyst Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Ecovyst reported solid financial performance driven by positive demand trends and strategic initiatives.

Ecovyst reported a 7.4% increase in sales and a 176% increase in net income for Q4 2022. The company's Adjusted EBITDA also increased by 9.4% compared to the same period in 2021. Strong cash generation allowed for significant debt reduction and increased shareholder value through share repurchases.

  • Sales increased by 7.4% compared to Q4 2021, primarily driven by higher average selling prices in Ecoservices.
  • Net income increased by 176% compared to Q4 2021, driven by higher operating income, additional equity in net income from affiliates, and lower provision for income taxes.
  • Adjusted EBITDA increased by 9.4% compared to Q4 2021, driven by higher pricing and higher sales volume.
  • The company repurchased 8,000,000 shares at an average price of $7.88, for a total cost of $63.0 million in connection with a secondary offering.

Headline financials

Total Revenue

$183M

Previous: $170M+7.4%
EPS (adj)

$0.25

Previous: $0.17+47.1%
Adjusted EBITDA

$69.2M

Previous: $63.2M+9.5%
Adjusted EBITDA Margin

31.1%

No prior period
Capital Expenditures

$19.4M

Previous: $15.4M+26.0%
Free Cash Flow

$57.9M

Previous: $29.7M+95.2%
Net Income

$21.5M

Previous: $7.8M+175.6%
Operating Income

$22.1M

Previous: $18M+22.8%
Gross Profit

$49.5M

Previous: $54.5M-9.2%
Cash & Equivalents

$111M

Previous: $141M-21.3%
Total Assets

$1.88B

Previous: $1.93B-2.4%
Stock-Based Comp

$3.21M

Previous: $9M-64.3%

Revenue & EPS history

Ecovyst · Revenue · Quarterly

$183M

Q4 2022+7.4%vs Q4 2021
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

Ecovyst · $160M total across 1 segment · Q4 2022

  • Ecoservices
    $160M+12.5%

Forward guidance

Ecovyst provided full year 2023 guidance with sales between $760 million and $790 million and Adjusted EBITDA between $285 million and $300 million.

Tailwinds

  • Sales of $760 million to $790 million
  • Sales of $145 million to $155 million for proportionate 50% share of Zeolyst Joint Venture, which is excluded from GAAP Sales
  • Adjusted EBITDA of $285 million to $300 million, up 6% from 2022 at the mid-point of the range, and inclusive of impacts from Winter Storm Elliott
  • Adjusted Free Cash Flow of $115 million to $130 million
  • Capital expenditures of $60 million to $70 million

Headwinds

  • Interest expense of $45 million to $50 million
  • Depreciation & Amortization Ecovyst - $80 million to $90 million
  • Zeolyst J.V. Depreciation & Amortization - $14 million to $16 million
  • Sales outlook for 2023 assumes lower average sulfur prices, compared to 2022, and lower projected pass-through of sulfur costs of approximately $95 million.
  • In reliance upon the unreasonable efforts exemption provided under Item 10(e)(1)(i)(B) of Regulation S-K, the Company is not able to provide a reconciliation of its non-GAAP financial guidance to the corresponding GAAP measures without unreasonable effort

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2022

Historical avgQ4 2022

-1.5%

Avg return

Earnings day

-1.9%

Avg return

5 days after

+0.2%

Avg return

30 days after

49%

20 / 41 earnings

Positive

+19.6%

Q3 2024

Best reaction

-29.9%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.3%+0.1%-8.5%
Q4 2025+1.1%+1.3%+13.4%
Q3 2025-1.3%-5.5%+10.8%
Q1 2025+3.5%+13.0%+24.6%
Q4 2024-14.4%-18.6%-22.2%
Q3 2024+19.6%+22.1%+24.8%
Q2 2024-29.9%-34.8%-24.7%
Q1 2024+3.0%+2.6%-2.2%
Q4 2023-1.3%-7.6%+14.0%
Q3 2023+4.4%+2.0%+9.0%
Q2 2023-17.2%-18.3%-14.4%
Q1 2023-7.1%-10.3%-8.5%
Q4 2022-1.4%+6.6%+4.8%
Q3 2022-5.3%-2.8%-7.4%
Q2 2022+5.2%+4.5%-4.6%
Q1 2022-10.2%-13.2%-7.5%
Q4 2021+9.4%+10.3%+19.8%
Q1 2016-16.5%-24.4%-24.2%
Q3 2021+3.6%+5.1%-22.1%
Q2 2021+0.8%+7.0%-15.7%
Q1 2021+1.9%+5.3%+9.5%
Q4 2020+0.3%+0.3%-6.4%
Q3 2020-3.4%-5.3%+9.2%
Q2 2020-8.2%-8.9%-11.2%
Q1 2020-1.1%+4.5%+19.7%
Q4 2019+0.5%-9.2%-37.9%
Q3 2019-0.2%-0.2%-3.3%
Q2 2019+7.5%+10.3%+9.2%
Q1 2019-0.1%-2.0%-1.0%
Q4 2018-2.2%-2.5%-9.4%
Q3 2018+1.9%-4.8%-6.4%
Q2 2017-3.0%-1.9%-2.2%
Q2 2018+0.2%-0.1%-0.8%
Q1 2017-0.1%+3.8%+27.6%
Q1 2018-2.6%-1.0%+25.3%
Q2 2016-4.3%-3.8%+3.2%
Q4 2015-4.3%-3.8%+3.2%
Q4 2017+3.5%+4.1%+8.7%
Q3 2016+0.7%-0.3%+4.4%
Q4 2016+0.7%-0.3%+4.4%
Q3 2017+1.3%-0.6%+3.3%

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