Ecovyst (ECVT) - 2024 Q4 - Annual Results

Financial Performance - Full year 2024 sales reached $704.5 million, a 1.9% increase from$ 691.1 million in 2023[4] - The company reported a net loss of $6.7 million for the full year 2024, with a net loss margin of 1.0% and diluted net loss per share of$ 0.06[4] - Sales for Q4 2024 were $182.0 million, a 5.3% increase from$ 172.8 million in Q4 2023[25] - Ecoservices segment sales for the fourth quarter were $148.9 million, a 5% increase from$ 141.4 million in the same quarter of 2023[6] - Advanced Silicas sales in the fourth quarter were $33.1 million, an increase of$ 1.7 million compared to the prior year[8] - Ecoservices segment sales increased by 5.3% to $598.3 million in 2024, while Advanced Materials & Catalysts sales remained relatively flat[37] - The company experienced a significant decline in Zeolyst Joint Venture sales, which fell by 25.6% to$ 116.5 million in 2024[37] Adjusted EBITDA and Cash Flow - Adjusted EBITDA for the fourth quarter was $75.9 million, up 8.7% compared to the fourth quarter of 2023, with an Adjusted EBITDA margin of 35.3%[4] - Adjusted EBITDA for 2024 was$ 238.2 million, down 8.3% from $259.9 million in 2023[37] - The company expects 2025 sales to range from$ 755 million to $815 million, with Adjusted EBITDA projected between$ 238 million and $258 million[13] - Full year 2024 net cash from operations was$ 149.9 million, compared to $137.6 million in 2023[10] - Adjusted Free Cash Flow for 2024 was$ 85.5 million, up from $72.3 million in 2023[38] Net Loss and Income - The net loss for the year 2024 was$ 6.7 million, a significant decline from a net income of $71.2 million in 2023[29] - For the three months ended December 31, 2024, the net loss was$ 30.5 million compared to a net income of $30.0 million for the same period in 2023[30] - Adjusted Net Income for 2024 was$ 86.1 million, a decrease from $117.2 million in 2023, reflecting a 26.6% decline[34] - The adjusted net income for Q4 2024 was$ 38.3 million, compared to $30.5 million in Q4 2023, representing a year-over-year increase of 25.7%[33] Assets and Liabilities - Cash and cash equivalents increased to$ 146.0 million in 2024 from $88.4 million in 2023[27] - Total assets decreased to$ 1,802.3 million in 2024 from $1,837.8 million in 2023[27] - Total liabilities decreased to$ 1,101.8 million in 2024 from $1,132.3 million in 2023[27] - The total debt as of December 31, 2024, was$ 870.8 million, slightly down from $877.5 million in 2023[40] - The Net Debt Leverage Ratio remained stable at 3.0x for both 2024 and 2023[40] Impairments and Expenses - The company reported an impairment of investment in affiliated companies amounting to$ 65.0 million in 2024[29] - The company recognized an impairment charge of $65.0 million on its investment in affiliated companies during the year ended December 31, 2024[33] - Interest expense decreased by 15.1% to$ 11.8 million in Q4 2024 from $13.9 million in Q4 2023[25] - Interest expense for Q4 2024 was$ 11.8 million, down from $13.9 million in Q4 2023, reflecting a decrease of approximately 15.1%[30] - The company reported depreciation and amortization expenses of$ 22.6 million for Q4 2024, slightly up from $22.1 million in Q4 2023[30] - Equity-based compensation expenses were$ 3.5 million for Q4 2024, compared to $3.4 million in Q4 2023, indicating a marginal increase[33] Strategic Initiatives - A strategic review of the Advanced Materials & Catalysts segment is underway, expected to be completed by mid-2025[12] - The company plans to continue focusing on its Advanced Materials & Catalysts segment, which includes its 50% share of the Zeolyst Joint Venture[32]