Ecovyst (ECVT) - 2023 Q4 - Annual Report

Financial Performance - Total sales for the year ended December 31, 2023, were $691.1 million, with$ 156.5 million attributable to the Zeolyst Joint Venture, representing 50% of its total sales[33]. - The Ecoservices segment generated $584.8 million in sales, accounting for 70.9% of total adjusted EBITDA of$ 259.9 million[52]. - The Advanced Materials & Catalysts segment reported sales of $106.3 million, contributing 29.1% to total adjusted EBITDA[52]. - The Regeneration and Treatment Services category within Ecoservices accounted for 52.0% of total sales, with$ 354.6 million reported[33]. - Approximately 20% of the sulfuric acid volume for the year ended December 31, 2023, was under contracts expiring at the end of 2024 or beyond, indicating potential revenue risks from contract renewals[140]. - For the year ended December 31, 2023, the top ten customers represented approximately 60% of the company's sales, with one single customer accounting for 13% or 877.5 million as of December 31, 2023, which may adversely affect its financial condition and operational flexibility[193]. - As of December 31, 2023, the assets available to fund pension obligations were approximately $61.6 million, which is about$ 4.9 million less than the measured pension benefit obligation on a GAAP basis[191]. - The company may not be able to obtain adequate insurance coverage in the future, which could lead to increased premiums and financial risks[163]. Employee and Labor Relations - As of December 31, 2023, the company had 911 employees worldwide, with approximately 44% represented by a union or employee representative body[214]. - 137 of the U.S. unionized employees are covered under collective bargaining agreements expiring on or before December 30, 2024, which may lead to labor disputes if agreements are not reached[214]. - Approximately 24% of U.S.-based executives, managers, and professionals were female, and 21% were non-white males as of December 31, 2023[98]. Compliance and Regulatory Risks - The company is subject to examination by local tax authorities, and adverse outcomes could increase effective tax rates, negatively impacting operating results and cash flows[190]. - Compliance with regulations related to conflict minerals may increase costs and affect the sourcing and pricing of materials used in products[219]. - Effective internal control over financial reporting is required, and any material weaknesses identified could negatively affect investor confidence and the market price of common stock[216][217].