PARSIPPANY, N.J.--(BUSINESS WIRE)--
AdvanSix (NYSE: ASIX), a diversified chemistry company, today announced its financial results for the third quarter ending September 30, 2024. Overall, the Company delivered strong sales, earnings and cash flow performance while continuing to invest for long-term sustainable growth.
Third Quarter 2024 Summary
- Sales up approximately 23% versus prior year driven by an approximately 11% increase in volume, 8% higher raw material pass-through pricing, and 5% favorable impact of market-based pricing
- Net Income of $22.3 million, an increase of $30.2 million versus the prior year
- Adjusted EBITDA of $53.2 million, an increase of $45.8 million versus the prior year
- Adjusted EBITDA Margin of 13.4%, up 1,110 bps versus the prior year
- Cash Flow from Operations of $57.3 million, an increase of $36.4 million versus the prior year
- Capital Expenditures of $30.5 million, an increase of $5.4 million versus the prior year
- Free Cash Flow of $26.8 million, an increase of $31.1 million versus the prior year
“In the third quarter, AdvanSix capitalized on the strength of our competitive position to deliver robust results with the continued realization of commercial performance across our diverse product portfolio and strong operational execution,” said Erin Kane, president and CEO of AdvanSix. “The AdvanSix team drove top and bottom-line growth as well as continued cash flow improvement amid a strong ammonium sulfate fall fill program supporting higher pricing year-over-year, a constructive global acetone supply and demand environment, and modestly improving North American nylon industry conditions. We are accelerating focused growth in the most profitable areas of our business and were pleased to be awarded an approximately $12 million grant from the U.S. Department of Agriculture to increase our production capacity of premium grade products, reinforcing a strong return profile for our SUSTAIN (Sustainable U.S. Sulfate to Accelerate Increased Nutrition) program.”
Summary third quarter 2024 financial results for the Company are included below:
($ in Thousands, Except Earnings Per Share) |
3Q 2024 |
|
3Q 2023 |
|
Sales |
$398,187 |
|
$322,907 |
|
Net Income (Loss) |
22,266 |
|
(7,977) |
|
Diluted Earnings Per Share |
$0.82 |
|
($0.29) |
|
Adjusted Diluted Earnings Per Share (1) |
$0.88 |
|
($0.36) |
|
Adjusted EBITDA (1) |
53,161 |
|
7,321 |
|
Adjusted EBITDA Margin % (1) |
13.4% |
|
2.3% |
|
Cash Flow from Operations |
57,250 |
|
20,802 |
|
Free Cash Flow (1)(2) |
26,760 |
|
(4,329) |
|
(1) See “Non-GAAP Measures” included in this press release for non-GAAP reconciliations |
||||
(2) Net cash provided by operating activities less capital expenditures |
||||
Sales of $398 million in the quarter increased approximately 23% versus the prior year. Sales volume increased approximately 11% primarily driven by higher sales of ammonium sulfate supported by sulfur nutrition demand. Raw material pass-through pricing was favorable by 8% as a result of a net cost increase in benzene and propylene (inputs to cumene which is a key feedstock to our products). Market-based pricing was favorable by 5% including continued strength in acetone, as well as ammonium sulfate as growers seeking to maximize crop yields continue to recognize the benefits of sulfur nutrition.
Sales by product line and approximate percentage of total sales are included below:
($ in Thousands) |
3Q 2024 |
|
3Q 2023 (1) |
|||||||
|
Sales |
|
% of Total |
|
Sales |
|
% of Total |
|||
Nylon |
$ |
93,693 |
|
24% |
|
$ |
86,056 |
|
27% |
|
Caprolactam |
|
76,338 |
|
19% |
|
|
68,795 |
|
21% |
|
Ammonium Sulfate |
|
107,668 |
|
27% |
|
|
79,067 |
|
24% |
|
Chemical Intermediates |
|
120,488 |
|
30% |
|
|
88,989 |
|
28% |
|
Total |
$ |
398,187 |
|
100% |
|
$ |
322,907 |
|
100% |
|
(1) Previously reported amounts have been updated for a reclassification of certain products representing approximately $5.5 million of sales in 3Q 2023 between Ammonium Sulfate (decreased) and Chemical Intermediates (increased). Total sales were not impacted. |
||||||||||
Adjusted EBITDA of $53.2 million in the quarter increased $45.8 million versus the prior year primarily driven by favorable pricing, net of raw material costs, higher sales volume, and the timing of planned plant turnarounds.
Adjusted earnings per share of $0.88 increased $1.24 versus the prior year driven primarily by the factors discussed above.
Cash flow from operations of $57.3 million in the quarter increased $36.4 million versus the prior year primarily driven by higher net income. Capital expenditures of $30.5 million in the quarter increased $5.4 million versus the prior year primarily reflecting planned increased spend on maintenance and enterprise programs.
Outlook
- Ammonium sulfate order book sold through 4Q24 amid continued strong sulfur nutrition demand
- Expect balanced to tight global acetone supply and demand conditions
- Expect North American nylon industry spreads to modestly improve amid stable end market demand
- Expect Capital Expenditures to now be $135 to $140 million in 2024, reflecting refined execution timing to address critical enterprise risk mitigation and growth projects including our SUSTAIN (Sustainable U.S. Sulfate to Accelerate Increased Nutrition) program
- As a result of additional required maintenance and a delayed ramp to full operating rates at our Hopewell site following our planned plant turnaround, we expect an incremental approximately $17 million unfavorable impact to pre-tax income in 4Q24, inclusive of $10 million related to fixed cost absorption and higher maintenance expense, and $7 million of lost sales; no impact on 3Q24 results
Manufacturing plant turnarounds are a critical enabler for driving operational excellence, safety and compliance across the AdvanSix enterprise, and key to achieving and sustaining disproportionately higher operating rates given our competitive cost advantage. This year’s fourth quarter planned turnaround was comprehensive in scope, designed to encompass maintenance and reliability work at our three major sites. The mechanical portion of the turnaround was safely and well executed across all sites, however we experienced a delayed ramp to full operating rates in our Hopewell facility given a challenge associated with our Ammonia plant re-start.
“2024 has truly been a year of contrasts. On the positive side, we have consistently demonstrated our agility and focus by deploying the right strategies and actions to achieve commercial success while advancing targeted growth initiatives. On the opportunity side, while we have proven ability to navigate and recover from operational difficulties, our manufacturing execution this year has not met our expectations. Operational excellence is a key enabler to our overall performance, with meaningful performance upside for us to capture, and we take all learnings for sustained continuous improvement with rigor and discipline. Despite the unfavorable impact of the extended turnaround in the fourth quarter, we are pleased to have returned to our targeted utilization rates and our outlook for the remainder of the year and 2025 continues to be supported by our diverse product portfolio, advantaged business model and favorable industry dynamics. We remain confident in the growth prospects for AdvanSix, and are committed to delivering sustainable long-term value to our shareholders,” concluded Kane.
Dividend
The Company's Board of Directors declared a quarterly cash dividend of $0.16 per share on the Company's common stock. The dividend is payable on November 26, 2024 to stockholders of record as of the close of business on November 12, 2024.
Conference Call Information
AdvanSix will discuss its results during its investor conference call today starting at 9:00 a.m. ET. To participate on the conference call, dial (844) 855-9494 (domestic) or (412) 858-4602 (international) approximately 10 minutes before the 9:00 a.m. ET start, and tell the operator that you are dialing in for AdvanSix’s third quarter 2024 earnings call. The live webcast of the investor call as well as related presentation materials can be accessed at . Investors can hear a replay of the conference call from 12 noon ET on November 1 until 12 noon ET on November 8 by dialing (877) 344-7529 (domestic) or (412) 317-0088 (international). The access code is 2537780.
About AdvanSix
AdvanSix is a diversified chemistry company that produces essential materials for our customers in a wide variety of end markets and applications that touch people’s lives. Our integrated value chain of our five U.S.-based manufacturing facilities plays a critical role in global supply chains and enables us to innovate and deliver essential products for our customers across building and construction, fertilizers, agrochemicals, plastics, solvents, packaging, paints, coatings, adhesives, electronics and other end markets. Guided by our core values of Safety, Integrity, Accountability and Respect, AdvanSix strives to deliver best-in-class customer experiences and differentiated products in the industries of nylon solutions, plant nutrients, and chemical intermediates. More information on AdvanSix can be found at .
Forward Looking Statements
This release contains certain statements that may be deemed “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, that address activities, events or developments that our management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements may be identified by words such as "expect," "anticipate," "estimate," “outlook,” "project," "strategy," "intend," "plan," "target," "goal," "may," "will," "should" and "believe" and other variations or similar terminology and expressions. Although we believe forward-looking statements are based upon reasonable assumptions, such statements involve known and unknown risks, uncertainties and other factors, many of which are beyond our control and difficult to predict, which may cause the actual results or performance of the Company to be materially different from any future results or performance expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to: general economic and financial conditions in the U.S. and globally; the potential effects of inflationary pressures, labor market shortages and supply chain issues; instability or volatility in financial markets or other unfavorable economic or business conditions caused by geopolitical concerns, including as a result of political and policy uncertainties with the approaching U.S. Presidential election, and the conflict between Russia and Ukraine, the conflict in Israel and Gaza, and the possible expansion of such conflicts; the effect of any of the foregoing on our customers’ demand for our products and our suppliers’ ability to manufacture and deliver our raw materials, including implications of reduced refinery utilization in the U.S.; our ability to sell and provide our goods and services; the ability of our customers to pay for our products; any closures of our and our customers’ offices and facilities; risks associated with increased phishing, compromised business emails and other cybersecurity attacks, data privacy incidents and disruptions to our technology infrastructure; risks associated with operating with a reduced workforce; risks associated with our indebtedness including compliance with financial and restrictive covenants, and our ability to access capital on reasonable terms, at a reasonable cost, or at all, due to economic conditions or otherwise; the impact of scheduled turnarounds and significant unplanned downtime and interruptions of production or logistics operations as a result of mechanical issues or other unanticipated events such as fires, severe weather conditions, natural disasters, pandemics and geopolitical conflicts and related events; price fluctuations, cost increases and supply of raw materials; our operations and growth projects requiring substantial capital; growth rates and cyclicality of the industries we serve including global changes in supply and demand; failure to develop and commercialize new products or technologies; loss of significant customer relationships; adverse trade and tax policies; extensive environmental, health and safety laws that apply to our operations; hazards associated with chemical manufacturing, storage and transportation; litigation associated with chemical manufacturing and our business operations generally; inability to acquire and integrate businesses, assets, products or technologies; protection of our intellectual property and proprietary information; prolonged work stoppages as a result of labor difficulties or otherwise; failure to maintain effective internal controls; our ability to declare and pay quarterly cash dividends and the amounts and timing of any future dividends; our ability to repurchase our common stock and the amount and timing of any future repurchases; disruptions in supply chain, transportation and logistics; potential for uncertainty regarding qualification for tax treatment of our spin-off; fluctuations in our stock price; and changes in laws or regulations applicable to our business. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Such forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by such forward-looking statements. We identify the principal risks and uncertainties that affect our performance in our filings with the Securities and Exchange Commission (SEC), including the risk factors in Part 1, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023, as updated in subsequent reports filed with the SEC.
Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures intended to supplement, not to act as substitutes for, comparable GAAP measures. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided in this press release. Investors are urged to consider carefully the comparable GAAP measures and the reconciliations to those measures provided. Non-GAAP measures in this press release may be calculated in a way that is not comparable to similarly-titled measures reported by other companies.
AdvanSix Inc. |
||||||||
Condensed Consolidated Balance Sheets |
||||||||
(Unaudited) |
||||||||
(Dollars in thousands, except share and per share amounts) |
||||||||
|
September 30, 2024 |
|
December 31, 2023 |
|||||
ASSETS |
|
|
|
|||||
Current assets: |
|
|
|
|||||
Cash and cash equivalents |
$ |
17,298 |
|
|
$ |
29,768 |
|
|
Accounts and other receivables – net |
|
149,058 |
|
|
|
165,393 |
|
|
Inventories – net |
|
213,434 |
|
|
|
211,831 |
|
|
Taxes receivable |
|
375 |
|
|
|
1,434 |
|
|
Other current assets |
|
15,608 |
|
|
|
11,378 |
|
|
Total current assets |
|
395,773 |
|
|
|
419,804 |
|
|
|
|
|
|
|||||
Property, plant and equipment – net |
|
892,574 |
|
|
|
852,642 |
|
|
Operating lease right-of-use assets |
|
90,740 |
|
|
|
95,805 |
|
|
Goodwill |
|
56,192 |
|
|
|
56,192 |
|
|
Intangible assets |
|
43,906 |
|
|
|
46,193 |
|
|
Other assets |
|
31,050 |
|
|
|
25,384 |
|
|
Total assets |
$ |
1,510,235 |
|
|
$ |
1,496,020 |
|
|
|
|
|
|
|||||
LIABILITIES |
|
|
|
|||||
Current liabilities: |
|
|
|
|||||
Accounts payable |
$ |
207,272 |
|
|
$ |
259,068 |
|
|
Accrued liabilities |
|
55,783 |
|
|
|
44,086 |
|
|
Income taxes payable |
|
435 |
|
|
|
8,033 |
|
|
Operating lease liabilities – short-term |
|
30,135 |
|
|
|
32,053 |
|
|
Deferred income and customer advances |
|
1,517 |
|
|
|
15,678 |
|
|
Total current liabilities |
|
295,142 |
|
|
|
358,918 |
|
|
|
|
|
|
|||||
Deferred income taxes |
|
154,690 |
|
|
|
151,059 |
|
|
Operating lease liabilities – long-term |
|
60,793 |
|
|
|
63,961 |
|
|
Line of credit – long-term |
|
215,000 |
|
|
|
170,000 |
|
|
Postretirement benefit obligations |
|
7,048 |
|
|
|
3,660 |
|
|
Other liabilities |
|
11,154 |
|
|
|
9,185 |
|
|
Total liabilities |
|
743,827 |
|
|
|
756,783 |
|
|
|
|
|
|
|||||
STOCKHOLDERS' EQUITY |
|
|
|
|||||
Common stock, par value $0.01; 200,000,000 shares authorized; 32,982,868 shares issued and 26,730,739 outstanding at September 30, 2024; 32,598,946 shares issued and 26,750,471 outstanding at December 31, 2023 |
|
330 |
|
|
|
326 |
|
|
Preferred stock, par value $0.01; 50,000,000 shares authorized; 0 shares issued and outstanding at September 30, 2024 and December 31, 2023 |
|
— |
|
|
|
— |
|
|
Treasury stock at par (6,252,129 shares at September 30, 2024; 5,848,475 shares at December 31, 2023) |
|
(63 |
) |
|
|
(58 |
) |
|
Additional paid-in capital |
|
134,735 |
|
|
|
138,046 |
|
|
Retained earnings |
|
635,609 |
|
|
|
605,067 |
|
|
Accumulated other comprehensive loss |
|
(4,203 |
) |
|
|
(4,144 |
) |
|
Total stockholders' equity |
|
766,408 |
|
|
|
739,237 |
|
|
Total liabilities and stockholders' equity |
$ |
1,510,235 |
|
|
$ |
1,496,020 |
|
|
AdvanSix Inc. |
||||||||||||||
Condensed Consolidated Statements of Operations |
||||||||||||||
(Unaudited) |
||||||||||||||
(Dollars in thousands, except share and per share amounts) |
||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||
Sales |
$ |
398,187 |
|
$ |
322,907 |
|
|
$ |
1,188,495 |
|
$ |
1,151,391 |
|
|
|
|
|
|
|
|
|
|
|||||||
Costs, expenses and other: |
|
|
|
|
|
|
|
|||||||
Costs of goods sold |
|
340,885 |
|
|
314,785 |
|
|
|
1,046,860 |
|
|
1,004,844 |
|
|
Selling, general and administrative expenses |
|
24,265 |
|
|
21,585 |
|
|
|
72,290 |
|
|
70,711 |
|
|
Interest expense, net |
|
2,924 |
|
|
2,075 |
|
|
|
9,137 |
|
|
5,296 |
|
|
Other non-operating (income) expense, net |
|
368 |
|
|
(5,485 |
) |
|
|
1,808 |
|
|
(6,918 |
) |
|
Total costs, expenses and other |
|
368,442 |
|
|
332,960 |
|
|
|
1,130,095 |
|
|
1,073,933 |
|
|
|
|
|
|
|
|
|
|
|||||||
Income (loss) before taxes |
|
29,745 |
|
|
(10,053 |
) |
|
|
58,400 |
|
|
77,458 |
|
|
Income tax expense (benefit) |
|
7,479 |
|
|
(2,076 |
) |
|
|
14,603 |
|
|
17,753 |
|
|
Net income (loss) |
$ |
22,266 |
|
$ |
(7,977 |
) |
|
$ |
43,797 |
|
$ |
59,705 |
|
|
|
|
|
|
|
|
|
|
|||||||
Earnings per common share |
|
|
|
|
|
|
|
|||||||
Basic |
$ |
0.83 |
|
$ |
(0.29 |
) |
|
$ |
1.63 |
|
$ |
2.18 |
|
|
Diluted |
$ |
0.82 |
|
$ |
(0.29 |
) |
|
$ |
1.61 |
|
$ |
2.12 |
|
|
|
|
|
|
|
|
|
|
|||||||
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|||||||
Basic |
|
26,790,752 |
|
|
27,209,521 |
|
|
|
26,836,114 |
|
|
27,433,851 |
|
|
Diluted |
|
27,204,714 |
|
|
27,209,521 |
|
|
|
27,209,680 |
|
|
28,193,721 |
|
|
AdvanSix Inc. |
||||||||||||||||
Condensed Consolidated Statements of Cash Flows |
||||||||||||||||
(Unaudited) |
||||||||||||||||
(Dollars in thousands) |
||||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|||||||||
Net income (loss) |
$ |
22,266 |
|
|
$ |
(7,977 |
) |
|
$ |
43,797 |
|
|
$ |
59,705 |
|
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
|
|||||||||
Depreciation and amortization |
|
18,933 |
|
|
|
18,379 |
|
|
|
57,197 |
|
|
|
54,337 |
|
|
Loss on disposal of assets |
|
154 |
|
|
|
371 |
|
|
|
415 |
|
|
|
939 |
|
|
Deferred income taxes |
|
2,887 |
|
|
|
(2,825 |
) |
|
|
3,638 |
|
|
|
1,069 |
|
|
Stock-based compensation |
|
1,559 |
|
|
|
1,391 |
|
|
|
5,963 |
|
|
|
5,840 |
|
|
Amortization of deferred financing fees |
|
155 |
|
|
|
155 |
|
|
|
464 |
|
|
|
464 |
|
|
Operational asset adjustments |
|
— |
|
|
|
(4,472 |
) |
|
|
1,200 |
|
|
|
(4,472 |
) |
|
Changes in assets and liabilities, net of business acquisitions: |
|
|
|
|
|
|
|
|||||||||
Accounts and other receivables |
|
21,073 |
|
|
|
20,062 |
|
|
|
15,069 |
|
|
|
42,185 |
|
|
Inventories |
|
(37,607 |
) |
|
|
(3,598 |
) |
|
|
(1,603 |
) |
|
|
(14,082 |
) |
|
Taxes receivable |
|
(196 |
) |
|
|
(56 |
) |
|
|
1,059 |
|
|
|
8,273 |
|
|
Accounts payable |
|
17,994 |
|
|
|
(4,245 |
) |
|
|
(43,687 |
) |
|
|
(50,123 |
) |
|
Income taxes payable |
|
(572 |
) |
|
|
3,474 |
|
|
|
(7,598 |
) |
|
|
2,136 |
|
|
Accrued liabilities |
|
4,839 |
|
|
|
(2,043 |
) |
|
|
10,988 |
|
|
|
(7,787 |
) |
|
Deferred income and customer advances |
|
369 |
|
|
|
82 |
|
|
|
(14,161 |
) |
|
|
(32,015 |
) |
|
Other assets and liabilities |
|
5,396 |
|
|
|
2,104 |
|
|
|
(1,493 |
) |
|
|
(9,088 |
) |
|
Net cash provided by operating activities |
|
57,250 |
|
|
|
20,802 |
|
|
|
71,248 |
|
|
|
57,381 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Cash flows from investing activities: |
|
|
|
|
|
|
|
|||||||||
Expenditures for property, plant and equipment |
|
(30,490 |
) |
|
|
(25,131 |
) |
|
|
(99,373 |
) |
|
|
(69,025 |
) |
|
Other investing activities |
|
(2,317 |
) |
|
|
(370 |
) |
|
|
(6,053 |
) |
|
|
(2,404 |
) |
|
Net cash used for investing activities |
|
(32,807 |
) |
|
|
(25,501 |
) |
|
|
(105,426 |
) |
|
|
(71,429 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Cash flows from financing activities: |
|
|
|
|
|
|
|
|||||||||
Borrowings from line of credit |
|
54,000 |
|
|
|
140,500 |
|
|
|
311,500 |
|
|
|
371,000 |
|
|
Payments of line of credit |
|
(69,000 |
) |
|
|
(110,500 |
) |
|
|
(266,500 |
) |
|
|
(316,000 |
) |
|
Principal payments of finance leases |
|
(260 |
) |
|
|
(242 |
) |
|
|
(762 |
) |
|
|
(698 |
) |
|
Dividend payments |
|
(4,276 |
) |
|
|
(4,350 |
) |
|
|
(12,858 |
) |
|
|
(12,354 |
) |
|
Purchase of treasury stock |
|
(42 |
) |
|
|
(9,266 |
) |
|
|
(10,427 |
) |
|
|
(37,651 |
) |
|
Issuance of common stock |
|
328 |
|
|
|
131 |
|
|
|
755 |
|
|
|
876 |
|
|
Net cash provided by (used for) financing activities |
|
(19,250 |
) |
|
|
16,273 |
|
|
|
21,708 |
|
|
|
5,173 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Net change in cash and cash equivalents |
|
5,193 |
|
|
|
11,574 |
|
|
|
(12,470 |
) |
|
|
(8,875 |
) |
|
Cash and cash equivalents at beginning of period |
|
12,105 |
|
|
|
10,536 |
|
|
|
29,768 |
|
|
|
30,985 |
|
|
Cash and cash equivalents at the end of period |
$ |
17,298 |
|
|
$ |
22,110 |
|
|
$ |
17,298 |
|
|
$ |
22,110 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Supplemental non-cash investing activities: |
|
|
|
|
|
|
|
|||||||||
Capital expenditures included in accounts payable |
|
|
|
|
$ |
15,018 |
|
|
$ |
21,188 |
|
|||||
AdvanSix Inc. |
||||||||||||||||
Non-GAAP Measures |
||||||||||||||||
(Dollars in thousands, except share and per share amounts) |
||||||||||||||||
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow |
||||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
Net cash provided by operating activities |
$ |
57,250 |
|
|
$ |
20,802 |
|
|
$ |
71,248 |
|
|
$ |
57,381 |
|
|
Expenditures for property, plant and equipment |
|
(30,490 |
) |
|
|
(25,131 |
) |
|
|
(99,373 |
) |
|
|
(69,025 |
) |
|
Free cash flow (1) |
$ |
26,760 |
|
|
$ |
(4,329 |
) |
|
$ |
(28,125 |
) |
|
$ |
(11,644 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
(1) Free cash flow is a non-GAAP measure defined as Net cash provided by operating activities less Expenditures for property, plant and equipment |
||||||||||||||||
The Company believes that this metric is useful to investors and management as a measure to evaluate our ability to generate cash flow from business operations and the impact that this cash flow has on our liquidity. |
||||||||||||||||
Reconciliation of Net Income to Adjusted EBITDA and Earnings Per Share to Adjusted Earnings Per Share |
||||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
Net income (loss) |
$ |
22,266 |
|
|
$ |
(7,977 |
) |
|
$ |
43,797 |
|
|
$ |
59,705 |
|
|
Non-cash stock-based compensation |
|
1,559 |
|
|
|
1,391 |
|
|
|
5,963 |
|
|
|
5,840 |
|
|
Non-recurring, unusual or extraordinary (income) expense (2) |
|
— |
|
|
|
(4,472 |
) |
|
|
1,200 |
|
|
|
(4,472 |
) |
|
Non-cash amortization from acquisitions |
|
531 |
|
|
|
532 |
|
|
|
1,595 |
|
|
|
1,596 |
|
|
Non-recurring M&A costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Income tax expense (benefit) relating to reconciling items |
|
(367 |
) |
|
|
776 |
|
|
|
(1,594 |
) |
|
|
(157 |
) |
|
Adjusted Net income (loss) (non-GAAP) |
|
23,989 |
|
|
|
(9,750 |
) |
|
|
50,961 |
|
|
|
62,512 |
|
|
Interest expense, net |
|
2,924 |
|
|
|
2,075 |
|
|
|
9,137 |
|
|
|
5,296 |
|
|
Income tax expense (benefit) - Adjusted |
|
7,846 |
|
|
|
(2,852 |
) |
|
|
16,197 |
|
|
|
17,911 |
|
|
Depreciation and amortization - Adjusted |
|
18,402 |
|
|
|
17,848 |
|
|
|
55,602 |
|
|
|
52,741 |
|
|
Adjusted EBITDA (non-GAAP) |
$ |
53,161 |
|
|
$ |
7,321 |
|
|
$ |
131,897 |
|
|
$ |
138,460 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Sales |
$ |
398,187 |
|
|
$ |
322,907 |
|
|
$ |
1,188,495 |
|
|
$ |
1,151,391 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Adjusted EBITDA Margin (non-GAAP) (3) |
|
13.4 |
% |
|
|
2.3 |
% |
|
|
11.1 |
% |
|
|
12.0 |
% |
|
|
|
|
|
|
|
|
|
|||||||||
(2) 2024 includes a pre-tax loss of approximately $1.2 million from the reduction of the Company’s anticipated receivable related to the gain on the termination fee recorded upon the exit from the Oben Holding Group S.A. alliance during the third quarter of 2023. During 2023, there were several transactions including the exit from the Oben Holding Group S.A. alliance, licensee exit of legacy technology and exit of certain low-margin oximes products that resulted in a $4.5 million net pre-tax loss. |
||||||||||||||||
(3) Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by Sales |
||||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||
Net income (loss) |
$ |
22,266 |
|
$ |
(7,977 |
) |
|
$ |
43,797 |
|
$ |
59,705 |
|
Adjusted Net income (loss) (non-GAAP) |
|
23,989 |
|
|
(9,750 |
) |
|
|
50,961 |
|
|
62,512 |
|
|
|
|
|
|
|
|
|
||||||
Weighted-average number of common shares outstanding - basic |
|
26,790,752 |
|
|
27,209,521 |
|
|
|
26,836,114 |
|
|
27,433,851 |
|
Dilutive effect of equity awards and other stock-based holdings |
|
413,962 |
|
|
— |
|
|
|
373,566 |
|
|
759,870 |
|
Weighted-average number of common shares outstanding - diluted |
|
27,204,714 |
|
|
27,209,521 |
|
|
|
27,209,680 |
|
|
28,193,721 |
|
|
|
|
|
|
|
|
|
||||||
EPS - Basic |
$ |
0.83 |
|
$ |
(0.29 |
) |
|
$ |
1.63 |
|
$ |
2.18 |
|
EPS - Diluted |
$ |
0.82 |
|
$ |
(0.29 |
) |
|
$ |
1.61 |
|
$ |
2.12 |
|
Adjusted EPS - Basic (non-GAAP) |
$ |
0.90 |
|
$ |
(0.36 |
) |
|
$ |
1.90 |
|
$ |
2.28 |
|
Adjusted EPS - Diluted (non-GAAP) |
$ |
0.88 |
|
$ |
(0.36 |
) |
|
$ |
1.87 |
|
$ |
2.22 |
|
The Company believes the non-GAAP financial measures presented in this release provide meaningful supplemental information as they are used by the Company’s management to evaluate the Company’s operating performance, enhance a reader’s understanding of the financial performance of the Company, and facilitate a better comparison among fiscal periods and performance relative to its competitors, as these non-GAAP measures exclude items that are not considered core to the Company’s operations. |
|||||||||||||
AdvanSix Inc. |
||||||||||||
Appendix |
||||||||||||
(Pre-tax income impact, Dollars in millions) |
||||||||||||
|
||||||||||||
Planned Plant Turnaround Schedule (4) |
||||||||||||
|
1Q |
2Q |
3Q |
4Q |
FY |
Primary Unit Operation |
||||||
2017 |
— |
~$10 |
~$4 |
~$20 |
~$34 |
Sulfuric Acid |
||||||
2018 |
~$2 |
~$10 |
~$30 |
— |
~$42 |
Ammonia |
||||||
2019 |
— |
~$5 |
~$5 |
~$25 |
~$35 |
Sulfuric Acid |
||||||
2020 |
~$2 |
~$7 |
~$20 |
~$2 |
~$31 |
Ammonia |
||||||
2021 |
~$3 |
~$8 |
— |
~$18 |
~$29 |
Sulfuric Acid |
||||||
2022 |
~$1 |
~$5 |
~$44(5) |
— |
~$50 |
Ammonia |
||||||
2023 |
~$2 |
~$1 |
~$27 |
— |
~$30 |
Sulfuric Acid |
||||||
2024E |
~$5 |
~$3 |
~$3 |
~$47(6) |
~$58 |
Ammonia |
||||||
(4) Primarily reflects the impact of fixed cost absorption, maintenance expense, and the purchase of feedstocks which are normally manufactured by the Company. |
||||||||||||
(5) During the multi-site planned plant turnaround, additional required maintenance at our Frankford phenol plant contributed to reduced production across our integrated value chain and a delayed ramp to full operating rates at our Hopewell and Chesterfield sites, resulting in an incremental $15 million unfavorable impact to pre-tax income inclusive of fixed cost absorption, higher maintenance expense and lost sales. |
||||||||||||
(6) During the multi-site planned plant turnaround, additional required maintenance at our Hopewell plant contributed to reduced production across our integrated value chain and a delayed ramp to full operating rates, resulting in an incremental approximately $17 million unfavorable impact to pre-tax income inclusive of fixed cost absorption, higher maintenance expense, and lost sales |
||||||||||||
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