AdvanSix Announces First Quarter 2021 Financial Results

Rhea-AI Summary

AdvanSix (NYSE: ASIX) reported strong financial results for Q1 2021, marking a significant increase in sales and earnings. Sales rose by approximately 24% year-over-year to $376.4 million, driven by higher raw material pricing and volume. Net income reached $28.1 million, up from $8.6 million in Q1 2020. EBITDA grew to $55.1 million with a margin of 14.6%. The company also highlighted improved cash flow from operations of $57.1 million and free cash flow of $42.9 million. Additionally, AdvanSix acquired assets from Commonwealth Industrial Services, enhancing its product offerings.

Positive

• Sales increased by 24% to $376.4 million.
• Net income rose to $28.1 million, up $19.6 million year-over-year.
• EBITDA increased by 48% to $55.1 million.
• EBITDA margin improved by 510 bps to 14.6%.
• Cash flow from operations grew by $37.4 million to $57.1 million.
• Free cash flow of $42.9 million, an increase of $57.3 million.
• Successful acquisition of Commonwealth Industrial Services assets.

Negative

• None.

AdvanSix (NYSE: ASIX) today announced its financial results for the first quarter ending March 31, 2021. Overall, the Company generated significantly higher sales, earnings and cash flow in the quarter reflecting improved end market conditions and strong execution.

First Quarter 2021 Results

• Sales up approximately 24% versus prior year driven by 11% higher raw material pass-through pricing, 8% higher volume and 5% favorable impact of market-based pricing
• Net Income of $28.1 million, an increase of $19.6 million versus the prior year
• EBITDA of $55.1 million, an increase of $26.4 million versus the prior year
• EBITDA Margin of 14.6%, an increase of 510 bps versus the prior year
• Cash Flow from Operations of $57.1 million, an increase of $37.4 million versus the prior year
• Capital Expenditures of $14.2 million, a decrease of $19.9 million versus the prior year
• Free Cash Flow of $42.9 million, an increase of $57.3 million versus the prior year

“It's been a terrific start to 2021. The diversity of our product portfolio and strength of our business model and execution is reflected in the strong year-over-year results. We captured sales volume growth and pricing to achieve significant margin expansion, higher earnings and robust cash flow amid recovering demand and a tightened supply environment overall," said Erin Kane, president and CEO of AdvanSix. "We also continued to progress our core strategies. As previously announced, we closed the acquisition of certain assets of Commonwealth Industrial Services (CIS) in January to expand our offerings in sulfur nutrition and the integration and synergy realization are progressing well ahead of plan. This week we were also honored in being awarded a 2021 EcoVadis Platinum Rating in recognition of our strengthening corporate social responsibility performance and ranking us among the top 1% of all companies assessed."

Summary first quarter 2021 financial results for the Company are included below:

($ in Thousands, Except Earnings Per Share)		1Q 2021		1Q 2020
Sales		$376,383		$302,713
Net Income		28,131		8,576
Earnings Per Share (Diluted)		$0.98		$0.31
EBITDA

FAQ

What were AdvanSix's earnings for Q1 2021?

AdvanSix reported a net income of $28.1 million for Q1 2021.

How did AdvanSix's sales perform in Q1 2021?

Sales for Q1 2021 increased by approximately 24% to $376.4 million compared to the prior year.

What is the EBITDA for AdvanSix in Q1 2021?

The EBITDA for AdvanSix in Q1 2021 was $55.1 million.

What was the free cash flow for AdvanSix in Q1 2021?

AdvanSix's free cash flow for Q1 2021 was $42.9 million.

What factors contributed to AdvanSix's revenue increase in Q1 2021?

The revenue increase was driven by higher raw material prices, increased sales volume, and favorable market-based pricing.