AdvanSix Announces Third Quarter 2024 Financial Results
AdvanSix (ASIX) reported strong Q3 2024 financial results with sales of $398 million, up 23% year-over-year. Net Income reached $22.3 million, with Adjusted EBITDA of $53.2 million and margin of 13.4%. The company saw an 11% increase in volume, 8% higher raw material pass-through pricing, and 5% favorable market-based pricing. Cash Flow from Operations improved to $57.3 million. The company was awarded a $12 million USDA grant for granular ammonium sulfate expansion. However, the company expects an approximately $17 million unfavorable impact to pre-tax income in Q4 2024 due to maintenance issues and delayed operations at the Hopewell site.
AdvanSix (ASIX) ha riportato forti risultati finanziari nel Q3 2024, con vendite di $398 milioni, in aumento del 23% rispetto all'anno precedente. Il reddito netto ha raggiunto $22,3 milioni, con un EBITDA rettificato di $53,2 milioni e un margine del 13,4%. L'azienda ha registrato un aumento del 11% nel volume, un incremento dell'8% nei prezzi di pass-through delle materie prime e un 5% di prezzi favorevoli basati sul mercato. Il flusso di cassa dalle operazioni è migliorato a $57,3 milioni. L'azienda ha ricevuto un contributo USDA di $12 milioni per l'espansione del solfato di ammonio granulare. Tuttavia, l'azienda prevede un impatto negativo di circa $17 milioni sul reddito ante imposte nel Q4 2024 a causa di problemi di manutenzione e operazioni ritardate presso il sito di Hopewell.
AdvanSix (ASIX) reportó resultados financieros sólidos para el tercer trimestre de 2024, con ventas de $398 millones, un incremento del 23% en comparación con el año anterior. La renta neta alcanzó $22,3 millones, con un EBITDA ajustado de $53,2 millones y un margen del 13,4%. La compañía observó un aumento del 11% en el volumen, un incremento del 8% en los precios de materiales crudos y un 5% en precios favorables basados en el mercado. El flujo de efectivo de las operaciones mejoró a $57,3 millones. La empresa recibió una para la expansión de sulfato de amonio granular. Sin embargo, la empresa espera un impacto negativo de aproximadamente $17 millones en los ingresos antes de impuestos en el cuarto trimestre de 2024 debido a problemas de mantenimiento y operaciones retrasadas en el sitio de Hopewell.
AdvanSix (ASIX)는 2024년 3분기 재무 결과가 강력하다고 보고했으며, 매출은 $398 백만으로 전년 대비 23% 증가했습니다. 순이익은 $22.3 백만에 달했으며, 조정된 EBITDA는 $53.2 백만이고, 마진은 13.4%입니다. 회사는 물량이 11% 증가하고, 원자재 가격통과가 8% 상승하며, 시장 기반 가격이 5% 호조를 보였습니다. 운영으로 인한 현금 흐름은 $57.3 백만으로 개선되었습니다. 회사는 과립 황산암모늄 확장을 위한 $12 백만 USDA 보조금을 받았습니다. 그러나 회사는 Hopewell 사이트의 유지 보수 문제와 지연된 운영으로 인해 2024년 4분기 세전 소득에 약 $17 백만의 부정적인 영향을 예상하고 있습니다.
AdvanSix (ASIX) a annoncé de solides résultats financiers pour le troisième trimestre 2024, avec des ventes atteignant 398 millions $, en hausse de 23 % par rapport à l'année précédente. Le revenu net a atteint 22,3 millions $, avec un EBITDA ajusté de 53,2 millions $ et une marge de 13,4 %. L'entreprise a constaté une augmentation de 11 % du volume, une hausse de 8 % des prix des matières premières et une amélioration de 5 % des prix sur le marché. Le flux de trésorerie provenant des opérations a été amélioré à 57,3 millions $. L'entreprise a reçu une aide de 12 millions $ de l'USDA pour l'expansion du sulfate d'ammonium granulé. Cependant, l'entreprise prévoit un impact négatif d'environ 17 millions $ sur le revenu avant impôts au quatrième trimestre 2024 en raison de problèmes de maintenance et de retards d'exploitation sur le site de Hopewell.
AdvanSix (ASIX) hat starke Finanzergebnisse für das dritte Quartal 2024 gemeldet, mit einem Umsatz von 398 Millionen $, was einem Anstieg von 23 % im Vergleich zum Vorjahr entspricht. Der Nettogewinn betrug 22,3 Millionen $, mit einem bereinigten EBITDA von 53,2 Millionen $ und einer Marge von 13,4 %. Das Unternehmen verzeichnete einen Anstieg des Volumens um 11 %, einen Anstieg der Rohstoffpreisdurchreichung um 8 % und einen Anstieg der marktgerechten Preise um 5 %. Der Cashflow aus der betrieblichen Tätigkeit verbesserte sich auf 57,3 Millionen $. Das Unternehmen erhielt einen USDA-Zuschuss in Höhe von 12 Millionen $ für die Expansion von granulierter Ammoniumsulfat. Allerdings erwartet das Unternehmen einen etwa 17 Millionen $ ungünstigen Einfluss auf das Ergebnis vor Steuern im vierten Quartal 2024 aufgrund von Wartungsproblemen und verzögerten Arbeiten am Standort Hopewell.
- Sales increased 23% year-over-year to $398 million
- Net Income improved by $30.2 million to $22.3 million
- Adjusted EBITDA increased by $45.8 million to $53.2 million
- Cash Flow from Operations grew by $36.4 million to $57.3 million
- Secured $12 million USDA grant for capacity expansion
- Expected $17 million negative impact to Q4 2024 pre-tax income due to operational issues
- $10 million additional costs from fixed cost absorption and maintenance
- $7 million in lost sales projected due to delayed operations at Hopewell site
Insights
Strong quarterly performance with substantial improvements across key metrics.
The operational challenges at the Hopewell facility will impact Q4 with an expected
Strong cash flow generation with
Market conditions are notably favorable across key segments. The ammonium sulfate segment shows robust demand driven by agricultural sulfur nutrition needs, while acetone markets display constructive supply-demand dynamics. The North American nylon industry is showing modest improvement, suggesting a potential upward trend in industry spreads.
Portfolio diversification is proving effective with chemical intermediates comprising
Sales of
Earnings Per Share of
Cash Flow from Operations of
Awarded
Appointed Sidd Manjeshwar as SVP and CFO, effective October 1
Third Quarter 2024 Summary
-
Sales up approximately
23% versus prior year driven by an approximately11% increase in volume,8% higher raw material pass-through pricing, and5% favorable impact of market-based pricing -
Net Income of
, an increase of$22.3 million versus the prior year$30.2 million -
Adjusted EBITDA of
, an increase of$53.2 million versus the prior year$45.8 million -
Adjusted EBITDA Margin of
13.4% , up 1,110 bps versus the prior year -
Cash Flow from Operations of
, an increase of$57.3 million versus the prior year$36.4 million -
Capital Expenditures of
, an increase of$30.5 million versus the prior year$5.4 million -
Free Cash Flow of
, an increase of$26.8 million versus the prior year$31.1 million
“In the third quarter, AdvanSix capitalized on the strength of our competitive position to deliver robust results with the continued realization of commercial performance across our diverse product portfolio and strong operational execution,” said Erin Kane, president and CEO of AdvanSix. “The AdvanSix team drove top and bottom-line growth as well as continued cash flow improvement amid a strong ammonium sulfate fall fill program supporting higher pricing year-over-year, a constructive global acetone supply and demand environment, and modestly improving North American nylon industry conditions. We are accelerating focused growth in the most profitable areas of our business and were pleased to be awarded an approximately
Summary third quarter 2024 financial results for the Company are included below:
($ in Thousands, Except Earnings Per Share) |
3Q 2024 |
|
3Q 2023 |
|
Sales |
|
|
|
|
Net Income (Loss) |
22,266 |
|
(7,977) |
|
Diluted Earnings Per Share |
|
|
( |
|
Adjusted Diluted Earnings Per Share (1) |
|
|
( |
|
Adjusted EBITDA (1) |
53,161 |
|
7,321 |
|
Adjusted EBITDA Margin % (1) |
|
|
|
|
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
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 |
|
|
|
$ |
86,056 |
|
|
|
Caprolactam |
|
76,338 |
|
|
|
|
68,795 |
|
|
|
Ammonium Sulfate |
|
107,668 |
|
|
|
|
79,067 |
|
|
|
Chemical Intermediates |
|
120,488 |
|
|
|
|
88,989 |
|
|
|
Total |
$ |
398,187 |
|
|
|
$ |
322,907 |
|
|
|
(1) Previously reported amounts have been updated for a reclassification of certain products representing approximately |
Adjusted EBITDA of
Adjusted earnings per share of
Cash flow from operations of
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
to$135 in 2024, reflecting refined execution timing to address critical enterprise risk mitigation and growth projects including our SUSTAIN (Sustainable$140 million 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 unfavorable impact to pre-tax income in 4Q24, inclusive of$17 million related to fixed cost absorption and higher maintenance expense, and$10 million of lost sales; no impact on 3Q24 results$7 million
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
“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
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 http://investors.advansix.com. 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
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
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 |
|
330 |
|
|
|
326 |
|
|
Preferred stock, par value |
|
— |
|
|
|
— |
|
|
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 |
||||||||||||||||
(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 |
— |
|
|
|
|
Sulfuric Acid |
||||||
2018 |
|
|
|
— |
|
Ammonia |
||||||
2019 |
— |
|
|
|
|
Sulfuric Acid |
||||||
2020 |
|
|
|
|
|
Ammonia |
||||||
2021 |
|
|
— |
|
|
Sulfuric Acid |
||||||
2022 |
|
|
|
— |
|
Ammonia |
||||||
2023 |
|
|
|
— |
|
Sulfuric Acid |
||||||
2024E |
|
|
|
|
|
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 |
||||||||||||
(6) During the multi-site planned plant turnaround, additional required maintenance at our |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241031152094/en/
Media
Janeen Lawlor
(973) 526-1615
janeen.lawlor@advansix.com
Investors
Adam Kressel
(973) 526-1700
adam.kressel@advansix.com
Source: AdvanSix
FAQ
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