4Q23 Sales of $382 million, down 5% versus prior year

4Q23 Earnings Per Share of ($0.19); Adjusted Earnings Per Share of ($0.10)

4Q23 Cash Flow from Operations of $60 million

Returned $63 million of cash to shareholders through repurchases and dividends in 2023

AdvanSix (NYSE: ASIX) today announced its financial results for the fourth quarter and full year ending December 31, 2023. The following results reflect our navigation of a challenging end market environment while maintaining focus on long-term priorities including portfolio simplification in the year and continued investments in support of improved through-cycle profitability.

Full Year 2023 Summary

  • Sales down 21% versus prior year driven by 17% unfavorable impact of market-based pricing and 5% lower raw material pass-through pricing, partially offset by 1% contribution from acquisitions and flat volume
  • Net Income of $54.6 million, a decrease of $117.3 million versus the prior year
  • Adjusted EBITDA of $153.6 million, a decrease of $154.9 million versus the prior year
  • Cash Flow from Operations of $117.6 million, a decrease of $156.1 million versus the prior year
  • Capital Expenditures of $107.4 million, an increase of $17.9 million versus the prior year
  • Free Cash Flow of $10.2 million, a decrease of $174.0 million versus the prior year
  • Repurchased 1,317,402 shares for approximately $46.2 million in 2023

Summary full year 2023 financial results for the Company are included below:

($ in Thousands, Except Earnings Per Share)

FY 2023

 

FY 2022

Sales

$1,533,599

 

$1,945,640

Net Income

54,623

 

171,886

Diluted Earnings Per Share

$1.95

 

$5.92

Adjusted Diluted Earnings Per Share (1)

$2.14

 

$6.28

Adjusted EBITDA (1)

153,559

 

308,481

Adjusted EBITDA Margin % (1)

10.0%

 

15.9%

Cash Flow from Operations

117,550

 

273,601

Free Cash Flow (1)(2)

10,173

 

184,152

(1) See “Non-GAAP Measures” included in this press release for non-GAAP reconciliations

(2) Net cash provided by operating activities less capital expenditures

“I'm proud of the team and our continued commitment to driving improved through-cycle profitability. Our healthy balance sheet helped to support our performance through challenging market conditions, particularly in Nylon Solutions, while maintaining organic investments and return of cash to our shareholders,” said Erin Kane, president and CEO of AdvanSix. “Core to our long-term strategy is accelerating growth in the most profitable areas of our portfolio, continuous improvement to strengthen the underlying earnings power of the business, and sustaining our cost-advantaged business model."

Fourth Quarter 2023 Summary

  • Sales down 5% versus prior year driven by 22% unfavorable impact of market-based pricing, partially offset by a 16% increase in volume and 1% higher raw materials pass-through pricing.
  • Net Loss of ($5.1) million, a decrease of $38.7 million versus the prior year
  • Adjusted EBITDA of $15.1 million, a decrease of $51.5 million versus the prior year
  • Cash Flow from Operations of $60.2 million, a decrease of $9.4 million versus the prior year
  • Capital Expenditures of $38.4 million, an increase of $9.9 million versus the prior year
  • Free Cash Flow of $21.8 million, a decrease of $19.4 million versus the prior year
  • Repurchased 306,527 shares for approximately $8.5 million in 4Q23

Summary fourth quarter 2023 financial results for the Company are included below:

($ in Thousands, Except Earnings Per Share)

4Q 2023

 

4Q 2022

Sales

$382,208

 

$404,062

Net Income (Loss)

(5,082)

 

33,625

Diluted Earnings Per Share

($0.19)

 

$1.18

Adjusted Diluted Earnings Per Share (1)

($0.10)

 

$1.27

Adjusted EBITDA (1)

15,099

 

66,580

Adjusted EBITDA Margin % (1)

4.0%

 

16.5%

Cash Flow from Operations

60,169

 

69,614

Free Cash Flow (1)(2)

21,817

 

41,175

(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 $382 million in the quarter decreased approximately 5% versus the prior year. Market-based pricing was unfavorable by 22% compared to the prior year primarily reflecting reduced ammonium sulfate pricing amid lower raw material input costs and a more stable global nitrogen supply environment, as well as lower nylon pricing due to unfavorable supply and demand conditions. Sales volume increased approximately 16% primarily driven by higher export shipments in both Ammonium Sulfate and Nylon. Raw material pass-through pricing was favorable by 1% as a result of a net cost increase in benzene and propylene (inputs to cumene which is a key feedstock to our products).

Sales by product line and approximate percentage of total sales are included below:

($ in Thousands)

FY 2023

 

FY 2022

 

Sales

 

% of Total

 

Sales

 

% of Total

Nylon

$

356,632

 

23%

 

$

485,241

 

25%

Caprolactam

 

298,375

 

19%

 

 

319,863

 

16%

Ammonium Sulfate

 

440,915

 

29%

 

 

629,021

 

33%

Chemical Intermediates

 

437,677

 

29%

 

 

511,515

 

26%

 

$

1,533,599

 

100%

 

$

1,945,640

 

100%

($ in Thousands)

4Q 2023

 

4Q 2022

 

Sales

 

% of Total

 

Sales

 

% of Total

Nylon

$

78,251

 

20%

 

$

93,510

 

23%

Caprolactam

 

82,508

 

22%

 

 

71,871

 

18%

Ammonium Sulfate

 

108,691

 

28%

 

 

136,734

 

34%

Chemical Intermediates

 

112,759

 

30%

 

 

101,947

 

25%

 

$

382,209

 

100%

 

$

404,062

 

100%

Adjusted EBITDA of $15.1 million in the quarter decreased $51.5 million versus the prior year primarily due to unfavorable market-based pricing, net of raw material costs, partially offset by the net impact of higher sales volume and changes in sales mix including higher export volume.

Adjusted earnings per share of ($0.10) decreased $1.37 versus the prior year driven primarily by the factors discussed above.

Cash flow from operations of $60.2 million in the quarter decreased $9.4 million versus the prior year primarily due to lower net income, partially offset by the favorable impact of changes in working capital. Capital expenditures of $38.4 million in the quarter increased $9.9 million versus the prior year primarily reflecting increased spend on enterprise programs and other maintenance projects.

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 March 18, 2024 to stockholders of record as of the close of business on March 4, 2024.

Outlook

  • Expect nylon industry spreads to remain stabilized near current levels amid weak demand; Anticipate higher Nylon Solutions exports in first half of 2024 year-over-year
  • Anticipate strong ammonium sulfate seasonal demand supported by continued favorable underlying agriculture industry fundamentals; Expect first half 2024 year-over-year pricing declines amid lower nitrogen pricing environment
  • Expect balanced to tight global acetone supply and demand conditions
  • Expect Capital Expenditures of $140 to $150 million in 2024, reflecting increased spend to address critical enterprise risk mitigation and growth projects including our SUSTAIN program
  • Expect pre-tax income impact of planned plant turnarounds to be $38 to $43 million in 2024 versus approximately $30 million in 2023
  • Now expect to incur a total unfavorable impact to pre-tax income in 1Q24 of $23 to $27 million as a result of the process-based operational disruption at our Frankford, PA manufacturing site and a delayed ramp to planned utilization rates

"While the previously disclosed operational disruption at our Frankford, Pennsylvania manufacturing site is impacting our first quarter results, our teams have been focused on stabilization of phenol production, which is enabling us to ramp up our Hopewell and Chesterfield manufacturing facilities to our targeted utilization rates. We thank our customers, partners and AdvanSix teammates for their collaboration and agility to mitigate the value chain impact of this event. Our focus remains on performing in the current set of industry dynamics and executing levers in our control, including remaining disciplined on cost and optimizing working capital. Our outlook reflects a continued investment in our long-term potential through both our SUSTAIN program's planned expansion in granular ammonium sulfate production and increased infrastructure spend in 2024 to mitigate enterprise risk,” concluded Kane.

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 fourth quarter 2023 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 February 16 until 12 noon ET on February 23 by dialing (877) 344-7529 (domestic) or (412) 317-0088 (international). The access code is 4232990.

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 http://www.advansix.com.

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 the conflict between Russia and Ukraine, the conflict in Israel and Gaza, and the possible expansion of such conflicts; the effect 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 employees working remotely or 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, 2022, 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.

Consolidated Balance Sheets

(Unaudited)

(Dollars in thousands, except share and per share amounts)

 

 

December 31, 2023

 

December 31, 2022

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

29,768

 

 

$

30,985

 

Accounts and other receivables – net

 

165,393

 

 

 

175,429

 

Inventories – net

 

211,831

 

 

 

215,502

 

Taxes receivable

 

1,434

 

 

 

9,771

 

Other current assets

 

11,378

 

 

 

9,241

 

Total current assets

 

419,804

 

 

 

440,928

 

 

 

 

 

Property, plant and equipment – net

 

852,642

 

 

 

811,065

 

Operating lease right-of-use assets

 

95,805

 

 

 

114,688

 

Goodwill

 

56,192

 

 

 

56,192

 

Intangible assets

 

46,193

 

 

 

49,242

 

Other assets

 

25,384

 

 

 

23,216

 

Total assets

$

1,496,020

 

 

$

1,495,331

 

 

 

 

 

LIABILITIES

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

259,068

 

 

$

272,740

 

Accrued liabilities

 

44,086

 

 

 

48,820

 

Income taxes payable

 

8,033

 

 

 

30

 

Operating lease liabilities – short-term

 

32,053

 

 

 

37,472

 

Deferred income and customer advances

 

15,678

 

 

 

34,430

 

Total current liabilities

 

358,918

 

 

 

393,492

 

 

 

 

 

Deferred income taxes

 

151,059

 

 

 

160,409

 

Operating lease liabilities – long-term

 

63,961

 

 

 

77,571

 

Line of credit – long-term

 

170,000

 

 

 

115,000

 

Postretirement benefit obligations

 

3,660

 

 

 

 

Other liabilities

 

9,185

 

 

 

10,679

 

Total liabilities

 

756,783

 

 

 

757,151

 

 

 

 

 

STOCKHOLDERS' EQUITY

 

 

 

Common stock, par value $0.01; 200,000,000 shares authorized; 32,598,946 shares issued and 26,750,471 outstanding at December 31, 2023; 31,977,593 shares issued and 27,446,520 outstanding at December 31, 2022

 

326

 

 

 

320

 

Preferred stock, par value $0.01; 50,000,000 shares authorized; 0 shares issued and outstanding at December 31, 2023 and 2022

 

 

 

 

 

Treasury stock at par (5,848,475 shares at December 31, 2023; 4,531,073 shares at December 31, 2022)

 

(58

)

 

 

(45

)

Additional paid-in capital

 

138,046

 

 

 

174,585

 

Retained earnings

 

605,067

 

 

 

567,517

 

Accumulated other comprehensive loss

 

(4,144

)

 

 

(4,197

)

Total stockholders' equity

 

739,237

 

 

 

738,180

 

Total liabilities and stockholders' equity

$

1,496,020

 

 

$

1,495,331

 

AdvanSix Inc.

Consolidated Statements of Operations

(Unaudited)

(Dollars in thousands, except share and per share amounts)

 

 

Three Months Ended

December 31,

 

Twelve Months Ended

December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Sales

$

382,208

 

 

$

404,062

 

 

$

1,533,599

 

 

$

1,945,640

 

 

 

 

 

 

 

 

 

Costs, expenses and other:

 

 

 

 

 

 

 

Costs of goods sold

 

363,667

 

 

 

335,033

 

 

 

1,368,511

 

 

 

1,631,161

 

Selling, general and administrative expenses

 

24,828

 

 

 

22,628

 

 

 

95,538

 

 

 

87,748

 

Interest expense, net

 

2,189

 

 

 

763

 

 

 

7,485

 

 

 

2,781

 

Other non-operating (income) expense, net

 

(240

)

 

 

(16

)

 

 

(7,158

)

 

 

(1,841

)

Total costs, expenses and other

 

390,444

 

 

 

358,408

 

 

 

1,464,376

 

 

 

1,719,849

 

 

 

 

 

 

 

 

 

Income (loss) before taxes

 

(8,236

)

 

 

45,654

 

 

 

69,223

 

 

 

225,791

 

Income tax expense (benefit)

 

(3,154

)

 

 

12,029

 

 

 

14,600

 

 

 

53,905

 

Net Income (loss)

$

(5,082

)

 

$

33,625

 

 

$

54,623

 

 

$

171,886

 

 

 

 

 

 

 

 

 

Earnings per common share

 

 

 

 

 

 

 

Basic

$

(0.19

)

 

$

1.22

 

 

$

2.00

 

 

$

6.15

 

Diluted

$

(0.19

)

 

$

1.18

 

 

$

1.95

 

 

$

5.92

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

 

 

 

 

 

Basic

 

26,911,754

 

 

 

27,572,344

 

 

 

27,302,254

 

 

 

27,969,436

 

Diluted

 

26,911,754

 

 

 

28,608,181

 

 

 

28,007,630

 

 

 

29,031,107

 

AdvanSix Inc.

Consolidated Statements of Cash Flows

(Unaudited)

(Dollars in thousands)

 

 

Three Months Ended

December 31,

 

Twelve Months Ended

December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Cash flows from operating activities:

 

 

 

 

 

 

 

Net income (loss)

$

(5,082

)

 

$

33,625

 

 

$

54,623

 

 

$

171,886

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

18,673

 

 

 

17,483

 

 

 

73,010

 

 

 

69,353

 

Loss on disposal of assets

 

342

 

 

 

218

 

 

 

1,281

 

 

 

1,521

 

Deferred income taxes

 

(10,416

)

 

 

7,532

 

 

 

(9,347

)

 

 

16,228

 

Stock-based compensation

 

2,473

 

 

 

2,680

 

 

 

8,313

 

 

 

10,279

 

Amortization of deferred financing fees

 

154

 

 

 

154

 

 

 

618

 

 

 

618

 

Operational asset adjustments

 

 

 

 

 

 

 

(4,472

)

 

 

 

Changes in assets and liabilities, net of business acquisitions:

 

 

 

 

 

 

 

Accounts and other receivables

 

(20,696

)

 

 

10,496

 

 

 

21,489

 

 

 

17,842

 

Inventories

 

17,368

 

 

 

(57,070

)

 

 

3,286

 

 

 

(57,043

)

Taxes receivable

 

64

 

 

 

5,159

 

 

 

8,337

 

 

 

(8,824

)

Accounts payable

 

27,231

 

 

 

22,094

 

 

 

(20,756

)

 

 

55,863

 

Income taxes payable

 

8,003

 

 

 

(9,693

)

 

 

8,003

 

 

 

(9,693

)

Accrued liabilities

 

2,218

 

 

 

4,544

 

 

 

(5,569

)

 

 

(3,122

)

Deferred income and customer advances

 

13,263

 

 

 

31,869

 

 

 

(18,752

)

 

 

31,681

 

Other assets and liabilities

 

6,574

 

 

 

523

 

 

 

(2,514

)

 

 

(22,988

)

Net cash provided by operating activities

 

60,169

 

 

 

69,614

 

 

 

117,550

 

 

 

273,601

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Expenditures for property, plant and equipment

 

(38,352

)

 

 

(28,439

)

 

 

(107,377

)

 

 

(89,449

)

Acquisition of businesses

 

 

 

 

 

 

 

 

 

 

(97,456

)

Other investing activities

 

(1,116

)

 

 

(781

)

 

 

(3,520

)

 

 

(2,368

)

Net cash used for investing activities

 

(39,468

)

 

 

(29,220

)

 

 

(110,897

)

 

 

(189,273

)

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

Borrowings from line of credit

 

66,000

 

 

 

80,500

 

 

 

437,000

 

 

 

434,500

 

Payments of line of credit

 

(66,000

)

 

 

(100,500

)

 

 

(382,000

)

 

 

(454,500

)

Principal payments of finance leases

 

(240

)

 

 

(214

)

 

 

(938

)

 

 

(926

)

Dividend payments

 

(4,303

)

 

 

(3,990

)

 

 

(16,657

)

 

 

(15,073

)

Purchase of treasury stock

 

(8,500

)

 

 

(10,157

)

 

 

(46,151

)

 

 

(33,748

)

Issuance of common stock

 

 

 

 

258

 

 

 

876

 

 

 

1,304

 

Net cash used for financing activities

 

(13,043

)

 

 

(34,103

)

 

 

(7,870

)

 

 

(68,443

)

 

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 

7,658

 

 

 

6,291

 

 

 

(1,217

)

 

 

15,885

 

Cash and cash equivalents at beginning of year

 

22,110

 

 

 

24,694

 

 

 

30,985

 

 

 

15,100

 

Cash and cash equivalents at the end of year

$

29,768

 

 

$

30,985

 

 

$

29,768

 

 

$

30,985

 

 

 

 

 

 

 

 

 

Supplemental non-cash investing activities:

 

 

 

 

 

 

 

Capital expenditures included in accounts payable

 

 

 

 

$

22,660

 

 

$

14,879

 

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

December 31,

 

Twelve Months Ended

December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Net cash provided by operating activities

$

60,169

 

 

$

69,614

 

 

$

117,550

 

 

$

273,601

 

Expenditures for property, plant and equipment

 

(38,352

)

 

 

(28,439

)

 

 

(107,377

)

 

 

(89,449

)

Free cash flow (1)

$

21,817

 

 

$

41,175

 

 

$

10,173

 

 

$

184,152

 

 

 

 

 

 

 

 

 

(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

December 31,

 

Twelve Months Ended

December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Net Income (loss)

$

(5,082

)

 

$

33,625

 

 

$

54,623

 

 

$

171,886

 

Non-cash stock-based compensation

 

2,473

 

 

 

2,680

 

 

 

8,313

 

 

 

10,279

 

Non-recurring, unusual or extraordinary expenses (income) (2)

 

 

 

 

 

 

 

(4,472

)

 

 

 

Non-cash amortization from acquisitions

 

530

 

 

 

532

 

 

 

2,126

 

 

 

1,815

 

Non-recurring M&A costs

 

 

 

 

 

 

 

 

 

 

277

 

Benefit from income taxes relating to reconciling items

 

(504

)

 

 

(535

)

 

 

(661

)

 

 

(1,996

)

Adjusted Net Income (loss)

 

(2,583

)

 

 

36,302

 

 

 

59,929

 

 

 

182,261

 

Interest expense, net

 

2,189

 

 

 

763

 

 

 

7,485

 

 

 

2,781

 

Income tax expense (benefit) - Adjusted

 

(2,650

)

 

 

12,564

 

 

 

15,261

 

 

 

55,901

 

Depreciation and amortization - Adjusted

 

18,143

 

 

 

16,951

 

 

 

70,884

 

 

 

67,538

 

Adjusted EBITDA

$

15,099

 

 

$

66,580

 

 

$

153,559

 

 

$

308,481

 

 

 

 

 

 

 

 

 

Sales

$

382,208

 

 

$

404,062

 

 

$

1,533,599

 

 

$

1,945,640

 

 

 

 

 

 

 

 

 

Adjusted EBITDA Margin (3)

 

4.0

%

 

 

16.5

%

 

 

10.0

%

 

 

15.9

%

 

 

 

 

 

 

 

 

(2) Includes a pre-tax gain of approximately $11.4 million related to the Company's exit from the Oben alliance, the unfavorable impact to pre-tax income of approximately $4.5 million associated with a licensee of certain legacy ammonium sulfate fertilizer technology assets closing its facility, and the unfavorable impact to pre-tax income of approximately $2.4 million from the exit of certain low-margin oximes products.

(3) Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by Sales

 

Three Months Ended

December 31,

 

Twelve Months Ended

December 31,

 

 

2023

 

 

 

2022

 

 

2023

 

 

2022

Net Income (loss)

$

(5,082

)

 

$

33,625

 

$

54,623

 

$

171,886

Adjusted Net Income (loss)

 

(2,583

)

 

 

36,302

 

 

59,929

 

 

182,261

 

 

 

 

 

 

 

 

Weighted-average number of common shares outstanding - basic

 

26,911,754

 

 

 

27,572,344

 

 

27,302,254

 

 

27,969,436

Dilutive effect of equity awards and other stock-based holdings

 

 

 

 

1,035,837

 

 

705,376

 

 

1,061,671

Weighted-average number of common shares outstanding - diluted

 

26,911,754

 

 

 

28,608,181

 

 

28,007,630

 

 

29,031,107

 

 

 

 

 

 

 

 

EPS - Basic

$

(0.19

)

 

$

1.22

 

$

2.00

 

$

6.15

EPS - Diluted

$

(0.19

)

 

$

1.18

 

$

1.95

 

$

5.92

Adjusted EPS - Basic

$

(0.10

)

 

$

1.32

 

$

2.20

 

$

6.52

Adjusted EPS - Diluted

$

(0.10

)

 

$

1.27

 

$

2.14

 

$

6.28

 

 

 

 

 

 

 

 

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

~$50

Ammonia

2023

~$2

~$1

~$27

~$30

Sulfuric Acid

2024E

~$6

$28-$33

~$4

$38-$43

Ammonia

(4) Primarily reflects the impact of fixed cost absorption, maintenance expense, and the purchase of feedstocks which are normally manufactured by the Company.

 

Media Janeen Lawlor (973) 526-1615 janeen.lawlor@advansix.com

Investors Adam Kressel (973) 526-1700 adam.kressel@advansix.com

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