Advansix Inc. (ASIX) 10-Q Quarterly Report April 2021

- 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."

The following information was filed by Advansix Inc. (ASIX) on Friday, April 30, 2021 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Advansix Inc.'s 10-Q Quarterly Report:

Financial - Expense Highlight
Selling, General and Administrative Expenses Selling, general and administrative expenses increased by $2.6 million in the three months ended March 31, 2021 compared to the prior year period due primarily to increased incentive and stock-based compensation costs.

Financial - Earnings Highlight
Gross margin percentage increased by approximately 5% in the three months ended March 31, 2021 compared to the prior year period due primarily to higher market pricing (approximately 4%) driven by chemical intermediates, particularly acetone, and increased sales volume across all product lines (approximately 4%), partially offset by an unfavorable non-cash LIFO inventory reserve adjustment (approximately 2%).
Other - Other Highlight
While our integration, scale and range of product offerings make us one of the most efficient manufacturers in our industry, these attributes also expose us to increased risk associated with material disruptions at any one of our production facilities or logistics operations which could impact the overall manufacturing supply chain.
Financial - Expense Highlight
Capital Expenditures (Dollars in thousands, unless otherwise noted) Our operations are capital intensive, requiring ongoing investments that have consisted, and are expected to continue to consist, primarily of capital expenditures required to maintain and improve equipment reliability, expand production output, further improve mix, yield and cost position, and comply with environmental and safety regulations.
Financial - Cash Flow Highlight
Cash Flow Summary Cash provided by operating activities increased by $37.4 million for the three months ended March 31, 2021 versus the prior year period due primarily to a $19.6 million increase in net income, a $19.6 million cash improvement from Taxes receivable (including a $12.3 million cash tax refund received in the first quarter of 2021), a $4.8 million favorable cash impact from working capital (comprised of Accounts receivables, Inventories, Accounts payable and Deferred income) year-over-year with a $6.7 million unfavorable cash impact from working capital for the three months ended March 31, 2021 compared to a $11.5 million unfavorable cash impact in the prior year period and a $1.7 million favorable impact from non-cash Depreciation and amortization expense.
Other - Other
Our ability to fund our...Read more
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Our cash flows are affected...Read more
Revenue - Product
As previously disclosed, the Company...Read more
Financial - Shares
On May 4, 2018, the...Read more
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For further information regarding risk...Read more
Financial - Shares
On February 22, 2019, the...Read more
Other - Other
These favorable impacts were partially...Read more
Financial - Earnings
The Company currently plans to...Read more
Other - Other
Cash used for financing activities...Read more
Revenue - Product
Due to the ammonium sulfate...Read more
Financial - Expense
Although we have ongoing environmental...Read more
Revenue - Product
The pandemic and these containment...Read more
Other - Other
Non-GAAP financial measures should be...Read more
Financial - Earnings
Non-GAAP Measures (Dollars in thousands,...Read more
Other - Other
The Company's non-GAAP measures may...Read more
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We also utilize maintenance excellence...Read more
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The Second Amended and Restated...Read more
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Our differentiated Nylon 6 products...Read more
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During the second half of...Read more
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Although we believe forward-looking statements...Read more
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Capital expenditures are expected to...Read more
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The following tables also present...Read more
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We believe that Nylon 6...Read more
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18 We produce ammonium sulfate...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Advansix Inc. provided additional information to their SEC Filing as exhibits

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Exhibit 32.2: Section 1350 Certification

Ticker: ASIX
CIK: 1673985
Form Type: 10-Q Quarterly Report
Accession Number: 0001673985-21-000068
Submitted to the SEC: Fri Apr 30 2021 4:18:52 PM EST
Accepted by the SEC: Fri Apr 30 2021
Period: Wednesday, March 31, 2021
Industry: Plastic Materials Synth Resins And Nonvulcan Elastomers