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

- AdvanSix (NYSE: ASIX) today announced its financial results for the second quarter ending June 30, 2021. Overall, the Company generated record sales, earnings and margin in the quarter reflecting strong execution amid improving end market demand and tight industry supply conditions.

Second Quarter 2021 Results

•Sales up approximately 88% versus prior year driven by 32% higher volume, 31% higher raw material pass-through pricing and 25% favorable impact of market-based pricing

•Net Income of $44.1 million, an increase of $32.7 million versus the prior year

•EBITDA of $76.0 million, an increase of $45.2 million versus the prior year

•EBITDA Margin of 17.4%, an increase of 420 bps versus the prior year

•Cash Flow from Operations of $51.9 million, an increase of $43.1 million versus the prior year

•Capital Expenditures of $10.3 million, a decrease of $7.2 million versus the prior year

•Free Cash Flow of $41.6 million, an increase of $50.3 million versus the prior year

“Our entire organization performed exceptionally well in the current set of industry conditions to support our customers throughout the quarter while delivering record sales, earnings and margin performance," said Erin Kane, president and CEO of AdvanSix. "Our record performance is attributable to strong volume and pricing improvement including continued growth in differentiated products amid favorable end market conditions and tight industry supply. Demand has improved across a number of the diverse end markets we serve including building and construction, auto, electronics, packaging, paints and coatings, and solvents as well as the strongest set of agricultural industry fundamentals seen in the last decade. Across the board, it has been a terrific first half of 2021 with robust earnings and cash flow performance reflecting strong execution and the strength of our business model and portfolio."

The following information was filed by Advansix Inc. (ASIX) on Friday, July 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 $3.8 million in the three months ended June 30, 2021 compared to the prior year period due primarily to increased incentive and stock-based compensation costs.

Financial - Cash Flow Highlight
Cash Flow Summary 25 Cash provided by operating activities increased by $80.5 million for the six months ended June 30, 2021 versus the prior year period due primarily to a $52.3 million increase in net income, a $20.1 million cash improvement from Taxes receivable (including a $12.3 million cash tax refund received in the first quarter of 2021) and a $21.0 million favorable cash impact from working capital (comprised of Accounts receivables, Inventories, Accounts payable and Deferred income) year-over-year with a $16.9 million unfavorable cash impact from working capital for the six months ended June 30, 2021 compared to a $37.8 million unfavorable cash impact in the prior year period.
Financial - Earnings Highlight
Gross margin percentage increased by approximately 4% in the three months ended June 30, 2021 compared to the prior year period due primarily to (i) increased sales volume (approximately 3%), (ii) the impact of formula-based pass-through pricing and increased market pricing (approximately 2%) and (iii) the initial collection of insurance proceeds related to the 2019 shut-down of cumene supplier Philadelphia Energy Solutions (approximately 1%), partially offset by higher manufacturing spend to support volume growth (approximately 2%).
Financial - Expense Highlight
21 Selling, general and administrative expenses increased by $6.3 million in the six months ended June 30, 2021 compared to the prior period due primarily to increased incentive and stock-based compensation costs and increased IT costs.
Financial - Earnings Highlight
Gross margin percentage increased by approximately 5% in the six months ended June 30, 2021 compared to the prior year period due primarily to increased sales volume (approximately 4%) and the impact of formula-based pass-through pricing and increased market pricing (approximately 3%), partially offset by an unfavorable non-cash LIFO inventory reserve adjustment (approximately 1%) and higher manufacturing spend to support volume growth (approximately 1%).
Other - Other
While our integration, scale and...Read more
Financial - Expense
Capital Expenditures (Dollars in thousands,...Read more
Other - Other
Our ability to fund our...Read more
Financial - Cash Flow
Our cash flows are affected...Read more
Other - Other
These favorable impacts were partially...Read more
Revenue - Product
As previously disclosed, the Company...Read more
Financial - Shares
On May 4, 2018, the...Read more
Financial - Expense
For further information regarding risk...Read more
Financial - Shares
On February 22, 2019, the...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
Other - Other
We also utilize maintenance excellence...Read more
Other - Other
Actual results and the timing...Read more
Other - Other
If the Company does not...Read more
Financial - Expense
Costs of goods sold increased...Read more
Other - Other
Nylon 6 resin prices track...Read more
Other - Other
Starting in the second half...Read more
Other - Other
The Company believes these non-GAAP...Read more
M & A - Other
The Second Amended and Restated...Read more
Other - Other
Our differentiated Nylon 6 products...Read more
Financial - Shares
The Company's effective tax rate...Read more
Other - Other
Although we believe forward-looking statements...Read more
Other - Other
The following tables may also...Read more
Other - Other
We believe that Nylon 6...Read more
Revenue - Product
We produce ammonium sulfate fertilizer...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: 0001673985-21-000113
Submitted to the SEC: Fri Jul 30 2021 4:11:55 PM EST
Accepted by the SEC: Fri Jul 30 2021
Period: Wednesday, June 30, 2021
Industry: Plastic Materials Synth Resins And Nonvulcan Elastomers