Advansix Inc. (ASIX) 10-Q Quarterly Report August 2022

- AdvanSix (NYSE: ASIX) today announced its financial results for the second quarter ending June 30, 2022. Overall, the Company generated robust quarterly sales, earnings and cash flow.

Second Quarter 2022 Summary

•Sales up approximately 33% versus prior year driven by 26% favorable impact of market-based pricing, 6% higher raw material pass-through pricing, and 5% contribution from acquisitions, partially offset by 4% lower volume

•Net Income of $65.2 million, an increase of $21.0 million versus the prior year

•Adjusted EBITDA of $105.4 million, an increase of $25.7 million versus the prior year

•Cash Flow from Operations of $95.9 million, an increase of $43.9 million versus the prior year

•Capital Expenditures of $17.8 million, an increase of $7.5 million versus the prior year

•Free Cash Flow of $78.1 million, an increase of $36.5 million versus the prior year

•Repurchased 87,251 shares for approximately $3 million

“Our robust second quarter results, featuring top and bottom line growth sequentially and year-over-year, reflect the continued strength and advantage of our business model and diverse product portfolio," said Erin Kane, president and CEO of AdvanSix. "In the quarter, strong commercial performance to meet customer demand more than offset higher inflation as well as lower sales volume primarily due to unfavorable weather conditions driving a reduction of in-season fertilizer demand. Our healthy cash flow performance reflects the quality of our earnings while supporting continued reinvestment in the business and return of cash to shareholders including opportunistic share repurchases and a 16 percent increase in our quarterly cash dividend. Our integration of U.S. Amines is progressing very well as expected, adding additional value to our portfolio."

The following information was filed by Advansix Inc. (ASIX) on Friday, August 5, 2022 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 - Earnings Highlight
Non-GAAP Measures (Dollars in thousands, unless otherwise noted) The following tables set forth the non-GAAP financial measures of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Earnings Per Share.
Financial - Cash Flow Highlight
Cash Flow Summary Cash provided by operating activities increased by $36.0 million for the six months ended June 30, 2022 versus the prior year period due primarily to a $56.0 million increase in net income and a $16.8 million favorable cash impact from working capital (comprised of Accounts and other receivables, Inventories, Accounts payable and Deferred income and customer advances) year-over-year with a $11.9 million favorable cash impact from working capital for the six months ended June 30, 2022 compared to a $5.0 million unfavorable cash impact in the prior year period, which included a $12.3 million cash tax refund.
Financial - Shares Highlight
Cash provided by financing activities increased by $75.5 million for the six months ended June 30, 2022 versus the prior year period due primarily to net borrowings of $11.5 million for the six months ended June 30, 2022 compared to net repayments of $80.0 million during the prior year period partially offset by payments for share repurchases of $9.8 million and cash paid for dividends of approximately $7.0 million as described above.
M & A - Other Highlight
The Credit Agreement also contains financial covenants that require the Company to maintain a Consolidated Interest Coverage Ratio (as defined in the Credit Agreement) of not less than 3.00 to 1.00 and to maintain a Consolidated Leverage Ratio of (i) 4.00 to 1.00 or less for the fiscal quarter ending December 31, 2021, through and including the fiscal quarter ending September 30, 2023 and (ii) 3.75 to 1.00 or less for each fiscal quarter thereafter (subject to the Company's option to elect a consolidated leverage ratio increase in connection with certain acquisitions).
Other - Other
While our integration, scale and...Read more
Financial - Expense
Capital Expenditures (Dollars in thousands,...Read more
M & A - Other
Cash used for investing activities...Read more
Other - Other
Our ability to fund our...Read more
Financial - Cash Flow
Our 24 cash flows are...Read more
Revenue - Product
The Company experienced a material...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
Gross margin percentage decreased slightly...Read more
Revenue - Product
The pandemic and related containment...Read more
Financial - Earnings
Gross margin percentage increased by...Read more
Financial - Earnings
The Company currently plans to...Read more
Financial - Expense
Costs of goods sold increased...Read more
Revenue - Product
Due to the ammonium sulfate...Read more
Financial - Expense
Although we have ongoing environmental...Read more
Other - Other
Non-GAAP financial measures should be...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
Other - Other
Nylon 6 resin prices track...Read more
Financial - Expense
Costs of Goods Sold 21...Read more
M & A - Other
We continue to invest in...Read more
Financial - Expense
Selling, General and Administrative Expenses...Read more
Other - Other
Our differentiated Nylon 6 products...Read more
Other - Other
Although we believe forward-looking statements...Read more
Other - Other
Substantially all tangible and intangible...Read more
M & A - Other
The acquisition provides a unique...Read more
Other - Other
The following tables may also...Read more
Other - Other
We believe that Nylon 6...Read more
Financial - Expense
Selling, general and administrative expenses...Read more
Other - Other
Starting in the second half...Read more
Financial - Expense
Most significant is acetone, the...Read more
Other - Other
The Company's effective tax rate...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 10.2: Material Contract

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: 0001673985-22-000102
Submitted to the SEC: Fri Aug 05 2022 4:14:51 PM EST
Accepted by the SEC: Fri Aug 05 2022
Period: Thursday, June 30, 2022
Industry: Plastic Materials Synth Resins And Nonvulcan Elastomers