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

- AdvanSix (NYSE: ASIX) today announced its financial results for the third quarter ending September 30, 2022. Overall, results were impacted by the previously announced extended planned plant turnaround.

Third Quarter 2022 Summary

•Sales up approximately 7% versus prior year driven by 18% favorable impact of market-based pricing, 4% higher raw material pass-through pricing, and 3% contribution from acquisitions, partially offset by 18% lower volume

•Net Income of $10.0 million, a decrease of $33.9 million versus the prior year

•Adjusted EBITDA of $33.3 million, a decrease of $44.4 million versus the prior year

•Cash Flow from Operations of $58.9 million, a decrease of $17.6 million versus the prior year

•Capital Expenditures of $22.2 million, an increase of $9.2 million versus the prior year

•Free Cash Flow of $36.7 million, a decrease of $26.8 million versus the prior year

•Repurchased 362,609 shares for approximately $13 million in 3Q22; Year-to-date repurchases of approximately $24 million

•Increased 3Q22 quarterly dividend by 16% to $0.145 per share

“Our third quarter performance reflects the resilience of our business model and our ability to navigate challenging conditions," said Erin Kane, president and CEO of AdvanSix. "Despite the unfavorable impact of the extended plant turnaround as previously announced on October 7, sales grew year-over-year as our commercial execution offset lower sales volume. Our healthy cash flow performance continued to support smart and disciplined deployment of capital in the quarter into reinvestment in the business, $17 million of cash returned to shareholders in the form of dividends and share repurchases, and further debt reduction."

The following information was filed by Advansix Inc. (ASIX) on Friday, November 4, 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 $18.5 million for the nine months ended September 30, 2022 versus the prior year period due primarily to a $55.5 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 $50.7 million favorable cash impact from working capital for the nine months ended September 30, 2022 compared to a $4.9 million 28 unfavorable cash impact in the prior year period and a $22.1 million increase in net income.
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 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
Capital Expenditures (Dollars in thousands,...Read more
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Cash used for investing activities...Read more
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Our ability to fund our...Read more
Financial - Cash Flow
Our cash flows are affected...Read more
Revenue - Product
The Company experienced a material...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
Financial - Expense
These increases were partially offset...Read more
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The pandemic and related containment...Read more
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Selling, general and administrative expenses...Read more
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The Company currently plans to...Read more
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Due to the ammonium sulfate...Read more
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Although we have ongoing environmental...Read more
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Non-GAAP financial measures should be...Read more
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The Company's non-GAAP measures may...Read more
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During the nine months ended...Read more
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We also utilize maintenance excellence...Read more
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Actual results and the timing...Read more
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If the Company does not...Read more
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Nylon 6 resin prices track...Read more
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We continue to invest in...Read more
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Substantially all tangible and intangible...Read more
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The acquisition provides a unique...Read more
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The following tables may also...Read more
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We believe that Nylon 6...Read more
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Starting in the second half...Read more
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Most significant is acetone, the...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: 0001673985-22-000125
Submitted to the SEC: Fri Nov 04 2022 5:04:58 PM EST
Accepted by the SEC: Fri Nov 04 2022
Period: Friday, September 30, 2022
Industry: Plastic Materials Synth Resins And Nonvulcan Elastomers