Advansix Inc. (ASIX) 10-Q Quarterly Report August 2023

- AdvanSix (NYSE: ASIX) today announced its financial results for the second quarter ending June 30, 2023. Overall, the Company delivered solid earnings and cash flow results amid a continued dynamic macro environment.

Second Quarter 2023 Summary

•Sales down approximately 27% versus prior year driven by 19% unfavorable impact of market-based pricing, 6% lower raw material pass-through pricing, and 2% lower volume

•Net Income of $32.7 million, a decrease of $32.4 million versus the prior year

•Adjusted EBITDA of $65.8 million, a decrease of $39.6 million versus the prior year

•Cash Flow from Operations of $35.0 million, a decrease of $60.9 million versus the prior year

•Capital Expenditures of $19.3 million, an increase of $1.5 million versus the prior year

•Free Cash Flow of $15.7 million, a decrease of $62.4 million versus the prior year

•Repurchased 410,862 shares for approximately $14.9 million in 2Q23

“AdvanSix successfully delivered solid earnings and cash flow results in the second quarter against a record prior year,” said Erin Kane, president and CEO of AdvanSix. “The AdvanSix team executed well within a mixed set of dynamics across the portfolio. We captured strong in-season demand for plant nutrients in a significantly lower nitrogen and raw material environment, navigated a nylon pricing environment pressured by industry supply and demand conditions including increased low-priced imports, while North American acetone supply and demand continued to be balanced. Our team’s collective performance and advantaged business model supporting through-cycle profitability illustrates the value and resilience of our diversified chemistry company. Our confidence is reflected in once again increasing our quarterly cash dividend by 10 percent.”

The following information was filed by Advansix Inc. (ASIX) on Friday, August 4, 2023 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 decreased by $108.5 million for the six months ended June 30, 2023 versus the prior year period due primarily to (i) a $69.8 million unfavorable cash impact from working capital (comprised of Accounts and other receivables, Inventories, Accounts payable and Deferred income and customer advances) year-over-year largely driven by changes occurring during the six months ended June 30, 2023 and (ii) a $60.5 million decrease in net income.
Financial - Dividend Highlight
Dividends During 2023, the Company has declared dividends as follows: 20 Results of Operations (Dollars in thousands, unless otherwise noted) Sales The change in sales compared to the prior year period is attributable to the following: Sales decreased in the three months ended June 30, 2023 compared to the prior year period by $155.8 million (approximately 27%) due to (i) net unfavorable market-based pricing (approximately 19%) primarily reflecting lower pricing across our ammonium sulfate and nylon product lines, (ii) lower raw material pass-through pricing (approximately 6%) as a result of a net cost decrease in benzene and propylene (inputs to cumene which is a key feedstock to our products) and (iii) a decrease in sales volume (approximately 2%).
Financial - Shares Highlight
Cash used for financing activities increased by $5.7 million for the six months ended June 30, 2023 versus the prior year period due primarily to payments for share repurchases of $28.4 million and cash paid for dividends of approximately $8.0 million during the six months ended June 30, 2023 compared to $10.4 million and $7.0 million during the prior year period, respectively, partially offset by net borrowings of $25.0 million during the six months ended June 30, 2023 compared to net borrowings of $11.5 million during the prior year period.
M & A - Other
The Credit Agreement also contains...Read more
Revenue - Product
Sales decreased in the six...Read more
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
Financial - Expense
Selling, general and administrative expenses...Read more
Financial - Shares
Recent Developments Share Repurchase Authorization...Read more
Revenue - Product
Due to the ammonium sulfate...Read more
Financial - Earnings
As of June 30, 2023,...Read more
Financial - Expense
Selling, General and Administrative Expenses...Read more
Financial - Expense
Although we have ongoing environmental...Read more
Other - Other
Non-GAAP financial measures should be...Read more
Other - Other
Nylon 6 resin prices generally...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
Financial - Earnings
Borrowings under the Credit Agreement...Read more
Other - Other
The transition was effective July...Read more
Other - Other
This was partially offset by...Read more
Financial - Earnings
21 Gross margin percentage decreased...Read more
Other - Other
If the Company does not...Read more
Other - Other
Our differentiated product offerings include...Read more
Other - Other
Our differentiated Nylon 6 products,...Read more
Other - Other
Although we believe forward-looking statements...Read more
Financial - Expense
Capital expenditures are expected to...Read more
Other - Other
The Company expects cash contributions...Read more
Other - Other
26 Substantially all tangible and...Read more
Financial - Expense
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 10.1: 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: 0001673985-23-000124
Submitted to the SEC: Fri Aug 04 2023 4:19:32 PM EST
Accepted by the SEC: Fri Aug 04 2023
Period: Friday, June 30, 2023
Industry: Plastic Materials Synth Resins And Nonvulcan Elastomers