Slide 1: 4Q 2023 Earnings Presentation
February 16, 2024 4Q 2023 Earnings Presentation
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains certain statements that may be deemed “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, that address activities, events or
Slide 3: Overview
Overview Navigated Challenging Nylon Market Conditions, Executing on Long-Term Strategies FY23 Sales • Diversified portfolio and business model provide resilience amid end market headwinds $1.5B – FY23 Net Income of $55M, Cash Flow from Operations of $118M – Navigated unfavorable global nylon indust
Slide 4: FY 2023 Financial Summary
FY 2023 Financial Summary Results Decline Against Record Prior Year Comparison With Improved Through-Cycle Profitability ($M, except per share amounts) Sales Adjusted EBITDA Adjusted Diluted EPS Free Cash Flow ($174) (21%) (50%) ($4.14) $184 $1,946 $308 $6.28 $1,533 $154 $2.14 $10 FY22 FY23 FY22 FY2
Slide 5: 4Q 2023 Financial Summary
4Q 2023 Financial Summary Unfavorable Nylon Industry Supply and Demand Persisted Through 4Q ($M, except per share amounts) Sales Adjusted EBITDA Adjusted Diluted EPS Free Cash Flow (5%) (77%) ($1.37) ($19) $404 $67 $41 $382 $1.27 $22 $15 ($0.10) 4Q22 4Q23 4Q22 4Q23 4Q22 4Q23 4Q22 4Q23 Adjusted 16.5%
Slide 6: Industry Pricing and Spreads
Industry Pricing and Spreads Nylon Ammonium Sulfate Chemical Intermediates Global Pricing Pressured by Unfavorable Multi-Quarter Reset in Nitrogen Pricing Amid More Balanced to Tight Global Acetone Supply and Supply and Demand Stable Supply Environment and Lower Energy Costs Demand ($/ston N content
Slide 7: Capital Expenditures
Capital Expenditures Smart and Disciplined Investments to Support Long-Term Potential Capex Framework Capex Trend ($M) • Supporting safe, stable and sustainable operations Healthy Balance Sheet and Base Capex $150M P r u d e n t L e v e r a g e R a $140-$150M tios • Prioritization based on complianc
Slide 8: SUSTAIN Program
SUSTAIN Program Multi-Year Investment to Expand Granular Ammonium Sulfate Production • Ammonium sulfate (AS) continues to be the primary go-to for sulfur nutrition, with continued strong consumption growth. North American customers require the granular form of AS and our SUSTAIN program is designed
Slide 9: Outlook
Outlook Diverse Portfolio and Advantaged Business Model to Support Through-Cycle Profitability • Expect nylon industry spreads to remain stabilized near current levels amid weak demand; Anticipate higher Nylon Solutions exports in 1H24 year-over-year Sales by End Market • Anticipate strong ammonium
Slide 10: Appendix
AovaNSix APPENDIX Good chemistry,
Slide 11: Planned Plant Turnarounds
Planned Plant Turnarounds Pre-Tax Income Impact by Quarter (1) Primary Unit 1Q 2Q 3Q 4Q FY Operation 2017 -- ~$10M ~$4M ~$20M ~$34M Sulfuric Acid • Timing driven by compliance, inspection and 2018 ~$2M ~$10M ~$30M -- ~$42M Ammonia sustaining asset base 2019 -- ~$5M ~$5M ~$25M ~$35M Sulfuric Acid • C
Slide 12: Reconciliation of Non-GAAP Measures to GAAP Measures
Reconciliation of Non-GAAP Measures to GAAP Measures
Slide 13: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow (in $ thousands) (1) Free cash flow is a non-GAAP measure defined as Net cash provided by operating activities less Expenditures for property, plant and equipment The Company believes that this metric is useful to investor
Slide 14: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA (in $ thousands) (2) Includes a pre-tax gain of approximately $11.4 million related to the Company's exit from the Oben alliance, the unfavorable impact to pre-tax income of approximately $4.5 million associated with a licensee of certain legacy ammoni
Slide 15: Reconciliation of Earnings Per Share to Adjusted Earnings Per Share
Reconciliation of Earnings Per Share to Adjusted Earnings Per Share (in $ thousands except share and per share amounts) The Company believes the non-GAAP financial measures included in this presentation provide meaningful supplemental information as they are used by the Company’s management to evalu