Slide 1: 2Q 2021 Earnings Presentation
2Q 2021 Earnings Presentation July 30, 2021
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: Record Quarterly Sales, Earnings and Margin Performance
Overview Record Quarterly Sales, Earnings and Margin Performance 2Q21 YoY • Terrific 2Q21 Results Variance – Record quarterly performance as a public company: strong volume and pricing improvement including continued growth in differentiated products supporting higher sales, margin expansion and rob
Slide 4: 2Q 2021 Financial Summary
2Q 2021 Financial Summary Terrific Performance Across The Board ($ Millions, Except Per Share Amounts) 2Q 2020 2Q 2021 Comments • Sales Up 88%: Volume +32%, Price +56% Sales $233.0 $437.7 – Market Pricing +25%, Raw Material Pass Through +31% • Higher Volume and Improved Market-Based Pricing Includin
Slide 5: 2Q 2021 EBITDA Bridge
2Q 2021 EBITDA Bridge Strong Commercial and Operational Execution ($M) $7 • (~$1M) Planned Plant Turnarounds $26 – (~$8M) in 2Q21 vs. (~$7M) in 2Q20 • Increased plant spend to support volume growth • Higher incentive compensation • Increased volume across all expense major product lines • ~$2M favor
Slide 6: Cash Flow / Deployment
Cash Flow / Deployment Robust Free Cash Flow Generation; Significant Optionality to Deliver Shareholder Value 2Q21 Cash Flow ($M) Capital Deployment Framework Net Income $44 • Maintenance + Health, Safety & Environmental Base Capex (~$75M per year) Depreciation & Amortization $17 • Manage cash and d
Slide 7: Industry Pricing And Spreads
Industry Pricing And Spreads Nylon Ammonium Sulfate Chemical Intermediates Further Improvement in Industry Spreads Strong Ag Fundamentals Overall Tight Supply and Demand Conditions 2Q21 YOY 2Q21 vs. 1Q21 2Q21 YOY 2Q21 vs. 1Q21 2Q21 YOY 2Q21 vs. 1Q21 Global Composite 26% 11% Acetone, Sm/Med Buyer 127
Slide 8: Industry Outlook
Industry Outlook Diverse End Market Exposure Supporting Expected Favorable Outlook • Steady North America nylon demand amid favorable end market conditions and tight industry supply • Residential and remodeling macro trends support North America carpet demand; Expect commercial Nylon demand to lag r
Slide 9: 2021 Priorities
2021 Priorities Executing Roadmap to Deliver Long-Term Shareholder Value Enhance Day-to-Day Execution By Strengthening Our Culture and Core Foundations of Excellence • Robust plant utilization to support record earnings and cash flow as a public company • Safety a top priority – zero incident mindse
Slide 10: Appendix
APPENDIX 10 2Q 2021 Earnings Presentation – July 30, 2021
Slide 11: Planned Plant Turnarounds
Planned Plant Turnarounds Pre-Tax Income Impact by Quarter (1) 1Q 2Q 3Q 4Q FY 2017 -- ~$10M ~$4M ~$20M ~$34M 2018 ~$2M ~$10M ~$30M -- ~$42M 2019 -- ~$5M ~$5M ~$25M ~$35M 2020 ~$2M ~$7M ~$20M ~$2M ~$31M 2021E ~$3M ~$8M -- $13-$16M $24-$27M • Timing driven by compliance, inspection and sustaining asse
Slide 12: Reconciliation of Non-GAAP Measures to GAAP Measures
APPENDIX Reconciliation of Non-GAAP Measures to GAAP Measures 12 2Q 2021 Earnings Presentation – July 30, 2021
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 EBITDA
Reconciliation Of Net Income To EBITDA (in $ thousands) (2) EBITDA is a non-GAAP measure defined as Net Income before Interest, Income Taxes, Depreciation and Amortization (3) EBITDA margin is defined as EBITDA divided by Sales The Company believes the non-GAAP financial measures included in this pr
Slide 15: Reconciliation Of Net Income To Adjusted EBITDA
Reconciliation Of Net Income To Adjusted EBITDA (in $ thousands) (4) EBITDA is a non-GAAP measure defined as Net Income before Interest, Income Taxes, Depreciation and Amortization (5) Adjusted EBITDA is defined as EBITDA plus Non-cash stock based compensation, non-recurring, unusual or extraordinar
Slide 16: Reconciliation Of Net Debt To TTM Adjusted EBITDA Ratio
Reconciliation Of Net Debt And Calculation Of Net Debt To Trailing 12-Months (TTM) Adjusted EBITDA Ratio (in $ thousands) The leverage ratio of Net debt to TTM Adjusted EBITDA is a financial measure that the Company believes is useful to investors and financial analysts in evaluating the Company’s l